News Clipping Archive - Page 1189 of 1235

Electricity/Power Grid ,
Energy Cooperation

Energy sector faces big challenges ahead

30 November 2018

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Vietnam

HÀ NỘI — The challenges the power sector needs to overcome over the next two decades are substantial to ensure it achieves its goals to provide sustainable, clean, affordable and reliable power supply to the people of Việt Nam.

Ousmane Dione, Country Director of the World Bank in Việt Nam told the meeting of the Việt Nam Energy Partnership Group (VEPG) held in Hà Nội on Monday that one key question was how to meet future energy demand, while also complying with the Government’s objectives to reduce greenhouse gas (GHG) emissions and meet its climate change targets. That of course refers to the contentious issue of the role of coal in the future energy mix.

“Another challenge is how to mobilise the large investment requirements, estimated at around US$8 billion annually to meet fast growing power demand. Việt Nam Electricity (EVN) and the public sector cannot raise those funds and the private sector, both domestic and international, will need to play a more prominent role in power sector financing,” he said.

He added that Việt Nam has been a global success story in developing the power sector over the last few decades. The success of the power sector has been a key contributor to Việt Nam’s socio-economic development and the country’s high and sustained economic growth, excellent performance in terms of poverty reduction and well-being of its citizens. Two areas need to be highlighted in the success story – one is rural electrification and the other power sector reform.

“The World Bank is fully supportive of Việt Nam’s energy development agenda, including the 5 key priorities discussed at today’s high-level meeting. We are committed to helping Việt Nam deliver sustainable, clean, reliable and affordable energy for all, including technical and policy advice, direct investment financing, risk mitigation measures and guarantees, supporting regulatory reform, improving energy security, and helping Việt Nam meet its Nationally Determined Contributions as part of the Paris Agreement.”

Sharing the sentiment, Ambassador Bruno Angelet, Head of the European Union delegation to Việt Nam added: “The EU is very committed to helping Việt Nam’s transition from brown to green energy, while also ensuring access to affordable energy for all and protecting Việt Nam’s competitiveness. We are extremely proud that the Việt Nam Energy Partnership Group could deliver, within one year, recommendations for comprehensive policy reform. They are the result of intense consultations with the Government, the private sector, academia and civil society. Our strong wish is that our recommendations will be embedded in Việt Nam’s strategic policy papers and will be translated into concrete policy actions.”

image: http://image.vietnamnews.vn//uploadvnnews/Article/2018/11/26/VPEG73671356PM.jpg

Experts discuss challenges and policy recommendations for Việt Nam’s energy sector. — VNS Photo Vũ Hoa

The highlight of the event was the presentation of policy recommendations by the VEPG’s Technical Working Groups (TWG) aimed at boosting the development of Việt Nam’s energy sector in five key priority areas, namely Renewable Energy, Energy Efficiency, Energy Sector Reform, Energy Access and Energy Data and Statistics. Each TWG delivered and discussed a set of concrete policy recommendations, developed through extensive research and dialogue by TWG members over the past year.

Đặng Hoàng An, Deputy Minister of Industry and Trade, said Việt Nam has been in a process of deep international integration. This calls for building a national energy sector under market mechanisms that is highly integrated and adaptable.

To ensure that, Viet Nam needs to effectively promote the combination of internal and external resources, in which the internal force is a key element, An said.

He added that in the process of promoting investment and development of the energy sector, it was necessary to thoroughly study and consider international and domestic contexts and trends as well as domestic potential to building development plans to ensure sustainability of the sector.

“Today, we received nearly 40 policy recommendations which are the results of the work of VEPG’s five Technical Working Groups. These policy recommendations are valuable and truly relevant to the policy development of Việt Nam’s energy sector,” he said.

The VEPG was established in June 2017 in an agreement between the Government of Việt Nam and Development Partners with the purpose of strengthening mutual partnerships and better aligning and coordinating external support to the energy sector in Việt Nam. — VNS

Coal ,
Electricity/Power Grid

Vietnam’s power sector needs $150 bln boost by 2030 -World Bank official

30 November 2018

–

Vietnam

HANOI, Nov 27 (Reuters) – Power-hungry Vietnam, one of Asia’s fastest-growing economies and a production hub for global companies such as Samsung Electronics, needs to raise up to $150 billion by 2030 to develop its energy sector, according to a World Bank official.

Vietnam has been struggling to develop its energy industry due to a lack of state funds. The Southeast Asian country’s hydropower potential has almost been fully exploited, oil and gas reserves are running low, and Vietnam recently went from a net exporter to net importer of coal.

“The financing requirements of the sector have been huge,” World Bank country director Ousmane Dione said in a speech to Vietnamese government officials and energy partners on Monday, a copy of which was reviewed by Reuters on Tuesday.

“Since 2010, the sector invested about 80 billion dollars in generation, transmission and distribution and between now to 2030 another 150 billion dollars needs to be raised,” said Dione, who added that electricity demand in Vietnam will grow by about 8 percent a year for the next decade.

Vietnam had difficulties raising funds for its energy sector. Public debt in the country is close to a centrally-mandated ceiling of 65 percent of gross domestic product.

Nguyen Van Binh, head of the ruling Communist Party Central Committee’s Economic Commision, said the issue was an “extremely difficult problem”, in a government statement about Monday’s meeting.

Vietnam should allow the domestic and private sector to play a “more prominent role in power sector financing” to raise funds outside its state budget, said Dione of the World Bank.

He said Vietnam needed to increase its renewable energy usage, and introduce a competitive power market, where higher electricity prices can attract private investment in energy.

Prime Minister Nguyen Xuan Phuc told Reuters in an interview earlier this year Vietnam plans to more than triple the amount of electricity it produces from renewable sources and push for a 26 percent increase in household solar energy usage by 2030.

Vietnam has not been able to reduce its reliance on coal energy, which will account for 53 percent of all energy generated in the country by 2030, according to its trade ministry.

Another challenge for the sector is “complying with the government’s objectives to reduce greenhouse gas emissions and meet its climate change targets,” Dione said.

“That of course refers to the contentious issue on the role of coal in the future energy mix.” (Reporting by Khanh Vu; Editing by James Pearson and Gopakumar Warrier)

Others

Southeast Asia’s electric car revolution

30 November 2018

–

ASEAN

Driving attitudes across the region has changed dramatically with the introduction of electric vehicles into the personal mobility market. As more and more consumers become environmentally conscious, the demand for electric vehicles has seen an uptick.

A report by Bloomberg New Energy Finance (BNEF) indicates that in 2040, 54 percent of cars sold will be of the electric variety, accounting for one third of the global car fleet. This is a revision from the previously predicted 35 percent. Electric vehicles are also seeing a huge jump in demand globally. In 2016, sales of electric vehicles worldwide doubled from the previous year, surpassing the two million units mark.

The Southeast Asian region, home to a population of 640 million should rightly be part of this technological upheaval. According to a report by the International Renewable Energy Association (IRENA) the region could have 59 million electric two- to three-wheelers and 8.9 million electric four-wheel vehicles by 2025. This translates to an estimated 20 percent of passenger automobiles on the road.

Reducing carbon footprint

The bustling city centres of Southeast Asia are known for – among other things – their horrendous traffic conditions. Plumes of smoke and smog from the exhaust pipes of vehicles, especially during peak traffic hours are a severe cause for concern for the environment in the long run.

Jakarta, the most populous city in Southeast Asia has one of the worst air qualities in the region thanks to gasoline and diesel run vehicles. A study by the Faculty of Public Health at the University of Indonesia found that 58 percent of all illnesses among people living in the city were related to air pollution.

With the demand for automobiles increasing, this situation could get worse. It is estimated that vehicle ownership across the region is expected to grow more than 40 percent by 2040.

Electric vehicles could however change all that. Such vehicles, 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.

Source: Various

Going electric

According to a survey by Frost and Sullivan, there have been promising signs that electric vehicles are gaining popularity amongst road users in Southeast Asia, especially among young individuals below the age of 40.

A majority of those interested in purchasing electric vehicles come from Thailand, the Philippines and Indonesia.

To aid in the adoption of electric vehicles, governments in the region have also been enacting their respective policies and roadmaps.

Countries like Singapore and Thailand are well ahead of the curve in terms of electric vehicle development.

Singapore has been embarking on its electromobility journey since 2011 as a key strategy to mitigate carbon emissions from the transportation sector. In December 2017, the island republic launched its first electric vehicle sharing service with 80 cars and 30 charging stations.

To promote the use of electric vehicles, the Thai government drafted the ‘Electric Vehicle Promotion Plan for Thailand’ under its Thailand Alternative Energy Development Plan 2012-2021. As a result, Thailand went from having 60,000 hybrid passenger cars and 8,000 battery electric motorcycles that were registered in 2014 to a total of 102,308 hybrid cars and 1,394 battery electric vehicles.

Others like Indonesia, Vietnam and the Philippines are showing promise too.

Indonesia, set a national roadmap for the development of its automotive industry earlier this year and targets 2.1 million units of 2-wheeler electric vehicles like electric motorcycles and scooters and 2,200 units of 4-wheeler vehicles by 2025.

Vietnam’s first car manufacturer, Vinfast is also planning to release EV’s of its own. Vinfast announced that it will produce 250,000 electric scooters annually and is planning to release its own electric car in the coming years.

In the Philippines, the Electric Vehicle Association of the Philippines (EVAP) set a target in 2014 to have one million electric vehicles on Philippine roads by 2020. The association has also worked with the government to develop an Electric Vehicle Roadmap.

The Philippine Department of Energy (DOE) has also collaborated with the Asian Development Bank (ADB) to introduce electric tricycles (e-trikes) powered by lithium-ion battery technology. The initiative aims to reduce the transportation sector’s annual petroleum consumption by 2.8 percent and cut carbon dioxide emission estimated at 259,008 tons annually by shifting to 100,000 e-trikes.

With such rapid development and policy focus on electric mobility, electric vehicles could well be the future of transportation in the region. As investments and demand in this area grow, coupled with comprehensive government policies in place, we can possibly see planet-saving electric vehicles on our roads in the near future.

Others ,
Renewables

Philippine regulator opposes net metering expansion

30 November 2018

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Philippines

The Philippines’ Energy Regulatory Commission (ERC) has said the removal of the 100 kW cap for solar installations under net metering would be difficult for the nation’s grid to accomodate. Meanwhile, a proposal to raise the threshhold is being discussed in the country’s Senate.

The Department of Energy (DOE) has issued a statement announcing that the country’s Energy Regulatory Commission (ERC) is not in favor of removing the 100 kW size limit for solar power generators installed under net metering.

This could have an adverse effect on transmission lines, which may not be able to accommodate injections of power beyond that limit, said the ERC.

The regulator’s head, Sharon O. Montañer also said that if a bill aimed at removing the above-mentioned cap, currently being discussed in the Senate, were to pass, a new study on the grid’s ability to absorb new output would be necessary.

“With the proposed incentives under the bill, this is expected to result in a drastic increase in solar energy being exported to the grid,” she said, adding, “A thorough grid, system, and distribution impact study would help determine how much in exported capacities the grid may accept without unduly compromising power supply stability.”

The filing of Senate Bill No. 1719 was initiated by Grace Poe, a Filipina senator and businesswoman. “Unlike other power plants, whether fossil-based, hydro, wind or solar farms, rooftop solar does not require land conversions, because it uses what is usually an underutilized and already existing resource – the roof,” she said at a recent hearing at the Senate committee on energy.

“Complete solar photovoltaic systems or solar technology can be bought off-the-shelf and could be easily installed in a few hours. Larger systems may take a few days. No other technology, renewable or otherwise, could match the convenient installation attributed to rooftop solar,” she continued.

The Philippines introduced a net metering scheme for solar systems up to 100 kW, in 2014. However, just 10 MW of rooftop PV systems have been connected to the country’s grid since then.

In a recent report, the U.S.-based Institute for Energy Economics and Financial Analysis (IEEFA) explained the reasons for this failure: administrative and financial hurdles are preventing more electricity consumers from installing rooftop arrays, as well as the resistance of local utilities.

The report also found that the pricing methodology adopted by the ERC has not been improved since 2013. The methodology, based on the amount of electricity exported to the grid, undervalues solar rooftop generation, according to the IEEFA experts, which also said that the 100 kW limit is anachronistic.

Bioenergy

Philippines biogas facility to produce 50,000MWh energy from fruit waste

30 November 2018

–

Philippines

Metro Pacific Investments inked a deal with Dole Philippines for the $19.05m project.

The Philippines’ Metro Pacific Investments Corporation (MPI) inked a deal with agricultural producer Dole Philippines, Inc. (DPI) to design, construct, and operate facilities that will process fruit waste and produce around 50,000MWh of biogas. MPI has set aside $19.05m (Php1b) for the project.

According to an exchange announcement, the biogas facilities will complement DPI’s existing operations by processing organic fruit waste from its Surallah and Polomolok facilities in South Cotabato, Mindanao. The biogas energy will be used by DPI for power generation and fossil fuel substitute.

MPI’s subsidiary Metpower Venture Partners Holdings, Inc. (MVPHI), through Surallah Biogas Ventures Corporation (SBVC), signed the agreement with DPI. “The project serves as MPI’s first foray in bio-energy and will serve as a catalyst for a highly scalable waste-to-energy platform it plans to build in the Philippines through MVPHI,” MPI said.

The project is expected to trim CO2 reduction by approximately 100,000 tonnes per year.

Bioenergy

Govt plans to double B20 biodiesel consumption next year

30 November 2018

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Indonesia

The government plans to double the consumption of 20 percent blended biodiesel ( B20 ) amid the declining price of palm oil on the global market.

Energy and Mineral Resources Ministry Renewable Energy Director General Rida Mulyana said on Monday that the B20 consumption target for next year would be 6.2 million kiloliters.

“We expect there will be an increase in the consumption of B20 by 3 million kiloliters [next year],” he said as quoted by kompas.com, adding that the state-owned electricity company alone was expected to consume about 700,000 kl of B20 next year.

“The consumption increase is expected to help boost the crude palm oil [CPO] price and help oil palm growers.”

As one of the word’s largest CPO producing country, Indonesia was hit hard by the sudden decline in the commodity’s price to around US$420 per ton from around $530, last week.

In response, the government has temporarily removed the export levy that was usually charged by the Indonesian Oil Palm Estate Fund (BPDP-KS) for replanting.

The government introduced the mandatory use of B20 in early September as part of its efforts to reduce crude oil imports that have contributed to the widening trade deficit and current account deficit. (bbn)

Energy Cooperation

Pence in Southeast Asia: Ways forward for U.S.-ASEAN cooperation on infrastructure development

30 November 2018

–

ASEAN

Vice President Pence’s speeches in Singapore and Papua New Guinea in mid-November not only reaffirmed Washington’s commitment in the Indo-Pacific, but also articulated U.S. economic strategy toward the region more generally. He said, among other things, that Washington will seek to reform U.S. development finance institutions and create a U.S.-ASEAN Smart Cities Partnership. While such progress is laudable, much remains to be done to move forward U.S.-ASEAN cooperation on infrastructure development.

A Broader U.S. Indo-Pacific Strategy

Speaking at the 6th U.S.-ASEAN Summit in Singapore on November 15, Pence reassured regional states of America’s commitment, stressing that ASEAN is Washington’s “indispensable and irreplaceable strategic partner.” He added: “We recognize that our interests are intertwined and our visions are truly the same.” He also reiterated the Trump administration’s Free and Open Indo-Pacific strategy, which envisages an inclusive region that respects the “sovereignty of our nations and the international rules of order” and where “empire and aggression have no place.” Touching on the strategy’s economic components, the vice president said they include Washington’s measures to spur trade, private investment, and infrastructure across the region.

He further articulated these elements at the APEC CEO Summit on November 17, where he echoed President Trump’s remark at that venue last year that the United States will seek bilateral trade agreements with Indo-Pacific nations in line with “the principles of fair and reciprocal trade.” The United States furthermore seeks to promote private sector investment as well as sustainable infrastructure development, Pence said. In a veiled jab at China’s development lending practices, Pence said that the U.S. approach will not “drown our partners in a sea of debt. We don’t coerce or compromise your independence.”

Since President Trump unveiled Washington’s plans regarding regional infrastructure development at the APEC CEO Summit in November 2017, the United States has taken measures to realize them. Pence announced the creation of a U.S.-ASEAN Smart Cities Partnership, which aims to catalyze American investment in digital infrastructure, spur growth and development, and strengthen security in Southeast Asia. This partnership is well-received by Southeast Asian nations as it provides additional proof of the Trump administration’s Indo-Pacific strategy.

Another case in point is the recently passed BUILD (Better Utilization of Investments Leading to Development) Act. This legislation heightens Washington’s connectivity assistance in the Indo-Pacific region by creating the U.S. International Development Finance Corporation (IDFC) and folding under it the activities of several American development finance mechanisms, including the Overseas Private Investment Corporation, USAID’s Development Credit Authority, and USAID’s Office of Private Capital and Microenterprise. The law also allows IDFC “to make equity investment, a doubling of the contingent liability ceiling to $60 billion.” Overall, the Partnership is seen as another tangible outcome of Washington’s Indo-Pacific strategy.

Towards Better U.S.-ASEAN Cooperation on Infrastructure Development

Going forward, much needs to be done to further enhance collaboration on infrastructure development between Washington and Southeast Asian countries. For example, although the U.S.-ASEAN Smart Cities Partnership is laudable, it is not yet clear exactly how it will be implemented in ways that complement ASEAN’s agendas, namely the ASEAN Smart Cities Network (ASCN). Launched at the 32nd ASEAN Summit in April, ASCN strives to achieve smart and sustainable development by leveraging technology to provide public services, address urbanization-related challenges, and improve citizens’ quality of life. ASCN also welcomes non-ASEAN members’ assistance as it seeks to “secure funding and support from ASEAN’s external partners.” Therefore, Washington and Southeast Asian policymakers should explore modalities for providing financial and other kinds of assistance to ensure that ASCN’s objective is realized.

Also, Washington and ASEAN should think about how to cooperate on sustainable development, as it will be next year’s ASEAN theme. Thailand, which will formally assume the organization’s chair on January 1, 2019, unveiled the theme of “Advancing Partnership for Sustainability,” which prioritizes achieving sustainable development in several fields ranging from security to economy. This begets opportunities for the United States and Southeast Asian nations to continue their collaboration. For instance, in 2016 Washington coined U.S.-ASEAN Connect initiative to augment U.S. economic engagement with Southeast Asia in the realms of business, energy, innovation, and policy. Business Connect aims to boost commercial ties among American and Southeast Asian enterprises in infrastructure development and information and communication technology. Energy Connect supports ASEAN’s power sector by leveraging sustainable and innovative technologies. Innovation Connect aspires to create an ecosystem encouraging future innovators and entrepreneurs. Policy Connect seeks to help ASEAN economies realize the regulatory environment for growth, trade, and investment. This scheme has the potential to develop further. Hence, American and Southeast Asian officials should jointly explore how to create synergies between U.S.-ASEAN Connect and ASEAN’s sustainable development programs.

Moreover, the United States should participate in policy discussions hosted by the ASEAN Centre for Sustainable Development Studies and Dialogue (ACSDSD) slated to be established in Thailand next year. The mechanism will support the implementation of sustainable development projects and foster dialogues among ASEAN and its development partners (ASEAN’s dialogue partners, regional organizations assisting ASEAN on economic and infrastructure development, and Germany). Joining the discussions would not only enable the United States to find additional synergies among its projects and those implemented by ASEAN, but also keep Washington informed about other partners’ development agendas. Knowing the latter can help Washington better coordinate with non-ASEAN players to avoid wasting resources. For instance, uncoordinated efforts may result in different players providing capacity training programs on overlapping sustainable development topics. In short, by engaging ACSDSD, Washington, Southeast Asian states, and other stakeholders can find opportunities to jointly enhance complementarities and diminish competition among their initiatives.

Engaging in all of the above would benefit both regional states and Washington. U.S. assistance would enhance transnational supply chains, which will in turn increase market opportunities for U.S. businesses. It will also further tighten U.S.-ASEAN ties and elevate U.S. leadership in these areas. Countries in Southeast Asia, for their part, stand to benefit from U.S. cooperation, support, and leadership in the region. Working together yields a win-win.

Renewables

Thailand leads the SEA region for solar development

30 November 2018

–

Thailand

Thailand is the regional leader in total installed renewable capacity in Southeast Asia.The latest Alternative Energy Development Plan (AEDP) 2015-36 sets a target for renewables to account for 20% of generation by 2036.

It was the first country in SEA to implement a feed-in premium intended to spur investment and development of renewable energy projects.

Thailand’s power market is partially liberalized, with the generation sector opened up to the participation from private players.

Thailand has achieved 100% electrification. In the 2015 PDP, total electricity demand is Fundamentals forecasted to increase at an average growth rate of 2.68% in the period 2014-36.

Stimulated by the attractive feed-in premium, also known as the ‘adder’, introduced in 2007, renewable energy capacity has grown significantly. Between 2010 to 1H 2018, asset financing for renewable projects totaled $9.7 billion.

Developing Nations assume mantle of global clean energy leadership

Since 2010, developing countries have collectively accounted for a larger share than wealthier countries of clean energy asset finance, a category that includes capital for wind, solar, geothermal, biomass and small hydro projects.

News Clipping

A Broader U.S. Indo-Pacific Strategy

Towards Better U.S.-ASEAN Cooperation on Infrastructure Development

Developing Nations assume mantle of global clean energy leadership

Driving down clean energy costs

Clean energy dollars are flowing

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