solar-diesel hybrid system to stabilize solar power...

MOEJ/GEC JCM Feasibility Study (FS) 2013

Final Report

「Solar-Diesel hybrid system to stabilize solar power generation」

（implemented by Mizuho Bank, Ltd.）

Study partners Hitachi Zosen Corporation

PT PLN (Persero)

Mogok Image Construction

Project site Myanmar (Mogok City) and Indonesia (Nias Island)

Category of project Renewable Energy and Energy Efficiency

Description of project

JCM

methodology

Eligibility

criteria

1 Type of the project 1-1 Components of the system

1-2Destination of the power

supply

2 Technological

criteria to maximize

the potential of solar

energy

2-1 Temperature coefficient of

PV panel

2-2 Operation load of diesel

engine

2-3 Usage of battery

3 Technological

criteria to provide

high-quality base

load power

3-1 Functions of hybrid

system controller

4 Maintenance

criteria to secure

the performance

within the

endurance period

4-1 Maintenance contract

Default values - CO2 emissions factor of electricity in year y [tCO2/MWh]

- Net Calorific Value of the diesel oil used for diesel engine [GJ/t]

- Emission Factor of the diesel oil used for diesel engine [tCO2/GJ]

- Net Calorific Value of fossil fuel i [GJ/mass or volume unit]

- Emission Factors of the fossil fuels used for power stations connected grid in year y [tCO2/GJ]

Calculation of CO2 emissions are calculated as a result of combustion

reference

emissions

of fossil fuels in power stations connected to the grid

along with the reference scenario.

Monitoring

method

Quantity of electricity generation fed to the grid by the

project (MWh/y) : monthly

Quantity of diesel fuel consumption by the project:

monthly (t/y) : monthly

GHG emission reductions Calculation of reference emission: by measuring of

combustion of fossil fuels in power stations connected to

the grid along with the reference scenario (multiplied by

the emission factor (default value or national grid).

Calculation of project emission: by measuring of

combustion of diesel oil in the diesel engine that is a

component of the hybrid system and total generation of

electricity by the component of the hybrid system.

Estimated emission reductions:

[Indonesia] 2,112 tCO2/y

[Myanmar] 3,502 tCO2/y

Environmental impacts No environmental impacts.

Project plan [Indonesia]

In the proposed project, we plan to install a “PV/Diesel

Engine Hybrid System” that has capacity of 1 MW (PV)

and 1.5 MW (Diesel Engine). It will replace an

island-grid-connected power in the Nias Island, which

will be generated by diesel engines. Initial cost is

planned to be invested by PLN in 50% and Japanese

grant 50%.

[Myanmar]

In the proposed project, we plan to install a “PV/Diesel

Engine Hybrid System” that has capacity of 2 MW (PV)

and 4.5 MW (1.5 x 3 Diesel Engines). It will replace a

micro-grid-connected power of the Mogok City, which

will be generated by diesel engines, additionally. Initial

cost is planned to be invested by MIC in 25%,

SSG/PWH in 25% and Japanese grant 50%.

Promotion of Japanese

technologies

Solar-Diesel Hybrid system is Japanese own technology

that can stabilize solar power generation output.

Sustainable development in

host country

Installment of this hybrid system can cause the reduction

of fuel consumption by solar electricity generation and

improvement of new diesel engine’s fuel efficiency, this

could contribute for the sustainable development in the

host countries.

JCM Feasibility Study (FS) 2013 – Final Report

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JCM Feasibility Study (FS) 2013

“Introduce Hybrid System to Stabilize PV Power Generation in Myanmar and

Indonesia”

(Host country: Myanmar and Indonesia)

Study Entity: Mizuho Bank, Ltd.

1．Study Implementation Scheme

By introducing the “PV/Diesel Engine Hybrid System” to the isolated island grid area in Indonesia

and isolated micro grid area in Myanmar, we target the reduction of CO2 emissions in those

countries.

The “PV/Diesel Engine Hybrid System” is a system that combines solar power generation and

diesel engine power generation. Although the solar power system can reduce CO2 emissions

drastically, its power generation fluctuates in proportion to solar irradiation. On the other hand,

diesel engine power generation has the advantage of continuous power output. By combining a

diesel engine with solar power, utilizing IT technology (software) and inverter, the power output

can be levelized and stabilized with minimum usage of expensive batteries.

2．Overview of Proposed JCM Project

(1) Description of Project Contents:

[Indonesia]

In the proposed project, we plan to install a “PV/Diesel Engine Hybrid System” that has 1MW

capacity PV and 1.5 MW capacity diesel in Nias Island, Indonesia. It will replace the

island-grid-connected power in the Nias Island, which will be generated by diesel engines. The

annual CO2 reduction will be approx. 2.1 kt-CO2.

[Myanmar]

In the proposed project, we plan to install a “PV/Diesel Engine Hybrid System” that has 2MW

capacity PV and 4.5 MW capacity diesel (Final target is 20MW) in Mogok City, Mandalay

Region. It will replace the micro-grid-connected power (almost the same with off-grid supplied

directly to the customers), which will be generated mainly by diesel engines in the future. The

annual CO2 reduction will be approx. 3.5 kt-CO2.

(2) Situations of Host Country:

Stabilized electricity is indispensable for the small-scale grid and off-grid, because fluctuation of

electricity supply effects them significantly, which means that the system is suitable both for the

remoted area (Myanmar) and many islands (Indonesia).

In both countries, electricity supply system that does not depend on the large-scale grid is

anticipated.


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Targets for the hybrid system

By the “standardization” of applying the hybrid system in remote areas or medium-small islands,

both countries can avoid the introduction of inefficient systems regarding CO2 and energy, which

will contribute to the “Leapfrog” development. That is, BAT (best available technology) transfer,

development of electricity supply system that does not depend on the large national grids, reduction

of energy consumption and reduction of CO2 emissions can be achieved for the sustainable

development.

Two types of grid eligible in the methodology

3. Study Contents

(1) JCM methodology development

a. Eligibility criteria

1-1 Type of the

project

Components

of the system

Hybrid system is to be composed both with (1) solar

power generating system and (2) diesel engine power

generating system.

1-2 Destination Generated electricity is to be supplied either to

Large-scale grid

Small amount of

renewables

Large amount of

renewables

Small-scale grid

or Off-grid

Myanmar

Indonesia

Limited central

area

Large islands Many medium-small islands

Remoted area where Electricity

Supply is not enough

Suitable for the Hybrid System

Power

Generator

Sea

National

Electricity Grid

Isolated Grid of

Remote Island

Remote Island

Isolated Grid of Remote Island Micro Grid of Remote Area

Power

Generator

National

Electricity

Grid

Micro Grid of

Remote Area (1)

Micro Grid of

Remote Area (2)

Supply


<3>

of the

power

supply

(1) isolated grid of remote island or (2) micro

grid of remote area.

2-1 Technologica

l criteria to

maximize

the potential

of solar

energy

Temperature

coefficient of

PV panel

PV panel used in the hybrid system is suitable for

the usage in tropical region, which has the

temperature coefficient less than or equal to 0.35 % /

degree.

2-2 Operation

load of

diesel

engine

Low-load continuous operation is possible by the

diesel engine used in the hybrid system, without

any restriction against continuous operation.

2-3 Usage of

battery

Battery for stabilizing the power output of the

hybrid system is not used, or;

Battery for stabilizing the power output of the

hybrid system has the C-rate more than or equal to

60 and estimated lifetime of more than or equal to 10

years.

3-1 Technologica

l criteria to

provide

high-quality

base load

power

Functions

of hybrid

system

controller

For the purpose of generating stabilized electricity, a

hybrid system controller has all of the following

functions:

- Calculating the required electricity to be generated

by diesel engine;

- Calculating the required flow rate of diesel oil

charged into diesel engine;

- Maintaining aperture of fuel control valve for

supplying required flow rate of diesel oil.

4-1 Maintenanc

e criteria to

secure the

performanc

e within the

endurance

period

Maintenanc

e contract

Manufacturer or vender of the hybrid system

makes maintenance contract with user, which

includes responses to malfunction and parts

supply during useful time designated by the law

in the host country.

b. Data and parameters fixed ex ante

Parameter Description of data Source

EFy CO2 emissions factor of electricity

in year y [tCO2/MWh]

(1-a) and (1-b):

CDM-EB “Approved small-scale CDM

methodology AMS-I.D.” (up to ver.15)

(2-a), (2-b) and (2-c):


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Parameter Description of data Source

CDM-EB “Guidelines on the

consideration of suppressed demand in

CDM methodologies” (version 02.0)

NCVDO,y Net Calorific Value of the diesel

oil used for diesel engine [GJ/t]

IPCC “2006 IPCC Guidelines for

National Greenhouse Gas Inventories

Volume 2 Energy”

EFDO,y Emission Factor of the diesel oil

used for diesel engine [tCO2/GJ]



Volume 2 Energy”

NCVi,y Net Calorific Value of fossil fuel i

[GJ/mass or volume unit]



Volume 2 Energy”

EFCO2,i,y Emission Factors of the fossil

fuels used for power stations

connected grid in year y

[tCO2/GJ]



Volume 2 Energy”

c. Calculation of GHG emissions (including reference and project emissions)

Grid emission factor is to be decided as follows:

(1) Isolated grid of remote island (Indonesia)

Figure 1 Decision Flowchart of Emission Factor for Isolated Grid of Remote Island

(1-a) All power plants/units are using liquid fuels (fuel oil or diesel oil):

The project developer can calculate CO2 emissions factor (EF) in year y for the

connected grid by using constant emission factors for displaced power stations [default

value: 0.8 tCO2/MWh].

(1-b) Any power plants/units are using fossil fuels except for liquid fuels:

The project developer can calculate CO2 emissions factor (EF) in year y for the

connected grid by calculating the weighted average emission factor of the current

generation mix.

(2) Micro grid of remote area (Myanmar)

Types of fuels used in the power

generators connected to the isolated

grid of remote island

(a) Default value (0.80)

(b) Weighted average emission factor

of the current generation mix.

Only liquid fuels

Includes

non-liquid fuels


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Figure 2 Decision Flowchart of Emission Factor for Micro Grid of Remote Area

(2-a) All of additional demand of the micro grid of remote area is planned to be supplied by the

National electricity grid:

The project developer can calculate Combined Margin (CM) as CO2 emissions factor

(EF) in year y for the National electricity grid by using “Tool to calculate the emission

factor for an electricity system” of CDM.

(2-b) Part of additional demand of the micro grid of remote area is planned to be supplied by the

National electricity grid:

The project developer can calculate CO2 emissions factor (EF) in year y by calculating

the weighted average emission factor of (a) and (c).

(2-c) None of additional demand of the micro grid of remote area is planned to be supplied by

the National electricity grid:

The project developer can calculate CO2 emissions factor (EF) by the power generation

mix planned in the future (plausible and feasible in the short term), which is regarded

as policies and measures to satisfy the suppressed demand.

Reference emissions is calculated as follows:

REy = EGPJ,y * EFy

Where:

REy Reference CO2 emissions in year y [tCO2/y]

EGPJ,y Quantity of net electricity generation using the hybrid system that is produced and fed

to the isolated grid of remote island or to the micro grid of remote area as a result of

the implementation of the project activity in year y [MWh/y]

EFy CO2 emissions factor of electricity in year y [tCO2/MWh]

In case of (1-b) or (2-c):

EFy =

y

i

yi,CO2,yi,yi,

EG

EFNCVFC

Isolated grid of remote area

is connected to the National

electricity grid

Plan of future additional

electricity supply from the

National electricity grid to

isolated grid of remote area

(a) Emission factor of the

National electricity grid

(c) Emission factor of the

power generation mix

planned in the future

(b) Weighted average

emission factor of (a) and (c)

Y

N

Y (all demand)

Y (part of demand)

N


<6>

Where:

EF y CO2 emissions factor of electricity in year y [tCO2/MWh]

FCi,y Quantity of consumed fossil fuel in year y [mass or volume unit]

(1-b) Any power plants/units are using fossil fuels except for liquid fuels (isolated grid of remote

island):

Fossil fuel consumptions in all power generators connected to the isolated grid of

remote island

(2-c) None of additional demand of the micro grid of remote area is planned to be supplied by the

National electricity grid (micro grid of remote area):

Fossil fuel consumptions for generating additional power supplied to the micro grid of

remote area

NCVi,y Net Calorific Value of fossil fuel i [GJ/mass or volume unit]

EFCO2,i,y Emission Factor of fossil fuel i [tCO2/GJ]

EGy Quantity of net electricity generation that is produced and fed to the grid of remote

island/area in year y [MWh/y]

Project emissions is calculated as follows:

PEy = PDOy * NCVDO,y * EFDO, y

Where:

PEy Project CO2 emissions in year y [tCO2/y]

PDOy Quantity of consumed diesel oil for diesel engine in year y [t/y]

(Note: bio-diesel is not incorporated)

NCVDO,y Net Calorific Value of the diesel oil used for diesel engine [GJ/t]

EFDO,y Emission Factor of the diesel oil used for diesel engine [tCO2/GJ]

Emissions reductions is calculated as follows:

ERy = REy – PEy

Where:

ERy CO2 reduction in year y [tCO2/y]

REy Reference CO2 emissions in year y [tCO2/y]

PEy Project CO2 emissions in year y [tCO2/y]

So as to confirm the contribution by (1) solar power generating system and (2) diesel engine

power generating system, emission reductions each by (1) and (2) are calculated as follows:

ERy, 1 = EGPJ,y × EFy

Where:

ERy, 1 CO2 reduction in year y (by solar power generating system) [tCO2/y]

EGPJ,y, 1 Quantity of net electricity generation using the hybrid system that is produced and

fed to the isolated grid of remote island or to the micro grid of remote area as a

result of the implementation of the project activity in year y (by solar power

generating system) [MWh/y]


<7>

EFy CO2 emissions factor of electricity in year y [tCO2/MWh]

(the same with reference scenario)

ERy, 2 = ERy – ERy, 1

Where:

ERy, 2 CO2 reduction in year y (by diesel engine power generating system) [tCO2/y]

ERy CO2 reduction in year y [tCO2/y]

ERy, 1 CO2 reduction in year y (by solar power generating system) [tCO2/y]

Therefore, CO2 emissions factor of electricity in year y for the power generation using diesel

engine under the project (EFy, 2) can be compared with that under the reference scenario (EFy):

EFy, 2 = PDOy ÷ 0.86 [t/kL] ÷ EGDJ,y[MWh]× 2.71 [t-CO2/kL]

Where:

EFy, 2 CO2 emissions factor of electricity in year y (by diesel engine power generating

system) [tCO2/MWh]

PDOy : Quantity of consumed diesel oil for diesel engine in year y [t/y]

EGPJ,y, 2 Quantity of net electricity generation using the hybrid system that is produced and

fed to the isolated grid of remote island or to the micro grid of remote area as a

result of the implementation of the project activity in year y (by diesel engine power

generating system) [MWh/y]

Emissions Reductions

(1) solar power generating system; (2) diesel engine power generating system

(2) Development of JCM Project Design Document (PDD)

Development of JCM PDD for Indonesia and Myanmar projects are developed by Mizuho Bank.

(3) Project development and implementation

a. Project planning

Die

sel E

ng

ine

Project Reference Project

PV

Reference

CO2

Emissions

(2)

(1)

Generated

Electricity


<8>

Project planning is made by Hitachi Zosen Corporation through the hearing of PLN (Indonesia) and

Mogok Image Construction (Myanmar).

b. MRV structure

Counterpart in the host countries (Indonesia: PLN, Myanmar: Mogok Image Construction) are

planned to operate the installed hybrid system and also take roll of monitoring.

Emissions sources of the reference scenario are

- Diesel engine generators connected to the island-grid of the Nias Island

Emission sources of the project activity are:

- Diesel engine generators as the component of the hybrid system

Monitoring points are:

- Quantity of consumed diesel oil for diesel engine

- Quantity of net electricity generation using the hybrid system that is produced and fed to the

grid (A)

- Quantity of electricity generation using the PV system (B, D and E)

- Quantity of electricity generation using the diesel engine (C)

Quantity of electricity in the point of A, B, C, D and E are monitored continuously using the system

SCADA (Supervisory Control And Data Acquisition).

c. Permission and authorization for the project implementation

[Indonesia]

Since PLN will be the project operating entity, obtaining of electricity producer license, conclusion

of PPA or other such permissions are not required.

[Myanmar]

Mogok Image Construction, the project operating entity in Myanmar, had obtaining the right to

promote the contribution business in the Mogok area by conclusion of contract with National

Electricity Council.


<9>

d. Japan’s contribution

- The Japanese side provides the technology of the hybrid system and its related facilities (PV

panel and operating software).

- Concerning electricity generation on isolated islands, both the amount of diesel fuel can be

reduced and solar power can be introduced as much as possible.

- Currently voltage and frequency are already unstable, making the integration of solar into the

island grid challenging. By combining a diesel engine, short-term storage and solar power in a

power plant, utilizing an inverter and a hybrid system controller, the total power output can be

stabilized and supplied to the island grid.

e. Environmental integrity

[Indonesia]

Since its reference scenario is based on electricity generation by combustion of fossil fuel (diesel oil

or coal), installment of this hybrid system can cause the reduction of fuel consumption by solar

electricity generation and improvement of new diesel engine’s fuel efficiency without

environmental impacts.

[Myanmar]

Under suppressed demand, assumed additional electricity generators in the project area are diesel

system. Installment of this hybrid system can cause the reduction of fuel consumption by solar

electricity generation.

f. Sustainable development in host country

This technology can contribute to the sustainable development in the host countries in the fields as

below;

- Enhancement of supply capacity of electricity;

Both Nias Island in Indonesia and Mogok City in Myanmar, the project sites are low electrified

area currently so this project will contribute to enhancement of electrification with high

efficiency in those countries.

- Promotion of other industries;

Mining of gemstone is the main industry of Mogok City in Myanmar and this enhancement of

electricity supply capacity will increase the capacity of primary processing such as cutting.

- Employment creation;

By the constructions and operation of generation equipment, economic benefit will be

g. Toward project realisation (planned schedule and possible obstacles to be overcome)

(1)Planned schedule

Both in Indonesia and Myanmar, Japan side is contacting with the counterparts in the host country

under the planned schedule as below.


<10>

July 2013- April 2014 JCM feasibility study 2013, Ministry of Environment of

Japan

June 2014 - Apply to JCM subsidiary program 2014, Ministry of

Environment of Japan

September 2014 Commencement of construction

April 2016 Commencement of commercial operation

(2)Possible obstacles to be overcome

[Myanmar]

If sales price of electricity is low as current tariff level in this project area, this project cannot be

economically feasible. According to the host company, they could decide the sales price, it’s

probability had to be confirmed.

[Indonesia]

Since PLN’s company decision for implementation is not made yet, we are making continuous

negotiation with PLN to participate in this project with DNPI’s support.

solar-diesel hybrid system to stabilize solar power...

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