Decentralized energy systems (DES) are being used more widely to provide rural electrification. Reasons for choosing DES include a lack of grid infrastructure, population growth in rural areas, and increasing reliance on renewable energy sources. DES can take various forms depending on factors like community size and terrain, including mini-grids, stand-alone home systems, and on-site generation projects. Successful case studies of DES include the 100% renewable energy system on Samsø Island, Denmark and the biomass plant in Güssing, Austria that has attracted new companies and jobs. The Foundation Rural Energy Services has implemented several solar PV mini-grid projects in Mali to provide electricity access to rural communities and businesses.

1. 11th OECD Rural Development Conference
Session Pillar 1.A: Key Drivers of rural change: Production and global transformations
10th April 2018
Decentralised energy systems (DES)
presented by
Stine Carlé
E.ON Off Grid Solutions
by

2. • Since summer 2017 Proud Partner of SEforALL (supporting SDG 7), ARE with its 150 Members is the only
global business association that represents the whole decentralised renewable energy sector for rural
electrification in developing and emerging countries.
• As the off-grid matchmaking and knowledge sharing hub ARE provides RET and sustainable business
solutions on the ground worldwide (focus: Productive Use of Renewable Energy (PURE)).
Commercial Partners
Knowledge & Support Partners
Alliance for Rural Electrification (ARE)
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3. Reasons for chosing DES
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On-site generation
projects
Commercial rooftop PV schemes
Emergency off-grid capable for
hours - days
Hospitals
Tier 3 & 4 data centres
Completely off grid
Military forward operating bases
Remote communities
Remote operations
Sites with both OSG & demand
management
Large I&C sites with CHP/gensets
(i.e. High exposure to peak system prices)
Community Energy Systems
Off Grid
Energy
Capacity
Stability
Grid Offset
Energy
Capacity
Stability
Cost Reduction
Energy
Capacity
Stability
Resilience
Energy
Capacity
Stability
Self-Supply
Optimisation
Energy
Capacity
Stability
Increasing Reliance on Grid Infrastructure
Island mode possible Island mode not possible

4. Drivers for DES
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Automony of
Citizens
Competitiveness
Replacement of
Diesel Generators
Increased Interest
of Financiers
Economic Growth
Renewable Energy
Cost Reductions
Telecommunications
Internet of Things
Regulations
1.1 billion
People Unelectrified
Population Growth
Energy Security
Developed Countries
Developing and Emerging
Countries
Climate Change
Mitigation
Growing Local
Communities

5. Developing and Emerging Countries
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Variety of solutions
Size/Density of Community/Complexity of Terrain/Economic Strengths
Grid Extension for large cities and industry
clusters
Mini-Grids for densely populated rural areas
occasionally integrated into the national grid
Stand Alone / Solar Home System for sparsely
populated areas
Decentralised approach to electrification

6. 6
Digital asset monitoringMini-grids
.01
Example Solution for DES - 1

7. Samsø Island, Denmark
Example Solution for DES - 2
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Güssing, Austria
• 100% renewable energy (pioneering biomass
plant; produce power by turning wood into a
clean gas instead of burning it)
• 50 new companies attracted
• 1000 new jobs; 100 in the energy sector
• Still no motorway or train lines connecting
• 11 MW onshore wind, 23 MW offshore wind,
4 District heating systems (straw, wood chips, solar)
• Owners: Private individuals, investor groups,
municipal government, local cooperatives
• Ecoturism destination
• Carbon footprint 2015: -12 tonnes/person/year
Credits: the Guardian, Energiakademiet
Credits: reNet Austria

8. Strategy & Business Development
E.ON Off Grid Solutions
stine.carle@eon-offgrid.com
+49 (0) 151 175 583 91
Marcus Wiemann
Executive Director
ARE
m.wiemann@ruralelec.org
+32 2 709 55 44
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Looking forward to meet you at the Intersolar Europe: Off-grid Power
Conference & Exhibition in Munich on 20th-22nd June 2018!
by
Stine Carlé

9. 9
Annex

10. • Decoupling of economic growth and energy consumption to continue (BP Energy Outlook 2018: global GDP
to double until 2040, but energy consumption to increase by only 35%).
• The energy mix will be more diversified than ever before, and renewables will be by far the fastest-
growing fuel source, increasing five-fold.
• However, the growth of renewables will still be too low to keep up with the additional energy demand which
will be driven higher by a third mainly by developing economies. While fossil and nuclear energies will
provide for 60% of the additional energy demand, renewables will only cover 40%.
• According to the IEA Energy Access Outlook 2017, 1.1 billion people remain without electricity in 2016,
84% of which live in rural areas. Efforts to promote electricity access are having a positive impact in all
regions, but progress remains slow as it is estimated that 674 million people will still not have access by
2030.
Global Market Outlook
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11. 1. Encourage cross-sectorial partnerships (e.g. microfinance)
2. Support governments in implementing clear policy frameworks for off-grid solutions
3. Mobilise more investment in education, research, development and capacity building
4. Empower women and youth as key change agents to achieve SE4All objectives
5. Develop innovative financing mixes and strong investment structures to de-risk investments in the off-
grid sector
6. Develop and promote matchmaking as well as knowledge sharing toolsB
Lessons learnt and recommendations from ARE Energy Access Investment Forum 2017
(Lisbon, 22-23 March 2017)
ARE key recommendations to scale up energy access
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12. Rural village hubs in Segou and Sikasso regions of
Mali
The Foundation Rural Energy Services (FRES) advances rural electrification in
developing countries. By setting up small-scale commercial electricity
companies in areas without a connection to the national electricity grid, FRES
offers households and small companies access to electricity preferably derived
from solar energy. Active in South Africa, Uganda, Mali, Burkina Faso and Guinea-
Bissau.
• High cost of electricity production (via individual generators) for SME’s,
limiting productivity and opportunities for business start-up and growth
• Limited grid infrastructure or electricity generation capacity / intermittent
supply
• Sharp increasing in diesel fuel price
THE COMPANY
THE CHALLENGE
FRES – Foundation Rural Energy Services (1)
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13. • Finance and commissioning of 8 solar PV power plants (50-150kWp) at rural
trading hubs in Mali + Mini-grid infrastructure at 8 villages (new grid
infrastructure and grid extension at other sites with existing (diesel) mini-grids
• Total installed capacity: 550kWp (combined total for 8 PV mini-grids)
• Actual production level: 1200MWh/year (combined total for 8 PV mini-grids)
• PV penetration ranges from 50 – 100% between the 8 mini-grids. System
configurations are largely PV/battery storage/ diesel genset
• Initial CAPEX financed by FRES, Nuon and AMADER (Malian Rural
Electrification Agency)/World Bank through grant financing
• Consumption based invoicing (€0.38/kWh) and pre-payment for customers
• Revenue finances ongoing operations and replacements
• Ongoing technical assistance and training for local technical staff from grid
network operator in the Netherlands
THE RENEWABLE ENERGY SOLUTION
PROJECT FINANCING & MANAGEMENT
FRES – Foundation Rural Energy Services (2)
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14. • 1160+ customers switched from diesel to PV hybrid mini-grids, i.e.
households and SME’s (e.g. tailors, bakeries, radio stations, banks, games
room, pharmacies, ICT services, water supply and commerce)
• Scale up of PV capacity to take place on 2016/2017 to support
growth in demand (approx. 10% annually) from new and existing
customers
OUTCOME AND NEXT STEPS
FRES – Foundation Rural Energy Services (3)
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