This project is funded by the EU and implemented by a consortium led by MWH
EU Technical Assistance Facility (TAF)
for the Sustainable Energy for All (SE4All) Initiative
- Solar Corridor Support Programme -
Project funded by the European Union
EuropeAid/Development Cooperation Instrument
DCI-ENV/2013/335-152
This project is funded by the EU implemented by a consortium led by MWH
Objective, resources and implementation calendar
2
Objectives of the assignment:
– Analysis of the West Africa Solar Corridor and the required investments
under technical and economic considerations as part of the West Africa
Clean Energy Corridor (WACEC)
– Identification and specification of appropriate support measures
providing assistance to ECOWAS Member States in preparing and
implementing their solar electricity generation programmes with the
objective to speed-up the implementation process by removing barriers
and impediments.
Resources: In total 7 person-months
(energy planning, solar power systems, electricity networks, economics
and financing, institutional expert, GIS development)
Implementation calendar: Start: August 2016 / End: November 2016
EU Technical Assistance Facility (TAF)
for the Sustainable Energy for All (SE4All) Initiative - ENV/2013/335-152
This project is funded by the EU implemented by a consortium led by MWH
Regional coverage
ECOWAS countries will be covered by the project work:
– Review of relevant solar technologies and framework conditions
– Solar zoning exercise
– Strategy and support programme
Solar corridor countries (Sahel / tropical region of Western
Africa with high potential for grid-connected solar power
plants):
– Regional strategy relevant grid-connected capacities
– Planning, implementation and back-up requirements
– Cost assessment and financing considerations
– Strategy and support programme
– Integration into the West African Clean Energy Corridor (WACEC):
Solar, hydro, wind, biomass
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This project is funded by the EU implemented by a consortium led by MWH
Scope of work: Part 1 – Solar corridor analysis and
accompanying technical and economic considerations
4
Solar electricity generation targets (AA)
Ongoing project development – implementation - operation
Scope of work of a “West Africa Solar Masterplan”
Solar technology mix
Assessment of technical and economic potential (GIS Zoning)
Reserve capacity requirements – management of intermittencies
Network development
Cost-estimate
Economic and financial considerations
Legal and institutional requirements
EU Technical Assistance Facility (TAF)
for the Sustainable Energy for All (SE4All) Initiative - ENV/2013/335-152
This project is funded by the EU implemented by a consortium led by MWH
Scope of work: Part 2 – West Africa Solar
Corridor Support Programme
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Implementation strategy for the corridor support programme – West African Clean Energy Corridors (WACEC): Solar, hydro, wind, biomass
– National Governments
– ECOWAS and specialized agencies
– International technical and financial cooperation
Guiding principles for the support programme
Corridor support programme components – GIS Zoning
– Planning and technical analyses
– Enabling environment
– Financing
– Capacity building
Integration into future cooperation initiatives (such as EU RIP)
…
EU Technical Assistance Facility (TAF)
for the Sustainable Energy for All (SE4All) Initiative - ENV/2013/335-152
This project is funded by the EU implemented by a consortium led by MWH
Presentation of work in progress
6
Solar technologies
GIS development and zoning
Electricity planning – Case study Ghana
– Generation and reserve requirements
Economic and financial considerations
Enabling environment of investments in Solar PV/CSP
– Areas for Harmonization -
EU Technical Assistance Facility (TAF)
for the Sustainable Energy for All (SE4All) Initiative - ENV/2013/335-152
This project is funded by the EU implemented by a consortium led by MWH
Solar technologies
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Large-scale solar generation projects (PV and CSP) of regional
importance in the range from 20 to150 MW of special interest
for WAPP embedded in the transmission grids at voltage levels
above 50 kV
Decentralized solar generation projects integrated in the
distribution grids below 50 kV (only for PV below 10 MWp)
Stand-alone and non-interconnected systems such as: – Mini-grids for communities >30 km away from the grid
– Stand-alone systems for settlements with population density below 100 people
– Small solar home systems and solar powered appliances for dispersed people
EU Technical Assistance Facility (TAF)
for the Sustainable Energy for All (SE4All) Initiative - ENV/2013/335-152
This project is funded by the EU implemented by a consortium led by MWH
GIS development and zoning (1)
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Goal: to provide ECREEE with a set of tools, data and
maps as a support to the evaluation of potentialities for
development of RE in ECOWAS countries
Development of tools for GIS data processing:
– Exclusion areas
– Land suitability for PV on-grid, PV off-grid and CSP systems
– Technical Potential
– Computation of LCOE
The tools will allow to re-compute each map based on
different sets of exclusion criteria, thresholds, assumptions
and unit costs
EU Technical Assistance Facility (TAF)
for the Sustainable Energy for All (SE4All) Initiative - ENV/2013/335-152
This project is funded by the EU implemented by a consortium led by MWH
GIS development and zoning (2)
9
Methodologies based on previous works carried out by
IRENA and by University of Geneva
All tools are going to be developed using open source
software
Set up of scenarios for different time horizons (2016, 2020
and 2030)
EU Technical Assistance Facility (TAF)
for the Sustainable Energy for All (SE4All) Initiative - ENV/2013/335-152
This project is funded by the EU implemented by a consortium led by MWH
10
EU Technical Assistance Facility (TAF)
for the Sustainable Energy for All (SE4All) Initiative - ENV/2013/335-152
This project is funded by the EU implemented by a consortium led by MWH
11
EU Technical Assistance Facility (TAF)
for the Sustainable Energy for All (SE4All) Initiative - ENV/2013/335-152
This project is funded by the EU implemented by a consortium led by MWH
12
EU Technical Assistance Facility (TAF)
for the Sustainable Energy for All (SE4All) Initiative - ENV/2013/335-152
This project is funded by the EU implemented by a consortium led by MWH
13
EU Technical Assistance Facility (TAF)
for the Sustainable Energy for All (SE4All) Initiative - ENV/2013/335-152
This project is funded by the EU implemented by a consortium led by MWH
14
EU Technical Assistance Facility (TAF)
for the Sustainable Energy for All (SE4All) Initiative - ENV/2013/335-152
This project is funded by the EU implemented by a consortium led by MWH
Energy planning – Case study Ghana (1)
15
Indicative work for Ghana is presented here and it is based on :
WAPP masterplan extended to 2030(WAPP-IRENA study)-
results for Ghana regarding electricity demand up to 2030, peak
load demand up to 2030
Solar energy penetration up to 2020 based on National
Renewable Energy Action Plan
Renewable Energy Master Plan for Ghana (in progress), Energy
Commission, for the period 2020-2030
EU Technical Assistance Facility (TAF)
for the Sustainable Energy for All (SE4All) Initiative - ENV/2013/335-152
This project is funded by the EU implemented by a consortium led by MWH
Energy planning – Case study Ghana (2)
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The approach followed :
WAPP masterplan extended to 2030 is considered for electricity demand
and peak load demand
The masterplan is corrected by replacing conventional plants with the solar
plants foreseen in the National Renewable Energy Plans up to 2030
An aggregated assessment of the roadmap of the power system generation
technologies up to 2030 is derived including Ghana’s indicative contribution
for the solar corridor
Load following reserve is estimated for the year 2030 together with storage
requirements
EU Technical Assistance Facility (TAF)
for the Sustainable Energy for All (SE4All) Initiative - ENV/2013/335-152
This project is funded by the EU implemented by a consortium led by MWH
Energy planning – Case study Ghana (3)
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Presentation of indicative results for the assessment of solar
systems penetration by 2030 :
Generation Mix including solar plants
EU Technical Assistance Facility (TAF)
for the Sustainable Energy for All (SE4All) Initiative - ENV/2013/335-152
This project is funded by the EU implemented by a consortium led by MWH
18
EU Technical Assistance Facility (TAF)
for the Sustainable Energy for All (SE4All) Initiative - ENV/2013/335-152
Ghana
Reference scenario Reference scenario + solar corridor
Grid connected Capacity 2015 2020 2025 2030 2015 2020 2025 2030
Biomass 0 0 793 1000 0 0 793 1000
Coal 0 0 0 0 0 0 0 0
Gas 1687 1687 1687 2832 1686 1686 1686 2724
Hydro 1386 1386 1386 1386 1386 1386 1386 1386
Oil 385 385 85 85 385 385 85 85
PV 10 10 10 10 17 200 345 500
Wind 150 150 150 150 150 150 150 150
Solar Thermal 0 0 0 0 0 0 0 0
This project is funded by the EU implemented by a consortium led by MWH
19
EU Technical Assistance Facility (TAF)
for the Sustainable Energy for All (SE4All) Initiative - ENV/2013/335-152
Ghana
Reference scenario Reference scenario + solar corridor
Grid electricity Production 2015 2020 2025 2030 2015 2020 2025 2030
Biomass 0 0 3478 4383 0 0 3478 4383
Coal 0 0 0 0 0 0 0 0
Gas 12725 10482 10509 16120 12719 10175 9963 15318
Hydro 3720 3720 3720 3720 3720 3720 3720 3720
Oil 0 0 0 0 0 0 0 0
PV 22 22 22 22 28 329 568 823
Wind 329 329 329 329 329 329 329 329
Solar Thermal 0 0 0 0 0 0 0 0
Net Electricity Imports -2565 4027 6439 8057 -2565 4027 6439 8057
System Peak 2523 3030 3893 5153 2523 3030 3893 5153
2015 2020 2025 2030 2015 2020 2025 2030
Final Electricity Demand 12025 16473 21952 29519 12025 16473 21952 29519
Net Imports of electricity -2565 4027 6439 8057 -2565 4027 6439 8057
This project is funded by the EU implemented by a consortium led by MWH
Energy planning – Case study Ghana (4)
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Presentation of indicative results for the assessment of
intermittencies due to solar systems penetration by 2030:
1. Indicative requirements for fast reserve for load balancing
2. Indicative storage reserve requirements to avoid curtailment
EU Technical Assistance Facility (TAF)
for the Sustainable Energy for All (SE4All) Initiative - ENV/2013/335-152
This project is funded by the EU implemented by a consortium led by MWH
Energy planning – Case study Ghana (5)
21
EU Technical Assistance Facility (TAF)
for the Sustainable Energy for All (SE4All) Initiative - ENV/2013/335-152
Indicative hourly reserve requirements for Ghana for the year 2030
Reserve Requirments 2030
-1000
-800
-600
-400
-200
0
200
400
600
800
1000
1 1001 2001 3001 4001 5001 6001 7001 8001
Time (hr)
Re
se
rve
(M
W)
Upward
Downward
This project is funded by the EU implemented by a consortium led by MWH
Energy planning – Case study Ghana (6)
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storage reserve required is derived from the residual load curves and the thermal minimum of thermal plants
EU Technical Assistance Facility (TAF)
for the Sustainable Energy for All (SE4All) Initiative - ENV/2013/335-152
Monthly residual load curves of electricity demand in Ghana after excluding PV
generation(convolution of PV generation curves) and imports for the year 2030
Residual Load (No Imports Inc) 2030
-500
0
500
1000
1500
2000
2500
3000
0 100 200 300 400 500 600 700 800
Time (hr)
Lo
ad
(M
W)
January
March
June
September
This project is funded by the EU implemented by a consortium led by MWH
Energy planning – Case study Ghana (7)
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Overall planning approach :
Areas derived from the zoning work have low LCOEs and they are close to
Load centres to minimize the grid construction costs
Areas chosen from the zoning work correspond to the generation capacity
included in the generation roadmap derived from the combination of the
WAPP masterplan with the solar penetration of the NREAPs
Evaluation of the needs for reserves for balancing and storage will be
performed
Evaluation of the existing grid expansion programme to assess whether or
not the power flows that correspond to the solar corridor can be transmitted
by the foreseen grid will be performed
EU Technical Assistance Facility (TAF)
for the Sustainable Energy for All (SE4All) Initiative - ENV/2013/335-152
This project is funded by the EU implemented by a consortium led by MWH
Economic and financial considerations (1)
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Economic and financial approach is based on the following
issues:
– Specific inputs:
• Installed capacity for each country (MWp/country)
• Investment schedule for each country – CAPEX (Eur/year/country)
• Annual energy production per country (MWh/year/country)
• Annual full operational hours (specific for each country or site)
• Capacity factor (estimated as number of full operational hours/8760)
• Discounting rate: 10%
• Electricity own consumption (MWh/year/country)
• Current price of electricity per each country (Eur/MWh)
• CPI (Cost Price Index) for Solar corridor countries
EU Technical Assistance Facility (TAF)
for the Sustainable Energy for All (SE4All) Initiative - ENV/2013/335-152
This project is funded by the EU implemented by a consortium led by MWH
Economic and financial considerations (2)
25
Economic and financial approach (cont.)
– All calculations will be performed in Eur, without VAT
– Operational Costs estimation – OPEX – general assumptions:
• Operating costs incl. salaries: 10-18 Eur/KWp
• Energy own consumption (Eur/year)
• Insurance premium: 0.3% of the investment value
• Spare parts: 0.25% of the investment value
• Land lease: 0.0 Eur/year
• Commercial management: 1.0 Eur/kWp
• Administrative expenses: 3% of operating costs
– Linear constant depreciation (20 years lifetime)
– Financial costs – depending on the financial scheme
EU Technical Assistance Facility (TAF)
for the Sustainable Energy for All (SE4All) Initiative - ENV/2013/335-152
This project is funded by the EU implemented by a consortium led by MWH
Economic and financial considerations (3)
26
Economic and financial approach (cont.)
– Estimation of the optimal funding scheme
• Equity
• Subsidies
• Grants
• Loans from different sources (commercial banks, WB, EIB, AfDB etc)
– Minim ROE = 15%; Minim DSCR = 1.1
– Estimation of unitary cost (Eur/MWh) per country
– Estimation and comparison of LCOE (related to each country)
Financial risk assessment
– Risk matrix and Risk Control Plan
EU Technical Assistance Facility (TAF)
for the Sustainable Energy for All (SE4All) Initiative - ENV/2013/335-152
This project is funded by the EU implemented by a consortium led by MWH
Enabling environment of investments in
Solar PV/CSP – Areas for Harmonization -
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Policy, planning and legislation • Policy and Panning
• Legal and Regulatory Framework
• State Support
Licensing and procurement procedure • IPP and PPP Frameworks
• Procurement Procedure
• Licenses and Permits Regime
• Tariffs Methodology
Technical standards • Equipment Manufacture/Import
• Codes
Model contracts • PPAs
• Connection Agreements
• Transmission Service Agreements
Dispute resolution • Internal Dispute Procedure
• Appeals Process
EU Technical Assistance Facility (TAF)
for the Sustainable Energy for All (SE4All) Initiative - ENV/2013/335-152
This project is funded by the EU implemented by a consortium led by MWH
Many thanks for your attention!
Martin Ehrlich
EU TAF Key-expert ([email protected])