GRA said:
From the lessons section of the analysis linked in the preceding post [my emphasis]:
Thanks for finding this article. Several of the items in the article struck me:
This is the big one:
The initial investment for the off-grid system in the island was £1.66 million (that turns out to investment above £44,000 per resident). Clearly, mobilising such an investment is not a mean task. For this island, the funding came from various sources with residents contributing about 6% of the cost.
So the islanders managed to pay 94% of the system costs using other people's money, thus allowing them to lower their COE to around £0.20/kWh plus a monthly connection fee. It appears that they also enjoy a FIT on top of the initial investment, something which is no longer available under current laws.
This leads to a couple of likely conclusions:
1) It is VERY unlikely that this system would have ever been built had the beneficiaries been required to bear the entire cost of the system.
2) This system is now seven years old and things are going to begin to fail. I wonder if the residents will be able to maintain their supply of electricity in the case of a failure of one or two major subsystems. Some parts of the system will undoubtedly last for a very long time, such as the distribution system, the PV modules and the hydroelectric generators, but the batteries, wind generators and the inverters are likely already in the second half of their lives. When these items start to fail and need replacement, the residents will need to pay more in order to handle the expenses.
Regarding operational issues:
3) Hopefully the four banks of batteries are being operated in a manner which will cause them to fail at different times, perhaps spaced two years apart. That will allow them to operate without the failed bank of batteries and inverters for a period of time necessary to procure and install appropriate replacements.
4) I expect that 6kW wind generators will have an average life of about 10 years, if not less. Hopefully those failures will be spaced apart by at least a year to allow the residents to arrange for and pay for appropriate replacements.
Finally, I will note that the expenditure of £44,000/person on this Island has allowed the reduction of their overall fossil-fuel consumption by 20%. I'll take an educated guess where the rest of the fossil fuels are consumed:
10% Water Heating
20% Transportation
40% Space Heating
It is likely that all of these needs could be met by renewable energy (boating fuel may be an exception), but I suspect that would require a system 2.5X to 3X the capacity of the current system. BEV charging would need to be spread over the available power curve of the renewable genrators and many of those online batteries could provide for the needs of the community during times of low renewable generation, particularly if BEVs with oversized batteries are purchased. Water heating coud be done using heat pumps, at least during the warmer portions of the year. Likewise, space heating could be done using heat pumps.
Such a change would require total per-person capital investment (assuming existing system did not exist) of approximately:
- £120,000 for electricity system
- £20,000 for BEVs (one for each pair of residents, on average)
- £5,000 for home heat pumps (one for each pair of residents)
- £500 for heat-pump water heaters (one for each pair of residents)
The bottom line then (very roughly) comes to a cost of approximately £150,000/resident to move an island such as this to nearly 100% renewable energy. Assuming the capital is available via a low-onterest loan, does that represent an increase in the total cost of energy for the residents? I would gues yes, given that they would be making all of the capital expenditures all at once rather than in the past. By how much? It's hard to say. I'll guess 3X, but perhaps it's only 2X (above their already-high energy costs).
What will be interesting to see is whether, going forward, the residents of this island will continue to cut their fossil-fuel consumption, hold their own, or increase it. I think the answer will largely depend on whether or not they are able to afford to keep the existing system operational.