Interesting research from big six energy provider npower has highlighted that the issue of energy is the most important matter facing businesses today.

The npower Business Energy Index 2011 showed major energy users (MEUs) indentifying energy and legislation as the biggest risks their businesses face and yet 86% admitted that energy is not a board level issue. 50% have no idea where they are using energy and cannot allocate costs by usage.

This is music to my ears!

For years Riello has been encouraging and guiding customers through our consultancy and surveys to understand more about energy management and get a clearer picture of their current energy use. Only by doing this can they begin to make reforms, install the latest energy efficient equipment (including UPS), streamline their business practices, implement energy saving initiatives and reduce costs overall.

Also, securing a clean, stable and continuous supply of electricity should come first for businesses because without it, most would not be able to operate – our reliance on electricity has become so ingrained.

On that note, I was interested to read a story on Energy Live News about Dixons Retail. Apparently, the company has cut its electricity use by a third in just 12 months. Latest figures show the retail group, which includes Currys and PC World, has netted £1.9 million in savings since May 2010.

The retailer’s energy saving initiatives included:

• Talking to staff.
• Running energy surveys.
• Analysing energy data.
• Implementing specific and individual store-based solutions to change lighting, heating, ventilation, store displays.
• Energy monitoring.

This goes to show that it can be done and need not cost the earth or consume valuable resources. If you’re interested in reducing your energy consumption, understanding more about your energy usage, or wanting to implement energy management and energy savings plans, talk to one of our energy consultants about how you can ensure reliable power protection while reducing energy bills.

The Confederation of British Industry worries the proposed Carbon Price Floor will drive big business out of the UK

On 12^th July, Secretary of State for Energy and Climate Change Chris Huhne delivered his much-anticipated white paper on Electricity Market Reform (EMR). Setting out coalition measures to keep the lights on, consumer bills down and shift the economy away from a high-risk, high-carbon future.

Here at Riello, we feel it’s our duty to comment on energy market issues.

Key elements of the reform package, as we understand it, include:

• The introduction of a Carbon Price Floor (essentially a regulatory/taxation policy demanding polluters pay a minimum amount of money to pollute). The aim is to reduce investor uncertainty, put a fair price on carbon and provide a stronger incentive to invest in low-carbon generation.

• The introduction of new long-term contracts to provide stable, financial incentives to invest in all forms of low-carbon electricity generation.

• Introduction of an emissions performance standard (EPS) set at 450g CO2/kWh to reinforce the requirement that no new coal-fired power stations are built and to ensure the necessary investment in gas.

• Development of a capacity mechanism, which will safeguard future security of energy supply.

The Government intends to legislate for the key elements of the EMR in 2012 and for it to reach the statue book by spring 2013.

Since the reforms were announced, there has been a backlash of criticism (unsurprisingly) from the Labour party but also from the UK business sector. Research by the Federation of Small Businesses highlights that 81% of small firms are worried about the rising cost of energy and are concerned that electricity generators will pass on to them the extra costs associated with EMR.

Small businesses consume similar amounts of energy as do domestic energy users but they do not receive the same regulatory safeguards and are unable to negotiate contracts the way larger companies can.

Any investment in new technology in electricity generation and distribution infrastructure is bound to result in price increases, especially as electricity is such a necessary commodity. Some of this is unfair i.e: generators hiking up prices to capitalise on market demand, but some is necessary: we desperately need new investment in what is essentially an outdated national grid. So, in my view, businesses large and small need to put their focus on using less energy rather than hoping for prices to fall in the fulness of time.

Meanwhile, the Confederation of British Industry, which represents 240,000 businesses, is worried that the Carbon Floor Price (which puts £16 per tonne of carbon dioxide emitted on to large businesses) will drive manufacturing, engineering and industry out of the UK.

There is still a lot to be decided before the new reforms start to bite but one thing is clear; energy costs will continue to rise, which is why many companies are now taking measures to reduce energy consumption and install new energy efficient technologies. Today’s UPS are highly efficient. Check out our energy efficiency figures.

SMEs should implement efficient UPS to achieve cost savings and reliable power protection

It’s been reported in an article on ELN (www.energylivenews.com) that Energy Minister Charles Hendry has been forced by his Shadow counterpart (Huw Irranca Davies) to concede that the Government’s energy policies could add as much as 43% to the average electricity price paid by small to medium businesses by 2020.

His revelation coincides with a predication by the Department for Energy and Climate Change (DECC) that SMEs will be lumbered with nearly a quarter increase (24%) on gas prices.

Just how far will the Government allow these prices hikes to go?

A month ago, Scottish Power became the first to inflict horrendous, double-digit price hikes on its customers and last week British Gas followed suit. It’s only a matter of time before the other four of the big six (E.ON, EDF, Scottish and Southern Energy) do the same. It will mean the average dual fuel bill will have risen by 50% since 2007 to nearly £1,500 per annum.

For business energy users, now is the time to fix a price with energy suppliers and/or switch to another, more competitive tariff. Energy Secretary, Chris Huhne is fighting to open up the energy market to smaller players and make it more competitive. Quoted in an article in the Telegraph earlier this week, he said: “The energy market has been too cosy for too long and it is madness that 99% of people get their energy from large firms.”

But what does this mean for UPS (uninterruptible power supply) customers?

Older UPS equipment is not as energy efficient as newer models. Any system between 5-10 years should be considered old in terms of energy efficiency.

Since 2007, UPS manufacturers have been introducing new products designed around energy efficiency and reducing TCO (total cost of ownership). Older UPS could be responsible for consuming 18% of the total energy used in a typical data centre. And when you consider the average data centre can consume as much as 2MW of energy per hour, it’s a considerable amount.

Modern UPS waste less energy in the conversion process and can be as much as 40% more efficient than their older counterparts (depending upon various load and operating criteria). Many UPS are as much as 96% efficient in online mode, a rating that can rise to 99% when running in certain other economy modes.

Efficiency is not just about energy use it takes into account maintenance, floor space, scalability, flexibility and TCO. Modern UPS incorporate microprocessor technology that enables smarter, intuitive management and allows remote interrogation by users giving them more control over operation, and thus, the ability to proactively manage and influence efficiency.

Today’s UPS are smaller in size and lighter in weight, which reduces building and installation costs. They leave room for easy serviceability and maintenance – key to reducing lifetime costs. How a UPS draws energy from the mains (termed Input Power Factor) can influence energy efficiency. It should be rated high (0.99). The higher the input power factor, the lower the reactive power (wasted energy). How a UPS utilises energy while protecting loads also influences efficiency, as does how they deal with Total Harmonic Distortion (THDi) to produce a pure sinewave input current that reduces energy wastage. The management of consumables (such as batteries, fans and capacitors) so that they are replaced less often serves to reduce operating costs overall.

Return on investment on new UPS can be as low as 2-3 years. Upgrading to new UPS models equates to an investment in equipment designed for more reliability, that meets the latest regulations and standards, offers more features, better performance, increased power protection, higher efficiency and lowest TCO. For sure, the best antidote to the dilemma of rising energy costs coupled with the need for greater power protection.

I read with interest an article on ELN (energylivenews.com) that reported that EU regulation on motors could potentially save as much electricity per year as the current annual energy used by 32 million European households.

A European Minimum Energy Performance Standard covers motors from 0.75kW up to 375kW and requires manufacturers to display the international efficiency class of their products. Motors are said to be the single biggest consumer of energy, using around 45% of global electricity every year.

Standby power generators contain motors. To date, motor and generator manufacturers have focussed more on performance. Generator manufacturers have been somewhat motivated by carbon taxes and other ‘green’ initiatives to look at reducing emissions and their remit was to do so without compromising capability. Many have done so admirably. In standby power generation, efficiency didn’t used to matter because such generators ran infrequently and for a short time but with costs spiralling out of control, a downturn in economies the world over and rising fuel prices, energy efficiency in standby power generators may be on the agenda.

The EU’s introduction of this motor standard will heighten concern – especially as such significant savings in energy costs can be achieved.

A recent study by the Economist Intelligence Unit concluded that it is possible to save about 20-30% of total motor power consumption (around 9-14% of all global electricity consumption) by using modern technology at all stages of the generation, distribution and use of power.

Interestingly, the report also found that 60% of manufacturers have not yet invested in improving the energy efficiency of their capital, plant and equipment over the past three years. With rising energy costs set to continue, perhaps now is the time to push energy efficiency in power generation further up the agenda.

According to new research by the Carbon Trust, and reported in MarketingWeek, nearly half of consumers said they would shun brands that aren’t taking steps to reduce their carbon footprint. More than a fifth (21%) said they would pay more for brands that label their products with their carbon impact. 47% of respondents stated that they are likely to choose low carbon labelled goods over non-labelled.

The Carbon Trust says the findings underline the need for corporate leadership on carbon reduction. They also point out that only 59% of FTSE 100 companies have clear targets to cut carbon footprints.

I think it’s great when companies show a real interest in environmental issues but I have to say, I’m a little sceptical about such research. Firstly, the article was in MarketingWeek, which is a magazine dedicated to the marketing industry and focused on marketing messaging.

Actions speak louder than words and to me there’s a vast difference between a company or business purporting, through marketing verbiage, to be taking action on carbon change and actually doing it. Look no further than certain high-street clothing retailers recently claiming to be ‘ethical’ and yet unwittingly buying into child labour. It demonstrates how easy it is to say one thing and yet without proper controls in place to actually be doing another. Marketing messages are shallow but consumers are savvy and less likely to be taken in, in my view. It doesn’t take much to label a product green and broadcast a low carbon footprint without doing much to actually reduce your carbon footprint.

Over the last decade, we’ve invested a great deal in product design with energy efficiency, lowering total cost of ownership, and increasing performance and reliability across all our range. Our UPS use less energy, take up less space and are easier to maintain. We’re also at the forefront of new developments such as renewable energy (solar) and flywheel/rotary UPS that doesn’t require batteries. Equipment is lighter in weight, so cheaper to transport, smaller in size so it doesn’t occupy so much space and contains fewer component parts so over its lifetime it will cost less to run and create less waste. Of course, it gives us some really useful marketing messages but more than that it makes our carbon claims tangible – and it helps our customers in their efforts to minimise their carbon footprints. And that, to me, is what it should be about – not paying lip service to environmental issues.

A news item in DatacenterDynamics caught my eye today: according to a recent survey released this month by The Ponemon Institute in the USA, 65% of the 41 USA-based data centres it surveyed (2,500 square feet and above) cited UPS battery failure as the biggest cause of unplanned downtime in the past two years.

The most costly data centre outage during that time cost its operators over $1million (around £620,000 at today’s values).

The survey looked at costs associated with the impact on productivity, legal and regulatory consequences, lost confidence and stakeholder trust (among others).

Although the $1m is at the top of the range ($39,000 was reported as the lowest), the survey concluded that the average cost of data centre downtime is $5,600 (around £3,472) a minute. The average incident length was 90 minutes.

Sadly, I have to agree that this reflects our own experience. A high proportion of the UPS failure call outs we deal with (that are not supported by a maintenance contract) are as a result of UPS battery failure because the batteries have either not been checked by the operator or an alarm signal has gone unheard.

As part of a maintenance contract, Riello UPS schedules regular maintenance visits by experienced and qualified engineers who check battery condition as standard and replace any batteries that are showing signs of wear and/or are not holding charge. A maintenance contract with remote monitoring enables us to be alerted by the remote monitoring system whenever an alarm is signalled. We can deal with the problem before it causes downtime – and save our data centre customers a lot of money according to this survey.

If you want to know more about UPS remote monitoring or the true value of UPS maintenance contracts, visit our website.

It’s that time of year when rural areas illuminate the abundance of nature. Farmers are preparing for the August harvest, making hay while the sun shines, and getting the most out of the long days. It’s a peaceful setting, but under the surface war is looming. Farmers face an uncertain future and many are finding themselves caught, in the middle of the debate as to whether to grow cops for food or hand over land and resources to energy production? The world needs both, desperately, and as G20 approaches, it looks as if the debate will rage on.

By 2050, the world will have a population of 9.2 billion. It will also have an increased number of homes and businesses to heat, light and provide electricity for if economic growth is to be sustained.

Many UK farmers have already taken the leap; giving land and resources over to either crops for energy production, such as oilseed rape, linseed or Willow Short Rotation Crops (SRC) or by becoming energy producers themselves; installing wind farms, solar arrays, anaerobic digesters, wood burners and many other sources of renewable energy production. Many are leasing land they would otherwise use to grow crops to energy producers. Subsidies for renewable crops have made growing them more attractive than food source yields. A relaxing of the rules around set-aside to grow non-food crops has also made it more inviting for arable farmers.

As G20 gets underway in Paris in June, global organisations such as the United Nations (UN) have called for sustainable farming to replace intensive agriculture while at the same time calling for a 70% increase in farming output to meet future food production requirements. International agencies: World Bank, IMF, WTO and the UN blame biofuels subsidies for driving up food prices. High oil prices are forcing crop values up to unaffordable levels and a fluctuating oil market increases food price volatility.

Alongside growing food crops or farming energy, farmers are also being pressured into cutting GHG (Green house Gas) emissions. The UK Government has already issued the agriculture sector with a GHG reduction target of 11% by 2020. Farming and land use is currently responsible for around 8% of the total UK GHG emissions (according to The Carbon Neutral Company).

There’s something to be said for self-sustainability: grow your own food and generate your own electricity and the continuing farming debate makes it even more sensible.

The UK government today published proposals to reduce the financial support available to large scale solar produced electricity as part of its plans to protect financial support for homes, communities and small businesses.

Back in February, the Government was forced into a fast-track review of the FITs (Feed in Tariff Scheme) for photovoltaic (PV) installations over 50kW in size after becoming aware of evidence showing that 169MW of large-scale solar capacity was already in the planning system. That is equivalent to funding solar panels on the roofs of around 50,000 homes, which could potentially soak up the majority of the Government’s green subsidy for renewables (wind, hydro and anaerobic digestion).

The Government argues that the FITs scheme was never designed to be a profit generator for big business and financiers but it seems it is they who are rushing to secure land from farmers, order components and connect projects to the grid so that they can qualify for the scheme and get paid for the electricity they generate from their solar PV array.

The scheme was designed for all solar users (private residential and light commercial, small businesses) other than those profiting commercially from reselling energy to other energy users. It guarantees a minimum payment for all electricity generated by the system (termed the ‘generation tariff’), alongside an additional payment for the electricity it exports to the grid (termed the ‘export tariff’). These payments are additional to the bill savings customers get from using the electricity generated on-site. Payments vary, depending upon system size and when it is installed. They are index linked and guaranteed for 25 years.

For every unit of electricity generated you will receive the generation tariff for solar PV currently set at:

• Existing building = 41.3p/kWh for 25 years
• New Build home = 36.1p/kWh for 25 years

You will also be paid 3p/kWh for every unit of electricity you export and you will save around 12.5p/kWh on your energy bills for every generated unit you use in your home. An approved generation meter, supplied by your installer as part of the package, will measure the amount of energy generated. Until ‘Smart’ meters are rolled out countrywide, any export payments through the Feed in Tariff scheme will be deemed at 50%. So, you will get paid for exporting 50% of the electricity you generate regardless of how much you actually do export.

To be eligible for the FITs scheme, your system must have been installed on or after 15^th July 2009 using new equipment and both system and installer must be registered under the Microgeneration Certification Scheme.

There are those in the industry who say that if the Governments reduces (which it is expected to do) or takes away the subsidy for large-scale PV systems, they will in effectively slow down, or even bring to a standstill, the development of the solar PV industry, and this will have a hugely negative effect on overall ‘green’ initiatives and the Government’s carbon reduction goals.

If you would like to know more about solar PV installation, visit our website.

In the UK (and many other parts of the world) February is famed for one thing – and one thing only ………valentines day!

Not much else happens in the second month of the year except that one day where people who are married (or in long-term partnerships) frantically search in last minute haste for a card (or some kind of token) for the ‘better half’ while those who are single (or dating) excitedly listen out for the familiar sound of the letter box. For others it may be just another day to forget. Whatever it means to you, you can’t fail to notice it.

This February is special for Riello UPS; we have our own exciting alliance going on. It’s not so much a marriage as a consolidation of 14 years of integrating Riello UPS and AROS Engineering. Further details will be announced in due course but for UPS customers and business partners, it brings all of the manufacturing and marketing resources of the two companies into a single, leading, world-class UPS supplier. All UPS products (including those previously sold under the AROS name) will be marketed worldwide under the Riello UPS brand and all solar inverter products will be sold under the AROS Solar Technology brand.

Riello’s branding will become Riello AROS UPS. More details will be announced later. Please visit our press centre for more information in due course.

In January 2010, energy watchdog Ofgem introduced new rules for business energy contracts, which were designed to protect small businesses (in particular) from unscrupulous practices and unclear terms and conditions from energy suppliers. The new rules gave small businesses (those that consume less than 55,000kWh of electricity a years and have fewer than 10 employees) greater powers to negotiate better deals and contracts from their suppliers. However, the new rules were not retrospective, so businesses had to wait until their contract was up for renewal or they took out a new one.

Whether your contract is up for renewal or not and whether you’re a small business or not, January is always a good time to carry out an energy review or get one done for you. There are lots of companies offering free energy reviews for business customers. Free, however, often comes with a sales pitch at the end of it so beware. An alternative way of getting a more relevant energy review is to pay a professional supplier to carry one out for you or do it yourself (if you have the internal human resources available). What should it include:

First of all, you need to compile a detailed questionnaire covering:

Company/Site information: nature of the business, type of operations that go on site, hours of business, number of employees, floor area, details of any current energy saving initiatives (even if it’s just asking staff to turn off the lights), details of any previous energy surveys and the results, specific areas that you would like to address (such as cutting energy use in server rooms by 30%, for example).

The questionnaire should then log details from your energy bills such as peak rate and off peak rate charges and how much you used in the last twelve months. It should also detail any other fuels used on site such as gas, LPG, diesel and so on. Does your business pay any climate change levy (CCL)?

Then move on to details about building construction: wall fabrication, steel, floor, roof structure and type (pitched, flat, angled), is there a loft? What about roof insulation? What are the window frames made from? Log details of any double-glazing, insulation, draught-proofing and any other relevant information about the building itself (raised floors, false ceilings and so forth).

The next part of the review should detail all aspects of heating and hot water usage: type of boiler, heating, controls, hot water cylinder, insulation, immersion heating (and timings), air-conditioning, thermostats and piping.

The next part of the survey focuses on lighting, what type is installed (tungsten, halogen, fluorescent bulbs, strip lighting, outside lighting), rating, quantity of energy used by each type and the typical hours in the day in which they are illuminated alongside any problems you have experienced associated with lighting.

The final part of the survey detail any miscellaneous energy use by such equipment as: PCs/IT equipment, refrigeration, motors and drives, catering appliances, compressed air, domestic white goods, laundry appliances (if applicable).

Lastly (but most importantly), you need to log details of power protection systems: UPSs, on-site generators, batteries and other alternatives (fuel cells, flywheel UPS etc.). Study history logs: when and how often did you need to rely on them? What is their age and condition (now is a good time to do a thorough battery test as even one faulty battery can compromise the whole string)? Is your power protection adequate for your anticipated needs?

An energy review will put you in a better position to implement energy efficiency and power protection measures that address actual and specific areas of your business. It will enable you to save cost in the long run without diminishing productivity and to negotiate better deals with you energy supplier.