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  • Energy Efficiency
5 April 2019

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  • Malaysia

Tenaga Nasional Bhd (TNB) is launching a campaign aiming to promote energy efficiency with the intention to remind and educate Malaysians on the significance of environmental sustainability through power saving.

The larger purpose of the campaign is to steer transformation towards a future energy ecosystem that delivers a balance between environmental sustainability, secure and reliable energy supply, and optimal economic development.

This message is especially important as temperatures soar. Rising temperatures in the last month has led to increased energy usage as folks ramp up the use of air conditioners, fans or coolers. This will naturally result in higher consumption.

According to Roslan, TNB believes that small steps will bring about eventual mileage

“Given the increasing demand for energy at this time, and even globally, we believe more efficient energy usage is possible with a change in energy consumption behaviour — which possibly necessitates a mindset shift,” said TNB chief corporate officer Datuk Wira Roslan Ab Rahman.

Disparity exists in the adoption of energy saving behavioural patterns among Malaysians and in other parts of the world. Findings indicate that Malaysians are more apathetic towards the conservation of power.

Malaysian scores pale in comparison to certain Western countries like Norway, Switzerland and Sweden, according to the World Economic Forum report entitled “Fostering Effective Energy Transition 2018”.

The study shows that mindfulness of energy efficiency and adoption of power conserving methods — plus readiness for transition for a secure, sustainable, affordable and reliable energy future — is approximately 15% higher in these countries, allowing the economies to make strategic energy investments committed towards environmental stewardship.

Current energy consumption patterns and associated environmental pressures have ignited the Malaysian government’s concerns regarding energy conservation.

Energy, Science, Technology, Environment and Climate Change Minister Yeo Bee Yin said a regulatory framework, called the Energy Efficiency and Conservation Act (EECA), will be put in place to renew the National Energy Efficiency Action Plan. It is set out to achieve 8% energy efficiency by 2020.

In efforts to set the tone, the ministry has committed to retrofitting 50 government buildings with energy-efficient (EE) LED lightings and high EE value appliances. There is an expectation that this will lead to savings of RM47 billion over 15 years.

“We are at an interesting and important juncture of EE evolution in the country. As the energy industry continues to evolve, TNB has become increasingly aware of the need to meet the global energy challenge and support the transition towards a low-carbon economy.

“With TNB having the ability to play a significant role in much of the ongoing change, it takes upon itself the responsibility to balance this shift, although no single government, industry or institution can address the challenges alone,” said TNB chief strategy and regulatory officer Datuk Fazlur Rahman Zainuddin.

Having contributed to the nat ion’s development, TNB intends to enhance its capabilities and stay abreast of the transition towards a low-carbon economy by promoting renewable energy generation, embracing new technologies throughout the operations and empowering customers to make better use of their power usage through energy efficiency.

“Energy is at the heart of modern economic prosperity. Energy efficiency is believed to be the first leg of a sustainable global energy ecosystem and, as most things, this too begins at home.

“I believe it could be the first step towards mitigation of climate change, better energy security, growing green economies and delivering solid environmental benefits,” he said.

At this juncture, TNB is stressing on the importance of energy efficiency to its 9.1 million customers.

It has introduced product innovations in energy technology, including smart meters Maevi and GSPARX, to Malaysian households.

It recognises these technologies as the first big step of empowering customers towards the sustainable energy industry of the future, beyond instilling environmental consciousness into the minds of Malaysians.

The company also actively adopts efficient technologies and ensures that even the older plants are properly maintained and, where possible, upgraded to maintain their efficiency.

As an example, the company decommissioned inefficient and ageing combined cycle gas turbine (CCGT) plants and replaced them with cutting-edge CCGT technologies, enabling the plants to achieve a generation efficiency of up to 60%.

Additionally, six of TNB’s distribution buildings were selected as models of EE buildings in the country.

Under the Asean Energy Awards, Wisma TNB Jalan Timur was awarded first runner-up under the Energy Management for Buildings and Industries Awards in the Large Building Category for demonstrating excellence, creativity, practicality and dedication in the field of energy efficiency. With this initiative, TNB managed to reduce up to 6% of energy consumption in the building.

According to Roslan, TNB believes that small steps will bring about eventual mileage.

“Sustainability lies at the core of all that we do. It is embedded in our company policies and inextricably linked with our business strategy and decisions.

“Our mission is to continue contributing to the nation’s development by providing Malaysia with safe, secure and reliable energy. Having said this, we anchor our operations on an identified strategy — embracing green initiatives throughout our business — from managing our own carbon footprint, to providing clean energy products and services to customers,” he said.

  • Electricity/Power Grid
5 April 2019

 – 

  • Malaysia

KUALA LUMPUR: Tenaga Nasional Bhd (TNB) does not expect electricity tariffs to come down immediately to match international pricing of gas and coal.

This is because the government via the Energy Commission has set the base tariff at 39.45 sen per kWh for the three years of 2018, 2019 and 2020.

TNB, in turn, uses its Imbalance Cost Pass-Through (ICPT) mechanism to determine whether there would be a surcharge or rebate on the base price on a six-month basis.

The next tariff change facilitated by the ICPT is for the six months of July to December 2019.

“From TNB’s point of view, we expect that regulation and rules to be maintained until the next scheduled meeting,” its chairman Tan Sri Leo Moggie told reporters on the sidelines of the Perdana Leadership Foundation CEO Forum 2019 organised by EY here today.

Moggie was responding to Prime Minister Tun Dr Mahathir Mohamad’s recent remarks that the government was considering reducing electricty tariffs in the wake of falling global coal and gas prices.

Of late, spot coal cargo prices for exports from Australia’s Newcastle terminal have fallen by more than 30 per cent from US$118 per tonne as of July 2018, to US$79 per tonne this week.

Asian liquid natural gas (LNG) spot prices for May deliveries reportedly dropped more than 60 per cent from US$11.81 per MMBtu in September 2018 to US$4.40 per mmBtu this week.

Moggie acknowledged that eventhough there is a downtrend pattern in coal and gas pricing, the levels are still above the base tariff of 39.45 sen per kWh, set by Energy Commission, for the three years of 2018, 2019 and 2020.

The base tariff of 39.45 sen per kWh is on the assumption that the international markets pricing of coal averages at US$75 per tonne and piped gas at RM27.20 per mmBtu.

Every six months, the Energy Commission will look at the international pricing structure and compare it to the base price of generating electricity.

TNB, in turn, uses the base price for its ICPT to determine whether there would be a surcharge or a rebate. It works both ways.

“If the overall cost of fuel in the previous six months is higher than the base tariff, then TNB will place a surcharge to the consumers.

“If it is lower, consumers would enjoy rebates in the following six months,” Moggie said.

He reiterated it is up to the government to undertake any revision of the electricity tariff as it is not within TNB’s power to interfere with the government’s decision.

  • Coal
5 April 2019

 – 

  • Indonesia

The government set on Thursday the coal reference price at US$88.85 per ton in April, a 0.84 percent decrease from the $90.57 per ton set in the previous month.

The change marks a further decrease of the coal price, which stood at $107.83 per ton in August last year.

Energy and Mineral Resources Ministry spokesperson Agung Pribadi said a number of factors could be attributed to the decrease of the coal reference price, including the limitations on coal imports in India, China’s lower demand for Australian coal, a hike in coal production in China for domestic purposes and Russia’s low sales in coal across Europe.

The government set a target to produce 485 million tons in 2019, a similar target to that of 2018, when 25 percent of the coal produced was allocated for the domestic market through the domestic market obligation (DMO) scheme, mostly to supply electricity plants.

Under the DMO scheme, the coal domestic price was set at $70 per ton.

The change to the coal reference price also took into account decreases in the Indonesia Coal Index (2.09 percent), Newcastle Export Index (3.41 percent) and Globalcoal Newcastle Index (2.42 percent) and an increase in the Platss 5900 by 0.84 percent. (bbn)

  • Electricity/Power Grid
  • Others
4 April 2019

 – 

  • Philippines

TAGUIG CITY – Department of Energy (DOE) Secretary Alfonso G. Cusi has been closely coordinating with the power industry players to address the growing demand and the thinning of power reserves for the summer months.

“The entire energy family should take a pro-active approach towards securing our power supply, especially since it is both summer and election season,” Sec. Cusi said.

The National Grid Corporation of the Philippines (NGCP), Independent Electricity Market Operator of the Philippines, Manila Electric Company (Meralco), and the DOE agreed that the power situation should be closely monitored given supply level adjustments brought about by increasing demand and the forced outages of power plants.

Strategies on how to address thinning power reserves were also discussed during a meeting with Meralco officials. This includes the creation of additional power bypass lines, the efficient utilization of available power plants, as well as the application of demand-side management and accurate information dissemination to consumers.

On the matter of the Interruptible Load Program (ILP) as a measure to help enhance power reserves, Sec. Cusi emphasized that “it shall be implemented as a last resort given the additional costs the ILP would bring to consumers.”  The ILP serves as an option for Distribution Utilities (DUs) like MERALCO and electric cooperatives to ask their big load customers to serve their own power needs by using their own generator sets to augment power supply capacity in times of Red Alert Status or when power supply reserves are thin.

“We will not wait for a loss of power to occur. The ILP is there as a final option to help us prevent a supply shortage,” Sec. Cusi added.

Yellow Alert Monitoring
According to the report of the NGCP, the yellow alert status issued today has been lifted effective at 4:00pm due to sufficient operating reserve brought about by low actual demand.

Earlier today, the NGCP issued a yellow alert notice issued for 1:00pm to 4:00pm today, due to insufficient operating reserve brought about by the high system demand and forced outage of the following plants:

Malaya Unit 2 (350 MW)

Pagbilao Unit 3 (420 MW)

SLTEC Unit 1 (135MW)

Makban Unit 7 (20 MW)

Tiwi Unit 6 (57 MW)

Tiwi Unit 1 (60 MW)

(Total = 1,042 MW)

De-rated Plants:

Masinloc Unit 2@250 (344MW)

Calaca Unit 2@200 (300MW)

Malaya Unit 1@150 (300MW)

SLPGC Unit 2@100 (150MW)

“The DOE and the energy players are closely monitoring the increases in demand and the power plants that are expected to be in,” Undersecretary Felix William B. Fuentebella emphasized in a press conference earlier at the agency’s headquarters.

The other strategies considered by the power industry players include the management of plant maintenance schedules, the optimization of existing hydroelectric power plants, the upgrading of the electricity facilities, the preparation of available generator sets for unforeseen outages, the participation of big establishments in the Interruptible Load Program, as well as the continued call for an energy efficiency lifestyle for electricity end-users. The DOE also emphasized the improvement of the operations of power plants and through the use of renewable energy (RE) and information technology.

Demand-Side Management Strategies
The DOE through its Energy Utilization Management Bureau (EUMB) reiterated the importance of its SAVE SAVE SAVE energy efficiency campaign, not only to incur more savings, but also to ensure uninterrupted electricity services this summer season.

  • Renewables
4 April 2019

 – 

  • Philippines

More renewable energy facilities will be needed in Mindanao, the southernmost part of the Philippines, to keep up with the rapid growth of industries, real estate, services, and agribusiness. This was the message of Mindanao Development Authority (MinDA) Assistant Secretary and Deputy Executive Director Romeo Montenegro to the stakeholders in the Water, Energy, and Power Summit which was held on March 26 in Zamboanga City.

Mindanao will need about 3500 MW of additional capacity between 2021 to 2030, according to Montenegro.

Mindanao currently has an excess energy supply due to the construction of new power plants. However, these are mostly coal-powered plants, which have resulted in a regression of the region’s renewable energy-fossil energy mix.

In 2015, the power energy mix in Mindanao was 49% hydropower, 31% oil-based, 14% coal, and 6% geothermal. After the entry of the coal power plants, the 2017 energy mix shifted to 49% coal, 29% hydropower, 18% oil-based, 3% geothermal, and 1% biomass.

Overall, the fraction of energy generated in Mindanao from renewable sources decreased from 55% to 33%.

  • Renewables
4 April 2019

 – 

  • Vietnam

Solar power development has yet to meet potential

In Vietnam, the development of solar power including solar power systems on the roof of houses is considered to have a lot of potential. Specifically, the annual radiation measured in the Southern region and South Central provinces is approximately 1,600 kWh/m2. According to a report on the technical assessment of the potential of rooftop solar energy in Vietnam released by the World Bank in 2017, the potential of solar energy in Ho Chi Minh City is about 6,300 MW. Meanwhile, Hanoi has average monthly sunshine hours of about 1,466.1 hours per year, which is listed in the areas of average solar radiation of 3.3 to 4.1 kWh/m2 per day.

According to the Ministry of Natural Resources and Environment, the generation of every 1 kWh of solar energy will help to reduce CO2 emissions by 0.6612 kg. If solar energy is promoted, it would be a clean energy resource with rather high output, while helping to minimise the budget invested in electricity generation and transmission facilities.

In many countries, solar energy is also a developed industry, creating jobs and income for many people. It is estimated that if only two million rooftops in Vietnam were installed with solar panels with a capacity of 10 kW per roof it would reduce the corresponding amount of 16 million tonnes of coal per year used for coal fired power plants.

Prof. Dr. Tran Dinh Long, vice chairman of the Vietnam Electrical Engineering Association, said that the output of solar power systems generated at public facilities in the morning can meet 25 to 30% of power demand of these facilities and up to 60-65% of power demand during noon and sunny hours. Tran Hong Ky, an energy researcher at the World Bank, said that about 30% of the roofs in Ho Chi Minh City and Da Nang are capable of installing rooftop solar energy systems effectively.

With the goal of reaching solar output of 1 GWp by 2020, the Prime Minister approved Vietnam’s renewable energy development strategy by 2030, with a vision to 2050, along with a number of mechanisms to encourage the development of solar power projects. The Ministry of Industry and Trade also issued Circular 16 on solar project development and electricity purchase contracts in a bid to solve problems related to tax, payment methods and others at rooftop solar power projects.

Deputy head of EVN Business Division Tran Viet Nguyen said that offices and branches of EVN installed rooftop solar systems at 54 locations with a total capacity of 3.2 MWp in 2018. Approximately 1,800 customers including offices, businesses and households are installing rooftop solar systems with a total capacity of 30.12 MWp.

A representative from Ho Chi Minh City Power Corporation (EVN HCMC) said that the implementation of rooftop solar power in Ho Chi Minh City has proved effective. EVN HCMC has installed rooftop solar systems with a total capacity of nearly 1,130 kWp and is continuing to deploy other systems with a capacity of 2,658 kWp.

EVN General Director Tran Dinh Nhan said that the above figure is too small compared to the potential of solar power in Vietnam, citing a lack of specific regulations on electricity purchasing when households connect their solar power systems to the national grid. In addition, information about rooftop solar power remains limited.

EVN cannot sign power buying contracts with customers because there are no official instructions on how to buy solar electricity from households. Customers still hesitate to invest in solar systems due to the lack of information about product quality, operating methods, equipment warranty, and others.

According to experts, the installation of solar power panel systems has become easier thanks to the development of technology. However, the cost of investment at around VND20-VND25 million (US$1,000) per kWp remains high, while there is no support policy for solar power projects, leading to the rejection of households.

More efforts needed

EVN General Director Tran Dinh Nhan affirmed that the electricity sector will assist households and enterprises in installing solar power systems and help them with procedures for connecting to the national grid, in addition to the signing of power purchase contracts. He noted that the buying of solar electricity connected to the grid will be done immediately when there are guidance circulars issued by the authorities.

Furthermore, EVN will bear the full costs of the installation of electricity meters to measure the volume of electricity consumed as well as connected to the grid. EVN also proposes ministries and agencies to promote information on the benefits of rooftop solar power to the public. The Government should encourage agencies, units, organisations and People’s Committees of provinces and cities to establish rooftop solar systems through providing them with supporting mechanisms.

Dao Minh Hien from Power Engineering Consulting Joint Stock Company 2 (PECC2) said that there are several models to support people to install rooftop solar panels such as power companies fund, rent or lease roofs or rooftop solar power systems.

EVN is actively cooperating with international partners to learn and approach policies to encourage investment in the development of solar projects in Vietnam in addition to updating technology and solutions to develop rooftop solar systems for customers.

Managing Director, Principal Investments at VinaCapital, Samresh Kumar, said that the mobilisation of international capital is necessary to boost the development of rooftop solar energy, particularly on an industrial scale. International financial institutions will directly give loans to solar energy developers to help them invest in solar projects, or provide loans through domestic financial intermediaries.

According to Director of Green Innovation and Development Centre (GreenID) Nguy Thi Khanh, one of the reasons for the rejection of rooftop solar energy in Vietnam is the lack of information on the system including categories, technical regulations, costs, chance to get back your investment, and others. Therefore, an important solution to promote the development of rooftop solar energy is to boost communication to the community, especially informing households of the investment capacity and the practical benefits of this model.

Deputy Minister of Industry and Trade Hoang Quoc Vuong said that a circular to amend Circular 16 will soon be issued by the ministry, after completing the collection of comments from ministries and sectors. This new document will specify the method of payment for the purchase of solar output through specific contracts, thereby helping the relevant parties to have a reasonable payment mechanism in order to overcome shortcomings of Circular 16. The legal document is also expected to encourage investment in and development of rooftop solar energy in the future, Vuong noted.

  • Bioenergy
4 April 2019

 – 

  • Thailand

Thai renewable power operators plan to file a lawsuit against a new version of the power development plan (PDP) 2018-37 after seeing it has a lower quota for renewable power generation.

Pajon Sriboonruang, president of the Thai Biogas Trade Association (TBTA), said the power capacity quota from renewable energy in the PDP is lower than the association expected.

“We are filing the claim against energy policymakers with the Administrative Court [today] to delay the implementation schedule noted in the new PDP,” said Mr Pajon.

The PDP 2018-37, approved in late January by the National Energy Policy Council, is set to limit the power capacity for biomass and biogas, although both resources have lots of potential and are abundant, he said.

The PDP offers many privileges and incentives for solar power operators, even allowing households to join the solar power scheme, while policymakers plan to allow sales of output to the state grid.

The new version of the plan has yet to be acknowledged and approved by the cabinet, waiting for a new government to be formed.

Mr Pajon said the new version sets a goal for renewable power to comprise 20% of total power generation by 2037, but that power generation is not expected to connect to the state grid until 2031.

The new quota for solar power is expected to account for half of the renewable power capacity in the plan.

By 2037, the PDP projects renewable power generation of 18,107 megawatts, with total generation of 73,211MW.

Solar power generation is expected to be 12,600MW by 2037, including household rooftop panels and floating solar panels at Electricity Generating Authority of Thailand dams.

Biomass resources have a quota of 3,376MW, while biogas is allotted 546MW. Wind is projected to have 1,485MW and industrial waste 44MW.

Policymakers have promoted biomass and biogas generation for three decades and many projects are connected to the state grid now and are at nearly full capacity, leaving room for growth.

“Although both biomass and biogas are generated from plentiful local agricultural resources, there is no room for operators to expand,” said Mr Pajon.

“There is abundant agricultural waste, but the plan emphasises importing costly wind turbines and solar panels, instead of using local resources.”

He said biomass and biogas generation offers many benefits to the local economy.

Earlier the TBTA talked with the policymakers and they agreed with the association, but they did not meet with the group when forming the PDP.

Mr Pajon said the association is calling for new regulations for burning agricultural waste because of the air quality crisis. Policymakers should set rules on use of waste in biomass power generation to solve this problem, he said.

  • Coal
  • Electricity/Power Grid
3 April 2019

 – 

  • Philippines

DAVAO CITY — Mindanao’s shift in recent years to more power generated by coal-fired plants is for now saving the southern Philippines from energy problems caused by the El Niño dry spell.

“Mindanao’s current energy mix and supply status may be able to spare Mindanao from the effects of long dry spell to our power situation,” Romeo M. Montenegro, deputy executive director of the Mindanao Development Authority (MinDA), told BusinessWorld on Wednesday.

As of April 3, Mindanao had a power reserve of 569 megawatts (MW) with capacity at 2,369 MW and peak demand of 1,800 MW, based on data from the National Grid Corp. of the Philippines.

About 70% of Mindanao’s supply is currently sourced from coal-fired plants and the rest from renewable energy, mainly from the Agus and Pulangi hydropower complexes.

In 2015, the breakdown was 49% hydro, 14% coal, 31% oil-based, and 6% geothermal. By 2017, it has tilted to 49% coal, 29% hydro, 18% oil-based, 3% geothermal, and 1% biomass.

Output from the two hydro facilities, already on the decline due to the age of the facilities, has further been affected by the prevailing dry spell.

The Lanao del Sur Provincial Disaster Risk Reduction and Management Council (PDRRMC) conducted a special council meeting on Tuesday to discuss the effects of El Niño, including the situation in Lake Lanao that powers the Agus plant.

Pili Papandayan of the Provincial Environmental and Natural Resources Office said during the meeting that Lake Lanao is now below critical level.

As of Tuesday, Lake Lanao’s elevation was at 698.45 meters above sea level (masl), lower than the 699.15 masl minimum operating level, based on the National Power Corp.’s monitoring.

The PDRRMC is set to meet again on April 4 for the comprehensive plan to address the El Niño impact.

Mr. Montenegro noted that the effect on power supply depends on the contracted supply of the power distributors.

He said those that are heavily contracted with the hydroelectric plants with “no financial flexibility to contract non-hydro sources in the interim will likely be affected.”

“It can be said therefore that the effect of El Niño, if ever, to certain electric cooperatives in Mindanao could happen on a case to case basis,” he added.

Nonetheless, MinDA continues to push for more renewable energy sources to at least have a 50-50 balanced mix with fossil fuel.

“Go renewable,” Mr. Montenegro said at the recent Water, Energy and Power Summit in Zamboanga City.

He said Mindanao’s long-term energy plan remains geared towards a secure, optimal, and sustainable system.

He said there are currently 234 renewable energy projects, mostly hydro, that are pending with the various permitting agencies.

Rehabilitation plans for the Agus and Pulangi plants also remain pending.

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