PV Hybrid Market Opportunities in the Sunbelt region ... HYBRID MARKET OPPORTUNITIES IN THE SUNBELT...

PV HYBRID MARKET OPPORTUNITIES IN THE SUNBELT REGION – APPROACH OF SMA SUNBELT ENERGY GMBH IN KENYA

SMA Sunbelt Energy GmbH

Diesel Genset PV

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Guluma Megersa Berlin, 02.09.2015

MOTIVATION: WHY IS AFRICA IMPORTANT?

02.09.2015 2 1.IMF, SMA

Power supply from photovoltaic systems will support and sustain this economic growth! However, international players (like SMA) need to be present in the market.

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

Approach of SMA Sunbelt Energy GmbH in Kenya, Guluma Megersa

AGENDA

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Introduction to SMA Sunbelt Energy GmbH

Solar PV Market Opportunities in Kenya

SMA Strategy in Kenya and Eastern Africa

PV Hybrid reference

Approach of SMA Sunbelt Energy GmbH in Kenya, Guluma Megersa SMA Sunbelt Energy GmbH

SMA SOLAR TECHNOLOGY AG AND SMA SUNBELT ENERGY GMBH

02.09.2015 4 1.Operation and Maintenance Approach of SMA Sunbelt Energy GmbH in Kenya, Guluma Megersa

Turnkey Module Electrical components

e.g. Transformer Inverter Project

Development Polysilicon

Ingot/ Wafer

Cell

100% compatibility

O&M

SMA Solar Technology AG SMA Sunbelt Energy GmbH

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

International innovations awards

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.

1. Introduction 2. PV Market Opportunities in Kenya 3. Sunbelt Strategy in Kenya and Eastern Africa 4. PV References

http://www.sma.de/produkte/solar-wechselrichter-ohne-transformator/sunny-tripower-8000tl-10000tl-12000tl-15000tl-17000tl.html

AGENDA

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PV Hybrid References


THERE ARE DIFFERENT APPLICATIONS FOR PV-DIESEL HYBRID SYSTEMS

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Focus industries depend on target countries. In Kenya, we primarily focus on Agriculture


Utilities/ IPP

(in off-grid/weak-grid regions)

Remote hospitals


Remote electrification (e.g. mini grids from REA)

Heavy industries (e.g. mining, cement)

Agriculture and food processing (e.g. farming, fish&shrimp, flower farms)

Military (e.g. off-camps, training facilities, military base power plants)

Real estate (e.g. offices, malls, warehouses)

Remote industries


Telecom industries (in off-grid/weak-grid regions)

Tourism (e.g. hotels, holiday resorts)

Our focus



02.09.2015

PV-DIESEL-HYBRID IS ALREADY A REAL BUSINESS CASE IN HIGH IRRADIATION REGIONS WITH EFFECTIVE DIESEL COST > 1 USD/LITER

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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

Given the diesel price volatility and genset industry mindset, a short payback time is crucial.


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Payback time (years)

Diesel cost1 (USD/l)

2.4 2.2 2.0 1.8 1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0

Annual PV full load time

Financially attractive area

2100 kWh/kWp (sunniest spots worldwide)

1800 kWh/kWp (e.g. Australia)

1500 kWh/kWp (e.g. India)

1200 kWh/kWp (e.g. Italy)

900 kWh/kWp (e.g. Germany)


AGENDA

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SMA GOES TO KENYA WITH A HOLISTIC STRATEGY

02.09.2015 9 Approach of SMA Sunbelt Energy GmbH in Kenya, Guluma Megersa

Products & Turnkey Offering

Service

Financing Training

Partnering



SMA OFFERS A DEDICATED PRODUCT PORTFOLIO FOR THE RELEVANT APPLICATIONS

02.09.2015 10 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 Approach of SMA Sunbelt Energy GmbH in Kenya, Guluma Megersa

Utility scale PV Commercial self-consumption Off-Grid systems PV-Diesel hybrid systems Application

Driver PPA, FiT1 Reduced energy bill2 Availability of power Fuel saving3

Sunny Tripower Sunny Central MV Power Station Sunny Island

Solutions for utility scale PV

Fuel Save Controller

Solutions for self-consumption & off-grid Solutions for industrial hybrid systems


https://www.youtube.com/watch?v=eK73eXvXRvE

https://www.youtube.com/watch?v=0Uz3_TIVyMk

http://www.sma.de/produkte/solar-wechselrichter-ohne-transformator/sunny-tripower-8000tl-10000tl-12000tl-15000tl-17000tl.html

SMA SUNBELT ENERGY OFFERS A COMPREHENSIVE APPROACH TOWARDS HYBRID PROJECTS AND PROVIDES ONE-STOP FULL-TURNKEY SOLUTIONS

02.09.2015 11 Approach of SMA Sunbelt Energy GmbH in Kenya, Guluma Megersa

Local presence in all markets

On-site competence Detailed on-site analysis

Financial analysis and modeling

Turnkey offering

Engineering and simulation

Procurement Construction management

Operation & Maintenance

Diesel and energy savings



AGENDA

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SMA´S PV HYBRID REFERENCES WORLDWIDE

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28 commercial PV-Diesel plants running (March, 2015)


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1 South Africa, Mining

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4 Arabic Emirates, Island Supply

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India, Textile Industry


Tonga, Island Supply

Germany, University Test System

Kenya, Tea Industry

Barbados, Food Industry

Lebanon, Plastic Manufacturing

Greece, Zoological Park

Maldives, Island Supply

Maldives, Island Supply

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Kenya, Flower Industry

Kenya, Flower Industry

Taiwan, Test System



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18 Samoa, Sports Complex

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Japan, Test System

India, Paint Industry

Arabic Emirates, Island Supply

Dom. Rep., Distribution Center

Bolivia, City Electrification

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02.09.2015 SMA Sunbelt Energy GmbH


AGRICULTURAL – ELDAMA RAVINE, KENYA

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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:

Coordinates: 0°4’5“N, 35°44‘44“E

Plant commissioning: October 2014

Approach of SMA Sunbelt Energy GmbH in Kenya, Guluma Megersa 02.09.2015


DIESEL MINI GRID – COBIJA, BOLIVIA

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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:

Coordinates: 11° 1′ S , 68° 45′ W

Plant commissioning: December 2014

02.09.2015


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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.

Quick payback time and secure energy supply


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

DIESEL MINI GRID – COBIJA, BOLIVIA

02.09.2015


17 1.Date of this day refer to real measurements of April , 12th 2013

Exact monitoring of the plant Performance at a typical day1

Average load 350 kW

300 kWp PV power activated

39% fuel saving during daytime

1440 kWh PV energy

400 liters of diesel savings

PV output reduction can be observed at noon

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Pow

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kW)

P_Gen_AVG [kW] P_PV_AVG [kW] P_Load_AVG [kW]

39%

61%

Energy provided

Photovoltaic Diesel generatorProvided by:

MINING – THABAZIMBI, SOUTH AFRICA

Approach of SMA Sunbelt Energy GmbH in Kenya, Guluma Megersa 02.09.2015


18 1.Barbados Ice Company Ltd www.bicoicecream.com

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:

Coordinates: 19°28'34''N, 70°41'3.9''W

Plant commissioning: December 2014


SMALL COMMERCIAL – SANTIAGO, DOMINICAN REPUBLIC

02.09.2015


SMALL COMMERCIAL – SANTIAGO, DOMINICAN REPUBLIC

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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%

Stable business case even for „small“ applications with (unreliable) grid connection

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

Payback time: 5 years1


PV Grid injection

PV Own Consumption

Consumption

25.02.2015


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

SUMMARY

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Approach of SMA Sunbelt Energy GmbH in Kenya, Guluma Megersa 02.09.2015 SMA Sunbelt Energy GmbH


Dipl. Wirt. Ing. (FH)

Guluma Megersa, MSc.

Business Development Manager Off-Grid Sales Email: [email protected] Mobile: +49 151 1486 9478

SOCIAL MEDIA www.SMA.de/Newsroom

PV Hybrid Market Opportunities in the Sunbelt region ... HYBRID MARKET OPPORTUNITIES IN THE SUNBELT...

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