JUMEME Lessons Learned from Project Development and Operations of Mini-Grids

Size: px
Start display at page:

Download "JUMEME Lessons Learned from Project Development and Operations of Mini-Grids"

Transcription

1 JUMEME Lessons Learned from Project Development and Operations of Mini-Grids PEP Information Workshop 5th of July, 2016 Michael Rohrer Rural Electrification

2 Products and Services INENSUS(II) «One-Stop-Shop» for Mini-grids Hybrid system design and technical development Procurement, installation and commissioning Smart metering platform «Micro Power Manager» Business model «Micro Power Economy» Consultancy work in the Mini-grid field Policy-makers (latest MGPT) Mini-grid Operators International Development Cooperations 2

3 JUMEME Company Profile (1) Tanzania Project Description Tanzania: 2014 Foundation of JV JUMEME JV partners: RP Global, TerraProjects and SAUT 16M solar-diesel hybrid mini-grid project Target: access to electricity for > 80,000 people until 2018 Achievement: Pilot project on Ukara Island was inaugurated in April 2016, procurement tenders for 9 further project sites will be published this week JUMEME uses the smart meters developed and produced by INENSUS 3

4 JUMEME Company Profile (2) Partners and Donors Joint Venture Company of Project supported by Further implementation partners Project development is supported by 4

5 Lessons Learned Project Development & Operation 1. Volume Risk Volume risk: The off-takers purchase a lower volume than expected when the decision to invest was taken (IED, 2013) 2. Volume Risk Mitigation A. Demand Assessment B. Fostering Demand through Productive Use C. Demand Management Strategies and Smart Meters 5

6 Lessons Learned 1. Volume Risk 1. Demand needs to be projected correctly for system design (x axis) 2. Tariffs have to be set correctly as fixed and variable costs have to be covered by revenues (y axis) Schematic mini-grid electricity costs, prices and profit margins, Source: Mini-grid Policy Toolkit (2014) 6

7 Lessons Learned 2A. Demand Assessment and how to Mitigate Risks 1. Demand assessment methodologies and their reliability of the results vary widely INENSUS developed its own demand assessment methodology 1) Calculate preliminary costs, preliminary tariffs, connection fees and indoor installation fees 2) Use these preliminary tariffs and fees and design service based questions for the Demand Assessment 3) Conduct a demand assessment with 100% of potential customers 4) During the demand assessment inform the interviewees on the service options and their costs and ask them what type of service they want and can afford, let the result be signed and pay local guides to accompany you As also this methodology does not provide 100% reliability we design our solar-hybrid systems by reducing the renewable fraction 2. Demand Growth is impossible to predict accurately Plan for upscaling of solar-hybrid systems at certain demand stages 7

8 Lessons Learned 2B. Fostering Demand through PU (1) Existing PUs (e.g. mills and wood workshops) PU electricity tariff should be cheaper than the diesel alternative during normal business operation hours -> JUMEME offers a demand managed PU tariff - a special daytime and nighttime tariff for these PUs (daytime tariff is ~4x cheaper) To improve stability of the distribution grid voltage delta-star switches or frequency converters can be installed with PUs with > 1kW motors 8

9 Lessons Learned 2B. Fostering Demand through PU (2) Selection which type of new PUs to actively foster and support (1) Study of potential energy demand, e.g. solar fish dryers, (2) Study of mini-grid tariff competitiveness, e.g. drinking water pumping INENSUS sees a huge potential for agricultural businesses, especially those using excess electricity for irrigation Fostering new PUs (1) Develop Micro-Business Models and Business Plan together (2) Help organize Business and Investor Forums to link the businesses with investors and public officials 9

10 Lessons Learned 2C. Demand Side Management Strategies & Technologies(1) Harper (2013) identified following key DSM Strategies and Technologies: 10

11 Lessons Learned 2C. Demand Side Management Strategies & Technologies (2) Harper (2013) identified following key DSM Strategies and Technologies: Smart Meter MPM Current DSM Strategy and Technology used by JUMEME Technical Development (soon to be implemented) MPM Mesh Network with fully integrated Mobile Money Function 11

12 Thank you for your attention! Contact INENSUS GmbH Am Stollen 19D Goslar Germany Michael Rohrer