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Feed In Tariff for Microgenerators (Read 2180 times)
quentingargan
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Feed In Tariff for Microgenerators
Dec 15th, 2008, 8:32pm
 
We have for a long time wanted to see a feed-in tariff for people who generate electricity on-site and want to sell their surplus to the grid. ESB Customer Services has today proposed an interim tariff for microgenerators up to 11kw of 9 cents per kw hr.

The Commissioner for Energy Regulation has invited submissions from the public. You can read about the CER request for submission and make a submission at http://www.cer.ie/en/electricity-retail-market-current-consultations.aspx?articl...

In making a submission, you might like to know that in many parts of the UK, the feed-in tariff is 10p sterling per KwHr and that a further 4p is paid for Renewable Obligations Certificates (ROCs) whereby the carbon credited is purchased for all energy produced by the wind turbine (including electricity used by the customers themselves).

By comparison, 9 cents is a pretty derisory offer but it is possible that if enough applications are received, then the CER will increase this figure.

So lets try to persuade the CER that 9 cents is not a reasonable price to pay for microgenerators. Supporting arguments include that;

  • This is only slightly higher than the 7.5c rate paid to large wind farms
  • There is already a 12c feed-in tariff for offshore power. Micro generators should be regarded as an early-stage technology and supported in the same way
  • Unlike wind farms and other generation systems, micro-generators do not create a requirement to expand the grid because their electricity is produced and used locally.
  • Ireland could be a leading innovator in micro wind power, but there must be attractive feed-in tariffs to support this.
  • Other countries such as Spain and Germany pay as much as 45c to 50c per kw hr for electricity to support the development of solar photovoltaic or other industries.
  • Any other arguments you might have in favour.

The announcement by ESB is a move in the right direction Roll Eyes, but I believe this offer could be and should be improved on if small scale domestic and hydro power is to catch on in Ireland.

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Re: Feed In Tariff for Microgenerators
Reply #1 - Dec 17th, 2008, 7:20pm
 
Very interested to read this post, I am surprised that the ESB is even entertaining the notion of paying for microgenerators spilling  power back onto the network in excess of their domestic use.

I would be glad to hear how anyone on this tariff is getting on actually receiving a credit on their bill from the ESB, for power spilled, or how
easy it is to get a smart meter installed?

Regards
wanabee microgenerator
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Re: Feed In Tariff for Microgenerators
Reply #2 - Dec 17th, 2008, 9:55pm
 
Some other thoughts on feed in tariff of 9 cent a unit

1 - the rate of 12cent/kWhr is also avail for biomass CHP power generation

2 - the proposed rate of 9 cent / unit sounds not bad for a start off, considering upto now the rate was zero

3 - is it valid to look at the proposed rate in the following context - I am on a rural nightsaver domestic tariff where a rate of 17.06 cent a unit during days and 8.44 cent at night 23.00-08.00. If I put a windturbine up and put up some units onto the network, then the
probability is that this will be done mostly at nights because  a) it is more windy at night and b) domestic use is lowest, then the rate of 9 cent is in excess of what the ESB is charging for me to use its power.

Anyway, the point being there needs to be a good argument for the CER to direct the ESB to increase the feed in tariff for microgenrators
as I am guessing that the ESB being a business, will come up up with some good reasons why it shouldn't. The sole responsibility for promoting domestic microgen does not rest with the ESB - surely SEI have a role to play, considering all the grants they provided for REHEAT program, ie for pellet boilers/solar heating etc.
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Re: Feed In Tariff for Microgenerators
Reply #3 - Dec 17th, 2008, 11:17pm
 
THis rate is an interim one from the ESB. As smart metering comes in, we may end up with a multi-tier pricing which would encourage people to manage their consumption a bit better by switching on discretionary loads at night (washing machine, dishwasher etc.)

However, there are a lot of houses empty during the daytime when industry is paying full whack for power.

But there is another question - why should renewables have to compete on purely financial terms with other systems that cause climate change and which we hace to change in the long term?

Also, is there some merit is promoting an industry? Ireland has missed the boat on  being a centre of excellence for large scale wind. Solar PV is dominated by Germany and Spain, wood pellets are dominated by Austria.

Is there a niche here that Ireland could excel in? We have a high percentage of one-off houses and good wind conditions. As such, we might be an ideal launch pad for a domestic wind turbine industry.

Declaration of interest - I am developing http://turbotricity.com- an Irish turbine which I hope will have export potential. Its a business, but it is also a passion and something I think should be done. It would help if we had a half-decent tariff in our home market....
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Re: Feed In Tariff for Microgenerators
Reply #4 - Dec 18th, 2008, 9:56am
 
Q
I hope I don't sound like a rep for ESB, obviously I would be pleased to see the feed in rate increased above the 9 cent mark proposed, as I hope to go down this road in the future & I guess I am just maybe giving part of a counter argument - forewarned is forearmed, as they say

two more thoughts on this subject

1) I am interested in the financing of the feed in tariff offered by the ESB, as I am sure you know already, the rate offered to commercial onshore wind farms (7.5 cent a unit) is given in the form of a price support (REFIT), which is to say the wind farms are paid by the SEM the same as a gas or oil fired generator - the ex Ante SMP for the half hour in question, this amount is then topped up to the 7.5 cent by the operators of the REFIT scheme which is the Dept of Comm, Marine & Energy

2) getting back to the rate of 9 cent for micro vs 7.2 cent for wind farms, again as I am sure you know, there is a mile long queue (?) of investors looking to build wind farms on the basis of getting 7.2 cent a unit - (Gate 2 & Gate 3 procedure)
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Re: Feed In Tariff for Microgenerators
Reply #5 - Dec 18th, 2008, 5:36pm
 
I just had a chance to read the letter from ESB CS on the CER website. Before the ESB will enter into a contract to offer you 9 cent a unit the customer must enter into an "appropriate agreeement with the DSO" to export electricity onto the grid. This is in Appendix 1 of the ESB CS letter - proposed T&C for ESB microgenerator contract - I wonder what this involves - it is sure to be interesting - any current microgenerators have any experience ?
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Re: Feed In Tariff for Microgenerators
Reply #6 - Dec 18th, 2008, 7:27pm
 
I don't know if there are plans to change the current standard. ESB has standards for islanding, grid quality etc that are a bit more stringent than other EU countries, but not impossible for most inverter manufacturers.

You can find these guidelines at http://www.esb.ie/esbnetworks/downloads/microgen.pdf.

You can download the form to apply to be a microgenerator by clicking on www.esb.ie/esbnetworks/downloads/form_nc6.pdf

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Re: Feed In Tariff for Microgenerators
Reply #7 - Dec 28th, 2008, 2:13pm
 
Hi there,Ive just erected a  5KW turbine, 9c sounds like a  good place to start
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Re: Feed In Tariff for Microgenerators
Reply #8 - Dec 29th, 2008, 10:49pm
 
Best of luck with the new unit, have you any track on kWhr produced?
Have you gone about trying to avail of this new proposed tariff - I think getting a Smart electricity meter installed to register exported units is a precursor to availing of this tariff. It would be interesting to hear how you get on?
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Re: Feed In Tariff for Microgenerators
Reply #9 - Dec 30th, 2008, 10:44am
 
Actually, I think getting listed with ESB as a microgenerator has to happen first, independently of smart meters. Preference in the distribution of smart meters is then being given to people who have registered as micro-generators.

The 9c rate is only proposed by ESB. The Commissioner for Energy Regulation may increase or decrease this payment at the end of their "consultation period" which ends on Jan 16th. It may well be increased above 9c, but there is no implementation date that I know of as yet.

Slane Paul, good luck with that machine. What make is it? Is it a Chinese model? If so and you are using guy wires, be sure to take it down each year and check the guy wires and grease them. That has been a common cause of failure so far...  Q

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Re: Feed In Tariff for Microgenerators
Reply #10 - Dec 31st, 2008, 9:58am
 
Hi there.I have been approved by the ESB.Ive an import/export meter,My tower has no guy wires, and I have a hinge half way up where I can easily take it down for service.There has been little wind since I put it up a week ago, butt I have been logging what its been producing, not alot at presnet only about 40 KW to date.
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Re: Feed In Tariff for Microgenerators
Reply #11 - Dec 31st, 2008, 10:16am
 
40kW for the week that was in it sounds reasonable. Obviously, you need a fw months before any pattern can be discerned.

Keep us posted.
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Re: Feed In Tariff for Microgenerators
Reply #12 - Feb 8th, 2009, 11:14pm
 
I was in touch with CER a couple of weeks ago. They said that they hoped to have a decision on the feed in tariff within two weeks. That's tomorrow!

If they leave the tariff at 9c, many turbines will have a long payback time unless the site is ideal. An opportunity to build industries in this sector will be lost. So here's hoping....

You can read our submission here http://turbotricity.com/wp-content/uploads/cer-submission-on-feed-in-tariff.pdf
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Re: Feed In Tariff for Microgenerators
Reply #13 - Feb 20th, 2009, 9:00pm
 
The decision is out folks. 9c it is. For now at least. You can read the CER response at http://turbotricity.com/wp-content/uploads/cerresponse.pdf

Twice in this document, CER says;

"The development of a long term investment policy and any premium/support is a matter for Government policy and is outside the Commission’s remit. "

From the outset, this was described as an interim tariff. I would have hope that it could be increased, though this may happen as part of the smart meter rollout, to encourage microgenerators to do a bit of demand side management and use their own off-peak power.

After all, wind turbines running at night will sell electricity to the ESB for 9c, who then sell it to your neighbour for 7c, while wind farms are being curtailed.

But a higher tariff would have made wind turbines viable on more and more sites. We live in hope.... :~p
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