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DOE OSTI2016

Quality Assurance Framework for Mini-Grids

Providing clean and affordable energy services to the more than 1 billion people globally who lack access to electricity is a critical driver for poverty reduction, economic development, improved health, and social outcomes. More than 84% of populations without electricity are located in rural areas where traditional grid extension may not be cost-effective; therefore, distributed energy solutions such as mini-grids are critical. To address some of the root challenges of providing safe, quality, and financially viable mini-grid power systems to remote customers, the U.S. Department of Energy (DOE) teamed with the National Renewable Energy Laboratory (NREL) to develop a Quality Assurance Framework (QAF) for isolated mini-grids. The QAF for mini-grids aims to address some root challenges of providing safe, quality, and affordable power to remote customers via financially viable mini-grids through two key components: (1) Levels of service: Defines a standard set of tiers of end-user service and links them to technical parameters of power quality, power availability, and power reliability. These levels of service span the entire energy ladder, from basic energy service to high-quality, high-reliability, and high-availability service (often considered 'grid parity'); (2) Accountability and performance reporting framework: Provides a clear process of validating power delivery by providing trusted information to customers, funders, and/or regulators. The performance reporting protocol can also serve as a robust monitoring and evaluation tool for mini-grid operators and funding organizations. The QAF will provide a flexible alternative to rigid top-down standards for mini-grids in energy access contexts, outlining tiers of end-user service and linking them to relevant technical parameters. In addition, data generated through implementation of the QAF will provide the foundation for comparisons across projects, assessment of impacts, and greater confidence that will drive investment and scale-up in this sector. The QAF implementation process also defines a set of implementation guidelines that help the deployment of mini-grids on a regional or national scale, helping to insure successful rapid deployment of these relatively new remote energy options. Note that the QAF is technology agnostic, addressing both alternating current (AC) and direct current (DC) mini-grids, and is also applicable to renewable, fossil-fuel, and hybrid systems.

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DOE OSTI2017

Quality Assurance Framework for Mini-Grids

To address the root challenges of providing quality power to remote consumers through financially viable mini-grids, the Global Lighting and Energy Access Partnership (Global LEAP) initiative of the Clean Energy Ministerial and the U.S. Department of Energy teamed with the National Renewable Energy Laboratory (NREL) and Power Africa to develop a Quality Assurance Framework (QAF) for isolated mini-grids. The framework addresses both alternating current (AC) and direct current (DC) mini-grids, and is applicable to renewable, fossil-fuel, and hybrid systems.

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DOE OSTI2024

Adapting Agrivoltaics for Solar Mini-Grids in Haiti

With less than 2% of the rural population with access to electricity and almost half the population facing acute hunger, Haiti faces interconnected challenges of energy poverty and food insecurity. One solution to help address energy poverty in Haiti has been the development of distributed solar, particularly solar mini-grids. However, often the land best suited for deploying solar generation is also best suited for agriculture by smallholder farmers, thereby creating a potentially complicated tension between energy access and food security. To address this tension, solar developers, agricultural specialists, and researchers are jointly examining a novel solution called "agrivoltaics." Agrivoltaics is a shared land-use solution that is rapidly expanding in established solar markets like the United States, Europe, and Asia that pairs solar with agriculture, producing electricity and providing space for crops and animal grazing under and between panels. As part of the Energy Access Partnership for Haiti with the U.S. Agency for International Development (USAID), the National Renewable Energy Laboratory (NREL) performed an initial feasibility analysis and stakeholder engagement project to evaluate the potential for agrivoltaics in mini-grid contexts in Haiti. The analysis considered typical 100-kW and larger 1-MW mini-grids in towns across Haiti and developed two example agrivoltaic archetypes based on key local inputs, including solar irradiance, production data from the agricultural census, market prices, stakeholder interviews, and existing agrivoltaic research. See NREL/TP-7A40-89399 for the Haitian Creole translation of this document.

14 SOLAR ENERGY↗

DOE OSTI2017

Kokhanok Mini-grid Business Case

A business case analysis was performed for the Village of Kokhanok. The business case analysis evaluated the optimal case from the technical analysis performed by the National Renewable Energy. The optimal case provided for repairing the two Vestas 17 (90 kW) wind turbine controllers and added electric thermal stoves and a battery. The project cost 0.5 million. The direct cost of electricity would likely decline from 0.69/kWh to 0.39/kWh. The direct costs don’t include administrative and distribution costs. The repair of controller and the addition of electric stoves reduced fuel consumption by 63% or approximately 22,000 gallons. The reduction in cost provides an opportunity for the Kokhanok Village Council to obtain financing through grants and loans to install renewable energy and reduce diesel fuel consumption to the cooperative

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

DOE OSTI2017

Chefornak Mini-grid Business Case

A business case analysis was performed for the Village of Chefornak. The business case analysis evaluated the optimal case from the technical analysis performed by the National Renewable Energy using HOMER. The optimal case adds an 800 kW wind plant with 650 kW of electric thermal stoves and a 300 kW battery. The project cost 5.8 million. The direct cost of electricity would likely decline from 0.41/kWh to 0.30/kWh. The direct costs don’t include administrative and distribution costs. The addition of the renewable resources and thermal electric stoves reduced total fuel consumption by more almost 80% or approximately 103,000 gallons. The reduction in cost provides an opportunity for Chefornak’s utility, the Naterkaq Light Plant, to obtain financing through grants and loans to install renewable energy and reduce overall fuel consumption to the community.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

DOE OSTI2017

Shungnak Mini-grid Business Case

A business case analysis was performed for the Village of Shungnak. The business case analysis evaluated the optimal case from the technical analysis performed by the Sandia National Laboratory using Microgrid Design Toolkit (MDT). The optimal case adds a 500 kW wind plant, 100 kW of solar photovoltaics (PV), 100 kW diesel and 46 kW of electric thermal stoves. The project cost 4.3 million. The direct cost of electricity would likely decline from 0.63/kWh to 0.55/kWh. The direct costs don’t include administrative and distribution costs. The addition of the renewable resources reduced diesel fuel consumption by more than 74% or approximately 96,000 gallons. The reduction in cost provides an opportunity for Alaska Village Electric Cooperative to obtain financing through grants and loans to install renewable energy and reduce diesel fuel consumption to the cooperative.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

DOE OSTI2018

Financial and Operational Bundling Strategies for Sustainable Micro-Grid Business Models

One of the biggest barriers to the scale up of mini-grids in Sub Sahara Africa ('SSA') is access to finance. While there are plenty of government and donor-led initiatives, private investment in the mini-grid sector has been slow to take off because of the high level of risk to reward and the relatively high transaction costs compared to larger grid-tied projects. Specific challenges for mini-grids include policy and regulatory risk, a lack of proven business models, and uncertainty about demand and the ability and willingness of customers to pay. Bundling or aggregation of mini-grids is one potential solution to these challenges. At its simplest, bundling means combining projects or different aspects of projects (eg. financial, operational and service) into a portfolio to create economies of scale (eg. lower costs, mitigation of risks, reaching an investment size that is attractive to more financiers.) There are two main types of bundling: Operational bundling - aggregation of similar projects (eg. similar business model, geographical area, technology or customer type) in order to reduce development and operating costs, - Financial bundling - aggregation of projects into a portfolio in order to attract more private investors through the larger ticket size and portfolio de-risking. This report looks at the different mini-grid business and financing models, and the opportunities and challenges around financial bundling. It looks at techniques for bundling through donors and national governments such as tenders, auctions and results based financing. It considers financial pooling mechanisms, including funds for mini-grid growth and end user financing, and financial products for de-risking mini-grid investments. Finally, there are three developer case studies of financial bundling of mini-grids.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

DOE OSTI2017

Quality Assurance Framework Implementation Guide for Isolated Community Power Systems

This implementation guide is a companion document to the 'Quality Assurance Framework for Mini-Grids' technical report. This document is intended to be used by one of the many stakeholder groups that take part in the implementation of isolated power systems. Although the QAF could be applied to a single system, it was designed primarily to be used within the context of a larger national or regional rural electrification program in which many individual systems are being installed. This guide includes a detailed overview of the Quality Assurance Framework and provides guidance focused on the implementation of the Framework from the perspective of the different stakeholders that are commonly involved in expanding energy development within specific communities or regions. For the successful long-term implementation of a specific rural electrification program using mini-grid systems, six key stakeholders have been identified that are typically engaged, each with a different set of priorities 1. Regulatory agency 2. Governmental ministry 3. System developers 4. Mini-utility 5. Investors 6. Customers/consumers. This document is broken into two distinct sections. The first focuses on the administrative processes in the development and operation of community-based mini-grid programs, while the second focuses on the process around the installation of the mini-grid project itself.

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DOE OSTI2020

Cost-optimal evaluation of centralized and distributed microgrid topologies considering voltage constraints

Optimal design of hybrid renewable mini-grids requires both economic and power quality considerations. Existing modeling approaches address these considerations via separate or loosely coupled models. Here, we extend REopt—a techno-economic optimization model developed at the National Renewable Energy Laboratory—to consider both within a single model. REopt formulates the design problem as a mixed-integer linear program that solves for a site's optimal technology mix, sizing, and operation to minimize life cycle cost. REopt has traditionally assumed a single node system. In the work presented here, we expand the REopt platform to consider multiple connected nodes with associated voltage constraints. In order to do this, we model power flow using a fixed-point linear approximation method. Additionally, we then use the model to explore design considerations of mini-grids in Sub-Saharan Africa. Specifically, we evaluate under what combinations of transmission line distance and capacity it is technically viable and economically preferable to build multiple isolated mini-grids versus an interconnected, centralized system.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

DOE OSTI2024

Empowering Rural Electrification in Honduras: An Integrated Assessment of PV/BESS and Productive Uses of Electricity in Gracias a Dios

Honduras faces significant challenges in its energy sector, particularly in rural areas where access to reliable and affordable electricity remains limited. The flagship rural electrification initiative for Honduras Secretary of Energy (SEN) is the Politica de Acceso Universal a la Electricidad (PAUEH - Universal Electricity Access Policy), a key solution for addressing this energy poverty is the deployment of more than 1700 distributed solar and hybrid mini-grid solutions. In late 2023 as a first step towards supporting SEN's electrification efforts, the National Renewable Energy Laboratory (NREL) developed a literature review of SEN electrification policy documents and conducted a series of technical capacity-building workshops with SEN and other energy sector stakeholders in Honduras focused on using NREL's open-source REopt tool to conduct techno-economic assessments and develop least-cost optimizations for potential solar + storage mini-grid systems. Building on some initial capacity building on mini-grid modeling, the National Renewable Energy Laboratory (NREL) worked with SEN to develop a detailed techno-economic assessment for electrifying two schools, a healthcare clinic, and a hospital in a hypothetical community within the department of Gracias a Dios. The analysis also evaluates the business case for cold storage productive use of energy (PUE) applications for the fisheries value chain and how the incorporation of these PUE loads potentially impacts both the viability of the PV+BESS solutions as well as local economic development. By assessing the potential for deployment of integrated PV/BESS systems to both support critical community services like education and healthcare, as well as potential for downstream enterprise and economic development, this analysis represents a first step that can help to inform specific strategies for development of pilot PV+BESS projects aligned with national priorities and sector level planning under PAUEH.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

DOE OSTI2024

Fortalecimiento de la Electrificación Rural en Honduras: Una Evaluación Integrada de PV+BESS y Usos Productivos de la Electricidad en Gracias a Dios, Honduras [Empowering Rural Electrification in Honduras: An Integrated Assessment of PV/BESS and Productive Uses of Electricity in Gracias a Dios] (Spanish Translation)

14 SOLAR ENERGY↗

DOE OSTI2019

Introduction to the Topical Collection on Regional Renewable Energy – Africa

The investments in and provision of power across the African continent are undergoing dramatic transitions brought on by unprecedented technological advances, falling generation costs, and utility business model changes. This transition, now at various stages across the diverse continent, will employ novel approaches and recognize a diverse group of energy users and decision makers - powering development with the region's abundant supply of renewable energy resources. Policymakers, planners, and the private sector in Africa, like those around the globe, are employing new approaches to take advantage of economically attractive renewable energy generation, ranging from innovations in distributed systems enabling higher penetrations of renewable energy, micro- and mini-grids powered entirely by solar photovoltaics and storage for energy access, to large-scale renewable power generation and grid and market integration.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

DOE OSTI2021

USAID Energy Storage Decision Guide for Policymakers

The purpose of this report is to arm relevant decision makers with the initial layer of information they need to understand energy storage and to make informed policy, regulatory, and investment decisions around grid-connected energy storage. While many of the case studies presented in this report are based on experiences from the U.S. and Europe, the lessons learned can be applied to power sectors in emerging economies. Importantly, this report covers topics related grid-connected energy storage for power sector applications. The term “grid-connected” implies that the storage system is interconnected to a centralized power system. Topics related to off-grid, micro-grid and mini-grid energy storage applications are not covered in this report, nor are procurement practices for energy storage.

25 ENERGY STORAGE↗

DOE OSTI2022

Providencia Island White Papers: Overview of Technical Requirements for Interconnection

This issue brief provides an overview of key technical requirements for inverter-based resources - including distributed energy resources (DERs) - to support the reliable and safe operation of the Providencia Island electrical grid, and other island or isolated area mini-grid applications. With the planned increase in inverter-based resources and the introduction of energy storage, adopting Institute of Electrical and Electronics Engineers (IEEE) Std 1547-2018, including the more advanced performance capabilities for voltage and frequency ride-through, will simplify interconnection as well as help to maintain a safe, reliable grid on Providencia Island.

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DOE OSTI2024

Adapte Agrivoltayik Pou Mini-Rezo Sole Ann Ayiti

Ak mwens pase 2% nan popilasyon riral la ki gen akse a elektrisite ak preske mwatye popilasyon an ap fe fas ak grangou egi, Ayiti fe fas a defi entekonekte nan povrete eneji ak ensekirite alimante. Yon solisyon pou ede abode povrete eneji ann Ayiti se devlopman mini-griy sole distribiye, sitou sole. Sepandan, souvan te ki pi byen adapte pou deplwaye jenerasyon sole se tou pi byen adapte pou agrikilti pa ti femye yo, kidonk kreye yon tansyon potansyelman konplike ant akse eneji ak sekirite manje. Pou adrese tansyon sa a, devlope sole yo, espesyalis agrikol yo ak cheche yo ap egzamine ansanm yon nouvo solisyon ki rele "agrivoltayik". Agrivoltaics se yon solisyon pataje te-itilize ki rapidman elaji nan mache sole etabli tankou Etazini, Ewop, ak Azi ki pe sole ak agrikilti, pwodwi elektrisite ak bay espas pou rekot ak bet patiraj anba ak ant panno. Nan kad Patenarya Akse Eneji pou Ayiti a ak Ajans Ameriken pou Devlopman Entenasyonal (USAID), Laboratwa Nasyonal Eneji Renouvlab (NREL) te fe yon premye analiz posibilite ak pwoje angajman pati konsene yo pou evalye potansyel agrivoltayik nan konteks mini-gri an Ayiti. Analiz la te konsidere mini-grid tipik 100-kW ak pi gwo 1-MW nan vil atrave Ayiti epi li te devlope de egzanp arketip agrivoltaik ki baze sou kontribisyon lokal kle yo, ki gen ladan irradians sole, done pwodiksyon ki soti nan resansman agrikol la, pri sou mache a, entevyou ak moun ki gen entere yo, ak ki egziste deja, rechech agrivoltayik. See NREL/TP-7A40-88444 for the English translation of this document.

14 SOLAR ENERGY↗

DOE OSTI2018

Tariff Structures to Encourage Micro-Grid Deployment in Sub-Saharan Africa: Review and Recent Trends

This article reviews trends for micro-grid tariffs in Sub-Saharan Africa from two perspectives: guidelines for setting tariffs and methods for structuring tariffs. Different approaches are briefly described, and general benefits and drawbacks presented based on recent experiences and available literature. The pace of micro-grid deployment has suffered from a lack of private sector investment, which is often inhibited by unfavorable policies and uncertainty around tariffs. Traditional utility tariffs are too low to allow micro-grid investors to recover their full costs, but a variety of new approaches can be applied to address these challenges. Broad consensus suggests that cost-reflective tariffs are a critical enabler for micro-grid scale-up. Such tariffs can be coupled with subsidies or with hybridized approaches as well as unique new methods of tapping alternative revenue streams to maintain affordability for low-income customers and financial sustainability for micro-grids. There is no one-size-fits-all approach so long as lifetime costs can be recouped.

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DOE OSTI2018

Customer Agreement Considerations for Micro-Grids in Sub-Saharan Africa

Micro-grid deployment at a large scale will be necessary for achieving ambitious national and international electrification goals and reaching communities for whom grid extension is prohibitively expensive. The micro-grid industry is growing to fill this need, but barriers remain to reaching scale with sustainable, bankable business models. An important step along the way to industry maturation is creating customer agreements that serve as a foundation for a healthy, long-term relationship between developers, operators, and the communities their micro-grids serve. In addition to directly setting clear expectations with customers, a strong customer agreement can be a valuable tool for prospective funders, system sizing discussions, and customer retention. This report covers considerations for customer agreement design and content, and is intended to serve as a resource for micro-grid developers seeking to develop or re-design customer agreements to support growth and help achieve scale.

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DOE OSTI2020

Performance Monitoring of African Micro-Grids: Good Practices and Operational Data

This report investigates the current understanding and use of performance monitoring in the micro-grid sector by developers. It highlights the importance of performance monitoring by providing key performance monitoring indicators and suggesting performance monitoring activities that improve projects and programs. This report also presents the analysis of the performance data of 36 micro-grids currently operating in Africa, in one of the largest such assessments conducted to date within the sector and concludes by recommending potential next steps towards integrating performance monitoring into the micro-grid sector.

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