This document summarizes a capstone presentation about scaling a microgrid business. It analyzes microgrid opportunities in four locations - the Philippines, South Africa, New Jersey, and New York. For each location, it discusses key value drivers like value of lost load, levelized cost of energy, identity, and financeability. Based on the analysis, it recommends the company consider microgrid projects in the Philippines, New Jersey, and New York due to factors like high value of lost load and energy costs. It says projects in South Africa may also be feasible. The presentation concludes that no single solution fits all and microgrid projects must be tailored to individual client needs with stakeholder engagement.
Innovative Technologies for Modern Power Sector: Lessons from the United StatesCPPRCSS123
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Hannah Masterjohn | Innovation Showcase | 2014 Solar SymposiumGW Solar Institute
This is an Ignite Style presentation (five minute max presentations with slides that automatically advance every 15 seconds) that was a part of the 2014 Solar Symposium Innovation Showcase.
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The recent announcement by Tesla Motors that their patents would be released as open source has put the spotlight on open source and open standards within the renewable energy industry. Open source and open standards play a huge role in the computer and Internet industries. Just think of the impact of the open source architecture of the PC and the open communication standard HTML. Google built its business on the open source Apache server and the open source Android operating system. In the solar industry, Tioga Energy released an open source solar power purchase agreement. Could open standards and open source benefit the shared and community solar industry segment?
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By: Andrew Chant
With the Assistance of: Alex Tsopelas
Bonnie Choi
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Townsville is situated in the dry tropics of Northern Queensland and on the door step of tropical Asia. It has significant distributed energy resources, form with demonstration projects such as Townsville Solar Cities and Energy Sense Communities, an engaged council and university and substantial interest in building utility scale renewables. It is ideally positioned to be an Innovation Hub for Energy in the Tropics to help Australia and the Region achieve a cleaner, secure and affordable energy future. A collaborative and partner model would develop and integrate technologies such as renewables, storage, smart and micro grids, off grid, energy efficiency, demand management and electric transport. Disaster resiliency could also be a key focus using spatial 3D modelling.
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Find out more at: http://www.oecd.org/daf/inv/investment-policy/2014-asean-oecd-investment-policy-conference.htm
Arusha | Jun-14 | GVEP International - East Africa overviewSmart Villages
Presentation by Lindsay van Landeghem - Smart Villages Arusha workshop - June 2014
The workshop in Arusha explored the East African/Tanzanian environment for village energy, local case studies, challenges and opportunities, with a view to formulating policy recommendations for policymakers, funders, NGOs and other stakeholders the region. An important part of the workshop, and indeed the whole Smart Villages initiative work programme, was to gather evidence from existing projects that have provided or facilitated sustainable off-grid energy solutions in the developing world.The workshop gathered more than 50 experts, including policymakers, NGOs, off-grid energy entrepreneurs and others to look for solutions to providing energy to villages off the grid.
Energy Low Emission Development Strategies: A Regional Overview of Latin Am...Worldwatch Institute
Overall, Latin America and the Caribbean has traditionally been a world leader in the use of renewable energy sources for power generation (mainly hydro power), with important sub-regional differences, but the use of fossil fuels grew rapidly in the late 1900s.
There have been many initiatives on renewables and energy efficiency on the part of governments and local organizations, supported by multilateral development banks, UN organizations, international NGOs.
The recent development of non-traditional renewable energies (wind, solar, geothermal, modern biomass) is helping meet important development goals (growth, access, affordability) with a lower impact on greenhouse gas emissions.
There are still important challenges related to investment climate and business model financing, but there are many lessons to share, both on what works and what doesn´t work.
Worldwatch's goal is to build an energy system that is socially, economically and environmentally sustainable. Through our Sustainable Energy Roadmaps, we provide
supporting research; help government define goals, design strategy; and advise on implementation.
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Connect with Business Forward
Web: http://www.businessfwd.org
Facebook: http://www.facebook.com/BusinessForward
Twitter: http://www.twitter.com/BusinessForward
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Presented at a round table of the Commission for Environmental Cooperation and its Trilateral Green Building Construction Task Force during GreenBuild in San Francisco, California, on November 13, 2012.
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The Philippines have an extremely high vulnerability to climate change and high levels of energy poverty (17% of 16 M people nationwide without electricity access). They also have a high dependence on fossil fuel imports, unsustainble use of fuelwood, and an economically, socially & environmentally unsustainable energy system. This presentation discusses current trends, future challenges, and insights into bringing sustainable energy to the Philippines.
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4. Problem
“How do customers value Microgrids and
what are they willing to pay for them?”
Chris Cavanagh, National Grid at
New York Energy Week 2015
5. Methodology
1.
• Explored Microgrid opportunities
within geographies:
• Philippines, South Africa, New Jersey, New York
2.
• Designed system of four value drivers
for analysis
3.
• Conducted primary and secondary
research to reach conclusions and
recommendations
VoLL
Identity
Finance
ability
LCoE
6. Value Driver #1: Value of Lost Load (VoLL)
Elements:
• Wages (Direct)
• Lost Product
• Lost Revenues
• Lost Operating Capital
• Customer Frustration
• Management Frustration
• Liability Issues
Lower and Upper Bound VoLLs in Texas
by Electric Reliability Council of Texas (ERCOT)
Definition: the perceived value of uninterruptible power
Loss ($/kW) = ƒ (duration, season, time of day, notice)
7. Elements:
• TOU/Curtailment: DR
• Gov't Program : Grants
• Value of Upgrade: Real Estate
Value, Building Performance
• Grid Revenue
• kWh comparison to diesel/grid
Definition: (CAPEX + OPEX) / Energy
Value Driver #2: Levelized Cost of Energy (LCoE)
8. Value Driver #3: Identity
Elements:
• Green
• Cultural Acceptance
• Energy Independence
• Smart / Tech
• Resilient / Reliable
• No Noise, Comfort Factor, Health
Definition: the value of reputation and brand identity resulting from
Microgrid adoption
Hilton Ft. Lauderdale Beach Resort
distinguished itself as the destination for
green lodging and events
9. Value Driver #4: Financeability
Nation / Region
• National Credit
• National PPP
• Political Risk
• Utility Regulations
• Grants / Subsidies
Customer
• Cash
• Credit
• Underwriter
• Government Program
• Cost Savings
Asset Characteristics
• Warranty
• Performance Guarantee
• Insurance
• Standardized Contract
• Secondary Market
Definition: access to financing
Elements:
10. Philippines
Factors to Consider
• High Cost of Electricity
• Risk of Power Outages
• Government Incentives for Renewables
• Plentiful Solar and Wind Resources
Promising Industries
• Hospitals
• Universities
• Resorts
(Many others: data centers, call centers, supermarkets, OEMs, manufacturing, etc.)
VoLL
Identity
Finance
ability
LCoE
Hospitals
Universities
Resorts
11. South Africa:
• VoLL: High VoLL with “Load-Shedding”.
• IEA: 200k mini-grids by 2040
• LCoE: Modest kWh and kW rates, 12%+/yr.
• Government Commitments: 6.4GW by 2020
• Identity: A handful of target regions (Cape Town, REP)
• Wineries, Commercial, Light Manufacturing, Restaurants, Hospitals,
Retail, etc.
• Financebility: Poor Sovereign Credit, Variable Client Risk
• International Customers or Fund Support, i.e.
• Competition:
• Partners?:
VoLL
Identity
Finance
ability
LCoE
12. United States
• Aging US Power Grid Blacks Out More Than Any Other
Developed Nation (DoE/NERC)
• Loses power 285% more often than in 1984
• Costs American businesses $150 billion per year
• US Microgrid Capacity Will More Than Double by 2020—
and Include a lot More Renewables (Greentech Media)
• Commercial & Industrial will lead growth, with 40% in 2020
• Renewables from 6% today to 23% in 2020
13. New Jersey
VoLL
• Hurricane Sandy cost businesses in NJ $30B
LCoE
• Average cost of electricity: Medium/High
• Demand charge: High
Identity
• Market acceptance, but other factors more important
than “green”
Financeability
• Highly developed standards
• BPU energy storage program, ERB
• NJ PACE coming online for 2016
VoLL
Identity
Finance
ability
LCoE
14. New York
Progressive Energy Vision
• REV, RPS, Emphasis on Resilience
LCoE
• Extremely High kWh Rates and kW Charges
VoLL
• Sandy, Irene, 2003 blackout.
Identity
• New Yorkers Prefer Green
Financeability
• Federal Funding – HUD, RISE: NYC, DoE
• State Level – Green Bank; NYSERDA, NY Prize
• Utilities - ConEd DMP and BQDM
Promising Industries
• Critical Infrastructure
• Universities/Colleges, Libraries, Business Parks, Factories, Big-Chain Supermarkets
VoLL
Identity
Finance
ability
LCoE
NYC
Mid-Hudson
Long Island
15. Recommendations
Should UGE consider Microgrid projects in these locations?
• Philippines: Yes – Very high VoLL and LCoE. Focus on well-funded private employers in industries most
vulnerable to unreliable grid and high cost of electricity
• South Africa: Maybe – Rates increasing, but still low. Extremely high VoLL. Launch now in Cape Town if
feasible, future rate climate is promising
• New Jersey: Yes – High VoLL and LCoE. Leverage demand charge management, frequency regulation
and SRECs
• New York: Yes – High VoLL and LCoE. Abundant financing mechanisms. Leverage Public/Private
Partnerships to deploy at scale.
No “one-size-fits-all solution” - Microgrid projects must be tailored to individual clients’ needs
Stakeholder engagement and relationships are essential