Overcoming barriers to wind project finance in Australia

The wind power industry in Australia is expected to grow rapidly over the next decade, primarily due to a forthcoming expanded national renewable energy target (RET) which will mandate that renewable sources provide approximately 20% of Australia's electricity production by 2020. However, development of new wind generation in Australia has stalled as a result of several barriers to project finance, the mechanism through which most wind farms have been developed historically. This paper provides an overview of wind power financing in Australia in light of recent political and financial trends. Drawing upon existing literature and a series of stakeholder interviews, it identifies three primary barriers to project finance: regulatory risk surrounding legislation of the RET, semi-privatization of electricity retailers in New South Wales, and limited capital availability resulting from the recent global credit crisis. The paper concludes that the confluence of these barriers limits the availability of long-term contracts that provide revenue certainty for pre-construction wind projects, while simultaneously making these contracts a necessity in order to obtain project finance. In an attempt to mitigate these effects, this paper identifies four alternative development strategies that can be pursued.     

Scottish survey shows firm public support for wind

The Scottish Executive has announced the results of a recent survey that shows strong public support for wind farms. The survey of residents living around Scotland's ten existing wind farms found high levels of acceptance and overwhelming support for wind power, with support strongest amongst those who lived closest to the wind farms.This is a short news story only. Visit www.re-focus.net for the latest renewable energy industry news.     

The effectiveness of different policy regimes for promoting wind power: Experiences from the states

Governments at the state (and to a lesser extent, local) level in the United States have adopted an array of policies to promote wind and other types of “green” energy, including solar, geothermal, low-impact hydropower, and certain forms of biomass. However, because of different regulatory environments, energy resource endowments, political interests, and other factors, there is considerable variation among the states in their green power policies. This paper analyzes the contribution to wind power development of several state-level policies (renewable portfolio standards (RPS), fuel generation disclosure rules, mandatory green power options, and public benefits funds), along with retail choice (RET) facilitated by electricity restructuring. The empirical results support existing anecdotal and case studies in finding a positive relationship between RPS and wind power development. We also found that requiring electricity suppliers to provide green power options to customers is positively related to development of wind energy, while there is a negative relationship between wind energy development and RET (i.e., allowing retail customers to choose their electricity source).     

Australian renewable energy progress

With some of the world's best solar and wind resources, Australia is a prime market for solar and wind energy. The growing renewable energy industry can take advantage of Australia's stable economy, good access to grid infrastructure and well organised financial and legal services.Although development has been slower than what was anticipated, but with the promises made by the new government, the renewable community hopes for a brighter future for solar and wind energy in Australia.The objective of this paper is to present an overview of the current status of solar and wind energy in Australia, then to take a closer look at solar and wind potential, current activities, and finally to discusses about Australian Government support and to predict the future outlook of solar and wind energy.     

Landscape externalities from onshore wind power

The expansion of renewable energy is a central element of the German Federal Government's climate and energy policy. The target for 2020 is to produce 30% of the electricity from renewable energies. Wind power has been selected to be a major contributor to this change. Replacing old wind turbines by modern ones and building new turbines on land will be crucial in meeting this target. However, the expansion of onshore wind power is not universally accepted. In several regions of Germany residents are protesting against setting up new wind turbines. To determine the negative effects two choice experiments were applied in Westsachsen and Nordhessen, Germany. In both regions the externalities of wind power generation until 2020 based on today's state of technology were measured. The results show that negative landscape externalities would result from expanding wind power generation. Using latent class models three different groups of respondents experiencing different degrees of externalities were identified.     

Public acceptance of renewable energies: Results from case studies in Germany

This article addresses the public acceptance of certain renewable energies (grid-connected larger PV ground-installed systems, biomass plants and wind turbines) from a socio-scientific perspective. Using an environmental–psychological approach to investigate the social factors relevant to the formation of public acceptance towards renewable energies in four different regions, recommendations for the further implementation of renewable energy systems were to be derived. The present study has been conducted in a multi-modal research design combining a standardised questionnaire and qualitative interviews and focused on the residents’ views and perceptions. Especially within the quantitative analyses, the results indicate that economic consideration of the respective renewable energy system, understood as a positive cost–benefit calculation made by the individual, is the strongest predictor for a reported acceptance. Furthermore, the importance of landscape evaluation and a strong connection between procedural justice criteria, such as transparency, early and accurate information as well as possibilities to participate during the planning and installation process, and a reported public acceptance became evident. Qualitative data were analysed in reference to the grounded theory and showed the relevance of the operating company's commitment on the local level, participation of the general public and the choice of the location for the plant were among the relevant aspects for acceptance in the implementation process.     

Planning globally,protesting locally: Patterns in community perceptions towards the installation of wind farms

The evidence is compelling that extended use and production of energy are globally responsible for the serious deterioration of physical environment and climate change. The further penetration of renewable energy sources (RES) emerges as a crucial factor contributing to the mitigation of global warming. Within this framework wind energy is expected to have a leading role for Greece's compliance with the EU environmental targets of 2020. However, the installation of wind parks in specific regions with high wind potential is seriously constrained by the reaction of local communities. Using a survey the present research dissects public acceptance for existing and proposed wind farms in the region of Southern Evia, Greece. Results indicate an overall support for wind energy and confirm the growing inconvenience with NIMBYism, especially in areas with existing wind parks in operation, as a theoretical framework explaining resistance to planned wind energy investments. By contrasting self-reported ex ante- and ex post-perceptions of impacts and benefits we highlight the role of experience in community acceptance of wind energy installations. Our statistical models prescribe the profile of those most probably in favour of existing installations, new installations in other parts of Evia or new installations elsewhere in Greece. Finally, we introduce the ‘Not-In-My-Front-Yard’ (NIMFY) syndrome suggesting that the impact of visibility on public acceptance is far from being a simple concept as it is linked to both a physical landscape context and socio-economic parameters.     

Braking wind in Australia: A critical evaluation of the renewable energy target

This paper provides a critical evaluation of Australia’s new Renewable Energy Target (RET) program with respect to its capacity to support wind power development. Four structural flaws associated with the RET which undermine its effectiveness as a catalyst for technological change in the electricity sector are discussed: (i) the inclusion of waste coal mine gas (WCMG) as an eligible fuel source which acts as an indirect coal industry subsidy, (ii) program duration which is too short and ill-structured, (iii) a multiplier that is well-intended to support small-scale renewable technologies but which creates “phantom capacity”, and (iv) the capped target of 45,000 GWh which will stymie long-term wind power market investment. The paper concludes with recommendations which stress the importance of passing effective Carbon Pollution Renewable Scheme (CPRS) legislation to offset the weaknesses associated with the RET. If an effective CPRS cannot be implemented, the paper recommends that amendments be made to the RET to (i) remove WCMG from the list of approved alternative energy sources, and (ii) extend the RET targets to reach 120,000 GWh by 2030.     

Financing investments in renewable energy : the impacts of policy design

The costs of electric power projects utilizing renewable energy technologies (RETs) are highly sensitive to financing terms. Consequently, as the electricity industry is restructured and new renewables policies are created, it is important for policymakers to consider the impacts of renewables policy design on RET financing. This paper reviews the power plant financing process for renewable energy projects, estimates the impact of financing terms on levelized energy costs, and provides insights to policymakers on the important nexus between renewables policy design and financing. We review five case studies of renewable energy policies, and find that one of the key reasons that RET policies are not more effective is that project development and financing processes are frequently ignored or misunderstood when designing and implementing renewable energy policies. The case studies specifically show that policies that do not provide long-term stability or that have negative secondary impacts on investment decisions will increase financing costs, sometimes dramatically reducing the effectiveness of the program. Within U.S. electricity restructuring proceedings, new renewable energy policies are being created, and restructuring itself is changing the way RETs are financed. As these new policies are created and implemented, it is essential that policymakers acknowledge the financing difficulties faced by renewables developers and pay special attention to the impacts of renewables policy design on financing. As shown in this paper, a renewables policy that is carefully designed can reduce renewable energy costs dramatically by providing revenue certainty that will, in turn, reduce financing risk premiums.     

Current utilization and future prospects of emerging renewable energy applications in Canada

Canada has vast renewable energy resources due to its extensive geography and traditionally they have played an important role, particularly prior to the turn of the 20th century. Public interest in new renewable energy technologies (RETs) emerged and grew during the oil shocks of the 1970s and early 1980s. Even though many Canadian provinces had been deriving most of their electricity from hydroelectric power, the first oil crises of the 1970s ignited a strong interest in all forms of renewable energy. Though Canada has huge prospects for low-impact RETs, it is falling behind most industrialized nations in the expansion of these technologies due to a lack of supporting market structures and the absence of appropriate government policies and initiatives. This review focuses on only applications of low-impact emerging RETs that refer to wind, solar, small hydro, geothermal, marine and modern biomass energy. Today, these technologies are mostly in the dissemination, demonstration and early stage of commercialization phase in Canada and currently they contribute less than 1% of the total primary energy consumption. It is evident from the past experience of Europe and Japan that environmentally benign RETs can contribute significantly toward Canada’s Kyoto target of reducing greenhouse gas emissions by displacing the use of conventional fossil fuels, and help Canada take an essential step toward a sustainable energy future. In this paper, the current energy utilization scenario of Canada has been analyzed and an array of emerging RET applications has been presented under the category of: (i) green power technologies; (ii) green heat technologies; and (iii) green fuel technologies.     

On the physics of power,energy and economics of renewable electric energy sources - Part II

Renewable Energy Technologies (RETs) are often recognized as less competitive than traditional electric energy conversion systems. Obstacles with renewable electric energy conversion systems are often referred to the intermittency of the energy sources [1] and the relatively high maintenance cost. However, due to an intensified discourse on climate change and its effects, it has from a societal point of view, become more desirable to adopt and install CO₂ neutral power plants. Even if this has increased the competitiveness of RETs in a political sense, the new goals for RET installations must also be met with economical viability. We propose that the direction of technical development, as well as the chosen technology in new installations, should not primarily be determined by policies, but by the basic physical properties of the energy source and the associated potential for inexpensive energy production. This potential is the basic entity that drives the payback of the investment of a specific RET power plant. With regard to this, we argue that the total electric energy conversion system must be considered if effective power production is to be achieved, with focus on the possible number of full loading hours and the Degree of Utilization [2]. This will increase the cost efficiency and economical competitiveness of RET investments, and could enhance faster diffusion of new innovations and installations without over-optimistic subsidies. This paper elaborates on the overall problem of the economy of renewable electric energy conversion systems by studying the interface between physics, engineering and economy reported for RET power plants in different scientific publications. The core objective is to show the practical use of the Degree of Utilization and how the concept is crucial for the design and economical optimization disregarding subsidies. The results clearly indicate that the future political regulative frameworks should consider the choice of renewable energy source since this strongly affects the economical output from the RET power plants.     

The spectrum of power from wind turbines

The power spectral density of the output of wind turbines provides information on the character of fluctuations in turbine output. Here both 1-second and 1-hour samples are used to estimate the power spectrum of several wind farms. The measured output power is found to follow a Kolmogorov spectrum over more than four orders of magnitude, from 30 s to 2.6 days. This result is in sharp contrast to the only previous study covering long time periods, published 50 years ago. The spectrum defines the character of fill-in power that must be provided to compensate for wind's fluctuations when wind is deployed at large scale. Installing enough linear ramp rate generation (such as a gas generator) to fill in fast fluctuations with amplitudes of 1% of the maximum fluctuation would oversize the fill-in generation capacity by a factor of two for slower fluctuations, greatly increasing capital costs. A wind system that incorporates batteries, fuel cells, supercapacitors, or other fast-ramp-rate energy storage systems would match fluctuations much better, and can provide an economic route for deployment of energy storage systems when renewable portfolio standards require large amounts of intermittent renewable generating sources.     

Study on electrical energy and prospective electricity generation from renewable sources in Australia

Nowadays renewable sources are being used as clean sources to generate electricity and to reduce the dependency on fossil fuels. The uses of renewable sources are being increased in electricity generation and contributed to reduce the greenhouse gas emission. The function of any electrical power system is to connect everyone sufficiently, clean electric power anywhere and anytime of the country. This can be achieved through a modern power system by integrating electrical energy from clean renewable sources into the nation's electric grid to enhance reliability, efficiency and security of the power system. The paper on the status of review the driving force of the generation of renewable energy and proposing electrical energy generation from renewable sources to be ensured at least 20% of total energy of Australia. This paper has been studied the existing electricity generation capacity of Australia from renewable and non-renewable sources. Optimal electricity generation from renewable sources has been examined. The environmental impact of electricity generation from renewable sources has been considered. Under this paper the yearly average wind data of past 20 years and above for some meteorological stations of Australia have been used. The prospective electricity generation from wind turbines and solar photovoltaic panels has been proposed in the paper that will increase electrical energy of the power grid of Australia. It was estimated the capital cost of prospective electricity generation farms from wind and solar PV sources.     

Wind farm electrical power production model for load flow analysis

The importance of renewable energy increases in activities relating to new forms of managing and operating electrical power: especially wind power. Wind generation is increasing its share in the electricity generation portfolios of many countries. Wind power production in Spain has doubled over the past four years and has reached 20 GW. One of the greatest problems facing wind farms is that the electrical power generated depends on the variable characteristics of the wind. To become competitive in a liberalized market, the reliability of wind energy must be guaranteed. Good local wind forecasts are therefore essential for the accurate prediction of generation levels for each moment of the day.This paper proposes an electrical power production model for wind farms based on a new method that produces correlated wind speeds for various wind farms. This method enables a reliable evaluation of the impact of new wind farms on the high-voltage distribution grid.     

The rise of community wind power in Japan: Enhanced acceptance through social innovation

The purpose of this paper is to analyze the socio-economic dynamics that are brought about by renewable energy technologies. We call this dynamic “Social Innovation” as it changes the rules of risk–benefit distribution and the roles of social actors. For this purpose, we take up a typical case in Japan, community wind power in which the initial cost is funded by the investment of citizens. Through this case study, we examine how the citizens’ initiative can affect the social acceptance of renewable energy as well as social change. Based on interviews with those involved in these projects, we analyze the interests of the various actors involved in community wind power projects in a framework of “actor network theory”, which enables us to understand the detail of each actor's position. This study also involved a quantitative survey of investors. The case study clarified that there was a remarkable difference in the interests of the main actors in the community wind power projects, the networks are complex and actors share various interests such as economic interests and a sense of social commitment, participation and contribution. These incentives are also clarified in quantitative data. However, the variety of incentives differs in each project.     

Offshore wind energy policy for India—Key factors to be considered

Indian Economy is growing at a healthy pace during the last few years. To sustain this growth, power sector needs to build additional generation capacity. However, continued dependence on fossil fuels to power the growth of electricity generation capacity, is hardly sustainable. Renewable Energy source forms a miniscule portion (25 GW,∼12%) of India's overall power generation today (202 GW). The share of wind energy (17 GW) is 67% of the total renewable energy basket. But the contribution from offshore wind farms is non-existent, as all the wind energy generated in India is only through onshore wind farms. India needs a policy framework to encourage the development of offshore wind farms. Several European countries have effective offshore wind energy policies that have helped them to accelerate the growth of their offshore wind energy sector. This paper does an exhaustive literature survey, to identify 21 building blocks of a successful offshore wind energy policy initiative adopted by select European countries, which have been classified under 5 broad categories—Government support, Fiscal and quota based incentives, Availability of local expertise, Capital for investments and Building an enabling ecosystem, which can be leveraged by India to articulate its own offshore wind energy policy.     

Environmental issues associated with wind energy – A review

Recognized as one of the most mature renewable energy technologies, wind energy has been developing rapidly in recent years. Many countries have shown interest in utilizing wind power, but they are concerned about the environmental impacts of the wind farms. The continuous growth of the wind energy industry in many parts of the world, especially in some developing countries and ecologically vulnerable regions, necessitates a comprehensive understanding of wind farm induced environmental impacts. The environmental issues caused by wind farms were reviewed in this paper by summarizing existing studies. Available mitigation measures to minimize these adverse environmental impacts were discussed in this document. The intention of this paper is to provide state-of-the-art knowledge about environmental issues associated with wind energy development as well as strategies to mitigate environmental impacts to wind energy planners and developers.     

Economic analysis of reactive power compensation in a wind farm: Influence of Spanish energy policy

Presently, renewable energies and especially wind energy are gaining a special relevance in the electrical market worldwide. This current rate of growth brings with it the need for the various wind farms to not limit themselves to producing energy but also provide stability to the network within its capabilities. So, the actual objective is to adapt the installations that produce wind energy in such a way that they give a maximum amount of support in any given moment to the electrical network. For this purpose, there are governing techno-economic parameters that influence the economic behavior of commercial wind farms. A complete cost-benefit analysis model is developed, focused on incorporating automatic capacitor banks into wind farms for the compensation of reactive power. This economic analysis is about doubly fed induction generator (DFIG) wind turbines. Although this kind of wind turbines have a certain capability in terms of modulating reactive power, this capacity is not enough to achieve the new requirements of reactive power regulation in Spain and it is necessary to invest in systems of external compensation.In this paper, we have studied the case of DFIG wind turbine and capacitor banks, although the used methodology can be applied to other technologies as well by simply amplifying the algorithms according to the specific characteristics of the option elected. Following this premise, a detailed analysis of the specific needs of a wind farm has been carried out, as well as a search for the optimum performance for the compensation of reactive power.     

Decarbonising power generation in China—Is the answer blowing in the wind?

This paper examines the current situation of wind industry development, evaluates the potentials of GHG mitigation and identifies the key determinants of scaling up wind power deployment in China. China has doubled its wind capacity every year for the past 4 years, the total installed capacity reached 12 Gigawatts (GW) and surpassed the 10-GW target 2 years ahead of schedule in the national plan for renewable energy development [38], [71], [87],and would reach 100–120 GW by 2020 according to the government’s new energy plan. It may become the biggest wind power generation and wind turbines manufacturing country of the world in the next years if the abundant wind resources and enormous domestic market can be harnessed with appropriate policies and efficient technology. The recent positive move in vigorous development of wind power in China implies that the total installed capacity will far exceed the targets of the government’s 2007 renewable energy plan. However, the prosperous Chinese wind market has also revealed some worrisome signals and weakness [28], [58], such as low capacity factor and frequent outage of wind farms, inadequate grid infrastructure, long distance transmission, low quality of turbines, adverse price bidding, nepotism in wind farm developer selection process and regulatory uncertainty and policy inconsistency which all conspire to hinder effective power generation in the massively new installed wind capacities. A coherent policy framework is required for creating enabling environment for accelerating wind energy penetration and state-of-art technology deployment in the country. It is argued that institutional, financial and technical capacity will need to be cemented to exploit the huge potentials of wind resources to meet the rapidly growing demand for electricity in China in the coming decades with minimised environmental implications.     

Conceptualizing the acceptance of wind and solar electricity

Drawing from research interviews and the academic literature, this article conceptualizes the conditions that promote investor confidence and the social acceptance of wind and solar sources of electricity. It explores the factors influencing the acceptance of commercial wind turbines in Denmark and India and residential solar panels in Germany and the United States. The article begins by justifying its selection of case studies and explaining the methodology behind its research interviews and field visits. It then summarizes some of the key findings in recent surveys of public attitudes and market acceptance concerning renewable energy, with a focus on why some investors and communities reject wind and solar systems whereas others rapidly approve and adopt them. The article proposes that acceptance has multiple dimensions – socio-political, community, and market – that must be met holistically in order for investors and users to embrace renewable energy. The article argues that acceptance hinges upon the prevalence of nine factors; the lack of such factors creates environments where they are rejected. The theory is tested against four case studies that explore the forces driving renewable energy in Denmark, Germany, India, and the United States.