Blake Lapthorn were pleased to welcome Andrew Watkin, Partner and Head of Energy and Marine team at Carter Jonas, as speaker at its green breakfast held on 4 May in Oxford.

1. Green Breakfast - Renewable Energy
Opportunities

2. Carter Jonas
National firm of property consultants
dating back to 1855
30 Offices across England & Wales
Multi disciplined firm:
Residential
Rural Land & Business
Commercial
Planning & Development
Architecture & Building Consultancy
Specialist Teams:
Energy & Marine
GIS CAD & Mapping
Minerals and Waste
Infrastructures

3. The Energy Team
(Energy & Marine)
West/South West Eastern/South Northern
East

4. Current projects
Clients include: Land and property
owners, developers, energy
companies, utility companies,
investors in the sector,
businesses with high energy
Wind Farm
demands Wind medium
Wind small
Hydro
Proven track record: 200+ Solar - roof mounted
Solar - ground mounted
ongoing projects AD
Biomass
Strong market knowledge and
experience of renewable energy
sector, including manufacturers &
their products

5. UK Renewables - drivers:
(not exhaustive)
UK signed up to EU Renewable Energy Directive - by 2020 15% of energy
from renewables
- Aim to tackle climate change in UK and reduce our CO2 emissions
between ’09 and 2030 by 750M tonnes
- Reduce fossil fuel demands by circa 10% and gas imports by 20-30%
versus likely use by 2020
- Create employment
Carbon Reduction Commitment – CRC (users of 6000mWh/annum -
£500K+)
Middle East – supply of fossil fuels…reliability??
Oil price (Brent Crude) $125/barrel
UK Nuclear development – effects of Fukushima

6. Proposed Electricity Market
Reform
Announced by Government - Dec 2010
“Seismic shift” and proposals include long term contracts and a carbon price
floor
Aims include electricity market shake up to ensure £100++bn of infrastructure
investment by 2020
Proposals include Feed-in Tariff scheme using contracts for difference (CfD)
to create a stable revenue stream for low carbon generators
Intention to set an emissions performance standard – ruling out gas power
stations not fitted with CCS tech
Carbon floor price plans – Treasury – 3 scenarios up to either £20/30/40 per
Tonne by 2020.
Plans were out to consultation to March 2011, possible legislation by year
end?

7. Support Mechanisms at present
Renewables Obligation and ROCs
Feed-in Tariff (FiT) – up to 5MW
RHI – forthcoming July 2011 on a phased basis

8. Background to the Renewables
Obligation
UK’s support scheme for large renewable electricity projects – runs
to 2037
Obligation on UK electricity suppliers to source a proportion of their
electricity from renewables
ROC – the “green certificate”
27 April 2011: average single ROC trading at £50.54
In England and Wales renewable projects receive varying ROC
support levels

9. ROC Bandings
Technology Payment examples:-
Onshore Wind 1.0 ROC per MWH
Offshore Wind 1.5
Hydro-electric 1.0
Solar Photovoltaic 2.0
Wave/Tidal Steam 2.0
Anaerobic Digestion/Energy Crops 2.0
Biomass with CHP 2.0 (1.5 without CHP)

10. Feed-in Tariff (FiT) – Micro to
Medium Scale Generation
1st April 2010 - AD, Hydro, Micro CHP, Solar PV, Wind
Designed to encourage the adoption of renewable energy sources
For projects sub 5 megawatts (MW) in generating capacity
FiT means smaller scale schemes are also viable despite higher
capital costs per MW installed
Has led to more property owners developing their own projects
Guarantees a fixed payment per kilowatt hour (kWh) generated for
20 years, apart from solar pv which is 25 years, export tariff too.

11. Project examples
we will look at today:
Wind – Commercial, medium, micro
Solar pv
Anaerobic Digestion Plant
Hydropower

12. Wind - Commercial Scale
100m -135m tall to the tip of
the blades
2-3MW per turbine
Wind farms and merchant
sites
Developers and large
companies
ROC’s

13. Wind - Medium Scale
40 – 60m tall
100kW – 500kW
Located at farms, schools,
companies
Developers, local authorities
individuals
Suitable for the Feed-in Tariff

14. Micro wind
Gaia 11kW - 18m to hub
Less than 100 kW
Agricultural and business use.
Suitable for individuals and
small companies
Qualify for Feed in Tariff
Fewer planning restrictions
than larger turbines

15. Wind Energy - site selection
Wind speed
Proximity to Residential
properties: noise and shadow
flicker
Aviation and Radar
Microwave links from telecom
sites
Landscape designations
Historical features
Grid capacity and length of
connection
Access costs

16. Constraint Mapping
Note: Map has Client’s approval for
Carter Jonas use in PR

17. Wind Energy: Feed-in Tariff rates
Generati
Duration
on Tariff
Energy Source Scale
(p/kWh)[
A] (years)
Wind ≤1.5kW 34.5 20
Wind >1.5 - 15kW 26.7 20
Wind >15 - 100kW 24.1 20
Wind >100 - 500kW 18.8 20
>500kW -
Wind 1.5MW 9.4 20
Wind >1.5MW - 5MW 4.5 20

18. Turbine Options – examples of
micro/medium
Gaia 11kW 21m £60k
Endurance 50kW
WES 18 80kW
Northwind 100 100kW
WES 30 250kW
Vergnet 275 275kW
Enercon E-33 330kW 67m £760k
Note: E-33 is IEC 61400-1 Certified (European engineering
standard)

19. Micro Wind
example Gaia 11kW example at 5.5 m/s
Generation
Estimated annual electricity
production (MWh) 29.8716
Wholesale electricity price (MWh)
£30.00
Feed in Tariff £267.00
LEC Price £4.70
Estimated present annual revenue
£9,012
Estimated present operating margin Estimated Construction Costs
£8,564 Grid Connection £2,200
Turbine cost £50,000
Estimated Pre Construction Costs Infrastructure £3,800
Planning £3,000 Total £56,000
Technical design (inc Met Mast)
£1,000 Return
Appeal (if required) £0 Straight Return 14.3%
Ecological Assessments £0
Grid Studies £0
Total £4,000

20. Medium Wind Enercon E-33 330kW
example at 6.4 m/s
Generation
Estimated annual electricity
production (MWh) 621.522
Wholesale electricity price (MWh)
£30.00
Feed in Tariff £188.00
LEC Price £4.70
Estimated present annual revenue
£138,413
Estimated present operating margin Estimated Construction Costs
£133,752 Grid Connection £90,000
Turbine cost £500,000
Estimated Pre Construction Costs Infrastructure
Planning £20,000 incl foundations £102,500
Technical design (inc Met Mast) Total £692,500
£25,000
Appeal (if required) £0 Return
Ecological Assessments £15,000 Straight Return 17.6%
Grid Studies £7,500
Total £67,500

21. Solar Photovoltaics
Solar PV uses semi-conductor
technology to convert solar
irradiation in to DC electrical
current
Established technology but
expensive when compared to
conventional sources
Feed-in Tariff support has led to
a viable investment option sub
50kW

22. Feed in Tariff Rates – Solar PV
Subject to FAST TRACK REVIEW
Generation
Duration
Tariff
Energy Source Scale
(p/kWh)[A] (years)
Solar PV ≤4 kW New 36.1 25
Solar PV ≤4 kW Retrofit 41.3 25
Solar PV >4 - 10kW 36.1 25
Solar PV >100 - 500kW 29.3 25
>100kW -
Solar PV 5MW 29.3 25
Solar PV Standalone 29.3 25
* 9% annual digression of all rates for installations commissioned after March 31st 2012

23. Solar pv – fast track potential
rates……?
Scale Existing FiT (pence/kWh) Duration
(years)
Solar PV>10 - 100kW 31.4 25
Solar PV>100kW - 5MW 29.3 25
Solar PV Stand-alone 29.3 25
Scale Possible FiT (pence/kWh) Duration
(years)
Solar PV>50kW - ≤150kW 19 25
Solar PV>150kW - ≤250kW 15 25
Solar PV>250kW - ≤5MW 8.5 25
Solar pv Developers v DECC – Litigation….

24. Rooftop Array requirements
South facing roof
Load bearing capacity of around 15kg/sqm
Preferably outside of visually sensitive locations
such as conservation areas
Tiled/composite sheet roofs are easier to fix
panels to though it is possible on fibre cement
Adequate on site transformer capacity – ideally
50 kVa or larger
Away from potential shading obstacles such as
trees (3.5 times height)
Planning permission will usually be required
Approximately 7.5 sq m of usable roof space
required per kWp
Summer on site electricity demand ideal

25. Solar pv rooftop array returns
Example 8kW Array on 72 sq m usable roof
Generation
Estimated annual electricity
production (kWh) 7,120
Electricity price saving (kWh) £0.10
Feed in Tariff £0.361
Estimated present annual revenue
£3,282
Estimated present operating margin
£3,182
Estimated Construction Costs
Estimated Pre Construction Costs Grid Connection £0
Planning £500 Array components £28,000
Technical design £1,000 Infrastructure £0
Appeal (if required) £0 Total £28,000
Ecological Assessments £0
Grid Studies £0 Return
Total £1,500 Straight Return 10.8%
* This model assumes all of the electricity is used on site, south facing, 20 degree pitch

26. Ground Mounted Arrays – troubled
times!
Solar parks or farms
Commercial scale >500kW
3ha – 15ha of land take
Flat or south facing and well screened
11kv line or 33kv substation required
Most developers seeking 3MW+ near 33kv
infrastructure
Option and lease market on hold
Rents £1000 - £2000 per acre RPI linked
for 25 year term

27. Ground Mounted Array
Example of projected returns 5MW Scheme
(12ha)
Generation
Estimated annual electricity
production (kWh) 4,860,000
Wholesale Export price (kWh) £0.03
Feed in Tariff £0.293 (pre review
rate)
LEC Price £0.00496
Estimated present annual revenue
£1,591,542
Estimated present operating margin Estimated Construction Costs
£1,422,347 Grid Connection £600,000
Array components £10,214,571
Estimated Pre Construction Costs Infrastructure £805,000
Planning £40,000 Total £11,619,571
Technical design £15,000
Appeal (if required) £0 Return
Ecological Assessments £10,000 Straight Return 12.2% (pre review
Grid Studies £10,000 rate)
Total £75,000

28. Anaerobic Digestion – how does AD
work?
Courtesy of Biogas Nord UK

29. AD key requirements and output
Regular and reliable source of substrate
Sufficient land to receive digestate
Access to a good road network
Accessible electrical grid connection
Upwards of 10% return on successful plants
Electricity sales
ROC OR FiT support
Gate fees
Nitrogen benefits

30. Hydropower 96 kW example
A “low head” scheme located in North Wales
The proposed scheme is to be located at the upper of multiple
weirs with a 2.5m head feeding two Archimedes screw turbines
side by side
Recommendation from the Environment Agency secured for 70% of
the water above hands off flow for winter months and 50% for the
summer months
The full load output of the turbine will be 96kW

31. Hydropower
Example of projected returns from 96kW
example
Generation
Estimated annual electricity
production (kWh) 292,231
Wholesale Export price (kWh) £0.03
Feed in Tariff £0.178
Estimated annual revenue £60,784
Estimated present operating margin
£52,784
Estimated Pre Construction Costs Estimated Construction Costs
Planning & licensing £10,000 Grid Connection £92,700
Technical design £5,000 Mechanical Hydro £90,710
Appeal (if required) £0 Civil Hydro £122,490
Ecological Assessments £5,000 Total £305,900
Grid Studies £2,000
Total £22,000 Return
Straight Return 16.1%

32. FiT review
Confirmed at the Spending Review, the FiT review will determine
how the efficiency of FITs will be improved to deliver £40 million of
savings, around 10%, in 2014/15
The review is in 2 phases:
April 2012 - comprehensive and as set out when the FIT scheme
started, will consider all aspects of the scheme
Current fast track review - large scale solar pv and AD this has a 6
May deadline for consultation with 1 August 2011 implementation

33. Forthcoming Renewable Heat
Incentive (RHI)
Final details of the RHI announced in March by DECC
Commence July 2011
Support for a range of technologies and fuel uses including solid and
gaseous biomass, solar thermal, ground and water source heat-pumps, on-
site biogas, deep geothermal, energy from waste and injection of
biomethane into the grid
RHI will have scheduled 4 yearly reviews starting in 2014 and being
implemented in 2015!?
Phased implementation
Phase 1 - targeting large emitters in the non domestic sector which will
include the industrial and commercial sectors, not for profit organisations
and communities
As part of the first phase the Government will also introduce the
Renewable Heat Premium Payments (RHPP) in July 2011 for the domestic
sector, having ring fenced £15M which they will use to make premium
payments to households who install renewable heating
Phase 2 of the RHI will include long-term support for the domestic sector
which will be introduced in 2012

34. How Carter Jonas can assist
Initial site assessments/screening (WindPro, HyrdaA,
GIS)
Feasibility studies
Financial Modelling
Advice on equipment and procurement
Initial grid investigations and negotiations, aviation consultation
Planning
Procurement
Valuation/due diligence/brokerage

35. Thank you for your time
Any questions?
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