why pv-diesel-hybrid systems? - giz

April 2013

PV-Diesel-Hybrid Systems for Industrial Applications – Why it makes sense to combine Diesel systems with PV

Diesel Genset PV

+

SMA Solar Technology AG 2 Source: SMA

Why do we talk about supplementing Diesel Gensets with PV?

“Price of diesel 'hits new record high‘. It is thought the rise will even have a

knock-on effect on food prices.”

- BBC news UK

„By upgrading our conventional Diesel Gensets to a PV-Diesel-Hybrid system, we save up to 450,000 liter Diesel fuel every year. This really provides a great business case for our company.“

- Statement from SMA project example (1MWp PV-Diesel-Hybrid

installation on a mining site in South Africa)

“PV system cost have gone down by 50% within the last three years. Now,

new business models become attractive.”

- Intersolar Conference 2012

SMA Solar Technology AG

Agenda

3

1 Introduction to SMA

2 The PV-Diesel-Hybrid Business Model

3 SMA’s System Solution for PV-Diesel-Hybrid Applications

4 Why SMA?


SMA Solar Technology AG – Key Facts

4

Founded in 1981

Sales 2012: EUR 1.5 billion

Over 30 GW installed SMA inverter power worldwide

Well-positioned in 21 markets all over the globe

More than 5500 employees

More than 1 000 professionals in research and development


Source: SMA

Headquarters Foreign companies Subsidiaries

Headquarter

SMA Solar Technology AG 5

Being technology and global market leader for PV inverters, SMA serves all market segments worldwide

On-grid

Residential 2 kW to 30 kW

Industrial To > 1 MW

Crystalline modules

Thin film

Concentrator modules Backup

Off-grid

All PV applications All performance ranges All module types

Residential < 2 kW

Commercial 30 kW to 500 kW

SMA has strong partnerships with all relevant PV stakeholders: module manufacturers, developers, wholesalers, EPCs, etc …


Source: SMA


SUNNY BOY/SUNNY MINI CENTRAL/SUNNY TRIPOWER Max. AC Power (kW)

* reactive-power compatible inverter

Small and medium power class – Complete product range for customized system design

6

With transformer

Without transformer

UL-listed

1 2 3 5 4 6 9 7 17 11 20

1200 3300, 3800

2100TL

6000A 5000A

6000,7000,

8000TL

4600A

10000TL,12000TL,

15000TL,17000TL*

3000US

4000US

3000, 4000,

5000TLUS 5000, 6000,

7000, 8000US

7000HV-11*

2000HF, 2500HF, 3000HF

2000, 2500,

3000HFUS

1300TL 1600TL

4000TL 5000TL 3000TL 3600TL

2500TLST 3000TLST

15000,20000TLEE

240

240US 6000,7000,

8000TLUS

9000,10000,

11000TLUS

9000,10000,

11000TLRP*

8000TL 9000TL 5000TL 6000TL 7000TL


8 Due to the wide product range SMA string inverters fit to all applications.

Source: SMA


500 1000 800 1250 1800

500MV 630MV 800MV 1000MV 1250MV

TCS500 TCS630 TCS800 TCS1000 TCS1250 TCS1600

600 700

TCS900 TCS1800

500HE-US 500, 630, 720, 760, 800CP-US,

1600MV

500CP XT/ 500CP-JP 630, 720, 760, 800, 850, 900CP XT

. . .

Without transformator

MV-Stations

UL-listed

SUNNY CENTRAL

Power Plant Solutions – inverters and system solutions for every plant design

Max. AC Power (kW)


8 SMA offers a complete range of central inverters for industrial applications (incl. MV stations).

Source: SMA


Routine Tests

8

Product quality is key at SMA – Leading technology through advanced tests

Endurance Tests

Advanced Tests

Optical inspection / Wiring test

Protective conductor inspection

High-voltage test / Function test

1000-h endurance test at max. temperature & full

power

Powercycle: 1000 cycles “start-operation-stop”

Humidity

Climate

Dust Source: SMA

Seismic Electromagnetic



Each day, over 20 MW of SMA PV inverters are installed worldwide

9 1. > 400 Mio. € net liquidity (cash and cash equivalents) as of 30.9.2012 2. Total Cost of Ownership Source: SMA project example

Why they chose SMA: Reliability (Technology & Company) Bankability of SMA1

Experience (over 30 GW installed capacity) Grid Management Capability Financial Performance (SMA Inverters increase yield + reduce TCO2)

Risk reduction

RoI maximization

53 MWp, Germany 85 MWp, Italy 14 MWp, South Korea 44 MWp, Thailand

16 MWp, USA 10 MWp, UAE 10 MWp, Greece 22 MWp, Spain



Reliable service offering is essential to deliver highest yield to our customers

10

Maintenance (New: remote/preventive)

Spare parts guarantee

Diagnosis & Repair

Inverter Availability

8 With more than 30 GW installed base & 750 highly trained service professionals we can handle any PV plant.

Risk reduction

PV plant downtime reduction

Quick and reliable trouble-shooting

No „it‘s not me“ discussion

Yield increase

Optimized power generation in any

environment (seamless integration/

efficient parameterization)

Key Service Offerings

Reduced risk and higher yield

Source: SMA



With over 20 years of experience in small hybrid installations, we now see a clear business case for industrial applications

11

SMA reference example:

Mining site in South Africa 2x800 kVA Perkins Gensets + 500 kVA grid connection Upgraded with 1 MWp PV

Modules: 4170 high-efficiency 240W poly-Si Inverter: 63 STP 17000 + FSC1

PV power production: ca. 1.8 GWh p.a. Annual savings: approx. 450,000 liter Diesel fuel

1. Fuel Save Controller Source: SMA



Agenda

12




4 Why SMA?


Why PV-Diesel-Hybrid systems?

13

Already today, we see a significant cost advantage of PV-Diesel-Hybrid systems compared to conventional Diesel Gensets. This gap will become even bigger in the future.

Source: SMA

Time

Electricity Cost ($/kWh)

Today

PV system cost decreased by > 50% in the last 3 years

Fuel cost for Diesel Gensets are steadily rising

PV-Diesel-Hybrid applications provide a good business opportunity for

Genset operators/end customers Players from the Genset world Players from the PV world

2 PV-Diesel-Hybrid Business Model


PV-Diesel-Hybrid applications cover a wide range of use cases

14

Utilities/ IPP2

(in off-grid/weak-grid regions)


8 What benefit brings a PV-Diesel-Hybrid system compared to genset pure play?

Criteria for a favorable industrial Hybrid case PV-Diesel-Hybrid use cases

Remote industries (e.g. mining, oil&gas, desalination)

Tourism (e.g. hotels, resorts)

Real estate (e.g. offices, warehouses)

Big Agriculture (e.g. irrigation systems)

Significant amount of 24/7 base load gensets

Fit of load curve and daily profile of PV power

Sufficient space available for PV installation

Application size for PV: > 0.5 MW

Effective Diesel fuel cost3 > 1 USD/liter for genset operator

End user mindset: need to save OpEx1, CO2 obligations, and/or will to ‘go green’

1. Operational Expenditures 2. Independent Power Producer 3. Effective cost at point of consumption including fuel transportation and storage cost etc. Source: SMA


PV-Diesel-Hybrid is already a real business case in high irradiation regions with effective Diesel cost > 1 USD/liter

16

0

2

4

6

8

10

12

14

16

18

20

22

Payback time (years)

Diesel cost1 (USD/l)

2.4 2.2 2.0 1.8 1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0

Annual PV full load time

1. Effective cost at point of consumption including fuel transportation and storage cost etc. Assumptions : 1 MW PV plant; 100% consumption of PV power possible; CapEx=2,000 USD/kWp; OpEx= 2% of CapEx p.a.; PV financing with 30% equity/70% debt with 7% interest rate and amortization time of 5 years; Genset efficiency 3.5 kWh/l (net electricity production); CapEx and Maintenance cost for Diesel genset not included, since PV is considered as add-on here, not as genset hardware substitution Source: Web search, SMA analysis

8 Given the Diesel price volatility and genset industry mindset, a short payback time is crucial.

Volatility span 2009-2012

Actual effective Diesel cost for genset operators in remote areas

Financially attractive area


2100 kWh/kWp (sunniest spots worldwide)

1800 kWh/kWp (e.g. Australia)

1500 kWh/kWp (e.g. India)

1200 kWh/kWp (e.g. Italy)

900 kWh/kWp (e.g. Germany)


A detailed cashflow analysis clearly shows the financial attractiveness of PV-Diesel-Hybrid

17 1. PV system cost will significantly depend on country and project specifications 2. Discounted Cash Flows Source: SMA analysis

Assumptions (Base Case) DCF2 Analysis

System is designed such that all generated PV energy can be used

No annual increase of fuel cost included!

PV plant size: 2 MWp

Solar irradiation: 1600 kWh/kWp p.a.

PV system cost1: 2000 USD/kWp CapEx (+ OpEx 2% p.a.)

Effective fuel cost: 1.30 USD/liter

Genset efficiency: 3.5 kWh/liter

PV financing: 30% equity, 70% debt (with 7% interest rate and 5 year amortization time); cashflow discount factor: 8%

Payback time of the investment for PV-Diesel-Hybrid is just 4-5 years.

After 10 years, effective (net) savings are nearly 4 Mio. USD.

-4

-2

0

2

4

6

8

12 10 9 8 7 6 5

Effective savings2 (Mio. USD)

Years

20 18 16 14 4 3 2 1 0

Debt

Equity

Break-even after 4-5 years



Agenda

18




4 Why SMA?


Industrial loads in remote areas are typically supplied by conventional Genset systems

3 SMA‘s Hybrid System Solution

Genset System The main component in

the electricity supply system

Powerhouse Includes main busbars, genset controllers, etc.

Industrial Load e.g. Mining facility, cement

factory, metal works



Adding Photovoltaics is the first step towards a future-proof system...

PV Modules/BOS1

All module technologies supported PV inverter

The heart of SMA‘s solution for hybrid

systems

SMA equipment 1. Balance of System (e.g. cabling, module racks, etc)







... but a smart communication between Genset and PV is mandatory to leverage the full hybrid potential


Data Acquisition Module Measures the actual load both active and reactive

PV Main Controller Module Monitors genset status and

computes maximum allowed PV power

Interface Module Acts as a data concentrator and data logging device for

Sunny Tripower inverters

PV Modules/BOS1

All module technologies supported




PV inverter The heart of SMA‘s solution for hybrid

systems



SMA equipment 1. Balance of System (e.g. cabling, module racks, etc)

Integration of storage will be the next step in order to increase the PV penetration

Data Acquisition Module Measures the actual load both active and reactive

PV Main Controller Module Monitors genset status and

computes maximum allowed PV power

Interface Module Acts as a data concentrator and data logging device for

Sunny Tripower inverters

PV Modules/BOS1

All module technologies supported




Battery Inverter (optional2, for increased

PV penetration)

PV inverter The heart of SMA‘s solution for hybrid

systems



SMA equipment


1. Balance of System (e.g. cabling, module racks, etc) 2. Available by end of 2013


The SMA Fuel Save Controller enables intelligent communication between PV, gensets, and load

23 1. Ratio between nominal PV power and nominal genset power (of gensets running at the same time) 2. Accounting e.g. for minimum genset load and spinning reserve Source: SMA analysis

8 With the Fuel Save Controller + SMA Inverters, we can achieve PV penetration levels1 up to 60% while still securing overall system stability and smooth genset control2.



How a typical day could look like (1/10)

24

PV Plant Generator power house

Diesel Gensets

Genset controllers

FSC10CONT(PV Main controller)

Loads

FSC10DAQ(Data acquisition)

FSC10IFM(Interface Module)

STP and PV

SCADA systemPlant controller

Internal control bus

100 kW

1 000 kW

100 kW

400 kW

0 kW

400 kW

0 kW

400 kW

0 kW

800 kW

0 kW

30 .. 100 %

30 .. 100 %

30 .. 100 %

0

200

400

600

800

1.000

1.200

0:0

0

2:0

0

4:0

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6:0

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8:0

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:00

12

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20

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22

:00

24h load and PV energy generation profile


Source: SMA



25


Diesel Gensets

Genset controllers


Loads



STP and PV



800 kW

1 000 kW

300 kW

400 kW

300 kW

400 kW

0 kW

400 kW

200 kW

800 kW

560 kW

30 .. 100 %

30 .. 100 %

30 .. 100 %

0

200

400

600

800

1.000

1.200

0:0

0

2:0

0

4:0

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6:0

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8:0

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10

:00

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Source: SMA



26


Diesel Gensets

Genset controllers


Loads



STP and PV



800 kW

1 000 kW

120 kW

400 kW

120 kW

400 kW

0 kW

400 kW

560 kW

800 kW

560 kW

30 .. 100 %

30 .. 100 %

30 .. 100 %

0

200

400

600

800

1.000

1.200

0:0

0

2:0

0

4:0

0

6:0

0

8:0

0

10

:00

12

:00

14

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16

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18

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20

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22

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Source: SMA



27


Diesel Gensets

Genset controllers


Loads



STP and PV



800 kW

1 000 kW

240 kW

400 kW

0 kW

400 kW

0 kW

400 kW

560 kW

800 kW

560 kW

30 .. 100 %

30 .. 100 %

30 .. 100 %

Spinning reserve from one genset

not sufficient

0

200

400

600

800

1.000

1.200

0:0

0

2:0

0

4:0

0

6:0

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8:0

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10

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12

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14

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16

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18

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20

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22

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Source: SMA



28


Diesel Gensets

Genset controllers


Loads



STP and PV



800 kW

1 000 kW

380 kW

400 kW

0 kW

400 kW

0 kW

400 kW

420 kW

800 kW

420 kW

30 .. 100 %

30 .. 100 %

30 .. 100 %

Reduce PV setpoint to force 2nd genset

to start!

0

200

400

600

800

1.000

1.200

0:0

0

2:0

0

4:0

0

6:0

0

8:0

0

10

:00

12

:00

14

:00

16

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18

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20

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22

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Source: SMA



29


Diesel Gensets

Genset controllers


Loads



STP and PV



800 kW

1 000 kW

190 kW

400 kW

190 kW

400 kW

0 kW

400 kW

420 kW

800 kW

420 kW

30 .. 100 %

30 .. 100 %

30 .. 100 %

0

200

400

600

800

1.000

1.200

0:0

0

2:0

0

4:0

0

6:0

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8:0

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10

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12

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16

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18

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20

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22

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Source: SMA


0

200

400

600

800

1.000

1.200

0:0

0

2:0

0

4:0

0

6:0

0

8:0

0

10

:00

12

:00

14

:00

16

:00

18

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20

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22

:00



30


Diesel Gensets

Genset controllers


Loads



STP and PV



800 kW

1 000 kW

360 kW

400 kW

360 kW

400 kW

0 kW

400 kW

80 kW

800 kW

420 kW

30 .. 100 %

30 .. 100 %

30 .. 100 %


Source: SMA



31


Diesel Gensets

Genset controllers


Loads



STP and PV



800 kW

1 000 kW

190 kW

400 kW

190 kW

400 kW

0 kW

400 kW

420 kW

800 kW

420 kW

30 .. 100 %

30 .. 100 %

30 .. 100 %

0

200

400

600

800

1.000

1.200

0:0

0

2:0

0

4:0

0

6:0

0

8:0

0

10

:00

12

:00

14

:00

16

:00

18

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20

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22

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Source: SMA



32


Diesel Gensets

Genset controllers


Loads



STP and PV



950 kW

1 000 kW

250 kW

400 kW

250 kW

400 kW

250 kW

400 kW

200 kW

800 kW

360 kW

30 .. 100 %

30 .. 100 %

30 .. 100 %

0

200

400

600

800

1.000

1.200

0:0

0

2:0

0

4:0

0

6:0

0

8:0

0

10

:00

12

:00

14

:00

16

:00

18

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20

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Source: SMA



33


Diesel Gensets

Genset controllers


Loads



STP and PV



1 000 kW

1 000 kW

330 kW

400 kW

330 kW

400 kW

340 kW

400 kW

0 kW

800 kW

360 kW

30 .. 100 %

30 .. 100 %

30 .. 100 %

0

200

400

600

800

1.000

1.200

0:0

0

2:0

0

4:0

0

6:0

0

8:0

0

10

:00

12

:00

14

:00

16

:00

18

:00

20

:00

22

:00



Source: SMA


SMA’s solution allows for a scalable deployment of PV

35 1. Ratio between PV peak power and genset nominal power Source: SMA

PV Inverters

Robust design proven in harsh environments

High tolerance for wide voltage and frequency ranges

Integrated management functions for weak grid

Up to 20% PV

penetration1 possible

Battery Inverters

Storage integration to substitute spinning reserve/idle genset operation

Spinning Reserve

Grid Manager

Increased PV penetration of 100-120% to reach economic optimum, including support for diesel off-mode

Fuel Save Controller

Intelligent and fast interfacing between load, genset and PV inverter

Several operation modes for maximum compability

Together with SMA inverters: up to 60% PV penetration1 possible


PV Penetration

up to 60 %

100 % + up to 20 %

PV PENETRATION of 20 % means: For each 1 MW installed Genset capacity

you can add 200 kW of PV

PV PENETRATION of 60 % means: For each 1 MW installed Genset capacity

you can add 600 kW of PV

http://www.sma.de/produkte/solar-wechselrichter-ohne-transformator/sunny-tripower-8000tl-10000tl-12000tl-15000tl-17000tl.html


SMA provides tools for optimal system design and translates this directly into financial benefit for the end customer

36

Optimal system design Simulation of financial benefit

-2000

0

2000

4000

6000

8000

10000

12000

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Years

Effective Savings (cumulative discounted cashflows)

Savings (´000 USD)

Specific solar irradiation, genset power and load

profile are considered to determine the optimal PV

system

Genset specifications (minimum load, spinning

reserve etc.) are also taken into account

Power Audit and grid stability analysis is offered as

additional service

Payback time for PV investment is analyzed as a

function of the fuel price

For a fixed fuel price, the overall saving potential

for the hybrid plant owner is analyzed based on a

DCF1 simulation

1. DCF = discounted cash flow Source: SMA analysis

8 With quick, transparent and reliable information on technical and financial feasibility, we support our customers to find the best solution!



Agenda

37




4 Why SMA?


Superior system technology leads to higher saving potential

38 Source: SMA

PV-Diesel-Hybrid system technology … Optimized system solution …

4 Why SMA?

… and highest fuel saving potential … plus superior system know-how


Project example: 500 kWp hybrid system in Thailand running successfully since April 2004

39

500 kWp PV plant with SMA central inverters

2 x 250 kVA SMA battery inverters

Local grid powered with 5 MVA hydro and

6 MVA diesel gensets

Saves ~ 200 000 L of diesel p.a. and 483

tons of CO2 emissions

4 Why SMA?

Source: SMA project example


307 kWp PV system

Sunny Tower solution

5 CAT gensets available

Only 3h per day of grid availability

6 000 USD savings in first 3 months

of operation

Operated in highly unstable seismic

zone 3D

40

Project example: Hybrid system for US-Embassy in Bujumbura (Burundi)

4 Why SMA?

Source: SMA project example


SMA has been awarded repeatedly for its innovative strength

41

Photon inverter test

”sehr gut +” for

Sunny Tripower 20000TL-HE

INTERSOLAR Award 2010

for Sunny Central 800CP

Best Innovator Award

2010/2011

8 Continued technological innovation is one of the main drivers of our success.

Source: SMA analysis

4 Why SMA?


Thank you for your attention!

Jörg Fischmann Sales Manager for Indonesia and Malaysia

Joerg. [email protected] Mobile+4915116820720

why pv-diesel-hybrid systems? - giz

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