ALTERNATIVES to Traditional Grid solutions
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EPRI Insights | October 2023
Off-Grid solutions
operate independently
Off-grid alternatives refer to systems or solutions that allow individuals or communities to operate independently of the conventional power grid and other utility services. These systems usually include a combination of technologies, such as on-site solar photovoltaics (PV) and wind coupled with batteries, a charge controller, power conditioning equipment, safety equipment, and other instrumentation.
Off-grid energy systems can offer multiple opportunities
Energy Independence:
Provide communities or facilities with the ability to generate their own electricity independently of the central utility grid.
Zero-Carbon Generation:
Renewable energy sources contribute to a cleaner, more sustainable energy supply, helping to reduce greenhouse gas emissions, climate change impacts.
Rural Electrification:
Can provide electricity access where extending the central grid infrastructure is impractical, uneconomical.
Off-grid solutions require
additional costs
Operation and maintenance cost
A remote system requires a dedicated team for operational monitoring and regular maintenance to ensure load is met at all times and power quality is maintained.
Cost to maintain reliability
To increase the reliability of variable renewable energy (VRE), such as solar and wind, overbuilding of the system and its components is needed. This incurs additional cost in land and equipment sizing of all resources.
Load management
In an off-grid system, instantaneous maximum power demand needs to be tracked, and loads need to be categorized as critical or non-critical in order to address fixed and flexible loads.
Generator-based backup system
Most off-grid systems incorporate diesel, oil, or natural gas-based generators as dispatchable resources in case of low energy output from VRE resources. Additional costs include fuel costs for the backup generation and controls needed for ancillary services, such as black-start, voltage, and frequency support.
Global Use cases:
Isolated Energy systems
- Powered entirely by nearby hydroelectric plants and on-site wind turbines
- Designed for sustainability with renewable energy and natural cooling
- Provides colocation services to customers wanting a green, resilient data infrastructure
- Situated in a former underground mine in Norway
- Utilizes on-site wind turbines and geothermal energy for power and cooling needs
- Promotes sustainability by using local renewable resources
- Offers colocation services in a unique underground facility with green operations
- 900-kW wind turbine and a 2-MW diesel power plant
- Serves about 700 people in St. Mary's and two other remote villages
- Wind resource was added to reduce fuel dependency due to concern over fuel shipment (barge) limitations.
- Able to avoid a $5.3 million diesel cost
- 33 isolated power stations, with stand-alone electricity networks, that supply 39 communities too remote to connect to the national grid
- Residential PV, battery storage
- Improve service to Aboriginal and remote communities
- Reduce electricity costs, increase job opportunities
Green Mountain
Data Center
Stavanger, Norway
Lefdal Mine
Data Center
Norway
Ergon Isolated Networks Strategy 2030
Queensland, Australia
Wind-Powered Remote Location
St. Mary’s, Alaska
DER and district energy
in stand alone configurations
An on-site district energy system could be beneficial for off-grid facilities with multiple buildings that need heating, cooling, and power.
Off-grid DERs operate continuously to match demand. Their high efficiency minimizes costs and emissions; reliability is critical, but maintenance, fuel cells, and fossil-fuel-fired generator logistics an be expensive.
Off-grid distributed energy resources (DERs) enable facilities to operate independently, improving efficiency and emissions.
Opportunities
for utilities
hover TO REVEAL
Community model
Owns and operates a local solar storage system
Pay-as-you-go
Customers pay incrementally as they use the off-grid system
Micro-utilities
Separate subsidiary or spinoff for off-grid systems
Equipment sale
Sells solar systems, batteries, and backup generators directly to customers
Utility Business Model Trends
Original equipment manufacturer (OEM)
Intergrated contractor/build-own-operate model
Stand-alone grid operator
Alternatives:
Global Perspective
Leasing model coupled with tax subsidies
Emphsis on solar and offshore renewables
Mix of diesel and renewables on-site generation to improve grid reliability
Focus on solar
UNITED STATES
EUROPE
ASIA
AFRICA
CLICK TO REVEAL
CLICK TO REVEAL
Off-grid application:
FAst-Track Rural Electrification
SARES is a government-community partnership program to build a cost-effective grid and electrify remote areas.
Under this program in Sarawak, Malaysia, Sarawak Energy built an off-grid system that consists of stand-alone solar or micro hydro systems to overcome the challenge of extending the existing grid in a rugged landscape, dense forest, and winding rivers.
- Electrified 57 villages
- 3 kWh of reliable renewable energy to each household.
- Over 200 villages were identified for off-grid application
- Complete electrification target: 2025
The commissioning of 85 kW of solar power in Gbamu-Gbamu, Nigeria is an example of accelerated electrification in rural Africa.
The initiative reduces the financial burden on the government and serves the community with lower-cost electricity than the conventional grid.
- Serves 400 households
- 24-hour power supply ensures replacement of traditional kerosene lanterns
- Improves access to better street lighting and the internet, while enhancing business engagement
NIGERIA
MALAYSIA
Gbamu-Gbamu, Nigeria
Sarawak Alternative Rural Electrification Scheme (SARES)
Utility-owned
Off-grid solutions
Proposed off-grid connection enables PG&E to serve remote costumers, while minimizing wildfire ignition risk due to electrical equipment. The off-grid system will consist of a solar array, propane-based generator, and batteries to provide reliable power.
Pacific Gas and Electric Company (PG&E) offers off-grid or stand-alone system solutions to areas with a high-wildfire risk and low-density populations to reduce wildfire risk, improve reliability, and reduce public safety power shutoffs (PSPS) in these areas.
PG&E Remote Grid Program
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PG&E will apply the program to serve a small number of customers for which the program is less expensive than building conventional power lines through steep and dense forestation.