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  • Electricity/Power Grid
29 June 2019

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  • Singapore

SINGAPORE – Electricity tariffs are set to rise by an average of 6.4 per cent in the third quarter of this year, SP Group said on Saturday (June 29).

Gas tariffs for households are also set to increase by 1.6 per cent in the third quarter, City Gas said.

For the period from July 1 to Sept 30, electricity tariffs will increase by 1.43 cents per kilowatt hour (kwh) compared to the previous quarter.

Excluding the goods and services tax, this translates to a rise from 22.79 cents per kwh to 24.22 cents per kwh for households.

This is the highest it has been since the period from October to December 2014, when it was $25.28 before GST.

SP Group said in a statement that the increase is mainly due to the higher cost of natural gas for electricity generation.

This means that an average monthly bill for a family living in a four-room Housing Board flat will increase by $5.20.

SP Group said in its statement that it reviews the electricity tariffs quarterly based on guidelines set by the Energy Market Authority (EMA), and that the new tariffs have been approved by the electricity industry regulator.

Meanwhile, the increase in gas tariffs of 0.30 cent per kwh means that households will have to pay 19.10 cents per kwh, up from the 18.80 cents per kwh in the previous quarter.

City Gas, a trustee of City Gas Trust, said in a statement on Saturday that the increase was due to higher fuel costs compared with the previous quarter.

Gas tariffs are reviewed by City Gas based on guidelines set by EMA, which is also the gas industry regulator.

Since May 1, all households in Singapore can opt to purchase electricity from one of 13 retailers instead of SP Group under EMA’s Open Electricty Market (OEM) initiative.

The retailers generally offer prices that are about 20 per cent below SP Group’s prevailing tariff under various schemes.

Some retailers also claim that their plans are more environmentally-friendly as the power supplied is generated in part from solar energy. Many also offer perks and freebies to entice consumers to switch over.

A spokesman for Sembcorp Power said almost 60,000 households from all across Singapore have signed up with the retailer so far.

“As SP Group’s tariffs increase, this would make it even more compelling for households and businesses to want to switch to get great savings,” the spokesman added.

Professor Subodh Mhaisalkar, who is executive director of the Energy Research Institute at the Nanyang Technological University, said the electricity tariff does not directly affect retailers under the OEM scheme or their customers. He said the hike is not linked to the OEM initiative.

But he added that the price fluctuations in the global oil and gas market, which are driving the tariff hikes, have been more significant this year compared to the past four to five years, when the changes were more incremental.

Trade tensions and geopolitical issues may have contributed to the fluctuations, Prof Subodh said.

  • Electricity/Power Grid
28 June 2019

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  • Philippines

National Grid Corp. of the Philippines (NGCP) has secured regulators’ green light for its proposed P9.7-billion Taguig Extra High-Voltage (EHV) Substation Project, which is intended to accommodate supply inflows from any new power plants.

The Energy Regulatory Commission (ERC) approved NGCP’s application for permission to build the project that would serve as another drawdown substation to decongest the San Jose EHV Substation and provide higher level of reliability to the Luzon Grid system.

The San Jose EHV Substation is the chief merging point of bulk electricity supply coming from coal-fired power plants in Masinloc, Zambales, and Sual, Pangasinan, in the north of Metro Manila and well as power plants in Quezon in the south.

“The approval of the NGCP’s Taguig Extra High-Voltage (EHV) substation project will address the growing power demand and power import in Metro Manila,” ERC Chair Agnes Devanadera said in a statement.

“Additional capacities that will be injected into the transmission network by new power generators will soon be accommodated through this project, which will mean a sustainable and reliable supply of power” Devanadera said.

Apart from the decongestion of the San Jose EHV Substation, the 500-kilovolt Taguig EHV Substation will also ease traffic in the existing 230 kV single-circuit line from Quezon province to Muntinlupa City during emergency situations such as grid failure.

Taguig EHV will also  address the severe under voltage in the 230-kV substations within Metro Manila, caused by the single-circuit configuration and heavy loading condition of the Quezon-Doña Imelda-Paco-Muntinlupa 230 kV Transmission Line.

  • Energy Cooperation
  • Renewables
28 June 2019

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  • Philippines

MANILA, Philippines — The Philippines and France are looking into pursuing economic cooperation on renewable energy and green technology.

During the 8th Joint Economic Commission (JEC) meeting between the Philippines and France, both countries have committed to closely collaborate on sectors of mutual interest by encouraging more business visits, increased technical capacity building exchanges in emerging industries, and promote greater trade and investments.

“Efforts to discuss the possibility of economic cooperation with France on renewable energy and green technology were forwarded in the JEC,” Trade Secretary Ramon Lopez said during his speech at the JEC meeting’s summary of the discussion signing ceremony on Friday in Makati City.

The 8th installment of the JEC meeting between the Philippines and France focused on capacity building programs for animation services, green design, content development, satellite development, and data sharing, among others.

Lopez and French Secretary of State for Europe and Foreign Affairs Jean Baptiste Lemoyne likewise urged business leaders from both countries to frequently exchange business missions with their counterparts and participate in each other’s startup events and key trade expositions.

According to Lopez, “opportunities were identified for future engagements between French and Filipino companies, specifically in priority sectors for promotion including the critical aerospace and electronics industries of the manufacturing sector, which produce a sizable percentage of traded merchandise goods exchange between our two countries.”

He added that cooperation projects related to infrastructure and transportation, particularly in key urban centers in the Philippines, were also discussed during the meeting.

Lopez noted that the JEC meeting with France, which was established in 1994, is the “first and longest running JEC meeting of the Philippines with a European country.”

The total trade between the two countries grew to $2.4 billion in 2018. This figure is up by 52.43 percent from the $1.73 billion in 2017.

Philippine exports to France was up by 38.48 percent while French exports to the Philippines increased by 64.63 percent.

This total trade figure has placed France as the Philippines’ 15th largest trade partner.

France is also the country’s 16th largest country-source of products and the 12th largest export destination of the Philippines.

Representatives from both governments, Philippine business leaders, and a delegation from a French business confederation group, Mouvement de Enterprises de France-Internationale (MEDEF International) participated in the JEC meeting. (Editor: Eden Estopace)

  • Oil & Gas
28 June 2019

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  • Malaysia

KUALA LUMPUR (June 28): The Energy Commission (EC) said the Government has agreed to maintain the electricity tariff surcharge at 2.55 sen per kilowatt-hour (kWh) for non-domestic users, while no surcharge is imposed on domestic users.

Based on its check on the imbalance cost pass through (ICPT) mechanism for the period between Jan 1 and June 30, the commission said there was an increase in fuel costs and other generation costs, which had resulted in an ICPT surcharge of RM1.59 billion or 2.94 sen per kWh.

“One of the factors contributing to the higher costs in the ICPT mechanism for peninsular Malaysia was the rise in the average price of coal to US$99.235 per metric ton (MT) compared with the US$75 per MT that was assumed in the basic tariff during the second regulatory period of the IBR (incentive based regulation).

“The rise in coal prices is not within the Government’s control, as it is based on global market prices,” said the EC in a statement today.

At the same time, it said there were savings of RM336.7 million following the implementation of the IBR, which will be used to reduce the ICPT surcharge, along with an RM107.16 million allocation from Kumpulan Wang Industri Elektrik.

Therefore, the commission said that the remaining ICPT cost of RM1.15 billion will be passed through to non-domestic customers, maintaining the current ICPT surcharge at 2.55 sen per kWh for the period of July 1 until Dec 31.

  • Electricity/Power Grid
28 June 2019

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  • Lao PDR

The government has agreed to lower the cost of electricity in a move to create more incentives for boosting investment and productivity while improving the livelihoods of low-income earners.
The agreement was reached at a meeting of cabinet members, provincial governors and the Vientiane Mayor held in the capital this week.
The Minister of Energy and Mines, Dr Khammany Inthirath, informed a news conference on Thursday about the outcome of the new electricity rates approved by the government.

He said residential electricity price will drop by 50 percent while the electricity rates for industrial factories will decrease by 7 to 16 percent once the new electricity price scheme is enforced.
The minister was unable to confirm the exact date for the Electricite du Laos (EDL) to charge the new electricity rates as it requires months to install the new system. The Ministry of Energy and Mines proposed that households that consumed 50kwh per month will be charged a special price (only 350kip per kwh), but those who consume more than 50kwh will have to pay about 700kip per kwh. After that, the rates of electricity will increase annually by only 1 percent until 2025.
However, many cabinet members and provincial governors recommended the ministry to increase the special unit or figure from 50kwh to 150kwh so that more low-income earners can benefit from the new electricity rates.
Dr Khammany said his ministry will further study if the special rate offered for those who consume 150kwh per month will have any impact on the EDL business and the development of hydropower projects in Laos or not. Currently, 1.2 million households consume electricity in Laos, but it’s unclear how many families consume electricity lower than 50kwh or 150kwh and how many more low-income earners will benefit from the new electricity rates.
Dr Khammany said the new electricity rates will not only contribute to improve the livelihoods of local people but also ensure fair and reasonable electricity rates for people and business sectors.
Under the new electricity rates, electricity price for SMEs sector will reduce from 779kip per kwh to 761 kip per kwh. At the moment, industrial factory is charged at the rate of 714 kip per kwh. In the near future, factories that consume 100,000kwh will be charged at 684 kip per kwh, but for those consuming one million kwh will be charged at the rate of only 600 kip per kwh.
Currently the EDL has six electricity pricing slabs: 0-25 kilowatt hour equals to 348 kip per unit, 26-250 kilo-watt hour equals to 414 kip per unit, 151-300 kilowatt hour equals to 799 kip per unit, 301-400 kilowatt hour equals to 880 kip per unit, 401-500 kilowatt hour equals to 965 per unit and over 500 kilowatt hour equals to 999 kip per unit.
The weakness of this system is that if the figures of electricity consumed by households are not promptly taken by the EDL, the rates charged on those households could be higher.
This is unfair for local people and that’s why the government wants to revise the electricity rates for their benefit and the business sector.

  • Renewables
28 June 2019

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  • Myanmar

YANGON—An opening ceremony Thursday marked the completion of the first phase of electricity generation from Myanmar’s first solar power plant, which has been added to the national grid to supplement the country’s power needs.

Located in Minbu Township, in upper Myanmar’s Magwe Region, the Minbu Solar Power Plant was developed by Green Earth Power (Myanmar) under a build-operate-transfer (BOT) contract. It will have a total capacity of 170MW and produce 350 million kWh (kilowatt hours) per annum, electrifying about 210,000 households, according to a government announcement.

Each of the first three stages of construction will add 40MW of power generation capabilities while the fourth and final stage will add 50MW. With the first stage complete, the plant is now capable of producing up to 40MW of power.

State Counsellor Daw Aung San Suu Kyi attended the opening ceremony, where she said that, despite several of solar power’s drawbacks—its dependence on environmental conditions, requirement for large tracts of land and high cost of electricity and battery storage—it has many advantages, including low maintenance costs, reduced levels of environment-harming emissions and increased technological development for the country.

“While hydropower stations with long construction periods were under construction, solar power stations with short construction periods, like this one, will be constructed—after careful consideration—to provide electricity,” she said.

Currently, only one-third of the country’s 60 million people are connected to the electrical grid and cities are experiencing frequent blackouts.

The government has vowed to roll out electricity coverage to 50 percent of the population by December this year and 100 percent by 2030.

The World Bank predicts that, as Myanmar’s economy grows, electricity consumption will increase by 11 percent a year until 2030, meaning the government will need to triple its power generation. The bank also predicts that Myanmar’s electricity demand will reach 8.6 gigawatts (GW) by 2025 and 12.6 GW by 2030.

Current electricity production is just 3.6GW.

In order to meet the growing demand, the government will need to invest US$2 billion a year, the World Bank estimates.

  • Energy Cooperation
  • Renewables
27 June 2019

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  • Philippines

SAN MARCELINO, Philippines, June 27 (Xinhua) — Two Chinese-funded solar power stations were officially completed and handed over to Philippine authorities on Thursday to bring remote villagers electricity and opportunities.

The stations are the first fruit of the “Brighten Up” project, donated by State Grid Corporation of China (SGCC), is a charitable project presented by a Chinese firm in the Philippines.

Economic and commercial counselor of the Chinese Embassy Jiang Jianjun, Undersecretary of the Philippine Department of Energy (DOE) Benito Ranque, and administrator of Philippine National Electrification Administration (NEA) Edgardo Masongsong, among other guests, witnessed the handover of the stations during the ceremony held in New Baliwet, a remote village in San Marcelino, Zambales province.

“Achieving the goal of poverty alleviation by providing electricity and information, this project brings the fruits of modern civilization to local people and improve their standard of living and education,” Jiang said.

The SGCC also transferred the stations, located in Old and New Baliwet separately, to the Zambales II Electric Cooperative at the ceremony.

In return, children in Baliwet Elementary School performed dancing to express their gratitude at the ceremony.

“China is a true friend of the Philippines because you are giving happiness to the Filipinos, especially to the less-privileged people who live in the remote community,” Ranque said.

“The project provides sustainable development by the renewable resources like solar to the local people, as well as long-term benefits,” he said.

Due to its remoteness, no local power companies are willing to invest in Baliwet communities in the northern Philippines. The situation forced villagers to travel several kilometers to the town out of the mountain to charge their mobile phones.

“The benefit of this (Brighten Up) project is huge. It brought us electricity. Even the residents of the neighboring villagers moved here to be able to take advantage of the electricity,” said villager Dionesto Esteban.

“The project will also help us to be more productive and for sure it will open up more opportunities for us,” he added.

The power supply project, which broke the ground last January, uses solar micro-grid to provide centralized power with a power generation capacity of 76kW and a battery storage capacity of 432 kWh. It basically meets the daily needs of the villagers, according to SGCC Philippine office.

“Light is hope. The ‘Brighten Up’ project installs a solar panel system, capable of delivering power to some 1,000 residents including two elementary schools with over 100 students. The project is expected to lift the villagers out of poverty and a brighter future,” said Shan Shewu, director general of SGCC Philippine Office.

  • Oil & Gas
27 June 2019

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  • Malaysia

DUBAI, June 27 (Reuters) – Kuwait Foreign Petroleum Exploration Company (KUFPEC) said on Thursday it had made a significant gas discovery in block SK-410B in Malaysia.

The block is located in shallow waters, nearly 90 km (56 miles) off the coast of Sarawak, it said in a statement.

The discovery was made by KUFPEC Malaysia, a wholly-owned subsidiary of the Kuwaiti firm, which holds a 42.5% working interest under a production sharing contract with PETRONAS Carigali Sdn. Bhd. and PTTEP HK Offshore Ltd. (Reporting by Asma Alsharif; Writing by Nafisa Eltahir; Editing by Edmund Blair)

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