Tag Archives: power grid

Mini-Green Grids

image from http://www.nigeriaelectricityhub.com/2017/12/11/legal-framework-for-mini-grids-power-generation-and-distribution-in-nigeria/

A forested village in Jharkhand state, eastern India, Narotoli is home mainly to adherents of Sarna, a nature-worshipping tribal religion. In more ways than one, it has long been off-grid… In 2018, it became one of the last in India to benefit from a push by Narendra Modi, the prime minister, to supply electricity to all the country’s villages. But the national power lines are so “reliably unreliable”, says an Indian executive, that they might as well be washing lines.

In 2016, before the national grid arrived, however, Mlinda, a social enterprise, had set up a “mini-grid”, a bank of batteries charged by solar panels and hooked up to homes, to guarantee round-the-clock power independent of the national network.  The power generated by the plant is expensive (though it costs less than villagers often pay for alternatives such as kerosene for lighting and diesel for irrigation pumps). The worry is that demand for electricity may not be enough to justify the installation cost. …But Mlinda and other mini-grid installers see them as more than a way to satisfy existing demand for electricity: they are a way to catalyse development. The installers advise villagers on irrigation, farming and marketing to help them develop businesses that require reliable electricity, which in turn justifies the expense of installation.

Vijay Bhaskar of Mlinda says a big mistake in development has been to assume that, once people are hooked up to electricity, businesses will automatically flourish. People have to be taught how to make the most of power, he says. “Bringing energy is the easy part. The hard part is finding productive ways to make use of it.”  According to one British expert, “mini-grid operators are not sellers of kilowatt-hours; they are stimulators of rural development.” Jaideep Mukherjee, the boss of Smart Power India, an NGO supported by the Rockefeller Foundation, says their job is to “demonstrate the benefits, train and then propagate”.

An independent study for Mlinda found that GDP per person in eight villages with mini-grids rose by 10.6% on average over the first 13 months, compared with 4.6% in a group of similar villages without them.  Mini-grids are being set up at the rate of just 100 or so a year, from Myanmar to Mozambique. But the International Energy Agency (IEA), a forecaster, says hundreds of thousands of them could connect 440m people by 2030, with the right policies and about $300bn of investment.

African countries used to focus almost exclusively on expanding national electricity networks. Now some, including Nigeria and Togo, have started to prioritise mini-grids. ..

Most mini-grids are green, unlike diesel, kerosene and coal- and gas-fired electricity. That is a welcome feature, though not the main aim, since the contribution of places like Narotoli to global warming is minuscule.

Excerpts from Mini-girds and development: Empowering Villages, Economist, July 14, 2018, at 61

The Power of a Battery: distributed energy


Who needs the power grid when you can generate and store your own electricity cheaply and reliably? Such a world is drawing nearer: good news for consumers, but a potential shock for utility companies. That is the conclusion of a report this week by Morgan Stanley, an investment bank, which predicts that ever-cheaper solar and other renewable-energy sources, combined with better and more plentiful batteries, will allow many businesses and other electricity users to cut the cord on their electricity providers.

Tesla Motors, an American maker of electric cars, recently said it will build a “gigafactory”, which by 2020 will turn out as many lithium-ion batteries as the whole world produced last year (2013). These batteries can do more than power cars; they can also store electricity which is produced when it is not needed, and discharge it when it is….

In poor, volt-starved countries, a lorry-mounted aircraft engine can become a mobile gas-fired power station. GE recently installed 24 such units in Algeria, providing 30MW of power. Local difficulties meant it took six months; that was fast by the standards of big power stations, “but we could have done it in ten days,” says Lorraine Bolsinger, who heads GE’s new distributed-generation business….

Morgan Stanley reckons that if Tesla’s factory provides the cheap batteries it promises, Californian households will be able to run off a solar-plus-storage system costing just $350 a year. Buying electricity off the grid may cost them around $750 a year by then.

Morningstar, an investment-research firm, says that though distributed generation represents only 1% of America’s installed capacity now (compared with 20% in Germany), it could make up a third by 2017 and could “kill” utilities in their current form. Small-scale producers will dump their surplus power on the market at prices below those at which the utilities can recoup their cost of capital—and thus pay to maintain the grid.

America’s Electric Power Research Institute last month produced a paper highlighting the dangers of an unplanned move to distributed generation, using Germany as an example. The dash for renewables there has strained the power network and made life hard for utilities. This week one of the country’s largest, RWE, announced that it made a net loss of €2.8 billion ($3.8 billion) in 2013, its first annual loss in more than 60 years, as the rising supply of electricity from (subsidised) renewable sources undercut its prices.

Distributed generation: Devolving power, Economist,  Mar. 8, 2014, at 69