Philippines: Meralco evaluates bids challenging Citicore offer
On June 28, Meralco invited solar power developers to challenge the offer
made by Citicore as required by the rules issued by the Energy Regulatory
Commission (ERC) on competitive selection process (CSP). It set the deadline
for submissions on July 25.
"BAC [Meralco's bids and awards committee is] currently assessing if
submissions complied with qualifying requirements," said Lawrence S.
Fernandez, Meralco vice-president and head of its utility economics, when
asked about the outcome of selection process.
Citicore offered to Meralco the output of its three solar power plants,
namely: Next Generation Power Technology Corp. (NGPTC), First Toledo Solar
Energy Corp. (FTSEC) and Silay Solar Power, Inc. The plants are in
Mariveles, Bataan; Toledo, Cebu; and Silay, Negros Occidental.
Under the deal, the plants are to deliver at least 75 megawatts (MW) up to
85 MW from the first to the fifth years of a 20-year contract. From the
sixth to the 20th year, the supply was placed at 85 MW. The contract date is
to start upon the approval of the ERC.
The offered price at P3.5 per kWh is subject to a 1.5% annual escalation
beginning from the second to the 10th contract years, and 1% from the 11th
to the 20th contract years. In both cases, the escalation is applied to 100%
of the offered price.
In its invitation for price challenge, Meralco said an offer made by a
challenger should be under the same terms and conditions of the power supply
agreement (PSA) provided by the distribution utility, except for the
financial proposal.
Should Meralco not receive any expression of interest by 4:00 p.m. of July
10, it will declare a failure of the price challenge process. The company
did not immediately reply whether there would be a second round of price
challenge.
A previous PSA reached between the utility and two solar power developers
had become the "reference" for new projects that have no guaranteed
feed-in-tariff (FiT).
Under the government's FiT scheme, solar power investors were awarded a rate
of P8.69 for every kilowatt-hour they export to the electricity grid. The
installation target for that scheme had been fully subscribed.
Based on Meralco's previous two PSAs with separate solar power developers,
the reference rate should be within a range of P4.69 to P5.39 per kWh. The
distribution utility is awaiting approval from the ERC for the two separate
power supply deals.
Last week, Citicore said a certificate of compliance had been awarded to
FTSEC and NGPTC after they had completed the necessary permits and
requirements to operate their respective power generation facilities.
NGPTC secured its certificate on July 6, while FTSEC obtained its own on
July 18. The certification proves that a power plant meets applicable
regulations, making it safe to switch on and operate. Existing rules require
the ERC certificate to operate a new power generation facility.
Meralco's controlling stakeholder, Beacon Electric Asset Holdings, Inc., is
partly owned by PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT
Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in
BusinessWorld through the Philippine Star Group, which it controls.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.bworldonline.com/content.php?section=Corporate&title=meralco-eval
uates-bids-challenging-citicore-offer&id=149010
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Monday, July 31, 2017
Vietnam: Vinacomin will divest the state capital at Vinacomin - Power Corporation
Vietnam: Vinacomin will divest the state capital at Vinacomin - Power
Corporation
Vietnam National Coal - Mineral Industries Holding Corporation Limited
(Vinacomin) divest the state capital at Vinacmin - Power Corporation by
decreasing it from 99.68% to 65%. This is the information given by Mr.
Nguyen Van Bien, Vinacomin Vice General Director at the conference
"Investment opportunity to Vinacomin Power Corporation (Code: DTK - UpCOM)"
on July 26, 2017.
According to the report of Vinacomin, at present, the total charter capital
of Vinacomin Power is 6,800 billion VND (680 million shares with 10,000 VNĐ
each). Thus, the shares divested this time will be 235,808,500 (equivalent
to 2,358 billion VND).
From a 100% state-owned enterprise, Vinacomin Power has been equitized since
January 15, 2016.
Mr. Bien also informed that in the next step of restructuring project,
Vinacomin will decrease the state capital to 51%. Further, in accordance of
Government directions, Vinacomin will assess how to appropriately divest and
satisfy the desire to increase the stocks of the shareholders.
At present, Vinacomin Power owns 7 coal-fired thermal power plants (TPPs)
with a total capacity of 1,730 MW and average generation of 9.5 billion kWh,
recent years. All the TPPs of Vinacomin use Circulating Fluidized Bed (CFD)
boilers suitable for poor quality coal as dust 6B, 7B.
Besides, Vinacomin Power also holds about 5 - 10% of shares in three other
TPPs which have a total capacity of 3600 MW.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://nangluongvietnam.vn/news/en/coal-mineral/vinacomin-will-divest-the-st
ate-capital-at-vinacomin-power-corporation.html
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Corporation
Vietnam National Coal - Mineral Industries Holding Corporation Limited
(Vinacomin) divest the state capital at Vinacmin - Power Corporation by
decreasing it from 99.68% to 65%. This is the information given by Mr.
Nguyen Van Bien, Vinacomin Vice General Director at the conference
"Investment opportunity to Vinacomin Power Corporation (Code: DTK - UpCOM)"
on July 26, 2017.
According to the report of Vinacomin, at present, the total charter capital
of Vinacomin Power is 6,800 billion VND (680 million shares with 10,000 VNĐ
each). Thus, the shares divested this time will be 235,808,500 (equivalent
to 2,358 billion VND).
From a 100% state-owned enterprise, Vinacomin Power has been equitized since
January 15, 2016.
Mr. Bien also informed that in the next step of restructuring project,
Vinacomin will decrease the state capital to 51%. Further, in accordance of
Government directions, Vinacomin will assess how to appropriately divest and
satisfy the desire to increase the stocks of the shareholders.
At present, Vinacomin Power owns 7 coal-fired thermal power plants (TPPs)
with a total capacity of 1,730 MW and average generation of 9.5 billion kWh,
recent years. All the TPPs of Vinacomin use Circulating Fluidized Bed (CFD)
boilers suitable for poor quality coal as dust 6B, 7B.
Besides, Vinacomin Power also holds about 5 - 10% of shares in three other
TPPs which have a total capacity of 3600 MW.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://nangluongvietnam.vn/news/en/coal-mineral/vinacomin-will-divest-the-st
ate-capital-at-vinacomin-power-corporation.html
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Philippines: Meralco solicits bids for 85-MW solar deal
Philippines: Meralco solicits bids for 85-MW solar deal
Manila Electric Co., the country's largest power retailer, issued an
invitation to other renewable energy developers to challenge the price
offered by Citicore Power Inc. for the supply of up to 85 megawatts from
three solar power plants at P3.50 per kilowatt-hour.
Meralco said in a published invitation for a price challenge that Citicore
offered to supply 75 MW to 85 MW of capacity from its three solar plants,
including Next Generation Power Technology Corp. in Mariveles, Bataan, First
Toledo Solar Energy Corp.in Toledo, Cebu and Silay Solar Power Inc. in
Silay, Negros Occidental.
Meralco is required to publish an invitation for a price challenge under the
competitive selection process rules of the Energy Department and the Energy
Regulatory Commission.
The distributor said the price challenger's solar plant should be able to
deliver power 20 years from commencement of the contract period.
Meralco said the price challenger's power plant must be covered by a solar
energy service contract with the Energy Department and should have a valid
certificate of registration as a renewable energy developer.
The price challenger must own and control the power plant.
Meralco said the price challenger must also show satisfactory evidence that
it had the financial capacity to fulfill its obligations to the company.
Qualified price challengers were given until Aug. 14 to submit their
financial proposals to Meralco.
Citicore's P3.50 per kWh price offer is lower compared to the offers of
Solar Philippines Tanauan Corp. and PowerSource First Bulacan Solar Inc.
Meralco has a pending application with the ERC for approval of its power
supply agreement for the supply of 50 MW capacity from Solar Philippines at
P5.49 per kWh.
Meralco also has a separate pending application for a 50-MW supply agreement
with PowerSource First Bulacan Solar Inc. at P4.69 per kWh.
Manolo Candelaria, Citicore Power executive vice president for commercial
and development operations, said two other companies bought bid documents
intending to challenge the company's price offer to Meralco.
Candelaria said the P3.50 per kWh rate was "based on our assessment of
current government policy directions and industry competition."
Citicore Power is a renewable energy company committed to reducing
greenhouse gas emissions through solar, wind, hydro, and biomass projects
across the Philippines and Asia.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://thestandard.com.ph/business/power-technology/243220/meralco-solicits-
bids-for-85-mw-solar-deal.html
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Manila Electric Co., the country's largest power retailer, issued an
invitation to other renewable energy developers to challenge the price
offered by Citicore Power Inc. for the supply of up to 85 megawatts from
three solar power plants at P3.50 per kilowatt-hour.
Meralco said in a published invitation for a price challenge that Citicore
offered to supply 75 MW to 85 MW of capacity from its three solar plants,
including Next Generation Power Technology Corp. in Mariveles, Bataan, First
Toledo Solar Energy Corp.in Toledo, Cebu and Silay Solar Power Inc. in
Silay, Negros Occidental.
Meralco is required to publish an invitation for a price challenge under the
competitive selection process rules of the Energy Department and the Energy
Regulatory Commission.
The distributor said the price challenger's solar plant should be able to
deliver power 20 years from commencement of the contract period.
Meralco said the price challenger's power plant must be covered by a solar
energy service contract with the Energy Department and should have a valid
certificate of registration as a renewable energy developer.
The price challenger must own and control the power plant.
Meralco said the price challenger must also show satisfactory evidence that
it had the financial capacity to fulfill its obligations to the company.
Qualified price challengers were given until Aug. 14 to submit their
financial proposals to Meralco.
Citicore's P3.50 per kWh price offer is lower compared to the offers of
Solar Philippines Tanauan Corp. and PowerSource First Bulacan Solar Inc.
Meralco has a pending application with the ERC for approval of its power
supply agreement for the supply of 50 MW capacity from Solar Philippines at
P5.49 per kWh.
Meralco also has a separate pending application for a 50-MW supply agreement
with PowerSource First Bulacan Solar Inc. at P4.69 per kWh.
Manolo Candelaria, Citicore Power executive vice president for commercial
and development operations, said two other companies bought bid documents
intending to challenge the company's price offer to Meralco.
Candelaria said the P3.50 per kWh rate was "based on our assessment of
current government policy directions and industry competition."
Citicore Power is a renewable energy company committed to reducing
greenhouse gas emissions through solar, wind, hydro, and biomass projects
across the Philippines and Asia.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://thestandard.com.ph/business/power-technology/243220/meralco-solicits-
bids-for-85-mw-solar-deal.html
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Vietnam hopes to export renewable energy equipment by 2050
Vietnam hopes to export renewable energy equipment by 2050
At a recent conference on the development of small and medium-sized
hydropower plants and renewable energy, Pham Trong Phuc, head of the
Ministry of Industry and Trade's General Department of Energy spoke about
the country's renewable energy development plan.
According to Thuc, Vietnam's localisation rate of renewable energy equipment
is expected to reach 30% by 2020 and 60% by 2030. The country has set a
target to export the renewable energy equipment by 2050.
Renewable energy is also expected to meet 5% of demand for means of
transport in Vietnam by 2020 and the rate is aimed to be raised by 13% by
2030 and 25% by 2050.
By 2030, 100% of Vietnamese families are expected to use equipment run by
renewable energy and the rate is 30% by 2020 and 60% by 2025.
In reality, nearly 90% of equipment for renewable energy production is still
imported from China, Germany, India and the US.
Meanwhile, the rate of Vietnamese companies involved in this sector is very
modest.
Some equipment for wind energy produced by foreign-invested companies in
Vietnam has been exported to the US and Australia.
The Vietnamese government has issued policies to support for the renewable
energy sector, including tax exemptions for imported equipment and land use
for projects in this field.
The Ministry of Planning and Investment reported that to date Vietnam has
licensed 16 renewable energy projects valued at nearly USD800 million.
Experts said that Vietnam holds huge potential for renewable energy
development. Solar energy is abundant with an average solar radiation of
5kWh/m2 per day across the country, while bio-mass output from agricultural
production and waste are estimated at 10 million tonnes a year.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://english.vietnamnet.vn/fms/business/182887/vietnam-hopes-to-export-ren
ewable-energy-equipment-by-2050.html
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
At a recent conference on the development of small and medium-sized
hydropower plants and renewable energy, Pham Trong Phuc, head of the
Ministry of Industry and Trade's General Department of Energy spoke about
the country's renewable energy development plan.
According to Thuc, Vietnam's localisation rate of renewable energy equipment
is expected to reach 30% by 2020 and 60% by 2030. The country has set a
target to export the renewable energy equipment by 2050.
Renewable energy is also expected to meet 5% of demand for means of
transport in Vietnam by 2020 and the rate is aimed to be raised by 13% by
2030 and 25% by 2050.
By 2030, 100% of Vietnamese families are expected to use equipment run by
renewable energy and the rate is 30% by 2020 and 60% by 2025.
In reality, nearly 90% of equipment for renewable energy production is still
imported from China, Germany, India and the US.
Meanwhile, the rate of Vietnamese companies involved in this sector is very
modest.
Some equipment for wind energy produced by foreign-invested companies in
Vietnam has been exported to the US and Australia.
The Vietnamese government has issued policies to support for the renewable
energy sector, including tax exemptions for imported equipment and land use
for projects in this field.
The Ministry of Planning and Investment reported that to date Vietnam has
licensed 16 renewable energy projects valued at nearly USD800 million.
Experts said that Vietnam holds huge potential for renewable energy
development. Solar energy is abundant with an average solar radiation of
5kWh/m2 per day across the country, while bio-mass output from agricultural
production and waste are estimated at 10 million tonnes a year.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://english.vietnamnet.vn/fms/business/182887/vietnam-hopes-to-export-ren
ewable-energy-equipment-by-2050.html
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Singapore electricity sector to see shake-up with full liberalisation
Singapore electricity sector to see shake-up with full liberalisation
THE future of Singapore's electricity sector is starting to take shape as
the country approaches the last leg of a long journey in the liberalisation
of the market.
With 25 electricity retailers slugging it out for a pie of the market that
will be fully liberalised next year, the range of new services they will
offer - by tapping various new technologies and new business models - will
no doubt bring immense benefits to end-consumers.
To keep up, however, the Energy Market Authority (EMA) will have to redraw
some of the current regulations. And given how incumbent power generation
companies have warned that the current market situation is unsustainable and
posing severe financial strain for them, it will also have to keep a
watchful eye on the market.
The full liberalisation of the market has been a long time coming. Since
2001, steadily more consumers have been handed the freedom to switch from
buying electricity at the regulated tariff from SP Services to buying from
an electricity retailer which offers packages with different price plans.
At the moment, only consumers using above two megawatt-hour (MWh) - mainly
industrial and commercial consumers - can do so; another 1.3 million
consumers, mainly households, will enjoy this flexibility by the second half
of 2018.
Ahead of this, the number of electricity retailers has surged, from seven in
2013 to the current 25 - a number that continues to grow.
It has also changed the way incumbents operate here.
For instance, Sembcorp Industries, which is in the midst of a strategic
review after new CEO Neil McGregor arrived at the group, has signalled its
intent to move into the solar space in Singapore through a recent S$3.3
million acquisition of two operating rooftop solar facilities from REC
Solar.
The "small but significant" acquisition will complement the group's
electricity generation and retail capabilities in the country, said Mr
McGregor in a statement.
The Singapore government, while firm on the stance that it will not
subsidise solar power, has also done its part to spur solar adoption.
JTC last month gave Sun Electric the rights to install solar panels on the
rooftops of 27 JTC buildings, and to export the solar energy into the grid
which can also be sold to users in other buildings. This marked a new
business model as previously, power generated under solar leasing models
primarily served users of the building itself before excess energy is
brought into the grid.
Government agencies have also aggregated their solar demand through the
SolarNova scheme led by the Economic Development Board (EDB).
In the private sector, various companies have taken the green route. Apple
made waves in late-2015 when it became the first company here to be entirely
powered by renewable energy in a landmark deal with local solar developer
Sunseap.
More recently, Keppel Land said its corporate headquarters in Bugis Junction
Towers are now fully powered by renewable energy generated offsite.
The increased carbon-consciousness across both the public and private
sectors has accelerated the adoption of solar power on the island, with
installed solar capacity nearly quadrupling over the last three years to
reach 129.8 MWp at the end of the first quarter this year.
Meanwhile, tests to explore the viability of placing solar panels on
reservoirs are underway, with 10 different photovoltaic systems currently
being tested out in the western Tengeh Reservoir. If viable, this promises
to raise the amount of solar energy that can be generated in land-scarce
Singapore.
But a rise in solar adoption also brings along increased stress on the grid
and other operational challenges, as solar power is intermittent in nature;
power generation firms will have to ensure there is sufficient baseload
power even with higher use of solar energy. Among the issues that will have
to be worked out is how the increased costs in operating the grid and
ensuring sufficient baseload power can be fairly distributed among the
various parties involved.
To be sure, renewable energy such as solar is only one of a few technologies
changing the face of the energy sector worldwide; others include energy
storage and blockchain.
To this end, the EMA's recent proposal for a regulatory sandbox to test new
energy technologies and business models is surely a good move.
As the local electricity sector becomes more sophisticated, new products
will be introduced to the market. Already, electricity retailer iSwitch has
brought in carbon credits to give consumers another route to go green. Other
retailers have also indicated interest to try new products with the
regulatory sandbox.
Having more choices is almost always beneficial for the consumer - as long
as these are sustainable. For now, it is still unclear if the local market
is large enough for the many retailers to survive.
Therefore, even as the energy buffet table fills up, the EMA will certainly
have to keep a watchful eye. It might take quite a while yet before the
shape of Singapore's future electricity market fully emerges.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.businesstimes.com.sg/energy-commodities/singapore-electricity-sec
tor-to-see-shake-up-with-full-liberalisation?xtor=EREC-16-1[BT_Newsletter_1]
-20170731-[Singapore+electricity+sector+to+see+shake-up+with+full+liberalisa
tion]&xts=538380
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
THE future of Singapore's electricity sector is starting to take shape as
the country approaches the last leg of a long journey in the liberalisation
of the market.
With 25 electricity retailers slugging it out for a pie of the market that
will be fully liberalised next year, the range of new services they will
offer - by tapping various new technologies and new business models - will
no doubt bring immense benefits to end-consumers.
To keep up, however, the Energy Market Authority (EMA) will have to redraw
some of the current regulations. And given how incumbent power generation
companies have warned that the current market situation is unsustainable and
posing severe financial strain for them, it will also have to keep a
watchful eye on the market.
The full liberalisation of the market has been a long time coming. Since
2001, steadily more consumers have been handed the freedom to switch from
buying electricity at the regulated tariff from SP Services to buying from
an electricity retailer which offers packages with different price plans.
At the moment, only consumers using above two megawatt-hour (MWh) - mainly
industrial and commercial consumers - can do so; another 1.3 million
consumers, mainly households, will enjoy this flexibility by the second half
of 2018.
Ahead of this, the number of electricity retailers has surged, from seven in
2013 to the current 25 - a number that continues to grow.
It has also changed the way incumbents operate here.
For instance, Sembcorp Industries, which is in the midst of a strategic
review after new CEO Neil McGregor arrived at the group, has signalled its
intent to move into the solar space in Singapore through a recent S$3.3
million acquisition of two operating rooftop solar facilities from REC
Solar.
The "small but significant" acquisition will complement the group's
electricity generation and retail capabilities in the country, said Mr
McGregor in a statement.
The Singapore government, while firm on the stance that it will not
subsidise solar power, has also done its part to spur solar adoption.
JTC last month gave Sun Electric the rights to install solar panels on the
rooftops of 27 JTC buildings, and to export the solar energy into the grid
which can also be sold to users in other buildings. This marked a new
business model as previously, power generated under solar leasing models
primarily served users of the building itself before excess energy is
brought into the grid.
Government agencies have also aggregated their solar demand through the
SolarNova scheme led by the Economic Development Board (EDB).
In the private sector, various companies have taken the green route. Apple
made waves in late-2015 when it became the first company here to be entirely
powered by renewable energy in a landmark deal with local solar developer
Sunseap.
More recently, Keppel Land said its corporate headquarters in Bugis Junction
Towers are now fully powered by renewable energy generated offsite.
The increased carbon-consciousness across both the public and private
sectors has accelerated the adoption of solar power on the island, with
installed solar capacity nearly quadrupling over the last three years to
reach 129.8 MWp at the end of the first quarter this year.
Meanwhile, tests to explore the viability of placing solar panels on
reservoirs are underway, with 10 different photovoltaic systems currently
being tested out in the western Tengeh Reservoir. If viable, this promises
to raise the amount of solar energy that can be generated in land-scarce
Singapore.
But a rise in solar adoption also brings along increased stress on the grid
and other operational challenges, as solar power is intermittent in nature;
power generation firms will have to ensure there is sufficient baseload
power even with higher use of solar energy. Among the issues that will have
to be worked out is how the increased costs in operating the grid and
ensuring sufficient baseload power can be fairly distributed among the
various parties involved.
To be sure, renewable energy such as solar is only one of a few technologies
changing the face of the energy sector worldwide; others include energy
storage and blockchain.
To this end, the EMA's recent proposal for a regulatory sandbox to test new
energy technologies and business models is surely a good move.
As the local electricity sector becomes more sophisticated, new products
will be introduced to the market. Already, electricity retailer iSwitch has
brought in carbon credits to give consumers another route to go green. Other
retailers have also indicated interest to try new products with the
regulatory sandbox.
Having more choices is almost always beneficial for the consumer - as long
as these are sustainable. For now, it is still unclear if the local market
is large enough for the many retailers to survive.
Therefore, even as the energy buffet table fills up, the EMA will certainly
have to keep a watchful eye. It might take quite a while yet before the
shape of Singapore's future electricity market fully emerges.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.businesstimes.com.sg/energy-commodities/singapore-electricity-sec
tor-to-see-shake-up-with-full-liberalisation?xtor=EREC-16-1[BT_Newsletter_1]
-20170731-[Singapore+electricity+sector+to+see+shake-up+with+full+liberalisa
tion]&xts=538380
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Indonesia: PLN to enter internet business amid slowing sales
Indonesia: PLN to enter internet business amid slowing sales
State electricity firm PLN plans to penetrate into the internet business by
installing "smart meter boxes" in the houses of its 65.9 million customers
nationwide amid declining growth in its electricity sales.
PLN has found it difficult to monitor the quality of its electricity supply
amid mounting reports from customers that have experienced sporadic outages
and under-voltage supply. Therefore, it plans to replace all conventional
electricity meter boxes currently installed in the houses of its customers
with new automated ones by 2019.
The new boxes will be able to collect data, including the volume and voltage
of the electricity used by each customer, so that PLN can monitor the
quality of its electricity supply on a daily basis.
"After the new meter boxes are installed, we plan to offer new internet
services using our electricity networks to 40-60 percent of our total
customers. We can also be an internet provider through the presence of these
'smart meter boxes'," PLN marketing division head Benny Marbun said.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.thejakartapost.com/news/2017/07/30/pln-to-enter-internet-business
-amid-slowing-sales.html
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
State electricity firm PLN plans to penetrate into the internet business by
installing "smart meter boxes" in the houses of its 65.9 million customers
nationwide amid declining growth in its electricity sales.
PLN has found it difficult to monitor the quality of its electricity supply
amid mounting reports from customers that have experienced sporadic outages
and under-voltage supply. Therefore, it plans to replace all conventional
electricity meter boxes currently installed in the houses of its customers
with new automated ones by 2019.
The new boxes will be able to collect data, including the volume and voltage
of the electricity used by each customer, so that PLN can monitor the
quality of its electricity supply on a daily basis.
"After the new meter boxes are installed, we plan to offer new internet
services using our electricity networks to 40-60 percent of our total
customers. We can also be an internet provider through the presence of these
'smart meter boxes'," PLN marketing division head Benny Marbun said.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.thejakartapost.com/news/2017/07/30/pln-to-enter-internet-business
-amid-slowing-sales.html
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Philippines: Power co-ops seek tax exemption
Philippines: Power co-ops seek tax exemption
State-managed electric cooperatives across the nation, all 121 of them,
should be spared from a comprehensive tax reform program that the Duterte
administration is pushing vigorously, according to the National
Electrification Administration (NEA).
NEA Administrator Edgardo Masongsong said the agency was pursuing support
from the Department of Justice on NEA's position that tax privileges
accorded to power cooperatives registered with the Cooperative Development
Authority (CDA) be applied also to the 121 utilities.
According to the CDA, the Cooperative Code grants cooperatives tax exemption
"to enable them to develop into viable and responsive economic enterprises
and thereby fulfill their purpose of serving the need of the members."
"We are looking forward to have the favorable opinion of the DOJ that the
electric cooperatives registered with NEA be tax-exempt as well," Masongsong
said.
He said the NEA was engaged in discussions along this line with energy
committees in both the Senate and the House of Representatives as well as
the departments of Energy and of Finance.
Citing Republic Act No. 10531, which amends the NEA Charter to strengthen
the agency, Masongsong said all non-stock and non-profit rural energy
distribution utilities were entitled to preferential rights granted to
cooperatives under the Local Government Code of 1991 and other related laws.
He said that RA 10531 allowed NEA to prioritize the grant of incentives to
electric cooperatives that were managed effectively and efficiently and
which complied consistently with its mandates and directives.
Last June, Finance Undersecretary Karl Kendrick T. Chua said cooperatives
were among interest groups that have been very vocal in seeking exemptions
from tax reform.
"For those who want exemptions, I tell them that there is no free lunch,"
Chua said. "If (one party is given) an exemption, somebody else would have
to (take up that burden). It cannot be that everything is free from heaven."
"In the DOF, we are not here to defend a sector or promote (a particular)
interest," he said. "We're here to raise money for this entire country's
needs and to look after this country's future."
Even then, Chua said the DOF was open to discussing interest groups'
concerns and considering their proposals.
In terms of efforts toward full, nationwide electrification, the NEA's
latest goal is to achieve this by 2022.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://business.inquirer.net/234103/power-co-ops-seek-tax-exemption
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
State-managed electric cooperatives across the nation, all 121 of them,
should be spared from a comprehensive tax reform program that the Duterte
administration is pushing vigorously, according to the National
Electrification Administration (NEA).
NEA Administrator Edgardo Masongsong said the agency was pursuing support
from the Department of Justice on NEA's position that tax privileges
accorded to power cooperatives registered with the Cooperative Development
Authority (CDA) be applied also to the 121 utilities.
According to the CDA, the Cooperative Code grants cooperatives tax exemption
"to enable them to develop into viable and responsive economic enterprises
and thereby fulfill their purpose of serving the need of the members."
"We are looking forward to have the favorable opinion of the DOJ that the
electric cooperatives registered with NEA be tax-exempt as well," Masongsong
said.
He said the NEA was engaged in discussions along this line with energy
committees in both the Senate and the House of Representatives as well as
the departments of Energy and of Finance.
Citing Republic Act No. 10531, which amends the NEA Charter to strengthen
the agency, Masongsong said all non-stock and non-profit rural energy
distribution utilities were entitled to preferential rights granted to
cooperatives under the Local Government Code of 1991 and other related laws.
He said that RA 10531 allowed NEA to prioritize the grant of incentives to
electric cooperatives that were managed effectively and efficiently and
which complied consistently with its mandates and directives.
Last June, Finance Undersecretary Karl Kendrick T. Chua said cooperatives
were among interest groups that have been very vocal in seeking exemptions
from tax reform.
"For those who want exemptions, I tell them that there is no free lunch,"
Chua said. "If (one party is given) an exemption, somebody else would have
to (take up that burden). It cannot be that everything is free from heaven."
"In the DOF, we are not here to defend a sector or promote (a particular)
interest," he said. "We're here to raise money for this entire country's
needs and to look after this country's future."
Even then, Chua said the DOF was open to discussing interest groups'
concerns and considering their proposals.
In terms of efforts toward full, nationwide electrification, the NEA's
latest goal is to achieve this by 2022.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://business.inquirer.net/234103/power-co-ops-seek-tax-exemption
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Sunday, July 30, 2017
Legal framework, roadmap needed for Vietnam’s wind power
Legal framework, roadmap needed for Vietnam's wind power
Tobias Cossen, head of GIZ's project on supporting the up-scaling of wind
power said that Việt Nam has great potential to develop wind power as the
country possesses around 3,000 km of coastline with excellent wind
conditions.
The Vietnamese government has approved several programmes to encourage the
development of renewable energy in the country. As many as five wind farms
with total capacity of almost 200MW are currently in operation. More than 50
other projects are in the construction and planning phase.
However, a number of regulatory and market barriers as well as the lack of
capacity have been identified as obstacles for investors in wind projects,
according to Cossen.
Specifically, the major challenge for wind power investment is the Feed in
Tariff (Fit) of 7.8 US cent/kWh, which is too low for investors to overcome
the perceived risks for wind power development.
"We all understand that the overall wind power market development and
whether the government target for wind energy by 2020 could be reached or
not highly depend on the level of FiT. Only with adjustments to a new FiT
can the government target of 800MW by 2020 be reached," he said.
In addition, the Standardized Power Purchase Agreement (SPPA) for wind power
projects is not seen as bankable to international financing institutions due
to unclear terms and definitions regarding the force majeure, curtailment,
and punishment of delayed payment. With difficulties in getting access to
international financing institutions, the project developers and investors
face a lack of capital from local commercial banks for huge investment
projects such as wind farms.
Finally, the development of wind power projects in Vietnam and related
approval process has remained complicated and vague.
Tobias Cossen said that even though there were general guidelines about
project development, they have been applied differently in different
provinces. This makes the application process time-consuming, unclear and
not as transparent as it should be.
Moreover, a lack of high quality data and regulations as well as information
on wind power has been a big challenge for new market development. This has
led to a longer processing time for project development, appraisal and
permitting, he said.
Pham Phu Uynh, deputy director of the Institute for Urban Environment and
Ecology at Nguyen Trai University and one of Việt Nam's leading scientists
on wind power said that the country must have a roadmap with modern
technology to make wind power feasible.
One of the biggest challenges, he said, was the high cost of wind energy,
which was caused by the high cost of manufacturing and importing wind
turbines.
Uynh said the capacities of these turbines have been exaggerated compared to
their actual manufacturing capacities. The turbine capacity does not only
depend on the length of the turbine blades but also on other conditions,
particularly wind speed.
For example, a five-wing wind turbine installed on a high building in Ha
Noi, according to its manufacturer, can generate up to 100 Watts at a wind
speed of 13m per second. But in fact, the wind speed and the turbine
capacity was measured to be only 5.4 Watts.
Furthermore, there are already many windmills in operation in Vietnam. The
owners often imported technology from foreign firms. However, the imported
cost is rather high, making the final electricity cost expensive.
"This is the result of Việt Nam depending heavily on foreign technology and
not paying attention to developing the country's own and training human
resources in this field," he said.
Vietnam's climate is different from that of European countries, with more
tropical typhoons and unstable wind speeds in coastal areas. This was a key
reason that imported turbines often encountered trouble in their operation.
This was something Vietnamese importers should consider carefully.
According to experts, some measures should be taken to improve the
situation.
First of all, Vietnam needed to build a suitable and effective support
mechanism to trigger private investment. For example, the FiT should be
adjusted adequately to attract investors – 10.4 US cent/kWh for onshore wind
energy would make a big improvement.
Secondly, a supportive and lean legal-administrative framework can reduce
administrative risks and related costs for investors and financing
institutions. Vagueness in the formulation of procedures or licenses, such
as the permit for inclusion in the power development plan, investment
licence (with firm figures on land use and MW included), SPPA and generation
licence of 10 years, will jeopardise banks' ability to finance projects and
thus the realisation of the projects in general.
The country need a good strategy on energy development, particularly the
utilisation of traditional energy sources like hydro-power and thermo-power,
in addition to the development of new sources like solar energy, wind energy
and others. It is high time for Vietnam to focus more on the use of
renewable energy, particularly wind energy, with advanced technology and its
own human resources, they have said.
Vietnam has great potential to develop wind power. The highest potential
areas are on the south central coast, central highlands and the Mekong Delta
region with about 24GW. To make a comparison, Southeast Asia's biggest
hydro-power plant, Sơn La hydro power plant, has an installed capacity of
2.4GW, according to the World Bank wind atlas in 2011.
Currently five wind farms with total capacity of almost 200MW are in
operation, among them the first 4 are grid-connected. REVN, the first wind
farm, with capacity of 30MW, is located in Binh Thuan Province. Côog Ly wind
farm, producing 99.2MW, is a nearshore project in Bac Lieu Province. Phu Lac
wind farm of 24MW also in Binh Thuan Province, Huong Linh of 30MW in Quang
Tri Province, and a diesel-wind hybrid project of 6MW on Phu Quy island in
Binh Thuan Province.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://english.vietnamnet.vn/fms/business/182868/legal-framework--roadmap-ne
eded-for-vietnam-s-wind-power.html
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Tobias Cossen, head of GIZ's project on supporting the up-scaling of wind
power said that Việt Nam has great potential to develop wind power as the
country possesses around 3,000 km of coastline with excellent wind
conditions.
The Vietnamese government has approved several programmes to encourage the
development of renewable energy in the country. As many as five wind farms
with total capacity of almost 200MW are currently in operation. More than 50
other projects are in the construction and planning phase.
However, a number of regulatory and market barriers as well as the lack of
capacity have been identified as obstacles for investors in wind projects,
according to Cossen.
Specifically, the major challenge for wind power investment is the Feed in
Tariff (Fit) of 7.8 US cent/kWh, which is too low for investors to overcome
the perceived risks for wind power development.
"We all understand that the overall wind power market development and
whether the government target for wind energy by 2020 could be reached or
not highly depend on the level of FiT. Only with adjustments to a new FiT
can the government target of 800MW by 2020 be reached," he said.
In addition, the Standardized Power Purchase Agreement (SPPA) for wind power
projects is not seen as bankable to international financing institutions due
to unclear terms and definitions regarding the force majeure, curtailment,
and punishment of delayed payment. With difficulties in getting access to
international financing institutions, the project developers and investors
face a lack of capital from local commercial banks for huge investment
projects such as wind farms.
Finally, the development of wind power projects in Vietnam and related
approval process has remained complicated and vague.
Tobias Cossen said that even though there were general guidelines about
project development, they have been applied differently in different
provinces. This makes the application process time-consuming, unclear and
not as transparent as it should be.
Moreover, a lack of high quality data and regulations as well as information
on wind power has been a big challenge for new market development. This has
led to a longer processing time for project development, appraisal and
permitting, he said.
Pham Phu Uynh, deputy director of the Institute for Urban Environment and
Ecology at Nguyen Trai University and one of Việt Nam's leading scientists
on wind power said that the country must have a roadmap with modern
technology to make wind power feasible.
One of the biggest challenges, he said, was the high cost of wind energy,
which was caused by the high cost of manufacturing and importing wind
turbines.
Uynh said the capacities of these turbines have been exaggerated compared to
their actual manufacturing capacities. The turbine capacity does not only
depend on the length of the turbine blades but also on other conditions,
particularly wind speed.
For example, a five-wing wind turbine installed on a high building in Ha
Noi, according to its manufacturer, can generate up to 100 Watts at a wind
speed of 13m per second. But in fact, the wind speed and the turbine
capacity was measured to be only 5.4 Watts.
Furthermore, there are already many windmills in operation in Vietnam. The
owners often imported technology from foreign firms. However, the imported
cost is rather high, making the final electricity cost expensive.
"This is the result of Việt Nam depending heavily on foreign technology and
not paying attention to developing the country's own and training human
resources in this field," he said.
Vietnam's climate is different from that of European countries, with more
tropical typhoons and unstable wind speeds in coastal areas. This was a key
reason that imported turbines often encountered trouble in their operation.
This was something Vietnamese importers should consider carefully.
According to experts, some measures should be taken to improve the
situation.
First of all, Vietnam needed to build a suitable and effective support
mechanism to trigger private investment. For example, the FiT should be
adjusted adequately to attract investors – 10.4 US cent/kWh for onshore wind
energy would make a big improvement.
Secondly, a supportive and lean legal-administrative framework can reduce
administrative risks and related costs for investors and financing
institutions. Vagueness in the formulation of procedures or licenses, such
as the permit for inclusion in the power development plan, investment
licence (with firm figures on land use and MW included), SPPA and generation
licence of 10 years, will jeopardise banks' ability to finance projects and
thus the realisation of the projects in general.
The country need a good strategy on energy development, particularly the
utilisation of traditional energy sources like hydro-power and thermo-power,
in addition to the development of new sources like solar energy, wind energy
and others. It is high time for Vietnam to focus more on the use of
renewable energy, particularly wind energy, with advanced technology and its
own human resources, they have said.
Vietnam has great potential to develop wind power. The highest potential
areas are on the south central coast, central highlands and the Mekong Delta
region with about 24GW. To make a comparison, Southeast Asia's biggest
hydro-power plant, Sơn La hydro power plant, has an installed capacity of
2.4GW, according to the World Bank wind atlas in 2011.
Currently five wind farms with total capacity of almost 200MW are in
operation, among them the first 4 are grid-connected. REVN, the first wind
farm, with capacity of 30MW, is located in Binh Thuan Province. Côog Ly wind
farm, producing 99.2MW, is a nearshore project in Bac Lieu Province. Phu Lac
wind farm of 24MW also in Binh Thuan Province, Huong Linh of 30MW in Quang
Tri Province, and a diesel-wind hybrid project of 6MW on Phu Quy island in
Binh Thuan Province.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://english.vietnamnet.vn/fms/business/182868/legal-framework--roadmap-ne
eded-for-vietnam-s-wind-power.html
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Kayin state struggles expose Myanmar's energy dilemma
Kayin state struggles expose Myanmar's energy dilemma
Local and national opposition to a proposed coal plant in Kayin state,
eastern Myanmar, has exposed Myanmar's energy security dilemma. Activists
argue the project will have a range of negative impacts, encouraging land
grabbing; polluting air and water supplies; ruining local livelihoods; and
exacerbating already poor public health across the region.
Approximately one-third of Myanmar's citizens have electricity access -
among the lowest rates in Asia. Low energy security has particularly
hampered economic growth and the livelihoods of citizens in rural areas,
where electricity is most scarce. Nevertheless, focusing on coal power
creates unnecessary risks and ignores viable renewable alternatives for
rural communities.
The government's plans
Under its National Electrification Project (NEP), the government plans to
connect 100% of homes to the national grid by 2030. This ambitious 15-year
project involves expanding the grid to a further 40,000 villages, drawing on
investments of US$5.8bn. A central aspect of these plans is to increase
coal's total contribution to the grid from 3% to 30%. This represents a huge
success for coal lobbyists, and reflects the industry's revival across South
and Southeast Asia.
Major financial institutions have thrown their weight behind Myanmar,
including the World Bank, the Asian Development Bank (ADB) and the Japan
International Cooperation Agency (JICA). The World Bank has pledged US$1bn
and provided a further US$400m in loans to expand the current grid, with the
remainder coming from a variety of initiatives and foreign-funded projects.
For the government, coal provides an efficient and cheap power source and
will contribute greatly to Myanmar's energy security. Data shows the Kayin
plant alone will increase Myanmar's total electricity production by 25%.
Myanmar's grid is currently over-reliant on hydropower, causing the country
to suffer from regular blackouts during the dry season. Opposition to
hydropower has also grown due to the controversy surrounding the
Chinese-backed Myitsone Dam, causing delays to most of Myanmar's other
planned hydropower projects.
NLD spokesperson Win Htein noted the potential value of coal in locations
where hydropower no longer seems viable. The government plans to proceed
with the Kayin state plant, one of eleven plants commissioned under the NEP.
It will be run by the Thailand-based Toyo-Thai Corporation Public Company
Limited (TTCL).
The risks of coal
Despite coal's reputation for contributing to global warming, TTCL intends
to employ 'high energy, low emissions' (HELE) technology to mitigate the
adverse environmental effects resulting from coal burning. As previously
reported, this 'clean coal' technology has attracted interest from a host of
countries, including Australia, India and China.
HELE technology is still under-researched. For instance, the best methods of
dealing with the pollutants that are not filtered out (nitrogen oxide,
sulphur dioxide, and other particulates) are still unclear. This is
important considering Myanmar's high vulnerability to climate change's
negative impacts. Clean coal is also more costly, although costs may
decrease with further research and development.
'Clean' or not, coal extraction remains controversial. Mining has a long
history of opposition in Myanmar. The Ban Chaung coal mine in Kayin state
has faced resistance for many of the same reasons as the planned power
station, namely environmental and health problems, land seizures and other
human rights violations (concerning which Myanmar has a long and sorry
history). Villagers are well-educated on the costs and benefits of energy
projects, and adept at generating community opposition - the chief element
behind stalled projects.
The majority of Myanmar's coal is low quality; hence the government will
need to import expensive bituminous coal for these new plants. As Naing and
Lee observe, this 'would mean an outflow of dollars from a country with tiny
reserves of hard currency'. To handle the vast quantities of coal imported
annually, experts anticipate the need for a new sea port, creating further
economic and logistical strains.
By proceeding with these plans, the NLD risks jeopardising the support it
has gained in Kayin state. Moreover, resource politics is deeply entwined
with the tensions between different ethnic militias. Although a ceasefire
has been observed since 2011, peripheral regions - like Kayin and Mon -
remain volatile and vulnerable to clashes, particularly over land and
resources. Historically, there has also been collusion between members of
these armed groups and military officials.
The case for renewables
NGOs believe there are opportunities for greener solutions. Renewables are
abundant, cheap, quick to install and well-positioned for off-grid needs.
Solar, wind, biogas and small-scale hydro-technologies have positively
impacted rural communities. These markets have received much attention in
Thailand, and Myanmar should take heed of its neighbour.
Under the NEP, Myanmar has made some commitments to renewables. The
cumulative target by the end of 2021 is to install solar panel units in
456,500 homes and 'mini-grids' (which draw on any combination of the
aforementioned technologies) in 35,500 households. However, the NEP favours
coal, gas and big hydro, and is not forward-thinking enough regarding
renewables and the growing market for household-scale solutions. Whereas
Thailand's target contribution from renewables is 40%, Myanmar's is just 5%.
One of the contributing factors is the limited role of Myanmar's private
sector. Responsibility for off-grid rural electrification falls under the
agriculture ministry - and not the energy ministry - which has hampered
private-sector participation in renewable energy projects and prevented a
unified policy framework concerning off-grid rural electrification. As a
solution, more power should be devolved to each state's own energy ministry.
As one article notes, there are exceptions: the NGO 'Pact' is working with
businesses to provide electricity for 1 million villagers by 2021. Pact will
offer highly-subsidised solar panels to villagers, and - given sufficient
funding - hopes to develop mini-grids. The NEP report does acknowledge that
'further reforms, institutional development and increasing private sector
participation' are needed to develop a commercially viable renewable energy
market. The NEP report also acknowledges a rural market for grid extension
even while it highlights off-grid renewables as being more unreliable due to
their reliance dependent on weather and climate, and notes that relatively
speaking 'off-grid customers tend to pay significantly more for lower level
of services than grid-connected users.'
As Myanmar continues to liberalise after years of underinvestment and
underdevelopment, energy security will represent its Achilles' heel.
Clearly, the government believes renewables will be unable to meet the
country's growing energy needs. Nevertheless, embracing 'clean coal' risks
magnifying Myanmar's myriad environmental, social and political problems.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://globalriskinsights.com/2017/07/myanmar-energy-dilemma/
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Local and national opposition to a proposed coal plant in Kayin state,
eastern Myanmar, has exposed Myanmar's energy security dilemma. Activists
argue the project will have a range of negative impacts, encouraging land
grabbing; polluting air and water supplies; ruining local livelihoods; and
exacerbating already poor public health across the region.
Approximately one-third of Myanmar's citizens have electricity access -
among the lowest rates in Asia. Low energy security has particularly
hampered economic growth and the livelihoods of citizens in rural areas,
where electricity is most scarce. Nevertheless, focusing on coal power
creates unnecessary risks and ignores viable renewable alternatives for
rural communities.
The government's plans
Under its National Electrification Project (NEP), the government plans to
connect 100% of homes to the national grid by 2030. This ambitious 15-year
project involves expanding the grid to a further 40,000 villages, drawing on
investments of US$5.8bn. A central aspect of these plans is to increase
coal's total contribution to the grid from 3% to 30%. This represents a huge
success for coal lobbyists, and reflects the industry's revival across South
and Southeast Asia.
Major financial institutions have thrown their weight behind Myanmar,
including the World Bank, the Asian Development Bank (ADB) and the Japan
International Cooperation Agency (JICA). The World Bank has pledged US$1bn
and provided a further US$400m in loans to expand the current grid, with the
remainder coming from a variety of initiatives and foreign-funded projects.
For the government, coal provides an efficient and cheap power source and
will contribute greatly to Myanmar's energy security. Data shows the Kayin
plant alone will increase Myanmar's total electricity production by 25%.
Myanmar's grid is currently over-reliant on hydropower, causing the country
to suffer from regular blackouts during the dry season. Opposition to
hydropower has also grown due to the controversy surrounding the
Chinese-backed Myitsone Dam, causing delays to most of Myanmar's other
planned hydropower projects.
NLD spokesperson Win Htein noted the potential value of coal in locations
where hydropower no longer seems viable. The government plans to proceed
with the Kayin state plant, one of eleven plants commissioned under the NEP.
It will be run by the Thailand-based Toyo-Thai Corporation Public Company
Limited (TTCL).
The risks of coal
Despite coal's reputation for contributing to global warming, TTCL intends
to employ 'high energy, low emissions' (HELE) technology to mitigate the
adverse environmental effects resulting from coal burning. As previously
reported, this 'clean coal' technology has attracted interest from a host of
countries, including Australia, India and China.
HELE technology is still under-researched. For instance, the best methods of
dealing with the pollutants that are not filtered out (nitrogen oxide,
sulphur dioxide, and other particulates) are still unclear. This is
important considering Myanmar's high vulnerability to climate change's
negative impacts. Clean coal is also more costly, although costs may
decrease with further research and development.
'Clean' or not, coal extraction remains controversial. Mining has a long
history of opposition in Myanmar. The Ban Chaung coal mine in Kayin state
has faced resistance for many of the same reasons as the planned power
station, namely environmental and health problems, land seizures and other
human rights violations (concerning which Myanmar has a long and sorry
history). Villagers are well-educated on the costs and benefits of energy
projects, and adept at generating community opposition - the chief element
behind stalled projects.
The majority of Myanmar's coal is low quality; hence the government will
need to import expensive bituminous coal for these new plants. As Naing and
Lee observe, this 'would mean an outflow of dollars from a country with tiny
reserves of hard currency'. To handle the vast quantities of coal imported
annually, experts anticipate the need for a new sea port, creating further
economic and logistical strains.
By proceeding with these plans, the NLD risks jeopardising the support it
has gained in Kayin state. Moreover, resource politics is deeply entwined
with the tensions between different ethnic militias. Although a ceasefire
has been observed since 2011, peripheral regions - like Kayin and Mon -
remain volatile and vulnerable to clashes, particularly over land and
resources. Historically, there has also been collusion between members of
these armed groups and military officials.
The case for renewables
NGOs believe there are opportunities for greener solutions. Renewables are
abundant, cheap, quick to install and well-positioned for off-grid needs.
Solar, wind, biogas and small-scale hydro-technologies have positively
impacted rural communities. These markets have received much attention in
Thailand, and Myanmar should take heed of its neighbour.
Under the NEP, Myanmar has made some commitments to renewables. The
cumulative target by the end of 2021 is to install solar panel units in
456,500 homes and 'mini-grids' (which draw on any combination of the
aforementioned technologies) in 35,500 households. However, the NEP favours
coal, gas and big hydro, and is not forward-thinking enough regarding
renewables and the growing market for household-scale solutions. Whereas
Thailand's target contribution from renewables is 40%, Myanmar's is just 5%.
One of the contributing factors is the limited role of Myanmar's private
sector. Responsibility for off-grid rural electrification falls under the
agriculture ministry - and not the energy ministry - which has hampered
private-sector participation in renewable energy projects and prevented a
unified policy framework concerning off-grid rural electrification. As a
solution, more power should be devolved to each state's own energy ministry.
As one article notes, there are exceptions: the NGO 'Pact' is working with
businesses to provide electricity for 1 million villagers by 2021. Pact will
offer highly-subsidised solar panels to villagers, and - given sufficient
funding - hopes to develop mini-grids. The NEP report does acknowledge that
'further reforms, institutional development and increasing private sector
participation' are needed to develop a commercially viable renewable energy
market. The NEP report also acknowledges a rural market for grid extension
even while it highlights off-grid renewables as being more unreliable due to
their reliance dependent on weather and climate, and notes that relatively
speaking 'off-grid customers tend to pay significantly more for lower level
of services than grid-connected users.'
As Myanmar continues to liberalise after years of underinvestment and
underdevelopment, energy security will represent its Achilles' heel.
Clearly, the government believes renewables will be unable to meet the
country's growing energy needs. Nevertheless, embracing 'clean coal' risks
magnifying Myanmar's myriad environmental, social and political problems.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://globalriskinsights.com/2017/07/myanmar-energy-dilemma/
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
China energy investors show interest in Philippine market
China energy investors show interest in Philippine market
The Philippines' Department of Trade and Industry (DTI) announced that a
China-based business group has manifested interest in investing in the
energy sector in the Philippines.
The Wenzhou Chamber of Commerce is a group of investors in the Fengxian
District in Shanghai, China. Most of them are operating enterprises in
electric wires, cables, power transformers, transmissions, intelligence
equipment and electric distribution.
The Philippines, especially the Southern region, has been experiencing
sporadic power interruption lasting for hours. The series of interruption
kept the power in the Southern Philippines unstable despite the high cost of
electricity compared with other ASEAN neighbours.
However, DTI further said that the Chinese investors have initially
manifested to inquire on how to set up factories in the Philippines given
the strategic location of the country, cheap labour cost and promising
economy.
Trade Undersecretary Ceferino Rodolfo also said that with the influx of many
Asian investors showing interest in the Philippines, he is confident that
the country will continue to outperform its neighbours in Southeast Asia as
a result of its sound economic fundamentals.
The recent influx of Chinese investments to the Philippines kept growing as
a result of the flourishing trade relations between the two countries.
Moreover, Philippine President Rodrigo Duterte also adopted a foreign policy
to establish closer relations with Asian neighbours.
Aside from the heavy investments, the Philippine embassy to China also
announced that the country is expecting one million tourists influx in the
next few years that will boost the country's rural economy.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.ibtimes.sg/china-energy-investors-show-interest-philippine-market
-13226
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
The Philippines' Department of Trade and Industry (DTI) announced that a
China-based business group has manifested interest in investing in the
energy sector in the Philippines.
The Wenzhou Chamber of Commerce is a group of investors in the Fengxian
District in Shanghai, China. Most of them are operating enterprises in
electric wires, cables, power transformers, transmissions, intelligence
equipment and electric distribution.
The Philippines, especially the Southern region, has been experiencing
sporadic power interruption lasting for hours. The series of interruption
kept the power in the Southern Philippines unstable despite the high cost of
electricity compared with other ASEAN neighbours.
However, DTI further said that the Chinese investors have initially
manifested to inquire on how to set up factories in the Philippines given
the strategic location of the country, cheap labour cost and promising
economy.
Trade Undersecretary Ceferino Rodolfo also said that with the influx of many
Asian investors showing interest in the Philippines, he is confident that
the country will continue to outperform its neighbours in Southeast Asia as
a result of its sound economic fundamentals.
The recent influx of Chinese investments to the Philippines kept growing as
a result of the flourishing trade relations between the two countries.
Moreover, Philippine President Rodrigo Duterte also adopted a foreign policy
to establish closer relations with Asian neighbours.
Aside from the heavy investments, the Philippine embassy to China also
announced that the country is expecting one million tourists influx in the
next few years that will boost the country's rural economy.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.ibtimes.sg/china-energy-investors-show-interest-philippine-market
-13226
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Vietnam: Major energy firms woo investors
Vietnam: Major energy firms woo investors
Representatives of the PetroVietnam Securities Incorporated (PSI) and the Vinacomin Power Holding Corporation told an investors' conference on July 26 that they were encouraged by investors' interest shown in purchasing Vinacomin shares.
Ngo Tri Thinh, general director of Vinacomin Power Holding Corporation - a subsidiary of the Vietnam National Coal-Mineral Industries Holding Corporation Ltd (Vinacomin), told more than 100 potential investors that his company is well aware of the pressure and competitive nature of the energy sector, and it strives to meet investor expectations with more effective management and operation systems.
The Vinacomin Power Holding Corporation became equitised in January 2016 with 6.8 trillion VND (302.4 million USD) in charter capital, under the stock code DTK on the Hanoi Stock Exchange's (HNX) Unlisted Public Company Market (UPCoM).
The company now has 680 million common stocks trading on the UPCoM at 14,000 VND (0.6 USD) per share, same as its preferential price in 2016. According to its 2016 financial report, the company finished with 354 billion VND (15.74 million USD) in post-tax income, down by 29.36 percent from its 2015 result.
The Vinacomin Power Holding Corporation is operating seven thermo-electric plants across the country, generating more than nine billion kilowatts per year. The group is considered the third largest power supplier in the growing Vietnamese power market, following Electricity of Vietnam and the PetroVietnam.
The need for thermo-electricity in the country will reach 245 billion kilowatts in 2020 and a staggering 559 billion kilowatt in 2030.
Since the company's plants are situated in close proximity to coal mines, it has managed to cut down on transportation costs and facilitate the coal sector's value chain.
PSI representative explained at the conference that the aforementioned loss could be attributed to the large capital flow into Vinacomin's power projects. At present, the company's plants have yet to generate enough revenue to break even, so it will take a few more years before the amount of outstanding debts decline and income goes up.
However, PSI also warned that Vinacomin's DTK stock has a low liquidity rate, and could pose risks for investors. As of now, up to 99.68 percent of the company's shares is owned by the State-owned enterprise Vinacomin, with low value of free float shares.
Vinacomin's Deputy General Director Nguyen Van Bien said at the conference that in accordance with the Prime Minister's orientation for the 2016-20 period, Vinacomin plans to restructure all its subsidiaries. In particular, the group will divest from its Vinacomin Power Holding Corporation in two phases. The first phase will see the State ownership reducing from 99.68 percent to 65 percent and the second phase shifting from 65 percent to 51 percent by the end of 2018.
The group will also divest down to 36 percent from the Vinacomin Housing and Infrastructure Company Limited, 51 percent at the Vinacomin-Việt Bắc Geology Joint Stock Company, and 65 percent at the Vinacomin Minerals Holding Corporation.
The group hopes to mobilise as many investments at home and abroad as possible, and will give priority to potential investors with strong financial ability, experience in the power sector or those willing to commit to a long-term deal with the company, Bien said.
The group plans to announce further plans in the third quarter of 2017 to help hesitant investors make their decisions by the end of the year.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article: http://english.vietnamnet.vn/fms/business/182832/major-energy-firms-woo-investors.html
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Representatives of the PetroVietnam Securities Incorporated (PSI) and the Vinacomin Power Holding Corporation told an investors' conference on July 26 that they were encouraged by investors' interest shown in purchasing Vinacomin shares.
Ngo Tri Thinh, general director of Vinacomin Power Holding Corporation - a subsidiary of the Vietnam National Coal-Mineral Industries Holding Corporation Ltd (Vinacomin), told more than 100 potential investors that his company is well aware of the pressure and competitive nature of the energy sector, and it strives to meet investor expectations with more effective management and operation systems.
The Vinacomin Power Holding Corporation became equitised in January 2016 with 6.8 trillion VND (302.4 million USD) in charter capital, under the stock code DTK on the Hanoi Stock Exchange's (HNX) Unlisted Public Company Market (UPCoM).
The company now has 680 million common stocks trading on the UPCoM at 14,000 VND (0.6 USD) per share, same as its preferential price in 2016. According to its 2016 financial report, the company finished with 354 billion VND (15.74 million USD) in post-tax income, down by 29.36 percent from its 2015 result.
The Vinacomin Power Holding Corporation is operating seven thermo-electric plants across the country, generating more than nine billion kilowatts per year. The group is considered the third largest power supplier in the growing Vietnamese power market, following Electricity of Vietnam and the PetroVietnam.
The need for thermo-electricity in the country will reach 245 billion kilowatts in 2020 and a staggering 559 billion kilowatt in 2030.
Since the company's plants are situated in close proximity to coal mines, it has managed to cut down on transportation costs and facilitate the coal sector's value chain.
PSI representative explained at the conference that the aforementioned loss could be attributed to the large capital flow into Vinacomin's power projects. At present, the company's plants have yet to generate enough revenue to break even, so it will take a few more years before the amount of outstanding debts decline and income goes up.
However, PSI also warned that Vinacomin's DTK stock has a low liquidity rate, and could pose risks for investors. As of now, up to 99.68 percent of the company's shares is owned by the State-owned enterprise Vinacomin, with low value of free float shares.
Vinacomin's Deputy General Director Nguyen Van Bien said at the conference that in accordance with the Prime Minister's orientation for the 2016-20 period, Vinacomin plans to restructure all its subsidiaries. In particular, the group will divest from its Vinacomin Power Holding Corporation in two phases. The first phase will see the State ownership reducing from 99.68 percent to 65 percent and the second phase shifting from 65 percent to 51 percent by the end of 2018.
The group will also divest down to 36 percent from the Vinacomin Housing and Infrastructure Company Limited, 51 percent at the Vinacomin-Việt Bắc Geology Joint Stock Company, and 65 percent at the Vinacomin Minerals Holding Corporation.
The group hopes to mobilise as many investments at home and abroad as possible, and will give priority to potential investors with strong financial ability, experience in the power sector or those willing to commit to a long-term deal with the company, Bien said.
The group plans to announce further plans in the third quarter of 2017 to help hesitant investors make their decisions by the end of the year.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article: http://english.vietnamnet.vn/fms/business/182832/major-energy-firms-woo-investors.html
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Saturday, July 29, 2017
Philippines: Power in 3 quake-hit Visayas provinces now restored - DOE
Philippines: Power in 3 quake-hit Visayas provinces now restored - DOE
The electricity in three quake-hit provinces of Visayas has been fully
restored, according to the Department of Energy.
In a statement, the DOE said the restoration of power in the provinces of
Leyte, Samar and Bohol were ahead of the earlier deadline.
Energy Secretary Alfonso Cusi commended all those in the energy department
and industry participants who contributed to attaining this achievement four
days earlier than the 31 July deadline.
"I congratulate and thank the hardworking people, especially those on the
ground, for attaining 100 percent restoration of power in Leyte, Samar and
Bohol, " Cusi said.
The System Operator, National Grid Corporation of the Philippines, reported
to the DOE that the newly transferred 150Mva Transformer 2 at the Ormoc
Substation was successfully energized at on Wednesday and is loading
electricity effective Friday, July 28.
Cusi explained that another 135 MW could be delivered to Leyte, Samar and
Bohol.
"The task to build a stronger and more resilient energy system lies ahead.
Our hosting of the Asian Cooperation Dialogue in Bohol next week will help
us learn more and do more," Cusi added.
The total potential of 330 megawatts in the three islands to address its
projected peak demand of 291 megawatts is broken down with 135 megawatts
traversing the Ormoc Substation; 40 megawatts from Tongonan Geothermal Power
Plant; (3) around 20 megawatts from various embedded generation sources; and
(4) an additional 135 megawatts through the Ormoc Substation.
The projected peak demand for Leyte, Samar and Bohol is 291 megawatts, with
210 megawatts for Leyte and Samar and 81 megawatts for Bohol.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://davaotoday.com/main/politics/power-in-3-quake-hit-visayas-provinces-n
ow-restored-doe/
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
The electricity in three quake-hit provinces of Visayas has been fully
restored, according to the Department of Energy.
In a statement, the DOE said the restoration of power in the provinces of
Leyte, Samar and Bohol were ahead of the earlier deadline.
Energy Secretary Alfonso Cusi commended all those in the energy department
and industry participants who contributed to attaining this achievement four
days earlier than the 31 July deadline.
"I congratulate and thank the hardworking people, especially those on the
ground, for attaining 100 percent restoration of power in Leyte, Samar and
Bohol, " Cusi said.
The System Operator, National Grid Corporation of the Philippines, reported
to the DOE that the newly transferred 150Mva Transformer 2 at the Ormoc
Substation was successfully energized at on Wednesday and is loading
electricity effective Friday, July 28.
Cusi explained that another 135 MW could be delivered to Leyte, Samar and
Bohol.
"The task to build a stronger and more resilient energy system lies ahead.
Our hosting of the Asian Cooperation Dialogue in Bohol next week will help
us learn more and do more," Cusi added.
The total potential of 330 megawatts in the three islands to address its
projected peak demand of 291 megawatts is broken down with 135 megawatts
traversing the Ormoc Substation; 40 megawatts from Tongonan Geothermal Power
Plant; (3) around 20 megawatts from various embedded generation sources; and
(4) an additional 135 megawatts through the Ormoc Substation.
The projected peak demand for Leyte, Samar and Bohol is 291 megawatts, with
210 megawatts for Leyte and Samar and 81 megawatts for Bohol.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://davaotoday.com/main/politics/power-in-3-quake-hit-visayas-provinces-n
ow-restored-doe/
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Refinancing launches for Indonesia's Paiton
Refinancing launches for Indonesia's Paiton
The three shareholders in Indonesia's Paiton coal-fired power plant complex
have launched a $2.75 billion bond and loan refinancing. The new debt comes
about six years after Paiton paid down its 1990s-vintage bond debt and marks
another chapter in the story of Asia's benchmark independent power plant
(IPP).
The rule 144A-eligible issue, which is currently going through roadshows and
is likely to price in the next few days, would be the first large
international project bond to close in the Asian market for about a decade.
While Asian energy and infrastructure issuers have occasionally been able to
access high-yield, private placement or leveraged loan markets, large 144A
issues have been rare, particularly compared to the Middle East and Latin
America.
The shareholders in three-unit 2.045MW Paiton are Japanese trading company
Mitsui & Co (45.5%), Qatar's Nebras Power (35.5%), Jera, a joint venture of
Japanese utilities Tokyo Electric (Tepco) and Chubu Electric (14%) and local
investor Batu Hitam Perkasa (5%). The banks leading the bond refinancing for
Dutch-registered special purpose company Minejesa Capital are Barclays and
HSBC, while Citi, DBS and Deutsche are also bookrunners.
The shareholding structure of Paiton has undergone several changes in the
last 12 months. In July 2016 Jera took over Tepco's stake in Paiton. In
December 2016 Nebras acquired Engie's stake in the complex after Engie
decided it wanted to reduce its exposure to coal-fired generation.
Mitsui is now the only one of the plant's original developers that is still
a shareholder. Of the other founders Edison Mission, a subsidiary of
Californian utility Southern California Edison, sold out during the last
decade and is now part of NRG Energy. GE Capital, now under the brand of GE
Energy Financial Services, still buys stakes in power plants, though less
frequently in emerging markets than before. BHP, since merged with Billiton,
now concentrates on mining and oil & gas. Engie had acquired its stake in
the plant when it acquired UK IPP International Power, which in turn had
bought out Edison in 2004.
In a sense, Paiton is a good microcosm of what has happened to the IPP
business in Asia, with US utilities and suppliers giving way initially to
Asian investors, and more recently Middle Eastern sponsors expanding outside
their original market. But Paiton also illustrates the evolution of the
Indonesian IPP market - its rise, fall, and rebirth. Paiton's construction
financing included a bond component, with those bonds only being retired in
2010.
Paiton's operational history has been excellent. Since its first two units
came online in 1999 (the third arrived in 2012), it has experienced only one
major outage, when a transformer failed in 2014 for four months, as Fitch
Ratings, in its BBB- rating on the refinancing notes. Paiton's troubles, and
its credit today, mirror the health of Indonesia's state-owned utility PLN.
It was PLN's struggle to keep up with its dollar obligations under power
purchase agreements (PPAs) with foreign-owned IPPs, after the 1997
devaluation of the rupiah that forced Paiton into a drawn-out restructuring
that encompassed commercial banks, US Ex-Im and the original set of
bondholders.
As PLN regained its reputation as a reliable customer, and Indonesia's
economy improved, PLN was able to start building new power plants, as well
as procure power from IPPs. While the process of obtaining land has
bedevilled the financing and construction of new capacity, PLN's willingness
to service its obligations is no longer in doubt, and Mitsui has gained a
good reputation for sticking with its projects.
But lenders to Indonesia's power sector have grown used to receiving
generous financing terms from borrowers. When JBIC participated in the
$1.519 billion financing for unit 3, which closed in 2010, it could still
request that a proportion of the PPA for Paiton be indexed to the Japanese
yen, to lessen its foreign exchange exposure. The refinancing, as a result,
includes a yen loan component to manage the impact of this partial
indexation.
Fitch Ratings has assigned an expected BBB- rating to the debt for the
project, the same level as its sovereign rating on Indonesia, which has been
investment grade since 2011, though Fitch's outlook on the sovereign is
positive, while its rating on the issuer is stable. Moody's has assigned the
bonds a Baa3 rating.
Anastasiya Kapustina, an associate director at Fitch Ratings in London, says
that there are "structural enhancements in the debt, including cross-default
provisions between the bank and bond debt, if debt/ebitda goes above 6x, and
a default covenant, if the debt service coverage ratio (DSCR) falls below
1.05x. These covenants will not endure beyond the repayment of the bank debt
in 2023, but bonds will continue to benefit from locks on distributions if
the on the debt falls below 1.2x."
The refinancing will pay down outstanding debt, including both operating
company debt and some holding company debt that goes back to the Edison
acquisition, and swap breakages, as well as pay a dividend to the sponsors.
It will simplify Paiton's capital structure and allow the recent changes in
shareholders to bed down.
However, there is one slight kink in the structure that stems in part from
the terms of the PPA, and in part from the use of a separate financing
vehicle. PLN would typically have to consent to a pledge of shares in the
issuer, so the financing instead grants the trustee for the bonds a power of
attorney that gives it the ability to vote or sell shares and manage
accounts. As Ray Tay, a vice-president in Singapore at Moody's Investors
Service, notes "this is an uncommon mechanism in lieu of a share pledge."
Indonesia is still likely to use coal to meet much of its current and future
power generating requirements, despite increasing nervousness at development
finance institutions and ECAs about funding the technology. Still,
greenfield and brownfield project bonds could be a vital way of bringing in
new capital into a variety of Asian infrastructure sectors, not just
Indonesian coal. According to Moody's Tay, bank loans account for about 90%
of project finance debt in Asia, suggesting that there is huge potential for
a more liquid project bond market in Asia.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.txfnews.com/News/Article/6182/Back-to-the-future-Refinancing-laun
ches-for-Indonesias-Paiton
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
The three shareholders in Indonesia's Paiton coal-fired power plant complex
have launched a $2.75 billion bond and loan refinancing. The new debt comes
about six years after Paiton paid down its 1990s-vintage bond debt and marks
another chapter in the story of Asia's benchmark independent power plant
(IPP).
The rule 144A-eligible issue, which is currently going through roadshows and
is likely to price in the next few days, would be the first large
international project bond to close in the Asian market for about a decade.
While Asian energy and infrastructure issuers have occasionally been able to
access high-yield, private placement or leveraged loan markets, large 144A
issues have been rare, particularly compared to the Middle East and Latin
America.
The shareholders in three-unit 2.045MW Paiton are Japanese trading company
Mitsui & Co (45.5%), Qatar's Nebras Power (35.5%), Jera, a joint venture of
Japanese utilities Tokyo Electric (Tepco) and Chubu Electric (14%) and local
investor Batu Hitam Perkasa (5%). The banks leading the bond refinancing for
Dutch-registered special purpose company Minejesa Capital are Barclays and
HSBC, while Citi, DBS and Deutsche are also bookrunners.
The shareholding structure of Paiton has undergone several changes in the
last 12 months. In July 2016 Jera took over Tepco's stake in Paiton. In
December 2016 Nebras acquired Engie's stake in the complex after Engie
decided it wanted to reduce its exposure to coal-fired generation.
Mitsui is now the only one of the plant's original developers that is still
a shareholder. Of the other founders Edison Mission, a subsidiary of
Californian utility Southern California Edison, sold out during the last
decade and is now part of NRG Energy. GE Capital, now under the brand of GE
Energy Financial Services, still buys stakes in power plants, though less
frequently in emerging markets than before. BHP, since merged with Billiton,
now concentrates on mining and oil & gas. Engie had acquired its stake in
the plant when it acquired UK IPP International Power, which in turn had
bought out Edison in 2004.
In a sense, Paiton is a good microcosm of what has happened to the IPP
business in Asia, with US utilities and suppliers giving way initially to
Asian investors, and more recently Middle Eastern sponsors expanding outside
their original market. But Paiton also illustrates the evolution of the
Indonesian IPP market - its rise, fall, and rebirth. Paiton's construction
financing included a bond component, with those bonds only being retired in
2010.
Paiton's operational history has been excellent. Since its first two units
came online in 1999 (the third arrived in 2012), it has experienced only one
major outage, when a transformer failed in 2014 for four months, as Fitch
Ratings, in its BBB- rating on the refinancing notes. Paiton's troubles, and
its credit today, mirror the health of Indonesia's state-owned utility PLN.
It was PLN's struggle to keep up with its dollar obligations under power
purchase agreements (PPAs) with foreign-owned IPPs, after the 1997
devaluation of the rupiah that forced Paiton into a drawn-out restructuring
that encompassed commercial banks, US Ex-Im and the original set of
bondholders.
As PLN regained its reputation as a reliable customer, and Indonesia's
economy improved, PLN was able to start building new power plants, as well
as procure power from IPPs. While the process of obtaining land has
bedevilled the financing and construction of new capacity, PLN's willingness
to service its obligations is no longer in doubt, and Mitsui has gained a
good reputation for sticking with its projects.
But lenders to Indonesia's power sector have grown used to receiving
generous financing terms from borrowers. When JBIC participated in the
$1.519 billion financing for unit 3, which closed in 2010, it could still
request that a proportion of the PPA for Paiton be indexed to the Japanese
yen, to lessen its foreign exchange exposure. The refinancing, as a result,
includes a yen loan component to manage the impact of this partial
indexation.
Fitch Ratings has assigned an expected BBB- rating to the debt for the
project, the same level as its sovereign rating on Indonesia, which has been
investment grade since 2011, though Fitch's outlook on the sovereign is
positive, while its rating on the issuer is stable. Moody's has assigned the
bonds a Baa3 rating.
Anastasiya Kapustina, an associate director at Fitch Ratings in London, says
that there are "structural enhancements in the debt, including cross-default
provisions between the bank and bond debt, if debt/ebitda goes above 6x, and
a default covenant, if the debt service coverage ratio (DSCR) falls below
1.05x. These covenants will not endure beyond the repayment of the bank debt
in 2023, but bonds will continue to benefit from locks on distributions if
the on the debt falls below 1.2x."
The refinancing will pay down outstanding debt, including both operating
company debt and some holding company debt that goes back to the Edison
acquisition, and swap breakages, as well as pay a dividend to the sponsors.
It will simplify Paiton's capital structure and allow the recent changes in
shareholders to bed down.
However, there is one slight kink in the structure that stems in part from
the terms of the PPA, and in part from the use of a separate financing
vehicle. PLN would typically have to consent to a pledge of shares in the
issuer, so the financing instead grants the trustee for the bonds a power of
attorney that gives it the ability to vote or sell shares and manage
accounts. As Ray Tay, a vice-president in Singapore at Moody's Investors
Service, notes "this is an uncommon mechanism in lieu of a share pledge."
Indonesia is still likely to use coal to meet much of its current and future
power generating requirements, despite increasing nervousness at development
finance institutions and ECAs about funding the technology. Still,
greenfield and brownfield project bonds could be a vital way of bringing in
new capital into a variety of Asian infrastructure sectors, not just
Indonesian coal. According to Moody's Tay, bank loans account for about 90%
of project finance debt in Asia, suggesting that there is huge potential for
a more liquid project bond market in Asia.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.txfnews.com/News/Article/6182/Back-to-the-future-Refinancing-laun
ches-for-Indonesias-Paiton
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Vietnam says others should respect its right to drill for South China Sea oil
Vietnam says others should respect its right to drill for South China Sea
oil
Vietnam on Friday said other countries should respect its legitimate right
to drill for oil in its waters amid growing tension with China over energy
development in the South China Sea.
The drilling began in mid-June in Vietnam's Block 136/3, which is licensed
to Vietnam's state oil firm, Spain's Repsol and Mubadala Development Co of
the United Arab Emirates.
The block lies inside the U-shaped "nine-dash line" that marks the vast area
that China claims in the sea and overlaps what it says are its own oil
concessions.
China on Tuesday urged a halt to the drilling.
"Vietnam's petroleum-related activities take place in the sea entirely under
the sovereignty and jurisdiction of Vietnam established in accordance with
international law," Vietnamese Foreign Ministry spokeswoman Le Thi Thu Hang
said in a statement sent to Reuters.
"Vietnam proposes all concerned parties to respect the legitimate rights and
interests of Vietnam."
This week, the BBC reported that Vietnam had halted drilling there after
Chinese threats, but there was no independent confirmation and neither
Vietnamese officials nor Repsol made any comment on the report.
Thomson Reuters data showed the drilling ship Deepsea Metro I was in the
same position on Friday as it had been since drilling began on the block in
the middle of June.
China claims most of the energy-rich South China Sea through which about
US$5 trillion in ship-borne trade passes every year. Brunei, Malaysia, the
Philippines, Taiwan and Vietnam also have claims.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.channelnewsasia.com/news/asiapacific/vietnam-says-others-should-r
espect-its-right-to-drill-for-south-china-sea-oil-9074258
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
oil
Vietnam on Friday said other countries should respect its legitimate right
to drill for oil in its waters amid growing tension with China over energy
development in the South China Sea.
The drilling began in mid-June in Vietnam's Block 136/3, which is licensed
to Vietnam's state oil firm, Spain's Repsol and Mubadala Development Co of
the United Arab Emirates.
The block lies inside the U-shaped "nine-dash line" that marks the vast area
that China claims in the sea and overlaps what it says are its own oil
concessions.
China on Tuesday urged a halt to the drilling.
"Vietnam's petroleum-related activities take place in the sea entirely under
the sovereignty and jurisdiction of Vietnam established in accordance with
international law," Vietnamese Foreign Ministry spokeswoman Le Thi Thu Hang
said in a statement sent to Reuters.
"Vietnam proposes all concerned parties to respect the legitimate rights and
interests of Vietnam."
This week, the BBC reported that Vietnam had halted drilling there after
Chinese threats, but there was no independent confirmation and neither
Vietnamese officials nor Repsol made any comment on the report.
Thomson Reuters data showed the drilling ship Deepsea Metro I was in the
same position on Friday as it had been since drilling began on the block in
the middle of June.
China claims most of the energy-rich South China Sea through which about
US$5 trillion in ship-borne trade passes every year. Brunei, Malaysia, the
Philippines, Taiwan and Vietnam also have claims.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.channelnewsasia.com/news/asiapacific/vietnam-says-others-should-r
espect-its-right-to-drill-for-south-china-sea-oil-9074258
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Philippines: 60 MW solar PV plant commissioned on Cebu Island
Philippines: 60 MW solar PV plant commissioned on Cebu Island
Having been awarded the certificate of compliance (COC) by the Energy
Regulatory Commission (ERC), the First Toledo Solar Energy Corporation
(FTSEC) has switched on its 60 MW solar power plant in the city of Toledo,
southwestern Cebu.
"The COC is proof that a power plant complies with all the applicable
regulations, deeming it safe to switch on and operate," said renewable
energy company Citicore Power, Inc. (CPI), the mother firm of FTSEC.
In October 2016, the Development Bank of the Philippines (DBP) granted a
P4.375 billion loan ($86.5 million) to FTSEC to partially finance the
construction of the Toledo solar power plant.
The ERC has also given a regulatory nod to Next Generation Power Technology
Corp., a wholly owned subsidiary of CPI, which operates an 18 MW solar power
plant within the Freeport Area of Bataan in Mariveles.
Meanwhile, CPI is also working to secure the COC for its third solar power
plant of 25 MW located in Silay City, Negros Occidental, which operates
under Silay Solar Power, Inc. (SSPI).
In addition to more than 100 MW of solar projects across the country,
Citicore Power Inc. is also developing hydropower projects, with several of
them recently applied with the Department of Energy, as the company
continues to actively pursue its 1,000 MW capacity target of renewable
energy capacities.
As the island country's solar boom continues, the Department of Energy for
the Philippines gave its full support earlier this year for a proposed 150
MW Conception Solar Farm, which is expected to meet the entire power needs
of the Tarlac province.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
https://www.pv-magazine.com/2017/07/28/philippines-60-mw-solar-pv-plant-comm
issioned-on-cebu-island/
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Having been awarded the certificate of compliance (COC) by the Energy
Regulatory Commission (ERC), the First Toledo Solar Energy Corporation
(FTSEC) has switched on its 60 MW solar power plant in the city of Toledo,
southwestern Cebu.
"The COC is proof that a power plant complies with all the applicable
regulations, deeming it safe to switch on and operate," said renewable
energy company Citicore Power, Inc. (CPI), the mother firm of FTSEC.
In October 2016, the Development Bank of the Philippines (DBP) granted a
P4.375 billion loan ($86.5 million) to FTSEC to partially finance the
construction of the Toledo solar power plant.
The ERC has also given a regulatory nod to Next Generation Power Technology
Corp., a wholly owned subsidiary of CPI, which operates an 18 MW solar power
plant within the Freeport Area of Bataan in Mariveles.
Meanwhile, CPI is also working to secure the COC for its third solar power
plant of 25 MW located in Silay City, Negros Occidental, which operates
under Silay Solar Power, Inc. (SSPI).
In addition to more than 100 MW of solar projects across the country,
Citicore Power Inc. is also developing hydropower projects, with several of
them recently applied with the Department of Energy, as the company
continues to actively pursue its 1,000 MW capacity target of renewable
energy capacities.
As the island country's solar boom continues, the Department of Energy for
the Philippines gave its full support earlier this year for a proposed 150
MW Conception Solar Farm, which is expected to meet the entire power needs
of the Tarlac province.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
https://www.pv-magazine.com/2017/07/28/philippines-60-mw-solar-pv-plant-comm
issioned-on-cebu-island/
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Off-grid Philippines areas can benefit from 'hybrid microgrids', says Taiwan power firm
Off-grid Philippines areas can benefit from 'hybrid microgrids', says Taiwan
power firm
THE PHILIPPINES IS MET WITH MANY POWER CHALLENGES DESPITE ITS ABUNDANT
SUPPLY OF IMMEDIATE AND NATURAL ENERGY RESOURCES. POWER PLAYERS HAVE STUDIED
THAT MUCH OF THESE ARE LAGGED DUE TO THE ISLAND-RICH ARCHIPELAGO BEING
SITUATED IN THE TYPHOON BELT.
The country bears no difference with Taiwan, which can be found in the far
north near Batanes in Luzon. But the tiny East Asian state uses an
independent power solution called "hybrid microgrids" that supply dependable
power to isolated areas for 24 hours.
Taiwanese company ControlNet International, Inc., who introduced the concept
of the microgrid type, said that the Philippines can apply the hybrid
solution to its remote islands as well as to drive similar regions to
economic growth, BusinessWorld reports.
"We can use [renewable sources like sun and wind] alongside other sources of
energy," Internation Department Executive at ControlNet Pawel Lisewski said,
who spoke with the Philippine press in the company's offices in Taipei last
July 19. He added that agricultural materials such as coconut husks can be
converted to biomass energy via gasification.
Gasification is the process of heating up a material at high temperatures
without combustion. It is usually achieved with a controlled amount of steam
or oxygen.
Lisewski likened Taiwan's power irregularities in its far-flung islands to
the Philippines', saying it "has a couple of natural challenges [which]
makes it difficult to keep power stable."
Since 2015, Taiwan's hybrid microgrid utilities have been applied in the
outer Chimei Island of Penghu and the populous Fushan Village in Kaohsiung
City, to which both are located along the Taiwan Strait connecting to
Mainland China.
According to Lisewski, the hybrid solution is a good system especially for
energy sources such as diesel and biomass since it can create a more stable
power supply unlike solar and wind, whose intermittent capacity is erratic
due to environmental conditions.
In line with this, reliance on renewable energy on the grid can also be
decreased and may even cheapen electricity costs. "With proper resources, we
can offer them a cheaper source of power," he said, citing renewables and
non-renewables can be used interchangeably since both are generally linked
to a single transmission grid.
ControlNet has expressed its interest in bringing its expertise to the
Philippines, specifically in Batanes, as long as the government is willing
to enter into such investments with a guaranteed "willingness, regulation,
and financing."
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://powerphilippines.com/2017/07/28/offgrid-ph-hybrid-microgrids-says-tai
wan-power-firm/
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
power firm
THE PHILIPPINES IS MET WITH MANY POWER CHALLENGES DESPITE ITS ABUNDANT
SUPPLY OF IMMEDIATE AND NATURAL ENERGY RESOURCES. POWER PLAYERS HAVE STUDIED
THAT MUCH OF THESE ARE LAGGED DUE TO THE ISLAND-RICH ARCHIPELAGO BEING
SITUATED IN THE TYPHOON BELT.
The country bears no difference with Taiwan, which can be found in the far
north near Batanes in Luzon. But the tiny East Asian state uses an
independent power solution called "hybrid microgrids" that supply dependable
power to isolated areas for 24 hours.
Taiwanese company ControlNet International, Inc., who introduced the concept
of the microgrid type, said that the Philippines can apply the hybrid
solution to its remote islands as well as to drive similar regions to
economic growth, BusinessWorld reports.
"We can use [renewable sources like sun and wind] alongside other sources of
energy," Internation Department Executive at ControlNet Pawel Lisewski said,
who spoke with the Philippine press in the company's offices in Taipei last
July 19. He added that agricultural materials such as coconut husks can be
converted to biomass energy via gasification.
Gasification is the process of heating up a material at high temperatures
without combustion. It is usually achieved with a controlled amount of steam
or oxygen.
Lisewski likened Taiwan's power irregularities in its far-flung islands to
the Philippines', saying it "has a couple of natural challenges [which]
makes it difficult to keep power stable."
Since 2015, Taiwan's hybrid microgrid utilities have been applied in the
outer Chimei Island of Penghu and the populous Fushan Village in Kaohsiung
City, to which both are located along the Taiwan Strait connecting to
Mainland China.
According to Lisewski, the hybrid solution is a good system especially for
energy sources such as diesel and biomass since it can create a more stable
power supply unlike solar and wind, whose intermittent capacity is erratic
due to environmental conditions.
In line with this, reliance on renewable energy on the grid can also be
decreased and may even cheapen electricity costs. "With proper resources, we
can offer them a cheaper source of power," he said, citing renewables and
non-renewables can be used interchangeably since both are generally linked
to a single transmission grid.
ControlNet has expressed its interest in bringing its expertise to the
Philippines, specifically in Batanes, as long as the government is willing
to enter into such investments with a guaranteed "willingness, regulation,
and financing."
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://powerphilippines.com/2017/07/28/offgrid-ph-hybrid-microgrids-says-tai
wan-power-firm/
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Friday, July 28, 2017
Philippines: DOE puts spotlight on reliable power supply
Philippines: DOE puts spotlight on reliable power supply
Securing reliable power supply and access to electricity for every household
has been the core focus of Energy Secretary Alfonso Cusi and his team in the
first year of the Duterte administration.
Cusi was faced with a long list of issues in the sector and the list grew
longer as he took over the top post of the Department of Energy (DOE).
He undertook a major reorganization, but retained some key personnel in the
agency, and launched a sector-wide review on the sector.
It was a very challenging year for the power sector but industry players are
seeing some improvements with the continued interest and investments in the
country, citing that more policies need to be implemented to propel the
sector.
DOE with a vision
Most important, the current DOE administration has come out with a firm
vision for the power sector, Sen. Sherwin Gatchalian said.
He is referring to the agency's new target of adding 43,765 megawatt (MW) of
power capacity by 2040 which runs parallel to government's long-term vision
dubbed Ambisyon Natin 2040.
Until 2040, the country would need 25,265 MW of baseload power which can be
sourced from coal, geothermal natural gas, nuclear, biomass and hydropower;
14,500 MW of mid-merit power which can be served by power sources such as
natural gas; and 4,000 MW peaking power from diesel oil, wind and solar
resources.
"As a policymaker, it is a big step that the DOE has formed a vision for
the country. I think that one alone is quite an achievement. In the past… it
wasn't very clear where the sector was headed," he said.
From an outsider's point-of-view, coming out with an energy mix is one of
the biggest achievements the DOE made in the first year of the Duterte
administration.
"The 70, 20, 10 is a huge leap forward for the DOE because even up to two
years ago, the DOE couldn't tell the difference between peaking and
baseload," said Sarah Fairhurst of the Launtau Group, a Hong Kong-based
strategy and consulting firm.
Late last year, Energy Secretary Alfonso Cusi announced the agency's new
energy mix comprising of 70 percent baseload, 20 percent mid-merit and 10
percent peaking, instead of setting a cap per technology.
Baseload power plants can provide the minimum level of demand in a power
grid over 24 hours while mid-merit plants are those that can fill the gap
between baseload and peaking plants which run during peak hours.
Under such scenario, each technology will compete with each other and
therefore bring down the cost of electricity. The decision is left with
power developers on which technology should they invest in as long as they
meet the country's power requirements.
However, Fairhurst cautioned that this understanding should not be used a
mandate for the power industry moving forward to flourish since supply and
demand changes over time.
"The 70-20-10 [mix] is a really nice guideline and a way of thinking about
power and is very helpful to improve the analysis of the sector. But
anything as mandatory is risky," she said.
'EO 30 for faster permitting, approval process'
Major power players are one in saying the sector remains strong with
intensifying competition and growing investments.
"First year, you've seen good growth in the economy. There's a lot of things
in power that seem to be improving. I think you're seeing a lot of projects
being built, you're seeing a lot of interest of people investing, so I think
that's very positive," Aboitiz Power Corp. chief executive officer Erramon
Aboitiz said.
"We've had some problems, some outages of some plants, earthquake and stuff
like that, but that's part of it. That's why it's important enough power
plants are built so that there are reserves, so when you have things like
these, there's enough power," he added.
They also highlighted the recently signed Executive Order (EO) 30 which
could spur more investments in the sector.
Signed by President Duterte last June 30, the EO provides that government
agencies with energy projects should presume other agencies were able to act
upon and issue their respective permits within a 30-day period.
"There also seems to be strong resolve to improve the investment climate.
[The] signing of EO 30 is a promising step," AC Energy Holdings Inc.
president and chief executive John Eric Francia said.
The DOE has been pushing for a policy that would place critical and priority
energy projects of national significance to undergo a speedier permitting
process and avoid any more delays.
This is necessary because longer processing time for power projects could
translate to higher electricity prices for consumers, Cusi said.
This will be monitored by the Energy Investment Coordinating Council (EICC),
which will be led by the DOE. The council will spearhead and coordinate
national government efforts to harmonize, integrate and streamline
regulatory processes, requirements and forms relevant to the development of
energy investments in the country.
"If you look at all the delays of power plants, it's always things like
permitting, right of way issues. I think the intention of EO 30 was to
address those, so I think that's very important," Aboitiz said.
Retail competition
But not everything was smooth sailing for the sector. The renewable energy
sector, in particular, seemed to have slowed after the feed-in tariff (FIT)
controversy and the lack of clear-cut policies as guidance.
It took a lot of time before the National Renewable Energy Board (NREB), the
DOE's advisory body tasked with the effective implementation of renewable
energy projects in the country, was able to start resolving the issues
besieging the sector.
There was the issue of too many solar projects in Negros, which congested
the transmission lines in the island and prevented them from supplying the
grid.
There was also the problem caused by the race to FIT, which stranded over
200 MW of solar capacity because they were not able to qualify under the
500-MW installation target.
"For the last year, all we have been doing is trying to put out the fire
and fix the problems such as the Negros issue, stranded solar…So what this
administration has done is resolve, try to fix those problems, including
delay in awarding of service contracts," NREB chairman Jose Layug said.
Cusi has announced that the FIT scheme would not be expanded by another
round because this only adds burden to consumers already paying high
electricity rates.
Instead, other policies will be pushed such as the Renewable Portfolio
Standards (RPS) and the Green Energy Option to further develop the sector.
RPS is a market-based policy that requires distribution utilities and other
industry participants to source a portion of their power supply from
eligible renewable energy resources.
Meanwhile, the Green Energy Option provides end-users the option to choose
RE resources as their sources of energy.
Layug said these policies are underway, with the RPS submitted to the DOE
and the Green Energy Option undergoing final tweaking process for submission
to the DOE.
Another major hurdle the sector is the implementation of retail competition
and open access (RCOA).
Intense retail competition in the segment of consumers with at least one
megawatt (MW) demand has resulted in lower electricity prices to contestable
customers, Francia said.
However, the DOE also needs to implement enabling laws or implementing rules
and regulations for the 750 kilowatt threshold under RCOA, which is still
pending with the Supreme Court, he said.
The Supreme Court issued a temporary restraining order (TRO) last February
on the DOE and Energy Regulatory Commission (ERC) to implement the mandatory
migration of large power consumers to RCOA.
The mandatory migration to RCOA of end-users with at least one-MW usage was
scheduled last Feb. 26 while users with at least 750-kw demand was supposed
to migrate by June 26.
The TRO was sought by the Philippine Chamber of Commerce and Industry, San
Beda College Alabang Inc., Ateneo de Manila University and Riverbanks
Development Corp., which said the new rules supposedly limit the accredited
suppliers for big power consumers which must be given a choice whether to
stay with their current distribution utility suppliers.
It has been 16 years since EPIRA was enacted, and RCOA is one of the
provisions that have yet to be implemented. It aims to institutionalize
competition in the supply of electricity, allowing the electricity end-users
to choose their suppliers based on low price and other factors.
ERC issue
But the most problematic agency in the sector is the Energy Regulatory
Commission.
The situation has caused uncertainty in the ERC from performing its role as
the country's power regulator as well as the sector's future developments,
Francia said.
The death last year of ERC director Francisco Villa, Jr. has opened a
Pandora's box, as his suicide letters revealed corruption activities in the
agency.
Because of this, President Duterte immediately ordered ERC officials to
resign or else he will abolish the agency. But the ERC officials did not
need the President's call.
ERC chairman Jose Vicente Salazar went on a one-month break in December
instead, but was then placed under a 90-day preventive suspension in May for
deceiving Malacañang in filing his travel authority and designating somebody
without proper authority as OIC while he was abroad.
Not only that, ERC commissioners Alfredo Non, Josefina Magpale-Asirit,
Gloria Yap-Taruc and Geronimo Sta. Ana are also facing several graft charges
and complaint for delaying mandatory implementation of the competitive
selection process (CSP) policy before the Ombudsman.
They have also been slammed by lawmakers for sitting on the approval of
power supply agreements (PSAs) filed by Manila Electric Co. (Meralco) and 90
other applications.
"I think, clearly, [we just need] a continued well-functioning DOE and ERC.
What's necessary is that the private sector and government sector move as a
team, as one and the necessary support, encouragement, incentives are
provided by the public sector in a timely action in order to enable us to
ensure adequate, reliable, quality power at the very competitive or least
cost. That's our commitment to our more than six million customers," Meralco
president Oscar Reyes said.
Apart from internal issues, the ERC also needs to fix how it regulates PSAs.
Fairhurst said it should follow what the Electric Power Industry Reform Act
of 2001 (EPIRA).
"The way that power sale agreements are regulated here, it is my contention
that it doesn't comply with EPIRA because EPIRA requires regulated prices to
enter consumers take account of actual costs and actual and economic costs.
Economic costs include opportunity costs," she said.
"EPIRA does not say you must regulate on a contract by contract basis. It
says you must regulate retail tariffs on actual and economic costs and the
ERC does not do that because they doesn't understand what the economic cost
means," she added.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.philstar.com/business/2017/07/28/1722062/doe-puts-spotlight-relia
ble-power-supply
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Securing reliable power supply and access to electricity for every household
has been the core focus of Energy Secretary Alfonso Cusi and his team in the
first year of the Duterte administration.
Cusi was faced with a long list of issues in the sector and the list grew
longer as he took over the top post of the Department of Energy (DOE).
He undertook a major reorganization, but retained some key personnel in the
agency, and launched a sector-wide review on the sector.
It was a very challenging year for the power sector but industry players are
seeing some improvements with the continued interest and investments in the
country, citing that more policies need to be implemented to propel the
sector.
DOE with a vision
Most important, the current DOE administration has come out with a firm
vision for the power sector, Sen. Sherwin Gatchalian said.
He is referring to the agency's new target of adding 43,765 megawatt (MW) of
power capacity by 2040 which runs parallel to government's long-term vision
dubbed Ambisyon Natin 2040.
Until 2040, the country would need 25,265 MW of baseload power which can be
sourced from coal, geothermal natural gas, nuclear, biomass and hydropower;
14,500 MW of mid-merit power which can be served by power sources such as
natural gas; and 4,000 MW peaking power from diesel oil, wind and solar
resources.
"As a policymaker, it is a big step that the DOE has formed a vision for
the country. I think that one alone is quite an achievement. In the past… it
wasn't very clear where the sector was headed," he said.
From an outsider's point-of-view, coming out with an energy mix is one of
the biggest achievements the DOE made in the first year of the Duterte
administration.
"The 70, 20, 10 is a huge leap forward for the DOE because even up to two
years ago, the DOE couldn't tell the difference between peaking and
baseload," said Sarah Fairhurst of the Launtau Group, a Hong Kong-based
strategy and consulting firm.
Late last year, Energy Secretary Alfonso Cusi announced the agency's new
energy mix comprising of 70 percent baseload, 20 percent mid-merit and 10
percent peaking, instead of setting a cap per technology.
Baseload power plants can provide the minimum level of demand in a power
grid over 24 hours while mid-merit plants are those that can fill the gap
between baseload and peaking plants which run during peak hours.
Under such scenario, each technology will compete with each other and
therefore bring down the cost of electricity. The decision is left with
power developers on which technology should they invest in as long as they
meet the country's power requirements.
However, Fairhurst cautioned that this understanding should not be used a
mandate for the power industry moving forward to flourish since supply and
demand changes over time.
"The 70-20-10 [mix] is a really nice guideline and a way of thinking about
power and is very helpful to improve the analysis of the sector. But
anything as mandatory is risky," she said.
'EO 30 for faster permitting, approval process'
Major power players are one in saying the sector remains strong with
intensifying competition and growing investments.
"First year, you've seen good growth in the economy. There's a lot of things
in power that seem to be improving. I think you're seeing a lot of projects
being built, you're seeing a lot of interest of people investing, so I think
that's very positive," Aboitiz Power Corp. chief executive officer Erramon
Aboitiz said.
"We've had some problems, some outages of some plants, earthquake and stuff
like that, but that's part of it. That's why it's important enough power
plants are built so that there are reserves, so when you have things like
these, there's enough power," he added.
They also highlighted the recently signed Executive Order (EO) 30 which
could spur more investments in the sector.
Signed by President Duterte last June 30, the EO provides that government
agencies with energy projects should presume other agencies were able to act
upon and issue their respective permits within a 30-day period.
"There also seems to be strong resolve to improve the investment climate.
[The] signing of EO 30 is a promising step," AC Energy Holdings Inc.
president and chief executive John Eric Francia said.
The DOE has been pushing for a policy that would place critical and priority
energy projects of national significance to undergo a speedier permitting
process and avoid any more delays.
This is necessary because longer processing time for power projects could
translate to higher electricity prices for consumers, Cusi said.
This will be monitored by the Energy Investment Coordinating Council (EICC),
which will be led by the DOE. The council will spearhead and coordinate
national government efforts to harmonize, integrate and streamline
regulatory processes, requirements and forms relevant to the development of
energy investments in the country.
"If you look at all the delays of power plants, it's always things like
permitting, right of way issues. I think the intention of EO 30 was to
address those, so I think that's very important," Aboitiz said.
Retail competition
But not everything was smooth sailing for the sector. The renewable energy
sector, in particular, seemed to have slowed after the feed-in tariff (FIT)
controversy and the lack of clear-cut policies as guidance.
It took a lot of time before the National Renewable Energy Board (NREB), the
DOE's advisory body tasked with the effective implementation of renewable
energy projects in the country, was able to start resolving the issues
besieging the sector.
There was the issue of too many solar projects in Negros, which congested
the transmission lines in the island and prevented them from supplying the
grid.
There was also the problem caused by the race to FIT, which stranded over
200 MW of solar capacity because they were not able to qualify under the
500-MW installation target.
"For the last year, all we have been doing is trying to put out the fire
and fix the problems such as the Negros issue, stranded solar…So what this
administration has done is resolve, try to fix those problems, including
delay in awarding of service contracts," NREB chairman Jose Layug said.
Cusi has announced that the FIT scheme would not be expanded by another
round because this only adds burden to consumers already paying high
electricity rates.
Instead, other policies will be pushed such as the Renewable Portfolio
Standards (RPS) and the Green Energy Option to further develop the sector.
RPS is a market-based policy that requires distribution utilities and other
industry participants to source a portion of their power supply from
eligible renewable energy resources.
Meanwhile, the Green Energy Option provides end-users the option to choose
RE resources as their sources of energy.
Layug said these policies are underway, with the RPS submitted to the DOE
and the Green Energy Option undergoing final tweaking process for submission
to the DOE.
Another major hurdle the sector is the implementation of retail competition
and open access (RCOA).
Intense retail competition in the segment of consumers with at least one
megawatt (MW) demand has resulted in lower electricity prices to contestable
customers, Francia said.
However, the DOE also needs to implement enabling laws or implementing rules
and regulations for the 750 kilowatt threshold under RCOA, which is still
pending with the Supreme Court, he said.
The Supreme Court issued a temporary restraining order (TRO) last February
on the DOE and Energy Regulatory Commission (ERC) to implement the mandatory
migration of large power consumers to RCOA.
The mandatory migration to RCOA of end-users with at least one-MW usage was
scheduled last Feb. 26 while users with at least 750-kw demand was supposed
to migrate by June 26.
The TRO was sought by the Philippine Chamber of Commerce and Industry, San
Beda College Alabang Inc., Ateneo de Manila University and Riverbanks
Development Corp., which said the new rules supposedly limit the accredited
suppliers for big power consumers which must be given a choice whether to
stay with their current distribution utility suppliers.
It has been 16 years since EPIRA was enacted, and RCOA is one of the
provisions that have yet to be implemented. It aims to institutionalize
competition in the supply of electricity, allowing the electricity end-users
to choose their suppliers based on low price and other factors.
ERC issue
But the most problematic agency in the sector is the Energy Regulatory
Commission.
The situation has caused uncertainty in the ERC from performing its role as
the country's power regulator as well as the sector's future developments,
Francia said.
The death last year of ERC director Francisco Villa, Jr. has opened a
Pandora's box, as his suicide letters revealed corruption activities in the
agency.
Because of this, President Duterte immediately ordered ERC officials to
resign or else he will abolish the agency. But the ERC officials did not
need the President's call.
ERC chairman Jose Vicente Salazar went on a one-month break in December
instead, but was then placed under a 90-day preventive suspension in May for
deceiving Malacañang in filing his travel authority and designating somebody
without proper authority as OIC while he was abroad.
Not only that, ERC commissioners Alfredo Non, Josefina Magpale-Asirit,
Gloria Yap-Taruc and Geronimo Sta. Ana are also facing several graft charges
and complaint for delaying mandatory implementation of the competitive
selection process (CSP) policy before the Ombudsman.
They have also been slammed by lawmakers for sitting on the approval of
power supply agreements (PSAs) filed by Manila Electric Co. (Meralco) and 90
other applications.
"I think, clearly, [we just need] a continued well-functioning DOE and ERC.
What's necessary is that the private sector and government sector move as a
team, as one and the necessary support, encouragement, incentives are
provided by the public sector in a timely action in order to enable us to
ensure adequate, reliable, quality power at the very competitive or least
cost. That's our commitment to our more than six million customers," Meralco
president Oscar Reyes said.
Apart from internal issues, the ERC also needs to fix how it regulates PSAs.
Fairhurst said it should follow what the Electric Power Industry Reform Act
of 2001 (EPIRA).
"The way that power sale agreements are regulated here, it is my contention
that it doesn't comply with EPIRA because EPIRA requires regulated prices to
enter consumers take account of actual costs and actual and economic costs.
Economic costs include opportunity costs," she said.
"EPIRA does not say you must regulate on a contract by contract basis. It
says you must regulate retail tariffs on actual and economic costs and the
ERC does not do that because they doesn't understand what the economic cost
means," she added.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.philstar.com/business/2017/07/28/1722062/doe-puts-spotlight-relia
ble-power-supply
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Vietnam plans to sell 34.7% stake in major power firm
Vietnam plans to sell 34.7% stake in major power firm
Vietnam plans to sell a 34.7 per cent stake in power producer Vinacomin
Power Holding Corp, worth about 3.3 trillion dong (S$196.9 million), the
government said on its website on Thursday.
The move follows a government order last year to speed up privatisation of
electricity-generating firms.
The state, which owns 99.68 per cent in the country's third-biggest power
producer, plans to reduce its stake to 65 per cent in the first stage, the
government said.
Vinacomin Power, whose charter capital stands at 6.8 trillion dong, went
private and was listed on the Hanoi Stock Exchange last year. The company's
shares were flat at 14,000 dong on Thursday.
The firm produced 4.8 billion kilowatt hour power output in the first half
of this year, up 13 per cent from a year earlier.
Revenue from power production jumped 15 percent to 6.2 trillion dong in the
same period.
In July last year, Vietnam stopped buying electricity from China, given the
increased output from domestic coal-fired and hydropower plants, according
to EVN reports.
Hanoi has been striving to trim stakes in state-owned enterprises (SOEs),
many of which have low profitability, but the progress has been slow given
the small stakes on offer, sizable state control and concerns about vested
interests.
Vietnam's reform drive, however, picked up pace after Nguyen Xuan Phuc was
sworn in as prime minister in April. He has asked privatised SOEs and big
players to speed up listing shares.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.businesstimes.com.sg/energy-commodities/vietnam-plans-to-sell-347
-stake-in-major-power-firm
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Vietnam plans to sell a 34.7 per cent stake in power producer Vinacomin
Power Holding Corp, worth about 3.3 trillion dong (S$196.9 million), the
government said on its website on Thursday.
The move follows a government order last year to speed up privatisation of
electricity-generating firms.
The state, which owns 99.68 per cent in the country's third-biggest power
producer, plans to reduce its stake to 65 per cent in the first stage, the
government said.
Vinacomin Power, whose charter capital stands at 6.8 trillion dong, went
private and was listed on the Hanoi Stock Exchange last year. The company's
shares were flat at 14,000 dong on Thursday.
The firm produced 4.8 billion kilowatt hour power output in the first half
of this year, up 13 per cent from a year earlier.
Revenue from power production jumped 15 percent to 6.2 trillion dong in the
same period.
In July last year, Vietnam stopped buying electricity from China, given the
increased output from domestic coal-fired and hydropower plants, according
to EVN reports.
Hanoi has been striving to trim stakes in state-owned enterprises (SOEs),
many of which have low profitability, but the progress has been slow given
the small stakes on offer, sizable state control and concerns about vested
interests.
Vietnam's reform drive, however, picked up pace after Nguyen Xuan Phuc was
sworn in as prime minister in April. He has asked privatised SOEs and big
players to speed up listing shares.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.businesstimes.com.sg/energy-commodities/vietnam-plans-to-sell-347
-stake-in-major-power-firm
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Indonesia requires more approvals in power firms' shareholding changes
Indonesia requires more approvals in power firms' shareholding changes
On 14 July, Baker McKenzie said that the Minister of Energy and Mineral
Resources issued Regulation No. 42 of 2017 on Supervision on Business
Activities in Energy and Mineral Resources Sector (Reg. 42), which seeks to
regulate two corporate actions of IPP companies (namely holders of
electricity generation licences, known by their Indonesian acronym IUPTL)
and IPB holders, namely: transfers of shares in IPP companies and IPB
holders; and changes in board members in those companies.
Any transfer of shares in an IUPTL holder (ie, a license for the supply of
electricity for public interest, which is the license that an IPP requires
to carry on
business) or an IPB holder requires approval by the Minister of Energy and
Mineral Resources.
Here's more from Baker McKenzie:
In the case of an IUPTL holder, a transfer can only be carried out if the
power plant has reached commercial operations and if the transfer is being
made to an entity that is more than 90% owned by the transferring sponsor.
Reg. 42 also states that for the affiliate transfer option, the affiliate
must be a direct 90% owned subsidiary of the transferring sponsor. The
regulation provides an extensive list of documents that must be submitted
with the request for approval, including an explanation of the reason for
the share transfer, approval by the buyer of power (ie, PLN, in a typical
IPP project) as well as past tax returns, and financial statements of the
transferee.
The Minister is required to issue approval or rejection within 14 business
days (for power projects) or 10 business days (for geothermal projects).
There are no "deemed approval" mechanisms if no response is received within
the prescribed period. In practice, therefore, the 14-business-day period
may be more of a guideline than a rule.
For IPB holders, Reg. 42 only states that the transfer of shares must be
done in accordance with prevailing laws and regulations (namely the
relatively unclear provision of the 2014 Geothermal Law) with prior approval
from the Minister of Energy and Mineral Resources.
For the purpose of obtaining the approval, Reg. 42 requires the IPB holder
to submit similar documents to those required for a change of shareholder in
an IUPTL holder, with the additional of evidence of payment of the latest
deadrents, production fees and production bonus (if the company has already
achieved commercial operation).
Accordingly, the fact that Reg. 42 does provide a mechanism for Minister
approval, and this list of requirements that needs to be fulfilled does
relate to documents relevant to a private (ie, non-stock market) transfer,
this does support the view that the correct interpretation of the 2014
Geothermal Law is to allow for private (ie, non-stock market) transfers.
Curiously, although the 2014 Geothermal Law clearly contemplates a transfer
of shares through the stock market, Reg. 42 does not contain a mechanism for
dealing with approvals of share transfers in a publicly listed IPB holder
(ie, it would be unworkable if the Minister were required to approve a
change in daily trading of shares in a listed company that held an IPB).
It would appear that for geothermal companies that hold both an IPB and an
IUPTL wanting to change shareholders, there is a need to make two
applications for approval.
Change of board of directors / commissioners Holders of IUPTLs must first
obtain the approval of the Minister of Energy and Mineral Resources before
making any changes to their board of directors or commissioners.
As with the share transfer approval process, there is a requirement for
submission of a number of administrative documents, including the
recommendation of the buyer of power (ie, PLN for a typical IPP) and the
past income tax returns of the incoming Director/Commissioner. Again, the
Minister must notify its approval or rejection within 14 business days.
For IPB holders, similar approval is required, except that the approval
process is slightly shorter, ie, 10 business days; there is no requirement
on the recommendation from the buyer of power; the company must provide
specific details on the reason for such change in board members.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://asian-power.com/regulation/in-focus/indonesia-requires-more-approvals
-in-power-firms-shareholding-changes
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
On 14 July, Baker McKenzie said that the Minister of Energy and Mineral
Resources issued Regulation No. 42 of 2017 on Supervision on Business
Activities in Energy and Mineral Resources Sector (Reg. 42), which seeks to
regulate two corporate actions of IPP companies (namely holders of
electricity generation licences, known by their Indonesian acronym IUPTL)
and IPB holders, namely: transfers of shares in IPP companies and IPB
holders; and changes in board members in those companies.
Any transfer of shares in an IUPTL holder (ie, a license for the supply of
electricity for public interest, which is the license that an IPP requires
to carry on
business) or an IPB holder requires approval by the Minister of Energy and
Mineral Resources.
Here's more from Baker McKenzie:
In the case of an IUPTL holder, a transfer can only be carried out if the
power plant has reached commercial operations and if the transfer is being
made to an entity that is more than 90% owned by the transferring sponsor.
Reg. 42 also states that for the affiliate transfer option, the affiliate
must be a direct 90% owned subsidiary of the transferring sponsor. The
regulation provides an extensive list of documents that must be submitted
with the request for approval, including an explanation of the reason for
the share transfer, approval by the buyer of power (ie, PLN, in a typical
IPP project) as well as past tax returns, and financial statements of the
transferee.
The Minister is required to issue approval or rejection within 14 business
days (for power projects) or 10 business days (for geothermal projects).
There are no "deemed approval" mechanisms if no response is received within
the prescribed period. In practice, therefore, the 14-business-day period
may be more of a guideline than a rule.
For IPB holders, Reg. 42 only states that the transfer of shares must be
done in accordance with prevailing laws and regulations (namely the
relatively unclear provision of the 2014 Geothermal Law) with prior approval
from the Minister of Energy and Mineral Resources.
For the purpose of obtaining the approval, Reg. 42 requires the IPB holder
to submit similar documents to those required for a change of shareholder in
an IUPTL holder, with the additional of evidence of payment of the latest
deadrents, production fees and production bonus (if the company has already
achieved commercial operation).
Accordingly, the fact that Reg. 42 does provide a mechanism for Minister
approval, and this list of requirements that needs to be fulfilled does
relate to documents relevant to a private (ie, non-stock market) transfer,
this does support the view that the correct interpretation of the 2014
Geothermal Law is to allow for private (ie, non-stock market) transfers.
Curiously, although the 2014 Geothermal Law clearly contemplates a transfer
of shares through the stock market, Reg. 42 does not contain a mechanism for
dealing with approvals of share transfers in a publicly listed IPB holder
(ie, it would be unworkable if the Minister were required to approve a
change in daily trading of shares in a listed company that held an IPB).
It would appear that for geothermal companies that hold both an IPB and an
IUPTL wanting to change shareholders, there is a need to make two
applications for approval.
Change of board of directors / commissioners Holders of IUPTLs must first
obtain the approval of the Minister of Energy and Mineral Resources before
making any changes to their board of directors or commissioners.
As with the share transfer approval process, there is a requirement for
submission of a number of administrative documents, including the
recommendation of the buyer of power (ie, PLN for a typical IPP) and the
past income tax returns of the incoming Director/Commissioner. Again, the
Minister must notify its approval or rejection within 14 business days.
For IPB holders, similar approval is required, except that the approval
process is slightly shorter, ie, 10 business days; there is no requirement
on the recommendation from the buyer of power; the company must provide
specific details on the reason for such change in board members.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://asian-power.com/regulation/in-focus/indonesia-requires-more-approvals
-in-power-firms-shareholding-changes
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Philippines: MRC Allied partners with Chinese firm for energy deals
Philippines: MRC Allied partners with Chinese firm for energy deals
MRC Allied Incorporated and China Energy Engineering Group Guangdong Power
Engineering Company Limited will jointly explore opportunities in the
Philippines' renewable energy sector.
The publicly-listed MRC Allied said in a statement on Thursday, July 27,
that it has signed a memorandum of understanding (MOU) with China Energy
Engineering Group for local renewable energy ventures.
"The purpose of the MOU is to confirm that both parties have an interest in
developing renewable energy projects in the Philippines as identified by
[the company]," said MRC Allied, which also holds a diversified portfolio in
property development and mining exploration.
Under the MOU, China Energy Engineering Group will conduct due diligence for
a period of one year from the signing.
The purpose of the due diligence is to allow China Energy Engineering Group
to make a decision to pursue renewable energy projects with MRC Allied.
Also, the parties are bound by the terms and confidentiality while the MUO
is in force and within one year thereafter.
China Energy Engineering Group, a company based in Guangzhou, engages in the
business of exploration, development, and construction of energy projects.
MRC Allied is diversifying into the energy sector, particularly renewable
energy. (READ: Renewable energy is healthy energy)
Its primary purpose is to develop, design, construct, operate, maintain,
buy, acquire, sell, import, and export renewable and clean energy equipment,
systems, power plants, and technologies.
1,000 megawatts
MRC Allied president Gladys Nalda has said that the company plans to put up
at least 1,000 megawatts (MW) of renewable energy in the next 5 years.
"In line with our vision to be one of the major players in the Philippine
power industry, we plan to develop at least 1,000 megawatts of clean and
renewable energy by 2022," said Nalda, former vice president for legal and
corporate affairs of state-owned PNOC Renewables Corporation and legal
counsel of the Department of Energy.
For this year, MRC Allied has an aggregate of 160MW solar capacity in the
pipeline. These are in Clark Green City, Tarlac and in Naga City, Cebu, with
a target installed capacity of 100MW and 60MW, respectively.
Last June, the board implemented a P1-billion private placement and created
preferred shares to be part of the increase in the company's authorized
capital stock.
The authorized capital stock of the company is P3.5 billion, consisting of 3
billion common shares with par value of 50 centavos per share and two
billion preferred shares with par value of P1 per share.
The company expects to generate a combined P2 billion from both capital
raising moves, while another P1 billion is expected to be raised from other
sources, including institutional investors.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.rappler.com/business/176900-mrc-allied-partners-with-china-energy
-engineering-group
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
MRC Allied Incorporated and China Energy Engineering Group Guangdong Power
Engineering Company Limited will jointly explore opportunities in the
Philippines' renewable energy sector.
The publicly-listed MRC Allied said in a statement on Thursday, July 27,
that it has signed a memorandum of understanding (MOU) with China Energy
Engineering Group for local renewable energy ventures.
"The purpose of the MOU is to confirm that both parties have an interest in
developing renewable energy projects in the Philippines as identified by
[the company]," said MRC Allied, which also holds a diversified portfolio in
property development and mining exploration.
Under the MOU, China Energy Engineering Group will conduct due diligence for
a period of one year from the signing.
The purpose of the due diligence is to allow China Energy Engineering Group
to make a decision to pursue renewable energy projects with MRC Allied.
Also, the parties are bound by the terms and confidentiality while the MUO
is in force and within one year thereafter.
China Energy Engineering Group, a company based in Guangzhou, engages in the
business of exploration, development, and construction of energy projects.
MRC Allied is diversifying into the energy sector, particularly renewable
energy. (READ: Renewable energy is healthy energy)
Its primary purpose is to develop, design, construct, operate, maintain,
buy, acquire, sell, import, and export renewable and clean energy equipment,
systems, power plants, and technologies.
1,000 megawatts
MRC Allied president Gladys Nalda has said that the company plans to put up
at least 1,000 megawatts (MW) of renewable energy in the next 5 years.
"In line with our vision to be one of the major players in the Philippine
power industry, we plan to develop at least 1,000 megawatts of clean and
renewable energy by 2022," said Nalda, former vice president for legal and
corporate affairs of state-owned PNOC Renewables Corporation and legal
counsel of the Department of Energy.
For this year, MRC Allied has an aggregate of 160MW solar capacity in the
pipeline. These are in Clark Green City, Tarlac and in Naga City, Cebu, with
a target installed capacity of 100MW and 60MW, respectively.
Last June, the board implemented a P1-billion private placement and created
preferred shares to be part of the increase in the company's authorized
capital stock.
The authorized capital stock of the company is P3.5 billion, consisting of 3
billion common shares with par value of 50 centavos per share and two
billion preferred shares with par value of P1 per share.
The company expects to generate a combined P2 billion from both capital
raising moves, while another P1 billion is expected to be raised from other
sources, including institutional investors.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.rappler.com/business/176900-mrc-allied-partners-with-china-energy
-engineering-group
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Petronas to exit offshore Vietnam blocks
Petronas to exit offshore Vietnam blocks
Petronas will relinquish Blocks 1 and 2 offshore Vietnam to host authority
PetroVietnam once the production sharing contract (PSC) for the blocks
expire on 9 September.
Petronas subsidiary PC Vietnam Ltd.'s (PCVL) 26-year PSC for the blocks,
located in the Cuu Long Basin, took effect on 9 September 1991, and marked
an important first step at the start of Petronas' globalization journey, the
company said in a 27 July press statement. PCVL is ending operations as
stipulated by the contract terms.
"As a pioneer investor in the oil and gas industry of Vietnam, we are proud
to have been given the opportunity by the host government to play a
significant role in the development of the country's oil and gas and
petrochemical industries," said Petronas President and Group Chief Executive
Officer Datuk Wan Zulkiflee Wan Ariffin in the press statement.
The company will continue to conduct upstream production operations offshore
Vietnam at Blocks 102 and 106 in the Song Hong Basin. These blocks are
operated by Petronas Carigali Overseas Sdn Bhd.
The offshore Cuu Long and Nam Con Son basins have been the primary areas for
oil production in Vietnam, according to a February 2017 report by the US
Energy Information Administration. In 2016, Vietnam produced an estimated
320,000 b/d of petroleum and other liquids, nine percent lower than 2015
production of 350,000 b/d.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.oedigital.com/component/k2/item/15894-petronas-to-exit-offshore-v
ietnam-blocks
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Petronas will relinquish Blocks 1 and 2 offshore Vietnam to host authority
PetroVietnam once the production sharing contract (PSC) for the blocks
expire on 9 September.
Petronas subsidiary PC Vietnam Ltd.'s (PCVL) 26-year PSC for the blocks,
located in the Cuu Long Basin, took effect on 9 September 1991, and marked
an important first step at the start of Petronas' globalization journey, the
company said in a 27 July press statement. PCVL is ending operations as
stipulated by the contract terms.
"As a pioneer investor in the oil and gas industry of Vietnam, we are proud
to have been given the opportunity by the host government to play a
significant role in the development of the country's oil and gas and
petrochemical industries," said Petronas President and Group Chief Executive
Officer Datuk Wan Zulkiflee Wan Ariffin in the press statement.
The company will continue to conduct upstream production operations offshore
Vietnam at Blocks 102 and 106 in the Song Hong Basin. These blocks are
operated by Petronas Carigali Overseas Sdn Bhd.
The offshore Cuu Long and Nam Con Son basins have been the primary areas for
oil production in Vietnam, according to a February 2017 report by the US
Energy Information Administration. In 2016, Vietnam produced an estimated
320,000 b/d of petroleum and other liquids, nine percent lower than 2015
production of 350,000 b/d.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.oedigital.com/component/k2/item/15894-petronas-to-exit-offshore-v
ietnam-blocks
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Gas Distribution Networks Targeted in Total 46 Regions in Indonesia This Year
Gas Distribution Networks Targeted in Total 46 Regions in Indonesia This
Year
The government, through the Directorate General of Oil and Gas of the
Ministry of Energy and Mineral Resources (ESDM), targets to install 271.5
thousand household gas distribution connections in 2017.
"In 2017, the target is 271.5 thousand household connections, which includes
247.5 thousand connections from state-owned gas distributor firm PT PGN Tbk
and 16 thousand from PT Pertagas firm. The development is financed mainly
through funds from the state budget," Director of Oil and Gas Infrastructure
Planning and Development Alimuddin Baso remarked in Jakarta on Wednesday.
The government is targeting to set up gas distribution networks in a total
of 46 regions in 2017. Since 2015, a total of 210 city gas network areas
were planned to be developed until 2019. The funds for 10 areas will be
sourced from the state budget, while the rest will be funded by state-owned
enterprises.
The use of a gas distribution network connection is more efficient than
liquefied petroleum gas (LPG) in cylinders. A three-kilogram (kg) LPG worth
IDR20-23 thousand is equivalent to IDR18 thousand of liquefied natural gas
(LNG). As compared to the 12-kg LPG cylinder worth IDR130 thousand, LNG
distributed through the network connection is only IDR72 thousand.
Earlier, ESDM Minister Ignatius Jonan had promised additional gas network
connections for households through the state budget funds in 2017. "Funds
for the gas network will be sourced from the allocation of around IDR190
billion for financing tank construction," Jonan noted.
According to Jonan, assuming that a connection costs about IDR10 million per
household, with additional funds worth IDR190 billion, a total of 19
thousand more connections can be provided in some regions in Indonesia. "The
use of additional funds will be accorded to the development of the network."
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.en.netralnews.com/news/business/read/8840/gas.distribution.networ
ks.targeted.in.total.46.regions.in.indonesia.this.year
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Year
The government, through the Directorate General of Oil and Gas of the
Ministry of Energy and Mineral Resources (ESDM), targets to install 271.5
thousand household gas distribution connections in 2017.
"In 2017, the target is 271.5 thousand household connections, which includes
247.5 thousand connections from state-owned gas distributor firm PT PGN Tbk
and 16 thousand from PT Pertagas firm. The development is financed mainly
through funds from the state budget," Director of Oil and Gas Infrastructure
Planning and Development Alimuddin Baso remarked in Jakarta on Wednesday.
The government is targeting to set up gas distribution networks in a total
of 46 regions in 2017. Since 2015, a total of 210 city gas network areas
were planned to be developed until 2019. The funds for 10 areas will be
sourced from the state budget, while the rest will be funded by state-owned
enterprises.
The use of a gas distribution network connection is more efficient than
liquefied petroleum gas (LPG) in cylinders. A three-kilogram (kg) LPG worth
IDR20-23 thousand is equivalent to IDR18 thousand of liquefied natural gas
(LNG). As compared to the 12-kg LPG cylinder worth IDR130 thousand, LNG
distributed through the network connection is only IDR72 thousand.
Earlier, ESDM Minister Ignatius Jonan had promised additional gas network
connections for households through the state budget funds in 2017. "Funds
for the gas network will be sourced from the allocation of around IDR190
billion for financing tank construction," Jonan noted.
According to Jonan, assuming that a connection costs about IDR10 million per
household, with additional funds worth IDR190 billion, a total of 19
thousand more connections can be provided in some regions in Indonesia. "The
use of additional funds will be accorded to the development of the network."
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.en.netralnews.com/news/business/read/8840/gas.distribution.networ
ks.targeted.in.total.46.regions.in.indonesia.this.year
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Thailand: Petronas LNG supply in reach
Thailand: Petronas LNG supply in reach
PTT Exploration and Production Plc (PTTEP) is to secure the supply of
liquefied natural gas (LNG) by purchasing a 10% stake in an LNG production
resource of Malaysia's national oil firm, Petroliam Nasional Berhad
(Petronas), for US$500 million (16.7 billion baht).
PTTEP will acquire the stake through PTTGL Investment Co (PTTGLI). A share
sale and purchase agreement was signed yesterday in Malaysia.
PTTGLI is wholly owned by PTT Global LNG, which is owned 50:50 by PTTEP and
its parent firm, PTT Plc.
President and chief executive Somporn Vongvuthipornchai said the 10% stake
in the Petronas asset covers Petronas LNG 9 Sdn Bhd (PL9SB), located in
Bintulu, Sarawak.
PTTEP and PTT will pay $250 million each for the deal, with the transaction
to be completed by September.
After asset acquisition, other shareholders of this LNG production facility
will be shaken off, with Petronas remaining a major shareholder with 80%,
PTTEP worth 10% and JXTG Nippon Oil and Energy Corporation holding the
remaining 10% through Nippon Oil Finance Netherlands BV.
PL9SB operates an LNG liquefaction facility at Train 9 in the Petronas
complex with annual production of 3.6 million tonnes, which commenced
production in January this year.
Mr Somporn said the deal could secure additional LNG supply for the Thai gas
market, which is imported solely by PTT to supply rising demand,
particularly in the power generating sector. PTT has already secured 5.2
million tonnes of LNG in advance by committing to purchasing contracts with
Qatar Gas, Shell, British Gas and Petronas.
The latest 10% stake being acquired from PL9SB will add to the 5.2 million
tonnes of gas.
"The LNG liquefaction plant purchase deal is aimed at integrating PTT
group's LNG gas business, which still lacks a midstream LNG supply chain,"
Mr Somporn said.
PTT group operates upstream LNG supply through PTTEP, while its downstream
business operates independently at Rayong's Map Ta Phut LNG receiving
terminal.
PTT's LNG receiving terminal has a storage capacity of 10 million tonnes a
year and the company is planning to increase capacity to almost 20 tonnes
within 4-5 years.
PTTEP has E&P petroleum resources in more than 10 countries worldwide.
Mozambique's offshore Rovuma Area 1 and Australia's Cash and Maple have the
most potential for LNG production. The company is still conducting
feasibility studies on the projects, which are expected to be complete by
the end of the year, when the company executives will decide whether to
continue exploration.
Mr Somporn said capital expenditures for the deal will be funded from PTT
Regional Treasury Center Pte and PTTEP Treasury Center Co.
PTTEP shares closed on the SET yesterday at 87.75 baht, up 50 satang, in
trade worth 683 million baht.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.bangkokpost.com/business/news/1295351/petronas-lng-supply-in-reac
h
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
PTT Exploration and Production Plc (PTTEP) is to secure the supply of
liquefied natural gas (LNG) by purchasing a 10% stake in an LNG production
resource of Malaysia's national oil firm, Petroliam Nasional Berhad
(Petronas), for US$500 million (16.7 billion baht).
PTTEP will acquire the stake through PTTGL Investment Co (PTTGLI). A share
sale and purchase agreement was signed yesterday in Malaysia.
PTTGLI is wholly owned by PTT Global LNG, which is owned 50:50 by PTTEP and
its parent firm, PTT Plc.
President and chief executive Somporn Vongvuthipornchai said the 10% stake
in the Petronas asset covers Petronas LNG 9 Sdn Bhd (PL9SB), located in
Bintulu, Sarawak.
PTTEP and PTT will pay $250 million each for the deal, with the transaction
to be completed by September.
After asset acquisition, other shareholders of this LNG production facility
will be shaken off, with Petronas remaining a major shareholder with 80%,
PTTEP worth 10% and JXTG Nippon Oil and Energy Corporation holding the
remaining 10% through Nippon Oil Finance Netherlands BV.
PL9SB operates an LNG liquefaction facility at Train 9 in the Petronas
complex with annual production of 3.6 million tonnes, which commenced
production in January this year.
Mr Somporn said the deal could secure additional LNG supply for the Thai gas
market, which is imported solely by PTT to supply rising demand,
particularly in the power generating sector. PTT has already secured 5.2
million tonnes of LNG in advance by committing to purchasing contracts with
Qatar Gas, Shell, British Gas and Petronas.
The latest 10% stake being acquired from PL9SB will add to the 5.2 million
tonnes of gas.
"The LNG liquefaction plant purchase deal is aimed at integrating PTT
group's LNG gas business, which still lacks a midstream LNG supply chain,"
Mr Somporn said.
PTT group operates upstream LNG supply through PTTEP, while its downstream
business operates independently at Rayong's Map Ta Phut LNG receiving
terminal.
PTT's LNG receiving terminal has a storage capacity of 10 million tonnes a
year and the company is planning to increase capacity to almost 20 tonnes
within 4-5 years.
PTTEP has E&P petroleum resources in more than 10 countries worldwide.
Mozambique's offshore Rovuma Area 1 and Australia's Cash and Maple have the
most potential for LNG production. The company is still conducting
feasibility studies on the projects, which are expected to be complete by
the end of the year, when the company executives will decide whether to
continue exploration.
Mr Somporn said capital expenditures for the deal will be funded from PTT
Regional Treasury Center Pte and PTTEP Treasury Center Co.
PTTEP shares closed on the SET yesterday at 87.75 baht, up 50 satang, in
trade worth 683 million baht.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.bangkokpost.com/business/news/1295351/petronas-lng-supply-in-reac
h
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Pöyry and AWR Lloyd to conduct new study on future of Thailand's power industry
Pöyry and AWR Lloyd to conduct new study on future of Thailand's power
industry
Pöyry and AWR Lloyd will commence a new multi-client study to provide
insight into the threats and opportunities related to the power industry in
Thailand.
Scheduled to begin by September this year, the study is expected to produce
final results by December.
Entitled 'Running on Empty', the study will provide information on the
potential risks that could emerge from the country's increasing dependency
on liquefied natural gas (LNG).
Thailand's current national power development plan includes a transition to
LNG dependency. However, a detailed field-based natural gas supply and
demand model shows that the country might face greater risks than
anticipated.
Running on Empty will also help to form a regulatory framework for
Thailand's energy sector.
Pöyry will use its BID3 electricity market model to deliver insights into
the impacts of the ongoing energy trends on stakeholders.
Pöyry noted that constant decline in energy technology costs, a growing
commercial track record, and the risk of higher imported LNG costs make
renewable energy, power storage, and electric vehicles increasingly viable.
The partnership is currently inviting industry stakeholders to join the
study as both regular subscribers and steering committee members.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.power-technology.com/news/newspyry-and-awr-lloyd-to-conduct-new-s
tudy-on-future-of-thailands-power-industry-5884118?WT.mc_id=DN_News
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
industry
Pöyry and AWR Lloyd will commence a new multi-client study to provide
insight into the threats and opportunities related to the power industry in
Thailand.
Scheduled to begin by September this year, the study is expected to produce
final results by December.
Entitled 'Running on Empty', the study will provide information on the
potential risks that could emerge from the country's increasing dependency
on liquefied natural gas (LNG).
Thailand's current national power development plan includes a transition to
LNG dependency. However, a detailed field-based natural gas supply and
demand model shows that the country might face greater risks than
anticipated.
Running on Empty will also help to form a regulatory framework for
Thailand's energy sector.
Pöyry will use its BID3 electricity market model to deliver insights into
the impacts of the ongoing energy trends on stakeholders.
Pöyry noted that constant decline in energy technology costs, a growing
commercial track record, and the risk of higher imported LNG costs make
renewable energy, power storage, and electric vehicles increasingly viable.
The partnership is currently inviting industry stakeholders to join the
study as both regular subscribers and steering committee members.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.power-technology.com/news/newspyry-and-awr-lloyd-to-conduct-new-s
tudy-on-future-of-thailands-power-industry-5884118?WT.mc_id=DN_News
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Philippines: Mindanao to work on more renewable energy sources
Philippines: Mindanao to work on more renewable energy sources
The National Renewable Energy Board (NREB) urged power producers to embark
on sourcing of renewable energy (RE) following the approval of the guideline
of Renewable Portfolio Standards (RPS)
NREB chair Jose Layug, Jr., who was in Davao City for the public
consultation on RPS held at the SMX Convention Center on Wednesday, July 26,
said power source ratio in Mindanao is at 60-40 in favour of coal, Layug
said. "We are hoping that with the RPS bumalik kayo dun sa level in 2011
which is 70 percent RE," he said.
Layug said that the government has been encouraging power producers,
including cooperatives to invest on RE
"Our preference is to have more renewable energy," he said.
He cited that there are successful RE investments in the Philippines like
the Cadiz Solar Power Farm in Negros Occidental which is the biggest in
Southeast Asia and also the Wind Power Farm in Bangui, Ilocos Norte.
Without naming the details of RE projects which are in the pipeline, he said
several projects are on the list for possible investments in the island.
"Mindanao has very good prospects on RE," Layug said.
Layug underscored that RE can be sourced from biomass, water to energy
technology wind, solar, run-of-river hydroelectric power systems, impounding
hydroelectric power systems, ocean energy, hybrid systems as defined in the
RE Act, with respect to the RE component, geothermal energy.
On the other hand, he said there are revisions made in the application as
Department of Energy (DOE) committing for a 25-day processing from complete
submission of documents.
Citing Republic Act 9513 or the Renewable Energy Act of 2008 (RE Act), Layug
said it is the declared policy of the State to increase the utilization of
RE by institutionalizing the development of national and local capabilities
in the use of RE systems, and promoting their efficient and cost-effective
commercial application by providing fiscal and non-fiscal incentives.
The Epira (Electric Power Industry Reform Act) mandates DOE to encourage
private sector investments in the electricity sector and promote the
development of indigenous and RE resources.
Layug is hopeful on the approval of RPS by the third quarter this year to
give consumers the option on what source they would want if green energy or
the conventional source like coal. All the consumers will do is call their
distribution utilities (DUs) that they want their power, for instance, be
sourced from renewable energy, he explained.
He added this will also give consumers of Mindanao choices once the green
energy option rules come out.
Layug stressed that through the RPS consultation the stakeholders will have
a better understanding and reduce the level of opposition compared to their
previous consultations conducted in 2011.
He said the next consultation will be held in Manila next month. Its
objective is to increase to 35 percent the actual utilization of RE in the
entire Philippines by 2030 and this would be about 10,000 megawatts of new
installed capacity of renewable energy throughout the country.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article: http://www.pna.gov.ph/articles/1003303
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
The National Renewable Energy Board (NREB) urged power producers to embark
on sourcing of renewable energy (RE) following the approval of the guideline
of Renewable Portfolio Standards (RPS)
NREB chair Jose Layug, Jr., who was in Davao City for the public
consultation on RPS held at the SMX Convention Center on Wednesday, July 26,
said power source ratio in Mindanao is at 60-40 in favour of coal, Layug
said. "We are hoping that with the RPS bumalik kayo dun sa level in 2011
which is 70 percent RE," he said.
Layug said that the government has been encouraging power producers,
including cooperatives to invest on RE
"Our preference is to have more renewable energy," he said.
He cited that there are successful RE investments in the Philippines like
the Cadiz Solar Power Farm in Negros Occidental which is the biggest in
Southeast Asia and also the Wind Power Farm in Bangui, Ilocos Norte.
Without naming the details of RE projects which are in the pipeline, he said
several projects are on the list for possible investments in the island.
"Mindanao has very good prospects on RE," Layug said.
Layug underscored that RE can be sourced from biomass, water to energy
technology wind, solar, run-of-river hydroelectric power systems, impounding
hydroelectric power systems, ocean energy, hybrid systems as defined in the
RE Act, with respect to the RE component, geothermal energy.
On the other hand, he said there are revisions made in the application as
Department of Energy (DOE) committing for a 25-day processing from complete
submission of documents.
Citing Republic Act 9513 or the Renewable Energy Act of 2008 (RE Act), Layug
said it is the declared policy of the State to increase the utilization of
RE by institutionalizing the development of national and local capabilities
in the use of RE systems, and promoting their efficient and cost-effective
commercial application by providing fiscal and non-fiscal incentives.
The Epira (Electric Power Industry Reform Act) mandates DOE to encourage
private sector investments in the electricity sector and promote the
development of indigenous and RE resources.
Layug is hopeful on the approval of RPS by the third quarter this year to
give consumers the option on what source they would want if green energy or
the conventional source like coal. All the consumers will do is call their
distribution utilities (DUs) that they want their power, for instance, be
sourced from renewable energy, he explained.
He added this will also give consumers of Mindanao choices once the green
energy option rules come out.
Layug stressed that through the RPS consultation the stakeholders will have
a better understanding and reduce the level of opposition compared to their
previous consultations conducted in 2011.
He said the next consultation will be held in Manila next month. Its
objective is to increase to 35 percent the actual utilization of RE in the
entire Philippines by 2030 and this would be about 10,000 megawatts of new
installed capacity of renewable energy throughout the country.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article: http://www.pna.gov.ph/articles/1003303
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
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