IRENA Innovation Outlook Minigrids 2016

INNOVATION
OUTLOOK
RENEWABLE
MINI-GRIDS
Copyright © IRENA 2016
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Citation: IRENA (2016), Innovation Outlook: Renewable Mini-grids, International Renewable Energy Agency, Abu Dhabi.
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Acknowledgements
IRENA would like to thank the following experts for their inputs to this report: Romina Arcamone (Trojan Battery),
Luis Arribas (CIEMAT), Juliana Baumgartl (Smart Hydro), Sara Dourado (TESE – Guinea Bissau), Janina Franco
(World Bank), Leia Guccione (Rocky Mountain Institute – RMI), Nikos Hatziargyriou (National Technical University
of Athens), Ernesto Macías (Alliance for Rural Electrification – ARE), Jamie Mandel (RMI), Chris Marnay (Lawrence
Berkeley National Laboratory), Matt Maroon (Aquion Energy), Kevin Meagher (Power Analytics), Terry Mohn (General
Microgrids), Stephen Phillips (Optimal Power Solutions), Martin Rothert (SMA), Claude Ruchet (Studer), Mehdi
Savghebi (Aalborg University), Pere Soria (Circutor), Rich Stromberg (Alaska Energy Authority), Salvador Suárez (ITC
Canarias), David Vilar (World Bank), Eric Wanless (RMI), Marcus Wiemann (ARE) and Jürgen Zimmermann (ABB).
This report benefited greatly from comments and suggestions by Dolf Gielen (IRENA), Ruud Kempener (former
IRENA), Emanuele Taibi (IRENA) and Salvatore Vinci (IRENA), as well as by the following experts from other
institutions: Jose A. Aguado (University of Malaga), Rafael Escobar Portal (Soluciones Prácticas) and Enrique
Garralaga (SMA Sunbelt Energy).
Report contributers: Mauricio Solano Peralta (Trama TecnoAmbiental), John Glassmire (HOMER), Marilena
Lazopoulou (Trama TecnoAmbiental), Kristina Sumner (HOMER), Xavier Vallvé (Trama TecnoAmbiental), Peter
Lilienthal (HOMER), Maria Ayuso (IRENA) and Francisco Boshell (IRENA).
For further information or to provide feedback: please contact IRENA at [email protected]
This report is available for download from: www.irena.org/publications.
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CONTENTS
FIGURES��IV
TABLES��VII
ABBREVIATIONS��IX
SUMMARY FOR POLICY MAKERS��1
GLOSSARY OF TERMS�� 13
1 INTRODUCTION��16
2 TYPES OF RENEWABLES-BASED MINI-GRIDS��19
3 DEPLOYMENT STATUS AND COSTS�� 21
3.1 Deployment of renewable mini-grids�� 21
3.2 Innovation beyond technology: New business models�� 23
3.3 Costs of renewable mini-grids��24
3.4 Benefits of renewable mini-grids��26
●●Benefits of AB (Autonomous Basic) service................................................................................................ 27
●●Benefits of AF (Autonomous Full service).................................................................................................... 27
●●Benefits of IC (Interconnected Community) application........................................................................ 27
●●Benefits of ILI (Interconnected Large Industrial) application............................................................... 28
4 STATE-OF-THE-ART TECHNOLOGIES��29
4.1 Plan and design��30
●●Mini-grid design.......................................................................................................................................................30
●●Resource planning................................................................................................................................................... 31
●●Load planning............................................................................................................................................................ 31
●●Key attributes............................................................................................................................................................ 31
4.2 Control, manage and measure (CMM)�� 31
●●Controls....................................................................................................................................................................... 32
●●Data communication and standards............................................................................................................... 33
●●Metering and monitoring.....................................................................................................................................34
●●Connections with equipment (interoperability) and other grids (interconnection).................... 35
●●Key attributes........................................................................................................................................................... 37
4.3 Store�� 37
●●Electrochemical storage......................................................................................................................................38
●●Mechanical storage.................................................................................................................................................41
●●Other storage...........................................................................................................................................................43
4.4 Convert��43
●●Grid-following inverters.......................................................................................................................................44
●●Grid-forming inverters..........................................................................................................................................44
●●Dual-mode inverters..............................................................................................................................................45
●●DC step-up and step-down (DC-to-DC conversion)................................................................................46
4.5 Consume��46
●●DC appliances and DC grids...............................................................................................................................46
●●The importance of demand-side management.........................................................................................48
●●The importance of energy efficiency..............................................................................................................48
●●Key attributes...........................................................................................................................................................48
4.6 Options for policy makers and developers��48
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5 TECHNOLOGY GAPS AND OPPORTUNITIES FOR INNOVATION�� 51
6 PROSPECTS FOR TECHNOLOGY INNOVATION�� 53
6.1 Plan and design�� 53
●●Priority Gap 1 – Standardised planning and design..................................................................................54
●●Indicators and summary of innovation impact...........................................................................................56
6.2 Control, manage and measure (CMM)��56
●●Priority Gap 1 – More-intelligent controls......................................................................................................58
●●Priority Gap 2 – Improved communications and standards..................................................................59
●●Priority Gap 3 – Improved metering and monitoring.............................................................................. 60
●●Priority Gap 4 – Simplify connecting equipment together....................................................................62
6.3 Store��66
●●Priority Gap 2 – More robust, lower maintenance technologies to reduce life-cycle costs for
storage................................................................................................................................................................................69
●●Priority Gap 3 – Improvements in long-term storage capability.........................................................70
●●Priority Gap 4 – Improvements in high-power output capability........................................................ 71
●●Indicators and summary of innovation impact........................................................................................... 76
6.4 Convert�� 76
●●Priority Gap 1 – Lower capital costs of converters.................................................................................... 76
●●Priority Gap 2 – Combine diverse functions in inverters........................................................................ 78
●●Priority Gap 3 – Improve efficiency, particularly at partial load........................................................... 78
●●Priority Gap 4 – More converter options for diverse renewable mini-grid markets.....................81
●●Indicators and summary of innovation impact............................................................................................81
6.5 Consume��81
●●Priority Gap 1 – Increased commercial availability of efficient end-uses..........................................81
●●Priority Gap 2 – Better tools for adapting consumption to energy supply (DSM).......................84
6.6 The renewable mini-grid of the future��86
●●Visualising the renewable mini-grid
of the future.................................................................................................................................................................... 90
6.7 Innovation leads to cost reduction of renewables-based
mini-grids�� 90
7 THE ROLE OF KEY PLAYERS IN DRIVING INNOVATION��91
7.1 The role of policy makers��91
●●Portfolio of policy instruments...........................................................................................................................91
●●Educational policies...............................................................................................................................................93
●●Regulatory policies.................................................................................................................................................93
●●Market policies.........................................................................................................................................................94
7.2 The role of private investors��94
●●Undertake fundamental research....................................................................................................................94
●●Pilot projects.............................................................................................................................................................95
●●Deploy mini-grids...................................................................................................................................................95
●●Transfer technology into the renewable mini-grid market....................................................................95
●●Participate in industry groups: develop standards and build relationships....................................95
7.3 The role of the non-profit sector and academia��95
8 CONCLUSIONS��96
REFERENCES��98
ANNEX 1: Detailed drivers for renewable mini-grids�� 116
ANNEX 2: Barriers to renewable mini-grid innovation��121
ANNEX 3: Worldwide deployment and stakeholders��125
ii I NN OVATIO N O U T LO O K :
ANNEX 4: Detailed patent review��127
CMM��128
●●Data communication......................................................................................................................... 129
●●Intelligent storage control............................................................................................................... 130
●●Measurements.......................................................................................................................................131
●●Mini-grid management......................................................................................................................132
●●User meters............................................................................................................................................133
Store�� 134
●●Electrochemical....................................................................................................................................135
●●Mechanical............................................................................................................................................. 136
●●Thermal....................................................................................................................................................137
●●Chemical................................................................................................................................................. 138
●●Electrical................................................................................................................................................. 139
Convert��140
●●DC-DC conversion............................................................................................................................... 141
●●AC-DC conversion.............................................................................................................................. 142
●●AC-AC conversion.............................................................................................................................. 143
Consume��144
●●Demand-side management........................................................................................................... 145
●●Energy efficiency................................................................................................................................ 146
●●Back-up...................................................................................................................................................147
Generate�� 148
●●PV.............................................................................................................................................................. 149
●●Wind......................................................................................................................................................... 150
●●Hydro.........................................................................................................................................................151
●●Biomass...................................................................................................................................................152
ANNEX 5: Indicators�� 154
Plan and design, CMM and consume�� 154
Store�� 154
Generate�� 154
Convert�� 154
ANNEX 6: Generation state of the art and outlook��155
State of the art in generation��155
●●Solar PV...................................................................................................................................................155
●●Wind turbines....................................................................................................................................... 156
●●Hydro turbines: run-of-river............................................................................................................157
●●Biomass technologies....................................................................................................................... 158
Prospects for generation innovation�� 159
●●Priority Gap 1 – Lower capital costs for generation.............................................................. 159
●●Priority Gap 2 – Reduce maintenance needs.......................................................................... 163
●●Priority Gap 3 – Improve efficiency and increase energy capture..................................164
●●Indicators............................................................................................................................................... 165
ANNEX 7: Renewable mini-grid price prediction: Modelling input summary�� 167
RE N E WA BLE M I N I - G RI DS iii
Figures
Figure S1: Mini-grid functionalities.........................................................................................................................................2
Figure S2: Expected cost reductions in lead-acid, advanced lead-acid, lithium-ion and flow
storage batteries by 2015, 2025 and 2035................................................................................................... 6
Figure S3: Expected cost reductions in grid-forming, grid-following and dual-mode converters
in 2025 and 2035......................................................................................................................................................7
Figure S4: Potential evolution of renewable mini-grids by 2025 and 2035...........................................................8
Figure S5: Unsubsidised cost ranges for renewable mini-grids from 2005 to 2035 for a 100%
renewable energy community system........................................................................................................... 11
Figure 1: A renewable mini-grid with DC distribution................................................................................................16
Figure 2: Plot of renewable fraction vs. levelised cost of energy for 2015........................................................ 25
Figure 3: Renewable mini-grid functionalities..............................................................................................................29
Figure 4: Communication standards within the electricity supply....................................................................... 33
Figure 5: Relationship between grid-following, grid-forming and dual-mode inverters.............................43
Figure 6: Top 10 countries for modelling and simulation patents filed from 2010 to 2014.........................54
Figure 7: Number of patents for plan-and-design technologies for all years prior to 2010
and for 2010-2014..................................................................................................................................................54
Figure 8: Top 10 countries for all CMM technology patents filed from 2010 to 2014.................................... 57
Figure 9: Number of patents for CMM technologies for all years prior to 2010
and for 2010-2014.................................................................................................................................................. 57
Figure 10: Top 10 countries for all storage technology patents filed from 2010 to 2014...............................65
Figure 11: Number of patents for storage technologies for all years prior to 2010
and for 2010-2014 ................................................................................................................................................65
Figure 12: Storage technology cost ranges in 2015, 2025 and 2035
depicted in USD/kW vs. USD/kWh................................................................................................................ 72
Figure 13: Top 10 countries for all conversion technology patents filed from 2010 to 2014........................ 75
Figure 14: Number of patents for power conversion technologies for all years prior to 2010
and for 2010-2014.................................................................................................................................................. 75
Figure 15: Commercialisation stage of various graphene-based applications.................................................. 77
Figure 16: Converter technology cost ranges in 2015, 2025 and 2035.................................................................80
Figure 17: Top 10 countries for all consumption /consume-function technology patents filed
from 2010 to 2014.................................................................................................................................................. 82
Figure 18: Number of patents for consumption / consume-function technologies for all years
prior to 2010 and for 2010-2014 ..................................................................................................................... 82
Figure 19: Conceptualisation of a mini-grid based on load requirements...........................................................84
Figure 20: The renewable mini-grid of 2025.................................................................................................................... 87
Figure 21: The renewable mini-grid of 2035....................................................................................................................88
Figure 22: Plot of renewable fraction vs. real levelised cost of energy for 2015, 2025 and 2035..............89
Figure 23: Technology readiness level................................................................................................................................92
Figure 24: Top 10 companies for CMM modelling and simulation patents filed from 2010 to 2014.........127
iv I NN OVATIO N O U T LO O K :
Figure 25: Number of patents for modelling and simulation technologies filed from 2010 to 2014........128
Figure 26: Top 10 companies for all CMM technology patents filed from 2010 to 2014................................128
Figure 27: Number of patents for CMM technologies filed from 2010 to 2013................................................ 129
Figure 28: Top 10 countries for CMM data communication patents filed from 2010 to 2014..................... 129
Figure 29: Top 10 companies for CMM data communication patents filed from 2010 to 2014................. 130
Figure 30: Top 10 countries for CMM intelligent storage control patents filed from 2010 to 2014........... 130
Figure 31: Top 10 companies for CMM intelligent storage control patents filed from 2010 to 2014.........131
Figure 32: Top 10 countries for CMM measurement patents filed from 2010 to 2014.....................................131
Figure 33: Top 10 companies for CMM measurements patents filed from 2010 to 2014..............................132
Figure 34: Top 10 countries for CMM mini-grid management patents filed from 2010 to 2014.................132
Figure 35: Top 10 companies for CMM mini-grid management patents filed from 2010 to 2014.............133
Figure 36: Top 10 countries for CMM user meter patents filed from 2010 to 2014..........................................133
Figure 37: Top 10 companies for CMM user meter patents filed from 2010 to 2014..................................... 134
Figure 38: Top 10 companies for all storage technology patents filed from 2010 to 2014.......................... 134
Figure 39: Number of patents for storage technologies filed from 2010 to 2014............................................135
Figure 40: Top 10 countries for electrochemical storage patents filed from 2010 to 2014..........................135
Figure 41: Top 10 companies for electrochemical storage patents filed from 2010 to 2014...................... 136
Figure 42: Top 10 countries for mechanical storage patents filed from 2010 to 2014.................................. 136
Figure 43: Top 10 companies for mechanical storage patents filed from 2010 to 2014................................137
Figure 44: Top 10 countries for thermal storage patents filed from 2010 to 2014...........................................137
Figure 45: Top 10 companies for thermal storage patents filed from 2010 to 2014...................................... 138
Figure 46: Top 10 countries for chemical storage patents filed from 2010 to 2014....................................... 138
Figure 47: Top 10 companies for chemical storage patents filed from 2010 to 2014.................................... 139
Figure 48: Top 10 countries for electrical storage patents filed from 2010 to 2014....................................... 139
Figure 49: Top 10 companies for electrical storage patents filed from 2010 to 2014....................................140
Figure 50: Top 10 companies for conversion technology patents filed from 2010 to 2014.........................140
Figure 51: Number of patents for power conversion technologies filed from 2010 to 2014....................... 141
Figure 52: Top 10 countries for DC-to-DC conversion patents filed from 2010 to 2014................................ 141
Figure 53: Top 10 companies for DC-to-DC for conversion patents filed from 2010 to 2014..................... 142
Figure 54: Top 10 countries for AC-to-DC conversion patents filed from 2010 to 2014............................... 142
Figure 55: Top 10 companies for AC-to-DC conversion patents filed from 2010 to 2014............................ 143
Figure 56: Top 10 countries for AC-to-AC conversion patents filed from 2010 to 2014............................... 143
Figure 57: Top 10 companies for AC-to-AC conversion patents filed from 2010 to 2014............................144
Figure 58: Top 10 companies for all consumption technologies patents filed from 2010 to 2014 ��144
Figure 59: Number of patents for consumption technologies from 2010 to 2014.......................................... 145
Figure 60: Top 10 countries for DSM patents filed from 2010 to 2014................................................................. 145
Figure 61: Top 10 companies for DSM patents filed from 2010 to 2014.............................................................. 146
RE N E WA BLE M I N I - G RI DS v
Figure 62: Top 10 countries for energy efficiency patents filed from 2010 to 2014....................................... 146
Figure 63: Top 10 companies for energy efficiency patents filed from 2010 to 2014.....................................147
Figure 64: Top 10 countries for back-up patents filed from 2010 to 2014...........................................................147
Figure 65: Top 10 companies for back-up patents filed from 2010 to 2014...................................................... 148
Figure 66: Top 10 companies for all generation technology patents filed from 2010 to 2014................... 148
Figure 67: Number of patents for generation technologies filed from 2010 to 2014.................................... 149
Figure 68: Top 10 countries for solar PV patents filed from 2010 to 2014.......................................................... 149
Figure 69: Top 10 companies for solar PV patents filed from 2010 to 2014...................................................... 150
Figure 70: Top 10 countries for wind turbine patents filed from 2010 to 2014................................................. 150
Figure 71: Top 10 companies for wind turbine patents filed from 2010 to 2014...............................................151
Figure 72: Top 10 countries for hydro turbine patents filed from 2010 to 2014.................................................151
Figure 73: Top 10 companies for hydro turbine patents filed from 2010 to 2014............................................152
Figure 74: Top 10 countries for biomass technology patents filed from 2010 to 2014..................................152
Figure 75: Top 10 companies for wind turbine patents filed from 2010 to 2014..............................................153
Figure 76: Top 10 countries for all generation technology patents filed from 2010 to 2014......................160
Figure 77: Number of patents for generation technologies for all years prior to 2010
and for 2010-2014 ..............................................................................................................................................160
Figure 78: Cost of potential AB renewable mini-grid designs in 2015, comparing renewable
fraction (%) on the x-axis vs. levelised cost of energy (USD/kWh) on the y-axis..................... 167
fraction [%] on the x-axis vs. levelised cost of energy [USD/kWh] on the y-axis..................... 168
fraction [%] on the x-axis vs. levelised cost of energy [USD/kWh] on the y-axis..................... 168
vi I NN OVATIO N O U T LO O K :
Tables
Table S1: Types of mini-grids��3
Table S2: Status of deployment for different types of mini-grids�� 4
Table 1: Types of renewable mini-grids��20
Table 2: Renewable mini-grid deployment by region�� 22
Table 3: Table of unsubsidised cost ranges for renewable mini-grids from 2005 to 2015
for a 100% renewable energy community system��24
Table 4: Key benefits that renewable mini-grids provide��26
Table 5: Selection of tools for mini-grid design��30
Table 6: Selection of tools for resource planning�� 31
Table 7: Key attributes for plan-and-design technologies�� 31
Table 8: Key attributes for CMM technologies��36
Table 9: Summary of state-of the-art storage technologies and suitability
in different applications�� 37
Table 10: Summary of state of the art for lead-acid storage technologies��38
Table 11: Summary of state of the art for lithium-ion storage technologies��39
Table 12: Summary of state of the art for flow-storage technologies�� 40
Table 13: Summary of state of the art for flywheel storage technologies��41
Table 14: Summary of state of the art for grid-following inverters��44
Table 15: Summary of state of the art for grid-forming inverters��44
Table 16: Summary of state of the art for dual-mode inverters��45
Table 17: Key attributes for consumption technologies��48
Table 18: State of the art of renewable mini-grids��49
Table 19: Priorities to address for each mini-grid functionality�� 52
Table 20: Plan-and-design indicators��56
Table 21: CMM indicators��64
Table 22: Lead-acid storage technology indicators�� 73
Table 23: Advanced lead-acid storage technology indicators�� 73
Table 24: Lithium-ion storage technology indicators�� 73
Table 25: Flow storage technology indicators�� 74
Table 26: Flywheels storage technology indicators�� 74
Table 27: Grid-forming converter indicators��80
Table 28: Grid-following converter indicators��80
RE N E WA BLE M I N I - G RI DS vii
Table 29: Dual-mode converter indicators��80
Table 30: Consume indicators��85
Table 31: Summary of support required for R&D opportunities��86
Table 32: Table of unsubsidised cost ranges in real USD for renewable mini-grids
from 2005 to 2035 for a 100% renewable energy community system��88
Table 33: Policy options to drive innovations��91
Table 34: Political and institutional drivers for renewable mini-grid deployment and innovation��117
Table 35: Economic drivers for renewable mini-grid deployment and innovation�� 118
Table 36: Social drivers for renewable mini-grid deployment and innovation�� 119
Table 37: Environmental drivers for renewable mini-grid deployment and innovation�� 119
Table 38: Technological drivers for renewable mini-grid deployment and innovation�� 120
Table 39: Political and institutional barriers to renewable mini-grid deployment and innovation��122
Table 40: Economic barriers to renewable mini-grid deployment and innovation��122
Table 41: Key social barriers to renewable mini-grid market deployment��123
Table 42: Environmental barriers to renewable mini-grid deployment and innovation��123
Table 43: Technological barriers to renewable mini-grid deployment and innovation��124
Table 44: Examples of renewable mini-grid projects worldwide��125
Table 45: Roles of key stakeholders in mini-grids�� 126
Table 46: Summary of state of the art for PV technologies��155
Table 47: Summary of state of the art for wind turbines�� 156
Table 48: Summary of state of the art for hydropower��157
Table 49: Summary of state of the art for biogasification technologies�� 158
Table 50: PV technology indicators�� 165
Table 51: Wind turbine indicators�� 166
Table 52: Hydropower plant indicators�� 166
Table 53: Biogasification generation indicators�� 166
Table 54: Summary of key cost inputs for renewable mini-grid cost
and renewable fraction modelling*�� 167
v iii I NN OVATIO N O U T LO O K :
ABBREVIATIONS
AB Autonomous Basic service, one of the four renewable mini-grid types identified in this report
AC Alternating current
AF Autonomous Full service, one of the four renewable mini-grid types identified in this report
ALAB Advanced lead-acid batteries
AMI Advanced metering infrastructure
CAES Compressed air energy storage
CAIDI Customer Average Interruption Duration Index
CAPEX Capital expenditures
CEMG HIO Clean Energy Mini-grids High-Impact Opportunity
CERTS Consortium for Electric Reliability Technology Solutions
CF Capacity factor
CHP Combined heat and power
CMM Control, manage and measure
CPC Cooperative Patent Classification
c-Si Crystalline silicon
CSAC Centre for Self-Assembly and Complexity
CSIRO Commonwealth Scientific and Industrial Research Organisation
DC Direct current
DG Distributed generation
DSM Demand-side management
DSSC Dye-sensitised solar cells
EASE European Association for the Storage of Energy
EC European Commission
EDLC Electrical double-layer capacitor
EE Energy efficiency
EEE Energy-Efficient Ethernet
EERA European Energy Research Alliance
EPO European Patent Office
EV Electric vehicle
GSM Global System for Mobile Communication
HAWT Horizontal-axis wind turbine
HVDC High-voltage direct current
RE N E WA BLE M I N I - G RI DS ix
IC Interconnected Community application, one of the four renewable mini-grid types identified in this
report
IEC International Electrotechnical Commission
IEEE Institute of Electrical and Electronic Engineers
ILI Interconnected Large Industrial application, one of the four renewable mini-grid types identified in
this report
IoT Internet of Things
IRENA International Renewable Energy Agency
JRC Joint Research Centre of the European Commission
KI Key indicators
kVA Kilovolt-amp
kW Kilowatt
kWh Kilowatt-hour
LAB Lead-acid battery
LBNL Lawrence Berkeley National Laboratory (US)
LCOE Levelised cost of electricity
LEAP Long-range Energy Alternatives Planning System
LIB Lithium-ion battery
LiDAR Light detection and ranging
LVDC Low-voltage direct current
LWT Large wind turbine
M2M Machine-to-machine
MG Micro/Mini grid
MIMO Multiple Input Multiple Output
MOSFET Metal-oxide semiconductor field-effect transistor
MPPT Maximum power point tracking
MV Medium voltage
MW Megawatt
NASA EOS National Aeronautics and Space Administration Earth Observing System
NOCT Nominal Operating Cell Temperature
NREL National Renewable Energy Laboratory
O&M Operation and maintenance
OSeMOSYS Open Source Energy Modelling System
PAP Plug-and-play
PCM Phase-change material
x I NN OVATIO N O U T LO O K :
PHS Pumped hydro storage
PLC Power line communication or Power line carrier
PoE Power over Ethernet
PR Performance ratio
PV Photovoltaic
R&D Research and development
RES Renewable energy source
RV Recreational vehicle
SAIDI System Average Interruption Duration Index
SEI Solid electrolyte interface
SGIP Smart Grid Interoperability Panel
SHS Solar home system(s)
SMES Superconducting magnetic energy storage
SMS Short Message Service
SOC State of charge
SOEC Solid oxide electrolyser cell
STC Standard Test Conditions
SWERA Solar and Wind Energy Resource Assessment
SWT Small wind turbine
TCM Thermochemical material
TES Thermal energy storage
TFT Thin-film transistor
TOC Temperature operating conditions
UNFCCC United Nations Framework Convention on Climate Change
UPS Uninterruptible power supply
US DOE United States Department of Energy
USPTO United States Patent and Trademark Office
VAWT Vertical-axis wind turbine
VRB Vanadium redox battery
VRLA Valve-regulated lead-acid
WASP Wien Automatic System Planning Package
WAsP Wind Atlas Analysis and Application Program
WiMAX Worldwide Interoperability for Microwave Access
WIPO World Intellectual Property Organization
RE N E WA BLE M I N I - G RI DS xi
The mini-grids of the future will use more energy
from renewable sources and will provide increasingly
reliable power at an even lower cost. Ultimately, this
will extend even more electricity to remote areas and
support more-resilient grid-connected communities
and industry.
x ii I NN OVATIO N O U T LO O K :
SUMMARY FOR POLICY MAKERS
Why renewable-based mini-grids?
Mini-grids based on renewable energy sources provide clean energy to communities in rural and remote
areas that lack access to modern energy services. Mini-grids can deliver higher levels of service than
solar home systems, fostering productive uses of energy, in addition to basic services such as lighting. In
areas with a main grid, mini-grids can be connected to the main grid to provide a more reliable, cleaner
and cost-competitive alternative, including for consumers requiring large amounts of power without
any supply disruptions.
Mini-grids based on renewables, or renewable mini-grids, are hybrid mini-grids with a significant share of
renewable energy used to generate the electricity they distribute. Renewable mini-grids continue to gain
momentum as energy solutions in areas where energy demand is not fulfilled, and where grid extension is
not a cost-effective alternative. Renewable mini-grids are reaching maturity, as shown by their improved
reliability, reduced environmental impact, enabling of increased local control over energy used, and sustained
cost reductions. They light remote communities, enable industry in isolated areas and provide back-up to the
main grid when it fails. The mini-grids of the future will use more energy from renewable sources and will
provide increasingly reliable power at an even lower cost. Ultimately, this will extend even more electricity
to remote areas and support more-resilient grid-connected communities and industry.
Renewable mini-grids represent a growing market that is potentially worth more than USD 200 billion
annually. Renewables can be mixed with diesel-fuelled capacity to convert between 50 and 250 gigawatts
(GW) of capacity to hybrid mini-grids. Autonomous renewable mini-grids limit the need to use poles and
wires to connect communities to the main grid, and interconnected renewable mini-grids can potentially
reduce the burden on, and even support, centralised utility networks. Using different types of renewable
energy technologies, depending on local conditions, affects the design of a renewable mini-grid. Existing
diesel mini-grids have been retrofitted to offset fuel by, predominantly, adding shares of solar photovoltaic
(PV) generation integrated with storage solutions.
Small hydropower (SHP) and biomass power generation continue to be mini-grid solutions that are relatively
unexploited, despite the existing 75 GW of global SHP installed capacity and more than 1 million biogas
systems in rural areas. In areas with hydro and biomass resources, SHP and bioenergy can supply the base
load for community energy demands without the need for short-term storage. However, seasonality in the
availability of resources is an issue to consider for these two options. Small-scale wind can be integrated
in mini-grids, complementing the generation patterns of PV systems. Innovation will boost the transition
towards 100% renewable mini-grids, by gradually raising the penetration of renewable sources.
This report informs policy makers and other stakeholders in the energy sector about the technology
developments in renewable mini-grids. It also discusses how these technology developments could enable
faster commercialisation and large-scale deployment of renewable mini-grids. The information contained
in this report helps countries to support their national objectives by expanding their renewable energy
options. Policy makers will also find in this report a discussion on the effective implementation of incentive
programmes and policy actions for a transition towards a sustainable energy regime.
RE N E WA BLE M I N I - G RI DS 1
What is a mini-grid?
Mini-grids can be designed for and can deliver power at different levels of service, tailored to demand needs.
Mini-grids are integrated energy infrastructure with loads and energy resources. The core functionalities
for mini-grid technologies are: power generation; power storage; control, manage and measure (CMM);
convert and consume. Figure S1 presents an example of a renewable mini-grid. Planning and designing is
instrumental to connect the other five functionalities together, before construction and during operation.
Figure S1: Mini-grid functionalities
PLAN AND DESIGN
Optional
grid connection
Control,
Manage, Store
Measure
Convert
Generate Consume
Mini-grids can be categorised based on their connection to the grid and the level of service provided. A
renewable mini-grid can be interconnected to the main grid or independent from neighbouring grids, in
which case it is considered autonomous. Renewable mini-grids can provide different levels of service, from
basic services such as only lighting to higher levels of service, such as satisfying commercial energy demand.
Table S1 provides an overview of these categories.
Deployment of mini-grids
Autonomous mini-grid systems supplying basic services are widely deployed. Interconnected mini-grids
are still emerging. There is significant untapped potential for mini-grids in regions such as Africa and
Latin America.
This report, Innovation Outlook: Renewable Mini-grids, has found that autonomous mini-grids delivering
basic services are nearly mature and are being deployed globally. Autonomous renewable mini-grids
delivering higher service levels are being tested in most regions of the world. There has been limited
deployment of interconnected mini-grids, and most of the implemented systems are concentrated in North
America and East Asia.
2 I NN OVATIO N O U T LO O K :
Table S1: Types of mini-grids
Lower Tier of Service Higher Tier of Service
Autonomous Basic (AB mini-grids) Autonomous Full (AF mini-grids)

Generation Sources: PV, hydro and biomass Generation Sources: PV, hydro and wind
Tier of service: Less than 24-hour power Tier of service: 24/7 power
End-users: Remote community without major End-users: Remote communities with major
Autonomous
commercial or industrial activity commercial or industrial requirements; industrial

Added value: sites disconnected from grid
●● Enable enhanced energy access Added value:

●● Alternative to grid-extension ●● Alternative to expensive polluting imported fuels
●● Improve quality of life ●● Diversification and flexibility of supply
●● Cost savings ●● Cost savings
Interconnected Community (IC mini-grids) Interconnected Large Industrial (ILI mini-grids)

Generation Sources: PV, wind and biomass/biogas Generation Sources: PV, wind and biomass/biogas
Tier of service: High critical/interruptible Tier of service: Very high: Critical/uninterruptible
Interconnected
End-users: Medium to large grid-connected End-users: Data centres, industrial processing or

community, such as university campus other critical uses
Added value: Added value:
●● Community control ●● High reliability for critical loads
●● Improved reliability ●● Enhance environmental performance
●● Response to catastrophic events ●● Resiliency
●● Cost savings
Table S2: Status of deployment for different types of mini-grids
Limited Pilots Emerging Mature
Region Autonomous Autonomous Full Interconnected Interconnected

Basic Community Large Industrial
Canada and US
Caribbean, Central America, Mexico
South America
Europe
North Africa
Sub-Saharan Africa
Central and North Asia
East and South Asia
Middle East
Oceania
Antarctica
Innovation plays a crucial role in scale-up
The renewable mini-grids of the future require technology advancements in the planning and design
phases, as well as in each and every functionality of mini-grids: from generation to consumption,
and across electricity storage, power conversion and CMM technologies. Each functionality needs
improvement to unlock cost reductions, respond to social needs and protect environmental resources.
This report features exciting research on the ground-breaking innovations that can spearhead an accelerated
deployment of mini-grids with higher shares of renewables as one of the competitive energy-supply options
of the future. Research and development (R&D) and early commercialisation today are expected to produce
the innovations required to make renewable mini-grids more environmentally friendly, reduce their costs and
improve their reliability. These innovations are expected to result in an easier deployment of renewable mini-
grids over the next two decades. The R&D innovations featured in this publication provide key approaches
being taken to address the challenges faced by renewable mini-grids today.
Although not all of the research featured in this publication could lead to operational solutions by 2035,
these innovations have the potential to help renewable mini-grids reach a critical mass and further a
transition in which mini-grids will use only renewables for power generation. Some of the research topics
and technological developments that are currently being pursued in laboratories are listed below and are
thoroughly discussed in this publication:
●● Innovations in planning and design reduce cost and simplify the implementation of renewable
mini-grids. Current R&D in this field strives to enhance tools for designing and planning, to increase
availability of load data and to lower the cost of renewable energy resource assessment.
●● Innovations in CMM make the operation of renewable mini-grids easier and more reliable. Among
many others, some of the identified research initiatives currently ongoing focus on making more
intelligent short- and long-term controls as well as wind and solar predictions, adapting metering
technologies, improving communication technologies and interoperability standards, and easing the
integration of technologies.
●● Innovations in storage enable increased efficiency in the use of resources and more reliable operation,
yielding strong benefits across all areas of major impact. This publication discusses the research
efforts to improve batteries, such as using less expensive and more abundant materials to make
lithium-ion batteries, lower maintenance requirements, or storage that can handle seasonal variations
in resource availability.
●● Innovations in inverters, rectifiers and converters result in fewer power losses and provide a hardware
platform to integrate the components of the renewable mini-grids, which can ease set-up and lower
costs. The identified research in conversion includes new converter designs with high efficiencies
at partial output, the combination of diverse functions into inverters or, among others, improved
modularity for different renewable mini-grid markets.
●● Innovations in consumption reduce the energy requirements, yielding environmental and cost benefits.
This publication discusses more-efficient appliances available, particularly in remote energy access
markets, the scale-up of appliances designed for direct current (DC) grids and the development of
more flexible connectivity between DC lines and appliances.
Exciting innovations in the pipeline
Ground-breaking improvements are under way, not only in components, but in system integration,
controllability and flexibility.
In the future, innovations in renewable mini-grids will include increasingly modular solutions using off-the-
shelf hardware and software. The technologies will have lower costs and increased capabilities. As the costs
of renewable generation and storage drop, the importance of modularity and ease-of-use will continue to
increase. Modularity and ease-of-use will be driven by the use of smarter planning and controls, improved
interoperability and better scalability of designs. An overview of the technological progress expected in the
functionalities of mini-grids by 2035 includes:
●● Lithium-ion, organic flow and other chemistries will drive down the cost of batteries and are expected
to have increased uptake in the market. Although lead-acid batteries are expected to continue to be a
major storage technology in renewable mini-grids, advanced lead-acid batteries will play a larger role.
Advanced lead-acid batteries are increasingly capable of handling more cycles at greater efficiencies.
There will be a proliferation of other chemistries available that will create further competition to drive
down prices. Innovations in phase-change materials and thermochemical materials are expected
to allow for increased use of thermal storage over long periods. Supercapacitors can benefit from
innovations in the use of graphene and increased capabilities for high power and long life. The impacts
of technological innovation on battery costs are shown in Figure S2.
●● Short-term controls with the ability to integrate more sophisticated algorithms and more accurate
wind and solar predictions, accompanied by intelligent control and integration of batteries, are key
for increasing the penetration of renewable energy. Research on smarter and more flexible meters
that are able to adapt to new business models, time-of-use pricing, automatic meter reading and
advanced metering infrastructure are key areas of research and innovation. Modular solutions and
improved communications and standards will be critical to ease the integration and interoperability
of components.
Figure S2: Expected cost reductions in lead-acid, advanced lead-acid, lithium-ion and flow
storage batteries by 2015, 2025 and 2035
Batteries cost (USD/usable kWh)
1600
1400
1200
1000
800
600
400
200
0
2015 2025 2035
Lead-acid Advanced lead-acid

Lithium-ion Flow storage
●● Internet of Things technologies will continue to enable more intelligent use of electricity by allowing
for interconnection and intercommunication among conventional appliances. Along with cost
reduction trends and the standardisation of DC lines, the use of appliances that can operate with DC
and more efficient AC appliances are expected to increase in the market.
●● The increasing use of DC grids and appliances will require more efficient and affordable DC-DC
converters. The availability of conversion technologies in markets is expected to increase and to
include larger-power battery inverters. However, most of the innovations for conversion technologies
are expected to happen in transistors. These will bring costs down, increase efficiencies and reduce
their size and weight. Figure S3 summarises the expected impact of innovations in cost reduction for
grid-forming, grid-following and dual-mode converters by 2035.
This publication also includes a patent review and shows that innovation trends in most of the core
technologies are positive. Interest in their potential to transform the energy sector is growing. In the last four
years almost 12 000 patents in CMM technologies and more than 30 000 patents in storage technologies
were filed in China. During the same period, 2 180 patents in converters and conversion electronics and more
than 2 090 patents in the fields of energy efficiency, demand-side management and back-up technologies
applied to renewable mini-grids were filed in the United States.
Figure S3: Expected cost reductions in grid-forming, grid-following and dual-mode converters
in 2025 and 2035
2500
2250
Converter cost (USD/kVA)
2000
1750
1500
1250
1000
750
500
250
0
2015 2025 2035
Year
Grid-forming Grid-following Dual-mode
What will the mini-grid of the future look like?
A two-part figure, shown below and on the page that follows, depicts the potential evolution of current
research and technological development.
Figure S4: Potential evolution of renewable mini-grids by 2025 and 2035
The Renewable Mini-grid of 2025
Control, Manage and Measure

CMM equipment incorporates new controls, creating increasingly stable grids. Renewable mini-grids
facilitate smarter decisions as intelligent supervisory controls are integrated with improved solar and
wind predictions. Interoperability and integration standards have been developed and implemented,
along with more widespread and flexible plug-and-play capabilities. More-robust energy meters include
features to flexibly support new business models and time-of-use pricing. These are readily available at
low cost. Cloud-based monitoring centres and hubs proliferate.
Generation Storage
Grid connection
Solar PV price reductions Lithium-ion batteries (LIBs) and
(if available)
continue, driven by advances in advanced lead-acid batteries (ALABs)
DSSC and organic chemistry. Solar are cost-competitive with ordinary
is the default power-generation lead-acid batteries (LABs); LIBs
source for renewable mini-grids, have become widely used and are
although wind and biomass considered a safe technology, enabling
remain strong options. Meanwhile, greater integration of renewables.
improved resource assessment
technology reduces barriers
for wind and hydropower. More Consumption
modest technological innovations Increasing use of high-efficiency and
for wind and biogas yield steady DC appliances reduces electricity costs
cost reductions. for home owners and businesses.
Conversion
High-efficiency GaN semiconductors have become widespread in inverters. Standard versions of these
incorporate additional features to handle new battery technologies. Increasing numbers of inverters can
operate in two modes, encouraging economies of scale that will push costs lower. DC/DC converters are
also increasingly common, with features to support renewable mini-grids. Inverters are available in a
wide range of sizes, increasing their potential impact.
The Renewable Mini-grid of 2035

Renewable mini-grids use smart controls that enable near-optimal decisions based on distributed
intelligence and robust resource predictions. Interoperability and integration standards have continued
improving and are embedded into all equipment. Smart meters are standard for renewable mini-grids,
providing more features and further lowering costs. Monitoring technologies leverage cloud-based
and hub centres and are less expensive. Preventive and corrective actions can be taken automatically.
Off-the-shelf designs draw on international experience, adapting it automatically to local needs.
Grid connection Storage

(if available) Newer battery types are cost-
competitive with LIBs and ALABs,
further reducing energy storage costs.
Long-term storage and improved
high-power output are affordable,
Generation reducing the use of diesel generators.
Power generation based almost
exclusively on renewable energy
is cost-effective for mini-grids. Consumption
Innovations in nanomaterials High-efficiency and DC appliances
and advanced chemistry may have become standard, further
further reduce the cost of solar reducing electricity costs for home
photovoltaic (PV) power. owners and businesses.
Conversion
New nanomaterial semiconductors, such as carbon nanotubes (CNTs), are increasingly common in
converters. Dual-mode inverters that can operate even when the rest of the grid is down are readily used
in the renewable mini-grid due to their low cost.
Innovation strengthens the competitiveness of mini-grids
Technology innovation, accompanied by advancements. Mini-grid power generation looks set to fall
in business models and system operation, will dramatically reduce the cost of producing electricity in
renewable mini-grids to one-third of its current cost in the next two decades.
Innovation will enable autonomous renewable mini-grids to provide higher service levels at a lower cost. This
will lead to greater geographic reach in the coming decades, providing larger isolated communities with
increasingly cleaner electricity. The levelised cost of an autonomous mini-grid using only renewable energy
is expected to drop to between USD 0.30 per kilowatt-hour (kWh) to USD 0.57/kWh by 2025, and to a range
of USD 0.19/kWh to USD 0.35/kWh by 2035. Current costs are between USD 0.47/kWh and USD 0.92/kWh.
The primary drivers for this lower levelised cost are expected to be lower storage costs and more intelligent
controls. However, innovation in the other functionalities will be necessary.
By 2025, autonomous renewable mini-grids will be able to provide both basic and high tiers of service at
competitive prices, leading to massive commercialisation and deployment to remote areas globally. As the
costs decline, renewable mini-grids will make more economic sense and will increasingly compete with the
extension of main grids. By 2035, renewable mini-grids will be a cost-competitive option even in areas close
to the main grid.
Interconnected renewable mini-grids also are evolving to become a commercially viable option. Today
the business case for interconnected mini-grids is strongest for customers with critical needs and in
areas with expensive main grid power. By 2025, however, innovations are expected to drive installation of
renewable mini-grids to customers with less stringent load requirements, leading to a more resilient grid
system. A predominant driver will be the search for better resilience and disaster-response capabilities. By
2035, broader acceptance of renewable mini-grids by utilities will further improve compatibility between
renewable mini-grids and the main grid. Mini-grids that use a small or medium-sized amount of renewable
energy in their generation mix are expected to be common, and the increasingly declining costs will allow
communities seeking better environmental options to adopt renewables using renewable mini-grids.
Figure S5 presents the evolution of estimated costs for autonomous renewable mini-grids that draw all of
their energy from renewable sources. These estimates are conservative. Combining renewables with other
energy sources could offer options with even lower costs, and interconnected mini-grid costs may be able
to purchase energy from their neighbouring main grid to reduce costs.
The cost reduction of interconnected renewable mini-grids will be influenced by the economics of the
interconnected main grid, but the main cost trends from autonomous grids could be applied.
In the transition towards a mini-grid deploying 100% renewable energy sources, and depending on the
mini-grid design, a hybrid mini-grid might have lower costs than a 100% renewable mini-grid. However, the
cost of integrating renewables in mini-grids will decline thanks to technologies that enable a higher share of
renewable energy, such as storage and control systems. For example, for the lowest-cost solar PV mini-grid
design the optimal fraction of renewable energy may rise from 60% at less than USD 0.45/kWh in 2015, to
more than 90% at around USD 0.30/kWh in 2025, to almost 100% renewable at USD 0.20/kWh in 2035.
Figure S5: Unsubsidised cost ranges for renewable mini-grids from 2005 to 2035 for a 100% renewable
energy community system.
1,6
1,4
1,2
Renewable mini-grids cost USD/kWh
0,8
0,6
0,4
0,2
2005 2015 2025 2035
Autonomous renewable mini-grids for full services Autonomous renewable mini-grids for basic services
Source: Author elaboration with HOMER Pro, 2016
How can policy makers pave the way?
None of these innovations are possible without the adequate support of policy makers, the private and
non-profit sectors, and academia.
Although renewable mini-grids present an exciting opportunity for re-thinking traditional energy supply
models, their development and deployment require balancing of social needs, political will, economic
efficiency, technological capabilities and environmental protection. To address these interlinked aspects,
Innovation Outlook: Renewable Mini-grids offers key advice for policy makers, technology investors, project
developers, the non-profit sector and academics, to help all to participate in fostering the growth of these
technological options. The following are some of the options to support the deployment of renewable
mini-grids discussed in the report:
Public-private partnerships and loan grants can help develop and implement projects, while public venture
funds and subsidies contribute to generating and exchanging knowledge. Funding from the public and
private sectors is critical to support the fundamental research activities that generate new ideas.
●● Policy makers play a critical role in providing market policies to support commercialisation of
renewable mini-grid equipment for a larger growth of the industry. Innovations in the final stages
of renewable mini-grid development could benefit from market policies to overcome the “valley of
death”.
●● The regulation of renewable mini-grids is still in its infancy, and, among other things, the public sector
should focus on adopting new, flexible standards that encourage development and avoid standards
that discourage innovation. The challenge of regulating renewable mini-grids is to keep a balanced
approach between specific policy regulation for these mini-grids and a flexible regulatory framework
that are applicable to a myriad of options.
●● Governments have an instrumental role in building competence and disseminating knowledge

through international co-operation and industry support. There also is the need for a paradigm shift
to facilitate new and continuous training of electrical engineers and technicians.
●● Private investors play a major role in funding fundamental research activities and pilot projects and
contributing to knowledge and technology transfer. There is a need for private sector investment in
new technologies and for technology holders to transfer their knowledge acquired in other contexts
to the renewable mini-grid sector – such as research conducted within the automobile sector on
batteries.
●● Academia and universities are important for the innovation of renewable mini-grids. Beyond powering
innovation with fundamental and applied research, academia can collaborate in setting research
agendas and by undertaking the most demanding mini-grid experiments.
The coming decades will bring exciting perspectives for mini-grids. Renewable mini-grids are increasingly
chosen as the alternative to meet the energy needs of different communities across the world. From solar
PV and small wind technologies integrated in DC systems with smart batteries in remote areas, to larger
community-owned PV plants integrated with electric vehicles and smart demand-side control, different
applications will be enhanced by a variety of innovative solutions. In this dynamic landscape, mini-grids
have enormous potential beyond their application for energy access, complementing larger systems and
supporting productive uses of renewable energy. Innovation Outlook: Renewable Mini-grids looks ahead to
the exciting developments to come in the next decades.
GLOSSARY OF TERMS
Algorithm A formula or procedure created using software to solve a repeated obstacle or problem.
Anode The electrode by which current enters an electrolytic cell, voltaic cell or battery.
Autonomous mini-grid A mini-grid that operates completely independently of a larger grid.
Biogasification Technologies that use an organic, carbon-based matter to produce useable fuel. If the
technologies fuel is used to produce electricity, it will be fed into an engine and generator.
Broadband ethernet A structure that connects multiple electronic devices to create a local area network.
Broadband ethernet connections are considered to be more reliable, faster and lower-
cost than fibre broadband connections due to multiple copper wire transmission lines.
Capacity factor The percentage of electricity actually generated in comparison with what could be
produced at full rated power.
Cathode The electrode by which current leaves an electrolytic cell, voltaic cell or battery.
Chronological Software that simulates chronologically the hourly commitment and dispatch of power
simulation supply equipment and allows insights to whether this equipment is physically capable
of supplying the expected load.
Commercial scale-up A mature stage of technological innovation focused on increasing the use and
deployment of a technology.
Cut-in wind speed The minimum wind velocity needed to overcome frictional forces related to the rotation
of wind turbine blades to produce power.
Demand-side Strategies to reduce energy use during peak hours, to match demand with power/
management resource availability.
Distributed generation Decentralised technologies that are located close to the electrical load that they serve.
These often are installed at the distribution level and use renewable energy sources.
Drivers Political, economic, social, environmental or technological factors that influence or
advance renewable mini-grid deployment worldwide.
Droop control A control approach for alternating current (AC) grids in which each generator adjusts its
output by using the grid frequency. It enables parallel generators to share load.
Dual-mode inverter Inverter capable of switching between grid-connected mode and autonomous
operation.
Electrode A conductor through which a current enters or leaves a non-metallic medium.
Electrolyte A liquid or gel inside a battery that contains ions and that enables the electricity to flow
between the cathode and the anode.
Feeder Electric conductor that originates at a primary distribution centre and supplies power to
one or more others.
Five nines A term to describe very high reliability electricity, indicating that the electrical supply
is available 99.999% of the time. Data centres often pursue this level of reliability at
minimum.
Flexiwatts Electric loads that demand flexibility shifts in time. Demand can be moved across the
hours of a day or night according to economic or other signals.
Fouling issues The accumulation of unwanted materials that can affect functioning.
Functionality The core use or set of uses for a technology in a renewable mini-grid.
Graphene An atomic-scale honeycomb lattice made of carbon atoms.
Grid-forming inverter Because renewable energy sources generate DC or variable AC voltages, they require an
inverter to interface with and help regulate or “form” the mini-grid. This type of inverter
is required to regulate voltage and frequency.
Head range A range of water-surface elevations for hydropower turbines to function.
Innovation The development and diffusion of new or improved products, processes or services.
Integration The process of linking together different renewable energy capabilities and
components, either physically or functionally, to act as a co-ordinated whole.
Interconnected In the context of renewable mini-grids, this describes a mini-grid that has the capability
of connecting with a neighbouring grid to run as a single unit.
Interoperability The capability of multiple components, devices, networks or applications to securely
and effectively use and exchange information between entities that interact with energy
storage.
Islanding mode State of operation when a mini-grid is operating while not connected to or drawing
electricity from a neighbouring (often centralised) electricity grid.
Key indicators Significant, influential indicators for measuring technological growth and progress and
comparing different technologies.
Levelised cost of A measure of the average cost of electricity over a project’s lifetime. This measurement
electricity (LCOE) is calculated by taking all of the expected lifetime costs and dividing it by the lifetime
expected power output for that system.
Leapfrog Refers to the adoption of state-of-the-art technology in a specific sector without prior
adoption of previous technology. An example is the use of mobile phones in a remote
area where there was no previous access to landlines.
LiDAR Technology Light detection and ranging (LiDAR) is a sensing technology to examine surfaces or
measure distances. It uses light in the form of a pulsed laser.
Low-voltage The capability of wind generators to operate during periods of lower grid voltage.
ride-through
Long term evolution A technical process for achieving fourth-generation (4G) connectivity speeds. The
(LTE) LTE/4G fourth generation (4G) of data technology for cellular networks is up to 10 times faster
than 3G.
Machine-to-machine When multiple devices are able to connect and communicate between themselves to
communication either collect or exchange data.
Main grid The electric power distribution grid, which can work in parallel with a mini-grid. It often
is referred to as utility grid or national grid.
Maximum power point A device embedded into the charge controller that adjusts operating parameters in
tracker wind and solar installations to maximise power output.
Micro-siting (renewable Evaluating site locations for individual renewable energy generation components such
generation) as turbines or solar arrays within a larger renewable energy siting project. For example,
the location of a wind turbine must be carefully placed to ensure optimal power
generation.
Mini-grid/ Microgrid Distributed energy sources (including generators and energy storage appliances) and
interconnected loads integrating an energy infrastructure, which can operate in parallel
with the main grid, off-grid or in islanding mode.
Mobile money Services that offer a user access to a variety of financial services via mobile phone.
platforms
Metal-oxide Transistor used to switch or amplify electronic signals.
semiconductor field-
effect transistor
Nanomaterial Material that contains nanoparticles of approximately 1 to 100 nanometres in at least
one external dimension.
Nominal power The nameplate power capacity of a generating unit.
Peak shaving Reducing electricity consumption on a grid during times of peak power usage. Peak
shaving can reduce electrical congestion on a grid. Peak times will vary based on load
demand, feeder and distributor capacity, and the availability of power from generators.
Power factor For AC electrical power equipment, the power factor is the ratio of the useful (“real”)
energy that is delivered as compared to the total (“apparent”) energy. Ideally, this ratio
is 1:1. However, certain loads and generators can reduce the amount of real energy
delivered.
Power quality A measure of how closely the delivered power matches the ideal quality level, based
on clean and stable power. A supply with high power quality is noise-free. For AC
electricity, high power quality is a perfect sinusoidal wave shape.
Ramp rate The ability of a generator to adjust its power output up or down based on variability
from load and production from other generators. The ramp rate is a particularly
important consideration for generators that are used to ensure stable operation of a
grid with variable renewables.
Redox reaction A chemical reaction that involves the transfer of electrons between species. Redox is
short for “oxidation reduction”.
Remote payment A prepaid card with a unique identification pin number that allows the user to pre-pay
scratch card for services from different locations.
Run-of-river A hydroelectric installation that diverts a portion of a river’s flow to electricity
technology generation turbines and then returns the diverted flow back to the river channel. In
contrast to traditional hydro technologies, run-of-river does not require significant water
storage reservoir.
Self-discharge (rate) Discharge that occurs in batteries due to an internal chemical reaction which reduces
the stored charge of the battery without any connection between the electrodes.
Solid oxide electrolyser A solid oxide fuel cell that produces oxygen and hydrogen gas through the electrolysis
cell of water by running in regenerative mode.
Syngas A fuel-gas mixture made up of mainly hydrogen and carbon monoxide.
Technology venturing An activity at the early stage of technological innovation focused on adapting
technology to the market.
Tier of service The level (“tier”) of electricity service provided to a customer or end-user on a grid.
Lower tiers of services will have electricity available for less time each day and less
power available.
Uninterruptible power A device that allows for the continued operation of an electrical device or machine after
supply a loss of power, and that protects the device from power surges.
Vacuum-annealed A process to clean graphene by heating it under controlled pressure.
graphene
Worldwide A wireless communication standard designed to provide data rates of 30 to 40
Interoperability for megabits per second.
Microwave Access
ZigBee An open global standard for wireless technology. It is used to create networks that
require low data transfer rates, energy efficiency and secure networking.
1 INTRODUCTION
Mini-grids are not new. They bring light to remote Mini-grids serving remote areas with a maximum
communities, enable industry in isolated areas and back demand larger than about 1 megawatt (MW) typically
up the main grid (see Glossary of Terms) in case of are still almost entirely dependent on fossil-fuelled
failure. However, the mini-grids of the past derived their gensets during stand-alone operation. Smaller mini-
power from costly fossil fuels and are prone to electricity grids in these areas often use a higher percentage of
back-up failures. Technological changes are providing an energy from renewable sources but suffer from scaling
opportunity for mini-grids to evolve. In the future they will challenges and higher costs. In areas with access to the
use increasingly more energy from renewable sources – main grid, back-up systems are based almost entirely on
becoming an alternative to expensive and polluting diesel. In all cases, the cost of energy typically exceeds
fossil fuels – and will provide increasingly reliable power. that of the main grid. Renewable mini-grids provide an
Mini-grids that use renewables in their energy mix have opportunity to change this.
the potential to bring low-cost power to areas that are
without it now, to support communities to improve Renewable mini-grids are important for the increased
their use of cleaner energy sources, and to increase value that they provide, not only in terms of energy
the resiliency of industries and business. Figure 1 shows cost reduction in remote areas, but also in terms of
a sample renewables-based mini-grid configuration, the increase in reliability that they can provide in both
which is commonly used in rural electrification. interconnected and autonomous areas.
Figure 1: A renewable mini-grid with DC distribution
Source: Author elaboration
Autonomous areas reliant on expensive diesel are The technological innovation outlook presented in
increasingly using renewables to reduce costs. The this report characterises the technological needs for
use of renewables in these mini-grids is, generally, increasing performance, reducing cost, mitigating
cost-effective today. As the costs of diesel fuel go up environmental impacts and driving deployment of
and the costs of renewables come down, these areas renewable mini-grids. Research on renewable energy
are pursuing technologies that enable them to increase mini-grids should be focused on lowering costs, as
the percentage of energy from renewables in their mini- well as on increasing flexibility and the robustness of
grids. Innovation in mini-grid technologies is enabling technologies. As the costs of renewable generation and
these mini-grids to increase reliability, while leveraging storage continue to drop, the importance of modularity
renewables to reduce reliance on imported fuels. and ease-of-use will increase. Modularity and ease-of-
use will be achieved by the use of smarter planning,
In interconnected areas, mini-grids hold the tantalising more intelligent controls, the increased compatibility
potential to improve supply and, when interconnected, of different types of equipment (“interoperability”, see
to strengthen the neighbouring grids to which they Glossary of Terms) and the increasing scalability of
connect. In this way, they can provide value to the mini- designs.
grid operator, to its neighbours as well as to the main
grid utility. In areas with strong utility grids, mini-grids Renewable mini-grids are driven by a complex web
often have a focus on high reliability and security (e.g., of considerations and needs. In addition to the
for high-end manufacturing or data centres). In areas technological innovations described here, renewable
with weaker grids, mini-grids provide an alternative to mini-grids will benefit from developments in other
fossil fuel back-up generators. In both instances, they areas, such as socio-political innovations required for
provide a foundation for the integration of renewable re-thinking energy regulations; new business models
energy. and new approaches to financing; and enhancements
to environmental protections to increase mini-grids’
Advancements in mini-grid technologies can reduce the use of renewable energy sources. Renewable mini-grids
challenges of integrating large amounts of renewable present an opportunity for re-thinking traditional energy
energy into the electrical supply, while also increasing supply models. However, energy technologies must
local control and choice. The access to new generation balance social needs, political will, economic efficiency,
choices provides a critical alternative to the near- technological capabilities and environmental protection
monopoly that electricity from diesel traditionally has in order to be effective. To address these interlinked
had in remote areas, and are an alternative to extending aspects this report includes key advice for policy
the grid to isolated areas. Mini-grids also provide an makers, technology investors, project developers, the
alternative to entirely independent, stand-alone non-profit sector and academics to foster the growth of
systems. In contrast to electrification with very small this new technological option.
independent systems, mini-grids give users an option
to share costs and leverage the benefits of scale that This report aims at informing policy makers and
come from sharing an electrical supply across different other energy sector stakeholders on the technology
end-uses. developments in mini-grid systems based on renewable
energy, which would enable a faster commercialisation
In interconnected areas, mini-grids provide an and a large-scale deployment of this type of power
alternative to the exclusive use of centralised generation system. The information contained in this report may
from the main grid. Mini-grids provide an option to help countries in expanding their renewable energy
commercialise preferred energy mixes locally, while options in support of their national objectives, and also in
also leveraging the frequently low cost of energy from enabling a more focused and effective implementation
the larger grid. Many interconnected communities and of incentive programmes and policy actions for a
businesses are interested in renewable mini-grids to transition towards a sustainable energy regime.
improve their environmental stewardship and increase
local control of their energy mix. These communities An overview of the different types of renewable
and businesses are actively exploring renewable mini- mini-grids is presented in Section 2, explaining the
grids for this purpose. renewable mini-grid ecosystem through the lens of
grid connectivity and tiers of energy service. Section 3 and innovation prospects, providing specific examples
details the current use and deployment of renewable of current research in universities, laboratories,
mini-grids globally. Section 4 explains the most-current companies and elsewhere that is expected to lead
technologies at their various stages of development, to new technological breakthroughs with promising
categorised in the following groups: plan and design; potential for commercial application in the next two
control, manage and measure (CMM); store; convert; decades. Section 7 defines the potential role of key
consume; and generate. Section 5 summarises the main stakeholders, and particularly policy makers, in driving
technological gaps and opportunities for advancing innovation in renewable mini-grids. Final conclusions are
renewable mini-grids. Section 6 details ongoing R&D summarised in Section 8.
Renewable mini-grids are driven by a complex web

of considerations and needs. In addition to the
technological innovations described here, renewable
mini-grids will benefit from developments in other
areas, such as socio-political innovations required for
re-thinking energy regulations; new business models
and new approaches to financing; and enhancements
to environmental protections.
2 TYPES OF RENEWABLES-BASED
MINI-GRIDS
Mini-grids, also known as microgrids (the term mini- In addition to a connection to neighbouring grids, this
grids will be used in this report), can be independent report uses tiers of service to differentiate mini-grids.
of a neighbouring grid (“autonomous”, see Glossary In contrast to traditional users of the main grids, which
of Terms) or interconnected (see Glossary of Terms) all share the same quality of electricity service, mini-
to the main grid. Despite their commonalities, some grids provide the option for differing electricity service
definitions focus on autonomous mini-grids (CDM quality. The Global Tracking Framework’s tiers of service
Executive Board, 2011; IEA-PVPS, 2011), others focus (see Glossary of Terms) for autonomous electrification
on interconnected mini-grids (Brucoli and O’Halloran, range from low service (Tier 1) to high service (Tier 5)
2014; marketsandmarkets.com, 2014a; US DOE, 2012a) (Angelou et al., 2013). For example, a solar lantern would
and others include both types (Carl, 2013; Office of the provide low-quality service, as per Tier 1 (outside the
Federal Register and NARA, 2007). scope of the present report). Renewable mini-grids are
most typically used for providing power at Tier 3 and
While there are differences in all of these definitions, they higher.
all have in common that mini-grids are integrated energy
infrastructure with loads and energy resources, including The US Department of Energy (DOE) has created a
generators powered by energy sources such as solar different tier framework for interconnected mini-grids
PV and wind turbines; energy storage devices such as (US DOE, 2012a). The primary difference between
lead-acid batteries; power-conversion equipment such these frameworks is that expectations of service differ.
as inverters; and CMM equipment, including battery This stems from the expectation that service quality
supervisors, and meters, among others. These loads traditionally has been higher when interconnected to
and energy resources are interconnected with users via the main grid. In this report, grid connectivity and tiers
a distribution grid (see Figure 1). This report focuses on of service have been combined to create four renewable
renewable mini-grids: those that derive a majority of mini-grid types. A detailed breakdown of the types,
their primary energy from renewable sources to generate their relationship to a main grid and typical tiers of
electricity. service are provided in Table 1:
Table 1: Types of renewable mini-grids
Lower Tier of Service Higher Tier of Service

AF (Autonomous Full service)
AB (Autonomous Basic service)
Typical generation sources are solar PV, hydro and
Typical generation sources are solar PV, hydro and
wind, with diesel generators as a back-up. Larger
biomass, with diesel as possible back-up. Storage is
amounts of storage and more reliable service
limited, to reduce costs. Power is supplied for less
compared with AB.
than 24 hours and may be turned off when there is
insufficient renewable energy to meet load. Design Tier of service: Tier 5 (24-hour power) typically
for energy provision for lighting and communication Socio-economic considerations: AF requires higher
is basic, with limited support for motors and large capacity to pay for power. The size of the grid is
loads. typically larger, enabling economies of scale and
Autonomous
Tier of service: Tier 3-4 (less than 24-hour power) allowing increased energy demand. The service may
include larger commercial and industrial users that
Socio-economic considerations: The target is
require higher reliability and use motors.
low-income communities with limited funds and
capacity to pay. The focus is on providing basic Typical consumers: Remote communities, islands,
access to energy services to meet rural development consumers with major commercial or industrial
goals. requirements; industrial sites disconnected from
grid.
Typical consumers: Remote community without
major commercial or industrial activity. Sample loads: Power for all AB loads plus major
productive uses (e.g., air-conditioned hotels,
Sample loads: Power for lighting, radio, mobile
industrial manufacturing, commercial refrigeration).
phone, fridge, TV, limited minor productive uses
(e.g., chilling drinks, hair dressing, small livestock,
water pumping for small farms).
IC (Interconnected Community application) ILI (Interconnected Large Industrial application)

There are few community mini-grids today, There are few industrial mini-grids today, although
although mini-grids with limited renewables and mini-grids with limited renewables and CHP are
combined heat and power (CHP) are common. common. The main renewable generation options
The typical renewable generation options are solar are solar PV, wind turbines and limited biomass
PV, wind turbines and sometimes biomass/biogas technologies. Built to ensure 99.999% reliability
technologies. These types of mini-grids may be (“five nines”, see Glossary of Terms) even during
used as a back-up to the main grid, designed to major utility outage events. Facilities will spend
sustain only the most critical loads, or could be substantial resources for additional reliability and
used to provide primary power, with the main grid resiliency.
as a back-up. In each situation they are designed to Tier of service: Tier 5++ (very high: critical/
ensure close to 100% reliability. The design depends,
Interconnected
uninterruptible)
among other factors, on the cost-effectiveness of
Socio-economic considerations: The end-uses are
renewables during typical operation.
often industrial and will suffer substantial penalties
Tier of service: Tier 5+ (high critical/ interruptible) if the electrical supply fails. Examples include
Socio-economic considerations: Focused on precision manufacturing and data centres where
improving the availability of community services, reliability is key for successful business.
particularly during outages or extreme events. There Typical consumers: Data centres, industrial
is typically high ability to pay among stakeholders, processing or other critical uses.
particularly when costs are shared across
Sample uses: High-tech loads that require
communities.
consistent power (uninterruptible).
Typical consumers: Medium to large grid-
connected communities, such as university
campuses.
Sample loads: Critical uses such as priority loads
for clinics, communication and other emergency
response.
Source: Debajit, 2012; Deshmukh, 2014; US DOE, 2012a; SE4All, 2015; author elaboration
3 DEPLOYMENT STATUS AND COSTS
Renewable mini-grids face competition from two 3.1 Deployment of renewable

main technologies: individual solutions and the main
grid. At the small end of the spectrum, individual
mini-grids
solutions such as solar home systems (SHS) and When considering deployment of renewable mini-
productive applications such as solar water pumps grids, it is important to put them in the context of
are enabling customers to set up their own renewable mini-grid deployment worldwide. In remote areas,
energy supply with low-tier service. Grid extensions the vast majority of these autonomous installations
traditionally have been the first option considered are 100% reliant on diesel fuel, which is both costly
for electrification. Mini-grids are an opportunity that and environmentally damaging. According to IRENA
is able to balance having a local solution with the (2015a), the market for diesel mini-grid hybridisation is
benefits of load aggregation. between 50 GW and 250 GW, a large part of which is on
islands. In terms of quantity, there are nearly 100 GW of
Interconnected renewable mini-grids can add value gensets smaller than 0.5 MW worldwide (IRENA, 2015a).
to each of these applications, in terms of improving
the reliability and resiliency of the supply while Renewables can cost-effectively be retrofitted into these
simultaneously allowing renewable energy sources grids today, although further technological innovation is
to contribute a significant portion of the portfolio. needed to enable wide-scale conversion to renewable
There has been strong market growth in off-grid areas, mini-grids. In autonomous areas there are nearly 75 GW
particularly in difficult-to-access or very remote areas of small hydropower installations and about 7.5 MW of
such as rural Africa. Due to the potential benefits there autonomous small wind turbines (IRENA, 2015a). There
is active exploration of renewable mini-grids through is some small-scale biomass generation, totalling fewer
pilot and demonstration projects in preparation for the than 5 MW. Finally, solar PV is very common, but precise
technology to mature. numbers are not available.
Box 3.1 – Saving fuel with solar in diesel grids

Increasingly, there is a push to reduce the use of diesel in mini-grids by replacing it with solar energy. These
“fuel-saving” solar installations are helping grid operators use renewable energy to diversify their energy mix.
Diversification reduces the impact of volatile fuel prices on generation costs. Often, these systems use low
penetrations of solar energy that do not require storage, reducing capital costs. In general, fuel-saving solar
systems are used in larger AF-type mini-grids to offset fuel, and often as retrofits to existing diesel grids.
These systems can derive, at most, 20% to 30% of their energy from renewable energy; storage is required
for higher savings. Importantly, these installations prepare the mini-grid for future upgrades to increase the
use of renewable energy technologies by enhancing the controls infrastructure. For larger projects, there is
strong interest in fuel savers because they allow a third-party operator to own the solar PV and sell into the
grid. Common providers of the fuel-saver systems include SMA, Schneider, ABB, NRG, OPS, General Electric
and Leonics.
Some examples of fuel-saving projects without the use of batteries are Cronimet’s Zwartkop Chrome mine in
in South Africa, the hospital of Gonaives in Haiti developed by TTA, or several pilot projects in Lebanon within
the fourth phase of the UNDP-CEDRO Project, including two large factories.
Despite the potential, renewable mini-grids today Mature renewable mini-grids are mostly limited to
represent a much smaller segment of the market. smaller grids (AB type) in rural areas of Guatemala,
They have been installed in most regions worldwide, Nepal, Nicaragua and other places with appropriate
although the type and technologies used vary. Table river resources for hydropower and for isolated PV
2 includes a summary of the hotspots within each mini-grids. Notable example projects from each region
region. The table includes a quick assessment of the are presented in Annex 3.
maturity of the market, ranging from very few (limited),
to isolated exploration (pilots), to developing market Latin America and the Caribbean have high electrification
(emerging) to active deployment today (mature). rates, due in large part to grid extensions that provide
Table 2: Renewable mini-grid deployment by region
Region High concentration of hot Autonomous Autonomous Interconnected Interconnected

spots Basic Full service Community Large Industrial
service application application
Canada Canada (e.g., Newfoundland), Limited Mature Emerging Emerging
and US US (e.g., remote areas in
Alaska, California, Hawaii and
the Northeast)
Caribbean Cuba, Dominican Republic, Mature Emerging Emerging Limited
and Central Guatemala, Mexico (e.g.,
America, Baja California, Durango)
Mexico Nicaragua
South Bolivia, Brazil (e.g., Amazon), Mature Emerging Limited Limited
America Ecuador (e.g., Galapagos
Islands), Peru
Europe Canary Islands, Denmark, Mature Mature Pilots Pilots
Germany, Greek islands, Italy, Emerging,
Spain, some UK islands (e.g., Pilots
Isle of Eigg)
North Algeria, Morocco, Mature Emerging Limited Limited
Africa
Tunisia
Sub- Burundi, Cameroon, Cape Emerging, Emerging Limited Limited
Saharan Verde, Chad, Ghana, Guinea Mature
Africa Bissau, Kenya, Liberia,
Mali, Mozambique, Nigeria,
Rwanda, Senegal, Uganda,
United Republic of Tanzania
Central and Russian Federation Emerging, Limited Limited Limited
North Asia Pilot Project
East and Bangladesh, Cambodia, China, Mature Mature, Emerging Emerging
South Asia India, Indonesia, Japan, Laos, Emerging,
Nepal, Philippines, Republic of Pilot Project
Korea, Singapore, Sri Lanka,
Middle East Egypt, Palestine, UAE Limited Pilot Limited Limited
Oceania Australian remote Mature Mature, Pilots Pilots
communities, Pacific islands Emerging
(e.g., the Cook Islands,
Tokelau, Tonga)
Antarctica Research stations N/A Mature N/A N/A
Source: Deshmukh, 2014; IRENA, 2015a; Marnay et al., 2015; Tenenbaum et al., 2014
Box 3.2 – Renewable energy for energy access
Place: Pediatorkope, Volta Delta, Ghana
The community mini-grid of Pediatrokope in Ghana was commissioned in 2016. It consists of a 39 kWp solar
PV plant and a small 11 kW wind plant to serve up to 146 connections. The system includes a diesel generator
for occasional back-up; the mini-grid is designed to use lead-acid battery storage to enable the grid to obtain
95% of the electricity from renewables. The robustness of the mini-grid is ensured by Circutor’s Electricity
Dispensers. They use an Energy Daily Allowance approach to limit energy consumption and power draws,
and users are charged a monthly fixed fee to keep tariffs simple and to ensure financial sustainability. The
mini-grid is one of five in Ghana designed, implemented and managed by a consortium of local companies in
collaboration with European experts.
access to most rural communities. There is a market for focus is driven by a need to prepare the grid to handle
switching hundreds of MW of off-grid diesel mini-grids increased amounts of renewable energy in the future.
to use renewable sources, most notably in Bolivia, Brazil, The United States is leading the way in research and
Colombia and Peru. innovation. In Europe, there has been some important
work but less focus than in Japan, the Republic of Korea
In South and East Asia there have been some pilot and the United States.
demonstrations of PV-diesel grids (AB, AF), although
growing industrial powerhouse India has started to
deploy interconnected mini-grids for resilience and
renewable energy integration (see Glossary of Terms) for 3.2 Innovation beyond technology:
industry (IC, ILI), despite low reliability of the main grid. New business models
China, in particular, is exploring the use of rural mini-grids
(AB, AF) to complement stand-alone and grid extension Scaling up the deployment of mini-grid systems requires
programmes, and is rapidly deploying grid-connected systemic innovation along with technology innovation.
diesel-based and hydro-based mini-grids (IC, ILI). There is Systemic innovations include those for business models,
significant research and initial pilot projects for improved financing schemes, regulations and system integration.
resilience (IC, ILI) in Asian technology giants Japan and For newly electrified, low-income, rural areas (where
the Republic of Korea. Interestingly, the interconnected many autonomous renewable mini-grids with basic
mini-grids (IC, ILI) in these areas differ in their focus service are used), a number of companies are offering
based on the capabilities of the main grid. Countries like mini-grid solutions. Although these typically require
India are driven by establishing basic, reliable grid service financial support to make the power affordable to
for communities and businesses, whereas Japan and customers, many are being deployed today. The business
the Republic of Korea are trying to achieve even higher models operate on very tight operating budgets, so the
reliability for their industries. technology needs to be scalable and modular to meet the
dynamic energy requirements of these areas (Bardouille
Africa has the highest potential for AB and AF, although and Muench, 2014). Many of these business models
deployment faces many barriers including other leverage the inherent flexibility of the renewable mini-
investment needs, the need for grid extension, and grid technology and provide basic service today with the
challenges to maintain and operate the systems in hope of higher service in the future as demand grows.
the long term. Islands are considered viable currently,
although the traditional grid extension approach is A number of small businesses are piloting the use of
delaying deployment in many continental areas. these modular technologies. In India, these include DESI
Power, Mera Gao, Husk Power, Minda Nexgen, Naturetech
In the United States there are several interconnected and OMC Power. African mini-grid providers include
renewable mini-grids being deployed in the east in Devergy, Enersa, Persistent Energy, Powerhive, Trama
response to emergency disasters, while in the west the TecnoAmbiental and Rift Valley Energy. None of these
pioneers have sufficient customers to be profitable to financing, technology used, regulatory environment,
today without grant funding, but they have the potential reliability requirements and electrical demand. Despite
to achieve profitability if they reach sufficient scale. the range of diverse factors, observations and predictions
Bardouille and Muench (2014) estimate that these can be made based on a typical system.
organisations need to scale up to at least 250 000
customers to reach profitability, and require other forms A limited number of publications have analysed the cost
of cross-subsidising or other means to maintain the of renewable mini-grids. In general, these publications
operability of the service. They further estimate that analyse autonomous renewable mini-grids. A World
many off-grid renewable mini-grid providers typically Bank study from 2005 found that the levelised costs
start with, at most, a few thousand customers, and the of energy (LCOE, see Glossary of Terms) for mini-grid
time required to scale, for example, could take about five generation ranged widely, from USD 0.43/kWh to USD
years and nearly USD 75 million in investment (Bardouille 0.63 USD/kWh for a 25 kWp solar PV mini-grid. Wind and
and Muench, 2014). Still, the R&D that these start-up hydropower often had lower costs, but were limited to
companies are leading today will need to continue to areas with a strong resource (World Bank Group, 2006).
improve over the next 10 years for these businesses to A more recent study found that in sub-Saharan Africa,
succeed (Bardouille and Muench, 2014). Some of the the LCOE of a solar PV-diesel mini-grid that serves 100
technologies used in these mini-grids today, particularly users can vary from USD 0.46/kWh to USD 0.74/kWh,
for DC-based mini-grids, require specialised equipment while a 100% solar PV mini-grid will vary from USD 0.467/
to interconnect. If these grids are privately operated, the kWh to USD 0.714/kWh (Norplan, 2013). A 2014 project
success of the grid is tied to the success of the operator. in India found that a 100 kWp solar PV mini-grid had an
LCOE of USD 0.50/kWh (Islam, 2014).
Interconnected back-up, with less frequent operation
and a focus on resiliency, adds even more potential Larger autonomous renewable mini-grids with greater
revenue to the mini-grid market. However, the relatively than 1 MW of peak power demand are uncommon
low power price of main-grid electricity during on- – although there are numerous mini-grids based on
grid operation creates a barrier for renewable mini- diesel – and increasingly are integrating low penetrations
grids, which typically have slightly higher prices. The of renewables (see Box 3.1 for a description of these
proliferation of distributed solar PV has created an fuel-saver mini-grids). A 2015 study from the Frankfurt
opportunity for conversion into resilient mini-grids. School of Business assessed the LCOE of diesel grids
Nevertheless, there is still a limited uptake of mini-grid with greater than 1 MW of peak power demand and 30%
technologies that use significant renewables, except in of their energy from solar PV. The study estimated the
pilot applications and in end-uses with high costs for loss generation costs of seven different large-scale diesel
of electrical supply (e.g., data centres) or in places that mini-grids and found that the LCOE varied between USD
place high value on environmental protection. However, 0.34/kWh and USD 0.51/kWh (Frankfurt School, 2015).
as the costs of renewable mini-grids decline and as the
technology improves, the uptake will increase. The costs of interconnected systems will vary greatly
based on utility grid costs in a region. From a cost
perspective, a well-designed interconnected renewable
3.3 Costs of renewable mini-grids mini-grid will use energy from the lowest-cost source,
whether the main grid or the mini-grid. Therefore,
The costs of renewable mini-grids, and mini-grids
in general, have declined consistently over the past Table 3: Table of unsubsidised cost ranges for
decade. As of 2016 the costs have fallen low enough renewable mini-grids from 2005 to 2015 for a
that the technology is gaining interest as an alternative 100% renewable energy community system
to traditional approaches. The cost will be dependent
USD/kWh for
on the amount of energy from renewable sources; using 2005 2015
100% RE
the proper amount of renewable energy can minimise AB USD 0.85–1.28 USD 0.47–0.71
overall energy costs. The costs also will depend on local AF USD 1.05–1.57 USD 0.61–0.92
factors and requirements, as well as on international
market conditions. Factors include the location, access
costs for the autonomous AF systems can be viewed of renewable mini-grids. The findings for a 100% solar
as an upper threshold for the interconnected ILI and PV energy-based mini-grid is summarised in Table 3.
IC renewable mini-grid systems. Similar to previous It is noteworthy to mention that a mini-grid that uses
studies, this report modelled autonomous renewable other sources (including wind, hydro or non-renewable
mini-grids to predict the effects of innovation on the cost sources) may have lower costs than those described here.
Box 3.3 – Cost of integrating renewables in mini-grids

If the amount of renewables (or storage) is too high or too low, the price will be higher. Additionally, a renewable
mini-grid that includes a diesel generator will have lower costs than a renewable mini-grid that gets 100% of its
power from renewable sources. This concept is shown in Figure 2 below, which shows the total LCOE from the
lowest-cost solar PV renewable mini-grid design in 2015. Each point on the lines represents a system with varying
percentages of energy from renewable sources (solar, in this example).
Figure 2: Plot of renewable fraction vs. levelised cost of energy for 2015
$1,00
$0,90
Levelised Cost Of Energy (USD/kWh)
$0,80
$0,70
$0,60
$0,50
$0,40
$0,30
$0,20
$0,10
$0,00
0% 20% 40% 60% 80% 100%
Renewable Fraction (% energy from RE)
2015
minimum cost renewable
fraction
In addition to the expected cost varying with the amount of energy from renewable sources, the cost is expected
to decrease with technological innovation over time. The R&D efforts are expected to not only lower the cost of
electricity from renewable mini-grids, but also increase the economically optimal percentage of energy derived
from renewable sources.
A list of the assumptions and modelling techniques used is provided in Annex 7.
3.4 Benefits of renewable but also in terms of the increase in reliability that they
can provide in both interconnected and autonomous
mini-grids
areas. In all areas they provide a technologically viable
Renewable mini-grids are important for the value pathway to increasing the use of renewable energy.
they can offer. Many of the benefits stem from the Some of the key benefits of renewable mini-grids are
local nature of renewable grids. They enable local summarised in Table 4.
choice and control of the energy supply, while allowing
business and communities to use local resources for A strength of renewable mini-grid technologies is that
their energy. Different communities and businesses will they provide a platform that can respond to the needs
have different needs, but the technology platform can of different areas. The following sections provide some
provide a range of values. Renewable mini-grids are insights into how the key benefits are shaping the use
important for the increased value that they provide, not of renewable mini-grids in each of the four renewable
only in terms of energy cost reduction in remote areas, mini-grid types presented in Section 2.
Table 4: Key benefits that renewable mini-grids provide
Benefit Description and detail

Reduced energy imports Enable the use of renewables, which can reduce the need for imported fuels
and stabilised energy costs that fluctuate in price. This stabilises energy prices.
Autonomous mini-grids can provide the lowest-cost energy option in remote
Reduced cost of energy
areas.
Enable the use of robust, local generation which can be used to increase
Increased reliability and reliability and improve response to catastrophic events. If developed with
resiliency the support of the main grid utility, they can provide reliability and resiliency
support to the main grid.
Improved environmental Provide a platform for renewables that offers a clear technological pathway to
outcomes high use of renewable energy.
Allow energy options that may otherwise be difficult through main grid utilities,
and enable communities and businesses to have control of their energy supply.
Greater energy choice Mini-grid operators can opt for more renewable energy and higher reliability. In
areas with weak or poor regulatory environments, renewable mini-grids provide
a technological alternative to improving energy.
Create opportunities for energy supplies built around local resources and local
Increased local energy
need.
Provide an alternative to the main grid in interconnected areas. In remote areas
they provide an alternative to extending the main grid and stand-alone systems.
Diversification
They also enable commercialisation of technologies and generation that may be
overlooked in main grids.
Benefits of AB (Autonomous Basic) service supply, which can reduce fuel imports and stabilise
energy costs. The high cost of electricity from diesel
For smaller and less prosperous areas, renewable fuel has pushed many of these areas towards renewable
mini-grids can enable enhanced energy access. For energy. This is, arguably, the single most important driver
some areas, this is the transition towards modern for these areas. The use of at least some renewable
energy access. This includes improving access to energy in these mini-grids is often cost-effective today.
electricity while reducing energy costs. Renewable As technology improves, more and more renewables
mini-grid technologies provide new fuel supply options can be added cost-effectively.
(diversification). Whether a region is entirely dependent
on the burning of local biomass for energy, has sparsely The addition of renewable energy to the supply provides
distributed stand-alone systems, or has a part-time diversification, which increases reliability and resiliency
diesel grid, renewable mini-grids provide new flexibility. to fuel supply disruptions. The near-monopoly that
They also provide an alternative to extending the main diesel generation historically has had in many isolated
grid, which can be costly to install and maintain — areas has made the cost of electricity fluctuate with
particularly for very isolated areas. Renewable mini- international energy markets. Having no alternative to
grids provide a technological option for improving diesel has had negative ramifications in these areas.
quality of life and lowering energy costs. Supply disruptions can cause significant spikes in the
cost of energy. This is a key reason that remote co-
The target of renewable mini-grids in these areas is operative grids in Alaska increasingly have added wind
modest reliability, which even though modest provides to their mini-grids. The challenge of supplying fuel over
a huge shift in the quality of life and ability of business frozen rivers and ice roads has made wind generation a
to thrive. There often is a focus on ensuring viability preferred option in the region.
even when consumers have limited ability to pay. The
mini-grids in these areas, driven by innovations in Many remote areas will be disproportionately affected
metering technologies and efficient appliances/lighting, in the face of climate change. This reality has led many
increasingly are enabling more services for less. They islands to make aggressive international commitments
also are enabling users to buy only what they need and to greatly reduce the use of fossil fuels and increase the
can afford. use of renewable energy.
Benefits of AF (Autonomous Full service) Benefits of IC (Interconnected Community)

In remote, isolated areas currently reliant on diesel
application
for electricity, renewable mini-grids enable alternatives The benefits that lead a community to use mini-
to burning expensive, dirty imported fuels. Mini-grid grid technology are as diverse as the communities
technologies provide an option to diversify the energy themselves. Renewable mini-grids represent an
Box 3.4 – University mini-grids: living research to interconnect neighbours

Place: Chicago, IL, US
The Illinois Institute of Technology in Chicago, IL, US has been slowly expanding its mini-grid since
development began in 2008. The campus mini-grid was completed in 2013 and includes batteries, solar, wind
and a natural gas generator, all with smart controls. It provides critical back-up and can power the campus
completely during grid outages. The utility provider ComEd has partnered with Illinois Tech, Argonne National
Laboratory and the US DOE, which has provided funding, to link the campus with a neighbouring mini-grid in
Chicago’s Bronzeville neighbourhood. Adjustments in regulations and innovations in grid interconnections are
creating a living testbed and critical infrastructure back-up to enable solar and storage to power increasingly
interconnected areas of Chicago (Marotti, 2016).
opportunity for communities to have control of their more resilient supply. In this way, they can provide value
energy, as well as direct investment in ways that meet to the mini-grid operator, to its neighbours as well as to
their local needs. the main grid utility.
Many communities are exploring mini-grids as a way to

Benefits of ILI (Interconnected Large
increase the amount of renewable energy in their supply.
Renewable mini-grids provide an alternative to the
Industrial) application
exclusive use of centralised generation sources common Many industries require reliable and stable electricity to
in the main grid. The technology enables community be successful. Supply disruptions can create significant
choice, while maintaining the option of using low-cost costs. This is particularly true for high-tech manufacturers
energy from the main grid. A strength of this approach such as silicon wafer producers, or for data centres that
is that it provides a hedge against potential increasing can have expensive data losses if power is lost. Loss
utility rates. It also provides a flexible and technologically of power at strategic facilities, such as military bases
viable platform for increasing the amount of renewable and campuses, can, in some cases, lead to personal
energy. damages. In areas with less reliable grids, frequent
disruptions make business more difficult. Businesses are
Reliability is a key consideration for communities exploring renewable mini-grid technologies to increase
exploring the use of renewable mini-grids. Mini-grids reliability. In areas with strong utility grids, mini-grids
can enable communities to improve their response to often have a focus on ultra-high reliability and security,
catastrophic events. For example, many communities such as for high-end manufacturing or data centres. In
in the north-eastern United States are investing in mini- areas with weaker grids, businesses that traditionally
grids to “harden” their emergency centres to better may have required a back-up diesel genset for reliable
respond to events like Superstorm Sandy. In areas with power can use renewable mini-grid technology instead.
less-reliable grids, the value of renewable mini-grids is
even higher. Many grids globally have daily outages. Some businesses also are interested in their
Renewable mini-grids can provide a near-seamless environmental performance and have used renewable
transition after a main grid outage to a functional local mini-grids as a platform to use renewable energy to
energy supply. As the frequency and duration of main power their business. Renewable mini-grids also provide
grid outages increase, so does the value provided to a hedge against potential increasing utility rates.
the community. For all of these communities, renewable
mini-grid technologies provide an increasingly viable As with community renewable mini-grids, large industrial
alternative to fossil fuel back-up generators. mini-grids hold the tantalising potential to improve the
local supply and, when interconnected with neighbouring
Community renewable mini-grids hold the tantalising grids, yield an even more resilient supply. In this way,
potential to improve the local supply and, when they can provide value to the mini-grid operator, to its
interconnected with neighbouring grids, yield an even neighbours as well as to the main grid utility.
4 STATE-OF-THE-ART TECHNOLOGIES
This section provides an overview of the current state and require significant tailoring for renewable mini-grids.
of the art for technologies used in renewable mini- New storage technologies under development and their
grids, including where technology stands in terms commercialisation are expected to enable the use of
of development, and what is already commercially increased amounts of renewables at an affordable price.
available. These are classified by their functionality and The convert functionality comes next because of the
category. need for specialised equipment to convert electricity
between the functionalities. Consume follows because
Functionalities refer to the core capability that a although many experts have identified it as having
mini-grid technology provides to a renewable mini- the greatest potential impact on costs, most of the
grid. The core functionalities include plan and design; innovation is less technical and will not be specific to
store; control, manage and measure (CMM); convert; renewable mini-grids. Cost declines for solar PV already
consume; and generate, as depicted in Figure 3: have dropped to levels that will spur deployment of
renewable mini-grids, for example. Further research on
The plan-and-design functionality is presented first the outlook for generation can be found in Annex 6 and
because it precedes the other five. The remaining in other IRENA reports (IEA-ETSAP and IRENA, 2015a,
functionalities are presented in order based on the 2015b; IRENA, 2012a, 2012b, 2012c, 2015b).
need for renewable mini-grid-specific developments,
balanced with the value of the expected innovation The plan and design, CMM and consume functionalities
to the renewable mini-grid technology in the coming include a set of key attributes to summarise their
decades. CMM technologies are expected to evolve current status, at the end of the subsection. For the
significantly and to facilitate larger, more intelligent store, convert and generation functionalities, key
and more modular renewable mini-grids. These include indicators are defined to enable the reader to compare
technologies that form the brain and sensory system, technologies within each functionality.
Figure 3: Renewable mini-grid functionalities
Plan and design
Control, manage and measure
Store
Generate Consume
Convert
Box 4.1 – Mini-grid design optimisation
The HOMER software, originally developed at the US National Renewable Energy Laboratory (NREL), is the
standard software for evaluating the techno-economic design of mini-grids. It is used to optimise design in
all sectors around the globe, from village power and island utilities to grid-connected campuses and military
bases (HOMER Energy, 2015).
mini-grids is the need to balance centralised planning,

4.1 Plan and design
such as national electrification programmes, with local
Plan and design is the glue that holds the other needs and desires.
five functionalities together, before construction and
during operation. The process includes preliminary A number of tools have been developed over the
modelling, business model development, resource past few decades to assist designers and planners
planning and project engineering. Plan and design can for technical and economic evaluation of mini-grids.
be considered to be at a higher level than the other Natural Resources Canada’s RETScreen is often used
functionalities. GIZ has developed a catalogue that for analysing energy projects, but does not include a
provides an introduction to the tools currently available chronological simulation (see Glossary of Terms), which
(GIZ, 2015). Some of the commonly used tools are is critical for mini-grids. Some commercial design tools
summarised below. have been developed by equipment manufacturers,
such as SMA’s off-grid configurator tool. Other targeted
design tools exist, but they are limited to specific
Mini-grid design
markets (often non-commercial), for example the
The design of a mini-grid sits at the intersection of a Lawrence Berkeley National Laboratory (LBNL) DER-
number of disciplines, including economics, sociology, CAM or EnergyPRO from EMD. These tools provide a
policy, regulation and multiple engineering specialties. low-cost initial design that can be refined later by a
Large-scale utility models require similar considerations, sector specialist.
but the complexity of the utility network at that size
exceeds the needs of mini-grids. The design process Traditional utility planning tools such as Energy
typically is split into higher-level techno-economic Examplar’s PLEXOS, ABB’s ProSym or SYMBAD are
evaluation tools focused on long-term issues and into often much more complex than is appropriate for all
technical evaluation tools for design details focused on but the largest of mini-grids. Power system analysis
the shorter term. There also is a need for broader energy and simulation tools such as Siemens PSS E, ETAP®,
planning that incorporates mini-grids. Much of the state DNV GL’s Synergi and PowerFactory for DIgSILENT can
of the art comprises utility-scale tools adapted to the be used for evaluations, but their cost and complexity
needs of mini-grids. However, there are applications may make them unsuitable for use in planning and
that have been developed specifically for the mini- designing smaller renewable mini-grids. There also are
grid market. A major planning challenge for renewable tools available for broader sector planning, such as
Table 5: Selection of tools for mini-grid design
Application Tool
High-level technical and
DER-CAM, EnergyPRO, HOMER Pro, SMA Off-grid
economic evaluation
ASIM, GIZ Mini-grid Builder, Paladin
Technical evaluation tools Only for large mini-grids: PLEXOS, ProSym, SYMBAD PSS E, ETAP, Synergi,
PowerFactory
Broader Planning GeoSim, RE2nAF, LAP, Network Planner
Table 6: Selection of tools for resource planning
Application Tool
Private: 3TIER, AWS Truepower, Digital Engineering, Meteonorm, SolarGIS and
Windlogic
Resource assessment Public: Solar and Wind Energy Resource Assessment (SWERA), IRENA Global
Atlas, National Aeronautics and Space Administration Earth Observing System
(NASA EOS) Web, Joint Research Centre (JRC) of the European Commission
PV design PVSyst, PVWatts, PV Sol and PVPlanner
AWS Truepower’s Windographer, Wind Atlas Analysis and Application Program
Wind design
(WAsP) from Risø National Laboratory, WindSim
GEOSIM, Network planner, LAP, ASIM from PowerWater, up. For example, Practical Action uses GIS tools to
and GIZ Mini-grid Builder, which can help policy makers create a catalogue of hydro sources based on local
understand the role that renewable mini-grids can play measurements.
in regional electrification plans, and how to capture
some of the potential socio-economic benefits.
Load planning
Understanding load data for renewable mini-grids is also
Resource planning
a critical consideration. GEOSIM’s Demand Analyst has
Planning requires an assessment of the renewable tools available, and significant public data are available.
resources available, for which there are various private For example OpenEI has useful data on modelled
providers of resource assessments, as well as public loads in the United States. However, load planning is
resource tools, some of which are listed in Table 6: Other further complicated because loads often change over
tools include those for solar PV design, where much of the course of a project, as customers become more
the focus is on financial mechanisms for deployment. accustomed to having reliable electricity.
There is a particularly wide range of options for
interpreting wind resource data. The Wind Atlas
Key attributes
Analysis and Application Program (WAsP), created in
Denmark, predicts how wind flows over terrain using a Table 7 summarises the key attributes for plan-and-
potential-flow model. AWS Truepower’s Windographer design technologies in accordance with the descriptions
is a software tool for predicting turbine production from above.
wind data. WindSim is a similar application that instead
uses computational fluid dynamics calculations, which
can be more accurate in complex terrain. Wind projects 4.2 Control, manage and measure
require on-site measurements prior to significant (CMM)
investment, whereas solar resource data are much
less site-specific. There also are efforts to quantify The CMM functionality is at the centre of renewable
resource availability and properties from the bottom mini-grids. Measuring, managing and controlling
Table 7: Key attributes for plan-and-design technologies
Application Tool
Need for specialised Requires renewable mini-grid specialist for all stages of design, including
engineering conceptual design.
Resource data (solar, General solar resource data are of sufficient quality; however, wind and hydro
wind, water) require on-site measurements to validate, and data can be costly.
Load planning Based on ad hoc and site-specific approaches for estimating loads.
components allow mini-grids to operate within a responsibility for controls is distributed among the
network of interconnected devices while optimising the converter components and dedicated controllers.
energy performance of the whole structure.
Mini-grid management hardware and software act
Many of the components utilised within mini-grids as the interface between energy generation and
have been repurposed from other industries, such as consumption by enabling communication between
telecommunications and manufacturing (Yan et al., the devices providing these services (Sandia National
2013). There is no clear trend regarding the type of Laboratories, 2014). Intelligent dispatch must consider
company that dominates across all mini-grid markets. dynamic ramp rates and power-factor control (see
The CMM services of interconnected mini-grids are Glossary of Terms), and often is constrained by technical
dominated by large, traditional utility service providers. requirements rather than by economic and performance
These include ABB, Power Analytics, S&C, Siemens, trends (Deng et al., 2015; McLarty et al., 2015; Seal
Honeywell, LSIS and Toshiba, among others. However, et al., 2012). Controls often are split across different
the growing use of information technology is allowing types of equipment in an incoherent manner, and
major technology companies, such as Google, to there is not a comprehensive set of standards for
participate. Utilities, such as KEPCO, ComEd, Hydro designing renewable mini-grids. Manufacturers often
Tasmania, State Grid Corporation of China, China use proprietary approaches, limiting competition and
Southern Power Grid and SDG&E also are exploring making it difficult for users of their technologies to
mini-grids. The following subsections describe the switch to others (Palizban et al., 2014; Smart Inverter
different applications of CMM technologies. Working Group, 2014; Yoo et al., 2011).
The key long-term objectives of controllers are to

Controls
provide reliable and economic operations of mini-grids
Controls include protection strategies and intelligent for optimal renewable energy production and usage
decision making, whether by specific devices or by (Mao et al., 2014). Some of the management functions
multiple devices working together. They can ensure that these devices provide are demand and priority
the optimum integration of renewable energy load management, generator overload protection,
technologies, ensure operational transparency and peak shaving (see Glossary of Terms), energy storage
economic reliability, and maximise the mini-grid’s management and feeder management (see Glossary of
energy efficiency (Hooshmand et al., 2012; Mao et al., Terms). These objectives must be accomplished without
2014; Olivares et al., 2014; Yan et al., 2013). Controls can compromising the protection hardware. In many cases
be divided into short-term controls, to ensure a stable the objective is to connect the network of various
grid, and long-term controls that can make strategic components and to automate the communications
management decisions for the mini-grid. The cost and among them. A focus of controller development in
Box 4.2 – Solar/diesel mini-grids for mining

Place: Remote mines
The mining industry worldwide is increasingly retrofitting existing diesel mini-grids to use solar energy.
In Australia, for example, the first phase of Rio Tinto’s Weipa Solar Photovoltaic Project uses 1.7 MWp of
thin-film First Solar modules. In Canada, the 1 MWp SunMine solar facility in Kimberley was commissioned in
2015. An example of a wind-powered mini-grid serving a mine can be found at the Mount Cattlin lithium mine
in Australia, which was retrofitted with a 110 kWp solar array and 6.4 kW of wind power.
Currently, a fuel-saver configuration is most common (see Box 3.1). Under this approach, up to 30% of
energy can come from solar, with reduced need for new controls for the mini-grid or storage capacity. Future
developments can use more solar, both with storage and as mini-grid controls improve and decline in cost.
2015 was to integrate and stabilise renewable energy this window (McLarty et al., 2015 and Parisio et al.,
generation in mini-grids (ABB, 2013). A number of 2014).
companies offer controls that can provide economic
dispatch for renewable mini-grids, including Eaton,
Data communication and standards
GE, Siemens, ABB, Optimal Power Systems, SMA and
Princeton Power. However, the economic optimisation Data communication is crucial for renewable mini-grids.
approach varies among all of the controllers, and they Data communication includes capturing data gathered
mostly require certain specifications to interact with by sensors, transmitting the data to controllers, and
each other appropriately. then transmitting the commands generated by the
controllers to the actuators in the automated systems
When making control decisions it is helpful to have an (Setiawan et al., 2014).
accurate prediction of future weather and load demand.
Uncertainty and incorrect predictions increase the need Data transfers within the renewable mini-grid and
for storage and for more conservative operation of outside it can be carried out in either wired or wireless
the mini-grid, leading to overly complicated design as environments (Bani-Ahmed et al., 2014; Chung et al.,
compared to the optimal (Colson and Nehrir, 2009). 2013). Wireless technologies are found mainly in smaller
The ability to accurately predict electricity demand, projects and are increasingly popular because of their
resource availability (solar, wind, hydro) and market low installation costs and their ability to function well
pricing enables smarter decision making, particularly in remote locations (Setiawan et al., 2014). Growth in
to estimate storage needs. Current best practice has cellular and other wireless infrastructure worldwide is
reasonably accurate predictions for one to two hours, increasing reliability and improving the performance
although unpredicted variations still can occur within of wireless technologies (Parikh et al., 2010). Wired
Figure 4: Communication standards within the electricity supply
Source: Adapted from Appelrath et al., 2012
communication technologies have greater bandwidth open-source compliant solutions reduce hurdles and
and higher data-transfer capabilities, but also larger can work across platforms. Some companies build in
upfront costs (Setiawan et al., 2014). interoperability and are able to communicate easily
with different manufacturers. Still, the number of such
Manufacturers offer user-friendly tools to calculate basic companies is limited.
performance indicators for a robust remote monitoring
of the system (Kayastha et al., 2014). Such indicators Overall, fast and accurate transmission between devices
include renewable energy yield, performance ratio (PR) enables intelligent controlling and monitoring between
and the state of charge (SOC) of batteries. For example, the generation and consumption functions of a mini-
Studer’s Xtender analysis tool uses Excel to calculate grid. As mobile technologies deploy, continual advances
data, which is retrieved by the online Xcom interface in data communication and transfer technologies will be
or manually, directly from the inverters and battery observed (Padilla et al., 2014).
management device.
Metering and monitoring

Current remote measurement and control requires
significant on-site expertise to help mini-grid experts Next-generation energy meters go beyond simply
monitor, evaluate and improve the control of an operating measuring end-users’ energy consumption. In renewable
renewable mini-grid. This improves performance and mini-grids they are critical for demand-side management
costs, and is particularly beneficial in remote areas (DSM). A wide range of meters is found in the market,
(AB, AF) that may have less local technical expertise. with different functionalities and payment methods:
However, the use of these types of technologies today prepaid or pay-as-you-go, post-paid, service-based,
remains limited. and those accompanied or unaccompanied by software.
There also is a variety of non-flat tariff schemes (energy-
Interoperability and standards are critical for easily based or power-based) that these new meters can
integrating the diverse equipment required in a support. Advanced tariffs often used in mini-grids can
renewable mini-grid. Currently these standards are vary with the time of use, and include block rates that
evolving, but a range of them address needs across provide an initial amount of energy at a different rate than
the grid. A further challenge is that the choice of a subsequent amounts of energy within a period of time.
control supplier often is tied with the inverter company.
Because of a lack of standardisation, and as there is no Meters may be equipped with power and, optionally,
dominant communication and control approach, it can energy limits set by the manufacturer. They also can
be difficult to source various components from different be configurable by the operator to help manage
manufacturers. This leads to reduced interoperability in customers’ use of energy. Most hydroelectric mini-
the system. The interrelationships remain complex (see grids are based on constantly flowing rivers that can
Figure 4). continuously supply the customers with energy, but the
power demand is limited by the power of the turbines.
Many data transfer solutions are most easily implemented In such cases, the meters can help to limit power peaks
with converters from the same manufacturer, although to prevent grid overloads.
Box 4.3 – Meters help supply match demand

Circutor’s Electricity Dispenser BII incorporates an algorithm that limits daily energy consumption and power
based on the Energy Daily Allowance (EDA) concept, which has been evolving for more than 15 years (Graillot
et al., 2012). The EDA is not pre-fixed, but all parameters can be modified according to the necessities of the
user through a radio-frequency identification (RFID) card. The price of electricity in an EDA system can be
flat or modified through a price signal that the dispenser detects, through frequency variation, MODBUS
communication or a time schedule. There are more than 2 000 Dispensers installed in 10 different countries,
most of them using an EDA with a service-based tariff.
Limiting clients’ energy consumption is not as important used it. Remote payment is possible using scratch cards
in hydroelectric grids as it is for solar- or wind-based or mobile money platforms (see Glossary of Terms)
mini-grids. In solar- and wind-based mini-grids (Harper, 2013).
the energy production is stochastic and finite, and
availability depends on storage capacity. Some meters Next-generation meters that monitor power quality
can perform load-shedding, dividing the loads into (see Glossary of Terms) are necessary when sensitive
critical and non-critical categories. This can be done by data should be protected, and usually are equipped
the usage of an auxiliary relay for non-priority loads, with uninterruptible power supplies (UPS) thanks to
dispatchable under specific conditions (Harper, 2013). their large memory, processing speed and accuracy.
Meters start to incorporate Global System for Mobile These are common in data centres or financial
Communications (GSM) technologies for lower-cost and institutions. In addition to monitoring current, voltage
easier remote monitoring communications, supported and power factors, power quality meters can record
through the use of cloud-based applications. very rapidly switching transients (short periods of
surge voltage usually caused by the sudden stop or
Besides supporting non-flat tariff schemes some start of large currents from motors). This is an added
advanced smart meters are capable of limiting energy value of power quality meters over normal ones. In
consumption of the consumers and are considered order to capture those events, next-generation power
optimum for mini-grids dependent on storage (Harper, quality meters record voltage samples frequently
2013). The Micro Power Smart Meter of INENSUS also (EATON, 2006).
limits energy consumption by trading energy blocks
that can be consumed within a limited time. Powerhive
Connections with equipment (interoperability)
uses a cloud-based pre-payment solution that alerts
customers when their credit is low (Powerhive, 2015).
and other grids (interconnection)
Similarly, Earthspark International has developed the Plug-and-play (PAP) technologies improve
SparkMeter, which is being tested in Haiti and includes interoperability, which greatly increases the ease of
a “quality kWhs” concept of service levels. This involves connecting together diverse equipment, including both
providing real-time monitoring through a cloud-based hardware and software. Ideally, this would include the
operator interface (Buevich et al., 2014). The solutions ability to rapidly switch out any of the equipment
from Circutor, Powerhive, Sparkmeter and INENSUS including the battery, generator and all major
can receive pricing signals that reflect the real-time components of the mini-grid. PAP allows for design and
status of a mini-grid through frequency variation. By expansion with minimum engineering cost (IEEE, 2014).
receiving such signals when power availability is limited, PAP includes the use of a common plug shape, ensures
the mini-grids can gradually disconnect clients (Circutor, that the data produced can be used by all connected
2015; INENSUS, 2011; Powerhive, 2015). equipment, and that the controls can intelligently use
the connected equipment. PAP requires the use of a
Some meters can perform load-shedding, dividing the common communication medium such as broadband
loads into critical and noncritical ones. This can be ethernet, LTE/4G, machine-to-machine communication
done through the use of an auxiliary relay for non- protocols (see Glossary of Terms) (Appelrath et al.,
priority loads, dispatchable under specific conditions 2012) or communication through the power lines.
(Harper, 2013). In addition, user feedback is recognised
as important, and there is growing use of intelligent Utility meters and interconnections are used to
user feedback in main grids that could cross over to connect renewable mini-grids to neighbouring grids.
renewable mini-grids. There are some status tools that Interconnection considerations are split into three major
are used in communal renewable mini-grids. types: protection; arbitrage and economic decision
making; and interfacing with and support of utility
Other approaches are moving towards the use of pay- services. To date these challenges have been addressed
as-you-go meters, following the trend in mobile phone through standards and tools that enable mini-grids to
technology in which users can buy energy credits before quickly synchronise with the existing grid. In addition,
use. This is in contrast to traditional utility energy tariff there is a significant gap in regulatory aspects (Villareal
schemes, where users pay for energy after they have et al., 2014).
Box 4.4 – Standards for interconnection of renewable mini-grids to the main grid
In the Americas, interconnected renewable mini-grid requirements are based on the Institute of Electric and
Electronic Engineers (IEEE) 1547 standards. IEEE 1547 “Standard for Interconnecting Distributed Resources
with Electric Power Systems” regulations ensure that renewable mini-grids operate safely, and prevent
exporting power into a distribution grid when there are line workers (IEEE, 2003). IEEE 1547 also enables
devices that support a wide range of tariffing mechanisms (Basso and DeBlasio, 2004). The International
Electrotechnical Commission (IEC) standard 62116 of 2014, titled “Utility-interconnected Photovoltaic Inverters
– Test Procedure of Islanding Prevention Measures”, provides safety requirements that are commonly used
internationally for mini-grids.
Mini-grid integration has many benefits for utilities. renewable mini-grids, although efforts are under way to
Renewable mini-grids provide support services to remove this barrier.
the utility, such as control of voltage and reactive
power along the distribution. Although its capability is In order to mitigate challenges with the interconnection
technically possible, fast switching between islanded of mini-grids, inverters can incorporate various
and on-grid operation is limited to high-performance advanced functions with simple software updates. The
mini-grids due to high cost. A key value proposition that under/over frequency or voltage ride-through function
grid-connected renewable mini-grids offer utilities is prevents inverters from disconnecting immediately
the ability to quickly and automatically reduce demand after voltage or frequency variations to avoid larger
when the utility grid is congested. If the quality of power grid instabilities (Smart Inverter Working Group, 2014).
from the grid falls below certain specific standards,
renewable mini-grids may disconnect intentionally. Other inverter functions to enhance grid stability
However, softer disconnects would be preferable if the with a large penetration of distributed generation
utility regulatory environment encourages it. is the soft-start method, which ensures the smooth
reconnection of inverters after a shutdown (NREL,
Currently, standardisation of protocols that enable 2014). The main barriers to scaling up and increasing
adaptability between grids is limited (Mazumder and modularity are due to the limited standardisation
Chang, 2014). Limited interoperability increases the of protocols to enable adaptability between grids,
costs for changing the architecture when upgrades limited interoperability increasing costs for changing
are necessary. Working across platforms from different the architecture when upgrades are necessary, and the
manufacturers can be challenging. Additionally, there challenge of working across platforms from different
are challenges from a utility standpoint with adapting manufacturers (Wang et al., 2014). Some mini-grids for
the substantial existing infrastructure to interact with rural electrification require a converter to interconnect
Table 8: Key attributes for CMM technologies
Key attributes Status as of 2015

Cost of controls Specialised and expensive controls
Control intelligence Non-economic and non-predictive
Plug-and-play capability Moderate
Utility acceptance of renewable mini-grids in grid High interest, but limited to pilot projects
Communication and standardisation Numerous competing standards
Some pricing and power controls. Increasing support
Metering and monitoring for non-traditional payment approaches such as
pay-as-you-go
Prediction of renewable resources One to two hours with high accuracy
with other grids, especially mini-grids that use DC renewable sources, the ability to provide continuous
distribution. This consideration should be included power, reducing demand for power during peak times,
in rural electrification efforts if future main grid or ramping and smoothing load and generation, and a
interconnection is desired. lessening of the impact of long-term and short-term
fluctuation of renewable energy (US DOE, 2013).
Key attributes
Currently storage represents a significant portion of
Table 8 summarises the key attributes for CMM the costs associated with deployment and operation of
technologies in accordance with the descriptions in renewable mini-grids (IRENA, 2015c), due to the high
the subsections and, in particular, with the key factors upfront costs and replacement needs, which vary with
detailed above. each storage option. This cost can represent between
20% and 40% of the cost of a renewable mini-grid today.
4.3 Store To date there is no single storage technology that

covers all of the needs of renewable energy generation
Storage allows a renewable mini-grid to use power at (EASE/EERA, 2013). A shortfall was found in storage
a different time than it is produced. Electrical storage for renewable generation, as shown in Table 9: The US
is a critical functionality for increasing the amount DOE has a database of different storage technologies
of renewable energy that can be used. Additional projects deployed worldwide (US DOE, 2015a).
benefits include an increase in the share of energy from
Box 4.5 – Wind-diesel mini-grid

Place: Kodiak, Alaska, US
In 2009, the Kodiak Electric Association set a goal to obtain 95% of Kodiak Island’s electricity from renewable
energy sources by 2020. They have already met this challenge, now deriving 99.7% of their electricity from
wind and hydropower. The grid includes 9 MW of wind and 30 MW of hydro capacity to meet the annual
demand, which peaked at 26 MW in 2011. The key innovation of this project is the successful mix of storage
technologies, including 2 megawatt-hours (MWh) of gel lead-acid batteries and two 1 MW flywheels. The
storage helps to stabilise grid frequency and voltage, as well as to provide ride-through capabilities for load
fluctuations to support local industry (RMI and Carbon War Room, 2015).
Table 9: Summary of state-of the-art storage technologies and suitability in different applications
Technologies
aggregate in Conventional Renewable Renewable Customer
focus generation generation mini-grids Transmission Distribution services
PSH Suitable Evolving Unsuitable Suitable Evolving Unsuitable
CAES Suitable Evolving Unsuitable Suitable Evolving Unsuitable
Electrochemical Evolving Evolving Evolving Suitable Suitable Suitable
Chemical Evolving Evolving Evolving Evolving Unsuitable Evolving
Electromagnetic Unsuitable Evolving Evolving Suitable Suitable Unsuitable
Thermal Suitable Evolving Evolving Evolving Evolving Suitable
* The data presented here are for guidance only and are based on typical usage and on the assumption of batteries with typical balance-
of-system costs (including wires and racking). The costs may deviate significantly when climate control is required or if delivered to a
particularly remote area. Actual costs and performance may vary based on the specific requirements of each renewable mini-grid.
Source: Adapted from EASE/EERA, 2013, with additional author elaboration*
Electrochemical storage Cost
Lead-acid batteries (LABs) have been the predominant The main cost challenge for LABs is the price volatility
technology for electrochemical storage for decades. of lead in the market (London Metal Exchange, 2015),
Lithium-ion batteries (LIBs) now provide competition, as it makes up 49% of the manufacturing cost (FMI,
and their market share is expected to increase in the 2014).
coming decades (IRENA, 2015c). Other alternatives
are improving rapidly, including advanced lead-acid
Technology
batteries (ALAB), flow batteries and sodium-ion
technologies. There is considerable room for technical improvements
in LABs. The round-trip efficiency is a major
consideration since, during the storage process, stored
Lead-acid batteries (LABs)
energy drops by between 10% and 30%. The usable
The positive electrode (see Glossary of Terms) in LABs energy density (Watt-hours/kg) is low compared to
is made out of lead dioxide, and the negative electrode many other electrochemical-storage technologies (ARE,
is formed from metallic lead. There are two main classes 2013). Finally, performance and durability are impacted
of LABs: those with wet cells and valve-regulated if the temperature in which the battery operates is too
(VRLA) batteries. Wet cells are also known as flooded hot or too cold (IRENA, 2015c). This can increase costs
(unsealed), while VRLAs can use gel or absorbed glass for controlling the room temperature at which batteries
mat (AGM) sealed battery banks. The performance of are installed.
gel batteries is preferred for applications with higher
ambient temperatures or when slow discharge rates Commercialised innovations (see Glossary of Terms) in
are required. AGM batteries are superior for their LABs include the development of ALABs. Development
high charging rates. Flooded, unsealed technology is of ALABs has been supported by the Advanced Lead
the cheaper option but requires some maintenance. Acid Battery Consortium since 1992 (McKeon et al.,
Although most batteries have a limited range of 2014). Adding carbon to LAB electrodes reduces the
operation, LABs have strong limitations (between 40% accumulation of deposits and hence provides better
and 80% of the rated capacity). For this reason, and performance and lifetime, increased charging rate
throughout this report, “usable kWh” is the unit used in and reduced maintenance requirements (Shiomi et al.,
the indicators for installed costs. The lifetime of LABs 1997; US DOE, 2012b). This advanced technology allows
depends strongly on operating temperatures, as well as manufacturers to overcome performance drawbacks
on the cycling depth of the batteries. Table 10 depicts found in conventional LABs (IRENA, 2015c). Axion
the main indicators for LABs. Power uses a purely carbon electrode that claims to
achieve four times the lifetime of a LAB, and Firefly
International uses a carbon foam substrate which has
Table 10: Summary of state of the art achieved four times more cycles than a conventional
for lead-acid storage technologies VRLA (McKeon et al., 2014). DataSafe® HX+ batteries
Indicators Typical values from Enersys use a thin plate of pure lead, which can
KI 1a: Installed cost perform better at higher ambient temperatures, offer
150–1 500 higher power density and a longer working life, and
(USD/usable kWh)
KI 1b: Installed cost (USD/kW) 300–2 000 are virtually maintenance-free (Enersys, 2014). These
KI 1c: Installed cost batteries already have been used commercially at a
0.15–0.35
(USD/kWhlifetime) number of specific sites, but they still are not yet fully
KI 2: Round-trip efficiency > 70–90% commercialised in the market (McKeon et al., 2014).
KI 3: Life cycle (cycles) with
1 000–3 000
moderate discharge
KI 4: Self-discharge rate Social and environmental considerations
3–12
(% per month)
Regulations and standards on lead emissions during
Source: ARE, 2013; Fuchs et al., 2012; Hoppecke, 2013; IEC, 2011; manufacturing have become more common. There
IRENA, 2015c, 2012d; authors estimates
are increasing concerns about LAB manufacturing
Box 4.6 – Advanced lead-acid: next-generation lead-acid batteries
There are some commercially available ALABs such as the Ultrabattery® by Ecoult, developed in Australia by
the Commonwealth Scientific and Industrial Research Organisation (CSIRO). The Ecoult battery combines
the fast charging rate and longevity of an ultracapacitor with the storage potential of traditional LABs. This
provides high efficiency, between 92% and 95%, and high cycle endurance, outperforming common LABs
significantly (McKeon et al., 2014). Ecoult was acquired by the long-established and US-based East Penn
Manufacturing Company Inc. in 2010, further expanding the distribution of the technology.
facilities in which high lead exposure has been found in Table 11: Summary of state of the art
workers and community neighbours. LABs are designed for lithium-ion storage technologies
to be 100% recyclable (Battery Council International, Indicators Typical values
2012), but the actual amount recovered from them is KI 1a: Installed cost
typically lower. For example it has been estimated that 400–2 000
(USD/usable kWh)
China, the largest manufacturer of LABs (mainly for the KI 1b: Installed cost (USD/kW) 400–1 000
automotive sector) has a recycling rate for LABs of only KI 1c: Installed cost
0.25–0.40
31% through official channels. Small-scale recyclers and (USD/kWhlifetime)
aftermarket recycling help to increase this to up to 62% KI 2: Round-trip efficiency > 85%
(Zhang, 2013). Logistics and proper disposal of batteries KI 3: Life cycle (cycles) with
1 000–5 000
are challenges in remote areas. The automotive sectors moderate discharge
in many countries have tackled this issue by returning a KI 4: Self-discharge rate >5
(% per month)
deposit or requiring an exchange to get a battery.
Source: Akhil et al., 2013; ARE, 2013; Fuchs et al., 2012; IEC, 2011;
IRENA, 2015c, 2012d; Jaffe, 2014
Lithium-ion batteries (LIBs)
Lithium-ion batteries (LIBs) can be found in portable
electronic applications, the automotive industry and the Cost
energy storage sector. The LIB has a positive electrode Considerable price drops have brought LIBs close to
made of lithiated metal oxides and a negative electrode being cost-competitive with LABs. The wider range
built from carbon. The electrolyte (see Glossary of operation across the range of SOC also benefits
of Terms) within the battery contains lithium salts their lifetime kWh costs. The costs of LIBs can be high
dissolved in organic carbonates (SAFT, 2014). LIBs excel due to special packaging, expensive materials such as
in applications requiring short discharge durations and cobalt in the cathode, manufacturing processes and
high power performance, such as frequency regulation overcharge protection circuits (Daniel, 2015; IEC, 2011;
(IRENA, 2015c). A list of indicators is summarised in Nitta et al., 2015; Wood et al., 2015). Massive production
Table 11: of LIBs for mobile applications has led to increased
Box 4.7 – The rise of lithium-ion batteries

There are a significant number of LIB manufacturers, particularly in China, Japan, the Republic of Korea and
the United States. LIB manufacturers include Samsung (19% market share), Panasonic (20%), LG Chem (15%),
Toshiba, Sony, BYD and ATL. Notable entrants include Tesla, which announced its Powerwall (7 to 10 kWh) at a
low cost of USD 350/kWh and its Powerpack (100 kWh) at only USD 250/kWh (Tesla Motors, 2015). Tesla will
use Panasonic cells inside its batteries, with the significant cost reductions driven by the scale of production.
These innovations have generated considerable interest in the technology and have shaken up the market for
major manufacturers.
scales and standardisation in the market. This trend will (Fox-Davies, 2013). Nevertheless, some see no threat to
continue and may lead to further standardisation of the lithium availability and consider that existing resources
technology and applications, benefiting the off-grid will be enough to meet projected demand, taking into
market. account new mining techniques (Gruber et al., 2011;
Speirs et al., 2014).
Technology
Flow batteries
Depending on the material of the cathode, an LIB’s
life typically ranges from 1 000 to 5 000 cycles. The Flow batteries work by storing electricity in liquid
discharge rate is flexible, varying from seconds to electrolytes. These electrolytes flow through cells or
weeks. LIBs have the benefit of being able to operate electrodes to complete redox reactions (see Glossary of
continuously at partial states of charge with no need to Terms) and energy conversion. A membrane or separator
be fully recharged (equalised). This is very beneficial, that allows for ion transport separates the electrolytes
since batteries may not be fully charged for extended on the cathode side (catholyte) and the anode side
periods during operation. Challenges include a low (anolyte) (see Glossary for the terms “anode” and
range for operating temperature, so storage control “cathode”), completing the electrical circuit (Nexight
rooms are required to have ambient conditioning to Group, 2010). Flow batteries are flexible and can be fully
ensure a stable temperature for an efficient and safe discharged across their full range without damage. Their
operation. self-discharge (see Glossary of Terms) can be high due
to the use of pumps for moving electrolytes. Table 12
summarises the main characteristics of flow batteries.
Social and environmental considerations
Recycling LIBs is more complicated than recycling LABs,
Cost
due to their large number of components and variety
of materials (Gaines, 2014). The recycling of LIBs is not Membranes for flow batteries have very high
regulated (Ibid.). Their current cumulative recycling manufacturing costs. For example, they can represent
efficiency rate is 5% to 25%. Lab efficiencies are between up to 40% of the battery’s cost for 250 kWh vanadium
40% and 70%. The highest known laboratory recycling redox batteries (VRBs) (Viswanathan et al., 2012).
rate is 89% to 95% (Wang, 2014). However, because of its longevity the cost per kWh over
the lifetime of the battery is low. In larger batteries of up
The use of cobalt is a concern due to its toxicity, to 4 MWh the main cost comes from the chemicals used,
which presents risks to the environment and human which is more than 40% (Ibid.).
health. It also is costly. Some manufacturers are making
progress, such as the SuperPolymer battery 2.0 from
Electrovaya, which has eliminated the use of N-Metal
Pyrrolidone (which is hazardous to human health). It Table 12: Summary of state of the art
also offers greater fire resistance and can tolerate wider for flow-storage technologies
temperature ranges (Electrovaya, 2012; Frost & Sullivan, Indicators Typical values
2014). KI 1a: Installed cost
350–800
(USD/usable kWh)
Another concern is the availability and reserves of KI 1b: Installed cost (USD/kW) 1 200–2 000
lithium worldwide. The US Geological Survey estimates KI 1c: Installed cost
0.08–0.40
that there are over 13.5 million tons of lithium reserves (USD/kWhlifetime)
and nearly 40 million tonnes of resources (USGS, 2015), KI 2: Round-trip efficiency 65–85
with almost 70% of this located in Argentina, Bolivia KI 3: Life cycle (cycles) with 3 000–15 000
and Chile (Gaines, 2014). Lithium consumption reached moderate discharge (cell stack)
36 000 tonnes in 2014, a 40% increase from 2007 KI 4: Self-discharge rate 3–12
(% per month)
(Jaskula et al., 2013; USGS, 2015). A 10% annual average
rate of increase is expected for all lithium applications, Source: Akhil et al., 2013; ARE, 2013; Fuchs et al., 2012; IEC, 2011;
IRENA, 2015c, 2012d
and up to 21.3% in batteries for grid applications
Box 4.8 – The history of flow batteries
There are several types of flow batteries, among them vanadium redox batteries (VRBs), zinc-bromine
batteries (ZRB), zinc-iron, iron-chromium, polysulphide bromide (PSB) and organic flow batteries (OFB),
characterised by the type of electrolyte used. Many flow batteries today use VRB, but new chemistries such
as zinc-chloride, zinc-iron and zinc-bromide also are increasingly used. VRBs were invented in Australia by
the University of New South Wales in 1986 and have resulted in some commercial success. Since then there
have been a wide range of chemistries beyond VRBs that have been used successfully in flow batteries.
Major companies that offer flow batteries include Gildemeister, Red Flow, Red T, Imergy, ZBB, UniEnergy
Technologies and ViZn.
Technology Mechanical storage

Flow batteries still have lower efficiencies than LIBs, Flywheels are a high-performance and efficient
but this efficiency can be controlled in accordance technology and are considered as an alternative to high-
with the usage of each stack, either for short-duration power batteries. Flywheels transform electric energy
applications or for energy-intensive applications and store it as kinetic energy. When excess energy is
(Akhil et al., 2013). Pumping and shunt losses have a produced, flywheels increase their rotor speed in order
considerable impact on overall battery losses, affecting to store this surplus energy. They then convert the
their round-trip efficiency. They are expected to last 10 kinetic energy back to electric energy by decelerating
to 20 years. VRB appear to be limited by calendar years their rotor speed. Flywheels can smooth outputs from
rather than cycles (Akhil et al., 2013). Flow batteries wind turbines and other renewables to improve grid
have an advantage in that they do not self-discharge. stability and allow higher renewable energy penetration,
Their energy density is low, although this is not an such as in a wind-diesel hybrid mini-grid used in the
important issue for stationary applications. Table 13: Summary of state of the art
for flywheel storage technologies
Other promising electrochemical technologies Indicators Typical values

KI 1a: Installed cost
There are a range of technologies that could overtake 1 500–3 000
(USD/usable kWh)
the more dominant technologies discussed above. KI 1b: Installed cost (USD/kW) 1 000–4 000
KI 1c: Installed cost
0.06–0.10
Sodium-ion (Na-ion) chemistries are over two centuries (USD/kWhlifetime)
old. They offer a low-cost solution and are fully KI 2: Round-trip efficiency 85–95
commercial, but they have shortcomings in requiring KI 3: Life cycle (cycles) with > 100 000
extremely high temperature (up to 700 °C) to operate moderate discharge (full discharge)
and have a high self-discharging rate. Research is KI 4: Self-discharge rate 5–15
(% per month)
focusing on low-temperature batteries.
Source: Akhil et al., 2013; Fuchs et al., 2012; IRENA, 2012d, 2012e;
Nexight Group, 2010; Viswanathan et al., 2012
Box 4.9 – Cradle to Cradle® storage

Innovations in sodium-ion technology have been achieved by the Aquion Battery aqueous (saltwater) hybrid
ion which contains non-toxic materials and can be discharged completely (100%), while delivering well over 3
000 cycles. The battery’s key innovation is the use of saltwater. It already is being piloted in several sites and
has started to be commercialised. Thanks to its high environmentally friendly performance, it has become the
first battery in the world to obtain a Cradle to Cradle® certification, which evaluates manufacturers’ ongoing
commitment to sustainability and to their communities.
Box 4.10 – Storage without batteries
Place: El Hierro, Canary Islands, Spain
The El Hierro grid uses pumped hydropower for storage instead of electrochemical storage. It was
commissioned in 2014 and became fully operational in 2015. When there is excess wind energy from the
11.5 MW wind farm, water is pumped up into a lined volcano crater in the middle of the island. The system
is backed up with diesel generators. Beyond achieving a large percentage of energy from renewables,
the design is built to be replicable. The El Hierro grid has reached a technical milestone, in that the diesel
generators can be shut down and power can be generated by renewables, helped by hydroelectric storage,
for periods of time in which the energy supplied is 100% renewable (ITC, 2016). The Red Eléctrica de España
provides real-time monitoring of the system, promoting transparency and replicability (REE, 2016)
Azores Islands. Flywheels usually come in sizes of Technology

100 kW to 1 650 kW (Akhil et al., 2013), but they also Flywheels have relatively high standby losses, meaning
can reach 10 MW of power output (IRENA, 2012e). Their that energy is expended in order to maintain their
main indicators are included in Table 13: rotation. Overall efficiency is higher when they are
cycled in short time scales. They have a 100% depth of
discharge capacity but have a very high self-discharge
Pumped hydro storage is another form of rate of 5-15% per hour (Fuchs et al., 2012).
electromechanical storage suitable where terrain and
geology allow. It is, largely, a mature technology that Flywheels are used mainly as UPS (see Glossary of
is based on pumping water to an elevated reservoir, Terms), for frequency regulation, and for power quality.
and then recovering the energy through turbines when High-power flywheels are commonly used, whereas
power is needed. The suitability of pumped hydro is long-duration ones are still in the R&D phase. High-
highly site-specific, as are the costs. However, it is an power flywheels are capable of releasing large amounts
option that can be considered and can be used if local of power in a short period, of about one minute.
conditions allow. Flywheels are most commonly high-power and low-
speed applications. Rotors are made mainly of steel or
graphite fibre composites.
Cost
Even if upfront costs are high, flywheel technologies have
Social and environmental considerations
a long lifetime and are quite modular. Flywheels offer a
competitive cost of power for short-term fast-response Most of the materials used in flywheels – namely steel,
power needs but have achieved limited commercial copper and aluminium – are recyclable. There are some
progress (DTU, 2013). Most work on flywheels has been power electronics that contain hazardous materials
in the United States, in particular by Beacon Power and that need to be disposed of adequately. The composite
other companies such as Tribology Systems, Velkless rotor materials have limited recycling possibility,
Flywheels, Amber Kinetics, Piller Power Systems, the with techniques still under development. The main
research centre CIEMAT, Zigor Corporation and Centre operational risk is fatigue failure of the rotor, which
for Concepts in Mechatronics (DTU, 2013; EASE/EERA, releases heat and debris and could be catastrophic if not
2013; Viswanathan et al., 2013). contained adequately (Kaldellis, 2010).
Box 4.11 – Carbon fibre flywheels

Beacon Power has developed a modular (100 kW up to several MW) carbon fibre rim, and a near frictionless
vacuum-sealed rotor flywheel, that can reach up to 175 000 full-depth charge and discharge cycles.
Figure 5: Relationship between grid-following, grid-forming and dual-mode inverters
Grid- Grid- Dual-

following forming mode
inverter inverter inverter
Other storage 4.4 Convert

Thermal storage enables the use of otherwise excess
electricity by using it for heating or cooling. In general, Conversion allows a renewable mini-grid to move
thermal storage is less costly than electrical storage, energy around between various parts of the mini-
but its applicability is largely limited to distributed solar grid. Power conversion between the different types of
water heaters. Thermal storage and a heat grid can electric charge can be classified according to the input
increase the flexibility of heat pumps and renewable and output currents as converters (DC-to-DC, AC-to-
energy generation (Easy Smart Grid GmbH, 2015). Some AC), rectifiers (DC-to-AC) and inverters (AC-to-DC).
projects are incorporating thermal storage and are Power inverter technologies included in this section are
being tested. For example, in Portugal’s Azores Islands grid-following, grid-forming and dual-mode inverters
a domestic hot water electric back-up based on solar (see Glossary of Terms). Grid-following inverters are
thermal energy is used to optimise electricity dispatch the most common, due in large part to their use in
(Neves and Silva, 2015). most rooftop solar PV units. If the AC grid fails, these
inverters no longer work until AC grid power is restored.
Chemical storage also has seen limited use in renewable Grid-forming inverters are capable of creating an AC
mini-grids to date. The main focus of research on grid in autonomous renewable mini-grids. Dual-mode
chemical storage technologies has been on the use inverters combine the benefits of both and are the
of hydrogen as an energy carrier. Research is ongoing interconnection point to the main grid, but are more
in the use of water electrolysis to produce hydrogen costly.
in periods of excess generation of renewable energy.
However, even if electrolysis is a mature process it still Inverters can be single-phase or three-phase, depending
suffers from high costs, has a production efficiency on the distribution line and the loads. An important
of 70%, and only 4% of hydrogen production is done factor when connecting motors is the surge power of
through water electrolysis (Mazloomi et al., 2012). Other the inverter, or the capacity to supply higher than its
chemical storage applications include power to gas, nominal power (see Glossary of Terms) for a few seconds
biofuels, methane and some metals. Research also is or minutes (Meral and Dinçer, 2011). DC-DC converters
under way on the production of syngas (see Glossary also are covered to a lesser extent. Power-conversion
of Terms) through gasification, which can later be technologies are typically considered mature. They are
combusted to generate electricity (DTU, 2013). The widely available and highly efficient, in particular grid-
Catalysis for Sustainable Energy Initiative in Denmark following inverters and DC-DC converters. Grid-forming
has focused on using catalytic processes for energy and dual-mode inverters are in the commercial scale-
storage. up phase and are the most important for renewable
mini-grids.
Electrical storage technologies include electrical double-
layer capacitors (EDLC) and superconducting magnetic Converters have shorter lifespans than generation
energy storage (SMES). Due to their immaturity technologies, requiring replacement every 5 to 15 years,
their costs are unknown as limited pilots have been depending on their quality and robustness.
conducted.
Grid-following inverters and generally follow price drops from PV modules.
Inverter price is closely correlated to the prices of metals
The main function of grid-following (or grid-tied or such as copper, aluminium and steel. Grid-following
grid-dependent or solar) inverters is to convert the DC inverters are considered a mature technology, but cost
output of the PV arrays to AC electricity to feed into reductions still can be achieved with the use of SiC and
the grid. There are several types. They can work with a GaN semiconductors (Schwarzer et al., 2014).
transformer or without one, and in a single single-phase
or in three depending on the grid type. There are central
Technology
inverters, string inverters and module inverters. They
automatically switch off when the grid formed by an The efficiency of grid-connected inverters is also
AC source is down, to avoid islanding (see Glossary not linear. In low partial loads the efficiency is low
of Terms) or when they surpass the grid voltage or and increases logarithmically up to a partial load of
frequency (Vallvé, 2012). Those inverters also are used around 30% where it reaches its highest values. New
in AC coupled installations, equipped with a maximum improvements are being sought to increase the low
power point tracker (MPPT). Grid-following inverters partial load efficiency of inverters (e.g., Fronius MIXTM
operate under real and reactive power set-points concept). Transformerless AC-DC inverters usually
(Mueller-Stoffels et al., 2013). Table 14 summarises their achieve the highest efficiencies up to 98% at full
main indicators. load, followed by high-frequency, and low-frequency
ones with efficiencies as low as 90% (US EPA, 2013).
Micro-inverters are a small but growing segment of the Grid-connected inverters are incorporating a series of
grid-following inverter market. Under this approach, advanced features through the use of standardised
most common with solar PV, many smaller inverters communications to enhance grid stability (US EPA,
are used. This can reduce some of the impacts of PV 2013). Maximum power capacity ranges from a few kW
panel mismatch, and enables PV to interact through to 2-3 MW (IEA-ETSAP and IRENA, 2013).
the AC bus. The latter consideration can be particularly
beneficial since many electricians are more familiar
Grid-forming inverters
with designing and building AC grids. However, to
store PV energy, it must be inverted then rectified, Grid-forming inverters (a.k.a. autonomous or voltage
which can increase losses. Enphase Energy is the major source or battery inverters) create an AC grid by
manufacturer of these, producing almost 90% of the producing the alternating current and controlling the AC
micro-inverters for PV installations. voltage. These inverters are designed only for off-grid
operation, since they cannot operate in parallel with
most other AC generation sources like diesel generators.
Costs
In interconnected renewable mini-grids battery inverters
Prices of grid-connected inverters vary according to their can be used as back-up for critical loads when the grid
size, quality and features. Large inverters with power fails. When they have formed a grid, they often are used
above 100 kW have higher prices per kilovolt-amp (kVA)
than smaller inverters. Inverter prices normally decline
due to improved power semiconductors and circuits,
Table 15: Summary of state of the art
Table 14: Summary of state of the art for grid-forming inverters
for grid-following inverters
Indicators Grid-following
Indicators Grid-following KI 1: Cost (USD/kVA) 500 – 1 200
KI 1: Cost (USD/kVA) 110 – 170 KI 2: Efficiency at rated power
KI 2: Efficiency at rated power 85 – 90
93 – 98 DC to AC (%)
DC to AC (%) KI 3: Efficiency at rated power
KI 3: Efficiency at rated power 90 – 95
N/A AC to DC (%)
AC to DC (%) KI 4: Lifetime (years) 5 – 10
KI 4: Lifetime (years) 5 – 10
Source: Appert and al-Mukdad, 2013; Mueller-Stoffels et al., 2013;
Source: Fraunhofer ISE, 2014; Fraunhofer ISE, 2015a proprietary manufacturer quotes, 2015
to stabilise grid frequency and voltage, and can provide Table 16: Summary of state of the art
re-active power support (Mueller-Stoffels et al., 2013). for dual-mode inverters
Indicators Grid-following
Many inverter manufacturers include a grid-forming
KI 1: Cost (USD/kVA) 650–2 500
inverter option in their product lines. Companies selling
KI 2: Efficiency at rated power
grid-forming large-scale inverters include Optimal 93–96
DC to AC (%)
Power Solutions, Leonics, Apollo, Princeton Power
KI 3: Efficiency at rated power
Systems, Emerson, Alstom and Siemens. Smaller-scale 90
AC to DC (%)
battery inverters are offered by Outback, SMA, Studer, KI 4: Lifetime (years) 5–10
Darfon, Magnum Energy, Victron and Schneider, among
Source: Manufacturer’s specification sheets
many others. Large battery inverters with nominal
power higher than 200 kW are uncommon.
which respond by lowering the power output (Mitra et
Grid-forming inverters are critical for renewable mini- al., 2008).
grids, since they enable variable renewables, such as
wind or solar, in conjunction with storage to power loads The inverter efficiency will drop considerably from
without other generation sources on the grid. Table 15 rated efficiency at partial loads (<30%). Several factors
depicts the key indicators for grid-forming inverters. need to be considered during installation, such as
temperature conditions, air moisture content, dirt and
dust vulnerability, audible noise level of the inverter, and
Costs
the applicable regulations for power quality (or electro-
Grid-forming inverters can cost up to five times more per magnetic compatibility) (Meral and Dinçer, 2011). In
kW than grid-following ones (Proprietary manufacturer order to achieve high efficiency manufacturers mainly
quotes, 2015), although the cost premium can be as low use standard silicon-based MOSFET technologies (see
as 30% higher. Cost variations are due to the capabilities, Glossary of Terms).
size and quality of the inverter. In order to compete in
the market, some manufacturers launch product lines at
Dual-mode inverters
lower prices by offering discounted basic inverters while
keeping the advanced functions and extra features as A dual-mode inverter, also known as a grid-supporting
technology upgrades (Meinhardt et al., 2003). inverter, is the electronic component permitting the
mini-grid to operate in grid-connected or islanding
mode. When the mini-grid is interconnected it operates
Technology
as a grid-following inverter (current source inverter)
Grid-forming inverters can use standard AC grid control when the grid formed by an AC source is on. When
techniques such as droop control (see Glossary of the grid is down it operates as an autonomous inverter
Terms). For example, when batteries are fully charged, (voltage source inverter). The connection to and
the battery inverters will increase grid frequency in disconnection from the grid is done with an internal or
order to communicate to grid-following PV inverters, external transfer/synchronisation switch (UNDP, 2013).
Box 4.12 – Hybrid Power Conditioners (HPC) are enabling large-scale

renewables in remote areas
Australian company Optimal Power Solutions has been at the forefront of large-scale autonomous hybrid
power conditioners (HPC). The HPC makes it easy to integrate and optimise remote-area power sources
such as solar PV arrays, wind turbines, battery banks and diesel gensets. The use of the HPC can achieve
diesel costs savings on average 60% over the course of the mini-grid lifespan, extensive operating flexibility,
increased energy harvesting and superior power quality. The macro HPC has been implemented in projects
ranging from 1 to 2 MW in Malaysia and Indonesia.
Table 16 summarises the main indicators of dual-mode DC step-up and step-down (DC-to-DC
inverters. conversion)
DC-to-DC converters are used to step up (boost) or step

Costs
down (buck) voltage in DC. DC-to-DC converters are
Costs for dual-mode inverters are the highest of the used on their own in DC grids (e.g., SHS or recreational
three converter types. They are typically 6 to 20 times vehicles), are found in many portable electronic devices
more expensive than grid-following inverters, and twice such as laptops and mobile phones, and also are
as much as grid-forming inverters. This is due mainly used as power optimisers or MPPT in PV modules
to their wider functionalities to work in both modes and wind turbines. The most common type of DC-
(voltage source and current source), and because of to-DC converters are switched-mode converters that
lower market share. There are a limited number of can reach better efficiencies, between 70% and 95%.
manufacturers offering dual-mode inverters, but their Still, this efficiency varies in accordance to output-
use is becoming more common for mini-grids and also input current and frequency of operation (Lidow and
in unstable low-quality grids. Strydom, 2012). The use of DC-to-DC converters in
mini-grids is key for energy saving, in particular for
Manufacturers of dual-mode inverters include Schneider data and telecommunications centres (Hayashi and
Xantrex, SMA Studer, Leonics Victron Energy, Outback, Matsumoto, 2013).
HiQ and others. There also are devices that already
integrate power conversion and storage in one single
product, such as Socomec’s SUNSYS PCS2, a modular 4.5 Consume
solution that can perform demand response, peak
shaving, active and reactive power provision, and Providing energy to end-users is the ultimate goal of
load shifting, among others (SOCOMEC, 2015). Larger any renewable mini-grid. Consumption includes the
equipment, for power demands higher than 100 kW, technologies that make this process more flexible and
are increasingly available from manufacturers, such as efficient.
Princeton Power Systems’ BIGI model.
DC appliances and DC grids

Technology
The majority of appliances today are designed to operate
The switch between modes is done automatically and in AC, and most electricity delivered by utilities is AC.
lasts from 15 to 20 milliseconds. Nevertheless, the DC mini-grids can provide “unprecedented design and
reliability of bundled inverters that can transition quickly space flexibility, greater energy efficiency and improved
and smoothly between grid-following and grid-forming sustainability” (EMerge Alliance, 2015). DC mini-grids
AC grids is still a challenge since power quality is not are promising for several loads in data centres and
always reliable and protection issues are still not fully commercial buildings due to improved power quality,
resolved (Soshinskaya et al., 2014). increased energy efficiency and lower engineering costs
(Backhaus et al., 2015). DC distribution is favourable due
Dual-mode inverters also can perform demand response, to reduced conversion losses and less heat generation
peak shaving, active and reactive power provision and from conversions (Marnay et al., 2012a). It has been
load-shifting capabilities. Efficiency at rated power is demonstrated that by shifting from distribution in AC to
slightly lower in comparison to grid-following inverters, distribution in DC in grids with distributed generation
and drops at partial loads as with other inverter types. (see Glossary of Terms), at least 3% higher efficiency
Other technical features from grid-forming and grid- can be achieved (Willems et al., 2013).
following inverters apply, as dual-mode inverters
combine features from both, and innovations in both The use of DC grids also is recommended for low-tier
will be shared with dual-mode inverters. service solar PV-based grids which tend to be more
efficient and economical, but limit the appliances that
can be used (Pittet, 2012). PV is generated in DC which
must be converted to AC and then back to DC for
Box 4.13 – University mini-grids: living research on DC mini-grids
Place: Xiamen, China
The mini-grid of the new Xiang An Campus at Xiamen University is based on a DC distribution line of 380
V and consists of a 150 kWp solar PV array and lead-acid batteries. It powers a commercial-type building
on the campus, including LED lighting, office appliances and air conditioning. The mini-grid is planned to
eventually power a data centre and an electric vehicle charger; all loads use DC energy (Zhang, 2015). Various
international companies have been involved in the implementation of this mini-grid including Nextek, People
Power, Intel, LBNL and Canadian Solar (Marnay et al., 2012b).
AC grids, adding even more inefficiency (Justo et al., Energy, Dantherm) designed for autonomous solar PV
2013). The use of DC 12-volt LED light bulbs powered installations. Power electronics such as laptops and
directly by PV has provided savings of up to 30% in mobile phones are very common DC-powered devices,
electricity consumption by diminishing the operation but usually include a converter from AC electricity to the
of inverters at inefficient partial load and eliminating native DC, which adds inefficiency.
the unnecessary DC-AC-DC conversion (Graillot, 2013).
A 2015 study found that super-efficient DC appliances There are several DC mini-grid demonstration projects,
can lower total costs by as much as 50% (Phadke et including an IBM centre in Sweden, NTT Group in Japan,
al., 2015). Even though DC appliances have long been New Zealand Telecom and US Intel Corp. (Justo et al.,
available, their costs remain higher than AC ones due 2013).
mainly to the economies of scale of the latter (Nordman
and Christensen, 2015; Rajaraman et al., 2015). The distribution of DC is not yet standardised. Some
LVDC grids use USB, which allows various appliances to
DC-powered devices have been used mainly in connect to a single plug with a maximum of 100 watts of
industrial power distribution, telecommunications and power (Willems et al., 2013). Power over Ethernet (PoE)
point-to-point transmissions, with increasing interest is an IEEE standard that can be used for DC distribution
in low-voltage DC (LVDC) grids (Justo et al., 2013). as well. Other LVDC options include UPAMD and
DC appliances are common in the recreational vehicle HDBaseT. The power that LVDC technologies can handle
sector, but increasingly are being adopted for stationary is low and not interoperable with other standards, which
energy in remote areas. There are a number of common limits their applications. Data centres, on the other hand,
appliances for DC, such as LED TVs, LED lighting, usually operate with higher voltages (Backhaus et al.,
media players and refrigerators, such as SunFrost 2015) which can increase efficiency and power delivery
and SunDanzer. These are becoming more popular potential.
but are still more expensive. DC motors also have
started to flourish, such as DC water pumps (e.g., Interconnecting DC grids with AC grids requires a
Grundfos, Lorentz) and air conditioners (e.g., Hotspot converter to manage the energy flow, which requires
Box 4.14 – DC microgrids

Schneider Electric India is offering a small-scale DC mini-grid solution of 0.5 kW to 10 kW (Schneider Electric
India, 2015). Other solution providers available in the market include Pika Energy (Pika Energy, 2015), and
Specialized Solar Systems from South Africa. Their renewable autonomous mini-grid solutions for basic
services provide an alternative for electrification that balances low costs with the need for basic, productive
energy in rural areas.
different characteristics than the connection required Table 17: Key attributes for consumption technologies
for non-DC mini-grid, and might result in additional
investment costs. This is a critical consideration that Indicators Status as of 2015
should be included in electrification planning and design. Limited to LEDs;
Availability of DC
refrigerators, TVs, media
For remote mini-grids based entirely on DC distribution, appliances in regular
appliances and others for
there is uncertainty on how they will use appliances marketplaces
RV and off-grid markets
if the AC main grid is extended eventually. Some of Limited to high-end
the main challenges include equipment grounding Internet of Things in
appliances with smart grid
appliances
and interaction between power converters. Project access
integrators operating in these areas, and particularly Appliance efficiency Baseline
in the context of energy access, recognise the issue
(Schnitzer, 2015). Further research and innovations
are thus required (Backhaus et al., 2015; Justo et al., lower energy rate periods (LG, 2015). Nevertheless, the
2013). The EMerge Alliance and the REbus Alliance are use of these appliances and functions is still limited
open industry associations promoting the safe use of due to their high cost and limited applicability in areas
DC power distribution (EMerge Alliance, 2015; REbus without smart-grid technologies.
Alliance, 2015).
The importance of energy efficiency

The importance of demand-side management
There has been a large body of research and progress
Demand-side management (DSM, see Glossary of Terms) in developing more efficient appliances. For example,
for renewable mini-grids is focused on adjusting demand the average energy required for televisions dropped by
for electricity based on the generation from renewable 76% from 2008 to 2012 (Blumstein and Taylor, 2013). As
sources. DSM encourages users to adjust usage based well, according to the American Council for an Energy-
on the availability of electricity. Harper (2013) presents a Efficient Economy, the prices for most appliances,
list of strategies including the use of efficient appliances, refrigerators, washers and dishwashers have decreased
commercial load scheduling, restriction to residential by up to 45% from 1987 to 2010 (ACEEE, 2013). This
uses, price incentives and community involvement. progress has an enormous benefit for renewable mini-
With regard to technologies, current limiters, distributed grids where energy efficiency is even more critical.
intelligent controllers, GridShare, conventional meters, The key benefit for energy efficiency is to lower the
pre-paid meters and advanced metering devices with overall cost of providing services using energy, without
centralised communication are described (Ibid.). Future reducing the benefit to end-users. It enables a mini-grid
strategies and technologies are crucial for renewable to provide more value per unit of energy.
mini-grids, with a vast potential for improving the
integrated energy efficacy.
Key attributes
Smart appliances can improve the flexibility of the Table 17 summarises the main indicators for consumption
load to match renewable generation. Smart appliances technologies.
include the capability to communicate with the grid
and accordingly adjust their operation. Major appliance
manufacturers such as LG, GE, Samsung, Whirlpool 4.6 Options for policy makers
and others are already offering several smart products. and developers
Whirlpool uses Nest Learning Thermostat® in its
washing machines to make better choices depending Autonomous basic renewable mini-grids historically
on fabrics, and also to save energy with longer drying have been mainly small hydropower projects, since
cycles and auto-delay washing, to avoid peak energy small hydro mini-grids provide a low-cost solution with
prices (Whirlpool, 2015). LG has introduced the interface limited need for storage. Small hydro projects are site-
HomeChat to communicate with appliances through specific. As solar PV costs are dropping, this option
mobile phones and easily control them. Smart ThinQ also is becoming a cost-effective one and a mature
technology enables the operation of appliances during technology up to hundreds of kW. There also has been
interest in biomass gasification, but most such projects Many countries and communities seek to shift diesel
are still in a pilot phase. generation to hybrid power plants. Autonomous diesel
mini-grids with higher reliability needs are increasingly
Mini-grids focused on energy access are being cost-effective in displacing diesel generation with
deployed worldwide with public funding, notably in renewable energy generation. Large diesel-based mini-
Asia, Africa and some countries in Latin America. Most grids with loads above a few hundred kW, in general, are
autonomous mini-grids to date are demonstration or now incorporating renewables, at a low penetration rate.
infrastructure projects funded by development agencies Autonomous diesel mini-grids with higher reliability
and governments; there are still many issues to be needs at sizes above approximately 1 MW are still
addressed in order to be commercially viable without limited, with only a few examples. One is the King Island
external funding or cross subsidies. Some pioneer Renewable Energy Project can successfully derives a
companies are seeking to commercialise and provide majority of its power from wind and solar sources. The
access to energy in remote areas using AB renewable island of Tokelau gets a majority of its energy from solar
mini-grids, but they still depend on other forms of as well. There are other larger systems with local hydro
subsidies or funding support. Technology innovation resources, notably Kodiak Island and El Hierro Island,
must go hand-in-hand with innovation in business which have been able to use hydropower to obtain
models, finance and regulation (systemic innovation) higher amounts of renewables.
to scale up the deployment of mini-grids.
Table 18: State of the art of renewable mini-grids

Technologies Current status
Most AF and AB mini-grids in the market are small-scale.
Mini-grids
Most IC and ILI mini-grids can operate no longer than one day in islanded mode.
Requires renewable mini-grid specialist for all stages of design, including conceptual design.
Solar resource data is generally of sufficient of sufficient quality; however, wind and hydro
Plan and design
data require on-site measurements to validate, and data can be costly.
Load planning is based on ad hoc and site-specific approaches for estimating loads.
Monitoring technologies are starting to be able to communicate through lower-cost GSM.
Interconnection meters are still limited in the market.
CMM
Meters that are able to handle different business models, provide user feedback, and have
DSM capabilities are flourishing mainly for autonomous mini-grids.
Most mini-grids are still using LABs as the main storage technology.
Storage An increasing number of pilot projects of mini-grids are starting to incorporate other storage
technologies such as LIBs, flow batteries and flywheels.
Grid-following inverters have achieved considerable price drops in the past decade.
Dual-mode inverters are starting to become common for interconnected mini-grids, as they
Convert
are coming into the main grid market for distributed generation in unstable grids that can
operate interconnected or islanded.
Mini-grids are currently feeding mostly AC loads.
Consume The use of DC power is increasingly being explored, primarily in commercial buildings and in
AB mini-grids as most appliances today have embedded power AC/DC conversion.
Low-cost silicon-based polycrystalline solar PV modules are the main technology being used
for generation.
Small wind is being used less, due in large part to competition from solar PV and to the high
cost of resource assessment.
Generation
There are some new small hydropower turbines for low-head (see Glossary of Terms) and
low-flow applications.
Biomass gasification that is able to handle more feedstock is increasingly available, although
it is plagued with maintenance issues.
Interconnected mini-grids are being commercialised to provide high power for remote industry, which is
mainly in the United States, where they are being difficult with autonomous power provision (such as SHS
used for emergency response and to boost disaster or PV for productive uses).
resilience. Although they often encompassing
renewable sources, they are not based exclusively on Mini-grids offer a viable median option between
renewable energy. Combined heat and power (CHP) solar home systems and full-scale grid expansion.
has been successfully used in these areas for decades. Consequently, there is an important market for mini-grid
development to bolster electricity security and expand
The state of the art of renewable mini-grids today may modern energy access in many countries.
be summarised as follows:
Interconnected renewable mini-grids can enhance
Renewables-based mini-grids provide an alternative emergency response, particularly in natural disaster-
to grid extension that can in some cases be less prone areas. Interest is high in interconnected, resilient
costly, more demand-driven, and environmentally and high-penetration mini-grids, but the renewable
friendlier. Policy makers and developers should be portion today is driven by economics during typical
aware that renewable mini-grid technologies today grid-connected operation. They also can provide
can provide access to electricity in remote areas. Still, interconnected communities the possibility to decide
the technology continues to develop and improve. what resources to use to generate electricity, to be less
Renewable mini-grids have the potential to enable dependent on centralised utilities, and to improve their
users to leapfrog (see Glossary of Terms) traditional environmental stewardship. Interconnected renewable
electrification efforts such as the extension of unreliable mini-grids are primarily for customers with high needs
or carbon-intensive grids. They also have the potential for reliability.
5 TECHNOLOGY GAPS AND
OPPORTUNITIES FOR INNOVATION
Technology innovation can be split into technology plan-and-design stage can have dramatic benefits
venturing (see Glossary of Terms) and drivers (see for reducing cost and making the implementation
Glossary of Terms) that increase use and deployment of renewable mini-grids simpler. Innovations in CMM
(“commercial scale-up”, see Glossary of Terms) (IRENA, primarily make the operation of renewable mini-grids
2013). A detailed summary of the drivers for renewable easier and more reliable. Innovations in storage enable
mini-grids today can be found in Annex 1. This section more efficient use of resources and more reliable
focuses on the technology needs that need to be operation, yielding strong benefits across all four impact
addressed to create the renewable mini-grids of the areas. Innovations in conversion enable fewer losses
future. and provide a hardware platform for integrating the
components of the renewable mini-grids together,
The mini-grid market is diverse, and different types of which can ease set-up and lower costs. Innovations at
mini-grids will have innovation requirements that can the consume stage reduce the energy requirements,
drive uptake. The uptake of different types of renewable yielding environmental and cost benefits. Generation
mini-grids is based on their energy costs, social needs innovation provides low-cost, low-environmental
and environmental awareness. impact benefits, yielding a savings of costs and reducing
negative effects on the environment.
There is a need to make renewable mini-grids a more
competitive alternative by reducing the cost (e.g., Table 19 summarises the identified priority gaps and
making them cost-effective), improving the reliability the needs addressed by innovation and technological
(e.g., improving performance), increasing the ease of R&D. It includes a qualitative assessment of the
deployment (e.g., making them simpler to integrate impact of addressing the gap in terms of the cost,
and design) and making them more environmentally reliability, ease of implementation and environmental
friendly. No single innovation is required, but rather a stewardship metrics. The qualitative assessment
range of technology advances and non-technology ranges from one star (✶) for limited positive impacts
innovations is needed to enhance the uptake of the to four stars (✶✶✶✶) if a gap is addressed. The priority
renewable mini-grids, including policy, regulation and gaps were identified and expanded based on high-
business innovations. level findings from the literature review, interviews
with key experts, development of the key indicators in
Technology innovations in each of the six functionalities Section 4, the key indicator projections in Section 6,
provide benefits across all four major impact areas. and the authors’ professional experience with mini-
However, the impact is not equal. Innovations at the grid technologies.
Table 19: Priorities to address for each mini-grid functionality
Impact
PLAN AND DESIGN Cost Reliability Ease Environmental
1 Standardised planning and design ✶✶✶✶ ✶✶ ✶✶✶✶ ✶✶
CONTROL, MANAGE, MEASURE (CMM)
1 More intelligent controls ✶✶✶ ✶✶✶✶ ✶✶✶✶ ✶✶
2 Improved communications and standards ✶✶ ✶✶✶✶ ✶✶✶✶ ✶
3 Improved metering and monitoring ✶✶ ✶✶✶ ✶✶✶✶ ✶✶✶
4 Simplify connecting equipment together ✶✶ ✶✶✶✶ ✶
STORE
Use less expensive, more abundant and less resource-intensive ✶✶✶✶ ✶✶ ✶ ✶✶✶
1
materials
More robust, lower-maintenance technologies to reduce
2 ✶✶✶ ✶✶✶✶ ✶✶✶ ✶✶
life-cycle costs for storage
3 Improvements in long-term storage capability ✶✶ ✶✶ ✶✶ ✶✶✶✶
4 Improvements in high power output capability ✶✶ ✶✶✶ ✶✶ ✶✶✶
CONVERT
1 Lower capital costs of converters ✶✶✶✶ ✶ ✶✶ ✶
2 Combine diverse function into inverters ✶✶ ✶✶ ✶✶✶✶ ✶
3 Improve efficiency, particularly at partial load ✶✶ ✶✶ ✶ ✶✶✶
More converter options for diverse renewable mini-grid ✶✶ ✶✶ ✶✶✶✶ ✶
4
markets
CONSUME
1 priority
The Increased commercial
gaps availability
can be addressed of efficient
through the R&Dend-uses ✶✶✶✶ ✶ ✶✶ ✶✶✶✶
Better user tools for adapting
opportunities detailed in Section 6. consumption to energy supply ✶✶✶✶ ✶✶ ✶✶✶ ✶✶✶✶
2
(DSM)
GENERATE
1 Lower capital costs for generation ✶✶✶✶ ✶ ✶ ✶✶
2 Reduce maintenance needs ✶✶ ✶✶✶ ✶✶✶✶ ✶✶
3 Improved efficiency and increased energy capture ✶✶✶ ✶ ✶ ✶✶✶✶
6 PROSPECTS FOR TECHNOLOGY
INNOVATION
New technological developments are expected in ●● Several promising R&D initiatives that are striving
all six core functionalities. Research and development to fulfil this need are then described,
initiatives in the laboratory and in early commercialisation ●● The expected high-level benefits of investment in
development today may overcome the 18 identified these R&D initiatives are provided.
priority gaps over the next two decades. The impacts of
this R&D will cut across market, technological, social and The information related to generation functionality is
environmental factors. Where possible, active research contained in Annex 6 of the report.
from today is featured to provide an example of the
ground-breaking innovations that potentially could This analysis is supported by a thorough literature
unlock renewable mini-grids as the energy supply of review, several interviews with experts, and patent data
the future (although not all research presented in this searched and presented for each of the functionalities.
section might result in commercialised products, and the The patent data search gives an indication of the
endeavours presented are only a sample of the numerous specific topics in which active, near-commercial R&D is
R&D efforts carried out currently by different institutions). happening, as well as the top countries and institutions
Not all technological advancements must be achieved, in the number of patents filed. The results presented
but a critical mass is necessary to create a future with in the patent reviews that follow demonstrate an
ubiquitous renewable mini-grids. From this perspective, increasing interest in most mini-grid technologies and
many of these innovations require support from policy identify industries that hold intellectual property, which
makers, investors and academia, as described in Section 7. can be adapted for mini-grids. These patent reviews
have provided clarity to illustrate the prospects for
This section provides the reader with an introduction development of renewable mini-grids.
to the set of challenges, with several promising R&D
solutions, and with a summary of the benefits of robust
investment in renewable mini-grid technologies. The 6.1 Plan and design
presentation of findings mirrors that of Section 4 and
proceeds functionality-by-functionality. Within each of An optimally planned and designed mini-grid can
the six core functionalities the following analysis is done: dramatically reduce the overall cost, as well as reduce
the complexity of integration. Innovation prospects of
●● Priority gaps are described and converted into a the technologies and software required for planning and
need that innovation can address, designing mini-grid systems are presented as follows.
Planning and Design Technologies: Patent Review
Figure 6: Top 10 countries for modelling and simulation patents Top institutions patenting
filed from 2010 to 2014 plan-and-design
technologies, 2010-2014
Europe
International ● State Grid Corporation of
China
● China Electric Power Research
Institute
Patents:
● General Electric
20
● IBM
100
● Siemens AG
200
● Toshiba
500 ● North China Electric Power
University
● China Southern Power Grid
Source: Author elaboration; EPO, 2015a; EPO, 2015b
Company
● ABB Research Ltd.
Figure 7: Number of patents for plan-and-design technologies
● University of Tsinghua
for all years prior to 2010 and for 2010-2014
The plan-and-design patent
Pre 2010 2010
to
2014
review focused on tools for
Number of Patent Innovations
1200
1000 modelling and simulation.

800
600 The most trending technology

400 modelling and simulation is for
200 computer-aided design (CAD).
0
Modelling and simulation
Plan and Design
Plan and
Design
Technologies

Further patent details are provided
in Annex 4.
Priority Gap 1 – Standardised planning and a solid local partner and making the mini-grid as big as
design possible (Whittaker, 2013). Technology can help reduce
Despite the tremendous potential of mini-grids, access the barriers to projects through bundled approaches to
to financing and planning for mini-grids are more decrease transaction costs, and by using industry tools
difficult than for larger renewable projects. Part of the for evaluating the renewable mini-grids.
challenge lies with regulations and existing approaches
for evaluating the risk of mini-grids due to their new Need: Standardising and improving modelling for
and novel nature. However, technology has a role to planning, financing and design
play in reducing the perceived risk. Key approaches
that can help to unlock financing are using a proven Applying traditional energy sector evaluations to
technology, having a good buyer for the power, having renewable mini-grids can yield a perception of
increased risk. The perceived risk can come from lack power quality issues of multi components such
of familiarity with how to evaluate data uncertainty, as low-voltage ride-through (see Glossary of
data unavailability or evaluation techniques that are Terms) and unbalanced voltage compensation
too costly for application at a small scale. All of these (Eloy-García et al., 2013).
risks can be managed with design technology to reduce
upfront costs and improve access to financing. For ●● R&D 2: Increase availability of load data
example, current state of the art for wind siting is Predicting load data for a project development
at least one year of on-site measurements with an is difficult and is compounded by the fact that
anemometer, which typically can increase the cost of publicly available data on load usage can be
deploying a 100 kW wind turbine by 5-20%, depending limited, especially in rural, non-industrialised
on the number of sites that are measured. Improved communities. Accurate load estimates are critical
resource methods can greatly reduce this cost. As the for creating efficient designs, since imbalances
available information increases and as tools improve, between the energy production from variable
development costs could be cut by as much as 10-20%. renewable sources and load requires expensive
These tools also can assist in aligning local initiatives storage and additional intelligent controls. A
with national goals, resulting in more effective planning number of initiatives are addressing the gap in
and better outcomes. load data.
●● R&D 1: Enhance tools for designing and An example of innovations in load forecasting
planning was carried out by the Hawaiian Electric
These tools enable projects to have a transparent Company and its technology partners: AWS
and complete allocation of costs, which can Truepower, Siemens, Alstom, Referentia
improve future estimates and designs. Given the Systems Inc. and DNV GL. This collaboration
large number of pilots being financed with public created a customised renewable energy
funding, this information would dramatically forecasting tool, the Solar and Wind Integrated
improve technological deployment (JRC, 2013). Forecasting Tool (SWIFT), which deployed a
For example, Westeva in Colombia is developing local sensor network to gather solar and wind
a database of renewable resources for very high- resource information, as well as an improved
level planning and siting of mini-grids (Westrick, physics-based numerical weather prediction
2014). HOMER software is consistently updating that addresses Hawaii’s unique terrain and
its software to provide low-cost evaluations tropical marine environments. Now deployed,
across all mini-grid market segments (HOMER SWIFT is able to provide to developers and
Energy, 2015). However, there is a need to planners with continuous, near real-time, load
validate initial planning with actual project data and will create a seamless integration of
outcomes. Spain’s Carlos III University, together forecasting information into operational tools
with Denmark’s Aalborg University, developed (IEI, 2014).
a grid simulator to test the power quality of
mini-grids (Eloy-García et al., 2013). The grid ●● R&D 3: Lower cost of renewable energy
simulator was capable of the compensation resource assessments
algorithm (see Glossary of Terms) of distributed Although solar resource assessments today are
generation units in a mini-grid and used to test relatively more accurate than in the past, wind
Box 6.1 – Using Artificial Neural Networks to predict loads

Research at CIEMAT has been carried out for short-term load forecasting based on Artificial Neural
Networks for mini-grids (Hernandez et al., 2013). This work has demonstrated the close relationship
between forecast errors and the number of training patterns, and applicability of load forecasting and
ANN tools to mini-grids, with small errors of 3% compared to real load curves (Hernandez et al., 2013).
resource assessment is more difficult due to Electrification Africa (RE2nAF) tool (JRC, 2013).
micro-siting challenges (see Glossary of Terms). IRENA’s Global Atlas is continually adding data
More accurate wind resource assessments sources and tools (IRENA, 2015d).
which factor in the micro-siting impacts that
plague wind installations can remove these
Indicators and summary of innovation impact
costs. Research on these smaller-scale impacts
is being undertaken by NREL and the Danish Table 20 summarises the expected impact of the
Technical University. New techniques based on innovations on the 2025 and 2035 key indicators for
LiDAR technology (see Glossary of Terms) and plan and design.
improved fluid modelling over the next two
decades are expected to dramatically reduce
the uncertainty of wind resource assessments. 6.2 Control, manage and measure
Several individual countries in Latin America, (CMM)
with international support, are developing
publicly available solar resource maps to The capabilities within this functionality include the
facilitate the use of renewable energy (Solano- technologies most specific to the improvement of
Peralta, 2015). The Joint Research Centre is renewable mini-grids. These technologies sit at the
improving its solar radiation maps for Africa intersection of advanced power semiconductor devices,
and Europe and generating expanded tools and power electronics and information technologies
capabilities through its Renewable Energy Rural (Huang et al., 2013). As noted in Section 4, many of the
Table 20: Plan-and-design indicators
Indicators 2015 2025 2035

Early-stage design of
renewable mini-grids does
Requires renewable Increasing availability of
not require a specialist,
Need for specialised mini-grid specialist for all off-the-shelf components
and robust tools exist for
engineering stages of design, including and more user-friendly,
a complete design, based
conceptual design. proven design tools.
on proven off-the-shelf
components.
Resource planning is
General solar resource supported by robust tools
data are of sufficient that accurately predict
Resource data quality; however, wind Increasingly high-quality resources without on-site
(solar, wind, water) and hydro require on-site resource data are available. validation. Detailed,
measurements to validate, local resource data are
and data can be costly. affordable and readily
available.
Increasingly intelligent Smart load planning tools
Based on ad hoc and load planning; however, provide accurate, proven
Load planning site-specific approaches load planning still requires estimates on expected
for estimating loads frequent updating and load based on readily
validation. available data at a site.
CMM Technologies: Patent Review
Figure 8: Top 10 countries for all CMM technology patents filed Top institutions patenting
from 2010 to 2014 CMM technologies, 2010-
2014
Europe
International ● Toyota Motors

● Bosch GMBH
● Honda Motor Company Ltd.
● Nissan Motor
Patents: ● Toyota Motor Corporation
200
1,000
● GM Global Technology
2,000 Operations Inc.
5,000 ● General Electric
10,000
● Ford Global Technology LLC
● Hyundai Motor Company Ltd.
Source: Author elaboration; EPO, 2015a; EPO, 2015b ● Panasonic Corporation
Most of the main patent holders
are auto companies, due in large
Figure 9: Number of patents for CMM technologies for all years part to the need for intelligent
prior to 2010 and for 2010-2014 power management in cars.
Appliance manufacturers are also
Pre 2010 2010
to
2014
pushing innovation through, for
12000
10000 example, the Internet of Things

8000 to enable appliances to benefit
6000 from smart grids. Many, but not
4000 all, of these technologies could
2000
be transferred to renewable
0
Data comm Mini-grid
Intelligent storage User meter Measurements mini-grids.
CMM management control

Control, Manage and Measure Technologies
in Annex 4.
Trending topics on patents:
● Data communication technologies: power network operations, communications and information

technologies, distribution or generation.
● Mini-grid management: technologies for reduction of losses (e.g., zero current switching or soft
switching converters, zero voltage switching or non-dissipative snubbers).
● Intelligent storage control: uninterruptible or back-up power supplies integrating with renewable
energy.
● User meters: utility meters which are networked together (e.g., interconnection within a single building)
● Measurements: equipment characterised by state monitoring, e.g., fault, temperature monitoring,
insulator monitoring, and corona discharge.
components utilised within mini-grids are technologies usage. The speed of responsiveness to events such as
that have been repurposed from other industries overloads or data communication speed are indicators
(e.g., telecommunications and manufacturing) to suit to evaluate the quality of controllers. Various indicators
mini-grids (Yan et al., 2013). This trend is expected exist for evaluating the quality of service provided,
to continue, if such technologies continue to be such as those from other electrification infrastructure
strategically adopted. including the System Average Interruption Duration
Index (SAIDI) and the Customer Average Interruption
Critically, improvements in CMM technologies will enable Duration Index (CAIDI).
deployments to easily scale up and improve integration
of the diverse equipment and resources required to Need: Making controls more intelligent and affordable
power mini-grids with renewable energy. The authors
estimate that CMM costs typically account for about 10% Research can help to determine which control strategy
of a mini-grid’s total cost, although this number will vary is preferred and under what conditions. There is
significantly across individual installations. This section significant research into how to make these decisions
presents several innovations that could reduce their cost and what decisions are preferred:
and improve their capabilities. The cross-cutting value
potential of CMM is likely to exceed the benefit from ●● R&D 1: Improve short-term control for more
reduced costs for the CMM technologies themselves. stable grids
Clusters of mini-grids are expected to be
developed in the near future. Each mini-grid
Priority Gap 1 – More-intelligent controls
can have a number of energy services which
Controllers are key for functional mini-grids (Klemun, could be of mutual interest among mini-grids,
2014). There is significant research into how renewable such as storage capability, active/reactive
mini-grids should make decisions about how to manage power demand/generation and so on. Thus
loads, use storage and use dispatchable generation multi-agents could negotiate the interchange
such as diesel back-up or biomass. Decision making of energy between mini-grids or mini-grid
can be either centralised or distributed. Distributing clusters. Research trends in mini-grids show that
control decisions helps to reduce the burden on a technologies for communication systems are
centralised controller. For example, a battery controller becoming important, particularly multi-agents
might decide the optimal voltage for charging a battery, and hierarchical control (Guerrero et al., 2013).
while a central controller might make a decision about Also, there is a need for developing robust control
how quickly to charge the battery. algorithms that use an appropriate mixture of
centralised/hierarchical and distributed control
Benefits of intelligent controls include increased to handle a wide range of architectures (Guerrero
contributions from renewable energy, improved et al., 2013).
stability, high quality of service, and maintaining good Singapore’s Nanyang University and Denmark’s
efficiency levels of gensets, among others. For example, Aalborg University have proposed an interlinking
artificial intelligence and the ability to predict load droop scheme for tying mini-grids at different
demand or meteorological conditions can result in more frequencies and voltages to reinforce active and
effective load management or higher renewable energy reactive power in their operation (Nutkani et al.,
Box 6.2 – Short-term stability control

Place: King Island, Tasmania, Australia
The King Island Renewable Energy Integration Project has helped the King Island grid push the limits of 100%
renewable energy projects at increasingly large scales. Using its novel controls for stability, the King Island grid
is currently capable of operating for periods on 100% wind and solar energy in a 1 MW+ grid (Hydro Tasmania,
2015). It is one of the few electrical systems of this scale globally to achieve this technical milestone.
2012). In the private sector, Sustainable Power predictions of wind and solar outputs from
is a small business developing integrated, novel renewable energy farms. Government
solutions for high-penetration mini-grids around organisations such as the US National Center
the globe (Sustainable Power Systems, 2015). for Atmospheric Research and NREL are active,
The FREEDM System from North Carolina State along with meteorological bureaus worldwide,
University and its “energy internet” concept in researching methods for more accurate short-
researches the role of power semiconductor term estimations. These predications are run
technology, power electronics and information in centralised supercomputing facilities that
technology to enhance operations applicable to distribute their predictions to utility dispatch
clusters of mini-grids (Huang et al., 2011). centres and energy market investors.
●● R&D 2: Improve long-term intelligent
supervisory control and management Markets will build off of this innovation by using
As information technology becomes more central new tools for communication as well as data
to the smart grid, it will benefit the renewable centralisation tools to distribute centralised
mini-grid market by allowing more intelligent information all over the globe. The improved
decisions. For example, in interconnected predictions will enable controls to manage the
renewable mini-grids, Causam/Power Analytics’ use of batteries more optimally, reducing wasted
software has a robust platform that can help electricity and enabling projects to use fewer
with real-time decision making based on real- batteries.
time equipment failures and resource availability
(Power Analytics, 2015). The University of
Priority Gap 2 – Improved communications
Aalborg, in partnership with the Universidad
Distrital Francisco Jose de Caldas, Universidad
and standards
de Puerto Rico and Universitat Politècnica de There has been significant applied research and
Catalunya, is conducting fundamental research integration of control equipment into standards such
into control algorithms that balance economically as IEEE Standard 1547 “Standard for Interconnecting
optimal decision making and prioritising the use Distributed Resources with Electric Power Systems”
of renewable energy (Luna et al., 2015). The (Basso and DeBlasio, 2004) and IEC 62116 “Utility-
Power Systems Integration lab at the Alaska interconnected Photovoltaic Inverters – Test Procedure
Center for Energy and Power in Fairbanks is of Islanding Prevention Measures” (IEC, 2014). These
pioneering the optimal use of renewable energy standards reduce uncertainty for interconnected
in remote mini-grids (Mueller-Stoffels, 2015). mini-grids. In Europe, research efforts to standardise
such equipment are being driven by the Smart Energy
R&D 3: Improve wind and solar forecasting Systems group at the European Institute of Innovation
Today, hundreds of millions of dollars is at stake and Technology through enhancements to IEC standards
as renewable energy continues to play a larger 60870 “Telecontrol Equipment and Systems” and 61850
role in the main grid. Private organisations such “Power Utility Automation”. Meanwhile, information on
as 3TIER, AWS Truepower and Windlogic are technology-focused standards is being developed in
all actively exploring meteorological tools to parallel.
better create day-ahead and four-hour-ahead
Box 6.3 – Public-private alliances to enhance interoperability

Industry-accepted standards underpin much of the increasing ease of connecting together diverse hardware
and software. Groups in North America include the Smart Grid Interoperability Panel (SGIP) and the Smartgrid
Alliance. Similar organisations exist in Europe (Smart Grid Coordination Group), the Republic of Korea (Korea
Smart Grid Association), India (India Smart Grid Forum) and Japan (Japan Smart Grid Alliance). These
organisations bring together diverse stakeholders with a common goal of facilitating the intelligent use of
information in the electrical sector.
Need: Better communication devices whether DC or AC, must be used strategically
because the communication speed is limited. In
Communications platforms require cost-effective many cases, power line communication can be
architecture, real-time communications (two-way used in combination with other communication
link), security mechanisms, standards to ensure channels.
interoperability, scalability and field upgradability,
as well as strong industry support (Vigneron and Cellular wireless wide area network (WAN)
Razazian, 2012). There are two key needs for improving communications is a mature technology where
compatibility and enhancing communications: the utility can take advantage of the existing
mobile infrastructure and decrease the grid’s costs,
●● R&D 1: Improved interoperability standards without having to share the costs of operation and
There are also numerous groups that are maintenance (O&M) or upgrading of the network
developing the PAP standards. IEEE is developing (Pauzet, 2011). To avoid cyber-attacks and protect
Standard P2030.7 for the Specification of financial transactions, encryption protocols are
Microgrid Controllers (IEEE, 2015). A group necessary such as the Secure Sockets Layer (SSL)
of organisations under the Industrial Internet or Transport Layer Security (TLS).
Consortium is testing standards at their
Communication and Control Testbed for Continued investment in mobile
Microgrid Applications with a goal of producing telecommunication infrastructure will improve the
industry-accepted standards, including the next ability of renewable mini-grids to share data with
phase of piloting the standards in a live mini-grid external experts and managers. There are second-
(Industrial Internet Consortium, 2015). Another generation (2G), third-generation (3G) and
effort for standardisation and facilitating plug- fourth-generation (4G) wireless communication
and-play interoperability between distributed technologies. The CDMA 1xRTT and GSM/GSRM
energy resource components and smart grid networks are 2G solutions where the meters can
applications is the SunSpec Alliance. incorporate a SIM card (see Glossary of Terms)
As these standards improve, manufacturer “lock- and transfer data by sending SMS messages,
in” will be reduced, enabling more robust and although with questionable reliability in terms of
resilient designs. Policy support is critical for timing and failures. An evolution of GPRS is the
ensuring that these standards are adopted and EDGE (Enhanced Data Rates for GSM Evolution),
used. characterised by higher bandwidth and connection
speeds than GPRS (Pauzet, 2011). 3G networks
●● R&D 2: Better integration and standardisation include Wideband CDMA (W-CDMA), High-Speed
of communication technologies Downlink Packet Access (HSDPA) and Evolution-
For DC mini-grids, researchers have found that Data Optimized (EVDO) Revision A. For DC grids,
strategic communication using the DC bus as the IEEE-standardised Power over Ethernet (PoE)
a communication link can achieve lower-cost or Energy Efficient Ethernet (EEE) are helping to
communication. One field of research includes standardise the power usage of ethernet lines,
the use of energy storage to change the voltage which can enable communication and low-power
level of the DC bus to transmit messages. For energy over the same cable.
example, the converter can use the DC bus to
communicate the SOC of the batteries (Zubieta,
2015). Other research is done in distributed Priority Gap 3 – Improved metering and
control amongst the converters, linked by monitoring
the DC bus with a low bandwidth external
communication link or DC bus signaling control There are several technical requirements and
methods (Lin et al., 2015 and Zhengyu et al., 2015). improvements for smart metering that are key areas of
For AC appliances, there is analogous research research. Metering needs include increased reliability,
into power line communication (PLC). However, low maintenance needs, interoperability, scalability, real-
communications through the power line carrier, time communication, cost-effectiveness, low installation
costs, low power consumption, order and security to offer more flexible solutions. Circutor in
(Khalifa et al., 2010; Pauzet, 2011). There are specific collaboration with Trama TecnoAmbiental is
gaps that benefit mini-grids, mainly technological currently working on a new meter technology
advancements that use metering to improve the support with a universal approach. Its algorithm
capabilities for distributed resources and autonomous incorporates various business models and control
mini-grids. strategies and allows the operators to assign
different tariffs to users of the same mini-grid.
Need: More flexible, robust and adaptable metering Through software, the operator can activate or
technologies deactivate the available functionalities and create
tailor-made tariffs depending on the needs of the
Flexible metering technologies are necessary to mini-grid: for example, power-based tariffs and
support diverse business models based on local power control for hydro mini-grids, and energy
needs. Traditionally, user meters have focused only on control and real-time pricing schemes for solar
measuring users’ energy consumption. However, the and/or wind mini-grids. Developers of the meters
proliferation of distributed energy resources that can also are designing a low-cost option with less
feed back into the grid, as well as new business models functionality and flexibility that would decrease
such as time-of-use pricing, are driving new smart costs by 30%.
meter technology.
●● R&D 3: Improve remote monitoring capabilities
●● R&D 1: Improve communication technologies Research is looking at remote monitoring in
Research on smart meters aims to replace advanced metering infrastructure (AMI) and
communication conducted through serial ports two-way communication between the utility and
(RS232 and RS485, for example) or wirelessly the meters. The principal drive for research into
(infrared and radio frequency) with automatic innovative communication technologies is “the
meter reading (AMR) technologies (Khalifa et al., need to improve utility efficiency and customer
2010). PLC communication can utilise existing service level” (marketsandmarkets.com, 2014b).
cables to transmit data along with electricity. At Purdue University research is ongoing to
Other wireless communication technologies determine what required data and information
include radio frequencies such as satellite, can be collected through AMI in smart meters,
WiMAX, Bluetooth, WiFi or ZigBee (see Glossary tailored for both smart and mini-grids. The
of Terms). Due to their short-distance coverage, research seeks to provide data to enable accurate
the latter technologies serve mostly small home and smooth control over transitions in mini-grids
clusters (Bari et al., 2014). and their individual sources (Purdue Polytechnic,
2015).
●● R&D 2: Adapt metering technologies to be
more flexible Need: Connecting local capacity with technology
Companies such as Circutor, Inensus and Eaton experts for O&M
have been adapting their metering technologies
Box 6.4 – Cloud-based monitoring

In order to provide complete mini-grid operation services, some manufacturers are starting to integrate
communication hardware into meters that sends recorded data to monitoring platforms housed on cloud
servers. In this way, operators can remotely monitor a user’s consumption, detect theft or control cash flows.
For example, Earthspark’s monitoring solution consists of end-user smart meters that transmit consumption
data to the signal forwarders located at the utility poles and the central gateway that collects all information
and uploads it to the cloud. Similarly, Powerhive gathers all data to the Honeycomb, its cloud-based platform.
Honeycomb also can map the data and ease the detection of malfunctioning and operation of the mini-grids.
Local capacity is critical; however, the advanced Priority Gap 4 – Simplify connecting
technologies required can benefit from the involvement equipment together
of external experts. Technology can be used to bridge
this gap. On a larger scale, similar technologies have The “cost for design, engineering, and modelling to
been used by large-scale solar PV and wind developers develop the required specifications for a microgrid can
to help utilities identify problems. vary widely from USD 10 000 to USD 1 000 000 or
more for a large, complex system” (DNV KEMA, 2014).
●● R&D 1: Improve cloud-based monitoring. A From a relative cost perspective, this can be estimated
number of companies are pioneering approaches to be between 5% and 15% of the installed cost. The
to enable international support for local projects. precise percentage varies greatly depending on the
SteamaCo microgrids “use an innovative cloud- project scale: larger projects have economies of scale
based remote metering and payments system that lower the design requirements relative to project
that monitors energy use, lets people pay for costs. The contribution of these design costs also can
power using their mobile phones, and quickly be reduced if there are multiple similar, smaller projects
troubleshoots any problems”. (Ashden Awards, that can be replicated to achieve economies of scale. In
2015). addition, many developers underestimate the challenge
●● of expanding existing systems (Zimmermann, 2015),
R&D 2: Create monitoring hubs. At Beihang and research is ongoing to reduce such challenges.
University in China, researchers have developed
a new monitoring system that is based on Need: Ease integration of technologies and plug-and-
485 communication interfaces and provides play (PAP)
real-time running status of all equipment
(Zhao and Liu, 2013). In another example, the There is significant research on simplifying technologies
monitoring company Draker provides solar PV and making them more flexible to changing needs.
monitoring solutions through the use of energy PAP in interconnected mini-grids is expected to ease
and environmental sensors, data acquisition the incorporation of new devices and the switching
hardware, data communications and networking to islanding mode to reduce outages (Soshinskaya et
technologies. Draker combines these elements to al., 2014). As the shares from renewable sources and
create a range of solar PV monitoring solutions storage increase, the need for modularity and easy of
that can be optimised for commercial and utility- connections also will increase. The active research that
scale projects of different sizes and needs of data will drive innovation for easier integration includes:
management. Finally, Smart Resources Labs is
an innovative monitoring company which has ●● R&D 1: Develop more modular and flexible
a test facility that looks into different mini-grid hardware and software solutions to fulfil local
technologies to find solutions for renewable mini- needs
grid communities. The smaller scale of renewable mini-grids relative
to traditional large, centralised generation
facilities (such as nuclear, coal, large-scale hydro
or natural gas) increases the importance of
Box 6.5 – Flexible controls

The Consortium for Electric Reliability Technology Solutions (CERTS) has developed PAP schemes to
overcome the need for specialised communication. CERTS uses devices that balance power locally, with
strategic operational decisions taken by the supervisory central controller. This control structure reduces the
need to redevelop the controls when new devices are added, and improves reliability by distributing control
across multiple devices. CERTS controls have been used in American Electric Power’s test bed in Ohio and
deployed in the mini-grid at Alameda County’s Santa Rita Jail (Klemun, 2014).
solutions that can be rapidly deployed and easily mini-grid consisting of 170 cottages. MAGIC is a
scaled up. This includes the development of Java-based software that implements intelligent
more “off-the-shelf” products to spread product agents that are installed in various households
costs and achieve economies of scale. Modular and able to control and monitor appliances.
designs, if appropriate, also can be expanded In case of an overload, the individual MAGIC
easily to allow the system to evolve with the controllers co-ordinate with the Microgrid Central
energy needs of the served populations. Controllers to curtail individual loads and resolve
the problem (Dimeas et al., 2014).
The Intelligent Power & Energy Research
Corporation, through its GridMaster mini-grid ●● R&D 2: Demonstrate compliance with and
control system, is actively researching how benefits for utility interconnections in
distributed computers can interact together to interconnected renewable mini-grids
control mini-grids. The company’s palm-size In many ways, the needs for IC and ILI are
computers constantly talk and respond to each intertwined with policy and regulations, as
other and use distributed decision making to well as smart grid developments in the utilities.
determine the best way to operate the mini-grid Prospective AB and AF installations also should
as a whole (Wood, 2015a). Modular architecture consider utility interconnection for future-
mini-grids have been proposed to ensure proofing and grid extensions. Technological
reliability, expansibility and controlled cost in innovation to better measure the operations of
power industries through the use of PAP, multi- the main grid using intelligent sensors – tools
level users, unified dispatching and hierarchical for utilities to make more robust control and
management within a limited cost increase (Lin dispatch decisions – will help utilities use the
et al., 2014). potential of IC and ILI. The most critical barriers
for utility interconnections are on the regulatory
There is significant research into intelligent and policy side, since interconnected renewable
software algorithms that can handle new mini-grids must interface with an existing utility
equipment automatically. Academic leaders in and the main grid infrastructure. Dependency on
developing these algorithms include researchers utility regulations drives many current research
at the Automatic Control Laboratory at ETH endeavours.
Zurich (Dörfler, 2014), Aalborg University within
its Intelligent MicroGrid Lab and the University There is significant research demonstrating
of California at Santa Barbara. At Aalborg the benefits and capabilities for utilities that
University’s Intelligent MicroGrid Lab, researchers are traditionally resistant to change. Many
have been developing a central controller and research groups in the United States have
control implementation for experimentation developed test beds to ensure that the points
purposes (Meng et al., 2015). of common coupling between the renewable
mini-grid and utility interconnections are safe.
Furthermore, the National Technical University of The Grid Interconnection System Evaluator
Athens has developed the Multi-Agent Intelligent at NREL (Lundstrom et al., 2013), the CERTS
Control (MAGIC) and implemented it in a pilot Microgrid platform (Lasseter, 2007), the Galvin
Box 6.6 – DERLab test bed

In Europe, DERLab is a consortium of leading laboratories and research institutes for evaluating distributed
energy and mini-grid technologies. The mini-grid testing laboratories in DERLab’s Smart Grid International
Research Facility Network include Fraunhofer Institute for Wind Energy and Energy System Technology, ICCS
at the National Technical University of Athens, Greece’s Centre for Renewable Energy Sources and Saving, and
the InstEE at the University of Strathclyde in Glasgow (DERlab, 2015).
Center’s smart mini-grid hub at the Illinois Schneider Electric’s mini-grid controller
Institute of Technology (IIT, 2015) and the dispatches distributed energy technologies by
Microgrid Communication and Control Testbed combining information about weather forecasts,
under development in California (Industrial energy consumption patterns and pricing signals
Internet Consortium, 2015) all seek to improve with the objective to minimise costs. Schneider
the connections between larger utilities and Electric’s products, together with S&C’s
interconnected mini-grids. PureWave Community Energy Storage System,
In China, the Intelligent DC Living Microgrid Lab are demonstrated in a pilot interconnected Oncor
collaboration between Aalborg University and mini-grid in Texas. This pilot mini-grid will serve as
North China Electric Power University includes a demonstration project for utilities to investigate
testing for DC mini-grids (IDMLL, 2015). Xiamen the technical and economic advantages of mini-
University, in collaboration with a range of Chinese grids and boost their deployment (Wood, 2015b).
and US-based companies and LBNL, is actively One ambitious effort that seeks to dramatically
researching the benefits of the first DC-based transform the sector is the use of big data in
mini-grid at a commercial facility (PPC, 2012). electrical networks. Over the past decade,
These research efforts are working to establish electricity information has moved away from
interconnected mini-grids as technologically TDMA (“leased line”) data exchange mediums
proven and safe alternatives to traditional and towards technologies more like the Internet
grid development. In addition to research sector. (Meagher, 2015). The transition from a
organisations and companies, many utilities are niche information channel towards information
pursuing research into how to “harden” the grid technology (IT) practices is allowing information
to enhance a utility’s ability to provide reliable companies, such as Amazon and Google, to
power. Under the leadership of PJM and CAISO, compete in developing new tools for managing
utilities are expanding the market recognition and distributing data to make smarter energy
of services beyond energy and demand sales. choices.
Meanwhile, smaller firms, such as Colorado- Many utility grids today have limited control
based Spirae, have been actively building, testing capabilities available at the low-voltage
and deploying interconnected mini-grids that distribution level where mini-grids could
can seamlessly connect with and support the interconnect. This has created problems in grids
main grid. in Hawaii, where the 51 000 grid-connected,
individual solar plant owners are exceeding the
Table 21: CMM indicators

Specialised and expensive Increasingly modular, Low-cost modular
Cost of controls
controls lower-cost controls controls
Non-economic, Economic and predictive
Control intelligence Economic-based controls
non-predictive controls
Plug-and-play capability Moderate Increasingly modular Seamless
Utility acceptance of
High interest, but limited Increasing number of Standard interconnection
renewable mini-grids in
to pilot projects commercial projects terms
grid
Communication and Numerous competing
Increasingly standardised Common, open-source
standardisation standards
Forecasting of renewable One to two hours with Several hours with high Day-ahead with high
resources high accuracy accuracy accuracy
Storage Technologies: Patent Review
Figure 10: Top 10 countries for all storage technology patents Top institutions patenting
filed from 2010 to 2014 storage technologies,
2010-2014
Europe
International ● Toyota Motor Company Ltd.

● Toyota Motor Corporation
● LG Chemical Ltd.
Patents:
2,000 ● Samsung SDI Company Ltd.
5,000
10,000
● Panasonic Corporation
● Nissan Motor
20,000
● Bosch GMBH
50,000 ● GM Global Technology
Operations Inc.
Source: Author elaboration; EPO, 2015a; EPO, 2015b ● Sanyo Electric Company
Most of the major patent holders
Figure 11: Number of patents for storage technologies for all
part to the push for storage
years prior to 2010 and for 2010-2014
in electric cars. Small goods
manufacturers are also pushing
SUM of
Pre-2010
SUM
of 2010 - 2014
100000 innovation, since portable storage

90000
80000
70000
is critical for portability. Many,
60000
50000 but not all, of these technologies
40000
30000
20000 could be transferred to renewable
10000
0 mini-grids.
Electrochemical Chemical Electrical Thermal Mechanical
Storage
Storage Technologies Further patent details are provided
in Annex 4.
● Electrochemical: lithium-ion batteries and lead-acid batteries in the past five years. Lithium technologies
and flow batteries are the most cited and published. Most patents for sodium-sulphur and LABs are old
(Mueller et al., 2015).
● Chemical: proton exchange membrane cuel Cells and hydrogen technologies (liquefied, solidified or
compressed)
● Electrical: ultracapacitors, supercapacitors and double-layer capacitors
● Thermal: research is focused primarily on sensible and latent heat storage
● Mechanical: research in pressurised fluid storage, internal combustion engines and fluidic energy
storage (e.g., pressure accumulators).
capability of the traditional grid (Trabish, 2015). Lead, since it is the most widely used battery type,
However, as the utilities are expected to adopt has recycling available in many areas, although remote
the necessary smart grid technologies over the areas still lack recycling facilities. Regardless, the ability
next two decades, large utilities will increasingly to recycle storage technology can help with reducing
look to renewable mini-grids to manage the high resource intensity.
level of renewables. Vendors including Siemens
AG, GE, PSI, BTC, ABB and KISTERS are all active Need: Use of less material and alternate chemistries
in applied research to increase the capability of to lower lithium-ion battery (LIB) costs
the grid to handle variable renewables (Appelrath
et al., 2012). Materials for electrodes can represent up to 44% of
LIB costs, and cathodes typically cost twice as much
as anodes (Xu et al., 2013). This is due to the use of
Indicators and summary of innovation impact
costly materials, such as cobalt and nickel, for cathodes.
Table 21 summarises the expected impact of the Manufacturing costs can represent up to 20% of LIBs
innovations on the key indicators for CMM for 2025 and (Wood et al., 2015) due to the time required. Innovations
2035. are expected to bring LIB costs down to USD 200-500/
usable kWh by 2025 and below USD 200/usable kWh by
2030-2035 (Akhil et al., 2013; Fuchs et al., 2012; IRENA,
6.3 Store 2015c; Jaffe, 2014; Nykvist and Nilsson, 2015; RMI et al.,
2014). LIB improvements are expected to yield higher
Storage is one of the key functionalities for renewable rate and charging capacity, lower costs, and a less toxic
mini-grids that require significant technological battery. New materials for electrodes will be used in the
innovations. The main aspects that storage technologies next decade. More structural changes for developing
need to address are robustness, low cost and reliability. new lithium chemistries still require further research.
The rapid growth of lithium-ion batteries is expected Lithium-sulphur, lithium-air batteries and eventually the
to reduce reliance on lead-acid batteries for stationary use of alternative materials to lithium are expected to
energy storage over the next two decades. Also, new happen in the next two decades.
technologies and chemistries will play an increasing
role, via complementing LABs (e.g., a renewable mini- Some major innovations that are expected to lower
grid with batteries and flywheels), the next evolution costs for LIBs are:
of LABs (e.g., LABs with supercapacitors) and direct
replacement of LABs (e.g., with LIBs). ●● R&D 1: Lower the cost of cathodes
Today, the two major types of cathodes used in
Priority Gap 1 – Use less expensive, more LIBs are intercalation and conversion cathodes.
abundant and less resource-intensive In general, intercalation cathodes are more
materials to lower capital costs stable and more common commercially, but
the conversion types have the potential for
Storage in most mini-grids today is expensive and is lower long-term costs. Common intercalation
based on heavy metals. The use of new and alternative
technologies to reduce the material needs and costs
is expected to increase over the next two decades.
Box 6.7– All-solid-state organic battery

At the Key Laboratory of Advanced Energy Materials Chemistry in China, researchers prepared an organic
pillar quinone cathode using a poly(methacrylate)/poly(ethylene glycol)-based gel polymer electrolyte,
revealing a promising future for an all-solid-state lithium-ion battery (Zhu et al., 2014). The all-solid-state
organic battery benefits from using abundant and lower cost materials that can provide twice the energy
density compared to intercalation compounds.
cathodes involve inserting a metal into a lithium A spinoff from the Massachusetts Institute of
oxide substrate. Commercial intercalation LIB Technology (MIT), 24M with support from the
examples today include LiFePO4, LiCoO2 and US DOE and venture capitalists, has claimed to
LiNi0.33Mn0.33Co0.33O2, among others. be able to reduce LIB manufacturing costs by
Promising R&D in intercalation cathodes is half through improved manufacturing (LeVine,
targeted mainly at transition metal oxides such 2015). 24M is aiming to manufacture LIBs by
as layered compounds, the use of different eliminating the drying process completely,
stoichiometric compositions, polyanion injecting the electrolyte from the start and using
compounds based on manganese, tsavorites thicker electrodes, creating a semi-solid battery
like iron, and single metal fluorides like chlorine (Duduta et al., 2011; Wei et al., 2015).
and sulphur, which can cost a fraction of cobalt
(Nitta et al., 2015). NREL and the University of ●● R&D 3: Explore use of new electrode materials
Toledo are working along these lines and in 2012 Lithium air electrodes are particularly promising
achieved improved conductivity through the use for electric vehicles due to their high energy
of silicon co-doping (NREL, 2012). In Japan the density potential (Xu et al., 2014). Nevertheless,
National Institute of Advanced Industrial Science lithium air batteries are expected to have lower
and Technology together with NEC Corporation manufacturing costs due to their need for fewer
have been working on the development of an components. The US Pacific Northwest National
iron-substituted manganese oxide cathode Laboratory has been working on developing a
which is expected to be commercialised by 2020 new lithium-air battery concept that uses oxygen
(Sekisui Chemical Co. Ltd., 2013). from the environment as the working cathode
(PNNL, 2012). The battery energy density can
New research at the US Brookhaven National reach up to 11 000 Wh/kg (close to gasoline).
Laboratory has found that using ternary solid Given the potential low costs, USD 70-200/kWh
solutions (e.g., where copper partly substitutes (Gallagher et al., 2014), lithium-air batteries are
iron in the iron FeF2) allows full oxidation of very promising.
copper, improves electrochemical performance
and has low hysteresis; its intrinsic high voltage At Argonne National Laboratory research is
and capacity shows promising potential to ongoing into the magnetic properties of lithium
use in next-generation batteries (Wang et al., peroxide, the development of an air-breathing
2015). Other companies such as LG Chem, NEC cathode, and electrolyte decomposition, to
Corporation in Japan and Sonnenbatterie are also improve the performance of lithium-air batteries
key research players in new innovations on LIBs. (Lu and Amine, 2013). At the University of
Waterloo researchers are looking to replace
●● R&D 2: Lower the cost of manufacturing expensive platinum with alternative materials
Current efforts to reduce manufacturing costs for lithium-air batteries, such as a Perovskite
include the elimination of N-methylpyrrolidone oxide phase nanoparticle-based nitrogen-doped
and reduction of the electrolyte wetting and CNT composite which presented superior
solid electrolyte interface (SEI) layer formation, electrochemical durability (Park et al., 2015).
according to research being carried out at the Lithium-air batteries are still limited to the
US DOE’s Oak Ridge National Laboratory (Daniel, laboratory level, and much work is required to
2015; Wood et al., 2015). The use of an aqueous ensure stability and to overcome low round-
electrode can bring processing times down by trip efficiency, low discharge capacity and low
60-75%, reducing costs and energy consumption practical energy density. Their performance can
by more than 20% (Wood et al., 2015). Reduced be enhanced with further research on cathode
wetting and SEI-layer formation also can reduce materials, optimisation of the composition/
processing time, which currently takes 1.5-3 decomposition of Li2O2, and the weight ratio of
weeks, by using an additive for the electrolyte the electrolyte as well as further understanding
and investigating charging steps at higher rates, of the mechanical properties of the lithium-air
among other techniques (Wood et al., 2015). battery (Ma et al., 2015).
Need: Continued exploration of chemistries beyond is, in large part, due to their longer cycle life
lithium-ion and the ability to leverage the manufacturing
technologies developed for traditional lead acid.
Despite the interest and promise of LIBs, concerns
remain regarding lithium availability, safety, recyclability, ●● R&D 2: Explore new materials in flow batteries
toxicity, performance and control. The European Chemicals in flow batteries are expensive and
Association for the Storage of Energy (EASE) and difficult to maintain. Harvard University has
the European Energy Research Alliance (EERA) received funding to continue its research on
suggested intensive materials research for achieving organic flow batteries which use organic
substantial breakthrough on flow batteries, advanced molecules found in plants, carbon-based
lead-acid, aluminium-based, nickel-based, zinc-based, quinones, which are low cost, naturally abundant,
magnesium-based and sodium-based technologies and can be synthesised, are non-toxic, and are able
other new electrochemical couples (EASE/EERA, 2013). to cycle efficiently. The researchers have been
able to prove that this metal-free aqueous flow
Flow battery costs are expected to drop to USD 100- battery can retain over 99% storage retention
200/usable kWh by 2035 (Fuchs et al., 2012). Research capacity per cycle, and the materials used can
into new redox pair chemistries that use lower-cost cost one-third of the cost of common chemicals
materials will benefit flow battery technologies. Sodium- in vanadium flow batteries (Huskinson et al.,
based technology costs are expected to decrease to 2014a, 2014b, 2014c).
USD 120-250/usable kWh (Fuchs et al., 2012) and have a
great potential to deliver more environmentally friendly The University of Malay in Malaysia has been
batteries, but their high temperature dependence still leading research on the use of deep eutectic
poses a challenge. solvents (DESs) for electrolytes, e.g., ferrocene,
which is low cost, manufactured from raw
●● R&D 1: Reduce costs for advanced lead-acid materials and biodegradable, as an alternative
batteries to ionic liquids (molten salts) which cost 20 to
Traditional LABs are expected to achieve slight 50 times more (Chakrabarti et al., 2014). MIT
cost decreases (IRENA, 2015c), in large part researchers have taken a different path and are
due to their status as the main player in the instead focusing on getting rid of the membrane,
battery market. LAB projected cost reductions in order to cut down costs and material use
of up to 20% due to learning curves as LAB and avoiding reliability issues (Braff, 2014). The
manufacturing continues to increase these researchers have found that by maintaining
cost reductions will continue over the next two liquids at low enough speeds the electrolytes do
decades (Matteson and Williams, 2015). Due to not mix. The flow battery uses hydrogen bromine
the long experience with LAB, cost reductions due to its high power density and is able to
for the short and medium term, down to USD maintain a round-trip efficiency above 90% (Braff
50-150/usable kWh, are achievable in the next et al., 2013). At the Korea Institute of Energy
decade (EASE/EERA, 2013). More extensive cost Research work is ongoing towards a metal-free
reductions are expected for new ALABs as their all-organic flow battery which achieved a 60.9%
production scales up. The lower cost expectation
Box 6.8 – Aqueous water-based electrolyte flow battery

The ambipolar zinc-polyiodide redox flow battery being researched at the US Pacific Northwest National
Laboratory has received a lot of attention due to the outstanding higher energy density achieved (170 W per
litre of electrolyte). This flow battery contains no toxic materials, has fire safety and has a significant potential
for lower cost membrane (Li et al., 2015). The use of an aqueous water-based electrolyte reduces the need
for expensive chemicals required to withstand the corrosive nature inherent in other flow battery chemistries.
Finally, the battery can operate at a wider temperature range, from -20 °C to 50 °C (Li et al., 2015).
efficiency by using polythiophene microparticles batteries, but fundamental research into new
(Oh et al., 2014). chemistries can lead to similar innovations for the
next generation of storage.
●● R&D 3: Continue exploring other novel battery
chemistries Alkaline nickel-based batteries (nickel-cadmium,
There is ongoing fundamental research into nickel-metal hydride, nickel-hydrogen and
novel materials that could revolutionise the nickel-zinc) have been used in off-grid rural
electrochemical storage industry. These electrification applications due to their robustness
include metal-air technologies, liquid batteries, and resistance in extreme weather conditions
magnesium-based, fluoride-ion, chloride-ion, (operating temperatures of between -40 ºC and
other conversion-based technologies, and 60 ºC). There are a variety of types specialised
battery cells with higher voltages (EASE/EERA, for floating, cycling or engine starting (EUROBAT,
2013). For example, metal-air chemistries have the 2013a, 2013b). Installation costs range between
potential to achieve exceptional improvements USD 280 and 1 130 USD/kWh, and their efficiency
in technical performance (up to three times exceeds 90%.
those of lithium-ion) and high cost reduction
associated with cheaper and more abundant
Priority Gap 2 – More robust, lower
raw materials (EASE/EERA, 2013). This is due to
fewer pieces and the use of abundant oxygen as
maintenance technologies to reduce life-cycle
the electrolyser. These are still in early research
costs for storage
stages, with commercial potential projected in Critical maintenance requirements and risk of
about 20 years. catastrophic failure to capital-intensive storage devices
are a primary challenge for wider use of storage. There
Research today is seeking to overcome is significant research today to reduce the requirements
performance degradation during long-term and reduce the risk of failure, while ensuring that
operation, and extending the operational the technology can be reused or recycled at the end
lifetime. Metals being researched for metal-air of its life.
batteries include aluminium, lithium, nickel,
sodium, magnesium and zinc. For example, Need: Research into more resilient, safer designs for
C-Tech Innovation and a series of partners in the lithium-ion batteries
UK-based PowerAir Project are researching the
promise of combined large zinc-air flow batteries LIBs currently offer low thermal stability – that is, the
that operate at high current densities (POWAIR, recoverable power and capacity suffer significantly at
2015). Zinc-air batteries offer the advantage of temperatures above 50 °C or below -10 °C (Bandhauer
using low-cost, benign and abundant materials et al., 2011). Research is currently looking at alternative
(C-Tech Innovation Ltd, 2014). Generally, metal- electrolytes and materials to cope with thermal runway
air technology costs are expected to be high in LIBs (Underwriters Laboratories, 2014). It is expected
in 2030 at USD 330-550/usable kWh, but that by 2030 LIBs will have an operating temperature
have the potential to drop to USD 100/usable of -20 °C to 70 °C (EASE/EERA, 2013) and even will be
kWh by 2050 (EASE/EERA, 2013). New, novel capable of operating at temperatures as high as 200 °C
storage technologies are not limited to metal-air (Wong et al., 2014).
Box 6.9 – Solid electrolyte LIBs

At the Centre for Self-Assembly and Complexity (CSAC) at Pohang University in the Republic of Korea
researchers have developed the first example of a highly thermally stable organic molecular porous material-
based lithium-ion conducting material. CSAC developed a LIB that used a solid electrolyte based on an
organic porous cucurbituril that provides great conductivity and resists temperatures up to 99.85 °C without
signals of thermal runaway (Park et al., 2015).
●● R&D 1: Research into thermal management The Advanced Lead Acid Battery Consortium
strategies to control LIB temperature is supporting research on carbon-enhanced
Research is ongoing into thermal management design electrodes, composition of carbon-types,
devices capable of ensuring that temperature degradation of carbon and possible new failure
is maintained uniformly in all of the battery modes, among others, to extend the cycling life
cells in a pack (temperature cell to cell balance), and enhance performance of LABs. A main focus
counteract rapid temperature rise, and hence of research is on operating in the partial state of
avoid thermal runaway (Bandhauer et al., 2011). charge required for solar PV through optimised
At Lancaster University in the UK, scientists are charging algorithms and battery design (ALABC,
researching the use of paraffin/porous graphite 2015; McKeon et al., 2014). Results from their PV
for a phase-change material (PCM) cooling project demonstrated the possibility of achieving
strategy, which has proven to improve battery 17 years of cycle life while retaining 90% of
safety (Greco et al., 2015). AllCell Technologies, the initial capacity (ALABC, 2015). Institutions
an active LIB manufacturer, has patented the use such as the Centre for Applied Electrochemistry
of PCMs to prevent thermal runaway propagation at Fraunhofer ISC and the International Lead
and is already offering solutions commercially. and Zinc Research Organisation, among many
industries, are key and active players supporting
Innovations are expected to occur particularly with R&D activities that are becoming a reality in the
control equipment to manage and monitor their short term or are already being commercialised.
operation. Improved controls for managing the
SOC of the batteries will enable more complete
Priority Gap 3 – Improvements in long-term
use of the available storage capacity. They also
can increase safety by limiting the risk of over
storage capability
discharging the batteries which can lead to thermal Another high priority for improvement is the ability to
runaway and damage the batteries (IEC, 2011). store variable renewable energy when the resource is
available.
●● R&D 2: Research alternative electrolytes that
withstand high temperatures Need: Long-term storage (months/years) to handle
Electrolytes are commonly either liquid, polymer seasonal resource availability (e.g., wind doldrums,
or solid-state. Most have low boiling points and ebb of rivers)
are flammable (Daniel, 2008; Wood et al., 2015).
The DeSimone Research group has been working Long-term storage enables variable renewable
on alternative non-flammable electrolytes made technologies (solar, wind, biomass and hydro) to be
up of perfluoropolyethers which can withstand used year-round, despite electrical production that can
thermal stability up to 200 °C while retaining vary seasonally.
conductivity and transference properties (Wong
et al., 2014). Other research is being developed ●● R&D 1: Research seasonal thermal energy
by Leyden Energy, through the use of lithium storage
imide-based electrolytes to minimise the thermal Research into seasonal storage technology
expansion of the battery (Frost and Sullivan, 2014; is in its initial stages. To date most work has
Sapru, 2014). been done through the use of sensible heat in
water tanks. Research is ongoing on the use of
Need: Innovative, advanced designs for LABs phase-change materials such as zeolites, salt
hydrates and composite materials for storing
Innovations in integration are expected to achieve solar energy seasonally, but they still need to
improved operational performance while lowering the be tested in the laboratory (van Helden and
cost. Rommel, 2015). Another focus of research
has been on thermochemical materials with
●● R&D 1: Carbon enhancement potentially high energy density (SAIC Canada
and Wim van Helden Renewable Heat B.V., 2013).
Box 6.10 – Academic research on renewable liquid “solar fuels”
The Solar Fuels Institute is a university-based global consortium seeking to make solar fuels a key part of
the energy sector (SOFI, 2016). In contrast to biofuels like biodiesel and ethanol, solar fuels use air with heat
or electricity to make fuel. This next generation of renewable liquid fuels avoids competition with farm and
croplands.
Thermochemical materials store heat through mini-grid on the Island of Corsica by AREVA,
the separation of two different substances. Honda’s solar-hydrogen recharging station in
There is no known testing in laboratories, which Japan, and a wind-hydrogen community grid in
was expected to start in 2015-2016 followed by Prenzlau, Germany, among many others (Fuel
field testing (SAIC Canada and Wim van Helden Cell Today, 2013).
Renewable Heat B.V., 2013). R&D activities are still
in their infancy; hence thermochemical materials ●● R&D 3: Continue to research energy storage
face many challenges, and innovation is needed through non-fossil liquid fuels
before they become a viable option. Affordable and renewable liquid fuels have
tremendous value to mini-grids, because they can
●● R&D 2: Continue to develop storage in non- easily be used in the global fleet of reciprocating
fossil fuels machines that dominate remote and back-up
Research is required into fuels that are easily energy markets. They are also stable for longer
created with low losses from electrical energy, periods than many other storage technologies.
allowing variable generation sources to Key hurdles for the research include reducing
convert into easily storable fuel when there the cost of the catalysts by finding alternatives
is no immediate use for the electricity. By to expensive gold, increasing the efficiency of
transforming electrical energy into chemical the process and lowering the high temperatures
energy carriers with electrolysis is supposed to required (Service, 2015; SOFI, 2016).
have a huge potential over the next 20 years.
However, research is necessary to decrease costs,
Priority Gap 4 – Improvements in high-power
increase efficiencies and scale it up for large
applications (EASE/EERA, 2013). This can be
output capability
achieved through R&D on cost and quality of Power demands in electrical grids can be very high
material used for membranes and electrodes for very short periods, both for meeting high power
and higher pressure in the processes, among electrical demands and for grid safety/protection.
others. Hydrogen is the most researched so far Renewable energy needs alternative technologies to
as an energy carrier, but it has received reduced provide these short-term high-power requirements.
attention in the past decade due to its limited
round-trip efficiency potential (Bossel, 2006). Need: Research storage that has higher power outputs
Germany has invested extensively in gaseous and inputs for longer time periods
storage, often called Power-to-Gas.
Solid oxide electrolyser cells (SOEC, see Glossary Technologies that can provide high power at low cost
of Terms) are still under research but are relatively reduces the need for fossil fuel generators. Innovations
untested, and operate at very high temperatures. to strengthen and enhance renewable mini-grids
SOEC can achieve high efficiencies but suffer from include:
high costs and limited availability of renewable
high-grade heat and electricity in the same ●● R&D 1: Explore the use of graphene electrodes
location (Ibid.). There are a significant number in super capacitors
of pilot project demonstrations such as wind- One approach for improving the robustness
hydrogen in Utsira, Norway, a solar PV-hydrogen of electrochemical technologies is through
the inclusion of graphene in supercapacitors’ ●● R&D 2: Continue to develop flywheels
electrodes. Supercapacitors with graphene Research into technological advances in
result in high power capability that is 10 to flywheels include new flywheel disc materials,
100 times more in than most batteries, as well enhanced electrical components to increase
as in high operating voltage range. They can responsiveness, new bearings to reduce friction
deliver sudden surges in power in a very small and increase lifetimes, more robust power
time, and can withstand tens of thousands of converters and novel control strategies (EASE/
charge and discharge cycles without diminishing EERA, 2013). Although steel is the most common
performance. rotor material today, in the future carbon
nanotubes (CNT) could be used to increase
However, most supercapacitors today use their energy density by an order of magnitude
electrodes from carbon, which do not achieve (Viswanathan et al., 2013). New, advanced
the same level of performance (Ho, 2015). The materials are required to achieve higher energy
Institute of Science and Technology in the density (NEXIGHT GROUP, 2010; Viswanathan
Republic of Korea is developing a supercapacitor et al., 2013).
that uses a graphene powder electrode. Their
vacuum-annealed graphene (see Glossary of Future innovations with a horizon to 2030
Terms) approach improves the electrical capacity will be aimed at increasing storage efficiency,
and conductivity beyond traditional carbon- reducing generation costs, and improving
based supercapacitors. Vacuum-annealed safety and reliability (DTU, 2013). Technological
graphene cells provide a higher energy density developments will tend towards increasing the
(131 Wh/kg) and a power density of 19.03 kW/kg, storage capacity of flywheels by increasing the
which is the highest ever reported (Yang et al., rotation speed of the rotor.
2015). More importantly the supercapacitor was
able to withstand tens of thousands of charge/ Flywheel future targets for 2030 include
discharge cycles at high current. reduction of friction to reduce energy losses,
Figure 12: Storage technology cost ranges in 2015, 2025 and 2035 depicted in USD/kW vs. USD/kWh

Installed cost in deliverable power (USD/kW)
4500
4000 LAB2015
LAB2025
3500 LAB2035
Flywheels LIB2015
3000 2015
LIB2025
2500 LIB2035
Flow2015
2000
Flow Flow2025
1500 2015 2025 Flow2035
Fly2015
1000
2025
Lead-acid Li-ion 2035 Fly2025
500 2015 Fly2035
2035 2025
0
0 500 1000 1500 2000 2500 3000 3500 4000 4500
Installed cost in usable energy storage (USD/kWh)
Table 22: Lead-acid storage technology indicators
2025
2035
Indicators 2015 (EASE/EERA, 2013;
(linear extrapolation
Fuchs et al., 2012;
estimate)
IRENA, 2015c, 2015e)
150–500 115–420 85–350
(USD/usable kWh)
KI 1b: Installed cost (USD/kW) 300–800 250–700 200–550
KI 1c: Installed cost (USD/kWhlifetime) 0.15–0.35 0.12–0.20 0.10–0.15
KI 2: Round-trip efficiency > 75%–85% 78%–90% > 90%
KI 3: Life cycle (cycles) 500–2 000 1 200–4 000 1 800–6 000
KI 4: Self-discharge rate (%/day) 0.1%–0.4% per day 0.07%–0.27% per day 0.04%–0.15% per day
Table 23: Advanced lead-acid storage technology indicators
2025
2035
Indicators 2015 (IRENA, 2015c,
(linear extrapolation
2015e; Sugumaran
estimate)
et al., 2015)
600–1 500 (estimate) 500–1 250 400–1 000
(USD/usable kWh)
KI 1b: Installed cost (USD/kW) No data No data No data
KI 2: Round-trip efficiency 86%–95% > 90% > 95%
KI 3: Life cycle (cycles) > 4 000 > 6 400 > 8 000
KI 4: Discharge rate (hours) Quicker than lead-acid No data No data
Table 24: Lithium-ion storage technology indicators
2025 2035
(EASE/EERA, 2013; Fuchs et (EASE/EERA, 2013;
Indicators 2015 al., 2012; IRENA, 2015c, 2015e; Fuchs et al., 2012;
Jaffe, 2014; RMI et al., 2014; IRENA, 2015c, 2015e;
Viswanathan et al., 2013) RMI et al., 2014)
400–1 500 200–600 120–380
(USD/usable kWh)
KI 1b: Installed cost
400–1 000 200–500 120–400
(USD/kW)
KI 1c: Installed cost
0.25–0.40 0.05–0.11 0.03–0.09
(USD/kWhlifetime)
KI 2: Round-trip
95%–98% > 95%–98% > 95%–98%
efficiency
KI 3: Life cycle (cycles) 1 000–5 000 No data No data
KI 4: Self-discharge rate
5% per month 2.5% per month < 1% per month
(% per month)
Table 25: Flow storage technology indicators
2025 2035
(EASE/EERA, 2013; (EASE/EERA, 2013;
Indicators 2015 Fuchs et al., 2012; Fuchs et al., 2012;
IRENA, 2015c, 2015e; Viswanathan et al.,
Viswanathan et al., 2013) 2013)
200–800 80–440 < 70
(USD/usable kWh)
KI 1b: Installed cost (USD/kW) 1 200–2 000 600–1 000 400–700
KI 2: Round-trip efficiency (%) 75%–85% > 75%–85% > 75%–85%
3 000–15 000
KI 3: Life cycle (cycles) > 10 000 > 10 000
(cell stack)
0.1%–0.4% per
KI 4: Self-discharge rate (%/day) 0.07%–0.27% per day 0.04%–0.15% per day
day
Table 26: Flywheels storage technology indicators
2025 2035
Indicators 2015 (EASE/EERA, 2013; ((EASE/EERA, 2013);
Viswanathan et al., linear extrapolation
2013) estimate)
KI 1a: Installed cost (USD/usable
1 500–4 000 1 200–3300 1 000–2 500
kWh)
KI 1b: Installed cost (USD/kW) 2 000–4 000 1 000–2 000 500–1 000
KI 1c: Installed cost (USD/
0.06–0.10 0.03–0.05 < 0.05
kWhlifetime)
KI 2: Round-trip efficiency 85%–95% > 85%–95% > 85%–95%
KI 3: Life cycle (cycles) > 100 000 > 100 000 > 100 000
KI 4: Self-discharge rate (%/hour) 5%–15% per hour ≤ 5%–15% per hour ≤ 5%–10% per hour
and materials with stronger components to themselves. In addition, research is looking at

handle more power. According to the US Pacific ways to extend the duration of cyclic periods, since
Northwest National Laboratory, capital costs of it currently has a high self-discharge ratio and
flywheels are expected to drop by half between overall mechanical stability issues (Low Carbon
2011 and 2020, to USD 88-173/kWh (Akhil et al., Future, 2013). Innovative research includes the
2013). use of thin-films of ceramic superconducting
materials to improve the mechanical properties
●● R&D 3: Improve and lower the cost of of high-temperature superconductors and
superconducting magnetic energy storage reduce the cost of manufacturing (DTU, 2013).
(SMES) In 2014, scientists at the Max Planck Institute
SMES has the potential for high-power, fast- demonstrated room-temperature conductivity
response energy storage. SMES uses low for very short time periods (Mankowsky et al.,
temperature magnets to efficiently store energy. 2014). If the duration of this behaviour can be
Research is ongoing to reduce the amount of extended, this will greatly increase the usefulness
power needed for cryogenic cooling to keep of SMES.
the coils at low temperatures, and to reduce
the high costs of the superconducting materials
Conversion Technologies: Patent Review
Figure 13: Top 10 countries for all conversion technology Top institutions patenting
patents filed from 2010 to 2014 conversion technologies,
2010-2014
Europe
International ● Bosch GMBH

● Nissan Motor
● Toyota Motor Corporation
Patents:
● GM Global Technology
100 Operations Inc.
5000
1,000
● Ford Global Technology LLC
● Hyundai Motor Company Ltd.
2,000
Source: Author elaboration; EPO, 2015a; EPO, 2015b Conversion technologies have
seen a significant decrease in
research interest over the past five
years.
Most of the major patent holders
Figure 14: Number of patents for power conversion technologies
for all years prior to 2010 and for 2010-2014
part to the need for intelligent
power management in cars.
Pre 2010 2010

to
2014
8000 Appliance manufacturers
7000
6000 are also pushing innovation,
5000
4000 since enhancements in these
3000
2000 technologies can improve
1000
0 the performance and cost of
DC/DC converter AC/DC converter AC/AC converter Electronics
appliances in the marketplace.
Power Conversion Technologies

in Annex 4.
● DC-to-DC conversion: galvanically and non-galvanically isolated DC/DC converters in the past five
years. Most focus is on low-power applications, which has some applicability to renewable mini-grids.
● Conversion between AC and DC: DC/AC or AC/DC conversion technologies which use wide band
gap-based power semiconductors, i.e., power converters integrating silicon carbide, gallium arsenide,
gallium nitride or diamond power switches.
● AC-to-AC conversion: AC/AC converters.
Indicators and summary of innovation impact Priority Gap 1 – Lower capital costs of
converters
Figure 12 summarises the expected impact of innovations
in cost reductions from 2015 to 2035 for flywheel, flow, Grid-following inverter deployments have scaled up
LAB and LIB technologies, depicting their cost range in with solar PV and followed cost reductions in the PV
USD/kWh versus USD/kW. market (IEA, 2014). Costs of grid-following inverters are
expected to decrease 18% by 2025 and 35% by 2035,
The following tables present more detail on the expected under projections from Fraunhofer ISE (2015a). Deutsche
impact of the innovations on the key indicators for 2025 Bank suggests a continuous price drop in the future
and 2035 for storage. equal to 10-15% per year, driven by cost reductions of
components, increases in efficiency and other advances
(Shah and Booream-Phelps, 2015). It is expected that the
6.4 Convert grid-forming and dual-mode inverters can benefit from
these trends as their use increases; battery inverters
Power conversion technologies have a critical constraint usually follow the advances of grid-following inverters,
in limiting the size for autonomous applications. The due to the wider deployment of the latter. The following
main innovations required are expected to address R&D activities portray some potential cost reduction
modularity, availability, low maintenance, low innovations to power electronics in the coming decades.
cost and higher efficiencies (Ozpineci et al., 2011), This research also will benefit future interconnection of
with expected price drops and more intelligent and isolation mini-grids that use DC distribution.
embedded technologies in the coming decades. A
particular concern for utilities is the possibility for Need: Use more abundant, lower-cost materials in
islanded mini-grids which are grid-connected to operate grid-forming (battery) inverters
safely in island mode during blackouts (Carey and
Miller, 2012; Laaksonen, 2010) with ongoing research Research is ongoing to reduce the costs of inverters
to address this issue. In addition, another R&D need for through the use of lower-cost materials that are more
inverters is their improved operation on intermittent or abundant. The trend during the last decade and for
weak grids. the years to come will be to reduce the weight of the
Box 6.11 – Alternative wide bandgap semiconductors

GaN: A 40% volume reduction has been achieved by replacing silicon semiconductors with gallium nitride,
which has been commercialised by Yaskawa. With this substitution, no cooling fans are needed, reducing the
necessary volume of the inverter. Princeton Power Systems also is testing the use of GaN for its 60 kW inverter
in order to reduce costs by 20% (Hoffmann, 2014). The wide rollout of GaN products is still limited due to their
requirements of increased decomposition pressures and high melting point (US DOE, 2011). Also, research is
required on the reliability, service lifetime and costs of GaN applications (Infineon Technologies, 2014).
SiC: Besides GaN, various experts point to the benefits of silicon carbide in the manufacturing of inverters and
battery converters. Overall costs for solar inverters can be cut by 20% due to the higher switching frequency
and power density of SiC (Schwarzer et al., 2014), with major benefits of increased efficiency and reducing
weight (Wilhelm et al., 2010). Researchers at Aalborg University demonstrated that the wide bandgap
semiconductors’ capabilities of fast switching, increased power density and high efficiency also can benefit
bidirectional battery converters (Pham et al., 2013). SiC deployment barriers include density control and
material availability (US DOE, 2011). The results of the German-funded project NeuLand showed that more
effort is required to lower the cost of SiC components.
Figure 15: Commercialisation stage of various graphene-based applications
Early-stage
Early-stage Commercial
Commercial
Market
MarketEntry
Entry Commercial
Commercial
research/conceptual
research/conceptual Prototyping
Prototyping
Anti corrosion coating
Supercapacitors R&D materials
Electronic packaging Batteries
EMI shielding
Graphene cables/wires
Transparent conductive films
Flexible connectors
Structural electronics
Thermal conductive composites
Source: Author elaboration based on Das, 2015
inverters by improving semiconductors and through with silicon. The integration of graphene
advances in circuit topologies (Fraunhofer ISE, 2015a). transistors in inverters was demonstrated
successfully in 2009 (Traversi et al., 2009).
●● R&D 1: Explore the commercial potential of Other attempts to fabricate graphene-based
wide bandgap semiconductors circuits resulted in bypassing the issue of doping
Inverters can benefit greatly by replacing variations, such as achieving voltage gain at
traditionally used silicon modules with wide physical gate lengths below 100 nm (Schall et
bandgap semiconductors like gallium nitride al., 2013). For graphene to be produced at a
(GaN) and silicon carbide (SiC). Although not large scale, there is a need for techniques that
cost-effective today, they potentially can reduce will scale it up from the laboratories to circuit
prices by more than half (Madakasira, 2013). Their (Traversi et al., 2009).
superior performance has been investigated
and successfully demonstrated in inverters, Figure 15 shows the commercialisation stage
rectifiers and DC-DC converters in a variety of of various graphene-based applications.
applications, including data centres (Zhang et al., It is foreseen that graphene transistors have
2015). Wide bandgap semiconductors respond more than a 10-year horizon (Das, 2015). The
to the market’s needs for smaller, lighter, cheaper Graphene Institute in Manchester, UK is working
and higher-power-density electronic products on substituting the use of silicon oxides with
that can handle high operating temperatures graphene-based photodetectors which are
(Esquivel, 2014; US DOE, 2011). They also have expected to be of lower cost and to reduce the
the potential to increase efficiency due to lower sizes of power electronics (Yang et al., 2014).
switching losses. At Sungkyunkwan University in the Republic of
Korea researchers have been working on the
●● R&D 2: Continue to research the potential of use of graphene based thin-film transistors,
nanomaterials which will move forward smaller applications of
Due to the fact that they are conductive and printable, flexible, transparent electronics at a
strong, nanomaterial (see Glossary of Terms) low cost (Chae and Lee, 2014; Kim et al., 2012).
transistors based on carbon nanotubes or two- At Pohang University in the Republic of Korea
dimensional graphene will eventually compete work is ongoing on using organic field-effect
transistors and graphene electrodes which frequency and to reduce the influence of transient
can achieve lower costs, light weight, flexible process on the power grid for a smoother and
and low-temperature processing for organic more reliable switchover (Fu et al., 2015). Other
complementary inverters (Jeong et al., 2014). groups driving innovations to lower the cost and
increase the market share for dual-mode inverters
include Princeton Power Systems, Schneider,
Priority Gap 2 – Combine diverse functions in
Siemens, Studer and Aalborg University.
inverters
There is a need for varying kinds of software development ●● R&D 3: Make battery management more
to model and control battery technologies and thus intelligent
facilitate the integration of electrochemical storage Intelligent battery management is becoming
devices into the electricity grid (EASE/EERA, 2013). more necessary due to the proliferation of new,
advanced battery technologies. Optimal Power
Need: Improved operation of battery inverters Solutions has been carrying out research on
control and integration through new algorithms
Battery inverters are incorporating new features that and strategies for their inverters to allow for the
improve their performance and that are able to better highest penetration of renewables and the use
interact with other components. of new battery technologies that are coming into
the market (OPS, 2015). Outback Power has been
●● R&D 1: Bundle additional features exploring new features, including its Advanced
Manufacturers, as discussed in Section 4, are Battery Charge profile, to ensure compatibility and
already offering products with new features. co-ordinate specific charging profiles with new
Additional innovation is under research: for battery chemistries such as lithium-ion, aqueous-
example, State Grid Hebei Electric Power ion, flow, fuel cell and others (Outback Power, 2013).
Research Institute in China, together with
Shandong Zhiyang Electric Company, are
Priority Gap 3 – Improve efficiency,
working on the addition of a discharge battery
inspection method through the use of a
particularly at partial load
sinusoidal pulse width modulation technology In the next decade, as grid-forming inverters are used
to improve performance (Li et al., 2013). Optimal more widely, it is expected that their efficiencies will
Power Solutions in Australia has been working on follow the increase that grid-following inverters have
the development of new high-capacity, parallel seen, in particular for DC-to-AC conversion.
power inverters than can provide greater power
stability (OPS, 2015). Need: New converter designs with high efficiencies at
partial output
●● R&D 2: Enhance dual-mode switching
capabilities New converter designs are focusing on higher
Research is looking at the capability of dual-mode efficiencies, particularly at partial load output which can
inverters to shift smoothly from grid to island mode drop to 30-40% when the load is less than 20%.
in black start and seamless forms (Soshinskaya
et al., 2014). To address this issue, the use of an ●● R&D 1: Explore the potential for transformerless
innovative droop control is a viable solution under DC-AC converters
research but still requires further development A transformerless DC-AC converter is an
(Tao et al., 2011). For example, at North China emerging technology for PV. Considerable
University a droop controller was proposed to research is taking place on increasing outputs
ensure a smooth switch between island and grid and efficiencies, and reducing the costs, weight
mode (Wen et al., 2015). At Shanghai University and sizes of grid-connected transformerless
work is ongoing on the use of a new switchover inverters (Blaabjerg and Ionel, 2015; Koutroulis
method based on controller state following to and Blaabjerg, 2011; Mohan and Rajan, 2015;
avoid the transient fluctuation of voltage and Shen et al., 2012). One proposed modification
Box 6.12 – Pushing inverter efficiency to its limits
Future Energy Electronics and Jiangsu University were able to achieve high efficiencies of 99.1% and 98.8%
using super junction MOSFETs and SiC diodes in a transformerless inverter (Chen et al., 2015).
Princeton Power Systems also has demonstrated a 30 kW grid-connected bi-directional converter achieving
99% conversion efficiency. The SiC transistors are superior to the silicon transistors due to their faster switch
and abilities to handle higher voltages, currents and temperatures. By 2016 the company will have a 30 kW
and 100 kW version commercialised (Marketwired, 2015).
includes the connection of the transformerless entire load range (Saravanan and PonGomathi,
converter’s negative terminal directly to the 2014). At the University of Colorado research is
ground to reduce ground leakage of current, ongoing into DC-DC converters for data centres
which increases the efficiency of solar power to improve efficiency and high conversion ratio
plants, especially those using thin-film modules (Costinett, 2013). Researchers from National
(Shen et al., 2012). Chen Kung University in Chinese Taipei achieved
Another solution is to keep the common-mode step-up and step-down conversion efficiencies
voltage of the output of the inverter constant, in of 96.3% and 95.6%, respectively, through the
order to limit the ground leakage of current. A use of synchronous rectifiers and antiparallel
prototype transformerless configuration of a CD- diodes (Liang and Lee, 2015). At MIT a resistance
Boost bipolar SPWM H-Bridge converter lowered compression network was proposed and achieved
the ground leakage of current and increased over 95% efficiency across a voltage range of
efficiency by 3% compared to a conventional 25-40 volts (Inam et al., 2014). The RCN and an
transformerless AC/DC converter (Azri et al., ON/OFF control narrowband frequency control
2014). Finally, the performance of another are capable of doing zero-voltage switching over
transformerless inverter has been examined a wide input voltage (Ibid.).
with a buck-boost DC-AC converter with two
switching cells instead of a transformer, including ●● R&D 3: Use new materials to improve efficiency
two switches, two diodes, one inductor and one Most transistors are made from silicon. Wide
capacitor in each one. The step-up/step-down bandgap semiconductors such as GaN and SiC
is achieved without any intermediate power are also able to deliver higher efficiencies. The
stage or transformers (Mohan and Rajan, 2015). current edition of a GaN-based inverter has a
Work is being carried out at the Institute for nominal power of 4.5 kW, which is expected to
Power Generation and Storage Systems at RWTH increase in the future, and its efficiency exceeds
Aachen University on optimising the efficiency 98% (Transphorm, 2015). Replacing traditionally
of grid-following inverters, particularly at partial used Si with SiC semiconductor modules also
loads (RWTH Aachen University, 2015). improves the inverter’s efficiency in partial loads
and reaches 98.8% (Deboy et al., 2011). The Cree
●● R&D 2: Improve DC-DC converter designs SiC-based three-phase string inverter is half the
The use of a power switch, soft switching size of a traditional Si inverter and one-third of
and voltage clamping have been proposed to its weight, and its operation does not derate at
achieve a maximum efficiency of above 95% and high temperatures (Esquivel, 2014). Fraunhofer
average efficiency up to 91% for a single-input ISE developed a small inverter of 10 kW using SiC
multiple-output DC-DC boost converter (Sridhar which enables an efficiency of 98.7% for use in
and Arulkumar, 2014). A boost converter for UPS devices, expected to influence similar future
high-voltage applications has been proposed innovations to other inverter types (Fraunhofer
which is based on a three-state switching cell, ISE, 2015b).
improving diode and capacitor design, which
demonstrated an efficiency of 92% for an
Figure 16: Converter technology cost ranges in 2015, 2025 and 2035
2500
2250
Converter cost (USD/kVA)
2000
1750
1500
1250
1000
750
500
250
0
2015 2025 2035
Year
Grid-forming Grid-following Dual-mode
Note: The total global renewable energy use of the original 26 REmap countries represents 75% of global final energy consumption.
Table 27: Grid-forming converter indicators

KI 1: Cost (USD/kVA) 500–1 200 400–1 000 300–800
KI 2: Efficiency at rated power DC to AC (%) 85–90 87–93 90–95
KI 3: Efficiency at rated power AC to DC (%) 90–95 92–97 95–98
KI 4: Lifetime (years) 5–10 7–12 10–15
Source: Appert and al-Mukdad, 2013; Mueller-Stoffels et al., 2013); proprietary manufacturer quotes, 2015; projections based on authors’
estimates
Table 28: Grid-following converter indicators

KI 1: Cost (USD/kVA) 110–170 100–150 100–150
KI 3: Efficiency at rated power AC to DC (%) N/A N/A N/A
Source: Fraunhofer ISE, 2014; Fraunhofer ISE, 2015a; projections based on authors’ estimates
Table 29: Dual-mode converter indicators

KI 1: Cost (USD/kVA) 650–2 500 520–2 000 450–1 600
KI 3: Efficiency at rated power AC to DC (%) 87–92 91–95 95–98
Source: Manufacturer’s proprietary specification sheets; projections based on authors’ estimates
MIMO converters should be bidirectional to
Priority Gap 4 – More converter options for allow integration of renewables and storage
diverse renewable mini-grid markets technologies. This helps to resolve safety
issues from, for example, lightning strikes or
Converter technologies also need to adapt to new equipment surges (Whaite et al., 2015).
applications that are flourishing. In particular battery
inverters, dual-mode inverters and DC-DC converters Indicators and summary of innovation impact
should be able to handle wider applications.
Figure 16 summarises the expected impact of
Need: Improved converter modularity and availability innovations in cost reductions from 2015 to 2035 for
at larger sizes grid-forming, grid-following and dual-mode converters.
Large-scale battery inverters are offered by a very Tables 27-29 summarise the expected impact of the
limited amount of manufacturers. innovations on the expected values for 2025 and 2035
key indicators for converters.
●● R&D 1: Research on large battery inverters for
bigger applications
A few manufacturers, such as S&C and Siemens 6.5 Consume
AG, are offering large-scale inverters for renewable
mini-grid interconnection, and plenty of research Reduced and strategic consumption of electricity
is ongoing. The M5BAT pilot installation combines can significantly lower costs. Energy efficiency and
various battery technologies in a 5 MW storage demand-side management (DSM) are very broad areas
management installation for grid stabilisation. of research in energy. This section provides some brief
The project will investigate, among others, the examples of technologies that can be used to improve
performance of large inverters ranging between mini-grid deployment, with a focus on the attributes of
0.5 MW and 1 MW with the main grid (SMA, innovation critical to mini-grids.
2014; Thien et al., 2015). In Canada, Schneider
inaugurated its MicroGrid Lab in 2014 to carry out The local nature of mini-grids — supply and use
research on new large-scale (up to 2 MW) inverter are usually located near each other — provides an
technologies and a three-phase central inverter opportunity for innovative approaches in these areas.
platform (Hales, 2014). Flexible loads are beneficial in renewable-based mini-
grids, since this allows the load demand to better match
Need: Bidirectional DC-DC converters that can handle production from variable renewable generation. This
multiple input and output voltages can reduce the need for expensive storage. DC-focused
end-uses can help to reduce the conversion costs and
As DC appliances become more popular, DC-DC reduce conversion efficiency losses. Innovation in how
converters must adapt and be able to handle multiple energy is consumed is critical to provide low-cost, high-
inputs to ease their use for consumers. reliability energy services to energy end-users.
●● R&D 1: Create more flexible DC-DC converters

Priority Gap 1 – Increased commercial
Simpler DC mini-grid architectures with fewer
components could result in more efficient
availability of efficient end-uses
and lower-cost energy conversion. One Integrated resource planning stems from the idea that
design that has potential is multiple-input reduced consumption can have the same value as
multiple-output (MIMO) converters. Instead of increased generation and supply. This approach led
many converters, a MIMO converter bundles the Rocky Mountain Institute (RMI) to coin the term
conversion capabilities into a more reliable and negawatts. Negawatts are “a theoretical unit of power
compact solution. They have the potential to measuring energy saved” (Lovins, 1990). Innovation
centralise control and reduce communication in energy-efficient appliances is an ongoing trend of
needs (Kathiravan and Govindaraju, 2015). research applicable to all electricity sectors. Programs
For DC mini-grids to become a reality, such as Energy Star in the United States have set targets
Consumption Technologies: Patent Review
Figure 17: Top 10 countries for all consumption /consume- Top institutions patenting
function technology patents filed from 2010 to 2014 consumption / consume-
function technologies,
Europe
2010-2014
International
● LG Electronics Inc.
Patents:
100 ● State Grid Corporation of
200 China
500
● Samsung Electronics Company
1,000 Ltd.
2,000 ● Toshiba
● Siemens AG
Source: Author elaboration; EPO, 2015a; EPO, 2015b ● Sony Corporation
● Hitachi Limited
● BSH – Bosch Siemens
Hausergate
Figure 18: Number of patents for consumption / consume- Most of these are appliance
function technologies for all years prior to 2010 and for manufacturers, which could be
2010-2014 major contributors to innovation
in renewable mini-grids since their
7000
Pre 2010 2010
to
2014 products will consume a major
6000 portion of the energy in renewable
5000
4000 mini-grids as well.
3000
2000
1000
Backup technologies have seen a
0 twofold increase in research focus.
EE DSM Back-up

Consumption technologies
in Annex 4.
● Energy efficiency: elements or equipment involving protection devices and home appliances involving
heating, ventilation or air conditioning units.
● Demand-side management: energy-saving modes or efficient standby (e.g., detecting absence of load
or auto-off), and demand response devices (e.g., load shedding and peak shaving).
● Backup: elements or equipment involving energy storage, UPS equipment or standby emergency
generators involved in the last stages of power distribution.
for appliances that are driving manufacturers to design environment, distribution losses are minimised.
appliances that lower energy needs, and have created Both of these examples significantly reduce the
technological innovation. need for primary electrical energy supply, while
increasing the usefulness of energy provided
Need: More efficient appliances, particularly for to customers. These types of appliances are
remote energy access markets foreseen to be commercially available within 10
years (Goetzler et al., 2014).
A 2013 study from the ACEEE estimated that there
is a savings potential of up to 27% of electricity by Need: Increased alignment between DC renewable
2030 in the United States through programme designs, mini-grids and connected equipment
technologies and customer markets, and as high as 65%
for residential lighting technologies (York et al., 2013). Most research effort on DC distribution has been done for
data centres and telecom facilities where IT and telecom
●● R&D 1: Increase commercial scale-up of equipment, as well as necessary storage technologies
efficient appliances such as batteries or flywheels, are in DC (Murrill and
Various emerging innovations are being Sonnenberg, 2010; Nordman and Christensen, 2015).
investigated in research centres and companies However, the residential market has a large body of
in the United States, Europe and Asia regarding knowledge as well. “DC appliances have served niche
household appliances including refrigerators, markets for decades, offering proof of their capacity
tumble dryers, clothes washing machines and to deliver energy services for all major electricity end-
cooking appliances (Goetzler et al., 2014). For uses.” (Garbesi et al., 2011).
example in refrigerators advanced compressors
are expected to achieve a 20% higher efficiency ●● R&D 1: Increase commercial scale-up of
in the coming decade. Research is being carried appliances designed for DC grids
out on linear and electrochemical compressors to A 2011 LBNL study found that “DC-based design
substitute currently used reciprocating and rotary increases the efficiency of all major residential
ones. In the longer term magnetic refrigeration and small commercial end-uses, including
is expected to lower energy consumption by cooling, lighting, space and water heating,
20-50%, with ongoing research at Oak Ridge clothes washing, and dishwashing” (Garbesi
National Laboratory, General Electric and many et al., 2011). In the United States, electronics
others. One of the main challenges that the will be responsible for more than 20% of a
industry faces with innovative technologies is building’s energy consumption by 2030,
to achieve similar performance as conventional and for around 40% by 2050 (Marnay et al.,
ones with reduced costs. 2012a), providing a strategic entry point for DC
appliances. DC appliances need to increase in
●● R&D 2: Integrate diverse energy end uses the marketplace to achieve economies of scale
through integrated energy services planning and drive down costs. For example, although
The design of appliances that serve energy DC refrigerators are more efficient than Energy
end-uses in an integrated manner can increase Star AC refrigerators, they can cost about 3-4
effectiveness. For example, a kitchen design times more (Garbesi et al., 2011). This is due in
where the excess water and heat of one large part to the much smaller number of DC
appliance is captured to be used by another refrigerators currently produced. Research into
reduces the overall energy need. A prototype the use of DC appliances is ongoing at Aalborg
kitchen by Whirlpool is estimated to increase University through their Intelligent DC Microgrid
energy and water efficiency by 70% (Goetzler Living Lab, at NTT Facilities in Japan (Noritake
et al., 2014). Another research concept is the et al., 2014) and at Xiamen University in China
ZEHcor Interior Utility Wall, a pre-fabricated (Zhang et al., 2015), among many others.
wall with an external heat exchanger that feeds
kitchen, laundry and bathroom appliances. Due ●● R&D 2: Develop more flexible connectivity
to its clever fabrication in an external, protected between DC line and appliances
Figure 19: Conceptualisation of a mini-grid based on load requirements
Source: DNV KEMA, 2014.
Increased supply voltage has gained popularity Ongoing research is seeking to increase the
among research groups worldwide for DC power delivery from USBs to further allow more
data centres. From traditional 48 volt DC appliances to be charged in such a way. Another
(VDC) standardised mini-grids, the involved focus of research has been to increase and make
groups have proposed various supply voltages more flexible the voltage range of appliances to
between 300 VDC and 550 VDC, with 380 VDC ease their use.
being internationally standardised since 2009.
However, others are opposing the choice of 380
Priority Gap 2 – Better tools for adapting
VDC and proposing 350 VDC due to its scalability
towards the 1 500 VDC high voltage (Willems
consumption to energy supply (DSM)
et al., 2013). There is an increased availability of A 2015 RMI study created the term flexiwatts to
appliances that can be charged through USB. describe those “electric loads that demand flexibly
Box 6.13 – Internet of Things (IoT)

IoT is penetrating more and more in conventional appliances. The main technological drivers are increasingly
low-cost wireless hardware, the proliferation of smartphones and expanding mobile networks (GSMA, 2015).
It is estimated that by 2030, the number of connected devices worldwide will reach 100 billion (KPMG,
2015). Even though the exchange of information between appliances and users is already widespread,
the communication between the devices alone with IoT is supposed to gain momentum and give the
responsibility to the smart meters to take decisions.
Table 30: Consume indicators

Limited to LEDs; Expands to include DC
Expands to include
Availability of DC appliances refrigerators, TVs, media power supplies for natively
DC appliances for
in regular marketplaces appliances and others for DC technologies including
heavy energy uses
RV and off-grid markets laptops and digital TVs
Internet of Things in Limited to high-end High energy use and heavily
All appliances
appliances appliances used appliances
Appliance efficiency Baseline 10% reduction 20% reduction
shifts in time” (Bronski et al., 2015) (see Glossary Samsung envisions that by 2020 all of its devices
of Terms). Flexiwatts can provide services such as will be open and connected to the Internet. Google
reducing a grid’s peak load, shifting consumption in also has shown interest in Internet-enabled
relation to pricing times, and matching load profiles to devices as well as smart meters by partnering with
renewable energy generation (Bronski et al., 2015). It is various market players, whereas Apple is creating
important to identify loads that can have this flexibility. iOS applications to communicate and control
Loads can be divided, according to their importance, appliances. In order to enhance the development
into uninterruptable, critical and noncritical ones to of appliance connectivity and boost economies
properly manage the demand and decide which ones of scale, there is a need to reduce technological
are more flexible (see Figure 19). Intelligent controls fragmentation and focus on the connectivity
can use load flexibility to strategically reduce the need between devices and the cloud by supporting the
for, primarily, storage. initiatives of machine-to-machine (M2M) alliances
and standardise the sector. For this, GSMA has
Need: Better tools for managing the allowed end- created the GSMA Connected Living programme
uses and appliances to converge M2M and smartphones/tablets. It
is believed that the entrance in the market of
The use of communication technologies to improve connected homes of companies like Apple and
energy consumption patterns is an ever increasing area Google will rapidly boost the compatibility of
of research focus. products.
●● R&D 1: Increase commercial scale-up of smart ●● R&D 2: Explore new and smarter end-use
appliances based on the Internet of Things and control
the connected home By constantly recording and communicating
The interconnection and intercommunication real-time capacity needs and use of the devices
among household appliances and cars can and by distributing prices signals and forecasts,
create savings for the users and increase appliances can communicate with a centralised
security. For example, a car could control controller to manage their energy use (Nordman
remotely the devices of the house depending and Christensen, 2015). By most intelligently
on the location of the owner (for example, turn controlling the use of electricity, the need for
off heating when owners are travelling). Also, in expensive storage is reduced. The need to oversize
the context of integrating other functionalities wires and the use of circuit breakers for energy
to the appliances besides consumption, many management also will be reduced, although this
appliances are now incorporating storage impact will be smaller.
and function wireless. Such loads can act as
deferrable ones if plugged in when not used.
Major investors are opting for it and are announcing
their plans for actions for the following decade.
Indicators and summary of innovation impact and more accurate wind and solar predictions are key
for increasing the penetration of renewable energy.
The following tables summarise the expected impact Research on smarter and more flexible meters that
of the innovations on the expected values for 2025 and are able to adapt to new business models, time-of-use
2035 key indicators for consume. pricing, AMR and AMI are key areas of research and
innovation to improve current metering technologies.
6.6 The renewable mini-grid of the Already LIBs and other chemistries such as organic flow
future batteries are showing signals of driving costs down
and uptake in the market. Still, LABs are expected to
More modular solutions and off-the-shelf hardware continue to be a major storage technology in renewable
and software are being developed with an expected mini-grids, with new more robust ALAB being capable
increase of options that can allow for lower costs and of handling more cycles at greater efficiencies. STES are
increased functionalities. Short-term controls with still at an early stage of research, innovations in PCMs
the ability to integrate more sophisticated algorithms and TCMs are expected to allow for an increased used of
Table 31: Summary of support required for R&D opportunities
Needs fundamental research Needs commercialisation support

(in technology venture phase) (in commercial scale-up phase)
●● Storage: Lowering the cost of storage technologies. ●● CMM: Integrated and bundled controls.
●● Storage: Reducing maintenance and increasing ●● CMM: Support for more modular deployments that
robustness of storage. allow renewable mini-grids to scale up as needs
●● Storage: Research into technologies that can and costs change.
efficiently store energy for long periods (e.g., liquid ●● Storage: Providing support to other chemistries
fuel from renewables). that provide specific storage services critical to
●● Storage: New and novel technologies, e.g., chemistries productive uses, e.g., instant high-power demand
that use more abundant and environmentally friendly ●● Consume: Providing support for efficient DC
materials that are easier to recycle at the end of their appliances to achieve scale.
lifetime. ●● Consume: Providing support to advanced features
●● CMM: Supporting applied research into interoperability and tolerance of appliances.
between components of a mini-grid. ●● Convert: Providing support to encourage dual-
●● CMM: Central mini-grid control versus distributed mode converters (combined grid-forming and
control. grid-following converters).
●● CMM: Improving wind, solar resource predictions. ●● Convert: Providing support to increase the available
●● Convert: Improving materials that increase efficiency size of inverters for larger renewable mini-grids.
at partial load and lower costs, size and weight. ●● Generation: Reducing costs, improving efficiencies
●● Convert: Power interface between mini-grid and main and energy capture capability, and lowering
grid and clusters of mini-grids. maintenance needs.
●● Consume: Integration of functionalities into ●● Renewable mini-grid: Providing incentives for
appliances. the use of renewable mini-grids to obtain high-
●● Consume: High tolerance to quality and range of resilience from final users and reduce redundancy
power supply. needs from utilities.
●● Consume: DC and AC compatibility. ●● Renewable mini-grid: Promoting the use of
●● Generation: New and novel technologies, e.g., PV autonomous grids as an alternative for rural
cells that use more abundant and environmentally electrification.
friendly materials.
●● Generation: Lower costs, e.g., less expensive, novel PV
materials that require less-intensive manufacturing.
thermal storage over long periods. Supercapacitors are and reduce size and weight. Conversion technologies
a robust technology which can benefit from innovations also are expected to increase their features, e.g., be
in the use of grapheme and be capable of delivering able to handle and communicate better with new
high power and an extensive life. storage technologies. The increasing use of DC grids
and appliances is also driving the need for more efficient
The increased use of GaN and SiC are the most expected and lower-cost DC-DC converters. Finally, the market
innovations to happen in transistors for conversion availability of conversion technologies is expected to
technologies to bring costs down, increase efficiencies, increase and to include larger-power battery inverters.
Figure 20: The renewable mini-grid of 2025

CMM equipment incorporates new controls, creating increasingly stable grids. Renewable mini-grids
facilitate smarter decisions as intelligent supervisory controls are integrated with improved solar and
wind predictions. Interoperability and integration standards have been developed and implemented,
along with more widespread and flexible plug-and-play capabilities. More-robust energy meters include
features to flexibly support new business models and time-of-use pricing. These are readily available at
low cost. Cloud-based monitoring centres and hubs proliferate.
Generation Storage
Grid connection
Solar PV price reductions Lithium-ion batteries (LIBs) and
(if available)
continue, driven by advances in advanced lead-acid batteries (ALABs)
DSSC and organic chemistry. Solar are cost-competitive with ordinary
is the default power-generation lead-acid batteries (LABs); LIBs
source for renewable mini-grids, have become widely used and are
although wind and biomass considered a safe technology, enabling
remain strong options. Meanwhile, greater integration of renewables.
improved resource assessment
technology reduces barriers
for wind and hydropower. More Consumption
modest technological innovations Increasing use of high-efficiency and
for wind and biogas yield steady DC appliances reduces electricity costs
cost reductions. for home owners and businesses.
Conversion
High-efficiency GaN semiconductors have become widespread in inverters. Standard versions of these
incorporate additional features to handle new battery technologies. Increasing numbers of inverters can
operate in two modes, encouraging economies of scale that will push costs lower. DC/DC converters are
also increasingly common, with features to support renewable mini-grids. Inverters are available in a
wide range of sizes, increasing their potential impact.
Source: Author elaboration, graphics from ©chesky/Fotolia
Figure 21: The renewable mini-grid of 2035

Renewable mini-grids use smart controls that enable near-optimal decisions based on distributed
intelligence and robust resource predictions. Interoperability and integration standards have continued
improving and are embedded into all equipment. Smart meters are standard for renewable mini-grids,
providing more features and further lowering costs. Monitoring technologies leverage cloud-based
and hub centres and are less expensive. Preventive and corrective actions can be taken automatically.
Off-the-shelf designs draw on international experience, adapting it automatically to local needs.
Grid connection Storage

(if available) Newer battery types are cost-
competitive with LIBs and ALABs,
further reducing energy storage costs.
Long-term storage and improved
high-power output are affordable,
Generation reducing the use of diesel generators.
Power generation based almost
exclusively on renewable energy
is cost-effective for mini-grids. Consumption
Innovations in nanomaterials High-efficiency and DC appliances
and advanced chemistry may have become standard, further
further reduce the cost of solar reducing electricity costs for home
photovoltaic (PV) power. owners and businesses.
Conversion
New nanomaterial semiconductors, such as carbon nanotubes (CNTs), are increasingly common in
converters. Dual-mode inverters that can operate even when the rest of the grid is down are readily used
in the renewable mini-grid due to their low cost.
Source: Author elaboration, graphics from ©chesky/Fotolia
Table 32: Table of unsubsidised cost ranges in real USD for renewable mini-grids from 2005 to 2035
for a 100% renewable energy community system
USD/kWh for 100% RE 2005 2015 2025 2035

AB USD 0.85–1.28 USD 0.47–0.71 USD 0.30–0.45 USD 0.19–0.29
AF USD 1.05–1.57 USD 0.61–0.92 USD 0.38–0.57 USD 0.23–0.35
Progress in the efficiency of appliances already has been refrigeration is expected to be 20-50% more efficient.
a key area of research with significant improvements The use of appliances that can operate with DC input
to date. Still, more efficient appliances are expected is expected to increase significantly, along with cost
to make their way on to the market, e.g., magnetic reduction trends and standardisation of the DC line. One
Figure 22: Plot of renewable fraction vs. real levelised cost of energy for 2015, 2025 and 2035
$1,00
$0,90
Levelised Cost Of Energy (US$/kWh)
$0,80
$0,70
$0,60
$0,50
$0,40
$0,30
$0,20
$0,10
$0,00
0% 20% 40% 60% 80% 100%
Renewable Fraction (% energy from RE)
2015 2025 2035

minimum cost renewable fraction

of the key breakthroughs taking place is through IoT into and soot to lower their maintenance needs. Wind and
conventional appliances that allows for interconnection hydro turbine generators are expected to be able to
and intercommunication for a more intelligent use of harness a wider range of wind speeds and flow rates,
electricity. respectively, through better designs, materials and
embedded electronics.
It is expected that PV silicon-based module prices,
despite significant price drops since 2005, will The key innovations required can be split into those that
continue to decline up to 60% by 2035 (IEA, 2014). require fundamental research to support technology
This will be driven by thinner wafers and improved venturing and those that require support for commercial
manufacturing, among others. Next (third)-generation scale-up. These are summarised in Table 31:
PV technologies such as DSSC and organic cells are
expected to start coming on to the market, with All of these innovations and more are expected to
Perovskite cells being among the most promising. enable ubiquitous uptake of renewable mini-grids.
Maintenance needs for wind turbines are expected It also enables project developers and planners to
to go down due to better designs and to the use of use renewable mini-grids to have better-matched
high-tech sensors that are able to monitor blades and options for the energy supply of the future. Ultimately,
complement new preventive maintenance strategies. these developments can lead to improved access to
Gasifiers are expected to be able to handle a wider electricity in unelectrified areas and to more resilient
amount of feedstocks, and to better handle slagging grid-connected communities and industry.
Visualising the renewable mini-grid
of the future
The expected technological advancement of the

renewable mini-grid technologies through 2025 and
2035 are summarised in Figure 20 and Figure 21:
6.7 Innovation leads to cost

reduction of renewables-based
mini-grids
Technological innovations are expected to dramatically
reduce the costs of renewable mini-grids. Table 32
summarises the projected evolution of costs for
renewable mini-grids that draw 100% of their energy
from renewable sources.
It should be noted that many of the renewable mini-

grids installed will not draw all of their energy from
renewable sources. If the amount of renewables (or
storage) is too high or too low, the price will be higher.
Additionally, a renewable mini-grid that includes a
diesel generator often can have lower costs than a
renewable mini-grid that gets 100% of its power from
renewable sources. This concept is show in Figure 22,
which shows the total LCOE from the lowest-cost solar
PV mini-grid design. Each point on the lines represents
a system with varying percentages of energy from
renewable sources (solar, in this example). The optimal
fraction of energy for the low-cost renewable mini-
grid increases; as innovation occurs, the renewable
mini-grids are driven to use more and more renewable
energy. This improves their environmental performance
while reducing costs.
Refer to Section 3.1 for more background on the cost

calculations, and Annex 7 for the input assumptions and
modelling approaches.
7 THE ROLE OF KEY PLAYERS IN
DRIVING INNOVATION
Readiness for large-scale market deployment can be market incentives can support early market adoption
accelerated. This section includes a menu of options for the for new technologies. In parallel, training, information
public as well as the private sector. Some can accelerate dissemination and creating an appropriate regulatory
development such as provision of funds to support research framework are necessary for successful deployment and
and innovation, while others can provide momentum adoption of new technologies.
such as private sector investment in new innovations.
Most importantly academia may play an important role
Portfolio of policy instruments
in generating new concept ideas and challenging the
traditional state of the art among new generations of Figure 23 depicts, at a high level, how IRENA
decision makers. The following subsections portray some recommends that technology innovations in general be
options for different stakeholders to promote such new funded across different stages of development.
technological innovations.
Creating and sharing knowledge through funds

and subsidies for supporting fundamental
7.1 The role of policy makers
research and demonstration projects
IRENA has developed a range of policy tools for There is a need for funding for fundamental research
innovation. These have been adapted for renewable that will most benefit innovations. Key priorities for
mini-grids, as shown in Table 33: technologies that require fundamental research are
summarised in Section 6.
Innovations start with initial provision of funding for R&D
activities that can support universities, research centres Most research funds are expected to be geared towards
and public-private partnerships for fundamental research. technologies from the generation, storage and consume
Once a concept has been proven in the laboratory, functionalities due to their wide applicability in many
policy makers can encourage pilots and tests for the sectors. Meanwhile, more specific CMM and conversion
technology. In this step, it is critical to provide support technologies are most likely to see less investment;
through grants that can allow demonstration projects to nevertheless renewable mini-grid research funds are
happen. Once technologies have been successfully piloted, becoming increasingly available (Ellacott, 2015).
Table 33: Policy options to drive innovations
Economic Educational Regulatory Market

Creating and sharing New flexible/open
Building competence
knowledge through funds standards that encourage
through incentives for
and subsidies for supporting development, removal of
training and scholarships, Flexible markets through
fundamental research and standards that do not fulfil
industry support use of instruments such as
demonstration projects realistic needs any more,
Developing infrastructure sets targets, taxation, feed-in tariffs, net metering,
through public-private labelling, consumer renewable portfolio
partnerships and public information, and local standards, government
Diffusing knowledge
investments procurement and media
through international institutional autonomy, campaigns
Providing financing such co-operation protecting intellectual
as loan grants and public property to encourage
venture funds patents
Source: IRENA, 2015f, adapted by authors
Figure 23: Technology readiness level
Basic Science Applied Market Commercial

Demonstration
and R&D R&D Development Deployment
Human Competence and Advanced degree programs; post-doctoral Technical education, industry Entrepreneurial
Human Capital fellowships apprenticeships; “ upskilling” education
Iterative product development

Creating and Sharing New
Knowledge Cooperative public-private RD&D RE Resource Data (e.g. Atlases)
Membership in supranational organizations

Knowledge Diffusion
and Collaborative
Incubation of Interactive learning networks Novel tech transfer
Networks
seed-stage entrepreneurship for value-chain growth pathways
Governance and the
Regulatory Removing financial barriers to entrepreneurship
Environment
Robust intellectual property protection Encourage new retail models
Developing
Infrastructure Grid-connected RET Public-private
demonstration parks partnerships
Providing Finance Technology “Valley of Commercialization Microfinance;

Death” (seed) finance “Valley of Death” (growth) end-user
finance finance
Creating Markets Public procurement Demand support
Technology Venturing Commercial Scale-up Adaptation
Source: IRENA, 2015g
Developing infrastructure through public- tested in the lab, and validation and refinement are needed
private partnerships and public investments to ensure that it complies with its expected performance
Mini-grid technology sits at the interface between utilities in real-life operating conditions. Many utilities, despite
and customers, and often is subject to governmental interest in the technology, are hesitant to use renewable
regulations but also must cater to the needs of market mini-grids more widely in their networks due to lack of
forces. Collaboration with the private sector is a rational familiarity and uncertainty with their impact on their main
response to this reality. New technology development grids. Pilot projects can overcome these hurdles and assist
through public-private partnerships are increasingly consumers in considering renewable mini-grids as a core
common for new product development and provide a tool in safely supplying their energy services, both grid-tied
way to commercialise research while complying with or autonomously. Renewable mini-grids provide a least-cost
broader socio-political needs. For example, Panasonic technological alternative to the traditional utility approaches
Eco Solutions Canada has partnered with General of increased centralised generation and adding poles and
Electric Digital Energy and University of Ontario Institute wires. Or, in the case of energy access, they offer a sensible
of Technology to develop the Microgrid Research and alternative to extending the grid from remote expensive
Innovation Park with public funding from the Ministry of generating plants.
Energy of Ontario (Ontario Ministry of Energy, 2014).
For example the New York State Energy Research and
Development Agency has launched the New York Prize
Providing financing such as loan grants and
competition that provides USD 40 million in funds for
public venture funds communities that want to develop their own mini-grid
The need for support to deploy the innovations achieved (NYSERDA, 2015a). The initiative invites proposals with
in the laboratory and to test the results under real-life emphasis towards storm-impacted communities in New
conditions is particularly relevant in renewable mini-grids York State, and low- and moderate-income communities,
because, in this case, the consumer and its behaviour is an using evaluation criteria based on the benefits and impacts
integral part of the active functionalities. This cannot be expected from the proposed projects (NYSERDA, 2015b).
Such efforts are expected to move forward innovations of progress. For example, the Intelligent Microgrid Lab
more resilient renewable mini-grids. The California Energy collaboration between Aalborg University in Denmark and
Commission has a specific branch for carrying out research Tsinghua University in China seeks to spread mini-grid
and energy innovation – including work on efficient, low- knowledge globally.
emission heat and electricity for on-site energy security
– and is now deploying a utility mini-grid pilot project. Policies to identify successes, as well as to catalogue lessons
learned, are critical for future project development. Mini-
With regard to off-grid renewable mini-grids, there have grids are a distributed technology. Increasing access to
been numerous grant projects for pilots: for example, information for sound decision making and planning will
the EU-ACP Energy Facility has financed several pilot increase the ability of these smaller grids to proliferate.
demonstration projects in Burundi, Cape Verde and Guinea There are several international, regional and local institutions
Bissau, among others. These projects have provided initial seeking to share information. These include IRENA, the
stepping stones to renewable energy-based mini-grids, World Bank’s ESMAP group, the IEA-RETD, the EASE and
including support to innovations in increasing solar fraction, EERE, ARE and JRC. HOMER Energy has created an industry
metering and others. In Mexico, the Corporación Federal partner programme that helps local organisations that would
de Electricidad, with financing from the World Bank, has like mini-grids to connect up with international technical
deployed 100% solar mini-grids in over 30 communities. experts and funders to ease the creation of mini-grids.
There also is a need to better inform and incentivise end-

Educational policies
users and utilities on, for example, using interconnected
mini-grids to increase resilience. In addition, it is important
Building competence through incentives for
to increase awareness among governments, multilateral
training and scholarships, industry support
organisations, and others of the ability of autonomous
As mini-grids are increasingly deployed, a new generation renewable mini-grids to provide quality services, achieve
of energy practitioners and engineers will be required. lower costs, and be more environmentally friendly than
These energy engineers will need a new skillset beyond traditional grid-extension and stand-alone systems. These
the traditional planning and design for centralised electrical organisations can help with increasing social awareness of
grids. They will need to understand new generation the benefits of renewable mini-grids.
technologies, new storage technologies and advanced
controls.
Regulatory policies
There are currently no mini-grid-specific university courses, There are increasingly more technical regulations
but, for example, the MIGEDIR network (MIGEDIR, 2015) has (codes) and engineering standards (e.g., plug-and-play
been developing curricula focused on rural mini-grids. In or communication protocols) to standardise mini-grids.
addition, several energy master’s courses at universities do However, there is a need for broader international consensus
include lectures on mini-grids, and many master’s and PhD geographically and across industries, as well as for more
students focus their dissertations on the different types flexible and general standards that do not hinder innovations.
of mini-grids. Policies need to encourage programmes
that focus on mini-grid-specific issues and technologies. On one hand, numerous existing platforms for creating the
There is a need for mini-grid degrees for undergraduates, necessary standards exist. Policy makers can provide financial
secondary degrees in mini-grids for graduate students, support and/or align with standards created by traditional
and continuing education for professionals. To further standards organisations such as IEC or IEEE to create
increase impact, policies can offer incentives for training sensible regulations. They also may provide support to new
and scholarships to encourage participation. entrants focused on coalition building around the smart grid,
such as the SmartGrid alliance or the SGIP. Such standards
development should focus mainly on safety issues, e.g., of
Diffusing knowledge through international
interconnection of a renewable mini-grid to the main grid.
co-operation
Diffusion of knowledge through international co-operation On the other hand, excessive standards pose the risk
can engage key players in different regions to share of encapsulating technologies and limiting innovations
and not being able to adapt or cope with constant One successful approach is to offer financing mechanisms
innovations in the industry. For example, standardising that drive renewable mini-grid deployment. An example
equipment/operations inside the compounds of a is the renewable energy purchase tariff that is structured
renewable mini-grid should be more flexible and allow to enable rural energy subsidies to fund renewable mini-
architects to design according to local needs/demand, grid projects (Fulton et al., 2010; Moner-Girona, 2009;
with constraints dictated mainly by appliances. Solano-Peralta et al., 2009). This tariff structure is being
considered in China, Colombia, the United Republic of
The standards that are created need to be adapted Tanzania and Uganda (Arango-Manrique et al., 2015; He
and included in regulatory frameworks to enable et al., 2015; Moner-Girona et al., 2016). For these, financing
more competition. Appropriate implementation of can come from the avoided cost of energy production in
these standards will help to prevent bad outcomes, rural areas, which is much higher due to the typical reliance
for example manufacturer lock-in. Policies that enable on expensive diesel, or from international initiatives such
continued competition throughout the lifetime, during as the GET FiT programme (Fulton et al., 2010).
repowering and retrofit will help to prevent this.
It is common practice in many countries to provide a tax
Internationally, few regulations exist that robustly cover rebate (or to forgo taxation entirely) for alternative energy
the role for mini-grids. Mini-grids often do not fit into generation. Common examples include the Investment
existing regulatory frameworks, and are complicated by Tax Credit for renewable energy in the United States, or
split responsibilities. The state of New York is attempting providing a tax exemption for renewable energy generation
to address these issues with its Reforming the Energy products, which is common in many countries including
Vision initiative, which encourages utilities to allow Costa Rica, Haiti and Mexico. However, many of these tax
customers to explore distributed options such as mini- incentives do not include support equipment required
grids (NY DPS, 2016). Appropriate regulations require a for renewable mini-grids. Extending these exemptions
balanced approach that is flexible yet useful. A robust to equipment that is necessary for the five renewable
regulatory environment must balance regional planning mini-grid functionalities can support the deployment of
while allowing for local participation with mini-grids. renewable mini-grids and growth of the industry.
For example, the United Republic of Tanzania has made

big progress in defining specific regulation for mini-grid 7.2 The role of private investors
deployment and operation (Tenenbaum et al., 2014). For
grid-connected renewable mini-grids, many utility operators Mini-grids that use renewable energy technologies are
are faced with the uncertainty of how to incorporate a cost-effective technology today, particularly in remote
and manage these renewable mini-grids. The values markets that currently depend on fossil fuels for reliable
that renewable mini-grids offer do not fit into traditional power. The private sector can focus on deployment of
interconnections for generation, which creates a need mini-grids with a long-term vision for renewable mini-
for revised approaches to interconnection and operation grids. Renewable mini-grids will become cost-effective
standards, as well as requirements on anti-islanding and as storage costs continue to decline.
fault low-voltage ride-through (Tao et al., 2011).
Advancing technologies within advanced controls (i.e.,
CMM functionality) is a near-term goal and can enhance
Market policies
the roll-out of today’s mini-grids.
A number of near-commercial technologies would
benefit from support in commercialisation – in particular,
Undertake fundamental research
support to overcome the so-called valley of death that
traps good research ideas before they can become There is a need for private sector investment in new
commercially viable. A list of the technologies that need technologies, even if they are not near commercialisation.
commercialisation support to transfer from demonstration Private sector involvement can help to move early
to market deployment is provided in Section 6. innovations from the laboratory to commercial solutions.
Companies such as Sony, Toshiba, Panasonic and to transfer their knowledge and technologies into the
Samsung are investing heavily in new technological renewable mini-grid sector.
developments and designating specific funds for research.
These investments include supporting internal research
Participate in industry groups: develop
laboratories and facilities, and providing funds through
contests or grants for other institutions.
standards and build relationships
A range of standards are being developed by industry
consortia. The private sector can generate a critical
Pilot projects
mass among industry partners, reach out to utilities and
Several private players in the market are pushing work with the public sector to develop new technology
investments in new technologies and research facilities. standards. Collaborations between energy firms and
For examples, the Japanese firm Sumitomo Power information technology firms will leverage the strengths
System R&D Research Centre was created in 2010 of each to drive the smart grid revolution that can
and developed a micro smart grid demonstration benefit renewable mini-grids. Notable industry groups
project using four different renewable energy sources include the EMergy Alliance, SunSpec, SGIP, GridSmart,
(Sumitomo Electric Industries, Ltd., 2015). A successful SG-CG, KSGA, ISGF and JSCA.
venture capitalist investment has been done by Aquion
Energy, a company that has managed to secure private
financing for developing an AHI battery. Investor-owned 7.3 The role of the non-profit
utilities already have been considering the use of mini- sector and academia
grids in their territories and should continue including
renewable mini-grids in their options planning. The non-profit foundation sector, such as the Rockefeller
Foundation or the Bill & Melinda Gates Foundation,
is co-ordinating large pools of money to drive
Deploy mini-grids
innovation. Multilaterals can fund pilots based on proven
It is important to continue to deploy mini-grids even if they technologies deployed in new areas. Furthermore there
do not derive a majority of their energy from renewable are a series of cross-cutting, multi-level, multilateral
sources today. Renewable mini-grids will increase in cost- efforts of institutions engaging together to advance
effectiveness as storage costs decline, but there is a need renewable mini-grids. The Clean Energy Mini-grids High-
for the controls and integration with intelligent end-uses Impact Opportunity (CEMG HIO) from the Sustainable
today. Much of the necessary work is in bringing existing Energy for All (SE4All) initiative is a key high-level
technologies together in a sensible package (Zimmermann, global promoter of off-grid renewable mini-grids, with
2015). Investment in cost-effective mini-grid projects today over 140 registered members (Wiemann and Lecoque,
and concomitant improvements in CMM and consumption 2015).
technologies will form a foundation for renewable mini-
grids in the next decade. Universities and academic institutions can undertake
the fundamental research necessary for renewable mini-
grids. Academia can support setting research agendas
Transfer technology into the renewable
that prioritise the technologies that close the gap for
mini-grid market renewable mini-grids. For example, research institutes
Much of the intellectual property identified and required need to co-operate and elaborate more demanding
for renewable mini-grids already exists in other markets. mini-grid experiments to submit technologies to harsh
For example, car companies are investing heavily in real-life conditions (Tao et al., 2011). Researchers play an
storage technologies for transportation. There is a important role in making data publicly available and in
role for technology holders, such as car companies, supporting start-ups out of their laboratories.
8 CONCLUSIONS
Innovation in renewable mini-grids will span many technologies in other functionalities. Both research and
functionalities and technologies. Planning and design pilot projects are critical to continuing to move forward
of renewable mini-grids will be more flexible and will CMM technologies, and will require support from policy
be built upon ever-improving data for the underlying makers and developers.
energy resources available in each area. Enhancements
in CMM technologies are expected to include simplified In addition to the core storage technologies, a research
interconnection of equipment, access to more flexible focus should be on non-LIB storage as well. Longer-
and robust metering technologies, and more intelligent term options include organic flow batteries that are
use of generation and storage. The renewable mini-grids more environmentally friendly, requiring no rare earths
of the future will be built on the back of lower-cost or expensive materials. Novel storage technologies,
storage chemistries that are more resilient and safer including advanced lead-acid, flywheels and even less-
than today’s. There also will be new long-term storage commercial technologies may yet prove disruptive (or
technologies to spread the energy available from complementary) to LIBs. The ability to store renewable
variable renewables to periods of high demand. energy for long periods in liquid (or possibly gaseous)
form will further enable high penetrations of renewable
In addition, there will be affordable storage options energy throughout the year.
to handle high power demands. Power conversion
technologies will easily interconnect with other Power conversion technology costs will decrease, due
equipment and will come bundled with capabilities in large part to commercial scale-up and improved
to easily integrate and manage the flow of electricity. manufacturing. In particular, the dual-mode converters
Interconnection with the main grid will be straightforward that are critical to renewable mini-grids will benefit
and, after the lessons learned from pilots today and in from increased usage in the market, further driving
the near future, will be built upon proven approaches renewable mini-grids. New designs, including GaN,
for integrating with the utility. Generation technologies SiC and eventually graphite will play a growing role.
have seen impressive cost breakthroughs (particularly Bundling of features (even crossing over into the CMM
solar PV), and these trends are expected to continue. functionality) will further make distributed renewable
Generation technologies will achieve higher efficiency mini-grids more user-friendly, and more robust across a
(i.e., better resource capture), be more robust and have wide range of environments. The technologies also will
lower maintenance needs. gain wider acceptance for interconnecting with utilities,
further driving roll-out even in interconnected areas.
Developments in lithium-ion batteries are among
the most promising technologies for lowering the Energy-consuming devices will continue to increase in
barriers to wide-scale use of renewable mini-grids. efficiency, further reducing the cost of energy services
Advancements in CMM will yield smarter, more modular in renewable mini-grids. Much of this will come from
and scalable mini-girds, further driving deployment end-uses in the larger main grid, although the flexibility
of the technology. The CMM will be bundled into the of new smarter appliances will be even more critical
converters. Advancements in resource modelling, load in renewable mini-grids. Generation technologies
prediction and customised planning tools will enable will continue to benefit from economies of scale
decision makers to make smarter planning decisions. through wider use in the main grid. Renewable energy
Low-cost generation (in particular solar PV), coupled technologies are expected to become cheaper and even
with highly efficient, flexible appliances and energy more environmentally friendly.
uses, will complete the mini-grid of the future.
None of the discussed innovations are possible without
CMM technologies are the brain of renewable mini-grids, the adequate support of policy makers, the private
and smarter algorithms will maximise the capabilities of sector and researchers in particular. There is much
need for funding of fundamental research that is able (e.g., SHS) and grid extension. However, renewable
to generate new concept ideas. Fundamental research mini-grids provide a smart alternative. Initially these
provides the stepping stones for breakthroughs for developments will occur in remote areas and isolated
the next couple of decades. Funding from the public communities, or to power heavy industry. From the
and private sector is critical to support these research interconnected side, the growth will likely be on
activities, both jointly and independently. Additionally, industries and campuses with high reliability needs (e.g.,
policy makers need to promote regulations and access campuses, data centres and high-end manufacturing).
to information. Finally, policy makers play a critical role The focus in these areas will be on resiliency, but
in providing market policies that can facilitate the uptake renewable mini-grids will provide the backbone for
of innovations in their final stages of development and increased renewables as storage and generation
need for support prior to commercialisation. Private technologies drop in cost.
sector investors are expected to continue to play a major
role in funding research activities. Also, private sector Although the world is moving towards them, mini-
investors are key for moving forward concept ideas into grids that are based mainly on renewable energy are
commercial products and for eventually deploying new likely to be more prevalent in the more-distant future,
renewable mini-grid projects. What is more, the private as technology and policy evolve to understand and
sector needs to be largely involved in the development accept them. Technological innovations are continuing
of technology standards through industry groups that to occur in all six of the core functionalities. In the next
collaborate with the public sector and universities. two decades, these will drive an increase of renewable
energy penetration in mini-grids and increase their
The renewable mini-grid sector is still in its infancy. It deployment by making them an increasingly attractive
faces challenges from lack of acceptance from utilities, alternative to traditional centralised grid planning and
and perceived competition from stand-alone systems SHS.
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ANNEX 1:
Detailed drivers for renewable mini-grids
This Annex describes innovation drivers across both greater community choice, as well as those that
phases of technology innovation, through political, provide basic human rights. Social drivers can include
economic, social, environmental and technological a community’s preferences for renewable technologies,
considerations. as well as human rights and development-focused
initiatives to create more sustainable, more reliant
Political and institutional drivers impact market and electricity. Social factors drive markets and innovation by
innovation in both the public and private sectors. highlighting the humanitarian goal of improving energy
These drivers help to establish policy goals, mandates, access in underserved areas. Communities, businesses
public initiatives, support mechanisms and regulations. and organisations that strive for more-sustainable
Examples include providing access to energy, increasing energy alternatives are also driving deployment and
the use of renewables, pushing R&D and piloting innovation.
cutting-edge projects. For example, in many Caribbean
islands, government policies to lower the cost of energy Environmental considerations are important for
are driving the commercial scale-up of renewable deployment and innovation, because renewable
energy for the grids of small islands. This illustrates that mini-grids provide one of the least environmentally
key drivers include establishing mandates and goals damaging options for producing reliable power. They
to encourage applied technological innovation. Other enable the use of renewables at high penetration rates,
political drivers include defined funding sources for which in turn provide a pathway for the transformation
renewable mini-grid technologies, and co-ordinated of an electrical sector to derive a majority of energy
research initiatives in these technologies. Drivers do not from renewable sources. They also reduce reliance on
always have to be political and can manifest in unusual fossil fuel as an energy source, providing an alternative
ways. For example, in Haiti, unevenly enforced and to the biggest environmental challenge for stationary
unclear regulations are encouraging non-governmental electricity. Renewable mini-grids have been used in
institutions, such as NRECA and EarthSpark, to use green marketing programmes and as a way to provide
mini-grids to provide energy access. However, these power while addressing environmental concerns
projects are early-stage pilots and are best defined as generally and, in particular, in environmentally sensitive
technology venturing. areas.
Economic drivers involve economic and financial tools Technological drivers include those that lower costs,
to increase the funding available for and quality of that improve electrical services, and that address the
renewable mini-grids. These tools include encouraging need to facilitate the integration of renewables as well
market-based competition, supplying loans, creating as the need to bolster the main grid infrastructure. The
funds and providing grants to encourage technological technological drivers for improved electrical services
development. Specific grant funding for research can are the increasing demand for reliable, low-cost power
help to advanced earlier-stage innovation and primary in remote areas, the need to back up the grid from
research. A critical economic driver is to provide an disruptions, and the resilience to recover from disruptive
alternative to traditional energy supplies and to diversify events such as storms and hurricanes. Renewable mini-
the energy mix. This is particularly important in areas grids also are increasingly being used to integrate
with limited and expensive options. For off-grid areas, renewables into grids.
renewable mini-grids provide an economic alternative
to diesel generators. For on-grid areas they provide an In subsequent sections, this report will describe the key
alternative to utility monopolies and provide resilience. technological innovations needed to ensure that the
technology drivers can push the technology forward
Social drivers are those that benefit individuals and and increase deployment across all renewable mini-grid
communities through improved energy options and markets.
Political drivers
Table 34: Political and institutional drivers for renewable mini-grid deployment and innovation
Political and institutional: Deploy Innovate Example AB AF IC ILI

Basic energy access mandate In remote, rural areas worldwide
by government or other solar-based mini-grids are being
x used increasingly to meet local, x x
national and regional access
goals.
Electrification today The Les Anglais mini-grid in Haiti
before potential future is designed to connect with the
grid extension is feasible: x Electricité d’Haïti utility grid if grid x x
helps to make a community extension initiatives reach the
“grid-ready” community.
Government-sponsored The US DOE SunShot programme
programmes, political established a USD 1/W installed
priorities (funding to spur cost goal for utility-scale PV for
commercial investment in x x 2020, which drove manufacturers x x x x
technology) and installers to push for lower
costs. The low cost of solar has
benefited renewable mini-grids.
Grid security and Massachusetts’ Community
independence policy goals; Clean Energy Resiliency Initiative
demand for local control of x x explored the potential for clean x x
generation energy mini-grids to provide grid
resiliency.
Government regulations Boulder, Colorado seeks to create
that mandate renewable a municipal utility to increase and
energy penetration at be able to mandate an increased
the community level use of renewable energy.
(e.g., renewable portfolio x x x
standards)
Environmental regulations
and requirements
Public funding, research The “Microgrid Research,
funds and grants for mini- Development, and System
grids (funding for all phases Design” Funding Opportunity
of fundamental technological Announcement from the US DOE
research) x x will encourage renewable mini- x x x x
grid innovation for resiliency.
California Energy Commission
funds are being used to provide
innovation on DC mini-grids.
Source: Aggarwal and Mohanty, 2015; Ahlborg and Hammar, 2014; Blum et al., 2015; Bourgeois et al., 2013; Brandt, 2015; City of Boulder
Colorado, n.d.; Deshmukh, 2014; Executive Office of Energy and Environmental Affairs, 2014; Gershenson et al., 2015; Komor and Molnar, 2015;
Kullingsjö, 2011; Kumar Sahu, 2015; IEA, 2012a; Rolland and Glania, 2011; Romankiewicz, 2014; Tenenbaum et al., 2014; US DOE, 2014, 2013b)
Economic drivers
Table 35: Economic drivers for renewable mini-grid deployment and innovation
Economic: Deploy Innovate Example AB AF IC ILI

Ability to be designed
to improve financial
sustainability through
reduced operational x x x x x
costs, by spending more
initially on renewables
and storage
Ability to be used
to improve green
marketing and to
x x
comply with corporate
social responsibility
goals
Improve access to
capital and loans for
x x x x x
deploying renewables
technologies
Low-cost financing and
low-interest loans to
x x x x x
overcome high upfront
costs
Venture capitalist Multiple investments by venture
investment in a capitalists in new improved battery
technology x x technology start-ups. x x x x
Stonepeak Partners USD 250 million
finance facility for mini-grids.
National or international Connecticut Green Bank Drives Energy
grants and subsidies for Resiliency Investment.
technological innovation
Mini-grids for a critical facilities fund in
and research
New York State.
x x Investment tax credits for renewable x x x
energy in the United States for solar,
which are applicable to renewable
mini-grids, provide funding to deploy
near-commercial renewable mini-grid
technologies.
Demand for lower-cost
energy supplies than are x x x x x x
locally available
Rising grid-energy costs
and expensive grid x x x x
support
Source: Aggarwal and Mohanty, 2015; Ahlborg and Hammar, 2014; Bourgeois et al., 2013; CE Delft, 2012; Deshmukh, 2014; Fehrenbacher, 2013;
Gershenson et al., 2015; Karabiber et al., 2013; Komor and Molnar, 2015; Kullingsjö, 2011; Kumar Sahu, 2015; NYSERDA, 2014; Rolland and Glania,
2011; Romankiewicz, 2014; Sherman, 2015; Tenenbaum et al., 2014; Wesoff, 2015
Social drivers
Table 36: Social drivers for renewable mini-grid deployment and innovation
Social: Deploy Innovate Example AB AF IC ILI

Development goals, including electricity
for productive uses, income-generating
activities, social development, improved x x x
living conditions, improved health care, and
education
Rising demand from communities and
industrial complexes that want reliable, x x x
resilient sustainable service
Philanthropic initiatives from charities, NGOs,
religious and social organisations to improve x x x
energy access in underserved communities
Consumer and community preferences for
x x x
renewable energy over other technologies
Improved alignment of technology to meet Innovation
evolving social demands in metering
equipment to
provide demand-
x x side management x x
and feedback to
users can improve
tariff collection
rates.
Source: Aggarwal and Mohanty, 2015; Gershenson et al., 2015; Graillot et al., 2012; Komor and Molnar, 2015; Kullingsjö, 2011; Rolland and Glania,
2011; Romankiewicz, 2014
Environmental drivers
Table 37: Environmental drivers for renewable mini-grid deployment and innovation
Environmental: Deploy Innovate Example AB AF IC ILI

Carbon credits and
emission trading x x x x x
schemes
Green marketing
and corporate social x x x
responsibility
Reduced reliance on “Zero fossil fuels for Galapagos” Initiative
fossil fuels x x to deploy mini-grids in the Galapagos x x x x
Islands.
Environmental Aquion Energy has created a battery
concerns so environmentally friendly that it is
x x advertised as “the battery you can eat”, x x x x
although it is not recommended for
actual consumption.
Improved integration of Hawaii and California are exploring the
distributed renewable use of mini-grids to mitigate the impacts
x x x x x x
energy of variable PV generation on their
distribution grids.
Source: Karabiber et al., 2013; Rolland and Glania, 2011; Romankiewicz, 2014
Technological drivers
Table 38: Technological drivers for renewable mini-grid deployment and innovation
Technological: Deploy Innovate Example AB AF IC ILI

Improve service Smart Power Infrastructure Demonstration
quality and reliability for Energy Reliability and Security, USA
x x x x
of electricity supply (SPIDERS).
of main grid
Provide or improve GSM remote monitoring is used in rural
service in off-grid areas of Africa to track service and energy
areas x x usage. The information gathered is used x x
to determine maintenance service and to
facilitate a pay-as-you-go programme.
Improved integration The island of Oahu, Hawaii has deployed
of distributed significant amounts of solar PV on its
generation distribution grid. However, Oahu is
x x x x
technologies now beginning to retrofit the grid with
renewable mini-grids to prevent technical
problems on the feeders.
Improved resilience Distributed generation can provide reliable
through diversity of electricity during hazardous events. If
supply residents of the north-eastern United
States during 2012’s Hurricane Sandy had
renewable mini-grids, they would have
x x x x
been able to use their rooftop PV to power
local homes and businesses. However,
few residents had renewable mini-grid
technologies, and they were unable to use
their PV assets.
Utilities’ need for Australia has one of the largest renewable
grid optimisation for energy potentials in the world. Utilities
congestion relief and servicing remote regions of the country
ancillary services currently supply about 5 GW of energy to
remote locations in the outback with liquid
fuel and gas power plants. As a result of
x x new technologies such as improved energy x x
storage, the falling cost of renewable
energy technology, the rise in fuel costs
and the proven reliability of renewable
mini-grids, these remote servicing utilities
are focusing on renewable-based grid
expansions.
Technological The CERTS created a Microgrid Laboratory
breakthroughs Test Bed in 2009 to ease the integration of
from research small energy resources into a microgrid.
and development, x x x x x
The sharp decline in PV prices made solar
to improve
the preferred technology for renewable
performance and
mini-grids in the past five years.
lower costs
Source: Aggarwal and Mohanty, 2015; Ahlborg and Hammar, 2014; IEEE, 2014; Deshmukh, 2014; Eto et al., 2009; Gershenson et al., 2015; IEA-
ETSAP and IRENA, 2015a; IRENA, 2012e; Karabiber et al., 2013; Komor and Molnar, 2015; Kullingsjö, 2011; Kumar Sahu, 2015; Nique and Opala,
2014; Rolland and Glania, 2011; Romankiewicz, 2014; Waugaman, 2014; Wilkins, 2010; Zhu et al., 2015)
ANNEX 2:
Barriers to renewable mini-grid innovation
Barriers to innovation in this Annex are grouped by Social barriers in most cases relate to the perception of
barrier type (political and institutional, economic, social, renewable mini-grids as being unsuitable for providing
environmental and technological). In contrast to drivers, access to modern, quality and reliable energy services.
barriers are more likely to be split across whether the Social barriers can clearly limit the deployment of
core goal is improved electrification in autonomous renewable mini-grids, but on the other hand can be the
regions (AB, AF type) or improved reliability in reason for promoting further innovations to address
interconnected mini-grids (IC, ILI type). technological concerns. In addition, the diffusion of
know-how, experiences, case studies and pilot projects
Many of the political barriers are related to the can provide policy makers and communities with better
inertia from the historical use of traditional energy embracing of the technologies.
generation technologies: subsidies for diesel fuel or
the assumption of grid extension in remote areas; Even if renewable mini-grids seek to address
in areas already connected to the grid there is an environmental concerns and increase the use of
expectation of most power coming from a centralised renewable energy technologies, there are still some
grid. There is a need to rethink traditional regulation barriers and considerations. In particular, as with any
focused in protecting consumers from utilities, towards other technology, the life cycle and impacts (even if
a framework where renewable mini-grids allow energy limited) should be assessed and diminished as much as
consumers to participate in the energy market. In possible.
addition, there is limited regulation to adopt quality
standards specifically for renewable mini-grids. The Finally, technological barriers are clear aspects
development of the IEC 62257-1 (IEC, 2013) standard of innovation challenges that must be addressed.
has been useful for autonomous renewable mini-grids, Technological barriers are clear opportunities for
but its access, adoption by countries and further use is improvements and innovations that are discussed in
required. Interconnected mini-grids should comply with Section 5. The needs for improved controls and further
enacted quality standards and country grid codes, but incorporation of variable renewables in generation are
there is still need to further develop specific codes and crucial aspects to be dealt with.
standards for their interconnection and operability.
Identifying a range of barriers for market deployment
Economic barriers limit technology venturing by limiting provides transparency on the obstacles that may be
the funding available for transitioning to commercial present during the planning, implementation and/
scale-up. In commercial scale-up, these barriers manifest or operational phases. These barriers also are known
to limit cost-effectiveness and increase investment to hinder innovation, but at the same time represent
risk. These barriers may discourage researchers from opportunities for innovations themselves to address
pursuing research and investors from deploying such hurdles. It is necessary for policy makers,
renewable mini-grids. Research funds are frequently investors, communities and developers to address the
cut, in particular those geared towards new concept aforementioned barriers to mitigate and potentially
ideas. Financing continues to be a barrier, with costs eliminate these market obstacles. Despite the
expected to decrease as the use of renewable mini-grids challenges created by these barriers, the overall benefits
expands, plus further recognition of non-economic of renewable mini-grid installations have proven to far
added-value of renewable mini-grids. outweigh these hurdles.
Political barriers
Table 39: Political and institutional barriers to renewable mini-grid deployment and innovation
AB AF IC ILI
Uncertain government policy, laws and regulations specific to renewable mini-grids
Lack of effective institutional arrangements
Regulations based on traditional systems applied to mini-grids
Limited political leverage/clout in remote areas
Lobbying from non-renewable energy sectors (e.g., natural gas)
Political requirements that all communities
receive equivalent technological development
Political
Government adherence to funds from top-down
international organisations (e.g., widespread use
of uniform stand-alone solar home systems)
Subsidies for diesel and petroleum fuels
Utility resistance to mini-grids
Limited availability and access to technology and quality standards for renewable mini-grid
applications
Source: Aggarwal and Mohanty, 2015; Ahlborg and Hammar, 2014; Blum et al., 2015; Bourgeois et al., 2013; Brandt, 2015; City of Boulder Colorado, n.d.;
Deshmukh, 2014; Executive Office of Energy and Environmental Affairs, 2014; IEA-ETSAP and IRENA, 2015a; IRENA, 2012e; Komor and Molnar, 2015;
Kullingsjö, 2011; Kumar Sahu, 2015; Rolland and Glania, 2011; Romankiewicz, 2014; Tenenbaum et al., 2014; US DOE, 2014, 2013b); key expert interviews
Economic barriers
Table 40: Economic barriers to renewable mini-grid deployment and innovation
AB AF IC ILI
Investment risk from economic and political instability, including corruption, oligarchic
democracies, and/or disruptive regime changes
Limited access to financing and funding R&D for growth technologies
Low ability to pay in rural remote regions coupled
with inherently higher energy costs
Lack of subsidies and financial incentives to foster the technology to mature commercial status
High start-up and high capital costs compared to other options
Limited or no private sector involvement

Low utility-grid tariffs and tariffs that
subsidise environmental costs (i.e., ignored
Economic externality costs)
Multilateral bank and government technology selection that focuses mainly/exclusively on
lowest-cost solutions (e.g., use of grid extension even if in some cases environmental impacts can
be larger, or use of SHS which will provide limited basic access)
Parody of: Investments can be “low” in
comparison to major infrastructure projects
of priority interest to multilateral banks or
governments; or prefer other lower-cost solutions
Government budget is mainly geared/focused
towards technology innovation in military
activities/applications (OECD countries R&D
in energy represents 1/6 of budget for R&D in
defence)
Source: Aggarwal and Mohanty, 2015; Ahlborg and Hammar, 2014; Bourgeois et al., 2013; CE Delft, 2012; Deshmukh, 2014; Fehrenbacher, 2013;
Gershenson et al., 2015; Karabiber et al., 2013; Komor and Molnar, 2015; Kullingsjö, 2011; Kumar Sahu, 2015; NYSERDA, 2014; IEA, 2013a; Rolland and
Glania, 2011; Romankiewicz, 2014; Sherman, 2015; Tenenbaum et al., 2014; Wesoff, 2015)
Social barriers
Table 41: Key social barriers to renewable mini-grid market deployment
AB AF IC ILI
Lack of international, national and local legitimacy (e.g., residents may be distrustful of new
technologies or projects that do not appear to them to meet their needs)
Limited local demand for electricity (e.g., users
that have only very basic energy needs such as
lighting and mobile phone charging)
Unsuitable aid/grant criteria for locality
Conflicts with local authority structures (e.g., local industry, churches, communities, etc.).
Resistance to cultural change (i.e., loss of
indigenous cultures)
Lack of involvement from local communities
Insufficiently concentrated population/end-uses
Perception that renewable mini-grids are inferior
Social to the main grid
Concerns with long-term sustainability of
renewable mini-grid projects. Perception that
projects are not viable in the long term; very few
examples are present and operating.
Limited access/availability of technical expertise
Top-down replication of projects in different
regional, country or local settings without
consideration of local needs
Unwillingness to visit/work in remote areas, and/
or condescending approach
Opposition to local generation: Not In My Backyard (NIMBY)
Lack of technical know-how in multilateral and financing institutions or ”copy-paste syndrome”
Source: Aggarwal and Mohanty, 2015; Gershenson et al., 2015; Graillot et al., 2012; Komor and Molnar, 2015; Kullingsjö, 2011; Rolland and Glania,
2011; Romankiewicz, 2014
Environmental barriers
Table 42: Environmental barriers to renewable mini-grid deployment and innovation
AB AF IC ILI
Lack of programmes for electronic waste
Local air quality restrictions for combustion-
driven generators (back-up and biomass)
Even if environmentally friendly technologies are been promoted, full product life cycle
Environmental should continue to be addressed – limits of resources
Can power environmentally detrimental
activities such as mining, oil drilling and
other high-impact activities
Lack of recognition of environmental benefits of renewable mini-grids
Source: Karabiber et al., 2013; Rolland and Glania, 2011; Romankiewicz, 2014
Technological barriers
Table 43: Technological barriers to renewable mini-grid deployment and innovation
AB AF IC ILI
Interconnection, interoperability
Resource planning
System operations
Technology not specific
to low-cost (bottom-of-
Technological
pyramid) design
Lack of modularity
Low capacity factors of variable renewable energy technologies
Uncertainty in the face of possible future
central grid extension
Source: Aggarwal and Mohanty, 2015; Ahlborg and Hammar, 2014; IEEE, 2014; Blum et al., 2015; Deshmukh, 2014; Gershenson et al., 2015; IEA-
ETSAP and IRENA, 2015a; IRENA, 2012e; Karabiber et al., 2013; Komor and Molnar, 2015; Kullingsjö, 2011; Kumar Sahu, 2015; Nique and Opala,
2014; NREL et al., 2014; Rolland and Glania, 2011; Romankiewicz, 2014, 2014; Waugaman, 2014; Wilkins, 2010; Zhu et al., 2015)
ANNEX 3:
Worldwide deployment and stakeholders
Examples of renewable mini-grid deployment by region are depicted in Table 44:
Table 44: Examples of renewable mini-grid projects worldwide
Region Examples
US and Canada PV-solar in California (e.g., Borrego Springs micro-grid); wind-hydro in Kodiak, Alaska;
solar in Olney, Maryland; PV-wind-diesel at Oncor’s System Operating Services Facility in
Texas; solar-natural gas at Niobrara Energy Park, Colorado (still in development); Illinois
Institute of Technology Microgrid; University of California San Diego (renewable energy
increasing, but based primarily on combined heat and power)
Mexico, Central Small hydro in Nicaragua and Guatemala; PV mini-grids in Mexico; microgrids in oil
America and the refineries; Necker Island and Bonaire; biogas in Tuffet, Haiti
Caribbean
South America Large PV-diesel in Cobija and El Espino, Bolivia; large PV-diesel in Santa Cruz, Ecuador;
solar-diesel in Padrecocha, Peru
Europe Wind-solar-biomass in Wildpoldsried, Germany; wind-solar in Canary Islands; wind-PV in

Kythnos Island in Greece; wind-diesel-hydro in El Hierro, Spain
North Africa PV in Morocco; solar in Tunisia
Sub-Saharan PV in Cape Verde and Volta Region in Ghana; PV-diesel in Guinea Bissau and Chad;
Africa PV-diesel-biomass in Kenya and Tanzania
North and Central Wind in Murmansk Oblast
Asia
South and East Small hydro in Nepal; PV in Malaysia, Indonesia and India; PV-wind-diesel in China (e.g.,
Asia on the islands of Nanji, Dawanshan and Dong’ao); biomass gasifiers in India
Middle East PV-diesel in West Bank, Palestine; PV in Egypt
Oceania Solar-diesel in Daly River; wind-solar-biodiesel on King Island
Antarctica Antarctic Research Station Princess Elisabeth
Source: Briganti et al., 2012; Cheek et al., 2011; Deshmukh, 2014; Espinosa, 2004; Estrada García et al., 2013; Hatziargyriou et al., 2007; Rolland
and Glania, 2011; Taouil et al., 2014; Tenenbaum et al., 2014; Thirumurthy et al., 2012)
Stakeholder relations
Stakeholders include private developers, public companies, consultancy and engineering companies, multilaterals,
NGOs, governments, researchers and developers, manufacturers, think tanks, universities and investors. Each plays
different roles during the innovation life cycle, as summarised in Table 45:
Table 45: Roles of key stakeholders in mini-grids
Private developer
Public company
Manu-facturer
Govern-ment
Consultancy/
Multi-lateral
R&D centres
Engineering
Uni-versity
Think tank
In-vestor
NGO
Basic R&D xx xxx x xxx
Applied R&D x x x xx xxx x xxx x
Demonstration x x x xx x x x xx x xx x
Market development x x x xxx xx xx x x xx
Market deployment xxx xxx x x x x x x xxx
KEY: xxx = critical driving role; xx = key participant; x = important stakeholder
Governments, research institutions and universities are the key players for initial technology innovation. Once
technological innovations have been proven in laboratories, then manufacturers, university incubators, multilateral
organisations, and governments will play an important role in demonstrating the feasibility of them by testing
laboratory concepts in real-life conditions. Investors and the public and private sectors will further invest in the final
stages of product development and towards its commercialisation to finally deploy the technology. NGOs and think
tanks are crucial for bridging technological capabilities due to innovation and the social needs for implementation
in communities.
126
ANNEX 4:
Detailed patent review
This Annex provides a series of patent reviews. The European Patent Office (EPO) search engine, Espacenet,
and the Global Patent Index provide searchable databases of patents from more than 90 countries. Nearly 300
Cooperative Patent Classification (CPC) codes were researched that reflect specific groups, subgroups, classes or
subclasses of research that will impact renewable mini-grids. The CPC codes were selected from IRENA’s INSPIRE
patent tool (IRENA, 2015g). These data on patent applications filed, which cover the period from 2010 to 2014,
provide insights on which renewable mini-grid technologies are being funded, as well as general interest levels.
The results of these searches show trends towards commercialisation for most of the core technologies. The
general trend is positive, and interest in their potential to transform the energy sector has continued to grow.
Plan and Design
The plan-and-design patent review focused on tools for modelling and simulation. The patent offices that have filed
the most patent applications from 2010 to 2014 for modelling and simulation technologies were those of China,
with over 540 patent applications filed, followed by the United States, the World Intellectual Property Organisation
(WIPO) for international patents, Japan, EPO, Canada, the Republic of Korea, Germany, Australia and Chinese Taipei
(EPO, 2015a; EPO, 2015b). The leading patent-generating companies within the last five years are listed in Figure 24:
Figure 24: Top 10 companies for CMM modelling and simulation patents filed from 2010 to 2014
Sharp KK
Sanyo Electric Co
Fujifilm Corp
Company
Merck Patent GmbH

LG Innotek Co Ltd
LG Electronics Inc
DuPont
Kyocera Corp
Mitsubishi Electric Corp
IBM
0 200 400 600 800 1000 1200 1400 1600 1800

# of patents
127
There has been a consistent rise in patents for modelling and simulation technologies in the past five years, as shown
in Figure 25:
Figure 25: Number of patents for modelling and simulation technologies filed from 2010 to 2014
350
300
250
200
150
100
50
0
2010 2011 2012 2013
Years
CMM
The country where the most patents were filed from 2010 to 2014 was China, with almost 12 000 patents filed. The
United States trailed with just over 11 000, followed by Japan, Germany, the Republic of Korea, Chinese Taipei, France
and the United Kingdom. Significant numbers of patents also were registered internationally through WIPO, and for
all of Europe through EPO. Corporations holding the most number of patents for the 2010 to 2014 period are listed
in Figure 26:
Figure 26: Top 10 companies for all CMM technology patents filed from 2010 to 2014
General Electric
Siemens AG
Vestas Wind Systems AS
Company
Mitsubishi Heavy Industry Ltd

Wobben Properties GMBH
Samsung Heavy Industry
Bosch GMBH
Gamesa Innovation Tech SL
Guodian United Power Tech Co
Sinovel Wind Group Company Ltd
0 500 1000 1500 2000 2500 3000

patents
# of
128
Patent applications for data-communication technologies have followed the general trend of increases except for in
2014, during which there was a significant deviation in the trend. This was most likely because of patents pending
approval. Mini-grid management technologies and measurement technologies saw a consistent increase. There
was not a major increase in innovations in intelligent-storage-control equipment technologies, and for user-meter
technologies there was a drop (see Figure 27). Below is a more detailed review of patent trends in CMM technologies.
Figure 27: Number of patents for CMM technologies filed from 2010 to 2013
Data comm Intelligent storage control Mini-grid management User meter Measurements
2000
1800
1600
1400
1200
1000
800
600
400
200
0
2010 2010 2010 2010
Years
Data communication
The patent offices that filed the most patents from 2010 to 2014 for data communication technologies were those
of China, with over 2 200 patent applications filed, followed by the United Sates, WIPO, EPO, Japan, the Republic of
Korea, Canada, the United Kingdom, Australia and Germany (EPO, 2015a; EPO, 2015b). See Figure 28:
Figure 28: Top 10 countries for CMM data communication patents filed from 2010 to 2014
Europe
International
Patents:
200
500
1,000
2,000
129
Corporate leaders in holding patents in that period included State Grid Corporation of China and General Electric,
each with approximately 340 patent applications filed. They are followed by Itron Inc., Panasonic Corp., Siemens
AG, Sony Corporation, LG Electronics Inc., Shanghai Municipal Electric Power, Jaibin Chin and Elster Solutions LLC.
See Figure 29:
Figure 29: Top 10 companies for CMM data communication patents filed from 2010 to 2014
Voith Patent GMBH…

Tidal Generation Ltd
Alstom Hydro France
OpenHydro IP Ltd
Company
Tianjin Tianfa Heavy Machinery

Atlantis Resources Corporation PTE
Alstom Renewable Technologies
State Grid Corporation China
Rolls Royce PLC
Toshiba Corporation
0 50 100 150 200 250 300
# of patents
Intelligent storage control

The patent office that filed the most applications from 2010 to 2014 was China’s, with approximately 730 applications
filed, followed by those of the United States, Japan, WIPO, EPO, the Republic of Korea, the United Kingdom, Chinese
Taipei, Canada and Spain (EPO, 2015a; EPO, 2015b). See Figure 30:
Figure 30: Top 10 countries for CMM intelligent storage control patents filed from 2010 to 2014
Europe
International
Patents:
20
100
500
1,000
130
The corporations that held the most number of patents in the period included Samsung SDI Company Limited with
approximately 42 patent applications filed, followed by Eaton Corporation, Hon Hai Precision Industry Company
Ltd., Kyocera Corp., Sanyo Electric Co., State Grid Corporation of China, BAE Systems Control Inc., Huawei Tech Co.,
General Electric and Shimizu Construction Company Ltd. See Figure 31:
Figure 31: Top 10 companies for CMM intelligent storage control patents filed from 2010 to 2014
Xyleco Inc…
Novozymes AS
Lanzatech New Zealand Ltd
IFP Energies Nouvelles
Company
Novozymes North america Inc

Codexis Inc
Du Pont
Shell Int Research
Kior Inc
Danisco US Inc
0 100 200 300 400 500 600
Number of
P
atent Innovations
Measurements
The patent offices that filed the most patent applications from 2010 to 2014 were those of the United States, with
approximately 250 patent applications filed, WIPO, which received almost 150 patents, China, EPO, Japan, Canada,
Australia, the Republic of Korea, Mexico and the Russian Federation (EPO, 2015a; EPO, 2015b). See Figure 32:
Figure 32: Top 10 countries for CMM measurement patents filed from 2010 to 2014
Europe
International
Patents:
20
50
100
200
500
131
Corporations with the most number of patents in the period included but were not limited to General Electric, with
approximately 75 patents filed, followed by Accenture Global Services Ltd., Schweitzer Engineering Lab Inc., State
Grid Corporation of China, Spirae Inc., Toshiba, Sensus USA Inc., Corinex Communications Corporation, Schneider
Electric Industry and Siemens AG. See Figure 33:
Figure 33: Top 10 companies for CMM measurements patents filed from 2010 to 2014
LG Chemical Ltd.
Samsung SDI Co. Ltd.

Toyota Motor Company Ltd.
Electrochemical
Companies
Sanyo Electric Co
Panasonic Corp.
Toyota Motor Corporation
Sony Corporation
Nissan Motor
Bosch GMBH
Semiconductor Energy Lab
0 500 1000 1500 2000 2500 3000

Number of Patent Innovations (2010-2014)
Mini-grid management
The patent offices that filed the most patents from 2010 to 2014 for mini-grid management technologies were those
of the United States, where more than 820 patent applications were filed, followed by those of China, WIPO, Japan,
EPO, Chinese Taipei, the Republic of Korea, Germany, the United Kingdom and Australia (EPO, 2015a; EPO, 2015b).
See Figure 34:
Figure 34: Top 10 countries for CMM mini-grid management patents filed from 2010 to 2014
Europe
International
Patents:
100
200
500
1,000
132
Major corporate patent holders in the period included but were not limited to Mitsubishi Electric Corporation, with
85 patent applications filed, followed by Fuji Electric Company Ltd., Murata Manufacturing Co., Samsung Electro-
Mechanics, Bosch, Huawei Tech Co., Fujitsu Limited, System General Corporation, Siemens AG and the Panasonic
Corporation. See Figure 35:
Figure 35: Top 10 companies for CMM mini-grid management patents filed from 2010 to 2014
Bosch GMBH
Peugeot Citreon Automobiles
Eaton Corp

General Electric
Companies

Mechanical
Lightsail Energy Inc.

General Compression Inc
Technoboost

Siemens AG
Troy McBride

Sandvik Mining Construction

0 20 40 60 80 100 120

User meters
The patent offices that filed the most patents from 2010 to 2014 were those of the United States, with approximately
300 patent applications filed, WIPO, which received more than 130 international patents, EPO, Canada, Australia,
Japan, China, the United Kingdom, New Zealand and Mexico (EPO, 2015a; EPO, 2015b). See Figure 36:
Figure 36: Top 10 countries for CMM user meter patents filed from 2010 to 2014
Europe
International
Patents:
20
50
100
500
133
Major corporate patent holders in the period included but were not limited to General Electric, with approximately
116 patent applications filed, Itron Inc., Elster Solutions LLC, Silver Spring Networks Inc., LG Electronics Inc., Panasonic
Corp., Nagravision, Toshiba Research Europe Ltd., Hoonbong Lee and Yanghwan Kim. See Figure 37:
Figure 37: Top 10 companies for CMM user meter patents filed from 2010 to 2014
Denso Corp.
Panasonic Corp.

Siemens AG
Companies
Tai-Her Yang

Thermal
BASF SE
Toyota Central
Res
Dev
Commissaria Energie
Atomique

Dow Global Technologies

LLC
Isentropic Ltd.
Skanska Sverige
0 10 20 30 40 50 60 70 80 90 100
Store
The patent office that filed the most patents from 2010 to 2014 for storage was that of China, with more than 30 000
patents filed in the period. It was followed by those of Japan, the United States, WIPO, the Republic of Korea, EPO,
Germany, Chinese Taipei, France and Canada. Figure 38 shows corporations that held the most patents in the period.
Figure 38: Top 10 companies for all storage technology patents filed from 2010 to 2014
Honda Motor
Company

Toyota Motor
Corporation

Panasonic Corp.
Toyota Motor
Co
Ltd.
Companies
Commissariat Energie
Atomique

Chemical
Nissan Motor
GM Global
Tech
Operations
Inc
Toto Ltd
Kyocera Corp
Sumitomo Electric
Industries

0 200 400 600 800 1000 1200
134
Digging into the details reveals a declining trend for chemical storage applications, while those for electrochemical
storage increased. Until 2013, there also appeared to be increased interest in thermal and electrical storage
technologies, and to a lesser extent a similar trend was observed for mechanical storage. However, the share of
patents in these categories is small in comparison with electrochemical storage. See Figure 39:
Figure 39: Number of patents for storage technologies filed from 2010 to 2014
Chemical Electrical Mechanical Thermal Electrochemical

14000
12000
10000
8000
6000
4000
2000
0
2010 2011 2012 2013 2014
Year
Electrochemical
The patent office that filed the most patent applications from 2010 to 2014 was China’s, with over 14 800 patent
applications filed, followed by those of Japan, the United States, the Republic of Korea, WIPO, EPO, Chinese Taipei,
Germany, Canada and France (EPO, 2015a; EPO, 2015b). See Figure 40:
Figure 40: Top 10 countries for electrochemical storage patents filed from 2010 to 2014
Europe
International
Patents:
500
1,000
2,000
5,000
10,000
135
Major commercial patent holders in the period include LG Chemical Ltd. with approximately 2 638 patent applications
filed, followed by Samsung SDI Co. Ltd., Sanyo Electric Co., Panasonic Corporation, Toyota Motor Corporation, Sony
Corporation, Nissan Motor, Bosch and Semiconductor Energy Lab. See Figure 41:
Figure 41: Top 10 companies for electrochemical storage patents filed from 2010 to 2014
Samsung Electro
Mech
Semiconductor Energy
Lab
Sumitomo Electric
Industries

Nippon Chemicon

Companies
Panasonic Corp.
Electrical
JSR Corp
Corning Inc.
AVX Corp
Taiyo Yuden

Sumitomo Electric
Toyama

0 50 100 150 200 250 300
Mechanical
The patent office that filed the most patent applications from 2010 to 2014 for mechanical storage technologies was
China’s, with 985 patents filed, followed by those of the United States, WIPO, EPO, Japan, Germany, France, United
Kingdom and Canada (EPO, 2015a; EPO, 2015b). See Figure 42:
Figure 42: Top 10 countries for mechanical storage patents filed from 2010 to 2014
Europe
International
Patents:
100
200
500
1,000
136
Major corporate patent holders from 2010 to 2014 included Bosch, with 96 patents filed, followed by Peugeot Citroen
Automobiles, Eaton Corporation, Lightsail Energy Inc., General Electric, General Compression Inc., Technoboost,
Siemens AG, Troy McBride and Sandvik Mining Construction. See Figure 43:
Figure 43: Top 10 companies for mechanical storage patents filed from 2010 to 2014
System General Corp.

Murata Manufacturing
Co.
Intersil Inc.
DC/DC converter
Companies
Huawei Tech
Co.
Renesas Electronics
Corp.

STMicroelectronics
Delta Electronics
Inc.
Fuji Electric
Company
Ltd.
Toshiba Corporation

Texas Instrument

0 10 20 30 40 50 60 70 80 90
Thermal
The patent offices that filed the most patents from 2010 to 2014 for thermal storage technologies included China’s,
with over 1 200 patents filed, followed by those of WIPO, the United States, Japan, EPO, Germany, the Republic of
Korea, France and Australia (EPO, 2015a; EPO, 2015b). See Figure 44:
Figure 44: Top 10 countries for thermal storage patents filed from 2010 to 2014
Europe
International
Patents:
100
200
500
1,000
137
Corporations with the most patents in the period include Denso Corporation, with 87 patents filed, followed by
Panasonic Corporation, Siemens AG, Tai-Her Yang, BASF, Toyota Central Research & Development, Commissariat
Energie Atomique, Isentropic Ltd. and Skanska Sverige. See Figure 45:
Figure 45: Top 10 companies for thermal storage patents filed from 2010 to 2014

Fujitsu Limited
Access Business Group International LLC
AC/DC converter
Ideal Power Converters Inc.

Companies
Brusa Elektronik
Enphase Energy Inc.
General Electric
Toshiba Corporation
William C. Alexander
Panasonic Corp.

0 10 20 30 40 50 60 70 80 90 100
Chemical
The patent office that filed the most patents from 2010 to 2014 was Japan’s, with almost 8 000 patent applications
filed, followed by those of the United States, China, WIPO, the Republic of Korea, EPO, Germany, Canada, Chinese
Taipei and Australia (EPO, 2015a; EPO, 2015b). See Figure 46:
Figure 46: Top 10 countries for chemical storage patents filed from 2010 to 2014
Europe
International
Patents:
500
1,000
5,000
10,000
138
Major corporate patent holders included Honda Motor Company, with approximately 985 patent applications filed,
followed by Toyota Motor Corporation, Panasonic Corporation, Toyota Motor Company Ltd., Commissariat Energie
Atomique, Nissan Motor, GM Global Tech Operations Inc., Toto Ltd., Kyocera Corp. and Sumitomo Electric Industries.
See Figure 47:
Figure 47: Top 10 companies for chemical storage patents filed from 2010 to 2014
Ideal Power Converters Inc.

Brusa Elektronik
William C. Alexander
AC/AC converter
Enphase Energy Inc.

Companies
Axel Krause
General Electric

Texas A&M University

University of California
MKS Instr
Huawei Tech Co.
0 2 4 6 8 10 12 14 16 18
Electrical
The patent offices that filed the most applications from 2010 to 2014 were China’s, with almost 2 500 patent applications
filed, followed closely by those of the United States, with approximately 2 050 patents filed, Japan, WIPO, the Republic
of Korea, EPO, Chinese Taipei, Germany, Canada and France (EPO, 2015a; EPO, 2015b). See Figure 48:
Figure 48: Top 10 countries for electrical storage patents filed from 2010 to 2014
Europe
International
Patents:
200
500
1,000
2,000
139
Major corporate patent holders included but were not limited to Samsung Electro Mechanics, with approximately 280
patents filed, followed by Semiconductor Energy Laboratory Co., Sumitomo Electric Industries, Nippon Chemicon,
Panasonic Corp., JSR Corp., Corning Inc., Taiyo Yuden, AVX Corp. and Sumitomo Electric Toyama. See Figure 49:
Figure 49: Top 10 companies for electrical storage patents filed from 2010 to 2014
General Electric

Itron Inc.

Companies
Panasonic Corp.
DataComm
Siemens

Sony Corporation
LG Electronics In
Shanghai
Municipal Electric Power
Jiabin Chen
Elster Solutions LLC

0 50 100 150 200 250 300 350 400
Convert
The countries that filed the most patents from 2010 to 2014 were the United States, followed by China, Japan,
Chinese Taipei, the Republic of Korea, Germany, Canada and Australia (EPO, 2015a; EPO, 2015b). Major corporate
patent holders in the period are listed in Figure 50:
Figure 50: Top 10 companies for conversion technology patents filed from 2010 to 2014

Fuji Electric Company Ltd.

Murata Manufacturing Co.

Mini-grid Management
Samsung Electro Mech

Companies
Bosch
Huawei Tech Co.

Fujitsu Limited
System General Corp.
Siemens
Panasonic Corp.
0 10 20 30 40 50 60 70 80 90
140
The 2010 to 2014 period featured an increase in patents for conversion between AC and DC and for innovations
applicable to all power conversion electronics.
Figure 51: Number of patents for power conversion technologies filed from 2010 to 2014
DC/DC converter
AC/DC converter AC/AC converter Electronics
900
800
700
600
500
400
300
200
100
0
2010 2011 2012 2013 2014
Years
DC-DC conversion
The patent offices that filed the most applications from 2010 to 2014 were China’s, with almost 800 patent
applications filed, followed by those of WIPO, Japan, EPO, Chinese Taipei, the Republic of Korea, Germany, Canada
and the United Kingdom (EPO, 2015a; EPO, 2015b). See Figure 52:
Figure 52: Top 10 countries for DC-to-DC conversion patents filed from 2010 to 2014
Europe
International
Patents:
100
200
500
1,000
2,000
141
Major corporate patent filers in the period included System General Incorporated with approximately 83 patent
applications filed, followed by Murata Manufacturing Inc., Intersil Inc., Huawei Tech Company, Renesas Electronics
Corp., STMicroelectronics, Delta Electronics Inc., Fuji Electric Company Ltd., Toshiba Corporation and Texas
Instruments. See Figure 53:
Figure 53: Top 10 companies for DC-to-DC for conversion patents filed from 2010 to 2014
Samsung SDI Co. Ltd.

Eaton Corp
Hon
Hai Precision Industry
Company Ltd.
Intelligent Storage
Kyocera Corp
Companies
Sanyo Electric Co
BAE Systems Control Inc.
Huawei Tech Co.
General Electric
Shimizu Construction Company Ltd.
0 5 10 15 20 25 30 35 40 45
AC-DC conversion
The patent offices that filed the most applications from 2010 to 2014 were those of the United States, with over 330
patent applications filed, followed by China, Japan, WIPO, EPO, the Republic of Korea, Germany, Chinese Taipei,
Australia and the Russian Federation (EPO, 2015a; EPO, 2015b). See Figure 54:
Figure 54: Top 10 countries for AC-to-DC conversion patents filed from 2010 to 2014
Europe
International
Patents:
20
50
100
200
300
142
Major corporate patent filers included Mitsubishi Electric Corporation with 92 patent applications filed approximately,
followed by Fujitsu Limited, Access Business Group International LLC, Ideal Power Converters Inc., Enphase Energy
Inc., Brusa Elektronik, General Electric, Toshiba Corporation, Panasonic Corporation and William C. Alexander. See
Figure 55:
Figure 55: Top 10 companies for AC-to-DC conversion patents filed from 2010 to 2014
General Electric
Itron Inc.
Elster Solutions LLC
Companies
User Meter
Silver Spring Networks Inc.

LG Electronics Inc
Nagravision
Panasonic Corp.
Yanghwan Kim
Toshiba Research Europe Ltd.
Hoonbong Lee
0 20 40 60 80 100 120 140
AC-AC conversion
The patent offices that filed the most patents from 2010 to 2014 were China’s, with 31 patent applications filed,
followed closely by those of the United States with approximately 30, then EPO, WIPO, Japan, the Republic of Korea,
Chinese Taipei, the Russian Federation, Mexico and Israel (EPO, 2015a; EPO, 2015b). See Figure 56:
Figure 56: Top 10 countries for AC-to-AC conversion patents filed from 2010 to 2014
Europe
International
Patents:
2
5
10
20
30
143
Corporations that held the most number of patents in the past five years included but were not limited to Ideal Power
Converters, with approximately 16 patents filed, followed by Brusa Elektronic, William C. Alexander, Axel Krause,
Enphase Energy Inc., General Electric, University of California, Texas A&M University, MKS Instruments and Huawei
Tech Company. See Figure 57:
Figure 57: Top 10 companies for AC-to-AC conversion patents filed from 2010 to 2014
General Electric
Accenture Global Services Ltd.
Schweitzer Engineering Lab Inc.
Measurement
Companies
Spirae Inc.
Sensus USA Inc.
Corinex Communication Corp.
Toshiba
Schneider Electric Industry SAS
Siemens
0 10 20 30 40 50 60 70 80
Consume
The patent offices that filed the most patents from 2010 to 2014 were those of the United States, with 2 096 patents
filed, followed by China, WIPO, Japan, EPO, the Republic of Korea, Chinese Taipei, Germany, the United Kingdom and
Canada (EPO, 2015a; EPO, 2015b). Major corporate patent holders in the period are listed in Figure 58:
Figure 58: Top 10 companies for all consumption technologies patents filed from 2010 to 2014

China Electric Power Res Inst
Modeling & Simulation
General Electric
Companies
IBM
Siemens
Toshiba
Univeristy of North China Electric Power
China South Power Grid Electric Power
ABB Research Ltd.
University of Tsinghua
0 20 40 60 80 100 120 140
144
From 2010 to 2013 there was a slight increase in energy efficiency and DSM patents filed, followed by a drop in 2014
because of a backlog of pending ones. Figures related to filed patents for back-up technology patents filed have
been more stable. See Figure 59:
Figure 59: Number of patents for consumption technologies from 2010 to 2014
DSM EE Back-up
Innovations
1400
1200
1000

Number of Patent
800
600

400
200
0
2010 2011 2012 2013 2014
Years
Demand-side management
The patent offices that filed the most patents from 2010 to 2014 were those of the United States, with more than
1 970 patents filed, followed by China, WIPO, EPO, Japan, the Republic of Korea, Chinese Taipei, the United Kingdom,
Germany and Canada (EPO, 2015a; EPO, 2015b). See Figure 60:
Figure 60: Top 10 countries for DSM patents filed from 2010 to 2014
Europe
International
Patents:
100
200
500
1,000
2,000
145
Major corporate patent holders in the period included but were not limited to General Electric, with 234 patent
applications filed approximately, followed by Panasonic Corporation, LG Electronics Inc., Samsung Electronics
Company Ltd., the State Grid Corporation of China., Sony Corporation, Siemens AG, Toshiba Corporation, BSH
Hausgeräte GmbH and Hoonbong Lee. See Figure 61:
Figure 61: Top 10 companies for DSM patents filed from 2010 to 2014
General Electric
Panasonic Corp.
LG Electronics Inc
Samsung Electronics
Company Ltd.
Companies
State Grid Corporation

of China
DSM
Siemens AG
Sony Corporation
Toshiba Corporation
BSH Hausgeräte GmbH
Hoonbong Lee
0 50 100 150 200 250
Energy efficiency
The patent offices that filed the most patents from 2010 to 2014 were China’s, with approximately 468 applications
filed, followed by those of the United States, Japan, WIPO, EPO, the Republic of Korea, Canada, the Russian
Federation, Germany and Australia (EPO, 2015a; EPO, 2015b). See Figure 62:
Figure 62: Top 10 countries for energy efficiency patents filed from 2010 to 2014
Europe
International
Patents:
20
50
100
200
500
146
Major corporate patent holders in the period included State Grid Corporation of China, with approximately 82 patent
applications filed, followed by General Electric, Panasonic Corporation, ABB Technology AG, Schweitzer Engineering
Lab Inc., China Electric Power Research Institute, Shanghai Municipal Electric Power, Server Technology Inc., Toshiba
Corporation and Mitsubishi Electric Corporation. See Figure 63:
Figure 63: Top 10 companies for energy efficiency patents filed from 2010 to 2014
State Grid Corporation of China

General Electric
Panasonic Corp.
ABB Technology AG
Companies
Schweitzer Engineering Lab Inc.

EE
China Electric Power Research Institute

Shanghai Municipal Electric Power
Server Technology Inc.
Toshiba Corporation
0 10 20 30 40 50 60 70 80 90
Back-up
The patent offices that filed the most patents from 2010 to 2014 were China’s, with over 180 patent applications filed,
followed by those of the United States, with approximately 100 patent applications filed, WIPO, Japan, EPO, the
Republic of Korea, Chinese Taipei, Canada, Australia and Germany (EPO, 2015a; EPO, 2015b). See Figure 64:
Figure 64: Top 10 countries for back-up patents filed from 2010 to 2014
Europe
International
Patents:
10
50
100
200
147
Corporations holding the most patents included but were not limited to LG Electronics Inc. with approximately 36
patents filed, followed by Panasonic Corporation, Generac Power Systems Inc., Greg Wischstadt, Koonseok Lee,
Hoonbong Lee, Kyocera Corporation, Yanghwan Kim, Junho Ahn and General Electric. See Figure 65:
Figure 65: Top 10 companies for back-up patents filed from 2010 to 2014
LG Electronics Inc
Panasonic Corp.
Generac Power Systems Inc.
Companies
Koonseok Lee
Back-up
Junho Ahn
Greg Wischstadt
Kyocera Corp
Yanghwan Kim
Hoonbong Lee
General Electric
0 5 10 15 20 25 30 35 40
Generate
The patent office that filed the most applications from 2010 to 2014 for generation was China’s, with over 50 000
patents filed, followed by the United States with over 30 000, WIPO, Japan, the Republic of Korea, EPO, Chinese
Taipei, Germany, Canada and Australia (EPO, 2015a; EPO, 2015b). Major corporate patent holders are listed in
Figure 66:
Figure 66: Top 10 companies for all generation technology patents filed from 2010 to 2014
General Electric
Siemens AG
Vestas Wind Systems
Mitsubishi Heavy
Industry Ltd.
Generation
Sharp
Sanyo Electric Company
Fujifilm Corporation
Merck Patent
LG Innotek
Company Ltd.
LG Electronics Inc.
0 500 1000 1500 2000 2500 3000 3500
Source: Author elaboration; EPO, 201a; EPO, 2015b5
148
Filed patents on PV and wind turbines peaked in 2012 and have decreased since. The sharp decrease observed in
2014 might be due to patents that were not yet reported to the EPO database.
Figure 67: Number of patents for generation technologies filed from 2010 to 2014
Solar PV Wind Hydro Biomass

30000
25000
20000
15000
10000
5000
0
2010 2011 2012 2013 2014
Years
PV
The patent offices that filed the most applications from 2010 to 2014 were China’s, with almost 22 274 patents filed,
followed by those of the United States, Japan, the Republic of Korea, Chinese Taipei, Germany and Australia (EPO,
2015a; EPO, 2015b). See Figure 68:
Figure 68: Top 10 countries for solar PV patents filed from 2010 to 2014
Europe
International
Patents:
1,000
2,000
5,000
10,000
20,000
149
Major corporate patent holders included Sharp, with approximately 1 660 patents filed, followed by Sanyo, Fujifilm
Corporation, Merck, LG Innotek and LG Electronics, DuPont, Kyocera and Mitsubishi Electric. See Figure 69:
Figure 69: Top 10 companies for solar PV patents filed from 2010 to 2014
Toyota Motor Company Ltd.

Bosch GMBH
Honda Motor Company Ltd.
Nissan Motor
Companies
Toyota Motor Corporation

CMM
GM Global Technology Operations Inc.

General Electric
Ford Global Technology LLC
Hyundai Motor Company Ltd.
Panasonic Corporation
0 500 1000 1500 2000 2500 3000
Wind
The patent offices that filed the most applications from 2010 to 2014 were China’s, with almost 16 000 patents filed,
followed by those of the United States, WIPO, EPO, the Republic of Korea, Japan, Germany, Canada, the Russian
Federation and Australia (EPO, 2015a; EPO, 2015b). See Figure 70:
Figure 70: Top 10 countries for wind turbine patents filed from 2010 to 2014
Europe
International
Patents:
1,000
2,000
5,000
10,000
150
Corporations holding the most patents included General Electric, with approximately 2 513 patents filed, followed by
Siemens AG, Vestas Wind Systems AS, Mitsubishi Heavy Industry Ltd., Wobben Properties, Samsung Heavy Industry,
Bosch, Gamesa Innovation Tech, Guodian United Power Tech and Sinovel Wind Group Company Ltd. See Figure 71:
Figure 71: Top 10 companies for wind turbine patents filed from 2010 to 2014
ABB Technology AG
General Electric
Mitsubishi Electric Corp.
Siemens AG
Companies
Conversion
Alstom Technology Ltd.

Systems General Corporation
Huawei Technology Company Ltd.
Murata Manufacturing Company
Fujitsu Limited
0 20 40 60 80 100 120 140
Hydro
The patent offices that filed the most patents from 2010 to 2014 for hydroelectric technologies were China’s, with
more than 4 400 patents filed, followed by those of WIPO, the Republic of Korea, the United States, Japan, EPO,
Germany, the United Kingdom, Canada and the Russian Federation (EPO, 2015a; EPO, 2015b). See Figure 72:
Figure 72: Top 10 countries for hydro turbine patents filed from 2010 to 2014
Europe
International
Patents:
500
1,000
2,000
5,000
151
Major corporate patent holders included Voith Patent, with approximately 272 patents filed, followed by Tidal
Generation Ltd., Alstom Hydro France, OpenHydro IP Ltd., Tianjin Tianfa Heavy Machinery, Atlantis Resources Corp.,
Alstom Renewable Technologies, State Grid Corporation of China, Rolls Royce and Toshiba Corp. See Figure 73:
Figure 73: Top 10 companies for hydro turbine patents filed from 2010 to 2014
General Electric
LG Electronics Inc.


Companies
Storage
Samsung Electronics Compandy Ltd.

Toshiba
Siemens AG
Sony Corporation
Hitachi Limited
BSH - Bosch Siemens Hausgeräte
0 50 100 150 200 250 300
Biomass
The patent offices that filed the most applications from 2010 to 2014 were that of the United States, with 4 000
patent applications filed, followed closely by those of China, with 3 900 patents filed, WIPO, EPO, Canada, Japan,
Australia, the Republic of Korea, Mexico and the Russian Federation (EPO, 2015a; EPO, 2015b). See Figure 74:
Figure 74: Top 10 countries for biomass technology patents filed from 2010 to 2014
Europe
International
Patents:
500
1,000
2,000
5,000
Major corporate patent holders included but were not limited to Xyleco Inc., with 542 patents filed, followed by
Novozymes, Lanzatech New Zealand Ltd., IFP Energies Nouvelles, Codexis Inc., DuPont, Shell Int Research, Kior Inc.,
and Danisco US Inc. See Figure 75:
Figure 75: Top 10 companies for wind turbine patents filed from 2010 to 2014
General Electric
LG Electronics Inc.
State Grid Corporation
of China
Companies
Samsung Electronics Compandy Ltd.

Storage
Toshiba
Siemens AG
Sony Corporation
Hitachi Limited
BSH - Bosch - Siemens Hausgeräte
0 50 100 150 200 250 300
ANNEX 5:
Indicators
Plan and design, CMM and consume For wind turbines costs were based on DWEA (2015),
which includes cost projections to 2030. Values for
The indicators for the plan and design, CMM and 2025 were interpolated and for 2035 were linearly
consume functionalities are qualitative and are derived extrapolated. Lifetime values are based on literature
from the findings of the innovations research, including that describes improvements to materials, which was
literature review and key expert interviews. converted to quantitative estimates using professional
judgement.
Store Given the technological maturity, costs for small

hydropower are expected to have limited cost reductions,
Most of the literature provides projections of indicators with technological innovations focused mainly on lower-
through 2030. The slope between the years 2025 and cost and more efficient civil engineering (IRENA, 2012c).
2030 was extrapolated to project out to 2035. Most The Tracking Clean Energy Progress report from the IEA
values for lead-acid and flow batteries were based (IEA, 2012a) estimates that small hydropower costs will
on Fuchs et al. (2012). Advanced lead-acid battery remain the same through 2020. These factors led to our
values were available up to 2020 (IRENA, 2015a). A conclusion that there would be limited changes in the
linear extrapolation was performed to 2025 and 2035. indicators.
Values for lithium-ion batteries were taken from IRENA
(2015a), Jaffe (2014) and RMI et al. (2014). Also, in all Values for gasification technologies were derived from
cases, values provided by the EASE/EERE study were IRENA’s report on biomass costs (IRENA, 2012b) which
considered and verified. Flow battery and LIB values expects a 22% cost reduction for gasifiers by 2020. The
were derived from Viswanathan et al. (2013). Values value was extrapolated linearly into the future for 2025
for flywheels were the least common in reports, and and 2035.
were derived primarily from the EASE/EERE report
value for 2030. Many references provide a range of
values which were used to sanity-check the values, i.e., Convert
providing both the lower and highest value, unless such
was significantly higher or lower in comparison to other For conversion technologies, very limited data were
literature. In isolated cases with no values found, the found in the literature about expected cost reductions
authors used professional judgement. or expected efficiency improvements. Grid-forming
inverters included the most data. They are expected
to follow PV cost reductions through 2025 and 2050
Generate (Fraunhofer ISE, 2015a). A similar cost trend was
assumed for grid-forming and dual-mode inverters.
Values for PV technologies were abundant, and were Efficiency improvements were estimated in all
based mainly on Metz et al. (2014), which provides cases using professional judgement and through
values for 2024. For 2035, costs from the IEA Solar PV consideration of comments from interviewed inverter
Roadmap were used (IEA, 2014). The lifetime projections manufacturers. The lifetime indicators were similarly
were based on professional judgement. derived.
ANNEX 6:
Generation state of the art and outlook
Costs
State of the art in generation
PV modules today cost 75% less than in 2009 (IRENA,
Renewable power generation is central to renewable 2015b). PV technology’s ease of installation, a reduction
mini-grids. The most common renewable energy in materials used, improved manufacturing and less-
generation technologies applicable for most expensive racking systems are expected to bring costs
renewable mini-grids are PV, wind, hydro and some down further into the future (IEA, 2014). In addition,
biomass applications. PV and wind are prevalent in all manufacturers already guarantee 80-90% of nameplate
renewable mini-grid types, while hydro and biomass performance for 20 years, and up to 70% for 30 years
technologies are more common in off-grid applications. (Campeau et al., 2013).
Most generation technologies have achieved their
technological maturity and are favoured with low- Operation and maintenance (O&M) costs for PV
costs due to their increased use in grid projects. New installations are usually cited as USD 0.01–0.03/kWh
generation technology innovation will need major or around 1.5% of CAPEX costs (IEA, 2014; Ossenbrink
breakthroughs from the current state of the art, which et al., 2013) depending on the maturity of the market.
will most likely focus on using fewer and more abundant O&M costs refer to periodical cleaning, inspection and
materials, lowering costs and improving operating replacement of modules. It also depends on market
conditions. maturity (Fraunhofer ISE, 2014). Even if O&M costs
represent a minimal cost of the LCOE (see Glossary
of Terms), improved remote monitoring as preventive
Solar PV
maintenance plus a critical mass in O&M services for PV
Solar PV is one of the most widely used renewable can bring them down further.
energy technologies, due to declines in the cost of
the technology, coupled with its modular/scalable
Technology
deployment and relative ease of installation and
operation. Solar PV is particularly important because Commercially mature silicon-based PV modules have
the resource is easy to predict using readily available reached a 20% solar efficiency, getting close to the limit
tools and it can be deployed in most areas globally, (IEA, 2014). Meanwhile, third-generation modules have
even Arctic areas and in both grid-connected and potential for up to 50% efficiencies and have already
autonomous environments. Table 46 summarises the reached 46% efficiencies in the laboratory (Jordan and
main indicators for PV. Kurtz, 2012; NREL, 2015). Temperature also impacts the
Table 46: Summary of state of the art for PV technologies
Small-scale (rooftop) Large-scale (utility-scale)

2.00–3.50 1.0–2.5
KI 1: Installed cost (USD/W)
0.50–0.90 (module only)
KI 2: LCOE (USD/kWh) 0.15–0.25 0.10–0.20
KI 3: Lifetime (years) 25–30
Renewable mini-grid type All
Solar efficiency 12–21%
Temperature co-efficient (%/°C) (-0.13)–(-0.48)
Degrading factor (%/year) 0.5–1
Source: IRENA, 2015b; Jordan and Kurtz, 2012; MIT, 2015; Ndiaye et al., 2013; IEA, 2014; Ossenbrink et al., 2013; pvXchange, 2015; Virtuani et al., 2012
efficiency. Efficiency losses due to temperature can or vertical axis, the geographic location of turbine,
easily add up to 5-10% of total output depending on the i.e., onshore or offshore, and its size, i.e., small wind
environmental conditions. turbines (SWT, between 100 and 1 000 kW) or large
wind turbines (LWT, between 1.0 and 2.5 MW) (DWEA,
PV market share is dominated by second-generation 2015). There are also very small wind turbines (VSWT,
silicon-based modules, mainly polycrystalline modules less than 100 kW), but their capital costs are much
(>90%), and to a lesser extent CdTe thin-film (Fraunhofer higher (USD 6 000 – 8 500/kW), and in the United
ISE, 2014). Third-generation technologies such as States their market share decreased significantly in 2013
multi-junction, dye-sensitised and organic cells are still (Wiser and Bolinger, 2014). Wind turbines also can be
away from full commercialisation (IEA, 2014). Third- classified according to the number of blades, gearbox
generation technologies represent higher efficiency design, rotor placement and rotational speed, among
possibilities, and in the case of organic cells a reduced others (IRENA, 2012a). Table 47 summarises the key and
environmental impact. specific indicators for SWT and LWT.
Social and Environmental Cost

Although PV is considered a low-impact renewable Wind turbine costs declined significantly until 2004,
energy technology, the manufacturing of PV modules when prices started to increase due to rising steel and
requires the use of highly toxic materials, e.g., silicon cement prices and a shift to offshore projects (IRENA,
tetrachloride, silane gas, sulphur hexafluoride, nitrogen 2012a). Prices are considered to have stabilised in 2010-
trifluoride and cadmium (SVTC, 2009). The energy 2011. A literature review from the IEA identified that
payback time for a PV system can be as much as two most studies report a further 20-30% cost reduction
years, depending on the technology and location of the expected by 2030 (Lantz et al., 2014). O&M costs
installation (Fraunhofer ISE, 2014). The full life-cycle of average around USD 50-80/kW/year depending on the
modules is being addressed by initiatives such as PV turbine size and location. O&M costs can represent up
Cycle to ensure recyclability of modules and end-of-life to 20-25% of overall LCOE, where improved installation
disposal by manufacturers (PV Cycle, 2013). Besides, and maintenance techniques are expected to drive this
studies point out the necessity of standardisation cost down.
of silicon and slurry recycling procedures in order to
reduce production costs (Metz et al., 2014), or the
Technology
focus on the use of alternative, more abundant organic
materials. Cut-in wind speeds (see Glossary of Terms) of wind
turbines range between 2 and 5 m/s in general. However,
it has been possible to generate power by harnessing
Wind turbines
wind with speed lower than this. For example, Honeywell’s
Wind technologies have several classification schemes gearless turbine WT6500 has a cut-in speed as small
that are based on whether the unit has a horizontal as 0.2 m/s. In addition, capacity factors (see Glossary of
Table 47: Summary of state of the art for wind turbines
Indicators Small wind (horizontal-axis) Large wind (horizontal-axis)

KI 1: Installed cost (USD/kW) 4 000–4 500 1 500–3 500
KI 2: LCOE (USD/kWh) 0.12–0.28 0.06–0.14
KI 3: Lifetime (years) > 20–25
Renewable mini-grid type AB, AF, IC IC, ILI
Cut-in speed (m/s) 2–4 3–5
Output decline (%/year) ≤ 1.5 % 1.5–1.9
Source: ARE, 2012; DWEA, 2015; Hughes, 2012; IRENA, 2012a; Kost et al., 2013; Staffell and Green, 2014
Terms) in wind turbines have increased from 22% in 1998 turbine types are Kaplan and Pelton turbines, while
to over 30-40% in 2015. Francis, cross-flow and hydrodynamic screws are less
common. The most common size classifications are:
Current wind turbine lifetime exceeds 20 years, pico hydro (< 5 kW), micro-hydro (<100 kW), mini-
with turbines installed in the 1990s still in operation. hydro (<1 MW) and small-hydro (< 10 MW) (ARE, 2014).
With regard to output a decline of 1.5-1.9%/year was This report only evaluates run-of-river (see Glossary
estimated for onshore LWT (Staffell and Green, 2014). of Terms) hydro technologies and excludes large
The performance of large wind farms declines more hydropower (>10 MW). Table 48 summarises the main
rapidly than small ones (Hughes, 2012). In addition, main indicators for hydro technologies.
declines are observed in the latter years, with older wind
farms deteriorating more rapidly (Staffell and Green,
Cost
2014). Some companies are offering a guaranteed yearly
output above 90% (Enercon) in return for an annual fee. Hydropower plants have high upfront costs that
include civil works for necessary infrastructure and
According to (IRENA, 2012a), the key factors in electro-mechanical equipment. Electromechanical
improving performance and cost efficiency of SWT equipment can represent more than half of the initial
will be more efficient installation and maintenance capital expenditures (CAPEX) in the case of small-scale
techniques, as well as advances in SWT technology and hydropower plants, but this depends on the location
manufacturing. and accessibility of the project (IRENA, 2015b).
In most regions the LCOE of small hydro technologies

Social and Environmental
reflects the most mature installation sites for the
Some of the main environmental concerns for wind renewable energy technology generation sources. The
turbines stem from their potential impact on bird and LCOE breakdown for small-scale hydro plants show
bat populations, which can be minimised. With regard that the main variation in cost is due to equipment and
to land use, this can be addressed by siting projects, the electrical connection/construction (IRENA, 2015b).
e.g., in brownfields. There is occasional opposition from O&M costs for small hydropower are usually higher than
communities that are concerned with visual and sound for solar PV technologies: smaller-scale hydro turbines
impacts of wind projects. have O&M costs of USD 45-250 kW/year, while larger
systems are around USD 40-50 kWh/year. Capacity
factor in hydro turbines depends highly on the resource
Hydro turbines: run-of-river
availability and can vary from 30% to 60%.
Hydro turbines provided the first renewable power
source for autonomous mini-grids. There are two factors
Technology
that differentiate hydro turbines: size and technology.
These factors can have an impact on several aspects For all systems of up to 10 MWe, turbine efficiency can
related to cost, efficiency and head. The most common reach up to 92% and maximum plant availability is 98%.
Table 48: Summary of state of the art for hydropower
Indicators Pico, micro and mini-hydro Small hydro

KI 1: Installed cost (USD/kW) 3 400–10 000 1 000–4 000
KI 2: LCOE (USD/kWh) > 0.27 0.02–0.19
KI 3: Lifetime (years) 30 (economic) > 30
Renewable mini-grid type AB, AF, IC IC
Turbine efficiency Up to 92% Up to 92%
Minimum head (m) 1–3 3–10
Flow (m3/s) 1–5 1–5
Source: ARE, 2014; Asselbergs and Dijk, 2013; ESHA, 2012; IEA-ETSAP and IRENA, 2015a; Roebuck, 2012; Voith, 2015
The selection of turbine type depends on the head 2015b). Biomass gasification is used mainly at small scale
range and flow rate, as well as on non-technical aspects in India and some parts of Africa (SEVEA, 2013). These
such as maintenance requirements and transportation biogas pilots are mostly in autonomous mini-grids.
(Roebuck, 2012). Technology-wise, hydro turbines are Table 49 summarises the indicators for biogasification
considered a well-matured technology, where the main technologies (see Glossary of Terms).
barriers consist of siting selection. Future improvements
are most likely to be concentrated towards using hydro
Cost
turbines in new and different sites and harnessing
a wider range of head, flow speeds and seasonal Installation costs are generally low for biomass
variations. technologies, but they are expected to have higher
operation costs. The installed plant capital costs drawn
The technical lifetime of small hydro plants can reach from a survey of international sources include a range
100 years (IEA-ETSAP and IRENA, 2015a). Nonetheless, from USD 2 000/kW to USD 5 000/kW (IEA-ETSAP
even if physically the hydro turbines can last as long and IRENA, 2015b; IRENA, 2012b). Almost 40-50% of
as 100 years, the economic lifetime is defined as “the the LCOE can be due to costs related to the feedstock
time after which money is saved by abandoning the (IRENA, 2012b).
asset”, usually just above 30 years after which major
refurbishment is required. As with other technologies, Internal combustion engines suffer more wear and tear
an improved lifetime though more robust materials with biogas than with traditional fuels, increasing both
would yield better LCOE and minimise environmental maintenance costs and shortening the lifetime. O&M
impacts. Some installations use variable speed turbines costs are usually 5-6.5%/year of the capital cost for
to maximise the energy production, which can often smaller-scale applications, excluding feedstock costs.
offset the slightly higher initial cost. The hourly operation cost of biogasification is relatively
high due to the challenges of operating and maintaining
not only the gasifier, but also managing the increased
challenges due to impurities in the fuel once fed into a
Regarding environmental considerations of hydro generator. Due to the lack of data (and variation within
installations, there is an impact on river biodiversity. known data), the O&M costs presented here should be
However, smaller hydro plants tend to have a lower considered as estimates.
impact on fish populations.
Technology
Biomass technologies
Small-scale gasifier applications are usually less
There are two major types of biomass technologies: efficient, due to additional gasification process which
mass-burn and gasification. Mass-burn technologies has efficiencies of 50-70%. Gasification is still limited
are used primarily for larger-scale grids and therefore to very small-scale applications up to 100 kW, with
are not addressed in this report (IEA-ETSAP and IRENA, hefty maintenance work usually required in particular
for cheaper ones (Dimpl, 2010). In addition, even if
improvements have been achieved in the last four
Table 49: Summary of state of the art for
biogasification technologies to five years, reliable off-the-shelf technologies are
limited (Dimpl, 2010). There are still issues concerning
Small-scale feedstock that can be used in gasifiers, which is
Indicators
gasifiers limited mainly to dry chopped wood, charcoal and
KI 1: Installed cost (USD/kW) 2 000–5 000 rice husk. Companies like Husk Power in India and
KI 2: LCOE (USD/kWh) 0.07–0.24
AllPowerLabs in California have made significant
KI 3: Lifetime (years) 5–12
progress with small-scale gasifiers, with several
Renewable mini-grid type AB
projects deployed in India, Haiti and Liberia, among
Efficiency (%) 10–25
others. The capacity factor is commonly 50-85%,
Source: Dimpl, 2010; IEA-ETSAP and IRENA, 2015b; IRENA, 2012b; which depends mainly on biomass availability, type of
Mirani et al., 2013; SEVEA, 2013; Vakalis and Baratieri, 2014
feedstock and maintenance works.
Gasification is fraught with problems related to soot and down to USD 0.15-0.40/Wp by 2050 (Fraunhofer ISE,
tar in the production process. Gasification process also 2015a).
requires a consistent, low-moisture feedstock. Another
complication is that there are few equipment providers ●● R&D 1: Use new, thinner/stronger materials
with significant numbers of installations at this scale. In a for PV
similar vein, there is limited public data about expected In the next decade, crystalline silicon will continue
operational costs of these plants (Dimpl, 2010). In to be the dominant material used in PV modules
summary, gasification, in general, has significant O&M (Metz et al., 2014; MIT, 2015), with monocrystalline
costs, particularly when used in combination with an cells surpassing the use of polycrystalline cells
electrical generator due to fouling issues. due to improvements in manufacturing and their
higher potential efficiencies. Technologies such
as thin films and multi-junction show promise
in the next decade and will have a larger share
Biomass technologies have land-use issues, in particular of the market (IEA, 2014). By 2020 new market
related to competition for land with food crops. possibilities are expected for such emerging
However, some fuel choices, such as residual or crop technologies, and in the next two decades
waste, have the advantage that feedstock will not nanotechnology and nanomaterials, e.g.,
compete with food crops, with benefits for waste stream transparent electrodes based on nanoparticle
reduction. Still, availability and inconsistent feedstock metal oxides, are expected to play the largest
quality can complicate feedstock selection. Additionally, role in emerging technologies, which will allow
challenges/concerns remain with regard to the purity of for improved energy management in the cells
the produced gases content of tar and soot, which can and hence their efficiencies (IEA, 2014). Overall,
be carcinogenic and pose severe environmental and the LCOE of PV is expected to drop 45% by
health threats (Dimpl, 2010). 2025 and 60% by 2035, as compared to 2013
costs (IEA, 2014). PV costs today are heavily
linked to the costs of the raw materials and the
Prospects for generation innovation manufacturing costs.
Promising options include dye-sensitised solar
Generation technologies are expected to improve over cells (DSSC), organic cells, quantum wire,
the coming two decades, both in terms of cost and quantum dots, Perovskite cells, thermoelectric
performance. In particular, solar PV is expected to play a devices and the use of graphene (IEA, 2014).
major role due to the technology’s flexibility, modularity DSSC and organic cells have been the most
and ease of implementation (Blaabjerg and Ionel, 2015). patented and researched in the decade between
It is expected that renewable mini-grids will increasingly 2005 and 2015. DSSC are expected to yield
use hybridisation of multiple sources (e.g., solar/wind or lower costs as efficiency is increased (Bose et al.,
solar/hydro). 2015). State-of-the-art DSSCs already achieve
11% efficiency in the lab and are attractive due to
the use of low-cost materials such as ruthenium,
Priority Gap 1 – Lower capital costs for
fluorine-doped tin oxide (most researched and
generation lower cost) and other metal oxides, which are
Renewable energy generation costs for PV in particular also lightweight, flexible, have low toxicity and
have seen an impressive reduction in the last five years. are easy to manufacture (Calogero et al., 2015;
Ye et al., 2015).
Need: New, lower-cost designs for PV Still vegetable-based and other organic dyes
have a greater cost reduction potential, and
Ground-breaking designs and new materials may be even less toxicity, but they are at their infancy, in
able to yield further cost reductions for PV in the particular to the achievable efficiency (Calogero
coming decades. PV module costs have dropped to et al., 2015). For example, scientists from the
USD 0.50/Wp and are expected to reach USD 0.30/Wp University of Botswana and Yale University are
in the coming decade (Metz et al., 2014) and further researching the use of natural extracts such as
Consumption Technologies: Patent Review
Figure 76: Top 10 countries for all generation technology Top institutions patenting
patents filed from 2010 to 2014 generation technologies,
2010-2014
Europe
International ● General Electric

● Siemens AG
● Vestas Wind Systems
Patents:
● Mitsubishi Heavy Industry Ltd.
2,000 ● Sharp
5,000
● Sanyo Electric Company
10,000
● Fujifilm Corporation
20,000
● Merck Patent
50,000 ● LG Innotek Company Ltd.
● LG Electronics Inc.
Source: Author elaboration; EPO, 2015 In the past five years there has
been a noticeable decrease
in patent applications for this
Figure 77: Number of patents for generation technologies for technology, with a reduction
all years prior to 2010 and for 2010-2014 in patent applications of
approximately 70% compared to
Pre 2010 2010

to
2014
120000 all previous years.

100000
80000
60000
in Annex 4.
40000
20000
0
Solar PV Wind Biomass Hydro
Generation Technologies
Source: Author elaboration; EPO, 2015
● PV: materials (in the last five years, particularly on organic cells, dye-sensitised solar and monocrystalline
silicon cells), module characteristics, PV concentrators and power management functions. In the last
five years focus was also on generic improvements (modules, tracking, lifetime, performance, etc.).
● Wind: gearbox improvements, followed by blades or rotors, control equipment, horizontal-axis turbines
and generator.
● Biomass: biofuels, particularly created from waste (i.e., biofuel production by fermentation of organic
wastes)
● Hydro: tidal stream and damless hydropower
morula, lemon and bougainvillea to make DSSC saws and slurry. Reductions in wafer thickness
as an alternative to ruthenium. Lemon dye cells from 300m to 200m a decade ago yielded
achieve a very low efficiency of 0.036% but are a 20% reduction in silicon needed (Tool et al.,
a promising innovation over the next couple of 2001). The current average 180m thickness is
decades to reduce costs and to produce a more expected to decrease further within the next
environmentally friendly solar cell (Maabong et decade, but as the theoretical limit of silicon wafer
al., 2015). thickness is reached, alternative innovations will
Organic solar cells also are a promising third- be required in subsequent decades. Research
generation technology. These third-generation ongoing at Swinburne University together with
solar cells have the potential to cost as low Stanford University has proven in the laboratory
as USD 0.10/Wp (Irvine and Candelise, 2014). the use of ultra-thin wafers that are a tenth of
Nevertheless, many research institutions are current thickness using light-trapping strategy.
now transferring their attention to Perovskite They potentially achieve 15% efficiency, but it is
solar cells as a more promising and efficient still over a decade before such technology will
technology. Apart from the efficiency potential be readily available (Metz et al., 2014; Zhang et
their production is simpler, lower-cost and al., 2014). Efficiency improvement innovations
requires less energy than silicon-based modules also will have an impact in reducing space
(Green et al., 2014). Oxford PV, a spinout from requirements, leading to less railing, cabling and
Oxford University, is researching and seeking other materials.
commercialisation of Perovskite PV cells
with expected costs of USD 0.35/Wp in the ●● R&D 3: Reduce the amount and cost of
near term (Oxford PV, 2015). At Hong Kong conductive metals
Polytechnic University researchers are working Replacing expensive silver with less-expensive
on a Perovskite solar cell that uses a graphene copper is promising as a lower-cost alternative
electrode achieving a 12% efficiency and a (Metz et al., 2014; MIT, 2015; IEA, 2014), since
potential cost as low as USD 0.065/Wp (Feng, copper is 70 times cheaper than silver. The use
2015; You et al., 2015). of silver is expected to drop from 0.14 grams/cell
Another innovative breakthrough that will to 0.030 grams/cell by 2025 (Metz et al., 2014).
potentially radically influence the PV sector is Silver use represents approximately USD 0.02-
the use of graphene in module construction. 0.08/Wp (Metz et al., 2014; Peters, 2013), hence
Although it is too soon to extract conclusions, USD 0.015-0.06/Wp can be achieved with its
scientists at École Polytechnique Fédérale de gradual replacement in the next decade (Ibid.).
Lausanne in Switzerland have demonstrated R&D 4: Increase ease of installation of PV
the “photon-electron multiplication effect” of With regard to the ease of use of PV, in particular
graphene, that is, the ability of the material to the mounting rack will be improved for ease of
excite several electrons when absorbing a single installation, e.g., with rigid frames being replaced
photon. An effect of using graphene at solar by other mounting structures (Metz et al., 2014).
modules would increase PV efficiency, since they Already plenty of new products are coming onto
could exploit all light spectrum with reduced the market that offer simpler racking systems
losses (Papageorgiou, 2015). Other research that require less materials and are faster and
has been taking place exploiting the properties easier to install, such as rail-less mounting
of carbon nanotubes for increasing solar panel systems and ballasted ground systems. Module
efficiency (Shea and Arnold, 2013). manufacturers are integrating racking systems
into their products, and rack manufacturers
●● R&D 2: Reduce the size of silicon wafers are incorporating the installation service into
Silicon wafers account for approximately 57% their portfolios, with many claims of efficient,
of the current solar cell price (Metz et al., 2014). faster and easier mounting times but with little
There are a range of innovations such as casting evidence or quantification of such benefits
wafers with a conventional thickness from molten (Schlichting and Goodman, 2014). In the United
silicon to reduce their thickness, replacing ingots, States it is expected that mounting systems for
PV will drop by up to 9% in the next few years hub assembly, among other innovations that are
(Schlichting and Goodman, 2014). ITRPV expects expected to bring wind turbine LCOE down by up
that mounting costs will be reduced by 12% in the to 6% by 2025 (KIC InnoEnergy, 2014).
coming decade (Metz et al., 2014). There is a large body of research for alternatives
to HAWT, but new patents have flagged relative
Need: New, lower-cost designs for wind to patents prior to 2010. While hundreds of
new breakthroughs and conceptual designs have
Wind turbines already have seen price drops in the past been announced and publicised, in particular for
decade. This trend is expected to continue. For example, small turbines, in the last decade none of these
DWEA (2015) estimates that SWT could drop down “revolutionary” designs have succeeded (DWEA,
from USD 4 500/kW to USD 2 800/kW. 2015). According to DWEA (2015) the true
promise for lower costs in small wind turbines will
●● R&D 1: Explore innovative wind turbine designs be attained through more advanced technology
Horizontal-axis wind turbines (HAWT) are for HAWT, e.g., more effective rotors and blade
expected to continue being the main wind-based structure designs, more efficient generators,
generation technology in the market. A literature optimised power electronics, improved tower
review from the IEA identified that most studies design and the use of taller towers. Vertical-axis
report a further 20-30% cost reduction expected wind turbines (VAWT), in particular for very small
by 2030 (IRENA, 2012a; Lantz et al., 2014). Other mini-grids, may play a larger role in the next
studies showed that the CAPEX of wind turbines decade (new energy husum, 2014).
will remain at the same levels as 2015. The 2030
target for small wind turbines is to drop the ●● R&D 3: Explore the use of new materials for
installed costs by around 50% (DWEA, 2015). The wind turbines
LCOE of the coming decades is expected to fall, Research also has focused on replacing materials
first showing a rapid decline up to 2023 and then used for wind turbines and developing cheaper
dropping by less than 1% per year. The reduction and more abundant options, e.g., using carbon
of the O&M costs could reach 20-23% until 2050 fibre blade manufacturing and possibilities of
(IEA, 2013b). Other more conservative estimates blade elements or segmented blades, and use
foresee for 2025 that the LCOE for onshore of recyclable components (IEA Wind, 2013).
wind can be reduced by only 5.5% caused by a Research is ongoing for the use of cerium, a
reduction in O&M costs and a parallel increase widely available and inexpensive rare earth
in wind energy production due to technological that could replace magnets made of expensive
advances (KIC InnoEnergy, 2014). Higher dysprosium currently used in wind turbines
production volumes, onsite production facilities (Pathak et al., 2015). Still, small and medium-scale
and increased manufacturing automation also wind turbines are receiving less R&D interest
are expected to bring costs down (Lantz et al., and support, with a strong focus on larger-scale
2014). offshore turbines in Europe (EWEA, 2013; EWETP,
2014) and the United States, e.g., out of DOE’s
●● R&D 2: Improve existing wind turbine designs USD 109 million Fiscal Year 2015 wind research
Most of the opportunities to bring costs down budget only USD 3 million was destined for R&D
are expected to be through better design activities for small and medium-sized turbines
and performance of wind turbines, including (DWEA, 2015).
advanced drivetrain designs, enhanced
frequency and voltage control, use of lightweight ●● R&D 4: Research techniques to increase
advanced materials, adaptive temperature production from small wind turbines
control and anti-icing coatings, amongst others Small wind turbines are expected to streamline
(IEA Wind, 2013). HAWT can be improved installations through cementless foundations,
slightly through the optimisation of the rotor other anchoring techniques, labour-saving
size, blade aerodynamics, blade pitch control, equipment designs, and system designs to
resource modelling, mid-speed drive trains and eliminate the need for cranes in installations
(DWEA, 2015). According to Schröder et al. there are new designs coming out such as rotors
(2013), the installation costs of systems smaller downwind of the tower, turbines with two blades
than 250 kW account for 30% of the total or even turbines with no blades (IEA, 2013b;
installed costs. Other companies reconsider the Schröder et al., 2013).
two-blade, downwind design as a way to reduce
production costs by producing the same amount ●● R&D2: Research more robust materials for use
of energy as the three-blade ones. in wind turbine blades
Layer protection and coating are commonly
from polyester, epoxy, polyurethane or acrylic,
Priority Gap 2 – Reduce maintenance needs
which suffer erosion on turbines in harsh climate
Maintenance costs are particularly significant for wind, conditions; hence the need for improved testing
biomass and hydro technologies. A wind turbine’s and materials (Kjærside Storm, 2013). Research
mechanical parts are prone to failure due to wear on stronger and lighter materials for wind turbine
and tear. In addition, improvements such as advanced blades is being done at the Danish Centre for
drivetrain designs, enhanced frequency and voltage Composite Structures and Materials for Wind
control, fault ride-through capacity, use of lightweight Turbines (Danish Technical University, 2015). The
materials, use of larger rotors and taller towers can use of timber for very small turbines and fibre-
improve performance and reliability of wind turbines reinforced composite for larger ones are expected
and generate cost reductions (Lantz et al., 2014). to improve the fatigue behaviour of small and
medium-scale turbines, which generally suffer
Need: More robust designs and fewer moving parts from more wear and tear due to the higher
for small wind turbines rotational speeds (Clausen et al., 2013). Likewise,
the use of biobased composites is a promising
Research is ongoing to improve preventive maintenance, option than can improve lifetime performance
the use of stronger more robust materials, and better and the environmental life cycle of wind turbines
designs that can allow for lower O&M needs and increase (Madsen et al., 2013). “Smart” blade materials are
the lifetime of wind turbines. being researched in order to automatically adjust
pitch for different wind speeds automatically.
●● R&D 1: Develop more robust designs with fewer This will strengthen materials and provide them
moving parts for small wind turbines with higher resistance to wear and tear.
The small wind turbine industry is focusing on
reducing the O&M requirements through value- Need: Reduced maintenance needs for biogas
engineering, smart structures and advanced generation
monitoring (DWEA, 2015). It is expected that
in the next decade wind turbines will start Improved gasification that limits the build-up of soot, tar
incorporating sensors on blades to monitor and other contaminants in the biogas will significantly
fatigue and damages, and signal for needed reduce the maintenance requirements for these systems
repairs. Other improvements geared towards and improve the performance of the engines.
O&M activities themselves that will yield
some cost reductions in the next decade are ●● R&D 1: Explore improvements to the
improved weather forecasting, better inventory gasification process to reduce maintenance
management, optimised inspection activities, needs for biogas generation
turbine condition-based maintenance, wide The critical innovation need for biomass
control strategies, condition monitoring and technology is reducing maintenance
holistic asset management (KIC InnoEnergy, requirements, particularly for feedstock quality
2014). Research is focusing on tools that improve issues. Biogasification technologies suffer
preventive maintenance strategies through from critical problems with soot and tar in the
the analysis of past performance and standard production process. Work is ongoing to improve
approaches to reporting and reducing corrective performance of the gasification process that can
maintenance needs (IEA Wind, 2013). Besides allow gasifiers to handle more types and less
homogeneous feedstocks. Research is ongoing temperatures. For the moment the transportation
in India by Husk Power System and in the United length achieved is a few micrometres (Haedler et
States by All Power Labs. The XGaTE project led al., 2015).
by AVA-CO2 is optimising larger-scale gasifiers to
be able to handle all kinds of fuels including wet ●● R&D 2: Continue to research third-generation
biomass and biowaste (KIC InnoEnergy, 2015). solar cells
Without this innovation, biogeneration is unlikely Breakthroughs with Perovskite cells have
to be cost-competitive with other generation surpassed lab efficiencies over 20% in less
options. than three years of research on its use in PV
applications (NREL, 2015). At Northwestern
University researchers estimated that Perovskite
Priority Gap 3 – Improve efficiency and
titanium oxide (TiO2) solar cells can have energy
increase energy capture pay-back periods as low as three months
Silicon-based solar technologies are already close to since no high-purity silicon or rare metals are
their theoretical efficiency limit, but still have room for used. Perovskite cells are estimate to achieve
improving their efficiency. More promising are other efficiencies of over 30% by 2017 (Gong et al.,
emerging third-generation technologies which have a 2015).
bigger potential of achieving efficiencies as high as 60%
(Irvine and Candelise, 2014). Need: Improve performance for wind
For small wind turbines, DWEA (2015) projects that An increased cut-in speed will allow the use of turbines
the capacity factor of small wind turbines will increase in areas with lower average speeds and with less
50% by 2030, and large turbines will increase 70%. For consistent wind regimes and increase their capacity
example, increasing tower heights and turbine sizes can factors. Output decline in wind turbines can be as high
shift capital costs up; however, those improvements as 16% within a decade (Staffell and Green, 2014). It is
will cause the capacity factor to increase, lowering the expected that the use of stronger materials will reduce
overall energy costs (KIC InnoEnergy, 2014; Schröder et this power decline output, improving performance and
al., 2013). overall economics.
Need: Improved cell efficiency for PV modules, ●● R&D 1: Research designs that increase
particularly at warm temperatures and over lifetime production from small wind turbines
Higher capacity factors are expected to be
●● R&D 1: Improve silicon-based solar PV modules achieved, up to 20% for very small turbines
There are limited efficiency improvements (1-3 kW) and up to 34% for 1-2.5 MW medium-
possible for silicon-based PV as these are size turbines by 2030 (DWEA, 2015). Such
already reaching their theoretical limits (IEA, improvements are expected through a
2014). By 2024, 15% of solar cells are expected combination of technology improvements, e.g.,
to be light-sensitive on both sides, and a large the use of larger rotors and taller towers to
share will contain a glass layer instead of the harness higher wind speeds (DWEA, 2015).
traditional non-transparent backsheet (double- The use of polyurethane-based composites is
glass modules). For example, an increase in being researched for their lighter weight that
module performance by 2% by 2025 can be is expected to increase overall turbine life.
done by improving the transmission of the front Combined with carbon nanotubes this also can
cover glass of the modules (Metz et al., 2014) increase their support and strength (US DOE,
. The use of self-healing nano-layers on solar 2015b).
cells is expected to improve the lifespan of PV
modules (IEA, 2014). An achievement that could Need: Improved low-flow and low-head performance
impact vertically the efficiency of solar panels in for hydro turbines
the next decades is the use of supramolecular
nanostructures for energy transport in room
The trend towards investigating opportunities of low- since they require no dam construction or
head hydropower has led to the development of a penstock. This also decreases the civil works and
new series of hydro turbines exploiting the kinetic engineering costs.
energy of the rivers, instead of the potential energy like ●● Better materials and ICT for hydro turbines
mainstream turbines. Innovations to increase the efficiency and energy
yield of hydropower are related to the material
●● R&D 1: Research hydro designs that can harness selection for turbine manufacturing and the
low head and low flow coatings. For example, stainless steel, fibreglass
Research is ongoing on the development of and other plastic material can achieve better
low-head turbines such as the StreamDiver from performance by reducing friction (IEA, 2012b).
Voith and the Stream turbine from JAG Seabell Furthermore, the use of computational fluid
Co. Other new designs need no head, such as dynamics, algorithms and artificial intelligence
the 5 kW turbine from Smart Hydro Power that can lead to higher efficiencies and cost reductions
can exploit the flow of the rivers with velocities (Kumar et al., 2011).
from 1.2 m/s. Those high-technology turbines can
take advantage of existing water streams such as
Indicators
irrigation canals and can be used hybridised with
storage, auxiliary gensets or other renewable The following tables summarise the expected impact
source during dry seasons. Such turbines are of the innovations on the expected values for 2025 and
in their initial deployment stage. Some new 2035 key indicators for generation.
technologies are more environmental friendly
solutions by avoiding oil and lubricating the Costs for small hydro have a limited scope for
bearings with the use of water (Voith, 2015), cost reductions, with technological innovations
while others integrate a system for garbage driven mainly by lower cost and more efficient civil
collection, like the Japanese generator “Power engineering (IRENA, 2012c). Meanwhile the Tracking
Archimedes”. Furthermore, hydropower plants Clean Energy Progress report from the IEA (IEA, 2012a)
generating power with low-head turbines require foresees that small hydropower costs will remain the
minimum intervention in the natural landscape, same by 2020.
Table 50: PV technology indicators
2025 2035
2015
(Metz et al., 2014) (IEA, 2014)
Small-scale Large-scale Small-scale Large-scale Small-scale Large-scale
KI 1: Installed cost 2.00–3.50 1.00–2.50 1.00–1.90 0.50–1.40 0.40–0.80 0.20–0.60
(USD/Wp) 0.50–0.90 (module only) 0.33 0.3–0.5
KI 2: LCOE
0.15–0.25 0.10–0.20 0.09–0.14 0.06–0.11 0.04–0.05 0.02–0.04
(USD/kWh)
KI 3: Commercial
25–30 30–40 40–50
lifetime (years)
Source: Metz et al., 2014; IEA, 2014
Table 51: Wind turbine indicators
2035
2025
2015 (DWEA, 2015; linear
(DWEA, 2015)
extrapolation)
Small wind Large wind Small wind Large wind Small wind Large wind
Indicators (horizontal- (horizontal- (horizontal- (horizontal- (horizontal- (horizontal-
axis) axis) axis) axis) axis) axis)
KI 1: Installed
4 000–4 500 1 500–3 500 3 200–3 600 1 200–2 800 2 400–2 700 900–2 100
cost (USD/kW)
KI 2: LCOE
0.12–0.28 0.06–0.14 0.11–0.27 0.06–0.13 0.09–0.24 0.05–0.12
(USD/kWh)
> 25 > 25
KI 3: Lifetime increase with increase with
> 20–25 > 20–25 > 30 > 30
(years) preventive preventive
measures measures
Source: DWEA, 2015
Table 52: Hydropower plant indicators
2025 2035
2015
(IRENA, 2012c) (IRENA, 2012c)
Pico, Pico, Pico,
Indicators micro and Small hydro micro and Small hydro micro and Small hydro
mini-hydro mini-hydro mini-hydro
KI 1: Installed Limited Limited Limited Limited
cost (USD/ 3 400–10 000 1 000–4 000 changes changes changes changes
kW) expected expected expected expected
Limited Limited Limited Limited
KI 2: LCOE
> 0.27 0.02–0.19 changes changes changes changes
(USD/kWh)
expected expected expected expected
> 30 (no > 30 (no > 30 (no > 30 (no
KI 3: Lifetime major major major major
30 (economic) > 30
(years) improvements improvements improvements improvements
expected) expected) expected) expected)
Source: IRENA, 2012c; IEA, 2012a, 2010
Table 53: Biogasification generation indicators
2025 2035
Indicators 2015
(IRENA, 2012b) (linear extrapolation)
KI 1: Installed cost (USD/
2 000–5 000 3 500 3 000
kW)
KI 2: LCOE (USD/kWh) 0.07–0.24 0.05–0.19 0.03–0.15
KI 3: Lifetime (years) 5–12 10–15 > 15
Source: IRENA, 2012b
ANNEX 7:
Renewable mini-grid price prediction: Modelling input summary
This Annex contains a detailed summary of the inputs 24-hour power and limited this unserved load to 0.5
and methodology used to determine the optimal system week — comparable to utility grid reliability. The analysis
design, renewable fraction and cost in Section 3.1. The used a 6% nominal discount rate with 2% inflation rate,
key inputs are summarised in Table 54: and average diesel fuel price of USD 1/L.
AB (Autonomous Basic service) allowed up to 2.6 weeks The inputs were modelled in the HOMER Pro software
of unserved energy demand per year and a 16-hour daily to calculate the levelised cost of energy for thousands
served load. AF (Autonomous Full service) provided of potential system designs. The various system designs
Table 54: Summary of key cost inputs for renewable mini-grid cost and renewable fraction modelling*
Installed cost of Installed cost of Battery Dual-mode Administrative and

Year
PV battery technology converter costs distribution costs
2005 USD 6.00/Wp USD 542/kWh LAB USD 1 900/kW USD 0.12/kWh
2015 USD 2.50/Wp USD 950/kWh LIB USD 1 575/kW USD 0.10/kWh
*These numbers may vary according to local market factors
Figure 78: Cost of potential AB renewable mini-grid designs in 2015, comparing renewable fraction (%) on the
x-axis vs. levelised cost of energy (USD/kWh) on the y-axis
and options modelled for years 2015 to 2035 are plotted Useful energy from renewable sources [kwh/yr]
in Figure 78 through Figure 80 comparing each potential RF =
systems renewable fraction (RF) versus LCOE, where Total energy served [kwh/yr]
and
Average annual cost [USD/yr]
LCOE =
Total energy served annually [kwh/yr]
Figure 79: Cost of potential AB renewable mini-grid designs in 2025, comparing renewable fraction [%] on
the x-axis vs. levelised cost of energy [USD/kWh] on the y-axis
Figure 80: Cost of potential AB renewable mini-grid designs in 2035, comparing renewable fraction [%] on
the x-axis vs. levelised cost of energy [USD/kWh] on the y-axis
w w w. i r e n a . o r g
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INNOVATION

ISBN 978-92-95111-43-1 (Print)

ALAB Advanced lead-acid batteries

AMI Advanced metering infrastructure

CAES Compressed air energy storage

CAIDI Customer Average Interruption Duration Index

CAPEX Capital expenditures

CEMG HIO Clean Energy Mini-grids High-Impact Opportunity

CERTS Consortium for Electric Reliability Technology Solutions

CHP Combined heat and power

CMM Control, manage and measure

CPC Cooperative Patent Classification

c-Si Crystalline silicon

CSAC Centre for Self-Assembly and Complexity

CSIRO Commonwealth Scientific and Industrial Research Organisation

DSM Demand-side management

DSSC Dye-sensitised solar cells

EASE European Association for the Storage of Energy

EDLC Electrical double-layer capacitor

EEE Energy-Efficient Ethernet

EERA European Energy Research Alliance

EPO European Patent Office

GSM Global System for Mobile Communication

HAWT Horizontal-axis wind turbine

HVDC High-voltage direct current

IEC International Electrotechnical Commission

IEEE Institute of Electrical and Electronic Engineers

IoT Internet of Things

IRENA International Renewable Energy Agency

JRC Joint Research Centre of the European Commission

LAB Lead-acid battery

LBNL Lawrence Berkeley National Laboratory (US)

LCOE Levelised cost of electricity

LEAP Long-range Energy Alternatives Planning System

LIB Lithium-ion battery

LiDAR Light detection and ranging

LVDC Low-voltage direct current

LWT Large wind turbine

MIMO Multiple Input Multiple Output

MOSFET Metal-oxide semiconductor field-effect transistor

MPPT Maximum power point tracking

NOCT Nominal Operating Cell Temperature

NREL National Renewable Energy Laboratory

O&M Operation and maintenance

OSeMOSYS Open Source Energy Modelling System

PCM Phase-change material

PLC Power line communication or Power line carrier

PoE Power over Ethernet

R&D Research and development

RES Renewable energy source

SAIDI System Average Interruption Duration Index

SEI Solid electrolyte interface

SGIP Smart Grid Interoperability Panel

SHS Solar home system(s)

SMES Superconducting magnetic energy storage

SMS Short Message Service

SOC State of charge

SOEC Solid oxide electrolyser cell

STC Standard Test Conditions

SWERA Solar and Wind Energy Resource Assessment