1. Opportunities for Local Energy
Andrew Morton - Local Energy Scotland

2. Introduction The implications of 2045? Asset Lifespan (20 years)
All installations should have the potential for zero carbon from 2025
All regulation and legislation change has to happen before 2025
All incentives (and disincentives) need to be in place by 2025
The future of the gas grid must be determined by 2025
It should be socially unacceptable not to plan for zero carbon from 2025 now
“Transition” needs to be renamed “Switch”
New Asset Design & Manufacture
Likely to require an additional 2 to 5 years
Route Map definition / clarity required by 2020
Existing Zero Carbon Options
Those that already exist can be implemented next
Those that provide benefits should be implemented immediately
On our website, you will find the CARES toolkit that will take you through the step by step process of developing a renewable project. Within the tool kit there are technology specific and project development modules and the finance model which is a tool to help you assess the financial viability of your proposed project.
We have cases studies where you can explore and find out how communities are already benefitting from installing renewable energy technologies.
The Partnership Portal is an easy way to find potential project partners. From this, commercial developers can use the portal to seek a community partner and likewise community groups can use this to seek funds for a project.
You can use the mini competition template to help your group tender and appoint a contractor for legal, financial or project management services.

3. Introduction Immediate opportunities? Heat Generation
Renewable Heat Incentive (RHI) still in operation
RHI likely to close in April 2021 (the terms of closure may impact timescales for pre-accreditation, pre-registration &/or tariff guarantees)
Energy for Transport
Electricity generation for EVs - dependent on access to vehicles
Hydrogen production - not yet commercial, but improving
Biodiesel & Biomethane - beyond the scope of this presentation
Electricity Generation
Feed in Tariff (FiT) closed to new customers from the end of March 2019
Grid constraints continue to limit implementation in many areas
Some technology costs continue to fall
Significant potential remains as part of a local energy system
On our website, you will find the CARES toolkit that will take you through the step by step process of developing a renewable project. Within the tool kit there are technology specific and project development modules and the finance model which is a tool to help you assess the financial viability of your proposed project.
We have cases studies where you can explore and find out how communities are already benefitting from installing renewable energy technologies.
The Partnership Portal is an easy way to find potential project partners. From this, commercial developers can use the portal to seek a community partner and likewise community groups can use this to seek funds for a project.
You can use the mini competition template to help your group tender and appoint a contractor for legal, financial or project management services.

4. Subsidy free electricity generation
Benefits
Keep in mind
Gives a ball park indication of viability
Keeps inputs consistent
Uses an audited financial model with reliable output
Every project differs in some (or all) ways to a generic template
The parameters used are also time specific, as markets will change
Regulations, legislation, technical viability, etc. all remain just as critical
Wind
50kW
500kW
1500kW
Capacity Factor
20%
31%
Project cost per kW
£4,400
£1,950
£1,350
O&M cost per kW
£92
£59
£35
Hydro
37%
£6,800
£3,300
£3,200
£125
£84
£50 PV
10%
£1,000
£935
£800
£15
£13
£10
On our website, you will find the CARES toolkit that will take you through the step by step process of developing a renewable project. Within the tool kit there are technology specific and project development modules and the finance model which is a tool to help you assess the financial viability of your proposed project.
We have cases studies where you can explore and find out how communities are already benefitting from installing renewable energy technologies.
The Partnership Portal is an easy way to find potential project partners. From this, commercial developers can use the portal to seek a community partner and likewise community groups can use this to seek funds for a project.
You can use the mini competition template to help your group tender and appoint a contractor for legal, financial or project management services.
Asset Life 25 years Rent 5% (gross revenue)
Low export value (SEG) 4.192p/kWh Higher export (PPA) 5.24p/kWh
Interest rates used at 0% & 5% Long term debt of 15 & 20 years used
No corporate tax (assumed gifted) No business rates (relief available)

5. Project IRR at 100% export
On our website, you will find the CARES toolkit that will take you through the step by step process of developing a renewable project. Within the tool kit there are technology specific and project development modules and the finance model which is a tool to help you assess the financial viability of your proposed project.
We have cases studies where you can explore and find out how communities are already benefitting from installing renewable energy technologies.
The Partnership Portal is an easy way to find potential project partners. From this, commercial developers can use the portal to seek a community partner and likewise community groups can use this to seek funds for a project.
You can use the mini competition template to help your group tender and appoint a contractor for legal, financial or project management services.

6. Project IRR with increasing use on site
Small Scale
PV 10p/kWh offset 4.19p/kWh export
PV 15p/kWh offset 4.19p/kWh export
PV 10p/kWh offset 5.24p/kWh export
PV 15p/kWh offset 5.24p/kWh export
Wind 10p/kWh offset 4.19p/kWh export
Wind 15p/kWh offset 4.19p/kWh export
Wind 10p/kWh offset 5.24p/kWh export
Wind 15p/kWh offset 5.24p/kWh export
Hydro 10p/kWh offset 4.19p/kWh export
Hydro 15p/kWh offset 4.19p/kWh export
Hydro 10p/kWh offset 5.24p/kWh export
Hydro 15p/kWh offset 5.24p/kWh export
On our website, you will find the CARES toolkit that will take you through the step by step process of developing a renewable project. Within the tool kit there are technology specific and project development modules and the finance model which is a tool to help you assess the financial viability of your proposed project.
We have cases studies where you can explore and find out how communities are already benefitting from installing renewable energy technologies.
The Partnership Portal is an easy way to find potential project partners. From this, commercial developers can use the portal to seek a community partner and likewise community groups can use this to seek funds for a project.
You can use the mini competition template to help your group tender and appoint a contractor for legal, financial or project management services.

7. Income per kWh required
On our website, you will find the CARES toolkit that will take you through the step by step process of developing a renewable project. Within the tool kit there are technology specific and project development modules and the finance model which is a tool to help you assess the financial viability of your proposed project.
We have cases studies where you can explore and find out how communities are already benefitting from installing renewable energy technologies.
The Partnership Portal is an easy way to find potential project partners. From this, commercial developers can use the portal to seek a community partner and likewise community groups can use this to seek funds for a project.
You can use the mini competition template to help your group tender and appoint a contractor for legal, financial or project management services.

8. Reducing Project Costs
On our website, you will find the CARES toolkit that will take you through the step by step process of developing a renewable project. Within the tool kit there are technology specific and project development modules and the finance model which is a tool to help you assess the financial viability of your proposed project.
We have cases studies where you can explore and find out how communities are already benefitting from installing renewable energy technologies.
The Partnership Portal is an easy way to find potential project partners. From this, commercial developers can use the portal to seek a community partner and likewise community groups can use this to seek funds for a project.
You can use the mini competition template to help your group tender and appoint a contractor for legal, financial or project management services.
Collective Purchase - example: Farm Scale Solar Framework Tender
Typical single installation kW PV on farm buildings ~ £900 / kWp
As part of a procured cluster indicative tenders averaged ~ £700 / kWp
Still individual contracts, but a potentially a significant project cost reduction

9. Income from generation
Benefit of local offset
On our website, you will find the CARES toolkit that will take you through the step by step process of developing a renewable project. Within the tool kit there are technology specific and project development modules and the finance model which is a tool to help you assess the financial viability of your proposed project.
We have cases studies where you can explore and find out how communities are already benefitting from installing renewable energy technologies.
The Partnership Portal is an easy way to find potential project partners. From this, commercial developers can use the portal to seek a community partner and likewise community groups can use this to seek funds for a project.
You can use the mini competition template to help your group tender and appoint a contractor for legal, financial or project management services.
Benefit from export

10. Offsetting Non-Domestic Import Tariffs
On our website, you will find the CARES toolkit that will take you through the step by step process of developing a renewable project. Within the tool kit there are technology specific and project development modules and the finance model which is a tool to help you assess the financial viability of your proposed project.
We have cases studies where you can explore and find out how communities are already benefitting from installing renewable energy technologies.
The Partnership Portal is an easy way to find potential project partners. From this, commercial developers can use the portal to seek a community partner and likewise community groups can use this to seek funds for a project.
You can use the mini competition template to help your group tender and appoint a contractor for legal, financial or project management services.
The way some elements of a bill are charged is under review.
Some costs charged per unit (p/kWh) may be removed & additional standing charges added

11. Time of Use
Examples of time of use & per unit charges on non-domestic bills
Distribution Use of System (DUoS) (example below)
Balancing Services Use of System (BSUoS)
Renewables Obligation Charge
Feed in Tariff Charge
EMR CfD Payments
Climate Change Levy
Weekdays
00:00
00:30
01:00
01:30
02:00
02:30
03:00
03:30
04:00
04:30
05:00
05:30
06:00
06:30
07:00
07:30
08:00
08:30
09:00
09:30
10:00
10:30
11:00
11:30
12:00
12:30
13:00
13:30
14:00
14:30
15:00
15:30
16:00
16:30
17:00
17:30
18:00
18:30
19:00
19:30
20:00
20:30
21:00
21:30
22:00
22:30
23:00
23:30
Weekends
On our website, you will find the CARES toolkit that will take you through the step by step process of developing a renewable project. Within the tool kit there are technology specific and project development modules and the finance model which is a tool to help you assess the financial viability of your proposed project.
We have cases studies where you can explore and find out how communities are already benefitting from installing renewable energy technologies.
The Partnership Portal is an easy way to find potential project partners. From this, commercial developers can use the portal to seek a community partner and likewise community groups can use this to seek funds for a project.
You can use the mini competition template to help your group tender and appoint a contractor for legal, financial or project management services.
(SSE) Time Band
Typical cost
difference
% of green
DUoS (Red)
5.397 p/kWh
3.995 p/kWh
385%
DUoS (Amber)
2.349 p/kWh
0.947 p/kWh
168%
DUoS (Green)
1.402 p/kWh
0.000 p/kWh
100%

12. Income per kWh required
On our website, you will find the CARES toolkit that will take you through the step by step process of developing a renewable project. Within the tool kit there are technology specific and project development modules and the finance model which is a tool to help you assess the financial viability of your proposed project.
We have cases studies where you can explore and find out how communities are already benefitting from installing renewable energy technologies.
The Partnership Portal is an easy way to find potential project partners. From this, commercial developers can use the portal to seek a community partner and likewise community groups can use this to seek funds for a project.
You can use the mini competition template to help your group tender and appoint a contractor for legal, financial or project management services.