Cover image for From the Bottom Up : How Small Power Producers and Mini-Grids Can Deliver Electrification and Renewable Energy in Africa.
From the Bottom Up : How Small Power Producers and Mini-Grids Can Deliver Electrification and Renewable Energy in Africa.
Title:
From the Bottom Up : How Small Power Producers and Mini-Grids Can Deliver Electrification and Renewable Energy in Africa.
Author:
Tenenbaum, Bernard.
ISBN:
9781464801112
Personal Author:
Physical Description:
1 online resource (395 pages)
Series:
Directions in Development
Contents:
Front Cover -- Title Page -- Copyright -- Contents -- Foreword -- Acknowledgments -- About the Authors -- Abbreviations -- Overview -- The Centralized and Decentralized Tracks to Electrification -- What Are Small Power Producers and Distributors? -- Regulating SPPs -- Regulating Main-Grid-Connected SPPs -- Regulating SPPs and Mini-Grids That Sell to Retail Customers -- Preparing for the Arrival of the Main Grid -- From Broad Strategy to Ground-Level Implementation -- Chapter 1 Introduction -- Abstract -- Africa's Two-Track Approach to Rural Electrification -- Our Purpose and Approach -- What Are the Typical Starting Conditions in Africa? -- Whose Regulatory Decisions? -- Acknowledging Controversies and Understanding Different Vocabularies -- Regulation: The Problem or One Part of the Solution? -- Two Other Important Success Factors -- Organization of the Guide -- Chapter Highlights -- Notes -- References -- Chapter 2 Small Power Producers, Small Power Distributors, and Electrification: Concepts and Examples -- Abstract -- What Are Small Power Producers? -- The Four Main Types of Grid and Off-Grid SPPs in Africa -- Combinations of Cases -- Purchases As Well As Sales -- Mini-Grids and SPPs: A Clarification -- Which Types of SPPs Are Likely to Achieve Commercial Viability? Some Early Evidence from Tanzania -- What Are SPDs? -- Electrification: What Is It and How Can It Be Measured? -- Defining Electrification as Connections -- Defining Electrification as Needs Served -- The Traditional Electrification Ladder Approach and Its Weaknesses -- Measuring Electrification by Its Attributes -- Measuring Electrification: From Theory to Practice -- Notes -- References -- Chapter 3 The Regulation of Small Power Producers and Mini-Grids: An Overview -- Abstract -- What Is Regulation? -- Three Types of Regulatory Decisions That Affect SPPs.

The Importance of Regulatory Process -- Light-Handed Regulation: When It Works and When It Doesn't -- To Regulate or Deregulate? A Specific Example -- Who Should Regulate SPPs and Mini-Grids? -- Notes -- References -- Chapter 4 Regulatory Processes and Approvals: Who Approves What, When, and How? -- Abstract -- The Key Approvals Required: Electricity Sector-Specific versus General Approvals -- A Successful Example: The Regulatory Process in Sri Lanka -- Should Resale of Provisional Approvals, Final Permits, or Licenses Be Allowed? -- Licensing: Does the SPP Have a Legal Right to Exist? -- Recommended Characteristics of a Good Regulatory Review and Approval System -- Notes -- References -- Chapter 5 The Regulatory Treatment of Subsidies, Carbon Credits, and Advance Payments -- Abstract -- Types and Sources of Subsidies Available to SPPs and Their Customers -- Regulating Subsidies: The Key Recommendation -- Subsidies for Connection Charges and Costs -- Cross-Subsidies in Tariffs -- Revenues Earned from Carbon Credits through the Clean Development Mechanism or Other Carbon Credit Programs -- Advance Payments to Close the Equity Gap -- Notes -- References -- Chapter 6 Regulatory Decisions for Grid-Connected Small Power Producers -- Abstract -- Comparing the Purchase Agreements of SPPs and Independent Producers -- Should the Power-Purchase Agreement Include a "Deemed Energy" Clause? -- Tariffs for Backup Power Purchased by the SPP -- Should the SPP Have the Option of Not Entering a Backup Capacity Contract? -- Notes -- References -- Chapter 7 Grid-Connected SPPs: Creating Workable Feed-In Tariffs -- Abstract -- What Are Feed-In Tariffs? -- The Two Principal Methods for Setting FITs in Developing Countries -- Local Currency versus Hard Currency -- Major FIT Implementation Questions and Issues -- Who Should Pay the Extra Costs of FITs?.

Donor Top-Ups of FITs -- Walking Up the Renewable Energy Supply Curve: A Recommended Strategy -- Notes -- References -- Chapter 8 The Technical and Economic Rules Governing Grid-Integration Interconnections and Operations -- Abstract -- Basic Terms and Concepts -- Standardizing the Process for SPPs to Interconnect to a National or Regional Grid -- Scope of the Engineering Standards for Interconnection -- Paying for Interconnection Costs -- Successful Integration of SPPs into the Grid: Technical and Commercial Requirements -- Factors to Consider When Connecting to an Isolated Mini-Grid with Existing Diesel Generators -- Notes -- References -- Chapter 9 Regulatory Decisions for Small Power Producers Serving Retail Customers: Tariffs and Quality of Service -- Abstract -- Setting Retail Tariff Levels: Concepts and Cases -- Cost-Reflective Tariffs for Isolated SPPs: How Can the Cost-Revenue Gap Be Closed? -- What Can a Regulator Do to Promote the Commercial Viability of Isolated Mini-Grids? -- Tariff Levels for Community-Owned SPPs -- Setting Tariff Structures: Concepts and Cases -- Should Tariffs Be Prepaid or Postpaid? -- Alternatives to Setting Retail Tariffs on a Case-by-Case Basis -- Setting Quality-of-Service Standards -- Notes -- References -- Chapter 10 When the Big Grid Connects to a Little Grid -- Abstract -- From Broad Strategy to Ground-Level Implementation -- Recommendations for When the Big Grid Arrives -- The Fate of Physical Assets in Each Option -- Creating a Viable SPD Option -- The Importance of the Distribution Margin -- Transitioning from an Isolated to a Main Grid SPP: Technical Issues -- The Technical Requirements of Shifting from Isolated to Grid-Connected Operation -- Islanding -- Notes -- References -- Chapter 11 Final Thoughts -- Abstract -- What Else Is Required for a Successful SPP Program? -- To Regulate or Not to Regulate?.

Where to Go from Here -- Notes -- References -- Appendix A Hybrid Small Power Producers -- What Are Hybrid Power Systems? -- Should Hybrid SPPs on Isolated Mini-Grids Be Allowed? -- Should Grid-Connected Hybrid SPPs Be Allowed? -- Notes -- References -- Appendix B Conversion of Flat Monthly Charges to per-kWh Charges -- Appendix C Technical and Commercial Quality-of-Service Standards in Rural and Urban Areas of Peru -- Quality of Supply and Quality of Product -- Quality of Commercial Service -- Reference -- Appendix D Calculating the Effect of Cost-Reflective Technology-Specific Feed-In Tariffs on Retail Tariffs -- Sri Lanka -- Thailand -- References -- Appendix E Evaluation of Risk Allocation in a Power-Purchase Agreement for a Mini-Hydro Project in Rwanda -- Appendix F Feed-In Tariff Case Studies: Tanzania, Sri Lanka, and South Africa -- Tanzania's Feed-In Tariffs -- Sri Lanka's Feed-In Tariffs -- South Africa's Feed-In Tariffs and Competitive Procurements -- Notes -- References -- Appendix G Topping Up Feed-In Tariffs by Donors: Key Implementation Issues -- Eligible Renewable Technologies -- Uniform versus Particularized Top-Ups -- Disbursement -- Selection -- Relationship to Carbon Credits -- Top-Up, Buy-Down, or Both? -- Extra Top-Up for Electrification? -- Guarantees of Payment -- Concessional versus Market Financing for Equity and Debt -- References -- Glossary -- Bibliography -- Regulatory and Policy Documents from Countries with Small Power Producer Programs -- Reports, Studies, and Presentations -- Other Works or Communications Referenced -- Boxes -- Figures -- Tables -- Back Cover.
Abstract:
Most Sub-Saharan African countries try to promote rural electrification through both centralized and decentralized approaches. This guide focuses on the decentralized approach, providing practical guidance on how small power producers and mini-grid operators can deliver both electrification and renewable energy in rural areas. It describes four basic types of on- and off-grid small power producers, as well as several hybrid combinations that are emerging in Africa and elsewhere. The guide highlights the ground-level regulatory and policy questions that must be answered by electricity regulators, rural energy agencies, and ministries to promote commercially sustainable investments by private operators and community organizations. Among the practical questions addressed is how to design and implement retail tariffs, quality of service standards, feed-in tariffs, and backup tariffs. The guide also analyzes the regulatory implementation issues triggered by donor grants and so-called top-up payments. It provides a primer for nonengineers on interconnection and operating standards for small power producers connected to main grids and isolated mini-grids. It analyzes whether the option of small power distributors, used widely in Asia, could be employed in Sub-Saharan Africa, and addresses two often ignored questions: what to do 'when the big grid connects to the little grid' and how to practice light-handed regulation. Finally, the guide considers the threshold question of when to regulate and when to deregulate tariffs. All these implementation issues are presented with specific ground-level options and recommendations rather than just general pronouncements. In addition, to make the discussion more useful to practitioners, the guide provides numerous real-world examples of successful and unsuccessful regulatory and policy actions taken in Kenya, South

Africa, and Tanzania, as well as Nepal, Sri Lanka, and Thailand. Many of the decisions are inherently controversial because they directly affect the economic interests of investors and consumers. The guide highlights rather than hides these real-world controversies by drawing upon candid comments of key stakeholders-national utility managers, mini-grid operators, government officials, and and consumers.
Local Note:
Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2017. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.
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