The inventor of solar sharing Akira Nagashima received Solar Award 2013. He was one of three winners in the "Challenge" category.
Solar Award 2013 winners couldn't be more diverse. Here are some randomly picked laureates:
The inventor of solar sharing Akira Nagashima received Solar Award 2013. He was one of three winners in the "Challenge" category.
Solar Award 2013 winners couldn't be more diverse. Here are some randomly picked laureates:
4. Tamaden installs solar panels on the borrowed roof and connects them to public grid.
5. Tamaden earns revenue from selling solar power to the grid (hereby the use of nation's feed-in tariff system)
6. From that revenue, Tamaden pays rent to the roof owner, dividends to investors who bought the bonds, and pays back the loan.
That's it. In theory, everything works perfectly. In reality, it works moderately well. In its short year-and-a-half history, Tamaden has launched two solar powerplants: one on the roof of Keisen University (恵泉女学園大学, 30 kW) and the other at Yuimaru Hijirigaoka (ゆいま~る聖ヶ丘, 67 kW), both in Tama, Western Tokyo.
This model does work, but whether it works as a for-profit enterprise is another question. When I visited Tamaden's solar plant on the roof of Keisen University and heard Mr. Sadatsugu Ohki, Tamaden's vicepresident, explaining their journey, my impression was that Tamaden is a bit struggling. The single biggest headache seems to be financing - How to slice the pie?
The pie - revenue from solar power sales - is too small for so many eaters, and its size is pretty much fixed. Installed panels can only generate so much electricity.
Revenue from electricity sales (売電収入) is economically viable if an individual or a company can keep all or most of the profit from electricity sales. Then the income is substantial. (Whether this model is socially responsible or desirable is another question. → Consider mega solar power plants that are wonderful moneymaking machines for corporate investors, but bring little or no benefit to local economy.)
But if revenue from electricity sales is to be divided between the company that installed the panels (salaries and company running costs), the financial institution (loan repayment), the roof owner (rent), the investors (dividends) and whoever else comes in between, inevitably someone will end up hungry. After a due share is paid to the roof owner, the investors and the bank, Tamaden is left with specks that can hardly cover employees' salaries.
There are also other issues, for instance finding the right roof. In a city full of buildings and roofs, finding the right roof is surprisingly difficult. Few roofs fulfill all requirements necessary for solar power generation. The roof must be big enough (installation area of more than 100m2), suitable for solar panels (the roof must be sunny and able to bear heavy load of several tons, the building can't be too high, etc). Roof owner should also have the prospect of staying in the same place for next two decades (few private companies can promise this).
Another issue is that the fixed price per kilowatt hour of electricity sold to the grid (売電単価) is getting lower every year - last year it was 42 yen/kWh, this year 38 yen and next year even less. This means that profit per kWh from future plants will be lower, but the costs of paying roof rent, dividends, loan, and salaries, will be the same.
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However, these are universal problems that everyone trying to build community power plant has to consider. Here I want to focus on the question of slicing the pie, because this question specifically applies to Tamaden and to the question in the title - can a community power plant be a successful for-profit-enterprise?
My visit to Tamaden prompted me to believe that for-profit probably won't work. So is Tamaden doing it wrong and should it quit? No! Tamaden is trying to build sustainable community power plants and that's definitely a right thing to do. Renewable energy build by the people for the people is a new field where everyone is beginner, and trial-and-error is the only possible approach. Tamaden is doing us a favor by accumulating know-how from their own trials and errors, and so smoothing the way for those who come next.
From the outsider point of view, there are two different ways how to solve Tamaden's problem with financing:
1. Find another pie to slice - additional source of income.
Organizing on-site excursions, such as the one I participated, is a source of income, but obviously too small. At the moment, though, I can't think of any other realistic source of income.
2. Go non-profit.
If the initiative is socially desirable but not profitable, settle for a non-profit approach with volunteers instead of employees. The obvious challenge is how to sustain high motivation of volunteers who have other full-time jobs. Keeping volunteers' morale using solely the psychological reward of doing the right thing has its limits. But people in Tamaden must know the pros and cons of profit versus non-profit better than anyone else.
In fact the second option – going
non-profit - is what Tamaden is doing right now. As Mr. Ohki, who showed us around the
Keisen solar plant site, said:
“We have to constantly remind ourselves that
our goal is not moneymaking.”
Tamaden, a limited liability company, works closely with non-profit Tama Energy Association (多摩エネ協 = 一般社団法人 多摩循環型エネルギー協会). Indeed, Mr. Ohki's business card featured his position as a Tamaden vicepresident on one side, and as a member of the board of directors of Tama Energy Association on the other.
Other Tamaden employees also overlap with Tama Energy Association members.
So what is this article about if the problem is already solved? Well, I can't help feeling slightly betrayed - something is shown as a successful business model, but in fact it is a successful non-profit model.
Other than that, I'm keeping my fingers crossed for Tamaden in finding their next roof and spreading citizen-driven renewable energy projects in Tama and elsewhere.
Ganbare Tamaden!
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(This article is not about solar sharing, but the topic is at least as important.)
Kondadai is a piece of forest about 4 km from Tsukuba station in the city of Tsukuba, Ibaraki prefecture.
I naturally took the resident view because Kondadai reminded me of Brezina, a forest park in my hometown back in Slovakia.
This is Brezina in January 2013 - the last time I was there.
Nishigoya Solar Power Plant of Ken Matsuoka began operation on October 15, 2013. The opening ceremony was held soon after - on Sunday October 27.
It was the sunniest Sunday you could wish for an event at a solar power plant.
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Matsuoka started his address with self-introduction: "I'm Ken Matsuoka, chief of Nishigoya Solar Power Plant."
He laughed and the audience too. "Power plant chief" was an exact description of his role in the project, and yet the words somehow sounded too big. Not many people can introduce themselves as power plant chiefs. Not many people know someone who'd be a power plant chief. I was proud to be one of them.
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Among the guests there were family members and friends who volunteered their time to help build the plant, and also some VIPs - like the father of solar sharing Akira Nagashima and Japan's ex-prime minister Naoto Kan.
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Here at the ceremony I heard for the first time the story of how it all began a year and a half ago:
By a series of coincidences, Ken Matsuoka happened to visit the Naoto Kan's office as a technical support for an interview. During the interview, Mr. Kan showed them materials on his desk: "Look at these amazing renewable energy projects."
On the desk, Matsuoka saw a photo of solar sharing. "I just found what I want to do," he allegedly murmured.
Next day he contacted Akira Nagashima.
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About the plant:
Matsuoka's plant consists of 579 panels (100W/panel) installed on a metal frame at the height 3.5 meters over an area of about 1500 m2. The plant's capacity - maximum output to sell to electric utility - is 49.9 kW.
A special feature of Matsuoka's plant is a winch allowing to change the tilt of all 579 panels (more than 8 tons) at once. The device, according to Matsuoka, didn't cost more than 1 % of the total investment, but it could increase the output by about 5 % - that is a significant number over 20 years.
We could see the effect of the winch at the ceremony.
First, Matsuoka and four selected guests turned on five inverters - this was a power plant version of ribbon-cutting ceremony:
On October 23, 2013, I met Akira Nagashima at his Solar Sharing Trial Site (ソーラーシェアリング実証試験場) in Chiba prefecture.
Akira Nagashima, the inventor of solar sharing, is a celebrity in the community of solar sharing enthusiasts.
There are two plants on his trial site, both connected to public grid. Each has an output of about 4.5 kilowatts. There are many solar sharing projects in Japan, but this site is special because it's the first one. All others are imitations of this one.
Plant No. 1 (一号機) is installed above the garden. On the picture you can see peanuts, carrot, leek, taro and a row of unindentified leaves growing under the panels. Nagashima is standing on the side.
Plant No. 2 (2号機) is installed above a parking lot. Nagashima is standing below with a customized module that just arrived from manufacturer.
It still feels strange to call this kind of solar installation a power plant. For too long time we used to think of power plants as big unsightly buildings somewhere faraway.
Definition: Power plant is a complex of structures and equipment for generating electric energy from another source of energy.
Solar panels on the pictures above generate electricity from sun - they are legitimate power plants.
Monstrous appearance we expect from power plants is, luckily, optional. Solar sharing plants so far unticked this option - they're neither big nor ugly nor remote.
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Eureka moment
The idea of solar sharing first popped up in Nagashima's mind 10 years ago - in late 2003. Nagashima, now 70, was then studying law at Keio University in Tokyo (yes, at the age of 60). Nagashima got a biology textbook in his law course.
Why would one need a biology book in a law course?
Good question. I forgot to ask.
In that biology book, Nagashima came across the concept of light saturation point.
Light saturation point: Plants need sun to perform photosynthesis. We tend to believe that the more sunshine plants get the better, but this is not true for most plants. The reason is that most plants have a light saturation point - the amount of light intensity beyond which photosynthesis rate doesn't increase. All light beyond this saturation point is not only useless, but can even be stressful to the plant (for example causing overheating and water evaporation)
The concept of light saturation point led to Nagashima's eureka moment: If plants don't need all sunshine they're getting, why don't we use the excessive rays for power generation? Instead of laying solar moduls directly on the ground, we can put them a few meters higher and with spaces in between, so that plants below can still get their share of sun and keep growing.
The idea was out there and the time was ready for the next step: work out details and give it a real, tangible shape.
And a name.
Solar Sharing Trial Site was established in May 2010. Plant No. 1 started operation in August 2010 and plant No. 2 in April 2011. This was the only solar sharing project in Japan at that time.
Low-tech
Tsukuba is a city about 60 km northeast of Tokyo. One of the solar sharing pioneers Ken Matsuoka launched his project there in fall 2012.
He installed 579 solar panels on a metal frame over land area of about 1500m2.
The construction - from clearing the land and building metal frame to setting panels and cables, all based on Matsuoka's design and done DIY way - took him almost a year. Everything got ready in September 2013.
As of today October 14, 2013, the site is on a test
run. Actual selling of electricity to the grid is scheduled to start tomorrow – on October 15, 2013.
Matsuoka
will sell maximum of 49.9 kW to Tokyo Electric Power Company for the fixed
price of 42 JPY/kWh, guaranteed for 20 years.
Matsuoka also introduced manual tilting system to regulate the amount of light that can reach either the panels or the ground. He can now turn panels with a total weight of more than 8 tons using a single winch. Shading rate is 25.5 % (at panel tilt 0°). The purpose of tilting is not necessarily to maximize power generation output but quite the contrary, it can be used to provide more sunshine to crops when necessary, e.g. at critical growth stages like budding.
Matsuoka adjusting panel tilt:
Matsuoka is not a professional farmer but he does have experience growing his own food. He is now producing soybeans, tomatoes, eggplants and other crops for personal consumption under the panels. The site is registered as miscellaneous land - meaning Matsuoka has to pay higher taxes compared to agricultural land, but he has more freedom to choose how to use the land, what to grow and at what quantities. When we spoke last time, Matsuoka was envisioning a rice field on one part of the land, and a community garden on another. Both are great ideas because there are few on-site trials of growing rice under solar panels, and a community garden with many people coming and growing their vegetables just sounds good. Let's see what will eventually become reality.
The best thing about solar sharing is that building and running a power plant is not anymore something that only big power companies can do. Both technologically and financially, the hurdle is now low enough so that almost anyone can build their own small solar power plant and grow food below it. This will undoubtedly change our way of thinking about electricity.
Link to Ken Matsuoka's blog (Japanese):
http://gba03100.cocolog-nifty.com/tsukuba_ss/