Author: Salvador Suarez

1. Strategies for promoting
RES in Islands
El Hierro 100 % RES
Island
Salvador suárez
Canary Islands Institute of Technology

2. • Energy framework of the Canary Islands
• El Hierro wind-pumped-hydro system
• ISLE-PACT Initiative

3. CANARY ISLANDS
They share many characteristics with other
European island regions
• Fragile ecosystems
with many species
and a big share of its
territory protected
• Economy heavily dependent on
tourism (12.000.00 tourist a year
contribute to 80 % of its GDP)
• Total energy dependence of
imported energy (96 % of energy
from oil)
• High rise of the electric demand
• Abundant RES potential
(3,000 - 4,500 eq. hrs.,
and 3,000 Sun hors)
Political commitment to sustainable
development
• Independent, small and weak
electrical systems

4. Energy Balance Canary Islands 2011
Sea and air
transport
4.022.634 Tep
7.337.665 Tep
CONVERSION FACTORS
Crude oil
1,0 Tep/Tm
Gas
1,1 Tep/Tm
Querosene
1,1 Tep/Tm
Diesel oil
1,0 Tep/Tm
Fuel oil
1,0 Tep/Tm
1.024.466 Tep
Electric power generation
2.097.200 Tep
19.919 Tep
Heat
1.341.974 Tep
Electricity
805.657 Tep
30.512 Tep
CONVERSION FACTORS
Electric energy
0,086 Tep/MWh
Wind
0,086 Tep/MWh
Photovotaic
0,086 Tep/MWh
Losses
Trans+Distr.
54.661 Tep
171,318 Tep
112,879 Tep
295.927 Tep
Municipal.
Island Auth.151,777 Tep
Region.Gov.
30.797 Tep

5. Installed Electric Power and Energy Produced
TOTAL
Power (MW)
3,177.3
9,368
Energy (GWh)
LANZAROTE
Power (MW)
Energy (GWh)
229.1
874.7
TENERIFE
LA PALMA
Power (MW)
Energy (GWh)
116.4
273.52
LA GOMERA
Power (MW)
Energy (GWh)
Power (MW)
Energy (GWh)
1,333
3,715
GRAN CANARIA
Power (MW)
Energy (GWh)
23.2
74.06
1,251.7
3,707
FUERTEVENTURA
Power (MW)
Energy (GWh)
EL HIERRO
Power (MW)
Energy (GWh)
13.1
44.87
210.8
677.97

6. Renewable Energy Potential
Solar Energy
Hours > 2,500 – 3,000 h/año
Radiation 5 - 6 kWh/m2 day
Wind Energy
Mean Wind Speed 6 to 8 m/s
Yield of wind farms: 3,000 – 4,500 eqiv. hours

7. PECAN (Energy Plan for Canary Islands) 2006: RES objectives 2015
Type
2006
PECAN (2015)
Wind
137 MW
1.025 MW
Hydro
1,3 MW
13,6 MW*
Solar Photovoltaic
0,6 MW
160 MW
80.000 m2
460.000 m2
Solar Thermal
Solar Thermoelectric
30 MW
Biofuels
30 MW
Waves
50 MW

8. MAXIMIZING PENETRATION OF RENEWABLE ENERGIES (RES)
Barriers to wind energy penetration in the Canary Islands
Electric System
Land Planning
Economic-Administrative
issues
Estrategy for maximizing RES penetration in the Canary
Islands in the power grids
Grid stability
studies
Energy
storage
Forecasting of wind and
solar resources
Demand
Management

9. EUROPEAN ISLANDS ELECTRICAL GRIDS
The small and weak island grids limit the penetration of variable and
intermittent RES.
Most islands have achieve their maximum level of RES penetration that their
electrical systems can support without risking grid stability, which makes it
difficult for private investors to installed new wind and solar systems.
New infrastructure for massive energy storage and R&D in new energy
vectors is needed to guarantee that new RES systems do not affect the
stability of the islands electrical systems, and European financial support is
a key issue.

10. DERLAB: Distributed Generation Laboratory
R+D+i lines
• Assessment of new approaches for electric network control
• Load and Storage Management
• Communication protocol interfaces aimed to improve management and
control strategies (ITC’s)
• Microgrid testing
• GD Interconnection elements testing
• Strategies for the integration of distributed generation sources (solar,
wind …) in the insular electric networks

11. ENERGY RESOURCE ASSESMENT AND FORECASTING
MEASUREMENT STATIONS NETWORK
• 23 RADIOMETRIC STATIONS: Estimation of photovoltaic
plant production
• 33 WIND STATIONS: Wind potential studies, which are
needed for feasibility analysis of wind farms at particular
locations
WEATHER FORECAST SERVICE: to estimate the
energy to be injected in the grid by photovoltaic and
wind generators within a 6-96 hours time horizon
(MM5, WRF).

12. DEMAND MANAGEMENT: Energy and water
20% of energy production goes to water desalination
and water distribution.
Use of desalinated water
Residential & touristic
374,000 m³/day
153 plants
Agriculture
146,000 m³/day
100 plants
Energy consumption for water desalination:
1Kg fuel/ m³ of desalinated water.
- For 522,000 m³/day
- Import 150,000 Ton fuel /year.

13. DEMAND MANAGEMENT: Electric cars
30% of oil consumed in the internal
market goes to the road transport
sector.
Peak shaving: More than 1 million vehicles could charge at valley hours
of the electric demand curve

14. ENERGY STORAGE

15. HYDROGEN: TRANSPORT FUEL
H2O
4,5 kWh/m³
0,5 kWh/m³
H2
20 bar
350 bar
H2 vector
energético

16. HYDROGENE
1 atm
0 ºC
89.9 g de H
2
= 3 kWh
Therma l energy
350 bar
89.9 g de H2
2.9 litros
1.5 kWh
Electricity
1.5 kWh
Heat
Fuel cells
η = 50 %
16

17. HYDROGEN: Most relevant RES – H2 projects
RES2H2
HYDROBUS
H2 energy vector
Practical experiences allowing ITC to
progress on the H2 technologies learning
curve
HYDROHYBRID
H2 automotive fuel
With 1.025 MW of wind-power (PECAN:
target 2015), and by using energy
surpluses from valley time, H2 could be
produced to feed 600 urban buses.

18. Maximizing RES Penetration in Insular Grids: other projects
Several Storage Projects ongoing, promoted by the utility (ENDESA) and the
TSO (Red Eléctrica de España): NaS, ZnBr, Supercaps, Flywheels
Pumped Storage
(Peak Shaving)
4 Plants planned: Gran Canaria, Tenerife, La
Palma, La Gomera

19. Case Study: El Hierro Island
Current Situation
Electricity consumption 44.87 GWh
9 Diesel installed in Llanos Blancos
Power Station.

21. WIND – HYDRO Power station (only wind operation)
EL HIERRO WIND HYDRO POWER STATION

22. EL HIERRO WIND-PUMPED-HYDRO SYSTEM
Area
278 km2
Height
1.501 m.
Population
Electricity Plant (Diesel)
nominal power
10.890 inhab.
13,3 MW
Peak demand
7 MW
Wind Farm
11,5 MW
Hydroelectric Substation
11,3 MW
Pumping Station
Energía total:
44,87 GWh
Wind Energy:
Hydro:
Diesel:
27 GWh
6,87 GWh
11 GWh
6 MW
Upper Reservoir
556.000 m3
Lower Reservoir
150.000 m3
New Diesel systems
RES penetration
0
80%

23. Upper reservoir
Penstock
Lower reservoir

24. Wind Farm

25. Pumps and hydro power station

26. Pumps and hydro power station

27. Wind-Hydro Power Station
The systems avoids:
VOC
SO2
47 Tm
742 Tm
CO2
130118 Tm
Fuel-Oil
41,257 Tm
NOx
2,697 Tm
The system avoids the equivalent of
20 oil tankers of 2,000 Tn each (26
are currently necessary to meet the
demand)
BBC:
http://news.bbc.co.uk/2/hi/europe/7951286.stm
EL HIERRO WIND HYDRO POWER STATION

28. Wind – Pumped Hydro Power Station
A bankable project
POSITIVE EXTERNALITIES
• Emission reductions
• Local job creation
• Energy independence
• Improve tourist image
• etc,
They are the justifications for the financial support of
Spain’s IDAE to the project, through a capital grant of 35
M€ (50 % of investment cost).
This public grant guaranties a reasonable PAYBACK of 11 years, and a IRR of
7.5 % for the private investor. Other instruments, such special tariff schemes is
being studied to raise IRR for the private investors to 8 %.
Without public support the project
would not had been possible.

29. ISLE-PACT
INSTITUTO TECNOLÓGICO
DE CANARIAS

30. ISLE-PACT Goals
• Achieve an overall objective of more than
20% CO2 emissions reduction by 2020.
• Demonstrate islands’ political commitment to
EU sustainable energy objectives by signing
a BINDING DECLARATION, the Pact of
Islands.
• Develop Island Sustainable Energy Action Plans (ISEAPs).
• Assess environmental and socio-economic impact of projects
• Produce a pipeline of priority bankable projects and the means to
finance them
+
=
Reductions
30

31. ISLE-PACT
•
62 Island authorities have signed the Pact of Islands
• All 7 Island Authorities of the Canary Islands
• The regions of Western Isles, Gotland, Hiiumaa,
Saaremaa, Öland and Crete
 The autonomous governments (regions) of Sardinia, Sicily, Azores
and Madeira
 18 Greek island municipalities in the Aegean
 13 Cyprus communities
 5 Malta local councils
 Samsø from Denmark
More islands are in the process of joining
60 Island SEAPS have been preparation
9 ISEAPs have been formally adopted by island authorities
92 projects have been submitted – 54 have been retained
31

32. Needed EC support for overcoming existing barriers to
maximum penetration of RES in European Islands
Existing barriers to RES include technical, regulatory/administrative,
marketing, but European support should focuss in existing financial
barries to private investment in RES projects
• High cost of the technologies
• High upfront payment and relative long
payback periods
• High financing costs
The EC could contribute to RES projects in European
island regions though
• Favourable loans
• Capital subsidies
• Tariff support schemes

33. BANKABLE PROJECTS
Identify and analyse potential Renewable Energies, Energy Efficiency and
Sustainable Transport feasible projects, to foster private investment with
public support (public-private partnership)
• Identification of Projects
A preliminary list of 92 identified projects has been compiled
for the 11 participating European island regions
• Prioritisation of key projects to achieve targets
A second list of 54 projects chosen for bankability analysis
Reductions
• Pre-feasibility studies & screening for bankability
Analysis of the projects to estimate their profitability in terms of financial
parameters (PAYBACK, NPV and IRR)
•
Positive externalities identified and valued for each proposed project
• Assessment for public supports, through possible capital grants needed to
assure a minimum reasonable profitability for private investors in each project
proposal

34. ALL PARTNERS – Identification of projects
* Olands
** Saaremaa
*** Hiumaa
Number of
analysed
projects
3
3
2
7
11
7
6
6
3
2
2
54
0,1
IRR
Number of
Partners
Identified
Projects
Co - WESTERN ISLES
3
P1 –GOTLAND
3 + 3*
P2 - MADEIRA
5
P3 – CANARY ISLANDS
7
P5 – GREEK ISLANDS
24
P6- CRETE
22
P7 - SARDINIA
6
P8 - MALTA
6
P9 - CYPRUS
6
P10 - SAMSØ.
4
P11 - AZORES
4
TOTAL
92
0,09
0,08
0,07
5,8 %
0,06
Inf 6 %
Inf 5 %
0,05
Inf 4 %
0,04
Inf 3 %
Inf 2 %
0,03
Inf 1 %
0,02
0,01
2,000 x 10 7
2,200 x 10 7
2,400 x 10 7
2,600 x 10 7
2,800 x 10 7
Investment
23,800,000 €

35. Take a week to change tomorrow
BANKABILITY INDEX
This index is an indicator that expresses the percentage
of public support that each project needs to achieve
bankability (produce a positive return on investment for
the private investor).
This Bankability indicator has been defined from
0 to 10 in order to provide a parameter that
allows creating a scale of “dependence on public
funding” among different project.
Bankability indicator=0 : project needing less
that 10 % (in terms of investment cost) of public
subsidies.
Bankability indicator=10 : project investment
completely financed with public subsidies.
NEEDED
PUBLIC
SUPPORT
0% - 10%
11% - 20%
21% - 30%
31% - 40%
41% - 50%
51% - 60%
61% - 70%
71% - 80%
81% - 90%
91% - 99%
100%
BANKABILITY
INDEX
0
1
2
3
4
5
6
7
8
9
10
EUROPEAN
COMMISSION

36. Take week to change tomorrow
RESULTS OF aBANKABILITY ANALYSIS
BANKABILITY
25%
20%
Projects
BANKABILITY
No. of
INDEX
PROJECTS
00*
6
13%
0
8
13%
1
11 20%
2
9
17%
3
6
11%
4
5
9%
5
3
6%
6
3
6%
8
1
2%
9
2
4%
TOTAL
54 100%
15%
10%
5%
0%
* Bankable by themselves
without any need of public
support
00
0
1
2
3
4
5
6
8
9
Bankability Index
EUROPEAN
COMMISSION

37. Minigrid for La Graciosa
658 permanent residents
342 houses
Objectives
Minimizing the needs for fossil fuels to satisfy the electricity demands from
households, productive activities and public services, by maximizing the
penetration of RES.
Electrric Loads
Currently there is a submarine cable connection with power capacity of
1,030 kW, and a yearly electric consumption of 3.484.914 kWh.
Minimum power
204,08 kW
Maximum power
668,00 kW

38. Take a week to change tomorrow
EUROPEAN
COMMISSION

39. Take week Graciosa
Minigrid fora La to change tomorrow
The microgrid will combine photovoltaic,
wind and diesel systems to supply, in a
stand alone mode, the electrical needs of
the island of La Graciosa.
Control and power
conditioning unit
Energy storage: batteries
Batteries
Photovoltaic
913 kWp
1.551.250 kWh/yr
Wind
50 kW
65.000 kWh/yr
Diesel
500 kW
131.400 kWh/yr
Yearly product.
1.667.550 kWh/yr
Total cost
7.062.000 €
Public support
IRR (Inc.Public suport)
2.547.329, €
12,4%
1.747.650 kWh/yr
Electric demand
Loads
Excess
80.100 kWh/yr
• 36 % Public support
• Bankability index: 3
EUROPEAN
COMMISSION

40. Take a week to change tomorrow
Punta Jandía Wind Diesel System, Fuerteventura Island
Bankability Analysis on the overhaul of an
existing singular stand-alone RES system
EUROPEAN
COMMISSION

41. CONCLUSIONS
Most RES projects involve technologies that lack the competitive
maturity of most fossil fuel based technologies. To attract private
investors regional, national and European public support are
needed.
Public benefit, in terms of positive externalities, should be
the bases for needed public subventions (grants, feed in
tariff, etc), to guarantee a minimum acceptable return on
investment for private investors.
An effective strategy will need further commitment from the
EC to financially support those identified projects in the
fields of RES and energy efficiency.
Initiatives such as PACT of ISLANDS are welcome as a first step
to reinforce the strong Public-Private partnership needed to
promote RES and energy efficiency in European Islands.

42. Thank you for your
attention