Workshop: THE ENERGY TRANSITION AND COMMUNITY POWER. Leire Gorroño

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1 Workshop: THE ENERGY TRANSITION AND COMMUNITY POWER Leire Gorroño RE Future, 2018 Edition Nordic Folkecenter for Renewable Energy 15 May 2018

2 1 Draw a symbol of your own local community. It can be a place, a monument, a building anything that represents your community. The only requirement is that the chosen symbol has to bring you positive feelings, memories, thoughts Don t forget to write the name of your community! (3 mins) 1

3 2 Present your drawing to your group. Introduce your community and the reasons for choosing that symbol. (2 mins/person) 2

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5 The Outskirts of Denmark Population change in Danish municipalities in Exodus to urban areas Aging population Lower income Loss of property values Less and less services 4

6 The Outskirts of Denmark There are no high-ways in the West coast of Denmark. Source: Google Maps. Lack of infrastructure Less job opportunities Difficulties to obtain mortgages Unattractive for young people and young families 5

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8 3 Write down the main concerns or problems of your local community. (2 mins) Present them to your group. (2 mins/person) 7

9 4 Draw and/or write the main resources of renewable energy and the potential for energy savings in your local community. (2 mins) Present them to your group. (2 mins/person) 8

10 THE CASE OF HVIDE SANDE 9

11 Ringkøbing-Skjern Municipality 3,077 inhabitants Hvide Sande Tourism and the harbour are the main economic activity producers. (approx. 6,000 summer houses) 10

12 Year 2011, 3 V MW wind turbines were installed in Hvide Sande. On land owned by the harbour. 80% owned by a community foundation, 20% owned by local residents. 11

13 What do the 3 wind turbines mean for Hvide Sande? Hvide Sande Nordhavn will get a land payment of 0.64 million EUR per year over 30 years, i.e million EUR. The community foundation will generate additional million EUR to be used for tourism and the harbour project. (Harbour project 19.5 million EUR) 20% commercially locally owned: private income. Economic stability, development, job creation, self-sufficiency... 12

14 Ownership models and their effect in local development Three 3 MW turbines 16 GWh/(year turbine) Investment 90 million DKK Annual land rent 4.8 million DKK 100% financed by bank loan Loan payback 7 years Annual benefits 8-10 million DKK million DKK Direct income for local development Municipal tax Total income for local development Community foundation Local company Municipal company Local residents 13

15 Community ownership of RE for improvement of infrastructure, creation of new jobs, for finance for local schools in rural areas, for taking care of elder and/or ill people, addressing poverty and limited energy access, for supporting local organizations, for environmental projects, for local public e-transport, etc. Provides benefits not just for a few investors but for everybody in the community so they can all see renewable energy as a local improvement. 14

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17 5 Draw and/or write the main local development projects that could get (financial) support from RE projects. (2 mins) Present them to your group. (2 mins/person) 16

18 Challenges for the energy transition and community power in Denmark Drawings by Anna Krenz

19 HISTORY AND CURRENT STATUS

20 Global leader in RE Wind energy 43% of the final electricity consumption in 2017 The highest installed capacity per capita of the world District heating 58% renewable energy 63% of households Solar thermal energy, power-to-heat, etc. 17

21 Energy Agreement of March 2012 Objectives: Economic development and stability. Achievement of climate targets. Transformation of the energy system into 100% RE. Intermediate goals: 2020 Renewable energy > 35% of the final energy consumption Wind energy = 50% of the final electricity consumption 2035 Electricity and heating sectors = 100% renewable % of the energy consumption = renewable energy 18

22 The Danish electricity system Until 1975 almost 100% dependency on oil After the energy crisis in 1970s, diversification of supply and energy efficiency Initially atomic energy had main priority, but the nuclear plans were cancelled in 1985 Decentralization of supply got priority with CHP and renewable energy Since 1980 the construction of conventional power plants is banned Strong AC and DC transmission cables to Sweden, Norway and Germany 19

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24 Grassroots Movement people became shareholders of wind cooperatives. Proliferation of district heating systems and CHP plants, owned by municipal companies or nonprofit consumer-owned cooperatives. Danish law determines district heating must be non-profit. 21

25 Decentralization of the electricity system 22

26 Danish district heating Population: 5.6 million District heating supplies 2.6 million households 63% of all households; >95% in the city of Copenhagen Ownership: municipal companies and non-profit consumer-owned cooperatives Source: ENS 23

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28 58% of the energy used in DH systems comes from renewable sources. In 2014, 68% of the energy was produced by CHP plants. 25

29 The solar district heating revolution 106 out of the 199 large solar heating & cooling plants in Europe are located in Denmark, this is, 53%. [1] [1] The latest available data on large SD&H installations in Europe. Provided by the Solar District Heating project on 9 July Project webpage link: 26

30 Challenges for community power Projects must be bankable! No auctions for community power projects with common good purposes! Limited access to land, competition with big players Privatization of DH? Power from Municipalities to central authorities? Lack of awareness Non-supportive policies, no target 27

31 Danish local communities have shown strong adaptation and innovation capabilities. They have found the existing opportunities within the given policies and legislation and have used those to develop the local energy systems, economy and society. 28

32 6 Write down the current situation for community power in your countries How common is it? Is there an interest for community energy? Can you name any projects of special relevance? (2 mins + 2 mins/person) 29

33 7 Write down the main challenges for development of community power projects in your local community. (2 mins) 30

34 8 Write down the main opportunities for development of community power projects in your local community. (2 mins) 31

35 9 Draw an stakeholder map. Reflect on: What stakeholders are working on community power in my local community, region or country? What stakeholders influence the implementation of community power projects? (4 mins) 32

36 10 Write down 3 possible actions/working lines to promote community power in your local community or country. (5 mins) 33

37 11 Share your last contributions and help each other improving the perspectives of community power projects. (15 mins) 34

38 12 Is there anything you would like to share with everyone? 35

39 FINAL REMARKS

40 Danish citizens have taken active participation in the transformation of the energy system. Small and medium scale CHP units and renewable energy have resulted in the decentralization of the electricity system. Social aspects of renewable energy projects are crucial for successful implementation. Renewable energy and energy efficiency are part of the national strategy for economic development and will be the key for the development of the rural areas. 36

41 Communities for RE RE for Development of Communities

42 Thank you! Leire Gorroño Nordic Folkecenter for Renewable Energy Nordisk Folkecenter