News Clipping Archive - Page 1102 of 1320

Coal

Coal demand to rise 12 percent next year: PLN

2 August 2019

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Indonesia

State electricity firm PLN has estimated that the coal use for electricity generation in Indonesia will increase by around 12 percent this year due to additional demand from new power plants.

PLN system planning manager Arief Sugiyanto said in Jakarta on Thursday that two new coal-fired power plants (PLTUs), namely the Jawa 7 and Jawa 8 power plants, which have a combined capacity of 2 gigawatts, would start their commercial operation in September, this year.

PLN has estimated that the power sector’s coal use, including power plants operated by the private sector, would increase by 12.37 percent to 109 million tons in 2020.

“Overall, demand for gas will drop next year but demand for coal will increase due to additional demand from new PLTUs,” he said at a gas exhibition event in Jakarta.

The total gas demand is projected to fall by 5.6 percent to 486 billion cubic feet (bcf). However, the demand for LNG is expected to increase by 22 percent to 221 bcf, while the demand for piped gas will fall by 20 percent to only 262 bcf due to, among other factors, low supply from the South Sumatra-West Java Pipeline. (hen)

Electricity/Power Grid

TNB getting ready for open market

1 August 2019

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Malaysia

KUALA LUMPUR: Tenaga Nasional Bhd’s internal restructuring to split its power generation and retail businesses into RetailCo and GenCo could lead to two separate listing entities under the two segments.

Kenanga Research said the restructuring may also pave the way for market reforms that will see new players in the electricity supply industry.

TNB on Monday announced that it would set up two new wholly-owned subsidiaries to house the domestic power generation business (GenCo) and the electricity retail business (RetailCo).

The structure for the remaining businesses such as transmission and distribution network, international business and corporate centre remains unchanged at the group level.

The reorganisation is expected to be completed by September this year.

It was to prepare for the upcoming reforms in the electricity supply industry with the government expected to reveal the Malaysia Electricity Supply Industry 2.0 next month, Kenanga Research said.

“As the retail business is highly anticipated to open up for new comers, RetailCo is prepared to improve efficiency to increase customer collection rate, which is currently slightly less than one sen per kiloWatt hour (kWh).

“At the same time, it will involve rooftop solar generation as well as pushing beyond energy offerings such as multi-utility bundling and billing, Fibre-to-the-Home broadband, or sales of third parties’ products,” the firm said in a report.

Meanwhile, GenCo is aiming to improve renewable energy generation through participation in large scale solar scheme, besides conventional capacity.

Kenanga Research said for assets size indication, the pro-forma financial year 20F18 book value for RetailCo was RM1.84 billion against the group’s book value of RM59.05 billion while GenCo had a book value of RM12.14 billion.

The firm maintained that the fears of open competition against TNB was overplayed given that RetailCo would only contribute less than three per cent to group earnings.

“Contributions from these two entities are fairly small for the moment, with RetailCo’s earnings before interest and taxation (EBIT) of RM200 million only making up less than three per cent of the group’s FY18 EBIT of RM6.7 billion, while GenCo’s RM1.6 billion accounted for 5.4 per cent of group earnings.”

Kenanga Research added that TNB had targeted EBIT of RM13.0 billion by 2025 with RetailCo earnings growing to RM700 million and GenCo to RM2.6 billion.

Renewables

Duterte approves franchise of renewable energy firm

1 August 2019

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Philippines

President Duterte signed on Wednesday Republic Act No. 11357 granting franchise to Solar Para sa Bayan Corp. despite opposition from major business groups.The approved franchise would entail construction, installation, establishment, operation and maintenance of solar-powered facilities to provide renewable energy to areas without electricity.Owned by 25-year-old Leandro Leviste, the firm “aims to serve Filipino communities with cheap, clean, reliable 24/7 electricity,” according to its website.Some business groups, including Manila Electric Co., have previously urged Duterte to review the franchise.“The grant of the franchise will create an undue competitive edge in favor of SPB Corp. and put at a disadvantage other renewable energy companies now operating in our country,” the business groups said last month in a statement.The statement was issued by the American Chamber of Commerce of the Philippines, Financial Executives Institute of the Philippines, Makati Business Club, Management Association of the Philippines, and Semiconductor and Electronics Industries in the Philippines Inc.

The groups argued that the franchise of the firm is different from the current practice that puts power companies on the wholesale electricity spot market, where the rates are set through daily trading.However, the franchise approved by Duterte states that “the grantee shall charge reasonable and just power rates” as approved by the Energy Regulatory Commission so other business and industries can compete with it.The bill granting the firm a 25-year franchise was approved by the Senate last month, amid objections of Senator Sherwin Gatchalian, the head of the Senate’s energy committee.It also hurdled the House in December 2018. Leviste’s mother, Legarda, abstained from voting.Under the law, Congress has the power to grant franchises to companies providing public services such as water and electricity.

Renewables

Solar Para sa Bayan franchise signed

1 August 2019

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Philippines

SOLAR Para Sa Bayan Corp. (SPSB) said Thursday that has been notified that its franchise has been signed by the President, adding that it is willing to work with parties that had opposed its plan to build power microgrids in unserved and underserved areas through.

In a statement, the company said President Rodrigo R. Duterte signed on July 31 Republic Act No. 11357, An Act Granting Solar Para Sa Bayan Corporation a Franchise to Operate Microgrids in the Remote and Unviable, or Unserved or Underserved Areas in Selected Provinces of the Philippines.

The company, led by Leandro L. Leviste, said it was told by Presidential Adviser on Legislative Affairs Secretary Adelino B. Sitoy about the signing.

“We thank President Duterte for giving new choices for electricity to Filipinos in unserved and underserved areas. This is not for us but the Filipino people, and we owe it to the consumers who fought for this to deliver the service they have long deserved,” it said.

The company said electric utilities and power suppliers had claimed the bill “encroached” upon their service areas, and opposed how the bill allows SPSB to enter selected areas that experience regular brownouts, claiming that brownouts are due to many factors that are beyond their control.

“We also wish to extend an olive branch to those who once opposed this bill, for us to support the [Department of Energy’s] goal of achieving 100% electrification and ending energy poverty in the Philippines by 2022. It is time for us to join forces and work together for the common good,” it added.

SPSB said since 2017, it has brought 24/7 power to 12 towns for the first time, benefiting more than 200,000 Filipinos, in regions including Mimaropa (Occidental Mindoro, Oriental Mindoro, Marinduque, Romblon and Palawan), Cagayan Valley, Bicol, Central Visayas, and Davao, without any government subsidy.

The company said it was following Mr. Duterte’s call for the private sector to take the initiative in ending energy poverty in the Philippines by 2022.

The franchise runs for 25 years and authorizes the company to operate in Aklan, Aurora, Bohol, Cagayan, Camiguin, Capiz, Campostela Valley, Davao Oriental, Guimaras, Isabela, Masbate, Misamis Occidental, Occidental Mindoro, Oriental Mindoro, Palawan, and Tawi-Tawi.

The bill was approved by the House of Representatives and the Senate on June 3, 2019.

According to the SPSBC, the final version of the bill included the following amendments: “Limits the scope to unserved or underserved areas in selected provinces; requires the use of renewable energy; subjects SPSBC to regulation by the DoE and Energy Regulatory Commission (ERC); obligates SPSBC to provide accessible and reliable service, and local employment, with financial penalties for failing to meet these obligations; and explicitly states SPSBC ‘shall not be entitled to any government subsidy.’” — Victor V. Saulon, Arjay L. Balinbin

Renewables

Germany assists Vietnamese households in developing solar power

1 August 2019

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Vietnam

Hanoi (VNA) – Households in Vietnam which install rooftop solar power systems by 2021 will receive a maximum of 6 million VND (256 USD) each from the German Government through the German development bank KfW.

This is part of the 14.5-million-EUR renewable energy development project jointly carried out by the Vietnamese Ministry of Industry and Trade (MoIT) and the German Government during 2019-2021.

The project aims at benefiting 50,000-70,000 households across Vietnam.

In addition, Germany will help the country in training human resources and encouraging the private sector and households to participate in rooftop solar power development activities.

The MoIT has recently approved a programme on developing rooftop solar power in the 2019-2025 period, which aims to support the implementation of the national strategy on renewable energy development.

According to the Vietnam Electricity Group (EVN), more than 9,300 rooftop solar power systems, with a total capacity of 193 megawatt-peak, have been installed as of July 18. EVN has installed 204 of the systems in its branches, and the remaining 9,110 systems have been installed on the rooftops of enterprises’ headquarters and households.

Under the Ministry of Industry and Trade’s Decision 2023, Vietnam is targeting installation of solar power systems in 100,000 households between 2019 and 2025.-VNA

Renewables

Asean urged to intensify cooperation in ensuring nuclear safety, security

1 August 2019

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ASEAN

BANGKOK — Vietnamese Deputy Prime Minister and Foreign Minister Pham Binh Minh urged Asean member states to bolster their partnership in regional nuclear safety and security during a meeting in Bangkok, Thailand.

Minh was in the Thai capital to attend the Meeting of the Southeast Asia Nuclear Weapon-Free Zone (SEANWFZ) Commission, as part of the 52nd Asean Foreign Ministers’ Meeting (AMM-52) and related meetings, which runs from July 29 to August 3.

In his remarks at the meeting, the Vietnamese Deputy PM highlighted the commission’s significant role in ensuring the absence of nuclear arms and weapons of mass destruction in the region.

Minh said he wants Asean to improve capacity and preparedness to prevent and respond to radiation emergencies, calling for strengthened coordination among specialized agencies in nuclear power and in disaster relief and response in the region.

At the same time, Asean needs to heighten the SEANWFZ’s role and contributions to international efforts in preventing the proliferation of nuclear weapons and weapons of mass destruction and pursuing nuclear disarmament, he told the meeting.

Minh called for greater efforts from Asean to remove barriers in order to enable five states with nuclear weapons to sign the Protocol to the SEANWFZ Treaty.

During the meeting, the Asean countries affirmed the significance of the SEANWFZ Treaty and expressed desire and determination to keep Southeast Asia free of nuclear arms and all other weapons of mass destruction.

Electricity/Power Grid

P2P power model for rural areas

1 August 2019

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Thailand

The Energy Ministry plans to promote a peer-to-peer (P2P) power trading model for private companies to decentralise the country’s power generation system in line with the new version of the power development plan (PDP) for 2018-37.

Energy Minister Sontirat Sontijirawong said Thai companies will have more chances to participate in this project, but the government will require companies to form joint ventures with small communities.

Renewable power will be a key resource in P2P power trading — including biomass, biogas, waste and solar — depending on the potential in each province.

“Before starting this decentralisation plan, the ministry has to study local communities’ power-distributing infrastructure and transmission lines, then it can set up and design P2P power trading,” Mr Sontirat said. “The project will be open for participation from businesses of all sizes that are interested in the electricity value chain, so peer-to-peer power trade can combine blockchain, smart power meters and a new sandbox for the power business.”

He said the business model will be initiated soon.

The new PDP for 2018-37 emphasises P2P power trade, also known as the prosumer model.

The PDP is also focused on new investment in renewable power by opening private participation and investment with local communities in order to share profit and revenue with locals.

Mr Sontirat said the Energy Ministry plans to revise and reconsider some details in the PDP but has to receive new assignments from Deputy Prime Minister Somkid Jatusripitak before accelerating the plan.

Mr Somkid will visit the ministry next week.

Looking at the long-term landscape for the country’s energy sector, Mr Sontirat said Thailand should take advantage of its central location in Southeast Asia and become a regional power hub.

“Laos aims to be the battery of Asia, but that goal can’t be achieved if there is no transmission line running from Thailand to Malaysia, Cambodia and Myanmar,” he said.

Thailand has peak power demand during the summer season of 30,000 megawatts out of full power generation of 42,000MW.

“The ministry will turn this weak point of surplus power in Thailand into an opportunity by upgrading relevant infrastructure to sell electricity,” Mr Sontirat said.

The ministry plans to revise regulation terms for the Energy Conservation Fund in an effort to allocate budget to projects that benefit all stakeholders the most.

Suwat Kamolpanus, chairman of the renewable energy industry club under the Federation of Thai Industries, said private power companies welcome the new energy policies because most of them will foster new investment.

The peer-to-peer power trade will encourage small companies in provincial areas to participate with local farmers.

Mr Suwat said the government should allocate the first budget to the peer-to-peer power trade, while private companies will mobilise the model’s investment, management and operations.

He said local farmers just feed raw materials to the power projects: “They may have low business management capabilities, so companies should handle those duties.”

Renewables

Solar power for houses

1 August 2019

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Indonesia

The public campaign launched by Energy and Mineral Resources Minister Ignasius Jonan at the National Monument (Monas) in Jakarta on Sunday to promote rooftop photovoltaic (PV) solar panels is part of the government’s multifaceted push to develop clean energy.

The campaign is timely as it comes after the Energy and Mineral Resources Ministry enacted a regulation late last year on licensing for the installation of rooftop PV solar panel systems and feed-in fees for exporting excess power into the grid of state electricity firm PLN.

The regulation stipulates that the installation of a rooftop PV solar panel system requires prior verification and approval from PLN’s local distribution unit, a process that should be completed within 15 days.

The electricity bills of PLN customers with rooftop PV systems will be calculated monthly, based on the kilowatt per hour (kWh) import value minus the kWh export value. The value of electricity exported from rooftop PV solar panels to the PLN grid will be calculated at 65 percent of the applicable PLN fee.

The experiences of countries that have developed rooftop PV solar panel systems show that one of the most complex parts of a feed-in fee system is setting the payment level, as it should provide cost recovery for producers without overcompensating them through windfall profits. In order to reflect the actual production costs and the policy objectives more accurately, the rates should be differentiated by various factors.

The high upfront cost of solar energy has long dampened the prospects of solar power in sunny Indonesia. The installation of rooftop PV solar panels now costs Rp 18 million (US$1,200) per 1 kilowatt peak (kWp). Watt peak represents the maximum electric power that can be supplied by one PV solar panel in standard temperatures and sunny conditions.

The high upfront cost of a rooftop PV solar panel system seems to have been the main cause of the slow growth of customers in Jakarta to only about 600 houses at present. According to a study by the Institute for Essential Service Reform, the potential of rooftop solar power generation in Java alone is more than 350 gigawatts peak (gWp).

And as solar power generation is more about technological innovation than fuel to generate power, prices should continue to fall, as they have for cell phones.

But a well-structured tax incentive package should be developed to encourage more small independent power producers to harness solar power for electricity generation in cooperation with households installed with rooftop PV solar panels. Most importantly, the government should expedite the licensing process for PV solar panel installations.

The biggest complaint raised by solar power investors is the manufacturing regulation that requires a minimum 60 percent local content to be used in PV solar panels, while the domestic industry is currently only able to supply 40 percent.

We think the government should first stimulate the growth of the PV solar panel market by allowing imports until rooftop PV solar panel customers increase to such a level as to create economies of scale for mass production.

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