SOLAR AND WIND

BUSINESS MODELS FOR RENEWABLE ENERGY IN EIP

Timon Herzog, Grips Energy AG

UNIDO Workshop, Friday, 9th November 2018 - Ho Chi Minh City, Vietnam

© Grips Energy AG – www.grips-energy.com

BUSINESS MODEL & FOCUS

CAPEX-FREE | RENEWABLE | ENERGY & KNOWLEGE

Geographical focus:

• Sub-Saharan Africa

(so far branches in Zambia and Ghana)

• Southeast Asia

(key focus: Cambodia, Laos and Vietnam)

Renewable energy as a service:

• GRIPS supplies energy on a “pay-

per-use” basis

• For larger commercial and industrial

off-takers

• GRIPS finances, owns & operates

all required assets (CAPEX-free for

GRIPS customers)

Customer

$$$ $$$

Financing Financing Returns Returns

TYPICAL CONTRACTING STRUCTURE

Key Customer Benefits

• Economic optimization

• Reliable energy supply

• Strong improvement of ecological footprint

>> Contract models: PPA, lease, lease to own and rental

Competitive Renewable Energy Beyond Fossil Fuels and Public Grids

Contractor Off-taker

Global continuously

operating off-grid

diesel generators:

1.250 Mio t CO2 = Japan

2013

> 240 GW (> 5-10% growth p.a.)

investment volume

= 2.4 GW

= USD 3-8 billion

ANNUAL SAVINGS considering 2.4 GW (1%)

1.8 billion liters of diesel

4.8 Mio tonnes of CO2

4,800 tonnes of

particulate matter

1%

Total Size of Segment „Captive Diesel Replacement / Hybridization“1

1 Grips Energy AG market assessment

GLOBAL RELEVANCE

5

Business case: PV Cost Saver

Grid-connected factory

Self consumption of PV generation

Total Consumption 11,614 MWh/a

Initial system sizing: 6 MWp (Rooftop)

Solar coverage: 58% (of total load)

Self-consumption: 66% (5,786 MWh p.a.)

Further Measure: > process heat Inside 1 of 10 halls Total roof area 80,000m²

FACTORY EXAMPLE

Average load vs. PV generation

South East Asia – Fashion Factory - Savings

6

Saving Potential (PPA vs. Grid):

282,000 US$/year

(0.172 US$/kWh vs. PPA @ 0.125 US$/kWh)

CO2 Savings (based on PV electricity)

8,633 tones/year (129,498 at 15 years)

Further huge CO2 Saving potential

Sustainable process heat; Energy Efficiency

FACTORY EXAMPLE

Price Inflation PPA vs. BAU

South East Asia – Fashion Factory - Savings

Renewable Energy Systems (Wind/Solar-PV/Hybrid) for Industries

FINANCING OPTIONS

CONTRACTING

(energy payments / PPA)

RENT / LEASING

(fixed instalments)

Direct Purchase

(EPC/BOOT/...)

Third party owned (TPO)

Self-financed

• High initial CAPEX

• Long term

amortization

• Non-Core Business

Investment

• Technology Risk

• Knowledge required

• Good Investment

• No 3rd Party

• Opportunity for lower

total costs

•

• Suitable Off-Taker

required

• Suitable Project

required

•

• Cash-flow fitting

solution (no upfront

invest)

• Immediate, direct

savings

• Mitigation of

technology risk

• Access to expert

knowledge

•

Business Case / Benefits Matrix

CUSTOMER BUSINESS CASES I.

PV-Saver Diesel-Saver Semi-Hybrid Full-Hybrid Full-Energy

CO2 Saving

CO2 Neutral

If no heat required

Cost Saving benchmark

Grid > 0,12 US$ Diesel > 3h/d & 0,80 US$ / ltr.

Dep. On Mix Dep. On Mix Dep. On Mix

Reliable Supply

Technology PV-System (self-supply)

PV-System or/and ESS with

Diesel/HFO

RE/X-ESS-Diesel-Grid

PV-Wind-RE/X-ESS-Diesel/HFO

& RE Process Heat (e.g. Power to

heat, SHIP, WtE)

Objective Economical benefits through replacement of

grid power

Significant reduction of diesel/HFO

consumption

Reliable electricity supply,

complementary to the main grid

Fully grid-independent system 100%

electricity 24/7

Addition of emission free process heat / steam supply

Illustration of most important Use Cases vs. Load

CUSTOMER BUSINESS CASES II.

Full Hybrid (Island)

PV-Cost Saver (self-supply)

Semi-Hybrid (PV-ESS)

Emissions free. Storage. Power & Heat

OUTLOOK: 100% RE SUPPLY FOR EIP

Wind Turbines

PV System

5 GWh Lumenion Storage

District heat for local community

Refinery

Source: Lumenion GmbH – www.lumenion-energy.com

Thermal Use & Storage of non-required RE-Fluctuations

OUTLOOK: 100% RE SUPPLY FOR EIP

Source: Lumenion, Arbeitsgemeinschaft Energiebilanzen (AGEB), Lumenion estimate, *2011, RP-Energie-Lexikon

Lumenion Power to Heat CHP

• 650°C

• Medium: Steel

• 8hrs charge - 48hrs

dispatch

• Power-2-Heat

• Power-2-Heat&Power

www.lumenion-energy.com

Fluctuating RE System Example: Germany

• 90% renewables Scenario

2050

• Simulated 24 months

generation profile

• 380 GW PV,

• 160 GW onshore Wind

• 20 GW Offshore WIND

PV-Li-ion System for F&B Factory in Sub-Saharan Africa

EXEMPLARY SEMI-HYBRID

• Reliable Supply Focus

• Leasing Contract

• PV-ESS Hybrid System

• 99 kWp PV Generator (Canadian Solar, SMA)

• 130 kWh Li-Ion Battery System (ESS)

• Island system (parallel to grid and diesel

generator)

Loading of ESS in Berlin Li-Ion ESS

Construction Impressions

EXEMPLARY SEMI-HYBRID

Factory Impressions

EXEMPLARY SEMI-HYBRID

Thank you!

FINALIST

2014

WINNER

2016

GRIPS Energy AG

info@grips-energy.com

www.grips-energy.com

APPENDIX

COMPETITIVE ENERGY

BEYOND FOSSIL FUELS AND PUBLIC GRIDS

Management Board - Alexander Voigt (CEO) – Solar industry pioneer and serial entrepreneur (Founder SOLON, Q-Cells, Younicos)

- Timon Herzog (COO) – Renewable energy & development cooperation expert (GIZ, SOLON)1

- Michael Friedel (CTO) – RE Hybrid & storage technology expert (Younicos) 1

Supervisory Board - Jens Christian Gloede (Chairman) – Hardware and software serial entrepreneur (Founder FAST LTA AG)

- Christin Schäfer (Deputy Chairwoman) – Statistician and risk management expert (ERSTE Group Bank) 1

- Michael Schneider (Member) – Financing expert, impact entrepreneur (Head of ESG Deutsche Bank) 1

Grips Energy AG is part of and support by econnext / econnoa group http://econnoa.com/

GRIPS MANAGEMENT TEAM

More Than 500 MW of Renewables in 25 Countries Over the Last 20 Years

1 Previous positions

TEAM PROJECT REFERENCES (SELECTED)

GRIPS Management Team has been involved (among many, many other Projects) in

following ground breaking RE projects in leading roles:

• 1999: First EU roof integrated PV systems: Government buildings in Berlin (e.g. Paul-Löbe Haus), SOLON

• 2003: First 2 digit MW PV power plant of the world: Solarpark Erlasee 12 MW, SOLON (1400 2-axial tracking units),

SOLON

• 2004 to 2010: more than 250 MW EPC PV projects (large rooftops, building integrated, utility scale ground mounted, fixed

1- 2- axial tracked) in many parts of the world, SOLON

• 2008: SunEdison 8 MW 2 axial tracked project Alamosa, Colorado, USA, SOLON

• 2008: Development of Graciosa Island Project, 100% RE-hybrid, 4 MW Li-Ion, 1MW PV, 4,5 MW Wind, Younicos

• 2013: Terna, 2 MW Li-Ion for grid stabilisation, Sardinia Island, Italy, Green Utilty

• 2015: First commercial MW rooftop PPA in India – 3.5 MW PV, Delhi Metro (DMRC), GIZ

• 2015: First large scale PV rooftop system on a Indian Cricket Stadium, Bangalore, GIZ

Pictures: SOLON SE, Younicos AG, GIZ