Evolving the Traditional Utility Business Model: From Centralized to Off-Grid Mini-Grids -- Not So Different

Tuesday, September 5, 2017 | 10:45 - 12:00

A mini-grid being a (very) small centralized system, a lot of similarities exist between a traditional centralized system and a mini-grid in terms of generation planning and demand management. Setting aside differences between Low/Medium voltage and High voltage, these similarities concern topics such as long term planning, optimization, and need of forecasting demand and cost evolution.

Regarding system reliability and security of supply, the same concepts apply as for centralized European systems, even if the value of energy not served might be very different, as well as the level of reserve margins needed to compensate for the decrease of inertia inherent to smaller systems.

On optimal planning and sizing, questions of "decentralized within the decentralized" arise in the design of mini-grids regarding the optimal mix between individual solar home systems and the local, centralized mini-grid within a village. Similarly, optimizing both technically and economically the injection on the mini-grid from existing assets such as telecom towers, diesel generators or SHS can benefit from lessons learned from the centralized grid in terms of net metering, feed in tariffs, etc.

Last but not least, demand side management within a mini-grid through sales of connected appliances, customer education and Time of Use tariffs could lead to demand profiles quite elastic (more than in Europe) and could trigger significant Capex and Opex reductions.

The extensive experience and knowledge of energy companies like ENGIE on centralized, more traditional energy systems can be widely re-used if correctly adapted in order to avoid re-inventing the wheel and to leverage best practices, tools and methodologies. This is necessary to achieve the substantial cost reductions needed to make the mini-grid business a profitable one.

    Financing Rural Microgrids
    Irene Calvé Saborit
    Business Development Manager
    ENGIE - PowerCorner

    Irene is working in ENGIE's PowerCorner initiative as Business Development Manager. Power Corner is ENGIE's start-up aiming to develop sustainable mini-grids and act as a micro-utility to provide electricity access in rural Africa. Prior to her current position, Irene was working in ENGIE's strategy department within the center of expertise in economic modelling and studies, in charge of Latin American countries, Iberia and the Nordic region. Her expertise lies in market modelling and market fundamentals as well as decentralized generation with a special focus on energy access. She holds a double degree including a Master of Science (MSc) of Sustainable energy, from the Denmark Technical University and the title of Ingeniero Industrial from the Universidad Politécnica de Valencia.