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MICRO POWER ECONOMY RISK MANAGEMENT IN MINI-GRID POWER SUPPLY

MICRO POWER ECONOMY

RISK MANAGEMENT IN MINI-GRID POWER SUPPLY
-----DIPL.-ING. NICO PETERSCHMIDT MANAGING DIRECTOR INENSUS GMBH

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MICRO POWER ECONOMY RISK MANAGEMENT IN MINI-GRID POWER SUPPLY

AGENDA

01 Walking down the economies of scale curve 02 The MicroPowerEconomy Model

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DIPL.-ING. NICO PETERSCHMIDT MANAGING DIRECTOR INENSUS GMBH

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MICRO POWER ECONOMY RISK MANAGEMENT IN MINI-GRID POWER SUPPLY

WALKING DOWN THE ECONOMIES OF SCALE CURVE

Foto: INENSUS West Africa power station

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MICRO POWER ECONOMY RISK MANAGEMENT IN MINI-GRID POWER SUPPLY

SMALLER GRIDS DIFFERENT CHALLENGES

Economies of scale effects

National and large/medium private utilities in main-grids Cooperatives and small utilities

Mini-Utility sector Micro-utility sector Inofficial sector

Husk Power Systems

Power Source Group

INENSUS

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DIPL.-ING. NICO PETERSCHMIDT MANAGING DIRECTOR INENSUS GMBH

1,000,000,000 kWh/year

10,000,000 kWh/year

10,000 kWh/year

100,000 kWh/year

1,000,000 kWh/year

100,000,000 kWh/year

Sales per site (logarithmic axis)

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MICRO POWER ECONOMY RISK MANAGEMENT IN MINI-GRID POWER SUPPLY

SMALLER GRIDS DIFFERENT CHALLENGES

Decreasing economies of scale effects means increasing challenges in: 1. Technical system stability due to higher concurrency 2. Prevention of conflicts arising due to intransparent community decision making structures

3. Revenue stabilization due to less divers income sources of customers

4. Increasing operation and transaction costs per kWh produced require new management approaches

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DIPL.-ING. NICO PETERSCHMIDT MANAGING DIRECTOR INENSUS GMBH

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MICRO POWER ECONOMY RISK MANAGEMENT IN MINI-GRID POWER SUPPLY

THE MICRO POWER ECONOMY BUSINESS MODEL

Foto: INENSUS West Africa connects new customers

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MICRO POWER ECONOMY RISK MANAGEMENT IN MINI-GRID POWER SUPPLY

COMPONENT 1: CONSTELLATION OF STAKEHOLDERS

Regulatory Authority

Electrification Authority

Donor Organisation

National grid operator

Subsidies used to set-up the Mini-Grid Micro-Finance Institution

Rural Citizen
Contract

Investor

Power Station Operator

owns movable assets

Village Power Committee

owns fixed assets

Local Electrician

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DIPL.-ING. NICO PETERSCHMIDT MANAGING DIRECTOR INENSUS GMBH

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MICRO POWER ECONOMY RISK MANAGEMENT IN MINI-GRID POWER SUPPLY

COMPONENT 2: TARIFFS AND BILLING

Electricity block: max. power 50 W; weekly energy 2 kWh for 0.90 Power

Extra Power 0.7 /kWh

Extra Energy 0.7 /kWh

combined electricity blocks

Time
-----DIPL.-ING. NICO PETERSCHMIDT MANAGING DIRECTOR INENSUS GMBH

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MICRO POWER ECONOMY RISK MANAGEMENT IN MINI-GRID POWER SUPPLY

COMPONENT 2: TARIFFS AND BILLING

kWh
Electricity blocks ordered after 6 months
Electr. user 2

To be made available by power station operator

Electr. user 1

Electr. user 3

Electr. user 4

Electr. user 5

New blocks

Number of electricity blocks ordered can be increased or decreased every six months Electricity blocks can be traded between rural citizens
-----DIPL.-ING. NICO PETERSCHMIDT MANAGING DIRECTOR INENSUS GMBH

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MICRO POWER ECONOMY RISK MANAGEMENT IN MINI-GRID POWER SUPPLY

COMPONENT 3: THE MICRO UTILITY SOLUTION

_ The Micro Power Smart

Meter

_ The Micro Grid Control and Accounting Centre

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DIPL.-ING. NICO PETERSCHMIDT MANAGING DIRECTOR INENSUS GMBH

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MICRO POWER ECONOMY RISK MANAGEMENT IN MINI-GRID POWER SUPPLY

MicroPowerEconomy means development options for rural citizens and attractive profits for investors!

INENSUS GmbH Am Stollen 19D 38640 Goslar Germany

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www.inensus.com Tel +49 (5321) 38271 0 Fax +49 (5321) 38271 99

DIPL.-ING. NICO PETERSCHMIDT MANAGING DIRECTOR INENSUS GMBH