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  • Varun Gaur, PPRE, University of Oldenburg Page 1

    Master Thesis Report June 2013

    Hybrid (Solar PV-Diesel) Mini Grids in Philippines

    Prepared for

    GIZ Germany

    Prepared By

    Varun Gaur Masters Student (2011-2013)

    Post Graduate Program in Renewable Energy (PPRE)

    University of Oldenburg, Germany

    Email: varungaur.engg@gmail.com

  • Varun Gaur, PPRE, University of Oldenburg Page 2

  • Varun Gaur, PPRE, University of Oldenburg Page 3

    Acknowledgement

    Foremost, I would like to express my sincere gratitude to my supervisors Dr Detlev Heinemann (University of Oldenburg) and Mr Tobias Cossen (GIZ) for the continuous support in my Master thesis and research, for their patience, motivation, enthusiasm and immense knowledge. Their guidance helped me in all the time of research and writing of this thesis. Besides my main supervisors, I will also like to thank the entire team at Project Development Program (PEP) of GIZ for their support. Last but not the least, I would like to thank my family for supporting me throughout the life

  • Varun Gaur, PPRE, University of Oldenburg Page 4

    Table of Contents

    CHAPTE R 1 INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 1.1 Background ...................................................................................................................... 6 1.2 Objectives of my Master Thesis ...................................................................................... 7 1.3 Methodology .................................................................................................................... 7 1.4 Contents of the Report ..................................................................................................... 9

    CHAPTER 2 PHILIPPINES: AN OVERVIEW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 2.1 Basic Information........................................................................................................... 10 2.2 Electricity sector in Philippines ..................................................................................... 12

    2.3 Electricity Generation by Source ................................................................................... 12 2.4 Need for Renewable Energy and trends in the Fossil Fuel mix of Grid ........................ 14

    CHAPT ER 3 OFF GRI D EL ECT RI CIT Y I N PHIL IPP INES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 3.1 Current Scenario ............................................................................................................ 16 3.2 Strategy of the Government in the Off Grid Sector ....................................................... 17 3.3 Schemes for Off Grid Electrification ............................................................................. 18

    3.4 Problems with Diesel Mini Grids and the need for Renewable Energy ........................ 19 3.5 Schemes for Renewable Energy in Off Grid Electrification ......................................... 21

    CHAPTER 4: ELECTRIFICATION SCENARIO IN PHILIPPINE ISLANDS . . . . . . . . . . . . . . . . . . 22 4.1: Status Quo of Electricity in Island A ............................................................................ 22

    4.1.1 Electricity Consumption in the island (Findings from Household survey) ......... 26

    4.1.2 Electricity Generation in the Island ..................................................................... 28 4.1.3 Transmission and Distribution of electricity........................................................ 29

    4.1.4 Other important findings from Island A .............................................................. 30 4.2: Status Quo of Electrification in Island B ...................................................................... 31 4.3: Status Quo of Electrification in Island C ...................................................................... 33

    CHAPTER 5 MODELLING OF THE SOLAR-DIESEL HYBRID POWER SYSTEM . . . . . . . . 36 5.1: Indicative Technical Configuration of the proposed Solar-Diesel Hybrid Power

    System .................................................................................................................................. 37

    5.2: Methodology for Modelling the Hybrid Power System ............................................... 38 5.3: Resultant Excel Tool for modelling the Hybrid Power System.................................... 45

    CHAPTER 6: RESULTS OF THE MODELING OF SOLAR-DIESEL HYBRID SYSTEM FOR ISLAND A

    & ISLAND B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 6.1: Different Load Scenarios for Island A .......................................................................... 47

    6.2: Modelling results for Island A-Scenario1 ..................................................................... 49 6.2.1 Sensitivity Analysis for IslandA-Scenario1 ............................................................ 50

    6.3: Modelling results for Island A-Scenario2 ..................................................................... 53 6.3.1 Sensitivity Analysis for IslandA-Scenario2 ............................................................ 54

    6.4: Modelling results for Island A-Scenario3 ..................................................................... 57

    6.4.1 Sensitivity Analysis for IslandA-Scenario3 ............................................................ 58 6.5: Modelling results for Island B ...................................................................................... 61

    6.5.1 Sensitivity Analysis for IslandA-Scenario2 ............................................................ 62 CHAPTER 7: ASSESSMENT OF ROOFTOP PV POTENTIAL IN ISLAND B . . . . . . . . . . . . . . . 65

    7.1: Methodology for the Assessment ................................................................................. 65 7.2: Resorts with relevant roof tops for Solar PV installations............................................ 67

    7.3: Potential Roof Top Solar PV installation in Island B ................................................... 73 CHAPT ER 8: CO NCLUSIO NS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74

  • Varun Gaur, PPRE, University of Oldenburg Page 5

    ANNEXURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98

  • Varun Gaur, PPRE, University of Oldenburg Page 6

    CHAPTER 1 INTRODUCTION

    1.1 Background

    The Philippines is a large archipelago nation with more than 7000 islands. The uneven

    spread of population makes decentralized electricity a favorable choice for off grid

    electrification. The Government has already been encouraging Diesel (and bunker oil)

    Genset based Mini Grids in the country. There is an estimated 374.5MW 1(aggregated

    capacity) Diesel Mini Grids in Philippines. However, there exists, many problems

    associated with such Mini Grids, for example:

    High cost of electricity production (transportation cost to islands make Diesel very

    costly); cost of Diesel can be more than 1Euro per liter on a Filipino island

    Pollution from Diesel Gensets (more than 750 grams of CO2 per kWh of electricity

    production) and it can be worse for Bunker Oil based Mini Grids

    Problems associated with partial load operation of Diesel Gensets [Reduced fuel

    efficiency, higher GHG emissions and increased maintenance cost of Diesel

    Genset]

    Problems with the logistics; fuel shortage can lead to power interruptions which

    may result in social unrest in the region

    The location of Philippines (between 4N and 21 N latitude) makes it a high solar

    potential zone. Geothermal and Solar PV have high potential in the country. The

    average solar potential in Philippines is around 5.1 kWh /m2 /day. Unlike Geothermal

    which is generally a big power capacity system (MW scale), Solar PV is an effective off

    grid electrification solution. The PV system can act as a clean substitute of Diesel

    (standalone Solar PV) or fuel saver on a Diesel generator powered mini-grid (solar-

    Diesel hybrid).

    In case of standalone Solar PV system or Solar-Diesel Hybrid system, care should be

    taken such that:

    Solar PV is efficiently utilized

    Power Supply and Electric Load is matched in such a way that battery

    requirement is kept minimum

    Because of the above mentioned reasons, I thought that there could be a great scope of

    standalone or solar-Diesel hybrid Mini Grids in Philippines. With this background, I

    1 Source: Geographic, Technological and Economic Analysis of isolated Diesel grids by Paul Bertheau, year 2012

  • Varun Gaur, PPRE, University of Oldenburg Page 7

    carried out my Master thesis- Hybrid (Sola

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