Voltage Power Optimisation: A simple way to cut energy costs

Posted by Knight Frank Newcastle on 14th November 2019 -

In partnership with the Better Buildings Partnership, Knight Frank’s John O’Riordan explains how the Schroder UK Real Estate Fund has successfully trialled Voltage Power Optimisation in its portfolio

Sustainability is high on the agenda for landlords and occupiers alike. But for landlords and asset managers, new technology also offers the potential to significantly reduce running costs and improve the reliability of a building’s energy supply. 

What is Voltage Power Optimisation? 

To cut energy costs, reduce CO2 emissions and improve power quality for occupiers, the Schroder UK Real Estate Fund has installed voltage power optimisation technology in three of its multi-let office buildings. This equipment regulates and conditions the voltage on the main incoming electricity supply, eliminating excess voltage, triple harmonics and spikes. For many commercial buildings, it offers a simple way to reduce energy consumption across all electrical equipment and appliances. Informed by the results of the initial rollout, the Fund is now exploring opportunities in some of its other assets.

Key benefits: 

• £45,700 annual energy cost savings
• 273 tonnes less CO2 annually
• Longer equipment lifespans
• Payback across three sites of 2.4 years
• Lower maintenance costs

Knight Frank’s Energy and Sustainability team advises clients on clean technologies that can be used in buildings and across portfolios to help meet industry best practice, exceed legislative requirements and deliver business cases with an attractive payback.  

“At Schroders we aim to improve the energy efficiency and consumption within buildings in our portfolios,” says Jessica Berney, Fund Manager of Schroder UK Real Estate Fund. “We are pleased with the results of Knight Frank’s voltage power optimisation programme, which is reducing energy use across all electrical equipment in the buildings, cutting both costs for occupiers and carbon emissions.

Schroder UK Real Estate - Case Study 

In 2017, the Schroder UK Real Estate Fund asked Knight Frank to explore the energy saving opportunities in the buildings managed by them on the Fund’s behalf. Sustainability is an integral element of Schroders’ investment process. Knight Frank is property manager to the buildings and is supported by its dedicated Energy and Sustainability Team.

Alongside wider energy reduction activities, Knight Frank worked with consultant partner Intelligent Energy Saving Company to assess the potential of voltage power optimisation in several buildings.

Voltage power optimisation can work because electricity from the National Grid is generally supplied at a higher voltage than necessary. This is largely due to old distribution networks designed to operate at higher voltage levels, which wastes energy and shortens equipment lifespans through overheating or vibrations caused by excess voltage and voltage spikes. In addition, Grid power quality now experiences greater levels of fluctuation due to increasingly diverse renewable power feeds affecting voltage volatility, transients and harmonics within the network. Voltage power optimisation helps homogenise this variable power output.

Knight Frank looked at voltage power optimisation solutions from three providers. They opted for powerPerfector because:

1. The technology has no moving parts, which means there is nothing to break down. It is a ‘fit and forget’ technology. Once the optimisation level is set, the only maintenance requirement is electrical testing every five years.
2. The installation process is very robust, mitigating the risks associated with installing any technology on the incoming supply. These include health and safety, and secure power supply, essential for occupiers.
3. Strong predicted savings are backed by performance in thousands of installations and case studies.

Challenges & Achievements

Champions

How to get energy saving technology projects off the ground?

A senior level champion will help energy efficiency projects get off the ground and ensure that people work together to overcome any issues. Given the complexity of systems and how every building is unique, there are often hitches on technology projects in buildings. A common issue with voltage power optimisation projects is a lack of space in the switch room for the optimisation unit. This can be overcome with cabling linked to an alternative location, and costs for this need to be factored in at the outset. Knight Frank championed voltage power optimisation and secured buy-in from the Fund’s investment managers, as part of the wider programme to meet energy saving targets for the portfolio.

Engagement

How to bring occupiers on board?

A feasibility study was conducted for each building, analysing the potential savings, costs and returns. Each site was surveyed, looking at voltage levels across the site, load, size of units, placement and potential savings from the electrical equipment on site. The projects were signed off for inclusion within the appropriate service charge budgets and discussed with occupiers. Occupiers particularly welcomed how the technology improves efficiency across the entire electrical infrastructure of the building, in both common parts and occupier areas, because it acts at the point where the main supply enters the building. 

Engineering 

How to mitigate engineering risks?

At the start of the project, the contractor’s engineers survey the site, accompanied by the FM team, assessing the switch room, testing the voltage, confirming that the voltage can be optimised and identifying the unit capacity required, along with any cabling. The contractor then builds the unit and the FM team liaises with occupiers to agree the shutdown date, which typically takes place overnight at weekends. Once the unit is delivered, it is placed in situ and any additional preparatory work is completed. Once the building is shut down, it usually takes 3-4 hours to connect and test the unit, before bringing the building back online in stages to avoid overload. The contractor and FM team then stays on site for another 2-3 hours to check that all the building’s equipment is functioning correctly. 

For more information contact John O'Riordan, Associate at Knight Frank.