How to deliver a renewable energy project. Jemma Benson CO2Sense

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Bruno Wesley Sanders
5 years ago
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1 How to deliver a renewable energy project Jemma Benson CO2Sense

commercial funding packages up to 750,000 Support for the woodfuel sector:

2 CO2Sense Helping businesses to prosper in the low carbon economy Support for regional renewable electricity: specialist support larger schemes over 50kW commercial funding packages up to 750,000 Support for the woodfuel sector: specialist support (supply & demand) commercial funding demonstration projects

3 Contents Options appraisal Feasibility Suppliers Planning and regulation Funding Operation and Maintenance

4 Options Appraisal What do you want to achieve? Expand you business and make money Reduce your carbon footprint Reduce the impact of rising fuel prices? Save money Maximise all energy saving opportunities before considering renewable energy if you want to save money New financial mechanisms FIT and RHI will make it easier to make money from renewable energy

5 Options Appraisal Resource assessment Wind speed Type of land available, space, river, constraints South facing roof Access to a biomass fuel

6 Feasibility Solar PV Solar Thermal Biomass Heat Biomass CHP Wind Hydro Anaerobic Digestion Example South facing roof South facing roof High constant heat demand, access to reliable biomass source High constant heat & elec demand, access to reliable biomass source Spacious sites with a good wind resource Location Variable? Fuel? Location dependent? On site biomass source Cost HIGH LOW MED HIGH MED HIGH HIGH O+M LOW LOW MED MED LOW LOW MED

Suppliers Feasibility assessment Independent assessment The technology best for you and not for the supplier Sense check the information you are

7 Suppliers Feasibility assessment Independent assessment The technology best for you and not for the supplier Sense check the information you are provided Technology and installation provider Microgeneration Certification Scheme Quality and experience Yorkshire and Humber Microgeneration Partnership

8 Planning Do you need planning permission? Will there be a visual impact? Will there be an ecological impact? Will there be a noise impact? Consult your local planning authority- PD Enquiry Permitted development orders apply for domestic only- consultation currently underway to extend to businesses

9 Regulation Will it need permitting? Hydro Abstraction licence Environment Agency Biomass installations Emissions? Environment Agency or Local Authority Waste regulations Environment Agency Grid connection Meet YEDL regulations Amend import to import and export connection

Funding- Feed in Tariff (FiT) Started on 1 st April 2010 Renewable Energy Cash back Small Scale <5MW Eligible Technologies Wind Turbines, Solar Photovoltaic Hydroelectric, Anaerobic Digestion Fixed

10 Funding- Feed in Tariff (FiT) Started on 1 st April 2010 Renewable Energy Cash back Small Scale <5MW Eligible Technologies Wind Turbines, Solar Photovoltaic Hydroelectric, Anaerobic Digestion Fixed Payment- Generation Tariff All electricity generated, regardless of where it is used Dependent on scale & type of generator Tariff Lifetime (20-25yrs) Inflation linked Tariffs alter depending on year of deployment

Funding- Feed in Tariff (FiT) Unused electricity exported to grid- Export Tariff Offered 3p/kWh exported Certification <50kW approved by Microgeneration

11 Funding- Feed in Tariff (FiT) Unused electricity exported to grid- Export Tariff Offered 3p/kWh exported Certification <50kW approved by Microgeneration Certification Scheme 50kw to 5MW generator will need to apply through Ofgem Register Energy supplier will register installation onto FiT Register and then...pay you the tariff

12 Funding Business Case 11kW wind turbine Time to develop = 1 year Planning permission? = Yes Total capital cost 53,000 Total kwh generated a year Generation Tariff from FIT Export Tariff from FIT Cost avoided from not purchasing from grid Payback Carbon savings 35,653kWh 9,519 ( 0.267*35,653kWh) 1,059 ( 0.03* 17,826kWh) 1,782 ( 0.10*17,826kWh) 4.2 years 15T CO2 saved per year

13 Feasibility 3MW wind turbine Time to develop = 2 years + Planning permission? = Yes Total capital cost 3,000,000 Total kwh generated a year Income from FIT Income from 50% grid sales Payback Cost avoided from not purchasing from grid Carbon savings 7,500,000kWh 33,750 ( * 7,500,000kWh ) 112,500 ( 0.03 * 3,750,000kWh ) 6.6 years 375,000 ( 0.10 * 3,750,000kWh ) 3,225T CO2 saved per year

14 Funding Business Case 3kW Solar PV Time to develop = < 6 months Planning permission? = No (?) Total capital cost 10,000 Total kwh generated a year 3,000kWh Generation Tariff from FIT 1,239 ( * 3,0000kWh ) Export Tariff from FIT 45 ( 0.03 * 1,500kWh ) Cost avoided from not purchasing from grid Payback Carbon savings 150 ( 0.10 * 1,500kWh ) 6.9 years 1.3T CO2 saved per year

15 Feasibility 15kW Wood Chip Boiler Using waste wood produced by the company (EA compliance) Time to develop = 6 months Planning permission? =?? Total capital cost 10,000 Total kwh generated a year 15,000kWh Income from Renewable Heat Incentive from 2011 Income from grid sales ( 0.09 kwh * 15,000kWh) Payback Cost avoided from not purchasing from grid 4.7 years 750 ( 0.05 * 15,000kWh) Cost avoided from not disposing of waste?? Carbon savings 285T CO2 saved per year

properties to receive a Premium Phase 2 domestic sector Autumn 2013- integrate

16 Funding- Renewable Heat Incentive (RHI) Commitment 860m to 2014 Parliamentary approval - July 2011 Phase 1- non-domestic sector Tariffs for non-domestic properties Domestic properties to receive a Premium Phase 2 domestic sector Autumn integrate domestic into RHI tariff system New technologies added? Scheme open ASAP after approval given

providing they meet criteria Eligible Technologies Biomass, Ground Source Heat Solar Thermal, Biomethane

17 Funding- Renewable Heat Incentive (RHI) Administered by Ofgem Accreditation Simple Systems (<45kW) approved by MCS Complex- 2 stage process Installations commissioned after 15 th July 2009 will be eligible providing they meet criteria Eligible Technologies Biomass, Ground Source Heat Solar Thermal, Biomethane Useful Heat Generation Tariff Useful heat generated Dependent on scale & type of generator Tariff Lifetime of 20yrs

18 Funding Grants are restricted with new financing tariffs FIT and RHI New funding mechanisms with the arrival of the FIT and RHI Financial support provided in return for proportion of the FIT value More specific loans on offer

19 Operation and Maintenance Ensure maintenance costs are included in your feasibility assessment Accredit your technology with Ofgem to receive your FIT/RHI entitlement Choose a technology with spare parts and local maintenance engineers Companies are on hand to do it all for you!

20 Summary Options appraisal Feasibility Suppliers Planning and regulation Funding Operation and Maintenance

21 Questions to ask Why am I doing this? Lifetime of the technology? Does the technology come with guarrantees? What capacity factor have been used in the calculations? Check your wind speed - Support on offer

22 Jemma Benson Renewable Energy Programme Manager

Renewable Energy - A technology overview and the new Feed in Tariffs. Jos Mister Energy Saving Trust

Renewable Energy - A technology overview and the new Feed in Tariffs Jos Mister Energy Saving Trust Overview Renewable Technology Overview Generating electricity Generating heat Feed in Tariffs Clean Energy