Asian Power (October - December 2019)

Issue No. 94

ISSUE 94 | DISPLAY TO 31 December 2019 | www.asian-power.com | A Charlton Media Group publication

US$360P.A.

INSIDE VIETNAM’S 3.4GW OFFSHORE WIND GIANT THIS FEAT REQUIRES LEARNING VIETNAM’S DEEP WATERS AND ENGAGING ITS NASCENT RENEWABLES MARKET, SAYS ENTERPRIZE ENERGY CEO IAN HATTON.

Asian Power

WHY CAPITAL ELUDES SOUTH ASIA’S IPPS WHY INDIA’S WINDSOLAR HYBRIDS ARE STUCK IN THE DOLDRUMS

COAL GETS $5B LIFELINE IN JAPAN’S MEGABANKS CHINA’S COAL GIANTS FLUNK DISCLOSURE TESTS

FROM THE EDITOR The 15th Asian Power Awards capped off 2019 with a blast thanks to an impressive lineup of winners, recordbreaking nominations, and over a hundred executives attending “The Oscars” of the power industry. Find out what happened during the awards night at the Shangri-La Hotel, Kuala Lumpur on page 22.

PUBLISHER & EDITOR-IN-CHIEF Tim Charlton ASSOCIATE PUBLISHER Rochelle Romero PRODUCTION EDITOR Danielle Mae V. Isaac GRAPHIC ARTIST Simon Engracial II

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Summertime’s unforgiving heatwave may leave 1.3 million homes in Australia without power if generator breakdowns persist and eventually cost the sector $400b.

Developers are also left to grapple with the uncertainty towards the baseload power mix as majority of the national coal fleet retires by 2040.

Read more about this issue on page 14.

We also got the updates on what is setting up to be one of the world’s largest wind farms, the 3,400MW wind park in Vietnam by UK-based developer Enterprize Energy. Ian Hatton, CEO of Enterprize Energy, talked about what it takes to execute such a feat on page 12.

Start flipping the pages and enjoy!

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ASIAN POWER 1

CONTENTS

INTERVIEW 12 CEO INSIDE VIETNAM’S 3,400MW OFFSHORE WIND GIANT

FIRSTS 06 Taiwan gears to be the next solar power hub 07 Capital crunch haunts South Asia

22

EVENT COVERAGE FIND OUT WHO EMERGED AS THE VICTORS IN THE ASIAN POWER AWARDS 2019

14

COUNTRY REPORT AUSTRALIA RISKS NEGLECT OF BLACKOUT CRISIS OVER ATTEMPTS TO JUGGLE BASELOAD CONFLICTS

ANALYSIS 16 $5b of Japanese megabank loans flow into Asian coal projects despite heightened risks

18 Vietnam’s solar scheme proves sceptics wrong

08 Coal firms flunk disclosure tests 10 Malaysia’s quest for baseload power

OPINION 46 Moving towards renewable and sustainable energy in Sri Lanka: an uphill battle?

Published quarterly on the Second week of the Month by Charlton Media Group 101 Cecil St. #17-09 Tong Eng Building Singapore 069533

For the latest news on Asian power and energy, visit the website

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News from asian-power.com Daily news from Asia MOST READ

REGULATION

Singapore to deploy 2GW of solar power by 2030 Singapore expects to deploy 2GWp of solar power by 2030, equivalent to 10% of the city’s peak daily demand, said trade minister Chan Chun Sing during the Singapore International Energy Week 2019. He added that they are on track to reach 350MWp of solar power deployed by 2020.

REGULATION, POWER UTILITY

China’s wind capacity to double to 421GW by 2028 China’s installed capacity for its wind power sector is expected to rise to 206.74GW by 2019, and to double to 421.11GW by 2028, despite the phaseout of subsidies for the sector by 2021, Fitch Solutions reported. The outlook is based on the efforts in the market to reduce wind curtailment.

4 ASIAN POWER

PROJECT

India’s largest nuclear power plant suffers cyberattack The Nuclear Power Corporation of India Limited has confirmed a cyberattack in India’s largest power plant, the Kudankulam Nuclear Power Plant in Tamil Nadu in September. The matter was immediately investigated by specialists from the Department of Atomic Energy (DAE).

PROJECT

SECI awards 960 MW of solar power projects in India The Solar Energy Corp of India (SECI) has awarded four solar power projects in its 1,200 MW solar auction (960 MW allotted). Three companies, namely Renew, Avaada and UPC Renewables won 300 MW each at a tariff of INR 2.71/kWh (US$3.83c/kWh), whilst Tata Power won 60 MW at INR 2.72/kWh (US$3.85c/kWh).

IPP

Germany’s RWE eyes expansion to Japan’s offshore wind market German utility RWE is looking to invest in Japan’s offshore wind power projects and is in talks with potential partners as it aims to expand its global renewable portfolio. RWE has transformed itself by taking over the renewables activities of subsidiary Innogy and German peer E.ON.

REGULATION

India holds firm on 175GW renewables target for 2022 India’s Ministry of New and Renewable Energy refuted the claim of CRISIL Research that it won’t be able to push its renewable installed capacity to 175GW by 2022. Previously, CRISIL said that India’s renewable capacity could only grow by 40GW to 104GW, which is roughly 42% short of the target.

ASIAN POWER 5

FIRST The Bureau of Energy picked the site as the country’s first large-scale groundmounted renewable energy project, and we won the tender in September 2017 amidst keen competition from local and regional companies. Construction of the Mingus Solar Project—currently the largest private solar project in Taiwan— began in early 2018.

VIETNAM, MALAYSIA X SOUTHEAST ASIA LEAD IN POWER GROWTH MALAYSIA

Mike Thomas Dr Bikal Kumar Pokharel, Wood Mackenzie

Vietnam and Malaysia are shaping up to be the most rapidly growing power markets in Southeast Asia, according to Mike Thomas, partner at The Lantau Group. In an interview with Asian Power, Mike talks about how governments in the region should cope with the changes in the power sector.

Which countries best highlight the biggest trends in Asia’s power sector?

Vietnam has really caught the attention of a lot of people just in the last year with the many gigawatts of power coming into the next couple of months. More than a 10% increase in the whole country’s power will be new projects. It’s inconceivable. We have Malaysia here with LSS 1-3, with almost 7GW subscribed in the most recent one. This was in a country that does not seem that open to solar a couple of years ago.

What do you think is driving the new technologies and growth in Vietnam and Malaysia?

I think it’s the speed with which you can get projects done in renewable space. A year is not uncommon or even less compared to a coal plant. If you’re trying to develop a coal plant in Vietnam, it might take a decade. You might think you’re close for so long.

The countries are still growing very fast, demand is needed. In a sense, projects that can be done more quickly by more parties are becoming attractive and I think you’ve seen a slow shift in thinking about renewables.

There’s probably a little bit of confusion that it might just be cheaper, but certainly, it can be developed quickly.

As renewables are growing at a fast pace, how should governments catch up?

This is a new convergence of technology, data, environmental as well as traditional projects.

They all have different regulatory requirements, they all are pursuing different sources of value for different purposes. Totally off the grid, behind the meter.

Policy in the energy sector doesn’t always move so quickly. I think the governments are actually going to be behind for some time.

That’s going to create some challenges in a couple of countries for too much of this, wrong place for that. An incentive that’s oversubscribed, a need that’s not fulfilled because the regulatory and commercial won’t quite align. I don’t know how they’re going to catch up, I just know that it’s going to be a problem for a little while.

6 ASIAN POWER

Vena Energy’s Mingus project

Taiwan gears to be the next solar power hub

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TAIWAN

efore Singapore-based IPP Vena Energy was able to power on Taiwan’s largest ground-mount utility-scale solar project, it had to learn to cut back on the ecological impact of its development as the project site in Chiayi County stood on salt plains abundant with wildlife and vegetation. Despite the challenging setback, the firm successfully installed 195,000 photovoltaic (PV) modules that span an area of approximately 79.5 hectares and can produce 100GWh annually.

Sam Ong, group CFO and country manager of Taiwan at Vena Energy, talked to Asian Power about how the company brought the project forward and walked us through the time it won the tender until the establishment of an ecological centre near the plant. Ong also discussed how Vena Energy financed the project and the firm’s 600MW project pipeline in Taiwan.

Why did Vena Energy decide to build a ground-mounted solar project in Chiayi County?

We participated in a competitive tender by the Bureau of Energy in Taiwan. The site was an abandoned former salt production farm that was underutilised.

Sam Ong

What were some key issues encountered before, during, and after development?

Our priority prior to the construction was to ensure we minimise the ecological impact on the local and migratory wildlife that live in the vicinity of the Mingus Solar Project site.

The site also hosts a subpopulation of the endangered black-faced spoonbill, which spends its wintering months in the vicinity.

We are in compliance with the established Equator principles and practices in the development of the project. We consulted with the Chinese Wild Bird Federation (CWBF) and a wetland ecologist to conduct surveys of the local and migratory birds, freshwater fish, vegetation, and water quality.

The research enabled us to better understand the existing ecological system, as well as mitigate the impact the project may have. These steps were taken during the construction of the Mingus Solar Project and will continue as we commence operation of the project.

We committed additional and significant resources to ensure that construction of the Mingus Solar Project would be completed before the wintering months. We also reserved approximately 24 hectares of land to create an Ecological Conservation Area, so that local wildlife including waterfowls can flourish.

How did Vena Energy finance the project? What was the key selling point of the project?

Vena Energy is an integrated long-term renewable power producer and we are attracted to Taiwan’s commitment to renewable industry growth of achieving 20GW by 2025. We worked with local and international banks to finance the project, which is particularly attractive as it is the first large-scale solar project tender by the government, and that the Mingus Solar Project was the largest ground-mounted development introduced in 2017. Additionally, it is the first large-scale solar development that took into consideration of the natural environment and wild bird habitat.

FIRST Summit Power International (Summit) deferred its initial public offering (IPO) from the Singapore Exchange (SGX) after initially being forced to downsize the deal from $350m to $260m.

Investors still view South Asian countries as high-risk markets.

Capital crunch haunts South Asia

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BANGLADESH

ith Bangladesh’s second floating storage and regas unit (FSRU) in the works, the government is looking to fill its depleting domestic gas reserves with LNG imports. However, most projects for infrastructure in the gas supply chain could not take off due to the lack of capital from both the private sector and international markets.

This issue persisted in 2018 when Summit Power International (Summit) deferred its initial public offering (IPO) from the Singapore Exchange (SGX) after initially being forced to downsize the deal from $350m to $260m. Media reports added that there was a lack of demand from institutional investors and private banking clients for non-

real estate investment trust IPOs in Singapore.

Bangladesh’s power players are still exploring alternative means of raising funds to support future growth even with the presence of development banks. Power demand in Bangladesh is struggling to match the country’s economic growth that has hit above 7-8% for the past 15-18 years, said Summit CEO Ayesha Aziz Khan in a panel at POWERGEN Asia 2019.

Khan said that she still hopes the private sector and the international market will support their local power sector, which nearly has a strategy on its primary energy sources and is now mulling energy efficiency and how to cut back on carbon dioxide emissions.

“I see the regulators slowly turning the focus more on that. I hope the private sector and the international market start supporting the government when they turn the gears towards that,” she said.

Opening up regional markets Power developers in Bangladesh’s capital market have to figure out how to price capital and risk as more offtakers are unable to shoulder the risks brought about by increasing power demand, Khan said. “What we have now been pricing is the risk of the offtaker or risk of the consumer but not the risk of the energy line, because we have always been pushing that on the offtaker. But the capital providers need to start thinking about what happens when the offtaker stops taking the risk of energy sourcing, which is finally what will happen throughout regulators in South Asia, as offtakers are unable to keep up with this demand.”

Whilst project developers have tapped into debt markets for the past 15 years, Khan suggested opening up regional capital markets to resolve the sector’s pricing problem. “If you want to do a listing, it’s a very cumbersome process.

You need to go through a long process rather than finding which is the listing locale that makes the best sense for a company like yours,” she said.

There is also a lack of peer comparison across the power companies, which is making way for fewer efficiencies, Khan noted, saying “Instead, there’s only one power generation company in one small index. Capital markets and indexes and stock markets really need to open up to allow for more companies to list and for at least regional cooperation to happen.

There should be a lot more flexibility in trading and a lot more counter exchanges to happen.”

THE CHARTIST: INDIA JAPAN’S TAPS SOLAR INTOINDUSTRY 300GW OFISFLOATING DIMMER WITH SOLAR JUST POTENTIAL 20GW PROJECTED ACROSS FOUR TO COME STATES ONLINE India Japan’ can s solar tap into power 300GW sector of will potential expand at floating robust rates solar plants through into India 2020 by using as a large 10-15% Annual x capacity addition trends of wind and of backlog the water of projects bodies insupported the statesby of feedKerala, solar in India Assam, in tariffs Odisha, comeand online.

West After Bengal, 2020, according BMI to Research JMK Research said that & Analytics. the transition By 2020-2021, to a the reverse government auctions ofsystem India has will set slow a target growth, to as add the10GW Japanese of floating government solar capacity. looks to regulate As of end-July, capacityabout additions 2.72MW in order of floating to reduce solar subsidy plants costs have and support already grid beenstability. commissioned whilst “Weanother expect971MW Japan toare register underrobust the solar tendering capacity growth phase. through to 2020 as a result ofOne theof implementation the key floatingofsolar a substantial projects was pipeline cleared of projects in Augustthat when benefit Uttar Pradesh’ from a s Cabinet generous greenlighted feed-in tariff a 150MW supportfloating scheme. solar Our forecast plant on Rihand is that out dam.ofItawill 50GW be the backlog biggest of suchfloating projects, solar onlyplant 20GW in India will actually and is expected come online, to beascommissioned most will not be

by May able 2020. to ReNew take advantage got 100MW of the whilst FiTShapoorji subsidiesPallonji amid Source: JMK Research got stringent 50MWgovernment at a tariff of 4.7 requirements cents (INR3.36) and Source: BMI Research per delays unit.in development,” BMI Research added.

Status x of floating solar projects in India (MW), as of July 31, 2019

Source: JMK Research Source: BMI Research

ASIAN POWER 7

FIRST

Coal firms flunk disclosure tests

Chinese power company disclosure scores 2.5 on average against 4.2 for other Asian counterparts

SINGAPORE

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CHINA

hina’s largest listed power companies are struggling to take meaningful steps on the transition to cleaner energy as they fail to tick disclosure standards, according to a report by consultancy firm Asia Research & Engagement (ARE), which analysed disclosure practices as well as sustainability moves made

by Huaneng Power International, Huadian Power International, Datang Power International, China Resources Power, China Power International and China Shenhua Energy.

“On average, the companies provide answers to less than three questions of the 13 that we used to assess their strategic response to climate change. Significantly, Shenhua did not consider climate change or GHG emissions management as a material issue,” said Ben McCarron, lead author of the report.

“The rest of the companies did, but none provided any carbon-related targets and only one company (China Resources Power) provided a nearterm renewable energy generation target for 2020.”

Compared to their global and regional peers, listed Chinese coalfired power companies provide scant relevant information on how they are adapting their strategies in line with the energy transition. In comparison, PLANT WATCH

Source: Company reports, ARE

Asian peers CLP and KEPCO provided six answers. Meanwhile, Hongkong Electric and Tata Power provided four each. Amongst the Chinese companies, only China Resources Power provided more answers than the rest of its Asian peers.

The listed coalfired companies all have higher proportions of coal than the national target (55% by 2020).

Renewables generation Reducing the share of coal power was also a prevalent issue amongst the firms. The listed coal-fired companies all have higher proportions of coal than the national target (55% by 2020), which will act as a long-term constraint to growth for the companies under their current business models.

China’s power companies added more coal than wind and solar in 2018, even excluding the coal capacity Datang acquired from its parent company. For five of the companies, capacity commitments beyond 2018 for coal (6.4GW) are higher than for wind and solar (5.9GW).

TEPCO to close Kashiwazaki reactor

JERA buys stake in Formosa 2 project

China, Korea vie for nuclear project

JAPAN

TAIWAN

CHINA, KOREA

Tokyo Electric Power Co. (TEPCO) expects to decommission one if not more of Kashiwazaki Kariwa Nuclear Power Plants Units 1 to 5 in five years after restarting Units 6 and 7. TEPCO presented to Kashiwazaki City Mayor Masahiro Sakurai a document laying down its basic approach to the recommencement of operation as well as the decommissioning of the power plants.

Sakurai requested a decommissioning plan for Units 1 to 5 by 2019, as condition for approving the restarts of Units 6 and 7.

8 ASIAN POWER

BUILDING THE ASEAN’S X HYBRID MICROGRIDS

JERA inked a deal with Macquarie Capital to buy a 49% stake in the 376MW Formosa 2 wind power project in Taiwan. This follows JERA’s participation in the Formosa 1 offshore wind project announced in December 2018.

The project, located off the coast of Miaoli County, is preparing to commence construction in October to install 47 wind turbines, with the expectation to reach commercial operation by the end of 2021.

It secured the support of Taiwan Power Company under a 20-year power purchase agreement (PPA).

State utilities from China and South Korea, including CNNC and Korea Hydro & Nuclear Power Co (KHNP), are amongst the seven groups interested in becoming strategic investors in Bulgaria’s Belene nuclear power project, according to the national energy minister.

Neighbouring North Macedonia has also expressed an interest in a minority stake and long-term contracts to buy electricity from the 2,000MW project on the river Danube, estimated to cost EUR10b, Temenuzhka Petkova said.

xxx Atem S.Ramsundersingh

Asian Power talked to YTL Power International Asian Power Atem Berhad’s CEO spoke Tan Sri with Francis Yeoh about the S.Ramsundersingh, the CEO of Singaporecompany’s largest projects. based IPP WEnergy Global, about his experience in the building a 24/7 most diesel-solar Tell us about company’s stellar hybrid which servesand 800where customers in powerplant projects to date they are the Philippines through a 14km microgrid.

He located. discussed in gettingthe thefirst project At present,challenges we are constructing oil shale through, including a six-year in getting mine mouth power plant with adelay capacity of 2 x a235 license.

MW (net) utilising the circulating fluidised Ramsundersingh also spoke about the firm’s bed boilers (CFB) technology in the Hashemite investment TEPCO PowerisGrid for at $60m, Kingdom of with Jordan.

The project located for which it plans to build a microgrid portfolio Attarat um Guhdran which is 110 km southeast worth $100m. of Amman.

At a total investment of US$2.1b, it is the largest private sector project in Jordan to date What are the to projects youofare currently and is expected meet 15% Jordan’s annual working on? electricity demand. Attarat Power Company The projects thatcompany WEnergyhas Global (APCO) whichcurrently is the project entered and CleanGrid partners are working on in into a 30-year Power Purchase Agreement (PPA) Southeast Asia arenational very much microgrids, with the Jordanian utilityonand single both rural areas than electric 100 buyer,inNEPCO for thewhere sale ofmore the entire million do notoutput. have access capacitypeople and netstill electrical The other to electricity. is justdeveloping in the ASEAN project we areThis currently is in Cirebon — Philippines, Indonesia, Myanmar, Regency, West Java, Indonesia.

The 2 x and 660 MW Cambodia. (net) coal-fired power plant will utilise state-ofThe other thing we are working The on isproject the the-art ultra-supercritical technology. development of renewable energy-powered company, PT Tanjung Jati Power Company has microgrids that are good for industrial(PPA) estate, executed a Power Purchase Agreement or private developed cities or townships. with PT PLN (Persero) in December 2015. WeWe see a future there for is no need for the are always onwhere the lookout new opportunities national grid to come until when they are in generation whether it is bidding for existing ready. assets or investing in new projects.

I think there are a lot of more bottom-up initiatives by the private sector where they start developing, building the structure so that we can use the sun, the wind and battery storage systems to power villages and cities and towns.

What would be the role of the public and the private sector in planning the installation of renewable energy?

The public sector needs to put out more efficient and effective regulations and has to avoid unnecessary delays. Our project in the Philippines got six years delayed, and finally, this month, it is coming to the commissioning phase. Regulations play a part, but it has to be made sure that they can move fast.

The private sector’s role is to make sure we put responsible technology for a proper price that is good for consumers, good for the renewable technologies to expand in general and good for the shareholders who are taking a risk to put these technologies in there. I think there needs to be more deregulation by the government and more of the private sector’s responsibility to adhere to the rules.

CO-PUBLISHED CORPORATE PROFILE

Emerson’s approach to boosting power plant automation through seamless and effective digital solutions Plant operators can always stay ahead of the curve with Emerson’s state-of-the-art Ovation™ system.

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hoosing the right automation strategy is crucial to the success of any power plant.

A reliable control system allows a plant to easily transition during periods of technological change with minimal disruption. This is why Emerson has developed the groundbreaking Ovation™ distributed control system, an evolutionary product designed to meet the unique demands of fossil, hydro and renewable power plants.

“Emerson allows customers to take a proactive stance and define their own product needs, instead of adapting or reacting to technology trends as they occur. With Ovation™, predicting future technology trends is no longer a necessary evil,” explained Lydia Liao, Strategic Planning & Marketing Manager for Power & Water Solutions, Emerson Automation Solutions Asia Pacific.

staff on how to respond to complex operating scenarios, abnormal plant conditions and emergency situations is a critical priority. But the only way operators can effectively learn how to handle these situations is to actually experience them,” Lydia noted. “Emerson’s new high-fidelity simulator is a digital tool that allows operators to experience a wide variety of scenarios virtually indistinguishable from the control room environment.”

The Ovation™ Digital Twin uses the same plant database and controls, and the high-fidelity thermodynamic models are used to model the plant equipment, thus creating a virtual power plant. A digital power plant is a virtual copy of the power plant equipment and software, used to simulate and test all scenarios before commissioning the real unit.

“ Emerson allows customers to take a proactive stance and define their own product needs, instead of adapting or reacting to technology trends as they occur.”

Ovation utilises a commercially available, offthe-shelf technology to provide a powerful and secure architecture whilst allowing a customer’s system to easily progress with rapidly advancing computer technologies. “The system is a sure thing where obsolescence is never an issue. With each technology update, a design is established to ensure a migration path for existing users to incorporate that technology in their systems,” Lydia noted.

Seamless operations through simulation Ovation™ provides a dedicated simulator that provides a single platform for simulation and plant control. The Ovation™ Embedded Simulator is developed in a common platform where the control system and modeling are done in same tool.

“The ageing workforce is creating a major problem. The training and education of new

The Ovation™ Digital Twin simulates the processes of a typical facility, creating a virtual copy of the power plant.

“The operators get trained to handle plant abnormal conditions in an efficient way with the Ovation™ Embedded Simulator and can save the real unit from tripping scenarios thus continuously generating and transmitting power,” Lydia added.

A virtual plant does more than provide training for engineers and staff. It is also crucial in automating the manual plant startup process, helping power plants reach peak load in a shorter time. It also helps power plants respond to variability in demand and ramp up and down quickly whilst maintaining a stable frequency and voltage.

“The workflow would be like creating virtual copy of the machines and software to test the controls and machine’s performance at all scenarios.

The controls will be retuned to get the desired results for all scenarios and once it is found giving stable results, it can be implemented in real unit,” Lydia explained. “Manual plant startups have long

been the norm in the energy industry. It is based on written procedures, experience and expertise of operators. The manual process involved in starting a plant can be automated and optimised using the simulator.”

A tradition of excellence Emerson’s leading automation solutions support over 1,300GW of the planet’s capacity. With centuries of engineering expertise under its belt, Emerson is the partner of choice for customers seeking innovative solutions in the industrial, commercial, and residential market.

“We draw on many years of successful product development, introduction and system installations.

With decades of experience and leadership we have significant opportunities, both within our existing installed base and with new customers, to provide the automation, software, solutions and expertise required to reduce operational costs on existing assets, improve health and safety measures, and deliver capital projects on time and on budget,” Lydia said.

In 2017, the company launched the Emerson Solutions Center in Singapore, which includes two built-out plant settings. The Digital Plant features a scaled-down replica of a process manufacturing facility and simulates the processes of a typical facility, such as an oil refinery, a pharmaceutical plant or a power plant. The Center also includes a Central Control Room where customers can experience simulations of critical manufacturing processes for process optimization.

“About 2000 customers visited Emerson Solutions Center since it’s opened in 2017. They came for a half day or a full day to experience these technologies in a plant-like environment and understand how new digital technology can transform the way they run and maintain their plants,” Lydia noted.

“Our success history correlates to strong industry.

Emerson can quickly adapt to ever-changing market dynamics as we create broader and deeper solutions for our global customers’ most complex challenges,” she added.

Operators get trained to handle plant abnormal conditions with Ovation™ Virtual Reality Technology and Embedded Simulation.

ASIAN POWER 9

FIRST

Malaysia’s quest for baseload power MALAYSIA

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management plans and programmes are suitably and systematically developed and structured for mitigation of risks due to the supply of gas.

Under the guidelines, distribution licensees and operators of gas installations are required, amongst others, to have a written policy, plan and programme to ensure gas safety, and to carry out performance evaluation regularly. It ultimately depends on the power plant operators to be more proactive in ensuring that these safety procedures and systems are embedded within the design and the protocols used in the construction, operation, maintenance and repair of their electrical facilities.

What new technological and safety upgrades are Malaysian power plants embracing?

Malaysia is constantly keeping up with the use of new technology in the power industry and evidently so in the last year where it had placed orders with General Electric Co for the supply of 9HA gas turbines for the 1,440MW combined-cycle power plant (Track 4A) in Pasir Gudang, Johor, and 2,242MW combined-cycle power plant (Track 4B) in Alor Gajah, Melaka, with expected commissioning in 2020. These gas turbines are expected to achieve more than 61% efficiency in Malaysia, which would make it the highest within the ASEAN. It is capable of achieving 63.08% efficiency in ideal conditions with lower ambient temperatures, which would make it the highest in the world.

Various guidelines and circulars are regularly issued or updated in relation to the safety of power plants. For example, the Energy Commission recently issued a Guide on Piped Gas Safety Management Plan and Programme with the aim of ensuring that gas safety

Can you consider coal power as under threat?

What are the options for baseload power?

Malaysian power generation companies such as Tenaga Nasional Bhd and other independent power producers are constantly faced with pricing issues in relation to coal, which is the primary source of electricity generation in Peninsular Malaysia due to the fact that coal is 100% imported. As such, the unavoidable fluctuation of foreign currency exchange is a constant concern for the power players. Even with measures implemented by the government such as the imbalanced cost pass-through rate, which allows adjustment of fuel prices for the electricity sector every six months, studies have suggested that the impact of such mechanisms are neutral on the IPPs and may even be unsustainable when coal prices continue to escalate.

Malaysia’s baseload power remains highly dependent on fossil fuels. Malaysia’s current Prime Minister, Tun Dr. Mahathir, declared during his address at the Conference of the Electric Power Supply Industry that Malaysia would explore the full use of domestic coal reserves for baseload power generation and will not be considering nuclear.

Siaw Wan Lim

iaw Wan Lim, projects partner from the finance & projects practice of Wong & Partners, talked to Asian Power about Malaysia’s quest to find the right mix of baseload power, marked by efficiency upgrades in gas turbines and regulators’ concerns about fluctuating coal prices.

POWER GROWTH HINGES ON NEW RULES MYANMAR

Tony Segadelli

Tony Segadelli, managing director at OWL Energy, spoke to Asian Power about opportunities in Myanmar’s developing power sector at the sidelines of POWERGEN Asia 2019.

Can you give us an overview of Myanmar’s power market?

During the wet season, there’s overcapacity, but during the dry season, there is significant undercapacity. Myanmar has about 10% of the per capita demand for ASEAN and has much less on the global scale. The government is releasing five-year contracts.

The aim is that in the long term, they will release 20-year contracts because they’ll be much cheaper.

The tariff was extremely low until earlier this year, but the value increased the tariff.

They’re still losing money but no near the same rate as they were before.

What should be the role of both public and private sectors in RE installation?

From the generation side, pretty much all of the generation in the future will be built by IPPs. On the transmission side, a lot of it is World Bank-funded, but it’s gonna be done through EPGE. The Yangon Electricity Supply Corporation (YESC) is looking at some form of corporatisation. At some point, there will be opportunities there.

INDIA

India struggles with tepid response to wind-solar hybrid model with 35% of projects undersubscribed The wind-solar hybrid model is struggling to take off in India. Of the 3.2GW of wind-solar hybrid tenders issued by central and state agencies, auctions for 2.4GW of tenders have been materialised and only 1.6GW has been allotted, with 35% under subscription.

Because of tepid response from the industry, the Solar Energy Corporation of India (SECI) has scaled down the capacity of one of the tenders from 2.5GW to 1.2GW. Two other wind-solar hybrid tenders got cancelled: NTPC’s 174MW tender in Karnataka issued in October 2018 and another 600MW tender in Andhra Pradesh with storage.

According to an analysis by JMK Research & Analytics, the low ceiling tariffs of 3.8 cents (INR 2.7) per unit set by SECI as well as the technical challenges to integrating both wind and solar with the grid on the DC side are some of the issues subjugating the benefits of wind-solar hybrid model.

“As per the MNRE policy, till the time the DC metering framework is not in place, only AC integration is permitted. This reduces the cost 10 ASIAN POWER

benefits associated with DC integration in terms of utilisation of balance of system (BOS),” said Jyoti Gulia, co-author of the report.

Wind power saturation Another challenge is that tenders have a minimum capacity utilisation factor (CUF) of 38% which means most of the capacity has to be wind-based.

However, installing new wind capacity is a challenge in itself as most of the good high wind potential sites with grid access are already saturated, Gulia said. “For the same reasons, even the last three wind auctions were nearly 60% under-subscribed.”

JMK Research proposed to utilise a wind-solar hybrid model along with battery storage. “At present, an optimal combination of solar, wind, and storage can provide stable round-the-clock power at a price of 8.4-9.8 cents (INR 6-7) per unit. With falling prices of solar modules as well as lithium-ion batteries, this cost is expected to go down further substantially, making storage a financially attractive and feasible option,” Gulia added.

Wind-Solar Hybrid tender details, as of Sep 2019

Source: JMK Research

ASIAN POWER 11

By working the project through the development process, it will effectively establish the regulatory framework for offshore wind in Vietnam by practical example.

Ian Hatton CEO and President Enterprize Energy 12 ASIAN POWER

CEO INTERVIEW

Inside Vietnam’s 3,400MW offshore wind giant The ability to execute this feat required Enterprize Energy to learn from Asia’s wind sector, install mega turbines in deep waters, and constantly engage with regulators of Vietnam’s nascent renewables market, according to CEO Ian Hatton.

U

K-based wind developer Enterprize Energy revealed plans to develop a 3,400MW offshore wind park in Thang Long, offshore the south central province of Binh Thuan in Vietnam. The development of the country’s largest offshore wind farm borrows from and improves upon the firm’s experience in developing offshore wind farms in the UK, US and Taiwan.

In an interview with Asian Power, Enterprize Energy CEO Ian Hatton discussed initial plans for the Thang Long wind farm, including technological upgrades to its 9.5-10MW turbines and steel foundations, as well as its pioneering role in shaping Vietnam’s regulatory framework for offshore wind projects.

What are you currently working on? Can you share with us the progress of your projects?

At the moment we’re working on three projects. One is the Hai Long project in Taiwan and one is the Thang Long project in Vietnam. The other is a hybrid project in the UK. In Taiwan, we are the net 20% owner of the Hai Long project which has its key consents and off-take contracts.

In Vietnam, we are developing the Thang Long project which is nominally designed for the development of 3,400MW of power. We received a formal direction from the Prime Minister of Vietnam in January 2019 to proceed with survey works and to submit the project into the national power development plan.

Have you observed any differences between dealing with regulatory bodies in Vietnam and Taiwan?

In Vietnam, there is no bespoke regulatory framework for offshore wind. However, regulation does exist for practically every aspect that is required for such projects. What we’re doing together with EVN’s PECC 3, which is the state’s consultancy company, is preparing the project for inclusion in the National Power Development Plan. By working the project through the development process, it will effectively establish the regulatory framework for offshore wind in Vietnam by practical example.

The primary difference of course is the different political structure and a centrally planned economy versus one which is run by democratic institutions and so forth. There are other detail factors that come into play in Taiwan versus Vietnam but each country is very successful in its own right in economic terms.

What are the new upgrades that you’re incorporating into the Hai Long wind farm?

The exact technical specifications of the Hai Long project are confidential. Taiwan offshore wind projects have to take into account the potential occurrence of typhoons and seismicity; consequently, the Taiwan Strait is probably the most technically demanding environment to build an offshore wind project in the World and that comes at a price. It’s not like building offshore wind in Europe by any means.

Can you describe further how the foundations are adapted to seismic activity and typhoons?

The foundation is an evolution of the four-legged hurricaneresistant jacket that we had developed for the US Gulf of Mexico.

Basically, they will be more robust to cope with deeper water and seismic liquefaction risk. We’re looking at depths up to around 50 metres, which is much deeper than most European waters.

How is the Thang Long wind farm different from the Hai Long one?

Above the water line, the two are broadly similar in terms of wind

resource. Below the water line, Hai Long is in deeper water (to 50 metres) compared to Thang Long (25-45 metres). Typhoon risk is lower at Thang Long. Additionally, Hai Long is engineered to deal with the elevated occurrence of seismic activity on the Taiwanese continental shelf. Of course, the scale of the Thang Long Wind Project is much greater than Hai Long (3,400MW vs 1,044MW).

We believe it is currently the world’s largest contiguous offshore wind development.

The other difference is that we’ve already entered into agreements with the construction company to fabricate the structures just over 100 kilometres away from the site in Southern Vietnam. That guarantees a high level of localisation for those people and projects. Maybe 60-65% of flowing capital used to construct the project will end up in Vietnam. That’s a significant advantage for Vietnam.

And the other difference is that by developing the entire 3,400MW in a coordinated fashion, we’re able to programme the construction more efficiently to reduce cost which impacts the price of electricity delivered from the project. 3,400MW is a notional size. It could be significantly larger if the government decides that is what they need. Certainly, with a site of 2,000 sqkm, the project could host significantly more than 3.4GW. Because we’re planning to install the project between 2022 and 2027, we expect to see that wind turbine technology will evolve and improve. By 2027, it is very likely for example that turbines rated at 15MW will be commercially available. Our consenting activity will take that into account.

What is it like financing a project of this scale?

The first thing we’ve done is we’ve mandated Societe Generale to lead the structure and lead the financing. We’ve signed a mandate to lead on that front. We’ve worked with them before and they are a bank that supports projects which are ground-breaking.

You said that you plan to have the turbines on the water as early as 2023. How do you plan to execute this?

We are speeding the process up by parallel processing consenting, engineering, contracting and financing. It is very much subject to the approval process, financing and contracting but 2023 should be achievable for Phase 1 (600MW). The full project would be built in multiple phases to the full 3,400MW until 2027.

Are you investing in the transmission side of the power plant or does the Vietnamese government handle that?

We are responsible for engineering and funding everything from offshore to the onshore substation platform. Grid reinforcement beyond that point is currently the responsibility of EVN. We understand that this situation is under review by Government.

Back in March this year, I was honoured to be the first nonVietnamese person to address the central Economic Committee of the Communist Party on the subject of renewable energy. I was able to make a number of recommendations to facilitate the development of offshore wind in the country. One of the recommendations was to investigate the ‘build and transfer’ model that is prevalent in the UK as an option for Vietnam.

This helps with funding for transmission upgrades or the basic transmission infrastructure and is very similar in concept to the system used in the UK. We would be responsible for designing and funding the construction of the electrical export infrastructure, but then on energisation, the export infrastructure’s ownership will be transferred to another entity at a low cost of capital and that will help the project’s economics.

ASIAN POWER 13

COUNTRY REPORT: AUSTRALIA

Renewables are dominating Australia’s pipeline of power projects.

Australia risks neglect of blackout crisis over attempts to juggle baseload conflicts The country will need $400b to handle growing blackouts amidst the retirement of 60% of its baseload coal fleet.

A

ustralia’s energy sector will need $400b to push itself out of an increasing number of blackouts — with one of the biggest cases affecting 200,000 homes in Victoria in January — and the looming retirement of 60% of its coal-fired generation capacity by 2040, according to experts. The Australian Energy Market Operator (AEMO) estimates that up to 1.3 million households could be left without power over the coming summer under a worst-case scenario should breakdowns continue.

Moreover, in a summit, AEMO said that two out of every three connection

The country also ranked 55th out of 63 on energy infrastructure compared to its 29th position a decade ago on IMD’s 2019 World Competitiveness Yearbook.

June 2020 quarter base futures prices $/MWh

Source: Grattan analysis of Thomson Reuters Datastream (2019)

14 ASIAN POWER

applications they had received from renewable projects were located in weak parts of the network “where they simply don’t have the system strength to keep the system stable.”

“Either the grid design radically changes, or new baseload of some type is built,” a discussion paper released by Industry Super Australia (ISA), a research and advocacy body for Industry SuperFunds, revealed. “In the normal course, portfolio investors would be lining up to fund longterm solutions in this changing industry for Australia. But so far, the silence from investors is deafening.”

Data from Bloomberg New Energy Finance showed a 21% drop in renewables investment from 2018 to 2019, after surging to record levels in the previous two years. The country also ranked 55th out of 63 on energy infrastructure compared to its 29th position a decade ago on IMD’s 2019 World Competitiveness Yearbook.

Whilst significant amounts of renewable generation are being built in response to the closure of coal power stations and higher prices, this has not been accompanied by new dispatchable generation such as gas or pumped hydro, said Tony Wood, energy program director at the Grattan Institute, in a report.

Currently, 146 out of 202 (72.28%) major power projects across Australia are focused on the solar and wind sectors, based on Fitch Solutions’ Infrastructure Key Projects Database (KPD). Amongst renewables, hydropower partakes a small role in Australia’s power sector, and is not expected to grow significantly in the short to medium term. The only project in the pipeline is the $3.4b Snowy 2.0 Hydroelectric Project, which was approved in February but continues to face opposition from environmental groups.

This was also observed by the Australian Energy Market Commission (AEMC), which noted in a separate discussion paper how due to the current lack of locational price signals in the transmission framework, investors have located their generation or storage assets where the network has limited or no capacity for the additional capacity to be dispatched. Under the current framework, these parties are therefore finding it difficult to manage the risk that the existing transmission network will not be sufficient to accommodate them.

“The shift from dispatchable generation to variable renewable energy has driven political concerns about prices, and motivated policies such as Snowy 2.0 and the Underwriting New Generation

COUNTRY REPORT: AUSTRALIA Annual renewable shares of total generation by generation type

Source: The Australia Institute, National Energy Emissions Audit

Investments (UNGI) programme,” Wood said.

The Snowy Mountains 2.0 scheme builds on the original Snowy Mountains scheme aimed at making renewables reliable and filling in holes caused by intermittent supply and generator outages.

The Snowy 2.0 has an estimated cost of $4.8b (A$7b) for a capacity of 2GW, about half of the initial scheme. “Based on the Snowy case, Australia needs about a hundred Snowy Mountain 2.0 schemes at a total cost of $525b (A$700b). Opportunity costs are about 100 to 150 nuclear reactors. This would provide well over half Australia’s current primary energy needs,” ISA noted.

Solutions: bane or boon?

However, Wood argued that by trying to pick winners through the UNGI programme and Snowy 2.0, the government has made it harder for investors to deliver new dispatchable capacity, exacerbating the very price and reliability concerns that motivated such interventions.

“The impending entry of Snowy 2.0 and an unknown number of 12 shortlisted UNGI projects is very likely to have dissuaded and delayed other investments.

This level of government intervention was not present between 2005 and 2009 when the market last needed substantial news dispatchable capacity — and at that time private investors delivered 4GW of new dispatchable capacity,” he said.

Grattan Institute’s report highlighted that wholesale electricity prices had decreased whilst the National Energy Guarantee (NEG), an alternative policy to be developed by the Energy Security Board with support from the COAG Energy Council and consumer groups, was in the works, but began increasing after it was scrapped. “By early 2019, expected prices for power in 2020 were at levels similar to those seen in the troubled months of early 2017,” Wood observed.

Additionally, Wood noted that only

three UNGI projects, comprising the Vales Point upgrade in New South Wales, Reeves Plains in South Australia, and Gatton in Queensland, appear likely to be able to be ready quickly. But of these, Gatton does not appear to meet a pressing market need, whilst the Vales Point project is very small. “So they are unlikely to materially improve market outcomes even if they are delivered,” he said, adding that the long lead times of other UNGI-shortlisted projects will dissuade other, more prospective investments in the future.

ISA also noted in its discussion paper how other programmes to store potential energy may provide additional buffering, but at increasing expense and possible environmental cost.

“It is difficult to see what would happen if solar and wind went beyond, say 50% of electricity or about 10% of primary energy,” the research firm said. “The Tesla battery in South Australia has been a commercial and practical success, and extended use of this technology would alleviate short-term fluctuations.” But it would still not alleviate concerns about security.

“It is possible that beyond about 50% of electricity, some solar and wind may become stranded assets. This would begin to raise serious questions about the trajectory of the energy system. If carbon capture and storage were to become commercial, then coal would become a viable part of the mix.”

As of August 2019, the total grid share of renewable generation was 17.4%, and the renewable share of all generations, including rooftop solar, was 21.8%, data from the Australia Institute’s September National Energy Emissions Audit showed.

That said, these shares were said to be slightly lower than in the year to July 2019, due to the fall in hydro generation. Shares of variable renewable generation accounted for 10.6% for grid generation only, and 14.7% including rooftop solar.

Affordability vs. reliability With Australia’s commitment to a 26-28%

146 out of 202 (72.28%) major power projects across Australia are focused on the solar and wind sectors.

reduction on its 2005 emissions (597 Mt CO2-e) by 2030, government agencies agree the country may likely meet its target, thanks in part to closures and an ageing fleet. That said, Wood noted that pressuring companies over coal closures will make it harder for the market to deliver the price and reliability outcomes politicians and consumers want.

Prior to the challenges in 2016 and 2017, consumers were already unhappy about power prices due to excessive investment in electricity networks generous consumerfunded environmental subsidies and high retail margins that all forced historically high levels. “Only half of households and small businesses are satisfied with the power prices they pay. And consumers rate the value for money of electricity below that of comparable services, such as gas, water, mobile phones, the internet, insurance, and banking,” Wood said.

Wood also outlined how the closure of the Hazelwood Power Station in March 2017 led to a sudden increase in east-coast gas prices as gas exports ramped up, and an increase in coal prices all pushed wholesale electricity prices higher. Consequently, this seeped into higher retail prices, especially for manufacturing customers, as wholesale costs make up a larger portion of their bills compared to households’ bills.

“The short notice given before the closure of Hazelwood in early-2017 caused a delayed response, but there are clear signs that this response is now happening,” Wood explained.

About 9GW of solar and wind generation has been committed to be built in the National Electricity Market (NEM), with more than a third of this capacity already operating. “The amount of new generation committed is well above the amount needed to comply with the national renewable energy target, indicating that investment is occurring in response not only to subsidies but also high market prices,” Wood observed.

A fight has flared over the next planned coal closure — AGL Energy’s Liddell power station in New South Wales in 2023.

Despite AGL Energy’s seven-year notice of the closure, initially slated for 2022, the Federal government has fought to avoid Liddell’s closure, pressuring the company to extend the power station’s life or sell it to another operator.

“It is likely to prove futile, because the underlying economics of the plant are poor. New South Wales has too much ‘base load’ plant that needs to run constantly to remain profitable, and needs more flexible plant, likely gas, that can run less frequently and turn on and off in response to market conditions,” Wood said. “The best thing the Federal government can do is get out of the way and give investors a clear signal to replace Liddell.”

ASIAN POWER 15

ANALYSIS 1: JAPAN’S COAL LOANS

$5b of Japanese megabank loans flow into Asian coal projects despite heightened risks

Whilst this is just 0.2% of their loan books, exposure to coal could be higher through corporate loans, says InfluenceMap.

I

t is significant that concern over the risks of coal power projects in Asia is now ‘mainstreaming’ and becoming framed around material financial risk as coal is undercut by renewables and other energy sources. This is likely due to the growing scale of potentially ‘stranded’ coal power assets in these three countries: Indonesia, India, and Vietnam. All three countries have stranded coal power asset risk of approximately 3% of GDP based on Bloomberg NEF data.

In India, Japan’s megabanks fund about $300m of operating assets and $147m of under-construction projects. Vietnam is staring at about $205m of operating assets and $1.6b of under-construction assets.

And Indonesia, $1.1b of operating assets and $1.2b under construction.

Where the precise lending contributions of each company are not disclosed, the total value of private project finance/equity investment is allocated between companies. It should be noted that disclosure by both the Japanese banks and equity investors is generally poor and does not usually specify breakdowns of projects, fuel types or detailed timelines.

The data used to arrive at the estimates in the tables below derives primarily

Paiton Energy’s coal plant in Indonesia 16 ASIAN POWER

Vietnam is staring at about $205m of operating assets and $1.6b of underconstruction assets.

from Japanese government financing disclosures (Japan Bank for International Cooperation, Japan International Cooperation Agency, Nippon Export and Investment Insurance) — which tend to be more complete than those from the private sector — as well as company reports and project finance databases from the World Bank, SourceWatch, Profundo and MarketForces.

The three Japanese ‘mega-banks’ have project lending exposure to coal power in emerging economies totaling over $5b based on available disclosures. Whilst this represents just 0.2% of the banks’ aggregate loan books, their exposure to coal power is likely much higher through corporate loans, which represents a larger market than project lending but for which disclosure is poor or absent.

It should also be emphasised that whilst the value of this project exposure is minimal relative to the banks’ overall balance sheets, the potential risk it represents could be much greater, calling into question the soundness of such investments.

The following is a categorisation of risks to private sector investors and lenders in the context of coal power in emerging

Asian economies, with a focus on risks unique to coal power compared with other energy sources.

Indonesia’s coal risks In Indonesia, unused coal capacity is already a major concern, particularly in Java-Bali, which hosts many of the projects to which Japanese investors are exposed. Cost competitiveness could also be impacted by the availability of economically viable domestic coal reserves, which a 2016 review by PwC suggested may be insufficient for full lifespan supply to Indonesia’s existing and planned coal-fired power plants (CFPPs).

According to a 2018 PwC survey of over 100 investors, developers and government officials, regulatory uncertainty stemming from frequent inconsistencies and reversals in recent years, including significant reductions to the new power capacity installation targets laid out in PLN’s 2015 energy strategy, has emerged as a key concern for investors in the Indonesian power sector. Financial risks to investors have thus been minimal to date, with PPAs backed by the Indonesian state for the agreements’ full term.

However, in 2017 the Ministry of

ANALYSIS 1: JAPAN’S COAL LOANS Coal-Fired Power Plant Finance from Japanese Megabanks

Source: InfluenceMap

Energy and Mineral Resources issued a new regulation changing the timeframe for the ‘Take or Pay’ (TOP) system, wherein PLN pays for a specified amount of electricity at an agreed rate even if it is not consumed. Rather than the full PPA duration, the TOP is now only guaranteed “for a period of time.” As noted by global legal commentary forum CMS Law-Now and others, this creates space for alternative interpretations of the guarantee period (i.e. less than the full PPA term), potentially shifting losses from non-cost-competitive CFPPs from PLN to equity investors.

Two issue areas of potential significance for future risks are air pollution, with a civil suit filed against the government in July 2019, and challenges based on indigenous land rights, which have been levied successfully against the forestry industry, and could similarly be applied in challenging land acquisition for CFPPs. India’s coal risks In 2018, India generated roughly 75% of its power from CFPPs, an estimated two-thirds of which was already more expensive than renewables as of 2017.

The declining cost competitiveness of coal relative to renewables is reflected in India’s consistently higher rate of investment in new renewable capacity relative to coalfired capacity since 2017, with renewables installed at 40x the rate of net new coal in the first nine months of FY2018/19.

Just a decade ago, India’s energy development strategy was overwhelmingly weighted toward coal power due to its perceived affordability, with 600GW of coal power installations in the pipeline. Over 491GW of this capacity (500 projects total) have been cancelled in the past 8 years, likely due to the plummeting costs renewable energy, as well as the establishment of a carbon tax for both imported and domestic coal in 2010.

The Indian government has also introduced a suite of regulations to

incentivise renewable energy, including a full waiver of the transmission charge for all new projects commissioned before March 2022. The policy removes much of the risk of purchasing renewable energy, providing a strong push for distributors to source electricity from renewables over coal. Many thermal power assets in India are already deemed ‘stressed’ or ‘stranded’ by the Central Electricity Authority, with many unable to secure PPAs that would make the plants profitable.

Responding to this trend, in 2019, India’s largest integrated power company, Tata Power, announced an end to new coal power development. The declining likelihood of securing PPAs sufficient to ensure profitability presents a real financial risk to equity investors in particular. Though the renegotiation efforts cited here pertain to renewables PPAs, the precedent set by such proceedings could easily extend to coal power, particularly as the profitability of CFPPs continues to be challenged by competition from renewables.

The risk of project delay and cancellation from local opposition is particularly high in India. Analysis by SourceWatch found that opposition to CFPPs in India over the past decade has had a 67% rate of success of causing suspension or cancellation, compared to a 33% general rate for projects in India due to other causes. Unlike climaterelated concerns, these issues are specific to CFPPs, owing to the established links between the toxic by-products of coal-fired generation and adverse health impacts. Local opposition to coal power in India has also often involved major clashes with authorities, resulting in civilian injuries and even deaths.

Vietnam’s coal risks Vietnam’s energy is currently around 30% coal-fired, a majority of which depends on imported seaborne resources, which are fundamentally insecure in comparison to domestic production.

In 2018, India generated roughly 75% of its power from CFPPs, an estimated twothirds of which was already more expensive than renewables as of 2017.

Thus, the security of Vietnam’s coal supply is highly uncertain, particularly as the country now imports more coal than it exports — a trend expected to increase over the coming decade.

New research from Carbon Tracker Initiative based on Bloomberg NEF analysis finds that within one year, it will be cheaper to invest in new solar in Vietnam than new coal capacity, with new onshore wind following closely in 2021. Given the capital recovery period for coal projects is 15-20 years on average, the rapid decline in coal power’s cost competitiveness poses a substantial risk to the financial viability of new projects, particularly in an increasingly liberal energy market.

Vietnam’s energy system has started to undergo a major transformation beginning with the ongoing liberalisation of the energy supply market via the creation of the Vietnam Competitive Generation Market. Recently, the system has been opened to IPPs, with state-owned ETPC remaining the sole purchaser. However, this is only the first step in a long process of reform toward a fully competitive retail market by 2022 with multiple buyers. New regulations are also making the energy market increasingly renewables-friendly, including increased FiTs for wind.

The Ministry of Industry and Trade is also partnering with USAID to develop a ‘direct PPA’ policy that will enable direct consumer – IPP power purchases without the need for ETPC as an intermediary.

Importantly, the current system of long-term state-backed PPAs is generally considered incompatible with liberalised energy markets, making it likely that the PPA system may be altered or dismantled in the future as Vietnam’s energy liberalisation progresses.

MUFG, SMBC and Mizuho all recently came under fire from a global network of NGOs for announcing plans to finance the Van Phong 1 CFPP despite publishing new policies intended to restrict financing for new CFPPs. In the case of MUFG and Mizuho, the announcement of their support for Van Phong 1 fell within weeks of their new coal finance policies.

A recent report by Market Forces found 71% of the planned coal capacity in the three megabanks’ pipelines (for projects that have yet to reach financial close) is located in Vietnam. As criticism of Japanese banks’ involvement in overseas coal finance continues to mount, projects in Vietnam are therefore likely to become a primary target for globally coordinated campaigns, presenting an increasing risk to global reputation for investors. From “Thermal Coal in Asia: The Real Risks for Investors” by InfluenceMap ASIAN POWER 17

ANALYSIS 2: VIETNAM’S SOLAR SCHEME

Solar and wind will comprise 11% of renewables installed capacity by 2030.

Vietnam’s solar scheme proves sceptics wrong Much of the 4.46GW of its new capacity can be linked to the success of its solar feed-in tariff programme, says the IEEFA.

V

ietnam’s $0.09 per kWh solar feed-in-tariff (FiT) programme has just delivered 4.46GW of new capacity for the country’s fast-growing power market. This is an impressive achievement that validates the government’s step-by-step approach to market development and the ability of domestic and international developers to mobilise capital for scalable renewable energy (RE) portfolios.

It also highlights the ability of modular renewable projects to deliver much-needed capacity more rapidly than large-scale baseload fossil fuel projects that require large expenditures on associated infrastructure.

Vietnam’s policymakers have been smart to signal a gradual approach to the next phase of market development with a wind FiT program that is set to build momentum in the coming two years. Most wind projects thus far have been onshore, but Vietnam holds considerable potential for larger nearshore and offshore projects.

Now that some promising new regional developers have established themselves in the market, investors will be watching to see how the government defines its renewable ambitions with new targets in the Power Development Master Plan VIII and plans to upgrade the grid.

Vietnam’s medium-term plans for its renewable energy sector are now taking shape after two busy years of project development. With 4.46GW of solar power now coming online as the solar FiT program hits its 30 June deadline, attention is shifting to plans for new grid investment and the next phase of the FiT program which focuses on the burgeoning wind sector.

Vietnam’s renewables programme is gaining momentum at a strategic time. Vietnam has already electrified 99% of its population; now demand for electricity is poised to increase.

18 ASIAN POWER

The government aims to have renewable sources, including biomass, smallscale hydro, wind, and solar, account for 21% of installed capacity by 2030.

The revised National Power Development Master Plan VII (Master Plan VII) currently forecasts commercial growth to grow at around 10.3% annually until 2020. It is then expected to decrease somewhat, but still produce robust growth until 2030. The plan calls for capacity additions of between 6,0007,000MW per year to meet increased demand.

To achieve this, the government has a mix of strategies.

They have a large pipeline of foreign-invested fossil fuel IPPs, but many of these baseload projects are facing headwinds due to market developments that are raising doubts about the suitability of old carbon-heavy technology for a young market focused on cleaner growth. To kick start the development of renewables capacity, the government launched the solar and wind FiT programs: the solar FiT was in force from 1 June 2017 to 30 June 2019; the wind FiT, from 1 November 2018 to 1 November 2021. Since implementing them Vietnam has come up the learning curve quickly.

In the current iteration of the Master Plan, the government aims to have renewable sources, including biomass, small-scale hydro, wind, and solar, account for 21% of installed capacity by 2030. Of that, solar and wind will comprise approximately 11%. The central issue is that the government needs to increase installed capacity rapidly and simultaneously find a way to finance a grid buildout that can accommodate a more diverse generation mix, all the whilst keeping power prices stable. The next Master Plan is expected to address this, which is anticipated to be finalised in 2020.

It’s now wind’s turn The Vietnamese government initially focused heavily on solar and, despite complaints about the PPA from some quarters, managed to attract hefty investments from an array of actors.

ANALYSIS 2: VIETNAM’S SOLAR SCHEME Increasing Installed Capacity Needed to Meet Demand

Source: MoIT3

Developers expect to bring around 4.46GW of solar power online to qualify for the solar FiT – a figure which is well above early cautious estimates.

Credit where credit is due: Vietnam’s policymakers have managed to cultivate a flourishing solar market from a low base, turning Vietnam into a regional “powerhouse” for solar PV. This is no mean feat and it’s clear that regional developers now regard Vietnam as a market where partnerships for the longer term can be rewarded.

It appears that the government wants to try and replicate this success with wind. The question is: will it be able to? It aims to lay a solid foundation for its wind sector before the 1 November 2021 FiT deadline.

By then, the government hopes to have 1GW of installed wind power. Currently, seven wind farms are operational with a joint capacity of 331MW. Much of this new capacity will be in southern Vietnam, where wind speeds are higher – between Qui Nhon and Ho Chi Minh City they average between 7-11m/s. Most projects up to now have been onshore; however, as one panelist at the Global Wind Energy Council (GWEC) Conference in Hanoi in June emphasised: there is simply not enough space for many more onshore projects.

The close proximity has given rise to issues such as the wake effect, subsequently reducing capacity factors of wind power plants. By contrast, potential offshore sites are much larger, but they have not been fully studied.

Offshore wind’s potential Indeed, the greatest potential for Vietnam’s wind sector theoretically lies offshore. Of the 6,200MW of wind power the Vietnamese government wants to install, the overwhelming majority would have to come from offshore wind farms. As noted above, wind speeds are higher in the south and with relatively shallow water depths of between 20 to 50 meters, the coasts are ideal for nearshore and offshore projects.

Moreover, these projects would be closer to areas where unmet load growth is expanding the quickest – Ho Chi Minh City, for instance. Vietnam could also leverage its existing domestic supply chain for offshore wind. Manufacturers such as GE and South Korea’s CS Wind already produce wind turbine parts in Vietnam.

However, when and how offshore will proliferate is unclear at this stage. Some developers have committed themselves: Gulf Energy just signed a PPA with EVN for its 310MW offshore wind farm in Bin Tre. Others, like Mainstream Renewable Power, are still investigating the feasibility of a project as large as 800MW. Perhaps the most ambitious project which appears to be progressing is the Ke Ga development backed by Enterprize Energy and a consortium including Vietnamese and international technical partners. The project, which targets 3,400MW of capacity offshore Binh Thuan Province, hopes to commission 600MW as soon as 2023.

Seven wind farms are operational with a joint capacity of 331MW.

The Enterprize project will be important to monitor.

Offshore projects require careful coordination with multiple levels of government and the market will watch closely to see how key project milestones are managed.

Another factor that merits attention is whether there will be enough transparency around the process to encourage other developers to accept the risks of a long development cycle in exchange for a foothold in one of South East Asia’s fastest growing renewables markets.

Thus far, local banks have been the main funders of renewables capacity coming online via the FiT programme.

But with relatively small balance sheets, it’s natural to question whether Vietnam’s domestic banks will be able to keep up with the funding needs of the RE sector, where funding needs could outpace domestic funding capacity. It is estimated that $5.6b in debt financing would be needed to construct all planned wind projects by 2030. Consequently, for the wind sector to develop further, projects will likely need access to new sources of capital.

‘Unbankable’ PPA New sources of targeted green financing may be one potential source of capital for Vietnam’s wind ambitions, but it is notable that traditional international project funders have been reluctant to commit themselves. They have stayed away due to the view that the standard PPA falls short on the guarantees that are common in more developed markets. Complaints by bankers about Vietnam’s PPA are not new and there are numerous reasons why players without deep pockets or strong local relationships have perceived it to be ‘unbankable’: 1. International lenders have lacked confidence in the credit standing of statebacked EVN (the off-taker), Vietnam’s monopoly power provider; 2. Inadequate grid capacity and, hence, the risk of curtailment can be high depending on project location; and 3. EVN retains a termination clause in the PPA. Vietnam’s barebones PPA made it difficult to access traditional project financing from conventional overseas project finance banks that are used to settled regulatory regimes in lower risk markets. In an attempt to placate these funders, the Ministry of Industry and Trade (MoIT) issued a revised PPA in January of this year – the new draft Circular No.2. However, only minor adjustments were made, such as clarifying technical curtailments.

Whilst this disappointed some bankers committed to pushing for better risk-adjusted spreads, it has not been a barrier to those players willing to take more risk or with the capacity to balance sheet finance. This new dynamic is evidenced by how the first phase of the FiT process for solar projects has delivered more capacity than expected to the grid.

Wind FiTs Although some potential investors have been put off by the lack of investor-friendly incentives on offer, others believe

Vietnam’s Planned Growth of Wind Capacity

Source: MoIT.11 ASIAN POWER 19

ANALYSIS 2: VIETNAM’S SOLAR SCHEME that the slow but steady administration of Vietnam’s renewable policies has also built confidence among potential investors. In response to market developments, the FiTs were increased for onshore and offshore projects in November 2018 when Decision No. 391 was implemented, increasing the upside for those capable of accepting market risks.

Though the relative increases to the offshore FiT is substantial, the FiT programme remain frugal compared to headline figures offered in other regional markets. This was the case for solar as well. Despite considerable market risk, investors, focused on growth opportunities, arrived in force, exceeding all expectations. Now, due to the success of the solar FiT program, MoIT is not under the same pressure to hurry capacity additions from the wind FiT. It’s notable that Vietnam’s successful solar FiT has caught some regional developers by surprise. As recently as April, market experts at an industry conference in Singapore were still expecting that the FiT would deliver new capacity of only 1.5 to 2.5GW range through the course of 2019.

With an added solar capacity of 4.46GW, EVN will need to increase its focus on upgrading grid capacity to reduce curtailment of RE projects, many of which are in isolated areas and need to be connected via new higher voltage transmission lines. These take time to build In the interim, EVN is looking to buy itself some time by implementing upgrades to its existing grid. One key to this may be EVN’s ability to tap into donor funded initiatives such as the partnership with GIZ on the Smart Grids for Renewable Energy and Energy Efficiency (SGREE), which focuses on crafting a sound legal and regulatory framework for smart grids.

In the meantime, it is important to recognise that Vietnam’s guarded approach reflects domestic political realities. In 2018, the Vietnamese government launched an anti-graft campaign that have left many officials looking over their shoulders.

The new normal Any effort that would require substantial political capital – such as revising the wind PPA – could draw additional oversight that might slow down decision-making and increase project completion risk. Officials have, therefore, been reluctant to act and there is an expectation that, for the time being, the PPA will remain in its current form.

With the surge of solar and wind projects in Vietnam has come a welcome spike in investment from a diverse range of investors. Alongside the larger, more experienced international players, and offshore specialists like Enterprize Energy, regional companies with track records in the power and energy sector have been very active in the

FiTs for Wind Projects

Source: Baker Mckenzie. 21

20 ASIAN POWER

With an added solar capacity of 4.46GW, EVN will need to increase its focus on upgrading grid capacity to reduce curtailment of RE projects.

Vietnamese market. B. Grimm with backing from the ADB, Gulf Energy, and Banpu are all present. AC Energy, a subsidiary of the Ayala Corporation, is working with its partners – AMI Renewables, BMI Group, and the Blue Circle – to enter Vietnam’s wind and solar sector.

Thailand’s Superblock Plc, plans to install 700MW worth of wind capacity and invest $1.76b. Furthermore, Japanese and South Korean investors and developers are becoming increasingly engaged. For instance, the Japanese Bank for International Cooperation (JBIC) recently established a $200m green credit line with the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) for solar projects.

Chinese actors also appear to be watching the market closely. Chinese companies and banks have played an important role in the market, but not as developers.

Though the Vietnamese government is wary of approving Chinese-led projects, they seem more than happy to have them play a crucial, indirect role as providers of new-generation, low-cost equipment with generous funding from Chinese banks. For example, Thailand’s B Grimm used a Chinese EPC and Chinese suppliers to construct solar farms in Vietnam.

B .Grimm paid just 10% of what they owed their Chinese partners up front and only needs to begin repaying the rest over a year after construction started.

Subsequently, this financial flexibility has given B.Grimm room for maneuver in Vietnam’s market.

Push for competition Vietnam’s solar and wind FiT programs have permitted the nation’s power sector policymakers to conduct a valuable structured market experiment, enabling the government to gauge how much capital they can attract as part of a process of price discovery. When compared to other FiTs in the region, the Vietnamese tariffs are low and complaints about the PPA are routine, but that did not deter investment from experienced Asian developers and new entrants with existing funding capacity. The government is planning its next steps to foster more competition. The first round of solar FiTs has expired, but already a new round of solar FiTs from July 2019 to 2021 has been tabled.

However, it has yet to be approved by the central government and it is not yet in force. Initial reports suggest that the new FiT could be designed to encourage more geographic diversity for new solar capacity by offering higher tariffs for solar projects in regions with less solar radiation and less capacity. In regions with high solar radiation, and more existing solar capacity, the new tariff could provide more incentives for developers who also invest in storage to take the pressure off of the grid.

Moving away from FiTs, the government has signalled that auctions will likely play a role in the future. Though the deadline for wind FiTs is farther down the road – 1 November 2021 – the results of the solar auctions will likely impact how the wind regulatory environment develops – Vietnam’s solar and wind sectors are intertwined.

Another vital planning tool that will shape the next round of market opportunities will be the Power Development Master Plan VIII (Master Plan VIII).

Key issues will be how grid development is designed to support the growth of RE and how corporate PPAs, behind-the-meter RE, and new storage options will be factored into the plan. From “Vietnam’s Solar FiT Program Delivers” by Michiel Vriens and Melissa Brown, Institute for Energy Economics and Financial Analysis

YOU HAVE TO BE FLEXIBLE NOWADAYS. SO DOES YOUR ENERGY.

Jenbacher J412

Renewable energy is great. But with renewable energy comes the need for complementary power. And for that, you need INNIO. Our flexible gas engines already run on a variety of special fuels, and we’re working on more! Synthetic fuels, also called e-fuels—such as hydrogen, methanol and ammonia— also can complement renewable energy sources. Stay tuned!

Flexible power solutions. That’s INNIO.

TOMORROW BELONGS TO THE BOLD.

ASIAN POWER 21

Find out who emerged as the victors in the Asian Power Awards 2019

O

ver a hundred (138) senior executives and prime industry figures flocked to Shangri-La Hotel, Kuala Lumpur on 4 September for the awards night of the Asian Power Awards 2019 in Malaysia. The number of nominations jumped to a record-high of 200.

The awards were expertly judged by John Yeap, Partner, Head of Energy – Asia at Pinsent Masons; Mike Thomas, Partner at The Lantau Group; Petteri Harkki, Regional Director for Asia of Poyry; Wen Bin Lim, Director of Power and Utilities at KPMG; and Gervasius Samosir, Partner at YCP Solidiance.

Asian Power publisher Tim Charlton deeply congratulated the awardees, saying, “It’s a great pleasure to see so many people here tonight at the 15th year of the Asian Power Awards. This year is our biggest year in terms of number of nominations. It’s good to see that this region, which is often given a bad rep for too much coal is actually doing the most in the world in terms of renewables.”

Check out this year’s winners: HYDRO POWER PROJECT OF THE YEAR • GOLD - CORDILLERA HYDRO ELECTRIC POWER CORPORATION KAPANGAN HYDRO PROJECT BY GHD • SILVER - MURUM HYDROELECTRIC PLANT BY SARAWAK ENERGY BERHAD • BRONZE - GULPUR HYDROPOWER PROJECT BY MIRA POWER LIMITED BIOMASS POWER PROJECT OF THE YEAR • GOLD - CHANA GREEN SOUTHERN THAILAND RENEWABLE BIOMASS ​PROJECT BY ASIAN DEVELOPMENT BANK • SILVER - SHANDONG BIOGAS CHP POWER PROJECT IN CHINA

BY VPOWER GROUP INTERNATIONAL HOLDINGS LIMITED • BRONZE - RPG IMPACT PROJECT BY RE POWER GROUP COMPANY LIMITED GEOTHERMAL POWER PROJECT OF THE YEAR • GOLD - RANTAU DEDAP GEOTHERMAL POWER PROJECT BY ASIAN DEVELOPMENT BANK • SILVER - SORIK MARAPI GEOTHERMAL POWER PROJECT BY KS ORKA RENEWABLES PTE LTD COAL POWER PROJECT OF THE YEAR • GOLD - ULTRA-SUPERCRITICAL PROJECT OF CHINA RESOURCES POWER (TANGSHAN CAOFEIDIAN) CO. BY CHINA RESOURCES POWER HOLDINGS CO., LTD. POWERED BY EMERSON • SILVER - THE TALIN POWER PLANT RENEWAL PROJECT BY TAIWAN POWER COMPANY • BRONZE - THAR COAL POWER PROJECT BY ENGRO POWERGEN THAR LIMITED

GAS POWER PROJECT OF THE YEAR • GOLD - AL DUR 2 CCGT IPP BY ACWA POWER • SILVER - SHANGHAI CAOJING COGENERATION CO LTD • BRONZE - MUARA KARANG BLOCK 1 PLTGU BY PT PEMBANGKITAN JAWA-BALI NUCLEAR POWER PROJECT OF THE YEAR • GOLD - TIANWAN NUCLEAR POWER PLANT UNITS 1-4, LIANYUNGANG CITY, CHINA POWERED BY ROSATOM EAST ASIA (BEIJING) CONSULTING CO., LTD. NATURAL GAS-FIRED POWER PROJECT OF THE YEAR • GOLD - JAWA-1 LIQUIFIED NATURAL GAS-TO-POWER PROJECT BY ASIAN DEVELOPMENT BANK • SILVER - TANJUNG PRIOK POWER PLANT POWERED BY MITSUBISHI HITACHI POWER SYSTEMS, LTD. OIL SHALE POWER PROJECT OF THE YEAR • GOLD - ATTARAT PROJECT 400 KV S/S (OIL SHALE) BY NATIONAL ELECTRIC POWER COMPANY FAST-TRACK POWER PLANT OF THE YEAR • GOLD - MYINGYAN II GAS POWER PLANT IN MYANMAR BY VPOWER GROUP INTERNATIONAL HOLDINGS LIMITED • SILVER - CAT HIEP SOLAR PROJECT 50 MW, BINH DINH PROVINCE POWERED BY JUWI RENEWABLE ENERGIES PRIVATE LIMITED 22 ASIAN POWER

• BRONZE - MOBILE POWER PLANT AND FIXED TYPE GAS ENGINE POWER PLANT PACKAGE VII. PT PLN POWERED BY CONSORTIUM OF PT PP (PERSERO) TBK. EPC DIVISION AND WARTSILA TRANSMISSION & DISTRIBUTION PROJECT OF THE YEAR - GOLD • GOLD - QUEEN’S HILL SUBSTATION: FOSTERING THE SUSTAINABLE DEVELOPMENT OF HONG KONG THROUGH GREEN INNOVATIONS BY CLP POWER HONG KONG LIMITED • SILVER - ATTARAT PROJECT 400 KV S/S (OIL SHALE)

BY NATIONAL ELECTRIC POWER COMPANY • BRONZE - DISTRIBUTION SUBSTATION AUTOMATION BY DUBAI ELECTRICITY AND WATER AUTHORITY DUAL FUEL POWER PLANT OF THE YEAR • GOLD - MOBILE POWER PLANT AND FIXED TYPE GAS ENGINE POWER PLANT PACKAGE VII. PT PLN POWERED BY CONSORTIUM OF PT PP (PERSERO) TBK. EPC DIVISION AND WARTSILA • SILVER - RPG IMPACT PROJECT BY RE POWER GROUP COMPANY LIMITED SOLAR POWER PROJECT OF THE YEAR - CHINA • THE HEISHUI PHOTOVOLTAIC POVERTY ALLEVIATION PROJECT

BY CHINA RESOURCES POWER HOLDINGS CO., LTD. SOLAR POWER PROJECT OF THE YEAR - INDIA • GREENKO’S 816 MWP KURNOOL ULTRA MEGA SOLAR PARK BY GREENKO SOLAR POWER PROJECT OF THE YEAR - INDONESIA • SOLAR PV POWER PLANTS 42 MW IN 4 LOCATIONS - VENA ENERGY

BY JO PT PP (PERSERO) TBK. EPC DIVISION AND NARI GROUP SOLAR POWER PROJECT OF THE YEAR - JORDAN • GREEN CORRIDOR BY NATIONAL ELECTRIC POWER COMPANY SOLAR POWER PROJECT OF THE YEAR - KOREA • RENEWABLE ENERGY COMPLEX AND CHALLENGING [YEONGHEUNG POWER DIVISION] BY KOREA ENERGY (KOEN) SOLAR POWER PROJECT OF THE YEAR - MALAYSIA • SARAWAK ALTERNATIVE RURAL ELECTRIFICATION SCHEME (SARES) BY SARAWAK ENERGY BERHAD SOLAR POWER PROJECT OF THE YEAR - PHILIPPINES • 2.16MWP SOLAR ROOFTOP PROJECT - NEW ZEALAND CREAMERY, PHILIPPINES BY PROINSO UK AND SOLAREN RENEWABLE ENERGY SOLUTIONS CORPORATION SOLAR POWER PROJECT OF THE YEAR - THAILAND • B.GRIMM CERTIFIED CLIMATE BOND FOR SOLAR

BY ASIAN DEVELOPMENT BANK SOLAR POWER PROJECT OF THE YEAR - UAE • DEWA PHASE IV CSP PROJECT BY ACWA POWER SOLAR POWER PROJECT OF THE YEAR - VIETNAM • DAU TIENG PHOTOVOLTAIC SOLAR POWER PROJECT IN VIETNAM • B. GRIMM POWER & XUAN CAU BY SINOHYDRO CORPORATION LIMITED & POWERCHINA HUADONG ENGINEERING CORPORATION LIMITED WIND POWER PROJECT OF THE YEAR - CHINA • CHINA RESOURCES NEW ENERGY (DATONG YANGGAO) WIND POWER CO., LTD. BY CHINA RESOURCES POWER HOLDINGS CO., LTD. WIND POWER PROJECT OF THE YEAR - INDIA • GREENKO RAYALA WIND POWER PRIVATE LIMITED BY GREENKO WIND POWER PROJECT OF THE YEAR - INDONESIA • TOLO 1 WIND POWER PLANT 72 MW - VENA ENERGY BY CONSORTIUM OF PT PP (PERSERO) TBK. EPC DIVISION, SIEMENS AND SIEMENS GAMESA RENEWABLE ENERGY WIND POWER PROJECT OF THE YEAR - OMAN • DHOFAR WIND PROJECT BY RURAL AREAS ELECTRICITY COMPANY “TANWEER” WIND POWER PROJECT OF THE YEAR - THAILAND • HANUMAN WIND PROJECT BY ENERGY ABSOLUTE PUBLIC COMPANY LIMITED ENVIRONMENTAL UPGRADE OF THE YEAR - AUSTRALIA • COOBER PEDY HYBRID RENEWABLE PROJECT BY EDL ENVIRONMENTAL UPGRADE OF THE YEAR - CHINA • SHANGHAI SHENERGY CHONGMING POWER GENERATION CO. LTD. POWERED BY SIEMENS ENVIRONMENTAL UPGRADE OF THE YEAR - INDIA • GREENKO RAYALA WIND POWER PRIVATE LIMITED BY GREENKO

ENVIRONMENTAL UPGRADE OF THE YEAR - INDONESIA • PT. GH EMM INDONESIA COAL FIRED POWER PLANT 2 X 150 MW BY CHINA ENERGY INVESTMENT CORPORATION

INNOVATIVE POWER TECHNOLOGY OF THE YEAR - THAILAND • BLOCKCHAIN-BASED P2P ENERGY TRADING TRIAL PROJECT @T77 BY BCPG PUBLIC COMPANY LIMITED

ENVIRONMENTAL UPGRADE OF THE YEAR - KOREA • PERFORMANCE IMPROVEMENT OF DESULFURIZATION FACILITIES FOR BORYEONG THERMAL POWER PLANT 7 AND 8 BY KOMIPO

INNOVATIVE POWER TECHNOLOGY OF THE YEAR - TURKEY • EKORE PV PANEL MANUFACTURING PLANT BY EKORE RENEWABLE ENERGY

ENVIRONMENTAL UPGRADE OF THE YEAR - PAKISTAN • GULPUR HYDROPOWER PROJECT BY MIRA POWER LIMITED ENVIRONMENTAL UPGRADE OF THE YEAR - PHILIPPINES • CARBON SINK AND BIOINDICATOR PROJECT - ECO PARK AND BUTTERFLY SANCTUARY POWERED BY SAN MIGUEL CONSOLIDATED POWER CORPORATION ENVIRONMENTAL UPGRADE OF THE YEAR - TAIWAN • TAICHUNG POWER PLANT AQCS RETROFIT PROJECT BY TAIWAN POWER COMPANY ENVIRONMENTAL UPGRADE OF THE YEAR - THAILAND • RPG IMPACT PROJECT BY RE POWER GROUP COMPANY LIMITED ENVIRONMENTAL UPGRADE OF THE YEAR - UAE • DEWA SUBSTATION SUSTAINABLE INITIATIVE - GO GREEN

BY DUBAI ELECTRICITY AND WATER AUTHORITY POWER PLANT UPGRADE OF THE YEAR - AUSTRALIA • LOY YANG B UNIT 2 TURBINE UPGRADE PROJECT BY LYB OPERATION & MAINTENANCE PTY LTD POWER PLANT UPGRADE OF THE YEAR - CHINA • CRP NORTHERN CHINA MANZHOULI WIND POWER HEAT SUPPLY PROJECT BY CHINA RESOURCES POWER HOLDINGS CO., LTD.

INNOVATIVE POWER TECHNOLOGY OF THE YEAR - UAE • 1,177 MW NOOR ABU DHABI, THE WORLD’S LARGEST SINGLE-SITE SOLAR PROJECT BY ABU DHABI TRANSMISSION AND DISPATCH COMPANY (TRANSCO) SMART GRID PROJECT OF THE YEAR - AUSTRALIA • ADVANCED DATA ANALYTICS – UNLOCKING BENEFITS OF SMART METERING BY JEMENA SMART GRID PROJECT OF THE YEAR - SINGAPORE • SP GROUP’S SMART METERING FOR OPEN ELECTRICITY MARKET POWERED BY ITRON, INC. SMART GRID PROJECT OF THE YEAR - TAIWAN • DESIGNING A PLATFORM AND SYSTEM FOR POWER WHEELING AND DIRECT SUPPLY IN TAIWAN BY TAIWAN POWER COMPANY SMART GRID PROJECT OF THE YEAR - UAE • DEWA SMART GRID STATION BY DUBAI ELECTRICITY AND WATER AUTHORITY INFORMATION TECHNOLOGY PROJECT OF THE YEAR - AUSTRALIA • POWER CHANGERS 1.0 BY JEMENA INFORMATION TECHNOLOGY PROJECT OF THE YEAR - CHINA • CR POWER EASTERN CHINA NEW ENERGY OPERATION AND MAINTENANCE CO., LTD. EARLY WARNING SYSTEM FOR WIND TURBINES BY CHINA RESOURCES POWER HOLDINGS CO., LTD. INFORMATION TECHNOLOGY PROJECT OF THE YEAR - INDIA • DIGITAL TRANSFORMATION IN TATA POWER BY AVEVA PTE LTD

POWER PLANT UPGRADE OF THE YEAR - INDONESIA • PT. INDONESIA POWER’S TAMBAK LOROK BLOCK 2 GAS TURBINE CONTROL AND EXCITATION SYSTEM PROJECT POWERED BY EMERSON

INFORMATION TECHNOLOGY PROJECT OF THE YEAR - INDONESIA • INFORMATION TECHNOLOGY BASED ON COMANDO [CONDITION MONITORING AND DATA OPERATION] UTILIZATION IN POWER PLANT OPERATION AND MAINTENANCE BY PT PJB SERVICES

POWER PLANT UPGRADE OF THE YEAR - KOREA • KOREA EAST-WEST POWER CO., LTD.’S THE INTEGRATED CONTROL SYSTEM RETROFIT FOR BOILER AND TURBINE CONTROL BY DONGHAE BIO-THERMAL POWER PLANT POWERED BY EMERSON

INFORMATION TECHNOLOGY PROJECT OF THE YEAR - PHILIPPINES • SAP S4 AND ARIBA MIGRATION AND IMPLEMENTATION POWERED BY MASINLOC POWER PARTNERS CO. LTD

POWER PLANT UPGRADE OF THE YEAR - PHILIPPINES • SHIP UNLOADER UPGRADE FOR MASINLOC COAL-FIRED THERMAL POWER PLANT POWERED BY MASINLOC POWER PARTNERS CO. LTD INNOVATIVE POWER TECHNOLOGY OF THE YEAR - AUSTRALIA • BALLARAT BATTERY ENERGY STORAGE SYSTEM BY ENERGYAUSTRALIA POWERED BY FLUENCE, A SIEMENS AND AES COMPANY (USA) INNOVATIVE POWER TECHNOLOGY OF THE YEAR - CHINA • HUANENG SHANGHAI COMBINED CYCLE POWER CO., LTD. POWERED BY SIEMENS INNOVATIVE POWER TECHNOLOGY OF THE YEAR - INDIA • IMPLEMENTATION OF FIELD FORCE AUTOMATION AT TATA POWER DELHI DISTRIBUTION LIMITED TOWARDS OPTIMIZATION OF OPERATIONS FIELD CREWS TO IMPROVE CUSTOMER SATISFACTION BY TATA POWER DELHI DISTRIBUTION LIMITED INNOVATIVE POWER TECHNOLOGY OF THE YEAR - INDONESIA • PT. GH EMM INDONESIA LARGE SCALE ROTARY STEAM TUBE DRYER TECHNOLOGY BY CHINA ENERGY INVESTMENT CORPORATION INNOVATIVE POWER TECHNOLOGY OF THE YEAR - KOREA • PERFORMANCE IMPROVEMENT OF DESULFURIZATION FACILITIES FOR BORYEONG THERMAL POWER PLANT 7 AND 8 BY KOMIPO

INDEPENDENT POWER PRODUCER OF THE YEAR - INDONESIA • PT. GH EMM INDONESIA BY CHINA ENERGY INVESTMENT CORPORATION INDEPENDENT POWER PRODUCER OF THE YEAR - MALAYSIA • QUANTUM SOLAR PARK MALAYSIA 150 MWAC BY ITRAMAS CORPORATION SDN BHD INDEPENDENT POWER PRODUCER OF THE YEAR - MYANMAR • VPOWER GROUP INTERNATIONAL HOLDINGS LIMITED INDEPENDENT POWER PRODUCER OF THE YEAR - SAUDI ARABIA • ACWA POWER POWER UTILITY OF THE YEAR - BANGLADESH • BANGLADESH POWER DEVELOPMENT BOARD’S BARAPUKURIA 275 MW THERMAL POWER PLANT POWERED BY ABB POWER UTILITY OF THE YEAR - CHINA • SHANGHAI CAOJING COGENERATION CO LTD POWER UTILITY OF THE YEAR - INDIA • TATA POWER DELHI DISTRIBUTION LIMITED POWER UTILITY OF THE YEAR - INDONESIA • PT PEMBANGKITAN JAWA-BALI POWER UTILITY OF THE YEAR - JORDAN • NATIONAL ELECTRIC POWER COMPANY

INNOVATIVE POWER TECHNOLOGY OF THE YEAR - MYANMAR • TAMAR VPOWER ENERGY FUND I - ORCAN INTERNATIONAL ORC WASTE HEAT RECOVERY TECHNOLOGY IN MYINGYAN II POWER PLANT BY VPOWER GROUP INTERNATIONAL HOLDINGS LIMITED

POWER UTILITY OF THE YEAR - MALAYSIA • QUANTUM SOLAR PARK MALAYSIA 150 MWAC BY ITRAMAS CORPORATION SDN BHD

INNOVATIVE POWER TECHNOLOGY OF THE YEAR - PHILIPPINES • SAN BERNARDINO OCEAN POWER PROJECT BY H&WB ASIA PACIFIC (PTE LTD) CORPORATION

POWER UTILITY OF THE YEAR - PAKISTAN • K-ELECTRIC LIMITED

INNOVATIVE POWER TECHNOLOGY OF THE YEAR - SINGAPORE • SP GROUP’S SMART METERING FOR OPEN ELECTRICITY MARKET POWERED BY ITRON, INC. INNOVATIVE POWER TECHNOLOGY OF THE YEAR - TAIWAN • DESIGNING A PLATFORM AND SYSTEM FOR POWER WHEELING AND DIRECT SUPPLY IN TAIWAN BY TAIWAN POWER COMPANY

POWER UTILITY OF THE YEAR - MYANMAR • VPOWER GROUP INTERNATIONAL HOLDINGS LIMITED

POWER UTILITY OF THE YEAR - PHILIPPINES • SAN MIGUEL CONSOLIDATED POWER CORPORATION POWER UTILITY OF THE YEAR - UAE • ABU DHABI TRANSMISSION AND DISPATCH COMPANY (TRANSCO) CEO OF THE YEAR • PREEYANART SOONTORNWATA OF B.GRIMM POWER PLC. ASIAN POWER 23

ABU DHABI TRANSMISSION AND DISPATCH COMPANY (TRANSCO)

ACWA POWER

CHINA RESOURCES POWER HOLDINGS CO., LTD.

CLP POWER HONG KONG LIMITED

ENGRO POWERGEN THAR LIMITED

EMERSON

GHD

ITRAMAS CORPORATION SDN BHD 24 ASIAN POWER

ASIAN DEVELOPMENT BANK

GREENKO

SP GROUP

JEMENA

KOMIPO

MIRA POWER LIMITED

PT PJB SERVICES

B.GRIMM POWER PLC.

PT PEMBANGKITAN JAWA-BALI

SHANGHAI SHENERGY CHONGMING POWER GENERATION CO. LTD.

PT. GH EMM INDONESIA

SARAWAK ENERGY BERHAD

SINOHYDRO CORPORATION LIMITED & POWERCHINA HUADONG ENGINEERING CORPORATION LIMITED

RURAL AREAS ELECTRICITY COMPANY (TANWEER)

PT PP (PERSERO) TBK. EPC DIVISION

TAIWAN POWER COMPANY

TATA POWER DELHI DISTRIBUTION LIMITED

VPOWER GROUP INTERNATIONAL HOLDINGS LIMITED ASIAN POWER 25

EVENT COVERAGE: POWER-GEN ASIA 2019

POWER-GEN Asia was attended by 9,280 industry experts.

Malaysia shakes up rules as renewables parity looms larger For its latest tender for large-scale solar, the lowest price dipped below the cost for baseload gas power at 17.77 cents per kWh.

W

hen the Malaysian government launched tenders for 365MW capacity of large-scale solar power (LSS3) in 2019, it expected prices to be more or less 32 cents per kWh, based on previous tenders. But the market defied expectations when prices went below the price of baseload gas-based power in the country, with the lowest being 17.77 cents per kWh. The results of the LSS3 tenders highlight that grid parity for solar power looms larger than ever in the country, according to Malaysian energy minister Yeo Bee Yin. Malaysia recognises renewables parity as one of the main drivers of its energy transition and has proposed to invest $7.83b (RM33b) in incentivising installations and deployment. This breathtaking investment is in line with the newly approved Malaysia Electricity Supply Industry (MESI) 2.0, which aims to boost the share of renewables in the energy mix to 20% by 2025.

In her speech at the opening of POWER-GEN Asia 2019, Yeo shared that they are being assisted by the country’s Securities Commission in identifying the 21 action items that will help facilitate the $7.38b investment.

Some of the action items proposed raising the budget on incentivising the private sector’s investment in renewables.

The government plans to continue 26 ASIAN POWER

Malaysia recognises renewables parity as one of the main drivers of its energy transition and has proposed to invest $7.83b in incentivising installations and deployment

tax allowances and exemptions for investors in the country’s renewable energy projects. It is also looking to enhance green energy trading through bilateral agreements with private sector players. Yeo previously announced that they are mulling costs and benefits of a market for mandatory renewable energy certificates (RECs).

Market disruption Apart from parity-driven investments, market disruption and demand management are the other two key themes in Malaysia’s energy transition. State-backed utility Tenaga Nasional Berhad (TNB) is internally restructuring its generation, transmission & distribution, and retail businesses, not only to prepare for liberalisation but to draw the line between the key assets of its regulated and non-regulated businesses. The utility is also investing a total of RM18b in its expansion plan.

Datuk Fazlur Rahman, chief retail officer at TNB, said that they are diversifying into other energy sources and are eyeing to add 80MW of large-scale solar and 365MW of solar photovoltaic (PV) into their portfolio.

TNB’s need to bulk up its portfolio comes on the back of the 27.9% growth in Malaysia’s electricity usage, primarily driven by the commissioning of the MRT. “Running businesses as usual is no longer sustainable,” Rahman commented.

Benefiting from TNB’s multi-billion investment is its big data push. The utility is looking at energy storage, the improvement of myTNB, its app and online portal, as well as other programmes related to data analytics and behavioural science under its Home Energy Programme.

TNB is also looking at electric vehicles, albeit the sector is still nascent and infrastructure is barely adequate, with only 300 public EV facilities available at the moment. For now, Rahman said that the development of the EV market is not yet substantial to address Malaysia’s energy transition, citing the need for collaborations across verticals in order to grow.

Minister Yeo also added that net energy metering will no longer be solely handled by TNB and will address demand for solar rooftops, which have the potential to be installed in 3.2 million homes, 21,000 standalone factories, and 1,000 shopping complexes. The government is also looking to introduce metering into compressed biogas power.

In response, TNB aims to have 1 million smart metres installed in homes by 2020, Rahman said.

Regional collaboration Malaysia might also carve a role in the international power trading space through increased collaboration with Southeast Asian nations, Yeo said. Previously, Malaysia inked a multilateral agreement with Laos and Thailand in which the former will be the buyer of electricity whilst the latter will provide transmission facilities.

“This is the first but not the last for the ASEAN power grid,” she said.

In order to build more collaborations with neighbouring countries, Yeo noted that the regional regulatory framework must be similar across countries. Transparency must also be a priority in these reforms not only to satisfy investors but also to ensure certainty in power planning.

“This is a challenging time, but this is also an exciting time,” the minister said.

Malaysia’s energy transition is one of the many topics discussed at POWERGEN Asia 2019, the largest gathering of professionals from the electricity and power sector. The event took place on 3-5 September 2019 at MITEC, Kuala Lumpur, Malaysia and attracted a record attendance of over 10,500 power and energy professionals.

The next POWERGEN Asia, colocated with the Asian Utility Week, will take place on 22-24 September 2020 at ICE, Jakarta, Indonesia.

ASIAN POWER 27

CO-PUBLISHED CORPORATE PROFILE

Myingyan II project in Myanmar

Hong Kong VPower Group stands out in the Asian power industry The company won five awards at the Asian Power Awards, including Power Utility of the Year for Myanmar.

H

ong Kong-listed VPower Group, a specialist in the distributed power industry, was crowned as the big winner at the Asian Power Awards 2019. The power company excelled with its outstanding performance in Myanmar and China, receiving five prestigious awards: Independent Power Producer of the Year – Myanmar; Power Utility of the Year – Myanmar; Fast-Track Power Plant of the Year – Gold; Innovative Power Technology of the Year – Myanmar; and Biomass Power Project of the Year – Silver.

“Myanmar is one of our core markets with operation. We are proud to see our highly efficient, fast-track, flexible and reliable power generation solutions supporting the local economic and community development.”

VPower Group has served the power market with its highly efficient engine-based distributed power solutions for two decades. Since its investment in self-operated distributed power stations in 2012, it has grown into a leading distributed power stations owner and operator in Asia with footprint in Myanmar, Indonesia, China, Sri Lanka, Peru, etc.

Rorce Au-Yeung, co-chief executive officer of 28 ASIAN POWER

VPower Group, said, “It is always our mission to provide stable and reliable electricity to the people in need. Myanmar is one of our core markets with operation. We are proud to see our highly efficient, fast-track, flexible and reliable power generation solutions supporting the local economic and community development.” Striving to be a global leader in the distributed power market, a platform is also developed to facilitate its upcoming business expansion into the power market in the United Kingdom and Brazil.

To stay ahead of the curve, VPower Group has continuously deployed resources to upgrade the energy efficiency of its solutions to reduce fuel cost and carbon emission, as well as develop a series of environmentally friendly waste derived power generation systems for the utilisation of waste heat.

Biogas project in Shandong, China

In the award-winning Myingyan II project in Myanmar, VPower Group installed organic rankine cycle (ORC) systems in the power station for waste heat conversion, which successfully enhanced the overall energy efficiency. Rorce commented, “It is our first time to apply ORC technology in our power station which marks our achievement in improving energy efficiency.

It is a huge honour to be awarded Innovative Power Technology of the Year in Myanmar.

We would like to share the glory with ORCAN International, an investee company of Tamar VPower Energy Fund I, for implementing the localised ORC technology into real application.”

In parallel with global energy transformation towards decentralisation, decarbonisation and digitisation as well as fuel mix revamping in different countries, VPower Group has diversified its power solutions by supporting different kinds of fuel, including natural gas, liquified natural gas and biogas.

“We developed our first biogas project in China in 2018. It is also our first project to be equipped with combined heat and power system for the supply of electricity and steam simultaneously. The commencement of commercial operation of the project has been an encouraging event to us, which demonstrates our capability in diversifying the fuel source of our projects and developing ‘waste-to-energy’ solutions,” Rorce said.

In anticipation of evolving market conditions, Ambrose Lee, chief strategy officer and head of capital markets/corporate finance, is confident with VPower Group’s prospect in the global power market. “In emerging markets, power deficit has been a structural issue which may take longer time to overcome. In order to increase the electrification rate in the local markets, our fast-track and reliable power solution serves as a prompt alternative to bridge the demand and supply gap,” explained Ambrose, adding that “In developed countries, the growing use of renewable energy implies instability to the national grid, which gives rise to increasing demand for fast-track distributed power solutions like ours to balance and stabilise the grid system. Given our operational excellence, we are poised to capture the tremendous business opportunities in developed countries.”

VPOWER GROUP

Power Utility of the Year Myanmar

Fast-Track Power Plant of the Year Gold

+ 20 YEARS

Independent Power Producer of the Year Myanmar

Innovative Power Technology of the Year Myanmar

Biomass Power Project of the Year Silver

 � � �

Â?

ASIAN POWER 29

CO-PUBLISHED CORPORATE PROFILE

B.Grimm’s Preeyanart Soontornwata (right) receives the CEO of the Year award from Tim Charlton (left), editor in chief of Asian Power.

141 years of B.Grimm: Empowering the world compassionately

O

ver 141 Years of doing business with compassion began with the Siam Dispensary, and a desire to save people’s lives. B.Grimm has been at the forefront of Thailand’s health, infrastructure and industrial developments. These include Southeast Asia’s largest irrigation system, 1,500 kilometres of wide canals, followed by telegraph concession, pioneering telecommunication systems, mass transit development and power generations.

The fastest growing arm of B.Grimm and one that is carrying on the tradition of 141 years of ‘Doing Business with Compassion for the Development of Civilisation in Harmony with Nature’ is B.Grimm Power, the leading private power producer in Thailand. With a firm belief that businesses and society must function together in harmony in order to be sustainable and contribute to Thailand`s competitiveness as a hub in Southeast Asia, B.Grimm Power is meeting future demand by driving the development of a diverse mix of energy technologies whilst realising their vision of ‘Empowering the World Compassionately’.

Focusing on cleaner energy and renewable energy production through its co-generation and renewable energy power plants, B.Grimm Power plans to continuously expand its solar and wind power energy-generating projects. B.Grimm Power also supports the government’s policy to promote renewable energy.

The company has a clear and robust business growth direction with strong partnerships both in Thailand and overseas. This year is the big step for B.Grimm Power not only to grow portfolio capacity by 40% but also to successfully start commercial operations of two large solar projects in Vietnam with total installed capacity of 677 MW: (1) Dau Tieng 1&2 project, the largest solar project in Southeast Asia with total installed capacity of 420 MW and (2) Phuyen TTP with installed capacity of 257 MW. These 30 ASIAN POWER

are based on the plan to establish the B.Grimm Platform as a leading power developer in Asia, with neighbouring countries benefitting from B.Grimm’s core expertise.

As of September 2019, B.Grimm Power had 45 operating projects with total installed capacity of 2,892 MW, including 17 cogeneration power plants in Thailand, 24 solar farms in both Thailand and Vietnam, three hydro power projects in Laos and diesel power generation in Vietnam. Furthermore, the company is currently constructing the 5 MW waste-to-energy power project in Thailand with the scheduled commercial operation date by the end of 2019.

Contributions from renewable energy is currently 30%, whilst capacity from overseas investment

“Looking ahead, B.Grimm has an ambitious goal to raise its overall capacity to 5,000 MW by 2022.”

Dau Tieng 1&2 project, the largest solar project in Southeast Asia

contributes 25% of total portfolio.

Looking ahead, B.Grimm has committed to a pipeline to operate and develop a total of 56 power plants with total capacity of 3,245 MW by 2025. With the ambitious goal is to raise its overall generating capacity to 5,000 MW by 2022 and the target to raise overseas contribution to 30%, B.Grimm is currently exploring a number of opportunities in the region, such as Vietnam, the Philippines, Cambodia, Malaysia and South Korea.

Continued growth is due to B.Grimm Power’s longstanding expertise and experienced management and engineering teams, worldclass advanced technology, strong business partnerships and signed power purchase agreements.

In addition, B.Grimm Power cooperates with the global partnerships, including Energy China, State Grid of China, KEPCO, and LGChem in order to make the fully integrated smart energy, smart grid and energy storage system (ESS) and to ensure that the company is at the forefront of the development.

At the same time, the company is strongly committed to the environment, natural balance and the quality of life of the people in surrounding communities.

“We are moving forward to become the leader in empowering society in a sustainable manner,” said Preeyanart Soontornwata, President of B.Grimm Power. “This is how we translate our vision of ‘Empowering the World Compassionately’ into real action.”

CONTACT Company name: B.Grimm Power Plc Address: Dr. Gerhard Link Building, 5 Krungthepkreetha Rd., Huamark, Bangkapi, Bangkok 10240, Thailand Contact number: 66-2710-3528 Fax: 66-2379-4258 Email: ir@bgrimmpower.com Website: www.bgrimmpower.com

ASIAN POWER 31

CO-PUBLISHED CORPORATE PROFILE

PT PP (Persero) Tbk fast-tracks mobile power plants in four remote sites across the Indonesian archipelago

30MW mobile power plant in Kelurahan Gunung Telihan, Bontang City

I

ndonesia’s electricity consumption continues to surge with increased access to electricity or electrification and changes in people’s lifestyles.

Based on data from the Ministry of Energy and Mineral Resources, Indonesia’s electricity consumption in 2017 reached 1,012 kilowatts per hour (kWh) per capita, up 5.9% from the previous year. For this year, the government targets public electricity consumption to increase to 1,129 kWh per capita. To anticipate this increase, the Indonesian government boosted the installed capacity of the plant this year to 65 gigawatts (GW) from last year’s realisation of 60 GW, becoming part of the programme to add another 35 GW to Indonesia from the current government. Indonesia’s electrification ratio is targeted to reach 100% by 2025. At present, the electrification ratio in all provinces in Indonesia is above 70%, except East Nusa Tenggara and Papua.

Therefore, in supporting the implementation of the government programme in encouraging the development of 35 GW in Indonesia, and increasing the electrification ratio particularly in eastern Indonesia and remote areas, PT PLN Persero is pushing to multiply the construction of small, scattered, mobile power plants within a short construction period, based on a dual-fuel concept for the reliability of power plants in terms of fuels availability.

At the beginning of 2017, PT PP (Persero) Tbk as one of the leading construction and investment companies in Indonesia was trusted

by PT PLN to carry out the construction of four plants at the same time (in one-body contract) which were separated and located in 32 ASIAN POWER

a remote area for Dual Fuel Mobile Power Plant.

Contractually, the power plant consists of: • MPP (Mobile Power Plant) 20MW Nabire PLTMG: Located in Nabire Regency, Papua Province, with a construction period of 6 months • MPP (Mobile Power Plant) Ternate 30MW PLTMG: Located on Ternate Island, North Maluku Province, with a scheduled construction period of 6 months • MPP (Mobile Power Plant) 20MW Flores MHP: Located in Labuhan Bajo Village, West Manggarai Regency, East Nusa Tenggara Province, with a scheduled construction period of 12 months • MPP (Mobile Power Plant) PLTMG Bontang 30MW: Located in Kelurahan Gunung Telihan, Bontang City, East Kalimantan Province, with a construction schedule of 9 months.

In running the project, PT PP (Persero)

cooperates with Wärtsilä Finland Oy as a consortium partner (as well as the supplier for the main equipment gas engines). The machine type used in this power plant was the Wärtsilä 20V34DF type for power plants in Ternate and Bontang, with a total number of eight engine units engine, and the Wärtsilä 16V34DF type for power plants in Nabire and Flores with a total number of six engine units. All engine units are fabricated and sent directly frvom Finland to Indonesia through sea shipping. The conditional contract with PT PLN also included engineering, procurement, and construction (EPC) work and operation & maintenance for 5 years.

PT PP (Persero) has made a tremendous effort to be able to deliver the project to the owner, in terms of quality, delivery time, costs, and safety.

The plant is expected to be a reliable power plant and to sustainably provide energy resources to the Indonesian people and excellent business to the PT PLN for the future.

Despite all the challenges during the construction period, such as limited resources, the length of transportation delivery (both main equipment and other supporting materials), the geographical challenges, weather conditions and limited time, the project team found absolute motivation in proofing and delivering the four projects efficiently.

Through good and positive synergy between all stakeholders, working partners (subcontractors), consortium partners and the client (owner), the obstacles and challenges that were expected to arise in the process merely added colour to the project. Without this narrative, the power plant wouldn’t be delivered amazingly and fully operational to support the government programmes in increasing the electrification ratio throughout Indonesia.

Currently, the power plants are smoothly running and the Indonesian people in remote areas are reaping the best benefits, allowing them to enjoy life’s meaning and the beauty of Indonesia.

“PT PP (Persero) Tbk EPC Division has made a tremendous effort to be able to deliver the project to the owner, in terms of quality, delivery time, costs, and safety.”

20MW gas engine power plant in Nabire Regency, Papua Province

ASIAN POWER 33

CO-PUBLISHED CORPORATE PROFILE

Gulpur Hydropower Project in Kotli, Azad Jammu and Kashmir

Mira Power wins two awards for 102MW hydropower project in Pakistan

M

ira Power (an independent power producer or IPP), a subsidiary of Korea South East Power Co. (KOEN), is currently developing the 102MW Gulpur Hydropower Project in Kotli, Azad Jammu and Kashmir (AJK). Recommended by the Asian Development Bank and the International Finance Corporation as a case study in the hydropower sector, the project was financed by K-Exim, IFC, ADB and CDC and cosponsored by Daelim and Lotte and is expected to be online this year.

Since the acquisition by KOEN, the Gulpur hydropower plant has been developed on a fasttrack basis. However, during the financing phase, the company faced a number of problems.

“At one stage the project was almost shelved being non-financeable due to availability of endangered and critically endangered species in the Poonch River and declaration of Poonch River as National Park, but we never gave up and worked on various ideas, specifically the implementation of the new concept of net gain,” said Nadim Ullah, Senior Manager HR & Admin, Mira Power.

He explained that the idea was presented to the AJK Environmental Protection Agency, related NGOs and lenders via a joint conference call, which was quickly followed by a session of questions and answers. Nadim added that the participants jointly agreed with the idea of net gain.

For pushing forth with the Gulpur hydropower project, Mira Power won the Environmental Upgrade of the Year for Pakistan and the Bronze Award for Hydro Power Project of the Year during the recent Asian Power Awards. “We understand that the awards being won by Mira 34 ASIAN POWER

“At one stage the project was almost shelved being non-financeable, but we never gave up and worked on various ideas, specifically the implementation of the new concept of net gain.”

Power is recognition and proof of our untiring efforts and professionalism,” said the company in a statement.

In view of Pakistan’s power policy, the hydropower market of Pakistan is an attractive market to invest in. KOEN is, therefore, searching for more investment opportunities in Pakistan whereby acquisition of two more projects is already under final discussions.

The Gulpur hydropower plant falls administratively in the Kotli District of Azad Jammu and Kashmir, a region which has a population of over 4 million. The site is located about 5 kilometres south of Kotli city on Poonch River, a tributary of Jhelum River, and about 170 kilometres from Islamabad and 285 kilometres from Lahore.

Mira Power was set up to design, construct, own, operate and maintain the 102MW Gulpur hydropower plant under the Government of Pakistan’s Policy for Power Generation Projects 2002, as adopted in Azad Jammu and Kashmir, the western portion of the larger Kashmir region which has been the subject of a dispute between India and Pakistan since 1947 and between India and China since 1962.

Min Byeong Soo, CEO of Mira Power

CONTACT Company name: Mira Power Limited Address: 1st Floor, Square Eleven Plaza, Street No.1, MPCHS, E-11/1, Islamabad, Pakistan Contact number: 92-51-2100985-6 Fax: 92-51-2114359 Email: info@mira-power.com Website: https://www.mira-power.com/

ASIAN POWER 35

CO-PUBLISHED CORPORATE PROFILE

The Amburayan River in Kapangan, Benguet, site of COHECO’s 60MW run-of-river clean energy project

Infusing a new kind of energy in the Cordilleras The Cordillera Hydro-Electric Company is investing US$200m for a 60MW run-of-river energy project.

L

ong exploited for its natural resources, the Cordillera region is being infused with a new kind of energy that respects the environment and cares for the proud, indigenous people who populate the mountain range in the Northern Philippines. The Cordillera Hydro-Electric Company (COHECO) is developing a site that straddles the towns of Kapangan and Kibungan in Benguet, for its US$200m run-of-river clean energy project. It has appointed GHD as Owner’s Engineer, providing technical advisory, project management, construction monitoring, and supervision services. The strong partnership, with a shared vision of not just providing clean energy but also uplifting the lives of the indigenous people, has resulted in COHECO’s project being named Best Hydropower Project of the Year at the Asian Power Awards 2019.

A run-of-river energy project is one of the cleanest power generating projects available today, because it uses the river’s natural flow to drive turbines that generate electricity. Currently, COHECO has the largest single run-of-river facility being set up in the country, with enough power for an estimated 60,000 Filipino homes.

“With the help of GHD, we are better able to bring development opportunities and economic growth,” said Xavier “Eckie” Gonzales, president and chief executive officer of COHECO. For his part, Darren Shrives, General Manager of GHD in the Philippines, shared that the Asian Power award “reflects our commitment to create value for our clients, our employees, and the communities that benefit from our work.”

Beyond generating clean energy, however, COHECO has taken the extra step of infusing new energy in the communities it operates, helping the mainly Kankanaey tribe who populate the area. “For far too long, the needs of the people have been neglected, even as various companies have come to exploit the natural resources of their communities,” said Gonzales. “By partnering 36 ASIAN POWER

with them and working with them to protect and rejuvenate the natural environment, we can generate energy that not just powers villages, but empowers the people living in them.”

COHECO will generate 60MW of clean energy by tapping part of the Amburayan River, located in a region known as the “watershed cradle of the Northern Philippines.” Instead of a dam, COHECO will set up a weir designed to maintain the 0.8 cubic meters per second water threshold set by the National Water Resources Board. This allows the river to maintain a constant, natural flow downstream.

“Beyond the economics of power generation,” said Gonzales, “we seek to materially elevate the economic and environmental foundation of Benguet. We will protect watersheds and look after the region’s biodiversity. And we will work hand-in-hand with the people to preserve their rich, cultural heritage.”

By end 2019, COHECO will have finished planting 52,600 forest and fruit trees, and 120,000 by 2023. It is working with local farmers to develop a sustainable coffee venture, by planting high-value arabica trees together with

“We seek to materially elevate the economic and environmental foundation of Benguet. We will protect watersheds and look after the region’s biodiversity.”

pine trees—allowing the mountains to recover from years of deforestation.

The on-going construction of roads, the generation of jobs in the local communities, and the recognition and respect for the tribal culture have been greatly appreciated by the indigenous people. COHECO secured free and prior informed consent (a requirement of Philippine law) from the indigenous people in 2015. Peter Begawen, a tribal elder of the Kankanaey tribe in Kapangan, showed off the vehicles they received from the company, explaining that these have been useful in bringing people to the hospital and sending supplies to the communities.

Indeed, such is the hope of the indigenous people that they, literally, wrote songs about COHECO at a cañao—a ceremony to celebrate progress and give thanks—in June 2019.

During the ceremony, Albert Mayamnes, former mayor of Kibungan, shared that “with the coming of Eckie Gonzales and the allFilipino management team of COHECO, we feel that our hopes and aspirations for our people and our homes can finally come true.”

COHECO Chairman Xavier “Eckie” Gonzales performing the cañao ritual with members of the Kankanaey tribe in Kibungan, Benguet, last June 25, 2019

ASIAN POWER 37

Head Office : 2098 M Tower Building, 12th Floor, Sukhumvit Road, Phra Khanong Tai, Phra Khanong, Bangkok 10260, Thailand Tel. 66 (0) 2335 8999 Fax. 66 (0) 2335 8900 www.bcpggroup.com www.facebook.com/bcpggroup

BCPG Public Company Limited

CO-PUBLISHED CORPORATE PROFILE

Dubai Energy and Water Authority’s head office

Dubai Energy and Water Authority wins three trophies at Asian Power Awards

D

ubai Energy and Water Authority (DEWA) won three trophies at the 15th Asian Power Awards in three categories, at a ceremony held in Kuala Lumpur, Malaysia. This new achievement underscores DEWA’s excellence and leadership in the global energy sector.

DEWA has won Smart Grid Project of the Year for its work on the DEWA Smart Grid Station, which uses a variety of smart grid technologies to generate power through renewable sources, such as solar, and wind power, to maximise energy efficiency through real-time monitoring of control systems, especially during peak load, to transform and control load, and water conservation.

It also won Environmental Upgrade of the Year for the DEWA Substation Sustainable Initiative associated with green energy projects, and Transmission & Distribution Project of the Year for the Distribution Substation Automation.

Saeed Mohammad Al Tayer, Managing Director and CEO of DEWA, congratulated the teams working on the three winning projects. “DEWA’s accomplishment at the Asian Power Awards reaffirms our efforts to enhance the UAE’s international prestigious position in the field of sustainable development and green economy, and its commitment to achieve the vision of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to make Dubai the smartest and happiest city in the world,” said Al Tayer.

“DEWA is committed to the UAE Centennial 2071, UAE Vision 2021, and the Dubai Plan 2021 to establish Dubai as a smart and sustainable city, by finding a balance between sustainable development and environmental preservation for generations to come. In line with our vision to become a globally leading sustainable innovative corporation, we seek to shape the future of the local, regional, and global energy sectors.

We will do this through government innovation 38 ASIAN POWER

“DEWA is committed to the UAE Centennial 2071, UAE Vision 2021, and the Dubai Plan 2021 to establish Dubai as a smart and sustainable city.” and by keeping pace with the Fourth Industrial Revolution and adopting innovative disruptive technologies in various fields, including AI, robotics, IoT, and 3D printing to anticipate and shape the future of energy,” added Al Tayer.

“We are committed to provide extraordinary energy infrastructure to meet all needs of sustainable development in the Emirate, establish electricity and water and renewable energy projects based on best international standards of efficiency, availability and reliability. Winning the Environmental Upgrade of the Year for DEWA Substation Sustainable Initiative shows our excellence in public facilities and the priority we give to innovation to improve our performance.

This has streamlined the testing of high-voltage cables in the transmission stations between the transformer and the gas-insulated switches, in addition to reducing the cost and work that includes the use of SF6 gas by 85% in the gasinsulated key room rather than installing multiple test adapters, thereby simplifying test operations, through a world-class electricity and water infrastructure in the Emirate. This will showcase Dubai’s state-of-the-art public facilities as well as its focus on renewable energy. We are also building a wide and integrated smart grid, that is a key component of our strategy to develop an advanced infrastructure to support Dubai’s efforts to become a smart and happy city. The smart grid strategy contains 10 programmes to be completed over the short, medium and

long-term by 2035. These programmes are Advanced Metering Infrastructure for Electricity, Advanced Metering Infrastructure for Water, Asset Management, Distribution Automation, Information Technology Infrastructure, Transmission Automation, System Integration, Telecommunications, Big Data and Analytics, and Security. This will help us to serve our customers better, by identifying opportunities for future improvements within our sector,” concluded Al Tayer.

In 2018, DEWA won two awards in the ‘Transmission & Distribution Project of the Year’ and ‘Smart Grid Project of the Year’ categories.

The Asian Power Awards witnesses immense competition between many organisations, under the supervision of a jury of international energy experts. The Awards are considered one of the most prestigious awards in the electricity field in Asia.

Saeed Mohammad Al Tayer, Managing Director and CEO of DEWA

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ASIAN POWER 39

40 ASIAN POWER

How do you power the lives of Australians?

By ‘bringing energy to life’ At Jemena we’re bringing energy to life with gas and power solutions that help Australians survive and thrive.

We’re bringing energy to life so Australians can see a brighter and cleaner future ahead. We’re preparing our electricity network for more household solar and we’re supporting businesses and communities to benefit from renewable technologies.

We believe the future of energy is bright, so we’re bringing energy to life for everyday Aussies who hope for a better and greener future.

ASIAN POWER 41

42 ASIAN POWER

ASIAN POWER 43

TATA POWER DELHI DISTRIBUTION LIMITED

A UTILITY LEADING OTHER UTILITIES TOWARDS REFORM

Tata Power-DDL is a unique name amongst firms when it comes to transforma�on of Power distribu�on sector. It created a benchmark level of opera�on in Delhi with a record reduc�on of losses by 84%, system reliability at 99.6% and adop�on of state-ofart technologies. Being a power distribu�on u�lity, Tata Power-DDL scores over all the service providers through its in depth knowledge of the business processes. It has leveraged its 17 years of opera�on to support improvement of other na�onal and global u�li�es. Building up on its four-fold strengths of being a Power Distribu�on u�lity, Change Management exper�se, Idea Capital and IT& Technology Exper�se, Tata Power-DDL has been offerings services laden with domain experience as well as a consultant's vision.

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44 ASIAN POWER

TATA Power Delhi Distribution Limited NDPL House, Hudson Lane, Kingsway camp, Delhi -110009, India business.development@tatapower-ddl.com Fax + 91 11 2746 8042 www.tatapower-ddl.com

SERVING TO SUPPORT IMPROVEMENT

ASIAN POWER 45

OPINION

KOHE HASAN

Moving towards renewable and sustainable energy in Sri Lanka: an uphill battle?

S

ri Lanka has been one of the fastest growing economies in South Asia in recent years. Following a 30-year civil war, Sri Lanka has seen a sharp rise in energy use and demand over the past decade as it transitions from a predominantly rural agricultural economy to an urban economy. Accordingly, its energy future must be secured by meeting energy demands through the development and adoption of domestically produced renewable sources of energy, thereby reducing the economic burden of its energy imports. That said, the cost of renewables can be rather prohibitive.

Globally, the need for a profound transformation of the world’s energyproducing infrastructure is widely recognised amidst mounting concerns about global climate change. However, for Sri Lanka in particular, where a significant portion of the population still battles poverty and lacks access to basic energy needs, long-term environmental sustainability concerns are often overshadowed by more immediate concerns about energy affordability. Therefore, an outright elimination of thermal generation may be too hasty for Sri Lanka at this point in time.

Ambitious plans afoot In April 2016, 171 countries, including Sri Lanka, convened at the United Nations headquarters in New York to sign the Paris Agreement on Climate Change. Sri Lanka is also one of 43 countries in the Climate Vulnerable Forum, a global partnership of countries that are disproportionately affected by the consequences of global warming, and has pledged to generate 100% of its energy from renewable sources as early as possible, and by 2050 at the latest. The future of renewables in Sri Lanka is bright, given the significant strides made by various stakeholders towards using fully renewable energy for electricity generation. For example, in 2017, the government gave the green light to the development of a renewable energy project in Punarin, comprising a hybrid of wind (240MW) and solar (800MW).

In the same vein, the 2016 Suriya Bal Sangramaya programme involves the installation of rooftop solar panels with the stated goal of attaining a total capacity of 200MW by 2020. In addition, a syndicate of banks, including Sri Lanka’s Hatton National Bank, arranged an LKR9b loan facility in 2018 for the construction of Western Power Company’s revolutionary 10MW wasteto-energy power plant in Kerawalapitiya, Muthurajawela. Western Power Company, a subsidiary of the publicly traded Aitken Spence, has scheduled the power plant to be fully operational by 2020, after which it will use 700 tonnes of municipal solid waste daily.

Whilst the Sri Lankan government’s long-term renewables aspirations are certainly heading in the right direction, it would be apposite to consider their practical implications. The 2050 journey is a marathon, not a sprint.

Accordingly, the government is likely to find success by fine-tuning the most appropriate approach to take, bearing in mind the (i) suitability of fossil fuels for Sri Lanka’s short-term economic development; (ii) overstated environmental impact of coal; and (iii) cost of renewable energy sources.

The Sri Lankan government’s approach has so far been to push for the rapid development of wind, solar, small-scale hydro and other renewables, but the renewables sector is still not expected to grow robustly in the coming years. For now, the sector is unavoidably hampered by the relatively high costs of installation and operation compared to traditional methods of power generation.

Further, in the next 20 years, success in attaining many of the 2050 goals will hinge on whether renewables can become a mainstay of the Sri Lankan energy mix. At present, it is uncertain whether such measures will be implemented, leading to some uncertainty among investors.

The state has provided subsidies to enhance the appeal of renewable 46 ASIAN POWER

Kohe Hasan Partner, Reed Smith Coal and renewables production across Asia

Source: World Nuclear Association

energy resources with the aim of diversifying the energy sector. However, these subsidies could balloon to the point of being no longer viable, at which point it would become prudent to rebalance the energy mix in favour of fossil fuels instead.

Additionally, before thermal energy is replaced entirely, a nuanced approach would be wise. Since LNG and natural gas have been known to be approximately as clean as renewables, it would be worthwhile exploring incorporating them into the energy mix, particularly given the natural gas discoveries in the Mannar Basin off the north-west coast of Sri Lanka. That leaves coal as a possible target for change, warranting a closer look.

The economic suitability of coal As can be seen in the following table, coal is still widely used today, and will continue to be used in the future, in both developing and developed nations such as Japan, China and India, notwithstanding the Paris Agreement and various low-emissions plans and ambitious climate-action commitments.

From the table above, with coal power making up more than half of the total energy produced in developing countries such as China and India, it is evident that these countries are still heavily dependent on coal in driving economic development. Full decarbonisation is therefore unlikely be an immediate priority for these countries compared to key issues such as economic growth and poverty alleviation. Likewise, it would be prudent for Sri Lanka to follow suit in taking a pragmatic approach to decarbonisation.

Coal is not so dirty after all Perceiving all coal as irretrievably dirty would be to gloss over the issue.

Coal as a whole is not the enemy – inefficient generation by coal is. Possibly, a better approach would be to explore how developing countries can use low- or zero-carbon-emission alternatives to traditional fossil fuels.

Demonstrably, coal still has a future role in light of clean coal technology (CCT) because it can be burnt more efficiently and is less polluting.

Unfortunately, in many developing countries, the harnessing of CCT’s environmental benefits has been hampered both by a lack of public awareness and policy priority, and often a lack of the necessary institutional and financial capacity.

Nonetheless, strong government support for the goal of reducing carbon emissions in general could ease the greater adoption of CCT. Accordingly, Sri Lanka might be wise to take a leaf out of Japan’s book by investing in the ‘clean-coal’ energy sector, rather than entirely disregarding coal. Indeed, the Sri Lankan government is already aware of the economic benefits, as demonstrated by its endorsement of the proposed construction of several highly efficient and super-critical coal-fired plants. Kohe Hasan would like to thank Mr Gamini Wanasekara, former deputy chairman of the Ceylon Electricity Board, for his invaluable assistance in connection with this article.

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START UP SECRETS FROM GRAB, ZALORA, FUNDING SOCIETIES,SMARTKARMA, AND SPACEMOB BIKE-SHARING FIRMS GEAR UP FOR A CAR-LITE SOCIETY WILL AMAZON KILL THE RETAIL STARS? SINGAPORE BONDS: WHO’S BORROWING WHERE?

• 5 hottest areas to buy property right now • Commercial vs residential, which is better?

• Mega mergers are underway for real estate firms

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OPINION

CHEE MENG TAN

Unlocking the potential of solar water solutions

T

he world has woken up to the vast potential of renewables with nations across the globe ramping up their efforts to switch to renewable fuel sources to reduce carbon emissions and combat climate change. In fact, two-thirds of the worldâ&#x20AC;&#x2122;s new generation capacity in 2018 came from renewables, with solar energy continuing to be the fastest growing renewable.

Whilst the role of solar energy in reducing carbon emissions is wellunderstood, its potential to fight climate change and build a sustainable future goes beyond that. A critical climate change mitigation strategy and sustainability goal that solar energy can help realise is ensuring water access for all.

The threat of water running out is more present than ever for Asia with water demand forecasted to increase by 55% in Asia by 2050, thanks to a rapidly increasing population. Meanwhile, the usable water supply is shrinking amidst rampant pollution and extreme weather events such as droughts. According to a recent study by MIT researchers, an additional 200 million people across Asia would be vulnerable to severe water shortages by 2050.

Ensuring a secure and sustainable supply of water for all is a highly complex and multi-faceted issue. On one hand, many remote locations in the region lack the infrastructure and energy needed to access water. On the other hand, many developing areas with access to water resources are unable to pay for clean water.

One way to address both the accessibility and affordability challenge is to use solar energy to power water processes. This will help ensure that everybody, regardless of their financial status or geographic location, has access to this precious resource that is necessary for the sustenance of life.

Accessing water in remote locations For those living in urban cities around the world, it is easy to take electricity for granted. However, for those living in developing countries across Southeast Asia, as high as 82% of rural communities do not have electricity.

Access to electricity has a direct impact on living standards, as it could determine whether one has the ability to get clean water or not. Today, there are still many remote areas that lack the infrastructure to generate enough power to transport water, which calls for a system that is both efficient and sustainable.

To tackle Asiaâ&#x20AC;&#x2122;s electrification challenge, solar energy can be used to power water pumping stations in these remote locations. With the required energy, the pumping stations can then draw water from various sources to meet the needs of families and communities.

A case in point is the Kahiyangan village on Pulau Tomia in Indonesia, which grappled with water shortage for over 20 years. The water source for the village was a cave three kilometres away that could only be accessed by traversing extreme terrains. With low levels of income, its villagers could not afford traditional water pumping systems that are powered by fossil fuel and require infrastructure support.

To tackle this challenge, an irrigation and sinewave filter system with a renewable solar inverter was installed in the village, powered by 144 solar panels. The off-grid solar inverter harnesses solar energy and converts the DC power output from the solar panel to AC power supply for pump operations. The system pumps water into a water tank, drawing 100,000 litres of water from the cave a day, providing clean water to around 1,000 people across two villages. The inventive use of solar energy also 48 ASIAN POWER

Chee Meng Tan Product Portfolio Director Grundfos Asia Pacific

means that there is no operation cost involved in building electricity infrastructure.

Keeping water affordable The water crisis is not just about water scarcity or extreme water-related weather events. It is also about the affordability of clean water.

Water treatment and distribution comes with a price tag and hence, access to clean water is tied to peopleâ&#x20AC;&#x2122;s ability to pay for it. In a world struggling with widening income inequality, not everybody has the means and ability to pay for this basic resource. This directly contravenes SDG 6 that calls for universal and equitable access to safe and affordable drinking water for all.

It is crucial that we explore solutions that reduce the cost of water infrastructure and operations to bring down water prices. Pumping water using solar power, which is becoming more and more cost-effective, is an ideal solution to this issue.

According to the International Renewable Energy Agency, the cost of solar photovoltaic electricity has fallen by 73% between 2010 and 2017. By 2020, the renewable power generation technologies now in use will be at the lower end of the fossil-fuel cost range, or even cheaper than fossil fuels.

Moreover, solar power also has no maintenance and energy costs as it does not require any outside supply of fuel to run.

A success story is the rural district of Can Duoc in the Mekong River Delta region of Vietnam, which struggled with a lack of access to clean water despite being surrounded by rivers and canals. The water sources were polluted by heavy metals, chemicals and bacteria, and installing a pipeline to treat and deliver clean water to the scattered communities required a comprehensive network and significant investment. Unable to raise enough funds to build a water treatment plant, families in the rural district had been lacking in clean water for 40 years.

With donations from the private sector, a new water treatment plant, partially powered by solar arrays and a solar control panel, was built in the district. The solar technology has been instrumental in saving energy for the pumping station whilst lowering operating costs - up to one-third of the electricity bill - for the investors. More importantly, this innovative solar-powered water treatment solution now serves 3,000 households in Can Duoc, delivering safe water to the communities.

The path ahead In order to address the water accessibility and affordability issues in the region, industry players and the government need to work together and make sure that standalone off-grid initiatives continue to be rolled out.

This will go a long way in helping to provide viable means of access to electricity, and therefore basic resources such as water at affordable rates.

Solar-powered pumps beckon a new era of water solutions and will play a pivotal role in powering reliable water access in the region. But the potential of solar energy in providing water access goes beyond the developing world. Thanks to increased efficiency, cost-effectiveness, and capacity, solar energy can be used for a wide range of industrial and agricultural applications across the globe.

Today, investing in solar energy not only has environmental benefits but also makes business sense with the energy and cost savings it offers.

To optimise its potential, industry players need to innovate and develop technologies that can support larger projects and provide more efficient pumps and solar power systems.

Your reliability shines Energyâ&#x20AC;&#x2030;&â&#x20AC;&#x2030;Storage solutions expertis Securing energy supplies Ensuring a reliable power supply is one of the key factors for progress and prosperity around the world. Building on decades of MAN innovation, we can help secure clean and efficient energy supplies for your customers. Our expertise covers solutions for hybrid power, LNG to power, energy storage, power-to-X, thermal power plants, and CHP. www.man-es.com ASIAN POWER 3