community wind power in developing countries

Coimbatore, 21 June 2015

World Wind Energy Association

Uniting the World of Wind Energy www.wwindea.org

Avenues for Community Wind in Developing

Countries Trends and innovative business

models from South Africa and Mexico

Carlo Schick – WWEA

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Introduction

“Renewable Energies are not there to solve all problems of all people, but they

can contribute to reach at least a base level of satisfaction for most people!“

Wind power as a means for poverty reduction and sustainable development

• Alleviate dependence on energy imports

• Cost-competitiveness of RE

• Local production, local added value

• Leapfrog high-carbon technologies

Community power as the most democratic, local

and accountable option

RE project growth rate from 2008 to 2013

o Developing Countries: 143 %

o Industrialized Countries: 84%

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Challenges of Wind Power in Developing Countries

• Lack of coherent policies

• Administrative burdens

• High capital costs & inadequate availability

• Underdeveloped grid infrastructure

• Centralized/monopolized markets

Challenges of Community Wind in Developing Countries

• Access to risk capital for community members

• Often face problems with land ownership rights

• market dominance by foreign corporations

• Very few pilot/showcase projects

• Lack of awareness about the positive impacts

Challenges for Community Wind in Developing Countries

CW only

plays a

minor

part

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Policy background: REI4P – South Africa

• Introduction of the Renewable Energy

Independent Power Producer Procurement

Program (REI4P) in 2011

• Wind power target for 2030: 9 200 MW

• Bid assessment: 70% Price + 30% economic

development criteria

1. Job creation

2. Local ownership: minimum of 2.5% ownership of a

community entity

3. Enterprise development

4. Socio-economic development

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Source: IPPP Office SA, 2015

Source: http://energy.org.za/




South Africa – just energy

• Community trailblazer project by just energy (NPO)

• Wesley project 33 MW “preferred bidder”

o Land owned by local community landowners and

farmers on former Homeland area

o Developer’s fee utilized to buy equity for the

community ~ 25 % of ownership

o Cooperation with Innowind (EDF subsidiary)

• REI4P currently under revision

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Source: IPPP Office SA, 2015




Windy conflicts in Mexico

• 2020 targets for onshore wind: 12 GW = 1.5 GW

anually

• No FIT, no tax credit, until now very centralized

• Overall objective: diversification

• Showcase example: Mareña wind farm

o 396 MW

o Resistance drivers

• Impact on fishing expected

• No official impact assessment

• General mistrust in authorities

• Negative experiences

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Mexico - Yansa

• Yansa Community Interest Company (CIC)

• Yansa Foundation

• Local office Ixtepec (Oaxaca)

project specific CIC

• Pilot project: 100 MW community wind park

o Project owned by CIC (“social objectives”)

o 50% of the revenues into the community

trust

o Currently in PPA negotiation

o Broad acceptance by the local

communities

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Source: yansa.com

Source: yansa.com




Summary

• Also Germany can learn from international experiences!

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- Fierce competition for small players

- Operation highly dependent on grants and donations

- Social entrepreneurs AND project developers

- Not only financial contribution but participative approach

- Projects can have a strong multiplier effect




Road Map for Community Power

• WWEA Agenda:

o SAIREC 2015

o Research Project in North Rhine-Westphalia

o WWEC2015 Israel + WWEC2016 Japan

Re-Vitalizing of the Community Power Network

• International impetus:

o International RE policy process

o Climate Finance (Green Climate Fund, COP21)

o Sustainable Development Goals

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Thanks for your attention!

Time for questions and discussion

Contact: [email protected]

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Community Interest Company

• New type of company introduced in 2005

• Designed for social enterprises

Profits and assets for public good

• No maximization of profits for

shareholders and owners

• CICs must be limited companies

• CICs more lightly regulated than charities,

but also don’t have the benefits




Additional REI4P Information

community wind power in developing countries

Documents