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  • Coal
12 March 2019

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  • Philippines

MANILA, Philippines – (UPDATED) The San Juan municipal council on Monday, March 11, passed an ordinance declaring the town coal-free via a unanimous vote.

Authored by councilor Miguel Corleone Magsaysay, Resolution No. 03-2019 declared the municipality of San Juan environment-friendly and coal-free.

The ordinance also bans the construction, development, and operation of coal-fired power plants in San Juan.

The town council passed the resolution as Global Luzon Energy Development Corporation (GLEDC) prepared for the construction of a 670-megawatt coal-fired power plant in neighboring Luna town, a project strongly opposed by residents and environment advocates who also want a local anti-coal ordinance in Luna.

Magsaysay said the ordinance is a victory for the town, and thanked all those who supported the initiative.

Tina Antonio, one of the resource speakers invited by the council during its hearings, described the ordinance as “a collective opposition to potential and existing coal-dependent industries, as well as a call for developers to seek alternative sources of energy generation.”

Antonio, president of the San Juan Hotel Resort Restaurant Association, also urged her fellow voters to support leaders who would “protect” them.

“As voters, we are obligated to protect ourselves. This means we should also vote for leaders who could protect us,” she said.

Romeo Camacho, legal counsel of La Union’s anti-coal groups, welcomed the development as it further strenghtens the voice of advocates in the region against coal-fired plants.

“With the Manifesto issued by Bishop Daniel O. Presto and the clergy of La Union, the Resolution of the Integrated Bar of the Philippines, La Union Chapter both condemning the proposed CFPP and then this, we feel invigorated and elated for finally our vision of a coal-free La Union is slowly being realzed,” Camacho said. – Rappler.com

  • Renewables
12 March 2019

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  • Vietnam

Hung was speaking at an international conference themed “Vietnam: Towards a Low Carbon Energy Future Conference”, co-hosted by the British Embassy in Vietnam and Vietnam Energy Association (VEA) in Hanoi on March 12.

According to Hung, projections indicate that, by 2030, Vietnam’s economy will continue to grow at a high level from 6.5-7.5% per year and, as such, high priority must be given to ensuring the energy demand for national development in a sustainable way.

The renewable energy development strategy for the 2015-2030 period, taking into account 2050, approved by the Government of Vietnam in September 2015, set specific targets, in which the amount of power produced from renewable energy sources will increase from 58 billion kWh in 2015 to 101 billion kWh by 2020, 186 billion kWh by 2030 and 452 billion kWh by 2050.

In order to encourage the development of renewable energy, the Ministry of Industry and Trade has developed and submitted to the Government to issue a series of mechanisms for solar power, wind power, electricity produced from solid waste and biomass power. Vietnam has also promulgated preferential policies for investors such as providing credit priority, tax exemption and reduction and land rent to encourage them to invest in this sector.

Deputy Minister of Industry and Trade Cao Quoc Hung speaks at the workshop. (Photo: NDO/Dieu Ha)

As a result, by the end of 2018, the country had put into operation 285 small hydropower, eight wind power, and 10 biomass power plants, with combined capacity of each category reaching 3,322MW, 243W and 212MW respectively.

However, according to Hung, rapid development of renewable energy sources is also facing shortcomings and challenges, including high investment costs, limited capacity of the power grid infrastructure for renewable energy, huge land use and difficulties in the control and regulation of electricity systems.

At the conference, a delegation of 30 UK companies in the renewable energy and green finance sector shared the UK’s approach to policy and regulatory development and expertise with their Vietnamese partners in low carbon energy, from research and innovation to cost reduction and technologies.

British Ambassador to Vietnam, Gareth Ward affirmed that the UK would work closely with Vietnam to support the country in the process of shifting away from fossil fuels and increasing the share of renewables in the future.

  • Electricity/Power Grid
12 March 2019

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  • Myanmar

The technology group Wärtsilä will support the 145 MW Kyaukse gas engine power plant in, Mandalay region, Myanmar, in meeting its availability guarantees and other obligations through a 5-year Operation and maintenance agreement. The agreement has been signed with the plant owners, PowerGen Kyaukse Co. Ltd., in February 2019 and the order was booked in Q1 2019.

The newly installed power plant, powered by eight Wärtsilä 50SG gas fuelled engines, is being built on a fast-track basis to alleviate the shortage of electricity in Myanmar. The electricity produced is fed to the national grid, and under a Power Purchase Agreement with the Ministry of Electricity and Energy (MOEE) of Myanmar, the owners are obliged to provide plant availability and heat rate guarantees. By contracting Wärtsilä to operate and maintain the facility, compliance with these requirements can be assured.

Mr U Maung Kyay, Managing Director of PowerGen Kyaukse commented: “Wärtsilä engines provide the necessary efficiency and baseload power that Myanmar needs today, and in the future it will provide the flexibility required to integrate more renewables into the system. Wärtsilä’s expertise in running and maintaining power plants is a valuable advantage that we are pleased to utilise. This project will create jobs locally and in addition, it will enable knowledge transfer between Wärtsilä and the local staffs of the power plant owner.”

Mr U Aung Hlaing Oo, Board of Directors of PowerGen Kyaukse added: “We consider Wärtsilä to be our long-term partner as we help to build up the energy sector in Myanmar.”

In response, Sushil Purohit, Vice President, Middle East Asia, Wärtsilä Energy Business said: “This Operation and maintenance agreement is the first Wärtsilä Lifecycle solution to a power plant in Myanmar. Wärtsilä’s experience and track record in operations and maintenance services dates back almost 30 years, which is a convincing reference for our customers. Having supplied this power plant with the generating sets, this follow-up agreement is a clear endorsement of the added value that we can bring to our customers.”

Wärtsilä Operation and maintenance agreements are individually tailored to meet the needs of each customer. They represent an efficient business solution covering every aspect of day-to-day operations, and all related maintenance and administration tasks with the aim of maximising the plant’s productive life. Wärtsilä offers performance and lifecycle cost guarantees. This allows owners to focus on their core business in the knowledge that the power plant is being run expertly and efficiently.

About Wärtsilä Energy Business
Wärtsilä Energy Business is leading the transition towards a 100% renewable energy future. As an energy system integrator, we understand, design, build and serve optimal power systems for future generations. Wärtsilä’s solutions provide the needed flexibility to integrate renewables and secure power system reliability. Our offering comprises engine-based flexible power plants – including liquid gas systems – hybrid solar power plants, energy management systems, and storage and integration solutions. We support our customers over the lifecycle of their installations with services that enable increased efficiency and guaranteed performance. Wärtsilä has 70 GW of installed power plant capacity in 177 countries around the world. For more information, visit www.wartsila.com/energy.

About Wärtsilä
Wärtsilä is a global leader in smart technologies and complete lifecycle solutions for the marine and energy markets. By emphasising sustainable innovation, total efficiency and data analytics, Wärtsilä maximises the environmental and economic performance of the vessels and power plants of its customers. In 2018, Wärtsilä’s net sales totalled EUR 5.2 billion with approximately 19,000 employees. The company has operations in over 200 locations in more than 80 countries around the world. For more information, visit www.wartsila.com.

  • Oil & Gas
11 March 2019

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  • ASEAN

As Southeast Asia becomes one of the fastest developing regions in the world, concerns over its energy security is fast growing. Southeast Asia has a combined population of over 600 million people and an economy worth nearly US$3 trillion. Furthermore, the World Economic Forum (WEF) forecasts that the region will become the fifth largest economy in the world by 2020.

With the region developing rapidly, demand for energy is now higher than ever. Southeast Asia’s energy demands have grown 60 percent over the past 15 years and is forecasted to grow by another two-thirds by 2040. One factor contributing to such a massive rise in energy demand is the fast-growing economy. As the economy expands, more energy is needed to power the economy. Aside from economic growth, the population of Southeast Asia is also forecasted to expand by 20 percent with the urban population alone growing by over 150 million people. These factors combined are the driving force behind the region’s growing energy demand.

To supplement this growing energy demand, the International Energy Agency (IEA) mentioned in its Southeast Asia Energy Outlook 2017, that demand for oil and coal is expected to swell in the coming years.

The growing dependency on oil and coal to power the surge in energy demand in the region has become a cause for concern. The IEA mentioned that energy security could become an issue for Southeast Asia in the future if it begins to reorient itself as an energy importer rather than an energy producer.

ENERGY

Source: International Energy Agency, 2017

There is no real consensus on the meaning of the term “energy security” but the IEA, an intergovernmental organisation which works to ensure reliable, affordable and clean energy for its members, defines energy security as “…the uninterrupted availability of energy sources at an affordable price”.

The concern for the region isn’t exactly about the affordability for its consumers but for their governments. With the increasing demand for energy, oil demand is expected to grow from 4.7 million barrels per day to about 6.6 million barrels. Southeast Asia used to be known for its rich oil fields, however this resource is now depleting fast. Aside from Brunei and Thailand, the region’s biggest oil producers – Malaysia, Indonesia and Vietnam – are having a tough time keeping up with the growing pace of oil demand in the region. These countries today have become net importers of oil rather than exporters. It is predicted that crude oil imports will more than double in the region by 2040.

Meeting energy demand by way of imports could place a strain on government expenditure and trade balances. With oil imports increasing, Southeast Asia is expected to register a net deficit in energy trade of over US$300 billion in 2040. The burden would have an even worse effect for countries that employ oil subsidies such as Indonesia, Thailand and Malaysia. The consumers there might not realise it, but their governments will feel the burden of importing oil along with the added cost needed to subsidise it for their respective citizens. Continuing to do so over the course of the next decade will not be sustainable.

Therefore, these governments need to reform some of their policies to ensure energy security in their respective countries. One of the ways to ensure energy security, is to rely on more affordable and sustainable sources of energy. Oil prices are known to be unpredictable and prone to market forces. Renewable energy on the other hand could provide clean energy at stable prices.

The IEA states that interconnection of energy systems in the region would bolster energy security. ASEAN is still a long way from realising its goal of an ASEAN Power Grid, and it needs to work on developing it swiftly. The ASEAN Power Grid was first conceived in 1997 but not much progress has been made since then. Cross-border energy interconnections benefit everyone and would be less costly to develop if all ASEAN countries were involved.

While energy demand will continue to rise, ASEAN nations need not have to rely on traditional energy sources such as oil to fuel it; especially when doing so may raise energy security concerns. Governments in the region need to employ alternative energy sources and work together to maintain energy security not only for their own nations, but for the rest of ASEAN as well.

  • Energy Cooperation
11 March 2019

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  • Philippines

ISRAELI firm Ratio Petroleum Ltd. wants to partner with Philippine National Oil Company-Explo-ration Corp. (PNOC-EC) to jointly explore possible petroleum reserves in the east Palawan basin.

Ratio Petroleum was awarded Service Contract (SC) No. 76 covering Area 4 of Eastern Palawan, as part of the Department of Energy’s (DOE) fifth Philippine Energy Contracting Round (PECR), launched in May 2014.

SC 76 spans 416,000 hectares across the east Palawan basin for potential oil and gas resources. The seven-year exploration project is expected to cost $34.35 million, which will be used for studies, data gathering and drilling activities over the initial seven-year contract period.

DOE Undersecretary Donato Marcos said Ratio Petroleum proposed to expand the area in which exploration activities will be conducted and enter into a farm-in agreement with  PNOC-EC.

“They have expressed interest in nominating for the expansion of SC 76 to get a maximum area of 1.5 million hectares, farming in with PNOC-EC and also looking at joint nomination with EC. They have expressed serious interest,” said Marcos.

DOE Secretary Alfonso Cusi said representatives of Ration Petroleum are in the country to discuss their plans. “Ratio people are in town since Monday,” said Cusi last week.

There are currently 23 active petroleum service contracts in the Philippines with the following developers: Shell Philippines Exploration, Total E&P, PNOC-EC, Nido Petroleum, Philodrill, PXP Energy and Galoc Production Company.

The largest and most successful natural gas industrial project in Philippine history is the Malampaya Deep Water Gas-to-Power Project.

Ratio Petroleum was established in 1992 and has a number of large-scale operations at the Levant basin in the eastern Mediterranean Sea, off the coast of Israel, as well as offshore operations in the Republic of Malta and the Co-operative Republic of Guyana.

19 firms

Meanwhile, Marcos said the agency has received firm interests from nine firms to explore pre-determined areas for possible oil and gas reserve, while 10 firms have nominated their respective areas of interest under the Philippine Conventional Energy Contracting Program (PCECP), a hybrid of PECR.

The DOE is aggressively pursuing the implementation of the PCECP so the country could establish a strong “Explore, Explore, Explore” program.

He did not identify the 19 interested firms.

Under the PCECP, there are two modes of application potential investors may pursue.

First, interested parties may wish to bid on the 14 Pre-Determined Areas identified by the DOE (one in Cagayan, three in East Palawan, three in Sulu Sea, two in Agusan-Davao, one in Cotabato and four in West Luzon). The application period is 180 days, and was officially opened last November 22.

Alternatively, the applicants could also nominate and publish other areas of interest. In this mode, applications could be submitted at any time of the year, and would be subjected to a 60-day challenge period.

All accepted applications shall be evaluated by the DOE Centralized Review and Evaluation Committee based on the criteria pursuant to Department Circular No. DC2017-12-0017.

  • Oil & Gas
11 March 2019

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  • Philippines

MANILA, Philippines — More foreign firms are keen on investing in the country’s oil and gas exploration sector, according to the Department of Energy (DOE).

Foreign firms have expressed interest in pre-determined areas (PDAs) offered under Philippine Conventional Energy Contracting Program (PCECP), DOE Undersecretary Donato Marcos said.

“For the PDAs, there are nine nominations which are mostly foreign companies, while there are 10 parties who have nominated new areas for oil and gas exploration activities,” he said.

The PCECP offers 14 pre-determined areas and the option for investors to propose their own exploration area, making oil and gas exploration a dynamic investment prospect for players in the energy sector.

Among the foreign companies with serious interest in the Philippine oil and gas sector is Israeli firm Ratio Petroleum Ltd., DOE Secretary Alfonso Cusi said.

“Ratio Petroleum has been in town since (last) Monday and they are expressing interest in nominating many areas,” he said.

Ratio Petroleum is the operator of Service Contract (SC) 76, the first contract signed by President Duterte in October last year. It holds 100 percent of the rights in the block.

Their interest is focused on expanding its existing contract and is also looking at another prospect with government.

“One of their concern is the expansion of SC 76 to get maximum area of one million and 500 hectares,” Marcos said.

SC 76 covers approximately 4,160 square kilometers at water depths ranging between 900 and 1,700 meters.

“The other one is farming in with PNOC-EC (PNOC Exploration Corp.) in SC 37. It’s on-shore. It is also looking at joint nomination with PNOC-EC (under PCECP),” Marcos said.

SC 37 was awarded to PNOC EC in July 1990, covering an area of 360 km2, originally from 2,200 km2.

Another foreign firm looking at projects in the Philippines with Ratio is Delek Group, also an Israel-based firm focused on the gas sector, Cusi said.

“They have two interests, one is to drill, in case Ratio will drill in the country. The other one is to nominate also,” Marcos said.

The DOE undersecretary also said Rexxon Group has also signified interest in SC 59 offshore Palawan, also of PNOC-EC.

SC 59 was awarded to PNOC EC in January 2006 which covers an area of 14,760 km2 in offshore Southwest Palawan and is located north of the deep-water gas discoveries in offshore Malaysia.

Meanwhile, ExxonMobil has participated one of the PDAs under PCECP, Marcos said.

The DOE has been pushing for oil and gas exploration and development in the country and launched the PCECP in November last year as part of an intensified thrust to develop the petroleum exploration industry for global competitiveness.

Presently, there are only 23 active Petroleum Service Contracts (PSC) in the country, with the Malampaya Deep Water Gas-to-Power Project as the most successful PSC stemming from the previous Philippine Energy Contracting Round.

The contract for the Malampaya gas field in northwest Palawan will expire in 2024 but this can be applied for extension with the DOE.

  • Renewables
11 March 2019

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  • Malaysia

KUALA LUMPUR: Tenaga Nasional Bhd (TNB), through its wholly owned subsidiary, TNBX Sdn Bhd (TNBX) and the Public Works Department (PWD) are undertaking a feasibility study on the installation of rooftop solar on PWD buildings under TNB Solar Energy Purchase Programme.

The study is one of the five areas of collaboration that both parties are considering under a memorandum of understanding (MoU) signed yesterday.

The non-binding and non-exclusive three-year MoU was signed by TNBX managing director, Ir. Nirinder Singh Johl while PWD was represented by deputy director-general (specialist sector), Ir. Kamaluddin Abdul Rashid.

Ir. Nirinder described the signing of the MoU as a teamwork of two like-minded entities, keen to address energy management issues.

“Hopefully, this initiative will raise awareness for a greater need for energy management in Malaysia,” he said in a statement.

Under the MoU, TNB would invest, design, install and maintain the solar PV system on PWD buildings throughout a 20 to 25 year contract period. With the installation of the rooftop solar photovoltaic (PV) system with TNBX, PWD would enjoy the benefits of clean electricity at zero capital upfront cost.

PWD would also be billed for the electricity generated from the solar PV system at a rate that is lower than the normal TNB electricity tariff. In addition, PWD can sell any excess energy generated from the solar PV back to TNB under the Net Energy Metering scheme.

Hence, through this proposed TNB Solar Energy Purchase Program, PWD would benefit from clean electricity to meet its carbon reduction target without incurring any capital and gain from immediate overall electricity cost savings at minimal risk.

Both parties also seek mutual benefits in four other areas namely, promotion of green technology by focusing on joint intentions in public awareness and outreach; smart nation by embarking on industrial revolution 4.0 smart city solutions; precision operation by optimising asset management; and research excellence by conducting continuous research initiatives in renewable energy (RE) technology.

TNB is targeting to generate 1,700MW of RE by 2025 which would be in line with the government’s target of generating 20% of RE resources by 2030.

  • Renewables
11 March 2019

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  • Malaysia

KUALA LUMPUR (March 11): UiTM Energy & Facilities Sdn Bhd (UEFSB) has signed a Letter of Intent (LOI) with Petroliam Nasional Bhd’s (Petronas) New Energy unit, to collaborate and jointly develop large scale solar photovoltaic power plants and on-campus energy optimisation and solar rooftop projects.

UEFSB is a wholly-owned subsidiary of UiTM Holdings Sdn Bhd (UHSB), the investment arm of Universiti Teknologi MARA (UiTM).

Under the agreement, both parties aim to leverage on each other’s strengths and experiences to jointly develop and execute renewable energy and energy optimisation projects.

“We are looking at opportunities to develop large scale solar photovoltaic power plants and implement energy efficiency and optimisation programmes, as well as the installation of solar generators on the rooftop of selected buildings in UiTM campuses nationwide.

“With over 30 campuses throughout the country, UiTM can potentially save up to 30 per cent on its annual energy expenditure,” according to a joint statement by both entities here today.

Present at the LOI signing ceremony here on March 7 were UiTM vice chancellor Prof Ir Dr Mohd Azraai Kassim, Petronas’ senior vice president of corporate strategy Mohamed Firouz Asnan, UiTM Holdings group chief executive officer Norzaimah Maarof and Petronas’ head of new energy, Dr Jay Mariyappan.

Mohd Azraai said: “This collaboration will strengthen UiTM’s competitive advantage in the higher education sector to become a premier university of outstanding commercial growth, towards a greater sustainable future.”

UHSB currently owns a 61 megawatt (MW) large scale solar photovoltaic power plant in Gambang, Pahang, which commenced operations on March 8, 2019, and is expected to generate over 80,000 MWh of clean energy per annum and yield RM650 million in revenue over the next 21 years.

UHSB has also commenced development of its second 31 MW large scale solar photovoltaic power plant in Pasir Gudang, Johor.

The solar plant, when ready in the first quarter 2020, is expected to generate over 40,000 MWh of clean energy and yield RM315 million in revenue over 21 years, with the potential of avoiding 28,000 tonnes of carbon emission every year.

“By 2020, UiTM, via the two large scale solar power plants with a combined capacity of 92MW, will be contributing to almost four per cent of Malaysia’s renewable energy production,” said Mohd Azraai.

Meanwhile, Mohamed Firouz said the move into clean energy is seen as crucial to securing Petronas’ business sustainability.

“It is part of the company’s ‘Step Out’ strategy into new business areas that open up with the transformation of the energy sector, and plays a role in protecting our business from future disruptions,” he added.

Petronas is already working on a number of initiatives in Malaysia which aim to help the government meet its target for 20 per cent of the country’s electricity to be generated by renewable sources by 2025.

These include a solar project on the rooftop of Suria KLCC shopping mall here, a 10MW solar photovoltaic plant in Gebeng, Pahang, and installation and application of solar power at Petronas’ buildings and assets nationwide.

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