Louise Kingham

With new legislation on the way, Louise Kingham, Chief Executive of the Energy Institute, explains why it’s important to get to grips with the new energy management standard

From wide-screen plasma TVs to regular international air travel, we are living in an increasingly energy intensive society. The UK government has promised to become ‘the greenest Government ever’, recently accepting the recommendations of the Fourth Carbon Budget targets: a 50% reduction in carbon emissions by 2025 with a host of policy measures to make this happen. The Electricity Market Reform and Carbon Floor Price consultations, undertaken in the first quarter of 2011, signal the beginning of changes to the energy markets.

The low carbon opportunity is defined by two complementary trends: removing carbon from energy generation and incentivising its replacement by low carbon technologies; and encouraging the use of energy efficiency measures in order to use less energy in the first place.

What is abundantly clear is that the energy industry is embarking upon a path of substantial upheaval, change and growth. Energy is set to become more expensive. Electricity demand will potentially double by 2050, and as Chris Huhne, Secretary of State for Energy and Climate Change, says, “The future’s electric.” The levels of investment needed to meet this demand require long-term stability, which the Green Investment Bank, set to launch in April 2012, should help address. The bank is intended to bridge the gap between venture capital and the green economy, provide the finance for low carbon infrastructure and lay the foundation for long-term, balanced growth.

While it takes time to build more efficient power plants and test new clean technologies on the supply side, everyone has the opportunity to play a part in minimising their own energy consumption and waste in the workplace. This can result in substantial returns for individuals, companies and the government.

Energy efficiency is increasingly seen as the most important action in terms of what can be realistically achieved in the timescales required to reduce carbon emissions. Individuals and organisations can play an active role in tackling the energy challenges that lie ahead and that can have an immediate effect both on carbon emissions and the bottom line.

A good place to start is with ISO 50001, which launched in May. It is a replacement for the BS EN 16001 energy management standard, (launched in the UK in 2009) and is the only standard to focus solely on energy efficiency. It is designed to help organisations establish the systems and processes necessary to improve energy efficiency, leading to reductions in cost and emissions through systematic management of energy. It requires organisations to measure their consumption, conduct an audit and investigation as to exactly where energy is being consumed, then draw up a list of opportunities for making savings and incorporate them into energy policies.

It is the whole workforce – not just the energy industry – that will be affected by the transition to a low carbon economy. Today’s society is much more environmentally aware and this is increasingly influencing customers who may choose to buy from organisations according to how they conduct their business and maintain their environmental obligations.

A low carbon economy must meet environmental and economic aims. Businesses that plan for both will meet the sustainability challenge most successfully and benefit their bottom line.

Jonathan Brown

Jonathan Brown, Managing Director for Energy at Serco, looks at the challenges of delivering a low-carbon economy

The demand for energy is rising. Set against a backdrop of ageing energy infrastructure (30% of the UK’s energy infrastructure is due be retired in the next 10 years), this creates significant challenges for governments, organisations, society and us as individuals. There are many issues to be addressed in delivering a low carbon economy, ranging from securing reliable and sustainable energy generation to managing the consumption of energy more efficiently.

Most of us have taken steps to manage our energy consumption more effectively, but to achieve the magnitude of savings necessary requires new and innovative approaches, technical expertise, investment capital and an appetite to accept and manage the risks involved in delivering this scale of change.

Serco has long supported energy reduction, on our own sites and through partnering with our customers. Energy management is increasingly being considered a service in its own right, enabling customers to access technical expertise and investment as well as receive guaranteed savings. While technology has a part to play in improving energy management, the key area to address is the engagement and education of people to bring about real, lasting changes in our attitudes and behaviours.

Serco Energy is already delivering this work across a number of customer sites. At RAF Benson’s Helicopter Training Facility, the energy management service will deliver an estimated 24% energy saving through a programme of improvements in monitoring and control, infrastructure upgrades and localised heat and power generation. Through the development and implementation of technical solutions and management innovation, this service guarantees energy reductions and financial savings.

There is also increasing concern as to the source and security of energy supplies. We are helping to address these challenges through the development of new radar technology in the UK Air Defence System, compatible with onshore/offshore wind farms, thereby removing a significant planning obstacle to the roll-out of future wind power. We are also providing support on the safety cases for new build nuclear and nuclear decommissioning, waste management and environmental remediation.

Our customers are increasingly looking to the local and sustainable generation of energy to manage their energy costs and carbon footprint, as well as addressing security of supply concerns, underpinned by government initiatives such as Feed-in Tariffs and the Renewable Heat Incentive. Serco Energy is drawing on the company’s extensive track record in innovative service delivery to meet the requirements for the development, management and maintenance of the UK’s evolving energy challenges. In the UK alone, Serco has reduced its own carbon emissions by 7.25% in the past two years. We are using our experience and skills to develop products and services sustainably and to deliver improvements in energy management processes and infrastructure that underpin a successful future with a secure, sustainable low-carbon economy.