CHP project of Kuittila Power – Case Study

The CHP project of Kuittila Power was initiated by the entrepreneur/farmer interested to decrease the energy costs and produce own energy for the farm and co-located company. One of his staff and a development company introduced the solution. The reference site and a manufacturer were visited, after which a feasibility study was carried out.

As there was positive result, the investment project was initiated and 35% co-financing negotiated from the local authority. The manufacturer provided the technical planning, and investor took care of micro DH network construction and required connections (with the electricity company). A local constructor made the building construction.

The investment initiated in April, was ready in October 2012. The first winter included only test-runs, as there was no available high quality wood fuel. In spring, own fuel supply (with dryer solutions from the reference site) was established and plant started operating.

The first year included technical operations to improve the performance; technical support was received through the manufacturer. The plant is operating now a 3 year at a roll, and received significant status of small-scale CHP demonstration in the region, nationally and internationally.

For more details see:

http://grebeproject.eu/wp-content/uploads/2017/09/Small-Scale-Biomass-CHP-Kuittila-Power-Finland.pdf

 

 

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Power from Biomass project final seminar, Monday 11th June, Joensuu

KUAS

The Rural development programme co-financed Power from Biomass project completed its work in June 2018 after three years of renewable energy development in North Karelia, Finland. The project cooperating closely with GREBE in North Karelia, resulted in several new investments including two solar PV and energy storage systems in community buildings of Höljäkkä and Haikola in Nurmes. Project also established a regional network of 15 renewable energy demonstration sites.

The final seminar held in Joensuu, presented projects main outputs, latest developments in renewable electricity production, biomass-based small-scale combined heat and power, solar energy project of heat enterprises, and intelligent solar PV systems.

Project manager Antti Niemi from Pielinen Karelia Development Company PIKES Ltd. summarized the project results. The project established a regional demonstration network with 15 sites demonstrating renewable energy production systems. The Energiaraitti website presents the technical and economic information and live-information of solar PV systems. New production units established were mostly solar PV and some energy storages systems in farms, other rural enterprises and community buildings. The biomass-based renewable energy had a challenging business environment due to low price of fossil fuel oil. Despite, also some new biomass-based energy systems were established.

Project manager Kim Blomqvist from Karelia UAS presented the solar PV systems integrated into biomass-based district heating plants. Investments were made for 7 district heating plants with total annual production of 52 MWh. The heating plans were considered suitable for the solar PV as they have balanced electricity demand.

Marketing and product development manager Kimmo Tolvanen, representing regional energy company PKS, presented an in-depth overview of the energy system development in Finland and North Karelia. The main game changers in the energy system are expected to consist of wind and solar power production, energy storages and digitalization working all effectively together. The energy grid changes toward decentralised, intelligent and adaptive systems are evident. In addition, electricity markets are in transition, and new service developments are expected throughout the system from production to consumption.

Project coordinator Anssi Kokkonen from Karelia UAS presented the technical solutions of biomass-based combined heat and power production. The solutions included woodchip gasification plant (Volter Ltd.), Nano-chp Stirling engine (9 kWth + 0.6 kWe), fuelled by wood pellets (Ökofen).  Both solutions are demonstrated at Sirkkala Energy Park by Karelia UAS.

Project manager Toni Hannula from energy company ESE (Etelä-Savon Energia, Mikkeli) presented intelligent solar power systems. The smart energy transition project by Lappeenranta Technological University has generated an overview of the systems change. The ESE has been successful in establishing biogas fuel stations, and piloting intelligent solar PV systems with 48 hours production forecast and directing the production optimally depending on energy price (electricity spot-price optimizing) and production and consumption loads. The system is piloted in Lumme Energia Oy estates.

The Power from Biomass project developed as a diverse renewable energy project and delivered several new services and RE production sites were established. The project had an international element through cooperation and networks of the GREBE project.

Technology and knowledge transfer cases

Knowledge Sharing - Page 4

Transnational sharing of knowledge is a key element of the GREBE project and special focus of working package 7 in order to facilitate transnational effective knowledge transfer and collaboration in the RE business sector and to promote knowledge sharing and information exchange between actors in renewable energy supply and demand.

Two case reports are currently available on the transfer of technology and knowledge in the NPA:

Nordkraft – Northern energy expertise

Nordkraft is an energy group focusing on development, production and distribution of renewable energy. In addition, the group has power sales and other energy-related businesses. The business focuses on planning, construction and operating hydro and wind energy plants.

The energy business model of Nordkraft includes business operations in energy infrastructure planning, development, construction, operation, maintenance and trade. The focus on establishing and operating the systems, and avoiding or sharing the capital investment risks, provides growth opportunities. The long-term emphasis on local expertise and business diversity provides permanent jobs in the sector supports the local socio-economic development.

http://grebeproject.eu/wp-content/uploads/2018/04/GREBE-Technology-Transfer-Nordkraft-Northern-Energy-Expertise-February-2018.pdf

Knowledge sharing expert sessions with SME´s

The GREBE project arranged a possibility for the transfer of knowledge within the Northern Periphery area by hosting expert sessions with SME´s, associations and land owner representatives in the sector of renewable energy supply and demand. The sessions were part of the GREBE project meeting events hosted by the Fermanagh and Omagh District Council from 6th – 10th November 2017. Two experts, Saija Rasi and Veikko Möttönen from the GREBE partner organization Natural Resources Institute Finland (Luke) were available to the participants for one-to-one meetings on Wednesday 8th November.

Knowledge on two main topics were shared between the experts from Finland and SME’s:

  1. Biogas production and utilization possibilities in rural areas
  2. Further processing of sawn wood and side streams

The experts were also available during a networking event for businesses from Northern Ireland and the Republic of Ireland giving the opportunity to engage with one another or opening up the possibility of joint working opportunities in the future.

http://grebeproject.eu/wp-content/uploads/2018/04/GREBE-Knowledge-sharing-expert-sessions-with-SMEs-March-2018.pdf

Further technology transfer cases are currently under development supporting the activity towards a guideline supporting enterprises in introducing new to market energy solutions.

Support the transnational transfer of knowledge and technology, the Renewable Business Portal provides a platform to demonstrate the full potential of the renewable energy (RE) sector and showcase innovations in RE technology.

Regional Heat Study Workshops – Tuesday 15th May (Ballinasloe) & Wednesday 16th May (Ballybofey)

GREBE - WDC Regional Biomass Study Workshops - May 2018

The Western Development Commission (WDC) commissioned a regional renewable energy analysis on the use of biomass as a local contribution to the national renewable heat target and develop a range of actions to support the development of renewable energy in the region under the Action Plan for Jobs.  

The aim of this study is to inform how the WDC can support and develop biomass use in the Western region.  This study is now complete and RE:HEAT will present their findings in two workshops.

Tuesday 15th May, 2.00pm at the Shearwater Hotel, Ballinasloe, Co. Galway

Wednesday 16th May, 10.00am at Jacksons Hotel, Ballybofey, Co. Donegal

Participants will have the opportunity to engage with RE:HEAT consultants during the workshop and informally during the workshop lunch.

Agenda for Ballinasloe (Tuesday 15th – afternoon session)

Agenda1

Agenda for Ballybofey (Wednesday 16th – morning session)

Agenda2

Register your interest in attending via email to tomasmahon@wdc.ie or paulineleonard@wdc.ie or by phone to the WDC offices at +353 94 986 1881.  Closing date for registration is Thursday 10th May 2018.  While these events are free of charge, registration is required.

A summary of this report can be found here

Heat Entrepreneurs’ meeting, April 4th Kontiolahti, Finland

KUAS

Annual meeting of the Finnish Heat Entrepreneurs in North Karelia was organised by the Finnish Forest Centre in April 4th Kontiolahti. The event focused on the energy wood markets and current development challenges, new harvesting method trials, drying of wood by using excess heat of energy plants, and socio-economic impacts of local heat entrepreneurships. After the meeting, participants had a visit to the Kontiolahti 1.5 MW heating plant equipped with a 7.6 kW solar power system.

Adjunct professor Yrjö Nuutinen from LUKE introduced latest research on the new corridor thinning method. The method – with 1-2 thinning corridors harvested in different formations – has been earlier applied in Sweden, US and Canada. Now the corridor thinning is studied and tested for pine dominated first thinning stands in Finland, aiming that it will be a generally accepted thinning method and it fulfills the forest management requirements of Forestry Centre.

The latest results on the socio-economic impacts of Eno Energy Cooperative were presented by GREBE partner Dr Lasse Okkonen from Karelia UAS. The total employment impacts of the Eno Energy Cooperative in 2000-2015, were approximately 160 FTE’s and total income impact in the same period about 6.6 MEUR. During the period of highest oil prices, over 50% of the benefits resulted from heating cost savings of both private households and public sector.

Bioeconomy expert Urpo Hassinen, from the Finnish Forest Centre, presented the latest results on the firewood drying by utilising excess heat of the heating plants. There was potential, especially when existing infrastructure could be utilised. Drying of woodfuel could also compensate the decreasing heat demand resulting from closure of public estates in rural areas.

CEO Janne Tahvanainen presented the market outlook from an industry perspective. The market fluctuations, caused by the weather challenges in last summer and autumn, as well as varying imports from Russia, were discussed. Weather challenges were considered a most important factor affecting current markets. For instance snow damages have increased harvesting volumes in northern part of North Karelia, and moist summers and autumns have affected biomass drying. Impacts of weather conditions on RE markets are being further investigated through the GREBE project during this spring.

New support scheme discussed at the Vaasa Energy Week

Fortrum Norway

In Finland, the regulation concerning the support schemes for renewable energy are going through significant changes. A new legislative proposal presents a technology-neutral subsidy scheme based on a competitive bidding process with premiums. The topic was discussed by market players and industry at Energy Regulation Workshop (March 21st, Vaasa City hall).

In 2010 Finland introduced feed-in tariff as economic support mechanism for wind, biogas and wood fuel based combined heat and power. The mechanism has been effective in creating wind power capacity from below 1% market share to about 5.7%. However, the scheme has been also expensive as the electricity market price has been lower than expected. The feed-in tariff for wind, biogas and wood fuel power plants comprises the target price less than the three-month mean market price of electricity. The target price is €83.50/MWh. At the beginning of the scheme the market price varied €45 to €55/MWh but at the end of the support period it has been €30 to €35MWh.

In Vaasa Energy Week preparation of the support scheme based on a competitive bidding process with premiums was discussed. Total of 2 TWh of renewable energy would be generated through the scheme. However, details of the scheme, definitions concerning technological neutrality and schedule of the scheme remained open. Several presentations, representing the industry and market players, forecasted significant increase of the wind power capacity in Finland – despite the details of the new support scheme. For instance one major market player, OX2 informed about their own objectives for Finland being 500-600 MW of wind power, which is about the same as the 2TWh objective. This major market growth would be based on:

  • large number of projects prepared during the feed-in tariff system
  • interest among investors
  • fast technological development (bigger turbines, rotors, towers)
  • competitive procurement processes, and
  • large base of experienced and internationally active project developer

In addition, PPA’s i.e. Power Purchase Agreements, were seen as growing business model with customer being larger-scale companies with RE commitments. Also the length of those agreements can be over 10 year periods. The forecasted future was that 5-10 market players would dominate the market, and scale of the wind power systems could be divided into large-scale market based systems and smaller systems more dependent on the economic supports. As Finland is much dependent on the imported energy (share 23.9%) the growth potential is evident. At the same time the grid imbalances and volatility are increasing.

The support scheme preparation was considered still as uncertain and delays investment decisions. In addition, market players considered that the system might not be equal but favoring more large-scale projects. As the technological neutrality is still undefined, it remains open how the support treats different technologies and introduction of new innovations. The policy advocacy activities are part of the GREBE project, and in Finland the focus will be on informing the project stakeholders about the current transition of the national and regional energy system and related policies.

Finnish heat enterprises investing in solar power

Solar PV at Eno
Satellite picture based 3D model of the solar PV plant in Eno (Kim Blomqvist, Karelia UAS)

The heat entrepreneurs have been actively involved in the latest developments of the solar power in North Karelia, Finland. Several investments will take place this autumn to provide renewable electricity for district heating plants.

Finnish heat entrepreneurship is mostly based on biomass. The number of heating plants has increased steadily between the early establishments in 1990’s, to 330 plants in 2006 and 618 in 2015. About 25 % of the plants were connected to the district heating network, and the median size of the heating plants is 500 kW. The heat enterprises are mostly private companies (43%), cooperatives (12.7%) and other types of firms, mostly single entrepreneurs (44.5%).

The heat entrepreneurs have become increasingly interested in solar power integrated to the heating plans. The plans have stable electricity consumption profiles, i.e. less hourly variations compared to many other end-users. The systems require very limited service and maintenance work, and profitability is better than in solar thermal. The economic analyses indicate that the new investments in DH plans located in North Karelia will have approximately 11-15 years paybacks and 5-9 internal interest rates.

The Power from the Sun project, run by Kim Blomqvist from GREBE project partner Karelia UAS, has supported the establishment of the systems in four energy enterprises in Eno, Tuupovaara, Kiihtelysvaara, Kontiolahti and Biowin Karelia Ltd. The investments have received 25% energy support from the Finnish Funding Agency for Innovation. Seven solar power plans have total capacity of 70 kW, varying between 5 to 21 kW, and estimated annual production is 52 000 kWh. The systems will be provided by a local company Mirotex Ltd. and installed in September.