News Clipping Archive - Page 1203 of 1232

Renewables

Blockchain tech is taking on renewable energy trading in Singapore

12 November 2018

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Singapore

Key Points

Companies in Singapore can now engage in renewable energy certificates trading on a blockchain-powered system from utilities provider SP Group.
The idea behind the asset is that firms seeking to offset their non-green energy production can purchase RECs from a company producing excess green power.
The use of a blockchain is more than a gimmick, SP Group says, because it will allow for better transparency and lower costs in power trading.

Blockchain, the technology underpinning cryptocurrency bitcoin, has been recommended and theorized for uses across a broad spectrum of sectors and countries. Now, one Southeast Asian city-state is putting the tech to work in reshaping its energy industry.

In Singapore, companies can buy and sell so-called renewable energy certificates (RECs) that represent a unit of green energy production from the likes of wind or solar power. The idea is that firms seeking to offset their non-green energy production can purchase RECs from a company producing excess green power.

It’s a system similar to carbon trading that takes place in many localities, and, as of last week, companies can now engage in their REC trading on a blockchain-powered system.

That’s more than just a gimmick, according to utilities provider SP Group, which launched the new platform: It will allow for better transparency and lower costs in power trading because it reduces the need for a centralized entity to verify transactions. It could eventually even facilitate cross-border energy credit trading, the utility company has said.

“A consumer in Singapore who wishes to buy green energy can now, through blockchain-powered REC trading, purchase a REC from a hydro-producer based in Laos,” SP Group CEO Wong Kim Yin told CNBC at the Singapore International Energy Week conference last week. “This reduces the cost, reduces the friction in the market.”

High costs in verifying certificates as well as the difficulties in tracking RECs have led to relatively low trading volumes in Singapore, and even so, a majority of the transactions occur directly between one originator and buyer — not on a marketplace.

Adding blockchain to the equation may change that: The distributed ledger system effectively eliminates the need for verification processes at a centralized entity, reducing costs and allowing small energy consumers and producers to participate.

Wong spoke of a future in which energy trading is more decentralized, driven by technology and where consumers are empowered to make sustainable energy choices.

“In the past, you have big power stations in the centralized model and you would transmit power to the households. In the future you would have solar panels and you would have batteries. In that model the power system would be a lot more robust,” Wong said.

Green energy options are limited with land constraints in the city-state, meaning large-scale construction of wind farms isn’t an option. Solar panels, which are installed on surfaces, are also a function of land area, as well as the residential and commercial build-up.

Innovations like floating solar energy panels on reservoirs, which are currently being tested in Singapore, could help alleviate the spatial constraints of land, but the potential extent of such technology remains a question.

As a result, experts expect that demand will continue to outstrip supply in Singapore in the near future. Lars Kvale, managing director at APX, which is an issuer of RECs globally, told CNBC that “there is significant demand for renewable energy in Singapore but a limited amount of renewable energy capacity to meet all of the demand.”

Blockchain could unlock some of that potential through matching cross-border demand and supply.

“The true promise of blockchain and distributed ledger technology in the context of environmental commodity platforms is allowing these platforms to establish trusted relationships with upstream information sources without having to revalidate it,” Kvale added.

SP Group owns and operates electricity and gas transmission and distribution businesses in Singapore and Australia, as well as district cooling businesses in Singapore and China.

Electricity/Power Grid

Myanmar still weak in enforcing contracts, protecting minority investors

12 November 2018

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Myanmar

Myanmar has done undertaken two reforms to improve access to power supply and the ease of starting a local business, according to the latest report from the World Bank. However, pace of reform on most regulations affecting the private sector remain stagnant.

In the newly-released World Bank’s 2019 Doing Business rankings, Myanmar ranks 171th out of 190 economies in the overall ease of doing business, unchanged from last year’s position. It is the third consecutive year where the country fails to advance its ranking, remaining as the worst place in ASEAN to conduct business.

Economies are ranked on their ease of doing business, from 1-190, based on the average of each economy’s ease of doing business scores for the 10 topics, which capture several important dimensions of the regulatory environment as it applies to local firms. The analysis provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. An economy’s ease of doing business score is reflected on a scale from 0 to 100, where 0 represents the lowest and 100 represents the best performance. Myanmar scores an average of 44.72, which is the lowest in ASEAN, compared to the second lowest-scored Laos with 51.26 and the regional average for East Asia and the Pacific with 63.41.

Key weaknesses

Aspects with the lowest scores (out of 100) for Myanmar include getting credit (10.00), resolving insolvency (20.39), enforcing contracts (24.53) and protecting minority investors (25.00). Meanwhile, areas which perform the most poorly compared to other economies (out of 190 countries, with 1st being the best) are enforcing contracts (188th), protecting minority investors (185th), getting credit (178th) and trading across borders (168th) as well as resolving insolvency (164th). These are key aspects which the government needs to work hard on.

Myanmar still weak in enforcing contracts, protecting minority investors

For example, Myanmar businesses need an average of 1160 days to enforce a contract, which is almost double of the East Asia and Pacific average of 581.1 days.

Last year’s index reported that Myanmar made registering property less costly by reducing the stamp duty and improved access to credit information by adopting a regulation allowing the establishment of credit bureaus.

Many economies in the region have undertaken more reforms. China has the second highest number of reforms per economy, with seven reforms. For example, Beijing made dealing with construction permits less cumbersome by streamlining the process of obtaining a building permit, and also made getting electricity easier in Beijing and Shanghai by expanding network capacity so that all connections of power loads of 160kW or less are now made directly to the low voltage network and free of charge.

Within ASEAN, Malaysia implemented six reforms and made starting a business easier by introducing an online registration system for the goods and service tax. It also made property transfer simpler by implementing an online single window platform to carry out property searches. Thailand made paying taxes easier by enhancing its online platform for calculating and filing corporate income tax. Indonesia, the Philippines and Vietnam each carried out three reforms.

Myanmar’s lack of improvement in this regard will be widely seen as a major policy failure by the incumbent government, which has repeatedly committed to elevating the country into the top 100 economies in the index by 2020. It is clear that the target will not be met.

Improvements made

Nevertheless, Myanmar managed to make progress in other areas of business. Among the ten barometers, Myanmar made improvements on starting a business (score 77.33) and power supply in Yangon (55.67).

Nay Pyi Taw made starting a business less expensive by reducing the registration fee, and improved the monitoring and regulation of power outages by beginning to record data for the annual system average interruption duration index (SAIDI) and system average interruption frequency index (SAIFI). The country also made getting electricity more transparent by publishing electricity tariffs online.

Still, there is a long way to go for the reform efforts in this frontier economy. For example, starting a new business takes 1.5 days in Singapore, compared to 14 days in Myanmar. It is also difficult for businesses in Yangon to secure electricity, taking 77 days, compared to 24 days in Kuala Lumpur.

Oil & Gas

Crude palm oil for power considered

12 November 2018

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Thailand

The Energy Ministry is considering using a surplus of crude palm oil this year to replace fossil fuels for power generation at two state-run plants in Chachoengsao and Ratchaburi.

The tentative plan is to be implemented at Bang Pakong power plant, owned by the Electricity Generating Authority of Thailand (Egat), and Ratchaburi power plant, owned by Ratchaburi Electricity Generating Holding Plc, Egat’s subsidiary.

Energy minister Siri Jirapongan said this plan would absorb 160,000 tonnes of crude palm oil.

Theoffice of Agricultural Economics reported the stock of crude palm oil as of September stood at 375,591 tonnes, higher than the normal level of 250,000 tonnes.

Thailand has produced 2.5 million tonnes of crude palm oil, with 900,000 tonnes going to vegetable oil for consumption and 1.3 million tonnes serving biodiesel for vehicles.

Mr Siri said the two powerplants can shift from diesel and bunker oil to crude palm oil.

“Both state-run agencies have recieved the ministry’s order to use crude palm oil for power generation for three months,” he said. “But the two power plants have yet to announce when they will start using crude palm oil.”

Mr Siri said power generation cost is expected to double to 6-7 baht per kilowatt-hour (unit) from an average tariff at 3-3.2 baht per unit, but the ministry plans to effer a 1-billion-baht subsidy to maintain people’s power bills.

“The government will allocate 500 million baht and Egat will provide another 500 million baht,’ he said.

This latest plan is a rehash of a move during the last surplus in 2016, when Egat was facing financial troubles.

Earlier, the ministry tied down oil traders with the announcement it was increasing the content of crude palm oil in biodiesel from 6.6% to 6.8% in a bid to curb slumping palm oil prices, effective from last Thursday.

Retail biodiesel, called B7, is blended with 6.6-7% methyl ester (ME). The move is expected to absorb around 62,000-80,000 tonnes of crude palm oil.

Furthermore, the ministry has encouraged truck operators to use B20, blended with 20% ME, since July, projecting B20 consumption of 3 million litres a month.

The Energy Business Department reported B20 consumption in old trucks is undergoing a trial project with a volume of 7.7 million litres.

The Transport Ministry has already used B20 in a trial test for five public buses operated by the Bangkok Mass Transit Authority and three long-haul buses operated by Transport Co.

Transport Co plans to run the test for a month to forecast B20 consumption in the future.

“We expect to absorb a large volume of crude palm oil, up to 1.7 million tonnes a year once we can use B20 in public transport,” Mr Siri said.

The ministry set the B20 retail price below that of B7 by three baht a litre, and it is exempt from levies for the State Oil Fund.

Nonetheless, Whichai Phochanakij, director-general of Internal Trade Department, said the Commerce Ministry has measures to encourage palm oil exports of 525 million baht to subsidise transport costs at 1.75 baht per kilogramme.

“The ministry aims to export 300,000 tonnes of palm oil within five months, but it has to find new export markets to support this huge volume,” said Mr Whichai.

“The price of palm oil has dropped to 16 baht per kg, while Thai prices stand at 17-18 baht. The measures suggested are the best solution for the surplus.”

Electricity/Power Grid

Thai power authorities investigate smart grids for renewables integration in remote region

12 November 2018

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Thailand

Patana Sangsriroujana, deputy governor of strategy at EGAT and Sompong Preeprem, governor of PEA. Image: EGAT/PEA.

A smart grid pilot will be put into action in the Thai province of Mae Hong Son, to integrate and balance growing shares of renewable energy using battery energy storage systems (BESS).

The Electricity Generating Authority of Thailand (EGAT) and the country’s Provincial Electricity Authority (PEA) have signed an agreement to investigate the use of batteries under the country’s Smart Grid Master Plan, a five-year development plan signed off in 2016.

An expert team from Chulalongkorn University found in a recent study that Mae Hong Son, a remote and mountainous province in northern Thailand lacking in existing large-scale power plants is a suitable area for using smart grid technology to enhance local generation and distribution of electricity.

At present, the region gets its power through PEA transmission lines, through hydro and solar power and a diesel power plant. Outages are frequent and the two partners will investigate how the reliability of local energy supply can be improved, in a project aimed at sharing information and studying the management of power supply.

Under the terms of a Memorandum of Understanding (MOU) signed by EGAT and PEA shortly before the end of October, a working study group will be set up to study four aspects of battery and renewables integration:

BESS will be connected to PEA’s Mae Hong Son distribution system according to engineering standards and grid codes. It will also be operated and evaluated in ‘islanded’ mode, running independently of the local grid.
Protocols will be implemented on the Mae Hong Son network to support that latter transition from grid-connected to islanded modes.
The exchange of relevant data which is likely to include communications and connection point protocols as well as the application of data to improve working processes.
Testing and controlling the smart grid system, including in grid-connected and islanded modes and from there figuring out and mapping how such systems could be suitable for deployment in the local area.

The smart grid will be controlled by an EGAT-designed controls system. The announcement comes just under a year after EGAT announced battery energy storage to be a “new dimension” for the management of electricity. Thailand has around 1,031MW of pumped hydro storage already, and is apparently planning to deploy a further 2,100MW. EGAT identified however that batteries can be deployed more quickly and taking up far less space, while offering fast response times and other advantages in the way it can be controlled and used for a variety of applications.

In a November 2017 release, EGAT referred to three battery storage systems either already deployed or planned for its networks, mostly in areas where generation and transmission equipment is located, including one 3MW project in Mae Hong Son with 15 minutes duration of storage. At that time, EGAT said the 3MW system. EGAT also said last year that it is proposing that the majority of its BESS deployments will be in southeastern Thailand where there are large amounts of renewable energy generation assets.

Autotrop eyes battery exports to Cambodia

12 November 2018

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Cambodia

Malaysia-based Autotrop Sdn Bhd plans to penetrate the competitive Cambodian auto sector to promote its – Fujiya and Challenger – batteries and even plans to set up a local warehouse.

Speaking to The Post in the capital last Thursday, Autotrop’s director Gary Lim T.H. said the company sees Cambodia as a potential market for its products, which are used worldwide.

“Cambodia is growing very fast and we are targetting to sell automotive batteries, mainly the three categories – maintenance free, deep cycle battery and the conventional type,” said Lim

The deep cycle batteries caters for electrical appliances on boats, golf buggies, light industrial scissor lifts and caravans as well as commercial and recreational vehicles, said Lim.

The batteries met the Japanese Industrial Standards (JIS), Deutsches Institut fur Normung (DIN) standard and have qualified export packaging for the export markets.

The company participated in the CamAuto Expo 2018 where some 40 companies involved in auto parts, accessories and service equipment took part in the three- day event held at the Diamond Island Exhibition and Convention Centre in Koh Pich in the capital last week.

“We are looking for new markets and shifting from the domestic market (Malaysia).

Lim (right) displays the Fujiya battery at the CamAuto Expo. Post Staff

“We are looking for dealers here and opening a warehouse is an option. This will shorten logistics time and we can deliver to customers within a short period.

“There is a good demand for batteries in Phnom Penh and Sihanoukville, as the number of vehicles continues to rise.”

“I am confident our products can sell in this market, it is built with Japanese technology and the brand has existed in the market since the 70s.”

“Our prices are competitive and we promote quality products,” said Lim

In Cambodia, lead acid batteries have dual usage. Besides being used in vehicles, batteries are also used in rural areas, where there is no electricity, for lighting purposes.

According to a 2014 report by Research and Markets, a research agency, Cambodia’s lead acid batteries market is projected to be worth $239.4 million by 2019, at a compound annual growth rate of 10 percent.

“Most of the households in Cambodia use automotive batteries for lighting purposes leading to high replacement rates for automotive or mid capacity batteries in the region.”

“Investments in automotive parts factories in Cambodia have opened the market for automotive batteries in the region,” said the report.

The Fujiya and Challenger batteries are manufactured by ABM, a subsidiary of ABM Fujiya Berhad and the batteries cater for a wide range of Malaysian, Japanese, Korean and European made vehicles, ranging from small passenger cars to buses and trucks.

At present, the company is operating four plants with a total production capacity of approximately 1.6 million units of batteries per annum, and targets foreign markets.

Oil & Gas

MVOT wins $176-mn equipment deal for Vietnam offshore gas project

12 November 2018

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Malaysia ,
Vietnam

Under the 7-year contract, MVOT, a joint venture between PetroVietnam Technical Services and Malaysia’s MISC Berhad, will provide a FSO to the Japanese firm for the development of the Sao Vang-Dai Nguyet gas field, PetroVietnam said.

HANOI: Malaysia Vietnam Offshore Terminal (MVOT) has been awarded a $176 million contract to provide equipment for Idemitsu Kosan to develop a gas block off southern Vietnam, the Vietnam Oil and Gas Group, or PetroVietnam, said on Tuesday.

Under the 7-year contract, MVOT, a joint venture between PetroVietnam Technical Services Corp and Malaysia’s MISC Berhad, will provide a floating storage and offloading vessel (FSO) to the Japanese firm for the development of the Sao Vang-Dai Nguyet gas field, PetroVietnam said.

The FSO, due to start operating from July 2020, will have capacity to store 700,000 barrels of condensate, PetroVietnam said.

Sao Vang-Dai Nguyet, located at blocks 05-1b & 05-1c, 350 km (217 miles) southeast of Vietnam’s coast, is 43.08 percent owned by Idemitsu Kosan, 36.92 percent by Teikoku Oil (Con Son) Co. and 20 percent by PetroVietnam.

PetroVietnam said in August it had signed a gas sale-purchase agreement with the developers of the field.

Energy Cooperation ,
Oil & Gas

Indonesia extends three energy contracts, opens third bidding round

12 November 2018

–

Indonesia

JAKARTA, Nov 6 (Reuters) – Indonesia has decided to award 20-year contract extensions from 2022 to three existing oil and gas block operators, Deputy Energy Minister Arcandra Tahar said late on Monday.

These were:

* Tarakan block, awarded to operator Medco Energi Internasional unit Medco E&P Tarakan, with a 100 percent participating interest

* Coastal Plains and Pekanbaru (CPP) block, awarded to Bumi Siak Pusako with 100 percent participating interest

* Tungkal block, awarded to Mond’or Oil Tungkal (70 percent participating interest) and Fuel X Tungkal Ltd (30 percent participating interest)

The total signature bonus for the three blocks was $13.95 million, and all three contracts will use a gross split scheme.

Regulator and government officials were not immediately able to provide data on output from the above blocks.

Tarakan and Tungkal block operators will be required to divest a 10 percent participating interest to a regional enterprise, Tahar said, noting that CPP had already satisfied this requirement.

Sengkang block, whose contract is also due to expire in 2022, was still subject to discussion, he said.

Also on Monday, Arcandra said the government was opening the third oil and gas block bidding round for 2018. The four oil and gas blocks on offer through direct offers or joint studies are:

1. South Andaman block, offshore Andaman Aceh 2. South Sakakemang block, onshore South Sumatra 3. Anambas block, offshore West Natuna 4. Maratua block, onshore and offshore North and East Kalimantan (only offered to Pertamina)

Bidding documents for the above blocks will be available from Nov. 5 to Dec. 17, with bid submission due by Dec. 19. (Reporting by Wilda Asmarini Writing by Fergus Jensen; Editing by Gopakumar Warrier).

Electricity/Power Grid ,
Energy Cooperation

Indonesia’s PLN gets $1.6 bn loan for giant power station project

12 November 2018

–

Indonesia

The offshore US dollar credit facility with 20 international banks, signed on Oct. 25, was the first of its kind for PLN, the company said in a statement issued on Monday

JAKARTA: Indonesia’s state-owned power utility Perusahaan Listrik Negara (PLN) said it has secured a $1.62 billion syndicated loan facility to support its role in the country’s ambitious 35 gigawatt power station development programme.

The offshore UN dollar credit facility with 20 international banks, signed on Oct. 25, was the first of its kind for PLN, the company said in a statement issued on Monday.

“We see this as strong proof that PLN and Indonesia’s credit profile is very good,” PLN finance director Sarwono Sudarto said.

Australia and New Zealand Banking Group Ltd, Bank of China (Hong Kong) Ltd, Citigroup Global Markets Singapore Pte. Ltd., Mizuho Bank Ltd, Oversea-Chinese Banking Corporation Ltd, Sumitomo Mitsui Banking Corp Singapore Branch, and United Overseas Bank Ltd were the lead arrangers and bookrunners.

The new loan facility follows the issuance of around $1.5 billion in 7, 10 and 30-year global bonds in U.N. dollar and euro denominations by PLN in mid-October.

“This shows that overseas financial institutions are very interested in Indonesian infrastructure projects, especially in electricity,” PLN spokesman I Made Suprateka told Reuters by text message on Tuesday.

PLN has an investment-grade credit rating of Baa2 from Moody’s and BBB- from Standard & Poors ratings agencies, ratings that are equivalent to Indonesia’s sovereign credit ratings in each case and reflect the firm’s state-owned status.

According to the Organisation for Economic Cooperation and Development (OECD), however, debt taken on by PLN and other Indonesian state-owned companies to finance infrastructure projects could expose them to cash flow constraints, “particularly if interest rates increase or projects are delayed”.

This, in turn, could result in higher fiscal risks for the government, it said in a report last month.

PLN reported a net loss of 18.48 trillion rupiah ($1.24 billion) for the January-September period, compared to a profit of 3.04 trillion rupiah in the same period a year earlier, according to a financial statement published in late October.

The earnings showed a nearly 20 percent increase in fuel and lubricant costs in that period, a 13 percent increase in power purchase costs and a near seven-fold increase in foreign exchange losses.

PLN is expected to receive a 6.5 trillion rupiah injection from the government in 2019, part of government efforts to shield the company from the impact of a currency slide – the rupiah has weakened around 8.6 percent this year.

The government’s decision not to raise power tariffs until 2019 has also hurt PLN, as coal prices have climbed significantly this year.

The last year for which PLN reported a net loss was in 2013. That year it posted a 26.23 trillion rupiah loss that the company attributed to a 21 percent plunge in the rupiah’s value, according to its financial statements.

News Clipping

The offshore US dollar credit facility with 20 international banks, signed on Oct. 25, was the first of its kind for PLN, the company said in a statement issued on Monday

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