Presentation is loading. Please wait.

Presentation is loading. Please wait.

Transition Falmouth & Penryn Gage Williams OBE MACantab MIET Renewable Energy Office for Cornwall (REOC) 01208 841378.

Similar presentations


Presentation on theme: "Transition Falmouth & Penryn Gage Williams OBE MACantab MIET Renewable Energy Office for Cornwall (REOC) 01208 841378."— Presentation transcript:

1 Transition Falmouth & Penryn Gage Williams OBE MACantab MIET Renewable Energy Office for Cornwall (REOC)

2 2 DECC Amendments Energy Act – 2 amendments to introduce: Energy Act – 2 amendments to introduce: a.£400/MWh feed-in tariff for electricity from microgeneration (50kW or less) b. Renewable Heat Incentive of £20/MWh b. Renewable Heat Incentive of £20/MWh If accepted, will increase demand for microgeneration: If accepted, will increase demand for microgeneration: 50 kW wind-turbine revenue will jump from £24,000 to £80,000 pa 50 kW wind-turbine revenue will jump from £24,000 to £80,000 pa Water mill jumps from £7,200 to £24,000 Water mill jumps from £7,200 to £24,000 Biomass CHP & Ground Source Heat Pumps will be paid for heat Biomass CHP & Ground Source Heat Pumps will be paid for heat

3 3 Sources REOC 2002, Bioregional: creating low carbon communities Based on 12.4 tons CO2 per person: one tonne of heating oil when burnt emits 3.16 tons CO2 Based on 12.4 tons CO2 per person: one tonne of heating oil when burnt emits 3.16 tons CO2 Population of Fal/Penryn is ~30,000 Population of Fal/Penryn is ~30,000 Emissions activity% Tonnes oil equivalent per person Fal/Pen toe food22%0.9027,000 building shared infrastructure19%0.7522,500 energy use in home17%0.6820,400 personal transport14%0.5416,200 waste and consumer goods13%0.5115,300 using shared services12%0.4312,900 home infrastructure3%0.144, % ,500 Fal/Pen tonnes of oil equivalent p.a.

4 4 Ground Source Heat Pumps (GSHP) Cornwall leads the GSHP field Cornwall leads the GSHP field Ideal for new houses or as replacement boiler for 20% of old houses Ideal for new houses or as replacement boiler for 20% of old houses Fal/Pen has 13,200 houses; 2,640 to have GSHP Fal/Pen has 13,200 houses; 2,640 to have GSHP Typical cost £7,500 less £2,500 grant Typical cost £7,500 less £2,500 grant Net cost of £1,500 more than new oil boiler Net cost of £1,500 more than new oil boiler Put in 4 MWh of electricity; get back 16 MWh heat Put in 4 MWh of electricity; get back 16 MWh heat Get annual refund of £320 with Renewable Heat Incentive if it is £20/MWh Get annual refund of £320 with Renewable Heat Incentive if it is £20/MWh

5 5 Kensa’s new heat pump design Domestic Ground Source Heat Pump A Slinky

6 6 GSHPs Can be horizontal if space is available or vertical or sunk in a lake Can be horizontal if space is available or vertical or sunk in a lake Most effective if pump’s electricity is renewable – 4:1 energy gain Most effective if pump’s electricity is renewable – 4:1 energy gain

7 7 Domestic Energy Average Cornish house uses 4 MWh electricity & 16 MWh for heating/hot water Average Cornish house uses 4 MWh electricity & 16 MWh for heating/hot water With GSHP this becomes 8 MWh electricity plus £320 annual RHI refund sufficient to buy 3 MWh of electricity at ~10p/kWh With GSHP this becomes 8 MWh electricity plus £320 annual RHI refund sufficient to buy 3 MWh of electricity at ~10p/kWh Leaves 5 MWh electricity to find RE supply if the 2,640 houses with GSHPs are to go 100% green energy Leaves 5 MWh electricity to find RE supply if the 2,640 houses with GSHPs are to go 100% green energy

8 8 Micro Wind-Turbines Not more than 50kW as earns £400/MWh compared to larger turbines’ ~£120/MWh Not more than 50kW as earns £400/MWh compared to larger turbines’ ~£120/MWh Carland turbines are 400kW Carland turbines are 400kW 50kW far smaller –height of blade tip is 34m (110ft) only. New large turbines 440ft. 50kW far smaller –height of blade tip is 34m (110ft) only. New large turbines 440ft. Need to be >100m apart, best to cluster as cuts planning & hook-up and other costs Need to be >100m apart, best to cluster as cuts planning & hook-up and other costs Fal/Pen could lease a windy site perhaps in the Clay Area or use your own site rent free! Fal/Pen could lease a windy site perhaps in the Clay Area or use your own site rent free! But output = cube of the average wind speed But output = cube of the average wind speed 6 m/sec = 216; 8 m/sec = 512; 137% more 6 m/sec = 216; 8 m/sec = 512; 137% more

9 9 PGE 20/50 Wind-Turbine Ave wind 7m/sec 240 MWh pa earns £96k at £400/MWh feed-in-tariff Clay Area 8m/sec 280 MWh pa £112k pa

10 10 Micro Wind and GSHP The 2,640 GSHP houses needed 5 MWh renewable electricity to go 100% green The 2,640 GSHP houses needed 5 MWh renewable electricity to go 100% green 5 MWh would cost ~£500 at 10p/kWh (av domestic rate) 5 MWh would cost ~£500 at 10p/kWh (av domestic rate) Each micro turbine earns £96k gross, £75k net Each micro turbine earns £96k gross, £75k net Each turbine can provide the income required to buy 5 MWh for 150 houses with GSHPs Each turbine can provide the income required to buy 5 MWh for 150 houses with GSHPs 18 wind-turbines & 2,640 GSHPs would convert 46,560 MWh to green energy saving 4,084 toe 18 wind-turbines & 2,640 GSHPs would convert 46,560 MWh to green energy saving 4,084 toe Communal turbines get 50% capital grant reducing cost from £200k to ~£120k Communal turbines get 50% capital grant reducing cost from £200k to ~£120k Cost of a 150 th share is £800; GSHP cost is £1,500 after grant and oil boiler replacement is deducted Cost of a 150 th share is £800; GSHP cost is £1,500 after grant and oil boiler replacement is deducted 2,640 households would need to find £2,300 to save £2,000 pa they would have paid for 20 MWh 2,640 households would need to find £2,300 to save £2,000 pa they would have paid for 20 MWh 87% annual return! 87% annual return!

11 11 For the 80% without a GSHP For free domestic energy they need an income of £2,000 pa (10p/kWh) For free domestic energy they need an income of £2,000 pa (10p/kWh) The net £75k earned by a wind turbine could achieve this for 37 houses The net £75k earned by a wind turbine could achieve this for 37 houses Each house to buy 37 th share in a turbine costing £3,380 to earn £2,000 pa; 59% return pa Each house to buy 37 th share in a turbine costing £3,380 to earn £2,000 pa; 59% return pa Would need 285 wind-turbines; total 303 Would need 285 wind-turbines; total 303 Would require ~88 ha (220 acres) Would require ~88 ha (220 acres) Would generate 68,400 MWh green electricity saving 6,000 toe Would generate 68,400 MWh green electricity saving 6,000 toe Total 10,084 toe saved; 8.5% of Fal/Pen’s 118,500 Total 10,084 toe saved; 8.5% of Fal/Pen’s 118,500

12 12 How they might cluster The diagram shows area needed for cluster of 303 turbines (220 acres) 100m apart needs 88 acres; av wind speed 8.1m/sec

13 13 The Multiplier Effect ElectricityHeat/HotWtr Cost 4 MWh 16 MWh = £2,000 8 MWh £320 RHI refund = £480 8 MWh £320 refund + £500 div = £20 profit 150 shares at £800 £75k net £1,500 after grants etc Notes: Assumes domestic tariff is 10p/kWh; GSHP is installed in new build or replaces oil fired boiler; and 50kW wind turbine achieves 240 MWh for net £75k. £2,300 invested earns gross £2,020 per year if FIT is 40p/kWh & RHI is 2p/kWh Today 1 wind share GSHP

14 14 Micro-Hydro Schemes Fal/Pen has rich potential Fal/Pen has rich potential Argal Res 17m higher than College Res – could take 50kW micro-hydro Argal Res 17m higher than College Res – could take 50kW micro-hydro College Res to sea 64m another 50kW College Res to sea 64m another 50kW Helland Mill at head of Argal 15kW Helland Mill at head of Argal 15kW Total 115kW at 80% generates 806 MWh worth £320k pa saving 73 toe Total 115kW at 80% generates 806 MWh worth £320k pa saving 73 toe

15 15 Rural Solution – Micro Hydro River Dart 48kW uses weir, improves fishing & flood protection Can either use pipe to Francis Turbine or leat to water wheel

16 16

17 17 Tidal Schemes Tidal Schemes 2 sq km estuary between Penryn & Trefusis Point 2 sq km estuary between Penryn & Trefusis Point 3 metre average tide; 60 million tonnes of seawater every six hours 3 metre average tide; 60 million tonnes of seawater every six hours 20 tethered jetties + 50 kW Gorlov Vertical Turbines at 15% efficiency could generate 1,314 MWh earning £525,600 pa saving 116 toe 20 tethered jetties + 50 kW Gorlov Vertical Turbines at 15% efficiency could generate 1,314 MWh earning £525,600 pa saving 116 toe Jetties could create new moorings Jetties could create new moorings

18 18

19 19 Farm Biomass CHP Small biomass CHP plants designed to match the 50kW microgenerator limit Small biomass CHP plants designed to match the 50kW microgenerator limit Need 840 tonnes woodland & sawmill waste, miscanthus (16-20t/ha), waste wood Need 840 tonnes woodland & sawmill waste, miscanthus (16-20t/ha), waste wood Each generates 400 MWh electricity, 1,180 MWh thermal & 84 tonnes bio-coal Each generates 400 MWh electricity, 1,180 MWh thermal & 84 tonnes bio-coal Would collocate with schools, supermarkets, business parks, marinas, swim pool Would collocate with schools, supermarkets, business parks, marinas, swim pool If 11 had a plant, would generate 4,400 MWhe, 12,980 MWh thermal & 924 tonnes bio-coal If 11 had a plant, would generate 4,400 MWhe, 12,980 MWh thermal & 924 tonnes bio-coal If half the heat is sold for £15/MWh and the bio-coal for £300/t would earn £2,390,000 pa saving 2,005 toe pa (post chipping, haulage, harvesting) If half the heat is sold for £15/MWh and the bio-coal for £300/t would earn £2,390,000 pa saving 2,005 toe pa (post chipping, haulage, harvesting) Total saved to date is 12,229 toe (10.3%) Total saved to date is 12,229 toe (10.3%)

20 20 Farm Sized Biomass CHP Organics Biomass Energy CHP plant: Fuel: 840 tonnes woody mix incl miscanthus/SRC willow Capex ~£400k, Rural Dev Prog grant £140k O&M annual costs ~£65k Sale of CHP & Char ~£200k Net return of £135k on £260k investment

21 21 Counting the Cost Assuming an Operating & Maint cost of 20% pa, net income is £26,000,000 & crude payback is 22 months Installation takes five years NumberRE SystemCostMWhHeat MWhRevenueTOE Saved Planning£2,220, GSHP + Wind£6,120,0004,32042,240£2,572,8004,084 3Micro Hydro£600, £108, Biomass CHP£2,860,0004,40021,006£2,337,6542, kW Wind£34,200,00068,4000£27,360,0006,000 20Tidal/Gorlov£2,000,0001,3130£525, Totals£48,000,00078,70363,246£32,746,12012,229 Net Revenue after ~20% O&M £26,000,000

22 22 The Unknowns Will the Feed-in-Tariff be £400/MWh? It may reduce by 1% each year Will the Feed-in-Tariff be £400/MWh? It may reduce by 1% each year Will the RHI be £20/MWh? How will the heat be measured; must it be used? Will the RHI be £20/MWh? How will the heat be measured; must it be used? Will a cluster of 50kW wind-turbines no longer qualify as microgeneration? Will a cluster of 50kW wind-turbines no longer qualify as microgeneration? Planning constraints and hurdles – watch the new Planning Act Planning constraints and hurdles – watch the new Planning Act Will parishioners support transition? Will parishioners support transition?

23 23 The Benefits Puts about £26,000,000 into Fal/Pen each year (~£2,000 per home) Puts about £26,000,000 into Fal/Pen each year (~£2,000 per home) Creates reserve fund of £29m Creates reserve fund of £29m Cuts heating costs & offers chance to buy shares with dividends Cuts heating costs & offers chance to buy shares with dividends Eradicates/tackles rural & fuel poverty Eradicates/tackles rural & fuel poverty Achieves degree of energy security Achieves degree of energy security Saves ~38,640 tonnes CO2 per year Saves ~38,640 tonnes CO2 per year

24 24 How do you raise £48 million? Raise £20,000,000 equity preferentially from Fal/Pen over 5 years Raise £20,000,000 equity preferentially from Fal/Pen over 5 years Works out at ~£1,500 per household Works out at ~£1,500 per household 3,670 houses put money up in first year for £5.5m 3,670 houses put money up in first year for £5.5m Includes £1,500 for Ground Source Heat Pump Includes £1,500 for Ground Source Heat Pump Shareholders agree to 50% of dividends for first 5 years to be put back into Fal/Pen Ltd Shareholders agree to 50% of dividends for first 5 years to be put back into Fal/Pen Ltd Assumes 50% revenue for first year as wind & GSHPs generate as soon as they are installed Assumes 50% revenue for first year as wind & GSHPs generate as soon as they are installed

25 25 Self Funding for £48 million? No loan required based on £20 million equity, excellent rate of return Reserve of £29 million carried forward for repairs/replacements This is just one example; many ways of doing this Year Build Rate10% 22.5% Capex £k Equity £k 50% to Capex £k 50% to Sharehldrs Equity Return 15%23%34%45%58%77%87%102%116%130% Accum £k Loss/Profit

26 26Conclusions Each area will need a different RE mix Each area will need a different RE mix Feed-in-Tariff & RHI will lead to robust business plans for shareholders without going to banks Feed-in-Tariff & RHI will lead to robust business plans for shareholders without going to banks Priority for Fal/Pen burghers to buy equity, if not sold – offered outside Priority for Fal/Pen burghers to buy equity, if not sold – offered outside Biomass CHP will get double benefit Biomass CHP will get double benefit Feed-in-Tariff and Renewable Heat incentive offer great opportunity for Cornwall Feed-in-Tariff and Renewable Heat incentive offer great opportunity for Cornwall Would save 12,229 toe; 10.3% of Fal/Pen’s total saving 30,000 people £8,900,000 if oil returns to $147/barrel Would save 12,229 toe; 10.3% of Fal/Pen’s total saving 30,000 people £8,900,000 if oil returns to $147/barrel


Download ppt "Transition Falmouth & Penryn Gage Williams OBE MACantab MIET Renewable Energy Office for Cornwall (REOC) 01208 841378."

Similar presentations


Ads by Google