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  • Renewables
21 March 2019

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  • Philippines

Recognizing the Southern Luzon region’s vulnerability to natural disasters and the effects of climate change, a landmark Climate Challenge Summit was organized by the provincial government of Sorsogon and The Climate Reality Project–Philippines, which aimed to raise awareness among local communities on the importance of environmental conservation, sustainability and cleaner energy.

The event coincided with the first Geothermal Energy Day celebrated by the province, after Governor Robert Lee Rodrigueza recently signed Executive Order 001-2019 declaring every 5th of March as a special commemoration of the vital role that geothermal plays in the progress of the province.

The executive order recognizes geothermal energy as the “pioneer renewable energy resource in the Philippines” that can provide clean and reliable baseload power. Sorsogon is a province rich in geothermal resource and is host to the 140-megawatt Bacon-Manito (Bacman) Geothermal Project, which supplies power to the Luzon grid.

The climate summit, held at the Sorsogon State University, guested local government officials as well as stakeholders from various sectors of society in a dialogue and learning session on geothermal energy production.

We need to limit our temperature rise to two degrees Celsius, and that’s our best-case scenario. If we reach a five-degree increase, climate scientists say this will usher in the end of human civilization,” explained Atty. Allan Barcena, corporate social responsibility head of Energy Development Corporation (EDC).

“This realization led us to a decision to not invest in coal, and to provide nothing but clean, renewable and reliable power for our future. Geothermal energy is the holy grail of renewable energy technologies. Properly managed, it can supply clean and uninterrupted power—day or night, rain or shine,” he added.

The province of Sorsogon was also awarded the Allen S. Quimpo Climate Leadership for Governance Memorial Award during the 2018 Climate Reality Leadership Awards of The Climate Reality Project–Philippines due the province’s efforts to respond to the urgency of climate change. In 2017, the province declared itself off-limits to coal power through Provincial Resolution 323-2017, citing the hazardous effects of coal to both the environment and to its residents’ health.

  • Renewables
21 March 2019

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  • Myanmar

SolarHome, a solar energy startup that focusses on serving households in Myanmar, has announced that it has secured another US$1 million for equity from Trirec, an investment company that supports energy tech companies. Trirec is an existing investor in SolarHome, which makes this funding a follow-on financing that’s a part of SolarHome’s Series A round, as reported by Deal Street Asia.

Also Read: Indonesian logistics startup Kargo raises US$7.6M in seed funding round

Trirec was joined by Insitor Impact Asia, Beenext, and a group of Singapore-based family offices early last year when it invested US$4.2 million in SolarHome on a convertible note.

SolarHome was launched in 2017 seeded by fintech venture builder FORUM. With core operation in Myanmar, the company says that it has installed over 30,000 solar home systems in the country.

SolarHome is known for its Pay-As-You-Go (PAYG) solar installation for off-grid homes in Southeast Asia.

Just a few days prior to funding announcement, SolarHome announced the appointment of Greg Krasnov, the chairman and founder of SolarHome, and CEO of FORUM as the company’s CEO, succeeding Ted Martynov. It also appointed Geert-Jan ten Hoonte, a senior adviser, board member, and angel investor in SolarHome as president and COO of the company.

Just in December last year, SolarHome raised an additional US$10 million debt financing from investors including Japan-based cross border crowdfunding platform Trine.

  • Coal
21 March 2019

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  • Indonesia

Over the past year, the number of patients treated each day in the hospital unit where cardiologist Ade Imasanti Sapardan works in Indonesia’s capital has almost doubled to about 100.

Sapardan, who sees up to 150 people every week, cites worsening air pollution as a major reason for the rise in patients seeking treatment in the mega-city of Jakarta, home to 10 million people.

“People in Jakarta have bad pollution every day … everybody is not really breathing safe air,” Sapardan told the Thomson Reuters Foundation.

Half her patients suffer from symptoms linked to air pollution—like chest pains, coughing and breathlessness.

Nine out of 10 people breathe polluted air, according to the World Health Organisation (WHO), a problem that impacts more cities in Asia than anywhere else in the world.

Burning fossil fuels is a large contributor to air pollution, which kills about 7 million people prematurely each year. Green campaigners and energy experts say Asia’s growing demand for coal-fired power is one key cause of that pollution.

Coal demand outside Asia peaked in 1988 and has since fallen by a third.

During the same period, it rose 3.5-fold in Asia, now the world’s main driver of coal-power demand, according to a report published late last year by the Centre for Strategic and International Studies (CSIS) in Washington.

“Cities with the worst air pollution are all in Asia and a lot of it is to do with coal,” said Nikos Tsafos, a CSIS researcher.

“The region has such huge economic growth and potential, where the desire to bring electricity to people trumps all other concerns.”

An air quality report published by Greenpeace and IQAir AirVisual this month showed that the world’s 100 most polluted cities are largely in Asia—with India and China dominating.

Jakarta and Hanoi are the two most polluted cities in Southeast Asia, according to the report.

But while China has already curbed coal use to meet politically important smog targets, and India this year launched a nationwide anti-pollution programme, Tsafos said Southeast Asia was a “blind spot”.

Lawsuit

Like many Asian countries, Indonesia is experiencing a rise in urbanisation, population and economic growth and is scrambling to find ways to increase its power capacity.

Jakarta has about 10 coal power plants within a 100-km (60-mile) radius of the city, green campaigners said, with up to three more being planned.

Now 20 Jakarta residents are to file a lawsuit against Indonesian President Joko Widodo, backed by non-governmental organisations including environmental group Greenpeace.

They argue policymakers have not done enough to tackle air pollution in the capital and hope to force the government to move away from coal power and into renewables.

Sapardan’s medical expertise will be used in the action, which will also target the governors of Jakarta and its surrounding regions as well as the country’s health and forestry ministers.

They want a tightening of air standards, co-ordinated efforts to tackle air pollution, and recognition by the central government of the link between coal-power plants and air pollution, to force a change in power policy.

“The global trend is now to stay away from coal, but in Southeast Asia it has gone the other way, including in Indonesia,” said Tata Mustasya, climate and energy campaign coordinator at Greenpeace Southeast Asia.

“We still use coal and are expanding it to meet our power needs.”

A spokesman for Widodo, who will stand for re-election in national polls next month, was unable to provide an immediate comment, while the energy ministry did not respond to requests for comment.

Asia-Pacific consumed 75 per cent of the world’s coal in 2017, according to the BP Statistical Review of World Energy, up from 50 per cent 20 years ago.

An abundance of locally produced, cheap coal and a failure to promote alternative energy sources were key reasons for Asia bucking the global trend away from coal, energy experts said.

“We have cases in the Philippines where people are suffering respiratory diseases because of coal-power plants and coal ash from which they will never recover,” said Rayyan Hassan, executive director at the NGO Forum on ADB in Manila.

Cash flow

With many investment and development banks moving away from coal projects, financing Asia’s coal boom has been left to state-backed banks and bilateral agencies, energy experts and environmental campaigners said.

Japan ramping up its coal-power capacity after the Fukushima nuclear disaster had led to a boon in clean-coal technologies that were now being exported across Asia, said green activists, who also cited China’s Belt and Road Initiative.

“There is a narrative that says a lot of this is being enabled by the Belt and Road Initiative—that China is exporting coal technology and generation to the region,” said Tsafos.

But as renewable energy becomes more competitive, market forces will help move Asia away from coal, said Yongping Zhai, an energy expert at the Asian Development Bank (ADB) in Manila.

The ADB’s 2009 energy policy states that the bank can still consider coal projects in rare cases where the power provides energy access to the poor and uses advanced technologies.

Despite this, the ADB has no coal-power projects in the pipeline and the last coal-power project it was involved with was back in 2013, said Zhai.

Although the effects of air pollution in Asia would be felt for decades, Tsafos said calls for clean air in China had led to a reduction in coal consumption and this could now be mirrored in other parts of Asia.

“Local air pollution can be a really good agent of change,” he said. “That’s where pressure can pop up really quickly because people can see the damage but also politicians can show that they’ve delivered results.”

  • Oil & Gas
21 March 2019

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  • Vietnam

HANOI and SINGAPORE (Bloomberg) — Vietnam’s latest plans for $7.8 billion in gas-fired power projects may see the nation become one of the world’s newest liquefied natural gas importers and cut its coal use.

The Ninh Thuan provincial government on Wednesday said it met with Thailand’s Gulf Energy Development over plans to build four gas-fired plants, with total capacity of about 6,000 megawatts, as well as LNG import facilities, it said on its website Wednesday. Gulf Energy declined to comment.

“This LNG project will help replace some of the existing coal-fire power,” Hoang Quoc Vuong, Vietnam’s deputy minister of industry and trade, said by telephone. “We will definitely need to import LNG for these new plants.”

The Ca Na LNG project would bolster Vietnam’s entry into the ranks of LNG buyers, adding further demand to the fastest growing fossil fuel market, and give the cleaner-burning fuel an inroad into a nation that’s expected to drive regional coal use. A separate 3,200 megawatt project has also been proposed for Bac Lieu province, and analysts at Sanford C. Bernstein & Co. said in a report earlier this month that Vietnam is expected to join the LNG importing club in 2027 as its domestic gas reserves deplete.

To be sure, as electricity demand continues to grow at a fast pace and capacity is constrained, coal plants will run at high utilization rates to serve base load demand, according to Yun Ben Yap, a research analyst at Wood Mackenzie. That means new gas-fired power won’t displace existing or planned coal plants in Vietnam, he said.

Bright Spot

Vietnam has been seen as one of the world’s few bright spots for coal-fired power despite a broader global shift from the fuel. Coal will dominate its power sector over the next decade, making up 50.5% of generation by 2028, compared with 22.5% for gas, according to a Fitch Solutions report in February. Vietnam’s electricity demand increases by about 10% annually, according to the ministry of industry and trade.

“Increasing environmental consciousness and pollution concerns have led to a general pushback against coal,” Fitch Solutions analysts said in the report. “While Vietnam has committed to carbon emission reductions, there are limited practical alternatives for the government to meet the surge in power demand at present.”

Gulf Energy CEO Sarath Ratanavadi in December reiterated the company’s plans to invest about 150 billion baht ($4.7 billion) the next few years to build new power plants across Southeast Asia. He said at the time the company was in talks with partners for a hydro project in Laos, a gas-fired plant in Myanmar and renewable projects in Vietnam.

  • Energy Economy
21 March 2019

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  • Malaysia

KUALA LUMPUR: The government will tender out RM3.2 billion renewable energy (RE) and energy efficient projects this year.

Minister of Energy, Science, Technology, Environment and Climate Change (MESTECC) Yeo Bee Yin said the projects included retrofitting up to 50 government buildings devices so as to be more efficient in energy usage.

“The pilot project will involve about RM200 million,” Yeo told reporters at the Greenification of Malaysia dialogue session organised by the Malaysian Industrial Development Finance Bhd (MIDF) here today.

Also present at the media briefing were MIDF group managing director Datuk Charon Mokhzani, MIDF Amanah Investment Bhd deputy chief executive officer Datuk Dominic Silva and head of debts Julie Gwee.

Yeo said there would be an open tender of which companies are invited to submit their bids to retrofit existing government buidings with energy saving devices.

She also said the government had appointed the Securities Commission to form a green financing taskforce to find easier ways for the private sector to raise funds for green projects.

“The SC will submit a report to MESTECC at the end of July and we hope to get its recommendations included in next year’s budget.

“We want to see how we can incentivise more private financing for green projects either through government regularisation or mobilisation of funds,” Yeo said.

  • Oil & Gas
21 March 2019

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  • Thailand

London — Thailand’s PTT Exploration and Production Public Co Ltd (PTTEP) has signed a sale and purchase agreement to acquire the Malaysian oil and gas assets of Murphy Oil Corp. for $2.127 billion in an all-cash transaction, the US oil company said in a statement Thursday.

The deal aligns with PTTEP’s attempts to boost its reserves and production profile, as it has been facing declining oil and gas output levels. It has been building its war chest with strong cash flows and had been keen on producing assets within the region for some time.

“This transaction is the largest upstream transaction in Southeast Asia in the past five years, and Malaysia’s largest ever upstream transaction,” Jefferies, which was the sole financial adviser on the deal, said in an emailed statement.

It also said the transaction is PTTEP’s largest acquisition in Southeast Asia, and its first significant acquisition in Malaysia.

PTTEP will acquire Murphy Sabah Oil Co and Murphy Sarawak Oil Co, the Malaysian subsidiaries of Murphy Oil, the statement said.

PTTEP could not be immediately reached for comment due to out-of-office hours.

The deal amount, payable upon closing of the deal, is supplemented by a “$100 million bonus payment contingent upon certain future exploratory drilling results prior to October 2020,” the statement said.

The transaction is expected to close by the end of the second quarter.

For Murphy Oil, the sale to PTTEP means that it will exit Malaysia after monetizing its assets and reshuffle its oil portfolio in favor of opportunities in the US energy sector, including both deep water and onshore acreage.

“The company plans to continue its current oil-weighted strategy in both the Eagle Ford Shale and the Gulf of Mexico, while maintaining its focused exploration plan,” Murphy Oil said.

It said its board has authorized a $500 million share repurchase program, expects to record a book gain on the sale between $0.9 billion to $1.0 billion, and plans to repatriate nearly all the cash proceeds to the US.

Murphy Oil said as of year-end 2018, its net proved reserves were 816 million barrels of oil equivalent, of which 16% or 129 million boe were attributable to Malaysia. Of the 129 million boe of proved reserves, 70 million boe are characterized as proved undeveloped, it said.

  • Electricity/Power Grid
21 March 2019

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  • Cambodia

Representatives of Electricite Du Cambodge are planning a trip to Turkey to discuss bringing a floating power plant that will help the nation cope with the current energy crisis, Prime Minister Hun Sen said.

Speaking yesterday to a group of garment workers in Pursat province, the premier said bringing the floating facility would be an emergency measure to battle Cambodia’s power shortage.

Representatives from the Ministry of Mines and Energy, Electricity Authority of Cambodia, and EDC have been meeting with officials from the Turkish embassy since the beginning of the week to discuss the cost of bringing the floating plant as well as the tariff that will be charged.

..

EAC chairman Yim Viseth said, “The Turkish side requested to meet with us this week because they needed to know some information before making a decision on the floating power plant. We also need to know what tariff will be charged before we can make a decision.”

Mr Viseth did not reveal details regarding the cost of bringing and using the floating power plant.

EDC said earlier this week the country lacks 13 percent of the energy it needs, which has pushed the body to seek energy imports from neighboring countries.

On Monday, EDC announced it will buy 80 megawatts from Thailand and 10 MW from Laos.

Prime Minister Hun Sen on Saturday said the country is now facing an electricity shortage of about 400 MW, leading to power outages, and appealed to people, especially those in the business sector, to understand that this is because of an ongoing dry spell.

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“Climate change is not only affecting Cambodia but the whole region. We need water to produce electricity,” he said. “I urge people not to waste water as we will experience a long dry season which will last until June.”

Mr Hun Sen appealed to people to understand that there is a need for power cuts during this period and called on those who have generators to use them in their houses, hotels or workplaces to reduce the usage of electricity.

“A large amount of our electricity is produced through hydropower dams, but now there is a shortage of water so the dams can only generate a small amount of electricity,” he said. “We currently lack 400 MW, and we are seeking solutions to tackle this issue.”

EDC announced last week that a 60 MW solar power park in Kampong Speu province will start generating power next month, roughly four months ahead of schedule.

The solar farm will become fully operational in August this year, EDC said in a Facebook post.

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“The 60 MW solar farm in Tmat Pong, located near Phnom Penh, will generate 20 MW in mid-April and will run at full capacity in August,” EDC said.

“The project will be complete four months ahead of the date stipulated in the contract.”

EAC’s Mr Viseth said the plant will be brought online earlier, despite not being at full capacity, to combat power woes in the country.

“We are facing a shortage of power and the EDC has made this a priority issue, so the fact that we can get this project online ahead of schedule is pretty good,” Mr Viseth said.

Last year, Cambodia consumed 2,650 MW, a 15 percent increase compared to a year earlier. 442 MW were imported from Thailand, Vietnam, and Laos in 2018, according to the Ministry of Mine and Energy.

  • Renewables
21 March 2019

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  • Cambodia

itting in her bright and airy 17th floor office, Rithya Menon, Okra Smart Solar’s lead firmware engineer, checks the frequently updating data telling her everything about how well their community services are operating.

“I saw in the data that there was a problem with batteries going down each day. They should be recharging to full power,” she says, referring to Okra’s solar charged batteries running households living off the electrical grid.

Founded in Australia in 2016, Okra is a technology startup that builds IoT (internet of things) hardware and software which enables smart solar smart grids to provide clean, renewable and reliable power to rural off-grid communities.

Okra’s CEO and co-founder Afnan Hannan tells The Post about his vision for the project.

“I have been working on Okra for two and a half years and my mission is to make sure that every single person on this planet has access to energy 24/7 so that they can live modern, technology driven lifestyles.

“Using electricity to learn, to get jobs, to make money and to do all the things we take for granted to make our lives easier – even basic things like using refrigeration,” he says.

Hannan, who hails from the Australian capital Canberra, says that the organisation has developed an innovative power sharing system which minimises waste and maximises connectivity and efficiency.

“We’ve created an IoT controller and this device is installed in every house. The controllers can be connected from one to the next with a cable and lets houses connect together into smart-grids.”

“So if there are solar panels or batteries on any of the houses, the software redistributes extra power from one house to the next minimising wastage and making sure all houses have 24/7 power,” he says.

Okra’s first home featuring an off-grid controller was installed in March last year. Until then, the Okra team spent most of their time in Cambodian communities and with solar energy companies understanding household behaviour and conducting research and development before rolling out their product.

‘Plug & Play’

The difference between Okra and a standalone home solar system is that a standalone system consists of a PV panel and battery that provides limited power to one household only.

In most cases, the panel and battery assets are not sized appropriately so up to 50 per cent of solar generation is wasted as batteries become fully charged just after midday and are drained quickly at night time.

In contrast, Okra’s technology connects solar home systems into smart grids which enables energy sharing.

This means panels and battery sizing does not significantly affect a household’s ability to scale their energy consumption. To do this, households simply needs to “plug” into a neighbouring household on the network, hence “Plug & Play”.

“If we start with one, it still works but it’s a standalone. There is no way to share the power, but if you connect with next house, you can share the power from one to the others and you can also connect more and more houses, and the more you connect, the more they all share together,” says Hannan.

“It’s as simple as plugging a cable from any of the houses into another Okra controller. As soon as they’re connected together, Okra software activates and starts sharing power in the smart network.”

Okra smart grids are used to provide energy for lighting, mobile phone charging, cooking, fans, television and even refrigeration. In the future, Okra aims to make sure their products can meet demand for more power-intensive electronic devices such as air-conditioners, washing machines, e-vehicle charging and other modern appliances.

Right now, 101 households are connected to energy from Okra smart grids in the most rural areas of Takeo and Kampong Speu provinces. The locations in both provinces are far from existing grids and the communities had no power before they were connected to Okra.

“Our vision, is not to just make sure communities have access to energy, but to make sure our partners activate the communities to use energy for improved productivity in the future. So we want our partners to show communities how refrigeration, water pumping and even online education and mobile phone use can help them generate more money,” says Hannan.

Content image - Phnom Penh Post

Okra Smart Solar’s lead firmware engineer Rithya Menon (left) and Okra’s co-founder Afnan Hannan work at their office in Phnom Penh. leap tepitou

“We have taken the startup engineering approach. We’ve learned a lot from these 100 households and right now we’re optimising our product from these lessons and we’re also changing how we encourage our partners to roll the technology out – community activation is one of those lessons. Our next product iteration is going to be even more cost effective for the community and we’ve got plans to have our technology energise thousands or even tens of thousands of families within the next 18 months.”

99.9% uptime

He said Okra uses smart algorithms and machine learning distribution to ensure minimal power loss and maximum reliability and efficiency. The grids have 99.9 per cent uptime, even during the hot months, which over the past few weeks with power cuts scheduled in Phnom Penh, have surpassed the reliability of the Cambodian national power grid.

“People in remote communities still use diesel and kerosene that is very expensive. It costs from 10 to 100 times more to use Kerosene than it does to use electricity from Okra networks, and all Kerosene can do is provide poor lighting and fuel for cooking,” Hannan says.

Okra has a team of ten people that includes engineers from the US, Australia and England, as well as researchers from Russia and China and a Cambodian project manager.

“We are not saying that we are the best solution in every single area. If families need massive loads like air-conditioners there needs to be a different solution. But if all a household uses electricity for is to pump water and refrigeration in remote areas, Okra is a really good option.

“Our partners set up Okra in Kampong Spur and Takeo provinces in the regions where the electricity grid is far away, meaning people wouldn’t get connected for a while. In these areas, for sure, compared to grid extension or even standalone solar home systems, Okra is not just cheaper, but also more reliable,” says Hannan.

Okra’s partners who install the technology charge their customers a monthly fee, similar to an electricity bill. Families pay between $5 and $15 per month, with a deposit of between $20 and $30. However, houses are significantly reducing the amount they spend on diesel and kerosene, which sometimes amounts to $50 per month. A further upside is that now they also have 24/7 energy from clean solar power.

Hannan says Okra has grand visions for Cambodia, Southeast Asia and eventually the world.

“Energy as a service model from connected solar home systems is unique worldwide . . . Since we’ve rolled it out in Cambodia, we’ve received demand from countries around the world, including the Philippines, Indonesia and all the way to Kenya and Nigeria. But right now, we’re focused on Southeast Asia.

“The Cambodian government’s goal of providing nationwide electricity by 2023 is fantastic. But our plan is to work with authoritative bodies to find out which areas are hardest to reach so those communities can be setup with Okra smart networks and benefit from energy access today,” he says.

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