News Clipping Archive - Page 1162 of 1294

Bioenergy

Indonesia threatens to quit Paris climate deal over palm oil

27 March 2019

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Indonesia

JAKARTA, March 27 (Reuters) – A senior Indonesian minister warned on Wednesday Southeast Asia’s biggest economy could consider exiting the Paris climate deal if the European Union goes ahead with a plan to phase out palm oil in renewable transportation fuel.

Indonesia, the world’s biggest palm oil producer, has lashed out at the EU after the bloc classified palm oil as a risky crop that caused significant deforestation and ruled that its use in renewable fuel should stop by 2030.

Speaking at a palm oil forum, Luhut Pandjaitan, the coordinating minister overseeing maritime and natural resources, said the EU “should not underestimate Indonesia” and pledged the government would firmly defend its national interest.

Palm cultivation is often blamed for deforestation and destroying the habitat of endangered animals such as orangutans and Sumatran tigers.

Indonesia’s government, however, says palm requires far less land to produce oil compared to crops such as soy and rapeseed.

“If the U.S. and Brazil can leave the climate deal, we should consider that. Why not?” Pandjaitan said.

Under the Paris climate accord, Indonesia has committed to reducing its greenhouse gas emissions unconditionally by 29 percent and conditionally by 41 percent by 2030.

On Tuesday, the government said it plans to adopt sustainable economic policies which could help cut greenhouse gas emissions while boosting economic growth.

“The U.S. was not sanctioned at all by the EU (after leaving the Paris accord),” said Peter Gontha, special staff at Indonesia’s foreign ministry.

He also said Indonesia faced EU pressure over palm oil despite the government declaring a moratorium on permits for new estates.

Indonesia claims palm is being discriminated against by the EU to protect the market of European oils such as sunflower and rapeseed oils.

Indonesia has said it is preparing to challenge the EU and its Renewable Energy Directive (RED II) at the World Trade Organization as soon as it is implemented. The government is also examining its relations with EU members which support the act.

EU delegates for Indonesia and Brunei have said the bloc is complying with WTO rules and continues to be open for discussion with Indonesian government over the issue.

Earlier this week, and Indonesian Trade Ministry official urged palm companies to log legal action of their own over the issue at courts. (Reporting by Bernadette Christina Munthe, Fransiska Nangoy Editing by Ed Davies and Louise Heavens)

Oil & Gas

Bring natural gas price down quickly, glove makers tell Gas Malaysia, TNB

27 March 2019

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Malaysia

KUALA LUMPUR: Rubber glove manufacturers have called on Gas Malaysia Bhd and Tenaga National Bhd (TNB) to revise the natural gas tariff to be in line with the international prices of liquefied natural gas (LNG) and coal.

The Malaysian Rubber Glove Manufacturers Association (Margma) said it is expecting a substantial drop in natural gas price due to the sharp fall in the prices of LNG and coal in recent months.

It is also seeking the Energy Commission’s (EC) assistance to moderate energy costs to make the local rubber glove industry more competitive amid stiff competition from foreign competitors.

“It is obviously natural that the costs of manufacturing ought to come down in tandem with the sharp drop in prices of these two important sources of energy,” Margma president Denis Low Jau Foo said in a statement yesterday.

“The reduction in energy costs will definitely be a booster to rubber glove manufacturers who are now saddled with a rather high natural gas cost and the higher tariff of electricity usage for businesses,” he added.

The association pointed to the Asian LNG pricing, using Japan’s and South Korea’s futures, which have fallen by 60% to US$4.62 per MMBtu from its peak at US$11.81 per MMBtu in September last year.

The price of coal has also dropped by almost 25% to US$88.25 per tonne from US$118 per tonne as of July 2018.

“The industry is currently besieged by rising costs due to higher wages, an increase in natural gas prices over the months, a not so conducive electricity tariff for businesses and of course, the highly-competitive global business environment.

“While most of our member-companies are seasoned players and very matured, it is still a challenge for them and as such, it would be wise and clever for the EC to quickly step in to ensure that Malaysia continued to be the global leader in the supply of medical examination and surgical gloves to the world,” said Margma.

Margma expects the world to buy up to 300 billion pieces of rubber gloves this year, of which 65% is expected to come from Malaysia.

Last year, Margma member-companies exported 168.8 billion pieces of rubber gloves to the world worth RM17.74 billion. “We are targeting to export RM19.88 billion (worth of rubber gloves) this year,” it said.

Renewables

ENGIE targets solar-diesel-storage mini-grids in Myanmar with Mandalay Yoma

26 March 2019

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Myanmar

ENGIE has teamed up with a Myanmar-focused off-grid energy specialist to help spur rural electrification across the Southeast Asian country with mini-grids combining PV, diesel and battery storage.

The French energy giant has been increasingly active in the off-grid clean energy space in India and Africa since 2016, and this month has taken a minority stake in Mandalay Yoma Energy, to focus on Myanmar’s national programme for total electrification by 2030, in a country that has at least 27 million people without access to power.

Nathalie Risteau, director and co-founder of Mandalay Yoma, told PV Tech that the company is already providing power to 6,000 consumers, which is more than half of what the government achieved in the last two years.

“As a market leader we want to consolidate this leadership and move onto bigger numbers,” she added. “Out of 30,000 villages which are unelectrified in Myanmar we would be happy to do 1,000 in the next 3-5 years, and each village could have between 50-100kW of solar PV on average, with varying battery sizes.

Technology

Mandalay Yoma was founded in 2014 and has taken a market leading role in Myanmar’s PV mini-grid industry since then. All the firm’s projects, apart from the very first, combine solar, energy storage and diesel power backup. These tend to use PV modules from major Chinese supplier JinkoSolar and lithium-ion batteries from Alpha ESS.

All the Mandalay Yoma Energy solutions are designed in order to provide longevity and serve for long time periods and can also be connected to the national grid should transmission capability arrive at some point on the future. The company has also designed a containerised solution, which integrates the batteries the inverters for faster mini-grid deployment.

“Now we don’t have to build a special shed for housing the battery and inverters, the monitoring systems,” said Risteau. “We just bring our container on site and we do the foundation for the panels and the wiring but the whole process is accelerated.”

Last mile of the grid

Under the new partnership with ENGIE, Mandalay Yoma Energy will prioritise implementation of solar mini-grids particularly in villages that are far away from the National Grid, which come at the last phase of electrification and that are too expensive to be connected through the main grid as it is, said Risteau.

“There is significant potential for targeting these at first and in the future definitely it could be another step to look at those which have some sort of solar home systems (SHS) as an intermediary solution,” she added.

“This is what Myanmar needs at the moment because it has that opportunity to leapfrog towards the future and not make the same mistakes as other countries in the region, with more traditional energy mixes. Myanmar is very well positioned for that with an abundance of natural resources and mini-grids are definitely a very good answer to the current problems of lack of energy access in the rural areas.”

All the projects will be under the country’s DRD mini-grid programme that is aligned with the National Electrification Plan 2030, which is supported by US$400 million from the World Bank for the off-grid segment across both SHS and mini-grids.

“To electrify the whole country, it means that half a million households have to be electrified every year so the country has to run at a very fast pace,” said Risteau. “They are helped by different organisations by the World Bank, by GiZ and we are definitely confident that the goal can be achieved with the support of the strong market actors like ourselves and that’s why we are very keen on scaling up.”

The contract signing ceremony between Sol Partners, the Singapore-based holding company of Mandalay Yoma Energy, and GDF International SAS (GDFI), a member of the ENGIE Group, was held in Naypyidaw, in the presence of representatives from Myanmar’s Department of Rural Development, Ministry of Electricity and Energy, the French and European Embassies, the World Bank, GIZ and DICA.

Renewables

Indonesia says low-carbon plan could spur annual GDP growth

26 March 2019

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Indonesia

JAKARTA, March 26 (Reuters) – Indonesia plans to adopt a more sustainable economic development plan from 2020 that could deliver annual GDP growth of 5.6 to 6 percent over the next 25 years, its planning minister said on Tuesday.

The Low Carbon Development Initiative (LCDI) aims for more environmentally friendly growth in Southeast Asia’s biggest economy and the world’s third-largest greenhouse gas emitter after the United States and China, according to some estimates.

“We want high economic growth without sacrificing (the environment),” Planning Minister Bambang Brodjonegoro said in releasing a report on the initiative developed with the World Resources Institute, a global research group, and the United Kingdom, Norway and Germany.

Strict low-carbon policies would enable Indonesia to cut greenhouse gas emissions by 43 percent by 2030, the report said, surpassing its current target of a 41 percent reduction and deliver annual economic growth of 5.6 percent through 2024 and 6 percent through 2045.

The economy is currently growing at an annual rate of about 5 percent, but development can often lead to uncontrolled exploitation of natural resources causing environmental damage and pollution.

Without more sustainable policies, annual economic growth is expected to drop below 5 percent from 2020, the report said.

To achieve more sustainable targets, the government will adopt policies to increase agriculture productivity and prevent deforestation, Brodjonegoro said.

It also aimed to improve waste management and transition away from fossil-based energy in favour of renewables, he said.

If it made more sustainable use of natural resources and reduced its carbon intensity, Indonesia could generate 15.3 million better-paying jobs and save about 16 million hectares (39.5 million acres) of forest by 2045, the report said.

Low-carbon development policies will be included in the government’s next medium-term development plan for the 2020-2024 period, the report said. (Reporting by Maikel Jefriando Writing by Fransiska Nangoy Editing by Ed Davies and Darren Schuettler)

Others

ASEAN’s energy transition on the right track

26 March 2019

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ASEAN

Yesterday, the World Economic Forum (WEF) launched the fifth edition of their Energy Transition Index (ETI), ranking 115 economies on how well they are able to balance energy security and access with environmental sustainability and affordability. The report considered both, the current state of the countries’ energy systems as well as their readiness to adapt to future energy needs.

Six ASEAN countries came into focus based on their performance in the ETI: Thailand, Singapore, Malaysia, Indonesia, Vietnam and the Philippines.

In the case of Thailand, the country improved on all three dimensions of the energy triangle which is made up of security and access, environmental stability, and economic development and growth. Thailand also improved on transition readiness.

Despite being a net energy importer, Thailand scored high in the energy access and security dimension due to well-diversified sources of energy. Its scores, however, are challenged by a combination of high wholesale gas prices and energy subsidies as a percentage of its gross domestic product (GDP).

Singapore – with an ETI ranking of 13 – is the highest-ranking country within the ASEAN region. It comes as no surprise that this is driven by high scores in ‘transition readiness’ which the WEF puts down to many years of stable policies, strong institutions, a strong governance framework and transparency along with a culture of innovation and modern infrastructure which enables the energy transition.

Unfortunately, on performance, Singapore scores lower due to the structural challenge of being a net energy importer with high concentration of fossil fuels (particularly gas) which impacts its performance across the energy access and security dimension. Dominance of fossil fuels have also impacted the dimension of environmental sustainability, where Singapore has high carbon dioxide (CO2) emissions on per capita basis and a very small share of renewables.

Malaysia brings home the prize for the highest-ranking country in the emerging and developing Asian region. Its energy access and security scores are also among the top 15 out of the 115 countries analysed in the ETI. This is the result of its high electrification rate, low usage of solid fuels, diversity of its fuel mix and high quality of electricity supply.

Source: WEF Energy Transition Index

However, on the environmental front, both its carbon intensity and per capita carbon emissions are over 20 percent above the global average giving the country a lower score on this dimension. Malaysia also scores high in transition readiness due to strong regulations and political commitments, a culture of innovation and high scores on the human capital front. Yet, its readiness for transition is challenged by the current energy system structure with high energy demand (on per capita bases) and the high share of coal in its electricity fuel mix.

Indonesia is heavily impacted by the presence of energy subsidies. On the environmental front, the country does relatively well with low energy intensity. Its energy access and security dimension, however, is reduced primarily due to relatively high solid fuel use by the population. As for readiness, the country’s key challenges are in coverage of energy efficiency policies, perception of rule of law, investment freedom and high share of coal in the power generation mix.

Vietnam scores low in the environmental sustainability dimension resulting from a high level of air pollutants, high energy intensity and a carbon-intensive energy system. On the energy access and security dimension, it is challenged due to the relatively high percentage of solid fuels used by the population. Vietnam’s energy transition challenges include relatively weaker institutions, a low level of investment freedom, and a low quality of transportation infrastructure.

In the Philippines, the WEF noted that the high prices of electricity there is driven by taxation and a Feed-in tariff structure that was used to incentivise renewables.

The good news is that the high penetration of renewables has balanced out the presence of large coal-based power generation and positively impacted the diversity of power supply in the country. Unfortunately, the country continues to face challenges in the energy access and security dimension due to the low quality of power supply, a relatively low electrification rate and high percentage of solid fuels usage.

On the transition readiness front, the Philippines has made ambitious nationally determined contributions (NDC) pledges despite having a low carbon footprint with 70 percent targeted reduction in CO2 by 2030. However, its readiness score is challenged by negative perceptions around institutions and governance, low scores in access to credit indicators, weak transportation infrastructure and a high share of coal in its power generation fleet.

As fossil fuels deplete and newer technologies emerge that cater to renewable energy sources, energy transition is an inevitability. The future of energy transition is an especially important topic for ASEAN because urbanisation, industrialisation, and rising living standards continue to drive increases in energy demand. ASEAN, though still very much fossil-dependent, sees the importance of transitioning and is making an effort to do so.

Others

Thailand rises three places in WEF energy transition index

26 March 2019

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Thailand

Siri said that this year, Thailand was preparing to push legal amendments and get rid of obstacles to attain a higher WEF rank. Thailand was ranked 54th last year.

The improvement in ranking is a result of the WEF view that Thailand has energy stability without emitting too much greenhouse gas, he said, pointing out that Thailand has earned compliments for more use of renewable energy as the country’s main energy.

Thailand has a plan to increase the use of renewable energy to 35 per cent of total energy used in the next 20 years from the current 14 per cent, Siri said. Besides, the country is moving towards power production from solar rooftops on residential units, the so-called people-sector solar power for the first time.

Meanwhile, Thailand needs more development of energy human resources, particularly the 10,000-watt people-sector solar policy in the next 20 years and the future use of electric vehicles (EVs).

“Such ranking is based on Thailand’s Power Development Plan [PDP]. If PDP 2018 is included, it is believed the ranking would be higher, with its drive for clean energy, particularly people-sector solar,” Siri said.

Siri expressed confidence that the new government would continue the new round of petroleum (concessions) for more petroleum production capacity that can offer lower prices compared to imports.

Given the increase in gas production with cheaper prices, the country has energy stability. The Energy Ministry is preparing a new round of auctions of exploration and production of petroleum in the Gulf of Thailand within this June under production sharing contract (PSC), he said.

Panata Sangsriroujana, deputy governor of Electricity Generating Authority of Thailand (Egat), said the authority is awaiting the current or new Cabinet’s approval of the draft amendment to the Electricity Generating Authority of Thailand Act, which will allow Egat to proceed with fuel procurement. Earlier, Egat played a role in production and transmission system management.

Chaiwat Kovavisarach, chief executive officer of Bangchak Corporation, expressed no concerns about the energy policy as Thailand imports most of is energy whose prices follow global markets and that could affect consumers, while expecting the energy policy to follow the liberal-market mechanism.

Poonpat Leesombatpiboon, chief of the Energy Ministry’s International Energy Cooperation Division, said the higher rank came from the country’s energy stability and people’s access to energy, energy in response to the country’s economic expansion and development, and the energy system’s responsibility for the environment or reduction in greenhouse gas emissions and system initiative on shaping the future of energy.

After this, Thailand will require amendments of rules and regulations that hinder the country’s energy development, and preparation of energy human resources for more modern technologies, he said.

Wuttikorn Stithit, the vice president of PTT, said the company is joining hands to enhance the country’s energy stability through procurement of liquefied natural gas (LNG) and infrastructure development for LNG imports.

PTT is awaiting improvement of the ministry’s gas plan, which will revise the amount of LNG to be procured to match demand, set to rise to 53 per cent in the new PDP, he said.

Besides, an Asean study cooperation will be conducted for LNG terminals in the future and now Thailand, Singapore, Malaysia and Indonesia have already constructed LNG terminals.

Electricity/Power Grid

Price plea as generator costs soar

26 March 2019

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Cambodia

The government has urged vendors of electricity generators to ensure reasonable prices after public complaints flooded social media over soaring costs amidst a shortage of power in the Kingdom.

Government spokesman Phay Siphan said Cambodian people should help each other during a crisis.

Mr Siphan urged vendors to remain honest with the price of the generators, adding that the country was facing an electricity shortage as a result of extremely hot and dry weather as hydropower dams in the country are unable to produce energy.

“Please contribute and keep faithful behaviour toward each other with a culture of solidarity for Cambodian people, especially when it comes to hard times with electricity shortages,” he said. “I hope that in the recent difficult times of electricity shortages, we should understand each other and unite.”

Tann Huy Keang, owner of a generator shop in Russian market, yesterday said she would sell the generators at a similar price for which she bought them.

“I bought them at a high price so I must sell at a slightly higher one to get some income,” she said. “I allow buyers to bargain the price, so I will decide how much I could sell to them.”

Prime Minister Hun Sen last week called on the public and businesspeople to use generators as back-ups as the Electricity Authority of Cambodia could not generate enough electricity to meet needs.

From January to the end of February, power consumption increased to 31 million kWh per day due to a host of new investment projects in the capital.

Chhum Davith, a dental clinic owner, said he bought a 3.5-kilowatt electricity generator for $430 last week due to need for power in his business, noting that it was sold for just $200 last month.

“The price has doubled and I had no choice but to buy it to run my business,” he said. “Using a generator is not as convenient as the state electricity. So I hope the government would figure out way to solve the current problem.”

Last week, EDC said it had cut the supply of electricity in the Kingdom during the day to ensure supply at night.

Oil & Gas

Energy minister pledges Round 21 licences by mid-year

26 March 2019

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Thailand

Energy Minister Siri Jirapongphan (left) awards contracts to Mr Phongsthorn Thavisin for PTTEP’s E&P bids for the Erawan and Bongkot fields.

Round 21 of new licence issuance for offshore exploration and production (E&P) of petroleum resources is expected to open in June.

This new petroleum round will open for offshore resources only in the Gulf of Thailand, following the signing of contracts for the offshore Erawan and Bongkot gas fields yesterday, said Energy Minister Siri Jirapongphan.

Onshore locations, mainly covering northern, northeastern and central provinces have yet to be concluded due to legal obstacles for many public lands that have petroleum underground.

The Mineral Fuels Department was told to prepare a Round 21 plan to invite interested investors, said Mr Siri.

Round 21 has been delayed since October 2014 due to political instability and an economic slowdown.

Many advocates called for a delay and revision of the country’s petroleum laws from an E&P concession to a production-sharing contract.

In June 2017, two revised laws — the Petroleum Act and Petroleum Income Tax Act — were enacted. The government then opened bidding for the Erawan and Bongkot gas fields in 2018.

He said tentative conditions for Round 21 will be similar to the latest Erawan and Bongkot bids. More importantly, the round will include production-sharing contracts and 25% ownership for Thai state enterprises.

This move is also set to expand oil and gas reserves in the country as there have been no new E&P activities for over a decade.

There are many E&P offshore petroleum operators such as PTT Exploration and Production Plc (PTTEP), Chevron Thailand Exploration and Production Limited and Mubadala Petroleum among others.

In a related development, the Mineral Fuels Department on Monday awarded the production-sharing contract for Erawan gas field to PTTEP and MP G2 Thailand.

For the Erawan (G1/61), PTTEP has 60% ownership, while MP G2, Mubadala Petroleum’s subsidiary, owns the remainder.

The department awarded the contract of Bongkot (G2/61) for PTTEP, the sole bidder for this gas field.

Both offshore Erawan and Bongkot gas fields each have 10-year contracts, selling to the state at 116 baht per million British thermal unit, compared with almost 200 baht for the latest contracts.

“After two existing concessions expire in 2022 and 2023, the new prices will positively impact gas users for 10 years, with a combined net worth of 550 billion baht,” said Mr Siri.

The gas cost for power generation will be cut by 200 billion baht, reducing the fuel tariff by 15-20 satang per kilowatt-hour.

Many gas products from the Erawan and Bongkot fields will decrease in price for 10 years such as cooking gas (150 billion baht), natural gas (100 billion baht) and petrochemical (100 billion baht).

Phongsthorn Thavisin, PTTEP’s president and chief executive, said PTTEP is ready to begin the takeover transition for Erawan field from US-based Chevron.

PTTEP runs the Bongkot concession.

“PTTEP will set up a team to smooth synchronisation during 2021-22 as the Erawan concession approaches expiry in order to avoid gas production interruption,” said Mr Phongsthorn.

PTTEP allocated a massive budget of more than 1 trillion baht for two new 10-year contracts — 700 billion baht for Erawan and 400 billion for Bongkot.

Mr Phongsthorn said the gas sales price PTTEP offered the state has been estimated at an appropriate level (116 baht) and will allow PTTEP to gain margins from two gas fields.

The Erawan and Bongkot fields can trim production costs due to greater gas production volume in the future.

PTTEP forecasts the production cost of two fields will average US$30 per barrel of oil equivalent.

PTTEP plans to invite new strategic partners for a joint venture in two gas blocks in the future, said Mr Phongsthorn.

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