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Carsphairn Community Energy Storage Scheme

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Carsphairn Community Energy Storage Scheme Carsphairn Community Energy Storage Scheme Feasibility Study Report March 2017 Client Name: Carsphairn Community Council Site Address: Carsphairn Author: Scott Bennett, Assistant Land Agent Ref: 1123716 Ref: 1123716 Document history Author Scott Bennett 15/03/2017 Checked Andy Precious 23/03/2017 Approved Euan Hutchison 27/03/2017 Client Details Contact Sylvia Sinclair Client Name Carsphairn Community Council Address Carsphairn, Dumfries and Galloway, Scotland Issue Date Revision Details A 28/03/2017 Frist Revision NATURAL POWER CONSULTANTS LIMITED, THE NATURAL POWER CONSULTANTS LIMITED, NATURAL POWER SARL, NATURAL POWER CONSULTANTS (IRELAND) LIMITED, NATURAL POWER LLC, NATURAL POWER S.A, NATURAL POWER SERVICES LIMITED AND NATURAL POWER OPERATIONS LIMITED (collectively referred to as “NATURAL POWER”) accept no responsibility or liability for any use which is made of this document other than by the Client for the purpose for which it was originally commissioned and prepared. The Client shall treat all information in the document as confidential. No representation is made regarding the completeness, methodology or current status of any material referred to in this document. All facts and figures are correct at time of print. All rights reserved. VENTOS® is a registered trademark of NATURAL POWER. Melogale™, WindCentre™, ControlCentre™, ForeSite™, vuWind™, WindManager™ and OceanPod™ are trademarks of NATURAL POWER. Copyright © 2017 NATURAL POWER. Local Office: Registered Office: The Green House, Forrest Estate The Natural Power Consultants Limited Dalry, Castle Douglas, DG7 3XS The Green House SCOTLAND, UK Forrest Estate, Dalry, Tel: +44 (0) 1644 430 008 Castle Douglas, Kirkcudbrightshire, DG7 3XS Reg No: SC177881 VAT No: GB 243 6926 48 Ref: 1123716 Contents 1. Introduction ....................................................................................... 1 2. Report Structure ................................................................................ 2 3. Feasibility .......................................................................................... 3 3.1. Why Energy Storage? .............................................................. 3 4. Carsphairn Community Council Aims ............................................... 4 4.1. Agreed Aims............................................................................. 4 4.2. Community Meeting and Survey .............................................. 4 4.2.1. Survey Results ........................................................... 4 5. Central Battery Option ....................................................................... 5 5.1. Central Method......................................................................... 5 5.2. Central Costs ........................................................................... 7 5.3. Central Revenue ...................................................................... 8 5.4. Central Battery Risks ............................................................... 9 5.5. Central Recommendation ........................................................ 9 6. Decentralized .................................................................................. 10 6.1. Decentralized Method ............................................................ 10 6.2. Decentralized Costs ............................................................... 11 6.3. Decentralized Revenue .......................................................... 12 6.4. Decentralized with Solar Panels ............................................ 13 6.5. Decentralized Financial Model ............................................... 14 6.5.1. Financial model inputs assumptions ........................ 14 6.6. Decentralized Risks ............................................................... 16 6.7. Decentralized Recommendation ............................................ 16 7. Next Steps ....................................................................................... 16 8. Grant Application ............................................................................. 16 Appendices ............................................................................................... 18 A. Local Energy Scotland Grant Application 18 B. Residents Letter and Questionnaire 19 C. Ofgem – Feed In Tariff Domestic Solar 20 D. Domestic Financial Models 21 Carsphairn Community Energy Storage Scheme March 2017 Ref: 1123716 1. Introduction With the expected growth of Carsphairn’s community benefits fund, the community council wished to consider potential projects which would bring long term benefits to the community as a whole. This goal was document through the Carsphairn Community Future Plan (March 2016) were Renewable Energy Schemes, Economic Sustainability and Community Ownership were considered priorities by the community. Further to discussions with Natural Power a community meeting was held where the idea of energy storage was introduced. Two options were discussed: Large scale centralised battery to service the community. Decentralised option using new domestic scale battery technology. The community agreed for Natural Power to conduct a feasibility study and prepare a business plan should a project prove favourable. Natural Power identified Local Energy Scotland (LES) funding from the Innovation and Infrastructure fund and an application by Carsphairn Community Council (CCC) was submitted to Local Energy Scotland in August 2016. The grant application was successful and Natural Power where commissioned in September 2016. A copy of the Grant Application Form is located in Appendix A. The objectives and funding outcome are provided below. Grant Funding Objectives; Provide a business plan to the community to achieve community storage scheme. Provide a robust financial model for the community. Provide a legal mechanism to community ownership of storage / solar panel scheme and draft the key legal document/agreement which the community would enter to allow the chosen scheme to be implemented. Establish connections with electricity providers, demand side management and frequency response providers to enable roll out to other communities. Establish connections with supplier of storage / solar panels to enable best value for money to Carsphairn and wider roll out to other communities. Grant Funding Outcome; Provide the survey results from community opinion on a central battery or decentralised battery(s) store. Once the direction with the community council members was confirmed, then more detail work to allow the business plan would be completed and delivered to the community. Identify the wider initial drivers (technical, legal, regulatory) to a central storage and/or individual store within Carsphairn village. Highlighting the risk associated with these scenarios for the community council members. The council members would then make a decision on the direction of the Carsphairn Community Energy Storage Scheme (CCESS). The business plan would; – Provide/draft the key legal documents/agreements which the community would need to enter into to allow the chosen scheme to be implemented in line with the financial model. This would allow the community to consider what legal rights/obligations the community or individual property owners were entering into to achieve the CCESS. – Establish relationships with energy storage, smart meters and solar panel providers to enable best possible price for equipment. The potential for economy of scale for buying and installing storage/solar panels will be a key part of the community scale implementation. – Establish relationships with energy arbitrage, demand management and frequency response service providers to enable similar schemes to be rolled out amongst other communities within Scotland. – Provide a robust financial model for the project which the community to rely on Carsphairn Community Energy Storage Scheme March 2017 1 Ref: 1123716 Establish a project that, if interest dictates, could be rolled out across other communities. Natural Power was required to provide regular feedback on the project progression to Carsphairn Community Council Member & Local Energy Scotland, reporting the outcomes by the 31st March 2017. 2. Report Structure The diagram below provides an overview of the structure of the battery storage project scheme. This feasibility report will be broken down into the five sections, Aims, Method, Cost, Revenue and Financial, as shown in the diagram below. Aims Bring enefit to the whole community Method Decentralized Central Compound Cost House House House Grid Services Revenue Time Shift Tariff Grid Services Financial Model Carsphairn Community Energy Storage Scheme March 2017 2 Ref: 1123716 3. Feasibility 3.1. Why Energy Storage? Energy storage is increasingly being seen as a key component in supporting the electrical network system. The trends in the UK electricity system have resulted in large scale development of wind power, shift towards distributed generation and a changing demand profile. In response the Transmission System Operator (National Grid) and Distribution Network Operators (DNO) are looking towards the flexibility of storage including batteries to help them manage their networks. At a domestic level batteries can be combined with Photovoltaics (PV). To demonstrate how generation and batteries can work together to meet demand, the graph below shows the typical solar generation and demand profile of domestic property. Figure 3.1: Solar generation and Demand profile Solar generation peaks at around
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