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Innovative power projects and initiatives recognised at the
Innovative power projects and initiatives recognised at the Asian Power Awards
The Asian Power Awards is back for the 17th year to once again recognise ground-breaking projects and trailblazing initiatives in the power sector in Asia. Dubbed as the Oscars of the power industry, the Asian Power Awards is the sector’s most prestigious awards programme.
With the continuing climate crisis and growing demand for renewable energy, industries are shifting their focus on the development of a more sustainable business model. This paradigm shift has resulted in innovative solutions, and this year, the programme has awarded 54 outstanding power companies for their successful initiatives.
The esteemed panel of judges for this year’s nominations consisted of Mike Thomas, Partner at The Lantau Group; Wen Bin Lim, Director, Asia Pacific Renewable Sector Lead at KPMG Advisory; John Yeap, Partner at Pinsent Masons; Petteri Harkki at Regional Director for Asia at AFRY; and Gervasius Samosir, Partner at YCP Solidiance.
Awards presentations was held virtually from 12 November 2021.
Congratulations to the winners!
ASIAN POWER AWARDS
Battery Storage Project of the Year
• Gold - Highlights, Status and Future of Taipower’s Kinmen Smart Grid and
Energy Storage System by Taiwan Power Company • Silver - Utility-Scale Energy Storage Systems by DEWA • Bronze - Community Energy Storage System by TATA Power
Biomass Power Project of the Year
• Gold - Absolute Clean Energy PLC (ACE) Thailand Biomass Plant by Metito • Silver - Integrated Palm Waste Management Facility (IPWMF) by BAC Biomass (Kg Gajah) Sdn Bhd • Bronze - North Negros BioPower, Inc.
Coal Power Project of the Year
• Gold - Jawa 7 Coal-Fired Power Plant by PT Shenhua Guohua Pembangkitan
Jawa Bali • Silver - Jawa - 9&10, 2 x 1000 MW OECD-Class USC CSFPP by PT Indo Raya
Tenaga • Bronze - Sujin Energy Shuozhou by Emerson
Corporate Social Responsibility Initiative of the Year
• Bangladesh - 114 MW HFO Fired Power Plant by Feni Lanka Power Limited • India - Project Pragyan – a Sterlite EdIndia Foundation (SEF) Initiative by Sterlite
Power Transmission Limited (SPTL) • Indonesia - Documentation of Pempek Bakar Program Community for Waste to Energy by PT PLN (Persero) Kantor Pusat • Philippines - Microenterprise Program for Tugbo Women’s Organization by
DMCI Power Corporation
Dual Fuel Power Plant of the Year
• Gold - CLP’s D1 Combined Cycle Gas Turbine Power Project at Black Point
Power Station by CLP Power Hong Kong Limited • Silver - Husk’s Chanpatia Project: 100% Renewable with PV, Biomass by Husk
Power Systems • Bronze - Gas Engine Power Plant Bangkanai (Peaker) Stage 2 (140 MW), PT
PLN (Persero) by Consortium of PT. PP (Persero) Tbk - Wartsila
Environmental Upgrade of the Year
• China - Technical Insight of TAIHAN 550MW Aqua-PV Farm in Wenzhou China
Chint Solar (Zhejiang) Co., Ltd • Indonesia - Jawa - 9&10, 2 x 1000 MW OECD-Class USC CSFPP by PT Indo
Raya Tenaga • Vietnam - Vu Phong Energy Group - Lac Long, Vietnam by PROINSO
Fast-track Power Plant of the Year
• Gold - Jawa 7 Coal-Fired Power Plant by PT Shenhua Guohua Pembangkitan
Jawa Bali • Silver - Safety-Related Enhancement of Tank Seismic Capacity at the Maanshan
Nuclear Power Plant by Taiwan Power Company • Bronze - Proton Commercial & Industrial (C&I) Solar Project by MFP SOLAR
SDN BHD
Flexible Gas Power Project of the Year
• Gold - CLP’s D1 Combined Cycle Gas Turbine Power Project at Black Point
Power Station by CLP Power Hong Kong Limited • Silver - Relocation of Gas Power Plant to Support the Blackstart System of
Coal-fired Power Plant Punagaya 2 X 125 MW by PJB Services
Gas Engine Combined Cycle Power Project of the Year
• Gold - Lombok Gas Engine Combined Cycle (Peaker) Power Plant (130 - 150 MW), PT PLN (Persero) by Consortium of PT. PP (Persero) Tbk Wartsila
Gas Power Project of the Year
• Gold & Hong Kong - CLP’s D1 Combined Cycle Gas Turbine Power Project at Black Point Power Station by CLP Power Hong Kong Limited • Silver & Malaysia - Project Melaka by Edra Energy Sdn Bhd • Bronze & Taiwan - The Datan Combined-Cycle Power Plant Expansion
Project – Unit 7 Combined - Cycle Power Plant Addition by Taiwan Power
Company • China - The First SGT 8000H Gas Turbine Power Plant in Commercial
Operation in China by Huadian Fuxin Guangzhou Energy Co.,Ltd,
Geothermal Power Project of the Year
• Gold - 1 x 85 MW net Geothermal Power Plant by PT. Supreme Energy
Muara Laboh • Silver - PT Indonesia Power Kamojang POMU - 375 MW by PT PLN (Persero) – PT Indonesia Power
Hydro Power Project of the Year
• Gold - Hatta Pumped Storage Hydro Power Plant, 250 MW by EDF
Renewables Middle East • Silver - Lower (Aşağı) Kalekoy Dam and HEPP by Kalehan Genc Enerji
Uretim A.S. • Bronze - PLTM Sampean Baru by PJB Services
Independent Power Producer of the Year
• India - The Tata Power Co. Ltd. • Indonesia - PT. GH EMM INDONESIA • UAE - ACWA Power
Information Technology Project of the Year
• Indonesia - Digital Power Plant Program - Automatic Failure Detection by
PT PLN (Persero) - PT Indonesia Power • Maldives - The Residence Falhumaafushi Photovoltaic Plants - Maximum
Inverter Power Tracking Technology by DHYBRID Power Systems GmbH • Pakistan - KE Live App – A Consumer Centric Journey by K Electric • UAE - AI Based Distribution Asset Criticality Ranking (DACR) by DEWA
Innovative Power Technology of the Year
• Bangladesh - 114 MW HFO Fired Power Plant by Feni Lanka Power Limited • India - Conversion of Hydrogen Generation Plant at 2x600 MW RGTPP,
Khedar, Hisar by Haryana Power Generation Corporation Limited • Indonesia - Simpang Belimbing Coal Fired Powerplant by PT. GH EMM
INDONESIA
• Korea - Korea Southern Power Co., Ltd (ShinIncheon Power Plant) by
Emerson • Malaysia - TNB Integrated Learning Solution by Tenaga Nasional Berhad (TNB) Centre of Excellence for Solar Energy • Philippines - South Negros BioPower, Inc. • Thailand - BIC Cogeneration Power Plant Cooling Tower Optimization by
CK Power Public Company Limited
Power Plant Upgrade of the Year
• Hong Kong - Castle Peak Power Station Turbine Control, Protection &
Mechanical System Upgrade Project by Emerson • India - Adhunik Power and Natural Resources Limited • Indonesia - Heat Recovery Steam Generator Tambak Lorok CCPP Block 2 Life Extension and Upgrades by PT Indonesia Power Semarang Power
Generation Unit
Power Project Finance House of the Year
• Gold - 145 MW Cirata Floating Solar Photovoltaic Power Plant by
Standard Chartered Bank (Singapore) Limited
Power Utility of the Year
• Bangladesh - Summit Power international • India - ReNew Power • Indonesia - PT Pembangkitan Jawa Bali • Pakistan - K Electric • UAE - FUJAIRAH ASIA POWER COMPANY PJSC
Smart Grid Project of the Year - India
• The bleeding-edge of gridtech: Husk Power by Husk Power Systems
Solar Power Project of the Year
• Australia - 256.5 MWp Kiamal Solar Farm by Total Eren • China - TAIHAN 550MW Aqua-PV Farm in Wenzhou China by Chint Solar (Zhejiang) Co., Ltd • India - 110 MW Solar Power Plant, Pokhran, Rajasthan by ReNew Power • Indonesia - Cirata Floating Solar Power Plant by Abu Dhabi Future Energy
Company PJSC - Masdar • Japan - Hohoku Solar Farm by CEF CO., LTD. • Malaysia - 50 MWac Large Scale Solar (LSS) Power Plant at Kuala Langat,
Selangor by TNB Renewables Sdn. Bhd. • Maldives - The Residence Falhumaafushi Photovoltaic Plants - Maximum
Inverter Power Tracking Technology by DHYBRID Power Systems GmbH • Nepal - 25 MW Solar Power Project at Nuwakot District of Nepal by
Promentute Incorporation (P) Ltd • UAE - MBR Solar Park Phase III: a technical prowess in UAE by EDF
Renewables Middle East • Vietnam - Vu Phong Energy Group - Lac Long, Vietnam by PROINSO
Standby Power Plant of the Year
• Gold - Highlights, Status and Future of Taipower’s Kinmen Smart Grid and
Energy Storage System by Taiwan Power Company • Silver - Line Charging PLTD Suppa from 11 KV to 150 KV System by PJB
Services
Transmission & Distribution Project of the Year
• Gold - Applying XR (Extended Reality) to the Tutoring on Substation O&M by Taiwan Power Company • Silver - Ma Sik Road 132kV Substation by CLP Power Hong Kong Limited • Bronze - Value added Services & Demand Side management by The Tata
Power Company Limited
Wind Power Project of the Year
• India - Ostro Kutch Wind Pvt. Limited by ReNew Power • Sri Lanka - Mannar Wind Power Project - Phase 1 by Ceylon Electricity
Board • Thailand - LomLigor Project by BCPG Public Company Limited
CK Power Public Company Limited
Kalehan Genc Enerji Uretim A.S.
PJB Services
Engineering a Brighter, Greener Future
CLP Power is driving a mission to make Hong Kong carbon neutral by 2050, and won five awards at the Asian Power Awards for its ground-breaking infrastructure projects and innovative efforts to bring bluer skies to the city.
Hong Kong’s journey to a carbon neutral future and won a total of four awards, including three gold awards, in the following categories of the Asian Power Awards 2021: Dual Fuel Power Plant of the Year, Flexible Gas Power Project of the Year, Gas Power Project of the Year, and Gas Power Project of the Year in Hong Kong.
Increasing the ratio of gas-fired generation is an important near-term measure in CLP Power’s energy transition strategy and aligns with the company’s updated Climate Vision 2050 mission statement which commits it to achieving net-zero greenhouse emissions across its value chain by 2050.
Fuel efficiency and flexibility are central to the design of unit D1. It is engineered to use a wide range of gas supplies, and is also a dual fuel unit with the capacity to switch to emergency back-up fuel and with capability for automatic on-load fuel transfer to ensure reliable supply of electricity to its customers.
The commissioning of Unit D1 in 2020 at Black Point Power Station has seen CLP Power’s gas-fired power generation ratio increase to around 50% of the fuel mix.
Hong Kong – one of the world’s most dynamic, advanced, and densely populated cities – has embarked on an ambitious mission to achieve carbon neutrality by the middle of the century.
As the city’s largest power company and a business at the heart of the Hong Kong community for more than 120 years, CLP Power is central to the success of that mission, and is adopting state-of-the-art technology across the city to create clearer, bluer skies.
From ground-breaking infrastructure projects to community energy-saving initiatives, CLP Power is leading the way in a green energy movement that is transforming the way Hong Kong people and businesses think about the electricity they use.
The jewel in the crown of CLP Power’s decarbonisation drive is Black Point Power Station, which has used natural gas for power generation for more than a quarter of a century to gradually reduce the city’s dependence on energy generated by coal. 2020 was a milestone year in the company’s green energy transformation. A more advanced and efficient Combined Cycle Gas Turbine has been deployed in the first new 550-megawatt gas-fired generation unit called D1 at Black Point Power Station, raising the proportion of natural gas in CLP Power’s overall fuel mix to around 50% from a previous level of less than 30%.
Its successful launch has reduced CLP Power’s carbon intensity to around 0.37 kg per kilowatt-hour of electricity consumption in 2020, outperforming the carbon reduction achievements of developed countries such as Japan and South Korea, and on a par with the performances of Germany and the US.
Highly efficient carbon-cutting technology
Unit D1 at Black Point Power Station has a generation capacity of 550 megawatts, the largest of all existing gas-fired units in Hong Kong and sufficient to power 900,000 homes.
The new generation unit deploys state-of-theart H-class gas turbine technology and has an efficiency rate of around 60%, making it one of the most efficient gas-fired power plants in the world. It cuts annual carbon dioxide emissions by around one million tonnes, equivalent to the planting of more than 42 million trees.
Unit D1 is a hugely significant step forward in
A global workforce
Putting unit D1 into service was a multidisciplinary mega-project that combined engineering and construction expertise and involved equipment and material supplied from countries around the world, including Europe, the US, and Asia.
Its completion was a massive feat of ingenuity and resource management. By the middle of 2018, more than 1,200 deliveries of major components had been delivered to the site which, because of its size, had only a limited area available for storage and assembly.
The highly advanced H-class gas turbine weighing more than 450 tonnes was shipped in from the factory in Berlin. To avoid impact on the environment and roads, project components weighing a total of more than 10,000 tonnes were delivered by sea.
The workforce involved in the project comprised more than 20 different nationalities, and safety messages and communications were conducted in a variety of languages including Chinese, English, and Nepalese to ensure clear
greater efficiency.
Building Information Modelling and simulation technology were deployed to improve the cost effectiveness of the project and determine the best building configuration to mitigate the impacts of wind amplification, sun shading, and light pollution.
The award for the new substation reflects CLP Power’s ability to develop people-centric, sustainable substations which provide safe, reliable electricity to the Hong Kong community while supporting the city on its journey to a smart future.
CLP Power organised an opening ceremony for unit D1 in October 2021. The ceremony was officiated by Hong Kong SAR Chief Executive The Honourable Mrs Carrie Lam Cheng Yuet-ngor (6th from left) and Chairman of CLP Holdings The Honourable Sir Michael Kadoorie (6th from right).
understanding by everyone involved.
At the peak period of construction in 2019, work was being carried out around the clock seven days a week over a period of two months with more than 1,500 people on site to ensure it met the project schedule.
Even the emergence of COVID-19 in early 2020 could not slow the project’s progress with stringent anti-pandemic precautions swiftly implemented to ensure that work continued and unit D1 went into service on schedule.
Throughout the mammoth undertaking, the project team used advanced technology to keep international experts and the site team closely connected, often operating in locations thousands of miles apart and in different time zones.
The technology included remote online monitoring from manufacturers’ premises overseas and mobile communications on the ground. The team’s resilience and resourcefulness were key factors in the smooth and successful completion of the project in mid-2020.
Embracing a green vision
Transforming Hong Kong into a low-carbon smart city is a holistic effort that covers every aspect of CLP Power’s power supply network, from generation to distribution to the millions of homes and businesses it serves.
As well as the four awards for unit D1, the company won a silver prize in the Transmission and Distribution Project of the Year category of the Asian Power Awards 2021 for its new Ma Sik Road 132kV substation.
The modern, green substation has been created for a new town development in Hong Kong’s northeast New Territories and will serve a diversity of homes, businesses, retail outlets and services, as well as public facilities and agricultural enterprises.
It has an eco-friendly design with extensive greening to blend into its environment and reduce urban heating, including solar panels, a
rainwater harvest system, a drip-pipe irrigation installation, and energy-efficient electrical appliances to promote energy saving and sustainability.
The substation features low noise and low loss design 132kV/11kV transformers and modern vacuum-type tap changers to reduce the need for maintenance. It also has a new generation of control and supervision systems for the transmission plant capable of communicating with numerous Intelligent Electronic Devices for
The challenge of our times
CLP Power’s success at the Asian Power Awards underscores the company’s determination to be at the forefront of technological advance and to play a key role in Hong Kong’s continuing energy transformation.
Speaking at the New Gas-fired Generation Unit Opening Ceremony in October last year, Chairman of CLP Holdings The Honourable Sir Michael Kadoorie said, “CLP firmly supports the Government’s mission to make our city carbon neutral by the middle of this century, and as part of our relentless effort, the CLP Group has committed to achieving net-zero greenhouse gas emissions by 2050. The addition of this new generation unit continues our commitment to play a small part as the world addresses the challenges of climate change.”
In its decarbonisation journey, CLP Power continues to adopt careful planning to maintain high levels of safe and reliable supply for its customers. It is currently building a second new gas-fired generation unit at Black Point Power Station, which is expected to go into operation in 2023 as part of an ongoing programme to gradually phase out the remaining coal-fired capacity at the Castle Peak ‘A’ Power Station.
The company also keeps abreast of developments in technologies that utilise renewable energy for electricity generation, and is working on ways to convert local gas generation infrastructure to support the use of green fuels such as zero-carbon hydrogen.
The 2050 carbon neutrality target is an important milestone for Hong Kong. Together with the Hong Kong SAR Government, CLP Power will also explore ways to enhance regional cooperation on zero-carbon energy and identify sources of green energy in neighbouring regions, including joint investment and development opportunities for zero-carbon energy projects near Hong Kong.
CONTACT
CLP Power Hong Kong Limited
Address: 8 Laguna Verde Avenue, Hung Hom, Kowloon, Hong Kong Contact number: (852) 2678 8111 Email: clp_info@clp.com.hk Website: www.clp.com.hk
Feni Lanka Power Limited wins 2 accolades at the Asian Power Awards 2021
The Independent Power Producer took home the Corporate Social Responsibility Initiative and Innovative Power Technology of the Year.
Feni Lanka Power Limited (FLPL)
Feni Lanka Power Limited (FLPL) is a 114 MW HFO Fired Power Plant which is located at Feni, Bangladesh. Feni Lanka Power Limited is a remarkable achievement by the engineering talent of Lakdhanavi Limited, a power generating arm of LTL HOLDINGS and one of the leading engineering companies in Sri Lanka. As an Independent Power Producer, Feni Lanka Power Limited started its commercial journey on 25 November 2019.
FLPL has seven of the four-stroke diesel engines with direct fuel injection from Wartsila, Finland. These engines are fused with cuttingedge technologies which include single-stage turbochargers from ABB, intercoolers and a control system from Wartsila. Here, electricity is generated by seven 11KV synchronous three-phase air-cooled generators from ABB, Finland which is equipped with an anti-condensation heater. Two 85MV 11/132KV main power transformers from Jiangsu Huapeng Transformer Co. Ltd are there to evacuate the power through a 5km long 132kV power transmission line. FLPL has ten numbers of tank lorries from TATA for an uninterruptible supply of fuel.
The plant itself has a fuel storing capacity of 10000m3. Cleansing of oil and fuel is achieved by integrating ten numbers of heavy-duty oil separators from Alfa Laval whilst steam is generally produced by three vertical type exhaust gas boilers. FLPL also has a horizontal type diesel fired boiler from Aalborg, Alfa Laval, Sweden for generating steam at plant standby conditions.
After a successful operation for one contractual year, FLPL is now continuing its second contractual year with Bangladesh Power Development Board. Due to remarkable achievements during its construction phase, FLPL won the Asian Power Award 2020 and this year’s programme as well, taking home both the Corporate Social Responsibility Initiative and Innovative Power Technology of the Year. It has also achieved a British safety award and ISO certification for maintaining high-class standards.
FLPL always believes in continuous development and implementing innovative technologies to enhance its beauty, safety, efficiency, and environmental aspects. Right after coming into operation FLPL started working with performance development of the plant, energy-saving, eliminating or reducing environmental impacts, developing green environment, social responsibilities, social welfare, etc.
With the thought of reducing its internal energy consumption, FLPL introduced an online electric heater in the fuel supply line in 2020. As HFO is highly viscous, a high temperature is required to be maintained in the fuel tank. Maintaining a very high temperature of a bulk amount of fuel throughout the day requires vast heat energy which is usually recovered from the exhaust gas of the engines by means of heat recovery boilers. During summer exhaust is available as engines run a lot. But during the winter season when the plant factor goes down, exhaust gas does not always remain available. In such a situation diesel boiler is normally used for heat generation which causes extra cost and extra air pollution. To solve this issue FLPL technical team installed an online electric heater in the fuel supply line. This electric heater is used only when exhaust heat is not available. As fuel is heated up instantly, it is no more required to maintain a high temperature in the fuel tank throughout the day. After implanting this technique, FLPL diesel consumption has become less than half of the previous consumption resulting in a big amount of cost-saving for the company and also reduction of air pollution.
Furthermore, FLPL management decided that FLPL will not discharge any effluent water to eliminate adverse impacts on nearby aquatic ecosystems. This unique project was named the “zero discharge plan” where FLPL prepared a large pond in its premises to store effluent water which will eventually be used for gardening purposes. Thus, groundwater extraction has also been reduced and the nearby aquatic ecosystem is kept unaffected.
With a target to contribute to local socio-economic development, FLPL management decided to build a school building for the nearby primary school. So, FLPL took it as a CSR project and started building a four-storey school building. With all these achievements, the energetic O&M team and the experienced, innovative leadership who are fashioned about engineering excellence, socioeconomic flourishment and environmental aspects, FLPL will continue its journey for years to come.
Fujairah Asia Power Company PJSC recognised at Asian Power Awards 2021
Its Fujairah F2 Project and commitment to safe operations made it a great representative of the UAE utility sector.
Fujairah Asia Power Company PJSC’s (FAPCO) Fujairah F2 Independent Power and Water Project (IWPP) was one of the largest IWPPs at the time of its construction. Since its inception, it has continued to be an important part of the utility landscape in the UAE, not just because of its size and scale, but because the Fujairah Power and Water Complex was one of the first power and water facilities to be developed in the Emirate of Fujairah.
In 2021, Fujairah F2 continues to play a critical role in the UAE’s power and water sector. TAQA, the majority shareholder and one of the largest integrated utility companies in the Europe, Middle East and Asia (EMEA) regions, holds interests in a portfolio of generation assets in the UAE and abroad. Fujairah F2 represents around 12% of its UAE fleet.
According to Alawi Al Jefri, the Executive Managing Director of FAPCO, power and water is the backbone of any industrialisation in the modern era. “Bringing utility-scale power and water development spurred on industrialisation in the community, it brought with it jobs and career opportunities, as well as access to power and water sources for industry and agriculture,” he said.
Fujairah F2 is a combined-cycle power plant and hybrid multi-effect distillation and reverse osmosis (RO) desalination plant. It has 2.1 GW of gross power generation capacity and has a gross water generation capacity of 132 MIGD. However, it is the plant’s commitment to safe, reliable, and responsible operations that make it a great representative of the UAE utility sector. This commitment is ingrained in the culture and the people at the plant.
Safety is always a topical subject in the sector; however, it has been a key focus area for the team. “You can’t achieve operational excellence without a strong safety culture, and this can only be achieved through visible felt leadership,” adds Al Jefri. One of its safety initiatives involves revisiting the details of
GW Power generation capacity 2.1
Awards
60%
TAQA stake
Power Utility of the Year (UAE)
from the Asia Power Awards 2021
Award of Excellence Electricity Sector Award Winner
past incidents on every anniversary of its occurrence. Every employee and contractor onsite are involved in going over the learnings and details of the incident. Al Jefri states that often there is fear around looking at the incidents that happen at your site and many focus on examples from outside. “Real examples of FUJAIRAH F2 what has happened at our plant and involving our employees, A combined-cycle power plant and hybrid multi-effect distillation and make it relevant and keep the reverse osmosis desalination plant reality of the inherent risks of this job fresh in our minds,” he adds. This commitment to a safety culture has paid off. The plant has achieved a strong safety record, 132 MIGD Desalinated water capacity including 1,500 days without a lost-time incident (LTI). It has also won the gold award from the Royal Society for the Prevention of Accidents (ROSPA) in 2017, 2018, 2019, and 2020. Beyond safety, the plant also has a track record for investing in its people through robust succession planning and knowledge transfer processes. Since commencing operations, it has focused on a development programme for UAE nationals. An important factor
In partnership with Location 2011
for futureproofing one of the Fujairah, UAE 5 km south of Khor Fakkan country’s most critical sectors. The programme has seen dozens of Emirati talents come
from the Royal Society of Prevention of Accidents 2021 Start of operations
Gold Award
from the Royal Society for the Prevention of Accidents 2020, 2019, 2018 and 2017 from the Marubeni Stakeholder Asset Excellence Award Winner 2019
POWERING A THRIVING
FUTURE
Emiratization Award
from the Ministry of Human Resources and Emiratization Alawi Al Jefri, Executive Managing Director of FAPCO
through the plant. It is a flexible programme that offers everything from internships and work experience, to graduate positions as well as job opportunities for untrained employees.
“We bring in nationals across all levels of our organisation, from untrained to PhD educated employees and offer an opportunity for a career here. We have had people start on the reception desk who now work in HR or finance. And I hope I can be an example for the next generation as the Executive Managing Director and a proud UAE National,” he adds.
Al Jefri sees UAE nationals as essential to improving the performance of the plant for future generations and ensures that Emiratis are exposed to opportunities in utilities. This development supports the economic aspirations of the UAE to diversify its economy and cultivate a knowledgebased market. It also supports succession planning for the next 50 years.
Al Jefri’s passion for his people and the sector shines through, making it clear why Fujairah F2 is such an important part of the UAE’s utility sector. “There is so much value in these power and water assets that needs to be tapped into and not just the economics. To realise its full potential, we must see the value that can be extracted through the development of people and a culture of excellence, that is where we can contribute to society,” he concluded.
TIM BUCKLEY
Who will grab regional leadership in the global energy transition?
TIM BUCKLEY
Director Energy Finance Studies, Australia/South Asia, IEEFA
Policy, economic and financial forces are now combining to drive the rapid adoption of renewable energy worldwide start-ups, it would put Australian dollars into constructive economic activity, far more constructive than further inflating Australia’s bloated housing market.
Technical, engineering and research collaboration should be taken to an altogether higher level, through academic institutions, think tanks, the Australian Renewable Energy Agency (ARENA), Clean Energy Finance Corporation (CEFC) and industry bodies. These direct exchanges of knowledge and experience, mediated by the development of personal relationships, would pay dividends well beyond the specific projects. This is an area that can be rapidly expanded with appropriate funding and, as COVID conditions permit, streamlined visa arrangements to leverage the close partnership Australia and India already share in tertiary education.
Journeying together through the coal phase-out
Collaboration can even extend to India’s coal industry and still benefit energy transition.
India’s coal production is likely to peak within just a few years. Improving the efficiency of production and supply, enhancing health and safety whilst limiting environmental damage could focus on the larger open-cut mines which are likely to remain in production for some while.
Coal’s phase-out will first affect the 84% of India’s 459 mines which we know, thanks to the work of the University of British Columbia’s Sandeep Pai, together contribute less than one-fifth of India’s coal but employ large numbers of people directly and indirectly. Mine-site reclamation, diversification of the state-owned enterprises that dominate Indian coal mining (being actively contemplated by Coal India Ltd) and creating new economic activities for these communities will be challenges for India and other countries. Meeting them would benefit from sharing experiences and international partnerships.
As Australia deepens security ties with India via the Quad, it is important that the broader common interest be front of mind. Alliances succeed to the extent they reflect mutual interest, and by making the success of energy transition a joint project, the relationship between Australia and India can be put on firmer ground. India is leading aspects of this transition not only through its renewable energy growth but internationally, as host to the International Solar Alliance, of which Australia is a founding member.
Opportunities for investment and collaboration will rapidly follow in Vietnam, Indonesia, Malaysia and other countries in the region, and they are looking to emulate India’s experience.
To benefit from technical, commercial, and research leadership in all aspects of energy transition, Australia should partner with India as a matter of strategic priority, and not pass on a unique opportunity.
The global transition to clean energy has ended its initial phase of incremental growth and is on the brink of transformational change.
However imperfect may be the outcomes of November’s COP26 meeting in Glasgow, policy, economic and financial forces are now combining to drive the rapid adoption of renewable energy around the world even where arguments for climate action have faltered.
Australians are pragmatic and recognise that taking anything less than a serious and credible emissions reduction plan to Glasgow would be detrimental to our world standing. But Australia’s future role in the region is a tangible and immediate concern.
Australia could inject into the diplomatic activity that surrounds Glasgow a constructive and mutually beneficial plan for its role in regional energy transition.
What elements could this include?
To be taken seriously, a credible emissions reduction plan and an acceptance that fossil fuel exports will, over time, be phased out are prerequisites.
Australia’s energy exports will continue but will increasingly take the form of minerals critical to battery manufacture, not just lithium and rare earth metals but nickel, copper, zinc and other less exotic but equally important minerals, ideally with some degree of processing here. Hydrogen and ammonia will progressively supplant gas exports. Even the direct export of solar electricity is being pioneered by SunCable, with its Australia-toSingapore high voltage subsea cable route having just received approval by Indonesia.
As the country with by far the largest expected electricity demand increase in coming decades, and the world’s biggest democracy, India deserves special attention, and the complementary nature of Australia and India invites much deeper collaboration.
One obstacle to an even more rapid roll-out of renewable energy than India has already achieved is finance.
More significant than any contribution of public funds is the opportunity for some of Australia’s three trillion dollars in retirement savings to accelerate India’s renewable and grid infrastructure investment program. India’s Foreign Direct Investment regime grants automatic approval status for renewable energy projects. Replacing the annual Australia-India Energy Dialogue with a much higher priority and continuous diplomatic engagement could identify specific opportunities for investment and ensure appropriate safeguards.
Energising India with renewables will not only alleviate energy poverty, energy security and water scarcity issues better than would coal exports, but by powering India’s dynamic rural economy as well as its industries and
CHRISTINA NG
Accepting gas as sustainable will hurt Korea’s green finance credentials
CHRISTINA NG
Research and Stakeholder Engagement Leader, Fixed Income
South Korea’s Gas-fired Power Plan Could Be Funded with Green Proceeds
Source: Ministry of Trade, Industry and Energy’s 9th Basic Plan for Long-term Electricity supply and demand, published December 2020
After six months of resisting industry calls to add liquefied natural gas (LNG) to its green taxonomy, the South Korean government last week finally succumbed to gas lobbyists.
This is surprising as, only two weeks ago, President Moon Jae-In made a wellreceived, new emissions pledge—cutting the country’s greenhouse gas emissions to 40% by 2030.
The obvious dichotomy here is that recognising gas and LNG as an environmentally sustainable “transition” fuel will likely lock South Korea into a high-emitting future, which directly contradicts the policy and market incentives created by President Moon’s new emissions reduction targets.
The draft green taxonomy, known locally as the K-Taxonomy, prescribes an end-use emission technical screening criteria of 320g of carbon dioxide (CO2) per kilowatt hour (kWh). A life-cycle emission standard is also expected, but it will only apply from 2025.
This means that new unabated LNG-power projects, of which around 10 gigawatts are expected to flood South Korea’s energy market by 2025, would qualify for green bond and loan financing if the draft K-Taxonomy is finalised without changes.
Emissions-wary ESG investors should be on alert.
South Korean green debt amounted to US$42.8 billion on 30 September 2021, according to Bloomberg New Energy Finance. A third of it, around US$14.22 billion, funded power and energy companies.
If the current draft of the K-Taxonomy proceeds as is, ESG investors may find themselves inadvertently backing gas.
The problem is the undisputable fact that, in addition to coal, gas is the fossil fuel most troubling climate-aware investors looking at the emissions of long-life infrastructure investments.
Gas contributes carbon and methane to the atmosphere through its combustion, with lifecycle emissions that are dangerous and significant. Moreover, methane from gas has a warming effect up to 80 or 90 times more powerful than carbon over a 20-year period, making gas worse for the climate than coal in the short term.
The tension around the limited role for gas in energy transition is evident in the taxonomy work playing out in all global markets.
After much controversy, the European Union (EU) has accepted gas-powered generation as a ‘transitional’ asset class under its Sustainable Finance Taxonomy, provided that a project’s lifecycle carbon emissions are limited to 100g CO2 per kWh.
At this specification, gas-powered projects in the EU will likely require the use of carbon capture technology (CCS), which is yet to be proven economically or technically viable at scale anywhere in the world.
Under these conditions, gas is unlikely to be funded in the short to medium, or even the long term, under the EU’s taxonomy.
The K-Taxonomy gas policy bind: Make lobbyists happy but damage green leadership options
With the gas question a high-stakes dance for investors and policymakers in Europe, Korea’s policymakers will now have to weigh the odds carefully.
The K-Taxonomy is expected to be finalised by the end of 2021, and with its current draft not consistent with the gold-standard EU Taxonomy, investors are right to be wary.
With the inclusion of gas in the K-Taxonomy, Korean policymakers have effectively signalled they aren’t up to the task of leading market development with a green taxonomy.
Instead, they are showing a preference for remaining in lock-step with emerging market Southeast Asian counterparts who have flagged their intention to recognise gas-powered generation as “green”.
This puts South Korea at risk of deterring serious ESG investors who typically prefer “dark green” assets—solar, wind and geothermal for example.
The United Kingdom’s (UK) inaugural sovereign green bond issued in September 2021 demonstrated that risk when it provided a mixed portfolio of green and controversial assets like “blue hydrogen”, which uses methane gas in its production. Several leading debt investors immediately expressed criticism over the sovereign’s opportunistic ‘green’ bond and avoided it entirely.
By contrast, China—the largest green debt market in the region—took a different and much more strategic approach, learning from market trends and adapting.
Its first green taxonomy in 2015 categorised “clean coal” as a green project that qualified for the issuance of green bonds, drawing widespread criticism, particularly from foreign investors.
Recognising the significance of a truly green taxonomy, in mid 2021, China removed fossil fuel-related projects and the new Green Bond Endorsed Project Catalogue—its equivalent green taxonomy—now excludes gas, LNG and coalfired power activities.
Like South Korea, China relies on burning fossil fuels to power the country. However, President Xi Jinping’s pledge to accelerate the country’s transformation to a green and low carbon economy, and to achieve carbon neutrality before 2060, has opened the door to a much more strategic view on how China’s green finance market should develop, and which technologies should be incentivised.
China is also working with the EU to harmonise their respective taxonomies by the end of 2021. This is a positive initiative between jurisdictions in response to investor requests for a common standard on green or sustainable projects. The move also indicates that the Asian giant is ready to compete for global green capital.
Green Bonds and Loans on The Rise Among South Korean Power and Energy Companies
