Renewable Energy & Low Carbon Opportunities

Transcription

1 Renewable Energy & Low Carbon Opportunities 7 October 2015 Ross Jones CARES Development Officer Local Energy Scotland Mel MacRae Senior Development Manager, Community Energy HIE

2 Renewable Energy & Low Carbon Opportunities 1. Community Energy - Vision for the future and challenges 2. Case Studies & Practical Support 3. Discussion groups 15 mins 15 mins 45 mins

3 Scottish Government Community Energy Policy We now need to bring community energy in from the margins of energy policy to make it the central tenet of our future energy systems, where it has a potential to transform local economies Fergus Ewing, Minister for Business, Energy and Tourism Community Energy Policy Statement Sept 2015

4 Scottish Government Community Energy Policy Policy Statement published Sept 2015: Committed to helping communities across Scotland benefit from renewable energy Helping community groups to: become confident, empowered and in charge of their energy think innovatively about energy generation and supply and adopting a local energy economies approach This means using environmentally-friendly technologies to create energy and using that energy locally Achieve target of 500 MW of renewable energy in community or local ownership by 2020

5 Progress to 2020 target Figures as at June 2014

6 Scottish Government Support Community and Renewable Energy Scheme (CARES) delivered by Local Energy Scotland Renewable Energy Investment Fund (REIF) and Local Energy Investment Fund (LEIF) delivered by Scottish Investment Bank Local Energy Challenge Fund (LECF) delivered by Local Energy Scotland Low Carbon Infrastructure Transition Programme (LCITP) delivered through Scottish Enterprise and HIE

7 Scottish Government Good Practice Guides Set out expectations and supportive guidance for both communities and developers: Community Benefits from Onshore Renewable Energy Developments Shared Ownership of Onshore Renewable Energy Developments

8 Barriers to growth in Community Energy Energy projects have higher capital costs Require longer lead in times and suffer from volunteer fatigue Can be delayed by grid connection Further compounded by UK Govt s proposed measures to control costs: End of Renewable Obligation Certificates (ROCs) Removal of Contracts for Difference (CfD) for Onshore Wind Feed-in Tariff Scheme (FITs) - Removal of preliminary accreditation from 1 Oct - Review of FITs (DECC consultation closes 23 Oct)

9 Looking Ahead Clear commitment from Scottish Government Greater opportunities for shared ownership Market response to reduction in subsidy = reduction in costs Release of grid capacity Potential for Remote Scottish Islands CfD strike price Potential that communities may be able to pre-accredit Face of funding may change: - rise of community co-ops - return of grant compatibility to assist projects in early stages that do not impact FITs

10 Creating Local Energy Economies Image: CES/HIE Local Energy Economies Programme

11 Creating Local Energy Economies Greater demand for cross sector collaboration Move to create local energy economies: Domestic demand-side management Other alternative local demand: hydrogen Energy storage Electric vehicles for grid balancing Developing generator consortia for sharing grid costs Local finance for new energy infrastructure

12 Case Studies & Practical Support

13 Project case study 1 Local energy system Applicant Consortium of private sector renewable developer, community development trust and third sector housing association

14 Project case study 1 Local energy system Project Local energy economy, wind/marine small scale generation, grid management, storage and supply company Project Small wave generation Small wind Thermal stores Analysis of battery market Hydrogen option EV option Local energy model

15 Project case study 2 Local energy system Applicant Led by community trust in partnership with charitable body, public asset land owner

16 Project case study 2 Local energy system Project Local energy economy, wind generation, development of HV grid, storage and supply company Project Small wind Battery storage Hydro potential Flywheel (existing) Local energy business /legal models

17 LCITP support available LCITP support Financial and non financial support for project management, technical support, legal and financials 80% intervention rate (communities & social enterprises) 20% project contribution through other funding obtained by community and private sector development time Catalyst Initial strategy development and feasibility work Key in your text here please Development Final business case, investment options and investment propositions Key in your text here please Demonstator Where a technology is not proven in Scotland capital support may be available to demonstrate its commercial viability

18 Support Initiatives CARES Grant & Loan Funding including LECF Tool Kit, Contractor Framework and Development Officer Network LCITP new European Regional Development Fund (complements CARES and works closely with LECF) New complimentary initiatives in Highlands and islands HI-SHARES (working title) Community Energy Accelerator RECENT

19 New HI-SHARES (run by LES) Shared ownership Communities and social enterprises taking a share of revenues from commercial developments Register an interest with HIE

20 New Intensive acceleration support (starts November) Community energy accelerator Intensive programme of support through coaching, mentoring and specialist advice Pilot of groups Register an interest with HIE

21 New EU NPA RECENT Support for communities developing on SW assets Partnership project with Scottish Water Link WTW sites and community generation in H&I Best practice guidance for developing on SW estate

22 Discussion groups Consider the barriers that your community faces when considering renewable generation What are the barriers? What can you do as communities? How can we support you?

23 Project Experience Organisation Barra & Vatersay Coigach Durness Eday Fair Isle Fetlar Kinlochbervie Knoydart Kyle & Lochalsh Lochcarron Melness & Tongue Morvern Muaitheabahail (Lewis) Papay Rasaay Rum Sanday Scourie SW Mull & Iona Tiree Ullapool Community Trust Ulva Ferry Unst Project type Wind Wind/Hydro generation Wind /Storage Local Energy System Local Energy System Hydro Wind Shared Ownership Hydro Local Energy System Wind Hydro generation Energy Storage