Powering the World with Clean Energy Reliable Renewables: wind, solar and hybrid solutions Keys to Success for Deployment of Renewable Power on Islands IRENA Forum 2015 Martinique June 2015

2 Subsidiaries RE plants 25 YEARS’ experience on REMOTE and INSULAR areas 1992: first hybrid system 40 WIND & PV plants installed on islands worldwide 5 continents - 35 countries 4 subsidiaries of maintenance and local partners Vergnet group: a history made in islands

3 Keys to Success for Deployment of Renewable Power on Islands Opportunities for Islands? Overview of successful RE developments Risk profile of renewable energy projects Is there an ideal RE investment scheme? Overcoming Islands challenges: Enabling environment Technical (case studies) Setting appropriate goals

4 Opportunities for Islands? 100 kWp = 44 T of diesel fuel saved/year 1 GEV MP-C Wind Turbine = 131 T of diesel fuel saved / year

5 Overview of successful RE developments (Wind & PV) Nevis  PPA Guadeloupe  FIT Vanuatu  Utility Kiribati  Grant > 21 MW wind 30% RE National support High FIT attractive for small scale projects 2.2 MW Private developper & investor Enabling environment (Gvt & Utility support) MW wind >30 % Average RE Utility decision, financing capability Step up approach ( turbines) 1.3 MWp PV Hybrid management Quick deployment time Support from gvt/utility Preliminary studies financed

6 Risk profile of renewable energy projects  Energy resource assessment, site location, design, technology  Grid connection, offtake agreement  Permitting, land acquisition Project DevelopmentProject Construction Project operation Risk Level  Actual site conditions, Suitability of the Equipment to local conditions (Logistics)  EPC track record, Project management  Regulatory change, interconnection  Reliability of Equipment, suitability to local conditions (corrosion, cyclones…), Local O&M competencies  Interest rates, labour costs  Regulatory change Technical Commercial Regulatory

7 Is there an ideal RE Investment scheme? Not a unique Scenario No fast track to success :  Enabling environment necessary  Cooperation between stakeholders  Ensuring sustainability of the project : importance of capacity building ModelInvestment in Preliminary feasibility studies Land acquisition Project FundingConstructionOperation FIT/!\ PPA/!\ Utility/!\ or Grant/!\ or /!\

8 Setting clear RE objectives  All stakeholders to go in the same direction  Roadmaps, RE target…  Cooperation between Utility, Public authorities, IPP …  Adapt regulatory framework and Utility’s business model to increase RE share (IPP, distributed generation) compatible with the country’s RE objectives Initiating small & medium-scale RE projects:  Many investors, few developers  Facilitating the feasibility and resource assessment studies is decisive to the success of smaller projects (IRENA, FASEP, Development banks support, country support…) Overcoming Islands challenges Necessity for an enabling environment

9 Overcoming Islands challenges Choosing the right technology for the right site (Logistics, weather conditions, consumption)

10 Optimizing the design for the best ROI (Homer, Copex, etc.) System designDiesel + PV (Existing) Diesel + PV + Wind +500kW/560kWh Diesel + PV + Wind +1MW/1MWh €/l Diesel fuel Capex0 Capex +10% COE (Cost of Electricity) in €/kWh Renewables share8.2%54%77% Overcoming Islands challenges

11 Managing Intermittent energy and Variable load Efficient Hybrid control is the key Overcoming Islands challenges

12 Grid Network analyzer PV + inverter Gensets LOADS Wind turbines + PLC Hybrid Wizard © controller: solution for islands One or several power analyzers are distributed on the grid Most of the time, network analyzers are linked with an optical network Voltage Frequency Current Flickers coef. Harmonics (%) Grid resilience SCADA All measured values are transmitted to Hybrid Wizard © Optical fiber Power instructions Hybrid Wizard © calculates in real-time new power instructions Samoa 550 kW wind farm (running) Kiribati 500 kWp PV plant (building) Mauritania 4.4 MW wind farm (running) 1.3 MWp PV plant (building) Overcoming Islands challenges

13 Case Study 1: Walking before running – Wind diesel on mining site LocationMauritania TechnologyHybrid wizard controller, no storage Installed Capacity Wind: 4400kW Diesel: 4 x 4000 kW Peak load kW

14 Case Study 1: Walking before Running – Wind diesel on mining site Actual average penetration of Renewables since June 2013 = 1 TURBINE PAID FOR AVERAGE WIND SHARE: 30% FUEL CONSUMPTION: - 30% DIESEL SAVINGS: T /year EVERY 3 MONTHS

15 Case study 2: Ensuring Grid Stability - Hybrid PV system for remote island LocationKiribati Hybrid Technology Hybrid Wizard controller Installed Capacity PV: 1.3 MWp ( kWp) Diesel: 5.45 MW Peak load3500 kW (Week)

16 POSSIBLE OVERCAPACITY OF PV PRODUCTION DURING WEEK-END Hybrid Wizard: Real time management of PV and Diesel power plants Fuel savings: 596 T / year Genset minimum setpoint: 30% Case study 2: Ensuring Grid Stability - Hybrid PV system for remote island

17 Case study 3: Selecting the proper approach- High penetration Wind- Diesel system for island LocationCaribbean Island Hybrid TechnologyHybrid Wizard controler Installed Capacity Wind: 1.925MW PV: 114kW Diesel: 1.9 MW Battery for spinning reserve Peak load1.3 MW

18 Case study 3: Selecting the proper approach- High penetration Wind- Diesel system for island Wind Genset PV Wind Genset PV WIND POWER BATTERY AVERAGE RE SHARE PEAK RE SHARE RE USAGE DIESEL SAVINGS 1.37MW NO 40% 70% 100% m 3 /year 1.92 MW YES 70% 90% 100% m 3 /year Option 1: Hybrid Wizard without Battery storage Option 2: Hybrid Wizard + Battery storage for spinning reserve Capex: - 35% vs Option 2 Capex > Budget

19 Setting appropriate goals Grid Stability and power quality must drive the development of RE projects in islands  Consumption : minimum and maximum loads, grid parameters  Possibility of performing grid measurements, identify weak points, etc. Walk before running  Set reasonable targets for penetration rates and have a step by step approach (ex: 1 turbine + 10, 30% penetration before targetting 70%)  Grid stability : the project must be immediately a success  Project a flexible system, able to adapt to the grid evolutions  Possible evolutions of the consumption  Integration in the plans for development of the infrastructures of the territory Capitalize on the potential of variable energy for Islands  PV, Wind, low-medium penetration systems are on parity with diesel costs in most islands locations.  Intermittent (Wind & PV) = 2/3 of planned generation in the Caribbean  Quick deployment  Mature, scalable technology: Possibility to improve the system and targets : technology is evolving fast

20 Technology is ready Wind and PV bring significant savings with high quality & reliability Short payback time if good resource Thank you Istvan Ponsot –