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Solar PV hybrid brings light to East Indonesia
With a population of more than 252 million spread across 17,508 islands, Indonesia scores 89
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ith a population of more than 252 million spread across 17,508 islands, Indonesia scores 89.5 percent for its electrification ratio. Official data reveal that more than 26 million people living in 10,300 villages, which are situated in small islands and remote regions, do not have access to electricity.
Building transmission lines from the existing, mostly fossil fuel, large power generators to those areas is expensive for state power producer PLN.
A smarter, more flexible system that maximizes the use of renewable energy and accommodates decentralized and community-based generation is easier and faster to set up. Moreover, it is also a healthier, more secure and climate-friendly for the future than conventional methods.
Come solar photovoltaic (PV), which converts sunlight directly into electricity. PV gets its name from the process of converting light (photons) to electricity (voltage), which is called the PV effect. Solar PV power is already the most widely owned electricity source in the world in terms of number of installations and its uptake is accelerating. In only five years, its global installed capacity has grown from 40 to 227 gigawatts (GW).
On a global level, the weighted average levelized cost of electricity (LCOE) for utility-scale solar PV was 0.13 US cent per kilowatt-hour (kWh) in 2015.
In comparison, electricity production from coal and gas-fired power station was in the range of 0.05 to 0.10 US cent/kWh.
By 2025, the global weighted average LCOE of solar PV could fall by 59 percent with the right enabling policies. That would make solar PV the cheapest form of power generation in an increasing number of cases.
To note, dispatchable renewable energy (i.e. biomass, hydro and geothermal) can generate electricity 24 hours a day. Non-dispatchable or variable renewable energy (i.e. solar PV and wind) is intermittent and its generation depends on meteorological conditions.
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The technology for high-level penetration of solar PV into a grid has matured and is now feasible.
Since large energy storage system (ESS) technologies are still very expensive, solar PV should adopt a hybrid mode with dispatchable renewable energy, gas or even diesel, to be able to provide reliable electricity all day.
A cost-optimized system operation and grid stability at all times are the key functions of such a system. In the future, global electrical power grids will be supplied by a combination of centralized and decentralized hybrid power generation systems.
Solar PV penetration is the ratio between nominal PV power and nominal genset power (running at the same time). For example, penetration of 25 percent means that for each 4 megawatts (MW) of installed diesel genset capacity, 1 MW of solar PV can be added. Ordinarily, high penetration of solar PV requires a hybrid controller system.
Unlike a few years ago, the technology now for high-level penetration of solar PV into a grid has matured and is feasible, without adversely affecting the safety, reliability and power quality of PLN’s power system. Solar PV-diesel hybrid power generation is in many cases the most economical solution for island electrification, with the LCOE lower than a stand-alone diesel generator. Moreover, solar PV avoids the burden of transporting fuel over long distances.
For example, as of today in East Nusa Tenggara (NTT), total nominal diesel genset power by PLN during the daytime is 91 MW. At a 50 percent solar PV penetration rate, an aggregate of 45.3 MW will be achieved, with an investment of around Rp 1 billion.
Annually, around 33,266 kiloliters, out of total 133,066 kiloliters of diesel fuel consumption will be saved, and 89,154 metric tons CO2 in GHG emissions reduced. At Rp 6,400 (48 US cents)/liter of diesel fuel, Rp 212.9 billion in fuel costs will be saved.
Indonesia has announced a carbon emission reduction target of 29 percent (on its own) and 41 percent (with assistance) by 2030 from the baseline scenario. PLN has the opportunity to lower many of its diesel-based grids’ LCOE while contributing to Indonesia’s greenhouse gas reduction target.
For off-grid situations on the outer islands or remote areas, the fastest, cost-efficient and sustainable way to electrify is that if independent power producers (IPP) install solar PV for daytime use wherever the daily solar radiation is greater than 4 kWh/m2/day (almost everywhere in Indonesia). If the wind is strong enough, wind turbines can be added.
For all-day reliability, dispatchable renewables such as mini-hydro and/or biomass should be used wherever possible. If not yet available, or in waiting for their development, natural gas or diesel-fueled generators can be used.
Whenever possible, the power distribution network should still be built by PLN, with the company as the off taker. In the near future, when large ESS technologies are economically feasible for 24-hour electricity generation using solar PVs, only renewable hybrid-energy power plants should be used.
Accordingly, we would no longer need fossil fuels.
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The writer is a member of the Indonesian Chamber of Commerce and Industry (Kadin), Renewable Energy and Environment Department, founder and CEO of PT Arya Watala Capital, a solar PV diesel hybrid power plant developer. This article was part of his presentation at UNFCCC’s COP 22 Indonesia Pavilion, in Marrakech, Morocco, Wednesday.
