future ipp’s can benefit from existing european net metering systems. johan woudstra (thu)...

FUTURE IPP’s CAN BENEFIT FROM EXISTING EUROPEAN NET METERING SYSTEMS.

Johan Woudstra (THU)jbwoudstra@hhs.nl

&

Ben Groenewald (CPUT)groenewaldb@cput.ac.za

15 - 16 August 2012ICUE Conference

Protea Hotel, Stellenbossh

Contents:

1. Introduction

2. Opportunities in South Africa (SA)

3. Dutch/European System of Distributed Generation (DG)a. Solar and Wind Systems

Cost & SavingsPayment of Energy delivered back to the GridPermits

b. Metering Systems

Analogue and Digital Smart Metering (Billing System)

c. Integration of Solar and Wind Systems into the Grid

4. Conclusion

Opportunities in South Africa (SA)

• Two acts direct the planning and development of the country’s electricity sector:

– The Electricity Regulation Act (ERA) of 2006 (No. 4 of 2006).

– The National Energy Act of 2008 (No. 34 of 2008).

Opportunities in South Africa (SA)

• August 2009, Department of Energy (DoE) gazetted Electricity Regulations on New Generation Capacity under the Electricity Regulation Act (ERA).

• The New Generation Regulations established:

– Rules and guidelines applicable to the undertaking of an IPP Bid Programme

– Procurement of IPP’s for new generation capacity

– Facilitation of fair treatment and non-discrimination between IPP’s and the buyer of the energy.

Components of Dutch Electricity Grid

• Production Nuon, Essent, Electrabel, Delta,

E.ON - (65% of market)

• Transport TenneT

• Distribution NUON, Essent, Eneco

• “Dealers” GreenChoice, Nederlandseenergie bedrijf, Nuon, Eneco,Atoomstroom, etc.

Distributed Generation Technologies Used

• Solar

• Wind

• Water?

A typical IPP supply system connected to the national grid

Dutch/European System of Distributed GenerationSolar Systems

Solar panel roof installation

Dutch/European System of Distributed GenerationSolar Systems

Typical Solar installation on a farm in Spain

Government Grants for Solar Panels/Farms

From 2 July 2012 – December 2013

Applicants get 15% of the cost of the Panels

Up to a maximum of 650 euro (R6500)

Basic Compensation for Solar Power Generation(Government Regulation)

Dealers must compensate your own use up to 5000 kWh/year

When you use 5000 kWh and you produce 5000 kWh you have to pay nothing

This means: Solar kWh price is ± 0.20 euro

Payment Example No. 1(per year)

Used 4000 kWh

Produced solar 3000 kWh

Difference 1000 kWh (due by customer)

Consumer pays: 1000kWh x €0.2 = €200

1000kWh x R2.00 = R2000

Payment Example No. 2

Used 4000 kWh

Produced solar 6000 kWh

Difference 2000 kWh (customer over supply)

Payment received: 2000 kWh x €0.07 = €1402000 kWh x R0.70 = R1400

Price produced solar energy: €0.07/kWh = R0.70/kWh

Payment Example No. 3

Used : 8000 kWh

Produced solar: 6000 kWh

To Pay: (8000-5000) kWh x €0.20 = €600

Compensation received: 1000kWh x €0.07 = €70

Total amount due by customer: €600 – €70 = €530

Payment Example No. 4

Used 7000 kWh

Produced solar 8000 kWh

To Pay (7000-5000) kWh x €0,20 = €400

Compensation received: 3000 kWh x €0,07= €210

Total amount due by customer: €400 – €210 = €190

Permits for Solar Installations

Depending on local government rules

Most cases no permit necessary

Only when you change the look of your roof

Dutch/European System of Distributed Generation Wind Systems

Example of a horizontal axis wind turbine

Example of a vertical axis (Darius) wind turbine

Wind Turbines on a farm

In the future we will have

enough energy but no food!!

Government Grants for Wind Turbines

• Generally No Grant for small scale Wind Turbines < 15 kW

• Local governments do have there own system

• Dealers must compensate your own use up to 5000 kWh/year (government regulation)

Grants for Large Wind Turbine >15 kW

SDE = Stimulation (Duurzame) Sustainable Energy

Complicated arrangement but it guarantees a basic payment per kWh

Depending on the market price you get a grant

Investment and Profit for Large Wind Turbines

Cost of 3 MW Wind Turbine : ± 4.6 million euro

Repayment period: 15 years

Electricity produced over 15 years: ± 8 million euro

The profit is ± 1.2 million euro = ± 80 000 euro/year

Permits for Wind Turbines

• Environment and building permits are required

• In urban areas wind turbine heights are restricted to no higher than 18m (local government rules may dictate otherwise)

For large wind turbines it is difficult to obtain a permit.

Can take years to obtain a permit due to regulations and procedures.

Dutch/European System of Distributed Generation Metering

A Typical “Draaistroommeter” (Ferraris meter)

Typical Smart meter used in the Netherlands

Example of a settlement for the solar energy production of a year

Example of a grid tie inverter

Example of a grid tie inverter

Typical Grid Tie Inverter specifications

• Model GTI-500W • AC Output Voltage Range 190V ~ 260V • AC-output Frequency Range 46Hz ~ 65Hz • Total Harmonic Distortion <5% • Power Factor 0,99 • DC-Input Voltage Range 14V ~ 28V• Peak Efficiency 94% • Stand-by Power <0,5 W

Conclusion

Clear that there are opportunities for IPP’s

Distributed Generation (DG) can lighten the supply load on Eskom without affecting profit margins

Recently 28 IPP licenses were approved by NERSA – shows SA’s commitment to encourage independent power generation

Much can be learned from the Dutch/European System!

Thank You

Questions?