Session 3: Energy Services: Rural Electricity Barriers to and Incentives for Promoting Renewables B2.

. Mini Grid Systems Standards and Regulation Terry Mohn, CEO General Microgrids, Inc Chairman, United Nations Foundation Microgrid Workgroup
terry.mohn@generalmicrogrids.com

Sustainable Energy for All

UN Secretary-General Ban Ki-moon calls on governments, businesses, and civil society to make significant commitments to accomplish three objectives by 2030:

Energy Access Practitioner Network

As part of the Sustainable Energy for All Initiative, the UN Foundation launched a global Energy Access Practitioner Network in July 2011 to help develop a more integrated approach to energy access planning and execution. The Network currently hosts a membership of more than 500 individuals and 350 organizations, constituting a regionally balanced representation from private sector, non-profit, civil society, donor/investor and practitioner partners. The Network seeks to catalyze the broader use of a range of sustainable energy solutions with an emphasis on mini- and offgrid options, using innovative financial and business models in a range of developing country contexts.

Working Group: Micro/Mini Grids Policy

Establish regulations to support development of microgrids that produce less than 40 MW Create robust power purchase agreements that include infrastructure Promote the use of local, clean energy in microgrids maximize natural resources

Working Group: Micro/Mini Grids Technical

Strategically deploy microgrid technologies (Distributed Energy Resources - generation, storage, controls, distribution, building automation) Establish standard approach for physical and cyber interconnections Create capacity for maintenance of the system Integrate resources and future requirements for sustainability design to scale up

Distributed Energy Resources

Generator(s), Distribution, Monitoring, Metering, Demand Control

Improved reliability Maximize natural resources Improved energy use and fuel costs Improved operating efficiency Prioritize loads If standardized, these are commodities competition lowers prices

Benefits

Slow adoption Lack of control systems No history of aggregation success Lack of incentives Few investors Regulatory hurdles Lack of education

Risks

Different than the grid

Consumer engagement with resources to solve power issues locally High penetration of local renewables in residential, commercial, and industrial Not passive but active control in distribution Two-way power flow in distribution Distribution can become a transmission resource Components are part of a cohesive system high dependency on standardization (physical and data)

Villages Become Networked

Small City Microgrid

VREM

Regional Distribution Network

VREM

VREM

VREM

Biofuels Complex

Regional Solar Farm

VREM

Regional Wind Farm

Barriers & Remedies

Challenges
Monopolies may claim unfair competition Financing DER is different than generation Lack of agency education Requires community participation Very small microgrid systems not economically viable Tendency to extend grid

Opportunities
Accelerate electricity access to transmission for small projects (Tanzania) Increase availability of credit from banks e.g. agriculture Develop community ownership models for distribution systems (co-operatives) Regulatory and Energy Ministerials develop microgrid authorization plans Develop incentives for 500kW to 40MW sustainable community projects Enable power flow between communities, monetize it

Next Steps
Enforce physical and data standardization through permitting and/or regulation Pilot sustainable communities that maximize natural resources Network a number of adjacent communities As economic output increases, reduce subsidies Workforce training for locals to operate system Subsidize replacement of diesel for natural resources for distributed resources

Thank you
Terry Mohn

See also, microgrid reports by

International Energy Agency Renewable Energy Technology Deployment Alliance for Rural Electrification Global Village Energy Partnership International