NATIONAL AUDIT OFFICE
REPORTBYTHE COMPTROLLERAND AUDITORGENERAL
The RenewableEnergy Research,Development and DemonstrationProgramme
ORDEREDBY THE HOUSEOF COMMONS TO BE PRINTED 20 JANUARY1994
LONDON:HMSO f8.15 NET 156 THE RENEWABLE ENERGY RESEARCH.
This report has been prepared under Section 6 of the National Audit Act 1983 for presentation to the House of Commons in accordance with Section 9 of the Act.
John Bourn National Audit Office Comptroller and Auditor General 14 January 1994
The Comptroller and Auditor General is the head of the National Audit Office employing some 800 staff. He, and the NAO, ace totally independent of Government. He certifies the accounts of all Government departments and a tide range of other public sector bodies: and he has statutory authority to report to Parliament on the economy, efficiency and effectiveness with which departments and other bodies have used their resources. THE RENEWABLE ENERGY RESEARCH, DEVELOPMENT AND DEMONSTRATION PROGRAMME
Contents
Pages Summary and conclusions 1
Part 1: Introduction 5
Part 2: An overview of the direction and management of the programme 9
Part 3: Three case histories: Landfill Gas; Wind and Hot Dry Rocks 16
Glossary 28
Appendices
1. National Audit Office questionnaire sent to participants in the 30 Renewable Energy Field
2. Renewable Energy in the United States of America 33
3. The development of Renewable Energy in Denmark 36 THE RENEWABLE ENERGY RESEARCH, DEVELOPMENT AND DEMONSTRATION PROGRAMME
Summary and conclusions
1 Renewable energy is the term applied to all types of self-replenishing energy sources. An increasing interest is being shown in developing them as a means of creating greater diversity of energy supply by displacing established sources of energy, including fossil fuels, and making environmental gains such as reducing “global warming”.
2 The United Kingdom is well endowed with a number of renewable energy resources. Depending on such factors as future energy prices and technological developments the Renewable Energy Advisory Group estimated that renewable energy could contribute between 5 and 45 per cent of our 1991 electricity supply by around the year 2025. Although they considered that a plausible figure would be around 20 per cent of the 1991 electricity supply figure, this would only be achieved under severe pressures of need and economics. Factors such as environmental constraints could further reduce the contribution.
3 The Government has for a number of years pursued a programme of research, development and demonstration with the objectives of:
. stimulating the full economic exploitation of alternative energy rasourcas in thn United Kingdom;
. establishing and developing options for the future; and
. encouraging United Kingdom industry to develop capabilities for the domestic and export markets.
4 The Government’s current policy is to stimulate the development of new and renewable energy technologies where they have prospects of being economically attractive and environmentally acceptable. The major element of the commercialisation of renewable energy resources is funding provided through Non-Fossil Fuel Orders under the Electricity Act 1989. The National Audit Office examination focussed on the renewable energy research, development and demonstration programme and the fieldwork was well advanced before the Minister’s announcement in July 1993 of further Orders under the Non-Fossil Fuel Obligation. It therefore did not cover in depth issues relating to the Non-Fossil Fuel Obligation which also provides a major source of funding for the nuclear industry.
5 The renewable energy research, development and demonstration programme has cost fZ232 million to date (E340 million in 1992-93 prices), 95 per cent of which is administered by the Energy Technology Support Unit (the Unit) of the United Kingdom Atomic Energy Authority on behalf of the Department of Trade and Industry (the Department).
1 THE RENEWABLE ENERGY RESEARCH, DEVELOPMENT AND DEMONSTRATION PROGRAMME
6 Against this background the National Audit Office examined:
(a) the effectiveness of the Department’s overall approach to meeting their objectives through planning, evaluating and managing their renewable energy research, development and demonstration programme; and
@I] the achievements of the Department’s approach in relation to three specific resources: landfill gas, wind and hot dry rocks.
The National Audit Office’s main findings and conclusions are set out below.
The Department’s 7 Following the Coal Review White Paper (Cm 2235) published in March 1993, the overall approach Government announced their intention to work towards a figure of 1,500 to the programme megawatts of new electricity generating capacity from renewable energy sources for the United Kingdom as a whole by the year 2000. The Government’s main instrument for working towards the 1,500 megawatts figure is Non-Fossil Fuel Orders under the Electricity Act 1989. Consideration is being given to using separate capacity bands for each ofthe main renewable technologies. The National Audit Office would encourage such an approach as it would effectively provide progressive interim objectives and the contribution towards them required f?om the major technologies involved as a means of measuring progress towards the 1,500 megawatts figure [paragraphs 2.2-2.3).
8 There were differences in perception between the 34 respondents to the National Audit Office’s questionnaire and the Department about the effectiveness of the assistance and advice provided by the Department to potential applicants for European Community funded programmes.
9 Officials from the Commission of the European Community said that United Kingdom applicants needed to improve the quality of their applications for funding. However, analysis provided by the Department indicated recent improvements in the quality of funding applications. The National Audit Office acknowledge the extent of support provided by the Department and their recent initiatives to establish a closer relationship with the Commission. For their part the Department accepted the need to build upon the progress they have already made to ensure the effectiveness of applications for funding from the Commission’s programmes [paragraphs 2.9-2.11).
10 The Department faced a considerable challenge in determining priorities between the multiplicity of potential renewable resources and the diversity of technologies involved. It was therefore necessary to develop systematic strategies for allocating the available financial resources. The National Audit Office concluded that the major review undertaken in 1982 which had established the methodology for assessing resources and technologies had been soundly based, despite the unavoidable difficulty encountered in comparing the diverse technologies at different stages of development. The review had provided a useful starting point in determining the priority for funding between the different programmes and technologies, and had established the basis for later assessments of the programme and of the regular reviews of the specific technologies (paragraphs 2.12-2.16).
2 THE RENEWABLE ENERGY RESEARCH, DEVELOPMENT AND DEMONSTRATION PROGRAMMX
11 The programme has always been influenced by the market and main participants. Thus, prior to the 1989 Electricity Act it was strongly influenced by the requirements of the Electricity Generating Boards primarily for large scale developments capable of bulk electricity generation. A third of total available funds had been committed to a relatively small number of projects and technologies, with the remainder of the funds being used to support a variety of other projects across a range of sizes and technologies (paragraphs 2.17-2.18).
12 Projections suggest that there is a significant export potential for many renewable energy technologies. The National Audit Office noted that technologies for key overseas markets - for example, small non-grid connected wind turbines - have generally not been supported. The Department acknowledged that they had not placed emphasis on the fulfilment of the programme’s objective concerning export potential. But they had given support to some renewable energy projects with export potential through other Government programmes, and they believed that the programme’s support to the home market would lead to export opportunities. The Department proposed to address this issue in their forthcoming review, including whether other Government programmes might continue to provide the most appropriate mechanism for assisting certain renewable energy projects (paragraphs 2.19-2.21).
13 A Renewable Energy Advisory Committee had been established to advise the Department on the overall technical and commercial aspects of the programme, and individual committees had been set up for each major area of technology. There was widespread awareness amongst the respondents to the National Audit Office’s questionnaire of the Advisory Committees’ roles, but there was concern about the infrequency which some independent members of committees had changed, which potentially could lead to set opinions being perpetuated to the detriment of new ideas. Although there is often only a limited pool from which available specialists can be appointed, since 1990, the Department have instituted a policy of reviewing the overall composition of each committee to ensure appropriate membership (paragraphs 2.23-2.25).
14 The Unit employs around 250 staff of whom about 100 are directly employed on the technological aspects of the renewable energy programme. Concern was expressed by respondents to the National Audit Office’s questionnaire about the Unit being a part of the United Kingdom Atomic Energy Authority and the possibility of conflict between their various functions, some of which respondents considered unclear. The National Audit Office concluded that the Department should consider further extending their efforts in making more public the Unit’s responsibilities (paragraphs 2.26-2.28).
The Department’s 18 The National Audit Office reviewed the Department’s approach to three specific approach to three renewable energy resources - landfill gas, wind and hot dry rocks. These have specific resources jointly accounted for over 40 per cent of the programme’s total expenditure (paragraph 3.1).
16 The United Kingdom is the second highest generator of power from landfill gas in the World. The National Audit Office concluded that the benefits gained from the Department’s adoption of a logical course of investigation, experimentation and
3 THE RENEWABLE ENERGY RESEARCH, DEVELOPMENT AND DEMONSTRATION PROGRAMME
application had stimulated commercial interest and this had been successfully complemented by the international co-operation activities undertaken by the Department (paragraphs 3.2-3.16).
17 The abundance of the United Kingdom’s available wind resources justified the Department’s decision to devote over a fifth of the programme’s total expenditure to this area of research. Prior to 1987, a high proportion of these funds had been spent on technologies such as large scale wind turbines and vertical axis machines, reflecting the requirements of the pre-privatised electricity supply industry. These provided useful technological spin-off but had only a limited impact on the commercial development of wind energy in the United Kingdom. Commercial developers have based their wind farms on medium-sized (typically 300 to 400 kilowatts) machines. The programme had concentrated on these since 1987.
18 In contrast with the Danish and American manufacturers’ dominance of their domestic markets, the majority of installed capacity of wind generated electricity in the United Kingdom was of imported origin. The Department have more recently given support to United Kingdom manufacturers through funding from the Non-Fossil Fuel Obligation. Although the Department have always encouraged industry to develop commercial capabilities for the domestic market, for the reason identified in paragraph 11 the programme prior to 1987 placed emphasis on the development of large machines which are not used by today’s market (paragraphs 3.17-3.27).
19 The hot dry rocks research programme, at a cost of some E42 million, primarily involved exploring the potential for geothermal energy from Cornish granite. The Department sensibly sought to prove the technology in stages, reviewing progress before proceeding further. However, the programme involved a high degree of technical uncertainty and practical difficulties and, following a review in 1990, was redefined as a “long shot”. The Department then closed the United Kingdom’s programme but initiated, at a cost of S3.3 million, a collaboration phase with a European programme then under way. This allowed exploitation of the United Kingdom’s expertise in a European context and a further transfer of technology to industry before the Department announced in July 1993 the closure of its hot dry rocks programme by 31 March 1994 (paragraphs 3.28-3.48).
Overall conclusion 20 The National Audit Office concluded that the Department’s methodology for assessingdifferent renewable energy sources, established as part of the 1982 review (paragraph lo), is soundly based, and provides a useful starting point in determining the priority for funding between different programmes and technologies. The use of sensitivity analysis to incorporate the implications of conventional energy prices is also well done.
21 However, the earlier influence of the main customers for the renewable energy research, development and demonstration programmes, at that time the nationalised electricity industry, led to a few projects and programmes receiving a large share of the E340 million spent (in 1992-93 prices). The programme had also not provided sufficient support for projects aimed at the export market, although this is one of the stated objectives of the programme. On the basis of the technologies reviewed, the National Audit Office concluded that there were benefits from close collaboration with industry, supplemented by relevant international co-operation.
4 THE RENEWABLE ENERGY RESEARCH, DEVELOPMENT AND DEMONSTRATION PROGRAMME
Part 1: Introduction
1.1 Renewable Energy is the term used to describe range is unlikely to be achieved and a more those forms of energy which occur naturally plausible figure of what is possible would be and repeatedly in the environment energy around 20 per cent of the 1991 electricity from the sun, the wind and the oceans, and supply. Even this figure would only be from plants and the fall of water. The heat from achieved under severe pressures of need and within the Earth itself, geothermal energy, is economics and factors such as environmental widely defined as renewable energy even constraints could further reduce the though its continuous extraction cannot be contribution from renewable energy resources. sustained at one location. Energy produced from wastes is also regarded as being 1.5 The Government has pursued a programme of renewable. research and development into renewable energy since the mid-1970s and in 1988 1.2 The case for developing renewable energy published Energy Paper 55 which revised the resources has been strengthened by objectives of the overall programme to: environmental concerns. In particular, those over “global warming” led delegates, including . stimulate the full economic exploitation of those of the United Kingdom, to sign a alternative energy resources in the United Convention on Climate Change at the United Kingdom; Nations Conference on the Environment and Development [“Earth Summit”] in June 1992 at . establish and develop options for the Rio de Janeiro. Under the Convention there is a future; and commitment by signatories to reduce their countries’ emissions of carbon dioxide and . encourage United Kingdom industry to other greenhouse gases to 1990 levels by the develop capabilities for the domestic and year 2000. export markets.
1.3 The United Kingdom has rich resources of The key stages in the development of the fossil fuels but relatively poor resources for Government’s strategy for renewable energy are hydra-electricity, the traditional scwce of shown in Figure 1 overleaf. renewable power. Installed capacity from renewable resources is therefore low: 1.6 Following the publication of the Report of the approximately 2 per cent of current electricity Renewable Energy Advisory Group [Energy generating capacity is from renewable Paper 60) and the Coal Review White Paper resources of which 80 per cent is from hydm (Cm 22351, the Minister for Energy stated in technology. July 1993 that the Government’s policy is to stimulate the development of new and 1.4 The United Kingdom is, however, well renewable energy technologies where they endowed with a number of other as yet have prospects of being economically attractive untapped renewable energy rt?sources. The and environmentally acceptable in order to Renewable Energy Advisory Group, which was contribute to: appointed to review the Government’s strategy for renewable energy technologies, estimated l diverse, secure and sustainable energy that renewables could contribute between 5 supplies; and 45 per cent of the 1991 electricity supply by the year 2025. Such a wide range is a . reductions in the emission of pollutants; reflection of the difficulty in estimating the and speed of technological and economical development of renewable energy resources, . encouragement of internationally including predicting the price of future fossil competitive renewable industries. fuel energy. The Renewable Energy Advisory Group indicated that the upper part of the
5 THE RENEWAELE ENERGY RESEARCH, DEVELOPMENT AND DEM”NSTtW’I’I”N P’KOGKAMME
Figure 1: Key stages in the development of the Government’s Strategy for Renewable Energy
PHASE1: Mid-1970slo mid-1930s
Overall aim: to identify and assessappropriate technologies
Specific objectives: to determinefor eachtechnology: s technicalfeasibility in UnitedKingdom conditions:
l natureand size of the UnitedKingdom resource: a environmentimpediments;
l likely cost of the technologywhen developed; s first estimateof its possiblecontribution to energy creation30 years hence.
PHASE2: Mid-19SSsto early 1990s
Overall aim: to develop.in collaborationwith industry.those technologieswith commercialprospects
Specific objectives: to encourageand promotethe commercialisationof economicallyattractive technologies. to reduceuncertainty in the economicsand potentialof ‘promising but uncertain’technologies. to developtechnologies by improvingtechnical performanceand reducingcapital costs.
PHASE3: Early 1990sto late 1999s
(Thestrategy for this Phaseis currently being revised in light of the Minister’sannouncement in July 1993.)
Overall aim: to demonstratethose technologieswhich continueto show commercialpromise, transler the technicalknowledge to manufacturingindustry and potential usersand. where appropriate,transfer the responsibilityfor the future to them.
Specific objectives: to constructdemonstration plants. to obtain commercialand industrialsupport to introduceeffective technology transfer processes.
Source: EnergyPaper 5.5 of 1988. Figure1 showsthe key stases in the Government’sstrategy for thedevelopment of renewableenergy since the mid-1970s
The Minister also stated that he expected to 1.8 The development of electricity generating publish a further strategy document. renewables has been greatly encouraged by the introduction of the Non-Fossil Fuel Obligation 1.7 Expenditure to date on the programme by the in the 1989 Electricity Act. This created a former Department of Energy, whose guaranteed market and a premium price and responsibilities have now been transferred to provided a positive financial incentive for the the Department, is shown in Table 1 opposite. exploitation of renewable sources of energy.
6 THE RENEWABLE ENERGY RESEARCH, DEVELOPMENT AND DEMONSTRATION PROGRAMME
Table 1: Deparlr tal expenditure o lenewable Energy Figure 2: The main features of the National Audit Ollice’s examination Year Expenditure Expenditurein fm 1992-93 prices * A questionnairewas sent to 53 UnitedKingdom landfill gas palticipants in the renewable sites generatingelectricity; one fin energy industry including operationalwind farm and 1975-76 0.5 2.0 manufacturers,Regional another underconstruction; 1976.77 1.0 3.5 ElectricityCompanies, and the hot dry racks site run commercialand academic by the CamborneSchool of 1977-78 2.5 7.8 researchersand trade Mines were visited to gain first 1978-79 3.6 10.2 associations. hand experienceof the practical issuesaffecting the 1979-80 8.2 19.6 technologiesconcerned. 1980.81 11.3 23.0 * Follow-upinterviews were Discussionswere held with 1981-82 17.3 32.1 conductedwith some of the 34 staff, and key reporis and files 1982.83 14.7 25.4 patticipants respondingto the reviewedof the Energy questionnaire. TechnologySupport Unit and 1983-84 11.7 19.1 the Depaltment. 1984-85 14.9 23.0 . Forthe purposeof Two specialistsfrom the Open 1985-86 13.2 19.4 comparison,visits were made University(Dr D Elliott and Mr 1988-87 12.0 17.2 to the UnitedStates of Americi A Clarke)provided technical and Denmark two countriesat 1987-88 16.3 22.2 cansultancyassistance. the forefront of renewable 1966-89 16.0 20.3 energy development. 1989-90 17.9 21.2 a Meetingswere held with 1990-91 20.8 22.7 officialsof the Commissionof 1991.92 24.8 25.7 the EuropeanCommunity to discussthe Commission’s 1992-93 25.6 26.6 programmesand the United Total 232.3 340.2 Kingdom’spariicipation in them. Source:Expenditure from Departmentof Tradeand Industry; 1992-93 wfces using GDPdeflator (CSOMonthly Dioest of Statistics). Source: NationalAudit Offfe. The Table showsthe growth of annualGovernment expenditure on Figure2 describesthe main featuresof the NationalAudit Office’s renewable energy.Analysis of expenditurelevels on a constant price examination. basis shows considerablefluctuations in the amountsallocated to the oroaramme.with 1981-82reuresentino the hiohest level of exoenditure.
Scope of the National Audit Office 1.10 The National Audit Office also sought to examination examine the extent to which the Department has successfully promoted the commercial 1.9 Against this background the National Audit exploitation of the United Kingdom’s Office examined: renewable energy resources through its research, development and demonstration programme. However, much of the l the effectiveness of the Department’s Department’s technological transfer and overall approach to meeting their commercialisation programme began only in objectives through planning, evaluating 1991 and thus it is too early to draw and managing its renewable energy conclusions on the effectiveness of these research, development and demonstration programmes. programme (Part 2); and 1.11 The fieldwork for the National Audit Office’s . the achievements of the Department’s examination of the renewable energy research, approach in relation to three specific development and demonstration programme resources: landfill gas, wind and hot dry was well advanced before the Minister’s rocks [Part 3). Statement in July 1993 (paragraph 1.6) in which he also announced his intention to The main features of the National Audit Office make a third and further orders under the examination are set out in Figure 2.
7 THE RENEWABLE ENERGY RESEARCH, DEVELOPMENT AND DEMONSTRATION PROGRAMME
Non-Fossil Fuel Obligation. The National Audit Office Examination did not cover in depth issues relating to the Non-Fossil Fuel Obligation which also provides a major source of funding for the nuclear industry. However, references to the Non-Fossil Fuel Obligation are made. where appropriate, in recognition that it has become the main driving force towards the commercialisation of renewable energy. THE RENEWABLE ENERGY RESEARCH, DEVELOPMENT AND DEMONSTRATION PROGRAMME
Part 2: An overview of the direction and management of the programme
2.1 In setting up and managing the renewable consider separate bands of new capacity energy research, development and within the Order for each of the main demonstration programme the then renewable technologies. The National Audit Department of Energy was faced with the Office acknowledge that if future Non-Fossil challenge of determining priorities between a Fuel Orders were so structured they would multiplicity of potential resources and a effectively provide the interim objectives diversity of technologies all at different stages necessary to give a useful measure of the of maturity. The National Audit Office achievement made against the 1,500 megawatts examined their approach and matched their figure. success against the stated objectives and aims set for the programme (paragraph 1.5). Progress towards increasing installed capacity Installed capacity for renewable energy generation 2.4 Within the United Kingdom there was little demand for energy from new renewable 2.2 Until 1990 no figures were set for the sources until the advent of the Non-Fossil Fuel generation of energy from renewable sources. Obligation in 1990. In the first Order, Following the publication of the 1990 White announced in October 1990,75 renewable Paper on the Environment (Cm 1200), the schemes were approved with declared net Government indicated that it would work capacity of 151.8 megawatts. In the second towards a figure of 1,000 megawatts of new Order, in November 1991, a further 122 generating capacity by the year 2000. In their projects were approved with an aggregate Fourth Report, Session 1991-92, the Energy declared net capacity of 457.5 megawatts. The Select Committee proposed a non-time specific premium prices for these Orders were target of between 3,000 and 4,000 megawatts of guaranteed until 1998; a time restriction was new electricity generating capacity from required by the Commission of the European renewables. And more recently the Renewable Community as part of their approval for this Energy Advisory Group recommended a figure subsidy. Figures 3 and 4 overleaf give a of 1,500 megawatts Declared Net Capacity by breakdown of the schemes approved under the the year 2000 for the United Kingdom as a first two Orders. The intention for the Third whole. The Government noted this Order is that it will guarantee premium prices recommendation in the conclusion of its Coal from November 1994 for up to 15 years. Review in March 1993 [Cm 2235) and stated that it intends to work towards this figure of 1,500 megawatts of new electricity generating Funding capacity from renewable energy sources for the United Kingdom as a whole by the year 2000. 2.5 Overall Departmental expenditure on renewable energy was set out in Table 1 2.3 The Department told the National Audit Office (paragraph 1.7). Allocation of funding between that the Government’s main instrument for the main elements of the Department’s working towards the figure of 1,500 megawatts programme is illustrated in Figure 5 overleaf. was the making of Non-Fossil Fuel Orders This Figure illustrates the fluctuations in the under the Electricity Act 1989, which requires level of expenditure on the various electricity suppliers to purchase a certain level technologies as a result of changes in the of non-fossil fuel soured electricity. Similar Department’s priorities and timing of funding measures apply in Scotland and Northern to major projects within each of the Ireland. In his recent announcement of a Third technologies. Also, in 1992.93,~ per cent of Order, the Minister stated that he would
9 THE RENEWABLE ENERGY RESEARCH, DEVELOPMENT AND DEMONSTRATION PROGRAMME
Figure 3: Renewable energy projects supported by Figure 4: Renewable energy projects supported by the first order under the non-fossil fuel the second order under the non-fossil fuel obligation (1989) obligation (1991)
Numberof Projects
Declared Net Capacity (M~QwKIIIs) DeclaredNet Capacity(M~Q.?wOS)
Source: Energy TechnologySuppoti Unit Source: Energy TechnologySupport Unit Figures3 and 4 illustratea considerablegrowth in the number of total expenditure was devoted to research, wind schemesSupported between the first and secondOrders development and demonstration projects for underthe Non Fossilfuel Obligationand a continuinginterest in specific technologies. The remaining 23 per landfill Qasschemes. although waste combustionprovides the cent was spent on marketing, promotion and largestelement of renewablegeneration under the Non-Fossil FuelObliaation. commercialisation.
expenditure.Analysis showed that funding Non-Departmental funding from non-Departmental sources had not grown as originally expected (Figure 6). 2.6 In line with their aims, the Department had sought funding from non-Departmental sources 2.7 The Department told the National Audit Office to complement their own - primarily from that the establishment of the Non-Fossil Fuel industry and the Commission of the European Obligation and the privatisation of the Community. Up until 1986 the Department had electricity supply industry under the 1989 expected and gained between f2 and f3 Electricity Act had significantly affected the million a year. Thereafter the general prediction of external contributions to the indication of the level of such support to fulfil research, development and demonstration the programme was set out in the Department’s programme. External funding previously 1988 Energy Paper Number 55. In this they expected as part of the programme was now assumed that contributions would rise provided as part of the Non-Fossil Fuel significantly and eventually exceed their own Obligation supported projects and, subsequently, new non-Departmental funding
10 THE RENmvAEiLE ENERGY RESEARCH, DEVELOPMENT AND DEMONSTRATION PROGRAMME
Figure 5: Allocation of funding between technologies
0 ,978 ,979 ,980 ,991 ,982 ,983 1984 1985 1986 1987 1988 1989 1990 1991 1992 Total -79 -80 -81 -82 -83 -84 -05 -86 -87 -88 -89 -90 -91 -92 -93 YW
Wind wave Geothermal Solar Biomass Tidal MarketinQ& ETSU Other Promotion Management
Source: Departmentof Tradeand Indusby Notes: 1. Biomassincludes Renewable Energy research and developmentfunds and EnergyEfficiency funds 2. Geothermalincludes Aquifers and Hot DIJJRocks 3. Otherincludes hydra strategic studiesand fuel cells Figure5 shows the fluctuationsin the level of expenditureon the various technologiesdue to changesin the Department’spriorities and timing of major project funding over the life of the Research,Development and DemonstrationProgramme
Figure 6: Funding from non-Departmental sources
fm
EP55 \,/,/-~ 20 -
,_-- __-I __-- __-- __-- __-- __.- IO __-- ___--- _,nnua’bYL ______--- ___--- ___--- Realised
1989-90 1990-91 1991-92 1992-93 FinancialYears
Source: Departmentof Tradeand /ndusby Figure6 showsthe estimatedannual external contributionsto the Research,Development and Demonstrationprogramme anticipated in the 1986 Energy Paper55 and, following the impact of the 1989 ElectricityAct, the subsequentlyset annualtargets and realisedcontributions (excluding external contributionsfor Non-FossilFuel Obligation funded projects).
11 THE RENEWABLE ENERGY RESEARCH, DEVELOPMENT AND DEMONSTRATION PKXXAMME
targets were set annually and largely achieved. . the United Kingdom’s programmes were A reexamination of non-Departmental not integrated with those of the European contributions, taking into account the impact Community. of the Non-Fossil Fuel Obligation, is expected to form part of the new strategy for renewable 2.10 / Officials from the Commission also indicated energy. their concerns to the National Audit Office over the quality of applications for funding from the United Kingdom, and the need for The European Community more initiative from United Kingdom applicants to foster a constructive dialogue 2.8 The United Kingdom’s programme has with the Community officials. However, benefited from extensive international analysis provided by the Department to the collaboration, including participation in the National Audit Office indicated that there had International Energy Agency Programmes and, been an improvement in the quality of United more significantly, those of the European Kingdom funding proposals since 1991. Community. The Commission of the European Community run two major programmes which 2.11 The Department provide help and advice to provide support for the development of potential applicants through the use of mailing renewable energy technologies: lists for calls for proposals and significant developments; a central registration and
l JOULE is a research and development despatch service for proposal forms; programme covering all non-nuclear information seminars associated with calls for energy technologies, including renewable proposals: a permanently available expert; and energy technologies: and support from the Unit’s experts and Ilepartmnntal staff tn provide more general . THERMIE is a demonstration programme advice and assistance. To this end which promotes projects designed to Departmental staff have, over the past two advance, implement and/or promote years, made considerable efforts to forge closer innovative energy technologies. An personal contacts with Commission staff and important element of the programme are have sought to co-ordinate Commission and measures to disseminate successfully domestic programmes to the greatest extent demonstrated technology. This includes possible given the differences in policy the establishment of 40 information offices objectives. Whilst acknowledging these throughout the European Community. initiatives, the National Audit Office noted that the Department accepted the need to build 2.9 Satisfaction was expressed by some upon the progress they have made in ensuring respondents to the National Audit Office’s the effectiveness of United Kingdom questionnaire about European Community applications for funding from the funding. The Wind Energy Group Limited said Commission’s programmes. that they were, at that time, satisfied with the level of support they have received from the THERMI! programmeand were currently Evaluation of options being considered for a significant grant from JOULE. The Central Electricity Generating 2.12 Faced with the conflicting priorities between Board too had received grants in support of a technologies [paragraph 2.1) it was important one megawatt wind turbine at Richborough in that the Department devised a systematic Kent constructed by the Howden Group plc. process for deciding where to concentrate their But it was the perception of some respondents resources. In 1982, the Advisory Council on to the National Audit Office questionnaire that: Research and Development for fuel and power carried out a major review of the technologies the attention given to European which established the methodology by which Community funded schemes was too low their potential and cost could be evaluated. and other countries gave greater help and Subsequently the Department updated the advice to potential applicants: 1982 assessments using the ?.ame methodologies in a 1986 appraisal of the a more pro-active approach was needed: programme. Reports of economic and technical and prospects for specific technologies were also
12 THE RENEWABLE ENERGY RESEARCH, DEVELOPMENT AND DEMONSTRATION PROGRAMME
produced on a regular basis. The results of this 2.16 Despite this difficulty the National Audit subsequent work was included in the Office concluded that the 1982 review was a Department’s 1988 Energy Paper 55 which useful starting point in determining the provided a revised overview of the economic priority for funding between the different prospects of all technologies. This Paper is programmes and technologies. now due to be updated as part of the further strategy document (paragraph 1.6). Influence of potential users 2.13 The 1982 Review was a crucial decision-point in the Department’s programme with the 2.17 Until 1989 the Department’s programmes were potential contribution for each technology influenced by the requirements of the being assessedup to the year 2000 against a Electricity Generating Boards, in particular the range of assumptions of future energy prices, Central Electricity Generating Board, who were and future generating costs calculated using mostly interested in developments capable of the then accepted discount rate of five per cent. bulk energy generation. The programme therefore included some larger scale 2.14 As a result of this review technologies were developments such as large wind turbines classified as follows: (paragraphs 3.19-3.201. By their nature such developments were bound to be costly. Strongly placed: on-shore wind, tidal; 2.18 Hot dry rocks, Severn and Mersey barrages, Economically good: passive solar, aquifers, and large and vertical axis wind turbines alone some biofuels, micro-hydro; accounted for a third of the total available funds. However, the remainder of the funds Promising: off-shore wind, hot dry were used to support a variety of other projects rocks, other biofuels; across a range of sizes and technologies.
Long shots: wave, active solar. Exports Based on this categorisation, the decision was taken to abandon further development work on 2.19 Worldwide the market for renewable energy is off-shore wave and wind power, active solar expanding considerably, particularly in the and biofuel thermal processing. United States of America and the Third World. The European Community estimated that, in 2.15 The National Audit Office examined the 1990, tbe total world market for renewable validity of the methodology established by the energy equipment amounted to f31 billion. 1982 Review, and used in subsequent reviews, Thus there should be significant export and concluded that in general the approach potential in many renewable energy was soundly based and the use of sensitivity technologies, particularly those related to analysis to incorporate the implications of power from: photovoltaics, wind, small scale changes in conventional energy prices was hydra and biofuels. Although statistics on the well done. They considered, however, that an export of renewable technologies are not unavoidable difficulty of the analysis was that readily available, information on export it sought to compare diverse technologies at markets will be necessary if such markets are different stages of development. Thus to be exploited by United Kingdom industry in estimates for less well-developed technologies line with the Renewable Energy Advisory were likely to be more uncertain, leading to a Group’s conclusions that there is considerable wider range of cost estimates, and inevitably potential for expanding industry’s share of the resulted in a greater uncertainty in their world market. classification. The reviewers acknowledged that their methodology could only give a 2.20 Although developing export potential is “rough guide to the ranking of investments” in included in the third of the objectives of the circumstances where it was difficult to research, development and demonstration compare like with like. programme, the Department told the National Audit Office that the main thrust of the programme had been towards developing technologies for the domestic market. Thus
13 THE RENEWABLE ENERGY RESEARCH, DEVELOPMINX AND DEMONSTRATION PROGRAMME
technologies for key new overseas markets, for . to advise on the merits, relative priorities example, for small non-grid connected wind and value for money of the proposed turbines have generally not been supported. In projects within the programme that may be its response to the National Audit Office’s put before it; and questionnaire the British Wind Energy Association, a professional body of individuals . to give advice on such other matters as representing the various interests of the wind may be required. energy community, commented that there was limited help with overseas marketing incentive Membership of the Committee comprises schemes. They also observed that there seemed independent representatives as well as to be little research and development support Government officials. Additionally, similar being given in the area of appropriate wind committees have been established for each energy technology for developing countries. major technology. The National Audit Office concluded that the Department had not placed emphasis on 2.24 The advisory groups are influential in deciding ensuring that they are fulfilling the which projects should be approved and make programme’s objectives concerning the export recommendations about the general direction potential of renewable energy technology. The of the programme as it relates to their area of Department acknowledge that priority had technology. Ad hoc reviews of progress by been given to meeting the needs of the specialists may also be undertaken. The domestic market. outcome of each project approved by the Advisory Committee is published so that 2.21 However, the Department informed the information can be made available to the wider National Audit Office that a number of other community. Government programmes such as the Small Firms Merit Award for Research and 2.25 Replies to the National Audit Office’s Technology (SMART) and Support for Product questionnaire (Appendix 11 revealed that there Under Research (SPUR) had assisted some was widespread awareness of the existence renewable energy projects with export and role of the advisory committees. Over half potential. Other Government programmes of the organisations who responded to the might continue to provide the most questionnaire had been in contact with the appropriate funding mechanism for certain Committees. However, there was concern that renewables projects even following the a number of the independent members of the forthcoming review. The Department also told Committees had changed relatively the National Audit Office that they believed infrequently. In an environment of rapidly that the support offered by the programme for developing technologies, this could lead to set home markets would also lead to export opinions being perpetuated to the detriment of opportunities. new ideas. Although there is only a limited pool of available specialists, the Department have since 1990 instituted a regular review of The management of the programme the overall composition of each committee to ensure that the membership is appropriate to 2.22 The National Audit Office considered whether the issues of importance for the programme the management arrangements for the research, area and to take advantage of the wider range development and demonstration programme of experience available. were effective in maximising the output from it. The Energy Technology Support Unit Advise y Committees 2.26 The day-to-day management of the programme z..z~ The Department established the Renewable is undertaken by the Unit which are a Energy Advisory Committee whose terms of self-contained business unit within the Atomic reference included: Energy Authority’s Industrial Business Group. The Unit also carry out work for other . to advise on the aims, content and Government departments; the Commission of economic applicability of the Department’s the European Community and the International research, development and demonstration Energy Agency. The Unit employ around 250 programme on renewable energy: staff, of whom about 100 are directly employed on renewable energy work (others deal with
14 THE RENEWABLE ENERGY RESEARCH. DEVELOPMENT AND DEMONSTRATION PROGRAMME
energy efficiency or provide support services 2.28 Some submissions to the Renewable Energy such as contracts, finance or administration). Advisory Group expressed concern that the The Department informed the National Audit Unit might not be sufficiently independent of Office that the cost of the Unit’s project the nuclear industry. Responses to the National management service had remained relatively Audit Office’s questionnaire also indicated that constant at around 12 per cent of external in the respondents perception there was a lack contractor spend. of clarity in the Unit’s precise function: they referred to the various roles of the Unit as a 2.27 Each year the Department set out a detailed Departmental agent; European Community work programme for the Unit, including key Information Office; and, as part of the United performance targets, and output is monitored Kingdom Atomic Energy Authority business, a against these targets via monthly management consultancy service. The National Audit Office information reports and quarterly progress concluded that the Department should meetings. The National Audit Office noted that consider further efforts towards making more as well as targets that concentrated on the public the Unit’s role and responsibilities. number of intermediate outputs from the programme, the Department had also established an “efficiency factor” formula with the 1Jnit on their contracted daily rates charged.
15 THE RENEWABLE ENERGY RESEARCH, DEVELOPMENT AND DEMONSTRATlON PROGRAMME
Part 3: Three case histories: Landfill Gas; Wind and Hot Dry Rocks
3.1 In order to assess further the success achieved Table 2: Expenditure on Landfill Gas Programme by the Department in meeting their objectives from the Department’s Renewable Energy and aims for the research, development and Research, Develooment and Demonstration demonstration programme the National Audit PI ramme Office reviewed three resources in greater depth: landfill gas, wind and hot dry rocks. In Research& Total Development each case the technologies are at differing stages of development, they have varying fmo f’000 PO00 degrees of potential and together they up to 1979-80 1.7 nil 1.7 represent a cross-section of the programme 1980-81 13.3 nil 13.3 experience to date. Over 40 per cent of the expenditure on the research, development and 1981-82 60.5 nil 60.5 demonstration programme has been spent on 1982-83 6.8 8.9 15.7 them. 1983-64 nil 65.4 65.4
1984-65 3.3 8.4 11.7 Landfill Gas 1965-86 1.5 12.6 14.1
3.2 The term “biofuels” covers a number of 1986-87 123.0 151.7 274.7 technologies that involve the use of a range of biological materials, such as organic waste, 1987-88 125.5 666.7 792.2 plants and trees, as fuel. The National Audit 1988-69 649.4 150.1 799.5 Office concentrated its examination on one aspect of the biofuels programmes: energy 1989-90 287.3 53.0 340.3 derived from municipal solid waste in the form 1990.91 420.2 96.3 516.5 of landfill gas. Expenditure on this part of the Department’s research, development and 1991.92 681.0 nil 661.0 demonstration programme is set out in Table 2. 1992-93 415.4 10.0 425.4
3.3 The Department estimate that in the United Total 1 2,788.9 1,223.i 1,012.o Kingdom 25 million tonnes of domestic waste Source: Energy TechnologySupport Unit and an equal amount of industrial and _. commercial waste are generated each year. At NOE lne expenbmre snown above mludes funds from the renewableenergy programme and present around 90 per cent of this is deposited Depaftment’s funds from the EnergyEfficiency Demonstration Scheme. in landfills. Organic wastes in landfills decay Both elementsof the Department’sprogramme were and produce a mixture of predominantly managedby the Energy TechnologySupport Unit as methane and carbon dioxide, which is known part of their landfilfgas pmgram,,,e. as landfill gas, and organically rich leachate. The Table showsthe total Departmentalexpenditure on the Landfill sites can give rise to a number of landfill gas programme.It illustrateshow expenditurehas grown potential environmental hazards through since the late 1980sfollowing the successfuldemonstration uncontrolled migration of methane gas horn p~OgMilRl~. the site which is not only a potential “greenhouse gas” but can lead to odour The United Kingdom Programme nuisance, vegetation dieback, fire and even explosions and asphyxia. Thus the control of 3.4 It was recognised in the mid to late 1970s that landfill gas is a priority of waste disposal once gas emissions from landfills were operators. controlled, the gas could be used to produce heat, for example to fire kilns or boilers, or to generate electricity. This involved the use of
16 THE RENEWABLEENERGY RESEARCH, DEVELOPMENTAND IJEMONSTRATlONPROGRAMME
relatively simple, well understood technology major shift in emphasis towards researching and required little original research work. The and developing gas optimisation and first experiments to harness landfill gas as a enhancement techniques followed, designed to fuel began in 1979 through a joint venture enable greater yields of gas from large landfills. between the Department and the London Brick The Department’s strategy was divided into Company at Stewartby in Bedfordshire, in two elements: which the gas produced was used to fire kilns in an adjacent brick factory. . research into how to improve the yield from landfills; and 3.5 The successful completion of this project demonstrated the potential of the technology . investigation of the effect of landfill and led to a series of further demonstration management on the microbiology of the schemes designed to show various ways the site. gas could be used. These were agreed as part of a strategy paper produced in 1983 and were The ultimate goal of the programme was the undertaken over the next seven years. Eight creation of landfills designed to optimise gas different landfill site operators were involved production, and a key element of the in the schemes which were jointly funded programme was an experiment, which is still through the Department’s Energy Efficiency in progress, examining various test cells to Office’s Demonstration and Best Practice determine how to maximise yield from a programmes and by the firms concerned. landfill site. Generally the Department awarded a grant of up to 25 per cent of the cost of these schemes 3.8 The Department’s detailed research and while at least 75 per cent was funded by the development programmes were divided into firm involved. The exact level of grant awarded four areas: resource and marketing studies; depended on the Department’s perception of technology development; gas optimisation: and the benefits of the schemes to their research, basic microbiology. The National Audit Office development and demonstration programme. concluded that the Department had adopted a logical course of investigation, 3.6 The first demonstration programmes used the experimentation and application which has gas directly to produce heat in kilns, furnaces resulted in increased interest within the or boilers. However, it was recognised that the industry to exploit the potential of landfill gas. extent of such markets near to landfill sites was limited and so, following the 1983 Electricity International co-operation Act which allowed independent generators to sell electricity to Area Electricity Boards for the 3.9 The Department sought to stimulate interest in first time, attention was directed to electricity the technology by holding international generation. A number of projects were conferences on the subject in 1986,1988 and supported to demonstrate the feasibility and 1990. These conferences provided the cost effectiveness of generating electricity opportunity to promote the benefits of the using a number of types of engine. Expenditure technology to industry by highlighting peaked in 1987-88 at f666,000, out of total successes in the Department’s programme and expenditure on demonstration schemes of f1.2 enabled the United Kingdom to compare million (Table 2). progress with developments in other countries.
3.7 In addition to the demonstration programme 3.10 Since 1985 the Department have participated the Department prepared a strategy for pure in the International Energy Agency’s bioenergy research and development into the biological programme. The Unit have chaired the aspects of the technology designed to develop International Energy Agency’s Bioenergy a better understanding of the mechanisms Executive Committee since 1991. The involved in producing landfill gas. This was Department have kept up to date with work in updated in 1985 to take account of the other 14 countries involved in the technological and market developments, which programme through participation in had revealed that gas yields were at least workshops and joint programmes, where double earlier estimates. Increasing United Kingdom contractors and the Unit have environmental pressures and the implications direct involvement in collaborative projects. of the 1983 Electricity Act led to greater This has enabled them to gain first hand emphasis on the production of electricity. A experience of research work carried out THE RENEWABLE ENERGY RESEARCH, DEVELOPMENT AND fmvfONSTRATION PROGRAMME
overseas. These programmes have generally 3.14 The development of landfill gas has clearly complemented the Department’s own and been one of the successes of the Department’s provide a good opportunity to share the costs research, development and demonstration of research. programme. Although changes to waste disposal practices are likely to affect the 3.11 There is also an agreement between the United amount of waste going to landfill, existing Kingdom, the United States, Sweden and landfill will generate landfill gas for 15-20 Denmark to share data on landfill gas test cells. years. New landfills are likely to be larger but This has provided useful information to more remote leading to increased support this element of the Department’s transportation costs for waste. Increased programme. Similar data bases exist for other environmental controls will also result in high areas of the biofoel programme. Overall, the costs of landfilling which will in turn lead to participation in the International Energy alternative methods of waste disposal being Agency’s programme, which includes landfill used. The Government’s target set out in the gas technologies, has provided valuable “This Common Inheritance” White Paper in information and the opportunity to share tasks 1990 to recycle 50 per cent of recyclable and to learn from other countries’ experiences. household waste by the year 2000 may also The cost has averaged D61,OOO a year over the limit the amount of biodegradable waste going past three years; around 6 per cent of the to landfill -the foe1 for gas generation. United Kingdom’s programme expenditure on However, 90% of waste currently goes to biofoels. landfill, and a majority of waste will invariably do so for at least another decade. Landfill gas 3.12 Given that one of the Department’s principal will therefore continue to be produced in aims has been to increase the yield of landfill significant quantities well into the early sites, the success of their programme can be decades of the next century. This guarantees a measured by the increases in the assessments substantial market for energy recovery from of potential made over the life of their landfill sites. programme [Table 3). 3.15 The Department are currently re-assessing its Table 3: Assessment of Potential Resource future programme, following a review of current practice. Funding on the technology has been reduced pending the outcome of the review. ~ 3.16 Key Findings
Source:Energy TechnologySup/ml Unit technology demonstrates the benefits of The Table shows how the assessmentsof the potential resource from landfill gas sites have increasedas the technologyhas industry on collaborative projects; becomemore developed.
l the Department’s programme has led to the development of this technology. Even with 3.13 Another indication of the success of the the advent of initiatives to recycle waste programme is the level of take-up of the waste, landfill gas will continue to technology. In the first Non-Fossil Fuel provide, well into the early decades of the Obligation Order, 25 of the 75 approved next century, a substantial market for projects were for landfill gas schemes with a energy recovery from landfill sites. declared net capacity of 35.5 megawatts. In the second Order, a further 28 landfill projects were accepted with a declared net capacity of Wind Energy 48 megawatts. Figure 7 opposite illustrates the growth in the number and capacity of landfill 3.17 Although wind is one of the world’s oldest gas schemes over the past decade. The United energy sources it is also regarded as one of the Kingdom is the second highest generator of most promising sources of renewable energy power fxom landfill gas in the world. for the future. The United Kingdom is particularly well endowed having 40 per cent
18 THE RENEWABLE ENERGY RESEARCH, DEVELOPMENT AND DEMONSTRATION PROGRAMME
Figure7: Existinglandfill gasschemes in the UnitedKingdom Number of Schemes 60
50
40
30
Power Generation 2.0
10
0 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 Year
Capacity(Megawatts) 60
50
40
30
20
10
0 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 Year
Source: Energy TechnologySupport Unit Figure7 shows the growth in the use of landfill gas and the changein emphasisfrom direct use in kilns to the generation01 electricity which occurred in the mid-l 980s.
19 THE FmvEWABLE ENERGY RESEARCH, DEvEI,OPMENT AND DEMclNSTRATlON PROmAMME
Construction of one of the world’s largest wind generators on Orkney (paragraph 3.19). Source: Wind Energy Group Limited.
The United Kingdom’s first operational wind farm at Delabole, Cornwall. Source: Energy Technology Support Unit. THE RENEWABLE ENERGY RESEARCH, DEVELOPMENT AND DEMONSTRATION PROGRAMME
P---- “- -~ *r- ~- !e%!Fw+- ~.. .,++.;;T
Landfill gas site. Source: Energy Technology Support Unit.
Active solar water heating panels on factory in Leicester. Source: Dr F Mahdjuri. THE RENEWABLE ENERGY RESEARCH. DEVELOPMENT AND DEMONSTRATION PROGRAMME
of Europe’s realisable on-shore wind energy Figure 8: A typical horizontal axis wind turbine potential according to the European Wind Energy Association. However, as observed by the Renewable Energy Advisory Group, it is a generally held view that the electricity grid could not accommodate more than 10 to 20 per cent of its input from an intermittent source such as wind energy. Today’s technology harnesses the energy of the wind to drive a turbine generator producing electricity. Figures 8 and 9 show the two main machine designs available: horizontal and vertical axis. Although vertical axis machines are robust and indifferent to wind direction horizontal axis designs have reached a more advanced stage of development and are used much more extensively. A range of such turbines have been developed in order to produce electricity from a few kilowatts to several megawatts.
Wind energy research programme
3.18 The stated aim of the Department’s wind energy research programme is to take the development of the technology for large-scale electricity production through the demonstration phase and on towards commercialisation. Costing S54.2 million to date (23.4 per cent of the total renewable energy programme) the programme’s strategy Figure 9: Atypical vertical axis wind turbine has involved:
. the consixuction, operation and monitoring of prototype wind turbines to explore the technology (S14.2 million):
. an extensive underlying research and development programme (f16.3 million);
l the investigation of the potential for the development of larger machines (f13 million); and
. the support of selected windfarms under the Non-Fossil Fuel Obligation to obtain data on the environmental, Lechnical and economic aspects of commercially available machines and to obtain system operating experiences (E8.5 million].
In addition the Department have an ongoing programme to assess the available resource and the likely cost of exploiting it (f2.2 million).
Source: British WindEnergy Association Figures8 and 9 illustratethe typical design of a horizontaland a vertical wind turbine.
20 THE RENEWABLE ENERGY RESEARCH, DEVELOPMENT AND DEMONSTRATlON PROGRAMME
Large scale and vertical axis research current view of the Department is that these machines are unlikely to be able to compete 3.19 Up to 1987, the wind energy research successfully against the horizontal axis programme placed emphasis on the machines and a decision was taken recently to development of the large scale megawatt size discontinue supporting their development. machine -which was perceived as the most practical option for the main potential Support for other research and development cuslomer, the Central Electricity Generating Board. A quarter of the total wind programme 3.23 Despite one of the overall aims of the budget has been spent on developing this type renewables research programme being to of technology including support for one of the encourage industry to develop capabilities for largest wind turbine generators in the world a the export market, small wind turbine three megawatt machine on Orkney which manufacturers serving niche markets in the became operational in 1987. United Kingdom ,which also have considerable export potential, have not been supported by 3.20 A major United Kingdom manufacturer to have the Programme. One such example from the received funding from the wind energy National Audit Office’s survey is the case of research programme, Wind Energy Group Proven Engineering Products Limited. They Limited, confirmed to the National Audit had designed and sold a small number of 2.2 Office that they had gained technological kilowatts non-grid connected wind turbine for benefit from their participation in the large remote power and heating. The Company turbine programme. Although acknowledging considered there not only to be a large market that large machines were not currently from such remote locations in the United economical, their smaller commercial Kingdom but also in exports to developing machines had incorporated lower machine countries. But they believed their ability to weight and superior rotor design advantages sell their products more widely had been over their competitors through participation in impeded by the lack of funding from the the programme. Another company, Howden Department’s programme for demonstration Group plc obtained funding, including support work. from the Commission of the European Community, for the construction of the one 3.24 The Department told the National Audit Office megawatt horizontal axis demonstration that they believed that sxne of Government machine for the Central Electricity Generating programmes, such as SPUR and SMART Board at Richborough in Kent. Despite this, the [paragraph 2.21) are more appropriate to the Company’s commercial developments were development of small wind turbines. In the based on more modest machines: for example, case of Proven Engineering Products, the they supplied 86 of their 330 kilowatt Department’s “Design Council’ scheme machines to a wind farm in California in 1985. provided scme initial help in their early wind In 1989, following a major review of market turbine development. Scottish Enterprise had prospects, Howden Group plc withdrew from also contributed towards its launch costs. the wind turbine market. Wind Energy Group Historically the wind programme has not Limited has remained active in the market. devoted any resources to the very small machines used for battery charging in the 3.21 Since 1987 the Department’s programme, leisure market or in remote locations. working in collaboration with industry, has concentrated resources on the smaller The development of the United Kingdom home commercial wind turbines being deployed in market increasing numbers in Europe (principally in 3.25 One of the considerations which led the Denmark and Germany). Commercial machines Howden Group to withdraw from wind turbine are, however, gradually getting larger with the development and production was the lack of a latest models being developed with a 500 perceived home market. Under the Non-Fossil kilowatts rating. Fuel Obligation this has now been created for grid connected wind turbines, although it 3.22 Another significant area of research has been remains of limited size. Table 4 overleaf shows on the vertical axis machine. Programme the Non-Fossil Fuel Obligation contracted expenditure to March 1993 on vertical axis wind farms operational or under construction machine research has totalled f5.9 million. as at 1 September 1992. However, after a rigorous assessment, the
21 THE RENEWABLE ENERGY RESEARCH. DEVELOPMENT AND DEMONSTRATION PROGRAMME
3.26 Apart from one wind farm, Werfa Mynydd, remain uneconomic at the present time. Glamorgan using vertical axis machines, all the Since 1987, the programme has remaining wind farms shown in Table 4 use concentrated on medium-sized machines: horizontal axis machines generally in the 300 kilowatts to 400 kilowatts output range. the developing United Kingdom home Twenty per cent of installed capacity is from market is generally using horizontal axis United Kingdom manufacture Wind Energy machines in the 300-400 kilowatt range. Group Limited. The National Audit Office With the funding benefit from the noted that by comparison with the leading Non-Fossil Fuel Obligation, twenty per countries for wind energy generation, 100 per cent of installed capacity so far are from cent of turbines used on Danish wind farms United Kingdom manufacture -Wind were from domestic manufacture while 60 per Energy Group. Although this is creditable cent of those installed to date in the United start for a company without the benefit of State of America were of domestic origin. the overseas competitors’ home market it is still a significantly lower proportion of 3.27 Key Findings home-based manufacture than in other leading countries for wind energy l given the richness of the United generation; and Kingdom’s ~RSOIXCBthe Department were justified in devoting over a fifth of its , there has been limited emphasis in the funding to wind technologies: programme on encouraging the United Kingdom industry to develop commercial . earlier market emphasis on the capabilities for emerging export markets, development of large-scale horizontal axis although this is a stated aim of the machines reflected the needs of the then Department’s programme. nationalised electricity companies. Although there has been useful technological spin-off from this aspect of the progmn~me, large-scale machines
Table 4: Non-Fossil Fuel Obligation Contracted Operational or Under Construction Wind Farms as at 1 September 1992 DWelOQer Site of Project, County Manufacturer Number Rated MW Blythe HarbourCorp.iREGEN Blyihe. Nolthumberland HMZ 9 2.7 CraterWind Turbines Otton Airport, Cumbria crater 10 3.0 EcoGen Llidiartywaun,Powys Mitsubishi 60 18.0 EcoGen Penrhyddlan.Powys Mitsubishi 43 12.9 EcoGen Rhyd-y-Graes.Anglesey Bonus 24 7.2 NationalWind Power Cemmaes.Powys WEG 24 7.2 NationalWind Power Cold Northcott,Cornwall WEG 21 6.3 NationalWind Power Llangwyryfan.Oyfed WEG 20 6.0 PermaEnergy Taff-Ely.Mid Glamorgan Nordtank 20 9.0 RenewableEnergy Systems GarlandCross. Cornwall vestas 15 6.0 RenewableEnergy Systems CoalClough. W Yorkshire vestas 24 9.6 Windcluster Haverigg.Cumbria vestas 5 1.1 Windelectric Oelabole.Cornwall vestas 10 4.0 Windstar WerfaMynydd. Glamorgan Wind Harvester 20 0.5 YorkshireWater Chelker,Yorkshire WEG 4 1.2 YorkshireWater OvendenMoor, Yorkshire vestas 23 9.2 Totals 332 103.9 Source: Energy TechnologySuppoti Unit The Table showsthat only 4 of the 15 windfarmssupported under the Non FossilFuel Obligation which are currently operationalor under construction are using machinesmanufactured in the UnitedKingdom.
22 THE RENEWABLE ENERGY RESEARCH. DEVELOPMENT AND DEMONSTRATION PROGRAMME
Geothermal Hot Dry Rocks Figure 10:Conceplual arrangement for exploiting a hot dry rock system 3.28 The temperature in the Earth’s crust increases with depth, although the rate at which this happens varies from place to place making some areas mcxe suitable for geothermal energy than others.
3.29 Conventional exploitation of geothermal energy has occurred in areas where hot rocks or magma have come into contact with water naturally found in the rock producing hot water onstream. The areas of the world where this occurs are very limited. Consequently, the concept of extracting energy from rocks not subject to natural water circulation, known as hot dry rocks, began to be developed at Los Alamos in the United States in 1975. This involves drilling at least two wells until high temperature rock is reached. A fracture system in the rock (known as the reservoir] needs to be created so that water can be pumped down one well and circulated through the reservoir, collecting heat. The heated water is then returned to the surface via the second well where the heat collected is used to generate Smne: Enerov TechnoloovSuooorf Unit electricity. This is illustrated in Figure 10. To FigureIO illustratesthe conceptualarrangement required to generate electricity the core rock temperature generateelectricitv usina hot drv rocks. must reach at least 200 degrees centigrade. In the United Kingdom the best resource lies in totalled E39 million. A chronology of the Cornish granite but temperatures of this programme is shown in Figure 11 overleaf and magnitude are only reached at depths between expenditure levels are illustrated in Figure 12 six and seven kilometres, the limit of current on page 25. drilling technology. This can be contrasted with Los Alamos where these temperatures 3.32 The National Audit Office examined the occur at around 3.5 kilometres depths and in Department’s approach to this programme and Japan where 200 degrees centigrade occurs at their success in achieving their objectives. The only two kilometres depth. main findings are set out below. The United Kingdom programme 3.33 The Department’s programme was based on an 3.30 Although by global standards the United incremental approach, seeking first to prove Kingdom does not enjoy particularly that the technology would work at shallower favourable conditions, in 1976 the resource depths before committing the high level of was felt to be sufficiently large - approximately funding necessary to explore the viability of I 20 per cent of national consumption to operations at the key depth of six to seven warrant a programme of research in this kilometres. Thus the programme was split into Country phases and at or towards the completion of each phase progress was reviewed before 3.31 The United Kingdom’s hot dry rocks decisions were taken about the future course of programme was carried out by the Camborne the programme. School of Mines between 1976 and 1991 at Rosemanowes Quarry, near Falmouth in 3.34 The first phase, between 1977 and 1980, was Cornwall. The aim of the Department’s concerned with demonstrating the feasibility of programme has been to assess the technical achieving a connection between boreholes and and economic feasibility of the commercial of circulating water through the rock to collect exploitation of hot dry rocks in the United Kingdom. Expenditure on this programme
23 THE RENEWABLE ENERGY RESEARCH. DEVEI,OPMENT AND DEMONSTRATION PROGRAMME
Figure 1l:Chronology of hot dry rocks research programme at Rosemanowes
Year Principal Elementsof Programme Key Results/Achievements PHASE1 1977.1980 Four300 metre boreholesare drilled and a hydrauliclink Tests reveal low resistanceto water flow and low water loss establishedbetween three of them. and give confidenceto proceedto deeperexperiments. PHASE2 1981 Two borehalesdrilled to 2,100 metresinclined by 30 degrees Drilling successfullycompleted in 127 days, less than half the from the vertical towardsthe bottom of the borehole. estimatedtime. 1982 A large reservoirwas formed betweenthe boreholesby Systemcreated has unbalancedcirculation with high explosivesand by injecting high pressurewater into the rock resistanceto water flow and high water losses (average69 fractures. per cent). The fracture system does not grow as had been anticipated. 1983 A small amount of gel injectedinto the reservoirat pressure Subsequentcirculation shows no sign of improvement. to seekto improve flow. 1984 Third boreholedrilled to a depth of 2,700 metresto intersect Drilling successfullycompleted between October and reservoircreated in earlier work. Minor exiensionsadded to December1984. existing two barehales. 1985 A much smaller resewoir was now formed by injectingfluid Water lossesand resistanceto water flow are improved. at high pressurebetween one of the original boreholesand Water lossesfall to 25 per cent and an output temperatureof the new borehole. Circulationstarted. SOdegrees centigrade is achieved. 1986.1988 A continuouscirculation of the reservoiris run from late 1985 The resistanceto water flow and water lossesdo not satisfy I until 1988;the longestcirculation of any hot dry rocks the targets. A major problememerged. The temperatureof resewoir in the world to date. water productionfell from 60 degreescentigrade to 55 degreescentigrade over this period:signifying that a significantamount of water circulatingin the reservoirwas flawing along preferentialflow faults or ‘short circuits’. ! PHASE3 1988-1991 A numberof experimentsunderiaken to seekto improvethe Theseexperiments do not revealany meansof successfully performanceof the reservoir: controllingthe reservoir. I I a altering injectionpressures; f sealingflow pathswhich result in unevenflow through the system:
l insertionof proppantmaterial into the rock joint to keep them open: 1
l localisedsecondary injection of high pressurefluid into the rock mass. [All workat Rosemanowesceased in 1991.1 I Source: NadonalAudit OH& I Figure11 showsthe key datesand principal elementsof the Department’shot dry rocks researchprogramme. together with a summary of the results ! obtained. I
heat. This was judged to be sufficiently action was attempted in a further programme I successful to justify proceeding to a second of work commencing in 1984 which included phase of investigation. drilling a third borehole to to the depth of 2.7 kilometres, and a continuous circulation test of I 3.35 After consideration of a number of options it water through the reservoir was undertaken. i was decided to proceed to test the techniques This was originally planned to be completed of rock fracturing and reservoir management at by 1986 but, in an attempt to overcome the a depth of z kilometres. The first part of this disappointing results thus far, was extended . phase, which lasted from 1980 to 1983, was until 1988. But at the completion of this phase 1 jointly sponsored by the Department and the significant technical problems remained Commission of the European Community unresolved. which made a contribution of E3.5 million / towards the cost. It began successfully but ran 3.36 In October 1986 the Department published a into problems because the rock fractured review of the economics of hot dry rocks as an I differently at this greater depth and created a energy source for the United Kingdom which reservoir in which there was a very poor had been undertaken by one of the Energy I connection between the boreholes. Remedial Technology Support Unit’s economic advisors. I !
24 THE RENEWABLE ENERGY RESEARCH, DEVELOPMENT AND DEMONSTRATION PROGRAMME
Fioure 12:Deoatlment of Enerov exoenditure on the hot drv rocks research and develooment orooramme 1976-1991 Departmentof Energy cumulativeexpenditure (fM)
Year
Source: Energy TechnologySuppmf Unit Figure12 showsthat expenditureon the hot dry rocks programmerose almost cmxtantly (in monetaryterms) from 1981to 1991and totalled f39 million.
This review assumed that all technical necessary depths through granite rocks and problems thus far encountered could be establishing a low impendance reservoir. overcome and was based on relatively Taking into account the findings of the report optimistic assumptions, against the progress and their own assessment, the Energy achieved at that time, about reservoir life, flow Technology Support Unit’s view of the rates and water loss. It concluded that the cost technology, at that time, was that it remained of electricity generated from hot dry rocks “promising but uncertain”. would be 4.2 pence per Kilowatt hour. This rendered the technology generally attractive 3.38 The Department carried out a major review of when compared with projected costs of the programme in 1987 which included an coal-fired generation but not with nuclear update of the 1986 economics assessment and powered technologies. The report also a report into the technology by a commercial recognised that areas of Devon and Cornwall firm, Taylor Woodrow. The review recognised within National Parks could not be exploited that many of the technical problems remained for hot dry rock power plants, and concluded unsolved; the reservoir was too small and was that the total economically accessible reserve cooling down too fast, flow rates were too low, in South West England was about 200 Terawatt and impedance and water losses remained too hours, which represented approximately two high for commercial operation, but concluded and a half per cent of current electricity that the resource size was in the range between generation over a 25 year period. 4 and 17 gigawatts with an estimated generating cost of between 3 and 6 pence per 3.37 However, the report noted that considerable Kilowatt hour. The commercialisation uncertainty exists in many of the background prospects were assessed as reasonably assumptions underlying the calculation of the favourable in the long term by Taylor cost of electricity generated from hot dry rocks, Woodrow, provided the major technical particularly the costs of drilling to the problems could be overcome. Additionally,
25 THE RENEWABLEENERGY RESEARCH, DEVELOPMENTAND DEMONSTRATlONPROGRAMME
Camborne School of Mines had developed a l hot dry rock technology was unlikely to new concept which they believed could solve attract private sector funding in the the remaining technical problems. foreseeable future.
3.39 The Department considered that the resource 3.41 Following the 1990 review, the Department size was too good, and the economics too considered a number of options on the future promising, to justify closing the programme, of the technology. One option was to close the but the technical problems prevented them programme which would be in accordance from proceeding to the next phase of building a with the views of the 1988 Energy Paper 55 prototype commercial planl. Consequently a (paragraph 2.12) which stated that research further phase of work was proposed on the and development would be curtailed when the existing reservoir although it was recognised technology was classified as a “long shot”. by this stage that solving the problems at Other options included continuation of shallower depths would not necessarily make research in Cornwall with drilling a six the technology commercially attractive for kilometres hole to resolve current uncertainties deeper wells. Accordingly the design of a in parallel with a collaborative programme commercial prototype was included in the with Europe. plan for the next phase of work, towards which an industrial contribution in cash and 3.42 Following further consultation with the provision of project staff worth some SO.4 Renewable Energy Advisory Committee million was made. (paragraph 2.23), the Department believed that the best way forward at this stage was to close )’ 3.40 The third phase began in 1988 and continued the United Kingdom programme, centred on ;;’a until 1991. Although performance targets were research in Cornwall, and collaborate, at a 8, set at an earlier stage, and the development of much reduced cost, with the European ji targets improved as research further clarified programme then underway in France and the issues, the reservoir management Germany. experiments were not successful in solving the technical problems and achieving the targets 3.43 The Department believed that important set. Moreover, the conceptual design study for lessons could be learnt from the collaborative I a commercial system undertaken by RTZ project. Although hot dry rocks is a very site ! consultants, a company not previously specific technology, the Department’s 1 involved in the programme, and cost programme (having already cost some f39 I modelling work carried out by Sunderland million] was relatively expensive and no Polytechnic, both concluded that the country had yet solved the problems of 1;! generation of electrical power using hot dry reservoir creation and operation. The rock technology was neither technically nor substantial expertise developed from the I; economically viable in either the short or United Kingdom’s own programme would be I medium term, with cost estimates ranging from beneficial to the European project which 15 to 60 pence per Kilowatt hour [depending would also provide a further opportunity of I on assumptions made). A Departmental review transferring the technology to industry. I of the programme which commenced in 1990 \ concluded that: 3.44 In July 1993 the Department announced that they were to close the hot dry rocks . a satisfactory procedure for creating an programme by 31 March 1994 and maintain a underground hot dry rock reservoir had watching brief after that time. J not been demonstrated; I l there was no reliable information available Overseas experience *t about rock joints and stresses likely to be encountered at six kilometres: 3.45 Hot dry rock research has been carried out by the following countries: the United States of :I: . electricity from a commercial hot dry rock America, France, Germany, Japan, Sweden and power station was unlikely to prove the Ukraine. In 1981 the United States were ;;; competitive in the short or medium term: prepared to invite the United Kingdom to join it in a cost sharing collaborative programme I which already included Japan and Germany.
26 THE RENEWABLE ENERGY RESEARCH, DEVELOPMENT AND DEMONSTRATION PROGRAMME
The United Kingdom declined because they 3.48 Key Findings felt the benefits gained would not match the cost and their own programme had alrtrady 1 although it is now clear that rocks at been designed. different depths and sites behave differently, the Department were justified 3.46 Subsequently the United States have continued in their approach of seeking to prove the their programme on a national basis albeit at a technology in stages before proceeding to a more limited rate of funding. Major full scale prototype project which would technological problems remain in their have cost significantly more; programme which seeks to develop the system at commercial depths and temperatures. 1 encouraged by the potential resource size and long term potential, the Department 3.47 The Japanese are now investing around E4.5 pursued a programme which was, by its million a year into research at a number of very nature, expensive and involved a high sites. They recognise that despite the degree of technical uncertainty and excellence of their hot dry rock resource it is practical difficulties; unlikely that a power plant will be built until early next century. The Germans too have 1 as a result of the 1990 review, the continued their research at a site at Bad Urach technology was viewed as a “long shot” in South West Germany and the French are and there was an option to close the developing a site at Soultz in Alsace. programme. However, the Department considered the best way forward was to close the United Kingdom programme and collaborate, at a much reduced cost, with the European programme then under way;
although the Department’s hot dry rocks programme is now to close by 31 March 1994, the additional f3.3 million spent on collaborating with the European programme allowed the exploitation of the substantial expertise developed in the United Kingdom and the further opportunity to transfer the technology to industry. THE RENEWABLE ENERGY RESEARCH, DEVELOPMENT AND DEMONSTRATION PROGRAMME
Glossary
Active solar The use of solar collectors which transform incident solar radiation into thermal enerm (heat).
Biofuels Any solid, liquid, or gaseous fuels produced from organic materials, either directly from plants or indirectly from industrial, commercial. domestic or agricultural wastes.
Biomass Material contained in an organism; here used synonymously with organic material, eg. straw, wood, manure.
CO2 Carbon Dioxide.
Declared Net Capacity The equivalent capacity ul base load plant that would produce the same average annual energy output as from intermittent renewables.
Fossil Fuels Organic material, accumulated and partly converted over a long period of time: oil, natural gas, coal, lignite, peat etc.
Fuel Cells Plants where the energy released when oxygen is added to the fuel is directly converted to electricity.
Global Warming The effects of the steadily increasing atmospheric concentrations of carbon dioxide, methane, and nitrous oxide which are believed to result in an increase in world mean temperatures and a rise in sea levels.
Leachate Polluted water from a landfill site.
Non-Fossil Fuel Obligation Part of the 1989 Electricity Act which requires each Regional Electricity Company to purchase a certain level of non-fossil fuel sourced electricity.
NOx Common term for nitrogen compounds with unspecified oxidation which can be converted into one another in the atmosphere.
Passivesolar The utilisation of sunlight to heat and light buildings: thus reducing energy requirements.
Photovoltaics Systems which exploit the direct conversion of light to power in a semiconductor device (the PV cell).
Reservoir Term used in Hot Dry Rocks technology to describe the volume of rock from which it is intended to extract heat through the circulation of water through the naturally-occurring joints.
28 THE RENEWABLE ENERGY RESEARCH, DEVELOPMENT AND DEMONSTRATION PROGRAMME
Explanation of electrical terms used
KilOW&t 1,000 watts.
Megawatt 1,000,000 watts.
Gigawatt 1,000,000,000 watts.
Terawatt 1,000,000,000,000 watts.
Kilowatt-hour The energy expended when a rate of 1,000 watts is maintained for one hour.
Terawatt hours per year 1,000,000,000 kilowatt-hours of electricity supplied or consumed in one year.
Petajoules An alternative energy measure: 1 petajoule is equivalent to 0.278 Terawatt hours of electricity.
29 THE RENEWABLE ENERGY RESEARCH, DEVELOPMENT AND DEMONSTRATION PROGRAMME
Appendix 1 National audit office questionnaire sent to participants in the renewable energy field
1 The National Audit Office sent a questionnaire to 53 participants in the renewable technologies field including manufacturers, commercial and academic researchers. Regional Electricity Companies and relevant Trade Associations. There was a response rate of 64 per cent.
2 The questionnaire asked rcspondcnts to consider a range of issues including:
. their experiences in seeking assistance from the Department:
. ratings of various aspects of the Department’s research, development and demonstration programme: and
. the workings of renewable technologies Advisory Committees.
Summary of Responses
3 What would you hope to gain from a research, development and demonstration programme?
From choice of:
. financial support:
. information about technological developments/results of other similar work:
. collaboration with the Department;
. introduction to potential collaborators/others working in a similar field:
. technical advice;
. use of facilities/equipment/technical staff.
What would you hoge to gain from an R,D&D Programme? (more than one choice allowed)
Fmentaoe I^^I”” 90 80 r 68 70 00 48 50 A 40 30 28 20 10 0 on CO,,abm,ion lnflOd”ctio” Advice Ihe Ofm,itier
30 THE RENEWABLE ENERGY RESEARCH, DEVELOPMENT AND DEMONSTRATION PROGRAMME
4 Do youfeel that theProgrammeodequatelyprovides the typesofassistanceyou hadhoped to gain?
Fifty per cent of respondents felt that the Programme does not adequately provide the type of assistance they would have hoped to gain. The main comments indicated a desire for:
. more funding/resources:
l longer term/political commitment to renewable technologies;
. improved publicity and availability of research information;
. a protected home market/support of technologies under commercial conditions:
. greater support to smaller companies/projects:
. greater help in gaining European Commission funding.
5 How would you rate the following aspects of the Programme?
How respondants rated particular aspects of the Department’s R,D&D Programme
Markmgan* prOmOtion
CoopemionWiol respondent
Good AssessmenlOfprojects
Speed‘It processingicontracts
ate F”ndingfolfechnolOgy
Fundingunderthe programme
0 10 20 30 40 50 50 Per cent
. there appears to be dissatisfaction with the level of funding:
. the speed of processing applications and arranging contracts was examined in more detail by the National Audit Office. It was revealed that action has been taken to rectify this and processing times have fallen considerably over the past two yeas;
. there is generally satisfaction with the Department’s assessment of projects and co-operation with those proposing projects. Although some respondents indicated that they were unclear over the role and functions of the Energy Technology Support Unit.
31 THE RENEWABLE ENERGY RESEARCH, DE”ELOPMENT AND DEMONSTRATION PROGRAMME
6 Concerning the Advisory (Steering) Committees
Were you aware that a Committee exists for your technology?
yes 1 no (
Has your company had contact with this Committee?
yes ) no 1
. contact was mainly through having a serving member on the Committee.
In your opinion, has this Committee been influential in forming the Department’s research, development and demonstration programme?
yes ) no m don’t know 1
. respondents commented that Committee members serve for too long and that regularreview and change of Committee members is necessary for them to be useful.
32 THE RENEWABLE ENERGY RESEARCH, DEVELOPMENT AND DEMONSTRATKN PROGRAMME
Appendix 2 Renewable energy in the United States of America
Background
1 Interest in renewable energy technologies developed in the second half of the 1970s following the oil crises. At Federal level a significant programme of research and development was put in place, reaching its peak in 1981. Under a new regime and with oil prices falling, funding was cut back but interest in the programme was rekindled in the later part of the decade although funding never returned to the high levels of the early 1980s.
Size of Resource
2 A review of the size of the potential resource in 1990 by the National Laboratories (which are contractor-run but funded from the Federal budget) concluded that it far exceeded the United States’ remaining fossil fuel reserves. However, the potential contribution from renewable energy technologies was uncertain due to technical and institutional constraints.
Policy and Objectives
3 The Department of Energy is mindful of the fact that there is a forecast electricity capacity gap, estimated to be 200 gigawatts, by the year 2010 as demand grows and as existing plant becomes uneconomical OI obsolete. Decisions in new plant will need to be taken starting the mid-1990s. The Department of Energy’s objective is to ensure that utility companies, both publicly and privately owned, include a diverse mix of energy sources to meet their requirements, and that renewable energy technologies are developed sufficiently for them to be part of the decision-making process in the mid-1990s.
Funding for the Research, Development and Demonstration Programme
4 Renewable energy technologies have received E3,913 million (at exchange rate of 51.5 to the El) since 1975. In 1992 the figure was ~&I35 million.
5 In 1992 an Act of Congress was passed which fostered the development and production of energy &om renewable sources through:
. tax relief of 1.5 cents per kilowatt hour for electricity generated from certain renewable energy resources:
. payment of 1.5 cents per kilowatt hour to State owned [non-tax paying) utilities for energy produced from certain renewable energy resou~es: and
. making permanent a 10 per cent tax credit on investment in eligible technologies,
33 THE RENEWABLE ENERGY RESEARCH, DEVELOPMENT AND DEMONSTRATION PROGRAMME
Installed Capacities and Generating Costs
6 Installed capacity from renewable energy sources in 1991 totalled 102,000 megawatts, which represented 14 per cent of total generating capacity. The majority of this came from two mature technologies: biomass and hydra Geothermal. wind, solar and photovoltaics each made a small contribution (Table 51.
Table5: InstalledCapacity in 1991 (Megawatts) Photovoltaics 10 Solar Thermal 360 Biomass 6,000 Wind 1,500 Geothermal 2,600 ConventionalHydra 75,000
Source: UnitedSfates Department of Energy The Table showsthe installedcapacity of renewableenergy in America by technology.
7 Changes in Generating Costs of each technology are shown in Table 6.
Table6: Genarafino Costs of Renewable Enerav Technologies Cents per kilowatf hour - 1990 dollars 1980 1990 Estimate of Year 2000 Photovoltaics 100 33 15 Solar Thermal 54 10 8 Biomass 9 6 6 Wind 39 6 4 Geothermal 6.5 5.7 4.8 Source: UnitedStates Dehwimenf of Enerov The Table showsthat generatingcosts of renewableenergy technologies in Americahave fallen considerablyover the east decade.
8 Changes in Capital Costs and operation and maintenance costs (O&M) for the technologies are shown in Table 7.
Table 7: Costs Associated with Renewable Energy Technt IlOf fies 80s r 1 I O&M Capital Costs O&M Centsper kwmr 1990 $s per kw cents per kwlhr 2.0 6.000 0.4 Solar Thermal 4.0 3.000 1.0 to 2.5 1.35 1,500 1.35 4.0 1,000 1.0 Geothermal 4.0 2,600 2.2 1.000 0.5 Sources UnitedStates Department of Energy The Table shows how capital costs and operationand maintenancecosts Of renewableenergy technOloQies have fallen during the UnitedStates’ researchProQramme.
34 THE RENEWABLE ENERGY RESEARCH, DEVELOPMENT AND DEMONSTRATION PROGRAMME
Programme approach
9 The United States’ programme consists of two main thrusts:
. research and development: and
. marketing deployment.
The Department recognise that initial research work requires Government funding and it is frequently undertaken in the National Laboratories, but they seek to ensure that applied work develops in close liaison with industry. The 1989 National Competitive Technology Transfer Act established Co-operative Research and development Agreements. Joint Venture programmes are also common. The aim is to ensure industry are committed to a technology by making them invest funds into it.
10 The Department periodically supports demonstration projects as a link between research work and commercialisation.
11 The United States have supported a varied programme into the full range of renewable energy technologies. The highest expenditure has been into Photuvoltaics because this is seen as having great potential and there are a large number of possible applications of the technology to be researched. Other key technology areas are wind, go&hen& solar thermal electric and biomass electric.
35 THE RENEWABLEENERGY RESEARCH, DEVELOPMENT AND DEMONSTRATION PROGRAMME
Appendix 3 The development of Renewable Energy in Denmark
Background
I Renewable energy technologies were given a high priority since the early 1970s. The main reason for this was that renewable energy was seen as a means of reducing the need for imported fuels. More recently, with increasing self-sufficiency in North Sea oil ad gas and the lower relative cat of energy, the main impetus for the continued interest in such technologies is concern about the environment, particularly the need to reduce carbon dioxide emissions.
Size of Resource
2 In 1990 the Danish Ministry of Energy issued the report “Energy 2000: A plan of Action for sustainable Development”. According to the report it is stated that gross energy consumption in 1988 was approximately 765 petajoules. Against this demand. the action plan indicates that biomass alone has the ability to contribute 217 p&Joules (28 per cent) of energy required. Adding to this the potential of other renewable energy forms such as wind energy (30 petajoules) and wave energy (22 petajoules), then total domestic sources of renewable energy are considered a major potential sounze of energy supply.
Policy Aims and Objectives
3 The aim of the “Energy ZOOO”action plan is to create the basis for reducing CO2 emissions by 20 per cent, SO2 emissions by about 60 per cent and NOx emissions by about 50 per cent from the 1988 levels by the year 2000.
4 The energy plan sets targets for those renewable energy sources which would make a significant contribution to the achievement ofthe plan’s overall aim: wind, energy and biomass. The targets CUY?:
for wind energy: to establish, before 1 January 1994, wind energy plants yielding an additional capacity of 100 megawatts and to bring the installed capacity to some 1500 megawatts by 2005;
for biomass: to utilise biomass energy resources to provide some 50 p&Joules per yea by the year 2005:
for renewables to increase the consumption of renewable energy by 100 per cent by the as a whole: year 2005 (to about 10 per cent of total energy demand).
36 THE RENEWABLE ENERGY RESEARCH, DEVELOPMENT AND DEMONSTRATION PROGRAMME
Funding for the Research, Development and Demonstration Programme
5 Renewable energy technologies have received an average of approximately Z2.7 million per annum [at an exchange rate of DKr 9 to fll since 1982 from the Danish energy research and development programme. Additionally, a separate project support programme has been undertaken since 1981 specifically for renewable energy projects. The programme includes: support for development and experimental work, the demonstration of new types of equipment, the provision of test stations and quality standards, monitoring and dissemination of information. ~14 million was allocated to this programme in 1992.
Other forms of Government funding
6 State funds are provided towards the installation cost of new plant and equipment amounting to 30 per cent of the eligible cost: though lower rates are granted for technologies closer to being economically viable. f2.8 million was allocated to such subsidies in 1992. There is also support for funding decentralised combined heat and power plants and the utilisation of biofuels.
7 Additionally, direct support is provided through exemption from a special energy tax, of 3.6~ per kilowatt hour, otherwise levied on more traditional fuels.
Installed capacity
8 In 1992 renewable energy sources provided 7.3 per cent of gross energy requirements. There has been a fourfold increase in the utilisation of renewable energy between 1972 and 1992 as illustrated in Table 8 below.
Table 8: Utilisation of Renewable Energy by Source 1972 1988 1992 f petajoules Householdand industrialwaste a.4 14.3 17.3 Firewoodand wood chips 2.4 9.6 10.2 Woodwaste 2.5 5.0 7.5 straw 0.7 ii.3 13.8 Biogas 0.1 0.3 1.5 Solar heating 0.1 0.2 Hydropower 0.2 0.3 0.3 Wind power 2.8 8.5 Miscellaneous 2.2 0.5 Total utilisation 1 14.3 45.9 59.8 I Source: EnergyStatistics 1992 Ministry of Energy/DanishEnergy Agency The Table shows the increaseduse of renewableenerw in Denmarksince 1972.
9 With regards to wind energy, Denmark inaugurated the world’s first off-shore wind farm at Vindeby in October 1991. Consisting of 11 wind turbines: each with a 450 kilowatt rating and a combined rated output of five megawatt. Denmark has also been very successful at exporting wind turbines; Table 9 shows total Danish wind turbines installed between 1980 and 1992. THE RENEWABLE ENERGY RESEARCH, DEVELOPMENT AND DEMONSTRATION PROGRAMME
Table 9: Total Danish Wind Turbines installed 1980-1992 No of Wind Turbines NOof Wind Turbines Australia 12 Japan 1 Canada 11 Jordan 4 CapVerde 4 Luxembourg 1 China 52 Mauritius 1 Czechoslovakia 1 Montserrat 2 Denmark 3,436 Mozambique 2 Egypt 8 NewZealand 1 Finland 9 North Korea 2 France 3 Norway 11 F%rOeS 2 Poland 1 Germany 374 Pariugal 54 Greenland 1 Somalia 4 Greece 84 Spain 40 Holland 47 Sweden 101 India 309 Turkey 1 Ireland 22 UnitedKingdom 115 Israel 4 UnitedStates 7,479 Italy 10 Total 12,209
Source: TheAssociation of Danish WindmillManufacturers.
The Table showsthat Danishindustry havebeen very successfulin expordngtheir wind turbinesto many countries
38