TOWARDS A ZERO-CARBON MICROCOSM ECONOMY: A CASE STUDY OF RENEWABLE ENERGY AND ENERGY EFFICIENCY INITIATIVES ON SMALL RURAL ISLANDS OFF THE SCOTTISH AND IRISH COASTS WITH THE AIM OF

TOWARDS A ZERO-CARBON MICROCOSM ECONOMY:

A CASE STUDY OF RENEWABLE ENERGY AND ENERGY EFFICIENCY

INITIATIVES ON SMALL RURAL ISLANDS OFF THE SCOTTISH AND IRISH

COASTS WITH THE AIM OF IDENTIFYING THE INITIATIVES WITH THE

GREATEST POTENTIAL FOR REPLICATION ON SIMILAR ISLAND

COMMUNITIES

by:

BRIAN MCGONAGLE

AUGUST 2012

Submitted as part assessment for the degree of

Master of Science (MSc)

in

Climate Change: Impacts and Mitigation

School of Life Sciences

Heriot-Watt University, Edinburgh

DECLARATION

I, Brian McGonagle, declare that this dissertation submitted to the School of Life Science at

Heriot-Watt University, Edinburgh as part of my MSc Climate Change: Impacts and

Mitigation studies has been submitted as an original piece of research work. All research

contained within is entirely my own work with any external sources of information

acknowledged and referenced appropriately.

Signed: _______________

Brian McGonagle

Date: 24th

August 2012

TABLE OF CONTENTS

Contents: Page No.

List of Abbreviations pg i

List of Figures pg iii

List of Tables pg iv

Abstract pg v

Chapter 1 Introduction and Literature Review pg 1

1.1 Introduction pg 2

1.2 Climate Change – What is it? pg 4

1.2.1 Greenhouse Gases pg 4

1.2.2 The Climate Change Debate pg 5

1.3 The global effects of climate change pg 7

1.4 Efforts to tackle climate change pg 8

1.5 The move towards a zero-carbon economy pg 11

1.6 Challenges facing rural Island communities and their role in low-carbon

sustainable development pg 12

Chapter 2 Scope and Methodology pg 15

2.1 Scope of the review pg 16

2.1.1 Renewable energy and energy efficiency initiatives on rural Irish and

Scottish Islands pg 16

2.1.2 Financial support measures available for renewable energy and energy

efficiency initiatives pg 16

2.1.3 A “blueprint” for sustainable development on island communities pg 17

2.2 Methodology pg 17

2.2.1 Criteria for island selection pg 17

2.2.2 Secondary Information pg 17

2.2.3 Primary Information pg 18

2.3 Possible limitations of the study pg 19

2.3.1 The reviewed islands pg 19

2.3.2 The level of detail pg 19

2.3.3 Quality of information pg 19

2.3.4 Comparative difficulties pg 20

Chapter 3 The Move Towards a Low-Carbon Economy on Small Rural

Islands pg 21

3.1 Arainn Mhor Island (Republic of Ireland) pg 23

3.1.1 General information pg 23

3.1.2 Grid connection pg 23

3.1.3 Energy consumption and costs pg 24

3.1.4 Renewable energy pg 24

3.1.5 Energy efficiency pg 27

3.1.6 Finance pg 27

3.2 Isle of Eigg (Scotland) pg 29






3.2.6 Finance pg 32

3.3 Gigha (Scotland) pg 34






3.3.6 Finance pg 38

3.4 Westray (Scotland) pg 40





3.4.4.1 Westray Development Trust pg 43

3.4.4.2 Industry pg 44

3.4.4.3 Tidal Energy Leasing Round pg 45


3.4.5.1 Westray Fuel Poverty Project pg 46

3.4.5.2 Energy Action Westray pg 47

3.4.6 Finance pg 48

3.5 The Aran Islands (Ireland) pg 49





3.5.4.1 Inis Oir pg 50

3.5.4.2 Inis Meain pg 51

3.5.5 Transport pg 52

3.5.6 Energy Efficiency pg 53

3.5.7 Finance pg 53

Chapter 4 Financial Assistance and Fiscal Incentives for Renewable Energy

and Energy Efficiency Measures pg 55

4.1 Provisions for Renewable Energy Generation in Irish Policy pg 56

4.2 Ireland - Financial assistance and fiscal measures for renewable energy and

energy efficiency initiatives pg 57

4.2.1 Feed-In-Tariff pg 57

4.2.2 Tax Relief pg 58

4.2.3 Accelerated Capital Allowance Scheme pg 58

4.2.4 Rural Development Programme Fund pg 59

4.2.5 Grant Schemes pg 59

4.2.6 Bioenergy Establishment Scheme pg 59

4.2.7 Community Based Organisations (CBOs) pg 59

4.2.8 Carbon Tax pg 60

4.3 Scotland - Financial assistance and fiscal measures for renewable energy and

energy efficiency initiatives pg 62

4.3.1 Renewable Heat Energy Payment pg 62

4.3.2 Home Renewable Loan scheme for renewable heating systems only pg 62

4.3.3 Feed-In-Tariff Scheme (FITs) pg 63

4.3.4 Rates relief for renewable energy generators pg 64

4.3.5 CARES Loan Fund pg 65

4.3.6 CARES Rural Business Loans pg 65

4.3.7 Community Renewable Energy Support Scheme pg 66

4.3.8 Carbon price-floor pg 66

4.3.9 Renewable Obligation Certificates (ROCs) pg 67

4.4 Funding at EU level pg 67

4.4.1 The European Energy Efficiency Fund (EEEF) pg 67

4.4.2 The Intelligent Energy Europe Programme (IEE) 2007-2013 pg 68

4.4.3 EU Structural and Cohesion Funding 2007-2013 pg 68

4.4.3.1 INTERREG IVC Programme pg 69

4.4.4 Northern Periphery Fund 2007-2013 pg 69

4.4.5 LIFE + 2007 -2013 pg 71

4.4.6 European Agricultural Fund for Rural Development (EAFRD)

2007-2013 pg 71

Chapter 5 Part I: Low-Carbon development strategies on island communities:

Environmental, Economic and Social Benefits pg 72

5.1 The success of renewable energy and energy efficiency measures on

the islands pg 73

5.2 Environmental Benefits pg 74

5.2.1 Reducing the carbon footprint of island communities pg 74

5.2.1.1 Potential for replication pg 75

5.2.2 Electric Vehicles (EVs) on the Aran Islands pg 76


5.3 Economic and Employment benefits pg 77

5.3.1 Economic benefits from community renewables pg 77


5.3.2 Additional economic benefits from a low-carbon development

strategy pg 80

5.4 Social benefits pg 82

Part II : Summary table of successful carbon reducing initiatives pg 85

5.5 Summary pg 95

Appendix A Questionnaire used in primary research phase of island study pg 96

Appendix B Case study: Samsø – Renewable Energy Island pg 104

Appendix C Examples of Life+ projects in Ireland pg 108

Appendix D Contact details for relevant organisations, sources of funding and island

development committees pg 110

Appendix E Irish Government Programme for Government – Green jobs pg 115

Appendix F Arainn Mhor sustainable development goals pg 116

Appendix G Elephant Grass on Bere Island pg 117

Appendix H Examples of Community Renewable Projects in Ireland pg 118

ACKNOWLEDGEMENTS

I would firstly like to record my sincerest gratitude to my supervisor, Professor James Mair,

for his guidance and advice at all stages of the dissertation process and throughout the rest of

my MSc studies.

I am greatly indebted to the representatives from the island communities that form the focus

of this dissertation. In particular I wish to record my gratitude to the following people:

Ian Leaver, Isle of Eigg Heritage Trust

Lukas Lehman, Isle of Gigha Heritage Trust

Noirin Ni Mhaoldomhnaigh, Arainn Mhor Cooperative

Dara Molloy, Inis Mor Energy Committee

Colin Risbridger, Westray, Orkney Renewable Energy Forum

A wide range of information was also gathered from other island communities and relevant

stakeholders and organisations. While not explicitly detailed in the research, this information

was an invaluable part of the learning process. I would like to acknowledge in particular the

advice and help of Micheal Cecil (Rathlin Island), Dr.Sandy Kerr (Heriot-Watt University,

Orkney Campus), Maggie Fyffe and John Booth (Eigg Heritage Trust and Eigg Electric).

I would also wish to record my sincerest gratitude to my employers at the Department of

Public Expenditure and Reform, and Georgina Hughes-Elders in particular, for their support

and understanding during the dissertation process.

Finally I wish to express my thanks to my girlfriend, Emer, and my family for their patience

and support during my research studies.

LIST OF ABBREVIATIONS

AfL Agreements for Lease

ANM Active Network Management

BER Building Energy Rating

BMW Border Midlands and Western

BTS Below Tolerable Standard

CAP Common Agricultural Policy

CARES Community and Renewable Energy Scheme

CBOs Community Based Organisations

CER Commission for Energy Regulation

CFL Compact Fluorescent Lightbulbs

CHP Combined Heat and Power

CH4 Methane

COP16 Conference of the Parties

CRESP Community Renewable Energy Support Programme

DCENR Department of Communications Energy and Natural Resources

EAFRD European Agricultural Fund for Rural Development

EEEF European Energy Efficiency Fund

EIA Environmental Impact Assessment

ERDF European Regional Development Fund

ESB Electricity Supply Board

ESCOs Energy Service Companies

ESF European Social Fund

ESRL Earth System Research Laboratory

EU European Union

EV Electric Vehicle

FIT Feed-in Tariff

GDP Gross Domestic Product

GHGs Greenhouse Gases

HES Home Energy Saving

HIE Highlands and Islands Enterpise

IEA International Energy Agency

IEE Intelligent Energy Europe

IPCC Intergovernmental Panel on Climate Change

kV Kilovolt

kW Kilowatt

kWh Kilowatt Hours

LEADER Liason Entre Actions pour le Development D’Economice Rurale

MW Megawatt

NHER National Home Energy Rating System

NOx Nitrogen Oxide

OECD Organisation for Economic Co-Operation and Development

PPM Parts Per Million

PV Photovoltaic

REFIT Renewable Energy Feed-in-tariff

ROC Renewable Obligation Certificate

SAP Standard Assessment Procedure

SEAI Sustainable Energy Authority Ireland

SEM Single Electric Market

SSER Scottish and Southern Energy Renewables

UNFCC United Nations Framework Convention on Climate Change

WDT Westray Development Trust

WRE Westray Renewable Energy

LIST OF FIGURES

Figure 1 Historic atmospheric CO2 levels at Mauna Loa Observatory, Hawaii

Figure 2 The “hockey-stick” phenomenon showing historic temperature records for the

Northern Hemisphere

Figure 3a Ireland’s GHG abatement cost-curve – Reference scenario 2030

Figure 3b Ireland’s GHG abatement cost-curve – High oil-price ($120 per barrel)

scenario 2030

Figure 4 The technological mix required to meet EIA 2050 target

Figure 5 Decline in Irish large-island population

Figure 6 Map of islands included in study

Figure 7 Map of current grid network in Orkney Islands

Figure 8a Breakdown of household energy survey using SAP ratings

Figure 8b Breakdown of household energy survey using NHER ratings

Figure 9 Map of CBO network in Ireland

Figure 10 Northern Periphery Programme countries

LIST OF TABLES

Table 1 Fuel consumption by type, quantity used and cost on Arainn Mhor

Table 2 Energy contribution to overall Eigg supply by source

Table 3 Renewable Energy Initiatives on Eigg

Table 4 Sources of finance for Eigg Electrification and associated initiatives

Table 5 Energy costs (2010) by fuel type for properties owned by Gigha Heritage

Trust

Table 6 Funding by type, source and amount for “Dancing Ladies” development

Table 7 Energy produced (MWh) by Westray turbine in first 12-months of operation

Table 8 Ireland REFIT scheme – Price (€) per MWh

Table 9 Levels of Renewable Heat Energy Payment available

Table 10 Feed-In-Tariff Levels (FITs) as of April 2012

ABSTRACT

Climate change and the global financial crisis are arguably the greatest challenges facing

humanity today. Across the world, communities are feeling the effects of a change in climatic

conditions that is being accredited to increased anthropogenic emissions since the Industrial

Revolution. Those most at risk to the effects of climate change are developing countries,

many of whom in addition to this issue have to face multiple other stresses of famine, poverty

and war. In other parts of the world, it is socio-economic challenges that are crippling once

thriving communities. This is particularly true in the case of small rural island communities

off the Irish and Scottish coasts where traditional industries have disappeared bringing with

them large segments of island populations who are being forced to emigrate due to the lack of

economic opportunities. This dissertation identifies the measures taking place in small island

communities that, through the pursuit of low-carbon development, can attempt to address

both the issue of climate change mitigation and the dwindling socio-economic opportunities

on rural island communities.

Through extensive qualitative research, the study develops a detailed description of the

characteristics of traditional energy supply, the renewable energy and energy efficiency

measures in place, and the financial support structures available for such initiatives in five

rural island communities off the Irish and Scottish coasts. The dissertation finds that many of

the low-carbon initiatives taking place have significant potential for widespread replication.

The biggest barrier to this is a lack of education and awareness amongst island communities

of the potential benefits of pursuing a low-carbon development strategy and of the support

structures that are in place to assist in the move towards green growth. Governments at both

national and regional level must supplement the financial support they offer to communities

for renewable energy generation and energy efficiency measures with adequate investment in

the education of communities of the benefits of pursing a green growth strategy. By investing

in education and maintaining and increasing support of low-carbon initiatives, these island

communities can serve to act as “test-tubes” for low-carbon development strategies. By

honing and refining the strategies that have been successful at microcosm level, governments

can hopefully implement similar policies at regional, national and international level in the

future and set the world on a development path with much lower carbon emissions.

CHAPTER ONE

INTRODUCTION AND LITERATURE

REVIEW

1.1 Introduction

For the past thirty years the debate over climate change and the role of mankind in its

existence has continually ebbed and flowed between the extremes of climate-change deniers

and sceptics to the doomsday scenario predicted by some enthusiasts. In the past decade, a

large body of scientific evidence has come to light that appears to suggest that anthropogenic

greenhouse gas emissions (GHGs) are causing changes to the climate out-with natural

climatic cycles (Stern, 2006, p.(xiii)).

The impact of this changing climate on the global environment, economy and everyday life is

a defining issue of our era (OECD, 2008, p.3). Each day of inaction only serves to make its

consequences more irreversible. Action is required now. Identifying the optimal strategy to

best help mitigate the impacts of, and adaptation to, climate change is extremely difficult.

Climate change is a problem with unique characteristics. It is global in its causes and

consequences and requires complex interactions and collaborative action across all sectors

and all nations to drive an effective, efficient and equitable response on the required scale

(Metz et al., 2001, p.3). Ultimately, a combination of practical solutions, economic tools and

policy action offers the greatest potential for minimising the impacts of climate change.

Through the Kyoto Protocol, the UNFCCC has brought GHG emissions control to the top

table of global politics. Sadly the political will required for full implementation of the

Protocol has been found wanting in many countries. This economic and policy inaction by

governments at a national and international level has prompted many communities into taking

immediate action of their own to help combat climate change.

Across the world, these communities are embracing cleaner energy and are striving to create

lower-carbon economies. While there are obvious long-term moral reasons for attempting to

halt climate change and reduce the environmental debt burden for future generations,

promoting the development of renewable energy can have immediate and significant effects

on the lives of people today. In some of the poorest parts of the world (i.e. sub-Saharan

Africa) the opportunities offered by solar energy could help such regions emerge from the

abject poverty that they suffer if developed and utilised responsibly (Metz et al., 2001. p.11).

Due to the global nature of climate change and its’ impacts, mitigation does not solely need

to take place in the vulnerable areas of the world that will suffer most. The developed world

is responsible for the majority of the historical emissions in the atmosphere and so these

nations have a responsibility to try and mitigate against the future impacts of climate change

on more vulnerable countries.

This study focuses on the development of renewable energy and energy efficiency schemes in

rural island communities off the Scottish and Irish coasts. Life on many of these islands, their

history and their traditions are on the cusp of extinction as the lack of social and economic

opportunities makes life for inhabitants, particularly young people, extremely difficult.

But while peripherality has been the downfall of these island communities in recent history,

their geographical location and natural characteristics in many cases presents unique access to

abundant and potentially extremely valuable renewable energy resources which, if exploited

appropriately, could reverse population decline and allow these islands to flourish again. By

analysing the initiatives across a range of islands I hope to identify and compile in a table the

initiatives with the greatest potential for replication in similar island communities. These

measures could help island communities strive towards a zero-carbon microcosm economy

that can offer opportunities to revitalise island life and reverse years of population decline

and desertion whilst simultaneously helping to mitigate the effects of climate change for the

world’s most vulnerable people.

1.2 Climate Change – What is it?

Our climate is and always has been changing. These changes are etched in our landscape and

underpin our economic and social history (Burroughs, 2007. P.1). But while the natural

variations in global climate are widely recorded and studied, it is the departure from these

natural variations in the past century that has become the fulcrum of the modern climate

change debate.

1.2.1 Greenhouse Gases

Studies in the field of climate science today focus on the correlation between the rapidly

changing climate and the levels of GHG emissions in the atmosphere which continue to

enhance the greenhouse effect1. CO2 emissions have been monitored at Manua Loa, Hawaii

(Figure 1) and other sites across the world since 1958 (Burroughs, 2007, p.211). When cross-

checked for accuracy and combined with historical ice-core data the records show that CO2

levels have risen from 280ppm2 in the pre-industrial period to 396 ppm in 2012 (ESRL,

2012). Analysis of CO4, NOx and other important GHG concentrations show a similar trend

of significant increases from pre-industrial era through to today (Burroughs, 2007, p.211).

1The greenhouse effect is the trapping of solar radiation within the earth’s atmosphere by a layer of GHGs. This

layer is enhanced by the burning of fossil fuels.

2PPM – parts per million. Standard measurement technique for dilute concentrations of substances

Figure 1 Historic atmospheric CO2 levels at Mauna Loa Observatory, Hawaii

Source: ESRL, 2012

1.2.2 The climate change debate

While the majority of the scientific community accepts that the concentration of GHGs in the

atmosphere since the Industrial Revolution has increased, there is a large body of climate

change sceptics who refuse to acknowledge any correlation between increased atmospheric

GHG emissions and increasing global temperatures. In 2001 however, the IPCC concluded

that there was now a significant bank of evidence to support the theory that most of the global

warming observed over the previous 50 years was attributable to human activities (IPCC,

2001). The relatively sudden increase in global temperatures is most commonly represented

as the “hockey stick” phenomenon, first shown by Mann et al. (1999) (see Figure 2).

The hockey-stick diagram shows relatively stable temperatures from the year 1000 through to

1900. At this juncture there appears to be a distinctly sharp increase in global temperatures.

Many interpret the “hockey stick” representation as definitive evidence of the human

influence on the climate due to the visual correlation between the higher global temperatures

and the increased atmospheric GHG emissions.

As previously alluded to, the phenomenon is not without its critics however and many studies

and papers have been written that disparage Mann’s findings. The foremost critics of this

historical temperature representation, such as von Storch et al. (2005, p.24), emphasise that

accurate and verifiable temperature records have only existed for approximately the past 150

years and that the use of proxy variables such as tree-rings, ice-cores and coral formation

cannot be relied upon as completely accurate measurements of historical temperature.

Figure 2 The “hockey-stick” phenomenon showing historic temperature records for the Northern

Hemisphere

Source: ESRL, 2012

What cannot be denied is that the levels of anthropogenic CO2 emissions since the Industrial

revolution are unprecedented in the history of the world. From this period productivity and

efficiency increased dramatically as production of goods shifted from the home into factories.

As a result of this intensification of production, atmospheric concentrations of GHGs began

to increase dramatically. Since the Industrial Revolution, concentrations of carbon dioxide

have increased by nearly thirty-per cent, concentrations of methane have more than doubled,

and nitrous oxide concentrations have risen by about fifteen per cent (EPA in Martinez, 2005,

p.407). All of these gases are released through the burning of fossil fuels which have been the

primary energy sources used to operate cars and trucks, heat homes and businesses, and run

factories since the industrial revolution.

1.3 The global effects of climate change

While the effects of climate change are felt everywhere, the degree of severity of the impacts

are heavily balanced against the impoverished developing countries whose populations are

already living on or close to the margins of survival (Stern, 2006, p.105).

Sub-Saharan Africa, for example, is one of the world’s most fragile and vulnerable regions to

climate change and variability. The situation here is aggravated by the interaction of

“multiple stresses” of poverty, famine, harsh environmental conditions, dysfunctional

institutions and internal and external conflict occurring at various levels in the region (Boko

et.al, 2007).

Rising sea-levels, advancing desertification and other climate driven changes could drive

millions of people in the developing world to migrate from their homes. The Stern Review

(2006, p.104) emphasises these concerns by highlighting that over one-third of Bangladesh

will be under water with a one-metre sea-level rise. Developing countries dependence on

agriculture is yet another reason why these regions will be the most severely affected by any

climatic variations. 21% of Indian GDP, 39% of Malawian GDP and 61% to 64% of sub-

Saharan African and South-East Asian GDP respectively is reliant on agriculture

(International Labour Office, 2005). The failure of monsoon rains or the arrival of flood

waters can decimate a farmer’s food stock and long-term revenue supply.

1.4 Efforts to tackle climate change

Developing a response to climate change is one of the world’s most pertinent questions at this

current time. Solutions to climate change have to be both proactive and reactive. Regardless

of the measures to be taken, the economic outlay required will be huge. The economic impact

of climate change has already reached astronomical proportions and will only increase in the

future unless fundamental societal changes take place. For example, if the world is to achieve

the 2oc by 2050 target, the amounts of funding needed annually to mitigate and adapt could

range between $600 and $1,500 billion a year (Montes, 2012). It is important that the world is

made aware that the costs involved in developing a response to climate change will be much

less if they are incurred now to undertake proactive as opposed to being spent on reactive

adaptation measures in the future (Montes, 2012).

While there is very little that can be done to change the level of emissions currently in the

atmosphere, the developed world must accept responsibility for its historical actions. By

participating in global measures to help mitigate climate change, and adaptation measures to

help protect those most vulnerable from its effects, we can minimise the future impact of the

changing climate.

Global efforts through the UNFCCC to stimulate sufficient climate finance to aid adaptation

and mitigation has been undermined by the global financial crisis. $100bn per annum by

2020 was pledged by developed countries at COP16 in Copenhagen in 2011 but appears to

have hit a buffer already with many developed countries reneging on their commitments

(UNFCCC, Bonn, 2012). An equitable solution in the form of a global agreement to work

towards the common goal of reducing global emissions through long-term mitigation

measures and minimising the effects of climate change through adaptation measures is

rapidly required.

At individual country level efforts are also being made to raise the awareness of, and develop

optimal responses to, climate change issues. In 2009, Scotland produced its Climate Change

Bill which specified a target to reduce its emissions by 42% by 2020 and 80% by 2050

(Scottish Government, 2009). Ireland’s climate bill is in process of being developed but due

to the need for fiscal consolidation as part of the EU/IMF programme it has somewhat fallen

down the pecking order of Government priorities.

Many countries have developed GHG abatement cost-curves that highlight the most cost-

effective measures that can contribute to the mitigation of climate change. We can see from

Ireland’s curve in Figure 3a and 3b that energy efficiency measures offer the greatest

opportunities and return for climate change mitigation, with onshore wind proving to be the

most cost-effective renewable energy technology.

Figure 3a Ireland’s GHG abatement cost-curve – Reference scenario 2030

Source: SEAI, 2009

Figure 3b Ireland’s GHG abatement cost-curve – High oil-price ($120 per barrel) scenario 2030

Source: SEAI, 2009

1.5 The move to a zero carbon economy

If the efforts to move towards a zero-carbon economy are to be successful countries must be

convinced of the financial benefits of pursuing green-growth. In order to decarbonise

industry, homes, electricity generation and transport systems sufficiently we will need to

“power-down” our current high-carbon living (Zero Carbon Britain, 2010). To do this

demand needs to be reduced to facilitate a move to a supply side free of fossil fuels. The non-

climate related benefits of reduced carbon from an economic and societal transformation need

to be emphasised to garner public support. This regime change grants the opportunity to

reduce the global exposure to depleting fossil fuel resources, allows for the creation of a more

equitable society and could accommodate an economic revolution through the pursuit of

green-growth.

Figure 4 The technological mix required to meet EIA 2050 target

Source: IEA “Blue Map Scenario” (2010)

The IEA’s “Blue Map Scenario” (Figure 4) identifies the technological mix that will be

needed to meet their 50% CO2 emissions reduction target by 2050. While the IEA’s target

may be extreme and unrealistic, it outlines the type of technological requirements and in

particular the role that renewable energy and energy efficiency measures will have to play in

a lower-carbon future.

Various studies have identified the potential of renewables at national, EU and international

level. Jacobson and Delucchi (2009) claim that 100% of the world’s energy needs can be met

by renewable generation by 2030, while the European Wind Energy Technology Platform

(2006) demonstrates that the economically competitive potential of wind generation in

Europe is seven times the projected electrical demand for 2030. The varying figures

published serve to highlight the difficulties in quantifying the precise contribution renewable

energy can make to future energy demands. While they may not agree on precise figures,

they all share the common theme that renewable energy has a hugely significant role to play

in helping us meet future energy demands and help mitigate against future climate change.

1.6 Challenges facing rural Island communities and their role in low-carbon

sustainable development

Small island communities, regardless of their location throughout the world, face many

similar challenges. Issues of isolation, peripherality, reliance on importation of resources,

inadequate levels of market demand and supply to maintain sufficient business and enterprise

activity, etc., are faced by all small island communities to some extent. In the case of Irish

and Scottish islands, the biggest challenge in recent times has been the mass emigration from

island communities due to the absence of economic and social opportunities (see Figure 5).

As outlined in the Arainn Mhor Development Plan (2008), the future of small rural island

communities depends on maintaining a permanent resident population, and perhaps more

importantly a young and vibrant population, on the island.

Figure 5 Decline in Irish large-island population

Source: Arainn Mhor Development Plan (2008)

In recent years some governments have begun to see the potential of looking at islands as

microcosm economies where development strategies can be tested. Kerr (2005, p.504) points

this out when he says that, “due to the clarity of boundaries…and insular characteristics,

islands can provide a very useful laboratory for testing theories of sustainable development.”

One such island which has been implementing innovative sustainable development strategies

for over 15 years is the Danish island of Samsø3. Samsø has been working with renewable

energy since 1997 and the islands’ inhabitants have developed several successful projects and

have established Samsø as an internationally renowned renewable energy island (Pact of

Islands, 2011).

During this time the island’s CO2 emissions have been reduced by 140%. Through the

exportation of renewable energy from wind turbines, CO2 emissions for Samsø’s population

3 Case study of Samso available in Appendix B

are minus 2 tonnes per capita each year. Not content with this Samsø has now set a new goal

to become entirely fossil-free by 2030 (Pact of Islands, 2011).

With the case of Samsø, the precedent is somewhat set for a move to zero-carbon island

economies. Over the coming chapters I will look at the sustainable development efforts being

made on some rural island communities off the Scottish and Irish coasts. I will then provide

details on the sources of finance that are available to these regions and finally outline the

greatest areas of opportunity that these island communities could exploit going forward.

These opportunities could prove to be the catalyst in the regeneration of rural island life while

providing the outside world with a vital test-tube within which they can hone their future

green development strategies.

CHAPTER TWO

SCOPE AND METHODOLOGY

2.1 Scope of the review

2.1.1 Renewable energy and energy efficiency initiatives on rural Irish and Scottish

Islands

The primary focus of this study is to evaluate the various initiatives being implemented in

rural island communities off the Scottish and Irish coasts as they aim to transform their

economies from being energy intensive and import-reliant communities to becoming low or

zero carbon economies with the potential to export their valuable renewable resources.

The review of each island and its initiatives aims to include the following considerations:

The island and its physical characteristics

Energy consumption and the cost of energy on the island

Details of the grid connection or local grid network

Details of the renewable energy and energy efficiency measures taking place on the

island

An outline of the sources and amounts of finance received by the islands to implement

the initiatives.

2.1.2 Financial support measures available for renewable energy and energy efficiency

initiatives

I will also conduct an analysis of the financial support measures that are available for island

communities at national and European level. This will be supplementary to the overall

findings and recommendations of how the islands can try to move to a low-carbon economy.

2.1.3 A “blueprint” for sustainable development on island communities

After completion of the island review I will analyse the most successful projects on the island

communities and the success of other schemes around the world and outline how these

initiatives have the potential to be replicated by similar island communities.

2.2 Methodology

2.2.1 Criteria for island selection:

The focus of this study is on relatively small rural islands who have suffered the most from

dwindling economic opportunities and emigration and so the network of islands selected

range in population from approximately 28 – 1200. Due to the extensive amount of

information gathered during research I had to limit my focus to just five island communities.

These islands all have similar long-term sustainable development plans but are at differing

stages of the process and so they make for interesting comparisons. The islands included in

my study are:

Eigg, Gigha and Westray in Scotland

Arainn Mhor and the Aran Islands in Ireland.

2.2.2 Secondary information:

The first research phase of the study involved the gathering of secondary information from

existing sources on renewable energy and energy efficiency schemes on rural island

communities and the assembling of all relevant information on financial and practical

assistance available to island communities for carbon-reducing schemes. The information

gathered at this stage came from government departments and semi-state agencies, the

European Commission, island community groups and various academic studies. The internet

provided the largest source of material but various publications (books, journal reports, etc.)

available at Heriot-Watt University Library and Trinity College Dublin Library were also

used as sources.

2.2.3 Primary information

While the secondary information provided very important background material, it was

essential for the quality of my study to obtain primary information from the islands

concerned. This task was performed using two methods:

(i) The island-specific information that was required for my study was obtained

by the distribution of a questionnaire4 and conducting of interviews with those

involved in development committees on the participating island communities.

(ii) Using the contact network that had been established during preliminary

research I visited some of the islands to see for myself the initiatives in action,

to compare the similarities and differences between each islands programme

and to gather additional information that may not be easily conveyed via the

questionnaire and interviews.

A second stage of primary research was required when gathering information on the financial

support available from the various sources. This involved direct communication with EU and

domestic government departments who provided details and links to relevant sources of

information.

4 Questionnaire included in Appendix A

2.3 Possible limitations of the study

2.3.1 The reviewed islands

The islands considered for this study were chosen due to their characteristics of relatively low

populations, geographical location on the western seaboards of Ireland and Scotland and their

similar socio-economic characteristics. They cannot however be considered to be exhaustive

or representative of all the islands or renewable energy initiatives in the study region.

2.3.2 The level of detail

There is a variation in the level of information detail presented for some of the islands in this

study. For some of the islands there was a detailed response obtained containing specific

details in response to all of the questions that I had posed, whereas for others there was a

more of a general overview of the island’s development strategy provided. Where detailed

information may not have been provided efforts were made to obtain information from

secondary sources but in some cases this was not possible.

2.3.3 Quality of information

While every effort has been made to ensure the quality and detail of the information used,

there is an awareness that due to the inability to cross-check the data there may be some

errors in the data provided. Where possible, data has been cross-checked and secondary

source data has only been obtained from reputable and verified sources.

2.3.4 Comparative difficulties

Whilst the islands in the study possess many similar features, they are individually unique

with characteristics that cannot be compared. Due to specific geographic characteristics, the

initiatives taking place can differ between the islands i.e. High terrain on Isle of Eigg

accommodates hydro power development. Because of the differences between each island it

is difficult to make a like-for-like comparison.

CHAPTER THREE

THE MOVE TOWARDS A LOW-CARBON

ECONOMY ON SMALL RURAL ISLANDS

Figure 6 Map of Islands included in study

Source: Scribble Maps, 2012.

3.1 Arainn Mhor Island (Republic of Ireland)5

3.1.1 General Information:

Population6: 522

Jurisdiction: County Donegal

Area7: 18.1km

2

Ownership structure: All private landowners

3.1.2 Grid-connection

Arainn Mhor Island is connected to the mainland at Burtonport via a 10kV cable connection.

This connection provides reliable electricity supply to the island at competitive per-unit

prices much cheaper than on islands where diesel generators are relied upon for electricity

generation. Although no plans have been made for an upgrade of the connection to the

mainland, the Arainn Mhor Development Plan 2008-2013 makes explicit reference to the

potential capacity of the island to export renewable energy to the grid via connection to the

new 100kV power-line which will travel along the west coast of county Donegal. It is

acknowledged that the capacity of any proposed renewable energy generation project would

need to be very large in order to economically justify the provision of higher capacity

transmission cables.

5 Arainn Mhor Sustainable Development goals available in Appendix E

6 Population at the time of most recent island census in 2006

7 Note that all island areas are given in km

2 as the metric system is what is used in my native country, Ireland.

3.1.3 Energy consumption and costs

Although connection to the mainland grid provides access to electricity at competitive prices

for the island’s citizens, the annual ESB power cost (see Table 1) for the island is in the

region of €1 million (Arainn Mhor Development Plan, 2008). Another large portion of annual

island energy expenditure is on fuel oil imported from the mainland for use in domestic

heating and transport.

Turf (peat) is used extensively on the island to generate domestic heat. The use of turf is very

economical but has a significant negative impact on the environment as a result of CO2

release during excavation and combustion. The economic viability of turf-burning may be

tested in the coming years with plans being drawn at European level to place a heavy tax or a

complete ban on its excavation and use for domestic heating purposes.

Table 1 Fuel consumption by type, quantity used and cost on Arainn Mhor

3.1.4 Renewable Energy

Renewable energy initiatives on the island have had minimal success thus far with one house

installing a geothermal eating facility and one other installing a domestic wind-turbine. The

enhancement of the renewable energy sector is one of the key focus points of the Arainn

Mhor Development Plan8. Communication links and visits have already been made to similar

island communities on the western coast of Scotland (Eigg and Gigha) and some Danish Isles

to enhance knowledge sharing and generate ideas that could be exploited on the island. Some

of the initiatives that have been identified by the Arainn Mhor Community Development

Group as having the most potential for implementation on the island are at micro-level

through installation of domestic solar panels and wood burning stoves similar to the

initiatives in the Aran Islands.

Large areas of land on the east side of the island have been left fallow with the decline in

agricultural activities on the island in the past thirty years. The island’s development plan

recognises that this area could have potential for the growing of willows and grasses for use

in the creation of biomass power, an initiative that has been extremely successful on Bere

Island off County Cork9. The growth and harvesting of these biofuels could fuel wood boilers

on the island, creating a renewable source of heat power.

Given the island’s location, wind energy could offer an efficient and economically viable

means of creating energy and employment. With an uninhibited access to wind, Arainn Mhor

has a resource that if developed appropriately could provide a socio-economic lifeline to the

island in addition to reducing the island’s carbon footprint. Donegal County Council is

currently upgrading the electricity infrastructure along the west of the county with a 110kV

transmission line being put in place. Providing that Arainn Mhor could improve its

connection to the mainland grid, the access to this 110kV transmission line would

accommodate the mass exportation of excess clean energy from the island to the grid.

Two enquiries have already been received by the island’s cooperative from wind-energy

companies, with one of the proposals involving plans to form a partnership with the

8 See Appendix F for Sustainable Development section of Arainn Mhor development plan

9 See case study of Bere Island in Appendix G

community to develop the resource. The case of community renewables in Scotland10

shows

that such partnerships can be mutually beneficial and provide significant socio-economic

opportunities for isolated communities. The Arain Mhor Development Plan 2008 – 2013

commissioned a wind-energy feasibility study for the island to take place, the results of

which have not yet been made available11

.

The western uplands of the island provide the best wind speed, the farthest distance from

dwellings and are outside the cliff margin SAC and NHA designations. As is the case in

many of the Irish island communities however, land ownership is the biggest constraint to

any potential development. Almost all of the land in the identified region has over 200

commonage holders with the hope of obtaining consent from all virtually impossible.

If wind power could be generated en-mass on the island it would also create opportunities for

the use of hydro-power, which could potentially act as a store of excess energy created. The

island has several high-level lakes that could facilitate the generation of hydro power but

concerns over fisheries at local level may cause complications on this front.

At domestic level demonstration renewable energy projects such as solar PV and solar

thermal could be carried out at Baile Saoire12

. The island development plan also stipulates

that contractors undertaking the renovation of buildings or the development of new builds

should be advised to incorporate renewable technologies and more importantly energy

efficiency measures to achieve the highest building energy rating (BER) possible.

10

See case of Fintry in 5.3.1.1 11

Canavan Associates (Derry) carried out consultancy work on the renewable energy potential on Arannmore but were unable to release the information to me in time for completion of this study. 12

Baile Saoire is a community owned facility where energy costs are prohibitive as the building is old and is heated entirely from electricity.

3.1.5 Energy efficiency

As mentioned in 3.1.4, the island development plan highlights the importance of promoting

efforts to achieve the highest BER rating possible, giving due consideration to cost-

effectiveness, when renovating old buildings or developing new builds. The 2006 Household

Socio-Economic Survey conducted on the island identified the significant improvements in

domestic energy efficiency since the previous study in 1992. The most common energy

saving features were double-glazing of windows, attic insulation, lagged hot water tanks and

cavity wall insulation. Of the households surveyed, over 67% had attic insulation and lagged

hot water tanks in 2006 compared to only 33% in 1992, while 67% of the households

surveyed also had double-glazing in 2006 as opposed to just 11% in 199213

.

3.1.6 Finance

While there has been minimal implementation of renewable energy technologies on the island

thus far, the Arrain Mhor Island Development Plan 2008 – 2013 has identified a list of

sources for potential financing if required. These sources include:

The Department of Arts, Heritage and the Gaeltact14

Udaras na Gaeltechta15

Comhdháil Oileáin na hEireann16

EU initiatives administered by bodies such as ManagEnergy and ISLENET

13

Results available in the Arranmore Development plan 2008 – 2013 available online at: http://www.arranmoreco-op.com/classified/englishplan.pdf 14

Referred to in the Arannmore Development Plan by its previous name, the Department of Community, Rural and Gaeltacht Affairs 15

Udaras na Gaeltachta are a regional state agency with responsibility for the economic, social and cultural development of Irish-speaking (Gaeltacht) regions of Ireland. 16

The Irish Islands Federation

http://www.arranmoreco-op.com/classified/englishplan.pdf

EU funding programmes such as the ALTENER II Programme with opportunities

under the INTEREG IV.

Sustainable Energy Ireland

3.2 Isle of Eigg (Scotland)


Population: 8917

Jurisdiction: Highland Region

Area: 29.78km2

Ownership structure: Isle of Eigg Heritage Trust

3.2.2 Grid-connection

The Isle of Eigg has no connection to the mainland electricity grid. In 1997, the Eigg

Heritage Trust18

conducted a community buyout of the island. From this stage they began to

identify strategies to halt the deteriorating socio-economic conditions for the residents.

Following a consultation and feasibility study, Senergy EConnect19

produced an outline

design and budget for the implementation of a micro-grid in October 2004.

By May 2006 funding for the development had been obtained and the design phase

commenced with construction completed in February 2008. The relatively large size of Eigg

and the sparse population made the grid network development quite complex with

approximately 11km of high-voltage cabling and a large inverter and battery system required

to facilitate the 3.3kV network. A further issue faced during the micro-grid development was

17

Population figure accurate as of June 2012, provided by Eigg Heritage Trust 18

Eigg Heritage Trust was formed by island residents, the Highland Council and the Scottish Wildlife Trust 19

Senergy EConnect, 2007. Smart Grids implemented on Scottish Islands. Accessed online via: www.senergyworld.com/Econnect/smart_grids_and_mobility.ppt

the range of renewable energy sources that the grid had to be compatible with i.e. hydro,

wind and solar PV (EConnect, 2007).


Energy consumption on Eigg has shown a marked transformation in the past 15 years. The

dependence on diesel for energy generation (see Table 2) has fallen to less than 10%

compared with over 80% before the renewable energy initiatives were implemented20

(Ashden Awards, 2010). Nevertheless, the island’s two diesel generators continue to play an

important role in the provision of reliable back-up power.

Table 2 Energy contribution to overall Eigg supply by source21


Since the inception of the Isle of Eigg Heritage Turst, the island has reduced household

carbon emissions by 47%, from 8.4 to 4.45 tonnes per year (Ashden Awards, 2010). Central

to this achievement has been the successful installation of a range of renewable energy

technologies (see Table 3) to feed into the local electricity grid. The majority of the island’s

power is provided by a 99kW micro-hydro system, backed up by 10 kW of solar PV power

and 24 kW of wind-power, coming from four separate 6kW turbines. Smoothing energy

20

Note that the 17% figure for diesel contribution to overall supply in the table includes the use of diesel for transport 21

All data and table information obtained from Eigg Heritage Trust and Eigg Electric.

demand and supply is a very important feature of the electrical grid on Eigg and this is done

using lead-acid batteries that store surplus energy and so accommodates the provision of a 24

hour electricity supply.

Table 3 Renewable Energy Initiatives on Eigg


Shortly after the installation of the micro-grid, the Eigg Heritage Trust and Eigg Electric

realised that electricity demand would have to be managed in order to minimise the reliance

on the back-up diesel generator on the island. In order to achieve this target, a 5kW daily

demand cap is placed on domestic customers, and a 10kW cap put on businesses and

commercial premises. All households and businesses have OWL22

meters installed that

displays both current and cumulative electricity usage and notifies the user when

consumption comes within range of the pre-defined limit. Through the various measures

Eigg’s residents have gained a keen awareness of the energy intensity of their domestic

behaviour and are thus able to minimise their energy consumption.

22

OWL is a leading model of wireless electricity monitor

Another demand control initiative is the warning system in place when the renewable energy

sources cannot meet demand and the back-up diesel generators are called into action. On such

“red-light days” the islands inhabitants amend their electricity demand accordingly until the

sustainable level of demand is reached and the “green light” returns.

Traditional energy efficiency measures have also been implemented such as the refitting of

inefficient boiler systems, installation of loft and wall insulation, solar water heating23

, etc.,

while new energy sources are being piloted such as the sustainable harvesting of biomass for

use in domestic heating.

3.2.6 Finance

The energy efficiency measures being implemented on Eigg are financed through various

means (see Table 4). The Heritage Trust has insulated all of the properties it owns at no cost

to the tenants while private properties have self-financed any measures they have taken in

their own properties. The provision of solar water heating will take place using the same

financial structure.

Eigg residents have additional access to a Green Grant scheme operated through the Trust.

Under this scheme, residents can claim up to 50% of the cost of any equipment24

which

reduces carbon emissions, up to a £300 limit.

During construction of the island’s micro electricity grid, island residents contributed to the

installation costs by paying £500 for a 5 kW connection and £1,000 for a 10 kW connection.

A daily standing charge for households of £0.12 for a 5 kW connection and £0.15 for 10 kW

23

This source of solar power is not used to generate any electricity. It is solely used to provide hot water and heating for domestic use. 20% of households on Eigg now have these solar heating systems in place. 24

Purchases included bikes, solar water heating, secondary glazing, thicker curtains and polytunnels to grow fresh food locally rather than importing it.

is also in existence while the cost of electricity per kWh is at a flat rate of £0.21. As

previously mentioned, anyone who exceeds the daily limit receives a call-out from the

maintenance team. The household is then subject to a £20 levy in the case of such an event.

The Eigg Heritage Trust has an annual budget of approximately £200,000. Included in this

total is the employment of one full-time employee. The trust is responsible for managing

community and trust-owned buildings while the Eigg Electric subsidiary is responsible for

the operation and maintenance of the island’s electricity generation and micro-grid.

Table 4 Sources of finance for Eigg Electrification and associated initiatives

3.3 Gigha (Scotland)


Population25

: 156

Jurisdiction: Argyll and Bute

Area: 14.16km2

Ownership: Gigha Heritage Trust

3.3.2 Grid connection

The capacity of the current grid connection between Gigha and the mainland is 225kW but

permission for a significant upgrade has recently been successful. The cost of upgrading the

grid connection and associated works has been estimated at between £200,000 and £300,000.

This is a significant outlay for the Gigha Heritage Trust and requires upfront investment. If

the appropriate level of finance can be sourced, the improved grid infrastructure has the

potential to generate an additional £40,000-£50,000 per year for the Trust by facilitating

increased renewable energy output.

25

Population figure accurate as of June 2012, provided by Gigha Heritage Trust

3.3.3 Energy consumption and cost

Currently Gigha has no records of the levels of energy consumed annually on the island or

the associated costs. This is mainly due to the difficulty in compiling such information. The

Trust, however, keeps a record of expenditure on energy used in Trust-owned buildings from

the various sources (see Table 5 below).

Table 5 Energy costs (2010) by fuel type for properties owned by Gigha Heritage Trust

In the industrial sector, one fish farm based at the south side of the island uses in excess of

150,000 kWh per month, resulting in an annual electricity bill in the region of £270,00026

.

There are no figures available for the other industrial users of energy on the island but given

the energy intensity of the fish-farm from which details were obtained, and the resultant

costs, developing renewable energy and energy conservation measures could have huge

potential for the economic sustainability of firms operating on the island.

26

Estimated using the Energy Savings Trust’s standard charge electricity price of £0.15 per kWh.


The renewable energy strategy on Gigha, as part of their overall island development plan, is

centred on the “Dancing Ladies”. These three pre-commissioned Vestas V27 turbines formed

the first community-owned, grid-connected wind-farm in Scotland. The turbines are

relatively small by modern turbine standards, producing 2.05 gWh of electricity per year.

The decision of the Trust to use pre-commissioned turbines was based on the realisation that

at the time the strategy was being developed many smaller wind-farms across Europe were

replacing small and medium sized turbines with much larger models (EnergyShare, 2011).

This meant that there was good availability of second-hand turbines with sufficient lifespan

still remaining. The availability of Feed-in-Tariffs (see 5.3.3) for new turbines has also

resulted in a shift towards the use of new turbines.

The Trust is now proposing a new Enercon E-33 installation. This new model is more

efficient and has increased electricity production potential of up to 330kW. The lifespan of

the new turbine is 25 years and so will provide greater certainty due to reduced breakdown

and maintenance concerns.

The Trust, supported by Community Energy Scotland and the Climate Challenge Fund, has

had a member of staff working on upgrading the wind-turbine project for two years. During

this time a full feasibility study has been carried out. This included the undertaking of a

successful economic appraisal and EIA. Contract negotiations have also been taking place

with the contractors and turbine manufacturer, while the Trust has also pursued Ofgem for

clarity on the qualification of the proposal for Feed-in-Tariff financing to ensure that the new

turbine will meet the schemes requirements. Once contract negotiations, planning permission

and financing considerations have been agreed upon, a timeframe for the new development

will be put in place.

The regeneration of housing on Gigha has seen the utilisation of micro renewables at

domestic level. Eighteen new homes built on the island in recent years have solar thermal

heating as standard while wood-burning stoves and solar water heating have been applied to

many of the islands refurbished houses.


A major challenge that has faced, and continues to face Gigha’s development is the housing

stock. In 2002, a housing survey conducted in conjunction with Argyll and Bute Council

found that 75% of the Trust’s housing stock was “below tolerable standard” (BTS) and an

additional 23% was categorised as being in “serious disrepair” (EnergyShare, 2011). Such

poor housing standards only served to supplement the lack of economic opportunities on the

island and the population fell to 96, with only 6 children attending the island’s primary

school.

Having identified the importance of improved housing to the future success of the island, the

Trust created a Housing Improvement Programme to help deliver warm and dry housing to

the island’s community. Delivery of the programme requires funding in the region of

£6million, with the revenues from the “dancing ladies” an essential element of this27

. Thus far

26 properties have been renovated to a high standard providing warm, dry homes for the

inhabitants and minimising the environmental impact of the community through micro-

renewable energy generation at domestic level.

An additional 18 new houses have been built on the island and are completed with solar

thermal heating as recommended by the Gigha Development Plan. The improved housing

27

Information provided by the Gigha Development Trust to EnergyShare estimates that average annual revenue from the turbines since their installation has been £150,000 with a net profit of £75,000 once repayments and maintenance costs are met.

standards, increased energy efficiency standards of homes and the resultant lowering of

energy bills and carbon footprint has reinvigorated demand for housing on the island with the

population now standing at 156, with 22 children in the primary school. For this trend to

continue, the success of the “dancing ladies” and the new turbine in particular is essential to

help fund the continued regeneration of the island’s sub-standard housing.

3.3.6 Finance

The Trust’s renewable energy and subsequent development strategies have been implemented

using a three-way mix (see Table 6) of grant funding, loan finance and equity finance

(EnergyShare, 2011).

Table 6 Funding by type, source and amount for “Dancing Ladies” development28

The proposed new turbine and the associated upgrade of the connection to the grid is

anticipated to cost in the region of £1 million. This is a very large upfront cost requirement

that the Trust will have to work hard to raise from a variety of sources.

The grid upgrade is being part-financed by grants through the CARES Fund29

and the

Climate Change Fund. The remainder of the project will be commercially financed however,

28

Fresh Futures funding is sourced from the National Lottery. Scottish Community and Householder Renewables Initiative funding is Scottish Executive money administered through the Highlands and Islands Enterprise Board.

making it eligible for the Feed-in-Tariff. The Trust’s efforts to raise finance have been dealt a

blow recently with £200,000 of European Regional Development (ERDF) funding being

withdrawn due to concerns over the relationship between Feed-in-tariffs and public funding.

The financial model developed by the Trust to underpin the project is deemed to be robust

and capable of widespread replication in similar island communities. The Gigha experience

should serve to promote renewable energy development that fuels socio-economic

revitalisation in rural island communities.

29

See Section 4.3.4 for more detail

3.4 Westray (Scotland)

3.4.1 General Information

Population30

: 563

Jurisdiction: Orkney Islands

Area: 47km2

Ownership: Westray Development Trust


The 33kV Orkneys grid network facilitates the 2.7MW of wind-energy that is generated in

Westray (see Figure 7). Plans are currently in place to supplement the traditional Orkney

Island network with an Active Network Management Scheme (ANM), a smart-grid network

that will cover the entire region. As the region has developed its renewable energy generating

capacity, it has continually put increased strain on the traditional network which is connected

to the mainland (Scott, 2012). The implementation of the smart-grid will reduce the levels of

congestion within the Orkney’s network.

Through the ANM scheme a further 20MW of renewable energy generation can be facilitated

at a cost of approximately £500,000. If this additional capacity was to be facilitated by

improvements to the traditional grid network through subsea cable reinforcement, the costs

incurred would have been in the region of £30 million (Scott, 2012). The scheme will

continually monitor the network and restricts generation to maintain overall security.

30

2001 census available from: http://www.scottish-islands-federation.co.uk/population.htm

http://www.scottish-islands-federation.co.uk/population.htm

As detailed further in section 3.4.4.3, studies and trials are on-going into the development of

a huge tidal energy project in the Westray South region. If the project is to go ahead,

preference has been provisionally stated for one single grid connection for the project. This

means that permission is likely to be sought for the installation of a new 200MW grid

connection, entirely separate from the existing connection. Based on initial SSER feasibility

studies it would appear that a subsea cable would not be cost-effective and so a completely

new overhead line and inter-island cabling network would be established as part of the

project (SSER, 2011).


Unfortunately no figures were obtained during the study for energy consumption or

associated costs for Westray.

Figure 7 Map of current grid network in Orkney Islands

Source: Scott, 2012


3.4.4.1 Westray Development Trust

In 2004, the Westray Development Trust (WDT) began exploring and analysing potential

projects that would have socio-economic benefits for the island which was struggling to

provide sufficient living standards and economic opportunities for its residents. Given the

extreme peripheral location of Westray and the wind-resource available an ambitious plan was

developed which centred around the erection of a large community-owned turbine. The

Westray Renewable Energy (WRE) Ltd was set up to manage the turbine.

Installation of the community turbine commenced in early 2009 and by September of the same

year the turbine came into operation. The energy generated by the turbine is sold to

SmartestEnergy Ltd.31

who specialise in the purchase of energy generated by independent

suppliers and in turn sell the energy created to Marks & Spencer Scotland to help them

achieve the aims set out in their green policy.

WRE have sole control of the turbine operation and the cost and revenue streams associated

with its operation. These revenues include the direct profit from the sale of energy created and

the Feed-in-Tariff available to the turbine. Any revenues generated by the turbine and not used

to cover WREs costs are transferred back into the WDT.

The primary purpose of the wind turbine is to create a steady revenue stream for the WDT

which can be used to deliver a range of programmes and services to the community, including

the provision of small grant support to households for energy efficiency improvement

measures.

31

Smartest Energy Ltd.: http://www.smartestenergy.com/About-Us/About-Us.aspx

http://www.smartestenergy.com/About-Us/About-Us.aspx

The energy output of the turbine for the first 12-months of operation is detailed in Table 7

below. The average energy produced from the turbine per month was 255.25 MWh which,

based on revenue available through the Renewable Obligation Certificate (ROC) 32

scheme

could generate approximately £157,683 in revenue for the WDT33

.

Table 7 Energy produced (MWh) by Westray turbine in first 12-months of operation

The lifespan of the community turbine is expected to be between 18 and 20 years with

revenues accrued beyond the cost of loan repayments being hypothecated for replacement of

the turbine in the future.

3.4.4.2 Industry

Industry on the island is focussed on Westray Processors who process and distribute seafood

for the domestic and export markets. As a very large energy user, management at Westray

Processors have been undertaking detailed consultations with WRE and legal representatives

32

Renewable Obligation Certificate price of £51.48 per MW produced correct for 2011. Obtained via: http://www.decc.gov.uk/en/content/cms/meeting_energy/renewable_ener/renew_obs/ro_support/ro_support.aspx 33

Note that this calculation is a revenue estimation made using the ROC price obtained from Ofgem for 2011 (see above) with no external cost factors included. Final profit would be significantly lower than this figure.

http://www.decc.gov.uk/en/content/cms/meeting_energy/renewable_ener/renew_obs/ro_support/ro_support.aspx

http://www.decc.gov.uk/en/content/cms/meeting_energy/renewable_ener/renew_obs/ro_support/ro_support.aspx

to see how they would approach the installation of a turbine close to the factory site and the

management of any turbine erected. As of yet no firm decision has been made on whether the

project will go ahead or not.

3.4.4.3 Tidal Energy Leasing Round

In the 2010 leasing round for tidal energy, Scottish and Southern Energy Renewables (SSER)

was awarded an Agreement for Lease (AfL) for the Westray South site. The AfL grants SSER

a 5-year period for exclusive trial development but is not a licence or consent to install tidal

energy converters on the site (SSER, 2011). Provisional studies and knowledge of the site

suggest that there is a potential for installation of a tidal array with a capacity of up to 200

MW.


Fuel poverty within island communities is a very real issue and efforts to address this poverty

have proven to be the catalyst for many wider-scale green development strategies being

developed. This is particularly true in Westray where in 2007, the WDT were successful with

a grant application to the Big Lottery Fund. The funding included specific funding for a part-

time project officer on fuel poverty. Through the project officer a survey of energy efficiency

of island dwellings yielded shocking results about the standard of housing stock on the island

(see Figure 8a and 8b). Using both SAP34

and NHER35

energy rating systems, the vast

majority of households on Westray received the lowest possible rating.

34

SAP ratings are the Government’s Standard Assessment Procedure for energy rating of dwellings 35

National Home Energy Rating system

Figure 8a 2008 breakdown of household energy survey using SAP ratings

Source: Westray Development Trust (2008)

Figure 8b 2008 breakdown of household energy survey using NHER ratings

Source: Westray Development Trust (2008)

3.4.5.1 Westray Fuel Poverty Project

The shocking results of the household energy survey brought the Westray Fuel Poverty

Project to the fore of community development. The fuel poverty project implements an

innovative approach to energy consumption which is linked to financial saving and the

reduction of carbon emissions from local housing.

The key features of the programme are to promote the use of ground source heat pumps to

replace traditional sources of heat energy from open fires, oil fired boilers and storage

heaters, and the widespread draft-proofing of houses and installation of insulation to meet

acceptable standards. Given the stone wall traditional structure of most housing on Westray,

cavity-wall insulation is not practicable.

The Westray Fuel Poverty Project has focussed on the most cost-effective solutions to

improving energy efficiency in the island dwellings. In 2009, the project assisted in providing

loft insulation to over 30 homes leading to improved energy efficiency ratings and provided

applicant households with specialist advice on the types of grant funding available for energy

efficiency improvements.

Financial assistance from the Energy Saving Trust in late 2009 allowed the Fuel Poverty

Project to provide nine of the most inefficient homes in Westray, all of whom would struggle

to access financial assistance elsewhere, with Ground Source Heat Pumps, improved loft-

insulation to the 270mm standard, draught proofing, energy efficient light bulbs and

plugs. The nine houses that received this comprehensive treatment have dramatically

increased their energy efficiency rating and are now acting as examples of the Fuel Poverty

Project’s success.

3.4.5.2 Energy Action Westray

Energy Action Westray is an organisation who has set out ambitious plans to reduce

greenhouse gas emissions on the island by 80% by 2050. Through funding by the HIE, the

organisation has been able to purchase a premises to operate out of. The centre offers a focal

point for the island community to access information on climate change matters,

demonstrations of renewable energy and energy efficiency measures and advice on the

various funding streams available to help implement these measures.

3.4.6 Finance

The community turbine project has received funding from a variety of sources. Initial grant

finance was provided by the Orkney Islands Council and was followed by a Big Lottery Fund

Grant of £761,000 which covered approximately half of the required investment. The

remaining funding was secured as a commercial loan from Triodos Bank. This loan is repaid

over a ten year period.

The revenue from the turbine in the first ten years will be limited due to the loan repayment

requirements but once these have been met, annual income is projected to be in the region of

£200,000. The revenue currently being earned by the turbine is being hypothecated for use in

various community schemes including energy efficiency measures to help alleviate fuel

poverty (Communities for renewables, 2012).

3.5 The Aran Islands (Ireland)

3.5.1 General Information

Population: 1251

Inis Mor (845) Inis Meain (157) Inis Oir (249)

Jurisdiction: Co.Galway County Council.

Area: 31km2

Ownership structure: All private landowners


The Aran Islands off the County Galway coast consist of three islands; Inis Meain, Inis Oir

and the largest, Inis Mor. The three islands are connected to the mainland electricity grid via

a single 3MW cable which provides imported energy to all three islands. The islands have

traditionally been a major energy importer but with the development of renewable energy on

the islands the potential exists to reverse this trend provided the connection to the mainland

grid is upgraded and maintained at a level that can accommodate increased electricity

generation. Plans to upgrade the grid connection in the future are currently only speculative.


No specific information on the levels of energy consumption on the Aran Islands was

obtained during research. Being connected to the mainland grid, it is known however that the

islanders pay the standard rate for electricity on the island of €0.051 per kWh36

.

36

Electric Ireland standard rate kWh electricity price as of 4th

August 2012. Accessed via:

The lack of access to transport and liquid heating fuel on the island means that the standard

price of such fuel on the mainland is much cheaper than on the island where it is subject to a

supplement due to the cost of transporting the fuel to the island via ferry.


3.5.4.1 Inis Oir

As a member of Comhdháil Oileáin na hÉireann37

, representatives from Inis Oir travelled to

Gigha in 2005 to take part in a conference on how other European islands were reducing their

independence on fossil fuels and increasing their sustainable development potential. On their

return to the island, Inis Oir’s representatives held a consultation with the island’s citizens

and agreed upon the development of a strategy that would reduce dependence on imported

fossil fuels but that would not involve large financial outlay.

During follow-up studies of energy patterns and demand on the island it was identified that

tourism was the largest industry and user of energy, and hot-water in particular, on the island,

particularly during the summer months. Thus it was decided that the island would pursue the

implementation of a new technology for generating sufficient hot-water to meet tourist

demand.

Various options were evaluated before the island’s cooperative decided to pilot a biomass

wood pellet burner and a Solar Thermal system with excess hot water being used to provide

central heating (Comhar Caomhán Teoranta, 2008). The biomass boiler was to be fuelled by

http://www.moneyguideireland.com/category/electricity-charges 37

Comhdail Oileain na hEireann translates as The Irish Island’s Organisation. The Organisation represents islands and islander issues at European level.

http://www.moneyguideireland.com/category/electricity-charges

wood produced and harvested on the island and so there would be an overall carbon neutral

impact from the energy produced.

Two separate houses were chosen for the wood-pellet boiler and solar thermal system pilot

scheme. Over the trial period the wood pellet burner saved the pilot household over 15% on

fuel costs and provided free additional central heating capacity. The solar thermal system was

an even greater success with free hot water available to meet and far exceed the house’s

requirements leading to a vast reduction in fuel oil and electricity costs. The success of the

pilot scheme has led to implementation of similar initiatives in several homes on the island.

The Inis Oir cooperative have begun to evaluate the potential for wind and tidal power

generation on the island but due to financial restrictions have been unable to implement any

such initiatives thus far.

3.5.4.2 Inis Meain

During the late 1990s Inis Meain suffered from a severe lack of fresh water due to a sustained

period of lower rainfall on the island and the unaccommodating geology of the island which

consists of karst limestone38

rock under a thin layer of soil and sand. At the worst point in the

crisis, freshwater supply was restricted to two hours on a Tuesday and two hours on a

Thursday. Further strain was put on the supply during the summer months with the large

influx of tourists.

The Inis Meain Cooperative started to look for solutions to the issue and decided that, given

their surroundings, desalination of seawater for domestic use could provide an answer to the

island’s problems. For desalination of seawater to work, it requires heating the water to 70

38

This permeable rock type means that very little water is preserved by the ground for use by the island dwellers.

degrees Celsius. Given the large freshwater requirement of the island and the energy intensity

of heating vast volumes of sweater to this temperature, the Cooperative was aware that using

traditional fuel resources (diesel generators and mains electricity) would be uneconomical. In

response they introduced wind-turbines to help fuel the desalination process.

Despite some initial scepticism amongst the islanders, the turbines have been a success on

Inis Meain. The three 225kW turbines fuel the desalination process that provides 40% of the

island’s potable water requirements (Udaras na Gaeltachta, 2009) and generates revenue

through excess energy exported to the grid (SEAI, 2003). This revenue can then be used by

the Cooperative for advancing the island’s other sustainable development goals.

3.5.5 Transport

The Aran Islands flagship venture is the Electric Vehicle (EV) trial that is currently taking

place. SEAI and the Department of Arts, Heritage and the Gaeltacht39

have been piloting a

project aimed at developing the technologies and methods available for electric cars to store

high amounts of renewable energy that could potentially be generated on island communities.

The scheme sees eight Mega ECity electric cars operating on the three islands for a 3-year

period. It is anticipated that electricity costs per vehicle will range between €90 and €180 per

annum depending on the electricity tariff the individual household is subject to. The use of

smart meters and smart charging units allow homeowners to charge their EV at the optimal

time when available wind-power is at its maximum and thus the tariff for customers is at its

lowest. By maximising the proportion of energy stored in the EV from local wind-power

there will be a much reduced proportion of energy required from the mainland. The smart-

charger units and smart meters will also be able to calculate the proportion of electricity from

39

formerly Department of Community, Equality and Gaeltacht Affairs

renewable sources that is being used to fuel the car and so an accurate CO2 footprint of the

vehicle can be easily established.

It has been explicitly stated as an ambition of the project that the technologies developed here

and the pilot scheme’s success can serve as a blue print for similar systems on other island

communities and ultimately at national level which could significantly reduce Ireland’s

exposure to fossil fuel price and supply shocks in the future.


The Aran Islands Energy Cooperative has set an ambitious 10 year target to make the island

energy independent (MacGiolla Phadraig, 2012). The Energy Cooperative intends to meet its

initial energy reduction targets by providing assistance to island households to make domestic

improvements such as installation of double-glazed windows and wall and ceiling insulation.

During the first year of the energy efficiency programme, the Cooperative has already

implemented widespread energy efficiency improvements in the island’s public buildings.

3.5.7 Finance

While details of the levels of financial support for the various projects on the Aran Islands

were not available, the sources of funding being used to further the island’s objectives, as

identified by Udaras na Gaeltachta (2009), include:

The EU Fifth Framework on Research and Innovation which provides support to

demonstration projects that meet the fund’s criteria.

Udaras na Gaeltachta who provide R&D grants, share capital and training grants.

Galway County Council, being responsible for the provision of potable water, assisted

in the Inis Meain desalination project through grants for civil engineering works and

improvements to the water system.

The Cooperatives on the islands accessed additional funding via commercial bank

loans.

CHAPTER FOUR

FINANCIAL ASSISTANCE AND FISCAL

INCENTIVES FOR RENEWABLE ENERGY

AND ENERGY EFFICIENCY MEASURES

One of the primary constraints on renewable energy development is the availability of

finance and the sustainability of national support schemes, particularly in this era of fiscal

restraint and consolidation (European Commission, 2012). At national and EU level however

there still exists numerous support schemes extending financial assistance to individual

projects and communities. Making island communities aware of the support structures

available to them will be critical to the success of their efforts to move to a low-carbon

society. This chapter looks at the financial support available to Ireland and Scotland from

domestic sources and also from central European Funds.

4.1 Provisions for Renewable Energy Generation in Irish Policy

The Irish Governments Programme for Government 2011-2016 makes clear provisions for

the support of renewable energy generation, particularly at small-scale and community level

(Department of Taoiseach, 2011)40

. One of the recommendations of the Report of the High-

Level Group on Green Enterprise (Forfas, 2009) is to develop greater public understanding of

the economic, environmental and social advantages of local renewable energy projects and

encourage cooperation amongst communities to develop and promote renewable energy

projects. The White Paper on Energy (DCENR, 2007) acknowledged that greater community

involvement in renewable energy initiatives is a widely endorsed practise. However, specific

measures to increase community involvement and reduce barriers in the establishment of

community renewable41

energy resources were not subsequently outlined.

40

Details of the “Green Jobs” element of the Programme for Government available in the Appendix 41

See examples of community renewable energy in Ireland in Appendix G

4.2 Ireland - Financial assistance and fiscal measures for renewable energy and

energy efficiency initiatives

4.2.1 Feed-in-Tariff

The Renewable Energy Feed-in-tariff (REFIT) scheme came into existence in Ireland in

2006, replacing the previous competitive tendering process. The aim of REFIT is to provide

power purchase agreements to renewable energy projects over a 15-year period. To qualify

for the scheme, applicants must already possess planning permission and access to the grid.

The REFIT42

scheme in Ireland consists of three phases43

:

REFIT 1 extends to cover onshore wind, biomass, landfill gas and hydro.

REFIT 2, which covers the same renewable energy sources, is still with the EU

Commission for state aid clearance.

REFIT 3 extends to cover a much wider range of renewable energy installations

including some bioenergy related categories such as anaerobic digestion, CHP and

biomass combustion (Comhar, 2011) and is also currently awaiting Commission state

aid clearance.

42

The development of new renewable technologies such as wave, tidal and offshore wind will be subject to a separate type of state aid application. 43

Due to the widespread uptake of REFIT assistance for domestic Solar PV installations, it is no longer included in the REFIT scheme due to the large expenditure implications in this period of fiscal consolidation by the Irish Government.

Table 8 Ireland REFIT scheme – Price (€) per MWh44

Source: DCENR, 2012

4.2.2 Tax Relief

Tax relief is available for corporate equity investments in some specified renewable energy

projects (solar, wind, hydro or biomass) as set out in Section 62 of the Finance Act 1998. The

method through which the relief is provided is via a deduction from firm profits for direct

investment in a qualifying renewable energy company (Comhar, 2011).

4.2.3 Accelerated Capital Allowance Scheme

Through this scheme firms are able to write off costs of specified energy efficient

technologies and renewable energy technologies in their entirety in the first year of purchase.

These provisions are set out in Section 46 of the Finance Act 2008 (Comhar, 2011).

44

Large-scale wind refers to an onshore project with production capacity in excess of 5MW

4.2.4 Rural Development Programme Fund

The LEADER scheme which previously provided funding for development in rural areas has

been replaced since 2007 by the Rural Development Programme Fund. This scheme provides

a percentage of grant aid for specified small scale microenterprise or community projects that

have renewable energy generation as a core feature (Leader Partnership, 2012).

4.2.5 Grant Schemes

The distribution of grants for energy efficiency and renewable energy measures at domestic

level is carried out by SEAI. The most popular schemes under the SEAI (2012) are the Better

Energy Homes scheme and the Warmer Homes scheme. Previous measures such as the CHP

deployment scheme and the Renewable Heat Deployment Programme (ReHeat) have been

abandoned in the last few years due to the Government’s financial constraints.

4.2.6 Bioenergy Establishment Scheme

The Department of Agriculture (2012) has a grant scheme in place which provides grants to

farmers for planting willow and other suitable biomass crops which can be used for

renewable generation of energy and heat. The available grant can be up to €1,300 per hectare

or 50% of the cost of the development.

4.2.7 Community Based Organisations (CBOs)

In 1990 Energy Action visited Tory Island off the west-Donegal coast and insulated the

homes of its inhabitants. Insulation of homes of those living in fuel poverty by CBOs had

traditionally been focussed on urban areas but with the success of the Tory Project the

scheme was extended to cover those living in fuel poverty in rural and isolated communities

also (McGeough, 2011).

Today the services provided include attic Insulation, cavity-wall insulation, draught-proofing,

fitting of lagging jackets, lagging of pipes, installation of CFL bulbs, energy advice and BER

ratings (McGeough, 2011). At local level, eligible homes are identified by CBO’s via a

network drawn from statutory, community and voluntary sectors i.e. List of households in

receipt of fuel allowance from Department of Social Protection or referrals from charitable

and community organisations such as St Vincent de Paul, the Money Advice and Budgeting

Service (MABS), etc. The households in question are unable to invest in energy efficiency

measures and thereby avail of HES grants.

4.2.8 Carbon Tax

While the carbon tax is not hypothecated for use on renewable energy or energy efficiency

measures, its existence serves to increase the cost of fossil fuels and improve the

competitiveness of energy from renewable sources (Department of Finance, 2009). It is worth

highlighting the impact that the UK floor-price for carbon (see 5.3.7) could have on

renewable energy generation in Ireland. With two interconnectors in place between Ireland

and the UK, and Northern Ireland being a part of the Single Electricity Market in Ireland,

there will be significant increased demand for energy created within the Republic of Ireland

which will become much more cost-competitive.

Figure 9 Map of CBO network in Ireland

Source: McGeough, 2011.

4.3 Scotland - Financial assistance and fiscal measures for renewable energy and

energy efficiency initiatives

4.3.1 Renewable Heat Energy Payment

Through the UK government, the Renewable Heat Premium Payment scheme (see Table 9) is

aimed at helping domestic households to install micro-renewable systems such as biomass

boilers, solar thermal panels and heat pumps (air to water, ground source or water source).

The amount available to each household is dependent on the technology to be implemented:

Table 9 Levels of Renewable Heat Energy Payment available45

4.3.2 Home Renewable Loan scheme for renewable heating systems only

The Home Renewable Loan scheme offers interest free loans of up to £10,000 for renewable

heating systems (i.e. heat pumps, solar thermal and biomass boilers). The interest free loans

will be available for up to 100% of the installation costs up to the maximum of £10,000

(Energy Savings Trust, 2012). The loans are fund-limited however and will operate on a first-

come first-serve basis with applications accepted from 1st August 2012. An alternative

interest free loan of up to £2000 will still be available for electrical technologies (i.e. micro-

wind and solar PV).

45

Current phase of the scheme will run from May 1st

2012 until March 31st

2013.

Technology Funding available

Solar thermal hot water £300

Air-to-water heat pump £850

Ground-source or water-source heat pump £1250

Biomass boiler £950

4.3.3 Feed-In Tariff scheme (FITs)

The UK Feed-in-Tariff works in the same manner as the REFIT scheme in Ireland. Domestic

installation of renewable technologies for electricity production can qualify for direct

payment from energy suppliers for the energy produced. Those participating in the scheme

will also benefit from reduced bills as they will be using their own electricity.

The scheme extends to cover most domestic technologies and some larger systems (with

capacity of up to 5 megawatts) including Solar PV, wind turbines, hydroelectricity, anaerobic

digesters and micro CHP.

All large energy suppliers are obliged by law to make FIT payments to customers. It is not

compulsory for small energy suppliers to make FIT payments although some opt to do so.

FITs (see Table 10) are generally made available in three formats:

Generation tariff – The energy supplier will pay a per kWh unit price for electricity

generated. If your system qualifies for registration the tariff level will be guaranteed

for up to 25years.

Export tariff – A further 3.2p/kWh will be paid by energy suppliers for each unit of

generated electricity sold to the grid. This is a flat rate for all technologies.

Energy bill savings – Customers will make savings on their electricity bills as the

energy they produce will be used to meet domestic demand first.

Table 10 Feed-In-Tariff Levels (FITs) as of April 2012

Source: FIT Tariffs, 2012

4.3.4 Rates relief for renewable energy generators

The Scottish Government’s rates relief scheme offers discounts on business rates of up to

100% for renewable energy generators. For the 2011 to 2012 period the relief has saved the

renewables industry in the region of £4 million (Scottish Government, 2011). This money is

then freed up for reinvestment in the industry. Approximately 85 renewable energy projects

benefit from the relief, with about 50% of these qualifying for the 100% relief entitlement.

4.3.5 CARES Loan Fund

The Scottish Government’s CARES loan fund is delivered through Community Energy

Scotland with the aim of removing barriers to community or rural organisations who want to

develop and pilot new renewable energy generation projects (Community Energy Scotland,

2012). The loan fund incorporates:

Loan facility of up to £150,000

Up to 95% of agreed costs potentially being covered by the scheme

No security requirements from parties applying for loan

A fixed interest rate of 10% per annum

Local support and advice available to applicants

A write-off facility if a project fails to gain planning permission

4.3.6 CARES Rural Business Loans

This particular strand of the CARES loan scheme caters solely for rural businesses. Most

applications to this strand are from farmers who wish to implement a renewable energy

technology on their farm. The CARES Rural Business Loan can cover up to 95% of pre-

development costs such as EIA and technical feasibility studies up to a maximum level of

£150,000. Applicants to the scheme must contribute a minimum of 5% with interest charged

at 10% per annum.

Providing the project is successful, there is a responsibility on the developer to make an

annual payment to a local community organisation for 20 years of at least £10,000 per

megawatt of installed capacity. The community group will use these funds for community

development purposes (Community Energy Scotland, 2012 b).

4.3.7 Community Renewable Energy Support scheme:

The Highlands and Islands Enterprise (HIE) programme operates the Community Renewable

Energy Support Programme (CRESP) which provides grant funding and support for

community led renewable energy projects within the region.

CRESP support is delivered through Community Energy Scotland. The scheme can provide

up to £40k or pre-development technical assistant grant to applicant projects that exceed the

1MW threshold.

The HIE have traditionally supported community developments of wind and hydro projects

and this programme targeting projects over 1MW in size has been developed to build on this

success (Community Energy Scotland, 2012 c).

4.3.8 Carbon price-floor

In the UK Government’s 2011 Budget, the Chancellor announced the introduction of a

carbon price floor from April 1st 2013 which will set the price for a tonne at approximately

£16 (HM Treasury, 2011). While the carbon price floor does not offer direct support to clean

energy production, its introduction will serve to provide support and certainty for low-

emissions industries and make them much more competitive against traditional fossil fuel

energy producers.

4.3.9 Renewable Obligation Certificates (ROCs)

The Renewables Obligation is the primary support mechanism for renewable energy

generation in the UK. The scheme places an obligation on energy suppliers to source an

increasing amount of their energy from renewable sources. Ofgem issues ROCs to renewable

energy generators for each MW of energy produced. Energy suppliers must in turn buy

energy from these renewable generators and receive a ROC for each MW bought. If an

energy supplier does not possess enough ROCs to meet their obligation they must pay the

equivalent into a buy-out fund. The price of a ROC as of 2011 was £51.48 (DECC, 2012b).

4.4 Funding at EU level

4.4.1 The European Energy Efficiency Fund

The European Energy Efficiency Fund was set up to target investment in energy efficient

measures across EU member states (EEEF, 2012).

The EEEF is distributed in two streams:

i) Direct Investments of €5m to €25m loans made available to projects that come

from service companies (ESCOs), small-scale renewable energy and energy

efficiency service and supply companies that serve energy efficiency and

renewable energy markets in the target countries.

ii) Investments into financial Institutions that satisfy the relevant criteria. The

institutions receiving funding from the EEEF then lend the funds to specific

renewable energy and energy efficiency projects that meet the specified eligibility

criteria.

4.4.2 The Intelligent Energy Europe programme (IEE) 2007-2013

Some of the key aims of the IEE programme are to provide funding for projects that aim to

bring pioneering sustainable energy ideas into practise, and project development assistance

facilities with the aim of mobilising investment for renewable energy and energy efficiency

programmes at local level (IEE, 2012). The scheme had €730 million at its disposal for 2007-

2013 period with no agreement yet in place regarding its continued existence after this period

(European Commission, 2012).

4.4.3 EU Structural and Cohesion Funding 2007-2013

The aim of EU Structural and Cohesion funding is to “reduce the gaps in development and

disparities of well-being between their citizens and between the regions” (Ruse, 2007). For

the period 2007-2013 the Structural and Cohesion Funds represent about 36% of the total EU

budget at about €308 billion (Ruse, 2007)

In previous years the island regions of the west Irish and Scottish coasts were eligible for

receipt of funding from all strands of the Structural and Cohesion Policy Funds due to their

peripheral location and lower per capita GDP than mainland averages. With the accession of

the Eastern Bloc countries however the funding available from this stream has been primarily

directed to development in these areas.

4.4.3.1 INTERREG IVC programme:

One programme which is still available to Ireland and Scotland is the INTERREG IVC

operational programme which aims to support the exchange of experiences and networking in

the sustainable energy sector.

Specifically the programme will support regional initiatives aimed at experience exchange in

specific sectors to identify best practise and develop new tools for implementation, while the

fast-track option will bring together regions that have a strong experience in a specific sector

with regions wishing to improve in that particular field. The overall aim is to promote

convergence and the spread of best practise throughout the region.

Stimulating energy efficiency, the development of renewable energies, coordinating efficient

energy management systems and promoting sustainable development are explicitly

referenced as objectives of the programme. The programme has a total budget of €320million

for the period 2007-2013 with grant funding of €300,000 - €4million available for successful

applicant projects (INTERREG IVC, 2011).

4.4.4 Northern Periphery Fund 2007-2013

The Northern Periphery Programme is aimed at developing and helping to fulfil the socio-

economic and environmental potential of peripheral and remote communities on the northern

fringes of Europe. The identifying feature of the programme is the promotion of joint projects

that create innovative solutions and products that could benefit the programme partner

countries.

The regions qualifying for the programme share common difficult climatic conditions, sparse

population and remoteness. Through cooperative action excellent opportunities exist for

tackling common problems by developing shared solutions. The Programme covers a vast

area, encompassing the EU member states of Finland, Ireland, Northern Ireland, United

Kingdom and Sweden and Non-EU member states Faeroe Islands, Greenland, Iceland and

Norway (see Figure 10).

The two specified priorities of the Programme are:

1. Promoting innovation and competitiveness in remote and peripheral areas

2. Sustainable development of natural and community resources

Any projects applying for assistance must have one of these priorities as a primary objective.

During this period (2007-2013), the Programme will allocate €35.115 million in European

funding (ERDF) to partners in Member States (Finland, Ireland, Northern Ireland, Scotland,

Sweden) and for successful applicants will consist of a grant rate of up to 60% of total costs.

The contact points for the fund in Ireland and Scotland are the BMW Regional Assembly and

the Highlands and Islands Enterprise respectively (Northern Periphery Programme, 2012)46

.

Figure 10 Northern Periphery Programme countries

Source: Northern Periphery Programme, 2012

46

Contact details for regional Northern Periphery Programme representatives in Appendix

4.4.5 LIFE+ 2007-13

LIFE+ 2007-2013 is the EU’s financial instrument for environmental and nature-conservation

projects (European Communities, 2009). The LIFE programme has funded a wide range of

projects relating to energy production and distribution; industry and commerce; buildings and

households; transport and management. Examples47

of the type of projects receiving funding

under this scheme are:

Community energy efficiency and renewable energy initiatives

Sustainable energy development strategies

Development and demonstration of integrated Emissions control systems

Successful applicants to the LIFE+ scheme can qualify for grant aid of over €1 million.

4.4.6 European Agricultural Fund for Rural Development (EAFRD

2007-2013)

THE EAFRD is a stream of funding available under the Common Agricultural Policy (CAP)

and provides funding for farmers for the production of fuels for use in the bioenergy industry.

Successful projects can receive grant assistance towards preparing, setting, growing and

harvesting of willow trees and other plant-life that can be utilised in the bioenergy industry

(EAFRD, 2012).

47

Details of individual projects in Ireland receiving funding under LIFE+ available in Appendix

CHAPTER 5

PART I -

LOW-CARBON DEVELOPMENT

STRATEGIES ON ISLAND COMMUNITIES:

ECONOMIC, ENVIRONMENTAL AND

SOCIAL BENEFITS

Part I of this chapter contains a comparative analysis of the benefits that have accrued to

island communities from the pursuit of low-carbon development strategies under three

specific headings;

i. Environmental benefits

ii. Economic and employment benefits, and

iii. Social benefits.

Part II contains a summary of the most successful carbon-reducing initiatives, their potential

for replication and sources of financial assistance available for their implementation. This

information is presented in tabular form and is intended to act as a reference point for other

rural island communities looking for information on the pursuit of a low-carbon development

strategy. This is followed by an overall concluding summary of my findings at the end.

5.1 The success of renewable energy and energy efficiency measures on the islands

The benefits that can accrue to an island community from pursuing a sustainable

development strategy that focuses on the generation of renewable energy and the promotion

of energy efficiency are both numerous and significant. This chapter looks at the key benefits

from the case study of the five rural islands that could be replicated amongst similar island

communities.

5.2 Environmental benefits

5.2.1 Reducing the carbon footprint of island communities

Eigg

It is important to emphasise that the pursuit of renewable energy generation on island

communities is not solely to help achieve environmental objectives. Often the environmental

implications just happen to be a positive externality. In the case of Eigg, it was the pursuit of

a reliable permanent power supply on the island and the financial assistance available to do

so that led Eigg to pursue a green development strategy. If, instead of being available to

renewable energy generation projects, grant finance had been available to develop a small

coal-fired power plant that would provide a 24-hour energy supply, the community on Eigg

may have pursued this option instead. This point serves to focus the discussion on the fact

that island communities just want equal access to the services and opportunities that are

readily available on the mainland and they are willing to achieve that by whatever means are

available to them.

But while the environmental benefits from pursuit of a green development strategy may not

be the primary focus, it is a hugely significant by-product. In the case of Eigg prior to the

installation of the micro-grid and renewable energy installations most households relied on

diesel generators to supply electricity. This caused a large per-capita carbon footprint on the

island which was supplemented further by poor domestic insulation, inefficient heating

systems and the use of open peat or coal fires.

As discussed in section 3.2, the Eigg Heritage Trust has helped to:

- provide domestic insulation to 40% of the island’s homes,

- improve the efficiency of domestic heating systems,

- increase the use of wood (carbon neutral) for use in heating,

- provide 20% of the island’s homes with solar water heating, and

- generate enough renewable energy to provide the island with a 24-hour electricity

supply.

Through this array of measures, the average annual electricity use per household on Eigg has

been calculated at 2,160 kWh as opposed to a UK domestic average of 4,198 kWh. In

addition, annual domestic CO2 emissions on the island have been reduced by 47%, from 8.4

tonnes to 4.45 tonnes (Ashden Awards, 2010).

Inis Meain

The amount of electricity generated from renewable sources displaces the amount of CO2 that

would have been expulsed had the energy been created from traditional fossil fuel sources.

The three turbine capacity of 675kW on Inis Meain, if replacing standard fossil fuel

generated electricity, would save an estimated 636 tonnes48

of CO2 per annum. However,

because the renewable energy is being used to replace the hugely energy intensive use of

diesel in the desalination process on the island (see Section 3.5.4.2), Udaras na Gaeltachta

(2009) estimate that the turbines save approximately 2,480 tonnes per annum.

5.2.1.1 Potential for replication

The environmental benefits accrued by Eigg and Inis Meain could easily be replicated in

similar island communities. Replacing traditional diesel generators with community

48

Estimate made using the formula recommended by the Carbon Trust, accessible via: http://www.pfr.co.uk/pfr/3/Renewable-Energy/15/Wind-Power/64/How-Much-Carbon-Dioxide?/

http://www.pfr.co.uk/pfr/3/Renewable-Energy/15/Wind-Power/64/How-Much-Carbon-Dioxide?/

renewable energy initiatives and micro-renewable installations on off-grid islands can

significantly reduce an island’s carbon footprint.

On-grid islands can also achieve emissions reductions from renewable energy development

as the clean energy created can displace dirty-energy previously imported from the grid. In

addition, grid-connected peripheral islands often rely on back-up diesel generators to protect

against service faults during inclement weather. By installing renewable energy projects at

community and micro-level the requirement for back-up diesel generators diminishes and

there is a further reduction of carbon emissions from the island.

5.2.2 Electric vehicles (EVs) on the Aran Islands

On larger islands, or islands with reliable transport links with the mainland, there may be a

greater need for transport than on small islands. The Electric Vehicle (EV) pilot scheme on

the Aran Islands provides evidence for the potential for use of such vehicles in similar

communities. Through the use of domestic smart charger units the vehicles can be powered

primarily using renewable energy. At periods of low renewable energy intensity, electricity

form the main grid will provide back-up. The smart charger units and smart meters will be

able to accurately calculate the proportion of electricity from renewable sources that is being

used to power the vehicle and so a precise carbon footprint can be determined. SEAI, who are

overseeing the pilot scheme, say that while projecting the level of emissions from the EV

scheme is difficult due to uncertainty over the contribution of renewables to the grid supply,

it is anticipated that there will be an emissions reduction from island transport of between

60% and 100% (SEAI, 2010).


Initial indications from the three-year EV trial on the Aran Islands suggest that it has been a

success thus far. Due to the relatively low mileage requirements of vehicles on island

communities, EVs are ideal. While they don’t offer the same power and speed of traditional

fossil fuelled vehicles, the characteristics and physical size of small island communities

means that such features are not required. EVs currently have much greater potential on

island communities than on the mainland where access to charging facilities is an issue. Due

to the physical size of most rural island communities, EVs are never far from a charging

facility. Provision of financial incentives for the purchase of EVs for island-dwellers could

make this initiative a wide-spread success in rural island communities.

5.3 Economic and employment benefits

5.3.1 Economic benefits from community renewables

The economic benefits from the pursuit of a low-carbon development strategy are difficult to

quantify but on the whole seem to show significant potential for reduced energy costs for

island dwellers and opportunities for revenue earnings and enhanced economic opportunities

through the export of clean energy to the grid.

Gigha

In the case of Gigha, the community wind-turbines feed into the national grid, thus providing

a revenue stream from any excess energy produced that is not required by the island.

Proposals are currently in place for installation of a brand new 330kW turbine which, if the

appropriate grid infrastructure improvements were made, could yield revenue in the region of

£30,000 to £40,000 per annum for the Gigha Heritage Trust for use in other renewable energy

and energy efficiency initiatives.

Westray

The Westray Development Trust owned turbines have a much larger capacity than the small

turbines in place on Gigha. In the first twelve months of operation the turbines generated an

average monthly output of 255.25MW, which generated a sizeable amount of revenue for the

island’s Development Trust.


The village of Fintry in Stirlingshire, although not an island community, provides a new

approach to community involvement in renewable energy which could be replicated by island

communities and potentially yield significant revenues. When permission was sought by a

developer for a 14-turbine development, the Fintry Development Trust, instead of opposing

the plans, convinced the renewable energy developer to add an additional turbine for the

benefit of the village. Each year the developer keeps a proportion of the turbine revenue to

pay off the installation and maintenance costs of the turbine. Despite these costs, the turbine

has generated an average of approximately £30-50,000 a year in revenue since 2004. This

revenue is expected to reach £300,000 to £400,000 per annum when the costs of the turbine

have been paid off. This provides huge amounts of revenue for the Trust to invest in energy

efficiency measures that benefit the entire community.

While island communities have additional infrastructural costs to incur from improving

access to the grid, there is obvious potential for significant revenue to be earned from the

generation and export of clean renewable energy. This revenue can then be utilised to further

the goals and ambitions of the island’s sustainable development plans. There have already

been several examples of community-turbine initiatives being replicated in the Scottish Island

communities such as Eigg, Gigha and Westray.

The potential for replication on rural Irish Island communities is arguably even greater due to

the fact that most of the Irish islands are already connected to the mainland grid. The one

major drawback however, is the ownership structure of land on the Irish islands. As has been

highlighted in the case of Arainn Mhor in 3.1.4, the land areas with the greatest potential for

commercial renewable energy development are characterised by undivided commonage

which can have anything up to 200 owners. Achieving an agreement amongst all landowners

will be virtually impossible so unless the government can intervene in these cases using a

compulsory purchase order49

, replication of the community-turbine schemes on Irish islands

is, for the near-future at least, unlikely.

49

CPOs are often used in major infrastructural projects where the return to the state is deemed sufficiently large enough to force the land-owner into compliance.

5.3.2 Additional economic benefits from a low-carbon development strategy

Eigg

The pursuit of a sustainable development strategy in Eigg has provided additional economic

benefits to the island through the creation of much needed employment. The various

initiatives have created the following job opportunities:

The micro-grid supports four part-time maintenance jobs on the island.

Island dwelling construction workers continue to be employed at various stages

during the energy efficiency improvement measures that have been taking place on

the island.

The growth and harvesting of biomass on the island for use in domestic heating has

created several forestry jobs for residents.

A part time ‘green project manager’ post has also been created, which employs two

people on a job share basis.

There has also been a much wider economic gain by the island from having a reliable and

affordable electricity supply. This has enabled several new businesses to start up including

restaurants, shops, guest houses and self-catering accommodation. The growth of “eco-

tourism” has also brought additional revenues to the island’s citizens as an ever-increasing

number of visitors come to the island to learn about how Eigg is transforming its

development strategy to reduce its carbon footprint whilst enhancing socio-economic

opportunities for those living on the island.

Westray

On Westray, a grant from the Big Lottery Fund in 2007 provided specific funding for a part-

time project officer on fuel poverty. Although this only provides employment to one island-

dweller for one day per week, the work of the project officer in providing applicant

households with specialist advice on the types of grant funding available has created

additional employment for island contractors who have been responsible for bringing over 30

homes on Westray up to energy efficiency standards through installation of insulation and

other domestic improvements.

The Energy Action Westray Long Term Strategy and Action Plan (2009) emphasises that the

island’s peripheral location means that opportunities for economic diversification and growth

are rare. Agriculture, fishing and tourism are the core elements of the local economy but are

all perilously exposed to the rising cost of fossil fuels. Renewable energy offers a rare

opportunity to make use of to diversify and develop the island’s economy which will offer

our community a sustainable economic future (Energy Action Westray, 2009).

Aran Islands

At a domestic level, the projected fuel cost savings experienced by households participating

in the Electric Vehicle (EV) scheme are 80% per annum (Minister O’Cuiv, 2010). In the

current economic climate where disposable income is being stretched to the limit, such

savings at household level are considerable. The EV scheme can also help to provide

additional economic opportunities on the islands. The closure of the only fuel service-station

on Inis Mor in recent years has increased the logistical difficulties faced by indigenous island

industry and reduced the attractiveness of the island as a place to set up a business. The

availability of cheap, clean and reliable energy for use in EVs should go some way to

correcting this problem and may facilitate the creation of additional employment and

economic opportunities on the island.

5.4 Social benefits

Aran Islands

The water shortage on Inis Meain, as highlighted in section 3.5.4.2, created huge social issues

on the island. The absence of a reliable water supply made life extremely hard for the island

inhabitants and young families in particular were feeling forced to leave the island. The

installation of the wind-turbines on Inis Meain for use in the desalination process has helped

to provide 40% of the island’s potable water demands from this source. Naturally, this has

made life for the islanders much easier and makes the island a much more attractive

proposition for people looking to move to or for any commerce or industry wishing to create

employment on the island.

The Electric Vehicle (EV) trial on the islands has also provided a social benefit to the

participating households. In addition to the fuel cost savings of 80% associated with the cars,

the EVs provide a reliable mode of transport to the participating households, something

which has been unattainable on the islands since the closure of the fuel service-station on Inis

Mor in recent years. The reassurance of having a reliable mode of transport in case of

emergency has been one of the key benefits identified by households participating in the

scheme.

Eigg

The development of the micro-grid on Eigg in 2007 provided enhanced social benefits for the

island community. These social benefits include the provision of improved water treatment

facilities, the provision of a stable and affordable power supply and a reduction in the noise

pollution from diesel generators that had characterised energy generation on the island for the

previous few decades. Domestic life has also been made much more comfortable during the

winter months through improved insulation and domestic heating systems. All of these social

improvements have enhanced the quality of life for the island’s population and enhanced

Eigg’s attractiveness as a location for young families to move and set up a home.

Gigha

The social benefits from the sustainable development projects implemented in Gigha

incorporate many of the features mentioned in the previous island examples. The energy

efficiency improvements of domestic dwellings is perhaps the biggest achievement with 26

properties upgrading their energy rating from the lowest possible rating to achieving

acceptable standards. 18 new homes have also been built on the island and have incorporated

solar thermal heating, thus providing much more comfortable living conditions for island

dwellers.

The social benefits of the various initiatives on Gigha may be evident in the recent population

trends on the island. Since 2002 the island’s population has increased from 96, with only 6

children attending primary school on the island, to 156, with 22 children attending primary

school. The improved standard of housing and social conditions on the island has evidently

stimulated housing demand and boosted the island population which, as highlighted in the

Arainn Mhor and Westray Development Plans, is a necessity for the future of island

communities and their development.

CHAPTER 5

PART II:

SUMMARY TABLE OF SUCCESSFUL

CARBON REDUCING INITIATIVES

Initiative Type Currently used in Details of the initiative and potential for replication Direct assistance available

Solar Thermal System Inis Oir Gigha

At domestic level there is significant potential for replication. Solar thermal (solar water) systems use energy from the sun to heat water for use domestically. The system can work in tandem with a conventional boiler or immersion heater to make the water hotter if required or to provide hot water when solar energy is unavailable. The average cost for installation of a solar thermal system is around £4,80050. The Energy Savings Trust (UK) estimates that typical savings from a well-installed and properly used system are approximately £55 (€71.6251), and 230kg CO2, per year when replacing gas heating and £80 per year when replacing electric immersion heating. They also estimate that Typical carbon savings are around 230kgCO2/year when replacing gas and 510kgCO2/year when replacing electric immersion heating.

Ireland Through the Better Energy Homes Scheme, operated by SEAI, there are grants of up to €800 available for installation of solar thermal systems. Scotland In the UK, the Renewable Heat Premium Payment scheme has been extended and is currently open to applications. The maximum financial support available for solar thermal systems is £300.

Solar Photovoltaic (PV) Eigg Solar Photovoltaic (PV) systems capture energy from sunlight and convert it directly into electricity for use domestically or for exporting into the grid. At a domestic level, the size of an average system is in the region 3kWp (DECC, 2012a). According to an assessment52 undertaken by the UK in May 2012, installation of a 3kWp system will cost approximately £7,700. Such a system can generate in excess of 2,500 kWh of electricity per annum and can save approximately a tonne

Ireland Due to fiscal constraints in Ireland and the previous widespread uptake of REFIT assistance, Solar PV installations have been removed from the scheme. Scotland Solar PV systems that qualify for the

50

Information obtained from Energy Savings Trust website on 16th

August 2012: http://www.energysavingtrust.org.uk/Generate-your-own-energy/Financial-incentives/Renewable-Heat-Incentive-RHI 51

Exchange rate obtained from Irish Central Bank on 16th

August 2012 - €1 = £0.78195 52

Study carried out by the UK Department of Energy and Climate Change. Available online via: http://www.decc.gov.uk/assets/decc/11/meeting-energy-demand/renewable-energy/5381-solar-pv-cost-update.pdf

http://www.energysavingtrust.org.uk/Generate-your-own-energy/Financial-incentives/Renewable-Heat-Incentive-RHI

http://www.decc.gov.uk/assets/decc/11/meeting-energy-demand/renewable-energy/5381-solar-pv-cost-update.pdf

of CO2 per year. Financial savings have been estimated at approxiamtely £540 per annum (Energy Savings Trust, 2012).

Feed-In-Tariff scheme can generate savings of approximately £540 per annum (Energy Savings Trust, 2012). Electricity produced for domestic use by the Solar PV system will earn, depending on the system type, between 7.1p/kWh and 16p/kWh. Excess energy exported to the grid will earn the household an additional 4.5p/kWh. The Home Renewables Loan Scheme can provide loans of up to £2000 in Scotland to assist in the purchase and installation of domestic Solar PV systems.

Wind-turbines Aran Islands Gigha Eigg Westray Arainn Mhor53

Wind power is one of the foremost renewable energy initiatives in operation. Wind turbines harness the energy from the wind and transform it into electricity. Wind turbines can be installed at varying sizes and levels of capacity making them ideal for replication at domestic (micro) and community level. At domestic level, a typical micro system in a relatively exposed site can generate more electricity than is required domestically. Excess electricity can be exported to the grid. Domestic turbines range greatly in value:

- £2,000 for a wall-mounted 1kW turbine - £15,000 for a 2.5kW pole-mounted turbine - £25,500 for a 6kW pole-mounted system

The emissions saved and revenue earned from a domestic turbine obviously depends on the size of system installed but has been estimated at a saving of 5.2 tonnes of CO2 per

Ireland Under the REFIT scheme, energy created from wind turbines qualifies for a direct payment for energy produced. For windfarms or turbines meeting the “small wind” criteria (generating less than 5MW), the REFIT scheme pays €70.46 per MWh produced. Any development where output exceeds the 5MW threshold is entitled to a REFIT payment of €68.08 per MWh produced. The REFIT support comes in addition to the revenue earned from the sale of generated electricity to the grid.

53

Domestic turbine only

annum with revenue in the region of £3,200 generated. At community level, larger turbines can be used to generate much greater amounts of electricity to fuel entire communities and to earn additional revenue through the sale of excess energy to the grid (see Fintry case in 5.3.1.1). SEAI54 estimates in 2010 suggest that the capital costs for a 3MW turbine is in the region of €4.6 Million. This is consistent with the general estimated cost value for larger turbines of €1.5m (£1.17m55) per MW. The annual revenue associated with a 3MW turbine is estimated in the region €540,000 (£422,253) or €180,000 per MW.

Scotland There are several financial support structures for wind-turbine development in the UK. Through the Feed-In-Tariff (FIT) scheme, small scale renewable energy generators can receive revenue via two streams:

i) Generation tariff is a facility

whereby your energy supplier pays

you a set rate for each unit (or kWh)

of electricity you generate. Once

your system has been registered, the

tariff levels are guaranteed for the

period of the tariff (up to 20 years)

and are index-linked. The generation

tariff rates available range between

£0.358 per kWh for installations with

a capacity <1.5MW down to £0.049

per kWh for installations with a

capacity >5MW.

ii) Export tariff provides generators

with a further 5p/kWh from their

energy supplier for each unit

exported back to the electricity grid.

Thus any excess electricity generated

by your domestic system can be sold

to the grid at a guaranteed minimum

54

SEAI (2010) - Resource cost estimates for onshore wind: 2010 – 2050. http://www.seai.ie/uploadedfiles/FundedProgrammes/REResources20102020App3.pdf 55

Exchange rate correct as of 16th

August 2012 from Central Bank of Ireland: €1 = £0.78195

http://www.seai.ie/uploadedfiles/FundedProgrammes/REResources20102020App3.pdf

price.

Revenue is also available to wind-

power generators in Scotland via the

Renewable Obligation Certificate

(ROC) Scheme. As of 2011, the price

for a ROC56 was £51.48 (DECC,

2012b).

Electric Vehicles Aran Islands Electric Vehicles refer to both Battery Electric Vehicles (BEV) and Plug-in Hybrid Electric Vehicles (PHEV). EVs have very high direct fuel efficiency and offer average fuel cost savings of 80% to drivers57 in addition to the near zero-emissions from the car if it is charged using an appropriate renewable source. The greatest potential for use of EVs is on rural island communities. On many of these islands there is no access to fuel service stations and thus there is a reliance on very expensive imported transport fuel from the mainland. If developed in tandem with renewable energy installations, EVs can provide a cheap, reliable mode of transport for island communities. Some of the biggest concerns over EVs is in relation to accessing sufficient power to fuel drivers that clock up high mileage. For island communities this is not an issue as mileage is generally small and the vehicle will never be too far away from a charging facility.

Ireland The Department of Communications, Energy and Natural Resources (DCENR) approves grant support of up to €5,000 for the purchase of Battery Electric Vehicles (BEVs) and Plug-in Hybrid Electric Vehicles (PHEVs) available from 2011 to 2012. This grant support is in addition to the VRT relief of up to €5,000 for BEVs and VRT relief of up to €2,500 for PHEVs as included in the 2011 Finance Act. Scotland As of 2011, the Scottish Government provide a grant of £5,000 towards the purchase of low-carbon electric cars with emissions below 75g/km.

Hydro-Electric Power and Storage

Eigg Hydro power systems refer to systems that convert potential energy from water stored at height into kinetic

Ireland The generation of hydro-electricity in

56

One ROC granted to renewable energy generators per MW produced. 57

Figure from SEAI, 2012 available via: http://www.seai.ie/Grants/Electric_Vehicle_Grant_Scheme/I_am_a_consumer/Benefits_of_Buying_an_Electric_Vehicle/

http://www.seai.ie/Grants/Electric_Vehicle_Grant_Scheme/I_am_a_consumer/Benefits_of_Buying_an_Electric_Vehicle/

energy via a turbine, which is then used to generate electricity. The greater the height and the larger the volume of water that is available to flow through the turbine, the greater the amount of electricity that can be generated. Hydro power can also be used as a store of energy as in the case on Eigg. When there are large amounts of excess energy generated by the island’s wind turbines, it can be used to pump seawater up to artificial reservoirs where the water can be stored as potential energy. In periods of low output from the wind turbines this water can then be released and transferred into kinetic energy and ultimately electricity to make up for the shortfall. Successfully harnessing hydro-electric power heavily depends on the prevailing geography of the region in question. In areas where there is a large supply of water, and a sufficient high area where water could be stored in an artificial reservoir, then hydro power can be an invaluable energy creation and storage asset. If the topography of the region is very flat however, the returns from the hydro power installation would be inadequate to justify the level of investment required. There is restricted potential for replication of the Eigg and Muck hydro-schemes as the geographical characteristics required are not present in many small island communities. In addition, there are very large capital cost requirements involved in developing such a system and so until a time when sufficient revenue is generated by the community from other resources, justification of a hydro-scheme is difficult.

Ireland is covered by the REFIT scheme. Under the scheme, hydro-electric installations can receive €85.99 per MWh of electricity produced. Tax relief and the Accelerated Capital Allowance Scheme which allows firms to write off costs of specified energy efficient technologies and renewable energy technologies in their entirety in the first year of purchase, can also contribute significantly the promotion of hydro-electric installations. Scotland The CARES Loan Fund and the CARES Rural Business Fund can extend loan facilities to organisations wishing to implement a hydro-electric or hydro-storage scheme. The large capital cost requirement will usually require communities to also seek commercial loans. Depending on the size of the hydro-scheme, financial assistance may be available through the Feed-In-Tariff (FIT) scheme or, in the case of a sufficiently large installation, through the Renewable Obligation Certificate Scheme (ROC). The FIT

scheme provides a range of funding from £0.048 for installations with a capacity of 2MW-5MW, to £0.219 per kWh for installations with capacity <15kW.

Biomass Heating Aran Islands Eigg

Biomass heating systems burn wood pellets, chips or logs to provide warmth in a single room or to power central heating and hot water boilers. The systems can operate via the use of a stove which burns logs or pellets to heat an individual room and can be fitted with a back boiler to generate hot water, or a boiler which burns logs, pellets or chips and is directly connected to the central heating and hot water system. According to the Energy Savings Trust58 the capital costs involved in biomass heating varies between £4,300 for a pellet stove, £2,200 for a log stove and £11,500 for an automatically fed pellet boiler. If the biomass system replaces a traditional coal or electric fuelled heating system, the CO2 savings per annum could be in the region of 7.5 tonnes. The financial savings vary depending on what type of system the biomass installation is replacing but ranges from £100 a year if replacing a gas system to £580 per year if replacing an electric system.

Ireland The Rural Development Programme Fund, Udaras na Gaeltactha, the SEAI’s Better Energy Homes Scheme and the Bioeneergy Establishment Scheme all offer different types of assistance from grants for installation of biomass heating systems, to subsidies for farmers rezoning their land for use in the growing and harvesting of biomass fuels. Biomass energy systems are also covered by the REFIT scheme which pays €85.99 to generators per MWh produced. Scotland Under the UK’s Renewable Heat Premium Payment, a grant of up to £950 is available to applicants for the installation of a biomass boiler. The interest-free Home Renewable Loan Scheme can provide up to £10,000 for biomass heating systems.

58

Information obtained from Energy Savings Trust website: http://www.energysavingtrust.org.uk/Generate-your-own-energy/Wood-fuelled-heating/#costs

http://www.energysavingtrust.org.uk/Generate-your-own-energy/Wood-fuelled-heating/#costs

In addition, the Renewable Heat Incentive Scheme, due for launch in 2013 may provide a facility for the purchase by the grid of excess energy created by domestic biomass systems.

Domestic Insulation Aran Islands Gigha Eigg Westray Arainn Mhor

Buildings are responsible for approximately 40% of the energy used within the EU59. Thus maximising the efficiency of buildings is essential in the drive to reduce domestic CO2 emissions and spiralling home energy costs. Most of the measures required to upgrade the energy efficiency of homes can be implemented with minimal costs yet yield significant cost and emissions savings. See the examples from the Energy Savings Trust60 below: -Upgrading loft insulation from 100mm to the recommended 270mm costs between £100 and £350 yet offers an annual financial saving of around £25 and a reduction in annual domestic CO2 emissions of 110kg. -Cavity wall insulation can cost in the region of £100 - £350 but can yield annual savings of £135 and approximately 550kg of CO2. -Solid wall insulation can cost in the region of £5,500 - £13,000 but can offer annual savings of over £445 and 1.8tonnes of CO2. -Draft-proofing and the installation of double-glazed windows can provide savings of up to £150 per annum. The potential for replication of these basic domestic energy efficiency measures is huge. They are often

Ireland The SEAI’s Better Energy Homes Scheme provides direct cash grants to qualifying households wishing to undertake domestic certified energy efficiency improvements. The level of grants available include: -€200 for attic insulation -€250 for cavity wall insulation -up to €1800 for internal dry-lining -up to €3600 for external insulation -up to €800 for domestic heating system improvements -€50 towards a BER assessment. Community Based Organisations (CBOs) provides insulation and energy efficiency measures to disadvantage regions. The funding for this scheme is through local agencies and has been restricted in recent years but is still worth enquiring about.

59

EU Commission release, 26th

April 2012. Available online via: http://europa.eu/rapid/pressReleasesAction.do?reference=IP/12/411&format=HTML 60

Cavity wall insulation - http://www.energysavingtrust.org.uk/In-your-home/Roofs-floors-walls-and-windows/Cavity-wall-insulation Attic insulation - http://www.energysavingtrust.org.uk/In-your-home/Roofs-floors-walls-and-windows/Roof-and-loft-insulation

http://europa.eu/rapid/pressReleasesAction.do?reference=IP/12/411&format=HTML

http://www.energysavingtrust.org.uk/In-your-home/Roofs-floors-walls-and-windows/Cavity-wall-insulation

http://www.energysavingtrust.org.uk/In-your-home/Roofs-floors-walls-and-windows/Roof-and-loft-insulation

overlooked however due to lack of education and information available at household level. Thus the establishment of community advice networks advising on energy efficiency measures and the support structures available are essential for the success of such initiatives.

Scotland The Energy Assistance Package Scotland is a key initial step in the upgrading of domestic energy efficiency. The scheme offers a universal free home energy audit to identify potential savings that can be made in each applicant home. Free and discounted wall and attic insulation is provided by the Scottish Government through the Home Energy Scotland scheme. An additional £10,000 interest free loan is available to homes within Universal Home Insulation (UHIS) areas.

Smart Meters Aran Islands Eigg

Smart Meters are electricity and gas meters that record and display energy usage in real-time. The advantages of smart-meters are numerous but the most important is that it gives the consumer greater control over their energy consumption. By providing the consumer with real-time information on energy usage, they can amend their domestic behaviour in order to minimise energy usage and costs. SEAI propose to release a “rate-clock” to accompany smart-meters so that consumers can identify high-tariff periods (i.e. 17:00 – 19:00) and minimise energy usage during this period. The introduction of smart meters will also allow for accurate calculation and recording of electricity generated by householders from micro-generation technologies. This will mean that micro-generators will get paid for every unit of energy that they produce. The cost of smart-meter installation and maintenance is

Ireland Smart-meters are to be rolled out nationally to 80% of electricity customers by 2020 with no explicit costs for installation. Scotland Smart-meters are to be rolled out nationally to 80% of electricity customers by 2020 with no explicit costs for installation.

proposed to be covered by energy bills in the same manner that the cost of traditional meters is covered. The EU Energy Efficiency Directive, due to come into effect in October 2012 requires each Member State to roll-out electricity smart meters to 80% of customers by 2020. In Ireland, CER61 has stated that the rollout will commence in 2015 and be completed by 2019, while in the UK the roll-out is due to commence in 2014 and be completed by 201962. As this scheme is to be rolled out nationwide with costs to be covered by existing energy bills, grid-connected islands will reap the benefits from smart meters. For non-grid connected islands, the development of smart-grids will in most places be accompanied by a roll-out smart-meters and so replication of the electricity smart meter scheme is likely to occur in most communities by 2020.

61

Commission for Energy Regulation Decision Paper on the roll-out of smart-meters. Information available online via: http://www.cer.ie/en/information-centre-newsroom.aspx?article=1526e264-7bc6-4dad-ad04-547044b818d4 62

Energy Savings Trust – Smart Meters. Information available online via: http://www.energysavingtrust.org.uk/In-your-home/Your-energy-supply/Smart-meters

http://www.cer.ie/en/information-centre-newsroom.aspx?article=1526e264-7bc6-4dad-ad04-547044b818d4

http://www.cer.ie/en/information-centre-newsroom.aspx?article=1526e264-7bc6-4dad-ad04-547044b818d4

http://www.energysavingtrust.org.uk/In-your-home/Your-energy-supply/Smart-meters

5.5 Summary

This study has identified the huge potential that exists for rural islands through low-carbon

development strategies to help mitigate against the effects of climate change whilst

simultaneously extending a lifeline to these peripheral communities through the socio-

economic opportunities that the pursuit of green growth can bring.

The greatest barrier to replication of the low-carbon initiatives is evidently a lack of

education and awareness amongst island communities of the benefits of low-carbon

development strategies and the various levels of assistance that are available to assist

communities pursue such an approach. Other barriers, particularly regarding land-ownership

structures in Ireland, may be more difficult to overcome but I feel that if island communities

are sufficiently educated on the benefits of low-carbon development then such issues can be

overcome to achieve a collective goal.

As identified in my study, there are significant support structures in place that supports

renewable energy development and energy efficiency measures. If the full potential of green

growth is to be experienced however, this support must be supplemented with additional

resource investment by national and regional governments into the education of rural

communities of the merits of pursuing low-carbon development strategies. Governments

must identify that small island communities represent a test-tube where green growth

economic strategies can be implemented at microcosm level. Through the success of such

strategies at microcosm level, governments can hopefully refine their policies and apply them

at much larger levels in the future to help move the developed world to a low-carbon

development track.

Appendix A Questionnaire used in primary research stage of island study

Brian (Ben) McGonagle

MSc in Climate Change: Impacts and Mitigation

(Academic Year 2011-2012)

Dissertation working title

"Towards a zero-carbon microcosm economy: A case study of renewable energy and energy

efficiency initiatives on small rural islands off the Scottish and Irish coasts with the aim of identifying

the initiatives with the greatest potential for replication on similar island communities".

This is a questionnaire that I have developed to gain some background information on the

renewable energy/energy efficiency initiatives taking place on the various island communities that

my study will focus on. I appreciate that some information may be of a sensitive nature and so I

understand that some elements of the questionnaire may not be completed. I ask that you complete

the questionnaire as accurately as possible and would like to thank you for your time and support in

this project.

Instructions:

Answer questions 1-24 where applicable.

Any additional information that you feel may be important will be gratefully accepted.

Feel free to contact me regarding any issues you may have with my questions at:

[email protected]

Questionnaires can be returned to me via e-mail or if necessary postal arrangements can be made.

mailto:[email protected]

Island details:

1. Name of island

___________________________________________________________________________

2. Jurisdiction (e.g. Isle of Mull, Argyle and Bute, Scotland)

___________________________________________________________________________

3. Island population: _________

4. Physical size of island (in square-miles/kilometres): _________

5. Ownership of the island (e.g. Private, public, community-trust, etc.)

___________________________________________________________________________

Grid connection:

6. Is the island connected to the mainland grid or other islands?

Yes No

If yes, please provide some detail (Type of connection, connection capacity, etc.):

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

7. Are there any plans for improving the grid connection? (i.e. Long-term plan to export energy

to the mainland grid, plans to participate in a renewable energy grid (the ISLES project),

plans to implement a smart-grid network, etc.)

Yes No

If yes, please provide some detail:

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

Energy consumption:

8. If known, what is the annual level of energy consumption on the island?

___________________________________________________________________________

9. What contribution, if any, do the different fuel/energy sources provide to overall energy

supply?

Diesel: _____________

Gas: _____________

Coal/Peat: _____________

Biofuel: _____________

Solar: _____________

Hydro: _____________

Wind: _____________

Wave/Tidal: _____________

Other: _____________

10. If known, please provide details of the island’s energy consumption pattern (e.g. How much

of the energy consumed on the island is used by households, industry, transport, etc.)

Industry: _____________

Domestic-use: _____________

Transport: _____________

11. What is the per-unit cost of fuel on the island?

Electricity (per kWh/unit)

Diesel (per litre)

Petrol (per litre)

Gas (per kWh/unit)

Other

Renewable-Energy Strategy:

12. Is there an overall renewable energy and energy conservation strategy for the island or do

such considerations feature in any Island development-plan?

Yes No

If yes, please specify the aims of this strategy

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

13. Are the renewable energy/energy conservation measures part of a network of similar

initiatives or are have you any ties with similar projects on other islands?

Yes No

If yes, please give some details of this cooperation (i.e. Who is it with, what level of

cooperation exists, etc.)

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

Renewable Energy Projects:

14. Please provide the name and details of renewable energy projects that exist on the island

(first-one given as an example):

Transport:

15. Is the transport sector included in the islands “green” strategy?

Yes No

If yes, answer Question 16 and 17. If no, answer question 17.

16. Describe the measures that have been taken to reduce fossil fuel use in the transport sector:

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

17. What future plans, if any, are in place to promote a cleaner transport network on the island?

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

Energy-efficiency measures:

18. Is there an energy-efficiency programme in operation on the island?

Yes No

If yes, please give details of the programme and how it is implemented

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

20. What contribution are energy-efficiency measures making to the all over reduction of energy

use on the island? (i.e. Is there a tangible reduction in energy use as a result of these

measures?)

___________________________________________________________________________

_________________________________________________________________________

Finance:

21. How are the various renewable energy/energy efficiency measures on the island financed?

(i.e. Private, EU-grant aided, Scottish government support, Lottery funding, etc. First one

given as example)

22. Would any of the initiatives that have taken place been possible without external funding

assistance?

Yes No

23. Is the future renewable energy/energy efficiency development plan reliant on external

funding?

Yes No

24. Is the potential for the export of energy to gain a financial return a consideration going

forward?

Yes No

---------- END ----------

Thank you very much for your time and cooperation. The information from this questionnaire will be

treated with utmost care and consideration and will only be used in my dissertation submission with

your permission. Any additional information that you may feel relevant to my dissertation and which

you are willing to contribute would be gratefully accepted. I take this opportunity to thank you once

again and to wish you continued good wishes with your efforts.

Appendix B Case study: Samsø – Renewable Energy Island

Source: Danish Energy Agency, Amaliegade 44, 1256 Copenhagen K, Denmark.

Available online via: http://www.ens.dk/en-

us/info/news/factsheet/documents/samsoe170709.pdf%20engelsk.pdf

In November 1997, the island of Samsø, Denmark was designated as a Renewable Energy

Island and project Samsø Renewable Energy Island was launched the same year.

100% renewable energy in ten years:

The target set for project Samsø Renewable Energy Island was a 100% share of renewable

energy in ten years. In the area of heating supply, 60% of homes on Samsø were to have

district heating and the remaining 40% individual supply installations. Since 2003, Samsø has

been self-sufficient in energy. Project Renewable Island Samsø includes:

21 modern wind turbines

Four district heating installations running on straw

Samsø Energy Academy

Many privately owned installations based on geothermal heating, solar heating and

wood pellet boilers.

21 wind turbines:

The island boasts 11 1MW-wind turbines, with a total height of 77m, in three areas across the

island. The wind turbines were erected in 2000. Each turbine generates enough electricity to

meet the demand of 630 standard households, and the 11 turbines together produce more

electricity than the island’s total consumption. The turbines are connected to the electricity

grid in Jutland via transformer stations in the city of Vadstrup. The turbines transmit

electricity to the mainland when they produce more electricity than the island itself can

http://www.ens.dk/en-us/info/news/factsheet/documents/samsoe170709.pdf%20engelsk.pdf

http://www.ens.dk/en-us/info/news/factsheet/documents/samsoe170709.pdf%20engelsk.pdf

consume. When there is no wind, the island receives electricity from the mainland via the

same cable, but in net terms the island produces more electricity than it consumes.

A total of 28,000 MWh in an average year:

The total production of the 11 wind turbines in an average year is around 28,000 MWh.

When the large turbines were erected, five smaller turbines on the southern side of the island

were decommissioned. These had a total capacity of 445KW.

The total investment for the 11 wind turbines was DKK 66 million. Nine of the wind turbines

are owned by local farmers. The remaining wind turbines are owned by a local wind turbine

association. These turbines are divided into about 5,400 shares, owned by 450 people.

More energy than Samsø spends on transport:

In 2003, ten 103-metre-high offshore wind turbines were taken into operation south of

Samsø. The offshore wind turbines annually produce more energy than the island uses for

transport, including the three ferries. The municipality of Samsø has invested DKK 25

million in the procurement of five of the offshore wind turbines. The profit from excess

electricity production from offshore wind turbines is invested in new energy projects.

Four district heating plants on Samsø:

The district heating plant in Nordby/Mårup receives heat from 2500m2 solar panels and a

900kW wood chip-fired boiler. The plant is the only heating plant of its kind based on solar

panels and a wood chip-fired boiler. Tranebjerg district heating plant differs from the island’s

three other district heating plants in that it fires whole bales of straw. The plant was

established in 1993 and was the first district heating plant on Samsø. A total of 263 private

homes, commercial enterprises, housing associations and institutions are connected to the

district heating network. The straw boiler in the plant has an output of 3MW and total heating

consumption is around 9,500MWh annually. Ballen/Brundby district heating plant fires straw

and is the only plant on Samsø which is 100% owned by its users. The plant supplies 232

consumers in Ballen and Brundby and is located accordingly between these two towns. A

group of inhabitants from the two towns and Samsø Energiselskab (Samsø energy company)

jointly own the district heating plant.

The Danish Energy Agency has provided a DKK 2.5-million subsidy for construction of the

plant. The district heating plant in Onsbjerg is a straw-fired district heating plant with 76

households and institutions connected. The district heating system in Onsbjerg is different

from other installations on the island because it is a local private limited company.

Samsø Energy Academy:

Samsø Energy Academy officially opened in May 2007. The academy serves as a centre and

exhibition room for renewable energy and energy savings in Denmark. During the summer,

tourists can see an exhibition at the academy about the island’s efforts at becoming self-

sufficient in energy.

Energy Service gives free advice:

Samsø Energy Academy is also home to Energy Service Samsø which gives free advice to

Samsø islanders on insulation and replacement of oil boilers. The academy also arranges

exhibitions, workshops and corporate events for the more than 4,000 politicians, journalists,

students etc. from all over the world who each year visit Samsø to learn from Danish

experience and see the renewable energy island.

Large profits result in new subsidies:

Profits from electricity production from the five offshore wind turbines owned by Samsø

municipality have led to e.g. a subsidy of DKK 5 million to Samsø Energy Academy.

Privately owned plants for geothermal heating, solar heating and pellet boilers:

Today, an estimated 300 households in Samsø’s open countryside have invested in renewable

heating systems. Some have had solar panels installed on their roof which provide hot water

and serve as supplementary heating. Others have replaced their old oil boiler with a pellet

boiler, a masonry stove or another biomass-fired boiler. Finally, some have had the still more

popular heat pumps installed, either for geothermal heating or in the form of an air-to-air heat

pump.

Appendix C Examples of Life+ projects in Ireland

Source: EU Environment website

http://ec.europa.eu/environment/life/countries/documents/ireland_en_oct06.pdf

http://ec.europa.eu/environment/life/countries/documents/ireland_en_oct06.pdf

Appendix D Contact details for relevant organisations, sources of funding and island

development committees

Domestic Government and Agency contact details:

Ireland

Sustainable Energy Ireland (SEAI)

Telephone: +353 1 915 9702

E-mail: E-mail contact link available on website

Website: www.seai.ie

Department of Agriculture

Telephone: +353 1 607 2000


Website: www.agriculture.gov.ie

Department of Communications Energy and Natural Resources (DCENR)

Telephone: +353 1 678 2000

E-mail: [email protected]

Website: www.dcenr.gov.ie

Commission for Energy Regulation (CER)

Telephone: +353 1 4000 800


Website: www.cer.ie

UK

Department of Energy and Climate Change (DECC)

Telephone: +44 300 060 4000


Website: http://www.decc.gov.uk/

http://www.seai.ie/

http://www.agriculture.gov.ie/

http://www.dcenr.gov.ie/

http://www.cer.ie/


http://www.decc.gov.uk/

Scotland

Climate Change Unit, Scottish Government

Telephone: +44 131 244 7815


Website: http://www.scotland.gov.uk/Topics/Environment/climatechange/resource-

materials

Energy Savings Trust (Scotland)

Telephone: +44 800 512 012


Website: http://www.energysavingtrust.org.uk/scotland/

Highlands and Islands Enterprise

Telephone: +44 1463 234 171


Website: www.hie.co.uk

Funding programmes contact details:

Ireland

Contact SEAI (details above) regarding Better Energy Homes and domestic energy efficiency

funding applications:

http://www.seai.ie/Grants/Better_energy_homes/

Contact DCENR (details above) regarding REFIT funding applications:

http://www.dcenr.gov.ie/Energy/Sustainable+and+Renewable+Energy+Division/REFIT.htm

Contact Department of Agriculture (details above) regarding Bioenergy Establishment

scheme funding applications:

http://www.agriculture.gov.ie/farmingsectors/crops/bioenergyscheme/

Contact Energy Action Ireland for information on Community Based Organisations domestic

energy efficiency assistance:

Telephone: +353 1 454 5464


Website: http://www.energyaction.ie/

http://www.scotland.gov.uk/Topics/Environment/climatechange/resource-materials

http://www.scotland.gov.uk/Topics/Environment/climatechange/resource-materials

http://www.energysavingtrust.org.uk/scotland/

http://www.hie.co.uk/

http://www.seai.ie/Grants/Better_energy_homes/

http://www.dcenr.gov.ie/Energy/Sustainable+and+Renewable+Energy+Division/REFIT.htm

http://www.agriculture.gov.ie/farmingsectors/crops/bioenergyscheme/

http://www.energyaction.ie/

Scotland

Contact the Energy Savings Trust (details above) for information on the Renewable Heat

Energy Payment, Home Renewable Loan Scheme and Feed-in-Tariffs.

Application form for rates relief for renewable energy generators available on the Highland

Council website:

http://www.highland.gov.uk/businessinformation/nondomesticrates/reliefandremission/renew

able-energy-generation-relief-scheme.htm

Application for CARES loan and CARES rural development funding to be conducted through

the Community Energy Scotland website:

http://www.communityenergyscotland.org.uk/support/cares/cares_loan

Details on Renewable Energy Obligation Scheme (ROC) available from Ofgem:


Website:

http://www.ofgem.gov.uk/Sustainability/Environment/RenewablObl/Pages/Renewabl

Obl.aspx

Other programmes

Contact details for Northern Periphery Funding:

Mr.Michael O’Brien, Mrs.Denise Pirie,

BMW Regional Assembly, EU Manager,

The Square, Highlands and Islands Enterprise,

Ballaghaderreen, Cowan House,

Co.Roscommon, Inverness Retail and Business Park

Ireland. IV2 7GF Inverness, Scotland.

Tel: +353 94 9862 970 Tel: +44 1463 244252

E-mail: [email protected] E-mail: [email protected]

Website: http://www.bmwassembly.ie Website: http://www.hie.co.uk

http://www.highland.gov.uk/businessinformation/nondomesticrates/reliefandremission/renewable-energy-generation-relief-scheme.htm

http://www.highland.gov.uk/businessinformation/nondomesticrates/reliefandremission/renewable-energy-generation-relief-scheme.htm

http://www.communityenergyscotland.org.uk/support/cares/cares_loan


http://www.ofgem.gov.uk/Sustainability/Environment/RenewablObl/Pages/Renewabl%20Obl.aspx

http://www.ofgem.gov.uk/Sustainability/Environment/RenewablObl/Pages/Renewabl%20Obl.aspx

http://www.bmwassembly.ie/

http://www.hie.co.uk/

Island development committee contact details:

Arainn Mhor

Nóirín Uí Mhaoldomhnaigh,

Manager,

Arainn Mhor Cooperative,

Co.Donegal, Ireland.


The Aran Islands

Dara Ó Maoildhia,

Inis Mor Energy Committee,

Inis Mor,

Co.Galway, Ireland.


Eigg

Ian Leaver,

Development Co-ordinator,

Isle of Eigg Heritage Trust,

Eigg,

Highland Region, Scotland.




Gigha

Lukas Lehman,

Trust Manager/Development Manager,

Isle of Gigha Heritage Trust,

Isle of Gigha,

Argyll, Scotland.


Westray

Colin Risbridger,

Vice-chairman, Orkney Renewable Energy Forum,

Westray,

Orkney Islands, Scotland.




Appendix E Irish Government Programme for Government – Green jobs

Source: Available online through the Department of An Taoiseach’s website:

http://www.taoiseach.gov.ie/eng/Publications/Publications_Archive/Publications_2011/Progr

amme_for_Government_2011.pdf

The Irish Government’s Programme for Government as published in 2011 outline the

following green pledges:

We will double funding for home energy efficiency and renewable energy

programmes until the end of 2013, after which time these schemes will be ended.

After 2013, we will roll out a ‘pay as you save’ scheme to continue home energy

efficiency retrofitting work without recourse to public funding. We will explore the

use of funding options such as an Energy Efficiency Obligation on energy suppliers.

We will tender for a ‘pay as you save’ contract to insulate all public buildings in the

state, where the contractor provides the capital.

We will seek to establish Ireland as a renewable manufacturing hub to attract

international and domestic investment. We will also position Ireland as a leading

player in the global carbon market, and a centre of excellence in the management of

carbon.

We will facilitate the development of energy co-operatives to make it easier for

smallscale renewable energy providers to contribute to our renewables target.

http://www.taoiseach.gov.ie/eng/Publications/Publications_Archive/Publications_2011/Programme_for_Government_2011.pdf

http://www.taoiseach.gov.ie/eng/Publications/Publications_Archive/Publications_2011/Programme_for_Government_2011.pdf

Appendix F Arainn Mhor sustainable development goals

Source: Arainn Mhor Development Plan (2008)

Appendix G Elephant Grass on Bere Island

Jack O’Sullivan and his colleagues at the abalone farm on Bere island are currently

investigating the possibility of growing, harvesting and burning a type of elephant grass

known as micantus to reduce their heating bills. Abalone feeds on seaweed, collected at

spring tides once every two weeks. There is concern however of the danger in trying to

harvest seaweed in bad weather conditions. The solution is to dry it when it is available in

abundance and to store it for feed. The high cost of drying the seaweed could be covered by

generating heat and hot water through the burning of the grass.

This hybrid grass grows, without fertiliser, for twenty three years without needing to be

reseeded. Growing to a height of between ten and twelve feet, it is harvested once a year in

the Spring and yields up to eight tons per acre. Farmers would be paid €300 per acre and

would also qualify for organic REPS payments. The grass lives on CO2 and is therefore

neutral in terms of GHG. The energy generated by the burning of the grass would yield

sufficient hot water to heat homes nearby and the electricity generated could be fed back into

the national grid at a guaranteed price of 7.2c per KWh. Electricity could then be bought back

at about 6 cent per KWh, under a scheme aimed at encouraging the generation of green

energy.

Not only would the system save money for the fish farmers and residents alike, it would also

provide income for farmers in the production of a sustainable crop and would contribute to

the production of GHG neutral energy. The native Asian grass needs rain to thrive, a resource

which is in plentiful supply on Bere Island.

Source: Irish Islands Federation (2008)

http://www.oileain.ie/en/ComhdhailWork/NationalWork/RenewableEnergy/

http://www.oileain.ie/en/ComhdhailWork/NationalWork/RenewableEnergy/

Appendix H Examples of Community Renewable Projects in Ireland

Source: Rural Network Northern Ireland

http://www.ruralnetworkni.org.uk/download/files/pub_Comm%20Renew%20Energy%20RO

I.pdf

http://www.ruralnetworkni.org.uk/download/files/pub_Comm%20Renew%20Energy%20ROI.pdf

http://www.ruralnetworkni.org.uk/download/files/pub_Comm%20Renew%20Energy%20ROI.pdf

Documents

TOWARDS A ZERO-CARBON MICROCOSM ECONOMY: A CASE STUDY OF RENEWABLE ENERGY AND ENERGY EFFICIENCY INITIATIVES ON SMALL RURAL ISLANDS OFF THE SCOTTISH AND IRISH COASTS WITH THE AIM OF