Mini Grids in AsiaSameer Kalra

Sept 30th, 2010

Mini Grid

Definition

“An integrated energy system consisting of interconnected loads and distributed energy resources (including generators, energy storage devices, and smart controls) that can operate with the utility grid or in an intentional islanding mode.”

World Electrification Facts

Source: Alliance for Rural Electrification

Developing world remains largely un-electrified.

Why Mini Grids?• 1.6 billion people across the developing world remain

without electricity – Investment requirements $9.6 trillion in the period 2001 to 2030

• India and China are huge countries with diverse terrains– average cost of grid extension per km between $8,000 and

$10,000, rising to around $22,000 in difficult terrains

• China builds 1 coal power plant per week• India struggling to bridge gap between supply and

demand• Huge electricity cuts in developing counties, to meet

peak demand

Businesses building Mini Grids to ensure continuous electricity

Technology Choices1. Diesel

• Pollution – noise / air• Non- Renewable – Unsustainable in the long run• High OPEX; transportation challenges

2. Solar• Most common in Asia – sun is in abundance• High CAPEX; ROI is longer• Storage issues

3. Wind/Hydro• Not suitable for all terrains• Transmission between point of generation and consumption• Storage issues

Hybrid Mini Grids are optimal

Technology Decision Tree

Source: World Bank

Choose the right technology based on ground conditions

Critical Factors for Project Success

• Technology choice

• Sustainability

• Financing

• Affordability

• Community Involvement

• Regulatory impact• Environmental

considerations• Opportunities to

initiate and enhance productive activities and applications

Case Study 1 – Scatec SolarSolar PV based Mini Grid in 150 households in India

Main challenges• Develop sustainable and scalable

business models (with focus on local revenue models)

• Develop an effective, global incentive mechanism to facilitate and accelerate a large-scale roll-out of CSPPs

Learnings

• Govt and community support is essential

• Empowerment and education of local population

Project financing

• Public private model

• CAPEX by Scatec Solar

• Tariffs based on the price of kerosene and diesel.

• Revenue model = OPEX + renewable components

Project Outcome

• Round the clock electricity

• Enhance economic activity and productivity

Case Study 2 – SMA Solaroff-grid power supply for 190 villages

Challenge: • Chinese government program to

provide rural areas with decentralized power supply systems, mainly PV

Renewable Opportunity

• Installation of 190 village electrification systems with diesel generator as backup

Financing

• German Bank of Reconstruction and the Chinese Ministry of Finance

Outcome

• Modularity of the system allows easy system adjustment to the demands of the energy supplier or the end-users

• System integrators like SolarWorld and Schott Solar are adept at connecting these new technologies successfully.

Case Study 3 - SolarWorld AG PV-based renewable energy to 7000 homes in China

Challenge

• Rural Electrification

Renewable Opportunity

• Good irradiation condition for Solar PV

Solution

• Multi-crystalline solar PV

• Backup diesel generator to reduce battery size

Financing

• German Bank of Reconstruction and the Chinese Ministry of Finance

Outcome

• 142 villages with 30,000 people were electrified

Case Study 4 – Urban Township in India Townships/Building/Malls

Challenge• Intermittent supply of electricity

at peak load

Opportunity• Supply: storage and distributed

generation (renewable and non-renewable sources)

• Demand: consumption devices including lighting, HVAC, and IT equipment

• Energy management platform: to optimize energy supply and demand

• Environmental factors: such as weather, pricing, and comfort

Financing

• Builders such as Reliance, Nano City promoters

Outcome

• Developments in planning stages

Entrepreneurial Opportunities

• Technology Transfer• Energy Storage• Smart Grids• Renewable

Integration• System integration,

project management• Energy Efficiency

• Carbon Management• Building Management• SCADA• Metering Services• S/W for technology

optimization

More opportunities exist in townships/MDUs rather than in rural electrification

Challenges

• Scalable and repeatable business models– No cookie cutter models

• Land acquisition for solar installations

• Cost/kWh for diesel still cheaper than renewable alternatives – Focus on CAPEX versus OPEX

• Country-specific utility permitting requirements

Questions?