Brian Jones Head: Green Energy Cape Town Municipality South Africa
The Relevance of the Danish Wind Experience to South Africa
UEMP Study Tour 01-10 December 2010 UEMP- Urban Environmental Management Program – a Danish Government initiative Visit two regions (Ringkobing and Lolland) “using renewable energy for economic development and impoverished areas”
Country Comparison: Denmark • Total Population 5.5 million • Average per capita GNI $59130 (2008) Atlas method, World Bank
• Ample access to a variety of sources of electricity if r/e sources not available (e.g. coal) • De-regulated electricity industry • Kyoto obligation to reduce CO2 emissions • Wind resource generally less than R.S.A. • Feed-in tariffs in place
Country Comparison: Denmark • • • •
Highest point above sea level 100m Abundance of water & therefore bio-mass World’s largest exporter of pigs Intensive efficient agriculture, small farms (60 000 pigs, 10 workers)
Country Comparison: South Africa • Total Population 47 million • Average per capita GNI $5820 (2008) Atlas method, World Bank
• Serious electricity supply constraint • Highly regulated electricity industry • No Kyoto obligation to reduce CO2 emissions • Feed-in tariffs not (yet) implemented
Country Comparison: South Africa • • • • • • • •
Highest point above sea level about 3000m Developed manufacturing sector Large scale unemployment Low levels of skills Massive urbanisation and housing backlog Water scarce Low bio-mass Among the best solar insolation in the world
Lolland and Ringkobing • Collapse of shipbuilding industry in 1980’s • High unemployment- 45% • Loss of skills
Lolland and Ringkobing Strengths • • • • • •
Manufacturing capacity Good Universities Pro-active municipalities Abundance of wind High agricultural yields Central government support (Policies, finances, legislation etc)
Spheres of Economic Activity • Renewable Energy Research & Development • Testing and demonstration- accelerated product development • Manufacturing e.g wind (Vestas- world leader in wind turbines) • Renewable energy generation
Spheres of Economic Activity cont’d • Community participation and profit sharing • Self sufficiency in energy (in anticipation of future energy prices hikes fuelled by the oil peak and CO2 reduction compliance)
Lolland’s Vision (Mayor) Lolland aims to become a modern, sustainable society and an international role model thanks to its drive, a sound economy and local ownership of innovative, holistic solutions concerning the global environment and energy challenges. This is achieved by local political commitments to break with the political tradition of reacting to crises instead of setting proactive goals for the future.
Lolland’s Vision (Mayor) cont’d Lolland is nature and we value it highly. However, we cannot survive on nature alone. Based on its geography and natural resources, Lolland Municipality has chosen to focus on the business strategy of Lolland Community Testing Facilities – Lolland CTF - a determined commitment to attract business, education and research based on natural resources.
Lolland Community Testing Facilities (CTF) • Provides international Testing and Demonstration platform for R/E technology and products • Combines needs of industry with the municipality’s vision for sustainable growth and development • Triple helix partnership- municipality, industry and academia (and large community input)
Lolland Community Testing Facilities (CTF) cont’d R&D, testing and/or demonstration in: • Wind turbines (on shore and off shore) • • • • • • • •
Algae cultivation (Onsevig Climate Park) Hydrogen Community Solar power Bio gas generation Bio mass district heating (straw and wood chips) Rape seed production Waste recycling and disposal (Incineration) Waste Water treatment
Ringkobing-Skjern Energi2020 Goals 100% Renewable energy by 2020 (20% in 2007) • Wind 25-30% • Bio energy (Slurry and crops) 15-25%, (130 km piped bio-gas transmission system) • Transportation 5-15% • Buildings 10-20% • Other sources 10-25% (PV etc.)
Ringkobing-Skjern Energi2020 Financing • Feed-in tariffs • Income from R/E ownership and energy sales (DKr 20mill profit per turbine over project life), • Local ownership by population, • Compensation for land usage • Recovery of feed-in tariff through the electricity tariffs (separately reflected on household bills)
Feed–in Tariffs Producers guaranteed a subsidy which paid in one of 3 different ways: •Energinet.dk buys the electricity production at guaranteed price and then sells it on the Nord Pool power exchange. Used for the majority of wind turbines •Energinet.dk pays a subsidy, size of which depends on electricity market price. Used for wind turbines owned by power stations and other renewable energy production facilities
Feed–in Tariffs cont’d •For producers selling their electricity production on the market themselves, Energinet.dk supplements their income up to a guaranteed profit. This type of settlement is used for the large local CHP plants.
SURVIVAL OF THE FATTEST “I’m sitting on the back of a man. He is sinking under the burden. I would do anything to help him. Except stepping down from his back” Climate changes are caused by the western world, but the consequences hit the third world hardest. The west all too often argues that they will have admissions and promises of further CO2 reductions from China, India, Russia and other countries that emit (and always have emitted) far less than the western world.
