TAGUIG CITY, Aug. 14 — The Department of Energy (DOE) shall be conducting the opening of applications for nominated areas under the Philippine Conventional Energy Contracting Program (PCECP) on August 16 (Sulu Sea Basin), 19 (Northwest Palawan Basin), and 20 (Southeast Luzon Basin) at the agency’s headquarters.
Each of the three nominating companies has complied with area clearance and nomination requirements prescribed under Department Circular (DC) No. 2017-12-0017 on the PCECP Circular and Guidelines.
Challengers have until 11 am on each day to submit their application requirements before bids are opened at 1:30 pm.
The DOE has setup a one-stop-shop at the venue to accommodate any last-minute submissions from challengers until the prescribed deadline.
Members of the Centralized Review and Evaluation Committee (C-REC) will be spearheading the bid opening activity to run the “completeness check” for each submitted PROPOSAL. The lack of any documentary requisite in the PCECP Guidelines and Application Checklist, which includes legal, technical and financial qualification documents, will warrant an automatic disqualification.
On the other hand, qualified applications shall be subjected to further exhaustive evaluations from the C-REC, before the endorsement of the highest-ranked application to the Secretary. This would then be followed by the signing of a corresponding Service Contract by the President.
The DOE is pushing to reinvigorate petroleum exploration and development activities in the country to serve as a cushioning measure against the volatility of oil prices, which has a direct impact on the costs of transport and power. One successful case is the Malampaya Deep Water Gas-to-Power Project, the largest natural gas industrial project in the Philippines, which recovered all costs in four years.
Thus, the Department is committed to ‘Explore, Explore, Explore’ in its pursuit of energy independence, security, and sustainability through the effective and reasonable development of all indigenous energy resources in the Philippines. (DOE)
The funds will be used for tech development, strategic hires to enhance Electrify’s AI and blockchain capabilities, and regional expansion plans.
Electrify said it is currently in talks with potential investors in Asia Pacific.
The company currently provides intelligent price comparison tools to help customers find the most suitable plans for their needs. It claims to have transacted more than 60 GWh of electricity for commercial and industrial customers in Singapore since 2017, with about 500 companies saving a total of S$1.5 million.
As countries around Asia start to deregulate their energy markets, Electrify said it sees Singapore as a test bed for its blockchain and peer-to-peer model.
The company’s peer-to-peer energy trading platform, Synergy, is set for a commercial trial in the country in late 2019. Electrify said it is currently exploring collaboration opportunities with established energy players and regional utilities to bring the technology into markets like Japan, Thailand, and Australia.
“We’ve seen keen interest among companies and consumers in Singapore for renewable energy. This has led to the growing proliferation of solar rooftop installations, a trend that we’re expecting to grow by addressing a largely unmet demand for renewable energy,” said Martin Lim, CEO and co-founder of Electrify.
According to statistics from Asian Development Bank, global power demand will soar by 58% in 20 years. Asia’s annual energy expenditure alone will increase from US$700 billion to US$1.6 trillion by 2035.
During this month, the country’s total power production has reached over 2,900 MW, according to the figures from the Ministry of Electricity and Energy.
On July 8, the maximum power production hit 3,178 MW. On August 2, the maximum power production amounted to 2,913.8 MW. The power production declined by over 264.2 MW.
Yangon consumes over 1,131 MW, accounting for 39 per cent of the nationwide power consumption. Mandalay consumes 525 MW or 18 per cent of the total power, the Nay Pyi Taw Council Area, over 123 MW or over four per cent and other regions and states, 1,149 MW or over 39 per cent.
The power production declined by over 250 MW when the highest power production rates from early January and early May, were compared, according to the figures from the Ministry of Electricity and Energy.
Currently, Myanmar can produce about 3,800 MW. Plan is underway to produce additional 3,000 MW in the next three years, said Win Khaing, Union Minister for Electricity and Energy.
The country’s annual power demand has increased around 19 per cent every year. Now the country needs 300 to 500 MW a year. The ministry can fully satisfy the power demand in time through the long-and short-term plans, the minister added.
Under the National Electricity Plan (NEP), Myanmar has set a goal of ensuring the nationwide power access by 2030.
Jakarta (ANTARA) – Indonesia has a sluggish development of renewable energy power plants, which is necessary to fulfill the stockpiles of its national electricity, Vice President Jusuf Kalla said Tuesday.
“This condition must collectively be responded to,” he told attendees at Indonesia’s 7th International Geothermal Convention and Exhibition 2019 here Tuesday. Kalla encouraged the Energy and Mineral Resources Minister and his deputy to sit together with those from the state-owned electricity firm PT PLN (Persero) and business associations to find solutions to this problem.
Some legal issues need to be clarified to ease the fears of individuals involved in the construction of power infrastructure and the execution of policies, he said.
Fear of legal issues often arising from corruption cases worries those attempting to meet the nation’s electricity demands and infrastructure development projects, Kalla said while quoting the example of several members of PLN’s board of directors who had been jailed.
Once the legal implications are clarified, the state officials and those from the private sector would not be in two minds while executing energy-related policies, he said.
The performance of the PLN and its private partners in the completion of electricity infrastructure projects to meet the people’s rising demands has seen an improvement every year, Kalla said.
Regarding PLN’s infrastructure capability, House of Representatives Deputy Speaker Fadli Zon called for revamping the state-owned electricity firm to prevent a recurrence of the major blackout August 4 which affected certain parts of Java Island, including Jakarta.
“The major blackout that occurred August 4 is being called ‘blackout 4.0’,” Fadli Zon noted in a statement on the power outage.
This so-called “blackout 4.0” proved that PLN’s digital and other infrastructure is so fragile that it could be paralyzed easily, Zon who is also the Great Indonesia Movement (Gerindra) Party’s deputy chairman, stated.
The blackout that hit the regions of Jakarta, Banten, West Java, Central Java, and East Java was nothing short of nightmarish for scores of Indonesians and foreign travelers.
On that Sunday, the power outage disrupted the Indonesian capital city’s commuter line and MRT services, massively hindering the people’s mobility.
It also affected the business activities of several small and medium enterprises (SMEs) that did not possess backup generators.
PT PLN (Persero) extended its apology and claimed that it was caused by the tripping of the Suralaya Turbine Gas from numbers 1 to 6, while its turbine gas number 7 was off.
Simultaneously, the Cilegon Gas Turbine Combined-Cycle (GTCC) Power Plant also tripped. As a result, residents living in Jakarta’s greater areas were hit.
The blackout also hit those residing in West Java Province’s areas due to troubles experienced in the 500 kV Ultrahigh Voltage Transmission. The affected areas comprised Bandung, Bekasi, Cianjur, Cimahi, Cirebon, Garut, Karawang, Purwakarta, Majalaya, Sumedang, Tasikmalaya, Depok, Gunung Putri, Sukabumi, and Bogor.
MANILA Electric Co. (Meralco) expects to complete “soon” a study that will prove whether electric vehicles (EVs) can help power the grid and help ease energy demand during times when supply is deficient.
“It will happen soon,” said Anthony Agoncillo, Meralco’s EV charging station product manager, when asked about the status of the utility’s vehicle-to-grid project.
“It’s still in the test case,” he said, referring to the partnership with Mitsubishi Motors Philippines Corp. “They’re our partners. They’re the vehicle providers for that test.”
He said test would try to prove whether the vehicle-to-grid concept is feasible, and how it would affect the power distribution utility in terms of power quality, changes in frequencies, and how safely it can be integrated into system
“We saw that one of their units, Outlander model 2019, worked for vehicle-to-grid technology. So, yes, there’s a breakthrough in terms of us proving that it can power a small room in the house,” he said.
Mr. Agoncillo said it would be far-off to consider the project as helping to ease power demand similar to Meralco’s interruptible load program in which it enlist entities with their own power generators to run their systems when the grid’s reserve power reaches critical levels.
He said globally, similar studies are also conducted to answer whether power from vehicles or from utility-scale batteries can help energize the grid, or the interconnected network of power transmission lines and substations.
“But as of now, what we can only say is what we’ve tested and what we’ve seen from Meralco [is] Mistubishi Outlander powering a small room in the Meralco power lab using a V2G (vehicle-to-grid) charging pod. So it’s not only about the vehicle itself. There’s also a necessity to put up a charging facility, a charging pod, that can draw the energy from the battery,” he said.
He said the company has yet to demonstrate the project’s viability to the Department of Energy, although the agency is aware of Meralco’s EV power lab and the vehicle-to-grid project.
“For us, again we’re really doing this mostly to be able to test EV technologies,” he said. “We’re looked at as the expert not only in electricity but also in innovations related to electricity,” he said.
“So again, these technologies like vehicle-to-grid, even the vehicle itself, the chargers, AC charging, DC fast chargers, we really try to understand what it will do because we also need to understand what will be the impact to the grid afterwards,” he added. — Victor V. Saulon
MANILA, Philippines – President Rodrigo Duterte has signed a law that spares Filipinos the burden of paying for certain costs in their electricity bill.
Senator Sherwin Gatchalian, chairman of the Senate committee on energy, announced on Tuesday, August 13, that Duterte has signed Republic Act No 11371 or the Murang Kuryente Act.
In a blow to any hopes Cambodia may have had of mimicking the manufacturing and industrialisation might of Thailand or Vietnam, the head of the country’s electricity authority on Thursday (Aug 8) said that the cost of electricity in Cambodia will “never be as cheap” as in neighbouring countries.
Electricite Du Cambodge (EdC) director-general Keo Rottanak spent almost two hours defending the utilities electricity bills and metersJohn Le Fevre
The discouraging news for foreign investors and consumers came during a two-hour long defence by Electricite Du Cambodge’s (EdCs) director-general, Keo Rottanak, of it electricity meters.
Since Cambodia was hit with daily six-hour long black-outs in March consumers in their hundreds have been complaining on social media of higher electricity bills than for the similar period last year.
Denying any fault with the utility’s meters, Mr Rottanak explained that consumers were using more electricity and therefore their bills were higher.
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“If you leave your computer plugged in and turned on; if you use a washing machine, then you will use more electricity and have a higher bill”, he explained repeatedly.
Higher consumption despite lengthy outages
Cambodian electricity users claim metered use is up despite lengthy daily power cuts
The explanation is not sitting well with many consumers, however, who point to 30 hours of less supply, but metered consumption 50 per cent or more above a similar period a year before with no major change in usage. Some even claim the increases have occurred despite taking active steps to reduce consumption following a higher than expected bill a month before.
In one Facebook discussion a consumer said “Our(sic) has increased 25% with a concerted effort to reduce usage[,] something fishy is definitely going on”.
Another said, “High electric bills from month of march to present. It’s almost tripled the price from the normal monthly bill (last year)”, with yet another stating “USD 1000+ for a 4,50sqm (about 48,400sq.ft) office working Monday to Friday”. One business owner said he had complained three or four times this year about his electricity consumption readings being higher than last year and each time EdC inspected the meter they said it was operating correctly.
Mr Rottanak said concerned consumers should could contact the hotline number and EdC will investigate their complaint. They should not complain on social media. People who were still unhappy after the inspection could buy a replacement meter, though no cost was provided. In Cambodia there is no independent meter testing body, and meters remain the property of EdC.
When AEC News Today contacted the hotline we were told to bring our EdC bill to the office where a form needed to be completed.
To assist low-income earners, particularly garment workers, the power company had installed some 30,000 new power meters Mr Rottanak said, in the process disconnecting and prosecuting people with unapproved connections.
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Electricity a tax-free bonus for landlords
Landlord installed sub-meters on the tenant side of a lawful connection are not subject to regulation however, as is how much landlords can charge. Tenants being charged double the EdC rate is not unheard. However, without an EdC bill a complaint cannot be lodged, leaving private renters at the mercy of landlords who pocket the difference as a tax-free bonus.
New EdC electricity bills (R) contain no English language except the words ‘Hotline Tel’John Le Fevre
Electricity prices were lowered at the start of this year as part of the ruling Cambodia People’s Party (CPP) “sharing policy” promised before last year’s July 29 national elections.
Those using up to 10kWh per month saw prices drop from KHR 480 to KHR 380 (about $0.12 to $0.10) per kWh, while those using more than 200kWh per month saw the price reduced from KHR 770 to KHR 740 ($0.192 to $0.185) this year, with a KHR 10 ($0.003) per kWh cut in 2020. For consumption of between 11 and 15kWh per month the price drop from KHR 610 to KHR 480 ($0.153 to $0.12).
Medium voltage commercial users pay KHR 540 ($0.135) per kWh, while 22kVA commercial users pay KHR 636 ($0.1590) per kWh. Electricity costs industrial usersKHR 440 ($0.1470) per kWh for 22kVA. For 2020 these rates will drop by between KHR 10 and KHR 20 ($0.003 to $0.005).
By comparison the residential electricity price in Thailand ranges from Bt 3.5 to Bt 4.42 ($0.105 to $0.143), while the residential price for electricity in Vietnam ranges from VNĐ1,678 per kWh to VNĐ2,927 ($0.072 to $0.126).
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High electricity costs a disincentive for some
The high cost of Cambodia electricity compared with its neighbours is one of the most frequently cited disincentives by foreign investors. The greater ease of doing business and an available pool of skilled workers, albeit it at higher salaries, in neighbouring countries is an added bonus for some.
For investors from other countries Cambodia’s higher electricity costs are offset by other benefits, including concessions on exports to the EU under the Everything But Arms (EBA) scheme, and to the USA under the Generalised System of Preferences (GSP) scheme.
Cambodia electricity is nominally rated at 230 volts 50 Hz, but what is supplied can vary greatlyJohn Le Fevre
However, Cambodia risks losing access to both over human rights concerns and a severely constricted political and social space, raising the price of goods in those markets.
About 90 per cent of Cambodian exports are covered by the two schemes and in 2018 about 34 per cent of Cambodia’s total exports worth about $4.2 billion went to the EU, with an additional 23 per cent going to the US.
Already threatened by Bangladesh where electricity costs $0.09 per kWh and a new connection take about 150 days compared to 179 days in Cambodia, electricity prices remaining uncompetitive with either Thailand or Vietnam is not good news for Cambodian manufacturers.
Electricity and EBA loss threaten economy
In the first sign that the government is at least bracing itself for hard times ahead, The Phnom Penh Post (the Post) last week published details of what it said was drawn from a 27-page economic report prepared for Prime Minister Hun Sen in June.
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The report, the Post said, forecast Cambodia’s economy growth to contract to 6.5 per cent in 2020, a 13.33 per cent fall on 2018’s 7.5 per cent growth. Economic growth for 2019 is already subdued over last year, forecast at 7.1 per cent.
According to the Post, Cambodia’s insecure supply and high cost of electricity, a weak transport and logistics system, slow economic diversification, and a narrow economic foundation were all factors that make Cambodia’s economy particularly vulnerable.
Consumers in Cambodia have been complaining of higher metered charges after daily supply cuts between March and JuneJohn Le Fevre
Yesterday (Aug 12) the Garment Manufacturers Association of Cambodia (GMAC) said that loss of the EBA will “result in large job losses across the garment, footwear, and travel goods labour force”.
Some 750,000 Khmer are directly employed in these sectors, supporting about three million family members. With high electricity prices to continue going forward the question of how these manufacturers will remain competitive remains unanswered.
At the media conference Mr Rottanak refused to provide journalists with his telephone number for fact checking purposes claiming it would be “inappropriate”. He didn’t read emails, he said.
The media — and anyone else needing information about EdC — should contact the telephone hotline, which he said was a citable source the media could use, or visit the website (which is only in Khmer language). Questions emailed to EdC via the address on its website were not responded to.
The EU will make its announcement on Cambodia’s continued access to the EBA in December, with the result not coming into effect for six months after that.
TENAGA Nasional Bhd (TNB) will remain a monopoly in Malaysia’s electricity business despite proposed impending changes to the market, while there is no rating impact from the company’s proposed internal reorganisation, according to Malaysian Rating Corp Bhd (MARC).
The rating agency said TNB’s reorganisation — namely, the transfer of its domestic power generation and electricity retail businesses to two new wholly owned subsidiaries — will have no material impact on its overall credit profile.
“TNB will maintain its monopoly status in electricity transmission and distribution in Peninsular Malaysia and Sabah, and have significant electricity generation capacity through its subsidiaries,” it said in a statement last Friday.
MARC expects post its reorganisation, TNB would own a significant portion of the group’s regulated assets and generate the majority of group profitability as it will maintain its single buyer status.
The rating agency continues to impute the high likelihood of government support due to TNB’s role as Malaysia’s principle energy provider and the government’s indirect majority ownership in the utility.
These factors supported a two-notch rating uplift from TNB’s standalone corporate credit rating to AAA, while the company’s RM2 billion Al-Bai’ Bithaman Ajil bonds are rated AAAIS, MARC said.
On July 29 this year, TNB announced it will transfer the assets, liabilities and business undertakings of its domestic power generation and electricity retail segments to two newly-incorporated, but wholly owned companies.
The utility incorporated two wholly owned subsidiaries — namely, TNB Power Generation Sdn Bhd (GenCo) and TNB Retail Sdn Bhd (RetailCo) — and both will operate under the purview of a separate board and management team.
National grid operations and electricity distribution will continue to operate under TNB.
The proposed internal restructuring is aimed at preparing TNB to meet upcoming reforms in Malaysia’s electricity supply industry.
As part of the Malaysia Electricity Supply Industry 2.0, the Ministry of Energy, Science, Technology, Environment and Climate Change (MESTECC) aims to reform the country’s electricity supply industry into a more competitive and robust sector.
This could entail the opening up of the electricity retail market to allow new energy suppliers to come into the domestic market.
If it materialises, a wholesale electricity market could be introduced — whereby consumers can opt to buy electricity from TNB at a regulated tariff or from the wholesale electricity market, similar to what Singapore does via its Open Electricity Market.
Note that TNB’s proposed restructuring is subject to shareholders’ approval; High Court sanction; consent from TNB’s creditors and financiers; and approval from MESTECC, the Energy Commission and the Finance Ministry.
Barring unforeseen circumstances, the restructuring is expected to be completed by the third quarter of next year.
Meanwhile, MARC affirmed its AA-IS rating on Southern Power Generation Sdn Bhd’s up to RM4 billion Sukuk Wakalah with a ‘Stable’ outlook, reflecting the power plant’s steady construction progress and no cost overrun.
Southern Power is a 51:49 joint venture between TNB and SIPP Energy Sdn Bhd to develop a 2x720MW combined cycle gas-fired power plant in Pasir Gudang, Johor.
The project achieved actual construction progress of 82.2% by the end of March this year, ahead by 1% of scheduled progress, while the commercial operation date (COD) is expected on July 1 next year.
“Upon achieving COD, the predictable operational cashflow generated by the power plant on the back of an availability-based tariff structure under a 21-year power purchase agreement with TNB is deemed adequate to meet sukuk obligations,” it said.
The overall project cost remains unchanged at RM4.58 billion, which is funded by a debt-to-equity mix of 80:20.
MARC also has a ‘Stable’ outlook for other TNB-related entities under its coverage — namely, the respective sukuk issuances of Kapar Energy Ventures Sdn Bhd, TNB Western Energy Bhd, TNB Northern Energy Bhd and Jimah East Power Sdn Bhd.
