Mini-grid systems on the rise in Tanzania Status of implementation and regulatory framework conditions

Transcription

1 Mini-grid systems on the rise in Tanzania Status of implementation and regulatory framework conditions Workshop Mini-Grid Systems: Reducing risks and costs through the anchor customer business model 19 March 2014 in Berlin, Germany Dr. Chris Greacen Consultant, World Bank Africa Energy Unit (AFTEG)

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8 1. Regulatory framework Streamlined approvals process Sell to retail or the grid 2. Grants Policy drivers Tanzania example REA Connection grants (up to US $500 per new connection for mini-grids) 3 connection grants awarded so far, $2.3 million, for 4665 connections REA Grants for feasibility studies and environmental assessments 28 grants awarded, US $975, Availability of financing Loans from local commercial banks supported by a US $25 million World Bank line of credit 4. Technical assistance To developers, REA, utility, regulator

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10 Key features of Small Power Producer (SPP) regulatory framework Up to 10 MW (export) If selling to TANESCO: Streamlined interconnection agreements Standardized PPAs Standardized tariffs Up until now, based on utility avoided costs. In 2013: $0.107/kWh main grid; $0.301/kWh TANESCO mini-grid 2015?: Technology-specific feed-in tariffs (like German EEG)

11 Key features of Small Power Producer (SPP) regulatory framework (continued) If selling retail: SPP proposes a tariff based on cost of service Can be higher than national uniform tariff No regulatory approval necessary for tariffs to anchor customers > 250 kw Rights for isolated mini-grid operators when the big grid connects to the little grid. Exemption from licensing and retail tariff approval for projects under 100 kw EWURA reserves right to regulate if 15% of customers file complaint

12 Are Cost-Reflective Tariffs Affordable for Rural Customers? $4.000 $3.500 $3.000 $2.500 $2.000 $1.500 $1.000 $500 $0 Kerosene lamp 50,000 hours 7 watt CFL 50,000 $1/kWh

13 Commercially viable mini-grids Primary market by displacing: Kerosene + dry-cell batteries Diesel generation Grid power (fuel oil, gas, hydro, coal)

14 Kerosene + replacement Small PV: <1 kw Kerosene Low power appliances: LED lighting Cell phones Radio / CD skinny grids or microgrids

15 Example: Devergy Clusters of 5-6 households served by an Enbox Each Enbox has watts PV kwh battery All Enboxes connected in 24 volt DC bus Customers prepay via cell phone realtime internet monitoring of Enboxes, meters Several euros/kwh About 5 euros/month

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17 Diesel displacement PV/Diesel or hydro or biomass 10s of kw to MW-scale Grid-quality (or close) distribution system Appliances: Everything from lower level plus Refrigeration Power tools Grain processing

18 Example: Ngombeni Power, Ltd Mafia Island 1 MW steam turbine (Coconut wood) Sells at 11 kv to TANESCO mini-grid at $0.301/kWh. TANESCO diesel generators kept as backup TANESCO manages distribution

19 Diesel displacement Other Tanzania Examples LUMAMA 300 kw hydro Inensus solar/diesel hybrids Synchronicity solar/diesel hybrid with cell-tower anchor Husk Power biomass gasifier

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21 SPPs with mini-grids that also sell to the main grid Typically hydro or biomass > 1 MW Grid-quality distribution system Generally have large industrial anchor customer(s)

22 Example Mwenga hydro (Rift Valley Energy, Ltd) 4 MW hydro Sells to TANESCO Anchor customer tea factory (700 kw) (April 2014?) Currently sells to 800 residential customers, expanding to 4,000 Prepay via cell phone Retail tariffs same as TANESCO

23 SPPs in Operation (tiny.cc/sppstats) Project MW Type of Resource Grid type Status ACRA - LUMAMA 0.3 Hydro New isolated mini-grid In operation / community based TANWAT 2.34 Biomass wood TPC Co- Generation Mwenga Mufindi Tea 17 Biomass -- Bagasse Main Main 4 Hydro Main and own mini-grid In operation. Selling 1 MW (2010) In operation. Contracted to Sell up to 9 MW to TANESCO In operation Ngombeni 1.5 Biomass coconut wood TANESCO minigrid In operation. 23

24 SPPs with signed PPAs (tiny.cc/sppstats) Project Symbion KMRI Tunduru MW export Resource Grid type Expected COD 0.3 Biomass TANESCO isolated July 2014 Symbion KMRI Kigoma St. Agnes Chipole Songea 3.3 Biomass TANESCO isolated 7.5 Hydro TANESCO isolated Dec 2014 Jan 2015 NextGen Solawazi 2.0 PV TANESCO isolated Jan 2015 Andoya Hydro Electric Co. 1.0 Hydro TANESCO Isolated Feb 2015 EA Power Tukuyu 10 Hydro TANESCO main Darakuta Hydro 0.24 Hydro TANESCO main Feb 2015 Nov Mapembasi Hydro 10 Hydro TANESCO main

25 Parting questions What disruptive technologies are shaping markets for minigrids? What are the markets especially involving anchor customers? How can the regulatory environment be improved?

26 Thank you For more information, please contact: Chris Greacen: Book download: