Advice Notes on Energy Storage Economics for the NPA Region

Energy Storage

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/2018/04/Advice-Notes-Energy-storage-2-3.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.

Some of the renewable energy resources are classified as intermittent in nature, meaning that the corresponding technologies produce electricity/heat depending on the availability of the resource. Two of the main drawbacks are the short-term variability and low predictability inherent to renewable sources. Thus, when the wind is not blowing and the sun is not shining, the clean technologies cannot match the demand. However, when the resources are available, it is often the case that they produce more energy than required. By storing the energy produced and supplying it on demand, these technologies can continue to power the businesses even when the sun has set and the air is still, creating a continuous, reliable stream of power throughout the day. Furthermore, energy storage systems can shift consumption of electricity from expensive periods of high demand to periods of lower cost electricity during low demand.

battery storage

This can be over different timescales, from intra-day (when energy is shifted from low value to high value periods within the same 24-hour period) to inter-seasonal, where energy is stored in summer when demand is lower and used in winter when demand is greater. Contingent on elements such as a facility’s location, utility rates, and electrical load, energy storage can be an apt solution for facilities to cut energy bills. The use of energy storage can also allow greater returns on investment to be made from deployed renewable energy technologies. Storage technologies could decrease the need to invest in new conventional generation capacity, resulting in financial savings and reduced emissions especially from electricity generation. Utilisation of storage also means fewer and cheaper electricity transmission and distribution system upgrades are required.

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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).

New scheme encouraging homeowners to install solar panels launched today

solarPanelsRoofInstall_large

A new scheme encouraging homeowners to install solar panels has been launched this morning. The pilot scheme offers grants for the installation of solar panels and extra funds to install battery storage systems.  Environment Minister Denis Naughten says the scheme will allow people to turn their home into their very own “renewable power station.” He said homeowners can save around €220 in electricity costs every year by taking advantage of the scheme.

Announcing the grants for homeowners, Minister for Communications, Climate Action and Environment, Denis Naughten TD said: “Turning your home into a renewable power station is now one step closer. Microgeneration is an incredibly exciting space that will allow citizens in local communities to generate their own electricity and contribute towards Ireland’s climate action targets. With this grant that I am announcing today, a typical 3-bed semi-detached house would spend about €1,800 on a solar panel system and would save approximately €220 per year on their electricity bills.”

The Minister added: “The pilot scheme will be subject to a 6-month review at which time the costs of installation will be assessed and further opportunities to broaden this scheme to other groups and other technologies will be explored.” The scheme will be funded by the Department of Communications, Climate Action and Environment and administered by the Sustainable Energy Authority of Ireland (SEAI). The grant is available for homes built and occupied before 2011 and details of eligibility criteria and how to apply are set out here. A registered solar PV installer must be used and a full list of registered installers is also available on the SEAI website.

https://www.irishexaminer.com/

Government approves scheme to diversify green energy

DNaughten

A new scheme designed to diversify the State’s renewable energy production and boost its chances of meeting key EU targets has been approved by the Government. The Renewable Electricity Support Scheme (RESS) is designed to help the State meet its renewable pledges up to 2030. Its first priority is to boost renewable energy production quickly to help turn 16 per cent of the State’s energy needs “green” by 2020. The scheme will incentivise the introduction of sufficient renewable electricity generation by promoting investment by community groups in green projects. Offshore wind and tidal projects will be central if the State is to meet its targets, while it is expected to also support an immediate scale-up of solar projects. Projects looking for support under the scheme will need to meet pre-qualification criteria, including offering the community an opportunity to invest in and take ownership of a portion of renewable projects in their local area.

Auction system

The RESS scheme introduces a new auction system where types of energy will bid for State support. It is proposed that the scheme be funded through the Public Service Obligation Levy, which is a charge on consumers to support the generation of electricity from renewable sources. Individual projects will not be capped, but the Government will limit the amount that a single technology, such as wind or tidal, can win in a single auction. The auctions will be held at frequent intervals throughout the lifetime of the scheme to allow the State to take advantage of falling technology costs. The first auction in 2019 will prioritise “shovel-ready projects”. “By not auctioning all the required capacity at once, we will not be locking in higher costs for consumers for the entirety of the scheme,” Minister for the Environment Denis Naughten said. In effect it should make it easier for solar and offshore wind to get investment, yielding multiple billions for green projects over the next 15 years.

2020 vision

It is hoped renewable energy will represent 40 per cent of the State’s gross electricity consumption by 2020, and 55 per cent by 2030, subject to determining the cost-effective level that will be set out in the draft National Energy and Climate Plan, which must be approved by the EU and in place by the end of 2019. In addition the scheme is intended to deliver broader energy policy objectives, including enhancing security of supply. “This scheme will mark a shift from guaranteed fixed prices for renewable generators to a more market-oriented mechanism [auctions] where the cost of support will be determined by competitive bidding between renewable generators,” said Mr Naughten. The next step for the Government is to secure EU approval for the package, which typically takes six to nine months. It is estimated that the first auction will be in the second half of next year.

https://www.irishtimes.com/news/environment/government-approves-scheme-to-diversify-green-energy-1.3575492

Karelia University of Applied Sciences implements pilot mentoring programme in North Karelia

Kuas Blog

Karelia University of Applied Sciences implemented a pilot mentoring programme for three renewable energy related companies in North Karelia. Mentoring took place between January 2018 and April 2018 for three renewable energy related companies in North Karelia. The mentoring provided the companies with suggestions for production process development, new business and product ideas and ways to develop their company as a whole.

As mentoring is a rather new method in Finnish business world, the GREBE project team was interested to see how things would proceed in its pilot mentoring sessions. The Irish partner’s processes were taken as an example for Karelia’s mentoring. The mentor proposed 2-5 optional solutions for the mentee’s, including for example improving the production process using LEAN principles, new (bio-based) raw material options, proceeding with product innovation, new business lines and new cooperation partnerships. The mentee’s chose 1-2 proposals to take further and discussed them with the mentor and/or other partners.

The mentoring process was well received and the mentees and mentor formed a good and open relationship. Although some of the proposed solutions seemed radical, many of them were already thought of in the company but not taken further, and the mentor assisted and sparred in the process. With a given tight time schedule and mentoring schedule, the companies found the mentoring useful and efficient. Due to limitation of time as the mentoring was performed in four months the outcomes of the mentoring are not realized yet. The mentoring finished in April 2018 and the companies are proceeding with the chosen solutions.

Here are some experiences from the mentor:

“I’m Juha Määttä, Spiralia Consulting Company and I have done three business mentoring cases in the Finnish part of the project. All business cases are part of GREBE project mentoring. Mentoring tasks included solving R&D process bottlenecks, screening of new business opportunities and analysing production process. Possibilities of new biomaterial have also been estimated. All companies have had interesting and challenging business cases. Mentoring has brought new solutions for the companies. All parties have increased their knowledge of renewable energy and enlarged our networks in business and research.”

A more detailed description of the mentoring process will be available in August 2018.

Increased generation from Scottish renewables

Windfarm near Ardrossan, Scotland

In June the UK Government released figures showing that renewable energy generation has seen a dramatic 11% increase in the first half of 2018 compared to the same period in 2017. Improved weather conditions for generation have seen wind generation in Scotland increase by 37%.

Paul Wheelhouse, Scottish energy minister, said: “These figures show that Scotland’s renewable energy sector is stronger than ever with almost exactly 1GW of new capacity installed since Q1 2017 and a strong pipeline of further projects still to be constructed.” Last year proved to be another record breaking year with provisional annual statistics showing that renewable electricity generation was up 27% on 2016 and 19% on 2015. The increase in generation now brings 69% of Scotland’s electricity consumption being delivered by renewable energy.

Scotland has long delivered on world leading electricity targets and is helped by an abundant onshore wind resource and historic hydro system. As the Scottish Government builds out new offshore wind and tidal projects the increase in generation only looks to continue. Recent plans for a new pumped storage hydro scheme on Scotland’s famous Loch Ness show a long term vision for the country’s electricity grid as it looks to increase penetration of renewables into its grid system. Climate change targets have been helped by the closure of Scotland’s last remaining coal powered fire station in recent years but ageing nuclear power stations and a “no new nuclear” policy look to add new challenges in the future.

Dingwall Wind Co-op operates a 250kW turbine on the property of Knockbain Farm near Dingwall

The Dingwall Wind Co-op was developed by David and Richard Lockett (the owners of the land) in partnership with Sharenergy, a co-operative helping to set up RE cooperatives. The turbine operates on the property of the Knockbain Farm near Dingwall. The Locketts’ acquired planning permission and grid connection, after they approached Sharenergy, which assured they can help them with the share offer to the rest of the community. The co-op structure, mitigated some of the risks associated with developing a wind project. Furthermore, Richard specified that he was fond of the idea of shared ownership.

The Wind Co-op owns and runs a 250kW wind turbine (WTN 250) just above Dingwall in Ross-shire. The turbine is the first 100% co-operatively owned wind development in Scotland. The Co-op was launched in September 2013 and the turbine was commissioned in June 2014. The Co-op has 179 members, 90% of whom are from the local area. The shares are between £250 and £20 000, with an average about £4000.

The co-op contributes to a community fund estimated at between £2000 and £8000/year. Members of the Co-op receive a return on their investment and EIS (Enterprise Investment Scheme for Investors) tax relief. The landowners, who originated the project, receive a rental payment for use of their land.

http://grebeproject.eu/wp-content/uploads/2017/09/Wind-Energy-Dingwall-Wind-Co-op-Scotland.pdf