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  • Energy Cooperation
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
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.

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.

  • Renewables
6 June 2019

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  • Singapore

SINGAPORE – One of the world’s largest single floating solar photovoltaic (PV) systems might soon find a home in the waters of Singapore’s Tengeh Reservoir.

In a bid to reduce its carbon footprint, national water agency PUB will from Friday (June 7) seek proposals from companies to design, build, own and run the nation’s first large-scale floating system of solar panels that will power water treatment processes.

Two smaller floating solar PV systems will also be deployed by the PUB at the reservoirs in Bedok and Lower Seletar in the second half of this year, for the same reason.

Alongside the conversion of food waste into agricultural compost and the use of water sludge to produce biogas as an alternative energy source, the floating solar PV systems are yet another tool in the nation’s arsenal to thrive in a resource-constrained world.

Minister for Environment and Water Resources Masagos Zulkifli announced the project in his speech at the Ecosperity Conference 2019 on Thursday, as he outlined a multi-pronged strategy to bolster Singapore’s defences against climate change and economic sustainability in a world with limited resources.

Now in its sixth year, the event hosted by Temasek investment company at Sands Expo and Convention Centre in Marina Bay Sands brought together corporate leaders, policymakers and innovators to discuss ways in which businesses could marry growth with sustainability.

“It is clear that the status quo in the way we consume our resources and grow our economy is not sustainable. The impact of climate change respects no geographical or national boundaries,” Mr Masagos said.

He cited a handful of scenarios in other parts of the world that underscored the gravity of the climate crisis, including the uncharacteristically warm weather last month in the region of Hokkaido, Japan, where a heatwave sent mercury levels soaring beyond those of previous years.

A third of the world’s arable land has already been lost due to ecological changes, he said, and the effect of extreme weather phenomena will put mounting pressure on critical resources such as food, energy and water.

“Growing population, rapid urbanisation, over-consumption of resources as well as the intensifying effects of climate change are all megatrends that we are grappling with,” said Mr Masagos.

In his welcome remarks, chairman of Temasek Holdings Lim Boon Heng said: “We cannot ignore the serious impact of climate change on our planet. We should all know by now that we are at a tipping point. The decisions we make today will matter.”

He cited the 1.5 deg C report released by the United Nations last year, which warned that the world had only 12 years to limit its carbon emissions in order to minimise global warming to moderate levels.

He added: “If we don’t reduce emissions, we will risk global temperatures reaching a point that will irreversibly damage the climate balance on Earth.

“If we don’t make those changes, the planet will make them for us, and the consequences will be very hard on humanity.”

To take on these challenges, Mr Masagos highlighted several strategies Singapore has adopted in its circular economy approach, where waste is minimised and transformed into resources.

This includes plans to convert incinerated bottom ash into construction material and to segregate and treat food waste – a major source of waste here – into agricultural inputs on local farms.

He also noted the integrated water and waste treatment plants at Tuas Nexus, expected to be fully ready by 2027, would shave more than 200,000 tonnes a year off national carbon emissions – equivalent to taking 42,500 cars off the road – by converting food waste and used water sludge into biogas sources.

Mr Masagos said businesses have a key role to play and noted that Keppel Corporation, for instance, accumulated $55 million in cost savings last year by redesigning its corporate offices to include energy-efficient and environmentally sustainable features such as photo sensors that dim lights in the buildings according to the amount of daylight present.

One strategy he highlighted is for businesses to adopt a triple bottom line framework, looking at its environmental, social and financial impact, to evaluate company performance. He cited DBS Bank as an example of a corporation that has done so by declaring that it would stop funding new coal-fired plants beyond its existing commitments and increase financing for renewable energy instead.

Mr Lim said that there was a lot to learn from China in terms of implementing green solutions, a key topic at this year’s Ecosperity conference.

He noted that in 2012, many were “sceptical” when China, the world’s biggest polluter back then, announced that it would build an “ecological civilisation”. He added that less than a decade later, China has become the largest producer of wind and solar energy and continued to lead investments and innovations in green technologies and renewable energy.

Mr Lim stressed: “There is no Plan B, because there is no Planet B.

“Our responsibility, and our challenge, is – for the first time in human history – to make decisions that actually begin to reverse the negative impact of human habitation on our planet.”

  • Renewables
5 June 2019

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  • Philippines

MANILA Electric Co. (Meralco) on Tuesday said it is developing 1,000 megawatts of renewable energy projects in the next five to seven years.

In a statement, Meralco President and Chief Executive Officer Ray C. Espinosa said the expansion is in keeping with the company’s unwavering shift to renewable energy and the adoption of sustainable practices.

“Meralco is committed to developing large-scale renewable energy projects that can deliver competitive electricity for our customers, without any requirement for subsidy or support, while keeping environmental stewardship and sustainability as top priorities in our business,” Mr. Espinosa was quoted in a statement.

Subsidiary MGEN Renewable Energy, Inc. (MGreen) is working on several renewable energy projects, primarily solar, wind and run-of-river hydro.

The company aims to bring in additional supply to further the Philippines’ growth and help ensure availability of green and cost-competitive power supply in the coming years.

MGreen is a wholly owned subsidiary of Meralco PowerGen Corp.(MGen), which in turn is the power generation arm of Meralco.

“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 that the time is right to focus on building our green energy capacity and we intend to be a key player in this expanding sector,” MGen President and CEO Rogelio L. Singson said in the statement.

“MGen, through MGreen, will continue working on the realization of our project opportunities, and will work in partnership with established developers to maximize our growth potential,” he added.

The listed distribution utility saw its core net income rose 14% to P5.6 billion in the first quarter, despite a “modest” 2% growth in energy sales volume.

Meralco earlier said its reported net profit, which includes one-time gains, went up 7% to P5.7 billion during the January to March period.

The company attributed its first- quarter performance to: “higher distribution revenue underpinned by the 2% growth in energy sales volume; the positive contribution from Clark Electric Distribution Corporation (CEDC), following the settlement in 2018 of an unexpected claim by the Clark Development Corporation over the distribution revenues earned by CEDC from 2014 – 2018; and turnaround operating results of the company’s Retail Electricity Supply units.”

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls. — Janina C. Lim

  • Coal
5 June 2019

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  • Philippines

AN ENERGY think tank said it is seeking support from Congress to help contain the growth of coal-fired power plants in Southeast Asia, which it said make up the bulk of upcoming power projects.

In a statement Wednesday, the Center for Energy, Ecology and Development (CEED) said legislators should take part in the global effort to reduce coal consumption, citing its harmful effects on the environment.

“The vast majority of power projects in the pipeline are coal-fired, (which means) that (as) the rest of the world begins to become more conscious of the environment and the costs of fossil fuels, the Philippines is going in the other direction,” CEED Executive Director Gerry Arances was quoted as saying in the statement.

The group said dependence on coal as an energy source translates into harm not only to the environment, but also to consumers, as it results in a higher cost of electricity and negatively affects the health of communities in areas where coal-fired plants are located.

It said as of 2017, more than one third or 35.4% of the installed capacity of power plants in the Philippines remains coal-fired, while 18.3% are powered by fossil fuels.

Citing data from the World Energy Investment 2019 report of the International Energy Agency (IEA), CEED said the construction of coal-fired power plants has slowed worldwide, but the trend has not taken hold in developing countries in Asia.

In a statement accompanying the IEA report, it said the continued growth of coal plants in developing countries is commonly driven by the need to plug a “growing gap between soaring demand for power and a levelling off of expected generation from low-carbon investments (renewables and nuclear).”

“Without carbon capture technology or incentives for earlier retirements, coal power and the high CO2 emissions it produces would remain part of the global energy system for many years to come. At the same time, to meet sustainability goals, investment in energy efficiency would need to accelerate while spending on renewable power doubles by 2030,” IEA said.

Mr. Arances of CEED said, “The people who say (coal is cheap) only count the profits they make, not the costs to our foreign exchange reserves, the healthcare system as communities suffer from air pollution, and the high cost of electricity to end-consumers.” — Denise A. Valdez

  • Electricity/Power Grid
5 June 2019

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  • Lao PDR

Laos’ energy and mining sector is trying to cut electricity prices so that power is affordable for local residents and businesses.

Many consumers in Laos have been complaining about their escalating electricity bills. The tariff is high when compared to neighbouring countries, Minister of Energy and Mines Khammany Inthirath acknowledged at the first quarter meeting of the energy and mining sector held in Vientiane on Monday.

The two-day meeting over June 3-4 was attended by representatives of the energy and mining sector as well as investors and development partners. They took this opportunity to discuss the sector’s development plans and targets.

Topics up for discussion included past achievements of state projects to ensure regulation, quality, and reasonable pricing of electricity. Cost structures, safety inspections at plants and expansion of the electricity network, its stations and transmission lines were also discussed.

In the next three quarters of this year, the Ministry of Energy and Mines is expecting to complete 20 hydropower plants with an installed capacity of 2,707MW. This will produce around 33.874 billion kWh, worth about 16.575 trillion kip ($1.92 billion).

Electricity generated for export is expected to reach 25.625 billion kWh, which represents a dollar value of $1.451 billion.

Seven transmission lines are expected to be completed in the near future, including two that are 230kV. One line is 86.4km long and runs from Meuang Houn to Pak Ngeuy-Phaoudom. Another is 82km long and runs from Nam Xam to Hua Meuany.

Five 115kV transmission lines are currently under construction. They include a 90km stretch linking Non Hay to Paklai, a 50km line from Huayxai district to Pheung station and a 33km section from Nam Ngiep to Pakxan. A line from the Na Hay station to Dongphosy station is also being constructed.

The ministry is focusing on developing a renewable energy supply so that the country is less dependent on imports from other countries.

GDP in the energy and mining sector was 28.247 trillion kip last year. This was an increase of 11 per cent over 2017 when GDP was 16.8 per cent, Khammany told the meeting.

Laos currently has 63 operational hydropower plants with an installed capacity of 7,213MW. These plants are able to produce 37,035kWh of electricity per year, he said.

An additional 37 hydropower plants are under construction. The majority of these are expected to be completed by 2020-2021. When they are operational, Laos will have 100 hydropower plants which combined will have an installed capacity of 13,062MW.

It is expected that they will be able to produce 66.944 billion kWh per year and that this will be more than sufficient to meet the needs of the domestic market. The government also hopes to supply more electricity to its regional neighbours. VIENTIANE TIMES/ASIA NEWS NETWORK

  • Renewables
5 June 2019

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  • Cambodia

A $7.64 million loan from the Asian Development Bank (ADB) will see an additional 100-megawatt (MW) of solar power added to the Cambodia National Solar Park Project (CNSPP), pushing investment to more than $18 million.

In 2018 Cambodia's total electricity capacity -- generated and purchased -- totalled 2,650-MW, a YoY increase of 15.29 per cent.
In 2018 Cambodia’s total electricity capacity — generated and purchased — totalled 2,650-MW, a YoY increase of 15.29 per cent. Salient Features of Power Development in Kingdom of Cambodia until December 2018

Announced on May 24, the ADB finance comes on top of an $11 million loan and a $3 million grant from the Strategic Climate Fund (SCF) through its Scaling Up Renewable Energy Program (SUREP).

An additional $500,000 from the Republic of Korea will see capacity development of staff from Electricite du Cambodge (EDC), Cambodia’s national electricity utility, and the Electricity Authority of Cambodia (EAC), the national electricity regulator,  in solar photovoltaic technology and solar park planning.

With funds to be administered by the ADB, the solar park will first see the development of 60-MW of generating capacity, with funding to also help pay for infrastructure development, such as drainage, roads, and a transmission line connecting to the national grid.

To be constructed on a build-own-operate (BOO) basis, the ADB’s Office of Public–Private Partnership (PPP) is working as a transaction advisor to help ensure an open and competitive bidding process.

Cambodia’s Ministry of Industry, Mining and Energy (MIME) has reported receiving bids from 26 companies.

Located in the central Cambodian province of Kampong Chhnang, the solar park project is scheduled to commence production within 24 months of the successful contractor being announced.

Diversifying Cambodia’s energy mix

Pradeep Tharakan: Having reliable, sustainable, and affordable energy sources is crucial for the economic development of a rapidly expanding country such as Cambodia
Pradeep Tharakan: Having reliable, sustainable, and affordable energy sources is crucial for the economic development of a rapidly expanding country such as Cambodia IISD Reporting Services

Pradeep Tharakan, ADB principal climate change specialist, said the bank’s assistance will not only “help diversify Cambodia’s energy mix through solar power development, but also help the country meet its greenhouse gas emissions reductions target, as per the Paris climate agreement.

“Having reliable, sustainable, and affordable energy sources is crucial for the economic development of a rapidly expanding country such as Cambodia”, he added.

Cambodia’s electricity generating infrastructure was totally destroyed by the Khmer Rouge in the 1970s. The country has continued to increase electrical generating capacity, with total energy supply (not generating capacity) increasing by 1,174 per cent since 204.

According to the ADB some five million Cambodians still do not have access to electricity, reinforcing findings of a March 2018 report by The World Bank which found only 71.5 per cent of households have access to electricity from the national grid.

The World Bank report also found that 69.3 per cent of grid-connected households face frequent unpredictable power shortages, with more than 32 per cent having experienced appliance damage due to voltage fluctuation.

In 2018 Cambodia generated 2,207.50-MW of electricity and imported a further 442.50-MW. Prior to the drought this year it expected to generate 2,428.15-MW, an increase of 10 per cent. Demand, however, is forecast to increase by some 16 per cent.

In March rolling six-hour long daily (except Sunday and national holidays) power cuts were implemented nationwide after drought left the country’s hydro-electric power generators idle and the national grid short some 400-MW. In 2018 almost 48.5 per cent of the country’s generated electricity was produced by hydro.

  • Electricity/Power Grid
5 June 2019

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  • Cambodia

Prime Minister Hun Sen last week asked his Japanese counterpart for assistance to finance a high-voltage transmission network to carry electricity from Laos to Phnom Penh.

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

The Cambodian premier made the request during his visit to Japan to attend the International Conference on the Future of Asia, a four-day event held in Tokyo.

Speaking at a graduation ceremony in Phnom Penh on Monday, Mr Hun Sen said the high-voltage transmission network is needed to transfer power from Laos to Cambodia, and noted that Electricite du Cambodge (EDC) recently signed an agreement to purchase 200 MW from Laos.

..

“In my trip to Japan last week, I met with Japanese Prime Minister Shinzo Abe to ask for help to finance the transmission lines capable of transporting 500 kilowatts from the border with Laos to Phnom Penh, which is about 350 kilometres,” Mr Hun Sen said.

The energy will be produced at Laos’ Dan Sahong hydropower dam, near the border with Cambodia. The dam is scheduled to begin production in 2021.

After being hit by a power shortage this year, Cambodia has drafted a strategy to increase the power supply by increasing local production as well as imports.

Victor Jona, director general of energy, told Khmer Times on Tuesday that the high-voltage transmission network will replace the existing low-voltage one.

“Because demand for power is so high, we need to increase locally generated power as well as energy purchases from other countries. The demand for power will continue to increase in years to come, so we will need to boost imports,” Mr Jona said.

..

In March, the Royal Group of Cambodia partnered with China Southern Power Grid and China Huaneng Group to carry out a feasibility study on the high-voltage transmission network.

A recent report from the Ministry of Mines and Energy shows that the country’s electricity supply will rise by more than 16 percent in 2019, reaching 2,870 MW. 2,428 MW will be generated from local sources, while the rest will be imported from Thailand, Vietnam, and Laos.

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