Olivier Drücke, Vice president Off-Grid Power Conference ... · Power Purchase Agreement (PPA) The...

POWER THE WAY TO SUSTAINABILITY

Olivier Drücke, Vice president Off-Grid Power Conference @ Intersolar Europe 2017, Munich, 31.05. 2017


AGENDA

Introduction SINES Group & SOLAR23

Product & Service

Certificates

1

2

3

References 4

PV-Diesel Hybrid Systems 5

2


AGENDA

Introduction SINES Group & SOLAR23

Product & Services

Certificates

1

2

3

References 4

5

3

PV-Diesel Hybrid Systems


SINES Group of companies

1 SINES France Founded in 2010, the French company, SINES SAS, is one of the leading suppliers of stand alone solar systems. As a system supplier, SINES France offers all components for off-grid solutions as well as all related services.

SINES Industrie SINES Industry is one of the Tunisia’s largest solar thermal manufacturer. They provide turnkey commercial solar water heating solutions as well as pre-engineered residential systems. SINES Industry and its affiliates have been in business since 1995.

Solar23 GmbH Since its inception in 2000, SOLAR23 is a turnkey provider of off-grid‐connected photovoltaic systems and independent solar thermal systems with an international dealer network and customers mainly in Africa and also rest of the world

SINES Tunisia SINES Tunisia with headquarters in Tunis, has become a pioneer and fearless leader in the design, engineering, supply, installation and development of dynamic renewable solutions.

www.sines-group.com

4

http://www.sines.fr/







HISTORY

1

Ismail Sibai

creates SINES

Ismail Sibai creates

SOLAR23 GmbH

Focusing on Africa

and Germany, when

the German Solar

market starts

booming

SOLAR23 GmbH

achieved 10 MWP of solar

power solutions and a

turnover of 13,0 M€, 25

Employees in Germany

through the German PV

Market

1995 2000 2004

Foundation of

SINES Industrie

2008

Foundation of

SINES France SAS

as PV components

seller

2010

SOLAR23 GmbH

strengthening

activities on African

market, stop of the

activities on the

German PV market

2011 2013 2015

SOLAR23 GmbH

increases in

capital and

purchase own

office in Ulm

2016

Creation of

DERYA-SOLAR23

in Turkey

ISO 9001:2015

certification of

SOLAR23

5


OUR PARTNERS

1 ABIDJAN, Ivory Coast

ACCRA, Ghana

ADDIS ABABA, Ethiopia

ALGIER, Algeria

ANTANANARIVO, Madagascar

ASMARA, Eritrea

BAMAKO, Mali

BANJUL, Gambai

BUJUMBURA, Burundi

DAKAR, Senegal

BISSAU, Guinea Bissau

HARARE , Zimbabwe

JEDDAH, Saudi Arabia

KAIRO, Egypt

KAMPALA, Uganda

KINSHASA, Dem. Rep. Of Congo

LAGOS, Nigeria

LOMÉ, Togo

LUSAKA, Zambia

MOGADISCHU, Somalia

Africa Africa

NDJAMENA, Chad

NIAMEY , Niger

NOUAKCHOTT, Mauritania

OUAGADOUGOU, Burkina Faso

PRAIA, Cape Verde

RIADH, Saudi Arabia

TUNIS, Tunisia

YOUNDÉ, Cameroon

Europe

ULM, Germany

BORDEAUX, France (Sines SAS)

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AGENDA

Introduction SINES GROUP & SOLAR23

Product & Services

Certificates

1

2

3

References 4

5

7



SOLAR POWER SOLUTIONS BY SOLAR23

2

8


OFFERED SERVICES

2

9


AGENDA


Product & Services

Certificates

1

2

3

References 4

5

10



CERTIFICATES

3

11


AGENDA


Product & Services

Certificates

1

2

3

References 4

5

12



REFERENCES – ON-GRID

4

13

SOLAR POWER PLANT REICHARDSWERBEN, GERMANY

Capacity : 7,5 MW

SOLAR POWER PLANT MEMMINGEN, GERMANY

Capacity : 1,5 MW

FACTORY MEMMINGEN, GERMANY

Capacity : 323 kWp

CURVED ROOFTOP ERBOLZHEIM, GERMANY

Capacity : 47 kWp

FACTORY TAROUDANT, MOROCCO

Capacity : 25 kWp

FACTORY BOKSBURG, SOUTH AFRICA

Capacity : 43,2 kWp


REFERENCES – OFF-GRID

4

14

STREET LIGHTING

3 SITES, IRAQ

400 street lights

CORROSION PROTECTION

417K0 PIPELINE, AUSTRALIA

Capacity: 119 kWp

SOLAR HOME SYSTEMS

20 SITES, TUNISIA

Capacity: 180 kWp

WATER PUMPING

5 SITES, IVORY COAST

Capacity: 153 kWp

RURAL ELECTRIFICATION

50 SITES, ETHIOPIA

Capacity: 100 kWp

VILLAGE POWER SUPPLY

ABUDJA, NIGERIA

Capacity: 42 kW


Longterm Agreements with major donors

15

4

Longterm Agreements with:

UNDP – United Nations Development Program

UNFPA – United Nations Population Fund

UNOPS – United Nations Office for Procurement Services

UNGM – United Nations Global Market Place

Registered at: GIZ, FRES, Le GRET, WEM, BEGECA, Welthungerhilfe, JUMEME, UNICEF, EU, Worldbank, DENA, …


AGENDA


Product & Services

Certificates

1

2

3

References 4

5

16



Markets of PV Diesel Hybrid Systems

Cost of diesel power generation can be well above 0,20 EUR/kWh (when transport costs are high and generator efficiency is low).

Attractive market for the implementation/integration of renewable energies (hybridisation) without subsidies.

Where are the market potentials lying?

Island energy supply

Industry and commercial companies (Mining, tourism,…)

Rural electrification

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Yearly market of diesel generators: >60 GW resp. >50 Billion EUR

Installed capacity: >600 GW

Price learning curve of PV modules: For the last 35 years, each time the cumulative production doubled, the module price went down by 23%.

Today it is at approx. 0,5 EUR/kWp

Market triggers: Generator market size & PV Prices

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Market triggers: Crude oil and oil product prices

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Long-term: increases of oil and diesel prices are almost certain

Short to mid-term: Strong price fluctua-tions remain likely

Actually: Low oil price is a stumbling block for investments into fuel-saver systems

However, the question is not if, but when prices will rise


Market triggers: Price parities of PV versus fossil fuels

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1) Thermal energy content: Gasoline = 8,9 kWh/l and Fuel oil = 9,8 kWh/l

Parity with diesel power

from 2007 to 2010

Parity with gasoline and

diesel (thermal1)

from 2012 to 2013

Parity with natural gas and

fuel oil (thermal1)

from 2014 to 2017

60

Year

Source: Fraunhofer ISE 2016


System price development of PV battery storage

The development of battery storage system prices still stands at the beginning

The price reduction between 2013 and 2015 was approx. 30% in Germany

21

Sources: Fraunhofer ISE 2016 / Rocky Mountain Institute / Bloomberg 2015


Fully integrated PV-diesel hybrid system

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Source: Belectric


Types of PV-Diesel Hybrid systems

Type Diesel operation

PV grid feed-in

Storage Controller regulates

Diesel savings

1 24/7

unregulated N/A N/A +

2 24/7 output reduceable

N/A PV ++

3a 24/7 output reduceable

dynamic regulation

PV and Storage

+++

3b as required output reduceable

grid forming with high capacity

PV & storage steer diesel generator

++++

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Typical markets and applications

Rural electricification / Island power supply

Mining / heavy industries

Tourism / Hotels

Agriculture

Water supply, e.g. Pumps, desalination, irrigation

Telecommunications

Small and medium sized manufacturing companies

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World market of rural electrification

25


Rural electricification key facts

THE POTENTIAL:

• 1,2 billion people in the world have no access to electricity

• But, electrification is mostly done through power grid extensions

• But, local populations have very low purchase power

IMPLEMENTATION:

• Difficult business model, because revenues per client are very small

• Mostly no real hybridisation, but rather new electrification: Pure PV-Battery projects are likely

• Often donation financed projects

26


World market of diesel generators for remote industries

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Remote industries key facts

THE POTENTIAL:

• High number of diesel generators/power plants for remote power supply of mines and industries

• Diesel generators/power plants are often operated as back-up in weak grids (with power outages of more than 6 hours/day

• However, diesel is frequently subsidized resulting in low cost of diesel generated power

IMPLEMENTATION:

• Diesel generators/power plants are mostly privately owned & operated and the producer generally is also the consumer

• Diesel savings thus directly benefit the power plant owners

• There is a commercial clientele with available investment capital, but very high yield expectations (e.g. Payback-time <3 to 5 years)

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Technological strengths & challenges

STRENGHS:

SIZING of PV for off-grid locations does not need to fully cover the load requirement during winter/rainy season

PEAK POWER - Temporary availability of cumulated peak power (Diesel+PV+Battery)

REDUNDANCY of the power generation system resulting in higher reliability, flexibility

EXPANDABILITY due to modularity of PV technology

EFFICIENCY more efficient diesel operation & longer diesel generator lifetime

CHALLENGES:

Diesel generators with improved PARTIAL LOAD PERFORMANCE

Power GRID FORMING regulation of inverters for flexible, expandable systems

POWER PROTECTION concepts (notably for Type 3b systems, see slide 23)

Development and compliance of technical SPECIFICATIONS AND STANDARDS

Harsh CLIMATIC CONDITIONS (humid/hot, dust, frost, salty air, altitude locations,…)

Quality of FORECASTING load and PV-generation

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Economic challenges

Competitiveness is required even when diesel prices are low

Negotiation of power supply contracts with clients who operate a volatile business

Amortisation requirements/expectations of <5 years?

Cost reduction of battery storage systems

Optimisation calculation / Definition of cost functions for all system components

Sales and service into remote regions

30


Business models

Self-consumption

Plant owner and power users are identical

Power Purchase Agreement (PPA)

The plant operator sells the generated power to consumers according to a long-term power supply contract

Co-Ownership

The power consumer owns the plants only partially. An investor refinances himself through power sales to the power consumer

Rental agreement

The power consumer rents a power plant for self-consumption

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For example: Our activities in Nigeria

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For example: Our activities in Tansania

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Conclusion

Technology is available and mature

Deep project context understanding and individual planning (technical/economic) are required. This is quite a lot of work !

The economic profitability and feasibility is generally given

Large industry clients are often hesitating

They cannot really assess and gauge the technology

They avoid long-term contractual ties and prefer flexibility

However, the interest is growing and a market breakthrough is possible in the mid-term

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Thanks for your attention Merci de votre attention

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Olivier Drücke, Vice president Off-Grid Power Conference ... · Power Purchase Agreement (PPA) The...

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