SlideShare a Scribd company logo
Cost and Finance in Off-Grid Energy Services
Berkeley Rural Energy Group
Daniel Soto
Sonoma State University
21 March 2014
Introduction
How do we accelerate the pace of energy access, particularly
the adoption of watt-scale devices
How do we ensure that these devices are accessible to all
income levels?
Product cost and financing both important
Parallels between US and off-grid
Manhattan blackout
People exhibit identical behavior in disaster blackouts and
off-grid environments
US Third party financing
Growth in financing options led to an increase rooftop solar
Financing is key to off-grid energy access
Top investors target the residential solar leasing model
To address the growing residential opportunity, many of the world’s leading PV
manufacturers have opened new business units and launched financing and hardware
product solutions for the market. More importantly, the channel used to serve the
residential market has shifted quickly in the past three years. In H1 2009, third party
ownership with leases represented less than 20% of the California residential PV
installation market, while in H1 2012 solar leasing claimed >70% market share1.
2
0%
20%
40%
60%
80%
100%
H1-2007
H2-2007
H1-2008
H2-2008
H1-2009
H2-2009
H1-2010
H2-2010
H1-2011
H2-2011
H1-2012
Third Party Other
Calfornia Solar Initiative Residential Installations
http://www.pwc.com/cleantech
Outline
Millennium Villages microgrids
Pilot project
Data gathered
Lessons learned
Future Work
Affordability
Negative recurring costs for consumers
Millennium Villages pay-as-you-go
The primary objectives were to
Demonstrate system for micropayments for electricity
Remove upfront consumer investment
Demonstrate technical feasibility
Demonstrate customer acceptance
Typical sites
Millennium Villages Microgrid
Millennium Villages Microgrid
Millennium Villages Microgrid
Millennium Villages Microgrid
Customer education
Data Collected
Per customer power and energy consumption on 3 second
intervals stored locally
Hourly data sent via cellphone to a server
Customer transactions and credit balances recorded
Allows for observation of account balance and payment
regularity
Customer payment behavior
Accurate reporting on the financial behavior of customers
allows for an accurate calculation of risk and return.
Time with positive balance
70% of consumers maintained a positive balance over 90% of
the time
Time with positive balance
0.0 0.2 0.4 0.6 0.8 1.0
Percentage of Time With Credit Available
0.0
0.2
0.4
0.6
0.8
1.0FractionofCustomers 2012-02-01 00:00:00 - 2012-03-01 00:00:00
Positive balance and average expenditure
Many customers with modest expenditures displayed consistent
payment behavior.
Soto et.al. ICTD 2012
Technical outcomes
What technical improvements are suggested by these
observations?
Low cost metering solutions
Battery, inverter, generator efficiency
Reliability
Low-cost metering system
UCB developed a low-cost metering system for microgrids
Rosa, Madduri, IEEE GHTC 2012
System commercialized by a microgrid startup company
Inverter and generator efficiency
Inverters and generators must be large enough to safely meet
the highest demand
Operating below the rated load results in lower efficiency
What is the financial penalty for lower efficiency?
Load duration curves
0.0 0.2 0.4 0.6 0.8 1.0
Fraction of Availability
0
50
100
150
200
250
300
350
400
AverageHourlyPower
Lighting
Lighting and Freezer
Modeling of improvements
Clear sky insolation model
Semi-ideal inverter model
Choose smallest battery and panel to meet demand
https://github.com/dsoto/pv energy balance
Cost penalty for inverter performance
0	
  
0.1	
  
0.2	
  
0.3	
  
0.4	
  
0.5	
  
0.6	
  
0.7	
  
0.8	
  
0.9	
  
Day	
   Night	
   Constant	
   Ligh:ng	
   Freezer	
  
Cost	
  (USD/kWh)	
  
Typical	
  
Flat	
  
Soto, Modi, IEEE GHTC 2012
Battery comparisons
Using same model, what is the dependence of system cost on
the battery technology
Lead acid batteries
Inexpensive
1000 cycles of life
80% round trip energy efficiency
Lithium iron phosphate
Expensive
10000 cycles of life
92% round trip energy efficiency
System cost by battery technology
Trade off between cost and reliability
Demanding high reliability as a design point can increase cost
Goal is to enable microgrid designers consider reliability in the
design process
Cost and energy shortfall probability (ESP)
Lee, Soto, Modi, In Press, Renewable Energy
Future Work
Affordability of energy access
Financing of energy access
Negative recurring cost
Payback is less important than a reduction in expenditures for
many consumers
If saving is difficult, little ability to pay above existing
expenditures
Pico-power product is an investment that generates returns in
the form of avoided costs
Payback periods
Device Initial Cost Monthly Revenue Months Payback
Solar Lantern $20 $2.00 10
Battery for
phone charging
$150 $15.00 10
Battery selling
electricity
$150 $3.00 50
Returns and available financing
0 10 20 30 40 50
Life of term (months)
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
Equivalentrateofreturn
small lantern
battery in a box
retail electricity
Microfinance usually shorter than 12 months and above 35%
What are the drivers of finance rate and payback period?
Perceived risk
Investor demand
Alternative investments
Transaction costs
Are there conflicting requirements for donors and recipients
for initial cost and sustainability?
Impact on practitioners
How do academics communicate with practitioners?
Thank you
Daniel Soto
sotod@sonoma.edu
http://danielrsoto.com

More Related Content

What's hot

Crown Capital Eco Management: Lightening an Energy Load Requires a Ton of Wor...
Crown Capital Eco Management: Lightening an Energy Load Requires a Ton of Wor...Crown Capital Eco Management: Lightening an Energy Load Requires a Ton of Wor...
Crown Capital Eco Management: Lightening an Energy Load Requires a Ton of Wor...
arielgermain
 
Electricity retailing: location-based approach for quality customer experiences
Electricity retailing: location-based approach for quality customer experiencesElectricity retailing: location-based approach for quality customer experiences
Electricity retailing: location-based approach for quality customer experiences
Hervé Senot
 
Iso Ne Consumer Liaison Mtg Essex Vt 6 2 11
Iso Ne Consumer Liaison Mtg Essex Vt 6 2 11Iso Ne Consumer Liaison Mtg Essex Vt 6 2 11
Iso Ne Consumer Liaison Mtg Essex Vt 6 2 11
vtdobrien
 
How Dregulation Drives Innovation
How Dregulation Drives InnovationHow Dregulation Drives Innovation
How Dregulation Drives Innovation
Bounce Energy
 
"Smart Grid" or "Smart Hype"
"Smart Grid" or "Smart Hype""Smart Grid" or "Smart Hype"
"Smart Grid" or "Smart Hype"
Glenn Klith Andersen
 
UK Electricians Jobs- Renewables and Energy Saving Work for Electrical Contra...
UK Electricians Jobs- Renewables and Energy Saving Work for Electrical Contra...UK Electricians Jobs- Renewables and Energy Saving Work for Electrical Contra...
UK Electricians Jobs- Renewables and Energy Saving Work for Electrical Contra...
Goldrank
 
Transactive Energy: A Sustainable Business and Regulatory Model for Electricity
Transactive Energy: A Sustainable Business and Regulatory Model for Electricity Transactive Energy: A Sustainable Business and Regulatory Model for Electricity
Transactive Energy: A Sustainable Business and Regulatory Model for Electricity
Baker Street Publishing LLC
 
Sgcp14hampshire
Sgcp14hampshireSgcp14hampshire
Sgcp14hampshire
Justin Hayward
 
Smart Grid Needs Smart Consumers
Smart Grid Needs Smart ConsumersSmart Grid Needs Smart Consumers
Smart Grid Needs Smart Consumers
REIS Project at University of Hawaii at Manoa
 
Steven hauser presentation
Steven hauser presentationSteven hauser presentation
Steven hauser presentation
Green17Creative
 
How Companies Are Buying Clean Energy in India: Lessons from 3 Years of the G...
How Companies Are Buying Clean Energy in India: Lessons from 3 Years of the G...How Companies Are Buying Clean Energy in India: Lessons from 3 Years of the G...
How Companies Are Buying Clean Energy in India: Lessons from 3 Years of the G...
World Resources Institute (WRI)
 
The rise of the prosumers july 1st 2015
The rise of the prosumers july 1st 2015The rise of the prosumers july 1st 2015
The rise of the prosumers july 1st 2015
Alejandro S. Core
 
Greentech India Opportunities - overview
Greentech India Opportunities - overviewGreentech India Opportunities - overview
Greentech India Opportunities - overview
geenteker editor
 
All renewable based dynamic electricity system
All renewable based dynamic electricity systemAll renewable based dynamic electricity system
All renewable based dynamic electricity system
Big Data Value Association
 
Prepaid Energy Meter using GSM Module
Prepaid Energy Meter using GSM ModulePrepaid Energy Meter using GSM Module
Prepaid Energy Meter using GSM Module
inventionjournals
 
Energy Management Services
Energy Management ServicesEnergy Management Services
Energy Management Services
eddynap
 
Wayne Gardner - Pennsylvania Public Utility Commission
Wayne Gardner - Pennsylvania Public Utility CommissionWayne Gardner - Pennsylvania Public Utility Commission
Wayne Gardner - Pennsylvania Public Utility Commission
Penn Institute for Urban Research
 
Ten Things You Should Know About Green Power Markets
Ten Things You Should Know About Green Power MarketsTen Things You Should Know About Green Power Markets
Ten Things You Should Know About Green Power Markets
Glenn Klith Andersen
 
The Role of Minigrids in Energy Access and National Electrification Planning
The Role of Minigrids in Energy Access and National Electrification PlanningThe Role of Minigrids in Energy Access and National Electrification Planning
The Role of Minigrids in Energy Access and National Electrification Planning
Andre Susanto
 
PPTs Steve Trash MGMT323 11-3-08
PPTs Steve Trash MGMT323 11-3-08PPTs Steve Trash MGMT323 11-3-08
PPTs Steve Trash MGMT323 11-3-08
entr200
 

What's hot (20)

Crown Capital Eco Management: Lightening an Energy Load Requires a Ton of Wor...
Crown Capital Eco Management: Lightening an Energy Load Requires a Ton of Wor...Crown Capital Eco Management: Lightening an Energy Load Requires a Ton of Wor...
Crown Capital Eco Management: Lightening an Energy Load Requires a Ton of Wor...
 
Electricity retailing: location-based approach for quality customer experiences
Electricity retailing: location-based approach for quality customer experiencesElectricity retailing: location-based approach for quality customer experiences
Electricity retailing: location-based approach for quality customer experiences
 
Iso Ne Consumer Liaison Mtg Essex Vt 6 2 11
Iso Ne Consumer Liaison Mtg Essex Vt 6 2 11Iso Ne Consumer Liaison Mtg Essex Vt 6 2 11
Iso Ne Consumer Liaison Mtg Essex Vt 6 2 11
 
How Dregulation Drives Innovation
How Dregulation Drives InnovationHow Dregulation Drives Innovation
How Dregulation Drives Innovation
 
"Smart Grid" or "Smart Hype"
"Smart Grid" or "Smart Hype""Smart Grid" or "Smart Hype"
"Smart Grid" or "Smart Hype"
 
UK Electricians Jobs- Renewables and Energy Saving Work for Electrical Contra...
UK Electricians Jobs- Renewables and Energy Saving Work for Electrical Contra...UK Electricians Jobs- Renewables and Energy Saving Work for Electrical Contra...
UK Electricians Jobs- Renewables and Energy Saving Work for Electrical Contra...
 
Transactive Energy: A Sustainable Business and Regulatory Model for Electricity
Transactive Energy: A Sustainable Business and Regulatory Model for Electricity Transactive Energy: A Sustainable Business and Regulatory Model for Electricity
Transactive Energy: A Sustainable Business and Regulatory Model for Electricity
 
Sgcp14hampshire
Sgcp14hampshireSgcp14hampshire
Sgcp14hampshire
 
Smart Grid Needs Smart Consumers
Smart Grid Needs Smart ConsumersSmart Grid Needs Smart Consumers
Smart Grid Needs Smart Consumers
 
Steven hauser presentation
Steven hauser presentationSteven hauser presentation
Steven hauser presentation
 
How Companies Are Buying Clean Energy in India: Lessons from 3 Years of the G...
How Companies Are Buying Clean Energy in India: Lessons from 3 Years of the G...How Companies Are Buying Clean Energy in India: Lessons from 3 Years of the G...
How Companies Are Buying Clean Energy in India: Lessons from 3 Years of the G...
 
The rise of the prosumers july 1st 2015
The rise of the prosumers july 1st 2015The rise of the prosumers july 1st 2015
The rise of the prosumers july 1st 2015
 
Greentech India Opportunities - overview
Greentech India Opportunities - overviewGreentech India Opportunities - overview
Greentech India Opportunities - overview
 
All renewable based dynamic electricity system
All renewable based dynamic electricity systemAll renewable based dynamic electricity system
All renewable based dynamic electricity system
 
Prepaid Energy Meter using GSM Module
Prepaid Energy Meter using GSM ModulePrepaid Energy Meter using GSM Module
Prepaid Energy Meter using GSM Module
 
Energy Management Services
Energy Management ServicesEnergy Management Services
Energy Management Services
 
Wayne Gardner - Pennsylvania Public Utility Commission
Wayne Gardner - Pennsylvania Public Utility CommissionWayne Gardner - Pennsylvania Public Utility Commission
Wayne Gardner - Pennsylvania Public Utility Commission
 
Ten Things You Should Know About Green Power Markets
Ten Things You Should Know About Green Power MarketsTen Things You Should Know About Green Power Markets
Ten Things You Should Know About Green Power Markets
 
The Role of Minigrids in Energy Access and National Electrification Planning
The Role of Minigrids in Energy Access and National Electrification PlanningThe Role of Minigrids in Energy Access and National Electrification Planning
The Role of Minigrids in Energy Access and National Electrification Planning
 
PPTs Steve Trash MGMT323 11-3-08
PPTs Steve Trash MGMT323 11-3-08PPTs Steve Trash MGMT323 11-3-08
PPTs Steve Trash MGMT323 11-3-08
 

Viewers also liked

1 project kill the flashover slides firehouse 2014
1 project kill the flashover slides firehouse 20141 project kill the flashover slides firehouse 2014
1 project kill the flashover slides firehouse 2014
Joe Starnes
 
No sq lv2
No sq lv2No sq lv2
No sq lv2
Nusrat Sharmin
 
Atomu tanaka japanese resume
Atomu tanaka japanese resumeAtomu tanaka japanese resume
Atomu tanaka japanese resumeAtomu Tanaka
 
Ingles de gigi ii corte...
Ingles de gigi ii corte...Ingles de gigi ii corte...
Ingles de gigi ii corte...
gigi marcano
 
Chapter 5(Cellular Concepts)
Chapter 5(Cellular Concepts)Chapter 5(Cellular Concepts)
Chapter 5(Cellular Concepts)
Nusrat Sharmin
 
Instrumento de Evaluación
Instrumento de Evaluación Instrumento de Evaluación
Instrumento de Evaluación
Garcia505
 
2014 master resume
2014 master resume2014 master resume
2014 master resume
Atomu Tanaka
 
Phần công suất123
Phần công suất123Phần công suất123
Phần công suất123Lê Nam
 
Mobile banking service
Mobile  banking serviceMobile  banking service
Mobile banking service
Shabbir Hasan
 
The measurement of advertisement effectiveness of banglalink
The measurement of advertisement effectiveness of banglalinkThe measurement of advertisement effectiveness of banglalink
The measurement of advertisement effectiveness of banglalink
Shabbir Hasan
 
Islami Bank Bangladesh ltd - Rds
Islami Bank Bangladesh ltd - Rds Islami Bank Bangladesh ltd - Rds
Islami Bank Bangladesh ltd - Rds
Shabbir Hasan
 
GROUP 01: PRIMARY, SECONDARY AND TERTIARY COLOURS
GROUP 01: PRIMARY, SECONDARY AND TERTIARY COLOURSGROUP 01: PRIMARY, SECONDARY AND TERTIARY COLOURS
GROUP 01: PRIMARY, SECONDARY AND TERTIARY COLOURS
celia_epv
 
GROUP 06: ATTRIBUTES OF COLOUR: HUE, VALUE, SATURATION
GROUP 06: ATTRIBUTES OF COLOUR: HUE, VALUE, SATURATIONGROUP 06: ATTRIBUTES OF COLOUR: HUE, VALUE, SATURATION
GROUP 06: ATTRIBUTES OF COLOUR: HUE, VALUE, SATURATION
celia_epv
 
GROUP 04: COLOUR SYSTEMS: SUBSTRACTIVE AND ADDITIVE COLOURS
GROUP 04: COLOUR SYSTEMS: SUBSTRACTIVE AND ADDITIVE COLOURSGROUP 04: COLOUR SYSTEMS: SUBSTRACTIVE AND ADDITIVE COLOURS
GROUP 04: COLOUR SYSTEMS: SUBSTRACTIVE AND ADDITIVE COLOURS
celia_epv
 
GROUP 03: COMPLEMENTARY AND ANALOGOUS COLOURS
GROUP 03: COMPLEMENTARY AND ANALOGOUS COLOURSGROUP 03: COMPLEMENTARY AND ANALOGOUS COLOURS
GROUP 03: COMPLEMENTARY AND ANALOGOUS COLOURS
celia_epv
 

Viewers also liked (15)

1 project kill the flashover slides firehouse 2014
1 project kill the flashover slides firehouse 20141 project kill the flashover slides firehouse 2014
1 project kill the flashover slides firehouse 2014
 
No sq lv2
No sq lv2No sq lv2
No sq lv2
 
Atomu tanaka japanese resume
Atomu tanaka japanese resumeAtomu tanaka japanese resume
Atomu tanaka japanese resume
 
Ingles de gigi ii corte...
Ingles de gigi ii corte...Ingles de gigi ii corte...
Ingles de gigi ii corte...
 
Chapter 5(Cellular Concepts)
Chapter 5(Cellular Concepts)Chapter 5(Cellular Concepts)
Chapter 5(Cellular Concepts)
 
Instrumento de Evaluación
Instrumento de Evaluación Instrumento de Evaluación
Instrumento de Evaluación
 
2014 master resume
2014 master resume2014 master resume
2014 master resume
 
Phần công suất123
Phần công suất123Phần công suất123
Phần công suất123
 
Mobile banking service
Mobile  banking serviceMobile  banking service
Mobile banking service
 
The measurement of advertisement effectiveness of banglalink
The measurement of advertisement effectiveness of banglalinkThe measurement of advertisement effectiveness of banglalink
The measurement of advertisement effectiveness of banglalink
 
Islami Bank Bangladesh ltd - Rds
Islami Bank Bangladesh ltd - Rds Islami Bank Bangladesh ltd - Rds
Islami Bank Bangladesh ltd - Rds
 
GROUP 01: PRIMARY, SECONDARY AND TERTIARY COLOURS
GROUP 01: PRIMARY, SECONDARY AND TERTIARY COLOURSGROUP 01: PRIMARY, SECONDARY AND TERTIARY COLOURS
GROUP 01: PRIMARY, SECONDARY AND TERTIARY COLOURS
 
GROUP 06: ATTRIBUTES OF COLOUR: HUE, VALUE, SATURATION
GROUP 06: ATTRIBUTES OF COLOUR: HUE, VALUE, SATURATIONGROUP 06: ATTRIBUTES OF COLOUR: HUE, VALUE, SATURATION
GROUP 06: ATTRIBUTES OF COLOUR: HUE, VALUE, SATURATION
 
GROUP 04: COLOUR SYSTEMS: SUBSTRACTIVE AND ADDITIVE COLOURS
GROUP 04: COLOUR SYSTEMS: SUBSTRACTIVE AND ADDITIVE COLOURSGROUP 04: COLOUR SYSTEMS: SUBSTRACTIVE AND ADDITIVE COLOURS
GROUP 04: COLOUR SYSTEMS: SUBSTRACTIVE AND ADDITIVE COLOURS
 
GROUP 03: COMPLEMENTARY AND ANALOGOUS COLOURS
GROUP 03: COMPLEMENTARY AND ANALOGOUS COLOURSGROUP 03: COMPLEMENTARY AND ANALOGOUS COLOURS
GROUP 03: COMPLEMENTARY AND ANALOGOUS COLOURS
 

Similar to Cost and Finance in Off-Grid Access

Creating climate wealth
Creating climate wealthCreating climate wealth
Creating climate wealth
Jigar Shah
 
Renewables...Storage...What's next?
Renewables...Storage...What's next?Renewables...Storage...What's next?
Renewables...Storage...What's next?
Charged2020
 
Big Bet On Solar PV
Big Bet On Solar PVBig Bet On Solar PV
Big Bet On Solar PV
Jigar Shah
 
SB11 - Ascentium - Pamela Wellner
SB11 - Ascentium - Pamela WellnerSB11 - Ascentium - Pamela Wellner
SB11 - Ascentium - Pamela Wellner
Sustainable Brands
 
Rate Design for Distributed Generation - NET METERING ALTERNATIVES
Rate Design for Distributed Generation - NET METERING ALTERNATIVESRate Design for Distributed Generation - NET METERING ALTERNATIVES
Rate Design for Distributed Generation - NET METERING ALTERNATIVES
American Public Power Association
 
Searching for 100% original and safe abortion pills? Contact +971581248768 fo...
Searching for 100% original and safe abortion pills? Contact +971581248768 fo...Searching for 100% original and safe abortion pills? Contact +971581248768 fo...
Searching for 100% original and safe abortion pills? Contact +971581248768 fo...
DUBAI (+971)581248768 BUY ABORTION PILLS IN ABU dhabi...Qatar
 
Get in touch with +971581248768 to purchase original and safe abortion pills ...
Get in touch with +971581248768 to purchase original and safe abortion pills ...Get in touch with +971581248768 to purchase original and safe abortion pills ...
Get in touch with +971581248768 to purchase original and safe abortion pills ...
DUBAI (+971)581248768 BUY ABORTION PILLS IN ABU dhabi...Qatar
 
Contact +971581248768 to buy 100% original and safe abortion pills in Dubai a...
Contact +971581248768 to buy 100% original and safe abortion pills in Dubai a...Contact +971581248768 to buy 100% original and safe abortion pills in Dubai a...
Contact +971581248768 to buy 100% original and safe abortion pills in Dubai a...
DUBAI (+971)581248768 BUY ABORTION PILLS IN ABU dhabi...Qatar
 
Get in touch with +971581248768 to purchase Abortion Pills in Dubai, Abu Dhab...
Get in touch with +971581248768 to purchase Abortion Pills in Dubai, Abu Dhab...Get in touch with +971581248768 to purchase Abortion Pills in Dubai, Abu Dhab...
Get in touch with +971581248768 to purchase Abortion Pills in Dubai, Abu Dhab...
DUBAI (+971)581248768 BUY ABORTION PILLS IN ABU dhabi...Qatar
 
Looking for safe abortion pills? Dial +971581248768 for availability in Dubai...
Looking for safe abortion pills? Dial +971581248768 for availability in Dubai...Looking for safe abortion pills? Dial +971581248768 for availability in Dubai...
Looking for safe abortion pills? Dial +971581248768 for availability in Dubai...
DUBAI (+971)581248768 BUY ABORTION PILLS IN ABU dhabi...Qatar
 
Need safe abortion pills? Call +971581248768 for 100% original and safe produ...
Need safe abortion pills? Call +971581248768 for 100% original and safe produ...Need safe abortion pills? Call +971581248768 for 100% original and safe produ...
Need safe abortion pills? Call +971581248768 for 100% original and safe produ...
DUBAI (+971)581248768 BUY ABORTION PILLS IN ABU dhabi...Qatar
 
Capgemini ses - smart grid operational services - leveraging technology to ...
Capgemini   ses - smart grid operational services - leveraging technology to ...Capgemini   ses - smart grid operational services - leveraging technology to ...
Capgemini ses - smart grid operational services - leveraging technology to ...
Gord Reynolds
 
Building sustainable livelihoods through renewable energy cases EfficientCarbon
Building sustainable livelihoods through renewable energy cases EfficientCarbonBuilding sustainable livelihoods through renewable energy cases EfficientCarbon
Building sustainable livelihoods through renewable energy cases EfficientCarbon
Zolt Energy
 
De Martini - UCLA SMERC conf. Mar 22, 2013
De Martini - UCLA SMERC conf.  Mar 22, 2013De Martini - UCLA SMERC conf.  Mar 22, 2013
De Martini - UCLA SMERC conf. Mar 22, 2013
Paul De Martini
 
A creative presentation
A creative presentationA creative presentation
A creative presentation
sunnykapoor_iitd
 
The Evolving Distribution Grid article
The Evolving Distribution Grid article The Evolving Distribution Grid article
The Evolving Distribution Grid article
Paul De Martini
 
Opportunity Maine Policy Webinar
Opportunity Maine Policy Webinar Opportunity Maine Policy Webinar
Opportunity Maine Policy Webinar
opportunitymaine
 
European Utility Week - US Business Utility Models
European Utility Week - US Business Utility ModelsEuropean Utility Week - US Business Utility Models
European Utility Week - US Business Utility Models
Paul De Martini
 
Smart Grid to Smart Consumers (ICS 690)
Smart Grid to Smart Consumers (ICS 690)Smart Grid to Smart Consumers (ICS 690)
Smart Grid to Smart Consumers (ICS 690)
Robert Brewer
 
brochure NetMetering-digital
brochure NetMetering-digitalbrochure NetMetering-digital
brochure NetMetering-digital
Jeremy Chen
 

Similar to Cost and Finance in Off-Grid Access (20)

Creating climate wealth
Creating climate wealthCreating climate wealth
Creating climate wealth
 
Renewables...Storage...What's next?
Renewables...Storage...What's next?Renewables...Storage...What's next?
Renewables...Storage...What's next?
 
Big Bet On Solar PV
Big Bet On Solar PVBig Bet On Solar PV
Big Bet On Solar PV
 
SB11 - Ascentium - Pamela Wellner
SB11 - Ascentium - Pamela WellnerSB11 - Ascentium - Pamela Wellner
SB11 - Ascentium - Pamela Wellner
 
Rate Design for Distributed Generation - NET METERING ALTERNATIVES
Rate Design for Distributed Generation - NET METERING ALTERNATIVESRate Design for Distributed Generation - NET METERING ALTERNATIVES
Rate Design for Distributed Generation - NET METERING ALTERNATIVES
 
Searching for 100% original and safe abortion pills? Contact +971581248768 fo...
Searching for 100% original and safe abortion pills? Contact +971581248768 fo...Searching for 100% original and safe abortion pills? Contact +971581248768 fo...
Searching for 100% original and safe abortion pills? Contact +971581248768 fo...
 
Get in touch with +971581248768 to purchase original and safe abortion pills ...
Get in touch with +971581248768 to purchase original and safe abortion pills ...Get in touch with +971581248768 to purchase original and safe abortion pills ...
Get in touch with +971581248768 to purchase original and safe abortion pills ...
 
Contact +971581248768 to buy 100% original and safe abortion pills in Dubai a...
Contact +971581248768 to buy 100% original and safe abortion pills in Dubai a...Contact +971581248768 to buy 100% original and safe abortion pills in Dubai a...
Contact +971581248768 to buy 100% original and safe abortion pills in Dubai a...
 
Get in touch with +971581248768 to purchase Abortion Pills in Dubai, Abu Dhab...
Get in touch with +971581248768 to purchase Abortion Pills in Dubai, Abu Dhab...Get in touch with +971581248768 to purchase Abortion Pills in Dubai, Abu Dhab...
Get in touch with +971581248768 to purchase Abortion Pills in Dubai, Abu Dhab...
 
Looking for safe abortion pills? Dial +971581248768 for availability in Dubai...
Looking for safe abortion pills? Dial +971581248768 for availability in Dubai...Looking for safe abortion pills? Dial +971581248768 for availability in Dubai...
Looking for safe abortion pills? Dial +971581248768 for availability in Dubai...
 
Need safe abortion pills? Call +971581248768 for 100% original and safe produ...
Need safe abortion pills? Call +971581248768 for 100% original and safe produ...Need safe abortion pills? Call +971581248768 for 100% original and safe produ...
Need safe abortion pills? Call +971581248768 for 100% original and safe produ...
 
Capgemini ses - smart grid operational services - leveraging technology to ...
Capgemini   ses - smart grid operational services - leveraging technology to ...Capgemini   ses - smart grid operational services - leveraging technology to ...
Capgemini ses - smart grid operational services - leveraging technology to ...
 
Building sustainable livelihoods through renewable energy cases EfficientCarbon
Building sustainable livelihoods through renewable energy cases EfficientCarbonBuilding sustainable livelihoods through renewable energy cases EfficientCarbon
Building sustainable livelihoods through renewable energy cases EfficientCarbon
 
De Martini - UCLA SMERC conf. Mar 22, 2013
De Martini - UCLA SMERC conf.  Mar 22, 2013De Martini - UCLA SMERC conf.  Mar 22, 2013
De Martini - UCLA SMERC conf. Mar 22, 2013
 
A creative presentation
A creative presentationA creative presentation
A creative presentation
 
The Evolving Distribution Grid article
The Evolving Distribution Grid article The Evolving Distribution Grid article
The Evolving Distribution Grid article
 
Opportunity Maine Policy Webinar
Opportunity Maine Policy Webinar Opportunity Maine Policy Webinar
Opportunity Maine Policy Webinar
 
European Utility Week - US Business Utility Models
European Utility Week - US Business Utility ModelsEuropean Utility Week - US Business Utility Models
European Utility Week - US Business Utility Models
 
Smart Grid to Smart Consumers (ICS 690)
Smart Grid to Smart Consumers (ICS 690)Smart Grid to Smart Consumers (ICS 690)
Smart Grid to Smart Consumers (ICS 690)
 
brochure NetMetering-digital
brochure NetMetering-digitalbrochure NetMetering-digital
brochure NetMetering-digital
 

Recently uploaded

Leveraging Generative AI to Drive Nonprofit Innovation
Leveraging Generative AI to Drive Nonprofit InnovationLeveraging Generative AI to Drive Nonprofit Innovation
Leveraging Generative AI to Drive Nonprofit Innovation
TechSoup
 
Film vocab for eal 3 students: Australia the movie
Film vocab for eal 3 students: Australia the movieFilm vocab for eal 3 students: Australia the movie
Film vocab for eal 3 students: Australia the movie
Nicholas Montgomery
 
writing about opinions about Australia the movie
writing about opinions about Australia the moviewriting about opinions about Australia the movie
writing about opinions about Australia the movie
Nicholas Montgomery
 
NEWSPAPERS - QUESTION 1 - REVISION POWERPOINT.pptx
NEWSPAPERS - QUESTION 1 - REVISION POWERPOINT.pptxNEWSPAPERS - QUESTION 1 - REVISION POWERPOINT.pptx
NEWSPAPERS - QUESTION 1 - REVISION POWERPOINT.pptx
iammrhaywood
 
How to Make a Field Mandatory in Odoo 17
How to Make a Field Mandatory in Odoo 17How to Make a Field Mandatory in Odoo 17
How to Make a Field Mandatory in Odoo 17
Celine George
 
A Independência da América Espanhola LAPBOOK.pdf
A Independência da América Espanhola LAPBOOK.pdfA Independência da América Espanhola LAPBOOK.pdf
A Independência da América Espanhola LAPBOOK.pdf
Jean Carlos Nunes Paixão
 
ANATOMY AND BIOMECHANICS OF HIP JOINT.pdf
ANATOMY AND BIOMECHANICS OF HIP JOINT.pdfANATOMY AND BIOMECHANICS OF HIP JOINT.pdf
ANATOMY AND BIOMECHANICS OF HIP JOINT.pdf
Priyankaranawat4
 
Chapter wise All Notes of First year Basic Civil Engineering.pptx
Chapter wise All Notes of First year Basic Civil Engineering.pptxChapter wise All Notes of First year Basic Civil Engineering.pptx
Chapter wise All Notes of First year Basic Civil Engineering.pptx
Denish Jangid
 
Mule event processing models | MuleSoft Mysore Meetup #47
Mule event processing models | MuleSoft Mysore Meetup #47Mule event processing models | MuleSoft Mysore Meetup #47
Mule event processing models | MuleSoft Mysore Meetup #47
MysoreMuleSoftMeetup
 
MARY JANE WILSON, A “BOA MÃE” .
MARY JANE WILSON, A “BOA MÃE”           .MARY JANE WILSON, A “BOA MÃE”           .
MARY JANE WILSON, A “BOA MÃE” .
Colégio Santa Teresinha
 
Advanced Java[Extra Concepts, Not Difficult].docx
Advanced Java[Extra Concepts, Not Difficult].docxAdvanced Java[Extra Concepts, Not Difficult].docx
Advanced Java[Extra Concepts, Not Difficult].docx
adhitya5119
 
বাংলাদেশ অর্থনৈতিক সমীক্ষা (Economic Review) ২০২৪ UJS App.pdf
বাংলাদেশ অর্থনৈতিক সমীক্ষা (Economic Review) ২০২৪ UJS App.pdfবাংলাদেশ অর্থনৈতিক সমীক্ষা (Economic Review) ২০২৪ UJS App.pdf
বাংলাদেশ অর্থনৈতিক সমীক্ষা (Economic Review) ২০২৪ UJS App.pdf
eBook.com.bd (প্রয়োজনীয় বাংলা বই)
 
RHEOLOGY Physical pharmaceutics-II notes for B.pharm 4th sem students
RHEOLOGY Physical pharmaceutics-II notes for B.pharm 4th sem studentsRHEOLOGY Physical pharmaceutics-II notes for B.pharm 4th sem students
RHEOLOGY Physical pharmaceutics-II notes for B.pharm 4th sem students
Himanshu Rai
 
Main Java[All of the Base Concepts}.docx
Main Java[All of the Base Concepts}.docxMain Java[All of the Base Concepts}.docx
Main Java[All of the Base Concepts}.docx
adhitya5119
 
Pengantar Penggunaan Flutter - Dart programming language1.pptx
Pengantar Penggunaan Flutter - Dart programming language1.pptxPengantar Penggunaan Flutter - Dart programming language1.pptx
Pengantar Penggunaan Flutter - Dart programming language1.pptx
Fajar Baskoro
 
Traditional Musical Instruments of Arunachal Pradesh and Uttar Pradesh - RAYH...
Traditional Musical Instruments of Arunachal Pradesh and Uttar Pradesh - RAYH...Traditional Musical Instruments of Arunachal Pradesh and Uttar Pradesh - RAYH...
Traditional Musical Instruments of Arunachal Pradesh and Uttar Pradesh - RAYH...
imrankhan141184
 
spot a liar (Haiqa 146).pptx Technical writhing and presentation skills
spot a liar (Haiqa 146).pptx Technical writhing and presentation skillsspot a liar (Haiqa 146).pptx Technical writhing and presentation skills
spot a liar (Haiqa 146).pptx Technical writhing and presentation skills
haiqairshad
 
The basics of sentences session 6pptx.pptx
The basics of sentences session 6pptx.pptxThe basics of sentences session 6pptx.pptx
The basics of sentences session 6pptx.pptx
heathfieldcps1
 
The History of Stoke Newington Street Names
The History of Stoke Newington Street NamesThe History of Stoke Newington Street Names
The History of Stoke Newington Street Names
History of Stoke Newington
 
Liberal Approach to the Study of Indian Politics.pdf
Liberal Approach to the Study of Indian Politics.pdfLiberal Approach to the Study of Indian Politics.pdf
Liberal Approach to the Study of Indian Politics.pdf
WaniBasim
 

Recently uploaded (20)

Leveraging Generative AI to Drive Nonprofit Innovation
Leveraging Generative AI to Drive Nonprofit InnovationLeveraging Generative AI to Drive Nonprofit Innovation
Leveraging Generative AI to Drive Nonprofit Innovation
 
Film vocab for eal 3 students: Australia the movie
Film vocab for eal 3 students: Australia the movieFilm vocab for eal 3 students: Australia the movie
Film vocab for eal 3 students: Australia the movie
 
writing about opinions about Australia the movie
writing about opinions about Australia the moviewriting about opinions about Australia the movie
writing about opinions about Australia the movie
 
NEWSPAPERS - QUESTION 1 - REVISION POWERPOINT.pptx
NEWSPAPERS - QUESTION 1 - REVISION POWERPOINT.pptxNEWSPAPERS - QUESTION 1 - REVISION POWERPOINT.pptx
NEWSPAPERS - QUESTION 1 - REVISION POWERPOINT.pptx
 
How to Make a Field Mandatory in Odoo 17
How to Make a Field Mandatory in Odoo 17How to Make a Field Mandatory in Odoo 17
How to Make a Field Mandatory in Odoo 17
 
A Independência da América Espanhola LAPBOOK.pdf
A Independência da América Espanhola LAPBOOK.pdfA Independência da América Espanhola LAPBOOK.pdf
A Independência da América Espanhola LAPBOOK.pdf
 
ANATOMY AND BIOMECHANICS OF HIP JOINT.pdf
ANATOMY AND BIOMECHANICS OF HIP JOINT.pdfANATOMY AND BIOMECHANICS OF HIP JOINT.pdf
ANATOMY AND BIOMECHANICS OF HIP JOINT.pdf
 
Chapter wise All Notes of First year Basic Civil Engineering.pptx
Chapter wise All Notes of First year Basic Civil Engineering.pptxChapter wise All Notes of First year Basic Civil Engineering.pptx
Chapter wise All Notes of First year Basic Civil Engineering.pptx
 
Mule event processing models | MuleSoft Mysore Meetup #47
Mule event processing models | MuleSoft Mysore Meetup #47Mule event processing models | MuleSoft Mysore Meetup #47
Mule event processing models | MuleSoft Mysore Meetup #47
 
MARY JANE WILSON, A “BOA MÃE” .
MARY JANE WILSON, A “BOA MÃE”           .MARY JANE WILSON, A “BOA MÃE”           .
MARY JANE WILSON, A “BOA MÃE” .
 
Advanced Java[Extra Concepts, Not Difficult].docx
Advanced Java[Extra Concepts, Not Difficult].docxAdvanced Java[Extra Concepts, Not Difficult].docx
Advanced Java[Extra Concepts, Not Difficult].docx
 
বাংলাদেশ অর্থনৈতিক সমীক্ষা (Economic Review) ২০২৪ UJS App.pdf
বাংলাদেশ অর্থনৈতিক সমীক্ষা (Economic Review) ২০২৪ UJS App.pdfবাংলাদেশ অর্থনৈতিক সমীক্ষা (Economic Review) ২০২৪ UJS App.pdf
বাংলাদেশ অর্থনৈতিক সমীক্ষা (Economic Review) ২০২৪ UJS App.pdf
 
RHEOLOGY Physical pharmaceutics-II notes for B.pharm 4th sem students
RHEOLOGY Physical pharmaceutics-II notes for B.pharm 4th sem studentsRHEOLOGY Physical pharmaceutics-II notes for B.pharm 4th sem students
RHEOLOGY Physical pharmaceutics-II notes for B.pharm 4th sem students
 
Main Java[All of the Base Concepts}.docx
Main Java[All of the Base Concepts}.docxMain Java[All of the Base Concepts}.docx
Main Java[All of the Base Concepts}.docx
 
Pengantar Penggunaan Flutter - Dart programming language1.pptx
Pengantar Penggunaan Flutter - Dart programming language1.pptxPengantar Penggunaan Flutter - Dart programming language1.pptx
Pengantar Penggunaan Flutter - Dart programming language1.pptx
 
Traditional Musical Instruments of Arunachal Pradesh and Uttar Pradesh - RAYH...
Traditional Musical Instruments of Arunachal Pradesh and Uttar Pradesh - RAYH...Traditional Musical Instruments of Arunachal Pradesh and Uttar Pradesh - RAYH...
Traditional Musical Instruments of Arunachal Pradesh and Uttar Pradesh - RAYH...
 
spot a liar (Haiqa 146).pptx Technical writhing and presentation skills
spot a liar (Haiqa 146).pptx Technical writhing and presentation skillsspot a liar (Haiqa 146).pptx Technical writhing and presentation skills
spot a liar (Haiqa 146).pptx Technical writhing and presentation skills
 
The basics of sentences session 6pptx.pptx
The basics of sentences session 6pptx.pptxThe basics of sentences session 6pptx.pptx
The basics of sentences session 6pptx.pptx
 
The History of Stoke Newington Street Names
The History of Stoke Newington Street NamesThe History of Stoke Newington Street Names
The History of Stoke Newington Street Names
 
Liberal Approach to the Study of Indian Politics.pdf
Liberal Approach to the Study of Indian Politics.pdfLiberal Approach to the Study of Indian Politics.pdf
Liberal Approach to the Study of Indian Politics.pdf
 

Cost and Finance in Off-Grid Access

  • 1. Cost and Finance in Off-Grid Energy Services Berkeley Rural Energy Group Daniel Soto Sonoma State University 21 March 2014
  • 2. Introduction How do we accelerate the pace of energy access, particularly the adoption of watt-scale devices How do we ensure that these devices are accessible to all income levels? Product cost and financing both important
  • 3. Parallels between US and off-grid
  • 4. Manhattan blackout People exhibit identical behavior in disaster blackouts and off-grid environments
  • 5. US Third party financing Growth in financing options led to an increase rooftop solar Financing is key to off-grid energy access Top investors target the residential solar leasing model To address the growing residential opportunity, many of the world’s leading PV manufacturers have opened new business units and launched financing and hardware product solutions for the market. More importantly, the channel used to serve the residential market has shifted quickly in the past three years. In H1 2009, third party ownership with leases represented less than 20% of the California residential PV installation market, while in H1 2012 solar leasing claimed >70% market share1. 2 0% 20% 40% 60% 80% 100% H1-2007 H2-2007 H1-2008 H2-2008 H1-2009 H2-2009 H1-2010 H2-2010 H1-2011 H2-2011 H1-2012 Third Party Other Calfornia Solar Initiative Residential Installations http://www.pwc.com/cleantech
  • 6. Outline Millennium Villages microgrids Pilot project Data gathered Lessons learned Future Work Affordability Negative recurring costs for consumers
  • 7. Millennium Villages pay-as-you-go The primary objectives were to Demonstrate system for micropayments for electricity Remove upfront consumer investment Demonstrate technical feasibility Demonstrate customer acceptance
  • 14. Data Collected Per customer power and energy consumption on 3 second intervals stored locally Hourly data sent via cellphone to a server Customer transactions and credit balances recorded Allows for observation of account balance and payment regularity
  • 15. Customer payment behavior Accurate reporting on the financial behavior of customers allows for an accurate calculation of risk and return.
  • 16. Time with positive balance 70% of consumers maintained a positive balance over 90% of the time
  • 17. Time with positive balance 0.0 0.2 0.4 0.6 0.8 1.0 Percentage of Time With Credit Available 0.0 0.2 0.4 0.6 0.8 1.0FractionofCustomers 2012-02-01 00:00:00 - 2012-03-01 00:00:00
  • 18. Positive balance and average expenditure Many customers with modest expenditures displayed consistent payment behavior. Soto et.al. ICTD 2012
  • 19. Technical outcomes What technical improvements are suggested by these observations? Low cost metering solutions Battery, inverter, generator efficiency Reliability
  • 20. Low-cost metering system UCB developed a low-cost metering system for microgrids Rosa, Madduri, IEEE GHTC 2012 System commercialized by a microgrid startup company
  • 21. Inverter and generator efficiency Inverters and generators must be large enough to safely meet the highest demand Operating below the rated load results in lower efficiency What is the financial penalty for lower efficiency?
  • 22. Load duration curves 0.0 0.2 0.4 0.6 0.8 1.0 Fraction of Availability 0 50 100 150 200 250 300 350 400 AverageHourlyPower Lighting Lighting and Freezer
  • 23. Modeling of improvements Clear sky insolation model Semi-ideal inverter model Choose smallest battery and panel to meet demand https://github.com/dsoto/pv energy balance
  • 24. Cost penalty for inverter performance 0   0.1   0.2   0.3   0.4   0.5   0.6   0.7   0.8   0.9   Day   Night   Constant   Ligh:ng   Freezer   Cost  (USD/kWh)   Typical   Flat   Soto, Modi, IEEE GHTC 2012
  • 25. Battery comparisons Using same model, what is the dependence of system cost on the battery technology Lead acid batteries Inexpensive 1000 cycles of life 80% round trip energy efficiency Lithium iron phosphate Expensive 10000 cycles of life 92% round trip energy efficiency
  • 26. System cost by battery technology
  • 27. Trade off between cost and reliability Demanding high reliability as a design point can increase cost Goal is to enable microgrid designers consider reliability in the design process
  • 28. Cost and energy shortfall probability (ESP) Lee, Soto, Modi, In Press, Renewable Energy
  • 29. Future Work Affordability of energy access Financing of energy access
  • 30. Negative recurring cost Payback is less important than a reduction in expenditures for many consumers If saving is difficult, little ability to pay above existing expenditures Pico-power product is an investment that generates returns in the form of avoided costs
  • 31. Payback periods Device Initial Cost Monthly Revenue Months Payback Solar Lantern $20 $2.00 10 Battery for phone charging $150 $15.00 10 Battery selling electricity $150 $3.00 50
  • 32. Returns and available financing 0 10 20 30 40 50 Life of term (months) 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 Equivalentrateofreturn small lantern battery in a box retail electricity Microfinance usually shorter than 12 months and above 35%
  • 33. What are the drivers of finance rate and payback period? Perceived risk Investor demand Alternative investments Transaction costs Are there conflicting requirements for donors and recipients for initial cost and sustainability?
  • 34. Impact on practitioners How do academics communicate with practitioners?