Introducing PV-diesel hybrid solutions in offgrid agriculture and tourism in Egypt A development partnership with GIZ/BMZ Dr. Roman Brinzanik Cairo, May 22, 2017
Agenda KRAFTWERK Renewable Power Solutions PV-diesel hybrid solutions Development partnership with GIZ/BMZ
KRAFTWERK intelligent use of renewable energy Solutions Solar parks as an investment Self-consumption for more independence PV-Diesel Hybrid for diesel savings Development Implementation Feasibility studies Yield analysis Design und engineering Permit procedures Services Commissioning Construction 3
Our focus: high potential regions Global irradiation map Our offices Berlin Frankfurt optimal Cairo conditions in MENA region Santiago Global horizontal irradiation 600 1,600 2,900 kwh / m 2 * a Source: 3Tier Inc., 2010 PV is already market competitive in countries with high irradiation 4
Cooperation with ComAp and Cairo Solar to bundle PV and genset/hybrid controller expertise ~650kWp PV installed in Egypt Office in Cairo Finance solutions many genset installations in Egypt European/ Egyptian engineers Making PV-diesel hybrid plants happen in Egypt 5
Agenda KRAFTWERK Renewable Power Solutions PV-diesel hybrid solutions Development partnership with GIZ/BMZ
The principle: Substitution of diesel by solar electricity Load"profile" PV"Total"Bruto" Diesel"profile"Neto" PV"Total"Neto" Diesel"min" 24 hour load and solar profile Solar energy is cheaper than unsubsidized diesel Price per kwh Power Solar energy fed into the diesel grid = diesel savings Electricity from diesel Electricity from solar PV Electricity from solar PV/battery Payback time ~ 5 years 1" 2" 3" 4" 5" 6" 7" 8" 9" 10" 11" 12" 13" 14" 15" 16" 17" 18" 19" 20" 21" 22" 23" 24" Hours 7
Electrical scheme of PV-diesel hybrid solution Electrical scheme Main features of hybrid control PV plant Hybrid Control PM Z s Meter solar = = Grid inverter Switchboard Consumers (pumps,...) Load Z c Meter consumption! Hybrid Control ensures stable grid provided by the gensets! The solar grid inverters only follow the grid! Control/ measurement of total load! Regulation of inverter power - Power Management (PM) - to ensure stable and safe operation of minimum 1 genset! Genset Spinning Reserve, ensuring enough genset capacity available! Reverse Power Control, protection of gensets! Remote Emergency Control, immediate zero-power mode of inverters G G G Diesel gensets 8
Case study Decentralized Renewable Energy Solutions in the MENA region, Cairo, May 22, 2017 PV plant integrated in diesel grid of luxury hotel! Luxury hotel in the Atacama Desert, Chile! Island system supplied by 3 diesel generators! ~ US$ 100,000 annual diesel costs! Diesel price of 0.85 US$ per liter! Project phase 1: 23 kwp PV plant! Feed into diesel grid! Hybrid controller ensures co-generation! Commissioned: June 2013 9
Case study Decentralized Renewable Energy Solutions in the MENA region, Cairo, May 22, 2017 Solar power reduces diesel consumption Load and solar profiles during one day 90"kW" 80"kW" 70"kW" 60"kW" 50"kW" 40"kW" 30"kW" 20"kW" 10"kW" Load"profile" PV"Total"Bruto" Diesel"profile"Neto" PV"Total"Neto" Diesel"min" Solar energy fed into the grid = diesel savings! Load profile measurements during project planning! System solution: integration of PV in diesel grid, min of 1 genset must run continuously! Diesel savings of ~15% p.a.! Investment payback in 3 years! Project phase 2 (2017): 156kWp PV / 317kWh Li-Ion battery diesel hybrid system, diesel savings of ~65% p.a. 0"kW" 1" 2" 3" 4" 5" 6" 7" 8" 9" 10" 11" 12" 13" 14" 15" 16" 17" 18" 19" 20" 21" 22" 23" 24" 10
Decentralized Renewable Energy Solutions in the MENA region, Cairo, May 22, 2017 Huge potential for PV-diesel hybrid systems in offgrid agriculture and tourism in Egypt! Agriculture: land reclamation, irrigation, livestock breeding, cooling and packaging,...! Tourism: remote areas such as Marsa Alam, operation of hotels, water desalination,... Agriculture and tourism can become drivers of transition to solar power 11
Solar energy for self-consumption pays off - depending on fossil fuel subsidies, FX rate and capital cost Comparison of energy costs in Egypt 35 US Cent / kwh 30 25 20 15 w/o subsidies w/o subsidies Stable Implementing solar energy in a business! can sink operating expenses! increases planning dependability 10! creates greater independence 5 as-is as-is! protects the environment 0 Industrial energy costs on-grid Energy from diesel generators 1) Energy from photovoltaic plants 2) 1) Only diesel costs considered: 2.75 EGP/Liter 2) LCOE method, all costs considered over 25 years lifetime: CAPEX, M&O, capital costs 12
Market barriers for PV-diesel hybrid solutions in Egypt Diesel subsidies Time schedule of phase out is uncertain Awareness / trust Local investors, farms, hotels, banks lack know-how and experience Finance Unaccustomed cash flows, short investment horizon, weak EGP, high interest rate Expertise More complex than solar home systems Barriers need to be tackled in order to make solar PV successful 13
Agenda KRAFTWERK Renewable Power Solutions PV-diesel hybrid solutions Development partnership with GIZ/BMZ
Development partnership with GIZ/BMZ Private sector Development partnership Development cooperation Common goals! Market development for PV-diesel hybrid solutions in Egypt! Increase awareness on reliability and cost-efficiency of PV-diesel hybrid solutions! Target group: local investors and financiers such as farms, hotels, commercial banks, leasing companies, funds 15
Planned development partnership activities Real-world cases Measurement of load profiles and genset parameters of typical consumers Toolbox Financial simulation software and PV-diesel hybrid guidelines Know-how transfer Train-the trainer seminars, workshops, trainings Model projects Implement and showcase reference PV-diesel hybrid systems Networking Connect relevant stakeholders 16
Core messages! PV-diesel hybrid systems have a huge potential in offgrid agriculture and tourism! PPP with GIZ/BMZ on market development for PV-diesel hybrid systems! We are looking for interested agricultural and tourism companies, banks, leasing companies, funds! Kick-off in July 2017: contact us for updates Thank you for your attention 17
Your contact Decentralized Renewable Energy Solutions in the MENA region, Cairo, May 22, 2017 Dr. Roman Brinzanik Tel +49 69 8720 5501 Mobile +49 172 1744112 roman.brinzanik@kraftwerk-rps.com www.kraftwerk-rps.com Office Berlin Wilhelminenhofstraße 75, 12459 Berlin, Germany Office Egypt Building 170, Street 28, 5th District, New Cairo, Egypt 18