Smart Grid-Exploring Options

8/3/2019 Smart Grid-Exploring Options

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SmartandJustGrids:OpportunitiesforsubSaharanAfrica

MorganBaziliana,ManuelWelscha1,DeepakDivanb,DavidElzingac,GoranStrbacd,MarkHowellse,Lawrence

Jonesf,AndrewKeaneg,DolfGielenh,V.S.K.MurthyBalijepallii,AbeekuBrewHammondj,andKandeh

Yumkellaa

aUnitedNationsIndustrialDevelopmentOrganization,Vienna,AustriabGeorgiaInstituteofTechnology,Atlanta,USA

cInternationalEnergyAgency,Paris,FrancedImperialCollegeLondon,London,UK

eKTH,RoyalInstituteofTechnology,Stockholm,Sweden

fALSTOMGrid,WashingtonDC,USAgUniversityCollegeDublin,Dublin,IrelandhInternationalRenewableEnergyAgency,AbuDhabi,UAEiIndianInstituteofTechnology,Bombay,India

jKwameNkrumahUniversityofScienceandTechnology,Kumasi,Ghana

1Correspondingauthors:[email protected],[email protected]


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2

Forward

Whilstthereisaclearfocustodayonimprovingtheenergysecurityand

sustainabilityof

established

economies

in

Europe,

Japan

and

North

America,

for

example,aswellasrapidlygrowingeconomiessuchasChina,wemustnotforget

thatenergysecuritymeanssomethingverydifferenttothemanymillionsof

peoplewhohavenoaccesstoelectricityofanykind.

ThispaperSmartandJustGrids:opportunitiesforsubSaharanAfricatacklesthis

veryimportantissue,settingoutthecurrentchallengesandhighlightingtherole

thattherapidlyevolvingtechnologicalandcommercialconceptofsmartgrids

couldplayinensuringareliableandsecureelectricitysupplyfortheregion.

Thepaper

is

essential

reading

for

anyone

interested

in

the

provision

of

energy

in

asustainable,

secure

and

affordablewayindevelopingeconomies,andintherolethatsmartgridscanplayintransformingenergy

supplyinfrastructuresandassociatedbusinessmodels.

EnergyisastrategicresearchpriorityatImperialCollegeLondon,andwearecommittedtodelivering

solutionstotheglobalenergychallenge. Afterreadingthispaper,Ihopeyouaretoo.

ProfessorNigelBrandonFREng

Director,EnergyFuturesLab

ImperialCollegeLondon


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3

Preamble

In2009,anestimated585millionpeoplehadnoaccesstoelectricityinsubSaharanAfrica.Unlikemany

otherregionsoftheworld,undercurrentassumptions,thatfigureisexpectedtorisesignificantlyby2030

toabout652millionanunsustainableandunacceptablesituation.Nationalgovernmentsandregional

organisationshaveidentifiedtheurgentneedforacceleratedelectrificationrates.Respondingtothisneed

willrequireinnovativeandeffectiveenergypolicies.Thewayfuturepowersystemsareplanned,designed,

constructed,financedandoperatedwillhaveasignificantimpactonhoweffectivelytheseaspirationsare

delivered.

Someofthewellknownandemergingconcepts,systemsandtechnologiesofSmartGridsmayofferan

importantcontributiontouniversalaccesstoelectricityinsubSaharanAfrica.WearguethattheseSmart

GridadvancesmayenablesubSaharanAfricancountriestoleapfrogelementsoftraditionalpowersystems

interms

of

both

technology

and

regulation.

This

could

accelerate

national

and

regional

electrification

timeframes,improvingservicedelivery,minimizingcostsandreducingenvironmentalimpact.

WeintroducethenotionofJustGridstoreflecttheneedforpowersystemstocontributetowards

equitableandinclusiveglobal,economicandsocialdevelopment.WhileSmartGridsmayprovidean

efficientmechanismtoaddressthemassiveelectricityinfrastructurebuildingrequirements,JustGridswill

helpguaranteeaccesstomodernenergyserviceswithoutmarginalizingthepoor.Thispaperpresentsthe

conceptofSmartandJustGrids,andconsidersspecificprioritiesthatcouldusefullybeimplementedinsub

SaharanAfricaintheshortterm.Itreviewstheliterature,providesafoundationforpolicydevelopment,

andsuggestsareasforfurther,moredetailedresearch.

Disclaimer:

Theviewsexpressedhereinarethoseoftheauthor(s)anddonotnecessarilyreflecttheviewsoftheirrespective

institutions.Thedesignationsemployedandthepresentationofthematerialinthisdocumentdonotimplythe

expressionofanyopinionwhatsoeverconcerningthelegalstatusofanycountry,territory,cityorareaorofits

authorities,orconcerningthedelimitationofitsfrontiersorboundaries,oritseconomicsystemordegreeof

development.Designationssuchasdeveloped,industrializedanddevelopingareintendedforstatistical

convenienceanddonotnecessarilyexpressajudgmentaboutthestagereachedbyaparticularcountryorareainthe

developmentprocess.Mentionoffirmnamesorcommercialproductsdoesnotconstituteanendorsementbythe

respectiveinstitutions.


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4

Contents

Preamble 3

1. Introduction 5

1.1ElectricityinsubSaharanAfrica 5

1.2Regionalandnationalinitiatives 6

1.3Regionalpowerpoolsandregulatoryauthorities 7

2. ASmartGridapproach 8

2.1Definingtheterm 9

2.2Technologies 9

2.3Costsandbenefits 10

3. SmartandJustGridsforsubSaharanAfrica 13

3.1Redefiningtheconcept 13

3.2Opportunitiesforleapfrogging 16

3.2.1TheICTprecedent 17

3.3Effectsonenergyplanning 17

3.4Effectsonregulationanddesignpractices 19

3.5Effectsonoverallmarketdesign 19

3.6Transmissionanddistributionsystems 20

4. Neartermconsiderations 21

4.1Applying

the

concept

21

4.2Ensuringcoordinatedaction 24

5. Conclusion 25

Acknowledgements 26

References 26


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5

1.IntroductionAccordingtotheInternationalEnergyAgency(IEA)referencescenario,Africasfinalelectricityconsumption

isexpectedtodoublebetween2007and2030from505to1012TWh(IEA2009).Overthesametime

period,theUnitedNations(UN)SecretaryGeneralsAdvisoryGrouponEnergyandClimateChange

(AGECC)hasproposedthattheUNSystemandMemberStatescommittoensuringuniversalaccessto

reliable,affordableandsustainablemodernenergyservicesby2030(AGECC2010).Tomeetthisgoal,

massiveelectricityinfrastructure2developmentwillberequiredintheshort andmediumterm.

TheIEA(2010)estimatesthatachievinguniversalaccesstoelectricityby2030willrequireadditional

powersectorinvestmentofUSD33billionperannumonaverage,muchofwhichisneededinsubSaharan

Africa.Efficiencyimprovements,demandmanagement,optimalgenerationplanning,improvedgrid

operationand

increased

electricity

trade

across

sub

Saharan

African

countries

will

be

essential

for

minimizingthevolumeofinvestmentsneeded(UNEnergyAfrica2008).Weproposethatspecificelements

ofcurrentandemergingSmartGrid3concepts,systemsandtechnologiesmaymakeanimportant

contributiontoimprovingequitableandjustaccesstoelectricityservicesinsubSaharanAfrica(Bazilian,

Sagar,etal.2010).

ThispaperfirstbrieflydescribestheelectricitysectorinsubSaharanAfrica,includingregionalinitiatives,

powerpoolsandregulatoryauthorities(Section1).Section2reviewscurrentSmartGridconcepts,

technologiesandrelatedcostsandbenefits.Section3placestheSmartGridsconceptinthecontextofsub

SaharanAfrican,shiftingthefocustowardsthefacilitationofjustaccess.Itillustratespotential

opportunitiesfor

leapfrogging

elements

of

traditional

power

systems,

the

role

of

energy

planning,

and

effectsonregulationandmarketdesign.Finally,Section4offersthoughtsonhowtoapplyspecific

conceptsintheshortterm,andsuggestsareasforinternationalcooperationtocomplementongoingand

plannedregionalandnationalinitiativesinsubSaharanAfrica.Thispaperrepresentsonlyaninitial

foundationforpolicydesignandfurther,moredetailedresearch.

1.1ELECTRICITYINSUBSAHARANAFRICA

TheenergysectorinsubSaharanAfricaischaracterisedbysignificantchallengesincluding:lowenergy

accessrates,electricitycostsashighasUSD0.50/kWh,insufficientgenerationcapacitytomeetrapidly

risingdemand,andpoorreliabilityofsupply(WB2008).Theestimatedeconomicvalueofpoweroutagesin

Africaamountstoasmuchas2%ofGDP,and616%inlostturnoverforenterprises(WB2009).

In2009,around585millionpeopleinsubSaharanAfrica(about70%ofthepopulation)hadnoaccessto

electricity(IEA2010).Thisfigureisexpectedtorisesignificantlytoabout652millionpeopleby2030.Urban

centresinsubSaharanAfricaarecoveredbyvaryingelectricityqualitylevelsfromnationalandregional

2 We use the term electricity infrastructure or power systems to encompass the entirety of the system, from

generationthroughtransmissionanddistributiontocustomerservicesandassociatedoperations.

3

It

remains

the

case

that

modern

power

system

planning

and

operational

tools

and

systems

currently

employed

in

theOECDalsohavemuchtoofferdevelopingcountries.


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6

grids,butruralcoverageisparticularlyunevenandinadequate(Parshalletal.2009) 80%ofthosewithout

accesstoelectricityliveinruralareas(IEA2010).

In2007,subSaharanAfricaproduced390TWhofelectricity,ofwhichSouthAfricaaloneproducedalmost

70%(AfDB,AU,andUNECA2010)4.Forasenseofscale,with68GW,theentiregenerationcapacityofsub

SaharanAfricaisnomorethanthatofSpain5.Inaddition,subSaharanAfricasaveragegenerationcapacity

wasonlyabout110MWpermillioninhabitantsin2007,rangingfromlessthan15MWpermillion

inhabitantsinGuineaBissauandTogo,to880inSouthAfrica,andupto1,110intheSeychelles(EIA2010).

Bycomparison,thegenerationcapacityintheEuropeanUnionisabout1,650MWpermillioninhabitants,

andintheU.S.itis3,320.

AfricasenergyresourcesarecharacterisedbyoilandgasreservesinNorthandWestAfrica,hydroelectric

potentialinCentralandEasternAfrica,andcoalinSouthernAfrica.HydropowerinsubSaharanAfricahas

anenormousexploitablepotential(WEC2005):itcurrentlyaccountsfor45%ofsubSaharanAfricas

currentelectricity

power

generation

(AfDB

2008)

6

,which

represents

only

afraction

of

the

commercially

exploitablepotential.Inaddition,subSaharanAfricahasabundantsolarpotential(Huldetal.2005),and

biomassisusedextensivelyforhouseholduse,withprospectsforincreasedcommercialexploitationand

electricityproduction(UNIDO2009).

Expandingaccesstonationalelectricitygridsoftenconstitutesthecheapestoptionforprovidingservices.

However,decentralizedpower,oftenbasedonrenewableenergysources,islikelytobeanimportant

componentofanysignificantexpansioninelectricityaccess,especiallyforruralandremoteareas

(Deichmannetal.2010).BothsystemtypescanbenefitfromaspectsofSmartGridtechnologies7.

1.2REGIONAL

AND

NATIONAL

INITIATIVES

Thesignificantneedforacceleratedelectrificationrateshasbeenidentifiedbyregionaleconomic

communitiesandnationalgovernments8.In2007,theAfricaEUEnergyPartnershipwaslaunched(AUCand

EC2008;AUCandEC2007)tosupportregionalenergystrategies,policiesandtargets.Theseregional

4RefertoNiez(2010)formoredetailsonSouthAfricaselectricitysectorandpolicies.

5WithoutSouthAfrica,thiscapacitygoesdownto28GW,25%ofwhichiscurrentlynotavailableforgenerationdue

to,amongstothers,agingplantsandlackofmaintenance(Eberhardetal.2008).

6Selectedelectricitysupplyinformation:WestAfrican(ECOWAS)region:64%thermalpower,31%hydropower(GTZ

2009a).EastAfrican(EAC)region:65%hydropower,28%thermalpower(GTZ2009b).SouthAfrica:94%thermal

power(AfDB,AU,andUNECA2010).7Wedonotmakeajudgementon the issueofone typeassuperior toanother,but ratherconsiderhowmodern

powersystemtoolscanbenefitbothaswellas,insomecases,facilitatetheconnectionofoneintotheother.

8Suchas:TheForumofEnergyMinistersofAfricas(FEMA)PositionPaperonEnergyandtheMDGs(WHOandUNDP

2009);TheSouthernAfricanDevelopmentCommunitys(SADC)ProtocolonEnergy(L.KritzingervanNiekerkandE.

PintoMoreira 2002) and its Regional Indicative Strategic Development Plan (RISDP) (SADC 2003); The Economic

CommunityOfWestAfricanStates (ECOWAS)EnergyProtocol (ECOWAS2003)and itsWhitePaper foraRegional

Policy (ECOWAS 2006); The Common Market for Eastern and Southern Africas (COMESA) Energy Programme

(COMESA 2009a); The East African Communitys (EAC) Regional Strategy on Scalingup Access toModern Energy

Services (EAC 2009) and its Power Master Plan Study (BKS Acres 2005); The Treaty Establishing the Economic

Communityof

Central

African

States

(ECCAS

n.d.);

The

Economic

and

Monetary

Community

of

Central

Africas

(CEMAC)EnergyActionplanwithenergyandelectricityaccessgoals(WHOandUNDP2009).


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7

ambitionsarelargelyunderpinnedbynationalelectrificationpolicies,withmorethan75%ofsubSaharan

countrieshavingdefinedtargetsforelectricityaccess(WHOandUNDP2009).Theimportanceofregional

andnationalelectrificationinitiativesisclearlyunderstoodatthepolicylevel.Thepriorityistotranslate

thisunderstandingintoprovisionofelectricityservicesontheground.

1.3REGIONALPOWERPOOLSANDREGULATORYAUTHORITIES

Inadditiontoregionaleconomiccommunitiesandnationalgovernments,themainactorsforimplementing

electrificationplansaretheregionalpowerpoolsandutilities.Regionalpowerpoolswereestablished

undertheauspicesofRegionalEconomicCommunitiestocreatecompetitivemarketsandimprovedelivery

servicestocustomers(L.MusabaandP.Naidoo2005).TheycomprisetheSouthern,West,EastandCentral

AfricanPowerPools(theSAPP,WAPP,EAPPandCAPP,respectively),allatdifferentstagesofdevelopment

(IEA2008a).

TheSAPPprovidesthemostadvancedexampleofaregionalpowerpool(Gnansounouetal.2007)9insub

SaharanAfrica:

it

was

created

in

1995

as

aresult

of

electricity

trading

in

Southern

Africa,

which

began

in

theearly1960s(SebitosiandOkou2009;SAPP2008).ThecreationoftheWAPPfollowedin1999(ECOWAS

1999;ECOWAS2007),withtheCAPPin2003(L.MusabaandP.Naidoo2005)andtheEAPPin2006

(COMESA2009b)10.Aftertheregionalpowerpoolswerecreated,regionalelectricityregulatorswere

establishedbytheSouthernAfricanDevelopmentCommunity(SADC),theEconomicCommunityofWest

AfricanStates(ECOWAS)andtheCommonMarketforEasternandSouthernAfricaregion(COMESA)11.

Figure1providesanoverviewofthegridextensionsforeseenbytheregionalpowerpoolsandutilities,

withproposedprojectsshowingthescaleofopportunityforoptimizinginfrastructuredesignanddelivery.

It

is

clear

that

sub

Saharan

Africas

national

grids

are

not

well

interconnected

12

.

9EachSAPPmembercountryoperatesitsownnationalutility(Bowen,Sparrow,andYu1999).

10BKSAcres(2005)suggeststheintegrationoftheEAPPintotheSAPPiftheZambiaTanzaniaKenyainterconnection

istobebuild.

11TheRegionalElectricityRegulatorsAssociationofSouthernAfrica(RERA)wasestablishedbySADCin2002to

facilitateharmonisationandeffectivecooperation(RERA2010).In2008,ECOWASestablisheditsRegionalElectricity

RegulationAuthority(ERERA)toregulateelectricityexchangesbetweenstates,andtosupportnationalregulatory

entities(ERERA2009).In2009,energyregulatorsfromCOMESAcountriesformedtheRegionalAssociationofEnergy

Regulatorsfor

Eastern

and

Southern

Africa

(RAERESA)

(COMESA

2009a).

12TypicaltransmissionvoltagesusedinAfricasgridsarementionedinESMAP(2007).


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8

Figure1:PowerpoolsinsubSaharanAfrica[NEPAD2008,asshownin(IEA2008a)]13

2.ASmartGridapproachSmartGridscombinearangeofinnovativetoolsandpracticessupportedbynovelbusinessmodelsand

regulatoryframeworkstohelpensureareliable,secureandefficientsupplyofelectricityservices.While

thereisstrongconsensusonthisoverallobjective,theprecisescopeofthetermSmartGridsisinterpreted

differentlyaccordingtoperspectiveandenvironment14anditcontinuestoevolve.Acommonfunctional

andtechnicaldefinitionhasyettoemerge(Brown,Technol,andRaleigh2008).Forourpurposes,Smart

Gridsis

abroad

concept

that

covers

the

entire

electricity

supply

chain

and

is

characterised

by

the

use

of

technologiestointelligentlyintegratethegeneration,transmissionandconsumptionofelectricity(MEF

2009).Thus,theelementsofSmartGridsarepartofacontinuumofpowersectortoolsandtechnologies.

InthisSectionwedrawfromtheliteraturetohighlightspecificaspectsfromthegeneralSmartGrids

discourseinindustrialisedcountries,someofwhichweexplorefurtherinSection3fortheirshortterm

applicabilitytosubSaharanAfrica.

13 Thedifficulties in accessing the original sourceof this figure are representative for theoverall time and effort

requiredtoaccessregionaldataandinformationonthestatusofelectricityinfrastructureinAfrica.

14For

example,

according

to

J.

Antonoff,

the

U.S.

focuses

on

technologies

while

the

EU

prioritises

policies

and

strategies,assumingthattechnologieswillfollow(Asmus2006).


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2.1DEFININGTHETERM

TheElectricPowerResearchInstitute(EPRI2009)definesSmartGridas,amodernizationoftheelectricity

deliverysystemsoitmonitors,protectsandautomaticallyoptimizestheoperationofitsinterconnected

elementsfromthecentralanddistributedgeneratorthroughthehighvoltagenetworkanddistribution

system,to

industrial

users

and

building

automation

systems,

to

energy

storage

installations

and

to

end

use

consumersandtheirdevices.Zibelman(2007)describesSmartGridsasanevolutionofconventional

gridsinareassuchas:

Transitioningthegridfromamostlyunidirectionalradialdistributionsystemtoamultidirectionalgrid

Convertingfromanelectromechanicalsystemtoaprimarilydigitalone Movingtoaninteractivegridthatactivelyinvolvesendusers(oratleastimprovesdataand

flexibilityofendusers)15

MuchoftheliteraturefocusesonhowSmartGridscanhelpestablishatwowayflowofinformation

betweensupplierandusertoincreasetheefficiencyofnetworkoperations(ETPSmartGrids2006;DOE

2008;Larsen2009;ROA2009;Battaglinietal.2009;Willrich2009;Doranetal.2010).TheEuropean

TechnologyPlatform(ETP)outlinedthenotionofSmartGrids(ETPSmartGrids2010)inasimilarmanner

throughthefollowingelements:optimizinggridoperation,useandinfrastructure;integratinglargescale

intermittentgeneration;informationandcommunicationtechnology;activedistributionnetworks;and

newmarketplaces,usersandenergyefficiency.TheU.S.EnergyIndependenceandSecurityAct(2007)

emphasised:fullcybersecurity,smarttechnologiesandappliances16,timelyconsumerinformationand

control,andstandardsforcommunicationandinteroperability17.Itisthusclearthatwellinformedand

robustregulationisakeyfoundationforallaspectsofSmartGrids.

2.2TECHNOLOGIES

WhileSmartGridsarecomposedofcomplexandintegratedsystems,theyoftenbuildonprovenadvanced

technologies18.Relatedtechnologiescangenerallybedividedintothoselinkedtophysicalpower,data

transportandcontrol,andapplications(Larsen2009).TheNationalEnergyTechnologyLaboratoryhas

identifiedandgroupedmanySmartGridtechnologycomponents(NETL2007;NETL2009)19:

15Conventionalgridsusuallyprovidedetailedcontrolattransmissionlevelandgoodcontrolatdistributionlevel,but

mostlydonotgobeyondthattocontrolelementssuchasdistributedenergysourcesoruserappliances(Balijepalli,

Khaparde,andGupta2009).

16Thisreferstorealtime,automated,interactivetechnologiesthatoptimizetheoperationofappliancesformetering,

communications, and distribution automation, aswell as peakshaving technologies such as electric vehicles and

thermalstorageairconditioning.

17Ina2008surveyfocusingonNorthAmerica,respondentsrankedtheimportanceofSmartGridfeaturesasfollows:

optimisingdistributedassets,incorporatingdistributedenergysources,integratingmassivelydeployedsensorsand

smartmeters,activeconsumerparticipation,selfhealingtechnologies,advancedtools,smartappliancesanddevices

and,leastimportantly,islandingability theabilityofdistributedgenerationtocontinuegeneratingpowerevenwhen

powerfromautilityisabsent(Brown,Technol,andRaleigh2008).18

Additionally,severalpromisingtechnologiesonthehorizonmayalsoformpartoffuturegrids,including:high

temperaturesuperconductingmaterials,advancedelectricstoragesystemssuchasflowbatteriesorflywheels,and

powerelectronics

devices

for

AC

DC

conversion

(DOE

2003).

19AnalternativegroupingofSmartGridtechnologyareascanbefoundin(IEA2010).


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10

Integratedcommunications20,includingBroadbandoverPowerLine(BPL),digitalwirelesscommunicationsorhybridfibrecoax;

Sensingandmeasurement,includingadvancedprotectionsystems,wireless,intelligentsystemsensorsforconditioninformationongridassetsandsystemstatus,andAdvancedMetering

Infrastructure(AMI);

Advancedcomponents,basedonfundamentalresearchanddevelopment,includingUnifiedPowerFlowControllers(UPFC),PluginHybridElectricVehiclesandDirectCurrentmicrogrids;

Advancedcontrolmethods,toensurehighqualitysupply,includingadvancedSupervisoryControlandDataAcquisition(SCADA)systems,loadandshorttermweatherforecasting,anddistributed

intelligentcontrolsystemsforSmartGridstobecomeselfhealing;

Improvedinterfacesanddecisionsupport,toreducesignificantamountsofdatatoactionableinformation,includingonlinetransmissionoptimisationsoftware,enhancedGISmappingsoftware

andsupporttoolstoincreasesituationalawareness.

Manycountries

are

engaged

in

pilot

projects

to

test

such

Smart

Grid

technologies21,

for

example:

the

island

ofJeju,SouthKorea(Baker&McKenzieandAustrade2010;KSGI2010);Yangzhou,China(Xuetal.2010);

Yokohama,Japan(Hosaka2010);Boulder,Colorado,U.S.(Battaglinietal.2009);theTWENTIES(EC2010)

andEcoGridEUprojectsintheEuropeanUnion(DanishTechnologicalInstitute2009;EcoGridEU2010);

andplannedsmartgridapplicationsforMasdarCity,UnitedArabEmirates(Masdar2010)22.

Duetotheirstrongrelianceoncommunicationprotocols,SmartGridsneedlogical(computer)securityas

wellasthephysicalsecurityrequiredbyconventionalgrids,whichpreviouslyconstitutedthemainsecurity

concern(Doranetal.2010).Thiswillprovideobstaclestoallcountries,butespeciallythosewithoutstrong

governancesystemsinplace.

2.3COSTSANDBENEFITS

Thescaleofinvestmentrequiredtoenhancetodaysgridstomeetthedemandsoffuturepowersystemsis

considerable23.BasedontheIEAsNewPoliciesScenario,totalinvestmentintransmissionanddistribution

isexpectedtoreachUSD7.0trillion(inyear2009dollars)fortheperiod20102035(IEA2009)24.According

totheBrattleGroup(2008),theU.S.electricutilityindustryisexpectedtoinvestUSD1.52.0trillionin

infrastructurewithinthenext20years25.Likewise,inEastAfricaalone,billionsofdollarsarerequiredfor

supplyandtransmissioninfrastructureoverthenexttwodecades(BKSAcres2005).

20InteroperabilityofequipmentisakeyrequirementofSmartGrids.

21 India actively supports SmartGriddevelopments through the restructuredacceleratedpowerdevelopmentand

reformsprogramme(RAPDRP)(Balijepalli,Khaparde,andGupta2009).

22ForfurtherinformationonpilotprojectsandpoliciesrefertoDoranetal.(2010).ForaU.S.focusandinformation

on dynamic pricing and pilot design principles refer to Faruqui et al. (2009). The consumer response to smart

appliancescombinedwithpricingsignalswasassessedinaprojectdescribedinChassinD.P.(2010).

23Forcontext,overalltotalcostsforprovidingenergyaccessinsubSaharanAfricaareestimatedtobeapproximately

USD25billionperannum(Bazilian&Nussbaumer,etal.2010).

24BarrierstosmartgridinvestmentsarelistedinMEF(2009).

25For

comparison,

the

total

asset

value

of

the

electricity

sector

in

the

U.S.

is

estimated

to

exceed

USD

800

billion,

with

30%indistributionand10%intransmissionfacilities(DOE2003).


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11

InOECDcountries,asignificantshareoftheseinvestmentsisexpectedtotargettheimplementationand

deploymentofSmartGrids.However,thedetailedmonetaryimplicationsarenotyetfullyunderstood(IEA

2010)andcannotsolelybereducedtoinfrastructureinvestments.SmartGridsredefinetherolesofpower

sectorstakeholders.Developingtherequiredhumanandinstitutionalcapacitiestobestrespondto

stakeholderneedsandresponsibilities26willbeessentialfortheirsuccessfulimplementation.

SmartGridshelptodynamicallybalanceandoptimizegeneration,deliveryassetsandloads.Associatedkey

technicalbenefitsinclude:improvedreliabilityandresilience,costeffectiveintegrationofvariable

resourcesandloads,increasedefficiencyofsystemoperation,andoptimisedutilisationofbothgeneration

andgridprimaryassets27.SmartGridsmaydeliverthesebenefitsatpotentiallyloweroverallcostthan

wouldbepossibleunderbusinessasusualassumptions.Inmoredetail,someofthebenefitsinclude:

Lossreduction:Incurrenttransmissionanddistributionsystems,lossesamounttoapproximately9%ofthe

electricityproduced

worldwide

28

(IEA

2008b;

IEA

2010).

While

Africas

average

losses

of

11%

are

close

to

theglobalaverage(IEA2010),manycountriesinsubSaharanAfricaarecharacterizedbymuchhigher

systemlossesofupto41%,includingnontechnicallosses(UNEnergyAfrica2008).Highertechnicallosses

areduetolessefficientandpoorlymaintainedequipment;highernontechnicallossesareduetotheft(IEA

2003).

SmartGridtechnologiescanhelpminimisetechnicallossesintransmissionbyfacilitatingmoreeffective

reactivepowercompensation29andvoltagecontrol,forexample.Theycanaddressdistributionlosses30

throughadaptivevoltagecontrolatsubstationsandlinedropcompensationtolevelizefeedervoltages

basedonload(EPRI2008).Nontechnicallossessuchaspowertheftcanbepartiallyaddressedwiththe

helpof

smart

metering

infrastructure

(M.

Scott

2009)31,32.

26AdescriptionoftheseneedsandresponsibilitiescanbefoundinETPSmartGrids(2006).

27Basedlargelyonimprovedcommunicationandincreasedinteroperabilityatallgridlevels(FitzPatrickandWollman

2010).

28Rangesvaryfrom,forexample,5%inJapan(IEA2008b)and6% intheU.S.(EIA2010)to26%inIndia(IEA2010).

Distribution losses usually account for the largest share of total power delivery losses (ESMAP 2007). Substation

transformershavebeencitedasthesourceofupto40%oftotalgridlosses(SCE2010).

29Forexample,DCtoAC currentcontrolled inverterscanboth supplyandabsorb reactivepoweronlyanddonot

participateinresonances,ascapacitorsdo(Doranetal.2010).

30IncreasingtheefficiencyofEuropeandistributiontransformersby0.33%wouldhavereducedlossesbymorethan

100TWh in2000andwould result in savingsof200TWh in2030 (IEA2003). Fora senseof scale, theelectricity

generationofAustraliain2009was232TWh(EIA2010).

31Thiswasreportedasoneofthereasonsfor Italys initiativetofitsmartmeters in85%of Italianhomes(M.Scott

2009).TheItalianutilityEnelreportsannualcostsavingsofUSD750millionfromtheirinvestmentsinthesmartmeter

technologies,whichwerecharacterizedbyapaybackperiodof technology,allowing it to recoup the infrastructure

investmentinjustfouryears.

32Additionally,monitoringoftransformerloadingandthirdpartyassessmentsofpotentialmisusewillhelptackle

suchpower

theft,

which

is

often

difficult

to

determine

in

developing

countries

as

it

can

involve

collusion

with

linesmenandmeterreaders.


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12

Peakdemandreduction:Activemanagementofconsumerdemandthroughsmartappliancesand

equipmentwillreducetheneedforspinningreserve(DOE2003)andexpensiveelectricitysupplytosatisfy

peakdemand(GridWiseAlliance2010).Thiscouldbeachievedusingdemandresponseprogrammes

(Medina,Muller,andRoytelman2010).Areductionof1%inpeakdemandcouldresultincostreductionsof

4%,equallingbillionsofdollarsatsystemlevel(Doranetal.2010).

Qualityofsupply:SmartGridscansignificantlycontributetoreducingcostsofgridcongestion,power

outagesandpowerqualitydisturbances33.Theydothisbyincreasingthereliabilityandqualityofsupplyfor

consumerswithhighrequirements34,whileprovidinglessreliableandlowerqualitypoweratreducedcosts

forconsumerswithlowerrequirements(IEA2010).Increasinglyefficientautomatedoperationswillalso

helpaddressandanticipatedisruptions(GridWiseAlliance2010).

Latentnetworkcapacity:Agreaterrolefordemand,andmoresophisticatedassetmanagementand

operation,canhelpenablethereleaseoflatentnetworkcapacitybybuildingonadvancesinequipment

monitoringand

diagnostics

as

well

as

supportive

standards

35

(U.K.

House

of

Commons

2010).

Technologies

suchaspowerflowcontrolcanhaveahugeimpactontheeffectiveutilizationofnetworkcapacityunder

normalandcontingencyconditions.

Inadditiontotechnicalbenefits,potentialbenefitsfortheoveralleconomyinclude:

Climatechangemitigation:DirectandindirectbenefitsofSmartGridsofferthepotentialforyearly

emissionreductionsof0.92.2GtCO2peryearby2050(IEA2010).Directbenefitsincludereducedlosses,

accelerateddeploymentofenergyefficiencyprogrammesanddirectfeedbackonenergyusage.Indirect

benefitsincludegreaterintegrationofrenewableenergyandfacilitationofelectricvehicles36.

Jobcreation:SmartGridsshouldhelptriggernewinvestmentsandcreatenewjobs.McNamara(2009)

estimatesthatSmartGridincentivesworthUSD16billionintheU.S.couldtriggerassociatedprojects

amountingtoUSD64billion.Thiswouldresultinthedirectcreationofapproximately280,000positions

andtheindirectcreationofasubstantiallylargernumberofjobs.

ManyofthesepotentialSmartGridbenefitswouldbevalidforsubSaharanAfrica,yettheconceptand

associatedpoliciesrequirerefinementtooptimisethecost/benefitbalanceinasustainablemanner.

33IntheU.S.,thesecostsareestimatedtobeintherangefromUSD2580billionannually(Willrich2009).

34Thiswouldrequireutilitiestoprioritizethereliabilityofservicesdependentupontargetgroup,suchasemergency

services,financialinstitutions,industries,consumers,andindustry(Doranetal.2010).

35Forexample,throughweatherrelatedoperationalsecuritystandards,whichreleaselatentnetworkcapacityunder

specificweatherconditions(U.K.HouseofCommons2010).

36Shifting

demand,

for

example

through

electric

vehicles,

may

in

fact

increase

CO2

emissions

in

systems

where

base

loadismetwithmoreCO2intensivegenerationthanpeakload(Doranetal.2010).


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13

3.SmartandJustGridsforsubSaharanAfricaEmployingasubsetoftheadvancesinpowersystemsprovidedbySmartGridsmayenablesubSaharan

Africancountriestoleapfrogtraditionalpowersystemstoreachmoreeffectivesolutions.Thiscould

acceleratenationalandregionalelectrificationtimeframes,whileimprovingserviceandminimisingcosts

andenvironmental

impact.

We

introduce

the

term

Just

Grids

to

reflect

the

need

for

power

systems

to

contributetowardsequitableandinclusiveglobaleconomicandsocialdevelopment.Giventhespecific

needsofsubSaharanAfrica,itisobviousthataSmartGridapproachforthisregioncannotsimplybea

copyofpracticesinindustrialisedcountries thestartingpoint,challengesandopportunitiesaretoo

different.WeconsiderhowaredefinedSmartGridconceptmightusefullybeimplementedinsubSaharan

Africa.

3.1REDEFININGTHECONCEPT

WebroadlydefinetheconceptofSmartandJustGridsforsubSaharanAfricaasonethatembracesall

measuresin

support

of

immediate

and

future

integration

of

advanced

two

way

communication,

automationandcontroltechnologiesintolocal,nationalorregionalelectricityinfrastructure.Theconcept

aimstooptimisegridsystemsandtheiroperation,integratehighlevelsofrenewableenergypenetration,

andimprovethereliabilityandefficiencyofelectricitysupply.Inadditiontobeingsmart,sociallyjust37

powersystemsarerequiredinsubSaharanAfricainordertoguaranteeaccesstomodernenergyservices

withoutmarginalizingthepoor38.

Inthefuture,SmartandJustGridsforsubSaharanAfricacouldprovidesimilarfunctionalitytoSmartGrids

inindustrialisedcountriesatfulldeployment,eventhoughtheyarelikelytofollowadifferentpathwayand

timeframe.ThediversityoftheelectrificationstatusinsubSaharanAfrica39,40

meansthatlessonslearned

fromotherregionsmaybedirectlyappliedincertainareas,whiletailoredsolutionswillberequiredfor

others.Constraintssuchas:alackofgoodgovernance,limitedinvestmentcapital,largelyinadequate

infrastructure,andagapinwelltrainedpowersectorpersonnelarelikelystiflinginnovativepracticesthat

couldalreadybeoccurringorganically41.WhilethecostsformassivelyupgradingexistinggridstoSmart

Gridsmaynotbejustifiable,thebusinesscasewheninvestinginnewinfrastructureissignificantlybetter,

offeringsignificantpotentialopportunitiesforsubSaharanAfrica.Itwillthereforebeessentialtoprioritise

37AccordingtoZajda,Majhanovich,andRust(2006),socialjusticegenerallyrefersto,anegalitariansocietythatis

based

on

the

principles

of

equality

and

solidarity,

that

understands

and

values

human

rights,

and

that

recognizes

the

dignityofeveryhumanbeing.38

Similarly,UNEP(2008)callsforajusttransitiontoasustainable,lowcarboneconomytoensurethatsocialaspects

are equitably integrated into economic and environmental considerations, and that emerging opportunities are

adequatelysharedamongstakeholders.

39Widevariations in theenergysectorcanbedemonstratedbypercapitaenergyconsumption,whichvaries from

some20kgoeinBurundito860kgoeinZimbabwe,correlatingwellwithrespectiveGNPpercapita(Karekezi2002).

40ThisdiversityiscomparabletoIndia,whichmayofferasignificantpotentialtolearnfromitsSmartGrid

developments.RefertoBalijepalli,Khaparde,andGupta(2009)andBalijepallietal.(2010)forafocusonIndias

relatedendeavours.41

Forexample,theelectrificationofNewYorkstartedwithThomasEdisonsefforttodevelopasuccessfulbusiness,

coveringthe

complete

system

of

electric

generation,

distribution

and

appliances

(the

light

bulb)

(Brooks,

Milford,

and

Schumacher2004;ConEdison2010).


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14

specificsmartsolutionsbasedonclearlydefinedfunctionalitiesthathelpreducecosts,promoteeconomic

growthandimprovelongtermsustainability.

WenextcharacterisetheapproachtorealisingaSmartandJustGridsystemintoseveralelementsand

attempttoconceiveoftheirapplicationinsubSaharanAfrica.

Smartpolicies:Simplifyingrequirementsforruralelectrificationschemes,definingcommongroundrules

forintegratingtechnologiesandbusinesspractices,balancingcostrecoverymechanismsforutilities,

identifyingbetterwaystosupporteffectivedemandsidemanagement,anddevelopingnewpoliciesto

supporttheintegrationofdistributedgeneration.Allsuchpolicieswouldneedtobeunderpinnedbywell

definedperformancegoalsandtransparentmetricstoensureeffectivemonitoringofanticipatedbenefits.

FocusforsubSaharanAfrica:LeveraginginternationalSmartGridframeworks,legislation,

regulationandstandards,andadjustingthemtothesubSaharanAfricancontext42willbeessential.

Newpolicies

may

need

to

diverge

from

international

precedent,

in

order

to

prioritize

access

to

affordableelectricityservicesforthepoor,respondtorapiddemandgrowthandurbanisation,and

reducetheftofelectricityandutilityassets.Suchpoliciesshouldenableaccessthroughflexible,no

regretelectrificationstrategiesthataccommodateexpansionsofstandalonesystems,miniand

nationalgrids,andthatsupporttheirintegration43.

Smartplanning:Adjustingthegridtolocalcircumstancesanddevelopingdesignprinciplesthatensurean

effectiveinteroperabilityofexistingandnewgrids,leadingtoevensmarternetworksovertime.

FocusforsubSaharanAfrica:Abalancedapproachbetweenregionalgridintegration,nationalgrid

enhancementsand

decentralised

mini

grids

is

required.

While

smart

mini

grids,

such

as

those

describedin(KatiraeiandIravani2006),mayprovideashorttermsolutiontoruralelectrification

needs,theirfutureintegrationintonationalandregionalgridsandviceversaneedstobean

integralconsiderationofpowersystemplanning44.

Smartsystemsandoperations:Guaranteeingthesecurityandqualityofsupplythroughsmartautomation

andcontrolarrangements,buildingonloadmanagementandintegrationofdistributedenergysources,for

mini,nationalandregionalgrids,asshowninRuizet al.(2009).

FocusforsubSaharanAfrica:Countryandlocallyappropriatesupplyqualitystandardswillneedto

bederived.Thesemayinitiallybelessstringentthancurrentpracticesinindustrialisedcountries

andmayvarybyclassofservice.Increasingthegridsloadfactorthroughdemandside

42RefertoSchwartz(2010)forfurtherinformationonpolicysupportrequiredtodeliverSmartGridbenefits.

43Forexample,inremoteareasphotovoltaic(PV)panelscanprovidealimitedand,thusattimes,limitingquantumof

electricityforcustomers.Atpresent,suchcustomersareconsideredelectrified.Inthecaseofmini ornationalgrid

extensionswithbetterpowerquality,suchcustomersmayeithernotbetargetedorthephotovoltaicsystemleft

unused,ascurrentsystemsareoftennotdesignedtointegratesuchhomecircuitsorlocalgrids.44Forexample, theTresAmigas SuperStation inNewMexico,USA,will serve to improve grid reliabilityand solve

voltageand

stability

issues

by

linking

the

three

primary

U.S.

electricity

transmission

grids

through

high

voltage

direct

currentconvertertechnology(Alstom2010).


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15

managementmayalsosignificantlyhelpreducecosts,especiallyforruralelectrificationschemes

(Matly2010).

Smarttechnologies:Deployingprovensmarttechnologies,optimisinginteroperabilitywithemerging

technologies,anddevelopingfuturesolutionstobestaddresselectrificationneeds(Massoudand

Wollenberg2005;Youetal.2002).

FocusforsubSaharanAfrica:Thetechnologydeploymentpathwillvarywidelyatregionaland

countrylevelsduetodiverseneedsandgoalsofdifferentsocietiesandmarkets.Definingthese

technologypathwaysandmarketsandverifyingthemthroughpilotprojectswillbeimportantfirst

steps.

Smartpeople:Buildingstakeholdercapacity45tofacilitatethetransitiontoSmartGrids,tooperatethe

grids,andtoattractandactivelyengagetheprivatesectorandconsumerssothatasmanypeopleas

possibleprofit

from

the

transition.

FocusforsubSaharanAfrica:EducatingconsumersinsubSaharanAfricaaboutefficientelectricity

usewhilstmovingtowardsSmartGridswillbeessential,especiallyforthosewhopreviouslyhadno

access.Trainingtoolsandmaterialsaboutstateoftheartpowersystemswillalsoneedtobe

widelydisseminated.Specificattentionneedstobepaidtothetrainingofoffgridcommunitiesso

theycanmanageandmaintainminigridsystemsinasustainablefashion.

Responsibilityforensuringthatgridsaresmartandjustfallsmainlyongovernmentsandutilitiesasapublic

good.ThefollowingJustGridcharacteristicsareespeciallyrelevanttosubSaharanAfrica:

Justaccess:Ensuringuniversalaccesstoelectricityby:

Encouragingelectricitytobetappedofffromlargergridextensionprojectstolocalcustomersenroute.Connectionsforlargeconsumersareoftentheprimarydriverforgridextensions.Such

extensionsmayofferagreatopportunitytoconnecttheunderservedatthesametime;

Usinggridtechnologiesthatcancopewithfluctuatingsupplyanddemandinruralareasandthusincreasesupplyqualityofsupply,forexamplebybuildingonstrategicloadcontroland

managementinsteadofconventionalloadshedding;

Focusingonacceleratedaccesstokeyelectricityservicesratherthanjustonaccesstoelectricity.Doing

this

in

a

smart

way

may

help

governments

deliver

on

their

development

agendas

more

effectivelyandatlowercost;

Expandingservicedeliveryunderresourceconstraintsbyincreasingtheefficiencyofelectricitysupplyanduse;

Creatingadditionalrevenuesforutilitiesthroughhigherpaymentdiscipline,whichwouldalsoencouragethemtoextendservicestonewcustomers.

Justbillingandsubsidies:Creatingflexibletariffstructuresandpaymentschemestoensureaffordableand

sustainableaccesstoelectricityservices46,by:

45This

includes

policy

makers,

government

agencies,

regulators,

electricity

network

and

service

companies,

traders,

generators,financeinstitutions,technologyproviders,researchersandusers.


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16

RealisingthepotentialofSmartGridstohelplowerprices47ofelectricityservicesbyoptimizingtheutilizationofgridassets,segmentingelectricitymarketsaccordingtoreliabilityandquality

requirements,minimisingtechnicalandnontechnicallossesbypromotingsmartandefficient

appliances,andincreasingcosteffectiveintegrationofrenewableenergyinremoteareas48;

Providingadditionalsupportprogrammestoidentifyandfosterproductiveusesofelectricitytohelpensurethatlowincomeconsumerscanpay;

Allowingfortargetedsubsidiesthroughintegratedsmartbillingtosupportbasicservicessuchasfoodrefrigeration,asopposedtoluxuryservices,liketelevision.

ThereisclearlyavastarrayofSmartGridelementsavailabletosupportourredefinedconcept.Theyare

notallimmediatelyrelevant,however,andsomeareeithernotdevelopedenoughortooexpensivetobe

usefullydeployedinthesubSaharanAfricancontextintheshort tomediumterm49.Incorporating

promisingelementsoffutureSmartandJustGridsinsubSaharanAfricawillrequiremorethanimproved

functionality,ashasbeenobservedwiththeadoptionofotherdisruptiveinnovations(Christensenand

Raynor2003).

A

commercially

successful

business

model

including

pricing,

cost

structure

and

sales

process

iskeyforasuccessfultransition(Anthony2004).

3.2OPPORTUNITIESFORLEAPFROGGING

TheopportunityforSmartandJustGridstoleapfrog50traditionalpowersystemsmaymeanthattheycan

offerevenmoreexcitingopportunitiestodevelopingcountriesthantoindustrialisedones.Whilesome

componentsofSmartGridsareagoodbasisforleapfroggingintheshortterm,otherswillbeessentialfor

settingthepreconditionsrequiredtodayforenablingatransitiontosmarternetworksasthetechnologies

matureinthefuture51.Avoidingtechnologylockinwillbecrucial,astheeconomiclifetimeofelectric

powerequipment

can

be

longer

than

50

years

(DOE

2003;

ESMAP

2007).

Thus,

the

faster

the

transition

to

therequiredenablingenvironments,thebetter.

46Refer toKammen (inpress) forenergypricingpolicies forconsumersandproducersaimingat thepromotionof

renewableenergyandenergyefficiency.

47ThefuturepriceperkWhofelectricitycannotbepredictedwithhighcertaintybecauseelectricitygenerationrelies

on various commodities traded on international markets. Smart Grids, however, can provide tools to enable

consumerstomanageelectricityservicenetcosts.

48 This is especially truewhen diesel power generators are used: renewable energy provides a costcompetitive

alternative,asfueltransportcoststoprovidedieseltoremotelocationsinAfricaaresignificantlyhigherthaninmost

industrialisedcountries(TeravaninthornandRaballand2009).CostsfordieselpowergenerationcanrangefromUSD

0.35perkWhinAfricatomorethanUSD1perkWhforPacificislandsandremotecontinentallocations(UNIDO2010).

Theuseof locally available renewable resources increases supply securityboth inphysical terms and in termsof

pricing.Thisisespeciallyimportantforsupportinggrowthofelectricitydependentsmallandmediumenterprisesand

industrialcustomers.

49Wedohoweverunderlinetheimportanceofavoidingtechnologylockin,toensurethatconditionssettodaywill

allowupgradingtofutureelementswhentheopportunityarises.50

AdefinitionoftechnologyleapfroggingcanbefoundinDavisonetal.(2000).Examplesofleapfroggingin

developingcountriesinthefieldofenergyarementionedinGoldemberg(1998).51

For

example,

latest

conductor

technology

and

controls

could

be

used

for

current

greenfield

developments

to

ensure

longtermflexibilityforintegratingenergysources(IEA2010).


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17

3.2.1THEICTPRECEDENT

Intheshortterm,weexpectleapfroggingtooccurmainlyforthecomponentsbasedoninformationand

communicationtechnologies(ICT),whichformanintegralpartofmanySmartGridsystems.Africahas

alreadyhadsomeexcellentexperiencesinleapfroggingtomoreefficientICTsolutions.Althoughnota

perfectanalogy,

the

information

revolution

52

of

the

mid

1990s

in

sub

Saharan

Africa

linked

to

the

use

of

mobilephonesofferssomeusefullessons,becauseitgavepeopleaccesstomodernformsof

communicationwithoutdetouringviaextensiveconventionaltelephonenetworks.

Africabecametheworldsfastestgrowingcellphonemarket(LaFraniere2005)withgrowthratesinthe

orderof300%perannumincountrieslikeKenyaandCameroon(SebitosiandOkou2009).Within10years,

thenumberofmobilephonesubscriptionsinsubSaharanAfricashotupfromoneper100peopleto33in

2008(WB2010).Theactualnumberofusersisexpectedtobemuchhigherstill,duetopeoplesharingtheir

mobilephones,especiallyinpoorcommunities53(JamesandVersteeg2007;N.Scottetal.2004).

Onereason

for

the

mobile

sectors

great

success

was

the

failure

of

conventional

telecommunication

systemstomeetconsumerdemand,bothintermsofnumberofconnectionsandquality(WilsonIIIand

Wong2003).ThisconstitutesaparalleltothefailureofcurrentelectricitynetworksinsubSaharanAfricato

meettheneedsofmillionsofAfricans.Anotherreasonfortherapiddiffusionofmobilephoneswasthe

lackofredtapeinvolvedinregisteringfortheprepaidservicesthatareusedby90%ofmobilesubscribers

insubSaharanAfrica(JamesandVersteeg2007)54.Prepaidsubscriptionsaddressespeciallytheneedsof

peoplewithlowerorirregularincomes,asnobankaccount,mailaddress,orfixedmonthlyfeearerequired

(Gillwald2005).SmartandJustGridscouldtakeadvantageofICTinfrastructuretoimplementsimilar

paymentschemes.

Inadditiontotechnologicalreasonsforleapfrogging,marketmodelsthataccompaniedthemobilephone

revolutionsuchassharingphonesmayserveasaprecedentforSmartGrids.Othersuccessfactors,which

maynottranslateasseamlesslytoSmartGrids,weretherelativelylowinitialinvestmentsandthequick

installationofredeployableassets,makingassetslessdependentoninstitutionalframeworksandinvestor

protection(Andonova2006).

3.3EFFECTSONENERGYPLANNING

TheconceptofSmartandJustGridsneedstobewellintegratedintonationalandregionalenergy

planning55inordertotakeadvantageofthepossibleopportunitiesfortechnologicalleapfrogging.

Traditionalelectricityplanningtookdemandgrowthasagivenandonlyconsideredsupplysideoptions

52WilsonIIIandWong(2003)definedtheinformationrevolutionasaninstitutionalandpolicyrevolution,highlighting

theimportanceofprivatesectorparticipation,foreigninvestment,competitionanddecentralisation.

53Grameenphonehas6millionsubscriptionsinBangladesh,3%ofwhichareforvillagephones,whicharesharedby

alargenumberofusers,andaccountforonethirdofthetraffic(TheEconomist2006).

54Access rates aremuchhigher than subscription rates, reaching almost 100% for some countries. Thispotential

access isnotdirectlybeneficial for the largemajorityof theAfricanpeople,who still cannotafford topay for the

services(JamesandVersteeg2007).

55Munasinghe(1988)providesframeworkstoguidesubSaharanAfricasgridplanning.Gridplanningrequirements

arementioned

in

Willrich

(2009).

An

ideal

objective

function

is

defined

in

Bonbright,

Danielsen,

and

Kamerschen

(1988)andBowen,Sparrow,andYu(1999).


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18

(Graeber,SpaldingFecher,andGonah2005)56.Thistraditionalpredictandprovide(Strbac2010)

approach57predictingelectricityrequirementsanddesigningthepowersystemsaccordinglyisadopted

insubSaharanmodelssuchastheSAPPexpansionplan(Bowen,Sparrow,andYu1999)andtheEast

AfricanPowerMasterPlanStudy(BKSAcres2005).

Developmentisnolongerconsideredtobesolelylinkedtosteadyenergydemandgrowth(COMESA

2009a).Duetosustainabilityconsiderations,energyplanningincreasinglyconsidersdemandsideoptions

(ShresthaandMarpaung2006),socialandenvironmentalaspects,andassociatedcosts(WB2008;COMESA

2009a).Thecomplexnatureofmodernelectricityplanningrequiresanapproachthatsatisfiestheseoften

conflictinggoals(Swicher,Jannuzzi,andRedlinger1997)aspartofintegratedresourceplanning(IRP)(D'Sa

2005)58.

WithaSmartGridapproach,planningincreasesincomplexityasthegridevolvesintoanactivelayer

betweensupplyanddemand.Planningforsmartgridsbecomesanintricateexerciseduetouncertainties

aboutoff

grid

and

distributed

energy

generation

connections,

as

well

as

uncertainties

about

demand

growth(MEF2009)59.Inadditiontooptimizingelectricitysystemsfromatechnicalperspective,JustGrids

needtobeoptimizedfromadevelopmentperspective.Ensuringservicesformarginalizedandrural

communitieswilloftennotbethemostcosteffectivesolution,sonewconstraints(ordifferentobjective

functions)needtobeaddedtotraditionalleastcostoptimisationmodels.

Therequiredexpansionandadaptationofthetraditionalapproachtoenergyplanningneedstoincludea

moreactiverolefordemand,linkageswithstorage,andtheintegrationofminigridsintoplansforgrid

expansion.AnexampleofthisthoughlimitedispresentedinHowellsetal.(2005)60.Inaddition,

modernenergyplanningneedstobalancesustainabledevelopmentplanscarefullywithregionalenergy

integrationand

national

and

local

Smart

Grids.

The

importance

of

complex

multi

criteria

decision

making

willconsequentlycontinuetoincrease(MEF2009;Hobbs2000).

56Infact,ruralelectrificationinindustrialisedcountriesbasicallyhappenedthroughpubliclysupportedlocalinitiatives

and

independently

of

national

or

regional

planning

(Matly

2010).

57 Several supportive modelling tools, which (to varying degrees) allow for the exploration of demand side

management, are used for this type of analysis (Swicher, Jannuzzi, and Redlinger 1997).WASP, amongst others,

constitutesamodelthatisfrequentlyappliedinAfrica(ADICA2001;Covarrubias1979).ToolssuchasMESSAGE(IAEA

2009)andMARKAL(Alfstad2005)arederivedfromtheHfeleManneapproach(HfeleandManne1975)andoften

usedtomodelamultiregionalapproach.

58DSadefinesintegratedresourceplanning(IRP)forthepowersectorasanapproachthroughwhichtheestimated

requirementforelectricityservices ismetwitha leastcostcombinationofsupplyandenduseefficiencymeasures,

whileincorporatingconcernssuchasequity,environmentalprotection,reliabilityandothercountryspecificgoals.

59Accordingly,advancedsystemlevelmodellingforSmartGridshasbeenidentifiedasoneoftheSmartGridresearch,

developmentanddemonstrationpriorities,accordingtotheIEA(2010).

60Howells

uses

atool

based

on

MESSAGE,

which,

together

with

WASP

and

several

other

tools

(IAEA

2009;

HOMER

2010;ETSAP2010)servestoexaminetheexpansionofaccesstoenergyservices.


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3.4EFFECTSONREGULATIONANDDESIGNPRACTICES

Presentregulationoftenrewardsutilitiesfordeliveringnetworkprimaryassetsratherthanimproving

performancethroughmoresophisticatedmanagementandadvancednetworktechnologies61.Thus,

regulationcanhinderSmartGriddevelopmentsthatdonotfocusoninvestmentsinnetworkassets.

MostcurrentnetworkdesignandoperationpracticescentreonthehistoricdeterministicN1approach

thatwasdevelopedinthelate1950s(Willis2004).Thishasbroadlyhelpeddeliversecureandreliable

electricityservices,alongsidevariousothertraditionallyappliedredundancymeasures.Theseapproaches

can,however,imposemajorbarriersforinnovationinnetworkoperationandimplementationof

technicallyeffectiveandeconomicallyefficientsolutionsthatenhancetheutilizationofgridassets.Yet,the

existingnetworkanditsstandardsarecommonlytakenasgrantedinresearchwork,thusconstrainingthe

applicabilityofdivergingapproaches(KhatorandLeung1997).

WhilethenaturallawsoftransmissionanddistributiondescribedinWillis(2004)stillapply,thefuture

gridsrequired

in

sub

Saharan

Africa

may

offer

fertile

ground

for

aradical

departure

from

such

traditional

regulation,griddesignandoperationpractices,becauseofthesignificantinfrastructurebuilding

requirementsintheregion.Forexample,Divan(2007)demonstratessignificantlyhighernetworkcapacity

whilemeetingN1contingencyconstraintsusingeconomicaldistributedpowerflowcontroldevices.Even

higherutilisationisrealizediftheN1constraintisdropped.Arelaxationofpowerqualityandreliability

standardsbasedontheadvancesofSmartGridsmaythereforeenablesubSaharanAfricatoprofitfrom

theassociatedsignificantcostsavingspotential62.

Futurenetworkregulationanddesignisthereforerequiredtofacilitatetheimplementationofthe

economically

best

solutions.

This

will

occur

by

balancing

asset

and

performance

based

options

63

,

particularlythosethatinvolveresponsivedemand,generationandadvancednetworkmanagement

techniques64.InsubSaharanAfrica,novelregulatoryregimeswillalsoneedtoincentiviseinnovativeways

ofenhancingaccesstothegrid.

3.5EFFECTSONOVERALLMARKETDESIGN

Innovationisrequirednotonlyintechnologiesandregulation,butalsoinmarketmodels.Information

systemsinfrastructurewillhelpfacilitateashifttodistributedcontrol,withdemandresponsebecominga

keyresourcefordeliveringnetworkflexibilityandcontrol.Thiswillrequiresignificantchangesinelectricity

marketdesignprinciples,withamoveawayfromtraditionalsinglesidedcompetitioninlargescale

generation.

61 In subSaharan Africa, laws governing the power sector and at times oversophisticated standards sometimes

originatebackfromcolonialtimes(Matly2010).

62Suchanapproachcouldbesupportedbyarangeofadvancedtechnologiessuchasdynamiclinerating,coordinated

specialprotectionschemes,coordinatedcorrectivepowerflowandvoltagecontroltechniques(potentiallysupported

bywideareamonitoring,protectionandcontroltechnologies),andapplicationofadvanceddecisionmakingtools.63

Balijepalli, Khaparde, and Gupta (2009) underline the need for open, performancebased standards to ensure

modularity

and

interoperability.

64AnoverviewofhowstandardscansupportorhamperSmartGridsdevelopmentsisprovidedinEPRI(2009).


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20

Ultimately,acosteffectivesystemrequiresallplayerstointeractcompetitively,optimisingdemandand

supply(Strbac,Ramsay,andMoreno2009).Thiswouldrequireacompetitive,usercentreddistributed

energymarketplacebasedonrealtimepricesdesignedtointegratewholesaleandretailenergymarkets.

Whilesuchmarketsarestillmostlyconceptual,intime,itwillbeimportanttounderstandandintegrate

demandintosystemdesignandoperationforsubSaharanAfrica,supportedbyusercentricmarket

models.Thisapproachwillbecriticalforenhancingaccesstoelectricityservices,especiallygiventhe

magnitudeoftheeconomicvalueofassociatedbenefitssuchasenhancedassetutilizationandimproved

operationalefficiency.

3.6TRANSMISSIONANDDISTRIBUTIONSYSTEMS

Crucialbenefitsofelectricitygridsresultfromadiversificationofbothdemandandsupply. National

distributionnetworksofseveralthousandhouseholdsareusuallylargeenoughtoprofitfromdemand

diversityandassociatedsignificantsavingsinsupplycapacityrequirements(Strbac,Jenkins,andGreen

2006)65.

Largertransmissionnetworksarerequiredtoprofitfromdiversificationofsupply(BazilianandRoques

2008)byexploitingregionalenergyresourcesandinfrastructure66.Transmissionexpansionscan

significantlyenhancetheabilityofthesystemtominimisefluctuationsindemandandsupply,increasethe

availabilityofbackupcapacity(ECF2010),andminimisetherequiredspinningreserve.Thisisespecially

truewhenaccommodatingincreasedlevelsofintermittentrenewablegeneration.

CriticalvoiceslikeSebitosi&Okou(2009)howeverregardgrandinfrastructureplanstolinkuptheAfrican

continents

power

grids

as

obsolete

in

the

age

of

Smart

Grids.

Some

aspects

of

this

view

are

mirrored

in

the

U.S.byCavanagh(2008)67andFoxPenner(2005)68,whoemphasisetheimportanceoffocusingonregional

andsubregionalgrids.However,asanexample,highcapacitytransmissioncorridorsarestillexpectedto

formthebackboneoftheU.S.gridin2030(DOE2003).

Sebitosi&Okou(2009)furthersuspectthatsupergridswouldlargelyservetoextractuntappednatural

resourcesfromthelessdevelopedtothemoreindustrializedmembers.Anexampletheycitecomprises

highvoltagedirectcurrent(HVDC)linestointegraterenewableenergyfromNorthAfricancountriesinto

theEuropeanpowersystem(Battaglinietal.2009;DESERTECFoundation2009).Suchplansseemtobethe

mainfocusofcurrentdiscussionsonmoderngridinvestmentsinAfrica.Itremainstobeseentowhat

extentthe

underserved

in

Africa

will

profit

from

such

initiatives.

65Thecapacityofanelectricitysystemsupplyingseveralthousandhouseholdsisonlyabout10%ofthetotalcapacity

thatwouldberequiredifeachindividualhouseholdweretobeselfsufficientandprovideitsowngenerationcapacity.

Afurtherincreaseinthenumberofhouseholdshoweveronlyresultsinminimalsavings.66

FortheSouthernAfricanregion,Graeber(2005)identifiedsavingsof$24billionover20years,equaling5%oftotal

system costs,when optimizing generation and transmission investments at a regional level. 60% of this savings

potentialcanbeattributedtoloweroperationalcosts.

67CavanaghrecommendsthatestablishingasingleinterconnectednationalgridintheU.S.shouldbelessofagoal

thenupgradingthecurrentthreegiantregionalgrids.

68Fox

Penner

suggests

subdividing

regional

grids

into

smaller

grids

building

on

direct

current

lines

to

avoid

cascading

failures.


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21

4.NeartermconsiderationsInlinewithfindingsfromtheETPSmartGrids(2006),implementationofSmartGridsforsubSaharanAfrica

will,interalia,require:atoolboxofproventechnicalsolutions,harmonisedregulatoryandcommercial

frameworks,sharedtechnicalstandardsandprotocols,andsupportiveICTsystems.Thesuccessful

interfacingof

new

and

old

designs

will

be

especially

important

in

view

of

future

proofing

current

grid

infrastructureprojectsinacosteffectiveway,toensurecompatibilitywithfutureplanstoupgradecurrent

systemstoSmartGrids.Mostimportantly,SmartGridsrequirethedevelopmentofhumancapacityto

implementandmanagethecomplextechnologiesinvolvedandtheenablingenvironmentstoovercome

barriers69,triggerrequiredinvestments,andultimatelydemonstratethebenefitsofSmartandJustGrids.

AccordingtotheIEA(2010),technicalcapacityhastobedevelopedfromarelativelylowlevelindeveloping

countries,lendingfurtherprioritisationtocapacitybuildinginitiatives.

4.1APPLYINGTHECONCEPT

Particularelements

of

Smart

and

Just

Grids

will

offer

tangible

and

direct

benefits

in

the

short

term.

Their

applicationwillservetotestandenhancetheconceptinthesubSaharancontext,andhelpusunderstand

howtoexpanditsscopeinthefuture.Theseelementsinclude:

Transmissionandsubstationdesign:Especiallyforlongertransmissionlines,thescaleoftechnicallosses

canbecomeconsiderable70.SmartGridscanhelpreducesuchlosses,forexamplebyimprovedpowerlines

andtransformers,aswellasimplementingregularmaintenanceschemes(Niez2010).Widearea

monitoringandcontrol71cansupporttheaccurateinformationrequiredforrealtimedecisionmakingto

respondbettertodisturbanceswithinthesystem(SCE2010).Thiswillenhanceutilizationofprimarygrid

infrastructureandcontributetoamoreefficientsystemoperation.Someoftherequiredadvanced

transmissiontechnologies72maytargetthemoredevelopedexistinggridsinsubSaharanAfrica,andmay

bedisproportionateinareaswithlimitedgridcoverage.

Distributionsystemdesign:Distributionautomationtechnologiescanhelpimprovepowersystemsby

extendingintelligentcontrol(SCE2010).Forexample,smartsensorsandflexibleandintelligentswitches

andinterruptersatcriticalpointsondistributioncircuitswillminimizetheextentofoutagesandincrease

thespeedofrestoration,whilekeepingcostincreasesataminimum.Smartdistributiontechnologies

allowingforincreasedlevelsofdistributedgenerationwillbeespeciallyimportantforaddressingrural

electrificationneedsandminimiseconnectioncosts.Theplanninganddesignofthesenetworkswillrequire

69BarriersfordevelopingSmartGridsinSouthAfricacanbefoundinBipath(2010).Challenges,driversandpriorities

indevelopingcountriesarementionedinBhargava(2010).

70Forasenseofscale,SebitosiandOkou(2009)notethat,theestimatedamountofpowerthat is lostduringthe

delivery of 2000MW from Cahora Bassa through the 1500 km line to South Africa is nearly equal to the entire

consumptioncapacityofMozambique,thehostgeneratingcountry.

71Thisrepresentsashiftfromtheapplicationoftraditional localbasedcontrol inexistingpowersystems.However,

gridcontrolanddesigntechniquesthatincorporatesuchcoordinatedcontrolareyettobeestablished.

72Inadditiontosynchrophasors,wideareamonitoringandcontrolcanbuildonintelligentelectronicdevicessuchas

protectiverelays,programmablecontrollersandstandalonedigitalfaultrecorders.Examplesofapplicationsinclude

coordinated VoltAmpere Reactive (VAR) control solutions (Yuan et al. 2010) and adaptive system islanding and

resynchronisation(SCE

2010).

Further,

deploying

low

sag,

high

temperature

conductors

and

dynamic

line

rating

can

significantlyincreasetheelectriccurrentcarryingcapacity.


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22

fullhorizonplanning,i.e.a20yearplusperiod.Thedevelopmentofthesegridswillbeatypicalbutexisting

workondistributionplanningmayprovideacanvasfromwhichtowork(FletcherandStrunz2007).

Nontechnicallossesindevelopingcountriescanoftenbeattributedtouncollecteddebt,tamperedmeters

andinconsistenciesinbillingduetocorruptmeterreadersorillegalconnections(Niez2010;Zheng2007).

Powertheftoftencontributessignificantlytooverallsystemlossesindevelopingcountries73,reducingthe

economicperformanceofutilities.Highvoltagedistributionlinescanhelppreventillegalconnectionsand

improvepowerqualityandreliability(Niez2010).Smartmeteringinfrastructurewithanindependent

transformerloadingbasedvalidationprocesscanhelpreducetheftfurther.Additionally,meterbased

tariffsincentiviseanefficientuseofelectricity,whichcanresultinconsiderableloadreduction74.

Smartmini andmicrogrids:Mini,andespeciallymicro,gridswithhighsharesofrenewableenergyare

generallycomplextoimplement,primarilybecauseoffluctuatinggenerationandalowloadfactor75.The

taskofmaintainingadequatepowerqualitybecomesachallenge,forexampleduetospikesassociated

withthe

starting

current

of

motor

loads

(Makarand,

Mukul,

and

Banerjee

2010)

or

the

need

to

provide

someformofbackuppower.Smartcomponentscanhelpcushionsucheffectsandbetterbalancethe

overallsystem,throughintegratingnewdemandsidemanagementoptions.Costsofsuchsystemsmaybe

furthercutthroughtheimplementationof(DC)microgrids,especiallywhencombinedwithphotovoltaic

generation.WhilelossescanbereducedthroughsavinglayersofDC/ACpowerconversion,themore

expensiveprotectivedevicesrequiredforfaultmanagementandcontrol,suchascoordinatedpower

converters,addcomplexityandoutweighsomeofthepotentialsavings.

Demandsidemanagement:Demandsidemanagementoptionsforlarge76consumerloads,likeload

controlswitchesatindustrialorinstitutionalfacilities,cancontributetooptimisingthequalityofenergy

servicesand

reducing

load

shedding77.

This

usually

affects

the

poorest

electricity

consumers

the

most.

Radiocontrolledinterruptibleinstitutionalwaterheatersorwaterpumpingsystemsconstitutejusttwo

examplesforsuchloadcontrol.Atthehouseholdlevel,smartappliancescouldalsocontribute.For

example,smartrefrigeratorsthatholdenoughthermalstoragetowithstandinterruptionsoravoidpower

useduringpeakloadscouldbedeployed.SmartGridswouldfurtherallowtheprioritisationofconsumer

loadsaccordingtopublicimportance,guaranteeingahighersecurityofsupplyforbuildingssuchas

hospitalsratherthanforenterprisesorhouseholds78.AsshowninJazayerietal.(2005),dueconsideration

73 Inaddition topureelectricity theft,cable theftmayconstituteasignificantproblem. Invariousmunicipalities in

SouthAfrica,

all

day

street

lighting

is

used

as

an

early

warning

system,

despite

generation

constraints

(Niez

2010).

74InaminigridinNicaragua,theabandonmentofaflatratetariffaftertheinstallationofmetershelpedreducethe

overallelectricity loadby28%byencouragingamoreconscioususeofelectricity,enablingtheminigridtooperate

forlonger(CasillasandKammen).

75Energyconservationsupplycurvesformeasuresregardinggeneration,meteringandenergyefficiencymeasuresare

providedinCasillasandKammen(inpress)foraminigridinNicaragua.

76Largecomparedwiththetotalcapacityofthegrid.

77 In the Indiancontext,demandsidemanagementhasalsobeenproposed toensureahigherqualityofelectricity

supplyforcustomerswhoregularlypaytheirbills,andlessgoodqualityforthosewhodonot(Zheng2007).

78

This

represents

a

shift

from

traditional

preventive

control

philosophy

to

corrective,

just

in

time,

control

approach.

Benefitsincludeenhancedutilizationofgridassetsandimprovedefficiency.Supportivenewtechniquesandtoolsfor

systemoperationanddesignneed tobedevelopedandapplied.Forexample,at industrialand institutional levels,


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23

ofpriceandsystemsecurityisessential.Aspartofsuchloadmanagement,aJustGridcouldensurereliable

andlowcostaccessforthepoorduringoffpeakhours,foractivitiessuchascooking,whilecurtailedaccess

wouldbeprovidedduringtimesofhigherdemand79.Thiscouldalsoencouragepeopletoadoptenergy

efficientpracticesforpeaktimes,eitherbecauseofhighertariffsordependencyonbatteries80.

Localchargingstations:Whileruralelectrificationisapriorityinmanycountries,itcannotbeentirely

equatedwithelectricityaccessforthepoor,asmillionsofpeoplelivenearthegridbutcannotafforda

connection(Meier2001;WB1995).Forthesepeople,chargingstationsensureaminimumlevelofaccess

toelectricityservices,forexample,forcharginglanternsorbatteriestopowertheirradioorTV.Elaborating

asuccessfulbusinessmodel81forbatterychargingservicesatthesestationsmayfurthercontributeto

increasedpowerqualityandreliabilityinminigrids,bycompensatingpowerflowandvoltagefluctuations.

Chargingstationscouldfurtherminimiseoreliminatetherunningofbackupdieselgeneratorsandspawn

localbusinessesandjobs82.Anotherpossibilitywouldbetheintroductionofelectricbicyclesfortaxi

services;thesecouldbechargedatstationsduringoffpeakhours,combiningincomegenerationwith

demandside

management

83

.

Billingschemes:AsmanySmartGridcomponentsbuildonICT,theymightprofitfrompiggybackingon

futuretelecomserviceexpansions,suchastheprovisionofelectricityconsumptioninformationviamobile

phones.Chargingprepaidconsumptioncredits84viamobilephonesusingscratchcardsorcomparable

devicesmayhelpaddressthespecificneedsofthepoorandreduceadministrativecostsrelatedtometer

readingsandbilling85.Abasictimeofusepricingschemeathouseholdlevelmayeasilybeintroducedin

subSaharanAfricatohelpbalancedemand86.Conceivably,tariffsmayevenbedelineatedbyserviceto

allowfortargetedsubsidies.Forenergyintensiveindustries,realtimepricingmaybeconsidered.In

addition,onbillfinancing87ofenergyefficientappliances88maybeanimportanttooltohelpconsumers

overcomehigh

upfront

costs.

underfrequency protective relays for heating, cooling and motor loads can provide significant support for grid

operation.

79Suchdemandwouldcomefromloadsthatrequirehigherreliability,suchasindustrialandcommercialusage.

80Thishasbeenobservedwithwatersupplyschemes,wherecommunitiesadjusttheirbehaviourtoaccessacritical

buteconomicalresource.Peoplecarryoutwaterintensivefunctionssuchascleaningclothesduringhoursofsupply,

andreserveactivitiesthatneedlesswater,suchascooking,fortimeswithnosupply.

81Thismodelwouldneedtocoverthelogisticsofbatteryownership,managementandcharging.

82

For

example,

charging

services,

mills

for

grinding

grain,

IT

services

or

community

meeting

places.

83Due tostrongpolicysupport,Chinahas four timesmoreelectricbicycles thancarson its roads,with21million

bicyclesboughtin2008alone,atpricestypicallybelowUSD300(Ramzy2009).Bycontrollingtheirchargingtimethey

couldbecomeoneelementofaSmartGrid.

84Botswanaandother countrieswerealreadyusingprepaidmeters in the1980s (McDonald2009).Refer toNiez

(2010) for information on the introduction of prepaid electricitymeters under SouthAfricas IntegratedNational

ElectrificationProgramme.

85Forcustomerswithatelecomcontract,theelectricitybillmayaswellbechargedtothemonthlytelephonebill.

86 As already outlined as a demand sidemanagement option, thismay include special schemeswhere lowcost

electricityisprovidedatoffpeakhourstoensureaffordableaccessforthepoor,butwithlowerreliabilityduringthe

rest

of

the

day.

Loads

requiring

higher

reliability

would

need

to

pay

a

higher

tariff

for

this

privilege.

87Referto(Kammen)forfurtherinformationononbillfinancing.


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24

Informationsystemsarchitecture:Smartdatamanagementtoolswillhelputilitiesdistilrelevant

informationinamanageableandunderstandableformat.Diagnosticsoftwarewillfurtherhelpmonitorthe

healthofgridassets,predictproblemsinpowerdistribution,andinitiatecorrectiveaction.Therequired

architecturemustensureinteroperabilityandenableasmoothtransitionfromexistingtofuturepower

systems(SCE2010).Specialattentiontosecurityissueswillberequiredincountrieswithlimitedrobust

governanceregimes.Userfriendlyinterfaces,suchascellphonebillingandtransparentmetering,willbe

equallyimportanttoengagecustomerssuccessfully.

4.2ENSURINGCOORDINATEDACTION

RegardlessofwhichspecificaspectsofSmartandJustGridsforsubSaharanAfricaarepursued,

internationalcooperationwillbeessential89.Suchcooperationwouldfurtherbenefitfromtheclose

involvementoforganisationssuchasexistingSmartGridalliancesinindustrialisedcountries(e.g.ETPSmart

Grids,GridWiseAlliance)andnascentbodiesliketheInternationalSmartGridActionNetworkortheGlobal

SmartGrid

Federation,

both

announced

at

the

First

Clean

Energy

Ministerial

(2010).

SouthSouth

CooperationshouldformanintegralelementoftherequiredinternationalactionasmanysubSaharan

Africancountriesfacesimilarchallengestothedevelopingandemergingeconomiesofcountriessuchas

India90.

Morespecifically,SmartandJustGridsforsubSaharanAfricacanprofitfrominternationalcooperationin

thefollowingareas:

Analysisofpotentialandroadmaps:IdentifysubSaharanAfricaspotentialtoprofitfromSmartandJust

Grids,

including

an

assessment

of

associated

costs

and

benefits.

Develop

a

road

map

up

to

2030

including

identificationoftechnologysolutionsthatcanberapidlyandcosteffectivelydeployedintheshortterm.

ThisroadmapcouldbealignedwithsimilareffortsbytheIEA.

Countryassessments:Provideinternationalsupportforpreliminaryassessmentofthepowersectorsand

theirneeds,focusingonpolicy,regulatory,legal,institutionalandcommercialframeworks,energyplanning

tools,transmissionanddistributionsystemdesign,operationalmodalities,technologiesandtechnical

standards.Basedonthisassessment,developcountryspecificbusinessanddevelopmentcasesforSmart

andJustGrids,withclearlydefinedtechnologytransferroutes.Prioritiseinvestmentsinspecificsmart

elementswithclearlydefinedmechanismsforreturnoninvestment91.

Powersystemdesign:Developanddeployinternationallysupportedopensourceorwidelyavailable

modellingtoolsandcapacitiesforpowersystemdesignandoperation.Adjustpowersystemdesigntothe

88 Inaminigrid inNicaragua, the introductionofcompact fluorescent lightshelped tocutdemandby17%,which

meanttheminigridcouldoperateforlonger(CasillasandKammen).

89 According to Bipath (2010), international cooperation for SmartGrids is expected to focus on standardisation,

cybersecurityandinteroperability.

90Balijepalli,Khaparde,andGupta(2009)reportthedetailedrequirementsandneedsforSmartGridsinIndia.

91While

we

emphasise

the

importance

of

business

case

development,

it

needs

to

be

recognised

that

many

historical

infrastructureprojectswerebasedonhomegrownnationbuildinginitiatives.


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25

specificcontext:simpleplanningtoolscanaddressurgentelectrificationneedsin,forexample,post

conflictareas;moresophisticatedtoolsarerequiredtoupgradeextensiveexistingpowersystemstoSmart

andJustGrids.Itiscriticallyimportantthatthearchitecturedevelopedenablesfuturesystemupgrades

withoutaddingsignificantcostsduringearlyimplementationstages.

Pilotprojects:Implementjointpilotprojectsbasedonidentifiedfasttracksolutions.Asthedeploymentof

smartelectricitysystemsredefinestherolesofstakeholders,thesepilotprojectswillhelpunderstand

stakeholderbehaviorwithintheseredefinedrolesandtestthemarketsbeforeengaginginmassive

rollouts.Remoteruralelectrificationschemeswithhigherpenetrationratesofrenewableenergysources

wouldserveasaparticularlygoodstartingpointfortestingtheconceptofSmartandJust(mini)Grids.

Enablingenvironments:Helppromotesupportivepolicy,regulatory,institutional,legalandcommercial

frameworks,includingtherequiredcodesandstandards.SubSaharanAfricaespeciallycanprofitfrom

ongoingeffortsinindustrialisedcountriestoadjustrelatednetworkstandards.Additionally,legislation

precedentscan

be

employed

to

help

reduce

electricity

theft

92

.Further,

international

design

competitions

supportedbyfinancialrewardcouldsupportbusinesscasedevelopmentbyhelpingtohighlightchallenges

anddevelopinnovativesolutions.

Capacitybuildinginitiatives:Basedonskillsassessments,trainkeystakeholderssuchasMinistriesin

chargeofenergyissues,powerpoolrepresentatives,energyregulatorsandnationalsystemoperatorson

theSmartandJustGridconcept.DevelopingtheassetmanagementcapacitiesofAfricanutilitiesand

energyentrepreneurstomaintaintechnicalsystemsandequipmentwillbevitalforensuringthe

sustainabledeploymentofSmartandJustGrids.Concertedinternationaleffortstodevelopcentresof

competencyinpowerengineeringforselectedsubSaharanAfricancountrieswillhelpbuildupthe

requiredregional

and

national

expertise.

Forasuccessfultransitiontowardssmartandjustenergysystems,suchinternationalcooperationwillneed

tobecomplementedbycloseengagementwithregionalandnationalstakeholders,frompolicyand

institutionallevelstogenerators,consumers,powerequipmentmanufacturersandICTproviders.While

SmartandJustGridsrequirestrongpubliccommitment,includingfunding,theprivatesectorasthemain

engineofeconomicgrowthhasanessentialroleinsupportingrelatedinitiativesinsubSaharanAfrica.

Creatingreliableinvestmentenvironmentswillhelptoengageallkeyplayerseffectively.

5.ConclusionSubSaharanAfricaischaracterisedbysignificantelectricityrelatedchallengesintermsofresources,

infrastructure,costandsustainability.Anumberofregionalandnationalenergystrategies,policiesand

targetsaimtoaddressthesechallengesandaccelerateelectrificationrates,althoughtheyhaveyetto

translateintosignificantimplementationmeasures.Findingwaystoenhancefuturepowersystems

representsakeytaskforgovernments,regionalpowerpoolsandutilities.Someapproachesmayenable

92Chinasmajor reformof the ruralpowermanagement system in1988, combinedwith ruralgridenhancements,

helpedreducelossesinlowvoltagegridsby3045%andconsequentlyloweredelectricityprices.RefertoNiez(2010)

forfurther

information.

For

another

example,

refer

to

Indias

2003

Electricity

Act,

which

heavily

penalizes

electricity

theft(Niez2010).


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26

subSaharanAfricatoleapfrogtraditionalpowersystemspracticesandmovetoSmartGridelementsinthe

shortterm.Otherswillrequirepreconditionstobeestablishedinordertoavoidtechnologylockinand

ensurecompatibilitywithnewconceptsandtechnologiesinthefuture.

WehavedescribedanaugmentationoftheconceptofSmartGridandpresentedabroaddefinitionof

SmartandJustGridsforsubSaharanAfrica,embracingtheneedtoguaranteeinclusiveaccesstomodern

energyserviceswithoutmarginalizingthepoor.Thisrefinedconceptwillneedtobecarefullyintegrated

intonationalandregionalenergyplanning,regulationandmarkets,inordertobalancethecostsand

benefitsofregionalgridintegrationwiththoseofnationalandlocalSmartGrids.

WehavefurtheridentifiedsomeelementsofSmartandJustGridsthatoffertangibleanddirectbenefitsin

theshortterm.ExploringtheconceptofSmartandJustGridsbyimplementingtheseelementsand

suggestedareasforinternationalcooperationwillbeessentialforrealisingsignificantfuturebenefits.

Thesewillgowellbeyondimprovedvoltageandfrequencycontrol.

Fromaneconomicperspective,reliableenergysupplythroughSmartandJustGridswillhelpfoster

economicgrowth.Fromanenvironmentalperspective,SmartGridswillsupportandaccelerateacost

effectivetransitiontolowcarboneconomiesbyloweringgreenhousegasemissions.Finallyandmost

importantly,fromasocietalperspective,accesstoelectricityisaprerequisitetowardsdevelopmentasitis

linkedtomanyaspectsofthedevelopmentagenda,includingaccesstobetterhealthservices,education

andsecurity.

ThemassiveelectricityinfrastructurerequirementsinsubSaharanAfricaofferauniqueopportunityto

learnfromgriddevelopmentsinindustrialisedcountriesandmoveforwardwithoutnecessarilyrepeating

allprevious

development

stages.

We

should

take

advantage

of

this

significant

opportunity

to

ensure

that

subSaharanAfricasfuturegridisdesignedinawaythatisbothsmartandjust.

Acknowledgements

Wewouldliketoacknowledgethesupportof:LawrenceMusaba(SAPP),SperoMensah(AREVA),Giuseppe

DeSimone,ClaudiaLinkeHeep,AloisMhlanga,PradeepMonga,PatrickNussbaumerandMarina

Ploutakhina(UNIDO),FatihBirol(IEA),GuidoBartels(IBM),IainMacGillandHughOuthred(UNSW),Carol

Brooks(UM),JohnShine,FergalMcnamaraandPadraigMcManus(ESB),EamonRyanandSaraWhite

(DCENR),MarkOMalley(UCD),S.A.Khapardeh(IIT,Bombay),MichaelLiebreich(BNEF),andDanKammen

(WorldBank).

*************


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Documents

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