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RHB provides platform for dialogue on water and energy reform

4 July 2019

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Malaysia

KUALA LUMPUR: RHB Banking Group today hosted an investor conference on water and energy sectors in Malaysia, with more than 100 local institutional investors participating.

The conference highlighted the government’s efforts to reform the water and energy industries, ensure the long-term sustainable supply of clean water and explore a more efficient model for electricity generation and consumption, including the propagation of greater usage of renewable energy.

The one-day conference was attended by Water, Land and Natural Resources Minister Dr Xavier Jayakumar Arulanandam, and Energy, Science, Technology, Environment and Climate Change Minister Yeo Bee Yin.

Also present were Suruhanjaya Perkhidmatan Air Negara chairman Charles Santiago and Energy Commission chairman Datuk Ir Ahmad Fauzi Hasan.

RHB group managing director Datuk Khairussaleh Ramli said as the United Nation’s 2030 Agenda for Sustainable Development becomes closer, it is relevant for Malaysia to look for game changers to transform the country’s energy landscape.

“Investments into renewable energy technology is expected to be a long-term solution to the rapidly rising energy demand across the globe as well as locally, and thus, limiting pollution as well as emission levels,” he said in his welcome speech.

Dr Xavier believes that Malaysia has significant upside potential for more robust growth in sectors related to water, land and natural resources.

“Thus policymakers and industries must work hand in hand in transforming and leveraging on this strategic sectors so that it can roll out its full potential to create and capture more value.

“This effort must be pursued through relevant and sound knowledge with good practices to ensure a balance between economic prosperity, social well-being and environmental protection towards sustainable development,” he said.

Yeo said the conference highlighted the ministry’s extensive initiatives in energy reform especially renewable energy, research and development, start-up funding and climate change.

She lauded RHB’s efforts in providing investors and government a platform for discourse and to drive vibrant investment opportunities in the energy sector.

Energy Efficiency

Proposed Energy Efficiency and Conservation Act approved by cabinet

4 July 2019

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Malaysia

KUALA LUMPUR (July 4): The draft of the Energy Efficiency and Conservation Act (EECA) has been presented and approved by the Cabinet about a month ago, according to Energy, Science, Technology, Environment and Climate Change Minister Yeo Bee Yin.

“The EECA still has to be presented to parliament and the ministry hopes that it will be tabled by the end of this year or next year,” Yeo told the media after the launch of the Greening Malaysia book here today at the Kuala Lumpur Convention Centre.

The book was launched by Pertubuhan Akitek Malaysia (PAM) to celebrate Malaysia Green Building Index’s (GBI) 10th anniversary. The launch was also held in conjunction with the currently ongoing Kuala Lumpur Architecture Festival (KLAF) 2019.

GBI is Malaysia’s green building rating tool developed by the Association of Consulting Engineers Malaysia (ACEM) and PAM in 2009. In these 10 years, some 500 buildings have been GBI-certified and nearly the same amount are currently undergoing construction.

“These 500 GBI-certified buildings had managed to reduce 1.1 million tonnes of carbon dioxide (CO2) which is equivalent to removing 243,000 cars from the roads or [having] a forest 22 times that of the land size of Kuala Lumpur,” said Yeo in her keynote address during the book launch.

“More than 50% of electricity usage is consumed in a building. By redesigning and retrofitting existing buildings, this will reduce CO2 emissions and energy usage further, thus saving money on electricity bills,” added Yeo.

Also present during the launch were PAM president Lilian Tay, PAM past president (2009-2011) Boon Chee Wee and ACEM president Datuk Mohd Adnan Mohd Nor.

The book, Greening Malaysia aims to create awareness on environmental issues among developers, architects and engineers, planners, designers, contractors and the public. It is edited by Mitchell Gelber, architects Boon Chee Wee and Serina Hijjas with photography by Lin Ho.

Greening Malaysia comprises three sections. The first section, “Green 500” features building performance data from 500 GBI-certified projects in Malaysia. It highlights the total accumulated energy, water and waste savings from all the projects to date.

The second section, “Green 15” contains case studies of 15 buildings with a wide range of building types, constituents and green building design solutions.

The third section, “Green Shifts” is an anthology of works by individual architects, engineers, designers, community organisers, academics and planners.

Following the launch, Yeo was also taken on a tour of PAM’s ‘Tomorrowland’ pavilion at the International Architecture, Interior Design and Building Exhibition (ARCHIDEX) at Hall 8 of the Kuala Lumpur Convention Centre.

When quizzed by reporters on her thoughts after touring the pavilion, Yeo said she was impressed with the projects and innovation showcased by some local architects.

Yeo (left) and Tay viewing PAM’s ‘Tomorrowland’ pavilion.

Others

Jakarta residents sue Indonesia government over air pollution

4 July 2019

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Indonesia

Residents of Indonesia’s capital on Thursday filed a lawsuit against the government over the toxic levels of air pollution that regularly blanket the city.

Jakarta has been shrouded in hazardous smog for much of the past month, with air quality readings recording high concentrations of harmful microscopic particles known as PM2.5.

Fed up with what they say is worsening air pollution, a group of 31 concerned residents has sued President Joko Widodo, as well as the ministry of environment and forestry, ministry of health, and Jakarta’s governor.

The plaintiffs—which include activists, office workers and motorcycle taxi drivers—want to raise awareness about the issue and force the government to act.

“(The government) has neglected people’s rights to breathe healthy air,” lawyer Nelson Nikodemus Simamora told reporters after filing the lawsuit.

“They have not maintained air quality at a level that is healthy enough for the 10 million people living here.”

Toxic smog saw Jakarta ranked as the most polluted city in the world for several mornings running last month, forcing residents to wear pollution masks and sparking a storm of social media criticism.

Air Visual, an independent online air quality index (AQI) monitor, pegged Jakarta at the “very unhealthy” level of 231 on June 25, higher than notoriously polluted cities like India’s capital New Delhi and Beijing in China.

Environment groups blame the air pollution on a cocktail of vehicle fumes, smoke and emissions from coal-fired power plants that ring greater Jakarta.

Greenpeace Indonesia last week recommended people don masks to protect themselves from respiratory illness.

“The number of unhealthy days for 2018 is twice as high as the figure for 2017,” Bondan Andriyanu, climate and energy campaigner for the group, told AFP.

“The government should recognise the issue, they are still using outdated regulation from the ’90s.”

Public discontent has been growing, especially online where social media users have been posting pictures of the city blanketed in a grey haze.

“As a mother of two I’m worried about the air pollution issue,” 35-year-old office worker Dita Nadine told AFP.

“The government should address the cause of the problem… how long will we let this problem continue?”

The environment ministry did not immediately respond to AFP’s requests for comment on the lawsuit, but the head of Jakarta’s environment agency, Andono Warih, played down the problem.

On Monday, he denied that Jakarta had the world’s worst air pollution, the Jakarta Post reported, citing lower government figures established using a different methodology.

Others

UP Diliman testing ground for 10 e-tricycles

4 July 2019

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Philippines

MANILA, Philippines — E-tricycles will soon be joining “Ikot/Toki” jeepneys on the University of the Philippines (UP) Diliman campus in Quezon City.

The Department of Science and Technology (DOST) announced on Wednesday that 10 of the six-seater vehicle would undergo a yearlong test run on the sprawling campus to find out how these could be used optimally.

A total of 20 units were recently turned over by the Department of Energy (DOE) to the DOST’s Philippine Council for Industry, Energy and Emerging Technology Research and Development (PCIEERD) as part of a joint project for cleaner and greener transport options.

Engr. Arnel Garcia, DOE’s supervising science research specialist, said these were among the 300 units procured through the Asian Development Bank in May.

With a cost of P455,000 each, the e-trikes can run for 40 kilometers on a single full charge.

The test run is part of an ongoing study to determine its optimum use, according to Enrico Paringit, PCIEERD executive director.

Some tests will determine how far the e-trikes can go on one charging cycle; the routes that will pass through charging stations; and the terrain on which these can be driven, said Engr. Billy Joel Esquivel of UP’s National Center for Transportation Studies.

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“We need to come up with observations on the e-trikes’ performance before the actual rollouts can be made,” he added.

Their commercial usage, however, will be determined later. For now, the e-trikes will be used mostly by engineering faculty to commute between buildings, Esquivel said.

Electricity/Power Grid ,
Energy Cooperation

DOE-Japanese METI to study Mindoro Power Grid

4 July 2019

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Philippines

TAGUIG CITY, July 4 — The Department of Energy (DOE) and the Ministry of Economy, Trade and Industry (METI) of Japan are looking to review Mindoro’s Power Development Master Plan as a continuation of the power sector Technical Cooperation Agreement (TCA) signed in June 2018.

Mindoro is the seventh largest island in the Philippines with a total land area of 10,571 square kilometers and a population of about two million people. Many communities remain without access power, while those with electricity suffer from unreliable services.

DOE Secretary Alfonso G. Cusi said, “Providing stable and reliable power in off-grid areas remains a considerable challenge to our goal of total electrification. Mindoro is one of those island provinces that has been plagued with power problems for decades. With the help of METI, we will be able to undertake a comprehensive study of the Mindoro grid, and assess the feasibility of introducing a micro-grid system as a source of stable power. If everything goes well, Mindoro would serve as an electrification model for the rest of the off-grid islands in the Philippines.”

Under the proposal, the DOE has requested METI together with Japanese firm, KPMG AZSA LLC, to provide technical assistance for the formulation of a comprehensive and integrated Power System Development and Operational PIan for Mindoro and help build capacity towards the total electrification of all households in the island, especially the poor villages and communities in the peripheries of the remote uplands and coastal areas through the introduction of the micro-grid system.

A micro-grid is a small-scale power system able to provide stable power supply to off-grid areas by combining distributed power sources such as diesel generators, solar power, wind power, and storage batteries.

During the 2018 TCA, METI, through KPMG AZSA LLC and NEWJEC, Inc. held seminars and trainings on power operation and maintenance, and sent their specialists to gather information on the DOE’s initiatives on conducting performance audits of power generation and distribution system facilities. This will serve as take off point for the next phase of the TCA.

Both parties are optimistic that the extension agreement will be signed within the year. (DOE)

Energy Efficiency

An efficient, sustainable future in energy

4 July 2019

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Malaysia

THERE was a spike in energy consumption in the last few months across the country, due to some of the highest temperatures ever experienced in the country.

This often means higher energy and electricity consumption, which is relevant in today’s growing concern for sustainability, whether to choose cleaner energy sources, rising fuel prices and the consequences of our continued dependence on fossil fuels.

While many favour cleaner, more sustainable options, the cost – such as converting to solar as a renewable energy – is expensive.

So what recourse is available? How do we solve this dilemma of choosing sustainability over affordability and quality? Is there a way to fulfil both objectives? More importantly, who should make the choice: the people, the government, the regulator?

A simple, inexpensive way of meeting the objectives of affordability and sustainability is through energy efficiency.

Defining energy efficiency

This involves adopting end-user technologies and processes that provide equal or better services with fewer units consumed; that is, at lower energy costs.

Energy efficiency is measured as a ratio of energy supply input to useful service output and is often expressed in percentages.

It is, however, not energy conservation, which is reducing energy use by going without a service.

An example of this is replacing an incandescent bulb with a light emitting diode (LED) bulb that uses less energy to provide the same amount of light. Compare that to turning off the light bulb, which is energy conservation.

Energy efficiency presents one of the cleanest, cheapest ways of managing energy demand, costs and environmental pollution.

TNB’s leading role

Many publications have shared energy efficiency tips and as one of Malaysia’s foremost companies, Tenaga Nasional Berhad (TNB) is no exception.

As a responsible energy company that has to address the national issue of sustainability, it also manages energy efficiently within its own operations.

Amid rising temperatures, increasing fuel prices and the scarcity of fossil resources, now is the right time for TNB to address this matter.

Energy efficiency is also recognised as the most cost effective means to address related issues, which include energy security, sustainability, social and economic development, and climate change.

It helps reduce greenhouse gas emissions and gets involved in managing climate change.

Pursuing energy efficiency is in line with what the Minister of Energy, Science, Technology, Environment and Climate Change Yeo Bee Yin has highlighted with the Energy Efficiency and Conservation Act (EECA), a regulatory framework set to renew the National Energy Efficiency Action Plan by achieving 8% energy efficiency by 2020. Powering change in TNB

During the first phase, TNB retrofitted six buildings to be more energy efficient by installing an energy monitoring system, EE lighting, solar PVs, a power factor improvement and a variable speed drive study for motors.

These buildings include TNB offices along Jalan Timur and Jalan Kepong in Petaling Jaya, Jalan Anson in Penang, as well as in Johor Baru, Kuantan and Melaka.

In doing so, TNB achieved an energy savings of 1571MWh per year, about RM574 thousand in savings a year.

Creating awareness

TNB has recently launched a six-month campaign from April to September to the theme of “Kuasa Di Tangan Anda” (Know Your Power), which currently runs across all platforms including out-of-home advertising, digital displays, social media, on TVs and radio.

TNB’s intention was to help translate the truth on energy consumption in the simplest way possible to help Malaysians realise that the power for change is in their hands.

By demonstrating the small steps that everyone can make, we can change the way we think and do things, all of which starts from home.

TNB also encourages children to spread the work of energy efficiency as social marketing has shown that this segment is influential in changing adults mindsets.

Read more at https://www.thestar.com.my/news/nation/2019/07/04/an-efficient-sustainable-future-in-energy/#DVfdobjs8flZZsGf.99

Electricity/Power Grid ,
Energy Economy

Domestic consumers unaffected by higher generation cost for electricity for 2H19

3 July 2019

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Malaysia

KUALA LUMPUR: Tenaga Nasional Bhd (TNB) has announced that the implementation of Imbalance Cost Pass-Through (ICPT) mechanism will be continued for the period of 1 July until 31 December 2019.

The national utility company in an exchange filing today said for the period of 1 January until 30 June 2019, the additional generation cost or imbalance cost is RM1,592 million due to higher fuel and generation cost.

The continuation of the mechanism was approved by the government and via a letter from Suruhanjaya Tenaga (ST) dated 28 June 2019.

The filing noted that the continuation of ICPT was due to increase in average coal price to USD99.235/metric tonne, as compared to the forecasted coal price set in the base tariff for Regulatory Period 2 (RP2) from 2018 to 2020, which is at USD75/metric tonne.

Higher electricity demand has also resulted in the increase in the fuel and generation cost for this period, TNB filing said.

Further, TNB said to cushion the impact of the additional fuel and generation cost of RM1,592 million for this period, the government has approved several measures including the use of Kumpulan Wang Industri Elektrik (KWIE) amounting to RM107 million and revenue adjustment of TNB in accordance with the Incentive Based Regulation mechanism amounting to RM336.7 million, which was agreed during the base tariff determination in RP2 under the Incentive Based Regulation framework.

Therefore, the remaining imbalance cost to be passed-through via the ICPT mechanism is RM1,148 million.

The ICPT implementation for period of 1 July 2019 until 31 December 2019 for full recovery of the remaining imbalance cost of RM1,148 million are via the average base tariff remain unchanged at 39.45 sen/kWh.

TNB also noted that residential customers will not affected by the ICPT surcharge and no ICPT surcharge will be applied to all domestic customers.

Current ICPT surcharge of 2.55 sen/kWh will continue to be maintained for period of 1 July 2019 until 31 December 2019 for all non-domestic customers, it said.

The ICPT mechanism continuation also reflected the cabinet’s decision on 3 May 2017 allowing the adjustment of the regulated piped-gas price for the power sector with an automatic increase of RM1.50/mmbtu every six (6) months until reaching reference market price for a period of three (3) years, starting from 2018 until 2020.

The ICPT is a mechanism approved by the government and implemented by ST since 1 January 2014 as part of a wider regulatory reform called the Incentive Based Regulation.

ICPT mechanism allows TNB to reflect changes in fuel and generation costs in consumer’s electricity tariff every six (6) months.

TNB also said that the impact of ICPT implementation is neutral on TNB and will not have any effect to its business operations and financial position.

Renewables

DOE mulls extension of FIT allocation for hydro

3 July 2019

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Philippines

MANILA, Philippines — The Department of Energy (DOE) is looking to extend anew the deadline for the feed-in-tariff (FIT) allocation for run-of-river hydro due to slow take up for the technology.

The agency is currently working on the extension of the FIT for run-of-river hydro as it aims to improve the country’s energy equity and security, DOE Secretary Alfonso Cusi said.

“The Philippines is number one in environmental sustainability, but we are very poor in equity and security. That’s what we are working on,” he said.

FIT for hydropower and biomass developers were extended until Dec. 31 from the original deadline on Dec. 31, 2017.

Unlike solar and wind, the FIT allocation for biomass and run-of-river technologies remain undersubscribed three years after the program’s implementation.

As of end-2016, 28.6976 megawatts (MW) were taken up by existing run-of-river hydro projects, while 144.80 MW were consumed by completed biomass plants, DOE-Renewable Energy Management Bureau (REMB) data showed.

Originally, run-of-river hydro was approved a rate of P5.90 per kilowatt-hour (kwh) and biomass with a rate of P6.63 per kwh. Each technology was allotted an installation target of 250 MW each.

The FIT rates have already been lowered to P5.8705 per kwh for run-of-river hydro and to P6.5969 per kwh for biomass effective 2018.

But despite the extended FIT deadline, Cusi said only biomass has reached its quota, while run-of-river hydro has not yet reached its full allocation.

“It’s still low, less than a hundred MW,” he said. “That’s why I’m going to extend it to fill up until it is fully taken up.”

Moreover, hydropower developers are requesting for another extension of the FIT for the technology which are now being evaluated by the agency, DOE-REMB director Mylene Capongcol said.

Previously, the Philhydro Association Inc., composed of hydropower developers, manufacturers, construction companies and consultants, asked the DOE to clarify the FIT for run-of-river hydropower since its installation target “has not been fully subscribed due to factors beyond the developers’ control.”

The top hurdle for run-of-river developments is securing clearance from the National Commission on Indigenous Peoples because of the long process to get their consent for water permit.

Power developers have also stressed that run-of-river hydro projects are long gestation developments that will cover the period to secure permits and undertake studies, and therefore need more time for completion to avail of FIT incentives.

A provision under the Renewable Energy Act of 2008, the FIT system details perks for power developers for a period of 20 years to invest in the more expensive renewable sector.

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