How Can an RTP Approach Be Used to Assess the Effectiveness of Renewable Energy Projects in Wales?
Anyone familiar with games in the iGaming market will recognise the term RTP, or Return to Player. This theoretical metric measures the expected returns in a game over time. Interestingly, the concept of RTP isn’t limited to iGaming. Indeed, it can also be adapted to assess the efficiency of other systems, such as renewable energy projects.
In Wales, various renewable energy projects are evaluated using an RTP-like metric known as Energy Return on Investment (EROI). This measure assesses the energy generated by a project relative to the energy required to build and maintain it. Based on EROI projections, many sites across Wales are expected to be both sustainable and profitable in the coming years.
What is RTP and How Is EROI Similar?
According to an article that explains how RTP works, it’s the average amount of wagered money that a slot game will return to players over time. Going by this theory, a game with a 95 per cent RTP will pay out £95 for every £100 staked. The main principle is return versus input, which can be applied to various other industries.
In the energy sector, this measurement obviously isn’t referred to as RTP, but there is a similar metric in play. EROI evaluates the energy efficiency of a system by comparing the energy output to the energy input. If the EROI is high, it means that a project is sustainable and generates more energy than it consumes over its lifespan.
Wales is at the forefront of renewable energy adoption, and it’s thanks to using metrics like these to assess the effectiveness of different projects. It means there’s less guesswork in play, and easier to know where best to channel investments.
What Welsh Energy Projects Have Been Assessed Using EROI?
Wind energy is one of the most significant sustainable energy options in Wales, and EROI has been used to assess some of the most promising sites for harvesting this natural resource. Pen y Cymoedd wind farm is the largest of its kind onshore in Wales. It generates 228 MW of electricity, which is enough to power approximately 188,000 homes annually. This is considered a high EROI, meaning that its output massively exceeds the maintenance costs.
Twyn Hywel Wind Farm is an even more exciting project, which aims to deliver 2.1 GW of energy. This would be enough to power a whopping 2.25 million homes, and the site from Bute Energy is set to be fully operational by 2030. EROI metrics have deemed it to be highly sustainable over the long term.
There are also a few proposed solar farms in Wales that are likely to have high EROI and look to be sustainable projects for the future. Trecwn Valley Solar Farm, for instance, is expected to provide clean energy for tens of thousands of homes across the country.
RTP may be rooted in the gaming industry, but the concept has been borrowed by other industries to great effect. The idea of EROI is a fantastic way to assess potential energy projects, and the use of this is why Wales is one of the world leaders in sustainable energy.
Header Photo by Lisa Baker
