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![14EARTHSPARK
I N T E R N A T I O N A L
INTEGRATED RURAL ELECTRIFICATION
E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N
Central grid
ENERGY ACCESS MARKET
SEGMENTATION BY LOCATION AND
CONSUMPTION
Grid extension + infill
Microgrids + captive
[Battery charging
+ nanogrids]
Stand-alone systems
(small and large)](https://image.slidesharecdn.com/integratedruralelectrification-20150508f-150508130849-lva1-app6892/85/Integrated-Rural-Electrification-14-320.jpg)
![18
STATE OF EDH OPERATIONS IN
HAITI
• 25% capacity factor from EDH assets
• ~$0.35/kWh tariff
• Very high losses, low cost recovery:
• “EDH only brings in revenue for barely 20% of the electricity it put
out. The other 80% is covered by state subsidy…” (1/22/2013) [1]
• Official EDH numbers are more generous: ~50% losses; ~18%
technical/32% non-technical (November, 2006) [2]
• Varying reliability in most central grids, from 6
hrs/day to 20-24 hrs/day
EARTHSPARK
INTERNATIONAL
WORLD BANK
OFF-GRIDELECTRICITY
5/6/2015
18EARTHSPARK
I N T E R N A T I O N A L
INTEGRATED RURAL ELECTRIFICATION
E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N](https://image.slidesharecdn.com/integratedruralelectrification-20150508f-150508130849-lva1-app6892/85/Integrated-Rural-Electrification-18-320.jpg)
![33
STATE OF IPP OPERATIONS IN HAITI
• Despite high PPA rates, EDH is an unreliable off-taker:
• E-Power, backed by IFC, is newest IPP in Haiti. 30 MW HFO plant began
operations on January 13th, 2011. [1]
• “Delivery of energy interrupted for nearly 3 months because of lack of financial
resources to buy fuel needed to operate the [E-Power] plant, due to government
debt over 12 million representing 3 months in arrears.” (5/10/2013) [2]
• “…Electricity d’Haiti (EDH) can devote only 20% ($1 million) of its monthly
revenues to pay the suppliers. In addition, the public treasury provides a monthly
subsidy of $5 million, bringing the envelope to $6 million. However, the invoice of
the 3 providers is $12 million dollars monthly…due to the arrears, the E-power
company decided on June 19, 2013 to turn off its engines connected to the
network of Electricity d’Haiti.” (6/27/2013) [3]
• High cost of IPP generation: $0.15 - $0.16/kWh for
HFO; $0.22 - $0.26/kWh for LFO plants
EARTHSPARK
INTERNATIONAL
WORLD BANK
OFF-GRIDELECTRICITY
5/6/2015
33EARTHSPARK
I N T E R N A T I O N A L
INTEGRATED RURAL ELECTRIFICATION
E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N](https://image.slidesharecdn.com/integratedruralelectrification-20150508f-150508130849-lva1-app6892/85/Integrated-Rural-Electrification-33-320.jpg)
Uploaded byLeonardo ENERGY
Integrated Rural Electrification
The document discusses the challenges and solutions related to integrated rural electrification in Haiti, emphasizing that energy supply is critical for improving productivity and unlocking potential in communities. It outlines various models for energy access, including microgrids and smart meters, and the importance of market segmentation and efficiency in addressing energy poverty. The presentation highlights the evolving business models, emphasizing the role of clean energy access in enhancing agricultural productivity and overall community well-being.
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Integrated Rural Electrification
- 1. Integrated Rural Electrification Leonardo EnergyWebinar 8 May 2015 Allison Archambault
- 2. 2EARTHSPARK I N TE R N A T I O N A L INTEGRATED RURAL ELECTRIFICATION E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N Objectives • Discuss evolving models (supply ≠ demand) • Market segmentation: bull's-eye or stair step • Become and efficiency activist • Identify accompanying opportunities
- 3. 3EARTHSPARK I N TE R N A T I O N A L INTEGRATED RURAL ELECTRIFICATION E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N EarthSpark International We build clean energy access in Haiti. R+D Incubation Social enterprises
- 4. ENÈJI PWÒP: CLEANENERGY RETAIL 4EARTHSPARK I N T E R N A T I O N A L INTEGRATED RURAL ELECTRIFICATION E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N
- 5. 5EARTHSPARK I N TE R N A T I O N A L INTEGRATED RURAL ELECTRIFICATION E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N EKO PWÒP: “SMART GRID” FROM SCRATCH
- 6. SPARKMETER: LOW COST,HIGH FUNCTIONALITY SMART METERS 6EARTHSPARK I N T E R N A T I O N A L INTEGRATED RURAL ELECTRIFICATION E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N
- 7. POWERINGAGRICULTURE MICROGRID EXPANSION • 54 430 customers • Diesel hybrid solar- diesel MILL ELECTRIFICATION • Tap microgrid electricity to improve quality and reduce costs BREADFRUIT PROCESSING • Extend shelf life from 3 days to 18 months 7EARTHSPARK I N T E R N A T I O N A L INTEGRATED RURAL ELECTRIFICATION E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N
- 8. SUPPLY IS <HALF OF THE EQUATION 8EARTHSPARK I N T E R N A T I O N A L INTEGRATED RURAL ELECTRIFICATION E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N
- 9. MILL ELECTRIFICATION 9EARTHSPARK I NT E R N A T I O N A L INTEGRATED RURAL ELECTRIFICATION E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N
- 10. BREADFRUIT PROCESSING 10EARTHSPARK I NT E R N A T I O N A L INTEGRATED RURAL ELECTRIFICATION E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N
- 11. THE PROBLEM NO ELECTRICITY= LOWPRODUCTIVITY 11EARTHSPARK I N T E R N A T I O N A L INTEGRATED RURAL ELECTRIFICATION E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N
- 12. THE GOAL AFFORDABLE, RELIABLE ELECTRICITY= UNLOCKEDPOTENTIAL CHILDREN CAN STUDY BUSINESSES STAY OPEN ENABLES REFRIGERATION BETTER HEALTH OUTCOMES VALUE-ADD TO AGRICULTURE 12EARTHSPARK I N T E R N A T I O N A L INTEGRATED RURAL ELECTRIFICATION E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N
- 13. VIRTUOUS CYCLE Agricultural businesses strengthen the grid. Thegrid unlocks agricultural value. 13EARTHSPARK I N T E R N A T I O N A L INTEGRATED RURAL ELECTRIFICATION E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N
- 14. 14EARTHSPARK I N TE R N A T I O N A L INTEGRATED RURAL ELECTRIFICATION E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N Central grid ENERGY ACCESS MARKET SEGMENTATION BY LOCATION AND CONSUMPTION Grid extension + infill Microgrids + captive [Battery charging + nanogrids] Stand-alone systems (small and large)
- 15. 15EARTHSPARK I N TE R N A T I O N A L INTEGRATED RURAL ELECTRIFICATION E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N MARKET SEGMENTATION WITH MULTI- TIER MATRIX MEASURING ACCESS TO HOUSEHOLD ELECTRICITY Source: ESMAP “A New Multi-Tier Approach to Measuring Energy Access”
- 16. THE “PERFECT” ISTHE ENEMY OF THE GOOD Is central grid electricity an option for rural electrification in Haiti? 16EARTHSPARK I N T E R N A T I O N A L INTEGRATED RURAL ELECTRIFICATION E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N
- 17. 200 MW 11 MW 16MW 8 MW 4 MW 5 MW LOCATION AND CAPACITY OF CENTRAL GRIDS IN HAITI 17EARTHSPARK I N T E R N A T I O N A L INTEGRATED RURAL ELECTRIFICATION E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N
- 18. 18 STATE OF EDHOPERATIONS IN HAITI • 25% capacity factor from EDH assets • ~$0.35/kWh tariff • Very high losses, low cost recovery: • “EDH only brings in revenue for barely 20% of the electricity it put out. The other 80% is covered by state subsidy…” (1/22/2013) [1] • Official EDH numbers are more generous: ~50% losses; ~18% technical/32% non-technical (November, 2006) [2] • Varying reliability in most central grids, from 6 hrs/day to 20-24 hrs/day EARTHSPARK INTERNATIONAL WORLD BANK OFF-GRIDELECTRICITY 5/6/2015 18EARTHSPARK I N T E R N A T I O N A L INTEGRATED RURAL ELECTRIFICATION E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N
- 19. THE “BEST” SOLUTION Aremicrogrids best for rural electrification? • It depends • Much can go wrong • Multi-disciplinary planning and community partnership are key • Technical note: HOMER • Avoid ‘dump and run development’ • What is the long-term plan? 19EARTHSPARK I N T E R N A T I O N A L INTEGRATED RURAL ELECTRIFICATION E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N
- 20. PRIORITIZE ENERGY SERVICESNOT KWH 20EARTHSPARK I N T E R N A T I O N A L INTEGRATED RURAL ELECTRIFICATION E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N
- 21. MULTI-DISCIPLINARY MARKET STUDY 21EARTHSPARK IN T E R N A T I O N A L INTEGRATED RURAL ELECTRIFICATION E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N
- 22. MICROGRID COST STRUCTURE •Household distribution is highly dense, so marginal connection cost is small – very low per-customer costs • Partial recovery of per-customer fixed cost through a fixed connection fee • Not all revenue collected is through pay-as- you-go. • Larger customers make up ~30% of load • Extremely reliable demand • Some pay for electricity on monthly, post-pay basis. • Some pay via PPA – long-term “bankable” contract for energy 22EARTHSPARK I N T E R N A T I O N A L INTEGRATED RURAL ELECTRIFICATION E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N
- 23. BENEFITS OF PRE-PAYAND PAY-AS- YOU-GO • No cost to collect payments • Perceived as more fair to customers who are not always present UNLOCKING THE BUSINESS MODEL • Many components to success. • Technology is essential – low-cost smart metering system 23EARTHSPARK I N T E R N A T I O N A L INTEGRATED RURAL ELECTRIFICATION E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N
- 24. 24EARTHSPARK I N TE R N A T I O N A L EFFICIENCY INTEGRATED RURAL ELECTRIFICATION E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N
- 25. 25EARTHSPARK I N TE R N A T I O N A L EFFICIENCY: #wastelessdomore INTEGRATED RURAL ELECTRIFICATION E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N
- 26. 26EARTHSPARK I N TE R N A T I O N A L INTEGRATED RURAL ELECTRIFICATION E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N ACCOMPANIMENT Value Chain Synergies
- 27. 27EARTHSPARK I N TE R N A T I O N A L INTEGRATED RURAL ELECTRIFICATION E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N ACCOMPANIMENT Value Chain Synergies Fuel switching (transit + cooking)
- 28. VIRTUOUS CYCLE Productive businesses strengthen the grid. Thegrid unlocks productive use value. 28EARTHSPARK I N T E R N A T I O N A L INTEGRATED RURAL ELECTRIFICATION E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N
- 29. 29EARTHSPARK I N TE R N A T I O N A L INTEGRATED RURAL ELECTRIFICATION E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N ACCOMPANIMENT • Value Chain Synergies • Fuel switching (transit + cooking) • Agriculture + Conservation • Feminist Electrification
- 30. 30EARTHSPARK I N TE R N A T I O N A L INTEGRATED RURAL ELECTRIFICATION E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N Conclusions • Business models are evolving (supply ≠ demand, smart meters, storage, finance) • Market segmentation is both bull's-eye and stair step • Everyone needs to be an efficiency activist • Accompanying opportunities can augment the bottom line and enhange social benefits
- 31. THANK YOU EarthSpark International AllisonArchambault allison@earthsparkinternational.org
- 32. ENERGY POVERTY IS EXPENSIVE 75%of households without electricity access in Haiti Households spend • $10/mo. on kerosene & candles • $4/mo. on cell phone charging 32EARTHSPARK I N T E R N A T I O N A L INTEGRATED RURAL ELECTRIFICATION E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N
- 33. 33 STATE OF IPPOPERATIONS IN HAITI • Despite high PPA rates, EDH is an unreliable off-taker: • E-Power, backed by IFC, is newest IPP in Haiti. 30 MW HFO plant began operations on January 13th, 2011. [1] • “Delivery of energy interrupted for nearly 3 months because of lack of financial resources to buy fuel needed to operate the [E-Power] plant, due to government debt over 12 million representing 3 months in arrears.” (5/10/2013) [2] • “…Electricity d’Haiti (EDH) can devote only 20% ($1 million) of its monthly revenues to pay the suppliers. In addition, the public treasury provides a monthly subsidy of $5 million, bringing the envelope to $6 million. However, the invoice of the 3 providers is $12 million dollars monthly…due to the arrears, the E-power company decided on June 19, 2013 to turn off its engines connected to the network of Electricity d’Haiti.” (6/27/2013) [3] • High cost of IPP generation: $0.15 - $0.16/kWh for HFO; $0.22 - $0.26/kWh for LFO plants EARTHSPARK INTERNATIONAL WORLD BANK OFF-GRIDELECTRICITY 5/6/2015 33EARTHSPARK I N T E R N A T I O N A L INTEGRATED RURAL ELECTRIFICATION E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N
- 34. CHALLENGES FOR PAY-AS- YOU-GOMICROGRIDS Challenge Counterpoint Heavily subsidized central grid tariffs are less expensive While subsidized, central grid tariffs in Haiti are a relatively high $0.35/kWh Un-electrified households do not spend sufficient sums on energy services Households spend an average of $14/household/mo. Cost structure: cash flow mismatch between customer payments and debt service on fixed costs Let’s talk about this in more detail… 34EARTHSPARK I N T E R N A T I O N A L INTEGRATED RURAL ELECTRIFICATION E N E R G Y S U P P L Y I S L E S S T H A N H A L F O F T H E E Q U A T I O N