Wednesday, November 30, 2016

Indonesia's expiring production licenses valued at $10 billion

Indonesia's expiring production licenses valued at $10 billion

In a recent report, Indonesia's expiring PSCs: $10 billion of potential
upstream value, Wood Mackenzie valued Indonesia's expiring oil and gas
production licenses or production sharing contracts (PSCs) at close to $10
billion.

These 35 licenses account for over 1 MMboed of production in 2016 and will
face expiration in the next decade. The lack of clarity on license
extensions, and the scale of production at risk, make expiring PSCs one of
the biggest issues facing Indonesia's upstream sector.

Wood Mackenzie expects Indonesia's national oil company Pertamina to play a
key role in expiring assets with strategic value to the country, given its
interest to meet aggressive near (863,000 boed in 2017) to mid-term (2.2
MMboed in 2025) production targets.

Alex Siow, upstream research analyst, said, "Assets such as Offshore
Mahakam, Corridor and Jabung would be of interest to Pertamina as these are
material gas exporting projects with exposure to LNG and piped gas
contracts. Corridor and Jabung connect to the lucrative Singapore and West
Java markets, while Offshore Mahakam supplies LNG through the fully
depreciated Bontang liquefaction plant.

"Given financial and technical constraints, Pertamina could take on
operatorship in cooperation with service companies with the ability to
manage and produce under an integrated project management structure. Taking
up minority interest in more technically challenging projects will also
allow it to develop the skills needed on its own assets as they near
end-of-life."

The 35 licenses provide opportunities to a variety of players, from
experienced domestic players to new start-ups with new strategies, and fall
under four main categories: mature projects with upside, enhanced oil
recovery (EOR), late-life fields, and discovered resource opportunities
(DRO).

Mature projects with upside, such as Offshore Mahakam, Corridor and Jabung,
which account for over 80% of expiring PSCs, have extensive infrastructure
already in place and the potential to deliver stable cash flow. These
projects will be most suited for large, experienced operators.

EOR opportunities will require specialist expertise and advanced technology
to unlock remaining reserves and value via thermal, gas or chemical
injection. Chevron's Rokan, expiring in 2021, is one of the world's largest
steam injection projects and produces over 200,000 boed. However, the block
needs over $2.7 billion of investment annually to maintain output and
mitigate field decline.

Late-life assets offer potential for companies that can manage old
facilities and improve operational efficiency. These old fields also come
with potential decommissioning liabilities, which must be taken into
consideration. The biggest three, Sanga Sanga, South East Sumatra and East
Kalimantan, will expire in 2018.

DROs need a commercial solution to either challenging reservoir conditions,
difficult project economics or a lack of market demand, but may offer the
most straightforward opportunity for companies trying to build development
experience. However, the time to recoup investment can be much longer,
particularly given Indonesia's bureaucratic regulatory environment.

Indonesia's liquids production is expected to fall to a new low of 780,000
boed. With only a handful of new development projects in the pipeline, the
country is in dire need of fresh investment to reverse the impending decline
in oil and gas output.

The significant number of expiring licenses are a vital opportunity that if
used properly, can serve to revitalize the corporate landscape and inject a
fresh lease of life into many of the blocks. However, the Energy Ministry,
SKK Migas and Pertamina will need to align to ensure the continued survival
of the E&P industry in Indonesia.

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

Link to Original Article:
http://www.worldoil.com/news/2016/11/29/indonesias-expiring-production-licen
ses-valued-at-10-billion


--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com

Fledgling Cambodian solar industry sees glimpse of light

Fledgling Cambodian solar industry sees glimpse of light

The Cambodian government is slowly starting to accept and explore
opportunities for solar energy in the country, which has a growing need for
electricity to sustain its development.

But it seems unlikely that this form of renewable energy will substitute
coal power plants and large-scale hydropower projects, which come with
potentially-damaging environmental effects.

Cambodia has been identified as a hotspot - literally - when it comes to
solar radiation levels, but even with international investors lining up to
soak up the sun, the government is taking it "step by step".

In August, Singaporean firm Sunseap won the first government tender to build
a large-scale solar project in the country. Its output of 10 megawatts
remains modest compared to the mega hydropower planned or underway in the
country, but it is progress, according to the firm's director Frank Phuan.

"We are seeing clear signs from the Cambodian government on willingness to
expand the industry," he said. "I believe that the rate of solar
proliferation in the country will pick up."

If the sector is allowed to expand, there would be no shortage of interested
backers, according to John McGinley of Mekong Strategic Partners, a group
keenly eyeing opportunities in renewables.

"Geographically, it's spot on. There's a need, it's cheap and it makes sense
on so many levels," he said. "We just need to get this industry moving. But
we're definitely hearing the right sounds from the government."

About six million people are estimated to live without access to regular
grid power. Outages are common in rural areas, including regional hubs like
Stung Treng, which is close to the development of major hydropower dam
project Lower Sesan 2.

The government has said it understands the need to electrify the country and
has set bold targets to power up every household in some way by 2020.
Largely, hydropower has become the solution to Cambodia's power shortage
issue, with developers, mostly from China, filling a funding and expertise
void and taking charge of building dams across the country's rivers.

Most projects have long-term contracts and "take-or-pay" agreements, which
means that all electricity generated not used in the grid comes at a cost to
the government. While there are vast profits to be made during the
construction process, including by clearing swathes of forest, the heavy
investment poses financial risks.

For that reason, the government remains cautious when it comes to moving
ahead with solar energy, a technology it has long appeared sceptical of.

Cambodia's neighbours, however, have largely taken the plunge. McGinley
explained the speed and flexibility of solar energy, which many countries in
the region, notably Thailand and Vietnam, have taken advantage of.

"Compare what it would take to produce the same amount of power with hydro
versus solar. A hydropower dam that could take seven years to build, you
could build a similar capacity solar plant in six to 12 months. It's really
rapid to roll out," he said.

"We could take 200 hectares of shrub, bush land and build the same amount of
electricity. The cost of building transmission lines is really high, whereas
with solar you can build it where you need it."

It is a position largely supported by environment groups, including the
World Wildlife Fund (WWF), which produced a major report earlier this year
outlining the possibilities for renewable energy. It aimed to encourage the
government to transition from old technologies and identified solar as the
solution.

Concerns about the viability of dozens of large Mekong dam projects upriver
in Laos and China interrupting the natural flow of the river and more
intense dry seasons, as was experienced this year, have added to the calls
for change.

And there could be bigger things at stake.

"NOT JUST A DAM"

Cambodia currently has eight operational hydropower dams with a combined
maximum capacity of 1,049 megawatts of power, according to Open Development
Cambodia (ODC).

However, examining the pure number of dam projects or potential sites under
consideration highlights the possible extent of Cambodia's reliance on
hydropower. The data compiled by ODC lists a total of 73, including those
already being constructed or already completed.

While that would be unrealistic - politically, environmentally and
financially - the blueprint is indicative for a country that still currently
has zero formal renewable energy targets.

"Now Cambodia is in a transitional period. Hydropower actually is a very old
technology," said Oudom Ham, a leading environmental campaigner from
EarthRights International.

"If we do not look properly into the cost and benefits of hydropower dams,
it will impact many things. It will cause migration, it will cause social
unrest and people will keep blaming the government about human rights. It's
not just a dam."

Among those projects being seriously considered is the monstrous Sambor dam,
with a capacity of more than 1,000 megawatts. It poses major environmental
concerns and is slated to be built across the main Mekong River channel in
Kratie, although not likely for at least a decade.

Many doubts surround the viability of Sambor; a US team is currently leading
a study on the government's behalf. But there is no escaping dam projects
remaining firmly entrenched in Cambodia's future. And, realistically, there
is little choice in the matter.

"Developed countries want developing countries to do solar," said Tun Lean,
Under Secretary of State at the Ministry of Mines and Energy. "We need cheap
electricity to develop the country. Industry development requires cheap
power."

"If you request developing countries to use solar energy the same (way) as
Germany (does), the tariff is very expensive. How to do it?"

"Our master plan says that even if we promote solar, we need another
source."

McGinley agreed. "Solar can't be the answer on its own; there will be still
be a need for hydro or coal to some extent," he said. "But it's about
providing a better mix."

"The issue with solar is the technology, batteries that can store solar. But
that's not ready yet in Cambodia and it's not currently economical. The idea
is that in the dry season when the hydros are running with really low
productivity, they actually complement each other really well."

There is little citizen pressure on the government to implement greener
technologies, even on a small scale.

Currently, private solar installations such as on house rooftops are
technically illegal in Cambodia. The national power body - Electricite du
Cambodge - blocks individuals or private enterprises from generating their
own electricity, which would be fed into the grid should there be any
excess. It still remains wary about private citizens reducing their power
bills via feed-in tariffs.

While awareness and shifting attitudes could help encourage the government
to be more open to solar energy, what is more important is an urgent upgrade
to the national grid, according to Phuan.

"There is also a need to have more skilled labour with the necessary
technical skills to construct and develop these projects. Grid expansion and
upscaling are also crucial in making this vision a reality," he said.

For now, that reality is still on a shaky foundation. One way or another, it
is clear that Cambodia does not intend to be left in the dark.

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

Link to Original Article:
http://www.channelnewsasia.com/news/business/fledgling-cambodian-solar-indus
try-sees-glimpse-of-light/3293588.html


--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com

Indonesia: Villages may soon see the light

Indonesia: Villages may soon see the light

The government will soon issue a new rule to electrify 2,500 remote villages
with the help of the private sector that may need billions of dollars for
the cause.

These affected villages are part of the total 12,659 villages across the
country that it aims to electrify with renewable energy sources under the
Indonesia Terang (Bright Indonesia) program, the umbrella program of the
development plan involving the private sector.

The rule will allow private companies, provincial administration-owned
companies and cooperatives to set up off-grid power plant projects in remote
villages, 2,376 of which are located in Papua and West Papua.

The Energy and Mineral Resources Ministry's electricity development program
director, Alihuddin Sitompul, said the regulation had been signed by
Minister Ignasius Jonan and was being processed at the Law and Human Rights
Ministry.

"The government hopes to encourage the private sector and
provincial-administration owned companies to enter the small-scale
electricity business. With a maximum capacity of 50 megawatts [MW],
investors can act as mini versions of [state-owned electricity firm] PLN,"
Alihuddin said during a seminar held on Tuesday.

PLN is currently the sole electricity off-taker in the country. However,
with the impending regulation, private investors will be able to sell their
electricity directly to residents without having to go through PLN.

Private investors will also be requested to focus on procuring electricity
through a hybrid power system, supported by both renewable energy sources
and conventional fossil fuel sources.

A hybrid power system combines two or more modes of electricity production,
usually involving at least one renewable energy source to ensure the village
can maintain power 24 hours a day.

Alihuddin was upbeat that the private sector and provincial
administration-owned companies would be interested in the projects as the
government would offer subsidies as an incentive. However, he declined to
disclose any details.

Even though Indonesia recorded an electrification rate of 88 percent last
December, it was attributed to heavy concentration on Java, while eastern
regions have remained in the dark.

Lack of electricity in the regions has been mostly blamed on poor
infrastructure, which also contributes to high transportation costs.

The ministry previously said the development of electricity infrastructure
in Papua and West Papua would require Rp 156.02 billion (US$11.64 million)
and annual operating fees of Rp 191.9 billion.

Previously, PLN corporate planning director Nicke Widyawati said the company
had expressed its interest to the government in leading projects that could
be interconnected into its existing network and was already assessing
locations in Papua.

The ministry has remained quiet about whether the impending ministerial
regulation would also involve PLN.

The private sector, meanwhile, has expressed its readiness to take part in
the remote village electrification program.

Indonesian Chamber of Commerce and Industry (Kadin) deputy head for
bioenergy and water power Jaya Wahono said that the business group was
trying to submit funding proposals worth $8 billion to various international
groups, including World Bank financing arm International Finance Corporation
(IFC) and the Green Climate Fund (GCF), to meet the electricity procurement
plan.

The massive fund could help provide 300 kilowatts of electricity to one
village, where each house could get at least 450 watts of electricity.

"That way, the government can boost the economic growth in remote areas.
People in coastal villages, for instance, can use the electricity to build
cold storages for their fishery products," Jaya said.

Kadin has formed a partnership with the European Chamber of Commerce to
explore business opportunities available to European companies, which are
expected to invest in and transfer their technological knowledge to
Indonesia.

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

Link to Original Article:
http://www.thejakartapost.com/news/2016/11/30/villages-may-soon-see-the-ligh
t.html


--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com

Solar progress in Laos hindered by hydro focus

Solar progress in Laos hindered by hydro focus

Household solar systems have taken hold in Laos, but PV deployment on a
grand-scale is being held back by a focus on hydropower, according to
delegates at the Solar & Off-Grid Renewables Southeast Asia Event in
Bangkok.

A total of 30,000 solar household systems already installed in the country
under its Rural Electrification Fund, according to Anousak Phongsavath,
deputy director general, project manager, Rural Electrification
program-phase 2, Institute of Renewable Energy Promotion, Ministry of Energy
and Mines Lao PDR. He also touted the benefits of off-grid solar in reaching
the isolated areas of Laos as the country targets reaching 100%
electrification by 2025, from its current levels of 92-95%.

Phongsavath said: "We'd like to see participation of private companies and
other players to take part in this."

However, Andy Schroeter, chief executive, Sunlabob Renewable Energy, said
the introduction of solar will be difficult over the next couple of years
due to the government's focus on hydro. He said the energy minister is
against solar given the strong potential for hydro and the need to
incentivise solar. As a result, there has been very little movement on solar
for the last few years.

Schroeter added: "We need more power to convince the government."

On the other hand, Phongsavath said there is potential for 511MW of solar in
Laos.

The off-grid programme with a solar focus was introduced to grow the rural
economy and alleviate poverty. The government is also trying to promote
solar roofing in the city of Vientiane, especially since electricity tariffs
are rising each year and awareness of solar is growing as a result. Solar
household systems tend to come under a hire-purchase model involving a
10-year payback period with no interest.

Phongsavath also said there is a focus on trying to connect solar with
hydro.

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

Link to Original Article:
http://www.pv-tech.org/news/solar-progress-in-laos-hindered-by-hydro-focus

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com

Philippines: DENR's audit on coal plants now ongoing

Philippines: DENR's audit on coal plants now ongoing

The Department of Environment and Natural Resources (DENR) has already begun
its audit of all coal-fired power plants in the country which involves the
evaluation of their environmental compliance certificates (ECCs).

"So far, two coal plants have been audited ahead of the audit guidelines. We
have seen exceedance of different nature in both audits. I will reveal [the
specific plants] when all plants have been audited already," Environment
Undersecretary for Legal Affairs Maria Paz Luna told reporters on Monday,
November 21.

She further explained that they will select the 25 most critical environment
projects based on complaints received by the DENR, and whether the project
might cause irreparable damage to the environment. The department will audit
those projects first.

"Any conditions that remain unfulfilled with the ECC will result in a
suspension of the ECC if they can't comply with the condition," Luna added.

Environment Secretary Gina Lopez said "it doesn't make sense at all to have
any more coal plants." (READ: Lopez: Clean energy is the way to go)

"I've had 4 studies on coal plants done with two gentlemen with doctorate
degrees and in the 4 studies, the people's health suffered, agriculture
suffered, and fishery resource suffered. The economy suffered. And I kept
thinking, that's why coal is cheap, because the company doesn't pay for the
negative externalities," she explained on Tuesday.

She noted that the cost of renewable energy is already going down, and may
even be cheaper then coal in 5 years' time.

"What happens with coal is when you agree with coal, you're stuck with it
for 25 years. And if the price of solar goes down and other renewables go
down – and it's better to go to renewables because it's cheaper – then that
coal becomes a liability because the government has to continue to pay for
25 years to sign the contract."

She believes it makes "much more economic and benevolent sense" to run the
country's economy on "what we have, which is wind, solar, geothermal" energy
since the Philippines, she said, is not an industrial country.

"We have to gravitate towards a situation where renewable can adopt
baseloads. So I want to be able to do that in the convergence areas of
DENR," Lopez added.

President Rodrigo Duterte was initially hesitant about the Paris Agreement
on Climate Change because he believes addressing global warming should not
stymie the Philippines' bid to industrialize.

Under the agreement, countries agreed to keep global temperature rise this
century to below 2°C, with the aim of containing it below 1.5ºC, above
pre-Industrial Revolution levels, by cutting greenhouse gas emissions.

The Philippines pledged to cut by 70% its carbon emissions by 2030 – a
target conditional on assistance from the international community.

Duterte eventually agreed to sign the Paris agreement after he was persuaded
by his Cabinet. Lopez said she expects it to be ratified by the country this
year.

The landmark international climate pact already came into force this month.

During the recently concluded world climate conference, COP22, in Morocco,
Lopez got to talk to other countries such as Germany and France about
renewable energy.

The environment department already has initial plans to go renewable in at
least 3 areas: Sorsogon, Palawan, and Guimaras.

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

Link to Original Article:
http://www.rappler.com/nation/153201-philippines-denr-audit-coal-plants

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com

Malaysia: Mida okays RM2b RE investments

Malaysia: Mida okays RM2b RE investments

The Malaysian Investment Development Authority (Mida) approved investments
totalling RM2.07 billion in renewable energy (RE) projects in the first
eight months this year, up from RM1.37 billion approved for the whole of
2015.

Deputy chief executive officer ll Datuk N Rajendran said that in 2014 total
investments of RM1.2 billion were approved for similar projects.

"German companies not only continue to invest in Malaysia, but more
importantly in quality projects while incorporating the latest technology
and high value added activities," he told a press conference on the
sidelines of the RE Symposium Decentralised Power Generation in Kuala Lumpur
on Tuesday.

The one-day symposium, which gathered Malaysian and German RE-related
industry players, was organised by the Malaysia-German Chamber of Commerce
and Industry (MGCC).

Its executive director Daniel Bernbeck said Germany RE companies are keen to
establish joint ventures with Malaysian companies for decentralised power
generation projects, especially in solar energy, hybrid system and
mini-hydro in rural Sabah and Sarawak.

He said the opportunities for such projects were tremendous, given the lack
of access to sustained electricity and people have to rely on diesel
generators as well as other forms of alternatives, including RE.

"There is demand from the industry to electrify rural areas that don't have
the grid as we cannot foresee the connection to it in the next five years,"
he added.

Rajendran urged Malaysian companies to seize the opportunity to expose their
capabilities in securing investments from these potential RE projects.

"We call on Malaysia companies to engage with Mida and MGCC to venture into
the RE space and form collaborations with German companies," he said.

He said this initiative would also help Malaysia achieve the target of
securing 11% of RE contributions to energy mix by 2020, against 0.69%
currently.

In 2015, Malaysia-German bilateral trade amounted to RM43.3 billion. As of
August this year, Mida had approved 562 manufacturing projects with German
participation that involved investments of RM41.02 billion with over 66,430
jobs created.

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

Link to Original Article:
http://www.thestar.com.my/business/business-news/2016/11/29/mida-okays-rm2b-
re-investments-by-german-firms/


--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com

Ayala unit builds 67.8% stake in Philippine wind co

Ayala unit builds 67.8% stake in Philippine wind co

A fully-owned unit of Philippine diversified group Ayala Corp (PSE:AC) has
raised its stake in NorthWind Power Development Corp to 67.79% from 50%
previously.

Ayala's AC Energy Holdings Inc, through fully-owned unit Presage
Corporation, has bought an additional 17.79% stake in the Manila-based wind
power company.

NorthWind Power operates the first commercial wind farm in Southeast Asia.
The plant has a capacity of 51.9 MW and is located in Bangui, Ilocos Norte.
The Bangui project saw its first 15 turbines be installed in 2005 and was
expanded with an additional 11 turbines in October 2014.

The firm also has a renewable energy service deal for a wind project in
Aparri, the province of Cagayan.

AC Energy acquired its initial 50% NorthWind stake in 2011. Ayala did not
disclose the value of the latest deal.

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

Link to Original Article:
http://renewables.seenews.com/news/ayala-unit-builds-67-8-stake-in-philippin
e-wind-co-547830


--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com

Indonesia's isolated grids open for PV development

Indonesia's isolated grids open for PV development

A recent Asia Development Bank report found that Indonesia has 600 separate
grids.

Indonesia's multiple isolated grids represent opportunities for intrepid
solar developers, according to Andre Susanto, Clean Energy Consultant at
Bluejay Energy.

Speaking at the Solar & Off-Grid Renewables Southeast Asia event in Bangkok,
Susanto said the country's current installed power capacity of 50GW means
there is already potential for at least 2.5GW of renewables for the grids to
accommodate, but this is made complex by the many islands.

A recent Asia Development Bank report found that Indonesia has 600 separate
grids, not including the smallest sized systems and mini-grids. Of the 600,
Susanto said there are around 150 different isolated grids of 50MW size or
larger where renewables could be injected.

He added: "The grid integration challenge is one challenge that you will
have to be creative with both the technology and the financial engineering
of it. You've got to really talk to PLN, which is the state-owned utility
company, and figure out how can I be a partner? How can I help you run the
grid better and cheaper with my system?"

While developers coming in to build 100MW capacity projects are likely to
face problems from PLN due to the limted isolated grid capacities, solar
plants offering tariffs in extreme lows of US$0.04/kWh will have no trouble
signing PPAs with PLN, said Susanto.

The price threshold for PLN to get on board is particularly low in
Java-Bali, which currently has around 40GW of installed power generation so
PV developers' opportunities are in other areas, he added.

Elsewhere, Sumatra has installed power capacity of 8GW across four separate
isolated grids, leaving around 5-6GW in the rest of Indonesia.

The challenge of having to achieve low solar costs then becomes an
opportunity, because developers can look at the generation costs on each
individual isolated island grid. Some of these island system costs can be as
high as US$0.30/kWh. These are in remote areas, but they are not too remote
to access via shipping to install solar systems.

Susanto said: "Your EPC costs may be increased by 60%, but you can get more
than twice on the tariff. If you are willing to do that and take that risk,
that's an opportunity for you."

In terms of off-grid there is also potential for 1GW solar installations
given that there are 12,500 un-electrified villages, not including those
villages where only a fraction of the population has access to electricity.

Susanto added: "Indonesia is complex and if you are going to back away from
it you will be along with the rest of them, so you have to be the one who is
willing to say I see the challenges and I'm willing to find a solution for
[them]."

In contrast to Susanto, a recent BNEF report said that Indonesia's first
ever feed-in tariff (FiT) for solar PV projects should generate attractive
project returns in Java-Bali and Sumatra.

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

Link to Original Article:
http://www.pv-tech.org/news/indonesias-isolated-grids-open-for-pv-developmen
t

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com

Thailand delays oil and gas contract auction to 2018

Thailand delays oil and gas contract auction to 2018

The military government of Thailand has delayed a planned auction for
expiring oil and gas concessions held by national oil company PTT
Exploration and
Production (PTTEP) and Chevron from 2017 to 2018, due to delays in the
adoption of the Petroleum Act. When the auction was announced in August
2016, Thailand planned to open bids for the contracts in March 2017 and to
complete the auction in September 2016. The government now plans to open
bids in 2017 and to complete the auction in 2018.

The concessions for the Erawan gas field operated by Chevron and the Bongkot
gas field operated by PTTEP are due to expire in 2022 and 2023 and currently
produce 2.2 bcf/d (62 mcm/d, i.e. nearly 23 bcm/year) of gas, which
corresponds to more than 3/4 of gas production in the Gulf of Thailand. If
the auction fails to attract bidders, the government will negotiate
extensions with the existing holders of the concessions (Chevron and PTTEP
will be allowed to bid in the auction).

Thailand is currently amending its energy law, to add production sharing
contract terms to the existing concession contracts. The amendment is
expected to be completed by 2017. An auction for 29 new onshore and offshore
oil concessions, initially expected in 2011, is also scheduled in late 2017.


--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

Link to Original Article:
http://www.enerdata.net/enerdatauk/press-and-publication/energy-news-001/tha
iland-delays-oil-and-gas-contract-auction-2018_39077.html


--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com

Indonesia takes steps to increase power capacity by 6 gigawatt

Indonesia takes steps to increase power capacity by 6 gigawatt

Indonesian state-owned Perusahaan Listrik Negara (PLN) is attempting to
improve the country's ability to meet increasing economic demand for
electricity by getting stalled power projects off the ground.

34 power plant projects worth in the region of $828.8m have been held up for
the last seven years.

Jakarta Post reports that the projects were part of former president Susilo
Bambang Yudhoyono's administration's fast track programmes and account for
627.8 MW in capacity.

11 of the plants are coal-fired and PLN have decided to convert many of
these to gas-fired power as they are quicker to build.

The other 17 will continue as planned and the remaining six will be taken
over and continued by PLN through engineering, procurement and construction
(EPC) contracts.

PLN corporate communications head I Made Suprateka insisted that there would
not be significant losses from the termination of the 11 projects because
five of them had not started construction yet.

"So there has not been any rupiah lost, no money. The 34 stalled projects
are small with one power plant having an average capacity of 2x3 MW. The
average contract for each project was worth between Rp 200 billion to Rp 400
billion," he told reporters during a press conference.

The government's auditors are investigating why the projects did not proceed
under anti-graft regulations.

Apart from handling the stalled projects, PLN has been tasked with
completing President Joko "Jokowi" Widodo's ambitious program to procure an
additional 35,000 MW by 2019.

The 35,000 MW project succeeds the 10,000 MW policy launched by Yudhoyono
during his first presidential term in 2005, to keep reserve margins - the
difference between capacity and peak demand - within the International
Energy Agency's recommended level of 20 to 35 percent.

As the nation is at risk of a power crisis should the level decline to below
20 percent, Jokowi has taken the initiative to boost power capacity to
accommodate higher economic growth.

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

Link to Original Article:
http://www.powerengineeringint.com/articles/2016/11/indonesia-takes-steps-to
-increase-power-capacity-by-6-gigawatt.html?cmpid=$newtrackid&eid=287675795&
bid=1598328


--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com

Thailand: Southern coal plants scuppered again

Thailand: Southern coal plants scuppered again

The development and operation of two coal-fired power plants in Krabi and
Songkhla provinces may be delayed for another year, the third such delay in
three years, says energy permanent secretary Areepong Bhoocha-oom.

The two plants have been delayed from an original plan that scheduled the
two plants to start operations in 2019. Strong opposition from local
residents and environmental activists has postponed the projects several
times.

The 800-megawatt plant in Krabi and the 2,000MW plant in Songkhla's Tepha
district were delayed for the first time in 2014, putting off the projects
from 2019 to 2020. The latest setback is expected to push the timetable to
2023.

The reason for the latest delay is the development of high-voltage
transmission lines by the Electricity Generating Authority of Thailand
(Egat).

The delay in development of the transmission lines was largely because of
complicated paperwork about the rights to land plots along the route of the
lines, he said. The lines carry electricity from power plants in the central
region to the South, and are expected to transport power from the two new
coal-fired plants.

The first phase of development of the transmission lines was delayed until
next year, while the second phase was delayed to 2021, said Mr Areepong. The
operational date for the first phase is 2020 and the second phase is 2022.

Energy policymakers insist the country is at a crossroads in diversifying
its power supply. They are determined to build the two coal-fired power
plants to reduce Thailand's heavy reliance on natural gas in generating
power, as it contributes up to 70% of the total.

Demand for power in the South has risen substantially, especially during the
peak tourism season when demand exceeds the power-generating capacity of
2,600MW. Power demand is expected to rise by 8-10% each year, he said.

Egat governor Kornrasit Pakchotanon said power supply in the region has
reached a critical point because real supply is 2,600MW while demand during
peak hours in the high season is above 2,800MW.

Egat recently turned its fuel-fired Surat Thani power plant from standby
mode to active, raising power supply in the region to 3,088MW to meet rising
demand.

"If no new power plants are built and we don't diversify into coal, the
region's power supply may reach a crisis point," Mr Kornrasit said.

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

Link to Original Article:
http://www.bangkokpost.com/business/news/1147797/southern-coal-plants-scuppe
red-again


--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com

Tuesday, November 29, 2016

Vietnam: Gov't aims for stable power tariff

Vietnam: Gov't aims for stable power tariff

The electricity sector in 2017 will strive to prevent the power tariff from
stirring controversy, said Hoang Quoc Vuong, Deputy Minister of Industry and
Trade.

Vuong said the sector has not seen complaints about power tariffs this year,
as the prices have been kept stable. The sector has ensured power supply to
the production and consumption demand as well as national energy security in
the year of 2016.

A report from the Electricity of Vietnam (EVN) showed that in 2016, the
group planned to have power output of 175.9 billion kWh. Of which, the EVN's
power productivity would be 81.6 billion kWh, while that of purchasing power
output was 94.27 billion kWh and the commercial power output was 19.1
billion kWh.

As of October, total power capacity was 40,823 MW, including 15,368 MW of
hydropower plants; 13,826 MW from thermal power plants; 2,209 MW from small
hydropower plants and 395MW from imported power.

The National Oil and Gas Group (PetroVietnam) - one of the two big groups
providing fuel to thermal power plants said its gas supply next year was
expected to be lower than this year's. Therefore, PetroVietnam will continue
to work with its members to adjust the gas supplies in 2017 to meet with
power production demand.

Nguyen Van Bien, Deputy General Director of Vietnam National Coal and
Minerals Group (Vinacomin), said the group and Dong Bac Corporation have
been studying to design three new vessels to better serve coal
transportation. Vinacomin has also worked with three transport companies to
facilitate coal transport to thermal power plants.

This year, Vinacomin supplied around 4.8 million tonnes of coal to EVN
thermal power plants. The amount is expected to reach 5 million tonnes in
2017.

Deputy Minister Vuong asked all power companies to pay attention to power
plant maintenance to ensure safety, as there were some incidents this year.

He required PetroVietnam to ensure gas supplies for electricity production
while asking Vinacomin and Dong Bac Corporation to supply coal for 22 power
plants.

In addition, Vietnam will consider importing power from Laos if the tariff
was lower than local production costs.

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

Link to Original Article:
http://nangluongvietnam.vn/news/en/electricity/govt-aims-for-stable-power-ta
riff.html


--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com

Indonesia: Renewable energy targets difficult without private sector

Indonesia: Renewable energy targets difficult without private sector

Life may be a beach in the archipelagic country of Indonesia, but hot sun,
cool breeze or rushing waters alone is not enough to develop renewable
energy sector without private sector's involvement.

Energy and Mineral Resources Ministry's new and renewable energy director
general Rida Mulyana said recently that the government's desired energy mix
would be hard to realize with only limited funds in the state budget for the
development of renewable energy.

The government has set a goal to supply 23 percent of the national energy
mix from renewable sources by 2025 in order to cut down on carbon emissions
and wean itself from fossil fuels.

To reach the target, the General Planning for National Energy (RUEN)
stipulates that renewable energy must make up at least 11 percent of the
energy mix by 2017 or equal to 25.5 million tons of oil equivalent (mtoe).

However, the New and Renewable Energy Directorate General is facing a tight
budget with Rp 900 billion (US$66.32 million) removed this year due to
unexpected tax shortfalls, leaving only Rp 1.7 trillion in its coffers.

"The budget is not a large enough fund to reach the energy mix. The energy
mix can only be achieved with the help of private sector investors," Rida
said.

The uphill battle to develop the renewable energy sector has become more
challenging recently. Several months ago, the government proposed a Rp 1.2
trillion subsidy in next year's state budget to cover the price gap that
state-owned electricity company Perusahaan Listrik Negara (PLN) had to bear
in its operations.

The proposal was rejected by the House of Representatives' Budget Committee,
which argued that PLN could not be subsidized as a corporation.

The ministry has promised to issue a new regulation that would set a fixed
feed-in tariff for geothermal power to clear uncertainties for investors and
drive their investments higher.

Data from the ministry shows that as many as $1.198 billion worth of
investments were recorded in the renewable energy sector from January to
September, making up for 87.4 percent of this year's target.

A majority of investments went to geothermal energy at $840 million, equal
to almost 90 percent of what is expected throughout this year.

By the end of the third quarter, the total national electricity capacity
from geothermal energy reached 1,513.5 megawatts (MW), supported by the
installation of four new power plants.

The government is also waiting for developed countries to follow through on
their commitments to establish a $100 billion climate fund, following the
Conference of Parties 22 ( COP22 ) in Marrakech, Morocco, recently.

Once established, Indonesia will submit a funding proposal for several
programs to conserve and develop renewable energy, including the Indonesia
Terang (Bright Indonesia) program, which hopes to light up more than 12,000
villages across the nation with renewable energy.

Meanwhile, Private Electricity Producers Association (APLS) chairman Ali
Herman Ibrahim said that despite the country's vast resources, many
investors were reluctant to develop renewable energy sources due to piling
red tape.

"There needs to be a national consensus on developing renewable energy
because sometimes companies find it difficult to get things signed off on in
the regions," he said.

The Indonesian Renewable Energy Society (METI) chairman Surya Darma said
renewable energy in Indonesia is "always connected to lower cost pricing
policy, with a limited off-taker. This means there will be no market if PLN
does not buy electricity to distribute to the people".

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

Link to Original Article:
http://www.thejakartapost.com/news/2016/11/28/renewable-energy-targets-diffi
cult-without-private-sector.html


--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com

Solar Energy for Indonesia`s Remote Areas

Solar Energy for Indonesia`s Remote Areas

Ngakan Timur Antara, chairman of the Consortium for National Photovoltaic
Industry Self-sufficiency (KKIFN) at Photovoltaic Industry National
Consortium yesterday said that solar energy could be the solution to
overcome electricity problems, particularly in Indonesia's remote areas.

"Remotes areas have not yet connected to the PLN [state-owned electricity
company] power network, therefore, solar panel could become a good solution
as the technology continues to be developed, which hopefully will make it
more affordable," Ngakan said, as quoted by Antara news agency.

Ngakan said that the National Industry Development Masterplan (RIPIN)
stipulates that power generation industry, including solar panel industry,
is one of the top priority sector which will continue to be developed until
2035.

RIPIN further stipulates that construction of plants that turn materials
into solar power plant components and facilities to transfer technology in
solar cell industry are carried out jointly by the Government, State-Owned
Enterprises and private sector.

Ngakan said that reduced use of fossil fuel will cut greenhouse gas
emission, which in turn will positively impact in the efforts to save the
earth from global warming and tackle the challenges faced by human due to
food scarcity.

"The Government's commitment in reducing the use of fossil energy is
outlined in the Medium Term Development Plan (RPJMN), whereby the Government
sets up the policy and strategy to step up the role of new renewable energy
in energy mix," he noted.

Head of Energy Convesion Technology Center, Agency for the Assessment and
Application of Technology (BPPT), Andhika Prastawa said the efforts to push
for energy self-sufficiencey will boost strategic economic sectors,
including domestic industries.

He therefore supports the application of photovoltaic technology as an
alternative for power plants in regions across Indonesia.

"The hybrid of Diesel Power Plant (PLTD) and renewable energy will give a
positive impact on regions and open up the market for photovoltaic industry
in Indonesia," he said.

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

Link to Original Article:
http://en.tempo.co/read/news/2016/11/25/240823133/Solar-Energy-for-Indonesia
s-Remote-Areas


--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com

PetroVietnam Oil and Gas projects carried out ahead of schedule

PetroVietnam Oil and Gas projects carried out ahead of schedule

Information from PVN showed that in 11 months of 2016, PVN completed
investment and put into operation the RC -9 (9-lot) project at 6/6/2016
ahead by schedule by a month and 9 days, Tam Dao 5 self-lifting drilling rig
at 12/8/2016, and successfully launched the topside of BK Thien Ung gas
exploiting rig at 12/9/2016. Besides, the group also finished installation
of generator of the second unit of Thai Binh 2 thermal power plant at
12/4/2016.

Information also said that in 2016 PVN expects to reach the total petroleum
production in equivalent oil exceeded the year plan by about a million tons,
over 20 billion kWh of sale electricity, about 1.6 million of nitrogenous
fertilizer and 6 million tons of gasonline.

From the beginning of the year, PVN has repeatedly faced with deeply falling
oil price up to below $30 a barrenl for a long time that considerably
affected all activities of PVN. However, in 9 months the total production in
equivalent oil of PVN was 21.1 million tons exceeded the plan by 10%,
equivalent to 82.3% of the year plan. The industrial production value was
VND 369.5 thousand billion exceeded the plan by 11% to have an important
part in GDP growth rate of the country. The total turnover of PVN was VND
327.4 thousand billion and payment to state budged was VND 64 thousand
billion.

In the last months of 2016, PVN will continue to carry out exploitation of
3.88 million of crud oil (3.38 million tons from domestic fields and 0.5
million tons from oversea one) and 2.16 billion cubic meters of gas,
production of 5.8 billion kWh of sale eletricity, 417 thousand tons of
nitrogenous fertilizer and 1.469 tons of gasoline.

Therefore, the total turnover of PVN in 2016 will be about VND 514.5
thousand billion with a payment to state budged of VND 104.2 billion
(equivalent to $5 billion).

Regarding petroleum processing, the Dung Quat Refinery, Ca Mau and Phu My
Nitrogenous fertilizer Plants are increasingly proving high efficiency and
their important position in the economy Fertilizer Plants are increasingly
proving high efficiency and their important position in the economy by the
great market shares of gasoline and fertilizer.

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

Link to Original Article:
http://nangluongvietnam.vn/news/en/oil-and-gas/petrovietnam-oil-and-gas-proj
ects-carried-out-ahead-of-schedule.html


--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com

Indonesia's untapped geothermal reserves

Indonesia's untapped geothermal reserves

The following two titles caught my eye during the past week: "Quest for
insurance scheme for RI's geothermal future" by Pak Riki Ibrahim, president
director of PT Geo Dipa Energi, and "More policies needed to boost
geothermal use" by Fedina S. Sundaryani of The Jakarta Post.

Pak Riki stated that "Indonesia needs to come up with fiscal incentives and
that well-drilling exploration and development represent the largest risk
for geothermal development" and "no financial institutions in Indonesia
offer funding for geothermal exploration, where the lack of accurate data on
the geothermal potentials has discouraged banks from handing out loans to
companies that have won the geothermal tenders in Indonesia".

If exploration is not carried out there will be no accurate data and
something has to give.

Fedina's article stated that the Energy and Mineral Resources Ministry's
geothermal energy director Pak Yunus Saefulhak said, "that it was the
government who ideally conducted the thorough exploration in the fields,
before putting them up for tender, but due to a lack of funds, the
government could only rely on geological, geophysical and geochemical tests
to estimate the geothermal reserves".

It was also stated that "we all know that it costs around US$10 million for
drilling one exploration well [and] the government just does not have enough
funds to drill the 330 potential reserves,"(which would require
approximately $10 billion).

Both articles are telling the same story, one that we have heard several
times since two years ago when the government set an ambitious goal to
increase the national geothermal capacity to 7,155 megawatts (MW) by 2025,
which would make Indonesia the largest geothermal energy producer in the
world.

What we are now seeing is articles that are more or less saying why this
target will not be met — not directly, but indirectly.

Both articles are clearly stating that exploration needs to be done in order
to have reliable data to entice investors. We hear that the funds are not
available for this. Of course they are not if three drill holes are allowed
for each working area at a cost of $30 million, which by the way is
extremely expensive compared to many parts of the world.

Even if we take into account the location and terrain, there are cheaper
reliable drilling methods and there are cheaper reliable methods for
exploration.

A well-positioned geologist made the following statement to me in the past
few days: "The energy policy in this country needs to be holistically
managed, not partially as is the current practice."

As an outsider looking in and an insider looking out, it is painful to see
the huge potential that Indonesia has being wasted. Targets that are set are
not being met for all of the reasons under the sun.

Local banks and investors could easily invest in the geothermal development
of their own country if the risk of exploration is decreased by using
different technologies that would decrease the risk of drilling in the least
prospective location and by using drilling methods that will confirm the
full potential of the geothermal location and decrease the cost of drilling
by approximately four times or even more.

Exploring a surface manifestation only, or an area of 10 square kilometers,
is uneconomical. Larger areas need to be explored, which may help to decide
if the potential of the area has sufficient resources to make it economical
for development.

The following two quotes sum up what is not happening in Indonesia for
geothermal development and indeed, its natural resources:

"With the technology at our disposal, the possibilities are unbounded. All
we need to do is make sure we use it," wrote Stephen Hawking. "One of the
greatest pains to human nature is the pain of a new idea," wrote Walter
Bagehot.

Another quote (this time from the New Testament) sums up these two quotes:
"You are bringing some strange ideas to our ears and we would like to know
what they mean." Pokémon GO receives a better reception than technology for
exploration.

It staggers belief that a geothermal working area will have three holes
drilled based on basic exploration data. If nothing positive is found, the
potential will be downgraded to being a non-potential, based on what? Three
drill holes drilled at great expense in the least prospective fractured
location?

Fedina's article also stated that the National Energy Board (DEN) was
working with the ministry to prepare a regulation on the assignment of
preliminary surveys and exploration for the geothermal sector that will
allow the government to hire geothermal consulting firms through a limited
tendering to gather more accurate data on the fields.

Is this the way to go? The old idiom of "Pay peanuts, get monkeys" is
appropriate in a way, since the less you pay, the less reliable data you
will collect. Who will get the blame when the drilling does not come up to
expectations?

Likewise, who wants to enter a tender for a so-called prospective location
without reliable data? The answer should be no one. Therefore, the
government has to finance the exploration of geothermal locations with the
help of the existing Geothermal Fund Facility (GFF), which was established
in 2011 by the Finance Ministry to help accelerate geothermal energy
development. Five years on, it has not been utilized fully, if at all.

Traditional methods of exploration have their role, but as stated the
government does not have the funds. Therefore technology that does exist
needs to be used, technology that allows the focus to be in high-potential
areas that will avoid disruption and capital loss in lowpotential areas.

Technology does reduce the risk for drilling, the cost and time of
exploration. To put it very simply: "With the technology at our disposal,
the possibilities are unbounded." I.e., the whole of the ring of fire could
be explored with the expected cost being far lower than the $31 million it
currently costs to explore and drill in one geothermal working area.

With more than 150 volcanoes, of which 127 are active, Indonesia has an
abundance of geothermal reserves waiting to be tapped.

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

Link to Original Article:
http://www.thejakartapost.com/academia/2016/11/29/indonesias-untapped-geothe
rmal-reserves.html


--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com

Laos, Vietnam discussing fuel supply pipeline

Laos, Vietnam discussing fuel supply pipeline

Lao and Vietnamese governments have expressed their full support for the
construction of a pipeline that would deliver fuel from Vietnam to Laos,
reported local Vientiane Times on Monday.

The survey, design and feasibility study of the proposed pipeline have been
ongoing for several years. Vietnam's Minister of Transport Truong Quang
Nghia last week met with Lao Minister of Public Works and Transport
Bounchanh Sinthavong in Lao capital Vientiane to update him on the progress
in preparations for the pipeline with a view to keeping the project on
track.

The project would involve the building of two pipelines about 306 km in
length to carry diesel and petrol from a wharf at the Hon La coastal port in
Vietnam's central Quang Binh province to Lao central Khammuane province.

A warehouse to store the fuel would be built at Nhommalath district in
Khammuane province, which borders Quang Binh province, some 350 km southeast
of Lao capital Vientiane.

The government would require the investor in the project, Lao Petro Company,
to be responsible for the survey and construction of the pipeline, said
Vientiane Times, adding that the government will not provide funding for the
project, but fully supports construction of the pipeline.

It is expected that the results of these project components will be
presented to the Lao government at the end of 2016 to request authorization
to proceed, following which construction will begin if permission is given.

It is hoped that fuel prices in Laos will be lower once the pipeline is in
place as it is envisaged that the pipeline would cut the cost of
transporting oil products and ensure energy security for Laos. It will also
boost bilateral trade between Laos and Vietnam, as well as stabilize and
develop the Lao energy industry, said the report.

The project will include a wharf for vessels with capacities of some 50,000
tons, a 306 km-long oil pipeline and four pumping stations, and a warehouse
with a storage capacity of 100,000-200,000 cubic meters. The warehouse at
Vietnam's Hon La port is expected to be capable of storing 300,000-500,000
cubic meters of fuel products.

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

Link to Original Article:
http://www.china.org.cn/world/Off_the_Wire/2016-11/29/content_39804728.htm

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com

Vietnam: Grid power comes to Kien Giang's Island communes

Vietnam: Grid power comes to Kien Giang's Island communes

The Southern Power Corporation under the Electricity of Vietnam on November
26 fired up an 110kV cross-sea transmission line to supply electricity to
Lai Son Island of the southern province of Kien Giang.

With a total length of 43.9km, including 19.4km on land and 24.5km at sea,
the An Bien-Lai Son 110kV transmission line is the longest in Vietnam.

The line, whose construction commenced in September 2015, is among projects
providing power for island communes in Kien Hai, Kien Luong and Phu Quoc
districts and Ha Tien town.

As many as 2,000 households on the island are expected to benefit from the
VND 368 billion (USD 16.3 million) project.

The line will help promote socio-economic development, especially maritime
economy, in Lai Son Island in particular and Kien Giang province in general.

The Southern Power Corporation plans to build more transmission lines to
connect other islands in Kien Giang to the national grid, contributing to
developing the maritime economy and forming an island system in the
country's southwestern waters.

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

Link to Original Article:
https://www.vietmaz.com/2016/11/grid-power-comes-to-kien-giangs-island-commu
nes/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+vietmaz+%28
VietMaz%29


--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com

Philippines: Energy mix policy sought vs. power price spikes

Philippines: Energy mix policy sought vs. power price spikes

Power generator First Gen Corporation is urging government to formulate an
energy mix policy that would help shield consumers from price surges
affecting specific power plant fuels.

First Gen - the country largest electricity producer which has been relying
on natural gas as its main source of power - aired the call as prices of
coal exhibited more volatility than usual this year.

"Prices of coal have more than doubled between January and October this
year," First Gen president and COO Francis Giles Puno said. "Such price
volatility should give us reason to pause and think of other fuels we can
use to protect consumers from erratic fuel price movements. One solution is
to cap the share of specific fuels we use to generate our electricity."

Coal is the largest source of power for the country's power generators. Data
from the Department of Energy (DOE) showed that, as of June 2016, coal-fired
power plants accounted for 33 percent or 6,666 megawatts out of the
country's 20,055-MW total generating capacity.

But coal's share in the mix is expected to expand significantly in the
coming years.

According to the think tank Institute for Climate and Sustainable Cities
(ICSC), there are 4,600 MW of committed and another 6,900 MW of indicative
coal-fired power plants in the pipeline in the Philippines also as of June
2016.

With all those coal projects lined up, the country's dependence on coal
would increase to as much as 80 percent by 2030, global analytics firm IHS
said.

"We recognize the role of coal in the mix, but that kind of dominance being
forecast for this single fuel source will not be good for the economy,
especially now when coal prices have turned volatile," Puno said.

Coal prices, based on the benchmark Newcastle, traded as low as $49 per
metric ton at the start of 2016, but surged as high as $108 in late October.
So far this month, coal prices have hovered between $90 and $110/MT.

"Coal's volatility would expose consumers, including business
establishments, to drastic and unpredictable changes in their power bills,"
the First Gen chief said. "Households and businesses would find it
challenging to budget and manage their expenses."

He added that while coal has staged a rally this year, other energy sources,
including natural gas from Malampaya, have remained stable, if not cheaper,
than coal.

"If the share in the mix of other power plant fuels such as natural gas is
clear, they can help absorb price shocks from coal for the benefit of
consumers," Puno said.

Natural gas from Malampaya provides the fuel for First Gen's 1,000-MW Santa
Rita and 500-MW San Lorenzo combined-cycle power plants located in the First
Gen Clean Energy Complex in Batangas City. Both plants hold long-term
contracts to sell their output to Manila Electric Company.

The cost of the Malampaya gas is largely indexed against a basket of oil
products that include Dubai crude. The Brent oil benchmark, which closely
tracks Dubai crude, traded as high as $112 per barrel in 2014, but its price
now hovers below $50/barrel.

Based on First Gen's simulations, the average generation cost of coal-fired
power plants in the country would be P4.52 per kilowatt hour, if coal prices
stay at $100/MT. At $80/MT, the average generation cost of coal-fired power
plants would be P4.11/kWh.

These rates would be higher than the P3.71 /kWh generation cost of First
Gen's power plants using natural gas from Malampaya.

Even at US$60/MT for coal and US$43/barrel for crude, the average generation
cost of gas plants would still be competitive at Php3.71/kWh.

For comparison purposes, the simulations assume that the coal and natural
gas plants would run at a 90 percent capacity factor, while crude oil price
was assumed at the current rate of $43 per barrel.

Aside from natural gas, clean and renewable energy sources - such as
geothermal, hydro, wind and solar - provide the fuel to run First Gen's
plants. Their combined capacity adds up to 3,470 MW.

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

Link to Original Article:
http://business.inquirer.net/220355/energy-mix-policy-urged-guard-vs-electri
city-price-spikes


--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com

Monday, November 28, 2016

Palm oil demand from Indonesia biodiesel sector to surge by 2020

Palm oil demand from Indonesia biodiesel sector to surge by 2020

Indonesian demand for crude palm oil (CPO) for use in biodiesel will grow
nearly 70% by 2020, a government agency said on Friday, as the price gap
with conventional diesel narrows and more subsidies for blending become
available.

Indonesia, the world's top producer of palm oil, is pushing to increase
usage of biodiesel to cut its oil import bill andcurb greenhouse gas
emissions.

Its so-called B20 programme requires a minimum 20% blend of bio content in
diesel fuel this year, up from 15% in 2015.

The biodiesel sector's appetite for palm oil will increase to 10.6 MMt by
the start of the next decade from 6.3 MMt forecast for this year, said Bayu
Krisnamurthi, chief executive of the Indonesia Estate Crop Fund.

"Looking forward, we calculated that by 2020, 26% of palm oil will go to
biodiesel, so biodiesel becomes the new demand for the palm oil industry,"
Krisnamurthi said at a palm conference in Bali on Friday.

The fund is a government agency in charge of collecting palm oil levies to
finance biodiesel subsidies in the country.

"The gap is getting thinner," said Krisnamurthi, referring to the spread
between prices for biodiesel and conventional diesel coming down by around
30% this year as oil prices strengthened.

The palm industry hopes the drive towards biodiesel will provide underlying
support for prices for the edible oil, which hit a four-year high on
Thursday amid a forecast decline in Indonesia's palm oil output.

Meanwhile, the country is targeting a 90% increase in unblended biodiesel
consumption in 2017 to 5.5 MMkl from an estimated 2.9 MMkl this year, an
energy ministry official said.

The 2017 target is "with the assumption that there is an expansion of
subsidies", Dadan Kusdiana, secretary of the renewable energy directorate,
told reporters on Friday.

Indonesia started collecting a levy on its palm oil exports in July 2015 --
$50 per tonne for crude palm oil and $30 for processed palm oil products --
and uses part of that to help fund biodiesel subsidies.

Levies collected by the Indonesia Estate Crop Fund would also need to
increase to pay for additional biodiesel subsidies, Kusdiana said, adding
that his office had proposed an incremental increase.

The fund is targeting a 14% increase in levies collected in 2017.

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

Link to Original Article:
http://www.hydrocarbonprocessing.com/news/2016/11/palm-oil-demand-from-indon
esia-biodiesel-sector-to-surge-by-2020


--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com

Philippines: Mindanao now enjoys power supply surplus

Philippines: Mindanao now enjoys power supply surplus

Mindanao is now enjoying electricity supply surplus and is working to
sustain the development of power resources with renewable energy (RE) beyond
2020, a ranking official said.

The energy surplus is on account of the entry of baseload plants,
particularly coal fired facilities that have come online starting this year
and will continue in 2017 and 2018, Mindanao Development Authority (MinDA)
deputy executive director Romeo Montenegro said in an interview with The
STAR.

By then, the region will have a 70-30 energy mix in favor of fossil-fueled
power plants.

"With the entry of specific investments in industry, manufacturing and
services sector that are very much hungry for energy, we can comfortably say
now that Mindanao is able to address requirements of these investments," he
said.

Now, MinDA is working to accelerate the deployment of RE projects to meet
its 50-50 energy mix target by 2030.

"We're looking at assisting big ones that are currently on several phases of
application.plus other small ones," Montenegro said.

Among these projects are the 250-megawatt (MW) Agus 3 hydropower plant and
the 300-MW Pulangi 5 hydropower plant.

Agus 3 was already auctioned and is now preparing for financial closing,
while Pulangi 5 was among the contracts signed in China during the recent
visit of President Duterte.

"These two capacities already has combined 550 MW cheaper source of
capacity," Montenegro said.

Meanwhile, MinDA is currently monitoring applications of 280 projects, more
than half of which are run-of-river power projects ranging from 2.5 MW to 80
MW in capacity.

Montenegro said Mindanao has a geographical advantage of having many rivers
that's why a number of RE projects are run-of-river hydro plants.

A challenge with hydropower, however, is that, capacity is affected by
climactic change. That is why hydro plants need to be complemented with
other RE soures, Montenegro said.

"We need to look at the viability of other technologies such as biomass and
solar to complement the run-of-river set up since this cannot serve for 24
hours," the MinDA official said.

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

Link to Original Article:
http://www.philstar.com/business/2016/11/28/1648019/mindanao-now-enjoys-powe
r-supply-surplus


--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com

Indonesia: Pertamina to Manage ONWJ Oil and Gas Block

Indonesia: Pertamina to Manage ONWJ Oil and Gas Block

Energy observer asserted that state-owned oil and gas company PT Pertamina
has the ability to manage oil fields that will soon be relieved off of
private contractors hands', including the Offshore North West Java (ONWJ)
oil and gas block, by cooperating with regional-owned enterprises.

"About [oil and gas block] management, I think it can be flexible. If the
funds are enough, it would be better [for Pertamina] to manage the block by
them self. But there's nothing wrong with to open possibilities to cooperate
with other parties," said Komaidi Notonegoro, energy observer from
ReformMiner Institute on Sunday, November 27, 2016.

Komaidi said that Pertamina is currently gaining trust to manage oil and gas
blocks, specifically on blocks which contract has expired.

Ibrahim Hasyim, Chairman of the Oil and Gas Alumni said that there are a
number of oil and gas field contracts that will soon expire which will be
managed by state-owned companies and regional-owned companies. Later on,
Pertamina will decide whether to manage the blocks alone or through
cooperation with other business entities.

"There's no need to doubt Pertamina's [ability] because the company has
continued to display increasing production," Ibrahim said.

The Indonesian Government will officially hand over ONWJ block management to
Pertamina starting on January 19, 2017. However, the Government will also
provide a 10 percent ownership rights for Migas Hulu Jabar, a regional-owned
company in West Java.

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

Link to Original Article:
http://en.tempo.co/read/news/2016/11/28/056823620/Pertamina-to-Manage-ONWJ-O
il-and-Gas-Block


--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com

Vietnam: JA Solar breaks ground for solar cell plant

Vietnam: JA Solar breaks ground for solar cell plant

The ground breaking ceremony for JA Solar Ltd Co's US$1 billion solar cell plant was held on Saturday in the northern province of Bắc Giang.

The JA Solar plant has an investment capital of $320 million planned for the first three years. It is expected to have a yearly turnover of $500 million.

Earlier, JA Solar Hongkong Investment (JA Solar) – China's leading manufacturer of solar power products – signed a contract with Sài Gòn- Bắc Giang Industrial Zone JSC (SBG) to lease 88 hectares of land in the SBG's Quang Châu Industrial Zone for the factory.

The plant will also be one of the largest investments in the industrial zone and create more than 3,000 jobs.

JA Solar, a listed company with revenues of $2.15 billion last year, has eight factories manufacturing solar power products in Europe, the US and Japan.

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

Link to Original Article: https://www.vietmaz.com/2016/11/ja-solar-breaks-ground-for-solar-cell-plant/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+vietmaz+%28VietMaz%29

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com

Thailand: Solartron eyes Tesco Lotus project

Thailand: Solartron eyes Tesco Lotus project

SET-listed Solartron Plc (SOLAR) aims to join a bid due to be opened early
next year by Tesco Lotus to construct and operate solar rooftop projects for
its 32 branches with a combined power-generating capacity of 20 megawatts.

Solartron chief executive Patama Wongtoythong said the British hypermarket
chain will open bids on the second phase by the first quarter of next year.

The company already has 1 million square metres of solar rooftops in
Thailand.

Solartron last year won the first bid to construct solar rooftops with a
total capacity of 10.5MW for 13 branches of Tesco Lotus with an investment
budget of 420 million baht.

In the first phase, Solartron has already signed engineering, procurement
and construction (EPC) contracts and operation contracts for five years with
a total area of more than 100,000 sq m.

During the time the business remained in negative territory, Mrs Patama said
the company sought to tap into the rising trend of renewable energy by
diversifying into solar cell systems and offering EPC services instead of
only selling solar panels.

She said the company started diversifying into the EPC business and energy
service company (Esco) since early this year.

Last year, Solartron also joined a bid to construct and operate Thammasat
University's 20MW solar rooftop project at a cost of 350 million baht. About
one-third of the project has already started operation and the rest is
expected to be installed by January.

She said the Esco business was expected to remain on the rising trend this
year, particularly after energy policymakers last week announced the new
building energy law, requiring new building owners to install energy-saving
systems in their buildings.

Several state universities are following Thammasat's energy-saving
initiative, including Chiang Mai University, Naresuan University and
Songkhla Nakarin University.

Mrs Patama said Esco will be more attractive after energy policymakers plan
to allocate a 10-billion-baht budget to promote the Smart Building
initiative, which aims to cut energy consumption and boost efficiency.

"Almost 90% of our revenue over the past year came from EPC," she said.

The company will make its overseas foray with a plan to bid for a solar
power plant in Java, Indonesia with a total capacity of 26MW.

SOLAR shares closed Friday on the Stock Exchange of Thailand at 3.50 baht,
up four satang, in trade worth 4.4 million baht.

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

Link to Original Article:
http://www.bangkokpost.com/business/news/1146185/solartron-eyes-tesco-lotus-
project

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com

Sunday, November 27, 2016

Vietnam: First phase of Phu Lac Wind Power Plant inaugurated

Vietnam: First phase of Phu Lac Wind Power Plant inaugurated

A ceremony was held on November 25 in Phu Lac Commune of Tuy Phong District
in the south central province of Binh Thuan to inaugurate the first phase of
Phu Lac Wind Power Plant.

Covering an area of 400 hectares, the construction of the plant began in
July 2015, with a total investment of nearly VND1.1 trillion, of which 85%
funded by German Reconstruction Bank (KfW).

During the first phase, the plant will use twelve turbines under the
modernist technology of Denmark's Vestas brand, with a total capacity of
24MW.

In September, the plant went into commercial operation and successfully
joined the national grid, supplying around 200,000 KWh of electricity.

Through the operation of Phu Lac wind power plant, Vietnam Electricity can
make specific proposals to the Government on developing policies related to
renewable energy as well as the development of wind power in Vietnam.

Speaking at the inauguration ceremony, Kranz Plote, a representative of the
German Federal Ministry for Economic Cooperation and Development, emphasised
that the German side would continue to support Vietnam in reaching great
targets in the field of renewable energy.

Vice Chairman of the Binh Thuan Province People's Committee Luong Van Hai
said that the province has a great potential and strong assets for the
development of clean energy, particularly wind and solar power.

He hoped that the Government and relevant ministries and agencies would
pursue and employ reasonable policies and mechanisms to accelerate the
implementation of projects in the locale.

The facility is the third operational wind power plant in Binh Thuan,
together with those in Tuy Phong and Phu Quy Districts, increasing the
province's total wind power capacity from 36MW to 60MW.

Since joining the national grid, the plant has supplied 9.5 million kWh.

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

Link to Original Article:
http://energy.einnews.com/article/355537848/HVI8iX43btEFx8hy?lcf=2A7PCTa2-Ei
wAVwslDN-MQC06tONCNZ-s8_IkITijis%3D


--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com

Thailand: Ethanol plant partly closed after toxic emissions

Thailand: Ethanol plant partly closed after toxic emissions

An ethanol factory in Suphan Buri has been ordered to partly suspend
operations until it corrects procedures after local residents complained of
hydrogen sulfide emissions.

An Industry Ministry inspection at the plant of SET-listed Thai Agro Energy
Plc (TAE) in Dan Chang district found hydrogen sulfide levels exceeded the
allowable limit. It ordered the factory to close parts of its operation to
solve the problem by Dec 26, said Acting Sub Lt Supeepat Chongpanich, the
governor of Suphan Buri.

The investigation revealed that the poisonous gas had accumulated in a
treatment pond containing wastewater released from the plant as well as
rainwater from a severe storm on Oct 7.

The gas inflated the canvas covering the treatment pond, increasing the
pressure inside the pond to a risky level, so the company decided to release
the gas into the air and burn it, creating a foul odour that disturbed
nearby residents.

Officials said the company had installed one more pipe to remove around
3,800 cubic metres of gas per hour from the pond. It has also added chlorine
powder to the pond to eradicate microorganisms, reducing gas generation.

The company expects the disturbing gas smell will be diminished in five to
seven days.

Hydrogen sulfide is a colourless gas with a characteristic foul odour of
rotten eggs. It is heavier than air, poisonous, corrosive, flammable and
explosive

Established in October 2001, TAE received a licence to produce ethanol in
2003 and opened its first plant using molasses as raw material in 2005. The
company received an ethanol export licence in 2007 and in 2012 it opened a
second production line, bringing its capacity to 200,000 litres a day.

TAE was listed on the Stock Exchange of Thailand in June 2014. In the first
nine months of this year it reported a net profit of 168.5 million baht,
compared with 215.2 million in the same period a year earlier.

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

Link to Original Article:
http://www.bangkokpost.com/business/news/1145064/ethanol-plant-flagged-for-h
armful-emissions


--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com

Singapore: NEA to raise energy performance standards for refrigerators from December 2017

Singapore: NEA to raise energy performance standards for refrigerators from
December 2017

Continuing its drive to make households more energy efficient, the National
Environment Agency (NEA) is raising the energy performance standards of
refrigerators and phrasing out the least efficient ones.

From December next year, the NEA will raise its Minimum Energy Performance
Standards (MEPS) for each refrigerator category by between 5 to 13 per cent.
The least energy efficient one-tick refrigerator models, which make up about
15 per cent of the models currently available in the market, do not meet the
new MEPS and will be phased out when the new standards are introduced.

By switching from a one-tick refrigerator model to a three-tick model, a
household could save about S$75 in electricity bills each year, said the NEA
in a statement on Friday (Nov 25).

"There will still be a wide range of refrigerator models available to
consumers, and suppliers are also expected to introduce new models over
time. By choosing more energy efficient refrigerators, households can expect
to enjoy more cost savings over the operating lifespan of the refrigerators
and also help reduce Singapore's carbon footprint," added the NEA.

This move is part of the NEA's efforts to contribute to Singapore's Climate
Action Plan to reduce carbon emissions.

An NEA survey conducted in 2012 found that, in a typical household,
refrigerators were the third largest consumers of energy - after water
heaters and air-conditioning units - and account for about 18 per cent of
total household electricity consumption.

Since mandatory energy labelling was introduced in 2008 and MEPS for
refrigerators were introduced in 2011, the average efficiency of
refrigerators has improved by about 26 per cent, resulting in more than S$18
million in annual energy cost savings for households, or the yearly
electricity consumption of around 14,000 homes.

These measures have also led to a total carbon abatement of about 0.03 MT,
equivalent to the annual carbon emissions of around 9,000 cars, said the
NEA.

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

Link to Original Article:
http://www.todayonline.com/singapore/nea-raise-energy-performance-standards-
refrigerators-december-2017


--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com

Saturday, November 26, 2016

Malaysia: Renewable energy is violating human rights as much as fossil fuels have for decades

Malaysia: Renewable energy is violating human rights as much as fossil fuels
have for decades

Before she was killed, prominent indigenous activist Berta Caceres wrote a
letter to Victoria Tauli-Corpuz, the United Nations special rapporteur on
the rights of indigenous peoples.

"The threat to Rio Blanco has returned due to this new onslaught by DESA
Corporation," Caceres wrote in Spanish in Oct. 2015. She then asked
Tauli-Corpuz—whose UN role is to serve as an expert "investigator" of abuses
against indigenous people—to visit her community in Honduras, and
investigate "the severe violation of individual and collective human rights
of indigenous peoples in our country," they perceived from the development
of the Agua Zarca hydroelectric dam by the company Desarrollos Energéticos
S.A. (DESA).

In March 2016, Caceres was shot and killed in her home. Five people were
charged with her murder—including two men linked to DESA: a man named as a
"manager for social and environmental matters" in a statement by DESA and a
private security guard who had been employed by the company.

"This is not a safe world, especially for indigenous peoples," says
Tauli-Corpuz. "You cannot hide." For years, fossil fuel extractors have been
criticized for harming local communities; now, as the world moves towards
renewable energy, indigenous people are facing threats from those seeking to
make money in the new, green economy.

After the global climate agreement brokered in Paris last year, investment
in renewable energy is surging. Last year, the number of new renewable
energy installations outpaced the number of new fossil fuel installations
globally for the first time ever.

Eniko Horvath, a senior researcher at the Business & Human Rights Resource
Centre in London, says Caceres isn't the only human rights advocate to be
threatened or killed for resisting a green power project. "Despite the
increasing investment [in renewables] we've been seeing, we didn't see a
real conversation around the human rights impacts that these companies are
having," Horvath says.

This year, the Centre released a report on responsible renewable energy.
They reached out to 50 renewable energy companies about their approach to
human rights, and only five said they'd committed to following the
internationally recognized standard established in the UN Declaration on the
Rights of Indigenous Peoples, which prohibits resource extraction,
development or other investment projects on native land without the free,
prior and informed consent of the indigenous community.

The problem is the conflict of interest inherent in green energy
development, says Richard Taylor, chief executive of the International
Hydropower Association, a membership organization representing corporations,
engineers, and researchers working in the hydropower sector. "Many
developers are coming in with a perspective of getting a return on
investment," says Taylor. "They're not necessarily the best people to do a
rigorous preparation of a project; however, the expectation is on them. So
there is this conflict of interest about how much effort goes into the
preparation of a project."

In 2010, the World Bank and European Investment Bank financed the expansion
of geothermal energy production in Kenya and the construction of a
140-megawatt power station on land in the Rift Valley traditionally occupied
by the Maasai people. Then in 2014, Maasai leaders filed a complaint against
the World Bank, alleging the community was pushed off their lands without
proper consultation and resettled into a smaller area that could not support
their livestock, the source of their livelihood as pastoralists. "You are
evicted because it is in the national interest to have access to energy for
all," says Edna Kaptoyo of the Indigenous Information Network, a Kenyan NGO.
The World Bank eventually conceded it failed to adequately communicate with
the community in their language, and that they were not fairly compensated
for the loss of their land and livelihoods.

But it's complicated. Indigenous leaders are fighting for land rights and
against corporate "green-grabbing"—but they do genuinely want a just
transition to renewable energy. Indigenous groups are considered a
"frontline community" by environmentalists—they often experience the first
and worst effects of climate change. For generations, they have followed
weather and climate patterns for their agriculture and other means of
livelihood. When these patterns become less reliable, climate change can
have severe economic, social, and health impacts.

"For indigenous peoples, renewable energy has both its good and bad sides.
The good thing is we cannot deny that it can contribute to reducing
greenhouse gas emissions," says Tauli-Corpuz.

Human rights defenders like Tauli-Corpuz and Horvath contend that native
peoples' voices need to be included in development projects meant to
mitigate the effects of climate change, so that the vulnerabilities that
result from the uneven power dynamic between large fossil fuel companies and
local communities aren't replicated in the shift towards green energy.

"When solutions to climate change are brought to [indigenous communities]
they are not consulted nor is their consent obtained," says Tauli-Corpuz.
"I'm here to make sure human rights will be included." As the Paris
agreement was being negotiated last year, Tauli-Corpuz and other advocates
successfully pushed for human rights and indigenous peoples' rights to be
specifically named within the text.

Winnie Jimis, a member of the Orang Asli tribes of peninsular Malaysia, is
fighting another dam project in Sabah, Borneo, by working as the project
coordinator for the community organization Community-Led Environmental
Awareness for our River. "We don't want it," says Jimis. "It's going to
drown a settlement of our people. There are schools and clinics in the
village. It will drown the forest." The proposed Kaiduan Dam would submerge
up to 12 sq km of forest, and the project is already mired in controversy
after two senior water officials were arrested on graft charges in
connection to the dam and other federal projects.

As an alternative, Jimis advocates micro-hydro projects, like the small
hydroelectric dam in Long Lawen village in Upper Bakun, Malaysia. The Orang
Asli there have used the micro-dam to power lights and refrigeration for a
community of about 350 people since 2000. The community received about
$53,000 from several Malaysian NGOs to fund the project.

Bigger picture, some environmentalists have pushed to redefine what gets
categorized as "renewable energy" in an effort to limit damage on indigenous
communities. The Sierra Club, for example, supports small-scale dam efforts,
but condemns large-scale hydropower projects because of the damage they
inflict on wildlife and watersheds. Most influential international and
funding bodies, however, still consider large-scale hydropower renewable,
including the World Bank and the US House Committee on Natural Resources.

This year, Tauli-Corpuz presented a report to the UN General Assembly on the
violation of indigenous peoples' rights in the name of conservation. She
also submitted a report to the Human Rights Council on the state of
indigenous peoples in Honduras, condemning the killing of Caceres and
calling for the Honduran government to reconsider its contract with DESA and
revoke its licenses and permits.

"For me, the death of Berta [Caceres] is really very devastating and it
symbolizes a lot of what indigenous peoples' go through on day-to-day
basis," says Tauli-Corpuz.

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

Link to Original Article:
http://qz.com/845206/renewable-energy-human-rights-violations/

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com