Fiji: Distributed Generation and Energy Storage Makereta Sauturaga

Director, Fiji Department of Energy

Luis A. Vega, Ph.D.

PICHTR

Table of Contents • Fiji Background • Energy Consumption • Electricity & Energy Storage National Grid (c/o Fiji Electricity Authority) Distributed: Rural Sector (c/o Department of Energy) • Future: Grid Connected Renewable Energy Systems H 2 Fuel Cells Wind/PV Hybrid and Solar Home Systems (SHSs) Energy Service Companies for SHSs 2

Fiji Background

3

4

Fiji

• Population (‘02): • GDP/Capita (‘02):

Power-Purchase-Parity:

826,300 F$ 4,200

F$ 9,900

• Annual Inflation (‘00-’03): 1.5 to 3 % • National Tariff (F$/kWh): [1 F$  0.5 US$] 0.206

5

Energy Consumption

Pacific Islands annual per capita energy consumption (‘90) Fiji  1,030 kgoe (43 MJ) Fiji Percentage Energy Consumption by Source (’90-’00): Biomass, Petroleum, Hydro Biomass Sources 6

1200 Palau Fiji 1000 800 Samoa 600 400 Marshall Is.

Tuvalu Vanuatu FSM Tonga Solomon Is.

PNG Kiribati 200 Cook Is.

0 $0 $1,000 $2,000 $3,000 $4,000 $5,000

PPP

$6,000 $7,000 $8,000 $9,000 $10,000 7

60.0% 50.0% 40.0% 30.0% 20.0% 10.0%

Percentage Energy Consumption by Source

Fossil Fuels Biomass Hydro Equivalent 0.0% 1990 1991 1992 1993 1994 1995 1996

Year

1997 1998 1999 2000 2001 2002 8

Biomass Energy (2001)

• Bagasse • Household Fuelwood 42% 39% • Agro/Industrial Fuelwood 9% • Coconut Husks 10% 9

Electricity & Energy Storage

• Fiji Electricity Authority (FEA) National Grid – Hydropower; Diesel; Bagasse.

• Fiji Department of Energy (FDoE) Distributed: Rural Sector – Diesel; Microhydro; Wind/PV Hybrid; PV-lighting (Solar Home Systems).

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FEA National Grid

• Five separate grids: 675 GWh/year - Viti Levu Interconnected System (VLIS) & Rakiraki: 93% - Ovalau: 1.5% - Labasa (Vanua Levu): 4.5% - Savusavu (Vanau Levu): 1% • Storage: Monasavu Dam/ Wailoa Hydropower (80 MW) 11

Monasavu Dam Storage

• Nadrau Plateau  900 m ASL • Nominal Depth  80 m (x 670 Ha) • Catchment Area  110 km 2 • 11 kV  132 kV 140 km transmission to Suva 12

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National Grid Electricity Production

700 600 500 400 300 200 100 0 1990 1991 1992 1993 1994 1995 1996

Year

1997 1998 1999 2000 2001 2002 2003 14

National Grid Electricity Production

40% 30% 20% 10% 0% 100% 90% 80% 70% 60% 50% Hydro IPP FSC Diesel FEA 1990 1991 1992 1993 1994 1995 1996

Year

1997 1998 1999 2000 2001 2002 2003 15

Business-as-Usual Growth Scenarios

1600 GWh 1400 GWh 1200 GWh 1000 GWh 800 GWh 600 GWh 400 GWh 200 GWh FEA High Growth 2003 Growth Hydro & FSC 0 GWh 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 16

Distributed Generation

(FDoE) • 470 microgrid Diesel (  15 kW): 4 hrs/day, 50 houses/village, 5 people/house 3.4 GWh/year (  0.5 % FEA) • 5 Provincial Centers minigrid diesel: 12 to 24 hrs/day 1 GWh/year • 5 run-of-river Microhydro (< 100 kW) 4 hrs/day 0.4 GWh/day 17

Distributed Generation

(FDoE) • Nabouwalu Wind/PV Hybrid 0.15 GWh/year • 490 Solar Home System (SHS) Units 0.04 GWh/year [SHS Potential: 1 GWh/year] • Storage: Chemical (lead acid batteries) 18

Cost of Delivered Electricity 2.00 US$/kWh 1.75 US$/kWh 1.50 US$/kWh 1.25 US$/kWh 1.00 US$/kWh 0.75 US$/kWh 0.50 US$/kWh 0.25 US$/kWh 0.00 US$/kWh Grid Tariff Suva (FEA) Ovalau (FEA) Vanua Levu (FEA) Provincial Center Diesel Scheme SHS-1 SHS-2

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Future

• Grid Connected Renewable Energy Systems • H 2 Fuel Cells • Wind/PV Hybrid and Solar Home Systems (SHSs) • Energy Service Companies for SHSs 20

Feasibility of Grid-Connected Renewable Energy Systems

• Estimate cost-of-electricity (COE) production with different technologies (excluding transmission)

National Tariff: 10 US-cents/kWh Avoided Cost: 6.5 US-cents/kWh

[1 F$  0.5 US$] 21

Cost of Electricity Production

COE ($/kWh) = CC + OMR&R + Fuel + Profit - Environmental Credit

CC = Capital Cost Amortization OMR&R = Operations + Maintenance + Repair + Replacement

Tariff = COE - Subsidy

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Grid Technologies • Well-Established: Wind Farms, PV Arrays, Biomass as fuel in Thermal Plant, Hydroelectric, Geothermal • Future: Ocean Thermal Energy Conversion (OTEC) and Wave Power • CC  Installed Capital Cost 23

COE with 5 to 20 MW Wind Farms • CC: US$1140/kW • Annual-Average-Wind-Speed of 9 m/s corresponds to Capacity Factor (CF) of 43% • Annual-Average-Wind-Speed of 7 m/s corresponds to CF of 25% 24

TECHNOLOGY COE N (years)/I (%) CF (%)

Wind

4.4 3.6 3.3 2.4

15/10 30/10 15/5 30/5 43 “ “ “

7.6 6.3 5.7 4.2

15/10 30/10 15/5 30/5 25 “ “ “ 25

COE with 1 MW PV Array • CC: US$6500/kW [PV panels with Inverter] • Use Annual-Average-Daily-Insolation around Nadi Airport corresponding to Capacity Factor (CF) of 21% 26

TECHNOLOGY COE N (years)/I (%) CF (%)

PV Arrays

46.5 37.5 34.0 23.0

15/10 30/10 15/5 30/5 21 “ “ “ 27

COE with 50 MW Thermal Plant using Biomass as Fuel • CC: US$2000/kW using biomass with heat value of 12,000 Btu/kWh at 2 US$/MBtu • Seasonal operation results in 50 % capacity factor. 28

TECHNOLOGY

Biomass for Thermal Plant

COE N (years)/I (%) CF (%) 8.9 7.7 7.3 5.9

15/10 30/10 15/5 30/5 50 “ “ “ 29

COE with 100 MW Grid-Connected Hydroelectric Plant • CC : US$2000/kW. A conservative capacity factor of 45 % is assumed with operation and maintenance cost at 0.5 cents/kWh • The COE is highly dependent on site characteristics • Land Issue a tremendous challenge 30

TECHNOLOGY

Hydroelectric

COE N (years)/I (%) CF (%) 5.9 3.8

30/10 30/5 45 “

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COE with 5 to 50 MW Geothermal Plants

• To produce electricity the geothermal resource must be about 250  C • Presently in California and Hawaii COE: 4 to 8 US-cents/kWh 32

COE with 100 MW OTEC Plant • Extrapolation from small experimental plant operations in Hawaii by PICHTR • CC: US$4500/kW; CC is highly dependent on plant size, do not use this value for smaller plants • Temperature difference plantship moored   22  C and 10 km offshore 33

TECHNOLOGY COE N (years)/I (%) CF (%)

OTEC

8.8 7.3 6.7 4.8

15/10 30/10 15/5 30/5 85 “ “ “ 34

COE with 1 MW Wave Power Plant • Projected estimates from Norwegian land-based experimental plants • CC: US$4000/kW • Average incident wave power of 35 kW/m at shoreline and relatively high capacity factor of 60% 35

TECHNOLOGY

Land-Based Wave Power

COE N (years)/I (%) CF (%) 11.1 9.2 8.4 6.1

15/10 30/10 15/5 30/5 60 “ “ “ 36

H

2

: Fiji Perspective

• Available from hydrocarbons and water • H 2 is energy carrier not energy source • Energy transport by electrons much more efficient that H 2 energy transport • Future viability as energy storage alternative to batteries (village power)?

H

2

from hydrocarbons

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39

H

2

from Water

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Hydrogen from Electrolysis

• 75% of Electrical Energy lost through Electrolyzer/Fuel Cell • Would need 4 WTGs to meet electrical load instead of 1 WTG • Energy Storage (electrical  chemical  Lead Acid Battery   Electrolyzer/Fuel Cell   electrical) 75% 25% 42

Fuel Cells Conclusions

• What is your source of H 2 ?

• Why use fossil-fuel to produce H 2 to generate electricity?

• Why use electricity to generate H 2 (electrolysis) to produce 43

FEA Future

• Develop Wind-Farms, Hydroelectric, Biomass or Geothermal Systems if appropriate resource available • PV Cost must decrease by > 50% before grid-connected systems are cost competitive • OTEC and Wave Power systems are promising 44

FEA Challenge:

Conservation and Renewables • Demand side management conservation measures (FEA and FDoE) • FEA in process of identifying a site for a 10 MW Wind Farm (grid-connected) • Resolution of Hydroelectric-Dam Land Issues 45

Distributed Generation & Energy Storage Future

c/o FDoE (with PICHTR as advisor)

• Implementation of 1000’s of stand alone SHSs and 100’s PV-Hybrids for non-FEA areas 46

FDoE Funding Challenge US$ 17 Million required for the installation of  12,000 SHSs:

where can the Fijian Government obtain this amount and in the form of concessionary loans with terms that result in monthly service fees of about F$20 (~ US$10)?

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Renewable-Energy-Based-Rural Electrification (RERE)

• Locations where FEA grid extension not cost effective – Remote villages using benzene lamps, dry-cell batteries ($5 to $20/month) …

[PV Lights?]

– Provincial centers with genset mini grid (COE > 0.5 $/kWh)…

[ Hybrids?]

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FDoE RERE Goals

• Implement Commercially Viable Energy Services for Sustainable Development • Commercial viability

collectable



service is provided for a fee that covers all life-cycle costs; and, fee is

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Demonstration Projects with PICHTR

• Nabouwalu (Fiji) 720 kWh/day Wind/PV Hybrid Power System • Vanua Levu(Fiji) 250 Solar Home Systems • Technical Training: Energy Specialists; PV and Wind Technicians 50

Nabouwalu Hybrid System

• 720 kWh/day Wind/PV Hybrid System at Provincial Center (24/7) – 60% from renewable energy (1998) down to 15% by 2002 (human infrastructure issue) – Tariff ~ 1/5 C.O.E. disregards RE Policy 51

Nabouwalu, Fiji Power House 1 of 8 WTGs Transformer 40 kW PV 52

Nabouwalu, Fiji Step-up Transformer Gensets Controls Battery PV 53

Nabouwalu Post Office: Pre-payment Cards 54

Solar Home Systems (SHSs)

• Entry level in Fiji: – 200 Wh/day (evening hours):  100 Wp of PV panels   100 Ah, 12 V deep cycle battery charge controller  pre-payment meter 55

Vunivau, Fiji Rice Farmers Nabouwalu, 1-hr Labasa, 2-hrs

Vunivau, Fiji

Renewable Energy Service Companies for Solar Home Systems

SHS Conclusions • Actual field experience operating 250 SHSs in Vanua Levu were used to establish requirements {systems are maintained by a private company operating as a RESCO under contract to determine the true cost of system operation as well as appropriate staffing requirements} 59

SHS Conclusions (continuation) • SHS Commercial viability provided for a fee that covers all life-cycle costs associated with providing that service and fee is collectable  service 60

SHS Conclusions: Financial Feasibility Financing of SHSs feasible at least under two scenarios: (1) Concessionary loan (e.g., Government of Japan) with tariff covering all costs (2) Fiji Government: 90% capital subsidy; balance through commercial loan and recurring cost covered by tariff {2nd scenario allows about 300 installations yearly but 12,000 potential users} 61

Village Surveys • 38% of the households fuels used for lights and dry cell batteries for radios  F$20/month in • Extrapolation to all Rural-Electrification applicants indicates that households could afford F$20/month. And  7500 more could use SHS for lower fee ________  4500 F$20 = US$10 62

Monthly Expenditures ($F): Kerosene and Benzine for Lights and Radio Batteries [432 Households in 47 Villages (Viti Levu and Vanua Levu)]

20% 19% 18% 17% 16% 15% 14% 13% 12% 11% 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% 3.7

Average: $F 18.6

Maximum: $F 69.6

Minimum: $F 1.2

38% Expenditures > $F 20

7.5

12.5

17.3

22.1

27.4

32.0

37.1

42.3

46.5

Average Expenditures in $5 Range Increments

52.6

57.7

62.9

69.0

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Funding Challenge US$ 17 Million required for the installation of  12,000 SHSs:

where can the Fijian Government obtain this amount and in the form of concessionary loans with terms that result in monthly service fees of about F$20 (~ US$10)?

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APEC Economies: Opportunities

• Minimal rural infrastructure in Fiji  opportunities for new renewable/storage energy technologies • Fiji Department of Energy and PICHTR provide a working partnership 65