The eventual liberalization of many electricity markets in Asia is opening up investment opportunities and new business models for consumers, producers and authorities.
The energy sector in Asia is on the brink of a complete overhaul. According to the latest projections by Bloomberg New Energy Finance, Asia is set to receive almost 50% of the $11.4 trillion that will be invested in new power generation capacity until 2050. This represents a huge impact in the region. Furthermore, considering the rising concerns surrounding climate change, as stated by the Intergovernmental Panel on Climate Change in its latest report, renewables will become a centerpiece of the region’s energy transformation. Only one technology is equipped to unlock their full potential: blockchain.
The eventual liberalization of many electricity markets in Asia is opening up investment opportunities and new business models for consumers, producers and authorities. Utilities in the region have already started experimenting with blockchain technology, in preparation for what has been hailed as “the era of the prosumer”. For example, Power Ledger is working together with Thai energy utility BCPG in order to test blockchain technology for peer-to-peer (p2p) energy trading in a neighborhood in Bangkok. Meanwhile, in Singapore, Electrify is developing a blockchain-based marketplace that will enable p2p energy trading between users and/or the energy suppliers. All in all, blockchain is expected to impact not just the act of energy trading, but it is also set to revolutionize the financing side, the origination of renewables, the security of the grid and other applications.
The rapidly developing blockchain and energy landscape can be a difficult one to navigate. With so many initiatives popping up on an almost daily basis, it’s tough to distinguish the signal from the noise. To provide a quick, but comprehensive overview of the different players and efforts in the field, Solarplaza just published the most recent update of their ‘Comprehensive Guide to Blockchain and Energy Companies’, which is complimentarily available on their website.
Additionally, to facilitate a powerful and effective platform for exchanging relevant knowledge and networking with industry-peers, Solarplaza has decided to bring its Blockchain2Energy conference series to Singapore. Blockchain2Energy Asia will be the key meeting point for developers, utilities, startups, consultants, technology leaders, investors and regulators, allowing them to explore the present and future of blockchain in renewable energy in Asia. Organized by Solarplaza alongside local partner Vertech Capital, this 1-day conference in Singapore (November 27) will be the perfect meeting place for the energy-blockchain community in Asia.
Gunkul Engineering company Korat Wind Energy has passed its three-month completion review at the 50MW Mittraphap wind farm in Thailand.
The project is comprised of 20 turbines in Nakhon Ratchasima and sells power to the Electrical Generating Authority of Thailand via a long-term deal.
Mott MacDonald conducted technical due diligence during financing, which included reviewing the project’s participants, design, construction and operational execution plans, schedule and contractual arrangements, energy yield, site suitability reports and environmental and social plans.
The consultancy also provided construction monitoring services and will monitor operations throughout the loan tenor period, which commences in late 2018.
Mott MacDonald said: “It is an honour to be part of and contribute to Thailand achieving an increase in renewable energy consumption.”
It said Mittraphap adds to the country’s current wind installed capacity of 580MW already in commercial operation.
Vientiane (VNA) – Laos is among 15 countries worldwide receiving the biggest investment from China in the energy sector, Vientiane Times on October 15 quoted a World Bank report as saying.
By 2017, China’s investment in the field in Laos hit 15 billion USD and is expected to continue rising in the years to come, said the report.
China is now one of the largest investors in the hydropower sector in Laos, engaging in about half of the total number of hydropower projects in the Southeast Asian nation.
According to data of the International Rivers, China’s hydropower projects in Laos include the 2.4 billion USD Pak Beng, the 2 billion USD Ban Ou, Nam Kham 3, Nam Beng, Nam Leuk 1 and 2, Nam Ngum 5, Nam Mang and Nam Phay plants.
The energy sector has made significant contributions to Laos’ annual budget and played an important role in the country’s economic development. The Lao Ministry of Energy and Mines said that Laos is capable of producing 30,000MW of solar, bio-mass, wind, thermal and hydro electricity.
At present, Laos is home to 48 operating hydropower plants with total designed capacity of 6,551MW. They are able to generate 35,549 GWh per year. The country is now building 52 other hydropower plants with combined capacity of 6,511MW, able to generate 31,395 GWh per year. These plants are expected to be put into operation between 2020-2021.
China is currently the largest foreign investor in Laos with more than 700 projects worth up to 8 billion USD.-VNA
The Department of Energy is evaluating several large-scale power projects that could receiver a certificate of energy project of national significance under Executive Order 30 that streamlines the procedures for major projects. The big ticket projects include the Wawa Pumped-Storage hydro project of Olympia Violago Water & Power Inc.; 500-megawatt Kibungan Badeo Pumped Storage Hydro power of Coheco Badeo Corp.; and the 100.8-MW solar farm power project of Total Power Inc. Other projects that filed applications and under evaluation with the DoE are Repower Energy Development Corp.’s 10-MW Pulangi IV Hydropower project in Pangasinan; water-to-energy projects in Pampanga and Batangas of Green Atom Renewable Energy Corp.; the 70-MW Camarines Sur wind power project of Cornerstone Energy Development Inc.; 1.7-MW Tagpangi River hydro of Everyhydro Corp. and Hedcor Inc.’s 20-MW Sablan 1 hydro power project.
Transmission operator National Grid Corp. of the Philippines also applied for CEPNS for several transmission projects.
MANILA, Oct 14 (Reuters) – The Philippines said on Sunday it would suspend the implementation of a further increase in excise tax on fuel products, set to take effect in January 2019, to stem rising inflation expectations.
Inflation in one of Asia’s fastest-growing economies has been rising since January, due to higher taxes, costlier food and fuel and a weak peso, causing a decline in President Rodrigo Duterte’s popularity.
The Department of Finance (DOF) expects foregone revenues of up to 40 billion pesos ($740 million) a year from the suspension. That amount is part of the crucial funding for Duterte’s $180 billion “Build, Build, Build” programme, which aims to upgrade the country’s infrastructure.
Under the Tax Reform for Acceleration and Inclusion (TRAIN) law, the excise tax on fuel products is to be gradually increased between 2018 and 2020, with the first hike implemented in January and the second to take effect on Jan. 1 next year.
The law allows for the suspension of the second hike if the average price of Dubai crude, based on Mean of Platts Singapore, reaches or exceeds $80 per barrel from October to December 2018.
“The President is making an early announcement of the temporary suspension of the January 2019 oil excise increase” ahead of the trigger, the Department of Finance said in a statement.
“Today’s price and multiple estimates of crude prices over the next two months show that the average price will stay above the $80 threshold,” it said.
The government expects the tax hike suspension to help tame inflation, which quickened to 6.7 percent in September, the fastest in nearly a decade and marking the seventh straight month the rate stayed outside the 2-4 percent target this year.
Higher inflation and expectations that it will remain elevated in the last quarter prompted the central bank to tighten monetary policy by hiking key interest rates.
The central bank, which has two more policy meetings this year, expects inflation to return to within its 2-4 percent target next year. (Reporting by Enrico dela Cruz; Editing by Mark Potter)
Building for the future: The tram project, if approved, will take two years to complete, and cost 15 billion baht to build.
Khon Kaen has been chosen to be the government’s model smart city for other provinces to learn from.
Last Saturday, Khon Kaen hosted the Smart City Expo 2018, an event designed to showcase a variety of projects aimed at achieving the goal.
Known as the centre of the Northeastern Region, Khon Kaen — the 9th largest municipality in the country — is the first province to hold such an expo in Thailand.
Jointly held by both the public and private sectors in the province, the expo, organised at Khon Kaen International Convention and Exhibition Centre, included innovative ideas for improving the bus and light rail networks.
The theme of the event was “Be supportive and move forward together”.
Transport hub: A digital rendition of the planned Khon Kaen light rail project. Photos: Khon Kaen City Development (KKTT) Co., LT D.
Deputy Prime Minister ACM Prajin Juntong, who presided over the expo, said he was confident Khon Kaen would become a good model for other provinces to follow.
One of the province’s main strengths is the local educational institutions’ contribution to the efforts to make the smart city scheme happen.
“These are pieces of work by the Thai people. The work includes technology, studies and innovations by Khon Kaen that has adopted a smart work ideology,” he said.
“The bus project, for instance, will be implemented next year,” he added.
Khon Kaen’s Smart City development programme has also been included in the country’s 12th national social and economic plan (2017-21).
The programme calls for the city to double its annual GDP per person to US$12,000-$15,000 (394,000-493,000 baht) by 2029 from an average of $6,000 in 2016.
Khon Kaen has a population of 1.8 million and its GDP was 190 billion baht in 2017.
“The scheme has been created in the best interest of the public,” said ACM Prajin who serves as the chairman of the government’s committee on the smart city scheme.
The committee has recently assigned the Digital Economy Promotion Agency (Depa) to carry out a logo design contest for the project.
“To become a smart city, a city must fulfil at least two criteria: A smart environment and either a smart economy, mobility, energy, governance, living or population,” ACM Prajin said.
Any cities interested in participating are required to submit a plan to the government for consideration.
Applications will first be screened by a subcommittee before the committee makes a final decision as to which cities deserve to receive full smart city status.
A model for others: Deputy Prime Minister ACM Prajin Juntong presides over the Smart City Expo 2018 in Khon Kaen on Oct 6. Photo: Chakkrapan Natanri
A CITY FOR ALL
Rawee Hanpachern, lecturer on architecture at Khon Kaen University told the Bangkok Post that the Smart City Expo 2018 is the latest effort by the province to invite all sectors to work together on the initiative.
The first expo includes people from a broad array of professions and backgrounds including low-income housing communities, non-governmental organisations, environmental conservation groups, waste recyclers, bicycle groups and also women’s and children’s groups.
“We are trying to create a platform for all sectors to come together to find smart solutions to managing various issues in the city because a true smart city is not just about building train lines, or improving the internet, it is about management solutions to handle refusal disposal issues and improving the local environment. It can be anything, not just infrastructure,” he said.
“After all, a city is all about people. And a smart city is where smart people come together to create better management solutions,” said Assc Prof Rawee, also a native of Khon Kaen and one of the founders of the Khon Kaen Think Tank (KKTT).
Comprising natives of the city — including successful local businessmen — the KKTT was established in January 2015 and became the spearhead for driving initiatives in the province.
“What made the Khon Kaen Smart City project so unique and successful was collaboration. We have an active community, who can link with the university and provincial administrations. All the provincial governors agreed to help us too,” he said.
CHALLENGES TO SUCCESS
The government has welcomed the Khon Kaen model, but at a local level, some residents believe the smart city project benefits only the elite and wealthy middle class, not people from all walks of life.
“It will take time to bring everyone in the community on board. It is a long term project, and we need to involve all sectors. A true smart city does not leave anyone behind, and is definitely not exclusively for the elite or wealthy,” Dr Rawee said, adding that the KKTT will focus on including people from all sectors to join various community-level initiatives.
Another obstacle is that central government remains reluctant to allocate administrative power to the province.
Currently, the KKTT is waiting for the government to give overall approval to the Khon Kaen Light Rail Transit, the flagship initiative of the project.
LIGHT RAIL CATALYST
Local business groups and the provincial administration joined hands to launch the Khon Kaen Transit System Co (KKTS) in 2017.
The only similar company in Thailand is Krungthep Thanakom, launched by the Bangkok Metropolitan Administration (BMA) to operate transit services in the capital.
The planned 26km light rail network from Samran to Tha Phra sub-district will involve the construction of 18 to 21 stations, and need two years to complete.
Even in these relatively early days of the project, progress has been made.
Local business and provincial administration, including the five municipalities in the province, launched the Khon Kaen Transit System Co (KKTS) in 2017.
The light rail project has been valued at around 15 billion baht.
So far, the Land Traffic Management Commission (LTMC), a national think tank for transportation policy, has approved the plan.
All that remains is for the cabinet to approve the development project before bidding on the construction and running of the railway can begin.
“Some people might perceive that urban mass transit is created for only the wealthy or middle class. However, this infrastructure when completed will create a new ecosystem for the urban area and bring changes to the way of life for all in the province,” Dr Rawee said.
ORIGIN OF THE SMART CITY
Tired of waiting for central government, a community of business people in Khon Kaen struggled to find their own solution. And they came up with the “Khon Kaen Model”. The model is based on Transit-Oriented Development (TOD), which uses mass transit as the backbone for real estate and city development. If successfully implemented, Khon Kaen will be the first city in Thailand, apart from Bangkok, to have its own rail system.
The backbone of the Khon Kaen urban development plan is the construction of a 26-kilometre light rail transit line to solve traffic congestion and increase the value of real estate along the line. The plan is to generate sufficient income and wealth to cover the cost of constructing and maintaining the rail system. However, the goals of the Khon Kaen people are not only to solve traffic problems and develop real estate, but also to make their city more liveable and their economy more prosperous.
The Khon Kaen business community also has an ambition to master rail technologies so that they can develop more transit lines in the future and even sell such transit projects to other cities. Thus, they chose to develop their system using trams, which is an open system, rather than those used in all Bangkok mass-transit systems. Such closed-systems necessitate relying on foreign technologies indefinitely.
Fully aware that Khon Kaen is not a tourist city, the local businessmen made an effort to position the city as a regional hub for meetings, incentives, conferences and exhibitions (Mice), with a proposal to construct an international convention centre. They also plan to establish an inland container depot (ICD) to cut storage and transportation costs for the goods of small- and medium-sized enterprises. All of this will be executed and funded by the private sector.
The Khon Kaen Model sets an example of participatory development in which many sectors take part in the process. It all began when 20 local tycoons, who have known one another well since their school days, each invested 10 million baht to establish the Khon Kaen Think Tank (KKTT) Group in January 2015. The company was set up to be a vehicle to collaborate with Khon Kaen University to develop strategies for urban development. With assistance from the KKTT, five municipalities along the tram line have also founded their own company, the Khon Kaen Transit System Co (KKTS), to implement the model.
The regional government of Bandung in Indonesia has raised the wish to receive an ownership position in geothermal development companies working on project in the region.
Kamojang geothermal plant, Indonesia (source: ThinkGeoEnergy, creative commons)
The Government of the Bandung Regency in Indonesia has raised the wish to receive shared ownership in geothermal or geothermal exploitation companies. Bandung Regent Dadang M. Naser said, in accordance with the Law, local governments that have oil and gas exploitation locations could have shares in management companies.
Bandung Regency itself has geothermal potential that has long been exploited by companies engaged in the field of electrical energy.
“We want Bandung Regency to be involved in geothermal share ownership,” said Dadang today. At the very least, said Dadang, in accordance with the law the Bandung regency government can have geothermal shares as much as 5% to 10%.
Efforts to ask for share ownership have been made several times to the geothermal management company. “It’s been fought many times. But there has been no answer,” he said. He hopes that geothermal parties can grant this wish.
The recent withdrawal of Vietnamese groups from billion-dollar oil refinery projects is paving the way for potential foreign investors, especially those from Thailand and China, to jump in the industry.
At a recent meeting with government agencies, Pham Van Thanh, chairman of the Vietnam National Petroleum Group (Petrolimex), proposed to pull out from the South Van Phong oil refinery project in the southern province of Khanh Hoa so that the group can focus its financial resources on developing other important projects.
Responding to the Petrolimex’s proposal, Deputy Finance Minister Do Hoang Anh Tuan said that the finance ministry agreed, emphasizing that the ministry also made the same written suggestion to competent ministries and agencies about the issue previously.
According to Deputy Minister of Planning and Investment Nguyen Van Hieu, the main reason for the Petrolimex’s withdrawal proposal is the group’s financial health.
If the withdrawal proposal is approved, other investors will have opportunities to jump in the US$4.8 billion project, which is on the list of 127 large-scale projects calling for foreign investments, as used to see with the Long Son refinery project recently.
After Vietnam Oil and Gas Group (PetroVietnam) planned to divest from the Long Son refinery project in the southern province of Ba Ria-Vung Tau, Thailand’s Siam Cement Public Company Limited (SCG) in May this year acquired all 29 percent stake of PetroVietnam for more than VND2.05 trillion (US$90 million) to become the sole investor of the project.
Roongrote Rangsiyopash, president and CEO of SCG, said that the Vietnamese economy is on an impressive growth path and the Long Son refinery project is expected to encourage long-term investment in related industries throughout the value chain, as well as improving a competitive standard of products that will lessen the country’s need to import petrochemical products.
According to SCG, the engineering, procurement, and construction contract of the Long Son refinery project, whose total investment capital was approved to increase to US$5.4 billion early this year from the previous US$3.8 billion, will be implemented from the third quarter of this year and the whole project is expected to be put into operation in 2023.
Ensuring domestic supply source
Vietnam currently has two oil refinery plants, Dung Quat and Nghi Son, which meet some 70 percent of domestic oil and petrol demands. The country still has to import the products to meet its rising production and transport demands.
Chairman of the Vietnam Petrol Association Phan The Rue estimated that Vietnam’s oil and petrol market this year will rise by 7-8 percent against last year.
Statistics from the General Department of Customs showed that the country imported 7.07 million tons of refined petrol and oil worth of US$4.66 billion in the first six months of this year, increased by 11.5 percent in quantity and 40.4 percent in value compared with the same period last year.
The imports from all markets surged in the first half, of which imports from Russia rocketed by 11.5 times in quantity and 15.8 times in value to 60,361 tons worth of US$51.24 million, followed by Malaysia (up 63.5 percent in quantity and 120.7 percent in value to 2.01 million tons and US$1.24 billion) and China (up 54.6 percent in quantity and 105.1 percent in value to 790,725 tons and US$ 534.34 million).
The country last year also had to spend US$7 billion for importing over 12.8 million tons of refined oil and petrol products.
The establishment of oil refinery plants therefore will help Vietnam to be active in the petroleum supply source, minimizing adverse impacts on the domestic petroleum market due to the global market volatility.
