UK Community Wind 2016 Jelte Harnmeijer Renewables Fellow, James Hutton Institute Founding Partner, Scene Consulting Carbon Finance, University of Edinburgh
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
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
Total estimated capacity:
(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
Total estimated capacity:
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)
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)
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)
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)
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){
DevelopmentPhase { Inception Feasibility Pre-Planning Planning Grid Finance Build Operate Decommission
Current bottlenecks faced across the Renewables Industry
Industry-widebottlenecks
‘Saturation’(wind)
Coordinatedopposition (wind)
Transmission-& substationconstraints
Policy uncertainty(e.g. May 2015 UKelections; post-2020 subsidies & targets){
DevelopmentPhase { Inception Feasibility Pre-Planning Planning Grid Finance Build Operate Decommission
Holyrood
Westminster
Bruxelles
Policyambit{
Current bottlenecks faced across the Renewables Industry
Industry-widebottlenecks
‘Saturation’(wind)
Coordinatedopposition (wind)
Transmission-& substationconstraints
Policy uncertainty(e.g. May 2015 UKelections; post-2020 subsidies & targets){
DevelopmentPhase { Inception Feasibility Pre-Planning Planning Grid Finance Build Operate Decommission
✓
✓
✓
✓Holyrood
Westminster
Bruxelles
Policyambit{
Current bottlenecks faced across the Renewables Industry
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
Postponed, possibly cancelled
Postponed, possibly cancelled
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)
DevelopmentPhase { Inception Feasibility Pre-Planning Planning Grid Finance Build Operate Decommission
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
DevelopmentPhase { Inception Feasibility Pre-Planning Planning Grid Finance Build Operate Decommission
Current bottlenecks facing the Community Sector specifically
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
DevelopmentPhase { Inception Feasibility Pre-Planning Planning Grid Finance Build Operate Decommission
✓
✓
✓
✓ ✓Holyrood
Westminster
Bruxelles
Policyambit{
Current bottlenecks facing the Community Sector specifically
Mapped on to relevant ‘policy ambit’
Industry-widebottlenecks
‘Saturation’(wind)
Coordinatedopposition (wind)
Transmission-& substationconstraints
Policy uncertainty(e.g. May 2015 UKelections; post-2020 subsidies & targets){
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
DevelopmentPhase { Inception Feasibility Pre-Planning Planning Grid Finance Build Operate Decommission
All bottlenecks facing the Community Sector
✓
✓
✓
✓ ✓
✓
✓
✓
✓Holyrood
Westminster
Bruxelles
Policyambit{
Industry-widebottlenecks
‘Saturation’(wind)
Coordinatedopposition (wind)
Transmission-& substationconstraints
Policy uncertainty(e.g. May 2015 UKelections; post-2020 subsidies & targets){
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
DevelopmentPhase { Inception Feasibility Pre-Planning Planning Grid Finance Build Operate Decommission
All bottlenecks facing the Community Sector
Mapped on to relevant ‘policy ambit’
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