PV grid penetration in public grid Kosrae Utility Authority APAC – ADB meeting Manilla Fred Skilling - CEO June 2011

Kosrae – Key Energy Statistics KUA key statistics (2009 / 2010) Country Population8,300 Total Utility Customers1,903 Total Utility Staff23 Electricity Access %95 System Peak Demand MW1.120 (currently increase) Total Line Loss %15.19 Annual Generation MWh6,188,752 Annual Sales MWh5,248,361 Annual Fuel Consumption (million litres)436,800 Gals or 1,653,463 Liters Current Fuel Price US$ per litre$ / Gal. or / L Av Residential Elec Tariff >100kWh in US$0.38 Av Revenue per kWh sold US$0.43 Operating Cost to Customer US$1,526 Staff to Customer Ratio0.012 (1 to 83 customers) Fuel Efficiency kWh per liter kWh/Gal (generation) 12.07(to customer) Generation Plant Availability %94 System Load Factor88.06

Current situation in Kosrae

Energy Action Plans of Kosrae State AIM : become less dependent on imported fossil fuels Provide affordable and stable electricity to all Kosrae households and business BY: Introducing more RE sources Improving the grid-efficiency

Energy Action Plans – RE section Total Capacity that KUA want to install is 400 kWh / 2009 action plans mentioned a gradually approach but can be speed-up after evaluating existing installations. under EDF-9 -> 56 kWp installed and results very satisfying. Phase 1: PV grid connected plant at KUA, ground mounted 200 kWp. Phase 2: 100 kWp at government buildings and upgrade of KUA’s plant with another 100 kWp

Ongoing 1.5 MW Wave energy power plant IPP structure under a PPA with KUA Estimated purchase kWh rate: USD / kWh Generation cost: 0.02 USD / kWh Operation of wave power plant: end 2011

Kosrae’s Approach 2 high priority projects on action plan:  1 st Grid – connected solar  2 nd wave energy KUA has started preparing both projects in the meanwhile looking for other solutions for other technologies KUA has started planning for IPPs (Solar-Wind Hybrid etc) Work parallel on all these projects

Funding for the additional 400 kWp PV Rough price estimate: US$ 2,400,000 ($6,000/kWp) Project implementation in two phases: kWp with EU EDF-10 funding (= $900,000) kWp with either use of the Japan PEC fund or a combination of a grant and a loan as matching grant. KUA is also stimulating private investors to start an IPP (Independent Power Producer) under a PPA (Power Purchase Agreement) arrangement  Interest in this is showed by two PV companies

Kosrae’s picture for 2012

Why KUA’s interest in Renewable Energy ? Before 2008 => 100% dependent on diesel In 2008 => installed 52.5 kWp PV grid connected solar on 5 different locations: 1 car park shading and 4 rooftop installations Results for utility very satisfactory Wave Energy: generating cost very low => IPP  Becoming less dependent on expensive imported fossil fuels!  Provide electricity to KUA’s customers' for an affordable rate

Why Grid connected PV? The sun is the best-measured renewable energy resource in the pacific countries Crystalline PV modules have a proven track record in the pacific Amorphous panels are being introduced as test in Kosrae in 2008 (1 kWp) Suited for Pacific context of limited land availability: no additional land required if the PV arrays are on roofs Scalable technology Low maintenance, as there are no batteries

PV prices are coming down! In 2008… World prices Niue: 6.76 €/Wp Kosrae: 8.17 €/Wp

Grid connected PV in Kosrae The previous table showed prices in Euro Today the price of grid connected PV solar (installed) is between USD 4.50 / Wp and USD 6.75 / Wp  installed in the Pacific. This means that from 8 euro (= USD 11.25) the price went down to USD 5.50 or more than 40% !

Current trend… Currently, projects in the Pacific can expect: PV modules: 3.00 – 4.00 US$/Wp Inverters: 0.50 US$/W Installed systems: 5.50 US$/Wp And these prices are going down…

PV Grid connected systems in Kosrae Country/stateSystem sizesTotal capacity Installation date Kosrae 6 systems 1 – 16.4 kWp 53.5 kWpSeptember 2008

System Overview Crystalline modules chosen for their proven track record One small system with Amorphous modules (1kW) Extended warranties purchased on all inverters Total of 6 systems: 5 are roof-mounted and 1 is on car park shading Data loggers installed on all systems

Price per kWh (current rate in Kosrae: 39 US¢/kWh SystemCost of generation (incl. initial capital cost) Cost of generation (excl. initial capital cost) Current Systems: 45 US¢/kWh3.4 US¢/kWh Using Current price of PV 18 US¢/kWh Yes indeed… installing Grid Connected PV is a financially attractive alternative!

Current Systems 52.5 kWp installed on roofs of airport, legislature, hospital, governor’s office, and KUA car park 1 kWp installed on the recycling plant Installed in September 2008 Average production 5,800 kWh/mo. Specific yield: 1,340 kWh/kWp/yr

Energy Assessment Issues Raised 1- Supply and Installation of 5 PV Grid-Connected Systems: Faulty Inverter at the Airport installation 2- Maintenance of the PV Systems: Issue of the Solar PV Tariff system. 3- Monitoring of PV Systems: Monitoring of the 5 PV grid-connected systems. 4- Project Impacts: Beneficiaries and Public awareness and perception of the PV systems.

Existing PV System’s Present Status as Monitored Faulty Inverter at airport installation was replaced in November No problems since Solar panels are guaranteed for 20 years, Inverters and other electronic equipments are guaranteed for 5 years On line monitoring of the PV grid-connected systems not yet in operation but high on the wish list All systems are performing well and as utility we are keen to increase the PV penetration to 500 kWp Awareness and information to end-users important Next slide will give you an overview of the performance of the PV systems

Airport

Airport System kWh (Grid) kWh (PV) Total kWh Total $ Total w/o PVSavings kWh Rate ,500 $ 19, ,240 $ 16, ,300 10,080 55,380 $ 18,468 $ 22,577 $ 4, ,520 5,920 50,440 $ 18,911 $ 21,426 $ 2,

Airport - Cont. Year Savings for consumer 08/09$ 4,109 09/10 $ 2,515

KUA’s car-park system

kWh (Grid) kWh (PV) Total kWh Total $$ Total w/o PVSavings Rate ,062 $ 5, ,210 $ 4, ,910 6,993 28,903 $ 8,621 $ 11,372 $ 2, ,422 4,107 29,529 $10,384 $ 12,061 $ 1, KUA car park system

KUA – Cont. YearSavings for consumer 08/09 $ 2,751 09/10 $ 1,677

Governor’s office

kWh (Grid) kWh (PV) Total kWh Total $$ Total w/o PVSavings Rate ,960 $ 20, ,760 $ 18, ,400 22,680 99,080 $ 32,282 $ 41,864 $ 9, ,280 13, ,600 $ 37,727 $ 43,001 $ 5,

Governor's office – Cont. yearSavings for consumer 08/09 $ 9,583 09/10 $ 5,274

Hospital

Hospital System kWh (Grid) kWh (PV)Total kWh Total $$ Total w/o PVSavings Rate ,843 $ 13, ,159 $ 16, ,192 32,760 93,952 $ 24,280 $ 37,280 $ 13, ,549 19, ,789 $ 33,042 $ 40,561 $ 7,

Hospital – cont. YearSavings for the Customer 08/09 $ 13,000 09/10 $ 7,519

Legislature office

Legislator office system kWh (Grid) kWh (PV) Total kWh Total $$ Total w/o PVSavingsRate ,974 $ 4, ,947 $ 3, ,809 23,310 33,119 $ 3,689 $ 12,455 $ 8, ,944 13,690 31,634 $ 6,908 $ 12,177 $ 5,

Legislature – Cont. YearSavings for the Customer 08/09 $ 8,766 09/10 $ 5,269

Generation till end 2010

Total (2009 – 2010) for the 5 buildings

2011 – 1 st and 2 nd quarter Area kWh (Grid) kWh (PV) Total kWh Total $$ Total w/o PVSavings Legislature8,7145,78414,1983,7576,2082,451 Hospital44,94910,10855,05719,65324,0874,434 Airport24,9005,10930,00910,82513,0692,245 KUA10,0543,32613,3804,3605,7941,434 Governor44,7208,05652,77619,58223,1093,527 Total133,33732,383165,42058,17672,26814,092 AllkWh (Grid)kWh (Sol)Total kWh 133,33732,383165,420 Total (1st & 2nd Qtr) 80%20%

KUA’s and Kosrae’s future Between → 57% renewable In 2015 ….

Kosrae’s picture for 2015 PV – 20 % Wind – 5% Wave – 50 % Diesel – 25% In other words: 75% renewable

Concluding note: PV grid connected solar systems is a viable option for Kosrae 1 st phase additional kWp 2 nd phase kWp 1.5 MW Wave Power plant in progress Kosrae and KUA are actively looking for energy efficiency measurements – DSM and SSM KUA interested in SMART-grid Together we are working on becoming less dependent on the pollutive and expensive fossil fuel

Thank You Kulo Maluhlap