1. Fiji: Distributed Generation and Energy Storage Makereta Sauturaga Director, Fiji Department of Energy Luis A. Vega, Ph.D. PICHTR

2. 2 Table of Contents Fiji Background Energy Consumption Electricity & Energy Storage National Grid (c/o Fiji Electricity Authority) Distributed: Rural Sector (c/o Department of Energy) Future: Grid Connected Renewable Energy Systems H 2 Fuel Cells Wind/PV Hybrid and Solar Home Systems (SHSs) Energy Service Companies for SHSs

3. 3 Fiji Background

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5. 5 Fiji Population (‘02):826,300 GDP/Capita (‘02):F$ 4,200 Power-Purchase-Parity:F$ 9,900 Annual Inflation (‘00-’03): 1.5 to 3 % National Tariff (F$/kWh): 0.206 [1 F$  0.5 US$]

6. 6 Energy Consumption Pacific Islands annual per capita energy consumption (‘90) Fiji  1,030 kgoe (43 MJ) Fiji Percentage Energy Consumption by Source (’90-’00): Biomass, Petroleum, Hydro Biomass Sources

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9. 9 Biomass Energy (2001) Bagasse42% Household Fuelwood39% Agro/Industrial Fuelwood 9% Coconut Husks10%

10. 10 Electricity & Energy Storage Fiji Electricity Authority (FEA) National Grid –Hydropower; Diesel; Bagasse. Fiji Department of Energy (FDoE) Distributed: Rural Sector –Diesel; Microhydro; Wind/PV Hybrid; PV-lighting (Solar Home Systems).

11. 11 FEA National Grid Five separate grids: 675 GWh/year - Viti Levu Interconnected System (VLIS) & Rakiraki: 93% - Ovalau: 1.5% - Labasa (Vanua Levu): 4.5% - Savusavu (Vanau Levu): 1% Storage: Monasavu Dam/ Wailoa Hydropower (80 MW)

12. 12 Monasavu Dam Storage Nadrau Plateau  900 m ASL Nominal Depth  80 m (x 670 Ha) Catchment Area  110 km 2 11 kV  132 kV 140 km transmission to Suva

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17. 17 Distributed Generation (FDoE) 470 microgrid Diesel (  15 kW): 4 hrs/day, 50 houses/village, 5 people/house 3.4 GWh/year (  0.5 % FEA) 5 Provincial Centers minigrid diesel: 12 to 24 hrs/day 1 GWh/year 5 run-of-river Microhydro (< 100 kW) 4 hrs/day 0.4 GWh/day

18. 18 Distributed Generation (FDoE) Nabouwalu Wind/PV Hybrid 0.15 GWh/year 490 Solar Home System (SHS) Units 0.04 GWh/year [SHS Potential: 1 GWh/year] Storage: Chemical (lead acid batteries)

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20. 20 Future Grid Connected Renewable Energy Systems H 2 Fuel Cells Wind/PV Hybrid and Solar Home Systems (SHSs) Energy Service Companies for SHSs

21. 21 Feasibility of Grid-Connected Renewable Energy Systems Estimate cost-of-electricity (COE) production with different technologies (excluding transmission) National Tariff: 10 US-cents/kWh Avoided Cost:6.5 US-cents/kWh [1 F$  0.5 US$]

22. 22 Cost of Electricity Production COE ($/kWh) = CC + OMR&R + Fuel + Profit - Environmental Credit CC = Capital Cost Amortization OMR&R = Operations + Maintenance + Repair + Replacement Tariff = COE - Subsidy

23. 23 Grid Technologies Well-Established: Wind Farms, PV Arrays, Biomass as fuel in Thermal Plant, Hydroelectric, Geothermal Future: Ocean Thermal Energy Conversion (OTEC) and Wave Power CC  Installed Capital Cost

24. 24 COE with 5 to 20 MW Wind Farms CC: US$1140/kW Annual-Average-Wind-Speed of 9 m/s corresponds to Capacity Factor (CF) of 43% Annual-Average-Wind-Speed of 7 m/s corresponds to CF of 25%

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26. 26 COE with 1 MW PV Array CC: US$6500/kW [PV panels with Inverter] Use Annual-Average-Daily-Insolation around Nadi Airport corresponding to Capacity Factor (CF) of 21%

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28. 28 COE with 50 MW Thermal Plant using Biomass as Fuel CC: US$2000/kW using biomass with heat value of 12,000 Btu/kWh at 2 US$/MBtu Seasonal operation results in 50 % capacity factor.

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30. 30 COE with 100 MW Grid-Connected Hydroelectric Plant CC : US$2000/kW. A conservative capacity factor of 45 % is assumed with operation and maintenance cost at 0.5 cents/kWh The COE is highly dependent on site characteristics Land Issue a tremendous challenge

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32. 32 COE with 5 to 50 MW Geothermal Plants To produce electricity the geothermal resource must be about 250  C Presently in California and Hawaii COE: 4 to 8 US-cents/kWh

33. 33 COE with 100 MW OTEC Plant Extrapolation from small experimental plant operations in Hawaii by PICHTR CC: US$4500/kW; CC is highly dependent on plant size, do not use this value for smaller plants Temperature difference  22  C and plantship moored  10 km offshore

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35. 35 COE with 1 MW Wave Power Plant Projected estimates from Norwegian land-based experimental plants CC: US$4000/kW Average incident wave power of 35 kW/m at shoreline and relatively high capacity factor of 60%

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37. H 2 : Fiji Perspective Available from hydrocarbons and water H 2 is energy carrier not energy source Energy transport by electrons much more efficient that H 2 energy transport Future viability as energy storage alternative to batteries (village power)?

38. 38 H 2 from hydrocarbons

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40. 40 H 2 from Water

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42. 42 Hydrogen from Electrolysis 75% of Electrical Energy lost through Electrolyzer/Fuel Cell Would need 4 WTGs to meet electrical load instead of 1 WTG Energy Storage (electrical  chemical  electrical) Lead Acid Battery   75% Electrolyzer/Fuel Cell   25%

43. 43 Fuel Cells Conclusions What is your source of H 2 ? Why use fossil-fuel to produce H 2 to generate electricity? Why use electricity to generate H 2 (electrolysis) to produce electricity?

44. 44 FEA Future Develop Wind-Farms, Hydroelectric, Biomass or Geothermal Systems if appropriate resource available PV Cost must decrease by > 50% before grid-connected systems are cost competitive OTEC and Wave Power systems are promising

45. 45 FEA Challenge: Conservation and Renewables Demand side management conservation measures (FEA and FDoE) FEA in process of identifying a site for a 10 MW Wind Farm (grid-connected) Resolution of Hydroelectric-Dam Land Issues

46. 46 Distributed Generation & Energy Storage Future c/o FDoE (with PICHTR as advisor) Implementation of 1000’s of stand alone SHSs and 100’s PV-Hybrids for non-FEA areas

47. 47 FDoE Funding Challenge US$ 17 Million required for the installation of  12,000 SHSs: where can the Fijian Government obtain this amount and in the form of concessionary loans with terms that result in monthly service fees of about F$20 (~ US$10)?

48. 48 Renewable-Energy-Based-Rural- Electrification (RERE) Locations where FEA grid extension not cost effective – Remote villages using benzene lamps, dry-cell batteries ($5 to $20/month) … [PV Lights?] –Provincial centers with genset mini- grid (COE > 0.5 $/kWh)… [ Hybrids?]

49. 49 FDoE RERE Goals Implement Commercially Viable Energy Services for Sustainable Development Commercial viability  service is provided for a fee that covers all life-cycle costs; and, fee is collectable

50. 50 Demonstration Projects with PICHTR Nabouwalu (Fiji) 720 kWh/day Wind/PV Hybrid Power System Vanua Levu(Fiji) 250 Solar Home Systems Technical Training: Energy Specialists; PV and Wind Technicians

51. 51 Nabouwalu Hybrid System 720 kWh/day Wind/PV Hybrid System at Provincial Center (24/7) –60% from renewable energy (1998) down to 15% by 2002 (human infrastructure issue) –Tariff ~ 1/5 C.O.E. disregards RE Policy

52. 52 40 kW PV 1 of 8 WTGs Transformer Power House Nabouwalu, Fiji

53. 53 Step-up Transformer Gensets Battery Controls PV Nabouwalu, Fiji

54. 54 Nabouwalu Post Office: Pre-payment Cards

55. 55 Solar Home Systems (SHSs) Entry level in Fiji: – 200 Wh/day (evening hours):  100 Wp of PV panels  100 Ah, 12 V deep cycle battery  charge controller  pre-payment meter

56. Vunivau, Fiji Rice Farmers Nabouwalu, 1-hr Labasa, 2-hrs

57. Vunivau, Fiji

58. Renewable Energy Service Companies for Solar Home Systems

59. 59 SHS Conclusions Actual field experience operating 250 SHSs in Vanua Levu were used to establish requirements {systems are maintained by a private company operating as a RESCO under contract to determine the true cost of system operation as well as appropriate staffing requirements}

60. 60 SHS Conclusions (continuation) SHS Commercial viability  service provided for a fee that covers all life-cycle costs associated with providing that service and fee is collectable

61. 61 SHS Conclusions: Financial Feasibility Financing of SHSs feasible at least under two scenarios: (1)Concessionary loan (e.g., Government of Japan) with tariff covering all costs (2)Fiji Government: 90% capital subsidy; balance through commercial loan and recurring cost covered by tariff {2nd scenario allows about 300 installations yearly but 12,000 potential users}

62. 62 Village Surveys 38% of the households  F$20/month in fuels used for lights and dry cell batteries for radios Extrapolation to all Rural-Electrification applicants indicates that  4500 households could afford F$20/month. And  7500 more could use SHS for lower fee ________ F$20 = US$10

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64. 64 Funding Challenge US$ 17 Million required for the installation of  12,000 SHSs: where can the Fijian Government obtain this amount and in the form of concessionary loans with terms that result in monthly service fees of about F$20 (~ US$10)?

65. 65 APEC Economies: Opportunities Minimal rural infrastructure in Fiji  opportunities for new renewable/storage energy technologies Fiji Department of Energy and PICHTR provide a working partnership