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  • Others
15 July 2019

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  • Philippines

MANILA, Philippines — The Department of Energy (DOE) is finalizing the country’s smart grid policy and roadmap to help further bring down power rates and to address modern challenges in the power sector.

The DOE has issued the draft department circular titled “Providing a National Smart Grid Policy Framework for the Philippine Electric Power Industry and Roadpmap for Distribution Utilities” as it seeks industry input for the new policy.

Through the circular, the agency is looking to transition the Philippine power system into a smart grid by 2040.

Turning into a smart grid may improve grid reliability, efficiency, flexibility and resiliency. It will also push for consumer empowerment as it will allow the monitoring and managing energy consumption, and promote new emerging technologies such as electric vehicles, net metering, smart monitoring equipment and appliance.

If achieved, the country’s power grid will be capable of self-healing, and allow full customer choice with the full implementation of Retail Competition and Open Access (RCOA), Renewable Portfolio Standards (RPS), Green Energy Option (GEOP), and Net Metering.

Through the country’s Retail Competition and Open Access (RCOA) program, large electricity consumers in Luzon and Visayas with an average monthly peak demand of at least one megawatt (MW) can apply to become a contestable customer in order to have the ability to choose its own electricity supplier.

RPS requires distribution utilities to source a portion of their power supply from eligible renewable energy producers while GEOP empowers end-users to choose renewable energy resources for their energy requirements.

Meanwhile, under the net metering program, households with renewable energy installations—such as solar, wind or biomass—not exceeding 100 kw can sell electricity they generate in excess of what they can consume directly to their distribution utility.

The smart grid vision will also promote the development of optimized energy storage systems (ESSs), energy management systems (EMSs), distributed energy resources (DERs) management systems, and smart homes and cities.

Energy Secretary Alfonso Cusi previously underscored the need to introduce smart grid technologies all over the country because of their proven efficiency in significantly reducing systems losses and other operational inefficiencies.

Last May, Energy Assistant Secretary Redentor Delola said they are targeting to issue the smart grid policy and roadmap within the third quarter of the year.

In detailing the proposed roadmap, Delola said it would contain five levels toward the attainment of a smart grid network.

The first level will cover the planning and the pre-development stage for Advanced Metering Infrastructure (AMI), which is an integrated system of smart meters, communications networks and data management systems that enables two-way communication between utilities and customers.

The second level focuses on the pilot implementation for AMI, which includes the installation of smart meters, data management system, and data centers and servers.

Read more at https://www.philstar.com/business/2019/07/15/1934687/doe-finalizing-smart-grid-policy#s8ZzxPkTfORRMTDG.99

  • Others
15 July 2019

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  • Philippines

THE Department of Energy (DoE) is asking interested parties to comment on a draft circular that provides a national policy framework for smart grids and a “roadmap” for distribution utilities.

The move comes as distribution utilities have come up with their own initiatives to introduce smart grids that use innovative technologies to modernize the electric grid infrastructure.

The DoE said it saw a need to transform the Philippine power sector into “a secure, stable, flexible, sustainable, digitally enabled and interoperable system that provides reliable, efficient, and quality energy towards grid modernization and consumer empowerment.”

Under the proposed circular, the department has adopted several criteria for transitioning the power system into a smart grid by 2040: safety/reliability; efficiency; flexibility/sustainability; resiliency; and consumer empowerment.

The DoE said it hopes the Philippines will reach a level of smart grid development capable of “self-healing” and responding to recent policy issuances on Retail Competition and Open Access (RCOA); Renewable Portfolio Standards (RPS); Green Energy Option Program (GEOP); and Net Metering.

The department defines a smart grid as modernized electrical grids that use innovative technology with two-way and/or multi-way communication technologies, real-time monitoring and control systems.

The proposed policy framework anticipates the emergence of smart homes or buildings that are capable of monitoring and control of electricity and energy usage within their premises.

The grid reform plans also come amid the introduction of smart appliances and devices that allow real-time, automated, interactive technologies.

The DoE also expects the greater use of smart meters, or electronic real-time energy-measuring devices that are capable of remote connect/disconnect switching with two-way communication between the meter and the power utility.

Smart meters record consumption of electric energy in intervals of an hour or less, and communicate the information back to the power utility for monitoring and billing.

The proposed circular applies primarily to distribution utilities, including grid-connected, micro-grids and off-grid systems.

The DoE said if needed, it would coordinate with other government agencies to establish new incentive mechanisms for smart grid development.

It is enjoining the Energy Regulatory Commission (ERC) to promulgate, within six months from the effectivity of the circular, guidelines and to ensure proper and timely implementation of the policies to be set forth.

The proposal instructs the National Electrification Administration to provide concessional loans to smart grid projects of electric cooperatives. — Victor V. Saulon

  • Others
15 July 2019

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  • Myanmar

Myanmar has increased its electricity rates this month for both residents and businesses for the first time in five years in a move designed to fund investment in the sector and meet rising demand.

Electricity rates in Myanmar have been the lowest in the ASEAN region, which in the long run appeared to be financially unsustainable. The proposal for the revised rates was put forward by the Ministry of Electricity and Energy (MOEE) and was approved by parliament in April 2019.

Myanmar energy reform

The Electricity Supply Enterprise (ESE), a government regulated entity, is responsible for the distribution of electricity in Myanmar.

According to the country’s Ministry of Planning and Finance, the government incurred a loss of 507 billion Burmese kyat (US$333 million) in supplying the national grid during the fiscal year 2017/18, which rose to 630 billion kyat (US$414 million) in fiscal year 2018/19. These losses are expected to be reduced with the incoming tariff structure.

In Myanmar, domestic consumers include residential homes and religious buildings, whereas non-domestic consumers include companies, industries, embassies and international organisations.

Under the new rates, domestic consumers will continue to pay 35 kyat per unit (US$0.023) for the first 30 units, but beyond this level of consumption different rates will apply, depending on the number of units used. Similarly, a new rate regime will be introduced for non-domestic consumers.

Table 1: Comparison of electricity rates, Myanmar

According to the new rates, domestic consumers who used to pay 3,500 kyat for 100 units (US$2.3) will now have to shell out 6,050 kyat (US$3.97, not including the service fee. This represents a 72.9% increase, based on previous rates.

According to GlobalData, the country’s cumulative capacity has been growing at a compound annual growth rate (CAGR) of 8.9% during 2000-2018.

The country reported a cumulative installed capacity of 5.28 GW at the end of 2018 against 1.12 GW in 2000. The country witnessed growth in its power generation from 5,003 GWh in 2000 to 23,687 GWh at 9.02% CAGR. However, power consumption during the same period saw 9.6% CAGR during the same period. The country reported consumption of 16,716 GWh in 2018.

Myanmar has been a net power exporter since 2008. The country is expected to be net exporter till 2030 with power generation expected to reach 66,962 GWh by 2030, whereas the demand is expected to be around 51,208 GWh.

The earlier rates were applied as part of the Electricity Act of 2014. Since 2014, the nation’s cumulative installation has witnessed an average growth of 2.4% on a year-on-year basis. At the end of 2014, Myanmar reported cumulative installations worth 4.78 GW, which rose to 5.28 GW at the end of 2018.

During the same period, electricity generation witnessed growth from 16,678 GWh to 23,687 GWh at 9.2% CAGR. Power consumption during the same period increased by 11% CAGR. These rates were not helping to achieve investment in the power sector which is why the government had no other option but to revise the rates.

The new tariff structure will reduce the electricity subsidy and will stimulate the off-grid sector, which has been hamstrung by the low price of grid electricity. Projects related to solar panels are expected to become more commercially viable as a result.

The country witnessed rolling blackouts throughout the summer with power delivery lagging behind rising demand. To cater to the increasing demand, investment in the power sector is needed.

Under the new arrangements foreign direct investment (FDI) is expected to increase, which will see more private entities enter the electricity market.

With the revised rates now coming into effect, more electricity projects will become financially sustainable and developers will be more competitive. With greater investment in the nation’s energy infrastructure potentially in the pipeline, the expectation is that Myanmar will begin to bridge its electricity gap.

  • Electricity/Power Grid
15 July 2019

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  • Vietnam

Hanoi (VNA) – The Vietnam Electricity (EVN)’s Northern Power Corporation (EVNNPC) sold nearly 33 billion kWh of electricity during the January-June period, a year-on-year surge of 8.82 percent.

Of the total amount, 64.84 percent was purchased by the industrial sector, and the remainder acquired for daily life, up 8.22 percent and 9.21 percent, respectively, from the same time last year.

The corporation reported it completed 160 out of 366 projects to upgrade medium- and low-voltage power grids, making contributions to improving grid capacity and enhancing reliability of the power system.

Thirty 110KV projects have been put into operation, which means 926MVA have been added to the national grid. Besides, the company also installed 110.3 kilometres of 110kV transmission lines.

Power loss in the period was 5.15 percent, or 0.08 percent lower than the same time in 2018.

As of June, the firms put in solar panels with total designed capacity of 2,900 kWp for 287 customers, accounting for 58 percent of the plan assigned by the EVN.

In addition, the EVNNPC supplied medium-voltage power to 1,126 new customers. It took the firm an average 5.96 days to handle relevant procedures, down 0.31 day as stipulated.

In the second half of the year, the corporation will enhance measures to ensure safe and stable power supply for customers, with focus given to reducing power loss, accelerating construction of power work, and organising communication work on energy saving in summer.-VNA

  • Renewables
15 July 2019

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  • Cambodia

The Council of Ministers on Friday approved four solar projects that will produce a combined 140 megawatts.

For in depth analysis of Cambodian Business, visit Capital Cambodia
.

The body convened last week to review a raft of new laws and investment proposals, which included the four solar projects.

In a statement issued after the meeting, the government said the farms will all be located in different provinces – Pursat, Battambang, Banteay Meanchey and Svay Rieng – and that their production capacity will range from 20 to 60 MW.

These projects will start supplying the national grid by 2020 and 2021, it noted.

“Developments in solar energy are critical in dealing with the power shortage in the country,” the government said.

Keo Rattanak, director-general of Electricite du Cambodge, said last week that the country’s energy mix will change drastically in upcoming years.

“We will be able to produce at least 20 percent of our energy from solar systems in the next few years,” Mr Rattanak said during a forum on energy in Phnom Penh organised by the American Chamber of Commerce.

The goal is to diversify energy production, now largely dominated by hydroelectricity, which accounted for about 48 percent of all power consumed last year. Through this diversification strategy, the government hopes to put an end to the power shortages that have affected the country, Mr Rattanak said.

Speaking to Khmer Times in May, Sokun Sum, chairman of the Solar Energy Association of Cambodia, said Cambodia should focus on attracting investment in solar energy.

He said construction times for solar farms are lower than for hydropower dams, and with demand for electricity skyrocketing, Cambodia needs to build energy infrastructure as fast as possible.

He said up to five 60-MW solar farms can be built within seven months, while building a single hydropower dam can take up to five years.

“It has been brought up to our attention that power consumption in Cambodia has dramatically increased, mostly driven by construction projects. Therefore, investment in solar parks should go before hydropower, which now dominates domestic power consumption in the country,” he said.

In its statement last week, the government noted that the sector will soon have two new master plans. A strategy covering the years 2020-2030 is now being drafted by Japan’s Chugoku Electric Power, while another one for the years 2020-2040 is being drafted by Australian’s Intelligent Energy System.

Last year, Cambodia consumed 2,650 MW, a 15 percent increase compared to a year earlier. 442 MW were imported from Thailand, Vietnam, and Laos.

  • Others
14 July 2019

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  • Philippines

MANILA, Philippines — Local pump prices are expected to significantly increase as global crude prices surged last week.

Unioil Petroleum Philippines said motorists should expect hefty fuel price hikes on Tuesday.

“Diesel should go up by P0.65 to P0.75 and Gasoline should go up by P1.00 to P1.10,” Unioil said in its weekly forecast.

During last week’s trading, global oil prices increased in the first half of the week amid continuing Middle East tensions and production cuts of the Organization of Petroleum Exporting Countries (OPEC), Reuters reported.

It also said Brent crude reached a high of $66 per barrel as US crude inventories fell and the brewing storm in the Gulf of Mexico affected operations of major oil producers in the area.

Last week, oil companies raised gasoline prices P0.25 per liter while diesel price was reduced by P0.40 per liter and kerosene by P0.35 per liter.

Based on the data of the Department of Energy (DOE), year-to-date adjustments stand at a net increase of P5.15 per liter for gasoline, P3.30 per liter for diesel and P1.75 per liter for kerosene.

Read more at https://www.philstar.com/headlines/2019/07/14/1934493/fuel-price-hike-seen-week#lMptDF0EoIF8dmGU.99

  • Coal
13 July 2019

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  • Thailand

The state-run Electricity Generating Authority of Thailand (Egat) will start public hearings with stakeholders and local communities on Saturday in a bid to repower two existing units of the Mae Moh coal-fired power plant in Lampang.

Egat is budgeting 37 billion baht for development cost to repower Units 8 and 9 in Mae Moh district.

Units 8 and 9 have a combined power capacity of 540 megawatts with plans to upgrade to 660MW. Egat expects the two repowered units to have higher efficiency, less fuel consumption and lower emissions.

Units 8 and 9 are running on standby mode, and two power generators under the units will be decommissioned in 2022.

TLT Consultants was appointed to conduct the public hearing in order to make the environmental and health impact assessment report. Egat plans to finish the process by the end of July.

Benjaporn Boonyapookana, TLT’s environmental specialist, said the public hearing is expected to provide information to locals involved with the project.

“We will collect their opinions on the impact of repowering power generators in a bid to resolve possible problems,” she said.

The repowering plan for the Mae Moh power plant is in line with the new version of the national power development plan (2018-37) to maintain power security in the northern and upper-central regions.

Patana Sangsriroujana, Egat’s deputy governor for policy and planning, said the repowering plan budget has increased from 35 billion baht in previous estimations to 37 billion baht.

Mae Moh is Thailand’s first coal-fired power plant and has been operated by Egat since 1975.

Lignite coal from the Mae Moh basin serves the power plant.

Egat runs 10 units in the same location, producing 2,400 megawatts from Units 4 to 13. Units 1 to 3 were decommissioned during 1999-2000.

The Mae Moh plant can supply 50% of electricity to the North, 30% to the central region and 20% to the Northeast.

“The power generators at Units 8 and 9 are nearly 30 years old, and this coal-fired power plant is one of the country’s major sources of power,” Mr Patana said.

But Egat’s power generator units in Mae Moh are ageing, he said, and Egat is proceeding with the repowering plan for Units 4 to 7 by completing construction for the power generator replacements.

Egat will start a test-run period soon before commencing commercial operations in the second half of 2019.

The replacement of Units 4 to 7 and the repowering project were approved by the government on Aug 19, 2014. The four units had combined capacity of 560MW.

The cabinet on Feb 26 approved expansion of the total power capacity to 655MW.

Mr Patana said the replacement and repowering project will use lignite coal for power generation with ultra-supercritical technology, which is the most modern and requires 20% less fuel for power generation.

This result is seen in lower CO2 emissions compared with the former subcritical technology.

“Egat wants to ensure that emissions released during the power generation process are better than the standard criteria and not a source of PM2.5 particles,” Mr Patana said. “The PM2.5 level in Mae Moh district is lower than in nearby provinces.”

He said the Mae Moh power plant will be developed in the future as a smart city with efficient power management.

  • Bioenergy
13 July 2019

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  • Philippines

MANILA, Philippines — The group pushing for the increase of coco methyl ester (CME) content in biodiesel is settling for a compromise of a staggered implementation of the hike which was last adjusted 12 years ago.

The Philippine Biodiesel Association raised a proposal to increase the percentage of biodiesel component blended in locally available diesel to five percent by 2021 from the current level of two percent.

The group, which is comprised of 11 companies, is pushing for a gradual adjustment, to three percent by end of the year, to four percent by 2020 and five percent in 2021.

Asian Institute of Petroleum Studies Inc. president Rafael Diaz debunked the claims of the Department of Energy that increasing the blend would result to a P2 per liter increase in pump prices.

“How they came about that P2 is erroneous. The increase is just P0.20 per liter. We have to work that out so it can be corrected,” Diaz said in a briefing.

“That is the hurdle we have to address. The DOE has a mindset of their own. We have to consider the B3 as compromise,” he said.

Biodiesel is a blend of diesel fuel and CME, a derivative of coconut oil. The current diesel blend in the country consists only of two percent CME and 98 percent regular diesel.

Under the Philippine Energy Plan 2012-2030, Philippine biodiesel should contain at least five percent CME by 2020.

“The Philippines was the pioneer in Southeast Asia in blending biodiesel. But, when Indonesia and Malaysia followed suit, they immediately jumped to five percent using palm-biodiesel. Indonesia is already considering increasing that level to 30 percent. Why are we getting left behind?” TPBA spokesperson Dean Lao said.

Further, advocates claimed that increasing the CME blend may not lower pump price of diesel at this time, but the fuel savings translates to measurable mileage gain, and the savings can be substantial.

“Coco biodiesel makes diesel fuel burn easily and completely, leading to more power and mileage improvement. If there is a 10 percent mileage improvement and diesel cost is at P40, you can effectively save P4 per liter,” Diaz said.

An increase in coco biodiesel blend to five percent is seen translating to 350,000 metric tons of coconut oil consumption, which is about 29 percent of yearly coconut oil production.

Locally produced biodiesel is still more expensive at P45 to P90 per liter compared with imports from Brazil priced at P32 per liter. Even imported ethanol fuel is cheaper at P16 per liter versus the domestic at P53.

The main objective of the Biofuels Act is to achieve a sustainable future by reducing importation of refined fuel such as diesel and gasoline, and increase the income of farmers, at the same time.

Agriculture stakeholders have long been calling for the increase as this will address the problem of plummeting copra prices.

Philippine biodiesel has the lowest percentage of vegetable oil blended to regular diesel among ASEAN countries.

For instance, Malaysia and Thailand mandate that the biodiesel sold in their markets should contain at least seven percent palm oil, while Indonesia is much higher at 20 percent.

Read more at https://www.philstar.com/business/2019/07/13/1934181/biodiesel-group-seeks-staggered-hike-fuel-blend#CDM5vJBK23161Ryl.99

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