Renewable Energy for Kosrae Presentation to the Board of KUA

PV grid penetration in public gridKosrae Utility Authority

APAC ADB meeting Manilla

Fred Skilling - CEOJune 2011

Kosrae Key Energy StatisticsKUA key statistics (2009 / 2010)Country Population8,300Total Utility Customers1,903Total Utility Staff23Electricity Access %95System Peak Demand MW1.120 (currently increase)Total Line Loss %15.19Annual Generation MWh6,188,752Annual Sales MWh5,248,361Annual Fuel Consumption (million litres)436,800 Gals or 1,653,463 LitersCurrent Fuel Price US$ per litre$ 4.6356 / Gal. or 1.219 / LAv Residential Elec Tariff >100kWh in US$0.38Av Revenue per kWh sold US$0.43Operating Cost to Customer US$1,526Staff to Customer Ratio0.012 (1 to 83 customers)Fuel Efficiency kWh per liter14.26 kWh/Gal (generation)12.07(to customer)Generation Plant Availability %94System Load Factor88.06

Current situation in KosraeEnergy Action Plans of Kosrae StateAIM : become less dependent on imported fossil fuelsProvide affordable and stable electricity to all Kosrae households and business

BY:Introducing more RE sourcesImproving the grid-efficiency

Energy Action Plans RE section

Total Capacity that KUA want to install is 400 kWh / 2009 action plans mentioned a gradually approach but can be speed-up after evaluating existing installations.

under EDF-9 -> 56 kWp installed and results very satisfying.

Phase 1: PV grid connected plant at KUA, ground mounted 200 kWp.Phase 2: 100 kWp at government buildings and upgrade of KUAs plant with another 100 kWp

Ongoing1.5 MW Wave energy power plantIPP structure under a PPA with KUAEstimated purchase kWh rate: 0.10 - 0.15 USD / kWhGeneration cost: 0.02 USD / kWhOperation of wave power plant: end 2011

Kosraes Approach2 high priority projects on action plan:1st Grid connected solar2nd wave energy

KUA has started preparing both projectsin the meanwhile looking for other solutions for other technologiesKUA has started planning for IPPs (Solar-Wind Hybrid etc)Work parallel on all these projects

Funding for the additional 400 kWp PV Rough price estimate: US$ 2,400,000 ($6,000/kWp)Project implementation in two phases:150 kWp with EU EDF-10 funding (= $900,000)250 kWp with either use of the Japan PEC fund or a combination of a grant and a loan as matching grant.KUA is also stimulating private investors to start an IPP (Independent Power Producer) under a PPA (Power Purchase Agreement) arrangementInterest in this is showed by two PV companies

Kosraes picture for 2012Why KUAs interest in Renewable Energy ?Before 2008 => 100% dependent on dieselIn 2008 => installed 52.5 kWp PV grid connected solar on 5 different locations: 1 car park shading and 4 rooftop installationsResults for utility very satisfactoryWave Energy: generating cost very low => IPPBecoming less dependent on expensive imported fossil fuels!Provide electricity to KUAs customers' for an affordable rate

Why Grid connected PV?The sun is the best-measured renewable energy resource in the pacific countriesCrystalline PV modules have a proven track record in the pacificAmorphous panels are being introduced as test in Kosrae in 2008 (1 kWp)Suited for Pacific context of limited land availability: no additional land required if the PV arrays are on roofsScalable technologyLow maintenance, as there are no batteries

PV prices are coming down! In 2008

World pricesNiue: 6.76 /WpKosrae: 8.17 /Wp

Grid connected PV in KosraeThe previous table showed prices in EuroToday the price of grid connected PV solar (installed) is between USD 4.50 / Wp and USD 6.75 / Wp installed in the Pacific. This means that from 8 euro (= USD 11.25) the price went down to USD 5.50 or more than 40% !

Current trendCurrently, projects in the Pacific can expect:

PV modules: 3.00 4.00 US$/Wp

Inverters: 0.50 US$/W

Installed systems: 5.50 US$/Wp

And these prices are going down

PV Grid connected systems in KosraeCountry/stateSystem sizesTotal capacityInstallation dateKosrae6 systems1 16.4 kWp53.5 kWpSeptember 2008

System OverviewCrystalline modules chosen for their proven track recordOne small system with Amorphous modules (1kW) Extended warranties purchased on all invertersTotal of 6 systems: 5 are roof-mounted and 1 is on car park shadingData loggers installed on all systems

Price per kWh(current rate in Kosrae: 39 US/kWh SystemCost of generation (incl. initial capital cost)Cost of generation(excl. initial capital cost)Current Systems:45 US/kWh3.4 US/kWhUsing Current price of PV 18 US/kWhYes indeed installing Grid Connected PV is a financially attractive alternative!

Current Systems52.5 kWp installed on roofs of airport, legislature, hospital, governors office, and KUA car park1 kWp installed on the recycling plantInstalled in September 2008Average production 5,800 kWh/mo.

Specific yield: 1,340 kWh/kWp/yr

Energy Assessment

Issues Raised1- Supply and Installation of 5 PV Grid-Connected Systems:Faulty Inverter at the Airport installation2- Maintenance of the PV Systems:Issue of the Solar PV Tariff system.3- Monitoring of PV Systems:Monitoring of the 5 PV grid-connected systems.4- Project Impacts:Beneficiaries and Public awareness and perception of the PV systems.

Existing PV Systems Present Status as Monitored

Faulty Inverter at airport installation was replaced in November 2010 - No problems sinceSolar panels are guaranteed for 20 years, Inverters and other electronic equipments are guaranteed for 5 yearsOn line monitoring of the PV grid-connected systems not yet in operation but high on the wish listAll systems are performing well and as utility we are keen to increase the PV penetration to 500 kWp Awareness and information to end-users important

Next slide will give you an overview of the performance of the PV systems

Airport

Airport SystemkWh (Grid)kWh (PV)Total kWh Total $Totalw/o PVSavings kWhRate 06-07 100,500 100,500 $ 19,027 0.19 07-08 42,240 42,240 $ 16,058 0.38 08-09 45,300 10,080 55,380 $ 18,468 $ 22,577 $ 4,109 0.41 09-10 44,520 5,920 50,440 $ 18,911 $ 21,426 $ 2,515 0.42

Airport - Cont.YearSavings for consumer 08/09$ 4,10909/10 $ 2,515

KUAs car-park system

kWh (Grid)kWh (PV)Total kWh Total $$ Total w/o PVSavings Rate 06-07 27,062 27,062 $ 5,112 0.19 07-08 22,210 22,210 $ 4,161 0.19 08-09 21,910 6,993 28,903 $ 8,621 $ 11,372 $ 2,751 0.39 09-10 25,422 4,107 29,529 $10,384 $ 12,061 $ 1,677 0.41 KUA car park system

KUA Cont.YearSavings for consumer 08/09 $ 2,751 09/10 $ 1,677 Governors office

Governors officekWh (Grid)kWh (PV)Total kWh Total $$ Total w/o PVSavings Rate 06-07106,960 106,960 $ 20,772 0.19 07-08 93,760 93,760 $ 18,169 0.19 08-09 76,400 22,680 99,080 $ 32,282 $ 41,864 $ 9,583 0.42 09-10 95,280 13,320 108,600 $ 37,727 $ 43,001 $ 5,274 0.40

Governor's office Cont.yearSavings for consumer 08/09 $ 9,583 09/10 $ 5,274 Hospital

Hospital SystemkWh (Grid)kWh (PV)Total kWh Total $$ Total w/o PVSavings Rate 06-07 71,843 71,843 $ 13,889 0.19 07-08 85,159 85,159 $ 16,499 0.19 08-09 61,192 32,760 93,952 $ 24,280 $ 37,280 $ 13,000 0.40 09-10 84,549 19,240 103,789 $ 33,042 $ 40,561 $ 7,519 0.39

Hospital cont.YearSavings for the Customer08/09 $ 13,000 09/10 $ 7,519 Legislature office

Legislator office systemkWh (Grid)kWh (PV)Total kWh Total $$ Total w/o PVSavingsRate06-07 23,974 23,974 $ 4,507 0.19 07-08 19,947 19,947 $ 3,718 0.19 08-09 9,809 23,310 33,119 $ 3,689 $ 12,455 $ 8,766 0.38 09-10 17,944 13,690 31,634 $ 6,908 $ 12,177 $ 5,269 0.38

Legislature Cont.YearSavings for the Customer08/09 $ 8,76609/10 $ 5,269Generation till end 2010Total (2009 2010) for the 5 buildings2011 1st and 2nd quarterAreakWh (Grid)kWh (PV) Total kWhTotal $$Total w/o PVSavingsLegislature8,7145,78414,1983,7576,2082,451Hospital44,94910,10855,05719,65324,0874,434Airport24,9005,10930,00910,82513,0692,245KUA10,0543,32613,3804,3605,7941,434Governor44,7208,05652,77619,58223,1093,527Total133,33732,383165,42058,17672,26814,092AllkWh (Grid)kWh (Sol)Total kWh133,33732,383165,420Total (1st & 2nd Qtr)80%20%

KUAs and Kosraes futureBetween 2012-2014 57% renewableIn 2015 .

Kosraes picture for 2015PV 20 %Wind 5%Wave 50 %Diesel 25%

In other words: 75% renewable

Concluding note:PV grid connected solar systems is a viable option for Kosrae1st phase additional 400-500 kWp2nd phase 500-750 kWp1.5 MW Wave Power plant in progressKosrae and KUA are actively looking for energy efficiency measurements DSM and SSMKUA interested in SMART-grid

Together we are working on becoming less dependent on the pollutive and expensive fossil fuel

Thank YouKulo Maluhlap