towards a zero-carbon microcosm economy: a case study of renewable energy and energy efficiency...
DESCRIPTION
Climate change and the global financial crisis are arguably the greatest challenges facing humanity today. Across the world, communities are feeling the effects of a change in climatic conditions that is being accredited to increased anthropogenic emissions since the Industrial Revolution. Those most at risk to the effects of climate change are developing countries, many of whom in addition to this issue have to face multiple other stresses of famine, poverty and war. In other parts of the world, it is socio-economic challenges that are crippling once thriving communities. This is particularly true in the case of small rural island communities off the Irish and Scottish coasts where traditional industries have disappeared bringing with them large segments of island populations who are being forced to emigrate due to the lack of economic opportunities. This dissertation identifies the measures taking place in small island communities that, through the pursuit of low-carbon development, can attempt to address both the issue of climate change mitigation and the dwindling socio-economic opportunities on rural island communities.Through extensive qualitative research, the study develops a detailed description of the characteristics of traditional energy supply, the renewable energy and energy efficiency measures in place, and the financial support structures available for such initiatives in five rural island communities off the Irish and Scottish coasts. The dissertation finds that many of the low-carbon initiatives taking place have significant potential for widespread replication. The biggest barrier to this is a lack of education and awareness amongst island communities of the potential benefits of pursuing a low-carbon development strategy and of the support structures that are in place to assist in the move towards green growth. Governments at both national and regional level must supplement the financial support they offer to communities for renewable energy generation and energy efficiency measures with adequate investment in the education of communities of the benefits of pursing a green growth strategy. By investing in education and maintaining and increasing support of low-carbon initiatives, these island communities can serve to act as “test-tubes” for low-carbon development strategies. By honing and refining the strategies that have been successful at microcosm level, governments can hopefully implement similar policies at regional, national and international level in the future and set the world on a development path with much lower carbon emissions.TRANSCRIPT
TOWARDS A ZERO-CARBON MICROCOSM ECONOMY:
A CASE STUDY OF RENEWABLE ENERGY AND ENERGY EFFICIENCY
INITIATIVES ON SMALL RURAL ISLANDS OFF THE SCOTTISH AND IRISH
COASTS WITH THE AIM OF IDENTIFYING THE INITIATIVES WITH THE
GREATEST POTENTIAL FOR REPLICATION ON SIMILAR ISLAND
COMMUNITIES
by:
BRIAN MCGONAGLE
AUGUST 2012
Submitted as part assessment for the degree of
Master of Science (MSc)
in
Climate Change: Impacts and Mitigation
School of Life Sciences
Heriot-Watt University, Edinburgh
DECLARATION
I, Brian McGonagle, declare that this dissertation submitted to the School of Life Science at
Heriot-Watt University, Edinburgh as part of my MSc Climate Change: Impacts and
Mitigation studies has been submitted as an original piece of research work. All research
contained within is entirely my own work with any external sources of information
acknowledged and referenced appropriately.
Signed: _______________
Brian McGonagle
Date: 24th
August 2012
TABLE OF CONTENTS
Contents: Page No.
List of Abbreviations pg i
List of Figures pg iii
List of Tables pg iv
Abstract pg v
Chapter 1 Introduction and Literature Review pg 1
1.1 Introduction pg 2
1.2 Climate Change – What is it? pg 4
1.2.1 Greenhouse Gases pg 4
1.2.2 The Climate Change Debate pg 5
1.3 The global effects of climate change pg 7
1.4 Efforts to tackle climate change pg 8
1.5 The move towards a zero-carbon economy pg 11
1.6 Challenges facing rural Island communities and their role in low-carbon
sustainable development pg 12
Chapter 2 Scope and Methodology pg 15
2.1 Scope of the review pg 16
2.1.1 Renewable energy and energy efficiency initiatives on rural Irish and
Scottish Islands pg 16
2.1.2 Financial support measures available for renewable energy and energy
efficiency initiatives pg 16
2.1.3 A “blueprint” for sustainable development on island communities pg 17
2.2 Methodology pg 17
2.2.1 Criteria for island selection pg 17
2.2.2 Secondary Information pg 17
2.2.3 Primary Information pg 18
2.3 Possible limitations of the study pg 19
2.3.1 The reviewed islands pg 19
2.3.2 The level of detail pg 19
2.3.3 Quality of information pg 19
2.3.4 Comparative difficulties pg 20
Chapter 3 The Move Towards a Low-Carbon Economy on Small Rural
Islands pg 21
3.1 Arainn Mhor Island (Republic of Ireland) pg 23
3.1.1 General information pg 23
3.1.2 Grid connection pg 23
3.1.3 Energy consumption and costs pg 24
3.1.4 Renewable energy pg 24
3.1.5 Energy efficiency pg 27
3.1.6 Finance pg 27
3.2 Isle of Eigg (Scotland) pg 29
3.2.1 General information pg 29
3.2.2 Grid connection pg 29
3.2.3 Energy consumption and costs pg 30
3.2.4 Renewable energy pg 30
3.2.5 Energy efficiency pg 31
3.2.6 Finance pg 32
3.3 Gigha (Scotland) pg 34
3.3.1 General information pg 34
3.3.2 Grid connection pg 34
3.3.3 Energy consumption and costs pg 35
3.3.4 Renewable energy pg 36
3.3.5 Energy efficiency pg 37
3.3.6 Finance pg 38
3.4 Westray (Scotland) pg 40
3.4.1 General information pg 40
3.4.2 Grid connection pg 40
3.4.3 Energy consumption and costs pg 41
3.4.4 Renewable energy pg 43
3.4.4.1 Westray Development Trust pg 43
3.4.4.2 Industry pg 44
3.4.4.3 Tidal Energy Leasing Round pg 45
3.4.5 Energy efficiency pg 45
3.4.5.1 Westray Fuel Poverty Project pg 46
3.4.5.2 Energy Action Westray pg 47
3.4.6 Finance pg 48
3.5 The Aran Islands (Ireland) pg 49
3.5.1 General information pg 49
3.5.2 Grid connection pg 49
3.5.3 Energy consumption and costs pg 49
3.5.4 Renewable energy pg 50
3.5.4.1 Inis Oir pg 50
3.5.4.2 Inis Meain pg 51
3.5.5 Transport pg 52
3.5.6 Energy Efficiency pg 53
3.5.7 Finance pg 53
Chapter 4 Financial Assistance and Fiscal Incentives for Renewable Energy
and Energy Efficiency Measures pg 55
4.1 Provisions for Renewable Energy Generation in Irish Policy pg 56
4.2 Ireland - Financial assistance and fiscal measures for renewable energy and
energy efficiency initiatives pg 57
4.2.1 Feed-In-Tariff pg 57
4.2.2 Tax Relief pg 58
4.2.3 Accelerated Capital Allowance Scheme pg 58
4.2.4 Rural Development Programme Fund pg 59
4.2.5 Grant Schemes pg 59
4.2.6 Bioenergy Establishment Scheme pg 59
4.2.7 Community Based Organisations (CBOs) pg 59
4.2.8 Carbon Tax pg 60
4.3 Scotland - Financial assistance and fiscal measures for renewable energy and
energy efficiency initiatives pg 62
4.3.1 Renewable Heat Energy Payment pg 62
4.3.2 Home Renewable Loan scheme for renewable heating systems only pg 62
4.3.3 Feed-In-Tariff Scheme (FITs) pg 63
4.3.4 Rates relief for renewable energy generators pg 64
4.3.5 CARES Loan Fund pg 65
4.3.6 CARES Rural Business Loans pg 65
4.3.7 Community Renewable Energy Support Scheme pg 66
4.3.8 Carbon price-floor pg 66
4.3.9 Renewable Obligation Certificates (ROCs) pg 67
4.4 Funding at EU level pg 67
4.4.1 The European Energy Efficiency Fund (EEEF) pg 67
4.4.2 The Intelligent Energy Europe Programme (IEE) 2007-2013 pg 68
4.4.3 EU Structural and Cohesion Funding 2007-2013 pg 68
4.4.3.1 INTERREG IVC Programme pg 69
4.4.4 Northern Periphery Fund 2007-2013 pg 69
4.4.5 LIFE + 2007 -2013 pg 71
4.4.6 European Agricultural Fund for Rural Development (EAFRD)
2007-2013 pg 71
Chapter 5 Part I: Low-Carbon development strategies on island communities:
Environmental, Economic and Social Benefits pg 72
5.1 The success of renewable energy and energy efficiency measures on
the islands pg 73
5.2 Environmental Benefits pg 74
5.2.1 Reducing the carbon footprint of island communities pg 74
5.2.1.1 Potential for replication pg 75
5.2.2 Electric Vehicles (EVs) on the Aran Islands pg 76
5.2.2.1 Potential for replication pg 77
5.3 Economic and Employment benefits pg 77
5.3.1 Economic benefits from community renewables pg 77
5.3.1.1 Potential for replication pg 78
5.3.2 Additional economic benefits from a low-carbon development
strategy pg 80
5.4 Social benefits pg 82
Part II : Summary table of successful carbon reducing initiatives pg 85
5.5 Summary pg 95
Appendix A Questionnaire used in primary research phase of island study pg 96
Appendix B Case study: Samsø – Renewable Energy Island pg 104
Appendix C Examples of Life+ projects in Ireland pg 108
Appendix D Contact details for relevant organisations, sources of funding and island
development committees pg 110
Appendix E Irish Government Programme for Government – Green jobs pg 115
Appendix F Arainn Mhor sustainable development goals pg 116
Appendix G Elephant Grass on Bere Island pg 117
Appendix H Examples of Community Renewable Projects in Ireland pg 118
ACKNOWLEDGEMENTS
I would firstly like to record my sincerest gratitude to my supervisor, Professor James Mair,
for his guidance and advice at all stages of the dissertation process and throughout the rest of
my MSc studies.
I am greatly indebted to the representatives from the island communities that form the focus
of this dissertation. In particular I wish to record my gratitude to the following people:
Ian Leaver, Isle of Eigg Heritage Trust
Lukas Lehman, Isle of Gigha Heritage Trust
Noirin Ni Mhaoldomhnaigh, Arainn Mhor Cooperative
Dara Molloy, Inis Mor Energy Committee
Colin Risbridger, Westray, Orkney Renewable Energy Forum
A wide range of information was also gathered from other island communities and relevant
stakeholders and organisations. While not explicitly detailed in the research, this information
was an invaluable part of the learning process. I would like to acknowledge in particular the
advice and help of Micheal Cecil (Rathlin Island), Dr.Sandy Kerr (Heriot-Watt University,
Orkney Campus), Maggie Fyffe and John Booth (Eigg Heritage Trust and Eigg Electric).
I would also wish to record my sincerest gratitude to my employers at the Department of
Public Expenditure and Reform, and Georgina Hughes-Elders in particular, for their support
and understanding during the dissertation process.
Finally I wish to express my thanks to my girlfriend, Emer, and my family for their patience
and support during my research studies.
LIST OF ABBREVIATIONS
AfL Agreements for Lease
ANM Active Network Management
BER Building Energy Rating
BMW Border Midlands and Western
BTS Below Tolerable Standard
CAP Common Agricultural Policy
CARES Community and Renewable Energy Scheme
CBOs Community Based Organisations
CER Commission for Energy Regulation
CFL Compact Fluorescent Lightbulbs
CHP Combined Heat and Power
CH4 Methane
COP16 Conference of the Parties
CRESP Community Renewable Energy Support Programme
DCENR Department of Communications Energy and Natural Resources
EAFRD European Agricultural Fund for Rural Development
EEEF European Energy Efficiency Fund
EIA Environmental Impact Assessment
ERDF European Regional Development Fund
ESB Electricity Supply Board
ESCOs Energy Service Companies
ESF European Social Fund
ESRL Earth System Research Laboratory
EU European Union
EV Electric Vehicle
FIT Feed-in Tariff
GDP Gross Domestic Product
GHGs Greenhouse Gases
HES Home Energy Saving
HIE Highlands and Islands Enterpise
IEA International Energy Agency
IEE Intelligent Energy Europe
IPCC Intergovernmental Panel on Climate Change
kV Kilovolt
kW Kilowatt
kWh Kilowatt Hours
LEADER Liason Entre Actions pour le Development D’Economice Rurale
MW Megawatt
NHER National Home Energy Rating System
NOx Nitrogen Oxide
OECD Organisation for Economic Co-Operation and Development
PPM Parts Per Million
PV Photovoltaic
REFIT Renewable Energy Feed-in-tariff
ROC Renewable Obligation Certificate
SAP Standard Assessment Procedure
SEAI Sustainable Energy Authority Ireland
SEM Single Electric Market
SSER Scottish and Southern Energy Renewables
UNFCC United Nations Framework Convention on Climate Change
WDT Westray Development Trust
WRE Westray Renewable Energy
LIST OF FIGURES
Figure 1 Historic atmospheric CO2 levels at Mauna Loa Observatory, Hawaii
Figure 2 The “hockey-stick” phenomenon showing historic temperature records for the
Northern Hemisphere
Figure 3a Ireland’s GHG abatement cost-curve – Reference scenario 2030
Figure 3b Ireland’s GHG abatement cost-curve – High oil-price ($120 per barrel)
scenario 2030
Figure 4 The technological mix required to meet EIA 2050 target
Figure 5 Decline in Irish large-island population
Figure 6 Map of islands included in study
Figure 7 Map of current grid network in Orkney Islands
Figure 8a Breakdown of household energy survey using SAP ratings
Figure 8b Breakdown of household energy survey using NHER ratings
Figure 9 Map of CBO network in Ireland
Figure 10 Northern Periphery Programme countries
LIST OF TABLES
Table 1 Fuel consumption by type, quantity used and cost on Arainn Mhor
Table 2 Energy contribution to overall Eigg supply by source
Table 3 Renewable Energy Initiatives on Eigg
Table 4 Sources of finance for Eigg Electrification and associated initiatives
Table 5 Energy costs (2010) by fuel type for properties owned by Gigha Heritage
Trust
Table 6 Funding by type, source and amount for “Dancing Ladies” development
Table 7 Energy produced (MWh) by Westray turbine in first 12-months of operation
Table 8 Ireland REFIT scheme – Price (€) per MWh
Table 9 Levels of Renewable Heat Energy Payment available
Table 10 Feed-In-Tariff Levels (FITs) as of April 2012
ABSTRACT
Climate change and the global financial crisis are arguably the greatest challenges facing
humanity today. Across the world, communities are feeling the effects of a change in climatic
conditions that is being accredited to increased anthropogenic emissions since the Industrial
Revolution. Those most at risk to the effects of climate change are developing countries,
many of whom in addition to this issue have to face multiple other stresses of famine, poverty
and war. In other parts of the world, it is socio-economic challenges that are crippling once
thriving communities. This is particularly true in the case of small rural island communities
off the Irish and Scottish coasts where traditional industries have disappeared bringing with
them large segments of island populations who are being forced to emigrate due to the lack of
economic opportunities. This dissertation identifies the measures taking place in small island
communities that, through the pursuit of low-carbon development, can attempt to address
both the issue of climate change mitigation and the dwindling socio-economic opportunities
on rural island communities.
Through extensive qualitative research, the study develops a detailed description of the
characteristics of traditional energy supply, the renewable energy and energy efficiency
measures in place, and the financial support structures available for such initiatives in five
rural island communities off the Irish and Scottish coasts. The dissertation finds that many of
the low-carbon initiatives taking place have significant potential for widespread replication.
The biggest barrier to this is a lack of education and awareness amongst island communities
of the potential benefits of pursuing a low-carbon development strategy and of the support
structures that are in place to assist in the move towards green growth. Governments at both
national and regional level must supplement the financial support they offer to communities
for renewable energy generation and energy efficiency measures with adequate investment in
the education of communities of the benefits of pursing a green growth strategy. By investing
in education and maintaining and increasing support of low-carbon initiatives, these island
communities can serve to act as “test-tubes” for low-carbon development strategies. By
honing and refining the strategies that have been successful at microcosm level, governments
can hopefully implement similar policies at regional, national and international level in the
future and set the world on a development path with much lower carbon emissions.
CHAPTER ONE
INTRODUCTION AND LITERATURE
REVIEW
1.1 Introduction
For the past thirty years the debate over climate change and the role of mankind in its
existence has continually ebbed and flowed between the extremes of climate-change deniers
and sceptics to the doomsday scenario predicted by some enthusiasts. In the past decade, a
large body of scientific evidence has come to light that appears to suggest that anthropogenic
greenhouse gas emissions (GHGs) are causing changes to the climate out-with natural
climatic cycles (Stern, 2006, p.(xiii)).
The impact of this changing climate on the global environment, economy and everyday life is
a defining issue of our era (OECD, 2008, p.3). Each day of inaction only serves to make its
consequences more irreversible. Action is required now. Identifying the optimal strategy to
best help mitigate the impacts of, and adaptation to, climate change is extremely difficult.
Climate change is a problem with unique characteristics. It is global in its causes and
consequences and requires complex interactions and collaborative action across all sectors
and all nations to drive an effective, efficient and equitable response on the required scale
(Metz et al., 2001, p.3). Ultimately, a combination of practical solutions, economic tools and
policy action offers the greatest potential for minimising the impacts of climate change.
Through the Kyoto Protocol, the UNFCCC has brought GHG emissions control to the top
table of global politics. Sadly the political will required for full implementation of the
Protocol has been found wanting in many countries. This economic and policy inaction by
governments at a national and international level has prompted many communities into taking
immediate action of their own to help combat climate change.
Across the world, these communities are embracing cleaner energy and are striving to create
lower-carbon economies. While there are obvious long-term moral reasons for attempting to
halt climate change and reduce the environmental debt burden for future generations,
promoting the development of renewable energy can have immediate and significant effects
on the lives of people today. In some of the poorest parts of the world (i.e. sub-Saharan
Africa) the opportunities offered by solar energy could help such regions emerge from the
abject poverty that they suffer if developed and utilised responsibly (Metz et al., 2001. p.11).
Due to the global nature of climate change and its’ impacts, mitigation does not solely need
to take place in the vulnerable areas of the world that will suffer most. The developed world
is responsible for the majority of the historical emissions in the atmosphere and so these
nations have a responsibility to try and mitigate against the future impacts of climate change
on more vulnerable countries.
This study focuses on the development of renewable energy and energy efficiency schemes in
rural island communities off the Scottish and Irish coasts. Life on many of these islands, their
history and their traditions are on the cusp of extinction as the lack of social and economic
opportunities makes life for inhabitants, particularly young people, extremely difficult.
But while peripherality has been the downfall of these island communities in recent history,
their geographical location and natural characteristics in many cases presents unique access to
abundant and potentially extremely valuable renewable energy resources which, if exploited
appropriately, could reverse population decline and allow these islands to flourish again. By
analysing the initiatives across a range of islands I hope to identify and compile in a table the
initiatives with the greatest potential for replication in similar island communities. These
measures could help island communities strive towards a zero-carbon microcosm economy
that can offer opportunities to revitalise island life and reverse years of population decline
and desertion whilst simultaneously helping to mitigate the effects of climate change for the
world’s most vulnerable people.
1.2 Climate Change – What is it?
Our climate is and always has been changing. These changes are etched in our landscape and
underpin our economic and social history (Burroughs, 2007. P.1). But while the natural
variations in global climate are widely recorded and studied, it is the departure from these
natural variations in the past century that has become the fulcrum of the modern climate
change debate.
1.2.1 Greenhouse Gases
Studies in the field of climate science today focus on the correlation between the rapidly
changing climate and the levels of GHG emissions in the atmosphere which continue to
enhance the greenhouse effect1. CO2 emissions have been monitored at Manua Loa, Hawaii
(Figure 1) and other sites across the world since 1958 (Burroughs, 2007, p.211). When cross-
checked for accuracy and combined with historical ice-core data the records show that CO2
levels have risen from 280ppm2 in the pre-industrial period to 396 ppm in 2012 (ESRL,
2012). Analysis of CO4, NOx and other important GHG concentrations show a similar trend
of significant increases from pre-industrial era through to today (Burroughs, 2007, p.211).
1The greenhouse effect is the trapping of solar radiation within the earth’s atmosphere by a layer of GHGs. This
layer is enhanced by the burning of fossil fuels.
2PPM – parts per million. Standard measurement technique for dilute concentrations of substances
Figure 1 Historic atmospheric CO2 levels at Mauna Loa Observatory, Hawaii
Source: ESRL, 2012
1.2.2 The climate change debate
While the majority of the scientific community accepts that the concentration of GHGs in the
atmosphere since the Industrial Revolution has increased, there is a large body of climate
change sceptics who refuse to acknowledge any correlation between increased atmospheric
GHG emissions and increasing global temperatures. In 2001 however, the IPCC concluded
that there was now a significant bank of evidence to support the theory that most of the global
warming observed over the previous 50 years was attributable to human activities (IPCC,
2001). The relatively sudden increase in global temperatures is most commonly represented
as the “hockey stick” phenomenon, first shown by Mann et al. (1999) (see Figure 2).
The hockey-stick diagram shows relatively stable temperatures from the year 1000 through to
1900. At this juncture there appears to be a distinctly sharp increase in global temperatures.
Many interpret the “hockey stick” representation as definitive evidence of the human
influence on the climate due to the visual correlation between the higher global temperatures
and the increased atmospheric GHG emissions.
As previously alluded to, the phenomenon is not without its critics however and many studies
and papers have been written that disparage Mann’s findings. The foremost critics of this
historical temperature representation, such as von Storch et al. (2005, p.24), emphasise that
accurate and verifiable temperature records have only existed for approximately the past 150
years and that the use of proxy variables such as tree-rings, ice-cores and coral formation
cannot be relied upon as completely accurate measurements of historical temperature.
Figure 2 The “hockey-stick” phenomenon showing historic temperature records for the Northern
Hemisphere
Source: ESRL, 2012
What cannot be denied is that the levels of anthropogenic CO2 emissions since the Industrial
revolution are unprecedented in the history of the world. From this period productivity and
efficiency increased dramatically as production of goods shifted from the home into factories.
As a result of this intensification of production, atmospheric concentrations of GHGs began
to increase dramatically. Since the Industrial Revolution, concentrations of carbon dioxide
have increased by nearly thirty-per cent, concentrations of methane have more than doubled,
and nitrous oxide concentrations have risen by about fifteen per cent (EPA in Martinez, 2005,
p.407). All of these gases are released through the burning of fossil fuels which have been the
primary energy sources used to operate cars and trucks, heat homes and businesses, and run
factories since the industrial revolution.
1.3 The global effects of climate change
While the effects of climate change are felt everywhere, the degree of severity of the impacts
are heavily balanced against the impoverished developing countries whose populations are
already living on or close to the margins of survival (Stern, 2006, p.105).
Sub-Saharan Africa, for example, is one of the world’s most fragile and vulnerable regions to
climate change and variability. The situation here is aggravated by the interaction of
“multiple stresses” of poverty, famine, harsh environmental conditions, dysfunctional
institutions and internal and external conflict occurring at various levels in the region (Boko
et.al, 2007).
Rising sea-levels, advancing desertification and other climate driven changes could drive
millions of people in the developing world to migrate from their homes. The Stern Review
(2006, p.104) emphasises these concerns by highlighting that over one-third of Bangladesh
will be under water with a one-metre sea-level rise. Developing countries dependence on
agriculture is yet another reason why these regions will be the most severely affected by any
climatic variations. 21% of Indian GDP, 39% of Malawian GDP and 61% to 64% of sub-
Saharan African and South-East Asian GDP respectively is reliant on agriculture
(International Labour Office, 2005). The failure of monsoon rains or the arrival of flood
waters can decimate a farmer’s food stock and long-term revenue supply.
1.4 Efforts to tackle climate change
Developing a response to climate change is one of the world’s most pertinent questions at this
current time. Solutions to climate change have to be both proactive and reactive. Regardless
of the measures to be taken, the economic outlay required will be huge. The economic impact
of climate change has already reached astronomical proportions and will only increase in the
future unless fundamental societal changes take place. For example, if the world is to achieve
the 2oc by 2050 target, the amounts of funding needed annually to mitigate and adapt could
range between $600 and $1,500 billion a year (Montes, 2012). It is important that the world is
made aware that the costs involved in developing a response to climate change will be much
less if they are incurred now to undertake proactive as opposed to being spent on reactive
adaptation measures in the future (Montes, 2012).
While there is very little that can be done to change the level of emissions currently in the
atmosphere, the developed world must accept responsibility for its historical actions. By
participating in global measures to help mitigate climate change, and adaptation measures to
help protect those most vulnerable from its effects, we can minimise the future impact of the
changing climate.
Global efforts through the UNFCCC to stimulate sufficient climate finance to aid adaptation
and mitigation has been undermined by the global financial crisis. $100bn per annum by
2020 was pledged by developed countries at COP16 in Copenhagen in 2011 but appears to
have hit a buffer already with many developed countries reneging on their commitments
(UNFCCC, Bonn, 2012). An equitable solution in the form of a global agreement to work
towards the common goal of reducing global emissions through long-term mitigation
measures and minimising the effects of climate change through adaptation measures is
rapidly required.
At individual country level efforts are also being made to raise the awareness of, and develop
optimal responses to, climate change issues. In 2009, Scotland produced its Climate Change
Bill which specified a target to reduce its emissions by 42% by 2020 and 80% by 2050
(Scottish Government, 2009). Ireland’s climate bill is in process of being developed but due
to the need for fiscal consolidation as part of the EU/IMF programme it has somewhat fallen
down the pecking order of Government priorities.
Many countries have developed GHG abatement cost-curves that highlight the most cost-
effective measures that can contribute to the mitigation of climate change. We can see from
Ireland’s curve in Figure 3a and 3b that energy efficiency measures offer the greatest
opportunities and return for climate change mitigation, with onshore wind proving to be the
most cost-effective renewable energy technology.
Figure 3a Ireland’s GHG abatement cost-curve – Reference scenario 2030
Source: SEAI, 2009
Figure 3b Ireland’s GHG abatement cost-curve – High oil-price ($120 per barrel) scenario 2030
Source: SEAI, 2009
1.5 The move to a zero carbon economy
If the efforts to move towards a zero-carbon economy are to be successful countries must be
convinced of the financial benefits of pursuing green-growth. In order to decarbonise
industry, homes, electricity generation and transport systems sufficiently we will need to
“power-down” our current high-carbon living (Zero Carbon Britain, 2010). To do this
demand needs to be reduced to facilitate a move to a supply side free of fossil fuels. The non-
climate related benefits of reduced carbon from an economic and societal transformation need
to be emphasised to garner public support. This regime change grants the opportunity to
reduce the global exposure to depleting fossil fuel resources, allows for the creation of a more
equitable society and could accommodate an economic revolution through the pursuit of
green-growth.
Figure 4 The technological mix required to meet EIA 2050 target
Source: IEA “Blue Map Scenario” (2010)
The IEA’s “Blue Map Scenario” (Figure 4) identifies the technological mix that will be
needed to meet their 50% CO2 emissions reduction target by 2050. While the IEA’s target
may be extreme and unrealistic, it outlines the type of technological requirements and in
particular the role that renewable energy and energy efficiency measures will have to play in
a lower-carbon future.
Various studies have identified the potential of renewables at national, EU and international
level. Jacobson and Delucchi (2009) claim that 100% of the world’s energy needs can be met
by renewable generation by 2030, while the European Wind Energy Technology Platform
(2006) demonstrates that the economically competitive potential of wind generation in
Europe is seven times the projected electrical demand for 2030. The varying figures
published serve to highlight the difficulties in quantifying the precise contribution renewable
energy can make to future energy demands. While they may not agree on precise figures,
they all share the common theme that renewable energy has a hugely significant role to play
in helping us meet future energy demands and help mitigate against future climate change.
1.6 Challenges facing rural Island communities and their role in low-carbon
sustainable development
Small island communities, regardless of their location throughout the world, face many
similar challenges. Issues of isolation, peripherality, reliance on importation of resources,
inadequate levels of market demand and supply to maintain sufficient business and enterprise
activity, etc., are faced by all small island communities to some extent. In the case of Irish
and Scottish islands, the biggest challenge in recent times has been the mass emigration from
island communities due to the absence of economic and social opportunities (see Figure 5).
As outlined in the Arainn Mhor Development Plan (2008), the future of small rural island
communities depends on maintaining a permanent resident population, and perhaps more
importantly a young and vibrant population, on the island.
Figure 5 Decline in Irish large-island population
Source: Arainn Mhor Development Plan (2008)
In recent years some governments have begun to see the potential of looking at islands as
microcosm economies where development strategies can be tested. Kerr (2005, p.504) points
this out when he says that, “due to the clarity of boundaries…and insular characteristics,
islands can provide a very useful laboratory for testing theories of sustainable development.”
One such island which has been implementing innovative sustainable development strategies
for over 15 years is the Danish island of Samsø3. Samsø has been working with renewable
energy since 1997 and the islands’ inhabitants have developed several successful projects and
have established Samsø as an internationally renowned renewable energy island (Pact of
Islands, 2011).
During this time the island’s CO2 emissions have been reduced by 140%. Through the
exportation of renewable energy from wind turbines, CO2 emissions for Samsø’s population
3 Case study of Samso available in Appendix B
are minus 2 tonnes per capita each year. Not content with this Samsø has now set a new goal
to become entirely fossil-free by 2030 (Pact of Islands, 2011).
With the case of Samsø, the precedent is somewhat set for a move to zero-carbon island
economies. Over the coming chapters I will look at the sustainable development efforts being
made on some rural island communities off the Scottish and Irish coasts. I will then provide
details on the sources of finance that are available to these regions and finally outline the
greatest areas of opportunity that these island communities could exploit going forward.
These opportunities could prove to be the catalyst in the regeneration of rural island life while
providing the outside world with a vital test-tube within which they can hone their future
green development strategies.
CHAPTER TWO
SCOPE AND METHODOLOGY
2.1 Scope of the review
2.1.1 Renewable energy and energy efficiency initiatives on rural Irish and Scottish
Islands
The primary focus of this study is to evaluate the various initiatives being implemented in
rural island communities off the Scottish and Irish coasts as they aim to transform their
economies from being energy intensive and import-reliant communities to becoming low or
zero carbon economies with the potential to export their valuable renewable resources.
The review of each island and its initiatives aims to include the following considerations:
The island and its physical characteristics
Energy consumption and the cost of energy on the island
Details of the grid connection or local grid network
Details of the renewable energy and energy efficiency measures taking place on the
island
An outline of the sources and amounts of finance received by the islands to implement
the initiatives.
2.1.2 Financial support measures available for renewable energy and energy efficiency
initiatives
I will also conduct an analysis of the financial support measures that are available for island
communities at national and European level. This will be supplementary to the overall
findings and recommendations of how the islands can try to move to a low-carbon economy.
2.1.3 A “blueprint” for sustainable development on island communities
After completion of the island review I will analyse the most successful projects on the island
communities and the success of other schemes around the world and outline how these
initiatives have the potential to be replicated by similar island communities.
2.2 Methodology
2.2.1 Criteria for island selection:
The focus of this study is on relatively small rural islands who have suffered the most from
dwindling economic opportunities and emigration and so the network of islands selected
range in population from approximately 28 – 1200. Due to the extensive amount of
information gathered during research I had to limit my focus to just five island communities.
These islands all have similar long-term sustainable development plans but are at differing
stages of the process and so they make for interesting comparisons. The islands included in
my study are:
Eigg, Gigha and Westray in Scotland
Arainn Mhor and the Aran Islands in Ireland.
2.2.2 Secondary information:
The first research phase of the study involved the gathering of secondary information from
existing sources on renewable energy and energy efficiency schemes on rural island
communities and the assembling of all relevant information on financial and practical
assistance available to island communities for carbon-reducing schemes. The information
gathered at this stage came from government departments and semi-state agencies, the
European Commission, island community groups and various academic studies. The internet
provided the largest source of material but various publications (books, journal reports, etc.)
available at Heriot-Watt University Library and Trinity College Dublin Library were also
used as sources.
2.2.3 Primary information
While the secondary information provided very important background material, it was
essential for the quality of my study to obtain primary information from the islands
concerned. This task was performed using two methods:
(i) The island-specific information that was required for my study was obtained
by the distribution of a questionnaire4 and conducting of interviews with those
involved in development committees on the participating island communities.
(ii) Using the contact network that had been established during preliminary
research I visited some of the islands to see for myself the initiatives in action,
to compare the similarities and differences between each islands programme
and to gather additional information that may not be easily conveyed via the
questionnaire and interviews.
A second stage of primary research was required when gathering information on the financial
support available from the various sources. This involved direct communication with EU and
domestic government departments who provided details and links to relevant sources of
information.
4 Questionnaire included in Appendix A
2.3 Possible limitations of the study
2.3.1 The reviewed islands
The islands considered for this study were chosen due to their characteristics of relatively low
populations, geographical location on the western seaboards of Ireland and Scotland and their
similar socio-economic characteristics. They cannot however be considered to be exhaustive
or representative of all the islands or renewable energy initiatives in the study region.
2.3.2 The level of detail
There is a variation in the level of information detail presented for some of the islands in this
study. For some of the islands there was a detailed response obtained containing specific
details in response to all of the questions that I had posed, whereas for others there was a
more of a general overview of the island’s development strategy provided. Where detailed
information may not have been provided efforts were made to obtain information from
secondary sources but in some cases this was not possible.
2.3.3 Quality of information
While every effort has been made to ensure the quality and detail of the information used,
there is an awareness that due to the inability to cross-check the data there may be some
errors in the data provided. Where possible, data has been cross-checked and secondary
source data has only been obtained from reputable and verified sources.
2.3.4 Comparative difficulties
Whilst the islands in the study possess many similar features, they are individually unique
with characteristics that cannot be compared. Due to specific geographic characteristics, the
initiatives taking place can differ between the islands i.e. High terrain on Isle of Eigg
accommodates hydro power development. Because of the differences between each island it
is difficult to make a like-for-like comparison.
CHAPTER THREE
THE MOVE TOWARDS A LOW-CARBON
ECONOMY ON SMALL RURAL ISLANDS
Figure 6 Map of Islands included in study
Source: Scribble Maps, 2012.
3.1 Arainn Mhor Island (Republic of Ireland)5
3.1.1 General Information:
Population6: 522
Jurisdiction: County Donegal
Area7: 18.1km
2
Ownership structure: All private landowners
3.1.2 Grid-connection
Arainn Mhor Island is connected to the mainland at Burtonport via a 10kV cable connection.
This connection provides reliable electricity supply to the island at competitive per-unit
prices much cheaper than on islands where diesel generators are relied upon for electricity
generation. Although no plans have been made for an upgrade of the connection to the
mainland, the Arainn Mhor Development Plan 2008-2013 makes explicit reference to the
potential capacity of the island to export renewable energy to the grid via connection to the
new 100kV power-line which will travel along the west coast of county Donegal. It is
acknowledged that the capacity of any proposed renewable energy generation project would
need to be very large in order to economically justify the provision of higher capacity
transmission cables.
5 Arainn Mhor Sustainable Development goals available in Appendix E
6 Population at the time of most recent island census in 2006
7 Note that all island areas are given in km
2 as the metric system is what is used in my native country, Ireland.
3.1.3 Energy consumption and costs
Although connection to the mainland grid provides access to electricity at competitive prices
for the island’s citizens, the annual ESB power cost (see Table 1) for the island is in the
region of €1 million (Arainn Mhor Development Plan, 2008). Another large portion of annual
island energy expenditure is on fuel oil imported from the mainland for use in domestic
heating and transport.
Turf (peat) is used extensively on the island to generate domestic heat. The use of turf is very
economical but has a significant negative impact on the environment as a result of CO2
release during excavation and combustion. The economic viability of turf-burning may be
tested in the coming years with plans being drawn at European level to place a heavy tax or a
complete ban on its excavation and use for domestic heating purposes.
Table 1 Fuel consumption by type, quantity used and cost on Arainn Mhor
3.1.4 Renewable Energy
Renewable energy initiatives on the island have had minimal success thus far with one house
installing a geothermal eating facility and one other installing a domestic wind-turbine. The
enhancement of the renewable energy sector is one of the key focus points of the Arainn
Mhor Development Plan8. Communication links and visits have already been made to similar
island communities on the western coast of Scotland (Eigg and Gigha) and some Danish Isles
to enhance knowledge sharing and generate ideas that could be exploited on the island. Some
of the initiatives that have been identified by the Arainn Mhor Community Development
Group as having the most potential for implementation on the island are at micro-level
through installation of domestic solar panels and wood burning stoves similar to the
initiatives in the Aran Islands.
Large areas of land on the east side of the island have been left fallow with the decline in
agricultural activities on the island in the past thirty years. The island’s development plan
recognises that this area could have potential for the growing of willows and grasses for use
in the creation of biomass power, an initiative that has been extremely successful on Bere
Island off County Cork9. The growth and harvesting of these biofuels could fuel wood boilers
on the island, creating a renewable source of heat power.
Given the island’s location, wind energy could offer an efficient and economically viable
means of creating energy and employment. With an uninhibited access to wind, Arainn Mhor
has a resource that if developed appropriately could provide a socio-economic lifeline to the
island in addition to reducing the island’s carbon footprint. Donegal County Council is
currently upgrading the electricity infrastructure along the west of the county with a 110kV
transmission line being put in place. Providing that Arainn Mhor could improve its
connection to the mainland grid, the access to this 110kV transmission line would
accommodate the mass exportation of excess clean energy from the island to the grid.
Two enquiries have already been received by the island’s cooperative from wind-energy
companies, with one of the proposals involving plans to form a partnership with the
8 See Appendix F for Sustainable Development section of Arainn Mhor development plan
9 See case study of Bere Island in Appendix G
community to develop the resource. The case of community renewables in Scotland10
shows
that such partnerships can be mutually beneficial and provide significant socio-economic
opportunities for isolated communities. The Arain Mhor Development Plan 2008 – 2013
commissioned a wind-energy feasibility study for the island to take place, the results of
which have not yet been made available11
.
The western uplands of the island provide the best wind speed, the farthest distance from
dwellings and are outside the cliff margin SAC and NHA designations. As is the case in
many of the Irish island communities however, land ownership is the biggest constraint to
any potential development. Almost all of the land in the identified region has over 200
commonage holders with the hope of obtaining consent from all virtually impossible.
If wind power could be generated en-mass on the island it would also create opportunities for
the use of hydro-power, which could potentially act as a store of excess energy created. The
island has several high-level lakes that could facilitate the generation of hydro power but
concerns over fisheries at local level may cause complications on this front.
At domestic level demonstration renewable energy projects such as solar PV and solar
thermal could be carried out at Baile Saoire12
. The island development plan also stipulates
that contractors undertaking the renovation of buildings or the development of new builds
should be advised to incorporate renewable technologies and more importantly energy
efficiency measures to achieve the highest building energy rating (BER) possible.
10
See case of Fintry in 5.3.1.1 11
Canavan Associates (Derry) carried out consultancy work on the renewable energy potential on Arannmore but were unable to release the information to me in time for completion of this study. 12
Baile Saoire is a community owned facility where energy costs are prohibitive as the building is old and is heated entirely from electricity.
3.1.5 Energy efficiency
As mentioned in 3.1.4, the island development plan highlights the importance of promoting
efforts to achieve the highest BER rating possible, giving due consideration to cost-
effectiveness, when renovating old buildings or developing new builds. The 2006 Household
Socio-Economic Survey conducted on the island identified the significant improvements in
domestic energy efficiency since the previous study in 1992. The most common energy
saving features were double-glazing of windows, attic insulation, lagged hot water tanks and
cavity wall insulation. Of the households surveyed, over 67% had attic insulation and lagged
hot water tanks in 2006 compared to only 33% in 1992, while 67% of the households
surveyed also had double-glazing in 2006 as opposed to just 11% in 199213
.
3.1.6 Finance
While there has been minimal implementation of renewable energy technologies on the island
thus far, the Arrain Mhor Island Development Plan 2008 – 2013 has identified a list of
sources for potential financing if required. These sources include:
The Department of Arts, Heritage and the Gaeltact14
Udaras na Gaeltechta15
Comhdháil Oileáin na hEireann16
EU initiatives administered by bodies such as ManagEnergy and ISLENET
13
Results available in the Arranmore Development plan 2008 – 2013 available online at: http://www.arranmoreco-op.com/classified/englishplan.pdf 14
Referred to in the Arannmore Development Plan by its previous name, the Department of Community, Rural and Gaeltacht Affairs 15
Udaras na Gaeltachta are a regional state agency with responsibility for the economic, social and cultural development of Irish-speaking (Gaeltacht) regions of Ireland. 16
The Irish Islands Federation
EU funding programmes such as the ALTENER II Programme with opportunities
under the INTEREG IV.
Sustainable Energy Ireland
3.2 Isle of Eigg (Scotland)
3.2.1 General Information:
Population: 8917
Jurisdiction: Highland Region
Area: 29.78km2
Ownership structure: Isle of Eigg Heritage Trust
3.2.2 Grid-connection
The Isle of Eigg has no connection to the mainland electricity grid. In 1997, the Eigg
Heritage Trust18
conducted a community buyout of the island. From this stage they began to
identify strategies to halt the deteriorating socio-economic conditions for the residents.
Following a consultation and feasibility study, Senergy EConnect19
produced an outline
design and budget for the implementation of a micro-grid in October 2004.
By May 2006 funding for the development had been obtained and the design phase
commenced with construction completed in February 2008. The relatively large size of Eigg
and the sparse population made the grid network development quite complex with
approximately 11km of high-voltage cabling and a large inverter and battery system required
to facilitate the 3.3kV network. A further issue faced during the micro-grid development was
17
Population figure accurate as of June 2012, provided by Eigg Heritage Trust 18
Eigg Heritage Trust was formed by island residents, the Highland Council and the Scottish Wildlife Trust 19
Senergy EConnect, 2007. Smart Grids implemented on Scottish Islands. Accessed online via: www.senergyworld.com/Econnect/smart_grids_and_mobility.ppt
the range of renewable energy sources that the grid had to be compatible with i.e. hydro,
wind and solar PV (EConnect, 2007).
3.2.3 Energy consumption and costs
Energy consumption on Eigg has shown a marked transformation in the past 15 years. The
dependence on diesel for energy generation (see Table 2) has fallen to less than 10%
compared with over 80% before the renewable energy initiatives were implemented20
(Ashden Awards, 2010). Nevertheless, the island’s two diesel generators continue to play an
important role in the provision of reliable back-up power.
Table 2 Energy contribution to overall Eigg supply by source21
3.2.4 Renewable Energy
Since the inception of the Isle of Eigg Heritage Turst, the island has reduced household
carbon emissions by 47%, from 8.4 to 4.45 tonnes per year (Ashden Awards, 2010). Central
to this achievement has been the successful installation of a range of renewable energy
technologies (see Table 3) to feed into the local electricity grid. The majority of the island’s
power is provided by a 99kW micro-hydro system, backed up by 10 kW of solar PV power
and 24 kW of wind-power, coming from four separate 6kW turbines. Smoothing energy
20
Note that the 17% figure for diesel contribution to overall supply in the table includes the use of diesel for transport 21
All data and table information obtained from Eigg Heritage Trust and Eigg Electric.
demand and supply is a very important feature of the electrical grid on Eigg and this is done
using lead-acid batteries that store surplus energy and so accommodates the provision of a 24
hour electricity supply.
Table 3 Renewable Energy Initiatives on Eigg
3.2.5 Energy efficiency
Shortly after the installation of the micro-grid, the Eigg Heritage Trust and Eigg Electric
realised that electricity demand would have to be managed in order to minimise the reliance
on the back-up diesel generator on the island. In order to achieve this target, a 5kW daily
demand cap is placed on domestic customers, and a 10kW cap put on businesses and
commercial premises. All households and businesses have OWL22
meters installed that
displays both current and cumulative electricity usage and notifies the user when
consumption comes within range of the pre-defined limit. Through the various measures
Eigg’s residents have gained a keen awareness of the energy intensity of their domestic
behaviour and are thus able to minimise their energy consumption.
22
OWL is a leading model of wireless electricity monitor
Another demand control initiative is the warning system in place when the renewable energy
sources cannot meet demand and the back-up diesel generators are called into action. On such
“red-light days” the islands inhabitants amend their electricity demand accordingly until the
sustainable level of demand is reached and the “green light” returns.
Traditional energy efficiency measures have also been implemented such as the refitting of
inefficient boiler systems, installation of loft and wall insulation, solar water heating23
, etc.,
while new energy sources are being piloted such as the sustainable harvesting of biomass for
use in domestic heating.
3.2.6 Finance
The energy efficiency measures being implemented on Eigg are financed through various
means (see Table 4). The Heritage Trust has insulated all of the properties it owns at no cost
to the tenants while private properties have self-financed any measures they have taken in
their own properties. The provision of solar water heating will take place using the same
financial structure.
Eigg residents have additional access to a Green Grant scheme operated through the Trust.
Under this scheme, residents can claim up to 50% of the cost of any equipment24
which
reduces carbon emissions, up to a £300 limit.
During construction of the island’s micro electricity grid, island residents contributed to the
installation costs by paying £500 for a 5 kW connection and £1,000 for a 10 kW connection.
A daily standing charge for households of £0.12 for a 5 kW connection and £0.15 for 10 kW
23
This source of solar power is not used to generate any electricity. It is solely used to provide hot water and heating for domestic use. 20% of households on Eigg now have these solar heating systems in place. 24
Purchases included bikes, solar water heating, secondary glazing, thicker curtains and polytunnels to grow fresh food locally rather than importing it.
is also in existence while the cost of electricity per kWh is at a flat rate of £0.21. As
previously mentioned, anyone who exceeds the daily limit receives a call-out from the
maintenance team. The household is then subject to a £20 levy in the case of such an event.
The Eigg Heritage Trust has an annual budget of approximately £200,000. Included in this
total is the employment of one full-time employee. The trust is responsible for managing
community and trust-owned buildings while the Eigg Electric subsidiary is responsible for
the operation and maintenance of the island’s electricity generation and micro-grid.
Table 4 Sources of finance for Eigg Electrification and associated initiatives
3.3 Gigha (Scotland)
3.3.1 General Information:
Population25
: 156
Jurisdiction: Argyll and Bute
Area: 14.16km2
Ownership: Gigha Heritage Trust
3.3.2 Grid connection
The capacity of the current grid connection between Gigha and the mainland is 225kW but
permission for a significant upgrade has recently been successful. The cost of upgrading the
grid connection and associated works has been estimated at between £200,000 and £300,000.
This is a significant outlay for the Gigha Heritage Trust and requires upfront investment. If
the appropriate level of finance can be sourced, the improved grid infrastructure has the
potential to generate an additional £40,000-£50,000 per year for the Trust by facilitating
increased renewable energy output.
25
Population figure accurate as of June 2012, provided by Gigha Heritage Trust
3.3.3 Energy consumption and cost
Currently Gigha has no records of the levels of energy consumed annually on the island or
the associated costs. This is mainly due to the difficulty in compiling such information. The
Trust, however, keeps a record of expenditure on energy used in Trust-owned buildings from
the various sources (see Table 5 below).
Table 5 Energy costs (2010) by fuel type for properties owned by Gigha Heritage Trust
In the industrial sector, one fish farm based at the south side of the island uses in excess of
150,000 kWh per month, resulting in an annual electricity bill in the region of £270,00026
.
There are no figures available for the other industrial users of energy on the island but given
the energy intensity of the fish-farm from which details were obtained, and the resultant
costs, developing renewable energy and energy conservation measures could have huge
potential for the economic sustainability of firms operating on the island.
26
Estimated using the Energy Savings Trust’s standard charge electricity price of £0.15 per kWh.
3.3.4 Renewable Energy
The renewable energy strategy on Gigha, as part of their overall island development plan, is
centred on the “Dancing Ladies”. These three pre-commissioned Vestas V27 turbines formed
the first community-owned, grid-connected wind-farm in Scotland. The turbines are
relatively small by modern turbine standards, producing 2.05 gWh of electricity per year.
The decision of the Trust to use pre-commissioned turbines was based on the realisation that
at the time the strategy was being developed many smaller wind-farms across Europe were
replacing small and medium sized turbines with much larger models (EnergyShare, 2011).
This meant that there was good availability of second-hand turbines with sufficient lifespan
still remaining. The availability of Feed-in-Tariffs (see 5.3.3) for new turbines has also
resulted in a shift towards the use of new turbines.
The Trust is now proposing a new Enercon E-33 installation. This new model is more
efficient and has increased electricity production potential of up to 330kW. The lifespan of
the new turbine is 25 years and so will provide greater certainty due to reduced breakdown
and maintenance concerns.
The Trust, supported by Community Energy Scotland and the Climate Challenge Fund, has
had a member of staff working on upgrading the wind-turbine project for two years. During
this time a full feasibility study has been carried out. This included the undertaking of a
successful economic appraisal and EIA. Contract negotiations have also been taking place
with the contractors and turbine manufacturer, while the Trust has also pursued Ofgem for
clarity on the qualification of the proposal for Feed-in-Tariff financing to ensure that the new
turbine will meet the schemes requirements. Once contract negotiations, planning permission
and financing considerations have been agreed upon, a timeframe for the new development
will be put in place.
The regeneration of housing on Gigha has seen the utilisation of micro renewables at
domestic level. Eighteen new homes built on the island in recent years have solar thermal
heating as standard while wood-burning stoves and solar water heating have been applied to
many of the islands refurbished houses.
3.3.5 Energy efficiency
A major challenge that has faced, and continues to face Gigha’s development is the housing
stock. In 2002, a housing survey conducted in conjunction with Argyll and Bute Council
found that 75% of the Trust’s housing stock was “below tolerable standard” (BTS) and an
additional 23% was categorised as being in “serious disrepair” (EnergyShare, 2011). Such
poor housing standards only served to supplement the lack of economic opportunities on the
island and the population fell to 96, with only 6 children attending the island’s primary
school.
Having identified the importance of improved housing to the future success of the island, the
Trust created a Housing Improvement Programme to help deliver warm and dry housing to
the island’s community. Delivery of the programme requires funding in the region of
£6million, with the revenues from the “dancing ladies” an essential element of this27
. Thus far
26 properties have been renovated to a high standard providing warm, dry homes for the
inhabitants and minimising the environmental impact of the community through micro-
renewable energy generation at domestic level.
An additional 18 new houses have been built on the island and are completed with solar
thermal heating as recommended by the Gigha Development Plan. The improved housing
27
Information provided by the Gigha Development Trust to EnergyShare estimates that average annual revenue from the turbines since their installation has been £150,000 with a net profit of £75,000 once repayments and maintenance costs are met.
standards, increased energy efficiency standards of homes and the resultant lowering of
energy bills and carbon footprint has reinvigorated demand for housing on the island with the
population now standing at 156, with 22 children in the primary school. For this trend to
continue, the success of the “dancing ladies” and the new turbine in particular is essential to
help fund the continued regeneration of the island’s sub-standard housing.
3.3.6 Finance
The Trust’s renewable energy and subsequent development strategies have been implemented
using a three-way mix (see Table 6) of grant funding, loan finance and equity finance
(EnergyShare, 2011).
Table 6 Funding by type, source and amount for “Dancing Ladies” development28
The proposed new turbine and the associated upgrade of the connection to the grid is
anticipated to cost in the region of £1 million. This is a very large upfront cost requirement
that the Trust will have to work hard to raise from a variety of sources.
The grid upgrade is being part-financed by grants through the CARES Fund29
and the
Climate Change Fund. The remainder of the project will be commercially financed however,
28
Fresh Futures funding is sourced from the National Lottery. Scottish Community and Householder Renewables Initiative funding is Scottish Executive money administered through the Highlands and Islands Enterprise Board.
making it eligible for the Feed-in-Tariff. The Trust’s efforts to raise finance have been dealt a
blow recently with £200,000 of European Regional Development (ERDF) funding being
withdrawn due to concerns over the relationship between Feed-in-tariffs and public funding.
The financial model developed by the Trust to underpin the project is deemed to be robust
and capable of widespread replication in similar island communities. The Gigha experience
should serve to promote renewable energy development that fuels socio-economic
revitalisation in rural island communities.
29
See Section 4.3.4 for more detail
3.4 Westray (Scotland)
3.4.1 General Information
Population30
: 563
Jurisdiction: Orkney Islands
Area: 47km2
Ownership: Westray Development Trust
3.4.2 Grid connection
The 33kV Orkneys grid network facilitates the 2.7MW of wind-energy that is generated in
Westray (see Figure 7). Plans are currently in place to supplement the traditional Orkney
Island network with an Active Network Management Scheme (ANM), a smart-grid network
that will cover the entire region. As the region has developed its renewable energy generating
capacity, it has continually put increased strain on the traditional network which is connected
to the mainland (Scott, 2012). The implementation of the smart-grid will reduce the levels of
congestion within the Orkney’s network.
Through the ANM scheme a further 20MW of renewable energy generation can be facilitated
at a cost of approximately £500,000. If this additional capacity was to be facilitated by
improvements to the traditional grid network through subsea cable reinforcement, the costs
incurred would have been in the region of £30 million (Scott, 2012). The scheme will
continually monitor the network and restricts generation to maintain overall security.
30
2001 census available from: http://www.scottish-islands-federation.co.uk/population.htm
As detailed further in section 3.4.4.3, studies and trials are on-going into the development of
a huge tidal energy project in the Westray South region. If the project is to go ahead,
preference has been provisionally stated for one single grid connection for the project. This
means that permission is likely to be sought for the installation of a new 200MW grid
connection, entirely separate from the existing connection. Based on initial SSER feasibility
studies it would appear that a subsea cable would not be cost-effective and so a completely
new overhead line and inter-island cabling network would be established as part of the
project (SSER, 2011).
3.4.3 Energy consumption and costs
Unfortunately no figures were obtained during the study for energy consumption or
associated costs for Westray.
Figure 7 Map of current grid network in Orkney Islands
Source: Scott, 2012
3.4.4 Renewable Energy
3.4.4.1 Westray Development Trust
In 2004, the Westray Development Trust (WDT) began exploring and analysing potential
projects that would have socio-economic benefits for the island which was struggling to
provide sufficient living standards and economic opportunities for its residents. Given the
extreme peripheral location of Westray and the wind-resource available an ambitious plan was
developed which centred around the erection of a large community-owned turbine. The
Westray Renewable Energy (WRE) Ltd was set up to manage the turbine.
Installation of the community turbine commenced in early 2009 and by September of the same
year the turbine came into operation. The energy generated by the turbine is sold to
SmartestEnergy Ltd.31
who specialise in the purchase of energy generated by independent
suppliers and in turn sell the energy created to Marks & Spencer Scotland to help them
achieve the aims set out in their green policy.
WRE have sole control of the turbine operation and the cost and revenue streams associated
with its operation. These revenues include the direct profit from the sale of energy created and
the Feed-in-Tariff available to the turbine. Any revenues generated by the turbine and not used
to cover WREs costs are transferred back into the WDT.
The primary purpose of the wind turbine is to create a steady revenue stream for the WDT
which can be used to deliver a range of programmes and services to the community, including
the provision of small grant support to households for energy efficiency improvement
measures.
31
Smartest Energy Ltd.: http://www.smartestenergy.com/About-Us/About-Us.aspx
The energy output of the turbine for the first 12-months of operation is detailed in Table 7
below. The average energy produced from the turbine per month was 255.25 MWh which,
based on revenue available through the Renewable Obligation Certificate (ROC) 32
scheme
could generate approximately £157,683 in revenue for the WDT33
.
Table 7 Energy produced (MWh) by Westray turbine in first 12-months of operation
The lifespan of the community turbine is expected to be between 18 and 20 years with
revenues accrued beyond the cost of loan repayments being hypothecated for replacement of
the turbine in the future.
3.4.4.2 Industry
Industry on the island is focussed on Westray Processors who process and distribute seafood
for the domestic and export markets. As a very large energy user, management at Westray
Processors have been undertaking detailed consultations with WRE and legal representatives
32
Renewable Obligation Certificate price of £51.48 per MW produced correct for 2011. Obtained via: http://www.decc.gov.uk/en/content/cms/meeting_energy/renewable_ener/renew_obs/ro_support/ro_support.aspx 33
Note that this calculation is a revenue estimation made using the ROC price obtained from Ofgem for 2011 (see above) with no external cost factors included. Final profit would be significantly lower than this figure.
to see how they would approach the installation of a turbine close to the factory site and the
management of any turbine erected. As of yet no firm decision has been made on whether the
project will go ahead or not.
3.4.4.3 Tidal Energy Leasing Round
In the 2010 leasing round for tidal energy, Scottish and Southern Energy Renewables (SSER)
was awarded an Agreement for Lease (AfL) for the Westray South site. The AfL grants SSER
a 5-year period for exclusive trial development but is not a licence or consent to install tidal
energy converters on the site (SSER, 2011). Provisional studies and knowledge of the site
suggest that there is a potential for installation of a tidal array with a capacity of up to 200
MW.
3.4.5 Energy efficiency
Fuel poverty within island communities is a very real issue and efforts to address this poverty
have proven to be the catalyst for many wider-scale green development strategies being
developed. This is particularly true in Westray where in 2007, the WDT were successful with
a grant application to the Big Lottery Fund. The funding included specific funding for a part-
time project officer on fuel poverty. Through the project officer a survey of energy efficiency
of island dwellings yielded shocking results about the standard of housing stock on the island
(see Figure 8a and 8b). Using both SAP34
and NHER35
energy rating systems, the vast
majority of households on Westray received the lowest possible rating.
34
SAP ratings are the Government’s Standard Assessment Procedure for energy rating of dwellings 35
National Home Energy Rating system
Figure 8a 2008 breakdown of household energy survey using SAP ratings
Source: Westray Development Trust (2008)
Figure 8b 2008 breakdown of household energy survey using NHER ratings
Source: Westray Development Trust (2008)
3.4.5.1 Westray Fuel Poverty Project
The shocking results of the household energy survey brought the Westray Fuel Poverty
Project to the fore of community development. The fuel poverty project implements an
innovative approach to energy consumption which is linked to financial saving and the
reduction of carbon emissions from local housing.
The key features of the programme are to promote the use of ground source heat pumps to
replace traditional sources of heat energy from open fires, oil fired boilers and storage
heaters, and the widespread draft-proofing of houses and installation of insulation to meet
acceptable standards. Given the stone wall traditional structure of most housing on Westray,
cavity-wall insulation is not practicable.
The Westray Fuel Poverty Project has focussed on the most cost-effective solutions to
improving energy efficiency in the island dwellings. In 2009, the project assisted in providing
loft insulation to over 30 homes leading to improved energy efficiency ratings and provided
applicant households with specialist advice on the types of grant funding available for energy
efficiency improvements.
Financial assistance from the Energy Saving Trust in late 2009 allowed the Fuel Poverty
Project to provide nine of the most inefficient homes in Westray, all of whom would struggle
to access financial assistance elsewhere, with Ground Source Heat Pumps, improved loft-
insulation to the 270mm standard, draught proofing, energy efficient light bulbs and
plugs. The nine houses that received this comprehensive treatment have dramatically
increased their energy efficiency rating and are now acting as examples of the Fuel Poverty
Project’s success.
3.4.5.2 Energy Action Westray
Energy Action Westray is an organisation who has set out ambitious plans to reduce
greenhouse gas emissions on the island by 80% by 2050. Through funding by the HIE, the
organisation has been able to purchase a premises to operate out of. The centre offers a focal
point for the island community to access information on climate change matters,
demonstrations of renewable energy and energy efficiency measures and advice on the
various funding streams available to help implement these measures.
3.4.6 Finance
The community turbine project has received funding from a variety of sources. Initial grant
finance was provided by the Orkney Islands Council and was followed by a Big Lottery Fund
Grant of £761,000 which covered approximately half of the required investment. The
remaining funding was secured as a commercial loan from Triodos Bank. This loan is repaid
over a ten year period.
The revenue from the turbine in the first ten years will be limited due to the loan repayment
requirements but once these have been met, annual income is projected to be in the region of
£200,000. The revenue currently being earned by the turbine is being hypothecated for use in
various community schemes including energy efficiency measures to help alleviate fuel
poverty (Communities for renewables, 2012).
3.5 The Aran Islands (Ireland)
3.5.1 General Information
Population: 1251
Inis Mor (845) Inis Meain (157) Inis Oir (249)
Jurisdiction: Co.Galway County Council.
Area: 31km2
Ownership structure: All private landowners
3.5.2 Grid connection
The Aran Islands off the County Galway coast consist of three islands; Inis Meain, Inis Oir
and the largest, Inis Mor. The three islands are connected to the mainland electricity grid via
a single 3MW cable which provides imported energy to all three islands. The islands have
traditionally been a major energy importer but with the development of renewable energy on
the islands the potential exists to reverse this trend provided the connection to the mainland
grid is upgraded and maintained at a level that can accommodate increased electricity
generation. Plans to upgrade the grid connection in the future are currently only speculative.
3.5.3 Energy consumption and costs
No specific information on the levels of energy consumption on the Aran Islands was
obtained during research. Being connected to the mainland grid, it is known however that the
islanders pay the standard rate for electricity on the island of €0.051 per kWh36
.
36
Electric Ireland standard rate kWh electricity price as of 4th
August 2012. Accessed via:
The lack of access to transport and liquid heating fuel on the island means that the standard
price of such fuel on the mainland is much cheaper than on the island where it is subject to a
supplement due to the cost of transporting the fuel to the island via ferry.
3.5.4 Renewable Energy
3.5.4.1 Inis Oir
As a member of Comhdháil Oileáin na hÉireann37
, representatives from Inis Oir travelled to
Gigha in 2005 to take part in a conference on how other European islands were reducing their
independence on fossil fuels and increasing their sustainable development potential. On their
return to the island, Inis Oir’s representatives held a consultation with the island’s citizens
and agreed upon the development of a strategy that would reduce dependence on imported
fossil fuels but that would not involve large financial outlay.
During follow-up studies of energy patterns and demand on the island it was identified that
tourism was the largest industry and user of energy, and hot-water in particular, on the island,
particularly during the summer months. Thus it was decided that the island would pursue the
implementation of a new technology for generating sufficient hot-water to meet tourist
demand.
Various options were evaluated before the island’s cooperative decided to pilot a biomass
wood pellet burner and a Solar Thermal system with excess hot water being used to provide
central heating (Comhar Caomhán Teoranta, 2008). The biomass boiler was to be fuelled by
http://www.moneyguideireland.com/category/electricity-charges 37
Comhdail Oileain na hEireann translates as The Irish Island’s Organisation. The Organisation represents islands and islander issues at European level.
wood produced and harvested on the island and so there would be an overall carbon neutral
impact from the energy produced.
Two separate houses were chosen for the wood-pellet boiler and solar thermal system pilot
scheme. Over the trial period the wood pellet burner saved the pilot household over 15% on
fuel costs and provided free additional central heating capacity. The solar thermal system was
an even greater success with free hot water available to meet and far exceed the house’s
requirements leading to a vast reduction in fuel oil and electricity costs. The success of the
pilot scheme has led to implementation of similar initiatives in several homes on the island.
The Inis Oir cooperative have begun to evaluate the potential for wind and tidal power
generation on the island but due to financial restrictions have been unable to implement any
such initiatives thus far.
3.5.4.2 Inis Meain
During the late 1990s Inis Meain suffered from a severe lack of fresh water due to a sustained
period of lower rainfall on the island and the unaccommodating geology of the island which
consists of karst limestone38
rock under a thin layer of soil and sand. At the worst point in the
crisis, freshwater supply was restricted to two hours on a Tuesday and two hours on a
Thursday. Further strain was put on the supply during the summer months with the large
influx of tourists.
The Inis Meain Cooperative started to look for solutions to the issue and decided that, given
their surroundings, desalination of seawater for domestic use could provide an answer to the
island’s problems. For desalination of seawater to work, it requires heating the water to 70
38
This permeable rock type means that very little water is preserved by the ground for use by the island dwellers.
degrees Celsius. Given the large freshwater requirement of the island and the energy intensity
of heating vast volumes of sweater to this temperature, the Cooperative was aware that using
traditional fuel resources (diesel generators and mains electricity) would be uneconomical. In
response they introduced wind-turbines to help fuel the desalination process.
Despite some initial scepticism amongst the islanders, the turbines have been a success on
Inis Meain. The three 225kW turbines fuel the desalination process that provides 40% of the
island’s potable water requirements (Udaras na Gaeltachta, 2009) and generates revenue
through excess energy exported to the grid (SEAI, 2003). This revenue can then be used by
the Cooperative for advancing the island’s other sustainable development goals.
3.5.5 Transport
The Aran Islands flagship venture is the Electric Vehicle (EV) trial that is currently taking
place. SEAI and the Department of Arts, Heritage and the Gaeltacht39
have been piloting a
project aimed at developing the technologies and methods available for electric cars to store
high amounts of renewable energy that could potentially be generated on island communities.
The scheme sees eight Mega ECity electric cars operating on the three islands for a 3-year
period. It is anticipated that electricity costs per vehicle will range between €90 and €180 per
annum depending on the electricity tariff the individual household is subject to. The use of
smart meters and smart charging units allow homeowners to charge their EV at the optimal
time when available wind-power is at its maximum and thus the tariff for customers is at its
lowest. By maximising the proportion of energy stored in the EV from local wind-power
there will be a much reduced proportion of energy required from the mainland. The smart-
charger units and smart meters will also be able to calculate the proportion of electricity from
39
formerly Department of Community, Equality and Gaeltacht Affairs
renewable sources that is being used to fuel the car and so an accurate CO2 footprint of the
vehicle can be easily established.
It has been explicitly stated as an ambition of the project that the technologies developed here
and the pilot scheme’s success can serve as a blue print for similar systems on other island
communities and ultimately at national level which could significantly reduce Ireland’s
exposure to fossil fuel price and supply shocks in the future.
3.5.6 Energy efficiency
The Aran Islands Energy Cooperative has set an ambitious 10 year target to make the island
energy independent (MacGiolla Phadraig, 2012). The Energy Cooperative intends to meet its
initial energy reduction targets by providing assistance to island households to make domestic
improvements such as installation of double-glazed windows and wall and ceiling insulation.
During the first year of the energy efficiency programme, the Cooperative has already
implemented widespread energy efficiency improvements in the island’s public buildings.
3.5.7 Finance
While details of the levels of financial support for the various projects on the Aran Islands
were not available, the sources of funding being used to further the island’s objectives, as
identified by Udaras na Gaeltachta (2009), include:
The EU Fifth Framework on Research and Innovation which provides support to
demonstration projects that meet the fund’s criteria.
Udaras na Gaeltachta who provide R&D grants, share capital and training grants.
Galway County Council, being responsible for the provision of potable water, assisted
in the Inis Meain desalination project through grants for civil engineering works and
improvements to the water system.
The Cooperatives on the islands accessed additional funding via commercial bank
loans.
CHAPTER FOUR
FINANCIAL ASSISTANCE AND FISCAL
INCENTIVES FOR RENEWABLE ENERGY
AND ENERGY EFFICIENCY MEASURES
One of the primary constraints on renewable energy development is the availability of
finance and the sustainability of national support schemes, particularly in this era of fiscal
restraint and consolidation (European Commission, 2012). At national and EU level however
there still exists numerous support schemes extending financial assistance to individual
projects and communities. Making island communities aware of the support structures
available to them will be critical to the success of their efforts to move to a low-carbon
society. This chapter looks at the financial support available to Ireland and Scotland from
domestic sources and also from central European Funds.
4.1 Provisions for Renewable Energy Generation in Irish Policy
The Irish Governments Programme for Government 2011-2016 makes clear provisions for
the support of renewable energy generation, particularly at small-scale and community level
(Department of Taoiseach, 2011)40
. One of the recommendations of the Report of the High-
Level Group on Green Enterprise (Forfas, 2009) is to develop greater public understanding of
the economic, environmental and social advantages of local renewable energy projects and
encourage cooperation amongst communities to develop and promote renewable energy
projects. The White Paper on Energy (DCENR, 2007) acknowledged that greater community
involvement in renewable energy initiatives is a widely endorsed practise. However, specific
measures to increase community involvement and reduce barriers in the establishment of
community renewable41
energy resources were not subsequently outlined.
40
Details of the “Green Jobs” element of the Programme for Government available in the Appendix 41
See examples of community renewable energy in Ireland in Appendix G
4.2 Ireland - Financial assistance and fiscal measures for renewable energy and
energy efficiency initiatives
4.2.1 Feed-in-Tariff
The Renewable Energy Feed-in-tariff (REFIT) scheme came into existence in Ireland in
2006, replacing the previous competitive tendering process. The aim of REFIT is to provide
power purchase agreements to renewable energy projects over a 15-year period. To qualify
for the scheme, applicants must already possess planning permission and access to the grid.
The REFIT42
scheme in Ireland consists of three phases43
:
REFIT 1 extends to cover onshore wind, biomass, landfill gas and hydro.
REFIT 2, which covers the same renewable energy sources, is still with the EU
Commission for state aid clearance.
REFIT 3 extends to cover a much wider range of renewable energy installations
including some bioenergy related categories such as anaerobic digestion, CHP and
biomass combustion (Comhar, 2011) and is also currently awaiting Commission state
aid clearance.
42
The development of new renewable technologies such as wave, tidal and offshore wind will be subject to a separate type of state aid application. 43
Due to the widespread uptake of REFIT assistance for domestic Solar PV installations, it is no longer included in the REFIT scheme due to the large expenditure implications in this period of fiscal consolidation by the Irish Government.
Table 8 Ireland REFIT scheme – Price (€) per MWh44
Source: DCENR, 2012
4.2.2 Tax Relief
Tax relief is available for corporate equity investments in some specified renewable energy
projects (solar, wind, hydro or biomass) as set out in Section 62 of the Finance Act 1998. The
method through which the relief is provided is via a deduction from firm profits for direct
investment in a qualifying renewable energy company (Comhar, 2011).
4.2.3 Accelerated Capital Allowance Scheme
Through this scheme firms are able to write off costs of specified energy efficient
technologies and renewable energy technologies in their entirety in the first year of purchase.
These provisions are set out in Section 46 of the Finance Act 2008 (Comhar, 2011).
44
Large-scale wind refers to an onshore project with production capacity in excess of 5MW
4.2.4 Rural Development Programme Fund
The LEADER scheme which previously provided funding for development in rural areas has
been replaced since 2007 by the Rural Development Programme Fund. This scheme provides
a percentage of grant aid for specified small scale microenterprise or community projects that
have renewable energy generation as a core feature (Leader Partnership, 2012).
4.2.5 Grant Schemes
The distribution of grants for energy efficiency and renewable energy measures at domestic
level is carried out by SEAI. The most popular schemes under the SEAI (2012) are the Better
Energy Homes scheme and the Warmer Homes scheme. Previous measures such as the CHP
deployment scheme and the Renewable Heat Deployment Programme (ReHeat) have been
abandoned in the last few years due to the Government’s financial constraints.
4.2.6 Bioenergy Establishment Scheme
The Department of Agriculture (2012) has a grant scheme in place which provides grants to
farmers for planting willow and other suitable biomass crops which can be used for
renewable generation of energy and heat. The available grant can be up to €1,300 per hectare
or 50% of the cost of the development.
4.2.7 Community Based Organisations (CBOs)
In 1990 Energy Action visited Tory Island off the west-Donegal coast and insulated the
homes of its inhabitants. Insulation of homes of those living in fuel poverty by CBOs had
traditionally been focussed on urban areas but with the success of the Tory Project the
scheme was extended to cover those living in fuel poverty in rural and isolated communities
also (McGeough, 2011).
Today the services provided include attic Insulation, cavity-wall insulation, draught-proofing,
fitting of lagging jackets, lagging of pipes, installation of CFL bulbs, energy advice and BER
ratings (McGeough, 2011). At local level, eligible homes are identified by CBO’s via a
network drawn from statutory, community and voluntary sectors i.e. List of households in
receipt of fuel allowance from Department of Social Protection or referrals from charitable
and community organisations such as St Vincent de Paul, the Money Advice and Budgeting
Service (MABS), etc. The households in question are unable to invest in energy efficiency
measures and thereby avail of HES grants.
4.2.8 Carbon Tax
While the carbon tax is not hypothecated for use on renewable energy or energy efficiency
measures, its existence serves to increase the cost of fossil fuels and improve the
competitiveness of energy from renewable sources (Department of Finance, 2009). It is worth
highlighting the impact that the UK floor-price for carbon (see 5.3.7) could have on
renewable energy generation in Ireland. With two interconnectors in place between Ireland
and the UK, and Northern Ireland being a part of the Single Electricity Market in Ireland,
there will be significant increased demand for energy created within the Republic of Ireland
which will become much more cost-competitive.
Figure 9 Map of CBO network in Ireland
Source: McGeough, 2011.
4.3 Scotland - Financial assistance and fiscal measures for renewable energy and
energy efficiency initiatives
4.3.1 Renewable Heat Energy Payment
Through the UK government, the Renewable Heat Premium Payment scheme (see Table 9) is
aimed at helping domestic households to install micro-renewable systems such as biomass
boilers, solar thermal panels and heat pumps (air to water, ground source or water source).
The amount available to each household is dependent on the technology to be implemented:
Table 9 Levels of Renewable Heat Energy Payment available45
4.3.2 Home Renewable Loan scheme for renewable heating systems only
The Home Renewable Loan scheme offers interest free loans of up to £10,000 for renewable
heating systems (i.e. heat pumps, solar thermal and biomass boilers). The interest free loans
will be available for up to 100% of the installation costs up to the maximum of £10,000
(Energy Savings Trust, 2012). The loans are fund-limited however and will operate on a first-
come first-serve basis with applications accepted from 1st August 2012. An alternative
interest free loan of up to £2000 will still be available for electrical technologies (i.e. micro-
wind and solar PV).
45
Current phase of the scheme will run from May 1st
2012 until March 31st
2013.
Technology Funding available
Solar thermal hot water £300
Air-to-water heat pump £850
Ground-source or water-source heat pump £1250
Biomass boiler £950
4.3.3 Feed-In Tariff scheme (FITs)
The UK Feed-in-Tariff works in the same manner as the REFIT scheme in Ireland. Domestic
installation of renewable technologies for electricity production can qualify for direct
payment from energy suppliers for the energy produced. Those participating in the scheme
will also benefit from reduced bills as they will be using their own electricity.
The scheme extends to cover most domestic technologies and some larger systems (with
capacity of up to 5 megawatts) including Solar PV, wind turbines, hydroelectricity, anaerobic
digesters and micro CHP.
All large energy suppliers are obliged by law to make FIT payments to customers. It is not
compulsory for small energy suppliers to make FIT payments although some opt to do so.
FITs (see Table 10) are generally made available in three formats:
Generation tariff – The energy supplier will pay a per kWh unit price for electricity
generated. If your system qualifies for registration the tariff level will be guaranteed
for up to 25years.
Export tariff – A further 3.2p/kWh will be paid by energy suppliers for each unit of
generated electricity sold to the grid. This is a flat rate for all technologies.
Energy bill savings – Customers will make savings on their electricity bills as the
energy they produce will be used to meet domestic demand first.
Table 10 Feed-In-Tariff Levels (FITs) as of April 2012
Source: FIT Tariffs, 2012
4.3.4 Rates relief for renewable energy generators
The Scottish Government’s rates relief scheme offers discounts on business rates of up to
100% for renewable energy generators. For the 2011 to 2012 period the relief has saved the
renewables industry in the region of £4 million (Scottish Government, 2011). This money is
then freed up for reinvestment in the industry. Approximately 85 renewable energy projects
benefit from the relief, with about 50% of these qualifying for the 100% relief entitlement.
4.3.5 CARES Loan Fund
The Scottish Government’s CARES loan fund is delivered through Community Energy
Scotland with the aim of removing barriers to community or rural organisations who want to
develop and pilot new renewable energy generation projects (Community Energy Scotland,
2012). The loan fund incorporates:
Loan facility of up to £150,000
Up to 95% of agreed costs potentially being covered by the scheme
No security requirements from parties applying for loan
A fixed interest rate of 10% per annum
Local support and advice available to applicants
A write-off facility if a project fails to gain planning permission
4.3.6 CARES Rural Business Loans
This particular strand of the CARES loan scheme caters solely for rural businesses. Most
applications to this strand are from farmers who wish to implement a renewable energy
technology on their farm. The CARES Rural Business Loan can cover up to 95% of pre-
development costs such as EIA and technical feasibility studies up to a maximum level of
£150,000. Applicants to the scheme must contribute a minimum of 5% with interest charged
at 10% per annum.
Providing the project is successful, there is a responsibility on the developer to make an
annual payment to a local community organisation for 20 years of at least £10,000 per
megawatt of installed capacity. The community group will use these funds for community
development purposes (Community Energy Scotland, 2012 b).
4.3.7 Community Renewable Energy Support scheme:
The Highlands and Islands Enterprise (HIE) programme operates the Community Renewable
Energy Support Programme (CRESP) which provides grant funding and support for
community led renewable energy projects within the region.
CRESP support is delivered through Community Energy Scotland. The scheme can provide
up to £40k or pre-development technical assistant grant to applicant projects that exceed the
1MW threshold.
The HIE have traditionally supported community developments of wind and hydro projects
and this programme targeting projects over 1MW in size has been developed to build on this
success (Community Energy Scotland, 2012 c).
4.3.8 Carbon price-floor
In the UK Government’s 2011 Budget, the Chancellor announced the introduction of a
carbon price floor from April 1st 2013 which will set the price for a tonne at approximately
£16 (HM Treasury, 2011). While the carbon price floor does not offer direct support to clean
energy production, its introduction will serve to provide support and certainty for low-
emissions industries and make them much more competitive against traditional fossil fuel
energy producers.
4.3.9 Renewable Obligation Certificates (ROCs)
The Renewables Obligation is the primary support mechanism for renewable energy
generation in the UK. The scheme places an obligation on energy suppliers to source an
increasing amount of their energy from renewable sources. Ofgem issues ROCs to renewable
energy generators for each MW of energy produced. Energy suppliers must in turn buy
energy from these renewable generators and receive a ROC for each MW bought. If an
energy supplier does not possess enough ROCs to meet their obligation they must pay the
equivalent into a buy-out fund. The price of a ROC as of 2011 was £51.48 (DECC, 2012b).
4.4 Funding at EU level
4.4.1 The European Energy Efficiency Fund
The European Energy Efficiency Fund was set up to target investment in energy efficient
measures across EU member states (EEEF, 2012).
The EEEF is distributed in two streams:
i) Direct Investments of €5m to €25m loans made available to projects that come
from service companies (ESCOs), small-scale renewable energy and energy
efficiency service and supply companies that serve energy efficiency and
renewable energy markets in the target countries.
ii) Investments into financial Institutions that satisfy the relevant criteria. The
institutions receiving funding from the EEEF then lend the funds to specific
renewable energy and energy efficiency projects that meet the specified eligibility
criteria.
4.4.2 The Intelligent Energy Europe programme (IEE) 2007-2013
Some of the key aims of the IEE programme are to provide funding for projects that aim to
bring pioneering sustainable energy ideas into practise, and project development assistance
facilities with the aim of mobilising investment for renewable energy and energy efficiency
programmes at local level (IEE, 2012). The scheme had €730 million at its disposal for 2007-
2013 period with no agreement yet in place regarding its continued existence after this period
(European Commission, 2012).
4.4.3 EU Structural and Cohesion Funding 2007-2013
The aim of EU Structural and Cohesion funding is to “reduce the gaps in development and
disparities of well-being between their citizens and between the regions” (Ruse, 2007). For
the period 2007-2013 the Structural and Cohesion Funds represent about 36% of the total EU
budget at about €308 billion (Ruse, 2007)
In previous years the island regions of the west Irish and Scottish coasts were eligible for
receipt of funding from all strands of the Structural and Cohesion Policy Funds due to their
peripheral location and lower per capita GDP than mainland averages. With the accession of
the Eastern Bloc countries however the funding available from this stream has been primarily
directed to development in these areas.
4.4.3.1 INTERREG IVC programme:
One programme which is still available to Ireland and Scotland is the INTERREG IVC
operational programme which aims to support the exchange of experiences and networking in
the sustainable energy sector.
Specifically the programme will support regional initiatives aimed at experience exchange in
specific sectors to identify best practise and develop new tools for implementation, while the
fast-track option will bring together regions that have a strong experience in a specific sector
with regions wishing to improve in that particular field. The overall aim is to promote
convergence and the spread of best practise throughout the region.
Stimulating energy efficiency, the development of renewable energies, coordinating efficient
energy management systems and promoting sustainable development are explicitly
referenced as objectives of the programme. The programme has a total budget of €320million
for the period 2007-2013 with grant funding of €300,000 - €4million available for successful
applicant projects (INTERREG IVC, 2011).
4.4.4 Northern Periphery Fund 2007-2013
The Northern Periphery Programme is aimed at developing and helping to fulfil the socio-
economic and environmental potential of peripheral and remote communities on the northern
fringes of Europe. The identifying feature of the programme is the promotion of joint projects
that create innovative solutions and products that could benefit the programme partner
countries.
The regions qualifying for the programme share common difficult climatic conditions, sparse
population and remoteness. Through cooperative action excellent opportunities exist for
tackling common problems by developing shared solutions. The Programme covers a vast
area, encompassing the EU member states of Finland, Ireland, Northern Ireland, United
Kingdom and Sweden and Non-EU member states Faeroe Islands, Greenland, Iceland and
Norway (see Figure 10).
The two specified priorities of the Programme are:
1. Promoting innovation and competitiveness in remote and peripheral areas
2. Sustainable development of natural and community resources
Any projects applying for assistance must have one of these priorities as a primary objective.
During this period (2007-2013), the Programme will allocate €35.115 million in European
funding (ERDF) to partners in Member States (Finland, Ireland, Northern Ireland, Scotland,
Sweden) and for successful applicants will consist of a grant rate of up to 60% of total costs.
The contact points for the fund in Ireland and Scotland are the BMW Regional Assembly and
the Highlands and Islands Enterprise respectively (Northern Periphery Programme, 2012)46
.
Figure 10 Northern Periphery Programme countries
Source: Northern Periphery Programme, 2012
46
Contact details for regional Northern Periphery Programme representatives in Appendix
4.4.5 LIFE+ 2007-13
LIFE+ 2007-2013 is the EU’s financial instrument for environmental and nature-conservation
projects (European Communities, 2009). The LIFE programme has funded a wide range of
projects relating to energy production and distribution; industry and commerce; buildings and
households; transport and management. Examples47
of the type of projects receiving funding
under this scheme are:
Community energy efficiency and renewable energy initiatives
Sustainable energy development strategies
Development and demonstration of integrated Emissions control systems
Successful applicants to the LIFE+ scheme can qualify for grant aid of over €1 million.
4.4.6 European Agricultural Fund for Rural Development (EAFRD
2007-2013)
THE EAFRD is a stream of funding available under the Common Agricultural Policy (CAP)
and provides funding for farmers for the production of fuels for use in the bioenergy industry.
Successful projects can receive grant assistance towards preparing, setting, growing and
harvesting of willow trees and other plant-life that can be utilised in the bioenergy industry
(EAFRD, 2012).
47
Details of individual projects in Ireland receiving funding under LIFE+ available in Appendix
CHAPTER 5
PART I -
LOW-CARBON DEVELOPMENT
STRATEGIES ON ISLAND COMMUNITIES:
ECONOMIC, ENVIRONMENTAL AND
SOCIAL BENEFITS
Part I of this chapter contains a comparative analysis of the benefits that have accrued to
island communities from the pursuit of low-carbon development strategies under three
specific headings;
i. Environmental benefits
ii. Economic and employment benefits, and
iii. Social benefits.
Part II contains a summary of the most successful carbon-reducing initiatives, their potential
for replication and sources of financial assistance available for their implementation. This
information is presented in tabular form and is intended to act as a reference point for other
rural island communities looking for information on the pursuit of a low-carbon development
strategy. This is followed by an overall concluding summary of my findings at the end.
5.1 The success of renewable energy and energy efficiency measures on the islands
The benefits that can accrue to an island community from pursuing a sustainable
development strategy that focuses on the generation of renewable energy and the promotion
of energy efficiency are both numerous and significant. This chapter looks at the key benefits
from the case study of the five rural islands that could be replicated amongst similar island
communities.
5.2 Environmental benefits
5.2.1 Reducing the carbon footprint of island communities
Eigg
It is important to emphasise that the pursuit of renewable energy generation on island
communities is not solely to help achieve environmental objectives. Often the environmental
implications just happen to be a positive externality. In the case of Eigg, it was the pursuit of
a reliable permanent power supply on the island and the financial assistance available to do
so that led Eigg to pursue a green development strategy. If, instead of being available to
renewable energy generation projects, grant finance had been available to develop a small
coal-fired power plant that would provide a 24-hour energy supply, the community on Eigg
may have pursued this option instead. This point serves to focus the discussion on the fact
that island communities just want equal access to the services and opportunities that are
readily available on the mainland and they are willing to achieve that by whatever means are
available to them.
But while the environmental benefits from pursuit of a green development strategy may not
be the primary focus, it is a hugely significant by-product. In the case of Eigg prior to the
installation of the micro-grid and renewable energy installations most households relied on
diesel generators to supply electricity. This caused a large per-capita carbon footprint on the
island which was supplemented further by poor domestic insulation, inefficient heating
systems and the use of open peat or coal fires.
As discussed in section 3.2, the Eigg Heritage Trust has helped to:
- provide domestic insulation to 40% of the island’s homes,
- improve the efficiency of domestic heating systems,
- increase the use of wood (carbon neutral) for use in heating,
- provide 20% of the island’s homes with solar water heating, and
- generate enough renewable energy to provide the island with a 24-hour electricity
supply.
Through this array of measures, the average annual electricity use per household on Eigg has
been calculated at 2,160 kWh as opposed to a UK domestic average of 4,198 kWh. In
addition, annual domestic CO2 emissions on the island have been reduced by 47%, from 8.4
tonnes to 4.45 tonnes (Ashden Awards, 2010).
Inis Meain
The amount of electricity generated from renewable sources displaces the amount of CO2 that
would have been expulsed had the energy been created from traditional fossil fuel sources.
The three turbine capacity of 675kW on Inis Meain, if replacing standard fossil fuel
generated electricity, would save an estimated 636 tonnes48
of CO2 per annum. However,
because the renewable energy is being used to replace the hugely energy intensive use of
diesel in the desalination process on the island (see Section 3.5.4.2), Udaras na Gaeltachta
(2009) estimate that the turbines save approximately 2,480 tonnes per annum.
5.2.1.1 Potential for replication
The environmental benefits accrued by Eigg and Inis Meain could easily be replicated in
similar island communities. Replacing traditional diesel generators with community
48
Estimate made using the formula recommended by the Carbon Trust, accessible via: http://www.pfr.co.uk/pfr/3/Renewable-Energy/15/Wind-Power/64/How-Much-Carbon-Dioxide?/
renewable energy initiatives and micro-renewable installations on off-grid islands can
significantly reduce an island’s carbon footprint.
On-grid islands can also achieve emissions reductions from renewable energy development
as the clean energy created can displace dirty-energy previously imported from the grid. In
addition, grid-connected peripheral islands often rely on back-up diesel generators to protect
against service faults during inclement weather. By installing renewable energy projects at
community and micro-level the requirement for back-up diesel generators diminishes and
there is a further reduction of carbon emissions from the island.
5.2.2 Electric vehicles (EVs) on the Aran Islands
On larger islands, or islands with reliable transport links with the mainland, there may be a
greater need for transport than on small islands. The Electric Vehicle (EV) pilot scheme on
the Aran Islands provides evidence for the potential for use of such vehicles in similar
communities. Through the use of domestic smart charger units the vehicles can be powered
primarily using renewable energy. At periods of low renewable energy intensity, electricity
form the main grid will provide back-up. The smart charger units and smart meters will be
able to accurately calculate the proportion of electricity from renewable sources that is being
used to power the vehicle and so a precise carbon footprint can be determined. SEAI, who are
overseeing the pilot scheme, say that while projecting the level of emissions from the EV
scheme is difficult due to uncertainty over the contribution of renewables to the grid supply,
it is anticipated that there will be an emissions reduction from island transport of between
60% and 100% (SEAI, 2010).
5.2.2.1 Potential for replication
Initial indications from the three-year EV trial on the Aran Islands suggest that it has been a
success thus far. Due to the relatively low mileage requirements of vehicles on island
communities, EVs are ideal. While they don’t offer the same power and speed of traditional
fossil fuelled vehicles, the characteristics and physical size of small island communities
means that such features are not required. EVs currently have much greater potential on
island communities than on the mainland where access to charging facilities is an issue. Due
to the physical size of most rural island communities, EVs are never far from a charging
facility. Provision of financial incentives for the purchase of EVs for island-dwellers could
make this initiative a wide-spread success in rural island communities.
5.3 Economic and employment benefits
5.3.1 Economic benefits from community renewables
The economic benefits from the pursuit of a low-carbon development strategy are difficult to
quantify but on the whole seem to show significant potential for reduced energy costs for
island dwellers and opportunities for revenue earnings and enhanced economic opportunities
through the export of clean energy to the grid.
Gigha
In the case of Gigha, the community wind-turbines feed into the national grid, thus providing
a revenue stream from any excess energy produced that is not required by the island.
Proposals are currently in place for installation of a brand new 330kW turbine which, if the
appropriate grid infrastructure improvements were made, could yield revenue in the region of
£30,000 to £40,000 per annum for the Gigha Heritage Trust for use in other renewable energy
and energy efficiency initiatives.
Westray
The Westray Development Trust owned turbines have a much larger capacity than the small
turbines in place on Gigha. In the first twelve months of operation the turbines generated an
average monthly output of 255.25MW, which generated a sizeable amount of revenue for the
island’s Development Trust.
5.3.1.1 Potential for replication
The village of Fintry in Stirlingshire, although not an island community, provides a new
approach to community involvement in renewable energy which could be replicated by island
communities and potentially yield significant revenues. When permission was sought by a
developer for a 14-turbine development, the Fintry Development Trust, instead of opposing
the plans, convinced the renewable energy developer to add an additional turbine for the
benefit of the village. Each year the developer keeps a proportion of the turbine revenue to
pay off the installation and maintenance costs of the turbine. Despite these costs, the turbine
has generated an average of approximately £30-50,000 a year in revenue since 2004. This
revenue is expected to reach £300,000 to £400,000 per annum when the costs of the turbine
have been paid off. This provides huge amounts of revenue for the Trust to invest in energy
efficiency measures that benefit the entire community.
While island communities have additional infrastructural costs to incur from improving
access to the grid, there is obvious potential for significant revenue to be earned from the
generation and export of clean renewable energy. This revenue can then be utilised to further
the goals and ambitions of the island’s sustainable development plans. There have already
been several examples of community-turbine initiatives being replicated in the Scottish Island
communities such as Eigg, Gigha and Westray.
The potential for replication on rural Irish Island communities is arguably even greater due to
the fact that most of the Irish islands are already connected to the mainland grid. The one
major drawback however, is the ownership structure of land on the Irish islands. As has been
highlighted in the case of Arainn Mhor in 3.1.4, the land areas with the greatest potential for
commercial renewable energy development are characterised by undivided commonage
which can have anything up to 200 owners. Achieving an agreement amongst all landowners
will be virtually impossible so unless the government can intervene in these cases using a
compulsory purchase order49
, replication of the community-turbine schemes on Irish islands
is, for the near-future at least, unlikely.
49
CPOs are often used in major infrastructural projects where the return to the state is deemed sufficiently large enough to force the land-owner into compliance.
5.3.2 Additional economic benefits from a low-carbon development strategy
Eigg
The pursuit of a sustainable development strategy in Eigg has provided additional economic
benefits to the island through the creation of much needed employment. The various
initiatives have created the following job opportunities:
The micro-grid supports four part-time maintenance jobs on the island.
Island dwelling construction workers continue to be employed at various stages
during the energy efficiency improvement measures that have been taking place on
the island.
The growth and harvesting of biomass on the island for use in domestic heating has
created several forestry jobs for residents.
A part time ‘green project manager’ post has also been created, which employs two
people on a job share basis.
There has also been a much wider economic gain by the island from having a reliable and
affordable electricity supply. This has enabled several new businesses to start up including
restaurants, shops, guest houses and self-catering accommodation. The growth of “eco-
tourism” has also brought additional revenues to the island’s citizens as an ever-increasing
number of visitors come to the island to learn about how Eigg is transforming its
development strategy to reduce its carbon footprint whilst enhancing socio-economic
opportunities for those living on the island.
Westray
On Westray, a grant from the Big Lottery Fund in 2007 provided specific funding for a part-
time project officer on fuel poverty. Although this only provides employment to one island-
dweller for one day per week, the work of the project officer in providing applicant
households with specialist advice on the types of grant funding available has created
additional employment for island contractors who have been responsible for bringing over 30
homes on Westray up to energy efficiency standards through installation of insulation and
other domestic improvements.
The Energy Action Westray Long Term Strategy and Action Plan (2009) emphasises that the
island’s peripheral location means that opportunities for economic diversification and growth
are rare. Agriculture, fishing and tourism are the core elements of the local economy but are
all perilously exposed to the rising cost of fossil fuels. Renewable energy offers a rare
opportunity to make use of to diversify and develop the island’s economy which will offer
our community a sustainable economic future (Energy Action Westray, 2009).
Aran Islands
At a domestic level, the projected fuel cost savings experienced by households participating
in the Electric Vehicle (EV) scheme are 80% per annum (Minister O’Cuiv, 2010). In the
current economic climate where disposable income is being stretched to the limit, such
savings at household level are considerable. The EV scheme can also help to provide
additional economic opportunities on the islands. The closure of the only fuel service-station
on Inis Mor in recent years has increased the logistical difficulties faced by indigenous island
industry and reduced the attractiveness of the island as a place to set up a business. The
availability of cheap, clean and reliable energy for use in EVs should go some way to
correcting this problem and may facilitate the creation of additional employment and
economic opportunities on the island.
5.4 Social benefits
Aran Islands
The water shortage on Inis Meain, as highlighted in section 3.5.4.2, created huge social issues
on the island. The absence of a reliable water supply made life extremely hard for the island
inhabitants and young families in particular were feeling forced to leave the island. The
installation of the wind-turbines on Inis Meain for use in the desalination process has helped
to provide 40% of the island’s potable water demands from this source. Naturally, this has
made life for the islanders much easier and makes the island a much more attractive
proposition for people looking to move to or for any commerce or industry wishing to create
employment on the island.
The Electric Vehicle (EV) trial on the islands has also provided a social benefit to the
participating households. In addition to the fuel cost savings of 80% associated with the cars,
the EVs provide a reliable mode of transport to the participating households, something
which has been unattainable on the islands since the closure of the fuel service-station on Inis
Mor in recent years. The reassurance of having a reliable mode of transport in case of
emergency has been one of the key benefits identified by households participating in the
scheme.
Eigg
The development of the micro-grid on Eigg in 2007 provided enhanced social benefits for the
island community. These social benefits include the provision of improved water treatment
facilities, the provision of a stable and affordable power supply and a reduction in the noise
pollution from diesel generators that had characterised energy generation on the island for the
previous few decades. Domestic life has also been made much more comfortable during the
winter months through improved insulation and domestic heating systems. All of these social
improvements have enhanced the quality of life for the island’s population and enhanced
Eigg’s attractiveness as a location for young families to move and set up a home.
Gigha
The social benefits from the sustainable development projects implemented in Gigha
incorporate many of the features mentioned in the previous island examples. The energy
efficiency improvements of domestic dwellings is perhaps the biggest achievement with 26
properties upgrading their energy rating from the lowest possible rating to achieving
acceptable standards. 18 new homes have also been built on the island and have incorporated
solar thermal heating, thus providing much more comfortable living conditions for island
dwellers.
The social benefits of the various initiatives on Gigha may be evident in the recent population
trends on the island. Since 2002 the island’s population has increased from 96, with only 6
children attending primary school on the island, to 156, with 22 children attending primary
school. The improved standard of housing and social conditions on the island has evidently
stimulated housing demand and boosted the island population which, as highlighted in the
Arainn Mhor and Westray Development Plans, is a necessity for the future of island
communities and their development.
CHAPTER 5
PART II:
SUMMARY TABLE OF SUCCESSFUL
CARBON REDUCING INITIATIVES
Initiative Type Currently used in Details of the initiative and potential for replication Direct assistance available
Solar Thermal System Inis Oir Gigha
At domestic level there is significant potential for replication. Solar thermal (solar water) systems use energy from the sun to heat water for use domestically. The system can work in tandem with a conventional boiler or immersion heater to make the water hotter if required or to provide hot water when solar energy is unavailable. The average cost for installation of a solar thermal system is around £4,80050. The Energy Savings Trust (UK) estimates that typical savings from a well-installed and properly used system are approximately £55 (€71.6251), and 230kg CO2, per year when replacing gas heating and £80 per year when replacing electric immersion heating. They also estimate that Typical carbon savings are around 230kgCO2/year when replacing gas and 510kgCO2/year when replacing electric immersion heating.
Ireland Through the Better Energy Homes Scheme, operated by SEAI, there are grants of up to €800 available for installation of solar thermal systems. Scotland In the UK, the Renewable Heat Premium Payment scheme has been extended and is currently open to applications. The maximum financial support available for solar thermal systems is £300.
Solar Photovoltaic (PV) Eigg Solar Photovoltaic (PV) systems capture energy from sunlight and convert it directly into electricity for use domestically or for exporting into the grid. At a domestic level, the size of an average system is in the region 3kWp (DECC, 2012a). According to an assessment52 undertaken by the UK in May 2012, installation of a 3kWp system will cost approximately £7,700. Such a system can generate in excess of 2,500 kWh of electricity per annum and can save approximately a tonne
Ireland Due to fiscal constraints in Ireland and the previous widespread uptake of REFIT assistance, Solar PV installations have been removed from the scheme. Scotland Solar PV systems that qualify for the
50
Information obtained from Energy Savings Trust website on 16th
August 2012: http://www.energysavingtrust.org.uk/Generate-your-own-energy/Financial-incentives/Renewable-Heat-Incentive-RHI 51
Exchange rate obtained from Irish Central Bank on 16th
August 2012 - €1 = £0.78195 52
Study carried out by the UK Department of Energy and Climate Change. Available online via: http://www.decc.gov.uk/assets/decc/11/meeting-energy-demand/renewable-energy/5381-solar-pv-cost-update.pdf
of CO2 per year. Financial savings have been estimated at approxiamtely £540 per annum (Energy Savings Trust, 2012).
Feed-In-Tariff scheme can generate savings of approximately £540 per annum (Energy Savings Trust, 2012). Electricity produced for domestic use by the Solar PV system will earn, depending on the system type, between 7.1p/kWh and 16p/kWh. Excess energy exported to the grid will earn the household an additional 4.5p/kWh. The Home Renewables Loan Scheme can provide loans of up to £2000 in Scotland to assist in the purchase and installation of domestic Solar PV systems.
Wind-turbines Aran Islands Gigha Eigg Westray Arainn Mhor53
Wind power is one of the foremost renewable energy initiatives in operation. Wind turbines harness the energy from the wind and transform it into electricity. Wind turbines can be installed at varying sizes and levels of capacity making them ideal for replication at domestic (micro) and community level. At domestic level, a typical micro system in a relatively exposed site can generate more electricity than is required domestically. Excess electricity can be exported to the grid. Domestic turbines range greatly in value:
- £2,000 for a wall-mounted 1kW turbine - £15,000 for a 2.5kW pole-mounted turbine - £25,500 for a 6kW pole-mounted system
The emissions saved and revenue earned from a domestic turbine obviously depends on the size of system installed but has been estimated at a saving of 5.2 tonnes of CO2 per
Ireland Under the REFIT scheme, energy created from wind turbines qualifies for a direct payment for energy produced. For windfarms or turbines meeting the “small wind” criteria (generating less than 5MW), the REFIT scheme pays €70.46 per MWh produced. Any development where output exceeds the 5MW threshold is entitled to a REFIT payment of €68.08 per MWh produced. The REFIT support comes in addition to the revenue earned from the sale of generated electricity to the grid.
53
Domestic turbine only
annum with revenue in the region of £3,200 generated. At community level, larger turbines can be used to generate much greater amounts of electricity to fuel entire communities and to earn additional revenue through the sale of excess energy to the grid (see Fintry case in 5.3.1.1). SEAI54 estimates in 2010 suggest that the capital costs for a 3MW turbine is in the region of €4.6 Million. This is consistent with the general estimated cost value for larger turbines of €1.5m (£1.17m55) per MW. The annual revenue associated with a 3MW turbine is estimated in the region €540,000 (£422,253) or €180,000 per MW.
Scotland There are several financial support structures for wind-turbine development in the UK. Through the Feed-In-Tariff (FIT) scheme, small scale renewable energy generators can receive revenue via two streams:
i) Generation tariff is a facility
whereby your energy supplier pays
you a set rate for each unit (or kWh)
of electricity you generate. Once
your system has been registered, the
tariff levels are guaranteed for the
period of the tariff (up to 20 years)
and are index-linked. The generation
tariff rates available range between
£0.358 per kWh for installations with
a capacity <1.5MW down to £0.049
per kWh for installations with a
capacity >5MW.
ii) Export tariff provides generators
with a further 5p/kWh from their
energy supplier for each unit
exported back to the electricity grid.
Thus any excess electricity generated
by your domestic system can be sold
to the grid at a guaranteed minimum
54
SEAI (2010) - Resource cost estimates for onshore wind: 2010 – 2050. http://www.seai.ie/uploadedfiles/FundedProgrammes/REResources20102020App3.pdf 55
Exchange rate correct as of 16th
August 2012 from Central Bank of Ireland: €1 = £0.78195
price.
Revenue is also available to wind-
power generators in Scotland via the
Renewable Obligation Certificate
(ROC) Scheme. As of 2011, the price
for a ROC56 was £51.48 (DECC,
2012b).
Electric Vehicles Aran Islands Electric Vehicles refer to both Battery Electric Vehicles (BEV) and Plug-in Hybrid Electric Vehicles (PHEV). EVs have very high direct fuel efficiency and offer average fuel cost savings of 80% to drivers57 in addition to the near zero-emissions from the car if it is charged using an appropriate renewable source. The greatest potential for use of EVs is on rural island communities. On many of these islands there is no access to fuel service stations and thus there is a reliance on very expensive imported transport fuel from the mainland. If developed in tandem with renewable energy installations, EVs can provide a cheap, reliable mode of transport for island communities. Some of the biggest concerns over EVs is in relation to accessing sufficient power to fuel drivers that clock up high mileage. For island communities this is not an issue as mileage is generally small and the vehicle will never be too far away from a charging facility.
Ireland The Department of Communications, Energy and Natural Resources (DCENR) approves grant support of up to €5,000 for the purchase of Battery Electric Vehicles (BEVs) and Plug-in Hybrid Electric Vehicles (PHEVs) available from 2011 to 2012. This grant support is in addition to the VRT relief of up to €5,000 for BEVs and VRT relief of up to €2,500 for PHEVs as included in the 2011 Finance Act. Scotland As of 2011, the Scottish Government provide a grant of £5,000 towards the purchase of low-carbon electric cars with emissions below 75g/km.
Hydro-Electric Power and Storage
Eigg Hydro power systems refer to systems that convert potential energy from water stored at height into kinetic
Ireland The generation of hydro-electricity in
56
One ROC granted to renewable energy generators per MW produced. 57
Figure from SEAI, 2012 available via: http://www.seai.ie/Grants/Electric_Vehicle_Grant_Scheme/I_am_a_consumer/Benefits_of_Buying_an_Electric_Vehicle/
energy via a turbine, which is then used to generate electricity. The greater the height and the larger the volume of water that is available to flow through the turbine, the greater the amount of electricity that can be generated. Hydro power can also be used as a store of energy as in the case on Eigg. When there are large amounts of excess energy generated by the island’s wind turbines, it can be used to pump seawater up to artificial reservoirs where the water can be stored as potential energy. In periods of low output from the wind turbines this water can then be released and transferred into kinetic energy and ultimately electricity to make up for the shortfall. Successfully harnessing hydro-electric power heavily depends on the prevailing geography of the region in question. In areas where there is a large supply of water, and a sufficient high area where water could be stored in an artificial reservoir, then hydro power can be an invaluable energy creation and storage asset. If the topography of the region is very flat however, the returns from the hydro power installation would be inadequate to justify the level of investment required. There is restricted potential for replication of the Eigg and Muck hydro-schemes as the geographical characteristics required are not present in many small island communities. In addition, there are very large capital cost requirements involved in developing such a system and so until a time when sufficient revenue is generated by the community from other resources, justification of a hydro-scheme is difficult.
Ireland is covered by the REFIT scheme. Under the scheme, hydro-electric installations can receive €85.99 per MWh of electricity produced. Tax relief and the Accelerated Capital Allowance Scheme which allows firms to write off costs of specified energy efficient technologies and renewable energy technologies in their entirety in the first year of purchase, can also contribute significantly the promotion of hydro-electric installations. Scotland The CARES Loan Fund and the CARES Rural Business Fund can extend loan facilities to organisations wishing to implement a hydro-electric or hydro-storage scheme. The large capital cost requirement will usually require communities to also seek commercial loans. Depending on the size of the hydro-scheme, financial assistance may be available through the Feed-In-Tariff (FIT) scheme or, in the case of a sufficiently large installation, through the Renewable Obligation Certificate Scheme (ROC). The FIT
scheme provides a range of funding from £0.048 for installations with a capacity of 2MW-5MW, to £0.219 per kWh for installations with capacity <15kW.
Biomass Heating Aran Islands Eigg
Biomass heating systems burn wood pellets, chips or logs to provide warmth in a single room or to power central heating and hot water boilers. The systems can operate via the use of a stove which burns logs or pellets to heat an individual room and can be fitted with a back boiler to generate hot water, or a boiler which burns logs, pellets or chips and is directly connected to the central heating and hot water system. According to the Energy Savings Trust58 the capital costs involved in biomass heating varies between £4,300 for a pellet stove, £2,200 for a log stove and £11,500 for an automatically fed pellet boiler. If the biomass system replaces a traditional coal or electric fuelled heating system, the CO2 savings per annum could be in the region of 7.5 tonnes. The financial savings vary depending on what type of system the biomass installation is replacing but ranges from £100 a year if replacing a gas system to £580 per year if replacing an electric system.
Ireland The Rural Development Programme Fund, Udaras na Gaeltactha, the SEAI’s Better Energy Homes Scheme and the Bioeneergy Establishment Scheme all offer different types of assistance from grants for installation of biomass heating systems, to subsidies for farmers rezoning their land for use in the growing and harvesting of biomass fuels. Biomass energy systems are also covered by the REFIT scheme which pays €85.99 to generators per MWh produced. Scotland Under the UK’s Renewable Heat Premium Payment, a grant of up to £950 is available to applicants for the installation of a biomass boiler. The interest-free Home Renewable Loan Scheme can provide up to £10,000 for biomass heating systems.
58
Information obtained from Energy Savings Trust website: http://www.energysavingtrust.org.uk/Generate-your-own-energy/Wood-fuelled-heating/#costs
In addition, the Renewable Heat Incentive Scheme, due for launch in 2013 may provide a facility for the purchase by the grid of excess energy created by domestic biomass systems.
Domestic Insulation Aran Islands Gigha Eigg Westray Arainn Mhor
Buildings are responsible for approximately 40% of the energy used within the EU59. Thus maximising the efficiency of buildings is essential in the drive to reduce domestic CO2 emissions and spiralling home energy costs. Most of the measures required to upgrade the energy efficiency of homes can be implemented with minimal costs yet yield significant cost and emissions savings. See the examples from the Energy Savings Trust60 below: -Upgrading loft insulation from 100mm to the recommended 270mm costs between £100 and £350 yet offers an annual financial saving of around £25 and a reduction in annual domestic CO2 emissions of 110kg. -Cavity wall insulation can cost in the region of £100 - £350 but can yield annual savings of £135 and approximately 550kg of CO2. -Solid wall insulation can cost in the region of £5,500 - £13,000 but can offer annual savings of over £445 and 1.8tonnes of CO2. -Draft-proofing and the installation of double-glazed windows can provide savings of up to £150 per annum. The potential for replication of these basic domestic energy efficiency measures is huge. They are often
Ireland The SEAI’s Better Energy Homes Scheme provides direct cash grants to qualifying households wishing to undertake domestic certified energy efficiency improvements. The level of grants available include: -€200 for attic insulation -€250 for cavity wall insulation -up to €1800 for internal dry-lining -up to €3600 for external insulation -up to €800 for domestic heating system improvements -€50 towards a BER assessment. Community Based Organisations (CBOs) provides insulation and energy efficiency measures to disadvantage regions. The funding for this scheme is through local agencies and has been restricted in recent years but is still worth enquiring about.
59
EU Commission release, 26th
April 2012. Available online via: http://europa.eu/rapid/pressReleasesAction.do?reference=IP/12/411&format=HTML 60
Cavity wall insulation - http://www.energysavingtrust.org.uk/In-your-home/Roofs-floors-walls-and-windows/Cavity-wall-insulation Attic insulation - http://www.energysavingtrust.org.uk/In-your-home/Roofs-floors-walls-and-windows/Roof-and-loft-insulation
overlooked however due to lack of education and information available at household level. Thus the establishment of community advice networks advising on energy efficiency measures and the support structures available are essential for the success of such initiatives.
Scotland The Energy Assistance Package Scotland is a key initial step in the upgrading of domestic energy efficiency. The scheme offers a universal free home energy audit to identify potential savings that can be made in each applicant home. Free and discounted wall and attic insulation is provided by the Scottish Government through the Home Energy Scotland scheme. An additional £10,000 interest free loan is available to homes within Universal Home Insulation (UHIS) areas.
Smart Meters Aran Islands Eigg
Smart Meters are electricity and gas meters that record and display energy usage in real-time. The advantages of smart-meters are numerous but the most important is that it gives the consumer greater control over their energy consumption. By providing the consumer with real-time information on energy usage, they can amend their domestic behaviour in order to minimise energy usage and costs. SEAI propose to release a “rate-clock” to accompany smart-meters so that consumers can identify high-tariff periods (i.e. 17:00 – 19:00) and minimise energy usage during this period. The introduction of smart meters will also allow for accurate calculation and recording of electricity generated by householders from micro-generation technologies. This will mean that micro-generators will get paid for every unit of energy that they produce. The cost of smart-meter installation and maintenance is
Ireland Smart-meters are to be rolled out nationally to 80% of electricity customers by 2020 with no explicit costs for installation. Scotland Smart-meters are to be rolled out nationally to 80% of electricity customers by 2020 with no explicit costs for installation.
proposed to be covered by energy bills in the same manner that the cost of traditional meters is covered. The EU Energy Efficiency Directive, due to come into effect in October 2012 requires each Member State to roll-out electricity smart meters to 80% of customers by 2020. In Ireland, CER61 has stated that the rollout will commence in 2015 and be completed by 2019, while in the UK the roll-out is due to commence in 2014 and be completed by 201962. As this scheme is to be rolled out nationwide with costs to be covered by existing energy bills, grid-connected islands will reap the benefits from smart meters. For non-grid connected islands, the development of smart-grids will in most places be accompanied by a roll-out smart-meters and so replication of the electricity smart meter scheme is likely to occur in most communities by 2020.
61
Commission for Energy Regulation Decision Paper on the roll-out of smart-meters. Information available online via: http://www.cer.ie/en/information-centre-newsroom.aspx?article=1526e264-7bc6-4dad-ad04-547044b818d4 62
Energy Savings Trust – Smart Meters. Information available online via: http://www.energysavingtrust.org.uk/In-your-home/Your-energy-supply/Smart-meters
5.5 Summary
This study has identified the huge potential that exists for rural islands through low-carbon
development strategies to help mitigate against the effects of climate change whilst
simultaneously extending a lifeline to these peripheral communities through the socio-
economic opportunities that the pursuit of green growth can bring.
The greatest barrier to replication of the low-carbon initiatives is evidently a lack of
education and awareness amongst island communities of the benefits of low-carbon
development strategies and the various levels of assistance that are available to assist
communities pursue such an approach. Other barriers, particularly regarding land-ownership
structures in Ireland, may be more difficult to overcome but I feel that if island communities
are sufficiently educated on the benefits of low-carbon development then such issues can be
overcome to achieve a collective goal.
As identified in my study, there are significant support structures in place that supports
renewable energy development and energy efficiency measures. If the full potential of green
growth is to be experienced however, this support must be supplemented with additional
resource investment by national and regional governments into the education of rural
communities of the merits of pursuing low-carbon development strategies. Governments
must identify that small island communities represent a test-tube where green growth
economic strategies can be implemented at microcosm level. Through the success of such
strategies at microcosm level, governments can hopefully refine their policies and apply them
at much larger levels in the future to help move the developed world to a low-carbon
development track.
Appendix A Questionnaire used in primary research stage of island study
Brian (Ben) McGonagle
MSc in Climate Change: Impacts and Mitigation
(Academic Year 2011-2012)
Dissertation working title
"Towards a zero-carbon microcosm economy: A case study of renewable energy and energy
efficiency initiatives on small rural islands off the Scottish and Irish coasts with the aim of identifying
the initiatives with the greatest potential for replication on similar island communities".
This is a questionnaire that I have developed to gain some background information on the
renewable energy/energy efficiency initiatives taking place on the various island communities that
my study will focus on. I appreciate that some information may be of a sensitive nature and so I
understand that some elements of the questionnaire may not be completed. I ask that you complete
the questionnaire as accurately as possible and would like to thank you for your time and support in
this project.
Instructions:
Answer questions 1-24 where applicable.
Any additional information that you feel may be important will be gratefully accepted.
Feel free to contact me regarding any issues you may have with my questions at:
Questionnaires can be returned to me via e-mail or if necessary postal arrangements can be made.
Island details:
1. Name of island
___________________________________________________________________________
2. Jurisdiction (e.g. Isle of Mull, Argyle and Bute, Scotland)
___________________________________________________________________________
3. Island population: _________
4. Physical size of island (in square-miles/kilometres): _________
5. Ownership of the island (e.g. Private, public, community-trust, etc.)
___________________________________________________________________________
Grid connection:
6. Is the island connected to the mainland grid or other islands?
Yes No
If yes, please provide some detail (Type of connection, connection capacity, etc.):
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
7. Are there any plans for improving the grid connection? (i.e. Long-term plan to export energy
to the mainland grid, plans to participate in a renewable energy grid (the ISLES project),
plans to implement a smart-grid network, etc.)
Yes No
If yes, please provide some detail:
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
Energy consumption:
8. If known, what is the annual level of energy consumption on the island?
___________________________________________________________________________
9. What contribution, if any, do the different fuel/energy sources provide to overall energy
supply?
Diesel: _____________
Gas: _____________
Coal/Peat: _____________
Biofuel: _____________
Solar: _____________
Hydro: _____________
Wind: _____________
Wave/Tidal: _____________
Other: _____________
10. If known, please provide details of the island’s energy consumption pattern (e.g. How much
of the energy consumed on the island is used by households, industry, transport, etc.)
Industry: _____________
Domestic-use: _____________
Transport: _____________
11. What is the per-unit cost of fuel on the island?
Electricity (per kWh/unit)
Diesel (per litre)
Petrol (per litre)
Gas (per kWh/unit)
Other
Renewable-Energy Strategy:
12. Is there an overall renewable energy and energy conservation strategy for the island or do
such considerations feature in any Island development-plan?
Yes No
If yes, please specify the aims of this strategy
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
13. Are the renewable energy/energy conservation measures part of a network of similar
initiatives or are have you any ties with similar projects on other islands?
Yes No
If yes, please give some details of this cooperation (i.e. Who is it with, what level of
cooperation exists, etc.)
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
Renewable Energy Projects:
14. Please provide the name and details of renewable energy projects that exist on the island
(first-one given as an example):
Transport:
15. Is the transport sector included in the islands “green” strategy?
Yes No
If yes, answer Question 16 and 17. If no, answer question 17.
16. Describe the measures that have been taken to reduce fossil fuel use in the transport sector:
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
17. What future plans, if any, are in place to promote a cleaner transport network on the island?
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
Energy-efficiency measures:
18. Is there an energy-efficiency programme in operation on the island?
Yes No
If yes, please give details of the programme and how it is implemented
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
20. What contribution are energy-efficiency measures making to the all over reduction of energy
use on the island? (i.e. Is there a tangible reduction in energy use as a result of these
measures?)
___________________________________________________________________________
_________________________________________________________________________
Finance:
21. How are the various renewable energy/energy efficiency measures on the island financed?
(i.e. Private, EU-grant aided, Scottish government support, Lottery funding, etc. First one
given as example)
22. Would any of the initiatives that have taken place been possible without external funding
assistance?
Yes No
23. Is the future renewable energy/energy efficiency development plan reliant on external
funding?
Yes No
24. Is the potential for the export of energy to gain a financial return a consideration going
forward?
Yes No
---------- END ----------
Thank you very much for your time and cooperation. The information from this questionnaire will be
treated with utmost care and consideration and will only be used in my dissertation submission with
your permission. Any additional information that you may feel relevant to my dissertation and which
you are willing to contribute would be gratefully accepted. I take this opportunity to thank you once
again and to wish you continued good wishes with your efforts.
Appendix B Case study: Samsø – Renewable Energy Island
Source: Danish Energy Agency, Amaliegade 44, 1256 Copenhagen K, Denmark.
Available online via: http://www.ens.dk/en-
us/info/news/factsheet/documents/samsoe170709.pdf%20engelsk.pdf
In November 1997, the island of Samsø, Denmark was designated as a Renewable Energy
Island and project Samsø Renewable Energy Island was launched the same year.
100% renewable energy in ten years:
The target set for project Samsø Renewable Energy Island was a 100% share of renewable
energy in ten years. In the area of heating supply, 60% of homes on Samsø were to have
district heating and the remaining 40% individual supply installations. Since 2003, Samsø has
been self-sufficient in energy. Project Renewable Island Samsø includes:
21 modern wind turbines
Four district heating installations running on straw
Samsø Energy Academy
Many privately owned installations based on geothermal heating, solar heating and
wood pellet boilers.
21 wind turbines:
The island boasts 11 1MW-wind turbines, with a total height of 77m, in three areas across the
island. The wind turbines were erected in 2000. Each turbine generates enough electricity to
meet the demand of 630 standard households, and the 11 turbines together produce more
electricity than the island’s total consumption. The turbines are connected to the electricity
grid in Jutland via transformer stations in the city of Vadstrup. The turbines transmit
electricity to the mainland when they produce more electricity than the island itself can
consume. When there is no wind, the island receives electricity from the mainland via the
same cable, but in net terms the island produces more electricity than it consumes.
A total of 28,000 MWh in an average year:
The total production of the 11 wind turbines in an average year is around 28,000 MWh.
When the large turbines were erected, five smaller turbines on the southern side of the island
were decommissioned. These had a total capacity of 445KW.
The total investment for the 11 wind turbines was DKK 66 million. Nine of the wind turbines
are owned by local farmers. The remaining wind turbines are owned by a local wind turbine
association. These turbines are divided into about 5,400 shares, owned by 450 people.
More energy than Samsø spends on transport:
In 2003, ten 103-metre-high offshore wind turbines were taken into operation south of
Samsø. The offshore wind turbines annually produce more energy than the island uses for
transport, including the three ferries. The municipality of Samsø has invested DKK 25
million in the procurement of five of the offshore wind turbines. The profit from excess
electricity production from offshore wind turbines is invested in new energy projects.
Four district heating plants on Samsø:
The district heating plant in Nordby/Mårup receives heat from 2500m2 solar panels and a
900kW wood chip-fired boiler. The plant is the only heating plant of its kind based on solar
panels and a wood chip-fired boiler. Tranebjerg district heating plant differs from the island’s
three other district heating plants in that it fires whole bales of straw. The plant was
established in 1993 and was the first district heating plant on Samsø. A total of 263 private
homes, commercial enterprises, housing associations and institutions are connected to the
district heating network. The straw boiler in the plant has an output of 3MW and total heating
consumption is around 9,500MWh annually. Ballen/Brundby district heating plant fires straw
and is the only plant on Samsø which is 100% owned by its users. The plant supplies 232
consumers in Ballen and Brundby and is located accordingly between these two towns. A
group of inhabitants from the two towns and Samsø Energiselskab (Samsø energy company)
jointly own the district heating plant.
The Danish Energy Agency has provided a DKK 2.5-million subsidy for construction of the
plant. The district heating plant in Onsbjerg is a straw-fired district heating plant with 76
households and institutions connected. The district heating system in Onsbjerg is different
from other installations on the island because it is a local private limited company.
Samsø Energy Academy:
Samsø Energy Academy officially opened in May 2007. The academy serves as a centre and
exhibition room for renewable energy and energy savings in Denmark. During the summer,
tourists can see an exhibition at the academy about the island’s efforts at becoming self-
sufficient in energy.
Energy Service gives free advice:
Samsø Energy Academy is also home to Energy Service Samsø which gives free advice to
Samsø islanders on insulation and replacement of oil boilers. The academy also arranges
exhibitions, workshops and corporate events for the more than 4,000 politicians, journalists,
students etc. from all over the world who each year visit Samsø to learn from Danish
experience and see the renewable energy island.
Large profits result in new subsidies:
Profits from electricity production from the five offshore wind turbines owned by Samsø
municipality have led to e.g. a subsidy of DKK 5 million to Samsø Energy Academy.
Privately owned plants for geothermal heating, solar heating and pellet boilers:
Today, an estimated 300 households in Samsø’s open countryside have invested in renewable
heating systems. Some have had solar panels installed on their roof which provide hot water
and serve as supplementary heating. Others have replaced their old oil boiler with a pellet
boiler, a masonry stove or another biomass-fired boiler. Finally, some have had the still more
popular heat pumps installed, either for geothermal heating or in the form of an air-to-air heat
pump.
Appendix C Examples of Life+ projects in Ireland
Source: EU Environment website
http://ec.europa.eu/environment/life/countries/documents/ireland_en_oct06.pdf
Appendix D Contact details for relevant organisations, sources of funding and island
development committees
Domestic Government and Agency contact details:
Ireland
Sustainable Energy Ireland (SEAI)
Telephone: +353 1 915 9702
E-mail: E-mail contact link available on website
Website: www.seai.ie
Department of Agriculture
Telephone: +353 1 607 2000
E-mail: E-mail contact link available on website
Website: www.agriculture.gov.ie
Department of Communications Energy and Natural Resources (DCENR)
Telephone: +353 1 678 2000
E-mail: [email protected]
Website: www.dcenr.gov.ie
Commission for Energy Regulation (CER)
Telephone: +353 1 4000 800
E-mail: [email protected]
Website: www.cer.ie
UK
Department of Energy and Climate Change (DECC)
Telephone: +44 300 060 4000
E-mail: [email protected]
Website: http://www.decc.gov.uk/
Scotland
Climate Change Unit, Scottish Government
Telephone: +44 131 244 7815
E-mail: [email protected]
Website: http://www.scotland.gov.uk/Topics/Environment/climatechange/resource-
materials
Energy Savings Trust (Scotland)
Telephone: +44 800 512 012
E-mail: E-mail contact link available on website
Website: http://www.energysavingtrust.org.uk/scotland/
Highlands and Islands Enterprise
Telephone: +44 1463 234 171
E-mail: [email protected]
Website: www.hie.co.uk
Funding programmes contact details:
Ireland
Contact SEAI (details above) regarding Better Energy Homes and domestic energy efficiency
funding applications:
http://www.seai.ie/Grants/Better_energy_homes/
Contact DCENR (details above) regarding REFIT funding applications:
http://www.dcenr.gov.ie/Energy/Sustainable+and+Renewable+Energy+Division/REFIT.htm
Contact Department of Agriculture (details above) regarding Bioenergy Establishment
scheme funding applications:
http://www.agriculture.gov.ie/farmingsectors/crops/bioenergyscheme/
Contact Energy Action Ireland for information on Community Based Organisations domestic
energy efficiency assistance:
Telephone: +353 1 454 5464
E-mail: [email protected]
Website: http://www.energyaction.ie/
Scotland
Contact the Energy Savings Trust (details above) for information on the Renewable Heat
Energy Payment, Home Renewable Loan Scheme and Feed-in-Tariffs.
Application form for rates relief for renewable energy generators available on the Highland
Council website:
http://www.highland.gov.uk/businessinformation/nondomesticrates/reliefandremission/renew
able-energy-generation-relief-scheme.htm
Application for CARES loan and CARES rural development funding to be conducted through
the Community Energy Scotland website:
http://www.communityenergyscotland.org.uk/support/cares/cares_loan
Details on Renewable Energy Obligation Scheme (ROC) available from Ofgem:
E-mail: [email protected]
Website:
http://www.ofgem.gov.uk/Sustainability/Environment/RenewablObl/Pages/Renewabl
Obl.aspx
Other programmes
Contact details for Northern Periphery Funding:
Mr.Michael O’Brien, Mrs.Denise Pirie,
BMW Regional Assembly, EU Manager,
The Square, Highlands and Islands Enterprise,
Ballaghaderreen, Cowan House,
Co.Roscommon, Inverness Retail and Business Park
Ireland. IV2 7GF Inverness, Scotland.
Tel: +353 94 9862 970 Tel: +44 1463 244252
E-mail: [email protected] E-mail: [email protected]
Website: http://www.bmwassembly.ie Website: http://www.hie.co.uk
Island development committee contact details:
Arainn Mhor
Nóirín Uí Mhaoldomhnaigh,
Manager,
Arainn Mhor Cooperative,
Co.Donegal, Ireland.
E-mail: [email protected]
The Aran Islands
Dara Ó Maoildhia,
Inis Mor Energy Committee,
Inis Mor,
Co.Galway, Ireland.
E-mail: [email protected]
Eigg
Ian Leaver,
Development Co-ordinator,
Isle of Eigg Heritage Trust,
Eigg,
Highland Region, Scotland.
E-mail: [email protected]
Gigha
Lukas Lehman,
Trust Manager/Development Manager,
Isle of Gigha Heritage Trust,
Isle of Gigha,
Argyll, Scotland.
E-mail: [email protected]
Westray
Colin Risbridger,
Vice-chairman, Orkney Renewable Energy Forum,
Westray,
Orkney Islands, Scotland.
E-mail: [email protected]
Appendix E Irish Government Programme for Government – Green jobs
Source: Available online through the Department of An Taoiseach’s website:
http://www.taoiseach.gov.ie/eng/Publications/Publications_Archive/Publications_2011/Progr
amme_for_Government_2011.pdf
The Irish Government’s Programme for Government as published in 2011 outline the
following green pledges:
We will double funding for home energy efficiency and renewable energy
programmes until the end of 2013, after which time these schemes will be ended.
After 2013, we will roll out a ‘pay as you save’ scheme to continue home energy
efficiency retrofitting work without recourse to public funding. We will explore the
use of funding options such as an Energy Efficiency Obligation on energy suppliers.
We will tender for a ‘pay as you save’ contract to insulate all public buildings in the
state, where the contractor provides the capital.
We will seek to establish Ireland as a renewable manufacturing hub to attract
international and domestic investment. We will also position Ireland as a leading
player in the global carbon market, and a centre of excellence in the management of
carbon.
We will facilitate the development of energy co-operatives to make it easier for
smallscale renewable energy providers to contribute to our renewables target.
Appendix F Arainn Mhor sustainable development goals
Source: Arainn Mhor Development Plan (2008)
Appendix G Elephant Grass on Bere Island
Jack O’Sullivan and his colleagues at the abalone farm on Bere island are currently
investigating the possibility of growing, harvesting and burning a type of elephant grass
known as micantus to reduce their heating bills. Abalone feeds on seaweed, collected at
spring tides once every two weeks. There is concern however of the danger in trying to
harvest seaweed in bad weather conditions. The solution is to dry it when it is available in
abundance and to store it for feed. The high cost of drying the seaweed could be covered by
generating heat and hot water through the burning of the grass.
This hybrid grass grows, without fertiliser, for twenty three years without needing to be
reseeded. Growing to a height of between ten and twelve feet, it is harvested once a year in
the Spring and yields up to eight tons per acre. Farmers would be paid €300 per acre and
would also qualify for organic REPS payments. The grass lives on CO2 and is therefore
neutral in terms of GHG. The energy generated by the burning of the grass would yield
sufficient hot water to heat homes nearby and the electricity generated could be fed back into
the national grid at a guaranteed price of 7.2c per KWh. Electricity could then be bought back
at about 6 cent per KWh, under a scheme aimed at encouraging the generation of green
energy.
Not only would the system save money for the fish farmers and residents alike, it would also
provide income for farmers in the production of a sustainable crop and would contribute to
the production of GHG neutral energy. The native Asian grass needs rain to thrive, a resource
which is in plentiful supply on Bere Island.
Source: Irish Islands Federation (2008)
http://www.oileain.ie/en/ComhdhailWork/NationalWork/RenewableEnergy/
Appendix H Examples of Community Renewable Projects in Ireland
Source: Rural Network Northern Ireland
http://www.ruralnetworkni.org.uk/download/files/pub_Comm%20Renew%20Energy%20RO
I.pdf