Scaling Up Mini-Grids:

Lessons & Opportunities for Solar PV in Myanmar

ADB Off-Grid Renewable Energy

Investor Forum
21 March, 2014

Andy Schroeter, CEO

Sunlabob Renewable Energy, Ltd.
andy.schroeter@sunlabob.com
 About Sunlabob
Founded in Laos in 2000, expert in off-grid energy and clean
water solutions
Solar PV, mini-hydropower
Village grids, SHS, lanterns, water pumping/purification

Internationally-focused: throughout ASEAN, Pacific islands,

Africa, India

Approach to longevity: high-quality technology paired with

local training and capacity building

B-to-B, B-to-G and B-to-C customer bases: international

donor agencies, governments, NGOs, private sector, rural end-
users
 Sunlabob Mini-Grid Experience
A variety of mini-grid and solar plant experiences:
Different countries, cultures, geographies
Laos, Sierra Leone, Mozambique, Kiribati

Different operational models

IPP model
Donor-funded, community-based

Different revenue streams

PPA with utility or industrial customer
Lease-to-own with EPCs
Upfront payment, handover to village
 Mini-Grid Profile: Houaypha, Laos
Situation
Ban Houaypha, rural village in Luang Prabang Province
42 km from nearest grid connection
83 households, 498 people
$41.50 average household monthly income ($1.38/day)

Solution: Solar PV village grid

2kWh 20kWh provision
$1.25 $3.75 monthly options

Local Training and O&M

VETs, VEC, maintenance fund

Only possible w/ donor funding

 Mini-Grid Profile: Nam Kha, Laos
Situation
Remote area of Xieng Khaung Province, Laos
Boosting existing hybrid mini-grid with additional hydro plant
(Nam Kha II)
Reaching ~650 households
Combined for 200 kW provision

Model
Sunlabob as IPP
PPP with Gov. of Laos, AusAid, Helvetas
Laos first negotiated private FIT for RE

Local Training and O&M

VETs trained to manage system
 Mini-Grid Profile: Sierra Leone
Situation
Pujehun, Sierrra Leone, 200 km away from central grid
60 kW solar mini-grid powering 6 buildings at community
training center

Model
Donor-funded, end-users dont pay
System gifted to community
Sunlabob earns upfront revenue

Local training
Sunlabob engineers trained locals
for O&M
 Mini-Grids: Lessons Learned
Thorough and comprehensive planning:
Understand load profile and future demand growth
Survey population density
Establish viable tariff levels
o Ability to pay
o Willingness to pay
o Competitive with electrified communities?
Realistic tariff payment mechanism
Manage end-users expectation of load limits
Low-quality technology only sets you up for failure
Align with govt central grid expansion planning
 Mini-Grids: Lessons Learned
Sustainable operational model:
Local training for O&M and revenue collection
Safeguarding of overuse and/or theft
Incentivize longevity through local employment and local
governance (Village Energy Technicians & Committees)
Maintenance/repair cost recovery through tariff payments

Additional factors:
Can the system accommodate income-generating
activities rice mills, fridges, power tools?
Is there an opportunity to coordinate with other
development efforts?
 Mini-Grids: Lessons Learned
Many pieces to a complex puzzle.

UN Foundation, Microgrids for Rural Electrification, Schnitzer,

Lounsbury, et al. 2014.
Applying Mini-Grids Lessons in Myanmar
Knowing Myanmars situation, what are the best
approaches to consider?
70-75% of country without electricity
40 million+ people living in rural areas
$0.40$0.60/kWh not uncommon in off-grid areas
Threats of increasing electricity rates
12% rise in electricity demand per year
Emerging Electricity Law, yet still many unclear regulations
and frameworks
How to scale up a commercially-viable approach
that enables long-term, quality energy provision?
 Brownfield Diesel Mini-grid Retrofits
Existing private mini-grid operators:
o 14,000+ villages with off-grid electricity
Market approach already in place; ripe
for more reliable energy, better prices
Solar PV replaces substantial amount of
petrol use
o Cost-savings over time
o Easier maintenance
o Cleaner and safer

Need to establish financing

Overcome operators fear of upfront cost
Educate about reliability and longevity of
solar solutions
 Dawei Diesel-Solar PV Hybrid Spotlight
22 kWp diesel generator retrofitted with solar PV
o 2500 Ah/48 V OPzS Battery, 3 x 5048 Sunny Island
Installment payments lease to own
Displacing 250,000 liters of diesel over 20 years (~ 8 gallons / day)
~$250,00 USD over 20 years at current price (1000 kyat/liter)
Projected 5-year payback period
 The Energy Hub Concept:
Telecom Tower--Village Power
The basics
Towers provide anchor power demand and revenue stream
to ESCO; ESCO sells excess energy to off-grid community

Energy Hub acts as central charging and service station

energy access for: Image source: GSMA 2010 Green Power for Mobile

1) Transportable services: Image source: GSMA 2010 Green Power for Mobile
mobile phone charging
transportable batteries
solar lantern charging

2) Hub-based services:
refrigerator/cooling
rice milling and power tools
community entertainment
 Combining Strengths:
Sunlabob and Relitec Energy

15+ years experience with off-grid, Myanmar-based, local knowledge

rural electrification
Pioneering community-based
approaches and operational models
Rural capacity-building and training
International footprint throughout
developing world
Significant supply chain and logistical
expertise
15+ years of telecom industry
experience
Renewable energy engineering
expertise
Currently providing solar services to
telco sector in Myanmar
 Combining Strengths:
Sunlabob and Relitec Energy

Relitec currently
working with Myanmar
Post &
Telecommunications
(MPT)

Retrofitting and
optimizing solar PV for
off-grid base transceiver
stations

Picture: 10 kW solar PV
 Who Benefits, and How
Tower Companies and Operators
Reduce OPEX Reliable energy supply
Fossil fuel pricing risks
Reduced logistical constraints
reduced

Expand potential customer base Catalyst of rural development

Opportunity to pilot other

Improve in-country reputation
mobile services

Rural Communities and Governments

Access to reliable, affordable
Employment opportunities
electricity
Improved education and
Access to mobile services
health opportunities
Improved local economy Community development
 Off-Grid Business Opportunity:
Telecom Tower--Village Power
15,000+ telco towers (many off-grid) needed to support Myanmar
telecom growth

Tower OPEX can increase 50-100% when moving into off-grid areas**

Solar PVdiesel hybrid generation is lowest cost of ownership*

Telcos needs rural community buy-in and reputation/brand building

**Data source: GSMA 2010 Green

Power for Mobile
*Image source: Saviva Research
Telco Energy Research
 Next Steps:
Telecom Tower--Village Power
Introduce concept to
stakeholders
ESCO
Convene
stakeholders and
secure commitment Tower Operator
Cos
Continue risk
Pilot
assessment System
Launch 1-3 pilots to
validate model, refine
Community Government
sizing, pricing, etc.
 Enabling Factors: Off-Grid Solar
Increase awareness and understanding amongst
policymakers, potential anchor clients, consumers
o Shift away from bias to conventional technologies

Comprehensive, transparent regulatory frameworks

o Clear framework for pricing and permitting process
o Easing of FDI

Partnership with industry, government, development

community and other private sector players to de-risk
investments
 Scaling Up Mini-Grids:
Lessons & Opportunities for Solar PV in Myanmar

Thank
Andy Schroeter
CEO
andy.schroeter@sunlabob.com

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