DISTRIBUTED WIND
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SOME THOUGHTS ON THE WIND TURBINE INDUSTRY IN GREAT BRITAIN
David Taylor, Business Development Manager at UFW Wind Division offers his thoughts on the wind turbine industry in Great Britain and answers some of the questions he is regularly asked by investors…
The alternative energy industry is gaining momentum and this is only set to continue with widespread support from governments, companies, corporations and individuals.
IN RESPONSE TO THE PRESS A key area of criticism associated with wind turbines is the noise they are believed to produce. However, it is worth noting that modern wind turbines are very quiet and adhere to the strict legislations on this matter.
An EC Wind 55Kw at 300m is approx. 35dB – by comparison a busy road at 5km is 35-40dB (EWEA, Wind Energy – The Facts).
WHY ARE WIND TURBINES SUITABLE FOR FARMERS? Farming has faced many challenges over recent years - the farmers I speak to often comment on the crippling effects of rising oil costs, battles with supermarkets over milk pricing and unseasonal weather brought on by climate change.
In such difficult times it is worth knowing that there are various grant schemes and finance options offered by both government and businesses including UFw, allowing farmers the financial opportunity to invest in renewable energy.
Wind turbines can
A recent Government report states that 20% of the UK’s electricity is to come from renewable sources by 2020: put simply we need to invest in renewable energy to reduce the damaging impact of our carbon footprint.
CURRENT MARKET CONDITIONS The UK is home to 40% of Europe’s entire wind resource and it is from this sector that the government and industry professionals expect the greatest contribution towards the 2020 targets.
Over 530 turbines were installed in the 15-100Kw field in 2012 - a 355% growth compared to only one year before - and projections for 2013 are higher again.
provide an energy supply as well as the option to sell the excess energy produced back to the national grid via the Feed in Tariff (FIT) scheme, thus creating an additional revenue stream for your farm.
UNDERSTANDING THE APPLICATION PROCESS
A thorough assessment of the site should be undertaken prior to selecting a wind turbine. I would always recommend a full technical survey of your farm’s land, taking into account your electricity usage, average wind speed and capacity to supply surplus energy to your local grid.
The annual average wind speed at a potential site for a wind turbine is the single most important characteristic when assessing the viability of a wind turbine,
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as this significantly affects the generated power which will impact any income streams from FIT and the sale of surplus electricity.
At UFw ltd I commission independent, site specific, wind speed assessments for the location of the wind turbine. This report not only provides a much more accurate wind speed (the worst error I have seen to date is 0.5m/s) but also provides data on the wind direction.
Such reports are not overly expensive - approximately £750 plus VAT - money well spent when considering a substantial investment of between £50k and £500k for a small to medium scale wind turbine.
I am surprised that many installers still use the NOABL database to perform these sorts of wind feasibility tests. The NOABL database provides a predicted annual average speed for a 1km by 1km grid square. There are two issues with this information: firstly, 1km x 1km is a fairly vast area and local differences within the sector can be massive, secondly the NOABL has been proven to be up to 3m/s out when compared to measured data from an onsite anemometer - or in financial terms, £21k per annum difference in FIT income on a typical farm wind turbine such as the EC Wind 55Kw.
INVESTMENT OPPORTUNITIES BROKEN DOWN
Costs vary depending on the wind turbine make and model. The UFw EC wind turbine costs around £280-£300k to install, with a further cost of £850 per annum to insure and £2,500 for service and maintenance.
however, the estimated FIT Income is around £30-60k depending on wind speed, which accounts to an average payback period of 5-7 years, with a possible payback period of 3 years on extreme sites. This allows investors a short payback period with a secured income for the longevity of the turbine, which in the case of the EC Wind model is 25 years.
There is little surprise why wind energy is fast becoming a leading investment opportunity for farmers, with offerings of government backed schemes and a short payback period – a great security in otherwise very turbulent times.
UFW - Wind Division
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