community wind power in developing countries
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Coimbatore, 21 June 2015
World Wind Energy Association
Uniting the World of Wind Energy www.wwindea.org
Avenues for Community Wind in Developing
Countries Trends and innovative business
models from South Africa and Mexico
Carlo Schick – WWEA
Husum, 15.09.2015
Coimbatore, 21 June 2015
World Wind Energy Association
Uniting the World of Wind Energy www.wwindea.org
Introduction
“Renewable Energies are not there to solve all problems of all people, but they
can contribute to reach at least a base level of satisfaction for most people!“
Wind power as a means for poverty reduction and sustainable development
• Alleviate dependence on energy imports
• Cost-competitiveness of RE
• Local production, local added value
• Leapfrog high-carbon technologies
Community power as the most democratic, local
and accountable option
RE project growth rate from 2008 to 2013
o Developing Countries: 143 %
o Industrialized Countries: 84%
Husum, 15.09.2015
Coimbatore, 21 June 2015
World Wind Energy Association
Uniting the World of Wind Energy www.wwindea.org
Challenges of Wind Power in Developing Countries
• Lack of coherent policies
• Administrative burdens
• High capital costs & inadequate availability
• Underdeveloped grid infrastructure
• Centralized/monopolized markets
Challenges of Community Wind in Developing Countries
• Access to risk capital for community members
• Often face problems with land ownership rights
• market dominance by foreign corporations
• Very few pilot/showcase projects
• Lack of awareness about the positive impacts
Challenges for Community Wind in Developing Countries
CW only
plays a
minor
part
Husum, 15.09.2015
Coimbatore, 21 June 2015
World Wind Energy Association
Uniting the World of Wind Energy www.wwindea.org
Policy background: REI4P – South Africa
• Introduction of the Renewable Energy
Independent Power Producer Procurement
Program (REI4P) in 2011
• Wind power target for 2030: 9 200 MW
• Bid assessment: 70% Price + 30% economic
development criteria
1. Job creation
2. Local ownership: minimum of 2.5% ownership of a
community entity
3. Enterprise development
4. Socio-economic development
Husum, 15.09.2015
Source: IPPP Office SA, 2015
Source: http://energy.org.za/
Coimbatore, 21 June 2015
World Wind Energy Association
Uniting the World of Wind Energy www.wwindea.org
South Africa – just energy
• Community trailblazer project by just energy (NPO)
• Wesley project 33 MW “preferred bidder”
o Land owned by local community landowners and
farmers on former Homeland area
o Developer’s fee utilized to buy equity for the
community ~ 25 % of ownership
o Cooperation with Innowind (EDF subsidiary)
• REI4P currently under revision
Husum, 15.09.2015
Source: IPPP Office SA, 2015
Coimbatore, 21 June 2015
World Wind Energy Association
Uniting the World of Wind Energy www.wwindea.org
Windy conflicts in Mexico
• 2020 targets for onshore wind: 12 GW = 1.5 GW
anually
• No FIT, no tax credit, until now very centralized
• Overall objective: diversification
• Showcase example: Mareña wind farm
o 396 MW
o Resistance drivers
• Impact on fishing expected
• No official impact assessment
• General mistrust in authorities
• Negative experiences
Husum, 15.09.2015
Coimbatore, 21 June 2015
World Wind Energy Association
Uniting the World of Wind Energy www.wwindea.org
Mexico - Yansa
• Yansa Community Interest Company (CIC)
• Yansa Foundation
• Local office Ixtepec (Oaxaca)
project specific CIC
• Pilot project: 100 MW community wind park
o Project owned by CIC (“social objectives”)
o 50% of the revenues into the community
trust
o Currently in PPA negotiation
o Broad acceptance by the local
communities
Husum, 15.09.2015
Source: yansa.com
Source: yansa.com
Coimbatore, 21 June 2015
World Wind Energy Association
Uniting the World of Wind Energy www.wwindea.org
Summary
• Also Germany can learn from international experiences!
Husum, 15.09.2015
- Fierce competition for small players
- Operation highly dependent on grants and donations
- Social entrepreneurs AND project developers
- Not only financial contribution but participative approach
- Projects can have a strong multiplier effect
Coimbatore, 21 June 2015
World Wind Energy Association
Uniting the World of Wind Energy www.wwindea.org
Road Map for Community Power
• WWEA Agenda:
o SAIREC 2015
o Research Project in North Rhine-Westphalia
o WWEC2015 Israel + WWEC2016 Japan
Re-Vitalizing of the Community Power Network
• International impetus:
o International RE policy process
o Climate Finance (Green Climate Fund, COP21)
o Sustainable Development Goals
Husum, 15.09.2015
Coimbatore, 21 June 2015
World Wind Energy Association
Uniting the World of Wind Energy www.wwindea.org
Thanks for your attention!
Time for questions and discussion
Contact: cs@wwindea.org
Husum, 15.09.2015
Coimbatore, 21 June 2015
World Wind Energy Association
Uniting the World of Wind Energy www.wwindea.org
Coimbatore, 21 June 2015
World Wind Energy Association
Uniting the World of Wind Energy www.wwindea.org
Community Interest Company
• New type of company introduced in 2005
• Designed for social enterprises
Profits and assets for public good
• No maximization of profits for
shareholders and owners
• CICs must be limited companies
• CICs more lightly regulated than charities,
but also don’t have the benefits
Coimbatore, 21 June 2015
World Wind Energy Association
Uniting the World of Wind Energy www.wwindea.org
Additional REI4P Information
Coimbatore, 21 June 2015
World Wind Energy Association
Uniting the World of Wind Energy www.wwindea.org
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