Keys To Development Success - Regensw
Keys To Development Success
REGEN SW, RENEWABLE FUTURES 2012 David Maguire, Director, BNRG Renewables
Keys To Development Success BNRG Renewables Introduction Regulatory Certainty
Site Selection & Project Management Partners and Stakeholders Case Studies in Somerset Current Market Perspective The Future of Solar PV in the UK
Renewable Futures 2012
BNRG: Track Record Solar PV Project Developer focused on commercial scale ground mounted projects. BNRG takes projects from greenfield to operational asset to place with institutional investors. BNRG’s completed projects: Greece: £7m of projects completed & sold; 2009-2011. Bulgaria: £20m of projects completed & sold 2012. UK:
Renewable Futures 2012
£20m completed & sold in 2011/2012.
BNRG: Current Activity BNRG Balkans: now in wind-down BNRG UK: developing large scale solar in the UK under ROCs. BNRG Caribbean: 45 mw projects under development - 3 countries BNRG Atlantic: 15 MW agri-energy project under development BNRG is currently negotiating opportunities in West Africa New regions have in common: High solar resource Little or no subsidy Heavy dependence on expensive diesel-generated electricity Economic development help back by high cost of electricity
Renewable Futures 2012
BNRG: Current Activity
21/11/2012
Regulatory Certainty Lack of regulatory certainty and a clear legislative framework is the single biggest threat to the industry. Funders will not take the risk of investing. Banking and debt providers Private Equity and Institutional Investors The potential contagion to other renewable sectors
Renewable Futures 2012
Site Selection & Project Management Solar projects can have a development (preconstruction) phase in excess of 12 months. The activity that has the most unpredictable timeframe is the grid connection process.
• Site selection • Planning and project management • • • • • • •
Solar resource Access to grid with capacity Land cost and availability Topography, Landscape Visual Impact LPA and Environmental Considerations Public and neighbour considerations Ground Conditions, Agricultural grading
Renewable Futures 2012
Partners and Stakeholders A successful project is dependant on a strong team and engagement with stakeholders at development and construction phases and during the life-time of the project. Partners •
Development and construction teams.
•
Consultants and partners.
•
Technology and supply chain.
Stakeholders •
District Network Operator (DNO).
•
Neighbours, Parish Council, LPA.
•
Statutory Consultees, Env. Groups
•
Local Businesses
Renewable Futures 2012
4MW Development at Puriton
The Fast Track FIT Review nearly killed this project and debt providers pulled out within weeks of construction commencing. Construction equity was raised and the project completed on time.
Renewable Futures 2012
2MW Developed at Bridgewater
The tight timelines were achieved due to the problem solving ability of local engineers and project managers. During construction the most likely area for a project to fail to achieve its completion deadline is the interface between DC and AC elements or the actual grid connection. Renewable Futures 2012
Current Market Perspective There is a fundamental shift of emphasis away from the Climate Change and Green Agenda as fiscal tightening and austerity become priorities for European Governments. There is a misconception that renewable energy is significantly more expensive than fossil fuel. Yet there is little awarness that fossil fuels are materially subsidised. At the current pace of implementation, it is hard to see how the UK will meet its 2020 targets. Over the next decade energy security will become an major issue for the UK. Solar has become low-cost energy source between the tropics. Renewable Futures 2012
The Future for Solar PV in the UK Large Scale PV will become one of the more cost effective renewable energy technologies in parts of the UK. It is about to become considerably cheaper than off-shore wind. Solar PV will become a key technology in helping the UK to reach both its 2020 obligations and providing energy security. Solar energy will continue to be developed and make ever increasing contribution to the energy mix. However, without regulatory stability the equity currently seeking to invest in this sector will evaporate.
Renewable Futures 2012
Further Information BNRG Renewables Ltd. The Exchange Building, IFSC, Mayor Street, Dublin 1, Ireland T: 00353 1791 7882 BNRG Europe Ltd. Festival House, Jessop Avenue, Cheltenham, Glos, GL50 3SH, UK. T: 0044 1242 633 644 E: [email protected] www.bnrg.ie/www.bnrggroup.co m
REGEN SW, RENEWABLE FUTURES 2012 David Maguire, Director, BNRG Renewables
Keys To Development Success BNRG Renewables Introduction Regulatory Certainty
Site Selection & Project Management Partners and Stakeholders Case Studies in Somerset Current Market Perspective The Future of Solar PV in the UK
Renewable Futures 2012
BNRG: Track Record Solar PV Project Developer focused on commercial scale ground mounted projects. BNRG takes projects from greenfield to operational asset to place with institutional investors. BNRG’s completed projects: Greece: £7m of projects completed & sold; 2009-2011. Bulgaria: £20m of projects completed & sold 2012. UK:
Renewable Futures 2012
£20m completed & sold in 2011/2012.
BNRG: Current Activity BNRG Balkans: now in wind-down BNRG UK: developing large scale solar in the UK under ROCs. BNRG Caribbean: 45 mw projects under development - 3 countries BNRG Atlantic: 15 MW agri-energy project under development BNRG is currently negotiating opportunities in West Africa New regions have in common: High solar resource Little or no subsidy Heavy dependence on expensive diesel-generated electricity Economic development help back by high cost of electricity
Renewable Futures 2012
BNRG: Current Activity
21/11/2012
Regulatory Certainty Lack of regulatory certainty and a clear legislative framework is the single biggest threat to the industry. Funders will not take the risk of investing. Banking and debt providers Private Equity and Institutional Investors The potential contagion to other renewable sectors
Renewable Futures 2012
Site Selection & Project Management Solar projects can have a development (preconstruction) phase in excess of 12 months. The activity that has the most unpredictable timeframe is the grid connection process.
• Site selection • Planning and project management • • • • • • •
Solar resource Access to grid with capacity Land cost and availability Topography, Landscape Visual Impact LPA and Environmental Considerations Public and neighbour considerations Ground Conditions, Agricultural grading
Renewable Futures 2012
Partners and Stakeholders A successful project is dependant on a strong team and engagement with stakeholders at development and construction phases and during the life-time of the project. Partners •
Development and construction teams.
•
Consultants and partners.
•
Technology and supply chain.
Stakeholders •
District Network Operator (DNO).
•
Neighbours, Parish Council, LPA.
•
Statutory Consultees, Env. Groups
•
Local Businesses
Renewable Futures 2012
4MW Development at Puriton
The Fast Track FIT Review nearly killed this project and debt providers pulled out within weeks of construction commencing. Construction equity was raised and the project completed on time.
Renewable Futures 2012
2MW Developed at Bridgewater
The tight timelines were achieved due to the problem solving ability of local engineers and project managers. During construction the most likely area for a project to fail to achieve its completion deadline is the interface between DC and AC elements or the actual grid connection. Renewable Futures 2012
Current Market Perspective There is a fundamental shift of emphasis away from the Climate Change and Green Agenda as fiscal tightening and austerity become priorities for European Governments. There is a misconception that renewable energy is significantly more expensive than fossil fuel. Yet there is little awarness that fossil fuels are materially subsidised. At the current pace of implementation, it is hard to see how the UK will meet its 2020 targets. Over the next decade energy security will become an major issue for the UK. Solar has become low-cost energy source between the tropics. Renewable Futures 2012
The Future for Solar PV in the UK Large Scale PV will become one of the more cost effective renewable energy technologies in parts of the UK. It is about to become considerably cheaper than off-shore wind. Solar PV will become a key technology in helping the UK to reach both its 2020 obligations and providing energy security. Solar energy will continue to be developed and make ever increasing contribution to the energy mix. However, without regulatory stability the equity currently seeking to invest in this sector will evaporate.
Renewable Futures 2012
Further Information BNRG Renewables Ltd. The Exchange Building, IFSC, Mayor Street, Dublin 1, Ireland T: 00353 1791 7882 BNRG Europe Ltd. Festival House, Jessop Avenue, Cheltenham, Glos, GL50 3SH, UK. T: 0044 1242 633 644 E: [email protected] www.bnrg.ie/www.bnrggroup.co m
