Mini Grids in Asia
Sameer Kalra
Sept 30th, 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
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•
•
Pollution – noise / air
Non- Renewable – Unsustainable in the long run
High OPEX; transportation challenges
2. Solar
•
•
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Most common in Asia – sun is in abundance
High CAPEX; ROI is longer
Storage issues
3. Wind/Hydro
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•
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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
•
•
•
•
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Technology choice • Regulatory impact
Sustainability
• Environmental
considerations
Financing
• Opportunities to
Affordability
initiate and enhance
Community
productive activities
Involvement
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 rollout of CSPPs
Project financing
• Public private model
• CAPEX by Scatec Solar
• Tariffs based on the price of
kerosene and diesel.
• Revenue model = OPEX +
renewable components
Learnings
• Govt and community support is
essential
• Empowerment and education of
local population
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
Financing
•
Builders such as Reliance, Nano
City promoters
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
Outcome
•
Developments in planning
stages
Entrepreneurial Opportunities
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•
•
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Technology Transfer
Energy Storage
Smart Grids
Renewable
Integration
• System integration,
project management
• Energy Efficiency
•
•
•
•
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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?