Mini Grids in Asia

lettucestewElectronics - Devices

Nov 21, 2013 (3 years and 6 months ago)

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Mini Grids in Asia

Sameer Kalra

Sept 30
th
, 2010

Mini Grid

Definition




“An integrated energy system consisting of
interconnected loads and distributed energy
resources (including generators, energy
storage devices, and smart controls) that can
operate with the utility grid or in an intentional
islanding mode.”

World Electrification Facts

Source: Alliance for Rural Electrification

Developing world remains largely un
-
electrified.

Why Mini Grids?


1.6 billion people across the developing world remain
without electricity


Investment requirements $9.6 trillion in the period 2001 to 2030


India and China are huge countries with diverse terrains


average cost of grid extension per km between $8,000 and
$10,000, rising to around $22,000 in difficult terrains


China builds 1 coal power plant per week


India struggling to bridge gap between supply and
demand


Huge electricity cuts in developing counties, to meet
peak demand


Businesses building Mini Grids to ensure continuous electricity


Technology Choices

1.
Diesel


Pollution


noise / air


Non
-

Renewable


Unsustainable in the long run


High OPEX; transportation challenges


2.
Solar


Most common in Asia


sun is in abundance


High CAPEX; ROI is longer


Storage issues


3.
Wind/Hydro


Not suitable for all terrains


Transmission between point of generation and consumption


Storage issues

Hybrid Mini Grids are optimal

Technology Decision Tree

Source: World Bank

Choose the right technology based on ground conditions

Critical Factors for Project Success


Technology choice


Sustainability


Financing


Affordability


Community
Involvement



Regulatory impact


Environmental
considerations


Opportunities to
initiate and enhance
productive activities
and applications

Case Study 1


Scatec Solar

Solar PV based Mini Grid in 150 households in India


Main challenges


Develop sustainable and scalable
business models (with focus on
local revenue models)


Develop an effective, global
incentive mechanism to facilitate
and accelerate a large
-
scale roll
-
out of CSPPs


Learnings


Govt and community support is
essential


Empowerment and education of
local population




Project financing


Public private model


CAPEX by Scatec Solar


Tariffs based on the price of
kerosene and diesel.


Revenue model = OPEX +
renewable components


Project Outcome


Round the clock electricity


Enhance economic activity and
productivity


Case Study 2


SMA Solar

off
-
grid power supply for 190 villages

Challenge:



Chinese government program to
provide rural areas with
decentralized power supply
systems, mainly PV


Renewable Opportunity


Installation of 190 village
electrification systems with diesel
generator as backup

Financing


German Bank of Reconstruction
and the Chinese Ministry of
Finance


Outcome


Modularity of the system allows
easy system adjustment to the
demands of the energy supplier or
the end
-
users



System integrators like SolarWorld
and Schott Solar are adept at
connecting these new
technologies successfully.


Case Study 3
-

SolarWorld AG


PV
-
based renewable energy to 7000 homes in China

Challenge


Rural Electrification


Renewable Opportunity


Good irradiation condition for
Solar PV


Solution


Multi
-
crystalline solar PV


Backup diesel generator to
reduce battery size


Financing


German Bank of Reconstruction
and the Chinese Ministry of
Finance


Outcome


142 villages with 30,000 people
were electrified

Case Study 4


Urban Township in India


Townships/Building/Malls

Challenge


Intermittent supply of electricity
at peak load



Opportunity


Supply: storage and distributed
generation (renewable and
non
-
renewable sources)


Demand: consumption devices
including lighting, HVAC, and
IT equipment


Energy management platform:
to optimize energy supply and
demand


Environmental factors: such as
weather, pricing, and comfort


Financing


Builders such as Reliance, Nano
City promoters


Outcome


Developments in planning
stages

Entrepreneurial Opportunities


Technology Transfer


Energy Storage


Smart Grids


Renewable
Integration


System integration,
project management


Energy Efficiency



Carbon Management


Building Management


SCADA


Metering Services


S/W for technology
optimization


More opportunities exist in townships/MDUs rather than in rural electrification

Challenges


Scalable and repeatable business models


No cookie cutter models


Land acquisition for solar installations


Cost/kWh for diesel still cheaper than
renewable alternatives


Focus on CAPEX versus OPEX


Country
-
specific utility permitting
requirements


Questions?