Renewable Options Report Final (2)

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2

Contents

List of Figures ........................................................................................................................................... 3

List of Graphs ........................................................................................................................................... 3

List of Tables ............................................................................................................................................ 3

Acronyms ................................................................................................................................................. 3

Introduction ............................................................................................................................................. 4

Wind ......................................................................................................................................................... 4

Norvento nED 100 kW (24m blade diameter) ..................................................................................... 6

Simple Cash flow for Norvento nED 100 ......................................................................................... 7

Discounted Cash flow – Scenario 1 .................................................................................................. 8

Discounted Cash flow – Scenario 2 .................................................................................................. 9

Endurance E3120 50 kW (19.2m blade diameter).............................................................................10

Simple Cash flow for Endurance E3120 .........................................................................................11

Discounted Cash flow – Scenario 1 ................................................................................................12


Summary ............................................................................................................................................14

Solar Photovoltaics ................................................................................................................................15

Maximising roof area 123kW nominal power – Monocrystalline cells .............................................15

Simple Cash flow for 123kW Monocrystalline PV array ................................................................18



50kW nominal power – Monocrystalline cells ..................................................................................21

Simple Cash flow for 50kW Monocrystalline PV array ..................................................................23



Summary ............................................................................................................................................26

CHP / Heat Recovery ..............................................................................................................................27

Conclusion ..............................................................................................................................................27

Appendix ................................................................................................................................................28

3

List of Figures

Figure 1. Proposed site location .............................................................................................................. 5

Figure 2. Left, Norvento 100kW. Right, Endurance 50kW.....................................................................14

Figure 3. Warehouse rooftop PV ...........................................................................................................26

List of Graphs

Graph 1. Power Curve of Norvento nED 100 Wind Turbine .................................................................... 6

Graph 2. Power Curve of Endurance E3120 Wind Turbine ...................................................................10

Graph 3. System Outputs & Incomes (123kW Array) ............................................................................17

Graph 4. System Outputs & Incomes (50kW Array) ..............................................................................22

List of Tables Table 1. Wind turbine tariffs (April 2016) ................................................................................................ 5

Table 2. PV tariffs (April 2016) ...............................................................................................................15

Table 3. 123kW system output ..............................................................................................................16

Table 4. 50 kW System ...........................................................................................................................21

Table 5. Best cases for Wind and PV .....................................................................................................28

Acronyms

FiT – Feed-in tariff ROI – Return on investment

RHI – Renewable heat incentive IRR – Internal rate of return

AMSL – Above mean sea level CHP – Combined heat and power

AGL – Above ground level DNO – Distribution Network Operator

PV – Photovoltaics ROC’s – Renewable Obligation Certificates

NPV – Net present value

4

Introduction

With Puffin expanding year on year, it’s inevitable the energy consumptions will rise. Finding

technologies that help reduce energy demand and increase efficiency is important for the

company. This is true in terms of saving money but also to reduce the overall carbon footprint

because the value of having a green image is becoming increasingly significant. Both from the

retail and consumer point of view.

The lack of committed government policy plans for renewable energy has meant incentives

such as the feed in tariff (FiT) and renewable heat incentive (RHI) have been drastically cut

recently. However projects may still be viable if a large proportion of energy can be consumed

on site.

The main and new cold store sites both have good grid connections and accessibility with 11

KVA substations. According to the Western Power distribution generation map, the main site

has about 1 MW of spare capacity and the new cold store site 1.8 MW.

In order to connect to the grid, a formal application has to be made. The Distribution Network

Operator (DNO) will then be in touch to find the most cost effective grid connection method.

It can take up to 65 working days to get a formal offer from a DNO, though some are quicker.

Wind

The new cold store site identified below in Figure 1 is under the Inner Horizontal Surface for

the Haverfordwest Aerodrome which means the height can’t exceed 86m above mean sea

level (AMSL). Since the ground level in this area is around 35m AMSL (according to OS data),

a wind turbine of under 50m above ground level (AGL) to tip should be ok. Typical tower

heights for turbines ranging from 50 to 800 kW are around 24m, 30m, 36m, 40m, 50m, 60m

and 75m. This means the maximum possible hub height for the area is 36m with 28m

diameter blades. The Norvento 100 kW turbine falls into this category, having available tower

heights of 24.5m, 29.5m and 36m with either 22 or 24m diameter blades and could suit well.

Going for the tallest tower permissible is advantageous since wind speed increases with

distance from the ground. Roughly for each 1m increase in hub height of a farm wind turbine

the annual energy production increases by 0.5%. Therefore it is always financially better to

opt for the highest tower available, provided you can get planning consent. Interpolating wind

speeds from the NOABL wind database between 25 and 45m AGL has shown the site has a

wind speed of roughly 5.92 m/s at 36m AGL.

5

Wind Installation Size

Feed-in Tariff (from April 2016)

Export Tariff

0-50 kW 8.46 p/kWh 4.91 p/kWh

50-100 kW 7.61 p/kWh 4.91 p/kWh

100-1500 kW 4.89 p/kWh 4.91 p/kWh > 1500 kW 0.85 p/kWh 4.91 p/kWh

Table 1. Wind turbine tariffs (April 2016)

Figure 1. Proposed site location

6

Norvento nED 100 kW (24m blade diameter)

Assumptions

Net annual power output (kWh) 258,717

Electricity Price (£/kWh) £ 0.1045

Annual O+M Costs £ 4,800

Capital Cost £ 330,000

Fit Tariff (£/kWh) £ 0.0761

Export Tariff (£/kWh) £ 0.0491

Electricity Consumed on site Est (kWh) 1,021,488

Electricity to export (kWh) 0

Electrical losses expressed as efficiency 0.95

Turbine availability factor 0.95

Capacity factor 29.5%

Mean Wind speed @ 36m agl (m/s) 5.92

Graph 1. Power Curve of Norvento nED 100 Wind Turbine

7

Simple Cash flow for Norvento nED 100

Year Cash Outflows Inflows (Savings) Net Cash Flows Cumulative NPV

0 £ 330,000 £ 0 -£ 330,000 -£330,000

1 £ 4,800 £ 46,724 £ 41,924 -£288,076

2 £ 4,800 £ 46,724 £ 41,924 -£246,151

3 £ 4,800 £ 46,724 £ 41,924 -£204,227

4 £ 4,800 £ 46,724 £ 41,924 -£162,303

5 £ 4,800 £ 46,724 £ 41,924 -£120,379

6 £ 4,800 £ 46,724 £ 41,924 -£78,454

7 £ 4,800 £ 46,724 £ 41,924 -£36,530

8 £ 4,800 £ 46,724 £ 41,924 £5,394

9 £ 4,800 £ 46,724 £ 41,924 £47,319

10 £ 4,800 £ 46,724 £ 41,924 £89,243

11 £ 4,800 £ 46,724 £ 41,924 £131,167

12 £ 4,800 £ 46,724 £ 41,924 £173,091

13 £ 4,800 £ 46,724 £ 41,924 £215,016

14 £ 4,800 £ 46,724 £ 41,924 £256,940

15 £ 4,800 £ 46,724 £ 41,924 £298,864

16 £ 4,800 £ 46,724 £ 41,924 £340,789

17 £ 4,800 £ 46,724 £ 41,924 £382,713

18 £ 4,800 £ 46,724 £ 41,924 £424,637

19 £ 4,800 £ 46,724 £ 41,924 £466,562

20 £ 4,800 £ 46,724 £ 41,924 £508,486

Payback 8 Years

ROI 54.1%

Profit after 20 years £ 508,486

IRR 11.2%

8

Discounted Cash flow – Scenario 1

Discount at rate of inflation (2.5%)

Payback 9 Years

ROI 54.1%


IRR 8.5%

Year Cash

Outflows Inflows

(Savings) Net Cash

Flows Discount

Factor Discounted Cash Flows

Cumulative NPV

0 £330,000 £0 -£330,000 1.000 -£330,000 -£330,000

1 £4,800 £46,724 £41,924 0.976 £40,902 -£289,098

2 £4,800 £46,724 £41,924 0.952 £39,904 -£249,194

3 £4,800 £46,724 £41,924 0.929 £38,931 -£210,263

4 £4,800 £46,724 £41,924 0.906 £37,981 -£172,282

5 £4,800 £46,724 £41,924 0.884 £37,055 -£135,227

6 £4,800 £46,724 £41,924 0.862 £36,151 -£99,076

7 £4,800 £46,724 £41,924 0.841 £35,269 -£63,806

8 £4,800 £46,724 £41,924 0.821 £34,409 -£29,397

9 £4,800 £46,724 £41,924 0.801 £33,570 £4,173

10 £4,800 £46,724 £41,924 0.781 £32,751 £36,924

11 £4,800 £46,724 £41,924 0.762 £31,952 £68,876

12 £4,800 £46,724 £41,924 0.744 £31,173 £100,049

13 £4,800 £46,724 £41,924 0.725 £30,413 £130,462

14 £4,800 £46,724 £41,924 0.708 £29,671 £160,133

15 £4,800 £46,724 £41,924 0.690 £28,947 £189,080

16 £4,800 £46,724 £41,924 0.674 £28,241 £217,322

17 £4,800 £46,724 £41,924 0.657 £27,552 £244,874

18 £4,800 £46,724 £41,924 0.641 £26,880 £271,755

19 £4,800 £46,724 £41,924 0.626 £26,225 £297,979

20 £4,800 £46,724 £41,924 0.610 £25,585 £323,565

9


Discount at internal cost of capital (4%)

Year Cash

Outflows Inflows

(Savings) Net Cash

Flows Discount


Cumulative NPV

0 £330,000 £0 -£330,000 1.000 -£330,000 -£330,000

1 £4,800 £46,724 £41,924 0.962 £40,312 -£289,688

2 £4,800 £46,724 £41,924 0.925 £38,761 -£250,927

3 £4,800 £46,724 £41,924 0.889 £37,271 -£213,656

4 £4,800 £46,724 £41,924 0.855 £35,837 -£177,819

5 £4,800 £46,724 £41,924 0.822 £34,459 -£143,361

6 £4,800 £46,724 £41,924 0.790 £33,133 -£110,227

7 £4,800 £46,724 £41,924 0.760 £31,859 -£78,368

8 £4,800 £46,724 £41,924 0.731 £30,634 -£47,734

9 £4,800 £46,724 £41,924 0.703 £29,455 -£18,279

10 £4,800 £46,724 £41,924 0.676 £28,323 £10,044

11 £4,800 £46,724 £41,924 0.650 £27,233 £37,277

12 £4,800 £46,724 £41,924 0.625 £26,186 £63,463

13 £4,800 £46,724 £41,924 0.601 £25,179 £88,641

14 £4,800 £46,724 £41,924 0.577 £24,210 £112,851

15 £4,800 £46,724 £41,924 0.555 £23,279 £136,131

16 £4,800 £46,724 £41,924 0.534 £22,384 £158,514

17 £4,800 £46,724 £41,924 0.513 £21,523 £180,037

18 £4,800 £46,724 £41,924 0.494 £20,695 £200,732

19 £4,800 £46,724 £41,924 0.475 £19,899 £220,631

20 £4,800 £46,724 £41,924 0.456 £19,134 £239,765

Payback 10 Years

ROI 54.1%


IRR 6.9%

10

Endurance E3120 50 kW (19.2m blade diameter)

Assumptions

Net annual power output (kWh) 150,545

Electricity Price (£/kWh) £ 0.1045

Annual O+M Costs £ 3,500

Capital Cost £ 320,000

Fit Tariff (£/kWh) £ 0.0846

Export Tariff (£/kWh) £ 0.0491

Electricity Consumed on site Est (kWh) 1,021,488

Electricity to export (kWh) 0

Electrical losses expressed as efficiency 0.95

Turbine availability factor 0.95

Capacity factor 34.4%

Mean Wind speed @ 36m agl (m/s) 5.92

0

10

20

30

40

50

60

70

0 5 10 15 20 25 30

Po

we

r O

utp

ut

(kW

)

Wind Speed (m/s)

Endurance E3120

Graph 2. Power Curve of Endurance E3120 Wind Turbine

11

Simple Cash flow for Endurance E3120


0 £320,000 £0 -£320,000 -£320,000

1 £3,500 £28,468 £24,968 -£295,032

2 £3,500 £28,468 £24,968 -£270,064

3 £3,500 £28,468 £24,968 -£245,096

4 £3,500 £28,468 £24,968 -£220,128

5 £3,500 £28,468 £24,968 -£195,160

6 £3,500 £28,468 £24,968 -£170,192

7 £3,500 £28,468 £24,968 -£145,224

8 £3,500 £28,468 £24,968 -£120,256

9 £3,500 £28,468 £24,968 -£95,287

10 £3,500 £28,468 £24,968 -£70,319

11 £3,500 £28,468 £24,968 -£45,351

12 £3,500 £28,468 £24,968 -£20,383

13 £3,500 £28,468 £24,968 £4,585

14 £3,500 £28,468 £24,968 £29,553

15 £3,500 £28,468 £24,968 £54,521

16 £3,500 £28,468 £24,968 £79,489

17 £3,500 £28,468 £24,968 £104,457

18 £3,500 £28,468 £24,968 £129,425

19 £3,500 £28,468 £24,968 £154,393

20 £3,500 £28,468 £24,968 £179,361

Payback 13 Years

ROI - 43.9%


IRR 4.7%

12



Payback 16 Years

ROI -43.9%


IRR 2.1%

Year Cash

Outflows Inflows

(Savings) Net Cash

Flows Discount


Cumulative NPV

0 £320,000 £0 -£320,000 1.000 -£320,000 -£320,000

1 £3,500 £28,468 £24,968 0.976 £24,359 -£295,641

2 £3,500 £28,468 £24,968 0.952 £23,765 -£271,876

3 £3,500 £28,468 £24,968 0.929 £23,185 -£248,691

4 £3,500 £28,468 £24,968 0.906 £22,620 -£226,071

5 £3,500 £28,468 £24,968 0.884 £22,068 -£204,003

6 £3,500 £28,468 £24,968 0.862 £21,530 -£182,473

7 £3,500 £28,468 £24,968 0.841 £21,005 -£161,468

8 £3,500 £28,468 £24,968 0.821 £20,492 -£140,976

9 £3,500 £28,468 £24,968 0.801 £19,993 -£120,983

10 £3,500 £28,468 £24,968 0.781 £19,505 -£101,478

11 £3,500 £28,468 £24,968 0.762 £19,029 -£82,449

12 £3,500 £28,468 £24,968 0.744 £18,565 -£63,884

13 £3,500 £28,468 £24,968 0.725 £18,112 -£45,771

14 £3,500 £28,468 £24,968 0.708 £17,671 -£28,101

15 £3,500 £28,468 £24,968 0.690 £17,240 -£10,861

16 £3,500 £28,468 £24,968 0.674 £16,819 £5,958

17 £3,500 £28,468 £24,968 0.657 £16,409 £22,367

18 £3,500 £28,468 £24,968 0.641 £16,009 £38,376

19 £3,500 £28,468 £24,968 0.626 £15,618 £53,994

20 £3,500 £28,468 £24,968 0.610 £15,237 £69,231

13



Year Cash

Outflows Inflows

(Savings) Net Cash

Flows Discount


Cumulative NPV

0 £320,000 £0 -£320,000 1.000 -£320,000 -£320,000

1 £3,500 £28,468 £24,968 0.962 £24,008 -£295,992

2 £3,500 £28,468 £24,968 0.925 £23,084 -£272,908

3 £3,500 £28,468 £24,968 0.889 £22,197 -£250,711

4 £3,500 £28,468 £24,968 0.855 £21,343 -£229,369

5 £3,500 £28,468 £24,968 0.822 £20,522 -£208,847

6 £3,500 £28,468 £24,968 0.790 £19,733 -£189,114

7 £3,500 £28,468 £24,968 0.760 £18,974 -£170,140

8 £3,500 £28,468 £24,968 0.731 £18,244 -£151,896

9 £3,500 £28,468 £24,968 0.703 £17,542 -£134,354

10 £3,500 £28,468 £24,968 0.676 £16,868 -£117,487

11 £3,500 £28,468 £24,968 0.650 £16,219 -£101,268

12 £3,500 £28,468 £24,968 0.625 £15,595 -£85,673

13 £3,500 £28,468 £24,968 0.601 £14,995 -£70,678

14 £3,500 £28,468 £24,968 0.577 £14,418 -£56,259

15 £3,500 £28,468 £24,968 0.555 £13,864 -£42,395

16 £3,500 £28,468 £24,968 0.534 £13,331 -£29,065

17 £3,500 £28,468 £24,968 0.513 £12,818 -£16,247

18 £3,500 £28,468 £24,968 0.494 £12,325 -£3,922

19 £3,500 £28,468 £24,968 0.475 £11,851 £7,929

20 £3,500 £28,468 £24,968 0.456 £11,395 £19,324

Payback 19 Years

ROI -43.9%


IRR 0.6%

14

Summary

As seen above it would be best to go for the 100kW turbine if planning permits since the

masts of both turbines are 36m and hence capital costs incurred are similar. Yet the nED 100

has an annual energy production of about 1.7 times that of the Endurance. This makes it

significantly more economically viable.

Measures Norvento nED 100 Endurance E3120 Payback (simple) 8 Years 13 Years

ROI (simple) 54.1% -43.9%

IRR (simple) 11.2% 4.7%

Profit after 20 years £ 508,486 £ 179,361

Figure 2. Left, Norvento 100kW. Right, Endurance 50kW

15

Solar Photovoltaics

The new cold store site has roofs facing nearly directly south (azimuth 177°) and have no

shading on them, making it ideal for PV. Each cold store has roughly 760 m² of south facing

roof area. The 3 most common types of PV cells on the market are monocrystalline,

polycrystalline and thin film. Monocrystalline cells are most efficient and therefore most

space efficient. Although they are more expensive compared to polycrystalline because of the

purer silicon. In addition they last the longest – up to 25 years. Polycrystalline is cheaper but

less efficient than monocrystalline and so will require more cells for the same given power

output. Thin film is an emerging technology so are quite expensive and not that efficient but

their flexible nature is leading to many new applications. Calculations have been based of

power outputs from monocrystalline cells.

Maximising roof area 123kW nominal power – Monocrystalline cells

PV Installation Size Feed-in Tariff (from April 2016)

Export Tariff

0-10 kW 4.32 p/kWh 4.91 p/kWh

10-50 kW 4.53 p/kWh 4.91 p/kWh

50-250 kW 2.38 p/kWh 4.91 p/kWh 250-1000 kW 1.99 p/kWh 4.91 p/kWh

Table 2. PV tariffs (April 2016)

Assumptions Store Length (m) 71.4

Store Width (m) 21.4 Pitch (°) 25

Area (m²) 760 Nominal power (kW) 123

Cost/ kW installed (50-250 kW) £ 1,100

O&M Cost/ kW £ 12 Inverter Cost (3x50 kW) £ 11,064

16

Month New Cold store Consumption (2015) (kWh)

System Output (kWh)

Generation Tariff

Electric Savings

January 34649 5123 £ 122 £ 535

February 25343 7345 £ 175 £ 768

March 24429 13289 £ 316 £ 1,389

April 29381 16960 £ 404 £ 1,772

May 31014 18592 £ 442 £ 1,943

June 32310 18645 £ 444 £ 1,948

July 33644 18081 £ 430 £ 1,889

August 32974 16048 £ 382 £ 1,677

September 47535 13921 £ 331 £ 1,455

October 102383 9178 £ 218 £ 959

November 31922 6052 £ 144 £ 632

December 85160 4215 £ 100 £ 440

Total 510744 147449 £ 3,509 £ 15,408

Table 3. 123kW system output

17

As seen above, summer months May, June and July produce the most energy as expected.

Graph 3 also highlights that most of the total income generated comes from the electricity

savings and not the FiT income.

£-

£500.00

£1,000.00

£1,500.00

£2,000.00

£2,500.00

£3,000.00

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

Incc

om

e

Syst

em O

utp

ut

(kW

h)

Monthly System Output & Income of 123kW Monocrystalline Array

System Output (kWh) Electricity Savings FiT Generation Income Total Income

Graph 3. System Outputs & Incomes (123kW Array)

18

Simple Cash flow for 123kW Monocrystalline PV array


0 £146,364 £0 -£146,364 -£146,364

1 £1,476 £18,918 £17,442 -£128,922

2 £1,476 £18,918 £17,442 -£111,481

3 £1,476 £18,918 £17,442 -£94,039

4 £1,476 £18,918 £17,442 -£76,597

5 £1,476 £18,918 £17,442 -£59,155

6 £1,476 £18,918 £17,442 -£41,714

7 £1,476 £18,918 £17,442 -£24,272

8 £1,476 £18,918 £17,442 -£6,830

9 £1,476 £18,918 £17,442 £10,611

10 £1,476 £18,918 £17,442 £28,053

11 £1,476 £18,918 £17,442 £45,495

12 £1,476 £18,918 £17,442 £62,936

13 £1,476 £18,918 £17,442 £80,378

14 £1,476 £18,918 £17,442 £97,820

15 £1,476 £18,918 £17,442 £115,262

16 £1,476 £18,918 £17,442 £132,703

17 £1,476 £18,918 £17,442 £150,145

18 £1,476 £18,918 £17,442 £167,587

19 £1,476 £18,918 £17,442 £185,028

20 £1,476 £18,918 £17,442 £202,470

Payback 9 Years

ROI 38.3%


IRR 10.2%

19



Year Cash

Outflows Inflows

(Savings) Net Cash

Flows Discount


Cumulative NPV

0 £146,364 £0 -£146,364 1.000 -£146,364 -£146,364

1 £1,476 £18,918 £17,442 0.976 £17,016 -£129,348

2 £1,476 £18,918 £17,442 0.952 £16,601 -£112,746

3 £1,476 £18,918 £17,442 0.929 £16,196 -£96,550

4 £1,476 £18,918 £17,442 0.906 £15,801 -£80,749

5 £1,476 £18,918 £17,442 0.884 £15,416 -£65,333

6 £1,476 £18,918 £17,442 0.862 £15,040 -£50,293

7 £1,476 £18,918 £17,442 0.841 £14,673 -£35,620

8 £1,476 £18,918 £17,442 0.821 £14,315 -£21,305

9 £1,476 £18,918 £17,442 0.801 £13,966 -£7,339

10 £1,476 £18,918 £17,442 0.781 £13,625 £6,287

11 £1,476 £18,918 £17,442 0.762 £13,293 £19,580

12 £1,476 £18,918 £17,442 0.744 £12,969 £32,549

13 £1,476 £18,918 £17,442 0.725 £12,653 £45,201

14 £1,476 £18,918 £17,442 0.708 £12,344 £57,545

15 £1,476 £18,918 £17,442 0.690 £12,043 £69,588

16 £1,476 £18,918 £17,442 0.674 £11,749 £81,338

17 £1,476 £18,918 £17,442 0.657 £11,463 £92,800

18 £1,476 £18,918 £17,442 0.641 £11,183 £103,983

19 £1,476 £18,918 £17,442 0.626 £10,910 £114,893

20 £1,476 £18,918 £17,442 0.610 £10,644 £125,538

Payback 10 Years

ROI 38.3%


IRR 7.5%

20



Year Cash

Outflows Inflows

(Savings) Net Cash

Flows Discount


Cumulative NPV

0 £146,364 £0 -£146,364 1.000 -£146,364 -£146,364

1 £1,476 £18,918 £17,442 0.962 £16,771 -£129,593

2 £1,476 £18,918 £17,442 0.925 £16,126 -£113,467

3 £1,476 £18,918 £17,442 0.889 £15,506 -£97,962

4 £1,476 £18,918 £17,442 0.855 £14,909 -£83,052

5 £1,476 £18,918 £17,442 0.822 £14,336 -£68,717

6 £1,476 £18,918 £17,442 0.790 £13,784 -£54,932

7 £1,476 £18,918 £17,442 0.760 £13,254 -£41,678

8 £1,476 £18,918 £17,442 0.731 £12,744 -£28,933

9 £1,476 £18,918 £17,442 0.703 £12,254 -£16,679

10 £1,476 £18,918 £17,442 0.676 £11,783 -£4,896

11 £1,476 £18,918 £17,442 0.650 £11,330 £6,434

12 £1,476 £18,918 £17,442 0.625 £10,894 £17,328

13 £1,476 £18,918 £17,442 0.601 £10,475 £27,803

14 £1,476 £18,918 £17,442 0.577 £10,072 £37,875

15 £1,476 £18,918 £17,442 0.555 £9,685 £47,560

16 £1,476 £18,918 £17,442 0.534 £9,312 £56,872

17 £1,476 £18,918 £17,442 0.513 £8,954 £65,826

18 £1,476 £18,918 £17,442 0.494 £8,610 £74,436

19 £1,476 £18,918 £17,442 0.475 £8,279 £82,714

20 £1,476 £18,918 £17,442 0.456 £7,960 £90,674

Payback 11 Years

ROI 38.3%


IRR 6.0%

21

50kW nominal power – Monocrystalline cells

Capping the nominal power at 50 kW means you can receive the higher FiT rate.

Assumptions

Nominal power (kW) 50 Cost/ kW installed (10-50 kW) £ 1,134

O&M Cost/ kW £ 12

Inverter Cost (50 kW) £ 3,688

Month

New Cold store

Consumption (2015) (kWh)

System Output (kWh)

Generation Tariff

Electric Savings

January 34649 1934 £ 88 £ 202

February 25343 2825 £ 128 £ 295

March 24429 5207 £ 236 £ 544

April 29381 6786 £ 307 £ 709

May 31014 7576 £ 343 £ 792

June 32310 7639 £ 346 £ 798

July 33644 7399 £ 335 £ 773

August 32974 6484 £ 294 £ 678

September 47535 5504 £ 249 £ 575

October 102383 3561 £ 161 £ 372

November 31922 2289 £ 104 £ 239

December 85160 1588 £ 72 £ 166

Total 510744 58792 £ 2,663 £ 6,144

Table 4. 50 kW System

22

£-

£200.00

£400.00

£600.00

£800.00

£1,000.00

£1,200.00

£1,400.00

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

Incc

om

e

Syst

em O

utp

ut

(kW

h)

Monthly System Output & Income of 50kW Monocrystalline Array

System Output (kWh) Electricity Savings FiT Generation Income Total Income

Graph 4. System Outputs & Incomes (50kW Array)

23

Simple Cash flow for 50kW Monocrystalline PV array


0 £60,388 £0 -£60,388 -£60,388

1 £600 £8,807 £8,207 -£52,181

2 £600 £8,807 £8,207 -£43,974

3 £600 £8,807 £8,207 -£35,767

4 £600 £8,807 £8,207 -£27,560

5 £600 £8,807 £8,207 -£19,353

6 £600 £8,807 £8,207 -£11,146

7 £600 £8,807 £8,207 -£2,939

8 £600 £8,807 £8,207 £5,268

9 £600 £8,807 £8,207 £13,475

10 £600 £8,807 £8,207 £21,682

11 £600 £8,807 £8,207 £29,889

12 £600 £8,807 £8,207 £38,096

13 £600 £8,807 £8,207 £46,304

14 £600 £8,807 £8,207 £54,511

15 £600 £8,807 £8,207 £62,718

16 £600 £8,807 £8,207 £70,925

17 £600 £8,807 £8,207 £79,132

18 £600 £8,807 £8,207 £87,339

19 £600 £8,807 £8,207 £95,546

20 £600 £8,807 £8,207 £103,753

Payback 8 Years

ROI 71.8%


IRR 12.2%

24



Year Cash

Outflows Inflows

(Savings) Net Cash

Flows Discount


Cumulative NPV

0 £60,388 £0 -£60,388 1.000 -£60,388 -£60,388

1 £600 £8,807 £8,207 0.976 £8,007 -£52,381

2 £600 £8,807 £8,207 0.952 £7,812 -£44,570

3 £600 £8,807 £8,207 0.929 £7,621 -£36,948

4 £600 £8,807 £8,207 0.906 £7,435 -£29,513

5 £600 £8,807 £8,207 0.884 £7,254 -£22,259

6 £600 £8,807 £8,207 0.862 £7,077 -£15,183

7 £600 £8,807 £8,207 0.841 £6,904 -£8,278

8 £600 £8,807 £8,207 0.821 £6,736 -£1,542

9 £600 £8,807 £8,207 0.801 £6,572 £5,029

10 £600 £8,807 £8,207 0.781 £6,411 £11,441

11 £600 £8,807 £8,207 0.762 £6,255 £17,696

12 £600 £8,807 £8,207 0.744 £6,102 £23,798

13 £600 £8,807 £8,207 0.725 £5,954 £29,751

14 £600 £8,807 £8,207 0.708 £5,808 £35,560

15 £600 £8,807 £8,207 0.690 £5,667 £41,226

16 £600 £8,807 £8,207 0.674 £5,528 £46,755

17 £600 £8,807 £8,207 0.657 £5,394 £52,149

18 £600 £8,807 £8,207 0.641 £5,262 £57,411

19 £600 £8,807 £8,207 0.626 £5,134 £62,544

20 £600 £8,807 £8,207 0.610 £5,009 £67,553

Payback 9 Years

ROI 71.8%


IRR 9.5%

25



Year Cash

Outflows Inflows

(Savings) Net Cash

Flows Discount


Cumulative NPV

0 £60,388 £0 -£60,388 1.000 -£60,388 -£60,388

1 £600 £8,807 £8,207 0.962 £7,891 -£52,497

2 £600 £8,807 £8,207 0.925 £7,588 -£44,909

3 £600 £8,807 £8,207 0.889 £7,296 -£37,613

4 £600 £8,807 £8,207 0.855 £7,015 -£30,597

5 £600 £8,807 £8,207 0.822 £6,746 -£23,852

6 £600 £8,807 £8,207 0.790 £6,486 -£17,366

7 £600 £8,807 £8,207 0.760 £6,237 -£11,129

8 £600 £8,807 £8,207 0.731 £5,997 -£5,132

9 £600 £8,807 £8,207 0.703 £5,766 £634

10 £600 £8,807 £8,207 0.676 £5,544 £6,178

11 £600 £8,807 £8,207 0.650 £5,331 £11,510

12 £600 £8,807 £8,207 0.625 £5,126 £16,636

13 £600 £8,807 £8,207 0.601 £4,929 £21,565

14 £600 £8,807 £8,207 0.577 £4,739 £26,304

15 £600 £8,807 £8,207 0.555 £4,557 £30,861

16 £600 £8,807 £8,207 0.534 £4,382 £35,243

17 £600 £8,807 £8,207 0.513 £4,213 £39,456

18 £600 £8,807 £8,207 0.494 £4,051 £43,507

19 £600 £8,807 £8,207 0.475 £3,895 £47,403

20 £600 £8,807 £8,207 0.456 £3,746 £51,148

Payback 9 Years

ROI 71.8%


IRR 7.9%

26

Summary

As seen above the 123 kW system returns the greatest profit after 20 years but it’s the 50 kW

system that has a significantly higher return on investment and a shorter payback period due

to the higher FiT rate. However further investigation is needed to obtain more accurate

figures for capital and O&M costs.

Measures 123 kW System 50 kW System

Payback (simple) 9 Years 8 Years

ROI (simple) 38.3% 71.8%

IRR (simple) 10.2% 12.2%

Profit after 20 years £ 202,470 £ 103,753

Figure 3. Warehouse rooftop PV

27

CHP / Heat Recovery

Since 19,350 litres of oil were used at 39 p/litre in 2015 for heating, it may be worth looking

into combined heat and power (CHP) or getting a biomass boiler for space heating the offices

and factory/ warming room. CHP is the simultaneous generation of heat and power from the

combustion of a single fuel e.g. gas. CHP generally makes sense on sites with a heat demand

of over 4,500 hours a year which equates to about 12.5 hours a day for 7 days a week

throughout the year. It can typically cut costs by 20% compared to on site boilers and the use

of grid electricity. They also have short payback periods of around 3 to 5 years although the

specific site requirements, technology, fuel and level of heat demand will vary this. There are

no direct grants or funding available but some government incentives include;

Enhanced Capital Allowances

Renewable Obligation Certificates (ROC’s)

RHI

FiT for the first 30,000 gas fired micro CHP units installed

Note the FiT’s are only available for micro CHP (capacity of 2kW or less) at 13.45p/kWh and

the RHI has only been proposed for the useful heat of CHP fueled by qualifying renewable

sources.

Another key area of interest is the warming room. If and when the Airedale unit for the blast

chiller needs replacing, heat recovery should be incorporated and perhaps warm air is ducted

into the warming room to offset the oil fired heater. Furthermore the air compressor in

between the wash room and the holding room could easily be retrofitted to duct the warm

air into a useful space rather than going to atmosphere, saving on heating requirements and

therefore money.

Conclusion

As seen below, both wind and PV have potential to save and generate money for Puffin, with

payback periods between 8 and 10 years for different scenarios. It’s worth noting the wind

turbine calculations have been based on actual quotes whereas the PV has been based more

on estimations.

PV will be quicker to install and easier in terms of planning permission. Wind turbines typically

take 19 months from feasibility to commissioning stage. There may be other planning

constraints with a wind turbine but an in depth feasibility study would be needed to highlight

any possible further issues.

According to OFGEM the future price of FiT rates for PV and wind is set to steadily drop each

year to 3.78 p/kWh and 6.96 p/kWh respectively by 2019 so could be worth doing something

sooner rather than later.

28

Furthermore the National Grid have said the UK is almost certain to miss its EU 2020 targets

for renewable energy. However it’s also recently announced an ambitious carbon target of

reducing carbon emissions 57% by 2030 on 1990 levels. It’s hard to say how this along with

government change could affect the future of renewable energy incentives.

Currently there are no grants available but there are various financing options such as self-

financing, bank (loan) finance and leasing the site to a third-party developer, each with their

own advantages and disadvantages.

I think CHP is definitely worth investigating especially as Puffin is expanding. It’s best to

consider installing at the design stage for a new building as it can be fully integrated into the

design, but it can also be successful retrofitting to existing sites. Furthermore heat recovery

from air compressors and chiller units could help reduce heating demand and save money.

Appendix

Company names…

Forward emails from pembs council/companys

Measures Wind nED 100 PV 50 kW

Payback

Simple 8 Years 8 Years

Discounted (2.5%) 9 Years 9 Years

Discounted (4%) 10 Years 9 Years

ROI

Simple 54.1% 71.8%

Discounted (2.5%) 54.1% 71.8%

Discounted (4%) 54.1% 71.8%

IRR

Simple 11.2% 12.2%

Discounted (2.5%) 8.5% 9.5%

Discounted (4%) 6.9% 7.9%

Profit after 20 years

Simple £ 508,486 £ 103,753

Discounted (2.5%) £ 323,565 £ 67,553

Discounted (4%) £ 239,765 £ 51,148

Table 5. Best cases for Wind and PV

Documents

Renewable Options Report Final (2)