Madagascar: Experiences from decentralized supply of Rural areas with solar energy systems
Berlin, 5.7.2016
Summary
1. Motivation
2. Experience in Micro-Grids Madagscar 3. Past PV Experience Madagscar 4. Trends for Microgrids. 5. Challenges
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Finance / Refinance / Cost-effectiveness • Logistics • Installation • Maintenance 6. Wishes
1. Company Introduction As a system integrator we serve you from the first planning of a solar system up to the installation and maintenance. Our experienced consulting assures that we exactly meet your needs. Our systems identify the best suitable solution for your specific need. Besides wholesaling of components we deliver and install complete turn key solar and hybrid systems worldwide. Our project team has great work experience regarding the special markets in rural areas. Currently we are exporting in more than 35 countries in Africa and Asia and are supplier of numerous international NGOs. Asantys serves as a mediator between the markets. Component Producers Investors Strategic partners
2. Motivation Why micro grid power supply? Many people living in remote areas do not have access to the public electricity grid. Due to the high costs these people will hardly ever be able to enjoy electricity without the introduction of solar village power systems. A village power system forms a micro grid among a defined area without any connection to the public grid. This micro grid delivers three phase AC power to the different private houses, schools, clinics or businesses in the village. A centralized solar/hybrid power supply for village can offer immediate access to modern life for whole Madagascar with reliable power supply of urban areas as a condition for economic and social development. This is how we would like imagine the strategy to fight rural poverty, in our opinion small systems keep poverty alive as they do only offer small development possibilities.
3. Our Experience in Microgrids Asantys Team members realized more than 100 Mini-Grid projects in Africa and Asia Systems grow in size and project volume: Senegal (2008): Cameroun (2009): India (2010):
Bangladesh (2011): Mali (2012-2014):
Madagascar (2015):
1 Pilot System - 8 KWp 1 Pilot System - 10kWp 1 Pilot Systems - 10 KWp Consulting for 57 villages in Visakhapatnam, Andhra Pradesh, INDIA - 365kWp 1 Pilot System - 100 KWp (extension ongoing) 18 villages PV/Bat/Diesel Hybrid Power Supplies - Biggest village size - 150kWp PV - Total of - 1.5 MWp 2 Pilot projects with a total of 15 system: - GIZ : 8x Hybrid Energy Containers (75 kWp) - FONDEM: 7x PV/Bat-Systems (70kWp)
Pictures Pilot Project GIZ
Pictures Project BOREALE – NGO FONDEM
4. Past PV experience in Madagascar 1. Main PV market dominated by small SHS, PV Pumping systems, telecom
supply and some bigger private installations (tourism, villas,…) 2. Main market driver: NGO‘s • • •
Partial electrifications of selected areas Competition between NGO’s No integration into global strategy or other infrastructure projects •
Water, health, roads,…
3. No working finance structures for investments in PV besides small micro
credits for end-customers 4. Small PV-Market with a total of 20 supplying companies 5. “PV-Industry” no constant market – even the best companies have problems to survive • • •
Telecom YES Pico YES Bigger PV Systems DIFFICULT
5. Development of Minigrids Madagascar – Trends •
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Trend : Big centralized hybrid systems •
Request constantly growing
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Big advantage: Flexibility in application
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Concentrated village structure necessary
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New technical solutions come up without size restrictions
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New battery technologies open new scenarios
Trend : Pico Systems instead of SHS •
Asantys Experience from Project in Mali: With development of centralized systems and village power supply sales of SHS go down.
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SHS disappear from the market. Medium size systems from 1-3 kWp remain. First Solar-Kiosk projects in place.
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More efficient Pico Systems and battery rental complement village power systems; remote houses not connected due to high transmission cost.
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Sharing SHS in a DC-Grid is one option for existing SHS in dense areas. No adequate solution for nationwide and new electrification areas.
6. Remaining challenges (1) 1. Finance / Refinance
Main Problem is finance – technical solution ready • Initial planning & decision depend on many factors •
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Cost-effectiveness of the system affected by each factor. •
Grid extension prices 9.000 -13.000 € /km
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Diesel prices development
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Regulatory Framework / Custom advantages?
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High price difference between urban and rural
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No harmonized price per kWh • As long as price difference between rural and urban area will be maintained – no boom in rural electrification can happen
No functioning finance structure for rural electrification for private companies Solar powered Mini-Grid are very competitive, but each village, each system needs its own precise analysis combined with a specialized finance structure for solar industry of Madagascar
Grid extension vs. Solar Power Plant Example Mali 900.000,00 € 800.000,00 € 700.000,00 €
Costs [€]
600.000,00 €
500.000,00 € Solar power plant to 50kWp [Euro] Grid extension costs [Euro]
400.000,00 € 300.000,00 € 200.000,00 € 100.000,00 € - € 1
10
20 30 40 Distance to the grid [km]
50
60
Connected Consumer- Sandwip Island Bangladesh – 100kWp Hybrid system
First 300 connections – only business customers in order to develop commercial Activities Extension of system with growing demand after generation of income.
100 kW Solar Mini Grid, Enamnahar Market, Sandwip, Chittagong. (Cont…)
10000 9000
8000 7000 6000 5000 4000 3000 2000 1000 0
Energy Consumption (kWh)
Remaining challenges (2) 2. Logistics •
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Logistics in Madagascar are very difficult to manage Limited choice of forwarders / regularly delays for sea shipments • Ex. Offloading in Maurice Island • Harbour limits in South Madagascar Very bad roads / Goods need special packing / Very long transport time Transport prices often excessive No offloading / storage facilities on site • Asantys experience: up to 100t per village that need to be unload within 24h on site. Fork truck not available in the field / warehouse. • Theft alert • Good team on site is necessary for success During installation: Everything needs to be on site / difficult to organize missing items VERY difficult customs system.
Remaining challenges (3) 3. Installation
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Turnkey installation from external companies not the objectif •
too expensive and not local content / jobs
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only solution is supervision of local teams until know how transfer finished
Intense Training needs to be done before installation •
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Expl: A single screw can shut down the system
Different installation standards to be considered and discussed before work starts. • Bad quality installation tools / installation materials available locally.
Remaining challenges (3) 3. Installation
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Cultural differences may cause problems •
Understanding of time pressure (50kWp installation can take 3-4 weeks)
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14 MWp in project pipeline !
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Motivation of local team
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Organization of construction site
Availability of qualified installers •
Max: 10 companies with installations bigger than 10kWp PV
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Max: 20 qualified technicians nationwide
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Massive capacity building project is needed
C APACITY B UILDING F OF M ADAGASCAR • Asantys is partner of „The international Solar Employee/Entrepreneur“ Program of SRH Hochschule Berlin and PV-Projects Agency • 2. SRH Solar Winter School: January 30 - February 12, 2017 in Berlin • Innovative Vocational Training Program from Industry and Academia • Essential Business Know-how Transfer for Future Solar Employees and Entrepreneurs • Strong Practice-oriented Focus on the direct Development of Sales Channels and Economic Results • Export of Dual Vocational Education „Made in Germany“
E D U C AT I O N I S TH E K E Y !
Example Investement Cost Project South Madacascar •Supply hardware: •Installation cost:
45% 55%
Challenges (4) 4. Maintenance
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Crucial issue for long-term success / Lots of projects fail due no execution of maintenance. • Qualified team needs to stay in village to take care of solar power plants • Maintenance team therefore needs extra training • Basic skills (how to handle a computer) need to be trained also • Communication is not guaranteed, remote control not always available • Alternatives need to be organized if communication is not guaranteed, remote control not always available.
Challenges (4) 4. Maintenance
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Finance of maintenance needs to be calculated from the beginning • Uncontrolled load connections: more people will be connected than planned. Danger to the system when consumption grows unexpected without extending the system. •
TRAINING OF LOCAL TEAMS / CAPACITY BUILDING IS KEY ISSUE •
WITHOUT coordinated training program – no success story
Intense Training Project Boreale NGO FONDEM
7. Wishes and Visions from Asantys & Partners 1. Vision to electrify and develop Madagascar 2. Massive capacity building
3. Rural electrification to be combined with other infrastructure measures 4. Finance system for solar industry of Madagascar •
Operator credit from Government • Supply by tenders • Quality standards set • Operator has to be qualified and accredited by the minster of energy • Preference for productive sector • NO FREE PROJECTS MONEY as competition • “Out of Project Money” to be paid back to Government 5. FOR PV/Hybrid: Harmonized prices for kWh • „Fond de solidarité“ for rural electrification (with exit strategy)
Impressions (Mali)
Impressions (Bangladesh)
Impressions (Burkina Faso)
Impressions (DRC)
Impressions (Ivory Coast)
Project Layout of 100 kW Solar Mini Grid in Bangladesh
QUO VADIS MADAGASCAR ?
Contact: Asantys Systems GmbH
Nicolas Rohrer Hauptstraße 28 77756 Hausach Germany
[email protected] www.asantys.com
