Advice Notes on Hydro Technology Economics for the NPA Region

Hydro

The Advice Notes aim to provide introductory material for entrepreneurs, startups and SME’s, considering to enter into the renewable energy sphere and based in the NPA regions partners to GREBE. The scope of the Advice Note covers regional, trade and industry, renewable energy (RE), technology information from Ireland, Northern Ireland, Scotland, Iceland and Finland. Different partner regions have different level of deployment of the various RE technologies covered by the Advice Notes. Thus, the level of information will vary depending on the level of deployment for each technology. For example, wind is not deployed on a large scale in North Karelia (Finland); however, it is widely deployed in Scotland, Ireland and Northern Ireland.

Full details are available on the GREBE website:

http://grebeproject.eu/wp-content/uploads/2018/07/GREBE-Advice-Notes-Hydro.pdf

The focus of the Advice Notes is on regional information of some of the main economic characteristics sited as imperative, when making an informed choice, regarding which RE technology may be the optimal choice for a new business venture:

  • Costs and economics associated with the relevant technology
  • Support schemes available, relevant to the technology
  • Government allowance/exemptions, relevant to the technology
  • Funding available for capital costs of the relevant technology
  • List of the relevant to the technology suppliers/developers, with focus on local/regional, suppliers/developers and the products and services they offer.

Hydro2

Hydropower is of the most reliable and cost-effective methods to generate electricity, as it can immediately respond to variations in electricity demand meeting both base-load and peak-load demand. The key advantage is that hydro power provides a steady and secure source of electricity supply. Furthermore, it very highly efficient (from 70 to 90%), has a long life span and attractive energy pay-back ratio. Other benefits of hydro are that it is a largely predictable resource of renewable energy (the annual generation can be predicted using historical rainfall data/catchment flow data).When considering the payback period for SHP, account should be taken of the lifespan of the system.

A general SHP project cost level is very difficult to predict as they are very project specific contingent on the local surroundings, hydro-technical constructions, turbines and electrical equipment. Small-scale hydropower uses water flowing through a turbine to drive a generator that produces electricity. The amount of a hydropower installation’s potential power output (kW) is directly related to two key variables:

Head – The vertical distance between the water level at the intake point and where the water passes through the turbine. Hydro projects can be categorized into three categories according to the existing head.

  • Low head – up to 10m
  • Medium head – 10m to 50m
  • High head – greater than 50m.

Flow rate – the volume of water flowing through the turbine per second, measured in litres/second (l/s), or cubic metres/second (m3 /s).

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First Ökofen Pellematic Condens_e CHP-unit in Finland

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The first Ökofen Pellematic Condens_e CHP-unit in Finland has been installed to Sirkkala Energy Park at Karelia University of Applied Sciences. The nano scale CHP (combined heat and power) unit produces energy with a condensing pellet boiler and an integrated Stirling engine. The whole unit requires only 1.5m² of floor space. The CHP unit is installed as part of Sirkkala Energy Park’s hybrid energy system that produces heat and electricity for Energy Park and for two elementary schools. This CHP unit is already connected to Fronius Symo Hybrid inverter, which will be connected to a small array of Panasonic HIT pV -panels. When battery storage is added to this system it will be a true standalone system.

Ökofen Pellematic Condens_e CHP-unit is designed for 6mm pellets, but it will run with 8mm pellets. The unit has a nominal thermal output of 9kW and 600W of electricity, but it can modulate the production between 3-13kW thermal and up to 1kW electricity. Unit size is ideal for single houses and requires only a little maintenance, just some brushing and vacuuming for pellet boiler and heat exchangers. The Stirling engine is nearly maintenance free.

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With the Pellematic Condens_e it is possible to generate electricity and heat for your own consumption. Economically, at least in Finland, the electricity generated should primarily be used at home and only the excess available electrical energy should be fed back into the public electricity grid.

The Integrated Microgen Stirling engine produces AC power at 50Hz from the thermal energy the pellet boiler produces. The electricity production is based on a thermal gradient, so the efficiency is dependent on the temperature difference of returning water flow from the hydraulic heating circuit. The cost of the unit is approximately €23,000, excluding the possible requirement for hydraulic components or larger-scale fuel storage.

The third energy market package agreed between EU and EEA/EFTA states

The Third Energy Market Package – EU energy market rules, were incorporated into the EEA/EFTA Agreement last week. Norway and the EU are closely connected through the energy market – by including the Third Energy Market Package into the EEA/EFTA Agreement, Norwegian actors are secured access to the EU-market. 

NSP 18-05-2017

The aim of the Third Energy Package is to improve the functioning of the Internal Energy Market. The package separates energy supply and generation from the operation of transmission networks, and strengthens the independence and cooperation of energy regulators. It also covers cross-border cooperation between transmission system operators and increases transparency in retail markets to benefit consumers. The Joint Committee Decision (JCD) contains substantial adaptations necessary for the participation of the EEA EFTA States in the Internal Energy Market. The approval of the Third Energy Package – by both sides – is the result of constructive discussions between the EU and the EEA EFTA States.

25th anniversary – The EEA Joint Committee provides a forum for the EEA EFTA States and the EU to exchange views and take decisions by consensus to incorporate EU legislation into the EEA Agreement. The meetings last week marks the 25th anniversary of the signing of the EEA Agreement since the first one in Porto, Portugal. The Agreement brings together the EU and EEA EFTA States in a Single Market, ensuring legal homogeneity. Since its entry into force in 1994, a lot of  acts have been incorporated.

EEA – The European Economic Area (EEA) brings together the EU Member States and three of the EFTA States (Iceland, Liechtenstein and Norway). It was established by the EEA Agreement, an international agreement which enables these three EFTA States to participate fully in the Single Market. The objective of the EEA Agreement is to create a homogenous European Economic Area. All relevant EU legislation in the field of the Single Market is integrated into the EEA Agreement so that it applies throughout the whole of the EEA, ensuring uniform application of laws relating to the Single Market.

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Renewable energy sector – The Third Energy Package Agreement between EEA/EFTA and EU is also of importance for the renewable sector in Norway – this means that there will be a close connection to the EU renewable energy market.

White paper on New Norwegian energy policy

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The Norwegian government has this spring presented a White Paper on energy policy – ‘Power For Change – An Energy Policy Towards 2030’. The main message is that security of supply, consequences for climate and economic growth must be considered together to secure an efficient and climate friendly energy supply.  17 years have passed since the Parliament last received a broad overview of the development, status and perspectives of our national energy supply. Since the last White Paper in 1999, the energy markets and the policies of the countries around us have changed considerably. There now exists an international commitment to enhance efforts on emission reductions and climate adaption.

The renewable energy resources and a well-functioning energy sector are competitive advantages for Norway. An efficient energy market and access to reliable and clean renewable energy is crucial for a climate-friendly energy supply. The new Norwegian energy policy will enable increased use of renewable power in new areas.

The government wants the Norwegian energy supply to be the basis for continued growth and welfare. The new Norwegian energy policy would focus on four areas.

1. Enhanced security of supply

The societies focus on security of supply is growing. The government aims to uphold a satisfactory security of supply also in the years to come – and wants to make sure that market solutions enhance the flexibility of the energy system. The goal is to pursue a strengthened Nordic energy cooperation. The government wants a robust power transmission system on all levels, and will work for better coordination between transmission, consumption and production. New technology and the use of smart management systems will contribute to improved security of supply in the future.

2. Efficient production of renewables

Norway is blessed with huge renewable resources and the opportunity to make use of them. The governments energy policy should enable profitable production of renewable power in Norway.  The efforts in developing and using new technologies for renewable energy will continue. Stronger integration with other energy markets is important to maintain the value of Norwegian renewable resources. Therefore, the government aims to increase connections with European energy markets. The regulatory framework will be changed so that others than the state-owned TSO Statnett may own and operate interconnectors. To avoid reduced values of our existing renewable production, the government will not introduce new targets under the Green certificate system – and will also make the licensing process more efficient.

The government wants a long-term development of profitable wind power in Norway. The introduction of a national framework for wind power will contribute to dampen conflicts and contribute with appropriate choices of locating wind power.

3. More efficient and climate-friendly use of energy

The government wants to alter the focus from supporting mature production technologies towards innovation and the development of new energy and climate solutions. Our national agency for the support of green energy and energy efficiency, Enova, is our main instrument in this work. Enova’s overarching aims are reduction of climate emissions, strengthening security of energy supply and the development of technologies that in the long term contribute to lower climate emissions. The government has recently entrusted Enova with the responsibility of contributing to reduce climate emissions from transport. The development of new energy and climate technologies in the industrial sector will continue to be a main area of Enovas work. The government is proposing an ambitious national objective for energy efficiency.

4. Economic growth and value creation through efficient use of profitable renewable resources

The energy sector creates substantial values based on Norways renewable energy resources.

The use of renewable energy also enables value creation in other industries and sectors. The government will facilitate the development of our competitive advantages from deploying our renewable energy resources. The government proposes a new law that will enable industrial owners of hydropower to access predictable supplies in the future.

Future value creation based on our renewable resources is contingent on our ability for innovation and knowledge development. The government aims to achieve a smooth employment of tools from different institutions and innovation programs – building on the strategy “Energy 21” which is jointly developed by the industry, research institutions and public authorities.

Renewable energy focus

For the GREBE Project it is interesting to notice that 3 of 4 policy headlines in the new energy policy – directly focus on Norway’s renewable energy resources and how to make use of them and technological innovations to create renewable business.