Decentralized Power Distribution - ESI-Africa.com · OFF-GRID SMALL-SCALE VERY COMMON >500,000 Pico...
Transcript of Decentralized Power Distribution - ESI-Africa.com · OFF-GRID SMALL-SCALE VERY COMMON >500,000 Pico...
![Page 1: Decentralized Power Distribution - ESI-Africa.com · OFF-GRID SMALL-SCALE VERY COMMON >500,000 Pico systems >250,000 100W PV SHS >10,000 Institutional PV Gen-sets, wind, etc HOUSEHOLD](https://reader033.fdocuments.net/reader033/viewer/2022053011/5f0e46037e708231d43e71d9/html5/thumbnails/1.jpg)
Decentralized Power Distribution The Ideal Role for Renewables in East Africa
Mark Hankins
CEO, African Solar Designs, Ltd
![Page 2: Decentralized Power Distribution - ESI-Africa.com · OFF-GRID SMALL-SCALE VERY COMMON >500,000 Pico systems >250,000 100W PV SHS >10,000 Institutional PV Gen-sets, wind, etc HOUSEHOLD](https://reader033.fdocuments.net/reader033/viewer/2022053011/5f0e46037e708231d43e71d9/html5/thumbnails/2.jpg)
• INTRODUCTION
• ON-GRID DISTRIBUTED RENEWABLES: NOT YET TAKEN SERIOUSLY
• DISTRIBUTED DEMAND IS KEY FOR DEVELOPMENT OF RENEWABLE MARKETS
• LOCAL INDUSTRY IS READY FOR DISTRIBUTED RENEWABLES
• INDUSTRY CAN LEAD THE WAY FOR DISTRIBUTED RENEWABLE POWER
Outline
![Page 3: Decentralized Power Distribution - ESI-Africa.com · OFF-GRID SMALL-SCALE VERY COMMON >500,000 Pico systems >250,000 100W PV SHS >10,000 Institutional PV Gen-sets, wind, etc HOUSEHOLD](https://reader033.fdocuments.net/reader033/viewer/2022053011/5f0e46037e708231d43e71d9/html5/thumbnails/3.jpg)
ON-GRID DISTRIBUTED RENEWABLES NOT YET TAKEN SERIOUSLY
![Page 4: Decentralized Power Distribution - ESI-Africa.com · OFF-GRID SMALL-SCALE VERY COMMON >500,000 Pico systems >250,000 100W PV SHS >10,000 Institutional PV Gen-sets, wind, etc HOUSEHOLD](https://reader033.fdocuments.net/reader033/viewer/2022053011/5f0e46037e708231d43e71d9/html5/thumbnails/4.jpg)
How We Think About Power Investments
Pico/SHS/GMG
Off-Grid
1 W – 100 kW
Governed by Consumers
Household/Commercial Embedded
1 – 50 kW
Governed by Consumers
Industrial Embedded Investments
50 – 500kW On-Grid
Governed by supplier/finance
Smaller Megawatt Investments
0.5 MW – 10MW Power
Project
IPP Contracts, FiT governed
Large Megawatt Investments
>10 MW Power Projects
IPP Contracts, FiT governed
Decentralized Renewables
![Page 5: Decentralized Power Distribution - ESI-Africa.com · OFF-GRID SMALL-SCALE VERY COMMON >500,000 Pico systems >250,000 100W PV SHS >10,000 Institutional PV Gen-sets, wind, etc HOUSEHOLD](https://reader033.fdocuments.net/reader033/viewer/2022053011/5f0e46037e708231d43e71d9/html5/thumbnails/5.jpg)
OFF-GRID SMALL-SCALE
VERY COMMON
>500,000 Pico systems
>250,000 100W PV SHS
>10,000 Institutional PV
Gen-sets, wind, etc
HOUSEHOLD COMMERCIAL
EMBEDDED
Relatively uncommon in
East Africa
BUT
Small battery & gen-set
back-ups are very common!
INDUSTRIAL EMBEDDED
Rare in East Africa
BUT
Gen-set are most common
solution for power back-
ups.
SMALLER MEGAWATT PROJECTS
FIT-based
RWANDA 8.5 MW
UGANDA REFIT PROGRAM
LARGER MEGAWATT PROJECTS
African power sector focus.
* Geothermal
* Hydro
* Natural gas
* Coal
* PV (RSA)
Distributed RE Power Plays a Small Role in East Africa
![Page 6: Decentralized Power Distribution - ESI-Africa.com · OFF-GRID SMALL-SCALE VERY COMMON >500,000 Pico systems >250,000 100W PV SHS >10,000 Institutional PV Gen-sets, wind, etc HOUSEHOLD](https://reader033.fdocuments.net/reader033/viewer/2022053011/5f0e46037e708231d43e71d9/html5/thumbnails/6.jpg)
Small Scale Off-Grid MegaWatt
Projects
Helping Poor People
Generating Returns
A Divergent Market
![Page 7: Decentralized Power Distribution - ESI-Africa.com · OFF-GRID SMALL-SCALE VERY COMMON >500,000 Pico systems >250,000 100W PV SHS >10,000 Institutional PV Gen-sets, wind, etc HOUSEHOLD](https://reader033.fdocuments.net/reader033/viewer/2022053011/5f0e46037e708231d43e71d9/html5/thumbnails/7.jpg)
DISTRIBUTED POWER IS KEY FOR DEVELOPMENT OF RENEWABLE MARKETS
![Page 8: Decentralized Power Distribution - ESI-Africa.com · OFF-GRID SMALL-SCALE VERY COMMON >500,000 Pico systems >250,000 100W PV SHS >10,000 Institutional PV Gen-sets, wind, etc HOUSEHOLD](https://reader033.fdocuments.net/reader033/viewer/2022053011/5f0e46037e708231d43e71d9/html5/thumbnails/8.jpg)
TWO MARKETS WHERE DECENTRALIZED POWER HAS GROWN IN SIZE AND IN IMPORTANCE
USA
US PV Market Focus 2010-2014
GERMANY
29573 MW PV BETWEEN 2000 & 2014
RESIDENTIAL & COMMERCIAL SEGMENT MOST COMMON SIZE 33 kW
LARGE SCALE RE
DISTRIBUTED
10-30 kW
![Page 9: Decentralized Power Distribution - ESI-Africa.com · OFF-GRID SMALL-SCALE VERY COMMON >500,000 Pico systems >250,000 100W PV SHS >10,000 Institutional PV Gen-sets, wind, etc HOUSEHOLD](https://reader033.fdocuments.net/reader033/viewer/2022053011/5f0e46037e708231d43e71d9/html5/thumbnails/9.jpg)
• LONG-TERM AVAILABILITY: Renewables provide consistent sources of power.
• COST: Distributed renewables at point of source are lower cost than EA grid electricity
• CLEAN AND GREEN: Reduce dirty emissions.
• STABILITY: Stable power at site and assist stability of power in local area.
• DIVERSITY: Multiple sources of power are good for the grid.
WHY SHOULD EAST AFRICA BE INTERESTED IN DISTRIBUTED RENEWABLES
![Page 10: Decentralized Power Distribution - ESI-Africa.com · OFF-GRID SMALL-SCALE VERY COMMON >500,000 Pico systems >250,000 100W PV SHS >10,000 Institutional PV Gen-sets, wind, etc HOUSEHOLD](https://reader033.fdocuments.net/reader033/viewer/2022053011/5f0e46037e708231d43e71d9/html5/thumbnails/10.jpg)
LOCAL INDUSTRY IS READY FOR DISTRIBUTED POWER
![Page 11: Decentralized Power Distribution - ESI-Africa.com · OFF-GRID SMALL-SCALE VERY COMMON >500,000 Pico systems >250,000 100W PV SHS >10,000 Institutional PV Gen-sets, wind, etc HOUSEHOLD](https://reader033.fdocuments.net/reader033/viewer/2022053011/5f0e46037e708231d43e71d9/html5/thumbnails/11.jpg)
Grid-Connected Power Solutions for Industry
1. text
DISTRIBUTED RENEWABLES
FINANCIALLY ATTRACTIVE?
Electricity: increasing portion of overall costs
2 year Range: $0.17 to $0.23/kWh Additional 5% for generator fuel costs Electricity prices follow petroleum prices Peak loads often over 200 kW
![Page 12: Decentralized Power Distribution - ESI-Africa.com · OFF-GRID SMALL-SCALE VERY COMMON >500,000 Pico systems >250,000 100W PV SHS >10,000 Institutional PV Gen-sets, wind, etc HOUSEHOLD](https://reader033.fdocuments.net/reader033/viewer/2022053011/5f0e46037e708231d43e71d9/html5/thumbnails/12.jpg)
Industry will take distributed renewables seriously
• Financing increasingly available
• Technologies are maturing
• “Green” is important for marketing
• Embedded power doesn’t need permits
• New business models remove ownership risks
• Energy costs of renewables are predictable, decreasing
• Monitoring & management systems improving
Renewables can complement other power sources • I.e. Tropical Solar --- Biogas + PV
Renewables often match daily industrial loads
![Page 13: Decentralized Power Distribution - ESI-Africa.com · OFF-GRID SMALL-SCALE VERY COMMON >500,000 Pico systems >250,000 100W PV SHS >10,000 Institutional PV Gen-sets, wind, etc HOUSEHOLD](https://reader033.fdocuments.net/reader033/viewer/2022053011/5f0e46037e708231d43e71d9/html5/thumbnails/13.jpg)
What is Holding Back Investment?
• Ignorance
• Lack of local capacity
• Perceived high costs
• Inability to invest up front in technology
• Fear of added complexity & management
• Bureaucracy and lack of policy support Source: Solar Century
![Page 14: Decentralized Power Distribution - ESI-Africa.com · OFF-GRID SMALL-SCALE VERY COMMON >500,000 Pico systems >250,000 100W PV SHS >10,000 Institutional PV Gen-sets, wind, etc HOUSEHOLD](https://reader033.fdocuments.net/reader033/viewer/2022053011/5f0e46037e708231d43e71d9/html5/thumbnails/14.jpg)
INDUSTRY CAN LEAD THE WAY FOR DISTRIBUTED RENEWABLE POWER
![Page 15: Decentralized Power Distribution - ESI-Africa.com · OFF-GRID SMALL-SCALE VERY COMMON >500,000 Pico systems >250,000 100W PV SHS >10,000 Institutional PV Gen-sets, wind, etc HOUSEHOLD](https://reader033.fdocuments.net/reader033/viewer/2022053011/5f0e46037e708231d43e71d9/html5/thumbnails/15.jpg)
Imagining a Distributed Power Future
• Lower energy costs. • Diversified opportunities. Power sector includes small-scale grid
connect as well as mega-watt opportunities • Strong demand. Consumers see distributed power as a high value
solution at all levels. • Finance. Finance available for developments, industry and
commercial demands. • Multiple business models. Lease-to-own, PPA’s, financed
systems, etc. • Expandable. On & off-grid customers can imagine a grid-
connected future with full services. • Policy Support. Distributed power accepted as a viable support to
the grid. Government targets, net metering, embedded power, wheeling & FiTs.