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  • Electricity/Power Grid
9 January 2019

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  • Indonesia

JAKARTA – Indonesia is juggling between two options as it moves closer to setting regulations on the adoption of electric vehicles.

The impending outcome is set to benefit Japanese car giant Toyota or South Korea’s Hyundai Motor and European carmakers such as BMW.

The Joko Widodo administration is throwing its support behind green vehicles as it seeks to reduce the country’s reliance on imports of fossil fuel and also tap its abundant nickel reserves. Nickel is a key material for making lithium-ion batteries.

Ministers are debating, according to a government source, whether Indonesia should adopt a pure electric vehicle regime from the outset or start first with hybrid electric vehicles (HEVs), which do not require charging stations as they are powered by a conventional internal combustion engine.

Industry Minister Airlangga Hartarto, it is said, prefers a gradual shift by using HEVs. These do not place too heavy a financial burden on the government, which would otherwise have to build charging stations and ensure that power plants have ample capacity to meet an expected surge in demand.

Energy and Mineral Resources Minister Ignasius Jonan, however, is opposed to the HEV option and instead wants the adoption of pure electric vehicles, also called battery electric vehicles (BEVs), the government source, who spoke on condition of anonymity, told The Straits Times. BEVs utilise chemical energy stored in rechargeable battery packs.

“The debates have been relatively intense. Discussions also touched on the subsidies given to hybrid electric cars in advanced countries that were recently revoked because they did not give significant impact on reducing emissions because their main source of energy is still fossil fuel,” the source said.

Observers expect a BEV regime to benefit Hyundai, which has been successful in playing catch-up in the electric vehicle segment.

However, Toyota, whose vehicles make up about a third of auto sales in Indonesia, is lagging behind in the global electric vehicle race on account of its scepticism about battery life and user convenience.

Indonesia is set to issue a presidential regulation on electric vehicles, dangling a range of tax incentives, including cuts in value-added taxes, to encourage sales and the development of a domestic electric car industry.

Anticipating this, Hyundai is gearing up to announce its maiden electric vehicle investment plan in Indonesia, according to a source with knowledge of the plan.

“The impending regulation is like a battle between Japanese and non-Japanese automakers in Indonesia,” said an analyst with Jakarta-based equity stock brokerage Mandiri Sekuritas who asked not to be named.

  • Bioenergy
9 January 2019

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  • Vietnam

Huynh Kim Tuoc, director of the Saigon Innovation Hub (SIHUB), said that de-centralised waste processing, in which waste would be processed on a smaller scale spread out over the city, would be less polluting than centralised facilities, which exist in fewer areas with larger volumes of waste.

Ichiro Hatayama, chairman of the MILAI Group, a Japanese technology research and development company, said the city currently has two waste burial sites where waste is transported, and the vehicles used to transport the waste produce a large amount of carbon dioxide (CO2).

SIHUB is working with MILAI Group to transfer the group’s 6R-MOT, an organic waste processing technology, to Vietnamese partners.

The technology can turn waste to energy more efficiently than traditional power generation from burning waste (which is high in moisture and requires oil for burning).

With 6R-MOT technology, electric vehicles would be used to transport waste. The waste would then be dried, carbonised and gasified to be used by gas engines to generate power, Hatayama said.

The electricity would be used to charge the vehicles, forming a closed loop with no CO2 emissions, he said, adding that fertilisers can also be created through the process.

The technology also offers greater flexibility by allowing a wide range of productivity ranges (from 100 kilos to 25 tonnes per machine every day), and can be used in a wide variety of locations in rural or urban areas.

According to SIHUB, waste from food accounts for 83 percent to 88.9 per cent of solid waste in the city.

The city has 26 waste collection facilities where waste is transported for pre-processing before being taken to treatment facilities.

Vietnam spends around VND2 trillion for waste transporting and processing annually.

More than 8,000 tonnes of waste are treated per day in HCM City. Much of it is buried, which takes a long time to process and causes pollution.

Organic waste is also processed into compost fertilisers and biogas, which also takes up a lot of space and a long time to process.

The city is offering favourable policies such as lower land rentals and subsidised interest to encourage firms to invest in waste-to-energy treatment facilities.

  • Others
9 January 2019

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  • Vietnam

HCM CITY– A work plan for 2019 to help HCM City review its climate change policies and update action plans was agreed at the final workshop of a Japan International Cooperation Agency technical co-operation project.

The project, to “support the planning and implementation of nationally appropriate mitigation actions in measurement, reporting and verification procedures” (SPI-NAMA) in HCM City, aids preparations for a new climate change action plan focusing on building energy efficiency, strengthening the capacity of the city for GHG inventory development and considering low-carbon technology for the transport sector.

At the workshop, the city’s Department of Natural Resources and Environment and Japanese experts reported the results of their technical work done in 2018 under the HCM City component.

Within the scope of the SPI-NAMA, since early 2018 the Japan International Cooperation Agency (JICA) has increased co-operation with the city.

The activities in HCM City during 2018 contributed to preparations for upstream policies in the local context and provided practical lessons learnt for further advancing its policy goals.

For example, a joint study by the city and JICA identified large greenhouse gas (GHG) mitigation potential by building energy-efficient buildings and recommending further actions based on the good practices of Tokyo city.

Support for developing a city-level GHG inventory with quality assurance under the project provides sound scientific evidence for establishing a mitigation target in future.

A study of seaports also showed potential for GHG reduction and economic benefits, and provided a framework for monitoring reporting and verification to be replicated in other areas.

Jun Ichihara, chief advisor to the SPI-NAMA project, said the planned activities would focus on estimating future GHG emission trends and emission reduction potential in the city by applying a model developed by Japanese research institutions and universities, determining priority mitigation programmes and actions and analysing policy options to promote the programmes and actions.

Murooka Naomichi, senior representative at the JICA Vietnam Office, said: “With the current frequent flooding [in the city], which has become more serious due to climate change impacts such as sea level rise, the city government needs to take action to safeguard the city and its people.

“It is essential that the city continues to provide strong leadership as a role model for other municipalities and provinces in Việt Nam for sharing best practices and lessons learnt on strong climate policies.”

Furthermore, the city’s experience will be reflected by the Ministry of Natural Resources and Environment in its future policies to empower non-state stakeholders in implementation of the Paris Agreement.

The workshop yesterday was organised by the Ministry of Natural Resources and Environment, the city Department of Natural Resources and Environment and JICA.—VNS

  • Others
9 January 2019

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  • Vietnam

NDO/VNA – The fifth Vietnam-Japan Environment Policy Dialogue was held in Hanoi on January 9 by the Vietnamese Ministry of Natural Resources and Environment (MoNRE) and the Japanese Ministry of the Environment.

Speaking at the event, MoNRE Deputy Minister Vo Tuan Nhan spoke highly of the efforts by the Japanese ministry in cooperating with and supporting Vietnam in human resources development, and in helping the country deal with issues on environmental management policies and climate change response.

Cooperation with Japan in environmental protection has created opportunities for Vietnam to learn from the country’s experience in addressing issues related to environmental management, Nhan stated, adding that climate change response will be a main task of the ministry in 2019 and the following years.

Japanese Vice Environmental Minister Takaaki Katsumata said that during the 45 years of diplomatic ties, Japan and Vietnam have cooperated with each other in many fields, including the environment.

The Vietnam-Japan Environmental Policy Dialogue enters the fifth edition, while the Vietnam-Japan Environmental Week is being held for the first time from January 9-11, he stated, adding that both sides will exchange views on climate change and waste management, and put forward solutions to address these issues and step up cooperative activities.

This year, they will continue consolidating their relations and boosting collaboration in the fields of environment and climate change through cooperation programmes and projects on policymaking, green growth, pollution control, and waste and wastewater management and treatment.

The MoNRE proposed that the Japanese side maintain cooperation and share its experience with Vietnam in making policies on climate change adaptation and greenhouse gas emission reduction.

  • Coal
9 January 2019

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  • Vietnam

HÀ NỘI — Deputy Prime Minister Trịnh Đình Dũng asked the Việt Nam National Coal – Mineral Industries Holding Corporation Limited (Vinacomin) to ensure sufficient coal supply and seek measures to improve coal quality in 2019.
Speaking at Vinacomin’s conference on Wednesday to review 2018 business results and develop orientations for 2019, Dũng said that coal demand was increasing, especially for power generation, which was estimated at 58 million tonnes this year, 90 million tonnes in 2025 and 130 million tonnes in 2030.
“Vinacomin must strive to ensure enough coal supply for socio-economic development,” Dũng said.
In addition, focus must be placed on improving coal quality through applying modern technologies in production as well as on protecting the environment, Dũng said.
He also urged Vinacomin to improve the efficiency of its bauxite projects with focus on environmental protection and promoting local socio-economic development.
Vinacomin’s general director Đặng Thanh Hải said that as coal production was more difficult, the company this year would renovate production technology, strengthen automation to ensure labour safety, improve productivity, reduce cost and enhance product competitiveness for sustainable growth.

In 2019, Vinacomin targeted to reach a production output of 40 million tonnes, revenue of VNĐ128 trillion (US$5.6 billion) and average monthly salary of VNĐ11.3 million, from VNĐ10.8 million in 2018. It estimated total coal consumption demand at 42 million tonnes in 2019.

Vinacomin’s report showed that the company achieved positive business results in 2018 with all indicators exceeding the targets.

Coal production in 2018 reached 35.96 million tonnes, equivalent to 107 per cent of the target for the full year. Sales of coal in the domestic market were estimated at 38.7 million tonnes while exports totalled 1.8 million tonnes.

Aluminium production was at VNĐ1.31 million tonnes, 170,000 tonnes higher than 2017. Vinacomin’s electricity output totalled 9.4 billion kWh, accounting for nearly 5 per cent of the country’s total electricity output.

Vinacomin earned VNĐ121.7 trillion revenue in 2018, seven per cent higher than the target. Its export revenue was estimated at $780 million, 36 per cent higher than the target.

Its profit in 2018 doubled the target to reach VNĐ4 trillion and VNĐ1 trillion higher than 2017. Vinacomin contributed VNĐ16 trillion to the State budget last year.

The company also focused on restructuring in 2018, collecting VNĐ235.9 billion from divesting out of non-core businesses. — VNS

  • Electricity/Power Grid
8 January 2019

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  • Vietnam

From now to 2030, the demand for electricity will continue to grow at a high level, the report said.

The electricity sector will need to ensure 265 to 278 billion KWh by 2020 and 572 to 632 billion KWh by 2030.

The growth rate in the 2021-2030 period will be 8-8.5 per cent.

Tran Dinh Nhan, general director of EVN, said the country’s power grid system was unevenly distributed in three areas.

Most of the renewable energy plants are located in the north and central areas of the country, Nhan said.

EVN said it would deploy management measures to make electricity usage more economical and efficient.

The corporation has started construction of 500KV lines at Quang Trach-Vung Ang, Quang Trach-Doc Soi and Doc Soi- Pleiku 2. These projects will help connect Quang Trach Electricity Centre to the national power grid.

They will play an important role in supplying power for the South and will strengthen the transmission of the 500KV power grid.

Deputy Prime Minister Trinh Dinh Dung said that southern Vietnam consumed 90 billion KWh of electricity last year, 47 per cent of the usage in the entire country, while the region only provides 35 per cent of the country’s electricity output.

The power shortage situation in the South will continue in upcoming years due to the slow construction progress of power projects in the area, Dung said.

EVN forecasts that after 2021 the southern area will lack 1.2-1.6 billion KWh per year.

If coal-fired thermal power plants such as Long Phu 1, Hau River 1, BOT Duyen Hai 2 are not completed on schedule, the southern area will lack 7.2-7.5 billion KWh per year.

According to an EVN representative, only seven coal-fired thermal power plants are under construction, with total capacity of 7,860MW, while the total capacity of all thermal power projects is 26,000MW.

  • Electricity/Power Grid
8 January 2019

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  • Vietnam

Hanoi (VNA) – The National Power Transmission Corporation (EVNNPT), a subsidiary of the state-owned Vietnam Electricity (EVN) group, transmitted 184.5 billion kWh of electricity in 2018, up 11.03 percent from the previous year.

The statistics were released by EVNNPT General Director Nguyen Tuan Tung at a meeting in Hanoi on January 8 to review the firm’s performance last year.

He said the corporation has ensured the safe and stable operations of the nationwide transmission system, contributing to EVN’s efforts to supply sufficient power for socio-economic development and people’s daily needs.

Notably, the network’s operation has been substantially improved, with many projects to build and repair transmission facilities having been completed in recent years to address the transmission overload, Tung noted.

However, he also admitted certain problems, elaborating that the overload was still recorded in some areas. The 500kV north-south power lines are currently under strain as they will have to carry a huge power volume to serve the soaring demand in the southern region until 2020 and beyond, which may lead to higher power losses and breakdown risks, Tung said.

Meanwhile, the increase of renewable power plants joining the national grid from this year onwards will also affect the operation of transmission facilities, Tung added.

The General Director said numerous measures will be taken to continue ensuring the safe and stable operations of the transmission system.

EVNNPT has set the target of 203.2 billion kWh of electricity transmitted in 2019, up 10.15 percent from last year.–VNA

  • Renewables
8 January 2019

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  • Vietnam

PV Power, the country’s second largest power producer, will list on the Ho Chi Minh bourse this month with a market capitalization of $1.5 billion. The Ho Chi Minh Stock Exchange (HoSE) has approved that the firm lists 2.34 billion shares (trading code POW) on January 14 at VND14,900 (64 cents) per share. This would bring the market capitalization of PV Power to VND34.9 trillion ($1.5 billion).

PV Power finished its last transaction on UPCoM, the market for unlisted public companies, on December 27 at VND16,000 (69 cents) per share.

PV Power was established in 2007 with 100 percent capital from the state. The company finished equitization in the middle of last year with a charter capital of VND23.42 trillion ($1 billion).

State-owned oil and gas giant PetroVietnam remains PV Power’s largest stakeholder, with 79.94 percent of its charter capital. Foreign investors currently own 14.3 percent. The company is subject to a foreign ownership cap of 49 percent.

PV Power produces and sells electricity. It also imports and distributes coal and operates five electricity plants. It is the second largest power producer in the country after national utility Vietnam Electricity.

In the 2016-2018 period, PV Power’s revenues were VND28-30 trillion ($1.2-1.29 billion), 96 percent of which came from selling electricity.

As of September 30, 2018, its total asset value was VND61.4 trillion ($2.64 billion) and its equity was VND26.55 trillion ($1.14 billion).

Its dividend rate for last year is expected to be 3 percent and is set at 6 percent this year.

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