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www.renewables-made-in-germany.com
Rise of PV Hybrid Systems
Markus Schwaninger, Project Manager, GIZ
•As a federal enterprise, we support the German
Government in achieving its objectives in the field of
international cooperation for sustainable development.
•GIZ operates in more than 130 countries worldwide.
•GIZ employs more than 17,000 staff members across the
globe – some 70% of whom are employed locally as national
personnel
•In 2011, GIZ had a business volume of EUR 2 billion
GIZ Worldwide
GIZ Energy Programmes Worldwide
GIZ energy programmes
worldwide: about 100
Africa: 30 %
Asia: 27%
Europe: 12 %
Latin America: 18 %
MENA Region: 6 %
Trans-regional: 7 %
Current
energy projects
Programmes according
to energy type:
Solar: 42
Biomass: 22
Wind: 18
Hydro: 12
GIZ Approach
Methods
Policy advisement about support mechanisms & sector strategies
Creation of incentive programmes and financing mechanisms (especially for energy
access projects)
Professional training and education, seminars, instruction
Private sector cooperation to initiate projects with upscaling potential
e.g. PV Hybrid Systems using the A-B-C Business Model
The term PV Hybrid can have different meanings…
… usually it is referred to industrial size PV-Diesel Hybrids without using batteries (often called Solar Fuel Saver)
… in regard to rural electrification the term is instead often used for PV-Battery Hybrids with Diesel back-up
Depending on what is referred, there are different areas of application and different motivations / business models
What is a PV Hybrid System?
Scope of PV Hybrid Systems
Two projects two different targets and business approaches
Target: Energy Access through Greenfield Mini-Grid Target: Diesel savings through PV retrofitting
Very simple answer: Due to massive price decrease of PV, it makes business sense today (and does not need any subsidies)!
Rise of PV Hybrids for Retrofitting
Source: SMA
Savings on running costs (business motivation)
Reduced risk of fuel price increases and supply shortages (risk-reduction motivation)
For isolated grids in Kenya: every electricity consumer pays the costs for isolated Diesel grids PV retrofitting saves money for each electricity consumer (macroeconomic / political motivation)
Role of thumb: With diesel prices of ~1 USD/litre, diesel offsetting through PV is attractive
Motivation for PV Hybrids for Retrofitting
Typical load profiles for Kenyan off-grid stations
Source: Kenya Power
Load (kVA) vs. Daytime
Lodwar
Diesel Capacity: 1,800 kVA
Mandera
Diesel Capacity: 2,000 kVA
Medium PV penetration
Up to ~60% PV penetration
Intelligent Energy Management
required to avoid Diesel gensets
run below min. load (~30%), no
Energy Storage required
Requirements for increased PV penetration
Low PV penetration
Up to ~20% PV penetration
No Energy Management
required; PV as negative load
automatic reduction of
Diesel
High PV penetration
Up to 100% PV penetration
Energy Storage required
cost increase
What criteria shall the optimisation be based on?
Finding the highest diesel savings for a given amount of money? Minimization of total Electricity Production Costs (LCOE)? Maximizing the renewables penetration?
The choice of energy storage is a matter of both technical (load profile) and economic considerations
Optimising system layout – with / without energy storage
Invitation to Seminar: Battery Systems for Isolated Grids
When?
Friday, 7th March 2014
Where?
Strathmore Business School
Participation? mailto:
Source:
Autarsys
08:30 Registration
09:00 Opening
Session 1: Battery systems for Isolated Grids
09:30 Requirements for PV-battery systems to replace diesel gensets (Erich Bosch, Autarsys GmbH)
10:15 Battery technologies and the most important suppliers in comparison (Matthias Ross, Autarsys GmbH)
11:00 Coffee Break
Session 2: Inverter & System requirements for efficient Battery utilization
11:30 Inverter & System requirements: reactive power & black-start capability, droop control vs. integrated frequency control (Erich Bosch, Autarsys GmbH)
Session 3: Technical simulations for system design
12:15 Technical Simulation of off-grid systems to optimize the dimensioning of battery systems (Martin Baart, OneShore Energy GmbH)
13:00 Lunch break
Session 4: Business case
14:00 Economic assessment of integrating PV and energy storage (Matthias Ross, Autarsys GmbH)
14:45 Innovative Business models for off-grid energy supply (Philipp Neff, OneShore Energy GmbH)
15:30 Networking Moderated Networking Session with guiding questions
17:00 Closing
Energy access for rural communities (political motivation)
Grid extension not economical (macroeconomic motivation) or geographically (physical motivation) not possible
Stand-alone systems like solar lanterns and solar home systems offer limited energy services and are often insufficient for productive uses for income generation
Only if framework conditions are attractive there will be a business motivation for the private sector
most crucial is hereby the question of tariff setting!!
Motivation for PV Hybrids for Energy Access
Tariffs: crucial issue for both operators (economic viability) as well as users (affordability)
Tariff-setting as in the spectrum between “willing buyer-willing seller” and “rural-urban equity”
Different tariff-setting approaches, e.g. negotiated tariffs, unified national tariffs, approved tariffs, calculated tariffs, etc.
In general: if the tariffs do not allow for an economic return, a subsidy must be designed to bridge the gap, otherwise the investment will not take place, or projects will fail at some point.
Tariff setting for PV-Hybrid Mini-Grids
Source: Michael Franz, EUEI PDF
Possibility of Productive Use of Electricity (e.g. cold storage, agricultural processes, grinding, milling)
Standard appliances (e.g. refrigerators) can be used
Rural customers have the same possibilities to use electricity as urban customers
AC mini-grids are expandable and modular with standardized system components to allow for growth
Interconnectivity possible with other mini-grid or with the utility grid once it arrives
Benefits of AC-coupled PV-Hybrids
Source: IEA
A-B-C Business Model
Project Facts:
Parties involved: Kirchner Solar Group GmbH & GIZ
A-B-C Business Model:
• Anchor: Airtel Ltd. ( provides bankability)
• Business: Maize Mill, Carpentry, Poultry Farm, Welding, Hair Saloon, Shops, etc.
• Community: Households (cell phone, radio, TV, fridge)
System size: 10 kWp Solar Container (incl. Battery) for Base Telecom Station (BTS) & additional 20 kWp Solar for community
Project Reference – Kirchner Solar Group GmbH in Uganda
Micro-utility Village Electrification
Project Facts:
Parties involved:
• INENSUS GmbH (movable generation assets)
• Sen. public sector / GIZ (fixed distribution assets)
Billing through pre-payment system
Electricity block payment system that can be traded between rural citizens
System size: 5 kWp Solar, 5 kW Wind, 11 kVA Diesel, 120 kVAh Battery
Project Reference – INENSUS GmbH in Senegal
“renewables – Made in Germany” focuses on a choice of countries in Sub-
Saharan Africa
Ghana Kenya Mozambique Tanzania
PV Hybrids is one of the focus segments of the initiative in all four countries.
We cover both, PV Hybrids for Retrofitting and for Energy Access.
“renewables – Made in Germany” initiative in Sub-Saharan Africa
Planning phase: Lack of reliable data on load profile, diesel consumption makes it difficult to predict exact fuel savings and thus to get financing Operation phase: Lack of monitoring & analysis of PV systems we can convince better if we properly collect and analyse data in regard to fuel savings through PV Planning & Operation phase: Good quality in products, engineering and after-sales services is crucial (especially for complex systems using batteries) to assure long-term sustainability
Get in contact with us!! We would be happy to discuss your specific projects ideas and see how we can support it!
Closing remarks
www.renewables-made-in-germany.com
Thank you for your attention!
Markus Schwaninger
www.giz.de/projektentwicklungprogramm