NREL and the Quality Assurance Framework for Minigrids

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1 NREL and the Quality Assurance Framewrk fr Minigrids Tim Reber Natinal Renewable Energy Labratry Nvember 14, 2018 Dakar, Senegal

2 NREL s Multilateral and Bilateral Initiatives in Africa NREL Initiatives in Africa 21 st Century Pwer Partnership (21CPP) Department f State, DOE Africa LEDS Prject Eurpean Cmmissin *Clean Energy Slutins Center (CESC) DOS, DOE, Australia, Pwer Africa, thers Enhancing Capacity fr Lw Emissin Develpment Strategies (EC-LEDS) USAID Leadership Cmpact Department f State, Hewlett *LEDS Glbal Partnership (LEDS GP) Department f State, GIZ, and many thers * Initiatives engaged in minigrid activities *Pwer Africa Beynd the Grid (BTG) Technical Supprt Pwer Africa 2

3 The Utility Mdel Business mdels fr cmmercially viable utilities must address the needs f the three key stakehlder grups: Custmer: Need guarantee f service that they are willing and able t pay fr Pwer Suppliers: Need t cver perating csts while prviding return t investrs Investrs: Need t understand and be cnfident f the risks they are taking 3

4 The Mini-grid Utility Mdel Utility mdel breaks dwn in the case f rural electrificatin as a result f three main challenges: High cst f pwer prvisin t remte cmmunities Impacts custmer ability and willingness t pay Lack f cnsistent cash flws frm custmers Impacts pwer supplier ability t cver csts and prvide returns Prly understd investment risk prfile Impacts investr cnfidence in market risks 4

5 A Mini-grid Quality Assurance Framewrk (QAF) Offer structure and transparency fr minigrid sectr, based n successful utility mdels, that still reflects the diverse needs and requirements f ff-grid cnsumers. Cmmn understanding fr classifying minigrids Better tailring system design t custmer needs with cnsistent and flexible specificatins Flexible and adaptable framewrk fr any minigrid Enable aggregatin and investment with cmmn classificatin and prtcls and new market data Surce: Kari Burman, August

6 Elements f the Quality Assurance Framewrk 1. Define levels f service tailred t cnsumer need and ability t pay, including apprpriate and flexible threshlds fr: Pwer quality Pwer availability Pwer reliability 2. Define accuntability framewrk Clear prcesses fr validatin f pwer delivery with trusted infrmatin fr cnsumers, funders and regulatrs Suggested mnitring and reprting prtcls fr peratrs t imprve transparency, sustainability and market infrmatin QAF des nt mandate a standard prcess r level f service, rather ffers cmmn means t reference and ensure service TRUTH IN ADVERTISING 6

7 QAF Element 1: Levels f Service fr Islated Mini-grids 1. Pwer Quality Is the pwer prvided f a reasnable quality t safely meet the energy needs f the cnsumers? Vltage and frequency variatins, distrtin etc. 2. Pwer Availability Is the pwer prvided in an amunt that meets expectatins and at the times that meet cnsumer needs? Hurs f service, pwer and energy levels, etc. 3. Pwer Reliability Is the pwer prvided with reliability t meet cnsumer needs? Surce: Kari Burman, Nvember 2016 Surce: Slar Nigeria,

8 QAF Element 2: Defined Accuntability Framewrk 1. Cnsumer Accuntability defines, mnitrs, and validates that a specific level f service is being prvided t a custmer Prtcls fr level f service verificatin Guidelines fr service agreements 2. Utility Accuntability allws funding r regulatry rganizatins t understand if the system is safe and prviding the agreed upn level f service Technical reprting guidelines Business reprting guidelines Suggested standard reprting prcesses and templates Surce: NREL PIX #07805 Surce: Jake Lyell fr the Millennium Challenge Crpratin 8

9 QAF Implementatin at the Prgram and Prject Level Prgram Develpment Step Regulatr Ministry Develper s Mini-utility Investrs 1. Specify prject gals 2. Develp plicy and wnership framewrks 3. Develp reprting and measurement requirements 4. Develp perfrmance, mnitring, and reprting Prject Develpment plans/prcedures 5. Develp a prject r prgram quality assurance Custmer A. Cnduct cmmunity needs verificatin prcess assessments 6. Develp prgram and B. Design pwer prject dcumentatin system 7. Implement quality assurance verificatin C. Cmplete prject prcess permitting 8. Implement the mini-grid D. Determine rate deplyment prject structure 9. Cllect and analyze lngterm system peratinal E. Install pwer system data Step Regulatr Ministry Develper Mini-utility Investrs Custmer F. Implement pwer mnitring system G. Cmmissining the pwer system 9

10 Pwer Africa Beynd the Grid (BTG) Prgram Supprt Supprting the BTG prgram with demanddriven technical assistance t enable new micr-grid deplyment, fcused n the QAF Specific areas f supprt include: Technical assistance t develpers Mdelling and analysis, cmmissining, battery selectin, custmer agreements, etc. Supprt fr gvernment entities t develp plicy, new prjects and the enabling envirnment Tanzania, Sierra Lene, Ghana, etc. Publicatin f reprts, guides and templates t supprt MG stakehlders with gd practices Perfrmance mnitring, prductive use, custmer surveys, tariff issues, custmer agreements, etc. Cllabratin with cmplementary prgrams GMG MDP, GMG HD, AfLP, etc. 10

11 Key Peer-Exchange and Technical Assistance Netwrks The Africa Minigrids Cmmunity f Practice (AMG CP) Over a dzen African cuntries lking t scaleup minigrid deplyment. Share lessns regarding technical, plicy and financial challenges f minigrids. Facilitate cllective actin acrss cmmunity members. Member wrkshps, webinars, facilitated exchanges, technical assistance and mre. africasecretariat@ledsgp.rg The Clean Energy Slutins Center (CESC) Helps gvernments design and adpt plicies and prgrams that supprt the deplyment f clean energy technlgy. Clearinghuse f technical assistance and training resurces. Ask-an-Expert Tailred, n-demand technical assistance fr gvernments n a variety f clean energy tpics (such as minigrids) at n cst. Over 90 experts frm 30+ institutins arund the wrld 11

12 Thank Yu!

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