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Renewables

First solar power plant in Binh Dinh inaugurated

13 July 2019

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Vietnam

NDO/VNA – The Cat Hiep solar power plant was officially inaugurated in Binh Dinh’s Phu Cat district on July 12, becoming the first of its kind in the south central coastal province to join the national grid.

Invested by the French-based Quadran International company and Truong Thanh group of Vietnam, the facility worth over VND1.03 trillion (US$44.29 million) spans more than 60ha. With 150,000 panels and a capacity of 49.5MWp, it can generate between 78 and 80 million kWh per year.

During its test run from May 20 to date, Cat Hiep produced more than 7 million kWh of electricity, earning over VND15 billion in revenue.

Chairman of the provincial People’s Committee Ho Quoc Dung hoped the operation of the plant will lead to the development of similar ones across Binh Dinh.

He noted solar electricity will help enhance the capacity of the national grid, capitalise on renewable sources of energy, and add more to the provincial budget collection.

The local leader pledged to assist investors in the power sector and others in tackling hurdles and implementing their projects.

Renewables

ERC readies renewed push for solar rooftop scheme

12 July 2019

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Thailand

The Energy Regulatory Commission (ERC) is gearing up to promote the household solar rooftop scheme and encourage participation after the current enrolment fell short of expectations.

This programme began in May after the launch of the national power development plan for 2018-37. The latest plan focuses on new solar power generation of 10,000 megawatts, all coming from the solar rooftop type installed by homeowners.

Power capacity under the scheme starts at 100MW per year during 2019-27 for households and increases solar power generation to 1,000MW per year from 2028 on, ultimately reaching 10,000MW by 2037.

As of early July, the ERC reported that the enrolment from households achieved only 8.74MW from the target of 100MW.

Narupat Amornkosit, secretary-general of the ERC, said the commission will promote the scheme heavily over the next two weeks.

“Many homeowners do not yet know about this scheme from the ERC and other state utilities, so we will step up efforts to promote it again,” Ms Narupat said.

“Our expectation of 100MW power generation will end in December, so we have plenty of time to work on it.”

Last week, the Department of Alternative Energy Development and Efficiency said it would ask the Energy Ministry to launch a revised solar scheme for the public.

The revised plan should add solar power farms in order to attract more private investors to this scheme.

Solar power, which has been promoted in Thailand since 2007, will be sold to the state grid under power purchase agreements at 9,846MW.

Moreover, a rising power tariff rate, higher generating efficiency and the lower cost of solar panels have attracted hundreds of business operators to install solar rooftops as an independent power supply (IPS) over the last five years.

As of December 2018, power generation from IPS was 1,478MW, jumping from only 400MW in early 2017.

Separately, the ERC yesterday approved the continuation of the fuel tariff (Ft) rate of 3.64 baht per kilowatt-hour for September-December, the third period of 2019.

Power bills have been stable over the four periods from September 2017 to December 2018 at 3.60 baht per kWh, then the ERC increased them for the first period of 2019, January-April, to 3.64 baht and maintained the rate for the second period.

Increasing the Ft rate would affect consumers’ power bills and overall domestic demand, Ms Narupat said.

“The Thai economy is suffering from the instability of the US-China trade war and shrinking exports,” she said, adding that the ERC thus decided to maintain the Ft rate for another four months.

Ms Narupat said the ERC is set to allocate 9 billion baht to manage the Ft rate for September-December.

Of the budget, 3 billion baht will come from the ERC’s power regulation and management budget from the previous year and 6 billion baht will come from spending of the three state power utilities (the Electricity Generating Authority of Thailand, the Metropolitan Electricity Authority and the Provincial Electricity Authority) to handle the higher cost of power generation.

“This budget will be managed temporarily to support maintaining the Ft rate in the third period of 2019,” Ms Narupat said.

The ERC forecasts electricity demand during September-December at 64.42 billion kWh, down 5.8% from May-August, in line with the seasonal decrease.

Energy Efficiency

New laws to tighten pollution control and raise energy efficiency

12 July 2019

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Malaysia

KUALA LUMPUR: The government will table new laws on pollution control and energy efficiency in the Dewan Rakyat soon, said Energy, Science, Technology, Environment and Climate Change Minister Yeo Bee Yin.

“The new law on Pollution Control to replace the Environmental Quality Act 1974 will see greater enforcement powers and stiffer punishments,” she said.

Yeo was officiating at the opening ceremony of the Evolution of ESG Investing seminar, hosted by Malayan Banking Bhd (Maybank) and Bursa Malaysia Bhd here today.

Also present were Bursa Malaysia chief executive officer Datuk Muhamad Umar Swift, Bursa Malaysia chief commercial officer Selvarany Rasiah and Maybank Kim Eng Group chief executive officer Ami Moris and Maybank Investment Bank Bhd chief executive officer Fad’l Mohamed.

Provisions, which deal with restrictions against air, noise, land, inland waters and marine pollution, as well as open burning, will see heavier fines under the proposed new act.

These range from a maximum RM5 million fine for discharging oil into Malaysian waters to a RM100,000 fine for open burning offences.

Most of the pollution offences will soon come with up to five years in jail, with a daily fine of RM5,000 for as long as the offence continues after the issuance of a notice.

A trust fund is also being mulled to reward whistleblowers facilitating more effective enforcement.

The proposed law will also provide the authority to issue a “stop work” order on any premises owner indulging in illegal dumping of scheduled waste that threatens the environment or public health and security, frequently flouting the law and the.

Failure to abide by the order will result in a fine of up to RM500,000, five years in jail or both under the proposed new law.

Currently, offenders convicted under Section 34A of the Environmental Quality Act, are only liable to a fine of not more than RM500,000 or a prison term of up to five years.

The government now wants to raise the penalty to RM1 million or a maximum five years in prison – or both for failure to carry out an Environmental Impact Assessment (EIA).

Last month, Yeo presented Energy Efficiency and Conservation Bill at the Cabinet Meeting and it was approved.

This new law, to be tabled before Parliament, seeks to further incentivise building owners to reduce energy wastage to be more efficient via adoption of green technologies.

Others

Senators approve 2019-2023 development plan, power projects

12 July 2019

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Cambodia

Senators yesterday unanimously agreed to pass the National Strategic Development Plan of 2019-2023 worth $57.7 billion in capital.

In order for the budget plan to be finalised, it will need to be reviewed by the Constitutional Council and approved by the King.

The vote was held during yesterday’s plenary session when senators also unanimously approved plans by SPHP (Cambodia) to invest in a new hydroelectric dam in Pursat province, as well as plans by Schnei Tech to build solar farms in the provinces of Pursat and Kampong Chhnang.

Prior to the vote, 48 out of 62 senators debated for hours during the session, which was led by Senate president Say Chhum.

The draft for National Strategic Development Plan of 2019-2023 was approved by the Council of Ministers during a meeting presided by Prime Minister Hun Sen on June 7 and the National Assembly unanimously approved it earlier this month.

Senate secretary-general Oum Sarith said in a statement that NSDP 2019-2023 aims to promote inclusive growth and work toward achieving the Sustainable Development Goals of 2016-2030.

Mr Sarith said it would also help transition Cambodia from a lower-middle income country to an upper-middle income country in 2030.

“This strategic development plan plays an important role in implementing the government’s priority policy, which is stated in the Rectangular Strategy-Phase IV and the Sustainable Development Goals of 2016-2030,” he said.

In order to have funding for NSDP 2019-2023, the private sector will need to contribute $43.4 billion, or 75 percent of the budget, while $14.3 billion will come from the government.

Regarding the power projects, the dam in Prusat will be able to produce 80MW of electricity and will be built on a build-operate-transfer scheme.

The dam will need a capital of more than $231 million and that SPHP (Cambodia) has been granted a 39-year concession for the project.

According to Mines and Energy Minister Suy Sem, the Pursat hydro dam project will affect the homes of 347 families and farmland belonging to 296 families in 5,355 hectares of land. He added that 600,724 hectares of forest land will also be affected.

However, he said the dam will be able to produce up to 70 percent of its total capacity during the dry season.

“It’s different from other projects because other projects can only produce 30 percent during the dry season, or even less, such as this year, for example,” Mr Sarith said.

During the session yesterday, Senator Mam Bun Neang asked about the recent power shortage and raised concerns that people were misunderstanding their electricity bills.

Keo Ratanak, general director of Electricité Du Cambodge, said next year, the government will change the language used on electricity bills from English to Khmer to avoid misunderstandings.

“The new bill will include the records of previous months, then they [customers] can compare their usage,” Mr Ratanak said. “We are going to do this to have them understand and cut down their usage.”

He noted that any EDC official involved in corruption and double standards when it comes to dealing with wealthy and poor customers, will be sacked.

“If EDC officials commit something wrong, we will punish them, like by firing them from their position or give them administrative discipline, based on our internal regulations,” Mr Ratanak added. “Corrupt violators will face the law. If any lawmakers found irregularities, they can file a complaint to us.”

He noted that as of this year, rural areas in the Kingdom now have 83 percent of the national electricity supply.

He said that Cambodia has become one of the fastest electricity suppliers in least developed countries.

According to the Mines and Energy Ministry, Cambodia produced 2,650 MW last year, of which 1,329 megawatts, or 50 percent, came from hydroelectric dams.

Renewables

Indonesia’s Medco Energy sells 49% stake in geothermal subsidiary

12 July 2019

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Indonesia

Indonesia’s listed energy company Medco Energi Internasional is selling a 49 per cent stake in subsidiary Medco Cahaya Geothermal (MCG) to New York-listed Ormat Geothermal Power for an undisclosed amount, according to a stock exchange filing.

Medco Energi owns 100 per cent of MCG through its arm Medco Power Indonesia (MPI).

MCG is the owner of a 110 MW geothermal power plant in Blawan-Ijen, East Java. The company has an electricity purchase agreement with the state-owned Perusahaan Listrik Negara (PLN) for 30 years. The project is currently still in the development phase and commercial operations are expected to start by the end of 2022.

Medco Energi has previously partnered with Ormat Geothermal for the development of the Sarulla geothermal power plant project in Tapanuli, North Sumatera.

The latest partnership with Ormat Geothermal is expected to provide additional value to Medco stakeholders and support the Indonesian government’s push to further develop the renewable energy sector, said MPI chief executive Eka Satria.

According to MPI’s website, MCG is entitled to a 35-year geothermal concession from Indonesia’s Ministry of Energy and Mineral Resources.

MPI had signed an agreement with Philippines-based Aboitiz Power Corporation in 2015 to sell a 49 per cent stake in MCG. Aboitiz announced its withdrawal from the joint venture in early 2017 to focus on other ongoing and pipeline projects.

Read more at: https://www.dealstreetasia.com/stories/medco-energi-geothermal-unit-144658/

Others

Cheaper power bills on the way, thanks to state subsidies

11 July 2019

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Thailand

Electricity customers across the country are likely to receive cheaper bills from September to December this year, as the automatic FT (Float Time) charge will be subsidised over those four months, Office of Energy Regulatory Commission (OERC) chief Narupat Amornkosit said on Thursday.

Secretary-general Narupat said that around Bt3 billion of the subsidy would come from a special fund created by all three state-funded electricity companies: the Electricity Generating Authority of Thailand (EGAT), Metropolitan Electricity Authority (MEA) and Provincial Electricity Authority (PEA).

She said that another Bt6 billion would then be further subsidised by those three agencies using any money available to them. The total Bt9 billion subsidy would make per-unit FT charge drop to Bt11.60, reducing from the Bt16.82 between May and August.

Narupat said the OERC initiated the subsidy to help consumers and the country as a whole, coupled with another key factor, the stronger baht.

She said the OERC would need to see whether the subsidy would also be available in the first four months of 2020 and that would depend on many factors, including the value of the baht at that time and the price of coal and oil.

Renewables

Penang govt to go big on solar farming with TNB

11 July 2019

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Malaysia

GEORGE TOWN: The Penang government today said it wants to venture heavily into solar farming, spearheaded by its two local councils, in a push to harness renewable energy.

Local Government Committee chairman Jagdeep Singh Deo said the Seberang Perai Municipal Council (MPSP) had signed up for a solar power programme with Tenaga Nasional Berhad.

He said the Penang Island City Council was also ready to go big on solar farming.

Jagdeep said MPSP had signed an agreement with TNB as part of the SARE renewable energy plan in May, making it the first local council in the country to sign such a deal with TNB.

SARE or Supply Agreement of Renewable Energy, is a programme that covers the related agreements and policies for the supply and consumption of renewable energy in Malaysia.

With SARE, there is no upfront cost to install photovoltaic panels, which can be leased from a company through a fee agreed upon and would be reflected on the TNB bill.

The solar panel installation will let MPSP sell excess power generated by the panels to TNB and get energy credit on a “one-on-one offset basis” to further reduce its bills.

Jagdeep said that under the plan, solar panels had been installed on three of MPSP’s properties in Bukit Mertajam, while another 31 buildings on the mainland had been identified as potential for solar farming.

He said the Penang Island City Council had also identified 15 spots on the island to be used for possible solar farming projects.

Jagdeep also said the state government would spend RM75 million to convert all street lights from using conventional bulbs to LEDs by 2022 to reduce power consumption and bills in the long run.

He said 17,542 street lights would be replaced on the island and Seberang Perai.

He said Penang had 105,813 street lights in total – 34,104 of them on the island and the rest on the mainland.

A total of 31,596 are local government-owned while TNB owns 74,217.

He said 17,451 street lights out of 34,104 had been converted to LED on the island so far.

“This will reduce power costs by 50% to 60%. Currently, the Penang Island City Council pays RM6 million for street lights a year. I think we will save half of that sum when we convert all the lighting to LED,” he said.

Renewables

Malaysia wants more solar investments

11 July 2019

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Malaysia

KUALA LUMPUR: The government is committed to fulfilling its promise in the Pakatan Harapan manifesto to raise Malaysia’s installed capacity of renewable energy from two per cent last year to 20 per cent by 2025.

“We are on track. Although some detractors say this renewable energy target in our country’s power mix may seem ambitious, I believe it is doable,” said Energy, Science, Technology, Environment and Climate Change Minister Yeo Bee Yin.

In making renewable energy financing more attractive, Yeo said the government had expanded the list of assets available for the Green Investment Tax Allowance from nine to 40 items.

Many of these are renewable energy items for Biogas, Biomass and Small Hydro installations.

Yeo was officiating at the opening ceremony of the Evolution of ESG Investing seminar hosted by Malayan Banking Bhd and Bursa Malaysia Bhd here today.

In February this year, the government called for bids for RM2 billion projects under the third round of the large-scale solar (LSS) scheme to increase electricity generation from renewable energy.

Yeo said the government would continue to host more bids for LSS power projects.

“In the next round, there will be some changes on how we will tender the LSS project. It will be more innovative to lower costs,” she added.

Yeo expects commercial and industrial buildings to tap into solar and be early adopters of the revised Net Energy Metering (NEM) scheme.

The NEM offers those who opt for solar energy lower tariffs, tax incentives, solar leasing programmes, and reduced electricity bills through the one-on-one offset, where every 1kWh exported to the grid will be offset against 1kWh consumed from the grid.

It was reported that the government had allocated a 2019 NEM quota of 500 MW, with 450 MW allocated for commercial and industrial buildings, and the remaining 50 MW for residential buildings.

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