Mini Grids in AsiaSameer 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 Choices1. Diesel
• Pollution – noise / air• Non- Renewable – Unsustainable in the long run• High OPEX; transportation challenges
2. Solar• Most common in Asia – sun is in abundance• High CAPEX; ROI is longer• Storage issues
3. Wind/Hydro• 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
• Technology choice
• Sustainability
• Financing
• Affordability
• Community Involvement
• Regulatory impact• Environmental
considerations• Opportunities to
initiate and enhance productive activities and applications
Case Study 1 – Scatec SolarSolar 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 roll-out of CSPPs
Learnings
• Govt and community support is essential
• Empowerment and education of local population
Project financing
• Public private model
• CAPEX by Scatec Solar
• Tariffs based on the price of kerosene and diesel.
• Revenue model = OPEX + renewable components
Project Outcome
• Round the clock electricity
• Enhance economic activity and productivity
Case Study 2 – SMA Solaroff-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
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
Financing
• Builders such as Reliance, Nano City promoters
Outcome
• Developments in planning stages
Entrepreneurial Opportunities
• Technology Transfer• Energy Storage• Smart Grids• Renewable
Integration• System integration,
project management• Energy Efficiency
• 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?
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