The Frankfurt School – UNEP Collaborating Centre for Climate & Sustainable Energy Finance has published a new study about economic benefits of hybridising diesel-powered electricity grids with solar photovoltaic (PV). In areas distant from main power grids, regional isolated grids – often referred to as mini-grids – are often the main source of electricity to industry and households. Power generation usually relies on diesel fuel, often imported over long distances. Yet generating costs can be reduced by hybridising these grids with PV or other renewable power sources.
On the basis of seven case studies in as many countries, this study finds that financing costs for a hybridisation project can be a major driver of electricity generation costs. Amongst other things, financing costs largely depend on the ownership structure of the power plant. “Relatively low ‘public sector’ return expectations can be assumed if the project is financed on the balance-sheet of a state-owned utility, and on concessional debt terms.
In this case, hybridisation could achieve significant cost reductions at all seven sites” says Torsten Becker, co-author of the study. However, assuming private sector return expectation – as possibly occurring if the hybrid is realised by an independent power producer (IPP) under a project finance structure – cost savings at six of seven sites would be insignificant or even negative.
Consequently, as Frankfurt School’s President Udo Steffens points out: “The analysis contributes to the very topical discussions on the affordability of climate change mitigation, and the challenges in crowding-in the private sector. It is part of our endeavour to advocate green energy without neglecting market realities and real economic costs.”
Diesel-powered grids can be hybridised using different types of system-integration technologies and renewable energy sources. This analysis compares diesel plants to a ‘100-percent-peak PV penetration’ hybrid technology, with which existing diesel generators can be switched off during peak availability of solar radiation.
The focus on this technology, however, is illustrative only, and does not imply its general advantage compared to other hybrid technologies (likewise, solar PV was selected as only one of several options for hybridisation).
Find the full Study online: “Renewable Energy in Hybrid Mini-Grids and Isolated Grids: Economic Benefits and Business Cases”.
Call for comments: The FS-UNEP Centre welcomes any feedback on the approach and results of this analysis. In particular, providers of other technologies are invited to get in touch with the Centre for a possible follow-up analysis of alternative hybrid solutions.
The Frankfurt School – UNEP Collaborating Centre for Climate & Sustainable Energy Finance is a strategic cooperation between Frankfurt School of Finance & Management and the United Nations Environment Programme (UNEP). It is committed to facilitating the necessary structural change of energy supply and use around the globe by helping to catalyse private sector capital flows towards investments in sustainable energy, climate change mitigation and adaptation. The hybrid study was furthermore supported by the International Renewable Energy Agency (IRENA) and Siemens AG.
About Frankfurt School of Finance & Management
Frankfurt School of Finance & Management is a research-led business school that is accredited by EQUIS and AACSB International. Frankfurt School offers educational programmes covering a wide variety of financial, economic and management subjects, including Bachelor’s and Master’s degree courses, a doctoral programme, executive education programmes, certification programmes, open seminars and training courses for professionals, and seminars and workshops for corporate and vocational trainees. In their research, Frankfurt School faculty members address topical issues in business, management, banking and finance. Furthermore, Frankfurt School experts manage advisory and training projects covering financial disciplines in emerging markets and developing countries, with particular focus on topics relating to microfinance and finance for energy from renewable sources. Frankfurt School’s Master of Finance programme is the only Master of Finance degree taught by a German business school to feature in the current Financial Times ranking (at number 20 in June 2014). In the Handelsblatt ranking published in December 2014, which rated the research credentials of German-language business studies lecturers and faculties, the Frankfurt School faculty took fifth place in Germany; several Frankfurt School professors were also awarded high individual rankings. In addition to the business school’s main campus in Frankfurt, Frankfurt School operates study centres in Hamburg and Munich, as well as international offices in Istanbul (Turkey), Dushanbe (Tajikistan), Beijing (China), Pune (India) and Nairobi (Kenya). Frankfurt School is a globally networked business school working with nearly 100 partner universities.
For more details, visit www.frankfurt-school.de
Angelika Werner | idw - Informationsdienst Wissenschaft
Diagnoses: When Are Several Opinions Better Than One?
19.07.2016 | Max-Planck-Institut für Bildungsforschung
High in calories and low in nutrients when adolescents share pictures of food online
07.04.2016 | University of Gothenburg
Ultrafast lasers have introduced new possibilities in engraving ultrafine structures, and scientists are now also investigating how to use them to etch microstructures into thin glass. There are possible applications in analytics (lab on a chip) and especially in electronics and the consumer sector, where great interest has been shown.
This new method was born of a surprising phenomenon: irradiating glass in a particular way with an ultrafast laser has the effect of making the glass up to a...
Terahertz excitation of selected crystal vibrations leads to an effective magnetic field that drives coherent spin motion
Controlling functional properties by light is one of the grand goals in modern condensed matter physics and materials science. A new study now demonstrates how...
Researchers from the Institute for Quantum Computing (IQC) at the University of Waterloo led the development of a new extensible wiring technique capable of controlling superconducting quantum bits, representing a significant step towards to the realization of a scalable quantum computer.
"The quantum socket is a wiring method that uses three-dimensional wires based on spring-loaded pins to address individual qubits," said Jeremy Béjanin, a PhD...
In a paper in Scientific Reports, a research team at Worcester Polytechnic Institute describes a novel light-activated phenomenon that could become the basis for applications as diverse as microscopic robotic grippers and more efficient solar cells.
A research team at Worcester Polytechnic Institute (WPI) has developed a revolutionary, light-activated semiconductor nanocomposite material that can be used...
By forcefully embedding two silicon atoms in a diamond matrix, Sandia researchers have demonstrated for the first time on a single chip all the components needed to create a quantum bridge to link quantum computers together.
"People have already built small quantum computers," says Sandia researcher Ryan Camacho. "Maybe the first useful one won't be a single giant quantum computer...
14.10.2016 | Event News
14.10.2016 | Event News
12.10.2016 | Event News
27.10.2016 | Materials Sciences
27.10.2016 | Physics and Astronomy
27.10.2016 | Life Sciences