Micro Perspectives for Decentralized Energy Supply - Conference 2013

Overview

The International Conference on “Micro Perspectives for Decentralized Energy Supply” (MES) was established as an international forum to discuss the micro perspective of the technical, economic, social, and environmental aspects of microenergy systems.

The MES conference brings together leading academics from the social sciences, economics, natural sciences, and engineering, as well as practitioners (e.g. project developers and implementers, entrepreneurs).

Microenergy Systems provide solutions for single households or micro enterprises (e.g. solar home systems, improved cooking stoves, biogas plants), as well as technologies for several households or communities. For a long time, they have been regarded as transitional solutions towards centralized energy supply in developing countries, or as a negligible niche market in developed countries. In recent years, there have been growing expectations that decentralized energy systems will play an important role in shifting energy policy, as well as in contributing to poverty reduction and improved health, education, and overall quality of life. The MES conference will explore the technical, social, and economic factors and context conditions that can enable MES to meet these expectations.

Program Documentation

Tuesday, February 26

Mini Grids as New Market Opportunities: Experiences from Science and Private Sector

In cooperation with GIZ, Practitioner Workshop

Time: 9:00am - 5:00pm

Short description (MES Homepage)

More Information and full agenda

Power Point

Summary, more information (energypedia article)

Financing Decentralized Energy Supply for Low-Income Markets

In cooperation with GIZ, Workshop

Time: 9:00am - 3:00pm

Short description

Power Point

Summary

Wednesday, February 27th

Enabling energy supply for low-income markets through mini-grid solutions

In cooperation with Reiner Lemoine Institute, Mini-grid Workshop

Time: 9:00am - 5:00pm

Short description, Agenda

Power Point

Summary

PEP-Information Exchange “PV-Hybrid on the Philippines”

In cooperation with GIZ, Workshop

Time: 10:00am - 5:00pm

Short description

Power Point

Summary

Facilitating Energy Access: the Practitioner Perspective

In cooperation with the Energy Access Practitioner Network of United Nations Foundation, Practitioner Workshop

Time: 1:30pm - 5:00pm

Short description

Power Point

Summary

Conference Kick-of: Exhibition and Opening Session

Exhibition: Teaching Technology Tools – Building a global energy training laboratory.

Time: 5:00pm

Short description

Opening Session: Sustainable Energy Access for all. Chances and Challenges from the Microperspective.

Time: 6:00pm

Short description

Thursday, February 28th

MES Opening Session

Time: 9:00am - 11:00am

9:00 am Welcome note: Prof. Dr. Paul Uwe Thamsen, Vice President of Technische Universität Berlin 9:15 am Keynote: Patricia Kawagga , Coordinator at Rural Electrification Agency, Uganda 9:45 am Keynote: Daniel Kammen, Professor in the Energy and Resources Group, University of California, Berkeley 10:15 am Energy Research at TU Berlin, Prof. Dr. Felix Ziegler 10:30 am Introduction to the Postgraduate Program Microenergy Systems 11:00 am Introduction to the Conference Program

Block I: Parallel Research Presentation Sessions

Time: 11:15am - 1:00pm

The Potential of Mini Grids and Critical Factors

Overview

Universal energy access remains a challenge despite being essential in enabling human development. There are 1.3 billion people without electricity worldwide (International Energy Agency [IEA], 2011) while electricity is the essential basis for the improvement of elementary needs, like light, communication, education, health and safety. Further, electricity has been repeatedly linked to poverty reduction.

Over 80% of the 1.3 billion lacking electricity live in rural areas and therefore, self-sustaining island systems (mini-grids) are mostly the only possibility to bring electricity and to grow local economy. In consequence of rising fuel prices, renewable energies have become more interesting to bridge the energy gap.

Motivation

Mini-grids offer ideal conditions for a grid independent electricity supply. When they are renewable energy based, become a key element for rural electrification. Nevertheless there is not only a necessity of sustainable business models for energy supplying of hundreds of millions of people, but also a comparison of all countries need to be done in order to identify the most important players on this field.

Methodology for the country ranking

The methodology for the study was aimed to identify the hugest market potential and the best political and financial environments. Due to this the next exclusion criteria and their respective weighting was considered:

• Electrification rates over 95 % and less than 200,000 people in rural areas without electricity (98 countries excluded)
• High political instability (considering the travel warning issued by the German Ministry of Foreign Affairs – April 2012 – and the worldwide governance indicator < 5%).
• Very low diesel prices
• Criteria not included:
  • No quantification possible
  • Not available on a global scale

Weighting and scoring of each criterion

The weighting and scoring of each criterion was proposed by the authors as follows:

A: Market potential [40 %]

• 30 % - Electrification rate [World Bank, IEA, UNDP]

• 50 % - Rural population without access to electricity [calculated]

• 20 % - Pump price for diesel fuel [World Bank]

B: Political and financial environment [60 %]

• 15 % - Political stability [World Bank]

• 20 % - Corruption perceptions index [Transparency Int]

• 15 % - Inflation [World Bank]

• 50 % - Ease of doing business index [World Bank]
======

Results of the country ranking considering the proposed criterion

Rank	Country	Electrification rate [%]	Rural population without access to electricity	Worldwide governance indicators: political stability [%]	Pump price for diesel fuel [USD/liter]	GDP per capita [USD]
1	Rwanda	5	8.5 mio	41.5	1.62	530
2	Zambia	19	8.0 mio	63.7	1.52	1,250
3	South Africa	75	8.6 mio	44.3	1.14	7,280
4	Botswana	45	0.7 mio	78.3	0.97	7,400
5	Namibia	34	1.2 mio	71.7	1.09	5,330
6	Ghana	61	9.1 mio	47.6	0.83	1,320
7	Kenya	16	29.9 mio	13.7	1.27	790
8	Uganda	9	27.8 mio	15.6	1.11	510
9	United Republic of Tanzania	14	32.3 mio	45.8	1.19	520
10	Peru	86	5.9 mio	20.3	1.10	5,400

Conclusions

The study reveals that:

• Good political and financial environment combined with high electrification needs are to be found especially in South and East Africa.
• Large market potential and poor political and financial environment are often found coupled and vice versa.

Q&A Session

• The specific criteria for minigrids have to checked at the end locally
  
• How was calculated the rural population???
  
• Taking into account the number of rural electrification per country (%) and number of poverty (%)
• Why some countries which do not have a clearly huge electrification rate were excluded?? (E.g. Bangladesh)
• Combination of market, political environment and the weighting and scoring
• Did you make a sensitive analysis for each variable??
• o Yes, it was done.
• Cost of finance – ability of finance (Setting a company up, infrastructure) How was it taken into account??
• Not considered because it was so extensive the investigation
• All the collected data is standardized and may not reflect exactly the situation in each country

Potential of mini-grids and critical factors

by Dr. Teodoro Sanchez of Practical Action UK

Based on practical studies and own experience, the Dr. Tedoro Sánchez of Practical Action identified the critical and important factors for the performance of small stand alone systems in rural areas:

Critical Factors	Important factors
a) Local context	a) Local context
Management Local capacity	• Effective bill collection • Household benefits from electricity • Load factor • Capacity to pay • Cost of energy • Community participation • Low connection cost • Source of energy • Ownership • Political interference
b) National Context	b) National context
Technical Assistance	• Degree of development of the village • Market connection • National capacity • Legal framework • Bureaucracy • Proper tax frame

New management models which build the capacity of communities to operate and manage energy schemes needs to be introduced in rural areas.

Q&A

• How a difference between critical or important factor is done?
  • First, a discussion of several specials from different areas is done in order to identify critical/important factors and finally a practical field investigation is done for verifying which of them were really critical or just important.
    

An Objectives Analysis for Improved Holistic Design of a Rural Electrification System

By Maizaklah Ayu Abdullah

Introduction and Motivation

Energy access programs should not focus on merely providing electricity services, but on delivering human development impacts. Existing approaches to rural electrification are oftentimes fragmented and leads to poorly designed systems. Integrating the rural electrification system’s social, technical and financial aspects calls for a more holistic design process, where the understanding of end user requirements and using their participation could lead to an instrument to achieve high-level goals of capability enhancement.

Methodology

In order to understand the expansion of system boundary including human capabilities and to incorporate human development goals in the earlier stages or rural system design process, a field work was carried out in Tonibung, Buayan. This community has a community-based Micro-hydro power plant. After the field work and to merge human development theory with engineering design process the Systems Engineering Modeling Language (SysML) was used. It depicts graphically the decomposition of a rural electrification system (Technical and social); allows to identify the main issue (Top level); has an expanded view of the system and keep track of the capabilities, needs and opportunities.
======

Results

The upper level of the SysML diagram represents the main system value. By solving lower levels this main value could be reached. The SysML allows as well to identify where the technical skills, knowledge transfer, Local institutions & Management skills, Environmental resource management, Technical artifact, Lowering costs and Economic activities are located.

Conclusions

It was presented a learning tool for the management of the energy use in order to make not only a change of the point of view of just giving electricity access, but also go give and develop full integrated solutions with energy management systems.
======

Q&A

1. How the leader of the community was approached??

• The Leaders have to know, how in other communities mini-grids are working by visiting other sites. Community has to be a very active player in the system, they should suggest energy solutions, among others
• If there is no compromise of the community the project fails very quickly

2. How is the social economy background of the communities? How is people taught to use it..

• They don’t handle money very often
  
• Basic education
  

Designing a Sustainable Model for Financial Viability of Decentralized Bio-fuel based Power Projects

By Debajit Palit

Introduction and Motivation

The study was carried out under the OASYS project, which have the objectives of having a cost effective and reliable off-grid electricity supply and assessing if local solutions have a scaling up and reproducibility.

The design of this model includes an analysis from the perspective of all key stakeholders: Project Implementing Agency: evaluate the techno-economic viability of SVO system based mini-grids to provide rural electricity services; Government: assess the financial burden of subsidies for making electricity affordable as compared to extending the central grid for rural electrification and the consumers: tariff within the payment capacity for availing the electricity services.
======

Methodology

The design of the system was analyzed with different mechanism and includes also possible solutions for its deployment:

• Estimation of Minimum Desired Price (MDP) of electricity under different operating conditions for ensuring viability of SVO systems
• Based on actual field performance data collected from a number of projects implemented under VESP
• Finding MDP from a consumer’s perspective and viability gap analysis to estimate any gap
• Possible mechanisms to bridge the gap and suggest breakeven price under different scenarios
• Suggests an integrated approach for ensuring long term ‘sustainable electrification’ with SVO systems as an option in the remote rural areas

Conclusions

The model has a huge potential to generate employment through biofuel plantation and processing to enhance local income and at the same time generate electricity to serve the same area. But a sustainability condition taking into account the next points has to be present: Enabling policy, appropriate technology, local skills and innovative financing.

Q&A

• The water for producing biofuel is enough for biofuel based mini-grids

Biofuel is produced by big plants and needs to be decentralized.

Block II: Parallel Research Presentation Sessions

Time: 2:15pm - 4:00pm

Networking & Market Place

Coffee Break (Room no. H1035, Main building)

Time: 4:00pm - 5:00pm

MES Public Evening Session

Time: 5:15pm - 6:00pm

5:15 pm Welcome Note: Prof. Dr. Martina Schäfer, TU Berlin 5:20 pm Public Session: Klaus Töpfer, Rethinking Science: Energy Research & Sustainable Development

Evening Panel Discussion

Time: 7:30pm

Rethinking Remoteness – Access to Energy in Rural Areas and Megacities Panelists: Daniel Kammen, Professor in the Energy and Resources Group, University of California, Berkeley Diarra Mahamadou Karamoko, Mali Folkecenter for Renewable Energy Susanne Rotter, Chair of Solid Waste Management, TU Berlin Friedrich Barth, United Nations Development Programme (UNDP) Moderation: Sebastian Groh, Postgraduate Program Microenergy Systems, TU Berlin

Friday, March 1st

Block III: Parallel Research Presentation Sessions

Time: 9:00am - 11:00am

Block IV: Parallel Research Presentation Sessions

Time: 11:30am - 1:30pm

Business Models for Solar-Based Rural Electrification

• energypedia Artile: Business Models for Solar-Based Rural Electrification

Facing the Operational Challenges of Minigrids

Moderator: Philipp Blechinger

1 “Analyzing drivers and barriers for renewable energy integration to small islands power generation – taping a huge market potential”.

by Enrico Howe, Reiner Lemoine Institut

1.1 Introduction and Motivation

This presentation discussed findings on how socio-economic and natural factors have influenced the introduction of renewable energies to island electricity grids. Financial, market, policy and natural factors are studied in order to analyze which of them could be drivers or barriers for successful technology specific renewable energy implementation to islands. The existence of a regulatory framework, using e.g. a feed-in tariff, is the most important for the large-scale implementation of young renewable energy technologies as PV and wind energy. Furthermore a spatial Geographic Information System analysis of global islands is carried out to describe area, location and population of the islands.

1.2 Methodology

There is a special remark on the market potential of global islands as well as on the socio-economic factors. Until now, island grids are mostly supplied by diesel generators which results in both high CO2 emissions and high electricity tariffs. The renewable energy resources on islands are very good even in some pacific islands geothermal energy could be used.

Indonesia and Philippines have the densest population, while on less than 10,000 islands live less than 10,000 inhabitants.

The analysis took into consideration:

• Independent and semi-autonomous island states
• No base load power plants
• No grid connection
  
• Highest population < 3 Mio. Inhabitants
  
• Max. 2 GW installed capacity

Considering the socio/economic factors: GDP, competition, ownership (private or not), regulatory framework, energy vision), analyses were carried out for the specific scenarios (only PV, only hydro, only wind, all RE, only new RE) were developed and analyzed.

1.3 Results

• Each scenario has (at least) one very good determinant
• There is a big spread of variation
• Feed-in tariff programs are highly recommended
• 87,000 islands with 11,300 inhabitants were examined
• Hydro is not affected so much by socio/economic factors

1.4 Q&A

1. The implementation of regulatory frameworks (e.g. feed-in tariff) or any other support from the governments was taken into consideration.
2. A unique regulatory framework for islands should be supported. The current ones do no work perfectly. The share of renewable energies is increased by incentives such as feed-in tariff (no matter how bad the tariff is, it always helps to increase the RE share).

'2 "'A community managed Micro Hydro connected Mini-Grid in Nepal"

by Bhupendra Shakya, Renewable Energy for Rural Livelihood Programme AEPC

2.1 Introduction

Despite Nepal has a high hydropower potential and enough Renewable Energy sources, there are still many people in rural areas that do not have access to electricity. This presentation focused on Micro-hydropower systems (MH) and on the innovative concept of a community managed micro hydro system connected as mini-grid, which was established as a pilot project in Baglung, Nepal. The current technology allows to run parallel six Micro hydropower plants (MHP). A cooperative has been created for the sustainable management of the system.

2.2 Motivation

The investigated region is located between China and India. The potential of hydro-power in this region comes up to 83 MW, of which only 1% is used. Nowadays, there is still a high dependency on oil and other traditional energy sources. 56% of the population has access to electrification. The Ministry of Energy responsible for the grid extension does not have rural electrification as a priority. Different organizations such as AEPC (Alternative Energy Promotion Centre) have provided support to off-grid-systems.

10% of the population was connected to the grid thanks to the RERL-Program (Renewable Energy for Rural Livelihood) that was founded in 1996, covering 31 out of 75 districts. The parsed households are far away from the grid or neighborhood.

Hydropower plants with less than 100 kW are categorized as micro hydro and deploy in regions with available water resources and suitable terrain, accounting with an installed capacity of 22 MW.

2.3 Challenges

Main Problem: The energy supply was not reliable during supply period. Lighting is, in many cases, the only use of electricity. A threat to the micro hydro plants is the expansion of the grid, which implies a waste of resources as the MHP are likely to be abandoned as soon as the grid reaches the region.

2.4 Results

An interconnection between the mini-grid and the national grid was established, by offering a sizable load to the NEA (Nepal Electricity Authority). The surplus electricity of one/more MHP is balanced with the deficit electricity of other MHP. In order to assure system sustainability, the revenues of the MHPs are increased from the high use/sale of electricity.

In the Baglung Mini-Grid Project, 6 MHP are connected to each other, with a total capacity of 107 kW providing services to 1200 households. The management of the plants is community based, while MHP functional groups out of community organizations are present, making the project financially viable. A microprocessor based control system synchronizes various MHPs and manages the connection to the national grid.

The use of the MHP brought a sense of unity to the community and a high sense of confidence to own and manage bigger projects by having not only technical and social advantages, but also economical.

2.5 Q&A

1. Handling the load of the MHP: the challenge is the load capacity, during the day only 3 or 4 MHP have to run, not all of them.
   
2. If a connection to the grid is present, then no load management would be needed. The hydro plants could be controlled with valves and control units that depend on the actual load, instead of controlling them manually. – The load is being controlled with the synchronizable electronic load controller (ELC), not the flow.
   

3 “Overcoming grid instability in Microgrids by using a flywheel energy storage system while operating a PV/diesel hybrid system”

By Martin Baart, ABB

The third presentation was cancelled and Mr. Martin Baart from ABB held a spontaneous presentation.

3.1 Introduction and Motivation

The so called Marble bar hybrid system is installed in a remote Australian area. Australia has a regulatory framework which obligates the utilities to provide the same quality of power with no exception between urban or remote areas.

Since there are some technical projects being carried out in Marble Bar, the need of stable power was the huge challenge. Thanks to a lot of space available, a 300 kW PV system with single axis tracker was installed and combined with 4 x 320 kW diesel generators and a 1 x 500 kW power store grid stabilization device (flywheel energy storage).

3.2 Challenges of the system

• The system is used on a daily basis.
  
• When the generator load is set for operation, it cannot be changed often.
  
• The combination of PV and Diesel requires limiting the power of the PV system.
  
• The surplus of the PV plant has to be limited in order to operate the diesel generators in safe conditions. Not limiting the load would drive the generators as motors.
  
• Thermal plants have lower fuel efficiency.
  
• Necessity of back-up for the case of cloud-covering (no power from PV).
  
• During operation, frequency and voltage are measured in order to assure stability through the flywheel control. The flywheel storage system can switch in 5 ms from 100% energy absorption to 100% energy rejection.
  

3.3 Results

PV-systems are not a stable source of power, even in sunny days. There have been cases, where there was no cloud coverage at all, but the PV-power was not maximum due to air-particles that cannot be seen by humans.

The construction of the generators demands their operation within 15-30 % of their total power at least, which implies that the PV-system can never be used to 100% capacity.

The frequency is constantly changing; it can fluctuate around off-grid systems with no need to be around 50 +/-0.2 Hz.

3.4 Q&A

1. What could be said about the price of the whole system? It is hard to say, prices depend on the size of the system, the required capacity and used technology.
2. Has this system been used in combination with other RE-sources? There has been a solution for hydro-plant in the Atlantic, the hydro-generators were able to run for 5 days in a row.
3. Spinning reserve is needed to ensure a failure of the plant can be covered (since there is volatility in the RE-source). Two diesel-generators are the minimum needed, even if only one of them is in use, the other should be a back-up.
4. Why is the load of the system so high (2 MW)? The research-basis needs a huge load. Even though it is critical to have RE-sources for a stable supply, this system could perform well enough.

4. Open Discussion and Questions

1. Are there common regulatory frameworks on islands? The regulatory frameworks on islands are crucial for the deployment of RE, but they are related to the countries. Semi-autonomous countries have a strong link to their former colonial countries and most of them use feed-in tariffs.
2. How big is the influence of regulatory frameworks in reality, for example in Nepal? In Nepal there is no feed-in tariff existent. Due to this, there are technical solutions for cooperation.
3. The utilities have to take care of power quality.
4. Does a framework for the framework exist, something like an international overlook from all countries? Not exactly. IRENA (International Renewable Energy Agency) exists and advices countries in policies setups or prevent mistakes while regulatory frameworks are being developed. Caribbean islands for example have a strong influence from the US. In addition, frameworks help to develop better business plans for RE.
5. Difficulties in financing huge projects? Two points of view: (1) People have the money and invest because they know that the system in going to be paid. (2) Small communities that need the energy supply are mainly financed by NGOs and third parties.
6. Suggestion of ABB to the control system used in Nepal: control the valves by the load differences.
7. Are there any problems concerning the paying strategy/financing in Nepal? No, the project is financed by the people who are paying for the electricity.
8. Outlook of the Nepal project: follow-up projects without the need of financial support from the outside.
9. Gradual shift to community credits, no tariff by connecting to main grid.
   

Block V: Parallel Research Presentation Sessions

Time: 3:00pm - 5:00pm

Energy SME Financing

In coopeartion with SBI

Knowledge Management and Transfer for Microenergy Systems – Crossing Borders Worldwide

In cooperation with energypedia

Closing Session

Time: 5:30pm - 7:30pm

Rethinking Power: Designing an Energy System for Peace and Sustainability 5:30 pm End note: Prof. Dr. Dr. Franz Josef Radermacher, Expert in the field of socio-ecological market economy, one of the co-founder of the Global Marshall Plan Initiative and Professor for Informatics at Ulm University 6:00 pm Closing Panel Discussion (in cooperation with NaturwissenschaftlerInnen-Initiative, Verantwortung für Frieden und Zukunftsfähigkeit e.V., NatWiss) Panelists: Christine Wörlen, Expert in the field of renewable energy policies and energy systems integration in the global south and north Diarra Mahamadou Karamoko, Mali Folkecenter, Mali, and Expert in development and financing of renewable energy enterprises in Mali Reiner Braun, Executive Board at the German Scientists Association for Peace and Sustainability (NatWiss) and the Managing Director of the Federation of German Scientists (FGS) Moderation: Noara Kebir, Managing Director at MicroEnergy International 7:30 pm Farewell Note: Prof. Dr. Martina Schäfer and Students of the Postgraduate Program Microenergy Systems

Further Information

• MES 2013 Programm