Vietnam has set a target of raising renewable energy production from 58 billion kWh in 2015 to 101 billion kWh in 2020, 186 billion kWh in 2030, and 452 billion kWh in 2050.
Under the renewable energy development strategy of Vietnam towards 2030 with a vision to 2050 that was approved by the Government in 2015, the country aims to increase the ratio of electricity from renewable sources from 35 percent of total electricity output in 2015 to 38 percent in 2020 and 43 percent in 2050.
According to Nguyen Van Vy, Vice Chairman of the Vietnam Energy Association, Vietnam has abundant potential for renewable energy thanks to a long coastline and weather conditions favourable for the development of hydro, wind, solar, biomass, geothermal power and bio-fuel.
Research shows that Vietnam can generate about 8,000MW of small-scale hydropower, 200MW of wind power, 3,000MW of biomass power, and 35,000MW of solar power in 2030.
In the mainland, Vietnam can produce about 30GW of wind power, along with 100GW from offshore wind farms.
As of the end of 2018, Vietnam had 285 small hydropower plants with total output of 3,322MW, along with 8 solar power plants with 243MW in total output and 10 biomass power plants (212MW).
The Vietnam Electricity has signed power purchase agreements (PPA) with more than 100 solar power projects, two of which have become operational with combined capacity of 86MW.
So far, electricity generation from renewable sources, excluding medium- and large-scale hydro power plants), has accounted for 2.1 percent of the country’s electricity output.
Do Duc Quan, Vice Director General of the Electricity and Renewable Energy Authority under the Ministry of Industry and Trade said that as of June 2019, total installation capacity of solar, wind and biomass projects reached about 2.5GW, and 2GW more of solar power will be added.
Quan said that in order to encourage renewable energy development, the ministry has submitted to the Government proposals on various mechanisms such as Feed-in-Tariff mechanism, as well as incentives for investors in access to credit, corporate income tax, land use, and PPAs.
Besides, experts suggested Vietnam should create a transparent investment environment and a clear policy roadmap with long vision to help investors make decision on long-term investment, he added.
However, Quan pointed out that the rapid growth of renewable energy recently has also created a number of challenges such as high investment cost, pressure on electricity grid infrastructure and large demand for land.
According to a report of the Vietnam Electricity, renewable energy development has also faced problems in the operation system. Due to a lack of official guidelines on payments, the EVN has yet to purchase households’ rooftop solar power. Alongside, big investment is also another problem.-VNA
Looking for a job in renewable energy? Malaysia might be just the place for you.
The International Renewable Energy Agency (IRENA) this week named Malaysia as the region’s biggest solar photovoltaics (PV) employer with a total of more than 54,300 people working in the industry last year – up from 40,300 in 2017.
Malaysia are sixth globally in the list of top solar PV employers while the only other ASEAN country to make it into the top-10, Vietnam, is in ninth spot. Indonesia and Thailand are the biggest employers in the liquid biofuels sector while the Philippines is ASEAN’s biggest wind energy employer according to the IRENA report titled ‘Renewable Energy and Jobs – Annual Review 2019’.
The report states that the various renewable energy sectors such as solar PV, hydropower, liquid biofuels and wind energy hired 11 million people globally in 2018 – a rise from the 10.3 million recorded in 2017. Offering 3.6 million jobs in 2018 – or a third of the total renewable energy workforce – the solar PV sector is the industry’s top employer.
Source: IRENA
Countries like Malaysia, Thailand and Vietnam were responsible for a greater share of growth in renewables jobs last year, allowing Asia to maintain a 60 percent share of renewable energy jobs worldwide.
Using data from the Sustainable Energy Development Authority (SEDA), IRENA noted that foreign direct investment (FDI) has turned Malaysia into a major solar PV manufacturer for export markets – and around 17,000 of Malaysia’s solar PV jobs are in component manufacturing. Overall, IRENA estimates Malaysia’s renewable energy workforce to have grown from 87,400 jobs in 2017 to 98,500 in 2018.
While renewable energy industries have remained relatively concentrated in a handful of major markets such as China, the United States (US) and the European Union (EU), Southeast Asia has emerged as a key exporter of solar PV panels. Vietnam hosts solar PV facilities owned by 11 different manufacturers, Malaysia has nine and Thailand six.
Key Malaysian policies
Progress in Malaysia’s green energy has been made possible by the government’s concerted efforts to develop the industry.
In his speech at the 25th ASEAN Labour Ministers Meeting last November, Malaysia’s Prime Minister Dr Mahathir Mohammad said that there was a need to raise awareness on green jobs as well as up-skilling, reskilling, grading and certification on related programmes. He pointed out that employment in ASEAN’s green economy grew by 3.2 percent in the previous two years compared with its overall economic growth of five to six percent – making for almost 1.4 million new green jobs created during that period.
The country is yet to reap the fruits of the Green Technology Master Plan which was approved by the Malaysian Cabinet in October 2017. This roadmap is aimed at helping the sector achieve US$43 billion in revenue and creating more than 200,000 green jobs by 2030. The country’s then Energy, Green Technology and Water Minister told Malaysian media that green technology is the fastest growing sector in the country and his ministry would help those involved with Islamic financing – which provides lower interest rates.
Another key initiative by the Malaysian government is the Green Technology Financing Scheme (GTFS) which was introduced in 2010 to provide easier access to financing for green entrepreneurs. Up until October 2017, the scheme channelled US$810 million to more than 302 green projects with the potential to generate US$1.56 billion worth of investment, create over 5,000 jobs and prevent emissions amounting to 3.513 million tonnes of CO2e (carbon dioxide equivalent).
Low-carbon economic growth
Employment opportunities are a key consideration in planning for low-carbon economic growth, and as the IRENA report notes, governments have prioritised renewable energy development to not only reduce emissions and meet international climate goals but also in pursuit of broader socio-economic benefits.
“Beyond climate goals, governments are prioritising renewables as a driver of low-carbon economic growth in recognition of the numerous employment opportunities created by the transition to renewables,” said Francesco La Camera, Director-General of IRENA.
“Renewables deliver on all main pillars of sustainable development – environmental, economic and social. As the global energy transformation gains momentum, this employment dimension reinforces the social aspect of sustainable development and provides yet another reason for countries to commit to renewables.”
“As we celebrate the World Environment Day, we announce that we are developing 1,000 MW of renewable energy projects in the next 5-7 years, joining the inexorable shift to renewable energy and the adoption of sustainable practices in everything we do,” recently appointed President and CEO Atty. Ray C. Espinosa said.
“MERALCO is committed to developing large-scale renewable energy projects that can deliver competitive electricity for our customers, without any requirement for subsidy or support, while keeping environmental stewardship and sustainability as top priorities in our business,” Espinosa added.
The renewable energy arm of Meralco, MGEN Renewable Energy Inc. (MGreen), was established as part of the firm’s plan to bring in additional support to the Philippines’ growth and ensure the availability of green and cost-competitive power supply in the coming years.
“We are working on several renewable energy prospects and we recognize the significant reduction in the development cost, particularly for large-scale solar and wind over the past years. Notwithstanding the ongoing requirement for new reliable baseload generation to support the fast-growing Philippine economy, we believe that the time is right to focus on building our green energy capacity and we intend to be a key player in this expanding sector,” MGen President and CEO Rogelio L. Singson said.
“MGen, through MGreen, will continue working on the realization of our project opportunities, and will work in partnership with established developers to maximize our growth potential,” he added.
The official explained that the plan is in line with MGEN’s growth aspirations, mainly focused on advancing renewable energy prospects and utilization of high efficiency, low emission (HELE) technology for baseload power plants.
“We will continue to work with the energy industry, government and other stakeholders to serve the country’s energy needs while ever mindful of our greater responsibility to society and the planet,” Mr. Singson concluded.
A recent report from the ministry noted that these seven projects will include two 230kV transmission lines with lengths of 86.4 km and 82 km in the provinces of Oudomxay and Bokeo, and one project in Huaphan with a length of 82 km.
Another five projects are for 115kV transmission lines in the provinces of Xayaboury (with a length of 90 km), Bokeo (50 km), Borikhamxay (33 km), and Vientiane (33.8 km).
Five construction and installation projects in different provinces and Vientiane were completed last year, including two 115kV transmission lines in Xayaboury, two 230kV transmission lines in Vientiane, Borikhamxay and Vientiane province, and one 230/115kV transmission line in Borikhamxay and Vientiane.
In the same year, the government also approved the development of five more power grid projects and they include one 115kV transmission line in Xayaboury, one 230/500kV transmission line in Vientiane and three 500kV transmission lines in the provinces of Savannakhet, Saravan and Khammuan.
So far, there are 62 substations that are under Electricite du Laos’ (EDL) management, including eleven 230/115kV transmission lines, fifty 22kV lines, and one T-off 230kV line. The power grid includes 500kV transmission lines with a length of 629 km, 230kV lines with a length of 3,557 km, 115kV lines with a length of 6,859.47 km, 22kV lines with a length of 32,088 km and 0.4kV lines with a length of 19,856 km.
Currently, there are many national power grid and substation development projects that are under construction. The government is investing millions of dollar on the projects to ensure that more families have access to electricity. The government expects to ensure that 95 percent of families nationwide can access electricity by next year, and authorities were able to cover more than 93 percent of families last year.
Recently, the government and a Chinese company broke ground for a transmission line project in Vientiane. The new 500kV and 230 kV transmission lines will be installed in Dongphosy village in Hadxaifong district to ensure more people in Vientiane have sufficient power now and in future. The new power lines will carry electricity from hydro-power dams for use in Vientiane and for sale to other countries. The project is managed by four districts in Vientiane – Pakngum, Xaythany, Xaysettha, and Hadxaifong.
When completed, the 500/230 kV transmission line project will support the nation’s electricity generation. The project will create a sustainable electricity supply for the development of Vientiane and increase the capacity of the national grid. This is an important project under the master plan, which aims to develop the electricity network in Laos until 2020 in order to provide adequate and sustainable electricity supply.
This project will also be a basic and important part of economic development in the south of Vientiane, and is essential for agriculture, industry, services and other sectors.
Currently, there are many families in some provinces that cannot access electricity, including those in Phongsaly, where only 66 percent of families can access energy, Huaphan (about 77 percent) and Xekong province (about 72 percent).
Singapore-based renewable energy firm Sunseap Group Pte has secured a green loan to support the roll-out of 37 MWp of rooftop solar photovoltaic (PV) projects in its home country.
Sunseap obtained a SGD-43-million (USD 31.7m/EUR 28.1m) loan from United Overseas Bank Limited Ltd (SGX:U11), the company said Thursday. The funds will be used to install PV systems on the rooftops of commercial, industrial and government entities. The 37-MWp capacity will be distributed between 210 sites.
Sunseap has already installed a 270-kWp PV array at the headquarters of Singaporean restaurant franchisor Sakai Holdings Ltd (SGX:5DO). The system is capable of generating up to one-third of the building’s power needs.
In the South East Asia and Pacific markets, Sunseap operates more than 150 MWp of projects. Another 350 MWp of projects is in the pipeline in Australia, Cambodia, China, India, Malaysia, Philippines, Taiwan, Thailand and Vietnam, according to Sunseap’s website.
YANGON — Myanmar needs to invest twice as much and implement projects three times faster to address its rapidly growing demand for electricity, the World Bank said.
The figures presented in its Myanmar Economic Monitor, a biannual report released on Tuesday, indicated that Myanmar’s electricity supply will further deteriorate without a steep increase in investment by domestic and foreign suppliers.
The country’s electricity consumption will increase at an average annual rate of 11%, according to the report. Peak demand is expected to reach 12.6 GW by 2030, up 3.5 times from the current level. To meet this demand, Myanmar will need $2 billion per year to build new power plants and repair existing ones.
A structural problem stands in the way: Electricity rates are too low to cover the projected funding costs, and constructing new power plants would mean eventually selling more electricity for less than it costs to generate, thus piling up higher losses.
“The financial position of the power sector has deteriorated significantly over the past few years due to a combination of higher costs and unchanged tariffs requiring large subsidies,” the World Bank said in the report. “The weighted average retail tariffs are 40% below cast cost recovery level.”
In 2014, Myanmar was able to sustain lower tariffs because the low-cost hydro power plants were sufficient to fulfill most of the power demand in the country. But that demand grew rapidly over the past few years, and the supply shifted to gas-fired power plants which were more flexible but costlier.
The losses at the Electric Power Generation Enterprise rose significantly, projected to be 750 billion kyats ($492 million) in fiscal 2018.
The government of Myanmar expects foreign companies to invest in power generation in the country. But negotiations have been deadlocked over the setting of purchase prices, according to people familiar with the matter.
The Ministry of Electricity and Energy in January 2018 authorized Total of France and Siemens of Germany to build a large-scale liquefied natural gas-fired power plant. But negotiations to set purchasing prices for the electricity produced have yet to conclude.
Two other LNG projects authorized at the same time — 1,390 MW project by China’s Zhefu Holdings and the local Supreme Group, and a 388 MW project by TTCL of Thailand — are in a similar situation.
“Tariff increases are crucial to put the sector back on a path of financial vitality,” the World Bank said. But the government is reluctant to raise electricity charges ahead of a general election in late 2020.
Myanmar’s electricity supply has been on the wane for years now. In Yangon, the country’s biggest city, there have been rolling blackouts of four to six hours a day since late April.
Many manufacturing plants and commercial facilities generate their own power. But “the price of diesel fuel, which powers our generator, soared tenfold in May,” a representative of an office building operator said.
Without a political willingness to raise electricity rates so that utilities can earn enough money to invest in upgrades and make repairs, more planned blackouts can be expected during the next dry season, or whenever demand for power peaks.
JAKARTA, June 20 (Reuters) – Indonesia’s Energy and Mineral Resources Ministry has proposed revising regulations governing mining rights to include higher royalty payments and earlier applications for permit extensions.
Under the proposals, royalties on coal sales to central government would rise to 15% from 13.5%, Bambang Gatot Ariyono, the ministry’s Director General of Coal and Minerals, told parliament on Thursday.
The change in the royalty rate would be imposed when coal miners shift from so-called contracts of work to special mining permits which is required under the 2009 mining law.
The revised government regulations are currently awaiting approval from the president, Energy Minister Ignasius Jonan told parliament, without saying when the new rules would be applied.
The change in the mining rules would increase the government’s share of coal mining revenue to 79% from around 68% currently, Ariyono said.
“The holders of coal contracts of work can have permit extensions without going through a bidding process, if they agree on better state revenue,” Ariyono said.
The ministry is also revising mining rules to allow miners to submit for a mining permit extension within five years before it expires, up from two years currently.
It’s the epitome of a closed circuit: the utility helping power one of Southeast Asia’s biggest cities is building electric cars, batteries and charging stations for the nascent market, and then supplying the juice to keep them all running.
Thailand billionaire Somphote Ahunai envisions his Energy Absolute Pcl as a titan of EVs even though there are less than 1,500 battery-powered vehicles in the country. That’s about 0.004% of registered vehicles through December.
Somphote Ahunai
Source: Energy Absolute Pcl
Southeast Asia has been slow to adopt passenger EVs because of high sticker prices and a predilection for two-wheelers, but Thailand’s government sees them as a way to ease Bangkok’s air pollution and fortify an automotive industry generating about 12% of gross domestic product. Energy Absolute is using subsidies and tax breaks to put 5,000 EVs on the road by next year, backed by 700-plus charging stations. It’s also planning a $3 billion factory to make lithium-ion batteries.
“The trend is clear: it’s time for Thailand to stop being complacent and pursue higher technology to drive economic growth,” said Somphote, the utility’s founder and chief executive officer. “EV technology opens up new opportunities for success by new players.”
Energy Absolute, Thailand’s second-largest electricity generating company by market capitalization, unveiled its Mine Mobility passenger EV at this year’s Bangkok Motor Show and immediately received more than 4,500 orders. The car is priced at about 1.2 million baht ($38,000), cheaper than a comparable Nissan Leaf or Kia Soul EV.
Yet the car will head out on the highway just as EV showrooms start getting crowded with foreign models.
Carmakers are chasing growth in Southeast Asia as combined sales in China, the U.S. and Europe decline amid the trade war and Brexit. The Bloomberg World Auto Manufacturers Index is down more than 15% in the past 12 months.
The Mine Mobility passenger EV.
Photographer: Brent Lewin/Bloomberg Economics
BYD Co., the Chinese manufacturer backed by Warren Buffett, said last year it planned to deliver 1,100 cars to Bangkok as part of a deal with the government to become the biggest supplier of pure EVs.
BMW AG, Nissan Motor Co. and Daimler AG’s Mercedes Benz unit all announced plans to produce and assemble EVs locally, researcher BloombergNEF said.
Energy Absolute also will try to overcome local preferences for cheaper motorcycles and scooters. Thais buy about 2 million motorcycles a year, according to statistics compiled by BNEF.
“EVs will be a business that provides new growth for the company,” said Suwat Sinsadok, a utilities analyst at Finansia Syrus Securities Pcl in Bangkok. “This is the right business strategy, and they’re getting into it at the right time.”
Asean Auto Sales
Thailand joins Indonesia as million-vehicle market in 2018
Source: Gaikindo
Energy Absolute markets the Mine Mobility as the first EV designed and built in Thailand. The five-seat hatchback can travel as many as 200 kilometers (124 miles) on a single charge, according to the company.
That’s less than a Tesla Inc. Model 3 or BYD e6 but enough to convince a group of five taxi unions to order 3,500 cars for metropolitan Bangkok. The group chose Energy Absolute because it promised the earliest delivery.
Thailand’s government sees EVs as a way to ease Bangkok’s air pollution.
Photographer: Taylor Weidman/Bloomberg
“We’ve been trying to go electric for the past two years,” said Theppanom Phinsuwan, the group’s representative. “We want to be first to the cars because we think EV is the way the world is heading.”
Using EVs would cut drivers’ expenses by half, increasing their profit and allowing them to pay off their car loans sooner, Theppanom said.
Taxi drivers typically spend between 500 and 600 baht per day running a gas guzzler like the ubiquitous green-and-yellow Toyota Corolla Altis. Charging an EV would cost about 200-300 baht.
Taxis are an initial target for Energy Absolute.
Photographer: Brent Lewin/Bloomberg
Car-service providers—such as taxi and rental-car companies—are the initial targets for Mine Mobility, said Thanapat Suksuthamwong, the subsidiary’s managing director. There’s no better way to showcase the technology than to have people who drive long distances each day do it, he said.
“Public and private fleet operators have the potential to drive the uptake of EVs,” said Caroline Chua, a BNEF analyst covering renewable energy.
The batteries inside Mine Mobility cars will come from a lithium-ion battery plant now being built. If the factory reaches full capacity, it would catapult Thailand into third place globally in production.
Energy Absolute rivals Tesla in trying to integrate all stages of the EV life cycle: electricity generation, battery production, car manufacturing and charging-point installation. Tesla owners can recharge their cars at home with power generated by solar panels and use batteries made with Panasonic Corp.
An Energy Absolute charging station, one of 400 around Bangkok.
Photographer: Brent Lewin/Bloomberg
Tesla doesn’t have a sales operation in Thailand, and the few models seen are delivered from places like Hong Kong, meaning they’re subject to import taxes that can double the sticker price.
Thailand is Southeast Asia’s first country to offer incentives for EV manufacturers and to reduce taxes on sales of their cars. Companies can get corporate tax breaks for eight years, exemptions from import duties on machinery and parts, and reductions in excise taxes.
That combination of policies and incentives is the most advanced in the region, according to BNEF. Indonesia said June 19 it will scrap taxes on imports of electric and hybrid vehicles by month’s end.
Home Advantage
EVs made in Thailand benefit from lower tax rates, resulting in lower prices.
Source: Electric Vehicle Association of Thailand
Energy Absolute has three EV models planned—the midsize Mine Mobility promised for next year, and then a cheaper compact and a pricier sports car. It’s building a 200 million-baht factory that can assemble as many as 10,000 cars starting later this year.
Yet there’s still a long road ahead to reach that volume, considering there were just 1,454 registered EVs—including buses and motorcycles—in the country as of December. By comparison, China is projected to sell triple that amount just in passenger EVs every day this year, according to BNEF calculations.
Charging stations are displayed on the EA Anywhere app.
Photographer: Brent Lewin/Bloomberg
“Our goal is to introduce EV cars to the Thai market,” said Amorn Sapthaweekul, Energy Absolute’s deputy CEO.
Energy Absolute has about 400 charging stations around Bangkok and plans to install another 300 this year. It wants to have at least one charging point every five kilometers.
The EA Anywhere app allows EV drivers to locate and reserve spots for charging.
Even as those domestic plans take shape, Energy Absolute plots its expansion as nearby countries—including Indonesia, Vietnam, Malaysia and the Philippines—set targets for adopting passenger EVs. Laos and Myanmar also are of interest.
“Thailand will be the leader of EV technology in this region,” Somphote said. “We’re first, and that should give us a head start to develop the technology.”
