9/15/2017 1

Solar PV-Diesel Gen-set Hybrid Power

for Micro/Mini Grids.

USAID ICED II

Jakarta, 15th September 2017

Hybrid Technology Overview. Definition:• Definition:

– Grid which has embedded generation facilities of dispatchable and non-

dispatchable nature and both types are synchronized.

Dispatchable: Non-Dispatchable: Synchronized:

Output can be managed at

will, provided there is fuel

and demand is within

generator’s capacity.

• Fossil

• Gas

• Coal

• Diesel

• Hydro

• Nuclear

• WtE

• BioGas

Output depends on fuel

availability and can only be

curtailed.

• Solar PV

• Wind

• Wave

• Tidal

The various generators are

automatically dispatched in

real time according to

demand, prioritizing the Non-

Dispatchable generation:

• Generation mix

• Grid design

• Dispatch controller

• Hybrid controller

• Full Grid SCADA

Penetration level (% of non-

dispatchable) dictates the

level of control required.

Hybrid Technology Overview. Bit of History:Year Location Application Sources 24 H Still On

1983 Netherland Island School Solar PV + Wind + Batts Yes Yes

1983 Pellworm Island – Germany Villages MiniGrid (RE) Solar PV + Diesel Yes Yes

1983 Kythnos Island – Greek Villages MiniGrid (RE) Solar PV + Wind + Diesel Yes Yes

1984 Curacao - Netherland’s Antilles Radio Station Solar PV + Diesel + UPS Yes Yes

1990 Huai Kha Khaeng – Thailand Villages MiniGrid (RE) Solar PV + Diesel Yes Yes

1995 French Island – Australia Guest House - 11 Rooms Solar PV + Wind + Diesel + Batts Yes Yes

1996 Costa Cocos – Mexico Resort Solar PV + Wind + Diesel + Batts Yes Yes

1997 Kuching – Malaysia Village - 70 Houses + (RE) Solar PV + Wind + Diesel Yes Yes

1998 Victoria – Australia Resort Solar PV + Wind + Diesel + Batts Yes ??

1998 Dartmoor – UK Farm Wind + Diesel Yes Yes

1999 Phu Kradung – Thailand Villages MiniGrid (RE) Solar PV + Wind + Diesel Yes Yes

2002 Song Diang Dao Xiang – China 1,000 Villages MiniGrid (RE) Solar PV + Diesel Yes Yes

Source: UN Environment - UNIDO

Key Concepts.

• Hybrid is not only generation technology but more importantly, a grid

management approach.

• Hybrid is the foundation block of any grid, which will eventually grow as his

consumers and demand do.

• Customizable and expandable to accommodate increased demand and

grid expansion.

• All PLN grids should be capable to respond to an instantaneous and

unscheduled load variation of 20% or more.

• Not all gensets are suitable to be integrated in a Hybrid system.

• Hybrid systems investor/operator is not in a position to assume demand

and/or collection uncertainties in Rural Elect. or Unserved Areas.

• The challenges are not on the technology but within the regulations,

bureaucracy and finance structuring.

Hybrid Technology Overview. Key Elements:

• Up to 20% of Solar PV penetration in the grid can be effectively modelled as

negative load or usual loads switching off during daytime.

• Utilization of the load response capability, inherent to any diesel or reciprocating

generation technology.

• Higher levels of Solar PV (>20%) require:

– Diesels in load response (30/80 setpoints), and controlled by automatic

dispatching management unit.

– Data acquisition units, which will inform the Hybrid controller, in real time, of

the grid behavior and load characteristics.

– Telecommunications equipment to acquire and send remote data and

deliver instructions.

– Diesels to be equipped with ECU’s and Modbus communication.

– Hybrid Controller, which will read all information from the grid, gensets and

Solar PV (plus other RE as well), and will send instructions to all

components according to the demand and generation resources available,

giving priority to power quality and supply from the generation mix available,

reducing the diesel component to the minimum feasible.

Hybrid Technology Overview. Minimum:

20% Solar PV / 80% Diesel

Diesel in load response - Setpoints at 30/80

Optional

Connection

to Other

Hybrid Grids

Hybrid Technology Overview. Medium:

20 to 60% Solar PV / > 40% Diesel (60/40 Max) – Various DG

Hybrid Ctrl - Diesel in load response - Setpoints at 30/80

Buffering Unit/Units

Automated Dispatching

Optional

Connection

to Other

Hybrid Grids

Hybrid Technology Overview. High:

> 60% Solar PV / < 40% Diesel – Various DG – Batteries

Hybrid Ctrl - Diesel in load response - Setpoints at 30/80

Buffering Unit/Units

Automated Dispatching

Optional

Connection

to Other

Hybrid Grids

Hybrid Technology Overview. Multiple High:

Unlimited R.E. / 10% Diesel – Utility Scale Storage

Advanced Hybrid Ctrl – Remote Grid Management

Diesels Only as Backup

Optional

Connection

to Other

Hybrid Grids

Hybrid Technology Overview. Smart Grid:

Optional

Connection

to Other

Hybrid Grids

Unlimited R.E. / > 10 % Diesel – U.T. Storage – Full SCADA

Remote Grid & Load Shifting – Demand Management

Diesels Only as Backup

Hybrid for Diesel Reduction:

• Grid analysis

• Sizing and design of diesel buffering engine/engines

• All diesel on Load Response mode (30/80 or better)

• All diesel with ECU/Modbus controls

• All diesel in stepped dispatching procedure

• Sizing Solar PV up to 60% of diesel kW

• Hybrid controller unit

• Data acquisition units in all grid key nodes

To reduce Diesel further:

• Inclusion of additional non-fossil dispatchable generation, if available

• Inclusion of batteries to buffer: can reduce Diesel to backup (<10%)

• Selectable Interconnection to other grids to share resources

Hybrid for Rural Electrification:

• Demand forecast & Grid development program

• Design & Dimensioning of pre-assembled

components

• Escalation & Expansion planning

• Provision for Interconnections in design

• Provision for Flexible generation mix and supply

resilience

• Remote management (system and load management)

• Pre-pay metering integration

• Local OM requirements on generation only

Customizable and expandable to accommodate increased demand and

grid expansion

Type of Control Systems:

Type of

ControllerPros Cons Examples

Manufacturer

Sponsored

• Integrated solution

• Optimized for specific

components

• Centralized Service

• Tied to manufacturer’s

components

• Become captive customer

• Cost competitive

• Obsolescence

• SMA

• Caterpillar

• Fronius

• Scheneider

• Mitsubishi

Manufacturer

Independent

• Competitive procurement

• Configuration flexibility

• Broad knowledge

• Component replacement

• Expandability

• Highly Customizable

• Build capacity

• Longer set up times

• Some responsibility

dilution

• Dhybrid

• Siemens

• Comp Ap

• Leonics

Lessons Learned in Other Countries:

Lessons Learned. How:

Areas of

Application

Financing and

CollateralsSponsor Readiness

Implementation

Procedure

• Grid Isolated

Facilities.

• Rural

Electrification

(New/Unserved)

• Energy cost

reduction.

• Supply stability /

Resilience.

• Load/Demand

balance.

• Energy

independence.

• Environmental

improvement.

• Private investment.

• Commercial finance.

• Public co-finance.

• Government budget.

• Community

Shareholding (Ge/Jp)

• Legislative and

Executive pro-active

support.

• Utility pro-active

support.

• Restrictions removal.

• Non-Intrusive.

• Undisputed long term

program.

• Initiative leadership.

• Stakeholders support.

• Coordinated work.

• Holistic avoided cost

approach.

• Clear, accountable and

measurable objectives.

• Allocation criteria.

• Technical criteria.

• Structured and planned

procurement.

• Owner-

Operator.

• ESCO.

• IPP / PPA.

• PPP mUtility

license.

• mUtility SPV

Ownership Scenarios:

Ownership Form Pros Cons

Public:

• Utility

• Ministry

• Regional Gov

• Development Control

• Financial Integration

• Political Governance

• Up Front Investment

• Budgetary Uncertainty

• Diluted Accountability

• High Bureaucracy

IPP:

• Developer

• Consortium

• Development Control

• Investment Free

• Risk Free

• Quick Deployment

• Full Enforceability

• Strong PPA

• Structured Procurement

• Facilitation Initiatives

PPP:

• Licensed

• SPV / SPC

• Relative Control

• Reduced Investment

• Risk Sharing

• Improved Bankability

• Relative Enforceability

• Finance & Facilitation

• Shared Responsibility

• High Bureaucracy

Hybrid Types Implementation:

New or Unserved

Electrification

New Generation

On Existing Grid

Upgrade of

Existing Plants

All share the same structuring process:

• Service Area Selection & System Ownership

• Generation Assessment & System Engineering

• Pricing, Procurement & Construction

• Operation & Expansion

• Ownership Transfer

Lessons Learned:

Indonesia three main deployment areas:

New Generation Plants

Upgrade of Existing Plants and Grid

New Electrification Areas with New Grid

• The challenges are not in the technology, but in the collaterals, like, customs

and uses, policies, laws, regulations, bureaucracy and financial structuring.

• Clear initiative ownership, transversal & multi-level coordination are required.

• Hybrids are expensive, honest & realistic price and size targets are a must.

• Successful initiatives depend 100% on the sponsor’s transparency, capacity

to plan, drive, manage and structure the implementation process.

Improvisation and reactive attitudes are the perfect receipt for DISASTER.

SIMPLE

COMPLEX

CHALLENGING

Resources Bulding:Defined Program & Objectives

• Stable, agreed & undisputed long run program

• Owned, timed, measurable & accountable objectives

• Stakeholders agreement & collaboration

Legal & Regulatory Expertise

• Operational knowledge of related by-laws

• Use & take advantage of existing regulations and procedures

Financial Structuring

• Efficient cost assessment & management

• Financial structuring & cost allocation capacity

Socio Economic Detailed Knowledge

• Plant allocation, capacity & distribution size

• Highest financial efficiency selection criteria

Technical Capacity

• Component knowledge

• Design & engineering criteria

Solid & Consistent Procurement

• Driven by offtaker’s criteria's and program

• Efficient, quick, timed & transparent

• Realistic price objectives and financing structures

Lessons Learned. Key Decisions:

Form of PPA:

• Price

• Take or Pay vs Deemed generation

• Demand curve vs kWh paid

• Fuel supply

• Duration

• Capacity increase

• Ownership transfer

Grid:

• IPP vs UTILITY

• Extension

Facilitation:

• Permits

• Land

• Logistics and infrastructures

Procurement:

• Solicited vs Unsolicited

• Bidders Qualification

• Technical specifications

• Timelines

• Standard PPA vs negotiated

• Warranties

Award:

• Predictable and fixed

implementation schedule

Construction / Operation:

• Consumer enrollment

• Collection & recovery

• Consumer default vs

generation capacity

Lessons Learned. Sequencing:

• Service area selection

• Served area analysis

• Consumers & demand

• Grid topology

• Economic analysis

• Grid analysis

• Generation assessment

• Ownership

• Generation capacity

• Operation profiles

• Generators control options

• Hybrid system design

• Solar PV size vs Land

• Interconnection options

• Operation modes and

logistics

• Scalability with demand

• Procurement Preparation

• Facilitation initiatives

• Legal requirements

• Engineering requirements

• Pricing reference

• Forms of RfP & PPA

• Implementation schedule

• Procurement

• Bidding process

• Award process

• Construction schedule

• Implementation

• Testing & commissioning

• Generation Escalation

• OM schedule follow up

• Transfer of ownership

Pre-Procurement & Site Selection:PLN drives the procurement process by defining where and how they want the systems to be installed.

Regencies City

Village 1 Village X District 1 District X

Others

PLN

Wilayah

Criteria meeting evaluation.

Selection of proposals.

2 nd level selection.

Criteria meeting evaluation.

Selection of proposals.

1 st level selection.

Submission of

requests in

Standard Forms

PLN HQ

Planning

PLN HQ Procurement

Criteria meeting evaluation.

Selection of proposals.

Final Prioritization.

Define technical and

financial requirements.

Launch Procurement.

PLN HQ Renewables

PLN HQ

Financial

Define and Update

Eligibility Criteria.

Priority Setting.

Distribute and explain

eligibility criteria.

Eligibility Criteria Distributed Requests Received & Evaluated Procurement is Launched

Example Procurement timeline:

Qualification.

Shortlisting.

RfP Sent to

Shortlisted.

Bid Prepar

and Submiss

Proposal

Submission

Deadline.

Evaluation

Process.

Awardees

Announced.

Conditional

PPA Signed.

Financial

Terms

30 DAYS 30 DAYS 30 DAYS 5 180 DAYS

Financial

Closure

Achieved

90 DAYS

Construction

and Testing

180 DAYS

COD

25 YEARS

PLN

Evaluates

Qualifications

selecting the

qualified

bidders

Shortlisted

prepare and

submit their

technical and

financial

proposals

PLN

Evaluates the

Technical and

Financial

proposals.

1) Technical

2) Financial

only of the

Technical

OK

Awardee has

to obtain

financial

Closure.

Awardee has

to start final

procurement

and start

mobilization

on site/s

Awardee has

to build, test

and

commission

the site/s

Awardee

starts normal

operation of

the site/s

CRITICAL POTENTIAL IMPACT

PPA conditional to obtaining

permits and financial closure

Opportunities in Indonesia:

New or Unserved

Electrification

New Generation On

Existing Grid

Upgrade of Existing

Plants

Terima Kasih

USAID ICED II

Menara Jamsostek, North Tower 14th Floor

Jl. Gatoto Subroto No. 38

Jakarta 12710, Indonesia

T: +62 21 5296 2325, F: +62 21 5296 2326

www.iced.or.id