The Business Case for Small Wind Energy - Meitheal na Gaoithe

whirrtarragonΗλεκτρονική - Συσκευές

21 Νοε 2013 (πριν από 3 χρόνια και 9 μήνες)

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Tullamore Court Hotel

17th May 2013

Grattan Healy

MnaG Workshop Presentation

Contents


Objective and scope of

Embedding Sustainability


study


Authors


Methods and constraints


Main findings


Conclusions


Action Plan

Objective of Study

BUILD THE BUSINESS CASE FOR SMALL WIND
ENERGY

(defined as between 500kW and 20MW scale)

Scope of Study


Wind in Ireland
-

the context


Small scale wind energy
-

current status


Winds of change
-

policy and technology developments


Challenges
-

various obstacles to small scale wind


Opportunity
-

potential future for small scale wind


Way Forward
-

supportive policies and actions

Authors

Prepared by:

consulting engineers with extensive wind energy experience
(Jennings O

Donovan)

Supported by:


economics consultant (EPEC)

grid consultants (Mullan Grid)


tax specialists (Porter & Co)

Methods and constraints


Summary of Ireland

s energy status, based primarily on
SEAI data


Project financial modelling based on extensive
experience, ranging from 500kW to 50MW


Financial viability comparison


Economic comparison between fossil & wind generation


Qualitative analysis of benefits of small wind energy


Policy analysis, with input from Meitheal na Gaoithe


But, funds not available for full cost benefit analysis

Main findings 1.

Wind is cheaper than fossil in all scenarios

Main findings 2.

Small wind has a natural cost disadvantage

Main findings 3.

But small wind brings natural
technical advantages

Benefits of embedded small wind generation to power system include:



Reduced losses



Deferral of network investment



Smart grid technology



Improved utilisation of existing network capacity



Improved generation control to provide necessary system ancillary
services

Small wind can provide these benefits in ways large wind farms can

t

Main findings 4.

Small wind also brings natural
economic advantages

The economic benefits of small wind energy projects include:



Additional income to rural landowners



Benefits in kind



Community benefit schemes



New jobs



Indirect sources of income



Local ownership of shares in the project



Potential for community
-
owned energy projects


The current process
for wind projects is
tortuous

Main

findings 5.

Conclusions

1.
Small wind helps social acceptance, delivers sustainable communities

2.
But, current process for wind energy projects is unfit for purpose

3.
Grid access is the major source of cost & risk

4.
Consequently, it can take 15 years or longer to deliver a wind project

5.
Incentives undercut by other measures
-

curtailment damages REFIT

6.
Wind projects have free fuel but high CAPEX, so harder to finance

7.
Small wind is half of current capacity and fundamentals are good

8.
But it is endangered because of misaligned policy, targets at high risk

Action Plan 1.

1.
Transparency of electricity bills to be improved by the CER

2.
Planning Forum to be established with input from wind industry

3.
Reassess legislation setting thresholds for EIAs for wind farms

4.
Finance to adjust EII reliefs for wind projects

5.
Discussions with EIB on a specific fund for small wind projects

Action Plan 2.

5.
Transpose Article 13, RE Directive to reduce administrative barriers

6.
Curtailment and constraint to be compensated fully at REFIT price

7.
Three year time limit on grid connection from application, for projects
with planning, where connection financed by its owner

8.
Support scheme automatic on achieving planning & grid connection

9.
Consistent County Wind Strategy Plans & standardization of scope &
methodologies of environmental studies by all Local Authorities

Publication

Report and Annexes fully completed

Limited number of copies printed for policy makers and stakeholders

Launch planned to coincide with Global Wind Day, June 15th

Report and Annexes will be put on Meitheal na Gaoithe website then

Considering

Print on Demand


service, to enable interested parties to
purchase printed version directly online

Persistence

according to

Calvin Coolidge

Nothing in the world can take the place of Persistence.


Talent will not; nothing is more common than unsuccessful men with talent.


Genius will not; unrewarded genius is almost a proverb.


Education will not; the world is full of educated derelicts.


Persistence and determination alone are omnipotent.


The slogan 'Press On' has solved and always will solve the problems of the human race.

Thank you

Study and Annexes

will be available soon at:

www.mnag.ie