Visibility at the grid edge; integration of sensors and data analytics for distributed generation; smart contracts for energy management; flexible demand; intelligent control systems — these are the buzzy technologies of today that will become standard operations for utilities, system operators, and power producers to maximize the global renewable energy fleet.
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Advances in distributed technologies at the frontiers of the
energy system can provide power where the traditional grid is non-existent,
inadequate, expensive or too distant for connection.
These technologies, and the innovative business models that
deploy them, can deliver not just energy but also economic opportunities to the
two billion people not reliably served by the energy industry today. But where
exactly are the opportunities? Who are the leaders in the sector? Which markets
are they likely to capture?
1. The
largest solar deal in Africa last year was off the grid
- Small-scale solar projects, including debt financing for distributed portfolios, accounted for five of the eleven largest solar deals in Africa between January and October 12, 2017.
- This is not necessarily because off-grid financing is a large market, but because many utility-scale projects in the pipeline struggle with permitting, land acquisition, securing a power purchasing agreement and financing. Off-grid solar companies may be able to move faster because they do not require regulated tariffs.
2.
Distributed energy outside the OECD is a $40 billion industry
Diesel
generators have long been the technology of choice in areas where reliable grid
electricity is unavailable. In 2015, developing countries bought and installed
about 600,000 units annually, totaling an estimated 29GW of capacity. About
half of this is in units smaller than 0.3MW. There is a mature market and
supply chain to sell, fuel and maintain this kit. Despite usually being
competitive with diesel, solar currently has less than 3% of the market for
distributed energy capacity in developing countries, but considerable
potential.
Power
capacity additions in developing countries in 2015
3. Solar
and storage make sense for telecoms
Hybrid
energy systems consisting of solar panels, a battery and a diesel generator are
the cheapest way to run the world’s one million telecom towers that today have
unreliable grid supplies. Telecoms and their suppliers spend around $3.8
billion on diesel for their towers today, but solar has a market share of only
3%. But the market is picking up. Orange is working with Engie on re-powering
its towers in Senegal, Ivory Coast and Cameroon. Mitsui has invested $9 million
in India’s OMC, a start-up focused on solar-power for telecoms.
Estimated
cost of electricity to power an off-grid telecom tower in 2025
Source:
Bloomberg New Energy Finance. Note: solar hybrid is PV, diesel generator and
lithium-ion battery.
It is time for AMES - Clean Energy On Demand - to shine. One module can generate up to 90 kWh of energy a day which can serve 8-12 households. An array of 10 to 12 modules can provide uninterrupted source of energy for a village of 400 people.
