Renewable Energy & Low Carbon Opportunities

Renewable Energy & Low Carbon Opportunities

Ross Jones

CARES Development Officer Local Energy Scotland

Mel MacRae

Senior Development Manager, Community Energy HIE

1. Community Energy

- Vision for the future and challenges 2. Case Studies & Practical Support

3. Discussion groups

Renewable Energy & Low Carbon Opportunities

15 mins

15 mins

“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

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

Progress to 2020 target

 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

Set out expectations and supportive guidance for both communities and developers:

Scottish Government Good Practice Guides

 Community Benefits from Onshore

Renewable Energy Developments

 Shared Ownership of Onshore

 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)

 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

Creating Local Energy Economies

Image:

CES/HIE Local Energy Economies Programme

 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

Applicant

 Consortium of private sector renewable

developer, community development trust and third sector housing association

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

Applicant

 Led by community trust in partnership with

charitable body, public asset land owner

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

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

Key in your text here please

C

a

ta

ly

s

t

Initial strategy development and feasibility work

D

e

v

e

lo

p

m

e

n

t

Final business case, investment options and investment propositions

Key in your text here please

D

e

m

o

n

s

ta

to

r

Where a technology is not proven in Scotland capital support may be available to demonstrate its commercial viability

 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

Shared ownership

 Communities and social enterprises taking a

share of revenues from commercial developments

 Register an interest with HIE

Community energy accelerator

 Intensive programme of support through

coaching, mentoring and specialist advice

 Pilot of 10-12 groups

 Register an interest with HIE

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

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?

Project Experience

Organisation Project type

Barra & Vatersay Wind

Coigach Wind/Hydro generation

Durness

Eday Wind /Storage

Fair Isle Local Energy System

Fetlar Local Energy System

Kinlochbervie

Knoydart Hydro

Kyle & Lochalsh Lochcarron

Melness & Tongue Wind

Morvern Shared Ownership

Muaitheabahail (Lewis) Papay

Rasaay Hydro

Rum Local Energy System

Sanday Wind

Scourie

SW Mull & Iona Tiree

Ullapool Community Trust Hydro generation

Ulva Ferry