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  • Renewables
22 March 2019

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  • Singapore

SINGAPORE – Sembcorp Industries on Friday (March 22) said it is working with YCH Group on supplying its warehouses across Asia with solar power, as it announced the completion of a rooftop solar farm at YCH’s Supply Chain City flagship building.

Sembcorp will now look to power other YCH facilities with solar energy in countries such as China, India, Indonesia, Malaysia, the Philippines, Thailand and Vietnam, it said in a filing with the Singapore Exchange .

Said Robert Yap, executive chairman of logistics group YCH: “The inauguration of the solar energy system with Sembcorp marks a new milestone in YCH efforts to build on our green initiatives. We look forward to collaborating with them and leverage their smart solar energy system to power our warehouses across the region.”

Mr Koh Chiap Khiong, Sembcorp’s head of Singapore, South-east Asia and China (Energy), said: “With the successful completion of the solar energy system at Supply Chain City, we are pleased to partner YCH in helping them to provide their clients a solution which instantly cuts their carbon footprint and gives them cheaper electricity.”

The completed 2.8 megawatt peak solar farm for Supply Chain City is owned and operated by Sembcorp. Under a long-term contact, the farm will provide energy for the two million square foot building and its tenants, with surplus power being channelled to the grid.

Some 8,000 solar panels are expected to generate over 3,400 megawatt hours of green power annually, which is enough to power more than 770 four-room HDB flats for a year.

This will help to avoid about 1.5 million kilogrammes of CO2e (carbon dioxide equivalent) emissions a year, equivalent to the impact of taking almost 320 cars off the road, said Sembcorp. It will also enhance the sustainability of Supply Chain City, already a BCA Green Mark (Platinum) and US Green Building Council LEED Platinum certified building, the company added.

The solar farm is also backed by a new high-tech digital system at the Sembcorp Solar Performance Monitoring Centre housed within the same building. Using real-time tracking devices, the centralised digital platform remotely monitors the output of every single string of rooftop solar system installed at Supply Chain City as well as at all of Sembcorp’s other solar power projects in Singapore, enabling maintenance and troubleshooting teams to be swiftly deployed when needed, said the company.

Sembcorp said the completion of the solar farm is not expected to have a material impact on the earnings per share and net asset value per share of Sembcorp for the financial year ending Dec 31, 2019.

  • Electricity/Power Grid
22 March 2019

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  • Vietnam

HÀ NỘI — Although people and businesses don’t want the price of electricity and other commodities to increase, it is necessary to raise these prices to balance the economy in a multidimensional way.

The statement was made by chief economist of the Bank for Investment and Development of Việt Nam (BIDV), Cấn Văn Lực, during an online forum held in Hà Nội on Thursday.

The forum was organised after the average retail price for power was officially raised by 8.36 per cent starting on Wednesday, from VNĐ1,720 (7.49 US cents) per kWh to VNĐ1,864 (8.03 US cents), excluding value added tax.

Different pricing schemes have also been set for households and businesses. Specifically, retail prices for households now range from VNĐ1,678 per kWh to VNĐ2,927 per kWh depending on usage.

Prices rise is necessary

Previously, the input prices (coal, gas) of power generation enterprises still had the sponsorship of the State. However, since 2019, these input costs are no longer sponsored, making electricity prices increase as a necessary consequence, Lực told Việt Nam News.

The Government is also asking to move towards market mechanisms and that is a positive development, he said.

In terms of dosage, the Government and the Ministry of Industry and Trade (MoIT) have considered different factors to decide reasonable price increases, ensuring impacts on the economy, businesses and people are appropriate.

Regarding the time period, according to Lực, it is suitable because global prices, typically the price of coal and petroleum, are not increasing and not creating a large level of inflationary pressure on Việt Nam. The beginning of the year is also a time for the electricity industry to account for its business plan as well as enterprises planning to operate. In addition, this is also the time when the Government may consider adjustment steps to ensure macroeconomic stability.

On the other hand, the adjustment of other commodity prices this year must also be considered to ensure that there will be not many commodities with increased prices in a year, otherwise, it will create macroeconomic instability, Lực added.

Bạch Thăng Long, deputy general director of Garment 10 Joint Stock Company, said both people and businesses don’t want rising electricity prices because they will put pressure on businesses. However, firms are not surprised with this price increase because the information about the rise in electricity prices has been captured by enterprises since 2018 to calculate the action plan.

Adjustment must come with transparency

Economist Lực added the increase in electricity prices leads to increasing costs in production and business. Hence, it will help businesses reduce energy, raise workers’ awareness and use economical equipment to save the electricity. This is necessary for businesses in the current context to improve competitiveness in the market.

He also suggested that Government needs to eliminate cross-subsidising mechanisms for objects using electricity. At present, the industrial sectors consuming large amounts of electricity, accounting for 55 per cent of the electricity density, such as cement, iron and steel, are being compensated for electricity prices and only subject to the lowest price of 6.8 cents per kWh. Meanwhile, the electricity price for households is up to 8.7 cents per kWh.

“Currently, consumers using electricity for domestic use as well as service enterprises are compensating a certain amount for industrial production enterprises – that is unfair. When there is fairness, people and businesses will agree and are willing to pay more reasonable electricity prices,” Lực said. — VNS

Read more at http://vietnamnews.vn/economy/507549/with-latest-increase-electricity-prices-move-towards-market-mechanism.html#ibiW7dJHF5et5G6i.99

  • Renewables
22 March 2019

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  • Malaysia

Yeo Bee Yin, Malaysia’s energy and environment minister, gave a press briefing this week on the country’s renewable energy policy. She said the government is currently working on a Renewable Energy Transition Roadmap (RETR) through to 2035 that will include strategies and action plans to reach its renewable energy target of 20% by 2025. The roadmap is still in the early planning stage but a final version will be published by the end of the year, Yeo said.

The ministry has already disclosed that it is examining programs under which customers would have the option to buy 100% renewable energy from power utilities. Additionally, it is assessing the potential costs and benefits of a market for mandatory renewable energy certificates (RECs). At the moment, the REC market is purely voluntary. Lastly, the minister said that Malaysia will look into the possibility of enabling virtual net metering and peer-to-peer energy trading for solar prosumers.

The press briefing included an update on the country’s net-metering program. Last October, the energy minister announced plans to make the nation’s net-metering regime more attractive by moving to offset surplus energy fed back into the grid on a like for like basis, rather than forcing prosumers to accept a lower displaced cost for excess energy. Malaysian newspaper The Star reports that prosumers currently must pay MYR 0.50 ($0.12) per kilowatt hour for electricity, but receive only MYR 0.31 in return for their surplus energy.

In her update, Yeo claimed that the amendment has already started to bear fruit, as 500 MW of capacity has been allocated for the net-metering program. She said that thanks to a successful communications campaign, the Sustainable Energy Development Authority (SEDA) has witnessed a steep uptake in installations. Over the last two months, there have been 11 MW  of applications for the program, compared to just 18 MW over the preceding 12 months. To date, SEDA has approved 38 MW, of which 10 MW is operational.

Yeo explained that net metering has created new solar PV business opportunities in the behind-the-meter market, such as solar leasing and power purchase agreements, or a combination thereof.

The country is not just focusing on small-scale systems, however. In February, the ministry announced a third tender for 500 MW of PV.   The tender for the project — Projek Loji Jana Kuasa Solar Berskala Besar Pusingan Ketiga, or Large Scale Solar (LSS) 3 — is the third round of the country’s procurement program for large-scale PV. The project, comprising solar parks ranging in size from 1-100 MW, is expected to raise around MYR 2 billion ($490 million) of investment, the ministry said in a statement. The second LSS auction attracted 1.6 GW of proposals, with bids ranging from MYR 0.33-0.53/kWh.

  • Electricity/Power Grid
22 March 2019

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  • Cambodia

Electric power consumption has recently surpassed expectations.  The Ministry of Mines and Energy (MME) has explained that demanding more power than can be supplied has led to a nation-wide power shortage.

Electricité du Cambodge issued a statement on Monday, March 18, stating that it has reduced the supply of electricity in the Kingdom during the day in order to ensure an adequate supply at night – generally known as power cuts.

Ty Norin, secretary of state at the MME, said in a press conference held at the Council of Ministers on Friday, March 22, that the government is searching for alternative power sources to bridge the gap between supply and demand, and is fully aware that the drought is contributory to the diminished power supply. Most of the electricity in the area is generated in hydroelectric plants run with dammed up water, of which there is too little.

..

A provisional small-scale solution is the use of fuel fired generators where possible.

He went on to say: “We have partnered with developing countries and others to draw up a master plan for developing [electric] power projects.” The conference is aimed at determining the real demand for electricity.

Statistics from the MME show that in 2018 9.3 GWh – that’s 9,300 million kilowatts an hour – were consumed, which averages out to 25.5 MWh (megawatt hours) a day, and this year’s demand for power rose to 31 MWh per day.

  • Renewables
21 March 2019

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  • Philippines

Recognizing the Southern Luzon region’s vulnerability to natural disasters and the effects of climate change, a landmark Climate Challenge Summit was organized by the provincial government of Sorsogon and The Climate Reality Project–Philippines, which aimed to raise awareness among local communities on the importance of environmental conservation, sustainability and cleaner energy.

The event coincided with the first Geothermal Energy Day celebrated by the province, after Governor Robert Lee Rodrigueza recently signed Executive Order 001-2019 declaring every 5th of March as a special commemoration of the vital role that geothermal plays in the progress of the province.

The executive order recognizes geothermal energy as the “pioneer renewable energy resource in the Philippines” that can provide clean and reliable baseload power. Sorsogon is a province rich in geothermal resource and is host to the 140-megawatt Bacon-Manito (Bacman) Geothermal Project, which supplies power to the Luzon grid.

The climate summit, held at the Sorsogon State University, guested local government officials as well as stakeholders from various sectors of society in a dialogue and learning session on geothermal energy production.

We need to limit our temperature rise to two degrees Celsius, and that’s our best-case scenario. If we reach a five-degree increase, climate scientists say this will usher in the end of human civilization,” explained Atty. Allan Barcena, corporate social responsibility head of Energy Development Corporation (EDC).

“This realization led us to a decision to not invest in coal, and to provide nothing but clean, renewable and reliable power for our future. Geothermal energy is the holy grail of renewable energy technologies. Properly managed, it can supply clean and uninterrupted power—day or night, rain or shine,” he added.

The province of Sorsogon was also awarded the Allen S. Quimpo Climate Leadership for Governance Memorial Award during the 2018 Climate Reality Leadership Awards of The Climate Reality Project–Philippines due the province’s efforts to respond to the urgency of climate change. In 2017, the province declared itself off-limits to coal power through Provincial Resolution 323-2017, citing the hazardous effects of coal to both the environment and to its residents’ health.

  • Renewables
21 March 2019

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  • Myanmar

SolarHome, a solar energy startup that focusses on serving households in Myanmar, has announced that it has secured another US$1 million for equity from Trirec, an investment company that supports energy tech companies. Trirec is an existing investor in SolarHome, which makes this funding a follow-on financing that’s a part of SolarHome’s Series A round, as reported by Deal Street Asia.

Also Read: Indonesian logistics startup Kargo raises US$7.6M in seed funding round

Trirec was joined by Insitor Impact Asia, Beenext, and a group of Singapore-based family offices early last year when it invested US$4.2 million in SolarHome on a convertible note.

SolarHome was launched in 2017 seeded by fintech venture builder FORUM. With core operation in Myanmar, the company says that it has installed over 30,000 solar home systems in the country.

SolarHome is known for its Pay-As-You-Go (PAYG) solar installation for off-grid homes in Southeast Asia.

Just a few days prior to funding announcement, SolarHome announced the appointment of Greg Krasnov, the chairman and founder of SolarHome, and CEO of FORUM as the company’s CEO, succeeding Ted Martynov. It also appointed Geert-Jan ten Hoonte, a senior adviser, board member, and angel investor in SolarHome as president and COO of the company.

Just in December last year, SolarHome raised an additional US$10 million debt financing from investors including Japan-based cross border crowdfunding platform Trine.

  • Coal
21 March 2019

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  • Indonesia

Over the past year, the number of patients treated each day in the hospital unit where cardiologist Ade Imasanti Sapardan works in Indonesia’s capital has almost doubled to about 100.

Sapardan, who sees up to 150 people every week, cites worsening air pollution as a major reason for the rise in patients seeking treatment in the mega-city of Jakarta, home to 10 million people.

“People in Jakarta have bad pollution every day … everybody is not really breathing safe air,” Sapardan told the Thomson Reuters Foundation.

Half her patients suffer from symptoms linked to air pollution—like chest pains, coughing and breathlessness.

Nine out of 10 people breathe polluted air, according to the World Health Organisation (WHO), a problem that impacts more cities in Asia than anywhere else in the world.

Burning fossil fuels is a large contributor to air pollution, which kills about 7 million people prematurely each year. Green campaigners and energy experts say Asia’s growing demand for coal-fired power is one key cause of that pollution.

Coal demand outside Asia peaked in 1988 and has since fallen by a third.

During the same period, it rose 3.5-fold in Asia, now the world’s main driver of coal-power demand, according to a report published late last year by the Centre for Strategic and International Studies (CSIS) in Washington.

“Cities with the worst air pollution are all in Asia and a lot of it is to do with coal,” said Nikos Tsafos, a CSIS researcher.

“The region has such huge economic growth and potential, where the desire to bring electricity to people trumps all other concerns.”

An air quality report published by Greenpeace and IQAir AirVisual this month showed that the world’s 100 most polluted cities are largely in Asia—with India and China dominating.

Jakarta and Hanoi are the two most polluted cities in Southeast Asia, according to the report.

But while China has already curbed coal use to meet politically important smog targets, and India this year launched a nationwide anti-pollution programme, Tsafos said Southeast Asia was a “blind spot”.

Lawsuit

Like many Asian countries, Indonesia is experiencing a rise in urbanisation, population and economic growth and is scrambling to find ways to increase its power capacity.

Jakarta has about 10 coal power plants within a 100-km (60-mile) radius of the city, green campaigners said, with up to three more being planned.

Now 20 Jakarta residents are to file a lawsuit against Indonesian President Joko Widodo, backed by non-governmental organisations including environmental group Greenpeace.

They argue policymakers have not done enough to tackle air pollution in the capital and hope to force the government to move away from coal power and into renewables.

Sapardan’s medical expertise will be used in the action, which will also target the governors of Jakarta and its surrounding regions as well as the country’s health and forestry ministers.

They want a tightening of air standards, co-ordinated efforts to tackle air pollution, and recognition by the central government of the link between coal-power plants and air pollution, to force a change in power policy.

“The global trend is now to stay away from coal, but in Southeast Asia it has gone the other way, including in Indonesia,” said Tata Mustasya, climate and energy campaign coordinator at Greenpeace Southeast Asia.

“We still use coal and are expanding it to meet our power needs.”

A spokesman for Widodo, who will stand for re-election in national polls next month, was unable to provide an immediate comment, while the energy ministry did not respond to requests for comment.

Asia-Pacific consumed 75 per cent of the world’s coal in 2017, according to the BP Statistical Review of World Energy, up from 50 per cent 20 years ago.

An abundance of locally produced, cheap coal and a failure to promote alternative energy sources were key reasons for Asia bucking the global trend away from coal, energy experts said.

“We have cases in the Philippines where people are suffering respiratory diseases because of coal-power plants and coal ash from which they will never recover,” said Rayyan Hassan, executive director at the NGO Forum on ADB in Manila.

Cash flow

With many investment and development banks moving away from coal projects, financing Asia’s coal boom has been left to state-backed banks and bilateral agencies, energy experts and environmental campaigners said.

Japan ramping up its coal-power capacity after the Fukushima nuclear disaster had led to a boon in clean-coal technologies that were now being exported across Asia, said green activists, who also cited China’s Belt and Road Initiative.

“There is a narrative that says a lot of this is being enabled by the Belt and Road Initiative—that China is exporting coal technology and generation to the region,” said Tsafos.

But as renewable energy becomes more competitive, market forces will help move Asia away from coal, said Yongping Zhai, an energy expert at the Asian Development Bank (ADB) in Manila.

The ADB’s 2009 energy policy states that the bank can still consider coal projects in rare cases where the power provides energy access to the poor and uses advanced technologies.

Despite this, the ADB has no coal-power projects in the pipeline and the last coal-power project it was involved with was back in 2013, said Zhai.

Although the effects of air pollution in Asia would be felt for decades, Tsafos said calls for clean air in China had led to a reduction in coal consumption and this could now be mirrored in other parts of Asia.

“Local air pollution can be a really good agent of change,” he said. “That’s where pressure can pop up really quickly because people can see the damage but also politicians can show that they’ve delivered results.”

  • Oil & Gas
21 March 2019

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  • Vietnam

HANOI and SINGAPORE (Bloomberg) — Vietnam’s latest plans for $7.8 billion in gas-fired power projects may see the nation become one of the world’s newest liquefied natural gas importers and cut its coal use.

The Ninh Thuan provincial government on Wednesday said it met with Thailand’s Gulf Energy Development over plans to build four gas-fired plants, with total capacity of about 6,000 megawatts, as well as LNG import facilities, it said on its website Wednesday. Gulf Energy declined to comment.

“This LNG project will help replace some of the existing coal-fire power,” Hoang Quoc Vuong, Vietnam’s deputy minister of industry and trade, said by telephone. “We will definitely need to import LNG for these new plants.”

The Ca Na LNG project would bolster Vietnam’s entry into the ranks of LNG buyers, adding further demand to the fastest growing fossil fuel market, and give the cleaner-burning fuel an inroad into a nation that’s expected to drive regional coal use. A separate 3,200 megawatt project has also been proposed for Bac Lieu province, and analysts at Sanford C. Bernstein & Co. said in a report earlier this month that Vietnam is expected to join the LNG importing club in 2027 as its domestic gas reserves deplete.

To be sure, as electricity demand continues to grow at a fast pace and capacity is constrained, coal plants will run at high utilization rates to serve base load demand, according to Yun Ben Yap, a research analyst at Wood Mackenzie. That means new gas-fired power won’t displace existing or planned coal plants in Vietnam, he said.

Bright Spot

Vietnam has been seen as one of the world’s few bright spots for coal-fired power despite a broader global shift from the fuel. Coal will dominate its power sector over the next decade, making up 50.5% of generation by 2028, compared with 22.5% for gas, according to a Fitch Solutions report in February. Vietnam’s electricity demand increases by about 10% annually, according to the ministry of industry and trade.

“Increasing environmental consciousness and pollution concerns have led to a general pushback against coal,” Fitch Solutions analysts said in the report. “While Vietnam has committed to carbon emission reductions, there are limited practical alternatives for the government to meet the surge in power demand at present.”

Gulf Energy CEO Sarath Ratanavadi in December reiterated the company’s plans to invest about 150 billion baht ($4.7 billion) the next few years to build new power plants across Southeast Asia. He said at the time the company was in talks with partners for a hydro project in Laos, a gas-fired plant in Myanmar and renewable projects in Vietnam.

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