feasibility of large scale solar pv in...

Feasibility of Large Scale Solar PV in Nepal

Solar Power to Fight Nepal’s Energy Crisis

- Presentation to IOE Centre for Energy Studies-

Sandeep GiriPresident, Gham Power Nepal Private Limited

Kathmandu, [email protected]

March 12, 2009

All Rights Reserved © 2010, Gham Power Nepal Private Limited

About the Speaker: Successful Silicon Valley Entrepreneur Returns to Nepal to Tackle Energy Crisis

Born and Raisedin Nepal

Technology EntrepreneurGeek with Biz Cred

Obsessed with Clean Tech

Educated in US;MS in Computer Science;Solar Energy Certification (U of California-Berkeley)

CEO, Loyalty Matrix (’02-’07)Grew 5-person Company in SFO

to $2 Million in Revenue;Acquired by Responsys in 2007

CEO, OpenI (’07-Present)Open Source Business Intelligence;

Established Offshore SisterCompany Codemandu in Kathmandu

President, Gham PowerCouldn’t Watch Nepal’s Energy Crisis From Sidelines;

Founded Gham Power as Exclusive Partner of a Premier American Solar Company;

Financing from Clean Energy Development Bank;

SandeepGiri


Gham Power: Exclusive Dealer Representative for Solar Power, Inc.

Solar Power Inc. is a Public Company in US; Their Solar Panels are Rated #1 in the World for Performance.

Gham Power is their Exclusive Dealer Representativefor the Entire Country of Nepal.


Problem, Opportunity,and Solution


The Problem: Nepali Energy CrisisGovernment imposed a daily 16-hour electricity blackout starting November 2008; this is a protest march of electric 3-wheeler taxis rendered useless. Load-Shedding is projected to continue for at least next 10 years.


Inadequate Electricity Supply with Limited Scalability Results in Band-Aid Solutions

Energy Supply and Demand in Nepal

0

200

400

600

800

1000

1200

1400

2009 2010 2011 2012 2013

Peak Load (MW)

Demand

Supply

Country’s Total Peak Demand: 800 MW;Country’s Total Capacity: ~500 MW;~100 MW of New Power Plants Underway, but Takes 4-5 Years to be “Online”

Band-Aids:• Daily 16-Hour Blackout• Horde w/ Inverter/Battery• Diesel Generators

.. which is not enough, meaning..

People set alarm for 2 am so they can iron their clothes

A family is without any water for 3-4 days since water pump doesn’t run

Businesses have to reduce hours of operation, specially at night

Even those with diesel generators not better off since fuel supply is not certain


Why Not Solar? Conditions are Great!

• Nepal in Prime Solar Area• Average 5 Sun hours/day • 5.5-6.0 Kwh/m2/day

(World leader in Solar Germany gets 2-3 kwh/m2/day)


Big Opportunity to Serve Urban and Commercial Sector

• ~50 Solar Installer Companies in Nepal;Almost All Focus on Rural because of Subsidies

• Energy Demand Higher in Urban/Commercial –Yet Completely Underserved

• IF Solar Available at Price of Diesel, Big Opportunity to Serve Those Buying/Considering Diesel Today


Large Scale PV Installations


How Does Solar PV Work?

All Rights Reserved © 2009, Gham Power Private Limited

Typical Solar PV Installation is on Roof

Sometimes Also in Open Yard Area

Parking Lot Installations Common for Businesses

Large Scale Solar Power Plants becoming more Common like this one in Germany (10 MW)

Solution: Solar as Complete Power Alternative with Costs Less than Diesel Generator

PremiumResidential

LuxuryResidential

Commercial

• For typical single family urban Nepali home:

• 1-2 kwh/day production• Lights• TV and Computer

OR ½ HP Water PumpOR Household Applianceslike Fridge, etc.

• For typical multi-familyurban Nepali home:

• 3.5 kwh/day onwards• Lights• TV and Computer• 1+ HP Water pump• Common Household

Appliances (Fridge, Rice Cooker, Iron, etc.)

• For retail stores, officespaces, warehouses

• All lighting• Phone, fax, computers• Air Conditioner• Refrigerators, Freezers• Office appliances• Machinery


Price Ranges and Financing

Products Premium Residential

Luxury Residential

Commercial

Typical Pricing (*these are ranges, actual prices might vary, based on a 5-year loan at 12%)

Size 185 w ½ kw 5 kw

Daily Production

1.1 kwh 3.4 kwh 34 kwh

Cost per Month with Financing

Rs. 2,900

(~$35)

Rs. 7,548

(~$ 100)

Rs. 73,674

(~$1,000)

Cost/KWH

(*10-year)

$ 0.60

Rs. 45

$ 0.51 or

Rs. 38

$ 0.46 or

Rs. 35


Clean

$$$

Competition: Diesel is Unreliable, Cumbersome, Expensive, and Dirty

DieselGenerator

Total Cost ofOwnership

Ease of UseAvailability

$$

Noise

Fumes

Silent

No Moving Parts


Challenges: Myths, Cost and Technology


Eradicate Nepali Myths on Solar with Facts

Myth #1:Solar only runs lights, can’t power heavy equipments

Fact:Only constraining factors for solar are the size of inverter and

the total surface area available to install solar panels


Myth #2:In winter, solar water heaters become completely useless! How is Solar going to generate electricity when it’s so cold?

Fact:Solar PV Technology has nothing to do with temperature.It only needs sunlight to produce electricity, not the heat!

Batteries Make Off-Grid PV More Expensive


Per-Watt Subsidies and Net Metering Needed to Reduce Costs

Problem: On-Grid Assumes “Always-On” Grid


Possible Solution: AC Mini-Grid


Suggested Research Topic for IOE Center of Energy Studies

Examples: Seeing is Believing


Reference Installations by Solar Power, Inc.Gham Power’s Partner Company in the USA

STAPLES Center, Nokia TheaterLos Angeles, CA

Location: Los Angeles, California

Installation Type: SkyMountTM

Rooftop

System Size : 345.6 Kilowatts

STAPLES Center, Nokia TheaterLos Angeles, CA

AerojetSacramento, CA

Location: Sacramento, California

Installation Type: Single-axis Tracker

System Size : 3.6 Megawatts

AerojetSacramento, CA

4.4 kW ResidentialRoseville, California

7.6 kW ResidentialGranite Bay, California

7.6 kW ResidentialRoseville, California

9.45 kW ResidentialGranite Bay, California

Summary

• Energy Crisis in Nepal = Opportunity for Solar for Urban and Commercial Sector

• Solar must be Available at Price of Diesel to Compete in Large Scale

• Needed

– Awareness: Runs heavy equipments, doesn’t need heat

– Policies: Subsidies, Net Metering

– Technology: Reducing Battery Costs (“AC Mini Grids”)


Thank You!


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