MANILA, Philippines – The Asian Development Bank (ADB) has approved an umbrella facility of up to $100 million which will provide financing support including loans, guarantees, and letters of credit to help fund renewable power projects in Pacific island countries.
The Pacific Renewable Energy Program will support an estimated 5 separate renewable energy projects in ADB’s Pacific developing member countries over a 5-year period. ADB’s Pacific Department (PARD) and Private Sector Operations Department (PSOD) say they will work together to implement the program.
“The program will help to build urgently needed capacity for energy sector expansion and private sector interest in clean energy projects in the region,” PARD Director General Ms. Carmela Locsin said Tuesday. “The objective is to implement more renewable energy projects in the Pacific by working with power utilities to identify transactions at an early stage.”
Funding for power utilities in the Pacific the bank says is inadequate. Private sector investment in particular is crucial to expand renewable power generation as the region transitions from fossil fuels to clean energy. However, investment is restricted by a lack of governmental credit support for the payment obligations of power utilities. Development is also hampered due to a lack of bankable power purchase agreements, uncertainties over foreign currency availability and convertibility, and perceived political risks.
“This program is designed to work within these constraints and encourage private sector investment through an innovative blend of ADB’s direct private sector lending, ADB’s guarantees of commercial bank lenders, together with donor funds which provide a backstop to the payment obligations of the power utilities,” PSOD Director General Mr. Michael Barrow said Tuesday. “It will help remove barriers to investment by enhancing the creditworthiness of power utilities and mitigating perceived political risk for lenders.”
The program aims to spur self-sustaining private sector development and, over time, reduce reliance by power utilities on grants and subsidies. A first project proposed for approval under the program has been identified and a financing plan is under discussion. To meet international donor requirements, ADB says, participating projects will be required to adopt environmental and social standards and to demonstrate good gender parity in their energy projects and/or related community projects.
Electricity/Power Grid
Meralco to ink more power supply agreements
23 April 2019
–
Philippines
MANILA, Philippines — Manila Electric Co. (Meralco) is getting additional supply for the summer months, particularly for the midterm elections, from Millennium Energy Inc. (MEI) and Aboitiz Power Corp.
In a disclosure to the Philippine Stock Exchange yesterday, Meralco said it filed with the Energy Regulatory Commission joint applications for the approval of interim power supply agreements (IPSAs) with MEI and AboitizPower’s Therma Mobile Inc. (TMO).
The Department of Energy (DOE) exempted the IPSAs from the requirement for competitive selection process (CSP), which requires distribution utilities and electric cooperatives to undertake competitive bidding to secure PSAs with generation companies.
“With such filing of the joint applications and receipt of exemption, the mutual obligations to sell and purchase power under said agreements shall be implemented beginning April 26,” Meralco said.
Under the IPSA with MEI, Meralco will purchase up to 70 megawatts (MW) of power from April 26 to June 25.
This will be sourced from MEI’s 1×100-MW gas-turbine power plant, located at the Navotas Fishport Complex.
Meanwhile, the IPSA with TMO calls for the purchase of up to 200-MW contract capacity and associated energy, subject to restatement based on the results of capacity test, for one year from April 26 to April 25, 2020.
“This contract is a timely response of both AboitizPower and Meralco to the call of government for stable and reliable power going into the midterm elections and beyond,” AboitizPower oil business unit president and COO Celso Caballero III said.
TMO, with four floating power barges moored in Navotas, has a combined gross capacity of 242 MW. The facility went into preservation mode last Feb. 5, as well as voluntarily disconnected from the grid and de-registered from the energy market.
It is expected to be registered again with the Independent Electricity Market Operator of the Philippines Inc. (IEMOP) on April 22. Delivery of power to Meralco will commence on April 26.
The oil-fired barges in Navotas are considered ideal for providing peaking supply and ancillary services with its operational flexibility and the ability to start up quickly to respond to the needs of the grid. TMO will provide Meralco with up to 200 MW of additional power.
So far this month, the Luzon grid was placed on yellow alert for six days and red alert for four days as several power plants went on unplanned outage.
On April 12, several parts of Luzon, particularly in Metro Manila, experienced two to three-hour rotational brownouts because of the supply deficiency in the grid.
Read more at https://www.philstar.com/business/2019/04/23/1911694/meralco-ink-more-power-supply-agreements#huv0X0a83yEfRFPC.99
Dhaka and Bandar Seri Begawan yesterday signed seven instruments to step up cooperation in the fields of agriculture, fisheries, livestock, culture, sports and LNG supply.
The deals were signed after an official bilateral meeting between Prime Minister Sheikh Hasina and Brunei Sultan Hassanal Bolkiah at the latter’s official residence here.
The ministers concerned of the two countries inked the six MoUs and an exchange of note in presence of the PM and the Sultan, Foreign Secretary Shahidul Haque told reporters.
Agriculture Minister Abdur Razzaque and Brunei’s Primary Resources and Tourism Minister Ali bin Apong signed the MoU on scientific and technical cooperation in the field of agriculture.
State Minister for Fisheries and Livestock Ashraf Ali Khan Khasru and Brunei Minister Ali bin Apong signed two deals on cooperation in the fields of fisheries and livestock.
State Minister for Cultural Affairs KM Khalid and Brunei’s Culture, Youth and Sports Minister Aminuddin Ihsan inked the MoU on cultural and arts cooperation.
State Minister for Youth and Sports Zahid Ahsan Russel and Brunei Minister Aminuddin Ihsan signed the deal on cooperation in the field of youth and sports, while State Minister for Power, Energy and Mineral Resources Nasrul Hamid and Brunei’s Energy, Manpower and Industry Minister Mat Suny inked the MoU on cooperation in LNG supply.
Hanoi (VNA) – Vietnam’s construction sector is enhancing cooperation with international partners to help promote green growth.
In its action plan on green growth, the construction sector aims that half of big- and medium-sized cities in Vietnam meet green city standards by 2030. This plan is part of efforts to realise the national green growth strategy.
Deputy Minister of Construction Phan Thi My Linh said although cities have been paying attention to green growth, boosting urban green growth is still a new issue in the country, and there remains a big gap between expectations and what has been achieved.
The construction sector consumes a lot of natural resources and energy while emitting a considerable volume of greenhouse gases. Therefore, short- and long-term solutions are necessary, as is cooperation with foreign partners to minimise its impacts on the environment, she said.
As one of the countries most vulnerable to climate change, Vietnam has been working to improve its technical infrastructure’s capacity for climate change response, produce environmentally friendly building materials, apply energy efficient solutions to buildings and reinforce houses to cope with natural disasters.
These are fields in which Vietnam has great demand for cooperation with foreign partners, said Pham Khanh Toan – Director of the Department for International Cooperation under the Ministry of Construction.
Among the ministry’s joint projects with foreign partners, a project on energy efficiency in the building sector was carried out from 2014 to 2017 as part of the USAID Vietnam Clean Energy Programme. It benefited Hanoi, Hai Phong, Da Nang, Ho Chi Minh City and Can Tho.
This project aimed to help save energy, reduce CO2 emissions, promote energy saving activities and support low-emission development.
Meanwhile, the Asian Development Bank (ADB) has provided technical and financial assistance for water service companies in Vietnam to build criteria for these services. It has also helped the country to design a decree on public-private partnership and implement an urban environment programme since 2012.
The ADB recognised Vietnam’s efforts and achievements in associating development with green growth.
It said Vietnam is experiencing rapid urbanisation, and most of its GDP is contributed by cities. However, urbanisation has yet to meet expectations while the country is highly susceptible to climate change.
Between 2016 and 2020, the bank has agreed to support Vietnam with 600 – 800 million USD for climate change response and green city development.-VNA
Vietnam’s power sector has been expanding alongside its economy—at USD223.9 billion in 2017—one of the 20 fastest growing in the world with year-over-year growth rates ranging from above 5 percent per year to 7.1 percent from 2013 through year-end 2018.
Solar and other renewable energy resources figure to play a growing role in the country’s energy mix, but transitioning to an economy and society centered on emissions-free, environmentally friendly energy resources appears more than likely to take a back-seat to ensuring economic growth continues, accompanied by an increasing reliance on coal- and natural gas-fired power generation.
State-owned utility Electricity of Vietnam (EVN) anticipates some USD123.8 billion will be invested in development of Vietnam’s national power system within the next 20 years, according to a February 2019 Vietnamese news report. According to the latest revision to Vietnam’s national Power Development Plan VII, an average USD6.8 billion per year will be invested in the sector over the period. Two-thirds of this is expected to be invested in power plants, with a remaining 33.4 percent invested in grid network development.
In common with its ASEAN (Association of Southeast Asian Nations) peers, the Vietnamese government has relatively modest goals when it comes to raising renewable energy resources’ share of national power generation. Collectively, the 10 nations that make up ASEAN are home to some 650 million people, 14.3 per cent and 8.5 per cent of Asia’s and the world’s population respectively. Yet ASEAN accounts for just 6.6 percent of Asia’s and 2.8 percent of renewable power capacity installed worldwide, Assaad Razzouk, group chairman and co-founder of Singapore-based clean energy company Sindicatum Sustainable Resources, writes in a March 18 op-ed. Furthermore, ASEAN’s share of installed global renewable power capacity peaked in 2012 and has dropped 24 percent since, Razzouk added.
Summary of Existing Supporting Mechanisms for Renewable Energy
Generation sources
Technology
Tariff
Electricity sale price
Small hydro power
Electricity production
Avoided cost tariff published annually
598-663 VND/kWh (by time, region, season)
302-320 VND/kWh (surplus energy vs contracted)
2,158 VND/kWh (capacity price)
Data: Summarized from many legal documents on RE supporting mechanisms; Avoided-cost tariff referred in 2017.
Source: Vietnam Energy Outlook Report 2017 (Danish Energy Agency)
Hydroelectric power generation has long been, and continues to be, Vietnam’s primary renewable energy resource, but most of the nation’s hydro-power resource potential has been exploited. Totaling 18 GW as of 2015, Vietnam’s hydroelectric generation capacity is expected to increase to about 21.6 GW in 2020 nonetheless.
Source: Renewables in Vietnam: Current Opportunities and Future Outlook (EVBN)
Moving to realize those goals, the introduction of a solar feed-in tariff (FiT) in April 2017 has led to a large-scale solar power project pipeline of 20 GW. That’s about half the country’s installed power generation capacity, Rystad Energy highlights in a September 2018 RenewableCube newsletter. In addition, there are “thousands of small, off-grid solar power systems in operation, mainly in rural and remote areas” of Vietnam, Hogan Lovells, an international law firm, points out in its Renewable Energy in Vietnam 2018 report.
Commissioning large-scale solar power projects by a June 2019 deadline to qualify for government solar FiT incentives will be challenging, according to Rystad. “While it’s likely some projects will make this deadline, grid connection and commissioning for many likely won’t happen until after. Furthermore, there is little experience or technical expertise in Vietnam to deliver projects of this scale on such a short timeline,” according to the independent energy consulting services and business intelligence data provider.
That said, China’s JA Solar on Feb. 21 announced it had supplied 48.3 MW of PERC (Passive Emitter Rear Cell) PV modules for the 48.3 MW BP Solar 1 power plant in a coastal area of southeast Ninh Thuan Province, which engineering, procurement and construction contractor (EPC) Bac Phuong Joint Stock Co. recently completed ahead of schedule. The grid-connected, utility-scale project, which was brought online on January 20, is the first to make use of higher efficiency, bifacial PERC panels and is expected to generate 80 million kilowatt-hours (kWh) of electrical energy while avoiding 79,760 tons of carbon dioxide emissions per year.
Connecting solar, wind or other renewable power generators to the national utility grid is another major obstacle for project developers, however.
Vietnam, for example, claims (and is commonly perceived) to be a leader in renewable energy, while in reality its leaders have been pushing coal. Its current power development plan does not indicate any transition away from fossil fuels and proudly projects that future electricity demand will be met by more polluting fossil fuel sources. For instance, coal will increase to 53 per cent of its energy mix in 2030, up from 33 per cent in 2016.
—Razzouk writes in his March op-ed.
“To compound the mystery, Vietnam is inviting more investments in its solar sector with feed-in tariffs that are attractive on the surface. But the result is this increased capacity cannot be handled by the current transmission infrastructure and therefore is guaranteed to lose investors a lot of money.”
Power generation in Vietnam: A major expansion in the making
As is the case in many countries around the world, whether developed, developing or lesser developed, Vietnam’s government-run utility and its ownership of fossil-fuel power plants, poses one of, if not the biggest barriers to fostering development and growth of solar, wind and other emissions-free renewable energy resources in the country.
There are 73 power plants—hydro, thermal, gas and renewables—up and running in Vietnam at present, according to VietnamNet’s February 2019 report. Forty-eight have a power generation capacity greater than 30MW. Nearly all were built, and are owned and operated, by EVN.
Looking ahead, there are plans to invest in building as many as 98 new power plants with a total capacity of 59,444 megawatts (MW), according to the U.S. International Trade Administration (ITA). EVN plans to build 48 of them with a total power generation capacity of 33,245 MW at a projected cost of USD 39.6 billion.
EVN is able to self-finance or raise debt financing for just two-thirds of the investment capital required, VietnamNet points out. EVN and the Vietnamese government are looking to independent power producers (IPPs), including foreign investors, to provide the remaining third, possibly more.
Unfortunately for solar and clean energy proponents and supporters, much of this is likely to come in the form of coal-fired power plants. Fitch Solutions expects coal-power generation growth to increase rapidly in Vietnam over the next decade and dominate Vietnam’s power-sector expansion. “We forecast coal-powered generation to grow at an average of 10.1% y-o-y to reach about 50.5 percent of the power mix by 2028,” Fitch projects. Coal-fired power generation accounts for around one-third of Vietnam’s power generation capacity at present.
The credit analysis and rating agency points out that there are downside risks associated with Vietnam increasing its use of coal as a power-generation resource, due in particular to mounting environmental concerns, as well as Vietnam commitment to meeting U.N. Sustainable Development goals and carbon intensity-based greenhouse gas (GHG) emissions reductions goals as a party to the U.N. Paris Climate Agreement, however.
Foreign participation in solar power development
Arguments that solar and wind power are unreliable or too expensive are difficult to justify as they are now cost-competitive with conventional, fossil-fuel generation—given a regulatory and institutional framework that makes for a level energy market playing field. And that’s not taking account of the rising toll climate warming and environmental pollution is taking on human and environmental health and quality, a growing concern across the ASEAN region.
The falling cost and fast-growing deployment of battery-based energy storage in leading countries around the world adds to the feasibility of transitioning to zero-carbon energy. All that makes government and utility allegiance to centralized fossil-fuel and nuclear power generation questionable and suspect.
In spite of, or perhaps because of this, multilateral development banks, foreign aid and development agencies, multinational solar and renewable energy industry players and investors have been and continue to express interest in helping develop and grow Vietnam’s solar and renewable energy capacity. The World Bank in June 2014 approved a USD200 million loan and USD70 million credit to support the Vietnamese government’s power sector reforms, as well as climate resistance and development programs that should help Vietnam achieve its lower carbon-intensity, U.N. Paris Climate Agreement targets.
A solar power plant in Quang Binh Province, Vietnam
In 2016, the World Bank, the Asian Development Bank, the Japan International Co-operation Agency and the German Bank for Reconstruction made preferential loans to EVN amounting to USD1 billion. In addition, EVN has been working with France’s international development agency in order to receive two additional loans for the Se San 4 floating solar power plant project.
Barriers to solar market and industry development and growth
Just 1,800 Vietnamese households have installed rooftop solar power systems (total power capacity of 30 MW) over the past two years, according to the Vietnamese news report.
EVN Deputy General Director Dinh Quang Tri has proposed the government subsidize local household purchases of rooftop solar power systems and institute preferential policies for those who invest in solar power projects. Tri also proposed that Vietnam’s Ministry of Industry and Trade move quickly to amend its so-called Circular No.16 so as to enable EVN and its subsidiaries to sign official contracts and make payments for solar power produced by utility customers. Among other items, Circular 16 includes a set of three templates of model power purchase agreements (PPAs) for grid-connected projects, residential rooftop and commercial-industrial rooftop projects.
Speaking at the conference, an EVN representative said the state-run utility is negotiating with German international development bank KfW, which is interested in sponsoring EVN to the tune of €14 million (~USD16 million) to develop solar power projects. EVN has proposed the investment capital be set aside to install residential rooftop solar PV systems. Each qualifying household would receive VND2 million–6 million (~USD86–259) depending on systems’ generation capacity, according to the news report.
Dispute resolution rules and procedures that foreign or international solar and renewable energy project development and investment groups consider unfair also figure prominently among such issues. “Dispute resolution by the Vietnamese authorities or state agencies may not be viewed as an impartial mechanism, particularly in view of EVN being a state-owned entity related to the regulator,” according to a January 2018 study produced by international law firm Hogan Lovells’ Vietnam office. “The ability to refer a dispute to the Vietnamese courts may also not provide enough adequate comfort with regards to impartiality.”
A pivotal point for solar, renewable energy in Vietnam
All that said, Vietnamese government authorities and EVN appear committed to fostering development and growth of solar and renewable power across the country, and they’re learning and seeking to gain from lessons learned from the experiences of governments in countries and states, such as Germany, Spain and the U.S., in designing and instituting new, more effective and less costly solar and renewable energy policies and programs.
Dezan Shira highlights Vietnam’s tremendous solar energy resource potential. Some 1,600–2,700 hours of sunlight falls on Vietnam in a typical year. Average direct normal irradiance (DNI), a measure of the solar energy that reaches a unit area of land at a perpendicular, 90-degree angle, ranges between 4–5 kWh/m2.
Foreign investors and governments continue to express interest in helping develop Vietnam’s solar energy resource potential. “Germany believes in the nation’s [Vietnam’s] great potential for renewable energy, both from solar and wind power. Furthermore, there are immense opportunities for investors to develop these projects,” German Ambassador to Vietnam Christian Berger was quoted in a February 2019 Vietnamese news report.
Marking a pivotal point for the development and growth of solar and renewable energy in Vietnam, the Ministry of Industry and Trade (MOIT) has said it will implement a new, national solar feed-in tariff (FiT) program to take effect July 1, 2019, according to a March 1 industry news report.
The latest draft of Vietnam’s solar FiT 2
MOIT issued a revised draft of Vietnam’s second, two-year solar FiT on Feb. 22. In contrast to the first version, Vietnam’s solar FiT 2.0 would set tariff rates for solar power producers based on the location, as well as the power output, of generation facilities. A single, flat rate was applied to all projects as per Vietnam’s initial solar FiT, international law firm Baker, Mackenzie’s Vietnam practice highlights in a Vietnam draft policy update.
Vietnam’s draft solar FiT 2 would also distinguish between various types of solar power installations. Generally speaking, solar power producers will be able to qualify for tariffs as high as the Vietnamese dong equivalent of USD0.1087/kWh. Floating, ground-mounted and solar-plus-storage installations will be able to qualify for tariff payments of USD0.0667 and USD0.0944 per kWh, respectively. These compare to USD0.0935 per kWh under the existing FiT scheme, which is slated to expire at the end of June.
According to the draft, solar power project developers will be able to sign 20-year power purchase agreements (PPAs) with EVN. Vietnam’s recently established Electricity and Renewable Energy Authority is accepting and reviewing public comments regarding the draft until April 15.
In addition, Vietnam’s government offers a variety of incentives designed to attract foreign investment in solar and renewable energy. Renewable energy projects are eligible for the following special investment incentives according to Vietnam’s Law on Investment, Hogan Lovells points out. According to Hogan Lovells: “Under the Law on Investment, renewable energy projects are eligible for special investment incentives, as follows:
Corporate income tax preferences: Income from new investment projects for renewable energy production will be subject to corporate income tax at the rate of 10% for the first 15 years. By comparison, the lowest corporate income tax rate available to regular companies is 20%.
Import duty preferences: There is an exemption from import duty in respect of goods imported in order to construct or form fixed assets, such as raw materials, manufactured materials and other components.
Land-related incentives: Investors may be entitled to exemption from the land use fee that would usually apply for 11 years or, in cases where the investment project is in a region facing extreme socioeconomic difficulties, 15 years. In addition, during the capital construction period of a project (being the period of construction of a new building or plant for up to 3 years from the effective date of the land lease contracts), investors are entitled to an exemption from land rents and water surface rents. Furthermore, land clearance compensations and support will be provided, in accordance with the Law on Land. All land lease and land allocation for renewable power projects are handled by the relevant provincial People’s Committees.”
There are also additional incentives for specific types of renewable energy projects, Hogan Lovells adds.
“Foreign participation: There are currently no foreign ownership restrictions in relation to renewable energy projects. However, the renewables sector is predominantly locally invested and projects are generally equity financed or benefit from local bank financing (which may not be on a non- or limited-recourse basis as understood internationally). There are no precedents of internationally project financed renewables projects to draw from, although we understand that a number of foreign investors are looking at potentially significant development opportunities.
Security over land and assets: In addition, the following should be borne in mind when financing a renewable power project in Vietnam. Under the Law on Land, security over ‘land and assets attached to the land’ may only be granted to credit institutions operating in Vietnam. In addition, where the project is exempted from land-use rental payments (which would be the case for a wind or solar project if the project company avails itself of the possible exemption), then it can only mortgage the assets attached to the land (and not the land use rights themselves) with credit institutions authorized to operate in Vietnam. Structuring options may be available, and this is an area where practice is evolving.”
ABOITIZ Power Corp. is looking at acquiring renewable energy (RE) projects that are under development in Vietnam with capacities of between 50-100 megawatts (MW) each to take advantage of the feed-in tariff (FiT) scheme being offered in the Southeast Asian country.
Erramon I. Aboitiz, president and chief executive officer of AboitizPower, said the company is considering projects that employ solar and wind energy technologies.
“There are different projects, RE, anywhere between 50 to 100 MW or so are the projects that we’re looking at,” he told reporters in a briefing in Makati City after the company’s annual stockholders’ meeting on Monday.
Asked about the target total capacity for solar and wind, Mr. Aboitiz said: “We’re looking at several. We don’t have a specific target, frankly. We are just being opportunistic in what is available.”
Mr. Aboitiz said Vietnam’s FiT scheme, which offers a fixed rate to RE developers over a given period, is projected to go on for several more years.
“What they’ve done is they have an agreed FiT price that expires within a certain period. I think, for example, the one of wind, the price today expires October 2021. After that, they’ll have a new price,” he said. “The strategy is that they want to really build their RE capacity.”
Mr. Aboitiz said the company’s target RE plant should have to be ready and running by that time, thus he was looking at “projects that have been developed to a certain extent already.”
For solar, he said the new FiT rate should start after June or July this year, thus an “old project” would be an option. A partnership with a Vietnamese partner is the strategy, with the equity dependent on how much it is willing to sell down, he added.
In the local front, AboitizPower Chief Operating Officer Emmanuel V. Rubio said the energy company is bullish on renewable energy, especially solar power, with the government’s stance to implement rules on renewable portfolio standard, a program that requires utilities to source a portion of their requirements power from RE sources.
During the briefing, Mr. Aboitiz announced the appointment of Mr. Rubio as his replacement as president and CEO of the company once he retires at the start of 2020.
“We’re confident that Manny (Mr. Rubio) will continue to bring AboitizPower to greater heights,” he said.
PSA SIGNED
Separately, AboitizPower disclosed on Monday that subsidiary Therma Mobile, Inc. (TMO) had signed a power supply agreement (PSA) with Manila Electric Co. (Meralco).
“This contract is a timely response of both AboitizPower and Meralco to the call of government for stable and reliable power going into the midterm elections and beyond,” AboitizPower Oil Business Unit President and COO Celso C. Caballero III said.
TMO, with four floating power barges moored in Navotas, has a combined gross capacity of 242 MW. The facility went into preservation mode on Feb. 5, 2019, as well as voluntarily disconnected from the grid and de-registered from the energy market.
Meralco has also signed a PSA with Millennium Energy, Inc. for the purchase of 70 MW of electric power, subject to a net dependable capacity test, from the latter’s 100-MW gas-turbine power plant in Navotas Fishport Complex, Navotas City.
On Monday, shares in AboitizPower rose by 0.14% to close at P36 each.
Malaysia’s edotco Group, an integrated telecommunications infrastructure services company that specializes in tower services, has deployed a hybrid renewable energy solution with fuel cells to power remote, off-grid sites in Sabah.
Using electrolyzer-based fuel cells with hydrogen storage, solar and lithium batteries, the off-grid solution can generate clean energy to power base transceiver stations (BTS), the company said.
But extensive distance and challenging terrains like in Sabah and Sarawak can present considerable challenges, especially in terms of energy supply, according to edotco Group Chief Regional Officer, Wan Zainal Adileen.
edotco Malaysia has partnered Solar NRJ, which developed an Absolute Zero Carbon emission system in the deployment
This system serves as a viable alternative to backup diesel generators currently deployed in sites not connected to the grid.
“The combination of modular technologies engineered for zero carbon emissions is unique,” said Solar NRJ co-founder, Joseph Koh, adding that the solution also deters potential thefts as it is time-consuming to steal, compared to conventional batteries and fuel tanks, and have little to no resell value.
edotco Malaysia, which owns and operates a portfolio of over 10,000 towers across the nation, said the hybrid renewable energy project will be expanded to more of off-grid sites where solar can be readily harnessed.
Being in the equatorial region, Malaysia has high solar penetration. Hence, solar is naturally feasible source of energy. It can be rapidly deployed even in challenged areas.
KUALA LUMPUR: Debt-laden oil and gas services company Barakah Offshore Petroleum Bhdimage: https://cdn.thestar.com.my/Themes/img/chart.png
has entered into a memorandum of understanding (MOU) with Vallianz Holdings Ltd to form a strategic alliance for both parties’ to explore business opportunities in Malaysia and the Middle East.
Vallianz is 57.67%-owned by Saudi’s Rawabi Holding Company Ltd and is listed on the Catalist Board of the Singapore Exchange. The company owns and operates a young fleet of 76 offshore support vessels and covers markets in the Middle East, Asia Pacific and Latin America.
The development follows the resignation of Barakah’s chief executive office officer Nik Hamdan Daud last week to pave way for the restructuring of the loss-making company.
In a press release issued on Tuesday, Barakah said that by joining forces, both parties are able to leverage on each other’s strengths to expand their scope of services, technical capabilities and geographical reach along the oil and gas (O&G) value chain.
Under the MOU, will offer its engineering and operational capabilities to support Vallianz’s existing and future projects.
‘This includes technical consultation, feasibility studies, front-end engineering design and project engineering services, among others. The project scope also covers future co-tender arrangements for offshore projects which are deemed suitable by both parties,” the company said.
Barakah’s acting group chief executive officer Abdul Rahim Awang said the alliance is a springboard for the company to penetrate beyond Malaysia.
“Vallianz’s strong foothold in the Middle East opens up new opportunities for us to expand our reach into new markets while utilising our competencies and assets. The alliance also provides us access to various other assets that will
enable us to bid more competitively,” Abdul Rahim said.
Looking ahead, he said the company will continue to pursue similar strategic alliances in addition to tendering for more jobs.
“We are in the midst of formulating a debt restructuring scheme to manage the group’s debt. The successful completion of the debt restructuring exercise will put us on a firmer financial footing while relieving our cash flow in the short to medium term,” he added.
Barakah is saddled with RM335.6mil debts as of December last year.
Nik Hamdan’s who is Barakah’s major shareholder has been reducing his stake in the company in recent weeks, but still holds 31.1% as at April 19. He previously held 38.6% of the company’s shares.
Its other major shareholder, Samling Group has also been disposing its shares based on Bursa filings and now has an indirect 6.57% interest through Yaw Holdings Sdn Bhd.
Samling, the vehicle of Sarawak tycoon Tan Sri Yaw Teck Seng had invested in the stock in the middle of 2017 and held a 13.57% stake at one point.
Shares of Barakah closed unchanged at nine sen at midday with 18.16 million shares done.
Read more at https://www.thestar.com.my/business/business-news/2019/04/23/barakah-offshore-teaming-up-with-saudis-vallianz-eyes-malaysia-middle-east/#U2eQ6OUgMz7g63gO.99
State-owned utility Electricity of Vietnam (EVN) anticipates some USD123.8 billion will be invested in development of Vietnam’s national power system 
