Transcript Feed-In Tariffs and renewable heat initiative policy.
Encouraging Renewable energy generation through public policy in the UK
The Renewable Obligation, Feed-in tariffs and the Renewable Heat Initiative
Presenter: Neil Packer CEng, MCIBSE CIBSE Low Carbon Consultant Senior lecturer , Staffordshire University 22-24 Feb 2011
Historical perspective
Main European Renewable energy policy and legislative drivers
Kyoto Protocol (1998)
The Kyoto Protocol (1998) required developed countries to collectively reduce 1990 carbon emissions by 5.2% over 2008-2012 by mechanisms such emissions trading and clean energy development.
The Protocol regards the EU as a single entity and requires it to cut its 1990 carbon emissions by 8% over the same period.
Each individual member state has agreed its own target with some committing to a percentage reduction in excess of 8% while others were allowed to increase their emissions.
European Climate Change Programme (2007)
The European Climate Change Programme (ECCP) outlines a climate change strategy to help prevent temperatures from increasing to more than 2 ° C above pre-industrial levels. The strategy, agreed by the Council of Ministers in spring 2007, sets three targets to be reached by 2020: A reduction in greenhouse gas emissions by 20% from 1990 levels (or by 30% in the event of an adequate international agreement) An improvement in energy efficiency of 20% An increase in energy from renewable sources to 20% of total
EU Renewable Energy Directive (2008)
The EU Renewable Energy Directive sets targets for the amount of energy each Member State should obtain from renewable sources. The EU’s overall target (set in January 2008) is for 20% of its energy to come from renewable sources by 2020. The UK has signed up to the EU renewable Energy Directive which includes a UK target of 15 percent of renewable energy from by 2020. This target is equivalent to a seven-fold increase in UK renewable energy consumption from 2008 levels: the most challenging of any EU Member State.
Main UK Renewable energy policy and legislative drivers
Climate Change Act 2008
The UK Climate Change Act sets a target for the UK to reduce carbon emissions to 80% below 1990 levels by 2050. It also set an interim target of a 34% reduction by 2020 (with the potential to increase this to a 42% cut given an international agreement) and established the concept of carbon budgets.
Among the provisions of the Act are: A carbon budgeting system which caps emissions over five-year periods, with three budgets set at a time, to help UK stay on track for the 2050 target. Carbon budgets up to 2022 were set in May 2009. The Government must report to Parliament its policies and proposals to meet the budgets. . This requirement is fulfilled by the UK Low Carbon Transition Plan .
Further measures to reduce emissions, including powers to introduce UK emissions trading schemes more quickly and easily through secondary legislation – the first use will be the Carbon Reduction
Commitment - Energy Efficiency Scheme (CRC-EES).
A requirement for the Government to issue guidance by 1 October 2009 on the way companies should report their greenhouse gas emissions, and to review the contribution reporting could make to emissions reductions by 1 December 2010. A requirement also for the Government to use powers under the Companies Act 2008 to make reporting mandatory.
New powers to support the creation of a Community Energy Savings Programme (CESP) by extending the existing Carbon Emissions . reduction Target (CERT) scheme to electricity generators .
UK Renewable Energy Strategy
The UK Renewable Energy strategy (RES) was published in 2009. The strategy aims to reduce UK carbon emissions by 750 million tonnes between now and 2050 whilst reducing fossil fuel demand by 10% and gas imports by 20-30% compared to 2020 levels. It intends to create up to half a million jobs in the UK renewable energy sector resulting from a £100 billion investment. The scenario suggests that: UK renewable electricity generation could increase from 5.5% today to 30% chiefly from on and offshore wind supplemented by hydro, wave and tidal power.
Renewable heat generation to be supplied by biogas, biomass, solar and ground sources will increase to 12% of UK total.
10% of transport requirements will be supplied from renewable sources up from approximately 2.6% today .
50000 45000 40000 35000 30000 25000 20000 15000 10000 5000 0 2010
UK Renewable Energy Commitment
2015
Year
PV Hydro Offshore wind Onshore wind Biomass/Biogas Tidal/wave 2020 Source: www.eea.europa.eu
UK Renewable Energy Committment (PV)
2500 2000 1500 1000 500 0 2010 2015
Year
2020 Source: www.eea.europa.eu
Energy Act 2010
The Energy Act 2010 implements some of the key measures required to deliver the UK government’s agenda. The Act includes provisions on: Carbon capture and storage (CCS) to support the construction of four commercial-scale CCS demonstration projects in the UK. The preparation of regular Government reports on the progress that has been made on the decarbonisation of electricity generation in Britain.
Introducing mandatory social price support to help tackle fuel poverty by lowering the energy bills of more of the most vulnerable consumers. These measures will be funded by requiring energy companies to make available at least £300 million per annum by 2013-14 on social support. The fairness of energy markets and the role of Ofgem (Office of Gas and Electricity markets) in extending its remit to include the reduction of carbon emissions and the delivery of secure energy supplies in their assessment of the interests of consumers .
Encouraging renewable electricity
1978: Jimmy Carter US President describes the energy crisis as “a clear and present danger to our nation” and introduces the National Energy Act and the Public Utilities Regulatory Policy Act which requires utilities to buy electricity from independent power producers.
1990: Germany introduces its “Stromeinsspeissungsgesetz” or “Law on Feeding Electricity into the Grid”. Utilities required to purchase electricity generated from renewable energy sources. It results in 4400MW of new wind energy capacity by 1999.
2000: Germany introduces its “Erneuerbare Energien Gesetz” or Act on Granting Priority to Renewable Energy Sources. A feed-in tariff that leads to massive take-up of PV systems.
2002 Renewable obligation commences in UK
Renewable Obligation (April 2002)
Principal pre-FIT UK mechanism for supporting Renewable Energy Obligation on all licensed electricity suppliers to source a specific amount of their sales to customers from eligible renewable sources (or buy-out to fulfil their obligation) Administered by Ofgem Players: Ofgem, licensed electricity suppliers, renewable energy generators and perhaps traders and brokers
Renewable obligation relationships Ofgem
3 4 5 1
RE generators
2
Licensed electricity suppliers
2
Traders and Brokers
2
Role of Renewable Energy Generators
To receive ROC’s(Renewable energy certificates) from Ofgem for each MWh (Megawatt-hour or 1000kWh’s) of electricity they generate.
1
To sell ROC’s to licensed electricity suppliers (or traders and brokers)*
2
To confirm electricity output figures(MWh) to Ofgem
.
3
[*However......ensuring they provide an attractive return can be a full time occupation and likely to be unattractive to smaller generators .]
Role of Licensed electricity suppliers
To buy ROC’s from renewable electricity generators (or traders and brokers).
2
To supply ROC’s to Ofgem or pay buy-out charge .
4
Role of Ofgem
To supply ROC’s to renewable energy generators for each MWh of electricity they produce.
1
To set renewable obligation targets for licensed electricity suppliers
5
To receive ROC’s or buy-out charge from licensed electricity suppliers. The buy-out is recycled to those suppliers who met their RO with ROC’s .
4
To confirm electricity output figures(MWh) from renewable electricity generators
3
Renewable Energy Certificates (ROC’s)
Historically 1 ROC per MWh
Banding introduced to allow different technologies to
receive a ROC for different numbers of MWh generated. Intended to support or encourage commercial deployment of
emerging technologies
.
ROC banding examples
Generation technology
Landfill gas Sewage gas, co-firing biomass Onshore wind, hydro, energy from waste with CHP etc Offshore wind, Biomass etc Wave, tidal stream, AD, Biomass with CHP, solar photovoltaic, geothermal, tidal impoundment etc 1.5
2.0
ROC’s per MWh
0.25
0.5
1.0
The UK renewable electricity Feed-in Tariff
FIT Background
Existing arrangement for low carbon electricity generation (Renewables Obligation) is complex and not suitable for non-energy professionals.
Energy Act 2008 identified modifications to electricity supply and distribution licences as a means of facilitating
Feed-in tariffs (FITs
). UK Low Carbon Transition Plan and Renewable Energy strategy (July 2009) set out intent to incentivise low carbon small scale electricity generation.
Also in July 2009 Consultation on Renewable Electricity Financial Incentives published. Replies from RDA’s, existing and potential low carbon generators, licensed electricity suppliers, technology manufacturers, installers, etc (closed Jan 2010).
FITs available from 1 April 2010.
FIT Scheme design
Overview
To encourage small scale low carbon electricity generation (up to 5MW) by non-energy professionals FITs support new anaerobic digestion, hydro, wind and solar PV schemes up to a maximum capacity of 5MW with tariff rates varying with technology and scale.
FITs will also support first 30,000 micro combined heat and power (mCHP) installations with a electrical capacity of 2kW or less, as a pilot programme.
FITs will not initially support solid or liquid biomass technologies for reasons of compliance, accreditation and fuel sustainability (though will continue to be supported by RO).
Payment comprises two element tariff – generation and export Generation tariff (£/kWh) dependant on technology and scale (kW peak ). A dedicated generation meter is required.
Export tariff (£/kWh) independent of technology and scale.
Amount (kWh) exported may be metered (larger generators) or assumed (’deemed’) to be a proportion of generation for installations of <30kW.
No upfront loans and grants for cost of generating equipment and installation.
Payment to generators made by large scale licensed electricity suppliers (e.g. Big 6 Centrica, EdF, EON, RWE, Npower, Scottish Power, Scottish and Southern) Expected to support 750,000 small scale low carbon electricity generators by 2020 saving 7 million tonnes of CO 2 over 10 years.
FIT Generators and suppliers
Scheme defines renewable energy installations of 50kW and below as ‘microgenerators’ Renewable energy Installations of 50kW up to and including a capacity of 5MW are termed ‘small generators’ Large (> 50,000 domestic customers) existing licensed electricity suppliers (mandatory FITs suppliers) will be obliged to offer FITs to generators who qualify. Smaller suppliers (voluntary FIT suppliers) may participate if they wish and will in any event have right to decline to offer FITs to prospective generators over 50kW.
Small scale and micro generators enter into contracts with and are paid by licensed electricity suppliers offering FIT’s.
New generators who are currently off-grid are still eligible and may approach any mandatory FIT supplier The costs of the scheme will be borne by all licensed electricity suppliers in proportion to their share of the UK electricity market.
A ‘levelisation’ process will be carried out by Ofgem on an annual basis using FIT returns made by the suppliers. Suppliers who have paid out less than their calculated share will need to pay into a central fund for redistribution.
Ultimately the suppliers costs will be reflected in their retail electricity price to all customers.
Scheme will be monitored and enforced by the Office of gas and electricity markets (Ofgem) who will provide central accreditation and registration.
Structure of FIT tariffs
The generation tariff (p/kWh) differs by technology and scale will be paid for every kWh generated and metered by the generator regardless of whether the electricity is used on site or exported to the local electricity network.
The export tariff (p/kWh) will be either metered and paid as a guaranteed amount that generators are eligible for, or will, in the case of microgenerators be assumed to be a proportion (typically 50%) of the generation in any period in which case a meter will not be required.
Tariff lifetimes vary from 10 – 25 years dependant on technology e.g. Solar PV schemes have a lifetime of 25 years, wind and hydro schemes 20 years.
Payments will be made quarterly
All generation and export tariffs are linked to the retail price index (RPI).
FITs income for domestic properties generating electricity mainly for their own use will not be regarded as taxable income. Non-domestic generators check with HMRC.
Tariffs rates have set by considering technology costs and generation expectations at different scales to deliver an approximate rate of return of 5-8% at well sited installations.
Technologies are banded according to scale (kW) and whether the generator comprises an individual, a collective or an affiliation. Some examples: 500kW for anaerobic digestion……..’farm scale’ 100kW – 2MW for hydro……..’community scale’ 500kW – 1.5MW for wind……..’community scale
Once an installation has been allocated a tariff, that tariff remains fixed (relative to inflation) for the life of the installation or the life of the tariff whichever is shorter.
Tariffs that are available for new installations will however ‘
degress’
or reduce each year to reflect predicted technology cost reductions and maintain the rate of return.
Typical generation rate ‘
degression
’ over first 10 years of scheme: Anaerobic digestion, Hydro, Mico-CHP, Wind (>100kW) - 0% PV ~ 43% of 2010, Wind (<100kW) ~ 60-66% of 2010
Level of FIT tariffs
Technology: Solar PV
Scale or capacity
Tariff lifetime: 25 years Generation tariff level for new installations (p/kWh) Year 1 1/4/10-31/3/11 36.1
Year 2 1/4/11-31/3/12 36.1
Year 3 1/4/12-31/3/13 33.0
4kW new build 4kW retrofit > 4 – 10kW > 10 – 100kW > 100kW – 5MW 41.3
36.1
31.4
29.3
41.3
36.1
31.4
29.3
Stand alone system 29.3
29.3
Export tariff (additional to generation tariff): 3p/kWh 37.8
33.0
28.7
26.8
26.8
PV tariffs require a little clarification; 4kW ……
’new build
’ - where installed on a new building before occupation 4kW ……’
retrofit
’ - where installed on a building which is already occupied ……
’stand alone system
’ - not attached to a building and not wired to provide electricity to an occupied building.
Technology:
Wind
Scale or capacity 1.5kW
> 1.5 -15kW > 15 – 100kW > 100 – 500kW > 500kW – 1.5MW
> 1.5MW – 5MW Tariff lifetime:
20 years
Generation tariff level for new installations (p/kWh) Year 1 1/4/10-31/3/11 34.5
Year 2 1/4/11-31/3/12 34.5
Year 3 1/4/12-31/3/13 32.6
26.7
24.1
18.8
9.4
4.5
26.7
24.1
18.8
9.4
4.5
25.5
23.0
18.8
9.4
4.5
Export tariff (additional to generation tariff): 3p/kWh
Technology:
Hydro
Scale or capacity 15kW > 15-100kW > 100kW – 2MW > 2 – 5MW Tariff lifetime:
20 years
Generation tariff level for new installations (p/kWh) Year 1 1/4/10-31/3/11 19.9
Year 2 1/4/11-31/3/12 19.9
Year 3 1/4/12-31/3/13 19.9
17.8
11.0
4.5
17.8
11.0
4.5
17.8
11.0
4.5
Export tariff (additional to generation tariff): 3p/kWh
Technology:
Anaerobic digestion
Scale or capacity 500kW > 500kW Tariff lifetime:
20 years
Generation tariff level for new installations (p/kWh) Year 1 1/4/10-31/3/11 11.5
Year 2 1/4/11-31/3/12 11.5
Year 3 1/4/12-31/3/13 11.5
9.0
9.0
9.0
Export tariff (additional to generation tariff): 3p/kWh
Technology:
MicroCHP pilot
Scale or capacity 2kW Tariff lifetime:
10 years
Generation tariff level for new installations (p/kWh) Year 1 1/4/10-31/3/11 10.0
Year 2 1/4/11-31/3/12 10.0
Year 3 1/4/12-31/3/13 10.0
Technology: Various Tariff lifetime:
to 2027
Scale or capacity Existing microgenerators transferred from RO Generation tariff level for installations (p/kWh) Year 1 1/4/10-31/3/11 9.0
Year 2 1/4/11-31/3/12 9.0
Year 3 1/4/12-31/3/13 9.0
Export tariff (additional to generation tariff): 3p/kWh
FIT Eligibility and timing
If your generator was installed after 1 April 2010: it must be a technology recognised by the scheme i.e. Anaerobic digestion, domestic scale mCHP, Hydro, Solar PV or Wind.
it must have an installed capacity of less than 5MW. (2kW or less for mCHP) it must be appropriately accredited by the Microgeneration certification scheme (MCS) if under 50kW or Renewables obligation order (ROO-FIT) for 50kW – 5MW must have an approved generation meter and if installation is over 30kW an approved export meter it must not be registered with more than one FIT supplier and cannot be simultaneously registered for ROC payments
Microgeneration Certification Scheme (MCS)
an independent industry-led certification body accredited by the United Kingdom accreditation service (UKAS) assesses installation companies and products against robust standards provides assurances about quality, durability and energy generation provides a level of consumer protection meeting OFT requirements
ROO-FIT
A scheme run by Ofgem (Office of gas and electricity markets)
Siting
A site is defined in relation to address, map reference and electricity meter identification.
Two different technologies on a single site will be classified as two different installations and attract separate tariffs.
Multiple installations of the same technology on a single site will be classified as a single installation for the purposes of tariff allocation. So for example a 3MW wind farm site cannot be registered as two 1.5MW installations to benefit from the higher tariff rates .
Installation
Microgenerators (50kW or less) will have to use Microgeneration Certification Scheme (MCS) products and accredited installers who will also lodge the FIT registration centrally with Ofgem. Installations of 50kW to 5MW must register directly with Ofgem.
Any expansion of an installation within 12 months will be regarded as an increase in capacity of the installation. If the expansion takes place >12 months after registration, the original will retain its classification whilst the new will be rated at the capacity of the aggregate of the two stations.
Refurbished/renovated/second hand/re-commissioned installations will not be eligible for FITs because of the different cost base involved.
The reading and reporting to the FITs supplier of generation and export meters (where present) is the responsibility of the generator.
Multi-installation site 1.5MW
1.5MW
1.5MW
Tariff rate 9.4p/kWh 1.5MW = 3MW + 4.5p/kWh + 1.5MW = 3MW 9.4p/kWh for initial turbine 4.5p/kWh for additional turbine After 12 months
FIT Auditing, assurance and enforcement
Shared between Ofgem and licensed electricity suppliers: to ensure only eligible installations claim FITs to ensure claims are at an appropriate level of tariff to ensure generator information is accurate to provide checks to prevent abuse or fraud to ensure a fair ‘levelisation’ process takes place Ofgem responsible for establishing and managing central FIT register Suppliers to undertake checks that payments made are accurate and appropriate
Reviews and interactions with other policies
Under EU law FITs must comply with rules on provision of state aid with a view to ensuring that government interventions to not distort competition and intra-community trade(e.g. FITs and grant programmes). To be monitored on a case-by-case basis.
Micro-generation products are eligible for both CERT and CESP.
Eligibility for exemption from the Climate change levy (CCL)) or for the issue of Renewable energy and CHP guarantees of origin will not be affected by FITs
FITs interaction with Renewables Obligation (RO)
Microgenerators (capacity of 50kW and below) having applied for RO accreditation prior to 31/3/10 will have this accreditation transferred to FITs scheme and will not be required to meet MCS accreditation requirements. Must find FIT supplier by 1/10/10 to avoid interruption of support.
Microgenerators having applied for RO accreditation prior to 15/7/09 will transfer to a FIT generation tariff of 9p/kWh and will receive support until 2027. This is calculated to be equivalent in level and duration to the support they would have received if remaining in RO scheme.
Microgenerators having applied for RO accreditation after 15/7/09 but before 1/4/10 will transfer to FITs at appropriate tariff.
Small generators
(capacity above 50kW and up to and including 5MW) having applied for RO accreditation
prior to 15/7/09
will remain in RO and will not be eligible for transfer to FITs scheme. Small generators having applied for RO accreditation
after 15/7/09 but before 1/4/10
will have a window of opportunity to apply to transfer to FITs if they wish. Ofgem must be informed in writing by 31/8/10 To reduce administrative complexity all small generators transferring from RO to FITs from 1/4/10 will have a six month reduction in support. All small generators transferring from RO to FITs from 1/4/11 will have an eighteen month reduction in support.
Small generators that commissioned on or after 15/7/09 but have not applied for RO accreditation prior to 1/4/10 which make a one-off choice as to which of the two schemes they join. There are approximately 6000 potential migrants.
Micro-generators (<50kW) Timeline 15/7/09 Timeline 1/4/10 At FIT rate Timeline At 9p/kWh Stay in RO Fit or RO Small generators 50kW – 5MW RO Application/accreditation Post-FIT result
Impact
Late 2010 :
Total installed capacity under FIT scheme to date - 57.6MW
Majority of schemes are PV.
SHARP factory, Wrexham, N Wales £30 million investment announced to increase PV production to 500MW /annum and increase workforce by 300 by Feb 2011. Energy secretary Chris Huhne overturns law banning councils from selling renewable electricity. Electrical energy production of UK local authorities (0.01% of total ) predicted to increase to 1% of UK total.
Late 2010 :
Renewable energy systems manufacturers attempt to tap into FIT opportunity with price reductions. Small scale wind turbine manufacturers claim disadvantage due to FIT tariff and UK planning laws. e.g. ‘Quietrevolution slashes turbine prices 40 per cent’.
European manufacturers and suppliers shadow most attractive FIT tariffs.
e.g. German integrated package solar manufacturer Centrosolar launches UK subsidiary and obtains UK’s MCS certification for products .
Application made for
5MW
PV solar farm, Lanhydrock, Cornwall .
FIT take-up ( MW) by technology Dec 2010
7% 19% Wind PV Hydro
FIT take-up by installation number Dec 2010
1% 6%
Total: 57.6MW
74% Wind PV Hydro
Total: 17568
93%
Fit take-up (MW) by sector Dec 2010
5% 13% Community Domestic Non-domestic
Total: 57.6MW
82%
FIT take-up by installation number Dec 2010
<2% <1% Community Domestic Non-domestic
Total: 17568
98%
STOP PRESS #1
UK Department of Energy and Climate Change (DECC) FIT installations to 26 Jan 2011 Anaerobic digestion: 2 Hydro: 178 MicroCHP: 36 Photovoltaic: 19854 Wind: 1132 Total: 21,202 Total capacity: 76.66MW
UK Renewable Energy Committment (PV)
2500 2000 1500 1000 500 0 UK PV generation target for 2010 – 2010 2015
Year
2020
Back of an envelope
(assuming 90% new schemes)
40GWh
Installed PV FIT capacity (Jan 2011) = 0.94 x 0.9 x 76.66MW = 64.85MW = 64850kW Assuming 1kW p installed PV generates 750kWh/annum then new PV FIT schemes (Jan 2011) able to generate annually: 64850 x 750 = 48,637,500kWh = 48.64GWh i.e
. 122% of 2010 target
STOP PRESS #2
7 Feb 2011
UK coalition government Energy secretary Chris Huhne announces early comprehensive FIT review assessing: All aspects of the scheme, including eligibility, administration and tariff levels, to be completed by the end of the year Fast track consideration of large scale solar PV Uptake of farm scale anaerobic digestion.
Existing tariffs will remain unchanged until April 2012. The Government will not act retrospectively and any changes to generation tariffs will only affect new entrants. Installations which are already accredited for FITs will not be affected.
The Future – The Renewable Heat Incentive (RHI)
Heat accounts for 47% of UK’s carbon dioxide emissions and 60% of average household bills.
In 2008 UK imported around 25% of its natural gas. Projections suggest that by 2020 this could rise to 60%.
Renewable heat incentive (RHI)
is to encourage a radical change in the way we generate heat on domestic, commercial and industrial scale Unlike Feed-in tariffs there is very little experience of operating this kind of scheme.
Like a Feed-in tariff in so much as renewable heat generator is paid according to generation (kWh). RHI available from April 2011 – PROPOSED
Likely RHI Scheme design
To encourage low carbon heat generation at all scales RHI to support solid biomass, bioliquids (up to 45kW), biogas on-site combustion (up to 200kW), biomethane injection to grid, ground source heat pumps (all scales), air source heat pumps (up to 350kW) and solar thermal hot water schemes (up to 100kW). Single tariff rates varying with technology and scale Amount (kWh) generated may be metered (larger generators) or estimated (’deemed’) for small/medium installations.
No upfront loans and grants for cost of generating equipment and installation.
Payment to heat generators made by Ofgem. Likely to be funded by new levy on fossil fuel suppliers .
European experience –
Vauban district, Freiburg, Germany
European experience – Vauban district, Freiburg, Germany
European experience – Weinbourg, Alsasce, France
Solar farming
Installed capacity: 4.5MW
p Array size: ~ 36,000m 2 No. of panels: 27,500
11:00 26/4/10 Output 2.7MW
Sources of information
www.berr.goc.uk
www.carbontrust.co.uk
www.communities.gov.uk
www.decc.gov.uk
www.energysavingtrust.org.uk
www.epia.org
www.FITariffs.co.uk
www.lowcarboneconomy.com
www.microgenerationcertification.org
www.ofgem.gov.uk
www.sd-commission.org.uk
www.solarcentury.co.uk
Contact details
Neil Packer Faculty of Computing, Engineering and Technology Staffordshire University Beaconside, Stafford, ST18 0AD Tel 01785 353243 email [email protected]
Illustrative Technology: Wind Energy
Factors affecting wind velocity
Elevation above ground Surroundings - Proximity of Built environment Presence of hills or mountains Leeward location , sheltered, low wind velocities Windward location, turned to wind, higher wind speeds Ground cover - surface roughness, slows down wind
Energy in the Wind
Site wind speed is a variable 0.20
0.18
0.16
0.14
0.12
0.10
0.08
0.06
0.04
0.02
0.00
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Wind velocity (m/s) Typical annual wind velocity distribution
mean 4m/s mean 5m/s mean 6m/s mean 7m/s
Horizontal axis wind turbine (HAWT) array Vertical axis wind turbine (VAWT)
Power output of wind turbine
The output of a wind turbine is not constant Wind turbine performance curve 8 7 2 1 0 6 5 4 3 0 2 4 6 8 10 12 14 16 18
wind velocity (m/s)
20 22 24 26 28 30
Typical Power - wind velocity turbine performance
Some ‘Rules of Thumb’
A 1kW wind turbine will typically deliver 2500kWh of energy annually at an annual average wind speed of 6m/s A 6kW wind turbine will typically deliver 11000kWh of energy annually at an annual average wind speed of 5m/s
Cost of installation
Single machines : £4000 - £6000/kW peak Large wind farms: £700/kW peak
Example
A community using 100,000kWh/annum decides to install a 20kW peak wind turbine on common land. The turbine is predicted to generate 45,000kWh/annum of electrical energy.
A FIT supplier says his tariff is based on a ‘
deemed
’ 50% export of generated energy. Grid import electricity is priced at 12.5p/kWh.
What annual income stream (£/annum) can be expected from the installation?
If the cost of installation is £5000/kW peak , determine the simple payback period (years) for the generator.
Income from generated electricity
= Annual energy generation (kWh/ annum) x tariff generation rate( £/kWh) = 45,000 x 0.241 = 10,845 ( £/annum)
Income from exported electricity (‘deemed’ 50% of generated)
= Annual energy generation(kWh/ annum) x 0.5 x tariff export rate( £/kWh) = 45,000 x 0.5 x 0.03 = 675 ( £/annum)
Income from offsetting grid imported electricity
= Annual energy generation(kWh/ annum) x 0.5 x import tariff rate( £/kWh) = 45,000 x 0.5 x 0.125 = 2812.5 ( £/annum)
Generate @24.1p/kWh
45,000kWh
Output for on-site use
22,500kWh
Export to grid @3p/kWh
22,500kWh
Import from grid @12.5p/kWh
77,500kWh
Used on-site
100,000kWh
Total income
= £ 10845 + £ 675 + £ 2812.5 = 14,332.5
£/annum
Simple payback period
= cost of installation(£) /annual income (£/annum) = (20 x 5000) / 14332.5
= 6.977 years