Presentation on theme: "Mini Grids in Asia Sameer Kalra Sept 30 th, 2010."— Presentation transcript:
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