SOLAR PV – DIESEL HYBRID

Win-win business models and PPA arrangement

 1.
What is a solar PV – Diesel
Hybrid system
How does it work?
Basic Components
 Hybrid System in a Grid Network
G GRID FOLLOWER

L
L
L
G
GRID FORMING - G GRID FOLLOWER
MASTER

H GRID FOLLOWER

H Hybrid Power Plant

L
L G Generator – any type
L
L Load – Substation/Feeder
Topologies of Hybrid Systems
Five major categories (*):
1. Single fixed master – converter
2. Single fixed master – synchronous generator
3. Single changing master
4. Multi-master synchronous generator dominated
5. Multi-master converter dominated

(Based on : IEA Photovoltaic Power Systems Programme (PVPS) Task 11)

* http://www.iea-pvps.org/index.php?id=227&eID=dam_frontend_push&docID=1127
 Topologies of Hybrid Systems
Single fixed master – inverter

• One grid forming converter-based

generator

• Typically a battery innverter

• Mostly for small systems that

combine solar PV and/or wind with
battery storage

• Diesel genset as backup only

• Small grid (kw size) up to ~ 1MW

 Topologies of Hybrid Systems
Single fixed master – generator

• One grid forming synchronous generator

• Typically a rotating generator (diesel/gas

genset or biogas generator)

• Other generators are grid following

• Generators can be distributed or in a

single location

• Any size, but larger than ~25MW may be

more efficient with other technologies
other than diesel genset
 Topologies of Hybrid Systems
Single changing master

• Two or more generators are

assigned as grid formers

• Only one is the master at any time

• Only one grid forming generator

• Both energy storage and a

synchronous generator are present

• Synchronous generator can be

turned off, but when on it is the grid
forming
 Topologies of Hybrid Systems
Single changing master - variant

• DC couple variant

• Automatic transfer switch controls

whether the inverter or the
synchronous generator is the grid
forming

• Flexible operating modes

 Topologies of Hybrid Systems
Multi-master synchronous
generator dominant

• Two or more synchronous

generators are assigned as grid
formers and operate in parallel

• Energy storage is used at higher

intermittent penetration in grid
following mode (e.g. for grid
frequency support)

• Minigrid size or larger

 Topologies of Hybrid Systems
Multi-master inverter dominated

• Two or more inverters are assigned

as grid formers and operate in
parallel

• System is inertia-less or has very

low inertia.

• Most advanced topology, not yet in

common use

• Any mix of generation technologies

can be applied
Types of Solar PV – Diesel Hybrid
Systems

Typical system

Solar PV Storage

Diesel Genset Controller

The Goal – Minimizing LCOE
 2.
SIZING THE SYSTEM
What size is the hybrid system
Which Size?
Is it the installed/available
diesel generator size?
What if there is battery
inverter installed?
Is it the installed solar PV
system size?
Which solar PV system size:
- Installed grid inverter AC
capacity?
- Installed total solar PV
panel capacity?
- Installed battery inverter
AC capacity?
Which Size?
Is it the installed/available Is it the total generation
dispatchable power? capacity?

Combination of battery Include all possible

inverter and solar PV?
What if there is only limited
battery capacity (stabilizing
only : ~15 to 60 minutes)?
generation such as grid
inverter, battery inverter,
synchronous generator?

Does the PPA contract cover

dispatchability and how to
calculate the project
revenues?
How was it designed?
Load profile matching Penetration ratio

Was load profile carefully Or was it designed based on

considered? the penetration ratio to the
existing diesel generation?
Was the system designed to
reduce fuel costs by sizing
the generators to the load?

Does it consider project

revenues from the solar sales
and maximizes solar power
utilization?
Penetration Ratio of VRE Generation
Energy Penetration (%)
Ratio of annual VRE
generation energy to annual
total energy demand on the
grid (excludes any net
exports)
Capacity Penetration (%)
Installed capacity of VRE as a
percentage of total installed
generation.
gives a relative measure of
the VRE power plant to the
rest of the system
DOES NOT capture the
capacity factor or
operational penetration
levels.
Penetration Ratio of VRE Generation
Maximum instantaneous
penetration (%)
Ratio of maximum observed
VRE power plant energy to
demand (including exports)
over a defined period
(typically one year) at any
instant in time (typically on
an hour/ half hourly
intervals).
Söder Metric
The ratio of maximum solar
output (installed inverter
capacity) to minimum
demand plus maximum
export.
In an isolated grid, there is
no possibility of export

Captures observed values,

rather than theoretical
Why is it important?
Legal classification Reference and comparisons

Foreign investment How do we compare the

allowance various hybrid systems when
often the size mentioned is
Permit requirements based on different
measurements
Project financing
Investment, LCOE and cost
Taxes and other benefits savings references are not
comparable
Recommendation
Installed synchronous generator size / inverter output (net AC output)

Shows the ratio of available synchronous generator compared to the inverter

output of the power plant
 3.
BUSINESS MODELS
Win-Win Solution
Risks
Whose responsibility?
Types of Risk

Diesel Fuel Costs Variability of Grid Availability

Solar Input
Diesel fuel cost is Grid availability
unpredictable in the Solar and Wind are (network or generator
open market and can be Variable Renewable issues) can be a
difficult to project Energy (VRE) sources. problem for project
The design of the developers and out of
In today’s Indonesian system determines how their control
situation, the to mitigate this risk
government through PLN should cover this
PLN should cover this The project should risk since they’re fully
risk cover this risk in the responsible for the grid
PPA requiring a certain operation in Indonesia
ramp up/down rate
requirement with
penalties IF there are
other generators on the
grid
Types of Risk
Power Curtailment
Due to grid stability, solar PV
systems can be curtailed
significantly
Even with hybrid systems,
curtailment can still happen if the
generators are not sized properly
Excess solar PV power has
nowhere to go in smaller isolated
grids
Future Growth
Sizing for future growth in an
isolated grid is important for grid
performance
Who bears the cost of oversizing the
system for future growth?
What happens when additional
power plants are added that are not
compatible with the previous
penetration ratio of VRE power
plants (such as solar) ?
Example of Curtailment
Example of curtailment including future proofing risk
PPA Arrangements
Finding the right match between PLN’s needs in
isolated grids and the available technologies
ESCO Model
Shared savings
Project developer MUST be
allowed to design the system
to the load profile
Initial design prioritizes cost
savings from total
generation expenditure
Total control of all
generation preferred
Most of the risks are on
the project owner
If allowed, the project is
responsible for all generation
in the grid
If the system does not
perform as expected, the
project owner loses money
from the projected income
Grid stability is protected
since dispatchable
synchronous generation is
always available (no savings)
Combined Revenue Model
Follows current processes
Solar PV energy sales follow
MEMR regulations (currently
MEMR regulation 50/2017)
Synchronous generation is
rented from the project
Fuel costs are passed
through to PLN
Most of the risks are on the project
owner
System designed for prioritizing solar PV
energy sale
Synchronous generation only available for
smoothing and stabilizing the solar input
and spinning reserve
Grid stability protected because the
project controls its own spinning reserve
as defined in the PPA contract
Optional : synchronous generation
available for various level of dispatchability
Dispatchable Hybrid System
Follows current processes
Solar PV energy sales follow
MEMR regulations (currently
MEMR regulation 50/2017)
Synchronous generation is
rented from the project
Fuel costs are passed
through to PLN
Most of the risks are on the project
owner
System designed for dispatchability of the
power plant according to PLN grid’s needs
Synchronous generation available at any
time for dispatching and load following
Grid stability protected because the
project controls its own spinning reserve
as defined in the PPA contract
PPA contract controls ramp up/down rate
with penalties IF there are other
generators on the grid
 5.
FINAL THOUGHTS
Putting it all together
The Business of Hybrids
Win-win solution

Sizing to the demand Grid analysis Revenue and risk sharing

Load profile need to be
known and sizing as well as
design of the hybrid power
plant needs to be matched.
PPA agreement need to
reflect this
What is the hosting
capacity of the grid for
Variable Renewable Energy
generation? What are the
issues limiting this
capacity? How can hybrid
systems solve this limit?
Identifying PLN’s limitations
and the grid’s conditions is
a key step in developing
the right business model.
The final agreement needs
to reflect that the project
solves relevant grid issues

Alignment of interests
Project developer need enough revenues to
cover their costs whereas PLN is limited in its
capacity to pay PPAs even from renewable
energy. If the business model and the design
of the agreement can reflect this alignment, it
creates a mutually beneficial framework.

Example : PPAs need to include ramp up/down

rate and its costs to PLN can be discounted
when transferred to the developer
Thanks!
Any questions?
You can find me at:

http://linkedin.com/in/andresusanto/