The rapid downward trend of solar photovoltaic (PV) equipment prices over the last decade, driven initially by German government feed-in tariffs, is leading to a revolution in power production. This is not just a technology change, it is a change of business model, of who provides power and ultimately who benefits from the technology.
Farmers in Ireland are uniquely positioned to take advantage of Ireland’s significant solar resource.
Solar photovoltaic energy converts sunlight to direct current using semi-conductor cells. They typically convert 16% to 20% of the solar energy to electricity via solar modules (collection of solar cells).
Inverter
This direct current (DC) is then passed through an inverter that converts it to alternating current (AC). Inverters have a number of other functions including interfacing with the grid to ensure that if there is a fault, the inverter does not send current that could risk harming an individual on the network. They also have metering and telecommunications technology to allow one to see the annual production from the cells.
Finally, some inverters also can manage the use of battery storage to even out the flow of current to a building or facility. Modern inverters essentially do all the required grid interface management at smaller scale installations.
Capacity growing, cost falling
Global installed capacity will grow to an estimated 400GW by the end of 2017, with 2.5 panels being installed every second across the world. This is now being driven by the staggering fall in costs of solar hardware with PV modules, by 40% in the last 18 months alone and 90% over the last decade. While module prices are not the only costs (installation, inverters, grid all have a cost), the market price in auctions for large-scale electricity from solar has dropped to near parity with grid prices in many sunnier climates. It may close that gap in the years to come in Ireland.
While generating intermittent renewables is not with out external costs, the additional falling costs of batteries, offshore wind and the development of grid management solutions does mean the future for solar energy globally is bright!
Traditionally, Irish electricity providers were State-owned, with the State in control of the monopoly of generation and customer supply. The profits from our electricity supply were re-invested within the State. To this day the largest of the suppliers, ESB, is still State-owned, contributing over €1bn in profit to the State coffers over the last five years.
This has changed and will continue to with deregulation, and the opportunity is now to ensure that citizens, farmers and SMEs get to become the electricity suppliers of choice into the future – not multinational-owned entities for which profit maximisation is the only driver. This citizen or community energy revolution has had a massive effect in Germany with over half of renewables owned by the German people. They have it on their roof or own it via a co-operative or a commercial company owned by pension funds from German citizens.
The forthcoming renewable electricity support scheme is an opportunity to put the regulatory framework in place to ensure that the agricultural sector can utilise the sale of energy as a legitimate, clean, profitable, low-risk and sustainable form of income
The opportunity of the circular economy, where we purchase our electricity from ourselves is one to grasp, and the forthcoming renewable electricity support scheme is an opportunity to put the regulatory framework in place to ensure that the agricultural sector can utilise the sale of energy as a legitimate, clean, profitable, low-risk and sustainable form of income.
Speculation
The opportunity for farmers heretofore in PV has been in the area of solar farms. A large number of indigenous and international solar developers have speculated on the forthcoming supports for PV. This speculation has driven the number of grid connection applications for solar energy to almost 7,000MW. Our peak summer demand in the Republic of Ireland is near 3,000MW.
As we have a limit of intermittent renewables of 75% by 2020, with some wind already on the system, it is fair to say that the amount of PV that Ireland can realistically use is between 1,000MW and 1,500MW. So there is likely to be a significant number of those speculators losing out, and the options that farmers have signed in this area will not be exercised. If the split between farm-scale and roof-mounted is 50/50, it is likely that only 10% of options will come to fruition.
Income from roof-mounted panels
However, there is a more sustainable, more even and arguably more socio-economically beneficial method for the agricultural sector to benefit from the solar revolution. That is, subject to appropriate PV supports, to install smaller installations on roofs of large agricultural facilities and connect into the distribution grid, similar to the German model.
This could provide significant revenue for the duration of the life of the panels (25 to 35 years), and could be directed into the farm allowing for greater investment in productive agriculture and higher farm incomes. The Government is set to launch a consultation on the renewable electricity support scheme over the next few weeks and it will outline an overall design for the scheme.
Energy in Agriculture conference
The forthcoming Energy in Agriculture conference on 22 August in Gurteen Agricultural College we will go through the technology options, the grid, and the legal and financial implications of the forthcoming support scheme. We will also outline the key opportunities and pitfalls for farmers in Ireland in taking the solar opportunity.
A number of solar installers will present their offerings and some energy suppliers will also be present to promote the opportunity of power purchase agreements.
The Energy in Agriculture conference is taking place in Gurteen College, Co Tipperary, on 22 August from 10am to 5pm. The event is free and KT-approved. Register online to attend and book individual advice clinics. Read more
Special focus: renewable energy
The rapid downward trend of solar photovoltaic (PV) equipment prices over the last decade, driven initially by German government feed-in tariffs, is leading to a revolution in power production. This is not just a technology change, it is a change of business model, of who provides power and ultimately who benefits from the technology.
Farmers in Ireland are uniquely positioned to take advantage of Ireland’s significant solar resource.
Solar photovoltaic energy converts sunlight to direct current using semi-conductor cells. They typically convert 16% to 20% of the solar energy to electricity via solar modules (collection of solar cells).
Inverter
This direct current (DC) is then passed through an inverter that converts it to alternating current (AC). Inverters have a number of other functions including interfacing with the grid to ensure that if there is a fault, the inverter does not send current that could risk harming an individual on the network. They also have metering and telecommunications technology to allow one to see the annual production from the cells.
Finally, some inverters also can manage the use of battery storage to even out the flow of current to a building or facility. Modern inverters essentially do all the required grid interface management at smaller scale installations.
Capacity growing, cost falling
Global installed capacity will grow to an estimated 400GW by the end of 2017, with 2.5 panels being installed every second across the world. This is now being driven by the staggering fall in costs of solar hardware with PV modules, by 40% in the last 18 months alone and 90% over the last decade. While module prices are not the only costs (installation, inverters, grid all have a cost), the market price in auctions for large-scale electricity from solar has dropped to near parity with grid prices in many sunnier climates. It may close that gap in the years to come in Ireland.
While generating intermittent renewables is not with out external costs, the additional falling costs of batteries, offshore wind and the development of grid management solutions does mean the future for solar energy globally is bright!
Traditionally, Irish electricity providers were State-owned, with the State in control of the monopoly of generation and customer supply. The profits from our electricity supply were re-invested within the State. To this day the largest of the suppliers, ESB, is still State-owned, contributing over €1bn in profit to the State coffers over the last five years.
This has changed and will continue to with deregulation, and the opportunity is now to ensure that citizens, farmers and SMEs get to become the electricity suppliers of choice into the future – not multinational-owned entities for which profit maximisation is the only driver. This citizen or community energy revolution has had a massive effect in Germany with over half of renewables owned by the German people. They have it on their roof or own it via a co-operative or a commercial company owned by pension funds from German citizens.
The forthcoming renewable electricity support scheme is an opportunity to put the regulatory framework in place to ensure that the agricultural sector can utilise the sale of energy as a legitimate, clean, profitable, low-risk and sustainable form of income
The opportunity of the circular economy, where we purchase our electricity from ourselves is one to grasp, and the forthcoming renewable electricity support scheme is an opportunity to put the regulatory framework in place to ensure that the agricultural sector can utilise the sale of energy as a legitimate, clean, profitable, low-risk and sustainable form of income.
Speculation
The opportunity for farmers heretofore in PV has been in the area of solar farms. A large number of indigenous and international solar developers have speculated on the forthcoming supports for PV. This speculation has driven the number of grid connection applications for solar energy to almost 7,000MW. Our peak summer demand in the Republic of Ireland is near 3,000MW.
As we have a limit of intermittent renewables of 75% by 2020, with some wind already on the system, it is fair to say that the amount of PV that Ireland can realistically use is between 1,000MW and 1,500MW. So there is likely to be a significant number of those speculators losing out, and the options that farmers have signed in this area will not be exercised. If the split between farm-scale and roof-mounted is 50/50, it is likely that only 10% of options will come to fruition.
Income from roof-mounted panels
However, there is a more sustainable, more even and arguably more socio-economically beneficial method for the agricultural sector to benefit from the solar revolution. That is, subject to appropriate PV supports, to install smaller installations on roofs of large agricultural facilities and connect into the distribution grid, similar to the German model.
This could provide significant revenue for the duration of the life of the panels (25 to 35 years), and could be directed into the farm allowing for greater investment in productive agriculture and higher farm incomes. The Government is set to launch a consultation on the renewable electricity support scheme over the next few weeks and it will outline an overall design for the scheme.
Energy in Agriculture conference
The forthcoming Energy in Agriculture conference on 22 August in Gurteen Agricultural College we will go through the technology options, the grid, and the legal and financial implications of the forthcoming support scheme. We will also outline the key opportunities and pitfalls for farmers in Ireland in taking the solar opportunity.
A number of solar installers will present their offerings and some energy suppliers will also be present to promote the opportunity of power purchase agreements.
The Energy in Agriculture conference is taking place in Gurteen College, Co Tipperary, on 22 August from 10am to 5pm. The event is free and KT-approved. Register online to attend and book individual advice clinics. Read more
Special focus: renewable energy
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