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Decentralized Power Distribution The Ideal Role for Renewables in East Africa
Mark Hankins
CEO, African Solar Designs, Ltd
• INTRODUCTION
• ON-GRID DISTRIBUTED RENEWABLES: NOT YET TAKEN SERIOUSLY
• DISTRIBUTED DEMAND IS KEY FOR DEVELOPMENT OF RENEWABLE MARKETS
• LOCAL INDUSTRY IS READY FOR DISTRIBUTED RENEWABLES
• INDUSTRY CAN LEAD THE WAY FOR DISTRIBUTED RENEWABLE POWER
Outline
ON-GRID DISTRIBUTED RENEWABLES NOT YET TAKEN SERIOUSLY
How We Think About Power Investments
Pico/SHS/GMG
Off-Grid
1 W – 100 kW
Governed by Consumers
Household/Commercial Embedded
1 – 50 kW
Governed by Consumers
Industrial Embedded Investments
50 – 500kW On-Grid
Governed by supplier/finance
Smaller Megawatt Investments
0.5 MW – 10MW Power
Project
IPP Contracts, FiT governed
Large Megawatt Investments
>10 MW Power Projects
IPP Contracts, FiT governed
Decentralized Renewables
OFF-GRID SMALL-SCALE
VERY COMMON
>500,000 Pico systems
>250,000 100W PV SHS
>10,000 Institutional PV
Gen-sets, wind, etc
HOUSEHOLD COMMERCIAL
EMBEDDED
Relatively uncommon in
East Africa
BUT
Small battery & gen-set
back-ups are very common!
INDUSTRIAL EMBEDDED
Rare in East Africa
BUT
Gen-set are most common
solution for power back-
ups.
SMALLER MEGAWATT PROJECTS
FIT-based
RWANDA 8.5 MW
UGANDA REFIT PROGRAM
LARGER MEGAWATT PROJECTS
African power sector focus.
* Geothermal
* Hydro
* Natural gas
* Coal
* PV (RSA)
Distributed RE Power Plays a Small Role in East Africa
Small Scale Off-Grid MegaWatt
Projects
Helping Poor People
Generating Returns
A Divergent Market
DISTRIBUTED POWER IS KEY FOR DEVELOPMENT OF RENEWABLE MARKETS
TWO MARKETS WHERE DECENTRALIZED POWER HAS GROWN IN SIZE AND IN IMPORTANCE
USA
US PV Market Focus 2010-2014
GERMANY
29573 MW PV BETWEEN 2000 & 2014
RESIDENTIAL & COMMERCIAL SEGMENT MOST COMMON SIZE 33 kW
LARGE SCALE RE
DISTRIBUTED
10-30 kW
• LONG-TERM AVAILABILITY: Renewables provide consistent sources of power.
• COST: Distributed renewables at point of source are lower cost than EA grid electricity
• CLEAN AND GREEN: Reduce dirty emissions.
• STABILITY: Stable power at site and assist stability of power in local area.
• DIVERSITY: Multiple sources of power are good for the grid.
WHY SHOULD EAST AFRICA BE INTERESTED IN DISTRIBUTED RENEWABLES
LOCAL INDUSTRY IS READY FOR DISTRIBUTED POWER
Grid-Connected Power Solutions for Industry
1. text
DISTRIBUTED RENEWABLES
FINANCIALLY ATTRACTIVE?
Electricity: increasing portion of overall costs
2 year Range: $0.17 to $0.23/kWh Additional 5% for generator fuel costs Electricity prices follow petroleum prices Peak loads often over 200 kW
Industry will take distributed renewables seriously
• Financing increasingly available
• Technologies are maturing
• “Green” is important for marketing
• Embedded power doesn’t need permits
• New business models remove ownership risks
• Energy costs of renewables are predictable, decreasing
• Monitoring & management systems improving
Renewables can complement other power sources • I.e. Tropical Solar --- Biogas + PV
Renewables often match daily industrial loads
What is Holding Back Investment?
• Ignorance
• Lack of local capacity
• Perceived high costs
• Inability to invest up front in technology
• Fear of added complexity & management
• Bureaucracy and lack of policy support Source: Solar Century
INDUSTRY CAN LEAD THE WAY FOR DISTRIBUTED RENEWABLE POWER
Imagining a Distributed Power Future
• Lower energy costs. • Diversified opportunities. Power sector includes small-scale grid
connect as well as mega-watt opportunities • Strong demand. Consumers see distributed power as a high value
solution at all levels. • Finance. Finance available for developments, industry and
commercial demands. • Multiple business models. Lease-to-own, PPA’s, financed
systems, etc. • Expandable. On & off-grid customers can imagine a grid-
connected future with full services. • Policy Support. Distributed power accepted as a viable support to
the grid. Government targets, net metering, embedded power, wheeling & FiTs.
THANK YOU
Mark Hankins
CEO, African Solar Designs mhankins@africansolardesigns.com
Tel: 254-722-527710
@solarkenya
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