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COMMUNITY POWER

Defined by Its Common Good Purpose


Leire Gorroo
Community Power Expert
lg@folkecenter.dk

Community Power Conference


Fukushima
3 Nov 2016

Energy
Democracy

COMMUNITY
POWER

Local
Development
Local
Acceptance

1/16

Ownership Models for Wind Turbines


with a Focus on Regional
Development and Local Acceptance
A Case Study of the Hanstholm Harbour Project
Pozzi, L.; Therkildsen, M.; Gorroo Albizu, L.; Grundhal, L.; Wimmer, D. O.; Nelles, A. R.

Introduction
Denmark
Norway
Sweden

DENMARK
Copenhagen

Germany

3/16

Introduction
The Town of Hanstholm

Approx. 2,300 inhabitants


Hanstholm

1,600 people work at the


harbour or harbour related
businesses
Hanstholms
economy
is
reliant on the harbour activity
12 % of the municipality tax
Harbour expansion plan
4/16

Introduction
Hanstholm Harbour Expansion Plan

350 new jobs in the harbour, 300


new jobs in dependent businesses
Total cost EUR 202 million
Includes a wind turbine project,
which will partly finance it.

5/16

Introduction
Hanstholm Harbour Expansion Plan
Harbour Company cannot own the wind farm.
Local resistance against wind power.
In 2006, a commercial developer wanted to replace its 3 WTs by 6 new
ones.
More than 1,200 complains.
The building permission was denied and the project was cancelled.

6/16

The Objectives
1. To quantify the economic contribution of wind power projects in
combination with different ownership models to local
development.
2. To find out if and how the ownership model of wind farms
impacts on local opposition/acceptance of the installation.

Examined Ownership Models


According to the Danish Act for Promotion of Renewable Energy
2008, 20% of the shares of every wind turbine higher than 25 m
have to be offered to local residents first to those living within
4.5 km from the wind turbines and then to those living within the
municipality.
20% ownership

Local Cooperative (or guild)

80% ownership

100% ownership

Company
Local Cooperative (or guild)
Municipal Company
Community Fund

8/16

Economic Analysis
The Wind Project Economy
Number of WTs

Total Capacity
Average Annual Production

30.6 MW
138 GWh

Average Electricity Price (incl. FIT) (2010-2015)

73 EUR/MWh

Average Electricity Price (excl. FIT) (2010-2015)


Full-load Running Hours with FIT

38 EUR/MWh
22,819

Total Investment
Operation and Maintenance Cost
Land Rent

292.23 million EUR


14 EUR/MWh
1.7 million EUR/year

Interest rate
Municipal Company
All Others

2.37%
4.5%

Inflation

2% Not included in the calculations


and deducted when necessary
9/16

Economic Analysis
Harbour Income from the Wind Turbines
over a 20-year Period
45

Net Present Value


(million EUR)

40
35
30
25
20
15
10
5
0
Local Cooperative
(guild)

Company

Land rent 100% ownership

Community Fund Municipal Company


Extra income

10/16

Acceptance Analysis
Interviewed Actors

The Harbour Company


The Municipality
Local Residents of Hantsholm
Local Residents of Thisted Municipality
Companies in Hantsholm
Companies in Thisted Municipality
Nordic Folkecenter for Renewable Energy (NGO)

11/16

Acceptance Analysis
Results
POOL effect (Please On Our Land). The wind project is not only
accepted, but welcome.
As long as the wind turbines provide enough income to be able to
realise the harbour project, I do not mind who the owner will be
Hanstholm Harbour Company, Hanstholm inhabitants and Thisted
Municipality inhabitants are the three (and the only three) actors that
are accepted by the society as owners for this project.
The Community Fund Ownership model is the only one that fulfils this
will and, therefore, it is considered to be the most accepted ownership
model.
12/16

Research Conclusions
Unlike the private (or commercial) ownership models, the community
fund model and the municipal company model provide additional
income for local development projects.
Distribution of benefits throughout the community, i.e. common
good, in form of local development is seen as the key for local
acceptance of onshore wind projects.
It is the purpose (not the ownership) of wind project what makes a
difference for the local community. But, at the same time, the
purpose is clearly reflected in the choice of ownership model.

13/16

Community Wind Power


Wind Power for the Common Good

Community ownership is focused on the objective of using the income generated


by renewable energy projects to benefit the residents of local communities, i.e.
the main objective is achieving the common good. In contrast, the main objective of
commercial ownership models is to generate private profit.

15/16

Final Remarks
It is necessary to include specific targets for Community Power
(FOR COMMON GOOD) in national, regional and local energy
policies in order to make the most of the potential for
socio-economic benefits of renewable energies.
This will be specially relevant for rural areas.

16/16

Communities for RE

RE for Development of Communities

Thank you for your attention!

COMMUNITY POWER
Defined by Its Common Good Purpose
Leire Gorroo
Community Power Expert
lg@folkecenter.dk

Nordic Folkecenter for Renewable Energy


www.folkecenter.net
Nordisk Folkecenter

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