El Hierro 100 % RES

Island

Strategies for promoting

RES in Islands

Salvador suárez

Canary Islands Institute of Technology

• Energy framework of the Canary Islands

• El Hierro wind-pumped-hydro system

• ISLE-PACT Initiative

CANARY ISLANDS

They share many characteristics with other European island regions

• Fragile ecosystems

with many species

and a big share of its

territory protected

• Economy heavily dependent on

tourism (12.000.00 tourist a year

contribute to 80 % of its GDP)

• Total energy dependence of

imported energy (96 % of energy

from oil)

• Abundant RES potential

(3,000 - 4,500 eq. hrs.,

and 3,000 Sun hors)

• High rise of the electric demand

• Independent, small and weak

electrical systems

Political commitment to sustainable

development

30.512 Tep

19.919 Tep

30.797 Tep

295.927 Tep

171,318 Tep

1.024.466 Tep

2.097.200 Tep

4.022.634 Tep

7.337.665 Tep

54.661 Tep

Losses

Trans+Distr.

Electric power generation

Sea and air

transport

1.341.974 Tep Heat

Energy Balance Canary Islands 2011

805.657 Tep Electricity

112,879 Tep

151,777 Tep Municipal.

Island Auth.

Region.Gov.

CONVERSION FACTORS

Crude oil 1,0 Tep/Tm

Gas 1,1 Tep/Tm

Querosene 1,1 Tep/Tm

Diesel oil 1,0 Tep/Tm

Fuel oil 1,0 Tep/Tm

CONVERSION FACTORS

Electric energy 0,086 Tep/MWh

Wind 0,086 Tep/MWh

Photovotaic 0,086 Tep/MWh

GRAN CANARIA

Power (MW) 1,251.7

Energy (GWh) 3,707

EL HIERRO

Power (MW) 13.1

Energy (GWh) 44.87

LA GOMERA

Power (MW) 23.2

Energy (GWh) 74.06

TENERIFE

Power (MW) 1,333

Energy (GWh) 3,715

LA PALMA

Power (MW) 116.4

Energy (GWh) 273.52

LANZAROTE

Power (MW) 229.1

Energy (GWh) 874.7

FUERTEVENTURA

Power (MW) 210.8

Energy (GWh) 677.97

TOTAL

Power (MW) 3,177.3

Energy (GWh) 9,368

Installed Electric Power and Energy Produced

Renewable Energy Potential

Solar Energy

Hours > 2,500 – 3,000 h/año

Radiation 5 - 6 kWh/m2 day

Wind Energy

Mean Wind Speed 6 to 8 m/s

Yield of wind farms: 3,000 – 4,500 eqiv. hours

Type 2006 PECAN (2015)

Wind 137 MW 1.025 MW

Hydro 1,3 MW 13,6 MW*

Solar Photovoltaic 0,6 MW 160 MW

Solar Thermal 80.000 m2 460.000 m2

Solar Thermoelectric 30 MW

Biofuels 30 MW

Waves 50 MW

PECAN (Energy Plan for Canary Islands) 2006: RES objectives 2015

MAXIMIZING PENETRATION OF RENEWABLE ENERGIES (RES)

Barriers to wind energy penetration in the Canary Islands

Electric System Land Planning Economic-Administrative

issues

Forecasting of wind and

solar resources

Energy

storage

Grid stability

studies

Estrategy for maximizing RES penetration in the Canary Islands in the power grids

Demand

Management

The small and weak island grids limit the penetration of variable and intermittent RES.

New infrastructure for massive energy storage and R&D in new energy vectors is needed to guarantee that new RES systems do not affect the stability of the islands electrical systems, and European financial support is a key issue.

Most islands have achieve their maximum level of RES penetration that their electrical systems can support without risking grid stability, which makes it difficult for private investors to installed new wind and solar systems.

EUROPEAN ISLANDS ELECTRICAL GRIDS

DERLAB: Distributed Generation Laboratory

• Assessment of new approaches for electric network control

• Load and Storage Management

• Communication protocol interfaces aimed to improve management and control strategies (ITC’s)

• Microgrid testing

• GD Interconnection elements testing

• Strategies for the integration of distributed generation sources (solar, wind …) in the insular electric networks

R+D+i lines

ENERGY RESOURCE ASSESMENT AND FORECASTING

MEASUREMENT STATIONS NETWORK

• 33 WIND STATIONS: Wind potential studies, which are needed for feasibility analysis of wind farms at particular locations

• 23 RADIOMETRIC STATIONS: Estimation of photovoltaic plant production

WEATHER FORECAST SERVICE: to estimate the energy to be injected in the grid by photovoltaic and wind generators within a 6-96 hours time horizon (MM5, WRF).

DEMAND MANAGEMENT: Energy and water

Residential & touristic 374,000 m³/day 153 plants

Agriculture 146,000 m³/day 100 plants

Use of desalinated water

20% of energy production goes to water desalination and water distribution.

Energy consumption for water desalination:

1Kg fuel/ m³ of desalinated water.

- For 522,000 m³/day

- Import 150,000 Ton fuel /year.

DEMAND MANAGEMENT: Electric cars

30% of oil consumed in the internal market goes to the road transport sector.

Peak shaving: More than 1 million vehicles could charge at valley hours of the electric demand curve

ENERGY STORAGE

20 bar

H2O

H2

0,5 kWh/m³ 4,5 kWh/m³

H2 vector energético

HYDROGEN: TRANSPORT FUEL

350 bar

16

=

1 atm

3 kWh 0 ºC

Fuel cells

1.5 kWh

1.5 kWh

Therma l energy

Heat

Electricity

350 bar

η = 50 %

89.9 g de H2

89.9 g de H 2

2.9 litros

HYDROGENE

HYDROGEN: Most relevant RES – H2 projects

With 1.025 MW of wind-power (PECAN: target 2015), and by using energy

surpluses from valley time, H2 could be produced to feed 600 urban buses.

HYDROHYBRID

RES2H2 H2 energy vector

H2 automotive fuel

HYDROBUS

Practical experiences allowing ITC to progress on the H2 technologies learning

curve

Maximizing RES Penetration in Insular Grids: other projects

Several Storage Projects ongoing, promoted by the utility (ENDESA) and the TSO (Red Eléctrica de España): NaS, ZnBr, Supercaps, Flywheels

Pumped Storage

(Peak Shaving)

4 Plants planned: Gran Canaria, Tenerife, La Palma, La Gomera

Current Situation Electricity consumption 44.87 GWh

9 Diesel installed in Llanos Blancos Power Station.

Case Study: El Hierro Island

EL HIERRO WIND HYDRO POWER STATION

WIND – HYDRO Power station (only wind operation)

EL HIERRO WIND-PUMPED-HYDRO SYSTEM

Area 278 km2

Height 1.501 m.

Population 10.890 inhab.

Electricity Plant (Diesel)

nominal power 13,3 MW

Peak demand 7 MW

Wind Farm 11,5 MW

Hydroelectric Substation 11,3 MW

Pumping Station 6 MW

Upper Reservoir 556.000 m3

Lower Reservoir 150.000 m3

New Diesel systems 0

RES penetration 80%

Energía total: 44,87 GWh

Wind Energy: 27 GWh

Hydro: 6,87 GWh

Diesel: 11 GWh

Upper reservoir

Penstock

Lower reservoir

Wind Farm

Pumps and hydro power station

Pumps and hydro power station

EL HIERRO WIND HYDRO POWER STATION

The systems avoids:

The system avoids the equivalent of 20 oil tankers of 2,000 Tn each (26 are currently necessary to meet the demand)

742 Tm

SO2

2,697 Tm

NOx 130118 Tm

CO2

47 Tm

VOC

41,257 Tm

Fuel-Oil

Wind-Hydro Power Station

BBC:

http://news.bbc.co.uk/2/hi/europe/7951286.stm

A bankable project

Wind – Pumped Hydro Power Station

POSITIVE EXTERNALITIES

• Emission reductions

• Local job creation

• Energy independence

• Improve tourist image

• etc,

This public grant guaranties a reasonable PAYBACK of 11 years, and a IRR of

7.5 % for the private investor. Other instruments, such special tariff schemes is

being studied to raise IRR for the private investors to 8 %.

They are the justifications for the financial support of Spain’s IDAE to the project, through a capital grant of 35 M€ (50 % of investment cost).

Without public support the project would not had been possible.

ISLE-PACT

INSTITUTO TECNOLÓGICO DE CANARIAS

30

ISLE-PACT Goals

• Achieve an overall objective of more than

20% CO2 emissions reduction by 2020.

• Demonstrate islands’ political commitment to

EU sustainable energy objectives by signing

a BINDING DECLARATION, the Pact of

Islands.

+ = Reductions

• Develop Island Sustainable Energy Action Plans (ISEAPs).

• Assess environmental and socio-economic impact of projects

• Produce a pipeline of priority bankable projects and the means to finance them

31

The autonomous governments (regions) of Sardinia, Sicily, Azores and Madeira

18 Greek island municipalities in the Aegean

13 Cyprus communities

5 Malta local councils

Samsø from Denmark

More islands are in the process of joining

60 Island SEAPS have been preparation

9 ISEAPs have been formally adopted by island authorities

92 projects have been submitted – 54 have been retained

ISLE-PACT

• 62 Island authorities have signed the Pact of Islands

• All 7 Island Authorities of the Canary Islands

• The regions of Western Isles, Gotland, Hiiumaa, Saaremaa, Öland and Crete

Needed EC support for overcoming existing barriers to maximum penetration of RES in European Islands

• High cost of the technologies

• High upfront payment and relative long

payback periods

• High financing costs

The EC could contribute to RES projects in European island regions though

• Favourable loans

• Capital subsidies

• Tariff support schemes

Existing barriers to RES include technical, regulatory/administrative, marketing, but European support should focuss in existing financial barries to private investment in RES projects

Identify and analyse potential Renewable Energies, Energy Efficiency and Sustainable Transport feasible projects, to foster private investment with public support (public-private partnership)

BANKABLE PROJECTS

Reductions

A preliminary list of 92 identified projects has been compiled for the 11 participating European island regions

• Identification of Projects

• Prioritisation of key projects to achieve targets

• Pre-feasibility studies & screening for bankability

A second list of 54 projects chosen for bankability analysis

Analysis of the projects to estimate their profitability in terms of financial parameters (PAYBACK, NPV and IRR)

• Positive externalities identified and valued for each proposed project

• Assessment for public supports, through possible capital grants needed to assure a minimum reasonable profitability for private investors in each project proposal

Number of

Identified

Projects

Number of

analysed

projects

Partners

Co - WESTERN ISLES 3 3 P1 –GOTLAND 3 + 3* 3 P2 - MADEIRA 5 2 P3 – CANARY ISLANDS 7 7 P5 – GREEK ISLANDS 24 11 P6- CRETE 22 7 P7 - SARDINIA 6 6 P8 - MALTA 6 6 P9 - CYPRUS 6 3 P10 - SAMSØ. 4 2 P11 - AZORES 4 2

TOTAL 92 54

ALL PARTNERS – Identification of projects

* Olands

** Saaremaa

*** Hiumaa

2,000x107 2,200x107 2,400x107 2,600x107 2,800x1070,01

0,02

0,03

0,04

0,05

0,06

0,07

0,08

0,09

0,1

Investment

IRR

Inf 1 %

Inf 2 %

Inf 3 %

Inf 4 %

Inf 5 %

Inf 6 %

23,800,000 €

5,8 %

EUROPEAN COMMISSION

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BANKABILITY INDEX

This index is an indicator that expresses the percentage

of public support that each project needs to achieve

bankability (produce a positive return on investment for

the private investor).

This Bankability indicator has been defined from

0 to 10 in order to provide a parameter that

allows creating a scale of “dependence on public

funding” among different project.

Bankability indicator=0 : project needing less

that 10 % (in terms of investment cost) of public

subsidies.

Bankability indicator=10 : project investment

completely financed with public subsidies.

NEEDED

PUBLIC

SUPPORT

BANKABILITY

INDEX

0% - 10% 0

11% - 20% 1

21% - 30% 2

31% - 40% 3

41% - 50% 4

51% - 60% 5

61% - 70% 6

71% - 80% 7

81% - 90% 8

91% - 99% 9

100% 10

EUROPEAN COMMISSION

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BANKABILITY

INDEX

No. of

PROJECTS

00* 6 13%

0 8 13%

1 11 20%

2 9 17%

3 6 11%

4 5 9%

5 3 6%

6 3 6%

8 1 2%

9 2 4%

TOTAL 54 100% 0%

5%

10%

15%

20%

25%

00 0 1 2 3 4 5 6 8 9

Pro

jec

ts

Bankability Index

BANKABILITY

RESULTS OF BANKABILITY ANALYSIS

* Bankable by themselves without any need of public support

Minimizing the needs for fossil fuels to satisfy the electricity demands from households, productive activities and public services, by maximizing the penetration of RES.

Minigrid for La Graciosa

Currently there is a submarine cable connection with power capacity of 1,030 kW, and a yearly electric consumption of 3.484.914 kWh.

Objectives

658 permanent residents

342 houses

Electrric Loads

Minimum power 204,08 kW

Maximum power 668,00 kW

EUROPEAN COMMISSION

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EUROPEAN COMMISSION

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Photovoltaic 913 kWp 1.551.250 kWh/yr

Wind 50 kW 65.000 kWh/yr

Diesel 500 kW 131.400 kWh/yr

Yearly product. 1.747.650 kWh/yr

Electric demand 1.667.550 kWh/yr

Excess 80.100 kWh/yr

Total cost 7.062.000 €

Public support 2.547.329, €

IRR (Inc.Public suport) 12,4%

Batteries

Control and power conditioning unit

Loads

The microgrid will combine photovoltaic, wind and diesel systems to supply, in a stand alone mode, the electrical needs of the island of La Graciosa.

Energy storage: batteries

Minigrid for La Graciosa

• 36 % Public support

• Bankability index: 3

EUROPEAN COMMISSION

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Bankability Analysis on the overhaul of an existing singular stand-alone RES system

Punta Jandía Wind Diesel System, Fuerteventura Island

Public benefit, in terms of positive externalities, should be

the bases for needed public subventions (grants, feed in

tariff, etc), to guarantee a minimum acceptable return on

investment for private investors.

Initiatives such as PACT of ISLANDS are welcome as a first step

to reinforce the strong Public-Private partnership needed to

promote RES and energy efficiency in European Islands.

An effective strategy will need further commitment from the

EC to financially support those identified projects in the

fields of RES and energy efficiency.

Most RES projects involve technologies that lack the competitive

maturity of most fossil fuel based technologies. To attract private

investors regional, national and European public support are

needed.

CONCLUSIONS

Thank you for your attention