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  • Energy Efficiency

Delayed energy efficiency law seen reducing projected savings benefits

21 February 2019

 – 

  • Philippines

THE delay in the passage of the Energy Efficiency and Conservation Act (EE&C) is depriving the economy of the immediate benefits of the P37.8 trillion estimated savings from curbing energy use through 2040, the Philippine Energy Efficiency Alliance (PE2) said.

PE2, a non-stock, non-profit organization of energy efficiency market stakeholders, said in a statement on Thursday that the proposed law could also soften the impact of rising energy prices.

“This means that households, small businesses, buildings, industries, public facilities and other energy end-use sectors stand to collectively save less than P 37.8 trillion in avoided energy purchases between now and 2040 if the passage of the EE&C Act slips beyond this first quarter of 2019,” PE2 President Alexander Ablaza said.

On Jan. 16, 2019, the Bicameral Conference Committee approved the reconciled Senate and House versions of the measure, which institutionalizes a framework to advance energy efficiency and conservation practices in the country.

The reconciled version of Senate Bill No. 1531 and House Bill No. 8629 calls for the creation of a national energy efficiency and conservation plan that sets national targets, strategies, while imposing a regular monitoring and evaluation system.

The reconciled bill is awaiting the signature of the President, who recently signed several laws.

Mr. Ablaza said the country is the last among members of the Association of Southeast Asian Nations (ASEAN) to enforce energy efficiency and conservation through legislation.

“The EE&C bill had a 28-year history of being refiled since the 8th Congress. The country cannot afford to prolong this delay,” he said.

Mr. Ablaza renewed the call of PE2 members for the immediate signing into law of the reconciled bill after the continuous increase in power and fuel prices.

He said delays in the passage of the bill pushes back the positive effects of mandatory implementation, including dampening the rise in energy prices.

“Our energy market badly needs to arrest the business-as-usual escalation of electricity tariff and fossil fuel prices, and a further delay in the implementation of energy-saving projects, programs and investments will only serve to delay their decelerative effects on energy price increases,” he said.

He said scaling up an energy efficiency program eases the rise energy prices as it results in deferring new capital expenditure for upgrades in energy generation, transmission and distribution infrastructure. It also cuts the expected rise in the country’s dependence on imported fuel sources, he added.

Mr. Ablaza earlier said that the bicameral committee agreed to re-anchor the fiscal incentives provision of the bill on Executive Order No. 226 or the Omnibus Investments Code of 1987, as amended.

In an earlier statement, PE2 said the Senate panel viewed the adjustment as a reasonable balance between the incentive rationalization objectives of the Department of Finance and the requirements of private investors.

The House panel agreed with the compromise reduction, but wanted to put on record that every peso of granted incentives to energy efficiency projects will result in a P2.31 reflow to the national treasury in the form of additional tax revenues, in addition to other socio-economic benefits.

“The conferees from both chambers likewise agreed to exempt energy efficiency investments from Article 32(1) of EO 226, thereby enabling foreign-owned projects to avail of fiscal incentives,” PE2 said.

The alliance said the Senate and House panels agreed to insert “clearer language” that mandates local government units (LGUs) to establish energy efficiency and conservation offices and appoint officers, with the option to do so within their existing plantilla and resource framework.

Also, the bicameral body accepted the Senate panel’s recommendation to include a new section that would encourage innovative procurement, contracting and financing procedures for government-implemented energy efficiency projects in public facilities.

The Department of Interior and Local Government and the Department of Science and Technology were added in the composition of the proposed inter-agency energy efficiency and conservation committee. — Victor V. Saulon

  • Renewables

Pinay scientist named director in Austria-based atomic energy agency

20 February 2019

 – 

  • Philippines

MANILA – A Filipino scientist was recently appointed as one of the directors of the International Atomic Energy Agency (IAEA) in Vienna, Austria, the Department of Foreign Affairs (DFA) said Wednesday.

The DFA said Dr. Jane Gerardo-Abaya was appointed as IAEA’s Department of Technical Cooperation Division Director for Asia and the Pacific on Jan. 1.

She last held the post of section head at the same division.

Abaya is an Austria-based scientist who has been with the IAEA in various capacities since 1994.

She has spoken about educating students and teachers about nuclear science and technology and capacity-building in the same area.

An expert in applied geology and geothermal hydrology, Abaya finished her bachelor’s and master’s degrees in geology at the University of the Philippines.

She received her PhD in Applied Geology and Geothermal Hydrology from the Universität fuer Bodenkultur in Vienna, Austria in 2004, according to her profile on the Department of Science and Technology website.

She also worked as a geochemist at the Philippine National Oil Company and senior environmental planning researcher at the Department of Environment and Natural Resources.

She was a recipient of the Balik Scientist Award and a research grant from the Department of Science and Technology in 2008.

In 2017, Abaya received the “Superior Achievement Award” from IAEA Director General Yukiya Amano. She also received a “Distinguished Service Award” from then IAEA Director General Mohamed ElBaradei in 2008.

Abaya paid a courtesy call on Philippine Ambassador to Austria Maria Cleofe Natividad at the Philippine Permanent Mission in Vienna’s chancery on Jan. 18.

Natividad expressed the government’s full support for Abaya in carrying out her duties as a new division director at the IAEA.

The IAEA is the international center for cooperation in the nuclear field. According to its official website, the agency works with its partners worldwide to promote safe, secure and peaceful use of nuclear technologies.

  • Oil & Gas , 
  • Others

Rising Energy Demand Could Be A Boon For The Philippines

20 February 2019

 – 

In January Energy World Corporation (EWC) announced it had been given final approval by the Department of Energy (DoE) under their new regulations to build the country’s first LNG import terminal and regasification facility, which is under construction on Pagbilao Grande island in Quezon.

The Australia-headquartered company – which also operates in its home market and Indonesia – has stated that the terminal, which is expected to be operational by March 2020, will have an import capacity of 3m tonnes per annum (tpa), providing up to 3000 MW of generation capacity.

Along with the terminal, EWC has approval to develop a 650-MW gas-fired power plant next to the facility, with the import terminal set to supply both the needs of the new power station and those of third-party clients.

“There is a great opportunity for LNG energy production given the growing electricity demand in the Philippines,” Graham Elliott, country manager of EWC, told OBG. “Given the low production cost, LNG-generated electricity would be competitive with any other energy source and can be less expensive than coal.”

This major investment project opens a path for other energy companies in an expanding market, though early arrivals will likely gain a competitive advantage.

Rising energy demand and falling gas supply spur LNG investment

The need to boost imports and regasification capacity is becoming increasingly urgent with the rapid depletion of the Malampaya gas field.

The field currently supplies three gas-fired power stations in Luzon, which have a combined capacity of 2700 MW, 30% of the energy requirements of the Philippines’ most populous island.

However, reserves are declining rapidly and full-scale production is projected to end by 2024, with the wells set to be depleted by 2029 at the latest. Related: Permian Production To Break 4 Million Bpd In March

LNG imports will be needed to bridge the gap between supply and demand unless significant new deposits can be identified and brought on-line over the next five years.

This shortfall is set to increase as Philippine energy requirements rise over the coming decades. While installed generation capacity stands at 23,000 MW, the DoE estimates the country will need to deploy an additional 44,800 MW by 2040.

While the government is looking for renewable resources to account for 20,000 MW of this new capacity – and has expressed interest in developing nuclear power – LNG is likely to meet much of the new demand.

LNG project in Batangas to come on-line

At least some of that LNG supply will come from two other projects in the pipeline.

In January the DoE granted permission to Tanglawan Philippines LNG to develop a 2.2m-tpa LNG terminal and processing facility in the province of Batangas.

The company – which is a joint venture between domestic firm Phoenix Petroleum and the Chinese state-owned enterprise China National Offshore Oil Corporation – plans to commence construction this year, with commercial operations to begin at the $686m regasification plant in 2023.

As part of the project, Tanglawan Philippines LNG also plans to develop a 2000-MW gas-fired power station at an estimated cost of $1.3bn.

The state-run Philippine National Oil Company (PNOC) has expressed interest in joining the venture, with Alfonso Cusi, secretary of energy and chairman of PNOC, announcing in January that the parties had agreed in principle to the state-owned firm taking a stake in the development of the facility.

Further LNG import and processing facility

While the EWC and Tanglawan LNG projects were both endorsed by the DoE, another company has also applied for approval to construct an LNG facility. Related: MIT Professors: This Is The Energy System Of The Future

In December domestic energy firm First Gen announced that it had entered into a joint development agreement with Japan-headquartered Tokyo Gas. First Gen had applied for a notice to proceed permit with the DoE for the green light to build a LNG terminal and regasification facility in Batangas City.

If given the go-ahead, the prospective project would be used to provide feedstock to First Gen’s four existing gas-fired power stations as well as to third parties.

As the Philippines moves to scale back the use of coal in its energy mix – which currently accounts for 50% of power generation – the input of LNG can be expected to increase, improving cost efficiency and reducing carbon emissions, according to Jon Russell, executive vice-president of First Gen.

“Gas is among the most competitive energy sources, especially if coal prices keep rising,” Russell told OBG. “The capital cost of installing an LNG plant, or a regular gas-fired plant, is three times cheaper than coal and significantly less damaging for the environment. In addition, with a future of more renewable energy power generation, gas-fired plants are the perfect partner as their ability to ramp-up and ramp-down complements the intermittent nature of renewables.”

By Oxford Business Group

  • Others

Indonesia’s climate change stakeholders boosted

20 February 2019

 – 

  • Indonesia

The newly-launched Indonesia Low Emissions Network (ILEN) has boosted the country’s aspirations of fulfilling its climate change goals as it moves to create a cleaner future.

The first network for climate change implementation in Indonesia, the ILEN – which was unveiled in Jakarta by NGO Green Partner Foundation on Tuesday – aims to improve and share information and knowledge on low emissions technology and best practices amongst its members comprising of government agencies, private companies and NGOs.

Set to strengthen partnerships between state and non-state actors and to help the government develop and review low carbon development related policies, the self-funded ILEN also hopes to improve access to low carbon financial resources and increase private sector involvement in implementing low carbon development policies in Indonesia.

Comprising of government agencies such as the Ministry of National Development Planning and the Peatland Restoration Agency as well as industrial giants such as state-owned oil and gas corporation Pertamina and the country’s largest cement maker, Semen Indonesia, the ILEN has also attracted attention from financial institutions, investment funds, civil society organisations (CSOs), scientists, academics, field practitioners, educators and community leaders.

‘The earth cannot wait any longer to be healed’

The wide range of stakeholders is proof that in Indonesia, low emissions development is seen as not just an issue which concerns the government but rather the wider public.

“Every effort that comes from state and non-state actors to reduce greenhouse gas (GHG) emissions would be very much appreciated,” said Prof Rachmat Witoelar, Indonesia President’s Special Envoy for Climate Change.

“We do not have the luxury of time for emissions reduction; the earth cannot wait any longer to be healed,” said Prof Rachmat at the ILEN launch.

Prof Bambang Brodjonegoro, Indonesia’s Minister of National Development Planning, was also at the launch in a strong show of support by Indonesia’s government for the ILEN initiative.

Another high-profile climate change figure at the event was Christiana Figueres, former Executive Secretary of the United Nations Framework Convention On Climate Change (UNFCCC) who said the ILEN was a “real opportunity for Indonesia to more deeply embed a low-emissions pathway in its medium and longer-term development plans.”

Source: Various

Reaching targets through better collaborations

In 2010, Indonesia voluntarily pledged to reduce emissions by 26 percent and up to 41 percent with international support, against a business as usual trajectory, by 2020. By 2030, the target for the former rises to 29 percent.

However, achieving the emissions reduction target is a complex task at both, the national and local levels. With limited resources, the Indonesian government needs non-government entities actors to play their part – which is where the ILEN comes in.

It can perhaps follow the example of the Paris Agreement, where collaboration across sectors was fundamental to reaching an agreement in 2015 which has since been signed by 195 countries. The Paris Agreement aims to limit global temperature increases to below two degrees Celsius by 2100 and no more than 1.5 degrees Celsius, if at all possible.

Taking a leaf out of that book, the ILEN will help facilitate collaboration among the numerous stakeholders in Indonesia and promote open discussion and the formulation of sustainable low emissions development plans. This must be done hand-in-hand with stable economic growth – which Indonesian President Joko “Jokowi” Widodo has set at 5.3 percent for this year.

Indonesia’s economy has traditionally relied heavily on agriculture and forestry, which has been blamed for deforestation and forest fires. It is the world’s fifth largest GHG emitter according to a 2017 study by the World Resources Institute and is actively seeking to reduce emissions in the land use sector.

In 2011, it issued a moratorium on the clearing of primary forests in a bid to reduce forest fires. As the world’s biggest producer of palm oil, much of Indonesia’s deforestation is blamed on the clearing of land for the cash crop and other agricultural activities.

However, the energy sector is a bigger GHG pollutant and the share of renewable electricity production has remained relatively static.

“Any network that promotes environmental and climate friendly development should be supported, and we will use the ILEN to focus on building awareness about these two issues as it brings benefits not only to Indonesians but also our neighbours,” said Hizbullah Arief, founder of Hijauku.com, an online portal dedicated to the green economy and sustainable development in Indonesia and the only media company which is part of the ILEN.

“Indonesia is struggling to move beyond fossil fuels and our renewable energy target is still low. Indonesia targets a 23% share of renewable energy by 2025. However, only less than 7.4% has been achieved so far,” he added.

With the World Economic Forum last month describing climate change as the second biggest threat facing humanity today after natural disasters, efforts such as the ILEN will help ASEAN go a long way in addressing an issue which can only be resolved with the deeper collaboration of all stakeholders.

  • Oil & Gas , 
  • Renewables

As Indonesia’s oil sector is less profitable, it’s time for clean energy: Experts

20 February 2019

 – 

  • Indonesia

The continuous decline in oil prices that has led to a lower contribution to national revenue should become a wake-up call for the government to immediately kick off fiscal reform that would speed up the use of renewable energy, experts in a recent discussion said.

According to a new report released by the Canada-based International Institute for Sustainable Development (IISD), most revenue from the oil and gas sector was indirectly allocated for fossil fuel consumption.

Based on the research that looked into the 2014-2016 fiscal years, the average contribution of the oil and gas sector stood at Rp 190 trillion (US$16 billion) annually or 18 percent of government revenue, but 14 percent of which was later channeled for fossil fuel subsidies.

“As revenue from fossil fuels declines, it is more important than ever for this clean energy transition to be accelerated. Indonesia’s past shows it can grow its economy without expanding fossil fuel extraction,” IISD senior policy advisor and lead for Indonesia Philip Gass said.

Without increasing revenue, the fossil fuel subsidy would only encourage the wasteful consumption of energy, leading to faster depletion of Indonesia’s oil, gas and coal reserves, the report further stated.

The institution believes that further fiscal reform on fossil fuel subsidies is also possible as past experiences of cutting off the fuel subsidy in 2014, which saved around Rp 200 trillion, was a success story that could be repeated again.

“In 2014’s fuel subsidy cut, the government was able to make greater investments in infrastructure and provide greater support for communities and social assistance programs. […] More subsidy reform will push for cleaner energy,” IISD Indonesia coordinator Lucky Lontoh said.

The report recommends that the government phase out various energy subsidies and push for the greater role of renewable energy. The experts said in the report that developing renewable energy is suitable for Indonesia not only because it is more and more cost competitive but also because the country has plenty of clean energy resources like geothermal energy.

The contribution of clean energy power plants in 2018 stood at around 12 percent, while coal-based electricity stood at more than 50 percent and will likely do so until 2027.

The Energy and Mineral Resources Ministry’s director for new and renewable energy Harris said earlier that Indonesia had a lot of untapped clean energy potential.

“To date, we have only utilized 2 percent of our renewable energy potential, but luckily our geothermal energy has become one of the world’s biggest producers,” he said recently.

Based on the ministry’s recent data, Indonesia has 442 gigawatts (GW) of renewable energy capacity, but only 9.42 GW or 2 percent has been installed.

Furthermore, the fiscal transition toward cleaner energy faces a challenge from the relationship between the government and its people that dictate policy, said energy expert from Jakarta-based Paramadina University Emanuel Bria.

“We have learned that our targets on clean energy, such as in the National Medium Term Development Plan [RJPMN], were always missed. And it is because the market dictates our policies, such that this year coal production exceeded the initial plan,” he said.

The IIDS acknowledged that a radical fiscal transition in the energy sector would be hard to attain, so they believe that the transition is a long-term goal with small steps that could be taken soon, such as increasing the use of abundant natural gas.

“Natural gas resources have a crucial role in the transition [toward cleaner energy]. Indonesia has more gas reserves than oil and the former is also much cleaner,” said the president director of energy firm PT Q Energy South East Asia David Braithwaite, who also the report’s researcher.

  • Energy Cooperation , 
  • Renewables

UK pledges $19.5m in grant for clean energy in Indonesia

20 February 2019

 – 

  • Indonesia

The United Kingdom has pledged 15 million pounds (US$19.5 million) in grants to Indonesia to accelerate the development of low-carbon energy in the country.

The grants will be used to finance four programs, namely matchmaking between the private sector and the government, capacity building for stakeholders, policy making assistance and pilot projects in rural or remote regions.

British Ambassador to Indonesia, ASEAN and Timor Leste Moazzam Malik told the press on Wednesday that the grants would start to be disbursed in June this year and were scheduled to be completed within four years.

“We also hope that the agreement can bridge UK clean energy businesspeople with Indonesia’s businessmen. Hence, we will set up a dialogue event,” he said.

The pilot projects to be funded by the grants will focus on eastern Indonesia, where the economy and electricity coverage lag behind other regions.

Energy and Mineral Resources Ministry secretary general Ego Syahrial, who represented the government in the agreement, said one of the pilot renewable-power projects would be located on Sumba Island in East Nusa Tenggara.

Moazzam said the UK possessed leading technology in developing wind energy, tidal energy, photovoltaic solar panels and micro-hydro power plants.

The agreement will establish a cooperation framework between the UK and Indonesia on sharing technical knowledge, advice, skills and expertise on low-carbon energy development. (bbn)

  • Coal , 
  • Renewables

Coal does not make sense in the Philippines, says former UN climate chief

20 February 2019

 – 

  • Philippines

Christiana Figueres, the woman who led the negotiations in the groundbreaking Paris Agreement as executive secretary of the UN Framework Convention on Climate Change, steered almost 200 nations through the most complex international deal ever attempted four years ago.

But in her current job as convenor of Mission 2020, a global initiative to curb fossil fuels by the crucial date of 2020, Figueres faces another challenge: stopping coal in Asia, where most of the world’s coal is being mined and burned to generate energy for the world’s fastest growing economies.

As part of the mission’s Asian tour, Figueres was in Japan, the Philippines, and is in Indonesia this week.

Figueres said the shift away from coal—the single biggest source of greenhouse gas emissions—for these three coal-dependent countries is expected to be complicated as they have relied on the fossil fuel for many years.

But compared to Japan and Indonesia, the Philippines is predicted to have the highest share of coal in its power mix in Southeast Asia 12 years from now.

Coal-fired power plants are currently the Philippines biggest source of electricity with an existing capacity of 7,419 MW. The Philippines also imports 75 per cent of its coal, and ranks 10th in the world for planned coal-fired capacity.

Despite the country’s tax hike on coal last year, the government continues to support coal expansion.

International and local investors have also poured in billions of dollars into the island nation’s coal industry helping it to thrive.

Amid these challenges, Figueres is pushing for the Philippines to step up its transition away from coal, a major source of pollution and the single biggest source of greenhouse gas emissions globally.

“

Full electrification of the Philippines can be attained with modular renewables such as small micro grids and rooftop solar.

Christiana Figueres, convener, Mission 2020

“I don’t think that the Philippines can afford to use coal forever because those assets will lose value and they will not be able to operate profitably,” she told Eco-Business.

In this interview, the former UN climate chief assesses the energy landscape in the Philippines, its challenges, and why holding on to coal makes no sense.

How are you creating awareness of renewable energy in the Philippines, a country where coal is supported by the government and business?

The market structure of electricity was built for fossil fuels. It is very difficult to move away from a structure with high capital expenditure and high operating expenditure, because you need to allow for variability in the price of fuel, and owners of plants never know what the fuel price is going to be.

If you move to another system where you have upfront investment cost but the fuel cost is zero, that’s a very different financial structure that is not being considered currently in most electricity markets. That needs to change as renewable energy all over the world is now cheaper than coal.

Figueres with Department of Finance Secretary Sonny Dominguez. Image: Figueres’ Twitter account

There are renewables that are available 24/7 like hydro and geothermal, but solar and wind are not 24/7, so they need to be compensated for. But they have completely different characteristics. The system will have to adapt for them because we just don’t have any more carbon space left in the carbon budget for the fossil fuels that we’re burning.

What is your advice for the Philippine government on how to transition to clean energy?

I’m 62 years old and I have two daughters and I don’t give advice to my daughters or to governments. The only thing that I do is bring out the facts and they have to make their own decisions.

The reality that is facing a country like the Philippines is that it already has 30 per cent renewables in its energy mix, but still has many areas without electricity.

The easiest way to provide electricity to all Filipino households is obviously renewable energy, because then you don’t have to pull from the grid, you don’t have transmission lines or have to worry about distribution. That has to be paired up with battery storage so electricity is available at all hours of the day.

But that is entirely doable so full electrification of the Philippines can be attained with modular renewables such as small micro grids and rooftop solar.

There is also the big question of what’s going to happen with on–grid electricity where there is still a high projected use of coal, which is using up a lot of the country’s manpower and resources.

If you are importing three quarters of the coal that you need, then you are dependent on another country‘s willingness to sell you the coal. And you’re dependent on expensive foreign exchanges because you have to use your national budget to buy the coal. That doesn’t make sense to me if you have other indigenous sources of energy.

Finally, the more coal investments there are, the higher the danger of a negative hit to the economy because of stranded assets—when coal assets lose their value.

The Philippine Department of Energy (DOE) and Meralco have pending coal plant projects. What was your meeting like with them?

I was not expecting to get any commitments from them. It was just a conversation to understand the complexity and direction in which they were moving. The government has a coal tax, it’s a small tax but gives a good signal to corporates about the future direction they need to take.

We also talked about how to use small scale renewables to provide electricity for 100 per cent of the population, and how to shift the risk of high fuel prices away from consumers to the [power] generators. If fossil fuel prices rise again, it should be the generators who absorb that risk not consumers.

The DOE chief has said the country will not move away from coal. Did you get that sense during your visit here?

No, I did not. The fact that coal is cheap in the Philippines is only the result of how the electricity market is structured. It is not the cheapest per se. Renewables are cheapest, but you need to restructure the market to allow sources to compete in a transparent way. Once the risk of fuel prices is shifted from consumers to generators, that would create a more level playing field for renewables.

How can the Philippines shift away from coal?

Coal plants cannot be scrapped overnight because it will throw off the economy. There has to be a smooth transition where old coal plants are closed, because they do not contribute to the health of the energy system.

The most important thing is not to allow new plants that are under assessment—that’s the first step. It will take 20 to 30 years before the owners recuperate their investment, and in that time the Philippines will not be using any coal.

Do you see the shift away from coal happening in Asia?

Well, it certainly is in China, India, and Europe. Coal plants are being closed because they are inefficient. Some are not functioning, they are just sitting there. New plants in the pipeline are the problem. That’s where the economic and environment risk is, and where the big jump in greenhouse gas emissions will come.

  • Renewables

ERC speeds operation of Laos hydropower project

20 February 2019

 – 

  • Lao PDR

This was the Xayaburi Dam a year ago as it started to get ready for testing. Tests are running well ahead of schedule. (Photo provided)

The Energy Regulatory Commission (ERC) is planning to accelerate power distribution from the Xayaburi hydroelectric power project in Laos ahead of schedule as the regulator wants to curb the overall power tariff.

The project is Southeast Asia’s largest hydropower plant, with a development cost of 150 billion baht, previously scheduled to open on Oct 1.

Xayaburi has installed power-generating capacity of 1,285 megawatts (MW) for 7,370 gigawatt-hours per year.

The project comprises seven turbine generator units of 175MW each that will generate and transmit power through the 500-kilovolt (kV) transmission system to the state-run Electricity Generating Authority of Thailand (Egat). The plant has one 60MW turbine generator unit that will distribute power through the 115kV transmission system for domestic use in Laos.

CK Power (CKP) is the developer and operator for this project.

A source who is familiar with the matter and requested anonymity said the project is almost completed and is undergoing a test run on its power generating system.

“The first turbine generator unit of 175MW was tested last October and we plan to test all eight units, then schedule a commercial operation date [COD],” the source said. “The former COD was Oct 1, but the ERC wants to speed up power transmission to maintain the country’s power tariff and avoid an uptick in Thai power bills.”

The source said CKP spent 1 billion baht for the test-run period in 2018. CKP allocated another 500 million baht this year to accelerate completion of Xayaburi before October.

Vorapote Choepaiboonvong, CKP’s director, said the company’s power capacity stands at 875MW out of a total committed capacity to operate 2,160MW. Of the committed capacity, 615MW will come from the Nam Ngum 2 hydroelectric power project, followed by 238MW from two phases of Bangpa-in Cogeneration plant and 22MW from a new solar power project.

“With the additional capacity from the Xayaburi project under CKP’s ownership, capacity will be raised to 2,160MW in 2019,” said Mr Vorapote.

Of the Xayaburi project’s total capacity of 1,285MW, CKP holds a 30% stake together with Natee Synergy Co (25%), Electricite du Laos (20%), Electricity Generation Plc (12.5%), Bangkok Expressway and Metro (7.5%) and PT Sole Co (5%).

He said the Nam Ngum 2 hydroelectric power project in Laos is developed and operated by CKP’s subsidiary Nam Ngum 2 Power Co (NN2). CKP plans to issue debentures of up to 6 billion baht in March to refinance the project’s debt.

Tris Rating rated NN2 an A, based on CKP’s issuance of debenture recently. This rating reflects the financial capability and management of the 615MW Nam Ngum 2 project.

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