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  • Electricity/Power Grid
10 August 2019

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  • Philippines

Amidst being drenched for days due to the heavy downpour of rainfall, Filipino consumers have fewer things to worry about because of lower prices of basic commodities and cooling inflation.

Based on the Inflation and Consumer Price Index Report by the Philippine Statistics Authority, the country’s headline inflation eased to 2.4 percent in July 2019 from 2.7 percent last month. Notably, this is the lowest inflation rate recorded since January 2017. The downtrend was brought about by the decrease in prices of basic commodities, food and non-alcoholic beverages in particular. In comparison, inflation of July 2018 reached 5.7 percent due to rising oil and rice prices.

Other factors contributing to the inflation slowdown are lower prices for housing, electricity, gas and other fuels and transport.

In July, there was a power price cut due to lower charges of Independent Power Producers and stable charges of Power Supply Agreements. This translated to a decrease in the July bill of about P21 for a typical residential customer using 200 kilowatt per hour.

For the month of August, Meralco announced its fourth consecutive power rate cut for the year. The decrease of P0.4176 kWh was brought about by lower Wholesale Electricity Spot Market charges leading to an overall decrease in generation charges, which accounts for almost half of the electric bill. For consumers, this means a decrease of around P84 in total bill of a typical household consuming 200 kWh. Households consuming 300 kWh, 400 kWh and 500 kWh, can expect a reduction of P125.28, P167.04 and P208.80 in their monthly bill, respectively.

Consumers cannot afford to be complacent 

While consumer concerns have been tempered in the past months, Filipinos cannot afford to be complacent as they continue to be haunted by the detrimental effects of the ill-timed implementation of the TRAIN law coupled by spiking inflation rates in 2018.

Policies are being pushed in an effort to reduce prices of basic goods in the form of delivery of stable, efficient and affordable electricity. At the same time, this policy direction is geared towards the development of renewable energy sources, in keeping with the directive of the President Rodrigo Duterte to address “the need to ensure the sustainability and availability of resources and the development of alternative sources”.

Going further through grid modernization 

One of the consumer-centric policies that is currently being drafted is the development of the smart grid technology.

In a study by the ASEAN Center for Energy, a smart grid has been defined as an “electricity network that uses digital and other advanced technologies to monitor and manage the transport of electricity from all generation sources to meet the varying electricity demands of end-users”.

The smart grid coordinates the needs and capabilities of all generators, grid operators, electricity market stakeholders and end-users to operate all parts of the system as efficiently as possible while also minimizing costs and environmental impacts and maximizing system reliability, resilience and stability, thereby preventing power outages and reducing energy losses. This new technology likewise promotes the integration of renewable energy sources such as storage and battery systems, solar and wind energy.

More importantly, the smart grid gives the consumers more control over their electricity bills through real-time monitoring and access of information.

In Southeast Asia, countries leading the smart grid technologies are Singapore and Malaysia. Following these regional innovators, the Philippines is taking a step in the right direction, together with Vietnam and Indonesia.

Based on the 5th ASEAN Energy Outlook, the establishment and development of smart grid technology can help the ASEAN Member States achieve reliable and cost-effective power supply while attaining the regional renewable energy target of 23% share in the total primary energy supply by 2025.

As of date, the Department of Energy is finalizing the Draft Department Circular on smart grid technology entitled “Providing a National Smart Grid Policy Framework for the Philippine Electric Power Industry and Roadmap for Distribution Utilities”, which is set to be released by the third quarter of this year.

Accelerating the smooth transition from our old Philippine power system into a smart grid by 2040 would require the immediate and timely roll-out of said plans. Powering the Philippines requires the expansion and acceptance of new technologies. The evolution towards smart grid should be welcomed as a long-term and consumer-centric solution.

Read more at https://www.philstar.com/other-sections/news-feature/2019/08/10/1942230/commentary-empowering-consumers-save-energy#IbwAbjiL6ITfwhiR.99

  • Electricity/Power Grid
10 August 2019

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  • Cambodia

The head of Electricite Du Cambodge (EdC) said yesterday (Aug 8) that the utility is in “a race against time and a race against nature” to get two new generators installed and commissioned ahead of the next dry season if power cuts similar to earlier this year are to be avoided.

EdC director-general Keo Rottanak said that contracts for the two 200 megawatts (MW) power plants ordered last month have a completion period of between 10 and 12 months, “but with construction commencing in the wet season it slows things down”, adding that June or July are more realistic.

The two power plants, one from Germany’s Man Group and the other from Finnish firm Wartsila are expected to provide a buffer against Cambodia’s rapidly growing demand for electricity, which between March and June this year experienced a shortfall in generating capacity of some 400 MW.

  • Others
10 August 2019

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  • Myanmar

YANGON — Once a seat of kings, the city of Mandalay in northern Myanmar has seen turbulent chapters in its 162-year history — the fall of Burma’s last royal dynasty and decades of colonial rule. Now, officials are attempting to transform the former royal capital into Myanmar’s first “smart city”.

In a country where officials still largely labour with pen and ink, surrounded by stacks of mouldering papers, authorities in Mandalay are tapping social media and new technologies such as artificial intelligence software and drones to revamp a lethargic bureaucracy.

Under the secretive military junta that ruled Myanmar until 2011, people in the country’s second-largest city rarely had any contact with those who governed them. Now, they talk to the mayor on Facebook and pay for services with QR codes, something not available in Myanmar’s commercial capital, Yangon.

Authorities track garbage disposal with GPS and control traffic flows with remote sensors.

“It is very good that we can communicate with the mayor like this,” said 55-year-old taxi driver Kyi Thein. “Before, we could only see their motorcades.”

Formerly dominated by military-linked men and regarded as a hotbed of graft and mismanagement, the city’s first municipal government with an overwhelmingly civilian background has driven the plan, which is part of a regional initiative.

The pace of change has won plaudits in regional media and from overseas Myanmar nationals — the mayor was given the Citizen of Burma award by a US diaspora organisation in May — underscoring opportunities for Myanmar as the country emerges from half a century of isolation into a world dominated by rapidly evolving technology.

But some of the attempts to push through change have met with resistance, not only from corners of the creaky bureaucracy, but from activists concerned that smart technology, deployed without regulating legislation, could allow authorities to more closely surveil them.

“LIVEABLE CITY”

In April 2018, Singapore, then the chair of the Association of South-east Asian Nations, proposed the creation of a network of 26 “smart cities” that would harness technology to tackle some of the challenges created as the region’s once mostly rural population converges in cities.

Three Myanmar cities were chosen, but it is in Mandalay, in the centre of the country, where authorities have done most to embrace the proposal.

Locals there say issues are myriad. The tap water is not drinkable. Congestion is increasing as the number of vehicles has skyrocketed since the liberalisation of imports in 2012. The roads are potholed and pavements littered with trash.

Many credit mayor Ye Lwin, a former eye surgeon turned politician and the first appointed to the post by a civilian government after elections in 2015, with overseeing a turnaround over the past two years. He responds to gripes on his Facebook page daily, tagging subordinates and issuing directives.

He declined an interview request by Reuters, referring questions to officials in his office.

“Our goal is to create a city which doesn’t damage the environment, is liveable for people, with a good economy and friendly environment,” said Mr Ye Myat Thu, an IT expert who created Myanmar’s most popular Burmese-language font and now works alongside the mayor in the Mandalay City Development Committee. “We get there using technology.”

Although the Asian Development Bank gave money for an upgrade to the waste management system, most of the reforms have been funded by taxation, Mr Ye Myat Thu said.

Authorities undertook a digital survey of the city, using 3D images shot by drones and data obtained by municipal officers roaming the city with GPS devices that they say has given them a better picture of the households and businesses that should be paying property tax.

The funds have paid for an Australian-made traffic control system and devices for staff to read electricity bills automatically by walking past houses rather than checking the meters.

Inside a new control centre attached to the city’s municipal office on a recent morning, two traffic officers monitored the most congested roads on 13 screens. Sensors installed in CCTV cameras detect congestion and adjust the sequencing of traffic lights accordingly, explained Mr Ye Myat Thu.

FACIAL RECOGNITION

But change has not come easy. “Only after I joined here, I realised how bureaucratic the system was,” said Mr Ye Myat Thu.

For example, government departments across the country still eschew email for a paper-based letter system, he said, and Mandalay is no exception.

When authorities installed tracking on garbage trucks to make sure they were collecting the litter, drivers poured water on the devices in an effort to destroy them, Mr Ye Myat Thu and another official said.

Recent weeks have brought a backlash against a proposed deal between Mandalay’s regional government and Chinese tech giant Huawei to provide CCTV cameras equipped with facial recognition technology and other security equipment as part of a “safe city” project worth US$1.24 million, according to local media.

The United States has told its allies not to use Huawei’s technology because of fears it could be a vehicle for Chinese spying, an accusation the company has denied.

“Huawei supports privacy protection,” Mr Bob Zhu, a spokesman for Huawei Myanmar, told Reuters in an email, adding that the deal in Mandalay had not yet been formally signed.

Mr Nyi Kyaw, an activist from the Mandalay-based non-profit Metta, said authorities already kept a close eye on their activities and facial recognition could enable abuses.

“There is no trust between civil society organisations and the government. If this happens with the excuse of security, activists and political activists will be watched, rather than the criminals.”

Mr Ye Myat Thu from MCDC said the country should have better “legal infrastructure” around personal data before the project could be implemented.

“We face many challenges,” Mr Ye Myat Thu said, “We have been trying to change a system that has been going its own way.” REUTERS
Read more at https://www.todayonline.com/world/royal-capital-smart-city-myanmars-mandalay-gets-high-tech-makeover-sparks-spy-fears-0

  • Renewables
9 August 2019

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  • Cambodia

About 15 percent of all energy produced in the Kingdom will come from solar panels by 2020, the government said yesterday.

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

Speaking during a press conference at the Council of Ministers, Keo Ratanak, director-general of Electricite du Cambodge (EDC), said Cambodia will be producing at least 390 megawatts from solar farms by next year.

A host of solar energy projects has been approved since earlier this year the country was hit by power shortages. Some of these recently approved projects will come online during 2019 and 2020.

“This figure of 15 percent includes solar projects in Bavet, Kampong Speu, Kampong Chhnang, Batambang, and Siem Reap provinces,” Mr Ratanak noted. “Together, they will supply about 15 percent of the energy in the national grid by next year. It is a huge amount.”

Mr Ratanak said the government is now focusing on solar power because it is cheap to produce in Cambodia and has minimal impact on the environment.

“We are prioritising solar power because it is good for the environment. We want to integrate green energies into the country’s economic development strategy,” Mr Ratanak said.

“The aim is also to diversify. Relying on just one energy source is problematic.”

About 50 percent of all power produced in Cambodia comes from hydropower dams while 30 percent is produced from coal-fired facilities. The rest either comes from fossil-fuel-fired power plants or is imported, Mr Ratanak said.

“By 2020, Cambodia could be a leader in the region in terms of clean energy. This is our way of fulfilling our commitment to the Paris Agreement, which Cambodia is a part of,” Mr Ratanak said.

He said that energy demand during the first half of the year rose by 50 percent compared to last year’s H1. The rise is the result of an increase in construction projects and investment, he said.

Last year, Cambodia consumed 2,650 MW, a 15 percent increase compared to a year earlier.

The power shortage that the country faced this year has been attributed to a lack of rain. According to the government, rainfall was insufficient to keep the turbines of hydropower dams, Cambodia’s main power source, working.

The country now generates 80 MW from solar farms. There are two solar facilities online – in Svay Rieng’s Bavet and in Kampong Speu’s Oudong district.

Victor Jona, director-general of the department of mines, noted yesterday that the cost of producing solar energy in Cambodia is much lower than in many other countries. He said solar energy is now sold to the national grid at just $0.076 per kilowatt-hour.

  • Oil & Gas
9 August 2019

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  • Philippines

THE LNG (liquefied natural gas) project of First Gen Corp. has been declared as an “Energy Project of National Significance” (EPNS) in accordance with Executive Order 30 (EO 30).

FGEN LNG Corp. (FGEN LNG), a wholly owned subsidiary of First Gen Corp., said Thursday that its application for EPNS declaration filed in June has been approved by the Energy Investment Coordinating Council (EICC) through the Department of Energy (DOE).

EPNS are significant energy projects for power generation, transmission and/or ancillary services including those required to maintain grid stability and security, and which are in consonance with the policy thrusts and specific goals of the DOE’s Philippine Energy Plan (PEP).

FGEN LNG’s application for declaration was submitted on the basis that its LNG project will require the development of significant infrastructure and capital investment involving complex technical processes and engineering designs that will result in a substantial positive impact on the environment.

The LNG hub will be built in the First Gen Clean Energy Complex (FGCEC) in Barangays Santa Clara, Santa Rita Aplaya and Bolbok, Batangas City, under the management and ownership of FGEN LNG.

FGEN LNG has completed significant predevelopment work to make the project site “construction-ready.” It broke ground on its LNG hub, estimated to cost from $700 million to $1 billion, in May.

The project will be developed in two phases. The first includes new unloading facilities for LNG carriers with capacities ranging from 40,000 to 177,000 cubic meters; a 200,000-cubic-meter LNG storage tank with a maximum sendout capacity of up to 5 metric tons per annum (MTPA); two LNG truck loading bays; as well as provisions for a future LNG carrier loading system for vessel capacities ranging from 5,000 to 40,000 cubic meters.

The second phase includes an additional 200,000-cubic-meter LNG storage tank, increasing its sendout capacity up to 7 MTPA; two additional LNG truck loading bays and an LNG carrier reloading system.

The company targets to finish the LNG terminal before gas from the Malampaya facility runs out in 2024.

First Gen already operates four gas-fed power plants with an aggregate capacity of about 2,000 MW. These are the 1,000-MW Santa Rita, 500-MW San Lorenzo, 414-MW San Gabriel and 97-MW Avion.

The company said its LNG project will play a critical role in ensuring the energy security of the Philippines and the Luzon grid, particularly when the indigenous Malampaya gas resource no longer produces sufficient fuel for the country’s existing gas-fired power plants, and certainly not for additional gas-fired power plants.

“We would like to sincerely thank the Department of Energy for approving our application for the FGEN Batangas LNG Terminal Project as an Energy Project of National Significance.

“We believe that this project is crucial to ensure the continued operations of the 3.2-GW existing natural gas-fired plants given the expected reduction in gas supply from the Malampaya field up to the expiration of the contracts by 2024,” said Jonathan Russell, executive vice president and chief commercial officer of First Gen.

He added: “First Gen will continue to work hard to ensure that this project will also be available to allow the development of new gas-fired capacity, with a lower carbon footprint that will support introduction of more intermittent renewables for the Philippines.”

First Gen has partnered with Tokyo Gas Co. Ltd.  for the LNG project. Both signed a joint development agreement (JDA) in December last year.

The JDA is a preliminary agreement between the parties to jointly pursue development of FGEN LNG project with Tokyo Gas taking a 20-percent participating interest.

It said the project is also consistent with both the DOE’s Nine Point Energy Agenda and PEP 2017-2040 as it promotes liquefied natural gas importation as an option to supplement and replace Malampaya gas.

FGEN LNG also received in March the formal approval of its application for a Notice to Proceed from the DOE, as defined in and required by the Philippine Downstream Natural Gas Regulation.

  • Renewables
9 August 2019

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  • Thailand
The Department of Alternative Energy Development and Efficiency has drawn up Bt10 billion budget plan to support its projects during 2020-2024.

The department deputy director-general Yongyuth Sawatdisawanee said the projects will include preparing a revolving fund to promote energy conservation, actions to support the use of energy-saving machinery, the promotion of solar rooftops, and demonstration projects targeted to farmers showing how to use less energy.

The department will this month hold a fifth and final hearing into its draft plan for developing alternative energy from 2018-2037.

The plan aims to raise the ratio of electricity generated by alternative energy sources to 30 per cent of total produced energy, representing 29,358 contracted megawatts, within 2037.

The contribution from solar energy will be increased to 15,574 megawatts in that year.

  • Electricity/Power Grid
9 August 2019

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  • Cambodia

The Electricity Authority of Cambodia and Electricité du Cambodge yesterday held a press conference to fend off criticism from the public regarding electricity shortages and billing irregularities.

During the press conference, which was organised by the Government Spokespersons Unit, EDC director-general Keo Ratanak said the EDC received many complaints from customers between January and July, including 237 posted on Facebook.

“This year, there has been a storm of protests regarding electricity issues, including insults on Facebook that accused us of ‘sucking people’s blood,’” Mr Ratanak said. “But I want to inform you that we have reduced the price of electricity from 4,000 riels per kilowatt to 380 riels, 480 riels and 610 riels because we are paying attention to people’s livelihoods.”

Mr Ratanak was referring to different rates being applied based on the amount of electricity consumed by a household.

He noted that any EDC official found to have cheated customers will be sacked and be held accountable in accordance with the law.

A man checks his power usage on his meter at his home in the capital. KT/Chor Sokunthea

Mr Ratanak added that in order to avoid misunderstandings, the government will replace English with Khmer on monthly electricity bills.

“We wish to ensure that there have been no changes to the [rates],” Mr Ratanak said. “We will check for you – free of charge – if you have any suspicions.”

He noted that in order to file a complaint, residents should use the EDC’s hotline or send a direct message to the EDC’s official Facebook page instead of posting on social media.

The Kingdom faced an electricity shortage earlier this year that led to rolling blackouts to conserve power.

The government said at the time that the blackouts were necessary because a lack of rain had affected the output of the country’s hydropower dams.

Mr Ratanak also addressed critics of hydropower dams during the press conference.

“When we have a power project, we always get backlash from opposition protesters – they are against any hydropower dams,” Mr Ratanak said. “In Vietnam, their government can build a lot of hydropower dams.”

He said the government has a policy to reduce the import of electricity in order to make Cambodia self-reliant.

Mr Ratanak noted that currently, Cambodia imports 10 percent of its electricity supply from Vietnam, six from Thailand and two from Laos.

“In 2008 and 2010, 70 to 80 percent of our supply depended on Vietnam and Thailand,” he said. “Now we import less from them.”

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

When asked why the price of electricity in the Kingdom is more expensive when compared to neighbouring countries, Mr Ratanak said countries like Thailand and Vietnam began developing their energy sector earlier than Cambodia.

“We don’t believe that our electricity price is higher than Singapore, the Philippines and other countries in Asean, but the truth is that our prices are higher than Vietnam and Thailand,” he said. “Vietnam and Thailand are capable of producing more than 40,000 megawatts while our country only can produce 2,000. So, we can’t compare to them.”

“Like Vietnam, they have many hydropower dams and coal and gas-powered [facilities],” he said. “They also export gas, and what do we have?”

“Vietnam ended their war a long time ago and they had ample time to develop its electricity sector,” Mr Ratanak added. “We just ended the civil war in 1998.”

EAC chairman Yim Viseth said the government has so far installed meters in 34 percent of homes being rented by garment workers across Phnom Penh. Mr Viseth noted that landlords must avoid charging the workers extra.

“In principle, the government wants our workers, who rent rooms, to pay less for electricity,” he said. “Currently, we have installed electricity meters in over 30,000 rooms [in the capital].”

Mr Viseth noted that anyone who complains about irregularities caused by the government-installed electricity meters can install their own meters.

  • Renewables
9 August 2019

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  • Indonesia

With recent news of a power outage seeing demand for alternative power sources, as reported by VOA News,  Director of PT Geo Dipa Energi Riki Ibrahim highlighted how geothermal power plants can very easily provide backup power should gas-fired power plants fail. Considering its reliability and low carbon emission, Riki has urged PT PLN (Persero) support the development of more geothermal power plants in Indonesia.

“When a power plant has a problem, it takes some time for it to heat up before it can supply to the grid.” explained Riki. “Geothermal power plants can provide a more reliable base load, so why doesn’t PLN build more of them?” Riki Ibrahim expressed these sentiments at a recent Ministry of Finance meeting in Jakarta.

The cause of the major blackout on August 4 is already being investigated by the Ministry of Energy and Mineral Resources (ESDM). “The purpose of the investigation is not to find who is at fault, but to come up with measures to prevent the incident from happening again,” said ESDM Director General Rida Mulyana.

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