March 2010

Developing Community Hydro Developing Community Hydro Schemes in OxfordshireSchemes in Oxfordshire

Alison WilshawAlison WilshawRenewables AdvisorRenewables Advisor

TV EnergyTV Energy

March 2010

Developing Community Hydro Developing Community Hydro Schemes in Oxfordshire – Schemes in Oxfordshire –

Learning from the Goring and Streatley ProjectLearning from the Goring and Streatley Project

• What can we learn from What can we learn from the process of the Goring the process of the Goring and Streatley project? and Streatley project?

• Can we use this Can we use this experience to assist the experience to assist the delivery of future hydro delivery of future hydro projects in our area?projects in our area?

• Guidelines to assist Guidelines to assist communities in the communities in the development of future development of future hydro schemeshydro schemes

March 2010

Goring and Streatley Goring and Streatley Hydro ProjectHydro Project

• Project managed by one Project managed by one community member community member (Dave Holt) with support (Dave Holt) with support from other membersfrom other members

• Run-of-river scheme, - Run-of-river scheme, - more complicated than more complicated than mill stream schemesmill stream schemes

• Joint initiative between two communities; undertaken on Joint initiative between two communities; undertaken on not-for-profit basisnot-for-profit basis

March 2010

Goring and Streatley Hydro – Stages in Goring and Streatley Hydro – Stages in the Development Processthe Development Process

• Feasibility Study (July Feasibility Study (July 2006)2006)

• Stakeholder meeting Stakeholder meeting (March 2007) (March 2007)

• FundraisingFundraising

• Outline Design Study Outline Design Study (completed March 2008) (completed March 2008) suggested peak output of suggested peak output of 246kW with three spirals246kW with three spirals Photomontage of Goring Photomontage of Goring

Hydro SchemeHydro Scheme

March 2010

Goring and Streatley Hydro – Stages in Goring and Streatley Hydro – Stages in the Development Processthe Development Process

• Baseline Flood Risk Assessment (July 2008): slight Baseline Flood Risk Assessment (July 2008): slight increase of flood risk during 100 year eventincrease of flood risk during 100 year event

• Flood Risk Modelling, Flood Risk Modelling, (October 2009 – (October 2009 – March 2010)March 2010)

• Environmental Survey Environmental Survey – river ecology, visual – river ecology, visual and landscape survey and landscape survey (June 2008 – June (June 2008 – June 2009)2009)

March 2010

Goring and Streatley - what next?Goring and Streatley - what next?

• Share issue / fundraisingShare issue / fundraising

• Planning Application (SODC)Planning Application (SODC)

• Land Drainage Consent Land Drainage Consent and Impoundment and Impoundment LicenseLicense

• Detailed design and Detailed design and specificationspecification

• Selection of contractor for Selection of contractor for constructionconstruction

March 2010

TV Energy TV Energy Low Head Hydro StudyLow Head Hydro Study

Summary of South East low head Hydro Summary of South East low head Hydro Potential (assumes 2004 technology)Potential (assumes 2004 technology)

Technical Technical Potential [kW]Potential [kW]

Practical Practical Potential [kW]Potential [kW]

Short Term Short Term Realisable Realisable Potential [kW]Potential [kW]

General SitesGeneral Sites 90889088 53205320 1064 (24 sites)1064 (24 sites)

Thames WeirsThames Weirs 41184118 900900 900 (5 sites)900 (5 sites)

Mills (<10 kW)Mills (<10 kW) 400400 6060 60 (8 sites)60 (8 sites)

TOTALTOTAL 13,60613,606 62806280 20242024

Low Head Hydro Power in the South-East of England – A Review of the Resource and Associated Technical, Environmental and Socio-Economic Issues, TV Energy, 2004

March 2010

Developing a community Developing a community hydro scheme – will it work?hydro scheme – will it work?

• Basic data: Flow, Q and Head, HBasic data: Flow, Q and Head, H

• P (kW) = 7 x Q (mP (kW) = 7 x Q (m³³/sec) x H (m)/sec) x H (m)

• Schemes on the River Thames Schemes on the River Thames are generally low-headare generally low-head

• Schemes over 10 kW may be Schemes over 10 kW may be suitable for further studysuitable for further study

• Several consultancies which Several consultancies which deliver low cost or free deliver low cost or free prefeasibility studiesprefeasibility studies

March 2010

Community hydro – key site dataCommunity hydro – key site data

• Proximity to sub-station Proximity to sub-station or load for electricity or load for electricity (hotel, shops, houses)(hotel, shops, houses)

• Landowner permissionLandowner permission

• Access for construction Access for construction traffictraffic

• Space at side of weirSpace at side of weir

• Existing mill streamExisting mill stream

March 2010

PermissionsPermissions

• Involve the Environment Agency at earliest stagesInvolve the Environment Agency at earliest stages• Environmental Surveys Environmental Surveys • Flood Risk AnalysisFlood Risk Analysis• FisheriesFisheries• Abstraction License; Abstraction License;

Impoundment LicenseImpoundment License• Local Planning AuthorityLocal Planning Authority• Lease of land fromLease of land from

landownerlandowner

March 2010

Feed-in-Tariff for Hydro schemesFeed-in-Tariff for Hydro schemes

In addition to the above, a guaranteed export price of 3 p/kWhIn addition to the above, a guaranteed export price of 3 p/kWh

Worked Example:Worked Example:Head: 2m, Flow rate: 3 mHead: 2m, Flow rate: 3 m³/sec P = 7 x 2 x 3 = 42 kW³/sec P = 7 x 2 x 3 = 42 kW

Annual generation at 50% capacity factor: 182,070 kWhAnnual generation at 50% capacity factor: 182,070 kWhInstalled cost @ c. £5000 / kW = £210,000Installed cost @ c. £5000 / kW = £210,000Annual revenue of scheme = 182,070 x (0.178 + 0.03) = c. £37,871Annual revenue of scheme = 182,070 x (0.178 + 0.03) = c. £37,871Simple payback 5.6 yearsSimple payback 5.6 years

ScaleScale Year 1Year 1 Year 2Year 2 Year 3Year 3 LifetimeLifetime< 15 kW< 15 kW 19.9 p/kWh19.9 p/kWh 19.9 p/kWh19.9 p/kWh 19.9 p/kWh19.9 p/kWh 20 yr20 yr

15 – 100 kW15 – 100 kW 17.8 p/kWh17.8 p/kWh 17.8 p/kWh17.8 p/kWh 17.8 p/kWh17.8 p/kWh 20 yr20 yr

100kW – 2 MW100kW – 2 MW 11 p/kWh11 p/kWh 11 p/kWh11 p/kWh 11 p/kWh11 p/kWh 20 yr20 yr

March 2010

Financing the projectFinancing the project

• Project capital may be financed through:Project capital may be financed through:

– Equity in the project, through local share issueEquity in the project, through local share issue

– Loans, but need to be long termLoans, but need to be long term

– Finance packages negotiated with financial Finance packages negotiated with financial management companiesmanagement companies

– Part debt, part equity – banks may be more willing to Part debt, part equity – banks may be more willing to lend where equity can be used to leverage further lend where equity can be used to leverage further fundsfunds

– Direct investment, e.g. Eon, EDF, to enlarge their Direct investment, e.g. Eon, EDF, to enlarge their renewables portfoliorenewables portfolio

March 2010

Setting up the legal structuresSetting up the legal structures

• Form a legal entity to access grants, loans, or to Form a legal entity to access grants, loans, or to issue shares issue shares – Private Limited CompanyPrivate Limited Company– Industrial and Provident SocietyIndustrial and Provident Society– Not-for-profit organisationNot-for-profit organisation– Co-operative groupCo-operative group

• The type of structure depends on the purpose of The type of structure depends on the purpose of the legal entitythe legal entity

March 2010

Project Planning (1)Project Planning (1)

Year OneYear One Year TwoYear Two

Q1Q1 Q2Q2 Q3Q3 Q4Q4 Q5Q5 Q6Q6 Q7Q7 Q8Q8

TechnicalTechnical Site Site SurveySurvey

Detailed DesignDetailed Design

Feasibility / Feasibility / Outline DesignOutline Design

Surveys and Surveys and PlanningPlanning

Environmental SurveyEnvironmental Survey PlanningPlanning

Flood Risk AnalysisFlood Risk Analysis

FinancialFinancial Planning share issuePlanning share issue Share issueShare issue

Fundraising, loans and grantsFundraising, loans and grants

Legal & Legal & ManagementManagement

Stakeholder Stakeholder MeetingMeeting

Formation of Industrial and Formation of Industrial and Provident SocietyProvident Society

Establish Establish CompanyCompany

March 2010

Project Planning (2)Project Planning (2)Year ThreeYear Three Year FourYear Four

Q1Q1 Q2Q2 Q3Q3 Q4Q4 Q5Q5 Q6Q6 Q7Q7 Q8Q8

TechnicalTechnical Construction & Construction & InstallationInstallation

Operation & MaintenanceOperation & Maintenance

Civil worksCivil works

Surveys and Surveys and PlanningPlanning

FinancialFinancial CapitalCapital Income generationIncome generation

ExpenditureExpenditure

Legal & Legal & ManagementManagement

Power Power PurchasePurchase

Business ManagementBusiness Management

March 2010

Other examples of Other examples of community energy projectscommunity energy projects

• Torrs Hydro, New Mills, DerbyshireTorrs Hydro, New Mills, Derbyshire• Baywind Energy Co-operative, CumbriaBaywind Energy Co-operative, Cumbria• Westmill Windfarm Co-operative, Westmill Windfarm Co-operative,

OxfordshireOxfordshire• Energy4All – Energy4All –

www.energy4all.co.ukwww.energy4all.co.uk• South Somerset South Somerset

Hydropower GroupHydropower Group

March 2010

South Oxfordshire South Oxfordshire Hydro CommunitiesHydro Communities

• Dorchester-on-Thames Dorchester-on-Thames (Days Lock Weir)(Days Lock Weir)

• Henley-on-ThamesHenley-on-Thames

• Whitchurch / PangbourneWhitchurch / Pangbourne

• Benson / Wallingford / Benson / Wallingford / Brightwell-cum- SotwellBrightwell-cum- Sotwell

March 2010

Guidelines for Developing Community Guidelines for Developing Community Hydro Schemes in OxfordshireHydro Schemes in Oxfordshire

Thank you for listeningThank you for listening

alison.wilshaw@tvenergy.orgalison.wilshaw@tvenergy.org