Mak Đukan UNDP Croatia Environmental Governance Programme Renewable energy cooperatives project. Developing renewable energy cooperatives

Transcription

1 Mak Đukan UNDP Croatia Environmental Governance Programme Renewable energy cooperatives project Developing renewable energy cooperatives

2 CONTENTS 1. Renewable energy cooperatives project 2. Methodology for developing a energy cooperative 3. Difficulties we encounter in Croatia

3 Why do we need energy cooperatives? Society Environment Economy Mickey mouse model of sustainability

4 Why do we need energy cooperatives? Policymaking Policymaking Top down listen and do Bottom up just do it The people The people

5 The sindroms NIMBY Not in my back yard BANANA Build absolutely nothing anywhere near anything PIBBY Put in black s back yard SOBBY Some other bugger s back yard

6 Renewable energy cooperatives project Implemen'ng partners Project partners

7 Renewable energy cooperatives project Manual on setting up energy cooperatives in Croatia Ten seminars on energy cooperatives in different locations across Croatia Project web site as a platform for knowledge sharing and keeping stakeholders up to date Three pilot energy cooperatives established and technical support provided

8 Like us! Facebook: Energetske zadruge

9 Refference: Đukan Mak, Energy cooperatives as a new model for renewable energy development in Croatia: investigation into Gundinci municiplaity, Trier University of Applied Sciences, Institute for Applied Material Flow Management, Master of Engineering in Material Flow Management thesis, February 2013 Mentors: Prof. Peter Heck, Prof. Michael Knaus External mentors: PhD Zoran Aralica, Institute of Economics Zagreb, zaralica@eizg.hr Developing a biogas energy cooperative: case study in Gundinci municiplaity

10 How does a biogas plant work? #4 #2 #3 #5 #1 Izvor: GreenTech Opportunities

11 What does it look like in real life? #5 Sylos for energy crops #2 #4 #3 #1

12 Why Gundinci?

13 Gundinci Izvor: Google Maps

14 ü 2000 inhabitants ü 50% to 70% development compared to Croatian average ü Animal husbandry Photo by Mak Đukan

15 Broj!ivotinja u Brodsko-posavskoj!upaniji (2001)! Motivation # 1: Highest number of animals in County 7;8/4*"(=4+/4B/" 7;8/4*"E);-3>9" 7;8/4*"E):>9"" 7;8/4*"E93/1*"F-;*4/B*"" 7;8/4*"2<*)-"G9<)-.-"293-"" 7;8/4*"2<*)*"()*+/01*"" 7;8/4*"23*.-451/"I*J*B" 7;8/4*"2/1/)9.B/"" 7;8/4*"2/:/4>" 7;8/4*"H909<*)/"" 7;8/4*"G-+B)1*.3>9"" 7;8/4*"7)3-.*B"" 7;8/4*"7;)/5*.B/"" 7;8/4*"71=D*4/" 7;8/4*",-.*"F*;93*"" 7;8/4*"F3*1*)" 7;8/4*"(-)4>/"6-C/89.B/"" 7;8/4*"(-)4>*"E):*"" 7;8/4*"(*)*D/4" 7;8/4*"@)*C*3/8" 7;8/4*"@-4>/"A4+)/>9.B/"" 7;8/4*"@*.-)"" 7;8/4*"?9)4/1"" 7;8/4*"6=1-.3>9"" 7;8/4*"6)-+51/"2<=;4/1"" 78/4*"69:9)/4*"" ()*+"23*.-451/"6)-/+" ()*+",-.*"()*+/01*""?*K39" G/C5"" G-=3<)L"M!N""!" #!!!" $!!!" %!!!" &!!!" '!!!!" '#!!!" '$!!!" '%!!!" '&!!!"

16 A Motivation # 2: Inefficient manure management Storage that is not in compliance with the Nitrates directive 1) Size of storage facility 2) Water permeability Photo by Mak Đukan

17 B Distance of water way is 10 m Environmental effects 1) Local water contamination 2) GHG emissions 3)... Photo by Mak Đukan

18 1 ton solid cattle manure = 130 kwh ekv. in methane = 90 days of non stop working of 1 light bulb of 60 W

19 Motivation # 3: Suitable sites for biogas plants

20 The methodology

21 #1 Material Flow Analysis Quantities, qualities and source of biogas feedstock #2 Innovative-Cooperation Capacity The farmers capacity to innovate and cooperate #3 Pre feasability study for biogas plant Financial indicators for multiple scenarios

22 Material Flow Analysis

23 System boundary: what resources are there in Gundinci?

24 Data collection 43 face to face structured interviews

25 Coverage rate!"#$%#&'()*+,(( -"./,0 1&2$"%,%(#&( ,09',(09),(!"#$%&"'() *+*, -. /012'3)4051) *66 *+ 7-.!"#$%&'()$ *+ **,,.,(&--$%&'()$./0 * 7. 8#9'2:)9#2'(2;<$) = = 766. >?&%5 * 6 6.

26 Questionnaire structure Basic farm data Number of animals Manure management practice Land under cultivation Availability of land for energy crop growth Material Flow Analysis Innovative capacity Manure management quality Investment into own land Development of number of animals and cultivated land area over time Future ambitions Willingness to: Supply the biogas plant with manure Grow energy crop Invest jointly into the biogas plant Cooperation capacity

27 Photo by Mak Đukan

28 Photo by Mak Đukan

29 5 times per year

30 Innovativecooperation capacity Farmers total biogas potential How much manure there is in total? Minus potential from farms without Capacity to Innovate Do the farmers have the mental capacity to innovate their manure management? Minus potential from farms without Capacity to Cooperate Do they see the benefits of cooperation and are they willing to? USE THIS TO MODEL BIOGAS PLANT kw installed BUT HOW TO DO THIS?

31 Biogas partner grading mechanism BIOGAS POTENTIAL Share Volume of biogas from manure (and availability of land for energy crops growth) 40% INNOVATION CAPACITY Culivated land and number of animals compared to last five years, future ambitions, share of own land, manure management quality 30% COOPERATION CAPACITY Willingness to supply manure, grow energy crops and invest with other farmers into a communal biogas plant 30% Total 100%

32 Research results!! Installed capacity of 650 kw!! Electricity production from biogas using the surveyed manure and energy crop (ratio 8:2) would suffice for 156% of yearly electricity demand of Gundinci municipality

33 Economics: main findings Above the hurdle rate of 8.6% = projects are acceptable Worst case scenario IRR 11.34%, payback of years Best case scenario IRR of 15.17%, payback of 8 years Low sensitivity to changes in energy crop prices

34 90% of farmers would provide manure, 46% grow energy crops and 70% invest Indikator kooperacije! $""(# &#,"(# +"(# '"(# $'# $"# %"(# *"(# )"(#!"(# &"(#!"# $%# &!# C8# -.# $"(# "(# -./0#10#2345# /0#10#838928:;<8#10/5<8#

35 Energy coop example from CRO

36 Energy cooperative Island Krk ü Zero Emission Strategy indicated to the need to incorporate citizens ü Energy cooperative with 19 founders Ø Komunalno poduzeće, Eko Kvarner, City of Krk ü The cooperative lowers cost of project doccumentation and equipment instalation

37 Sending flyers to locals received 270 back

38 Obstacles in Croatia

39 The obstacles Top down Lack of institutional support Inconsistency of local and national government Bad policies (quota on solar energy) Red tape Bottom up Negative connotation with socialism Lack of education and skills at the local level Lack of capacity to self-organize Risk averseness Finance

40 GERMANY Central and regional authority, ministries, institutions that monitor cooperatives: Legal framework Financing programs and support National federation (with services like consultancy, coop audit etc.) Service National cooperative centres Regional federations (with different services) Share Regional coop organizations ( like co-op banks) Local cooperatives Agricultural, banking, consumer, energy coops etc. Members/Cooperative clients (small and medium enterprises, farmers etc.) Self help organizations (formal and informal)

41 CROATIA Croatian cooperative association and ministries Legal framework Financing programs and support Local cooperatives Agricultural, banking, consumer, energy coops etc. Members/Cooperative clients (small and medium enterprises, farmers etc.) Self help organizations (formal and informal)

42 The obstacles Top down Lack of institutional support Inconsistency of local and national government Bad policies (quota on solar energy) Red tape Bottom up Negative connotation with socialism Lack of education and skills at the local level Lack of capacity to self-organize Risk averseness Finance

43 Questions for discussion Are energy cooperatives the best model for citizen energy? What are the energy cooperatives development in your country? Can we copy the European model in the Balkans?

44 Thanks! Kontakt Mak Đukan, M.Sc & M.Eng