micro grid1.1
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Micro-gridSupply of energy to a hamlet using multiple sources of energy & managing the S-D
complication
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Advantages of micro-gridMicrogeneration Large-scale generation
Waste Heat by-product
Can be used for heating purposes known as micro combined heat and power.
Used in some privately owned industrial CHP installations.
Transmission losses
Lower losses Higher losses(8% of power generated globally & 26% in India is lost in AT&C)
Changes to Grid
Reduces the transmission load & thus reduces the need for grid upgrades
Increases the power transmitted, and the need for grid upgrades
Reliability and Maintenance requirements
PVs, Stirling engines, and certain other systems, are usually extremely reliable.
Managed by power company.
Sales-pitch exaggerations
Focused on the "green-ness" of energy Focused on the energy crisis.
Ability to meet needs
Renewables: Actual production is only a fraction of nameplate capacity.
Fuel based systems are fully dispatchable
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Micro-grid solution: Opportunity
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
Technology-wise cost No. of replacements Capacity overshoot(DoD)0
0.5
1
1.5
2
2.5
3
3.5
$bn market for Microgrid
Source: http://www.marketwire.com/press-release/microgrid-market-to-reach-1492-billion-by-2020-sbi-bulletin-1675505.htm
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Why now?
27.04.2011
15.06.2011
27.07.2011
07.09.2011
19.10.2011
30.11.2011
11.01.2012
22.02.2012
04.04.2012
16.05.2012
27.06.2012
08.08.2012
19.09.2012
31.10.2012
12.12.2012
30.01.20130.600000000000001
0.800000000000001
1
1.2
1.4
1.6
$/Wp of modules
Cost economicsFalling renewables LCOE vs rising APPCMost technological cost hurdles removedDirect consumers more creditworthy than
SEBsPolicy landscape
July blackout: Green Energy corridor report suggests micro-grid
Oil import bill: Energy security enhancement by means of DDG
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 economyRural development needs energy at the
last mileRGGY implementation
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Industrial applications- REC
Captive + REC RESCO + REC
Assumptions Captive + REC
Tariff escalation 5 %
REC prices 2012-17: Rs.9.3 per kWh2017-22: Rs.2.2 per kWh2017 onwards: Rs.0
Capex Rs. 8.8 cr/MW
Risk to BOO model mitigated by microgridRESCOs can schedule PV power
procurementScalable kits of 10kW can keep
strides with business growth of industry
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Solar water pumpsFarmer 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
SPV panels 1800 Wp
Motor pumpsets 2 HP Centrifuge DC
Operating voltage 60 V DC
Borewell size 150 mm dia
Suction head 7m to 10m
Pumping quantity 1,40,000 lpd
Major Barriers to implement
• Select kharif crops need water only in the 7-9 am & 5-7 pm when its dawn & dusk.
• Average rural monthly income is Rs. 3000 per household, hence affordability an issue.
• Inaction based on poll promise
Attractive EMI
Modular storage systems
BOO
model
A variation of the agricultural pump can also be used in salt pans & prawn cultivation, where DG is harmful. This by itself is a Rs.5000 crore market.
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Cold storage
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.
Requirement for storage: No need of storage for fishing but for agriculture & poultry, mobile cold storage vans could also be a option
PolicyThere is no specific policy in this direction, but load mitigation can greatly be done by solar.
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Rural ElectrificationOne 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.IRR of 12% to 18% expected with 80% D-E ratio.
Technology options:Small distance (upto 1km, DC transmission recommended)Centralized battery storage (Li-ion, Flow batteries)
Success stories• Gram Power• Mera Gaon• SELCO
Source: MoEF, http://www.jseejournal.com/JSEE%202012/PDF%20file%20JSEE%203(1)%202012/7.Energy%20scenarios%20pp.%207-17.pdf
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Net metering-Slab reduction in domestic rooftops
• 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
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Requirements of a micro-grid
•Solar ( PV, CSP)
•Wind•Bio-mass
Distributed Generation
•Energy storage
•Diesel Generator
•Fuel cell
Steadier backup of power
•Net meters, PQM, OMS, Output forecasts
•Radio/micro-wave 2 way communication
Communication control
•Batteries: Li-ion, Pb-Acid, VRB, ZBB
•Reactive loads: Flywheel, capacitors, RLC circuit
•Grid level: Pumped hydro
Energy storage
Eliminates T&D losses, and enhances usage of renewables.
Unreliability of RE is greatly reduced.
Schedules supply & demand of power.
Shifts peak, reliable power supply, compliments PV.
Use Component Sub-component
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Energy storage- Shortlisting based on form of energy
Forms of energy storage Major Advantages Key disadvantages
Electrochemical battery Uses DC to store, and fits the different scales of PV
Unfit for very large size & very small sizes
Pumped storage Best fitted for GW level storage
Very site specific
Capacitors (Ultra-small) Intermittent voltage & frequency regulation
Expensive & non-scalable
Flywheels Load balancing & power quality management
Bulky & stores relatively lesser energy
Cryogenics Compact & mechanical based-less prone to failure
Unproven & risk of 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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Battery economics
• 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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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/$
Self discharge rate 3-20%/month 10-20 years8%@21,15%@40,31%
@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
Purpose augmented with solar
Small rooftops with capex constraints
Ideal for solar with no space constraints & places where life-time costs are more important than one-time costs
Where space is a constraint & where fluctuations in duty cycle of recharge is required. Grid level storage
Likely to be a fit between Li-ion & Na-S
Large farms, and integratable with Li-ion for medium size applications.
Major disadvantage Low life time Occupies high space High capexNa should be in molten state
High operating temp; Freezes if left in the
cold Too much space.
Scope for new technology
SMF,AGM, Tubular are being used but no paradigm shift expected.
V salts with more charge density, Zn-Br, Fe-Cr becoming easy substitutes
Li chemistry still defined on a usage based, hence chemistry optimisation scope remains
New ways of coping to keep Na warm researched widely.
Ni-Fe or Na-Ni-I might occupy lesser space
Substitute bromide with other hallides.
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LAC comparisons
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
Bulk applications: 1 MW onwards, calculations done for a 20MWp solar farm and 3hrs of storage, 25 yrs system size
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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LAC comparisons- Distributed generation
Technology-wise cost Na-S Li-ion Zn-Br VRB Na-Ni Li-Fe Pb-AcidNo. of replacements 5 3 2 2 10 3 16Capacity 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 crTotal yield (MWh) 987 1039 947 947 987 1034 1011
LCOE 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.
Bulk applications: 10kW onwards, calculations done for a 100 kWp solar farm and 5hrs of storage, 25 yrs system size & 2 cycles per day
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Gap analysis for integrating battery with PV
What we have
What we don’t
T&D team from EPC
PV-Stand alones
Team to design grid
interactive PV
systems
Energy storage with
grid interaction
Multiple renewable
resource
management
•Zn-Br redox batteries
•Micro-grid installation
•Multiple resource management
ZBB•Na-Ni
battery•Teleco
m solution
•EVs
Fiamm
•Li-ion,Ni-Cd & Pb-acid batteries
•Micro-grid installation
•Evs
BYD
•PV EPC•Li-ion
from Durion
•Micro-grid
Meeco
Whom we could partner with..
Other storage providers: Gleideweister (VRB), SAFT (Li-ion), High-view storage
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Key technology comparisons
Battery technology classification
Technologies commercially available
Players Country
Flow batteries Zinc Bromide ZBB USA
Flow batteries Vanadium Redox Cellstrom(Gleidweister)
Switzerland
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 based
Meeco, BYD EU,China
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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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Evaluation of key probablesCompany Name ZBB Fiamm BYDProducts portfolio PIU,micro-grid, Zn-Br
batteries; Integration with other batteries possible
Na-Ni, Ni-Cd, Lead Acid batteries; Electric vehicles, Integration with other batteries possible
Lead Acid,Li-ion(2 chemistries) batteries; PCU, multi-source mgmt
Core strengths Integratable with other batteries also
Rich experience in micro-grids in Italy
Very broad product portfolio
Weakness Arguably a start-up Not open to varied battery applications
Chinese tag
Strategic threat Fragile finances being a start-up
Is a PV module mfg also, might set-up a shop on their own for micro-grids in India
Economics Suitable for MW farms & kW level set-ups
Only for kW but long duration storage like telecom
Competes at every level
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Reason for rejection of other playersCompany 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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Present players in micro-gridSmall Indian players• Apnagaon• Meragoan• Husk power• Kuvam energy• Gram power
Foreign govt. agencies promoting micro-grid• NEDO-Japan• EBTC-EUDomestic battery manufacturers•Rocket•Amaraja•Amco(is entering into JV with SAFT)
Capgemini HCL infosystems
General Electric
Power Grid
Indian companies trying to venture into micro-grid & smart-grid
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