DFID is working to expand access to affordable clean energy in developing countries through research and innovation programs. Key challenges include the high cost of energy storage and integrating variable renewable sources like solar into electric grids. DFID supports projects like Transforming Energy Access that test new technologies and business models for off-grid energy delivery. Energy storage projects funded through Innovate UK aim to lower battery costs and develop other storage solutions like hydrogen. Addressing the barriers to effective and low-cost energy storage is a priority for expanding energy access in developing nations.

1. Energy storage and universal access to
modern energy services
Alistair Wray, DFID
11 May 2016
Frontier Energy Storage Technologies and Global
Energy Challenges
Smart Villages and University of Edinburgh

2. Outline
1. Development context and RE market dynamics
2. DFID research and innovation programmes
3. Energy storage barriers and opportunities
4. Discussion of challenges

3. Development context and drivers for
DFID energy and innovation funding
• 1.1 bn lack of access to modern energy services, mostly in SSA and SA
• Grid based systems are often insufficient, unreliable and expensive,
constrained by poor sector policies, governance and lack of investment
• In addition, large numbers connected but “under-served”; limitations to
grid extension solutions in meeting needs of poor and for productive uses
• Increasing opportunities for scaling up off-grid clean energy solutions,
expanding local grids, and smarter integration with grid systems
• Sustainable Development Goal for Affordable Clean Energy (SDG7) has
reinforced the central role of energy in development
– Universal access to modern energy services by 2030;
– Doubling the global rate of improvement of energy efficiency by 2030;
– Doubling the share of renewable energy in the global energy mix by 2030.

4. RE deployment - context
The solutions for expanding access to clean energy will be a
mix of grid expansion (generation, transmission and
distribution), mini-grid development and off-grid expansion:
– The International Energy Agency (IEA) estimates, based on population
densities and distributions, that in order to achieve universal electricity
access in SSA, the most economic route would be 40% with grid
connections, 40% mini-grid (isolated networks) connections and 20% stand-
alone household systems – although this will vary between countries.
– Investment in renewables is increasing ($318bn in 2014 and 5 times figure
for 2004). Solar accounts for nearly third of capacity additions globally, split
between small and utility scale installations. Solar PV offers potential for grid
and off-grid solutions but overall this is largely unrealised on Sub-Saharan
Africa. (New Energy Outlook 2015, BNEF)

5. Scale of Demand and nature of Supply :
Focus on Africa

6. Market dynamics –opportunities and
challenges
• Rapid expansion of off-grid market (costs of PV; LED lighting; mobile
phone charging; business models based on mobile technologies and
PAYG) - platform for progressing up energy and development ladder

7. 0
50
100
150
200
250
300
350
1/1/2011 1/1/2012 1/1/2013 1/1/2014 1/1/2015 1/1/2016
Thousandsofunits(cumulative)
Date
Installations
The Market Potential is Real:
M-KOPA Growth Case Study (Kenya)
7
£475k
REAC
T
£2m DFID/Shell
Foundation
£300k
Innovation
£500k
REAC
T
£2m
NEADM
$10m (soft) debt
$14m debt/equity
$3.5m Series A
equity
$19m equity
DFID support
Others

8. DFID Energy and Innovation Portfolio- current projects
Addressing
Barriers to
Sustainable
Energy
Access for
All
Scaling up
the Use of
Clean
Energy
Sustainable Energy, Access and Gender (SEAG)
research on energy and gender, RE resources and
impact.
M4D Utilities mobile enabled service provision –
half is energy, managed by GSMA (mobile phone
trade association)
New Energy Applications and Delivery Models
(NEADM) innovation scale up with Shell Fdn.
Green Mini Grids Action Learning and Evaluation
Moving Energy Initiative MEI sustainable energy
provision in humanitarian situations,
Transform: Innovation partnership with Unilever
The
Challenges
Current projects
.ESMAP addresses a range of energy sector policy
and best practice options guidance
Understanding Sustainable Energy Solutions
(USES) partnership with EPSRC, DECC.
Scaling up clean cooking solutions includes
research into cook stove standards, behaviour
change, market development etc.
Bio-energy for Sustainable Local Energy
Services and Energy Access in Africa
Some expected outputs

9. Technologies and Innovation

10. Future Plans
Addressing
Barriers to
Sustainable
Energy
Access for All
Scaling up
the Use of
Clean Energy
Scaling up existing successful programmes:
M4D GSMA strategic partnership for mobile enabled
applications and digital inclusion
Moving Energy Initiative MEI (£3-8m) for pilot testing
phase of humanitarian sustainable energy provision
Crowd Power trialling crowdfunding platforms for peer to
peer solar (included in TEA above)
Clean Cooking expansion with Global Alliance for CC
ESMAP (policy, best practice and knowledge , including
RE mapping
The Challenge:
Global Goal 7 by 2030
Going Forward
New Pipeline Programmes
Low Energy, Inclusive Appliances
Frontier Technologies with EPIC
DFID/DECC Mission Innovation
Where we want to be
TEA - A major new clean energy access R&D
programme Transforming Energy Access
(£65m):
- Expanded partnership with Shell Foundation (TIME)
- Open calls with Innovate UK Energy Catalyst
- Clean Energy Innovation Partnerships (incl.
crowdfunding)
- Skills and capacity building
Energy and Innovation Portfolio-
future pipeline options

11. Energy storage barriers and
opportunities
• Opening up technologies and reducing costs of energy storage
Retail price of pico-solar off products that provide lighting service of 120 lm for four hours/d
• Increasing use of smart technologies, data management and mobile
technologies (condition monitoring, energy use profiling) - leap-frogging
• Smart energy demand management - reducing storage needs
• High energy efficiency of appliances and productive energy using
equipment – reducing storage needs
• Enabling distributed generation; integrating variable renewable energy
into grid (local and national)

12. Outline of relevant DFID research
and innovation support
• Energy Africa initiative - household solar, country compacts,
toolkits and innovationa nd business support
• Innovation – supporting early stage innovation through open
competitions, prizes; scaling up promising innovation and
business models via seed funding for early stage businesses
• Utility scale variable renewable energy grid integration (via
ESMAP)
• Pipeline plans: Low energy inclusive appliance (LEIA);
Frontier Technologies promotion; cross UK government
initiatives (Mission Innovation, clean energy funds)

13. Incubation /
R&D
EADFTEA
ACE
EA Compacts
Growing
businesses
• Technology innovation
research and support
• Business model
development and
innovation;
• Skills and expertise to
support prototyping
• Demand based
approach across Africa
and Asia
Market development
interventions:
• Compact related
policy/regulatory
reform in 14 countries;
• Start up support for
~40 businesses
• Test innovative market
based delivery
• Working capital to
accelerate growth
of businesses
Nurture and incubate
concepts and early
stage ventures
Prime enabling
environment &
business investment
readiness
Tackle financing
constraints to
unleash growth
Potential
growth path of
a SME
Proposed Integrated Energy Africa Offer
Need
Interventions
Aim
Time
Scale
Resource
commitment
Potential Co-
Funders /
Mobilisation
£65m £65m £30m
• CDC currently evaluating investment
opportunity
• AfDB (£30m + further £30m 2nd phase)
• Guarantco (£60m guarantees to 2nd Phase)
• Power Africa / USAID
• Shell Foundation - £30m
• Innovate UK - £15m
• Other funding (tbc)
• First phase £24m
(estimated from partners
such as Power Africa,
Canada, GOGLA, WB/IFC,
Sweden)
• Plus min 1:1 leverage
Investment
readiness /
Conducive
Market

14. Transforming Energy Access (TEA)-
research and innovation
Project Purpose: To address critical evidence gaps and test
innovative technology applications and business models that
will accelerate the provision of affordable, clean energy based
services to poor households and enterprises
• Early stage support for innovation development and related
resource requirements
• Build on and scale up previous proven innovation ventures
• Holistic approach with focus on :
–research, development, demonstration and incubation of new
technologies and business models (Innovate UK Energy Catalyst)
–incentivising innovation and entrepreneurship; (Shell Foundation)
–supporting collaborative partnerships; (scoping)
–supporting development of local skills and expertise (scoping)

15. TEA Energy Catalyst component
• DFID will contribute to Energy Catalyst rounds to support the best
innovative proposals from UK business or research organisations, who
need to identify the relevance to developing country energy challenges.
• The current Energy Catalyst application process will be followed. The
briefings and project budget limits and intervention rates also reflect those
currently applied by Energy Catalyst.
• An additional question for applications will be included: "Do you
consider that your application could be relevant to the problems of
developing countries?", with a "yes/no" answer to identify "DFID-
relevant" applications.
• DFID support can include the early, mid & late stages. The parameters
and features of these awards (process, duration, co-funding etc) will be
the same as for the earlier Energy Catalyst rounds.
• Themes include Energy Networks and System Integration (storage
technologies, smart grids, integration and system design etc)

16. TEA Energy Catalyst process
• “Guidance for Applicants" documents reflects additional guidance on
completion of the question where DFID requirements are set out.
• "DFID-relevant" project applications (only) will be allowed with
encouragement to include overseas partners from developing countries;
however, overseas partners will not be able to lead project.
• UK partners in funded DFID projects will be contracted, grant-paid and
monitored directly by Innovate UK. UK leads will undertake due diligence
for overseas partners and take responsibility for payments made.
• Innovate UK's assessment and scoring processes remain unchanged,
although additional assessors may be used.
• EC Round 4 is now live (closing 8th June)
https://www.gov.uk/government/publications/funding-competition-energy-catalyst-round-4

17. Innovate UK Energy Storage Projects –
portfolio to date (inc EC Rounds 1-3)
• 31 live projects in 3 competitions (Energy Catalyst; Smart
Systems; Localised Energy Systems); £15m live grants
• 6 themes
–12 business models, trading and systems integration - £8.7m
–7 battery and flow battery technology - £2.5m
–5 heat storage - £1.6m
–3 H2 and chemical storage - £0.9m
–3 power converters - £0.5m
–1 flywheel - £0.6m

18. ESMAP Variable Renewable Energy
Grid Integration Support programme

19. Supporting grid variable RE grid
integration

20. Discussion- priority energy storage
challenges for developing countries
• What are the barriers to more effective energy storage?
• Potential for technology developments; new business
models?
• Complementary role of mobile technologies? Smart
community grid management?
• Are the incentives for R,D & D right?
• What applications and businesses will drive innovation?
• Elephant in the room - addressing the electricity clean
cooking challenge
• Are there other gaps to be addressed?