uk community wind - world wind energy...

UK Community Wind 2016

Jelte Harnmeijer

Renewables Fellow, James Hutton Institute Founding Partner, Scene Consulting

Carbon Finance, University of Edinburgh

Overview • UK Community Renewables o  Cross-section o  Select case studies

• Present Risk Landscape • Conclusion

Wales

England

NorthernIreland

Scotland6.5 GW3.01.5

Current deployment

Total estimated capacity:

1.5 GW

(79 %)

1 GW

(77 %)

(67 %)4 GW

(62 %)

2 GW

(69 %)

Untapped potential8.5 GW

UKOnshoreRenewables

Harnmeijer(2012)

1.5

Current deployment


(62 %)

Untapped potential

(% of total capacity)

Commercial & Industrial

Community

4 GW

6.5 GW3.0

Scotland Onshore

< 4%

> 96%

4 GW

(62 %)

}

Sco;shOnshoreRenewables

Harnmeijer(2012)

1.5

Current deployment


Untapped potential

Commercial & Industrial

Community

6.5 GW3.0

Scotland Onshore

German Onshore

Danish Off- & On-shore

}

EuropeanRenewablescompared

Harnmeijer(2012)

Middelgrunden Wind Farm, Denmark

Local Ownership: 100%

Whitelee Wind Farm, Scotland

Local Ownership: 0%

A. Project Ownership Whole Partial

B. Investment Source for Community Stake

Community Body Includes Local Development Organisations such as Development Trusts

Community-led projects

Revenue-sharing arrangements with local development organisations Joint Ventures

Individuals Includes Co-operatives of all kinds

Wholly cooperatively-owned projects Wholly crowd-funded projects

Revenue-sharing arrangements with co-operatives

�CommunityRenewables�TowardsanoperaAonaldefiniAon

Slee&Harnmeijer(inpress)

Cross-section through UK Community Renewables

hDp://energyarchipelago.com

“Was there opposition in your community?”

Harnmeijer (2013)

•  Communityprojectownershiphelpsovercomepublic

opposiAonfacingrenewableenergydevelopmentsuchas

wind-farms,thusadvancingitsuptake(Rogersetal.,2008);

Benefits

90%

0%

25%

50%

75%

100%

Jointly-Owned by Community

Wholly-Owned by Community

Plan

ning

App

rova

l Rat

e

All sectors

All technologies Onshore wind

73%

97%

86%

66%

86%

Scene (unpublished, 2014)

Harnmeijer et al. (2012)

0 10 20 30 40 50 60 70

Furth

er e

nerg

y pr

ojec

ts

Run

ning

cos

ts fo

r co

mm

unity

act

iviti

es

Edu

catio

n an

d aw

aren

ess

cam

paig

ns

Sav

ing

for f

utur

e pr

ojec

ts

Inve

stm

ent i

n co

mm

unity

pro

ject

s el

sew

here

Pub

lic b

uild

ings

Pub

lic re

crea

tion

area

s

Tran

spor

t

Oth

er in

vest

men

t

Not

sur

e ye

t

% o

f res

pond

ents

How do you spend or plan to spend your community renewables revenue?

UK Community Renewables are growing at ~30% per year

0

10

20

30

40

50

60

Tota

l Ope

ratio

nal C

apac

ity (

MW

)

TotalCommunity Sector

Wholly-Ownedby Community

Jointly-Ownedby Community

30%

ann

ual g

row

th

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Harnmeijeretal.(2013)

ln (T

otal

Ope

ratio

nal C

apac

ity (

MW

))

Community Sector

All Sectors

0.0

2.0

4.0

6.0

8.0

10.0

12.0

Dec

199

8

Dec

199

9

Dec

200

0

Dec

200

1

Dec

200

2

Dec

200

3

Dec

200

4

Dec

200

5

Dec

200

6

Dec

200

7

Dec

200

8

Dec

200

9

Dec

201

0

Dec

201

1

Dec

201

2

Dec

201

3

30% annual growth

11% annual growth

UK Community Renewables are growing at ~30% per year

Harnmeijeretal.(2013)

“Why does your community engage with renewable energy?”

Scene (2012)

•  CommuniAespresentapotenAalsourceofinvestmentinthe

renewableenergysector(Hainetal.,2005;KelleD,2007).

Benefits

Project name Technology Scale (kW) Date share raise commenced ProjectedIRR

Braemar Hydro 100 May-15 5.0

Bristol (2) Solar 180 Dec-13 4.0

Bury Hydro 75 Feb-15 4.7

Corwen Hydro 42 Feb-15 4.8

Dingwall Wind 250 Sep-13 6.5

Garmony Hydro 400 Nov-13 4.0

Harlaw Hydro 65 Apr-13 5.0

Heartland Wind 500 2015 7.0

High Winds Wind 4600 2014 6.0

Islay Energy Wind 330 Jan-14 4.0

Liverpool Solar 50 Mar-15 4.7

Ludlow Hydro 30 Feb-15 5.5

New Leaf Solar 250 Mar-15 5.0

NICE Solar 50 Mar-15 4.0

Pomona Solar 1000 Mar-15 6.1

Sunart Hydro 100 Oct-14 4.0

Urras Wind 1800 Oct-14 6.0

Wester Derry Wind 250 Apr-14 7.0

Whalley Hydro 100 Nov-13 3.0

Selection of recent community energy share

raises

Communityinvolvement

Developerpartners

Renewablesacceptance & enthusiasm

Energy efficiency anddemand-reduction gains

Revenuegeneration

Lowerdevelopment

risk

Revenuegeneration

Renewableseconomy

Benefits summary: ‘synergy’

Fintry Community

Gigha Community

South Uist Community

Tiree Community

Neilston Community

Overview • UK Community Renewables o  Cross-section o  Select case studies

• Present Risk Landscape • Conclusion

DevelopmentPhase { Inception Feasibility Pre-Planning Planning Grid Finance Build Operate Decommission

A stylised renewables development pathway

Industry-widebottlenecks

‘Saturation’(wind)

Coordinatedopposition (wind)

Transmission-& substationconstraints

Policy uncertainty(e.g. May 2015 UKelections; post-2020 subsidies & targets){


Current bottlenecks faced across the Renewables Industry







Holyrood

Westminster

Bruxelles

Policyambit{








✓

✓

✓

✓Holyrood

Westminster

Bruxelles

Policyambit{


Mapped on to relevant ‘policy ambit’

Policy shock

Technology Anaerobic Digestion

Hydro (run-of-river) Solar PV Wind

(onshore) RO

termination date

Closure brought forward

Closure brought forward

CfD auction no. 2

Postponed, possibly cancelled




FiT pre-accreditation Removed Removed Removed Removed

FiT rates Consultation expected late

2015

Curtailed, and may be

removed, as of January

2016

Curtailed, and may be removed, as of January

2016

Curtailed, and may be removed, as of January

2016

Recent policy shocks

Renewable electricity policy shocks following 18 June 2015

Recent policy shocks

UK Feed-in Tariff cuts

Band Before Consultation Decision Reduction(kW) (p/kWh) (p/kWh) (p/kWh) (%)0–50 13.73 8.61 8.54 3850–100 13.73 4.52 8.54 38100–500 5.89 4.52 5.46 7500–1500 5.89 4.52 5.46 71500–5000 2.49 0 0.86 65

Technology

Wind(onshore)


A stylised renewables development pathway

Community-specific

bottlenecks{

Socioeconomicbenefits not amaterial consideration

Limited awareness(still) of theopportunities

State aidrules

FCA restrictionson tax-relieffor communityshare issues

Lack of:- In-house expertise- Land control


Current bottlenecks facing the Community Sector specifically

Community-specific

bottlenecks{



State aidrules




✓

✓

✓

✓ ✓Holyrood

Westminster

Bruxelles

Policyambit{

Current bottlenecks facing the Community Sector specifically







Community-specific

bottlenecks{



State aidrules




All bottlenecks facing the Community Sector

✓

✓

✓

✓ ✓

✓

✓

✓

✓Holyrood

Westminster

Bruxelles

Policyambit{






Community-specific

bottlenecks{



State aidrules




All bottlenecks facing the Community Sector


Ich

Overview •  ‘Community Renewables’ o  What is it? o  Who cares?

• Present Risk Landscape

• Conclusion

Conclusion

Until recently, UK community wind energy was growing rapidly (±30% / yr). Partnership arrangements, in particular, were adding capacity rapidly. Recently policy announcements have effectively stalled developments, with most projects stalled or abandoned.

Further Inspiration

•  Harnmeijer, J. et al. (2012). Towards a global database of community-led renewable energy. Regions, 287(3), 16–18.

•  Harnmeijer, J. et al. (2013). The Community Renewables Economy. ResPublica / RenewableUK.

•  Haggett, C., Creamer, E., Harnmeijer, J., Parsons, M., & Bomberg, E. (2013). Community Energy in Scotland: the Social Factors for Success. ClimateXChange / Scottish Government.

•  Other community renewables papers available at:

http://www.sceneconsulting.com/library

uk community wind - world wind energy...

Documents