Solar Turbine Group

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Solar Turbine Group
Solar energy partners for Lesotho August 27, 2008
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STGs Vision

• Provide a decentralized energy alternative to
  Diesel a low cost, sustainable, scalable,
  reliable energy source built in Africa by
  Africans for Africans.

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Technology Overview

• Displace the use of Diesel for electricity and
  LPG for hot water.

• Solar ORCs convert sunlight into electricity and
  heat for hot water

• Adaptable with Diesel generation to meet
  reliability standards while improving fuel
  efficiency.

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How It WorksAvailable Solar Energy
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How It WorksParabolic Troughs

• Parabolic troughs focus sunlights energy onto an
  absorber pipe

• Precision jig maximizes energy capture

• Glass absorber pipe jacket minimizes convection
  heat loss

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How It WorksORC Engine

• Organic Rankine Cycle (ORC) engine converts heat
  into electricity and hot water
• Requires heat source (the sun) and cooling source
  (water or ambient radiators)

• Refrigerant added for best efficiency

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Greater than 3kW max
Solar ORC

Hours

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TechnologySummary

• Uses widely available parts
• Plumbing supplies
• Steel/construction supplies
• Automotive pumps/motors
• Built in Lesotho with RSA supply chain

• Well-placed to compete with alternative
  distributed power options (Diesel/PV)

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Project History

• Two prototype installations in Phamong, Lesotho
  (2006-07) funded by the World Bank.
• System have maintained good integrity over 1.5
  years

• Security issues some equipment stolen during 2008

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The Market

• African Diesel market is growing 20 per annum

• National Electrification Master Plan (NEMP)
• 2015 - min 35 households access to electricity
• 100K more HHs need access)
• Additional 100 schools 100 clinics

• Diesel is currently the most common off-grid
  energy source and no longer affordable

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The Market

• Solar ORCs are a proven cost competitor as a
  baseload solution
• Solar industry has ignored the sub-megawatt
  niche. STG is focused on the technology for
  this scale.

• Lesotho is a prime location to demonstrate the
  utility of technology in this niche

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Customers

• Off-grid community service providers with
  budgetary energy provisions
• health clinics
• schools
• government RE programs
• Probable initial supporters
• World Bank
• NGOs (EU, Clinton Global Initiative, GTZ, GEF
  etc.)

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Value Proposition

• Low Cost
• Conservative levelized cost less than R52/Watt
  (R2.20/kWh)
• 60 cost reduction compared to Diesel
  (R5.80/kWh)
• Optimistic levelized cost R15/Watt (R0.60/kWh)
• 90 cost reduction compared to Diesel
• Environmentally sound caché
• Hedges against long-term fuel requirements and
  price volatility

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Sales Channels

• Use Solar ORC in Rural Electrification tenders
  and procurement processes of NGOs
• Local demonstration and IEC certification with
  approximately one year timeline to completion

• Work with local partners to
• set up a demonstration
• create customer interest
• build manufacturing capacity
• target high profile end users.

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Existing Partnerships

• Lesotho ATS - partnership for coordinating a
  demonstration system in Maseru
• Sopogy - partnership for facilitating a Solar ORC
  demo in the US
• MIT - testbed for improvements in Solar ORC
  technology
• Basotho technicians and entrepreneurs capable of
  forming a Lesotho-based venture

• Looking to expand partnerships in Lesotho

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Moving Forward

• Demonstration unit in Maseru
• Increased involvement of relevant government
  agencies

• Assess depth of interest and the broad potential
  for funding, debt and equity contributions

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Demonstration Unit - Maseru

• Motivation
• Close to partner organizations and potential
  clients
• Supply chain logistics through RSA
• Specifications
• 70 m2 single-axis array 3kWe ORC
• Requirements
• Partner construction of array 2008-09 STG
  delivery of ORC 2009.
• Pilot site selection, 18m x 10m footprint
  off-grid location ideal.

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3kW Demo Unit school/clinic/office
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Strategy

• Partners lead construction effort for solar
  array, with remote consultation of STG
• STG builds and tests 3kW ORC at MIT
• STG staff returns to Lesotho to integrate ORC and
  conduct field testing and training on operation

• Commercialization follows successful
  demonstration

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Potential Contributions

• Engineers/technicians develop demonstration unit
• Ongoing monitoring of quality and operational
  performance
• Collaboratively support local business
  development with Basothos trained by STG

• Other areas?

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In Summary...

• Lowers cost of rural energy service provisions
• Uses an environmentally sustainable energy source
• Is well-placed to compete with PV/Diesel within
  1-3 years
• Transfers technology and skills to Lesotho

• Supports business development and employment for
  Basotho