March 2010 Developing Community Hydro Schemes in Oxfordshire Alison Wilshaw Renewables Advisor TV Energy

March 2010 Developing Community Hydro Schemes in Oxfordshire – Learning from the Goring and Streatley Project What can we learn from the process of the Goring and Streatley project?What can we learn from the process of the Goring and Streatley project? Can we use this experience to assist the delivery of future hydro projects in our area?Can we use this experience to assist the delivery of future hydro projects in our area? Guidelines to assist communities in the development of future hydro schemesGuidelines to assist communities in the development of future hydro schemes

March 2010 Goring and Streatley Hydro Project Project managed by one community member (Dave Holt) with support from other membersProject managed by one community member (Dave Holt) with support from other members Run-of-river scheme, - more complicated than mill stream schemesRun-of-river scheme, - more complicated than mill stream schemes Joint initiative between two communities; undertaken on not-for-profit basisJoint initiative between two communities; undertaken on not-for-profit basis

March 2010 Goring and Streatley Hydro – Stages in the Development Process Feasibility Study (July 2006)Feasibility Study (July 2006) Stakeholder meeting (March 2007)Stakeholder meeting (March 2007) FundraisingFundraising Outline Design Study (completed March 2008) suggested peak output of 246kW with three spiralsOutline Design Study (completed March 2008) suggested peak output of 246kW with three spirals Photomontage of Goring Hydro Scheme

March 2010 Goring and Streatley Hydro – Stages in the Development Process Baseline Flood Risk Assessment (July 2008): slight increase of flood risk during 100 year event Flood Risk Modelling, (October 2009 – March 2010)Flood Risk Modelling, (October 2009 – March 2010) Environmental Survey – river ecology, visual and landscape survey (June 2008 – June 2009)Environmental Survey – river ecology, visual and landscape survey (June 2008 – June 2009)

March 2010 Goring and Streatley - what next? Share issue / fundraising Planning Application (SODC) Land Drainage Consent and Impoundment LicenseLand Drainage Consent and Impoundment License Detailed design and specificationDetailed design and specification Selection of contractor for constructionSelection of contractor for construction

March 2010 TV Energy Low Head Hydro Study Summary of South East low head Hydro Potential (assumes 2004 technology) Technical Potential [kW] Practical Potential [kW] Short Term Realisable Potential [kW] General Sites (24 sites) Thames Weirs (5 sites) Mills (<10 kW) (8 sites) TOTAL13, Low Head Hydro Power in the South-East of England – A Review of the Resource and Associated Technical, Environmental and Socio-Economic Issues, TV Energy, 2004

March 2010 Developing a community hydro scheme – will it work? Basic data: Flow, Q and Head, HBasic data: Flow, Q and Head, H P (kW) = 7 x Q (m³/sec) x H (m)P (kW) = 7 x Q (m³/sec) x H (m) Schemes on the River Thames are generally low-headSchemes on the River Thames are generally low-head Schemes over 10 kW may be suitable for further studySchemes over 10 kW may be suitable for further study Several consultancies which deliver low cost or free prefeasibility studiesSeveral consultancies which deliver low cost or free prefeasibility studies

March 2010 Community hydro – key site data Proximity to sub-station or load for electricity (hotel, shops, houses)Proximity to sub-station or load for electricity (hotel, shops, houses) Landowner permissionLandowner permission Access for construction trafficAccess for construction traffic Space at side of weirSpace at side of weir Existing mill streamExisting mill stream

March 2010 Permissions Involve the Environment Agency at earliest stagesInvolve the Environment Agency at earliest stages Environmental SurveysEnvironmental Surveys Flood Risk AnalysisFlood Risk Analysis FisheriesFisheries Abstraction License; Impoundment LicenseAbstraction License; Impoundment License Local Planning AuthorityLocal Planning Authority Lease of land from landownerLease of land from landowner

March 2010 Feed-in-Tariff for Hydro schemes In addition to the above, a guaranteed export price of 3 p/kWh Worked Example: Head: 2m, Flow rate: 3 m³/sec P = 7 x 2 x 3 = 42 kW Annual generation at 50% capacity factor: 182,070 kWh Installed c. £5000 / kW = £210,000 Annual revenue of scheme = 182,070 x ( ) = c. £37,871 Simple payback 5.6 years Scale Year 1 Year 2 Year 3 Lifetime < 15 kW 19.9 p/kWh 20 yr 15 – 100 kW 17.8 p/kWh 20 yr 100kW – 2 MW 11 p/kWh 20 yr

March 2010 Financing the project Project capital may be financed through:Project capital may be financed through: –Equity in the project, through local share issue –Loans, but need to be long term –Finance packages negotiated with financial management companies –Part debt, part equity – banks may be more willing to lend where equity can be used to leverage further funds –Direct investment, e.g. Eon, EDF, to enlarge their renewables portfolio

March 2010 Setting up the legal structures Form a legal entity to access grants, loans, or to issue sharesForm a legal entity to access grants, loans, or to issue shares –Private Limited Company –Industrial and Provident Society –Not-for-profit organisation –Co-operative group The type of structure depends on the purpose of the legal entityThe type of structure depends on the purpose of the legal entity

March 2010 Project Planning (1) Year One Year Two Q1Q2Q3Q4Q5Q6Q7Q8 Technical Site Survey Detailed Design Feasibility / Outline Design Surveys and Planning Environmental Survey Planning Flood Risk Analysis Financial Planning share issue Share issue Fundraising, loans and grants Legal & Management Stakeholder Meeting Formation of Industrial and Provident Society Establish Company

March 2010 Project Planning (2) Year Three Year Four Q1Q2Q3Q4Q5Q6Q7Q8 Technical Construction & Installation Operation & Maintenance Civil works Surveys and Planning FinancialCapital Income generation Expenditure Legal & Management Power Purchase Business Management

March 2010 Other examples of community energy projects Torrs Hydro, New Mills, DerbyshireTorrs Hydro, New Mills, Derbyshire Baywind Energy Co-operative, CumbriaBaywind Energy Co-operative, Cumbria Westmill Windfarm Co-operative, OxfordshireWestmill Windfarm Co-operative, Oxfordshire Energy4All – – South Somerset Hydropower GroupSouth Somerset Hydropower Group

March 2010 South Oxfordshire Hydro Communities Dorchester-on-Thames (Days Lock Weir)Dorchester-on-Thames (Days Lock Weir) Henley-on-ThamesHenley-on-Thames Whitchurch / PangbourneWhitchurch / Pangbourne Benson / Wallingford / Brightwell-cum- SotwellBenson / Wallingford / Brightwell-cum- Sotwell

March 2010 Guidelines for Developing Community Hydro Schemes in Oxfordshire Thank you for listening