Appl i c a t i onofMi c r ogr i ds i nSc ot l a nd
Ka r i n aVe l i k o v a
Application of Microgrids in Scotland
Karina Velikova
BSc Honours Architectural Studies with International Study Department of Architecture Faculty of Engineering University of Strathclyde
Supervisor: Dr David Grierson Date: 10.03.2016
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Acknowledgement I would like to thank Dr David Grierson for his unwavering support and guidance through the process of completing this dissertation.
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Abstract The global population growth and the world’s developing economy are interdependent aspects which will bring numerous environmental, social, and financial problems humanity will be facing in the upcoming decades. It is crucial that communities and the built environment expand in a way that takes into account their future impact. It is worthwhile to invest in renewable energy systems and sustainable planning and prevent the dangers that global warming and overpopulation can bring. Scotland could become a great example for sustainable development if it benefits from the advantages of its natural energy resources. The country’s major renewable energy resources such as wind and hydro power are mostly abundant in the rural parts. Currently energy supply in these areas is inefficient and expensive. Implementing new systems of energy supply for the rural areas could be a step towards Scotland’s greener future. New microgrids serving a few remote areas of Scotland already prove the benefits of sustainable energy systems. This technology could be applied to a greater extent in Scotland, having in mind the big percentage of the population that lives in the non-urban area and the positive migration trend towards the rural part of the country. Rural Scotland can attract even more future investors and property buyers not only with its cheaper land and calm environment, but also with the opportunity for a more affordable energy supply and energy autonomy. Overcoming the challenges and incorporating microgrids can possibly change the built fabric of the country and optimize its sustainability.
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Table of Contents Declaration ................................................................................................................................. ii Acknowledgement ................................................................................................................... iii Abstract ...................................................................................................................................... v List of Tables and Figures....................................................................................................... viii Introduction ................................................................................................................................ 2 1. Global Warming and Energy Demand ................................................................................... 3 2. Scotland’s Energy Supply Position........................................................................................ 5 2.1 Energy Consumption ........................................................................................................ 5 2.2 Disadvantages of Centralized Energy Systems ................................................................ 7 2.3 Opportunities for Renewable Energy Use ...................................................................... 10 3. Microgrids ............................................................................................................................ 14 3.1 Concept........................................................................................................................... 14 3.2 Advantages ..................................................................................................................... 15 3.2 Disadvantages ................................................................................................................ 16 4. Microgrid Application in Scotland ...................................................................................... 17 4.1 Fair Isle Case Study ....................................................................................................... 17 4.2 Isle of Eigg Case Study................................................................................................... 20 5. Development of the Rural Areas.......................................................................................... 24 5.1 Rural Areas in the UK .................................................................................................... 24 5.2 Rural Areas in Scotland ................................................................................................. 25 6. Future of Microgrids in Scotland ......................................................................................... 28 6.1 Possibilities .................................................................................................................... 28 6.2 Overcoming Challenges of Application ......................................................................... 32 Conclusion ............................................................................................................................... 34 Bibliography ............................................................................................................................ 37
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List of Tables and Figures Fig 1: Changes in Global Average Temperature under Three No-Policy Emissions Scenarios (from EPA, 2016) Fig 2: Energy Consumption per Person, by Country (from Burn – an Energy Journal, 2010) Fig 3: Comparison of Scottish versus UK per Capita Energy Consumption (from AEA, 2006) Fig 4: Energy Use in Demand Sectors in Scotland (from AEA, 2006) Fig 5: Main features of the National Grid (from BBC, 2014) Fig 6: Percentage of Electricity Lost in Transmission for the Most Relevant Modernized Economies (from Wilson, 2015) Fig 7: Renewable Electricity Sources in Scotland (from AEA, 2006) Fig 8. Population Density in Scotland by Local Authority Area (persons per km2) (from Scotland Today, 2016) Fig 9: Power Sources in UK (by Pearce and Evans, 2015) Fig 10: Decentralized Microgrid Diagram (by Altair Nano, 2009) Fig 11: Santa Rita Jail in California (from State Roofing Systems Inc., 2016) Fig 12: Aerial Photograph of Fort Carson, El Paso County, Colorado (from Fort Carson, 2016) Fig 13: Fair Isle Location Map (by Scotland Outline Map, 2009) Fig 14: Wind Turbine Installation, Fair Isle (from Fair Isle Electricity, 2016)
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Fig 15: Isle of Eigg Location Map (by Scotland Outline Map, 2009) Fig 16: Monthly Average Electricity Production in Isle of Eigg System (from Chmiel and Bhattacharyya, 2013) Fig 17: Hydroelectric Plant in Isle of Eigg (from Andrews, 2014) Fig 18: Lead-acid Batteries in Isle of Eigg (from Andrews, 2014) Fig 19: Wind Turbines in Isle of Eigg (from Andrews, 2014) Fig 20: Housing Tenure by Geographic Area (from the Scottish Government, 2006) Fig 21: Property Type by Geographic Area (from the Scottish Government, 2006) Fig 22. Waterfront, Tobermory, Isle of Mull (from Photos of the Isle of Mull, 2016) Fig 23: Fuel Poverty by Geographic Area (from the Scottish Government, 2006) Fig 24: Energy Efficiency Rating by Geographic Area (from the Scottish Government, 2006) Fig 25: Residential Complex at Missouri S&T, Microgrid Research Project (from Hardesty, 2015) Fig 26: Charging of a Plugin Hybrid Car in Missouri S&T (from Hardesty, 2015) Fig 27: Solar Panels Serving an Islanded Microgrid, Borrego Springs Microgrid Project, CA, United States, (from Microgrid Projects Map, 2016) Fig 28: St Briavels Wind Turbine in Construction (by Friggens, 2013) Fig 29: St Briavels Wind Turbine completed (by Friggens, 2013)
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Introduction Energy is an essential part of nowadays society and economy, resulting in high energy demand globally. It is estimated that the demand could double by 2050 due to rapid population growth and the expanding economies of developing countries (Nelson, 2011). Moreover, conventional power systems are facing numerous problems such as poor efficiency, exhaustion of fossil fuel resources, and environmental pollution (Chowdhury, 2009:24). It is necessary to search for alternative methods and sources of energy supply in order to prevent the consequences of CO2 emissions and global warming effects. Even though energy supply is a global problem, solutions can be various on a local level. The focus on local resources and their appropriate application is a step towards a cleaner and greener energy future. Scotland has a lot of potential when it comes to renewable energy generation. There is a strong natural energy resource base, especially in wind and hydro power. Most of these resources are in remote areas of the country. Also, rural areas are the preferred residence for a big number of people in Scotland – 18.7% of the population is considered rural (Scottish Government, 2015). Currently, energy supply in rural areas can be expensive, unreliable, and inefficient. Scotland’s rural areas and remote communities can benefit from an integration of systems generating energy from the nearby renewable energy sources. Rural areas could have clean, cheap energy, and an option to go autonomous to the main grid. This can be achieved with the integration of the distributed generation systems called microgrids. They are used to supply electricity and heat to small communities. The proximity of the system to distributed energy resources and its users has numerous advantages such as efficiency, reliability, and better power quality. Microgrids can improve the life of people in rural areas and the country’s environmental situation. Implication of microgrids can be considered not only as a solution to a current problem, but also can start a new trend for potential home owners in Scotland. Rural Scotland is already a desirable place for property buyers because of its cheaper land and calmer atmosphere. Smaller energy and heating bills on top of this can attract Scots even more to move to the rural areas. Autonomous microgrids can give rural communities the feeling of self-sufficiency and freedom. The face of rural Scotland can change as new areas can be in interest for building. It can be worthwhile to invest and overcome the challenges of incorporating microgrids in the rural areas of Scotland. The installation of decentralized energy systems can bring economic, environmental, and social benefits.
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1. Global Warming and Energy Demand In the following decades, the rapidly growing world population will lead to the challenge of meeting a high energy demand. The aim is to deal with this world-wide problem with sustainable methods as the phenomenon of global warming is already happening. Analysing the data of climate change from recent years and comparing it to the past gives an understanding of the environmental impact of human activity and a scale of its possible effects in the future.
Fig 1. Changes in Global Average Temperature under Three No-Policy Emissions Scenarios, 2016, from EPA
The 1980s, 1990s, and 2000s have been the warmest decades since accurate temperature records could be made (Houghton, 2004:2). The atmosphere’s temperature near the surface has increased, causing more frequent extreme weather conditions (Houghton, 2004:8). The expected temperature increase for the next hundred years is three degrees, which is a temperature difference that has not occurred in the last ten thousand years (Houghton, 2004:10). This will affect the Earth’s climate. As a result, people will be facing numerous problems such as heat waves, droughts, rising sea levels, stronger hurricanes, decrease in fresh water supply, migration, extinction of species, etc. The global response to this problem is of great significance, because human activity itself is the reason for the climate change. Due to fossil fuel burning the carbon dioxide levels in the atmosphere have increased drastically in the last fifty years (Houghton, 2004:8). Carbon dioxide is one of the main greenhouse gasses that traps heat in the earth’s atmosphere leading to an increase in the global temperature. Working towards a decrease of carbon dioxide levels is a difficult task because nowadays people are still relying on fossil fuels to a big extend. Other aspects that further complicate the resolution of global warming is population growth and the growing economy. They will lead to a major rise in energy demand and will be key 3
factors for the global increase in carbon dioxide emissions. It is expected for the global population to increase by 1.6 billion and the world economy to double in the period of 2013 to 2035 (BP Global, 2016). As a result, world energy demand will increase up to 37% (BP Global, 2016). Meeting the demand by fossil fuel burning can be catastrophic for the environment’s future. Moreover, conventional supply by fossil fuels will not be able to meet these demands as fossil fuel sources are depleting drastically. The lack of the resource will make it much more expensive and consumers will probably be seeking more affordable means of energy supply. A viable solution to meet the high demand is energy generation from renewable sources. They are a limitless and widespread resource of energy. The problems of transportation of the resource and high carbon dioxide emissions do not apply in renewable energy generation. Reducing the environmental footprint by using renewables is already widely promoted by a number of policies and carbon dioxide reduction targets on a national and global level. Renewables grow fast in the sphere of energy generation, but start at a low base (BP Global, 2016). The renewable energy systems are still expensive to install and some of the new technologies still require a lot of research and testing. Despite that, renewable have a lot of potential. It is estimated that by 2035 renewable energy will meet close to 8% of the global demand (BP Global, 2016). They can resolve environmental and economic problems arising from the high energy demand. Renewable energy generation will have an important role in response of the climate change challenges. Even though there are factors that supress their widespread use, it is worthwhile to invest, research and promote systems in support of a greener future. In a press release in 2015, the UN Secretary General Ban Ki-moon states: "2015 is not just another year, it is a chance to change the course of history,” emphasizing that this generation is “the last with the ability to avert the worst effects of climate change” (Perciavalle, 2016). His statement leads to the idea that an adequate and fast response to the current problems are necessary. Implementing new systems that generate energy from renewable sources in the near future can make a big difference in respect to the global threat of climate change.
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2. Scotland’s Energy Supply Position 2.1 Energy Consumption Since environmental actions do not follow geographical boundaries, every country has an important role when it comes to sustainably meeting the high energy demand. Looking at Fig 2, in 2010 United Kingdom had an annual energy consumption in the range of 75 to 149 Btu (British thermal units) per person, positioning it in the middle between great energy consumers such as United States, Saudi Arabia, Australia, etc. and the consumers of least energy – central African Countries. Scotland has high energy demand comparing to the rest of UK. It is takes account of 9.1% of UK’s energy while its population is 8.5% of UK (AEA, 2006:12). This can be partially explained with the colder climate that Scotland has. The biggest consumer of energy in Scotland is the domestic sector (Fig 4.), which accounts for 34% of the energy consumption in 2002 (AEA, 2006:8). There is an increase in energy use per capita since dwelling have become smaller (AEA, 2006:8) and the number of households has increased by 14% since 1991 (The Scottish Government, 2016). The Scottish government explains two trends regarding energy demand and number of consumers. As the population is aging, the number of retirees will increase. This means that more people will spend time at their homes and will further increase the domestic energy consumption (The Scottish Government, 2016). In Scotland, 1,016,931 people were in pensionable age in 2008 (which account for 19.7% of the national population) (The Scottish Government, 2016). The estimated number of retired people in the year of 2026 is 1,163,217 (bringing the percentage of retirees up to 21.7%) (The Scottish Government, 2016). It is expected that a significant number of the retired population will relocate from urban to rural areas, leading to more implications for the electricity distribution network in the country (The Scottish Government, 2016). The main grid’s network would have to spread to distant areas, far from its power generators, making the process costly and inefficient. This brings up a problem with the future energy supply of Scotland, in particular the high demand and transmission trough long distances. The current energy generation methods are not effective for the expected built fabric of the country. There is a need of optimization of energy supply and consumption. A transformation is necessary in order to meet the energy needs of the whole population of Scotland, no matter its number or geographical location.
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Fig 2. Energy Consumption per Person, by Country, 2010, from Burn – an Energy Journal
Fig 4. Energy Use in Demand Sectors in Scotland, 2006, from AEA
Fig 3. Comparison of Scottish versus UK per Capita Energy Consumption, 2006, from AEA
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2.2 Disadvantages of Centralized Energy Systems Since having electricity is a basic necessity of a household, most of the British homes, businesses, and other buildings are connected to central power sources by the main grid. Centralized electricity supply is available for almost a century and has increased the standard of living. Even though, the main grid does have downsides when it comes to its technology and environmental impact. The British National Grid transmission system was established in 1925 by Central Electricity Board (Engineering Timelines, 2016). The system allowed a connection between big and efficient power stations to a great number of industrial companies (Engineering Timelines, 2016). In 1930 it was possible to connect homes to the main grid (Engineering Timelines, 2016). In the 1930s the service had a very successful marketing strategy in which the key concept was to create an association of electricity with modernity (Engineering Timelines, 2016). At the time only rich families could afford having the luxury of electricity supply in their homes (Engineering Timelines, 2016). In 21st century Britain, it is difficult to imagine everyday life without electricity. These centralized networks supply electricity to millions of people at the same time, making it a cheap option compared to other strategies of energy supply. On the other hand, the widespread energy supply creates a great demand all over the country which has its issues and consequences.
Fig 5. Main features of the National Grid, 2014, from BBC
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To further understand the downsides of the main grid, it is necessary to comprehend the notion of central energy supply. Energy from power stations moves through the main grid’s cables and pylons and supplies electricity to businesses and homes (Queiro, 2016). The electricity supply contains two interconnected systems: transmission and distribution (Local Energy Scotland, 2016). The transmission network deals with the long distance transport of electricity (Local Energy Scotland, 2016). In Scotland, the network works with voltages of 400kv, 275kW and 132kV (Local Energy Scotland, 2016). High voltage transmission is essential in order to reduce distribution losses. The transmission network is connected to the electricity distribution network which distributes the energy to the consumers (Local Energy Scotland, 2016). The distribution has a reduced voltage which corresponds to the energy load. These networks can work with voltages of 132kV and lower (Local Energy Scotland, 2016). One of the main problems of the operation of the conventional energy distribution systems is the great amount of energy lost in distribution. Not only is energy lost in travelling to its consumers, but also the change from low high to low voltage (from alternating current to direct current) has its own “cost� of 7 to 30% of the energy it transmits (Redfield, 2014). As a result, the power plants generate more energy than the amount that reaches the consumers. The data in Fig 6. shows that the transmission losses for the United Kingdom are around 8 to 10%, similar to other countries with modernized economies. The inefficiency of conventional power supply methods is a problem of an international scale. Their overproduction leads to excessive environmental pollution. This is because a great amount of the power generated is created by fossil fuel burning (AEA, 2006).
Fig 6. Percentage of Electricity Lost in Transmission for the Most Relevant Modernized Economies, 2015, from Wilson
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As a result, in Scotland, electricity takes up to 30% of the carbon dioxide emissions when it accounts only for the 21% of the delivered energy (AEA, 2006). Burning fossil fuels pollutes the air as it releases carbon dioxide, methane, and nitrous oxide, etc. (Union of Concerned Scientists, 2016). In addition, it causes thermal pollution to lakes and streams using their water as a coolant (Union of Concerned Scientists, 2016). Fossil fuels are a major pollutant that have a limited reserve and conventional energy generation exhausts the resources (Chowdhury, 2009:2). There is a need for improvement of the current state of the national centralized energy system to meet the current and future problems of energy supply and environmental pollution. Furthermore, economic issues arise due to the huge distances between generators and consumers. The core of the problem are the high fees that power generators are charged for long distance transmission (Queiro, 2016). The fee’s aim is to influence power companies in investing in generation closer to the areas of demand. Such projects are not easily achieved as building plants in low transmission charge areas is rarely accepted (Queiro, 2016). Paul Younger, a professor of Energy Engineering at the University of Glasgow, states in an interview for BBC News: "Ironically, getting planning permission for power generation close to denselypopulated areas is very difficult, so National Grid is trying to force things one way, where planning policies are trying to force them the other." (Queiro, 2016) Both the planning regulations and the transmission fee do make sense in the context of sphere they are created in. Unfortunately, it puts energy suppliers in a problematic situation with no solution. An example of such scenario is the case of Longannet, a coal power station, situated in Scotland, producing electricity to the main grid (Queiro, 2016). It is far from the areas of demand and owes 40£ million to the National grid to remain connected to the central supply system (Queiro, 2016). Because of this, Longannet, the second largest electricity generator in UK, might be forced to close and cut the supply of 25% of consumed electricity in Scotland (Queiro, 2016). Losing a big power source could be a problem of a national scale. People are very dependent on energy supply, not only because of the quality of life they are used to, even short power outages have a significant socio-economic cost in today’s world. A reason for power blackouts is that supply has to match demand and energy cannot be stored in most cases (Chowdhury, 2009). As the system is interconnected, in cases of high energy demand the generation system can shut down resulting in regional blackouts (Chowdhury, 2009). Also, power outages can be caused by maintenance procedures in the power generators. Power outages lead businesses to face financial consequences and disrupt the everyday life of the main grid consumers. This brings the idea that the main grid and generation from power plants are not reliable and efficient. The pressure of the policies and fees in combination with the holes of the system’s technology creates a necessity for a change in Scotland’s energy supply system. Centralized energy supply as we have it today cannot anymore be marketed as “modern” as it was in the 1930s. Not because almost a century has passed since then, but because the conventional 9
energy supply failed to keep in track with the growing demand, energy dependence, and current environmental issues.
2.3 Opportunities for Renewable Energy Use Scotland has the potential to improve its energy supply methods and become a role model in renewable energy generation. The reason is the abundance of renewable energy sources in the country that could lead it to a greater popularization of green energy supply. 49.6 % of the electricity consumption in 2014 was generated from renewable energy resources (The Scottish Government, 2015). Scotland does try to make the most of the resource wealth and has ambitious goals for its energy future – 100% of energy to be generated from renewable sources by 2020 (The Scottish Government, 2015). The leading resources of renewable energy are wind and hydro power (Fig 7).
Fig 7. Renewable Electricity Sources in Scotland, 2006, from AEA
These renewable sources are mostly located outside the urban areas, far from most of its consumers. A comparison between the occupancy of Scottish land and the abundance of renewables can be seen in Fig 8 and Fig 9. Areas with high population density usually have low winds speeds due to the compact built fabric. Furthermore, the lack of space and potential safety issues do not allow the installation of wind turbines of a bigger scale. Hydro power is generated in areas close to the coastline, which again limits the number of consumers in proximity to the source. This is why in in the case of Scotland, most of the energy generated from renewable sources is still is transmitted by the main grid to the consumers (Scottish Environment Link, 2016). The energy supply process is inefficient because, as discussed in the previous chapter, it is optimal for the energy generators to be in close proximity to its users. Even though a big amount of green energy is produced, the efficiency of the supply method is low due to distribution losses. Sustainable long distance electricity supply is not developed and there is a lack of policies in support of improving the existing transmission lines (Scottish Environment Link, 2016). The carbon dioxide emissions could be significantly reduced with the 2020 energy goal of Scotland, but there is still more to be done in regard to optimization.
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Fig 8. Population Density in Scotland by Local Authority Area (persons per km2), 2016, from Scotland Today
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Fig 9. Power Sources in UK, 2015, by Pearce and Evans
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Alternatives such as off-grid approaches incorporating renewable energy resources could be the answer to the current problem. Smaller scale projects such as microgrid networks can provide a solution in the near future. Installing microgrids can be beneficial for a number of Scottish communities representing a significant amount of energy consumers. As discussed in the previous chapter, having a building permission for a power plant close to areas of residence is nearly impossible. On the other hand, microgrids are small systems supplying energy to their consumers from nearby renewables. Installing renewable energy sources such as wind mills, tidal power generators, and photovoltaics in a relatively close distance to its consumers could be done. Renewable energy sources do not create pollution in the area where they are situated unlike fossil fuel power plants. The compact microgrid systems are likely to be accepted and gain popularity on a local level. The country can benefit from energy generation from these sources to a greater extent if it focuses on the further application of new technologies. Microgrids are a good option for Scotland, taking into consideration the location of its renewable sources and the population’s geographical dispersal.
Fig 10. Decentralized Microgrid Diagram, 2009, by Altair Nano
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3. Microgrids Microgrids can be beneficial for their energy consumers in numerous ways. They bring economic and environmental advantages as well as provide a better supply service. As it is a relatively new technology on the market, there are still uncertainties and disadvantages of their use on such an early stage of the implementation of the system. 3.1 Concept Microgrids are supply networks working on low voltage that can meet the energy demand of small communities (Chowdhury, 2009:3). The energy generators are normally renewable decentralized energy sources which are integrated together. They work as a single unit with the help of power electronic interfaces (Chowdhury, 2009:4). The micro grid can be controlled as one unit added to the main power grid (Chowdhury, 2009:4). There is also the option where the microgrid functions as an island, automatically or manually separated from the main grid. Microgrid systems can have a variety of sizes and designs which correspond to the consumers’ energy needs (Energy.gov, 2016). A microgrid can be used for powering a single facility - for example, the microgrid system of Santa Rita Jail in California (Energy.gov, 2016). On the other hand, the microgrid system can be appropriate for the energy supply of an entire district or community that could produce as much energy as it consumes. A microgrid of such kind is the one in Fort Carson in Colorado Springs which supplies energy to 14,000 residents (Energy.gov, 2016). The system’s operation and use of local energy sources make it a suitable option for energy supply in various cases.
Fig 12. Aerial Photograph of Fort Carson, El Paso County, Colorado, 2016, from Fort Carson
Fig 11. Santa Rita Jail in California, 2016, from State Roofing Systems Inc
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3.2 Advantages Microgrid systems are highly sustainable as they combine a variety of distributed energy resources (Microgrid Institute, 2016). Some of the energy sources microgrids use are: wild, hydro, solar power, waste-to-energy, geothermal, biomass, and combined heat and power systems (Mahieux and Oudalov, 2015). The choice of the resources depends on the resource abundance in the area of the project, which is a very practical approach to energy generation. It gives a greater diversity to the geographical location of the systems (Chowdhury, 2009:4). As mentioned in chapter 2, it will be hard to build a power plant in proximity to the energy consumers. On the other hand, most renewables and the microgrid system are quite compact. For example, wind turbines in small clusters or rooftop solar panels are not a complex method of energy generation. Micro grids have a lot of potential nowadays as they are much easier to be physically built and managed. It can be a smart strategy to cut energy costs as the system connects to local energy resources. The close situation to the sources improves the efficiency of the microgrid system. Many microgrids work only on direct current which increases savings as the energy does not need to be converted for the use of the consumers (Redfield, 2014). Also, transmission and distribution losses are reduced because the electrical and heat loads travel smaller distances and at a lower voltage (Chowdhury, 2009:9). In addition, fees for long distance energy supply do not apply. Import and export costs to the main grid are reduced because the micro sources are combined and the power supply is shared locally (Chowdhury, 2009). The installation of the system does require a big initial investment, but if planned properly in long term it is a much more efficient and cheaper choice for energy supply. In addition, better match in supply and demand increases power quality and reliability (Chowdhury, 2009:9). This is achieved by the microgrid control system which provides an intelligent management scheme. With the help of distributed agents, it controls the generators, storage devices, individual loads, and network switches (Mahieux and Oudalov, 2015). It is programed to calculate the power configuration that is most economical for the specific grid (Mahieux and Oudalov, 2015). In case of mismatch between load and generation, the management of the demand lessens the effect on the quality of the energy supply (Abu-Sharkh, Li and Markvart, 2005:3). The shift of the load assists in achieving a balance of energy supply and reduces the scale of the energy storage (Abu-Sharkh, Li and Markvart, 2005: 3). The energy storage system of microgrids additionally makes the power supply more flexible as it can store energy when there is overproduction. It can be a source of energy when the generators cannot meet the demand of the system and manage rapid fluctuations (Abu-Sharkh, Li and Markvart, 2005:5). Thus, it succeeds in balancing supply and demand and optimizing the performance of the renewable energy systems (Mahieux and Oudalov, 2015). In addition, the system’s proximity to the customers could increase awareness of their energy use. Microgrids provide resilient power that meets the specific needs of the community with an intelligent and easily manageable control system. The microgrid system can benefit communities and big institutions for which it is essential to have reliable energy supply such as prisons, military bases, universities, etc. In such cases 15
the microgrids are generally referred to as campus or community microgrids. They are fully connected with the local grid and at the same time maintain a service isolated from the main grid (Microgrid Institute, 2016). One of the key benefits of using microgrids for communities and institutions is the fact that the system provides backup in case of emergencies (Energy.gov, 2016). Power outages caused by the main grid have a reduced impact on the micro grid because it can work autonomously and generate energy from the renewable energy sources it is connected to (Chowdhury, 2009). For communities in remote areas microgrids would be an upgrade to the energy consumers’ everyday life, as well as their only option for affordable energy supply. Living far from urban areas could restrict communities from connecting to the main grid (Energy.gov, 2016). Private energy supply systems for each household is a huge investment that rarely could be feasible for the consumers. The off-grid microgrids are specifically designed to meet the needs of remote communities. Microgrid systems allow communities to be energy independent for a realistic price. 3.3 Disadvantages The cost of the distributed energy sources is a major challenge of the microgrid projects. Firstly, it is difficult to calculate the cost of the investment. Some of the factors for pricing the projects are the initial level of efficiency of the site and its possibility to be connected to the main grid (Morton, 2016). In many cases communities interested in microgrid installation rely on the possibility for a cost reduction in the form of governmental subsidies (Chowdhury, 2009: 10). The subsidies’ aim is to encourage investments in green energy generation. The national targets are to enhance renewable energy generation 20% by 2020 (Chowdhury, 2009: 10). Scotland’s goal for 100% of generated energy to be from renewable sources can additionally support the idea of investing in microgrid systems. As the microgrid system is not widely popular, there are still technical difficulties associated with its control, management, and protection (Chowdhury, 2009: 10). There is need for an extensive research on a theoretical and practical basis (Chowdhury, 2009: 10). Proper sizing of the system and appropriate positioning for the renewable energy sources is still a challenge (Chowdhury, 2009: 10). When it comes to microgrids in rural areas, the lack of communication infrastructure can be an issue as the systems need to be regulated for safety and research reasons (Chowdhury, 2009: 10). The absence of standards of the energy distribution system is another problem that investors face. There are issues with setting the price on the energy quality – estimating how much the service of providing reliable power should cost (Morton, 2016). Some other unresolved aspects of the system are: protection and safety guidelines, standards for the integration of energy sources, their participation in the power markets, etc. Very few countries have regulations and a standard legislation for the management of the microgrids’ operation. Even though countries, including Scotland, encourage green power energy generation, standard regulations are still to be set for the future implementation of microgrids (Chowdhury, 2009:10). 16
4. Microgrid Application in Scotland Microgrids are a fairly new system in Scotland. There are only two cases of microgrid application in the country – in Fair Isle and Isle of Eigg. Both of them are isolated communities which have had struggles with energy supply for many years. The microgrids have provided them with energy at all times at a lower cost. As well, they produce their own energy from renewable sources making the whole process of energy generation environmentally friendly.
4.1 Fair Isle Case Study
Fig 13. Fair Isle Location Map, 2009, by Scotland Outline Map
The island of Fair Isle is located in the north of Scotland. It is situated between Orkney and Shetland islands making it one of the most distant inhabited islands in United Kingdom (Microgrids: Bringing Electricity to Rural Communities, 2015). Fair Isle has less than a hundred residents and thus it does not have a great demand for electricity (Microgrids: Bringing Electricity to Rural Communities, 2015). Nevertheless, the island’s residents require electricity to meet their basic needs and enhance their quality of life.
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The Problem Because of its distance from the main land it is not possible for the island to be connected to the main grid. Before 1982 the source of energy were two diesel generators. The residents were provided with electricity daily for a few hours: two hours in the morning and between dusk and 11 pm (Microgrids: Bringing Electricity to Rural Communities, 2015). The reason for the scheduled electrification was the high cost of the diesel used for the production of energy. Around 1980, the diesel prices increased even more and the Fair Isle Electricity Committee was searching for alternative solutions to the energy problem of the island (Microgrids: Bringing Electricity to Rural Communities, 2015). The Solution Fair Isle has an average annual wind speed around 9.95m/s making wind power generation a great choice for the community (Microgrids: Bringing Electricity to Rural Communities, 2015). The first wind turbine on the island was built in 1982 (Microgrids: Bringing Electricity to Rural Communities, 2015). Its 60kW generator was working when the wind strength was sufficient. In 1996, another turbine was built which had a generator with the capacity of 100kW (Microgrids: Bringing Electricity to Rural Communities, 2015).
Fig 14. Wind Turbine Installation, Fair Isle, 2016, from Fair Isle Electricity
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Safety was a key issue when it comes to wind turbines. The winds in Fair Isle can reach over 40m/s and in such case the spinning of the turbines becomes very dangerous (Microgrids: Bringing Electricity to Rural Communities, 2015). Stall-regulated blades were installed on the turbines as a safety measure (Microgrids: Bringing Electricity to Rural Communities, 2015). Their design allows them to combat the strong winds, decreasing the angle of attack on the blades (Microgrids: Bringing Electricity to Rural Communities, 2015). As a result, the rotational speed does not exceed speeds that are above the safe levels. Such passive techniques play an important role of the energy generation project for Fair Isle. The absence of specialists on the island make planning in advance a necessary measure. Nowadays the community of Fair Isle benefits from the operation of a microgrid system which works on two networks: one for higher priority services and another for the heating (Microgrids: Bringing Electricity to Rural Communities, 2015). The heating network uses the electricity that is overproduced by the turbines which otherwise would be dumped (Microgrids: Bringing Electricity to Rural Communities, 2015). In the case of lack of generated power, the heating network remains offline because supplying power to the main services is a priority of the system (Microgrids: Bringing Electricity to Rural Communities, 2015). The efficiency of the system is also a result of several optimization strategies applied to the operation of the wind turbines. When the wind is strong enough even a single turbine can meet the energy demand of the small community, while the other one remains off (Microgrids: Bringing Electricity to Rural Communities, 2015). Another mode is synchronous operation where the two wind turbines work together and share the demand (Microgrids: Bringing Electricity to Rural Communities, 2015). A diesel generator is used as a support in case of overloading, unsufficient wind speeds, or failure of the system (Microgrids: Bringing Electricity to Rural Communities, 2015). Fair Isle’s inhabitants were used to being provided with electricity as they had diesel generation. Even though, the energy supply was very limited because they were energy poor as a result of the high cost of diesel. Comparing to the rest of Scotland and United Kingdom, the island’s community had a low standard of living because of their unsatisfactory energy supply method (Microgrids: Bringing Electricity to Rural Communities, 2015). By implementing renewable energy sources and the microgrid system meeting the energy needs was possible and affordable. In addition, the system gave the opportunity for an autonomous energy generation that can operate without the need of specialists on the subject matter. At the same time, people had electricity whenever needed allowing them to be connected to the rest of the world. Incorporating a micro grid system in Fair Isle provided the residents a much more economical, comfortable, and fulfilling way of life.
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4.2 Isle of Eigg Case Study
Fig 15. Isle of Eigg Location Map, 2009, by Scotland Outline Map
Isle of Eigg is situated in the west coast of Scotland. Its territory is around 31 square kilometres and has 90 residents (Microgrids at Berkeley Lab, 2015). The Problem Prior to 2008, meeting the islanders’ energy needs was dependent on individual diesel generation and a number of private small-scale hydro systems (Microgrids at Berkeley Lab, 2015). For the residents this meant that energy supply for their home required a huge initial investment and expensive maintenance. A connection of the island with the main grid was an even more costly scenario. The price of such installation was estimated in-between 2 to 5 million pounds and as funding was not found the idea was abandoned (Chmiel and Bhattacharyya, 2015:578). The Solution Later on, partial funding was provided by the European Regional Development Fund and the community of Fair Eigg did not have to rely anymore on their personal energy supply systems (Microgrids at Berkeley Lab, 2015). The development of a hybrid electrification system in the Isle of Eigg started in 2004 and its installation took four years (Chmiel and Bhattacharyya, 2015: 579). In February 2008, a microgrid system was incorporated with newly installed renewable energy sources – hydro power generators, wind turbines, and photovoltaics (Microgrids at Berkeley Lab, 2015). The island was equipped with: hydro power (110kW), one 20
large diesel generator (100kW), two small generators, four wind turbines (24kW), and photovoltaics (32kW) (Microgrids at Berkeley Lab, 2015), and additional backup by lead-acid batteries (60 kW) (Andrews, 2014). The renewable sources were comprised in a microgrid system that was backed up by the generators (Chmiel and Bhattacharyya, 2015: 579). The generated electricity was further distributed to the homes through an underground system, supplying energy at all times (Chmiel and Bhattacharyya, 2015: 579). Another advantage of the system is the good management of the energy load. To improve it, energy monitors and droop controls were installed in all properties (Microgrids at Berkeley Lab, 2015). The project is a success as 95% of the energy comes from the renewable source and since the installation of the microgrid CO2 emissions have dropped by 47% (Microgrids at Berkeley Lab, 2015), (Andrews, 2014). The use of renewables reduced the diesel generation energy supply and significantly lowered the cost of electricity. The residents pay a flat rate of ÂŁ0.20/kWh for consumed power and a daily standing charge up to ÂŁ0.15 depending on their type of connection, which is not such a big difference from the prices on the mainland (Andrews, 2014). The Isle of Eigg project gives an opportunity for a further study of microgrids. Analysis of actual data and results of simulations are some of the methods which researchers apply (Chmiel and Bhattacharyya, 2015:586). Their goal is to create a greater understanding on how Isle of Eigg succeeded in supplying reliable energy and investigate what improvements could be done to the system. Some of the findings prove the achievement of the project. For example, looking at Fig 16 it can be seen that solar energy complements the hydropower and wind energy generation as solar radiation has a peak in summer when the wind and hydropower strength weakens (Chmiel and Bhattacharyya, 2015:586). The analysis of the simulations comments on the scale of the grid as well. It suggests that an installation of four smaller generators of 20kW could have been a better option for the island (Chmiel and Bhattacharyya, 2015:586). This would have decreased the initial installation cost and ensured a high utilization rate (Chmiel and Bhattacharyya, 2015:586). Another simulation justifies the use of renewable energy on the island. It shows that the installed diesel generators can meet the demand of Isle of Eigg, but this would require 223kL of diesel, making the operating cost 4.5 times higher than the optimal case scenario of the microgrid (Chmiel and Bhattacharyya, 2015:587).
Fig 16. Monthly Average Electricity Production in Isle of Eigg System, 2013, from Chmiel and Bhattacharyya.
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Fig 17. Hydroelectric Plant in Isle of Eigg, 2014, from Andrews
Fig 18. Lead-acid Batteries in Isle of Eigg, 2014, from Andrews
Fig 19. Wind Turbines in Isle of Eigg, 2014, from Andrews
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The Isle of Eigg case study is considered to be an example of how renewables in combination of a microgrid can benefit a whole community in numerous ways. It is a model of sustainable off-grid design and management. The variety of energy sources used make a great resource for research and testing. The success of the project is considered to be due the
involvement of the residents, private companies, and organizations (Microgrids at Berkeley Lab, 2015) The Fair Isle and Isle of Eigg case studies can be the research base for future projects as they successfully meet the needs of their consumers. The explored case studies are in areas where the communities did not have much of a choice of any other supply system in order to meet their basic energy needs. They prove that microgrids can be a great solution for communities isolated from the main grid, but the system can be applied in many more cases. Microgrids can be an upgrade to the energy generation method of the rural areas that are already connected to the main grid. To mention a few benefits, this will optimize their energy performance, lower the prices of consummation of energy, and make the whole process more sustainable. A concept for a wide use of microgrids in rural areas is worth to be researched as its implication can significantly change the environmental ranking of the whole country. The microgrid technology is a large investment, thus the idea of its widespread use brings a lot of questions about the necessity and outcome of such project.
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5. Development of the Rural Areas The topic of implementing microgrids in rural areas of Scotland brings up the question of the significance and future of these areas. In order to consider the idea of widespread installation of such expensive systems, first the notion of the Scottish rural areas should be explored. The chapter will investigate the tendency for Scots to stay or migrate to rural areas and the problems that remote communities are facing. 5.1 Rural Areas in the UK European cities continue increasing their demands on the environment. It is still a great challenge for city planners to develop a plan for a sustainable urban evolution. The British government believes that a more sustainable development can be achieved by implying the policy of building up to 60% of new housing on re-used urban land (Jenks and Dempsey, 2005: 96). Even though this policy intends to decrease the extent of the built fabric it could lead to high congestion and pollution in urban areas. The advantages of developing the rural areas should be considered and explored. In the UK a tendency to build outside the urban areas can be seen in the last few decades (Jenks and Dempsey, 2005:96). Since the Second Words War there is a persistent dispersal of housing, industry, and commerce from the major urban centres (Jenks and Dempsey, 2005:96). In the “Work” report of 1999 of the Town and Country Planning Association (TCPA) it is concluded: “… The immediate future will be like the recent past. Cities are likely to continue their relative and absolute declines (…) suburban and non-urban areas will continue to take the lion’s share of new jobs in expanding sectors and occupations” (Jenks and Dempsey, 2005:96) Research on the topic shows that most investors prefer to buy property (including homes) or build outside of cities (Jenks and Dempsey, 2005:97). Land prices are a big factor when it comes to property seekers. House building is decreasing and prices for homes in the urban areas are rising, resulting in shortages of affordable housing for the working class. Smaller households can afford larger homes in open rural environments. This interest in the non-urban areas is not only economical. Not all people are satisfied by living in small dwellings in high-density urban environments. Studies suggest that older people move to more family-friendly and quieter areas and are replaced by the upcoming wave of the youth that seeks the city life defined by a more vibrant atmosphere (Jenks and Dempsey, 2005:97). Surveys indicate that the majority of British people would like to live in rural areas (Jenks and Dempsey, 2005:97).
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5.2 Rural Areas in Scotland In the 1970s there was a significant increase in the rural population of the country, which has continually kept on raising throughout the years (The Scottish Office, 1992). Nowadays in Scotland more than 1 million people who live in the rural areas of the country (SRUC's Rural Policy Centre, 2014:4). In the past few years more people have migrated to rural Scotland than out, leading to a population growth in the area (SRUC's Rural Policy Centre, 2014:27). People see more and more advantages in rural life and in the upcoming years the interest in moving to rural areas will grow. It is estimated that the Scottish rural housing stock will increase by 20% by 2035 (SRUC's Rural Policy Centre, 2014:5). Even though these regions are generally desirable places to live in, there are still a lot of downsides such as the high cost of energy supply and low efficiency ratings. The rural parts of Scotland provide an opportunity to live more autonomously for a better price. Looking at Fig 20, it is clear that the properties in the rural areas are much larger – mostly detached houses and semi-detached houses. Also, in Fig 21 it shows that rural Scotland has the greatest percentage of home owners. This could be partially explained by the idea that many Scots prefer the lifestyle that the rural areas provide. Rural Scotland’s open space, cleaner environment, and good quality of life is just one of the possible explanations. Keeping in mind the size and quality, properties in non-urban areas have much better values than the ones in urban centres. Scotland’s rural areas are one of the most affordable properties in the United Kingdom (Harrison, 2016). Prices in urban areas are continuing to grow faster than the ones in the countryside (Harrison, 2016). This leads to the conclusion, that even in the future people will want to buy homes in the rural areas because of the good quality and size of housing they get for their money.
Fig 20. Housing Tenure by Geographic Area, 2005/2006, from the Scottish Government
Fig 21. Property Type by Geographic Area, 2005/2006, from the Scottish Government
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The reasons for moving to the rural areas vary depending on the region. For example, in Aberdeenshire and Shetland there is a positive net migration of people aged 26-30 who are likely to seek employment in the region’s relatively strong labour market (SRUC's Rural Policy Centre, 2014:43). Western Isles and Cairngorms National Park show an interest of different age groups because of the good quality of life the area is known for (SRUC's Rural Policy Centre, 2014:43). Stirling has a high in and out migration especially of young people mainly due to the presence of The University of Stirling (SRUC's Rural Policy Centre, 2014:43). On the other hand, South and East Ayrshire have a low migration as people do not have the resources or capital to leave so the region remains an affordable place for them to live in (SRUC's Rural Policy Centre, 2014:43).
Fig 22. Waterfront, Tobermory, Isle of Mull, 2016, from Photos of the Isle of Mull
Fig 23. Fuel Poverty by Geographic Area, 2005/2006, from the Scottish Government
Fig 24. Energy Efficiency Rating by Geographic Area, 2005/2006, from the Scottish Government
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One of the great problems in rural Scotland is the high number of fuel poor households in the area compared to the rest of Scotland (see Fig 23). A household is considered fuel poor if it spends more than 10% if its income on fuel use (SRUC's Rural Policy Centre, 2014:74). Fuel poverty is often characterized by: low incomes (often seasonal and short-term employment), old housing stock, and off-grid or off-gas energy supply (SRUC's Rural Policy Centre, 2014:74). Many of the households are “off-gas” and they have to be heated by fuel oil which is a more expensive option (SRUC's Rural Policy Centre, 2014:74). In 2012, around 54% of the households in rural areas were off-gas (SRUC's Rural Policy Centre, 2014:74). Fuel poverty is also a result of the poor energy efficiency of the dwellings. In can be seen in Fig 24 that compared to urban households, rural properties are rated lower in energy efficiency. This leads to the conclusion that there is a lot to be done when it comes to alternatives for energy supply and improvements in the energy efficiency of rural households. It is worthwhile to work on the problems of rural areas as it is still is a big interest for Scots to live there despite some of the challenges. The better quality of life and employment opportunities of some regions are one of the driving forces for migration. The good price for the quality of the housing is to a big extend the reason why Scotland’s rural parts are a desirable place to live in. Nevertheless, positive migration to rural Scotland is not a new trend and can be seen since decades. Rural life is part of Scottish culture and probably the interest in it will remain for many years to come.
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6. Future of Microgrids From the research of the microgrid system and rural migration trends in Scotland, it can be concluded that a wider application of microgrids could be an adequate solution to problems in energy supply, environmental sustainability, and the social sphere. The following chapter focuses on circumstances that could lead to a microgrid popularization. It is further discussed to what extend microgrids can be implemented and how they can affect aspects connected with autonomy, economy, legislation, and the urban fabric. Additionally, the challenges on the way of widespread microgrid use are examined and possible solutions are provided.
6.1 Possibilities Nowadays there is a small number of microgrids in use, but is some regions of the world it is already gaining popularity (Microgrid Institute, 2016). Researchers and investors are keen on working on the details around the implication and further development of microgrids because they can solve the problem of energy efficiency, reliability, and affordable energy. In the next few decades it is very possible for Scotland to implement the microgrid generation, especially in the rural areas rich of renewable energy sources. The drivers are social and economic and can be further pushed by the British policies on building sustainability. The expected positive migration rate to the rural parts of Scotland can further grow as a consequence of the change in the energy generation and supply methods. Most probably the concept of energy autonomy will be very important for the future application of this system in Scotland. The system can reliably serve communities living offgrid or ones who seek independence from major utilities. (Mahieux and Oudalov, 2015). This will apply to the culture of self-reliance and independence common to rural areas (SRUC's Rural Policy Centre, 2014:74). In rural Scotland it is common practice to own a private property or business. Logically, an autonomous energy supply system will fit the ideology of rural life. The fact that it is functional and supports the philosophy of the area can be a very successful marketing strategy and draw more attention to possible investors. Further research and development will also encourage the interest of investors. Development in technologies such as improved capacity in electric cars, batteries, and heat storage will bring a widespread use of microgrids closer to reality (Meeus, 2014). Better storage will lessen the dependence on the main grid connection (Meeus, 2014). Communities could invest in a bigger number of renewable resources and draw more benefits from the generated and stored energy (Meeus, 2014). Overproduced energy can be stored and further uses of it can be explored. Missouri University of Science & Technology is working on advanced energy storage of a small scale off-grid microgrid system of a residential complex on the university campus (Hardesty, 2015). The lithium ion battery storage allows residents to use excessive energy into charging a plugin hybrid car allowing them to drive 19 miles on electricity before it switches to the hybrid system (Hardesty, 2015). This ongoing study gives a great perspective for the possibilities of microgrids. They can not only improve the way we supply energy to our 28
homes, but also influence the sustainability factor of other aspects of human activity. Bringing green energy to private transport, as in the example, means having microgrids in remote areas is even more economical and environmentally friendly. With a widespread use of microgrids equipped with good storage capacity, having a spread-out urban fabric will no longer bring problems such as transport pollution and energy supply inefficiency.
Fig 25. Residential Complex at Missouri S&T, Microgrid Research Project, 2015, from Hardesty
Fig 26. Charging of a Plugin Hybrid Car in Missouri S&T, 2015, from Hardesty
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A popularization of microgrid systems can be a sustainable and affordable response to the increasing population and built fabric of the cities and towns. In Scotland a continuous migration and population growth towards rural areas can possibly make the infrastructure of a main grid an expensive option. Off-grid distribution networks can lessen the financial impact of such dispersal of the country’s built fabric. California is a contemporary example of this scenario (Meeus, 2014). For California it has become financially unjustifiable to spend billions of dollars for expensive aluminium-steel cables stretching across thousands of miles (Ricketts, 2010). This in combination with the transmission and distribution losses of conventional grid systems has driven the state to invest $26.5 million in grants for microgrid projects (John, 2016). A shift to microgrids has allowed California to supply its energy with a more affordable method. The popularization of decentralized energy systems such as microgrids can reduce the role of larger power plants and the main grid even further. It can change the power generation business model and have an impact on the energy supplier companies (Meeus, 2014). Both the tariff structure and grid operation could be affected (Meeus, 2014). Normally, it is an obligation for power grid companies to offer universal prices for its services (Meeus, 2014). In the scenario where a great number of people go off-grid or use the main grid only as a back-up, power companies will lose many of their consumers. This may lead to an increase of the prices of conventional energy supply systems and further enhance the interest in microgrids as it will be the cheaper option (Meeus, 2014).
Fig 27. Solar Panels Serving an Islanded Microgrid, Borrego Springs Microgrid Project, CA, United States, 2016, from Microgrid Projects Map
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Existing power companies could change their role in the future, as management of the private grids will be necessary (Meeus, 2014). In the United Kingdom there already are companies that are starting to sustain private networks, such as UK Power Networks which is involved in the energy supply strategies for a number of British airports (Meeus, 2014). There is a revival of network companies who seek to work on a local level. To a great extent, they are motivated by the local governments’ smart city initiatives (Meeus, 2014). Having in mind that it is one of the biggest energy consumer sectors in United Kingdom and the greatest in Scotland (Fig 3), it can be concluded that it is a matter of time for private companies to start working in the domestic sector as well. Thus, widespread use of microgrids can lead to a reduction in energy price on the local market (Chowdhury, 2009:10). Governmental policies could push consumers and investors in seeking for alternative strategies of sustainable energy supply. The government of the United Kingdom has ambitions of implementing zero carbon requirements for domestic building constructed by 2016 (Grierson, 2009:147). That means homes would have to eliminate carbon emissions as a product of their energy use (Grierson, 2009:147). The proposed requirement, Code Level 6, is for power generation only from on-site renewables (Grierson, 2009:147). Meeting such requirement would lead to a higher initial cost for construction and planning. Suggested estimates are up to 30% higher cost of the building process (Grierson, 2009: 147). Meeting these requirements by a single household will be a difficult task. Microgrid systems can be the answer as the generation of renewable sources are shared by the community, possibly bringing down the cost of the initial investment. Additionally, the energy optimization strategies of the system suggest that a smaller number of renewable sources could meet the energy demand of the community compared to the scenario where every household depends on their own on-site energy generation. The popularization of microgrids can be one of the few possible solutions for meeting these sustainability goals in the near future. It is difficult to estimate how far decentralization of energy supply can go, but a scenario of a revolution of such kind could be assumed (Meeus, 2014). Migration as a result of the benefits of a widespread application of microgrids to rural areas can change the built fabric of the country. The domestic sector can significantly expand in the rural areas. This could define city centre as the commercial core, while the countryside can be identified by the domestic scale. This connects with the decentrists approach to urban development and more specifically the multi-nucleated city (Frey, 1999:36). In this urban model the uses that are concentrated in the dense urban core are dispersed into smaller centres, creating a number of urban districts or villages (Frey, 1999:36). This theory can overlap with the idea of a widespread use of microgrids as the position of the villages can be influenced by the renewable energy resource abundance. The reshaping of the domestic sector can reduce the carbon dioxide pollution of the country creating a built form in which the high demand buildings are the ones served by microgrids. Thus, making the whole country very sustainable in its energy supply.
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6.2 Overcoming Challenges of Application Microgrids have a lot of potential in meeting the needs of energy consumers and simultaneously solving economic and environmental problems on a larger scale, but as a fairly new system they face a number of challenges. In chapter 3.3 the key challenges are discussed – the high cost of the system, technical difficulties, and the absence of a regulatory system. In order to promote a widespread use of microgrids in Scotland solutions to these problems will be necessary. Even though microgrids can be a perfect solution for the energy needs of rural communities in Scotland, financial difficulties must be overcame. As already pointed out, microgrid systems require a big initial investment. It is necessary to find ways to promote funding of microgrid and other renewable energy projects in order to take full advantage of the renewable resource abundance in the country. Probably debt crowdfunding can be the financial innovation that supports such ideas to become reality. A pioneer in this funding strategy is the project for a wind turbine installation in village of St Briavels, situated on the border of England and Wales (Friggens, 2016). It changed the nature of crowd-funding, shifting it from a donation-based strategy to an investment mechanism (Friggens, 2016). The project was planned by finance specialists and on a later stage it was open for investments from the public. Each investor had a share of the profits from the electricity sale in the next 25 years (Friggens, 2016). This meant that locals, non-locals, businesses, trusts, and charities had the possibility to contribute as little as 5 pounds (Friggens, 2016). Promotion of strategies such as crowd funding which reach out to wider community, can provide the financial support that expensive microgrid projects require.
Fig 28. (left) St Briavels Wind Turbine in Construction, Fig 29. (right) and completed, 2013, by Friggens
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Technical and management issues should be resolved for a widespread application of microgrids. The answer lays in provision of research and expertise in the sphere of engineering and information technology. Skilled staff is required to further develop and manage the systems. Currently in Scotland big energy companies and academic institutions work together to broaden the renewable energy and smart grid market which microgrids are part of. The Smart Grid Working Group is formed to further develop the 2020 vision of Scotland (Scottish Smart Grid Sector Strategy, 2012). Its current members are SSE, Scottish Power, GE Energy, Cisco, University of Strathclyde, and Scottish Enterprise (Scottish Smart Grid Sector Strategy, 2012). One of their driving ideas is to advance the training and education of a skilled workforce that will enable the industry to grow (Scottish Smart Grid Sector Strategy, 2012). The working group is positive that such strategy will create new job opportunities and economic wealth in Scotland and can further develop on an international level with export of services and technologies (Scottish Smart Grid Sector Strategy, 2012). It is important to have a supportive regulatory system because the public position needs to be clear. New technologies normally face institutional and economic barriers before they gain a stronger public interest (Abu-Sharkh, Li and Markvart, 2005:5). Having good reasons to pursue wider microgrid application means that the regulatory issues should be addressed through policies. This will require a support from the public and commerce sectors (AbuSharkh, Li and Markvart, 2005:5). Keeping in mind that the goal for a greener future of Scotland is a driving force for a lot of improvements in different spheres, quickly implementing an adequate regulatory system for microgrids is a possible scenario. Having shown that there are many financial benefits for microgrid use in remote communities and with increased funding for technical expansion, the only necessary step for mass popularization of microgrids is proper public awareness.
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Conclusion Following the data from the weather changes throughout the years, it is evident that pollution from human activity is currently affecting the planet’s climate. In addition, the expected great increase of highly polluting and inefficient energy supply has the prospect of creating numerous challenges. Reducing CO2 emissions on a global level can change the course of Earth’s future to a greener and safer place for people to live in. As burning of fossil fuels is one of the major contributors of environmental pollution, it is reasonable to work towards reducing it and focus on finding alternative methods of energy supply. Scotland is part of this global problem. Its energy demand is average compared to the rest of the world. There are many problems as well as great potential in the energy supply of Scotland. The conventional electricity supply method via the main grid is inefficient - its excessive electricity production in order to meet demand further contributes to the CO2 emission levels. On the other hand, the abundance of renewable energy sources in Scotland make it a perfect place for technological innovations in energy supply such as the application of microgrid systems. The microgrid system’s flexibility and intelligent management strategy make it a great option for communal energy supply. Microgrids work with a variety of distributed energy sources which are close to the system. This brings numerous benefits such as improved efficiency, supply autonomy, decrease in energy cost, improved power quality, reliability, etc. In Scotland microgrid systems can be a good option for rural communities as the most of the renewable energy sources are located outside urban areas. At the same time, rural Scotland it a very important part of the country, where 18.7% of the population is situated (Scottish Government, 2015). The good quality of life, cheaper household prices, autonomous life are just some of the reasons why many Scots prefer to live in remote areas. Future positive migration to rural parts is also a very likely scenario. The elderly are typically the ones in favor of rural life and their number is raising with a fast pace. Applying microgrids to a wider extend in Scotland could bring numerous changes in the country. Implementing microgrid systems in rural Scotland can lessen the high number of energy poor households in the areas and improve the consumers’ everyday life. It can resolve problems of conventional energy supply. The main energy network’s infrastructure will not need to be developed in great distance to supply it consumers as it will be replaces by microgrid systems. This will reduce the inefficiency of the main grid and the transmission losses. Microgrid application can lead to more environmental sustainability, such as carbon neutral power generation, thanks to its close connection to renewable energy sources and great efficiency of the supply. The Fair Isle and Isle of Eigg case studies prove that application of microgrid systems is suitable for rural Scotland and has the potential to be expanded. They provide a model for future projects and opportunities for more research on the technology and management of the 34
system. There are already big investments with significant implications in other parts of the world which lead to the idea that Scotland also can change in the near future driven by an interest of off-grid energy supply. Strategies and initiatives in the spheres of engineering, business, economy, and legislation could resolve the implementation challenges and push Scotland to a greener future of a wider microgrid use. Scotland’s ambition for energy generation only from renewables together with the British targets for zero carbon building will possibly increase the public perception for the potential of the intelligent microgrid system and speed up of the processes of its wider application. A widespread use of the system can attract even more people to rural Scotland, making it a more desirable place to live in. It can decrease the environmental impact of the biggest energy consumer – the domestic sector and potentially change the urban fabric of the country. Continuous investment in microgrid sustainable projects can make Scotland a leading country in environmentally sustainable technologies. Microgrids are a green and hugely beneficial option for the energy supply of rural Scotland. They can be the much needed solution for the energy needs of the small, remote communities throughout Scotland. Their implementation and expansion throughout the Scottish highlands will both preserve the environment and provide the ever-increasing population with a cheap source of renewable energy.
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