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New law to lure more investments for clean energy sources in PH

8 April 2019

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Philippines

A newly-signed law will secure better investment climate for clean energy sources in the country and guarantee power needs to three million Filipino households that still do not have access to electricity, a senior administration lawmaker said Monday.

(Ali Vicoy / MANILA BULLETIN)

Marinduque Rep. Lord Allan Jay Velasco, chairman of the House Committee on Energy, made this assurance as he lauded President Rodrigo Dutert for recenlty signing the Energy Virtual Ine Stop Shop (EVOSS).

Velasco said that a result of the enactment of the EVOSS law, the country will be ready for huge investments on clean energy sources that will put an end to the electricity woes of many Fillipinos, especially those who live in geographically isolated areas.

The new law, pursued strongly by the energy panel, proposes to streamline the process of granting permits on power generation, trnsmission and distribution of power projects.

As a result, the government must push for the development of more environment-friendly and sustainable sources like solar and wind power, he stressed.

The EVIOSS law is envisioned to lure more foreign or local improvements in the power sector, regardless of technology, by eliminating red tape, which has hurting the cost and ease of doing business in the country, the Marinduque solons said.

”As our population grows, it’s not only important to tap new sources of energy to meet the demand,” explained Velasco, touted as the next speaker of the Lower House.

He added: “We should also make it a priority to harness renewable sources of energy that are clean and cheap.”

Government has reported that power consumption across the three main islands in the Philippines increased four percent to 94,370 gigawatt hours (GWh) in 2017 from the previous year.

In Luzon, power use rose to 3.58 percent ot 69.625 Gh2 from 67,221; Visayas jumped 5.8 percnt to 12,942 GWh from 12,232 GWh; and Mindanao moved upward by 4.04 percent to 11,803 GWh from 11,345 GWh.

Citing a 2018 study conducted by the International Energy Consultants, a think-tank based in Australia, Velasco noted that the Philippines ranked second in the top five countries with the highest power rates after Japan in Asia-Pacific region.

“What the country needs is renewable sources of energy to meet the future demands for electricity. We should add more windmills, solar panels and hydro electic energy producers. These are the areas where we need to attract investments and capital, Velasco stated.

Renewables

Laos urged to address dam project impacts

8 April 2019

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Lao PDR

Cambodia, Thailand and Vietnam have urged fellow Mekong River Commission member Laos to address cross-border and environmental impact issues following consultations on its Pak Lay hydropower dam project.

On Thursday, the MRC member countries agreed on a statement on the proposed project, after they concluded a six-month prior consultation process.

The statement called on Laos to make all necessary efforts to address and mitigate potential adverse cross-border impacts of the project by taking into account recommendations provided in a technical review report issued after the prior consultation process.

Le Duc Trung, chairperson of the MRC Joint Committee for 2019 said the statement demonstrates the committee’s accountability to the four countries’ leaders and people in the basin.

“It also reflects stakeholders’ recommendations resulting from regional and national consultations on how to avoid, minimize and mitigate potential transboundary impacts from the Pak Lay development and operation,” he added.

Watt Botkosal, deputy secretary-general of Cambodia National Mekong Committee, declined to comment.

In March, the Cambodian government found that Laos needed to further identify transboundary environment impacts and put in place proper mitigation plans and measures.

Cambodia also recommended that Laos should study issues relating to hydrology, sedimentation, dam safety, navigation, water quality, aquatic ecosystems, fisheries and fish passage as well as the socio-economic impact of the dam project.

According to the MRC statement, Thailand also asked Laos to pay special attention to potential socio-economic and environmental transboundary impacts from the proposed project which affects communities in eight Thai provinces.

Vietnam suggested that Laos should invest more time and resources on additional data collection and improvement of applied impact assessment to address possible impacts across borders in a more comprehensive manner.

“It also recommended development of a comprehensive program for monitoring the impacts of the project during construction and operation stages,” the statement said.

Lao representative Chanthanet Boualapa told the meeting his country is committed to addressing the issues raised during the meeting and welcomed future engagements to improve the project.

“The Lao government is committed to addressing your key concerns and welcomes further engagement, information sharing, site visits and joint monitoring to ensure that the project does not cause significant transboundary impacts and provides benefits to all parties,” he said.

An Pich Hatda, MRC Secretariat CEO, yesterday said an approved joint action plan will create an avenue for related stakeholders, the Lao government and the developer to exchange information and feedback throughout the development of the dam project and its operation.

According to the MRC, the Pak Lay Hydropower Project is located in Xayaburi province in Laos and is the fourth out of 11 hydropower projects planned for the mainstream of the lower Mekong River.

It’s been estimated that Powerchina Resources Ltd has invested about $2.1 billion in the project to build, operate and eventually transfer the dam to the Lao government.

Electricity/Power Grid

Energy sector powering growth in Laos

8 April 2019

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Lao PDR

VIENTIANE, April 8 (Xinhua) — Laos’ energy sector is set to boost its installed capacity to about 9,152.9 megawatts (MW) in 2019, once 12 more power plants kickstart commercial operations.

According to the Ministry of Energy and Mines, the 12 projects, which are currently under construction, will have an additional installed capacity of 1,959.94 MW. Of this, 1,575 MW will be sold to Thailand and the rest 384.94 MW will be used for local consumption, local daily Vientiane Times reported on Monday.

So far Laos has 57 power plants (1MW and larger) that are commercially operational with an installed capacity of about 7,193 MW, which generate about 36,935.23 GWh yearly.

The 57 plants include 49 hydropower plants, a lignite plant, five solar plants and two plants that generate electricity from waste.

The 57 plants include 10 that are the responsibility of state-owned Electricite du Laos (EDL), with an installed capacity of about 211.70 MW that can generate about 831,42 GWh annually.

Another 10 projects are under EDL-Generation Public Company (EDL-GEN), with 699MW of installed capacity that can generate about 3,145.5GWh annually.

The remaining 37 projects belong to independent power producers (IPP), and have an installed capacity of 6,282.40MW, and can generate about 32,958.31 GWh annually.

Laos expects to generate about 33,874 million kWh worth about 16,575 billion kip (some 1.9 billion U.S. dollars) in 2019. It aims to export about 25,625 million kWh worth about 1.45 billion U.S. dollars, while local consumption will be about 6,287 million kWh.

Export markets include Thailand, Vietnam, Malaysia, Cambodia, and Myanmar.

Thailand requires about 9,000MW by 2030, of which Laos can currently generate 4,000 MW, which will rise to 7,000 MW in 2020. Vietnam needs 5,000 MW, of which Laos can currently generate 300 MW, which will increase to 1,000 MW in 2020.

Laos exported 100 MW to Malaysia and will export about 300 MW in 2020. It exported 10 MW to Cambodia which will rise to about 200 MW in 2020. It also supplies about 5 MW to Myanmar and expects to push that up to 100 MW in 2022.

The energy sector has upgraded its installed and generating capacities with the completion of many new power plants in recent years. Most of the investment comes from foreign companies who make power purchase agreements with specific markets or buyers.

Electricity/Power Grid

Chinese construction rush aggravates Cambodia’s electricity shortage

8 April 2019

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Cambodia

Amid chronic blackouts, the Cambodian People’s Party government is getting poor marks for energy planning. © Reuters

PHNOM PENH — Regular power blackouts are plaguing Cambodia where the national grid is starved by drought-stricken hydropower plants and stressed by booming demand from heavy Chinese investment in the construction sector.

Power shortages have caused weeks of scheduled cuts, stifling businesses, frustrating residents, and sending the price of generators skyward.

“Work just stops,” Em Sokyenn told the Nikkei Asian Review. His Phnom Penh print shop has suffered power cuts lasting hours. These were first announced in mid-March and are expected to continue until the end of the dry season in May.

“Last year, there were blackouts but not as bad as this,” he said. “It affects business — work we are supposed to finish in a day takes two or three.”

Prime Minister Hun Sen said in a recent speech that an El Nino-induced dry spell has reduced hydropower generation, and that the problem has been compounded by a sharp increase in construction. The combination has thrown out the government’s energy planning, he said.

According to Hun Sen, the first two months of 2019 saw a 700% increase in construction year on year. “When construction goes up, the need for power also increases enormously,” he said.

The building surge has seen almost 6,000 projects valued at more than $11 billion approved in the past two years, according to the Ministry of Land Management, and there is no sign yet of a slowdown.

“I don’t think the construction boom has even started,” Tom O’Sullivan, chief executive of Realestate.com.kh, an online property site, told Nikkei. He said Chinese investors are driving growth in the condominium segment while local buyers are buying into other property developments.

James Hodge, associate director of CBRE Cambodia, a real estate company, said condominium stock in Phnom Penh is expected to increase about 120% this year, with some 30,000 completed units available. “A lot is still under construction,” he said.

On Friday, Hun Sen said a plan to lease a 200 megawatt Turkish floating power station to help plug the 400mw energy deficit had been cancelled.

Government spokesman Phay Sophan told Nikkei that the Turkish plant could not be delivered in time to meet the “urgent need.” He also mentioned contractual disagreements, including on pricing.

Cambodian Prime Minister Hun Sen, left, and Chinese Premier Li Keqiang. With backing from China, Cambodia has invested heavily in hydropower to meet rising power demand. © Reuters

As stop gaps, there are plans to buy more electricity from Thailand, Laos, and Vietnam, and also from private power suppliers.

Ty Norin, a secretary of state for mines and energy, told Nikkei that an additional 55mw has already been secured from Thailand, and negotiations with other neighbors continue. He said additional power needs would be taken on board in future plans. “We will not allow this to happen in 2020,” he said.

Investment in power generation comes as the government attempts to cut electricity rates that are among the highest in Southeast Asia and have long been a complaint among consumers and investors.

Brett Sciaroni, the U.S. chair of the International Business Chamber of Cambodia, called the situation a “double whammy” for investment. “First of all, it’s more expensive than our neighbours, and second you have frequent power outages,” he said. “I don’t know how aware the international business community is of the situation, but it needs to be rectified if we are going to sustain the same high level of foreign direct investment that we have enjoyed over the years.”

While urging patience, Hun Sen has lashed out at critics. He threatened to deny electricity to those who suggest the power cuts are a deliberate ploy to justify more hydropower dams, which are controversial for their environmental impact and displacement of poor communities.

With backing from China, Cambodia has invested heavily in hydropower to meet rising power demand, which rose from 490mw in 2008 to 2,650mw last year.

Hydro last year provided about half of Cambodia’s energy needs, with coal making up 34%, and imports forming most of the rest, according to official figures. In a statement discussing energy solutions on Friday, the government said plans for a 80mw hydropower project in the western province of Pursat, would move ahead.

It also pointed to three solar power projects in the pipeline, including a 60mw facility coming on line soon in Kampong Speu near Phnom Penh. Overall, however, renewables are expected to contribute less than 1% of the energy supply in 2019.

Courtney Weatherby, a Southeast Asia research analyst at the Stimson Center, an independent U.S. policy think tank, said the shortages should spur moves to diversify power supplies and speed up the introduction of renewables, particularly given Cambodia’s vulnerability to extreme weather, such as droughts and floods, brought on by climate change.

“This is not the only country, but I think it is a fair assessment to say that it has put too many eggs in the hydropower basket and just hasn’t diversified supply enough,” Weatherby told Nikkei, noting the current crisis was foreshadowed by a severe drought in 2015.

“Realistically having more than half of your supply coming from one energy source, which can be hit in the way it’s being hit right now by a shock to the system, is not resilient.”

Others

Cambodia steps up fight against climate change

8 April 2019

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Cambodia

PHNOM PENH, 8 April 2019 – Considered one of the most vulnerable countries in the world to the effects of climate change, the Royal Government of Cambodia is taking major steps to improve its resilience and reduce its disaster risk with support from the UN Office for Disaster Risk Reduction.

To build Cambodia’s resilience and protect its economic and social gains from climate-induced disasters, the country is upgrading its disaster risk management system and a key part of this effort is the development of the new Strategic National Action Plan for Disaster Risk Reduction 2019 – 2023. The strategy development kicked off with a multi-sectoral workshop in Phnom Penh that brought together line ministries, the UN system, NGOs and representatives of civil society.

“Cambodia has made impressive development gains, and we need to protect these. The new DRR strategy requires the full engagement and commitment of all sectors in Cambodia to ensure our development goals are not delayed by disasters”, said Dr. Nhim Vanda, Senior Minister in Charge and Permanent Vice President of NCDM. “

Economic growth in Cambodia over the last decade has helped lower the poverty rate sharply from 48 per cent in 2007 to 14 per cent in 2014. However, many of these gains are being threatened by the country’s vulnerability to climate change as Cambodia is likely to experience an increase in temperatures, longer droughts, and more frequent tropical storms, according to a USAID report.

Cambodia is already experiencing more flooding in its wet season and longer droughts in the dry season, both of which threaten the livelihoods of 80 per cent of Cambodia’s population who rely mostly on subsistence crop production. In 2016, the country experienced a severe drought that Prime Minister Hun Sen declared as the country’s worst disaster in 100 years, and in 2018 wide-scale floods affected more than 100,000 families

The country is currently in the midst of another drought and a surge in high temperatures which have affected more than 20,000 hectares of rice fields in 13 provinces, according to Cambodia’s National Committee for Disaster Management (NCDM).

To ensure this new national strategy is focused on reducing disaster risk and aligned with the Sendai Framework for Disaster Risk Reduction – the global roadmap for reducing disaster losses by 2030 – the government organized a national workshop on 5 April in Phnom Penh with technical support from UNDP and UNISDR.

“Having a national strategy that is developed in cooperation with all relevant ministries is critical to mobilizing a whole-of-government response,” said Ms. Loretta Hieber Girardet, Head of UNISDR Asia-Pacific, who is leading a joint mission with UNDP to Cambodia. “It is equally important to engage with civil society and stakeholders representing vulnerable groups, such as the poor, women and persons with disability, through an active national platform for DRR.”

Involving all relevant ministries early in the national strategy development process, through the formation of working groups or a joint governance structure, will help ensure that DRR is also integrated into sector specific strategies.

To promote resilience for all, the inclusion of different vulnerable groups in the development and implementation process of the DRR strategy is critical to meeting the needs of those most impacted by disasters. By fully participating in the process of developing and implementing the DRR strategy, representatives of vulnerable groups can convey their needs and concerns to national authorities, and at the same time, serve as conduits for the dissemination of risk communication and guidance to hard-to-reach populations. As a result, vulnerable groups, who are disproportionately impacted by disasters, become more resilient and better-prepared to deal with disasters, thus less likely to lose their livelihoods.

Renewables

Hydroelectric and Solar announced as alternative to cancelled Turkish floating power plant

8 April 2019

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Cambodia

The government has cancelled a contract it signed last week to bring a powership from Turkey to cope with the current energy deficit.

Speaking at a cabinet meeting on Friday, Prime Minister Hun Sen announced the agreement signed with Turkey to rent a 200-megawatt floating power plant has been cancelled due to “technical issues”.

According to Phay Siphan, the government’s spokesman, the main reason the contract was terminated is that the powership would take too long to reach the Kingdom’s shore.

“Our prime minister decided to cancel the contract because the powership would not have reached here on time to help with the power cuts,” he said.

“On top of that, some of the clauses in the agreement were not acceptable. The price that they wanted to charge was too high, so the government decided to use that money to build a power plant instead,” he said.

Mr Siphan said the need for energy was not so urgent anymore because Cambodia has already received some energy from Vietnam, Laos and Thailand and because it had started to rain in the last few weeks.

During the cabinet meeting on Friday, Prime Minister Hun Sen approved plans by SPHP (Cambodia) to invest in a new hydroelectric dam in Pursat province’s Pursat river, as well as plans by Schnei Tech to build solar farms in Kampong Chhnang and Pursat.

The dam in Pursat will be able to produce 80 MW and will be built on a build-operate-transfer (BOT) basis with a total investment capital of more than $231 million. The company has been granted a 39-year concession for the project.

The solar farms approved on Friday will each have a 60 MW capacity. They will be built on a build-own-operate (BOO) basis with an investment of more than $58 million.

The government also approved Schnei Tec’s expansion plans at an existing 60 MW solar farm in Kampong Speu province.

Renewables

Cambodia announces hydropower, solar projects amid widespread electricity shortages

8 April 2019

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Cambodia

Cambodia’s government on Friday approved a hydropower dam and solar energy plant projects in a bid to ease the strain on the country’s electricity grid, which has been unable to meet supply demand, leading to nationwide outages over the past several weeks.

In a statement, the Council of Ministers said SPHP (Cambodia) Co. Ltd. had been approved to invest in an 80-megawatt hydropower dam in Pursat province, while Cambodian firm SchneiTec Co. Ltd. was given permission to build three 60-megawatt solar energy plans in Pursat, Kampong Chhnang and Kampong Speu provinces.

The US$231 million hydropower dam will be built as part of a 39-year concession, while the solar energy plants will each cost US $58 million and be built as part of 20-year concessions, the statement said.

Council of Ministers spokesman Phay Siphan told a press briefing that the power projects would benefit Cambodia “technically, economically and socially.”

“Cambodia will have local sources of energy and reusable fuel consumption—clean and at affordable prices,” he said.

“The projects will also employ thousands of people during the construction phase and as a result of ecotourism,” he added, without elaborating.

Phay Siphan said that the government expects the plants to generate US$292 million annually.

While the projects will help to ease Cambodia’s power shortages in the future, they will do little to alleviate widespread blackouts over the past several weeks that the government has attributed to high temperatures affecting the ability of dams to generate power and high levels of public consumption.

Officials said recently that the grid is around 400 megawatts short of what is needed to supply the country during the dry season.

The power cuts are expected to last through May and have caused some to question whether they are being orchestrated by the government to drum up public support for proceeding with the controversial Stung Cheay Areng hydropower dam in Koh Kong province, despite environmental concerns that shelved the project in 2015.

Cambodia’s Prime Minister Hun Sen on Tuesday told officials to “cut off electricity” to the homes of those who claim the government is behind the outages, adding, “Let them light torches.”

Alejandro Gonzalez-Davidson, founder of local environmental watchdog Mother Nature, told RFA’s Khmer Service he is concerned that construction of the dam announced Friday will destroy the forest in Pursat “like they have in Koh Kong and Stung Treng” provinces, because the government will use the project as an excuse to log the area.

He called on officials to provide details of the proposed dam, noting that past projects have lacked transparency.

Meanwhile, Hun Sen announced Friday that the government has canceled plans to lease a Turkish floating power plant that would have produced an additional 200 megawatts of electricity for Cambodia, saying the vessel would not arrive in time to alleviate the nation’s power shortages.

The Khmer Times quoted Ty Norin, secretary of state at the Ministry of Mines and Energy, as saying that Thailand and Laos will “sell us more power” instead.

Ty Norin said Cambodia will increase imports of electricity from Thailand to 200 megawatts from 120 megawatts, while Laos will deliver 50 megawatts instead of 40 megawatts.

“So, in total, we get 90 megawatts more,” he said.

Cambodia currently imports 170 megawatts from Vietnam.

Cambodia’s Mines and Energy Ministry has said that Cambodia produced 2,650 megawatts of energy in 2018—50 percent of which came from hydroelectric dams.

Electricity/Power Grid

Total power consumption hits over 3,600 MW in April

7 April 2019

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Myanmar

The country’s total power consumption hit a record high of 3,609 megawatts (MW) in April, up over 250 MW compared with the same period last year, according to Deputy Minister for Electricity and Energy Dr. Tun Naing.

The annual power production reached 2,097 MW in 2014, 2,362 MW in 2015, 2,743 MW in 2016, 2,790 MW in 2017 and 3,358 MW in 2018.

In late March, the power production reached a record high of 3653.9 MW.

Currently, Myanmar can produce about 3,800 MW. The country’s power demand is increasing at a rate of 19 per cent every year. The ministry plans to produce an additional 3,000 MW in next three years as the annual power consumption will reach between 300 and 500 MW.

Last year, hydropower accounts for 57 per cent of the total power production and the power production through thermal energy, for 43 per cent.

Yangon consumes nearly 1,500 MW, Mandalay, over 500 MW, Nay Pyi Taw, over 150 MW, other regions, nearly 1,500 MW.

About 6.33 million out of 10.877 million households have no access to electricity. In December, 2018, 4.79 million households (44 per cent) have access to power while 6.087 million households (56 per cent) are in need of electricity.

According to the figures in August, 2018, 1.3 million out of 1.58 million households in Yangon Region have electricity access and 0.62 million out of 1.32 million households in Mandalay have no access to electricity.

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