Feasibility of Large Scale Solar PV in Nepal Solar Power to Fight Nepal s Energy Crisis - Presentation to IOE Centre for Energy Studies- Sandeep Giri President, Gham Power Nepal Private Limited Kathmandu, Nepal sandeep@ghampower.com March 12, 2009
About the Speaker: Successful Silicon Valley Entrepreneur Returns to Nepal to Tackle Energy Crisis Technology Entrepreneur Geek with Biz Cred Obsessed with Clean Tech President, Gham Power Couldn t Watch Nepal s Energy Crisis From Sidelines; Founded Gham Power as Exclusive Partner of a Premier American Solar Company; Financing from Clean Energy Development Bank; Born and Raised in Nepal Sandeep Giri CEO, OpenI ( 07-Present) Open Source Business Intelligence; Established Offshore Sister Company Codemandu in Kathmandu Educated in US; MS in Computer Science; Solar Energy Certification (U of California-Berkeley) CEO, Loyalty Matrix ( 02-07) Grew 5-person Company in SFO to $2 Million in Revenue; Acquired by Responsys in 2007
Gham Power: Exclusive Dealer Representative for Solar Power, Inc. Solar Power Inc. is a Public Company in US; Their Solar Panels are Rated #1 in the World for Performance. Gham Power is their Exclusive Dealer Representative for the Entire Country of Nepal.
Problem, Opportunity, and Solution
The Problem: Nepali Energy Crisis Government imposed a daily 16-hour electricity blackout starting November 2008; this is a protest march of electric 3-wheeler taxis rendered useless. Load-Shedding is projected to continue for at least next 10 years.
Inadequate Electricity Supply with Limited Scalability Results in Band-Aid Solutions Country s Total Peak Demand: 800 MW; Country s Total Capacity: ~500 MW; ~100 MW of New Power Plants Underway, but Takes 4-5 Years to be Online Band-Aids: Daily 16-Hour Blackout Horde w/ Inverter/Battery Diesel Generators 1400 Energy Supply and Demand in Nepal 1200 Peak Load (MW) 1000 800 600 400 Demand Supply.. which is not enough, meaning.. 200 0 2009 2010 2011 2012 2013 People set alarm for 2 am so they can iron their clothes A family is without any water for 3-4 days since water pump doesn t run Businesses have to reduce hours of operation, specially at night Even those with diesel generators not better off since fuel supply is not certain
Why Not Solar? Conditions are Great! Nepal in Prime Solar Area Average 5 Sun hours/day 5.5-6.0 Kwh/m 2 /day (World leader in Solar Germany gets 2-3 kwh/m 2 /day)
Big Opportunity to Serve Urban and Commercial Sector ~50 Solar Installer Companies in Nepal; Almost All Focus on Rural because of Subsidies Energy Demand Higher in Urban/Commercial Yet Completely Underserved IF Solar Available at Price of Diesel, Big Opportunity to Serve Those Buying/Considering Diesel Today
Large Scale PV Installations
How Does Solar PV Work? All Rights Reserved 2009, Gham Power Private Limited
Typical Solar PV Installation is on Roof
Sometimes Also in Open Yard Area
Parking Lot Installations Common for Businesses
Large Scale Solar Power Plants becoming more Common like this one in Germany (10 MW)
Solution: Solar as Complete Power Alternative with Costs Less than Diesel Generator Premium Residential Luxury Residential Commercial For typical single family urban Nepali home: 1-2 kwh/day production Lights TV and Computer OR ½ HP Water Pump OR Household Appliances like Fridge, etc. For typical multi-family urban Nepali home: 3.5 kwh/day onwards Lights TV and Computer 1+ HP Water pump Common Household Appliances (Fridge, Rice Cooker, Iron, etc.) For retail stores, office spaces, warehouses All lighting Phone, fax, computers Air Conditioner Refrigerators, Freezers Office appliances Machinery
Price Ranges and Financing Products Premium Residential Luxury Residential Commercial Typical Pricing (*these are ranges, actual prices might vary, based on a 5-year loan at 12%) Size 185 w ½ kw 5 kw Daily Production 1.1 kwh 3.4 kwh 34 kwh Cost per Month with Financing Rs. 2,900 (~$35) Rs. 7,548 (~$ 100) Rs. 73,674 (~$1,000) Cost/KWH $ 0.60 $ 0.51 or $ 0.46 or (*10-year) Rs. 45 Rs. 38 Rs. 35
Competition: Diesel is Unreliable, Cumbersome, Expensive, and Dirty Availability Ease of Use Total Cost of Ownership Clean Noise Diesel Generator Fumes $$$ Silent $$ No Moving Parts
Challenges: Myths, Cost and Technology
Eradicate Nepali Myths on Solar with Facts Myth #1: Solar only runs lights, can t power heavy equipments Fact: Only constraining factors for solar are the size of inverter and the total surface area available to install solar panels Myth #2: In winter, solar water heaters become completely useless! How is Solar going to generate electricity when it s so cold? Fact: Solar PV Technology has nothing to do with temperature. It only needs sunlight to produce electricity, not the heat!
Batteries Make Off-Grid PV More Expensive Per-Watt Subsidies and Net Metering Needed to Reduce Costs
Problem: On-Grid Assumes Always-On Grid
Possible Solution: AC Mini-Grid Suggested Research Topic for IOE Center of Energy Studies
Examples: Seeing is Believing Reference Installations by Solar Power, Inc. Gham Power s Partner Company in the USA
STAPLES Center, Nokia Theater Los Angeles, CA Location: Los Angeles, California Installation Type: SkyMount TM Rooftop System Size : 345.6 Kilowatts
STAPLES Center, Nokia Theater Los Angeles, CA
Aerojet Sacramento, CA Location: Sacramento, California Installation Type: Single-axis Tracker System Size : 3.6 Megawatts
Aerojet Sacramento, CA
4.4 kw Residential Roseville, California
7.6 kw Residential Granite Bay, California
7.6 kw Residential Roseville, California
9.45 kw Residential Granite Bay, California
Summary Energy Crisis in Nepal = Opportunity for Solar for Urban and Commercial Sector Solar must be Available at Price of Diesel to Compete in Large Scale Needed Awareness: Runs heavy equipments, doesn t need heat Policies: Subsidies, Net Metering Technology: Reducing Battery Costs ( AC Mini Grids )
Thank You!