Mak Đukan UNDP Croatia Environmental Governance Programme Renewable energy cooperatives project Developing renewable energy cooperatives
CONTENTS 1. Renewable energy cooperatives project 2. Methodology for developing a energy cooperative 3. Difficulties we encounter in Croatia
Why do we need energy cooperatives? Society Environment Economy Mickey mouse model of sustainability
Why do we need energy cooperatives? Policymaking Policymaking Top down listen and do Bottom up just do it The people The people
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
Renewable energy cooperatives project Implemen'ng partners Project partners
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
Like us! Facebook: Energetske zadruge
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
How does a biogas plant work? #4 #2 #3 #5 #1 Izvor: GreenTech Opportunities
What does it look like in real life? #5 Sylos for energy crops #2 #4 #3 #1
Why Gundinci?
Gundinci Izvor: Google Maps
ü 2000 inhabitants ü 50% to 70% development compared to Croatian average ü Animal husbandry Photo by Mak Đukan
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""!" #!!!" $!!!" %!!!" &!!!" '!!!!" '#!!!" '$!!!" '%!!!" '&!!!"
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
B Distance of water way is 10 m Environmental effects 1) Local water contamination 2) GHG emissions 3)... Photo by Mak Đukan
1 ton solid cattle manure = 130 kwh ekv. in methane = 90 days of non stop working of 1 light bulb of 60 W
Motivation # 3: Suitable sites for biogas plants
The methodology
#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
Material Flow Analysis
System boundary: what resources are there in Gundinci?
Data collection 43 face to face structured interviews
Coverage rate!"#$%#&'()*+,(( -"./,0 1&2$"%,%(#&(345 678,09',(09),(!"#$%&"'() *+*, -. /012'3)4051) *66 *+ 7-.!"#$%&'()$ *+ **,,.,(&--$%&'()$./0 * 7. 8#9'2:)9#2'(2;<$) = = 766. >?&%5 * 6 6.
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
Photo by Mak Đukan
Photo by Mak Đukan
5 times per year
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?
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%
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
Economics: main findings Above the hurdle rate of 8.6% = projects are acceptable Worst case scenario IRR 11.34%, payback of 10.13 years Best case scenario IRR of 15.17%, payback of 8 years Low sensitivity to changes in energy crop prices
90% of farmers would provide manure, 46% grow energy crops and 70% invest Indikator kooperacije! $""(# &#,"(# +"(# '"(# $'# $"# %"(# *"(# )"(#!"(# &"(#!"# $%# &!# C8# -.# $"(# "(# -./0#10#2345# 672.5./0#10#838928:;<8#10/5<8# =.58>34#10#03?8;@9./0#A#104B/03#
Energy coop example from CRO
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
Sending flyers to locals received 270 back
Obstacles in Croatia
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
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)
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)
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
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?
Thanks! Kontakt Mak Đukan, M.Sc & M.Eng hr.green@undp.org mak.dukan@gmail.com + 385 99 8126 045