Talks about why micro-grid will be the next BIG thing in Indian energy sector.

1. Micro-grid
Supply of energy to a hamlet using multiple sources of energy & managing the S-D
complication
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2. Microgeneration Large-scale generation
Waste Heat Can be used for heating purposes known Used in some privately owned
by-product as micro combined heat and power. industrial CHP installations.
Transmission Lower losses Higher losses(8% of power
losses generated globally & 26% in
India is lost in AT&C)
Changes to Reduces the transmission load & thus Increases the power transmitted,
Grid reduces the need for grid upgrades and the need for grid upgrades
Reliability and PVs, Stirling engines, and certain other Managed by power company.
Maintenance systems, are usually extremely reliable.
requirements
Sales-pitch Focused on the "green-ness" of energy Focused on the energy crisis.
exaggerations
Ability to Renewables: Actual production is only a Fuel based systems are
meet needs fraction of nameplate capacity. fully dispatchable
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3.  2 GW market by 2016 in India
 Rural applications:
Agricultural, Domestic,
Lighting, Industrial
applications
87% of rural population
has lesser than required
electricity
25% of Indian population do
not have access to electricity
owing to last mile connectivity
issues- IEA, Oct 2012
 PV cost reaching grid parity in
few states
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4.  Cost economics
Falling renewables LCOE vs rising APPC
Most technological cost hurdles removed
Direct consumers more creditworthy
than SEBs
Policy landscape $/Wp of modules
1.6
July blackout: Green Energy corridor 1.4
1.2
report suggests micro-grid 1
Oil import bill: Energy security 0.8
0.6
enhancement by means of DDG
27.04.2011
01.06.2011
29.06.2011
27.07.2011
24.08.2011
21.09.2011
19.10.2011
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14.12.2011
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08.02.2012
07.03.2012
04.04.2012
02.05.2012
30.05.2012
27.06.2012
25.07.2012
22.08.2012
19.09.2012
17.10.2012
14.11.2012
12.12.2012
16.01.2013
13.02.2013
Diesel subsidy directed at rural but
injected at telecom
High AT&C loss: 28% national
average, and low ARRs indicate a
compulsory shift to distributed
generation
Enhancing rural economy
Rural development needs energy at the
last mile
RGGY implementation
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5. Captive + REC RESCO + REC
Assumptions Captive + REC Risk to BOO model mitigated by
microgrid
Tariff escalation 5% RESCOs can schedule PV power
REC prices 2012-17: Rs.9.3 per kWh procurement
2017-22: Rs.2.2 per kWh Scalable kits of 10kW can keep
2017 onwards: Rs.0 strides with business growth of
industry
Capex Rs. 8.8 cr/MW
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6. Farmer Kulveer Singh of Ganganagar told TOI, "With the help of the pump, money spent on fuel consumption is saved. In
one hour, 2.5 litres of diesel is required, and in a day a generator is run for at least 8 hours. The solar pump is very cost
effective.“
 Cost of 1 kWh of DG is Rs. 18 at Diesel cost of Rs. 50 compared to Rs.6.7 from PV pump.
 A 3 HP pump costs Rs. 4.5 Lakhs & gets a 30% capex subsidy.
Components Specification Major Barriers to implement
SPV panels 1800 Wp
• Select kharif crops need water only in the 7-9 am & 5-
Motor pumpsets 2 HP Centrifuge DC 7 pm when its dawn & dusk.
Operating voltage 60 V DC • Average rural monthly income is Rs. 3000 per
household, hence affordability an issue.
Borewell size 150 mm dia • Inaction based on poll promise
Suction head 7m to 10m
BOO
Pumping quantity 1,40,000 lpd model
Modular
storage
systems
A variation of the agricultural pump can also be used in Attractive EMI
salt pans & prawn cultivation, where DG is harmful. This
by itself is a Rs.5000 crore market.
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7. Assocham report states cold storage
market in India would be Rs. 64000
crore by 2017 with a phenomenal 25%
CAGR!! http://articles.economictimes.indiatimes.com/2013-02-06/news/36949978_1_cold-chain-cold-storage-storage-capacity
65% of CoO of a cold storage is for
energy, hence it’s a Rs.38000 crore
market.
51% FDI in Retail to only increase the
size of the market for cold storage.
Policy
Requirement for storage: No need of There is no specific policy in this direction,
storage for fishing but for agriculture & but load mitigation can greatly be done by
poultry, mobile cold storage vans could solar.
also be a option
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8. One Astronomical stats: Per average farmer globally consumes 1100 units per yr, compared to 530 units in
India. If SPV were to meet that requirement alone, it’s a Rs. 64 Lakh crore market!!
Policy: RGGY gives 90% subsidy, and its implementation arm , Rural Electricification Co-operation arranges
for 5% soft loan as well.
Success stories
IRR of 12% to 18% expected with 80% D-E ratio.
• Gram Power
• Mera Gaon
Technology options: • SELCO
Small distance (upto 1km, DC transmission recommended)
Centralized battery storage (Li-ion, Flow batteries)
© LANCO Group, All Rights Reserved Source: MoEF, http://www.jseejournal.com/JSEE%202012/PDF%20file%20JSEE%203(1)%202012/7.Energy%20scenarios%20pp.%207-17.pdf

9. • Assuming a 5% hike in tariff YoY for next 25 years, and TN
policy for net-metering the LCOE turns out to be lesser than
Rs.5, which is lesser than the cost incurred by installing a
inverter back-up
• Plug & play kits serve precisely the said purpose
• Policy lacunae: Earlier subsidy was offered only to Pb-Acid
batteries, and now there is a cap on capex which means
installers prefer lower capex rather than LCOE for setting up.
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10. Use Component Sub-component
Eliminates T&D • Solar ( PV, CSP)
Distributed
losses, and enhances • Wind
usage of renewables.
Generation • Bio-mass
Unreliability of RE is • Harmonics controller
Steadier backup
greatly reduced. • Voltage & frequency regulation
of power • Auxiliary Reactive loads
Schedules supply & Communication • Net meters, PQM, OMS, Output forecasts
demand of power. control • Radio/micro-wave 2 way communication
Shifts peak, reliable
power supply, • Batteries: Li-ion, Pb-Acid, VRB, ZBB
compliments PV. Energy storage • Reactive loads: Flywheel, capacitors, RLC circuit
• Grid level: Pumped hydro
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11. Forms of energy storage Major Advantages Key disadvantages
Electrochemical battery Uses DC to store, and fits Unfit for very large size &
the different scales of PV very small sizes
Pumped storage Best fitted for GW level Very site specific
storage
Capacitors (Ultra-small) Intermittent voltage & Expensive & non-scalable
frequency regulation
Flywheels Load balancing & power Bulky & stores relatively
quality management lesser energy
Cryogenics Compact & mechanical Unproven & risk of
based-less prone to failure operating in the high
insolation solar fields
Every transformation of energy accounts for atleast 12% energy dissipation, which in
itself makes storage of electrons as electrons (closest to ions) ensures least wastage.
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12. • Reason for battery:
– Minimal transformation of energy
– Least setup time in compliance with solar
• Metrics to measure cost economics
Levelised Annual Cost (LAC):
• Divide the required Ah by DoD, and no. of
replacements from cycles per day and system life.
Calculate the additional capex, and add to capex in
LCOE model.
• Multiply the yield by DC-DC turnaround efficiency to
get the effective yield to be used in the LCOE model
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13. Lead acid VRB Li-ion Na-S Na-Ni Zn-Br
Specific energy 30-40Wh/kg 10-20Wh/kg 100-250Wh/kg 150Wh/kg 90-120Wh/kg 22.7Wh/kg
Energy density 60-75 Wh/l 15-25Wh/L 250-620Wh/L 250Wh/L 166Wh/L 17Wh/L
Specific power 180W/kg 220W/kg 250-620W/kg 250W/kg 450W/kg 150W/kg
Charge eff 50% 75% 80% Net 87%
Discharge eff 92% 80% 90% Net 87%
Energy price(capex) 1Wh/USD .7Wh/USD 2.5Wh/USD 1Wh/$ 2.2Wh/$ 1.053Wh/$
Power price(capex) 1.5W/$ .67W/USD .33W/$ .83W/$ .75W/$ 2W/$
8%@21,15%@40,31%
Self discharge rate 3-20%/month 10-20 years @60 per month 2% per month
Cycle durability 500-800 cycles >10000 cycles 400-1200 cycles 3000-5000 cycles 2000cycles 15000 cycles
Nominal cell voltage 2.105V 1.5-1.55V 3.6/3.7V 2.58V 3.5V
Max power rating 1-.8MW 10kW-5MW 7kW-1MW 1MW-15MW 1 MW 0.5MW
Discharge time 4 seconds-5hours 45mins-10 hours 6mins-15hours 7hrs-10hrs 8 hours 1hr-5hrs
DoD 80% 95% 100% 90% 100% 100%
Advantageous
property Easily available Lowest maintenance Compact Large scale Telecom applications
Ideal for solar with no
space constraints & Where space is a
places where life-time constraint & where Large farms, and
costs are more fluctuations in duty integratable with Li-
Purpose augmented Small rooftops with important than one- cycle of recharge is Likely to be a fit ion for medium size
with solar capex constraints time costs required. Grid level storage between Li-ion & Na-S applications.
High operating temp;
Na should be in Freezes if left in the
Major disadvantage Low life time Occupies high space High capex molten state cold Too much space.
Li chemistry still
defined on a usage
SMF,AGM, Tubular V salts with more based, hence
are being used but no charge density, Zn-Br, chemistry New ways of coping to
Scope for new paradigm shift Fe-Cr becoming easy optimisation scope keep Na warm Ni-Fe or Na-Ni-I might Substitute bromide
technologyGroup, All Rights Reserved
© LANCO expected. substitutes remains researched widely. occupy lesser space with other hallides.

14. Bulk applications: 1 MW onwards, calculations done for a 20MWp solar farm
and 3hrs of storage, 25 yrs system size
Technology-wise cost Na-S Zn-Br VRB
No. of replacements 3 1 1
Capacity overshoot(DoD) 11% 0% 5%
$/W $ 2.7 $ 0.5 $ 1.0
$/Wh $ 1.0 $ 1.0 $ 1.4
Round-trip efficiency 87% 60% 60%
Initial capex cost(USD) $16 mn $ 14.25 mn $ 22.56 mn
Total cost(Rs.) 324 cr 270 cr 318 cr
Energy output (kWh) 204.89 mn 194.466 mn 194.466mn
LCOE(Rs./kWh) 15.83 13.90 16.4
Flow batteries(VRB & Zn-Br) are better suited to bulk storage, given
the longevity & lesser maintenance. Features that compliments
integration with PV.
Li-ion applicable only when precision & greater dependence needs to
be imparted in the system.
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15. Bulk applications: 10kW onwards, calculations done for a 100 kWp solar farm
and 5hrs of storage, 25 yrs system size & 2 cycles per day
Technology-
wise cost Na-S Li-ion Zn-Br VRB Na-Ni Li-Fe Pb-Acid
No. of
replacements 5 3 2 2 10 3 16
Capacity
overshoot(DoD) 11% 0% 0% 5% 5% 0% 25%
$/W $ 2.7 $ 1.70 $ 0.5 $ 1.0 $ 1.3 $ 1.65 $ 1.00
$/Wh $ 1 $ 1.23 $ 1. $ 1.4 $ 0.5 $ 1.10 $ 1.00
Round-trip
efficiency 76% 96% 60% 60% 76% 94% 85%
Initial cost($) 0.11 mn 0.123 mn 0.13 mn 0.15 mn 0.05 mn 0.11 mn 0.125 mn
Total cost(Rs.) 2.18 cr 1.76 cr 1.73 cr 1.87 cr 1.67 cr 1.66 cr 2.8 cr
Total yield
(MWh) 987 1039 947 947 987 1034 1011
LCOE (Rs./kWh) 22.08 16.92 18.27 19.70 16.99 16.09 27.69
Combination of Zn-Br & Li ion batteries, seem to rule the roost.
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16. Gap analysis for integrating battery with PV
Whom we could partner with..
• Zn-Br redox batteries
What we What we
have don’t ZBB • Micro-grid installation
• Multiple resource management
• Na-Ni battery
Fiamm • Telecom solution
• EVs
• Li-ion,Ni-Cd & Pb-acid batteries
BYD • Micro-grid installation
• Evs
• PV EPC
Meeco • Li-ion from Durion
• Micro-grid
Other storage providers: Gleideweister (VRB), SAFT (Li-ion), High-view storage
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17. Key technology comparisons
Battery Technologies Players Country
technology commercially
classification available
Flow batteries Zinc Bromide ZBB USA
Flow batteries Vanadium Redox Cellstrom(Gleidwe Switzerland
ister)
Flow batteries Iron Chromium Deeya India-US
Molten Salt Sodium Sulphur NGK Japan
Molten Salt Sodium Nickel Fiamm Switzerland
Li-ion Manganese based PSI, SAFT Korea,France
Li-ion Cobalt & Iron Meeco, BYD EU,China
based
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18. Short-listing of technologies
 For grid level storage Pumped Hydro
seems to be the most effective form of
storage
 Longer life, lower LAC & suitability for
kW to 10MW range makes flow, molten
& Li-ion batteries a better proposition
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19. Evaluation of key probables
Company Name ZBB Fiamm BYD
Products portfolio PIU,micro-grid, Zn-Br Na-Ni, Ni-Cd, Lead Acid Lead Acid,Li-ion(2
batteries; Integration with batteries; Electric vehicles, chemistries) batteries;
other batteries possible Integration with other PCU, multi-source mgmt
batteries possible
Core strengths Integratable with other Rich experience in micro- Very broad product
batteries also grids in Italy portfolio
Weakness Arguably a start-up Not open to varied battery Chinese tag
applications
Strategic threat Fragile finances being a start- Is a PV module mfg also,
up might set-up a shop on
their own for micro-grids
in India
Economics Suitable for MW farms & kW Only for kW but long Competes at every level
level set-ups duration storage like telecom
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20. Reason for rejection of other players
Company Reason
Cellstrom Only storage solution & no power electronics or micro-grid solution available
Meeco Own a subsidiary called Durion which does Li-ion, but is by itself a solar EPC
and has done 200MW. Partnering with them might create additional
competition for solar EPC in India later
SAFT Too big to deliver customized solutions
NGK Na-S had a explosion in September 2011 and since have stopped selling along
with warranties
PSI Not suitable to large farms, and not a big enough player
Deeya Too early in the start-up stages
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21. Small Indian players
Foreign govt. agencies promoting micro-grid
• Apnagaon • NEDO-Japan
• Meragoan • EBTC-EU
Domestic battery manufacturers
• Husk power
•Rocket
• Kuvam energy •Amaraja
• Gram power •Amco(is entering into JV with SAFT)
Indian companies trying to venture into micro-grid & smart-grid
HCL General
Capgemini Power Grid L&T ABB CISCO
infosystems Electric
Mahindra-
IBM Siemens Schneider Azure Hitachi Tata power Clean
ventures
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22. Thanks.
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