Green Breakfast - Renewable EnergyOpportunities
Carter Jonas National firm of property consultants dating back to 1855 30 Offices across England & Wales Multi disciplined...
The Energy Team(Energy & Marine)    West/South West   Eastern/South   Northern                          East
Current projects Clients include: Land and property owners, developers, energy companies, utility companies, investors in ...
UK Renewables - drivers:(not exhaustive) UK signed up to EU Renewable Energy Directive - by 2020 15% of energy from renewa...
Proposed Electricity MarketReform Announced by Government - Dec 2010 “Seismic shift” and proposals include long term contr...
Support Mechanisms at present Renewables Obligation and ROCs Feed-in Tariff (FiT) – up to 5MW RHI – forthcoming July 2011 ...
Background to the RenewablesObligation UK’s support scheme for large renewable electricity projects – runs to 2037 Obligat...
ROC BandingsTechnology Payment examples:- Onshore Wind 1.0 ROC per MWH Offshore Wind 1.5 Hydro-electric 1.0 Solar Photovol...
Feed-in Tariff (FiT) – Micro toMedium Scale Generation  1st April 2010 - AD, Hydro, Micro CHP, Solar PV, Wind  Designed to...
Project exampleswe will look at today:  Wind – Commercial, medium, micro  Solar pv  Anaerobic Digestion Plant  Hydropower
Wind - Commercial Scale                          100m -135m tall to the tip of                          the blades        ...
Wind - Medium Scale 40 – 60m tall 100kW – 500kW Located at farms, schools, companies Developers, local authorities individ...
Micro wind             Gaia 11kW - 18m to hub             Less than 100 kW             Agricultural and business use.     ...
Wind Energy - site selection Wind speed Proximity to Residential properties: noise and shadow flicker Aviation and Radar M...
Constraint MappingNote: Map has Client’s approval forCarter Jonas use in PR
Wind Energy: Feed-in Tariff rates                                 Generati                                             Dur...
Turbine Options – examples ofmicro/medium  Gaia                        11kW            21m     £60k  Endurance            ...
Micro Windexample Gaia 11kW example at 5.5 m/s  Generation  Estimated annual electricity  production (MWh) 29.8716  Wholes...
Medium Wind Enercon E-33 330kWexample at 6.4 m/s Generation Estimated annual electricity production (MWh) 621.522 Wholesal...
Solar Photovoltaics Solar PV uses semi-conductor technology to convert solar irradiation in to DC electrical current Estab...
Feed in Tariff Rates – Solar PVSubject to FAST TRACK REVIEW                                                          Gener...
Solar pv – fast track potentialrates……?  Scale                  Existing FiT (pence/kWh)   Duration                       ...
Rooftop Array requirementsSouth facing roofLoad bearing capacity of around 15kg/sqmPreferably outside of visually sensitiv...
Solar pv rooftop array returnsExample 8kW Array on 72 sq m usable roof    Generation    Estimated annual electricity    pr...
Ground Mounted Arrays – troubledtimes! Solar parks or farms Commercial scale >500kW 3ha – 15ha of land take Flat or south ...
Ground Mounted ArrayExample of projected returns 5MW Scheme(12ha)  Generation  Estimated annual electricity  production (k...
Anaerobic Digestion – how does ADwork?                             Courtesy of Biogas Nord UK
AD key requirements and output Regular and reliable source of substrate Sufficient land to receive digestate Access to a g...
Hydropower 96 kW example A “low head” scheme located in North Wales The proposed scheme is to be located at the upper of m...
HydropowerExample of projected returns from 96kWexample  Generation  Estimated annual electricity  production (kWh) 292,23...
FiT review Confirmed at the Spending Review, the FiT review will determine how the efficiency of FITs will be improved to ...
Forthcoming Renewable HeatIncentive (RHI) Final details of the RHI announced in March by DECC Commence July 2011 Support f...
How Carter Jonas can assist Initial site assessments/screening (WindPro, HyrdaA, GIS) Feasibility studies Financial Modell...
Thank you for your timeAny questions?If you would like to receive any of our corporateliterature, including Services Broch...
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Carter Jonas presentation for Blake Lapthorn green breakfast on 4 May 2011

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Blake Lapthorn were pleased to welcome Andrew Watkin, Partner and Head of Energy and Marine team at Carter Jonas, as speaker at its green breakfast held on 4 May in Oxford.

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Carter Jonas presentation for Blake Lapthorn green breakfast on 4 May 2011

  1. 1. Green Breakfast - Renewable EnergyOpportunities
  2. 2. Carter Jonas National firm of property consultants dating back to 1855 30 Offices across England & Wales Multi disciplined firm: Residential Rural Land & Business Commercial Planning & Development Architecture & Building Consultancy Specialist Teams: Energy & Marine GIS CAD & Mapping Minerals and Waste Infrastructures
  3. 3. The Energy Team(Energy & Marine) West/South West Eastern/South Northern East
  4. 4. Current projects Clients include: Land and property owners, developers, energy companies, utility companies, investors in the sector, businesses with high energy Wind Farm demands Wind medium Wind small Hydro Proven track record: 200+ Solar - roof mounted Solar - ground mounted ongoing projects AD Biomass Strong market knowledge and experience of renewable energy sector, including manufacturers & their products
  5. 5. UK Renewables - drivers:(not exhaustive) UK signed up to EU Renewable Energy Directive - by 2020 15% of energy from renewables - Aim to tackle climate change in UK and reduce our CO2 emissions between ’09 and 2030 by 750M tonnes - Reduce fossil fuel demands by circa 10% and gas imports by 20-30% versus likely use by 2020 - Create employment Carbon Reduction Commitment – CRC (users of 6000mWh/annum - £500K+) Middle East – supply of fossil fuels…reliability?? Oil price (Brent Crude) $125/barrel UK Nuclear development – effects of Fukushima
  6. 6. Proposed Electricity MarketReform Announced by Government - Dec 2010 “Seismic shift” and proposals include long term contracts and a carbon price floor Aims include electricity market shake up to ensure £100++bn of infrastructure investment by 2020 Proposals include Feed-in Tariff scheme using contracts for difference (CfD) to create a stable revenue stream for low carbon generators Intention to set an emissions performance standard – ruling out gas power stations not fitted with CCS tech Carbon floor price plans – Treasury – 3 scenarios up to either £20/30/40 per Tonne by 2020. Plans were out to consultation to March 2011, possible legislation by year end?
  7. 7. Support Mechanisms at present Renewables Obligation and ROCs Feed-in Tariff (FiT) – up to 5MW RHI – forthcoming July 2011 on a phased basis
  8. 8. Background to the RenewablesObligation UK’s support scheme for large renewable electricity projects – runs to 2037 Obligation on UK electricity suppliers to source a proportion of their electricity from renewables ROC – the “green certificate” 27 April 2011: average single ROC trading at £50.54 In England and Wales renewable projects receive varying ROC support levels
  9. 9. ROC BandingsTechnology Payment examples:- Onshore Wind 1.0 ROC per MWH Offshore Wind 1.5 Hydro-electric 1.0 Solar Photovoltaic 2.0 Wave/Tidal Steam 2.0 Anaerobic Digestion/Energy Crops 2.0 Biomass with CHP 2.0 (1.5 without CHP)
  10. 10. Feed-in Tariff (FiT) – Micro toMedium Scale Generation 1st April 2010 - AD, Hydro, Micro CHP, Solar PV, Wind Designed to encourage the adoption of renewable energy sources For projects sub 5 megawatts (MW) in generating capacity FiT means smaller scale schemes are also viable despite higher capital costs per MW installed Has led to more property owners developing their own projects Guarantees a fixed payment per kilowatt hour (kWh) generated for 20 years, apart from solar pv which is 25 years, export tariff too.
  11. 11. Project exampleswe will look at today: Wind – Commercial, medium, micro Solar pv Anaerobic Digestion Plant Hydropower
  12. 12. Wind - Commercial Scale 100m -135m tall to the tip of the blades 2-3MW per turbine Wind farms and merchant sites Developers and large companies ROC’s
  13. 13. Wind - Medium Scale 40 – 60m tall 100kW – 500kW Located at farms, schools, companies Developers, local authorities individuals Suitable for the Feed-in Tariff
  14. 14. Micro wind Gaia 11kW - 18m to hub Less than 100 kW Agricultural and business use. Suitable for individuals and small companies Qualify for Feed in Tariff Fewer planning restrictions than larger turbines
  15. 15. Wind Energy - site selection Wind speed Proximity to Residential properties: noise and shadow flicker Aviation and Radar Microwave links from telecom sites Landscape designations Historical features Grid capacity and length of connection Access costs
  16. 16. Constraint MappingNote: Map has Client’s approval forCarter Jonas use in PR
  17. 17. Wind Energy: Feed-in Tariff rates Generati Duration on TariffEnergy Source Scale (p/kWh)[ A] (years)Wind ≤1.5kW 34.5 20Wind >1.5 - 15kW 26.7 20Wind >15 - 100kW 24.1 20Wind >100 - 500kW 18.8 20 >500kW -Wind 1.5MW 9.4 20Wind >1.5MW - 5MW 4.5 20
  18. 18. Turbine Options – examples ofmicro/medium Gaia 11kW 21m £60k Endurance 50kW WES 18 80kW Northwind 100 100kW WES 30 250kW Vergnet 275 275kW Enercon E-33 330kW 67m £760k Note: E-33 is IEC 61400-1 Certified (European engineering standard)
  19. 19. Micro Windexample Gaia 11kW example at 5.5 m/s Generation Estimated annual electricity production (MWh) 29.8716 Wholesale electricity price (MWh) £30.00 Feed in Tariff £267.00 LEC Price £4.70 Estimated present annual revenue £9,012 Estimated present operating margin Estimated Construction Costs £8,564 Grid Connection £2,200 Turbine cost £50,000 Estimated Pre Construction Costs Infrastructure £3,800 Planning £3,000 Total £56,000 Technical design (inc Met Mast) £1,000 Return Appeal (if required) £0 Straight Return 14.3% Ecological Assessments £0 Grid Studies £0 Total £4,000
  20. 20. Medium Wind Enercon E-33 330kWexample at 6.4 m/s Generation Estimated annual electricity production (MWh) 621.522 Wholesale electricity price (MWh) £30.00 Feed in Tariff £188.00 LEC Price £4.70 Estimated present annual revenue £138,413 Estimated present operating margin Estimated Construction Costs £133,752 Grid Connection £90,000 Turbine cost £500,000 Estimated Pre Construction Costs Infrastructure Planning £20,000 incl foundations £102,500 Technical design (inc Met Mast) Total £692,500 £25,000 Appeal (if required) £0 Return Ecological Assessments £15,000 Straight Return 17.6% Grid Studies £7,500 Total £67,500
  21. 21. Solar Photovoltaics Solar PV uses semi-conductor technology to convert solar irradiation in to DC electrical current Established technology but expensive when compared to conventional sources Feed-in Tariff support has led to a viable investment option sub 50kW
  22. 22. Feed in Tariff Rates – Solar PVSubject to FAST TRACK REVIEW Generation Duration TariffEnergy Source Scale (p/kWh)[A] (years)Solar PV ≤4 kW New 36.1 25Solar PV ≤4 kW Retrofit 41.3 25Solar PV >4 - 10kW 36.1 25Solar PV >100 - 500kW 29.3 25 >100kW -Solar PV 5MW 29.3 25Solar PV Standalone 29.3 25* 9% annual digression of all rates for installations commissioned after March 31st 2012
  23. 23. Solar pv – fast track potentialrates……? Scale Existing FiT (pence/kWh) Duration (years) Solar PV>10 - 100kW 31.4 25 Solar PV>100kW - 5MW 29.3 25 Solar PV Stand-alone 29.3 25 Scale Possible FiT (pence/kWh) Duration (years) Solar PV>50kW - ≤150kW 19 25 Solar PV>150kW - ≤250kW 15 25 Solar PV>250kW - ≤5MW 8.5 25Solar pv Developers v DECC – Litigation….
  24. 24. Rooftop Array requirementsSouth facing roofLoad bearing capacity of around 15kg/sqmPreferably outside of visually sensitive locationssuch as conservation areasTiled/composite sheet roofs are easier to fixpanels to though it is possible on fibre cementAdequate on site transformer capacity – ideally50 kVa or largerAway from potential shading obstacles such astrees (3.5 times height)Planning permission will usually be required Approximately 7.5 sq m of usable roof space required per kWpSummer on site electricity demand ideal
  25. 25. Solar pv rooftop array returnsExample 8kW Array on 72 sq m usable roof Generation Estimated annual electricity production (kWh) 7,120 Electricity price saving (kWh) £0.10 Feed in Tariff £0.361 Estimated present annual revenue £3,282 Estimated present operating margin £3,182 Estimated Construction Costs Estimated Pre Construction Costs Grid Connection £0 Planning £500 Array components £28,000 Technical design £1,000 Infrastructure £0 Appeal (if required) £0 Total £28,000 Ecological Assessments £0 Grid Studies £0 Return Total £1,500 Straight Return 10.8%* This model assumes all of the electricity is used on site, south facing, 20 degree pitch
  26. 26. Ground Mounted Arrays – troubledtimes! Solar parks or farms Commercial scale >500kW 3ha – 15ha of land take Flat or south facing and well screened 11kv line or 33kv substation required Most developers seeking 3MW+ near 33kv infrastructure Option and lease market on hold Rents £1000 - £2000 per acre RPI linked for 25 year term
  27. 27. Ground Mounted ArrayExample of projected returns 5MW Scheme(12ha) Generation Estimated annual electricity production (kWh) 4,860,000 Wholesale Export price (kWh) £0.03 Feed in Tariff £0.293 (pre review rate) LEC Price £0.00496 Estimated present annual revenue £1,591,542 Estimated present operating margin Estimated Construction Costs £1,422,347 Grid Connection £600,000 Array components £10,214,571 Estimated Pre Construction Costs Infrastructure £805,000 Planning £40,000 Total £11,619,571 Technical design £15,000 Appeal (if required) £0 Return Ecological Assessments £10,000 Straight Return 12.2% (pre review Grid Studies £10,000 rate) Total £75,000
  28. 28. Anaerobic Digestion – how does ADwork? Courtesy of Biogas Nord UK
  29. 29. AD key requirements and output Regular and reliable source of substrate Sufficient land to receive digestate Access to a good road network Accessible electrical grid connection Upwards of 10% return on successful plants Electricity sales ROC OR FiT support Gate fees Nitrogen benefits
  30. 30. Hydropower 96 kW example A “low head” scheme located in North Wales The proposed scheme is to be located at the upper of multiple weirs with a 2.5m head feeding two Archimedes screw turbines side by side Recommendation from the Environment Agency secured for 70% of the water above hands off flow for winter months and 50% for the summer months The full load output of the turbine will be 96kW
  31. 31. HydropowerExample of projected returns from 96kWexample Generation Estimated annual electricity production (kWh) 292,231 Wholesale Export price (kWh) £0.03 Feed in Tariff £0.178 Estimated annual revenue £60,784 Estimated present operating margin £52,784 Estimated Pre Construction Costs Estimated Construction Costs Planning & licensing £10,000 Grid Connection £92,700 Technical design £5,000 Mechanical Hydro £90,710 Appeal (if required) £0 Civil Hydro £122,490 Ecological Assessments £5,000 Total £305,900 Grid Studies £2,000 Total £22,000 Return Straight Return 16.1%
  32. 32. FiT review Confirmed at the Spending Review, the FiT review will determine how the efficiency of FITs will be improved to deliver £40 million of savings, around 10%, in 2014/15 The review is in 2 phases: April 2012 - comprehensive and as set out when the FIT scheme started, will consider all aspects of the scheme Current fast track review - large scale solar pv and AD this has a 6 May deadline for consultation with 1 August 2011 implementation
  33. 33. Forthcoming Renewable HeatIncentive (RHI) Final details of the RHI announced in March by DECC Commence July 2011 Support for a range of technologies and fuel uses including solid and gaseous biomass, solar thermal, ground and water source heat-pumps, on- site biogas, deep geothermal, energy from waste and injection of biomethane into the grid RHI will have scheduled 4 yearly reviews starting in 2014 and being implemented in 2015!? Phased implementation Phase 1 - targeting large emitters in the non domestic sector which will include the industrial and commercial sectors, not for profit organisations and communities As part of the first phase the Government will also introduce the Renewable Heat Premium Payments (RHPP) in July 2011 for the domestic sector, having ring fenced £15M which they will use to make premium payments to households who install renewable heating Phase 2 of the RHI will include long-term support for the domestic sector which will be introduced in 2012
  34. 34. How Carter Jonas can assist Initial site assessments/screening (WindPro, HyrdaA, GIS) Feasibility studies Financial Modelling Advice on equipment and procurement Initial grid investigations and negotiations, aviation consultation Planning Procurement Valuation/due diligence/brokerage
  35. 35. Thank you for your timeAny questions?If you would like to receive any of our corporateliterature, including Services Brochure, Energy Index,Newsletters and e-briefings please contact:alice.jordan@carterjonas.co.uk

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