Optimizing hybrid renewable energy microgrids for off-grid ...

1 Optimizing hybrid renewable energy microgrids for off-grid and grid-tied environments w w w . m i c r o g r i d i n n o v a t i o n . c o m The microgrid opportunity around the world continues to grow significantly. One recent report forecasts a compound annual growth rate (CAGR) of 12% between 2016-2022, reaching $35 billion by 2022. The reasons for this expected positive development include the falling cost of solar energy , advances in energy storage, the drive to mitigate climate change, and the cost savings associated with minimizing fossil fuels in remote generation systems. In addition, microgrids will play a central role in bringing electrification to rural and developing regions in which access to reliable, clean and affordable energy is a high priority.

2 The 7th edition of the Microgrid Global Innovation Forum, September 11-13, 2018 in London, focuses on microgrid advances, case studies and applications in EMEA, Asia-Pacific, and Latin America. The emphasis is on maximizing the effective use of renewable and distributed energy resources, refining the positive business model for a range of microgrid deployments, and sharing real-world case studies in both grid-tied and off-grid /remote environments. Microgrid feasibility, design, and implementation Refining the business case for off-grid , remote, and island microgrids Solar + storage advances Project financing and investor perspectives Determining the correct technology mix for hybrid energy systems Advanced battery, fuel cell, and flow battery technologies Microgrid power control, management, and integration Integrating distributed renewable energy resources into the grid Effective project evaluation, implementation.

3 And management Regulatory and public policy advances Standards and interoperability issues Market drivers and opportunities worldwide And more Sponsors: Organized by: "Great overall view of microgrids , problems, advantages and financing. Real case scenarios and feedback from developers, and pilot projects." -- Pedro Sonne, EFACEC "Great conference, a learning and sharing place for all the actions of microgrids . Practical experiences with real projects." -- Stephane Jamet, ENEDIS (France DSO, an EDF subsidiary) Agenda Note: Subject to change Tuesday, 11 September 2018 13:00 - 17:00 Pre-Conference Workshop: Microgrid Economics Analysis and Financing Wednesday, 12 September 2018 07:30 - 08:30 Registration and Continental Breakfast BUSINESS MODELS, MARKETS AND FINANCING ISSUES 08:30 - 09:00 Universal Basic Utility access .

4 Insights and Challenges from a For-Profit Model Bruno Lopes Director of Technology Robert Cunningham Director of Operations Bruno and Robert will speak on the concept of providing universal basic utility access (UBUA) for all through a for-profit business model as embodied by They will discuss the general premise of UBUA and its potential to radically improve the livelihoods of communities around the globe. Next, they will comment on insights acquired over 6 years of on-the-ground experience at 's pilot mini-grid (MG) project - operating in the Sidonge Community of Western Kenya - as a practical example of a business model striving to provide UBUA.

5 In addition, they will discuss the challenges facing a socially inclusive business model in the emerging energy sector of MGs, both from a technological and operations perspective. Lastly, they will explore why capital investment has been slow to mobilize for the sector and suggest ways to close the gap between financiers and MG developers. 09:00 - 09:30 How Can microgrids Be Profitable in Developing Countries? Lucie Klarsfeld McGrath Senior Project Manager Hystra bio What are today's financial sustainability benchmarks for clean energy microgrids in developing countries? What business models hold most promise for the future? Based on an in-depth analysis of 7 of today's most talked-about microgrid companies, Hystra will share key findings on the sector and recommendations on what is missing to help it scale.

6 09:30 - 10:00 From Microgrid To Local energy Communities Fr d ric Tounquet Senior Smart energy Systems Tractebel - Engie Group Significant cost reduction of distributed energy resources (DER) combined with new customer's expectations in energy sharing and peer-to-peer trading have paved the way to a new range of disruptive business models to realise a more decentralised energy system. In this presentation, the technical & economic feasibility of local energy communities (LECs) from a double perspective (prosumer perspective and DSO perspective) is investigated. On the one hand the economic opportunity for prosumers of joining a LEC will be assessed and, on the other hand, the impact that these LEC may induce to the distribution networks will be evaluated.

7 In this presentation, local energy communities are still connected to the main grid. However, they might go off the market, possibly inducing significant revenues losses for existing utilities. In order to assess this economic impact, several parameters as well as influencing factors must be taken into account, such as the regulatory framework, the technological assets (including their economical parameters) and the community design. The prosumers and their assets are forming a LEC at the distribution level, where power, heat and cold can be co-optimized, both in terms of sizing and dispatching to reach the lowest total expenditure costs over the studied time horizon.

8 Key takeaways: Decarbonising a community can be cheaper than working on an individual basis while creating social bounds at neighborhood level Community members and assets (electric vehicle, decentralised production, demand response) can work together to achieve greater efficiency at local level Regulation - especially distribution network tariff design - can create the right economic conditions for Local energy Communities to develop While going off grid is now technically feasible, going off market might be the bigger risk for utilities Return of experience show that (some) utilities have understood that risk and are developing new skills & services to accompany rather than fight this trend 10:00 - 10:30 Networking Coffee Break 10:30 - 11:00 Mini-grid Tenders: The GIZ Experience and Developments in Togo Florian Paffenholz Technical Advisor GIZ Togo bio Stefan Salow Junior Technical Advisor GIZ Togo bi This presentation provides an overview (scope and timeline) of on-going mini-grid tenders being implemented by GIZ programs in Africa (+6 countries including T, Kenya, Nigeria etc.)

9 The GIZ Togo mini-grid programme approach will be discussed, including policy support, tender + regulation, technical + subsidy financing support to developers, and demand stimulation through productive use. We will also look at current experiences and lessons learned from designing two mini-grid tenders in Uganda (up to 40 mini-grids) implemented by REA with support from GIZ. Key Take-Aways: Government involvement is key for rolling out mini-grid projects (projects ownership, mini-grids planning/prioritisation/political will, access to a high number of mini-grid sites, sustainable long-term operation) Projects require time (delays are common in countries where government actors are not familiar with process/approach & technology) and the regulation in countries is still untested (grid interconnection, termination compensations, tariffs, expansion, operation).

10 This makes it challenging to match donor funding usually characterised by shorter and stricter timelines 3 years. Technical assistance is still needed. Tender instruments (process, contracts, tender documents, feasibility studies) and regulatory structures need time and government actors' coordination to develop. Such processes are safer started as early as possible in projects. Interphase with companies during the tender process improves quality of bids and success of projects (interests of government and private sector can be matched) While private sector shows high interest in mini-grids (80 companies in Uganda's tender workshop), the quality of bids was relatively lower than expected - possibly due to too much work tenders required from companies, yet only 1 or 2 companies can win the project.