News Clipping Archive - Page 1194 of 1232

Renewables

Malaysia to tender 500MW of solar projects in January 2019

22 November 2018

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Malaysia

The projects, worth $477m, are an addition to the projects that will produce 958MW by 2020.

Malaysia will tender $477m of solar projects with a capacity of 500MW through its Large Scale Solar (LSS) Programme 3 in January 2019.

Minister Yeo Bee Yin shared that the projects are part of the ongoing LSS projects that will produce 958MW of electricity between the end of this year until 2020.

The Star also reported that the projects came under the purview of Sustainable Energy Development Authority (SEDA) and were in line with the 20% renewable energy target for the nation by 2020.

Other renewable energy projects will be launched under the feed-in-tariff programme (FIT) next year to produce 114MW of electricity. About 74MW would come from small-scale hydro projects, 10MW from biomass, and 30MW from biogas.

Renewables

DoE order identifies sources of Renewable Energy Fund

22 November 2018

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Philippines

The Department of Energy issued the guidelines for the operationalization of the Renewable Energy Trust Fund that will be used for the research, development and promotion of renewable energy sources. The RE fund, according to Department Order 2018-10-0018, will be obtained from the emission fees collected from power generating companies under the Philippine Clean Air Act, 1.5 percent of the net annual income of the Philippine Charity Sweepstakes Office, 1.5 percent of the net annual income of the Philippine Amusement and Gaming Corp. and 1.5 percent of the net annual dividends remitted to the national treasury by Philippine National Oil Co. and its units.

Other sources of the fund include grants, contributions, donations which will tax deductible, 1.5 percent of the proceeds of the share of the government collected from the department and use of indigenous non-RE sources, any revenue generated from the utilization of the RETF and proceeds from the fines and penalties imposed under Republic Act No. 9513.

Renewables

ADB offers solutions for green finance in Vietnam

22 November 2018

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Vietnam

Considering the major barriers to financing renewable energy (RE) projects in Vietnam, researchers at the Asian Development Bank (ADB) have recommended the Government establish more conducive conditions for private investment and strengthen the domestic funding environment through a functional financial market.

Vietnam is a potentially rich country with abundant sources of RE, such as wind power, solar power and biomass, which remain substantially untapped, the bank’s researchers stated in their working paper, titled, “Green Finance in Vietnam: Barriers and Solutions,” released on November 12.

Despite the advantage of finding funding sources for RE projects, they noted that many hindrances still exist. The low-regulated price of electricity makes it difficult for RE projects to be profitable, considering the uncertainty of the creditworthiness of the State-owned Vietnam Electricity (EVN), which dominates the local electricity industry.

Moreover, the underdeveloped financial system lacks the capacity to deliver long-term capital, and the banking system has weak competence in performing green credit appraisals. Based on the existing challenges, the authors of the paper have made some recommendations.

Revising energy price policy

The authors pointed out that the artificially low electricity price in the domestic market is one of the most unattractive criteria for the participation of the private sector in the RE industry.

Therefore, they proposed the Government revise the energy pricing to make it more reasonable and offer a greater chance for bankable renewable projects.

Besides this, the Government should have a stronger commitment to creating market-oriented pricing that would reduce the demand for coal, compared with cleaner-burning natural gas and other alternative energy sources.

The paper cited a 2016 report from the World Bank as saying that the energy price should increase by some 10% per year rather than reflecting the inflation rate with an annual average of under 5% to guarantee financial sustainability for EVN and should create an appropriate energy price to attract investment.

Reforming Vietnam’s electricity pricing and cutting subsidies for fossil fuel technologies will also enable more investment in RE technology and allow them to compete equally in the medium term.

The authors recommended the Government revise upward the feed-in tariffs – referring to the price of electricity sold to the national grid – for renewable energy-generation projects, as an adequate feed-in tariff could encourage investment from the private sector.

Reforming fiscal policy to discourage CO2-intensive sectors

According to the researchers, one of the primary solutions is to design a carbon tax system, where the taxes collected will finance green energy technologies. This fiscal policy would be beneficial in discouraging carbon dioxide emissions and creating a funding source for renewable energy projects across the country.

The subsidies for fossil fuel in Vietnam are expected to exceed US$540 million by 2025 and US$2.56 billion by 2030. Thus, it is important to secure an adequate financial source based on the revenue from taxes and fees derived from fossil fuel consumption and generation to compensate for the expenditure.

For instance, the Government could consider imposing a carbon tax of US$5 per ton on fossil fuels such as coal, oil products and natural gas, based on their consumption levels to create revenue for the renewable energy development fund to invest in RE projects.

The authors also proposed the Government develop a wide range of financial vehicles to facilitate long-term financing and risk mitigation. To attract more private sector involvement in green energy development, it is necessary to enhance the functions of the domestic financial market, especially through a number of critical areas.

Their proposed measures include developing the domestic bond market as a basis for the green bond market for clean energy projects, as well as building and developing investment funds and the venture capital market for seed capital for RE development.

Others mentioned enhancing the effectiveness of the execution of a credit guarantee scheme to provide more concessional loans and increase access to finance for RE projects, as well as green small and medium-sized enterprises; building up credit rating agencies with a high capacity to conduct credit appraisals for energy projects; and strengthening the capacity of financial and banking institutions to fund RE energy projects through effective and efficient lending appraisals.

Oil & Gas

Amid oil price scare, minister says Malaysia not too dependent on crude revenue

22 November 2018

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Malaysia

KUALA LUMPUR, Nov 16 — Minister of Finance Lim Guan Eng insisted today that Putrajaya’s finances will not be affected if oil prices drop.

This comes amid concerns over the commodity’s near-term prospects as uncertainties dog the global economic outlook for next year.

Oil accounts for up to 14 per cent of next year’s Budget revenue projection but Malaysia had recently weathered a severe six-month gas supply disruption that took a big toll on revenue, which Lim said reflected the economy’s resilience against any external shock.

The Bagan MP pointed to the country’s mature domestic financial market and political stability as the buffer.

The Industrial Production Index saw the overall index on average grow just 2.2 per cent year-on-year (YoY) in the May-September period, while the mining sub-index contracted by 5.3 per cent YoY on average.

The same supply shock is expected to continue until the middle of next year.

“Given the limited benefits and the less than expected revenue received by the Federal Government from rising energy prices so far, the continued economic resilience

proves that Malaysia is not as dependent on energy prices as in the past,” Lim said in a statement.

Gas exports took a major hit from the second quarter of this year following a critical production breakdown in Kebabangan gas field in Sabah, directly affecting GDP growth and petroleum income from tax revenue, Lim said.

Natural gas production, on the other hand, contracted by 10 per cent in the second quarter followed by a 3 per cent contraction in the third, based on official estimates Lim provided. Crude oil and condensates production contracted by 2 per cent in the same period.

As a result, second- and third-quarter revenue from petroleum-related taxes contracted by 11 and a whopping 27 per cent respectively.

Lim said major repairs and assessment works are still ongoing and production is only expected to return to full capacity by the middle of next year at the latest.

Drastic fluctuations in oil prices in recent weeks have prompted analysts to speculate a possible Budget revision although Putrajaya has maintained an optimistic outlook, assuring concerned investors of the country’s “strong fundamentals”.

“Malaysia has a well-diversified economy with 23 per cent of its GDP contributed by the manufacturing sector and 55 per cent by the service sector,” Lim said today, reiterating past statements.

“Mining-related activities form only 9 per cent of the GDP.”

The minister then said Malaysia should not be compared to Saudi Arabia, where mining makes up 25 per cent of the economy.

“It is inappropriate to compare the two countries side-by-side given the stark difference between the two economies,” he said.

Brent crude oil futures were at US$67.49 (RM282.86) per barrel at 0747 GMT, up 87 cents, or 1.3 per cent from their last close, according to Reuters data.

US West Texas Intermediate (WTI) crude oil futures were at US$56.96 per barrel, up 50 cents, or 0.9 per cent.

But prices were mainly supported by expectations the Organisation of the Petroleum Exporting Countries (Opec) would start withholding supply soon, fearing a renewed rout such as in 2014 when prices crashed under the weight of oversupply.

Others ,
Renewables

Power Surge

22 November 2018

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Thailand

In the past few months, Thailand has seen a rapid growth in independent solar power producers that are using blockchain-enabled technology to trade electricity between themselves. Blockchain, the distributed ledger technology that underpins bitcoin currency, offers a transparent way to handle complex transactions between users, producers, and even traders and utilities. It has been revolutionising finance by bringing about decentralisation, and in countries like Thailand, blockchain is enabling households connected to microgrids to conduct peer-to-peer transactions, buying and selling surplus electricity to each other instead of through traditional providers. According to media reports, a growing number of Thai companies are using blockchain to help home-owners trade electricity from their own rooftop solar systems. Among them is a blockchain-linked solar power system in the capital of Bangkok that is among the world’s largest peer-to-peer renewable energy trading platforms using the fast-evolving technology, reports Reuters. The system, offered by a subsidiary of state-owned oil refiner Bangchak, real estate developer Sansiri, and an Australian blockchain company called Power Ledger, has a total generating capacity of 635 KW that can be traded via Bangkok city’s electricity grid between a mall, a school, a dental hospital and an apartment complex.

The World Energy Council has predicted that this kind of decentralised energy will grow to about a fourth of the market in 2025 from 5 percent today, according to Reuters. Thailand, Southeast Asia’s leading developer of renewable energy, aims to have it account for 30 percent of final energy consumption by 2036. As a part of this, the energy ministry is encouraging community renewable energy projects to reduce fossil fuel usage, and the regulator is drafting new rules to permit the trade of energy. “Thai regulators have been quite innovative and supportive of new technological advancements in an effort to implement the Thailand 4.0 initiative which is designed to support the development of ICT infrastructure, financial technology and to bolster online security,” says Nopamon T. Intralib, an associate at Thai law firm Chandler MHM. “This is largely because Thai regulators are aware that a favourable and sound legal and regulatory framework is the pillar supporting the development of the country’s growth in this space.” “Thailand 4.0 is now materialising through incentive programs, and a focus on making Thailand more attractive for investors in ICT industries,” Nopamon adds. “In correlation with Thailand 4.0, blockchain technology is a significant part of the growth of a global digital economy.”

REGULATORY ISSUES

Nopamon notes that currently, Thai regulators have not issued any regulations to address or regulate blockchain-powered peer-to-peer (P2P) electricity generation and distribution. However, that the Metropolitan Electricity Authority has allowed access to its network in the abovementioned Bangkok pilot project. “The Energy Regulatory Commission is closely monitoring this trial to determine feasibility, further implementation, and applicability of such systems,” Nopamon says. “The largest challenges to increased implementation are the lack of regulations in place for blockchain P2P power generation, and somewhat limited information being available to players interested in possible investment regarding what those regulations will entail,” she adds. “Available information suggests that the Electricity Generating Authority of Thailand (EGAT) may require fees from power producers trading on a P2P platform.” Nonetheless, Thai regulators understand that the legal framework must encourage innovation and as such, many public hearings are being conducted for the new draft laws, says Nopamon. “At the same time, the private sector is encouraged to consult and share information and understanding regarding new technology and the potential impact of related developments on these draft laws and regulations,” she notes. “There are also those who view that the lack of regulations may enable more experimentation of new products without legal barriers at such an early stage in the development process.” Threenuch Bunruangthaworn, executive partner, and Panwadi Maniwat, senior associate, at ZICO Law say that as the government is set to allow the private sector to sell the electricity by bypassing EGAT, it will be losing out on revenue from what was previously a monopoly business. “The government will put some regulations in place, with electricity providers needing to meet some requirements if they want to compete,” they say. “Solar power producers will probably need a retail license from the authorities, which means that they will need to meet some criteria. They will probably need to report the amount of power they sell and the fees they charge, on the basis of which they will have to pay fees to the authorities.”

LAW FIRMS INVOLVED

Nopamon of Chandler MHM says that the regulatory landscape in Thailand is no longer reactively addressing the development of new, digital investment opportunities, and industries. “Certain industries have been faster than others in development of laws and regulations to address new technology – such as financial institutions and start-ups. For example, certain products and projects can be experimented with under the regulatory ‘sandbox’ environment,” she says. The energy industry in Thailand appears to be the next industry interested in changing how power generation and distribution is managed, she adds. “Chandler MHM has had a robust renewable energy practice for decades and has close ties with key regulators. As with any emerging market, the most important aspects for maintaining the best position possible for assisting clients, is to continuously be aware of new laws, regulations, and more importantly, to have the background and capacity to advise on how regulators may apply and interpret these laws and regulations. This is also applicable to an evolving energy market,” says Nopamon. Threenuch and Panwadi Maniwat of ZICO Law say that normally advise developers in real estate projects, assisting them in obtain the relevant licenses to operate the project. “For these solar trading projects, you might need to acquire technology from a foreign country, and clients will need some help in dealing with foreign entities.” They add that they also expect to work with Board of Investment and assist clients in applying for BOI certificates for foreign investors and foreign operators that make investments into this industry, so that these clients can obtain the appropriate foreign registration and licenses to do business.

Energy Efficiency

Gaming to help cut electricity usage

21 November 2018

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Singapore

The rising cost of electricity sends an important message that the availability of electricity should not be taken for granted (Electricity tariffs to rise by 2.1% for Oct to Dec; Sept 30).

As a carbon-based economy, Singapore requires more energy as it continues to prosper, while emitting a large amount of carbon dioxide in the process. Green technology can produce clean energy with little to no carbon footprint. However, we cannot solely rely on green technology as it is simply insufficient.

One solution could be the emerging concept of “eco-gamification”, which leverages the principles of gaming to engage people in activities where engagement has been traditionally difficult to achieve. One example is pro-environmental action.

Opower is a software company that provides a customer engagement platform for utilities.

Research conducted by Opower shows that moral suasion and financial incentives do not motivate people to act and use less electricity. Rather, social pressure can be a much stronger motivating factor.

Opower developed a mobile app that works on the idea of a social challenge. By constantly reminding users how much electricity their neighbours are using, it has proven to be very effective in reducing energy consumption.

These forms of gamification could be applied to other resources as well, such as water.

Many of us are practical citizens. We look forward to reducing costs.

Why not save the environment while reducing our utility bill?

Perhaps, home owners could be made to pay their utility bills via the app. With the rising cost of living, consumers will be more inclined to match their neighbour’s electricity consumption.

Energy use is driving climate change, and it is up to us to stop it.

Others

Singapore Brings Environmental Revolution Through Blockchain

21 November 2018

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Singapore

Singapore became one of the first countries to implement the blockchain technology for its environmental concerns. The Singapore Power (SP) Group was responsible for setting up the decentralized Energy system in Singapore. The creator of the utility is of the belief that an absence of any centralized form of entity in the Energy Trading will lead to a more convenient and transparency in the Energy sector.

Renewable Energy Certificate (REC) is the trading tender on this blockchain. One REC is equivalent to one unit of green energy produced by solar and wind power. To run a business, one needs to have a certain number of ‘Green Points,’ companies buy these RECs to balance out their non-green energy production. It is just like Carbon trading around the world, but without a centralized system to cut the middleman.

How Is Renewable Energy Certificate (REC) traded on the Blockchain?

Let us understand how REC works in this system more efficiently. Suppose, you want to open a restaurant in Singapore, but to do that your carbon footprint or the amount of carbon produced by you should be balanced out by buying REC or green tokens. The minimum level of carbon released or its equivalent in REC is fixed by the blockchain protocol. Thus no one can bribe their way into the system. They would only be able to run their restaurant if their carbon footprint is balanced out by the REC.

SP group CEO Wong Kim Yin says,

“A consumer in Singapore who wishes to buy green energy can now, through blockchain-powered REC trading, purchase a REC from a hydro-producer based in Laos,”

Importance of Decentralized System

The Energy trading field was marred by high costs of verification for RECs which made it almost impossible to regulate the trading conveniently. But, with a decentralized form of REC, there is no confirmation required. The Power group, SP, can contact a company which is responsible for measurement of Carbon Footprint. The level of carbon produced will be set against the green tokens, so a pre-programmed setup will automatically start once you buy enough REC to negate your carbon output.

So, we can see how blockchain is beyond Cryptocurrencies and Trading Exchanges. The blockchain is a decentralized ledger system, where everyone on the network has a copy of it. Not, only that, each one can download the complete database on their hard drive, eliminating the need of a central system to control it.

Blockchain as technology is so versatile that it can be used anywhere with two or more than two parties needing a form of exchange. Since the Tender or tokens are generated by pre-set protocol, chances of manipulation are almost close to zero.

While talking about the benefits of Blockchain implementation in the Energy sector, SP group CEO said,

“In the past, you have big power stations in the centralized model, and you would transmit power to the households. In the future, you would have solar panels, and you would have batteries. In that model, the power system would be a lot more robust.”

Final Thoughts

Blockchain Technology is the backbone for the Cryptocurrencies, and most of us often confuse between the two. The blockchain is technology while Cryptocurrency is the implementation of the blockchain. So, you can apply Blockchain to any system with a centralized entity, for example, Banking, Healthcare, Voting, refund systems and many more.

Renewables

Auction for early stage geothermal development areas in West Sumatra, Indonesia

21 November 2018

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Indonesia

Indonesia’s Ministry of Energy and Mineral Resources through EBTKE is launching an auction for geothermal preliminary and exploration survey areas (WPSPE) in Bonjol, Pasaman Regency in West Sumatra Province.

The Ministry of Energy and Mineral Resources (ESDM) through the Directorate General of New and Renewable Energy and Energy Concertation (EBTKE) again auctions geothermal Preliminary and Exploration (WPSPE) Survey Areas.

The WPSPE offered is WPSPE Bonjol, located in Pasaman Regency, West Sumatra Province. The potential capacity is estimated at 200 MW with a land area of 7,441 hectares.

ESDM Director General of Geothermal Energy, Ministry of Energy and Mineral Resources Ida Nuryatin Finahari is optimistic that the offered block will be sought by investors such as WPSPE which was auctioned before. Evidently as many as eight WPSPE that have been auctioned so far, have been sold in full.

“There must be someone who is interested. The one who has shown interest is there. Wait for another month, there is only a list of proposals,” said Ida, recently.

Ida said the implementation of the offer will last for 1 month. The auction document must be submitted no later than the interested business entity on November 21, 2018.

The business entity designated as the winner will conduct a Pre-Transaction Agreement (PTA) with PT PLN (Persero) after exploration is complete and a Geothermal Permit is issued. The reference price of electricity in the PTA referred to follows the provisions of the legislation.

News Clipping

How Is Renewable Energy Certificate (REC) traded on the Blockchain?

Importance of Decentralized System

Final Thoughts

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