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Deployment Business Model by RE Technology

Chapter 4. Technical Characteristics of Renewable Energy by Source

4.3 Major Environment Considerations in Developing RE

4.4.2 Deployment Business Model by RE Technology

4.4.2.1 Solar PV

Because solar PV plants are built in modules, supplying electricity at various capacities is possible, and it is possible to supply electricity to areas and buildings by constructing the plant close to the place of demand. This type of energy generation is applicable in almost all areas with good insolation, and suitable

Case 1: Galapagos solar PV plant

• Target location: Santa Cruz Island in Galapagos Islands, Ecuador

• Capacity: 1.5 MW, project cost: 10 million US dollars

• Project type: KOICA ODA

• Participant companies: BJ Power, and others

• Use: Responsible for 1/3 of electricity consumption of Santa Cruz Island.

[Figure 4-28] Galapagos solar PV

Source: BJ POWER

Case 2: Grid-connected solar PV plant, Sri Lanka

• Target location: Baruthankanda, Hambantota, Sri Lanka

• Capacity: 500 kW, project cost: 3 million USD

• Project type: KOICA ODA

• Participating company: LG CNS

• Use: Ministry of Power and Renewable Energy of Sri Lanka and remote area residents

4.4.2.2 Hydropower station

The hydropower plant is built in water systems and applies technology that generates electricity by converting the fall of water into electrical energy. Hydropower stations of 10 MW or less are classified as small hydropower and differentiated from large-scale hydropower stations. The case below refers to a

hydropower plant project in the Mekong River, Laos, constructed by Korean companies facilitated by an EDCF (Economic Development Cooperation Fund) loan.

Case: Hydropower plant, the Mekong River, Laos

• Target location: The Mekong River Xe-Pian, Xe-Namnoy tributary

• Capacity: 410 MW, project cost: 1 billion USD

• Participating companies: SK E&C, Korea Western Power Co., Ltd., and Thailand Ratchaburi

• Project/Operation method: EDCF, PPP (Public Private Partnership), BOT (Build- Operate-Transfer)

• Use: Supply electricity to 400 thousand households

[Figure 4-29] A diagram of project structure of Laos Xe-Pian Xe-Namnoy hydropower

Source: KEEI

[Figure 4-30] Nepal hydropower plant

Source: http://www.odakorea.go.kr

4.4.2.3 Small Hydropower Plant

A small hydropower plant also is built in a water system and also applies technology generating electricity by converting the fall of water into electrical energy. However, as it is built at a small scale, it has the advantage of a reduced amount of negative ecological and social influences. In addition, it can be utilized as a distributed electricity generation system in remote areas. Two cases of small hydropower plants are introduced below; one project was promoted with the financial resources of ODA of KOICA, and by the P-CDM (Programmatic Clean Development Mechanism).

Case 1: Small hydropower plant of Indonesia

• Target area: A mountain village near Bogor, Indonesia

• Project information: Small hydropower plant and elementary school construction

• Project method: PPP-Social contribution by Korea Midland Power Co. Ltd. (KRW 300 million) and ODA of KOICA (KRW 300 million)

• Use: Supply electricity to 350 households.

Case 2: Small hydropower plant, Sri Lanka

• Project method: P-CDM (Programmatic Clean Development Mechanism)

• Participation parties: Korea Environment Corporation (KECO), Sri Lanka Carbon Fund (SLCF)

❙Table 4-13❙ Roles of participants of Sri Lanka project Principal

entity Korea Environment Corporation (KECO) Sri Lanka Carbon Fund (SLCF) Role CDM General management CDM business scale expansion

Contents

- Provides expert knowledge for P-CDM registration, technology, manpower, and required cost

- Draw up a business plan for business registration (PDD) and preliminary feasibility study

- Provides various material and cooperation necessary for P-CDM registration

- Secure unit project (CPA) of 50 MW or larger within 5 years

Source: KEEI

4.4.2.4 Wind power plant

Wind power generation is a RE generation source. Electricity can be supplied to nearby areas and buildings by installing wind power generators in the areas where the wind condition is superior.

Alternatively, Electricity can be supplied to a large consumption area through long-distance transmission by connecting to the grid. Maintenance and management are relatively difficult. It is appropriate in an area with good accessibility. Because of its high dependence on natural conditions, it is imperative to select the project site through an accurate resource assessment process. The following case is an overview of a project promoted in South Africa with the financial resource of AfDB (African Development Bank).

Case: Sere wind farm, South Africa

• Target area: Western Cape, South Africa

• Capacity: 100 MW, project cost: 375 million USD

• Project information: Installed 46 2.3 MW grade wind-power generators, constructed 44 km of transmission line

• Project method: AfDB (265 million USD) and CTF loan (100 million USD)

• Company: Eskom (Electricity Supply Commission of South Africa)

• Use: 298,000 MWh annual power production.

[Figure 4-31] Sere wind farm in South Africa

4.4.2.5 Biogas

Biogas is produced by using organic biomass, such as livestock manure and domestic waste water, and it can be used directly for heating or cooking or as raw material for electricity generation. Furthermore, high purity methane can be produced through the refining process to increase the added value.

Traditionally, biogas was used directly for heating or cooking, but recently, modern methods of producing electricity and heat by using generators have been adopted. Biogas has the advantage of reducing environmental contamination by reducing organic waste and simultaneously producing clean energy. Cases promoted by the East Asia Climate Partnership support project and the CDM (Clean Development Mechanism) project are presented below.

Case 1: Vietnam biogas electricity generation facility

• Target location: Hochiminh City, Vietnam

• Project information: Two sets of biogas production facilities, four sets of 20 kW electricity generation facilities

• Project method: A part of support project for East Asia Climate Partnership (Free support project for developing countries, from 2008 to 2012 at a total amount of KRW 200 billion)

• Participating companies: HAHATEC, Ho Chi Minh City Agricultural Corporation

• Use: Supply electricity to 200 households at South Korea standard (640 MWh per year).

Case 2: Biogas electricity generation in South Korea

• Target location: Jeongeup-si, South Korea

• Capacity: 370 kW (100 m3/day), project cost: KRW7 billion

• Project information: Biogas production and electricity generation by collecting wastewater from 10 villages

• Project method: CDM project (30% central government, 30% local government, 40% self-funded and loan)

• Use: 2,492 MWh annual electricity production.

[Figure 4-32] Biogas power plant in Jeoungeup of Korea

Source: KEA

4.4.2.6 Biomass Electricity Generation

Biomass electricity generation is a method of producing electricity and heat by burning biomass, such as wood chips, wood pellets, palm kernel shells (PKS), and empty fruit bunches (EFB). Cameroon has a high potential for biomass electricity generation because of abundant biomass fuel, such as wood, and palm by-products such as PKS and EFB. Biomass electricity generation plants promoted in South Korea and China are presented below.

Case 1: Biomass electricity generation plant in South Korea

• Target location: Dangjin, South Korea

• Capacity: 105 MW

• Project information: Uses PKS fuel, electricity generation

• Project method: Conducts RPS (Renewable Portfolio Standard) mandate

• Company: GS EPS

Case 2: Biomass electricity generation plant in China

• Project information: Uses PKS fuel, electricity generation

• Project method: CDM (170 thousand CO2 ton/year for 10 years)

• Participating companies: GS EPS, Echo Frontier, Shandong PingyuanHanyuan Green Energy

[Figure 4-33] Biomass power plant in Shandong of China

Source: https://www.gseps.com

4.4.2.7 Biodiesel

Biodiesel is produced by technology that uses oily plants such as jatropha and palms. Because Cameroon has a suitable climate and soil for growing jatropha, especially in the northwest region, the country has a high potential for biodiesel production. The raw material was abundant enough to produce 230 thousand ton of palm oil in 2010. However, a cautious approach to employing this technology is prudent, as concerns have been raised recently about deforestation for securing biomass raw material. The Vietnam biodiesel pilot plant project, promoted as a supporting project for the East Asia Climate Partnership is presented below.

Case: Vietnam biodiesel pilot plant

• Target location: Vietnam Industrial Chemistry Research Complex

• Production capacity: 200 ton/year

• Project information: Production of biodiesel using jatropha and catfish oil

• Project method: A support project for East Asia Climate Partnership

• Participating companies: SMPOT, Vietnam Industrial Chemistry Research Institute

4.4.2.8 Fuel Cell Power Plant

Fuel cell is a technology that produces electricity through chemical reactions using hydrogen as the input. The appropriate site for installation is an area where natural gas (LNG) is abundant. Accordingly, it is an appropriate business model for gas-producing countries with low LNG prices. A case of a fuel-cell power plant project promoted as an ODA project of KOICA in Jakarta, Indonesia is presented below.

Case: Fuel cell power plant in Jakarta, Indonesia

• Target location: Ancol Amusement Park, Jakarta

• Capacity: 300 kW, power generation capacity: 2,365 MWh

• Project type: KOICA ODA

• Participating company: POSCO Energy

• Use: Desalination plant and electricity supply to neighboring areas.

[Figure 4-34] Fuel cell power plant in Jakarta of Indonesia

Source: https://www.gasnews.com

4.4.2.9 Solar Cooker

firewood. The technology is supplied widely in areas such as India and South Africa, and the cookers are supplied mostly by using the UNDP-GEF financial resources.

❙ Table 4-14 ❙ Status of solar cooker installation in India (December 2014.)

States

With

MNRE1)CFA2) Without any CFA Under R&D &

Govt. support Total

No. Area No. Area No

. Area No. Area

Uttarakhand 10 1,412 - - - - 10 1,412

Punjab 4 788 - - - - 4 788

Haryana 3 736 1 20 1 7,024 5 7,780

Gujarat 38 3,760 4 64 1 1,440 43 5,264

Himachal

Pradesh 4 698 - - - - 4 698

Maharashtra 14 6,553 2 74 3 93 19 6,720

Madhya Pradesh 5 396 - - - - 5 396

Chhatisgarh 6 784 - - - - 6 784

Delhi 4 908 - - - - 4 908

Rajasthan 8 1,745 - - - - 8 1,745

Tamilnadu 13 2,356 2 57 2 1,716 17 4,129

Andhra Pradesh 11 2,318 - - - - 11 2,318

Karnataka 16 6,518 1 32 - - 17 6,550

Odisha 1 34 - - - - 1 34

Bihar 1 80 - - - - 1 80

Laddakah 1 80 - - - - 1 80

Uttar Pradesh 4 620 2 64 6 684

Pondichery 1 48 - - - - 1 48

Total 144 29,834 12 311 7 10,273 163 40,418

Source: http://mnre.gov.in/file-manager/UserFiles/staewise_installation_of_CST_based_systems.pdf (Searched on June 21, 2016) Table note: 1) Ministry of New and Renewable Energy.

2) It is a Central Financial Assistance project, which means government support (subsidy) for solar equipment.

[Figure 4-35] Solar concentrating cooker

Source: EBS

4.4.2.10 Hybrid System

The hybrid system is an energy supply technology that integrates multiple energy technologies, such as solar and wind power. It enables supplying an energy system optimized for regional characteristics.

The cases presented below are hybrid system models that integrate solar and wind power, promoted in Mongolia and Kazakhstan.

Case 1: Mandakh project, Mongolia

• Target location: Mandakh, Mongolia

• Capacity: 120 kW (solar 100 kW, wind power 20 kW)

• Project type: KEA support project for GHG reduction of developing countries (ODA)

• Use: Village power supply, drinking water supply

[Figure 4-36] The scenery of Mandakh

Case 2: Kazakhstan Solar-Wind Project

• Target location: Ancol Amusement Park, Jakarta

• Capacity: 50 kW, project cost: 1.5 million USD

• Project type: PPP (KOICA-Daesung Energy)

[Figure 4-37] Overview of Solarwin system

4.4.2.11 Energy Self-Sufficient Village Construction

The energy self-sufficient village is a concept that meets the energy demand of the village by using RE, an energy storage system (ESS), and energy-efficiency improvement technology. Cases of energy self- sufficient villages constructed in Peru and South Korea are presented below.

Case 1: Peru Amazon swamp preservation project

• Target location: Peru Amazon Maranon and Pastaza River basin wetlands

• Project implementation: Peru Environmental Protection Fund (Profonanpe)

• Project information: Educate residents to collect fruits while protecting the forest and supplying stable electricity through solar PV generation and ESS.

• Project type: GCF (GCF 6.24 million dollars, Profonanpe 1.07 million USD, KOICA1.80 million USD)

Case 2: Gapado, Gasado, and Ulleungdo energy self-sufficient islands, South Korea

[Figure 4-38] The system of energy self-sufficient islands in Korea

This chapter analyzes the potential fort RE in Cameroon. The targeted RE sources are Solar PV, wind power, small hydropower, and biomass energy, which are regarded as having relatively abundant potential and whose deployment targets are set by the INDC. The analysis is based on government documents and, where required, material released by recognized organizations, such as the IRENA or the French Development Agency. KEEI and GEO C&I Co. Ltd independently estimated the resource potential of the agricultural by-products to be used for biomass energy by employing data on Cameroonian agricultural products provided by the FAO (Food and Agriculture Organization).

5.1 Solar PV

The potential for solar energy in Cameroon is relatively high. The ARSEL estimates indicate that the measured ground insolation averaged 4.9 kWh/m2/day across the entire country, with the northern regions recording 5.8 kWh/m2/day and the southern regions 4.3 kWh/m2/day. The solar energy potential measured across the entire national area of Cameroon was relatively high at 2,327 TWh/day.39 The technical potential measured for 1/3 of the entire national area was 780 TWh/day, as measured by PDER in 2016. The technical potential was measured at 172 TWh/day for the northern and the far northern regions (MINEE, 2016, p.147).

[Fig 5-1] below shows the amount of insolation across Cameroon and the annual power generation volume that can be produced by installing PV panel of a 1 kWp, set at the most desirable degrees, according to studies by Šúri et. al (2007) and Huld et. al (2012). The data in the map shows average generation volume between 1998 and 2013. The data indicate that solar PV in the upper part of the mid-region of Cameroon generates 1,350 kWh per 1 kWp annually. The large area of the northern region has high solar PV potential, amounting to an annual power generation capacity of over 1,650 kWh.

The International Renewable Energy Agency (IRENA, 2014) used the GIS analysis method for its recent study on 53 African countries and estimated the technical potential of PV and wind power. The technical potential was calculated by applying concentrated solar PV (CSP), efficiency of the solar PV and wind power technologies, and a conversion factor. This study produced feasible results compared with other estimates, as it excluded all unsuitable regions. According to these results, in terms of the technical potential of solar PV, CSP could produces 3,706 TWh on average annually and Solar PV could produces 10,105 TWh

39 Donnee IRGM, MINEE (2015, p. 111)

5. Resource Potential of Renewable

Energy in Cameroon

annually. Therefore, Solar PV generation could produce more power than CSP and, in addition, its potential is significantly higher than the 2014 total power capacity of 7,688.4 GWh in Cameroon. The targeted areas are all connected to the power grid and located within a radius of 200 m from the city. Therefore, the potential would increase if distributed power to remote areas were taken into consideration.

[Figure 5-1] Resource potentials of solar PV in Cameroon

5.2 Wind Power

40

The result of the investigation produced so far has indicated that the wind power reserve in Cameroon is not so high. The following figure [Fig 5-2] is a wind resource map constructed by the National Renewable Energy Center (CENER) based on the data of the wind conditions at a height of 10 m above the ground for the period 2008 to 2010. Another wind resource map is shown in [Fig 5-3], which was constructed by employing the Vaisala 3Tier Services global wind dataset at 80 m above the ground with a resolution of 5 km. Both data sets indicate that the suitable areas with relatively abundant potential and wind speeds of 5 m/s are limited to the north and far north regions; however, various areas of the coastal and mountainous regions have even higher wind speeds. MINEE (2016, p.142) classifies wind power as an inappropriate RE source for Cameroon, considering that the overall average wind power of the country is low at 4 m/s.

[Figure 5-2] Wind resource map of Cameroon (10m above ground, 10km resolution)

Source: Quoted from Spain National Renewable Energy Center (CENER), and MINEE (2016, p.142)

40 This paragraph was excerpted from PDER (2016) and IRENA (2016) and summarized.

[Figure 5-3] Wind resource map of Cameroon (80m above ground, 5km resolution)

Source: Quoted from 3Tier Services global wind dataset, and MINEE (2016, p.141)

As mentioned above, IRENA (2014) applied the same estimation standard applied to solar PV to wind power. Its prediction was based solely on the technical potential of the suitable regions (excluding all the unsuitable regions) across the overall territory of Cameroon based, on power generation capacity. The results show that wind power resource potential of region with a capacity factor of over 30% could potentially produce power amounting to 15.9 TWh/year. The potential production increases to 979 TWh/year when regions is extended to a capacity factor of over 20%. Few regions had a capacity factor of more than 40%.

5.3 Small Hydropower

based on data from PDER, consultants estimated that power generation facilities of 340 MW would be possible at 260 potential sites (MINEE, 2016, p. 144). In addition, Teikounegning (2010) suggested a further 34 potential sites for small hydropower generation in the western region of Cameroon only.41 Tractebel Engineering, commissioned by the French Development Agency, released a report titled Study on the development of hydroelectricity of small and medium power in Sub-Saharan Africa42 in December 2014. The study analyzed the potential of small and medium-size hydropower (installed capacity of 10 MW to 50 MW) of Cameroon. There are 25 dams in 11 rivers43 that have the potential for medium-size hydropower, with a combined generating capacity of 792 MW. Several countries, including the US, classify hydropower facilities with a capacity factor of up to 50 MW as small hydropower, and most international organizations recognize both small and large hydropower as RE without differentiating between them. So, Cameroon may consider extending the standard for small hydropower up to 50 MW generation capacity.

41 Quoted from Global Village Cameroon (2012, p. 20).

42 The French title of this report is Etude sur Le Developpement de l'Hydroélectricité de Petite etMoyenne Puissance en Afrique Subsaharienn.

43 These 11 rivers are Faro, Vina Nord and tributaries, Katsina, Metchum, Manyu, Munaya-Sud, Mbam and tributaries, Noun, Nkam, Makombe, and Nyong.

[Figure 5-4] Major rivers in Cameroon

[Figure 5-5] Small hydropower sites in Cameroon

Source: MINEE (2016, p.146)

5.4 Biomass

This study calculated the resource potential of biomass energy separately. The theoretical resource potential calculated in this study44 for generation capacity indicate that the annual potential of forest products, agricultural by-products, and livestock manure was 39,707 TWh, 37.9 TWh, and 16.5 TWh, respectively. Biomass from forest products and agricultural by-products could be used as solid fuel and cattle manure used to produce biogas through the anaerobic digestion method. The practical application potential was calculated as follows. Considering the growth cycle of forest products as 30 years on average, the potential amount of resources that could be used sustainably is 1/30 of the total, depending on the yearly accumulation of trees. As regards the geographical factor, the study assumed that only 1% of the country was available. Potentially, a total of 4.6 TWh power could be generated annually from forest biomass by using this 1% resource and applying an efficiency rate of 35%. As regards agricultural by-products and cattle manure, the study assumed that they these resources were scattered geographically and that the by- products were available. Therefore, it was assumed that only 10% of each potential calculated theoretically would be available. Assuming an efficiency rate of 35% and using these potential sources for power

44 See the separate report, Potential Survey for Renewable Energy Master Plan in Cameroon: Final Report.

▲: Small Hydro sites (size indicates potential installed capacity)

generation indicate that 1.3 TWh and 0.6 TWh, respectively, could be generated annually. The potential amount of generated from the three types of biomass is 6.5 TWh per year. However, including the by- products of crops not considered in this study probably would increase the total potential power capacity.

[Figure 5-6] Biomass resource potential in Cameroon

Source: MINEE (2016, p.138)

■: Biomass sites (size indicates potential installed capacity)

5.5 Summary

The table below comprehensively summarizes the RE resource potential of Cameroon. The RE resource potential could be increased if biomass or small hydropower were examined with more information and data. As regards biomass, the agricultural by-products of only a few crops were selected as the subject of this assessment. Therefore, expanding to all suitable crops would increase the bioenergy resource potential.

The resource potential of small hydropower across the country has not been examined; however, conducting assessment on this resource could increase the amount of hydropower resource potential significantly.

This assessment has a limitation in calculating regional RE resource potential, as the regional statistics are insufficient. In future, it is necessary to include calculations on solar PV and wind power by region, employ the simulation based on weather and climate satellite data, and calculate the regional resource potential across the country. In addition, appropriate assessment must be conducted to calculate the resource potential of biomass by region, by making regional biomass statistics, and accumulate time-series data. As regards small hydropower, the study and measurement need to cover the whole country to identify regional resource potential. Likewise, the information on resource potential of each RE in regional level needs to be collected. Such information would facilitate exploring projects that are feasible by region and attracting foreign investors.

[Figure 5-7] Summary of renewable energy potential in Cameroon

Source: MINEE (2016, p.138)