[Smart Grid Market Research] Microgrids: The BRICS Opportunity - Zpryme Smart Grid Insights

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Many parts of the world are without grid-connected electrical power. As their population and standard of living increase, so will their demand for energy, and a suitable system for providing that …

Many parts of the world are without grid-connected electrical power. As their population and standard of living increase, so will their demand for energy, and a suitable system for providing that electricity to them. The current energy system is unable to offer connectivity to many of these remote locations for economic or logistical reasons. One solution to providing energy to these remote locations is to install microgrids. Several large firms have expanded operations into the microgrid marketplace, while niche firms have developed customized programs specific to the market. The 33-page special report, Microgrids: The BRICS Opportunity, reveals that by 2020, the total BRICS microgrid market is projected to reach $4.5 billion with China accounting for 45% of the BRICS market at $2 billion and a staggering $13.4 billion globally. In this report Zpryme zero-ins on the BRICS microgrid ecosystem by identifying market trends and drivers, recounting country by country projects descriptions, challenges/opportunities to market entry and also two unique Q&A’s from Echelon and Siemens.

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  • 1. SMART GRID INSIGHTS JULY 2012 SMARTGRIDRESEARCH.ORG INTELLIGENT RESEARCH FOR AN INTELLIGENT MARKETTM PREMIUM MICROGRIDS: THE BRICSINTELLIGENCE BY ZPRYME | ZPRYME.COM© 2012 ZPRYME RESEARCH & CONSULTING, LLC. ALL RIGHTS RESERVED. OPPORTUNITY
  • 2. Table of ContentsExecutive Summary ................................................................. 2Benefits of Microgrids .............................................................. 4Global Market Value Forecasts.............................................. 6Key Players ............................................................................... 7Challenges & Barriers to the Microgrid Market ..................... 9Key Microgrid Solutions ......................................................... 10BRICS: The Microgrid Opportunity ........................................ 12 BRICS Nations: Drivers........................................................... 12 Major End-Use Industries for Microgrids ............................. 14Brazil ........................................................................................ 16 Brazil: Drivers .......................................................................... 16 Brazil: Microgrid Market Forecast ....................................... 16 Brazil: Projects ........................................................................ 17Russia ...................................................................................... 19 Russia: Drivers ........................................................................ 19 Russia: Microgrid Market Forecast ..................................... 20 Russia: Projects ...................................................................... 20India ........................................................................................ 21 India: Drivers .......................................................................... 21 India: Microgrid Market Forecast ....................................... 22 India: Projects ........................................................................ 22China....................................................................................... 24 Special Thanks China: Drivers ........................................................................ 24 China: Microgrid Market Forecast ..................................... 25 China: Projects ...................................................................... 25 Thierry GodartSouth Africa ............................................................................ 27 Siemens, President of Smart Grid Division, U.S. South Africa: Drivers ............................................................. 27 www.siemens.com South Africa: Microgrid Market Forecast .......................... 28 Jeff Lund South Africa: Projects ........................................................... 28 Echelon, VP of Business DevelopmentBRICS: Microgrid Outlook ...................................................... 29 www.echelon.comQ&A with Echelon .................................................................. 31Q&A with Siemens ................................................................. 331 [PREMIUM] ZPRYME SMART GRID INSIGHTS Microgrids: The BRICS Opportunity | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org
  • 3. Executive Summary Global Microgrids Market Value Forecast CAGR = 13% 2012 to 2020 (in US billions)Many parts of the world are without grid-connected (figure 1, source: Zpryme)electrical power. As their population and standard of $15 $13.40living increase, so will their demand for energy, and a $12.01suitable system for providing that electricity to them. The $12 $10.82current energy system is unable to offer connectivity to $9.57many of these remote locations for economic or logistical $9 $8.33reasons. One solution to providing energy to these remote $7.50 $6.90locations is to install microgrids. Several large firms have $6.20 $6expanded operations into the microgrid marketplace, $4.95while niche firms have developed customized programsspecific to the market. $3  The global microgrids market is projected to reach $0 $4.95 billion in 2012. By 2020, the global microgrid 2012 2013 2014 2015 2016 2017 2018 2019 2020 market is projected to reach $13.40 billion. The market is projected to grow at a compound annual growth rate of 13% from 2012 to 2020. BRICS Microgrids Market Value Forecast CAGR = 25% 2012 to 2020 (in US billions)  In 2012, the combined microgrids market value for (figure 2, source: Zpryme) BRICS (Brazil, Russia, India, China, and South Africa) $5 $4.47 nations is projected to reach $0.73 billion in 2012. By 2020, the microgrids market among BRICS nations $4 $3.39 will reach $4.47 billion. $3 $2.57  The BRICS nations, as a whole, are projected to grow at a compound annual growth rate of 25% $1.96 $2 from 2012 to 2020. $1.49 $1.24 $1.04  In 2012, BRICS nations are projected to account for $1 $0.73 $0.87 15% of the global microgrid market. By 2020, they will account for 33% of the global market. $0 2012 2013 2014 2015 2016 2017 2018 2019 20202 [PREMIUM] ZPRYME SMART GRID INSIGHTS Microgrids: The BRICS Opportunity | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org
  • 4. $2,015 How well do you know the BRICS microgrid $1,191 ecosystem? BRICS Market Value Forecast by Country - 2012, 2020 (figure 3, source: Zpryme, in US millions) 2012 2020 $518 $433 $320 $312 $149 $115 $99 $50 China India Brazil Russia South Africa3 [PREMIUM] ZPRYME SMART GRID INSIGHTS Microgrids: The BRICS Opportunity | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org
  • 5. Microgrids incorporate renewable energy solutions, energy in India and South Africa that integrate distributedstorage, and energy management technology into an generation to compensate for disruptions in utility-suppliedintegrated system that manages energy generation, power. Smart mini-grids are very useful for stand-alonetransmission, distribution, and usage on a small scale projects in villages and inaccessible areas. Microgrids notcompared to the current grid system, as it serves a smaller only foster the effective inter-connection and utilization ofbase of local residents. However, this small local nature multiple renewable energy resources, but also help inoffers significant benefits, such as reliability, flexibility, and advancing access to energy to the last mile in the mostincreased security. Key technology has been introduced optimum way by improving the efficiency of the overallto allow widespread adoption of microgrids. system. The PRISMA project in the Amazon village of Cachoeira do Aruã, Brazil is a run-of-the-river micro-hydroBRICS (Brazil, Russia, India, China, and South Africa) nations facility that provides the community with power that isare the fastest growing countries internationally and have distributed via a mini-grid. The project establisheslarge percentages of their population without power. community ownership and management of localThese five nations can benefit from microgrid installation, infrastructure, such as power generating stations, whilethus allowing their rural citizens to experience reliable strengthening small local enterprises that then use thepower for the first time. infrastructure for productive uses which help them in earning an income.In BRICS nations (Brazil, Russia, India, China, and SouthAfrica), the demand for energy, particularly electricity, is Benefits of Microgridsgrowing much more rapidly than the rate of expansion ofconventional electricity grids in the industrialized world. The current electrical generation system, where energyMicrogrids are a cost-effective solution to help meet this flows in one direction from the utility to consumers isrising demand for more power, without increasing carbon becoming obsolete. Outdated transmission lines,emissions. The microgrid market across BRICS nations is inefficient equipment and antiquated software will requirebeing driven by the growing energy demand; the need for a tremendous expense to update, as well as presentreliable power; increasing focus on renewable energy; security and reliability problems. Microgrids provide onerequirement for electrification in rural and inaccessible solution to a more efficient energy system and offer manyareas; and government incentives provided for achieving benefits.energy efficiency and renewable power generation. First, the smaller scale of microgrids offers several benefitsSeveral microgrid projects are coming up across the BRICS including increased efficiency because less energy is lostcountries to provide a more reliable power supply to during the transmission of energy. In a microgrid, energyconsumers. For example, recently, in early 2012, Echelon travels shorter distances from the energy source to theCorporation, announced that it will set up two microgrids customer and serves fewer customers. Thus, overall4 [PREMIUM] ZPRYME SMART GRID INSIGHTS Microgrids: The BRICS Opportunity | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org
  • 6. demand on the transmission infrastructure decreases.Further, the system becomes more reliable and is able torespond more quickly to local demand.In addition, distributed resources are locally controlled andfunction as a single unit. Not only does this optimizeenergy generation, but it also creates energyindependence and encourages the adoption ofrenewable technology to meet clean energyrequirements.Flexibility is also a key benefit of microgrids. Microgrids arearranged in a modular fashion. New components can beadded with minimal problems and the system can beeasily updated and maintained. In addition, thedevelopment of the microgrid is locally controlled, whichmeans local needs are considered when designing themicrogrid. Therefore, transformation of the grid is plannedto meet the needs of the local or regional area.Lastly, microgrids utilizing distributed resources offerimproved security. The microgrid is able to island itself,creating a separation from the main grid and decreasingits vulnerability to outside attacks. This increases both thecyber-security of the grid and its physical security. This isespecially important when valuable resources must bemaintained, such as in hospital or military installations. Inaddition, islanding prevents the local area from beingaffected due to widespread blackouts or other problemsoccurring in the main electrical grid.5 [PREMIUM] ZPRYME SMART GRID INSIGHTS Microgrids: The BRICS Opportunity | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org
  • 7. Global Market Value Forecasts Global and BRICS Market Value Forecast, 2012 – 2020 (table 1, source: Zpryme, in US billions)Market Value 2012 2013 2014 2015 2016 2017 2018 2019 2020 CAGRGlobal Market $4.95 $6.20 $6.90 $7.50 $8.33 $9.57 $10.82 $12.01 $13.40 13%BRICS $0.73 $0.87 $1.04 $1.24 $1.49 $1.96 $2.57 $3.39 $4.47 25%BRICS % of Global Market Europe 15% 14% 15% 17% 18% 20% 24% 28% 33% BRICS Market Value Forecast by Country, 2012 – 2020 (table 2, source: Zpryme, in US millions)Market Value 2012 2013 2014 2015 2016 2017 2018 2019 2020 CAGRCountry Brazil $149 $166 $186 $209 $234 $285 $348 $424 $518 17% Russia $99 $112 $126 $143 $161 $207 $264 $339 $433 20% India $115 $150 $194 $253 $328 $453 $626 $863 $1,191 34% China $320 $384 $461 $553 $664 $876 $1,156 $1,526 $2,015 26% South Africa $50 $59 $71 $86 $103 $135 $179 $236 $312 26%Total $732 $871 $1,039 $1,243 $1,490 $1,956 $2,573 $3,388 $4,468 25% BRICS Market Value by %, 2012 BRICS Market Value by %, 2020 (figure 4, source: Zpryme) (figure 5, source: Zpryme) China India Brazil Russia South Africa China India Brazil Russia South Africa 7% 7% 13% 10% 44% 45% 11% 20% 27% 16%6 [PREMIUM] ZPRYME SMART GRID INSIGHTS Microgrids: The BRICS Opportunity | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org
  • 8. Key Players microgrid market, through its Adaptive Protective System architecture. ABB is also involved in utilizing microgrids toIn the microgrid market, two main types of key players are provide ancillary services for utilities. In addition, ABB hasstrengthening their position. First, large Smart Grid firms are been very active in the Advanced Architecture Programexpanding their product lines to offer products specifically for the European Consortium. ABB is a member of thedesigned for the microgrid market. Small niche firms have steering committee, which develops functions andalso entered the marketplace with products uniquely schemes for microgrids. ABB has experienced success insuited for microgrids. In addition, these two types of firms installing a $16 million microgrid upgrade in Qatar, where ithave collaborated to provide solutions for specific was responsible for reengineering and reinforcing thelocations and projects. existing system to improve the availability and reliability of electricity. In addition, ABB has developed strategicBPL Global was founded in 1983 and has expanded its partnerships with wind and solar manufacturers, as well asoperations to include member firms in 7 countries, acquiring Powercorp, an Australian firm specializing inincluding Africa, China, Brazil and the Middle East. The BPL renewable energy integration.Africa branch offers Intelligent Power Smart GridIntegrated Demand Response Software to design the most Siemens has expanded its position as an electricalcost effective energy microgrid solution based on cost engineering and electronics leader to include globaland other grid conditions. BPL Africa is the only firm on the energy management for microgrids. Siemens viewscontinent to offer a turnkey solution to microgrid microgrids as a central component in the Smart Griddeployment for the remote power market. The solution evolution. Siemens offers energy-efficiency technology forprovides the basic starting components and allows the a microgrid’s consumption, transmission and productionuser to add modules as they need the additional capacity needs. Siemens has been involved in a series ofand can afford the upgrades. BPL Africa has experienced partnerships. Recently, Siemens partnered with Boeing tosuccess in developing microgrid solutions for mining develop microgrid solutions for the Department of Defenseoperations that were totally unconnected from the grid to be use in military installations. In addition, Siemensand had no electricity. In addition, its turnkey solution has partnered with BPL Global to combine demand responsebeen implemented in small villages, providing consistent solutions with distributed generation resources for homesenergy for the first time to the remote locations. BPL and businesses, creating a mini-grid. Siemens has alsoGlobal has had several strategic partnerships that have worked with Viridity Energy and has several otherfurther developed its position in the field including its partnerships and projects underway to further develop itsacquisition of Serveron and a partnership with Siemens. microgrid position.ABB has expanded its position as a transmission anddistribution Smart Grid leader to develop solutions for the7 [PREMIUM] ZPRYME SMART GRID INSIGHTS Microgrids: The BRICS Opportunity | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org
  • 9. Echelon has expanded its position as a leader in network Science Foundation, and Red Hat to provide softwareplatforming to provide solutions for the microgrid market. engineering for the utility, energy, and communicationsEchelon’s microgrid software is able to outline the usage fields.of power by source, delineating power from renewablesources, from the grid, and from back-up power sources. Pareto Energy was founded in 2004 and began operationsThis allows consumers to make choices about their energy focused on creating legislation to enable microgridconsumption, in turn creating a more efficient system. development and deployment. Pareto’s Grid Link productEchelon has announced two projects in India and South overcomes problems with interconnection between theAfrica. Echelon will supply each project with smart meters microgrid and the utility. It solves momentary instabilityfor each residence or business to provide feedback on and energy loss problems experienced when switching toenergy consumption, and provide their software to island mode due to grid difficulty. The main grid is thusprovide energy management capabilities. In addition, shielded from inconsistent distributed generation, andapplications from Echelon’s partners will provide allows for upgrades and improvements to distributedadditional functionality for supply/demand management generation resources. Pareto currently has over $70 millionand automatically switch to backup power if Echelon’s committed to microgrid projects. In addition, Pareto hasNetworked Energy System senses any irregularity. The installed over 20 microgrids, including systems at Howardprojects will not only provide greater efficiency, but also University and for a pilot project in Stamford, Connecticut.will also allow better pricing methods and serve as anexample of an entry-level microgrid market, where back- Lastly, Viridity Energy is a new firm that enables a microgridup generators support the electrical grid in times of need. to achieve a shorter payback period on investments. Viridity’s software consolidates all of the microgrid’s assetsIn addition to large Smart Grid firms expanding into the to allow for comprehensive decision-making. The VPowermicrogrid market, several niche firms have also developed program allows a microgrid to not only balance supplyspecialty products to serve microgrids. Green Energy and demand, but also maximize selling energy back toCorporation has received numerous awards, including the grid. The program manages energy production,being named one of the Top 50 Colorado Firms to Watch. storage, consumption, and distributed resources to avoidGreen Energy Corporation offers a Master Controller peak loads to not only minimize cost, but also maximizeprogram, allowing for monitoring of both energy storage profits. Viridity has worked with Siemens, Drexel University,and distributed generation. Utilizing cutting edge cloud Penn State University, The University of Pennsylvania, PECOcomputing on an open source format, the software Energy, San Diego Gas & Electric, University of San Diego,combines new energy applications and legacy systems, Con Edison and other firms to maximize microgridallowing interoperation that is stable and secure. Green profitability.Energy Corporation has partnered with such companies asthe National Rural Electric Cooperative, the National8 [PREMIUM] ZPRYME SMART GRID INSIGHTS Microgrids: The BRICS Opportunity | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org
  • 10. Challenges & Barriers to the Microgrid Market Compressed Air Energy Storage (CAES) is not implemented as widespread as pumped hydro, but is very popular. ItSeveral factors have created barriers to successful requires either an underground storage space, such as amicrogrid deployment. First, the cost and integration of cavern, or an aboveground storage tank for storage.energy storage has provided a barrier to microgrids. Excess energy is used to compress air and move it to theEnergy storage is absolutely essential to the successful storage space. When it is needed, the air is released andintegration of microgrids. Energy storage allows energy to passes through a turbine, thus producing energy. Energybe captured when excess energy is produced during non- efficiency for CAES systems is typically close to 40% due topeak times and utilized during peak or inconsistent cooling, air compression, and turbine generation losses.periods. Storage systems improve reliability and quality; Because of these losses, additional features are usuallyhowever energy storage options are not cost effective in added to capture the lost energy and produce additionalmost cases. Because of the size and the scope energy from it. CAES systems are expensive to install, butrequirements of microgrids, it is difficult to choose the have a long life cycle, reducing its cost over time.appropriate storage option for each installation. However,recent developments have lowered the cost of some Battery Energy Storage systems have differentstorage options and small-scale applications of energy compositions, come in different sizes and can be used forstorage can be significantly less expensive than previously different purposes. Batteries have been frequently usedavailable. for substation back-up systems and significant research is aimed at improving efficiency and making them morePumped hydro facilities are the most common storage cost effective. One key advantage is the portability ofsolution worldwide, with over 127,000 MW installed batteries, as well as the fact that they can be immediatelyworldwide. Two reservoirs at two different heights are connected and utilized without significant additionalutilized. Excess energy is used to pump water to the upper installation costs. However, the lifetime of battery storagereservoir to be stored until energy is needed. Then the is 2-10 years, after which they must be replaced and safelywater is released and gravity pulls it towards the lower discarded. They can also have high maintenance costs,reservoir, and through a turbine, thus releasing the stored but can operate at 90% efficiency.energy. For it to be successful, the environment must beable to provide for pumped hydro storage (water must be Solar energy integration has also produced significantpresent, etc.). The system is able to come online quickly barriers to microgrid operation. One challenge of solarand typically stores 5-6 hours of energy at capacity. In energy is its distribution nature. Many times solar panelsaddition, it operates at 70-75% capacity and is expensive are spread out and produce small amounts of highlyto install, however its long life cycle makes it more variable power. The energy is then collected at a centralaffordable over the long term. source and then transmitted to energy customers. This process raises technical problems, such as inconsistent9 [PREMIUM] ZPRYME SMART GRID INSIGHTS Microgrids: The BRICS Opportunity | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org
  • 11. voltage and frequency, grounding, protection and reducing the cost of wind turbines. Finally, not all regionsregulation, power quality, and variability caused by are well suited to wind energy production. Some areasvarious weather conditions. Utilities and remote areas have inadequate wind flow for wind technology to be aconsidering installing microgrids must be sure that their feasible option. Because of the expense, the feasibility ofsystems are able to integrate the solar energy, even during producing wind energy needs to be studied before thefluctuations without compromising the grid itself. Research technology is implemented.has developed new technology to both protect the gridfrom variability in production and integrate the distributed Key Microgrid Solutionsresources. In addition, the price of solar photovoltaicpanels has decreased significantly, allowing them to be a Several key technological developments have enabledmore cost efficient option for microgrid use. One final microgrid deployment. GridLink by Pareto Energy providesconsideration for installing solar panels for use in a protection to the main electrical grid from any issues of themicrogrid setting is suitability. A major challenge to microgrid, including variability experienced whenmicrogrids is to implement the right distributed generation islanding, problems when upgrading distributed resources,mix. Not all areas are conducive to solar energy and local energy generation and loads. GridLink allowsproduction and installing the wrong mix can be very costly the utility to be considered as an equal input with all otherand result in not only excess unused materials, but resources. All inputs pass through inverters beforeinefficient energy capacity as well. connecting to the microgrid. This insures consistent power to the microgrid even during times of blackout on theWind integration has presented some similar barriers to main grid, while insuring no impact on the utility systemmicrogrid deployment. Like solar energy, wind energy itself. GridLink has been utilized at many large utilities, asproduction is highly variable, producing intermittent well as Howard University with great success. GridLink haspower. Frequency and voltage are affected by weather proven its success in over 20 microgrid installations, and inand wind conditions. The proper technology must be in overcoming interconnection problems betweenplace to allow a microgrid to utilize wind energy, without microgrids and the main utility system.compromising the electrical system. The microgrid mustbe able to balance the power the wind turbines generate, A second key technology in microgrid deployment is BPLstoring energy over its maximum capacity for later use, Global’s Power SG Integrated Distributed Energywhen wind production declines or load increases. Proper Resources Software (iDER). iDER is a turnkey microgridsoftware programs are the key to effective energy solution that allows end-to-end energy management of allmanagement. New wind technology has been resources. The software allows the main components of adeveloped that has both increased efficiency and microgrid to be set up quickly and for the customer to addlowered the costs for wind technology. Increased components later, as necessary. BPL Global offers aefficiency has improved reliability and safety, while ―unique combination of solutions for the continent in10 [PREMIUM] ZPRYME SMART GRID INSIGHTS Microgrids: The BRICS Opportunity | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org
  • 12. energy efficiency and management, solar energy issues. In addition, energy management strategies can begeneration, renewable energy storage, electrification of tested to determine the most efficient plan before theoff-grid areas with energy islands, electrical network plans are undertaken in the actual system. Poweroptimization via MicroGrid, sustainable solutions to the Analytics’ Paladin program offers superb analytical dataeconomic realities‖, making it a key technological processing that predicts and prevents real time problems,development. making it a key technology in the emerging microgrid market place.HOMER is a microgrid modeling software that analyzesdifferent distributed energy possibilities to provide thedesign for the most efficient microgrid possible, based ona number of different factors, including weather, energyusage, and environmental factors. HOMER stands forHybridization Optimization Model for Electric Renewablesand identifies the most cost effective options forrenewable energy and hybrid renewable microgrids. Ithas been downloaded by 68,000 people in 193 countriesand is used in numerous microgrid projects. It helps utilitiesavoid costly mistakes during renewable energydeployments. HOMER was originally developed for off-grid village power systems, but has been enhanced toconsider new technology options and changes in themicrogrid marketplace.Paladin Live program, by Power Analytics, analyzes datafrom the microgrid to predict possible problems with thesystem. It uses data from the installation of the microgridas baseline data to compare present microgridperformance. It offers users real time data about systemefficiency, and is able to show capacity, reliability, andavailability of the microgrid. This information is able toidentify potential problems and address them before theyaffect the system. In addition, different plans can betested before they are implemented. Upgrades can besimulated before they are made to assess unforeseen11 [PREMIUM] ZPRYME SMART GRID INSIGHTS Microgrids: The BRICS Opportunity | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org
  • 13. BRICS: The Microgrid Opportunity BRICS Microgrids Market Value Forecast CAGR = 25%Developing countries compose 80% of the world’s 2012 to 2020 (in US millions)population, but only comprise 30% of the world’s energy (figure 6, source: Zpryme) $5,000consumption. As the population increases, energydemand will also increase. These developing countries $4,000are improving their standard of living, thus requiring moreenergy. However, many parts of the world are not $3,000connected to a central grid, and rely on individual gas ordiesel generators, or biomass for their energy needs. $2,000 $1,000The electrical grid is centralized and it is either costprohibitive to connect these locations or the population is $0too disbursed to allow for connectivity. Meeting the 2012 2013 2014 2015 2016 2017 2018 2019 2020energy needs for this segment of the population aroundthe world presents a huge opportunity. The BRICS nations Brazil Russia India China South Africa(Brazil, Russia, India, China, and South Africa) are the fivefastest growing segments of this market. The rural BRICS Nations: Driverscommunities that are not connected to any electricalsystem seek an alternative to the traditional energy Demand for energy, specifically electricity, in BRICSsystem. They seek access to affordable, reliable energy. nations is growing much more rapidly than the rate ofRenewable energy utilized in microgrids can meet the expansion of conventional electricity grids in theneeds of these communities in a sustainable manner. industrialized world. Demand for energy in these countriesRenewables offer a more reliable option than traditional is expected to grow in tandem with projected increases inconnectivity, as well as providing access to water for human population and rising living standards among theirrigation purposes. Thus, microgrids in BRICS will improve chronically poor. Microgrids are ideally suited to help meetthe overall way of life for remote locations. this rising demand for more power, without increasing carbon emissions. The growing demand for energy;In 2012, the combined microgrids market value for BRICS increasing focus on renewable energy; governmentnations is projected to reach $0.73 billion in 2012. By 2020, incentives provided for achieving energy efficiency andthe microgrids market among BRICS will reach $4.47 billion. renewable power generation; unreliable power qualityThe BRICS market is projected to grow at a compound and power shortages; and poor rural electrificationannual growth rate of 25% from 2012 to 2020. systems are driving the microgrid market across Brazil, Russia, India, China, and South Africa.12 [PREMIUM] ZPRYME SMART GRID INSIGHTS Microgrids: The BRICS Opportunity | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org
  • 14. providing many rural people access to both light andMicrogrids act as a cost-effective and viable option in the power for the first time in their lives.2developing world which is coping with an unreliablepower supply. Several microgrid projects are coming up Another microgrid project is being undertaken for insularacross the BRICS nations to provide consumers with a more and remote localities in the Asia-Pacific Economicdependable power supply system. For example, recently, Cooperation (APEC) economies. Led by the Russianin early 2012, Echelon Corporation (an American Federation, the objective of the project is to maximize thecompany which designs control networks to connect economic and environmental effect of deployment of themachines and other electronic devices, for the purposes Smart Grid technology in insular and remote localities asof sensing, monitoring and control), announced that it will these areas experience bigger challenges in securingset up two microgrids in India and South Africa that reliable and efficient energy supply.3integrate distributed generation to compensate fordisruptions in utility-supplied power. The model microgrid Together with local partners, the local utility, and the localdeployments are at Palm Meadows in Hyderabad, India, community, Winrock International, a global nonprofitand Clearwater Mall in Johannesburg, South Africa. Palm organization, in 2005 began the installation of the firstMeadows is an 86-acre integrated gated community with PRISMA project in the Amazon village of Cachoeira do335 homes and residential services. Clearwater Mall in Aruã, Brazil. A run-of-river micro-hydro facility the projectJohannesburg is a retail building with more than 240 provides the community with power that is distributed viastores.1 a mini-grid – all governed under simplified contracts between the community and the electric utility. One ofMicrogrids also help in providing electricity in de-electrified the activities undertaken under this project is to promotevillages. Smart mini-grids are very useful for stand-alone ecotourism, raising global awareness of the environmentalprojects in villages and inaccessible areas. Microgrids not challenges that this region faces each day.only foster the effective inter-connection and utilization ofmultiple renewable energy resources but also help in The PRISMA Cachoeira do Aruã project in Brazil establishesadvancing access to energy to the last mile in the most community ownership and management of localoptimum way by improving the efficiency of the overall infrastructure, such as power generating stations, whilesystem. In one of India’s poorest states, Uttar Pradesh, the strengthening small local enterprises that then use thefounders of Mera Gao Micro Grid Power build and infrastructure for productive uses which help them inoperate solar-powered microgrids to provide low-cost earning an income. In the case of electricity, thelighting and mobile phone charging to village houses, community ―sells‖ the power to the local utility (which in Brazil holds a monopoly on power distribution) and 2 Tree Hugger1 Solar Feeds 3 EGNRET13 [PREMIUM] ZPRYME SMART GRID INSIGHTS Microgrids: The BRICS Opportunity | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org
  • 15. villagers manage the local mini-grid under a contract to Major End-Use Industries for Microgridsthe power company. The electric utility provides technicalsupport if required, so villagers are not completely on their The microgrid system has a great potential in largeown.4 commercial and industrial complexes, hospitals, shopping malls/ complexes, apartments, residential complexes,To supply electricity to those areas that have rare educational institutions, remote un-electrified as well aspopulation, inconvenient traffic and those that are unable electrified locations to ensure maximum flexibility, reliabilityto be covered by the main power grid, Beijing Huadian and safety.6Tianren Power Control Technology Co., Ltd. (Thecompany’s business focuses on energy saving, BRICS Microgrids Market Forecast by End-Use Industryenvironmental protection, new energy and innovation All 5 Countries Combinedtransformation of traditional industries.) started a wind- 2015 and 2020 (in US millions)solar hybrid microgrid project in Jijiao Village, Chawu (figure 7, source: Zpryme)Townership, Lazi County, Rikaze, Tibet. On December 4,2011, the project was formally put into production.5 $1,340 Institutional $435Government incentives for energy efficiency andrenewable power generation also stimulate investment in Community/Industrial $894advanced energy infrastructure. Husk Power Systems, an $199Indian firm, uses second-world-war-era diesel generators $849 2020fitted with biomass gasifiers that can use rice husks, which Off-grid $149are otherwise left to rot, as a feedstock. Wires are strung 2015on cheap, easy-to-repair bamboo poles to provide power $626 Community/Utilityto around 600 families for each generator. By 2010, Husk $186Power had established five mini-grids in Bihar, where rice isa staple crop. Consumers pay door-to-door collectors Military $536 $174upfront for power, and Husk collects a 30 percentgovernment subsidy for construction costs. Its pilot plants $223were profitable within six months, so its model is Other $99sustainable. $0 $500 $1,000 $1,5004 Winrock5 KJT 6 The Economic Times14 [PREMIUM] ZPRYME SMART GRID INSIGHTS Microgrids: The BRICS Opportunity | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org
  • 16. Recently, in early 2012, China’s Xiamen University Systems, Saran Renewable Energy, Mera Gaon Micro Gridpartnered with leading multinational technology providers Power, and Naturetech Infra all operate microgrids on ato build the country’s first direct current microgrid. commercial basis in India.Significant changes brought by the new DC microgridinclude integrating renewable energy generation and Certain commercial and industrial environments have astorage batteries with building electrical loads via mobile critical need for a constant power supply and cannotand web-based energy management and control afford brownouts or blackouts – research labs, dataapplications; changing the way Chinese campuses and centers, semiconductor manufacturing, and infrastructurebuilding complexes manage, control and consume deemed critical to national security. Furthermore, as theenergy; and for reducing building energy consumption, reliance on modern communication technology increaseswhich could run up to 20% of 2020 global coal (wireless, cloud computing, etc.), power systems are alsoconsumption if left unchecked.7 Use of micro grids at mine becoming vulnerable to cyber-attacks and hackers.sites is also gaining popularity due to an expectedupswing in interest in shifting to more sustainable energy In some specific customer segments, such as the militarystrategies for mine sites controlled by large multinationals. and research labs, there is significant value in a secureGlobally, nearly 75% of existing mines are remote network. Microgrid power can provide greater security foroperations, though very few deploy renewable energy ground army troops in remote areas. The technologygeneration.8 would work very much like a portable power plant, providing and storing enough energy to power smaller,Microgrids have been specifically helpful to people mostly communications systems, in very remote locationsrunning small and medium enterprises, particularly in rural where re-supplying fuel is difficult or dangerous. Hotels,areas of the BRICS nations. For example, to further extend one of the most intensive power users, can opt to developcentralized grid electricity to remote rural areas and to microgrids that incorporate solar, wind, hydro, geothermaladdress the increasing demand and supply gap in and other technologies to reduce the need for grid powerelectrified rural areas, The Energy and Resources Institute and for uninterrupted power supply. Hospitals are(TERI), in India, has initiated a strategy to set up solar particularly well suited for smart microgrids as they oftenmicrogrids that can cater to a segment of households or have a multi-building campus lay-out and require reliablesmall enterprises (shops) in a village. Upscaling and and constant power supply.promoting this endeavor would serve two purposes: i) toprovide access to quality lighting in rural areas, and ii) toenhance the income of both the entrepreneurs and end-users.9 Organizations such as Desi Power, Husk Power7 Engerati8 The Smart Grid Observer9 SEI International15 [PREMIUM] ZPRYME SMART GRID INSIGHTS Microgrids: The BRICS Opportunity | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org
  • 17. Brazil ranching. To stop deforestation, residents must have a stake in remaining in their villages, generating income throughBrazil has a population of approximately 195 million people environmentally sustainable livelihoods. Therefore, providingand is the fastest growing country on the planet. the area with electricity is significant. Off-grid solutions areHowever, the Northern Amazonian Para region only has the only practical way to bring power to remote areas in0.8% of citizens with access to power. Isolated grids exist in the Amazon.10the Amazon that use diesel powered generators forenergy production; however energy production is limited Brazil: Microgrid Market Forecastdue to the cost of fuel. In addition, the overall grid isunable to meet the country’s needs, as 91 large blackouts From 2012 to 2020, the Brazil market is projected to growwere experienced in 2011. The largest blackout left 50 from $149 million to $518 million with a compound annualmillion people in 8 states without power overnight. Brazil is growth rate of 17%.particularly suited to PV arrays. In addition, manylocations are close to the Amazon River, making Brazil Microgrids Market Value Forecasthydropower incorporation an attractive option. Several CAGR = 17%projects have successfully tested microgrids in the Amazon 2012 to 2020 (in US millions) (figure 8, source: Zpryme)region. In Coelba, the Sao Paulo Research Foundation $600installed 10,133 Photovoltaic systems for free to its $518residents, who only had to pay for energy consumption $500 $424after installation. Ilha de Ferradura installed PV for 6fishermen’s homes successfully in demonstrating Brazil’s $400 $348microgrid potential, in both large and small installations. $285 $300 $234 $209Brazil: Drivers $186 $200 $166 $149Due to vast sparsely populated areas, Brazil faces $100particular difficulty in providing universal access toelectricity, as required by law. In Brazil, about 23 million $0people do not have access to electricity. The highest 2012 2013 2014 2015 2016 2017 2018 2019 2020concentrations are in the Amazon, which makes up 45% ofthe area of the nation, but only 3% of the population. Ifmodern energy services cannot be provided in the Amazonregion, the local population will continue to abandon theforest for nearby cities, leaving vast areas to predatory 10 SolarServer16 [PREMIUM] ZPRYME SMART GRID INSIGHTS Microgrids: The BRICS Opportunity | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org
  • 18. Brazil: Projects To pay for the program, Brazil established three funds: The Energy Development Fund (Conta de DesenvolvimentoLight for All de Energia, CDE); the Global Reversion Reserve (Reserva Global de Reversao, RGR), and the Fuel ConsumptionIn 2003, the Government of Brazil (GOB) launched the Fund (Conta de Consumo de Combustivel, CCC) intoprogram Luz Para Todos (LPT) or ―Light for All‖ to subsidize which tax revenues are designated. These funds provideuniversal access to electricity by: the subsidies for both implementation and operation of the program, and to offset the costs of individual electrical  Extending and establishing connections to the consumption in the most remote regions. national electrical grid. Overall, LPT was estimated to cost R$20 billion, of which  Establishing a small number of off-grid distributed R$14.3 was to be provided by the federal government. The energy pilot systems, including photovoltaic solar rest was to be funded by state governments (R$2.3 billion) and wind power systems; and hybrid systems of and by power companies (R$3.4 billion). By 2010, the solar, wind and diesel. government had R$13.5 billion in contracts, funded by the CDE and RGR. State governments had spent R$2.081The program was implemented in 2004, extended in 2008, billion and power companies, R$3.164 billion.and again in 2010. By May 2009, electrical services werebeing provided to 10 million people through 2 million new The second phase of LPT, extended in March 2010 to endconnections to the national electrical grid. in 2014, foresees a total investment of R$5.5 billion, and the government is likely to extend the RGR, set to expire inA total of 883,000 km of new electric cable had been 2010 and which has R$7 billion available, to cover the nextstrung over 4.6 million new poles to bring transmission lines phase.and power switches to rural communities. Considered asuccess by the government, the program was extended in Program costs per installed electrical connection rose over2010 to 2011, to add 310,000 new households, and is time as more distant areas were connected to the grid.expected to be extended until 2014 to add an additional The average cost per connection in 2004 was R$4,300. By495,000 households. In total, the objective of this phase of 2010, connection costs had risen to between R$7,000 tothe program is to bring energy services to approximately R$9,000 per connection.11810,000 new households in the remotest areas of thecountry, including the greater Amazon rainforest inBrazilian territory. 11www.actionaidusa.org/assets/pdfs/climate_change/Access_to_Energy_for_the_Poor_2011.p df17 [PREMIUM] ZPRYME SMART GRID INSIGHTS Microgrids: The BRICS Opportunity | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org
  • 19. CEMIG’s Microgrid Project Other partners are expected to be incorporated to the project depending on the choice of the location for theCISB approved a microgrid project to distribute electric implementation of the infrastructure. They could be localenergy for CEMIG in an urban area of Belo Horizonte.12 This providers of infrastructure, telecommunications and gas.project will be implemented in three phases. Also, other companies from the CEMIG group might join, such as CEMIG TELECOM and GASMIG.14The first phase involves FAPEMIG and CEMIG together withthe Federal University of Minas Geris (UFMG) and KTH RoyalInstitute of Technology, who have proposed to studydecentralized energy production and distributionarchitecture.13 The initiative is considered strategic and willbe funded directly by Cemig.A second group of partners, formed by the companiesGAS ENERGY and CONCERT, will have the task of installinga distributed generation plant. This plant will serve to studythe co-generation of energy from the binomial natural gasand sunlight. The plant should be initially sized to satisfy thestudy of co-generation and generation necessary for theexistence of a ―microgrid‖, but it should be designed in away that will allow modular expansion, in order tocorrespond to the suggested business models that will alsobe studied.The third group is formed by the research institute LACTECand the companies HITACHI and CONCERT. They will beresponsible for the technical implementation of thedistributed generation grid and for all the issues related tothe engineering tasks.12 www.kth.se/en/studies/why/focus-regions/brazil/additional-collaborations-with-brazil-1.29614113 www.kth.se/en/studies/why/focus-regions/brazil/additional-collaborations-with-brazil-1.296141 14Microfoundations of Open Innovation (Sao Paulo, 2012)18 [PREMIUM] ZPRYME SMART GRID INSIGHTS Microgrids: The BRICS Opportunity | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org
  • 20. Russia shortfall in funding for the renovation of the electric power sector assets for about 10-15 years in the early 90s, Russia isIn Russia, over 10 million people are not connected to the now seeing critical wear of the substation equipment fleet.grid and are using diesel or gas powered generators to The guideline equipment life (25 years) has ended formeet their energy needs. Fifty percent of these generators 54.7% of these assets and total excess life (35 years) hasare not working due to either fuel costs or delivery issues. been surpassed for 22.2% of equipment.The areas least connected are Siberia, the Northern andFar Eastern areas of Russia. Because of the size of Russia Considering the longer lifetime for HV power lines, onand its diverse resources, renewable energies are average 40 years, the wear of power transmission lineparticularly attractive and cost effective. In addition, equipment comprises the following – guideline life (40Russia’s energy strategy until 2020 includes realizing years) has ended for 29.2%, total excess life (50 years) hassustainable development. Several small-scale wind been surpassed for 8.9% of equipment.16 However, Russiaprojects using wind-diesel hybridization have saved 40-80% possesses favorable conditions for the development ofof total energy cost with a 3-4 year payback period. renewable energy sources, largely due to its size andHydropower has been successfully utilized in areas located range of geographic features.by rivers. Solar also offers potential, especially in Southernareas. The very strong renewable energy potential, Russia has huge potential markets for off-grid electricitycombined with the huge number of isolated areas lacking systems based on renewable energy. The renewablegrid power create a tremendous microgrid opportunity in potential is especially applicable in some of the moreRussia. remote parts of Russia that are not connected to the grid. In many isolated settlements, renewables can be the mostRussia: Drivers economic, and perhaps even the only way to provide electricity and heat to consumers. Geothermal resourcesIt is estimated that approximately five million farms and ten in the Far East or North Caucasus, or hydro from the manymillion people in Russia are not connected to the watersheds, or other renewables such as wind and solarelectricity grid. Furthermore, an estimated 45 percent of all energy could potentially serve remote populations.17energy in Russia is lost in production, transport, transmissionor inefficient consumption—much of this due to artificiallylow prices which reduce incentives to improve efficiency.According to several estimates, Russia could save aroundhalf of the energy it currently uses.15 Furthermore, due to a 16 PowerTec15 MDPI 17 EBRD19 [PREMIUM] ZPRYME SMART GRID INSIGHTS Microgrids: The BRICS Opportunity | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org
  • 21. Russia: Microgrid Market Forecast build a self-contained diesel-solar power unit, the first of its kind in Russia. The companies plan to build the pilot hybridFrom 2012 to 2020, the Russian market is projected to grow power station with a capacity of over 100 KW, 70% offrom $99 million to $433 million with a compound annual which is to come from solar generation, it said in agrowth rate of 20%. statement. The company did not provide a timeframe for the work to be completed. Use of solar technology is Russia Microgrids Market Value Forecast limited in Russia, which mainly develops conventional CAGR = 20% energy resources. But the companies believe that 2012 to 2020 (in US millions) development of diesel-solar power generation "is a$500 (figure 9, source: Zpryme) technically and economically viable solution for Russian $433 regions with high levels of solar radiation," said Michael Lifshitz, CEO of Rosnanos subsidiary Rotek.$400 $339 In particular, he mentioned southern regions of Russia,$300 $264 southeastern Siberia, the east Siberian Republic of Sakha $207 (Yakutia) and far eastern regions, where diesel generation$200 $161 costs Rb30-40 kWh (around $1/kWh).18 $143 $126 $99 $112$100 Russia: Solar Power Station In 2010, Russias high-tech companies Rusnano and $0 2012 2013 2014 2015 2016 2017 2018 2019 2020 Renova announced plans to build the countrys first industrial solar power station near the Black Sea. The 12.3 megawatt station will be built in the spa resort of KislovodskRussia: Projects by the companies joint venture Khevel. "This is a breakthrough into a different dimension," Rusnano CEORussia has included microgrids in the Energy Smart Anatoly Chubais told an innovation forum in Moscow. TheCommunities Initiative Smart Grid pillar. The plan, which will $97 million deal was sealed by Khevel CEO Yevgenybe implemented in 2012, will pilot smart/micro grid projects Zagorodny and Stavropol region Governor Valeryfor insular and remote localities in APEC economies. Gayevsky. Swiss-made thin-film solar panels will be used in the construction. The station may start operating as soonRenova and Rosnano Project as 2012, Zagorodny said.19Russias Renova holding company and state-runnanotechnology company Rosnano plan to develop and 18 www.renova.ru/en/press-center/publications/15/1964/ 19 ww.solardaily.com/reports/Russia_To_Build_Its_First_Industrial_Solar_Power_Station_999.html20 [PREMIUM] ZPRYME SMART GRID INSIGHTS Microgrids: The BRICS Opportunity | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org
  • 22. India Moreover, approximately 30 percent of India’s generated power is lost in transmission.About 115 million households in rural areas lack gridaccess while 250,000 villages connected to the grid have Distribution is the weakest link of India’s power supplyfrequent connectivity issues. That is over 60% of the total chain as it faces substantial technical losses (because ofpopulation. Rural electrification has been identified as a overloading of transformers and conductors, for instance)priority by the Indian government. Where the grid cannot and commercial losses of electricity (because of lowbe connected, the government has authorized distributed metering efficiency, poor billing and collection, large-networks to be established. Solar energy offers tremendous scale theft of power). Furthermore, lack of transmissionmarket potential for India. Several projects have shown and distribution of power to less densely populated areasthe potential of the market. which are located far away from the power generating stations is the major reason for not being able to achieveThe New Energy and Industrial Technology Development 100 percent electrification in the country.Organization of Japan installed 6 MW PV solar arrays atthe Neemrana Industrial Park to demonstrate efficiency of In India, about 70% of the population lives in rural areas. Incontrol technology and benefits of clean energy. 2010, it was estimated that 48 percent of rural householdsGreenpeace India has also released a report proposing were un-electrified nationally leaving approximately 400clusters of microgrids be installed to support the electrical million people without electricity. Hence it is necessary togrid. Bihur is used as an example of how an area with a use energy sources which can be decentralized to supplysubstantial energy deficit can be an area of energy power to these households. Thus, India can leverage theirsurplus through microgrid deployment. Thus the microgrid abundant renewable energy sources such as wind, solar,market in India holds tremendous potential for future geothermal energy, and biomass to deploy microgrids todevelopment. meet their pressing energy needs.20India: DriversElectricity consumption in India was about 543 KWh/capitain 2009, among the lowest in the world. Although India hasconsiderably improved its generating capacity, it still hasdifficulty in meeting demand and there are persistentpower shortages which constrain India’s economicgrowth. With the development of the industrial andcommercial sectors as well as the wider use of electricalequipment, electricity demand keeps increasing. 20 TERI21 [PREMIUM] ZPRYME SMART GRID INSIGHTS Microgrids: The BRICS Opportunity | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org
  • 23. India: Microgrid Market Forecast distributes power through a micro grid, approximately 0.75 to 1 km in length. An electronics company, DD Solar 23From 2012 to 2020, India’s market is projected to grow from India Pvt. Ltd (which works under the banner of the Bergen$115 million to $1,191 million with a compound annual Group) has provided the technical know-how for thisgrowth rate of 34%. project. India Microgrids Market Value Forecast There are 60 solar panels in the plant, each one producing CAGR = 34% 145 watts of power. A battery bank consisting of 24 cells of 2012 to 2020 (in US millions) two volts each provides the power back up for 4 to 5$1,400 (figure 10, source: Zpryme) cloudy or rainy days, when there is no sun.21 $1,191$1,200 The project was conceived, managed and financed by Scatec Solar at the cost of Rs 5 million (US$1=Rs 46.6).$1,000 $863 Delhi-based NGO, Development Alternatives (DA), was $800 engaged to identify the beneficiary villages.22 $626 $600 Azure Power to Asses Solar Powered Microgrids (Intl) $453 $400 $328 $253 India-based independent power producer Azure Power $194 $200 $115 $150 has been awarded a grant from the U.S. Trade and Development Agency (USTDA) to assess the development $0 2012 2013 2014 2015 2016 2017 2018 2019 2020 and accelerate adoption of solar power in rural India. The $476,670 grant will fund a feasibility study on two 500 kW microgrid solar photovoltaic power generation pilotIndia: Projects projects in the states of Gujarat and Chhattisgarh. Having spearheaded the national initiative of grid-connectedNorthern India solar power projects that are over 1 MW in capacity, Azure Power will, with this study, open up the potential ofNorway-based company Scatec Solar decided to set up electrifying rural India through solar powered microgrids.an 8.7 kilowatt power plant in Rampura. Assisted by Following the study, Azure aims to set up over 100Development Alternatives, an NGO working locally, the microgrid solar systems, with each system covering ancommunity in this village was mobilized to take charge of average of 2-3 acres of rural land which would generateperhaps India’s first community-managed solar powerplant. As a result, since January 26, 2009, this village has 21www.actionaidusa.org/assets/pdfs/climate_change/Access_to_Energy_for_the_Poor_2011.pnot been without power for a single day. The plant df 22 www.smeworld.org/story/features-108/solar-power-at-everyones-doorstep-234.php22 [PREMIUM] ZPRYME SMART GRID INSIGHTS Microgrids: The BRICS Opportunity | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org
  • 24. sufficient power to electrify approximately 800-1,000villages with little or no connectivity to existing electrical The Skynet software interfaces with the NES systemgrids. software and creates a bill for the customer that reflects the customers actual use of lower cost grid power andThe USTDA India mission aims to further development of more expensive locally generated power. Customers haveprojects that have a positive economic, social and the option of reducing usage at times when the moreenvironmental impact while promoting exports of US to expensive energy is being supplied. The Palm MeadowsIndia. The grants provided by USTDA support the initiation micro grid is providing reliable service even duringof such projects and bring them close to realization. In this frequent utility grid outages and enabling the customer tolight, the benefits of solar power are obvious and make intelligent trade-offs between comfort and cost.25imperative. USTDA helps companies create US jobsthrough the export of US goods and services for prioritydevelopment projects in emerging economies. AzurePower is claiming to be Indias first independent solarservice provider offers clean and affordable solar energyto its customers with minimum upfront cost and ongoingoperational expenses.23Southern IndiaEchelon Corporation has successfully deployed micro gridinstallations in an 86-acre integrated gated communitywith 335 homes and residential services at Palm Meadowsin Hyderabad. Palm Meadows runs diesel generators andseeks to incorporate solar power in the future to its microgrid.24 Echelons has equipped the residences with smartmeters that connect into data concentrators atdistribution transformers and feed near real-timeinformation into the companys Networked Energy Systems(NES) software. Grene Robotics Skynet managementapplication automatically turns on local generation ifutility-delivered power is inadequate.23 epoverviews.com/articles/visitor.php?keyword=Micro-Grid www.pv-magazine.com/news/details/beitrag/a-growing-global-smart-grid- 2524 www.echelon.com/company/news-room/2012/microgrids-india-south-africa.htm market_100006258/#axzz1xsuXXnV623 [PREMIUM] ZPRYME SMART GRID INSIGHTS Microgrids: The BRICS Opportunity | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org
  • 25. China eight million.26 The massive size of the country in terms of population means that still a large number of individuals,In China, remote regions experience power supply issues equal to the total population of countries such as Swedenwhere the grid cannot be extended due to the expense or Austria, do not have access to electricity.of extending the electrical grid. Energy consumption was18% in 2005 in rural areas, especially in central and western As of 2012, some five million Chinese people living inareas. China is dedicated to renewable energy remote villages in mountainous or border areas areexpansion and has 8 completed pilot projects, with many currently without electricity, and the government hasmore underway. One such project was completed in vowed to extend electricity services to such groups by theZuo’anmen at Beijing City, where 50 kWp PV, 30 kW end of 2015. According to the annual social responsibilitymicroturbines, 72 kWh energy storage was installed. Other report of the State Grid Corporation of China (SGCC), themicrogrids were installed in the Henan Province, in Tiajin countrys largest power supplier, Chinas urban residentsCity, Mongolia, Foshan City, and Foshan Island. These endured an average of 6.92 hours of blackouts, while ruralprojects have had tremendous success and focused households experienced an average of 29.35 hours ofmainly on PV and wind energy, as well as storage. China blackouts in 2011. SGCC has pledged to shorten therealizes that microgrids are an important part of the periods of electricity cut-offs to 5.71 hours for urban citizenscountry’s Smart Grid and is also related to national and 23.7 hours for rural residents through grid upgradesdevelopment strategies, further highlighting the microgrid and renovations.27opportunity presented in China. In addition,governmental support for microgrid development may Additionally, energy consumption efficiency is very low inprovide additional incentives to develop microgrids in China, i.e. the amount of energy consumed per unit ofremote regions, thus extending reliable energy to its economic output is considerably higher than the worldcitizens. average.28 Microgrid systems thus offer tremendous opportunities to develop the power system in China withChina: Drivers investments focused on increasing capacity, reliability, efficiency, and integration of renewable energy.Being the largest country in East Asia and the mostpopulous in the world, China’s rapidly growing economy State level projects have already been initiated in Chinacreated a significant increase in energy consumption, as to encourage and support universities and institutions thatwell as a rise in harmful emissions and power shortages conduct research on the use of microgrid systems.over a very short period of 60 years. The number of people Furthermore, microgrid systems may represent the bestlacking access to electricity in China in 2009 was around solution to provide electricity to those rural areas, 26 China Europe International Business School 27 China.Org.cn 28 National University of Singapore24 [PREMIUM] ZPRYME SMART GRID INSIGHTS Microgrids: The BRICS Opportunity | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org
  • 26. especially in the Western regions, where the grid extension China: Projectsis not feasible and off-grid applications are required. This isthe sector where the new renewable energies such as Xiamen Direct-Current Microgridwind and solar are expected to play a key role bybecoming the most appropriate solution in order to The Haixi International New Energy Industry Expo andachieve the Central government’s goal of a full rural Forum, Xiamen University, Nextek Power Systems, Peopleelectrification before 2020. Power Company, Canadian Solar, Intel Corporation and Lawrence Berkeley National Laboratory (LBNL) announcedChina: Microgrid Market Forecast a ground-breaking alliance to construct and manage direct-current microgrids at the School of Energy ResearchFrom 2012 to 2020, China’s market is projected to grow in Xiamen University (SER-XMU). This microgrid will becomefrom $320 million to $2,015 million with a compound operational this year and will make Xiamen Universityannual growth rate of 26%. Chinas first direct-current powered commercial building, and will serve as a global showcase for distributed direct- China Microgrids Market Value Forecast current microgrid innovation and commercialization. CAGR = 26% 2012 to 2020 (in US millions) The Xiamen Universitys direct-current microgrid could$2,500 (figure 11, source: Zpryme) change the way Chinese campuses and building complexes manage, control and consume energy by $2,015 directly integrating renewable energy generation and$2,000 storage batteries with building electrical loads through $1,526 one-touch mobile and web-based energy management$1,500 and control applications. This change is significant $1,156 because of Chinese building energy consumption.$1,000 $876 $664 Nextek Power Systems will introduce the first Direct $553 $461 Coupling(R) microgrid in mainland China that will manage $500 $320 $384 and support diverse energy loads, such as direct-current lighting, air conditioning, data centers, electrical vehicle $0 2012 2013 2014 2015 2016 2017 2018 2019 2020 charging and building plug loads. People Power Company will provide its award-winning, cloud-based energy management, control and behavioral analytics applications that will enable building managers to control and manage buildings loads. LBNL will develop methods25 [PREMIUM] ZPRYME SMART GRID INSIGHTS Microgrids: The BRICS Opportunity | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org
  • 27. and algorithms for the optimal equipment choice and The Guishan offshore wind farm demonstration project isoperation of direct-current microgrids. Canadian Solar will led by China Southern Power Grid and will require a totalprovide customized solar panels for this rooftop solar investment of 4.45 billion yuan and 900 million yuan ofsystem and Intel will provide technical expertise and working capital.advisory on this research. The project comprises the building of 198 MW of offshoreThe School of Energy Research in Xiamen University wind power installed capacity, an island smart microgrid,conducts research and develops technologies in a power transmission network, monitoring andAdvanced Nuclear Energy, Solar Energy, Chemical management systems, and a new energy testing center.Energy, Bio-energy, Energy Efficiency Engineering and Construction is scheduled to start in 2012, and the facilitiesEnergy Economics. A 150kW solar system will be deployed are expected to be completed and put into operations byon the rooftop of an engineering building. The School of 2014.30Energy Research will work with partners to integrate state-of-the-art technologies into a showcase for energy According to the company, the Guishan demonstrationefficiency and a platform for developing renewable project is in line with government policy, and has a break-energy applications. even period of 11 years, while the internal rate of return is eight percent. In the meantime, Guangdong PowerThe new Chinese building energy codes call for at least 50 forecasts a 40-60 percent year-on-year drop in 2011 netpercent energy savings at less than a 10 percent cost profit attributable to shareholders to between 306 millionincrease, compared to existing building costs. DC yuan and 459 million yuan due to the increase in coalmicrogrids provide an option to achieve these prices. The magnitude of the two adjustments made torequirements because of the clean renewable energy power prices could not match the rise in coal prices,adoption and behavioral energy building management added the company.31controls that reduce energy consumption, significantlyincrease building efficiency and improve occupantcomfort and productivity. 29Guangdong Electric Power DevelopmentGuangdong Electric Power Development plans to invest inan offshore wind farm demonstration project nearGuishan, Zhuhai, in order to improve its offshore wind farmresearch and development capabilities, sources reported. 30 en.sxcoal.com/69141/NewsShow.html29 www.reuters.com/article/2012/03/19/idUS170454+19-Mar-2012+MW20120319 31 www.capitalvue.com/home/CE-news/inset/@10063/post/646545326 [PREMIUM] ZPRYME SMART GRID INSIGHTS Microgrids: The BRICS Opportunity | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org
  • 28. South Africa in 2009, 3.4 million households in South Africa did not have access to electricity. About half (1.7 million) of theseIn South Africa, over 30% of the population uses paraffin households lived in informal settlements.and biomass to meet its energy needs. Althoughrenewable energy is less expensive in the long term than South Africa also experiences major power shortages withdiesel, many villages are unable to pay the initial rolling blackouts on a regular basis. In addition, totalinvestment. Once the initial investment is made, electricity losses (includes system losses and theft) othermicrogrids provide a cost effective solution for South than technical varied between 10% and 15% in 2009.32Africa’s energy needs. Solar, biomass, and hydropower Therefore, implementing a rock solid energy controlare the most promising renewable energy options. networking platform is of utmost importance. Studies inHowever, some areas are not suited for all three and the South Africa indicate that off-grid PV solutions are often farHOMER software has been able to be successfully used to more cost-effective than current ways of meeting powerdetermine the most appropriate and cost effective needs, and in many areas can be an extension of theoptions in South Africa. Solar Aid has been installing PV existing electric grid.33panels on schools and community facilities. In addition, astudy was performed on Tukakgomo to determine thefeasibility of a microgrid system for 30 households. Finally,Solea Renewables has developed a small scale PVmicrogrid for a mining operation that was previouslywithout power, further demonstrating the huge potentialof implementing microgrids for the country’s remoteenergy needs.South Africa: DriversIn South Africa, about 22 million people, that is 45% of thepopulation of the nation lacks electricity. Theelectrification rate of South Africa was 75% in 2009.(Electrification is registered as electrification of householdsand not as the number of people). However, there is agreat variation in the electrification rate between theprovinces, with Eastern Cape being mainly a rural areaand having the lowest electrification rate (60%) andWestern Cape having the highest rate (86%). Furthermore, 32 IEA 33 SolarServer27 [PREMIUM] ZPRYME SMART GRID INSIGHTS Microgrids: The BRICS Opportunity | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org
  • 29. South Africa: Microgrid Market Forecast lights and a cell phone charger- this is the basic system. What distinguishes this system from others is that it has theFrom 2012 to 2020, South Africa’s market is projected to ability to accommodate additional appliances such as agrow from $50 million to $312 million with a compound TV and DVD, a laptop charger, and even a fridge if solarannual growth rate of 25%. and battery capacity is also extended. All these South Africa Microgrids Market Value Forecast appliances can easily plug into the basic system, and they CAGR = 25% all operate on a 12volt current. 2012 to 2020 (in US millions)$400 (figure 12, source: Zpryme) This means that nobody will be endangered or shocked by the system that is ideally suited for installation at informal $312 settlements. Indeed this DC microgrid system was donated$300 and installed last year, as reported in the local Sedgefield $236 Edge of 16 November – at the home of local Fundiso Mbana. The purpose of the installation was to verify that$200 $179 the DC microgrid could indeed live up to its claims, which $135 it indeed has done! We had trouble free operation, $103 replaced one bulb, and have a happy customer.$100 $86 $71 $50 $59 The progress of this project can be summarized follows: $0 2012 2013 2014 2015 2016 2017 2018 2019 2020  The DC microgrid is now a well proven sustainable solution for informal settlements. It is a viable energisation solution to grid failed rural, urban andSouth Africa: Projects peri-urban communities in South Africa, Africa and even the rest of the world.DC Microgrid in Sedgefield, South Africa  Fundiso and many others regard the DC microgridSpecialized Solar Systems (SSS), being a local company in system as an ideal easy to install solution that takesGeorge, has for a period of six months been co-operating only 45 minutes to set up.with a Sedgefield based NGO called SANCO. The purposehas been to demonstrate that a complete home  The public of Sedgefield have come out in supportelectrification system that is powered by alternative of the idea and would like to see this plan put toenergy, can be installed in a matter of minutes, and action now, instead of waiting another 3-4provides a long term solution. A solar panel and a battery years(who knows) for grid electrification. Currentlydrive what is called the DC microgrid system that provides28 [PREMIUM] ZPRYME SMART GRID INSIGHTS Microgrids: The BRICS Opportunity | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org
  • 30. the residents have been PROMISED electrification The Clearwater Mall tenants, which consist of nine anchor and basic services for 11 years now. stores, and more than two hundred other local and international fashion and quick serve food outlets,The residents of Sedgefield that are also ratepayers, do restaurants, banks, electronic goods and other specialtynot think it is fair to pay their taxes and then fund services stores, require reliable electricity so they can continue toagain personally. They believe this job should be done by run their business. The mall’s new retail micro grid solution,the local municipality – and it should happen immediately. based on Echelon partner PMT’s Meteringonline energy management application, employs Echelon smart meters,The fact that Specialized Solar Systems have developed a data concentrators, and NES system software to submeterpre-paid metering and other management control option individual tenant usage, so they can pay only for theiron their DC microgrid systems would facilitate a return on actual energy usage rather than the industry norm ofinvestment on these systems, makes a community roll-out paying for energy on a square footage basis. Furthermore,even more feasible. tenants can opt-in to power supplied by local back-up generation when blackouts occur. PMT’s MeteringonlineThe Sedgefield community is now desperate for application interfaces to Echelon’s system software andelectrification and has explored all possible avenues to reconciles usage with energy source, allocating tariffsachieve this, even asking for public donations!34 based on actual use. The on-demand energy services allow the store owners to manage their energy usage andEchelon Deploys Microgrid in South Africa associated costs and maximize revenues. 35Echelon Corporation will deploy a microgrid in Clearwater BRICS: Microgrid OutlookMall in Johannesburg, South Africa that integratesdistributed generation to compensate for disruptions in Overall BRICS nations present a significant opportunity forutility-supplied power. It is built on Echelon’s proven, open microgrid development. Throughout the nations, severalstandard, multi-application energy control networking projects have highlighted the enormous potential that anplatform powered by its Control Operating System (COS) integrated microgrid, combining renewable energyand incorporate application software and services from its generation, strategically selected software, and energylocal partners Grene Robotics and Power Meter Technics storage solutions can offer to the citizens of the BRICS(PMT). The first-of-its-kind in the two countries, the micro nations. Because all five nations are in tremendous growthgrid deployments involve dynamically managing demand phases and have such a huge portion of their citizensand energy supply mix for a retail mall to deliver reliable without connected energy, the demand for energy will riseservice cost-effectively.34www.specializedsolarsystems.co.za/index.php/dc-microgrids-viable-african-energisation/rural-africa-energisation-solutions/rural-elecrification 35 www.echelon.com/company/news-room/2012/microgrids-india-south-africa.htm29 [PREMIUM] ZPRYME SMART GRID INSIGHTS Microgrids: The BRICS Opportunity | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org
  • 31. in the near term, thus presenting a huge prospect formicrogrid development.The microgrid system has a great potential in largecommercial and industrial complexes, hospitals, shoppingmalls/ complexes, apartments, residential complexes,educational institutions, remote un-electrified as well aselectrified locations to ensure maximum flexibility, reliabilityand safety. Moreover, in some specific customersegments, such as the military and research labs, there issignificant value in a secure network such as the microgrid.30 [PREMIUM] ZPRYME SMART GRID INSIGHTS Microgrids: The BRICS Opportunity | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org
  • 32. Q&A with: ZP: How is software effecting the microgrid, what type of microgrid software does Echelon provide? JL: Software plays an essential role in microgrids. In Jeff Lund order to balance supply, demand, and storage at the local low voltage distribution transformer level VP of Business Development requires an intelligent point of presence within the low voltage grid and a software framework that can host the local analytics and control www.echelon.com apps. Echelon provides a three-tier multi- application energy control networking platformQ&A with Echelon powered by its Control Operating System (COS)ZP: How does Echelon define the microgrid? with open software interfaces at the device level, enterprise level, and most importantly for micro JL: We think of the electric grid as being an grids, at the edge of the gird where the low interconnection of high, medium, and low voltage voltage network connects to the internet. Working distribution grids. Microgrids have to do with this with partners, Echelon can provide a last tier, the low voltage distribution network. What comprehensive suite of applications for makes a low voltage distribution network a microgrids. For example, two Echelon partners microgrid is when it contains local generation (e.g., Grene Robotics and Power Meter Technics have a diesel generator or roof top solar) along with each deployed microgrid solutions in South Africa, local intelligence that can dynamically manage one focused on residential communities and the and balance local loads with supply and, other on retail malls. potentially, local storage. Some people define microgrids as having the ability to actively ―island‖ ZP: What does the microgrid mean to developing themselves off of the main grid for security or countries? reliability reasons, but we see this more as a potential application of microgrids and not the JL: We see microgrids as particularly important for defining characteristic. developing countries for a number of reasons. As demonstrated by deployments by our partners in South Africa, microgrids provide a way for communities and businesses to supplement supply form the grid with local generation to increase reliability and availability of power while lowering31 [PREMIUM] ZPRYME SMART GRID INSIGHTS Microgrids: The BRICS Opportunity | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org
  • 33. cost to consumers. Microgrids also represent a cost effective and faster path for building infrastructure and scaling the grid. Rather than the high investment and long construction cycles associated with building large centralized power plants and associated distribution infrastructure, microgrids allow for distributed generation and local demand balancing to enable the grid to be built up neighborhood by neighborhood.ZP: What type of impact will the microgrid have on thefuture Smart Grid? JL: The microgrid will impact the smart grid from a variety of dimensions. The rise of microgrids will necessitate the move to a distributed networking model that allows for intelligence and decision making at the edge of the grid as well as in devices and the enterprise. Having this local intelligence will make the grid better able to incorporate distributed generation and intermittent renewables such as solar and wind. By being able to adapt in real time to changing available of and demand for power they will also make the grid more able to absorb new loads such as electric vehicles. Ultimately, microgrids with local intelligence will increase the reliability and survivability of the grid by being able to manage supply, demand, and storage at a local level.32 [PREMIUM] ZPRYME SMART GRID INSIGHTS Microgrids: The BRICS Opportunity | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org
  • 34. Q&A with: microgrids but the core control system and applications are the same. ZP: What does the microgrid mean to developing Thierry Godart countries? President, Smart Grid Division, U.S. TG: For developing countries specifically, a microgrid can offer a very reliable network for a specific region/location. A microgrid allows the www.siemens.com local community to take more ownership and control of their infrastructure and ease theQ&A with Siemens investment burden of a national utility.ZP: How does Siemens define the microgrid? ZP: What type of impact will the microgrid have on the TG: Siemens defines a microgrid as a regionally future Smart Grid? limited energy system of distributed energy resources, consumers and, optionally, storage. A TG: Both of these concepts are fluid and have microgrid optimizes one or many of the broad meanings. Ultimately, Smart Grid is about following: power quality, power reliability, leveraging technology to improve the consumers sustainability and economic benefits. Microgrids experience and service, and enable the utility to may continuously run in off-grid- or on-grid mode, profitably improve its operations. A microgrid - as well as in dual mode by changing the grid whether deployed by a utility of a group of connection status. consumers - is one application that will leverage technology to improve reliability and service.ZP: How is software effecting the microgrid, what type ofmicrogrid software does Siemens provide? TG: Siemens provides utility-grade control systems for microgrid control. We use automation systems (substation automation, SCADA and Distribution Management Systems (DMS)) that have a long track record and have been deployed hundreds of times in other applications. Customer and application specific engineering is required for33 [PREMIUM] ZPRYME SMART GRID INSIGHTS Microgrids: The BRICS Opportunity | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org
  • 35. About Zpryme Smart Grid Insights:Zpryme-powered Smart Grid Insights Publication, Practice andAdvisory Board help organizations understand their businessenvironment, engage consumers, inspire innovation, and take action.Zpryme Smart Grid Insights represents an evolution beyond traditionalmarket research and consulting: combining sound fundamentals,innovative tools and methodologies, industry experience, andcreative marketing savvy to supercharge clients’ success. At Zpryme,we don’t produce tables and charts; we deliver opportunity-focused,actionable insight that is both engaging and easy-to-digest. For moreinformation regarding our custom research, visit: www.zpryme.com.Zpryme Smart Grid Insights Contact:smart.grid@zpryme.com | +1 888.ZPRYME.1 (+1 888.977.9631)www.smartgridresearch.org (Zpryme Smart Grid Insights)Zpryme Credits:Managing Editor Sr. Research Analysts Research LeadJon Arnold* Nidhi Jolly Stefan Trifonov Paula Smith Nivedita Wantamutte Megan Dean*Jon Arnold is also a member of Zpryme’s Smart Grid Advisory Board.Disclaimer:These materials and the information contained herein are provided by Zpryme Research & Consulting, LLC and areintended to provide general information on a particular subject or subjects and is not an exhaustive treatment ofsuch subject(s). Accordingly, the information in these materials is not intended to constitute accounting, tax, legal,investment, consulting or other professional advice or services. The information is not intended to be relied upon asthe sole basis for any decision which may affect you or your business. Before making any decision or taking anyaction that might affect your personal finances or business, you should consult a qualified professional adviser. Thesematerials and the information contained herein is provided as is, and Zpryme Research & Consulting, LLC makes noexpress or implied representations or warranties regarding these materials and the information herein. Without limitingthe foregoing, Zpryme Research & Consulting, LLC does not warrant that the materials or information containedherein will be error-free or will meet any particular criteria of performance or quality. Zpryme Research & Consulting,LLC expressly disclaims all implied warranties, including, without limitation, warranties of merchantability, title, fitnessfor a particular purpose, noninfringement, compatibility, security, and accuracy. Prediction of future events isinherently subject to both known and unknown risks, uncertainties and other factors that may cause actual results tovary materially. Your use of these and the information contained herein is at your own risk and you assume fullresponsibility and risk of loss resulting from the use thereof. Zpryme Research & Consulting, LLC will not be liable for anyspecial, indirect, incidental, consequential, or punitive damages or any other damages whatsoever, whether in anaction of contract, statute, tort (including, without limitation, negligence), or otherwise, relating to the use of thesematerials and the information contained herein.34 [PREMIUM] ZPRYME SMART GRID INSIGHTS Microgrids: The BRICS Opportunity | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. www.zpryme.com | www.smartgridresearch.org
  • 36. SMART GRID INSIGHTS SMARTGRIDRESEARCH.ORG INTELLIGENT RESEARCH FOR AN INTELLIGENT MARKETINTELLIGENCE BY ZPRYME | ZPRYME.COM© 2012 ZPRYME RESEARCH & CONSULTING, LLC. ALL RIGHTS RESERVED.