News Clipping Archive - Page 996 of 1294

Renewables

The weekend read: PV could help clear Indonesia’s air

2 November 2019

–

Indonesia

The Institute for Essential Services Reform (IESR), an Indonesian think tank, has reported that the country has the potential to install up to 655 GW of rooftop PV capacity. Contrast that with a current installed capacity of just 100 MW, and it’s clear that solar PV still has a long way to go before it reaches its potential throughout Indonesia. Given the poor air quality in many heavily populated cities across the archipelago, PV deployment is long overdue in the Southeast Asian nation.

In August, the IESR drew up four assessments of Indonesia’s rooftop solar potential, based on variables such as roof pitch, shading orientation and local climate conditions. The lowest estimate in the studies was that 194 GW of rooftop capacity could be installed, which – if actually built – would generate almost 276 TWh of solar power per year. More optimistic scenarios see capacity potentially reaching anywhere from 267 GW to 462 GW. The most optimistic scenario is 655 GW, which would be equal to an astonishing 931 TWh of power output.

The provinces with the highest technical potential are East Java, West Java, Central Java, North Sumatra, Banten, Jakarta, Lampung, South Sulawesi, South Sumatra and Riau. Three provinces on the island of Java have the highest technical potential, based on the number of households that could be producer-consumers.

Two big cities, Surabaya and Jakarta, show strong market potential and could help state utility Perusahaan Listrik Negara (PLN) meet rising electricity demand. The studies on these two large cities examined the availability of rooftop space in detail. And pressing air quality concerns in these cities make the case for rooftop PV particularly compelling.

Greater Jakarta and Surabaya

Jakarta has a technical rooftop PV potential of up to 22 MW on its state government buildings, ministerial buildings, state hospitals, universities and big shopping centers. The capital, along with nearby cities such as Bogor, Depok, Tangerang and Bekasi, have 570,000 to 630,000 households with at least 45m2 of surface area available for rooftop arrays. With each household installing just 2 kW, the result would be around 1.2 GW of aggregate capacity.

University and school buildings, commercial buildings, government buildings and hospitals in Surabaya offer around 35.5 MW of potential. There is greater rooftop PV potential in Surabaya than in Jakarta, because HVAC (heating, ventilation and air conditioning) systems decrease the availability of rooftop space to install solar in the capital. Surabaya, with 85,000 to 93,000 45m2 of suitable homes, could generate up to 186 MW, based on 2 kW residential system sizes.

How these homes can be incentivized to install solar is another matter. In a variation on net metering, based on current Ministry of Energy and Mineral Resources (MEMR) regulations, each kilowatt-hour exported to the grid is credited with the equivalent of 0.65 units of PLN electricity.

This pushes payback periods for residential rooftop PV systems in Jakarta and Surabaya beyond 10 years. “Our market survey showed that customers demand a significant power bill reduction of more than 50% … from the current net-metering scheme this number would be hard to achieve,” said Marlistya Citraningrum, program manager of IESR. “These [current net metering] schemes create a 12-year payback period for solar PV installments.”

One million…

To support Indonesia’s ambitious target for 23% renewables by 2025, it established the “One Million Rooftop Solar” (Gerakan Nasional Sejuta Surya Atap, GNSSA) movement in 2017. The initiative aims to install 1 GW solar rooftop electricity capacity by 2020 by speeding up rooftop PV deployment in households, public facilities, commercial buildings, government buildings and industrial complexes.

Two years after its launch, “One Million” seems a million miles away. “In July 2017, we recorded around 200 users of solar rooftop in Jakarta. Up to 2019 the development just reached around 600 users,” explained Andhika Prastawa, head of the country’s top PV industry organization, the Asosiasi Energi Surya Indonesia (AESI).

“On average, each year the development is just 200 buildings or households that use solar panels. [It has] not yet developed as we all wished … The three main problems are licensing procedures, parallel charges for PV in the industrial segment, and net metering for household users.”

In terms of licensing, the previous system obliged solar rooftop installations starting with a capacity of 25 kVA to obtain certification (Sertifikat Laik Operasi, SLO). Starting from 200 kVA, a license to operate was required.

This regulation is a massive burden on small-capacity rooftop solar PV installations and it brought relatively high costs. Complicating matters further, the certification is provided by institutions that are not evenly distributed across Indonesia.

However, things are now moving in the right direction. On Sept. 6, the Indonesian er 500 kVA do not need certification or licenses to operate. Now, a simple assessment of installation safety standards will be sufficient.

Domestic content

Another barrier to solar deployment has been domestic content requirements. A 60% local content level has been legislated for rooftop arrays. “So far, we could accomplish just about 40%, as factories are not yet ready to produce the local components,” explained Andhika. He said that at present, solar cells have to be imported and that AESI is urging the ministry to delay the enforcement of this regulation.

“We encourage the government and the private sector to collaborate in this industry, so the upstream business can grow more, and the industrial ministry agreed to postpone the enforcement.”

(Not) net metering

The unfavorable net metering regime in place for state utility PLN is also holding back solar development. Previously a genuine 1:1 regime was in place for solar feed in, but in 2018 this was changed to the 1 – 0.65 system.

PLN had lobbied for the change, argues AESI, but the impact of even one million solar rooftop arrays would have been limited. If the one million rooftop solar panel movement (GNSSA) achieved its goal in 2020, PLN would lose only a total of 0.42% of its total electricity revenue. Merely small change for a big company, but enough to push back against – it seems.

“Regarding the net metering scheme, it has not yet changed from our last discussion with the ministries involved. The government focuses more on the industrial sector with its significant impact. The industrial sector rooftops can reach a capacity of at least 100 kW, but for home installation, it probably just reaches 1 to 5 kWh,” stated Andhika.

If commercial players want to install big capacity rooftop power and connect it to the PLN grid, they are subject to additional charges, some of which are calculated by tortuous means. The charges consist of a connection cost, capacity cost and power purchase cost (normal and emergency costs).

The capacity cost is calculated by the total net power generated, multiplied by 40 hours and multiplied again with applicable electricity rates. This calculation is a burden to the industries in implementing rooftop solar power.

“It is not proportional, especially as PV … does not operate for 24 hours, and 40 hours are too much. We foster communication with involved ministries, and they agree to reduce the number of hours to five,” said Andhika.

Possible solutions

The government could encourage the growth of PV by installing solar on government buildings and public facilities. This August, the Jakarta city government released regulations regarding the control of air quality. Since June, a public discussion has been underway in the capital, which has a population of 9.6 million, about its poor air quality. Jakarta is currently considered one of the most polluted cities in the world.

New regulations have been introduced in an attempt to improve the air quality in Jakarta – taking a multilayered approach. Boosting the installation of rooftop solar panels on schools, government buildings and state hospitals is a part of the government’s agenda to this end. The Ministry of Energy and Natural Resources has stated on its official pages that the Jakarta government’s target is to install up to 2 GW of solar rooftop capacity by 2022.

IESR welcomes these new initiatives and recommends that the Jakarta government also provides subsidies and discounts on land and building taxes for households to install rooftop PV panels. Such incentives could enhance the affordability of solar PV in the city and improve its return on investment for building owners.

“The perception of high-cost solar rooftop leaves the building owners longing for funding schemes in the form of installments with periods of at least five years and with other government incentives that could lower upfront costs, including a guarantee of product quality,” explained the IESR in a press statement.

“It is hard for the government to implement a 1:1 ratio, but installment packages or proper funding from the government could help to ease the [required] investment. Another way is to collect funding for green initiatives, as implemented in the EU to reduce the investment costs,” explained Andhika.

Contributions of public bodies could help the country hit its ambitious target of adding 6.5 GW of solar generation capacity throughout the country by 2025. The general planning brought by presidential decree 22/2017 mandates that solar panels should be installed on 30% of all government buildings. Other provinces such as Bali, Central Java and North Sumatra will also follow Jakarta’s plan to encourage rooftop PV installation through local regulations.

The electricity supply business plan 2019-2028, released by the Ministry of Energy and Natural Resources, wants renewable energy to account for 23.2% of the country’s energy mix. To meet this goal, rooftop solar will have to be increased to around 3.2 GW. This target requires around 1.6 million users, each with 2 kW rooftop arrays.

Energy Cooperation

PH, South Korea sign agreement on renewable energy cooperation

2 November 2019

–

Philippines

The Philippines and South Korea have inked an agreement to implement a memorandum of understanding signed in Seoul in June 2018 on renewable energy cooperation.

In a statement, South Korea’s Ministry of Trade, Industry and Energy said its vice minister, Cheong Seung-il, and Philippine Defense Undersecretary Cardozo Luna signed the implementing agreement Seoul on Oct 25.

Through the MOU, South Korea is helping DND’s (Department of National Defense) plans to build solar photovoltaic and other platforms of renewable power generation, which are intended to supply electricity to military facilities and surrounding areas.

In particular, South Korean entities are expected to take part in the development of projects that altogether represent 100 megawatts of generating capacity.

The MOU was among several agreements that were formally adopted during President Duterte’s visit to Seoul in 2018.

The full name is MOU for Cooperation on the Expansion of Renewable Energy Deployment between the DND of the Philippines and the Ministry of Trade, Industry and Energy of Korea.

DND Secretary Delfin Lorenzana signed for the Philippines, opposite Korea’s minister, Paik Ungyu.

Renewables

Laos hydro project switched on along dried-out Mekong

2 November 2019

–

Lao PDR

BANGKOK – A multi-billion dollar hydro-electric power plant on the Mekong river in Laos was officially switched on Tuesday, as drone images of dried-up downstream areas stirred fresh outcry on one of the world’s great rivers.

READ: World biggest hydroelectric dam planned for Africa

The Thai-owned Xayaburi dam has been a lightning rod for criticism even before construction began in 2012, with environmentalists warning of its devastating impact on the river’s fish species, sediment and water levels.

The Mekong, which rises on the Tibetan plateau and courses through China, Myanmar, Laos, Thailand, Cambodia and Vietnam — sustains tens of millions of people along its banks through fishing and transport.

But rapid development has alarmed communities along its banks, as well as conservationists who have observed shocking changes to the life-giving waterway.

Landlocked and impoverished Laos has set its sights on becoming “the battery of Asia”, with 44 operating hydro plants and 46 more under construction, according to the monitor International Rivers.

CK Power, a subsidiary of the builder and majority shareholder Ch Kanchang, went ahead with the $4.47 billion construction of the 1,285-megawatt project despite criticism.

“Xayaburi Hydroelectric Power Plant is ready to commence,” CK Power said in a statement Tuesday.

Developers plastered Thai newspapers with advertising touting the Xayaburi dam as a “fish-friendly power plant” and the “blueprint of renewable energy”.

READ: First SA hydroelectric plant to power the Northern Cape

But drone footage taken Monday downstream in Thailand’s Nong Khai province suggested a different story, as plummeting water levels exposed vast areas of parched river bed.

Pianporn Deetes, of International Rivers, said some parts of the Mekong in that region had experienced worrying drops in water levels since July coinciding with Xayaburi’s trial operations.

“They have monopolised the future of the Mekong’s ecosystems and of the river basin’s population,” she told AFP, adding it was difficult to fully evaluate because of a lack of information.

Contacted by AFP, the company did not immediately respond to requests for comment.

Thailand is supposed to buy almost all of the electricity generated by Xayaburi.

Still, a network of residents from seven provinces in Thailand issued an “urgent” plea Monday for the Thai government to mitigate the environmental impact of the Mekong dams.

“Today is the last day we will have the same life along the lower Mekong region,” they said in a statement.

The perils of the dam-building frenzy in Laos were laid bare last year when a massive hydro dam project collapsed in the south of the country, killing dozens.

Coal ,
Energy-Climate & Environment

Asia must quit ‘coal addiction’: UN chief

2 November 2019

–

ASEAN

The UN chief on Saturday warned Asia to quit its “addiction” to coal, as climate change threatens hundreds of millions of people vulnerable to rising sea levels across the region.

The warning follows fresh research this week predicting that several Asian megacities, including Bangkok, Ho Chi Minh City and Mumbai, are at risk of extreme flooding linked to global warming.

Antonio Guterres said Asian countries need to cut reliance on coal to tackle the climate crisis, which he called the “defining issue of our time”.

“There is an addiction to coal that we need to overcome because it remains a major threat in relation to climate change,” he told reporters ahead of a meeting of the Association of Southeast Asian Nations (ASEAN) in Bangkok on Saturday.

He said countries in the region need to be on “the front line” of the fight by introducing carbon pricing and reforming energy policies.

“We are lagging behind,” he said, adding that the rollback of coal could help curb rising global temperatures.

Coal remains a major source of power across Southeast Asia, where breakneck economic development has spurred soaring energy demands — but at a cost to the environment.

About one-third of Vietnam’s energy comes from coal power with a slew of new plants set to come online by 2050, while Thailand is investing in fossil fuels.

Coastal areas across Southeast Asia have already seen major floods and seawater incursion linked to climate change.

New research this week showed that at least 300 million people worldwide are living in places at risk of inundation by 2050, a much bleaker picture than previous data predicted.

Destructive storm surges fuelled by increasingly powerful cyclones and rising seas will hit Asia hardest, according to the study in the journal Nature Communications.

The UN chief also spoke on Myanmar’s persecuted Rohingya Muslims, nearly three-quarters of a million of whom were driven into Bangladesh in 2017.

He urged Myanmar’s government to “address the root causes of displacement and allowing of the return, voluntary and in safety and dignity” to Myanmar.

“Some steps have been done but they are too small. We need to do much more,” he said.

Myanmar’s de facto leader Aung San Suu Kyi is also in Bangkok for the summit and is likely to face pressure over her country’s treatment of the Rohingya, particularly from Muslim-majority Malaysia and Indonesia.

Myanmar has rebuffed all international pressure so far while only hundreds of Rohingya have returned to Myanmar, due to fear of further repression.

Renewables

Vietnam is leading Asean growing solar PV market

1 November 2019

–

Vietnam

SOUTH-EAST Asia’s cumulative solar photovoltaic (PV) capacity is expected to triple within the next 5 years, with large-scale solar projects dominating installation capacity before distributed solar installations pick up as project economics start to become more attractive, an energy consultancy group said.

Even though Asean is still an “emerging region” in solar PV installations, cumulative solar PV capacity is expected to hit 35.8 gigawatts (GW) in 2024, up from an expected rate of 12.6 GW for 2019, Wood MacKenzie said.

By 2024, small-scale solar should account for 32 per cent of the capacity additions, WoodMac said.

Within South-east Asia, Vietnam is the leader in the solar panel market with the largest installed capacity, making up close to half the region’s total capacity in 2019, WoodMac said.

Its data shows that the country’s cumulative solar PV installation will hit 5.5 GW this year, making up 44 per cent of South-east Asia’s total capacity. This compares with just 0.134 GW in 2018.

WoodMac noted that Vietnam awarded projects at US$93.50 per megawatt hour (MWh) under a feed-in tariff (FIT) programme for solar PV projects connected before end of June 2019. While bankability concerns existed, the project economics were attractive, delivering equity internal rate of returns in the mid-teens.

FIT is a payment made to renewable energy producers, which could be households or businesses generating their own electricity using renewable means, for each unit of energy produced and injected into the electricity grid.

WoodMac solar analyst Rishab Shrestha said FITs have proven to be an effective policy to inject rapid growth in renewables, and Vietnam’s build is another example of that.

Vietnam’s next FIT is expected to be applied through 2021, and WoodMac expects grid connection activity to peak at around the end of that year.

Grid expansion is also expected to increase grid capacity for solar in key southern provinces, as installed capacities exceed grid capacity. WoodMac expects this to go up by about 25 per cent in 2020, compared with 2019, but said more investment is needed to address curtailment concerns.

Other growing solar PV markets include Malaysia and Singapore.

WoodMac said Malaysia’s policy target is backed by a sound policy framework and offers sizable opportunities, as the country targets a 20 per cent renewable capacity mix by 2025.

As for Singapore, distributed solar is gaining momentum, WoodMac said, as it expects the national target of 350 MW by 2020 to be met. Singapore installed 56.7 MW in the first half of this year, exceeding the 2018 full year solar addition of 55.1 MW.

Renewables

RPT-Cheaper solar power gains ground in southeast Asia

1 November 2019

–

ASEAN

(Repeats story that ran late on Thursday, with no changes to text)

* Malaysia plans tender for 500 MW plant in Q2 2020 – minister

* Solar power price in latest tender mostly lower than gas

* Singapore to expand solar, energy storage in next decade

* Vietnam has 44% of SE Asia’s total solar capacity – Woodmac

By Koustav Samanta and Roslan Khasawneh

SINGAPORE, Oct 31 (Reuters) – Southeast Asia is accelerating plans to harness energy from the sun in coming years as the cost of generating electricity from some solar power projects has become more affordable than gas-fired plants, officials and analysts said.

The region, where power demand is expected to double by 2040, is striving to expand the share of renewable sources as developing nations seek affordable electricity while battling climate change.

Southeast Asia’s cumulative solar photovoltaic (PV) capacity could nearly triple to 35.8 gigawatt (GW) in 2024 from an estimated 12.6 GW this year, consultancy Wood Mackenzie says.

Vietnam leads the pack with a cumulative solar PV installation of 5.5 GW by this year, or 44% of the total capacity in the region, said Rishab Shrestha, Woodmac’s power and renewables analyst. This compares with 134 MW last year.

Among the encouraging signs for the solar industry was a recent auction for a 500 megawatt (MW) solar project in Malaysia of which 365 MW were bid at a price lower than the country’s average gas-powered electricity, said Yeo Bee Yin, minister of energy, science, technology, environment and climate change.

“For the first time in the history of Malaysia we have a large-scale solar energy costs that is less than gas, Yeo said at the Singapore International Energy Week.

“We now finally have an alternative energy that is cheaper than gas to replace our peak energy demand at midday.”

Malaysia has set a target to increase its renewable energy in electricity generation from current 6% to 20% by 2025, and a majority of this would be driven by solar.

The country also plans to open at least another 500 MW tender in the second quarter next year, Yeo said.

Singapore has also targeted at least 2 gigawatt (GW) peak of solar power capacity by 2030, or more than 10% of current peak electricity demand, potentially replacing natural gas which generates 95% of the country’s power now.

“This being presented by the (Singaporean) authorities is very interesting as this points towards firm political determination to go towards a low-carbon economy in a constrained world,” said Francesco La Camera, Director-General of International Renewable Energy Agency (IRENA).

Keisuke Sadamori, the International Energy Agency (IEA) director for energy markets and security said: “There needs to be some good measures to ensure that investors feel confident that their money could be returned in a relatively reasonable period.”

Still, the mushrooming of solar PV in Vietnam has exceeded its grid capacity by 18%, Woodmac’s Shrestha said, underscoring the need for further investments across power sector.

“The approved capacity for the Ninh Thuan and Binh Thuan provinces amounts to 5 GW, more than double the grid usable capacity,” he said.

Energy Efficiency

BCA expects 50 new MRT stations to save energy equivalent to that consumed by 7,500 flats

1 November 2019

–

Singapore

SINGAPORE – At least 50 new MRT stations are expected to meet the Building and Construction Authority’s (BCA) Green Mark for Transit Stations Platinum standard – the highest accolade for transit stations.

The BCA said on Friday (Nov 1) that reduction in energy consumption of these 50 stations on upcoming lines amounts to about 33GWh per annum – equivalent to what 7,500 four-room HDB flats consume a year.

The new Green Mark standard for transit stations takes into account how stations are designed, built and operated with environmental sustainability in mind.

Besides energy efficiency, the new scheme also considers criteria such as how well stations are integrated with their surroundings to provide “seamless connectivity and accessibility to all public transport nodes such as bus stops and taxi stands”.

The scheme also places high emphasis on the ventilation performance of station design, which enhances the comfort of users.

The North-South Line’s Canberra station – with its design that capitalises on natural light and ventilation – is the first to be accorded the Platinum award. It was commended for its extensive use of environmentally-friendly materials and products.

The BCA said the station incorporates edge planting, green roof and vertical greenery. It noted that the station is well protected against wind-driven rain, and yet is well-ventilated at all times.

It is also equipped with automatic dual-speed escalators, an energy-efficient lift system, LED lighting, water-efficient fittings and an irrigation system with rain sensor.

BCA chief executive Hugh Lim said: “BCA has been constantly reviewing and improving the Green Mark scheme to ensure that it remains relevant to the evolving needs of the people and the built environment. With the increasing demand for transit facilities, this new addition to the suite of Green Mark schemes will provide a holistic framework to enhance the sustainability of transit stations.”

Others

Top Thai energy firm PTT prepares IPO for retail unit

1 November 2019

–

Thailand

BANGKOK, Nov 1 (Reuters) – Thailand’s largest energy company PTT Pcl PTT.BK is in the process of filing for an initial public offering (IPO) for its retail unit, a top executive said on Friday.

State-owned PTT’s retail unit, PTT Oil and Retail (PTTOR), which owns coffee shops and gas stations, is preparing for the float, PTTOR CEO Jiraphon Kawswat said at a news conference.

“The filing is in process and there are procedures we have to follow because there are many parties involved,” Jiraphon said without giving further details.

PTT’s plans to take its retail flagship public comes at a time when firms in Thailand, as well as in the Philippines, are leading a revival in regional IPOs, spurred by growing investor interest in firms focused on Southeast Asian consumers.

Asset World Corp AWC.BK, the hospitality and property firm listed by Thai billionaire Charoen Sirivadhanabhakdi, and Philippine home furnishing retailer AllHome Corp HOME.PS have this year raised $1.6 billion and $285 million, respectively.

On Monday, Thailand’s largest industrial conglomerate, Siam Cement Group Pcl SCC.BK, announced plans to list its packaging unit, SCG Packaging, in what sources say could raise up to $1 billion.

Top Thai retailer Central Group, owned by the billionaire Chirathivat family, has also filed for the IPO Central Retail Corp, combining retail businesses in Thailand, Vietnam and Italy. Refinitiv IFR has pegged the IPO size at between $1 billion and $2 billion.

PTT Oil and Retail, best-known for its Cafe Amazon coffee chain which has 2,800 stores across the country and 200 branches in Singapore, China and Oman, plans to expand its non-oil business, CEO Jiraphon said. “The proportion of profit from the non-oil business will increase.”

PTTOR has 1,850 gas stations in Thailand and 280 gas stations throughout the region in Laos, Cambodia and the Philippines.

“We also plan to grow inorganically through investments in new businesses and joint ventures in Thailand and overseas,” Jiraphon said.

($1 = 30.1700 baht)