News Clipping Archive - Page 1017 of 1320

Energy Cooperation

DBS and Trafigura to launch open-source blockchain trade platform

6 November 2019

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Singapore

It will cut trade document transit time from 45 to 20 days.

DBS Bank and energy company Trafigura, in collaboration with Infocomm Media Development Authority (IMDA), the International Chamber of Commerce (ICC), Enterprise Singapore and tradetech Perlin, has partnered to develop an open-source blockchain trade platform that will streamline manual paper-based trade processes and halve trade document transit time from 45 to 20 days, according to an announcement.

The platform’s pilot trade of $27.16m (US$20m) worth of iron ore will be shipped from Africa to China this month, the release added.

ICC TradeFlow platform is built on IMDA’s TradeTrust network infrastructure and powered by Perlin’s blockchain technology. It will reportedly enable companies based in digital harbours like Singapore to seamlessly trade with countries governed by traditional paper-based systems. All parties on the blockchain platform are also able to send, receive and act upon trade instructions in real-time, cutting the end-to-end trade document transit time by more than half.

Further enhancements will be made to the ICC TradeFlow platform, which include offering trade finance on-the-go as well as providing background information and credit ratings on trade participants, vessels and couriers.

IMDA is spearheading the development of a globally trusted network, TradeTrust, for digital trade documentation exchange, and is working with various government agencies, including the Maritime and Port Authority of Singapore, Enterprise Singapore, Singapore Customs, Government Technology Agency, and industry partners such as Singapore Shipping Association.

The planned network aims to reduce inefficiencies and complexities of cross-border trade arising from the current usage of paper-based documentation, such as bills of lading, according to the announcement. This, in turn, will reportedly reduce operating costs for businesses, lowers risk of fraud, and promotes more growth in trade.

Renewables

Uzbekistan picks Thailand’s Helios to deploy 110MW solar project

6 November 2019

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Thailand

Another major solar venture is in the works in Uzbekistan, with the government bringing in a foreign developer to deliver a project to the southwest of capital Tashkent.

In a statement this week, Helios Energy announced it has signed a deal with Uzbekistan’s Ministry for Innovative Development to deploy a 110MW solar plant in the region of Sirdarya.

The Bangkok-headquartered firm will develop, design and source components and build the large-scale installation, set to feature some 220,000 500W panels.

According to the timetable, installation of cabling should get underway at the 80-hectare site in early 2020, with the project set to become fully operational by late 2023.

The deal for the 110MW Sirdarya project comes only one month after the EPC secured the government’s go-ahead to a 40MW extension to a solar complex in the Namangan region.

According to Helios, the addition approved under the recent memorandum of intent takes the planned capacity at Namangan – a four-hour drive to Tashkent’s east – up to 360MW.

PV ambitions of Central Asia’s most populous state

Helios’ Uzbek forays look set to breathe yet more life into an already bustling solar scene in the Central Asian republic, which is being assisted under the Scaling Solar scheme.

The World Bank programme helped draw foreign eyes to Uzbekistan in early October, when the first competitive tender triggered a US$0.027/kWh bid for a 100MW solar contract.

At the time, transaction advisor IFC billed the bid by UAE firm Masdar Clean Energy as “game-breaking” for Uzbekistan and “one of the lowest tariffs” seen in emerging markets.

The country, Central Asia’s most populous, announced later last month it would follow its auction debut with second (400MW) and third (500MW) tendering rounds in the coming months.

The solar build-out efforts are part of Uzbekistan’s effort to curb its reliance on fossil fuels, natural gas in particular. The country is working to source 25% of its electricity from renewables by 2030.

Helios aside, other foreign names adding to the solar momentum include Canada’s Skypower Global – which is eyeing a 1GW pipeline – and France’s Total Eren, which is deploying a 100MW plant.

Energy Economy

Bank Islam signs strategic MoU with Sarawak Energy and SJPP

6 November 2019

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Malaysia

BANK Islam Malaysia Bhd recently signed a memorandum of understanding (MoU) with Sarawak Energy Bhd and Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP) to provide financing solutions for vendors listed under Sarawak Energy’s Vendor Financing Programme.

With a total allocation of RM300 million, the programme aims at improving access to financing and liquidity for vendors with secured contracts from Sarawak Energy and are in compliance with Bank Islam’s credit assessment and SJPP’s eligibility and criteria.

Head of commercial banking Ahmad Haliman Abdul Halim signed the MoU on behalf of Bank Islam, while Sarawak Energy was represented by group COO Lu Yew Hung and SJPP by GM Azlan Mohd Agel.

The signing ceremony was witnessed by Bank Islam head of East Malaysian region Abdul Malek Abdullah, Sarawak Energy legal GM Stephanie Gae Chin and SJPP senior manager Juanita Rusmini Abdul Jalil.

Ahmad Haliman said: “Bank Islam has been taking an aggressive approach in encouraging projects that exemplifies our value-based intermediation mission, including providing financing with a positive impact on the economy, community and the environment. In supporting Sarawak Energy’s Vendor Financing Programme, Bank Islam can assist vendors with small contracts to gain access to financing that will help them execute projects awarded by Sarawak Energy or its subsidiaries according to schedules.”

As part of the initiative, SJPP, a wholly owned agency under the Ministry of Finance, will act as the credit guarantee provider. SJPP will support the programme by providing up to 70% credit guarantee to eligible vendors.

“This exciting collaboration will broaden the bank’s business market as the contracts awarded by Sarawak Energy will be financed under the Vendor Financing Programme. With total contracts awarded by Sarawak Energy of more than RM500 million a year, Bank Islam is in a better position to help the vendors access the capital they need to strengthen their business capacity and capabilities.

“Bank Islam is proud to be partnering Sarawak Energy and SJPP in embracing the government’s initiative in promoting greater energy sustainability in the country, at the same time contributing to Sarawak’s need for reliable and renewal energy in achieving sustainable growth and prosperity,” Ahmad Haliman added.

Bank Islam is committed to being part of the financial ecosystem in providing business solutions and adds value to Sarawak Energy’s Vendor Financing Programme vendors.

The bank also takes great pride in its innovative approach towards client servicing by offering the most extensive network coverage and capabilities in meeting the energy sector requirements. The partnership with Sarawak Energy and SJPP is hoped to further catalyse Malaysia’s green technology initiatives for a sustainable future.

Renewables

German companies consider investing in local solar sector

6 November 2019

–

Cambodia

A host of companies from Germany showed interest in Cambodia’s clean energy sector during a conference on solar power held yesterday in Phnom Penh.

For in depth analysis of Cambodian Business, visit Capital Cambodia
.

With the government having recently unveiled its goal of having 20 percent of locally-produced energy come from solar farms, the sector is attracting an increasing number of foreign players.

During yesterday’s conference on industrial and commercial solar energy, held at Raffles Hotel in Phnom Penh, several German companies introduced their products and services to the government, NGOs, and factory owners.

The event was organised by the Delegation of Germany Industry and Commerce in Myanmar (AHK) and supported by the GIZ Project Development Program, the Global Business Network, the German Business Group Cambodia, and the European Chamber of Commerce (Eurocham).

The conference aimed to promote renewable energy and energy-efficient technologies, showcase sustainable energy solutions, and contribute to climate protection, the organisers said.

German firms Enebar, Dhybrid, 21st Century Clean Energy and 4i Capital, among others, were represented at the event.

The conference is part of the German Energy Solution Initiative – Energy Solutions Made in Germany, a programme supported by Germany’s Federal Ministry for Economic Affairs and Energy.

Christian Berger, German Ambassador to Cambodia.
KT/Siv Channa

Participants at the conference discussed the Kingdom’s renewable energy policy and mostly focused on the opportunities and challenges to develop the sector.

Martin Klose, delegate of AHK Myanmar, said the conference will open the door for Germany to increase investment in Cambodia.

“We have been tasked with promoting German trade and investment in Cambodia, so we are holding a lot of events in Germany to raise awareness about Cambodia and put the Kingdom in the map of German investors,” Mr Klose said.

AHK Myanmar represents German trade and investment in Cambodia, Laos, and Myanmar.

Victor Jona, director-general of energy at the Ministry of Mines and Energy, told reporters that the government welcomes all investors looking to develop projects in the solar sector.

“We support these initiatives because clean energy like solar power does not harm the environment. The government is working to promote these types of investment,” Mr Jona said after the conference.

Mr Jona touted Cambodia’s potential in solar, pointing out that the Kingdom has a very high number of peak sunlight hours.

According to Mr Jona, with only two solar farms in operation, Cambodia generates 90 megawatts from solar. However, by 2022, seven new solar facilities will be running, bringing that figure up to 410 MW.

Energy Economy

Are Thailand’s investments abroad sustainable?

6 November 2019

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Thailand

Although Prime Minister Prayut Chan-o-cha announced Thailand’s commitment to the United Nations Guiding Principles on Business and Human Rights (UNGPs) in 2017, outbound investment remains a largely unregulated sector.

Thai firms are significant investors in ASEAN countries, and Thailand’s foreign direct investment (FDI) in the region stood at US$2.37 billion in 2017 – behind only Singapore (US$18.75 billion) and Malaysia (US$3.99 billion).

Thai companies also have a vast reach. The Siam Cement Group, for example, has more than 90 subsidiaries operating in ASEAN outside Thailand – and more than 55 of them operate in Cambodia, Lao PDR, Myanmar and Vietnam. Another Thai conglomerate, the Charoen Pokphand (CP) Group, has farming, food and telecommunications interests throughout the region.

THAI FDI IN ASEAN — Source: ASEAN Secretariat

Short-term profit

However, some Thai firms have taken advantage of weak investment laws in neighbouring countries by developing large-scale projects which have led to environmental degradation or human rights abuses such as land grabs.

While these projects would probably have not got off the ground in Thailand due to opposition from local communities or restrictive national requirements, ASEAN’s failure to provide a regional regulatory framework for social and environmental investment standards has also played a part in these companies’ continued focus on short-term profit over long-term sustainability.

Although environment, social and governance (ESG) is a relatively new concept in ASEAN boardrooms, some 89 percent of the 140 large investors, asset owners and asset managers polled at an investment forum in Thailand last month said that ESG-integrated investment portfolios are likely to perform as well, or better than, non ESG-integrated portfolios.

Energy needs in ASEAN have risen in tandem with its population and economy, and while Thailand has capitalised on this by developing a variety of projects in neighbouring countries, many of them have been criticised for failing to meet ESG standards.

The National Human Rights Commission of Thailand (NHRCT) found that of the 2,119 complaints received concerning adverse business-related human rights impacts from 2001 to 2018, the three most frequent complaints were the adverse effects of environmental pollution on human health, forced evictions of communities with no or inadequate compensation, and lack of or inadequate public consultations with communities affected by large-scale development projects.

Land grabs and coal

The Dawei Special Economic Zone (SEZ) in Myanmar, Koh Kong and Oddar Meanchey sugar plantations in Cambodia and the Hongsa Mine and Power Station in Lao are partially owned by Thai investors – and they have all come under fire by local communities and other stakeholders for land grabs.

Non-governmental organisation (NGO) EarthRights International has noted how 456 Cambodian families from three villages were forced out of around 5,000 hectares of land to make way for a sugar plantation in Cambodia’s Koh Kong province, while petrochemical industries have polluted local water supplies in the Dawei SEZ.

Coal projects in the Mon and Kayin states in Myanmar, the Koh Kong province in Cambodia, and both East and South Kalimantan in Indonesia have also been blamed for their impact on the environment. Just last month, the Philippines’ opened a coal-fired power plant in Quezon – a joint venture between the Philippines’ Meralco PowerGen Corporation (MGen) and Thailand’s EGCO Group.

Although coal is a cheap way to power ASEAN’s growing energy needs, it is by no means clean. In Thailand for the recent ASEAN Summit, United Nations Secretary-General António Guterres said that Asia has an “addiction” to coal and called for a halt in new coal-fired power plants.

Greater awareness

While Thai firms undoubtedly have a key role to play in ASEAN’s economy, they are slowly realising that increasing the wealth of shareholders can no longer overshadow the long-term goals of social harmony, inclusive growth and sustainable development centred on ESG.

In August, the Bank of Thailand, the Thai Bankers Association and 15 Thai banks agreed on a set of guidelines which takes ESG criteria into account.

For the Government Pension Fund of Thailand (GPF), their ESG-focused portfolio posted a 10-month return of 4.6 percent, outperforming its main equity fund by 50 basis points according to Stock Exchange of Thailand Governor Seree Nonthasoot in a recent interview with a regional trade journal.

During a panel discussion on Lao PDR’s controversial Xayaburi dam on 22 October, Sarinee Achavanuntakul – founder of Sal Forest, a corporate sustainability research firm – said that Thai bankers are now no longer merely repeating borrowers’ promises that proper environmental and social impact assessments were conducted – and heeded – before the start of projects.

Financed by six Thai banks in an investment Sarinee said was a “no-brainer” for the average Thai banker, the newly-operational dam has been blamed for contributing to historically low water levels on the Mekong river.

“During the Sustainable Banking Forum in August, bankers from Kasikornbank and Siam Commercial Bank – two of the dam’s lenders – conceded they may need to look at more standards when financing hydropower projects,” said Sarinee, a former banker herself.

“A senior banker said he was not sure if the drought was related to the dam but said it was a controversy they had to look into.

“You may think that’s not saying much, but… It’s a move in the right direction.”

Electricity/Power Grid

Businesses bear with rising electricity bills in hopes of better supply next year

6 November 2019

–

Myanmar

Myanmar’s electricity tariff hike has led shops and restaurants in Yangon to cut back on electricity consumption, and local business owners are betting that the government will be able to plug the shortfall next summer.

Yet, power continues to be in short supply. The government is now rushing five so-called “emergency power” projects totalling more than 1000 megawatts with Chinese companies in order to avoid repeating this year’s widespread blackouts and scheduled outages, which interfered with business operations and reduced productivity levels.

In the meantime, the higher tariffs appear to be strangling Myanmar’s economy. Despite individual measures to reduce power consumption, local business owners and residents told Myanmar Times they have struggled to remain profitable due to the rate increase.

The electricity bill of The Best Premier tea house in Kyauktada township, Yangon, has more than doubled from K90,000 to as high as K180,000.

“If the increase in electrification rates isn’t accompanied by a stable supply of energy, then the hike is meaningless,” said Ko Kyaw Htike Oo, who owns The Best Premier .

Eleven local teashops, restaurants and hair salons surveyed now either seek to reduce power consumption to offset the increased rates, or raise their revenues by charging consumers more.

“As soon as I knew about the tariff hike, I considered increasing the price for some food items,” KO Kyaw Htike Oo said, noting the impact on his business by the tariff hike.

Now he sells Myanmar tea at K500, a 25 percent increase from the original price K400. Even after adjusting the price, profit fell by more than K100,000 a month.

The energy ministry in July raised the electricity rates substantially, the first changes in the tariffs in five years.

Under the new rates, residential households and religious buildings will continue to pay at the previous rate at K35 per unit, but only for up to 30 units. For consumers using more than 30 units of electricity now, the government has introduced further breakdown pricing. Consumers and businesses can pay from 1.3 times to 2.5 times more – up to 72.9pc of increase.

‘Now I use charcoal more than a hot plate to heat food, so it’s definitely more work for me.’ – Ma Htwe Htwe Tun, Stall owner

Consumption trends

The increased tariff has raised awareness among the public about using electricity, prompting them to alter their consumption patterns. Electricity consumption for households has mostly decreased after the tariff hike among the households Myanmar Times talked to.

“We have limited our usage of the hot plate,” said Ma Htwe Htwe Tun, who runs a street food stall on 39th Street. “Now I use charcoal more than the hot plate to reheat the food, so it’s definitely more work for me.”

Another teahouse owner in Kyauktada, Ko Thant Sin, took up drastic measures like turning off refrigerators at night.“Things have not been convenient after the hike,” Ko Thant Sin admitted. And problems arise corresponding to his counter-measures, such as meat being rotten easily, and the restaurant looked dimmer because of lights being turned off.

Ma Khin Myo Kyi from The Guys salon in downtown Yangon has limited options to reduce power consumption though. For salons, electricity is indispensable to most of the equipment, electric razors, hair curlers, and groomers, among others.

Nevertheless, the business owners said they have high hopes that the tariff hikes will result in stable power supply next year, which would help with some of their struggles.

Across the board, businesses have largely welcomed the hike in principle because they see that as the only way forward for electrification to take off, despite public sensitivity about the changes. Instead of running a deficit by heavily subsidising electricity supply, the government could channel the funds freed up into new power projects.

U Htet Aung Khine, government affairs manager of EuroCham Myanmar, said the tariff reform could help to narrow the gap between energy supply and demand, as long as the revenue generated by tariff adjustments leads to better power infrastructure.

“This move will not only attract more interest in the investment of power generation but will also create more attention in energy saving, efficiency, and power quality,” added U Htet Aung Khine

Persistent shortages

Considering that manufacturing businesses and factories consume most of the country’s energy, however, the power shortage in Myanmar is expected to continue, said Katie Patterson, editor of FMR Research & Advisory’s Myanmar Energy Monitor.

Ministry statistics suggest that power demand is growing by 15-17 pc every year. To fill the gap and provide the additional 12.6GW by 2030, at least US$2 billion per year of investments are needed, according to estimates by the World Bank.

Myanmar’s current power generation capacity is around 3600 MW but it was still 600 MW short of demand during this year’s hot season.

While the ministry’s permanent secretary U Tin Maung Oo said the five emergency projects are expected to ensure sufficient electricity for the summer of 2020, industry consultants are worried that the power supply will get worse significantly next year, even if the projects do materialise.

To tea shop owner Ko Kyaw Htike Oo, persistent power shortages coupled with higher tariffs could further disrupt his business and livelihood.

“We don’t know how the government will deal with the electricity distribution issue next summer, but if there are going to be power cuts, the situation will be bad for us.”

When asked about whether the government’s ability to deliver power supply would influence the way he votes in the 2020 elections, he said: “We will decide on who to vote as the election draws closer, and our vote will be based on the things we experienced and how we have suffered.”

Electricity/Power Grid

Myanmar State Firm Signs Deal to Buy Electricity From Strategic Chinese Project in Rakhine

6 November 2019

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Myanmar

YANGON—A Myanmar state-owned enterprise has inked a power purchase agreement with a Myanmar-China joint venture company that is developing a 135-megawatt (MW) power plant project in Kyaukphyu, in western Myanmar’s Rakhine State.

The plant is one of the strategic projects that make up the Myanmar section of Beijing’s grand infrastructure plan, the Belt and Road Initiative (BRI).

The power purchase agreement (PPA) was signed on Tuesday between Electric Power Generation and Kyauk Phyu Electric Power Co. Ltd, a joint venture of Myanmar’s Supreme Group and Chinese state-owned firm Power China.

The company plans to develop a US$180-million (273.3-billion-kyat) combined cycle power plant, which will use gas from the Shwe field. The project will supply an estimated at 1,005 million units annually to Rakhine State and the national grid.

Supreme Group deputy chief executive officer U Htu Htu Aung told The Irrawaddy the company had been waiting to sign a PPA before beginning construction of the power plant.

Construction would begin soon, he said.

The Kyaukphyu project is expected to generate power by 2021 in accordance with the Myanmar Ministry of Electricity and Energy (MOEE)’s power-generation plan, he said.

According to the MOEE, Myanmar’s power demand is increasing by 1,000 MW a year. This is expected to rise to 1,588 MW by 2020.The ministry has set periodic electricity access targets through 2030. It aims for 55 percent of the population to have access to power by 2020-2021, 75 percent by 2025-2026 and 100 percent by 2030-2031.

The government and company agreed to pay in kyats for the power generated. However, U Htu Htu Aung declined to provide details of the agreement price, saying only that it is reasonable compared with other gas companies.

The MOEE granted Electric Power Generation and Kyauk Phyu Electric Power Co. Ltd a “notice to proceed” in January 2018. The companies signed a letter of acknowledgement of the conclusion of PPA negotiations with Minister for Electricity and Energy U Win Khaing on the sidelines of the Belt and Road Forum in Beijing in late April.

Myanmar state-owned media praised the project as “an important project for the Myanmar-China Economic Corridor [CMEC]”, which forms a section of the BRI.

Kyaukphyu is in a strategic location for the BRI, a signature project of Chinese President Xi Jinping. Myanmar and China signed a framework agreement on the Kyaukphyu Special Economic Zone (SEZ) in November 2018. The project gives China direct access to the Indian Ocean and allows its oil imports to bypass the Strait of Malacca.

The crucial BRI project includes a 1,000-hectare industrial park and deep seaports on Made and Yanbye islands. The park is expected to include facilities for textiles and garments, construction-materials processing, food processing, marine supply and services, pharmaceuticals, electrical and electronics goods, and research. The deep seaports will have annual capacity of 7.8 million tons of bulk cargo and 4.9 million TEU containers.

“Our project is not officially listed in the government-to-government CMEC projects list, as we are [funded] by private investment. Our [joint venture] is a fully private company. But the project is a strategic project under the CMEC,” U Htu Htu Aung said.

Myanmar and China signed a 15-point MOU for the CMEC last year.

Under the MOU, the governments agree to collaborate on projects in a number of sectors including basic infrastructure, construction, manufacturing, agriculture, transport, finance, human resources development, telecommunications, and research and technology.

The estimated 1,700-kilometer-long corridor will connect Kunming, the capital of China’s Yunnan province, to Myanmar’s major economic checkpoints—first to Mandalay in central Myanmar, and then east to Yangon and west to the Kyaukphyu SEZ.

Topics: Belt and Road initiative, BRI, CMEC, Electric Power Generation, Kyauk Phyu Electric Power Co. Ltd, Kyaukphyu SEZ, Ministry of Electricity and Energy, MOEE, Rakhine

Renewables

Vietnam is pushing ahead of Southeast Asia in its drive for renewable energy

5 November 2019

–

Vietnam

SINGAPORE — Vietnam is powering ahead of the rest of Southeast Asia as it pushes for greater reliance on renewable energy.

The region, long criticized for lagging behind in its efforts to adapt to more sustainable ways, is still heavily reliant on coal consumption. Vietnam, however, has bold ambitions to use more renewable energy such as wind and solar.

The country is aiming to boost its power output produced by renewable energy to about 23% by 2030, according to Andreas Cremer, director of energy and infrastructure for Europe, Middle East and Asia at German investment firm DEG.

Citing the German Corporation for International Cooperation, a development agency, Cremer highlighted that 10.7% of the energy mix will be from renewables and 12.4% will be from hydro.

“The power development plan of Vietnam is evolving continuously,” Cremer told CNBC at the Asia Clean Energy Summit last week. The government’s renewables and hydro targets for its energy mix was raised from 16% in 2011 to 23% in 2016.

“That is actually quite impressive if you realize that they only changed their power development plan in 2016 and basically beginning of this year, they basically had nothing,” he said.

However, he said, the country was able to take more than 4 gigawatts of renewable energy capacity online by June — and that accounted for about 8.28% of Vietnam’s electricity supply mix, according to the country’s largest power company Vietnam Electricity.

“So I think that is quite an achievement,” he added.

Global energy consultancy firm, Wood Mackenzie, said Vietnam is now the leader in Southeast Asia’s solar photovoltaic (PV) market and has the largest installed capacity in the region. Solar PV is a technology that converts sunlight into electrical energy.

In an October report, Wood Mackenzie said Vietnam’s cumulative solar installation will reach 5.5 gigawatts this year — which makes up about 44% of Southeast Asia’s total capacity. In comparison, Vietnam produced just 134 megawatts — or 0.134 gigawatts — in 2018.

Replacing coal

Cremer said it’s not likely for countries to fully replace coal. “It’s not realistic for those companies to cut out coal, and completely rely on renewables,” he said. Still, the trend is that policymakers and companies will try to replace coal with renewable energy for economic growth.

Economies will “need efficient electricity to grow,” Cremer said — especially as people continue to migrate into urban areas, such as mega-cities like Jakarta, Bangkok and Ho Chi-min city.

“People living there are clearly demanding better air quality. And that is another reason we are seeing a push for renewables,” he added.

Wind production costs have also come down in recent years, making its price almost comparable to relying on coal. That creates opportunities for governments, policymakers as well as private sector to invest in renewable energy options in Southeast Asia.

Wood Mackenzie said in its report that although Southeast Asia as a whole is still an emerging region in solar PV installations, its cumulative solar PV capacity is expected to reach 12.6 gigawatts this year, and is expected to grow almost threefold to 35.8 gigawatts in 2024.

“Large-scale solar will dominate the installation capacity for the next five years,” and the firm “expects small-scale solar to account for 32% of the capacity additions in 2024,” it wrote.

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PV ambitions of Central Asia’s most populous state

Replacing coal

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