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Coal

Legislators urged to reduce Philippines’ dependence on coal-fired power plants

5 June 2019

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Philippines

AN ENERGY think tank said it is seeking support from Congress to help contain the growth of coal-fired power plants in Southeast Asia, which it said make up the bulk of upcoming power projects.

In a statement Wednesday, the Center for Energy, Ecology and Development (CEED) said legislators should take part in the global effort to reduce coal consumption, citing its harmful effects on the environment.

“The vast majority of power projects in the pipeline are coal-fired, (which means) that (as) the rest of the world begins to become more conscious of the environment and the costs of fossil fuels, the Philippines is going in the other direction,” CEED Executive Director Gerry Arances was quoted as saying in the statement.

The group said dependence on coal as an energy source translates into harm not only to the environment, but also to consumers, as it results in a higher cost of electricity and negatively affects the health of communities in areas where coal-fired plants are located.

It said as of 2017, more than one third or 35.4% of the installed capacity of power plants in the Philippines remains coal-fired, while 18.3% are powered by fossil fuels.

Citing data from the World Energy Investment 2019 report of the International Energy Agency (IEA), CEED said the construction of coal-fired power plants has slowed worldwide, but the trend has not taken hold in developing countries in Asia.

In a statement accompanying the IEA report, it said the continued growth of coal plants in developing countries is commonly driven by the need to plug a “growing gap between soaring demand for power and a levelling off of expected generation from low-carbon investments (renewables and nuclear).”

“Without carbon capture technology or incentives for earlier retirements, coal power and the high CO2 emissions it produces would remain part of the global energy system for many years to come. At the same time, to meet sustainability goals, investment in energy efficiency would need to accelerate while spending on renewable power doubles by 2030,” IEA said.

Mr. Arances of CEED said, “The people who say (coal is cheap) only count the profits they make, not the costs to our foreign exchange reserves, the healthcare system as communities suffer from air pollution, and the high cost of electricity to end-consumers.” — Denise A. Valdez

Electricity/Power Grid

Ministry aiming for lower electricity prices in Laos

5 June 2019

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Lao PDR

Laos’ energy and mining sector is trying to cut electricity prices so that power is affordable for local residents and businesses.

Many consumers in Laos have been complaining about their escalating electricity bills. The tariff is high when compared to neighbouring countries, Minister of Energy and Mines Khammany Inthirath acknowledged at the first quarter meeting of the energy and mining sector held in Vientiane on Monday.

The two-day meeting over June 3-4 was attended by representatives of the energy and mining sector as well as investors and development partners. They took this opportunity to discuss the sector’s development plans and targets.

Topics up for discussion included past achievements of state projects to ensure regulation, quality, and reasonable pricing of electricity. Cost structures, safety inspections at plants and expansion of the electricity network, its stations and transmission lines were also discussed.

In the next three quarters of this year, the Ministry of Energy and Mines is expecting to complete 20 hydropower plants with an installed capacity of 2,707MW. This will produce around 33.874 billion kWh, worth about 16.575 trillion kip ($1.92 billion).

Electricity generated for export is expected to reach 25.625 billion kWh, which represents a dollar value of $1.451 billion.

Seven transmission lines are expected to be completed in the near future, including two that are 230kV. One line is 86.4km long and runs from Meuang Houn to Pak Ngeuy-Phaoudom. Another is 82km long and runs from Nam Xam to Hua Meuany.

Five 115kV transmission lines are currently under construction. They include a 90km stretch linking Non Hay to Paklai, a 50km line from Huayxai district to Pheung station and a 33km section from Nam Ngiep to Pakxan. A line from the Na Hay station to Dongphosy station is also being constructed.

The ministry is focusing on developing a renewable energy supply so that the country is less dependent on imports from other countries.

GDP in the energy and mining sector was 28.247 trillion kip last year. This was an increase of 11 per cent over 2017 when GDP was 16.8 per cent, Khammany told the meeting.

Laos currently has 63 operational hydropower plants with an installed capacity of 7,213MW. These plants are able to produce 37,035kWh of electricity per year, he said.

An additional 37 hydropower plants are under construction. The majority of these are expected to be completed by 2020-2021. When they are operational, Laos will have 100 hydropower plants which combined will have an installed capacity of 13,062MW.

It is expected that they will be able to produce 66.944 billion kWh per year and that this will be more than sufficient to meet the needs of the domestic market. The government also hopes to supply more electricity to its regional neighbours. VIENTIANE TIMES/ASIA NEWS NETWORK

Renewables

ADB boosts Cambodia’s energy with $7.6mln for solar park

5 June 2019

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Cambodia

A $7.64 million loan from the Asian Development Bank (ADB) will see an additional 100-megawatt (MW) of solar power added to the Cambodia National Solar Park Project (CNSPP), pushing investment to more than $18 million.

In 2018 Cambodia's total electricity capacity -- generated and purchased -- totalled 2,650-MW, a YoY increase of 15.29 per cent. — In 2018 Cambodia’s total electricity capacity — generated and purchased — totalled 2,650-MW, a YoY increase of 15.29 per cent. Salient Features of Power Development in Kingdom of Cambodia until December 2018

Announced on May 24, the ADB finance comes on top of an $11 million loan and a $3 million grant from the Strategic Climate Fund (SCF) through its Scaling Up Renewable Energy Program (SUREP).

An additional $500,000 from the Republic of Korea will see capacity development of staff from Electricite du Cambodge (EDC), Cambodia’s national electricity utility, and the Electricity Authority of Cambodia (EAC), the national electricity regulator, in solar photovoltaic technology and solar park planning.

With funds to be administered by the ADB, the solar park will first see the development of 60-MW of generating capacity, with funding to also help pay for infrastructure development, such as drainage, roads, and a transmission line connecting to the national grid.

To be constructed on a build-own-operate (BOO) basis, the ADB’s Office of Public–Private Partnership (PPP) is working as a transaction advisor to help ensure an open and competitive bidding process.

Cambodia’s Ministry of Industry, Mining and Energy (MIME) has reported receiving bids from 26 companies.

Located in the central Cambodian province of Kampong Chhnang, the solar park project is scheduled to commence production within 24 months of the successful contractor being announced.

Diversifying Cambodia’s energy mix

Pradeep Tharakan: Having reliable, sustainable, and affordable energy sources is crucial for the economic development of a rapidly expanding country such as Cambodia IISD Reporting Services

Pradeep Tharakan, ADB principal climate change specialist, said the bank’s assistance will not only “help diversify Cambodia’s energy mix through solar power development, but also help the country meet its greenhouse gas emissions reductions target, as per the Paris climate agreement.

“Having reliable, sustainable, and affordable energy sources is crucial for the economic development of a rapidly expanding country such as Cambodia”, he added.

Cambodia’s electricity generating infrastructure was totally destroyed by the Khmer Rouge in the 1970s. The country has continued to increase electrical generating capacity, with total energy supply (not generating capacity) increasing by 1,174 per cent since 204.

According to the ADB some five million Cambodians still do not have access to electricity, reinforcing findings of a March 2018 report by The World Bank which found only 71.5 per cent of households have access to electricity from the national grid.

The World Bank report also found that 69.3 per cent of grid-connected households face frequent unpredictable power shortages, with more than 32 per cent having experienced appliance damage due to voltage fluctuation.

In 2018 Cambodia generated 2,207.50-MW of electricity and imported a further 442.50-MW. Prior to the drought this year it expected to generate 2,428.15-MW, an increase of 10 per cent. Demand, however, is forecast to increase by some 16 per cent.

In March rolling six-hour long daily (except Sunday and national holidays) power cuts were implemented nationwide after drought left the country’s hydro-electric power generators idle and the national grid short some 400-MW. In 2018 almost 48.5 per cent of the country’s generated electricity was produced by hydro.

Electricity/Power Grid

PM asks Japan for help to build power lines

5 June 2019

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Cambodia

Prime Minister Hun Sen last week asked his Japanese counterpart for assistance to finance a high-voltage transmission network to carry electricity from Laos to Phnom Penh.

For in depth analysis of Cambodian Business, visit Capital Cambodia
.

The Cambodian premier made the request during his visit to Japan to attend the International Conference on the Future of Asia, a four-day event held in Tokyo.

Speaking at a graduation ceremony in Phnom Penh on Monday, Mr Hun Sen said the high-voltage transmission network is needed to transfer power from Laos to Cambodia, and noted that Electricite du Cambodge (EDC) recently signed an agreement to purchase 200 MW from Laos.

“In my trip to Japan last week, I met with Japanese Prime Minister Shinzo Abe to ask for help to finance the transmission lines capable of transporting 500 kilowatts from the border with Laos to Phnom Penh, which is about 350 kilometres,” Mr Hun Sen said.

The energy will be produced at Laos’ Dan Sahong hydropower dam, near the border with Cambodia. The dam is scheduled to begin production in 2021.

After being hit by a power shortage this year, Cambodia has drafted a strategy to increase the power supply by increasing local production as well as imports.

Victor Jona, director general of energy, told Khmer Times on Tuesday that the high-voltage transmission network will replace the existing low-voltage one.

“Because demand for power is so high, we need to increase locally generated power as well as energy purchases from other countries. The demand for power will continue to increase in years to come, so we will need to boost imports,” Mr Jona said.

In March, the Royal Group of Cambodia partnered with China Southern Power Grid and China Huaneng Group to carry out a feasibility study on the high-voltage transmission network.

A recent report from the Ministry of Mines and Energy shows that the country’s electricity supply will rise by more than 16 percent in 2019, reaching 2,870 MW. 2,428 MW will be generated from local sources, while the rest will be imported from Thailand, Vietnam, and Laos.

Renewables

ToR expected soon for 45-MW Thai floating solar tender – report

5 June 2019

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Thailand

June 5 (Renewables Now) – The Electricity Generating Authority of Thailand (EGAT) is to release in mid-June the terms of reference (ToR) for a tender that will award a 45-MW solar project at a local hydropower plant (HPP), the Bangkok Post said today.

The Sirindhorn dam in Ubon Ratchathani Province has been selected as the location of the first of many floating solar projects in Thailand, to be built under the Hydro-Floating Solar Hybrid Project. The upcoming tender to award the engineering, procurement and construction (EPC) contract for the 45-MW photovoltaic (PV) plant will be open to international bidders. It seeks the best solar technology for the project, Energy Minister Siri Jirapongphan was cited as saying.

EGAT aims to have the pilot floating solar farm operational by December 2020. It says on its website such hybrid projects ensure a lower cost of green power through the use of the existing transmission system at Thai dams and the abundant space. Combining hydro and solar power also results in reduced intermittency of renewables generation, and at no cost for the community and the environment.

Thailand aims to build solar farms at nine hydroelectric dam reservoirs by 2037.

Others

Bloomberg downbeat on Asean EVs

5 June 2019

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Thailand

Battery EVs were available for booking at the Thailand Motor Show, but BNEF said personal EVs are not yet affordable in Southeast Asia. (Photo by Wichan Charoenkiatpakul)

Bloomberg New Energy Finance (BNEF) forecasts prices of electric vehicles (EVs) such as cars, motorcycles and commercial vehicles remain unaffordable for individual buyers in Southeast Asia, including Thailand.

Countries in this region are emerging markets, and each should start with adoption of electric two-wheelers, three-wheelers and public transport vehicles, said Justin Wu, head of Asia-Pacific for BNEF.

“EV prices in Southeast Asia are more expensive than in other developed markets like the US, Europe, Australia and China,” Mr Wu said. “China has yet to develop fully, but prices for battery EVs there are very cheap for motorists.”

He said countries in Southeast Asia have sales of roughly 12 million two-wheelers annually, led by Indonesia, Vietnam, Thailand, the Philippines and Malaysia.

For Thailand, BNEF expects two-wheelers to lead the EV market going forward, as electric motorbikes have the most registrations for EVs at the Land Transport Department. As of 2017, the accumulated registrations of all EVs at the department stood at 1,800 units, mainly electric motorbikes, according to figures compiled by BNEF.

“As a result, two trends will develop in Southeast Asia. The first is new operators of EV taxi fleets such as cars and motorcycles, and the second is electric buses for public transport,” said Mr Wu.

He said EVs are worth the price tag in Asean if a vehicle is driven 100 kilometres daily and is used for 10 years.

“But individual buyers often cannot drive EVs such a long distance, so it does not make sense for them to buy such vehicles,” said Mr Wu.

“Once each Asean country can adopt EVs for public transport and spread charging stations across the country, the cost of EVs will drop with the start of local manufacturing.”

He said the government’s EV support policy did not factor in Thailand’s EV forecast.

For the global EV outlook, BNEF projects EVs are on track to take up 57% of the global passenger car sales by 2040, while electric buses are on target to hold 81% of municipal bus sales by the same year.

BNEF said EVs should comprise 56% of light commercial vehicle sales in Europe, the US and China within the next two decades, plus 31% of the medium commercial market.

Heavy trucks will prove the hardest segment to make electric, with sales limited to 19% in 2040. They will mostly be used for shorter distance applications. However, conventional heavy trucks on long-haul routes will also face competition from alternatives using natural gas and hydrogen fuel cells, said Mr Wu.

Shared mobility services such as ride-hailing and car-sharing are set to rise to 19% by 2040, up from less than 5% now.

Renewables

Thai investors beam capital into solar power projects in Vietnam

5 June 2019

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Vietnam

Hanoi (VNA) – Thai firms are stepping up investment in renewable energy projects in Vietnam, particularly solar power, through merger and acquisition (M&A) deals.

B.Grimm Power Pcl has registered to invest 216.7 million USD in the Hoa Hoi solar power project in the central province of Phu Yen, the fourth largest foreign-invested project in Vietnam so far this year.

Vo Cao Phi, Director of the provincial Department of Planning and Investment, said this will transform the share structure of B.Grimm Power Pcl and Vietnam’s Phu Yen TTP JSC.

Last year, the Thai group spent 32.5 million USD buying up to 80 percent of stake at Phu Yen TTP JSC – the investor of the 257 MW plant in Phu Yen, which is expected to be put into operation in June 2019.

In April 2019, the Export-Import Bank of Thailand (EXIM Thailand) also extended 65 million USD in credit to Eastern Power Group Pcl and Communication & System Solution Pcl to finance the construction of two solar power plants in Phu Yen, with combined generating capacity of 100 MW.

In 2018, Thailand’s Sermsang International Co. Ltd., purchased 80 percent of the Binh Nguyen solar power project in the central province of Quang Ngai at 17.6 million USD.

The same year, Gulf Energy Development Group of tycoon Sarath Ratanavadi tied up with Green Energy Company of Vietnam to develop a 48 MW solar power project worth 66 million USD in Trang Bang district, the southwestern province of Tay Ninh.

Meanwhile, Superblock Pcl, Thailand’s biggest solar energy company, has also invested in some projects in Vietnam, in line with its goal of acquiring some renewable energy companies in Southeast Asia, towards expanding its operation in China, Japan and Australia.

Most of the above-mentioned solar power projects are expected to be completed before June 30 to benefit from the preferential price of solar power at 9.35 US cents/kWh, which will be applied for 20 years as from June 30, 2019.

Between April 23 and May 17, a total of 23 solar power plants were inaugurated in Vietnam, raising the number of solar power plants in the country to 27. The figure is hoped to stand at 88 by June 30.

According to Audistti Stroithong, apart from central and southern regions that are blessed with the high level of radiation and abundant wind energy, Thai businesses are seeking investment opportunities in north-central localities of Vietnam.

Thai enterprises are ready to step into the Vietnamese market to invest in the renewable energy sector, he said.

The Vietnamese Government has issued various incentives in terms of credit, corporate income tax and land lease price, helping to lure waves of both domestic and foreign investors in renewable energy development, including those from Thailand, he said.

Currently, Vietnam has added 121 solar power projects to national and provincial electricity planning schemes. Besides, another 221 projects with total designed capacity exceeding 14,330 MW are waiting for approval.

Experts forecast that the domestic solar power sector will lure about 12 billion USD by 2025 and 42 billion USD by 2035.-VNA

Electricity/Power Grid

EVN to complete divestment in 2019

5 June 2019

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Vietnam

HÀ NỘI — Việt Nam Electricity (EVN) expects to complete its divestment from both core and non-core businesses this year.

The company recently said it completed capital withdrawal and reduction at two out of its six firms, earning more than VNĐ296 billion (US$12.7 million), which was VNĐ63 billion higher than the book value.

In 2011-15, EVN completed divestment from its non-core businesses, earning VNĐ2.3 trillion and capital surplus of VNĐ127 billion.

It also completed the re-arrangement and restructuring of its subsidiaries toward specialising electricity production, generation and distribution works.

Last year, EVN transformed Power Generation Corporation 3 (GENCO 3) into a joint stock company which then was traded on UpCom with the code of PGV.

The group said it has been rushing to approve the restructuring plan of its nine subsidiaries, separating management and repair services, and rearranging power companies and the National Load Dispatch Centre.

In addition, all of its member and associated companies were eligible to list and trade on the stock market.

It has also gradually innovated administration model following international standards and set up international control systems from the parent company to subsidiaries to prevent risks.

EVN is also building a project to pilot a competitive retail power market, which will be submitted to the Ministry of Industry and Trade for approval in July.

The information and technology infrastructure to serve wholesale power market is expected to be ready in 2020.

EVN and its subsidiaries have provided timely and adequate business information, leading to a BB rating from Fitch Rating, equal to the country’s rating. — VNS

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