“Ignoring climate change will be the most costly of all possible choices, for us and our children.”
Peter Ewins, British Meteorological Office

“In the year 2065, on current trends, damage from climate change will exceed global GDP.”
Andrew Dlugolecki, General Insurance Development

Smile Capital Website Tozzi-untitled-20131030-4962_6975_132545

Small Wind Power

We are actively investing in Italy, one of the leading and most attractive Markets for Mini-Wind power projects driven by favorable regulatory framework and Feed-in Tariff (FiT) scheme.

Market and Investment climate in Italy

The installation of small wind turbines is growing rapidly in Italy since the introduction of fixed feed-in tariffs, representing a stable investment base for operators and investors.

According to a report by the Department of Engineering at Milan’s Polytechnical University (Politecnico di Milano), since the introduction of feed-in tariffs for small wind turbines in 2008, installations have grown exponentially. Also the Italian wind energy association (Associazone Nazionale Energia dal Vento) estimates that Italy has the potential for 1 GW of small wind capable of generating 1,5-2 TWh per year. The key drivers to such rapid market growth is a positive investment climate nourished by a favourable national energy policy promoting decentralized energy supply through wind power combined with attractive fixed and state-guaranteed feed-in tariffs as well as advantageous geographical conditions with  good and stable wind resources.

More than 90% of the turbines are less than 80 kW in size. The majority of the capacity, 70%, is installed in the southern provinces, 25% in the central region, and only 5% in the mountainous north.

The country’s long coastline, the Apennines mountain belt and its islands (Sardinia and Sicilia) offer good wind conditions. Who frequently makes holidays in Italy or who practices Wind-Surf, knows the strong regional wind systems “Scirocco” or “Bora”. According to the University’s Report, 3% of the Italy’s land area (mainly in Southern Italy in Basilicata, Puglia, Campania and Sardinia) has average wind speeds of greater than 6 m/s or good to excellent wind, 37% has average wind speeds from 4 m/s to 6 m/s.

How it works

Most small wind turbines start operating at a speed of 3 m/s and reach maximum power between 11 and 14 m/s.

A Typical Small Wind Turbine

A typical wind turbine and also small wind turbines consist of the following components:

    • The Tower
      Towers are mostly cylindrical, made of steel, painted light grey, and from 25 to 37 metres in height.
    • Rotor Blades
      Small Wind turbines can have two or three rotor blades, made of fibreglass-reinforced polyester or wood-epoxy. The blades are usually between 16 and 26 metres in diameter. The longer the blades, the greater the energy output. They rotate at 10-120 revolutions per minute at constant speed, although an increasing number of machines operate at a variable speed. The blades can be rotated to change the pitch angle and modify power output.
    • The Yaw Mechanism
      The yaw mechanism turns the turbine to face the wind.
    • Wind Speed & Direction Monitor
      Sensors are used to monitor wind direction and the tower head is turned to line up with the wind. Power is controlled automatically as wind speed varies and machines are stopped at very high wind speeds to protect them from damage.
    • The Gear Box
      Most wind turbines have gearboxes, although there are increasing numbers with direct drives.

Advantages and Benefits

Small Wind Power represents a high-yield investment for the next 20-25 years.

  • Why small Wind Power in Italy?
    +
     Highest state-guaranteed feed-in tariff (FiT) in Europe (3x higher than German FiT);
    + Selected Project sites with good and stable Wind resource and energy yield (AWS —Average Wind Speed 5,5 m/s – 7 m/s);
    + Stable Cash-Flows uncorrelated to financial markets and local economy;
    + Low risk and high yield market for Investors.
    • Why invest in- and with us?
      + Experienced management team with mature experience on Italian and German RE market;
      + Local Know-How and proven Project development skills in Italy;
      + In-house technical and managerial skills needed to deliver successful projects;
      + We know what we are offering: Before proposing investment opportunities to our clients, investors and sponsors we invested our own money in a first Small Wind Project. Hence we pre-financed, successfully implemented and operate since January 2014 a 55kWp wind turbine in Roseto Valfortore (FG), Puglia (see Reference project below).
    • What are the Project’s yields and my Returns on Investment?
      + Return on Investment (ROI) = 12-17%;
      + IRR total investment (IRR project): 10-15% pre-tax, 6-11% post-tax;
      + Fixed Interest rate for financier / sponsor:    >6% depending on the maturity;
      + Capital Pay Back Time for financier / sponsor:  2-12 years.
    • General Benefits of Wind Power:

Although still a little bit more expensive than coal, gas and hydro generation (at least if pollution and health impact estimates and climate change costs are not taken into account), wind-generated electricity is close to being competitive even without subsidies and feed-in tariffs as electricity prices and demand both constantly increase and investment and technology costs continue to shrink, offering investors attractive returns over the average 25 year lifetime of a wind project.

Growing numbers of investors and now being attracted by three key benefits of wind projects:

    • Social Responsibility: Investing in clean renewable energy is socially responsible;
    • Lower Risk: Now that thousands of wind farms exist globally, construction and operational risks are very low;
    • Longevity: Long term demand for renewable energy will increase driven by declining fossil fuel sources and carbon reduction policies.
foto-1

Reference Project

About the wind power installation:

55 kWp Roseto Valfortore (FG), Apulia

    • System size: 55 kWp
    • Location:  Roseto Valfortore (FG), Apulia
    • Completed and grid connected:  17/12/2013
    • Commissioning (Production start):  22/01/2014
    • Typology:  mini-wind System 60kWp
    • Covered area:  ca. 205 m2

Wind turbine model: ARIA Libellula 55 

    • Number of blades:  2 upwind
    • Rated power:  55 kWp
    • Rotor diameter:  18m
    • Tower height:  31m
    • Cut-in wind speed:  3 m/sec.
    • Cut-out wind speed:  25 m/sec.
    • Rated wind speed:  11 m/sec.
    • Power regulation:  Passive pitching (blade-angle adjustment)
    • Energy conversion:  Rotating asynchronous converter and inverter
    • Generators:  Asynchronous generators (4-pole)

Specific annual productivity:  2.439 h/a
@ average annual wind speed AWS of 6,1 m/s and availability of 96%

Annual output (AEP):  134.160 kWh/year

Small Wind Power in action

Advertisements