December 2017 | Conference Edition BENCHMARKING STUDY OF SOLAR PV MINI GRIDS INVESTMENT COSTS PRELIMINARY RESULTS ESMAP Mission The Energy Sector Management Assistance Program (ESMAP) is a global knowledge and technical assistance program administered by the World Bank. It provides analytical and advisory services to low- and middle-income countries to increase their know-how and institutional capacity to achieve environmentally sustainable energy solutions for poverty reduction and economic growth. ESMAP is funded by Australia, Austria, Denmark, the European Commission, Finland, France, Germany, Iceland, Italy, Japan, Lithuania, Luxemburg, the Netherlands, Norway, The Rockefeller Foundation, Sweden, Switzerland, and the United Kingdom, as well as the World Bank. Copyright © December 2017 The International Bank for Reconstruction and Development / THE WORLD BANK GROUP 1818 H Street, NW | Washington DC 20433 | USA Written by: Pol Arranz-Piera (Trama TecnoAmbiental - TTA) Energy Sector Management Assistance Program Cover Photo: ©The World Bank, Trama Tecnoambiental - TTA Energy Sector Management Assistance Program (ESMAP) reports are published to communicate the results of ESMAP’s work to the development community. Some sources cited in this report may be informal documents not readily available. The findings, interpretations, and conclusions expressed in this report are entirely those of the author(s) and should not be attributed in any manner to the World Bank, or its affiliated organizations, or to members of its board of executive directors for the countries they represent, or to ESMAP. 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All images remain the sole property of their source and may not be used for any purpose without written permission from the source. 2 | DRAFT NOVEMBER 2017 TABLE OF CONTENTS 1| INTRODUCTION ................................................................................................................................. 1 2| PV MINIGRIDS COST CATEGORY COMPONENTS ............................................................................... 3 2.1 Hard Cost category components .................................................................................................. 3 2.2 Soft cost Category Components ................................................................................................... 3 2.3 Level of electricity service supply ................................................................................................. 4 3| PV MINIGRID CASES ASSESSED ......................................................................................................... 5 4| OVERALL CAPEX and CAPEX per kW ................................................................................................. 7 5| CAPEX BREAKDOWN BY COST CATEGORY ...................................................................................... 11 6| CAPEX BREAKDOWN by EQUIPMENT ............................................................................................. 13 7| COST PER CUSTOMER (TIERED APPROACH).................................................................................... 16 8| EQUIPMENT SUPPLIERS .................................................................................................................. 18 List of Tables & Figures Table 1 Solar Minigrid Equipment and Supplies HARD Cost categories ........................................................................3 Table 2 Solar Minigrid Equipment and Supplies SOFT Cost categories .........................................................................4 Table 3 Demand segmentation (energy consumption) .................................................................................................5 Table 4 Solar Minigrid cases studied .............................................................................................................................6 Table 5. Overall CAPEX for each PV Minigrid case .........................................................................................................7 Table 6. Sizing parameters per Subcomponent (sample size: 16 minigrids) ...............................................................14 Figure 1: Typical functions in a decentralized electricity delivery scheme ....................................................................1 Figure 2. Typical DC coupling architecture in a PV-hybrid minigrid...............................................................................2 Figure 3. Typical AC coupling architecture in a PV-hybrid minigrid ...............................................................................2 Figure 4. Solar PV minigrid cases (16) assessed in the CAPEX benchmarking study .....................................................5 Figure 5. Overall CAPEX per kW (without installation) for each minigrid case study ....................................................8 Figure 6. Overall CAPEX per kW (without installation) for additional minigrid cases (source: ESMAP) ........................8 Figure 7. Number of customers vs power output and CAPEX (minigrid capacity range of 10 to 250 kW). ...................9 Figure 7. Overall CAPEX per kW (without installation) and by electricity service management model. .......................9 Figure 9. Overall CAPEX per kW (without installation) and by type of project ...........................................................10 Figure 10. PV Minigrid CAPEX breakdown (%) into Cost categories ............................................................................11 Figure 11. Median values of the CAPEX Cost categories breakdown (sample size: 16 PV minigrids) .........................12 Figure 12. PV minigrid functional category CAPEX median values (sample size: 16 PV minigrids) .............................12 Figure 13. Minigrid project development costs are clearly influences by project multi project scale. .......................13 Figure 14. Selection of PV minigrid equipment cost weight ........................................................................................14 Figure 15. Selection of PV minigrid equipment benchmark costs ...............................................................................15 Figure 16. Customer distribution per tiers; n. of customers in brackets (sample size: 16 minigrids) .........................16 Figure 17. PV minigrid CAPEX per customer (sample size: 16 PV minigrids) ...............................................................17 Figure 18. PV minigrid CAPEX per customer in each case study (sample size: 16 PV minigrids) .................................17 Figure 19. PV minigrid main equipment manufacturers occurrence (sample size: 16 minigrids ). ............................20 MINI-GRIDS AND ARRIVAL OF THE MAIN GRID | i 1| INTRODUCTION Solar photovoltaic (PV) minigrids are a reality. Several pilot projects have demonstrated over the last half decade that these solutions can be a reliable and competitive alternative to grid extension, and have opened the appetite of policy makers and planners to consider ambitious decentralized electrification programmes. However, any vision for a large-scale replication needs to be informed on the current state of minigrid costs, both in terms of cost per power supply capacity and cost per customer. ESMAP, with the collaboration of Trama Tecnoambiental (TTA) is currently undertaking a PV minigrid costing study with the aim to provide a benchmark of the on-site (upfront costs only, including hard costs and logistics) of already commissioned PV only or PV-diesel hybrid mini-grids in the African and Asian contexts, that have a proven track record of operation, to enable the pinpointing of opportunities for cost reduction in future projects. The cost assessment of any infrastructure needs to adapt to the nature of such infrastructure, most especially if one of the aims of the assessment is to understand where costs are incurred, where they can realistically be managed or reduced and where subsidies could be considered if needed or desired due to the electrification benefits that may accrue. A first technical standardization of micro-grids was developed by Task 11 of the International Energy Agency PVPS, based on the recommendations of the International Electrotechnical Commission IEC 62257 TS series.1 In the case of mini-grids for electricity supply, there are several functions (or subsystems) to consider: Figure 1: Typical functions in a decentralized electricity delivery scheme Figure 1 above separates those functions related to generation from those associated with distribution. As was the case with the site characterization, the micro-grid (or mini-grid) business model assumed in the reference cases is a decentralized (or stand-alone or off-grid) system that combines a generation micro-plant feeding a distribution micro-grid that supplies end-users. This covers both the conventional “concession� model and the small “energy cluster� models seen in Africa and Asia. Depending on the type of electrical coupling (DC or AC) between PV panels generation and storage, there are two main types of minigrid generation subsystem configuration, as shown in Figures 2 and 3. 1 P Jacquin 2011 - Social, Economic and Organizational Framework for Sustainable Operation of PV Hybrid Systems within Mini- Grids – IEA PVPS Task 11 Figure 2. Typical DC coupling architecture in a PV-hybrid minigrid Figure 3. Typical AC coupling architecture in a PV-hybrid minigrid 2 | DRAFT NOVEMBER 2017 2| PV MINIGRIDS COST CATEGORY COMPONENTS 2.1 HARD COST CATEGORY COMPONENTS Based on the typical functions of a mini-grid as presented in the previous section, this study has investigated the following set of Equipment and Supplies cost categories. Each category includes several cost items and their corresponding unit indicator, listed in the table below: Table 1 Solar Minigrid Equipment and Supplies HARD Cost categories Hard cost Category Unit 1 Generation PV modules (including spare parts) kWp PV modules Structure kWp Charge regulators (MPPT) and protections – DC coupling kWp or Solar Inverter (MPPT) and protection – AC coupling 2 Storage and powerhouse Lead acid (incl. cells, cabling, protection) kWh Lithium ion (incl. cells, cabling, protection) kWh Monitoring and control system unit 2 Powerhouse (building, cabinet, container, incl. fence) m 3 Conversion Battery inverter incl. cabling kVA EMS Energy Management System unit Backup Diesel generator kVA 4 Distribution and Consumption LV grid (incl. poles, cabling and protections) km LV distribution poles km Street lighting (if applicable) n. customers or km Smart meters and service connections n. customers 5. Customer systems (without installation) End user indoor wiring (cabling, sockets and protections) (if applicable) n. customers End user appliances (if applicable) n. customers The criteria that guided the selection of the above items have been (i) enabling analysis at pre-feasibility and feasibility levels, and (ii) coherence with IFC, GIZ, other donor and available private sector cost breakdown in the feasibility studies, financial models and on-going minigrid projects developed by TTA. 2.2 SOFT COST CATEGORY COMPONENTS Mini grid soft costs have also been investigated in order to complement the equipment and supplies cost and therefore approach the overall on-site Capital costs in real, operating PV minigrids. Project development and Logistics are more likely to be region or country specific (e.g. the maturity of PV and minigrid industry in a given country), or even site specific (e.g. the remoteness of an off grid community, like an island, will largely condition the logistics costs). From this point of view, it is not a Trama Tecnoambiental S.L | Avda. Meridiana 153, 08026, Barcelona, Spain | Tel : +34 93 446 9894 | www.tta.com.es 3 straightforward issue to select a benchmark unit for these cost categories; this study provides some analysis in this sense. The soft cost categories and corresponding costing unit are: Table 2 Solar Minigrid Equipment and Supplies SOFT Cost categories Soft cost Category Unit 6. Project development Management and engineering % overall hard costs or kW (AC service) Capacity building and training (of local operators) 7. Logistics International shipping costs (maritime), incl. customs % overall hard costs or kW (AC service) Local transportation costs (road) Storage of equipment % overall hard costs or kW (AC service) Insurance Installation costs have also been investigated, as a separate category. 2.3 LEVEL OF ELECTRICITY SERVICE SUPPLY Previous studies2 have shown the relevance of considering costs per customer as well as costs per component unit when assessing the affordability of electricity services from mini-grids. This is because average kWh costs are useful to compare solutions for one application but for different systems in different locations and small demands, transaction costs, local management, etc., may represent a higher fraction of service costs. At the same time, current energy development visions, such as the UN Sustainable Energy for All, or the Sustainable Development Goals3 (specifically, SDG 7 “Ensure access to affordable, reliable, sustainable and modern energy for all�) are promoting the practitioner’s debate towards the issue of which levels of access to energy are sufficient to enable residential energy needs as well as to deploy productive uses of energy (commercial, or even industrial). In rural electrification, ideally, the optimal minigrid would be the one offering the highest level of electricity supply (quantity of electricity served) to customers from the lowest CAPEX possible, bearing in mind that minigrids can offer several levels of supply according to different tariff or service schemes. This study follows the demand segmentation pattern shown in Table 3 has been followed, in order to define reference electricity consumption tiers applicable to all the minigrid cases analysed. This pattern is adapted from the reports Energy Access multitier framework (ESMAP, 2015) and on Quality Assurance for MiniGrids (NREL, 2016), as well as the analysis of TTA database of PV mingrids built since 1998. The CAPEX per customer is then assessed for each tier, so that a more precise comparison can be done between minigrids that are supplying different levels of service, regardless the number of customers they are serving. 2 Arranz-Piera P., Vallvé X., González S., Cost effectiveness of PV hybrid village power systems vs. conventional solutions. 3rd European Conference PV-hybrid and mini-grid, 11-12 May 2006 Aix en Provence, France. 3 http://www.un.org/sustainabledevelopment/energy/ 4 | DRAFT NOVEMBER 2017 Table 3 Demand segmentation (energy consumption) Tier 1 - Residential basic (<8kWh/month) Tier 2 - Residential med (<20kWh/month) Tier 3 - Residential high (<50kWh/month) Tier 4 - Productive (<110kWh/month) Anchor load(s) (110kWh/month and above) In order to calculate the CAPEX per customer, the Generation costs (cost categories 1-2-3-5-6-7 in Table 1) have been prorated by Tier consumption level, while the Distribution costs (category 4 in Table 1) evenly considered per customer. 3| PV MINIGRID CASES ASSESSED The hard cost benchmark study has been based on a selection of currently operational solar mini grid case studies in Africa and Asia, delivering electricity service in the following conditions:  Service availability 24hour / 7days a week  Low voltage distribution  Solar generation as the primary source (minimum solar fraction 60%) During the period March to November 2017, over 50 minigrid project developers and practitioners in the minigrid space were contacted, in order to identify suitable PV minigrid cases for the Costing analysis that this work pursues. Until October 2017, 16 cases of solar minigrids have been received and completed, after a series of iterations and interviews by the TTA research team and the relevant minigrid developers. All of them started operating within the last 4 years. Figure 4. Solar PV minigrid cases (16) assessed in the CAPEX benchmarking study Trama Tecnoambiental S.L | Avda. Meridiana 153, 08026, Barcelona, Spain | Tel : +34 93 446 9894 | www.tta.com.es 5 Table 4 Solar Minigrid cases studied Operating n. Power (AC) Solar Management Site, Country Continent Service since Customers output kW fraction Model Manikgonj, Asia 2017 1099 228 24/7 87,5% Private utility Bangladesh Mombou, Chad Africa 2014 133 40 24/7 100% Community Volta Lake, Ghana Africa 2015 157 50 24/7 93% Public utility Talek, Narok, Africa 2015 120 40 24/7 94% Public utility Kenya Tanzania Africa 2016 63 30 24/7 100% Private utility Kutubdia, Asia 2014 360 100 18/7 85% Private utility Bangladesh Tunga Jika, Nigeria Africa 2017 290 100 24/7 100% Private utility Lengbamah, Lofa, Africa 2017 156 23 24/7 100% Private utility Liberia Segbwema, Kailahun, Sierra Africa 2016 204 128 16-18/7 100% Private utility Leone Samfya, Luapula, Africa 2014 480 60 24/7 100% Public utility Zambia Laithway, Asia 2016 130 10 24/7 100% Public utility Myanmar Bihar, India Asia 2017 95 30 24/7 90% Private utility Kakpin, Ivory Coast Africa 2016 150 36 24/7 100% Community Dubung, Tanahun, PPP-(Private Asia 2015 112 20,4 24/7 100% Nepal utility) West Bank, Asia 2016 39 29 24/7 100% Community Palestine Bambadinca, Africa 2015 1421 200 24/7 98% Community Guinea Bissau Table 4 shows the variety of cases analysed, 10 in Africa and 6 in Asia; the power output capacity ranging from 10 to 228 kW, and customers per minigrid ranging from 39 to 1421. In terms of the Management model applied, half of the minigrid cases are being operated by private utilities or PPPs, while the other cases are run by public utilities (4 out of 16), and community organizations (4 out of 16). 6 | DRAFT NOVEMBER 2017 4| OVERALL CAPEX AND CAPEX PER KW The first result that arises from the minigrid cases analysis is the overall CAPEX; Installation costs are deemed to be very site specific (even inside one same country or state), and they have been disaggregated form the equipment and supplies costs. Table 5. Overall CAPEX for each PV Minigrid case In CAPEX without CAPEX with Power (AC) Greenfield or Site, Country operation Installation Installation Cost output kW Brownfield since USD USD Manikgonj, Bangladesh 2017 228 Green 1.050.500 1.090.211 Mombou, Chad 2014 40 Green 276.703 296.529 Volta Lake, Ghana 2015 50 Green 339.111 364.922 Talek, Narok, Kenya 2015 40 Green 293.919 304.409 Tanzania 2016 30 Green 242.256 265.312 Kutubdia, Bangladesh 2014 100 Green 762.238 973.177 Tunga Jika, Nigeria 2017 100 Green 582.298 639.212 Lengbamah, Lofa, Liberia 2017 23 Green 132.434 151.969 Segbwema, Kailahun, Sierra Leone 2016 128 Brown 367.051 400.703 Samfya, Luapula, Zambia 2014 60 Green 551.017 602.757 Laithway, Myanmar 2016 10 Green 85.049 88.591 Bihar, India 2017 30 Green 88.592 96.214 Kakpin, Ivory Coast 2016 36 Green 352.991 385.081 Dubung, Tanahun, Nepal 2015 20,4 Green 144.961 154.166 West Bank, Palestine 2016 29 Brown 157.577 169.524 Bambadinca, Guinea Bissau 2015 200 Green 2.374.954 3.262.754 In order to start a cross comparison of minigrid cases, the CAPEX per power capacity is a first benchmark to be assessed. Figure 5 shows the overall CAPEX per kW, ranging from nearly 12 USD/W to 3USD/W. Potential correlations in terms of minigrid size, number of customers, geographical location, type of management model, project scale, minigrid market maturity and level of service per customer are further investigated in this study, in order to understand the drivers for such a wide range in the CAPEX per kW data. One first appreciation from Figure 5 is that there are no substantial differences due to the Continent variable; a similar range of values is observed in Asia and in Africa, with the exception of the highest CAPEX per kW score, being roughly 11.8 USD/W in Africa and 8.5 USD/W in Asia. Figure 6 shows the CAPEX per kW registered in a set of 24 additional cases characterised by ESMAP in Bangladesh and Myanmar, all of them developed in the last 2 years. For the Bangladesh cases (16 PV minigrids, ranging from 100 to 250 kWp), CAPEX per kW levels are found to be between 3.2 and 10.9 USD/W, while in Myanmar (8 PV minigrids, ranging from 17 to 120 kWp), CAPEX per kW are between 2.8 to 6 USD/W, except for one case (1.9USD/W) where the service per customer is very basic. These results are pretty much in line with the Asian cases presented in Figure 5. Trama Tecnoambiental S.L | Avda. Meridiana 153, 08026, Barcelona, Spain | Tel : +34 93 446 9894 | www.tta.com.es 7 Figure 5. Overall CAPEX per kW (without installation) for each minigrid case study Figure 6. Overall CAPEX per kW (without installation) for additional minigrid cases (source: ESMAP) 8 | DRAFT NOVEMBER 2017 Results suggest that there is no direct correlation between the number of connections and the overall CAPEX per kW (Figure 7), i.e. it cannot be inferred that the more connected customers a minigrid will have, the lower CAPEX it will incur. Such effect is, in part, explained by the lack of direct correlation between the number of customers and the minigrid power output, due to the differences in the levels of service that each customer has contracted. This is an argument that flags the need for a tiered approach to the CAPEX per customer benchmarks mentioned in section 2.6. Power output CAPEX/kW 250 $14,000 AC Power output (kW) $12,000 200 CAPEX per kW $10,000 150 $8,000 100 $6,000 $4,000 50 $2,000 0 $- 0 500 1000 1500 N. customers Figure 7. Number of customers vs power output and CAPEX (minigrid capacity range of 10 to 250 kW). The influence of the electricity service management (or business) model is explored below. It can be noted that minigrids developed and operated under private utility service schemes have relatively lower CAPEX per kW, throughout the whole capacity range spectrum. CAPEX Benchmark Cost vs. power output (kW) Bubble Size: TOTAL CAPEX 12000 Man agem en t Model Com m u n ity Priv ate u tility 10000 Pu blic u tility TOTAL USD/kW 8000 6000 4000 2000 0 50 100 150 200 250 power output (kW) Figure 8. Overall CAPEX per kW (without installation) and by electricity service management model. Trama Tecnoambiental S.L | Avda. Meridiana 153, 08026, Barcelona, Spain | Tel : +34 93 446 9894 | www.tta.com.es 9 Another factor influencing the overall costs is the project scale (or minigrid market maturity), by looking at whether the minigrid cases were developed as a single project, or as part of a multi-minigrid programme. In Figure 9 below, Multi S (small) stands for programmes involving up to 5 minigrids, and multi L (large) stands for programmes involving more than 6 minigrids. CAPEX Benchmark Cost vs. power output (kW) Bubble Size: TOTAL CAPEX 12000 P roject Matu rity Multi L Multi S 10000 Sin gle TOTAL USD/kW 8000 6000 4000 2000 0 50 100 150 200 250 power output (kW) Figure 9. Overall CAPEX per kW (without installation) and by type of project A clear trend can be observed here, with multi-minigrid cases registering lower CAPEX than single minigrid projects. 20% to 70% reductions on CAPEX per kW can be achieved if multi-minigrid programmes are promoted. 10 | DRAFT NOVEMBER 2017 5| CAPEX BREAKDOWN BY COST CATEGORY The relative weight of each CAPEX cost category (see sections 2.2 and 2.3) for each case study is presented in the figure below. Figure 10. PV Minigrid CAPEX breakdown (%) into Cost categories The CAPEX per cost category weight differs significantly from case to case, but figure 11 shows the median values of each main component category contribution to the overall CAPEX: Generation: 23% Storage and Powerhouse: 20% Conversion: 10% Distribution: 17% Customer Systems: 3% Project Development: 11% Logistics: 6% Figure 12 presents the Cost benchmarks (median values, CAPEX per characteristing sizing Unit) of each category. Generation: 1485 USD/kWp Storage and Powerhouse: 220 USD/kWh Conversion: 844 USD/KVA Distribution: 331 USD/customer (or 14980 USD/km) Customer Systems: 47 USD/customer Project Development: 832 USD/kW Logistics: 470 USD/kW Trama Tecnoambiental S.L | Avda. Meridiana 153, 08026, Barcelona, Spain | Tel : +34 93 446 9894 | www.tta.com.es 11 Figure 11. Median values of the CAPEX Cost categories breakdown (sample size: 16 PV minigrids) Figure 12. PV minigrid functional category CAPEX median values (sample size: 16 PV minigrids) 12 | DRAFT NOVEMBER 2017 An aspect that clearly influences the Project development costs is whether the PV minigrid has been built as a single project, or as part of a multi-project programme. Multi S (small) stands for programmes involving up to 5 minigrids, and multi L (large) stands for programmes involving more than 10 minigrids. Project Development Costs 1800 1600 1400 1200 PROJ USD/kW 1069 1000 800 645 600 400 200 100 0 Multi L Multi S Single Sites per Project Figure 13. Minigrid project development costs are clearly influences by project multi project scale. 6| CAPEX BREAKDOWN BY EQUIPMENT The analysis of specific equipment costs is also interesting in order to approach potential spaces for Cost reduction in PV minigrid deployment. Table 6 shows the main equipment sizing at each of the assessed minigrids. Figure 14 shows the relative weight of the main equipment costs in the overall CAPEX of the minigrids assessed, and reveals that batteries have nowadays the biggest impact, followed by PV panels, Inverters and the distribution grid cabling. Distribution costs can vary significantly from case to case (widest data range in Figure 14). Figure 15 presents the Costs per characteristic unit of each equipment. Trama Tecnoambiental S.L | Avda. Meridiana 153, 08026, Barcelona, Spain | Tel : +34 93 446 9894 | www.tta.com.es 13 Figure 14. Selection of PV minigrid equipment cost weight Table 6. Sizing parameters per Subcomponent (sample size: 16 minigrids) Distribution PV size Batteries Inverter Genset Powerhouse Mini grid project Customers lines km kWp kWh KVA KVA area m2 Palestine 39 5,0 19 168 29 0 75,0 Tanzania 63 4,4 16 61 30 13 15,0 Bihar, India 95 2,0 34 86 18 25 N/A Dubung, Tanahun, Nepal 112 3,0 18 115 25,5 0 35,4 Talek, Narok, Kenya 120 3,0 40 154 24 13 50,0 Laithway, Myanmar 130 4,5 9 87 7 6 N/A Mombou, Chad 133 3,5 40 430 36 50 56,0 Kakpin, Ivory Coast 150 3,5 39 360 45 45 240,0 Lengbamah, Lofa, Liberia 156 0,8 23 181 24 33 52,0 Segbwema, Kailahun, 156 5,5 128 488 144 0 28,8 Sierra Leone Volta lake, Ghana 157 2,7 54 407 48 33 60,0 Tunga Jika, Nigeria 290 8,8 100 350 54 0 35,7 Kutubdia, Bangladesh 360 4,0 100 517 90 60 280,0 Samfya, Luapula, Zambia 480 12,0 60 936 60 0 N/A Manikgonj, Bangladesh 1099 14,0 228 887 144 150 394,0 Bambadinca, 1421 13,3 312 1987 135 240 75,0 Guinea Bissau 14 | DRAFT NOVEMBER 2017 Figure 15. Selection of PV minigrid equipment benchmark costs Regarding the main equipment in PV hybrid minigrids, Figure 15 shows that there is a wide range in the Costs of PV panels (from 180 to 1060 USD/kWp) and Inverters (from 300 to 990 USD/KVA), as well as in Powehouse building or Fencing (from 100 to 800 USD/m2) and Gensets (130 to 850 USD/KVA). Hence, a first observation can be that there is scope for minigrid projects to reduce these component costs and reach similar values to the best benchmarks found in this study, which are the minigrids developed in areas or countries with higher maturity and that are promoting multi-minigrid development to seek scalability. The cost of batteries is less variable from case to case, with a range of Cost between 100 to 300 USD/kWh. It must be noted that the majority of minigrids assessed have installed Lead-acid battery banks, with only one reported case of Lithium ion. These figures can be compared to published references on equipment cost trends and projections; however, the source and potential interests of such references (whether it is manufacturing industry, pro or against renewable energy or fossil fuel think tanks, etc.) shall be observed. Trama Tecnoambiental S.L | Avda. Meridiana 153, 08026, Barcelona, Spain | Tel : +34 93 446 9894 | www.tta.com.es 15 7| COST PER CUSTOMER (TIERED APPROACH) The demand segmentation per tiers reveals the wide variety of customer patterns found within the PV minigrid cases analysed; from minigrids with an identical (flat) basic level of service per customer (cases in Myanmar and Zambia, where all customers consume below 8kWh/month), to minigrids where most customers consume in the high end tiers (large residential and commercial or productive customers, like the cases of Palestine and Bangladesh). In the majority of cases (11 out of 16), customers are distributed within 3 or 4 different tiers. Figure 16. Customer distribution per tiers; n. of customers in brackets (sample size: 16 minigrids) The CAPEX per customer Tier levels found are shown in the table below and in Figures 17-18, following the methodology presented in Table 3. CAPEX per Tier 1 or Tier 2 can be compared to Solar Home Systems (SHS) costs, since these residential systems typically provide up to 20kWh/month of electricity per unit; however, SHS normally provide DC service, and therefore a proper comparison with the above cost references shall consider SHS providing AC service (i.e., including a small inverter). 16 | DRAFT NOVEMBER 2017 Figure 17. PV minigrid CAPEX per customer (sample size: 16 PV minigrids) Figure 18. PV minigrid CAPEX per customer in each case study (sample size: 16 PV minigrids) Trama Tecnoambiental S.L | Avda. Meridiana 153, 08026, Barcelona, Spain | Tel : +34 93 446 9894 | www.tta.com.es 17 8| EQUIPMENT SUPPLIERS The following graphs show the occurrence of equipment manufacturers found in the 16 PV minigrid cases assessed. Starting with the PV modules, there is wide variety of brands found (10 different ones), with only Solar World and Canadian Solar being cited more than once. A similar situation is found with batteries, with 9 different brands mentioned, where only Hoppecke, Exide and Sunlight are cited more than once. 18 | DRAFT NOVEMBER 2017 Regarding Conversion and Smart metering, there are specific manufacturers that are more popular within the cases assessed: SMA and STUDER for the conversion equipment, and CIRCUTOR and SPARKMETER for the smart meter supplies. Trama Tecnoambiental S.L | Avda. Meridiana 153, 08026, Barcelona, Spain | Tel : +34 93 446 9894 | www.tta.com.es 19 Figure 19. PV minigrid main equipment manufacturers occurrence (sample size: 16 minigrids ). 20 | DRAFT NOVEMBER 2017