Fiji: Distributed Generation and Energy Storage

Makereta Sauturaga Director, Fiji Department of Energy

Luis A. Vega, Ph.D.PICHTR

2

Table of Contents• Fiji Background• Energy Consumption• Electricity & Energy Storage

National Grid (c/o Fiji Electricity Authority)Distributed: Rural Sector (c/o Department of

Energy)

• Future: Grid Connected Renewable Energy SystemsH2 Fuel Cells

Wind/PV Hybrid and Solar Home Systems (SHSs)Energy Service Companies for SHSs

3

Fiji Background

4

5

Fiji

• Population (‘02): 826,300

• GDP/Capita (‘02): F$ 4,200Power-Purchase-Parity: F$ 9,900

• Annual Inflation (‘00-’03): 1.5 to 3 %

• National Tariff (F$/kWh): 0.206 [1 F$ 0.5 US$]

6

Energy Consumption

Pacific Islands annual per capita energy consumption (‘90)

Fiji 1,030 kgoe (43 MJ)

Fiji Percentage Energy Consumption by Source (’90-’00): Biomass, Petroleum, Hydro

Biomass Sources

7

0

200

400

600

800

1000

1200

$0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000

PPP

kgo

e/p

erso

n-y

ear

Palau

Fiji

Cook Is.

Solomon Is.

PNG

Samoa

Tonga

FSM

Marshall Is.

Vanuatu

Kiribati

Tuvalu

8

Percentage Energy Consumption by Source

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Year

Fossil Fuels

Biomass

Hydro Equivalent

9

Biomass Energy (2001)

• Bagasse 42%

• Household Fuelwood 39%

• Agro/Industrial Fuelwood 9%

• Coconut Husks 10%

10

Electricity & Energy Storage

• Fiji Electricity Authority (FEA) National Grid– Hydropower; Diesel; Bagasse.

• Fiji Department of Energy (FDoE) Distributed: Rural Sector– Diesel; Microhydro; Wind/PV Hybrid;

PV-lighting (Solar Home Systems).

11

FEA National Grid

• Five separate grids: 675 GWh/year- Viti Levu Interconnected System (VLIS)& Rakiraki: 93%- Ovalau: 1.5%- Labasa (Vanua Levu): 4.5%- Savusavu (Vanau Levu): 1%

• Storage: Monasavu Dam/ Wailoa Hydropower (80 MW)

12

Monasavu Dam Storage

• Nadrau Plateau 900 m ASL

• Nominal Depth 80 m (x 670 Ha)

• Catchment Area 110 km2

• 11 kV 132 kV 140 km transmission to Suva

13

14

National Grid Electricity Production

0

100

200

300

400

500

600

700

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Year

GW

h/ye

ar

15

National Grid Electricity Production

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Year

HydroDiesel FEAIPP FSC

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Business-as-Usual Growth Scenarios

0 GWh

200 GWh

400 GWh

600 GWh

800 GWh

1000 GWh

1200 GWh

1400 GWh

1600 GWh

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

FEA High Growth

2003 Growth

Hydro & FSC

17

Distributed Generation (FDoE)

• 470 microgrid Diesel ( 15 kW): 4 hrs/day, 50 houses/village, 5 people/house 3.4 GWh/year ( 0.5 % FEA)

• 5 Provincial Centers minigrid diesel: 12 to 24 hrs/day 1 GWh/year

• 5 run-of-river Microhydro (< 100 kW) 4 hrs/day 0.4 GWh/day

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Distributed Generation (FDoE)

• Nabouwalu Wind/PV Hybrid 0.15 GWh/year

• 490 Solar Home System (SHS) Units

0.04 GWh/year

[SHS Potential: 1 GWh/year]

• Storage: Chemical (lead acid batteries)

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Cost of Delivered Electricity

0.00 US$/kWh

0.25 US$/kWh

0.50 US$/kWh

0.75 US$/kWh

1.00 US$/kWh

1.25 US$/kWh

1.50 US$/kWh

1.75 US$/kWh

2.00 US$/kWh

Grid Tariff Suva (FEA) Ovalau

(FEA)

Vanua Levu

(FEA)

Provincial

Center

Diesel

Scheme

SHS- 1 SHS- 2

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Future

• Grid Connected Renewable Energy Systems

• H2 Fuel Cells

• Wind/PV Hybrid and Solar Home Systems (SHSs)

• Energy Service Companies for SHSs

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Feasibility of Grid-Connected Renewable Energy Systems

• Estimate cost-of-electricity (COE) production with different technologies (excluding transmission)

National Tariff: 10 US-cents/kWhAvoided Cost: 6.5 US-cents/kWh

[1 F$ 0.5 US$]

22

Cost of Electricity Production

COE ($/kWh) = CC + OMR&R + Fuel + Profit - Environmental Credit

CC = Capital Cost AmortizationOMR&R = Operations + Maintenance

+ Repair + Replacement

Tariff = COE - Subsidy

23

Grid Technologies

• Well-Established: Wind Farms, PV Arrays, Biomass as fuel in Thermal Plant, Hydroelectric, Geothermal

• Future: Ocean Thermal Energy Conversion (OTEC) and Wave Power

• CC Installed Capital Cost

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COE with 5 to 20 MW Wind Farms

• CC: US$1140/kW• Annual-Average-Wind-Speed of

9 m/s corresponds to Capacity Factor (CF) of 43%

• Annual-Average-Wind-Speed of 7 m/s corresponds to CF of 25%

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TECHNOLOGY COE N (years)/I (%) CF (%) Wind 4.4 15/10 43

3.6 30/10 “ 3.3 15/5 “ 2.4 30/5 “ 7.6 15/10 25 6.3 30/10 “ 5.7 15/5 “ 4.2 30/5 “

26

COE with 1 MW PV Array

• CC: US$6500/kW [PV panels with Inverter]

• Use Annual-Average-Daily-Insolation around Nadi Airport corresponding to Capacity Factor (CF) of 21%

27

TECHNOLOGY COE N (years)/I (%) CF (%) PV Arrays 46.5 15/10 21

37.5 30/10 “ 34.0 15/5 “ 23.0 30/5 “

28

COE with 50 MW Thermal Plant using Biomass as Fuel

• CC: US$2000/kW using biomass with heat value of 12,000 Btu/kWh at 2 US$/MBtu

• Seasonal operation results in 50 % capacity factor.

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TECHNOLOGY COE N (years)/I (%) CF (%) Biomass for Thermal Plant 8.9 15/10 50

7.7 30/10 “ 7.3 15/5 “ 5.9 30/5 “

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COE with 100 MW Grid-Connected

Hydroelectric Plant • CC : US$2000/kW. A

conservative capacity factor of 45 % is assumed with operation and maintenance cost at 0.5 cents/kWh

• The COE is highly dependent on site characteristics

• Land Issue a tremendous challenge

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TECHNOLOGY COE N (years)/I (%) CF (%) Hydroelectric 5.9 30/10 45

3.8 30/5 “

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COE with 5 to 50 MW Geothermal Plants

• To produce electricity the geothermal resource must be about 250 C

• Presently in California and Hawaii COE:  4 to 8 US-cents/kWh

33

COE with 100 MW OTEC Plant

• Extrapolation from small experimental plant operations in Hawaii by PICHTR

• CC: US$4500/kW; CC is highly dependent on plant size, do not use this value for smaller plants

• Temperature difference 22 C and plantship moored 10 km offshore

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TECHNOLOGY COE N (years)/I (%) CF (%) OTEC 8.8 15/10 85

7.3 30/10 “ 6.7 15/5 “ 4.8 30/5 “

35

COE with 1 MW Wave Power Plant

• Projected estimates from Norwegian land-based experimental plants

• CC: US$4000/kW

• Average incident wave power of 35 kW/m at shoreline and relatively high capacity factor of 60%

36

TECHNOLOGY COE N (years)/I (%) CF (%) Land-Based Wave Power 11.1 15/10 60

9.2 30/10 “ 8.4 15/5 “ 6.1 30/5 “

H2 : Fiji Perspective

• Available from hydrocarbons and water

• H2 is energy carrier not energy source

• Energy transport by electrons much more efficient that H2 energy transport

• Future viability as energy storage alternative to batteries (village power)?

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H2 from hydrocarbons

39

40

H2 from Water

41

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Hydrogen from Electrolysis

• 75% of Electrical Energy lost through Electrolyzer/Fuel Cell

• Would need 4 WTGs to meet electrical load instead of 1 WTG

• Energy Storage (electrical chemical electrical)

Lead Acid Battery 75%Electrolyzer/Fuel Cell 25%

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Fuel Cells Conclusions

• What is your source of H2?

• Why use fossil-fuel to produce H2 to generate electricity?

• Why use electricity to generate H2 (electrolysis) to produce electricity?

44

FEA Future• Develop Wind-Farms, Hydroelectric,

Biomass or Geothermal Systems if appropriate resource available

• PV Cost must decrease by > 50% before grid-connected systems are cost competitive

• OTEC and Wave Power systems are promising

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FEA Challenge: Conservation and Renewables

• Demand side management conservation measures (FEA and FDoE)

• FEA in process of identifying a site for a 10 MW Wind Farm (grid-connected)

• Resolution of Hydroelectric-Dam Land Issues

46

Distributed Generation & Energy Storage Future

c/o FDoE (with PICHTR as advisor)

• Implementation of 1000’s of stand alone SHSs and 100’s PV-Hybrids for non-FEA areas

47

FDoE Funding Challenge

US$ 17 Million required for the installation of 12,000 SHSs:

where can the Fijian Government obtain this amount and in the form of concessionary loans with terms that result in monthly service fees of about F$20 (~ US$10)?

48

Renewable-Energy-Based-Rural-Electrification (RERE)

• Locations where FEA grid extension not cost effective– Remote villages using benzene

lamps, dry-cell batteries ($5 to $20/month) … [PV Lights?]

– Provincial centers with genset mini-grid (COE > 0.5 $/kWh)…[ Hybrids?]

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FDoE RERE Goals

• Implement Commercially Viable Energy Services for Sustainable Development

• Commercial viability service is provided for a fee that covers all life-cycle costs; and, fee is collectable

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Demonstration Projects with PICHTR

• Nabouwalu (Fiji) 720 kWh/day Wind/PV Hybrid Power System

• Vanua Levu(Fiji) 250 Solar Home Systems

• Technical Training: Energy Specialists; PV and Wind Technicians

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Nabouwalu Hybrid System

• 720 kWh/day Wind/PV Hybrid System at Provincial Center (24/7)

– 60% from renewable energy (1998) down to 15% by 2002 (human infrastructure issue)

– Tariff ~ 1/5 C.O.E. disregards RE Policy

52

40 kW PV

1 of 8 WTGs

Transformer

Power House

Nabouwalu, Fiji

53

Step-up Transformer

Gensets

BatteryControl

s

PV

Nabouwalu, Fiji

54

Nabouwalu Post Office: Pre-payment Cards

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Solar Home Systems (SHSs)

• Entry level in Fiji:– 200 Wh/day (evening hours):

100 Wp of PV panels 100 Ah, 12 V deep cycle battery

charge controllerpre-payment meter

Vunivau, Fiji Rice Farmers

Nabouwalu, 1-hr Labasa, 2-hrs

Vunivau, Fiji

Renewable Energy Service Companies for Solar Home

Systems

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SHS Conclusions

• Actual field experience operating 250 SHSs in Vanua Levu were used to establish requirements {systems are maintained by a private company operating as a RESCO under contract to determine the true cost of system operation as well as appropriate staffing requirements}

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SHS Conclusions (continuation)

• SHS Commercial viability service provided for a fee that covers all life-cycle costs associated with providing that service and fee is collectable

61

SHS Conclusions: Financial Feasibility

Financing of SHSs feasible at least under two scenarios:

(1)Concessionary loan (e.g., Government of Japan) with tariff covering all costs

(2)Fiji Government: 90% capital subsidy; balance through commercial loan and recurring cost covered by tariff

{2nd scenario allows about 300 installations yearly but 12,000 potential users}

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Village Surveys

• 38% of the households F$20/month in fuels used for lights and dry cell batteries for radios

• Extrapolation to all Rural-Electrification applicants indicates that 4500 households could afford F$20/month. And 7500 more could use SHS for lower fee

________ F$20 = US$10

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Monthly Expenditures ($F): Kerosene and Benzine for Lights and Radio Batteries

[432 Households in 47 Villages (Viti Levu and Vanua Levu)]

0%1%2%3%4%5%6%7%8%9%

10%11%12%13%14%15%16%17%18%19%20%

3.7 7.5 12.5 17.3 22.1 27.4 32.0 37.1 42.3 46.5 52.6 57.7 62.9 69.0

Average Expenditures in $5 Range Increments

% O

ccur

renc

e

Average: $F 18.6 Maximum: $F 69.6 Minimum: $F 1.2 38% Expenditures > $F 20

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Funding Challenge

US$ 17 Million required for the installation of 12,000 SHSs:

where can the Fijian Government obtain this amount and in the form of concessionary loans with terms that result in monthly service fees of about F$20 (~ US$10)?

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APEC Economies: Opportunities

• Minimal rural infrastructure in Fiji opportunities for new renewable/storage energy technologies

• Fiji Department of Energy and PICHTR provide a working partnership