2011
The Project of Bikenibeu Solar PV grid Connected System
Energy Planning Unit
Pacific Environment Community Fund Ministry of Public Works and Utilities
11/15/2011
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Project title: THE PROJECT OF BIKENIBEU SOLAR PV GRID CONNECTED SYSTEM
Approved Concept Note (date and reference): November, 2010
Name of implementing agent(s): Public Utilities Board under the Ministry of Public Works and Utilities
Project location: Bikenibeu, Tarawa, Rep of Kiribati
Proposed starting date: January, 2012
Project duration: Two (2) years
Amount requested from PECF (USD$): USD $4,000,000
Government inputs: Will provide land area for installation and Overall Project management and coordination.
Implementing agent inputs: Overall project implementation & responsible of management, operation and maintenance of facilities completed
Other donor inputs: No other donors have been approached for funding assistance for this project
Brief summary description of the project proposal: Install 400 kW Solar PV grid connected system in Bikenibeu power plant
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1. BACKGROUND AND JUSTIFICATION Electricity grid for Kiribati’s capital, South Tarawa and Betio, is provided by the government owned statutory utility, Public Utilities Board (PUB), with the total power generation capacity of 5.45 MW. The diesel generator sets (hereinafter “gensets”) are distributed between two stations, 3 gensets at Bikenibeu Power Station with a total capacity of 4.2MW, and 1 genset at Betio Power Station with capacity of 1.25MW. The load is shared between the two stations and household electricity access is around 90%. However, there is an emerging challenge in meeting the rising price of diesel for these generators, as well as to contribute reduction of global CO2 emission for Kiribati being in the frontline of vulnerability to climate change and sea level rise caused by global warming that has been posing a serious national danger. The Government of Kiribati (hereinafter “GOK”) has long had a policy of utilizing renewable energy for utilization of locally available resources in order to depart from heavy reliance to imported fossil fuels in urban and rural electrification. The GOK through its Kiribati Energy National Policy (KNEP) has a vision of “available, accessible, reliable, affordable, clean and sustainable energy options for the enhancement of growth and improvement of livelihoods in Kiribati”. The aim of the GOK is to develop and utilise renewable energy and adopting energy efficiency programs as a means for energy security, and indeed as a means of national security by contributing to reduce CO2 emission, thus, buffering speed of global warming that has been posing a national threat. The solar energy has been proven as a more commercially feasible option than other sources of renewable energies in Kiribati as confirmed from the on-going small solar home systems since 1992 that began by JICA’s solar project electrifying 56 households on North Tarawa. The project is now taken over by EU by electrifying for further 250 households in the rural areas. Up to date there are 2000 solar systems currently installed in the rural areas with an overall capacity of 258.5kW. With the funding from the PEC Fund, originated from funding assistance by the Government of Japan, therefore, it is an excellent opportunity for the GOK to progress into larger scale utilisation of solar energy by introducing Solar PV grid connection into the country. It is also an excellent opportunity for GOK to improve, expand and strengthen the existing renewable energy infrastructures and energy planning, and most importantly it will be the first and large step for Kiribati towards the use of clean energy to combat climate change.
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2. OBJECTIVES a) Development objectives Issues identified by the KNEP, the Pacific Island Framework of Action, and Pacific Islands Energy Policy and Strategic Project 2008 were taken into consideration when designing the proposal to ensure the proposal of the most effective activities under the project. The project seeks to address the following key problem areas: Environment risk: Diesel generators pose risk to environment by emitting greenhouse gases as well as could be a pollutant to our scarce groundwater source. Energy security: There is a heavy reliance on fossil fuels which are subject to rising prices. Supply and Demand: Electricity needs for South Tarawa and Betio is constantly increasing. High Electricity Tariff: Kiribati has one of the highest electricity tariffs in the Pacific. Human and Institutional Development: Lack of trained staff on the field of large scale Solar PV system and management of large scale solar PV system. b) Immediate objectives The high and volatile cost of imported fossil fuels is a huge financial burden on the GOK, in addition to the environment risk inherent in consuming petroleum fuels. The proposal will minimise dependency of imported fossil fuels for the electrification of South Tarawa and Betio, thus, reducing CO2 emission. In addition, the GOK considers the development of Renewable Energy as essential part of its development policy to stem dependency on imported fuel and improve the quality of life and economic conditions by looking at alternatives to minimise risk of shortage of fossil fuels for its growing energy needs. The provision of electricity through large-grid connect solar PV systems will be a key contribution to the effort to improve Kiribati socio-economic conditions. The population of South Tarawa will be the main final beneficiaries. To date their economic development has been constrained by the hardship caused by climate change, and the rise in commodity price and electricity tariff because of remoteness from the regional or international trade centres. The proposal will address the needs of these populations through adapting clean and affordable energy. PUB has been looking for an alternative source to minimise its carbon footprint and to help ease its daily fuel consumption and the increase in demand. However, there are insufficient funds available for investment in solar systems, training of technicians and managers for solar electrification. This proposal addresses these needs and constrains of PUB which in turn allows PUB as a utility to provide electricity from Renewable Energy sources.
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3. PROJECT IMPLEMENTATION AND MANAGEMENT PLAN a) Expected project results The current environmental damage caused by 4 generators in Bikenibeu and Betio is enormous. Some of the chronic impacts include contamination of groundwater, generation of waste, greenhouse gas production, etc. Burning 500,000litres of diesel fuel per month generates 1,350,000kg of CO2, not taking into account the amount of lubricant materials that are also burnt during power generation. Following table shows the anticipated saving when solar energy is utilised:
Fuel Fuel Energy Source Saving ($/yr) Consumption/yr cost/year generation/yr Diesel A$298,364 & a Genset 6,000,000ltrs A$7,620,000 18,000,000kW/hr cut of (5.45MW) 805,586.40kg of Solar Free Sunlight 317,167kW/hr CO2 (400kW) Source: PUB data Note: -the price of fuel is A$1.27/ltrs; burning 1 litre of diesel produces 2.7kg of CO2 ; the calculated energy generated from solar is an estimate obtained from Sharp Corporation b) Project activities and work plan The activities are segmented into three (3) phases. BUDGET INSTALLABLE PV SUM PHASE LOCATION SITE (US$) PV (kWp) (kWp) Bikenibeu, PUB ONE 1,800,000 180 180 Power Station Betio, Sport TWO Complex Building 1,500,000 150 330 Toproof Betio, KIT New THREE 70,000 70 400 Building Toproof Source: WB Inception Report for PV feasibility Study
The proposal install PV power capacity is 400kWp, three sites (locations) to build and install the PV grid connected system. Bikenibeu, PUB Power Station will cater for 180kWp generation PV System. The PV modules are to mount on the racks structures at PUB field compound. For Betio Site, the PV modules are to be installed on the two (2) buildings toproof. The Sport Complex Building will take-up 150kWp, the KIT new Building will have the remaining PV modules generation of 70kWp. Betio Sport Complex Building and KIT new Building are recommended to position for PV modules on top of each roof for their durable structures. The time schedule for implementing this Project is two (2) years period.
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BUDGET IMPLEMENTATION SCHEDULE IN US$ Outcomes to Planned Implementing Funds required to achieve outcomes be achieved outputs/activities to Agent/Partners (US $) in period of reach outcomes 201 3 201 4 project Objective: Increased renewable energy capacities in Bikenibeu
Solar Site Survey, PV generation 305,000 System design systems including the cost of GOK, Contractor 319,000 installed installation services
Procurement of all materials including the cost of 3,173,000 GOK 103,000 transportation to Kiribati.
Operation and Maintenance Training GOK, Contractor 50,000 50,000 Work in Kiribati/Japan Project total 3,528,000 472,000
Plus Indirect Costs Include indirect cost to above
GRAND TOTAL 4,000,000
c) Project beneficiaries The final beneficiaries will be the population of south Tarawa. Specific target group/beneficiaries will be also be; Public Utilities Board (PUB) staff New employment and business opportunity for local population Consumers from the expected reduction in electric tariff The Government of Kiribati; 1. By employing clean energy to demonstrate Kiribati’s response to mitigate climate change and protecting its environment from the impact of pollution and 2. Through avoided cost of petroleum import and provision of electricity supply
666 d) Implementing agent and management of project
Description of the Proponents for PV-Grid Project
WORKING COMMITTEE
ENERGY PLANNING UNIT (EPU) CONTRACTOR
PUBLIC UTILITIES BOARD (PUB)
Participant Acronym Institution Work Program/Task Responsible Officer Working KIPVGP Government Project coordination & Permanent committee Agency decision making Secretary Energy MPWU Government Overall Project Ag. Energy Planning Unit Agency management & Planner coordination Public Utility MPWU Government Overall project Chief Executive Board owned implementation & Officer statutory responsible for the body delivery of the respective components Ministry of MFED Government Disbursement of funds Permanent Finance & Secretary Economic Development KIPVGP: Kiribati PV-Grid Project MPWU: Ministry Public Works & Utilities
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The Contractor is assigned for the work programme or task as: 1) Supervise civil, structural electrical, equipment installation, 2) Prepare design/planning of plant on site, and 3) Training for both Operation and Maintenance.
4. PROJECT MONITORING AND EVALUATION The Contractor, being the implementation agency, shall assign a project manager for the project. The project manager will submit copies of monthly report to the PUB and to the PEC Fund Project Coordinator who is in charge of the project and those benefiting from the project. The monthly reports will contain details of expenditure, and project progress. A general project monitoring and evaluation plan is proposed to ensure all proposed activities occur as planned. The whole project planning and execution will take approximately two years.
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5. BUDGET
Total budget for full turn-key base is required US$4,000,000 as stated below. BUDGET BREAK-DOWN IN US$ PERIOD ITEM 2012 2013 1. Project Personnel i) International Professional (TA) 150,000 150,000 Subtotal (Personnel): 150,000 150,000 i) Administrative Support 0 0 ii) Official Travel 10,000 10,000 iii) National Professional (TA) 45,000 45,000 iv) Local Labours 100,000 100,000 v) Operational/Maintenance & Repair 0 14,00 of equipment Component Total 305,000 319,000 2. Training i) Group Training (Skilled and Semi- 25,000 25,000 skilled) ii) In-Service Training/Study tour) 25,000 25,000 (Professional) Component Total 50,000 50,000 3. Equipment i) Expendable Equipment 3,070,000 0 ii) Non-expendable Equipment 0 0 Component Total 3,070,000 0 4. Miscellaneous i) Contingency 100,000 100,000 ii) Indirect Costs 0 0 iii) Project Audit 3,000 3,000 Component Total 103,000 103,000 3,748,000.00 252,000 Grant Total US $ 4,000,000
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