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  • Renewables
27 April 2019

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  • Vietnam

The BIM Group started construction on the project in June 2018 and signed a power purchase agreement from the complex with Electricity of Vietnam (EVN) at the end of the year.

The complex features three plants, with respective capacities of 30MWp, 250MWp and 50MWp, and will be connected to national electric network this month.

Under the VND 7 trillion (US$301.3 million) project, more than 1 million solar panels were installed at the plants, together with other advanced technologies, expecting to contribute 600 million kWh to the national grid and benefit 200,000 households yearly.

Also, this morning, Deputy Prime Minister Vu Duc Dam attended the inauguration ceremony for the first phase of the country’s largest renewable energy project in Bac Phong commune, Thuan Thanh district.

Invested in by Trung Nam Group, the VND10 trillion (US$430.5) project includes solar and wind power plants with total design capacity of nearly 410 MW.

Speaking at the inauguration ceremonies, Deputy PM Vu Duc Dam applauded the efforts made by BIM Group and Trung Nam Group to compete the project on time, as scheduled in their commitments to the Ninh Thuan provincial authorities.

He called on the investors to work out more renewable energy projects in Ninh Thuan in order to turn the locality into a renewable energy centre of Vietnam.

  • Renewables
27 April 2019

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  • Indonesia

ndonesia is the largest energy consumer among all ASEAN member states, and with over 260 million people, energy demand in the archipelagic country is growing rapidly and is expected to rise by nearly four gigawatts (GW) to 66.6 GW this year. Although dependence on fossil fuels has increased in recent years, Indonesia has started adding more renewable energy to its energy mix.

According to the International Renewable Energy Agency (IRENA)’s 2017 report titled ‘Renewable Energy Prospects: Indonesia’, the country aims to convert 23 percent of its total energy supply to renewables by 2025, and 31 percent by 2050 as part of its plans to reduce greenhouse gas emissions  in line with the objectives of the Paris Agreement.

The conversion of solar energy into electricity is done either directly using photovoltaic (PV) technology or indirectly using thermal technology as well as concentrated solar power (CSP). CSP involves using mirrors or lenses to concentrate solar energy and convert it into heat. The heat is then used to create steam, which drives a turbine to generate electricity.

Huge potential

Solar energy in Indonesia has enormous potential. IRENA’s Roadmap for a Renewable Energy Future (REmap) programme released in 2016 identified a potential for 47 GW of installed capacity by 2030, which includes plans to use solar energy to provide electricity to nearly 1.1 million households in remote areas that do not have electricity.

According to IRENA, solar energy is expected to be used on a significant scale by 2030 in three ways: in utility-scale plants, on residential and commercial rooftops, and in off-grid settings to replace costly diesel-powered generation. It is assumed that this potential will be developed by 2030 through efforts by the government and state power company, Perusahaan Listrik Negara (PLN).

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Source: Lantau Group – Southeast Asian Solar: Market Outlook and Policy Overview (2017)

However, solar energy development in Indonesia is still sluggish and a report by the Institute for Energy Economics and Financial Analysis (IEEFA) in February found that Indonesia’s policies are getting in the way of a wider introduction of solar energy.

Titled ‘Indonesia’s Solar Policies: Designed to Fail?,’ the report stated that the country has lagged behind others in the region and calls for new regulations to spur investment.  “In spite of abundant solar resources, the government continues to institute policies that serve as barriers to scaling up commercial and residential adoption of solar,” said Elrika Hamdi, IEEFA energy finance analyst and author of the report.

The IEEFA report underlines that only 24 MW of solar, including solar rooftop units, are currently installed and dispatchable to the grid in Indonesia. Not only is PLN “plagued by an inflexible and high-cost coal program that is burdening the system with grid development challenges,” investors find it difficult to see the financial benefits of installing rooftop solar systems due to regulations.

Poor policies

Apart from the Build Own Operate Transfer (BOOT) policy that discourages long-term solar investments and creates bankability challenges for some developers, some of the other policy-related barriers for on-grid solar include requiring solar producers to use “local content,” especially solar panels that are significantly more expensive and of lesser quality than imports. Another policy which should be revisited is forcing solar producers to match the price of baseload coal-powered units that are heavily subsidised by the state.

While financing rarely represents a critical factor in the relatively low number of solar projects in Indonesia, IEEFA found that the lack of scalable projects of sufficient size and quality to meet bankability standards was a bigger headache.

Clustering several smaller projects into one large renewable energy investment deal that appeals to financial institutions would help address this problem, as will more investment in education to train the next generation of engineers and technicians who can manage and maintain the transition to a more sustainable energy sector.

“The opportunity is there, but political will and leadership will need to be mobilised in order to address the challenges. If not, Indonesians will face significant economic, environmental and social costs unless a new consensus can be reached about the future of the country’s power sector,” the report concluded.

  • Others
27 April 2019

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  • Malaysia

KUALA LUMPUR, April 27 — Primary Industries Minister Teresa Kok said the ministry is planning to produce biofuel using palm oil for the aviation industry, in a bid to boost palm oil sales and to reduce carbon emissions.

In a special media interview on Thursday, Kok said the move fulfils Malaysia’s commitment as a member of the International Civil Aviation Organisation (ICAO), to adopt and employ the Carbon Offsetting and Reduction Scheme for International Aviation (Corsia) to reduce carbon footprint.

She explained that under Corsia, airlines that emit carbon dioxide exceeding 10,000 tonnes yearly must report their carbon emission data for monitoring from January 2019 and this would become mandatory for all international airlines beginning 2027.

“This is an innovative approach and it’s consumer friendly.

“The usage of palm oil biofuel has been accepted by Corsia as one of the initiatives to reduce carbon emission,” Kok said during an interview to commemorate Pakatan Harapan’s (PH) first year as the federal government.

Addressing environmental concerns from the European Union (EU), Kok said that the government has also taken the lead in revamping the image of the palm oil sector here, which is often blamed for displacing wildlife and deforestation.

“We admit that there were perhaps some issues which were not right, which perhaps happened in the past, but now, we will continue efforts to ensure that the palm oil industry grows sustainably, and this is important to deflect the accusations made towards the industry,” she said.

Kok said her ministry had launched a special programme to plant one million trees in degraded areas in Sabah last month, which also included several nature conservation efforts.

One of the initiatives is to build a special wildlife corridor.

“To create a wildlife corridor for the Orangutans and elephants in Sungai Kinabatangan, and this would involve several companies which own palm oil plantations in areas in the vicinity.

“We will also document the activities under this project, to show the world, especially Europe, that Malaysia is practicing sustainable palm oil planting, by protecting forests and wild lives, as well as taking responsibility to rehabilitate degraded forests in nearby areas,” Kok added.

She said that the effort is also a corporate social responsibility for palm oil companies, and Malaysia in general to maintain Malaysia’s forested areas at 50 per cent.

  • Renewables
26 April 2019

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  • Thailand

Using the heat of the sun to produce electricity sounds like the stuff of science fiction, but in fact, research into solar technology began well over 100 years ago.

But what is relatively new is the idea of floating solar panels on water including lakes, reservoirs and even the sea!

It has two major benefits. First, solar panels cover vast areas of land so putting them on water saves valuable space needed for industry, agriculture or housing.

Second, the cooling effect of the water makes floating solar panels up to 16 percent more efficient and longer lasting.

Putting solar panels on water saves valuable land and is said to make them more efficient. /CGTN Photo

These two factors convinced Thailand’s state utility, the Electricity Generating Authority of Thailand, to draw up ambitious plans to construct 16 floating solar farms at nine hydropower reservoirs across the country – making a major contribution to future power needs.

A Memorandum of Understanding has been signed with a private Thai company, SCG Chemicals, to undertake research and development into the idea at its factory at Rayong, 170 kilometers from the capital Bangkok.

Research is being conducted by the Thai firm, SCG Chemicals. /CGTN Photo

“In Thailand, we are blessed with very fertile land for agriculture so for us it doesn’t make sense to use that land for a solar farm – and at the same time by having an agriculture industry we have a lot of water – reservoirs and small ponds – so for those kinds of surface water it would be a benefit to put a floating solar farm on top of it,” said Suracha Udomsak, SCG Chemicals’ Chief Technology Officer for Innovation, Technology and Emerging Business.

“We also have a strong commitment to the CO2 issue and developing more renewable energy is government policy.”

SCG Chief Technology Officer Suracha Udomsak. /CGTN Photo

The design team says constructing solar farms at existing hydro schemes will double electricity production from six to 12 hours a day; when conditions limit solar generation, hydropower can take over.

Thailand currently produces around 12 percent of its energy from renewable sources. But it plans to increase that to 37 percent, more than a third of its total capacity, within 20 years with floating solar making a substantial contribution.

Phase one will see Thailand building a 63-million-U.S.-dollar solar farm at the Sirindhorn Dam in the eastern province of Ubon Ratchathani, the full network is scheduled to be constructed over the next two decades.

The first floating solar farm is planned for the Sirindhorn Dam at Ubon Ratchathani in east Thailand. /CGTN Photo

Eight of the planned solar farms will each be bigger than the world’s current largest, at a collapsed coal mine in China.

Commenting on the scale of the project, Udomsak added: “I think it’s a bold move but it very much makes sense for a country like Thailand to embark on this journey.”

Some have raised concerns that solar panels could block sunlight and affect marine life but those backing the project say the technology is proven and panels cover too small a surface area to create problems.

Meanwhile, the island state of Singapore – where land is extremely limited – is developing a floating solar system in the sea off its coast.

Elsewhere in Asia: China, India, Japan and South Korea are among those enthusiastically pursuing floating solar technology.

  • Oil & Gas
26 April 2019

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  • Brunei Darussalam

Royal Dutch Shell has cover to take the moral high ground in Brunei. A corporate governance group, which counts big-name investors like Standard Life Aberdeen as members, wants the $260 billion energy giant to use its clout in the tiny Southeast Asian state to press for gay rights. Shell will be cautious of fallout elsewhere, but it has the leverage to start a meaningful dialogue.

The decision by Brunei to implement laws this month that could result in people being whipped or stoned to death for same-sex relations has been widely criticised outside its borders. Brunei already had Islamic criminal law, but the even harsher rules have prompted celebrities and even Deutsche Bank to boycott hotels like London’s The Dorchester, owned by the country’s state-owned investment agency.

The sultanate is unlikely to listen to George Clooney, Elton John or even the German bank. Those bans probably affect hotel employees more. But it will be hard to ignore Shell, a 50-50 partner in the joint venture that makes up 90 percent of Brunei’s oil and gas revenue, which in turn accounts for over half the GDP.

Shell boss Ben van Beurden, meanwhile, has grounds to use the request from Eumedion, however vague, as an overture. He can argue harsh laws make it tough to do business, restricting staff movements, for example, and clashing with United Nations-endorsed principles on human rights that the group signed up to.

Taking on a decision to apply sharia law will be delicate for a company operating in the Middle East. Activist shareholders may argue that there is little reason to focus only at gay rights at the expense of other assaults on human rights. Shell’s business in Brunei is also significant, but not company-defining.

Shareholders are increasingly pressing companies to right moral wrongs. Resources firms are already struggling with environmental concerns. A dialogue in Brunei, under cover of shareholder demands, is a step that gives Shell some credit, but a fix will not be swift. For companies throwing down demands, it is rarely effective unless they are prepared to pull their business and walk.

  • Renewables
26 April 2019

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  • Myanmar

Founded in 2016 as the Hydropower Developers’ Working Group, MHDA is a platform where hydropower firms and related professionals are able to support talks, influence policies, and improve environmental and social management processes and governance.

As its first initiative, the MHDA has partnered up with the Ministry of Electricity and Energy to produce standardised concessions and power purchase agreements for hydropower projects.

These agreements will help regulate the rights and obligations of both developers and the government, and ensure projects will meet the accountability requirements of international lenders and comply with environmental and social standards.

“We believe the MHDA is uniquely placed to make significant contributions to the sustainable development of Myanmar’s hydropower sector,” said Vikram Kumar, IFC’s country manager for Myanmar and Thailand.

Myanmar is South East Asia’s largest thriving market for electricity. It is estimated that currently, 60 percent of the population does not have access to power. The government’s National Electrification Plan aims to electrify 7.2 million households and provides universal energy access by 2030.

With the nation’s vast untapped hydrological resources of about 95 GW and nearly 100 hydropower projects operating, being built, or in the planning stages, the hydropower sector is crucial for Myanmar’s economic growth and social development.

An example of a hydropower project which became highly controversial is Myitsone Dam project. Talks will be made on whether to resume Myitsone during the second Belt and Road Forum (April 25-27) attended by State Counsellor Daw Aung San Suu Kyi. The hydropower project is one of seven hydropower plants planned for the upper reaches of the Ayeyarwady River as well as the Mali and N’Mai, at whose confluence the Ayeyarwady starts.

The 6000MW dam, backed by State Power Investment Corporation (SPIC, then known as China Power Investment Corporation), was supposed to send 90pc of its electricity to China’s Yunnan Province. Then-President U Thein Sein suspended work in building the US$3.6 billion dam in 2011, owing to widespread opposition within the country.

Hydropower has the capacity to aid Myanmar’s development but a balance must be struck between fulfilling the country’s energy demand and protecting local environment and communities, said Aung Zaw Naing, chair of MHDA’s executive committee. “To support that, we aim to promote health and safety standards, sustainable regulation, and strengthen compliance,” he said.

MHDA is currently looking for members, from local and foreign-owned hydropower developers, operators, EPC contractors, to vendors and industry professionals that are currently or planning to operate in Myanmar.

  • Others
26 April 2019

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  • Thailand

Thailand will host more than 70 major Asean meetings this year, with an additional 200 supporting meetings also on the cards.

Every single one of these requires large amounts of fuel to ferry participants from various capitals to Bangkok or other Thai cities, as well as electricity for the venues. It is no secret that energy efficiency at the meetings has ample room for improvement, from the use air-cooling systems to the vast piles of paper printed for attendees.

As such, Thailand’s plans for more environmentally friendly Asean meetings are applauded by many. Referred to as “green meetings”, these will highlight the commitment of the host country in six ways: Use of sustainable products, donation of used meeting equipment to local communities, reuse of conference materials, recycling of conference waste, reduction of plastic use, and reducing paper by using digital documents and electronic tools.

Singapore pioneered the use of digital and electronic tools last year with its “paperless” Asean meetings. It also developed a mobile app that contained the information and materials for each meeting. Singapore held 116 Asean meetings last year, each with an average of 50 to 100 participants. If every single participant had received a bundle of printed documents, an estimated two to four million paper sheets would have been used. Using the calculator from the Environmental Paper Network, two to four million sheets of paper equates to 250 to 500 trees being cut, or 300 to 600 million thermal units, which would generate 100 to 200 tonnes of CO2 emissions. This calculation demonstrates that shifting from conventional paper-based meetings to green meetings has a big impact on energy efficiency and CO2 emissions.

As well as chairing Asean, Thailand is also heading the Asean Energy Efficiency and Conservation Sub-sector Network in 2019. The network consists of representatives of Asean member states and is tasked with implementing programmes and activities in support of regional energy goals.

At the 33rd Asean Ministers on Energy Meeting in September 2015, member countries agreed to target a reduction in their collective energy intensity level (energy efficiency) of 20 per cent by 2020 and 30 per cent by 2025, based on 2005 levels. Last year, at the 36th Asean Energy Meeting held in Singapore, ministers announced good progress towards the target, with a 21.9 per cent reduction in energy intensity achieved in 2016, compared to 2005 levels, exceeding the Asean’s 2020 target.

That impressive progress is attributed to, among others, the success in strengthening energy management systems and certification programmes in Asean, and the enhancement of the Asean Standards Harmonisation Initiatives for Energy Efficiency platform, supported by the European Union.

Now, the progress in energy efficiency needs to be amplified with other collective efforts, which should start where the decisions are made – in Asean meetings. Thailand made a great decision in building on the example set by Singapore last year and initiating green meetings. These will help achieve regional energy efficiency targets, but they will also set an example for national policymakers as they partake in the global effort to meet pledges under the Paris Agreement.

  • Energy Cooperation
26 April 2019

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  • Cambodia

Prime Minister Hun Sen and his delegation left the Kingdom yesterday to attend the Belt and Road Forum in Beijing where a number of assistance agreements are expected to be signed.

Mr Hun Sen was invited to attend the second Belt and Road Forum by Chinese President Xi Jinping. He is accompanied by deputy prime minister Hor Namhong, Foreign Affairs Minister Prak Sokhonn, Finance Minister Aun Pornmoniroth, Transport Minister Sun Chanthol, Agriculture Minister Veng Sakhon, Commerce Minister Pan Sorasak, Health Minister Mam Bunheng, Tourism Minister Thong Khon, and members of the Chamber of Commerce of Cambodia.

Sry Thamrong, minister attached to the Prime Minister, said at Phnom Penh International Airport that Mr Hun Sen will also receive the title of Honorary Professor of International Relations at the Beijing University.

..

“The honorary title was offered after seeing his great leadership in diplomatic relations, as well as for solving a political crisis in order to restore a country torn from war,” Mr Thamrong said. “All that led to national unity and development today.”

“Samdech Techo Hun Sen is always actively supporting the Belt and Road Initiative that brought development to Cambodia,” he added. “We see this through the building of hydropower dams, roads, bridges, expressways and an airport in Siem Reap. All that we have received from Belt and Road cooperation.”

Mr Thamrong said that Mr Hun Sen will today attend the forum’s opening ceremony and deliver a speech.

Mr Hun Sen and the delegation are then expected to visit the Central Bank of China in the evening and sign agreements regarding the training of human resources and a loan concession as a partner of the BRI.

Today will end with a meeting with Li Yong, director general of the United Nations Industrial Development Organisation, and representatives of Unicef.

..

On Saturday, Mr Hun Sen will attend the Leader’s Roundtable Session before meeting with Wang Huning, a member of the Political Bureau of the Communist Party of China.

On Sunday, he will meet with Prime Minister Li Keqiang and sign “documents in order to strengthen cooperation between both countries”.

Mr Thamrong said Mr Hun Sen will then meet top Chinese business leaders who are investing in the Kingdom to propose funding for a railway company.

“He will meet with the vice chairman of Huawei, and will sign an agreement with the Ministry of Post and Telecommunication to focus on 5G technology,” he said.

Mr Thamrong added that Mr Hun Sen will meet representatives of Chinese business giant Xinqiang Goldwind Science and Technology in order to propose the creation of an industrial park to produce wind and solar-powered electricity.

..

“All these things are things we need because the world now needs to use clean energy from wind and the sun because this method has no effect on the environment,” he said.

Mr Thamrong noted that China Huaneng Group, a company that manages the Lower Sesan II Dam, will manage other hydropower dam projects.

Mr Hun Sen is expected to meet Mr Xi on Monday before returning to the Kingdom.

Kin Phea, director-general of the International Relations Institute at the Royal Academy of Cambodia, yesterday said the BRI has brought many investments.

“Cambodia expects that China will continue to develop the country’s infrastructure, which will help reduce the price of goods in Cambodia, strengthen its competitiveness and enhance the economy,” Mr Phea said.

On Tuesday, Mr Hun Sen told China’s Xinhua News that the BRI has been beneficial to the Kingdom’s development.

“The BRI has created a huge potential and opportunities for expanding and enhancing regional and international cooperation,” he said. “It is considered as the new engine of global economic growth.”

“I hope this forum will help us to continue to do what we have begun in the past in order to increase infrastructure connectivity, enhance stable development, strengthen cooperation and promote people-to-people exchange,” Mr Hun Sen added. “The Cambodian government will do its best to tap potential and benefits from the BRI to the max in order to contribute to achieving the Policy Agenda of Cambodia’s Rectangular Strategy.”

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