Smart local energy systems

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1 Smart local energy systems

2 Smart Local Energy Systems SG Energy Strategy Expertise in the management of local energy systems, coordinating the supply, storage and use of many devices, has developed to become a significant Scottish export industry. While we have a proud legacy of community energy projects in Scotland, what we think of as community energy is now shifting towards new models designed to be viable in a more difficult market. Not only does this mean a shift towards shared ownership (of commercial schemes), but also a broadening of policy scope towards smart local energy systems using nontraditional business models - and innovation in energy tariffs to offer different kinds of value to consumers of locally generated energy.

3 Smart Local Energy Systems The Scottish Government wishes to develop smart local energy systems over the coming decades. How achievable do you think this ambition is?

4 Smart Local Energy Systems - Local Energy Challenge Fund, Jennifer Ramsay - What is happening now? - Energy masterplans, Euan Dobson, Scottish Enterprise - How do we strategically design smart energy systems? - Levenmouth Community Energy Project, Barbara Whiting, Fife Council - World leading hydrogen project in Fife - Dalavich Hydro, Carol Thomas, Dalavich Improvement Group - Innovative grid sharing arrangement

5 Smart Local Energy Systems Local Energy Challenge Fund Scottish Government Energy Strategy Decarbonised energy Energy systems approach Localised energy Local Energy Challenge Fund 30m of public support Partnerships Linking energy generation with energy use Identifying viable business models for local energy

6 Smart Local Energy Systems Local Energy Challenge Fund Technology Hydrogen Circular economies Approach and partnership Fuel pricing tariffs Working with suppliers Motivation Fuel poverty Carbon reduction Grid curtailment

7 Round 1

8 Round 2

9 Smart Local Energy Systems Local Energy Challenge Fund Pilot projects How do we mainstream these approaches? How do we ensure learning and replication? How do we support further innovation in the field?

10 Energy Masterplanning Euan Dobson

11 Prioritising Existing projects ideas some good, some bad, some too early, some in the wrong place Energy Masterplanning enables a structured sorting/filtering of projects Sets a foundation for a programme of decentralised energy development for an area

12 ... towards a local energy network WHY? Strategic Approach Stakeholders engaged and sharing thoughts and ideas Produces a shared plan which can be implemented as a programme

13 Where does it fit in the process

14 What needs to be done?

15 Why? It works London s progress underpinned by structured energy masterplanning approach It gives a structure to discussions about planning, network connections and funding It is a tool for engaging stakeholders It supports discussion about phasing of projects It integrates thinking around existing and new developments

16 What might go awry RISKS Strategic Intent made public WHO PAYS there is a cost to detailed energy masterplanning WHO OWNS THE PLAN Steering groups and delivery plans...

17 Links and Support Key Links to further information on Page 25 Supported by emerging Scottish Government Energy Policy Potential funding can be discussed with SE LCIP

18 Levenmouth Community Energy Project CARES Conference 2017 Fife means business.

19 Levenmouth project overview Demonstrate how green hydrogen can tackle two of Scotland's biggest energy challenges - low carbon transport and energy storage Project partners: Fife Council, Bright Green Hydrogen & Toshiba Local Energy Challenge & Transport Scotland funding Fife means business.

20 Project Objectives Linking local energy demand with local renewable energy generation Overcoming barriers to grid capacity issues Trialling innovative low-cost modular green hydrogen equipment Applying energy storage & active network management Identifying economic opportunity new skills & supply chain opportunities Generating community benefit Fife means business.

21 Technology Scope Increase in renewable generation wind & solar PV Increase in buildings on micro grid network Hydrogen production, storage & conversion Three hydrogen refuelling stations Energy flow managed by Toshiba Control System - H2EMS Hydrogen transportation Fleet of 17 vehicles Rural hydrogen feasibility Fife means business.

22 Combined strength of partnership Technological: Hydrogen & Renewable Energy technologies Vehicle technologies, inc. operation & maintenance Fuel management & in-vehicle system techologies Smart systems & energy balancing Regulatory planning; building control; health & safety Civils/Construction Commercial Community/education Fife means business.

23 Fife means business. Building in resilience Combined renewable energy generation Solar PV provides top-up electricity when little or no Wind Hydrogen stored & converted to electricity at times when onsite wind & solar generation is low Stored hydrogen offsets intermittency of renewable generation & improves self-sufficiency of business park Control System forecasts renewable generation & electrical demand using local weather, historical & operational data Smart grid runs parallel to national grid with seamless power switching Vehicles can run on traditional fuel source if no hydrogen

24 Tracking performance Toshiba control system can compare performance of business park & vehicles 5 years of data gathering Kangoos (battery & fuel cell) vs dual fuel Transits & Refuse Trucks (diesel/hydrogen) combustion engine Adapted fuel measurement & in-vehicle systems to monitor hydrogen performance Comparing electrolyser technology PEM vs Alkaline Comparing compressor & storage performance Different contractors at Methil & Bankhead Logan Energy & BOC/Linde Fife means business.

25 Opportunities for replication Creation of a grid island at a business park a model for other business parks to follow Low-cost, transportable hydrogen refuelling modules Refuse trucks World First other LAs now following Demonstration of hydrogen deployment, including its use for energy storage in a smart grid context Project s Learning Data Repository open to relevant bodies Fife means business.

26 Let s Build a Hydro! How hard can it be? Carol Thomas Community Project Manager

27 Background Small Community less than 200 people 30 minutes to nearest school An hour s drive to nearest town DIG Started Hydro Project in 2012 Objective long-term sustainability of community River had a Hydro on it until 1950s River is the community water supply Hydro scheme will be on Forestry Land

28 Time line Feasibility Study (CARES Funded) 09/12 05/13 Permissions granted Grid Connection Offer 2013* CAR Licence 2013** NFLS Application 2014 Planning Consent 2014 FiT Pre-accreditation 2015 Discoveries *Grid Connection offer only guarantees 50kW **CAR Licence only ½ granted Grid Curtailment was very real De Minimis!

29 Our solution Active Network Management What it means Sharing someone else s Grid Connection Capacity Adding 9 18 months to the project Adding Complexity Ruling out normal funders Riding the mother of all roller coasters! What it costs 200k 1m additional capital cost depending on choices/options 20k - 25k extra operating expenses p.a. Lots of additional dependencies Hair loss/premature greying Constant attention More than you think!

30 Lessons Learnt Ask And that means what? Why? How much? What else will you want/need? Make sure that you have people who are committed, persistent and determined Don t assume anyone else is checking Sparky geeks talk a funny language you need a translator! It s OK to get annoyed (angry) The community will struggle to understand the issues LES/CMS/Ricardo/SIS are amazing! You will have to jump through more hoops than you think

31 River Avich

32 Smart Local Energy Systems - discussion There are four themes to discuss: 1. People: consumer and community How to engage local people 2. Technical challenges What hurdles remain 3. Local Energy Plans How do we start the strategic process 4. Partnerships Involving the right people in the process Using the flipcharts, think about challenges and solutions of each theme. In doing so, consider definitions of smart, local systems and what would be most helpful