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Energy Economy

French to help finance Myanmar’s hydropower upgrades

1 May 2019

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Myanmar

Myanmar is set to receive a €35.7 million (K60.2 billion) loan from the French Development Agency (AFD) to upgrade to five hydropower plants, President U Win Myint said in a message to the Assembly of the Union (Pyidaungsu Hluttaw).

The term of the loan is for 13 years, with a seven-year grace period, at an interest rate of 0.68 percent, said Deputy Minister of Planning and Finance U Maung Maung Win.

The funds are expected to be used between this year and 2024 for heavy maintenance work and upgrades to the Ye Nwe, Mone Chaung, Zaung Tu, Kinda, and Thaphan Seik hydropower plants. After the upgrades, the plants are expected to be able to run at full capacity, raising power generation from 565 million kilowatt hours to 646 million kilowatt hours.

Due to the lack of heavy maintenance in the past, the plants had experienced some breakdowns Deputy Minister of Electricity and Energy U Tun Naing told the hluttaw.

“The five plants have been operating for between 10 and 30 years. As little heavy maintenance was performed in the past, there have been frequent faults in turbines, generators and control centres. So the need to upgrade the plants is pressing,” U Tun Naing said.

Of the total loan, €5.4million will be allocated to the Ye Nwe plant, €16.4millionto Zaung Tu, €2.4million to Kinda, € 6.5millions to Thaphan Seik, and €3.3million to Mone Chaung. The rest of the funds, some €1.7million will be used to hire a project consultant, he said.

The amount of foreign debt taken on by the Ministry of Electricity and Energy until last December 31, totals US$6202.36 million, with US$3026.79 million still outstanding, said U Maung Maung Win.

Separately, the Yangon Electricity Supply Corporation has requested approval to accept a 1.45 billion baht (K68.7 billion) loan from the Neighbouring Countries Economic Development Cooperation Agency of Thailand.

Bioenergy

Get on board with waste-to-energy plants, Zuraida urges critics

1 May 2019

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Malaysia

PUTRAJAYA: Putrajaya has urged critics of waste-to-energy (WTE) plants to be more receptive to the idea, even as the government moves to clean up the accumulated rubbish in the country.

Housing and Local Government Minister Zuraida Kamaruddin said some non-governmental organisations (NGOs) and other individuals did not have a good perception of the WTE.

WTE is a waste management facility where solid rubbish is burnt to produce electricity.

Noting that in the past, people thought negatively about incinerators, Zuraida said the technology had since advanced and the system was not something to worry about anymore.

“There are samples of WTE being placed, constructed and positioned in the middle of housing estates or cities. There is no issue actually. I hope people can learn to be more open about it.

“For the country to progress, with all the outstanding rubbish we have, I have to clean up that way,” she said in an interview held in conjunction with Pakatan Harapan’s one year in power recently.

Zuraida had previously stated that the usage of dump sites was expensive with land cost as one of the burdening factors, while WTE plants are cleaner, more productive and more economical.

Zuraida had said the transition to WTE would also enable the country to generate revenue through the production of renewable energy.

Earlier this month, the Kuala Lumpur Taknak Insinerator (KTI) movement questioned how Zuraida drew the conclusion that WTE initiatives offered cleaner, more efficient and more economical alternatives to landfills, without listening to public concerns.

It claimed Zuraida’s answer in Parliament that incinerators were less costly compared with landfills bordered on ignorance.

Elaborating on the matter further, Zuraida said the ministry planned to convert landfills into WTE plants.

“We just need to transform that. It is easier. We do not have to go through the DoE (Department of Environment) process. This is because, since it is already approved as a landfill, it can be approved for WTE,” she said.

On which landfills were being considered for WTE plants, Zuraida named Bukit Payung and Seelong (Johor), Jabi and Samling (Kedah) and Bukit Tagar (Selangor).

On accusations by KTI that she was turning a deaf ear over concerns against incinerators, Zuraida said she had engaged with them, and that she had met up with them in Parliament a few times.

“I sat down with them when I became minister. They came to see me first.

“They wanted to do a recycling programme, and I was on board with it. I asked them to come under the ministry’s National Community Policy, to do it with the community,” she said.

The PKR vice-president said while she has spoken on enhancing and increasing activities for recycling, the approach taken by the KTI was “a bit too slow”.

Zuraida said the group could carry out the recycling programme at a high middle income residential area, where people were more educated and willing and had more time to do it.

“But at the moment, I have so much outstanding rubbish, I have to clean up the country first. Let it be clean first, then we move on to recycling.

“We will come to a point of a complete circle economy, where rubbish can be turned into money, and that is where the recycling programme comes in.

“So it is not true I have turned a deaf ear. I do not have a deaf ear,” she said.

Zuraida also said the government was planning to amend the Local Government Act 1976 for heavier penalties to be imposed to curb illegal waste operations.

She said at present local councils could only impose a maximum fine of RM300.

“So, they can fine the culprits RM300 over and over again, it would not matter. This is why I am going to amend the Act 171 (Local Government Act 1976), where a higher fine of RM500,000 can be imposed,” she said.

Zuraida said they were now gathering feedback from other ministries on the amendment, which she admitted was taking too much time.

“Being in the government, there is too much bureaucracy. It is not ready yet. It is now making its rounds at the ministries for their feedback. That is taking time. But I believe it can be done by this year,” she added.

Renewables

Thai crew unleashes 260MW Hanuman

30 April 2019

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Thailand

Energy Absolute Public Company has brought online the 260MW Hanuman wind farm cluster in Thailand.

The development comprises five sub-projects and features Siemens Gamesa G126-2.5MW hardware.

Finnish engineering consultancy Poyry provided owner’s engineering services during installation and commissioning of Hanuman.

Poyry’s work included reviewing and inspecting the turbine supplier’s site management plans, progress reports and commissioning and testing reports.

It also monitored installation and commissioning and reported to the owner, attending system walk downs to identify punch list items, as well as re-inspections after remedial actions by the turbine supplier.

Electricity from the wind farm will be sold to the Electricity Generating Authority of Thailand under a power purchase agreement.

Poyry business director, wind power said: “As one of the biggest wind power projects in south-east Asia, the Hanuman project sets an example to south-east Asian nations on how to substantially increase the domestic renewable energy production in order to cut greenhouse gas emissions, to diversify national energy production portfolio, and to reduce long term operating cost of the power system.”

Electricity/Power Grid

Thailand approves power plan, expects capacity to reach 77 GW by 2037

30 April 2019

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Thailand

BANGKOK, April 30 (Reuters) – Thailand’s cabinet on Tuesday approved a national energy plan that looks to add 56 gigawatts (GW) of power by 2037, a senior official said.

The Power Development Plan 2018-2037 (PDP2018), which maps out the long-term energy needs and capacity of the country, expects Thailand to add 56,431 megawatts of new capacity by 2037 to reach a total capacity of 77,211 megawatts, Nathporn Chatusripitak, government spokesperson told reporters.

Thailand currently has a power generation capacity of 40,000 megawatts, with 20,000 megawatts to go offline over time, he said.

By 2037, 53 percent of total capacity would be from natural gas, 20 percent from renewable sources, 12 percent from coal and the remainder from other sources including imports, Nattaporn said.

The previous plan from 2015 estimated natural gas would make up 40 percent of total Thai energy by 2036 and coal up to 25 percent.

Electricity/Power Grid

Deputy minister stresses need to approve all budgets to ensure enough power supply

30 April 2019

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Myanmar

Electricity generation is not a task that can be carried out overnight, and the government needs to approve all the budgets the Ministry of Electricity and Energy has demanded, said Deputy Minister Dr Tun Naing.

The deputy minister’s remark came after the question of a member of parliament at a parliamentary session of the Lower House held in Nay Pyi Taw on April 29.

MP Nay Myo Htet for Kyauktada Township Constituency questioned how many megawatts were used in March and April in 2019 and whether there was any measure to ensure that there is no power cut in summer.

“It is also necessary to all the amounts of budget our ministry has demanded. Electricity cannot be generated overnight,” said Dr Tun Naing.

He said that it took about seven or eight years to build a power station, adding that Myanmar’s electricity demand would be met only after efforts of 5 or 10 years for power generation.

“It is not true there is no power cut in other countries. Even in Singapore, it took days to bring back power after power cut. In one case in the United States, there were about two weeks of power cut. In our country, we can make efforts to bring back electricity in hours after it went out,” the deputy minister commented.

As dam water deceases now, electricity is being provided on a quota basis this summer, he added.

Energy Cooperation

Marina and DOE join to promote green shipping

30 April 2019

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Philippines

The Maritime Industry Authority (Marina) and the Department of Energy (DOE) are promoting more sustainable and eco-friendly fuels for Philippine-registered ships to implement the global 0.50% sulphur cap in 2020.

Guided by the International Convention for the Prevention of Pollution from Ships (MARPOL Convention) of the International Maritime Organization (IMO), the Marina and DOE discussed the specifications of the global 0.50% sulphur cap with petroleum industry stakeholders, oil importers, and shipping industry partners.

The state agencies are also threshing out concerns to prepare for possible challenges that may emerge due to the new regulation.

Annex VI of the MARPOL Convention, which the Philippines has ratified in 2018, requires all ships in non-emission control area (ECA) zones to set limit on the sulfur content of fuels from 3.50% to 0.50% by January 1, 2020.

To date, the Philippines is a state party to all annexes of the MARPOL Convention.

Marina – Shipyards Regulation Service (SRS) Director Engr. Ramon Hernandez acknowledged stakeholder concerns such as the need for existing Philippine-registered vessels to undergo retrofitting to be able to utilize sustainable and eco-friendly fuels.

The Marina and DOE assured the stakeholders that they will formulate a comprehensive plan for the implementation of the global 0.50% sulphur cap in 2020 by identifying other alternative sources of eco-friendly and affordable fuels, among others.

Next month, the MARINA and DOE will meet with the Department of Finance (DOF), the National Economic and Development Authority (NEDA), and the Department of Environment and Natural Resources (DENR) to ensure that the Philippines will be able to comply with the Annex VI of the MARPOL Convention.

Oil & Gas

DOE: Ruling on Malampaya, COA to entice investors to explore PHL oil resources

30 April 2019

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Philippines

THE favorable arbitration ruling on the $1.1-billion tax case between the Malampaya consortium and the Commission on Audit (COA) would entice investors to pursue exploration activities in the country.

“The Department of Energy welcomes this latest development in the International Chamber of Commerce [ICC] arbitration case. We have always upheld the position that the tax regime for petroleum service contracts is legal and valid. This victory would go a long way in giving exploration and development activities in the country a much needed and long overdue boost as investors will now have renewed confidence in our upstream gas industry,” Energy Secretary Alfonso G. Cusi said in a text message on Monday.

The DOE has been urging investors to “explore, explore, explore” to help the country build its power supply. He said last year, the country was grossly trailing behind its neighbors in terms of petroleum exploration and development activities.

“It is high time we step up. We need to attain energy security and sustainability to minimize our vulnerability to global oil price shocks,” Cusi said during the launch of a new round of energy-contracting exploration program.

The ICC decided in favor of the Malampaya consortium, with a unanimous vote of 3-0. The ICC is a global organization that provides services to resolve disputes in international business, with headquarters in Paris, France. Service Contract 38, which governs the Malampaya project, provides for dispute resolution under the arbitration rules of the ICC.

The Senate Committee on Energy, the proponent of the Drill Drill Drill program, said there is no longer a legal impediment for investors to undertake oil and natural gas exploration now that the arbitration court in Singapore has finally resolved the tax case between Shell Philippines Exploration BV (SPEX) and the government.

“The multi-billion tax case has been a big specter that discouraged foreign players from conducting petroleum explorations in the Philippines over the past several years and drove away investments in high risk, capital-intensive, and technology-intensive sectors. With the case now behind us, it is high time for the government to aggressively pursue a ‘Drill, Drill, Drill’ program, so that we can tap these oil and gas resources and use them to achieve Philippine energy independence and pave the way for the country to become an energy exporting powerhouse,” Sen. Sherwin Gatchalian said.

The Petroleum Association of the Philippines (PAP) also said the ruling will revive the oil and gas exploration industry.

“I hope the government will react positively. This, of course, will be of great help to the exploration industry,” PAP chairman Rufino Bomasang said.

Shell Philippines Exploration B.V. (SPEX), which leads the Malampaya consortium, and the DOE, will meet soon.

“The Malampaya joint venture can confirm that the ICC arbitration tribunal has issued its decision, which we are currently reviewing with our legal counsels. At this stage, we cannot provide details due to the confidentiality of the proceedings, but the joint venture will be engaging the Department of Energy in due course,” Spex said.

Other members of the consortium are Chevron Malampaya LLC, with a 45-percent stake and state-owned PNOC Exploration Corp. with the remaining 10 percent.

The case stemmed from a COA ruling that overruled the petition of the Malampaya consortium that income tax was already imputed in the government’s 60-percent share in the Malampaya royalties. The tax, it argued, was deductible from the government’s share of the Malampaya earnings.

The COA, in its April 6, 2015 decision, upheld its findings that the income taxes of the service contractors could not be assumed by the national government in its 60 percent share in the Malampaya proceeds and thus ordered the consortium to pay the national government P53,140,304,739.86 in taxes.

It stressed that is no provision in the law stating that the income tax of the contractors forms part of the share of the government.

On a per year basis, COA said the under collection amounted to P2,409,817,191.46 in 2003; P2,335,402,961.38 in 2004; P2,832,586,038.93 in 2005; P7,901,265,361.42 in 2006; P11,272,523,434.55 in 2007; P15,826,563,356.86 in 2008; and P10,562,146,395.26 in 2009.

In September 2015, SPEX filed an arbitration case against the National Government with the Singapore International Arbitration Center. In July 2016, SPEX filed another arbitration case in the International Centre for the Settlement of Investment Disputes Arbitration (ICSID) in Washington against the National Government regarding its tax dispute.

Renewables

AC Energy to start Vietnam wind projects in 2020

30 April 2019

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Vietnam

AC Energy, Inc. expects to break ground early next year on several wind projects in Vietnam with its three existing partners in the regional neighbor in time for the feed-in tariff deadline in November 2021, its top official said.

“It could be as big as 250-300 megawatts (MW), it could be as small as 30 MW. That’s a big range,” Eric T. Francia, president and chief executive officer of Ayala Corp.’s energy company, told reporters in an informal gathering in Vietnam during the weekend to celebrate the completion of a solar project.

“We have over 250-MW, expandable to 350 MW with AMI,” he said, referring to Vietnamese partner AMI Renewables Energy Joint Stock Co.

In 2017, AC Energy formed a platform company with AMI Renewables to build renewable energy plants in Vietnam, including a 352-MW wind project in Vietnam’s Quang Binh province.

“We could also potentially do solar in there, so puwede kaming mag-hybrid (we could go hybrid), but we haven’t really finalized that yet,” Mr. Francia said.

The platform company became AC Energy’s second in Vietnam after it partnered with BIM Group of Vietnam to develop 330 MW of solar power in the country.

In November last year, AC Energy announced its international unit had invested in Singapore-based renewable energy company The Blue Circle Pte. Ltd. through a 25% ownership acquisition as well as co-investment rights in the latter’s projects.

AC Energy and The Blue Circle are to jointly develop, construct, own and operate the latter’s pipeline of around 1,500 MW of wind projects across Southeast Asia, including about 700 MW in Vietnam. Its partner developed and constructed one of the first wind farms in Vietnam.

The company announced back then that the partnership plans to develop around 100 to 200 MW of wind energy projects out of The Blue Circle’s project pipeline in Vietnam.

“We really focused on solar because of the tighter deadline, it’s June 2019. Now we did 410 MW between BIM and AMI — 330 [MW] with BIM [and] 80 [MW] with AMI,” Mr. Francia said, referring to the solar projects AC Energy completed with its Vietnamese partners with a feed-in tariff rate of 9.35 US cents.

“We don’t own all of that 410 [MW],” he said, adding that about half of that capacity is attributable to AC Energy.

“Now the focus shifts to wind because the deadline now is 2021. It takes about a year, a year-and-a-half to build a wind farm, so we have until early 2020 to start construction. Between now and early 2020, basically in the next 12 months, we really need to get the projects to shovel-ready stage,” he said.

Mr. Francia had said that he was seeing a potential 1,000 MW of wind projects attributable to AC Energy in Vietnam. He earlier said that the company was in talks with BIM to partner with the latter’s 300-MW wind project.

He declined to identify which of the wind projects would be completed first.

“We don’t know yet which of the 1,000 MW we’re gonna do. That’s just the potential based on the pipeline that we see. It really depends on getting the permits, getting the financing,” he said. “We have two years.”

Mr. Francia said the feed-in tariff used to be 7.80 US cents for wind, but was adjusted a few months ago to 8.50 US cents to encourage more investments. He said the “meaningful adjustment” in the tariff, which guarantees a fixed electricity rate and a regular revenue stream, made wind projects viable in Vietnam.

“Definitely, we’re very bullish with Vietnam. That’s gonna be one of our major international markets,” he said.

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