World small wind market by Daily Enmoveme

WORLD SMALL WIND MARKET From technology to incentives

author:

Felice Lucia

WORLD SMALL WIND MARKET From technology to incentives author:

Felice Lucia

WORLD SMALL WIND MARKET from technology to incentives

Foreword In 1999, Paul Gipe, a californian leading expert on wind energy, published the book “Wind Energy basis”, a “black and white” guide to micro wind generation systems. In the preface of the book, he said that, with the growth in the use of renewable sources for power generation, the number of small wind systems in use had exploded and amounted to 150,000 units in America (1998) with an annual growth of 30%. At that time in Europe, in the wake of what was happening in the U.S., we expected an extraordinary boom with interesting implications for employment. With the presence of a bit of wind, each unit of production would have his appropriate wind turbine, just like almost every family owns a small car for commuting. Today, China dominates the market, with 500,000 units installed by 2012, dramatically highlighting the “only” 151,300 units installed in the US. Europe is led by the UK with no more than 20,000 units. All other countries in the world have a few hundred systems installed. This is what emerges from the book “World small wind market”, which describes very recent statistics by the current situation.

WORLD SMALL WIND MARKET From technology to incentives

The data is significant if we compare the units installed with the inhabitants: China (0.04%), USA (0.05%), the UK (0.03%), Canada (0.03%), Germany ( 0.01%), Japan (0.01%), Argentina (0.02%), Spain (0.01%) are the top rated according to WWEA (World Wind Energy Association). The percentage of penetration among the population is still practically insignificant. Anyway, in spite of its ten years of life, the promising small wind sector has not yet achieved the desired results. Reasons can be found in the difficulties related to the certification of the produced small wind turbines, which has great proportions and has somehow distorted the perception of their quality: “World small wind market” describes the issues related to certifications and proposes some possible solutions. However, the “family / home” - “car / miniwind system” dream is still possible. Although the global economic situation is extremely unstable, the development model can be globally defined as “smart”: the future will be characterized by a shift from a sustainable development to an intelligent development. In the background, the “economy” wil become a “green economy” and “green jobs” will spread out. As a support to this thesis, the reported growth trend of the small wind power installed until 2020 (Pike Research) draws an increase from less than a hundred MW by 2013 to almost two hundred MW by 2020.

WORLD SMALL WIND MARKET from technology to incentives

This is primarily due to governments, which have entered into specific commitments to reduce greenhouse gas emissions, in the form of national plans and measures to support worldwide construction of renewable energy plants, including small wind, and to improve energy efficiency. The volume widely examinates incentive rates set by over 20 countries worldwide to support the mini wind installations. Energy resources are essential for all activities in modern society, from the simple chore to the industrial sectors. Small installations make a good idea of how the wind can adapt to different situations, representing an important opportunity for very different zones and situations. In Italy, for example, there are several interesting applications that have marked small wind during last years. Starting from the north, an example is in the municipality of Lavis (TN), where a small installation of 20 kW located at a plant for the processing of Pejo Wood Pallet allows to produce about 9000 kWh / year and meets between 30 and 50 % of the electricity needs of the plant. Other examples are represented by the installations often encountered in farms or in small companies, such as the case of the cooperative “Black Elk” Island Plan (PU), where, in July 2009, a 20 kW system was installed to produce about 40,000 kWh Annual energy.

WORLD SMALL WIND MARKET From technology to incentives

As you will read in “World small wind market”, there are different technological solutions, from horizontal axis turbines (HAWT), mainly suitable in rural areas, to vertical axis turbines (VAWT), better known as “urban turbines”. The overview offered about the technological state of the art, from wind turbines to towers, also includes the installation procedures. The technologies must, in fact, be evaluated carefully, in order to obtain a good estimate of the expected electricity production. The book also faces the crucial aspect of the bankability assessment of a small wind project. It analyses the profitability of a plant, carefully describing the technical parameters (wind resource condition of the installation site, the power curve of the turbine, ...) and economic variables (costs, incentives, ...) on which it depends. Nothing is missing to explore the market of small wind turbines, which has now its second chance to boom. Laura Crisci

WORLD SMALL WIND MARKET from technology to incentives

INDEX

Foreword................................................................................... 3 1. Small wind systems.................................................... 10 1.1. Description of small wind systems............................... 10 1.2. HAWT.......................................................................... 19 1.3. VAWT........................................................................... 23 1.4. Support towers............................................................ 25 1.5. Installation tips............................................................. 26 1.6. Small wind turbines in an urban environment.............. 32 1.7. New technologies..........................................................40 2. WORLD MARKET AND INCENTIVES............................... 47 2.1. Statistics and current situation..................................... 47 2.2. World incentive programs.......................................... 52 EUROPEAN COUNTRIES....................................... 52 Italy............................................................................... 52 united kingdom.............................................................. 53 Germany....................................................................... 54 France.......................................................................... 55 Switzerland................................................................... 56 Portugal....................................................................... 57 Denmark........................................................................ 58 Greece...........................................................................59 Slovenia........................................................................ 59 Middle east......................................................... 60 Israel............................................................................. 60 Turkey........................................................................... 61

WORLD SMALL WIND MARKET From technology to incentives

north america................................................. 62 Usa............................................................................... 62 Canada......................................................................... 63 south america.................................................. 64 Brasil........................................................................... 64 Mexico.......................................................................... 65 Asia...................................................................... 66 China............................................................................ 66 Taiwan.......................................................................... 66 japan............................................................................ 67

India............................................................................. 67 Oceania............................................................... 68 Australia...................................................................... 68 Africa................................................................. 68

2.3. Small wind market forecasts........................................70 2.4. Hybrid systems........................................................... 71 3. BANKABILITY AND FINANCIAL ASPECTS OF A SMALL WIND PROJECT................................................................. 73 3.1. Potentiality and criticality............................................. 73 3.2. Planning of a small wind system................................. 74 Motivations behind the project............................. 75 The choice of the small wind turbine.................... 77 3.3. The annual energy production.....................................80 The wind speed distribution................................. 81 The power curve................................................... 93 Annual Energy Production (AEP)......................... 105

WORLD SMALL WIND MARKET from technology to incentives

3.4. Calculating the profitability...........................................107 Costs.................................................................... 108 Revenues............................................................. 109 Discounted cash flow........................................... 111 NPV calculation.................................................... 112 TR calculation...................................................... 113 IRR calculation......................................................114 LCOE calculation.................................................. 114 3.5. Concluding remarks.................................................... 116 4. CERTIFICATIONS.............................................................. 118 4.1. Types of certifications................................................. 118 Process certifications........................................... 118 Product certifications............................................ 119 Power curve certification..................................... 121 Other certifications.............................................. 122 4.2. Tests and measurements currently in use...................126 4.3. Current issues and possible solutions........................ 134 BIBLIOGRAPHY....................................................................... 138 WEBSITES............................................................................... 141

WORLD SMALL WIND MARKET From technology to incentives

BIBLIOGRAPHY ADEME, Pôle énergies 11 - “Petit éolien: LE GUIDE”, 2010 Alliance for Rural Electrification, “The potential of small and medium wind energy in developing countries”, POSITION PAPER 2012 Arribas L.M., CIEMAT, “Testing and certification for small wind turbines (SWT)”, IRENA, october 2012 Casale C., Viani S., Zanetta G.A.,“Gli impianti minieolici in Italia: macchine, quadro normativo, valutazioni tecnico-economiche”, ERSE, february 2010 Casale C., Viani S., Zanetta G.A., “Linee guida per la realizzazione di impianti minieolici”, RSE, March 2012 Consorzio LaMMa, “Generalità sull’energia eolica”, 2008

December

Cano L., Izquierdo O., Arribas L.M., “Experimental results obtained in small wind turbines test plant. New proposal for the measurements”, CIEMAT,2009 IRENA,“Renewable energy technologies: cost analysis series Wind power”, June 2012 138

WORLD SMALL WIND MARKET from technology to incentives

PROTOS, “Minieolico: sosteniamo lo sviluppo”, 2012 KPMG International - “Taxes and incentives for renewable energy”, June 2012 WINEUR, “Urban Wind Turbines: Technology review”, 2005 World Wind Energy Association, “Small Wind World Report 2012”, March 2012 Office of Environment & Heritage, Enhar, “NSW Small Wind Turbine: Consumer Guide”, June 2010, AUSTRALIA Dr. E. Bueno Pereira, Dr. F. Ramos Martins - “Activity 1: Output from Brazil”, Ministério de ciéncia e tecnologia, November 2009, BRASIL Barroso L., PSR, “Renewable Energy Auctions: the Brazilian Experience”, World Bank - IFC - ESMAP, gennaio 2012, BRASIL Zhipeng LIANG, “Strategy and Policies for Renewable Energy in China”, New&Renewable Energy Depart., 2006, CHINA Ti’éole - “Le petit éolien: ce qu’il faut savoir pour se raccorder au réseau”, october 2011, FRANCE

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WORLD SMALL WIND MARKET From technology to incentives

Erneuerbare Energien, “Tariffs, degression and sample calculations pursuant to the new Renewable Energy Sources Act (Erneuerbare-Energien-Gesetz - EEG) of 4 August 2011 (‘EEG 2012’)”, GERMANY Dr. Panagiotis K. Chaviaropoulos, “Renewable Energy Programs of Greece”, RES Office, Academy of Athens, 2010, GERMANY Government of India, Ministry of New and Renewable Energy, “Small Wind energy and Hybrid Systems Programme”, April 2010, GREECE GWEC, WISE, IWTMA, “India Wind Energy Outlook”, November 2012, INDIA Ministério de Economia, da Inovaçao e do Desenvolvimento, “Diàrio da Repùblica, Nùmero 207 - SUPLEMENTO”, 25 October 2010, PORTUGAL Agence des énergies renouvelables et de l’efficacité énergétique, “La rétribution à prix coutant injecté (RPC)”, February 2012, SWITZERLAND Dr. Mustafa GOZEN, EPDK, “Regulatory Incentives Supporting Competitiveness of Renewables on Energy Market: The Case of Turkey”, ERRA, February 2013, TURKEY

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WORLD SMALL WIND MARKET from technology to incentives

WEBSITES http://www.dailyenmoveme.com/ http://www.canwea.ca/ http://www.ciemat.es/ http://www.dsireusa.org/ http://fee.asso.fr/ http://www.gse.it/ http://www.iea.org/ http://www.jswta.jp/ http://www.legifrance.gouv.fr http://www.mnre.gov.in http://www.nrel.gov http://www.ofgem.gov.uk http://www.pua.gov.il/ http://www.renewableuk.com/ http://ret.cleanenergyregulator.gov.au/ http://www.res-legal.eu http://www.sviluppoeconomico.gov http://www.warwickwindtrials.org.uk http://www.windatlas.dk http://www.windustry.org http://www.wwindea.org http://www.wind-works.org/

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The volume describes the small wind sector, which includes plants that produce energy from wind sources of small rated power, up to about 100kW, whose young world market still offers many uncertainties and obstacles. The book opens with a description of the different existing systems and of their structure, so as to provide a clear picture of what you can find on the market. The delicate issue of profitability is then analyzed, with particular reference to the technical parameters (wind resource, condition of the installation site, power curve of the turbine, ...) and economic variables (costs, incentives, ...) to be evaluated in determining the bankability of a small wind project. Then, it is offered a comprehensive overview on the situation of the world market and on the currently installed capacity, analyzing the strengths of the sector. In particular, the book widely describes the small wind incentive schemes introduced by several countries worldwide and the future trend of the small wind market. Finally, the book focuses on current issues about the process of certification of small wind turbines and on the possible solutions to be addressed at the international level, in order to ensure a better security of the market and a greater consumer protection.