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Prepared by
1.0 Background
Since mid ‘80s renewable energy options such as solar power, small wind generators and
hydro power have become a viable alternative to the engine generator for remote or off-
grid locations. The initial cost of a stand-alone renewable energy option of a stand alone
renewable energy option is higher than a conventional engine driven by fossil fuel, but
has less or negligible operating cost. As the advantages of renewable energy became
more, both on the technology reliability & cost front, system designers started looking for
ways to combine both generators (renewable and fossil fuel based into one system and
get the best of them – more commonly known as hybrid systems). The term hybrid
power system is used to describe any power system with more than one type of
generator. Usually one of the generators employed is a conventional one (which
necessarily does not depend on renewable energy resource) powered by a diesel engine,
while the other(s) would be renewable viz. solar photovoltaics, wind or hydro.
This report on hybrid power systems puts across the current status, barriers for its
commercialisation and outlining the void for a case of technology transfer. As a part of
this international work package a study tour was carried out by Mr Chintan Shah of
TERI (OPET – India), while the outcome of this report is a joint effort put in by Tata
Energy Research Institute (TERI), Ademe (French National Agency) and Insula/ITER
(from Tenerife, Canary Islands). The work was done as a part of the International work
package commitments, co-funded by the European Commission under the 5 th RTD of the
Organisation for Promotion of Clean Energy Technologies (OPET) for the year 2000-
2001. The scope of this paper is limited to power generation options.
2.0 Introduction
In rural areas particularly of the developing world, where most of the population – up to
80% is located, more than 1 billion people lack the essential energy services needed to
satisfy the most basic needs and to improve economic status. The cost of grid for rural
electrification in rural area extension, sometimes very high, leads often the various
organisations to explore alternative solutions. In case of India, with considerable growth
in the Indian economy and increased mechanisation of agriculture and allied activities
over the last two decades, the commercial energy consumption including electricity has
grown rapidly. The state-run utilities have historically satisfied customer demand by
generating electricity centrally and distributing it through an extensive transmission and
distribution network. However, once demand reaches a certain level, the capacity of the
generation, transmission and distribution system becomes constrained. The traditional
utility response to these constraints is to build new facilities, leading to a very high
marginal cost. However, due to limited resources, such an approach is not feasible in
India, therefore, over the past decades the power consumers have been badly hit by
intermittent power. While, the laying of grid lines to service energy needs in far off areas
can prove to be a very expensive proposition.
Renewable energy sources, such as solar (photovoltaic), wind energy or small scale
hydro, provide a realistic alternative to supplement engine driven generators for
electricity generation in off-grid or far off areas. It has been demonstrated that hybrid
energy systems (renewable coupled with conventional energy source) can significantly
reduce the total life cycle cost of a stand alone power supplies in many off-grid
situations, while at the same time providing a reliable supply of electricity using a
combination of energy sources. Numerous hybrid systems have been installed across the
world, and expanding renewable energy industry has now developed reliable and cost-
competitive systems using a variety of technologies. Research in the development of
hybrid systems focussed on the performance analysis of demonstration systems and
development of efficient power converters, such as bi-directional inverters, battery
management units (storage facilities), optimisation of different sources of energy
sources, etc.
1
http://mnes.nic.in
2
Under review by several government agencies
?? Providing decentralised energy supply in agricultural, industry, commercial and
household sectors in rural and urban areas
?? Grid quality power (either in decentralised or grid connected mode)
India has started deploying hybrid energy systems in isolated locations, aggregating to a
couple of kWs’ capacity, which is minuscule to the current potential.
3
Not accessible, viz. island communities, forest & hills etc.
?? Employment opportunities created by co-operatives, contractors, auditing and
accounting firms.
4
Generally wind-solar hybrid
5
The market rate of capital in India is in the range of 12-14%.
Country Case-study: France
France has a particular position in the international country panel, no real fuel resource
exist in France and the development of electricity production has been mainly based on
Nuclear energy: 78 % of the electricity comes from nuclear energy, 12 % is provided by
large hydro power plants, 8% by fossil fuels and only 2 % are generated by alternative
solutions which include Renewable Energy Sources.
But, in the other hand France has one of the largest renewable energy potential among
the European countries. French forests cover the largest surface in Western Europe, the
wind resource is second ranking (60 TWh on earth, 90 TWh including off shore The .
hydraulic and geothermal potential is large, France takes benefit of a temperate climate
which favors solar applications.
In that context, both rural electrification and off-grid application in France is very
limited. It can be evaluated that no more than 5000 households are worthwhile to be
equipped with a stand-alone system (which in this case is mainly a hybrid system). On
the other hand, there is no need for additional power to meet France’s total consumption
(500 TWh/year for 60 millions of people in 1999).
But the situation changes dramatically if overseas territories are included in the France
experience. In this case, the national grid is supplied with thermal power plants, whose
price is higher and quality lower. A large potential exists for renewable, potential, which
is supported by legislative advantages both for the system supplier and the end-user.
In addition, French companies have participates for years to the development of the
French cooperation actions in Developing Countries which are within the French sphere
of influence (Africa, French-speaking countries). In that extend, most of the experience
in renewable energy for rural electrification can be found abroad.
In February 1998, the French Government formally approved a policy regarding energy
management and development of renewable energy sources. The Cabinet acknowledged
that renewable energies could contribute to sustainable development, to limit green
house effect, to save non-renewable resources, to create jobs and to contribute to local
and regional development.
The government organization, ADEME with its partners from industry and public
research set up new programs of activity.
National programme
The French Agency for Environment and Energy Management (ADEME) -a Government
Organization- is in charge of promoting the development of renewable energy sources
including photovoltaics (PV). The ADEME's promotion strategy is twofold:
?? to support research and technological development (RTD) on PV components,
photovoltaic systems and applications
?? to subsidize demonstration and dissemination projects
ADEME's four-year RTD programme on PV system components aims at reducing the
manufacturing costs and improving performance and reliability. The European
Commission also contributed to the RTD and demonstration/dissemination of
photovoltaics in France. ADEME has put in place mechanisms for promoting national
cooperation between industry and public research and share the financial costs (up to
50%) of applied research and technological development projects on all the components
of PV systems and their application. ADEME sponsored the first photovoltaic hybrid
power systems conference organized by Genec in Aix en-Provence (7-
8 September 2000).
ADEME also participates with its partners in international activities such as those of the
International Energy Agency (IEA) cooperative programme on photovoltaic power
systems or those of the International Electrotechnical Commission (IEC) for
standardization.
Transénergie, Cythélia, PHK, IED, SERT and Tecsol are active companies of consulting
engineers specialized in PV technology and project management. They participate in
strategic, feasibility and marketing studies funded by the European Commission,
development banks, utilities and ADEME. Other actors are also involved who combined
the technical and social aspects of rural development (Fondem).
Battery manufacturers have designed storage batteries that are more suitable for the
charging regimes associated with photovoltaic and hybrid applications. CEAC/Fulmen
Company is developing with photovoltaic system firms and Genec new concepts of
energy management of photovoltaic lead-acid storage batteries.
Legislation pieces
The main legislative framework that favors the development of the French PV market is
supported by a law which allows the owner of a PV system to declare its investments
(accelerated depreciation) and thus decrease its tax level. This law is still valid until 2006
and only applicable in French overseas departments and territories (Guadeloupe,
Martinique, Reunion, Guyana, and Polynesia).
Since 1993, ADEME, in collaboration with EDF, has launched a large program (FACE
programme: electrification taxes sinking fund) to finance the realization of low-voltage
local grid extension,. The programme promotes renewable energy powered energy
installations. Each such project is evaluated on the basis of the comparison of the
electricity grid extension costs and the costs of the service-equivalent stand-alone PV,
wind or micro-hydro installation.
Électricité de France (EDF) plays a role in remote area power supply markets. The
agreement signed in 1993 between ADEME and EDF, to promote the use of PV in sectors
where it proved to be commercially viable, allowed photovoltaic power systems to access
to a public source of subsidy called FACE. By the beginning of 2000, EDF acknowledged
that photovoltaic electricity would be paid 0.096 Euro per kilowatt-hour (corresponding
to net metering system) to the on-grid PV system owners.
Market development
The main stream of photovoltaic activity in France is that of off-grid applications where
PV has proven to be a cost-effective solution. The ADEME and the Regional Authorities
along with FACE fund and the tax exemption contracts in Overseas Departments are
contributing to the growth of domestic applications that represent 60% to 70% of
installations. The off-grid non-domestic (also called professional) market represents
30% to 40% of business and does not receive any public subsidy. The grid connected
built-integrated applications are an emerging market through demonstration operations
(400 kWp installed). The total installed capacity in continental France and its overseas
departments/territories is around 10.5 MWp, while the average annual installation is
pegged at 1 MWp per year.
ADEME's policy consists of implementing conditions for preparing efficient products
offering quality service to users who are beyond the reach of electricity networks. The
implementation of suitable structures taking up concessions through EDF on PV
installations, and the access to various sources of financing (FACE fund, Tax exemption,
Regional Authorities, etc.) were decisive factors of progress.
Photovoltaic rural electrification programmes are financed up to 95% with FACE fund.
FACE (Fund for amortization of electrification costs) is a public fund traditionally
devoted to extending and reinforcing electricity networks in French rural areas.
Until the end of 1999, grid-connected PV domestic power systems were not promoted by
ADEME and EDF as a priority but a private initiative of a user's association installed
around 230 "PV roofs" in the peak-power range of 1 kWp with partial funding from the
European Commission. By the beginning of 2000, ADEME set up a targeted
demonstration programme on dispersed on-grid built-integrated photovoltaic systems in
cooperation with European Commission program (DG TREN) aiming at installing in
continental France 500 kW in three years.
The International Energy Agency has made a detailed collection of installation in France:
?? off-grid installations : 8772
?? grid-connected installations : 349
?? Centralised PV- power plant : 0
In the recent past, ADEME was involved in rural electrification cooperation projects in
Morocco (training programmes), selected African countries and Indonesia (Transindo
project of 4 hybrid PV/diesel village power systems).
More than 500 sites have been equipped with photovoltaic installations within the
French FACE program. Amongst them, a majority uses a diesel generator owned by the
user, while the rest are the property of EDF.
?? all appliances for domestic applications (lighting, cooking, washing equipped with an
energy dispenser)
In addition, a large number of installations are located in overseas territories both for
private houses or professional applications (telecommunications, Hotels, Departmental
administration). The local authorities and Europe dissemination programmes fund these
installations.
One typical example of an island hybrid system installed in the French Brittany
(Northwest Atlantic ocean), in a preserved area called “Les Glénans” island. The center
serves as training center for sailing and diving, along with an ornithological reserve in
wintertime.
In addition, this solution could be seen as a temporary situation waiting for the national
grid, in this case, the extension of the grid is facilitated and the quality of the service
provided by the final grid will be higher than in the case of a star-extension grid.
Some other projects have been also leaded by French companies in Africa (Mauritania,
Morocco and Madagascar), which try to take advantages of the lessons learned in the
TransIndo project, aiming at standardized the components of the system and reproduce
the exploitation scheme.
Main goals of ADEME's RTD programme are cost reduction for photovoltaic cells and
modules by decreasing their manufacturing costs and by increasing their conversion
efficiencies through innovative manufacturing processes or technical optimization of
existing low cost processes.
Genec is playing an active role in monitoring the results of the TransIndo project in
Indonesia, right from the design of the system to the optimization of the energy
management algorithm. Functional and performance tests have been performed in the
Genec solar platform to evaluate and improve the overall efficiency of the system and its
components, both in the lab and on-site.
Mr Chintan Shah visited hybrid energy facilities and installation in the France and
Canary Islands. The visit consisted of a visit to laboratories and facilities of Ademe and
Genec in France and ITER in Canary Islands.
Genec is a laboratory housed in CEA (French Atomic Energy Authority). Genec has been
working in the field of PV based hybrid energy systems, battery/storage technology &
solar thermal energy from about 20 years. Currently, the laboratory is optimising a PV
and diesel generator based hybrid energy systems at the test station in Cadarache.
Further, the laboratories has a separate group work on battery technology, and have
improved upon lead-acid type of batteries for hybrid system applications, such, that the
battery life has been enhanced from an average of 6-7 years to 12-13 years.
A detailed discussion with Dr Pascal Boulanger, was done, by presenting scenarios for
hybrid energy applications in respective countires. It was concluded that the experience
and technologies developed by Genec, can be judiciously applied in India. It was
suggested to test run the prototype PV-diesel generated based hybrid energy systems for
Indian conditions, by inducting wind energy generator at a test site in Mithapur in India.
TERI has its own testing facility in India for wind battery chargers and hybrid energy
systems.
Further, Genec has extensive experience in interphase electronics used in hybrid energy
systems. There is felt a huge vaccum of such components for the applicability of hybrid
energy systems in India, hence its possible to have a trans-national co-operation in this
field.
Meeting with other French companies showed a positive response in tying up with TERI
for Indo-French co-operation project in the field of hybrid energy systems.
ITER has been working in the field of hybrid energy systems, and they have also
developed an interphase electronics for the same for hybrid energy systems for both off-
grid and grid connected applications under the COPERNICUS programme of the
European Commission.
7.0 Conclusions
The hybrid energy market in India is chiefly driven by government led incentives, while
they are not designed with the economic returns of the populace at the local level. Such
an approach would create the dependence of the hybrid market on the subsidy
mechanism. Further, the restriction of hybrid power systems to 100% renewable energy
back-ups is also no logical, for hybrid systems of bigger sizes6. During the study tour to
different facilities in the France and Canary Islands the following things came out.
1. Genec, has developed a PV-Diesel hybrid power systems, which is currently under
monitoring & testing, possibly such a system can be tried out in India by coupling
with wind generators
2. There is a requirement felt for transfer of know-how and technology in hybrid energy
systems to be used for rural electrification. Possible joint proposal for setting up
demonstration units for rural electrification should be tried out.
3. ITER in the Canary Islands have put up hybrid based desalination plant and suitable
electronics for power generation. The transfer of technology in the balance of
electronics in the hybrid systems is not fully developed in India developed.
6
Where wind-diesel makes a greater sense
4. List of contacts
France
1. Dr Pascal Boulanger, Genec
2. Mr Jean-Michel Sers, Ademe
3. Mr Fabrice Juquois, Ademe
4. Mr Guy Oliver, Total Energie
5. Mr Lecourt Marc, Sunwatt France
6. Mr Jean-Christian Marcel, Transenergie