Marilena Lazopoulou TTA marilena.lazopoulou@tta.com.es Understanding economics of rural electrification projects based on intermittent energy sources
ARE: Who are we Established in 2006, the Alliance for Rural Electrification (ARE) is the only global business association that represents the whole decentralised renewable energy sector for rural electrification in developing and emerging countries. ARE mobilises and unites private sector players by engaging in partnerships with key institutions to facilitate the development of off-grid markets. Copyright Alliance for Rural Electrification. All rights reserved. 2
Services & Support to ARE Members As the global hub for rural electrification practitioners, ARE raises its members profile by showcasing their expertise and solutions. ARE offers four business lines: Advice & Advocacy Services Knowledge & Intelligence Services Business Promotion & Marketing Business Creation & Support Copyright Alliance for Rural Electrification. All rights reserved. >> The ARE team looks forward to meeting you at Intersolar Europe (Munich, 31 May 1 Jun 2017) 3
TTA at a glance SME Founded in Barcelona in 1986 Permanent presence in Kenya and Brazil Consultancy, engineering, R&D, project development, management, social, financial aspects Rural electrification through microgrids, grid-connected, sustainable buildings Southern Europe, Africa, Latin America, Oceania Public, private and multilateral clients Active in IEC TC82 and JWG1 (IEC 62257)
Background LV Microgrids Akane (Morocco) Rwanda, Tanzania (Mpale) Santo Antâo (Cape Verde) Chad x3 Floreana Island (Ecuador) Cal Peraire (Spain) 1987: 1994 Beginning Farmhouses PV electrification (Spain) 1997-2002 La Rambla del Agua (Spain) 2004 2005 2006 2007 Diakha Madina (Senegal) 2009 Beni Said (Morocco) 2012 2013 Atouf (Palestine) 2014 Las Balsas (Ecuador) 5 2015 2016 Ghana x4 2017 Burundi x5 Kenya x3 Tanzania (Manda)
Typical Technical Standard DC coupled, mainly Renewable Energy generation Load electrical supply: standard AC quality single/three phase Bus-bar voltage: < 50V DC (SELV) Battery: Pb-tubular, vented, DODmax=70%, A>2 days, 48V PV Charge controller: MPPT Inverter: sinusoidal η > 85% PV modules: crystalline IEC 61215 Data logging: based on IEC 61724 (JRC guidelines) Load Management: user interface, automatic load disconnect
Our experience... 1988-1992 Lamps in DC, 24V and 12V Other appliances 230V AC, small inverters Lead acid generic batteries 1992-1997 PV Product revolution Inverters up to 5 kva (low efficiency at low loads) Lead acid advanced batteries and battery charge control algorithms DC products scarce 230V AC supply 1997-2004 Quality of AC supply and advances in inverters (modular, efficient) Higher power levels, demand management, hybrid generation, micro-grids
Our experience... 2004-2012 Dual mode, bi-directional inverters Standardisation of solutions with solar generation and AC consumption 2012 to present LED lighting in DC DC appliances at different voltages: 5V, 12V, 19V, 24V, etc New battery technologies: Li-ion, Na, Ni, etc Back to the drawing board?
Service level-energy: IEC 62257
Service area-quality: IEC 62257
Service level: Others ESMAP, Multi-tier framework Capacity Daily energy Duration (h/day) Tier 0 Tier 1 Tier 2 Tier 3 Tier 4 Tier 5 No electricity > 3 W > 50 W > 200 W > 800 W > 2 kw > 12 Wh > 200 Wh > 1 kwh > 3.4 kwh > 8.2 kwh > 4 > 4 > 8 > 16 > 23 Reliability Unscheduled outages No unscheduled outages Quality Low Good Affordability Legality Health & safety Not convenient Cost is less than 5% of household income per year Elaborated by author Bill to utility, prepaid card seller or authorised representative Convenient
Service level: Others NREL, QAF
Universal electrification scheme Service level is independent on technology and configuration (AC vs DC, stand-alone or microgrid) Clients interested in lumens, hours of TV and cell phone charging, refrigeration, kg of production, etc
Challenge: Offer high service level at lower costs Technology depends on market analysis & local conditions Financing driven by results Can DC appliances bring the costs of the service down?
Functionalities IRENA (2016)
Cost structure Consumption (# connections) Distribution (km, poles) Generation (kwp) CAPEX Storage (kwh) Conversion (kva) Logistics / Remoteness factor (/mile, /km) Services / Local market maturity 17
What affects CAPEX? Grid connected vs autonomous, AC vs DC Economies of scale Load demand and RE sources Quality of service Market maturity, Location RE fraction: Category Indicative PV annual energy fraction Indicative PV rated capacity/load ratio Characteristics Low < 20% < 50% No batteries No control Large genset Medium 20%-50% > 50% Batteries 1 d. autonomy Large genset High > 50% > 150% Batteries >2 d. autonomy Small gensets Adapted from NREL
Case study Pediatorkope (GH) Solar: 49 kwp Wind: 11 kw
Case study Ghana CAPEX Logistics Services 5 per mile of maritime 61 per km of terrestrial Project management and engineering: 10% CAPEX Capacity building & Training: 3% CAPEX Low maturity market
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