A Policy Recommendation for Airborne Wind Energy

Thomas Hårklau CEO Kitemill AS Miltzowsgate 2 5700 Voss Norway th@kitemill.no www.kitemill.com

A Policy Recommendation for Airborne Wind Energy

Kitemill AS The history of the introduction of new energy tech-nologies provides empirical evidence of which strategies works and which fails. Studying the top 10 wind turbine suppliers reveals that all turbine models has been a part of a gradually increase in scale from origin designs <300 kW in the 80s and early 90s. Attempts to jump directly to large scale consequently fail. The lack of the higher subsi-dies offered in early phase of introduction makes later in-troduction more challenging and prevent companies en-tering with new designs.

This paper discusses the main implication of scaling up in small steps from the view of investors, AWE companies, and governments. If smaller scales give negative system performance, apparently, then the return of investments will be lower and the need for subsidy higher. Yet, it is more cost efficient to learn in small scale, for all stake-holders. Historically, solving the drawbacks of introduc-tion cost in small scale is the best strategy.

Kitemill recently sold a pilot plant to the first customer as a proof of commitment from the customer and its fund-ing partners. The same financial model is intended when Kitemill will supply the five first demonstration plants

af-ter sufficient pilot operation. Indicatively, it shows that the current scale of 30 kW is small enough to attract in-vestments.

Operational hours will be one important key to mature the technology. Operational hours need to be accumu-lated for each step, by each single AWE supplier. Then scaling up in small enough steps for the operational ex-perience to be valid for each next iteration.

All new energy capacity is a result of political will and de-termination. It is unlikely for a large technology shift to occur without strong public incentives. The need of sub-sidy each kWh decreases as the scale increase. It is likely that the first wave of AWE technology introduction will be both supported and funded in order to be matured, rather than for its energy yield. Though, subsidies as a function of operational hours to mature the AWE indus-try exponentially increase with introduction scale. So-cial economists will favour smaller scale. AWE companies should optimize the introduction strategy based on this. Kitemill is prepared to support further discussions about policy recommendations and introduction strategies.