Flexibility case study- Energy efficiency

Introduction

A warehouse is looking to provide Flexible Services to Electricity North West through a Sustain contract by carrying out energy efficiency measures to reduce their demand, providing additional capacity to help manage network constraints. 

About Flexible Services

When the demand for electricity is greater than the amount that Electricity North West can provide, we procure Flexible Services to alleviate constraints on our network during peak times. These services are provided by companies or individual customers known as Flexibility Providers, who own assets in our region such as generators, battery storage and EV charge points that can generate more or use less electricity when required, and can provide a minimum of 50kW either individually or via an aggregator. This allows us to balance supply and demand, ensuring a safe and reliable supply of energy for our customers and in return for providing extra capacity, flexibility providers receive payment from the network. 

To participate in Electricity North West's Flexible Service's tender, the warehouse will implement the following energy efficiency measures to reduce their electricity consumption:

     

Lighting: Lighting accounts for between 65% and 95% of energy use in ambient warehousing. There are many simple and inexpensive ways to reduce lighting energy consumption and costs while maintaining adequate light levels:

• Switching to LED lightbulbs: There are two main types of energy efficient light bulbs available in the UK. Compact fluorescent lamps (CFLs) and light emitting diodes (LEDs). CFLs use 60%-80% less energy than traditional incandescent light bulbs but LEDs use 90% less. So while both are cost effective, LEDs are the most energy-efficient option. Originally the cost of LED lighting was comparatively high but prices have come down a lot over the last few years, meaning this option now offers the best value for money. Replacing a single halogen light bulb with an LED of the same brightness will save you up to £2 per year.
• Turning off lighting in unoccupied areas and switching off lighting when sufficient natural daylight is present.
• Utilising occupancy sensors- Lights are automatically turned on when there is somebody there to require them and are turned off after a period of vacancy. Sensors can achieve savings of 30% or more on lighting costs and can be zoned by aisle or area depending on the individual requirements of the warehouse.

Improving insulation: The standard of building insulation and building air-tightness should be prioritised. Spray foam insulation provides effective insulation that seals the roof from the interior. This type of application adheres to virtually any surface at any angle, and is especially effective within the warehouse environment where corrugated roofing is typical. Traditional insulators cannot follow the contours of corrugations - they are therefore complex to install and may create gaps which can result in condensation. The benefits of insulating your warehouse soon add up: you can enjoy greater temperature control and its associated energy savings; a warmer environment in the winter and a cooler one when the temperatures rise outside and the complete foam seal fills any gaps, eliminating draughts and leaks.

Installing solar panels (also known as PV): Solar panels work by absorbing sunlight with photovoltaic cells in the panel. This energy creates electrical charges that move in response to an internal electrical field in the cell, causing electricity to flow. With large available expanses of roof area, warehouses are an ideal location to install PV solutions. As warehouses are energy-intensive buildings, installing a solar PV system on the roof provides a secure and reliable source of renewable energy that can be used to generate electricity for the entire building. It also reduces the businesses carbon footprint and provides extra revenue when used to generate electricity for the purpose of providing Flexible Services to the network. 

Pre-tender

Our tenders are published on the PicloFlex platform twice a year in Spring and Autumn in line with our Network Development Plan 

(NDP) and Distribution Future Electricity Scenarios (DFES) publications to reflect our latest requirements. To be notified of our upcoming tenders, the supermarket signs up to our flexible services distribution list.   

Prior to the launch of the tender, the warehouse:

• Registers the company onto Piclo's Dynamic Purchasing System (DPS) to pre-qualify to participate. The information submitted such as credit checks and insurance details are assessed by Electricity North West and once approved, the companies DPS remains valid to participate for up to 12 months.
• The warehouse then registers and pre-qualifies the assets they wish to utilise onto Piclo. 

Tender process 

An Invitation to Tender (ITT) is published on our website and on Piclo which defines the terms of the tender and the tender process, Flexible Service types required, periods and capacities for each zone requiring a Flexible Service, and the technical requirements. 

Pre- Qualification

Once the ITT has been published, the warehouse reviews the requirements using the interactive map on Piclo, and upon establishing that their warehouse is located within a requirement zone seeking a Sustain service, they calculate how much of the required demand response it can offer, when, and at what price. Prior to submitting a bid, the warehouse uses the cost calculator tool on our website to check that the prices they are prepared to offer for availability and utilisation don't exceed the ceiling price that we are offering for the service as part of this tender round. The cost calculator can be found within appendix 6 of the ITT appendices. At this point, the warehouse has decided they would like to participate in the tender and their next step is to complete the Pre-Qualification Questionnaire (PQQ) on Piclo to provide the necessary technical details of the participating sites and the capability for delivery. Once the questionnaire has been completed, the warehouse then confirms their participation in the competition on Piclo. 

Submitting a bid

For the final stage of the procurement process, the warehouse submits a bid to the tender via the Piclo Flex platform. This is carried out by linking the pre-registered assets to the Availability and Utilisation payments, as well as the periods where the warehouse can deliver availability of the response. Once the bidding window has closed, Electricity North West assesses the tender responses before accepting or rejecting bids based on the proposed payment and its ability to meet the specification. If the warehouse's bids are successful they will then enter into a Flexibile Services Agreement with Electricity North West to deliver the Sustain service within the required service windows. Electricity North West utilises the Standard Flexibility Services Agreement developed by the Energy Network's Association Open Network's Project.