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How can we stimulate and exploit a market in Africa for small wind turbines

Nygaard, Ivan

Publication date:2017

Document VersionPeer reviewed version

Link back to DTU Orbit

Citation (APA):Nygaard, I. (Author). (2017). How can we stimulate and exploit a market in Africa for small wind turbines.Sound/Visual production (digital)

09.10.2017 | Technical University of Denmark1 |

Wind Energy Denmark,Visionairy projects in Wind Energy, 2 October 2017

How can we stimulate and exploit a market in Africa for small wind turbines

Ivan Nygaard, Senior ResearcherUNEP DTU Partnership, DTU Management Engineering

Outline

• Rural electrification in Sub Saharan Africa (SSA)

• Recent game changers

• New dynamic players

• Danida support to create new market opportunities for small wind turbines in Kenya

Rural electrification rates in SSA in 2014

09.10.2017 | Technical University of Denmark3 |

0%10%20%30%40%50%60%70%80%90%

100%

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Source: World Energy Outlook, IEA, 2016

Development of overall electrification rates in SSA

09.10.2017 | Technical University of Denmark4 |

0

10

20

30

40

50

60

70

80

90

100

2000 2002 2004 2006 2008 2010 2012 2014

Algeria

Angola

Benin

Botswana

Burkina Faso

Congo

Cote d’Ivoire

D.R. Congo

Egypt

Eritrea

Ethiopia

Ghana

Kenya

Source: World Energy Outlook, IEA, various years

Spatial delimitation, markets and technologies

• Criteria– Distance, Demand,

Density • Grid

– Hydro, Wind, Solar, Biomass, Geothermal

• Mini-grid– Hybrids: Micro-hydro, PV,

Wind, Biofuel, Biogas, gasification

• Off – grid– Solar PV, Wind pumps

Coverage 2007

2007-2015

Source: MMCE (2008). Vision 2020 de l'accès au services énergétiques modernes au Burkina Faso. Projet MEPRED

2008 financed by EU, UNDP and DANIDA

Deliminations of grid and off-grid in Kenya

09.10.2017 | Technical University of Denmark6 | Source: Kenya Electrification Strategy Project: Off-Grid Implementation Strategy, January 2017

Game changers

• Sustainable Energy for All (SE4ALL) - 2012– Universal access to energy– Doubling the share of renewable

energy– Doubling the rate of improvement

of energy efficiency• Sustainable Development Goals -

2015• Paris Agreement - 2015• Local policy and planning

09.10.2017 | Technical University of Denmark7 |

Efficient and cheaper systems• LED lamps• Reduced cost of PV• Improved battery technology

New business models• Communication technology• Mobile payment systems• Pay As You Go (PAYG)

Policy and financeTechnology and business models

PowerGenOwns and operates 12 mini-grids with a capacity of 1.4 - 6 kW. Installed additionally 18 for others in Kenya and Tanzania

Photo: Mathilde Brix Pedersen

• Owns and operates 4 mini-grids in Western Kenya, Kisiiarea since 2015

• Size, 1.5 kW, 10 kW, 20 kW, 50 kW• Currently building 20 mini-grids for own funding• 100 mini-grids in pipeline

Powerhive

Photo: Mathilde Brix Pedersen

Kenya Miniwind

Long term objectiveTo stimulate economic growth, poverty reduction, and sustainable energy supply in rural areas in Kenya.

The medium term objectiveTo create local employment and reduce the cost of electricity which will favour disadvantaged communities in rural areas:

• by facilitating partly local production of low-cost wind turbines and

• by demonstrating integration of these turbines in private and publically owned mini-grids in Kenya.

Vestas V 15 55 kW

Public private collaboration

Government

Public knowledgeinstitutions

Private companies

Civil society

• Rural ElectrificationAuthority

• Ministry of Energy• Energy Regulatory

Commision

• Kenya Climate Innovation Centre

• Technical University of Denmark

• Unep DTU• DTU Wind• DTU Electro

• Mini-grid developers• Wind turbine developer

(Vestas)• Local suppliers

Sustainable Energy

Challenges

Public part of project

a) being able to make quick and accurate decisions on where it makes sense to integrate wind power,

b) demonstrating the value of wind energy in reducing the need for storage, and

c) navigating and influencing the regulatory framework such that the private sector can be effectively mobilised to deliver mini-grids in the numbers that make a good business case.

Vestas

a) getting the price of wind-generated energy down to compete with solar,

b) making a turbine that is reliable, effective and cheap,

Photo: Mathilde Brix Pedersen

PV and control system by Powergen

Project outputs and activities

• Enabling framework and market creation for mini grids with wind power supported by relevant Kenyan authorities– Market study, enabling frameworks, need for standards

• Local community requirements reflected in mini-grids with wind power– Feasibility studies, community dialogue, model for expansion

• Capacity of mini-grid developers and local companies involved in production of wind turbines enhanced– Partly local production, suppliers, decission making tool, training of stakeholders

• Wind turbine designed, demonstrated and tested– Vestas design, demonstration, business model, contracting, maintenance, monitoring.

09.10.2017 | Technical University of Denmark13 |

Key messages

• Electrification rate in Sub Saharan Africa is low and has progressed slowly for years

• Africa is currently moving technologically, economically and financially

• Small scale wind energy can be an important market in combination with PV.

• The DMDP project will investigate and demonstrate this opportunity though a public - private partnership project

800 W turbine developed by Powergen

Thanks for your attention

09.10.2017 | Technical University of Denmark15 |