The Perfect Storm: What to do with your existing buildings - Lexology

2022-07-23 01:03:10 By : Mr. Tom Zhong

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Switch2 Energy, Shoosmiths and BEIS have come together to provide an update on how regulation, rising energy prices and decarbonisation targets are impacting heat network operators and customers.

This second webinar, in a series of three, looks at what to do with existing buildings in relation to heat networks. It considers the problems with existing heat networks and solutions to help them operate more efficiently, including:

As a reminder, the last webinar in the series will cover:

Key points from the second webinar

Why are building owners in this position?

Gas price rises – the cost of gas has increased by over 5x, from 2p/kWh to between 7 and 8p/kWh

Poorly maintained heat networks – networks are not being maintained at their optimum efficiency

Lack of regulation and protection for residents with no consistent standards, those running heat networks have no rulebook to follow, but hope remains that this may change

The electricity cost of plant rooms are not factored into tariffs, but swept up by the landlord. If the heat network can be operated more effectively, it will reduce the pumping cost - meaning the service charge in buildings can be brought down.

Common issues and the three levels of intervention

The following examples on how operators and asset managers can improve efficiency have been ascertained from Heat Network Efficiency Scheme (HNES) surveys carried out for clients by Switch2.

Lack of insulation (e.g. around terminal runs can contribute to overheating)

Poor control (e.g. radiators not being balanced)

Lack of insulation – eg around valves

Thermal bridging – where pipes warm up the walls taking heat out of the system

What good looks like: Aim is to achieve is a temperature of 70°C coming out of the plant room, going through the HIU apartments and coming back at 40[degrees] C – this means low pumping costs, low losses on return leg and high generation efficiency.

This can easily be achieved with good maintenance.

The not so good: In heat networks which are not effectively maintained, the temperature coming out of the plant room is 70°C but some HIUs are not taking enough heat out of the system and sending the water back at 65°C – this means increased pumping costs, increased losses and boilers working less efficiently.

You can use meters to find out which properties are not being maintained properly and significantly reduce costs by putting better maintenance measures in place. On current gas costs savings of £74k - £93k can be made with just a few basic interventions such as insulation or paying a little more for maintenance.

Running a heat network properly – what you need

Heat Network Efficiency Scheme (HNES) Overview

Alignment of priorities and contract structure

Key issues for existing buildings

Debt management and risk – historic and future debts

Cost and energy pricing controls

Management and sufficiency of sinking fund

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