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Network June 2017

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NETWORK / 23 / JUNE 2017 What are the challenges to the widespread rollout of heat networks? Largely driven by planning policy, the district heat market is currently made up of thousands of small networks, each its own little island with few connections to bigger sources of low-carbon heat. Oen poorly delivered and rarely checked, too many of these networks suffer from dismal efficiency. In comparison to Denmark we are at the very start of our journey, with limited expertise, both in consultancies and those expected to operate them once they are complete. Poor efficiency oen begins at the start of a heat network's life. Clients oen don't know what to ask for when they specify networks, consultants are tasked with delivering abundant heat rather than efficiency, clients don't check that they have received what they asked for in the commissioning stage, and performance isn't being measured in operation. It all comes down to missing data. In order for district heating to fulfil its potential and deliver wide-scale decarbonisation of heat in the UK, it must demonstrate the following three things: • Efficiency. Networks must transport heat energy from source to customer with low losses. • Low-carbon emissions. District heat must result in demonstrably lower emissions by connecting customers to sources of low- carbon heat. • Value for customers. Heat customers must have the means to ensure they're getting value for their money. Currently the industry isn't making progress fast enough in any of these areas. To what extent can the performance of heat networks be quantified? In 2016, the heat sector finally recognised the importance of performance data. Helped by companies like Guru Systems, heat network operators began to obtain energy performance data from their networks. The data sent shockwaves through the industry as many realised that their networks are not performing anything like what was promised, largely due to shortcomings in design and commissioning. Using this information, the operators of these poorly performing networks could finally attach precise numbers to their long- held suspicions: that losses are high, that heat costs too much, and that service can be unreliable. Of course, customers on bad networks already knew this from their own experiences of high bills, cooking corridors, and intermittent heating and hot water. As the awakening gathers pace, a key trend for 2017 is quantified performance. Armed with clear requirements, clients will be more specific about what they want, and use measurement and verification to ensure they get it. Energy service companies, having had their fingers burnt, will no longer be content to sample performance on a limited number of dwellings before adopting a new network. Instead, they will use performance data to verify that 100% of equipment in homes has been properly commissioned. In short, networks won't be allowed to go into operation until they work as intended. This change in approach will have huge implications for the industry. Engineers will be required to design for good performance rather than abundance. They'll no longer be able to protect themselves (and their professional indemnity insurance) by oversizing pipes and plant. In a quantified world, oversizing a network will no longer protect you – it'll get you sued. A contractor's job is to deliver client requirements at lowest cost. So when requirements are vague, a contractor fills in the gaps with whatever costs least, regardless of the effect on performance. In addition, the lack of oversight from employers' agents and building control officers has led to a culture of complacency with heat networks. All this changes in a quantified world. Clients will procure systems using clear, measurable performance requirements. Projects won't achieve practical completion (and contractors won't get paid) until systems have been properly commissioned and demonstrably operate as designed. It's going to be painful at first. But over the course of 2017, it will start to become the new normal. Increasingly savvy clients will start to flex their muscles and hold their project teams to account. Consultants will recognise the need to do real engineering and to learn from past projects. Contractors will fulfil clearer contracts, knowing their work will be checked before they're paid. How might a better understanding of the performance of heat networks encourage take-up? Understanding performance will take the mystery out of heat networks. Up until now, the majority of designers and heat network operators haven't been able to see how their networks have been performing. And people are afraid of what they can't see. They have a right to be anxious; there are heat networks across the UK that simply aren't meeting the efficiency that was stated in the design. This isn't a scenario that we have to bear any longer. The data is there, and we can get it out of heat networks to see just how they are functioning, so we can make them better and learn from our past mistakes. N o p t i m i s i n g d i s t r i c t h e at p e r f o r m a n c e Guru Pinpoint Network Homes has been leading the transformation of the Stockwell Park estate near Brixton, London, since 2005. It has invested more than £100 million so far in refurbishment, new-build and community enhancement, and a further £75 million is earmarked for completion of the programme in 2018. The social housing properties on the estate are connected to a heat network, owned and managed by Network Homes, that supplies heating and hot water. As the estate's energy supplier as well as landlord, Network Homes had previously charged its residents a flat rate for energy as it was unable to monitor energy consumption in individual properties across the network. Landlords often set tariffs based on the expected performance of the system. If the initial assumptions are inaccurate, the landlord can lose money every time a tenant turns on the heating. The purpose of this project was to improve the performance of the heat network by trialling the use of the web- based Guru Pinpoint platform. Before the project started, Guru Systems installed its smart metering and monitoring technology at the point of generation and in individual properties. This gave Network Homes real-time data on how its network was functioning for the first time. The system allows the network operator to calculate exactly how much to charge for the energy it sells, and displays up-to-the-minute data on energy use to residents via a pay-as- you-go monitor in their homes. The challenges were significant. Data collected by the monitoring system uncovered network losses of 3,350kWh per dwelling per year. Guru Pinpoint also diagnosed issues with the network's heat interface units, which link the heat network to the heating and hot water systems of the individual apartments. In this case, the components had not been commissioned properly and were performing poorly, with high return temperatures as a result. As well as issues with key components, the data and site investigations discovered missing insulation on pipework into dwellings. Without insulation, the incoming pipes were acting like radiators, constantly losing heat to the hallways and communal spaces.

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