PPA/e7 Renewable Energy Workshop for Southern Utilities



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PPA/e7 Renewable Energy Workshop for Southern Utilities Victor Prasad & Rajan Anand PRESENTATION OVERVIEW Background Information 10 min Fea core function New Structure What we stand for Brief overview of current situation in fea Why Renewable.and why now? RE projects in fea current & future Case Study Butoni Wind Farm 15min Descriptive Planning a wind farm

CONSTITUTION & CORE FUNCTION The Fiji Electricity Authority (fea) was established, incorporated and constituted under the provisions of the Electricity Act of 1966 and began operations from August 1 st of that year. The fea is responsible for generating, transmitting and retailing electricity in Fiji Members of the Board approved by the Minister of Works and Energy. CEO is responsible to the Members for the Authority s management and for execution of its policies The powers, functions and duties of the Authority under the Electricity Act are for the basic purpose of providing and maintaining a power supply that is financially viable economically sound and consistent with the required standards of safety, security and quality of power supply CONSTITUTION & CORE FUNCTION A uniform tariff rate is charged for electricity used by each consumer group. The tariffs are fixed according to government policy. Domestic lifeline tariff (<250kwh/month) 20.59c Domestic other tariff (>250kwh/month) 21.27c Commercial & industrial tariff (up to 14,999kwh) 22.14c Commercial & industrial tariff (>14,999kwh) 20.00c The Authority is also entrusted with enforcing the Electricity Act and regulations, setting standards, examining and registering electricians, and is empowered to approve and license suppliers to serve certain areas. Fea is also governed by the requirements under the Public Enterprise Act

VISION, MISSION & VALUES An image of our desired future : Energising our people and our Nation Vision Mission What FEA is here to do : We will provide clean and affordable energy solutions to Fiji and the Pacific. We aim to provide all energy through renewable resources by 2011 Values How we intend to operate as we pursue our vision: Customer focused Honesty Courage to do what is right for FEA Team work Individual accountability Transparency Innovativeness

CURRENT STATUS Installed capacity 180 MW Rated Thermal 88 MW Hydro 80 MW IPP s 10 MW Maximum demand 111 MW Energy production (2004) 650 GWh Number of customers 135,000 Growth rate 5.5% /annum Transmission/ distribution system 132KV, 33KV, 11KV and below Total 132KV line 143km Total 33KV line 322km 11KV & below 6,200km Domestic other tariff (>250kwh/month) 21.27c

WHY RENEWABLE.& WHY NOW?? fea s DRIVE FOR RENEWABLE ENERGY To comply with Kyoto Protocol on reducing green house gases - (each MW hour of electricity generated in Fiji produces 0.69tonnes of greenhouse gas pollution) To benefit from Clean Development Mechanism For Fiji s electricity prices to remain competitive Rapidly increasing diesel fuel burn Substantial exposure to highly volatile global oil market with risk of high and volatile diesel prices To reduce foreign exchange leakage out of Fiji EXORBITANT PRICES!! And to be innovative and think outside the box

DEMAND SUPPLY PROJECTION 160 MW 140 120 100 80 60 40 20 Unrel diesel Exist Diesel Sigatoka Ba FSC Rarawai Butoni Tropic Woods New Diesel Vaturu Wainikasou Exist Other Hydro MD 0 2004 2005 2006 2007 2008 2009 2010 OUTCOME OF CURRENT INITIATIVES Potential replacement for diesel: Geothermal 1000 Gasification 900 Mini hydros 800 Wind GWh 700 600 500 FEA Diesel IPP Other Fuel Solar Co-generation 400 300 200 FEA Renewable Energy 100 0 2004 2005 2006 2007 2008 2009 2010

AVERAGE COST OF DIESEL $1,200.00 $8,000,000.00 FJD per MT $1,000.00 $800.00 $600.00 $400.00 $200.00 $7,000,000.00 $6,000,000.00 $5,000,000.00 $4,000,000.00 $3,000,000.00 $2,000,000.00 $1,000,000.00 Diesel use per month $- Jan '04 Feb '04 Mar '04 Apr '04 May '04 Jun '04 Jul '04 Aug '04 Sep '04 Oct '04 Nov '04 Dec '04 Jan '05 Feb '05 Mar '05 Apr '05 May '05 Jun '05 Jul '05 Aug '05 Sep '05 $- FJD per MT Diesel usage

MONASAVU DAM LEVELS Dam Level (masl) 750 748 746 744 742 740 738 736 734 732 730 728 726 724 722 720 718 716 714 712 710 708 Jan Maximum Dam Level 2004 2002 2005 2003 Safe Minimum Level Absolute Minimum Operating Level Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Months

AVERAGE DEMAND PROFILES 120.0 110.0 Load (MW) 100.0 90.0 80.0 70.0 60.0 50.0 40.0 30.0 20.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Max Min Peak 10.0 0.0 0.02 0.06 0.1 0.15 0.19 0.23 0.27 0.31 0.35 0.4 0.44 0.48 0.52 0.56 0.6 0.65 0.69 0.73 0.77 0.81 0.85 0.9 0.94 0.98 Time of Day Independent Power Producer Interest Studio city (5) Rakiraki Lautoka Elpicon (40) Denarau (5) Ba FSC(15) Tropik(9) Solar (1) Vuda Vaturu Nadi Tavua Emperor (5) Nadarivatu (54) Wailoa Momi(9) Bula Marina(10) Natadola(8) Butoni (10) Sigatoka IRD (5) Korolevu Fj_Hwd(5) Navua Deuba Suva IRD_Naboro (5) Load Centres Cities & Towns New generation

RENEWABLE ENERGY PROJECTS Tavua Rakiraki Navutu Solar Project 1MW (2006) Ba Lautoka Nadarivatu HE Project 45-55MW (2007) Ovalau Waqadra Vuda Vaturu HE Project 3.2MW (2005) Nadi Wainikasou HE Project 6.5MW (2004) Wailoa Ovalau Wind Project 250KW (2006) Momi Natadola Kinoya Butoni Wind Farm Deuba Sigatoka 10MW (2006) Korolevu Suva RENEWABLE ENERGY PROJECTS Savusavu Wind Project (2006)

NADARIVATU HE PROJECT Nadarivatu 1 Power Station Nadarivatu Dam Tunnels & Penstock Nadarivatu 2 Power Station Ex 132KV line POWER GENERATION SCHEME LAYOUT

NAVUTU SOLAR PROJECT 10KW Navutu Depot setup Area = 94m 2 Contains 140 panels Generated (average) 8.25 KWh per year

RENEWABLE DEVELOPMENTS Project Project capacity Milestones $ value Wainikasau - Hydro 6MW Completion by May 2004 $10M Vaturu - Hydro 2.8MW Commence May 04 (SEL) PWD to complete Jan 06 $5.5M Butoni Wind Farm 10MW Construction to start in November End in December 06 $32M Nadarivatu Hydro 45-55MW 2006 start and completion by Aug 2008 $150M Solar - Navutu 1MW RFT Stage?? Geothermal?? Studies under way?? Bioenergy options (Biofuel & Biomass)?? Studies under way coconut oil trials, biomass options, vegetable oil potential?? Mini Hydro options?? RE atlas underway in 3 rd quarter 3 potential projects?? Butoni Wind Farm fea s first wind farm

BUTONI SITE Nadi Airport Wind Farm Site

BUTONI WIND FARM Low moderate wind speed conditions (av. 5.46 m/s) Short-term data set only (less than a year) Moderate correlation to Nadi airport low wind Narrow north-south ridge 5-6 kms from Sigatoka Located along Butoni hill ridge, behind Sigatoka Town 37 Turbines, 55m high, 2 blade structure 275kW each, 10.175 MW in total ( 13% capacity factor) 11.5GWh annually (2% of current annual supply to Viti Levu) Operates in wind speeds 4-20m/s Can be lowered to ground in response to cyclone warnings, and reerected approx 40 min Require up to 5 full time equivalent staff to maintain / operate Vergnet Supplier of water and wind energy systems niche player Supply 40 million people with clean water (mainly Africa) Supply 100 wind turbines per year worldwide Wind turbines in 20 kw, 60 kw and 275 kw sizes

TECHNOLOGY PREFERENCE Technically, Vergnet is ideal for our situation due to: Size of Machine 275 kw (not too big for grid integration) Anti-cyclonic protection Light lifting equipment required Proximity in New Caledonia No Heavy Crane Guyed supports On ground assembly and maintenance

MAIN STEPS IN DEVELOPING A WIND FARM 1. Wind monitoring mast installed (approx. 30 50m) 2. Preliminary baseline flora & fauna assessment 3. Preliminary baseline cultural heritage 4. Preliminary development envelope (typical generator layout) 5. Environmental protection conservation act referral (EMP) 6. Detailed initial impact studies floura &fauna assessment, avi-fauna, cultural heritage assessment, acoustic assessment, visual impact, shadow flicker, TV interference 7. Local consultation socio economic study 8. Submit application 9. Community comment (stakeholders) 10. Application approved 11. Final local impact studies 12. Detailed EMP for construction (CEMP) 13. Commercial agreements signed LOU 14. Construction 15. Commissioning 16. O&M PLANNING A WIND FARM 1. Quality wind data have you got sufficient information and is the wind consistent 2. Impact on environment nimby phenomenon 3. Acoustic effects once people know a project is on the way, new houses get built compensation issues 4. Best to do baseline studies to avoid compensation issues after (do tests before and after) 5. Archaeological sites Fijian way was to bury their loved ones under their houses. So avoid house mounds compensation issues 6. Consider climatic conditions Fiji has an average of 3-4 cyclones per year 7. Terrain ask yourself whether a project is possible. 8. Sizing turbines always consider lifting capabilities in your country after the project and consider the weather. 9. Spare parts how much do you keep on the books (commercial decision) 10. Grid connection is grid connection possible? Is grid in close proximity? Can your system take the power generated from a WTG?

PLANNING A WIND FARM 11. O & M have you got expertise in the country? How far away is help? 12. Good access for construction vehicle and machinery is essential (contractors concentrate on the WF and forget access is an integral part of the project) 13. Storage issues need good storage facilities for the rotor and nacelle 14. Road and traffic management are your loads sufficiently designed to take the huge loads. Need to do traffic study and bridge count. Need to check bending radius 15. What are you capabilities after contractor leaves project site? 16. Survey plans are your Lands department plans correct? What contour maps do you have? Need detailed contour maps. 17. Is large area available for optimum spacing of WTG (only 1% land taken up) 18. No risk sharing from local contractors 19. Need to do a risk management exercise together with all parties for the good of the project 20. Landowners & local community need to get a good feel before you commit single most critical factor!! PLANNING A WIND FARM 21. Communication protocols grid code issues 22. Need good working drawings different countries have different standards. In the Pacific, we generally follow Australia 7 NZ standards 23. Have a well defined contract deal with issues like Liquidated damages, penalty and bonuses well 24. Have to make safety the number one priority need alignment with other organisations 25. Need a project management plan, engineering management plan, quality management plan and maybe a safety plan 26. Need a dedicated Project manager one focus 27. 80 20 rule :80% time is spent planning the plan, 20% is spent working the plan. 28. Contracts best managed as a Turn key contract rather than reducing scope for principal contractor. Establish rules of communication early! 29. Government incentives and Duty and tax issues 30. Transmission component of the WF project easy to lose focus.

HISTORY OF A PROJECT

The Saga!! THANK YOU