session 1 - solar mini grid implementation-ram prasad dhital
TRANSCRIPT
-
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
-
7/29/2019 Session 1 - Solar Mini Grid Implementation-Ram Prasad Dhital
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
-
7/29/2019 Session 1 - Solar Mini Grid Implementation-Ram Prasad Dhital
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
-
7/29/2019 Session 1 - Solar Mini Grid Implementation-Ram Prasad Dhital
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
-
7/29/2019 Session 1 - Solar Mini Grid Implementation-Ram Prasad Dhital
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
-
7/29/2019 Session 1 - Solar Mini Grid Implementation-Ram Prasad Dhital
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
-
7/29/2019 Session 1 - Solar Mini Grid Implementation-Ram Prasad Dhital
7/20
2/6/2013 7
-
7/29/2019 Session 1 - Solar Mini Grid Implementation-Ram Prasad Dhital
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
-
7/29/2019 Session 1 - Solar Mini Grid Implementation-Ram Prasad Dhital
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
-
7/29/2019 Session 1 - Solar Mini Grid Implementation-Ram Prasad Dhital
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
-
7/29/2019 Session 1 - Solar Mini Grid Implementation-Ram Prasad Dhital
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
-
7/29/2019 Session 1 - Solar Mini Grid Implementation-Ram Prasad Dhital
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
-
7/29/2019 Session 1 - Solar Mini Grid Implementation-Ram Prasad Dhital
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
-
7/29/2019 Session 1 - Solar Mini Grid Implementation-Ram Prasad Dhital
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
-
7/29/2019 Session 1 - Solar Mini Grid Implementation-Ram Prasad Dhital
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
-
7/29/2019 Session 1 - Solar Mini Grid Implementation-Ram Prasad Dhital
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
-
7/29/2019 Session 1 - Solar Mini Grid Implementation-Ram Prasad Dhital
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
-
7/29/2019 Session 1 - Solar Mini Grid Implementation-Ram Prasad Dhital
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
-
7/29/2019 Session 1 - Solar Mini Grid Implementation-Ram Prasad Dhital
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
-
7/29/2019 Session 1 - Solar Mini Grid Implementation-Ram Prasad Dhital
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]