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  • Renewables
5 September 2019

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  • Philippines

A group of energy advocates banded together to push for both the government and private sector to explore more indigenous energy options for the Philippines, given the increasing demand amid massive infrastructure spending and the country’s growing population.

The Philippine Energy Independence Council (PEIC) urges energy stakeholders to develop new indigenous, renewable, and clean energy options to cater to the increasing demand and eventually achieve 100% energy independence.

PEIC was officially launched this week at the PowerTrends 2019 International Exhibition and Conference on Power, Energy, and Electricity at SMX Convention Center in Pasay City.

“Our council aims to be at the forefront of initiatives to continuously initiate public discourses in order to move government and private-sector decision-makers to beef up our energy reserves … We hope that these discussions can lead to concrete steps towards the goal of energy independence,” PEIC chairman Tony La Viña said in a statement.

“The fact remains that our country needs a significant leap to explore and develop untapped natural resources in strategic locations in the country … Energy security—the uninterrupted availability of energy sources at an affordable price—should therefore be a priority issue in every policy discussion in pursuit of national development,” he said.

The Malampaya consortium of Shell Exploration BV (SPEx), Chevron Malampaya LCC, and Philippine National Oil Company-Exploration Corp. has filed an application to extend its service contract and continue operating the gas-to-power facility.

The facility fuels three gas-fired power plants with a total generating capacity of 2,700 megawatts (MW) to provide 30% of the power generation needs of Luzon.

Connected to an onshore gas plant in Batangas, the Malampaya offshore facility in Northern Palawan was inaugurated in 2001. Estimates showed its gas reserves will be sufficient only until 2022 to 2024.

Its service contract is set to expire in 2024, but the group has already filed an application to have this extended as there may be more nearby areas which could be explored.

“In the Philippines, the twin factors of economic and population growth have tolled heavily on the country’s energy resources,” Paulo Gavino, external relations manager of SPEx, said in the same statement on Thursday.

“And with the expected huge increase in demand for more and cleaner energy by our fast-growing economy, there is already an urgent need to create alternative energy sources that are indigenous and sustainable,” noted Gavino.

In 2017, Energy Undersecretary Felix William Fuentebella cited the need to expand the country’s liquefied natural gas (LNG) capability to accommodate shipments from overseas.

“By 2024, the Malampaya gas field is expected to be depleted … until 2027. There is a need to expand its facilities for LNG expansion and importation, and for further exploration,” Fuentebella said at that time. —VDS, GMA News

  • Energy Cooperation
5 September 2019

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  • Thailand

The Energy Ministry of Thailand is ready to push forward five plans to promote energy sector in ASEAN at the 37th ASEAN Ministers on Energy Meeting (AMEM) that scheduled for Sept 2-6 in Bangkok.

Bangkok Post quoted the ministry’s director for international affairs Poonpat Leesombatpiboon as saying that the five action plans are expected to be developed at the meeting.

According to Poonpat, the meeting will involve discussions of effective energy management and stability for Southeast Asia via partnerships and innovation to promote the economy and improve people’s standard of living.

Multilateral electricity trading on a subregional level

The priority plan is to initiate multilateral electricity trading on a subregional level this year under an ASEAN power grid including Laos, Myanmar and Malaysia through the power infrastructure of Thailand. Additionally, ASEAN member nations will enhance their energy security through gas pipeline connectivity and a liquefied natural gas regasification terminal.

The second plan is to enhance the image of coal through promotion of clean coal technologies, led by Indonesia as the largest coal exporter in the region.

Meanwhile, the third plan aims to reduce its energy intensity by 20 percent in ASEAN in 2020 from the 2005 level .

Increasing target for renewable energy in Southeast Asia

The fourth sets an increasing target for renewable energy in Southeast Asia, reaching 23 percent of total capacity in 2025, and improving energy efficiency for home appliances sold in the region.

The fifth plan seeks to build capabilities in policy, technology and regulatory aspects for nuclear energy in ASEAN. Participants include ministers and high-ranking officials from the 10 ASEAN member states and the group’s eight partner countries , including China, Japan, the Republic of Korea, Australia, India, New Zealand, the US and Russia,  as well as representatives from six international energy organisations.-VNA

  • Coal
5 September 2019

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  • Indonesia
Indonesia is experiencing a coal power boom, particularly on Java, the most populous island in the world. One of the dozens of planned plants, Java 7, will be operational by October, and its construction has already left some communities questioning the wisdom of the development amid an emerging opposition to coal expansion nationwide.

Residents in Banten, the island’s westernmost province, have already reported decreases in fish catches and agricultural yields since construction began in April 2016.

“Their catch is as low as 50 percent compared to before the existence of the coal power plant,” says Pius Ginting, coordinator of the Indonesian NGO Association of People’s Emancipation and Ecological Action. “Moreover, their costs have increased, because they need to go a bit farther to fish.”

Java 7 is less than six kilometers from Terate, a village in Banten, and encroaches on its traditional fishing grounds. Residents of Pulau Panjang, an island at the head of the bay where Java 7 is located, are also affected: construction has compromised access to the sea and coal-carrying ships will soon do the same.

“Their fishing area is located in the passageway of the ships,” Ginting says.

Indonesia relies heavily on coal, which fuels 54 percent of its power generation, compared to 26 percent from gas, seven percent from oil, and 12 percent from renewable sources. One reason that the government promotes centralized coal generation is the country’s abundance of coal reserves, mostly on the island of Borneo. As demand has dropped from key exports markets, most notably China and India, increasing domestic consumption has become a national priority.

The government of Indonesia, the world’s largest archipelago nation, identified its coastlines as prime locations for the electricity-generating coal plants because they require large and reliable sources of water to produce steam power. Another reason for coastal placements is the nation’s reliance on the sea to transport coal from Borneo to Java.

Map of Java, Indonesia

Map data by OpenStreetMap via ArcGIS

Coastal communities, however, rely on that same environment for fishing, transportation, and recreation, and burning coal often leads to pollution. In a 2017 paper, researchers from the University of Wisconsin and the University of Virginia found that sea-based transport has a significant environmental impact on the climate and water quality.

“Coal releases a range of toxic substances into the environment. These go into the atmosphere, rain, groundwater, and seawater, and then to flora, fauna, and people,” says David Obura, an ecologist and fellow at the University of Queensland in Australia who studies the environmental impacts of coal-fired plants on coastal communities.

Coal dust from ships also blows into neighboring areas. “The coal unloading from the ships itself oftentimes creates severe air pollution,” said Ginting.

This is worrying because Indonesia has weak standards for both air and water emissions from plants compared to the United States, Europe, and China. Moreover, coal barges often wait at sea, blocking access to fishing grounds and sometimes damaging coral reefs with their anchors and keels, which places natural areas relatively far from coal plants at risk. One of Java’s top diving and beach tourism destinations, Karimunjawa, abuts a coal route that supplies several plants that will soon include Java 7. Open-air barges have already damaged the area’s reefs and polluted the water. Locals worry the situation will worsen if more plants come online and more ships transit through the coastal environment.

“Right now, we need about one million tonnes of coal for existing coal plants and it will double to two million tonnes for fulfilling future coal plants’ demand,” says Adila Isfandiary, a researcher with Greenpeace Indonesia. Regular coal transport is worrisome enough, but Greenpeace Indonesia is also concerned about the potential for greater disasters, such as what happened earlier this year when two barges collided in Pelabuhanratu in the province of Java Barat, dumping huge amounts of coal into the sea.

“This could happen more often once all of the coal power plants are operating in Indonesia,” Isfandiary says.

There is local opposition to the proposed plants, but it is fragmented: village leaders are often offered jobs in the coal plant so opposition tends to come from those at the bottom of the village hierarchy, such as poor fishermen and small-scale farmers. The Java 7 plant has employed many villagers during its construction phase, but Ginting expects opposition to increase once the plant becomes operational and staff is downsized and pollution increases.

The other hope for a halt to construction is the question of economic value—there is growing evidence that Indonesia does not need all this new coal and that overcapacity could doom the country’s ratepayers to subsidizing the coal plants for generations. A recent blackout also exposed the risk of centralized power and has increased the call for decentralized, renewable alternatives—of which Indonesia has ample potential to produce.

For now, though, Indonesia remains committed to coal. That means more coal smokestacks, barges, and stress on Java’s already burdened coastline and the local communities, sharks, dolphins, and other marine wildlife that depend on it.

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  • Eco Friendly Vehicle
5 September 2019

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  • Indonesia

Indonesia is eyeing the development of a domestic electric vehicle industry, with a Presidential Decree on Electric Vehicles (EV) being presented to the public in mid August.

This was followed up by the Coordinating Minister for Maritime Affairs Luhut Binsar Panjaitan who said at an event on Wednesday that the government currently encourages investments into the electric vehicle industry, including lithium battery manufacturing and charging station infrastructure development. Indonesia has been planning to make use of its mineral resources to become a key hub in the Lithium battery supply chain.

Speaking at the Indonesia Electric Vehicle Exhibition, Panjaitan revealed that several car and battery component makers, including Chinese battery maker Contemporary Amperex Technology Co Ltd (CATL),  South Korean battery maker LG Chem Ltd, Japanese battery maker Panasonic Corporation and Europe automakers Mercedes have expressed interested to participate in the investment of a lithium battery manufacturing and recycling facility, valued at USD 4 billion in Morowali, Central Sulawesi.

He added that domestic players should get involved in making Indonesia an EV hub for Asia and beyond with a target to start EV production in 2022.

“We [the government] agreed to push this [the electric vehicle industry]. I ask all investors in this field, do not ever hesitate, the government will help,” Luhut announced. He also promised “tax breakthroughs” to devised by the Ministry of Finance shortly, which would make Indonesia “more competitive.”

Meanwhile, auto makers and distributors said they are still waiting to see how industry guidelines derived from the recent presidential decree and their implementation will play out.

“Toyota has various electrification technologies,” said Rouli Sijabat, a spokesman for PT Toyota Astra Motor, Indonesia’s sole distributor for Toyota at the event. “Surely we are waiting for the implementation instructions and the technical regulation, so we can achieve market acceptance as expected.”

Indonesia’s largest taxi operator Blue Bird, who has introduced some EV into its fleet, said that the buying cost for an electric vehicle was expensive, and that the lack of charging stations is one main issues holding back the expansion of an e e-taxi fleet.

“We are happy there is a legal umbrella now [for the EV industry],” Adrianto Djokosoetono, the director of  Blue Bird Group told KrAsia in an interview.

Ikhsan Asaad, the general manager of Indonesia’ state owned electricity company (PLN) told KrASIA at the event that it will prepare five fast-charging stations in Jakarta by the end of this year, to support the infrastructure and encourage people to use EVs. PLN also offers a participating scheme for private firms, with a target to install 52 fast charging stations in some cities in Indonesia until 2020.

The government effort to kickstart an EV industry in Indonesia still needs to prove it can gain momentum with consumers, as well as prove that it contributes to the ultimate goal of lowering emissions. Some analysts have a cautious outlook.

“Transitioning away from petrol is certainly a worthy aim,” Kevin O’Rourke, a writer at Reformasi Weekly, a report analyzing politics and policymaking in the country, told KrASIA. But, he points out, at present the alternative to petrol is electricity generated from very low-calorie coal. Therefore environmentally the plan would actually exacerbate smog as well as CO2 emissions,” he said. “LNG might be a better alternative in terms of smog, but that would require higher pricing for both electricity and bigger disincentives for petrol use.” Petrol has traditionally been cheap in Indonesia, due to government subsidies.

For the EV goal to be workable, broader energy sector reform is needed, O’Rourke said. This would require more investment in geothermal, solar, wind and other clean renewables.

  • Renewables
5 September 2019

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  • Indonesia

Jakarta (ANTARA) – The country’s Special Economic Zones are ideal locations for the development of the circular economy, Country Representative for Global Green Growth Institute in Indonesia Marcel Silvius believes.

“A Special Economic Zone is a good place for the circular economy since clusters of companies can use the others’ waste, so they can share resources,” he said in Jakarta, Thursday. The Special Economic Zones refer to designated areas endowed with geo-economic advantages where special facilities and incentives are extended to attract investments.

A sustainable Special Economic Zone does not merely focus on zero waste practices but also on renewable energy sources, he said.

Related news: Mandalika development meets high standards: President
Related news: Government grants special economic zone permits to Lhokseumawe

​​​​​​​One of the Special Economic Zones he referred to was Mandalika in West Nusa Tenggara, which is a seeded tourist destination promoted by the Indonesian government as one of the ‘Ten New Balis’.

The Institute is currently working with the state-owned Indonesian Tourism Development Corporation (ITDC) in identifying measures to develop eco-tourism in Mandalika, making the tourism destination sustainable which includes ensuring that energy provision uses renewable sources, Silvius said.

At the moment, the institute is exploring options to make the city of Bitung in North Sulawesi, another Special Economic Zone, more sustainable. That means they are seeking possible investors and conducting feasibility studies in the area, he added.

“We are also looking now into Sei Mangkei in North Sumatra for another sustainability development, especially a hazardous waste treatment plant, as Indonesia only has one such plant in Java,” he explained.

The Global Green Growth Institute is an international organization that promotes the development of green growth by working with country members.

Green growth refers to an economic development approach that simultaneously considers the full range of economic, natural and social values to ensure that growth is good for the economy, planet and people.

  • Renewables
5 September 2019

 – 

  • Indonesia

Jakarta. Global rating agency Moody’s Investors Service believes Indonesia is unlikely to achieve its renewable energy target by 2025 and expects coal to continue to dominate the country’s energy mix over the next five to seven years.

Indonesia wants to derive 23 percent of the its primary energy needs from renewable sources, such as geothermal, solar and wind, within the next six years, from 12 percent currently.

But the government has been placing more focus on coal-fired power plants than on renewable sources, Moody’s said in a report published on Wednesday.

“Renewable energy faces many challenges in Indonesia. The key challenge is the evolving policy and regulatory framework, which has seen multiple changes over the years,” Moody’s wrote.

Wind and solar electricity costs are higher than coal-based power generation, which the government subsidizes. Also, tariffs are set at 85 percent of the average power tariff in each region for renewable energy projects, the agency said.

“The absence of a strong electricity grid on many Indonesian islands also makes it difficult to have large renewable energy projects,” it added.

The agency noted that state utility company Perusahaan Listrik Negara (PLN) is both the largest coal-based power generator and the sole electricity distributor in the country. Renewables would increase the risk of PLN’s coal- and oil-based power projects being abandoned.

“Another reason for the slow adoption of renewable energy is the concerns over falls in utilization rates for coal-based projects,” Moody’s said.

PLN’s energy mix consisted of coal (46 percent), gas (31 percent), diesel (14 percent), hydropower (8 percent) and geothermal (1 percent) in 2018.

This may protect coal-based power producers, which “are unlikely to suffer from sudden changes to carbon transition policy.”

They include LLPL Capital, which controls Lestari Banten Energi, an independent power producer with a 670-megawatt coal-fired power plant in West Java, and Minejesa Capital, which controls Paiton Energy in East Java, as well as PLN, Moody’s said.

“However, financing for new coal-based projects and refinancing for existing coal-based projects will face difficulty, as some banks and financial institutions have taken a policy decision to not lend to coal projects,” the ratings agency said.

  • Energy Cooperation
5 September 2019

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  • Lao PDR
  • Malaysia
  • Thailand

Laos, Malaysia and Thailand have agreed on a second power purchase agreement under the Laos, Thailand and Malaysia Power Integration Project (LTM-PIP) at the 37th Asean Ministers on Energy Meeting (AMEM).

The meeting started on Monday and is scheduled to end on Friday in Bangkok.

The agreement aims to raise electricity sent from Laos to Malaysia by up to 300 megawatts in 2021, an increase from the first batch of 100MW.

The agreement was signed by Sontirat Sontijirawong, Thailand’s energy minister; Khammany Inthirath, Laos’s energy and mines minister; and Yeo Bee Yin, Malaysia’s energy, science, technology, environment and climate change minister.

The initial 100MW power trade deal was implemented in early 2018 and is scheduled to expire in December 2019.

Mr Sontirat said the energy purchase and wheeling agreement related to the LTM-PIP will be signed soon.

Under the LTM-PIP, the first day of transmission is set for January 2020, with expiry scheduled for December 2021.

The purchasing price is expected to stay at 2.50 baht per kilowatt-hour, but can be adjusted in line with the changing situation.

The price of the first LTM-PIP also stood at 2.50 baht per kilowatt-hour, with 2.20 baht going to Laos and 0.30 baht to Thailand.

“This grid connectivity project comes after the three counterparts conducted a feasibility study over many years,” Mr Sontirat said.

The second step is to expand the power trade from Laos to Singapore and Myanmar.

Mr Sontirat said other types of energy will benefit from this connectivity, such as trade in liquefied natural gas and renewable resources.

Southeast Asia aims for renewable energy to make up 23% of total power generation by 2025, a goal that will require significant overhauls to achieve.

Mr Sontirat said the connectivity will enlarge the regional economy and enhance energy security across the region.

Thailand is the chair of Asean for 2019. The country’s role in regional cooperation addresses many challenges, ranging from regional interconnection and promoting economic efficiency to securing the operations of individual power systems.

In addition, member countries can share a reserve margin, covering spinning reserves and power exchanges during varying peak load periods.

The regional cooperation is aimed at reducing budget investment for power generation and facilitating cross-border power purchases and exchanges within the region.

  • Energy Cooperation
5 September 2019

 – 

  • Cambodia

Thailand will on Thursday discuss with Cambodia the issue involving the energy-rich overlapping marine territory claimed by both countries on the sidelines of the ongoing meeting of Asean energy ministers, Energy Minister Sontirat Sontijirawong says.

The Energy Ministry will be in talks with Cambodia over the matter to find ways to cooperate for mutual benefit, Mr Sontirat said. Thailand is hosting the 37th Asean Ministers on Energy Meeting (Amem) and associated meetings in Bangkok. The five-day gathering on the theme “Advancing Energy Transition through Partnership and Innovation” ends on Friday.

The meeting is aimed at discussing energy collaborations among Asean states, dialogue partners and international energy organisations to achieve energy security, affordability and sustainability in the region. While Cambodia’s economy is growing with increasing demand for electricity, Thailand has surplus electricity generation. The countries will have to discuss measures to respond to each other’s needs, Mr Sontirat said, adding Cambodia has plans to expand its electricity-production capacity in Thailand and Thailand is ready for joint investment.

Initially, Cambodia has expressed interest in buying electricity from Thailand and investing in a coal-fired power station in Koh Kong to supply electricity to Cambodia, Mr Sontirat said, adding the coal-fired power plant will be located near the border. The project will give parties from Thailand — such as the Electricity Generating Authority of Thailand, and national oil and gas conglomerate PTT Plc — an opportunity to co-invest, Mr Sontirat said.

He also said he has been informed that PTT is also interested in expanding its electricity business in other neighbouring countries such as Myanmar. The government is ready to promote the Thai private sector to pursue business growth in the region with a target to support a regional power grid connection. Also, Asean has a plan to increase the use of renewable energy by 23% in 2025 in the region while Thailand has also set an increasing target of 30% for renewable energy use, the energy minister said.

He added Thailand has its sights set on becoming a leader in the production of renewable energy — particularly derived from farm crops — as efforts are under way to push for the One Community, One Alternative Energy policy. The Energy Ministry will present the matter to the National Energy Policy Committee next Thursday.

Meanwhile, Prime Minister Prayut Chan-o-cha said Asean is expected to face challenges in the energy sector as energy is crucial to development. Each country’s energy use and production will now be determined by their abilities to adapt to the energy challenges of the particular circumstances of their respective countries, Gen Prayut said in his opening address at the meeting of Asean energy ministers.

“Right now, we are transtioning to the era of future energy and Asean’s energy consumption and demand are increasing by the day due to rapid economic and social growth. Clean and renewable energy may be the key energy source in the near future. Therefore, developing and investing in energy markets with technologies in both fossil and non-fossil energy development will be crucial to the region’s energy security,” Gen Prayut told the gathering. The prime minister also applauded the power trading project involving Laos, Thailand and Malaysia.

The project is aimed at enhancing energy connectivity in Southeast Asia through multilateral electricity with Laos and Malaysia, which is expected to triple electricity trading among the countries.

Gen Prayut said the project will also help increase cooperation among other members of the regional grouping if they are interested in taking part in the project, which in turn will help boost the connectivity of the Asean power grid.

The project is part of the first phase of the Asean Plan of Action on Energy Cooperation which aims to achieve regional integration and connectivity.

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