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www.renewables-made-in-germany.com Rise of PV Hybrid Systems Markus Schwaninger, Project Manager, GIZ

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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

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PV Hybrids for Retrofitting

(Fuel Saving through PV)

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

Source: RENAC

Load (kVA) vs. Daytime

, ,

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:

[email protected]

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

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PV Hybrids for Energy Access

(Greenfield PV-Hybrid Mini-Grids)

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

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PV Hybrids in the ‘renewables –

Made in Germany’ initiative

“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

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Thank you for your attention!

Markus Schwaninger

[email protected]

www.giz.de/projektentwicklungprogramm