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Electricity/Power Grid

Renewable energy companies push development of mini-grids

4 June 2019

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Philippines

MANILA, Philippines — Renewable energy developers are pushing for the development of mini-grid systems to fasttrack the achievement of 100 percent electrification in the country.

The Renewable Energy Association of the Philippines (REAP) believes mini-grid systems can accelerate the pace of electrification nationwide.

“Mini-grid systems will play an important role in ensuring and accelerating the total electrification of the country. Being an archipelagic country, centralized power generation can be challenging, if not costly,” REAP president Erel Narida said.

He said mini-grid systems could be a suitable solution for electrification which currently stands at 88.3 percent, with about 2.78 million households still unelectrified as of December 2017, citing data from the Department of Energy (DOE).

“Most of these households are located in Visayas and Mindanao, mostly small islands, either underserved using expensive diesel genset with limited operation or totally unserved. Mini-grid systems can utilize indigenous and new and renewable energy (RE) like solar, wind, hydro, biomass or ocean in power generation that will eventually reduce our dependence on diesel or imported energy,” Narida said.

The REAP official cited the hybrid mini-grid project of Sabang Renewable Energy Corp. (SREC), located in Sitio Sabang in Barangay Cabayugan, where the Puerto Princesa Subterranean National Park is located.

SREC – a consortium of Vivant Energy Corp., Gigawatt Power Inc. and WEnergy Global – will operate a solar-diesel hybrid power plant and an electricity distribution system that will provide stable and reliable renewable energy in Barangay Cabayugan, Puerto Princesa City.

Narida said SREC has showcased such integration / hybridization of RE specifically solar, battery and diesel generator sets as back-up for power generation, making it more socially and environmentally acceptable due to reduced running time of diesel genset, and use of RE as primary source of power.

“It’s very encouraging for local mini-grid developers to follow suit. The next challenge is to accelerate replication with more participation of local small and medium enterprises (SMEs) in the RE market space,” he said.

“The easing of regulations, access to funds, adaption of new RE technologies on integration and understanding the market both economics and social dynamics on island mini-grid are key factors that we have to look into to accelerate this development,” the REAP official said.

Under optimal conditions, SREC’s hybrid plant will generate as much as 2.6-megawatt peak once completed. This will allow the mini-grid to provide power to approximately 10 public buildings, 18 small businesses, 19 hotels and restaurants and 583 households.

The project is seen to spare the environment from over 25,000 metric tons of carbon dioxide emission while providing stable and reliable energy that will improve everyday living in Cabayugan.

Electricity/Power Grid

PM: No more electricity shortages from next year

4 June 2019

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Prime Minister Hun Sen announced on Monday that by next year, Cambodia will not face a shortage of electricity supply. The Kingdom has reserved 400MW from two large power generators.

Speaking to students at a graduation ceremony in Phnom Penh on Sunday, the prime minister said the government has approved to buy two power generators from Germany and Finland, each with a 200MW capacity to reserve for the capital’s power supply.

“A lack of water affected power generation this year. It has been a huge experience for Cambodia in addressing the challenges,” he said.

The prime minister previously said the Kingdom had an electricity shortage of 400MW. National utility company Electricite du Cambodge (EDC) has just signed an agreement to purchase 200MW of additional power from Laos.

Hun Sen said: “Next year there will not be any such problems if hydropower is not available. We still have oil and gas generators.”

The prime minister had previously announced that the Kingdom would import power ships from Turkey to compensate for the shortages, but the plan was later cancelled.

Electricity Authority of Cambodia (EAC) vice-chairman Ty Thany told The Post on Sunday that Cambodia had ordered two fuel-powered generators to be used during this year’s severe shortages.

“We hope that there will be no problem with electricity shortages,” he said, adding that the generators would only be used for reserve as they are expensive to run.

Cambodia is currently among the fastest electrifying countries in the world, with coverage reaching 89.1 per cent as of the end of 2017, a newly published World Bank report said.

The Kingdom has made significant progress in providing access to electricity, becoming one of four countries to have electrified at a rate of around eight per cent each year since 2010, said the World Bank’s Energy Progress Report 2019.

Cambodia electrified at a rate of 8.3 per cent annually between 2010-17, the report said.

The EAC’s 2018 annual report said Cambodia plans to increase its power supply to 2,870MW by this year, up from 2,650.26MW last year.

The Federation of Associations for Small and Medium Enterprises of Cambodia president Te Taingpor said past electricity shortage problems have caused the Kingdom’s SMEs to face a number of manufacturing issues.

“If this shortfall drags on to next year, it could have a negative impact on a daily business and also make entrepreneurs reluctant to invest.”

“I hope we will have enough electricity next year. At the same time, if we still have a shortage, we should be given sufficient prior notice to prepare in advance,” he said.

A 60MW solar power plant in Kampong Speu province is expected to be fully operational next month.

Kampong Speu provincial governor Vy Samnang said solar power station invested by Schnei Tec Co Ltd will have transferred 40MW of their power into the national network by early next month. A further 20MW may be ready in July.

“Because investment in the Kingdom is currently increasing strongly and exceeding forecasts, electricity supply across the country may not be fully settled at the moment,” he said.

Renewables

Suez plans plastic film recycling plant in Thailand

4 June 2019

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Thailand

Global waste and resources firm Suez has announced plans to build a 30,000 tonnes per year capacity plastic film reprocessing plant in Thailand.

To be built in the Bang Phli district near Bangkok, the plant will process polyethylene film collected from across the region. Construction works are expected to be completed by mid-2020.

An artist’s impression of the new plant to be built in the Bang Phli district near Bangkok

The plant will be equipped with an advanced water treatment system that minimises water usage and will meet the highest level of local environmental standards, Suez says.

Part of the energy used by the plant is powered by roof top solar panels to ‘further improve the site’s environmental footprint’, the company added.

It is hoped that the facility will contribute towards Thailand’s 2030 target to achieve 100% recycling of the plastic it uses.

Suez is also building a waste-to-energy plant in the country through a joint-venture agreement with WHA Utilities and Power Plc and Glow Energy Plc – named Chonburi Clean Energy.

Recycling

Commenting on the announcement of the plastics processing plant, Ana Giros, the company’s senior executive VP group in charge of the international division, said: “In Thailand two million tons of plastic waste are produced per year and only a quarter is recycled. As a leader in plastics recycling in Europe, Suez will fully utilise its technological expertise to support the country in meeting its objective of reducing plastic waste, thus contributing to oceans’ preservation.”

“As a leader in plastics recycling in Europe, Suez will fully utilise its technological expertise to support the country in meeting its objective of reducing plastic waste, thus contributing to oceans’ preservation.”

Suez

Suez operates a total of nine plastic recycling plants worldwide, with a total processing capacity of around 400,000 tonnes of material per year.

In 2018, Suez opened a facility in Maastricht, Holland, as a joint venture with the plastics and chemicals company LyondellBasell to process HDPE and PP plastics. Upon opening, the plant had the capacity to process around 25,000 tonnes of material (see letsrecycle.com story).

Other facilities include a plastic PET bottle recycling plant at Limay, Île-de-France, which has the capacity to produce around 30,000 tonnes of rPET pellets.

Electricity/Power Grid

Electricity sector needs accountability and transparency

4 June 2019

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Vietnam

Việt Nam raised its retail electricity prices in March after nearly two years without change, but this decision has received mixed responses from the public. Debates on the grounds for the price hike, transparency in tariff calculation and the change’s impact on the whole economy have been taken up on the floor of the National Assembly’s hearings in recent days.

The electrical power industry has played a pivotal role in a country’s economic development and energy security. Since 1750, the world has experienced three industrial revolutions, and even at dawn of the Industry 4.0 today, electricity remains a necessity for production and improvement of living standards.

In terms of market structure, electrical power is a special kind of product that involves a natural monopoly (which occurs because the high cost of infrastructure limits new entries into the market). Storage is also a challenge, so electricity must be generated at the same rate at which it is consumed.

The estimation of power generation, demand and tariff is important as any changes in power prices have multidimensional impacts on the economy and society. The State’s work in this sector is needed to diminish adverse impacts and ensure the power supply.

Việt Nam’s power demand surged over the last 20 years, averaging 10 per cent growth per year. As the economy continues to expand and living conditions improve considerably, electricity consumption is predicted to keep rising in the coming years.

Big issues

The country has been facing big issues in developing energy production. The world is demanding clean energy but the cost of producing such kind of energy is still high and Việt Nam has developed support policies to encourage investors to invest in renewable energy.

Other challenges include reforms to the sector and State management to increase competitiveness, and the search for technological innovations to reduce power demand and use energy more efficiently.

Moreover, Việt Nam is developing a digital economy which requires huge amounts of power but the amount of electricity needed to digitalise the economy has not yet been calculated.

Some studies have found that Việt Nam’s power policies are not attractive enough to encourage potential investors to jump into the industry. The Government has been said to be hesitant and little confused on how best to regulate the power industry. Though the country has a national energy development plan until 2035 with the target of developing a competitive energy market, implementation has not kept pace with the roadmap.

The industry is under pressure from many sides. The tariffs must be attractive enough to draw investment but should not cause unwanted impacts on the economy and society. Price regulation must ensure macroeconomic stability, low inflation rates and support for poor households.

In Việt Nam, power tariffs have almost doubled in the last decade with seven adjustments.

Since March this year, the average retail price for power has been raised by 8.36 per cent, from VNĐ1,720 (7.49 US cents) per kWh to VNĐ1,864 (8.03 US cents), excluding value added tax. Different pricing schemes continue to be applied for households and businesses.

Although people and businesses do not want prices to increase, the change was necessary after Việt Nam Electricity (EVN), the country’s sole power distributor, reported rising production costs due to increasing prices of inputs such as coal, gas and electricity imports.

According to the Ministry of Industry and Trade, the hike could lower Việt Nam’s GDP this year by 0.22 per cent and lift the consumer price index (CPI) by 0.29 per cent, but the inflation rate by end-year will be well in line with the Government’s target of below 4 per cent.

Việt Nam’s inflation rate in 2018 was 3.54 per cent despite the electricity tariff increasing by more than 6 per cent in the end of 2017.

EVN continues to support poor households with the equivalent of 30 kWh per month. The price hike also helped raise awareness among consumers of using electricity efficiently to protect the environment.

A technician from Quảng Bình Electricity Company – a member of Việt Nam Electricity (EVN) – checks power lines. — VNA/VNS Photo Đức Thọ

Sector reform

The roadmap for raising electricity tariffs is necessary to remove subsidies and make sure power prices closely follow the market, but these decisions must be made transparently.

Price hikes should be understood within the broader perspective of restructuring the whole power industry. The electricity industry has a natural monopoly but some sector fragmentation in power generation and retail could lead to more competition.

The national power development strategy lays out a roadmap for competitive generation and retail markets, but implementation of these markets has not kept pace with expectations.

The reform and transparency of EVN plays an important role, but information on the operation of the State-owned group such as divestment and non-core investments has not been widely available to the public.

EVN’s efforts in reducing transmission losses should be recognised. But it should review the current tariffs (the lowest rate of 50kWh/month is low compared to current living standards), the distance between each tariff, the calculation methods and support level for poor households.

This is not simply a story of increasing electricity prices but also a matter of accountability, transparency and sector reform. Việt Nam has been struggling to develop its energy industry and needs investment from many stakeholders due to a lack of State funds.

The World Bank estimates that Việt Nam needs to raise up to US$150 billion by 2030 to develop the sector. To attract private investors, raising power tariffs is not enough and the Government needs bold measures to reform the sector and possibly build an independent body to monitor and manage EVN to increase transparency and accountability. — VNS

Renewables

PSA Singapore Enters Smart Energy Partnership

4 June 2019

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Singapore

According to a statement, Singapore’s energy sector is evolving with the adoption of new energy storage systems and the harnessing of renewable energy sources such as solar power.

In order to support this progress, EMA is working with local research entities and enterprises to “catalyse R&D efforts” and create innovative solutions.

The new partnership formed by EMA and PSA Singapore aims to increase the eco-efficiency of port operations at the latter’s Pasir Panjang Terminal, a goal that will be achieved by reducing overall energy usage and carbon emissions.

Mark Sisson, AECOM, takes a fresh look at shore power and the potential benefits for containerships in a recent Port Technology technical paper

Also included in the organizations’ collaborative effort is a joint R&D grant call for innovative smart grid technologies and energy management solutions.

This initiative will involve the integration of renewable energy sources like solar power with smart control networks, enabling PSA Singapore to use electricity more intelligently for a much smaller carbon footprint.

Ngiam Shih Chun, EMA Chief Executive, said: “EMA is pleased to expand the portfolio of our industry partnerships. Today we are partnering both PSA and Shell Singapore to develop our energy sector in the areas of energy storage and in digitalization.

“Energy storage solutions are critical to support our clean energy ambitions by allowing us to better integrate solar energy. Digitalisation efforts will also play an important role in making our power systems smarter, more efficient and resilient.”

Ong Kim Pong, Regional CEO Southeast Asia at PSA International, also commented: “Sustainability plays a vital role in the development of our port. As we continue to expand with more automated electric cranes and equipment, power demand forecasts and energy monitoring will become increasingly important.

“Implementing smart grids and developing innovative energy solutions will enable us to better manage and optimise our energy usage, leveraging integrated intelligent real-time communications, Internet of Things, renewable energy storage and digital technologies to obtain substantial energy savings and reduce our carbon footprint.”

Renewables

Construction on 50MW wind power plant begins in Bac Lieu

1 June 2019

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Vietnam

Construction on a wind farm with a capacity of 50MW began in Vinh Hau A commune, the Mekong Delta province of Bac Lieu on June 1, as part of activities during the Vietnam Sea and Island Week and an Action Month for the Environment.

Covering a total area of 1,000ha, the Hoa Binh 1 plant is capable of generating 161,000MWh of electricity per year and built at a total cost of nearly 3 trillion VND (130.4 million USD) by the Hoa Binh 1 wind power JSC under the Phuong Anh Investment Trading and Construction Ltd.

It is expected to generate power by the fourth quarter of 2020.

Speaking at the event, Chairman of the provincial People’s Committee Duong Thanh Trung affirmed that the plant suits the locality’s development orientations, contributing to tapping local potential in a sustainable manner.

He said wind power plants in coastal areas, along with the 3,200 MW liquefied natural gas project, constitute one of the five development pillars in the province in line with the Party Central Committee’s Resolution No.36 on a strategy for the sustainable development of marine-based economy till 2030 with a vision to 2045.

The Vietnam Sea and Island Week and Action Month for the Environment are being held in response to the World Oceans Day and World Environment Day 2019.

Electricity/Power Grid

States, regions seek greater share of power

31 May 2019

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Myanmar

Chief ministers of several states and regions are urging more decentralisation and less bureaucracy to speed the way to a federal system for the country.

“We chief ministers are very active in inviting investments in our states and regions, but we are hampered by the central government. Without sufficient decentralisation, it will be hard to streamline and simplify the investment process,” U Zaw Myint Maung, chief minister of Mandalay Region, said this week at a workshop on boosting investment in northern Myanmar.

At the event, Salai Lian Luai, chief minister of Chin State, where only four townships are electrified, said that although the state has hydropower, the effort to bring power to more townships is delayed because of the need for central government approval.

“The challenge in the electricity sector is that regions and states can only authorise projects under 30 Megawatts, while those with higher output can only be carried out by the central government. The other problem is we can’t decide the price of the electricity generated. Only the central government can make those decisions. The process would be smoother and faster if the state governments had more authority,” Salai Lian Luai said.

Under the Myanmar Investment Law 2016, investment committees were established in every region and state.

The committees include representatives from government departments and are headed by the chief ministers. They have the authority to permit foreign investment of up to US$5 million, and local investment of up to K6 billion.

The 2008 Constitution lays out the powers of the regional and state governments, and the chief ministers say it gives too much authority to the central government.

“However hard the State Counsellor urges us to work with the union government, there’s still a gap. As long as centralisation exists, it will be harder for us to progress,” said U Zaw Myint Maung.

According to the Myanmar Economic Index report by the Asia Foundation, Myanmar has been gradually decentralising. In addition, national-level polices still play important roles, and state and regional governments are getting more involved in the process, the report said.

“As the country is moving towards becoming a federal democratic nation, the roles of states and regions are crucial in economic affairs. Meanwhile there are certain investments that we have permitted, but to give power to the regions is already one of Myanmar’s policies, so it can be assumed that the economic situation will change with the changing political landscape,” said U Aung Naing Oo, permanent secretary of Investment and Foreign Economic Relations.

Others

Malaysia’s Petronas posts higher profit; sticks to RAPID project timeline

31 May 2019

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Malaysia

KUALA LUMPUR, May 31 (Reuters) – Malaysia’s state energy firm Petronas said on Friday work at its $27 billion refinery and petrochemical project in the southern state of Johor had slowed due to an explosion last month, but stuck to its timeline of resuming operations by the year-end.

The company also posted on Friday a 9% jump in quarterly profit and warned of a challenging year ahead given volatility in oil prices.

Petronas is in the final stages of finishing the Refinery and Petrochemical Integrated Development (RAPID), a 50-50 partnership with Saudi Arabia’s state-owned Saudi Aramco.

An explosion and fire occurred at the plant’s atmospheric residue desulphurisation unit in April. The fire was contained within 30 minutes.

“Work will be continued towards achieving planned commercial operation date in the fourth quarter, although not at full capacity,” the company said in a statement.

Investigations on the incident are still ongoing, Petronas said.

First-quarter profit at Petronas, the sole manager of Malaysia’s oil and gas reserves and a key contributor to state coffers, rose to 14.2 billion ringgit ($3.39 billion) from 13 billion ringgit.

Company’s revenue rose 7% to 62 billion ringgit.

Total production volume for the quarter dropped 1.3% to 2.4 million barrels of oil equivalent (boe) per day due to lower crude production from Iraq. Sales of liquefied natural gas rose 6.7% to 8.45 million tonnes.

“The board expects the overall year-end performance of Petronas to be affected by the rising volatility of oil price and foreign exchange movement,” the company said.

The oil and gas industry will continue to operate in a challenging environment arising from market uncertainties and geopolitical risks, it said.

Last month, Petronas acquired a Singapore-based solar energy company as part of a strategy to move into renewable energy and chase high-growth business to complement its mainstay operations.

($1 = 4.1900 ringgit)

News Clipping

Recycling

Mark Sisson, AECOM, takes a fresh look at shore power and the potential benefits for containerships in a recent Port Technology technical paper

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