Technology and Solar Energy UK opportunities round up for ...solar-media.s3.amazonaws.com/assets/presentations...Community energy • Smart grids • District heating and CHP ... -

Copyright © Encraft Ltd 2014 T: 01926 312 159 | www.encraft.co.uk

Technology and opportunities round up for non-engineers

Solar Energy UK 16 October 2014 Matthew Rhodes


Agenda

• About Encraft • Why an integrated approach to renewables is best • Financial opportunities • Technology options • Project development and technology selection


Encraft is an engineering and building physics consultancy

Distributed Energy Projects

• Community energy

• Smart grids

• District heating and CHP

• Feasibility studies

• Project development

• Programme management

Web Applications Building Physics

The company has grown from a start-up in 2003 to employ 20 well-qualified staff and operate in three specialist areas

• Certified Passivhaus Consultants

• Building energy modelling

• Very low carbon retrofit

• First-principles design

• Technology analysis

• Microgeneration specification tools

• Planning compliance

• Asset review

• Bespoke web applications

• Mobile devices

CUSTOMER-LED INNOVATION


Why an integrated approach to renewables projects is best

All renewables projects are solar projects, …. ……. but not all solar projects involve panels. To a man who has only a hammer, the whole world looks like a nail*…. (……. which doesn’t always lead to happy outcomes.)

*A.Maslow


All renewables projects start from local resources and needs

• Resources • Demand • Infrastructure


The financial opportunity is substantial

Birmingham > £5.1 billion spent on energy (£6.6bn+ by 2022) > Investments of £3.6 bn could generate £954 million p.a. savings

Northamptonshire

> £1.2 billion investment opportunities, £80m revenue (2010 estimates)

Warwick District > £250m investment opportunities, £25m revenue (2011)

Worcestershire

> £1.4bn economic investment potential, 197 jobs now (buildings alone)


But taking advantage of opportunities requires local leadership and focus

0

10

20

30

40

50

60

70

£mill

ion

Relative Financial Opportunities by Policy Area for a typical District (Jan 2012)

15 year capital Annual revenue


Look at financial and risk characteristics not just technologies

Economic/practical Potential

(MWh/annum) Capital cost

Annual Revenue (/annum) CO2 savings (tonnes/yr)

Revenue predictability Assignable

Property-linked

Wind 94,962 £54.6m £5.2m N/A 40,830 High/Medium

Solar 11,372 £50m-£60m £3.9m £613,460 4,840 High

Biomass 6,953 £2.6m N/A £173,900 2,184 Medium

Hydro 110 £0.22m £21,000 N/A 50 Medium

Ener

gy E

ffic

ienc

y

in b

uild

ings

Lighting 9,236 £1.6m N/A £1.01m 3,970 Medium/Low

Double Glazing 31,596 £47.6m N/A £1.11m 6,450 Medium/Low Insulation

5,126 £2.8m -£3.8m

N/A £184,280m 1,046 Medium/Low

BEMS 10,512 £2.9m N/A £313,200 2,680 Medium

Total 169,867 £162m-£173m

£9.2m £3.4m 62,049 -

Potential projects on County Council-owned assets only


Most technologies in this sector are relatively mature and proven


Wind power – extracting solar energy from the air

01926 312159 www.encraft.co.uk 6b Park St Leamington Spa CV32 4QN UK

commercial community small micro

Technically – bigger and exposed is better than small and sheltered…..

£320 000 4-6 years

820 000 kWh p.a.

£20 000 5-25 years

8000-15000 kWh p.a.

£4 000 40-500 years

100-1000 kWh p.a.


Biomass systems extract solar energy from organic matter

01926 312159 www.encraft.co.uk

3 Chapel Court Leamington Spa CV32 4YS UK


Ground source heat pumps extract solar energy from the ground


Air source heat pumps extract solar energy from the air in the same way


Hydropower is wonderful but projects are very hard to develop

(They extract solar energy from the water cycle…)


Cost should not be an issue 01926 312159 www.encraft.co.uk 6b Park St Leamington Spa CV32 4QN UK

Cavity wall insulation 0.6kW 4 £250 0 50 0.1 0.1Nuclear 1600MW 11165000 £2Bn £66M 40 1.0 14.0Clean coal IGCC 480MW 2988480 £480M £23M 40 1.5 14.0Wind onshore 1.8MW 3000 £1.8M £30k 25 3.4 14.0Biomass 11kW 8.75 £2.8k £200 15 4.4 4.4Gas heating 11kW 8.87 £1.7k £300 15 5.5 5.5Energy efficiency (top) 250kW 1600 £4.8M 0 50 6.0 6.0Solar PV 2kW 1.55 £3k £10 25 8.3 8.3Solar water 1kW 1 £1.6k £20 25 8.4 8.4Small wind 6kW 12 £25k £100 15 8.8 8.8Microhydro 5kW 18 £50k £1k 50 11.1 11.1Micro wind* 1.5kW 1 £4k £100 25 26.0 26.0

Price to consumer p

per kWh

Cost per kWh

(pence)Capital costsLife (yrs)

Annual running

costsTechnology

Annual output MWhCapacity

* on an ideal site only

This analysis is undiscounted and ignores grant incentives, renewable obligation certificates and feed in tariffs.

Please note that the costs and benefits for all renewables can vary by factors of 2-20 depending on location and installation costs – all figures should be re-calculated for specific contexts


The real issues with renewables are site selection and how you do projects

Theoretical energy costs to customers 2005 - technology, installation and maintenance only

0

2

4

6

8

10

12

14

Gridelectricity

Cavity wallinsulation

Micro-hydro Biomass Micro-chp Micro-wind Solar water Solar PV

Pen

ce p

er k

Wh

(u

nd

isco

un

ted

)

Other microgeneration project costs and benefits to add to baseline

Regulation, service,

organisation, tax

ROCs (if accessible)

Costs of capital

0

-2

-4

2

4

6

8

10

12

Penc

e pe

r kW

h Planning

Location

These figures include grants under current schemes, where applicable. Maintenance is included and costs are calculated over the lifetime of the microgeneration equipment. All are from real projects or technical feasibility studies.

Baseline energy costs to domestic customers by technology

(2005) The range in all these figures depends on how projects are

implemented, how energy companies are organised

and what local and national regulations apply


Evaluating renewables – some key principles and pointers

Work with annual energy not momentary power (unless off grid) • Average UK house

- 20 000 kWh a year heat - 4 000 kWh a year electricity

Grid connection and planning • Mostly only issues above 100kW and conservation areas People matter • Who may be affected, and how And above all……

Location, location, location

Start here!


Community energy is the future

Within existing market

Market transformation

Structural investment

• Switching (incentives)

• Procurement savings

• Energy efficiency projects

• Renewable projects with managed ROI (FIT/RHI)

• Local energy companies

• Storage

Marketing investment for

utilities

Benefits to occupants only

Benefits to occupants and

investors

More efficient market outcomes

for all

Most community projects tend to start here More varied funding sources


More information

Matthew Rhodes [email protected] 01926 312159 www.encraft.co.uk Encraft Perseus House 3 Chapel Court Holly Walk Leamington Spa CV32 4YS

mailto:[email protected]

Documents

Technology and Solar Energy UK opportunities round up for ...solar-media.s3.amazonaws.com/assets/presentations...Community energy • Smart grids • District heating and CHP ... -