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

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 Fiji Background

4

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$/kWh): [1 F$  0.5 US$]

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

7

8

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

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 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 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

13

14

15

16

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 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)

19

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 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 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 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 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%

25

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%

27

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.

29

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

31

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 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

34

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%

36

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 H 2 from hydrocarbons

39

40 H 2 from Water

41

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

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

54 Nabouwalu Post Office: Pre-payment Cards

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

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

Vunivau, Fiji

Renewable Energy Service Companies for Solar Home Systems

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 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 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 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

63

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 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