Powering the World with Clean Energy Reliable Renewables

Powering the World with Clean Energy Reliable Renewables: wind, solar and hybrid solutions Keys to Success for Deployment of Renewable Power on Islands IRENA Forum 2015 Martinique 22 -24 June 2015

Vergnet group: a history made in islands 25 YEARS’ experience on REMOTE and INSULAR areas 1992: first hybrid system 40 WIND & PV plants installed on islands worldwide 5 continents - 35 countries 4 subsidiaries of maintenance and local partners Subsidiaries • RE plants 2

Keys to Success for Deployment of Renewable Power on Islands Opportunities for Islands? Overview of successful RE developments Risk profile of renewable energy projects Is there an ideal RE investment scheme? Overcoming Islands challenges: Enabling environment Technical (case studies) Setting appropriate goals 3

Opportunities for Islands? 1 GEV MP-C Wind Turbine = 131 T of diesel fuel saved / year 100 k. Wp = 44 T of diesel fuel saved/year 4

Overview of successful RE developments (Wind & PV) Guadeloupe » FIT Nevis » PPA Vanuatu Kiribati » Utility » Grant > 21 MW wind 30% RE 2. 2 MW 3. 575 MW wind >30 % Average RE 1. 3 MWp PV Hybrid management National support High FIT attractive for small scale projects Private developper & investor Enabling environment (Gvt & Utility support) Utility decision, financing capability Step up approach (1+10+2 turbines) Quick deployment time Support from gvt/utility Preliminary studies financed 5

Risk profile of renewable energy projects Risk Level Project operation Technical » Energy resource assessment, site location, design, technology Commercial » Grid connection, offtake agreement Regulatory » Permitting, land acquisition » Actual site conditions, » Reliability of Equipment, suitability to Suitability of the Equipment local conditions (corrosion, cyclones…), to local conditions (Logistics) Local O&M competencies » EPC track record, Project management » Interest rates, labour costs » Regulatory change, interconnection » Regulatory change 6

Is there an ideal RE Investment scheme? Model Investment in Preliminary feasibility studies Land acquisition FIT /! PPA /! Utility /! or Grant /! or Project Funding Construction Operation /! Not a unique Scenario No fast track to success : » Enabling environment necessary » Cooperation between stakeholders » Ensuring sustainability of the project : importance of capacity building 7

Overcoming Islands challenges Necessity for an enabling environment Setting clear RE objectives » All stakeholders to go in the same direction § Roadmaps, RE target… § Cooperation between Utility, Public authorities, IPP … » Adapt regulatory framework and Utility’s business model to increase RE share (IPP, distributed generation) compatible with the country’s RE objectives Initiating small & medium-scale RE projects: » Many investors, few developers » Facilitating the feasibility and resource assessment studies is decisive to the success of smaller projects (IRENA, FASEP, Development banks support, country support…) 8

Overcoming Islands challenges Choosing the right technology for the right site (Logistics, weather conditions, consumption) 9

Overcoming Islands challenges Optimizing the design for the best ROI (Homer, Copex, etc. ) System design Diesel + PV (Existing) €/l Diesel fuel 0. 7 Capex COE (Cost of Electricity) in €/k. Wh 0 0. 24 0. 34 0. 45 Renewables share 1. 0 8. 2% 1. 34 Diesel + PV + Wind +500 k. W/560 k. Wh 0. 7 1. 0 0. 21 Capex 0. 26 54% Diesel + PV + Wind +1 MW/1 MWh 1. 34 0. 7 1. 0 1. 34 0. 31 Capex +10% 0. 17 0. 20 0. 23 77% 10

Overcoming Islands challenges Managing Intermittent energy and Variable load Efficient Hybrid control is the key 11

Overcoming Islands challenges Hybrid Wizard © controller: solution for islands Power instructions Samoa 550 k. W wind farm (running) All One measured or several power are Hybrid Wizardvalues © calculates in Most of the time, network analyzers transmitted are to distributed Hybrid on © real-time new power Wizard analyzers are linked with an the grid instructions optical network PV + inverter Kiribati 500 k. Wp PV plant (building) Voltage Frequency Current Flickers coef. Harmonics (%) Grid resilience Mauritania 4. 4 MW wind farm (running) 1. 3 MWp PV plant (building) Power instructions SCADA Network analyzer Gensets Grid Optical fiber LOADS Wind turbines + PLC 12

Case Study 1: Walking before running – Wind diesel on mining site Location Technology Installed Capacity Peak load Mauritania Hybrid wizard controller, no storage Wind: 4400 k. W Diesel: 4 x 4000 k. W 10 000 k. W 13

Case Study 1: Walking before Running – Wind diesel on mining site Actual average penetration of Renewables since June 2013 AVERAGE WIND SHARE: FUEL CONSUMPTION: 30% - 30% DIESEL SAVINGS: 4 800 T /year = 1 TURBINE PAID FOR EVERY 3 MONTHS 14

Case study 2: Ensuring Grid Stability - Hybrid PV system for remote island Location Hybrid Technology Installed Capacity Peak load Kiribati Hybrid Wizard controller PV: 1. 3 MWp (400 + 500 + 400 k. Wp) Diesel: 5. 45 MW 3500 k. W (Week) 15

Case study 2: Ensuring Grid Stability - Hybrid PV system for remote island POSSIBLE OVERCAPACITY OF PV PRODUCTION DURING WEEK-END Genset minimum setpoint: 30% Hybrid Wizard: Real time management of PV and Diesel power plants Fuel savings: 596 T / year 16

Case study 3: Selecting the proper approach- High penetration Wind. Diesel system for island Location Hybrid Technology Installed Capacity Caribbean Island Hybrid Wizard controler Wind: 1. 925 MW PV: 114 k. W Diesel: 1. 9 MW Battery for spinning reserve Peak load 1. 3 MW 17

Case study 3: Selecting the proper approach- High penetration Wind. Diesel system for island Option 2: Hybrid Wizard + Battery storage for spinning reserve Option 1: Hybrid Wizard without Battery storage 1. 37 MW WIND POWER 1. 92 MW NO BATTERY YES 40% AVERAGE RE SHARE 70% PEAK RE SHARE 90% 100% RE USAGE 100% 1 039 m 3/year DIESEL SAVINGS 1 418 m 3/year Capex > Budget Capex: - 35% vs Option 2 Wind Genset Wind PV PV Genset 18

Setting appropriate goals Grid Stability and power quality must drive the development of RE projects in islands » Consumption : minimum and maximum loads, grid parameters » Possibility of performing grid measurements, identify weak points, etc. Walk before running » Set reasonable targets for penetration rates and have a step by step approach (ex: 1 turbine + 10, 30% penetration before targetting 70%) § Grid stability : the project must be immediately a success » Project a flexible system, able to adapt to the grid evolutions § Possible evolutions of the consumption § Integration in the plans for development of the infrastructures of the territory Capitalize on the potential of variable energy for Islands » PV, Wind, low-medium penetration systems are on parity with diesel costs in most islands locations. » Intermittent (Wind & PV) = 2/3 of planned generation in the Caribbean » Quick deployment » Mature, scalable technology: Possibility to improve the system and targets : technology is evolving fast 19

Technology is ready Wind and PV bring significant savings with high quality & reliability Short payback time if good resource Thank you Istvan Ponsot – i. ponsot@vergnet. fr 20