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Electricity/Power Grid

19 March 2019

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Vietnam

Power loss in Vietnam Electricity (EVN)’s systems has reduced sharply over the years thanks to the firm’s efforts to better manage the power network, especially in transmission and distribution.

Last year, the EVN saw 6.9 percent power loss, 0.3 percentage points lower than its target, and completing its five-year plan a year prior to the deadline.

In 2019, it aims to reduce the loss to 6.7 percent and to 6.5 percent in the future.

Since 2015, the firm has seen improvements in power loss reduction, from 7.94 percent in 2015 to 7.57 percent in 2016, and 7.24 percent in 2017.

According to Prof. Tran Dinh Long, Vice Chairman of the Vietnam Electrical Engineering Association, the reduction of power loss in the recent 10 years has shown the EVN’s great efforts, helping Vietnam become a leading country in terms of low power loss.

Prof. Long added that power loss in the power system largely depends on investment in the network, requiring a long process of modernisation.-VNA

Bioenergy

Wasting away to make energy

18 March 2019

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Thailand

Many private companies in the Thai renewable energy field are pleased with the new version of the national power development plan (PDP) for 2018-37.

The PDP calls for gradually opening up investor participation in waste-to-energy power projects, setting a goal of 500 megawatts from such fuel, representing 30% of total renewable resources by 2037.

Part of the impetus for this type of energy generation is that waste management has been put on the national agenda to help eliminate waste pollution in the country.

The Pollution Control Department forecasts average solid waste in Thailand to increase from 40,662 tonnes per day in 2008 to 42,900 in 2023.

More than 50% of waste heads to landfills and has done so for more than four decades.

There were several complicated conditions and regulations that were a barrier to developing a waste-to-energy sector in Thailand during 2012-15, according to the Energy Regulatory Commission.

The ERC has since amended several laws and conditions to create more potential for waste-to-energy business.

The new PDP allows the regulator to adopt business models and development conditions to license private investors.

Naruphat Amornkosit, secretary-general of the ERC, said an announcement of licensing for waste-to-energy projects is likely this month, with a tentative feed-in tariff of 3.66 baht per kilowatt-hour (unit).

This licensing round excludes 12 refuse-derived fuel (RDF) projects under the Quick Win initiative with a combined capacity of 78MW.

“The ERC will consider the business model and capacity in providing two types of licences: small power producer at a capacity between 10-99MW and very small power producer for less than 10MW,” Ms Naruphat said.

She said power purchase agreements will be for a period of 20-25 years and the state grid has plans to buy power from this renewable resource.

The locations and landfills will be in high-density areas such as Bangkok, its surrounding provinces and other metropolitan areas.

Ms Naruphat said licence holders have to comply with a single rule: quick development during a stipulated time frame to avoid any delays and postponement.

Higher purchase price

Montree Wiboonrath, president of the Institute of Industrial Energy, said the institute submitted proposals to the ERC to place RDF resources in the biomass power category, which offers a higher feed-in tariff of 4.24 baht per unit.

“Biomass power generation is made from agricultural waste, and the price of raw material fluctuates greatly compared with abundant solid waste in landfills,” Mr Montree said.

For example, the price of wood chips and rice paddy has tripled from 500 baht per tonne to 1,400 baht in the past five years, he said.

At present, RDF power projects receive a feed-in-tariff of 2.65 baht per unit.

“The lower tariff means many investors will have a low return on investment,” Mr Montree said.

A waste-to-energy power plant in Samut Prakan. (Photo by Somchai Poomlard)

Some 550MW of waste-to-energy power projects have applied for licences, with RDF resources a part of this renewable energy, he said.

The capacity represents the first phase of the waste-to-energy business, but only 22 projects have been developed and are operational, offering a combined capacity of 213MW.

The remaining capacity of 337MW has not been developed because the rules and regulations are too complicated for the ERC to approve the licences for investors, Mr Montree said.

“Energy policymakers should facilitate investment in RDF projects because the amount of waste in Thailand grows quickly every year,” he said.

Kulit Sombatsiri, the energy permanent secretary, said the Energy Conservation Fund is considering allocating a budget of 2.5 billion baht for the Local Administration Department to develop waste separation plants nationwide.

These plants will sort out raw materials for RDF-made power generation.

Ready but wary

Kanapod Nitsiri, chief executive of Eastern Energy Plus Co, said EEP’s business expansion is being stymied because of uncertain rules and regulations.

“We are pushing for the feed-in tariff of 3.66 baht per unit because costs for preparation and development always increase,” he said.

EEP is the operator of RDF power projects in Phraek Sa subdistrict in Samut Prakan province.

“During a public hearing on participation in the RDF power project, we have suffered from unexpected costs because local communities are protesting the project because of the stench and wastewater,” Mr Kanapod said.

EEP is the first investor in local RDF power projects and has seen it take several years to develop and operate its plants. The company wants to invest in three more RDF projects at the same landfill.

EEP also plans to submit documents to join the Quick Win initiative in Ayutthaya.

Worawit Lerdbussarakam, vice-president of TPI Polene Power Plc (TPIPP), said the company sees opportunities in the coming year for waste-to-energy power projects.

TPIPP is Thailand’s largest capacity operator of an RDF project, which is located in Saraburi province.

Mr Worawit said Thailand has great potential to develop RDF projects, with capacity of up to 1,800MW.

“Of course, policymakers should facilitate development with more flexible conditions and rules,” he said.

With its experience in RDF projects, the new quota for waste-to-energy capacity is a big opportunity for the company, Mr Worawit said.

TPIPP plans to submit proposals for the RDF auction to the Bangkok Metropolitan Administration (BMA) for the Nong Khaem and On Nut landfills this month.

The BMA plans to open the auction round for 40MW in total, with an estimated investment cost of 12 billion baht.

TPIPP has issued debentures worth 4 billion baht since last November for refinance and to provide funds for its business expansion, including new RDF projects.

The company also wants to participate in the auction for independent power producers in the coming years.

Cherdsak Wattanavijitkul, managing director of TPC Power Holding Plc (TPCH), said the company is ready to participate in the auction for RDF projects because of its financial capabilities and business partnerships.

“TPCH has lengthy experience in biomass projects, which generate power from agricultural waste, so it can be assumed that we can work with RDF technology,” Mr Cherdsak said.

The company wants to diversify its power generation business from biomass to solid waste, he said.

TPCH won a licence in the first RDF auction in November 2017 from the Nonthaburi Provincial Administration, with a capacity of 9.5MW. That project is under construction, scheduled to commence commercial operation in 2021.

It also took part in an auction of BMA’s Nong Khaem and On Nut landfills for RDF projects.

“TPCH plans to expand the committed capacity of waste-to-energy power projects, almost doubling to 250MW by 2020 from 130MW in 2018,” Mr Cherdsak said.

Electricity/Power Grid

‘Cambodia Electricity Power Cuts Caused By Drought,’ – Official Reports

18 March 2019

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Cambodia

Cambodia’s capital, Phnom Penh, could see periodic power outages continue until late May due to an electricity shortage attributed to climate change and drought, the Energy Ministry said Monday.

The planned outages, which occurred for several hours on multiple days earlier in some Phnom Penh neighbourhoods, may last until the fourth week of May, Victor Jona, director-general of the ministry’s energy department, told dpa.

The government was asking people to minimise their electricity usage.

Large businesses could use their own diesel generators for backup power, Jona said.

Prime Minister, Hun Sen, said the nation was facing a 400-megawatt electricity shortfall due to a water shortage which had led to cuts in the country’s hydroelectric power generation, the Khmer Times reported on Monday.

“Climate change is not only affecting Cambodia, but also the whole region,” Sen said.

Nearly half of Cambodia’s 2,208 megawatts of power generated domestically in 2018 was from hydropower with about a third coming from coal, according to government figures.

National utility company, Electricite du Cambodge, said on Friday that electricity demand had risen and led to power supply disruptions due to extremely hot weather, the Times reported.

The utility was scheduling either morning or afternoon power outages for six hours daily throughout the country. (NAN)

Others

Energy deregulation in ASEAN: Quicker isn’t necessarily better

18 March 2019

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ASEAN

At different paces, ASEAN countries are studying the feasibility of energy deregulation. The term applies to the transition from regulated to market-based energy prices.

Some ASEAN countries embark on an energy deregulation journey to increase sustainability. With market-based prices, the energy sector is forced to become more efficient and to look for novel ways to generate power in a socially, economically, and environmentally sustainable manner.

ASEAN’s energy demand has increased by 60% over the past 15 years. it will continue to grow as ASEAN’s developing economies expand further, with demand set to double by 2030. Efficiency will have to become a central focus of the energy industry to meet this demand.

Across ASEAN, the interest level in energy deregulation varies. Singapore, Malaysia, Thailand and the Philippines operate liberalised retail electricity markets. The triggering factors varied from a push for more competitive pricing, partnerships with independent power producers (IPPs), and recommendations from the International Monetary Fund (IMF) and World Bank.

Conversely, countries like Indonesia prefer to retain their national and state utility companies as the only IPP. The oil-producing nation has likely been deterred by its past setbacks in liberalising the oil and gas sector.

Slow and steady can win the race to deregulation

Countries like the US, Europe and Australia may have embarked on their journeys towards deregulation first, but not everyone has benefitted from the move.

For instance, in Texas, USA, the average electricity tariff fell by 5.5% after introducing retail competition. However, in Maryland, a lot of residents are paying more. Just 3% of utility customers who buy power from a supplier are saving money.

To ensure the benefits of a liberalised energy market are shared amongst consumers, and avoid the pitfalls of Maryland, ASEAN nations must make consumer protection a pillar of liberalisation. After signing up for teaser rates, customers do not monitor and stay updated on the new imposed variable rates. In the US, many providers then increase the rate after the initial introductory offer expires, leaving many billpayers worse off.

To safeguard consumers, Singapore’s Energy Market Authority (EMA) has created consumer advisory and a website for price comparison. There are standard price and non-standard price plans for consumers to choose when changing retailers. In cases of dispute, consumers can also approach the Consumers Association of Singapore.

Avoiding the pitfalls: Singapore is providing a model for energy deregulation

Singapore, although moving at a slower pace than many in the West, takes the lead in the race to sustainable liberalisation with consumer benefits. However, Singapore’s land area stands at a mere 720 square kilometres. In the current phase, 12 different electricity retailers will compete for 1.4 million households and business accounts. The market size is small, with little growth potential. It makes more sense for larger countries to push for energy liberalisation.

Dr Shi Xunpeng noted, “This free choice and competition among retailers will give consumers more customised electricity supply, better services and probably lower prices.” He is the deputy head of energy economics at the National University of Singapore’s Energy Studies Institute.

Back in 2015, Singapore’s Minister for Trade and Industry announced plans to fully open up the electricity retail market to competition. Its statutory board – EMA was to oversee the transition. EMA has been operating since 2001, to support the nation’s effort in liberalisation.

Since the introduction of energy liberalisation, the main power producer SP Group has lost market share. Its market share in the electricity retail sector reduced from 41.7% in 2005 to 27.7% in 2017. Even though SP group is a government-linked company, the government has not held back its liberalisation plans.

Singapore takes a cautious approach when it comes to implementation. It started off by using businesses as a testing ground, followed by a pilot in Jurong. More than 30% of the eligible residents in Jurong switched energy retailers and paid around 20% less than the regulated tariff.

By May 2019, this initiative will have been rolled out across Singapore. In the meantime, the government provides information on energy providers and encourages citizens to explore their options.

At the end of the day, it is not about who adopted energy deregulation first, but how consumers benefit from it. The nation loses if their people end up suffering from higher energy prices. A cautious, consumer-centric approach can provide the winning formula for deregulation. Now other ASEAN nations should follow suit.

Others

The youth behind coal-free Negros Occidental

18 March 2019

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Philippines

BACOLOD, Philippines – In Negros Occidental, the young generation triumphed in their fight against the use of coal as a source of energy in the province.

Negrosanon youth banded together in a strike against coal in front of the Negros Occidental Provincial Capitol last March 6. Dubbed the “Youth Strike for Negros,” it was a silent protest that prompted Governor Alfredo Marañon Jr to declare Negros Occidental coal-free.

Marañon signed an executive order that prohibits the entry of coal-fired power plants in the province. He also ordered the creation of the Provincial Renewable Energy Council to formulate measures encouraging renewable energy programs.

Behind the important fight against coal in Negros Occidental is Youth for Climate Hope (Y4CH), a coalition of youth organizations and concerned individuals based in Bacolod City.

Y4CH has initiated several events and activities that focus on climate change, climate justice, and renewable energy, including the March 6 protest.

“We are critical of the systems surrounding climate action, but we aim to do more than calling for accountability or passing the blame – we hope to be a part of building the future we want, and we offer proactive solutions along with our public actions,” Y4CH convenor Krishna Ariola said.

“People say it’s pointless to do anything, but we disagree. There is so much we can do if we all do it together,” she added.

Among these proactive solutions are plans of the group to launch awareness campaigns on renewable energy.

Aiming to equip young people with basic knowledge of climate action, Y4CH will be conducting several programs, to be introduced as “R.E.learn” and “R.E.treat.” The former will focus on teaching the youth through talks and forums, while the latter will center on modularized camps.

COAL-FREE. Negros Occidental Governor Alfredo Marañon Jr gives a thumbs up to the participants of the Youth Strike for Negros on March 6, 2019. Photo by Rexor Amancio/Climate Reality Philippines

The decision to banish coal, Ariola also said, is long overdue.

“Negros is an island of success stories: from the organic ordinance, environmental efforts, and clean energy sources, we will make sure that Negros continues its legacy of environmental protection. We see Negros as a true renewable energy hub of the Philippines in the near future,” she added.

Y4CH has been working closely with other youth groups in Negros, specifically in Bacolod City, whose visions are similar to theirs. Making use of available platforms such as Facebook, the coalition amplifies its call for volunteers in order to expand its circles.

“We also hold small capability-building activities within the group, to make sure everyone is educated and aware about what we’re fighting for. We also have good relations with other environmental groups, youth groups, and the Church,” Ariola said.

According to Claudia Gancayco, a member of Y4CH, their aim is to campaign on a positive note, hence the emphasis on hope.

“We want the youth to be hopeful that although the science and the news sound bleak, we want the youth to have a hopeful approach because there is still something that can be done. We want to underscore that fact since if we don’t, it’s so easy to lose hope,” she said.

Asked why Y4CH does what it does, Ariola said the coalition’s mission is rooted in basic humanity.

She said: “I think environmentalism is not just for the environmentalist, but it’s for everyone…. It’s only a matter of time until everyone joins the fight for survival. Clean air and a balanced ecology are basic human rights, and we will do our best to protect those rights, especially in our communities.” – Rappler.com

Chad Martin Natividad is a 4th year AB Psychology student at University of St La Salle (USLS) Bacolod and a Rappler Mover. He was previously magazine editor and literary editor of The Spectrum, the official student media corps of USLS, and is currently its editorial assistant.

Maria Angeline Mayor is a 4th year AB Communication student at USLS Bacolod and a Rappler Mover. She is also a news writer of The Spectrum.

Oil & Gas

Big-time oil price hike set for March 19

18 March 2019

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Philippines

MANILA, Philippines – Amid the water crisis in Metro Manila, consumers are in for another burden as fuel prices are set to rise on Tuesday, March 19.

Petro Gazz, Seaoil, Caltex, and Shell announced on Monday, March 18, that gasoline prices will increase for the 6th straight week, by P1.45 per liter. Diesel will be jacked up by P0.30 per liter.

Companies carrying kerosene will also implement a P0.40 per liter hike.

The new rates will be implemented at 6 am on Tuesday.

Year-to-date adjustments stand at a net increase of P6.10 per liter for gasoline, P4.65 per liter for diesel, and P3.45 per liter for kerosene.

Gasoline retails somewhere between P50.84 and P55.69 in Metro Manila, while common diesel prices range from P43.34 to P46.23, and kerosene at P50.74.

The Department of Energy attributed the successive price hikes to the tight supply in Asia coupled with healthy demand. – Rappler.com

Others

Vietnam’s Energy Industry Needs Regulatory Reforms, Experts Say

18 March 2019

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Vietnam

Industry experts have called for regulatory reforms and new policies for Vietnam’s energy sector. They said the government needs to push for policies promoting private investments to spur action that will benefit the industry in the future.

According to Vietnam Net, the European Chamber of Commerce (EuroCham) in Vietnam said in the 11^th edition of its annual Whitebook launch that the country needs to entice private investors for the advancement of the renewable electricity sector.

The EuroCham recommended the introduction of a “sleeved” direct power purchases agreements (DPPAs) between some of the world’s largest power consumers and power producers in Vietnam. The group said such agreements have been proven to effectively boost energy industries in other countries.

Aside from DPPAs, the EuroCham also urged the Vietnamese government to consider reforms for the wind and solar sects. The organization said new policies to turn these sectors into “bankable” industries could help transform the country’s renewable energy programs for the better.

For the European chamber, implementing regulatory reforms will help attract global brands and investors. International investments will then lead to the increased value of the Vietnamese renewable energy industry and potentially put the country in a position that allows it to compete with global rivals.

Since 2004, Vietnam’s demand for electricity increased and resulted in a hike in the global interest. However, the country’s limited policies have been holding back procedures for new investments. There have also been problems with securing energy-efficient technology from global brands.

To help curb issues that could arise from deals with other countries and investors, the EuroCham suggested that Vietnam invest in incentive measures regarding waste-to-energy systems. The government chamber believes such measures will benefit local communities and provide cost-saving solutions for programs that aim to spur action in the energy industry.

In line with the EuroCham’s recommendations, Vietnam has agreed to collaborate with Singapore for projects in the energy industry, The Business Times Singapore reported. Both sides expressed eagerness in cooperating for LNG (liquefied natural gas) and solar projects.

Aside from the energy deal, Vietnam and Singapore also discussed how private-owned firms in both countries will help implement Vietnam’s Industry 4.0 development initiative. The parties also discussed start-up ecosystems that will further improve trade and diplomatic ties.

The agreement was part of two Memoranda of Understanding (MOU) signed last year by Vietnam’s Ministry of Industry and Trade’s Department of Oil, Gas, and Coal and Electricity Renewable Energy Authority and Enterprise Singapore.

Others

Mindset change, strong leadership required to promote electric mobility

18 March 2019

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Indonesia

Rapid urbanization has led to traffic congestion and pollution, with the United Nation projecting that the number of the world’s population living in cities will increase by 55 percent today to 68 percent by 2050.

Against this backdrop, cities worldwide are eager to address urban challenges by adopting a smart city concept, which includes smart mobility and energy efficiency.

With the transportation sector contributing to about 30 percent of a city’s emission, shifting from fossil fuel-driven to electric vehicles (EVs) was inevitable, according to Swedish-Swiss engineering giant ABB’s research team recently.

ABB’s research team manager for power and energy system, Marija Zima, said the future of urban mobility would be electrification, autonomous and share-ride.

People’s mindsets, however, were still the biggest barrier to EV adoption, she said during the 2nd International Federation of Automobile (FIA) Smart Cities Forums in Hong Kong.

Despite global EV sales creeping up by 64 percent, or nearly 2.1 million units last year, helped by surging sales in China that took half of the proportion, EV sales still contributed to only 2.2 percent of total car sales, according to Sweden-based consultant and data provider EV-volumes.com.

At the end of last year, the 5.4 million EVs on the road made up only 0.4 percent of global light vehicles.

“It [changing the mindset] is a natural process, but it would be easier if the infrastructure is there,” Zima said.

She cited Estonia, which launched a network of quick-charging stations in 2013 — more than 150 recharge points were installed at the time within a distance of at least 60 kilometers each — to encourage the use of EVs.

“It [infrastructure] garners people’s trust that they can use the new technology,” she said, adding that collaboration between the public and private sectors were required to make the infrastructure available.

Hong Kong, one of the world’s most densely populated cities, aims to make its residents enjoy more environmentally friendly transportation modes and phase down coal-fired electricity generation from 47 percent in 2016 to 25 percent in 2020, as stated in the country’s smart city blueprint released in 2017.

David Chung, the under-secretary for innovation and technology of the Hong Kong government, said the administration had allocated up to HK$78 billion (US$10 billion) for innovation and technology development.

Hong Kong saw EVs grow from four units in 2009 to around 11,000 last year despite only making up 1.3 percent of the current number of cars in the city. The EVs are supported by 1,800 public charging lots spread across 1.100 square km of land.

Chung said changing the mindset within the government was a must to realize its smart city goals.

“Cost has always been the biggest consideration. But every decision is a breakthrough. Therefore, together, we need to change the mindset to make progress,” he added.

Bandung Institute of Technology (ITB)’s Smart City and Community Innovation Center (SCCiC) director Suhono Harso said he believed that Indonesia would follow the global shift to electrical as the country had seen limited EV operations.

He emphasized that urban mobility should be “smart”, which would result in a well-planned, convenient, efficient and safe trip for people and environment.

The smart ways in urban mobility include not only EV commercial operations – which are a long way off with the Presidential Regulation (Perpres) on EVs still in progress — but more reliable real-time traffic information, adequate policies and continuous traffic enforcement.

Such an advancement would be achieved by integrated cooperation between the government, citizens and companies associated with transport systems and services, as well as shared and open use of infrastructure.

However, the acceleration of such smart mobility must come from strong leadership, Suhono said, citing the example of Surabaya in East Java, which saw the consistent implementation of smart city concepts under the leadership of Mayor Tri Rismaharini.

“It is not solely about technology, but more of impact, which is to increase people’s quality of life. Technology makes up only the third part. The remaining is process and stakeholder involvement,” Suhono said.

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