Avenues for Community Wind in Developing Countries Trends and innovative business models from South Africa and Mexico Carlo Schick WWEA
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%
Challenges for Community Wind in Developing Countries Challenges of Wind Power in Developing Countries Challenges of Community Wind in Developing Countries Lack of coherent policies Administrative burdens High capital costs & inadequate availability Underdeveloped grid infrastructure Centralized/monopolized markets 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 CW only plays a minor part
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 Source: IPPP Office SA, 2015 1. Job creation 2. Local ownership: minimum of 2.5% ownership of a community entity 3. Enterprise development 4. Socio-economic development Source: http://energy.org.za/
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 Source: IPPP Office SA, 2015
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
Mexico - Yansa Yansa Community Interest Company (CIC) Yansa Foundation Local office Ixtepec (Oaxaca) project specific CIC Source: yansa.com 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 Source: yansa.com
Summary - 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 Also Germany can learn from international experiences!
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
Thanks for your attention! Time for questions and discussion Contact: cs@wwindea.org
Coimbatore, 21 June 2015
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
Additional REI4P Information Coimbatore, 21 June 2015
Coimbatore, 21 June 2015