UK Government announces backing for 8 major renewable energy projects

Today the United Kingdom Government announced that deals have been agreed to provide financial support for eight major renewable energy projects which will provide enough renewable energy capacity to power millions of homes.

Of the eight renewable energy projects five are offshore wind farms, the remaining 3 are biomass developments. All eight are to be supported by the Government’s Contracts for Difference support scheme. Through this scheme the government has agreed to pay a fixed rate for the power generated by these eight renewable energy developments for a period of fifteen years. The price will be determined by the date on which the developments begin to feed electricity into the grid. The sooner these developments come online the higher the price they receive will be.

The 8 projects combined could add up 4.5GW (gigawatts) of renewable electricity generation capacity to the National Grid. 4.5GW of power represents 4% of the UK’s current electricity capacity or enough electricity to power over three million homes across the UK. According to Government figures the eight projects will provide up to £12 billion of private investment in the UK economy by 2020 and support up to 8,500 jobs. Additionally, once completed, the 8 developments could produce 14% of the renewable energy the UK requires to meet it’s 2020 renewable energy generation targets. The increase in renewable capacity and reduction in the need for fossil fuels is also expected to reduce carbon dioxide emissions by 10 million tonnes a year.

The eight developments are spread across the UK. The largest project approved in terms of capacity is the new 1.2GW Hornsea wind farm which will be located off the Yorkshire coast. Two other entirely new wind farms will also receive funding; the 664MW (megawatt) Beatrice wind farm which will be sited off the Moray coast and the 402MW Dudgeon wind farm which will be sited off the north Norfolk coast. Two extensions for existing offshore wind farms were also approved for funding; a 258MW extension to the Burbo Bank wind farm off the coast of Merseyside and a 660MW extension to the Walney wind farm in the Irish Sea.  The three biomass projects are also located across the country. Lynemouth power station in Northumberland and Drax power station in Yorkshire are to be converted for biomass use. And finally a brand new 229MW dedicated biomass power station will be constructed in Teeside.

Industry trade body Scottish Renewables released a statment following the announcement that the proposed Beatrice wind farm (located in Scottish waters) had been successful in it’s application:

“It is greatly encouraging to see a Scottish offshore wind project selected for an early investment contract by the Department of Energy and Climate Change.

“Having received planning consent from the Scottish Government in March, to now get an early Contract for Difference gives the Beatrice project the certainty of support we’ve been calling for from the UK Government.

“With our huge offshore wind resource, it is not unrealistic to expect to see a number of Scottish offshore wind projects receive planning consent and secure financial support by the end of the year.

“This decision will help kick-start the offshore wind sector in Scotland, which has the potential to provide thousands of jobs and billions of pounds of inward investment to our country, while also making a significant contribution to Scotland’s ambitious 2020 renewable energy targets.”

The eight projects were selected from an original shortlist of 57 applications. A smaller shortlist of 10 was published in December. These ten sites had been chosen on the criteria of cost effectiveness. Further Contracts for Difference are to be made available in the autumn of this year. The UK Government is committed to meeting over 30% of UK electricity demand from renewable sources by 2020.

Announcing the successful projects UK Energy Secretary Ed Davey made the following statement:

“These contracts for major renewable electricity projects mark a new stage in Britain’s green energy investment boom.

“By themselves they will bring green jobs and growth across the UK, but they are a significant part of our efforts to give Britain cleaner and more secure energy.

“These are the first investments from our reforms to build the world’s first low carbon electricity market – reforms which will see competition and markets attract tens of billions of pounds of vital energy investment whilst reducing the costs of clean energy to consumers.

“Record levels of energy investment are at the forefront of the Government’s infrastructure programme and are filling the massive gap we inherited. It’s practical reforms like these that will keep the lights on and tackle climate change, by giving investors more certainty.”

It should be remembered that it is not through offshore wind and biomass alone that Scottish and UK renewable energy targets will be met. All forms of renewable energy generation will have to play their part. Particularly onshore wind; due to it’s nature one of the cheapest and most mature renewable energy technologies. We at Intelligent Land Investments (Renewable Energy) are looking forward to contributing further to meeting the countries binding renewable energy generation targets.

In other news this week it was announced that Scotland could soon be home to new form of floating wind turbine. The BAT (Buoyant Airborne Turbine) has been in development for several years through a collaboration between entrepreneurs and US military personnel.

The BATs (which some have said resemble UFOs in appearance) are filled with helium and are then tethered to the ground. The technology is intended to operate at increased heights in comparison to more traditional wind turbines  allowing power to be generated from higher wind speeds. The tether has the dual function of allowing higher wind speeds to be used and to reduce costs.

Currently 4 prototypes have been developed. The first commercial model is expected to be tested in Alaska in 2015 by American green energy firm Altaeros Energies. This model is expected to produce 30kW from a height of 1,000 feet. Successful testing of this model will then be followed by further testing of higher capacity designs at increased heights. Scotland has been mooted as a suitable location for further testing due to the high wind speeds as well as the large number of isolated rural communities located in the country. The BATs are intended to be used in isolated areas where energy has to be transported in; as is the case on several of the Scottish Isles.

Altaeros business development manager Ryan Holy said: “The real value is that we are generating more electricity because we are capturing stronger, more consistent resource, and that means that the price is going to be lower because the annual kWh produced will be a lot higher.

“In addition to that, the customer doesn’t have to deal with a lot of the logistical headaches of installing a concrete path or a tower, which can take some time and might be dependent on seasons.

“We are looking at remote and rural locations first, and any region that is suffering from high electricity costs, as our product can give that customer more energy independence and lower their price, so it could be some parts of Scotland, or any islands that have to ship their fuel in.”

The development of the BAT demonstrates that despite onshore wind being one of the most mature renewable energy technologies there is still vast room for improvement, innovation and cost reduction.

 

Wind energy save EU €2.4 billion worth of water a year

A report published last week by the European Wind Energy Association (EWEA) has highlighted the cost to the union of non-renewable forms of electricity generation.

The report, entitled ‘Saving Water with Wind Energy’, has revealed both the amount of water which is used for energy generation within the European Union each year and the amount of money which this costing taxpayers and consumers across the continent.

It should first be noted that wind energy generation is saving Europe around €2.4 billion every year. This figure represents the cost of the water which would have been incurred had the electricity generated from wind power had been generated in more traditional ways. This figure was for the year for 2012. Given the strides that wind power has made across Europe it can be concluded that this figure has risen since then and shall continue to do so.

Startlingly, 44% of the water used within the European Union is used in power generation. It should be noted that the vast majority of this 44% is used in traditional power plants. For example nuclear and coal plants which require vast amounts of water for cooling. Energy production is by far the biggest use of water within the European Union. In comparison agriculture only represents 34% of water demand, the public water supply only 21% and industry accounts for only 11%. In total 4.5 billion cubic meters of water are used by nuclear, coal and gas firing plants every year.

Given that demand for water is increasing due to population growth and density increase as well as pressures placed upon the environment by climate change water efficiency will become an increasingly important issue in the coming years. Already at least 11% of European Union citizens are affected by water scarcity – for example in the South East of England were droughts and hose-pipe bans are now an annual occurrence. Using huge amounts of water to produce electricity only exacerbates these issues.

Renewable forms of energy generation require far less water to operate than more traditional and large scale technologies. Nuclear power uses the most water to produce power; on average 2.7 cubic meters of water are needed to produce a single megawatt hour. Coal is slightly less intensive requiring 1.9 cubic meters of water for every megawatt hour and gas is further less intensive requiring 0.7 cubic meters per megawatt hour. However in comparison the amount of water required to produce a megawatt hour of wind power is minimal. Wind turbines only require water for infrequent blade cleanage and generator cooling.

Indeed the EWEA report estimated that usage of wind turbines in 2012 reduced the EU’s energy industry’s water usage by 1.2 billion cubic meters – the annual water usage of 4% of the EU’s population. Again these figures will have increased given the increase in wind capacity seen throughout the EU’s member states. 1.2 billion cubic meters saved represents €2.4 billion saved. Furthermore given the consensus existing among many economists that water is heavily undervalued the true savings could be far higher.

The EWEA’s head of policy analysis Ivan Pineda commented at the publication of the report:

“Water equivalent to over three Olympic size swimming pools is consumed every minute of every day of the year to cool Europe’s nuclear, coal and gas plants. Increasing our use of wind energy will help preserve this precious resource far more effectively than any ban on watering the garden– while saving us money”.

The report projected that by 2030 wind energy will save the EU between 4.3 and 6.4 billion cubic meters of water per year. This would represent a financial saving of between €11.8 and €17.4 billion per year. Given the expectation that water usage and efficiency will become an increasingly part of resource management governments across the European Union are being urged to factor such considerations into energy policy. Industry trade body RenewableUK’s Director of External Affairs Jennifer Webber commented:

“Water is a very precious resource – water restrictions were imposed in the UK in the summer of 2012 in areas hit by drought. One of the many benefits of wind energy is that it requires hardly any water to keep generating. This report is a timely reminder of the environmental impact of other technologies which use vast amounts of water for cooling. When Governments set energy policy, they should take this into account – it’s not just the carbon footprint that matters, but also the water swallowed up by these other thirsty generators”

In other news, this week SSE exported power from it’s offshore wind testing facility to the National Grid for the first time. The facility, sited on the North Ayrshire coast is the UK’s first, and currently only, onshore test site for offshore turbines. The site was established with support from both the UK Government’s Department of Energy and Climate Change and Scottish Enterprise.The Ayrshire site has similar wind conditions to those found offshore. The currently operational turbine is a 6MW Siemens 154 direct drive machine, some 177 meters high. Work has already begun to install the site’s second turbine; a 7MW Mitsubishi model. This is expected to be operational by the autumn.

The commencement of power exportation has been enthusiastically greeted. Clark MacFarlane, Managing Director, Siemens Wind Power Offshore UK&I said:

“We are delighted with the news of first power for our 6MW turbine at Hunterston. This is another important milestone for our next generation wind turbine technology. The SSE and Siemens team has worked extremely hard to get to this point and should feel proud of their achievement in delivering this important clean energy project.”

Ian Flannagan, SSE’s Project Construction Manager, said:

“It’s great to see the Siemens wind turbine generating electricity for the first time which is testament to the hard work and commitment shown by everyone involved in the project.

“We are busy preparing the site ahead of the second turbine, a Mitsubishi SeaAngel 7MW offshore wind model, arriving in a few months time.”

UK Energy and Climate Minister, Greg Barker said:

“SSE Renewable’s test site for offshore wind turbines is an exciting and innovative project. It will help the country take another step towards delivering £110 billion investment into our energy sector while helping to support local jobs.”

The success of the offshore turbine testing site is good news for the UK’s wind industry ensuring that it’s world leading position is maintained.

The report published by the EWEA serves to underline the many benefits which wind energy generation has; increasing both energy and water security, reducing CO2 emissions and combating climate change and helping to keep energy bills down by reducing reliance upon fossil fuel imports. We at Intelligent Land Investments (Renewable Energy) are proud to be doing our part to increase the UK’s wind energy generation capacity.

New poll reveals support for renewables

Yesterday the Department of Energy and Climate Change published it’s eight quarterly public attitudes survey.

The survey is carried out every three months to monitor the public’s attitudes to the government’s energy policies. Face to face interviews were carried out at 2,110 households in mid December. The published results confirm that the public’s support for renewable energy remains widespread.

77% of those polled stated that they supported or strongly supported the continuing use and expanding development of the UK’s vast renewable energy resources.

This represents a 1% increase on the level of public support recorded in the previous survey. This is despite the long running campaign against renewable energy being carried out by several mass media publications. Not to mention the campaign for shale gas extraction being carried out by several of the same publications. Despite this more than three quarters of the Great British public support the continued and further use of renewable energy technologies.

51% of those people polled signaled that they “support” the use of renewable energy technologies. A further 26% of those polled responded that they “strongly support” the use of renewable energy technologies. In dramatic comparison only 4% of those polled gave the opinion that they opposed the exploitation of renewable energy resources. A further 1% “strongly opposed” the use of renewable energy. This comparison demonstrates that in reality anti-renewable energy sentiments are very much a minority, if not fringe, concern. This contrasts sharply with the picture presented in some avenues of the mainstream press which seek to portray such opinions as being held by the majority of people in this country.

The survey broke down support levels for individual forms of renewable energy generation: 81% stated their support for solar energy, 71% for wave and tidal energy, 72% for offshore wind generation, 64% for onshore wind generation and 60% for biomass. Additionally the levels of “strong support” given for each technology type stands consistently between one quarter and one third of respondents. It has been suggested that the reason  wave and tidal and offshore wind have polled so highly is due their relatively low visual impact as opposed to their cost effectiveness; a standard in which other technologies such as onshore wind rank far higher.

The survey also demonstrated that public awareness of shale gas and shale gas extraction has increased significantly in the last few years. When these quarterly surveys were first carried out two years ago 58% of respondents were unaware of shale gas. As of now this figure has decreased to 30% of respondents. Over the same time scale respondents “who know something” about shale gas have increased from 32% to 52%.

However increased awareness has not translated into increased support. This quarterly survey was the first to gauge public support for shale gas. Despite much coverage in the media and strong messages of support from some senior political figures only 27% of respondents stated that they would support shale gas development. 21% stated that they would not support shale gas development. It is also worth making the point that despite much lobbying in those parts of the UK which have been proposed as areas suitable for shale gas exploration, or fracking, have seen widespread and organised protests against the proposals.

Also this week it was announced that Glasgow City Council is to become the first local authority in the UK to switch to low energy LED (light-emitting diode) street lighting after securing a loan from the Green Investment Bank.

Glasgow City Council intends to convert over 70,000 street lights to LEDs in an effort to reduce costs, energy consumption and light pollution. Street lighting costs Local Authorities in the UK  £300 million a year and produces 1.3 million tonnes of carbon dioxide emissions annually. For some Local Authorities street lighting can account for up to 40% of their energy usage. The Green Investment Bank has voiced it’s hopes that other Local Authorities will follow Glasgow City Council in participating in such schemes.

Indeed to that end the Bank is offering similar loan packages to that given to Glasgow City Council to other Local Authorities. To fund LED street lighting conversion schemes the Bank is offering low, fixed rate loans over a period of up to 20 years. Repayments will be taken from energy bill savings. The Bank is advising Local Authorities that LED switching delivers pay-back within 5 to 15 years. Following this Local Authorities can expect bills to drop by up to 80%.

The securing of the loan was announced with enthusiasm from all parties. UK Green Investment Bank chief executive, Shaun Kingsbury, stated:

“Bad lighting does not come cheap, it carries an electricity bill which can be cut by up to 80 per cent with a move to low energy, LED lighting.  Making the switch saves councils money, increases community safety and dramatically reduces the UK’s carbon footprint.”

“The GIB Green Loan is essentially a corporate loan facility that covers the set-up, capital investment and installation costs of lighting upgrades to LED, with repayments being made from within forecast savings.  Put more simply, local authorities borrow money from the Green Investment Bank, but repay the loan entirely through the money they save by changing their lighting.”

Business Secretary, Vince Cable said:

“Once again the UK Green Investment Bank (GIB) is leading the way in the green revolution. Street lighting across Britain tends to be very costly and energy inefficient, emitting the same amount of carbon dioxide each year as a quarter of a million cars on the road. This investment by GIB into new LED technology could make big strides in saving money for local councils and reducing our carbon footprint. I urge councils across the country to follow Glasgow City Council’s lead and GIB’s new Green Loan can help speed up the take up of this streetlighting.

“So far through the Green Investment Bank – the first of its kind in the world – we have invested more than £750 million in energy projects which are driving innovation and our plans for green growth. For every £1 the bank has invested, £3 has been raised from the private sector for projects in areas ranging from offshore wind to waste to energy efficiency products.”

Councillor Gordon Matheson, Leader of Glasgow City Council, said:

“My vision is to make Glasgow one of Europe’s most sustainable cities. It is our goal to improve energy efficiency, cut carbon emissions and generate savings for the public purse. Glasgow City Council is not only creating a digital and low carbon route out of recession with social justice at its heart, but also ensuring Glasgow is one of Europe’s most sustainable cities.

“Glasgow is leading the way in meeting existing challenges head on to become a smarter, more intelligent city. One of our current measures is set to see us become the first local authority to receive a Green Investment Bank loan as we work towards further embracing low energy streetlighting.”

Support for renewable energy and energy-saving schemes such as that announced in Glasgow yesterday remains widespread in the UK. It is our hope that we at ILI (Renewable Energy) can do our part to increase it.

 

A Good 2013

2013 was a good year for Intelligent Land Investments (Renewable Energy).

A good year for us and a good year for others. For the landowners and farmers across Scotland that we are gaining planning approval for, allowing them access to alternative revenue streams with the potential to secure their businesses. For the community groups and charities which we are supporting across Scotland, helping them to continue the much needed good work which they do. A good year for Scotland’s energy ambitions. The country took a step closer to the ambitious renewable energy targets which are to be met by the end of the decade. We at ILI (RE) were delighted to play our part in helping the nation to achieving these ambitions and look forward to contributing further.

At present ILI (RE) has gained over seventy seperate planning permissions for small and medium scale wind turbine developments in Local Authority Areas across the country. Many more planning applications are currently live and being considered by planning departments. The numerous small scale developments in which we are engaged allow far more people to benefit from renewable energy than the larger scale wind farms that only large scale developers and landowners allow. The revenue created by even a small scale 225wK can mean all the difference for a farmer or landowner. Having spoke to many within Scotland’s farming industry and the farmers and landowners in which we enter into partnership we at ILI (RE) understand the pressures which Scottish farming is facing. For many the revenue from a turbine means being able to reinvest in their businesses; carrying out much needed maintenance work, purchasing new equipment, hiring more staff, keeping pace with ever rising costs, improving yields and efficiency, even simply keeping a traditional family business within a family.

Additionally given the scale and spread of our developments ILI (RE) has been able to offer people innovative solutions to grid issues which had previously ruled out the possibility of development. Whether it be the use of off-grid storage or demand, the creation of new grid links  or the linking together of geographically close developments we at ILI (RE) have been able to spread the benefits of renewable energy generation and government feed-in tariffs far wider than would have been possible from the development of large scale wind farms.

It should be remembered that all of ILI (RE)’s completed developments offer a community benefit to the area in which it is located. A portion of the revenue generated from all of our turbines will be allocated to either a Local Authority Area’s Community Benefit Fund or to a designated local charity. Not all Local Authority Areas in Scotland require a Community Benefit as part of a renewable energy development application. Despite this such a benefit is a part of all of our applications regardless of their location. In areas such as South Lanarkshire, where the council has established a Community Benefit Fund, we contribute to the pot; allowing Local Authorities to target funding where needed. In areas such as East Renfrewshire, which does not have a central fund, we have established a partnership with a local charity working within the community. In this case we have entered in partnership with East Renfrewshire Good Causes.

East Renfrewshire Good Causes (ERGC) was established in 2007. From that time the charity has helped over 1000 people within the East Renfrewshire area; working to improve their quality of life. Whether it be by providing educational support, procuring medical equipment or organising days out ERGC has provided vital support to many vulnerable people. It is point of pride that ILI (RE) has been able to support, not just the vital work done by ERGC, charities and community groups across Scotland. The community benefit funding from 70 planning approvals alone represents potentially almost £2 million worth of charity funding over the 20 year life span of our turbines. We would stress that this figure will increase as more of our potential developments gain planning approval.

Scotland and the UK moved a step closer to achieving their renewable energy generation targets in 2013. We at ILI (RE) were proud that our developments helped contribute to this progress. Just we will be proud to help move us closer still to these targets in 2014. More electricity being generated from renewable sources such as onshore wind means; importing less fossil fuels, less exposure to volatile markets, cheaper energy bills, reduced carbon emissions and the creation of more jobs. Renewable energy was one the UK’s fastest growing industries in 2013.

The potential of onshore wind is beginning to be seen. As has been discussed in this blog previously new UK wind generation records are being set with increasing regularity. But this month it was Denmark that fully demonstrated the potential of wind energy to the world. The month of December saw several new and startling wind generation records being set in Denmark. Firstly, 54.8% of electricity demand for the month of December was met by wind energy. Over half of the entire country’s electricity usage for the entire month! In December 2012 33.5% of electricity demand was met by wind energy. Secondly, on the 21st of December 102% of electricity demand was met by wind power. A surplus of energy even when every other single electricity source is discounted. Lastly, over the course of the entire year 33.2% of electricity demand was met by wind power.This in a year noted by network operator Energinet.dk as being not particularly windy. From all these new records then we can see the role which wind energy can play in meeting a nations electricity needs. A statement from an Energinet.dk spokesman noted that:

“The records do not only apply to Denmark. They are also world records. Because no other countries have as large a wind power capacity in proportion to the size of the electricity consumption, as we do in Denmark.”

It is our hope that the good news continues to come in, not just for ourselves but for all of our landowners.

 

UK Wind Capacity Increases 25%

A new report published this week by trade-body RenewableUK has revealed that once again the UK wind energy industry has seen another record breaking year of dizzying growth.

RenewableUK published its annual report ‘Wind Energy in the UK’ yesterday. The report examines developments within both the onshore and offshore sectors of the UK wind industry.

Firstly, the report revealed that the UK’s installed offshore wind capacity increased by a staggering 79% over the period between July 2012 and June 2013. At the start of July 2012 there was 1,858 Megawatts (MW) of operational installed offshore wind capacity in UK waters. By the end of June 2013 this figure had increased to 3,321 MW  of operational installed capacity. Interestingly, there were four major offshore wind projects which began generating electricity and feeding it into the National Grid within this time frame:Greater Gabbard (off the coast of Suffolk), Gunfleet Sands III (off the coast of Essex), Sheringham Shoal (off the coast of Norfolk) and the London Array (in the Thames Estuary) – which is the currently the worlds largest offshore wind farm with an installed capacity of 630 MW. The completion of these four major projects demonstrates the observed trend of offshore wind projects increasing in scale. This trend can be partially explained by a reduction in costs and also improvements in technology.

The UK’s more mature onshore wind industry also underwent a period of impressive growth. 1,258 MW of new onshore wind capacity was installed between July 2012 and June 2013.  This brings the total level of installed onshore capacity in the UK up to 6,389 MW by the end of July 2013 and the end of the period covered by the report. This represents an increase of 25% in total installed onshore capacity. However it should be noted that RenewableUK estimated that at the end of June 2013 there was a further 1,571 MW of onshore capacity under construction, 4,804 MW of capacity which had been approved  but construction had not yet begun on and 7,743 MW live within the planning system. This demonstrates that there is a significant amount of growth which will occur within the UK onshore wind industry in the near future.

The period July 2012 to June 2013 also marked the first time in which more offshore wind capacity was installed than onshore wind capacity (1,462 MW compared to 1,258 MW). Of course it should be remembered that the onshore wind market is more more mature than the offshore wind market. In total, across both sectors, 2,721 MW of new capacity was installed. This brought the UK’s total installed wind capacity to 9,710 MW from 6,389 MW and represents growth of 40% and enough new installed capacity to power five and a half million homes. This level of new capacity also brought in £2 billion into the UK economy; clearly demonstrating the positive economic benefits which wind energy is creating for the UK economy.

It has been noted that the size of offshore projects is increasing but it is also the case that the size of onshore projects is decreasing. Several reasons have been put forward to explain this trend. As mentioned previously in the offshore sector costs are coming down and technology is improving. In the onshore sector the decrease in project size has been attributed to, amongst other things, the success of the UK Governments feed-in tariff scheme which incentivizes the development of smaller scale projects. Additionally the sub-5 MW market developed considerably. Indeed it has accounted for two-thirds of all onshore wind planning submissions between July 2012 and June 2013. The reduced availability of sites suitable for large scale wind farm development has also been put forward to explain the reduction in onshore project size. We could also argue that this reduction in project size vindicates the approach of ourselves at Intelligent Land Investments (Renewable Energy) as our primary focus has always been on small and medium scale developments.

RenewableUK’s Chief Executive, Maria McCaffrey commented on the publication of the report:

“We’ve smashed another record in the past year with more offshore wind installed than ever before – the 79% increase in capacity within 12 months is a terrific achievement. With onshore expanding by 25%, the wind industry as a whole has proved that it has the tenacity to achieve substantial growth.

“It’s tangible proof of the dedication of thousands of Britons who are working tirelessly to generate electricity from a clean, home-grown source at a cost that we can control, increasing the UK’s energy security.

“Tens of thousands more will be joining the industry over the rest of this decade as we build out the rest of the projects in the pipeline – as long as Government policy is supportive and provides the right framework for one of this country’s greatest modern industrial and environmental success stories to reach its full potential”.

The publication of a separate study this week further vindicated the increasing focus on smaller scale onshore developments. The study, carried out by analytical firm Verdantix and commissioned by energy consultancy Utilyx, suggests that on-site renewable energy generation could save UK businesses  up to £33 billion between 2010 and 2030.  The report forecasts that the capacity of onsite waste-to-energy plants, wind turbines, anaerobic digestors, and solar panels, as well as combined heat and power and tri-generation facilities will increase 130 per cent to 17GW by 2030. The proper development of such on-site technologies could account for 14% of all UK generating capacity by 2030 and would also bring the additional benefit of reducing carbon dioxide emissions by 350 million tonnes.

The development of such technologies would be hugely beneficial to UK businesses allwoing them to no longer have to rely on volatile international gas markets and could considerably reduce costs, particularly in the long term; not just from reduced energy bills but from reduced payments of the UK ‘carbon tax’ or carbon floor-price. Mark Stokes, director at Utilyx commented:

Traditionally businesses and organisations have focused on one aspect of energy management – typically procurement or energy efficiency.

“The report reveals the need to look at the bigger picture and adopt a joined up approach including considering on-site energy generation. In a climate of volatile and rising energy prices, decentralized energy can help businesses save money, reduce carbon, and provide energy security.”

The publication of these reports reveals not only the progress made by the UK wind industry but also the huge benefits it can still bring to the UK’s economy. We at Intelligent Land Investments (Renewable Energy) will be playing our part in delivering that.

Scottish renewable energy offsets C02 emissions from transport

The significant strides that the Scottish renewable energy industry is making towards addressing climate change were revealed last week in the Scottish Parliament.

Scottish Government Energy Minister Michael Fallon was asked how successful Scotland’s renewable energy developments had been in displacing carbon dioxide emissions in 2012.

His answer revealed that Scotland has managed to displace approximately 10.3 million tonnes of carbon dioxide in 2012. This represents an increase of 24% from the year 2011.  Renewable energy industry body Scottish Renewables would later announce that this level of displacement accounts for just under the total level of carbon dioxide emissions produced from Scotland’s rail and road transport networks. Given that the emission levels from these two networks has remained much unchanged between 2011 and 2012 we can then see that the 24% increase in carbon dioxide displacement can be nearly entirely attributed to the expansion of Scotland’s renewable energy generation capacity. Furthermore, given that the majority of new capacity stems from wind energy we can see that it is Scotland’s wind industry (companies such as ourselves at Intelligent Land Investments (Renewable Energy) which is driving the displacement of carbon dioxide.

Mr Fallon also provided figures for carbon dioxide displacement in England, Wales and the UK as a whole. England displaced 16 million tonnes of carbon dioxide in 2012, Wales 1.6 million tonnes ans as whole the UK displaced around 29 million tonnes. 29 million tonnes of carbon dioxide represents an increase of nearly 38% over 2011. As discussed in last weeks blog nearly all of the UK’s biomass generation is in England. Despite this Scotland accounted for more than a third of the UK’s entire carbon dioxide displacement.

The news was greeted enthusiastically by the renewable energy industry and other interested groups. Scottish Renewables Chief Executive Niall Stuart commented:

“Last week’s climate change report reinforced the need for concerted action to reduce carbon emissions if we are even to limit the impact of global warming, and these figures show that investment in renewables is already delivering results.

“Ten million tonnes is the equivalent of removing 99.1 per cent of carbon emissions generated from every car, bus, lorry and train journey in Scotland.”

“Renewables now generate the equivalent of 40 per cent of the demand for power from every home and business in the country, support thousands of jobs across Scotland and are making a massive dent in carbon emissions.

“The sector is delivering exactly what government wants – jobs, investment and lower carbon emissions from our economy.”

WWF Scotland‘s Director Lang Banks also stated:

“These figures clearly show that renewable energy is making a massive contribution to reducing Scotland’s climate change emissions. This contribution will only continue to grow as we move ever closer to securing all of our electricity from pollution-free sources.

“They certainly nail the lie by those who claim renewables, such as wind power, don’t make a difference. Renewables certainly do make a difference: cutting emissions as well as creating jobs.”

Also, this week a survey conducted by PwC (Pricewaterhouse Coopers) was published, revealing that 94% of energy companies are expecting ‘complete transformation of, or important changes to’ the power utility business model by 2030 as a result of growth in renewable energy and increases in distributed energy generation.

Distributed energy generation marks the move away from power coming solely from large scale power plants or even indeed large scale renewable energy developments. Small and medium scale renewable energy developments (such as those handled by ILI (Renewable Energy)) are becoming increasingly common up and down the country. Whilst the majority of these are providing power into the national grid others are generating power to be used locally; whether by communities or at on-site business developments. Such developments are expected to be become increasingly common in the next few years due to the existence of incentives such as the feed-in-tariff and falling technology and development costs.. PwC’s survey has already identified such developments as eating into the revenues of traditional power generation.

However, it should be noted that 82% of those surveyed view the increased use of distributed power generation to be an ‘opportunity’. Only 18% of those surveyed viewed it as a ‘threat’ to their business. It was also felt that energy-efficiency and smart grid technology could potentially have a similarly transformative effect upon the industry in the future provided barriers on the financial and technological side could be overcome.

PwC’s UK power and utility leader, Steve Jennings urged businesses within the power industry to seize the opportunities such changes present:

“Power utility companies will need to respond to these changes to not be eclipsed by technological and market change, while strategies that identify the best revenue opportunities in changed and, potentially transformed future market landscape, will be key to survival,”

These two pieces of news reveal the transformative effect renewable energy is having not only upon the power industry but this country as a whole. Great strides are being taken, by coompanies such as ourselves, to reduce carbon emissions, increase energy security and insulate the UK energy system from the volatile international fossil fuel markets.

 

UK’s first large-scale grid battery connected in Orkney

Last week a new type of storage battery was connected to the local electricity distribution network on the Isle of Orkney.

The new battery has the potential to be hugely important to the UK’s renewable energy ambitions as it could allow for far easier management of energy demand and would address the issue of power intermittency in renewables.

The battery was installed by Scottish Hydro Electric Power Distribution (SHEPD). The two megawatt lithium ion battery was installed at Kirkwall Power Station and represents the first use of a large scale storage battery anywhere in the UK. The battery was provided by Mitusbishi Power Systems Europe and Mitsubishi Heavy Industry after extensive trials in Japan. A similar piece of technology has been in constant use in Nagasaki for the last two years. Additionally similar battery technology, on a smaller scale, has been taken up by the electric car industry and has begun to enter the UK market. The battery will be operated by Scottish and Southern Energy (SSE). The level of cooperation involved in this trial is worth noting. Domestic energy companies, overseas developers and manufacturers, government and regulators have all been involved in this project. This demonstrates the importance with which storage and smart grid technology is being taken. Such technologies could be key to Scotland and the wider UK achieving their renewable energy targets and are being pushed hard at all levels.

The battery has been integrated with Orkney’s Active Network Management scheme. This network, or smart grid, has been in place since 2009 and was also delivered by SHEPD. Indeed, it was a world first. The Active Network Management scheme was implemented due to the relatively high level of intermittent renewable energy generation which existed on Orkney. Of course the level of renewable energy developments on the isle has only increased since then. The scheme allows the grid operators greater flexibility in managing and balancing loads and grants quicker access to back up power. This scheme has also proven highly beneficial to renewable energy developers as it has allowed them cheaper and quicker access to the grid following the completed development of a renewable energy project.

Reaction to the installation was universally positive. SHEPD’s Head of Commercial Mark Rough commented:

“This exciting trial will provide valuable research into the viability of using batteries for electricity storage. This is likely to become increasingly important to help balance the variable output from renewable forms of generation as we move to a largely decarbonised electricity generation mix.

“Although the installation of the battery will not provide an immediate solution to the current constraints on the Orkney distribution network, it is hoped that in the long term the result of the studies will help demonstrate that batteries could provide a cost effective way of freeing up capacity on the network to help facilitate new connections of low carbon generation.”

Scottish Government Cabinet Secretary for Finance, Employment and Sustainable Growth John Swinney remarked:

“Today’s announcement by SSE reinforces that Scotland is leading the way when it comes to developing and testing new ideas that may help us meet the electricity and energy needs of the future.  Smart grid technologies such as these being pioneered in Orkney are increasingly important as we move to a low-carbon economy.

“Scotland has an incredible wealth of energy resources from a range of generating technologies, capable of both meeting our energy needs and significant exports to parts of the UK and Europe.  We have a responsibility to make sure our nation seizes this opportunity.”

MSP for Orkney Liam McArthur stated:

““This is an exciting initiative and I am delighted to see Orkney leading the way in the development of energy storage options.  “Our islands have huge potential for generating renewable energy, but a lack of sufficient grid capacity is a growing problem. The active network management system has freed up capacity to allow many local projects to be connected to the grid in recent years, but new solutions now need to be found if Orkney is to realise its full potential in renewables. “I am certain that battery storage has an important role to play in ensuring we make best use of the resources at our disposal. While it is not a short term solution, the work being undertaken as part of this initiative could deliver significant and long-lasting benefits to Orkney and more widely.”

Peter Clusky, Senior Manager Renewables and Head of Government Relations for Mitsubishi Power Systems Europe said:

“We are delighted to be working with our strategic partners SSE to bring this globally significant R&D project to Orkney. We are confident that this Orkney-based project will make a significant contribution to the further development of Lithium-ion battery technology. Mitsubishi is grateful for the ongoing support of SSE, NEDO, and Ofgem.”

The battery project was funded by industry regulator Ofgem through their Low Carbon Network’s fund. Through this vehicle Ofgem has provided funding for several storage and smart grid projects across the UK. Again, it is worth re-emphasising the level of cooperation that has been involved in this scheme. It gives a very strong indication that the UK continues to view renewable energy as the future. Smart grid and other storage technologies will be key to realizing it.

This can also be seen in two other pieces of recent news. Firstly, UK Power Networks has announced it’s intention to trial a six megawatt battery system at  the Leighton Buzzard substation in Bedfordshire. When completed, which is expected to occur in 2016, this will be the largest battery system in Europe. Secondly, last week, UK Business Secretary Vince Cable announced the creation of a new Catapult Centre (centre for technology and innovation).The Energy Systems Catapult is expected to begin operation in 2015/16 and is intended to help accelerate the commercialization of smart grid and storage technologies, serving to reduce costs. Mr Cable gave the following comment:

” By committing to investment in new technologies now, we are laying the foundations for the high-growth businesses of the future. This will allow them to grow, take on more employees and keep the UK at the forefront of global innovation.”

The various developments which have occurred in this field over the last few weeks have demonstrated the commitment that the UK and Scottish Governments have to renewable energy technologies. Smart grid and storage technologies, such as the battery system currently being trialed in Orkney, will be key to unlocking the full potential of the UK’s renewable energy resource. The more energy which can be stored the more renewable energy developments can be utilized and less baseload backup will be required. Recent research produced by Imperial College London has estimated that large scale use of energy storage technologies could save the country £3 billion a year in the 2020s.

 

Reactions to Digest of UK Energy Statistics 2013

Government figures were released last week which show that the amount of electricity being produced from renewable sources is continuing to soar. The annual Digest of UK Energy Statistics revealed that the amount of electricity generated from renewables increased by 19% in 2012 compared to the previous year. Indeed in 2012 renewable sources provided 11.3% of the total electricity generated in the UK in 2012.

A spokesperson for the Department of Energy and Climate Change (DECC) described the statistical data as “very encouraging” and emphasised that the UK was well on track to meet the agreed EU target of 15% of energy to be generated from renewables by 2015.The majority of the increase in renewable generation came from the wind industry: 46% more energy was generated from offshore wind in 2012 than in 2011 and 17% more from onshore wind. The huge leap in offshore wind generation can be attributed to falling development costs and long planned developments being connected to the grid. The more mature onshore sector still saw impressive growth as more and more people have sought to develop land; whether for large scale wind farms or small and medium turbine developments. That the UK’s wind industry has contributed so much to these impressive and headline making figures underlines the importance of the industry to the country and the scale of the opportunity that Europe’s largest wind resource has presented.

The data also revealed that the UK’s total energy consumption increased by 1.7% in 2012. While this information may initially raise questions about the energy efficiency programmes being pursued in the UK: a closer reading reveals that these programmes are beginning to bear fruit. The increase in energy consumption has been attributed to the cold weather experienced in 2012. When this is factored into the figures it is revealed that energy consumption was down 0.7% compared to 2011.

The publication of that data was greeted enthusiastically by the UK’s renewables industry. Maf Smith, Deputy Chief Executive at industry trade body RenewableUK released the following statement:

“These figures confirm the recent trends we have seen that show renewables, and especially wind, playing an ever-increasing role in our electricity generation. They come at the end of a busy period for wind, which has seen the largest offshore wind farm in the world opened at London Array, as well as number of major onshore sites going live. We have made some remarkable progress over recent years, and this is another shot in the arm for the renewables sector. With wind generating around half of electricity from renewables we are leading the charge in the race to decarbonise our electricity market.

“These figures also show that as a country we are becoming increasingly dependent on expensive imported fossil fuels, with a rise to over 40% in the amount we depend on fossil fuels brought in from abroad. This yet again shows the need to continue to build on the success we have seen in renewables as a way of helping us achieve energy independence.”

In other industry news the first section of Scottish and Southern Energy’s (SSE) new power line, which will run from Beauly in Invernesshire to Denny in Stirlingshire, has been energised. The long-planned line is intended to link up renewable developments in the north of the country with energy-demand centres in the central belt. This first section runs from Beauly to Fort Augustus. The entire project is scheduled to be completed in 2015 and will have capacity for 1.2 Gigawatts of renewable energy.

SSE’s Managing Director of Networks, Mark Mathieson, stated:

“This is a proud moment for SSE. Our progress is testament to the teamwork which identified the need for the line, guided it through planning and has now delivered the first section of the UK’s longest transmission line through some of its most challenging terrain.

“Over the past two years, the project has generated around £86 million in Gross Value Added (GVA) to the Scottish economy and created around 1,500 jobs. We hope to replicate the positive benefits from this project with the other grid upgrades that SHE [Scottish Hydro Electric] Transmission is progressing as part of a multi billion pound investment programme which will help increase security of supply, decarbonise electricity supplies and promote sustainable economic growth.”

Niall Stuart, Chief Executive of trade body Scottish Renewables, greeted the news with much enthusiasm:

“This newly upgraded line will help support many renewable energy projects in the north of Scotland, providing thousands of homes and businesses across the country with clean renewable electricity.

“Upgrading grid infrastructure is one of our biggest challenges in reaching the 2020 target of generating the equivalent of 100 per cent of our electricity needs from renewables and its major investment projects like the Beauly-Denny transmission line which will help us achieve this.”

These two pieces of news demonstrate the present and future success of the UK’s renewable industry. Developers, such as ourselves at Intelligent Land Invesments (Renewable Energy), are already delivering renewable energy in large quantities to UK energy consumers, counteracting rising gas prices and increasing the country’s energy security, but there is more to be achieved. Investment and projects such as the Beauly-Denny line and the Kintyre-Hunterston line (discussed in last week’s blog) will allow more renewable energy developments to progress and help ensure that UK and Scottish renewable generation targets are met. Such ambitions require progress to be made in a variety of fields; progress which is being made.

Scotland achieves Europe’s biggest carbon reduction

Last week new figures were published by the Scottish Government which have revealed the strides the country is taking in reducing carbon emissions. Ambitious targets were set by the current administration; as with renewable energy generation.

The released statistics show that carbon emissions went down by 9.9% in 2011 compared to 2010. This is the largest reduction on record. In 2010, Scotland was responsible for 56.9MtCO2e (metric tonnes of carbon emissions) being released into the atmosphere. 2011 saw 51.3MtCO2e being released into the atmosphere – a reduction of 5.6MtCO2e. These results ensured that Scotland retained its position as the most successful EU-15 member state (the EU-15 is composed of Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden and the countries of the United Kingdom) in reducing its level of carbon emissions. Over the period 1990-2011 Scotland has successfully reduced carbon emissions by 29.6%.

Unfortunately, despite the record breaking nature of these emission reductions Scotland was unable to meet the revised target for 2011 by a narrow margin of 0.8MtCO2e. The Scottish Government attributed this to a revision of the historical data which was used to set carbon emission reduction targets in 2009. Spokespeople for the Government stressed that the country has been successful in meeting the reduction target for the year in percentage terms. The failure to meet the target in terms of carbon emissions themselves was wholly attributed to the revised and thusly increased levels of carbon emissions between 1990 and 2009. Had these figures been un-revised the 2011 target would have been exceeded.  It was emphasised that the 2020 carbon emission target is still absolutely achievable and as of this point in time the country will have to reduce its level of carbon emissions by 44% over the next seven years. Scotland is over halfway there.

Paul Wheelhouse, Scottish Government Minister for Environment and Climate Change announced the release of the data with the following statement:

‪“Latest statistics published show that Scotland is on course to meet our climate change targets.

“In 2011 unadjusted emissions fell by 9.9 per cent – the largest year-on-year drop since records began. They also show large decreases in greenhouse gas emissions in the energy supply, residential and public sectors.

“The long term trend shows we will achieve our world-leading target of a 42 per cent emissions reduction if we continue on the course we have set. I also welcome that Scotland continues to lead the EU15 on emissions reductions.

“Despite changes to the historical data on emissions, making this year’s target harder to achieve, we have come within touching distance of it, and the revised targets mean we will all need to focus our efforts in the future to stay on course.

“Whilst I am disappointed we have not achieved our climate change reduction goal for 2011 in carbon terms, we have met it in percentage terms – with a 25.7 per cent reduction between 1990 and 2011. If the baseline had not changed the target would also have been met in carbon terms.”

Responses to the information were perhaps somewhat muted but optimistic for the future. Dr Sam Gardner of Stop Climate Chaos Scotland commented:

“We recognise that this is due in part to complicated changes in how we count our emissions, but the headline of another missed target strongly underlines the need for the much tougher climate action plan – expected out later this month – that will drive down emissions year on year and give confidence that future targets can be met.”

There was further good news in other aspects of the countries long term energy strategy. For instance, nearly two thirds (65%) of homes in Scotland were ranked ‘good’ in terms of energy efficiency. This represents an increase of 15% since such data was last collated in 2007.

Additionally, Scotland is ahead of schedule in meeting the 2020 target for 100% of the country’s electricity needs to be generated from renewable sources. Provisional data indicates that in 2012 38.7% of Scotland’s electricity needs were generated using renewable sources. Given that the first marine and tidal tubine farms will begin feeding electricity into the national grid over the course of the next few years and the increasing prevalence and popularity of onshore wind then one one would expect the 2015 interim target of 50% of electricity needs to be generated from renewables to be exceeded as well.

Responding to these comments Scottish Government Energy Minister Fergus Ewing (who was involved in a round-table discussion with our Chief Executive Mark Wilson last week) commented:

“2012 was another record year for renewables in Scotland.  Scotland also contributed more than a third of the entire UK’s renewables output, demonstrating just how important a role our renewable resource is playing in terms of helping the UK meet its binding EU renewable energy targets.

“We remain firmly on course to generate the equivalent of 100 per cent of Scotland’s electricity needs from renewables by 2020 – with renewables generating more than enough electricity to supply every Scottish home.”

With the Scottish Government also announcing increased support for wind power it is clear that the country is committed to carbon emission reduction and renewable energy. ILI (Renewable Energy) will continue to do it’s part in contributing to the fulfillment of these targets and keeping energy bills down for consumers by reducing dependence upon fossil fuel imports