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Coal ,
Renewables

Party-list asks Meralco to abandon coal plants, shift to RE

6 June 2019

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Philippines

MURANG Kuryente Partylist (MKP) wants the Manila Electric Co. (Meralco) to abandon its coal- power plant projects and instead shift to developing renewable-energy (RE) sources.

“Renewable energy is safer, more affordable and more sustainable than coal, and it is welcome to hear Meralco say they are committing to it. But we don’t want RE to be a token PR project of the company. Meralco should abandon all its coal-fired power plant projects and completely embrace RE,” Murang Kuryente Spokeman Gerry Arances saide in a statement.

Meralco said the other day that it plans to develop 1,000 megawatts (MW) of renewable-energy projects in the next seven years.

“As the biggest distribution utility in the country, on top of its own power-generation projects, Meralco is in a position to change the energy mix of the Philippines on its own. We hope this change can be manifested in concrete solutions such as shutting down its Atimonan coal project instead of using RE just for PR purposes,” Arances said.

Meralco Powergen Corp. (MGen), the power-generation subsidiary of Meralco, is building a 1,200-MW coal-fired power plant in Atimonan, Quezon. The power project has yet to take off pending the conduct of a competitive selection process (CSP).

“In fact, their Atimonan project alone already exceeds their planned investment in RE for the next seven years. Why does RE have to wait for so long to get the same generating capacity as Meralco’s coal projects?” Arances asked.

Coal is currently the biggest provider of fuel for power plants in the Philippines, accounting for more than a third of the installed capacity in the country, with more coal-fired power plants planned for construction.

When sought for comment, Meralco said baseload power sources complement RE. “Obviously, some people can’t distinguish between baseload for 24×7 supply and intermittent power supply availability of renewables. Our argument is we need baseload plant from cheapest source, which is coal, but using ‘high efficiency, low emission’ [Hele] to be able to decommission the old and inefficient coal plants, which are on extended life,” MGen President Rogelio Singson said in a text message.

“Ray Espinosa, Meralco president, and I are advocates of renewable power, but RE cannot provide the required 24×7 reliability and competitively priced, which Meralco is committed to provide its 6.7 million customer accounts. This is the mandate of our Chairman Manuel V. Pangilinan to both Espinosa and myself for MGen to be a major player in RE power supply,” Singson said.

The utility firm is also committed to developing large-scale RE projects that can deliver competitive electricity for its customers, without any requirement for subsidy or support, while keeping environmental stewardship and sustainability as top priorities in its business.

These new RE projects will be housed under a new firm called MGen Renewable Energy Inc. (MGreen). Officials said MGreen aims to bring in additional supply to support the Philippines’s growth momentum and help ensure availability of green and cost-competitive power supply in the coming years.

“We are working on several renewable-energy prospects and we recognize the significant reduction in the development cost, particularly for large-scale solar and wind, over the past years. Notwithstanding the ongoing requirement for new reliable baseload generation to support the fast-growing Philippine economy, we believe the time is right to focus on building our green-energy capacity, and we intend to be a key player in this expanding sector,” Singson added.

Electricity/Power Grid

Asean faces key challenge: Go green or choke on air pollution, says US energy specialist

6 June 2019

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ASEAN

SINGAPORE – Increasingly foul air from rapidly growing cities and industry could force South-east Asian nations to speed up the switch to cleaner sources of energy and to meet UN climate goals, says a leading energy specialist.

Dr Ernest Moniz, energy secretary under former US President Barack Obama, said Asean is poised for rapid economic growth but that the current energy policies for most countries in the region risk committing them to highly polluting electricity generation, transport and industry.

The problem is especially acute because rapid urbanisation in the region concentrates people, energy use and pollution.

“Now is the time to make the right choices so that when the population is wealthier they will also enjoy that wealth because you’re not going to like it so much if you’re living in Los Angeles of the 1960s or the Beijing of 10 years ago,” he told The Straits Times on Thursday (June 6) on the sidelines of the Ecosperity Conference, part of Ecosperity Week.

Asean, with more than 620 million people, is one of the fast-growing regions in the world. But it is also ranked as the most vulnerable from the impacts of climate change, including severe storms, rising sea levels, droughts and floods.

Half of Asean’s population live in urban areas and by 2025 a further 70 million people will be city dwellers, the Asean Secretariat says. That places ever greater strains on transport, electricity, water and sanitation networks.

Electricity demand in the region is forecast to double by 2025 and with it greenhouse gas emissions are expected to keep growing right at the time that the UN climate panel says nations should be curbing fossil fuel pollution.

This underscores the immense challenge governments in the region face: providing enough energy to drive economic growth and raise living standards without destroying the environment.

For now, coal remains king but costs of wind and solar energy have plummeted and public awareness of the dangers of air and water pollution is growing, leading to the cancellation of some coal projects.

Asean is at a critical moment, said Dr Moniz, founder and CEO of US think-tank Energy Futures Initiative.

“What this means is the region needs to take advantage of the opportunity of quite literally building major energy infrastructure and to do it in a clean and sustainable way and enhancing the quality of life,” he said.

Otherwise, the risk is worsening pollution.

Asean’s most populous members – Indonesia, Vietnam and the Philippines – are pumping US$120 billion (S$164 billion) into coal-fired power plants that are under construction or planned, according to a recent study by London-based Carbon Tracker Initiative. Wind and solar investments are still a fraction of this.

A 2016 study co-authored by the Asean Centre for Energy predicted the external costs related to air pollution from fossil fuels could reach US$225 billion annually by 2025.

Dr Moniz said the region had plenty of natural gas resources. While still emitting carbon dioxide, the main greenhouse gas, natural gas was far less polluting than coal and, twinned with greater investment in renewable energy, was one solution for the region while it transitioned to low or zero-carbon energy sources by mid-century.

He suggested Asean nations cooperate more closely on building gas pipeline networks as well as high-voltage electricity lines across the region.

Key, too, was electrifying transport networks in cities in Asean to cut pollution and to reduce car use. This included trains and electric buses, which China has been rolling out on a large scale.

“I think it is a system approach that’s going to be needed,” he said. That meant closer cooperation of Asean nations to reach low-carbon goals and understanding that each country has different needs.

Electricity/Power Grid ,
Energy Cooperation

Laos ups electricity trade

6 June 2019

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Cambodia ,
Lao PDR

The LAO government has agreed to conduct a feasibility study on electricity trading and hydropower exchanges with neighbouring countries to boost cooperation in the energy sector.

Laos has agreed to sell 5,000MW of electricity to Vietnam, and while it is currently exporting just over 300MW it is expected to supply 1,000MW by next year, Minister of Energy and Mines Khammany Inthirath reported at the opening of the energy and mining sector’s first quarter meeting on Monday.

“Both countries are hoping to increase Lao electricity exports to Vietnam to 3,000MW by 2025 and to more than 5,000MW by 2030,” he said.

The Lao government is currently conducting negotiations on electricity trading with its Vietnamese counterpart and expects to sign an agreement soon, Khammany said.

Laos has also agreed to sell 9,000MW of electricity to Thailand, and is currently able to export only 4,260MW but will supply 7,000MW by next year and 9,000MW by 2025, he added.

The country has agreed to sign electricity trading pacts for four projects with Thailand, of which 2,357MW of installed capacity is expected to sell by the end of this year.

Laos has improved the price for electricity trading and increased electricity exports to Thailand, Khammany said.

The country has also agreed to sell 100MW to Malaysia via Thailand, and Laos is currently able to supply this amount, he added.

This project is the first model among Asean countries and studies are underway on technical cooperation with four sides to sell electricity to Singapore by next year.

Three countries – Laos, Thailand and Malaysia – have partnered to study the increase in capacity to 300MW for electricity provided to Malaysia.

Selling to Cambodia

The Lao government has agreed to sell electricity via 22kV and 115kV transmission lines to Cambodia in the border areas between Champassak province in Laos and Stung Treng province in Cambodia, with 10MW to be sold initially, Khammany said.

Laos currently supplies electricity via a 115kV transmission line and is considering increasing its capacity to sell power via 230kV and 500kV transmission lines.

The government has also signed an agreement to sell 195MW of electricity to Cambodia, to be started by next year, and is currently negotiating with the Cambodian government to sell more than 1,800MW.

The government has also agreed to sell electricity via a 22kV transmission line to Myanmar in the border areas between Bokeo and Luang Namtha provinces of Laos and Shan state in Myanmar.

Both sides are currently carrying out a feasibility study to supply energy via 230kV and 500kV transmission lines.

In addition, the government has signed an agreement to cooperate with China on hydropower, especially the development of 230kV and 500kV national transmission line systems to supply more electricity and ensure future quality. VIENTIANE TIMES/ASIA NEWS NETWORK

Renewables

Energy Ministry has high hopes for solar scheme

6 June 2019

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Thailand

The Energy Ministry expects the solar power project for household rooftops to achieve its projection of 15,000 participants by year-end thanks to the popularity of the trend globally and declining investment costs in the sector.

The number of households using solar power has increased significantly since the Energy Regulatory Commission (ERC) opened its household solar power scheme last month, with plans to buy electricity from individual producers of up to 100 megawatts this year at 1.68 baht per kilowatt-hour.

Since it started on May 24 some 1,200 households have participated in the programme.

Energy Minister Siri Jirapongphan said he expects the volume of solar household power to increase rapidly across the country. Distribution channels for electricity from solar panels are also expanding to serve growing local demand for both on-grid and off-grid power generation.

“Solar power from household sources has been gaining at impressive growth rates this year,” said Mr Siri.

“The energy source is going to shake the industry.”

Interested homeowners can seek further information from the ERC website and register to join the scheme via the websites of the Metropolitan Electricity Authority at https://spv.mea.or.th and the Provincial Electricity Authority at https://ppim.pea.co.th. The two state-run bodies are responsible for buying power from the scheme.

Under the power-purchasing agreement, the first quota of 70MW is set for the two state agencies to buy solar power from private households this year.

Solar panels from companies worldwide showcase at ASEAN Sustainable Energy Week (ASE) 2019 at Bitec, Bangkok until Saturday.SOMCHAI POOMLARD

Mr Siri said household solar power is part of the national power development plan for 2018-37, which has revised the target for solar power portfolio over the next two decades.

“The government expects the capacity of solar power will increase by 20-30% in the next 20 years to 15,000-20,000MW, up from 3,500MW at the end of this year,” he said. “Some 10,000MW will be generated by the household rooftop scheme.”

Mr Siri said the ministry has strongly supported and promoted clean energy and technology, notably wind farms, energy storage and solar power as these sectors gain in popularity globally.

Thailand is emerging as a leader in global manufacturing of electric vehicles (EVs) and batteries for EV cars, he said after presiding over the Asean Sustainable Energy Week 2019 on Wednesday.

“EV technology emphasises the potential of Thai energy in the region,” Mr Siri told participants.

Oil & Gas

NOCs in Thailand and Indonesia face challenging national production aspirations: GlobalData

6 June 2019

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Indonesia ,
Thailand

National Oil Companies (NOCs) in Thailand and Indonesia are using the expiry of existing production-sharing contracts as an opportunity to take greater control of mature oil and gas fields domestically, says GlobalData, a leading data and analytics company.

The company’s latest research reveals that PTT Exploration and Production Public Company Limited (PTTEP) in Thailand and PT Pertamina in Indonesia will operate the majority of production in their respective countries by 2023. PTTEP won the 2018 international auctions for the Bongkot and Erawan concessions and the new concessions start from 2022 with PTTEP as the operator. Two particularly large blocks taken over by Pertamina are the Mahakam block operated by Total SA before 2018, and the Rokan block operated by Chevron Corporation until 2021.

Nicole Zhou, Upstream Analyst at GlobalData, commented, “Countries across Southeast Asia are starting to see their NOCs as the key agents to improving national energy security. However, increasing responsibility for key producing assets may well come at a cost. Pertamina has not operated an asset on the scale of Mahakam and Rokan previously and the longest it has operated one of its top 10 largest projects by gross production is eight years.

“PTTEP currently has a small equity share in some of the fields that will be in the Erawan concession, but it will become the main participant and operator in the new concession. At Bongkot, it is already the operator, but will significantly increase its share in the field by becoming the sole participant.”

Zhou continued, “In Indonesia, regulations introduced over the past three years have made it easier for the state-run NOC, Pertamina, to take over blocks with expiring production-sharing contracts. In Thailand, PTTEP’s bid won based on its gas price – US$3.55/MMbtu – and profit share terms, which are thought to be more competitive than Chevron’s proposed terms.”

As Thailand and Indonesia try to improve the security of their energy supplies and increase their control of reserves, the NOCs may be taking on more than they can handle. Gas production in April 2019 from Mahakam block that Pertamina took over was only 666.6 mmcfd, as the company struggled with rig mobilization and poor weather. The previous year, challenges with rig procurement and mobilization prevented Pertamina from meeting its production target for the block, which was already 75% of 2017. Stabilizing production in these major projects such as Mahakam and Rokan in Indonesia and the Erawan concession in Thailand will be a big stretch for Pertamina and PTTEP.

Zhou added, “The mature fields will require advanced technologies, extensive management experience and consistent production maintenance/enhancement expenditures to compensate for the high natural decline rates. It remains to be seen whether these national oil companies will be able to learn quickly enough to convert their new assets into increased production.”

Renewables

Telekosang powers Malaysia’s mini-hydro Green sukuk

6 June 2019

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Malaysia

SINGAPORE, June 7 (IFR) – Telekosang Hydro One is set to launch the world’s first Green sukuk to fund small-scale hydropower projects next month, burnishing Malaysia’s credentials as the world leader for Islamic project bonds.

Telekosang will raise up to M$590m (US$143.2m) in senior and junior sukuk with tenors of four to 20 years under the wakalah bi-al-isithmar concept. MIDF Amanah Investment Bank is sole principal adviser and lead arranger, as well as joint lead manager with Bank Islam.

The mini-hydro financing is aligned with Malaysia’s framework for sustainable and responsible investment sukuk, and with the ASEAN Green bond standards, which are based on the International Capital Market Association’s Green bond principles.

The efforts paid off in July 2017 when Tadau Energy sold the country’s first Green Islamic project bond – a M$250m multi-tranche transaction to finance a 50MW solar power project. In October 2017, Quantum Solar Park Semenanjung raised M$1bn in Green SRI Islamic bonds to fund the construction of three 50MW solar power plants, combining the assets in a single deal that promised economies of scale for the borrower and greater liquidity for investors. But severe delays to the completion of two of Quantum’s plants have clouded investor sentiment, especially towards Green bonds to fund greenfield projects.

Bankers are thus hopeful that a successful financing for two mini-hydro projects will reopen the market for Green project bonds in Malaysia.

The Telekosang project comprises two small plants with a combined installed capacity of 40MW to maximise economic and financing resources. A 24MW plant will be built, operated and managed by Telekosang Hydro One (TH1), which will also be the sukuk issuer, while another 16MW plant will be built, operated and managed by Telekosang Hydro Two (TH2). Both plants will be built on Sungai Telekosang in the Sabah state on a run-of-river scheme, which means no dam will be constructed, and hence no flooding of the area will be necessary.

WATERTIGHT STRUCTURE

Total project costs are estimated at M$587.5m, which will be about 80% funded by senior bonds and the balance by junior bonds and redeemable preference shares. Bookbuilding of senior bonds for up to M$470m is expected to launch in mid-July, while the junior bonds will be offered to Telekosang’s sponsors as zero coupon notes. RAM has rated the senior sukuk AA3 and the junior sukuk A2. The terms of the preference shares have not been disclosed.

A contingency sum amounting to 6% of the turnkey contract, a three-month construction period buffer and a fixed-priced, lump-sum contract with Sinohydro and its parent Power Construction Corporation of China will provide more comfort to investors. There is also a minimum finance service coverage ratio of 1.25x.

The project is jointly owned by Senja Optima, a privately owned hydropower developer, and Inno Hydropower, a subsidiary of Yayasan Sabah Group, a foundation owned by the Sabah state government. The two plants have 21-year power purchase agreements with sole offtaker Sabah Electricity.

The Climate Bonds Initiative regards hydropower projects as important in the transition to a low-carbon economy with significant energy storage potential and an established, renewable source. Mini-hydropower projects with capacities of 50MW and below are perceived to have a far smaller carbon footprint than their large-scale peers, and development of such mini-hydro plants has taken off around the world.

The smaller hydropower plants have also attracted critics, who argue that the cumulative environmental impact of a proliferation of small projects, such as the fragmentation of a river system, may be not worth the benefits from a relatively small amount of power.

Nevertheless, the Telekosang project has received a Tier-1 environment benefit ranking from RAM Consultancy Services to recognise its contribution to a low-carbon future.

Energy Cooperation

Malaysia’s Petronas set to supply Thailand’s EGAT its first LNG imports

6 June 2019

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Malaysia

[BANGKOK] Malaysia’s state oil and gas company Petronas has been selected to supply Thailand’s state-run Electricity Generating Authority of Thailand its first liquefied natural gas (LNG) imports, a company spokesman told Reuters on Thursday.

Petronas has been selected out of 12 short-listed companies that also included Qatargas, Royal Dutch Shell, Chevron Corp, Total SA and Japan’s Marubeni Corp .

Petronas and EGAT are still negotiating the terms of the contract, and EGAT is negotiating how much it will pay Thailand’s PTT, an EGAT spokesman said.

EGAT currently buys gas from a state-owned unit of PTT Pcl . PTT and its subsidiary are Thailand’s sole gas supplier and LNG importer.

Petronas officials could not be reached for comment due to a public holiday on Thursday.

The contract terms being negotiated could not be confirmed, but one source familiar with the discussions said price levels are in line with the market, at between 11 per cent and 12 per cent of Brent crude oil prices.

Thailand’s largest power producer, EGAT, had expected to finalise purchase agreements by June and begin LNG shipments by September, a company official said in April.

But this could be delayed pending a final decision by the Thai government, three industry sources told Reuters.

“The government has raised the issue of take-or-pay and has questioned EGAT what it can do if it cannot take the contracted volumes,” one of the sources said.

The EGAT spokesman declined to comment on the matter.

EGAT was initially asking for up to 1.5 million tonnes per year of LNG via Thailand’s existing Map Ta Phut LNG receiving terminal in the eastern part of the country, to start from March 2019 for a period of four to eight years.

EGAT’s imports are part of a government plan to boost competition in Thailand’s power sector.

Bioenergy

Transforming trash to energy for heating water at Gardens by the Bay

6 June 2019

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Singapore

SINGAPORE – Gardens by the Bay is one step closer towards going zero waste by adopting technology that converts trash to energy and a carbon-based product which may enhance plant growth.

Energy provider SP Group has created a 6m-long enclosed system that will turn food waste, plastic and general waste into thermal energy at 650 deg C. The thermal energy is used to heat a large tank of water, which is used by the food and beverage outlets in the Gardens.

As a by-product of the chemical reaction, 5 per cent of the waste’s volume becomes biochar – carbon-based chips that resemble charcoal. The biochar will be used in the Gardens’ research to find out if it helps to improve plant growth and health.

Since the waste is not incinerated and some carbon is locked in the biochar, the system reduces the carbon footprint by up to 20 per cent, compared against incineration.

On Thursday (June 6), SP and the Gardens, with the support of Singapore investment company Temasek, signed an agreement at the Ecosperity Conference 2019 to put the system on a two-year trial. The signing was witnessed by Minister for the Environment and Water Resources Masagos Zulkifli.

The conference brought together global corporate leaders, innovators and experts to discuss how business growth can thrive in a sustainable manner.

A circular economy minimises waste by using resources for the longest time possible, regenerating and recycling products and materials in a closed production loop. This is different from the traditional linear economy where products are made, used and disposed.

How SP Group’s gasification system transforms trash to energy

SP’s system, which began operating last month and will run as a pilot project until May 2021, will help to reduce the country’s reliance on the Pulau Semakau landfill, which is expected to be filled by 2035, and instead help boost a circular economy.

All of the chemical reactions and equipment are contained in a compact system into which a large trash bag containing food waste, plastic, cardboard and wood chips is loaded.

Since the technology can handle almost all waste except bulky items and metals, minimal sorting is needed.

A bit of piped town gas is needed to kick start the chemical reaction, known as gasification. As the reaction generates heat, the waste is converted into synthetic gas, or syngas, which contains primarily carbon monoxide and hydrogen.

The syngas then undergoes combustion to produce heat or thermal energy. The entire process, which takes between 10 and 15 minutes, is self-sustaining.

The thermal energy heats a 2,000-litre water tank and the hot water is sent to the Gardens’ F&B outlets for their consumption and washing uses. Previously, electricity was used to heat water.

Mr Thomas Seow, Gardens by the Bay’s senior director of research and horticulture, said:.”The Gardens is an ideal location for the pilot because it has a (variety) of waste that can be tested through the gasification system to find outcomes and data.

“Hot water and biochar can be used here and need not be transferred out of the Gardens. The products can be recirculated within the area.”

This is not the first time gasification is being used in Singapore. Earlier this week, the Nanyang Technological University launched a bigger gasification system to convert solid waste generated on campus, which runs at a higher temperature and can break down metals and bulky materials.

SP’s system can handle up to one tonne of waste every 24 hours, but the trial will have it running eight hours a day, converting about 300kg of waste each day. Between four and five tonnes of waste is collected at the Gardens every day.

If SP and the Gardens decide to expand the project after the two-year trial, more containers may be deployed or bigger ones built, said SP’s Singapore district cooling chief executive officer Jimmy Khoo.

“Beyond the Gardens, we think the system can be deployed in places such as hotels and hospitals where they have waste and big needs for hot water for sanitation,” added Mr Khoo.

The project between SP and the Gardens is part of the National Environment Agency’s (NEA) regulatory sandbox project that was announced at CESS 2018. The regulatory sandbox allows interested parties to trial new environmental services-related technologies and solutions in a controlled environment within a certain time period.

In the other project approved by the NEA, a digital platform was created for logistic companies to efficiently pick up used cooking oil from F&B outlets and recycle the oil properly/

Correction note: In an earlier version of the story, we said that the agreement between SP Group and Gardens by the Bay was signed at the CleanEnviro Summit Singapore (CESS) Catalyst 2019 . This is incorrect. The agreement was signed at the Ecosperity Conference 2019 We are sorry for the error.

Correction note: In an earlier version of the story, we said that Temasek Holdings supported the trial project. This is incorrect. It should be Singapore investment company Temasek. We are sorry for the error.

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