Off Grid Systems : Micro and Mini-grids For Rural and Marginalised Communities

LOGO

ZIMBABWE INTERNATIONAL ENERGY & POWER CONVENTION HICC, Harare, September 27-29, 2011
P R E S E N T E R N A M E : B R I A N M O Y O M U K W E D E YA GENERAL MANAGER PLANNING & DEVELOPMENT
By CONGRETRIX ENERGY, Hartbeespoort South Africa

Agenda and Synopsis of Topic

What Attendees Will HEAR??
Item 1 2

Or Put them to SLEEP

Discussion Item One Definitions

Kick start the Initiated and Uninitiated

Item 2

Discussion Item Two Energy and Electricity

What is the difference if any in the Rural Power Domain & Concept

Item 3

Discussion Item Three Centralised Grid

How Far and How fast Can it Serve the Rural Areas

Item 4

Discussion Item Four Electricity Penetration

Can We Achieve A Sustainable Energy Balance??

Item 5

Discussion Item Five Local Participation

Is this a Viable & Sustainable Option??

Item 6

Discussion Item Six Constraints & Challenges

Agenda and Synopsis of Topic

What Attendees Will HEAR??
Item 7 3

Or Put them to SLEEP

Discussion Item Seven Policy Issues

Policy Changes Necessary Including Regulation

Item 8

Discussion Item Eight Energy and Electricity

Explained by example

Item 9

Discussion Item Nine Roadmap

where Do we Start??

Item 10

Discussion Item Ten Discussion , Strategy & Planning Forums

What steps are necessary to take

Item 11 END

Discussion Item Eleven Conclusion

Is this a Viable & Sustainable Option??

Q&A

Company Background
.
Congretrix Energy.
BEE pioneer developer in the RE & EE space with the following Key Focus areas :
Renewable Energy (RE) Energy Efficiency (EE)

Solar PV photovoltaic power generation in Limpopo (40MW) and Gauteng (2 sites combined 70MW) at advanced stage of development. Future interest in matured CPV technology for new project areas Energy Efficiency Solutions for Commercial & Industrial Buildings Incentivized DSM Solutions where Eskom has shifted to IDM process based on performance Contracting. Congretrix is an ESCo that will largely use EMS tools to achieve better Energy Savings . Based in the North West, Hartbeespoort, South Africa A key player in the hugely fast growing IPP / REFIT multibillion dollar industry. Corporate Membership in Professional Bodies and Associations eg SAEE and Danish Development Reseach Network for Wind Associations

Quick Review

Mini Grid is an Electric Generator and Distribution system that is designed to serve typically small household loads at low voltage and load 60KW. They can be managed at grassroots level.(Micro grid operate at even at lower levels) Centralised Grid is a network of powerful Generators commonly known as power stations that are connected to High voltage power lines over long distances. A system of Substation and Distribution transformers complete the network. Distributed Generator is an Electric Generator less than 500KW output at voltage levels of 600V Renewable Energy None fossil based alternative fuel source from naturally occurring elements such as : Solar (PV / Thermal), Wind, Geothermal,Wave,hydro power, including landfill gas etc that is non depleting and is sustainable.

DEFINITIONS

Comparison of Energy and Electricity

(Without being scientific)
COMPARISEONE OF ITEM ONE
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COMPARISON OF ITEM TWO

ENERGY Term can be used to describe none electrical power used for cooking , heating the environmental space (home) or water. These tasks can also utilise electricity as an Energy source

ELECTRICITY Conversion of Energy into power that can be transported over cables even for very long distances. There are many devices and appliances that can be powered from electricity (and not heat energy)

IS THERE A DIFFERENCE????

Yes

How do we dramatically increase

Generation in Remote
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Marginalised Communities??

We first have to find answers to a few pieces of this puzzle such as : Measure per capita ratios of MW / per population of Rural Areas and Villages Benchmark with Regional and International trends Come up with clear and definitive plans Target areas with productive cash crop agricultural activities with moderate to high income potential Target areas with abundant animal and vegetable Biomass for fuel production

What does a centralised Grid offer??

.
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Generating Elements (Power Stations (Hydro /Thermal) in Zimbabwe Transmission Elements ( Power Line (SHV / HV) / (LV) in Distribution Substation (Transformer Yard, Switchgear, Protection) Distribution Element (Mini Subs, Road Side Transformers)

The above have one common factor which is escalating costs as a result of proportional increase in distances & reduced customer densities.

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Electricity Penetration Linear Model

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Generation + (Hwange,Kaiba) Imports ++++ (Moz, DRC, SA,Zambia) Peaking Generators (Hre, Munyati,Byo Thermals)

Base Load Seasonal Demand Increased Demand through Socio Economic Changes. How feasible are Rural Electrification Plans against this background??

Reserve Margin or Deficit. (Is there room for further expansion to remote areas without additional Decentralised Power???)

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Potential for Local Participation

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Mini & Micro grid generation is a proven concept to enhance quality of life and provide reasonable ROR to investors. The solution is both sustainable and replicable at Village or Community level and scale. Locals can borrow and invest in the business and earn a reasonable return from resell of Electricity to Consumers. External Agencies and Funding Foundations can support a progressive initiative from grassroots level centered on viable economic growth (Mention of MDGs spurs instant action) THE ADDAGE IS THAT RURAL ELECTRIFICATION WILL NO LONGER RELY ON SUPPLY (BY GOVERNMENT) BUT BY SOLVING ENERGY AND DEVELOPMENTAL ISSUES

Constraints and Challenges

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Renewable Energy Technologies (RETs) are still relatively expensive in terms of initial Capital requirements. The Communities require Education in getting off the mindset that biomass is free therefore Energy needs come from the Environment (but of which these resources are not sustainable ) Electricity is used selectively, (focus only on lighting ,TVs, radios etc) this is OK in the Short Term but undesirable in the Long Term. (Electricity Storage Issues in case of PV can arise) if its not Biogas) Absence on Policy for Private Capital to be Invested in this Sector Undocumented Impact on Economic Cost and Quality of Life Cost for the affected Communities including woman and children who collect firewood.

Policy Issues
15

Revisit old plans and criteria for un electrified and poorly supplied Villages, and Growth Points (Initiated by incumbent utility operator ZESA) Revise or amend the Grid Code accordingly to suit Minigrids. Set Energy per capita ratios as targets to be in line with Regional and International trends Identify how electricity production and use can be an important driver to Growth, Development and Improvement to quality of life in rural areas. Address any Regulatory issues that may impact on this Initiative REVISIT HOW PART OF THE RURAL ELECTRIFICATION LEVY AND FUND CAN BE UTILISED FOR THE BENEFIT OF SUCH PROJECTS

ENERGY VS ELECTRICITY
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It cannot be over emphasized why this distinction should be clear to Policy makers, Utilities (Zesa & Municipalities) and Communities concerned. There is need for change of perception and mindset An understanding of what we might term as the Energy Ladder and its impact on electricity usage The Energy Ladder: use of Biomass (firewood, waste) to Paraffin to LPG gas according to how communities utilise their energy needs as income increases

Simple RoadMap
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Stage 1
Generating Policy Transmission Policy IPPs in the Rural Space and applicable tariffs

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Stage 2
National Plans Policy Framework Awareness and Education at Village Level

This roadmap will examine the merits and demerits of why centralized grid electrification is preferred but its lack of impact and challenges encountered in the procurement process The need to formulate various plans some which are key guidelines to addressing Policy issues by Central Government Necessary consultations to ensure project success in these previously disadvantaged areas

Stage 3
Consultations

Stage4
Balanced Scenario , LCOE, Economic Potential of RETs

Discussion Planning and Strategy Forums

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Area1 Detailed discussions & planning

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This chart demonstrates a simple approach in addressing the complex process that will create a

Area 2 Stakeholder Consultation / Steering Committee

conducive platform to see investments in Mini an Micro Grid System attract

Area 3 Resolutions / Community Representation MOUs , Letters of Intent, External Buy In (Funding) Carbon credits

potential Investors and the Communities concerned where the resources can be exploited

CONCLUSION
.
Centralised Grid electricity to remote rural areas is not always the most cost effective and efficient means of Supply

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Local participation of communities is both possible and feasible for them to contribute resources and obtain ownership of the investment. Point 2

In Conclusion, it challenging for Zesa as a utility to provide Power to remote areas considering the losses, expenses involved , management of the procurement process and contactors on site. Decentralised generation will reduce losses and increase availability. Private Funding will also lessen the burden on ZESAs annual Capital Budget. IPPs working in partnership with local communities can operate a viable and essential service with real returns. A company like CE could invest in this opportunity Studies and plans must be in place as a guide to the process

Point 1

Government Buy In to ensure policy shift favorable to private finance including Funding Agencies is critical after full consultation with all key Stakeholders
Point 3

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END THANK YOU

Q&A
brian@congretrixenergy.co.za