Opportunities in local energy economies - Regensw
Opportunities in local energy economies Communities for Renewables CIC June 2012
Overview
1. 2. 3. 4.
About Communities for Renewables CIC Local energy economy eg – WREN Illustrative CfR project Opportunities
What is possible - Morbach energy park, Germany; powering a community energy powered town. CfR’s objective is to develop a UK model for renewable energy powered communities that is scalable, replicable and commercially fundable.
2
About Communities for Renewables CIC CfR is a social enterprise (a Community Interest Company – CIC) What we do • Work in partnership with local energy initiatives • Help develop and implement local energy economies • Fund and manage large-scale community energy projects under a social enterprise business model • CfR development fund (£300k seed loan from Esmee Fairbairn Foundation) • Project specific sources (e.g. DECC Rural Community Energy Fund) Delivery model for large-scale projects • Initial focus is wind (500kW – 20MW) • Must form part of a wider local energy initiative • Only progress where broad local support • Community fund of £20,000+/MW installed capacity/year • A local investment offer • Local energy supply • Competitive land lease income • CfR profit from each project re-invested in further community energy projects
3
Local energy economy e.g. - WREN About Wadebridge •Typical market town •8,300 people, and 3,750 households •Fuel poverty rates of 14% to 30% •Electricity and heat costs economy £8 million per year What is WREN? •Not-for-profit community energy co-operative (IPS bencom) •600 members (7% of population) •Support of town’s institutions and Cornwall Council 5-year objectives •>30% of Wadebridge’s energy from local renewables; •Reduce consumption by at least 5%; •>£200,000/year for WREN community fund that has the potential to grow to £7m by 2020; •Attract substantial capital investment to the Wadebridge area and maximise the percentage spent locally; •Engage the whole community; •Develop the initiative in a way that is replicable by other communities. 4
The voting box for the first round of the WREN community fund is unlocked by the key holder – a local community police officer
Technology mix Technology
Capacity target (MW installed)
Generation (MWh/yr)
% of WREN area consumption*
Roof-top PV
500kW (200kW installed)
525
1%
St Breock repower (REG partnership)
10MW
27,000
47%
New community wind project (CfR partnership)
6MW
16,200
28%
Farm-scale wind
500kW
1,800
3%
Solar allotment
5MW
5,250
9%
Farm-scale PV
250kW (built)
263
0.4%
Small-scale marine
TBC
A.D.
TBC 51,000
90%
Total electricity Commercial and community building RHI identified
1.7
*57,000 MWh/year DECC figure for Wadebridge and surrounding area
WREN income generation targets Source
Projects / technologies1
5-year cumulative income target
Technology buying clubs
PV, Voltage opt, commercial and [domestic biomass]
£32,0002
Local energy supply arrangement
WREN green elec supply offer, [wood fuel buying clubs]
£100,0003
WREN Energy Co
Commercial RHI, investment in large-scale wind JVs, MW-solar allotment, [A.D.], [small-scale marine], [Green Deal fund]
£264,0004
Contributions from partner projects
CfR wind, St Breock repower, Olde House solar
£615,0005
Low energy product promotion
Lighting, eco-kettle, local food products
£35,6006
Other Total
Up to £1,000,000
CfR wind project e.g. – 6MW Wadebridge community wind project
Scale •2 – 3 large turbines (6MW total) •16,200 MWh per year (c.3,000 homes / 30% of town’s domestic and commercial consumption) Local benefits •>£120k per year income for WREN co-operative •c.£10m investment opportunity for local people, businesses and public sector •Up to £100k per year local energy costs saving •c.£60k per year business rates to be retained locally
Tiree community wind turbine. CfR has been set up to make such projects mainstream
7
Opportunities in local energy economies and CfR’s role Communities • Take control of local energy economy • CfR is looking for 4 – 5 more local energy initiatives to work with over next 3 months Local authorities • Provide seed funding to local energy co-operatives • Invest capital in projects which generate a good return for the council, and substantial local economic benefits • Host projects on council estate and generate lease revenue • CfR can support with local strategy development and appraisal/development of council sites Investors • Cross-technology portfolios producing a fair return • Local support can decrease risk of large-scale projects and increase uptake of small-scale technologies • CfR will be raising further development funds this year through EIS share offer Industry • Local energy initiatives could unlock the region’s MW potential • CfR will shortly be procuring legal and technical advisors 8
Contact
Communities for Renewables CIC The Innovation Centre Rennes Drive Exeter Devon, EX4 4RN w. www.communities4renewables.co.uk Jake Burnyeat (Director) t. 07815 014 540 e. [email protected]
9
Overview
1. 2. 3. 4.
About Communities for Renewables CIC Local energy economy eg – WREN Illustrative CfR project Opportunities
What is possible - Morbach energy park, Germany; powering a community energy powered town. CfR’s objective is to develop a UK model for renewable energy powered communities that is scalable, replicable and commercially fundable.
2
About Communities for Renewables CIC CfR is a social enterprise (a Community Interest Company – CIC) What we do • Work in partnership with local energy initiatives • Help develop and implement local energy economies • Fund and manage large-scale community energy projects under a social enterprise business model • CfR development fund (£300k seed loan from Esmee Fairbairn Foundation) • Project specific sources (e.g. DECC Rural Community Energy Fund) Delivery model for large-scale projects • Initial focus is wind (500kW – 20MW) • Must form part of a wider local energy initiative • Only progress where broad local support • Community fund of £20,000+/MW installed capacity/year • A local investment offer • Local energy supply • Competitive land lease income • CfR profit from each project re-invested in further community energy projects
3
Local energy economy e.g. - WREN About Wadebridge •Typical market town •8,300 people, and 3,750 households •Fuel poverty rates of 14% to 30% •Electricity and heat costs economy £8 million per year What is WREN? •Not-for-profit community energy co-operative (IPS bencom) •600 members (7% of population) •Support of town’s institutions and Cornwall Council 5-year objectives •>30% of Wadebridge’s energy from local renewables; •Reduce consumption by at least 5%; •>£200,000/year for WREN community fund that has the potential to grow to £7m by 2020; •Attract substantial capital investment to the Wadebridge area and maximise the percentage spent locally; •Engage the whole community; •Develop the initiative in a way that is replicable by other communities. 4
The voting box for the first round of the WREN community fund is unlocked by the key holder – a local community police officer
Technology mix Technology
Capacity target (MW installed)
Generation (MWh/yr)
% of WREN area consumption*
Roof-top PV
500kW (200kW installed)
525
1%
St Breock repower (REG partnership)
10MW
27,000
47%
New community wind project (CfR partnership)
6MW
16,200
28%
Farm-scale wind
500kW
1,800
3%
Solar allotment
5MW
5,250
9%
Farm-scale PV
250kW (built)
263
0.4%
Small-scale marine
TBC
A.D.
TBC 51,000
90%
Total electricity Commercial and community building RHI identified
1.7
*57,000 MWh/year DECC figure for Wadebridge and surrounding area
WREN income generation targets Source
Projects / technologies1
5-year cumulative income target
Technology buying clubs
PV, Voltage opt, commercial and [domestic biomass]
£32,0002
Local energy supply arrangement
WREN green elec supply offer, [wood fuel buying clubs]
£100,0003
WREN Energy Co
Commercial RHI, investment in large-scale wind JVs, MW-solar allotment, [A.D.], [small-scale marine], [Green Deal fund]
£264,0004
Contributions from partner projects
CfR wind, St Breock repower, Olde House solar
£615,0005
Low energy product promotion
Lighting, eco-kettle, local food products
£35,6006
Other Total
Up to £1,000,000
CfR wind project e.g. – 6MW Wadebridge community wind project
Scale •2 – 3 large turbines (6MW total) •16,200 MWh per year (c.3,000 homes / 30% of town’s domestic and commercial consumption) Local benefits •>£120k per year income for WREN co-operative •c.£10m investment opportunity for local people, businesses and public sector •Up to £100k per year local energy costs saving •c.£60k per year business rates to be retained locally
Tiree community wind turbine. CfR has been set up to make such projects mainstream
7
Opportunities in local energy economies and CfR’s role Communities • Take control of local energy economy • CfR is looking for 4 – 5 more local energy initiatives to work with over next 3 months Local authorities • Provide seed funding to local energy co-operatives • Invest capital in projects which generate a good return for the council, and substantial local economic benefits • Host projects on council estate and generate lease revenue • CfR can support with local strategy development and appraisal/development of council sites Investors • Cross-technology portfolios producing a fair return • Local support can decrease risk of large-scale projects and increase uptake of small-scale technologies • CfR will be raising further development funds this year through EIS share offer Industry • Local energy initiatives could unlock the region’s MW potential • CfR will shortly be procuring legal and technical advisors 8
Contact
Communities for Renewables CIC The Innovation Centre Rennes Drive Exeter Devon, EX4 4RN w. www.communities4renewables.co.uk Jake Burnyeat (Director) t. 07815 014 540 e. [email protected]
9
