![Page 1: PV BUSINESS IN MINIGRIDS - dede.go.th Vicente Salas v2.pdf · PV Business in Minigrids Business (Tariff) options for Minigrids Energy as a service (Fee for service provided) Capacity-](https://reader033.vdocument.in/reader033/viewer/2022041718/5e4ca9f1898ef108b50b41c2/html5/thumbnails/1.jpg)
PV BUSINESS IN MINIGRIDS
PV AND UTILITIES WORKSHOP, Bangkok (Thailand)
ASEAN POWER WEEK
Dr. Vicente Salas
3rd September 2015
ELECTRONIC TECHNOLOGY DEPARTMENT
POWER ELECTRONIC SYSTEM GROUP (GSEP)
![Page 2: PV BUSINESS IN MINIGRIDS - dede.go.th Vicente Salas v2.pdf · PV Business in Minigrids Business (Tariff) options for Minigrids Energy as a service (Fee for service provided) Capacity-](https://reader033.vdocument.in/reader033/viewer/2022041718/5e4ca9f1898ef108b50b41c2/html5/thumbnails/2.jpg)
PV Business in Minigrids
People withouth access to electricity
Source: World Alliance for Decentralized Energy
![Page 3: PV BUSINESS IN MINIGRIDS - dede.go.th Vicente Salas v2.pdf · PV Business in Minigrids Business (Tariff) options for Minigrids Energy as a service (Fee for service provided) Capacity-](https://reader033.vdocument.in/reader033/viewer/2022041718/5e4ca9f1898ef108b50b41c2/html5/thumbnails/3.jpg)
PV Business in Minigrids
Possible solution
Off-Minigrid
To be considered
Technical point of view
Business point of view
![Page 4: PV BUSINESS IN MINIGRIDS - dede.go.th Vicente Salas v2.pdf · PV Business in Minigrids Business (Tariff) options for Minigrids Energy as a service (Fee for service provided) Capacity-](https://reader033.vdocument.in/reader033/viewer/2022041718/5e4ca9f1898ef108b50b41c2/html5/thumbnails/4.jpg)
PV Business in Minigrids
Benefits about Minigrids
Technical/operational
Improved electrical services
Financial
Improved LCOE for operators
Social
Opportunity for rural enterprise
Environmental
Environmental protection
![Page 5: PV BUSINESS IN MINIGRIDS - dede.go.th Vicente Salas v2.pdf · PV Business in Minigrids Business (Tariff) options for Minigrids Energy as a service (Fee for service provided) Capacity-](https://reader033.vdocument.in/reader033/viewer/2022041718/5e4ca9f1898ef108b50b41c2/html5/thumbnails/5.jpg)
PV Business in Minigrids
Risks about Minigrids
Technical
Improved electrical services
Organisational
Inadequate business models
Geographical isolation
Supply and installation issues
Financial
Appropriate pricing and payments
Others…
![Page 6: PV BUSINESS IN MINIGRIDS - dede.go.th Vicente Salas v2.pdf · PV Business in Minigrids Business (Tariff) options for Minigrids Energy as a service (Fee for service provided) Capacity-](https://reader033.vdocument.in/reader033/viewer/2022041718/5e4ca9f1898ef108b50b41c2/html5/thumbnails/6.jpg)
PV Business in Minigrids
Technical point of view
![Page 7: PV BUSINESS IN MINIGRIDS - dede.go.th Vicente Salas v2.pdf · PV Business in Minigrids Business (Tariff) options for Minigrids Energy as a service (Fee for service provided) Capacity-](https://reader033.vdocument.in/reader033/viewer/2022041718/5e4ca9f1898ef108b50b41c2/html5/thumbnails/7.jpg)
PV Business in Minigrids
General scheme Mini-grid
![Page 8: PV BUSINESS IN MINIGRIDS - dede.go.th Vicente Salas v2.pdf · PV Business in Minigrids Business (Tariff) options for Minigrids Energy as a service (Fee for service provided) Capacity-](https://reader033.vdocument.in/reader033/viewer/2022041718/5e4ca9f1898ef108b50b41c2/html5/thumbnails/8.jpg)
PV Business in Minigrids
PV Penetration
![Page 9: PV BUSINESS IN MINIGRIDS - dede.go.th Vicente Salas v2.pdf · PV Business in Minigrids Business (Tariff) options for Minigrids Energy as a service (Fee for service provided) Capacity-](https://reader033.vdocument.in/reader033/viewer/2022041718/5e4ca9f1898ef108b50b41c2/html5/thumbnails/9.jpg)
PV Business in Minigrids
Minigrids: types
Micro (less than 5 kW)
Small (5-30 kW)
Medium (30-100 kW)
Large (100 kW-1 MW)
Very large (greater than 1 MW)
![Page 10: PV BUSINESS IN MINIGRIDS - dede.go.th Vicente Salas v2.pdf · PV Business in Minigrids Business (Tariff) options for Minigrids Energy as a service (Fee for service provided) Capacity-](https://reader033.vdocument.in/reader033/viewer/2022041718/5e4ca9f1898ef108b50b41c2/html5/thumbnails/10.jpg)
PV Business in Minigrids
Real current implementation: very large MG
![Page 11: PV BUSINESS IN MINIGRIDS - dede.go.th Vicente Salas v2.pdf · PV Business in Minigrids Business (Tariff) options for Minigrids Energy as a service (Fee for service provided) Capacity-](https://reader033.vdocument.in/reader033/viewer/2022041718/5e4ca9f1898ef108b50b41c2/html5/thumbnails/11.jpg)
PV Business in Minigrids
Example: Kema (Malaysia) 3.3 MW
![Page 12: PV BUSINESS IN MINIGRIDS - dede.go.th Vicente Salas v2.pdf · PV Business in Minigrids Business (Tariff) options for Minigrids Energy as a service (Fee for service provided) Capacity-](https://reader033.vdocument.in/reader033/viewer/2022041718/5e4ca9f1898ef108b50b41c2/html5/thumbnails/12.jpg)
PV Business in Minigrids
Example: Kema (Malaysia) 3.3 MW
![Page 13: PV BUSINESS IN MINIGRIDS - dede.go.th Vicente Salas v2.pdf · PV Business in Minigrids Business (Tariff) options for Minigrids Energy as a service (Fee for service provided) Capacity-](https://reader033.vdocument.in/reader033/viewer/2022041718/5e4ca9f1898ef108b50b41c2/html5/thumbnails/13.jpg)
PV Business in Minigrids
Example: Kema (Malaysia) 3.3 MW
![Page 14: PV BUSINESS IN MINIGRIDS - dede.go.th Vicente Salas v2.pdf · PV Business in Minigrids Business (Tariff) options for Minigrids Energy as a service (Fee for service provided) Capacity-](https://reader033.vdocument.in/reader033/viewer/2022041718/5e4ca9f1898ef108b50b41c2/html5/thumbnails/14.jpg)
PV Business in Minigrids
Minigrids: types
From technical point of view
Minigrids for MW scale stand-alone PV/Diesel hybrid
mini grids systems are ready
Large power converters are in the market
Example: Leonics (Thailand manufacturer)
![Page 15: PV BUSINESS IN MINIGRIDS - dede.go.th Vicente Salas v2.pdf · PV Business in Minigrids Business (Tariff) options for Minigrids Energy as a service (Fee for service provided) Capacity-](https://reader033.vdocument.in/reader033/viewer/2022041718/5e4ca9f1898ef108b50b41c2/html5/thumbnails/15.jpg)
PV Business in Minigrids
Bussiness in Minigrids
From the technical point of view everything is
ready
Now, the problem is the business
But…we can find some solutions
![Page 16: PV BUSINESS IN MINIGRIDS - dede.go.th Vicente Salas v2.pdf · PV Business in Minigrids Business (Tariff) options for Minigrids Energy as a service (Fee for service provided) Capacity-](https://reader033.vdocument.in/reader033/viewer/2022041718/5e4ca9f1898ef108b50b41c2/html5/thumbnails/16.jpg)
PV Business in Minigrids
Spending annual energy access
Source: World Alliance for Decentralized Energy
![Page 17: PV BUSINESS IN MINIGRIDS - dede.go.th Vicente Salas v2.pdf · PV Business in Minigrids Business (Tariff) options for Minigrids Energy as a service (Fee for service provided) Capacity-](https://reader033.vdocument.in/reader033/viewer/2022041718/5e4ca9f1898ef108b50b41c2/html5/thumbnails/17.jpg)
PV Business in Minigrids
Tariff applied to Minigrids
Consumers: ability to pay
Consumers: willingness to pay
![Page 18: PV BUSINESS IN MINIGRIDS - dede.go.th Vicente Salas v2.pdf · PV Business in Minigrids Business (Tariff) options for Minigrids Energy as a service (Fee for service provided) Capacity-](https://reader033.vdocument.in/reader033/viewer/2022041718/5e4ca9f1898ef108b50b41c2/html5/thumbnails/18.jpg)
PV Business in Minigrids
Financing models for Minigrids
Fully-subsidized
Costs are fully subsidized by governments/donors
Partially-subsidized
Large subsidies for capital costs
O&M cost recovery occurs from tariff
For profit
No subsidies
O&M costs covered by tariff collection
Tariffs provide a return on the non- subsidized portion of the capital
cost
![Page 19: PV BUSINESS IN MINIGRIDS - dede.go.th Vicente Salas v2.pdf · PV Business in Minigrids Business (Tariff) options for Minigrids Energy as a service (Fee for service provided) Capacity-](https://reader033.vdocument.in/reader033/viewer/2022041718/5e4ca9f1898ef108b50b41c2/html5/thumbnails/19.jpg)
PV Business in Minigrids
Business (Tariff) options for Minigrids
Energy as a service (Fee for service provided)
Capacity- based tariff (Maximum power amount)
Consumption -based Tariff (Energy consumption per time)
Seasonal Tariff (Price established regarding environmental constraints)
Per-Device (Number of devices allowance)
Lifeline and Inverted Block Tariff (Tariff increases with consumption)
Binomial Tariff (Different price regarding to power source type or period
of the day)
![Page 20: PV BUSINESS IN MINIGRIDS - dede.go.th Vicente Salas v2.pdf · PV Business in Minigrids Business (Tariff) options for Minigrids Energy as a service (Fee for service provided) Capacity-](https://reader033.vdocument.in/reader033/viewer/2022041718/5e4ca9f1898ef108b50b41c2/html5/thumbnails/20.jpg)
PV Business in Minigrids
Energy as a service
Energy consumption per time
Customer pays per energy consumption
Meter and reader required
Incentives energy efficiency
![Page 21: PV BUSINESS IN MINIGRIDS - dede.go.th Vicente Salas v2.pdf · PV Business in Minigrids Business (Tariff) options for Minigrids Energy as a service (Fee for service provided) Capacity-](https://reader033.vdocument.in/reader033/viewer/2022041718/5e4ca9f1898ef108b50b41c2/html5/thumbnails/21.jpg)
PV Business in Minigrids
Consumption-based tariff
Energy consumption per time
Customer pays per energy consumption
Meter and reader required
Incentivises energy efficiency
![Page 22: PV BUSINESS IN MINIGRIDS - dede.go.th Vicente Salas v2.pdf · PV Business in Minigrids Business (Tariff) options for Minigrids Energy as a service (Fee for service provided) Capacity-](https://reader033.vdocument.in/reader033/viewer/2022041718/5e4ca9f1898ef108b50b41c2/html5/thumbnails/22.jpg)
PV Business in Minigrids
Capacity-base tariff
Maximum power amount
Flat-Rate or subscription tariff
Customer pays a maximum power amount
Overcurrent device / No metering
![Page 23: PV BUSINESS IN MINIGRIDS - dede.go.th Vicente Salas v2.pdf · PV Business in Minigrids Business (Tariff) options for Minigrids Energy as a service (Fee for service provided) Capacity-](https://reader033.vdocument.in/reader033/viewer/2022041718/5e4ca9f1898ef108b50b41c2/html5/thumbnails/23.jpg)
PV Business in Minigrids
Per-device tariff
Number of devices allowance
Power tariff adaptation
Customer pays per number of devices
Reduces initial costs / No meter nor load limiter
Pre-paid but requires on-site control
![Page 24: PV BUSINESS IN MINIGRIDS - dede.go.th Vicente Salas v2.pdf · PV Business in Minigrids Business (Tariff) options for Minigrids Energy as a service (Fee for service provided) Capacity-](https://reader033.vdocument.in/reader033/viewer/2022041718/5e4ca9f1898ef108b50b41c2/html5/thumbnails/24.jpg)
PV Business in Minigrids
Lifeline/inverted block tariff
Tariff increases with consumption
Customer charge increases with consumption
Cross-subsidy from high to low-consumption
customer
![Page 25: PV BUSINESS IN MINIGRIDS - dede.go.th Vicente Salas v2.pdf · PV Business in Minigrids Business (Tariff) options for Minigrids Energy as a service (Fee for service provided) Capacity-](https://reader033.vdocument.in/reader033/viewer/2022041718/5e4ca9f1898ef108b50b41c2/html5/thumbnails/25.jpg)
PV Business in Minigrids
Binomial tariff
Different price regarding to power source type or
period of the day
Tariff varies by time of day (peak / non- peak) and
need for battery/diesel generator
Attractive tariff for hybrid MGs
Aims for energy efficiency
![Page 26: PV BUSINESS IN MINIGRIDS - dede.go.th Vicente Salas v2.pdf · PV Business in Minigrids Business (Tariff) options for Minigrids Energy as a service (Fee for service provided) Capacity-](https://reader033.vdocument.in/reader033/viewer/2022041718/5e4ca9f1898ef108b50b41c2/html5/thumbnails/26.jpg)
PV Business in Minigrids
Seasonal tariff
Price established regarding environmental
constraints
Price defined by seasonal variation of renewable
energy availability
Aims for energy efficiency
![Page 27: PV BUSINESS IN MINIGRIDS - dede.go.th Vicente Salas v2.pdf · PV Business in Minigrids Business (Tariff) options for Minigrids Energy as a service (Fee for service provided) Capacity-](https://reader033.vdocument.in/reader033/viewer/2022041718/5e4ca9f1898ef108b50b41c2/html5/thumbnails/27.jpg)
PV Business in Minigrids
Energy as a service
Fee for service provided
Energy not sold per unit of energy but for service
provided
Pre or post paid: Kg, Hours, Liters, etc.
![Page 28: PV BUSINESS IN MINIGRIDS - dede.go.th Vicente Salas v2.pdf · PV Business in Minigrids Business (Tariff) options for Minigrids Energy as a service (Fee for service provided) Capacity-](https://reader033.vdocument.in/reader033/viewer/2022041718/5e4ca9f1898ef108b50b41c2/html5/thumbnails/28.jpg)
PV Business in Minigrids
Tariff determination
![Page 29: PV BUSINESS IN MINIGRIDS - dede.go.th Vicente Salas v2.pdf · PV Business in Minigrids Business (Tariff) options for Minigrids Energy as a service (Fee for service provided) Capacity-](https://reader033.vdocument.in/reader033/viewer/2022041718/5e4ca9f1898ef108b50b41c2/html5/thumbnails/29.jpg)
Thank you and have a nice day!
Dr. Vicente Salas
ELECTRONIC TECHNOLOGY DEPARTMENT
POWER ELECTRONIC SYSTEM GROUP (GSEP)