Philippines: Russia looking into possible revival of Bataan Nuclear Power
Plant
Representatives from Russian State Atomic Energy Corporation (ROSATOM),
Slovenia's Gen Enerjia, and internationally known nuclear firm Worley
Parsons are in the country to conduct a study on the possible rehabilitation
of Bataan Nuclear Power Plant (BNPP) in Bataan.
According to the department, the foreign experts will "make a preliminary
assessment of the possibility and viability of rehabilitating the plant."
It added that the service "is being provided by ROSATUM for free as part of
the cooperation between the Philippines and Russia."
The study will formally take place in September.. Experts are expected to
finish their assessment within two months.
In May 2016, Department of Science and Technology (DOST) and ROSATOM signed
a Memorandum of Agreement on Cooperation on the Use of Nuclear Energy for
Peaceful Purposes.
"The general purpose of this agreement is to develop cooperation in the area
of peaceful use of atomic energy in accordance with domestic laws, rules and
regulations and, of course, international agreements that govern the
peaceful use of atomic energy," Philippine Ambassador to Russia Carlos D.
Sorreta said.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
https://www.update.ph/2017/08/russia-looking-into-possible-revival-of-bataan
-nuclear-power-plant/20396
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Thursday, August 31, 2017
Malaysia: Sarawak energy continues with research programme for greater sustainability standards
Malaysia: Sarawak energy continues with research programme for greater
sustainability standards
Sarawak Energy (SEB) will continue its research into the environmental
aspect of hydroelectric dams in line with its commitment towards high
standards of sustainability, said its executive vice president of Corporate
Services Aisah Eden.
She said Sarawak Energy was working closely with institutions of higher
learning and hydropower sustainability specialists to ensure that the
state's utility company was meeting the global sustainability standards and
expectation.
"Sarawak Energy is committed to develop clean and renewable energy in the
state and developing hydropower in accordance with the internationally
accredited sustainability principles covering the four pillars of
sustainability in economic, technical, social and environmental aspects of
the project," Aisah said at the opening of the Biodiversity and Ecology
Seminar held at Menara Sarawak Energy here recently.
Findings of the research, she said would enable Sarawak Energy to address
any emerging concerns as well as to demonstrate to its globally based
customers of its commitment and ability to deliver truly green and
sustainable energy for their businesses.
She said results from the research would also facilitate in decision-making
for future sustainable project development.
Aisah said Sarawak Energy foresaw more opportunities for research
collaboration with Universiti Malaysia Sarawak (Unimas).
Besides collaborating with institutions of higher learning, she said,
Sarawak Energy had also engaged an internationally recognised hydropower
sustainability specialist, Dr Helen Locher, together with experts from the
International Hydropower Association to conduct a review on phase one of the
Hydropower Environmental Sustainability Programme end of last year.
The one-day seminar was jointly organised by Sarawak Energy and Unimas to
present the findings of their collaboration into studies of aquatic and
terrestrial ecology and biodiversity under the Hydropower Environmental
Sustainability Programme.
A total of seven papers were presented during the seminar.
Among them were on water and sediment quality in relation to aquatic fauna;
macroinvertebrates fauna of three major rivers; two man-made reservoirs and
distribution of heavy metals in the environment.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.thesundaily.my/news/2017/08/30/sarawak-energy-continues-research-
programme-greater-sustainability-standards
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
sustainability standards
Sarawak Energy (SEB) will continue its research into the environmental
aspect of hydroelectric dams in line with its commitment towards high
standards of sustainability, said its executive vice president of Corporate
Services Aisah Eden.
She said Sarawak Energy was working closely with institutions of higher
learning and hydropower sustainability specialists to ensure that the
state's utility company was meeting the global sustainability standards and
expectation.
"Sarawak Energy is committed to develop clean and renewable energy in the
state and developing hydropower in accordance with the internationally
accredited sustainability principles covering the four pillars of
sustainability in economic, technical, social and environmental aspects of
the project," Aisah said at the opening of the Biodiversity and Ecology
Seminar held at Menara Sarawak Energy here recently.
Findings of the research, she said would enable Sarawak Energy to address
any emerging concerns as well as to demonstrate to its globally based
customers of its commitment and ability to deliver truly green and
sustainable energy for their businesses.
She said results from the research would also facilitate in decision-making
for future sustainable project development.
Aisah said Sarawak Energy foresaw more opportunities for research
collaboration with Universiti Malaysia Sarawak (Unimas).
Besides collaborating with institutions of higher learning, she said,
Sarawak Energy had also engaged an internationally recognised hydropower
sustainability specialist, Dr Helen Locher, together with experts from the
International Hydropower Association to conduct a review on phase one of the
Hydropower Environmental Sustainability Programme end of last year.
The one-day seminar was jointly organised by Sarawak Energy and Unimas to
present the findings of their collaboration into studies of aquatic and
terrestrial ecology and biodiversity under the Hydropower Environmental
Sustainability Programme.
A total of seven papers were presented during the seminar.
Among them were on water and sediment quality in relation to aquatic fauna;
macroinvertebrates fauna of three major rivers; two man-made reservoirs and
distribution of heavy metals in the environment.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.thesundaily.my/news/2017/08/30/sarawak-energy-continues-research-
programme-greater-sustainability-standards
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Mitsubishi gensets to power Indonesian islands
Mitsubishi gensets to power Indonesian islands
Mitsubishi Heavy Industries Engine & Turbocharger (MHIET) has been
contracted to supply 147 MGS Series diesel generator sets in Indonesia to
state-owned electric utility PT PLN (Persero).
Indonesia, which is made up of thousands of islands, depends on such
independently-operated power systems for electricity generation.
PT PLN intends to have the gensets to become operational by mid-2018 across
19 districts of Kalimantan and three districts of Sulawesi. MHIET will be
supplying its MGS1500C line of gensets which are the prime offering of the
MGS Series range.
Each of the gensets would generate continuous energy of 1.2 MW. Owing to
their operation at high speeds, MHIET has manufactured their engines to be
in small in size and light in weight.
The Japanese firm says that several MGS1500C gensets can be installed even
in limited space due to their size, thus providing a major advantage to
their users.
By September end, MHIET will be completing the manufacturing and shipping of
the 147 gensets. The company's subsidiary Mitsubishi Heavy Industries Engine
System Asia (MHIES-A) will source the required generators and other
associated equipment and components.
MHIET stated that after completion of the power generating sets, its
Indonesian dealer Berkat Manunggal Jaya (BMJ) will install the gensets and
carry out test operations before delivering them on its behalf to PLN.
The Japanese firm will be responsible for providing remote monitoring
services from its head office in Sagamihara for all installations once they
enter into commercial operation.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.decentralized-energy.com/articles/2017/08/mitsubishi-gensets-to-p
ower-indonesian-islands.html
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Mitsubishi Heavy Industries Engine & Turbocharger (MHIET) has been
contracted to supply 147 MGS Series diesel generator sets in Indonesia to
state-owned electric utility PT PLN (Persero).
Indonesia, which is made up of thousands of islands, depends on such
independently-operated power systems for electricity generation.
PT PLN intends to have the gensets to become operational by mid-2018 across
19 districts of Kalimantan and three districts of Sulawesi. MHIET will be
supplying its MGS1500C line of gensets which are the prime offering of the
MGS Series range.
Each of the gensets would generate continuous energy of 1.2 MW. Owing to
their operation at high speeds, MHIET has manufactured their engines to be
in small in size and light in weight.
The Japanese firm says that several MGS1500C gensets can be installed even
in limited space due to their size, thus providing a major advantage to
their users.
By September end, MHIET will be completing the manufacturing and shipping of
the 147 gensets. The company's subsidiary Mitsubishi Heavy Industries Engine
System Asia (MHIES-A) will source the required generators and other
associated equipment and components.
MHIET stated that after completion of the power generating sets, its
Indonesian dealer Berkat Manunggal Jaya (BMJ) will install the gensets and
carry out test operations before delivering them on its behalf to PLN.
The Japanese firm will be responsible for providing remote monitoring
services from its head office in Sagamihara for all installations once they
enter into commercial operation.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.decentralized-energy.com/articles/2017/08/mitsubishi-gensets-to-p
ower-indonesian-islands.html
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Gov't subsidies, transparency are gateway to lowering Philippines expensive electricity prices
Gov't subsidies, transparency are gateway to lowering Philippines expensive
electricity prices
PRESENCE OF GOVERNMENT SUBSIDIES AND GREATER TRANSPARENCY IN UNBUNDLING
ELECTRICITY RATES ARE MAJOR SOLUTIONS TO LOWERING DOWN EXPENSIVE POWER RATES
IN THE PHILIPPINES, ACCORDING TO THE LATEST DOE (DEPARTMENT OF ENERGY)
REPORT.
In the recently published Power Development Plan 2017 to 2040, the
Philippines has one of the highest electricity tariffs in Southeast Asia as
of end-2016, posting an average industry rate of P5.84 per kWh.
The country also accounts for having outstanding commercial and household
rates of P7.49 per kWh and P8.90 per kWh, respectively.
These soaring prices, DOE said, is the effect of lack of government
subsidies to levy the power sector in all levels including taxes, fees, and
miscellaneous charges, that make up energy rates nationwide.
"Thailand, Indonesia, and Malaysia arguably have subsidies. In addition,
taxes, fees, and other charges are also levied on the power industry sectors
composed of the generation, transmission, and distribution levels which
constitute a portion of electricity rates in the Philippines," DOE said.
But on a lighter note, the government viewed this concern as a gateway for
"greater transparency" in looking into the country's high electricity
tariffs.
"Greater transparency of having reasonably-priced electricity rates through
more unbundling of items in the energy supply chain remains part of the
major thrusts of the DOE, its attached agencies, and the Energy Regulatory
Commission," DOE added.
In a study conducted by International Energy Consultants (IEC) last year, an
Australian consulting firm, Manila Electric Co. (Meralco) was found the
third top-ranking electricity distributor in Asia, fourth in the Asia
Pacific, and 16th in global ranks.
Meralco moved from second to third based on IEC's survey after its average
rates, excluding taxes, went down by 28 percent from January 2012 to January
2016. This is mainly due to the electricity retail's reduced distribution
fees, lower system loss, and sourcing strategies.
Overall, there is an average decline of 19 percent across 44 countries
during the four-year period due to the continuous decrease in power
generation and fuel costs, IEC said.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://powerphilippines.com/2017/08/30/doe-govt-subsidies-transparency-ph-el
ectricity-rates/
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
electricity prices
PRESENCE OF GOVERNMENT SUBSIDIES AND GREATER TRANSPARENCY IN UNBUNDLING
ELECTRICITY RATES ARE MAJOR SOLUTIONS TO LOWERING DOWN EXPENSIVE POWER RATES
IN THE PHILIPPINES, ACCORDING TO THE LATEST DOE (DEPARTMENT OF ENERGY)
REPORT.
In the recently published Power Development Plan 2017 to 2040, the
Philippines has one of the highest electricity tariffs in Southeast Asia as
of end-2016, posting an average industry rate of P5.84 per kWh.
The country also accounts for having outstanding commercial and household
rates of P7.49 per kWh and P8.90 per kWh, respectively.
These soaring prices, DOE said, is the effect of lack of government
subsidies to levy the power sector in all levels including taxes, fees, and
miscellaneous charges, that make up energy rates nationwide.
"Thailand, Indonesia, and Malaysia arguably have subsidies. In addition,
taxes, fees, and other charges are also levied on the power industry sectors
composed of the generation, transmission, and distribution levels which
constitute a portion of electricity rates in the Philippines," DOE said.
But on a lighter note, the government viewed this concern as a gateway for
"greater transparency" in looking into the country's high electricity
tariffs.
"Greater transparency of having reasonably-priced electricity rates through
more unbundling of items in the energy supply chain remains part of the
major thrusts of the DOE, its attached agencies, and the Energy Regulatory
Commission," DOE added.
In a study conducted by International Energy Consultants (IEC) last year, an
Australian consulting firm, Manila Electric Co. (Meralco) was found the
third top-ranking electricity distributor in Asia, fourth in the Asia
Pacific, and 16th in global ranks.
Meralco moved from second to third based on IEC's survey after its average
rates, excluding taxes, went down by 28 percent from January 2012 to January
2016. This is mainly due to the electricity retail's reduced distribution
fees, lower system loss, and sourcing strategies.
Overall, there is an average decline of 19 percent across 44 countries
during the four-year period due to the continuous decrease in power
generation and fuel costs, IEC said.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://powerphilippines.com/2017/08/30/doe-govt-subsidies-transparency-ph-el
ectricity-rates/
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Philippines: PNOC budget hangs due to feasibility study lack on LNG terminal
Philippines: PNOC budget hangs due to feasibility study lack on LNG terminal
The Senate has held off deliberations on the proposed budget of state-owned
Philippine National Oil Company (PNOC) due to lacking submission of its
feasibility study on planned liquefied natural gas (LNG) terminal and
related gas infrastructure projects.
"We had to defer because if you look at the budget, there's that provision
for P505 million as new allocation for LNG terminal but it does not have a
feaasibility study yet," Senate Committee on Energy Chairman Sherwin T.
Gatchalian said.
He indicated that they cannot just fly blind in approving an enormous amount
"for something that we don't know if it will make money or not."
Gatchalian opined that if the government would invest that P500 million for
LNG terminal as stipulated in the state-run firm's proposed budget, "we want
to make sure that they will generate profit from it."
He added that, at this point "there's no feasibility study to prove that the
planned investment is worthwhile or not, so that is our request - that they
give us first the feasibility study and they must explain to us the vision
of that LNG terminal or LNG hub, then we'll have to see if that is feasible
or not."
PNOC had cast multi-tiered ventures for the "rebirth" of the country's gas
market that will be anchored this time on value chain development of LNG
facilities.
Its major planned projects include a power plant of 200-megawatt capacity
and LNG terminal with associated facilities and distribution networks.
The board of the state-run firm postponed last month its decision to come up
with a shortlist on prospective investors on its planned LNG integrated
terminal.
PNOC Board Chairman and Energy Secretary Alfonso G. Cusi told reporters that
they had to defer a decision as they want to carefully examine first what
are the options they could have on the proposed venture.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://business.mb.com.ph/2017/08/29/pnoc-budget-hangs-due-to-feasibility-st
udy-lack-on-lng-terminal/
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
The Senate has held off deliberations on the proposed budget of state-owned
Philippine National Oil Company (PNOC) due to lacking submission of its
feasibility study on planned liquefied natural gas (LNG) terminal and
related gas infrastructure projects.
"We had to defer because if you look at the budget, there's that provision
for P505 million as new allocation for LNG terminal but it does not have a
feaasibility study yet," Senate Committee on Energy Chairman Sherwin T.
Gatchalian said.
He indicated that they cannot just fly blind in approving an enormous amount
"for something that we don't know if it will make money or not."
Gatchalian opined that if the government would invest that P500 million for
LNG terminal as stipulated in the state-run firm's proposed budget, "we want
to make sure that they will generate profit from it."
He added that, at this point "there's no feasibility study to prove that the
planned investment is worthwhile or not, so that is our request - that they
give us first the feasibility study and they must explain to us the vision
of that LNG terminal or LNG hub, then we'll have to see if that is feasible
or not."
PNOC had cast multi-tiered ventures for the "rebirth" of the country's gas
market that will be anchored this time on value chain development of LNG
facilities.
Its major planned projects include a power plant of 200-megawatt capacity
and LNG terminal with associated facilities and distribution networks.
The board of the state-run firm postponed last month its decision to come up
with a shortlist on prospective investors on its planned LNG integrated
terminal.
PNOC Board Chairman and Energy Secretary Alfonso G. Cusi told reporters that
they had to defer a decision as they want to carefully examine first what
are the options they could have on the proposed venture.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://business.mb.com.ph/2017/08/29/pnoc-budget-hangs-due-to-feasibility-st
udy-lack-on-lng-terminal/
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Philippines: GNPower raises $800 M for refinancing of its debt
Philippines: GNPower raises $800 M for refinancing of its debt
The corporate vehicle of the 690-megawatt GNPower Mariveles coal-fired power
project had cash infusion of US$800 million, mainly for debt refinancing and
the rest for general funding purposes.
GNPower Mariveles Coal Plant Ltd. Co. (GMCP), according to majority equity
holder Aboitiz Power Corporation, signed on August 29 "a notes facility
agreement with a consortium of lenders," on said loan procurement.
The noteholders had been BDO Unibank, Inc., China Banking Corporation, Land
Bank of the Philippines, Security Bank Corporation and Philippine Bank of
Communications.
Tapped as sole mandated lead arranger had been BDO Capital & Investment
Corporation, the disclosure of Aboitiz Power at the Philippine Stock
Exchange (PSE) had further stipulated.
"The proceeds of the notes will be used by GMCP to, among others, refinance
its existing loans and for other general corporate purposes," the company
said.
GMCP is a joint venture of Aboitiz Power subsidiaries Therma Mariveles
Holdings, Inc. and Therma Mariveles Camaya B.V.; Mariveles Coal Project GP
Corp., Power Partners Ltd. Co.; and the affiliates of Ayala Group's AC
Energy Holdings, Inc. namely Arlington Mariveles GP Corporation and
Arlington Mariveles Netherlands Holdings B.V.
Aboitiz Power took majority equity of 66.1 percent in GNPower Mariveles as
well as 40-percent beneficial ownership in the ongoing 668MW
GNPower-Dinginin project, in a US$1.2-billion transaction that closed last
year.
The company bought into the shareholdings previously held by investment
funds The Blackstone Group L.P. in World Power Holdings L.P.; and Sithe
Global Power, L.P.
The GNPower Mariveles facility is a commercially operating generating asset
comprising of two units at 345MW capacity each; and up for expansion via the
Dinginin power project that is targeted to be on commercial stream by year
2019.
The GNPower acquisition had been a significant step for Aboitiz Power
because this is part of the equation for its 4,000 MW capacity target by
year 2020.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://business.mb.com.ph/2017/08/30/gnpower-raises-800-m-for-refinancing-of
-its-debt/
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
The corporate vehicle of the 690-megawatt GNPower Mariveles coal-fired power
project had cash infusion of US$800 million, mainly for debt refinancing and
the rest for general funding purposes.
GNPower Mariveles Coal Plant Ltd. Co. (GMCP), according to majority equity
holder Aboitiz Power Corporation, signed on August 29 "a notes facility
agreement with a consortium of lenders," on said loan procurement.
The noteholders had been BDO Unibank, Inc., China Banking Corporation, Land
Bank of the Philippines, Security Bank Corporation and Philippine Bank of
Communications.
Tapped as sole mandated lead arranger had been BDO Capital & Investment
Corporation, the disclosure of Aboitiz Power at the Philippine Stock
Exchange (PSE) had further stipulated.
"The proceeds of the notes will be used by GMCP to, among others, refinance
its existing loans and for other general corporate purposes," the company
said.
GMCP is a joint venture of Aboitiz Power subsidiaries Therma Mariveles
Holdings, Inc. and Therma Mariveles Camaya B.V.; Mariveles Coal Project GP
Corp., Power Partners Ltd. Co.; and the affiliates of Ayala Group's AC
Energy Holdings, Inc. namely Arlington Mariveles GP Corporation and
Arlington Mariveles Netherlands Holdings B.V.
Aboitiz Power took majority equity of 66.1 percent in GNPower Mariveles as
well as 40-percent beneficial ownership in the ongoing 668MW
GNPower-Dinginin project, in a US$1.2-billion transaction that closed last
year.
The company bought into the shareholdings previously held by investment
funds The Blackstone Group L.P. in World Power Holdings L.P.; and Sithe
Global Power, L.P.
The GNPower Mariveles facility is a commercially operating generating asset
comprising of two units at 345MW capacity each; and up for expansion via the
Dinginin power project that is targeted to be on commercial stream by year
2019.
The GNPower acquisition had been a significant step for Aboitiz Power
because this is part of the equation for its 4,000 MW capacity target by
year 2020.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://business.mb.com.ph/2017/08/30/gnpower-raises-800-m-for-refinancing-of
-its-debt/
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Wednesday, August 30, 2017
Thailand: EA to build charging stations
Thailand: EA to build charging stations
A SET-listed renewable energy firm, Energy Absolute Plc (EA), has announced
plans to develop and operate charging stations for electric vehicles (EVs)
for the first time in Thailand, allotting 600 million baht to set up
charging stations nationwide over the next few years.
EA said the project will be done through its subsidiary, Energy Mahanakorn
Co (EMN), which plans to develop EV charger stations in Greater Bangkok
starting at the end of this year. A few hundred charging stations are
planned initially, rising to 1,000 units by the end of 2018.
Sompote Ahunai, chief executive of EA, said EMN also signed a memorandum of
understanding with the state utility, the Metropolitan Electricity
Authority, for coordinating and facilitating the project under the name EA
Anywhere.
The move paves the way to commercialise EVs in the near future as most EV
chargers in Thailand are only pilot projects located at state-owned oil
firms in the testing phase.
Mr Sompote said the charging stations have been designed to match new EV
technologies such as plug-in hybrid EVs and battery EVs.
With aggressive development of the EV sector, he said Thais expect to see EV
charging stations across the country within the next two years.
EMN has launched two charging stations as pilot projects since midyear at
Siam Paragon and Siam Center, which provide charging service free of charge
until October this year.
The EV charging rate is expected to be in line with the electricity rate
approved by the Energy Regulatory Commission recently.
For areas outside Bangkok, EMN plans to develop charging stations at petrol
stations of SET-listed oil retailer Susco Plc.
The government policy calls for 1.2 million units of EVs on the roads by
2036, up from only a handful now.
In related news, EA is preparing to develop one of Thailand's biggest wind
farms in Chaiyaphum, Hanuman Wind Farm, with a total capacity of 126
megawatts. Total capital expenditure for the farm is 20 billion baht.
EA is also close to the final stage of selecting a location to develop a
lithium battery production facility in Thailand.
The tentative selection area is expected to be in the planned Eastern
Economic Corridor.
EA shares closed yesterday on the Stock Exchange of Thailand at 37 baht, an
increase of 75 satang, in trade worth 716 million baht.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.bangkokpost.com/business/news/1315403/ea-to-build-charging-statio
ns
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
A SET-listed renewable energy firm, Energy Absolute Plc (EA), has announced
plans to develop and operate charging stations for electric vehicles (EVs)
for the first time in Thailand, allotting 600 million baht to set up
charging stations nationwide over the next few years.
EA said the project will be done through its subsidiary, Energy Mahanakorn
Co (EMN), which plans to develop EV charger stations in Greater Bangkok
starting at the end of this year. A few hundred charging stations are
planned initially, rising to 1,000 units by the end of 2018.
Sompote Ahunai, chief executive of EA, said EMN also signed a memorandum of
understanding with the state utility, the Metropolitan Electricity
Authority, for coordinating and facilitating the project under the name EA
Anywhere.
The move paves the way to commercialise EVs in the near future as most EV
chargers in Thailand are only pilot projects located at state-owned oil
firms in the testing phase.
Mr Sompote said the charging stations have been designed to match new EV
technologies such as plug-in hybrid EVs and battery EVs.
With aggressive development of the EV sector, he said Thais expect to see EV
charging stations across the country within the next two years.
EMN has launched two charging stations as pilot projects since midyear at
Siam Paragon and Siam Center, which provide charging service free of charge
until October this year.
The EV charging rate is expected to be in line with the electricity rate
approved by the Energy Regulatory Commission recently.
For areas outside Bangkok, EMN plans to develop charging stations at petrol
stations of SET-listed oil retailer Susco Plc.
The government policy calls for 1.2 million units of EVs on the roads by
2036, up from only a handful now.
In related news, EA is preparing to develop one of Thailand's biggest wind
farms in Chaiyaphum, Hanuman Wind Farm, with a total capacity of 126
megawatts. Total capital expenditure for the farm is 20 billion baht.
EA is also close to the final stage of selecting a location to develop a
lithium battery production facility in Thailand.
The tentative selection area is expected to be in the planned Eastern
Economic Corridor.
EA shares closed yesterday on the Stock Exchange of Thailand at 37 baht, an
increase of 75 satang, in trade worth 716 million baht.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.bangkokpost.com/business/news/1315403/ea-to-build-charging-statio
ns
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Thailand: B.Grimm upgrades revenue growth aim
Thailand: B.Grimm upgrades revenue growth aim
SET-listed B.Grimm Power Plc, the power-generation arm of the conglomerate,
expects 2017 revenue growth to surpass the previous forecast of 18% after a
strong first half, with additional power in the second half expected to
further boost earnings.
Executive vice-president and chief financial officer Nopadej Karnasuta said
two hydropower projects in Laos, namely Xenamnoy 2 and Xekatam 1, are due to
start commercial operations and generate revenue with a combined installed
capacity of 20.1 megawatts.
The company is confident that full-year revenue will grow by more than 18%
from last year's 2.77 billion baht. "We expect additional income in the
third quarter of this year from projects in Laos," Mr Nopadej said.
B.Grimm Power's solid performance in the first half also lent support to the
company's full-year view, he said. In the first half, the company posted
revenue of 15 billion baht, up 14.2% year-on-year.
Rising revenue in the first half was largely due to increasing
power-generating capacity of two power plants in two major industrial
estates with a combined capacity of 133MW -- Amata B.Grimm Power 5 in Rayong
and co-generation BPWHA1 at Hemaraj industrial estate.
"Rising revenue came from higher power sales to the Electricity Generating
Authority of Thailand from ABP5 and BPWHA1," Mr Nopadej said. He said the
company expects to benefit from fuel tariff rates set to rise by 2.5% in the
September-December period to 8.87 satang per kilowatt-hour.
Despite the revenue gain, net profit in the first half was flat at 1.01
billion baht, according to data from the Stock Exchange of Thailand.
Mr Nopadej said the company will continue to focus on increasing total
power-generating capacity of 2,482MW from a combined 44 power plants by
2022, up from 1,646MW from 30 power plants at present.
In 2018, B.Grimm is expected to have an additional capacity of 36MW from
solar projects after setting aside 12.5 billion baht for investment, not
including mergers and acquisitions.
Mr Nopadej said the company is in talks with a local partner in Cambodia to
develop a power project, including power transmission and power distribution
facilities for the Poipet special economic zone with an investment budget of
US$3 million (99.7 million baht). The project is expected to be competed in
February 2018.
"The internal rate of return of the Poipet project is about 15% a year," he
said.
B.Grimm is also negotiating with other Cambodian investors to expand into
five special economic zones in Cambodia, including Poipet.
"We expect five projects to start commercial operations in the next five
years," Mr Nopadej said. The company is also conducting a feasibility study
for a 2,500MW greenfield power plant, planned for Asean.
BGRIM shares closed yesterday on the SET at 19.10 baht, down ten satang, in
trade worth 297 million baht.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.bangkokpost.com/business/news/1314847/b-grimm-upgrades-revenue-gr
owth-aim
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
SET-listed B.Grimm Power Plc, the power-generation arm of the conglomerate,
expects 2017 revenue growth to surpass the previous forecast of 18% after a
strong first half, with additional power in the second half expected to
further boost earnings.
Executive vice-president and chief financial officer Nopadej Karnasuta said
two hydropower projects in Laos, namely Xenamnoy 2 and Xekatam 1, are due to
start commercial operations and generate revenue with a combined installed
capacity of 20.1 megawatts.
The company is confident that full-year revenue will grow by more than 18%
from last year's 2.77 billion baht. "We expect additional income in the
third quarter of this year from projects in Laos," Mr Nopadej said.
B.Grimm Power's solid performance in the first half also lent support to the
company's full-year view, he said. In the first half, the company posted
revenue of 15 billion baht, up 14.2% year-on-year.
Rising revenue in the first half was largely due to increasing
power-generating capacity of two power plants in two major industrial
estates with a combined capacity of 133MW -- Amata B.Grimm Power 5 in Rayong
and co-generation BPWHA1 at Hemaraj industrial estate.
"Rising revenue came from higher power sales to the Electricity Generating
Authority of Thailand from ABP5 and BPWHA1," Mr Nopadej said. He said the
company expects to benefit from fuel tariff rates set to rise by 2.5% in the
September-December period to 8.87 satang per kilowatt-hour.
Despite the revenue gain, net profit in the first half was flat at 1.01
billion baht, according to data from the Stock Exchange of Thailand.
Mr Nopadej said the company will continue to focus on increasing total
power-generating capacity of 2,482MW from a combined 44 power plants by
2022, up from 1,646MW from 30 power plants at present.
In 2018, B.Grimm is expected to have an additional capacity of 36MW from
solar projects after setting aside 12.5 billion baht for investment, not
including mergers and acquisitions.
Mr Nopadej said the company is in talks with a local partner in Cambodia to
develop a power project, including power transmission and power distribution
facilities for the Poipet special economic zone with an investment budget of
US$3 million (99.7 million baht). The project is expected to be competed in
February 2018.
"The internal rate of return of the Poipet project is about 15% a year," he
said.
B.Grimm is also negotiating with other Cambodian investors to expand into
five special economic zones in Cambodia, including Poipet.
"We expect five projects to start commercial operations in the next five
years," Mr Nopadej said. The company is also conducting a feasibility study
for a 2,500MW greenfield power plant, planned for Asean.
BGRIM shares closed yesterday on the SET at 19.10 baht, down ten satang, in
trade worth 297 million baht.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.bangkokpost.com/business/news/1314847/b-grimm-upgrades-revenue-gr
owth-aim
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Vietnam: Low feed-in tariff freezes wind power projects
Vietnam: Low feed-in tariff freezes wind power projects
Although wind power development is considered a great potential sector in
Vietnam, investors have been hesitant to develop new or expand their
existing projects due to the low regulated selling price of wind power
lengthening the time to recover investment capital by a significant margin.
In November 2016, Thuan Binh Wind Power JSC started the operation of the
first phase of Phu Lac wind far,, with a capacity of 2MW. To date, the plant
contributes 56 million kWh to the national grid.
However, the investor has raised concerns about the time to recover the
investment capital.
According to Bui Van Thinh, chairman of Thuan Binh Wind Power JSC, the
regulated selling price of wind power in Vietnam is among the lowest in the
world, only 7.8 cent per kWh (compared to the 20 cent per kWh in Thailand,
the 29 cent per kWh in the Philippines, and 30 cent per kWh in Japan).
The first phase of the project has a total investment capital sum of VND1.1
trillion (US$48.4 million). With the existing selling price, it will take
the company 14 years to recover their investment.
According to the plan, after operating the first phase of Phu Lac wind farm,
the company planned to develop four other similar plants, including two in
the south central provinces of Ninh Thuan and Binh Thuan and two in the
Central Highlands provinces of Dak Lak and Gia Lai.
However, these plans might just become dust in the wind if the selling price
does not increase.
Thinh stated that with the existing selling price, it is difficult for
Vietnam to reach the target of generating 800MW of wind power by 2020.
Regarding the relationship between the localisation rate of equipment
production and the potential of the sector's development, Thinh said that at
present, equipment manufactured domestically is rarely used, accounting for
20% of the total expenditure on turbines, while the remaining parts have
been imported.
In the future, enterprises in Vietnam will manufacture more equipment,
increasing the localisation rate to 40-50% of the total expenditure on
turbines.
This will increase the appeal of the Vietnamese wind power sector because
domestic equipment is generally cheaper than imported equipment.
"At present, investors' highest concern is the output of their products.
Most projects have been postponed because regulated prices were below
production costs. They are waiting for the government's decision to increase
the feed-in tariff (FiT) to restart construction," Thinh added.
Notably, Ben Tre province licensed five wind power projects with a total
capacity of 150MW, but investors have been waiting for the FiT to increase.
19 more wind power projects were registered in Binh Thuan, but work on them
has yet to begin.
Opportunities for solar power
Thuan Binh plans to develop a 150MW solar power plant on the area which the
company initially planned to use to expand Phu Lac wind power project. The
construction of the solar power project will be implemented in three phases.
The company is conducting the pre-feasibility study, an environmental impact
assessment, and capital arrangement for the first phase of the project.
Thinh said that investing in solar power have more benefits than wind power
because the regulated selling price is 9.35 cent per kWh.
Besides, in the country's new power development plan, Vietnam expects to
generate 85 MW of solar power by 2020, 4,000MW by 2025, and 12,000MW by
2030.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://english.vietnamnet.vn/fms/business/185500/low-feed-in-tariff-freezes-
wind-power-projects.html
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Although wind power development is considered a great potential sector in
Vietnam, investors have been hesitant to develop new or expand their
existing projects due to the low regulated selling price of wind power
lengthening the time to recover investment capital by a significant margin.
In November 2016, Thuan Binh Wind Power JSC started the operation of the
first phase of Phu Lac wind far,, with a capacity of 2MW. To date, the plant
contributes 56 million kWh to the national grid.
However, the investor has raised concerns about the time to recover the
investment capital.
According to Bui Van Thinh, chairman of Thuan Binh Wind Power JSC, the
regulated selling price of wind power in Vietnam is among the lowest in the
world, only 7.8 cent per kWh (compared to the 20 cent per kWh in Thailand,
the 29 cent per kWh in the Philippines, and 30 cent per kWh in Japan).
The first phase of the project has a total investment capital sum of VND1.1
trillion (US$48.4 million). With the existing selling price, it will take
the company 14 years to recover their investment.
According to the plan, after operating the first phase of Phu Lac wind farm,
the company planned to develop four other similar plants, including two in
the south central provinces of Ninh Thuan and Binh Thuan and two in the
Central Highlands provinces of Dak Lak and Gia Lai.
However, these plans might just become dust in the wind if the selling price
does not increase.
Thinh stated that with the existing selling price, it is difficult for
Vietnam to reach the target of generating 800MW of wind power by 2020.
Regarding the relationship between the localisation rate of equipment
production and the potential of the sector's development, Thinh said that at
present, equipment manufactured domestically is rarely used, accounting for
20% of the total expenditure on turbines, while the remaining parts have
been imported.
In the future, enterprises in Vietnam will manufacture more equipment,
increasing the localisation rate to 40-50% of the total expenditure on
turbines.
This will increase the appeal of the Vietnamese wind power sector because
domestic equipment is generally cheaper than imported equipment.
"At present, investors' highest concern is the output of their products.
Most projects have been postponed because regulated prices were below
production costs. They are waiting for the government's decision to increase
the feed-in tariff (FiT) to restart construction," Thinh added.
Notably, Ben Tre province licensed five wind power projects with a total
capacity of 150MW, but investors have been waiting for the FiT to increase.
19 more wind power projects were registered in Binh Thuan, but work on them
has yet to begin.
Opportunities for solar power
Thuan Binh plans to develop a 150MW solar power plant on the area which the
company initially planned to use to expand Phu Lac wind power project. The
construction of the solar power project will be implemented in three phases.
The company is conducting the pre-feasibility study, an environmental impact
assessment, and capital arrangement for the first phase of the project.
Thinh said that investing in solar power have more benefits than wind power
because the regulated selling price is 9.35 cent per kWh.
Besides, in the country's new power development plan, Vietnam expects to
generate 85 MW of solar power by 2020, 4,000MW by 2025, and 12,000MW by
2030.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://english.vietnamnet.vn/fms/business/185500/low-feed-in-tariff-freezes-
wind-power-projects.html
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Vietnam: Coal trans-shipment port gets green-light
Vietnam: Coal trans-shipment port gets green-light
Deputy PM Trinh Dinh Dung has approved a proposal to build a coal shipment port in the southern region.
The deputy PM assigned the Ministry of Industry and Trade in cooperation with the Ministry of Transport and relevant agencies to complete the port construction feasibility report. The port will carry coal to thermo-power plants in the Mekong Delta region.
As per the deputy PM's instruction, the ministries will propose coal shipment plans to serve the urgent thermo-power plant demand in the region while building suitable investment plans to submit to PM Nguyen Xuan Phuc for approval.
According to the national electricity development master plan, the Mekong Delta region will have seven major thermo-power centres, including Long Phu, Song Hau, Duyen Hai, Bac Lieu, An Giang, Kien Luong and Tien Giang.
The total demand of imported coal for the thermo-power centres would be around 11 million tonnes by 2020 and 22 million tonnes by 2025. The coal demand would increase to 43 million tonnes by 2030.
Local coal resources have been concentrated in the northeastern province of Quang Ninh which mainly serve for thermo-power centres in the northern and central provinces.
Experts argue that Vietnam should have a coal trans-shipment port to reduce costs of transport to the centres in the region. However, the Government should consider coal import sources and vessel capacity.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article: http://nangluongvietnam.vn/news/en/coal-mineral/coal-trans-shipment-port-gets-green-light.html
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Deputy PM Trinh Dinh Dung has approved a proposal to build a coal shipment port in the southern region.
The deputy PM assigned the Ministry of Industry and Trade in cooperation with the Ministry of Transport and relevant agencies to complete the port construction feasibility report. The port will carry coal to thermo-power plants in the Mekong Delta region.
As per the deputy PM's instruction, the ministries will propose coal shipment plans to serve the urgent thermo-power plant demand in the region while building suitable investment plans to submit to PM Nguyen Xuan Phuc for approval.
According to the national electricity development master plan, the Mekong Delta region will have seven major thermo-power centres, including Long Phu, Song Hau, Duyen Hai, Bac Lieu, An Giang, Kien Luong and Tien Giang.
The total demand of imported coal for the thermo-power centres would be around 11 million tonnes by 2020 and 22 million tonnes by 2025. The coal demand would increase to 43 million tonnes by 2030.
Local coal resources have been concentrated in the northeastern province of Quang Ninh which mainly serve for thermo-power centres in the northern and central provinces.
Experts argue that Vietnam should have a coal trans-shipment port to reduce costs of transport to the centres in the region. However, the Government should consider coal import sources and vessel capacity.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article: http://nangluongvietnam.vn/news/en/coal-mineral/coal-trans-shipment-port-gets-green-light.html
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Indonesia: Pertamina to Operate Mahakam Block Even without Total
Indonesia: Pertamina to Operate Mahakam Block Even without Total
State-owned oil company Pertamina will operate the Mahakam block even
without Total E&P Indonesia.
"If it can't be done with Total, we have no choice but to become the
operator on January 1, 2018," he said Monday in Jakarta.
Total is one of the Mahakam block's operator. The block is also operated by
Inpex Corporation. The two companies' contract will end this year. The
government will then let Pertamina operate the Mahakam block. The previous
operators may rejoin the project as shareholders.
According to Arief, the cooperation with Total is not yet confirmed. Both
parties have not held further talks about the acquisition of shares. Total
has offered to acquire 39 percent stake in Pertamina. But the latter will
comply with the Energy and Mineral Resources Ministry decree that a company
may only acquire up to 30 percent stake in Pertamina.
"We [Pertamina] will follow the instruction of the previous government i.e.
30 percent. Even if we agree, it will be discussed again with Total whether
the value is right," he said.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
https://en.tempo.co/read/news/2017/08/29/056904126/Pertamina-to-Operate-Maha
kam-Block-Even-without-Total
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
State-owned oil company Pertamina will operate the Mahakam block even
without Total E&P Indonesia.
"If it can't be done with Total, we have no choice but to become the
operator on January 1, 2018," he said Monday in Jakarta.
Total is one of the Mahakam block's operator. The block is also operated by
Inpex Corporation. The two companies' contract will end this year. The
government will then let Pertamina operate the Mahakam block. The previous
operators may rejoin the project as shareholders.
According to Arief, the cooperation with Total is not yet confirmed. Both
parties have not held further talks about the acquisition of shares. Total
has offered to acquire 39 percent stake in Pertamina. But the latter will
comply with the Energy and Mineral Resources Ministry decree that a company
may only acquire up to 30 percent stake in Pertamina.
"We [Pertamina] will follow the instruction of the previous government i.e.
30 percent. Even if we agree, it will be discussed again with Total whether
the value is right," he said.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
https://en.tempo.co/read/news/2017/08/29/056904126/Pertamina-to-Operate-Maha
kam-Block-Even-without-Total
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Vietnam's sole oil refinery hoping to strike it rich with $85 million stake sale
Vietnam's sole oil refinery hoping to strike it rich with $85 million stake
sale
The operator of Vietnam's only oil refinery is planning to sell a 4 percent
stake this November, and expects to raise nearly VND1.93 trillion ($84.8
million) from the offering, Bloomberg reported.
Nguyen Hoai Giang, chairman of the Binh Son Refining and Petrochemical
Company, said in a recent report that it is waiting for government approval
to sell 132 million shares for VND14,600 each on November 7.
Another 49 percent stake in the Dung Quat Refinery will go on sale next
year, he said.
Dozens of companies have shown interest in the share sale, including Spain's
Repsol SA, World Petroleum Corporation in the U.S. and Vietnam's state-owned
fuel giant Petrolimex.
"The sale is open to both local and international investors, but we will
give priority to partners that operate in the same industry and can help us
to become bigger and more efficient," he said, as cited by Bloomberg.
Binh Son was valued at VND72.88 trillion ($3.2 billion) at the end of 2015,
with the state holding a 60 percent stake, according to a trade ministry
report released more than two months ago.
The company has projected revenue this year to reach VND62.4 trillion, down
17 percent from 2016 due to an expected drop in crude oil prices and
maintenance work.
Its refinery in the central province of Quang Ngai meets around a third of
Vietnam's demand for fuel and oil products, and has the capacity to process
6.5 million tons of crude oil a year.
The company is planning to expand to meet as much as 45 percent of domestic
demand by 2022.
Vietnam's government last week also announced plans to sell a 3.33 percent
stake in dairy giant Vinamilk this October, reducing the government state to
36 percent, Reuters reported.
The company put a 9 percent stake up for sale last year, but only 5.4
percent was purchased due to investment "limitations", said Nguyen Duc Chi,
chairman of the State Capital Investment Corporation, the government's
shareholding company.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://nangluongvietnam.vn/news/en/oil-and-gas/vietnams-sole-oil-refinery-ho
ping-to-strike-it-rich-with-85-million-stake-sale.html
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
sale
The operator of Vietnam's only oil refinery is planning to sell a 4 percent
stake this November, and expects to raise nearly VND1.93 trillion ($84.8
million) from the offering, Bloomberg reported.
Nguyen Hoai Giang, chairman of the Binh Son Refining and Petrochemical
Company, said in a recent report that it is waiting for government approval
to sell 132 million shares for VND14,600 each on November 7.
Another 49 percent stake in the Dung Quat Refinery will go on sale next
year, he said.
Dozens of companies have shown interest in the share sale, including Spain's
Repsol SA, World Petroleum Corporation in the U.S. and Vietnam's state-owned
fuel giant Petrolimex.
"The sale is open to both local and international investors, but we will
give priority to partners that operate in the same industry and can help us
to become bigger and more efficient," he said, as cited by Bloomberg.
Binh Son was valued at VND72.88 trillion ($3.2 billion) at the end of 2015,
with the state holding a 60 percent stake, according to a trade ministry
report released more than two months ago.
The company has projected revenue this year to reach VND62.4 trillion, down
17 percent from 2016 due to an expected drop in crude oil prices and
maintenance work.
Its refinery in the central province of Quang Ngai meets around a third of
Vietnam's demand for fuel and oil products, and has the capacity to process
6.5 million tons of crude oil a year.
The company is planning to expand to meet as much as 45 percent of domestic
demand by 2022.
Vietnam's government last week also announced plans to sell a 3.33 percent
stake in dairy giant Vinamilk this October, reducing the government state to
36 percent, Reuters reported.
The company put a 9 percent stake up for sale last year, but only 5.4
percent was purchased due to investment "limitations", said Nguyen Duc Chi,
chairman of the State Capital Investment Corporation, the government's
shareholding company.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://nangluongvietnam.vn/news/en/oil-and-gas/vietnams-sole-oil-refinery-ho
ping-to-strike-it-rich-with-85-million-stake-sale.html
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Southeast Asia gets smart about power plants
Southeast Asia gets smart about power plants
Southeast Asian countries are adopting cutting-edge information technology
to improve the efficiency and environmental impact of fossil fuel power
plants that the region relies on to meet surging energy demand.
Japanese trader Marubeni and Global Power Synergy Co., an affiliate of
Thailand's national oil company PTT, have reached a basic agreement to
install sensors at existing power plants that will allow operational data to
be gathered and analyzed.
A gas-burning plant run by GPSC in Rayong Province is the leading candidate
to become the first facility to receive the sensors. An artificial
intelligence system is expected to begin running after six months of initial
data collection. Plant managers will be notified about optimal operational
settings and failure risks to avoid unexpected shutdowns. Power generator
makers vie to improve efficiency by even just 0.1%, but "these digital
systems are expected to reap far greater results," said Masayuki Nishida,
manager of Marubeni Thailand's power project division.
Smart power generation using "internet of things" technology is still a
rarity, even among advanced nations. This will be the first such project in
Thailand and is expected to cost several million dollars initially. GPSC
will introduce the system to other plants depending on the results from
Rayong. The PTT Group is eyeing internet of things technology for industrial
equipment beyond power plants.
"For the past 300 years, man has learned how to operate machines," said
Surong Bilakulm, chairman of GPSC and an adviser to PTT. "The machines
became cleaner and more reliable, but we still have to detect what is
happening to them [and handle] maintenance. The new technology will enable
the machines to tell us what to do. The machines will be operating by
themselves."
Other countries are also working to harness such technology in their power
plants.
In July, Indonesia's state-run power company PJB reached an agreement with
General Electric to introduce Predix, an industrial internet of things
platform, at 21 sites.
Several thousand sensors will be installed at each plant to collect data.
Analyzing the vast trove of information is seen revealing the root causes of
breakdowns, enabling the utility to "better predict and prevent outages
before they happen," according to GE.
Southeast Asia's six major economies, including Indonesia and Thailand, used
roughly 900 billion kilowatt-hours of electricity in 2016, a 60% jump from
2007, according to statistics from BP. The region is on track to overtake
Japan, which uses about 1 trillion kilowatt-hours annually.
Although solar and wind power are spreading in Southeast Asia, the
overwhelming majority of electricity is still generated from the region's
plentiful coal and natural gas resources.
Most countries want to limit new equipment costs and are optimizing existing
plants to squeeze more power out of the same amount of fuel. Net energy
importers like Thailand hold a particular interest in efficiency, commented
one Japanese heavy electric machinery maker.
Japanese companies are also bringing internet of things solutions to the
Philippines. Toshiba is supporting optimization efforts at local
conglomerate DMCI Holdings' Calaca power plant in southern Luzon. The two
companies signed a memorandum of understanding in July.
Mitsubishi Hitachi Power Systems, in partnership with Tokyo Electric Power
Co. Holdings, will also introduce such technology to a conventional power
plant in Pagbilao, another municipality in southern Luzon. The failure
detection system has already been tested at a plant in Japan.
The two companies estimate that a 1% improvement in efficiency can save
several million dollars annually at a conventional power plant with an
output of 1 million kilowatts.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
https://asia.nikkei.com/Business/Trends/Southeast-Asia-gets-smart-about-powe
r-plants
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Southeast Asian countries are adopting cutting-edge information technology
to improve the efficiency and environmental impact of fossil fuel power
plants that the region relies on to meet surging energy demand.
Japanese trader Marubeni and Global Power Synergy Co., an affiliate of
Thailand's national oil company PTT, have reached a basic agreement to
install sensors at existing power plants that will allow operational data to
be gathered and analyzed.
A gas-burning plant run by GPSC in Rayong Province is the leading candidate
to become the first facility to receive the sensors. An artificial
intelligence system is expected to begin running after six months of initial
data collection. Plant managers will be notified about optimal operational
settings and failure risks to avoid unexpected shutdowns. Power generator
makers vie to improve efficiency by even just 0.1%, but "these digital
systems are expected to reap far greater results," said Masayuki Nishida,
manager of Marubeni Thailand's power project division.
Smart power generation using "internet of things" technology is still a
rarity, even among advanced nations. This will be the first such project in
Thailand and is expected to cost several million dollars initially. GPSC
will introduce the system to other plants depending on the results from
Rayong. The PTT Group is eyeing internet of things technology for industrial
equipment beyond power plants.
"For the past 300 years, man has learned how to operate machines," said
Surong Bilakulm, chairman of GPSC and an adviser to PTT. "The machines
became cleaner and more reliable, but we still have to detect what is
happening to them [and handle] maintenance. The new technology will enable
the machines to tell us what to do. The machines will be operating by
themselves."
Other countries are also working to harness such technology in their power
plants.
In July, Indonesia's state-run power company PJB reached an agreement with
General Electric to introduce Predix, an industrial internet of things
platform, at 21 sites.
Several thousand sensors will be installed at each plant to collect data.
Analyzing the vast trove of information is seen revealing the root causes of
breakdowns, enabling the utility to "better predict and prevent outages
before they happen," according to GE.
Southeast Asia's six major economies, including Indonesia and Thailand, used
roughly 900 billion kilowatt-hours of electricity in 2016, a 60% jump from
2007, according to statistics from BP. The region is on track to overtake
Japan, which uses about 1 trillion kilowatt-hours annually.
Although solar and wind power are spreading in Southeast Asia, the
overwhelming majority of electricity is still generated from the region's
plentiful coal and natural gas resources.
Most countries want to limit new equipment costs and are optimizing existing
plants to squeeze more power out of the same amount of fuel. Net energy
importers like Thailand hold a particular interest in efficiency, commented
one Japanese heavy electric machinery maker.
Japanese companies are also bringing internet of things solutions to the
Philippines. Toshiba is supporting optimization efforts at local
conglomerate DMCI Holdings' Calaca power plant in southern Luzon. The two
companies signed a memorandum of understanding in July.
Mitsubishi Hitachi Power Systems, in partnership with Tokyo Electric Power
Co. Holdings, will also introduce such technology to a conventional power
plant in Pagbilao, another municipality in southern Luzon. The failure
detection system has already been tested at a plant in Japan.
The two companies estimate that a 1% improvement in efficiency can save
several million dollars annually at a conventional power plant with an
output of 1 million kilowatts.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
https://asia.nikkei.com/Business/Trends/Southeast-Asia-gets-smart-about-powe
r-plants
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Rethinking hydropower in Myanmar
Rethinking hydropower in Myanmar
Since Myanmar's phased transition to democracy began in 2010, the
resource-rich country of 53 million consumers has had one of Asia's fastest
growing economies.
Electricity demand has surged past available supplies by a factor of 15
percent annually and is expected to more than double by 2020. Rolling
brownouts are common and investor optimism, both foreign and domestic, is
fading.
Although often eclipsed by interest in the hydrocarbon and mining sectors,
Myanmar's hydrological resources are its most important natural resource.
Hydropower generates two thirds of Myanmar's modest 4.9 gigawatts of
installed capacity, a small slice of the country's 95GW of untapped
hydropower potential.
Not surprisingly, the Ministry of Electricity and Energy has turned to the
nation's free flowing rivers to address this widening electricity
supply-demand gap and fill the government's coffers through regional
electricity exports. At least 50 large (less than 30 megawatts) hydropower
plants with a combined capacity exceeding 40GW are slated for development.
The rivers that host these projects, and the ecosystems they inextricably
link, are also at the core of Myanmar's food and nutritional security.
Rivalling the production of the entire lower Mekong Basin, Myanmar's inland
fisheries yield an estimated 900,000 tonnes of fish and aquaculture annually
that the Food and Agriculture Organization recognises as the most important
protein source in the Myanmar diet by a factor of 10 to 1.
If developed as planned, the 50 large hydropower projects would permanently
segment watersheds, flatten the peaks and valleys of the flood pulse and
trap nutrient-rich sediment behind dams. The productivity of inland
fisheries would gradually erode, annually inundated floodplains would shrink
and the country's "rice bowl" - the Ayeyarwady Delta - would be denied the
fertile silt and water flows essential to sustaining yields.
The Myanmar government's hydropower development plans have therefore
inspired waves of opposition from project area and downstream communities,
civil society organisations and NGOs. Numerous large-scale projects planned
for upland ethnic areas are also frustrating efforts to secure a Nationwide
Ceasefire Agreement.
Reasonable and reliable electricity is a prerequisite to economic growth and
social development. But must it come at the expense of increased conflict or
Myanmar's age-old rice-fish agricultural systems and the lives, livelihoods
and deep cultural traditions it embodies?
The International Financial Corporation is leading efforts to answer this
question through a countrywide Strategic Environmental Assessment aimed at
helping policymakers, developers and investors improve sectoral planning.
The study represents a critical step to better understanding and mitigating
the environmental and social risks of widespread hydropower development.
However, its implementation will take time, and Myanmar needs power now.
Energy leapfrogging and the megatrend 'Ds'
Driven by the plummeting costs of mobile connectivity, Myanmar's mobile
phone subscriber base skyrocketed from 5.1 million users in January 2014 to
43 million users by April 2016 - that's nearly 1.4 million new users per
month. These numbers led analysts to predict that Myanmar would become "not
just a mobile-first environment, but a mobile-only market".
Much of today's modern power infrastructure, especially in Myanmar, is the
metaphorical equivalent of the operator-managed, landline call centres of
the 1950s. Large, centrally-located and dispatched generating assets push
power, typically in a single direction, across vast transmission and
distribution networks to end users.
A similar, smartphone-like disruption looms over the power sector. It has
often been summed up as the three megatrend "Ds": decentralisation
(generating power closer to where it is consumed), decarbonisation (reducing
the use of fossil fuels in favour of renewable) and digitization, or the
internet of energy (the fine-grained monitoring and control of electricity
flows to optimise transmission and distribution).
Globally, technological advancements driving down the costs of wind, solar
and mini-grids are spurring decentralisation and decarbonisation, and slowly
chipping away at the long-held monopoly of large fossil fuel facilities on
economies of scale. Hydropower is poised to play an important role in
accelerating these trends, particularly in monsoonal climates where solar
and water resources share an inverse and thus complementary relationship.
New material and design innovations are, for example, contributing to the
development of more cost-effective and modular hydropower turbines and
related cost-saving civil works innovations. Coupled with our improved
understanding of the costs of ecosystem damage, the economics of hydropower
are shifting, making smaller, utility-scale projects more economically
viable.
How can distributed hydropower help Myanmar?
Not unlike mobile telecoms infrastructure, the development of decentralised
hydropower resources offers Myanmar an accelerated and more equitable
pathway to unlocking the benefits of reliable and affordable electricity.
Integrated networks of distributed hydropower projects have less impact, are
more socially acceptable and rapidly deployable at scale, yet are capable of
providing utility-scale power to address Myanmar's urgent electricity supply
shortfalls.
Distributed hydropower projects can also incorporate water supply and
irrigation systems to amplify the positive effects of improved energy access
with dual-use infrastructure that serves other social and economic purposes.
A distributed approach to hydropower development may also help ease tensions
between the government and ethnic groups by ensuring the benefits of
electricity access and economic development are more quickly extended to
isolated upland areas through hybrid mini-grids. Once integrated with the
national grid, these mini-grids could be leveraged to provide high-value
grid services, creating the technical space to enhance the resilience of and
decarbonise Myanmar's national grid with large-scale intermittent
renewables.
Distributed hydropower is by no means the only solution to Myanmar's energy
needs. Some large hydropower projects will be developed, and should be when
the environmental and social costs of projects are minimal and the affected
communities agree.
As stewards of the planet's resources, however, we have a moral obligation
to, and an existential interest in, promoting low carbon development
pathways that minimise the impact on the ecosystem, especially when their
presence disproportionately benefits society's most vulnerable.
In this regard, policymakers, developers and investors would be wise to
consider distributed hydropower as an accelerated and utility-enhancing
solution to help meet Myanmar's pressing electricity, water and sanitation
needs.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
https://www.mmtimes.com/news/rethinking-hydropower-myanmar.html
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Since Myanmar's phased transition to democracy began in 2010, the
resource-rich country of 53 million consumers has had one of Asia's fastest
growing economies.
Electricity demand has surged past available supplies by a factor of 15
percent annually and is expected to more than double by 2020. Rolling
brownouts are common and investor optimism, both foreign and domestic, is
fading.
Although often eclipsed by interest in the hydrocarbon and mining sectors,
Myanmar's hydrological resources are its most important natural resource.
Hydropower generates two thirds of Myanmar's modest 4.9 gigawatts of
installed capacity, a small slice of the country's 95GW of untapped
hydropower potential.
Not surprisingly, the Ministry of Electricity and Energy has turned to the
nation's free flowing rivers to address this widening electricity
supply-demand gap and fill the government's coffers through regional
electricity exports. At least 50 large (less than 30 megawatts) hydropower
plants with a combined capacity exceeding 40GW are slated for development.
The rivers that host these projects, and the ecosystems they inextricably
link, are also at the core of Myanmar's food and nutritional security.
Rivalling the production of the entire lower Mekong Basin, Myanmar's inland
fisheries yield an estimated 900,000 tonnes of fish and aquaculture annually
that the Food and Agriculture Organization recognises as the most important
protein source in the Myanmar diet by a factor of 10 to 1.
If developed as planned, the 50 large hydropower projects would permanently
segment watersheds, flatten the peaks and valleys of the flood pulse and
trap nutrient-rich sediment behind dams. The productivity of inland
fisheries would gradually erode, annually inundated floodplains would shrink
and the country's "rice bowl" - the Ayeyarwady Delta - would be denied the
fertile silt and water flows essential to sustaining yields.
The Myanmar government's hydropower development plans have therefore
inspired waves of opposition from project area and downstream communities,
civil society organisations and NGOs. Numerous large-scale projects planned
for upland ethnic areas are also frustrating efforts to secure a Nationwide
Ceasefire Agreement.
Reasonable and reliable electricity is a prerequisite to economic growth and
social development. But must it come at the expense of increased conflict or
Myanmar's age-old rice-fish agricultural systems and the lives, livelihoods
and deep cultural traditions it embodies?
The International Financial Corporation is leading efforts to answer this
question through a countrywide Strategic Environmental Assessment aimed at
helping policymakers, developers and investors improve sectoral planning.
The study represents a critical step to better understanding and mitigating
the environmental and social risks of widespread hydropower development.
However, its implementation will take time, and Myanmar needs power now.
Energy leapfrogging and the megatrend 'Ds'
Driven by the plummeting costs of mobile connectivity, Myanmar's mobile
phone subscriber base skyrocketed from 5.1 million users in January 2014 to
43 million users by April 2016 - that's nearly 1.4 million new users per
month. These numbers led analysts to predict that Myanmar would become "not
just a mobile-first environment, but a mobile-only market".
Much of today's modern power infrastructure, especially in Myanmar, is the
metaphorical equivalent of the operator-managed, landline call centres of
the 1950s. Large, centrally-located and dispatched generating assets push
power, typically in a single direction, across vast transmission and
distribution networks to end users.
A similar, smartphone-like disruption looms over the power sector. It has
often been summed up as the three megatrend "Ds": decentralisation
(generating power closer to where it is consumed), decarbonisation (reducing
the use of fossil fuels in favour of renewable) and digitization, or the
internet of energy (the fine-grained monitoring and control of electricity
flows to optimise transmission and distribution).
Globally, technological advancements driving down the costs of wind, solar
and mini-grids are spurring decentralisation and decarbonisation, and slowly
chipping away at the long-held monopoly of large fossil fuel facilities on
economies of scale. Hydropower is poised to play an important role in
accelerating these trends, particularly in monsoonal climates where solar
and water resources share an inverse and thus complementary relationship.
New material and design innovations are, for example, contributing to the
development of more cost-effective and modular hydropower turbines and
related cost-saving civil works innovations. Coupled with our improved
understanding of the costs of ecosystem damage, the economics of hydropower
are shifting, making smaller, utility-scale projects more economically
viable.
How can distributed hydropower help Myanmar?
Not unlike mobile telecoms infrastructure, the development of decentralised
hydropower resources offers Myanmar an accelerated and more equitable
pathway to unlocking the benefits of reliable and affordable electricity.
Integrated networks of distributed hydropower projects have less impact, are
more socially acceptable and rapidly deployable at scale, yet are capable of
providing utility-scale power to address Myanmar's urgent electricity supply
shortfalls.
Distributed hydropower projects can also incorporate water supply and
irrigation systems to amplify the positive effects of improved energy access
with dual-use infrastructure that serves other social and economic purposes.
A distributed approach to hydropower development may also help ease tensions
between the government and ethnic groups by ensuring the benefits of
electricity access and economic development are more quickly extended to
isolated upland areas through hybrid mini-grids. Once integrated with the
national grid, these mini-grids could be leveraged to provide high-value
grid services, creating the technical space to enhance the resilience of and
decarbonise Myanmar's national grid with large-scale intermittent
renewables.
Distributed hydropower is by no means the only solution to Myanmar's energy
needs. Some large hydropower projects will be developed, and should be when
the environmental and social costs of projects are minimal and the affected
communities agree.
As stewards of the planet's resources, however, we have a moral obligation
to, and an existential interest in, promoting low carbon development
pathways that minimise the impact on the ecosystem, especially when their
presence disproportionately benefits society's most vulnerable.
In this regard, policymakers, developers and investors would be wise to
consider distributed hydropower as an accelerated and utility-enhancing
solution to help meet Myanmar's pressing electricity, water and sanitation
needs.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
https://www.mmtimes.com/news/rethinking-hydropower-myanmar.html
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Thailand: Banpu targets 300 MW with new downstream unit
Thailand: Banpu targets 300 MW with new downstream unit
The Bangkok-based mining firm and energy producer describes newly
established group unit Banpu Infinergy as a "one-stop provider of total
solar energy solutions," ranging from consultation and system design to
installation and maintenance. It will initially work with industrial and
private customers, including factories, hotels, schools and petrol stations,
according to an online statement. The group did not specify whether Banpu
Infinergy will limit its focus to Thailand, or if it plans to seek
opportunities in other markets.
"We have more than 30 years of experience and expertise in the coal and
power businesses, but we are also eager to develop renewable energy," said
Somruedee Chaimongkol, director of Banpu Infinergy and CEO of its parent.
"The renewable energy trend in Thailand will become clearer as it is in
other countries, such as Japan, China, Australia and the U.S., where solar
energy is widely utilized."
In the first stage of a phased rollout, Banpu Infinergy will focus on
supplying and installing rooftop PV systems, as well as solar-powered street
lights and unspecified "accessories." It said that it plans to offer three
different sales packages, including one that includes "zero investment" PV
system installation and free maintenance over periods of 20 to 25 years, but
its announcement was light on details.
All of the new company's PV systems will be monitored from a centralized
control center. However, Banpu did not elaborate on its plans or how it aims
to achieve its goals, beyond saying that it also plans to eventually expand
its focus to energy management platforms and storage systems.
While Banpu's new Banpu Infinergy unit clearly marks the Bangkok-listed
miner's shift into solar project development, it has already invested in
several PV projects. In April 2016, it announced plans to invest $170
million in seven solar installations throughout Japan, totalling 54 MW. All
of the projects will be completed by 2018. And in May 2016, Banpu revealed
plans to invest $93 million in four unspecified PV projects in China.
"[Banpu Infinergy is] considered a step forward from our solar farm plants
in China and Japan," said Chaimongkol.
The Bangkok-listed mining and energy group posted a net profit of $107
million in the first half of this year. It recorded a net profit of $47
million in 2016.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
https://www.pv-magazine.com/2017/08/29/banpu-targets-300-mw-with-new-downstr
eam-unit/
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
The Bangkok-based mining firm and energy producer describes newly
established group unit Banpu Infinergy as a "one-stop provider of total
solar energy solutions," ranging from consultation and system design to
installation and maintenance. It will initially work with industrial and
private customers, including factories, hotels, schools and petrol stations,
according to an online statement. The group did not specify whether Banpu
Infinergy will limit its focus to Thailand, or if it plans to seek
opportunities in other markets.
"We have more than 30 years of experience and expertise in the coal and
power businesses, but we are also eager to develop renewable energy," said
Somruedee Chaimongkol, director of Banpu Infinergy and CEO of its parent.
"The renewable energy trend in Thailand will become clearer as it is in
other countries, such as Japan, China, Australia and the U.S., where solar
energy is widely utilized."
In the first stage of a phased rollout, Banpu Infinergy will focus on
supplying and installing rooftop PV systems, as well as solar-powered street
lights and unspecified "accessories." It said that it plans to offer three
different sales packages, including one that includes "zero investment" PV
system installation and free maintenance over periods of 20 to 25 years, but
its announcement was light on details.
All of the new company's PV systems will be monitored from a centralized
control center. However, Banpu did not elaborate on its plans or how it aims
to achieve its goals, beyond saying that it also plans to eventually expand
its focus to energy management platforms and storage systems.
While Banpu's new Banpu Infinergy unit clearly marks the Bangkok-listed
miner's shift into solar project development, it has already invested in
several PV projects. In April 2016, it announced plans to invest $170
million in seven solar installations throughout Japan, totalling 54 MW. All
of the projects will be completed by 2018. And in May 2016, Banpu revealed
plans to invest $93 million in four unspecified PV projects in China.
"[Banpu Infinergy is] considered a step forward from our solar farm plants
in China and Japan," said Chaimongkol.
The Bangkok-listed mining and energy group posted a net profit of $107
million in the first half of this year. It recorded a net profit of $47
million in 2016.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
https://www.pv-magazine.com/2017/08/29/banpu-targets-300-mw-with-new-downstr
eam-unit/
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Philippines signs executive order to streamline approval of energy projects
Philippines signs executive order to streamline approval of energy projects
On June 28 President Rodrigo Duterte signed an executive order establishing
the Energy Investment Coordinating Council (EICC), a new body tasked with
simplifying and streamlining the granting of licences and permits for
large-scale investments.
The EICC aims to reduce approval times for major projects to 30 days, a
sharp decrease from the current average of more than 3.5 years. The order
also stipulates that if no decision on an application is made within 30
days, permits for the project must be automatically approved within five
days.
The EICC will specifically deal with projects deemed to be of national
significance. In order to qualify for the fast-tracked process, proposals
must have a minimum capital investment of P3.5bn ($68.1m), demonstrate a
significant contribution to the economy, and contain complex technical
designs and processes.
New projects to meet growing electricity demand
The government hopes the reforms will spur investor confidence and expand
the country's capacity to meet growing electricity demand.
There is currently 7300 MW of power generation capacity either under way or
approved for construction in the Philippines, according to BMI Research,
with coal-fired plants leading the way as the major driver of energy growth.
With an electricity consumption growth rate of 10% last year, and further
demand expected in the coming decade, the country is estimated to need
12,300 MW of additional generation capacity by 2030, according to the
Department of Energy (DoE).
Temperature increases and efforts to combat the effects of the El Niño
weather pattern are thought to be behind more robust demand growth, along
with expansion of the middle class, which has seen more people move to urban
centres.
New power projects are set to more than offset the growth in demand,
however, as total installed capacity in the country grew by 14.2% in 2016,
from 18,765 MW to 21,423 MW. Grid capacity in the Autonomous Region in
Muslim Mindanao, meanwhile, grew by 31% over the same period – the fastest
expansion of the country's three grids.
The DoE expects the executive order to further support the rollout of new
power projects, with more than 5000 MW of committed projects expected to
come on-line by 2025.
Coal-fired plants to account for bulk of increased capacity
While the Philippines has immense renewable energy potential, the low cost
of coal has led it to dominate present and future energy developments in the
country.
Around 80% of the 7300 MW currently under approval or approved for
construction will come from coal sources, which should see the fossil fuel
reinforce its leading position in the country's energy mix in the years to
come. According to the most recent figures from the DoE, coal represents
47.7% of the Philippines' power generation, followed by renewables (24.2%),
natural gas (21.9%) and oil (6.2%).
Despite environmental concerns, coal-based plants are seen by the
authorities as a cost-effective, as well as more dependable, means of power
generation in the Philippines, and are therefore viewed as a key tool in
alleviating power outages and strengthening energy security in certain parts
of the country.
In Mindanao, for example, which has already seen rapid grid expansion,
coal-fired capacity is on track to double over the next four years, with the
construction of a number of new projects to generate more than 1000 MW of
additional capacity.
However, the use of coal is set to result in a considerable increase in
imports of the commodity, as new projects start to outpace the country's
coal production capacity.
The Philippines imported 20.8m tonnes of coal last year, a 47.8% increase on
2015, with this figure expected to rise by an additional 2m tonnes per year
until 2020. In response to this demand, the DoE announced a new round of
contracts for oil and coal prospecting areas in July.
New solar farm to boost renewable energy generation
Despite the proliferation of coal-fired power plants, there has been a
parallel effort to expand the Philippines' renewable energy capacity.
Work on the country's largest solar power project – the 150-MW Solar
Philippines-run photovoltaic park in the country's Tarlac province – started
in March. The $195m project will see the installation of 450,000 solar
panels and an energy storage facility, making it one of the largest solar
farms in South-east Asia, and is expected to fulfil the energy needs of the
entire province.
Importantly, according to Leandro Leviste, president of Solar Philippines,
the project represents the first in the country to be developed at a price
point lower than a coal-fired plant.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.oxfordbusinessgroup.com/news/philippines-signs-executive-order-st
reamline-approval-energy-projects
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
On June 28 President Rodrigo Duterte signed an executive order establishing
the Energy Investment Coordinating Council (EICC), a new body tasked with
simplifying and streamlining the granting of licences and permits for
large-scale investments.
The EICC aims to reduce approval times for major projects to 30 days, a
sharp decrease from the current average of more than 3.5 years. The order
also stipulates that if no decision on an application is made within 30
days, permits for the project must be automatically approved within five
days.
The EICC will specifically deal with projects deemed to be of national
significance. In order to qualify for the fast-tracked process, proposals
must have a minimum capital investment of P3.5bn ($68.1m), demonstrate a
significant contribution to the economy, and contain complex technical
designs and processes.
New projects to meet growing electricity demand
The government hopes the reforms will spur investor confidence and expand
the country's capacity to meet growing electricity demand.
There is currently 7300 MW of power generation capacity either under way or
approved for construction in the Philippines, according to BMI Research,
with coal-fired plants leading the way as the major driver of energy growth.
With an electricity consumption growth rate of 10% last year, and further
demand expected in the coming decade, the country is estimated to need
12,300 MW of additional generation capacity by 2030, according to the
Department of Energy (DoE).
Temperature increases and efforts to combat the effects of the El Niño
weather pattern are thought to be behind more robust demand growth, along
with expansion of the middle class, which has seen more people move to urban
centres.
New power projects are set to more than offset the growth in demand,
however, as total installed capacity in the country grew by 14.2% in 2016,
from 18,765 MW to 21,423 MW. Grid capacity in the Autonomous Region in
Muslim Mindanao, meanwhile, grew by 31% over the same period – the fastest
expansion of the country's three grids.
The DoE expects the executive order to further support the rollout of new
power projects, with more than 5000 MW of committed projects expected to
come on-line by 2025.
Coal-fired plants to account for bulk of increased capacity
While the Philippines has immense renewable energy potential, the low cost
of coal has led it to dominate present and future energy developments in the
country.
Around 80% of the 7300 MW currently under approval or approved for
construction will come from coal sources, which should see the fossil fuel
reinforce its leading position in the country's energy mix in the years to
come. According to the most recent figures from the DoE, coal represents
47.7% of the Philippines' power generation, followed by renewables (24.2%),
natural gas (21.9%) and oil (6.2%).
Despite environmental concerns, coal-based plants are seen by the
authorities as a cost-effective, as well as more dependable, means of power
generation in the Philippines, and are therefore viewed as a key tool in
alleviating power outages and strengthening energy security in certain parts
of the country.
In Mindanao, for example, which has already seen rapid grid expansion,
coal-fired capacity is on track to double over the next four years, with the
construction of a number of new projects to generate more than 1000 MW of
additional capacity.
However, the use of coal is set to result in a considerable increase in
imports of the commodity, as new projects start to outpace the country's
coal production capacity.
The Philippines imported 20.8m tonnes of coal last year, a 47.8% increase on
2015, with this figure expected to rise by an additional 2m tonnes per year
until 2020. In response to this demand, the DoE announced a new round of
contracts for oil and coal prospecting areas in July.
New solar farm to boost renewable energy generation
Despite the proliferation of coal-fired power plants, there has been a
parallel effort to expand the Philippines' renewable energy capacity.
Work on the country's largest solar power project – the 150-MW Solar
Philippines-run photovoltaic park in the country's Tarlac province – started
in March. The $195m project will see the installation of 450,000 solar
panels and an energy storage facility, making it one of the largest solar
farms in South-east Asia, and is expected to fulfil the energy needs of the
entire province.
Importantly, according to Leandro Leviste, president of Solar Philippines,
the project represents the first in the country to be developed at a price
point lower than a coal-fired plant.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.oxfordbusinessgroup.com/news/philippines-signs-executive-order-st
reamline-approval-energy-projects
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Exxon Mobil Vietnam gas project could start in November
Exxon Mobil Vietnam gas project could start in November
Exxon Mobil Corp's Blue Whale gas project, Vietnam's biggest, could start in
November, Vietnam Television (VTV) reported on Tuesday.
The Blue Whale field has an estimated 150 billion cubic meters of reserves.
Prime Minister Nguyen Xuan Phuc told Exxon Mobil on Tuesday he hoped to have
the project starting officially at an Asia-Pacific Economic Cooperation
summit in November when U.S. President Donald Trump and U.S. government
officials are expected to attend, state-run VTV reported.
Vietnam is trying to switch to cleaner energy from coal-fired power plants.
The country is also planning solar and wind power plants.
Jon Gibbs, Exxon Mobil's vice president in Asia Pacific and Middle East,
said the U.S. company aimed to produce the first gas for Vietnamese power
plants in 2023, VTV reported.
PetroVietnam, Exxon Mobil's Vietnamese partner, has said the project would
contribute nearly $20 billion to the state budget.
Exxon Mobil established an exploration and exploitation unit in Vietnam that
distributes lubricant and petrochemical products, a Vietnamese government
news website said.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://e.vnexpress.net/news/business/exxon-mobil-vietnam-gas-project-could-s
tart-in-november-state-tv-3634543.html
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Exxon Mobil Corp's Blue Whale gas project, Vietnam's biggest, could start in
November, Vietnam Television (VTV) reported on Tuesday.
The Blue Whale field has an estimated 150 billion cubic meters of reserves.
Prime Minister Nguyen Xuan Phuc told Exxon Mobil on Tuesday he hoped to have
the project starting officially at an Asia-Pacific Economic Cooperation
summit in November when U.S. President Donald Trump and U.S. government
officials are expected to attend, state-run VTV reported.
Vietnam is trying to switch to cleaner energy from coal-fired power plants.
The country is also planning solar and wind power plants.
Jon Gibbs, Exxon Mobil's vice president in Asia Pacific and Middle East,
said the U.S. company aimed to produce the first gas for Vietnamese power
plants in 2023, VTV reported.
PetroVietnam, Exxon Mobil's Vietnamese partner, has said the project would
contribute nearly $20 billion to the state budget.
Exxon Mobil established an exploration and exploitation unit in Vietnam that
distributes lubricant and petrochemical products, a Vietnamese government
news website said.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://e.vnexpress.net/news/business/exxon-mobil-vietnam-gas-project-could-s
tart-in-november-state-tv-3634543.html
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Philippines: DOE gets go-signal on P50-M budget for nuclear study
Philippines: DOE gets go-signal on P50-M budget for nuclear study
The Department of Energy (DOE) has secured the go-signal of Senate Committee
on Finance for P50 million allocation on its planned study that shall cement
the country's nuclear power program.
In a Senate hearing, the department explained its pressing need for said
budget so it could advance steps onward to the Philippines next plunge into
nuclear power development.
Senator Sherwin T. Gatchalian, who chairs the Senate Committee on Energy,
said they had seen the necessity of them giving approval of the fund
allocation; while emphasizing on expectations that the study outcome must be
comprehensive.
He noted the "system redundancies" that many countries with nuclear program
had resorted to following the 2011 Fukushima Dai-ichi nuclear tragedy - that
in turn had bloated capital spending for new nuclear builds; the requirement
to develop human skills and expertise on nuclear management and power
operations; and strengthening of both the policy and regulatory frameworks
underpinning a nuclear program, among others.
After a botched nuclear power program back in the 1980s, the Philippines
will effectively be re-taking 'baby steps' on building up human knowledge
and expertise on the development, risk management and operation of such
technology that could advance goals of energy security.
In a recent interview in Ljubljana, Slovenia relating to the operation of
its close to 30-year Krśko nuclear power facility, one prescriptive tone set
had been that "relying solely on the knowledge and competence of foreign
experts could come as a 'dangerous play' for countries intending to take
their foray into nuclear power in their energy mix agenda."
Dr Andrej Sistrar, director of Nuclear Safety Administration of Slovenia's
Ministry of Infrastructure, noted that engaging foreign experts for a
country still developing the prowess and mastery of its people on nuclear
power program could help, but it does not serve as the ultimate solution.
Priority in nuclear power program - more than addressing external factors on
safety and security issues - would be on building up human resource on
knowledge and technical expertise on nuclear technologies, he emphasized.
"It's difficult giving specific advice to countries intending to have
nuclear power program. But one major requirement and key would be on
ensuring that you have people with extensive knowledge and expertise, that
will be crucial on management of nuclear operations," Sistrar said.
He opined that having experts could be a starting point for a country, but
it would not be a sustainable paradigm, so training and capacity enhancement
of locally-based people would be paramount.
Sistrar cited the experience of United Arab Emirates (UAE) wherein they
imported human resource on their nuclear power facilities' operations, but
in the end, they have encountered some challenges. That then made the
country realized that it needed to produce its own set of capable people on
nuclear engineering and other facets of operations.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://business.mb.com.ph/2017/08/29/doe-gets-go-signal-on-p50-m-budget-for-
nuclear-study/
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
The Department of Energy (DOE) has secured the go-signal of Senate Committee
on Finance for P50 million allocation on its planned study that shall cement
the country's nuclear power program.
In a Senate hearing, the department explained its pressing need for said
budget so it could advance steps onward to the Philippines next plunge into
nuclear power development.
Senator Sherwin T. Gatchalian, who chairs the Senate Committee on Energy,
said they had seen the necessity of them giving approval of the fund
allocation; while emphasizing on expectations that the study outcome must be
comprehensive.
He noted the "system redundancies" that many countries with nuclear program
had resorted to following the 2011 Fukushima Dai-ichi nuclear tragedy - that
in turn had bloated capital spending for new nuclear builds; the requirement
to develop human skills and expertise on nuclear management and power
operations; and strengthening of both the policy and regulatory frameworks
underpinning a nuclear program, among others.
After a botched nuclear power program back in the 1980s, the Philippines
will effectively be re-taking 'baby steps' on building up human knowledge
and expertise on the development, risk management and operation of such
technology that could advance goals of energy security.
In a recent interview in Ljubljana, Slovenia relating to the operation of
its close to 30-year Krśko nuclear power facility, one prescriptive tone set
had been that "relying solely on the knowledge and competence of foreign
experts could come as a 'dangerous play' for countries intending to take
their foray into nuclear power in their energy mix agenda."
Dr Andrej Sistrar, director of Nuclear Safety Administration of Slovenia's
Ministry of Infrastructure, noted that engaging foreign experts for a
country still developing the prowess and mastery of its people on nuclear
power program could help, but it does not serve as the ultimate solution.
Priority in nuclear power program - more than addressing external factors on
safety and security issues - would be on building up human resource on
knowledge and technical expertise on nuclear technologies, he emphasized.
"It's difficult giving specific advice to countries intending to have
nuclear power program. But one major requirement and key would be on
ensuring that you have people with extensive knowledge and expertise, that
will be crucial on management of nuclear operations," Sistrar said.
He opined that having experts could be a starting point for a country, but
it would not be a sustainable paradigm, so training and capacity enhancement
of locally-based people would be paramount.
Sistrar cited the experience of United Arab Emirates (UAE) wherein they
imported human resource on their nuclear power facilities' operations, but
in the end, they have encountered some challenges. That then made the
country realized that it needed to produce its own set of capable people on
nuclear engineering and other facets of operations.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://business.mb.com.ph/2017/08/29/doe-gets-go-signal-on-p50-m-budget-for-
nuclear-study/
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Dam Project in Northern Myanmar Will Destroy Remote River Valley, Environmentalist Group Warns
Dam Project in Northern Myanmar Will Destroy Remote River Valley,
Environmentalist Group Warns
A series of four dams set to be built in a remote corner of eastern Kachin
State, on the upper waters of the Irrawaddy River, will irreversibly damage
an ecologically sensitive river valley, says a report from the Kachin
Development Network Group (KDNG), released on Tuesday.
The cascading dams, which planners estimate will generate as much as 1,200
megawatts of electricity annually, are set to be built by a consortium led
by the Chinese firm YEIG International Development Company Ltd. (YEIG), on
the Ngo Chang Hka River, a tributary of the N'Mai River, one of the two
rivers in Kachin State that join to form the Irrawaddy.
The KDNG, a Myitkyina-based group that released the report entitled "Saving
the Ngo Chang Hka Valley," says that the estimated 4,500 people living in
the Ngo Chang Hka valley who will be affected by the project have been left
in the dark about the specific impacts of the dam project, including the
size and location of the areas that will be flooded. Many of the local
villagers who live in the valley farm along the river, where the soil is
richest. The KDNG warns that the dam's flooding of local farmland will cause
a massive disruption to the local people's way of life.
According to the KDNG, one of the few organizations with a history of
working with communities in the difficult to access valley, the project is
very unpopular with the local population that is largely comprised of people
from the Lisu, Lhao Vo, Lachik and Ngo Chang Hka ethnic Kachin subgroups.
"We refuse to let our ancestral homelands and natural resources be
destroyed," said Zawng Lum, a valley resident quoted in the statement
accompanying the report's release.
A 2014 report produced by Japan's development agency and cited by the KDNG
indicates that 50 percent of the power generated from the planned dams is
set to be exported across the border, despite the fact that neighboring
Yunnan already has an energy surplus and Chinese electricity producers are
seeking to export this surplus to Myanmar.
Kachin State is already home to several dams that are operational, including
a dam built on the Chipwe River that was supposed to be used to power the
construction of the stalled Myitsone dam project. According to a state
official recently interviewed in local media, this dam is running at
one-third capacity because local transmission lines have not been upgraded
to carry the extra capacity.
According to the KDNG, the impact of this dam on the Chipwe River, which was
completed in 2013, has been devastating and provides an important lesson for
those in the Ngo Chang Hka valley. "Valuable farmlands were destroyed
without proper compensation, and villagers downstream now suffer from
unpredictable releases of muddy, polluted water from the dam that destroy
riverside crops, kill fish, and make bathing dangerous," reads the report.
The KDNG, which strongly opposed the Myitsone dam and the related six dams
that were slated to be built as part of that project on the N'Mai and the
Mali Hka rivers, maintains that Myanmar needs to undergo a re-think about
its energy planning, in particular what the group sees as a focus by the
government to prioritize an energy export model of development at the
expense of local needs.
"Addressing domestic energy needs is a secondary priority, and relies on the
slow and expensive expansion of a centralized grid that mainly serves cities
and towns in central [Myanmar]. Faster and cheaper 'off-grid' alternatives,
involving local production and distribution of electricity, are not being
prioritized," says the KDNG.
The KDNG, which was formed during the military era by Kachin activists
working underground who were opposed to what they perceived as the former
State Peace and Development Council (SPDC) regime's mismanagement and theft
of Kachin State's natural resources, has in recent years been at the
forefront of a public movement in Kachin State that seeks to gain local
control and management of the state's natural wealth. In February, the KDNG
conducted a protest in Myitkyina against the World Bank's private sector
lending arm the International Finance Corporation (IFC), over concerns that
the Washington-based group was pushing the development of Myanmar's
hydropower sector in a way that was counter to public interest.
YEIG, the Yunnan-based firm leading the valley dam plan, will have an 83
percent stake in the project, according to the KDNG. The firm is partnered
with Myanmar's central government, which will have a 15 percent stake, and
IGE, a company controlled by the sons of the late SPDC-era industry minister
Aung Thaung, will hold the remaining 2 percent.
The first dam on the Ngo Chang Hka will be built at Laung Din in Tsawlaw
Township, while the other three dams will be built in Chipwi Township at
Tongxinqiao, Khan Kang and Gaw Lang. The KDNG notes that on the other side
of the border, Chinese officials scrapped plans to build dams in a
mountainous part of Yunnan on the Nu River because of a fault line and
potential earthquakes that could be triggered by the weight of dam
reservoirs. According to the KDNG's research, the Gaw Lang dam is some 30 km
away from the same fault line that gave Chinese officials cause for concern.
Another factor that could significantly complicate the project's development
is that the Ngo Chang Hka River flows close to parts of Kachin State that
continue to be the location of clashes between the military and the Kachin
Independence Organization (KIO) in a conflict that has been ongoing since a
ceasefire failed in June 2011. The valley is in an area officially known as
Kachin State Special Region 1, a remote corner of Myanmar that has been for
many years the fiefdom of Zakhung Ting Ying, the longtime leader of the New
Democratic Army Kachin (NDAK), a ceasefire group that officially transformed
into a border guard force in 2009.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
https://www.irrawaddy.com/news/burma/dam-project-in-northern-myanmar-will-de
stroy-remote-river-valley-environmentalist-group-warns.html
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Environmentalist Group Warns
A series of four dams set to be built in a remote corner of eastern Kachin
State, on the upper waters of the Irrawaddy River, will irreversibly damage
an ecologically sensitive river valley, says a report from the Kachin
Development Network Group (KDNG), released on Tuesday.
The cascading dams, which planners estimate will generate as much as 1,200
megawatts of electricity annually, are set to be built by a consortium led
by the Chinese firm YEIG International Development Company Ltd. (YEIG), on
the Ngo Chang Hka River, a tributary of the N'Mai River, one of the two
rivers in Kachin State that join to form the Irrawaddy.
The KDNG, a Myitkyina-based group that released the report entitled "Saving
the Ngo Chang Hka Valley," says that the estimated 4,500 people living in
the Ngo Chang Hka valley who will be affected by the project have been left
in the dark about the specific impacts of the dam project, including the
size and location of the areas that will be flooded. Many of the local
villagers who live in the valley farm along the river, where the soil is
richest. The KDNG warns that the dam's flooding of local farmland will cause
a massive disruption to the local people's way of life.
According to the KDNG, one of the few organizations with a history of
working with communities in the difficult to access valley, the project is
very unpopular with the local population that is largely comprised of people
from the Lisu, Lhao Vo, Lachik and Ngo Chang Hka ethnic Kachin subgroups.
"We refuse to let our ancestral homelands and natural resources be
destroyed," said Zawng Lum, a valley resident quoted in the statement
accompanying the report's release.
A 2014 report produced by Japan's development agency and cited by the KDNG
indicates that 50 percent of the power generated from the planned dams is
set to be exported across the border, despite the fact that neighboring
Yunnan already has an energy surplus and Chinese electricity producers are
seeking to export this surplus to Myanmar.
Kachin State is already home to several dams that are operational, including
a dam built on the Chipwe River that was supposed to be used to power the
construction of the stalled Myitsone dam project. According to a state
official recently interviewed in local media, this dam is running at
one-third capacity because local transmission lines have not been upgraded
to carry the extra capacity.
According to the KDNG, the impact of this dam on the Chipwe River, which was
completed in 2013, has been devastating and provides an important lesson for
those in the Ngo Chang Hka valley. "Valuable farmlands were destroyed
without proper compensation, and villagers downstream now suffer from
unpredictable releases of muddy, polluted water from the dam that destroy
riverside crops, kill fish, and make bathing dangerous," reads the report.
The KDNG, which strongly opposed the Myitsone dam and the related six dams
that were slated to be built as part of that project on the N'Mai and the
Mali Hka rivers, maintains that Myanmar needs to undergo a re-think about
its energy planning, in particular what the group sees as a focus by the
government to prioritize an energy export model of development at the
expense of local needs.
"Addressing domestic energy needs is a secondary priority, and relies on the
slow and expensive expansion of a centralized grid that mainly serves cities
and towns in central [Myanmar]. Faster and cheaper 'off-grid' alternatives,
involving local production and distribution of electricity, are not being
prioritized," says the KDNG.
The KDNG, which was formed during the military era by Kachin activists
working underground who were opposed to what they perceived as the former
State Peace and Development Council (SPDC) regime's mismanagement and theft
of Kachin State's natural resources, has in recent years been at the
forefront of a public movement in Kachin State that seeks to gain local
control and management of the state's natural wealth. In February, the KDNG
conducted a protest in Myitkyina against the World Bank's private sector
lending arm the International Finance Corporation (IFC), over concerns that
the Washington-based group was pushing the development of Myanmar's
hydropower sector in a way that was counter to public interest.
YEIG, the Yunnan-based firm leading the valley dam plan, will have an 83
percent stake in the project, according to the KDNG. The firm is partnered
with Myanmar's central government, which will have a 15 percent stake, and
IGE, a company controlled by the sons of the late SPDC-era industry minister
Aung Thaung, will hold the remaining 2 percent.
The first dam on the Ngo Chang Hka will be built at Laung Din in Tsawlaw
Township, while the other three dams will be built in Chipwi Township at
Tongxinqiao, Khan Kang and Gaw Lang. The KDNG notes that on the other side
of the border, Chinese officials scrapped plans to build dams in a
mountainous part of Yunnan on the Nu River because of a fault line and
potential earthquakes that could be triggered by the weight of dam
reservoirs. According to the KDNG's research, the Gaw Lang dam is some 30 km
away from the same fault line that gave Chinese officials cause for concern.
Another factor that could significantly complicate the project's development
is that the Ngo Chang Hka River flows close to parts of Kachin State that
continue to be the location of clashes between the military and the Kachin
Independence Organization (KIO) in a conflict that has been ongoing since a
ceasefire failed in June 2011. The valley is in an area officially known as
Kachin State Special Region 1, a remote corner of Myanmar that has been for
many years the fiefdom of Zakhung Ting Ying, the longtime leader of the New
Democratic Army Kachin (NDAK), a ceasefire group that officially transformed
into a border guard force in 2009.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
https://www.irrawaddy.com/news/burma/dam-project-in-northern-myanmar-will-de
stroy-remote-river-valley-environmentalist-group-warns.html
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
How Vietnam Can Launch a Bankable Solar Power Purchase Agreement
How Vietnam Can Launch a Bankable Solar Power Purchase Agreement
Following the issuance of the Prime Minister's Decision No. 11/2017/QD-TTg
("Decision 11") on the development of solar power in April 2017, which we
reported in "Vietnam Goes Green with New Guidance on Solar Power Projects",
the Ministry of Industry and Trade ("MOIT") has proposed a draft circular
that, once issued, will guide the implementation of Decision 11. The draft
circular includes a power purchase agreement (PPA) standard form that,
pursuant to Decision 11, will be mandatory for the sale of solar power to
the Vietnamese government-owned single purchaser - Electricity of Vietnam
(EVN). The draft PPA falls short of expectations since it heavily resembles
the one used for wind independent power projects (IPPs), which is generally
viewed as appropriate for only very small projects. The viability of the PPA
standard form is critical to a well-functioning regulatory framework for the
burgeoning Vietnamese solar energy sector. Investors and other stakeholders,
such as international financiers, will likely expect a significant number of
changes to the final form of the PPA to make solar transactions in Vietnam
bankable. In this legal update, we will discuss concerns with the standard
form PPA and offer some recommendations for positive revisions.
Standard PPA may not be suitable for large power projects
While the standard PPA may be appropriate for smaller scale solar power
projects, a more detailed PPA is more appropriate for larger projects. As a
significant amount of capital investment is required for larger projects,
sponsors and lenders would expect the PPA to specify compensation procedures
applicable in a range of situations, including when a seller is no longer
able to generate power due to a political force majeure event. A more
detailed, long form PPA should be introduced, or the Government should
explicitly allow a negotiated form of PPA be used for large-scale projects.
As a matter of comparison in the region, similar short form PPAs in
Thailand's Very Small Power Producer Program only apply to power projects
that do not exceed 10 megawatt.
Significant gap between standard form PPA and international market practice
There are numerous issues that need to be addressed so as to align the
standard PPA form with international market practice. For instance, the
draft requires changes to the commercial operations date to be announced six
to 12 months in advance of the scheduled date. However, this approach may
not be workable in practice as delays are often unforeseeable. It is common
practice for scheduled commercial operation dates to be extended after the
plant's construction has already been delayed if triggered by factors beyond
the seller's control.
Additionally, a seller's creditor should be notified of defaults. Lenders
would typically be given "step-in rights" after a material default. If
step-in is not viable, lenders may wish to have the project transferred by
the power purchaser to a new owner. The purchaser must, therefore, be
willing to enter into direct agreements with the project company, lenders,
and regulatory bodies to give effect to such rights. Inserting a provision
requiring the parties and regulatory bodies to enter into direct agreement
with the seller's creditors may help address these concerns. Furthermore,
the PPA should clarify that any enforcement action by lenders in itself will
not constitute a ground for termination.
One other shortcoming is that the PPA does not provide for offshore dispute
settlement such as submission to the jurisdiction of an international
arbitral forum.
Unbalanced risk allocation
The draft does not impose any "take or pay" obligation on the purchaser, and
the PPA relieves EVN from its payment obligations even where it is unable to
take power due to a breakdown of the transmission or distribution grid.
Transmission and distribution risk would generally be assumed by the
purchaser. Where the purchaser cannot take power due to a breakdown of the
transmission or distribution grid, minimum take-or-pay obligations should
remain in place as long as the plant exists. This would customarily be
addressed in the form of a capacity payment.
Moreover, market practice in other jurisdictions in the region requires a
government-affiliated offtaker to assume the risk in cases of political
force majeure events, such as a diplomatic freeze or the introduction of
sanctions. The standard PPA should be revised to specify the burden of risk
in cases of political force majeure events. For instance, PPAs with a
government-affiliated offtaker may entitle sellers to cost relief in the
event that a new tax is introduced or the existing taxes are increased.
Privatisation or reorganisation of the power purchaser, as well as its
insolvency would customarily be seller termination events.
Government guarantee?
It is unclear whether or not the Government is prepared to provide a
guarantee covering customary matters that financiers will usually require,
such as purchaser's payment obligations under the PPA (including termination
payments which may be due following the termination of the PPA) and foreign
currency availability. Vietnam is trending in the direction of weaker
government guarantees in recent years, which is in stark contrast to the
robust guarantees offered on earlier large scale power projects. As reported
in our legal update in February "Tightening the Belt on Vietnam's Sovereign
Guarantees", obtaining sovereign guarantees on corporate loans for projects
that are difficult to finance has recently become increasingly challenging.
Conclusion
The Government has taken an important step forward in proposing the standard
PPA, along with guiding implementing legislation, and by inviting public
comment on the framework. Developing a viable solar energy plan constitutes
progress towards focusing attention and resources on meeting Vietnam's
renewable energy goals. That said, the draft standard form PPA can be
improved in several ways as discussed in this article. Adapting the PPA to
international market standards to ensure bankability and clarifying the
scope for a government guarantee of EVN's obligations as offtaker are key
factors. The latter issue will likely prove challenging given Vietnam's
reluctance to offer strong guarantees in recent years.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
https://www.lexology.com/library/detail.aspx?g=14474dca-3b0b-4f20-8588-72933
19abf01&utm_source=lexology+daily+newsfeed&utm_medium=html+email+-+body+-+ge
neral+section&utm_campaign=lexology+subscriber+daily+feed&utm_content=lexolo
gy+daily+newsfeed+2017-08-30&utm_term=
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Following the issuance of the Prime Minister's Decision No. 11/2017/QD-TTg
("Decision 11") on the development of solar power in April 2017, which we
reported in "Vietnam Goes Green with New Guidance on Solar Power Projects",
the Ministry of Industry and Trade ("MOIT") has proposed a draft circular
that, once issued, will guide the implementation of Decision 11. The draft
circular includes a power purchase agreement (PPA) standard form that,
pursuant to Decision 11, will be mandatory for the sale of solar power to
the Vietnamese government-owned single purchaser - Electricity of Vietnam
(EVN). The draft PPA falls short of expectations since it heavily resembles
the one used for wind independent power projects (IPPs), which is generally
viewed as appropriate for only very small projects. The viability of the PPA
standard form is critical to a well-functioning regulatory framework for the
burgeoning Vietnamese solar energy sector. Investors and other stakeholders,
such as international financiers, will likely expect a significant number of
changes to the final form of the PPA to make solar transactions in Vietnam
bankable. In this legal update, we will discuss concerns with the standard
form PPA and offer some recommendations for positive revisions.
Standard PPA may not be suitable for large power projects
While the standard PPA may be appropriate for smaller scale solar power
projects, a more detailed PPA is more appropriate for larger projects. As a
significant amount of capital investment is required for larger projects,
sponsors and lenders would expect the PPA to specify compensation procedures
applicable in a range of situations, including when a seller is no longer
able to generate power due to a political force majeure event. A more
detailed, long form PPA should be introduced, or the Government should
explicitly allow a negotiated form of PPA be used for large-scale projects.
As a matter of comparison in the region, similar short form PPAs in
Thailand's Very Small Power Producer Program only apply to power projects
that do not exceed 10 megawatt.
Significant gap between standard form PPA and international market practice
There are numerous issues that need to be addressed so as to align the
standard PPA form with international market practice. For instance, the
draft requires changes to the commercial operations date to be announced six
to 12 months in advance of the scheduled date. However, this approach may
not be workable in practice as delays are often unforeseeable. It is common
practice for scheduled commercial operation dates to be extended after the
plant's construction has already been delayed if triggered by factors beyond
the seller's control.
Additionally, a seller's creditor should be notified of defaults. Lenders
would typically be given "step-in rights" after a material default. If
step-in is not viable, lenders may wish to have the project transferred by
the power purchaser to a new owner. The purchaser must, therefore, be
willing to enter into direct agreements with the project company, lenders,
and regulatory bodies to give effect to such rights. Inserting a provision
requiring the parties and regulatory bodies to enter into direct agreement
with the seller's creditors may help address these concerns. Furthermore,
the PPA should clarify that any enforcement action by lenders in itself will
not constitute a ground for termination.
One other shortcoming is that the PPA does not provide for offshore dispute
settlement such as submission to the jurisdiction of an international
arbitral forum.
Unbalanced risk allocation
The draft does not impose any "take or pay" obligation on the purchaser, and
the PPA relieves EVN from its payment obligations even where it is unable to
take power due to a breakdown of the transmission or distribution grid.
Transmission and distribution risk would generally be assumed by the
purchaser. Where the purchaser cannot take power due to a breakdown of the
transmission or distribution grid, minimum take-or-pay obligations should
remain in place as long as the plant exists. This would customarily be
addressed in the form of a capacity payment.
Moreover, market practice in other jurisdictions in the region requires a
government-affiliated offtaker to assume the risk in cases of political
force majeure events, such as a diplomatic freeze or the introduction of
sanctions. The standard PPA should be revised to specify the burden of risk
in cases of political force majeure events. For instance, PPAs with a
government-affiliated offtaker may entitle sellers to cost relief in the
event that a new tax is introduced or the existing taxes are increased.
Privatisation or reorganisation of the power purchaser, as well as its
insolvency would customarily be seller termination events.
Government guarantee?
It is unclear whether or not the Government is prepared to provide a
guarantee covering customary matters that financiers will usually require,
such as purchaser's payment obligations under the PPA (including termination
payments which may be due following the termination of the PPA) and foreign
currency availability. Vietnam is trending in the direction of weaker
government guarantees in recent years, which is in stark contrast to the
robust guarantees offered on earlier large scale power projects. As reported
in our legal update in February "Tightening the Belt on Vietnam's Sovereign
Guarantees", obtaining sovereign guarantees on corporate loans for projects
that are difficult to finance has recently become increasingly challenging.
Conclusion
The Government has taken an important step forward in proposing the standard
PPA, along with guiding implementing legislation, and by inviting public
comment on the framework. Developing a viable solar energy plan constitutes
progress towards focusing attention and resources on meeting Vietnam's
renewable energy goals. That said, the draft standard form PPA can be
improved in several ways as discussed in this article. Adapting the PPA to
international market standards to ensure bankability and clarifying the
scope for a government guarantee of EVN's obligations as offtaker are key
factors. The latter issue will likely prove challenging given Vietnam's
reluctance to offer strong guarantees in recent years.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
https://www.lexology.com/library/detail.aspx?g=14474dca-3b0b-4f20-8588-72933
19abf01&utm_source=lexology+daily+newsfeed&utm_medium=html+email+-+body+-+ge
neral+section&utm_campaign=lexology+subscriber+daily+feed&utm_content=lexolo
gy+daily+newsfeed+2017-08-30&utm_term=
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Tuesday, August 29, 2017
Is the Philippines ready for nuclear energy?
Is the Philippines ready for nuclear energy?
As the government's search for reliable, safe and affordable power
continues, the Department of Energy (DOE) has taken a technology-neutral
stand on possible solutions to the country's growing demand for energy and
100 percent electrification in line with the Duterte administration's
"Ambisyon 2040" vision of a fully-developed Philippines.
One of the possible alternatives to fossil fuel is nuclear energy, which was
the subject of the "Nuclear Energy Forum" held by the University of the
Philippines Engineering Center, Engineering Research and Development for
Technology (ERDT) and the UP Engineering Research and Development Foundation
Inc. at the Novotel Manila Hotel in Quezon City last August 22.
Experts from around the globe discussed both the advantages and
disadvantages of the civilian use of nuclear power.
On the government side, Energy Undersecretary Donato Marcos explained that
the department was considering nuclear power because of its capability to
provide 75 percent of the country's base load requirement.
"Strong economic growth and rising population will require more energy, plus
the need for increased power capacity. Nuclear energy has proven to be
economically viable, highly reliable and may contribute towards reducing the
high cost of electricity and carbon dioxide emissions," Marcos said.
Foreign experts like Jose Bastos of the Nuclear Power Infrastructure
Development Section of the International Atomic Energy Agency (IAEA)
emphasized that a nuclear energy program was a long-term engagement that
requires careful planning, preparation and investments in time, finances and
human resources.
Dr. Ahmed Abdulla, a post-doctoral fellow from the University of
California-San Diego, acknowledged that nuclear energy produces lesser
carbon emissions.
He, however, pointed out that the use of nuclear power does not necessarily
guarantee the energy security that any country needs.
Abdulla said the public should always be involved.
"Community engagement and involvement is always a good thing," he said,
noting that information dissemination is important to avoid conflicts and
opposition if and when a nuclear program is implemented.
The need for safety and security protocols for the handling and disposal of
hazardous nuclear waste, which takes centuries to break down, was also
stressed during the forum.
This is why a legislative framework has to be in place, said Senator Sherwin
Gatchalian, who chairs the Senate committee on energy.
"Because nuclear energy is a long-term commitment, and the political
lifespan of any leader is only six years, we have to ensure that the laws
continue, provide check and balance and appropriations. If we choose to
enter into a nuclear energy program, we have to make sure that we have
enough funds to support and regulate the industry," he said.
The forum also raised the question on whether the Bataan Nuclear Power Plant
(BNPP) project would be revived by the current administration.
Energy Undersecretary Felix William Fuentebella reiterated that before any
action can be done on the BNPP or before any other nuclear energy project
can even begin, the national position must be firm.
"Before we can talk about projects, we have to have a national position on
the program itself and not a specific project. What happened in the past was
that we built the project first before we agreed on a national position," he
said.
Marcos explained that there was a plan to conduct a thorough assessment of
the BNPP by the DOE and nuclear technology experts from Russia, Japan,
China, Korea and France and only the recommendation of the Nuclear Energy
Program Implementation Organization (NEPIO) will determine the national
position on whether the BNPP can be rehabilitated or not.
"We need nuclear technology. It's not just for energy purposes but also for
agricultural, medical, industrial and commercial applications," he said.
Winding up the forum, the executive director of the UP National Engineering
Center, Dr. Mili-Ann Tamayao, said the commitment must withstand time and
political eras.
"In a democratic country like ours, this can only be done when people are
informed and actively engaged in the decision process. However, the
political process can be arduous and endless but it can result in a more
durable policy," she said.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.manilatimes.net/philippines-ready-nuclear-energy/347404/
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
As the government's search for reliable, safe and affordable power
continues, the Department of Energy (DOE) has taken a technology-neutral
stand on possible solutions to the country's growing demand for energy and
100 percent electrification in line with the Duterte administration's
"Ambisyon 2040" vision of a fully-developed Philippines.
One of the possible alternatives to fossil fuel is nuclear energy, which was
the subject of the "Nuclear Energy Forum" held by the University of the
Philippines Engineering Center, Engineering Research and Development for
Technology (ERDT) and the UP Engineering Research and Development Foundation
Inc. at the Novotel Manila Hotel in Quezon City last August 22.
Experts from around the globe discussed both the advantages and
disadvantages of the civilian use of nuclear power.
On the government side, Energy Undersecretary Donato Marcos explained that
the department was considering nuclear power because of its capability to
provide 75 percent of the country's base load requirement.
"Strong economic growth and rising population will require more energy, plus
the need for increased power capacity. Nuclear energy has proven to be
economically viable, highly reliable and may contribute towards reducing the
high cost of electricity and carbon dioxide emissions," Marcos said.
Foreign experts like Jose Bastos of the Nuclear Power Infrastructure
Development Section of the International Atomic Energy Agency (IAEA)
emphasized that a nuclear energy program was a long-term engagement that
requires careful planning, preparation and investments in time, finances and
human resources.
Dr. Ahmed Abdulla, a post-doctoral fellow from the University of
California-San Diego, acknowledged that nuclear energy produces lesser
carbon emissions.
He, however, pointed out that the use of nuclear power does not necessarily
guarantee the energy security that any country needs.
Abdulla said the public should always be involved.
"Community engagement and involvement is always a good thing," he said,
noting that information dissemination is important to avoid conflicts and
opposition if and when a nuclear program is implemented.
The need for safety and security protocols for the handling and disposal of
hazardous nuclear waste, which takes centuries to break down, was also
stressed during the forum.
This is why a legislative framework has to be in place, said Senator Sherwin
Gatchalian, who chairs the Senate committee on energy.
"Because nuclear energy is a long-term commitment, and the political
lifespan of any leader is only six years, we have to ensure that the laws
continue, provide check and balance and appropriations. If we choose to
enter into a nuclear energy program, we have to make sure that we have
enough funds to support and regulate the industry," he said.
The forum also raised the question on whether the Bataan Nuclear Power Plant
(BNPP) project would be revived by the current administration.
Energy Undersecretary Felix William Fuentebella reiterated that before any
action can be done on the BNPP or before any other nuclear energy project
can even begin, the national position must be firm.
"Before we can talk about projects, we have to have a national position on
the program itself and not a specific project. What happened in the past was
that we built the project first before we agreed on a national position," he
said.
Marcos explained that there was a plan to conduct a thorough assessment of
the BNPP by the DOE and nuclear technology experts from Russia, Japan,
China, Korea and France and only the recommendation of the Nuclear Energy
Program Implementation Organization (NEPIO) will determine the national
position on whether the BNPP can be rehabilitated or not.
"We need nuclear technology. It's not just for energy purposes but also for
agricultural, medical, industrial and commercial applications," he said.
Winding up the forum, the executive director of the UP National Engineering
Center, Dr. Mili-Ann Tamayao, said the commitment must withstand time and
political eras.
"In a democratic country like ours, this can only be done when people are
informed and actively engaged in the decision process. However, the
political process can be arduous and endless but it can result in a more
durable policy," she said.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.manilatimes.net/philippines-ready-nuclear-energy/347404/
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Malaysia Energy Commission: Jail, fine for power thieves
Malaysia Energy Commission: Jail, fine for power thieves
Premise owners who use illegal electrical extensions to obtain electricity
will be punished with hefty fines and a maximum two-year jail term, said the
Energy Commission.
The Energy Commission, which regulates electricity supply, said it will be
increasing its random checks in Peninsular Malaysia and Sabah, and will
carry out full enforcement of the Electricity Supply Act 1990.
"The commission is more than ready to haul up those who have made illegal
connections on their premises, and slap them with a maximum fine of
RM10,000, or imprisonment of up to two years, or both. The focus will also
be on private homeowners," the commission's spokesman was quoted telling
local daily New Straits Times.
Under Section 37(13) of the Electricity Supply Act 1990, it is an offence to
install electrical wiring or extensions to existing wiring on premises
without prior written approval from the electricity supplier.
The same section states that this offence is punishable with a maximum
RM10,000 fine and maximum two-year jail term or both.
The spokesman said the commission had in 2016 found 245 premises with
illegal extensions, a problem which it believed is widespread in squatter
areas and low-cost residential areas.
Illegal wiring extensions - which are unsafe and may cause fires - are
usually done to steal electricity, which is also punishable under Section
37(3) by a fine of between RM1,000 to RM50,000 or a maximum one-year jail
term or both for a first-time offender who is a domestic consumer.
The punishments become heftier for non-domestic consumer and those who
repeat the offence.
According to the commission, 172 cases of electrical theft were recorded
last year, but 206 cases have already been recorded since this January.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.themalaymailonline.com/malaysia/article/energy-commission-jail-fi
ne-for-power-thieves#ugf2zCFbIrhFBX59.97
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Premise owners who use illegal electrical extensions to obtain electricity
will be punished with hefty fines and a maximum two-year jail term, said the
Energy Commission.
The Energy Commission, which regulates electricity supply, said it will be
increasing its random checks in Peninsular Malaysia and Sabah, and will
carry out full enforcement of the Electricity Supply Act 1990.
"The commission is more than ready to haul up those who have made illegal
connections on their premises, and slap them with a maximum fine of
RM10,000, or imprisonment of up to two years, or both. The focus will also
be on private homeowners," the commission's spokesman was quoted telling
local daily New Straits Times.
Under Section 37(13) of the Electricity Supply Act 1990, it is an offence to
install electrical wiring or extensions to existing wiring on premises
without prior written approval from the electricity supplier.
The same section states that this offence is punishable with a maximum
RM10,000 fine and maximum two-year jail term or both.
The spokesman said the commission had in 2016 found 245 premises with
illegal extensions, a problem which it believed is widespread in squatter
areas and low-cost residential areas.
Illegal wiring extensions - which are unsafe and may cause fires - are
usually done to steal electricity, which is also punishable under Section
37(3) by a fine of between RM1,000 to RM50,000 or a maximum one-year jail
term or both for a first-time offender who is a domestic consumer.
The punishments become heftier for non-domestic consumer and those who
repeat the offence.
According to the commission, 172 cases of electrical theft were recorded
last year, but 206 cases have already been recorded since this January.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.themalaymailonline.com/malaysia/article/energy-commission-jail-fi
ne-for-power-thieves#ugf2zCFbIrhFBX59.97
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Philippines: VAT zero rating incentive for the renewable energy sector
Philippines: VAT zero rating incentive for the renewable energy sector
Due to the pressing concern of climate change, investments in renewable
energy (RE) is now an ever-growing opportunity in the Philippines.
Activities under the Renewable Energy Act are regularly included in the
country's Investment Priorities Plan for entitlement to benefits and
privileges.
Some fiscal incentives of RE projects include income tax holiday, exemption
from duties and zero percent value-added tax (VAT) rate, among others. But
while guaranteed under the law, procedures for claiming the incentives are
not without any challenges.
The recent case of CBK Power Company Limited vs. Commissioner of Internal
Revenue (CTA Case No. 8784, Feb. 23), ("CBK Case") is instructive in this
light. In this case, the Court of Tax Appeals (CTA) First Division, through
Associate Justice Cielito Mindaro-Grulla discussed a notable point on
claiming VAT refund by RE developers for their sales of electricity
generated through hydropower. The petitioner in the case is a special
purpose entity engaged in the operation, maintenance, management and
ownership of the hydroelectric power plant. A claim for refund of unutilized
or excess creditable input taxes was filed by the petitioner, attributing
the same to its zero-rated sales of electricity generated through hydropower
and its purchase of local supply of goods, properties and services needed
for the development, construction and installation of its plant facilities.
In resolving the issue, the CTA discussed in detail the entitlement of an RE
developer to a zero percent VAT by applying the pertinent provisions of the
National Internal Revenue Code (NIRC) in relation to the Renewable Energy
(RE) Act and its Implementing Rules and Regulations (IRR). The NIRC provides
that sale of power or fuel generated through renewable sources of energy is
among the transactions subject to zero percent VAT. As to petitioner's
purchase of local supply of goods, properties and services needed for the
development, construction and installation of its plant facilities, the CTA
ruled that such transactions are likewise zero-rated pursuant to the general
incentives granted under the RE Act and its IRR.
The CTA disallowed the refund and explained that the petitioner's claim for
input VAT refund against the BIR is not the proper recourse of an RE
developer. This is due to the fact that a zero-rated transaction depicts
that no output VAT will be passed on to and paid by the RE developer,
therefore, the RE developer is not entitled to refund, or issuance of tax
credit certificate from the said purchases. Instead, the RE developer, who
is also the buyer in a zero-rated sale, can seek reimbursement of the VAT
paid from its supplier. In other words, the proper recourse of an entity
entitled to a zero-rated transaction is not against the government, but
against the seller who shifted to it the output VAT. To hold otherwise can
result in undue enrichment at the expense of the government.
Entitlement of RE developers to VAT zero-rating and other fiscal incentives
is a procedural consideration as much as it is a substantive concern. As a
substantive matter, RE developers must meet the definition provided under
the Renewable Energy Act which states that an RE developer must be an
individual/group of individuals, formed in accordance with existing
Philippine Laws, engaged in the exploration, development and utilization of
RE resources and actual operation of RE systems/facilities. The IRR of the
RE Act further qualifies an RE developer to include entities engaged in the
exploration, development and/or utilization of RE resources, or the
generation of electricity from RE resources, or both. To be entitled to
fiscal incentives such as VAT zero-rating, an RE developer must be able to
prove that a particular activity or transaction falls under the relevant
provisions of the law. The recognized activities for VAT zero-rating
include:
1.) Sale of fuel from RE sources or power generated from renewable sources
of energy.
2.) The whole process of development of RE sources up to its conversion into
power, including, but not limited to services performed by subcontractors
and/or contractors.
3.) The RE developer's purchase of the local goods, properties and services
needed for the development, construction and installation of the plant
facilities of the RE developer.
Note that it is important to prove that the purchases are to be used for the
development, construction and installation of the RE developer's plant
facilities, otherwise, there can be no entitlement to incentives under the
law.
As regards procedural aspects, the RE developer must comply with certain
conditions in order to avail of incentives and other privileges. This means
that RE developers, as well as manufacturers, fabricators and suppliers of
locally-produced RE equipment must first be registered with the Department
of Energy (DOE) through the Renewable Energy Management Bureau (REMB) to
avail of the incentives granted by law. Other conditions mentioned are
registration with the Board of Investments (BOI) and securing a Certificate
of Endorsement from the DOE on a per transaction basis. Other government
agencies, such as the Bureau of Internal Revenue (BIR), may also promulgate
revenue regulations to facilitate the procedure in availing VAT zero-rating
incentives. As of the moment, however, registrations with the BOI and DOE,
and the issuance of the aforementioned certifications are the only
requirements that are clearly prescribed under the law.
Although entitlement of RE developers to incentives is guaranteed under
pertinent laws and regulations, it appears that the procedure in fully
availing of the privileges necessitates more than just a substantive
requirement. In all cases, issuing well-defined procedures by all concerned
government agencies can create a more welcoming opportunity that will
attract potential investors.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.philstar.com/business/2017/08/29/1733578/vat-zero-rating-incentiv
e-renewable-energy-sector
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Due to the pressing concern of climate change, investments in renewable
energy (RE) is now an ever-growing opportunity in the Philippines.
Activities under the Renewable Energy Act are regularly included in the
country's Investment Priorities Plan for entitlement to benefits and
privileges.
Some fiscal incentives of RE projects include income tax holiday, exemption
from duties and zero percent value-added tax (VAT) rate, among others. But
while guaranteed under the law, procedures for claiming the incentives are
not without any challenges.
The recent case of CBK Power Company Limited vs. Commissioner of Internal
Revenue (CTA Case No. 8784, Feb. 23), ("CBK Case") is instructive in this
light. In this case, the Court of Tax Appeals (CTA) First Division, through
Associate Justice Cielito Mindaro-Grulla discussed a notable point on
claiming VAT refund by RE developers for their sales of electricity
generated through hydropower. The petitioner in the case is a special
purpose entity engaged in the operation, maintenance, management and
ownership of the hydroelectric power plant. A claim for refund of unutilized
or excess creditable input taxes was filed by the petitioner, attributing
the same to its zero-rated sales of electricity generated through hydropower
and its purchase of local supply of goods, properties and services needed
for the development, construction and installation of its plant facilities.
In resolving the issue, the CTA discussed in detail the entitlement of an RE
developer to a zero percent VAT by applying the pertinent provisions of the
National Internal Revenue Code (NIRC) in relation to the Renewable Energy
(RE) Act and its Implementing Rules and Regulations (IRR). The NIRC provides
that sale of power or fuel generated through renewable sources of energy is
among the transactions subject to zero percent VAT. As to petitioner's
purchase of local supply of goods, properties and services needed for the
development, construction and installation of its plant facilities, the CTA
ruled that such transactions are likewise zero-rated pursuant to the general
incentives granted under the RE Act and its IRR.
The CTA disallowed the refund and explained that the petitioner's claim for
input VAT refund against the BIR is not the proper recourse of an RE
developer. This is due to the fact that a zero-rated transaction depicts
that no output VAT will be passed on to and paid by the RE developer,
therefore, the RE developer is not entitled to refund, or issuance of tax
credit certificate from the said purchases. Instead, the RE developer, who
is also the buyer in a zero-rated sale, can seek reimbursement of the VAT
paid from its supplier. In other words, the proper recourse of an entity
entitled to a zero-rated transaction is not against the government, but
against the seller who shifted to it the output VAT. To hold otherwise can
result in undue enrichment at the expense of the government.
Entitlement of RE developers to VAT zero-rating and other fiscal incentives
is a procedural consideration as much as it is a substantive concern. As a
substantive matter, RE developers must meet the definition provided under
the Renewable Energy Act which states that an RE developer must be an
individual/group of individuals, formed in accordance with existing
Philippine Laws, engaged in the exploration, development and utilization of
RE resources and actual operation of RE systems/facilities. The IRR of the
RE Act further qualifies an RE developer to include entities engaged in the
exploration, development and/or utilization of RE resources, or the
generation of electricity from RE resources, or both. To be entitled to
fiscal incentives such as VAT zero-rating, an RE developer must be able to
prove that a particular activity or transaction falls under the relevant
provisions of the law. The recognized activities for VAT zero-rating
include:
1.) Sale of fuel from RE sources or power generated from renewable sources
of energy.
2.) The whole process of development of RE sources up to its conversion into
power, including, but not limited to services performed by subcontractors
and/or contractors.
3.) The RE developer's purchase of the local goods, properties and services
needed for the development, construction and installation of the plant
facilities of the RE developer.
Note that it is important to prove that the purchases are to be used for the
development, construction and installation of the RE developer's plant
facilities, otherwise, there can be no entitlement to incentives under the
law.
As regards procedural aspects, the RE developer must comply with certain
conditions in order to avail of incentives and other privileges. This means
that RE developers, as well as manufacturers, fabricators and suppliers of
locally-produced RE equipment must first be registered with the Department
of Energy (DOE) through the Renewable Energy Management Bureau (REMB) to
avail of the incentives granted by law. Other conditions mentioned are
registration with the Board of Investments (BOI) and securing a Certificate
of Endorsement from the DOE on a per transaction basis. Other government
agencies, such as the Bureau of Internal Revenue (BIR), may also promulgate
revenue regulations to facilitate the procedure in availing VAT zero-rating
incentives. As of the moment, however, registrations with the BOI and DOE,
and the issuance of the aforementioned certifications are the only
requirements that are clearly prescribed under the law.
Although entitlement of RE developers to incentives is guaranteed under
pertinent laws and regulations, it appears that the procedure in fully
availing of the privileges necessitates more than just a substantive
requirement. In all cases, issuing well-defined procedures by all concerned
government agencies can create a more welcoming opportunity that will
attract potential investors.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.philstar.com/business/2017/08/29/1733578/vat-zero-rating-incentiv
e-renewable-energy-sector
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Philippines: Efforts to lift oil exploration ban in West PH sea still underway
Philippines: Efforts to lift oil exploration ban in West PH sea still
underway
The Department of Energy (DOE) assured that the government is working to
lift the moratorium and finally resume oil and gas exploration activities on
the disputed areas located in the West Philippine Sea.
"We are working for the lifting of the moratorium. We are identifying how do
we proceed, what are the hurdles we need to resolve. There is no definite
timeframe but we are doing this with a sense of urgency because we need it
for our national energy security, but we are being very analytical, being
very careful to make sure that we do it correctly," DOE secretary Alfonso
Cusi told reporters in an interview in Taguig City.
Cusi added "confidence building" is being done between the Philippines and
China as the Department of Foreign Affairs (DFA) is also coordinating with
its foreign counterpart.
"We develop the trust but trust must be supported with concrete actions. It
cannot happen through words alone. We have to get that so when we lift it
already, no any untoward action can happen," he said.
However, Cusi said the DFA has yet to inform the DOE of any updates on its
talks with its Chinese counterpart.
While waiting for the lifting of the moratorium, the DOE said it is limited
to only monitor and prepare for notices for those affected by the temporary
ban of activities in the contested areas.
"DFA and DOE are working together so that we can resume work at the
contested areas and we are looking for ways. By being pragmatic about it, we
are looking for ways, solution, a way to move forward that is a win-win for
all," Cusi explained.
Earlier, Manuel Pangilinan, chairman of oil and gas exploration firm PXP
Energy Corp., urged the government to finally lift the moratorium.
"I think it's about time for us to engage the government, particularly (DFA)
secretary (Allan Peter) Cayetano, whether we could actually get the
government to allow us to restart the works that were postponed. Because all
of the pronouncements appeared to have been made between the Philippines and
China are moving in positive directions," he recently said.
But according to the DOE, the company has not formally approached the
agencyregarding the issue.
PXP Energy earlier planned drilling activities in its service contract 72
located northwest of Palawan, but declared a force majeure event due to the
territorial dispute in the West Philippine Sea, which is estimated to hold
165 million barrels of oil and 3.5 trillion cubic feet of gas.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://malaya.com.ph/business-news/business/doe-efforts-lift-oil-exploration
-ban-west-ph-sea-still-underway
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
underway
The Department of Energy (DOE) assured that the government is working to
lift the moratorium and finally resume oil and gas exploration activities on
the disputed areas located in the West Philippine Sea.
"We are working for the lifting of the moratorium. We are identifying how do
we proceed, what are the hurdles we need to resolve. There is no definite
timeframe but we are doing this with a sense of urgency because we need it
for our national energy security, but we are being very analytical, being
very careful to make sure that we do it correctly," DOE secretary Alfonso
Cusi told reporters in an interview in Taguig City.
Cusi added "confidence building" is being done between the Philippines and
China as the Department of Foreign Affairs (DFA) is also coordinating with
its foreign counterpart.
"We develop the trust but trust must be supported with concrete actions. It
cannot happen through words alone. We have to get that so when we lift it
already, no any untoward action can happen," he said.
However, Cusi said the DFA has yet to inform the DOE of any updates on its
talks with its Chinese counterpart.
While waiting for the lifting of the moratorium, the DOE said it is limited
to only monitor and prepare for notices for those affected by the temporary
ban of activities in the contested areas.
"DFA and DOE are working together so that we can resume work at the
contested areas and we are looking for ways. By being pragmatic about it, we
are looking for ways, solution, a way to move forward that is a win-win for
all," Cusi explained.
Earlier, Manuel Pangilinan, chairman of oil and gas exploration firm PXP
Energy Corp., urged the government to finally lift the moratorium.
"I think it's about time for us to engage the government, particularly (DFA)
secretary (Allan Peter) Cayetano, whether we could actually get the
government to allow us to restart the works that were postponed. Because all
of the pronouncements appeared to have been made between the Philippines and
China are moving in positive directions," he recently said.
But according to the DOE, the company has not formally approached the
agencyregarding the issue.
PXP Energy earlier planned drilling activities in its service contract 72
located northwest of Palawan, but declared a force majeure event due to the
territorial dispute in the West Philippine Sea, which is estimated to hold
165 million barrels of oil and 3.5 trillion cubic feet of gas.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://malaya.com.ph/business-news/business/doe-efforts-lift-oil-exploration
-ban-west-ph-sea-still-underway
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Thailand: B.Grimm upgrades revenue growth aim
Thailand: B.Grimm upgrades revenue growth aim
SET-listed B.Grimm Power Plc, the power-generation arm of the conglomerate,
expects 2017 revenue growth to surpass the previous forecast of 18% after a
strong first half, with additional power in the second half expected to
further boost earnings.
Executive vice-president and chief financial officer Nopadej Karnasuta said
two hydropower projects in Laos, namely Xenamnoy 2 and Xekatam 1, are due to
start commercial operations and generate revenue with a combined installed
capacity of 20.1 megawatts.
The company is confident that full-year revenue will grow by more than 18%
from last year's 2.77 billion baht. "We expect additional income in the
third quarter of this year from projects in Laos," Mr Nopadej said.
B.Grimm Power's solid performance in the first half also lent support to the
company's full-year view, he said. In the first half, the company posted
revenue of 15 billion baht, up 14.2% year-on-year.
Rising revenue in the first half was largely due to increasing
power-generating capacity of two power plants in two major industrial
estates with a combined capacity of 133MW -- Amata B.Grimm Power 5 in Rayong
and co-generation BPWHA1 at Hemaraj industrial estate.
"Rising revenue came from higher power sales to the Electricity Generating
Authority of Thailand from ABP5 and BPWHA1," Mr Nopadej said. He said the
company expects to benefit from fuel tariff rates set to rise by 2.5% in the
September-December period to 8.87 satang per kilowatt-hour.
Despite the revenue gain, net profit in the first half was flat at 1.01
billion baht, according to data from the Stock Exchange of Thailand.
Mr Nopadej said the company will continue to focus on increasing total
power-generating capacity of 2,482MW from a combined 44 power plants by
2022, up from 1,646MW from 30 power plants at present.
In 2018, B.Grimm is expected to have an additional capacity of 36MW from
solar projects after setting aside 12.5 billion baht for investment, not
including mergers and acquisitions.
Mr Nopadej said the company is in talks with a local partner in Cambodia to
develop a power project, including power transmission and power distribution
facilities for the Poipet special economic zone with an investment budget of
US$3 million (99.7 million baht). The project is expected to be competed in
February 2018.
"The internal rate of return of the Poipet project is about 15% a year," he
said.
B.Grimm is also negotiating with other Cambodian investors to expand into
five special economic zones in Cambodia, including Poipet.
"We expect five projects to start commercial operations in the next five
years," Mr Nopadej said. The company is also conducting a feasibility study
for a 2,500MW greenfield power plant, planned for Asean.
BGRIM shares closed yesterday on the SET at 19.10 baht, down ten satang, in
trade worth 297 million baht.
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Link to Original Article:
http://www.bangkokpost.com/business/news/1314847/b-grimm-upgrades-revenue-gr
owth-aim
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
SET-listed B.Grimm Power Plc, the power-generation arm of the conglomerate,
expects 2017 revenue growth to surpass the previous forecast of 18% after a
strong first half, with additional power in the second half expected to
further boost earnings.
Executive vice-president and chief financial officer Nopadej Karnasuta said
two hydropower projects in Laos, namely Xenamnoy 2 and Xekatam 1, are due to
start commercial operations and generate revenue with a combined installed
capacity of 20.1 megawatts.
The company is confident that full-year revenue will grow by more than 18%
from last year's 2.77 billion baht. "We expect additional income in the
third quarter of this year from projects in Laos," Mr Nopadej said.
B.Grimm Power's solid performance in the first half also lent support to the
company's full-year view, he said. In the first half, the company posted
revenue of 15 billion baht, up 14.2% year-on-year.
Rising revenue in the first half was largely due to increasing
power-generating capacity of two power plants in two major industrial
estates with a combined capacity of 133MW -- Amata B.Grimm Power 5 in Rayong
and co-generation BPWHA1 at Hemaraj industrial estate.
"Rising revenue came from higher power sales to the Electricity Generating
Authority of Thailand from ABP5 and BPWHA1," Mr Nopadej said. He said the
company expects to benefit from fuel tariff rates set to rise by 2.5% in the
September-December period to 8.87 satang per kilowatt-hour.
Despite the revenue gain, net profit in the first half was flat at 1.01
billion baht, according to data from the Stock Exchange of Thailand.
Mr Nopadej said the company will continue to focus on increasing total
power-generating capacity of 2,482MW from a combined 44 power plants by
2022, up from 1,646MW from 30 power plants at present.
In 2018, B.Grimm is expected to have an additional capacity of 36MW from
solar projects after setting aside 12.5 billion baht for investment, not
including mergers and acquisitions.
Mr Nopadej said the company is in talks with a local partner in Cambodia to
develop a power project, including power transmission and power distribution
facilities for the Poipet special economic zone with an investment budget of
US$3 million (99.7 million baht). The project is expected to be competed in
February 2018.
"The internal rate of return of the Poipet project is about 15% a year," he
said.
B.Grimm is also negotiating with other Cambodian investors to expand into
five special economic zones in Cambodia, including Poipet.
"We expect five projects to start commercial operations in the next five
years," Mr Nopadej said. The company is also conducting a feasibility study
for a 2,500MW greenfield power plant, planned for Asean.
BGRIM shares closed yesterday on the SET at 19.10 baht, down ten satang, in
trade worth 297 million baht.
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Link to Original Article:
http://www.bangkokpost.com/business/news/1314847/b-grimm-upgrades-revenue-gr
owth-aim
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John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Philippines: Retail a rising risk for Meralco - MVP
Philippines: Retail a rising risk for Meralco - MVP
Manila Electric Co. (Meralco), the listed power distributor chaired by
business tycoon Manuel V. Pangilinan, sees the growing retail electricity
business in the country as a risk to the company, which for decades has been
the main power distributor in Luzon.
In a recent briefing, Pangilinan said that to some extent, the shift of big
power users to other suppliers, "is a risk for Meralco."
"We have our own strengths (but) it is a risk for Meralco because Meralco
buys electricity from the market. It is a trader...We have a trading margin
for that," he said.
The liberalization of the power industry as mandated by the Electric Power
Industry Reform Act of 2001 has paved the way for the entry of retail
electricity suppliers or RES in the sector.
Introduced in June 2013, RES are entities authorized by the Energy
Regulatory Commission (ERC), the power regulator, to sell, broker or market
electricity to big power users or those with an average peak demand of one
megawatt for 12 months.
Prior to June 2013, all these big customers were captive customers of
Meralco, said Betty Siy-Yap, Meralco chief finance officer.
Under the present set-up, Meralco earns from sourcing power and from
distributing this power although the actual generation and transmission
charges are passed-through charges.
"Prior to June 26, 2013, all the customers are captive customers which means
we supply the energy to all the customers but it's a pass-through which
means we don't make a margin on generation or transmission for that matter.
It's only distribution that we make money," Siy-Yap said.
She said Meralco could still earn because the RES entities would still use
Meralco's distribution lines, but revenues would be affected because the
company would no longer earn from sourcing the power supply for customers.
"If it's full contestability and everybody can choose their supplier, we
still make money because distribution is our main business. So if everybody
chooses somebody else, our bottom-line is still the same but topline would
shrink because the supply part is not with us (anymore)," she said.
To mitigate the impact of competition brought about by the RES regime,
Meralco has also introduced its own RES entity.
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Link to Original Article:
http://www.philstar.com/business/2017/08/29/1733572/retail-rising-risk-meral
co-mvp
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John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
Manila Electric Co. (Meralco), the listed power distributor chaired by
business tycoon Manuel V. Pangilinan, sees the growing retail electricity
business in the country as a risk to the company, which for decades has been
the main power distributor in Luzon.
In a recent briefing, Pangilinan said that to some extent, the shift of big
power users to other suppliers, "is a risk for Meralco."
"We have our own strengths (but) it is a risk for Meralco because Meralco
buys electricity from the market. It is a trader...We have a trading margin
for that," he said.
The liberalization of the power industry as mandated by the Electric Power
Industry Reform Act of 2001 has paved the way for the entry of retail
electricity suppliers or RES in the sector.
Introduced in June 2013, RES are entities authorized by the Energy
Regulatory Commission (ERC), the power regulator, to sell, broker or market
electricity to big power users or those with an average peak demand of one
megawatt for 12 months.
Prior to June 2013, all these big customers were captive customers of
Meralco, said Betty Siy-Yap, Meralco chief finance officer.
Under the present set-up, Meralco earns from sourcing power and from
distributing this power although the actual generation and transmission
charges are passed-through charges.
"Prior to June 26, 2013, all the customers are captive customers which means
we supply the energy to all the customers but it's a pass-through which
means we don't make a margin on generation or transmission for that matter.
It's only distribution that we make money," Siy-Yap said.
She said Meralco could still earn because the RES entities would still use
Meralco's distribution lines, but revenues would be affected because the
company would no longer earn from sourcing the power supply for customers.
"If it's full contestability and everybody can choose their supplier, we
still make money because distribution is our main business. So if everybody
chooses somebody else, our bottom-line is still the same but topline would
shrink because the supply part is not with us (anymore)," she said.
To mitigate the impact of competition brought about by the RES regime,
Meralco has also introduced its own RES entity.
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Link to Original Article:
http://www.philstar.com/business/2017/08/29/1733572/retail-rising-risk-meral
co-mvp
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John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
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