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Proceedings of ASME 2010 4th

International Conference on Energy SustainabilityES2010

May 17-22, 2010, Phoenix, Arizona, USA

ES2010-90303

A ROADMAP FOR RURAL ELECTRIFICATION IN DEVELOPING COUNTRIES USING

MiViPPs (MICROUTILITY VIRTUAL POWER PLANTS)

Swati PandeyIndian School of Mines

Dhanbad, Jharkhand, India

Manish ChauhanBirla Institute of Technology and Science-Pilani

Zuarinagar, India

ABSTRACT

In this paper we present a road-map for ruralelectrification in developing countries by means ofRenewable Energy based MiViPPs (Microutility virtual power

plants).First and foremost a feasibility and viability analysis ofthe various upcoming and alternative renewable energy options

is performed with respect to rural environmentalconstraints and demands.

Renewable Energy based DDG's (DecentralizedDistributed Generation Units) offer the potential for

affordable, clean electricity with minimal losses and effectivemaintenance and local cost recovery. But Independent DDGprojects are fraught with their own issues mainly stemming

from the unreliable and intermittent nature of the generatedpower and high costs.

We propose an alternative approach to rural electrification

which involves off grid DDG units operated at the local leveltaking advantage of feasible renewable energy technologies,

which can effectively serve rural areas and reduce the urgencyof costly grid extension. In MIVIPP model, a multitude of

decentralized units (renewable energy based units and a non-renewable energy based unit for last mile backup) are centrally

controlled and managed as part of an interconnected network,resulting into a virtual power plant that can be operated as adistributed power plant large enough to reliably serve all the

local electricity demands in a cost effective manner. Finally, bya set of simulation results we establish how an automated

MIVIPP (based on an Intelligent Auto Control System)effectively addresses all the issues pertaining to Dispersed

DDG units by leveraging the scalability achieved by mutuallyaugmenting the supplies from different Renewable Energy

Based DDG units.

Keywords : Renewable Energy , Decentralized Generation ,Rural Electrification , Micro Virtual Power Plants

INTRODUCTION

More than 1.6 billion people, roughly one third of theworlds population, live without access to electricity .Thevast majority of those without electricity live in rural areas.

The World Bank estimates that 67 percent of the ruralpopulation in developing countries is without electricity [1]

.Goes without saying that access to modern, reliable energy isimportant for rural development and improved livelihoods.

Energy is a major tool for poverty alleviation, incomegeneration, health, and other developmental agendas. The

provision of clean electricity to low-income householdsallows for increased opportunities for increased productivityof agricultural and micro-enterprise activities.

The International Energy Agency (IEA) estimates underits reference scenario that developing countries require a

$300 billion annual investment for the electricity sectoralone [2].In rural areas, where as many as four out of five

people lack electricity, conventional grid connected electricityschemes are often not feasible. Grid expansion can be

extremely costly and has been demonstrated numerous timesto be far less cost effective than supplying SHS

[3].Theoretically, renewable energy sources can meet manytimes the worlds energy demand. But even more important is

the result which emerges from various studies that majorityof the villages have sufficient renewable energy potentialto adequately meet the electricity demands of the area [4].

This warrants an alternative approach to rural electrificationwhich involves off grid DDG (Decentralized Distributed

Generation) units operated at the local level taking advantageof locally feasible renewable energy technologies, which can

effectively serve rural areas and reduce the urgency of costlygrid extension.

DDG offers the potential for affordable, clean and reliablelectricity with minimal losses and effective maintenance and

local cost recovery. But Independent DDG projects ar

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fraught with their own issues mainly stemming from theunreliable and intermittent nature of the generated power and

high costs. Moreover, as different rural areas are underdifferent economical and natural circumstances, a more

universally applicable solution needs to be explored. In thispaper we focus on investigation of a MiViPP (Microutility

Virtual Power Plant) Model in providing an efficient, costeffective and sustainable solution to the needs of rural areas

by effectively addressing all the issues pertaining to DDGunits. We have primarily used India as our focus country but

nevertheless the ideas and analysis are extendable andapplicable to rural areas of most developing nations.

RENEWABLE ENERGY BASED DECENTRALIZEDGENERATION

Renewable energy technologies represent some of the mostpromising options available for distributed and decentralized

electrification. The use of renewables can avoid fuel transportor grid interconnection to remote areas, harvest frequently

good resource potentials and tap into rural communityswillingness to pay. The scalability of many renewable

technologies allows for a gradual increase of electricityservices provided in line with the purchasing power of thecommunities.

Table 1 below details the Current Renewable energytechnology stack available for DDG. It should be noted that

the recent ongoing research on new renewable energytechnologies is continuously extending the options stack.

Breakthrough solutions like Wind belts, Flying ElectricGenerators, Ladder mills etc. hold the promise of harnessing

the immense potential of different renewable sources in

unconventional ways in near future. These solutions comparfavorably with the existing options in terms of economi

viability and sustainability.Various studies estimate the demand of a typica

Indian Village between 20-100 KWh [5]. This amount oelectricity can be easily provided for by deploying DDG units

based on locally abundant renewable energy option/s from theabove stack. Moreover, DDG unit also provides for an

increased efficiency when operated in CHP mode. The tablealso provides a comparison of cost/unit of electricity fo

various options. This coupled with the studies regarding thewillingness of rural households to pay for reliable power [6

clearly suggests that DDG units should be economicallyfeasible.

But previous experiences with large scale implementation

of Renewable DDG units have yielded mixed results, primarildue to the uncertain nature of the renewable energy source

For example DDG units based on Wind or Solar Energy aredependent upon their availability which is unreliable an

prone to seasonal variation. Again, the generation oelectricity has to be in sync with demand to ensure a stabl

supply. Small hydro plant and biogas plants also have similalimitations. So it is not possible to rely totally on any on

technology unless and until a backup is available throughelectricity grids or fossil fuel based generator sets. Howeve

an optimized combination of different technologies in a hybrisystem can address this problem.

The concept of hybrid system is known for quite

long time. But connecting the individual units directly to thload, may lead to some problems like-more response time to

Technology Scale and Ownership Pros and cons Cost of supp(Cents/kWh

Kerosene Lighting Households Affordable and flexible but adverse health effects and poor quality light n/a

Grid electrification State distribution company,Cooperative

Cheap or free, clean (locally), low maintenance. Allows for income generating activities. Costly tosupply, high T&D losses,low cost recovery, poor quality, high outages.

1.5-2.5

DDGDieselGenerator

Entrepreneur, coop, firm,NGO, government

Easy maintenance. Continuous energy services (24hrs). Allows for income generating activity.But high fuel costs andemissions.

4-5

Small biomassplant (50100kw)

Firm, coop, Gov. agency orNGO

Allows for income generating activities. Base load operation, continuous operation possible.Carbon neutral though noxious emissions in some cases. Limited resource.

3-4

Microhydro (50 100kw) Firm, coop, gov. agency orNGO

Long life, reliability. Allows for income generating activity. Limited resource availability,seasonal variation insupply.

1.5-3.5

Windhybrid*(50100kw)

Firm, coop, gov. agency orNGO

Reduced fuel cost, flexible load. Relatively cost effective renewable option where strong windresource. Serious locational problems.

4-5

Biofuelpoweredgenerator(biodiesel, 50

100kw)

Firm, coop, gov agency or NGO Allows for income generating activities. Base load operation, continuous operation possible.Carbon neutral. Fuel supply issues.

4-8

Solar PV Panels Households, smallbusinesses

No fuel cost. Selfownership avoids organizational issues relating to larger powerPlants. High upfront cost and battery replacement cost.

12.5+

TABLE 1: THE CURRENT RENEWABLE ENERGY TECHNOLOGY STACK

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load changes, wastage of extra power produced etc. A newemerging concept of virtual power plants, if successfully

deployed, can address these challenges efficiently. In thefollowing sections we will provide a brief overview of Virtual

power plants and how they provide means to overcome theissues that plague independent renewable energy based DDG

units.

MiViPP MODEL

Micro Utility Virtual Power Plants are based on the idea ofmoving from dispersed electricity generation to regulated

distributed electricity generation.MiViPPs aim to tie together a multitude of decentralized

complementary micro-generation power stations into a single,

secure connected system to give a continuous supply ofelectricity as output. This system then acts as a distributed

large power plant which can be centrally controlled, managedand operated. Unlike the hybrid systems they offer the

advantage of connecting all the available power producingunits and thus provide a greater flexibility in terms of fuel use.

This also makes renewable energy resources more reliable andcost effective, without fundamental infrastructure changes andwithout building a new plant.

Figure 1 outlays the basic structure of a MiViPP basedon 3 DDG units. The idea is to model DDG units based on

different Renewable Energy Technologies and connect themusing a Communication Infrastructure to a Central

Coordinator Center (CCC) which caters to different loads ( inthis case load1 , 2 and 3) as in Fig. 2.

Components of a MiViPP

An ideal Virtual Power Plant consists of [8]:

Generation Technologies (on which various DDGunits are individually modeled).

A Central Coordination Center (CCC).

ICT Infrastructure (for real time operational andadministrative communication).

MiViPP under an Intelligent AutoControl System

As envisaged in [9], the design of an automatedMiViPP may be based on 3 levels of automation controls.

The first control level is basic auto control system (BAS);it is applied to control DG output according to its load

signal in order to follow dynamic loads.The second control level is intelligent auto control

system (IAS) which has a central controller to allow

coordination and dispatching power of three DG units suchthat the exchange of power with the superior grid is

minimum.

The third control level is tracking efficiency auto controlsystem (TEAS).It is similar to IAS in terms of utilization of

information exchange. The key role of this system is thelogic algorithm which is able to track optimum tota

efficiency of VPP and still keeping export/import powerminimized even during dynamic loads conditions.

FIGURE 1: MODELING DDG UNITS INTOMIVIPP

Operation of MiviPP

Figure 2 also shows the basic operation of a MiViPP

(based on an IAS) [9]. The distributed generation units arcentrally controlled by control coordination centre (CCCwhich is located right in the centre of DG units as shown. The

loads signals are transmitted to the CCC, and processed bmeans of logic algorithm. Thereafter the signals are dispatcheto each DGC (distributed generation controller), and then the

active power output is produced according to the CCC signal

.All the Load Balancing and Distribution logistics decisionmaking happens at CCC. With the CCC it is able to executboth technical and economical functions, in order to gain

benefit of aggregation distributed generation.Simulation results [10] show that how differen

DDG Controls can help controlling the outputs of differen

DDG units according to the dynamic load.Similarly, different renewable energy based plants can

also be connected as the 3 DG units to form a centralizedVPP.

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FIGURE 2: A TYPICAL MICRO VIRTUAL POWER PLANT CONNECTING 3 DDG UNITS AND CATERINGTO 3 LOADS [11]

MiViPPs IN RURAL CONTEXT

The key to deploying MiViPPs in villages is to use a

multitier architecture which employs the most viable andsustainable renewable energy technologies based DDG units at

the first level and a non-renewable energy based unit (forexample: a Biofuel powered Diesel genset) for last mile

backup. This will ensure maximum utilization of the locally

feasible renewable energy sources as well as a reliable 24*7supply as the base load has been already covered by a

reliable backup source ( which may be again be renewable onon-renewable).

On supply side, MiViPPs would connect small, distributedmicro-generators such as solar and wind energy, biomas

microCHP and small hydro. When there is no sun, win

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power could take the load. When there is no wind, biomass,stored heat and stored energy in pumped water systems could

fill the gap.On the demand side, since all the loads and sources are

connected, consumers can for example be warned of excessiveconsumption to switch off unnecessary loads like unused lights.

And in the middle, the control station predicts the poweravailable and aggregates supplies to produce a reliable output.

Small scale prototype trials, at Australia's scientificresearch organization CSIRO in Newcastle, New South

Wales, and the University of Kassel in Germany havevalidated the expectations to a fairly realistic level and yielded

promising results.

MiViPP- INNOVATION HIGHLIGHTS

Such a system offers unparalleled advantages in terms of:

Potential: Will make Accelerated Rural Electrification

possible. Vast power generation capacities can be rapidlydesigned, built, and deployed.

Technology Neutrality: Is Technology neutral and canbe used across all modes and types of Distributed -Electricity generation and storage assets.

Diesel and natural gas gensetsMicro-turbinesSteam and combustion turbinesWind-diesel hybrid systemsRenewable energy: wind, solar/ photovoltaics , biomass,

micro-hydroFuel Cells

Energy storage: batteries, flywheels, capacitors,compressed air and Hydraulic energy storage.

Futuristic:Provides Plug and Play Support for upcomingInnovative Technologies for Small and Medium Scale

electricity generation. A new technology in market? Noissues! Simply model it as a Distributed Generation Unit

and integrate it into the MiViPP.

Optimization: Local implementation and optimizationacross loads cuts down transmission and distributionlosses by a huge factor, hence more efficient.

Backward compatibility: with the existing National GridStructure. Sustainable Independent operation in the shortrun while allowing the best mix of central and distributed

resources in the long term.

Increased Grid stability: can handle peaking loadseffectively.

Reducing Power theft: Local implementation and

collection ensures reduced power theft. Augers well with theidea of a system ofPREPAID POWER.

Cost efficient: Choosing the most cost efficient optionsfrom the local renewable technology options stackensures economic viability .With the employment o

upcoming breakthrough solutions like wind belts on a largescale; it holds the promise of bringing the cost of rural

electricity production down to .25 Cents/kWh.

Enabling Large scale Renewable EnergyHarnessing: Integration of fossil-fueled resources withrenewable energy technologies.

Handling the intermittent nature of renewablepower supplies: Effectively addresses the issue ofIntermittent Nature of Power Generated from Wind Energy

sources etc., by augmenting it with complementary powerfrom other DG units.

Power on demand: Reliable and On-demand natureof the power generated .Electricity available 365*24*7.

Sustainability: An implementation model based onlicensing MiViPPs to local entrepreneurs will ensuresustainability and have long lasting positive socio

economic and environmental implications.

Environmental Benefits:It promotes the use of BioFuel(Jatropha) and BioMass which actually reduce the CO2

content of the atmosphere by carbon fixation.

FUTURE OF MiViPPs PROTOTYPE TO REALITY

In principle, the MiViPP model is technically aneconomically feasible. But, further research is needed , totranslate the prototype into a practical solution intended fo

widespread deployment .This includes but is not limited to :

Communication Infrastructure: The main issue with thcurrent prototype is the need for a parallel communication

infrastructure for effective coordination and load balancingBut , with advancements in Power line Networking which

enables information transfer over high voltage powetransmission lines , the need and costs associated with a

separate ICT infrastructure can be eliminated.

Economic Analysis: The cost per unit of electricity assumean even greater significance in rural context. Althoughvarious surveys have indicated the willingness of rura

populace to pay up to 5-6 times of the per unit cost of gridelectricity for a reliable supply [ ], it can be readily argued tha

implementation of a MiViPP will involve capital expenditure o

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an order which will overshoot the production costs to such alevel that will render it an unattractive option. This is

especially true for MiViPPs coz they require continuousinformation exchange and monitoring for operational and

administrative purposes.

It must be pointed here that, despite the favorable trends forrenewable energy sources, they are in general perceived to be

high cost options when compared to grid applications, but inreality more often than not it is the favorable policy

frameworks and other public financing advantages that offsetthe true cost of electricity generation in conventional setups.

Moreover, the high capital expenditure in installingrenewable energy systems is often inappropriately compared to

capital expenses of traditional energy systems. In many cases,particularly in remote and inaccessible areas, the low operation

and maintenance costs as well as the inexistent fuel expensesand the increased reliability and the longer expected

useful life of renewable energy technologies, offset initialcapital costs, but this kind of life cycle accounting is not

regularly used as a basis for comparison. Again, theenvironmental costs associated with fossils fuels also need tobe taken into account.

Hence, it is imperative that studies be conducted toevaluate if the balance of capital costs and achievable savings

in primary energy consumption will yield a profit or not. Thisis going to be an important factor in assessing how readily

financing and support will be available for widespreadadoption of this model by local entrepreneurs.

Organization and Regulatory barriers: Even whendemand and economically viable DDG options exist , theprojects have been known to fail and the success of pilot

projects rarely replicated. The barriers include Initial barriers,Organizational barriers and Structural ( Regulatory andPolicy) Barriers. Studies should be conducted to realisticallyassess the success potential of the model in a givenenvironment with reference to the aforementioned types ofbarriers, before deployment. Countries interested in largescale adoption of the model should devise conducive

policies encouraging the same.

CONCLUSION

MiViPPs offer huge potential for accelerated rura

electrification while offering a wide array of distinct

advantages over traditional electricity generation systemsWith further advancements in related technologies andresearch, they can provide a long lasting solution to the

impending energy crisis, by effectively harnessingrenewable energy sources in a sustainable and cost effective

manner. Simulation and field experiments conducted so farbode well with technical and economic feasibility of MiViPPssetting stage for a widespread adoption of the model in near

future.

REFERENCES[1]The welfare impact of rural electrification: A reassessment of

the costs and benefits , World Bank Report (2008)

Available on webhere.

[2] Scaling up energy efficiency-Bridging the energy gap , IEA

Background Paper (2007)Available on webhere.

[3] Selling Solars :Lessons from more than a decade ,

International Finance Corporation Report ( 2007)Available on webhere. Pg. 1

[4] Barnes, D. F. and M. Sen Energy Strategies for Rural India:Evidence from Six States. ESMAP, Washington, DC (2002).Available on webhere

[5] Bharadwaj, A. and R. Tongia.Distributed Power Generation:

Rural India-A Case Study(2003)

[6], [7] James Cust, Anoop Singh and Karsten Neuhoff, Rural

Electrification in India: Economic and Institutional aspects of

Renewables((Dec 2007) Pg. 5-8, Pg. 9 Available on webhere.

[8], [9], [10], [11] Eko Adhi Setiawan, Concept andControllability of Virtual Power Plants (2007) pg. 21,33-38, 46-66, 30 .Available on web here.

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