DTI Demonstration Programmes for emerging energy technologies

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DTI Demonstration Programmes for emerging energy
technologies

• Philip Michael
• Future Energy Solutions

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Barriers to commercial deployment

• Costs still too high
• Lack of information
• Customers
• Other stakeholders
• Technical and commercial risks
• Embryonic industry
• Lack of supply chain
• Regulatory

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Between the research and the market
Competitive option in commercial energy market
Research
Development
Demonstration
Pre-commercial
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Between the research and the market
Risk reduction
Information
Competitive option in commercial energy market
Research
Development
Demonstration
Pre-commercial
Supply and industry chain development
Regulatory issues
Cost reduction
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Package of DTI measures

• Demonstration programmes
• Other support measures
• Targeted research on specific issues
• Regulatory frameworks

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Demonstration Programmes

• Offshore wind capital grant scheme
• Bio-energy capital grant scheme
• Wave and tidal stream energy demonstration scheme
• Low carbon buildings programme
• Clear Skies, Major PV demonstration programme
• Hydrogen, fuel cells and CAT demonstration scheme
  (proposed).

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DTI/Big Lottery offshore wind capital grants
scheme

• Aim
• To stimulate early development of a number of
  offshore wind farms, to
• Deliver an early contribution to the RO and
  emissions reduction.
• Underpin the development of the industry and
  supply chain.
• Provide learning experience, to improve
  confidence and reduce future cost
• Enable future projects to proceed without grant
  support.

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DTI/Big Lottery offshore wind capital grants
scheme

• Grant of 40 (max) of cost
• Most received 10-15
• Maximum of 10M
• Projects also qualify for Climate Change Levy
  Exemption plus ROCs

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Offshore wind capital grant project

• Large projects.
• Focused on project developers.
• Major construction projects.
• Information, risks, cost reduction,
  consenting/leasing.
• Contribution to RE targets.

Photo courtesy of Elsam A/S
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Offshore wind farm capital grants
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DTI/Big Lottery Bio-energy Capital Grants Scheme

• To encourage investment and develop experience of
  a wide range of bioenergy projects.
• 66 million from DTI and National Lottery,
  launched 2002.
• 22 grants offered in first round, 19 currently
  going forward.
• Second round recently announced for biomass heat
  and CHP projects.
• Max. contribution 40 of eligible costs.
• Largest project 18M grant.

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Bio-energy capital grants scheme status
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Bio-energy capital grant schemeBalcas, Northern
Ireland
2.71 MWe 50k tonnes pa wood pellet fuel
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Wilton 10 biomass plant (31MWe) under construction
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DTIs Wave and Tidal Stream Energy Demonstration
Scheme

• New scheme.
• DTI budget of 42M.
• Part of Marine Renewables Deployment Fund. 50M
  budget.

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Wave and tidal stream scheme objectives

• To construct and install a number of early
  grid-connected wave and tidal-stream power
  devices.
• To operate these devices for an extended period.
• To capture key data on the resource, costs
  (construction, installation, commissioning,
  operational and maintenance) and energy
  performance and revenue.
• To produce in a clear, transparent and
  unambiguous report, an economic evaluation of all
  projects supported by the scheme, whilst
  maintaining the confidentiality of commercially
  sensitive information.
• To undertake rigorous and thorough evaluations of
  the environmental advantages and disadvantages of
  the devices supported.
• To stimulate the UK supply chain.

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Key features of the scheme

• Multi-device/small farms.
• UK grid connected.
• Capital grant and revenue support.
• 25 of eligible cost, max. of 5M.
• 100/MWh - reward success.
• Max. of 9M in total share benefits.
• ROCs, LECs, wholesale electricity value.

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DTI Low carbon buildings programme

• New scheme, from 1/4/6, for 3 years.
• Replaces Clear Skies and Major PV Demonstration
  Programme
• 80M funding
• Grants for micro-generation technologies for
  householders, community organisations, schools,
  the public sector and businesses.
• free phone helpline on 0800 915 7722

Pictures from Energy Savings Trust
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Hydrogen, fuel cells CAT demonstration scheme

• Proposed new scheme.
• 50M budget.
• 35M CAT
• 15M H FC
• Taking forward recommendations of
• DTI CAT strategy
• Response to Hydrogen energy strategic framework
• (Subject to State Aid approval)

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Other measures

• Infrastructure
• Targeted RD programmes
• Regulatory

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European Marine Energy Centre

• Wave and tidal stream test centre
• DTI, Carbon Trust, Scottish Executive and HIE
  funding

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Sustainable Energy Distributed Generation

• Imperial College, Manchester University,
  Strathclyde University.
• Research on cost effective integration of DG into
  UK electricity systems.
• Technical and economic performance of
  transmission and active distribution networks,
  devices and systems connected to them.
• Software simulation and/or hardware testing.

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DTI/MOD/CAA wind energy aviations interests

• Wind farms can interfere with radar systems and
  navigational aids for civil as well as military
  ATC and AD radar
• Accelerate the development of appropriate
  solutions for the mitigation of radar
  interference from wind turbines

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Research Advisory Group (RAG)

• 2.5m DTI funding for research into
  environmental impacts of offshore wind farms.
• RAG comprises of the Regulators (DTI, DEFRA and
  DfT) and representatives from two main linked
  research programmes (COWRIE and DTIs SEA
  Programme).
• RAG is chaired and managed by the Electricity
  Development Consents Directorate in the DTI.
• Information on the work of RAG is available on
  the DTI website
• http//www.dti.gov.uk/renewables/renew_rag.htm
• Further 2m allocated for wave tidal stream

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Sustainable Electrical Networks Programme

• Commissions studies into policy, regulation,
  commercial technical issues and standards.
• Fair regulatory and commercial treatment of small
  generators.

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Regulatory

• PPS22 Renewable Energy
• Advice on RE content of Regional Spatial
  Strategies
• Guidance on consenting arrangements in England
  and Wales for pre-commercial demonstration phase
  for wave and tidal stream energy devices.

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End

• Thank you