Low Carbon Microgrid Long Case Study

Size: px

Start display at page:

Download "Low Carbon Microgrid Long Case Study"

Teresa Bernice Black
5 years ago
Views:

Low Carbon Microgrid Long Case Study Community electrification, Ayeyarwady, Myanmar Schneider Electric Project background Seventy per cent of the population in Myanmar has no reliable supply of

1 Low Carbon Microgrid Long Case Study Community electrification, Ayeyarwady, Myanmar Schneider Electric Project background Seventy per cent of the population in Myanmar has no reliable supply of electricity. 1 This constitutes a major obstacle to their development and economic growth. Access to energy results in better quality of life through improved access to healthcare, education social and economic development. During 2014, the village committee selected three villages, Targone, Yoe Gyi and Khalout Thaike to be electrified. The three villages are home to approximately 2500 residents who engage in predominately farming and fishing activities for income. Residents receiving the lowest salaries spent the largest portion of their monthly budget on energy. Prior to receiving electricity from micro grids families residing in Targone and Yoe Gyi had to travel to a rice husk gasifier, which only operated for 2-3 hours in the evening, to charge their batteries. Each family spent on average 3 USD per month on charging their 3 watt LED Lamp (6V,5Ah battery) and 6 USD per month for their television battery. The batteries did often not last more than 6 months. The Golden Key Company in partnership with Schneider Electric and financially backed by Myanmar s Ministry of Rural Development, implemented Solar-powered smart electrical microgrids (size on average 1kWp per cluster). This project provides 800 homes between the three aforementioned villages access to reliable and affordable electricity Each household was equipped with two LED lights, a mobile charging dock or a radio. 2 Schneider Electric supplies equipment, provides technical expertise on several levels and helps develop local competencies: defining requirements, developing tailored energy solutions, training installers and local entrepreneurs. 3 1 According to the Asian Development Bank (ADB) 2 Schneider Electric (2015). Schneider Electric rolls out an off-grid electrification solution for remote communities in Myanmar. Press release. Retrieved October 1 st, 2015, from 3 ibid.

Technical features DC microgrids with Centralized Generation and Distributed storage are a reliable, cost effective, scalable and highly efficient solution to provide access to electricity to people

2 Technical features DC microgrids with Centralized Generation and Distributed storage are a reliable, cost effective, scalable and highly efficient solution to provide access to electricity to people living without access to electricity. A set of solar panels connected in series generates power at 140 to 230 Volt DC, which is then transmitted over an average distance of 1-2 km similar to 230 Volt AC distribution line using a 2 core cable and supporting poles. The direct current delivered by the distribution line is stepped down to 14 V using a micro grid controller, which is installed in each house through a junction box mounted on poles. It is used to charge the storage battery and power the energy efficient DC loads in a house. During the day, the micro grid controller draws power from the grid to charge the battery and power the DC loads. At night the controller supplies power to the DC loads from stored energy in the battery. Emphasizing on the cost-competitiveness, health and environmental benefits of solar powered off-grid solution for sustainable development of village, Schneider Electric has introduced an innovative patented technology DC Micro Grid Solution with centralized generation and distributed storage that aims to meet the present challenges of access to electricity needs in the remote off-grid villages, thus promoting socio-economic growth of the off-grid villages. Solar DC microgrids were chosen for several benefits: Simple Technology using an array of solar panels connected in series / parallel to generate power at 230 V, which can be transmitted over a distance of 2 KM. The controller at each household steps down the voltage to 14V DC to power the load and charge the battery. Therefore, it does not require highly skilled resource for installation and maintenance of the system in remote areas. Reliable due to absence of centralized higher capacity solar charge controller, battery bank and higher capacity inverter makes this system highly reliable. Each household has their own lower capacity controllers and storage battery. The lower capacity controllers are more reliable due to the lower number of components.

3 Cost effective - Use of DC home appliances assure low power requirement for each family compared to conventional grid supply to meet their day to day energy needs. This system requires less solar panel and storage battery compared, allowing low initial investment. Energy Efficient - DC micro grid uses single stage DC-DC conversion during the day to charge the battery and power load. During the night, the loads are directly powered from the battery. Higher capacity solar panel arrays installed in sunshine areas are more efficient for cluster villages, thus increasing the overall efficiency of the system Business model A social business model promoting health, clean environment, and entrepreneurship In a DC micro grid system, the initial investment for the complete installation is shared between the micro grid entrepreneur and the end users. The entrepreneur initially invests in the installation of the centralized solar panels and distribution lines. The end users invest in the electrical installation and equipment in their houses. The end users pay a monthly / weekly/ daily fee to the micro grid operator (generally the Village head) based on the energy consumption from the DC micro grid. On average, each family will contribute 1USD / month towards maintenance. The farmers usually don t have the money to afford the investment required for the equipment. However, the government offers a subsidy of USD 200 per household as part of the Rural Electrification Program. The VECs used the residual subsidy for procurement, transportation and installation as the cost of the system for each household was less than USD 200. Installed by: VECs Installation Equipment supplied by: Owned by: Village Leader and Villagers

4 Business Model Canvas The Golden Key Company is the main partner: they provide Solar Panels, imported from China. They also give access to their network of agroproducts distributors, who cover more than 60 sales points across 9 states. Nay Yaung Ain, GKC s energy division also trains entrepreneurs who maintain collective installations. In the medium term, these entrepreneurs shall also sell batteries and other components. Training of the Village Electrification Consultants Training & convincing of the villagers Installation of the microgrid components - Equipment - VECs - Initial investment (currently covered by government subsidy, in a permanent business model it would have to be covered by an entrepreneur in the village and the community) Reliable Electricity - Each household has two LED lights. Schneider Electric assured them higher quality in the microgrid. Its performance depends on every component, which has to be reliable and good quality. Communication - Mobile tower has arrived in Ayeyarwady now, so villagers are able to use mobile phone services Financial - Entrepreneurs operating battery charging station fuelled by diesel spent lot of money on diesel and generator maintenance. As those charging mechanism were not compliant with the technical standards, batteries did not last more than 6 months. The end users used to spend a lot of money on charging their batteries and transported them on their scooters. There is no communication between the villages and the city due to network unavailability. Face to face is the only opportunity to communicate. The village leader is the key decision maker, the villagers believe and trust him. As such, he needs to be convinced first. VECs have face to face personal and professional relationships with customers. Households members in one family/household. - The basic need is lighting School Community of farmers Monastery (Buddhist temple) Church Small commerce Value driven model, however the simple technology used makes the project cost effective. Cost can be covered through small energy services (15-18 months payback possible based on the business model). Conventional grid is expensive for remote isolated villages with low income people. This project is 100% subsidised by the Ministry of Rural Development and Fishery. However, there were a few pilot projects that were implemented previously and they have charged end users USD 20 cents/day = 6 USD/month for 2 lamps and power to radio.

5 Training Village Electrification Consultants (VECs) Schneider Electric started by training their local partner Golden Key, an agro based company with strong ties to the local communities through the distribution of fertilizers & pesticides to the villages. This partnership opened channels to the targeted communities. Golden Key has outlets almost everywhere in the country. The training is aimed to educate Golden Key s sales managers and engineers in solar energy, imparting knowledge and awareness of the benefits associated with solar energy. After which the sales managers and engineers are promoted to VECs. VECs are the main communication channel to the villagers and are responsible to educate and promote DC solar micro grids. The four main steps carried out by the VEC to electrify a village include: Survey households in the target village, and educate the villagers on various electrification solutions (e.g. using demonstrations). Advise the people on the appropriate solution for their village. Convincing the local people is essential for the project and as such an agreement needs to be formed that appeals to the villagers. The main role of VECs is to convince the villagers on the benefits of the installation. Their role is to build trust within the communities. Setup the system. In the case of Ayeyarwady, all villagers contributed to the installation. So the manpower for establishing the distribution lines (erecting poles) was supported by the villagers themselves. They also provided shelter and food to the VECs. VECs impart knowledge to the villagers on the operations and maintenance of the microgrid. The DC microgrid requires minimal maintenance.

6 Key learnings and best practices The success of a project like this is reliant on government and communities understanding technology options. Driving awareness about the renewable energy resources, their benefits, and correct use was essential in the early phase of the project. Building trust with community is important as it is an invisible license to operate in the inaccessible remote locations. Providing regular service and ensuring customer satisfaction during operations is also an important factor influencing the replicability of similar government-led rural electrification projects. Moreover, transportation and logistics planning are the basis for project viability as it could increase unnecessary costs and deplete project economics, while the government budget remains fixed. As such, building capacity in renewable energy with locals through training programs is essential to align with the current ambition of government on off-grid electrification projects in Myanmar. The three pilot projects have proved that the business model can work and could be rolled out in more than 500 similar villages that could benefit more than 200,000 farmers. The presence of the GKC in rural areas is an essential factor for the Ayeyarwady microgrids and the future expansion of the business model: The projects can rely on GKC s existing rural distribution network to ensure proximity with end-customers, and GKC s ability to manage the VECs. Despite the small kw size of the projects, this essential factor for success is worth featuring for replication. The initial investment cost of the microgrids were provided by the national Rural Electrification Program through a governmental tender Revenue arising from the payment of energy services from end-customers ensures future maintenance and material replacement costs. Schneider Electric anticipates that this business model, providing for community-based needs, will rely on subsidies for part of the CAPEX in the future. Revenue generating activities (i.e. small businesses) are key to stabilizing the revenue stream that covers the OPEX and can increasingly contribute to the reimbursement of the CAPEX, but are not yet expected to fully cover the investment costs. Schneider Electric

Rural Energy Access: Promoting Solar Home Systems In Rural Areas In Zambia A Case Study. O.S. Kalumiana

Rural Energy Access: Promoting Solar Home Systems In Rural Areas In Zambia A Case Study O.S. Kalumiana Department of Energy, Ministry of Energy & Water Development, P.O. Box 51254, Lusaka ZAMBIA; Tel: