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UK market assessment of small wind installations
Grant arrangements for installation of microgeneration wind systems in the UK has given way to a system of feed in tariffs. The Tariffs have been set at levels aimed at attracting investors across a range of technologies.
This has put the competing technologies on a fairly level playing field. The result was intended to promote small wind in areas conducive to effective energy capture, namely where a turbine might be expected to achieve a good capacity factor.
The UK FIT system is now in the market and we will monitor the resulting uptake. It does seem at present that for most domestic users Photo Voltaic is the most attractive. The capacity factor is relatively reliable and calculable meaning that there is only a limited risk of achieving a below expected return.
Wind on the other hand is relatively risky. The annual wind speed distribution is variable from year to year and can vary greatly with location, height and local topography.
Prior to installation in most areas of England it would be very important to carry out a full site investigation and to calibrate this against the nearest well defined sites.
There are of course some locations where wind energy is known to be well in excess of the amount needed to generate a worthwhile profit. These are often in very open areas with topographical advantage. The need to carry out an appraisal of the site is very much best practice as turbine selection is also sensitive to wind speed distribution even on obviously good sites.
Perhaps the most encouraging and helpful example of best practice is to be found in the example provided by St Column Minor Primary School where the various forms of Microgeneration have been studied by the children who have also been engaged in scientific survey of conditions. They have used both PV and Small Wind to produce a really useful mix of electrical supply for their own needs and for export to the Grid. Success stories like theirs will benefit the sensible and successful uptake of small turbines i.e. those with rated output of up to 15 kW.
The design of Feed In Tariffs was predicated on achieving an operational return on capital employed, for enough, but not all investors. A simple payback period of say 8 years may attract a stable domestic investor but perhaps not a straight business or local authority which might be seeking payback in 4 to 6 years, say.
Marine South East feel that adjustment of the FIT levels must be reviewed after a running in period. This was originally planned for year three (i.e. after 2 years) and this seems sensible.
A key factor encouraging domestic microgeneration system is the exemption from income tax liability. A key barrier is the cost of site survey and planning. Connection is still more difficult potentially for Small Wind as it is not yet mature.
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