News Clipping Archive - Page 1047 of 1301

Renewables

Vietnam shoots past renewable energy target

18 September 2019

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Vietnam

Renewables account for 9 percent of Vietnam’s energy mix now, already surpassing the target of 7 percent set for 2020.

As of July the country’s solar energy capacity was 4,543 megawatts (MW) and wind power capacity was 626.8 MW, Le Hai Dang, a strategy board member at Vietnam Electricity (EVN), said at the opening of the 2019 Vietnam Renewable Energy Week held in Hanoi on Tuesday.

Vietnam has almost fully exploited its hydropower potential and its oil and gas reserves are running low, and so relies on thermal power plants despite the great environmental pollution they cause.

Nguyen Van Nguyen, deputy chief of office of the Bac Lieu Party Committee, said the province plans to scrap plans for building thermal power plants and focus instead on renewable energy.

The Mekong Delta coastal province has great potential for wind energy with its 40,000-square-kilometer flood plain. It is already home to the largest wind farm in Vietnam.

But Nguyen said funding is a challenge. Developing wind energy in Bac Lieu would need $4 billion and the province has not found capable investors yet.

The development of clean energy is critical if Vietnam is to achieve its annual GDP growth of 6.5-7.5 percent in a green, sustainable manner.

Renewables

Nuclear is safe, perception is the problem – PNRI

18 September 2019

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Philippines

NUCLEAR POWER CAN BE A VIABLE OPTION TO INCLUDE IN THE PHILIPPINES’S ENERGY MIX AS IT IS A SAFE CHOICE IN CONTRAST WITH THE PUBLIC’S PERCEPTION.

This was what Philippine Nuclear Research Institute (PNRI) Director Carlo Arcilla said during the panel discussion in this year’s Powertrends on September 3 and 4.

Arcilla noted that nuclear power supplies around 20 percent of the world’s power needs, emitting zero emissions. It is also considered as the most regulated industry in the world.

“From the emissions side, it is better than coal. The big question in nuclear is where do you put the waste?” Arcilla said.

Skeptics of nuclear energy technology points to issues surrounding nuclear power such as the Chernobyl and Fukushima accidents, fuel sourcing, the pending decision on the Bataan Nuclear Power Plant (BNPP), as well as the waste disposal management.

According to EcoWaste’s clean air and renewable energy advocate Rene Pineda, reviving the BNPP might not be a good idea. He said that it is better not to create a “highly toxic problem that our country cannot handle.”

“How do BNPP pushers intend to manage, store and dispose of the tons of highly toxic waste that will be generated when we cannot even effectively deal with our ordinary household discards?” he was quoted as saying.

However, Arcilla believed that the main problem with nuclear power is public perception.

“The big problem with nuclear is perception because when you mention nuclear people start thinking ‘bomb.’ If it is unsafe, why does America have 100 nuclear power plants and will continue having them?” Arcilla said.

He noted that if the government decides to push through with the utilization of nuclear power as an energy source, waste disposal should be a priority.

According to a coursework study, there are methods to properly dispose nuclear waste such as reprocessing, transmutation, space disposal, and geological disposal.

Reprocessing is a method that includes taking the waste away from the material and separating the useful component. Transmutation is the process of converting a chemical element into another less harmful one.

Space disposal focuses on putting nuclear waste on a space shuttle and launching it into space. However, this might not be a viable option as it poses a problem in terms of practicality.

Arcilla suggested geological disposal as it is the most practiced waste disposal method. It involves burying the radioactive waste deep inside multiple barriers to provide protection.

“You select an isolated island. Then, put the waste there and you put a material called Bentonite,” he said.

“There is a solution. It is important to discuss this issue upfront,” he added.

Aside from waste disposal, sourcing nuclear power’s fuel, which is uranium, is also one of the problems surrounding the installation of a nuclear plant in the Philippines.

Uranium is a metallic element that occurs naturally. It is 500 times more abundant than gold, 25 times more abundant than mercury and about as common as tin.

He added that sourcing for uranium shouldn’t be a problem, as importing the material is easier than coal.

“For Uranium you have, Kazakhstan, Australia, Canada, and the US. The IEA actually put up a fuel repository in Kazakhstan to make sure that it will not be cartelized,” Arcilla explained.

ISSUES WITH BNPP

The revival of the Bataan Nuclear Power Plant remains an issue as there are issues surrounding the reliability of the plant and other geological issues.

However, Arcilla debunked the myths surrounding BNPP such as the plant being on a fault line.

“You can say many things about the BNPP but number one it is not built on a fault, and I say that as a geologist. Not all geologists will agree. I did my own studies. I have my data and a list of people who don’t believe in it because I can’t believe that the country will spend $2 billion and not check if it’s on a fault or not,” Arcilla said.

As for the impending status of BNPP, National Power Corporation Management Committee Atty. Manuel Luis Plofin said that, “It’s always affected by some external event. At the time that a decision was being made to operate or not to operate, Chernobyl happened.”

Earlier, the Department of Energy Secretary Alfonso Cusi has openly said that the Philippines is “openly considering” to use nuclear power to achieve its energy security goals.

“It is high time we put the framework in place to bring nuclear power into the energy mix. We should learn the lessons from the past and catch up with the missed opportunities,” Cusi was quoted on the International Atomic Energy Agency (IAEA) website

Still, many argued that the Philippines still lack of well-defined policies regarding import and export controls, emergency preparedness and response.

Chairman of Senate Committee on Energy Senator Sherwin Gatchalian agreed that there is still a lot to learn from more advanced countries about nuclear power development.

“All of the gaps in our nuclear energy legal framework would first need to be addressed by passing comprehensive legislation,” Gatchalian said.

Currently, the country has a sole nuclear regulatory body which is the PNRI under the Department of Science and Technology (DOST). PNRI’s responsibilities focus on radiation and nuclear research and development.

Others

Philippine Energy Outlook Reflects Shifts In Rules, Risk, And Demands For Change

18 September 2019

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Philippines

The Philippine energy sector is grappling with changes at the national and global levels generated by increased demands for transparency in bidding and pricing while reducing climate risk and avoiding stranded assets, according to a report released today by the Institute for Energy Economics and Financial Analysis (IEEFA).

The report – Prospects Improve for Energy Transition in the Philippines – provides an overview of current trends and gives a detailed breakdown of the country’s energy outlook and the barriers that are slowing uptake of renewables.

“Today, there is an unprecedented opportunity to redesign the market to attract lower prices and more investment,” said IEEFA financial analyst Sara Jane Ahmed, author of the report.

The analysis found three major trends that will play important roles in determining which direction the country is headed.

Fuel price pass-throughs have inflated consumer prices and are a key driver of the transition: Electricity prices in the Philippines are amongst the highest in South East Asia and are relatively high compared to global standards. This is largely due to heavy reliance on imported fossil fuels, high financing costs, and uncompetitive market structures that have stifled innovation.
Real competition may be coming soon: New catalysts for change are coming, not from the marketplace, but from legal challenges that have encouraged policies to spur competition through transparent bidding and to reduce electricity prices for consumers and industry. More retail competition is on the cards and the role of grid operators can also be expected to change as they may be barred from passing on fuel price and currency exchange risk to consumers and businesses.
Meralco is the trend-setter: The best way to monitor current trends is to track how Meralco — the owner of the country’s largest distribution franchise in Metro Manila and also an independent power producer (IPP) investor — adapts to market pressures. Meralco could emerge as a big winner or a damaged laggard.

The report details recent rulings by the Philippine Supreme Court that make it difficult if not impossible for energy companies to continue to pass along increased costs and risks. In addition, the improved technology and affordability of renewables puts further pressure on the sector to adapt or perish.

“Wholesale power prices in the Philippines, currently amongst the highest in Southeast Asian countries, can be cut by 30%, and consequently attract more foreign investments,” said Ahmed.

The role of China, a major investor in the Philippines, will also determine how quickly the energy sector is able to adapt to the changing market and regulatory environment. Both countries need to act to reduce the size and nature of their future coal and other fossil fuel assets and obligations that are exposed to stranded asset risk or face the consequences on national balance sheets, according to the report.

Oil & Gas

Philippines has enough oil supply ‘to keep economy running’: DOE

18 September 2019

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Philippines

MANILA (UPDATE) – The Philippines has enough oil supply for the next 30 days, Energy Secretary Alfonso Cusi said on Wednesday, following attacks in Saudi Arabia’s production facilities that reduced global output.

The Philippines has enough supply to “keep the economy running,” Cusi said in a press briefing.

“The supply that we have is sufficient to keep our economy running. We have enough inventory to last for 30 days,” he said.

Saturday’s attack on Saudi Arabia’s oil facility reduced global supply by 5.7 million barrels per day (bpd) or equivalent to 5 percent of global supply, Reuters reported.

Disruption in the world’s biggest crude exporter may result in increased costs for petroleum products worldwide, analysts said.

The Philippines’ package 1 of the Tax Reform for Acceleration and Inclusion (TRAIN) law, which raised excise taxes for petroleum products, among others, has safety measures in place if crude oil price reaches $80 per barrel for more than 3 consecutive months.

The suspension clause provided by the law covers the next scheduled excise tax increase for January 2020.

“That is allowed under the law. ‘Yung next increase…Hindi po bababa ang excise, there’s one more increase in January 2020,” Chua said in a press briefing.

However, it is unlikely to happen soon as the price per barrel is currently at $66, Cusi said. Saudi Arabia’s energy minister earlier said the country would fully restore oil production output by September.

Meanwhile, the effects of the crude oil disruption in Saudi Arabia, in the form of oil price hikes, may be felt in the country next week, Cusi said. — with a report from Arianne Merez, ABS-CBN News and Reuters

Renewables

Thailand’s Renewable Energy Targets To Open New Business Models

17 September 2019

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Thailand

Thailand’s goal of generating a third of its overall energy consumption from renewable sources in 18 years is expected to open unexplored business models that could create new jobs in the country.

According to GovInsider, Thailand has been hard at work in producing wind and solar power as part of its goal. Chief of Enterprise Architecture of the Electricity Generating Authority of Thailand (EGAT), Dr. Surat Tanterdtid, predicted that renewable energy transitions will open new business models that will cater to utilities.

For the utility sector, Tanterdtid believes opportunities will keep rising as Thailand continues to push for more renewable energy sources. He mentioned “load aggregator” as one of the models that future utilities can explore.

A load aggregator is someone who can negotiate with utility providers on behalf of Thai consumers who want their peak load reduced on the national grid. Load aggregators are expected to help lessen the burdens of consumers who are saving on consumption and utility bills.

Utility companies can also explore possibilities in buy-and-sell segments between virtual power plants. The idea is for the buildings to sell or buy solar power from the other. Any excess solar energy can then be sold to the main national grid so consumption can be maximized.

As more business models are explored in Thailand’s utility sector, industry analysts are expecting to see more job opportunities for local residents. Installations are another aspect of business that entrepreneurs can look into.

Aside from new business models in the energy industry, Thailand is also looking at creating a more flexible grid that the electric vehicle (EV) and machine learning segments can take advantage of.

According to Tanterdtid, if machine learning and other high-end technology are integrated into the grid “within the next two years,” EV production will increase and will further help improve the Thai economy.

Thailand has been hard at work in transitioning to renewable energy. During the weekend, Thai journalists listened to Pekka Gronlund, Deputy Director General at Finland’s Ministry of Economic Affairs and Employment.

Gronlund explained how the government is trying to push Finland into becoming the world’s first fossil-free nation. While there is a long way to go before the target is achieved, Finland already has a lot of lessons for Thailand and other countries to reap.

Industry experts said Thailand can first learn how Finland political parties decided to set aside their differences so they can create a more sustainable energy sector that will help reduce the strain on the environment.

Last month, it was revealed that Thailand is planning to become Southeast Asia’s power-trading center. As part of its goals, it is planning to boost electricity reselling activities to Malaysia while promoting infrastructure in the energy sector around Myanmar and Cambodia.

Electricity/Power Grid

Malaysia eyes higher electricity output from renewable sources

17 September 2019

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Malaysia

KUALA LUMPUR: Plans for the development of solar and other renewables remain less well developed in Malaysia, Indonesia and the Philippines, accoridmng to The Economist Intelligence Unit.

Indonesia and Malaysia sourced 12 per cent and 15 per cent of their total electricity output from renewable sources respectively in 2018, based on the EIU estimates.

“Malaysia aims to raise this proportion to 20 per cent by 2025, and Indonesia to 23 per cent by 2025 and 31 per cent by 2050.

“However, these figures look relatively modest compared with efforts elsewhere, and the two countries’ governments do not appear to have committed wholeheartedly to shifting their energy mix,” the EIU said in its latest report.

The EIU said Southeast Asia had traditionally relied on fossil-fuel-fired power generation to drive its growth.

It estimates that combustible fuels accounted for 82 per cent of total power generation in 2018 in the region’s six largest economies. Yet there are signs that this may be changing.

“In the face of pressure to reduce carbon emissions—as well as a shift in the cost of producing electricity from renewable sources relative to coal—policymakers in some countries are reassessing power policies,” it added.

The EIU said progress towards more sustainable energy strategies had varied substantially among the members of the Association of Southeast Asian Nations (Asean).

Although fossil fuels still dominate the energy mix in most of the grouping’s economies, Singapore and Thailand have at least relied more on natural gas, which produces less carbon dioxide (CO2) when burned.

By contrast, coal – often regarded as one of the dirtiest forms of fuel both in terms of CO2 emissions and more toxic pollutants – continues to play a major role in many of the region’s economies.

The EIU estimated that in 2018, coal-fired plants accounted for 31.3 per cent of electricity generation in Vietnam, 42.5 per cent in Malaysia, 45.4 per cent in the Philippines and 52 per cent in Indonesia.

Asean has set a target in 2015 for renewables to account for 23 per cent of the region’s energy mix by 2025.

“This target stands out as being relatively modest by global standards, but it will be tough to meet. Even in power generation, which forms only part of the total energy mix, renewables accounted for just 17.6 per cent of total generation in 2018 by our estimates,” the EIU said.

Electricity/Power Grid

Govt to liberalise power industry

17 September 2019

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Malaysia

KUALA LUMPUR: The Cabinet has approved a 10-year masterplan to reform the domestic power industry, in which the government will now stop approving new independent power production projects that come with power purchase agreements (PPA).

Dubbed as Malaysia Electricity Supply Industry 2.0 (MESI 2.0), the main feature of the masterplan is to introduce liberalisation across the industry from fuel sources, generation to transmission and distribution and retail in Peninsula Malaysia. And it will also encourage and facilitate the supply of green energy in the country.

With details yet to be ironed out, it is still unclear if the initiatives will result in lower electricity tariffs, which is already quite competitive currently. By the same token, liberalisation will help to enhance efficiency along the value chain, which in turn is expected to drive down production costs.

Speaking in a briefing last Friday, Energy, Technology, Science, Climate Change and Environment Minister Yeo Bee Yin revealed that the key reform initiatives are:

Allow generators to source own fuel to optimise cost;
Move from PPA regime to capacity and energy market;
Establish third party access framework and network charges for grid to allow third party using the infrastructures; and
Facilitate green energy producers and consumers.

Bringing down fuel costs

Independent power producers (IPPs) can source coal and gas from third parties instead of getting the supply from Tenaga Nasional Bhd (TNB) under the PPAs.

To encourage IPPs to source cheaper fuel, any cost-savings will be shared between end-users and the IPPs — although the ratio and exact mechanism has yet to be finalised.

According to Yeo, the current model does not encourage IPPs to source for cheaper fuels, as fuel source and cost increments are being taken care of by the PPA signed and the implementation of the imbalance cost pass-through (ICPT) mechanism, in which tariff will be adjusted in line with the fuel costs.

Fuel costs make up 42% of our electricity tariffs. In 2018, coal represented 57.5% in electricity generation mix in the peninsula, followed by natural gas 38.5% which is sourced from Petroliam Nasional Bhd (Petronas).

The Energy Commission (EC) will offer supplementary agreements to IPPs to enable them to procure their [of] own coal and gas as soon as the first half of 2021. “It is up to the IPPs to decide if they want to source fuel by themselves.”

“The IPPs could form a consortium to buy their own coal … if they want they can do that,” said Yeo. “Anyone can start the pilot in [the] fourth quarter 2020.”

No more risk-free PPAs

In the past, PPAs provide IPPs with guarantee of capacity payment (fixed payment to set up plant and make sure it can generate) and energy payment (payment for how much power is actually supplied).

Yeo revealed that the government is doing away with PPAs that offer guaranteed capacity and energy payments. This means future PPAs will comprise capacity payment, while excluding locked-in energy payments.

By doing that, it ensures security of supply, while also allowing Single Buyer entity — the main electricity off-taker — to always prioritise plants that can generate power at a cheaper price. Theoretically, this would drive down electricity tariff.

Future PPAs will also have much shorter tenure, as opposed to the 21-year tenure practised previously.

Malaysia currently has 25 long-term PPAs, of which two are yet to be built — namely Tadmax Resources Bhd’s 1,200 megawatt (MW) power plant in Pulau Indah, Selangor and THB Power Sdn Bhd’s 1,400mw plant in Gurun, Kedah.

The government also closed the open tender for the third round of Large Scale Solar (LSS3) last month.

The ministry expects future PPAs to be rolled out via capacity auction by end-2023 at the earliest. “It is a long timeline because we have a huge reserve margin of over 30%,” said Yeo.

Pausing PPA issuance will help the peninsula optimise its reserve margin to 25% by 2025, thus reducing the ratio of capacity payment and theoretically, the regulated tariff.

Meanwhile, power producers with excess capacity or with expired PPAs can utilise the improved New Enhanced Dispatch Arrangement platform (NEDA+) to sell both capacity and energy via spot contract to the Single Buyer, which will then distribute electricity to retailers.

Third party access to transmission grid

For now, the Single Buyer structure remains in place until TNB’s transmission and distribution assets is opened for third-party access (TPA) by non-renewable power producers.

Meanwhile, renewable energy (RE) plants will have a quota of a combined 100MW to secure from direct buyers for their electricity generation as much as the first quarter of 2020.

“This is a plus point among multinational companies, which are looking to maximise their renewable energy mix in the Asean region,” said the minister. “They can get it in Malaysia.”

It is also in line with the government’s vision to increase its green energy generation mix to 20% by 2025, from 2% currently.

An RE buyer can sign a third-party contract (TPC) with an RE supplier and TNB to acquire a minimum of 20MW directly from the supplier, while TNB will be paid a certain network charge for renting out its grid.

Beyond that, the government expects to come up with a TPA framework by end-2022. The ministry however did not commit to a specific deadline to roll out the TPA for all power producers.

TNB not the sole retailers

According to Yeo, the pilot to open up the retail segment to supply electricity to end-users is expected to commence in the second quarter of 2021, pending the installation of smart meters and other necessary infrastructures.

Prior to that, TNB will introduce itemised billing (complete break-down of the monthly bill) and time-of-use mechanism which underlines different charges at different hours of a day.

“We see an opportunity for the opening up of [the] retail segment to drive cost efficiency with the roll-out of smart meters and Internet of Things (to better organise consumption),” said Yeo.

In Singapore, which has seen a very competitive retail market that offered different packages such as fixed tariff, and charges that are lower than the regulated tariff set by the island-state’s power sector regulator.

But for now, the absence of TPA to the national grid likely means that it is a long way before other players join the game in electricity distribution. Retailers will bid competitively in the energy market, which power producers will tender out the electricity generated for sale, and sell to end-users.

Gradual changes not an overnight switch

The minister said that rebates will continue to the RM40 electricity bill rebate to underprivileged registered under the e-Kasih programme and others.

She stressed that the reforms will not be an overnight switch that will pull the rug from TNB’s feet. It is apparent that TNB will lose its dominant position in the local electricity industry, however Yeo commented that it might not be that easy to compete with the incumbent.

She noted that the existing PPAs will be honoured, and TNB will still be the owner of the regulated transmission and distribution assets in the medium term. There is adequate time for the industry players and financiers to digest the transformation.

To uphold a high-level of transparency, the EC intends to publish Power Planning report every six months. The report will provide updates on existing market participants, supply-demand data, and other recommendations to name a few.

Still, talk of power sector liberalisation is not new. In 2001, Malaysia wanted to introduce a merchant energy market as early as 2005, but the plan was halted after observing some countries experience power crisis incidents upon opening up their power sector.

Strong political will is required to make the 10-year plan a reality, say industry players.

Energy Cooperation

Mako tidal energy demonstration site opens in Singapore

17 September 2019

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Singapore

The Mako Tidal Energy Site at the Sentosa Boardwalk in Singapore has opened, following the signing of a collaboration agreement between Mako Energy Pte Ltd and Sentosa Development Corporation (SDC) in December 2018.

Mako tidal energy demonstration site opens in Singapore

Courtesy of Mako Energy

The collaboration agreement allows Mako Energy, a Singapore-based marine renewable energy company and a subsidiary of the Elemental Energy Technologies Group, to use a part of the Sentosa Boardwalk as a testbed site for the installation of tidal turbines. The site will demonstrate the scalable tidal energy system under South East Asian conditions.

The agreement involves a number of Singapore-based companies and is supported by Enterprise Singapore (ESG), which through its grant scheme has been instrumental in helping to hire local talent to implement the project. Future research at the site will involve other Singapore-based companies such as Forsee Power (energy storage) and ClassNK (certification services).

“A key objective for the tidal energy industry is to reduce the cost of electricity” said Elemental Energy Technologies Group CEO Douglas Hunt. “At the Sentosa Boardwalk site, Mako Energy is demonstrating how the unique scale of the Mako allows it to be attached to existing infrastructure, which reduces both installation and maintenance costs.”

Mako Energy has engaged higher education institutes to assist with its research, such as the Energy Research Institute at Nanyang Technological University, whose Dr. Srikanth Narasimalu will focus on resource studies in tropical waters. The company will also work with other institutes on specific topics such as ecosystem monitoring and data analytics.

News Clipping

Renewables account for 9 percent of Vietnam’s energy mix now, already surpassing the target of 7 percent set for 2020.

NUCLEAR POWER CAN BE A VIABLE OPTION TO INCLUDE IN THE PHILIPPINES’S ENERGY MIX AS IT IS A SAFE CHOICE IN CONTRAST WITH THE PUBLIC’S PERCEPTION.

ISSUES WITH BNPP

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