MINI GRID PV BUSINESS OPPORTUNITIES IN KENYA PRESENTED BY: ENG. HENRY GICHUNGI

Transcription

1 MINI GRID PV BUSINESS OPPORTUNITIES IN KENYA PRESENTED BY: ENG. HENRY GICHUNGI

2 Summary Introduction Renewable Energy Plans Diesel Mini Grids Hybrid Mini Grids Conclusion

3 Introduction Kenya Power is a State Corporation with a government shareholding of 50.1% and private shareholding of 49.9% as at June 2012 Currently the only off-taker in the power market Owns most of the transmission and distribution network 30% electrification currently

4 Main Players in Electricity Industry GDC steam resource development ERC IPPs KenGen Imports REA Ministry of Energy KETRACO Transmission /Wholesale Market operator Energy Tribunal KPLC Distribution/Supply Customers

5 Population density and Electricity Grid Coverage

6 Renewable Energy Plans Rural Electrification Master Plan update study (REMP) carried out in 2009 To update the national rural electrification strategy for the period Identified 33 new sites to be established as mini grids Kenya chosen as one of the six Pilot Countries to benefit from Scaling-Up Renewable Energy Program (SREP)

7 Renewable Energy Plans (Cont.) SREP program will support Kenya s initiatives towards achieving a transformational change in RE Investment plan submitted to SREP Subcommittee with three components: Development of 200MW Geothermal Solar Water Heating Hybrid Mini-Grid Systems

8 Renewable Energy Plans (Cont.) New mini grid sites identified by REMP Capacity of mini grid based on population Government has commissioned a study on privatization of existing mini grids Feed-in-Tariff for private RE generation (20 UScents/kWh, min capacity 500kW, duration of standardized PPA 20 years) Bill in parliament to open way for private distributors in mini grids

9 Mini Grids

10 Diesel Mini Grids (Cont.) Currently there are 15 operational mini grids operated by Kenya Power with a total installed capacity of 13.6MW 5 of these have operated for more than 30 years (one has been connected to the grid) 11 have been developed in the last six years 10 more are currently being developed Operational Expenditure for mini-grids funded through cross-subsidy i.e. uniform tariff policy & fuel adjustment cost

11 Diesel Mini Grids

12 Solar Map Solar radiation from 4 to 7 kwh/m 2 /day Highest solar radiation in offgrid areas

13 Hybrid Mini Grids Government decided to introduce renewable energy in mini-grids to reduce operational costs So far, 7 have been made hybrid 2 plants have wind generation with installed capacity of 50kW and 500kW 6 plants have solar generation with installed capacities of 10, 30, 50, 60, 60 and 300kW p Retro-fitting and construction of new hybrid

14 Mini Grid Capacities and Energy Station Installed Capacity Diesel (kw) Installed Capacity Wind (kw) Installed Capacity Solar (kw) Lodwar Wajir Mandera Marsabit Mpeketoni Hola Merti Habaswein Elwak Baragoi

15 Mini Grid Capacities and Energy Station Installed Capacity Diesel (kw) Installed Capacity Wind (kw) Installed Capacity Solar (kw) Mfangano Lokichogio Eldas Takaba Rhamu TOTAL 13,

16 RE investment plan Retrofitting of existing and currently in construction diesel mini grids with a total of 3,7 MW planned (sizes of 100kW to 800kW each) This figure might be adjusted with result of feasibility study

17 Solar-Diesel Hybrid

18 Hybrid Mini Grids (Cont.) Plant Installed capacity (kwp) Capital Cost (USD) Capital Cost per installed capacity (USD/kWp) Implementat ion year Implementat ion Timeline in Months Merti Solar Habaswein Solar Elwak Solar Hola Solar Lodwar Solar Mandera Solar Design: Grid-tie PV with no batteries (incl. 11 kv power line)

19 Hybrid Mini Grids (Cont.) Capital cost met by the government All done through tendering Grid-tie without batteries design used due to limitation of resources, future hybrids to have stabilization systems so as to increase RE penetration Battery storage plan for small mini grids with low growth rate e.g. Mfangano Island

20 Energy Mix for all Mini Grids combined March in kwh Solar (kw) Wind (kw) Thermal Total Off-grid Generation in March 2013

21 Energy Mix per Mini Grid March 2013

22 12.00am 1.00am 2.00am 3.00am 4.00am 5.00am 6.00am 7.00am 8.00am 9.00am 10.00am 11.00am 12.00pm 1.00pm 2.00pm 3.00pm 4.00pm 5.00pm 6.00pm 7.00pm 8.00pm 9.00pm 10.00pm 11.00pm Merti Load Curve in kw Diesel (kw) Solar (kw) Total (kw) Installed Capacities Diesel: 2 x 64kW Solar: 12kW p 5 0

23 00.30am 1.30am 2.30am 3.30am 4.30am 5.30am 6.30am 7.30am 8.30am 9.30am 10.30am 11.30am 12.30pm 1.30pm 2.30pm 3.30pm 4.30pm 5.30pm 6.30pm 7.30pm 8.30pm 9.30pm 10.30pm 11.30pm Lodwar Load Curve in kw Solar Diesel Total Installed Capacities Diesel: 3 x 400kW, 1 x 240kW Solar: 60kW p 0

24 12.00am 1.00am 2.00am 3.00am 4.00am 5.00am 6.00am 7.00am 8.00am 9.00am 10.00am 11.00am 12.00pm 1.00pm 2.00pm 3.00pm 4.00pm 5.00pm 6.00pm 7.00pm 8.00pm 9.00pm 10.00pm 11.00pm 12.00am in kw Mandera Load Curve Solar (kw) Diesel (kw) Total (kw) Installed Capacities Diesel: 4 x 400kW Solar: 300kW p 0

25 Hybrid Mini Grids (Cont.) The solar hybrids done by several local companies but all equipments are imported including SMA inverters in four sites Installer does service during warranty period of twenty four months No major challenges encountered

26 Mini grid implementation proposal Total estimated CAPEX Retrofitting existing and stations under construction - USD 43 million Green-fields (44 stations) - USD million Through Government budgetary support Grant or concessional financing from development partners-commitments and pledges from WB, AFD, SREP, KfW-GIZ, DFID, JICA

27 Future Plans For RE AfD committed Euros 30 million to fund retrofitting of existing mini grids including expansion of existing hybrids Capacity of RE still under discussion so as to maximize RE penetration To be done through tender or Feed-in-Tariff Green fields to be done by both public and private sector WB, GIZ/KfW and DFID have indicated that they will fund the green fields

28 Conclusion Plenty of sunshine all year Plenty of space for installation of solar panels Feed-in-Tariff Government of Kenya is committed to increasing RE in rural areas and increasing access to modern energy Quality lighting for tiny remote villages Low electrification means great demand

29 Q&A THANK YOU