Asian Power

ISSUE 58 | DISPLAY TO 31 AUG 2013 | www.asian-power.com | A Charlton Media Group publication

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eco-friendly clp power 80% of CLP’s primary emissions were reduced over the last 20 years

MICA(P) 248/07/2011

FEATURE Asia a hotbed for grid storage innovation

Country Report Malaysia to fail in meeting 2015 renewable energy target

opinion Hydropower ranking for generation expansion

opinion China’s State Grid moves into deregulated power markets

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Answers for industry.

News from asian-power.com Daily news from Asia most read

PROJECT

ENVIRONMENT

Vietnam protests 1,260MW Laotian mega-dam project The proposed project in northern Laos sits about 100 km south of the Lai Chau-Dien Bien fault line in a seismic-prone area. The mega-dam’s construction might increase the probability of earthquakes in a region already prone to seismic activity.

PROJECT

China plans massive distributed solar plants The National Energy Administration is planning to setup distributed solar photovoltaic demonstration power plants across the country. The plants will be operated in National Economic Development Zones and industrial parks.

ENVIRONMENT

ENVIRONMENT

Indonesia bats for ASEAN energy stability Indonesia’s Minister of Energy and Mineral Resources Jero Wacik said ASEAN countries must strengthen cooperation in maintaining energy, stability and sustainability, especially in welcoming the upcoming 2015 ASEAN Economic Community.

USAID invests US$100 million in Indian clean energy fund The U.S. Agency for International Development said it will partner with U.S.-based institutional investor Northern Lights Capital Group to facilitate a US$100 million investment in India’s clean energy sector via Nereus Capital.

ENVIRONMENT

Philippines could restart idle nuclear plant Rehabilitating the Bataan Nuclear Power Plant (BNPP) will cost US$1 billion. State-owned power firm National Power Corporation hopes the government considers its proposed US$1 billion rehabilitation plan for the inert BNPP.

India prepares perks for wind power developers The Ministry of New and Renewable Energy has proposed reintroducing tax depreciation benefits for wind farm owners and increasing an alternate generation-based subsidy.

The proposal awaits Cabinet approval.

FROM THE BLOG Why Taiwan is not giving up its nuclear power

BY EUGENE CHEN There are encouraging news in promoting green energy.

However, many indicators show that the tendency of using nuclear power to generate electricity is still far from extinction.

What island sentinels predict about renewable energy grid

BY FOERD AMES Seemingly profitable unidirectional flow, from extraction to aerosolized dispensation, disavowed true cost of deleterious atmospheric and organic consequence.

Can green technology really save the planet?

BY MATTHIAS G. For more than 10,000 years, the climate and CO2 concentration has been very stable, but now it has gone beyond 400 parts per million as a measurement of the concentration of the CO2 in the air, which has reached a problematic level.

What you must know about solar PV market before it reaches $155b

BY EDWARD CAHILL The solar photovoltaic (PV) market is poised to rise from the ashes of its 2011 crisis to grow to $155 billion in 2018, as market forces engineer a turnaround to a healthy 10.5% compound annual growth rate.

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ASIAN POWER 3

FIRST Asia hotbed for grid storage innovation

O

ne of the most interesting and telling trends discussed in the report “Finding the Perfect Partner in the Global Grid Storage Market” is the clear focus on start-up financing and support in the American markets in contrast to the heavy activity in fundamental university research in the Asian markets. This report published by Lux Research outlined the complex grid storage partnership web, including 949 strategic relationships spread among 877 relevant organisations.

Asia is rapidly becoming a hotbed for grid storage innovation due to the massive global capacity of lithium-ion production already present in China and a heavy focus on electric mobility and lithium-ion for consumer electronics.

Furthermore, several notable lithium-ion companies from the U.S. have recently migrated their production to China. Meanwhile, university research and technology parks have been contributing to significant research in molten-salt and flow batteries, most notably supporting the development and growth of flow battery companies Prudent Energy and Rongke Power.

A notable difference between Asia and the rest of the global market is Asia’s stronger involvement in start-ups and universities.

Universities account for 15% of Asia’s network of storage technology developers, compared to only 2% and 4% for Europe and the Americas, respectively. Yet 9% and 11% of Europe’s and the Americas’ networks are made up of start-ups, compared to only 6% in Asia. This trend indicates the disproportionately higher focus and support of university research spinning directly into larger companies for more rapid commercialisation rather than the more grassroots, entrepreneurial approach highlighted so favorably in Europe and the Americas.

4 ASIAN POWER

Why India’s commercial building electricity use is a concern

BY GIRISH GHATIKAR

I

ndia continues to face significant challenges in having a reliable electricity supply. This was manifested in the country’s worst blackout due to the failure of power grids, affecting states where 50% of India’s 1.2 billion people live.

Of all the primary energy sources in India, electricity consumption has been increasing exponentially over the past few decades.

According to an Indian Central Electrical Authority (CEA) report, the projected deficit India in 2013 is 10.6%.

According to the Indian Ministry of Power, India’s electricity demand is projected to reach 1,900 terawatt-hours (TWh) by 2021–2022 and its carbon dioxide (CO2) emissions from coal combustion are projected to reach 3.3 Giga-tonnes (Gt) in 2030—8% of the world total (based on a reference scenario in 2005).

Commercial, residential, and industrial sectors account for 10%, 39%, and 24% respectively of the total 694,392 GWh of electricity consumption in the country. While commercial building sector’s electricity use is a smaller slice of the pie today, this sector posted the third highest Compounded Annual Growth Rate (CAGR) over the past four decades (8.29% as of 2010-11).

This sector, with its increased use of airconditioning, is also contributing heavily to the peak shortage. Which is why there is significant opportunity to make these

India’s electricity demand is projected to reach 1,900 terawatthours (TWh) by 2021–2022.

buildings adopt technologies that will help in addressing the electricity reliability in India.

The Government of India is taking measures to address the ageing grid infrastructure and integrated demand-side management.

The National Action Plan on Climate Change of 2008 outlines National Mission on Enhanced Energy Efficiency with actions for electricity sector reform. The U.S.India Energy Dialogue of 2010 provides mechanism for joint activities to address energy issues and electric grid integration.

By establishing a sustainable buildingsto-grid (B2G) collaboration with the U.S., India facilitates integration of demand-side with the supply-side systems to advance India’s electricity reliability goals.

Such an initiative will motivate Indian electricity markets by disseminating U.S. experiences and technologies for the uptake of Demand Response (DR) pilots in India.

The results could benefit both short -term and long-term DR and energy efficiency integrated action plans for pilots that are being conducted in India, and the transformative technologies for mitigation and adaptation of electricity reliability. The findings from the pilots will aid in creating Smart Grid market transformation and policy interventions through technology demonstrations.

FIRST When solar capacity and demand meet in 2015

O

Check out how Taiwan’s offshore wind market has developed

BY MICHAEL WANG

T

he faith of the public towards nuclear power has been shattered, and renewable energy has now become the new hope of Taiwan as it moves towards a new low-carbon and less-importdependency energy portfolio in the next decades.

Among the renewables, wind and solar energy are considered to be the first-tier resources. Much interest is going toward offshore wind with potential capacity estimated to be at least 6-10 GW in the Taiwan Strait. The government targets 600 MW offshore wind installation by 2020, and some 3000 MW offshore wind energy by 2025. Thus, having the first offshore wind farm has become the priority mission of the country to carry the plan forward.

The Renewable Energy Act The Renewable Energy Act (REA), which was promulgated in 2009, supports offshore wind development by providing the developers with a 20-year off-taking PPA mechanism together with the feed-in-tariff (FiT).

For 2013, the FiT is set at the level of NTD 5.5626/kWh (approximately USD18.8 cents/kWh) and the government aims to remain at this level before largescale deployment.

Apart from the implementation of the REA, the government has also announced a Government Grant Scheme (The Incentive Program of Offshore Wind Power Demonstration System) for demonstration projects by awarding two winners to speed up the deployment of the first offshore

The government targets 600MW offshore wind installation by 2020.

wind farm development in Taiwan.

The two winners will be granted with a US$8 million subsidy for the development costs of the 2-turbine pilot project, a 100200 MW demonstration wind farm, and an interest free financing for up to about US$ 5,300/kW (NTD 159,000/kW) for the CAPEX of the 2-turbine pilot.

By providing this financial support, the government targets to have the first 2-turbine pilot installed before the end of 2015 and the 100-200 MW demonstration wind farm by the end of 2020, and at the same time bring synergy to local supply chains to pursue the business opportunity for up to NTD 500 billion (US$16.7 billion) by 2025.

To date, the government pledges to develop more renewable energy via promoting the plan of “Thousand Wind Turbine Promotion Program” with the implementation of the Government Grant Scheme.

Taiwan Wind Turbines Project

Source: Industrial Technology Research Institute

versupply increased in 2012 as global production capacity rose 10 GW while demand rose less than 3 GW. With capacity 113% higher than demand, 2012 was the hardest year yet for most manufacturers, with inventories building up, prices dropping, and profits only a memory.

Oversupply has led to module prices below cost, especially from Chinese manufacturers.

Using Lux Research’s cost model, Chinese tier-1 module manufacturers sold $0.06/W below cost on average in 2012.

Company earnings calls verify this trend as gross margins for Chinese manufacturers dip close to or below 0%. In Q3 2012, Yingli’s gross margin was -22.7%, LDK’s was -11%, JA Solar’s was -5.9%, Trina’s was 0.8%, and Canadian Solar’s was 2.2%. However, this trend is primed to turn around. The solar installation market grew 10%, a slowdown compared to years past, but still positive considering significant cuts to incentives in key markets.

While growth in 2012 might modest, the higher-thanexpected results paint a rosier future for solar demand than previously estimated, growing to 64 GW in 2018. Meanwhile, more tier-3 manufacturers will go under between 2014 and 2016, especially in China where Lux Research expects the central government to take measures to limit some tier-3 capacity and promote mergers and acquisitions. As a result, overcapacity is pegged to shrink from 113% in 2012 to under 10% in 2015, a sufficient level for upstream manufacturers to increase margins.

OPINION

PETER J. RAE

What hydropower ranking can do for generation expansion

by PETER J. RAE

issues along with other societal benefits as part of the more direct least cost generation expansion planning analysis and financial performance.

This step in the development cycle is extremely important for a private sector investor, who must select a project that has a high probability of success within a reasonable development period. A poor selection can lead to a site that may fail to be developed after expenditure of significant venture capital.

Systems that would like to involve private sector investors in generation expansion will need to have a competent ranking of project available for evaluation. This step is required to enable investors to make a rational selection of how to invest their capital while at the same time being essential to satisfy the requirements of good international practices.

Development protocols such as suggested by the International Hydropower Association recommend that ranking be carried out as the first step in the development cycle.

How not to skew rankings?

6 ASIAN POWER

M

obilization of financing for power sector infrastructure development must be founded on a sound basis of technical, environmental, social, economic and financial principles. In Asia, when considering hydropower development as a key element of the generation expansion, it is extremely important to perform a comprehensive ranking of available projects to select those that can be developed according to industry best practices.

When compared to some other generation options, hydropower development offers challenges due to the nature of environmental and social impacts, the importance of site conditions, reliability of hydrological information, and the dominance of the civil works in construction. Ranking of potential hydropower projects must consider these challenges to arrive at a selection of projects that will be attractive for financing.

A ranking study should also consider the approach used for financing development. While private sector development using project finance is generally considered desirable for power system expansion, few hydropower projects are developed solely by this method. Where projects have been completed the investors involved have been willing to assume many elements of hydropower risk and to place balance sheet commitments to the financing package.

The attitudes of potential private sector investors should be considered as part of the hydropower ranking study, especially with respect to the risks that developers might perceive and the effect that risks would have on investment decisions.

Ranking of hydropower projects is required to properly balance the often competing issues associated with development.

In particular, ranking must weigh environmental and social

The selection process Ideally, before making a selection for development, all projects should be prepared to a similar level so that the ranking is not skewed by assumptions (either optimistic or pessimistic) or poor quality information. This is particularly important in the case of hydrological and geological information, which represent the most important indicators of project revenue and cost respectively.

When dealing with projects on a regional or national perspective, one of the key benefits of hydropower is the possible complementarity among projects that exists due to differences in hydrological influences, reservoir regulation, and other characteristics. Complementarity can result in an increase in the firm energy for the overall system and a reduction in the total installed capacity supplying generation system expansion.

The ranking study must deal with the inter-relationships among hydropower developments to assess the extent to which complementary operation can be used to optimize the selected generation expansion sequence.

The ranking analysis is an essential step in identifying a rational generation expansion sequence for the country. In addition, international best practices for development of hydropower will require that projects are ranked to balance economic and financial issues along with environmental and social impacts.

The objective should be to select projects providing the least impact while meeting minimum economic and financial performance metrics. Capacity building in the procedures for planning according to such international best practice is an important element of achieving a development plan that can be financed.

The ranking studies should be performed while appreciating the requirements outlined in World Bank Operational Policies, Asian Development Bank guidelines, the Equator Principles, and others. Commercial lenders, multi-lateral agencies, and export credit agencies can have a significant influence on the mobilization of financing for the hydropower generation expansion.

In addition, the hydropower industry has attracted significant public attention that affects the ability to mobilize finance.

Accordingly, other documents such as the International Hydropower Association Sustainabilty Guidelines and the World Commission on Dams should be considered during the ranking of projects.

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COUNTRY REPORT: MALAYSIA

Hopes fade for Malaysia to meet renewable energy target by 2015

Malaysia has huge potential but needs adaptation and mitigation strategies to effectively produce safe and renewable energy, say experts.

I

n 2010, Malaysia mapped out a plan to reduce its dependence on fossil fuel by such methods as increasing renewable energy contribution to 5.5% in the national power generation. While the target was full of with good intentions, experts doubt it would be achieved.

According to Syed Shah Alam, an economist at Universiti Kebangsaan Malaysia, Malaysia’s energy consumption is seen to nearly triple to 98.7 metric tons in 2030 from its 2002 levels and experts predicted that Malaysia’s natural gas reserves will be depleted in 70 years. They also expected that with the country’s current usage rate, oil reserves will be used up in about 16 years. The Malaysian Government is fully aware of the need for energy security that it is taking significant changes in itsenergy policy but it is still faced with tremendous challenges.

Eco-Ideal’s Executive Director Soon Hun Yang said that with the Renewable Energy Act enacted in 2010, renewable energy development has steadily improved over the past three years. He warned though that the initial target of 985 MW installed RE by 2015 would not likely be met unless some very drastic measures are taken. He believes that the 8 ASIAN POWER

“Malaysia’s energy consumption is seen to nearly triple to 98.7 metric tons in 2030 from its 2002 levels.”

likely installed capacity by 2015 would be shy of 500 MW. Based on the latest data from Sustainable Energy Development Authority, Soon noted that except solar, the remaining main RE sources are all missing their targets.

Going forward, Soon believes the power industry in Malaysia will continue to face the challenges of volatile global fuel cost and supply. The pressure to reduce government fuel subsidies, he said, will continue to rise, resulting in a potential increase in electricity tariff in the near future.

As a result of rising electricity prices, the need to increase energy efficiency has naturally spiked, as well as a development of alternative energy sources such as renewable energy. However, Soon said that such development trend will rely very much on governance by regulations, systematic implementation, and economic incentives available.

Sabah Malaysia has three different power grids and the power situation varies in these areas. Malaysia’s second-largest estate, Sabah, is currently facing rotating power outages blamed on lack of ample power

investments. According to Anthony Jude, senior advisor and energy practice leader at Asian Development Bank, Sabah has an installed generating capacity of 950 MW of which 450 MW belongs to Sabah Electricity Board (SEB), while the remaining capacity is provided by Sabah Independent Power Producers (IPPs). Sabah, he said, is facing rotating power outages daily due to an outage of an IPP power plant that reduced 95 MW from the grid. He explained that the peak demand is around 840 MW which is close to the installed capacity but with 95 MW not available, the State cannot meet the peak load demand and peak load is also increasing.

The State had planned to build a 200 MW coal power plant in Lahad Datu to meet the increasing power demand but this has been shelved due to strong local opposition.

SEB is planning to increase its reserve margin by 40% by buying electricity from two IPPs, namely Kimanis Power Sdn Bhd and SPR Energy Sdn Bhd, later in the year when they begin operations.

The Kimanis power plant is a 285 MW combined cycle power plant owned by Kimanis Power Sdn Bhd (KPSB) that will sell electricity to SEB through a PPA for

COUNTRY REPORT: MALAYSIA 21 years. Kimanis Power Sdn Bhd (KPSB) is a 60:40 joint venture between PETRONAS Gas Berhad (PGB) and NRG Consortium (Sabah) Sdn Bhd. The three units are scheduled to be commissioned in phases - December 2013, February 2014, and April 2014, respectively.

The SPR Energy IPP project is a 100 MW combined cycle gas power plant in Kota Belud, Sabah that is scheduled to be commissioned in October 2013.

Going forward, Jude said that SEB and Tenaga Nasional Berhad (TNB) will need to plan for the power demand growth in Sabah and how increasing power demand in the State could be met in a timely manner without any supply disruptions. “A mix of IPP-supplied power and SEB-owned based load generation will be needed. On the former, calling for competitive bidding of IPPs would be useful in obtaining better prices and having provisions or flexibility within the PPA contracts for possible extension of contract with the IPPs 21 years to 25 years would be useful if and when SEB cannot have its plants built on time,” he said.

Jude added that IPPs will also need to have clarity on their contracts since they will be investing in the power plants and would also need reasonable returns on their investments. TNB and SEB, he said, need to inform them of what capacity is needed and not ask them to build largersized units and buy only a lower contract amount. Jude cautioned though that this may result in higher prices as IPPs will need to recoup their investments.

Finally, he advised that the Electricity Regulatory Authority should also be strong and independent enough to make decisions without political interference.

The State Government is also seeking Federal Government approval to go ahead with the development of the Upper Padas dam project which could generate 160 MW to 210 MW.

and SEB/SESCO will need to actively engage the affected people especially the Penans to seek an agreement before these projects begin. The livelihood and lifestyle of the Penans need to be recognised and capacity building of these people need to be built into the project design.” Jude added that SESCO will need to learn from past mistakes from the Bakun Hydropower project and improve their dialogue process with the affected people.

With the full operation of Bakun Hydropower Project, gas turbine plants, and the two coal power plants, Jude believes power demand within Sarawak will be met as well as the export of 230 MW to West Kalimantan. He added that additional power can be exported to Sabah via Brunei if the other hydropower plants -Murum, Baleh and Baram-are developed in a sustainable manner. “We believe SESCO has begun looking into this option and has begun discussions with Brunei as the transmission lines will need to traverse through Brunei’s territory. SESCO is in discussion with Brunei of selling 200 MW as Brunei can then export more gas instead of burning it domestically. However, if all the above hydropower projects are completed, Sarawak will not be able to consume all of the power generated and hence discussions with TNB on power exports to Peninsular Malaysia has resumed.”

According to Jude, discussions with The Federal Government have begun as they will need to obtain right-of-way from the Indonesians since three-quarters of the route will be in Indonesian territory.

Federal Government, he said, would also have to provide some sort of support for the private sector to get involved in this interconnection project as the cost could be over $5 billion.

Originally ,the proposed high voltage direct current (HVDC) transmission line

“There is a move to shift away from gas to coal as base load generation but gas plants will be kept for meeting peak load demand. ”

was to transmit 70% of the power from Bakun Hydropower Project to Peninsular Malaysia, while 30% was to be consumed within Sarawak. The HVDC transmission system would have been able to transmit up to 2,000 MW of electricity via two HVDC (676 km) underwater cables and 1,000 km of 500kV overhead transmission lines.

Due to Sime Darby pulling out of the project citing project viability concerns, the Chief Minister of Sarawak decided to fully utilize electricity from Bakun by developing its SCORE’s industrial zone.

This has now been fully subscribed and a number of foreign companies have located to this industrial zone. All of these companies have signed up with SESCO to take up the power.

Jude believes that there is a move to shift away from gas to coal as base load generation but gas plants will be kept for meeting peak load demand. This, he said, is anchored on the fact that SEB/SESCO have started developing coal power plants as hydropower is dependent on rainfall and during the dry season. Moreover, government has started charging market prices for natural gas, instead of selling it at a subsidised rate.

The five new plants include the 600 MW (2x300 MW) Balingian I project; Balingian II (300 MW), Mukah West I (600 MW), Merit Pila in Kapit Division (300 MW), and Mukah West II (600 MW).

Peninsular Malaysia Peninsular Malaysia is covered by TNB. TNB also owns 80% of (SEB) while 20% is owned by the Sabah State Government.

TNB is the largest of three utilities in Malaysia with about 22,000 MW. According to Jude, TNB like SESCO is facing higher generation costs from gas as the government has resorted to increasing gas sales

Sarawak Sarawak has a large hydropower potential of around 24,000 MW and already has a number of large hydropower plants in operation to meet the power demand within its Sarawak Corridor of Renewable Energy (SCORE) industrial zones, said Jude. The largest is the Bakun Hydropower Plant which generates 2,400 MW. It is partly operating and the full operation of the plant will be reached in early 2014. Other hydropower projects under construction are Murum-944 MW, Baleh-1295 MW, and Baram 1 - 1,200 MW. According to Jude, Murum has run into problems as to how SESCO and SEB has handled the social and environmental issues. “Sarawak is rich in hydropower resources but both the State Government ASIAN POWER 9

COUNTRY REPORT: MALAYSIA “Energy efficiency is a lowhanging fruit but is not being tapped.”

for exports and have increased domestic gas prices in phases to reflect full cost of supply. The coal-based IPP plants whose PPAs have ended or will be ending will not be renewed by TNB as these pay contracts were forced upon TNB. Jude said that TNB may have extended contracts of one of the IPPs as TNB examines alternative supply options to meet the growing demand. The government has also begun importing LNG for both industrial and power use. Jude believes that over time Malaysia’s gas imports will increase while exports will decline unless new gas fields are developed.

TNB has entered into an agreement with PLN, Indonesia and PT Bukit Assam to develop a mine mouth coal power plant (1,200 MW) in Sumatra and to export 600 MW to Peninsular Malaysia via HVDC interconnection.

Going forward, Jude said that TNB will need to invest in transmission grid reinforcement to improve the quality of power and reliability of supply. Power quality is becoming more important as more electrical equipment are being used in the industrial zones throughout Peninsular Malaysia, he said. “Besides being sensitive to short voltage fluctuation, the equipment also produce harmonic that can degrade the power quality in the power system. Incompatibility between power supply and the industrial equipment can cause maloperation of customer equipment or degradation in the quality of industrial product.” Jude noted that monetary losses due to power quality problem can be as high as outage problems and this would affect the bottom line of companies.

TNB, he said, is doing its best to address this throughout Malaysia but would 10 ASIAN POWER

require state government’s support to ensure approvals for TNB to proceed with the rehabilitation.

Jude also cautioned that the government needs to take an aggressive action to improve awareness of energy efficiency in all sectors of the economy. “Energy efficiency is a low-hanging fruit but is not being tapped. Building energy efficiency programs, lighting programs both CFL and LED need to be further encouraged.

Setting appliance standards and ratings programs will help bring in appliances that are efficient and prevent inefficient ones from being sold within the country.”

The viable option Sourcing energy from solar and wind could be quite a challenge, said Jude.

“Wind may not be an ideal solution as Malaysia is close to the equator and the wind speeds will not be there. Besides, wind plants are only available for 20% of the year, while solar is around 18%-20%,depending on the sites. Malaysia has a lot of cloud cover and the solar irradiation is not that high as compared to the northern parts of China and India.”

Jude added that Malaysia and most of Southeast Asian countries depend on agriculture -rice, rubber, palm oil, cassava, etc, -hence land will be an issue for ground-mounted solar power plants.

“1 MW solar power plant will require 1 hectare of land. Usually solar plants are around 50 MW to 100 MW. To meet the above target, several of these plants will be required throughout the country.”

According to Jude, solar should be promoted through the residential roof-top program and commercial buildings with net-metering rules coupled with incentives for HHs to invest in solar roof-tops.

Malaysia is rich in hydropower and Jude believes that development of small hydros, not large hydros, would help improve the renewable energy mix. Malaysia, he said, also has a large agriculture waste from palm oil plants that could be used to generate electricity. “Malaysia could learn from Thailand on their very small power producers and small power producers that could help increase biomass-based generation.

There are a few biomass-based plants in Peninsular Malaysia and in Sabah but more could be encouraged with the right policies, regulatory framework, and incentives.”

Why RE fails Soon shared his thoughts on why RE failed to take off. First, project developers especially new players in general have difficulties in securing financing for RE, he said. “In general, financing institutions are not familiar with such projects and will typically rate them as high-risk projects. As a result, unrealistic guarantees are required for such projects.” Secondly, Soon said that many potential projects are located far from development and thus the cost of grid connection is high.

At this moment, the RE developer, he added, needs to bear the cost of these, making projects less attractive. “The grid acceptance of power in low demand area also requires the operator to allow to flow upstream – this is yet to be implemented.”

Third, Soon said that it is a challenge to secure sustainable fuel supply for some RE projects like biomass RE. Typically, the suppliers such as palm oil mills, he said, are not willing to sign long-term contracts. There are also emerging competing use of biomass waste which will further discourage the uses of biomass for power, he added.

Finally, there’s lack of technical experiences. “Both grid operator and project developers are still gaining experiences in implementing RE projects in Malaysia. It is expected that the accumulated experiences will gradually remove some technical barriers faced by some early stage projects going on now,” he said.

Installed Capacity (MW) of Plants in Progress

Source: U.S. Energy information

Risk analysis Multi-stage stochastic hydro reservoir optimization Mixed integer programming unit commitment System operations and real time dispatch Deterministic, Monte Carlo, and stochastic optimization Flexible, intuitive, object-oriented user interface Common database for long and short-term simulations

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OPINION

JOHN GOSS

China’s State Grid moves into deregulated power markets john.goss@ceejay.com.hk

T

he recent acquisitions of power grid assets in Australia

by China’s State Grid Corp of China created a lot of global interest because of the deal’s size. These significant acquisitions will provide the State Grid with first-hand knowledge of how modern deregulated power markets function, which will be of great value to China’s monopoly power transmission company.

State Grid, which owns and operates both high-voltage power transmission and low voltage distribution assets in all but five of China’s southern provinces and administration regions, reported in May that it had agreed to buy 60% of SPI (Australia) Assets. In addition, State Grid took a 19.9% stake in the Australia-listed SP AusNet from the State-owned utility Singapore Power.

It was reported by AusNet that it sold the 19.9% stake for A$824 million, the two deals amounting to US$7.5 billion in total. When questioned by the media, State Grid’s spokesperson did not respond to any questions about the purchases.

AusNet operates Victoria’s state-wide power transmission network, whereas SPI distributes power in the State of Victoria and the Australian Capital Territory. Australia’s State of Victoria is perhaps one the most deregulated and privatized regional power markets in the world.

In a statement posted on its website, State Grid reported that both SPI and AusNet were quality assets with stable profitability that would help to ‘enhance the quality of State Grid’s overseas asset portfolio, and raise State Grid’s international influence and competitiveness’. Before these power grid purchases, State Grid had already bought power transmission and distribution assets in the Philippines, Portugal, Brazil and Australia spending US$5.2 billion since 2009.

These significant investments in Australia and the other countries will provide China’s State Grid with the opportunity to learn both system and market operations in modern power market of multiple distribution companies and end-users, who buy power in a competitive market. This experience will help State Grid for the next phase of power sector reform in China.

According to a 2002 circular on power pricing reform by the State Council, the Chinese Government has the long-term objective of having on-grid tariffs charged by the generators and end-user tariffs determined by market forces. However, the circular said that power transmission and distribution tariffs should continue to be set by the state.

The benefits for State Grid and China The largest benefit to be gained by State Grid from its purchases in Australia will be the opportunity to learn about the functioning of a modern deregulated power market of multiple distribution companies and end-users that purchase power in a competitive market. This learning curve will help to prepare State Grid for the next phase of power sector reforms in China.

The Chinese mainland conducted trials in deregulation of power prices back in 2005, in which it had the power generators compete to sell their output to regional power grid operators. This trial lasted until only the end of that year, and was not

12 ASIAN POWER

implemented beyond the country’s northeast and eastern regional power grids. This cessation of the experiment was halted after they suffered massive losses as power generation capacity shortages resulted in sharply higher selling prices.

However, power demand and supply has now returned to a more balanced, or even a surplus, situation nationwide. This recovery has occurred amid the economic slowdown and sharply lower coal prices that have, over the past year, helped the mostly state-owned power producers return to profitability.

On the Chinese mainland, State Grid owns and operates all of the power transmission and distribution assets under its jurisdiction. However, the deregulated markets overseas usually have separate power transmission and distribution networks that are run by multiple operators, both in the public and private sectors.

Also, in the highly deregulated markets of Australia, Britain, and the United States, many grid operators will compete to sell power to consumers and to large energy users, such as factories who negotiate their supply deals with power generators.

In China, power prices are set by the state, although State Grid and China Southern Power Grid, have created non-price competition among generators by giving priority in their power purchases to generators that are efficient and reduce pollution.

It would seem that purchasing stakes in power transmission and distribution companies in Australia, and other Asian countries, will help China’s State Grid to gain valuable experience in the effective operations of the deregulated markets. This practical experience can only be good for China and Asia as a whole in the coming years.

How should deregulated power market benefit China?

co-published Corporate profile

Alstom takes Asia by storm with HVDC technology See how Alstom has provided breakthroughs in Asian countries through successful HVDC interconnections.

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lstom is a world leader in transport infrastructure, power generation and electrical grid. With its presence in over 100 countries around the world, Alstom has undeniably achieved countless breakthroughs and developed efficient technologies for the production of electricity. With the burgeoning demand for power, Alstom pioneered yet another innovation to meet it.

Alstom is one of the pioneers of the high voltage direct current (HVDC) interconnections and has been providing this technology for 50 years. While high voltage transmission systems can be high voltage AC (HVAC), HVDC is more efficient when transmitting large amounts of power over long distances, and when using energy sources remote from load centres.

The wonders of HVDC One of the benefits of using HVDC is it minimizes the loss in the process of distant power transmission. With less loss, the longest distance lines are HVDC - well suited for long distance transmission from point to point.

HVDC thus allows for efficient transmission of power, connection between asynchronous networks and, in a fixed corridor, increased capacity.

Around two-thirds of primary energy is lost, mainly due to power conversion, and up to 16% of electricity generated never reaches users – it is lost by the networks, like water leaking from a pipe. Using modern HVDC technology to manage connections among the different parts of the system (energy conversion, energy storage, control and power transmission) could help to produce savings

by preventing outages and reducing the space needed to house equipment.

Alstom has developed a global centre of excellence in its facility in Stafford that designs, engineers and delivers HVDC systems all over the world. Alstom is the only HVDC company in the UK that boasts R&D, test facilities, laboratories, design and manufacturing capabilities.

Alstom’s HVDC projects in Asia With the HVDC global market expecting to grow by €50 billion between now and 2020, Alstom is making strategic investments and partnerships around the world. The Group’s high voltage direct current technology has been used worldwide: the Rio Madeira project in Brazil which is the longest HVDC energy system in the world, the South West Link project in Sweden, and soon in Germany with the offshore connection of the Dolwin wind farm.

In Asia, Alstom has built State Grid Corporation of China’s (SGCC) NingdongShandong 660 kV HVDC transmission scheme and its connection had full 2000 MW power for commercial operation. This project has been full of world records: i.e., 660 kV voltage, single 12-pulse bridge per pole, large

“Alstom is one of the pioneers of the high voltage direct current (HVDC) interconnections and has been providing this technology for 50 years.”

cross section line of 1000 mm, transmission distance of 1335 km, and a centralised control and protection system. Alstom also worked on a €400-million contract with Power Grid Corporation of India to connect Champa (State of Chhattisgarh), Central India, to Khurukshetra (State of Haryana) in Northern India, using ±800 kV 3,000 MW Ultra High Voltage Direct Current (UHVDC) technology. This advanced UHVDC system met the bulk power transfer requirement from Chhattisgarh region - a hub of Independent Power Producers of thermal power - to the load centre located in the northern region of the country, through a 1,365 km transmission line, creating an “energy highway” of clean, efficient power.

In Korea, Alstom Grid has been working with Korea Electric Power Corporation (KEPCO) since 1997 on the two HVDC reference schemes in Korea. Recently, the two companies embarked on a joint venture that will focus on delivering HVDC projects in Korea. The KEPCO Alstom Power Electronics Systems (KAPES) aims at increasing Korean transmission grid capabilities based on Alstom technology. The joint venture is implemented with a shareholding of 49% for Alstom and 51% for KEPCO. HVDC MaxSine Another innovation for the power industry is Alstom Grid’s HVDC MaxSine®. This technology is the ideal solution for offshore wind farms where high platform costs demand a compact site area and the distance offshore is greater than 40 km; underground cable transmission when overhead lines may be prohibited; and weak AC networks which cannot accept a converter such as line-commutated converter without significant additional equipment, such as a STATCOM or synchronous compensators, among others.

Following Alstom’s success in the 1990s in developing a voltage source converter for reactive power applications (STATCOM technology) using Gate Turn Off Thyristor (GTO) devices, the company now uses Insulated Gate Bipolar Transistor (IGBT) as the switching device for this new generation of VSC technology which can be used for both real power (HVDC) and reactive power (FACTS) applications.

Alstom sees that the 21st century will see DC coming back into favour. Modern DC systems can transmit up to five times more power across the same pylons and lines as AC systems.

Given the increasing difficulties in obtaining permission for power lines in both urban and rural areas, HVDC may be the only solution for increasing capacity.

ASIAN POWER 13

co-published Corporate profile

Industrial internet fuels smarter power See how the development of the industrial internet makes installed assets smarter by integrating minds and machines.

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he old adage about “knowledge is power” has never been more relevant than it is for today’s energy industry. In the power industry, the advent of the Industrial Internet is bringing into sharper focus the concept of using massive amounts of data to enable power producers to squeeze more productivity, value and flexibility out of their existing equipment.

More than ever, there is a need today for data to enable power producers to make faster, smarter decisions about the way they operate their power plants. This need is well served by the development of the Industrial Internet, which integrates minds and machines to make installed assets smarter.

A New Era of Innovation “The world is on the threshold of a new era of innovation and change with the rise of the Industrial Internet. It is taking place by the convergence of the global industrial system with the power of advanced computing, analytics, low-cost sensing and new levels of connectivity permitted by the Internet. The deeper meshing of the digital world with the world of machines holds the potential to profoundly transform the global industry, and in turn many aspects of our daily lives, including the way many of us do our jobs,” said Karl Fessenden, vice president – Power Generation Services for GE Power & Water.

“These innovations promise to bring greater speed and efficiency to our power generation industry, as well as aviation, rail transportation, oil and gas development and health care delivery. It holds the promise of stronger economic growth, better and more jobs and 14 ASIAN POWER

rising living standards, whether in the U.S. or China, in a megacity in Africa or in a rural area in Kazakhstan,” Fessenden added. Three key elements embody the essence of the Industrial Internet: • Intelligent machines – New ways of connecting the world’s myriad machines, facilities, fleets and networks with advanced sensors, controls and software applications • Advanced analytics – Harnessing the combined power of physics-based analytics, predictive algorithms, automation and deep domain expertise in material science, electrical engineering and other key disciplines required to understand how machines and larger systems operate • People at work – Connecting people, whether they are at work in industrial facilities or elsewhere, at any time to support more intelligent design, operations and maintenance, as well as higher quality service and safety The Industrial Internet starts with embedding sensors and other advanced instrumentation in an array of machines from the simple to the highly complex. This enables the collection and analysis of an enormous amount of data, which can be used to improve machine performance

“GE believes there is approximately $150 billion of waste in the industries it serves that can be addressed through new service offerings.”

and inevitably the efficiency of the systems and networks that link them. Even the data itself can become “intelligent,” instantly knowing which users it needs to reach.

This marriage of machines and analytics offers the potential for widespread benefits.

GE estimates the technical innovations of the Industrial Internet could be directly applied in industrial sectors accounting for more than $32 trillion in economic activity.

One area where the power of the Industrial Internet is certain to have a significant impact is in the power plant services sector. GE believes there is approximately $150 billion of waste in the industries it serves that can be addressed through new service offerings, from fuel efficiency to asset utilization. For example, a one percent increase in fuel efficiency across the world’s combined-cycle gas turbine fleet would generate an annual savings of $4.4 billion for its customers. Extending maintenance intervals 10 percent across this global fleet of turbines can deliver another $1 billion in annual savings.

Industrial Internet with Power Generation “Today, our services business supports customers who are operating their power plants much differently from the way they expected to when they first purchased their assets,” Fessenden said. “During the last gas turbine bubble, from 1998 to about 2003, there was significant growth in natural gas-fired turbines. These assets now are more than 10 years old and factors including deregulation and integrating renewable power to the grid have placed a new demand on machines for more flexible operation, along with high efficiency and reliability.”

This environment demands enhancements and upgrades to these gas turbines, as power producers seek to extract more value and performance from their existing assets. For years, GE has been collecting data from the world’s largest installed fleet of gas turbines.

“By interpreting the vast repository of ‘intelligence’ at our disposal, we now have a deeper and more comprehensive understanding of how our customers need to operate their machines. This data is the foundation for many of the new service solutions and products we are developing to satisfy our customers’ most urgent requirements and to create more value for them,” Fessenden noted.

GE’s FlexEfficiency* Advantage Advanced Gas Path (AGP) solution, which improves gas turbine performance and operational flexibility, is an example of how data can be used to

co-published Corporate profile design new products or enhance existing technology to meet changing customer needs.

GE engineers, armed with millions of hours of turbine operating data, developed the AGP solution to deliver more output, operational efficiency and availability to the grid for its gas turbine customers.

AGP upgrade technology lies at the heart of GE’s FlexEfficiency Advantage. This advanced hardware is complemented by a platform of software technology called OpFlex* solutions to broaden the operating range of installed gas turbines with performance improvements in output and fuel efficiency. This solution also enables customers to benefit from longer maintenance intervals and lower lifecycle maintenance costs by extending gas turbine asset and part life.

Putting “Big Data” to Work Since installing its first heavy duty gas turbine in 1949, GE has amassed more than 25 terabytes of OEM engineering data, plus more than 93 million hours of real-world operating data. Access to huge amounts of data, complemented by the expertise to interpret this information, plays a pivotal role in GE’s services business delivering customized solutions to customers that have disparate operational needs.

Data analysis helps lay the foundation for designing not only integrated product and service solutions, but also individual components of those solutions such as nextgeneration gas turbine parts. The amount of experience and knowledge available today can translate into parts that often are able to perform longer and more effectively than the original gas turbine components they are replacing.

For example, GE’s new AGP stage one turbine buckets, nozzles and shrouds are designed for reliability and better performance, while achieving longer maintenance intervals (32,000 hours vs. 24,000 hours) compared to the previous generation 7F 3-series hardware.

These upgrades, combined with further improvements to the rest of the system, help to reduce overall life cycle costs of ownership by enabling the plant operator to skip an entire hot gas path inspection.

As the power of fleet-wide operational data analysis becomes increasingly apparent, customers are beginning to realize more fully how data gathered by GE can benefit them.

Performance information collected via remote monitoring and diagnostics is quickly analyzed and converted into useful reports, including recommendations on operating parameters.

In addition, GE’s MyFleet* plant performance monitor provides customers with access to key plant performance data, and shows them how their equipment is performing against their peers in the industry.

“By studying vast amounts of real-time

performance data, we are able to understand how customers are running their machines and use that knowledge to look into the future,” according to Fessenden. “For example, there are instances when we can give our customers advance alerts when operating trends indicate the need for maintenance may be approaching, rather than simply relying on traditional maintenance cycles, thus heading off potential problems. Often, serious problems that might result in outages and lost operational time can be addressed and resolved before they impact plant performance.”

Success Stories A real-world example of how GE is tapping into Industrial Internet capabilities to help customers’ power plants perform with more efficiency and predictability is Korea Southern Power Company (KOSPO), South Korea’s largest electric utility. KOSPO installed AGP technology on six 7F 3-series gas turbines at its Shinincheon plant to support the region’s population growth and economic expansion.

The upgrade has resulted in total incremental output of 130 megawatts (MW), plus reduction in NOx from 20 ppm to 9 ppm. The additional capacity also is playing an integral role in ensuring the region’s grid stability by elevating its reserve power margin, which had dipped as low as 4% during peak demand periods.

By applying data analytics to millions of hours of 7F gas turbine fleet operating data, GE developed the AGP solution which makes

“The Industrial Internet holds the potential to drive the next wave of innovation for the world by pushing even further the boundaries of minds and machines.”

customer assets like KOSPO’s smarter and more adaptable to their operating environment.

Another example of how GE is applying its data intelligence to customize a customer solution is the Emirates Aluminium (EMAL) smelter complex in Abu Dhabi. An expansion project of EMAL’s facility will include upgrades to existing gas turbine assets that is expected to result in lower emissions through installation of GE’s Dry Low NOx 2.6+ (DLN) combustion technology. This technology will help position EMAL to support the UAE’s goal to achieve cleaner and more efficient industrial growth.

DLN 2.6+ upgrade technology was developed by analyzing millions of hours of operating data from various GE sources including its Monitoring & Diagnostics Center in Atlanta, GA, and Combustion Testing Lab in Greenville, S.C. The DLN 2.6+ combustion system also incorporates advanced controls technology that helps enable customers like EMAL to lower emissions and operate more flexibly.

Pushing Boundaries The potential impact of Industrial Internet technologies spans almost half of the global economy and more than half of the world’s energy. In a host of industries including power generation, linking intelligent devices facilities, fleets and networks with people at work or on the move will offer new possibilities in process optimization, increased productivity and efficiency.

“Innovation has always been the single most powerful ingredient to help us create more with less, to ease constraints, to help improve living standards for larger and larger numbers of people. The Industrial Internet holds the potential to drive the next wave of innovation for the world by pushing even further the boundaries of minds and machines,” Fessenden concluded.

ASIAN POWER 15

Rick Truscott Director - Generation, CLP Power Hong Kong 16 ASIAN POWER

CEO INTERVIEW

CLP Power strives to be more eco-friendly, reduces over 80% of primary emissions Power sector is no longer the major source of pollution in Hong Kong in 2011 and CLP is claiming some glory for this development.

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ccording to the 2011 Emissions Inventory released recently by the Environmental Protection Department of Hong Kong SAR Government, the power sector is no longer Hong Kong’s major air pollution source. Emissions from road transport and navigation are now the largest sources. In an interview with Asian Power, CLP Power Hong Kong Director - Generation, Rick Truscott said that the company’s emissions reduction efforts have positively contributed to improving Hong Kong’s air quality. He noted that CLP has established a strategic climate change policy about ten years ago. It has proactively taken measures such as bringing in zero-emissions nuclear power and natural gas fired power generation.

Additionally, it has taken significant environmental measures to minimize emissions of coal-fired power generation. These include the installation of electrostatic precipitators to remove particulates, initiated the use of ultra-low sulphur coal, and retrofitted its largest coal –generating units with large-scale desulphurisation and nitrogen oxide reduction equipment.

Truscott boasts that the results of these measures have been significant where over 80% of CLP’s primary emissions were reduced over the last 20 years in spite of increasing electricity

“A diversified energy mix is definitely critical in maintaining a reliable, clean and reasonably priced electricity supply to our customers.“ production by more than 80% for the people of Hong Kong.

Read on and find out more about its latest projects.

1. With power generation under your supervision, how does the company maintain a diversified mix of nuclear, natural gas and coal so as to avoid over-reliance on any one source?

A diversified energy mix is definitely critical in maintaining a reliable, clean and reasonably priced electricity supply to our customers, 80% of Hong Kong’s population. In years past, electricity demand grew significantly and it was relatively easy to establish a diverse portfolio to manage the various risks.

In the early 1990s, we were able to add nuclear power, hydro power and natural gas at our Black Point combined cycle facility due to the significant demand growth in Hong Kong at that time.

In fact, our diverse portfolio has enabled us to reduce our emissions by more than 80% while increasing our electricity production by more than 80% over the last twenty years.

In the future, we will continue to adopt a prudent fuel strategy which addresses supply reliability, environmental impact and fuel costs. To meet the Hong Kong government’s increasingly stringent emissions requirement, we will need to bring in more natural gas. We will strive for diversity by establishing different gas sources. For example, we will source gas from potentially three different sources. The three sources include offshore gas fields in the South China sea, a new gas pipeline from the mainland and then finally from liquefied natural gas facilities in the Pearl River Delta area.

2. Can you tell us more about the Second West-East Gas Pipeline project in Hong Kong? What was the major progress

since its approval in 2012?

With the depletion of Yacheng gas field which is currently the sole source of gas supply of CLP, we have been working hard to secure additional gas sources as set out in the Memorandum of Understanding between the Hong Kong SAR Government and the Central Government in 2008. Among the three, the Second West-East Gas Pipeline (WEPII) is the earliest available source.

The Second West to East Gas Pipeline is actually a gas supply system with approximately 9,000 km of pipeline which includes a main branch line of approximately 5,000 km from Turkmenistan through China to Hong Kong. The different gas properties and geographic location have required significant new infrastructure. The new infrastructure includes: A gas compression station at Dachan Island in Shenzhen and a 20 km undersea pipeline connecting Dachan Island and the Black Point Power Station; a new gas receiving station at the Black Point Power Station (BPPS) to prepare and process the new gas for our gas turbines; and modification of power station plant equipment in order to use the new gas and ensure the long-term operability of the generation units, because of the different properties of the new gas.

With the concerted efforts of CLP and our business partners, construction of the 20km subsea pipeline and the new gas receiving station have been completed. Modifications to the eight gas-fired generation units are scheduled for completion the third quarter of 2013. The WEPII gas has completed its tests and is being used to generate electricity on a regular basis at Black Point Power Station.

3. Bringing in and using a new source of gas cannot simply be done at the flick of a switch. How did you deal with complex engineering works?

The new gas is different than the existing gas in that it has a higher energy content. Accordingly, the highly sophisticated gas turbines must be modified and retuned to efficiently use the new gas. Additionally, the gas infrastructure was required to connect to the different source of gas thousands of kilometres away. Some of the biggest challenges of the project were to construct new gas facilities and retrofit the existing equipment without impact on the continuous gas plant operation, which currently contributes about 20 per cent of CLP’s electricity supply.

The simultaneous construction of the new facilities with a minimum of disruption to the continued operations of the existing equipment was a complex exercise requiring very high levels of coordination between design, operations and construction groups. Site space restrictions and the simultaneous operations and erection of new facilities presented a number of challenges. However, at all times construction and operational safety was the highest priority.

Considerable effort and a combination of established and tailored work practices and controls were implemented to maintain a very high standard of safety throughout the construction.

In addition, the gas turbines were also required to be retrofitted to enable a fuel quality management system that adjusts the combustion properties of the fuel in real time.

Two units of the plant will also be enhanced with facilities that ASIAN POWER 17

will blend gas from the Yacheng pipeline with gas from the new pipeline in controlled ratios and send the mixed stream to the gas turbine. These upgrades will enable BPPS to operate efficiently not only with the new gas from WEPII, but also with a broad portfolio of future gas sources that could range from LNG to other offshore pipeline gas.

This indeed presents a new benchmark in operational flexibility for multiple fuel gas sources at a gas-fired power station. Apart from the engineering works inside power plant, bringing WEPII gas to Hong Kong also involves laying the 20 km subsea pipeline of WEPII which links Dachan Island off Shenzhen to the Black Point Power Station crossing the region’s busiest navigation channels and in the vicinity of an anchor zone and existing pipeline which is transporting gas to Black Point Power Station.

All these complexities present great challenges to the whole team to ensure the project to be completed safely, timely and in compliance with all regulatory requirements of different authorities.

4. How is the Project going to benefit your consumers?

The project allows the people of Hong Kong to first of all enjoy the environmental benefits with increased gas-fired generation as well as ensuring that fuel diversity is maintained in terms of diversity of fuel sources.

As the technological options in Hong Kong are reduced in the future by the regulatory requirements to increase the use of natural gas, the best way to maintain fuel diversity is by sourcing gas from different geographical locations.

18 ASIAN POWER

The new gas will replace the depleting Yacheng gas field and supplement additional future gas sources to enable CLP to sustain gas-fired power generation and to meet emissions targets set by the government for 2015 and 2017, while maintaining a reliable electricity supply.

5. Currently, you have 5 power generation stations. Can you share some of the challenges in running these stations?

CLP currently operates three power stations in Hong Kong, namely the coal-fired Castle Peak Power Station (CPPS), gasfired Black Point Power Station (BPPS) and the oil-fired Penny’s Bay Power Station (back-up usage). Nuclear power is imported from the Guangdong Daya Bay Nuclear Power Station in China.

In the short term, the biggest challenge is to ensure smooth operation with new gas from WEPII to maintain a reliable power supply. In the longer run, we are facing the challenges of meeting tighter regulatory requirements on power plants’ emissions that require substantial increase of gas usage which inevitably puts pressure on electricity tariff.

To mitigate the impact of rising fuel cost, we are working hard to optimise the use of remaining gas of existing gas field which was contracted 20 years ago and cost lower than the new gas supply, and the technical performance of emissions control equipment of our coal-fired power plants while simultaneously maintaining the power plants as they mature.

All these complexities present great challenges to the management and operation of power generation.

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The POWER-GEN Asia conference has become the major annual platform for the industry to discuss the topics and issues of today and is regularly contributed to with keynote speeches from Government Ministers and Governors of the region’s utility companies.

JOINT OPENING KEYNOTE SESSION – WEDNESDAY 2 OCTOBER 2013 – 9AM • Dr. Twarath Sutabutr, Deputy Director-General, Department of Alternative Energy Development and Efficiency, Thailand • Governor of Electricity Generating Authority of Thailand, Thailand • Dr. Piyasvasti Amranand, Chairman, Energy for Environment Foundation, Thailand • Mr. Markus Lorenzini, Head of Energy Sector, ASEAN Pacific Cluster, Siemens, Indonesia TOPICS DISCUSSED AT THE CONFERENCE INCLUDE: • Trends, Finance & Planning

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Department of Alternative Energy Development and Efficiency

co-published Corporate profile

India’s biggest power transmission & distribution expo comes up with the theme “Go Global” Indian Electrical and Electronics Manufacturers Association’s vice-president Raj Eswaran throws light on the high growth perspective of India’s power sector and the ensuing ELECRAMA - 2014.

of around 6.5 billion people. However, electrification in these countries is barely 30% which means there is scope of the rest 70% to get electrified.” With increasing trade between India and African countries gaining momentum over the years, Eswaran sees a large untapped opportunity for electrical equipment exports which led to the forthcoming ELECRAMA 2014 event carrying the message of “Go Global’.

Raj Eswaran, Vice-President Indian Electrical and Electronics Manufacturers Association

I

ndia has world-class power equipment manufacturers but it has been slow to realize the benefits of capturing a share of the robust global trade in electrical equipment.

Global trade in electrical equipment was US$540 billion in 2011 but India’s share was only less than 1% at US$4.6 billion in 201112, signifying a huge export opportunity for Indian manufacturers of electrical equipment waiting to be tapped, said Indian Electrical and Electronics Manufacturers Association (IEEMA) vice-president Raj Eswaran. It is in this light that IEEMA officials and senior leaders of the industry are hosting once again ELECRAMA, which is billed as the world’s largest electrical transmission and distribution exhibition showcasing India’s manufacturing capability and strengths to the global community.

“The world, including the USA, is realizing the capability of Indian electrical products and has started sourcing our products for their labs to cater to their requirement. Several top global capital goods players such as Alstom T&D India, General Electric, Siemens, ABB, Areva, BHEL and many other from Projects already have a presence in India catering largely to the

20 ASIAN POWER

domestic market in a big way,” said Eswaran.

Although, India’s overall growth has tapered in the last couple of years, Eswaran said that demand for electrical equipment products is likely to remain firm on the back of the government’s thrust to achieve an energy surplus. Despite stiff competition in the sector, one can still expect global capital goods players’ interest in the domestic electrical equipment industry, he added.

According to Eswaran, Africa is a new export market for India’s electrical equipment sector.

The continent is India’s fourth largest trade partner with bilateral trade expected to reach $100 billion by 2015 after India’s investment in Africa exceeded $35 billion in 2011.

“The growing business traction between the two can be gauged from the fact that India has extended 150 lines of credit worth $5.2 billion to African countries. Africa has about 54 countries with a combined population

“ELECRAMA 2014 is poised for a quantum leap.”

New event experience According to Eswaran, the expo is poised for a quantum leap in terms of event experience, ambience, context, commerce and is moving to the newest and world-class exhibition location in the country – Bangalore International Exhibition Centre (BIEC) in Bangalore, India. In order to overcome the space constraint, the 11th biennial event will be held at BIEC, which has 40,000 sqm of covered column-less airconditioned exhibition space spread over 34 acres compared with the 33,370 sqm of area in the previous ELECRAMA event held in Mumbai in 2012.

In order to meet the challenges, a multifacility conference centre spread over 5,600 sqm including four Conference Halls, a Helipad, an Amphitheater, VIP Lounge, Food Court of 7,500 sqm, a Machine Tool Training Centre, and large outdoor area is being arranged. It also has an infrastructure to distribute 11 MW of power supply. It has been able to cater to well over 20,000 business visitors per day on several exhibition days.

“Since the beginning of this event, we have been seeing the number of visitors, both domestic and international, participating in a big way. In 2014, (January 8-12), we are expecting more than 100,000 footfalls and over 800 exhibitors participating in Bangalore” said, Eswaran. ChangeXchange 2014 – 2nd Reverse Buyer-Seller Meet (RBSM) at ELECRAMA-2014 will again be organised by IEEMA at a much larger scale. IEEMA claims that ChangeXchange 2014 will be the biggest meeting place of foreign buyers who plan to source electrical products and equipment from India.

In order to give a first-hand experience of India’s strengths in electrical products and technology to foreign buyers, IEEMA hosted its first Reverse Buyer-Seller Meet (RBSM) in ELECRAMA-2012 with support from the Department of Commerce, Ministry of Commerce & Industry and Government of India.

Supported by Ministry of Power Department of Heavy Industry (DHI), Ministry of Heavy Industries & Public Enterprises Ministry of Commerce & Industry (for RBSM) GOVERNMENT OF INDIA

THE WORLD’S LARGEST POWER TRANSMISSION & DISTRIBUTION EXHIBITION IS BACK

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WHY ELECRAMA ELECRAMA-2014, the ultimate power packed platform where business meets technology is now evolving to a new orbit. ELECRAMA-2014 will play out in India’s favoured destination for new age businesses, science and technology, R&D and innovation - Bangalore International Exhibition Centre (BIEC), Bangalore.

BIEC is a 34 Acres campus of more than 65,000 sq.mts of air conditioned space, a dedicated convention centre, a grand food court, VIP lounge, dedicated world class amenities and a grassy lawn. Now power play gets a new playground.

WORLD CLASS EXHIBITION ELECRAMA-2014, is the Global interface into the US$ 500 billion opportunity offered by the Indian power expansion programme. ELECRAMA-2014 expects a footfall of over 1,25,000 visitors and 1,000 exhibitors

TECHNOLOGY EXCHANGE International technology conferences and events with global participants. ELECRAMA-2014 will feature two international conferences: > INTERNATIONAL T&D CONCLAVE > TRAFOTECH - Intl Conference on Transformers

THRIVING BUSINESS THE A TO Z OF POWER T&D EQUIPMENT & MORE ON DISPLAY Cables & Accessories Electrical/Electronics Components Indl. Control & Automation Motors Stampings & Laminations

Capacitors Energy Meters Instrument Transformers Power Electronics Switchgear & Controlgear

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OPINION

PHILLIP VAUGHAN

How Asian power facilities can ride on the energy revolution

by PHILLIP VAUGHAN Director, Utilities Industry at SAP Asia Pacific-Japan

R

evolution is a U.S. television series that takes place in a post- apocalyptic dystopian future. A new technology is developed by the U.S. Department of Defense to disarm opponents in the battlefield. The technology is capable of nullifying electricity systems and self-multiplying.

After being deployed as a weapon, it quickly spreads out of control and disables all the electricity systems on Earth in a single day. In a world without electricity, governments collapse along with the public order, and many areas are taken over by warlords and militias.

The story falls into a genre of fiction where the present day suddenly becomes a frightening new place for its inhabitants to navigate. However, is the premise so far-fetched? Could a new technology be deployed that would spread out of control, playing havoc with and wrecking electrical infrastructure?

Actually, such a technology does exist and is being deployed as you read this essay. It is called renewable energy and it is having a devastating effect on the electrical transmission and distribution systems across the planet.

It takes the form of wind or solar energy either produced from commercial scale farms or by consumers themselves. This is gaining an importance as a significant part of the overall energy mix. For example, China has doubled its installed wind power capacity every year for the past five, and is on pace this year to supplant the United States as the world’s largest market for new installations.

Moreover, researchers from Harvard University and Beijing’s Tsinghua University suggest that the Chinese wind power industry is far from its peak potential. According to their meteorological and financial modeling, reported in the journal Science, there is enough strong wind in China to profitably satisfy all of the country’s electricity demand until at least 2030.

Unlike conventional power facilities, these renewables can only run in the right conditions, and not necessarily when needed. Wind has to blow fast enough, but not too fast, in order to generate power. Generally, it can provide power from between 7% and 40% of the time, depending on the site and other factors.

However, often there is too much power in the system. Last October, Bloomberg reported that Germany was dumping electricity on its neighbors. Central and Eastern European countries were moving to disconnect their power lines from Germany’s during the windiest days, when they get flooded with energy.

Renewable energy around the world is causing problems, because unlike oil it can’t be stored, so when generated it must be consumed or risk causing a grid collapse.

At least commercial farms can be monitored and controlled by existing EMS and SCADA systems by transmission operators.

What the existing systems cannot do is to predict with any level of confidence what the output of wind power will be 24 to 48 hours in advance.

New systems have to be installed to support this kind of forecasting. Forecasting the output is critical, as it determines when to fire up the large fossil plants to support days when the wind is either going to blow too strongly or not at all, or as in the case of photovoltaic, when the cloud is present and blocks the sun.

22 ASIAN POWER

So a key problem then is how to optimize production scheduling for conventional power plants. Ideally, you would take a plant offline for maintenance shutdown, when certainty of renewable resources is high.

There is an ancillary problem also being discovered by distribution companies. Not only are their systems in danger of occasionally collapsing, but more prevalent is the added wear and tear on components, which is increasing maintenance costs and reducing grid reliability.

One way to address this problem is to use sophisticated forecasting techniques and measure the load across all the components of the grid. In this way the maintenance tasks can be prioritized. This however is a significant computational effort that usually takes weeks to produce a prediction.

This problem is being solved by high performance in memory computing, which can render load forecast results in minutes rather than days.

This then allows the condition in the grid to be monitored in as close to real time as possible and remediation can be taken far earlier before critical situations lead to collapse.

Companies like Alliander of the Netherlands, and Hydro One of Canada are in the early phases of adopting these technologies to minimize disruption and reduce maintenance costs.

This takes us one step closer to reducing the pain and in turn realizing the benefits of the renewable energy revolution.

Have you heard of new systems to forecast wind power output?

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