UK District Energy Journal December 2019

!\"#$%&'(%)'#*+,(-.#/01(+23#4#5&&1,#67#82',&'#901+:#!;<# # !\"#$%&'(%)'#*+,(-.#/01(+23# THE VOICE FOR THE UK’S DISTRICT ENERGY SCHEMES Welcome to the latest 2019 edition of The UK District Energy Journal, the monthly round up of news and useful information for and by ukDEA members. In this edition: Chairman’s Diary, Consultations, BEIS News, Members’ Spotlight, Members’ Product Spotlight and much, much more. Copy deadline date for our next 2020 edition: 14th January 2020 Email: [email protected] 1

CONTENT INDEX Chairman’s Foreward Page 3 Chairman’s Diary Pages 4 to 6 The Heat Trust Page 6 Next ukDEA Workshop Page 7 New Members Pages 8 to 9 Get Social Pages 10 to 11 BEIS News Pages 12 to 15 Useful BEIS Guidance Links Page 16 Members’ Spotlights Pages 17 to 20 Members’ Product Spotlights Pages 21 to 23 Members’ Job Vacancies Pages 24 to 27 Members’ News Pages 28 to 34 Introduction to ukDEA and OPSS Page 34 Geospatial Commission Plans to Map all UK Buried Infrastructure Page 35 Heat Networks Skill Review Page 36 European Investment Bank Page 36 DBDH Webinar Recordings Page 37 Waste Heat Page 37 UK Power Networks Pages 38 to 39 The International Agency Page 40 ACER and Innovate UK Page 41 The Scottish Government Page 42 Open Consultations Pages 43 to 44 Consultation Responses Page 45 Consultation Outcome Page 46 Ofgem News Pages 47 to 48 2

THE VOICE FOR THE UK’S DISTRICT ENERGY SCHEMES Dear Members, Before you all suddenly think we have changed the name of the association or you have all entered a time warp when you saw the front cover, be assured we have not and you haven’t! However, having recently purchased this poster and book at a venue where I certainly didn’t expect to see these type of things it certainly made be stop and think. The first is a poster from I expect the 1950’s when coal gas was in use and pretty much all of our energy came from coal. The book is from 1930 when coal was commonly used in boilers and this could have been a district heating boiler of its time for “large centralised heating plants” and an output of up to 2.4 MW (and a cost if my numbers are right of around £0.51/kW !). Not only have we significantly moved forward in terms of costs, but also fuels and technology and that set me wondering where will be as a sector in another 70 or 90 years ? Will the Nottingham’s, Sheffield’s and Southampton’s of this world all long been forgotten? Will we all have some form of micro in home generator ? I sincerely hope not because I firmly believe in whatever version of the future you subscribe to that district energy will have a large part to play, but what technologies will we be using to power them ? To me that is the key to driving our sector forward, and ensuring these schemes mentioned above and many many others like them continue to exist thrive and expand. I firmly believe this must be a process of continually reviewing how we look at district energy and what technologies we can combine to create longevity in our networks both in terms of delivering a low carbon solution but also a financially viable one. At this time of reducing carbon emissions from electricity and the planned changes to SAP to name just two, it would be easy to see a future where district heating withers away and is replaced by widespread use of electric heating. I would therefore encourage you to engage both with association and where possible in the schemes you are involved with to help ensure our sector doesn’t become another forgotten way of doing things and that we remain an integral part of the UK’s energy infrastructure long into the future! Building on this theme a key focus for Chris and I is to make sure that members stay engaged with us in that on going journey Whether it is through us acting as a source of knowledge and information on what is happening in the industry to ways we can collaborate to work together. A recent really good example of this was the event we held at BEIS in November to discuss the Metering and Billing Consultation. I was delighted to see nearly 30 members in the room, and a really active discussion taking place. Events like this we understand are welcomed by members and help to cement our worth with BEIS. We can then use that relationship put forward our ideas from a base of an organisation who is respected, knowledgeable and active in the sector. This is particularly important when we are working hard to try and ensure that the proposasl contained in the Future Homes consultation don’t damage our sector beyond repair. We also have a another collaborative event planned with BEIS and the GLA for early in the New Year looking at how our planning system can help develop heat networks. This is another exciting opportunity for you and your stakeholders to get involved so please do look at the emails we have sent on this. Finally on a positive note I hope that whatever you have planned for the Christmas break means that you have a happy and healthy end to 2019 and I look forward to meeting you all again in 2020! 3

Chairman’s Diary Written by Simon Woodward, ukDEA Chairman and Technical Director Date: 26th November 2019 Subject: National Infrastructure Mapping With: Holger Kessler, The Cabinet Office. Type of Event: Telephone Call. Details: An interesting introductory call with Holger and further details will be forwarded to members in an Informaiton Note. Holger and his team are exploring the Governments stated intention to map all buried utilities to ensure that this data is widely available and H&S incidents that arise when excavating in busy urban areas can hopefully be prevented. They see this as being akin to the Land Registry but for buried infrastructure. Date: 21st November 2019 Subject: Heat Networks Bill With: Urzula Kasperek, Scottish Government Type of Event: Teleconference Details: A general review meeting with Urzula to discuss what their plans are in Scotland and in particular the impending Heat Networks Bill. We agreed to keep talking over the coming monts and arrange to meet up. Date: 19th November 2019 Subject: Heat Metering and Billing Workshop With: ukDEA Members and BEIS Type of Event: Workshop Details: A very successful event held at BEIS’s conference centre with nearly 30 members. Date: 11th November 2019 Subject: Membership of the ukDEA With: Tony Jackson, Aquatherm UK Limited Type of Event: Meeting Details: At that time a future members meeting but pleased to now welcome Tony and his colleagues as new members of the ukDEA and their interesting range of products. 4

Date: 1st November 2019 Subject: Collaboration with TP Heat Networks and ukDEA on events programme. With: Sam Crichton - Triple Point Heat Networks Type of Event: Telephone Call. Details: A call to discuss how we may work together to jointly promote heat networks. HNIP have a major event planned early in 2020 and they were keen to involve the ukDEA in this. Date: 30th October 2019 Subject: Meeting ukDEA/SSE With: Giles Newton, SSE Type of Event: Meeting Details: A members meeting with SSE. Whilst I cannot report what was discussed, this underlined again how useful members find these types of meetings to understand more about the ukDEA and ways they can interact with it and gain best value from their membership. Date: 15th October 2019 Subject: Simon Woodward/Emma Floyd Catch Up With: Emma Floyd, BEIS Type of Event: Meeting Details: One of our regular catch ups where we discuss the forthcoming metering workshop and the various consultations that have been issued as well as progress with HNIP. Date: 11th October 2019 Subject: WRAS Stakeholder Interview With: Liz McDermott, Senior Research Executive, Mustard Research Type of Event: Phone Call Details: Call with Liz to discuss the ukDEA members feedback to the issues they had bene experiencing with WRAS. The feedback was really appreciated by Liz and she has fed this back to WRAS as part of the survey they are undertaking for WRAS on what issues a range of stakeholders have with them. 5

Date: 7th October 2019 Subject: Meeting with ukDEA Chairman With: KDHC Type of Event: Developing District Heating networks in Korea. Details: Meeting with two representatives of the KDHC which is the large Korean District Heating Corporation who were in the UK exploring potential opportunities to develop networks. The Heat Trust A message from the ukDEA Chairman, Simon Woodward: As members will know I have represented the ukDEA on the Heat Trust committee for over 5 years, before it was even launched in 2015. As a part of the refresh of the committee I have been asked by Bindi to step down so the ukDEA no longer has any representation. Whilst I will be sad to no longer be involved I understand that bringing in fresh faces and new ideas on committees after a period is very normal practice and we have reproduced below the thank you mail from Bindi. If any members have any particularly views on this that they would like to discuss please do contact the chairman at [email protected] ‘Dear Simon, As you know, I have been looking at refreshing the Stakeholder Committee as some members have been in post since Heat Trust was launched in 2015. I believe it is important to do this to ensure new voices can contribute and to benefit from a wider pool of expertise. At this point I will not be seeking to reappoint you to the Stakeholder Committee. I appreciate the work that you've done and hope that you have enjoyed being part of the Stakeholder Committee. Of course, regulation is on the horizon which will set the direction for the market, but I hope you are pleased with what we have been able to collectively achieve in four years. I am therefore writing to thank you for all of your valuable contributions to the Stakeholder Committee. I know you have been involved in the development of Heat Trust from very early on with my predecessor Aimee, so have been an important contributor on its journey to where it is today. Thank you again for your input which I have valued and appreciated. With best wishes, Bindi’ 6

Next ukDEA Workshop - Using Planning to Deliver Heat Networks As you will be aware we wrote to you recently regarding ideas for forthcoming workshops/events. Firstly, that request is still very much open and if members have ideas for workshops/events they believe that we should organise, that would deal with an issues(s) that would interest a wide range of members then please let us have your thoughts. From the last round of mails we received a number of ideas. One that has gained particularly traction when we discussed it with BEIS and the GLA (as members will know we are not adverse to setting up these events in isolation but working collaboratively as we did for SAP makes a lot of sense) is the concept of a workshop on “ Using Planning to Deliver Heat Networks”. This is not how to plan a heat network but specifically how can we all as a sector use the existing planning policies and regulations to aid the delivery of heat networks. From this initial discussion we will be working up a draft program in early 2020. The concept is that this event will be held at BEIS towards the end of January 2020. This will allow people time to make sure it is their diaries, be available to present and also not conflict with any election issues that may arise. As you will see it is aimed not only at members but also at local authority officers and planners who are involved with heat networks. We have ideas of how we can potentially fill each slot with an interesting speaker (apart from item 1 below) but what we now want to do is to hear from you as the members Our questions to you are: 1. We have a specific slot near the start where we are hoping one of our (Legal ?) members can make the presentation on “National Planning Framework” (Does the policy landscape support or hinder the development of district level heat networks). To be frank we are less focused on the words in the brackets, although clearly it would be helpful if a view could be provided. It is more of an expert view on how the National Planning Framework relates to district heating networks and what the various documents a Council should have in place as a result of these are. Essentially it is an introduction to the planning system in relation to district heating. I would be very happy to discuss and or/tweak this presentation to match the available expertise within the association once we have a response from members. 2. Do any members want to speak/have case studies on the talks that we have identified or can they suggest speakers? 3. Are there are any general comments from members on what is propose? 4. Are there any additional topics that could be considered which directly relate to this subject and if there are additional topics then who could speak on these? We believe that no one has attempted such an event in the past because it is a complex subject. Although lots of good work is carried out in isolated pockets around the UK and our aim is to shine a light on these and see if we can encourage their use more widely. We do hope that you will engage with this event and respond to the questions above. 7

New Members We are pleased to welcome the following Associate Members to the association: AQUATHERM UK LIMITED Principal Contact: Tony Jackson All enquiries to: [email protected] An Introduction Statement from AQUATHERM UK LIMITED 'Founded in 1973, Aquatherm is the leading global manufacturer of PP-R pipe systems with partners in over 70 countries around the world, manufacturing over 38 million metres of pipe and over 40 million fittings annually. The numerous product lines provide superior solutions in potable water applications, heating systems, fire sprinkler systems, air-conditioning and refrigeration technology, as well as in surface heating and cooling systems. The product range comprises more than 17,000 articles in six product lines. Aquatherm is accredited by ISO 9001, 14001 & 50001 along with vaious national and international independent authorities and institutions confirm aquatherm‘s quality standard. Aquatherm Ti : Thermally-Insulated District Heating & Cooling Pipe System Aquatherm’s thermally insulated pipe system provides a safe and efficient method of transporting media whilst minimising heat loss or gain thus offering an energy and fuel-efficient solution for a wide range of industrial, commercial and domestic applications. Aquatherm is available in sizes from 32mm to 630mm and has many benefits over traditional systems - 1. Due to the smooth inner surfaces and the material’s resistance to residue adhesion, the calculated initial flow rates are sustained throughout the life cycle of the installation, thus resulting in no long-term deterioration in flow performance or pumping energy rises. 2. Aquatherm is connected by socket fusion, butt fusion or electrofusion – this eliminates any leak paths providing a jointing solution that will last the life of the pipe system (typically in excess of 50 / 100 years depending on system temperature / pressure information). 3. The thermal conductivity of Aquatherm PP-R is 0.15 W/mK, this offers a significantly higher degree of self-insulation compared to metal piping systems. Aquatherm also eliminates the risk of corrosion on the pipe surface from condensation occurring between the insulation and pipe wall. 4. Aquatherm pipes require very little energy to manufacture, generate virtually no pollution, contain no hazardous chemicals or VOCs are fully recyclable, making them ideal for green building initiatives (see our EPD certification for BREEAM / LEED information). 5. For buried systems, no expansion control is required. Due to the Aquatherm PP-R material properties, any expansion stress can be compensated by the material. This also provides additional strength in the event of any ground movements. Aquatherm also offers pre-fabrication to customer’s own specifications and to meet bespoke site requirements.' 8

These are just some of the benefits aquatherm can offer, click on the images below for further information. www.aquatherm-uk.com SABROE UK Principal Contact: Brian Gaughan All enquiries to: [email protected] An Introduction Statement from SABROE UK ‘SABROE is one of the world's leading suppliers of heat pump systems for commercial and industrial use. SABROE HeatPAC heat pumps are the ideal solution for effectively exploiting lowtemperature waste heat, and turning it into hot water (up to 90°C), using only a minimum of electrical energy. Our units utilise all forms of heat from:- air source, sea water, river water, hot/cold well, geothermal and waste heat from production facilities. Built and tested at our factory in Denmark, customers are encouraged to witness the performance test before delivery. This saves commissioning time on site and helps familiarise the engineers with the unit.’ www.sabroe.com 9

Get Social! Engage with industry colleagues through our social media channels. We value your social media participation through your Tweets, Facebook comments and LinkedIn discussions. 1403 Followers. 6398 Tweets. Twitter followers include many UK and international members and non-members. Retweets! Remember to use #UKDEA to promote your news! EDF Energy @edfenergy 11 Dec 2019 ...The wind is more powerful in winter. It’s not just because it’s windier the winter that we generate most of our wind energy during these months. But a cold wind is more dense, which provides more power to turn the rotor. #EDFRenewables #windfacts #windpower UponorUK @UponorUK 10 Dec 2019 We debunk some of the common myths around Q&E Shrink-Fit in our latest blog piece. Did you know, it is suitable hot water recirculating systems and can withstand up to 1300kg of force? https://uponor.co.uk/company/news/news-items-south-west/addressing-the-concerns- around-quick-and-easy-plumbing-system 10

Mibec Ltd @MibecLtd 10 Dec 2019 Order your thermal storage solutions from Mibec Trade. You'll find our buffer tanks, hot water cylinders and a range of accessories available online but if you can't find what you need, just call our team on 01782 959170 https://buff.ly/2HQWLIM Metering from DMS @dmsltd2011 27 Nov 2019 DMS #Metering Solutions are proud to have been honoured with the prestigious #Honeywell 2019 Channel Partner of the Year award for Northern Europe The UK District Energy Association Discussion Group has now been reactivated - https://www.linkedin.com/groups/3669697/ The Group is the perfect platform for members to send in posts about their existing and new products, events, awards, achievements etc for display on the discussion board. Public posts are not permitted - the public is available to make comments but the group is a ukDEA Members only board and posts will be vetted by the secretary before incorppration. The group has nearly 2000 members – the ideal opportunity to target the DE industry. Regular articles posted. We value your posts and comments. 11

BEIS News Heavy industry to cut 2 million Business, Energy and Clean Growth Minister tonnes of carbon emissions with Kwasi Kwarteng said: new tech ‘The UK is already cutting emissions faster The government is looking for most effective than any other major economy and we’re the ways to cut industrial greenhouse gas first to legislate to end our contribution to emissions, as part of £315 million investment climate change entirely. Eliminating emissions drive to decarbonise heavy industry. from industry is key to achieving this, but doing so does not have to mean The government is on the hunt for the most compromising our business success. That’s effective ways to help cut industrial why we’re bolstering our investment in clean greenhouse gas emissions, as part of a £315 growth. million investment drive in decarbonising heavy industry to help reach net zero by 2050. Ensuring energy intensive businesses are equipped with the latest low-emission The government last week set out plans to technologies will not only helps our transition drastically improve the energy efficiency of to net-zero, but will also ensure these commercial buildings, with businesses set to companies are more agile and competitive benefit by saving up to £1 billion a year on going forward - creating new skilled, well-paid their energy bills by 2030. This includes jobs.’ improving the energy performance of rented commercial buildings and setting a minimum In June the UK government became the first energy efficiency standard of Energy major economy to legislate to end its Performance Certificate (EPC) band B by contribution to climate change by 2050. 2030. Emissions from industry, currently accounting for around a quarter of all UK emissions, will The Industrial Energy Transformation Fund need to be cut to nearly zero to achieve this. (IETF) will help businesses with high power use, such as energy-intensive industries, to cut Read More Here their bills and carbon emissions through investing in efficiency measures. It will shrink https://www.gov.uk/government/news/heav industrial emissions by around 2 million tonnes y-industry-to-cut-2-million-tonnes-of- between 2028 and 2032 - the equivalent of carbon-emissions-with-new-tech taking nearly 200,000 cars off the road every year. This consultation seeks views on how the fund will work. 12

Decarbonising the UK’s industry: apply for phase 1 funding 2 phase 1 competitions for businesses to help achieve a world-first, net zero-emission industrial area by 2040. Some of the UK’s most economically active and industrially intensive areas are also some of the largest producers of carbon emissions, with around a quarter of all greenhouse gas emissions being produced by industry. Two competitions aim to help the UK achieve net zero emissions by 2050 as part of the Industrial Decarbonisation challenge, part of the government’s Industrial Strategy Challenge Fund. The Industrial Decarbonisation challenge will commit £170 million towards deploying technologies like carbon capture and hydrogen networks in industrial clusters, supporting the Industrial Clusters Mission to establish the world’s first net zero industrial cluster by 2040. Read More Here https://www.gov.uk/government/news/decarbonising-the-uks-industry-apply-for-phase-1- funding Parliament sends 30,000 In June this year, following a recommendation invitations for citizens’ assembly by independent advisors the Committee on on climate change Climate Change (CCC), the UK became the first major economy in the world to adopt a target of From Wednesday 6 November, 30,000 reaching net zero emissions by 2050. This invitation letters will be landing on doormats means that by 2050 the UK will have to reduce across the UK – including Scotland, Wales the amount of greenhouse gases it produces to and Northern Ireland – inviting people to join Climate Assembly UK. much lower level than today, and balance its remaining emissions by absorbing the same Business, Energy and Industrial Energy amount from the atmosphere. Committee Environmental Audit Committee Read More Here Housing, Communities and Local Government Committee https://www.parliament.uk/business/committ Science and Technology Committee ees/committees-a-z/commons- Transport Committee select/business-energy-industrial- strategy/news-parliament-2017/citizens- Treasury Committee assembly-climate-change-19-20/ Participants in Climate Assembly UK, which was commissioned by six cross-party House of Commons Select Committees, will look at how the UK will reach its net zero emissions climate target, and what can be done by members of the public to help reduce carbon emissions. The citizens’ assembly has been launched before the dissolution of Parliament, to ensure that the assembly’s report is available to the new Parliament as it begins its work. 13

Industrial Energy Transformation Fund The £315 million Industrial Energy Transformation Fund (IETF) will support businesses with high energy use to transition to a low carbon future. The IETF will help businesses with high energy use, such as energy intensive industries, to cut their energy bills and carbon emissions through investing in energy efficiency and low-carbon technologies. October 2019: Finalising the design of the IETF Following BEIS’s informal consultation in March 2019, we are now seeking views on the final design of the £315 million Industrial Energy Transformation Fund. This consultation will ensure the Fund helps industry to improve energy efficiency and support businesses as the UK moves to a net zero carbon emissions future. Read More Here https://www.gov.uk/guidance/industrial-energy-transformation-fund BEIS unveils ‘significant’ changes to planning regulations for energy storage The government is set to remove a significant barrier to utility-scale storage sites, proposing changes to planning regulations to allow projects over 50MW to proceed without government approval. The new proposals, unveiled recently by the Department for Business, Energy and Industrial Strategy (BEIS) follow a previous consultation in January on planning policy for storage sites. As it stands, projects over 50MW in England and 350MW in Wales must secure approval via the Nationally Significant Infrastructure Project (NSIP) process. The previous consultation proposed to keep the 50MW threshold but create a new capacity threshold for co-located storage to bypass the requirement for NSIP approval. But under the new proposals, larger storage projects could receive consent from tlocal planning authorities under the Town and Country Planning Act. Read More Here https://www.solarpowerportal.co.uk/news/beis_looks_to_make_significant_change_in_pla nning_regulations_for_energy_st 14

Heat network metering and Heat networks billing regulations: compliance and guidance Heat networks form an important part of the BEIS!has launched a public consultation government’s plan to reduce carbon and cut on a revised methodology for assessing heating bills for customers. the cost effectiveness of metering for district and communal heat networks. The Investing in heat networks closing date for responses is the 12 December 2019. Following this UK heat networks represent a significant consultation,!BEIS!intends to amend the investment opportunity across distribution, Heat Network (Metering and Billing) generation, storage, controls and customer Regulations 2014 (as amended) (‘the interface. Regulations’) and launch the associated revised cost effectiveness tool. A key challenge that has been identified to us by a Once the Regulations have been number of Local Authorities is uncertainty over amended and the revised tool published, which third party investors are actively considering heat suppliers will be obligated to carry investment in the heat network sector. To help out the cost-effectiveness assessment enable projects to contact investors we are and install meters where required within a publishing the list of investors that have contacted specified compliance period. us and provided a 1-2 page summary of how they intend to invest in the sector. The pro-forma that For companies which are governed by the has been completed by each investor is provided Financial Conduct Authority (FCA), the below. FCA has previously confirmed that, until such time, it would not be appropriate for Heat networks investor list: July to September them to impose fines or other disciplinary 2019 – measures, or take other regulatory action, in respect of a breach of the requirement If you are interested in investing in the sector then that certain heat suppliers must test please contact the Heat Network Delivery Unit, whether it is cost-effective to fit individual [email protected], with a completed 1-2 page customer heat meters in multi- investor summary pro-forma provided below. We occupancy/multi-purpose buildings or will update the list each quarter in line with the single customer buildings on district heat timing of the HNDU quarterly pipeline. networks. As such, it is not considered necessary for a heat supplier to inform the Read More Here FCA if it has been unable to meet this requirement of the Regulations. The https://www.gov.uk/government/consultations/ remaining requirements in the Regulations remain unaffected (for heat-network-metering-and-billing- example, in relation to building-level regulations-2014-proposed-amendments meters and newly constructed buildings connected to a district heating network and those buildings on district heating networks that undergo a major renovation). The consultation will also seek views on some additional areas, including where the regulations could benefit from clarification following the first five years of implementation. Read More Here https://www.gov.uk/guidance/heat- networks 15

USEFUL BEIS GUIDANCE LINKS Total energy statistics Funding for innovative smart energy systems https://www.gov.uk/government/statistics/total- energy-section-1-energy-trends Government funding for innovation in smart energy systems and technologies: UK energy sector indicators https://www.gov.uk/guidance/funding-for- https://www.gov.uk/government/collections/uk- innovative-smart-energy-systems energy-sector-indicators Energy Companies Obligation: Household energy efficiency national brokerage statistics https://www.gov.uk/guidance/energy- This series presents statistics on the Energy companies-obligation-brokerage Company Obligation (ECO) and Green Deal (GD). It incorporates changes as set out in Renewable Heat Incentive policy response to the user consultation of National overview Statistics on the Green Deal, Energy Company Obligation and Insulation statistics. The https://www.gov.uk/government/publications/re headline releases present monthly updates of newable-heat-incentive-policy-overview ECO measures and quarterly updates of in- depth ECO statistics: https://www.gov.uk/government/collections/ho usehold-energy-efficiency-national-statistics Energy trends and prices statistical release: 31 October 2019 Energy production and consumption statistics are provided in total and by fuel, and provide an analysis of the latest 3 months data compared to the same period a year earlier. Energy price statistics cover domestic price indices, prices of road fuels and petroleum products and comparisons of international road fuel prices: https://www.gov.uk/government/statistics/energy- trends-and-prices-statistical-release-31-october-2019 16

Members’ Spotlight Micronics is the longest established UK manufacturer of clamp-on heat/energy and water sub-metering solutions with over 30 years experience in the sector. It develops, manufactures and markets a wide range of portable and fixed, monitoring instruments and meters for the non-invasive measurement of heat/energy and water flow in closed pipes, which are clamp-on as opposed to conventional in-line measurement and the technology employed includes Ultrasonic, Transit Time techniques. The markets for Micronics products include retrofit and new build heat/energy and water consumption monitoring and management within commercial, public and industrial sectors for Building Services. Micronics products are designed to help engineers and plant operators find out what’s flowing where in their district or shared energy installations with minimum disruption and cost. In existing buildings with limited drawings and old pipe-work, which goes who knows where this can be a daunting task. Micronics Portaflow range of clamp-on, non-invasive instruments can offer a cost-effective solution for temporary investigations, yes that’s right clamp-on i.e. no need to drain down systems and cut into existing pipe-work! Micronics can supply or rent a simple to use portable instrument for the initial investigations i.e. to help build a picture of what’s going on. And as a next stage they can provide fixed/permanent clamp-on solutions to provide the essential ongoing measurement and monitoring for effective energy accounting. For fixed/permanent applications the Micronics range offers significant cost, installation and ongoing maintenance benefits for water, heat/energy and chilled water applications in shared and district energy installations including: • The Fixed, clamp-on range including the U1000MKII-HM & FM's offer significant installed cost savings over conventional in-line meters! • Optional Modbus RTU slave, RS485 serial and M-Bus communication • Quick set-up and flow readings without the need to drain- down and cut into existing pipe-work. • Non-invasive, so no inserts in the flow line and no pressure drop, process contamination or pipe fouling. • As the product line is non-invasive, servicing and maintenance does not require drain-down of systems, so availability is improved. 17

Many organisations have already benefited from Data Energy use Micronics heat meters track using the Micronics range in shared and district energy usage within centralised heating system. energy applications including: A Hertfordshire-based metering & billing agent for MS Maintenance Solutions Ltd’s’ use in multi-utilities used 4 Micronics U1000 heat meters management of boiler houses throughout the in the middle of 2018 to meter flow rates and UK energy within a large centralized heating system with large transmission steel pipes (DN120) to track Micronics U3000 flowmeter used to log the flow typical performance parameters. The meters coming out of the district heating systems of boiler allowed for seamless integration with conventional houses. South East-based MS Maintenance BMS systems (TREND). Solutions Ltd’s’ Maintenance Supervisor had installed a previous version of the Micronics Over 25 years, Data Energy Management Services unit at a site, which had been in place for some 15 has been delivering complete utility solutions for years previous so he had every confidence that its Managing Agents. replacement, purchased in spring 2018 would perform equally well. “The key for us was the fact Christian Koch (M.Eng.), Data Energy’s District that the U3000 is non-invasive, meaning that boiler Energy & Heat Network Engineer had used houses, which typically run 24/7 would not have to Micronics meters in the past for a similar application be shut down during installation. We have had on a different site so felt confident that the “Best some issues with the new version due to the Value” Clamp-on, Ultrasonic heat meter would be temperatures of some facilities but have found a ideal to deliver the required data. solution.” “Micronics meters had proved extremely reliable in Enerza Solutions install 95 Micronics my experience so I had no hesitation in purchasing flowmeters to provide flow measurement in another 4 units and I have not been disappointed.” Housing Association blocks Vertex Building Services collect usage data in Enerza Solutions a turnkey energy solutions prestigious, London office building provider installed 95 Micronics U1000 and U3000 flow meters in a number of housing developments A privately owned in and out of London. The non-evasive flow meters company with were installed to monitor flow / temperatures and headquarters in energy usage etc, to multiple apartment blocks Loughton, Essex and mainly at plant room level and for block level offices in the City of monitoring. London used 3 Micronics U1000 This enabled Enerza Solutions and the client to heatmeters to collect remotely monitor energy usage and efficiencies and usage data from implement the necessary improvements to the different landlord and energy network resulting in cost savings in energy tenant circuits in usage and reactive maintenance work; which in Chancery House, a 9 turn prolonged plant equipment life spans. storey, multi-tenant office building in the Ash Mirza, Systems engineer at Enerza Solutions London Borough of Sutton. selected Micronics as the supplier because he had used Micronics flow meter’s on a previous project Bill Burns, Project Director for Vertex Building and therefore knew and trusted the complete Services Ltd had used Micronics heatmeters in the range. past. “I was impressed with Micronics products and therefore had complete confidence that the U1000 “The support received from the Micronics team heatmeters would perform flawlessly and deliver the was excellent; we would without hesitation use data required for this long-standing client. Vertex their services in the future. Micronics meters won this contract following a lengthy tender process are much quicker and cheaper to install so we were doubly determined to do a perfect job because there is no need to cut into pipework and therefore needed to have that confidence.” which means that installation costs are minimal - the system does not need to be Principal contact: Tracey Rolfe drained down or pipes cut into. Flow meters are configured for pipe size and there is only Email: [email protected] nominal configuration on site. The accuracy of the data delivered has been admirable and its www.micronicsltd.co.uk operation has proved outstanding.” 18

Members’ Spotlight ukDEA Full Member: SSE Enterprise !\"#$%&''(&()%*+,+-.*&/)0&''(&()%*+,+-.*&1*/%&2*%3#+4.# SSE Enterprise is part of SSE plc, a UK based FTSE 35 company with 21,000 employees and 75 years’ experience operating in the fast-changing energy industry. Our vision is to be a leading provider of energy and related services in a low carbon world. SSE Enterprise provides innovative solutions to build, own, operate and maintain energy and communications infrastructure in the UK and Ireland. It offers a range of services providing business energy, energy management, utility networks, contracting, rail, and telecoms services to its customers. SSE Enterprise works with customers and suppliers to reduce carbon emissions and cut energy bills, helping organizations of all sizes move towards a more sustainable future. SSE Enterprise’s heat division is part of the SSE’s Distributed Energy business which brings together a range of complementary energy products and services, enabling us to offer local, integrated, energy and mobility infrastructure. With increasing concerns towards sustainability goals and with the introduction of new technologies, plus focus on user-led energy systems, the demand for solutions like these are no longer a dream but a quickly growing reality. Our vision is to be a leading provider of distributed energy and related services in a low carbon world. We offer a full range of services which contribute to development of smart cities and smart places, in both public and private sectors. Our heat division has over a decade’s experience in the UK heat networks sector. We are working with the public and private sector to invest in lower carbon heating solutions and integrated local energy systems. We currently operate 16 district heating systems across the UK which will serve over 15,000 residential customers and 500,000 sqm of commercial space (including office, retail, restaurants, leisure and council premises) when complete. We typically provide an “ESCo” solution under a concession type approach where we take risk and responsibility and provide customer care and billing for the entire heat and cooling asset. However, we are flexible in our approach and we are happy to work in partnership with our clients to oversee the delivery of successful schemes. We act as an expert partner to our clients, assisting through design, delivery, commissioning and into the operations phase. This end to end engagement and our ability to bring long term asset management and performance optimisation experience into the design and construction phase is crucial to the success of any heat networks project. It provides asset longevity, optimal performance but most importantly, minimises carbon and keeps customer bills low. Two of our projects, which have both been operational for three years, incorporate centralised ground source heat pump solutions enabling us to provide low carbon heat and cooling to connected customers. We are founder and active member of the independent customer protection scheme “Heat Trust” and we play an active role in BEIS and Scottish Government policy development work, including the development of new market regulation frameworks for the heat sector. 19

We welcome the UK Government’s decision to become the first net-zero carbon country in the world and we are ready to play our part in the key role that the decarbonisation of heat will play in achieving this target. Our vision is to become the most trusted heat networks provider in the UK and our ambition is to contribute to the transition to a low carbon society by providing high quality, reliable and affordable heat and cooling networks. Please talk to us about your heat or distributed energy project! The Team 5#06&7-%%/3/6&8&'*9%#+&:-+*9%#+&;#+&1*/%&2*%3#+4.# 2-9<#=/.&>-))-%%&8&?*/0&7+#@*9%&:*A*=#,B*)%&>/)/C*+ Commercial Project Development Managers – Jennifer Belk and Alex Fox Project Development Managers – Neil Turner, Charlie Drysdale and Ayub Pathan Principal contact: Giles Newton Email: [email protected] www.sse.com 20

Members’ Product Spotlight Despite significant technological advances in Peter Barrett, CEO of Hydrosphere said “We were building construction, frustrated with traditional methods of flushing and the method by which the wasteful and highly polluting process that puts new heating and large volumes of chemicals back into our drinking cooling systems are water system. In this day and age we feel it is not flushed and cleaned only unacceptable, but completely irresponsible to pre-commission, has damage our environment and waste millions remained largely of litres of water a year using traditional static. methods”. He went on that “not only are we doing our bit for the future of the planet, but projects can Sir James Bevan, be commissioned earlier because our method is head of the Environment Agency, has warned that faster, automated and more efficient. The results England will not have enough water to meet surpass industry guidelines adding years to a demand within 25 years and wants to see wasting system’s life with minimal maintenance”. Projects water become “as socially unacceptable as blowing which have used Hydrosphere include The Shard, smoke in the face of a baby”. As a resource heavy Euro Tunnel, the Olympic village and Heathrow T2. industry, UK construction can make a massive impact on reducing the amount of water that is Dennis King, Project Manager currently used on site. at Energetik, also commented “one of our key drivers is to The good news, however, is the tide is slowly ensure that the life turning. expectancy of heat networks are achieved and water quality is paramount to More and more developers and construction this. companies are specifying new eco- friendly processes. Hydrosphere Innovations Ltd are the When the Hydrosphere process has been used, pioneers in this field and are revolutionising closed not only have we seen water consumption reduced system pre-commission cleaning. Unlike traditional during the construction phases of projects, we flushing and cleaning of new projects where have been able to consistently achieve high water thousands of litres of polluted water and aggressive quality standards from the outset, which provides chemicals are literally flushed down the drain, the an excellent platform to enable these high water only water Hydrosphere uses is pre-treated water quality standards to be maintained throughout the to fill the system which is then circulated at velocity life of the heat networks giving them a greater and any nasties or debris are removed. It chance in achieving or even exceeding their life comprises two concepts which, when combined, expectancy”. work symbiotically to produce superior quality system water and long-lasting protection of brand BSRIA (Building Services new installations. Research and Information Association) are in the process All this whilst discharging no water to drain and of compiling an update completing projects in less time than all other to their BG 29 guide and will be methods for pre-commission cleaning systems. specifically highlighting the Hydrosphere process. # Principal contact: Peter Barrett Email: [email protected] www.hydrosphere-uk.com 21

Members’ Product Spotlight Aichi Tokei AS Series Flowmeter - save with convenient facility management MWA are the sole UK distributor of Aichi Tokei Denki’s AS Series Ultrasonic Flowmeter for Fuel Gas – The focus of this month’s product spotlight. In fact, MWA are sole UK distributors for all meters manufactured by the Japanese R&D-oriented enterprise. Aichi Tokei Denki has a century-long history and tradition for pushing technological boundaries with truly unique solutions. We’ll be going into specific detail on the AS Series’ wide rangeability, zero pressure loss and how it can contribute to cost saving and convenient facility management. Watch our product spotlight video below and continue reading for a variety of other features and benefits, all of which could be crucial in informing a decision on whether this meter is the right meter for your establishment. AS SERIES – WIDE RANGEABILITY Even when the flow rate is low, extremely accurate measurements are possible thanks to a wide rangeability of 1:400. The AS Series Ultrasonic Flowmeter will measure gas consumption at high sensitivity and precision thanks to its built-in normal conversion function. The gas consumption flow rate, temperature, and pressure are converted into the normal state, allowing for more detailed energy management. AS SERIES – ZERO PRESSURE LOSS The pressure shortage risk associated with similar meters is combatted through ultrasonic, which is used for the measurement principle. Without any obstacle inside the measurement tube, pressure loss becomes zero and durability increases.Two ultrasonic sensors are placed within the tube to measure the time for a sound wave to travel between them. This time difference is converted into the flow rate, a technique called ‘propagation time difference’ which is excellent in reproducibility. Furthermore, thanks to the benefits of zero pressure loss, the AS Series Ultrasonic Flowmeter is also ideal for use in systems with long pipe-runs, often found in new buildings, domestic installations, and commercial premises. 22

COST SAVING AND CONVENIENT FACILITY MANAGEMENT Since the AS Series Ultrasonic Flowmeter covers a wider range from small to large flow rates, it contributes to cost saving and convenient facility management. This meter runs with a built-in lithium battery and therefore, electric construction becomes unnecessary. The battery is built to sustain continued operation for years. Remote measurement capability only adds to the convenience that this meter harnesses for its users. RS485 output in addition to unit pulses allows for remote indication and energy management. The AS Series’ non-moving parts contribute to the durability and greater maintainability of the meter, not to mention eliminating the possibility of having to repair parts in the future. Finally, the easy-read indicator which can be rotated 90° will display the accumulated and momentary flow rates at the same time and with its lightweight and compact features, it enables easy installation and needs less space. MWA is the sole UK distributor for Aichi Tokei Denki, with the AS Series Ultrasonic Flowmeter ready for speedy delivery. Call 0121 327 7771 or use our enquiry form. Watch The Video Here Principal contact: Martin Wardell Email: [email protected] www.mwatechnology.com 23

Members’ Job Vacancies Key Account Manager / Business Development Manager Brief Description/Duties of Position • Meeting or exceeding agreed monthly sales budget/targets. • The identification and active pursuit of new business opportunities for the Company’s products. and services; either within the Region, of part of the Region as determined by the Regional Sales Manager (60% minimum). • When required, to liaise with and assist the Marketing Executive in the planning and execution of both marketing, promotional and product/service launch activities with in the Region. • The identification of potential market opportunities for the Company and the reporting of these opportunities to the Regional Sales Manager and the Marketing Executive. • The identification of new or existing technologies which may be of interest to the Company and the reporting of these to the Regional Sales Manager and the Marketing Executive. • the effective use of Company customer and prospective customer contact activities tools and systems, to include accurate and on-time forecasting/reporting. • Such other activities which may reasonably be requested of a Business Development Manager by the appropriate Regional Sales Manager or an executive Director of the Company. Location of Position: London / South East Approximate Salary Range: £35,000 to £50,000 based on experience + Bonus + Commission + benefits (car, laptop, phone etc). Deadline for Applications: 30th December 2019. Contact Details for CV: [email protected] www.hydro-x.co.uk # 24

Role: Technical Support Engineer Altecnic Ltd are looking for an ambitious Technical Support Engineer with an understanding of plumbing and heating products to join the Technical team at our plumbing and heating business. The ideal candidate will have a minimum of 3 years’ experience working in either the domestic or commercial HVAC sector. Full training will be provided to allow you to quickly utilise your existing product knowledge. This is a great opportunity to be part of a growing organisation, financially strong and ambitious. This role will enable you to achieve success in a business where individual contribution is valued, and a rewarding career is a reality. The role will include: • To support the business with dealing with customer enquiries helping to resolve issues promptly and efficiently by giving technical advice and support on aspects of installation, servicing, commissioning and general product information. • To respond to queries generated by internal and external sales departments from customers providing supporting knowledge of working parts and products. • To support the business by monitoring and maintaining technical information used by the business. • To carry out competitor and market analysis giving comprehensive feedback to the business, including features and benefits of Altecnic products against others on the market. • Provide installation knowledge and support for contractors. Location: Stafford ST16 Salary Range: 32-35K dependent on experience plus benefits Deadline for Applications – 31st December 2019 Send C.V to [email protected] www.altecnic.co.uk 25

Buried Network Design Engineer, Greater London. ENGIE are recruiting for a Buried Network Design Engineer to be based at Kings Yard, 5 Clarnico Lane, Queen Elizabeth Park, London, E15 2HG. This is a permanent full- time role working 37.5 hours per week. On offer is a competitive salary and benefits package. General Overview: A Buried Networks Design Engineer is sought to join the Design Team of ENGIE Urban Energy. The team undertakes the design of district heating and cooling networks throughout the UK. The team has the capability to design energy centres, pre-insulated buried piping networks and plant room heat exchanger assemblies. The Buried Networks Design Engineer position is characterised by the ownership of projects to develop district networks. The projects include multi-disciplinary design coordination with both internal and external stakeholders. Key Responsibilities: • The design of pre-insulated buried network piping systems. • The use of 2D and 3D CAD packages in the creation of engineering schematic and Layout drawings. • The production of survey scopes, specifications, bills of materials and installation contractor scopes. • Technical support and design coordination with internal and external stakeholders, including business development and project managers, contractors, clients and design consultants. • Attendance at project sites for surveys, reviews, key delivery milestones and commissioning. Read More Here: https://jobs.engie.com/jobs/buried-network-design- engineer-144707 Senior Buried Network Design Engineer, Greater London. ENGIE are recruiting for a Senior Buried Network Design Engineer to be based at Kings Yard, 5 Clarnico Lane, Queen Elizabeth Park, London, E15 2HG. This is a permanent full- time role working 37.5 hours per week. On offer is a competitive salary and benefits package. General Overview: A Senior Buried Networks Design Engineer is sought to join the Design Team of ENGIE Urban Energy. The team undertakes the design of district heating and cooling networks throughout the UK. The team has the capability to design energy centres, pre-insulated buried piping networks and plant room heat exchanger assemblies. The Senior Buried Networks Design Engineer position is characterised by the ownership of projects to develop district networks, including multi-disciplinary design coordination with both internal and external stakeholders. The role includes the technical oversight and management responsibility for a small number of Mechanical and Buried Network Design engineers. 26













Heat is on for £1bn flagship life Construction has started science campus on site for the carpark. The flue for the energy Work is to begin on installing a unique centre will be heating system to fuel what will become constructed in January one of the world’s leading research hubs in 2020 with it coming life sciences and medicine. online in summer 2020, and the carpark will be Liverpool’s £1 billion Paddington Village completed in January development, the UK’s largest new health and 2021. science campus currently under construction, is to utilise an underground heating network Michael Cooke, Regional Director for Vital that will help cut the city’s carbon footprint. Energi, explains: “This is a truly exciting project because, not only do we have the The new energy scheme, being delivered by opportunity to create an efficient and robust sustainable energy experts Vital Energi, will energy scheme and heat network in the heart serve the entire Paddington Village site, which of Liverpool’s newest major development, we sits within the Knowledge Quarter Liverpool are also able to work with the city council, (KQ Liverpool) Mayor Development Zone Chamber of Commerce, Liverpool in Work and including the new northern home for the Royal other organisations to deliver some truly College of Physicians. valuable social value measures through the Fair City initiative. The energy centre will be in the ground floor of the new 14-storey carpark, situated off Elm “By working together we have been able to Grove, and will house a 1,195 kWh combined create long-term, permanent jobs, heat and power engine which will provide both apprenticeships, work placements and training electricity and heat. The heat generated will opportunities whilst ensuring that the majority be distributed throughout the 30-acre site via a of money spent and the majority of labour network of buried district heating pipework. hired will come from the immediate Liverpool Morgan Sindall Construction is the main area. We are delighted to have been chosen contractor for both the carpark and the energy to help deliver this project and look forward to centre. starting on site.” As part of the innovative underground project, Vital Energi have released a range of 3D Liverpool City Council’s Fair City initiative will images designed to show the public how the ensure it is also used to deliver a range of energy centre section of the development will social value commitments designed to benefit be delivered. the people of Liverpool. Richard Potts, Area Director for Morgan Mayor of Liverpool, Joe Anderson said: Sindall Construction commented, “Low “Paddington Village is one of Europe’s major carbon is the future and progressive cities all life sciences development sites and its over the world are getting to grips with how it’s construction is a reflection of our ambition to delivered. We are excited to be part of the create something unique - be it RCP’s project team ensuring that Paddington Village pioneering Spine scheme to this new energy has superb sustainability credentials and this centre. Liverpool also recently declared a is another welcome milestone on a scheme we climate change emergency and as a city are all immensely proud to be delivering.” council we are doing everything in our power to cut our carbon footprint. I’m delighted this Principal contact: Brendan Clancy energy centre is being built. It sends out a signal the city means business on making a Email: [email protected] difference both to our economy and our environment.” www.vitalenergi.co.uk # 33

DMS – Winner of the 2019 Honeywell Channel Partner of the Year award for Northern Europe DMS Metering Solutions are proud to have been honoured with the prestigious Honeywell 2019 Channel Partner of the Year award for Northern Europe. DMS have a long-standing business relationship with Honeywell, dating back over 15 years, covering multiple product ranges and solutions from Honeywell’s extensive portfolio.DMS’s unique combination of applicational knowledge, a Nationwide stock-based distribution capability and both remote and onsite technical support, training and commissioning services have been instrumental in developing this relationship. DMS are an independent supplier of Gas, Heat, Water & specialist metering and control solutions, principally operating within the Building Services, Utility, Sub Distribution and OEM /Renewables market sectors, with a proven track record for excellent customer service and support spanning over 20 years. Honeywell’s impressive product portfolio incorporates several historically well-known trading names, including Elster, Jeavons, Instromet, Kent Meters, and Bryan Donkin. With all these product ranges being available from and supported by DMS in the UK.To view the full Honeywell range please click here Principal contact: Heidi Scannell Email: [email protected] Introduction to ukDEA and OPSS The OPSS, The Office for Product Safety and Standards, BEIS, have been in touch and want our members and those they are connected with to be aware of the obligations under the Heat Network (Metering and Billing) Regulations 2014. In particular the obligation to renotify as we are now at the end of the first four year period which is by the end of December 2019 for all heat networks. Heat networks sector in the UK is regulated by the Heat Network (Metering and Billing) Regulations 2014 (subsequently amended in 2015). The Regulations are enforced by Office for Product Safety and Standards (OPSS). Under Regulation 3, heat suppliers have an obligation to notify the heat networks they operate on or before the first date of operation (Regulation 3(2)), and then re-notify them every 4 years (Regulation 3(3)). For heat networks that were in operation at the time when the Regulations came into force, the deadline to notify was 31 December 2015, and the obligation to renotify those networks is on or before 31 December 2019. We would like to remind the operators of those heat networks that the renotification deadline is fast approaching. As a part of the notification process, the suppliers need to provide certain information about the network, such as address of the heat network address, capacity, generation, number of buildings and final customers etc. To facilitate this, OPSS has developed a Notifications template to ensure that all required information is adequately captured. If you are unsure whether the network you operate falls in the scope of the Regulations, you can consult the Scope Guidance and Frequently Asked Questions available on the OPSS Heat Networks page, or alternatively contact the OPSS Heat networks team at [email protected] OPSS would also urge heat suppliers who operate heat networks that may be in scope, and have not previously notified OPSS of their existence, to do that as soon as possible. 34

Geospatial Commission Plans to Map all UK Buried Infrastructure As you will be aware from emails we were recently contacted by one of our members who was having difficulty obtaining Section 50 Licences as their networks were not being developed by a statutory utility. They identified that the solution they had found was to offer to register their networks with Linesearch Before U Dig to ensure that their networks were on some form of nationally accessible database. Interestingly and directly connected to this issue, we have over the last few days been contacted by the Governments Geospatial Commission at the request of the BEIS Heat Team. You may have read in the press that they have been charged with looking into the creation of a database of underground infrastructure in the same way the Land Registry contains a data base of buildings above ground. Sadly, as is typical when people are considering utilities, heat networks have come slightly late to the party, and as you will see from the attached presentation they have not to date looked at heat networks. However, their view has changed significantly since the Chairman had a long telephone call with Holger Kesslar from the Commission, who was very keen to understand more about heat networks. He now grasps their importance, the expansion we expect to see and the relative size of our infrastructure compared to buried networks. In summary he is very keen to engage with members for two reasons: 1. Explain in more detail what they are planning, as set out in the attached letter and presentation and gain members views on this initiative 2. Make contact specifically with members who have schemes or are involved with schemes in the two pilot areas as set out in the attached presentation. We would therefore be pleased to hear from members who would be interested in joining a conference call or webinar, as suggested by Holger, to find out more this initiative, and/or most importantly whether there are members who do wish to become involved with the Geospatial Commissions pilot schemes as a result of networks that they are involved within in these two geographical areas. We really hope that you will be able to engage with this exciting initiative and we look forward to your response. 35

Open Consultations SAP10 and Response to Future Homes Standard Consultation. As you will be aware we have been discussing with BEIS the planned changes to SAP for some time. You will have seen the document that we sent to BEIS (as attached) “ukDEA key asks of government SAP10 V1 31.7.19 For Issue to BEIS” . In late October BEIS responded with the “ukDEA response Oct 19” document as detailed here. In parallel the Future Homes Standard Consultation was released and members have been asking how we plan to respond. The Chairman’s view is that we must be very focused in our response on the impact on heat networks. With the assistance of Tim Starley-Grainger from LB Haringey (a big thank you to Tim !) the Chairman prepared the draft response – download here to Emma Floyd “ukDEA Draft Response to BEIS on SAP 11.11.19”. The tables in this document come from the spreadsheet – download here The Chairman’s view was that he wanted to “test the water” with BEIS before formally submitting this and also discuss with BEIS how it was felt that we should respond as an association to the FRS Consultation. Unfortunately due to Emma’s ill health the November meeting with BEIS was postponed and could only be held today. Whilst we are still in purdah and Emma could not comment on the specific numbers she felt that the points that we were making were clear, very important and encouraged us to agree the letter with the members and formalise this document and issue. We also discussed our response to the FRS Consultation and she agreed that making a focused response on heat networks makes a lot of sense (Question 25) and to append this letter (once agreed) to the ukDEA Consultation response. Therefore to be clear we now wish to finalise this letter and formally issue it to Emma Floyd to then be able to append this to our FRS Consultation response which will predominantly respond to Qu 25 and refer other relevant questions to that response. It was also made clear to the Chairman that not only was this approach welcomed, but that once the letter is agreed by members, that as many members as possible make their own submission to MHCLG in response to the consultation and where possible reference and endorse the concepts in the ukDEA letter. Therefore our key ask to you now is to review the document here “ukDEA Draft Response to BEIS on SAP 11.11.19” and provide comments in change mark form by the 6th January to allow the Chairman time to consider these proposed amends and discuss with members and then issue the letter and attach to our response to the FRS Consultation on the 9th January. We will then issue this final letter to members as soon as possible after the 6th and ask members to endorse it in their own direct responses. We hope that this makes sense, but any questions please make contact. We look forward to your response. We have directly received an important notification from Peter Rankin, Ministry of Housing, Communities and Local Government. We would like to share it with the membership: 'We are aware that some functional issues with the cSAP software linked to the Future Homes Standard consultation (launched October 2019) may have caused problems for colleagues who wished to respond early to the consultation. The issues were resolved last month and a notice explaining the functional improvement has been posted on the BRE website. In order to allow respondents a fuller opportunity to respond to the consultation, we are extending the closing date for responses to 11.45pm on Friday, 7 February 2020.' 36

Consultation Response Heat Network (Metering and Billing) Regulations 2014: proposed amendments Further to the recent workshop at BEIS the Chairman has prepared the draft ukDEA response to the Heat Network (Metering and Billing) Regulations 2014 consultation – download here. This is to be submitted on or before the 9th January. Therefore can members please propose any additions or modifications to this draft response in change mark format by the 6th January 2020 – [email protected] This will allow the Chairman to consolidate these comments and submit on the 9th. Technical Appendix to Heat Networks Metering and Billing Consultation In response to requests from stakeholders, the Heat Networks Policy team, BEIS, are publishing a technical appendix to the consultation on the proposed amendments to the Heat Network (Metering and Billing) Regulations 2014. This appendix contains an extract from the draft user guide which provides additional technical information about the draft metering cost-effectiveness assessment tool to support the high-level description of the amended methodology described in the consultation. The appendix should be read together with the consultation. Please be aware that the tool itself is currently being tested and may be amended following the consultation. The Heat Networks Policy team would be grateful if you could integrate your comments on the tool in your response to the consultation and thank everyone who has already responded. If you wish to make further comments following this update, please email them directly to the team's mailbox ([email protected]). Please see https://www.gov.uk/government/consultations/heat-network-metering-and-billing- regulations-2014-proposed-amendments for the consultation and added appendix. The consultation closes 9 January 2020. 37

Consultation Outcome Energy Company Obligation (ECO3): improving consumer protection Detail of outcome The government’s response to the ECO3: improving consumer protection consultation sets out changes to the policy of the ECO3 scheme which runs until March 2022. Changes include: • incorporating the TrustMark government-endorsed quality scheme into ECO3 • reduced uplift from the current 400%, to 200% for replacements of broken boilers delivered outside of the broken heating system cap • technical changes to the way First Time Central Heating is treated under the scheme. Detail of feedback received This consultation received 110 responses. The majority of the responses were supportive of most of the proposals. Stakeholders largely agreed with incorporating the TrustMark government-endorsed quality scheme into ECO3.Read More Here https://www.gov.uk/government/consultations/energy-company-obligation-eco3-improving- consumer-protection 38

Heat Networks Skill Review Heat Networks Skills Review Open future opportunity – requires registration on DPS Research Market place The purpose of this work is to help Government understand the ability of the heat networks supply chain to keep pace with anticipated growth in future demand. The project will analyse required skills in the heat networks sector, assess current and future skills gaps and needs due to the low carbon transition to 2050 and market growth being driven by existing low carbon heating subsidy programmes. The project will review learnings from other sectors, consider qualification standards and will set out the practical steps needed to develop both capability and capacity in the heat networks supply chain. The project will consider synergies with related industries and the possibility to build on the UK's current expertise in the transition away from fossil fuel heating to improve the supply chain's ability to drive a self-sustaining market. Link: https://www.contractsfinder.service.gov.uk/Notice/69e28f14-94b0-4baf-bdb6- 680fc6923179?p=@QxUlRRPT0=NjJNT08=UF European Investment Bank EU Bank launches ambitious new climate strategy and Energy Lending Policy The U Bank will end financing for fossil fuel energy projects from the end of 2021. Future financing will accelerate clean energy innovation, energy efficiency and renewables • EIB Group financing will unlock EUR 1 trillion of climate action and environmental sustainable investment in the decade to 2030 • EIB Group will align all financing activities with the goals of the Paris Agreement from the end of 2020. The board of the European Investment Bank (EIB) today agreed a new energy lending policy and confirmed the • EIB’s increased ambition in climate action and environmental sustainability. “Climate is the top issue on the political agenda of our time,” said EIB President Werner Hoyer. “Scientists estimate that we are currently heading for 3-4°C of temperature increase by the end of the century. If that happens, large portions of our planet will become uninhabitable, with disastrous consequences for people around the world. The EU bank has been Europe’s climate bank for many years. Today it has decided to make a quantum leap in its ambition. We will stop financing fossil fuels and we will launch the most ambitious climate investment strategy of any public financial institution anywhere.” Stressing the need for cooperation, he added: “I would like to thank the shareholders of the bank, the EU Member States, for their cooperation over the past months. We look forward to working closely with them and with the EU Council of Ministers, with the European Commission, the European Parliament, international and financial institutions and, crucially, with the private sector, to support a climate neutral European economy by 2050.” 39

Webinar Recordings We are pleased to distribute links to the recordings of the recent DBDH's (Danish Board of District Heating's ) last two webinars (in English): \"Renewable heat in Odense - an innovative lesson how to recycle renewable energy with heat pumps for district heating.\" LINK HERE \"Digitalisation of District Heating – challenges and opportunities for the utility sector.\" LINK HERE Stay updated here Waste Heat At the Chairman’s meeting with BEIS on the 12th December, Emma Floyd confirmed that although there has been little in the public domain on the future of heat networks over the last couple of months due to the General Election, the Government has previously stated that it plans to produce a Heat RoadMap in 2020. Emma has confirmed that this will focus on how further decarbonisation of heat will take place and what role heat networks will have in this. BEIS believe that waste heat should play a larger role in heat networks moving forward and Emma has asked us to contact members to ask for their ideas how waste heat could be utilised in heat networks, what are the challenges and what are the solutions. You can either send these in via the ukDEA or directly to Emma on [email protected] 40

UK Power Networks Generation Connections (G98 / G99) Reminder As more than six months have passed since the introduction of new Engineering Recommendations G98 and G99 for generation connections we thought it would be useful to provide a few reminders. The purpose of this document This document aims to provide a reminder to customers of their responsibilities and the timing associated with the completion of the necessary documents not just the Standard Application Form (SAF) and the Power Generating Module Document (PGMD). We provide • A reminder of G98 and G99 • A summary of our experience to date • A matrix (below) which gives an indication of what forms should be completed for each Generator type (A-D) and when • Flow charts to supplement the matrix • A reminder to inflight projects • Useful links including an update to our FAQs What are G98 and G99? G98 and G99 are new Engineering Recommendations (ERECs) for the connection of generation to electricity distribution networks that apply to any generator connected to the network after 27 April 2019. • G98 replaced the G83 for small scale connections <16A (3.68kW) • G99 replaced the G59 for connections larger than 3.68kW What has been our experience so far? Given the significant change as a result of the new ERECs we committed to provide additional help during the initial six months by way of assisting with the completion of the new forms and by providing feedback when appropriate. This has involved considerable effort and has regrettably generated a small number of complaints typically revolving around the premise/belief that UK Power Networks are responsible for compliance with the new ERECs when in fact it is the responsibility of the Generator/customer. Compliance extends to ensuring we have all the relevant forms in advance of our attendance at witness testing being booked. To help further we have created a series of flowcharts and a matrix indicating clearly which documents are required and when. Both of these can be found below. Flow charts We have produced flowcharts to show the steps that need to be taken for the Type A, B, C and D G99 applications. 41

The above is provide as guide only. It is the Generators responsibility to ensure the correct forms are submitted fully completed. The submission of incomplete forms may delay any part of the connection process from provision of a Connection Offer to Energisation of the connection Useful Links Further information including those mentioned above can be found on the UK Power Networks Distributed Energy Resources website https://www.ukpowernetworks.co.uk/electricity/distribution-energy-resources#G98 If you have any further questions on G98 and G99, please email the email address [email protected] 42

The International Energy Agency The International Energy Agency's Technology By completing a brief online survey, interested Collaboration Programme on District Heating & parties have the opportunity to provide Cooling (IEA-DHC) is an international research valuable input to inform the discussions of the programme with 13 participant countries. The Global Commission as it works to develop its UK is a member, supported by BEIS. final recommendations. IEA-DHC has approved the preparation of a “The benefits of energy efficiency are new project: Integration of Renewable indisputable, but more action is needed to Energy Sources into existing District realise its full potential. These discussions are Heating and Cooling Systems (RES the perfect opportunity to identify how to DHC). This is a 'task shared project' enabling accelerate progress,” said Dr Brian existing and new national R&D projects to be Motherway, the IEA’s Head of Energy connected via an international platform within Efficiency Division. the IEA-DHC programme. More information about current and previous Energy efficiency has tremendous potential to projects and also the new Call for Proposals help the world meet international climate goals from IEA-DHC for the 2020-2023 cost-shared while supporting energy security and economic Annex XIII can be found by registering at the growth. However, policy implementation has IEA-DHC website www.iea-dhc.org stalled, and countries are failing to take full advantage of these benefits. Energy intensity – Should you have any questions relating to this, the amount of energy required to produce one please contact [email protected] unit of global gross domestic product – is not improving quickly enough to offset strong Have your say on energy efficiency energy demand and CO2 emissions growth. The recommendations of the Global The International Energy Agency is inviting Commission will be focused on reversing this input from people around the world on ways to trend. jump-start progress on energy efficiency. The contributions will help to inform the work of the Read More Here Global Commission for Urgent Action on Energy Efficiency. https://www.iea.org/news/have-your-say-on- Established earlier this year, the Global energy-efficiency Commission now has 21 members, including national leaders, current and former ministers, top business executives and global thought leaders. It will produce recommendations for new and stronger policy action by governments. 43

The EU Agency for the Cooperation of Energy Regulators (ACER) The EU Agency for the Cooperation of Energy Regulators (ACER) has published the Electricity Wholesale Markets Volume of the 2018 Market Monitoring Report. Among the main findings, the Report notes that the margin available for cross-zonal trade was on many bidding-zone borders much lower than the minimum 70% target established by the Clean Energy Package. Important efforts to meet this minimum target that will apply from 1 January 2020 are needed. The Report also shows that the average day-ahead electricity prices increased in all European bidding-zones in 2018, with the exception of the Romanian market. Significant average price differentials were also observed on several European borders (more than 10 euros/MWh in nine borders). This finding suggests that there is room for further price convergence, provided it is cost-efficient. Market coupling contributed to maintaining a high level of efficiency in the usage of available cross-border capacity in the day-ahead timeframe, reaching 87% in 2018. However, a few issues still need to be tackled to finalise the completion of single day-ahead coupling; namely the implementation of a flow-based market coupling for the whole of the Core region, and the integration of the various market coupling projects still coexisting in Europe. Several Member States also continue to have in place, or plan to establish, a capacity mechanism, whereas a number of them do not seem to face an adequacy problem in either 2020 or 2025. The related costs in 2018 reached 2.5 billion euros in Europe and are foreseen to increase in the coming years. You can find all volumes of the latest edition here Innovate UK Innovate UK to fund pioneering energy projects Innovate UK has teamed up with ENGIE to seek out and fund innovative projects that can speed up the development of a sustainable energy transition. Innovate UK, part of UK Research and Innovation, has teamed up with energy and services firm ENGIE to support projects working on the transition to clean energy. The £4 million competition will fund innovative projects that decarbonise, digitise and decentralise (find ways to generate power off the main grid) energy, and help achieve a sustainable transition to cleaner energy. Successful projects will receive a combination of government grants from Innovate UK, and private investment from ENGIE. For the first time in an Innovate UK programme, the private funding will be from overseas.The competition aims to allow organisations to form investment partnerships at an early stage. To do this, ENGIE and Innovate UK are bringing together: • Innovate UK’s expertise in identifying promising innovations and using funding to materially change their risk profile • ENGIE’s expertise in identifying commercial and customer focused opportunities that are most likely to grow and make the best use of extra investment finance Read more here: https://www.gov.uk/government/news/engie-partners-with-innovate-uk-to-fund- pioneering-energy-projects 44

The Scottish Government Social housing to be more energy efficient Tenants across Scotland to benefit from £3 million in funding.People who rent their homes will get warmer and cheaper-to-heat housing as a result of major Scottish Government investment.Technology like underfloor heating, ground source heat pumps and solar panels will be installed to reduce the carbon footprint of almost 900 social rented properties.Grants to pay for the work will be given to eleven social landlords through a £3 million second round of the Decarbonisation Fund. Housing Minister Kevin Stewart visited Castle Rock Edinvar Housing Association in Edinburgh to see battery storage and solar panels which will be installed in 80 homes with the new funding. He said: “A warm, energy efficient home means cheaper energy bills for tenants as well as reducing greenhouse gas emissions. “Last year 15,000 Scottish households saved more than £4.6 million on fuel bills as a result of energy efficiency measures installed through the Scottish Government’s schemes, such as insulation, double glazing and heating controls. “This funding will support our work to remove poor energy efficiency as a driver of fuel poverty, as well as helping meet our climate change targets. “Social landlords are making excellent progress towards achieving the first Energy Efficiency Standard Social Standard for Housing, reporting that 85% of social rented homes already meet the standard for 2020, with a new standard confirmed for 2032. “This funding will help further landlords’ progress, encouraging innovative approaches and ideas.” Ben Dyer, Technology and Innovation Lead at Castle Rock Edinvar, said: “Funds such as this offer social landlords a great opportunity to test new concepts and share the experience to the benefit of the environment and customers. Castle Rock Edinvar will continue to push for lower carbon solutions that improve living conditions for our customers and to promote environmental awareness. We are excited by the prospect of fitting existing housing stock with new technology that has the potential to have such a positive impact.” Read More Here: https://www.gov.scot/news/social-housing-to-be-more-energy-efficient/ 45

12 Ofgem News How Ofgem’s Innovation Link supports low carbon projects Innovation Link three years on Almost three years since Ofgem set up the Innovation Link, the team has helped over 200 innovators looking to launch new ppPpHroleoroteondwnutjyteciaotOcslf,tttfosshgeeherevinmlipcneo’ussvsaoIdtrnoebrcnsuaostrhibvneoeayns’tivssieoemenionndgLtehailegsn.eskMdmawsanriuttyhepsotptef,ntolhoderwntsesoesthtltooacovwhesattvcwheeaaayrn.bon obvious background in energy and, often, their first challenge is grappling with what can be quite complicated rules and regulations. So Ofgem help them to understand how the market works and what the rules might mean for them. Others might already have detailed knowledge of the sector so Ofgem can help by providing more specific support on the regulatory rules. This has given invaluable insights into a range of innovations across a wide spectrum of business models. These insights are helping to inform Ofgem's thinking, particularly on the future design of the energy market. Supporting low-carbon innovation A great example of this is Ripple Energy. Their innovation is to give consumers a simple and affordable way to own part of a wind farm by establishing a Community Benefit Society – allowing members to jointly fund the setup of an onshore windfarm. Ofgem worked with Ripple Energy to help them understand how the rules may apply to their idea and navigate different regulatory options open to them. Following Ofgem's support, Ripple Energy launched a crowdfunding campaign in April to raise £750,000 in order to launch their first pilot project. Having raised more than their target, they’re now aiming to launch their pilot wind farm project at the beginning of 2020, with a full-scale wind farm to follow. This is just one example of the innovators Ofgem has supported. The work Ofgem does with innovators like Ripple Energy is extremely important and this type of bilateral, confidential guidance is a cornerstone of the Innovation Link. Through these interactions and Ofgem's regulatory sandbox they’ve learnt that many firms just want to understand the rules so they can launch their business as soon as possible. With innovation underpinning some of Ofgem's key priorities as a regulator they’ve been thinking about ways to assist more innovators and in a more efficient way. New service Ofgem want to take a more active role in opening up its services and knowledge as widely as possible. They have a lot of useful information – proactively passing this on could add value to innovators and reach more of them than they currently do. Ofgem launched this service by publishing guidance on selling electricity to electric vehicle users. This guidance aims to answer questions Ofgem have received numerous times as a team and they hope it will be particularly useful to organisations such as chargepoint operators and local authorities. By explaining some of the main rules that apply, Ofgem hopes they can stimulate further interest and innovation in this exciting area and support the take up of electric vehicles more generally. Ofgem intend to follow this up with guidance in other areas. How to get in touch Ofgem want innovators to keep talking to them if they need help and are also keen to hear any feedback on the new guidance paper and what else would be useful. 46

Ofgem News Ofgem publishes ECO3 District Innovation Link Ofgem has launched heating systems (DHS) factsheet a dedicated service to support and summary of proposal (SoP) businesses looking to offer innovative products and services to Launching Ofgem’s Diversity & the energy sector. Inclusion Strategy – read more here: As the energy system transforms with new technology, the number of new https://www.ofgem.gov.uk/publicatio players in the market is set to ns-and-updates/ofgem-diversity- increase dramatically. and-inclusion-strategy These people or organisations may Infographic: Promoting a not be familiar with energy market sustainable energy future rules or where to go for help. Ofgem’s Innovation Link will provide https://www.ofgem.gov.uk/publicatio fast, frank feedback to innovators ns-and-updates/infographic- and help them navigate the promoting-sustainable-energy- regulatory framework. future The service will enable innovators to Energy security: make more informed choices when developing their products, services https://www.ofgem.gov.uk/publicatio and business models. ns-and-updates/infographic-energy- security It is available to anyone with an innovative business proposition that Infographic: The Energy network has the potential to benefit consumers. https://www.ofgem.gov.uk/consume The Innovation Link will also bring rs/energy-explained-videos-and- forward proposals in spring 2017 for infographics/infographics a regulatory sandbox. These will let innovators trial promising new products or services in a controlled regulatory environment, while ensuring that the interests of customers are met. This will help innovators decide if their idea is viable 47

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