Tag Archives: electricity grid

Africa’s Single Electricity Market: Pools and Mini-Grids

Given this the magnitude of the energy access problem in Africa, a continent-wide risk-guarantee scheme should be established, ideally by a combination of African and other multilateral lending institutions. Such an integrated approach, through which overall savings can outweigh risk premia  could be articulated under the aegis of the African Single Electricity Market, launched in early February 2021 with the main goal of harmonizing regulatory and technical aspects of electricity generation, transmission, and distribution across the continent…

Most electricity projects in Africa are undertaken by foreign developers, notably European, Chinese, and United States companies, owing to their experience and, especially, their ability to secure financing. As a result, African governments have introduced different types of so-called local-content requirements, namely obligations concerning local employment, procurement of local goods and services, and the transfer of technologies and know-how, to which foreign investors have to abide. In countries such as Kenya and Nigeria, these requirements are defined through quantitative targets, whereas in other countries, such as Uganda and Zambia, they take the form of qualitative goals….

Power pooling, through cross-border trade in electric power, helps reduce electricity bills and enhances the reliability of electricity supply. Regional power pools, based increasingly on renewable energy supplies, are now possible across most of the African continent. Nonetheless, additional efforts are needed to reap the full benefits of power pooling….

South Africa is the main electricity producer for the Southern African power pool, facilitated by the Southern African Development Community (SADC). Given the challenges that the country is increasingly facing to meet its domestic demand for electricity, and the sharp decreases in cost of solar, wind, and energy storage, the case for relying on solar and wind energy–powered electricity generation becomes stronger in the region. Yet, at present, for both renewable energy and electric-power transmission, many of the investment discussions in the SADC region focus on large dams, which have been the technology of choice for decades. Concentrating solar power, a technology that generates electricity from the heat obtained by concentrating solar energy (in contrast to converting solar energy directly into electricity, as photovoltaic systems do), is already being deployed in South Africa…. Concentrating solar power technology can help shift the balance away from hydropower and toward solar energy, but only to the extent that stronger financial incentives are in place, compared to those introduced thus far…

To date, the members of the Maghreb Electricity Committee (COMELEC), Northern Africa’s power pool, have only engaged in cross-border trade with the Iberian Peninsula, across the Mediterranean Sea (Spain currently exports electricity to Morocco). As concentrating solar power in Morocco develops, the country plans to export electricity to Spain and possibly Portugal. Tunisia and Egypt are planning similar export arrangements (with Italy and Greece, respectively). Against this background, COMELEC has pledged to launch, in 2025, a common electricity market for its five members…

Both the Eastern Africa Power Pool (EAPP) and the West African Power Pool (WAPP) originate from preexisting cross-border arrangements aimed at promoting cooperation on energy issues. In both regions, cooperation thus far has been limited to bilateral agreements, such as the lines linking Kenya with Ethiopia and Ghana with Burkina Faso….The Central African Power Pool (CAPP) remains underdeveloped. Poverty and other developmental challenges in the region limit the size of the electricity market, thus inflating prices.

In moderately populated areas, where both grid extension and deployment of a relatively large number of stand-alone electricity-generation systems would be prohibitively expensive, off-grid mini-grids are the most economical electrification option in most cases. The so-called third-generation minigrids, which combine photovoltaic solar systems and batteries with or without a back-up diesel-powered electricity generator, require less than 2 weeks of scheduled maintenance per year. Such a high level of reliability makes it possible to incentivize off-grid mini-grid deployment through performance-based subsidies.  For example, with World Bank backing, Nigeria’s rural electrification agency pays off-grid mini-grid developers US$ 350 per connection, provided that the customer has had a steady supply of power for at least 3 months. Similarly, the reliability of third-generation mini-grids allows developers to offer customers a contract that includes, in addition to the electricity connection, the option to purchase income-generating appliances, such as machines for welding, milling, and rice hulling, thus increasing deployment rates…

Overcoming the barriers to interconnected mini-grid development requires national governments to clarify licensing procedures and tariff regulations and ultimately establish unambiguous tariff levels for the various interconnection options, a set of tasks that can be facilitated by the International Renewable Energy Agency….

Excerpts from Daniel Puig et al., An Action Agenda for Africa’s Electricity Sector, Science, Aug. 6, 2021

The Nightmare of Keeping the Lights On

Some 330 million Americans rely on the nation’s critical infrastructure to keep the country humming. Disruptions to electrical grids, communications systems, and supply chains can be catastrophic, yet all of these are vulnerable to cyberattack. According to the government’s 2019 World Wide Threats Hearing, certain adversaries are capable of launching cyberattacks that can disrupt the nation’s critical infrastructure – including electrical distribution networks.

In recognition of the disruptions cyberattacks can cause, DARPA in 2016 established the Rapid Attack Detection, Isolation and Characterization Systems (RADICS) program. The goal of RADICS has been to enable black-start recovery during a cyberattack. Black start is the process of restoring power to an electric substation or part of the grid that has experienced a total or partial shutdown without relying on an external power transmission network to get things back online…

“Cyberattacks on the grid can essentially do two things – make the grid not tell you the truth, and make the grid operate in an unexpected way,” said Walter Weiss, the program manager responsible for RADICS. “For example, the grid could show you that a substation has power when in reality it does not. This could unintentionally prevent power restoration to an entire area since no one thinks there is a need to bring power back online. The technologies developed under RADICS help provide ground truth around grid status, giving responders the ability to quickly detect anomalies and then chart a path towards recovery.”…

 The RADICS testbed is comprised of miniaturized substations that were designed to operate as they do in the real world, but with safeguards to protect the system and those operating the substations. The substations are connected via power lines, forming a multi-utility crank path. With a crank path, power is generated to black start one utility that then powers the next utility and the next until the grid is fully restored.

DARPA substation, Plum island NY

Technologies to Rapidly Restore the Electrical Grid after Cyberattack Come Online, DARPA Website, Feb. 23, 2021

Mini-Green Grids

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

Drones for Renewable Energy

Utilities in Europe are looking to long-distance drones to scour thousands of miles of grids for damage and leaks in an attempt to avoid network failures that cost them billions of dollars a year. w altitudes over pipelines and power lines….Italy’s Snam, Europe’s biggest gas utility, told Reuters it is trialing one of these machines – known as BVLOS drones (Beyond Visual Line of Sight) because they fly ‘beyond the visual line of sight’ of operators – in the Apennine hills around Genoa. It hopes to have it scouting a 20 km stretch of pipeline soon.

France’s RTE has also tested a long-distance drone, which flew about 50 km inspecting transmission lines and sent back data that allowed technicians to virtually model a section of the grid. The company said it would invest 4.8 million euros ($5.6 million) on drone technology over the next two years.

At present, power companies largely use helicopters equipped with cameras to inspect their networks. They have also recently started occasionally using more basic drones that stay within sight of controllers and have a range of only about 500 meters.  However an industry-wide shift toward renewable energy, and the need to monitor the myriad extra connections needed to link solar and wind parks to grids, is forcing utilities to look at the advanced technology.  “It’s a real game changer,” Michal Mazur, partner at consultancy PwC, said of drones. “They’re 100 times faster than manual measurement, more accurate than helicopters and, with AI devices on board, could soon be able to fix problems.”

In-sight drones cost around 20,000 euros each and BVLOS ones will cost significantly more, according to executives at tech companies that make the machines for utilities, and a fleet of dozens if not hundreds would be needed to monitor a network.

Power grid companies are expected to spend over $13 billion a year on drones and robotics by 2026 globally, from about $2 billion now, according to Navigant Research.  But that is still dwarfed by the amount of money the sector loses every year because of network failures and forced shutdowns – about $170 billion, according to PwC…

BVLOS drone flights are largely prohibited because of safety concerns. However over the past year European watchdogs have for the first time granted special permits to allow utilities – namely RTE and Snam – to test prototypes. it…Xcel Energy (XEL.O) in April  2018 became the first American utility to gain approval for BVLOS flights.

Excerpts from Power to the drones: utilities place bets on robots, Reuters, July 16, 2018

The Power of Batteries and Micro-Grids

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