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  • Electricity/Power Grid
5 June 2019

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  • Lao PDR

VIENTIANE, June 5 (Xinhua) — Lao government has agreed to conduct a feasibility study on electricity trading and hydropower exchanges with neighboring countries to boost cooperation in the energy sector, local daily Vientiane Times reported on Wednesday.

Laos has agreed to sell 5,000 MW of electricity to Vietnam, while it is currently exporting just over 300 MW and is expected to supply 1,000 MW by 2020, Lao Minister for Energy and Mines, Khammany Inthirath, reported at the opening of the energy and mining sector’s first quarter meeting on Monday.

“Both countries are hoping to increase Lao electricity exports to Vietnam to 3,000 MW by 2025 and to more than 5,000 MW by 2030,” he said.

The Lao government is currently conducting negotiations on electricity trading with Vietnam and expects to sign an agreement soon, Khammany said.

Khammany said that Laos has agreed to sell 9,000 MW of electricity to Thailand, which currently stands at 4,260 MW, but will increase to 7,000 MW by 2020 and 9,000 MW by 2025. Laos has also agreed to sign electricity trading pacts for four projects with Thailand, of which 2,357 MW of installed capacity is expected to sell by the end of this year. Laos has improved the price for electricity trading and increased electricity exports to Thailand, Khammany said.

Laos, Thailand and Malaysia have partnered to study the increase in capacity to 300 MW for electricity provided to Malaysia.

Laos currently supplies electricity via a 115 kV transmission line and is considering increasing its capacity to sell power via 230 kV and 500 kV transmission lines.

  • Renewables
5 June 2019

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  • Vietnam

Japan’s Sharp has marked a substantial boost to its Vietnamese portfolio after finalising a 49MW project, its fourth to date in the country.

The installation in Quang Ngai province, central Vietnam, will now start supplying power to the grid after wrapping up construction in recent weeks.

The project was delivered alongside Thailand’s Sermsang Power Corporation (SSP) and one its subsidiaries, Truong Than Quang Ngai Power and High Technology Joint Stock Company.

The latter will be charged with running the plant, designed to cover the electricity needs of 38,000-plus Vietnamese households as it produces 73GWh every year.

The work was overseen by Sharp Energy Solutions Corporation, a subsidiary that develops rooftop PV, battery storage and smart energy systems for customers in Japan and abroad.

The plant is the fourth developed by Sharp in Vietnam so far, pushing capacity up to the 195MW mark.

The first of the four – boasting a capacity of 48MW – marked its commercial launch last October in the Thua Thien Hue province, further up north. Two similarly-sized plants are being built in Binh Thuan and Long An provinces, in Vietnam’s south.

Vietnamese PV has witnessed in recent years the arrival of the first utility-scale projects but has a long way to go towards its goal to hit 12GW capacity by 2030.

The Southeast Asian state runs feed-in tariff schemes to support the roll-out but faces significant clustering issues, with grid congestion a particular risk in the Ninah Thuan province and other hotspots.

  • Renewables
5 June 2019

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  • Vietnam

India’s Waaree Energies has commissioned a 49.5 MW ground-mounted solar project in Vietnam.

The project has been developed for Song Giang Solar Power on a 60-hectare site in Cam Ranh, Khanh Hoa province. It was completed in 120 days and is expected to generate more than 78,600 MWh of electricity per year.

The power generated by the plant will be sold to state-owned utility Vietnam Electricity, under a 20-year feed-in tariff (FIT) set by the Vietnamese government. Waaree Energies will handle O&M services for the $40 million installation.

“Everything including modules and even the structures were supplied from India,” said Sunil Rathi, director of Waaree Energies. “We were able to complete the project much before time, despite challenges like communication barriers and the loss of 30 working days to rain. Further, electricity transmission laws for the project requirements were completely different. Studying and meeting those requirements and consistently commissioning the project was a challenge.”

Vietnam is one of the 20 fastest-growing economies in the world, with average annual investments of $6.8 billion in the power sector. The government is targeting 12 GW of solar installations, with Rathi noting that energy demand is expected to rise by 10% by the end of this decade. “Waaree is targeting this growing demand,” he said.

Waaree Energies expects its international projects to account for over 15% of its overall revenue in FY2019-20. Its latest project in Vietnam marks the company’s completion of more than 600 MW of solar EPC projects.

“There is a big market globally, not just for PV panel supply, but also for EPC work, especially in countries like Vietnam, Cambodia and Thailand,” Rathi said. “We are in the process of signing more projects. We are also looking at African countries, where demand is very big.”

Overall, the company has an international pipeline of 100 MW. It has a presence in more than 280 locations across India and in 68 countries throughout the world. At 1.5 GW, it claims to have India’s largest solar PV module manufacturing capacity. It plans to expand its plant in the state of Gujarat to 2 GW by the next quarter.

  • Renewables
5 June 2019

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  • Philippines

MANILA, Philippines — AC Energy Inc., the energy platform of Ayala Corp., has completed its second solar project worth $83 million in Vietnam in partnership with AMI Renewables Energy Joint Stock Co.

The Ayala firm said the completed projects are composed of two solar plants with a combined capacity of 80 megawatts (MW) located in the provinces of Khanh Hoa and Dak Lak.

The partners inaugurated the 30-MW Dak Lak facility last April 25 and the 50-MW Khanh Hoa solar plant on May 30.

“This reaffirms AC Energy’s commitment to shore up our presence in the region, particularly in Vietnam’s growing power sector. We believe that this is a critical part of the country’s progress,” AC Energy COO for international Patrice Clausse said.

With a project cost of $83 million, the solar plants were completed in time for the Vietnam government’s feed-in tariff deadline of June and are expected to qualify for the FIT.

“These projects are a testament to our long-term commitment to the economic and social development of the provinces of Khanh Hoa and Dak Lak,” AC Energy senior vice president Miguel de Jesus said.

The two solar power plants are a stepping stone to reach one gigawatt of renewable energy capacity with AC Energy, AMI AC Renewables Joint Stock Company CEO Nguyen Nam Thang said.

“The successful completion of the Khanh Hoa and Dak Lak solar projects speaks to our strong partnership with AC Energy. Together, we hope to grow our renewables to 1 GW by 2025 in Vietnam,” he said.

In 2017, AC Energy and AMI Renewables formed a platform company, named AMI/AC Renewables Joint Stock Company, to build renewable energy plants in Vietnam. AC Energy has at least 50 percent economic share in AMI/AC Renewables.

The partners are in advanced discussions for the development of the Quang Binh wind project which has a potential of 200 to 300 MW.

The commissioning of the Khanh Hoa and Dak Lak solar plants come on the heels of the inauguration of the 330-MW solar farm in Ninh Thuan, AC Energy’s first greenfield project in the country.

The Ninh Thuan solar project, consisting of three solar plants, is a joint venture between AC Energy and the BIM Group and is one of the largest solar farms in Southeast Asia.

With five new solar plants in its portfolio, AC Energy said it would continue to be an active participant in Vietnam’s renewable energy sector as it aims to reach its target of 5 GW of renewable energy capacity by 2025, with renewables contributing at least 50 percent of total energy output.

  • Others
5 June 2019

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  • ASEAN

While electric vehicles (EVs) continue to capture the attention of consumers in ASEAN, policies and subsidies in line with those found in countries leading the switch to EVs will make electric vehicles a more attractive proposition for the region.

EVs, including hybrid electric cars, can drastically reduce carbon emissions released into the environment. Compared to conventional cars that release unhealthy amounts of carbon dioxide, carbon monoxide and nitrogen oxide into the environment, battery-electric cars effectively produce zero-emissions from their tailpipes.

Bloomberg Energy Finance last year predicted that 54 percent of new cars sold in 2040 will be EVs, accounting for 33 percent of the global car fleet by then.

A study commissioned by Nissan last year found that a third of Southeast Asian consumers are open to buying an EV. Titled ‘Future of Electric Vehicles in Southeast Asia’, the study found that while EV sales in ASEAN are generally weak – consumers in the Philippines, Thailand and Indonesia were the most enthusiastic about the future of EVs.

Intention to buy EV in ASEAN

Source: Frost & Sullivan

Proper policies and incentives will go a long way in getting more Southeast Asians to drive EVs.

A report published by the ASEAN Secretariat in February titled ‘ASEAN Fuel Economy Roadmap for Transport Sector 2018-2025: With Focus on Light-Duty Vehicles’ found that strong EV sales in the Unites States (US), Europe, Japan and China are mainly driven by policy support and a minimum subsidy of US$3,000.

EVs are exempted from registration taxes in China, Denmark, Germany, India (partly), the Netherlands, Norway, Sweden and United Kingdom (UK). Apart from monetary incentives, policies such as preferential access to otherwise restricted zones (e.g. low-emission zones), priority parking, road toll exemptions and the right to use bus lanes provide incentives to buy EVs – especially in urban areas.

As of 2018, direct subsidies or substantial tax exemptions, especially in countries with high vehicle registration taxes at the time of purchasing an EV, have the strongest impact on EV sales. Norway, the Netherlands and Sweden have EV sales shares in the order of 3.4 percent (Sweden) to 6.4 percent (Norway) while providing monetary incentives in the range of US$5,000 to US$15,000 to EV buyers.

Policies in ASEAN

Speaking at a seminar on EVs in Bangkok last Friday, experts reminded the Thai government that high prices for EVs – along with the lack of EV charging stations – hamper its viability among buyers in the country.

The director of Thailand’s Tax Planning Office at the Excise Department, Nattakorn Uthensut, was then quoted by Thai media as saying that subsidies in other countries are helping boost sales of EVs – pointing out that the US subsidises US$7,500 for every new purchase.

While the Board of Investment of Thailand (BOI) has offered investment privileges for EV manufacturers since 2017, the starting prices of EVs is still quite high in Thailand – ranging from US$31,921 to US$63,842 – compared to gasoline vehicles’ that range from US$19,152 to US$22,344.

As Ipsos Consulting noted in a report on the ASEAN auto industry in June 2018, BOI’s incentives – which include tax holidays and import tariff exemptions – show how vehicle manufacturers are positioning themselves to be best placed to benefit from growing market demand for EVs domestically. As evidence of this, 40 percent of vehicles sold in Thailand in 2017 by Mercedes were plug-in hybrids. The figure for BMW was 13 percent over the same period.

In Indonesia, the government is set to issue regulations for EV owners to receive low-emission incentives for luxury vehicles, reducing the tax from a maximum of 125 percent to between 0 to 30 percent based on a vehicle’s carbon dioxide emissions.

Even Brunei, ASEAN’s smallest country, is already embarking on a shift towards EVs.

In March, Brunei announced regulations to reduce the country’s carbon dioxide emissions and fuel subsidies. It is also planning to introduce a pilot project to have at least 10 percent of cars on its roads by 2035 to be EVs.

The country’s Minister of Energy, Manpower and Industry Hj Mat Suny Hj Md Hussein noted that as many as 1,960 fuel-efficient and hybrid cars have been registered in Brunei since 2012, saving the country more than US$1.04 million in subsidies and reducing carbon dioxide emissions by 4,361 metric tons.

As EVs become more commonplace on the region’s roads, ASEAN governments and EV car manufacturers should look at more subsidies and tax incentives in order to better develop the industry, boost sales and combat climate change.

  • Electricity/Power Grid
4 June 2019

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  • Philippines

MANILA, Philippines — Renewable energy developers are pushing for the development of mini-grid systems to fasttrack the achievement of 100 percent electrification in the country.

The Renewable Energy Association of the Philippines (REAP) believes mini-grid systems can accelerate the pace of electrification nationwide.

“Mini-grid systems will play an important role in ensuring and accelerating the total electrification of the country. Being an archipelagic country, centralized power generation can be challenging, if not costly,” REAP president Erel Narida said.

He said mini-grid systems could be a suitable solution for electrification which currently stands at 88.3 percent, with about 2.78 million households still unelectrified as of December 2017, citing data from the Department of Energy (DOE).

“Most of these households are located in Visayas and Mindanao, mostly small islands, either underserved using expensive diesel genset with limited operation or totally unserved. Mini-grid systems can utilize indigenous and new and renewable energy (RE) like solar, wind, hydro, biomass or ocean in power generation that will eventually reduce our dependence on diesel or imported energy,” Narida said.

The REAP official cited the hybrid mini-grid project of Sabang Renewable Energy Corp. (SREC), located in Sitio Sabang in Barangay Cabayugan, where the Puerto Princesa Subterranean National Park is located.

SREC – a consortium of Vivant Energy Corp., Gigawatt Power Inc. and WEnergy Global – will operate a solar-diesel hybrid power plant and an electricity distribution system that will provide stable and reliable renewable energy in Barangay Cabayugan, Puerto Princesa City.

Narida said SREC has showcased such integration / hybridization of RE specifically solar, battery and diesel generator sets as back-up for power generation, making it more socially and environmentally acceptable due to reduced running time of diesel genset, and use of RE as primary source of power.

“It’s very encouraging for local mini-grid developers to follow suit. The next challenge is to accelerate replication with more participation of local small and medium enterprises (SMEs) in the RE market space,” he said.

“The easing of regulations, access to funds, adaption of new RE technologies on integration and understanding the market both economics and social dynamics on island mini-grid are key factors that we have to  look into to accelerate this development,” the REAP official said.

Under optimal conditions, SREC’s hybrid plant will generate as much as 2.6-megawatt peak once completed. This will allow the mini-grid to provide power to approximately 10 public buildings, 18 small businesses, 19 hotels and restaurants and 583 households.

The project is seen to spare the environment from over 25,000 metric tons of carbon dioxide emission while providing stable and reliable energy that will improve everyday living in Cabayugan.

  • Electricity/Power Grid
4 June 2019

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Prime Minister Hun Sen announced on Monday that by next year, Cambodia will not face a shortage of electricity supply. The Kingdom has reserved 400MW from two large power generators.

Speaking to students at a graduation ceremony in Phnom Penh on Sunday, the prime minister said the government has approved to buy two power generators from Germany and Finland, each with a 200MW capacity to reserve for the capital’s power supply.

“A lack of water affected power generation this year. It has been a huge experience for Cambodia in addressing the challenges,” he said.

The prime minister previously said the Kingdom had an electricity shortage of 400MW. National utility company Electricite du Cambodge (EDC) has just signed an agreement to purchase 200MW of additional power from Laos.

Hun Sen said: “Next year there will not be any such problems if hydropower is not available. We still have oil and gas generators.”

The prime minister had previously announced that the Kingdom would import power ships from Turkey to compensate for the shortages, but the plan was later cancelled.

Electricity Authority of Cambodia (EAC) vice-chairman Ty Thany told The Post on Sunday that Cambodia had ordered two fuel-powered generators to be used during this year’s severe shortages.

“We hope that there will be no problem with electricity shortages,” he said, adding that the generators would only be used for reserve as they are expensive to run.

Cambodia is currently among the fastest electrifying countries in the world, with coverage reaching 89.1 per cent as of the end of 2017, a newly published World Bank report said.

The Kingdom has made significant progress in providing access to electricity, becoming one of four countries to have electrified at a rate of around eight per cent each year since 2010, said the World Bank’s Energy Progress Report 2019.

Cambodia electrified at a rate of 8.3 per cent annually between 2010-17, the report said.

The EAC’s 2018 annual report said Cambodia plans to increase its power supply to 2,870MW by this year, up from 2,650.26MW last year.

The Federation of Associations for Small and Medium Enterprises of Cambodia president Te Taingpor said past electricity shortage problems have caused the Kingdom’s SMEs to face a number of manufacturing issues.

“If this shortfall drags on to next year, it could have a negative impact on a daily business and also make entrepreneurs reluctant to invest.”

“I hope we will have enough electricity next year. At the same time, if we still have a shortage, we should be given sufficient prior notice to prepare in advance,” he said.

A 60MW solar power plant in Kampong Speu province is expected to be fully operational next month.

Kampong Speu provincial governor Vy Samnang said solar power station invested by Schnei Tec Co Ltd will have transferred 40MW of their power into the national network by early next month. A further 20MW may be ready in July.

“Because investment in the Kingdom is currently increasing strongly and exceeding forecasts, electricity supply across the country may not be fully settled at the moment,” he said.

  • Renewables
4 June 2019

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  • Thailand

Global waste and resources firm Suez has announced plans to build a 30,000 tonnes per year capacity plastic film reprocessing plant in Thailand.

To be built in the Bang Phli district near Bangkok, the plant will process polyethylene film collected from across the region. Construction works are expected to be completed by mid-2020.

An artist’s impression of the new plant to be built in the Bang Phli district near Bangkok

The plant will be equipped with an advanced water treatment system that minimises water usage and will meet the highest level of local environmental standards, Suez says.

Part of the energy used by the plant is powered by roof top solar panels to ‘further improve the site’s environmental footprint’, the company added.

It is hoped that the facility will contribute towards Thailand’s 2030 target to achieve 100% recycling of the plastic it uses.

Suez is also building a waste-to-energy plant in the country through a joint-venture agreement with WHA Utilities and Power Plc and Glow Energy Plc – named Chonburi Clean Energy.

Recycling

Commenting on the announcement of the plastics processing plant, Ana Giros, the company’s senior executive VP group in charge of the international division, said: “In Thailand two million tons of plastic waste are produced per year and only a quarter is recycled. As a leader in plastics recycling in Europe, Suez will fully utilise its technological expertise to support the country in meeting its objective of reducing plastic waste, thus contributing to oceans’ preservation.”

“As a leader in plastics recycling in Europe, Suez will fully utilise its technological expertise to support the country in meeting its objective of reducing plastic waste, thus contributing to oceans’ preservation.”


Suez

Suez operates a total of nine plastic recycling plants worldwide, with a total processing capacity of around 400,000 tonnes of material per year.

In 2018, Suez opened a facility in Maastricht, Holland, as a joint venture with the plastics and chemicals company LyondellBasell to process HDPE and PP plastics. Upon opening, the plant had the capacity to process around 25,000 tonnes of material (see letsrecycle.com story).

Other facilities include a plastic PET bottle recycling plant at Limay, Île-de-France, which has the capacity to produce around 30,000 tonnes of rPET pellets.

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