RESTOR-Hydro…

… seeks support of BNPPF

A considerable amount of unrealized potential for economically feasible and environmentally sustainable small and micro-scale hydropower (SHP) generation exists in the thousands of historic water wheel/mill/weir sites in the EU. This project will identify the most relevant sites suitable for refurbishment in each of the EU member states and develop a model for regional cooperatives with a community shares ownership driven business plan with profit from the site available for further development of the area.

Addressing the need to reach the European goals of 20% of electricity from renewables by 2020

Who are we ?

• The European Small Hydropower Association (ESHA) is a non-profit International Association representing the sector of small hydropower. The association was founded in 1989 as an initiative of the European Commission. ESHA is a founding member of EREC (European Renewable Energy Council), which groups together all main European renewable energy industry and research associations. Since March 2000, ESHA has shared its headquarters with other EREC members in the Renewable Energy House, in Brussels.

• ESHA is involved in a number of international projects to promote renewable energy sources within the European Union and worldwide: Hydroaction, CH2OICE, RURAL-RES, SHAPES, SHERPA, RESTIMAC, TaW, TNSHP, SPLASH, RES in the EU & CC, SHYCA, SYNERGY

• www.esha.be

• NettoWatt New Belgian entity committed to making a real change and establishing a viable economic model for local renewable energy actions:• Patrick : Environmental Engineer,

MBA, from a Farm in California fed by micro hydro

• Cathy : IT Engineer, MBA, Social Entrepreneur, obsessed by unexploited potential

• www.nettowatt.be

Concept

Dreaming or a Real Opportunity ?• MicroHydro Technology

– Proven, Off the shelves, Robust– Ecologically Friendly– Relatively Cheap, Low maintenance effort

• Cooperative for Green Energy– Very successful in Belgium and UK– Empower individuals at the regional level– A responsible investment opportunity– A support center for Permitting, Funding, and Exploiting

• Viability– There is no lack of money, there is a lack of good bankable projects:

Structural Funds, Green Certificates (new quota until 2020)– PB between 6 and 12 years– Similar initiatives in Slovenia, Wales, Spain, …

• Hydro Potential in Belgium– 1500+ old watermills identified

“One of the biggest challenges … is to prepare integrated packages of sustainable energy projects which are big enough to be considered ‘bankable’ by financing institutions and/or suitable for grant funding by EU financing facilities such as the cohesion or structural funds.” IEE Call CIP-IEE-2011

IEE Call for Proposal in a Nutshell• IEE in a Nutshell :

– €67 million € from 2011-13– contribute to secure, sustainable and

competitively priced energy for Europe, by providing for action:• to foster energy efficiency and the rational

use of energy resources• to promote new and renewable energy

sources and to support energy diversification

• to promote energy efficiency and the use of new and renewable energy sources in transport

• Timing:– Proposal : Jan 2011– Proposal Submission : 12 May 2011– End of Evaluation, Selection : Nov. 2011– End of Contract Negociation : Jan/Feb 2012– Projects Kick Off : Jan/Feb 2012

• Funding areas : Renewable energy sources (ALTENER) – 16 M€• promoting new and renewable energy sources for

centralised and decentralised production of electricity, and thus supporting the diversification of energy sources

• integrating new and renewable energy sources into the local environment and the energy systems

• supporting the preparation and application of legislative measures.

• New in 2011 :• Support to local and regional authorities, in

particular for mobilising actors and local investments in energy efficiency and renewable energy

• Example : 22 projecs funded by IEE 2009• Our project is completely aligned with IEE Objectives • Strong encouraging feedback from EU Program Administrators

RESTOR Hydro Project

• Increase public acceptance by promoting benign technology through ambitious communication program• Address permitting, technological, and funding barriers through providing pre-arranged templates, etc…• Engage local participation, ownership, and guarantee self-sustainability through the Cooperative Model• Twinning leveraged by using Structural Funds and conventional financing as well as cooperatives

Why BNPPFortis?• Reinforce BNPPF image as an engaged actor in both

local and concrete projects regarding RSE, and in a long term vision of a greener world

• A couple of amazing Intranet Articles and great internal ‘story’

• Within Group we’ve a great European-wide presence• An opportunity to position BNPPF as a privileged

partner and leader for microhydro projects• (with approvals) Publicity, logo on Project(s), mention

in the press/media, link from our website, etc…BNP Paribas is taking decisive actions to participate in the global reduction of the GHG

emissions by taking a proactive approach to climate change with the signing of the Climate Principles. BNP Paribas has joined a group of leading financial institutions who

are committed to play a proactive part in the fight against climate change in their capacity as advisors, lenders, investors and insurers.

How could BNPPF be involved?• Explore/Document with us available bank loans for

microhydro projects and making projects ‘bankable’• Propose an ‘energy efficient loan’ (an existing one or a

tailored one) to co-fund Pilot(s) in Belgium, France, etc. • Train ‘Energy Efficient’ Staff to micro hydro• Tailor ‘Energy Efficient’ loans to small hydro and

publicity/promotion (flyer, internet, etc…)• Co-Fund part of our project (IEE funds up to 75% of

eligible costs) -> a pilot, communication campaign, …• Act as an Advisor and be a member of Advisory Board• Other ideas ?

A Letter Of Support would describe your support of the concepts of promoting ‘bankable’ renewable energy projects to meet the European 2020 goals and be

attached to the IEE Submission. This letter would be as binding as the specificity of the terms used in it (from ‘is interested in’ to ‘will contribute to’)

Thoughts ?

• Questions?• Concerns?• Un-addressed Potential?• Blocking Factors?

Nismes Belgium: What these projects might look like …

Belgium Restored Site: Sint-Truiden

Belgium Restored Site: Rotselaer

Knocking down implementation barriers COMMUNITY SHARES OWNED green microhydro

SMALL & MICRO HYDRO’S CHALLENGES Resistance to new sites and decreasing public

acceptance of hydro Considered environmentally ‘unfriendly’ and not

part of ‘green’ solutions European Water Directive &

difficult in permitting and costly regulations on operations

Return on investment perceived as too low for small and micro sites

kpatrickwheeler@nettowatt.be <> www.netowatt.be

ADDITIONAL BENEFITS Hydro potential viewed as a community asset is

to be developed and used, not wasted Puts hydro back on the ‘map’ of green solutions Market driven approach with exponential initial

speed of potential development Encourages thinking of hydro differently Benefits for developing countries and

rural electrification

WHAT WE PROPOSE Publish regional studies of potential Regional Environmental Assessment and

Permitting Step-by-Step guide with templates Work with agencies to pre-approve ‘green’ hydro Cooperative legal framework , business plans and

sample shares tenders Pre-arranged partial conventional financing Engaging public, municipalities & media

DIRECT TANGIBLE OUTCOME Increases local investment and

regional entrepreneurs Encourages a dynamic market of public and

private partnerships Cooperative local ownership reduces resistance

to new sites and benefits regional economies

Significant green hydropower generation

Enable restoration of historic water wheel sites to generate hydroelectric power to with local community buy-in, investment and ownership to produce decentralized green energy while preserving, aesthetics,

historical elements and improving stream quality…

Enercoop (FR)

• Christian Peyres est producteur et sociétaire d'Enercoop depuis 2006. Il produit de l'électricité grâce à son installation hydraulique au fil de l'eau d'une puissance de 235 kW.

• Ville : St Laurent De Neste (65)• Mon objet fétiche : Mon appareil photo numérique

pour figer les moments que je ne veux pas oublier.• Mon rêve : Être autonome énergétiquement. C'est

le moyen de produire et consommer uniquement ce qui est nécessaire.

2.700 membersActif : 1.778.117€TurnOver : 2.712.104Profit : 2.453€

• Actif : 33 M€• TurnOver : 16 M€• Profit : 1,2 M€• 31.000 members• 6 months waiting list to become client

Some Figures

Energy Production / Consummation / Costs• More than 1500 old watermills identified in Belgium• Hydropower systems last 20 to 30 years – longer than most other kinds of generating systems• As a rule, the “water to wire” efficiency factor for small systems (for example, up to 10 kW) could

be taken as approximately 50 percent• A turbine generator set to operate at a head of 10 m with flow of 0.3 m3/s will deliver

approximately 15 kW of electricity• For a typical residential home in a town or city, the total energy requirement is approximately 3,5

MWh per year• A peak power output of approximately 14.5kW, with a capacity factor of 80% leads to total annual

energy capture of approximately 103 MWh.• For a typical Output of 10 kW, the Capex is 2000 € / kW (3000 €/kW for <5 kW, 1000€ for 50 kW)EU Targets• Share of energy from renewable sources in gross final consumption of energy in 2005 : 2.20%• Target of energy from renewable sources in gross final consumption of energy in 2020 : 13%• Expected amount of energy from renewable sources corresponding to the 2020 target : 6 TWhGreen Certificates• Since the launch of green certificate system, the average price of the certificate typically oscillates

around 90 €. The redemption fee (65€) is guaranteed for 15 years.

Quick Maths for BelgiumPercentage of the time wheel is turning 90,00 %# Hours 8760,00 /yearconsumption of a houshold 3,50 MWh/yearAverage Generating Power 10,00 kW/siteEfficiency Factor 60,00 %

Energy Generated by site 47,30MWh/year/site

# households consumption equivalent 13,52  Investment costs per kW 2000,00 €Investment Costs 20000,00 €/siteMaintenance Costs 500,00 €/year/siteGreen Certificates price 90,00 €/MWhGrey revenue 25,00 €/MWhRevenues 5439,96 €/year/site

Costs of Money 8,00 %Annuity 4939,96 €/yearNPV 41749,50 €PayBack Period 4,05 years

Average Consumption of a household 3500,00 kW / year# Sites identified 1734,00  % Sites with potential 10,00 %# Sites with potential 173,40  Total Energy Generated 8202,51 MWh/year# households consumption 2343,58  EU 2020 targets for Belgium 6,00 TWh% EU Targets (in 9 years) 1,23%  

Green Certificates

• EDORA accueille avec soulagement l’annonce de la fixation par le gouvernement des objectifs de production d’électricité verte à l’horizon 2020. Attendue depuis plus d’un an par le secteur, la fixation des quotas de certificats verts permettra de rétablir la confiance du secteur et de relancer les investissements dans de nouveaux moyens de production d’électricité renouvelable, véritable moteur pour l’atteinte de l’objectif renouvelable 2020

Myths & Facts on Micro Hydro• Common misconception: That waterwheels and other low head devices are inefficient and

unreliable for generating electrical power. This is not true using modern technology and control systems on suitable sites. Costs have fallen to (€1 - 6K/kW)

• Fact No. 1. A combination of over-regulation combined with cheap fossil fuel power sources in the 1960-80’s killed off many small hydro plants and led to the run down of many Mill sites

• Fact No. 2. There used to be over 30,000 working mills in the UK (1850). The number of working mills is now less than 400 and whilst many are now visitor attractions, less than 100 mill sites are generating clean electrical power. Largest EP o/shot wheel at Aberdulais, 25kW

• Fact no. 3. Many existing low head sites can be used to generate clean electrical power cost effectively (PB << solar or micro-wind <6y-12y)

• Fact No. 4. Some reaction machines are very fish friendly and have negligible to positive environmental impact (multiple studies)

• Fact No. 5. Improvements in technology combined with higher energy costs, climate change issues and co-operation by all stakeholders could bring about a renaissance of low head hydro

• Fact No. 6. Educating people of the benefits and winning ‘hearts and minds’ is key to the success for a micro-hydro revolution to occur

• Fact No. 7. Raising awareness of micro hydro benefits needs to be better communicated by developers with councils, local authorities, government and the environment agencies to ensure that the process becomes simpler, more proportional & fit for purpose

• Fact No.8. Too much emphasis has gone on micro wind and solar PV without understanding the benefits hydro provides (higher efficiencies, LFs and therefore PB’s with low environmental impacts)

• Fact No.9. Although waterwheels are large they can produce reliable power at high efficiencies (WtW efficiencies up to 80% and LF=0.9) for o/shot, although 65% and 0.7 are more common for LH