Session 1 - Solar Mini Grid Implementation-Ram Prasad Dhital

7/29/2019 Session 1 - Solar Mini Grid Implementation-Ram Prasad Dhital

1/20

Solar Energy Implementation

Model in Nepal and WayForward for Scaling Up

Feb 6, 2013

Ram Prasad Dhital

Assistant Director, AEPC andProgram Manager, Solar EnergySub Component, NRREP


2/20

PRESENTATION OUTLINE

Energy Situation of Nepal Why Solar Energy for Nepal?

Major Initiatives on Solar Energy

Existing Business Model; Concepts and Concerns Utility Based Model

CESP Model

Vendor Sales Subsidy Model

Barriers to Upscale

Way Forward

2/6/2013 2


3/20

ENERGY SITUATION OF NEPAL HHs with access to

electricity: 55% (45%-Grid, 10% - Off-Grid)

High dependence ontraditional fuel

High dependence onimported petroleumproducts

Rich in water resourcesbut an acute energy crisis

Residential sector- 89% Industrial & Commercial-

4.6%

Transport- 5% and Agri-0.9%

Source: WECS, 2010


4/20

SOLAR ENERGY PROSPECTS IN NEPAL

Average solar

radiation: 3.6 ~ 6.2

kWh/m2/day- 300

days,

Grid extension is

unfeasible due to

Difficult terrain andRemoteness

Scattered and Sparsepopulation

Lower load densities

Lower lowerutilization rates

Source: AEPC


5/20

MAJOR INITIATIVES ON SOLAR ENERGY IN NEPAL

NEA supported/owned a few Mini Grid Systems (Notoperational )

Danida, KfW, DFID,Norway supported Solar EnergyComponent of AEPC/ESAP (1999-2012)

European Commission supported Renewable EnergyProject (2006-2012)

ADB supported Renewable Energy Project for a 10 kWpSolar Wind Hybrid Project (2009-2012)

GoN supported Institutional PV systems (1999-to date) National Rural and Renewable Energy Program (2012-

2017)

2/6/2013 5


6/20

MINI GRID SOLAR PV CONCEPT

Central distribution - micro utility unit operated by arenewable service company or community itself or co-operative etc.

Distribution of energy relative to demand against fixedsupply as in solar home system

More energy for productive end use application Cost /watt lower due to larger size

More control in the system

Easy to monitor installation and system parameters

Day time load and night time load can be categorizedand size of battery bank can be reduced for day timeload.

2/6/2013 6


7/20

2/6/2013 7


8/20

BUSINESS MODEL FOR SOLAR ENERGY

IMPLEMENTATION IN NEPAL

Existing Business models for rural power

mini-grids and /or SHS

The utility-based model

Community-based model (CESP Model)

Private sector-based model (Vendor Sales Model)

2/6/2013 8


9/20

UTILITY BASED MINI GRID SOLAR PV

NEA has installed as part of a Frenchgovernment development project in 1989

three solar PV array systems in -

30 kWp ,Kodari

50 kWp , Gamghadi

50 kWp , Simikot

2/6/2013 9


10/20

KEY ISSUES TO CONSIDER FOR SOLAR MINI GRIDS

Proper load assessment and design

Sustainable financial model

Sustainable operation and maintenance plan

Clarity in role of the private sector, tariffs and subsidies,

and capacity building Participatory approach for project implementation

2/6/2013 10

NEA (Utility) owned model has been failed in Nepal becauseof non and/ or partial consideration of the above issues

Learning Maintenance is key to system longevity


11/20

11

CESP(Coop/Pvt Com)

Social

Institutions

Other Users

BusinessOrganizations

Quality EnergyServices/ Water

Repair &Maintenance

Tariff

REPProvidedPV-Equip-ment

CO

CESP APPROACH UNDER AEPC/EU/REP

Source: REP project document

REP facilitated COto CESP


12/20

ACHIEVEMENTS UNDER CESP MODEL (AS OF FEB29,2012)

2/6/2013 12

Sn PV package

Number of systems

Far west Mid westWestern &

CentralEastern Total

1 Local health post 68 39 42 57 206

2 School package 1 74 45 47 72 238

3 School package 2 31 29 34 46 140

4 Community computer literacy 12 6 11 0 29

5 Community entertainment 16 17 21 5 59

6 Community communication

centre

33 20 38 33 124

7 PV agro-grinding mill 31 50 22 4 107

8 Water pumping system 17 7 4 2 30

Total 282 213 219 219 933

Source: REP


13/20

COMMUNITY ENERGY SERVICE PROVIDER (CESP):

CONCEPT AND CONCERNS

Concept

Ownership lies with CESP

CESP installs solar systemsand charges the user a

monthly fee for the

energy it produces

CESP is for maintenanceand providing

replacement parts over

the life of the service

contract

Concerns

Substantial TA for feasibility

study and training for O & M Operation difficult in

dispersed population,

High costs of travel and

equipment parts, Limited ability/willingness to

pay regular installments

Relatively low household

prioritization of electricitybeyond lighting2/6/2013 13


14/20

SEC

(AEPC/NRRE

P)assesses/

verifies the

form

Rural Energy

fund verifies

and releases

90% of the

subsidy

Vendor creates

demand, installssystems (at least 10

systems in one

cluster), take photo,

fill subsidy

application form

and conduct a

simple operation

and maintenance

training

Vendor

submits the

subsidy

form to the

program

Vendors are

prequalified

Y

N NReturn

to

vender

Y

es

SEC selects no of sites

randomly thru

computerized program to

be visited for physical

verification and qualityassurance

The prequalified

consulting firm (third

party) verifies 10% of

the installations in

field

Monitoring report is a

basis for performance

evaluation and

grading of companies

including penalty and

disqualification

The Rural Energy Fund

releases the retention

money (10%)

VEND0R SALES SUBSIDIZED MODEL UNDER

ESAP AND NRREP


15/20

ACHIEVEMENTS UNDER VEND0R SALES MODEL (AS

OF JAN,2013) AND PLAN FOR THE NEXT 5 YEARS

Achievements

Solar Home Systems

(SHSs) 300,000 Small Solar Home

Systems (SSHSs)- 30,000

ISPS- 500 including two

big systems 24 kWp, TU library

14 kWp, Presidents palace

Tentative Plan (2013-2017)

Solar Home Systems

(SHSs) 600000 Large Systems- 1500

2/6/2013 15


16/20

SUBSIDIZED DEMAND BASED VENDOR (PQ

COMPANY) SALES: CONCEPT AND CONCERNS

Concept

Long term financing with a subsidycomponent

Vendors are qualified and areresponsible for installing systemsand providing after sales servicefor one year from the date ofinstallation.

After one year, users need to take

responsibility for operation andmaintenance of their system.

Users also need to pay formaintenance and replacement ofthe parts when required

Concerns/Issues Not cost effective as it requires

strong quality assurance andmonitoring mechanism.

Issue of inflated pricing,reaching to the poorersegment of the society,administrating subsidy

Unhealthy competition among

vendors. Replacement of parts is of

lower quality

Battery management

2/6/2013 16


17/20

MINI GRID SOLAR PV BARRIERS TO UPSCALE

Financial

High investment cost

Lack of access to credit

Ensuring tariff collection

Ensuring productive end use

application

Social

Technology

knowledge

Users

expectations

2/6/2013 17

Technical

Limited expertise in solar mini grid systems

Majority of components are imported

Lack of easily available spare parts

System maintenance and operation

Lack of standard, codes and certification

Policy

Lack of innovative RE

favored policy options

Favor (Subsidy) to

fossil fuel

No additional support

for minigrid


18/20

MINI GRID SOLAR PV and SHS: WAY FORWARD

Link capacity development activities with academic and

vocational institutions

Engage research institutes for cost reduction options

Initiate some innovative RE favored policy options FIT, Net Metering, Accelerated depreciation etc.

Increase tariff for urban area and subsidies the equivalent increment in rural

area

Prepaid tariff meters for regular revenue

Implement an appropriate business model Link with commercial banks and private company equity

Promotion of productive end use - financing and market identification

2/6/2013 18


19/20

UPSCALING STRATEGIES

Pilot

In fewplaces

Lessonslearned(1996-2003, 5

districts)

Expansion

Based onlessonslearned

expansion in2003-2007

25 districts

Replication

In otherdistricts andregion and

neighboringcountries

Mainstreaming

Policyformulation,governmentcommitment

(2006 REpolicy)

Up-scaling

19

Source: Adapted from RERL


20/20

For further contact:

Ram Prasad DhitalAssistant Director AEPC and

Program Manager, Solar Energy Sub

Component NRREPAlternative Energy Promotion CentreTel:+977-5548468,5539390,5539237

ext 324Mobile: +977-98510-76005Email: [email protected]

Website: www.aepc.gov.np20
mailto:[email protected]://www.aepc.gov.np/http://www.aepc.gov.np/mailto:[email protected]

Session 1 - Solar Mini Grid Implementation-Ram Prasad Dhital

Documents

Transcript of Session 1 - Solar Mini Grid Implementation-Ram Prasad Dhital