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Energy challenges - ever-more vexing and complex issues

01/05/2009

The energy security issue is one that promises to be ever-more vexing and complex as
geopolitics and technologies evolve. The vulnerability of Europe on gas supply, the US
on oil supply, and the entire developed world on grid infrastructure, presents a host of
energy challenges, as well as some unique opportunities for decentralized energy
systems.
The energy security benefits of moving away from a centralized power system are well
documented. Just like portfolio theory for equity investing teaches us that certain risks
can be significantly reduced through diversification, a portfolio of generating assets can
also reduce risk of failure.
In an interesting nexus between climate change, energy security and centralized grid
systems, a California utility is threatening to shut down grid power during periods of
high temperatures and wind because of the fire risk from fallen power lines. This is
causing a different kind of firestorm among the thousands of residents who face long
periods of power shutoffs under this proposal.
The strategic significance of decentralized power should not be overlooked alarm bells
are going off in the US intelligence community about cyber-attacks on the grid.
According to recent reports, these cyber intrusions are pervasive across the country.
Even though no significant damage has been done, the fear is that, if undetected, these
penetrations leave behind software that can be used to take control of a system during
a critical time of war or conflict. If a nuclear facility suddenly becomes controlled by a
hostile actor this can certainly lead to disastrous consequences. But even if the only
impact is a short-term loss of power, the potential for disaster is still real, assuming that
this leads to cascading turmoil in financial markets, telecommunications, internet
access, water and sewage service, transportation, and other essential activities. By
integrating on-site power projects with grid and smart grid systems these risks can be
mitigated, even if they are not eliminated.
Another interesting development concerns the race to commercialize electric and plug-
in hybrid vehicles. Reducing reliance on imported oil can certainly reduce the energy
insecurity quotient. However, having a multitude of energy storage units at the ready
may offer an additional enhancement to energy security. With the collapse in the global
economy and collapse in oil prices from the dizzying heights of $147 (113) per barrel,
the market force for efficient vehicles is waning, if but temporarily.
However, the major manufacturers are all looking at rolling out some form of electric
vehicle, with the Chevy Volt still supposedly on-track for 2010. Tesla Motors is delivering
an electric vehicle that can go 244 miles (393 kilometres) on a single charge and does
0-60 mph in 3.9 seconds.
A plug-in vehicle uses no gasoline in battery mode and can be discharged as a power
source during peak hours (and charged off-peak) if not used for transport. The lurking
danger is that these vehicles are likely to be powered by lithium-ion batteries marvels
of energy storage, but as the name implies, reliant on substantial quantities of lithium
for their production.
Lithium prices have already increased substantially, and as battery production ramps up
so will global demand for lithium. Interestingly, the Saudi Arabia of lithium is Bolivia,
which is said to hold 50% of the worlds lithium reserves. Merely trading an oil cartel for
a lithium cartel will not necessarily be the answer to energy security woes. But if we can
move to the point where energy supplies are decentralized all the way down to millions
of garages without creating new monopolies and choke points in the process, then we
will be moving well down the road toward a more secure energy future.
David Sweet
Executive Director
World Alliance for Decentralized Energy
dsweet@localpower.org

Making the transition to solar power with energy storage

30/01/2017
By Michael Lippert

Island grids are increasingly turning to solar photovoltaic (PV) schemes to help reduce
their reliance on diesel generators. Some practical examples demonstrate how
megawatt-scale Li-ion Energy Storage Systems (ESSs) are supporting island grids and
remote microgrids in making the transition to renewable energy.
Enabling island grids to reduce their reliance on traditional generation
Island grids are turning to solar PV schemes to help reduce their reliance on expensive
to run and environmentally unfriendly diesel generators. The challenge is that the
output of a solar plant can be highly variable, even on a tropical island. Passing cloud
cover can cause output to ramp up and down by 70% to 80% in less than a minute.
Forecasting methods have improved, but they are not yet at a level to grant operators
any certainty about the timing of their plant output. Island grids are continuing to
increase their levels of renewables. As a result, unpredictability will continue to
challenge grids over issues such as stability and substation congestion at peak demand
periods.
Lithium-ion (Li-ion) battery energy storage systems (ESSs) are now playing a key role in
mitigating the variability of PV on tropical islands. This is illustrated by a number of
examples that demonstrate how energy storage can address issues such as peak
shaving, frequency and voltage stability, grid compliance and power shaping.
Hawaii prepares for increased PV output
Natural sources of energy abound in the US state of Hawaii. Yet, historically it has had a
high dependence on oil. That is changing, with a 2030 target set for 40% of its energy
to come from renewables. This will make the state a US leader in the adoption of PV. In
order to take its integration of renewables to the next level, Hawaii is now installing ESS
technology.
 Hawaiis fourth largest island, Kauai, is
aiming to improve its sustainability and reduce its reliance on imported fuel. The electric
utility KIUC (Kauai Island Utility Cooperative) has an ambitious target to meet half of its
power needs with renewable energy sources by 2023.
The Anahola PV array is a key element in KIUCs plans. Its 59,000 panels provide a peak
output of 12 MW - around 20% of the islands daytime electricity needs.
KIUC has installed an ESS to react to the frequency fluctuations caused by the fast
ramping up and down of PV resources.
When passing cloud causes a step change in output, the ESS will absorb or release
energy. This ensures that the grid sees a smooth transition in output. Saft has applied
its energy storage expertise for this challenging application, including modeling,
systems design and engineering. The result has been an effective, reliable and
financially viable ESS solution.
Safts Intensium Max 20 M ESS supplied for the Anahola project provides 6 MW power
and 4.63 MWh energy capability. It delivers peak power up to the full 12 MW output of
the plant. The ESS is housed in eight separate shipping containers, while two containers
house the power conversion system.
To maintain grid stability the ESS reacts to frequency disturbances in less than 50
milliseconds, helping to avoid load-shedding. When output exceeds demand the ESS
stores the excess to reduce PV curtailment. This also helps to meet demand during the
evening peak period.
Following its commissioning in October 2015 the Anahola Array is helping Kauais
transition to a sustainable mix of renewable resources. The island now imports 1.7
million fewer gallons of oil each year, saving 35,000 tonnes of emissions annually.
The ESS has proved its capability to provide frequency response to events far beyond
the variability of the Anahola array. In fact, the system prevented about half of the
island being blacked out when the 28 MW Kapaia power station tripped.
Ensuring grid compliance for major new PV plant on Puerto Rico
In 2015, a new 10 MW PV plant was commissioned to feed into the grid operated by
PREPA (Puerto Rico Electric Power Authority), the state-owned energy supplier. The
plants output faced curtailment if it could not meet PREPAs Minimum Technical
Requirements (MTRs) that set out stringent interconnection regulations. Therefore, grid
compliance was a critical issue.
 The return on investment for this fully
commercial, unsubsidized project is dictated by the number of PV kWh sold. So
confidence that the plant would achieve compliance was essential for it to be an
investable proposition.
A total of 13 MTRs apply for injecting energy into the PREPA grid. Two of these relate
specifically to the use of an energy storage system (ESS). They include providing
frequency response at up to 10% of the PV nameplate power, as well as limiting the
ramp rate of the plant output to a 10% change per minute.
The 10 MW PV plant requires frequency response to be supplied at 1 MW and
controlling the ramp rate to 1 MW per minute. A 70% drop in output in only a minute is
typical for a facility of this size. This requires the ESS to discharge so that the grid sees
this output reduction over seven minutes. The reduced ramp rate is slow enough to
allow other generation on the island to respond and maintain grid frequency. Other
compliance metrics call for the ESS to ramp up and provide peak power of 4.5 MW (45%
of the plant output) for one minute, followed by a controlled ramp-down.
Saft utilized advanced modeling to identify the optimum size for an ESS capable of
delivering the required energy and power reliably over the life of the installation. This
iterative process starts with a first estimate of the battery specification that is combined
with a range of other inputs to the overall EMS (Energy Management Strategy) to
deliver a cost profile.
Modeling is used to determine the ESS cycling operation profile depending on the
location specific PV generation and compliance with MTR conditions. It then calculates
the lifetime costs and operating revenue for a particular size of ESS. By repeating the
process with a range of different sizes, it is possible to identify the sweet spot, where
the operator finds the optimum balance between revenues and costs during the whole
life of the installation.
The heart of the modeling process is the algorithm that is used by battery management
systems in the field. This mimics the performance of the ESS right down to the
individual cell level, taking account of electrical and thermal performance and
electrochemical aging.
The cost profile of the battery varies according to the specified size and technical
capabilities. A smaller ESS will have a lower capital cost. But this could lead to lower
revenues and more penalties, lower compliance with the grid code, or more curtailment
losses. It will also reduce the systems calendar life.
By plotting the total cost of ownership (TCO) against the specification, it is possible to
tailor the size of the ESS to meet the customers business objectives and operating
environment.
PREPAs ESS solution is based on the Intensium Max 20 P high power system housed in
a standard sized container that incorporates the Li-ion batteries as well as battery
management, active cooling, monitoring and power and communication interfaces.
The optimum solution for this 10 MW PV plant was determined to be three containers
providing a total of 5 MW power with just 1.3 MWh energy storage capacity. This
enables the PV plant to be controlled to ensure a smooth output while keeping grid
frequency stable around 60 Hz.
The ESS enables the PV plant to operate in full compliance with PREPAs MTRs, avoiding
any risk of curtailment of its output. The cost of the ESS has been factored into a 25-
year Power Purchase Agreement (PPA) price based on the cost per kWh of energy fed
onto the grid.
Shaping up on La Runion
Power shaping to deliver steady and predictable power is the key role for the ESS
installed at the 9 MW PV plant at Bardzour on La Reunion in the Indian Ocean. The
system injects power into the grid at a constant 40% of the plants peak power capacity.
Effectively, it makes intermittent renewable resources perform like baseline generation.

The operational pattern for the Bardzour ESS

is to deliver a large discharge in the morning as long as PV power is below the 40%
threshold. Then, it charges up during peak daylight hours in the middle of the day by
storing any excess PV, before discharging again in the evening. It must also provide
primary reserve for 15 minutes and provide voltage support.
Saft modeled the optimum size of the ESS as 9 MWh energy storage capacity. A 9 MWh
Intensium Max system housed in nine individual shipping containers has been in
operation since the end of 2014.
Integrating renewables into off-grid microgrids
Communities, industrial facilities and military bases in locations that are remote, usually
with no grid connection, often adopt microgrid solutions in order to meet their growing
power demands. In particular, they want to ensure the reliability and autonomy of their
electricity supplies and to optimize their operating costs.
Historically, microgrids have relied on diesel generators. But operators are now turning
to renewables and especially PV installations to reduce their reliance on diesel fuel.
Hybrid schemes in which diesel generation and PV plant complement each other offer
considerable savings in terms of the costs of fuel purchase, transport and handling as
well as maintenance, since the diesel genset runtime is reduced. There are also
environmental benefits from reduced greenhouse gas emissions.
Using standard power electronics, PV can contribute up to 20-30% of the power that
would be generated by the diesel genset during daytime hours. Adding dedicated
software can increase the penetration of PV to 50%. For example, a 1 MW microgrid
might accept up to 300 kW, but this could be raised up to 500 kW of PV in the best case.
Taking into account that PV generation is limited to sunlight hours, is highly variable and
does not necessarily meet the required consumption profiles, its contribution to the
overall energy mix is naturally limited.
When an energy storage system (ESS) is added, an operator can maximize the
contribution of renewables, increasing the penetration and harvesting all of the PV
power. It is possible to realise fuel savings of 50-75%. Two recent examples show how
energy storage is now making an important contribution to the development of remote
microgrids.
Harnessing the midnight sun for an Arctic Circle community
NTPC (Northwest Territories Power Corporation) is the power utility serving 43,000
people spread across 33 communities and 1.1 million square km in northern Canada.
The corporation has an ambitious strategic plan to transform the regions power supply
to be cheaper, cleaner and more reliable by replacing expensive diesel generation with
renewable energy, especially for its remote off-grid communities.
One of the most remote communities served by NTPC is Colville Lake, which lies 50 km
north of the Arctic Circle. This small community of about 160 is only accessible by air or
by ice roads during a six-week window in February and March.

For some years, the 150 kW peak and 30 kW

base load was met by two 100 kW diesel generators. It is one of the most expensive
diesel generation communities in the Northwest Territories. But since 2015 a microgrid
has been deployed that combines 136 kWp of PV with a further 150 kW of diesel
generators and an ESS. The goal was to reduce the runtime of the diesel generators,
especially in the summer when the sunlight is available for virtually 24 hours per day.
To operate the microgrid at maximum efficiency and save on fuel, NTPC needed an ESS
that would withstand the harsh temperature variations from -50C to 35C. NTPC also
wanted to ensure maximum value for money with an ESS of the optimum size to
balance ESS capacity and cost vs the size of PV panels and fuel savings. Safts response
was to provide an Intensium Max 20M Medium Power containerized system with 232
kWh energy storage capacity to work with a 200 kW power conditioning system. The
Saft team used advanced modeling to identify both the optimum size of the ESS and the
solar array.
The Colville Lake ESS is a special cold temperature package that combines layers of
high-tech insulation with a hydronic heating coil that makes use of the same hot glycol
that maintains the diesel gensets at operating temperature. This minimises the cost of
keeping the battery in its optimum temperature range.
The ESS is designed to support the network frequency and voltage. It also allows the
diesel generators to operate at their point of maximum efficiency and to be shut down
whenever possible. The generator runtime has been reduced to around 50% to provide
significant savings in diesel consumption this is particularly important for this remote
community as delivering diesel fuel via the ice road is both expensive and logistically
challenging.
Operating the diesel generators in combination with the ESS also leads to reduced
maintenance expenses as there is lower wear and tear on plant when it is run at a
steady set point, rather than ramping up and down to meet short-term load variations.
In addition to their new autonomy from total dependence on diesel, the Colville Lake
community now benefits from noise reduction and elimination of emissions that greatly
improve their quality of life.
Ensuring reliable output from the Cobija PV-diesel hybrid power plant
Cobija, the capital city of Bolivias Pando Province, is not connected to the countrys
national electricity network. Previously, diesel generators met its 37 GWh demand. A
new hybrid plant combines a 5 MWp PV array with 15 MW diesel generation and 1.2
MWh energy storage. This supports around half the energy needs of some 50,000
people, a total peak load of around 9 MW.

At Cobija, the contribution of PV is around

double that of traditional PV-diesel hybrid systems. This will save between 1.5 and 2
million litres of diesel per year helping reduce annual CO2 emissions by at least 5,000
tonnes.
To enable the Cobija plant to achieve the highest possible contribution of PV to the
energy mix it requires effective energy storage that ensures continuity of supply,
system stability and the smoothing of short-term variations in output from the PV array.
The Saft ESS solution, in operation since 2015, includes two Intensium Max 20M
medium power containerized systems, each with a nominal storage capacity of 580 kWh
and 1.1 MW peak power output. The batteries operate in combination with inverters and
intelligent control systems to ensure system stability and smooth control of the diesel
gensets.
A key role for energy storage
Achieving an effective transition to solar PV is a major challenge for tropical islands due
to its intermittent nature. Megawatt scale Li-ion energy storage is now being deployed
successfully on a commercial basis to address the key grid integration issues of ramp
rate, curtailment and frequency regulation.
ESS also has a key role to play in the development of hybrid diesel and PV microgrids
serving remote off-grid communities. It is proving its capability to work as an integral
element of the microgrid to deliver a reliable and autonomous supply of electricity. A
key benefit is that energy storage can maximize the contribution of PV. This results in a
significant reduction in the runtime of diesel generators, saving on fuel and
maintenance costs and reducing emissions.
Michael Lippert is marketing and business development manager for energy storage at
Saft.

The fuel future for gensets

10/01/2017
By Tildy Bayar
Features Editor
For mobile power applications, diesel is often the fuel of choice in remote regions
although there is an increasing demand for alternative fuel sources. We spoke with Ben
Van Hove (pictured), VP Marketing at genset manufacturer Atlas Copco, about the
current and future viability of diesel as a genset fuel, and what other options are
available for mobile gensets.

Q: What fuels do Atlas Copcos gensets

currently run on? Are there dual-fuel options?
A: We offer a large containerized genset where dual fuel is an option, so it can use
diesel or natural gas or any mixture of both. We typically reconvert it in the factory from
a basic diesel engine. We do this for larger gensets because they would typically go on
medium- to long-term rentals for IPPs in remote locations; sometimes they have a
natural gas supply, or they would like to run on biofuel.
The advantages of a fuel mixture include better transient behaviour; at peak load or
startup the gensets can run on diesel so they can better cope, while in stable running
conditions they can switch to natural gas. This is an on-demand application, as is
reconversion. Were looking into some versions with natural gas in larger power modes,
above 300 kVA. We also see demand for mobile natural gas-fired gensets.
Q: What measures are necessary to adapt gensets to run on alternative fuels?
A: Natural gas is not always the same in different regions. Were always tweaking and
fine tuning, but basically you get the gas, dry it, filter it, whatever, then compress or
expand it depending on the pressure you get it with. A pre-treatment system is mounted
on the gas train before you can use it in injection, then modified to the injection system
and controls to get the mixture right between diesel and gas. On the engine itself there
are some changes in terms of measuring and controlling temperatures and vibration.
We do natural gas, biogas, diesel and biodiesel.
Things we dont do: HFO, which is used more and more in some countries that have it
available, but its not only very corrosive but also very difficult to store and treat. For
mobile applications we dont see the benefit. Flare gas, when treated, is basically
natural gas, and we use landfill gas because, when treated, it then becomes natural gas
quality. We dont use it untreated.
Q: What kinds of alternative fuels are preferred in which markets?
A: An interesting point about the energy landscape of the future is that everybody
knows were going to see a wide variety of solutions that will play somewhere in this
new puzzle of energy sources. All kinds of solutions: some say hydrogen, some say fossil
fuels, some say we will see biomethane or landfill gas. For us, its basically about what
is widely available to the customer, which is really the driver for us. For the time being
its still 70%-80% diesel, but in some areas we see an increasing requirement for natural
gas.
Q: What are the advantages and disadvantages of diesel as a genset fuel?
A: Its important to realize that our main application for gensets is mobile prime power,
meaning that the main target niche we focus on with diesel gensets is rental
applications or mobile applications. Diesel gensets move a lot from one location to the
other. Of course if you move your genset around a lot its also very important that you
have fuel available in most places, so therefore in mobile applications diesel still is the
prime fuel used in backup gensets. That said, we do see an increasing demand for
natural gas-driven gensets.
The first advantage of diesel is that its widely available. The second is that, within a
certain engine frame size or module, the power density is higher with diesel than with
natural gas; also for transient behaviours, startup or loads, diesel engines are faster to
react. On the contrary, the advantage of gas is that its cheaper per kW and burns more
cleanly (if you forget about aftertreatment; you get a very similar level of emissions with
aftertreatment). Other fuels, such as biodiesel or biogas, are very similar. Biodiesel is
basically the same as diesel, it burns in the same way, and biogas is treated in the same
way as natural gas.
For us diesel is still the primary source, although we do see increasing demand for
natural gas or biofuel gensets. Its regional, more from stationary applications, which
you typically see in the US and Canada. In Europe we see less of that demand, although
there is some of course; again there is high demand in stationary applications, and also
in applications where there is combined heat and power (CHP) demand. In mobile
applications we see very little of that demand.
Oil-producing countries, such as Nigeria and countries in the Middle East, prefer to
export the oil they find and keep the natural gas. Gas is a waste product for these
oilfields and is very hard to transport if theres not the right infrastructure, so they
prefer to convert it into fuel they can more easily transport.
Q: Are other fuels likely to replace diesel in the foreseeable future?
A: We definitely dont see a replacement for diesel in the foreseeable future. There will
be some pieces of the puzzle eaten by other fuels, but in our applications diesel will
remain the primary source of energy.
 Q: What about the difficulties involved in transporting diesel
fuel?
A: Diesel is a liquid that needs to be transported with certain precautions, but the world
has learned how to transport it well enough. Gas is much more complicated to
transport. In general, diesel is still one of the easiest-to-transport fuels there is. There
are environmental concerns with spillage, but with all of our machines being spillage-
free and having double-walled fuel tanks we can solve this challenge very well.
Also, this is where extra efficiency elements come in. In the past you had to refill a
genset maybe every day, but thats far from the case now so, in remote areas, you only
need to refill it maybe once a week, maybe even less. Our focus is very much on using
the least amount of fuel possible, as opposed to switching.
And instead of having one big genset that runs all time, a lot of smaller ones share the
load and become a lot more efficient. There are lots of ways that we can reduce our fuel
consumption, which is as important as changing the type of fuel. You can save a lot
more CO2 by making installations more fuel efficient rather than changing the primary
type of fuel.
Q: What percentage of the genset market do you think will switch to alternative fuels in
the foreseeable future?
A: In the US with shale gas, it depends a lot on where its coming from and how its
being handled, but we see in some of the oil & gas applications where they have waste
gas available that, with some simple treatments, they can be used to generate excess
electricity and transport it off the site. Because of the very low-cost abundance of gas,
countries like Nigeria have oil produced for export and keep the natural gas for local
energy production. Of course everything changed a bit in the last 18 months with the
strong reduction in oil per barrel price, so I think interest in alternative fuels was bigger
two years ago than it is today. Diesel has become a very economical fuel nowadays. But
that might change again in the future how are we to predict fuel prices?
One driver for that is also the complexity of the emissions legislation regarding diesel
engines. Its very complex in North America, and by 2020 we will also see that in
Europe. Diesel engines will become ever more regulated, and then alternative gases
could well have an increased place in the market. Something to watch for in the next
two to three years.
Q: What are Atlas Copcos plans to increase the fuel flexibility of its gensets?
A: Different gases and fuels are always being looked at. But, the challenge is still to get
the message out about the modular power plant concept and the best way to put diesel
driven compressors together to run efficiently efficiency is the keyword that drives us
here, and is more of a focus.
At interview, Ben Van Hove was the Vice-President Marketing for Atlas Copco's Portable
Energy division. He is now President of the Medical Solutions division.
How big is the gas-based distributed power generation market?

And will it grow?

30/01/2017
By Dina Darshini

Over 100 GWe of reciprocating engines, gas turbines, and fuel cells are installed per
year [average of 2013-2016] for stationary power applications (including both
centralized and decentralized applications). Of this, research by Delta Energy &
Environments Distributed Power team shows that the market for gas-based
decentralized power generation could see significant growth to 2020,
predominantly in engines. This is set against a backdrop of more widely available
natural gas supplies due to the growth of unconventional natural gas production, as well
as the expansion of land and seaborne gas networks.
Table 1: Global 50 kW-200 MW (stationary) power generation market
The table below does not include technology units <50kWe or >200MW, nor portable
power generation units
* Note: Dual fuel systems can typically switch from gaseous to liquid fuels and vice
versa [i.e., can run on natural gas, LPG, diesel, biofuel or fuel oil].
Based on Table 2 (below), we can see that reciprocating engines and gas turbines have
similar annual installed capacity trends, 40-60 GWe per year, but reciprocating engines
enjoy far greater numbers in terms of unit sales. The fuel cell market is still small in
comparison, roughly around 100 MWe per year. For reciprocating engines, diesel is
the dominant fuel, especially at the <5 MWe size bands, whereas for gas turbines,
natural gas is already the dominant fuel. Despite forecast growth, it is very unlikely
though that natural gas-based engines will overtake diesel-based engines by 2020 in
terms of annual installed capacity.
Table 2: Global 50 kW-200 MW (stationary) power generation market

Below we highlight some of the key players in the power generation market (not an
exhaustive list). It is clear to see that most major OEMs have a wide product portfolio
(e.g., General Electric, GE, has a range of reciprocating engines and turbines which can
operate on gaseous, solid, and liquid fuels). Some OEMs also take on CHP packaging
(offering containerized units) and operations & maintenance (O&M) contracts (e.g.,
Cummins). Others leave distribution and CHP package provision to specialist CHP
packagers. Capstone enjoys a monopoly of the microturbine market.
Kohler Co has just last week acquired Clarke Energy. In a press release, David Kohler,
President and CEO of Kohler Co, said: 'Were excited about this acquisition because it
adds the distribution of large gaseous generators viewed as a clean power source to
our product portfolio. We believe Clarke Energys prime and continuous gaseous
solutions are an ideal complement to our existing diesel generator offering for standby
applications.'
Figure 1: Key market players offering power generation solutions
Note: Order of company logos are not indicative of market share. List of players are not
exhaustive.
Delta-ee asked key market players why they thought a gas-based product
portfolio was increasing in significance and heres what they said:
In general, gas as a source for power generation fuel will increase due to its
competitive pricing and for being less polluting compared to other fossil fuels like oil
based liquids and especially coal. Flexible and high-efficiency gas engines will see
demand growth due to increasing need for dynamic grid stability and peak load services
to support intermittent renewable power generation.
-- Development Manager, Wrtsil
I expect the gas market to grow strongly globally and gas engines to overtake small
gas turbines and take a large share of the market of medium size gas turbines if the
application is mainly power generation. For example - we supply generators to steam,
gas, hydro turbines, diesel, gas engines. The most active at the moment are [1] gas
engines, [2] hydro (particular small), [3] steam turbines for waste to energy or biomass,
and [4] diesel engines.
New industrial sized gas turbine projects are reduced to those projects where process
steam is required on a temperature that a gas engine cannot deliver, i.e. in paper
factories, tyre factories or other process industries. If we take a look at the second-hand
market, the market for gas turbines has grown tremendously on the supply side but
nobody is buying. Conversely, second hand engines are shipped and sold all over the
world.
-- Managing Director, TD Power Systems Europe GmbH
Some players noted that the growth in power demands across Asia, Africa and other
key regions supports the need for affordable distributed generation, especially to curb
power supply shortages and that this can be in the form of diesel or gas gensets.
But its not only traditional applications; smarter applications will also increase in
frequency.
Reciprocating engine-based power generation will play an increasing role in the future
within integrated solutions. For example, CHP units with high overall efficiencies in
virtual power plant mode to deliver control reserve for wind and solar-powered plants.
-- Director Business Development - Powergen, MTU Onsite Energy GmbH
There are few easily accessible or public domain data and statistics that cover
international distributed generation markets. It is for this reason that, for more
than a decade, Delta-ee has been investing strongly in building its knowledge and
databases of global distributed power markets, and we will continue to do this while
extending our coverage of new geographies and technologies. For example, what share
of gas turbines go into the centralized or decentralized market? What share of the
decentralized power market is power-only, cogeneration (CHP) or trigeneration (CCHP)
applications? Where are growth markets for gas engines?
To find out more about Delta-ee's ongoing Distributed Power research, please contact
Dina at dina.darshini@delta-ee.com. Dina Darshini is a market analyst at Delta Energy &
Environment, a consultancy specializing in global heat and distributed energy markets.

Retail goes green with asset finance

08/11/2016
By Richard Baker
Sales Manager, Siemens Financial Services Energy Finance

A more efficient use of energy in retail buildings can significantly enhance retailers
economic competitiveness. For instance, a 20% cut in energy costs achieves the same
bottom line benefit as a 5% increase in sales.
Despite the substantial savings that can be made, the initial investment in energy
efficiency can be difficult for retailers to bear. This should not, however, be seen as a
barrier to energy efficiency as financing schemes are available which link the expected
savings in energy costs and/or income from energy generation to cost of the
technology, negating an initial capital expenditure. And, although the sector has made
great strides towards increased energy efficiency, changing legislation and rising fuel
prices mean energy saving is becoming increasingly important to retailers.
It is estimated that most UK businesses can reduce energy consumption by 10% to 40%
every year by implementing measures such as energy efficient lighting and heating or
investing in modern technologies. The retail industry is no exception. A report from the
British Council of Shopping Centres (BCSC) shows average energy costs can be reduced
by 55% when 20 year old equipment and technology is upgraded. Retailers can also
make significant savings on maintenance costs, anywhere between 20% and 37%, if key
energy consuming equipment such as lighting, heating and ventilation is replaced.
These potential savings are particularly pertinent as the government has predicted
significant energy price rises electricity prices in the services sector will increase by
66% and gas prices will rise by 31%, when compared with 2013 levels.
Retailers will also be mindful of government plans to implement Minimum Energy
Efficiency Standards by 2018, legislation that will render the leasing of buildings or units
with low energy performance unlawful. Some buildings could be considered unfit for
purpose if improvements to meet minimum standards cannot be made in a cost-
efficient way. Therefore, the need for retail businesses to realise carbon savings is
increasingly urgent.
For many retailers, the main drawback to implementing energy efficient technology is
the initial cost. The financing issue, however, does not have to render investments in
energy efficient technology unfeasible. Viable financing options for energy improvement
measures are available in todays market.
One such example is Siemens Financial Services (SFS) Energy Finance. With the aim of
providing alternative financing for organizations looking to acquire energy efficient,
green equipment or technologies, SFS Energy Finance makes a practical connection
between the expected savings in energy costs and/or income from energy generation to
the financing arrangements monthly payments. Effectively, through SFS Energy
Finance, organisations can benefit from a financing solution that can make the
investment zero net cost or even be cash positive if the savings are greater than the
monthly financing payment.
This helps retailers make carbon-friendly investments while keeping their existing lines
of credit intact and preserving their working capital for other business activities. SFS
Energy Finance works with a range of suppliers and manufacturers of energy efficient
technology to integrate finance into energy solutions. The convenience of combining
technology and finance removes the need for customers to seek funding for equipment
acquisitions externally.
A wide range of technology including heat pumps, LED lighting, solar PV, biomass
heating, anaerobic digestion, biogas facilities, combined heat and power (CHP) facilities
and wind power can be financed. Payments can be customised to suit each clients
requirements and budgets, meaning that retailers can focus on finding the best
solutions for their premises without capital budget restrictions.
Investments like these not only have a positive impact on a companys budget, but also
on the reduction of its carbon footprint. At a time of rising energy costs, and with
Minimum Energy Efficiency Standards being implemented soon, failing to prioritise
energy efficiency will inevitably have a negative impact on a retailers business. As a
consequence, companies need to work with trusted financing providers to eliminate the
barrier of a large, up-front capital investment.
Case study
Jo and Cass, founded in 1996, has established itself across the northwest of England as
a leading salon group that offers hair and beauty treatments from experienced stylists
and beauty therapists. The group consists of four salons that pride themselves on their
luxurious surroundings and exceptional customer service. In light of inexorably rising
electricity prices, the business recognised the need to implement energy efficiency
measures to reduce its electricity bills. It therefore contacted Solarlec, a solar PV
specialist, to explore the feasibility of installing solar panels at its largest salon based in
Preston.
Following an initial assessment, Solarlec confirmed that the installation of solar PV
panels on the south facing roof of the Preston salon would yield considerable economic
benefits. Being a recognised supplier in the Energy Efficiency Financing (EEF) scheme,
Solarlec recommended the EEF specialist facility as a source of funding to the salon
group.
Through the EEF scheme, Solarlec was able to organise a seven-year financing solution
on the 15,000 solar project for Jo and Cass, which encompassed the deployment of 40
mono crystalline panels covering an area of around 65 m2 . Taking into account the
upward trend of electricity prices, the initial evaluation showed that the green
investment could save the salon over 35,000 in electricity costs over a 25-year period.
Adding in the expected payments from Feed-inTariffs (FiTs), the total savings could be up
to 73,000.
Graham Cass, Director of Jo and Cass, commented, We actually could have afforded
the investment using our own cash reserves, but given the competitive interest rates of
the EEF scheme, we decided to make use of this financing arrangement in order to free
up our cash for other business-driven activities. Saving money is no doubt our primary
objective, but its equally important for us to run an environmentally friendly business.
The investment is therefore a win-win situation. Many of our customers are very
environmentally conscious, so it has been great marketing for us to be able to say that
we can reduce over 4.5 tonnes of CO2 emissions per year with our solar panels. It also
demonstrates that we are an ethically minded business that takes action to reduce its
carbon footprint. Our green investment has helped us a great deal in drawing customers
in as they appreciate having their hair washed and blow dried using renewable energy.
Ged Rowbottom, Director of Solarlec, commented, The EEF scheme ticks a lot of boxes
for us. Firstly, we gain credibility through the association with Siemens and the Carbon
Trust, which are both trusted brands. Prior to finance being approved for potential
projects, Carbon Trust conducts an independent energy savings assessment to verify
that expected energy savings will match equipment finance payments, so our
customers can have the additional assurance that our projected figures are accurate.
The second major benefit to us is that we can use EEF as part of our initial pitch to
secure new customers. They understand straight away that this funding option can help
get their desired projects off the ground. Despite the continuous rise in electricity prices,
people are still rather cautious about making energy efficiency investments in a slow
economic climate.
Our business figures illustrate the clear benefit of being able to offer our customers an
alternative financing solution such as EEF. Since becoming an EEF-recognised supplier,
we have already increased our business with commercial clients by 20%.
Richard Baker is Sales Manager at Siemens Financial Services Energy Finance

Technology profile: Modular hybrid solar power

13/12/2016
By Tildy Bayar
Features Editor

The reach of on-site solar power is continually being extended to further off-grid
locations in developing countries through add-on options such as battery energy
storage. Hybrid solar installations, which include an alternate fuel source such as a
diesel generator to provide power during nighttime hours, are another viable option.
Aora Solars Tulip concentrating solar power (CSP) system is a hybrid power and heat
installation, but it has a twist that its developers say gives it an advantage for off-grid
locations. Unlike large-scale CSP systems, it is modular, scalable and can produce power
quickly, and unlike PV systems it can operate 24/7 without the need for an energy
storage component. It is also able to run on biogas and biofuels made from locally-
produced waste materials.

CEO Zev Rosenzweig

told Decentralized Energy that the system was specifically developed for off-grid
locations in sub-Saharan Africa, and that two demonstration units are currently in
development in Ethiopia. The firms first two installations are in Samar, Israel and
Almeria, Spain.
Rosenzweig says the Tulip plant can be built, tested and commissioned in 12 weeks. The
system is very different than the large-scale [CSP] plants being built, he says. They
dont produce anything until they are 100% complete. You need to install all 200,000
mirrors and build a seven-storey tower and have every last pipe and heat exchanger
and water cooling tower built before they can produce 1 kWh.
Our units are very small (100 kWe). After one unit [is installed] we can produce power;
this also means we can build five units at a time, which will each come online one day
after theyre finished. Weve calculated the initial systems, the controls are hard-wired,
there are wireless controls to give instructions to the mirrors to move, and this cuts
down on construction time. With 10 crews in the field, we can build 10 units every three
months. The only real limiting factor is availability of the components.
How it works
The Tulip system uses sunlight concentrated by an 800-square-metre field of sun-
tracking mirrors, or heliostats, onto a solar receiver, heating air which drives an Ansaldo
Turbines gas-fired turbine. The air (at 88 cubic metres per minute) passes through the
receiver in 1.4 seconds and is heated from the intake temperature of 600 degrees C to
around 1000 degrees C, which is the temperature we need in order to yield the 100 kW
nominal output from turbine, says Rosenzweig. A recuperator is installed to reclaim
heat from the exhaust before its release to the atmosphere at 850 degrees C. We
recoup 600 degrees of it, more or less, says Rosenzweig.
Because the air coming out of the solar receiver is not hot enough to drive the turbine
to its maximum capacity, he says, if the temperature is less than 950-1000 degrees C,
the system will automatically turn on the combustion chamber and start the fuel pump
to provide the missing heat which keeps the air temperature steady. This occurs
without any need for human intervention, so we can set the system to run either at a
set output level of 65 kW, 70 kW, 100 kW, he says.
Plant design
Aoras standard plant features 50 heliostats, but the exact number depends on its
location. The Israeli plant has 50 mirrors while the Spanish plant has 52 because the
location is somewhat further north, says Rosenzweig, and more mirrors are needed to
achieve the turbines nominal capacity year-round.
Each Tulip plant is scaled to its location, Rosenzweig explains. While the land area
needed will be similar around 2500-2700 square metres the area used for each plant
will depend on where it is, because at higher latitudes the sun spends more time lower
on the horizon so we have to space the heliostats further apart to avoid blocking and
shading. The Israeli plant is 2500 square metres, while the Spanish plant is 2800.

An
d the heliostat field is configured differently for each plant, based on a program
developed by Aora to optimize the mirrors locations in relation to the tower in order to
maximize annual production. To model the heliostat field we chose 100 different
locations, says Rosenzweig, and modelled the transit of the sun every day for a 365-
day cycle to see which location yields the highest predicted reflection of heat and
power. We can optimize for June 21, July 21 or March 21.
The tulip-shaped towers are between 30 and 35 metres tall, with a focal height of
between 32 and 37 metres. Our modelling shows that if height is an issue we can cut
as much as five metres without affecting the total output, Rosenzweig notes, and add
a heliostat if the height of the tower becomes an issue. For example, the Israeli plant is
on the flight path into an airport, so [the tower is] below the maximum height allowed.
Hybrid operation
Especially when dealing with remote locations where you have a single generator as
the only source of electricity, Rosenzweig says, its very important to keep the output
steady, otherwise you have brownouts, refrigeration and cooling outages, and it can
cause harm to the compressor if the power levels keep shifting. At night the issue is
simply that there is no solar heat, therefore all power generation is taken over by the
alternative fuel.
For this fuel, he says that because the Tulip system is aimed at villages in remote
locations, we have to use processes that make use of whatever biomass matter is
available in the location. We cant pre-specify the raw material or the biogas conversion
process.
For the firms two Ethiopian projects, it aims to use waste by-products from the
countrys sugar industry basically molasses, Rosezweig says. This material has a lot
of energy but the process of turning it to biogas is difficult', and the company is working
with an Ethiopian university to develop an efficient way to process this waste into
biogas.
The Spanish installation uses diesel as a backup fuel, which is not exactly a green fuel,
Rosenzweig acknowledges, and which also presents some problems for the system. The
components of diesel fuel are not very forgiving on combustor equipment. We can run
the system, but we need to disassemble the combustor and clean it on a regular basis.
Were using it to demonstrate the concept of hybrid operation but its not something
that we imagine to be the final configuration installed.
The Israeli plant also originally used diesel as its backup fuel, but natural gas availability
has since increased and Rosenzweig says Aora has applied for a permit to build an
underground gas storage tank, with a plan for fuel to be delivered by tanker trucks.
The gas turbine is agnostic to which fuel youre using, he says, although you obviously
have to make changes to the combustor. You have to take into account the volatility of
different fuels, and make sure you dont have combustion occurring before you want it
to happen.
Turbine suppliers are quite aware in terms of adjusting the combustion chamber in
terms of type of fuel, he adds. Changing from one fuel to another requires around two
to three hours to disassemble the combustor and swap out components to make sure
theyre compatible with the fuel type, he says, but this is not like when you build a
plant and are stuck with the alternative fuel you chose on day one. With our system it
can be changed with relatively little effort.
The problem with storage
There is no energy storage component with the Aora system; instead the system runs
on solar power during the day and switches over to burning its alternative fuel at night.

We think storage is inherently inefficient,

Rosenzweig says, because if youre generating additional power in order to store it, you
have to increase the capacity of your initial generation system. A PV installation would
be effective six hours a day, so if you had to store 18 hours worth of power youd have
to use four installations side by side, one to provide power during the solar day, and the
other three units to provide power during the 18 hours you have to use stored power.
Given the cost of a storage system, say batteries, you would need 18 MW of batteries
operating with an initial generation capacity about 4.5 times the size of the rated
required efficiency of the batteries - less than 100% - so you cant just put in three times
the additional generation capacity. You have to put in about 3.5 times that, because you
wont be able to put everything you generate into batteries and, once in, you wont be
able to take it out.
'Even if we get the cost down, storage is not a very efficient system. Everybody forgets
about the additional cost of surplus capacity,' he says.
Even with heat, you have to size the system so the heat you have left is enough [for
nighttime hours], which precludes the use of that heat for gainful purpose during the
day. We are looking to use our heat for absorption chilling, and if we were storing that
heat for backup power or running on non-solar times that option would not be
available.
A desert flower
An Israeli architect designed the tower to look like a desert flower, Rosenzweig says.
We thought if we were providing something environmentally friendly we wanted to
enhance the environment rather than create an eyesore.
We modified the original design, kept the concept and have made the flower on top a
bit smaller. The original one was larger because it had a lot of monitoring
instrumentation in it. Now that were confident that we understand the airflow inside the
receiver and temperature losses between the receiver and turbine etc, weve modified it
a bit so it looks like tulip before the flower opens.
Studies in terms of cost vs a standard vertical-type structure show that theres not all
that much difference. We decided to stick with the Tulip and rather work on optimizing
the design so we get the most out for the cost. We changed the design so the tower
itself, the stem, is enough to support the tulip on top with guy wires which helps lower
the footprint and allows us to put units closer together.
Future development
The only limiting factor for rapid development of multiple Tulip plants is component
availability, Rosenzweig says, while the real constraint there is availability of the
turbines'.
My vision for the next five years would be installing 250-300 units per year in hopefully
five different locations or countries. That will be constrained by the ability of the turbine
supplier to supply the turbines. We would hope to negotiate delivery availability that
would grow as we grow. This would mean the turbine supplier going back and
negotiating with his supply chain to have all components available.
Im confident that this five-year vision is quite achievable once we have our first two to
three major installations, he adds, noting that the company is already working with
Italian developers to install a large number of units at a location in Sicily, and that
these will be biogas-fuelled.
While the company is involved in other initiatives in other African countries,
Rosenzweig terms Aoras Ethiopian project the companys first foray into what we see
as our niche market, which is providing power in remote locations in off-grid areas. The
company has signed a memorandum of understanding (MoU) with Ethiopias
government for the development of three research units initially, although Rosenzweig
sees the potential for 350 to 500 Tulip plants in the country.
However, there are some potential challenges. For one, there is the higher cost of CSP
as opposed to PV. In Ethiopia, one of the ways were able to deal with that is they have
a reasonably developed industrial infrastructure and we will be teaming with a local
industrial company to manufacture everything except the turbine, receiver and some of
the very sophisticated ceramic insulation and other components inside the receiver,
says Rosenzweig. But basically the whole balance of plant will be manufactured locally.
This helps us keep costs in check, and were looking at expanding the scope of the
Ethiopian agreement to cover other countries given manufacturing in Ethiopia.

UK award-winning decentralized energy includes demand side

schemes
19/12/2016
By Steve Hodgson
Contributing Editor
The winners of this years UK Association for Decentralised Energy (ADE) Awards
included schemes that generated no energy heat or power at all. Previously the UK
Combined Heat and Power Association, the organization always represented the related
district heating (DH) sector and the ADE now also speaks for demand side services as
well. Meanwhile, a low density district heating system which includes solar thermal
among its heat sources won the overall Project of the Year Award.
The ADEs awards ceremony was held last month at Londons Natural History Museum;
itself home to a trigeneration (heat, power and cooling) system installed a decade ago
by Vital Energi and responsible so far for energy cost savings of 11 million (13
million).
Each year, the winning schemes serve as a snapshot of best practice decentralized
energy activity in the UK, which has seen a revival in new district heating schemes in
recent years, including the highly visible CHP/DH scheme built to serve part of the
Olympic site in East London in 2012 itself a winning scheme. Awards were made in
seven categories.
Industrial Project of the Year
Unusually, the Industrial Award was won by two projects.
Open Energis efforts to manage electricity demand for its client, by adjusting the power
input to over 200 electrically-heated bitumen tanks at asphalt plants across the UK,
according to price conditions on the power market, was one winner. The technology is
ideal for use with stored energy devices such as bitumen tanks because, although they
need energy, as long as they operate between expected temperature limits it does not
matter precisely when that energy is used.
Demand response comes into play during spikes in power demand, eg as millions of
people across Britain put the kettle on to boil during popular TV advert breaks, and
responding to these spikes rapidly is critical to ensure the grid is balanced and the lights
dont go out. Open Energi was praised for bringing its dynamic demand response
technology into a new area of the industrial sector.
 Viridor, the second winner in
the industrial sector, was awarded the accolade for leading the way in industrial heat
decarbonisation with its Runcorn Energy-from-Waste plant (pictured, right). One of the
largest and most efficient CHP facilities of its kind in Europe and fully operational from
April 2015, the 70 MW (electrical) and 51 MW (heat) scheme provides energy to a local
chemicals company INEOS ChlorVinyls. Fuelled with pre-treated refuse derived fuel
(RDF), the scheme also helps to address Greater Manchester Waste Disposal Authoritys
requirement to avoid sending waste to landfill sites.
Homes and Communities Project of the Year
The winner of the Homes and Communities Award was E.ON for its Cranbrook and
Skypark project, a 1.7 MW multi-source energy system supplying hot water and heat to
homes and businesses through a district heating system. This project was so
outstanding that it was also awarded the overall Project of the Year Award.
Cranbrook and Skypark (pictured, below right) is said to be the first DH scheme in the
UK to serve a low-density housing client. The Devon scheme will eventually serve 3500
homes and a business park of commercial and industrial units, all connected to an
energy centre which includes CHP, heat pumps, solar thermal, solar PV and gas boiler
technologies. The project uses thermal storage technology to balance these sources
against loads generated by the domestic, commercial and industrial clients.

Commercial/Public Sector
Project of the Year
Veolia and the London Borough of Southwark were awarded the Commercial/Public
Sector Award for their public-private partnership South East London CHP (SELCHP)
project which, originally opened 20 years ago as an electricity-from-waste project, was
pre-equipped to also provide heat to external clients, once these could be identified and
connected. Now, SELCHP brings benefits to local communities in south-east London by
delivering low carbon heat to around 2,700 properties managed by the Borough of
Southwark.
The scheme burns wastes from London households and from some businesses; the
generated electricity is exported to the national grid.
Consultancy Project of the Year
The Consultancy Project of the Year Award went to FairHeat for making both technical
and social improvements to underperforming district heating schemes.
The company was appointed to diagnose and analyse the efficiency of a DH system
serving social housing provider Octavia Housings Elizabeth House estate in London. It
delivered a 68% reduction in network losses, allowing the housing provider to ensure
the lowest possible heating tariff for its clients a 50% reduction.
Integrated Energy Award
E.ON and Edina were the joint winners of the Integrated Energy Award for their
successful regeneration of a 20-year old CHP/district energy project (pictured, right) in
the heart of the City of London. The Citigen scheme supplies electricity, heat and
cooling to a community of mainly commercial buildings and many of the Corporation of
Londons premises, saving 12,000 tonnes of carbon dioxide per year.

Following a review of the

performance of the existing plant, E.ON contracted Edina to install two new gas-fired
engine generators with a total power generating capacity of 8 MW.
Innovation and Customer Engagement Awards
Another winner from the demand side was Restore, which scooped the Innovation Award
for its Flexpond software, a cloud-based platform that reduces energy costs for
industrial energy users by commercialising flexible/reserve power arising from demand
management.
Finally, the Customer Engagement Award was presented to Switch2 its work with
Sheffield Council and 6000 tenants connected to the citys district heating scheme. The
company took on a huge customer engagement programme as part of managing the
installation of a new district heating pay-as-you-go system.

Alternative energy regulation in Ukraine - an inside view

22/11/2016

By Igor Dykunskyy, LL.M

Partner, DLF Attorneys-at-Law, Kyiv, Ukraine

Since April 2009, Ukraine has made efforts to financially stimulate the generation of
electricity from alternative sources of energy. Such stimulation has resulted in, first of
all, legislative provision for a feed-in tariff (FiT), i.e., the guaranteed obligation of the
state to purchase green energy from its producers, and also in the establishment of a
significant number of tax benefits for producers of alternative energy.

For several years FiTs in Ukraine for electricity produced by ground-mounted solar power
plants were the highest in the world, but this was not always economically justified.
Following significant changes in the FiT calculation procedure (which were introduced in
June 2015), there are prospects that the amount of state aid and the conditions for such
aid will not be changed for at least the next few years.

Until 2015 the producers of green energy enjoyed more tax benefits than they do now.
Amendments made to Ukraines Tax Code in late 2014 cancelled tax privileges
concerning income and land taxation for producers of electricity from alternative energy
sources.

As of today, the alternative energy sector remains attractive for investors despite
certain peculiarities of financing such projects in Ukraine, the cancellation of some tax
benefits and a decrease in the FiT amount. There is also interest in this sector on the
part of communal enterprises, which aim to sort out problems with landfills and
wastewater treatment plants or optimize street lighting in cities. So how much could be
earned through green energy?

As of 16 July 2015, there is a new procedure for calculating the FiT, i.e., the special tariff
for the purchase of electricity generated from alternative energy sources (except for
blast furnaces and coke gas, and hydropower plants with a capacity of up to 10 MW). In
addition, the possibility of making money from the production of electricity from
alternative energy sources might be employed by both legal entities (industrial plants)
and households. The latter may now be equipped not only with solar power plants, but
also with wind turbines with a capacity of up to 30 kW (not exceeding the capacity
allowed under the agreement on electricity use).

The new procedure for FiT calculation was established by the Law of Ukraine On
changes to certain acts of Ukraine in relation to provision of competitive conditions of
electricity generation from alternative energy sources dated 4 June 2015, which
amended the Law of Ukraine On electricity. It is worth mentioning that the FiT for
electricity generated at plants commissioned during previous years will continue to be
applicable in the amount which was specified for each type of energy object.

The FiT is fixed in euros until 2030, and its amount is specified by multiplication of the
retail tariff for consumers of the second voltage type as of January 2009 (UAH 0.5846, at
that time 0.05385) by the FiT coefficient for the relevant type of alternative energy.
However, now the National Commission for State Energy and Public Utilities Regulation
will quarterly (formerly monthly) convert the FiT into national currency on the basis of
the average official currency rate of the National Bank of Ukraine. All generated
electricity, except for volumes for personal needs, will be paid under the FiT.

Another new development was introduction of the FiT for electricity generated from
geothermal energy. Ukraines wholesale electricity market is obliged to purchase such
green energy under the FiT and to make full payment for the cost of electricity,
regardless of the installed capacity or volume of supply.

The amount of the FiT depends on the commissioning date of the electricity generation
facility, including phase of construction of the power station (launching complex) that
produces electricity from alternative energy sources. The certificate issued by the
authorized state construction body, which certifies compliance of the constructed object
with the project documentation and its operational readiness (for objects of categories
IV and V of difficulty), or the registered declaration on operational readiness of the
constructed object (for objects of categories I-III of difficulty) serve as confirmation of
the fact and date of commission.

Starting from July 2015, the FiT amount of for industrial solar power plants was
decreased. This decrease took place due to cancellation of the tariff coefficient (1.8)
applied to the peak period.

The FiT for electricity generated from wind power remained unchanged and depends on
the single unit capacity of the wind turbine.

The FiT for electricity generated from biogas and biomass was increased. In addition,
biomass was legally defined as a non-excavated biologically renewable substance of
organic origin, which is capable of biological decomposition, such as waste products,
fishery, forest and agriculture (crop and livestock) residue, and residue from
technologically connected industrial areas, as well as components of industrial or
domestic waste capable of biological decomposition.

As the FiT coefficient has increased, the FiT for electricity generated by hydropower
plants is now significantly higher.

The feed-in tariff is as follows (in euros):

Type Capacity (kW) Commission date

 01.07.- 2017 2025
2016 2020 2024
31.12.2015 2019 2029

Ground-mounted solar
0.1696 0.1599 0.1502 0.1352 0.120
power plant

Rooftop solar power

0.1804 0.1723 0.1637 0.1475 0.130
plant

Wind turbine <600 0.0582 0.0517 0.045

600-2000 0.0679 0.0603 0.052

>2000 0.1018 0.0905 0.079

Biomass 0.1239 0.1115 0.099

Biogas 0.1239 0.1115 0.099

Hydro plant <200 0.1745 0.1572 0.139

200-1000 0.1395 0.1255 0.111

1000-10000 0.1045 0.0942 0.083

Geothermal energy 0.1502 0.1352 0.120

Solar power for private

<30 0.2003 0.1901 0.1809 0.1626 0.144
household

Wind turbine for <30 0.1163 0.1045 0.093

private household

If within a power generation installation (including commissioned power stations and

launching complexes) that uses alternative sources of energy there are several
coefficients (and, respectively, different amounts) of FiT applied, special commercial
accounting for each phase of construction (launching complex) and/or station shall be
established.

The mandatory local content requirement (share of components of Ukrainian origin used
during construction of the power generation facility) was cancelled. As of now, the use
of equipment of Ukrainian origin by investors will be stimulated by the relevant
premium to the FiT (throughout all term of its validity), if the generation facilities
(phases of construction, launching complexes) are commissioned between 1 July 2015
and 31 December 2024. However, such premium to the FiT is not applicable to power
generation by private households.

If equipment of Ukrainian origin is used at least on the level of 30%, the premium to the
FiT will be 5%. If equipment of Ukrainian origin is used at least on the level of 50%, the
premium to the FiT will be 10%.

On 26 February 2016, the procedure for determining the level of use of Ukrainian-made
equipment in power generation facilities using alternative sources of energy and
establishment of the relevant FiT premium came into effect. Ukrainian origin of
equipment shall be confirmed by the appropriate certificate on Ukrainian origin issued
by the Ukrainian Chamber of Commerce.

The level of use of equipment of Ukrainian origin in power plants that generate
electricity from alternative energy sources is defined as the sum of respective
percentages of specific items of equipment. Thus, for blades and towers, this indicator is
established at the rate of 30%, for gondolas and main frames at 20%. By using solar
photovoltaic (PV) modules of Ukrainian origin, one may expect a FiT premium of 5%, as
the specific percentage for PV modules is 40%; for mounting systems for PV modules,
inverter equipment, energy accumulation and tracking the percentage is 15%. The Law
provides a list of equipment for each type of alternative energy source that qualifies for
the FiT premium.

Pursuant to Article 197.16 of the Tax Code of Ukraine, no VAT is applicable to

transactions on import to the territory of Ukraine of:

equipment which is functioning on the basis of alternative energy sources;

energy saving equipment and materials; means of measuring, control and
management of energy resources; or equipment and materials for production of
alternative types of fuels or electricity from renewable energy sources;

materials, equipment or components for manufacturing equipment which

function on the basis of renewable energy sources; raw materials, equipment and
 components for production of alternative types of fuels or electricity from
renewable energy sources; energy saving equipment and materials; products
whose operation provides saving and rational use of energy resources; or means
of measuring, control and management of energy resources.

Pursuant to Article 282 of the Customs Code of Ukraine, the abovementioned goods are
exempt from import and export duties. However, such goods are exempt from import
VAT and import/export duty only if the taxpayer uses them for own production, and if no
identical goods with the same qualities are produced in Ukraine.

It is worth mentioning that the list of such goods with specification of codes under the
Ukrainian Classification of Foreign Economic Activity Products should be established by
the Cabinet of Ministers of Ukraine. However, as of today such a list is not approved
and, as a result, it is impossible to apply this tax benefit until the relevant resolution is
adopted by the Cabinet of Ministers of Ukraine.

Transactions concerning sale of electricity generated by qualified cogeneration units

and/or from renewable energy sources are not subject to excise tax pursuant to Article
213.2.8 of the Tax Code of Ukraine.

On-site generation more important now than ever

24/10/2016

By William Kaewert
President and CTO, SENS LLC

The demand for on-site generation has historically been driven by the risk of local or
regional power outage typically caused by bad weather such as hurricane or ice storm.
The bulk power grid is also susceptible to cyber attacks, physical assaults on critical
facilities and severe damage from both deliberate and natural electromagnetic pulses.

The purpose of this article is to highlight why traditional fossilfuelled on-site generating
systems are likely to proliferate and become substantially more valuable to their owners
as renewable generation increases its share of the bulk US electric power supply.
 Even without the impact of renewable power
generation, the US power grid has in recent years become increasingly fragile. Grid
power interruptions have been increasing in both frequency and duration.

According to US Department of Energy data, An aging infrastructure, combined with a

growing population and more frequent extreme weather, are straining the electric grid.
The annual average of outages has doubled every five years, which means the current
fiveyear annual average is four times what it was 15 years ago. Comparing 2000 to
2013, monthly average grid outages increased six-fold.

Researchers at Lawrence Berkeley National Laboratory and Stanford University have

found that the total number of minutes customers go without power each year has been
increasing over time.

The increasing frequency and duration of outages indicate that todays bulk electric
power system is highly stressed. More stress and more outages mean that on-site power
will become vital to new groups of users that were able to safely forego it in the past.
Todays power grid stress, however, appears to be trivial compared with what is coming.

Renewable generation targets are frequently set by politicians without regard for bulk
reliability concerns. Unfortunately, the benefits of more renewable energy are widely
touted, but rarely presented with countervailing discussion of the unintended
consequences to either the reliability or cost of electric power.

There are three significant power system issues related to renewables, all of which
suggest that the on-site power generation (diesel- or natural gaspowered generators)
will become increasingly important in the future:

The rush to renewable energy production will reduce grid reliability;

Variable renewable energy production will lead to increasingly volatile electricity

prices;
 Stubbornly high prices for energy storage mean that on-site generation will remain a
viable customerpremises solution to electric reliability for a long time.

The rush to renewable energy production will reduce grid reliability

Essential Reliability Services (ERSs) including voltage support, frequency response and
other services are vital to stable and reliable operation of the power grid. Voltage
support, for example, prevents voltage collapse or system instability. Frequency
response is necessary to maintain continuous load and resource balance by
automatically responding to deviations from normal operating frequency. These services
typically require that the bulk power system increase or decrease generation or shed
load when necessary to maintain stable power grid operation.

The need for ERSs has historically been met with conventional generating systems such
as steam turbines, hydroelectric turbines and combustion turbines. These conventional
generating systems all share the property of having large rotating masses, the inertia of
which enables them to ride through shortduration deviations in electric demand. In
contrast, the rotating mass of wind turbines is relatively small, and solar systems offer
zero rotating inertia. It is thus more difficult and costly to provide essential ERSs with
renewables than it is with conventional generation.

Conventional generating systems also share the property that their output is governed
by manmade controls. When more output is needed in response to voltage or
frequency sags, for example, these controls can typically increase the rate of energy
input (opening valves to inject more combustion fuel, or admitting more water to boost
hydroelectric turbine output). In contrast, the output from wind and solar generating
systems is always outside of human control because the inputs are out of our control.
We obviously cant make the sun shine more brightly, force passing clouds to part or
keep the wind blowing for another few hours. In fact, unpredictable and variable output
from renewable generation can therefore cause voltage and frequency variation rather
than solving it, compounding the difficulty and expense of delivering Essential Reliability
Services.

In other words, because conventional resources produce abundant ERSs, modest

penetration of renewables poses negligible reliability risk. But because renewables do
not readily provide ERSs, high penetration levels represent significant risks to power
grid reliability.

Exhibit 1 from a North American Electric Reliability Corporation (NERC) report shows
that increasing renewables penetration in the US bulk power system will reduce
provision of Essential Reliability Services. The Today scenario below shows that there
are fewer gaps (white blocks) in ERSs with largely conventional generation than there
will be in the Potential Future when there are higher levels of variable generation.

Exhibit 1: Potential future gaps in ERSs with increased renewables

penetration
So, unpredictable variability in renewables output will very likely lead to gaps in
Essential Reliability Services. Related to this is another issue. As the share of renewable
power sources increase, so will the volatility of electricity flows on transmission and
distribution lines, as operators attempt to move power from where its produced to
where its needed. It is important to understand that a key assumption behind
renewable energy is that there exists a reliable and costeffective means to move
electric current from regions of abundance to areas of scarcity. Transmission bottlenecks
will occur as the penetration rate of renewables continues to increase. The consequence
of such bottlenecks will be lower reliability and higher costs of electricity.

Designers of our existing transmission and distribution systems never designed the grid
to move large quantities of electricity in response to the vagaries of changing weather.
The new demands imposed by the siting of renewable energy sources long distances
away from consumers could well cause more frequent and longer duration outages. A
California Energy Commission fact sheet concedes that moving to 50% renewable
energy (the states goal by 2030) could make balancing electricity demand and
generation increasingly challenging at some times during the day and year.

As renewable energy production increases its share of the US market, what will the
change in bulk power system reliability look like? While we cant know for sure, there
are indications that, as with most systemic changes, the change will be a tipping point
rather a linear decay. Forecasts for Germany, which leads the US in renewable energy
adoption, suggest that this tipping point might occur at the point where renewable
energy production begins to regularly replace base load generation:
Exhibit 2: Renewable energy in Germany in 2012 and 2020

Exhibit 2 includes two scenarios. The left graphic illustrates a week of actual 2012
German power generation showing both renewable and nonrenewable sources. The
right graphic shows estimated power generation in 2020. The 2012 graphic show that
solar output is very effective at satisfying much of the normal daily peak load. The 2012
scenario is nearly ideal because base load systems continue running at relatively
constant output, rather than facing large ramps, and renewable energy systems deliver
output coincident with peak demand. The relationship in 2012 between conventional
and renewable energy generation is symbiotic. Just as important, power flows over the
T&D network are likely little different from the conventional generation world for which
they were designed. The system appears to work very well when renewables only
supply power at the margin, as they did in 2012.

In contrast, the forecast for 2020 is no longer symbiotic. Solar output has largely
replaced baseload fossil and nuclear generation but for only a fraction of the average
day. Unless this energy is both generated and consumed at each users site, which is
highly unlikely, wild swings in power output and transmission system loading will occur.
As this happens, suppliers and consumers will attempt to trade and move electric power
over transmission pathways never designed for this task, which in turn will significantly
challenge the German electric grid. As US renewable energy production reaches this
same tipping point the reliability of North American power grids could well fall off the
same proverbial cliff.

According to the German Energy Transition Book by Craig Morris and Martin Pehnt,
[b]aseload power is incompatible with intermittent renewables []. To complement
renewables, we will need dispatchable power plants that can ramp up and
down relatively quickly. On-site power meets this requirement perfectly, and
will certainly be part of the solution to the problem of managing tomorrows power grid.
Historically, on-site power has been an insurance product that mitigates risk of power
outages. It is not difficult to envision a new future role for on-site generation, which is
delivering value to its owner each day by curtailing grid power consumption and/or
avoiding exorbitant timeofday pricing by utilities.

Variable production will lead to volatile pricing

We intuitively understand that power, like any good, will be cheap when there is too
much of it, and very expensive when it is in short supply. As with any economic good,
the more abundant or scarce electricity is the more its price will vary. Time of day
pricing is already a reality in some parts of the US. In Germany, variable renewable
energy output has already resulted in such massive swings in the supply and price of
energy that customers are sometimes paid to consume power. The reverse is certainly
true: when power is truly scarce the price will become exorbitant. We therefore reach
the very logical conclusion that it would be wise to store power when it is abundant and
cheap, and draw stored reserves down when grid power is scarce and costly.

One obvious solution would be to consume as much power as possible when it is cheap
and then curtail usage when it is costly. While nearly all of us either are, or soon will,
modifying our power consumption in response to market signals, all of us will reach a
point where the prices demanded during peak times may become unaffordable. One
solution to this problem will be to generate ones own power during peak demand times.

Another obvious solution to the problem of large swings in supply and prices is energy
storage.

Unfortunately, energy storage is costly and may remain so for some time. Stubbornly
high prices for energy storage mean that on-site generation will remain a
viable customerpremises solution to electric reliability for the foreseeable
future.

In a world where electricity is sometimes dirt cheap, and other times very costly, the
logical solution would be energy storage. Plentiful storage would enable users to buy
cheaply and either use their excess when power is expensive, or resell it to others.
Unfortunately, although the cost of battery technology continues to drop, the price of
truly useful amounts of storage remains high, as shown in the following forecast for
2020 California.

Exhibit 3: Forecast California 2020

The red line in Exhibit 3 shows 2020 Californias socalled duck curve of daily electrical
production. Bulk power from solar generating systems peaks during midday, replacing
a large portion of output from traditional generating sources. With regard to energy
storage, the pink shaded area depicts the magnitude of energy storage California would
need if it were to meet 100% of the evening peak demand with energy storage instead
of generating in excess of the 24,000 MW value shown on the chart at about 4:30 PM.
Starting at about 4:30 PM when solar output wanes, evening peak demand of ~35,000
MWh, represented by the light red hump, lasts from 4:30 until nearly midnight. At
todays energy storage cost of between $750,000 and $900,000/MWh, the cost to
California of this storage would range from $25 billion to $31 billion.

To put this number in perspective, 35,000 MWh is double the entire 2015 global lithium
ion battery manufacturing capacity of 14,600 MWh. The cost of this storage would
represent more than half of Californias entire annual agricultural output of $54 billion.
Exacerbating the high capital cost is the fact that, because the lifetime of gridscale
batteries is only estimated at eight to ten years, the huge expense would recur.

Given this stubbornly high cost of storage, it seems likely that most of the evening peak
demand in 2020 California will be met either with either variable generation or by
compelling users to reduce demand through punitive pricing schemes. As this future of
highly variable pricing unfolds, the return on investment of on-site generation resources
likely only gets better with time.

Summary
A 2004 paper by Albert, Albert and Nakarado concludes that vulnerability of the
electric power grid is inherent to its organization and therefore cannot be easily
addressed without significant investment.

The authors are clear that truly reliable operation is possible only by adopting
distributed generation, where users or local communities generate their own power.

In recent years reliability of the US power grid has declined. We are actively accelerating
this decline by replacing conventional generators that provide plentiful Essential
Reliability Services with renewables that do not by themselves provide Essential
Reliability Services. We are also accelerating this decline by tasking the grid with
moving electricity from new and different sources of generation over pathways that
were never meant to move large quantities of power. Even if we get really lucky and
dont suffer significant reliability problems or a big, longduration blackout, the way we
pay for electric power is sure to change. Time of day pricing is already a reality in parts
of the US. The law of supply and demand says that as the percentage of total US power
delivered by renewables increases the variation in timeofday electricity pricing will
only increase.

When considering electric grid reliability and almost certain increases in the volatility of
electricity prices three conclusions are clear about on-site power generation:

The only way to guarantee power to critical systems will be to make it locally, and

As timeofday pricing volatility increases the economics of on-site generation will

improve;

On-site generation, today regarded as only an insurance product, will in the future
provide new value by enabling its owner to avoid exorbitant timeofday electricity
prices.

William Kaewert is President and CTO of Coloradobased Stored Energy Systems (SENS)
LLC, a supplier of nonstop DC power systems

Stronger together
24/10/2016

By Dr Thomas Hillig
Managing Director, THEnergy
Microgrid consultancy THEnergy sees increasing interest in strategic partnerships for
both main segments of the microgrid market: remote solar- or wind-diesel hybrid and
utility microgrids

Microgrids are one of the hottest topics in the renewable energy

world. Solar and wind energy are changing the paradigms of electricity generation
toward more decentralized solutions. The utility microgrid segment is mainly driven by
autarky and reasons related to supply security, while solar- or wind-diesel hybrid
microgrids are mainly driven by cost reductions. In remote locations, in particular, diesel
is an extremely expensive source for electricity generation and renewable energy is
typically competitive without additional incentives.

Recently, though more and more projects are being realized, the bottleneck is still on
the market side. Many players have formed or are in the process of forming partnerships.
We see two main targets for these partnerships: market access and technology
enhancement by pooling complementary solutions, says Dr Thomas Hillig, Managing
Director of consultancy THEnergy.

On the technology side, ABB has teamed up with Samsung, and Ideal Power with LG
Chem and Aquion Energy, in order to provide tailor-made microgrid solutions featuring
energy storage systems. The inverter manufacturers Fronius and Victron have also
joined forces in a strategic partnership for smaller microgrids. For larger plants,
Schneider Electric has developed a control solution in co-operation with DEIF.

Sometimes the objectives of the partnership are twofold. For microgrids, Caterpillar has
lined up with First Solar. From a technology perspective, Caterpillar covers
diesel genset expertise, while from a market perspective the firm is a leading supplier in
the mining industry a key target sector of many microgrid players. First Solar
contributes photovoltaics (PV) expertise. Sometimes the collaboration goes beyond pure
strategic partnerships. French utility ENGIE has invested $6 million in California-based
Advanced Microgrid Solutions (AMS) targeting utility microgrids. French oil and gas
major Total SA has acquired majority and minority stakes in several renewable energy
and storage companies that cover key aspects of the microgrid value chain. Among the
investments are Sunpower, Saft, Aquion Energy, STEM, LightSail Energy, EnerVault,
Ambri, Offgrid Electric, Powerhive, and DP Energy. It will be interesting to see if Total SA
intends to integrate these investments in the future.

We have been working with several companies in screening the microgrid market
landscape for potential partners and have assisted them in setting up partnerships.
Especially for smaller players, strategic partnerships are an important vehicle for
entering new markets, says Hillig. We are constantly looking at growing our network of
microgrid players in emerging markets. At this stage, many of
our European and American customers intend to access new markets through strategic
partnerships. We also help them to design and implement these new partnerships.
Often the beginning of a partnership paves the way for how successful the collaboration
will be long-term.

Biomass recycling site to benefit from CHP

23/02/2017

By Tildy Bayar
Features Editor

A wood recycling site in the UK is expected to generate over 1 million ($1.25 million) in
additional revenue after installing new combined heat and power (CHP) technology.
 The Pedigree Power recycling site in
Northamptonshire converts around 25,000 tonnes per year of waste wood
to biomass and includes a 30,000-tonne wastewater processing plant.

The addition of a steam-raising boiler and a 580 kWe genset from Heliex Power will allow
the facility to become energy self-sufficient, providing its own power and heat. Heliex
Power said the 580 kWe system will be twinned with one of its 103 kWe units at the
facility.

The new system will allow Pedigree Power to benefit from enhanced Renewable Heat
Incentives (RHI) and Contract for Difference (CfD) payments.

Chris Armitage (pictured), CEO of Heliex Power, said: Biomass plant operators across
the UK have identified our technology as a simple way of maximizing returns and
boosting sustainability even further, by generating a low-cost supply of electricity in
addition to the heat supplied by their boiler. This is the largest system we have sold to
date, testament to the fact that more businesses and sectors are realizing the potential
of innovative technologies for CHP.

Asia off-grid power demand to drive small hydro growth

18/01/2017

By Tildy Bayar
Features Editor

Small hydropower systems installed worldwide are expected to grow to 146.65 GW by

2023, according to new analysis.
This is up from the current global installed capacity of 119.35 GW, a CAGR of 2.85%. So
says a newly released market report from consultancy Transparency Market Research
(TMR).

Asia will account for the largest growth due to

growing demand for off-grid power in rural areas of India and China. By 2023 the region
is expected to account for almost 60% of the market.

The Middle East and Africa are predicted to see a CAGR of 14.5% during the same period
due to their high untapped hydropower potential and increasing turn to renewable
power sources.

Growth is also expected to be driven by the lack of fuel cost and low capital investment
required for small hydropower installations.

However, the report noted that barriers to adoption are still significant. One such barrier
is fluctuating water flow in rivers and streams due to unfavourable climate conditions
and unpredictable natural disasters.

An example given was Chinas Zhengyixia hydropower station on the banks of the Heihe
River, which has produced high amounts of power between July and October but little or
no power in May, June and November.

In addition, footholds established by significant players in the small hydro market,

including Andritz Hydro, Voith and Alstom, have increased competition and created high
barriers for new market entrants, the report said.

Vattenfall focuses on heat potential

21/02/2017

By Diarmaid Williams
International Digital Editor
Vattenfall is seeking to grow its presence in the German heating market, with district
heat networks in Berlin and Hamburg to the fore in its planning.

Chief Financial Officer Stefan Dohler told Reuters the Swedish state-owned utility
will expand both its heat and wind power operations in the country as it recalibrates
the German business following its departure from coal power last year.

Dohler said it will invest $220 million in Berlin's power grid in 2017, seeking German
retail energy clients who like the green about-turn and can be enlisted online.

"We have a strong position in Germany ... We want to grow here," he said, adding
that this year and next Vattenfall plans to invest $1.2 billion in Germany.

In 2016, "we added 100,000 power customers for the third year in a row and also
won 100,000 gas accounts."

He said 25,000 heat customers were added bringing the customer total in power
and gas to 3.4 million and in heat to 1.7 million.

District heating networks, prominent in Berlin and Hamburg, would be expanded to

transport heat from combined heat and power plants into homes, according to the
CFO, who also said these could ultimately be run on renewable power turned into
hydrogen or synthetic gas.

Surplus heat from Hamburg's metals industry could be stored in the networks in
new business models.

Vattenfall has invested over EUR300m in a cogeneration plant in Berlin providing

mainly heat, which in a first step will replace coal feeds with natural gas.

Self-consumption
In many industrial applications renewable energy generation and self-consumption
is already profitable. One of the key success factors is the load profile of the
industrial application. If it is due to air conditioning or industrial applications similar
to the generation profile of renewable energy this is a first positive indicator. The
second main indicator is the current fuel price. Especially companies that are
located in areas with a high irradiation then should consider building their own pv
installation. Production sites that are located near the coast, might allow for the
construction of cost-efficient wind power plants.
On this page in the near future case studies of self-consumption installation will be
published. The objective is to show what is possible and increase the pressure on
other market players of the same industry.

Have you engineered, installed, or built self-consumption installations? Do you

operate self-consumption installations? Do you want to receive visibility on a
platform that might create future business? Contact us via email ! We would like to
present here your short case study in the near future!

An introduction to THEnergy
Who is behind THEnergy?

Dr. Thomas Hillig Energy Consulting consults organisations renewable energy and e-
mobilty related topics. THEnergy was founded in 2013 and is very experienced in
the renewable energy industry and consulting . Read more about the founder and
his references.

Contact us per email or visit us. Here you find the intinery.
PLATFORM: Renewable Energy on Islands

Small islands have to deal often with very high electricity prices. The fuel, which is
in many cases diesel, is transported on small boats to these islands. Transportation
makes up for a large part of the total electricity costs. Renewable energy is normally
very cost competitive. Solar and wind power plants only need to be transported
once, after that no fuel is required and maintenance requirements are low.
Depending on the effective diesel prices experts estimate that cost reductions of up
to 75% are possible by using renewable energy instead of diesel generators. The
potential of renewable energy on smaller islands is estimated to be far beyond 30
GW.
Small isolated systems allow for learning about our decentralized energy systems of
the future. Solar- and wind-diesel-hybrid-systems can form powerful mini-grids. As
well large utilities such as E.ON, AES and Dong Energy have identified small islands
as a ttarget segment for their future business.
Main elements of the platform "Renewables on Islands"
In the meantime quite a lot renewable energy installations have been built on
smaller islands. However, this will be only the tip of the iceberg (see developments).
The platform covers for more main sections.
 Overview platform "Renewables on
Islands"
Business Models for renewable energy applications on islands
Island off-takers can get involved to different degrees into renewable energies. They
can invest or co-invest into wind or solar power plants. There are several providers
who offer leasing contracts for solar power plants. Finally, island off-takers can buy
electricity through PPAs from renewable plants.
Plant database for renewable energy plants on islands
The plant database displays power plants with the following technologies:
Solar power plants
PV
CPV
CSP
solar thermal
Wind power plants
There are different applications:
wind- or solar-diesel-hybrid-power plants (diesel reduction)
renewable energy power plants with PPAs in a microgrid
plants that deliver process heat (solar thermal)
At this stage neither biomass (or biogas) nor hydro power plants are included. In
addition, cases in which the island is connected by a sea-cable are not included in
the database either.