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Renewables

88 solar power plants to start commercial operation In June

22 May 2019

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Vietnam

A solar power plant in Mộ Đức District, central province of Quảng Ngãi began operation in April. — VNA/VNS Photo Phước Ngọc.

HÀ NỘI — Electricity of Việt Nam (EVN) has been speeding up completion of 61 solar power projects so that by the end of next month as many as 88 solar power plants will connect to the national grid and begin commercial operation.

As of April 23, only four solar power plants in Việt Nam had started commercial operation, but the number rose to 27 by May 17.

The additional 61 solar power plants in June are expected to generate a total capacity of 2,000MW.

With 88 solar power plants added to the national grid, renewable-energy (wind and solar) power plants in the country will generate about 4,000MW.

Renewable-energy power plant projects are mainly in the southern and south-central region, helping EVN to reduce pressure of supplying power to the southern region, a major economic hub of the country.

Under a Prime Minister decision dated April 11, 2017 on encouraging solar power projects in Việt Nam, projects connected to the national grid from June 1, 2017 to June 30, 2019 will be eligible to sell electricity to EVN at VNĐ2,086 (9.35 US cent) per kWh), excluding Value Added Tax (VAT), and adjusted according to the Vietnamese đồng-US dollar exchange rate. — VNS

Renewables

Philippines renewables to ‘rise 11% by 2030’

21 May 2019

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Philippines

Installed non-hydro renewable power capacity in the Philippines is expected to register a compound annual growth rate (CAGR) of 11% between 2018 and 2030, according to GlobalData.

GlobalData’s latest report, Philippines Power Market Outlook to 2030, Update 2019 – Market Trends, Regulations, and Competitive Landscape, states that the country’s growing economy will result in electricity consumption rising from 81.7 terawatt hour (TWh) in 2018 to 173.9 TWh in 2030.

GlobalData analyst Harshavardhan Reddy Nagatham said: “Growing population is driving electricity consumption in the Philippines. As a result, new investment in capacity addition is urgently needed.

“Peak demand has been increasing annually and a lot of new operational capacity is expected to be unlocked in the near future.”

The share of thermal power in the total installed capacity is set to decline from 67.8% in 2018 to 53.7% in 2030, while non-hydro renewable energy sources are expected to increase their share from the current 16.9% to 26.9% in 2030.

The government is currently promoting the capacity addition of solar, wind and biopower capacity through feed-in tariffs.

Oil & Gas

Panel puts Egat’s LNG import plan on hold

21 May 2019

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Thailand

The Energy Policy Administration Committee (Epac) has sent back a plan from the state-run Electricity Generating Authority of Thailand (Egat) to import 1.5 million tonnes of liquefied natural gas (LNG) for the country’s power generation.

On May 10, Egat announced that it had selected a winning bidder to be the LNG importer and supplier for Egat’s power plants and aimed to propose its conclusions to Epac.

Malaysia’s Petronas LNG Ltd was selected as the winning bidder, competing against 11 other companies.

Last Thursday, Epac suspended Egat’s plan because the Energy Policy and Planning Office (Eppo) has doubts about the volume of LNG — 800,000-1.5 million tonnes a year — matching utilisation rates.

“The office is concerned that once Egat makes the massive LNG purchases, they cannot be fed to generate the power, resulting in a ‘take or pay’ situation,” said Energy Minister Siri Jirapongphan. “Otherwise, the LNG stock is an operating cost to be passed on to power bills. But the ministry did not doubt at all the selection process of Egat, and the office found that the imported price was in line with the bidding criteria that the bidder has to offer the lowest price compared with other LNG importing contracts.”

PTT Plc and Egat are the only two agencies that are eligible to import LNG. They were granted licences from the Energy Regulatory Commission (ERC).

Egat’s 1.5-million-tonne LNG contract is the first tranche, while PTT has signed purchase contracts totalling 5.2 million tonnes a year.

Mr Siri said Epac has ordered PTT and Egat to revise forecasts and plan for new imported LNG for 2020 to be in line with the imported volume of PTT.

“The ministry wants to make sure that the shipment volume will not be an obstacle to PTT’s volume, compelling the ‘take or pay’ situation in the future,” he said.

Moreover, Epac has ordered the ERC as the LNG regulator to open up third-party access to utilise PTT’s gas terminal and pipeline in order to build confidence that Egat’s imported LNG process will improve overall national energy security and PTT’s gas procurement.

“PTT, Egat and ERC have to report these assignments within two weeks to Epac,” Mr Siri said.

Once Epac approves Egat’s LNG plan, it will propose the agenda to the National Energy Policy Council chaired by the prime minister.

“The government is committed to maintaining power generation costs under the national power development plan (PDP) for 2018-37 and avoid any impact on consumers’ power bills,” Mr Siri said. “The new operator of Erawan and Bongkot, PTT Exploration and Production Plc, will use its capability to feed the natural gas to power generation with the cheaper cost, expected to lower power bills by 15 satang per kilowatt-hour from 2022 onward.”

Under the PDP, the government is opening up household solar power with plans to buy the electricity at 1.68 baht per kilowatt-hour.

Epac also authorised Eppo to conduct public hearings nationwide in order to draft a gas plan for 2018-37 because natural gas in the Gulf of Thailand accounts for 60-62% of the country’s power generation in 2019 but is expected to decline.

Meanwhile, gas demand for power generation stands at 5,000 million standard cubic feet per day, but it’s seen rising to 5,500 MMSCFD in 2037.

“The country needs to import LNG at 23 million tonnes a year by 2037,” Mr Siri said.

Others

Nissan and Delta pioneer Thailand’s first partnership to enable EV home charging

21 May 2019

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The deal supports Thailand’s electrification goal of 1.2 million units on the road by 2036 and will provide Nissan Leaf owners in Thailand international-standard charging facilities with Delta’s quality standard of service, certified by Nissan.

“Nissan Motor Thailand is committed to helping drive an electric-vehicle Nissan Leaf vehicle ecosystem in Thailand for the benefit of our customers, and Thai people, by supporting a greener future through electric mobility,” said Ramesh Narasimhan, president of Nissan Motor Thailand.

“To ensure this, we are honored to welcome Delta, one of the world’s leading power supply producers and thermal management solutions providers, on board to join us and drive Thailand toward an all-electric vehicle future.

“We believe an even more exciting future lies ahead through the goal of electrifying Thailand. That has already started through deals like the one here today with Delta and our recent ground-breaking collaboration with Thailand’s Metropolitan Electricity Authority that brings home charging options to ensure the proper infrastructure is in place for Nissan Leaf customers,” he said.

The partnership is supported by a Frost & Sullivan report which found that, for Thai consumers, having convenient and flexible charging options was one of the top three motivating factors to purchase an EV in Thailand.

As such, this deal gives access to Delta’s comprehensive EV charging and site management solutions already available to EV drivers in the US, Europe, Asia and Australia.

In addition, the exclusive partnership comes as the Nissan Leaf, the best-selling EV globally with more than 400,000 vehicles sold worldwide, started shipping to Thai customers this month.

“We leverage our core competencies in power conversion and management to develop and install world-class charging solutions for the global EV community, and now in Thailand. Owners of the all-new Nissan Leaf in Thailand can now confidently take to the roads supported by our safe and efficient charging solutions and localised service,” said Hsieh Shen-yen, president of Delta Electronics Thailand.

The agreement directly seeks to help pioneer green transportation in Thailand by giving consumers more options, allowing easier EV adoption.

For home and workplace charging, the Delta AC EV charger (7.36kW) will be available, and public charging stations will be serviced by Delta DC Quick EV chargers (50kW).

Nissan is also making the Delta AC and DC EV chargers available at 32 certified showrooms nationwide, while Delta will also provide onsite survey, installation and after-sales services.

“This is an important first step in Thailand, for Nissan to build electrification infrastructure to support lowering carbon emissions. We are confident that this joint effort will meet the requirements of our valued customers as they look to buy a full-battery EV, and create confidence and peace of mind about the many charging options available to them,” Nissan Motor Thailand’s president explained.

“Delta is excited to collaborate with Nissan Motor Thailand and to encourage EV adoption, that leads the country’s vehicle electrification. We believe in forging the most effective partnerships for a sustainable future that benefits every stakeholder and delivers on our brand promise of ‘Smarter. Greener. Together.’,” Delta Electronics Thailand’s head added.

The all-new Nissan Leaf, which launched at the “Thailand International Motor Expo 2018” for delivery in May this year, is the best-selling electric vehicle in the world with 25-per-cent global market share and the icon of Nissan Intelligent Mobility, the company’s vision to transform the way people drive and live.

The new e-powertrain gives the new Nissan Leaf 110kW of power output and 320nm of torque, improving acceleration and driver enjoyment.

Delta’s EV chargers come with a three-year warranty, nationwide technical support and free charging-box replacement under warranty.

Others

Power tariffs should have been increased more: MoIT

21 May 2019

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Vietnam

EVN engineers repair power lines. EVN ensured all procedures in calculating power bills to customers after the rise. — Photo courtesy of EVN

HÀ NỘI — Electricity retail prices should have been raised by 9.26 per cent instead of 8.36 per cent if Việt Nam Electricity (EVN) had correctly calculated the VNĐ3.26 trillion foreign exchange rate difference in 2018 into its power production costs.

The information was released by the Ministry of Industry and Trade (MoIT) in a report to Prime Minister Nguyễn Xuân Phúc.

Electricity tariffs were raised by 8.36 per cent to VNĐ1,864 (8.03 US cents) on March 20. However, many households have complained about sudden increases in their electricity bills, which doubled or tripled in April compared with previous months.

In response, the PM has instructed the MoIT to check on the increase as well as its impacts on CPI.

In the report, the ministry said the power tariff increase had been submitted to the Government for approval.

It said increasing input prices of coal and gas, along with the foreign exchange rate difference, made electricity production costs increase by VNĐ20 trillion. Of which, coal added more than VNĐ7.33 trillion while oil and gas added VNĐ7.39 trillion.

The ministry also said the current different pricing scheme for households and businesses was also being applied around the world. However, the scheme would be recalculated to ensure fairness among households.

The MoIT also added that EVN had followed the correct procedures in calculating power bills.

The group received and answered more than 71,500 requirements from customers relating to electricity bills in April.

At the 7th session of the 14th National Assembly (NA) which opened in Hà Nội on Monday, the NA asked the Government to report on recent increase of electricity and petrol prices and their effects on CPI and socio-economic development.

Deputy PM Trương Hoà Bình said authorities had been investigating and clarifying the increases to ensure transparency.

EVN’s chairman Dương Quang Thành said the group was building a pilot plan for the competitive electricity retail market it would submit to the MoIT for approval in July.

Thành said they had been working to privatise three power generation corporations and developing a National Load Dispatch Centre (NLDC). They would also privatise its retail power service for the electricity retail market by 2021.

“EVN completed its plan to turn NLDC into a one member limited company and will submit it to the PM for approval,” he said.

He added that EVN would complete a plan to separate power distribution and retail toward the establishment of a competitive electricity retail market.

In addition, it would invest in power market infrastructure to accelerate the market’s development.

Power consumption surges

Last Saturday, power production topped 36,000MW for the first time, according to EVN’s National Load Dispatch Center (NLDC). Consumption on the same day reached a record-high 756.9 million kWh.

EVN said consumption could go up to 800 million kWh per day during May and June as the weather gets hotter.

Summer heat intensifies while water shortage constrains power production

Last month, Việt Nam broke its national high temperature record as the mercury hit 43.4 degrees Celsius in Hà Tĩnh Province, according to French meteorological agency Meteo France. Weather experts have warned that Việt Nam should brace for more heat waves this summer.

Meanwhile, electricity production is facing challenges as reservoirs in the central and southern regions are low on water.

Despite these challenges, EVN has guaranteed that it will supply enough electricity this year. — VNS

Renewables

Malaysia – renewables replacing nuclear, but coal still on the cards

20 May 2019

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Malaysia

And renewables, particularly wind and solar, will also rise by 2.8 GW, according to a new report which explores the make-up of the country’s energy mix to 2030.

However, the study by analytics company GlobalData points out that rise of renewables will come at the expense of nuclear, which has seen new build plans stall because of strong public opposition.

As a net importer of electricity, Malaysia is primarily dependent on thermal resources for electricity generation and, although it possesses substantial fuel reserves, it faces the risk of declining energy security.

Last year, gas-fired power dominated Malaysia’s power portfolio, with a share of 43 per cent of total installed capacity. Coal and oil followed with 30.4 and 5.9 per cent respectively, while hydropower held a 17.2 per cent. But other renewables together accounted for less than 4 per cent of the total capacity.

The government had planned to adopt nuclear power to help wean itself off fossil fuel imports and, in turn, cut greenhouse gas emissions. It got so far as setting up a Nuclear Power Development Steering Committee and deployed three working groups to co-ordinate a nuclear plan. But the initiative was shelved following widespread public opposition.

GlobalData power analyst Harshavardhan Reddy Nagatham said that “progressive economic reforms and a continuous increase in industrial activity are expected to boost economic progress in Malaysia, driving the country’s GDP at a compound annual growth rate of 4.8 per cent during the forecast period. In addition, increasing population will result in a significant increase in electricity consumption.”

Malaysia plays host to 2019’s Asian Utility Week, from 3-4 September in Kuala Lumpur, which is colocated with POWERGEN Asia. Don’t miss it.

Energy Economy

9 investors seek clearance from Philippines for energy exploration

20 May 2019

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Philippines

MANILA, May 20 (Xinhua) — Nine local and foreign investors are seeking clearance from the Department of Energy (DOE) of the Philippines for their targeted nomination service areas in petroleum blocks under the Philippine Conventional Energy Contracting Program (PCECP), the DOE said on Monday.

To date, the DOE said 17 requests for the issuance of area clearance for various areas in the Sulu Sea, Quezon province, Albay province, and Mindoro province have been received by the DOE from these nine companies.

Three companies have successfully acquired area clearances and submitted their respective letters of intent (LOIs) to formalize their area nominations for approval by the DOE, it added.

Furthermore, the DOE said six companies have viewed and four companies have purchased technical data sets that include seismic lines and well listings.

“Interested parties must comply with the legal, financial and technical requirements, which include the proposed work program and economic development plan for the contract area,” the DOE said.

At present, the DOE said there are 22 active petroleum service contracts in the Philippines.

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

Following its successful kickoff in Singapore last month, the DOE said it is gearing up to continue its 2019 PCECP international roadshow at the American Association of Petroleum Geologists (AAPG) Annual Convention and Exhibition (ACE) in San Antonio, Texas, in the United States on May 19-22.

This will be followed by roadshows in North America, South America, and the Middle East, the DOE said.

“As we support and strengthen the effort of the (Rodrigo) Duterte’s administration to explore and discover indigenous petroleum resources, the DOE remains committed to establishing the ‘Explore, Explore, Explore!’ program that will elevate energy independence, security and sustainability through effective and reasonable development of all indigenous energy resources in the Philippines,” Philippine Energy Secretary Alfonso Cusi said.

Electricity/Power Grid

DoE circular on smart grids due by 3rd quarter

20 May 2019

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Philippines

THE DEPARTMENT of Energy (DoE) is scheduled to issue in the third quarter a circular covering the operation of smart grids in the Philippines as distribution utilities embark on projects to upgrade power systems in line with advances in the technology.

“Many have already adopted and implemented some level of smart grid initiatives in their operations, and the DoE is spearheading the formulation of a policy framework and roadmap for the smart grid implementation,” said Energy Assistant Secretary Redentor E. Delola during the The Future Energy Show at the Mall of Asia’s SMX Convention Center in Pasay City.

“As part of its implementation, we have already undertaken steps, such as the identification of the plans, projects and programs for the generation, transmission, distribution and load sector necessary for the establishment of the national smart grid framework; the creation of smart grid technical working group; the conduct of forums and workshops; and collaborating with other government agencies, stakeholders, private companies, and the academe through information sharing and education campaigns,” he added.

Mr. Delola was delivering a message for DoE Secretary Alfonso G. Cusi who was scheduled to give the conference’s keynote speech. He told reporters that a circular on smart grids is set to be released in the third quarter.

“It’s a roadmap pero in form of a circular ang ilalabas (It’s a roadmap but will be released in the form of a circular),” he said.

Mr. Delola said a smart grid includes the latest advancement in information, communication and technology. It allows households to receive real-time information on their power consumption. The same information is also available to distribution utilities.

He said when the country achieves full smart grid coverage, the level of competition will also be at full blast, that is, households will be able to directly buy electricity from retail suppliers.

With smart grids, households will also have access to information on when electricity demand is at its lowest, allowing them to schedule energy-consuming activities during off-peak hours when power costs are lowest.

Mr. Delola said smart grids would allow the system’s load profile to flatten as opposed to its current behavior, which is “too peaky.” Power demand peaks during times of the day when electricity usage is at its highest, resulting in thinning reserves and possible power outages.

He said the proposed circular will include specific capital expenditure projects that match the level of development of a distribution utility. The circular will enumerate the projects that an electric cooperative with minimal technology investments need to do, he said.

“The ERC (Energy Regulatory Commission) will just look into that roadmap, pagka-identified ka ng (when you are identified by the) Department of Energy at level 1, you can apply for these projects,” Mr. Delola said, adding that the regulator will have a guide on the projects that it needs to approve.

“We’re looking at five levels,” he said, with the country’s largest power distribution utility Manila Electric Co. (Meralco) at level 4. “Level 5 is really integrating everything — the DERs (distributed energy resources), lahat nung mga (all the) current developments.”

“When you talk about Meralco or Aboitiz, medyo (they’re a bit) advanced,” he said. “When you look at the coops malayo pa (they’re still far behind).” The Aboitiz group leads the biggest power distribution utilities in the Visayas and Mindanao.

In his speech, Mr. Delola said the forum is “very relevant and timely” as the DoE is working on how to ensure energy supply security and greater access to energy through the utilization of innovative technologies that will provide great help to fuel the economy in a sustainable manner.

“There are several factors that drive us to improve our current power system and venture towards smart grid. First, to have a more reliable, more efficient, secure and flexible grid, there is a need to integrate new and emerging technologies in our system. Second, the promotion of renewable energy as our policies, like net metering, renewable portfolio standards, green energy option, and a provision of a renewable energy market, make our system more complex,” he said.

“Third, the government is also promoting the use of electric vehicles, where over two million were sold in 2018 and its number is expected to increase significantly in the future. Lastly, the rapid development of ICT. All of these call for the urgent shift to smart grid, which is expected to provide a safe environment, reliable sources, flexible, sustainable and more efficient system, and competitiveness towards consumer empowerment.” he said. — Victor V. Saulon

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