PV HYBRID MARKET OPPORTUNITIES IN THE SUNBELT
REGION – APPROACH OF SMA SUNBELT ENERGY GMBH
IN KENYA
+
Diesel Genset
PV
Guluma Megersa
Berlin, 02.09.2015
SMA Sunbelt Energy GmbH
MOTIVATION: WHY IS AFRICA IMPORTANT?
Geographical True Size of Africa
Key economic drivers
•
•
•
•
•
•
Rising level of education
Growing middle class and urbanization
Improved political stability
Abundant natural ressources
Private Public Partnerships
Governmental and international investment
Power supply from photovoltaic systems will support and sustain this economic growth!
However, international players (like SMA) need to be present in the market.
02.09.2015
Approach of SMA Sunbelt Energy GmbH in Kenya, Guluma Megersa
1.IMF, SMA
2
AGENDA
1
Introduction to SMA Sunbelt Energy GmbH
2
Solar PV Market Opportunities in Kenya
3
SMA Strategy in Kenya and Eastern Africa
4
PV Hybrid reference
02.09.2015
Approach of SMA Sunbelt Energy GmbH in Kenya, Guluma Megersa
SMA Sunbelt Energy GmbH 3
1. Introduction 2. PV Market Opportunities in Kenya 3. Sunbelt Strategy in Kenya and Eastern Africa 4. PV References
SMA SOLAR TECHNOLOGY AG AND SMA SUNBELT
ENERGY GMBH
100% compatibility
Polysilicon
Ingot/
Wafer
Cell
Module
Inverter
SMA Solar Technology AG
 Founded: 1981
 Sales 2014: about EUR 800 million
 Total installed global capacity : > 38 Gigawatt
 Employees: > 3,500 all over the globe
 Research and Development Professionals: >500
 Invest R&D 2014: > € 120 Mio.
 German Stock Exchange
Electrical components
e.g. Transformer
Project
Development
Turnkey
O&M
SMA Sunbelt Energy GmbH
 100% affiliated company of SMA Solar
Technology AG and headquartered in Kassel,
Germany
 Provides Project development, turnkey and
O&M1 services for photovoltaic hybrid projects
 Comprehensive project approach based on SMA
Fuel Save Controller Solution
 Closing the project value chain for projects in
Sunbelt markets.
 International innovations awards
02.09.2015
Approach of SMA Sunbelt Energy GmbH in Kenya, Guluma Megersa
1.Operation and Maintenance
4
AGENDA
1
Introduction to SMA Sunbelt Energy GmbH
2
Solar PV Market Opportunities in Kenya
3
SMA Strategy in Kenya and Eastern Africa
4
PV Hybrid References
02.09.2015
Approach of SMA Sunbelt Energy GmbH in Kenya, Guluma Megersa
SMA Sunbelt Energy GmbH 5
1. Introduction 2. PV Market Opportunities in Kenya 3. Sunbelt Strategy in Kenya and Eastern Africa 4. PV References
THERE ARE DIFFERENT APPLICATIONS FOR PV-DIESEL
HYBRID SYSTEMS
Our focus
Utilities/ IPP
(in off-grid/weak-grid regions)
Heavy industries
(e.g. mining, cement)
Remote electrification
(e.g. mini grids from REA)
Agriculture and food processing
(e.g. farming, fish&shrimp, flower farms)
Tourism
(e.g. hotels, holiday resorts)
Remote industries
(in off-grid/weak-grid regions)
Real estate
(e.g. offices, malls, warehouses)
Remote hospitals
(in off-grid/weak-grid regions)
Military
(e.g. off-camps, training facilities, military base
power plants)
Telecom industries
(in off-grid/weak-grid regions)
Focus industries depend on target countries. In Kenya, we primarily focus on Agriculture
02.09.2015
Approach of SMA Sunbelt Energy GmbH in Kenya, Guluma Megersa
SMA Sunbelt Energy GmbH 6
1. Introduction 2. PV Market Opportunities in Kenya 3. Sunbelt Strategy in Kenya and Eastern Africa 4. PV References
PV-DIESEL-HYBRID IS ALREADY A REAL BUSINESS CASE IN
HIGH IRRADIATION REGIONS WITH EFFECTIVE DIESEL
COST > 1 USD/LITER
Payback time (years)
22
20
18
16
14
12
10
8
6
4
2
0
Annual PV full load time
900 kWh/kWp (e.g. Germany)
1200 kWh/kWp (e.g. Italy)
1500 kWh/kWp (e.g. India)
1800 kWh/kWp (e.g. Australia)
2100 kWh/kWp (sunniest spots worldwide)
Financially
attractive area
Diesel cost1 (USD/l)
0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 2.2 2.4
Given the diesel price volatility and genset industry mindset, a short payback time is
crucial.
02.09.2015
Approach of SMA Sunbelt Energy GmbH in Kenya, Guluma Megersa
1. Effective cost at point of consumption including fuel transportation and storage cost etc.
2. Assumptions : 1 MW PV plant; 100% consumption of PV power possible; CapEx=2,000 USD/kWp; OpEx= 2% of CapEx p.a.; PV financing
3. with 30% equity/70% debt with 7% interest rate and amortization time of 5 years; Genset efficiency 3.5 kWh/l (net electricity production); CapEx and
Maintenance cost for Diesel genset not included, since PV is considered as add-on here, not as genset hardware substitution Source: Web search, SMA analysis
7
AGENDA
1
Introduction to SMA Sunbelt Energy GmbH
2
Solar PV Market Opportunities in Kenya
3
SMA Strategy in Kenya and Eastern Africa
4
PV Hybrid References
02.09.2015
Approach of SMA Sunbelt Energy GmbH in Kenya, Guluma Megersa
SMA Sunbelt Energy GmbH 8
1. Introduction 2. PV Market Opportunities in Kenya 3. Sunbelt Strategy in Kenya and Eastern Africa 4. PV References
SMA GOES TO KENYA WITH A HOLISTIC STRATEGY
Products &
Turnkey Offering
Service
Financing
Training
Partnering
02.09.2015
Approach of SMA Sunbelt Energy GmbH in Kenya, Guluma Megersa
SMA Sunbelt Energy GmbH 9
1. Introduction 2. PV Market Opportunities in Kenya 3. Sunbelt Strategy in Kenya and Eastern Africa 4. PV References
SMA OFFERS A DEDICATED PRODUCT PORTFOLIO
FOR THE RELEVANT APPLICATIONS
Application
Utility scale PV
Commercial self-consumption
Off-Grid systems
PV-Diesel hybrid systems
Driver
PPA, FiT1
Reduced energy bill2
Availability of power
Fuel saving3
Sunny Central
MV Power Station
Solutions for utility scale PV
02.09.2015
Sunny Tripower
Sunny Island
Solutions for self-consumption & off-grid
Approach of SMA Sunbelt Energy GmbH in Kenya, Guluma Megersa
Fuel Save Controller
Solutions for industrial hybrid systems
1.Feed-in tariff for PV up to 12 $cent/kWh 2. Electricity tariff up to 30 $cent/kWh
3. LCOE for Diesel Gensets over 30 $cent/kWh , Source: SMA
10
1. Introduction 2. PV Market Opportunities in Kenya 3. Sunbelt Strategy in Kenya and Eastern Africa 4. PV References
SMA SUNBELT ENERGY OFFERS A COMPREHENSIVE
APPROACH TOWARDS HYBRID PROJECTS AND PROVIDES
ONE-STOP FULL-TURNKEY SOLUTIONS
On-site competence
Detailed on-site
analysis
Local presence in all
markets
Financial analysis and
modeling
Diesel and energy
savings
Turnkey offering
Operation &
Maintenance
Engineering and
simulation
Construction
management
02.09.2015
Approach of SMA Sunbelt Energy GmbH in Kenya, Guluma Megersa
Procurement
SMA Sunbelt Energy GmbH 11
AGENDA
1
Introduction to SMA Sunbelt Energy GmbH
2
Solar PV Market Opportunities in Kenya
3
SMA Strategy in Kenya and Eastern Africa
4
PV Hybrid References
02.09.2015
Approach of SMA Sunbelt Energy GmbH in Kenya, Guluma Megersa
SMA Sunbelt Energy GmbH 12
1. Introduction 2. PV Market Opportunities in Kenya 3. Sunbelt Strategy in Kenya and Eastern Africa 4. PV References
SMA´S PV HYBRID REFERENCES WORLDWIDE
6
10
19
9
21 4
22
2
3
15
16 17
20
8
7
11
13
14
12
18
23
5
1
1
South Africa, Mining
7
Kenya, Tea Industry
13
Kenya, Flower Industry
19
Japan, Test System
2
India, Textile Industry
8
Barbados, Food Industry
14
Kenya, Flower Industry
20
India, Paint Industry
3
India, Textile Industry
9
Lebanon, Plastic Manufacturing
15
Taiwan, Test System
21
Arabic Emirates, Island Supply
4
Arabic Emirates, Island Supply
10
Greece, Zoological Park
16
India, Textile Industry
22
Dom. Rep., Distribution Center
5
Tonga, Island Supply
11
Maldives, Island Supply
17
India, Textile Industry
23
Bolivia, City Electrification
6
Germany, University Test System
12
Maldives, Island Supply
18
Samoa, Sports Complex
28 commercial PV-Diesel plants running (March, 2015)
02.09.2015
Approach of SMA Sunbelt Energy GmbH in Kenya, Guluma Megersa
SMA Sunbelt Energy GmbH 13
1. Introduction 2. PV Market Opportunities in Kenya 3. Sunbelt Strategy in Kenya and Eastern Africa 4. PV References
AGRICULTURAL – ELDAMA RAVINE, KENYA
Eldama Ravine, Kenya
 Application:

Flower farm
 Self consumption / fuel saving
 System size:

PV power: 249 kWp (about 250 MWh/a)

Gensets: 1 x 350 kVA, 1 x 150 kVA
 Public grid (no grid feed in)
 PV System Technology

3 Sunny Tripower STP 15000 TLEE

9 Sunny Tripower STP 20000 TLEE
 SMA Fuel Save Controller
 System Information:
02.09.2015
Approach of SMA Sunbelt Energy GmbH in Kenya, Guluma Megersa

Coordinates: 0°4’5“N, 35°44‘44“E

Plant commissioning: October 2014
14
1. Introduction 2. PV Market Opportunities in Kenya 3. Sunbelt Strategy in Kenya and Eastern Africa 4. PV References
DIESEL MINI GRID – COBIJA, BOLIVIA
ENDE1, Cobija, Bolivia
 Application:

Fuel saving for the Diesel Mini Grid of Cobija

10 gensets / approx. 12 MW
 Fuel consumption 18-20 Mio liter / a
 System size:

PV power: 5 MWp

Gensets: 15,000 kVA (10 gensets in total)
 Battery 2.2 MW / 1.16 MWh
 PV System Technology

6 SMA SC 800 CP-XT
 SMA Solar Fuel Save Controller
 System Information:
02.09.2015
Approach of SMA Sunbelt Energy GmbH in Kenya, Guluma Megersa

Coordinates: 11° 1′ S , 68° 45′ W

Plant commissioning: December 2014
1.ENDE = Empresa National de Electricidad
15
1. Introduction 2. PV Market Opportunities in Kenya 3. Sunbelt Strategy in Kenya and Eastern Africa 4. PV References
DIESEL MINI GRID – COBIJA, BOLIVIA
Economics
 Local data1:

Load: stable at 5 MW – 8 MW

Irradiation: 1,900 kWh/m²a

Diesel Costs: 1.2 $ / l

Equity Ratio: 30%2
 Results:

Produced PV Energy: 8,200 MWh / year

Annual fuel savings: approx. 2,2 million liter

Total investment: approx. 12 million USD
 Payback 4,8 years
Quick payback time and secure energy supply
02.09.2015
Approach of SMA Sunbelt Energy GmbH in Kenya, Guluma Megersa
1.Additional data: min. partial load 30%, OpEx (PV) = 2% of CapEx, Genset efficiency=3.5
kWh/liter, Fuel price increase = 5 %/a, Equity ratio = 30%, interest rate for depth = 7%
2.Equity ratio and interest rates (=7%) are just examplary to illustrate the business case.
16
1. Introduction 2. PV Market Opportunities in Kenya 3. Sunbelt Strategy in Kenya and Eastern Africa 4. PV References
MINING – THABAZIMBI, SOUTH AFRICA
Exact monitoring of the plant
 Average load 350 kW
 300 kWp PV power activated
 39% fuel saving during daytime
450
400
350
300
Power (kW)
Performance at a typical day1
 1440 kWh PV energy
 400 liters of diesel savings
 PV output reduction can be observed at noon
250
200
150
100
Energy provided
50
2:36
3:31
4:26
5:21
6:16
7:11
8:06
9:01
9:56
10:51
11:46
12:41
13:36
14:31
15:26
16:21
17:16
18:11
19:06
20:01
20:56
21:51
22:46
23:41
0
P_Gen_AVG [kW]
P_PV_AVG [kW]
61%
P_Load_AVG [kW]
Provided by:
02.09.2015
39%
Approach of SMA Sunbelt Energy GmbH in Kenya, Guluma Megersa
Photovoltaic
Diesel generator
1.Date of this day refer to real measurements of April , 12th 2013
17
1. Introduction 2. PV Market Opportunities in Kenya 3. Sunbelt Strategy in Kenya and Eastern Africa 4. PV References
SMALL COMMERCIAL – SANTIAGO, DOMINICAN
REPUBLIC
Importadora La Plaza, Santiago, DR
 Application:

Warehouse for spare parts
 Blackouts: approx. 3,5h/day
 System size:

PV power: 299 kWp

Gensets: 1 x 225 kVA, 1 x 394 KVA
 Public grid (net metering)
 PV System Technology

12 x SMA Sunny Tripower STP 24000 TL-US
 SMA Solar Fuel Save Controller
 System Information:
02.09.2015
Approach of SMA Sunbelt Energy GmbH in Kenya, Guluma Megersa

Coordinates: 19°28'34''N, 70°41'3.9''W

Plant commissioning: December 2014
1.Barbados Ice Company Ltd www.bicoicecream.com
18
1. Introduction 2. PV Market Opportunities in Kenya 3. Sunbelt Strategy in Kenya and Eastern Africa 4. PV References
SMALL COMMERCIAL – SANTIAGO, DOMINICAN
REPUBLIC
PV Perfomance
 Produced PV energy : 491,7
MWh
 Directly used energy: 248,2 MWh
 Feed-in energy: 243,5 MWh
 Saved OPEX: 115.000 USD / year
 Investment: 580,000 USD
25.02.2015
PV Grid injection
 Payback time: 5 years1
PV Own Consumption
Consumption
Stable business case even for „small“ applications with (unreliable) grid connection
02.09.2015
Approach of SMA Sunbelt Energy GmbH in Kenya, Guluma Megersa
1. min. partial load 30%, OpEx (PV) = 2% of CapEx, Genset efficiency=3.5 kWh/liter, Fuel price= 1,3 US$/l
increase = 5 %/a, net meetiering tariff= 0,24 USD/kWh, Equity ratio = 30%, interest rate for depth = 7%
19
SUMMARY
 Diesel gensets are used for energy production in many
regions and for different applications in Kenya
 Electricity generation costs with PV is lower than with diesel
in many of those regions
 This gap will increase in the future
 Focus regions and applications have both high irradiation
and energy costs
 Upgrading conventional Diesel Genset systems with PV
provides a significant fuel saving potential
 Large scale MW-sized systems are now possible for many
different applications, also with batteries
02.09.2015
Approach of SMA Sunbelt Energy GmbH in Kenya, Guluma Megersa
SMA Sunbelt Energy GmbH 20
Dipl. Wirt. Ing. (FH)
Guluma Megersa, MSc.
Business Development Manager
Off-Grid Sales
Email: Guluma.Megersa@sma.de
Mobile: +49 151 1486 9478
Approach of SMA Sunbelt Energy GmbH in Kenya, Guluma Megersa
SMA Sunbelt Energy GmbH
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