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Renewables

3.4GW Vietnamese giant clears survey hurdle

14 June 2019

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Vietnam

Enterprize Energy Group has secured a licence from the Vietnamese government to survey the site of the up to 3400MW Thang Long offshore wind farm off the coast of Vietnam.

The site is located at Ke Ga Cape off Binh Thuan province in the south of the south-east Asian country.

Surveys will cover a 2800 square kilometre area, of which 2000km squared is potentially for the turbines and 800km squared for the export cabling.

Enterprize said about 25% to 30% of the surveyed area will ultimately be used for the wind farm.

The surveys will collect wind data for 12 months 200 metres above sea level and the migration of seabirds and marine organisms.

Geophysical, geological and ocean surveys will also be carried out, with all the data feeding into planning, feasibility and environmental reports.

The first 600MW phase of Thang Long is scheduled to be grid connected in late 2022 or early 2023 and will comprise 64 turbines with individual capacity of about 9.5MW, the company said.

Four more 600MW stages are planned between 2023 to 2026, followed by a final 400MW phase.

Enterprize said the individual turbine size for the subsequent phases is expected to increase with the development of wind turbine technology.

The total investment for the whole project is expected to be $11.9bn, not including investment for connecting to the country’s national electricity system.

Oil & Gas

Energy expert seeks new oil and gas exploration for PHL

14 June 2019

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Philippines

THE Philippines may experience regular power outages unless the country beefs up its oil and gas reserves and push for energy independence in the next few years.

Based on studies done by experts, the Philippines’s oil and gas reserves are steadily declining, driving the country to greater reliance on imports. And if the situation does not change, a new version of the “dark ages” with long hours of brownouts every day won’t be too far-fetched.

GlobalData power industry analyst Harshavardhan Reddy Nagatham said, “The growing population is driving electricity consumption in the Philippines. As a result, new investment in capacity addition is urgently needed.”

The problems in the country’s oil and gas exploration initiatives only make the situation worse as investors have been taking a wait-and-see stance due to currently unresolved issues that pit the government auditors against the Department of Energy (DOE).

Although many investors have expressed interest in doing oil and gas exploration in the Philippines, very little headway has been achieved toward transforming this interest into concrete steps.

A report done by First Solutions Macro Research, a unit of the Fitch Group, stated the DOE sees the Philippines’s oil dependency is already at a hefty 48 percent. The report also said this is expected to increase in the coming years “due to a growing demand for refining feedstock, next to continued declines in oil and gas production.”

The Fitch report stated, “The Philippines remains in dire need of more oil and gas exploration as existing reserves decline and as its sole producing Malampaya gas-to-power project approaches the end of its production life.”

The Malampaya project accounts for 98 percent of domestic oil and gas production. However, the Malampaya field is expected to start producing less gas in five years’ time, although the consortium behind the project is confident of extending the life of the gas field. This underscores the need to extend the Malampaya license beyond 2024 to help beef up the country’s energy reserves.

Moreover, perceived pressure by government auditors on the Malampaya project has foreign investors wary of going the same route. The good news is that international arbiters have recently ruled in favor of the DOE/Malampaya consortium in its legal battle with the Commission on Audit (COA), which bodes well for the influx of more foreign investment on oil and gas explorations into the country.

Exacerbating the country’s oil and gas reserve decrease is the continued geo-political tension in the West Philippine Sea. According to the Fitch report, many of the country’s exploration prospects lie in areas straddling the disputed WPS. In fact, all exploration works in that area are suspended due to unresolved disputes with China. The problem is that the maritime dispute is not expected to be resolved anytime soon.

Although renewable energy is seen to grow in the next ten to 12 years and will substantially help beef up the country’s power generation capability, the growth is marginal and cannot be relied on fully, especially with a similar increase in the country’s energy demands.

Unless the government quickly addresses all these energy issues, particularly the continuous increase in energy demand and a sharp decline in oil and gas production, the Philippines may soon face an acute power shortage. And with concerns over climate change driving the world away from coal, the top contributor to climate change, all the more the Philippines needs to find other sources of energy—renewable, indigenous, and clean.

Coal

Vietnam’s May coal imports rise 57% on year to 3.86 mil mt

14 June 2019

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Vietnam

Vietnam imported 3.86 million mt of coal in May, comprising mainly thermal coal and coking coal, surging 57.1% from the same month in 2018, according to preliminary data released by Vietnam Customs.

The import value in the month was $380 million, up 51.4% year on year.
Indonesia was the biggest supplier of coal in the month with 1.39 million mt, up 8.2% year on year, followed by Australia, Russia and China.

Between January and May, Vietnam imported 17.20 million mt of coal, rising 103.8% from a year earlier, mostly from Indonesia, Australia and Russia. The import value in the period were worth $1.65 billion, up 66.5% from 2018.

Meanwhile, Vietnam exported 167,259 mt of coal, mostly anthracite coal, in May, down 39.2% year on year, mostly to Japan, Thailand and South Korea.

In the first five months, Vietnam exported 198,833 mt of coal, falling 80.25% year on year, largely to Japan, Thailand and South Korea. The export value in the period was $29.6 million, down 77.8% year on year.

The massive imports together with sharp declines in exports came as the state utility Vietnam Electricity or EVN said June 7 it will continue to buy as much as possible electricity from coal-fired power plants to feed rising electricity demand in the country.

Most of the country’s coal production is used domestically by the power, cement and other industrial sectors.

Bioenergy

Biodiesel price must be controlled, says Kok

14 June 2019

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Malaysia

GEORGE TOWN: The government has set up a committee – comprising four ministries – to come up with a mechanism to control the price of biodiesel containing 20% bio-content (B20) palm oil to boost domestic usage, says Primary Industries Minister Teresa Kok (pic).

The committee will comprise of her ministry, Finance, International Trade and Industry ministries and the Prime Minister’s Department, she said, adding that the matter was discussed at the Cabinet meeting on Wednesday.

Kok said there is a concern the price of palm biodiesel will increase if it is widely used.

“Therefore, we have to come up with a set of regulations after discussions with the related agencies,” she said after speaking at a seminar on Biodiesel (B7) implementation in the Industry Sector at a hotel here yesterday.

She also said the reduction in palm oil stock showed positive signs for what is in store for the industry.

“The stock was at 2.73 million tonnes in April and it was reduced to 2.45 million tonnes last month, a 10% reduction.

“We believe the price of palm oil will strengthen before the end of the year,” she said.

Kok also said Indonesia was using a B20 blend of biodiesel for transport and industrial sectors without any reports of engine failure.

“Malaysia, as the second largest producer of palm oil should expand its use as renewable energy like other palm oil producing countries.

“We are targeting for all petrol stations to supply B20 biodiesel,” she said.

Kok did not specify a specific time frame on when B20 biodiesel will be available at local petrol stations.

Also present at the seminar were Malaysian Palm Oil Board deputy director-general Dr Ahmad Parveez Ghulam Kadir, Penang Federation of Malaysian Manufacturers (FMM) chairman Datuk Dr Ooi Eng Hock and FMM energy committee chairman Steven Aroki.

Electricity/Power Grid

Kyaukphyu power deal expected ‘within weeks’: Supreme Group

13 June 2019

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Myanmar

YANGON — The consortium developing a 135-megawatt power project at Kyaukphyu in Rakhine State expects final approval of a power purchase agreement within weeks, a spokesperson says.

Myanmar’s Supreme Group and Chinese state-owned firm Sinohydro are jointly developing the US$180 million project, which will use gas from the Shwe field and generate power for distribution in Rakhine State.

The companies signed a letter of acknowledgement for the conclusion of the PPA negotiations with Minister for Electricity and Energy U Win Khaing on the sidelines of the Belt and Road Forum in Beijing on April 28.

However, the agreement still requires final government sign-off, said Supreme Group deputy chief executive officer U Htu Htu Aung.

“The negotiated PPA is in the process of final approval by the Myanmar government,” Htu Htu Aung said. “Approval is already in process and expected within the next few weeks.”

The PPA would be an important milestone for the National League for Democracy government, which has made electricity supply a top priority but struggled to agree on PPA terms with potential long-term investors.

As a result, Myanmar is facing major shortfalls in generating capacity in the coming years. Significant power shortages are expected during the hot season when demand peaks and production from hydropower dams declines, prompting the Ministry of Electricity and Energy to recently announce plans for an emergency power tender.

One major hurdle has been the government’s insistence in paying in kyat for the power generated, a scenario that is unattractive to most investors because the bulk of their costs are in US dollars. The government has also been unwilling to issue developers with sovereign guarantees, which would make it easier for them to attract financing.

Approval of the Kyaukphyu PPA would not represent a breakthrough on these issues, however. Htu Htu Aung said the consortium did not seek a sovereign guarantee for the project and has agreed to be paid in kyat, although this would be based on a US dollar tariff.

The lengthy negotiating period means the Kyaukphyu project is already well behind schedule. Under a “notice to proceed” that the Ministry of Electricity and Energy issued to the consortium in January 2018, it was scheduled for completion by May 2020.

Myanmar state media has described the Kyaukphyu project as “an important project for the Myanmar-China Economic Corridor”, a reference to the Myanmar portion of the Belt and Road Initiative.

Htu Htu Aung said the company was not involved in CMEC negotiations but that the inclusion of the project would be helpful. “Being part of BRI/CMEC can benefit the project in terms of support of both governments and more competitive financing due to bilateral recognition of the importance of the project at national strategic level,” he said.

Supreme also received a notice to proceed in January 2018 for a 1,390MW liquefied natural gas to power project at Mee Linn Gyaing in Ayeyarwady Region, in partnership with a different Chinese company, Zhefu Holdings.

Htu Htu Aung said negotiations for Kyaukphyu had been completed first because the $2.5 billion Mee Linn Gyaing project had a “much more complex PPA structure”. A key challenge is the requirement that the investors include the cost of importing the LNG in the PPA.

Renewables

Thai utility readies tender for 45MW floating solar on Sirindhorn Dam

13 June 2019

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Thailand

The Electricity Generating Authority of Thailand (EGAT) will soon invite bids for a 45MWac of floating solar project at the Sirindhorn Dam, which will be the national power giant’s first foray into hybrid floating PV and hydro projects.

The date of bid opening for the Sirindhorn Dam Hydro-Floating Solar Hybrid Pilot Project has been set for 20 August 2019. The project location is in Sirindhorn District, Ubon Ratchatani. Relevant tender documents will be available to purchase between 20 June and 26 July.

The dam was commissioned in 1971 to serve as a hydropower facility as well as to supply irrigation water.

In a release back in April, EGAT stated: “The Hydro-Floating Solar Hybrid Project combines hydropower from EGAT’s dams, which can generate a limited amount of power in some seasons, and solar power. When there is enough water, the dam can generate power to meet the system’s peak demand, but when there is a limited amount of water, the solar cells can generate power from sunlight during the day and use hydropower to support high power demand during nighttime. It can generate power continuously to support the system’s power demand. Other than increasing the security of the power system, it also helps manage water efficiently.”

The project aims are to lower costs, increase power system security, and stabilise grid integration of renewable power generation, including the use of energy storage.

A High Density Polyethylene (HDPE) floating device made from the same material as water pipes will be used, which EGAT claims will not impact the environment and aquatic animals.

As first reported by PV Tech back in November 2018, EGAT was planning to facilitate 1GW of hybrid floating solar-hydro projects across eight dams throughout the country. This was later increased to 16 solar farms with a combined capacity of more than 2.7GW in nine of its hydroelectric dam reservoirs by 2037.

Thepparat Theppitak, deputy governor, power plant development and renewable energy, EGAT, who announced the plans, said that the 45MWac Sirindhorn Dam capacity was expected to hit commercial operation date in December 2020. Meanwhile, a second 24MWac project at Ubol Ratana Dam is due to come into commercial operation in 2023.

Floating solar continues to proliferate in Southeast Asia and globally this week with news from Dubai, Portugal, Singapore and India.

Electricity/Power Grid

TNB: 85pc of complaints on electricity bill spike resolved

13 June 2019

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Malaysia

KUALA LUMPUR, June 13 — Tenaga Nasional Bhd (TNB) today updated that 85 per cent of the over 18,000 complaints from the utility’s consumers across the country on “sky high” electricity bills in April and May, had been resolved.

TNB president and chief executive officer Amir Hamzah Azizan said the utility would try to resolve the over 3,000 complaints still remaining as soon as possible.

“We saw progress in terms of resolution and are trying to focus to conclude the investigations (regarding the complaints),” he told reporters at TNB’s Aidilfitri open house here.

Asked about the penalty that would be imposed by the Energy Commission on TNB over the case, Amir said he had yet to scrutinise the matter and declined to say further.

“We must understand what is the real issue and how to monitor, that is my focus, nevertheless, what is important is that we resolve the problems faced consumers first.

“So far, based on the investigations that we conducted, if it was found that the overbilling was the fault of TNB, we will make the necessary refunds by re-crediting the amounts into the consumers accounts,” he added. — Bernama

Renewables

Shift to renewable energy and avert power crisis, gov’t urged

13 June 2019

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Philippines

MANILA, Philippines — The government should no longer tarry and transition now to renewable energy sources to avoid a looming power crisis, an energy and environment group said on Wednesday.

The Center for Energy, Ecology and Development (CEED) warned that the country’s overdependence on coal-fired power plants and on old and dirty technology may soon plunge many areas into darkness.

On Tuesday, the National Grid Corp. of the Philippines (NGCP) again placed the Luzon grid on yellow alert after the area’s power reserve — the difference between supply and demand — dipped below the required level.

Forced outages

Aside from rising consumer demand, unplanned or forced outages at power plants previously prompted the NGCP to raise alerts.

Gerry Arances, CEED executive director, said the recurring power shortages highlighted the low efficiency of old coal-fired power plants in meeting supply demands.

“Coal-fired power plants are not designed for ramping up and down… This will cause problems in efficiency,” he told the Inquirer in an interview.

The country relies heavily on fossil fuels, primarily coal, to supply power, he said.

Renewable Energy Act

This has remained the case despite the decade-old Renewable Energy Act, which calls for a shift to cleaner energy sources such as wind and solar, and the clamor from environment groups to ditch coal, a dirty and costly source of energy.

Advocates of renewable energy also say that the price of renewable energy sources has gone down in recent years, resulting in lower power bills.

According to Greenpeace Philippines, the latest power supply agreement between a solar company and a power distribution company placed the cost of solar at P2.99 per kilowatt hour, the cheapest in the market.

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