How large scale electrical assets can help decarbonise the UK – and your organisation
If your organisation wants to reduce its carbon footprint, the easiest first step is to ensure you’re using renewable electricity. This could come from a trusted supplier, via your own renewable generation (on-site wind turbines or solar panels, for example), or a combination of both.
The next step, while arguably harder, is to use your large scale electrical assets (LSEAs) less often – or at different times.
This article explains what we mean by the term ‘large scale electrical assets’ and discusses how they can help you reduce emissions and – potentially – access new revenue streams. It also focuses on an asset proving popular with businesses looking to decarbonise: heat pumps.
What do we mean by large scale electrical assets?
Given that the energy industry uses this term in the context of energy reduction and decarbonisation, it makes sense that it’s become the catch-all name for machinery, equipment and other assets that consume lots of power.
So, this could include a complete heating, ventilation and air conditioning (HVAC) system, used to warm or cool buildings, improve air quality and balance humidity levels. For food manufacturers, suppliers and packaging firms – and other sectors – fridges and freezers could be classed as LSEAs too. In such industries, temperatures often need to remain within certain parameters (to stop food spoiling, for example). However, there’s usually scope for tweaking the value within the permissible range – or even shutting down an asset for limited periods of time.
Having on-site renewable assets has already been mentioned as a way of reducing emissions. An additional benefit is that solar panels and wind turbines can help reduce costs – especially when combined with batteries, another LSEA. When the conditions are right, organisations can use their on-site renewable sources rather than the more expensive power available via the grid. And if the sun’s not shining or the wind not blowing, having a battery allows the business to store electricity generated on the grid and use it later.
How LSEAs can help reduce emissions and earn revenue
Reducing emissions and making money with your LSEAs depends upon two factors. Using them at the right times – which may involve changing your operations – or in ways that consume less energy. An example of changing consumption levels would be to adjust the thermostat on a heating or cooling unit.
Being able to make such adjustments first involves creating (or finding existing) flexibility in your organisation’s operations in terms of how you use electricity.
By reacting to the peaks and troughs in the cost of this electricity, you can cut your energy expenditure. By responding to requests from the National Grid Electricity System Operator (NGESO), you have the potential to generate extra revenue. Such requests may include reducing usage or generating and supplying power if you have renewable generation assets in place. We helped Sundown Products, an agricultural business from Cambridgeshire, reduce its costs by £35,000 a year – a saving we were able to guarantee up-front.
For more about reducing emissions and earning more, read this article.
An LSEA in focus: heat pumps
Heating buildings causes almost one fifth of the UK’s carbon emissions. Using heat pumps instead of traditional boilers can help decarbonise your organisation, cut costs and support demand flexibility.
What do heat pumps do?
There are several different kinds of heat pumps, but all work by drawing existing heat from the air, ground or water surrounding a building. The pumps use the warm air to heat the premises.
How do heat pumps work?
Air Source Heat Pumps (ASHPs) take heat from the air using a powerful system of fans. Ground Source Heat Pumps (GSHPs) take heat from the earth using coiled pipes or a borehole.
Can heat pumps help with demand flexibility?
All heat pumps use power to condense the heat they’ve extracted and bring it into your building. By partnering with a flexibility provider – such as Drax – it’s possible to turn down a heat pump when electricity demand and prices are high, either manually or through an automated process.
Optimising your heat pump can help generate additional income through flexibility markets and can support efforts to increase demand flexibility as the UK decarbonises its national electricity grid.
Are heat pumps efficient?
Heat pumps produce more heat than the electricity they use, so they’re more efficient than other heating methods. The amount of heat they produce for each unit of electricity they use is known as the Coefficient of Performance (CoP). So, if you buy a heat pump which has a CoP of 3.0, then each unit of electricity it consumes will produce three units of heat.
Are heat pumps a lower-cost option?
Heat pumps let you benefit from free heat. And because they extract heat from their surroundings rather than generating it, heat pumps use much less energy than traditional fossil fuel or even hydrogen boilers. This means they can help your business save money on operational energy costs at the same time as helping to reduce your carbon emissions.
If you combine a heat pump with your own on-site renewable power and batteries, then you can reduce your costs and emissions even further. This could also help support demand flexibility even more.
You could even profit from heat pumps by optimising the way your organisation uses electricity.
Heat pumps – the pros and cons
| Pros | Cons |
|---|---|
| Lower running costs than boiler-powered heating Because they absorb heat from their surroundings, heat pumps are much more efficient than boilers. This means they use – and you need to pay for – less energy to run. |
Upfront investment Heat pumps are more expensive to install than conventional boilers. However, you can offset these extra costs against lower energy costs over the lifetime of the system. Increasingly there are finance packages available to spread the cost over a longer period. |
| Less maintenance Gas boilers need regular servicing by a qualified engineer; heat pumps require less maintenance. |
More complicated installation< All heat pumps require a well-designed system that matches their operating parameters. A good designer will know what to do. GSHP in particular can require significant building work. |
| Safer Because they don’t burn fuel, there’s a much lower risk of explosion with a heat pump. |
May require planning permission In Wales and Northern Ireland, heat pump installations currently require planning permission. In England and Scotland, they may do, depending on your project. Your installation partner can help you with this. Generally, planners look favourably upon heat pump installations. |
| Lower carbon emissions Although they do require some electricity to run, heat pumps use much less energy than boiler-powered heating systems. Consequently, they produce far lower carbon emissions – especially when using renewable electricity and natural refrigerants. |
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| Can provide cooling Some heat pumps can reverse their cycle and cool your building when the weather is hot. |
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| Can help with demand flexibility When working with a flexibility partner, it’s possible to turn heat pumps down or off at periods of peak demand. This supports the demand flexibility the UK needs, and generates additional revenue from flexibility markets. |
A heat pump in action
At Drax, we’re helping a farm in Scotland optimise a commercial 380 kWh Ground Source Heat Pump. This is designed to provide low temperature heating and cooling for the farm’s produce stores. We’ve now installed equipment that means the heat pump system is turned down automatically when it’s beneficial for the client – such as when electricity prices rise.
In this way, the farm can carry on its core business without any disruption. But when the time’s right, the owners can ‘switch off’ their demand and profit from the electricity flexibility market.
