Strategies for promoting
RES in Islands
El Hierro 100 % RES
Island

Salvador suárez
Canary Islands Institute of Technology
• Energy framework of the Canary Islands

• El Hierro wind-pumped-hydro system

• ISLE-PACT Initiative
CANARY ISLANDS
They share many characteristics with other
European island regions
• Fragile ecosystems
with many species
a...
Energy Balance Canary Islands 2011
Sea and air
transport

4.022.634 Tep
7.337.665 Tep

CONVERSION FACTORS
Crude oil
1,0 Te...
Installed Electric Power and Energy Produced
TOTAL
Power (MW)

3,177.3
9,368

Energy (GWh)

LANZAROTE
Power (MW)
Energy (G...
Renewable Energy Potential

Solar Energy
Hours > 2,500 – 3,000 h/año
Radiation 5 - 6 kWh/m2 day

Wind Energy
Mean Wind Spe...
PECAN (Energy Plan for Canary Islands) 2006: RES objectives 2015

Type

2006

PECAN (2015)

Wind

137 MW

1.025 MW

Hydro
...
MAXIMIZING PENETRATION OF RENEWABLE ENERGIES (RES)

Barriers to wind energy penetration in the Canary Islands
Electric Sys...
EUROPEAN ISLANDS ELECTRICAL GRIDS
The small and weak island grids limit the penetration of variable and
intermittent RES.
...
DERLAB: Distributed Generation Laboratory

R+D+i lines
• Assessment of new approaches for electric network control
• Load ...
ENERGY RESOURCE ASSESMENT AND FORECASTING

MEASUREMENT STATIONS NETWORK
• 23 RADIOMETRIC STATIONS: Estimation of photovolt...
DEMAND MANAGEMENT: Energy and water
20% of energy production goes to water desalination
and water distribution.

Use of de...
DEMAND MANAGEMENT: Electric cars
30% of oil consumed in the internal
market goes to the road transport
sector.

Peak shavi...
ENERGY STORAGE
HYDROGEN: TRANSPORT FUEL
H2O

4,5 kWh/m³

0,5 kWh/m³
H2

20 bar

350 bar

H2 vector
energético
HYDROGENE
1 atm

0 ºC
89.9 g de H
2

= 3 kWh
Therma l energy

350 bar

89.9 g de H2
2.9 litros

1.5 kWh

Electricity

1.5 ...
HYDROGEN: Most relevant RES – H2 projects
RES2H2

HYDROBUS

H2 energy vector
Practical experiences allowing ITC to
progres...
Maximizing RES Penetration in Insular Grids: other projects
Several Storage Projects ongoing, promoted by the utility (END...
Case Study: El Hierro Island
Current Situation

Electricity consumption 44.87 GWh

9 Diesel installed in Llanos Blancos
Po...
WIND – HYDRO Power station (only wind operation)

EL HIERRO WIND HYDRO POWER STATION
EL HIERRO WIND-PUMPED-HYDRO SYSTEM
Area

278 km2

Height

1.501 m.

Population
Electricity Plant (Diesel)
nominal power

1...
Upper reservoir

Penstock

Lower reservoir
Wind Farm
Pumps and hydro power station
Pumps and hydro power station
Wind-Hydro Power Station

The systems avoids:

VOC

SO2
47 Tm

742 Tm
CO2
130118 Tm

Fuel-Oil
41,257 Tm

NOx
2,697 Tm

The...
Wind – Pumped Hydro Power Station

A bankable project
POSITIVE EXTERNALITIES
• Emission reductions
• Local job creation
• ...
ISLE-PACT

INSTITUTO TECNOLÓGICO
DE CANARIAS
ISLE-PACT Goals
• Achieve an overall objective of more than
20% CO2 emissions reduction by 2020.
• Demonstrate islands’ po...
ISLE-PACT
•

62 Island authorities have signed the Pact of Islands
• All 7 Island Authorities of the Canary Islands
• The ...
Needed EC support for overcoming existing barriers to
maximum penetration of RES in European Islands
Existing barriers to ...
BANKABLE PROJECTS
Identify and analyse potential Renewable Energies, Energy Efficiency and
Sustainable Transport feasible ...
ALL PARTNERS – Identification of projects

* Olands
** Saaremaa
*** Hiumaa

Number of
analysed
projects
3
3
2
7
11
7
6
6
3...
Take a week to change tomorrow

BANKABILITY INDEX
This index is an indicator that expresses the percentage
of public suppo...
Take week to change tomorrow
RESULTS OF aBANKABILITY ANALYSIS

BANKABILITY
25%

20%

Projects

BANKABILITY
No. of
INDEX
PR...
Minigrid for La Graciosa
658 permanent residents
342 houses

Objectives

Minimizing the needs for fossil fuels to satisfy ...
Take a week to change tomorrow

EUROPEAN
COMMISSION
Take week Graciosa
Minigrid fora La to change tomorrow

The microgrid will combine photovoltaic,
wind and diesel systems t...
Take a week to change tomorrow

Punta Jandía Wind Diesel System, Fuerteventura Island
Bankability Analysis on the overhaul...
CONCLUSIONS
Most RES projects involve technologies that lack the competitive
maturity of most fossil fuel based technologi...
Thank you for your
attention
El Hierro 100 % res island (EN)
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El Hierro 100 % res island (EN)

  1. 1. Strategies for promoting RES in Islands El Hierro 100 % RES Island Salvador suárez Canary Islands Institute of Technology
  2. 2. • Energy framework of the Canary Islands • El Hierro wind-pumped-hydro system • ISLE-PACT Initiative
  3. 3. CANARY ISLANDS They share many characteristics with other European island regions • Fragile ecosystems with many species and a big share of its territory protected • Economy heavily dependent on tourism (12.000.00 tourist a year contribute to 80 % of its GDP) • Total energy dependence of imported energy (96 % of energy from oil) • High rise of the electric demand • Abundant RES potential (3,000 - 4,500 eq. hrs., and 3,000 Sun hors) Political commitment to sustainable development • Independent, small and weak electrical systems
  4. 4. Energy Balance Canary Islands 2011 Sea and air transport 4.022.634 Tep 7.337.665 Tep CONVERSION FACTORS Crude oil 1,0 Tep/Tm Gas 1,1 Tep/Tm Querosene 1,1 Tep/Tm Diesel oil 1,0 Tep/Tm Fuel oil 1,0 Tep/Tm 1.024.466 Tep Electric power generation 2.097.200 Tep 19.919 Tep Heat 1.341.974 Tep Electricity 805.657 Tep 30.512 Tep CONVERSION FACTORS Electric energy 0,086 Tep/MWh Wind 0,086 Tep/MWh Photovotaic 0,086 Tep/MWh Losses Trans+Distr. 54.661 Tep 171,318 Tep 112,879 Tep 295.927 Tep Municipal. Island Auth.151,777 Tep Region.Gov. 30.797 Tep
  5. 5. Installed Electric Power and Energy Produced TOTAL Power (MW) 3,177.3 9,368 Energy (GWh) LANZAROTE Power (MW) Energy (GWh) 229.1 874.7 TENERIFE LA PALMA Power (MW) Energy (GWh) 116.4 273.52 LA GOMERA Power (MW) Energy (GWh) Power (MW) Energy (GWh) 1,333 3,715 GRAN CANARIA Power (MW) Energy (GWh) 23.2 74.06 1,251.7 3,707 FUERTEVENTURA Power (MW) Energy (GWh) EL HIERRO Power (MW) Energy (GWh) 13.1 44.87 210.8 677.97
  6. 6. Renewable Energy Potential Solar Energy Hours > 2,500 – 3,000 h/año Radiation 5 - 6 kWh/m2 day Wind Energy Mean Wind Speed 6 to 8 m/s Yield of wind farms: 3,000 – 4,500 eqiv. hours
  7. 7. PECAN (Energy Plan for Canary Islands) 2006: RES objectives 2015 Type 2006 PECAN (2015) Wind 137 MW 1.025 MW Hydro 1,3 MW 13,6 MW* Solar Photovoltaic 0,6 MW 160 MW 80.000 m2 460.000 m2 Solar Thermal Solar Thermoelectric 30 MW Biofuels 30 MW Waves 50 MW
  8. 8. MAXIMIZING PENETRATION OF RENEWABLE ENERGIES (RES) Barriers to wind energy penetration in the Canary Islands Electric System Land Planning Economic-Administrative issues Estrategy for maximizing RES penetration in the Canary Islands in the power grids Grid stability studies Energy storage Forecasting of wind and solar resources Demand Management
  9. 9. EUROPEAN ISLANDS ELECTRICAL GRIDS The small and weak island grids limit the penetration of variable and intermittent RES. Most islands have achieve their maximum level of RES penetration that their electrical systems can support without risking grid stability, which makes it difficult for private investors to installed new wind and solar systems. New infrastructure for massive energy storage and R&D in new energy vectors is needed to guarantee that new RES systems do not affect the stability of the islands electrical systems, and European financial support is a key issue.
  10. 10. DERLAB: Distributed Generation Laboratory R+D+i lines • Assessment of new approaches for electric network control • Load and Storage Management • Communication protocol interfaces aimed to improve management and control strategies (ITC’s) • Microgrid testing • GD Interconnection elements testing • Strategies for the integration of distributed generation sources (solar, wind …) in the insular electric networks
  11. 11. ENERGY RESOURCE ASSESMENT AND FORECASTING MEASUREMENT STATIONS NETWORK • 23 RADIOMETRIC STATIONS: Estimation of photovoltaic plant production • 33 WIND STATIONS: Wind potential studies, which are needed for feasibility analysis of wind farms at particular locations WEATHER FORECAST SERVICE: to estimate the energy to be injected in the grid by photovoltaic and wind generators within a 6-96 hours time horizon (MM5, WRF).
  12. 12. DEMAND MANAGEMENT: Energy and water 20% of energy production goes to water desalination and water distribution. Use of desalinated water Residential & touristic 374,000 m³/day 153 plants Agriculture 146,000 m³/day 100 plants Energy consumption for water desalination: 1Kg fuel/ m³ of desalinated water. - For 522,000 m³/day - Import 150,000 Ton fuel /year.
  13. 13. DEMAND MANAGEMENT: Electric cars 30% of oil consumed in the internal market goes to the road transport sector. Peak shaving: More than 1 million vehicles could charge at valley hours of the electric demand curve
  14. 14. ENERGY STORAGE
  15. 15. HYDROGEN: TRANSPORT FUEL H2O 4,5 kWh/m³ 0,5 kWh/m³ H2 20 bar 350 bar H2 vector energético
  16. 16. HYDROGENE 1 atm 0 ºC 89.9 g de H 2 = 3 kWh Therma l energy 350 bar 89.9 g de H2 2.9 litros 1.5 kWh Electricity 1.5 kWh Heat Fuel cells η = 50 % 16
  17. 17. HYDROGEN: Most relevant RES – H2 projects RES2H2 HYDROBUS H2 energy vector Practical experiences allowing ITC to progress on the H2 technologies learning curve HYDROHYBRID H2 automotive fuel With 1.025 MW of wind-power (PECAN: target 2015), and by using energy surpluses from valley time, H2 could be produced to feed 600 urban buses.
  18. 18. Maximizing RES Penetration in Insular Grids: other projects Several Storage Projects ongoing, promoted by the utility (ENDESA) and the TSO (Red Eléctrica de España): NaS, ZnBr, Supercaps, Flywheels Pumped Storage (Peak Shaving) 4 Plants planned: Gran Canaria, Tenerife, La Palma, La Gomera
  19. 19. Case Study: El Hierro Island Current Situation Electricity consumption 44.87 GWh 9 Diesel installed in Llanos Blancos Power Station.
  20. 20. WIND – HYDRO Power station (only wind operation) EL HIERRO WIND HYDRO POWER STATION
  21. 21. EL HIERRO WIND-PUMPED-HYDRO SYSTEM Area 278 km2 Height 1.501 m. Population Electricity Plant (Diesel) nominal power 10.890 inhab. 13,3 MW Peak demand 7 MW Wind Farm 11,5 MW Hydroelectric Substation 11,3 MW Pumping Station Energía total: 44,87 GWh Wind Energy: Hydro: Diesel: 27 GWh 6,87 GWh 11 GWh 6 MW Upper Reservoir 556.000 m3 Lower Reservoir 150.000 m3 New Diesel systems RES penetration 0 80%
  22. 22. Upper reservoir Penstock Lower reservoir
  23. 23. Wind Farm
  24. 24. Pumps and hydro power station
  25. 25. Pumps and hydro power station
  26. 26. Wind-Hydro Power Station The systems avoids: VOC SO2 47 Tm 742 Tm CO2 130118 Tm Fuel-Oil 41,257 Tm NOx 2,697 Tm The system avoids the equivalent of 20 oil tankers of 2,000 Tn each (26 are currently necessary to meet the demand) BBC: http://news.bbc.co.uk/2/hi/europe/7951286.stm EL HIERRO WIND HYDRO POWER STATION
  27. 27. Wind – Pumped Hydro Power Station A bankable project POSITIVE EXTERNALITIES • Emission reductions • Local job creation • Energy independence • Improve tourist image • etc, They are the justifications for the financial support of Spain’s IDAE to the project, through a capital grant of 35 M€ (50 % of investment cost). This public grant guaranties a reasonable PAYBACK of 11 years, and a IRR of 7.5 % for the private investor. Other instruments, such special tariff schemes is being studied to raise IRR for the private investors to 8 %. Without public support the project would not had been possible.
  28. 28. ISLE-PACT INSTITUTO TECNOLÓGICO DE CANARIAS
  29. 29. ISLE-PACT Goals • Achieve an overall objective of more than 20% CO2 emissions reduction by 2020. • Demonstrate islands’ political commitment to EU sustainable energy objectives by signing a BINDING DECLARATION, the Pact of Islands. • Develop Island Sustainable Energy Action Plans (ISEAPs). • Assess environmental and socio-economic impact of projects • Produce a pipeline of priority bankable projects and the means to finance them + = Reductions 30
  30. 30. ISLE-PACT • 62 Island authorities have signed the Pact of Islands • All 7 Island Authorities of the Canary Islands • The regions of Western Isles, Gotland, Hiiumaa, Saaremaa, Öland and Crete  The autonomous governments (regions) of Sardinia, Sicily, Azores and Madeira  18 Greek island municipalities in the Aegean  13 Cyprus communities  5 Malta local councils  Samsø from Denmark More islands are in the process of joining 60 Island SEAPS have been preparation 9 ISEAPs have been formally adopted by island authorities 92 projects have been submitted – 54 have been retained 31
  31. 31. Needed EC support for overcoming existing barriers to maximum penetration of RES in European Islands Existing barriers to RES include technical, regulatory/administrative, marketing, but European support should focuss in existing financial barries to private investment in RES projects • High cost of the technologies • High upfront payment and relative long payback periods • High financing costs The EC could contribute to RES projects in European island regions though • Favourable loans • Capital subsidies • Tariff support schemes
  32. 32. BANKABLE PROJECTS Identify and analyse potential Renewable Energies, Energy Efficiency and Sustainable Transport feasible projects, to foster private investment with public support (public-private partnership) • Identification of Projects A preliminary list of 92 identified projects has been compiled for the 11 participating European island regions • Prioritisation of key projects to achieve targets A second list of 54 projects chosen for bankability analysis Reductions • Pre-feasibility studies & screening for bankability Analysis of the projects to estimate their profitability in terms of financial parameters (PAYBACK, NPV and IRR) • Positive externalities identified and valued for each proposed project • Assessment for public supports, through possible capital grants needed to assure a minimum reasonable profitability for private investors in each project proposal
  33. 33. ALL PARTNERS – Identification of projects * Olands ** Saaremaa *** Hiumaa Number of analysed projects 3 3 2 7 11 7 6 6 3 2 2 54 0,1 IRR Number of Partners Identified Projects Co - WESTERN ISLES 3 P1 –GOTLAND 3 + 3* P2 - MADEIRA 5 P3 – CANARY ISLANDS 7 P5 – GREEK ISLANDS 24 P6- CRETE 22 P7 - SARDINIA 6 P8 - MALTA 6 P9 - CYPRUS 6 P10 - SAMSØ. 4 P11 - AZORES 4 TOTAL 92 0,09 0,08 0,07 5,8 % 0,06 Inf 6 % Inf 5 % 0,05 Inf 4 % 0,04 Inf 3 % Inf 2 % 0,03 Inf 1 % 0,02 0,01 2,000 x 10 7 2,200 x 10 7 2,400 x 10 7 2,600 x 10 7 2,800 x 10 7 Investment 23,800,000 €
  34. 34. Take a week to change tomorrow BANKABILITY INDEX This index is an indicator that expresses the percentage of public support that each project needs to achieve bankability (produce a positive return on investment for the private investor). This Bankability indicator has been defined from 0 to 10 in order to provide a parameter that allows creating a scale of “dependence on public funding” among different project. Bankability indicator=0 : project needing less that 10 % (in terms of investment cost) of public subsidies. Bankability indicator=10 : project investment completely financed with public subsidies. NEEDED PUBLIC SUPPORT 0% - 10% 11% - 20% 21% - 30% 31% - 40% 41% - 50% 51% - 60% 61% - 70% 71% - 80% 81% - 90% 91% - 99% 100% BANKABILITY INDEX 0 1 2 3 4 5 6 7 8 9 10 EUROPEAN COMMISSION
  35. 35. Take week to change tomorrow RESULTS OF aBANKABILITY ANALYSIS BANKABILITY 25% 20% Projects BANKABILITY No. of INDEX PROJECTS 00* 6 13% 0 8 13% 1 11 20% 2 9 17% 3 6 11% 4 5 9% 5 3 6% 6 3 6% 8 1 2% 9 2 4% TOTAL 54 100% 15% 10% 5% 0% * Bankable by themselves without any need of public support 00 0 1 2 3 4 5 6 8 9 Bankability Index EUROPEAN COMMISSION
  36. 36. Minigrid for La Graciosa 658 permanent residents 342 houses Objectives Minimizing the needs for fossil fuels to satisfy the electricity demands from households, productive activities and public services, by maximizing the penetration of RES. Electrric Loads Currently there is a submarine cable connection with power capacity of 1,030 kW, and a yearly electric consumption of 3.484.914 kWh. Minimum power 204,08 kW Maximum power 668,00 kW
  37. 37. Take a week to change tomorrow EUROPEAN COMMISSION
  38. 38. Take week Graciosa Minigrid fora La to change tomorrow The microgrid will combine photovoltaic, wind and diesel systems to supply, in a stand alone mode, the electrical needs of the island of La Graciosa. Control and power conditioning unit Energy storage: batteries Batteries Photovoltaic 913 kWp 1.551.250 kWh/yr Wind 50 kW 65.000 kWh/yr Diesel 500 kW 131.400 kWh/yr Yearly product. 1.667.550 kWh/yr Total cost 7.062.000 € Public support IRR (Inc.Public suport) 2.547.329, € 12,4% 1.747.650 kWh/yr Electric demand Loads Excess 80.100 kWh/yr • 36 % Public support • Bankability index: 3 EUROPEAN COMMISSION
  39. 39. Take a week to change tomorrow Punta Jandía Wind Diesel System, Fuerteventura Island Bankability Analysis on the overhaul of an existing singular stand-alone RES system EUROPEAN COMMISSION
  40. 40. CONCLUSIONS Most RES projects involve technologies that lack the competitive maturity of most fossil fuel based technologies. To attract private investors regional, national and European public support are needed. Public benefit, in terms of positive externalities, should be the bases for needed public subventions (grants, feed in tariff, etc), to guarantee a minimum acceptable return on investment for private investors. An effective strategy will need further commitment from the EC to financially support those identified projects in the fields of RES and energy efficiency. Initiatives such as PACT of ISLANDS are welcome as a first step to reinforce the strong Public-Private partnership needed to promote RES and energy efficiency in European Islands.
  41. 41. Thank you for your attention

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