Micro-Renewable Energies

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1 Micro-Renewable Energies Renewable technologies have a direct benefit in terms of climate change mitigation as they have the potential to generate significantly less greenhouse gas or acidifying substances than those using fossil fuels. Nonetheless, renewable technologies and particularly large-scale power generation schemes may have a detrimental impact on other aspects of the natural heritage like animals, habitats and wild landscapes. In most locations and with careful consideration, microrenewable technologies can be successfully installed with minimal effect on nature and landscapes. Micro-renewables refers to installations of less than 50kW (electrical) or less than 45kW (thermal). Farms often have significant power bills and two steps may be envisaged to achieve energy savings: Increase energy efficiency and reduce unnecessary demand (see Energy sheet) When energy needs have been optimised, explore opportunities of producing renewable energy for selfconsumption. Incentives Feed-in Tariffs The Feed-In Tariffs (FIT) scheme means that a business does not need to use all, or even any of the electricity it produces: it can all be exported to the local grid. The farm receives a payment based on how much electricity it generates (regardless of what then happens to it) plus an additional payment for any exported to the grid. Although a farm does not need to use the electricity itself, there is usually an advantage to doing so: a unit of electricity will cost about 12p at the moment, while the payment for export under FITs is only 3p. It means that 9p are gained for every unit of electricity produced and used on farm rather than exported. It should be noted that you may not be eligible for FITs payments if you have benefited from a grant from a public body to purchase and/or install a power generating equipment. More information on FIT eligibility criteria and public schemes such as SRDP can be found on the SRDP website and on the Ofgem (Office of the Gas and Electricity Markets) website: Pages/Grants.aspx Renewable Heat Incentive (under consultation) At the time of writing, the Renewable Heat Incentive (RHI) is under consultation. Like the Feed-In Tariff Scheme, the drafted RHI intends to reward people or businesses that generate their

2 heat requirements from renewable sources. This includes biomass (and also bio-liquids and biogas), heat pumps (ground and airsource) and solar thermal. The system applies at all scales, from individual domestic systems to large industrial or multi-residential installations. For small and medium installations, which would cover most farm-scale applications, the tariff is paid on a deemed rather than a metered basis, so regular annual payments are made on the basis of your predicted heat requirement. Visit the Department of Energy and Climate Change website for more details of the RHI as the consultation process develops. To qualify for FITs or RHI, you must use an installer and technology certified by the Microgeneration Certification Scheme (MCS), which maintains a list of certified installers and technologies on its website ( Micro-renewables and the natural heritage Species likely to be affected by micro-renewable projects include: Birds: risks of collision with wind turbines and disturbance of installation Bats: risks of collision with wind turbines and disturbance if installation involves work on roofs or alterations to buildings Wildlife associated with river ecosystems (e.g. otters, pearl mussels): habitat impacts associated with hydro schemes Wildlife associated with open farmland: displacement following afforestation. These are impacts that may arise from growing the feedstocks rather than from the installations. Through good practice, adverse impacts can be avoided. Detailed advice and information on legal duties applicable to micro-renewable installations can be found in SNH s Micro renewables and the natural Heritage guidance note ( snh.gov.uk/docs/a pdf). Other information on renewable energies and the natural heritage can be found in: Micro-renewable projects may have a detrimental impact on landscapes, sensitive species and habitats. Projects that may affect designated sites (e.g. Sites of Special Scientific Interest, National Scenic Areas) or protected species are likely to necessitate the completion of surveys and consents from SNH. In most cases and with careful design it is possible to combine small-scale installations with biodiversity conservation. Legal Requirements Any work associated with the installation of a microrenewable project should comply with the following regulations: Nature Conservation (Scotland) Act European Natura legislation (relating to Special Protection Areas and Special Areas of Conservation) European protected species Legislation and guidance relating to bats All bats and wild birds, many mammals, plants and their habitats are protected by national or European laws. SNH website: SNH s Guidelines on the environmental impacts of windfarms and small-scale hydroelectric schemes (available online in the Publications section of SNH website). Technologies General considerations The suitability of the technology for a farm will depend on: Resources available on the farm Energy needs Local grid capacity Farm setting, including the landscapes surrounding the farm and the presence of sensitive habitats and species Proximity of neighbours/ nearby communities Planning applications or other requirements for consents or licences may be required. They include amongst others: Planning permission (local authorities) Notification to SNH if the site is in a designated area Licence(s) from SEPA under the controlled activities regulations (CAR)

3 It should be noted that certain types of micro renewable development, when installed at a domestic property, are classed as permitted development, meaning that they do not require planning permission. More information can be found in the (Town and Country Planning (General Permitted Development) (Domestic Microgeneration) (Scotland) Amendment Order 2009): The application of this regulation for non-domestic building is currently under consultation ( uk/resource/doc/318686/ pdf). Wind Wind turbines only generate electricity, which can be used on farm and/or exported to the grid. The rating of a turbine in watts (or kw or MW) refers only to the maximum power output that a turbine can generate and does not fully reflect how many kwh will be generated over time. The yield value of turbines may vary between different models. For example, any 22kW turbine will have a better yield than any 15kW model but two different 15kW models might give significantly different yields over a year. The predicted output of different turbines on different sites can be estimated using the Carbon Trust online assessment tool, or by taking advice, ideally from an installer who is not working with a particular manufacturer. The expected yield from a wind turbine depends on how windy a site is. Information can be found using the Carbon Trust tool or the NOABL windspeed database. Generally, any site with an average annual wind speed above about 6m/s will give a good return on investment but even if the wind speed on the farm is lower than this, a wind turbine may still be financially attractive through the Feed-in Tariffs if electricity is to be used on site. With sensible siting and design, small-scale individual wind turbine may have a limited detrimental impact on the natural heritage. Projects of less than 3 turbines that require planning permission may require a formal Environmental Impact Assessment (EIA) and will generally require a basic level of assessment of their potential impacts on the natural heritage if below EIA threshold. More information on procedures for wind energy projects that do not require an EIA can be found in SNH guidance note: Hydro Hydro power systems only generate electricity. The energy available from a hydro installation depends on: Available flow: this is the fraction of the river that can be used for generating electricity without damaging the ecosystem. It is not unusual to be required to leave 95% of the dry weather flow in the burn for ecological purposes. Head (the difference in height between the abstraction point and the turbine) Efficiency of the equipment On an appropriate site, a medium-scale wind turbine (5-50 kw) will have a return on investment in 3 to 5 years. Wind turbines also benefit from a well-established technology. Note on large-scale wind installations Larger wind power generation projects may have a greater impact on landscapes, sensitive habitats and species than micro-renewables developments. In addition to a planning permission, the Local Planning Authority may consider than an Environmental Impact Assessment (EIA) is required. Local Planning Authorities have a statutory obligation to consider whether or not EIA is required for: Wind energy projects of more than 2 turbines Turbines of more than 15m in height The Local Planning Authority must also consider whether the proposal could have an impact on a sensitive area. More information on the level of assessment required for projects which do require EIA can be found on SNH website ( In order to make the costs of planning larger scale projects more affordable, it may be sensible to work in partnership with a developer or a community group who will lease the site for an annual rent, share of income or a mixture of the two if the project goes ahead. Community groups, in particular can be useful project partners as they can access funding for planning etc., as well as harness public support. Successful partnership can be achieved if the incomes generated by the project are fairly distributed between the ground owner and the community group. The development of a large-scale wind installation on a farm does not affect the owner s ability to get FITs payments from his/her own separate smaller installation. The rules for aggregation of installations can be found on the Department of Energy and Climate Change website ( Hydro power systems are in general more consistent than wind but tend to be more expensive. They have a reasonable return on investment with FITs payments. Nonetheless, potential extensive engineering requires heavy initial investments. River flow data exist for only a very limited number of locations (available from SEPA) and all of these are for major rivers, while individual farms are likely to be considering relatively small scale installations on remote tributaries. For more detailed information on small-scale hydro, refer to the British Hydropower Association.

4 Because of their potential impact on river ecosystems, hydro installations also require a licence from SEPA under the Controlled Activities Regulations, in addition to the planning application. Information can be found on SEPA website ( Bioenergy The type of biomass installations that may be envisaged on farms includes: Biomass heat (e.g. open fires, wood-burning stoves, log gasification boilers, wood chip and pellet boilers) Biomass combined heat and power (CHP) Anaerobic digestion: digestion of organic wastes, such as pig slurry, to generate biogas, which can then be burned in a CHP engine. biofuel production, for example from rapeseed. On-farm sources of biomass may include: Woodfuel from farm woodlands Straw: it should be noted that long-term straw removal for generating bioenergy will lead to a decrease in the organic content of arable soils and may cause problems of erosion, degradation of soil structure and fertility and subsequent reduction in supply to livestock sector. Rapeseed Slurry Silage Energy crops: willow coppicing If planned on appropriate sites and with careful design, it is often possible to combine economic and environmental objectives with small-scale hydro installations. Within the frame of the Feed-In Tariff scheme, many projects remain financially attractive. Biomass heating has multiple advantages: Reliable and dependable Provides high quality heat regardless of weather conditions or local resources Chips or pellets are cheaper than fossil fuels, whether produced on farm or bought in. Grants are available under the SRDP for woodland creation and planting short rotation coppice. New woodland and short rotation coppice can deliver biodiversity benefits provided they are appropriately sited and scaled, and managed according to good practice. Woodfuel offer opportunities for adding value to wood products from farm woodlands. Improved management of the woodland may also result in positive outcomes for biodiversity. Solar Solar energy can be used either in: Photovoltaic (PV) panels: economically viable since the introduction of the FITs regime; generate a modest amount of electricity and pay off within a reasonable timescale but their efficiency is largely dependent on weather conditions. Solar thermal panels: have always been viable and, from 15th July 2009, an installation using MCS-certified panels, installed by an MCS-certified installer will also qualify for the RHI payment (with payment starting after 1st April 2011). Solar thermal panels are excellent for boosting water temperature to reduce the energy input required from other sources but they are often roof-mounted so require scaffolding and some building work to install. The installation of solar technologies may impact on: Bats (by blocking access to a bat roost) Nesting birds Landscape (depending on the size of the device and specific location) These impacts should be assessed by the Local Planning Authority. Heat Pumps Ground-source and air-source heat pumps qualify for payments under the RHI if both installer and product are certified by MCS. A heat pump uses essentially the same process as a fridge, except that heat is pumped from outside to inside, rather than

5 from inside to outside. They are more efficient when the heat gradient they have to pump across is low (i.e. when it aims to heat a space to a modest temperature while the temperature outside is reasonably warm). Thus, heat pumps are most effective: In buildings where there are high levels of insulation that retain heat well With under-floor heating as they benefit from very large area for heat transfer When heating spaces that do not need to be very hot such as swimming pools The main disadvantage of heat pumps cannot be used to heat inner spaces when external temperatures are very low. The efficiency of a heat pump is measured in terms of its Coefficient of Performance (CoP). Very efficient heat pumps may have a CoP of 5, which means that for every kw of electricity put into the system, 5kW of heat are generated. Replacing direct electrical heating by a system of the above efficiency would cut the electricity bill by 80%. Heat exchangers In some specific circumstances, a simple low maintenance heat exchanger may also be a viable option. A heat exchanger is a passive system that may be used in an application such as a dairy parlour, where the farm has a good supply of fresh water from a private supply. Using a heat exchanger can reduce the temperature of the milk significantly, at negligible cost, so that savings on electrically driven refrigeration can be achieved.

6 Further Information Biomass Energy Centre British Hydropower Association Carbon Trust Hosts a windspeed estimator and a wide range of other publications on renewable energy. Community Energy Scotland Provides free advice, grant funding and finance for renewable energy projects developed by community groups to benefit their community Department of Energy and Climate Change Manages the FIT and RHI schemes and has documentation on how they operate Energy Saving Trust Simple, practical advice on energy efficiency and renewable energy generation Forestry Commission Scotland Forestry Commission Scotland have a network of advisers across Scotland providing advice on woodfuel to businesses, communities and individuals; they advise the rural sector on grants available through the SRDP for supply chain development and woodfuel installations. The Wood Energy website provides basic information on woodfuel, from domestic use to developing a largescale energy plant. Heat Pump Association Highland Birchwoods Promotes best practice for sustainable woodland management A renewable Heat Incentive Calculator can be downloaded from Highland Birchwoods website. This calculator enables to calculate the potential income from installing a biomass renewable heat boiler in a building. National Non-Food Crops Centre Information and advice on renewable fuels, materials and technologies NetRegs agriculture/ aspx Guidance on regulations and procedures to follow when developing renewable energy projects Renewable Energy Assurance List Maintains a list of accredited installers Renewable UK Formerly the British Wind Energy Association Scottish Agricultural College farmingforabetterclimate Advice on actions to take on farms to mitigate and adapt to climate change Scottish Environment Protection Agency (SEPA) River flow data Scottish Natural Heritage renewable-energy/ Information for the public and guidance on renewable energy technologies for developers Scottish Renewables The forum for Scotland s renewable energy industry Soil Association Futurefarming/Climatechangeprogramme/tabid/275/ Default.aspx Skills development programme put together by the Soil Association to improve business efficiency and reduce greenhouse gas emissions Use Green Heat Dedicated enquiry point for advice on renewable heat systems for the Highlands, Moray and Argyll. Microgeneration Certification Scheme Lists MCS registered products and installers, which are required for eligibility for FITs and RHI payments