Standards & Technology to Support Benin's Energy Backbone:

Energy Storage and Energy Efficiency

Andrew Seelaus

July 26, 2018

Cotonou, Benin

Three Key Topics

1. Company Overview: PowerGen Renewable Energy

2. Building the Future Power System of Africa

3. Paths to Africa’s Distributed Energy Future

1. Company Overview: PowerGen Renewable Energy

Excellence in East Africa for 7+ years

5

• Founded in 2011

• 95+ full-time employees with offices Nairobi, Kenya and Arusha, Tanzania

• Leading micro-grid company in Africa, by installed

grids (65+) and homes and business (6,000+)

• 200+ renewable energy systems installed across7 countries

• Operational capabilities across the full project life cycle

Proven Track Record & Capabilities Country Experience

Kenya Somalia

Tanzania

Mozambique

Zambia

Uganda

Rwanda

Countries of operations

Systems installed

Past & Current Partners

Micro-grid Development

Engineering, Procurement, Construction

Customer & Asset

Management

Renewable minigrids are the core of PowerGen’s private micro-utility model, which is supported by three key pillars.

Micro-grid Development

Engineering, Procurement, Construction

Customer & Asset

Management

PowerGen’s Private Micro-Utilities

Capacity: 3kWp to 60kWp (larger possible)Payments: Pay-As-You-Go (PAYG) technologyMetering: Advanced Metering Infrastructure (AMI)Business: Vertically integrated with three pillars

1. Minigrid Development2. EPC implementation3. Customer & Asset Management

Renewable Mini-grids

Micro-grid Photos

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Mini-grid photos

PowerGen operates smart, Pay-As-You-Go mini-grids

Cloud Software System

SM

SM

SM

SM $$

..011001…..011…

Smart MeteringInfrastructure

SM

Performance & Payment Data

Mobile Money Payments

Remote Monitoring

SOLAR ENERGY

BATTERYSTORAGE

AC Power 24hr/day

Our mini-grid software platform allows power system control and optimized customer service.

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Our mini-grid customers are homeowners and entrepreneurs in villages across Kenya and Tanzania…

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… and agricultural estates through the region.

>7,000 customers

80+ villages

>$4m Project Value

Case Study: Village Electrification at Finlay’s Tea Estate

PowerGen is the leader in the East African micro-grid market

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CompanyApprox. # of Operational MG’s Built

Operational MG’s Built by

PowerGen

PowerGen 65* 65

EON 12 12

SteamaCo 12 12

PowerHive 10-20** 0

ENGIE 4 4

RVE.SOL 2 0

Syst

em D

esig

n &

Inst

alla

tio

n

Customer Acquisition & Management

Operational Capacity & Expertise

* Includes sites built for E.On, Engie, SteamaCo, and other clients.** PH is currently actively building its first batch of sites with GMG funding in Kenya so this number is rising

PowerGen’s executional expertise is highly unique in the market – as a result, several other developers have relied on PowerGen to build their micro-grids

The Africa Enterprise Challenge Fund awarded PowerGen a

grant and concessional debt in 2015.

The Energy and Environmental Partnershipawarded PowerGen a grant

for microgrids in 2015.

The Kenya Climate Innovation Centre

awarded PowerGen a grant in 2014.

The Challenge Cup named PowerGen the winner for

Kenya in 2015, and PowerGenwas invited to speak at the

White House about its work with microgrids.

The Sankalp Forumnamed PowerGenrunner-up in 2015.

The Global Entrepreneurship

Summit 2015 invited PowerGen to exhibit to

President Obama’s Nairobi delegation in

2015.

Awarded grant from OPIC’s ACEF program in

2017.

Awarded grant from USAID DIV programin 2017 for demand

stimulation promotion.

Featured In:

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Notable awards and recognition received

2. Building the Future Power System of Africa

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Long-term, global power markets are shifting toward a smart, distributed energy system…

Old Model

New Model

Central Generation

Transmission & Distribution

Retail Customers

Fossil Fuel Generation

Transmission Retail CustomersRenewables

Energy Storage

Distributed Generation

Distributed Storage

P2P Trading

Smart / IOTDevices

DER’s

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…giving Africa the opportunity to “leapfrog” the old utility architecture with modern technologies…

Developed Country Grid Less-Developed Country Grid

= Community

Generation

Less infrastructure provides a fresh start to build the power system architecture of the future

Existing infrastructure slows transition to future grid challenging

Generation

Minigrids can operate autonomously or grid-connected, offering reliability and flexibility to consumers.

= population center

Less-Developed Country Grid

Autonomous Micro-Grids

Grid-Connected Micro-Grids

Developed Grid Africa Grid Time

Distributed/Smart

Ultimately this will allow African girds to converge with their evolving developed market counterparts

Improved power reliability & grid

resiliency

Bi-directional storage improves grid quality

Easy integration of renewables

Smart metering throughout the

grid

Enable lower cost “thin grid” transmission and distribution

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Convergence

Where does energy storage fit?

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Energy storage allows systems to shift supply to match demand.

Energy StorageIn residential contexts, peak load on a minigrid often occurs in the evening when customers return home from work. Because solar PV panels only generate during the day, batteries or generators are needed to serve this demand.

Energy storage can strengthen the grid in many ways.

Various types of energy services can provide valuable services to the grid.

Electrochemical

• Battery

• Flow Batteries

• Hydrogen

Mechanical

• Flywheels

• Compressed air

• Pumped Hydro

Electrical Thermal

• Capacitors

• Magnets

• Hot water storage

• Thermal fluid storage

Varieties of Energy Storage

Trend: Distributed Renewables

Section 1

Generation

Transmission

Distribution

Residential Commercial

Industrial

Residential

Increased Residential Solar further strains grid.

Utility-scale Renewables

Trend: Energy storage allows shifting supply to meet demand

Section 1

Generation

Transmission

Distribution

Residential Commercial

Industrial

Residential

Decreasing Battery PricesMore distributed energy storage.

Storage provides significant value to the grid.

Trend: Distributed Energy Resources (DER’s)

Section 1

Generation

Commercial

Industrial

Residential

DER’s can help reduce the strain on the grid.

Industrial

Commercial

Commercial

Residential

Transmission Constraint

Under-served Area

Trend: Distributed Energy Resources (DER’s)

Section 1

Generation

Commercial

Industrial

Residential

DER’s can help reduce the strain on the grid.

Industrial

Commercial

Commercial

Residential

Constraint Relieved

DER

DER

DER

DER

Trend: Global Minigrid Growth

Section 1

Generation

Commercial

Industrial

Residential

Global Minigrid Growth driven by security and resilience.

Industrial

Commercial

Commercial

Residential

3. Paths to Africa’s Distributed Energy Future

A Path Forward

1. Policy

2. Tools

3. Dialog

Policy: Binary perceptions of electrification are damaging to innovative problem-solving

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On-Grid Off-Grid

Policy: Energy leadership requires nuanced approaches to energy policy.

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Off-GridOn-Grid

Future Power System

Policy: Leap-frogging to a distributed energy systems requires smart policy decisions now.

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Off-GridOn-Grid Smart Policy Space

1. Incentives for DER providers that align with the country’s goals for electrification. Clear $/connection subsidy on par with grid extension subsidies.

2. Framework for DER interconnection (especially energy storage) that recognizes the value they provide to the grid.

3. Efficient disbursement mechanisms for DER providers.

Tools: Data rich systems enable control and analysis at an unprecedented level of granularity.

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Smart power systems

Smart appliances & devices

Tools: Blockchain as a means of aggregating small-scale storage.

Blockchain technology provides a means of aggregating energy storage in a highly efficient way.

“Smart contracts” automate multiple important features:

• Storage dispatch according to market behavior

• Incentive disbursement when milestones are achieved

• Coordinated control over many small-scale energy storage units across an entire network

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Dialog: Engage with on-the-ground private sector players to formulate policy.

African Mini-grid Developers Association• Formed in 2017• Active chapters in Kenya, Tanzania, & Nigeria

Roles• AMDA provides advocacy, promotion, and coordination for

developers across the continent• Creates unified voice to engage policy makers and financiers

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africamda.org

A Path Forward

1. Policy• Direct incentives for deployment of DER’s

• Clear framework for interconnection between Distributed Energy Resources (DER’s) and the national grid

2. Tools • Smart infrastructure

• Global standards

3. Dialog

• African Mini-Grid Developers Association

Andrew SeelausBusiness DevelopmentKenya: +254 743 944 428U.S.: +1 443 878 8084aseelaus@powergen-re.com

powergen-re.com

Appendix

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Micro-grid Development

PowerGen is a leader in site selection and customer acquisition

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PowerGen is the unparalleled leader in site selection and customer acquisition the African micro-grid market with a proven track record operating on-the-ground 5+ years in East Africa:

• Fully dedicated Customer and Sites team

• 2,000+ customers connected

• Highly robust and granular database tracking 250+ community and customer metrics

• Proprietary methodologies and systems to manage customer prospects

• In-house expertise on:

• Geographic and GIS analysis

• Site selection and surveying

• Data analytics

• Tariffs structuring

• Customer selection

• Customer signup

• Training and on-boarding

PowerGen Site Selection and Customer Acquisition Funnel

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Customer Sign-up

Customer Application

Surveys and Large Datasets

On-Ground Site Survey

PowerGen database captures demographic information and

GIS data from various sources to get a high-level

understanding of each site and plan surveying trips

Experienced Site Surveyors gather permits and licenses for

each district, town and site and then conduct full survey of

location with community leadership

Database and AnalyticsSites are narrowed down through a systematic scoring

methodology that analyzes 250+ data points about the

demand, logistics, social impact and grid connection

Customer team conducts application process and gathers

40+ data point per customer to inform connectivity,

reticulation, distribution, and tariffs

While full microgrid infrastructure is installed, the customer

team works with customers to sign into system, make first

payment, and try electricity

1

2

3

4

5

500 rural sites in Northern/Central TZ

150 site prioritized pipeline

Proprietary database, analytics and scoring methodology

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Tiered metrics and a refined analytical approach allows the PowerGen Customer and Site Acquisition team to

narrow down potential sites through key criteria within a systematic scoring methodology.

Impact

Demand

Logistics

Grid Connection

• School impact• Health care impact• Economic empowerment• Social empowerment

• Number of Customers• Current Usage• Tourism• Business metrics

• Mobile access• Road quality• Leadership support• Road Maintenance Frequency

• Nearest grid connection• KPLC/TANESCO future electricity

plan• Local government grid plans

Scoring Categories Data Sub-Group

Ad

just

able

Wei

ghti

ng

De

pen

din

g o

n P

roje

ct P

rio

riti

es

Using software tools and databases to design optimized systems

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Geographical Resource evaluation1

Generation Design & optimization2

Reticulation technical & economic assessment3

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Engineering, Procurement, Construction

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PowerGen’s ~11,000 sq. ft. workshop in Nairobi, KenyaEngineering, Design, Procurement, and Installation

Equipment Design Overview

46

(1) Layout Plan

(4) Electrical Equipment Layout

(2) Dimensions & Material Specs

(5) PowerBoxConstruction & Standardization

(3) Electrical Wiring

Project Coordination Overview

47

/

A comprehensive, repeatable schedule:

• Connects dependent activities

• Outlines clear lead times

• Documents resource requirements

Effective Workload & Team Prioritization:

• High-level schedule of all projects, milestones and resources

• Pipeline Committee decisions to plan projects with high-level resource availability

Template Project Checklists & Reports:

• Tracker of activities for each executional team

• Connects team leads to changes and delays

• Produce standard documents for internal & client handoffs

Project Coordination supports all teams across the Grid Execution division to schedule and track both projects and resources

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

0 500 1,000 1,500 2,000 2,500

Vill

age

Co

st

Cost per HH

Village Priority GroupsTop 25% 25-50% 50-75% 75-100%

Finlays village micro-grid overview

Village HID: CMS-CHEPKEMBE (B)

Unit: CHEMASE

Village Name CHEPKEMBE (B)

Demand metrics Reticulation map

Daily consumption 13.1 kWh

Peak draw 4.0 kW

# connections 45

# households 37

# other buildings 1

# lights 7

# metered connections 39

System requirements

Daily generation 17.4 kWh

Battery bank size 69.7 kWh

Inverter size 3.62 kW

Trench distance 735 m

Cable length 2,897 m

Include sub-hub Y

Key system components and high-level specification + CAPEX projection

PowerBox system: Grid-connected system

Component Selection

Solar No solar

Batteries No batteries

Inverter No inverter

PowerBox system output Check Metering

Daily generation N/A N/A Metering system:

Battery bank size N/A N/A Steama metering v4

Inverter size N/A N/A Cost per connection (KES) 8,120

PV capacity N/A Total metering cost (KES) 316,685

PowerBox cost (KES) 165,699

In-home wiring

Reticulation Lighting system:

Reticulation cable option: In-home wiring (all)

10mm Concentric Al Cable Cost per light (KES) 8,000

Cost per meter (KES) 65 Total in-home wiring cost (KES) 304,000 Note: includes other buildings as well as houses

Total cable cost (KES) 188,320

Reticulation mode: Lights

Trenched Lighting system:

Cost per meter (KES) 40 Standard 40W light

Total other cost (KES) 29,409 Cost per light (KES) 7,310

Total reticulation cost (KES) 217,730 Total lights cost (KES) 51,173

Sub-hub Grid connection cost

Sub-hub: Theoretical upgrade cost (KES): 119,813

Sub-hub (placeholder) Grid connection Y/N: Y

Sub-hub cost (KES) 91,380 Grid connection cost (KES) 119,813

TOTAL CAPEX (KES) 1,266,480

Installations Overview

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Pre-Site Work• Aggregation of information from 3 different

teams.• Checking and Testing of Equipment• Draw up Project Planning

Documentation• Budget, Settings, Distribution

Layout, Crew Plan, Quality Control Checklist, etc…

Pre

-Sit

e W

ork

On

-Sit

e W

ork

Han

do

ver

Grid Dev

Engineering

Supply Chain

Project Coordination

Installation Team

Installation Team

Grid Dev

Power System

Distribution

Customer Connection

Customer Payments

Customer Training

Testing

Site Handover Documentation

Installation Team

Grid Dev

Grid Ops

Project Planning Documentation

Handover• Handover Contains all Project Details

• Site Operation information• Keys, Settings of Equipment, Initial

Data etc…• As Built Information

• Design Changes, Materials used, etc…

• Customer Information

On-Site Work• Installation Broken into 4 sections

• Power System Installation• Includes Metering Central Server

and Communications• Distribution Network Installation• Customer Connection Points• Testing / Quality Control Checks

• Progress Reporting

Installation Team • Installation of Projects

• (See Left)• Installation Team Operations

• Day to Day Team Management• Compliance • Quarterly Planning

• Installation Team People Operations• Hiring, Training, Onboarding• Evaluations• Compensation and Advancement

High-level Installations process:

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Grid & Customer Management

PowerGen Metering & Communication System

50

MOD

Customers

1X

PowerGen Portal MNO

Telecom

Company

3G

PowerBox &

Meter Ground Server

Mobile Money and Cash Payments Accepted

Rapid Refresh Process

Remote & Local Issue Resolution

Constant monitoring and optimization

Call Center and Customer Service

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• All calls are answered by PowerGen Customer Service team in a standardized manner, providing a consistent service level across the organization

• Basic information about the customer and issue are gathered for each call

• Once basic situation is understood, customer issues are consistently troubleshot using the logical approach

• The PowerGen Customer Service team works to solve all payment, SIM and basic in-home wiring issues

• All outcomes are documented and all data is captured from every call for analysis

• Tool has built in ticket generation capabilities, allowing standard issue escalation with technical O&M team

Customer Troubleshooting Tool

Incoming Calls

Either:1. Customer issue is resolved2. Ticket escalated to the Technical O&M team

Logical Troubleshooting

Data & Tickets

Standard Service & Information Gathering

The PowerGen call center establishes comprehensive

understanding of the customer issue through detailed

fact-finding and implements an established procedure

for correcting issue in timely fashion

Operations Platform System Monitoring

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Smart Meters

Inverter, Charge & Color Controller

Solar & Batteries

Data Sources Analysis Actions

• Ability to implement predictive maintenance activities

• Immediate understanding of failure events at grids

• Awareness of customer payment and usage trends

• Ability to implement proactive customer engagement

Through analysis across data sources (customer demographics, payments, usage, generation,

storage, and consumption), the PowerGen Grid Operations team can remotely have full viability

into technical operation and customer activity, allowing the team to act proactively

Customer Payments &

Demographics

Demand Stimulation & Economic Development

Identification of Poor

Performance

Analytical methods for identifying poor performing grids, customer groups and other segments of the

business

Pricing and Profitability

Sustainable, Repeatable and Easy-to-understand tariffs

Products and Services

Tailored products and leases to certain customer segments

Sales and Channels

Right mix of channels & models to reach different customers

Marketing and Brand

Increase brand value and maximize the return on marketing investments

1

2

4

Partnerships Electricity consuming products & ancillary services3

Increasing electricity usage and revenue at micro-grids requires both projects that directly increase

energy consumption as well as initiatives that improve the underlying local economy

6

5Pilots with income generating

appliances (IGAs) across both Kenya and Tanzania have resulted in

increased electricity consumption & revenue

53

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Our customers are homeowners and entrepreneurs in villages throughout Kenya and Tanzania

“PowerGen electricity helped me with my business. I can put my drinks in the fridge and watch TV. I’ve received life comforts.I feel like I’m in town!”

Bahati JumaCook

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“From the time we were connected until now, we truly see its usefulness. There is a big benefit and without a doubt it’s a cheap price. We are truly thankful for these services.”

Wilfred SumayePharmacist

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