Distributed generation fund
Distributed electricity generation can provide a number of benefits, including reduced transmission costs, added energy security for communities, better environmental outcomes (compared to large scale generation), increased competition in the electricity market and job creation.
Aims of the distributed generation fund
The Distributed Generation Fund is set up to assist potential DG project developers investigate a particular DG project in New Zealand. The Distributed Generation Fund can help verify whether the DG project in question can be a viable and sound investment.
Under the fund, EECA will provide part-funding to assist with the completion of feasibility studies to investigate DG projects which utilise renewable energy sources, for example, small-scale wind energy schemes, bioenergy, geothermal, solar, or hydro energy projects.
Proposals are welcome for projects that generate electricity, or both electricity and heat in a cogeneration process. Proposals covering off-grid generation projects, where there is no connection to the local distribution network, are also welcomed.
The feasibility fund had the following objectives:
- Address an information barrier
Potential developers sometimes find it difficult to identify suitable project opportunities, or verify that a project is likely to be commercially viable - Facilitate and test the distributed generation market
To demonstrate potential niches for economic, or close-to-economic distributed generation projects in New Zealand - Improve understanding of barriers to distributed generation
How to apply
There is one competitive DG Fund grant funding round each year. Each funding round will be notified on this website and on the Government Electronic Tenders Service (GETS).
The current funding round closes on 8 October 2009.
Download the DG Fund Definition Document here
Download the DG Fund RFP document here
Previous funding rounds
In 2008 EECA ran a pilot feasibility study fund to help facilitate the uptake of distributed generation projects in New Zealand. Funding was allocated to 17 successful projects.
Funded feasibility studies
The successful projects are summarised below.
Woody biomass cogeneration project. This project investigates the supply of process heat and electricity from a woody biomass-fuelled cogeneration plant to be built at a major industrial site. The boiler is likely to be over 10MW in size, and using biomass directly will replace the use of gas. The project is being investigated by Energy for Industry Ltd.
The Duelling Banjos Vineyard wind project. This project investigates the viability of installing a small-scale distributed wind farm on an existing vineyard in the Marlborough region. The landowners will be the co-developers of the project. If built, the project could be approximately 2.4MW in size and power from the wind turbines would be used onsite and also for sale into 33kV Marlborough Lines distribution network. The project is being investigated by Energy3 Ltd.
Binary cycle generator. This project investigates the use of a binary cycle generator to capture and use waste heat that is otherwise sent into the atmosphere in the flue gases from the existing biogas cogeneration engines. The generator could be up to 250kW in capacity, and has the potential to be replicated modularly in other locations where there is a source of low-grade heat that was previously thought uneconomic to recover. The project is being investigated by Watercare Services Ltd.
Geothermal energy project. This project investigates the use of geothermal energy for heat and electricity generation on an industrial site. The project is being investigated by Fonterra.
Grid-integrated biogas project. This project investigates a potential biogas generation project using waste and by-products. The feasibility study will include focus on developing a partnership model seeking to maximise benefits and manage energy flows, and looks at how advanced management of the plant could potentially assist with peak load shedding and other potential network benefits. The project is being investigated by Wel Networks Ltd.
Waiau wind farm. This project investigates the feasibility of a small wind farm based in North Canterbury using imported second-hand turbines. The project could be up to 5MW in capacity, would help meet the local electricity demand load in the region. The project is being investigated by MainPower New Zealand Ltd.
Biogas plant at a factory in Christchurch. This project investigates the feasibility of using waste products to generate heat and electricity, while at the same time improving the sustainability of the clients operation. The project could have an installed capacity of over 600kW. The project is being investigated by Biogas Energy Ltd.
Low-head run-of-river hydro. This project investigates the viability of building a run-of-river hydro scheme on the Chatham Islands' Te Awainanga river. Electricity on the Chatham Islands is currently generated by diesel generators, and costs are above 70c/kWh. This project may be an affordable means of helping to lower these costs. The project could have an installed capacity of around 50kW. The project is being investigated by Chatham Islands Electricity Ltd.
Blackball Creek hydro project. This project investigates the feasibility of building a mini-hydro project as affordable means of supplying power to the Blackball community, and to create financial support for future development of the area. The scheme could utilise an historic water race route, and may be suitable to drive a medium-head hydro turbine of approximately 500kW in capacity. The project is being investigated by Keane Associates Ltd.
Community owned wind project. This project investigates the feasibility of a community-owned wind cluster of between one and five medium-sized wind turbines, located on Banks Peninsula. The project could be approximately 2.5MW in capacity. The project is being investigated by Project Lyttelton Wind Initiative group.
Marlborough wind project. This project investigates the commercial potential of a wind project in the Marlborough region. The capacity of this project could be up to 10MW. The project is being investigated by the Balfour Partnership Ltd
Low temperature geothermal. This project investigates the application of binary cycle generation on a low temperature geothermal resource. The project is being investigated by East Harbour Management Services Ltd.
Decommissioned hydro infrastructure. This project will investigate the feasibility of recommissioning an abandoned hydro station on the outskirts of Taihape. The existing dam, tunnel, and headworks of the hydro plant were last used in 1958, and if they can be recommissioned the upfront costs of the project could be greatly reduced. The recommissioned plant could be up to 1MW in capacity. The project is being investigated by the Taihape Community Development Trust.
Mini hydro scheme. This project will investigate the potential for installing a 35kW hydro turbine for the community of Waihi, near Lake Taupo. By using existing infrastructure, the hydro project could be relatively cost-effective, and employ a reliable local resource with significant benefits for the community. The project is being investigated by NIWA.
Micro-hydro in water reticulation. This project will investigate the potential for installed micro-hydro in the bulk water distribution network, where valves are currently used to reduce pressure and control water flow into reservoirs. Where there is sufficient pressure and flow available, micro hydro turbines could be used to recover energy by generating electrical power. The micro-hydro turbines could vary in size from 20kW to 45kW. The project is being investigation by the Water Supply Department of Greater Wellington Regional Council, with the assistance of Better Technical Options Ltd.
Waianakarua wind project. This funding will allow investigation into the installation of small-scale wind turbines. The wind project is estimated to have an capacity of approximately 600kW and would use a new wind modelling technique to assess viability. The communities that the project would immediately service are at the end of a ‘spur' line. The project is being investigated by Network Waitaki Ltd, a consumer trust-owned electricity lines company.
Rural farm hydro scheme. This project investigates the feasibility of developing a mini hydro scheme on a farm in the Bay of Plenty. Two turbines, with a potential capacity of up to 650kW are being considered. This project is being investigated by Barry and Alicia Roberts.
Further information
If you wish to be kept up to date on information about the next funding round, please contact distributedenergy@eeca.govt.nz
For more information about other potential sources of funding see the full list of EECA funding.
