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Optimizing Clean Power Everywhere
1790 30th St, Suite 100, Boulder, Colorado 80301, USA
http://www.homerenergy.com ● +1-720-565-4046
Rural Electrification
Models and Costs
Dr. Peter Lilienthal
peter@homerenergy.com
Too Many Choices
Hydro
Geothermal
Demand
Response
Smart grids
Micro-grids
http://www.homerenergy.com
What is best?
• Depends on the application
–Resources
–Loads
–Equipment prices
–Equipment performance
• A confused mind says “No!”
• HOMER fits the pieces together
http://www.homerenergy.com
Modeling Challenge
• Solar and wind are variable
– Chronology is important
– Needs integration with dispatchable resources
• Smaller projects need simpler tools
http://www.homerenergy.com
HOMER
• Industry standard for hybrid micro-grids
– Conventional resources
– Renewable resources
– Storage
– Load Management
http://www.homerenergy.com
HOMER
• NREL: 1992-2009
• Original developers now at HOMER Energy
• 122,000+ users in 193 countries
0
200
400
600
800
1,000
1,200
20102009200820072006200520042003200220012000
New users per month
http://www.homerenergy.com
HOMER Analysis Layers
• Simulation
– Accurate analysis of time varying
loads and resources require an hour-
by-hour analysis for entire year
• Optimization
– Find the least cost solution
• Sensitivity Analysis
– The data is never “good enough”.
– What if….?
Simulation
Optimization
Sensitivity Analysis
Energy Balance
http://www.homerenergy.com
HOMER bridges different worlds
Renewable Advocates
Utility Operators
HOMER
Model
Power
Engineers
Financiers
HOMER as a communication tool
http://www.homerenergy.com
Flexible Data Requirements
• Rough estimated inputs for general
analysis
– Annual averages for resources and loads
– Cost per kW or unit for equipment
• Detailed inputs for system design
– Measured hourly data
– Detailed cost curves
– Create your own wind turbine, battery, fuels
http://www.homerenergy.com
Answers from HOMER
• Optimal System Design
• Cost Breakdowns and Comparisons
• Resource Analysis
• Technology Development Targets
• Policy Analysis
• Operational Analysis
http://www.homerenergy.com
Policy Analysis
• Cost of emission constraints
0 5,000 10,000 15,000
0.0
0.2
0.4
0.6
0.8
1.0
1.2
LevelizedCostofEnergy($/kWh)
Levelized Cost of Energy vs. Max. CO2 Emissions
Max. CO2 Emissions (kg/yr)
http://www.homerenergy.com
Operational Analysis
• When is backup power needed?
Jul 10 Jul 11
-5
0
5
Power(kW)
AC Primary Load
PV Pow er
Diesel Pow er
Battery Pow er
http://www.homerenergy.com
Rural Electrification Models and Costs
• Individual Systems
– Solar Lanterns
– Solar Home Systems
– Renewable Power for Micro-enterprise
• Microgrids
– Part-time diesels
– Small 100% renewable systems
– Fully integrated hybrid systems
http://www.homerenergy.com
Paths to Full Electrification
http://www.homerenergy.com
Kerosene & Batteries
Individual solar
systems
Part-time diesels
Fully integrated
hybrids
Part-time Diesels
• Low capital cost
– Popular with funders
• High fuel costs
– Questionable sustainability
• Poor part-load efficiency
– Without batteries, only supply evening power
– Little economic development potential
• Little incentive for energy efficiency
http://www.homerenergy.com
Individual Solar Systems
• Simple, typically DC
• Have become inexpensive
• Can provide 24 hour power
• Without backup genset
– Only supply limited quantities
– Battery management is the challenge
• Temptation to over-discharge
• Difficult to equalize battery cells
http://www.homerenergy.com
Fully integrated Hybrids
• 24 hour AC power
– Often better than the central grid
• Batteries for off-peak loads
• Diesel for peak loads
• Solar to minimize diesel usage
• Basically a mini-utility
– Metering, tariff collection, admin. challenges
– Pre-pay meters
http://www.homerenergy.com
When is grid extension better?
http://www.homerenergy.com
Hybrid Design Tradeoff
More Diesel
More Storage
Solar Home
Systems
Multi-megawatt
scale systems
Small Systems Large Systems
High Penetration Low – Med. Penetration
http://www.homerenergy.com
Size Makes a Difference
• Battery based systems
– < 1 kW, no backup genset
– 1-100 kW, single genset, infrequently used
• Diesel based systems: > 100 kW
– Multiple gensets should be optimized
– Role of batteries evolving rapidly
• Stabilization
• Spinning reserve
• Diesel off during off-peak hours
http://www.homerenergy.com
For small systems, PV is cost-effective, almost everywhere.
http://www.homerenergy.com
PV is cost-effective
Not cost-effective
Community Systems with Optimized Diesel
http://www.homerenergy.com
PV is cost-effective
Not cost-effective
HOMER’s Economic Outputs
http://www.homerenergy.com
Community System in Southern Africa
Diesel grid parity
$0,00
$0,10
$0,20
$0,30
$0,40
$0,50
2001 2004 2007 2010 2013
CostofPower($/kWh)
PV Diesel
http://www.homerenergy.com
Different Definitions of Penetration
• Instantaneous
Penetration
– High winds in the middle
of the night
– Most useful measure for
integration analysis
• Factor of five difference
from energy metric
From: High Penetrations of Renewable Energy for Island Grids in Lilienthal, Power Engineering, November, 2007
http://www.homerenergy.com
Levels of renewable regimes
• More renewables requires:
• More intelligent controls
• Storage, electric or thermal
• Load management
Low No Special Controls
Medium Control excess renewables
High Re-dispatch diesels
Very high Operate diesel off
St. Paul, Alaska
http://www.homerenergy.com
Penetration Analysis from HOMER
http://www.homerenergy.com
Lessons from the Remote Market
• What to do when the wind blows too strongly
– Secondary loads
• What to do when it stops too abruptly
– Load management as “spinning” reserve
• What to do with storage
– Not just for load shifting
– Small grids need stabilization
– Technology is changing rapidly
http://www.homerenergy.com
Clean Power Evolution
• Large utilities
– Security obstacles
– Regulatory obstacles
• Smaller systems
– Liquid fuels from oil
– High renewable penetrations
Micro-grids with distributed controls for reliability and efficiency
http://www.homerenergy.com
Military Bases
Developing
Country On-
Grid
Forward
Operating
Bases
Developing
Country Off-
Grid
Fuel
Savings
Reduced
Emission
s
Renewable Energy
& Electric Vehicle
Grid Integration
Campuses
without CHPEcotourism
Campuses
with CHP
Islands
Mines
Emergency Services
Reliability
Microgrid Value Proposition
http://www.homerenergy.com
Conclusions
• Too many choices
• Doing nothing is the worst choice
• Fully integrated hybrids provide high quality power
• Storage technology and costs are improving rapidly
– Still requires careful analysis
http://www.homerenergy.com

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Rural Electrification Models and Costs - Homer Energy

  • 1. Optimizing Clean Power Everywhere 1790 30th St, Suite 100, Boulder, Colorado 80301, USA http://www.homerenergy.com ● +1-720-565-4046 Rural Electrification Models and Costs Dr. Peter Lilienthal peter@homerenergy.com
  • 2. Too Many Choices Hydro Geothermal Demand Response Smart grids Micro-grids http://www.homerenergy.com
  • 3. What is best? • Depends on the application –Resources –Loads –Equipment prices –Equipment performance • A confused mind says “No!” • HOMER fits the pieces together http://www.homerenergy.com
  • 4. Modeling Challenge • Solar and wind are variable – Chronology is important – Needs integration with dispatchable resources • Smaller projects need simpler tools http://www.homerenergy.com
  • 5. HOMER • Industry standard for hybrid micro-grids – Conventional resources – Renewable resources – Storage – Load Management http://www.homerenergy.com
  • 6. HOMER • NREL: 1992-2009 • Original developers now at HOMER Energy • 122,000+ users in 193 countries 0 200 400 600 800 1,000 1,200 20102009200820072006200520042003200220012000 New users per month http://www.homerenergy.com
  • 7. HOMER Analysis Layers • Simulation – Accurate analysis of time varying loads and resources require an hour- by-hour analysis for entire year • Optimization – Find the least cost solution • Sensitivity Analysis – The data is never “good enough”. – What if….? Simulation Optimization Sensitivity Analysis Energy Balance http://www.homerenergy.com
  • 8. HOMER bridges different worlds Renewable Advocates Utility Operators HOMER Model Power Engineers Financiers HOMER as a communication tool http://www.homerenergy.com
  • 9. Flexible Data Requirements • Rough estimated inputs for general analysis – Annual averages for resources and loads – Cost per kW or unit for equipment • Detailed inputs for system design – Measured hourly data – Detailed cost curves – Create your own wind turbine, battery, fuels http://www.homerenergy.com
  • 10. Answers from HOMER • Optimal System Design • Cost Breakdowns and Comparisons • Resource Analysis • Technology Development Targets • Policy Analysis • Operational Analysis http://www.homerenergy.com
  • 11. Policy Analysis • Cost of emission constraints 0 5,000 10,000 15,000 0.0 0.2 0.4 0.6 0.8 1.0 1.2 LevelizedCostofEnergy($/kWh) Levelized Cost of Energy vs. Max. CO2 Emissions Max. CO2 Emissions (kg/yr) http://www.homerenergy.com
  • 12. Operational Analysis • When is backup power needed? Jul 10 Jul 11 -5 0 5 Power(kW) AC Primary Load PV Pow er Diesel Pow er Battery Pow er http://www.homerenergy.com
  • 13. Rural Electrification Models and Costs • Individual Systems – Solar Lanterns – Solar Home Systems – Renewable Power for Micro-enterprise • Microgrids – Part-time diesels – Small 100% renewable systems – Fully integrated hybrid systems http://www.homerenergy.com
  • 14. Paths to Full Electrification http://www.homerenergy.com Kerosene & Batteries Individual solar systems Part-time diesels Fully integrated hybrids
  • 15. Part-time Diesels • Low capital cost – Popular with funders • High fuel costs – Questionable sustainability • Poor part-load efficiency – Without batteries, only supply evening power – Little economic development potential • Little incentive for energy efficiency http://www.homerenergy.com
  • 16. Individual Solar Systems • Simple, typically DC • Have become inexpensive • Can provide 24 hour power • Without backup genset – Only supply limited quantities – Battery management is the challenge • Temptation to over-discharge • Difficult to equalize battery cells http://www.homerenergy.com
  • 17. Fully integrated Hybrids • 24 hour AC power – Often better than the central grid • Batteries for off-peak loads • Diesel for peak loads • Solar to minimize diesel usage • Basically a mini-utility – Metering, tariff collection, admin. challenges – Pre-pay meters http://www.homerenergy.com
  • 18. When is grid extension better? http://www.homerenergy.com
  • 19. Hybrid Design Tradeoff More Diesel More Storage Solar Home Systems Multi-megawatt scale systems Small Systems Large Systems High Penetration Low – Med. Penetration http://www.homerenergy.com
  • 20. Size Makes a Difference • Battery based systems – < 1 kW, no backup genset – 1-100 kW, single genset, infrequently used • Diesel based systems: > 100 kW – Multiple gensets should be optimized – Role of batteries evolving rapidly • Stabilization • Spinning reserve • Diesel off during off-peak hours http://www.homerenergy.com
  • 21. For small systems, PV is cost-effective, almost everywhere. http://www.homerenergy.com PV is cost-effective Not cost-effective
  • 22. Community Systems with Optimized Diesel http://www.homerenergy.com PV is cost-effective Not cost-effective
  • 24. Diesel grid parity $0,00 $0,10 $0,20 $0,30 $0,40 $0,50 2001 2004 2007 2010 2013 CostofPower($/kWh) PV Diesel http://www.homerenergy.com
  • 25. Different Definitions of Penetration • Instantaneous Penetration – High winds in the middle of the night – Most useful measure for integration analysis • Factor of five difference from energy metric From: High Penetrations of Renewable Energy for Island Grids in Lilienthal, Power Engineering, November, 2007 http://www.homerenergy.com
  • 26. Levels of renewable regimes • More renewables requires: • More intelligent controls • Storage, electric or thermal • Load management Low No Special Controls Medium Control excess renewables High Re-dispatch diesels Very high Operate diesel off St. Paul, Alaska http://www.homerenergy.com
  • 27. Penetration Analysis from HOMER http://www.homerenergy.com
  • 28. Lessons from the Remote Market • What to do when the wind blows too strongly – Secondary loads • What to do when it stops too abruptly – Load management as “spinning” reserve • What to do with storage – Not just for load shifting – Small grids need stabilization – Technology is changing rapidly http://www.homerenergy.com
  • 29. Clean Power Evolution • Large utilities – Security obstacles – Regulatory obstacles • Smaller systems – Liquid fuels from oil – High renewable penetrations Micro-grids with distributed controls for reliability and efficiency http://www.homerenergy.com
  • 30. Military Bases Developing Country On- Grid Forward Operating Bases Developing Country Off- Grid Fuel Savings Reduced Emission s Renewable Energy & Electric Vehicle Grid Integration Campuses without CHPEcotourism Campuses with CHP Islands Mines Emergency Services Reliability Microgrid Value Proposition http://www.homerenergy.com
  • 31. Conclusions • Too many choices • Doing nothing is the worst choice • Fully integrated hybrids provide high quality power • Storage technology and costs are improving rapidly – Still requires careful analysis http://www.homerenergy.com