Pima Vol 7 issue 2 by Pimagazine Asia

A S I A’ S

LEADING

POWER

REPORT

VOLUME 5 ISSUE 2

INDONESIA RACING FOR GREEN ENERGY IN THE ARCHIPELAGO

Asia’s New Silk Road Spore Project Smart Water Australia

HEAR FROM Josef Ullmer Andritz Hydro N Venu ABB Power grids Jack Wen – GE Energy Connections Marco Perillo – Himoinsa Far East Plus many more…. Features Inside Include: Asia’s Nuclear Growth, Hydro Power in Indonesia, UHV in China, Singapores Water Market, Nuclear in SEA, More inteviews and great features Inside!!

TH 214-150205

Successfully proven in commercial operation: the H-class from Siemens. Outstanding flexibility meets groundbreaking efficiency.

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proven H-class technology for economic and cleaner power generation. In combined-cycle operation, it performs with an unmatched power output of up to 600 MW at more than 60 percent efficiency as well as significantly reduced emissions per kWh produced. The air-cooled SGT-8000H series achieved more than 100,000 equivalent operating hours and exceeds expectations of plant operators around the world with high operational flexibility as well as proven reliability and availability.

siemens.com/gasturbines

Editors Note even doubling nuclear capabilities, but we take a look at all aspects in this edition.

Welcome to another bumper edition of Pimagazine Asia. No matter what, energy is a basic human requirement to move us forward. From electrifying a small village so children can study under a bulb as opposed to a candle, to the simple thing of flicking on the radio, something many of us simply take for granted. At what cost of energy though? From large hydropower projects that relocate thousands of people, to the building of bigger more efficient power stations. This edition we have a great spectrum of energy solutions, looking at the renewable aspect favored and pushed by many governments around the world, through to the ugly sister of the energy sector Nuclear. In my opinion I am a strong advocate of Nuclear energy. Nowadays anyhow, its relatively clean, new technology ensures efficient generation; they are cost effective and generate electrical power on a massive scale. China are no stranger to knowing what works and forging ahead, reports suggest they are

I hope you enjoy this edition, itâ&#x20AC;&#x2122;s rammed with great interviews, articles and overviews that I am sure will keep your attention. As we go to press, the website is under going some changes, so if your not already subscribed I suggest you log on right away and get yourself registered. Should I need to remind you, our twitter following is growing day by day, we use this platform as soon as new news is published, so again, please follow us @pimagazineasia Any news, breaking stories or promotions you have planned, please contact me directly sean@pimagazine-asia.com Thanks for your continued support and we look forward to hearing from you

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Contents Inside This Issue 42 48 24 12 62 28 56 16 34 06 20 68

FEATURES Asia’s new silk road Asia’s Nuclear growth Australia Smart Water Hydro Power Indonesia UHV in China Singapore Water Market SEA Nuclear developments Spore Project Economies can’t grow in the dark

REGULARS Company News Indonesia Overview Events & Advertising index

INTERVIEWS 64 14 32 26 46 66 36 52 60 38

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Mr N Venu • President & Head Power Grids ABB Asia Mr Josef Ullmer • President Andritz Hydro Indonesia Mr Clive Turton • MD APR Asia Pacific Mr Mikael Krogh • MD Biogill Asia Pacific Ms Csilla Kohalmi Monfils • EVP Asia Engie Mr Jack Wen • GM Grid Solutions Asia GE Energy Connection Mr Marco Perillo • GM Himoinsa Far East Mr Michael Chatlani • VP Sales & marketing L3 Mapps Mr Derek Stuart • Global Product Manager Ametek Land Dr Andreas Emmert • Head of Power Plant Sales Asia

COMPANY NEWS with VPower, delivered 32 natural gas powered gen-sets with a total output of 45 MW to Myanmar Electric Power Enterprise (MEPE). Last year, another 64 gensets were delivered to the site, which is directly connected to the country’s power grid to stabilize domestic power supply. Matthias Vogel, Vice-President Power Generation, Rolls-Royce Power Systems, noted that “China and the Asian region as a whole are key strategic markets where MTU Onsite Energy is very keen to grow by joining forces with a strong partner such as VPower.” ANSALDO ENERGIA IN €600 MILLION OMAN WIN!

ROLLS ROYCE MTU & VPOWER EXPAND IN ASIA As part of its cooperation with China’s VPower, MTU Onsite Energy will provide 96 16V 4000 L32 gas generator sets with a total power output of 144 MW to a power station in Myingyan, Myanmar. That follows the delivery of 32 natural gas gen-sets with a total output of 45 MW in 2014 and 64 more last year. Rolls-Royce and the VPower Group announced they have recently signed a strategic agreement intended to strengthen their partnership in power generation markets across China and the rest of Asia. At the same time, a framework agreement for 2016 was also signed providing for the supply of 160 MTU Onsite Energy 16V 4000 L32 gas generator sets, each rated 1.56 MW. The agreements continue the collaboration between MTU Onsite Energy and VPower. Established in 2001, Hong Kong headquartered VPower operates production and service centers in China serving most of Asia. Since its first project in Indonesia, the company said its large scale interim power project business has installed more than 200 MW of power generation systems to date. Along the way, VPower has established several business partnerships and in 2014, formed a global strategic partnership with Rolls-Royce Power Systems and its MTU subsidiary. This latest framework agreement allows VPower to secure production capacity within MTU Onsite Energy, enabling it to meet the needs of its customers at short notice. “Our past successes in cooperation with

06 | POWER INSIDER VOLUME 5 ISSUE 2

Rolls-Royce on numerous power plant projects have motivated us to develop our partnership,” said Rorce Au-Yeung, co-CEO of the VPower Group. “The high rates of efficiency, outstanding reliability and low service costs of gas gen-sets from

MTU Onsite Energy make them the ideal product for this application.” MTU Onsite Energy has made significant inroads in Asia lately, including the signing of a contract to support the extension of a gas power station in Myingyan, Myanmar. Equipped with 96 MTU Onsite Energy 16V 4000 L32 gas gen-sets with a total power output of 144 MW, the gas power plant is one of the biggest of its type in the world. MTU said. In 2014, MTU Onsite Energy, working

Ansaldo Energia Switzerland has been awarded two contracts worth approximately 600 million Euros in total for the supply of major power plant equipment to two large IPP projects. The Ibri 1510 MW CCPP and Sohar III 1710 MW CCPP in the Sultanate of Oman are expected to be commissioned in early 2019. The Ibri and Sohar III CCPP IPP projects are developed by the sponsor consortium of Mitsui & Co. Ltd., ACWA – International Company for Water and Power Projects

and DIDIC – Dhofar International Development and Investment Holding Company, following a simultaneous award of the two projects to the development consortium by Oman Power and Water Procurement Company SAOC of Oman earlier this month. The two power stations will operate and supply power under a PPA to the grid in the Sultanate of Oman. Ansaldo Energia will supply the main power train equipment components,

including for each power plant, four of Ansaldo Energia’s newly acquired high-efficiency advanced GT26 class gas turbines, four heat recovery steam generators (HRSGs), two steam turbines and six turbo generators to SEPCOIII Electric Power Construction Cooperation of China (SEPCOIII), who will be responsible for engineering, procurement and construction (EPC) on a turnkey basis. Ansaldo Energia will also provide field services to SEPCOIII – under separate contracts – during the construction phase and long term maintenance services to the operator after commissioning. These projects mark Ansaldo Energia’s first success with its recently acquired and formerly Alstom owned GT26 gas turbine technology and will be one of the largest CCPP project awards in the Gulf region. Ansaldo Energia will certainly have a firm place the CCPP and IPP market where highly efficient, operationally flexible and reliable technology is required. With these two projects in execution in the region and Ansaldo Energia’s presence as a service provider in the Middle East area through Ansaldo Thomassen Gulf in Abu Dhabi, Ansaldo Energia’s position in the Gulf will be further strengthened. Juerg Schmidli, Ansaldo Energia Switzerland President, commented: “With its operating flexibility and high efficiency, the GT26 gas turbine will play a critical role in generating maximum project returns for our customer. This is the perfect start for our newly formed Company Ansaldo Energia Switzerland”. Hyflux wins in Egypt! Hyflux has been awarded a letter of intent for a contract to construct the Ain Sokhna Integrated Water and Power Project in Egypt, it announced in a press release. The environmental solutions firm said the desalination plant, commissioned by the by the General Authority for the Suez Canal Economic Zone, is designed to pro-

duce 150,000 cubic metres of water per day. It will feature an on-site 457-megawatt combined cycle gas turbine power plant to generate power and supply electricity to the plant. Excess power will also be dispatched to the grid and go towards supplying the

that is recognised internationally,” she said. The project is expected to have a “material financial impact” on Hyflux for the current financial year, subject to the signing of the relevant contracts, according to the news release.

Egyptian governorates’ needs, it added. Construction of the plant is slated to commence after the finalisation of the contract, which is worth US$500 million. An additional 25-year operation and maintenance contract for the plant will also be awarded to Hyflux, it said. Executive Chairman and Group CEO of Hyflux Olivia Lum said the entry into the Egyptian market presents “exciting opportunities” for the company. “This project is significant to us because it is our first integrated water and power project abroad and demonstrates our ability to put together an innovative solution

As part of his visit to Qatar and Egypt, Deputy Prime Minister Teo Chee Hean witnessed the award of the project to Hyflux on Tuesday with Egypt Minister of Industry, Trade and Small and MediumSized Enterprises Tarek Kabil. During a speech at a reception to mark the 50th anniversary of bilateral relations between Singapore and Egypt on the same day, DPM Teo noted that the two countries have been linked by the sea even before the Republic’s independence. “The Suez Canal is the shortest maritime route between Asia and Europe. The opening of the Suez Canal in 1869 buttressed Singapore’s position as a maritime hub,” he said. The town of Ain Sokhna, where the new water and power plant will be built, is a harbour in the seaport city of Suez near the southern terminus of the Canal. With Egypt now moving into the second phase of the Suez Canal’s development, the economic zones around the canal have the potential to “transform Egypt’s economy and put Egypt on the global map”, said DPM Teo. “Singapore stands ready to partner Egypt in its growth and development, drawing upon areas of developmental experience which we can share where relevant … both sides have agreed to explore cooperation in port development and water resource management.”

MHPS COLLABORATE WITH KEPCO ON GAS TURBINES Mitsubishi Hitachi Power Systems (MHPS) has signed a joint research agreement on new combustion / measurement technology for gas turbines with Korea Electric Power Corporation (KEPCO). The two companies aim to develop new combustion technology that can use low calorific value fuel efficiently, in preparation for the introduction of low calorific value gases. Kim Doo-Young, head of KEPCO’s research center, and Akimasa Muyama, Senior Executive Officer at MHPS, previously signed the joint research agreement at the MHPS Head Office in Yokohama, Kanagawa Prefecture.

Previously MHPS and KEPCO signed a memorandum of understanding (MOU) to carry out initiatives such as annual technical exchange meetings and future joint research in November 2014. Up to now, in addition to holding technical exchange meetings between MHPS, KEPCO and the Korea Advanced Institute of Science and Technology (KAIST), the companies have studied specific joint research projects. The new joint research agreement has been concluded based on this MOU, and aims to blend MHPS’s advanced design technologies with KEPCO’s production technology to realize new concepts in combustion / measurement technology.

08 | POWER INSIDER VOLUME 5 ISSUE 2

Specifically, the two companies will carry out joint field testing using MHPS’s combustion chamber, taking advantage of the gas turbine combustion test facility at KERRI, KEPCO’s electrical power research institute. The study period is three years. KEPCO is Korea’s public utility, with six subsidiaries under its umbrella. In order to carry out R&D on the gas turbines it operates in Korea, KEPCO established a demonstration-scale gas turbine combustion test facility in August 2015. This facility advances combustion adjustment technologies and development of a combustion adjustment simulator. The companies plan to use this facility in their joint research. Korea is one of the most important markets for MHPS. There are currently over 130 gas turbines for power generation in commercial operation in Korea. MHPS has supplied 55 of those units, including its state-of-theart J-Series gas turbine, making it the market leader in the large-scale turbine market. MHPS will continue its good relation-

ship with KEPCO, contributing to stable and efficient power supply and the reduction of environmental impact. PHOENIX SOLAR APPOINT NEW REGIONAL GM IN ASIA Eric Fleckten (43) has been appointed General Manager of Phoenix Solar Pte Ltd, Singapore. In this position, which he assumed in November 2015, he also oversees the Phoenix Solar Group’s activities in the Asia Pacific region. Prior to joining Phoenix Solar, he held the post of Director of Business Development Emerging Markets at SunEdison, and before that led the operations of

the Dry Sorbent Injection (UCC DSI) Joint Venture of United Conveyors. During his career, he also served as F-16 pilot with the Air National Guard of the US Air Force for eight years. Eric holds a BS degree in Civil Engineering from Stanford University and has been a registered Professional Engineer in the USA (California) since 1998. He is a co-inventor of two US patents in the field of air pollution control and currently completing an MBA from the National University of Singapore. He gained extensive experience and widened his skills base through managing international operations, developing projects, structuring deals and executing complex projects geared

to ensuring profitability. Drawing on his technical and operational experience, with the capacity for strong team leadership and the ability to create and nurture partnerships, Eric will be making a significant contribution to strengthening the position of Phoenix Solar in the Asia Pacific Markets, as well as promoting the strong growth envisaged for the Phoenix Solar Group. ANDRITZ IN EGAT ORDER

The Srinagarind project has a total installed capacity of 360 MW of conventional hydropower and 360 MW of pumped-storage generation. The US$114 million project contains an embankment dam and a reservoir completed in 1980. The facility’s three 120-MW Francis turbines and two 180-MW Francis pump-turbines were commissioned incrementally between 1980 and 1991.

The Electricity Generating Authority of Thailand has ordered electromechanical equipment from Andritz Hydro to rehabilitate the 720-MW Srinagarind

VOITH SUPPLIES 4TH LARGEST HYDRO PLANT IN CHINA

hydroelectric facility on the Khwae Yai River in Si Sawat District of Kanchanaburi Province, Thailand. The cost for the work is not immediately available, but according to a March 16 press release from Andritz Hydro, the rehabilitation process is scheduled to begin in 2019. The rehabilitation order includes the supply of three vertical Francis runners, including model test, generators, governors, automation system, main transformer, medium- and low-voltage switchgears, power and control cables, fire protection system, a 230-kV disconnecting switch, the main inlet valve, mechanical auxiliaries, installation supervision and commissioning.

ating Machines to Wudongde Hydropower Station in China Shanghai, China: Construction activities at Wudongde hydropower station, the fourth largest of its kind in China, are now fully under way. Voith is supporting the Wudongde project with the supply of six hydroelectric turbine generator units and auxiliary parts with a total installed capacity of 5,100 megawatts. The contract has a value of around €365 million. Following Three Gorges, Xiluodu and Baihetan the project marks yet another breakthrough for Voith in supporting the development of large renewable energy projects in China. The turbine generator units for Wudongde will, in

Voith Received Orders to Supply Gener-

terms of power output, be amongst the largest worldwide and the largest Voith has supplied in its history. Wudongde is located in the lower reaches of the Jinsha River, the region of Huidong County, Sichuan Province and Luquan County, Yunnan Province. With its 12 units of 850 megawatts Francis power generating machines, Wudongde will have a total installed capacity of 10,200 megawatts, nearly half of that of Three Gorges. The Chinese government approved the construction in December 2015 with the commissioning of the Wudongde project planned to be in 2020. When finished, the Wudongde hydropower plant will have an estimated annual generating capacity of 38.9 billion KWh, and will contribute to savings of 12.2 million tons of standard coal and 30.5 million tons of CO2 emissions each year. With multiple functions of power generation, flood control, navigation and sediment retention, the project will play a significant role in the “West-East Power Transmission”, a program aimed to transmit affordable, clean power from Western China to the economically dynamic Guangdong province and other coastal areas and promote

sustainable economic growth for China. The successful order placement was the result of Voith’s innovative technology and well-established track record of sound performance in China. “Voith is very proud to be a part of this exciting and important hydropower project and continues to contribute to China’s renewable energy development,” said Uwe Wehnhardt, President and CEO of Voith Hydro. Voith has supplied more than 240 power units to 80 Chinese hydropower stations. Voith Hydro Shanghai was established in 1994 as part of Voith Hydro’s firm desire to take deep roots in China as a local company. It has become a major force behind China’s hydropower development program through its participation in key projects including Three Gorges, Xiluodu, Longtan, Xiaowan, Laxiwa, Liyuan, Dagangshan, Nuozhadu, Jinping II and Hongping. With 330 GW of installed hydropower capacity, China is by far the leading player in the world’s market for both new hydro development as well as in total installed capacity. In 2014 alone, the country added 21.85 GW. Hydropower is the largest, oldest and

also most reliable form of renewable energy generation. Worldwide it makes an indispensable contribution to stable power supplies and hence to economic and social development – both in industrial countries and in emerging markets. At the same time, hydropower significantly contributes to climateprotecting energy generation. Voith has been a leading supplier of this technology since the early beginning, and continuously develops it further. INOX IN 100MW ORDER FOR TATA POWER Indian wind turbine maker Inox Wind Ltd (BOM:539083) said Tuesday it will deliver 100 MW of its machines for a project in Gujarat state under a repeat order from Tata Power Renewable Energy Ltd (TPREL). The project at Rojmal is TPREL’s fourth one with Inox Wind. Before it, the wholly-owned unit of Tata Power Co Ltd (BOM:500400) had ordered over 300 MW of wind turbines from the firm. As part of the new turnkey contract, Inox Wind will provide services ranging from development and construction to commissioning of the plant. In addition, it will also provide operations and

10 | POWER INSIDER VOLUME 5 ISSUE 2

maintenance services over the long term. The company will supply and erect 50 pieces of its 2MW DFIG 100 rotor dia wind turbine. The machines will be used for the expansion of a 400-MW wind complex, 140 MW of which are already operational, according to the press release. Tata Power has over 600 MW of commissioned wind and solar power capacity. The value of the current contract was not disclosed. COMPTON & GREAVES IN $35 MLN PLN ORDER Crompton & Greaves on Friday announced that it has bagged a $35 million (Rs.236 crore) order from Indonesia’s government run electricity company PT PLN (Persero). As part of the deal, the Indian electric major will produce and put in place 28 power transformers in the 83.3MVA and 167 MVA range and voltage in the 150kV/500kV range in Indonesia. The delivery will begin from May this year and end in March next. “CG’s power transformers will be installed across PT PLN’s transmission network, spread over multiple

substations and power plants in Java, Sumatra and Kalimantran provinces of Indonesia,” Crompton Greaves said in a statement on Friday. This announced project is a part of PT PLN’s vision to increase the transmission capacity of Indonesian Power Grid, which has of late been struggling to supply sufficient electricity to the Indonesians. With the installation of these power transformers by CG, the Indonesian company is likely to reduce its dependency on heavy equipment imports, thereby giving a fillip to its networking strengthening ambitions. “The CG edge lies in providing indigenously built products and turnkey services that reflect global standards, while suiting local conditions. We look forward to being a part of many more collaborative efforts that involve building robust power transmission network, in Indonesia and the rest of Asia,” said Jean-Michel Aubertin, CEO, CG Power Systems International. CG has for years been able to maintain a global recognition in manufacturing and exporting high-voltage transformers. For over two decades, the Indiabased company has supplied power transformers and voltage levels to PT PLN.

CTC INCREASES LINE CAPACITY Earlier this month CTC Global’s CEO, Mr. J.D. Sitton, was invited to speak at the 2016 T&D conclave “Elecrama” in Bangalore, India. Mr. Sitton explained to the delegates the importance of leveraging modern conductor technology to increase line capacity and reduce line losses. Using a 33 kV example with an existing 105 mm^2 ACSR “Dog” conductor, Mr. Sitton showed how replacing it with high-capacity composite core conductor had the potential to reduce line losses by as much as 37%, while doubling capacity. The line loss reduction in his 100 km example equated to a savings of over 38,000 MWh per year (>$1.9 million dollars). In addition to delivering more power to more people using this straight forward reconductoring technique, Mr. Sitton also demonstrated how line loss reductions also frees up generation capacity that is otherwise wasted supporting line losses. In the coming months, Mr. Sitton and other industry experts will be presenting a white paper to India’s Ministry of Power. We will be sure to provide a link to that report when its becomes available.

HYDRO POWE Indonesia’s government plans to build hydroelectric plants at 239 dams owned by the Public Works Ministry, as part of its renewable energy initiative. “We will rent the dams to developers so they will only be responsible for building the power generators, which would reduce investment costs greatly,” said Ridha Mulyana, the director general for new and renewable energy at the Energy and Mineral Resources Ministry. He added that the Finance Ministry would determine the rental fee. The director general also said that the government has yet to set a feed-in-tariff — the rate set by the government at which state utility Perusahaan Listrik Negara buys electricity from private power producers — under the plan. Ridha said that the government is yet to determine whether such projects will be assigned to state enterprises or given to private investors. This year alone, as part of the project, the government plans to kick-start the construction of four hydropower plants in East Java, said Ridha. The combined capacity of these four new plants is forecast to reach as much as 146.52 megawatts. Private investors have also expressed interest in building similar facilities in five locations, which would have total power capacity at around 16.94

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megawatts, according to Ridha. The current feed-in-tariff for a hydropower plant with a capacity of less than 10 megawatts is between Rp 975 and Rp 1,378 (8 and 12 cents) per kilowatt-hour. As of 2013, hydroelectricity accounted for 8.78 percent of the country’s installed capacity of 46,428 megawatts, according to the Energy Ministry. Indonesia’s energy needs are expected to keep increasing in line with the continued growth of the nation’s economy. A report by the Agency for the Assessment and Application of Technology (BPPT), entitled Outlook Energi Indonesia 2013 (Indonesia’s Energy Outlook for 2013), pointed out that in 2011, Indonesia’s energy needs amounted to just 1.044 billion barrels of oil equivalent. Meanwhile, by 2030, the country’s energy needs will have multiplied by roughly 2.5 the 2011 figure, reaching 2.5 billion barrels of oil equivalent. Indonesia is likely to experience problems meeting this need in terms of its mix of energy sources. Currently, Indonesia is very dependent on fuel-based energy. According to the Indonesian Energy Balance report 2008 — 2012, despite its declining trend, energy consumption deriving from fuels still stood at 51 percent in 2012. In contrast, oil production in Indonesia con-

tinued to decrease. As a result, Indonesia is vulnerable to changes in world oil prices, which finally tend to destabilize the exchange rate because of the country’s sizable annual imports of oil. In fact, Indonesia has alternative sources of energy that could be utilized, one of which is hydropower. According to the Master plan Study for Hydropower Development in Indonesia in 2011, Indonesia has the potential to develop up to 26 gigawatts (GW) of hydropower from hydroelectric power plants. This study also found that out of the maximum potential of 26 GW, the hydropower potential that could possibly be developed amounted to 12.4 GW, or 48 percent of the maximum. This latter figure is based on the assumption that hydroelectric power plants are not located in protected forest areas and that only around 2,500 households are subjected to resettlement as a result of the building of such plants. If we look at the geographical spread, the greatest potential for development lays in Java, with a potential of 4.7 GW, followed by Sumatra with 4.0 GW, Sulawesi with 3.1 GW and Kalimantan,

ER INDONESIA RUPTL, additional capacity derived from mini/micro hydro will have reached 0.8 GW.

Maluku, East Nusa Tenggara and West Papua with 0.6 GW. The opportunities for the development of hydropower itself are substantial. These opportunities derive from the increased consumption of electrical power and the government’s efforts to encourage the use of renewable energy, especially hydropower. The need for Indonesia to diversify its energy sources from just using fossil energy, especially oil, is another key factor. The consumption of electricity in Indonesia is expected to continue to rise. In line with Indonesia’s economic growth, electricity consumption in Indonesia will grow at an average of 8.4 percent per year to a total of 386.6 TWh by 2022. Meanwhile, on the supply side, the government is also supporting the development of hydropower. The evidence of the National Energy Policy is that by 2025, new and renewable energy will enjoy a significant increase in their contribution to the Indonesian energy mix, from a meager 5.7 percent in 2011 to 17 percent by the year in question. The 2013 — 2022 RUPTL states that by 2022, an additional 3.7 GW will be generated by hydropower-based plants, meaning that the total capacity of hydropower plants in that year will have reached 7.7 GW. Furthermore, the government is also supporting the operation of small-scale hydropower plants with capacities of less than 10 MW (mini/micro hydro). In the 2013 — 2022

Combined, all hydropower-based plants will thus make a contribution of 8.5 GW, or 7.9 percent of the total generating capacity of state-owned electricity company PLN and independent power producers (IPP) throughout Indonesia. The government is also offering incentives to increase the role of hydropower. For hydropower plants above 10 MW, the same rules apply to those related to renewable energy plants. However, for the development of mini/micro hydro, the government has established an additional regulation in the form of a feed-in tariff for IPP to develop these types of plants, as stipulated in the Ministerial Decree of the of Energy and Mineral Resources Ministry (ESDM) No. 4 of 2012. This feed-in tariff will be determined based on voltage type, as well as the geographical location where the mini/micro hydropower plant is to be built. Several other regulations related to the construction of hydropower plants have been formulated. These include the following: Finance Ministry Regulation (Permenkeu) No. 21/ PMK.011/2010 concerning the offer of tax and customs incentives for activities related to the utilization of renewable energy sources. This consists of income tax, VAT and import duty relief provisions; it also includes Finance Ministry Regulation (Permenkeu) No. 139/

PMK.011/2011, which regulates government guarantees as to the ability of PT PLN to meet its financial assurances with respect to the risk of default on power purchase agreements made with IPP. It is worth noting that the development of hydropower plants in Indonesia is not without obstacles. Among these is the fact that there are only a very few contractors qualified to develop hydropower plants. Added to this is the classic issue of overcomplicated licensing procedures that afflicts the construction of power plants in general, leading to delays in the completion of projects. It is essential that experienced investors be invited to assist with the construction of hydropower plants, and that standards be created for all areas related to licensing based on river-flow master plans, so as not to disrupt the utilization of rivers by communities that depend on them. Despite the obstacles, the main thing is that it should be faced and resolved, rather than just seeking a poorer alternative or sweeping it under the rug to be dealt with at a later date. With the shift in fuel-subsidy funds, the construction of hydropowerbased plants can now be prioritized. With Indonesia’s substantial resources in this area, this is one source of renewable energy that can enhance the country’s energy security. Indonesia needs to reduce its dependence on fossil fuels, the price of which is very dependent on movements in world markets. Not to mention that they are also rapidly depleting. Thus, it makes sense to switch to renewable energy such as hydropower.

Welcome to PiMagazine Asia, can you tell us a bit about yourself and company in Asia? Thanks for the opportunity to introduce ANDRITZ HYDRO in Asia. We are present in Asia from Pakistan till China with our own companies and representative. Out of this I am heading India, ASEAN and ANZ. Personally I am 35 years active in the energy field in various countries and roles, with the last 29 years permanently in Asia.

Josef M. ULLMER President Director – PT ANDRITZ HYDRO, Indonesia & Managing Director and CEO – ANDRITZ HYDRO Pvt. Ltd., India As the Regional Executive for India, South East Asia, Australia, New Zealand, Oceania and CEO of our Indian manufacturing facilities for Hydro Turbines and Generators and the Indonesian EPC JV do I lead with my management teams the growth in this region of the world for Andritz Hydro, part of the Austrian listed ANDRITZ AG. In this capacity I have direct responsibility with approximate 1.600 employees in the region. On an global basis have I been involved in various M&A scouting and restructuring activities which have secured higher growth and profitability, currently more than 30% of our business volume are generated out of Asia and ANZ. However Asia was not always booming, during the Asian Crisis 1997-2002 I was as the Regional Chairman of VATECH Asia (India, China, SEA, ANZ) tasked with my team to streamline and consolidate our structure in the region from 68 to 22 subsidiaries. Based on Regional Focus for core components with national presence in marketing and sales and project implementation we where able to complete this task within 16month by simultaneously increasing Order intake and Profitability. I have started my career in ELIN UNION AG responsible for the sales and implementation of Thermal Power Plants, Gas Combined Cycle Power Plants, EHV Transformers and GIS and Conventional Switchyards up to 500kV level as well as HydroPower Plants.

What do you feel are the current challenges in hydropower in Indonesia? Indonesia has an enormous potential of more than 75.000 MW of feasible potential however a little bit less of 5% is actually developed. Even so we have one of the highest FIT for hydro our investment are low that’s correct and might be based on the following: Current 10MW limit low to ASEAN neighbouring countries where you could built from 10-100MW. Coordination between respective approving agencies is very cumbersome in regard to time and efforts to be spend. The local skill base for engineering and construction work is very small. And many more which have been realized and where GOI and PLN working on. In light of this, where do you think Indonesia and Asia is heading in particular? This a look in the crystal ball Indonesia has a strong vision to utilize sustainable renewable resources namely hydro, geothermal, solar, wind, biomass and even ocean energy. As all Government Agency’s as well as the public have seen the advantages of using renewable energy resources to the max. this however can’t be done overnight but I am very confident that we will see a strong development in renewables in Indonesia as well as some other Asian Countries like Vietnam, Laos, Malaysia, Nepal and Buthan and with some time delay also India which has huge untapped hydro reserves. What projects are you most proud of in Asia? Having equipped so many famous plants with our turbine and generators all over Asia in the last 100years lets pick our part of Three Gorges in China or the 1000MW Cirata in Indonesia or the King Bhumibol dam in Thailand or the Xekaman cascade in Laos or the 1200MW Xayaburi project currently under construction. Also not to forget the largest tidal lagoon in South Korea Shiwa. However beside our success in the Large Hydro Sector, ANDRITZ HYDRO is also the leading supplier on service and rehabilitation as well as for compact and mini hydro solutions. Hence giving our clients our service over the lifetime of a project. I am proud to say that we had successful projects which all mayor utilities as well a

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private investors in our region many of them repetitive long-term clients. Tell us about some of the challenges faced and how you overcame them? Basically we have seen a very long non activity for new hydro power plants to be built by PLN in Indonesia after the 1997 crisis. So we switched our focus to the private sector and had the opportunity to assist VALE in the rehabilitation and extension of their hydro power plant complex Larona, Balambano and Karebbe. This a activities allowed us not only to keep our staff but even to grow knowledge, competence and capacity further, so that we have also been able to continue on our previous success with PLN PLANTS as we were able to beat our for substantial lots at Peusangan 1&2 as well as in Asahan 3. Currently we are struggling together with our developer clients for the final agreement between ESDM and PLN to move Mini Hydro Development forward under FIT regulations. How do you feel local government can help the situation in Indonesia What makes PT ANDRITZ HYDRO competitive in the region? 1. our extensive long term presence 2. extensive own fleet and client relation 3. good multi location mix between Europe and Asian expertise 4. competitive world class manufacturing facilities for turbines and generators in India and China 5. strong construction and commissioning expertise used globally from Indonesia. 1 in 3 Indonesians have no access to electricity. Micro hydro power is playing a key role in bringing electricity to off grid communities. What role can ANDRITZ HYDRO play in helping to provide safe and sustainable hydro power? Things on rural electrification are improving on a very systematically way, however considering 17000 islands with more than 5000 populated, one can imagine the complexity and effort to reach a 100% electrification ratio. With our Mini Compact Hydro range with unit sizes from 25KW to 2 MW we are very competitively placed to support the rural electrification drive, Indonesia is a very important market for you, what are your plans moving forward for 2016? Indonesia will remain an important market for ANDRITZ HYDRO also for 2016 and the years to come. As lowest compliant bidder ANDRITZ HYDRO is also hopeful to receive the award to the first pump storage plant in Indonesia , namely the 1000MW Upper Cisokan Pump Storage Hydro Power Plant, currently under evaluation by PLN Editor signs off with summary….

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The REIDS initiative by ENGIE (Renewable Energy Integration Demonstrator in Singapore) aims at developing sustainable energy solutions for off-grid islands market in South East Asia region. ENGIE will participate to this micro-grid demonstrator with its specific project named SPORE, focusing on the development of tomorrow’s technological bricks to address the energy needs of off grid territories in Asia Pacific.

Index Terms--Energy Management System, micro-grids, multifluid, offgrids, renewable generation, smart grids, south east Asia I. Introduction “Sustainable Energy for All to Meet Fundamental Electricity Needs” was defined as a priority goal by the United Nations. The issue of bringing energy in a sustainable and economic way to off grid territories is important in most Asian countries, and encompasses various contexts such as energy poor people - 4.4 millions of households don’t have access to electricity in Philippine, or remote

industrial sites. II. ENGIE DRT will develop tomorrow’s bricks and add-ons Classical solutions (bringing fuel oil by boat, or undersea high voltage cable) are expensive and neither sustainable nor resilient. This is why ENGIE continuously researches and develops advanced solutions to address the energy needs in any cases including off-grids region, and APAC is a high priority for us. REIDS(Renewable Energy Integration Demonstrator – Singapore), launched by EDB (Economic Development Board), NEA (National Environment Agency) and NTU (Nanyang Technological University)

is an ambitious international program in which ENGIE decided to participate , through the Research and Technologies Division (DRT), to build a tech pilot to address the energy needs of off grid areas in Asia Pacific, using local resources in the most efficient way. It is called SPORE, for Sustainable Powering of Off Grid Regions. Solutions already exist. (ex: PV and batteries, coupled with diesel engines) but remains at a limited scale : sharing production at a larger scale in this region will also help to mutualize needs and reduce overall cost of the energy supply at the community level and become more

The SPOR

Sustainable Powerin

Etienne Drouet, Director of the ENGIE Lab Singapore, ENGIE, M 16 | POWER INSIDER VOLUME 5 ISSUE 2

independent from external supply (fuel). III. SPORE focuses on the development and testing of tomorrow’s bricks and add-ons Exploring the field of integrated solution for 1MW power need, we want to design a more sustainable solution with less fuel. Our solution will be based on the integration of distributed energy sources and new energy value chains, such as Hydrogen or Biogas A Multi Energies µgrid The concept of the SPORE solution is based on Hybrid Micro Grids with a synergy between hydrogen production and an autonomous zero emission µgrid. Hybrid micro-grid technologies will

allow for flexible “plug and play” interconnectivity between the various sources, storage components and enduses such as required, for example, to provide for the electrification of islands and remote villages as well as to rapidly deploy energy supply and distribution systems during emergency situations. SPORE will also enable the integration of energy solutions for every off grid areas in the best fitted way. ENGIE aims at providing greener energies by optimizing the use of local resources , as well as addressing various finals needs such as drinkable water or mobility. Furthermore the solution will be designed to target green fields or brown fields, as many off grid areas already have an existing infrastructure. The main technical challenge will be to constantly determine the best exploitation scenario considering several technologies: renewable generation (PV, Wind Energy, Marine Energy), diesel or biogas genset, fuel cell, electrical storage (lithiumion), Hydrogen storage, cold storage, desalination plants will have to cohabitate in a optimized manner. The real time management will be at stake as the stability of the grid with no or few rotating machines will be a major challenge. IV. The µEMS : an innovation for our business Our project’s innovation is the micro grid energy management system (µEMS), a system composed of 2 main module and responsible for the exploitation of the µgrid. ENGIE will lead the development of the µEMS – Optimization multifluid module, which will embed all predictive and optimization algorithms for every fluid. This module looks at Mid-term and Short Term management (fuel logistics, maintenance

planning, storage optimization, pooling of energy needs, year-ahead till day ahead) and intraday management (from D-1 to 15 min before delivery). Our partner Schneider Electric will lead the development of µEMS – Power Control module aiming at managing the electrical grid stability and all power flows (active, reactive, reserve …) within the remaining 15 mn (ex: instantaneous management of Power voltage and frequency) based on the optimization guidelines provided by the µEMS – Optimization multifluid module. The work will be done in close collaboration of the engineering teams of both companies. Both companies see value in this collaboration, and have a common will to use SPORE to develop a common commercial solution to address the market of off grid areas in South East Asia. Finally SPORE is also the opportunity for ENGIE Lab Singapore to develop strong bilateral relationships with regional actors in APAC on Energy technologies

V. What challenges will overcome the µEMS The solution will be among other design to operate the microgrids based on

RE Project

ng of Off Grid REgion

Maryse Anbar, Smart Grid Project Manager, CRIGEN, ENGIE FOLLOW US ON TWITTER: @PIMAGAZINEASIA WWW.PIMAGAZINE-ASIA.COM | 17

community will. A sociological study will be performed in a first stage to be the closer as possible of the ASEAN community concerns in terms of price to be paid for energy and expected services. The solution will be designed and tested over three main kind of energy technical challenges : - Supporting renewable penetration over a 30% share in a very genset oriented production mix, - Restoring power grid stability in the context of high but not controlled penetration of renewable; - Designing from scratch a system with a full renewable energy supply The µEMS – Optimization multifluid module will so support technico-economic study for the design of the microgrids : it will help to make the trade-off between economic, environmental and social will regarding quality of supply. By covering a large scope of power production opportunities and needs, it will improve the overall efficiency of the system capturing pooling effect over energy production unavailability (intermittency of solar and wind) and needs. In the day to day operation, the µEMS will use the most up-to-date Smart and Digital techniques to efficiently gather and analyze data (weather forecast, assets

state, customers specific needs, …) in order to improve overall efficiency of the system and reduce the energy bill of the community. Main challenge for the engineers teams will be to integrate all of these Energy and Digital components to fulfill their

customers’ needs in the most efficient manner. In other words, SPORE is the also opportunity to design innovative midscale smart energy system for off-grids region, and deliver to isolated community an efficient energy supply solution.

I. Biographies Etienne joined ENGIE in 2007 as a research engineer working on Smart Metering and workforces management. Since 2009, Etienne has become a project manager. From 2009 to 2011 he coordinated the research activities on workforces management, working in business thematic such as gas distribution and transport, water distribution and gas exploration and production. From 2012 to 2014, Etienne worked as a project manager for ENGIE Smart Energy and Environnement solutions, with a strong focus on Smart City. He managed a team of 15 persons dedicated to smart activities : achievements includes the design and evaluation of Big Data’s solution, development of a cyber security expertise, conception of digital services, hardware and software Benchmark, telecommunication expertise, web development,…Etienne also managed Sociological studies on the Energy stakes and goals such as the acceptability of smart solutions in social housing. Since 2014, Etienne is responsible for developing ENGIE’s R&D activity in South East Asia, being the local director of ENGIE Lab Singapore , the Asia Pacific Centre of Excellence for Low Carbon and Distributed Energies Resources.

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Maryse Anbar joined ENGIE in 2008 as gas optimizer in the Gaz de France Supply Division capturing value on European wholesale market over the management of a portfolio of 500 TWhs/y. From 2011 to 2013, she joined Electrabel to support gas and power management process convergence within the creation of the Energy Management and Trading division. She worked both on the hedging and valuation of power assets and on the integration of gas and power optimization process. In few months, she successfully increased the P&L of the Electrabel Benelux portfolio of +1Mio/y. compared to historic management strategy and contribute to the gas-topower long term contracts re-negotiation. In 2014, she joined the ENGIE Lab Paris – CRIGEN as Smart project manager focusing over smart grids and micro-grids demonstration projects. She managed in particular the R&D contribution of ENGIE to the Greenlys demonstration project, going through sociological and economic assessment of smart energy devices to technical remote control of small scale energy production. She is also involved in the European Mastering project that aims to apply distributed artificial intelligence at district and DSO power management level.

ergy pron e g n ti n e ri o re is Indonesia marily export ri p g in rv se m o fr duction growing domess it g n ti e e m to ts marke nergy ine â&#x20AC;&#x2122;s a si e n o d In . n o tic consumpti llenges in recent a h c d e c fa s a h ry dust ertainty and c n u ry to la u g re years from ment. inadequate invest

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ndonesia, with a population of 253 million people in 2014, is the most populous country in Southeast Asia and the fourth most populous country in the world, behind China, India, and the United States.1 Formerly a net oil exporter in the Organization of the Petroleum Exporting Countries (OPEC) for several decades, Indonesia now struggles to attract sufficient investment to meet growing domestic energy consumption because of inadequate infrastructure and a complex regulatory environment. Indonesia encompasses more than 17,000 islands, presenting geographical challenges in matching energy supply in the eastern provinces with demand centers in Java and Sumatra. Also, urbanization and demand in other areas of the country are rising at a faster pace than energy infrastructure development. After suspending its OPEC membership seven years ago, Indonesia is scheduled to rejoin the cartel by 2016 as the country attempts to secure more crude oil supplies for its swiftly rising demand and greater investment from Middle Eastern members in its downstream infrastructure projects. Despite Indonesia’s energy struggles, it was the world’s largest exporter of coal by weight and the fifth-largest exporter of liquid natural gas (LNG) in 2014. As Indonesia seeks to meet its energy export obligations and earn revenues through international market sales, the country is also trying to meet energy demand at home. Indonesia’s total primary energy consumption grew by 43% between 2003 and 2013, according to the Indonesian government. The country’s petroleum share, although decreasing, continues to account for the highest portion of Indonesia’s energy mix at 38% in 2013. In the past decade, coal consumption more than doubled, surpassing natural gas consumption and becoming the second most consumed fossil fuel as Indonesia turned to less expensive sources of indigenous fuels.2 Indonesia intends to reduce its reliance on petroleum in its energy consumption portfolio to a 25% maximum share while

raising the coal and natural gas portions to at least 30% and 22%, respectively, by 2025. Indonesia is also a significant consumer of traditional biomass and waste in its residential sector, particularly in the more remote areas that lack connection to the country’s energy transmission networks. In 2013, biomass and waste (which includes firewood and charcoal) consisted of nearly 18% of total primary energy consumption, although its share has declined over the past several years.4 As Indonesia industrializes and expands its electricity and transportation sectors, the country is using more fossil fuels, particularly coal and oil products. Indonesia also plans to leverage the country’s vast renewable sources of hydroelectricity, geothermal, solar, and biomass and waste, to generate electricity for domestic consumption. Indonesia’s total energy demand is closely linked to the country’s economic expansion. According to World Bank data, Indonesia sustained relatively strong economic performance throughout the global recession, with an average gross domestic product (GDP) growth rate of more than 6% per year between 2007 and 2012, with the exception of 2009 when GDP growth dropped to 4.6%. However, GDP growth started declining after 2012 and fell to 5% in 2014 as a result of weaker demand from trade partners, lower exports, lower commodity prices, and a tighter monetary policy following the government’s decision to raise interest rates substantially between mid-2013 and late 2014. Indonesia’s energy sector continues to influence the economy to a large degree, although the decline in oil and natural gas production during the past few years has lowered its impact. Oil and natural gas alone constituted 15% of merchandise exports in 2014, a decline from 23% in 2000. In addition, revenues from the oil and gas sector, which historically accounted for about 20% of total state revenues, fell below 20% after 2008 and were less than 12% in 2014, despite high oil prices during most of the year.

is developed. The significant drop in global crude oil prices, which started in June 2014, is expected to reduce Indonesia’s oil and gas revenues by at least one-third in 2015.8 A combination of healthy growth, some market reforms, higher hydrocarbon prices, and a stable government encouraged rapid investment, particularly in the commodity sector until around 2010. Factors that have greatly hindered foreign investment in the past few years include more technically challenging oil and natural gas plays, rising domestic energy demand and accompanying limitations on exports, higher taxes on exploration and production, and lengthier processes to procure and renew contracts. Despite the government’s emphasis on more private sector involvement in infrastructure expansion, many infrastructure projects continue to be delayed, because regulatory challenges and uncertainties have reduced predictability for foreign investors. Indonesia’s recently elected government under President Joko Widodo is attempting several energy sector reforms to address the country’s regulatory burdens and lack of legal transparency and to attract much-needed foreign investment for its more capital-intensive and technically challenging energy projects. President Widodo’s new reforms attempt to address corruption and informal markets, streamline the regulatory process for investors, make domestic prices more competitive with international markets, and reduce upstream oil and natural gas costs for investors. However, Indonesia’s energy security policy of retaining more of its hydrocarbon production for domestic use and maintaining local content requirements will continue to hamper investment from international companies.

Electricity Generation capacity growth in Indonesia has been lower than growth in electricity demand, leading to power shortages and a low electrification ratio. Indonesia is the world’s third-largest geothermal generator, although only 5% of the 29 GW of geothermal potential

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Although Indonesia’s electricity generating capacity doubled in the past decade, the country has a low electrification ratio compared to countries with similar income levels. In 2014, about 84% of Indonesia’s population had access to electricity compared to less than 68% in 2010, according to state-owned electric utility Perusahaan Listrik Negara (PLN). Indonesia’s 2014 National Energy Policy aims to nearly complete the electrification of the country by 2020. Eastern Indonesia lags behind the western area of the country, with some provinces such as Papua only providing electricity to 43% of its population. Because capacity growth has not kept pace with electricity demand growth, grid-connected areas have also suffered from power shortages. Inadequate supporting infrastructure, difficulty obtaining land-use permits, subsidized tariffs, and an uncertain regulatory environment all contribute to insufficient generation.

Sector organization PLN is the most significant company in Indonesia’s electric power sector. It owned and operated about 70% of the country’s generating capacity through its subsidiaries as of 2014 and maintains an effective monopoly over distribution activities. Although the most recent 2009 Electricity Law ends PLN’s distribution monopoly, regulations are not in place to enforce this law. The government regulates consumer electricity prices below market levels, forcing PLN to accept losses. To ameliorate the effect of this policy on the state’s vertically integrated utility, Indonesia raised prices in 2013 by 15%. This move was also intended to reduce government subsidies to PLN. In lieu of subsidies, the government has sought to raise tariffs in the power sector to provide price security to PLN and to private investors. Also, feed-in tariffs exist for geothermal, solar, and waste-toenergy power. The government is seeking to stimulate foreign investment in the power sector by mandating PLN to

offer guaranteed power purchase agreements (PPAs) for independent power producers (IPPs) as part of its supply portfolio. The government projects that IPPs will construct nearly 60% of the power capacity in the latest government program to add 35,000 megawatts (MW) of power by 2019.

Generation Indonesia had an estimated 51 gigawatts (GW) of installed capacity and generated 229 billion kilowatthours (kWh) in 2013, according to Indonesia’s Ministry of Energy and Mineral Resources and PLN data (Figure 11). In 2013, about 88% of the power generation came from fossil fuel sources, with the rest coming from hydroelectric (8%) and geothermal (5%). Coal accounted for slightly more than half of the power generated from fossil fuels. Oil-fired generation has declined along with Indonesia’s oil production. In its latest energy policy established 2014, the Indonesian government set a national goal that 100% of households will have electricity by 2020. To address the capacity shortage and alleviate bottlenecks in more developed areas in Java, the policymakers embarked on a fast-track plan in 2006, designed to accelerate power plant development. Phase one of this plan includes 10 GW of new coal-based generation. After delays of this project from its original completion date of 2010, the country has added 8.1 GW of coal-fired capacity in this phase and plans to complete the first-phase additions by 2015, according to PLN. The second phase of nearly 18 GW of capacity additions include cleaner energy sources such as natural gas, geothermal, hydroelectricity, and other renewables, although coal-fired generation capacity still makes up more than 60% of this phase. According to PLN, this additional capacity is planned to come online by 2022, although the second phase has also encountered project delays. In mid-2015, President Jokowi Widodo announced an ambitious electric capacity target to install 35 GW through 2019, about 20 GW from coal-fired capacity, 13 GW from natural gas-fired plants, and

and North Sulawesi and make up less than 3% of total installed generation capacity. To promote geothermal development, the country’s fast-track electrification plan calls for an additional 5 GW of geothermal capacity by 2022, to be operated primarily by IPPs and private companies. The new government’s 35 GW Electricity Program, launched in mid2015, includes 1.2 GW of additional geothermal capacity by 2019. The government signed a cooperation agreement with New Zealand in 2012 for joint development of geothermal energy projects. PT Medco Power Indonesia plans to commission the 330-MW Sarulla power plant, which will be the world’s largest geothermal plant by 2018.

benefits for the local populations.

3.7 GW from renewable sources (primarily hydroelectricity and geothermal resources). Indonesia’s primary power consumers are residential (42% market share), industrial (33%), and commercial (18%).

Geothermal and other renewables Plans to increase the use of total renewable energy (including hydropower) to 19% of the total energy portfolio by 2019 and to a minimum of 23% by 2025 depend heavily on developing the country’s geothermal and hydropower resources. The Ministry of Energy and Mineral Resources has estimated that Indonesia has a potential 29 GW of geothermal capacity, only 5% of which has currently been developed. One impediment to development has been the definition of geothermal development as a mining activity, which restricted new projects in conservation areas. Indonesia passed a new Geothermal Law in 2014 that eliminated this regulation for geothermal development. The law also attempts to raise investment in geothermal projects by making the price more closely match developments costs. Also, the law limits the permitting process to review only by the central government and alleviates land acquisition issues by providing

Indonesia’s power sector is notable for significant levels of geothermal power. Indonesia is the thirdlargest geothermal energy generator in the world, behind the United States and the Philippines. Indonesia added about 540 megawatts (MW) of geothermal capacity in the decade leading up to 2013, bringing its installed electric capacity to more than 1.3 GW. Indonesia’s current geothermal plants are scattered around Java, North Sumatra,

Hydropower consisted of about 10% of the total generation capacity in 2013, and there has been little growth from this energy source in the past decade. Indonesia plans to develop several mini-hydropower plants, adding about 2 GW of capacity by 2019. Indonesia has a small but growing electricity capacity of other renewables such as solar, wind, and biomass energy. The government strongly supports investment in these plants, particularly in more remote areas, to further increase the country’s electrification rate.

Just about, but QUITE THERE Y The question regarding the adoption of Smart Water Systems (SWS) in Australia, has moved from “Will we ever?” to “When will we?”. While many market participants believe that the tipping point for mass adoption is already at hand, the consensus remains that for mass adoption of SWS to progress in the Australian market, a large water utility will need to be a pioneer amongst its peers in adopting this technology. Fortunately, there are several factors that are driving the case for a large utility to take this leap of faith. For instance, just as Australian telecom providers became more customer centric in the late 1990’s, so too are Australian utilities becoming more engaged with their customers. Energy utility companies are already leveraging the roll out of smart electricity meters to

engage with their customers more closely. Similarly, water utilities are expected to follow the same path and adopt SWS’s to better engage with customers. Another interesting trend that is expected to catalyse the adoption of SWS’s in future is in the new breed of management talent filtering to the top of Australian water utilities. This is a critical trend because unlike typically water meter investment, which is driven from the bottom up (i.e. asset manager), investment in SWS will need to be driven from the top down. New tech-savvy management talent is recognising the potential of SWS’s to not only improve their operational efficiencies, but also to create adjacencies to their current business models. For instance, the smart network can be used to address other issues including tracking and recovering stolen meters/tools, enhancing farm security (stock monitoring),

alerts on activation of animal traps and wetlands monitoring. The primary driver for SWS adoption among utilities is the potential of the system to help make capital expenditure on asset upgrades and rollouts more efficient. Water utilities are heavily assetbased companies and any investments to increase capacity or replace existing assets can be astronomical. Leveraging some of the potential benefits of SWS’s, utilities may be able to defer or completely avoid some of this expenditure. This can be achieved primarily through end-user behaviour modification, as well as more efficient utilisation of current assets. Advanced modelling software can leverage the data gathered from smart meters to estimate the remaining life of assets, which allows utilities to prioritize maintenance activities and understand the potential risk and impact of asset failure. Through collection of real time flow and pressure data, it can also facilitate easier pressure adjustment, inform pipe

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not YET

replacement and optimise energy management. By leveraging its database of asset conditions and updated risk profiles, utilities can use predictive analytics to identify the most critical locations. This would be a far more cost effective method than the current practice of systematically replacing pipes and other assets. Another way to defer capital expenditure through SWS’s, is through behaviour modification initiatives aimed at end-users. For example, Goldenfields Water was planning capacity increase due to a one month peak demand issue. By installing smart meters, and leveraging the gathered data to allow customers to make informed decisions, network peak was reduced by 20%. As such, the investment to increase capacity has been pushed back by at least 8 years. AMI vs AMR At present, the need for sophisticated two-way communication enabled Advance Metering Infrastructure (AMI) is limited, and thus Automated Meter Reading (AMR) systems have dominated trial rollouts in Australia. While in general, a SWS by definition must be based on an AMI system, Australian water utilities however have not established a clear need for AMI technology and so AMR communications is dominant in trials rolled out so far. Furthermore, water utilities in Australia do not (or rarely) disconnect or regulate services, as water is considered a basic right, and as such the ability to send information to the meter has limited perceived benefits. In essence, the majority of utility interest in adopting a SWS, is not as advanced as the benefits an AMI system has to offer. Receiving one-way information for accurate billing, leakage and NRW detection and GIS and SCADA is viewed as solving the bulk of water utility needs. As such, most water utilities may feel the financial cost to roll out and operate an AMI grid do not justify the benefits of twoway communications. Furthermore, it is felt that remote upgrades rather

than replacements will be infrequent, centralised alarms will be sufficient. As such the business case for widespread AMI deployment is low at present. However, water utilities are beginning to mandate the adoption of AMI systems, particularly in multi-dwelling developments. City West Water in Victoria has mandated that any residential development that exceeds 4 levels are required to have an AMI system installed with the costs being met by the developer. Another consideration in favour of AMR systems is with regards to battery life. Smart water metering differs from smart energy metering in that smart water meters are rarely in convenient reach of mains power supply. As a result, smart water meters are dependent on a reliable and long-lasting battery to power data transmission. Ensuring a 15-year battery life, which matches the lifespan of most meters, is essential for investments. Because of the proximity to water and possible submersion of meters, batteries are sealed water-tight and are not meant to be replaced. Operating an AMR deployment with scheduled data transmissions does not impinge on this 15-year battery life. Deploying an AMI system, however, where meters must be constantly ready to receive incoming transmissions can drain battery life significantly, down to eight years or less. This has a large impact on the business case for investment. The market is seeing solutions to this challenge where meters will power up to potentially receive transmissions on scheduled intervals (one minute, five minutes etc.) rather than a constant state of readiness. This ensures maximised battery life and offers the benefits of a two-way AMR-like communications system. While the selection of a system will need to addressed on a case by case basis, but large Australian water utilities, widely known to be risk-averse, will likely find the most “future-proofed” investment in AMI deployments. AMI offers the most advanced capabilities and as this technology evolves and as utilities grow more sophisticated in their data analysis and operations, AMR deployments may prove limiting. What is holding us back? Although the predisposition towards smart water adoption among utilities is growing, largely on better understanding of the demonstrable benefits

of smart water meters, Australia still lags behind other developed economies in truly appreciating the benefits from smart water rollouts. For instance in the United States, the understanding of the benefit of big data analytics is advanced to such an extent that it helps drive smart water meter adoption amongst its utilities. While Australian large utilities are potentially the ones to gain the most from an SWS rollout, they also face the greatest inertia to do so. Large utilities jurisdiction inherently covers a large area which includes a massive asset base that presents competing investment priorities to smart water system rollouts. As such, when they consider investment into SWS, the cost benefit analysis needs to compete with a number of other investment options, which are likely to have more tangible benefits in the short term. Hence, at present, real progress in the market is being made by the mid to low tier utilities. Pilot trials will continue to play an important role in validating smart water meter benefits to utilities and will remain a precursor to mass rollouts. It is expected that small and mid-tier utilities will continue to pioneer the roll out of smart water meters and establish proof of benefits that larger utilities may learn from. This article was authored by Dev Anand Dorasamy, Consultant, Australia & New Zealand, based on Frost & Sullivan’s report ‘Australian Smart Water Systems Market’ which outlines more detailed insights of the Australian SWS market. For media queries or more information please contact djeremiah@frost.com. About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today’s market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies? Contact us: Start the discussion

Mikael Krogh Managing Director at io i Asia

Mikael Krogh is Managing Director at BioGill Asia, a biotechnology company that manufactures unique above ground, attached growth bioreactors and biofilters used worldwide in water treatment systems. As an experienced investor and venture capitalist throughout Europe, Asia Pacific and the USA, Mikael is also the Founder of a Singapore based investment firm specialising in accelerating the growth of clean technology companies. Armed with a deep technical understanding and an extensive background in finance, he is committed to address environmental and development challenges through business and cleantech. Mikael Krogh holds a Master of Business Economics from the Norwegian Business School, is originally from Norway and now calls Singapore home.

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Welcome to PiMagazine Asia, can you tell us a bit about yourself and company in Asia? I am from Norway, moved to Singapore 5.5 years ago, and started at BioGill little under a year ago. Founded in 2009 in Sydney, Australia, BioGill is a biotechnology company, which has developed and commercialised unique above ground, attached growth bioreactors to deliver highly effective, low cost, and energy efficient water treatment. In 2015, BioGill Asia was founded in Singapore to expand operations and address market needs in the region. Our breakthrough technology is now operating in seventeen countries across three continents, effectively treating aquaculture ponds and a variety of wastewaters from food & beverage processing, sewage, commercial kitchens, grease traps and grey water. What do you feel are the current challenges in water treatment in Asia? Lack of infrastructure, the price, and the complicated installation and operation of water treatment technologies are probably the main challenges in Asia followed by regulations that are not properly enforced. However, over the last decade major improvements have been done, especially in creating awareness around water scarcity, water pollution and the necessity to treat water before discharge. The challenge remains to provide water treatment solutions that are affordable, efficient, and environmentallyfriendly. In light of this, where do you think Asia is heading in particular? Asia has the potential to build a strong water sector. With Singapore as Asiaâ&#x20AC;&#x2122;s Water Hub more and more companies are attracted to the region to explore business opportunities. Business will drive the way to a more sustainable water industry, as

will the decisions of key governments. China, for instance, committed itself to take measures against pollution and started a major environmental campaign to support its goals in their new five year plan (20152019). These are signs that we are heading in the right direction. What projects are you most proud of in Asia? Meat processing plant, Taiwan At a meat processing plant in Taiwan, handled by our Taiwanese distributor Crossbond Corp, we treat a very difficult wastewater containing blood. Conventional treatment technologies have failed to treat it, but after the installation of two BioGills we see a great performance, not only from the BioGill units, but the BioGills deployed also enables an existing conventional technology to work, after previously failing to treat this very difficult wastewater. In combination with a basic aeration system, we are now treating 20m3 of this wastewater from more than 3,000 COD to less than 700 COD in 8 hours. This also shows how resilient our system is to difficult wastewater and how it can greatly improve performance of conventional treatment technologies. We are learning more possible combinations of the BioGill with other treatment technologie creating a one-plus-one-is-morethantwo solutions. Shrimp farms, SE Asia With a growing middle class there is an ever increasing pressure for supply of high value protein like seafood, the only way to provide this in a sustainable way is farming. But, the shrimp farming industry is struggling with disease and unhealthy ponds. BioGill has shown the ability to clean the pond water, stabilising the important parameters, and thus ensuring higher yield and better quality products.

Some nice side benefits are less water usage (exchange) and less pollution. Resort, Fiji The increasing tourism around the beautiful coastlines, especially in the Asia Pacific region, has put a burden on the water environment. At Mantaray Island there is a resort that struggled to treat their wastewater with a conventional activated sludge system. The result was a dying coral reef outside the island where the effluent was discharged and foul smell from the treatment plant. There were several reasons why the plant didn’t operate properly, but very high BOD of 692 and high FOG were the most important challenges. Two BioGill units were installed three years ago and the result is ‘carefree’ treatment of the wastewater (down to 25 BOD), a revived coral reef, no odor, and much of the treated wastewater is being used for irrigation at the resort reducing precious freshwater consumption. Tell us about some of the challenges faced and how you overcame them? The wastewater industry is still a very conservative business. Innovative even revolutionary technologies have difficulties to make their way into the market.

However, BioGill managed to enter the market by offering a real solution to a real problem. Outstanding results in treating very difficult wastewaters that competing technologies might struggle with have helped us overcome the barriers. How do you feel local government can help the situation in Asia? Local governments should implement and ENFORCE regulations that encourage polluters to take measures against environmental pollution, while supporting business development in this sector. Polluters and solutionproviders should be brought together by effective policies and procedures. What are the benefits of implementing your technology in the region? In populous and fast developing regions like Asia there is often a lack of supporting infrastructure, very much so when it comes to sewage systems and wastewater treatment. This creates a tremendous pressure on the environment. So there is great need for decentralised treatment of wastewater which is affordable, easy and quick to implement, and easy to operate we see that BioGill offer this value proposition. There is no longer a reason not to treat wastewater that isn’t connected to a

sewage system. Demand for energy is growing at a huge rate in Asia, and electrical production re uires huge amounts of water. As water resources are limited in most of Asia, how would implementing your technology help a utility increase efficiency? There are probably in two areas we indirectly save energy and water: A. Our solution is very energy efficient (0.3kWh/m3 water treated) B. The treated water can be recycled, for example for irrigation and other non potable water usag e , (i.e. toilet flushing, general washing etc) hence reduce water consumption Asia is a very important market for you, what are your plans moving forward for 2016? We aim to establish a distributor network in what we have identified as the most important markets, here we are well underway, and continue to develop our product so we can continue to deliver the best possible product for treatment of wastewater and aquaculture ponds. We will also launch a new product in mid 2016, stay tuned...

Feature - Asia’s Nuclear Boom

Singapore W W

ater, water everywhere! Water is a critical component to the generation of electricity for the cooling of many components and the treatment of waste water from the facilities. Here we take a little look at Singapore and some of the regional countries in Asia and understand the perspective of some of the market leaders. With the world placing a greater focus on environmental protection, Singapore’s homegrown water and wastewater treatment firms are making big waves outside of the Republic, helping to solve water problems for countries all over the world. According to International Enterprise (IE) Singapore, the Government agency driving Singapore’s external economy, the Republic has a vibrant cluster of more than 100 local water companies that have built up expertise across the water and wastewater treatment sectors. Their track record exhibits a global footprint, with numerous projects in Asia, the Middle East and even further afield to Latin America and Africa. From wastewater treatment to decentralized water management and the cleaning of industrial wastewater, Singapore companies have been tackling

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water problems globally. In the municipal water space, homegrown company WaterTech has built, owns and operates several wastewater treatment plants in China, said Mr Kow Juan Tiang, group director of environment and infrastructure solutions at IE Singapore. Meanwhile, the Silua Tek village in India, located near Jabalpur in the state of Madhya Pradesh, enjoys clean water supply, wastewater treatment and total sanitation thanks to companies such as Ecosoftt that deal with decentralized water management. Singapore companies also have strong capabilities in industrial wastewater management, and are able to assist industrial players in meeting increasingly stringent discharge standards, added Mr Kow. For example, Century Water has expertise in providing solutions for pharmaceutical firms and Flagship Ecosystems has built a textile wastewater treatment plant in Bangladesh. GLOBAL REACH In an earlier interview, Mr Theron Madhavan, CEO of Flagship Ecosystems, said the company was set up nearly 11 years ago during a “period of strong political and social interest” in seeing companies adopt an environmentally

responsible approach to business. Two years after it was incorporated, the company expanded into Indonesia and subsequently Bangladesh, where it built and now operates the largest central effluent treatment plant in the country. Revenue for the entity in Bangladesh, which has been operational since 2012, has increased by almost 270 per cent, said Flagship Ecosystems. Further opportunities abound in India, China, South Korea and Malaysia, said Mr Madhavan. “Both India and China have in recent years seen greater pressure from the state in clamping down on discharge of untreated effluent into waterways,” he said. “There has also been increasing pressure from buyers and end users demanding that suppliers operate in an environmentally responsible way. This has led to a growth in demand for solutions to help companies achieve their environmental objectives, presenting opportunities for us.” Another global company, mainboardlisted Hyflux, specializes in water treatment and has operations and projects in the Asia Pacific, Middle East, Africa and the Americas. The company, founded by Ms Olivia Lum, currently the group’s executive chairman and group CEO, began out of a small office at Tampines Industrial Park. It now

Nuclear Boom

Water Market employs about 2,500 staff. The group is now 25 years old and has a market capitalization of S$380.9 million. Last month, Hyflux won a US$50.4 million (S$72.5 million) contract through its wholly owned subsidiary to design, manufacture and supply a seawater reverse osmosis and sulphate removal facilities package in Khurais, Saudi Arabia. The group said in its latest results statement that the projects in the Middle East, North Africa and Singapore will be the main revenue contributors in the next few years. FLOURISHING TALENT ECOSYSTEM Local institutions are also producing water treatment providers. NanoSun, a local start-up born at a lab in Nanyang Technological University (NTU), last year clinched a S$4.3 million joint venture with a Chinese state-owned enterprise to treat industrial wastewater in the eastern city of Qingdao in Shandong province. The company had previously only conducted laboratory research and had not considered the extent of the value of the technology until a meeting with Chinese officials in 2014. The China Commerce Group for International Economic Cooperation saw the vast potential of NanoSun’s selfcleaning, 3D-printed membrane water filter technology in China, where rapid industrialization is driving demand for extensive wastewater treatment.

In just three years since it was founded in 2013, the previously five-man show now has 25 staff members globally. “China remains the main focus for NanoSun, and we have been receiving much interest in our water treatment systems. Most recently, a sugar producer from India approached us to develop a more efficient and powerful water treatment system,” said Dr Darren Sun, co-founder of NanoSun and associate professor at NTU’s School of Civil and Environmental Engineering. GLOBAL WATER HUB REPUTATION A DRAW Many local water treatment companies said Singapore’s reputation as a green city and global water hub is a reason why they are able to get ahead of competition globally. The environment and water industry is identified as a key growth industry for Singapore. In 2006, the Government committed $330 million to fund innovation and capability development in the industry, according to the Economic Development Board. In 2011, it allocated an extra $140 million, bringing the total amount committed to $470 million. “In the water industry, Singapore’s geographical size often takes a back seat. The country’s reputation as a green city and a global water hub means that by being a Singapore Company operating in the water space, Flagship is viewed by its business partners as experts and leaders in the industry,” said Mr

Madhavan. Co-founder of NanoSun, Mr Wong Ann Chai, added: “Over the years, Singapore has come to be recognized as a global hydro hub, and Singapore-developed solutions are much sought after. NanoSun is one such example and our 3D-printed TiO2 membranes are well received, particularly in emerging markets such as China and India. “Leveraging on Singapore’s strengths in connectivity, logistics and a skilled workforce, we will be able to effectively manage global operations from Singapore.” NanoSun’s Dr Sun credits the achievement of the company to the Government’s foresight to invest in water technologies. “The advanced water technology that we have in Singapore was developed by hundreds of scientists working over the past two decades and is not by chance. It comes only because there was foresight by the Singapore Government, which invested heavily in water technology.” WITH a small land area and limited resources, Japan has achieved economic growth through the strength of its manufacturing and other industrial operations. However, this resulted in pollution and other environmental problems, and companies involved in industrial activity have placed restrictions stipulated by a number of different laws on the discharge of water. Other countries have had similar experiences, with Southeast Asia and

other emerging economies, in particular, facing severe water shortages and degradation of their water environments resulting from factors such as increasing use of industrial water and rising living standards brought about by economic progress. It is against this environmental and social background that Hitachi supplies total solutions for protecting the water environment and making improvements. This article reviews the water situation in Southeast Asia and other emerging economies, and describes the industrial water treatment systems that Hitachi is offering in response. CHANGING WATER ENVIRONMENTS IN ASIA The water-related environmental laws in Japan include the Water Pollution Control Law enacted under The Basic Environment Law. These laws provide the basis for detailed regulatory limits for specific industries or locations, including those specified in the bylaws issued by local governments. A similar legal framework applies in Southeast Asia, with each nation stipulating quantitative rules for various water discharge criteria. A distinctive feature is that these quantitative rules on water discharges differ between

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the numerous industrial sites located around the region. One example is how some industrial sites with centrally managed wastewater treatment facilities are permitted to operate to looser standards than the host nation’s quantitative rules. This makes it essential to conduct preliminary studies when considering the construction of a plant. Considering the quality of industrial water supplies, there are also examples of companies installing their own systems for improving water quality to suit the intended end use. In India, meanwhile, top priority is given to irrigation to conserve precious water resources. Measures include the placement of restrictions on use of water for production at industrial and other sites, and also encouragement for water recycling (“zero discharge” practices). These factors mean that companies operating in Southeast Asia and other emerging economies need to build their own water treatment systems in accordance with local circumstances.

related fields. This section describes the industrial water treatment systems that are included among these technologies.

HITACHI WATER

Waste Water Treatment

TREATMENT SYSTEMS In Japan and elsewhere, Hitachi has built up extensive experience and know-how in both hardware and software for a diverse range of water-

Equipment The wastewater produced by industrial activity can be broadly divided into organic and inorganic wastewater. Treatment of organic wastewater typi-

Water Treatment Equipment Membrane-type drinking water treatment systems that use membrane filters to purify water to a level acceptable for drinking represent one form of water treatment. Compact and easy to maintain, these systems provide a choice of microfiltration (MF), ultrafiltration (UF), and other types of membranes, as appropriate, based on the water quantity and quality requirements, and can remove suspended solids as well as Escherichia coli (E. coli) and other microorganisms. Some industrial applications require high-quality purified water. In this case, water purification units fitted with components such as ion exchange towers or reverse osmosis (RO) membranes are used to remove impurities such as electrolytes, colloidal matter, and low- or high-molecular-weight organic material.

cally involves biological methods based on the use of activated sludge. Another type of biological treatment system that has emerged in recent years is the membrane bioreactor system. Combining activated sludge treatment with an immersed flat membrane to perform highly concentrated activated sludge treatment, this system is suitable for industrial waste water treatment where the requirements are for a high level of treated water quality together with ease of maintenance, space efficiency, and low cost. Another consideration is that many countries have established regulations on the presence of nitrogen in wastewater. This is in response to the severe impacts that the discharge of nitrogen in wastewater into oceans or lakes can have on ecosystems, such as various types of algal blooms. The method used to deal with nitrogen in waste water involves first using a nitrification treatment in which a longduration aerobic treatment process using activated sludge converts ammonium nitrogen into nitrate nitrogen. This is followed by the use of denitrifying bacteria under anaerobic conditions to covert the nitrate nitrogen into nitrogen gas. To perform this wastewater treatment efficiently, Hitachi has developed a

comprehensive immobilizing nitrogen removal system. This system enhances the capacity of the nitrification treatment process by using nitrifying pellets (inclusive immobilization supports) in which the microorganisms that form the activated sludge are encapsulated into 3-mm square cubes of agar-like polymer aqueous gel. In addition to boosting the efficiency of nitrogen removal, this system uses only about half as much pace as previous methods. Hitachi has had extensive experience with this technology over many years. Hitachi is now developing a system for treating wastewater with a high nitrogen concentration that uses inclusive immobilization supports embedded with anaerobic ammonium oxidation (ANAMMOX) bacteria capable of removing nitrogen directly from ammonium nitrogen. Because this inclusive immobilization technology also has the potential for deployment in other applications, Hitachi is proceeding with further research and development, including its use for the removal of other restricted substances. In the case of inorganic wastewater, on the other hand, it is necessary to choose a treatment method that suits the substance to be removed. One distinctive technology of Hitachi is its advanced fluorine treatment device. This device converts the residual fluorine in water treated using flocculation that contains hydrofluoric acid to apatite, and then precipitates it on the surface of a crystallized material. It uses an expanded-layer reactor structure that makes it simpler, easier to maintain, and less costly than existing twostage coagulation sedimentation devices. Equipment for Water Reuse Hitachi has for some time been developing systems that combine RO membranes with membrane bioreactor systems, and that are targeted particularly at regions that suffer from water shortages. These systems recycle water and supply it as high-purity treated water. Hitachi is also investigating systems that recover and reuse rainwater so that it can be provided as a resource for regions with limited water sources. While rainwater is often stored for use in emergencies after its contaminants have been removed, it can also be treated to make it suitable for various uses. Water recycling systems can be built by

us-

ing the fresh water and wastewater treatment systems described above to treat resources such as waste water and rainwater that have not been reused in the past. As a wide range of potential applications exist for water reuse, extending from general water supplies and the makeup water used in cooling towers to the highly treated water required by factories, Hitachi is seeking to work with customers to build systems that ensure the efficient use of water at production sites and other facilities. CONCLUSIONS This article has reviewed the water situation in Southeast Asia and other emerging economies, and described the industrial water treatment systems that Hitachi is offering in response. While emerging economies set wastewater standards equivalent to those in Japan, the regulations differ from nation to nation. This makes it necessary to investigate this issue before embarking on plant construction and make changes as required. Hitachi has technology and experience in a wide range of industrial water treatment systems able to comply with these regulations, as discussed along with examples in this article. These include water treatment using MF, UF, RO, and other types of membranes, organic waste water treatment using nitrifying pellets (inclusive immobilization supports), advanced fluorine treatment based on a precipitation reaction, and systems for water reuse that combine RO membrane equipment with a membrane bioreactor system. * with thanks to Hitachi & International Enterprise Singapore

Clive TURTON Managing Director – Asia Paci ic Clive Turton joined APR Energy as Regional Vice President for Business Development – Asia Pacific in April 2013, and now serves as Managing Director of the Asia Pacific region. Mr. Turton is one of Asia’s most experienced and successful power sector professionals and possesses a wealth of knowledge and experience in the Asian power sector across project development, financing and capital transactions. Mr. Turton has been involved in substantially all of Asia’s major power transactions as advisor, financier or developer during his 20-year career, including the acquisition and financing of the Sual, Pagbilao and Ilijan projects on behalf of Marubeni Corp and Tokyo Electric Power Corp. Mr. Turton was also involved in the privatization of electricity networks and assets in a number of Asian geographies including Singapore, Philippines, Korea and Thailand. Prior to joining APR Energy, Mr. Turton worked for over a decade in the Asian power industry as a project director for Mirant AsiaPacific and more recently as Head of Energy and Utilities for ING Bank. In addition to Mirant and ING Bank, his previous employers include Clayton Utz in Sydney and for Gide Loyrette Nouel in Paris. Mr. Turton holds his Bachelor and Law degrees from The Australian National University.

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l Welcome to PiMagazine Asia, can you tell us a bit about Yourself and company? APR Energy is a leading provider of fast-track mobile turbine power. Our fast, flexible and full-service power solutions provide customers with rapid access to reliable electricity when and where they need it, for as long as they need it. Over the years, we have installed and operated more than 2.5 gigawatts of power generation in more than 30 countries. I joined APR Energy in 2013, and serve as Managing Director of the Asia Pacific region. During my career over the past 20 years, I have been involved in many of Asia’s major power transactions as advisor, financier or developer while at APR Energy, Mirant Asia-Pacific and as Head of Energy and Utilities for ING Bank. l re uent Power outages increasing demand, unmet by a poor grid infrastructure are currently driving demand in the diesel gas generator market. How uickly can your business respond to the market from initial order to installation? APREnergy is the world leader in rapid deployment of turbine technology as well as diesel power modules. We have deployed the industry’s most efficient and low-emission technology for power plants from 15MW to 450MW at sites across the world in under 90 days from contract signature to COD. Our plants

operate in conflict zones, in third world countries as well as developed countries including Australia and Japan. l as is growing in Asia at a massive rate and has been forecast to overtake coal in the coming years. an you tell us about your gas generators and how you can meet these challenges? APR Energy operates one of the world’s largest fast-track gas power module plantsnear Mandalay, Myanmar. This 102MW plant was commissioned 90 days after contract and is one of the largest thermal plants in the country, running on indigenous natural gas and delivering a cheap and clean source of power to this fast-developing and power-hungry region. We also have a large gas plant plant operating in the Pilbara region of Western Australia. Our unique turbine technology deployed at that site operates on clean-burning natural gas and provides power to Horizon Energy, one of Western Australia’s two main utilities. This plant utilizes four TM2500+ units, a technology that APR Energy is uniquely able to provide on a fast-track basis. These units are also unique in the fast-track power market in that they can operate on natural gas, but also have the flexibility to operate on diesel as well as LPG, kerosene, and naphtha – making these units highly flexible to the needs of our customers where alternative or multiple fuels are available. l What projects are you most proud of in Asia? I am particularly proud of the work we did in Myanmar. Our award-winning 102MW gas project there was the first large-scale investment by a U.S.power company following the lifting of the sanctions, and was built in record time to serve a market that benefitted greatly from the additional power. I am also very proud of the work we were able to do with the local community; APR Energy was able to build new classrooms and provide materials for a number of schools in the area and it was a great experience for me personally to visit these schools and see the smiles on the faces of the kids that will benefit from improved educational infrastructure.

l Due to growing environmental restrictions around the World, what plans do you have in place to ensure your generators meet stringent environmental concerns? APR Energy is unique in the fast-track power business in our ability to provide world-class advanced turbine technology on a fast track basis. We deploy the TM2500 mobile turbine units to our sites around the world and this is the lowest emissions and lowest noise-producing fast-track power generation equipment available on the market. We have a number of customers for whom the environmental aspects of the available equipment is of great importance, and we are uniquely placed to serve those customers with this hightech mobile turbine equipment. l What are the key issues to enable power generation to remote communities for industrial and residential usage When you are talking about remote communities, you are typically referring to developing nations where power infrastructure is limited and the challenges to financing and constructing permanent generation may be nearly insurmountable. One of the advantages of fast-track mobile power is that the generating capacity is modular and can be easily and quickly transported anywhere in the world by land, sea or air. In addition, the power modules and gasturbines can be bundled,providing scalablegenerating capacity fromapproximately 10 MW to500 MW or more. Itâ&#x20AC;&#x2122;s also important to point out that this distributed power solution can be placed near the demand, reducing the need for transmission and distribution infrastructure and while also cutting the powerloss that occurs as electricitytravels long distances acrossthe grid. Finally, for developing parts of the world, up-front customerinvestment is minimal,avoiding long-termfinancing and credit issues. The customer provides the site and the fuel, and begins to pay only once power is generated. l ase of maintenance is very important to many when deciding on which genset to install. On installation, what do your company do to ensure the gensets keep the lights on? APR Energyhas an excellent reputation and a long track record of providing stable

and reliable power across the globe from conflict zones to developed countries. We are able to do this through our team of professional fast-track power plant operators and our world-leading installation team. We recognize that there is an important difference constructing and operating a fast-track plant and we have designed all of our systems and technology as well as trained our staff to ensure that we can offer the best reliability in the market. A unique aspect of our power solution is that we hire and train up to 70 percent of our workforce from the local community. When a project ends and our plant is decommissioned, those skills and capabilities remain in the community providing benefits for years to come. l Infrastructure development is particularly strong all over Asia at present. What market verticals are you seeing the most growth and what are the reason for this? Asia is the fastest-growing region both in terms of economic growth and population growth. Obvious drivers of this growth include two of the worldâ&#x20AC;&#x2122;s largest countries India and China, but in addition Asia contains a number of emerging economies that are rapidly moving toward modern and industrialized economies such as Thailand and Indonesia. Growth in power demand leads economic growth in developing countries and so where you see economic growth of 5% in developing Asian countries there will be 7% or 8% growth in power demand. The challenges of meeting this requirement for additional power generation through traditional sources is clear in the numerous gaps in generation and transmission across the region. APR Energy has been called upon many times by regional governments and industrial users to bridge the gaps created by growing demand and lack of traditional infrastructure. Through our ability to develop large-scale power generation infrastructure in 90 days or less, we have been able to ensure that people in these growing economies have access to electricity and ensure that economic growth can continue, as lack of electricity stifles economic growth. l The ability to tailor your products to a specific cus-

tomer application is very important and many companies do not have this fle ibility. an you give our readers an e ample of how you have tailored your solution to meet a customer re uirement and the benefits they received on receiving your solution? The turnkey project provided for Myanmar is a good example of our ability to customise a solution to meet the unique needs of a customer. In this case, the customer required rapid delivery of 82MW of power using indigenous natural gas. Our gas-fired generating modules provided one of the most reliable and fuel-efficient solutions in the temporary power market. Just as important, we were able to provide power modules with a fuel system designed to operate on low-pressure pipeline natural gas. Our solution also featured an advanced control system that allows for automatic operation, either locally or remotely. That said, the ability to operate the plant locally has not been an issue, since we have successfully hired and trained the majority of employees who installed the plant and now operate and maintain it from the local community. Ultimately, our ability to deliver this much-needed generating capacity within the aggressive 90-day timeframe was instrumental in our being hired to install an additional 20MW the following year to help offset reductions in hydropower during the spring dry season. l I would like to thank you for your time today, it s been a great e perience and an interview I m sure our readers will love. efore we sign off here, can you summarise why any company would benefit from working with you? We have installed 2.5GW of power in more than 30 countries around the world, helping to fuel economic growth and an enhanced quality of life for more than 25 million people. Part of what makes APR Energy unique is that we also provide more than power, as we are active in each of our communities and hire a large portion of our workforce locally. When you combine that added value that we bring to each of our projects with our long-established reputation for operational excellence and customer satisfaction, you can see why we have strong track record of project renewals and expansions and why we are a leader in our industry.

Economies Can’t Grow in the Dark by Clive Turton

n Southeast Asia only four countries rank above the world average on the United Nations’ Human Development Index (HDI), a comparative measure of life expectancy, literacy, education, standards of living and quality of life. Brunei, Malaysia, Singapore and Thailand score significantly higher on these measures than those on other side of the spectrum – countries such as Cambodia, Indonesia, Laos, Myanmar and Philippines lag far below the average. Among the “haves” and “have nots” there seems to be a common denominator – access to reliable electricity. The impact is significant. In those countries ranking above the world average on the HDI electrification is widespread. The same cannot be said for those countries lagging on the HDI. In Myanmar alone nearly 36 million (68 percent of the population) live without power, while in Indonesia one-quarter of its 240 million people – the equivalent of seven Londons or 30 Bangkoks – are without this essential

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ingredient for a higher quality of life. Statistics show that access to electricity generation can be life altering. In countries with reliable power: Average gross domestic product is six times higher Average life expectancy is 20 years longer Average unemployment is 33 percent lower Average monthly wages are 10 times higher The good news is that there’s an available solution that offers electricity in weeks rather than years for the tens of millions in the region who are without – mobile fast-track power generation. This source of distributed power, using state-of-the-art gas turbine technology and diesel and gas-powered reciprocating engine generators, offers myriad benefits as a bridge to a better quality of life and economic growth while permanent plants travel the long, expensive and uncertain road to completion. Those benefits begin with minimal upfront investment, since customers simply provide the site and fuel, avoiding long-term financing and credit issues.

Customers begin to pay only once the electricity is flowing. In terms of the equipment, mobile power modules and gas turbines are easily transportable by land, sea and air, and they can be bundled to provide scalable generating capacity from 10MW to 500MW or more – enough to provide power to thousands, even millions, of people. As a result of that mobility, generating capacity can be located near demand, reducing transmission and distribution infrastructure requirements and energy losses across long stretches of power lines. This is particularly significant in countries like Cambodia and Myanmar that experience power distribution losses of 18 and 25 percent respectively. Because these machines can be powered up and down quickly to meet fluctuating demand, they also are an ideal supplement to intermittent solar and wind power and in countries like Myanmar, whose heavy reliance on hydropower is adversely impacted during the annual dry season. With successful fast-track projects in more than 30 countries, my company has seen the nexus between new power generation and the creation of local jobs, increased household income and growth of revenue-generating industrial production. Similarly, the recipients of fast-track power soon gain access to things the developed world takes for granted, such as refrigeration and adequate lighting for schools and hospitals. The evidence is clear – access to reliable electricity is a game changer when it comes to enhancing the standard of living and quality of life. Through mobile fast-track power generation, developing nations can get out of the dark and begin to grow their economies in weeks rather than years. Mr. Turton is Managing Director, Asia Pacific, for APR Energy.

Standby Power Asia

Difficult industrial wastewater?

Fat, oil, and grease? High BOD?

Applications

Benefits

Dairies

<98% BOD removal

Soft drinks

<95% energy saving

Meat processing

Low maintenance

Retrofit existing plants

Low capex and opex

Decentralised sewage

Eco-friendly technology

Confectionaries

Modular and scalable

Breweries

Easy to operate

Wineries

Little or no odour

BioGill is a unique above ground, attached growth bioreactor that delivers highly effective, low cost, and energy efficient water treatment

www.biogill.com FOLLOW US ON TWITTER: @PIMAGAZINEASIA WWW.PIMAGAZINE-ASIA.COM | 35

Feature - Standby Power Asia Welcome to PiMagazine Asia, can you tell us a bit about Himoinsa HIMOINSA is a global corporation with over 30 years of experience that designs, manufactures and distributes power generation equipment. We have 10 factories and 12 subsidiaries around the world. Our presence in Asia is covered by a factory in China and 3 sales offices, 2 in China and 1 in Singapore. Our power range goes from 3 to 3.000kVA and includes Diesel, Gas, Rental and Hybrid generator sets, open and soundproofed in canopies and containers and we also manufacture lighting tower of up to 1.320.000 lumens. We have a highly professional engineering team behind that designs our product and customizes it to adapt it to what our clients need, making us one of the most flexible genset manufacturers on the market.

Marco PERILLO enera Manager, HIMOIN A ar East Pte.Ltd. Marco Perillo joined HIMOINSA after working for the FIAT Group for 10 years being responsible for Sales and Marketing activities in the FPT Division in Middle East, Europe and Asia. In 2009 he was appointed Sales & Marketing Director for HIMOINSA in Asia-Pacific, increasing sales revenues by 70%. He is now General Manager of HIMOINSA Far East, running the companyâ&#x20AC;&#x2122;s subsidiary located in Singapore and responsible for Sales & Marketing in the Asia-Pacific region, including 22 countries: China, Far East Russia, Mongolia, Japan, Korea, Hong Kong, Taiwan, Nepal, Bangladesh, Sri Lanka, Myanmar, Thailand, Laos, Cambodia, Vietnam, Philippines, Malaysia, Singapore, Indonesia, Papua New Guinea, Australia and New Zealand.

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re uent Power outages increasing demand, unmet by a poor grid infrastructure are currently driving demand in the diesel generator market. How uickly can your business respond to the market from initial order to installation? Our factories are highly flexible and have the capability to find solutions for any special requirement. We also keep stock of all major components for a fast delivery. In addition to our smooth manufacturing process, HIMOINSA also has a strong distributor network that has many years of experience in local installations and regulations, which ensures a rapid completion of the project.

as is growing in Asia at a massive rate and has been forecast to overtake coal in the coming years. an you tell us about your gas generators and how you can meet these challenges? We offer a wide range of power outputs, from 10 kW to 2.5 MW powered by Natural Gas, LPG and biogas. According to our estimations, 50% of the global market of gas generators will be concentrated in the APAC region in about 5 years. Since our full Gas range is designed to work in continuous power, the HIMOINSA gas gensets are an optimal solution of distribution power, generating near consumption point and avoiding those big thermal coal plants like the ones you mention. Our higher power range integrated inside the container all the components of the generator in order to make transport and installation as easy as possible. HIMOINSA has a vast experience in big plants of 2550 MW with generators working in parallel. What projects are you most proud of in Asia? We have been part of major projects for data centers in China. One of our biggest ones was providing 24MW of power to the data center of the biggest on-line portals in Asia, which consisted in 12 units of 2.500 kVA with remote radiators, quite an installation challenge. We have also provided backup power to the Xigaze Peace airport in Tibet, the highest in the world, located 4.500 m above sea level. The Telecom sector in Indonesia has now over 6.000 HIMOINSA gensets and we have undertaken

major projects in the commercial and residential sector in the Philippines. Due to growing environmental restrictions around the World, what plans do you have in place to ensure your generators meet stringent environmental concerns? As a manufacturer of power generation equipment, HIMOINSA takes the environment seriously and works with the best engine brands, selected regarding efficiency and technology, two important factors to ensure compliance with the environmental regulatory agencies worldwide. Our gensets can be compliant with the most strict emission requirements. What are the key issues to enable power generation to remote communities for industrial and residential usage The main issue in these cases is usually transportation. In some places, using an adequate road vehicles on unbuilt roads should be enough as long as the genset is properly secured and protected, but on other occasions, a helicopter can be required for access to very remote places. This issue translates into another problem, which is accessing these remote locations for maintenance of the equipment. Our gensets can have high capacity fuel tanks upon request which reduce the frequency need for refuelling and we also recommend our 1000h kits, which are a good choice to reduce maintenance intervals. With our fleet manager optional you can know the status of your equipment any time via mobile phone or the internet without having to travel to the site. HIMOINSA gensets can be left alone for a longer period of time in remote sites. ase of maintenance is very impor-

tant to many when deciding on which genset to install. On installation, what do your company do to ensure the gensets keep the lights on? HIMOINSA provides training onsite upon request to ensure that the equipmentâ&#x20AC;&#x2122;s maintenance will be done properly and have an excellent technical service worldwide at the disposal of all our clients. Also, we have recently launched a 1.000 hour maintenance kit for gensets with Yanmar engines that extends the maintenance interval by up to 4 times more operating hours than other manufacturers. HIMOINSA works with genuine spare parts and we also have a 24h on-line portal where our clients can order parts any time. We are constantly working on improvements to ensure our gensetsâ&#x20AC;&#x2122; best performance. Infrastructure development is particularly strong all over Asia at present. What market verticals are you seeing the most growth and what are the reason for this? In Asia we are experiencing a growing demand on Data Center segments especially in Singapore, Malaysia, Taiwan and Hong Kong. Also in China, in the coming 3-5 years the IDC boom will most likely continue due to the increasing number of internet companies like Alibaba, Baidu, Trencent, etc. and that have a big demand for data centers. All infrastructure development is growing rapidly all over Asia, and highway construction, public transportation, airports and hospitals are in high demand on most of the Asia-Pacific region. uel economy is another key driver when considering a genset. ust how economical are your sets and why? There is a huge trend that goes towards

using more economical fuels. We have a comprehensive Gas range of generator sets and have also developed Hybrid gensets with a variable speed engine which guarantees 40% fuel consumption savings when compared to a standard generator set and 20% when compared with other fixed speed hybrid gensets that are currently on the market. We choose the most efficient engines to reduce fuel consumption and we implement cooling solutions to limit energy consumption when the genset is not working at full load. The ability to tailor your products to a specific customer application is very important and many companies do not have this fle ibility. an you give our readers an e ample of how you have tailored your solution to meet a customer re uirement and the benefits they received on receiving your solution? One of our strengths as genset manufacturers is our capability of meeting the requirements of any special projects. Our Engineering team is able to customize any generator set, making specific design for the required application. We have adapted our gensets for military applications, for rental, power plants or standby applications. Our equipment can be customized to resist on extreme environmental conditions and to work in parallel, stand alone, etc. We can basically adapt to whatever our client needs. I would like to thank you for your time today, it s been a great e perience and an interview I m sure our readers will love. efore we sign off here, can you summarise why any company would benefit from working with you? Thank you for the experience, it has been a pleasure. I think the main reasons why a company would want to work with us is that HIMOINSA is a European brand with many years of experience in the sector, placed among the top players on the power generation market. As a vertical manufacturer, we produce all components of the gensets, which also make us very flexible, providing a high quality product and a thought-out design. We have a wide network of dealers and technical service all around the world and specifically in Asia we work with more than 60 dealers covering 22 countries. And on top of all of that, we are very proud of the human team that brings HIMOINSA together is composed by excellent people that work hard for the company and put passion in what they do to deliver great value and service.

Feature - Standby Power Asia Welcome to PiMagazine Asia, can you tell us a bit about Yourself and company? Dr. Andreas Emmert is Head of Sales Asia-Pacific for the Power Plants business of MAN Diesel & Turbo SE. Before taking on his current role he was responsible for the company’s power plant business in Western Africa and emergency diesel gensets for nuclear applications in Europe and South America.

Dr. Andreas EMMERT Head o a es Asia Paci ic or t e Po er P ants siness o MAN Diese & T r o E

Company: MAN Diesel & Turbo SE, based in Augsburg, Germany, is the world’s leading provider of largebore diesel and gas engines and turbomachinery. The company employs around 15,000 staff at more than 100 international sites, primarily in Germany, Denmark, France, Switzerland, the Czech Republic, India and China. The company’s product portfolio includes two-stroke and four-stroke engines for marine and stationary applications, turbochargers and propellers as well as gas and steam turbines, compressors and chemical reactors. The range of services and supplies is rounded off by complete solutions like ship propulsion systems, engine-based power plants and turbomachinery trains for the oil & gas as well as the process industries. Customers receive worldwide after-sales services marketed under the MAN PrimeServ brand. re uent Power outages increasing demand, unmet by a poor grid infrastructure are currently driving demand in the diesel generator market. How uickly can your business respond to the market from initial order to installation? We are aware of our customers’ challenges in terms of grid stability and increasing demand in an energy market that is changing fast due the rise of renewables, cheap oil prices and a fast developing LNG infrastructure. In this context, not only fast delivery times are important but also the capability to adapt to and anticipate new customer requirements. MAN Diesel & Turbo is known to do that and has manufactured also an important stock of standardized gensets and engines available immediately. Just recently we have inaugu-

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rated a new 96MW power plant in Senegal, which we commissioned within 15 months. as is growing in Asia at a massive rate and has been forecast to overtake coal in the coming years. an you tell us about your gas generators and how you can meet these challenges? Gas engines are claiming an increasing share of the market for electrical power generation: Thanks to their operational flexibility, clean combustion, high efficiencies, comparatively low emissions and the attractive price of natural gas. MAN Diesel & Turbo offers the most comprehensive choice of gas engines available in the market. The portfolio ranges from 7 to 20.7 Megawatts and covers the full operational spectrum. No matter which challenge faced in energy generation, we have the engine and power solution to tackle it. We are ideally placed to serve the growing market for gas engineoperated power plants, for power outputs of up to 250 Megawatts for grid connected power or captive power applications. Of course we also offer engine combined cycle solutions. To further strengthen our position in this segment, both of MAN’s gas engine models 35/44G and 51/60G are also available with two-stage turbochargers: the 35/44G TS and 51/60G TS systems. Two-stage turbocharging achieves excellent efficiency thanks to a low-pressure and a high-pressure turbocharger arranged in series. The new versions further add to our comprehensive line of gas engines while profiting from the company’s vast experience with two-stage turbocharged engines running on liquid fuel. The 35/44G TS is available in 12V and 20V-cylinder versions with mechanical outputs of 7.4 MW and 12.4 MW. The 51/60G TS can be delivered as an 18-cylinder version with outputs of 18.9 MW and 20.7 MW. While the 18.9 MW aggregate reaches a mechanical efficiency of more than 50%, the 20.7 MW machine is the most powerful gas engine currently available on the market. Two-stage turbocharging implies major benefits: The increase in

Economies can’t grow in the dark.

20%

INDONESIA

60 million people

68%

MYANMAR

36 million people

of the ASEAN population has no access to electricity

66%

CAMBODIA

10 million people PHILIPPINES

ontrib ting factors

Source: World Bank 2015

HYDRO-ELECTRIC GENERATION LOSSES HIGH IN DRY SEASONS

30%

29 million people

Source: IEA World Energy Outlook 2014

HIGH DISTRIBUTION LOSSES

24%

Benefits of electrification

25% CAMBODIA 18% MYANMAR

MYANMAR

Comparisons of UN and WHO data from the three best and three worst electriﬁed nations in ASEAN reveals:

LIFE EXPECTANCY

74%

hydro-electric generation capacity

+10 years

AVERAGE GDP PER CAPITA

AVERAGE MONTHLY WAGE

x 10

Source: Asian Development Bank (ADB) 2015

AGEING POWER PLANTS

70%

ASIA

of the world’s oldest power stations

Source: World Electric Power Plants (WEPP) database

Source: World Bank

How APR Energy’s mobile power plants can help SPEED OF INSTALLATION

PROXIMITY TO DEMAND

Can be up and running in

60-90 days

Installation close to usage improves efﬁciency

FLEXIBLE CAPACITY

10 to 500MW

turbocharging efficiencies in comparison to single stage turbochargers is mainly related to the intercooler set. MAN Diesel & Turbo is the only engine manufacturer that designs and builds its own turbochargers. This enables us to achieve the perfect matching of engine and turbochargers. What projects are you most proud of in Asia? Belawan - Indonesia MAN Diesel & Turbo supplied the plant in Belawan, Indonesia, with four MAN 18V48/60TS gensets and successfully commissioned the facility at the end of 2014. The plant has a total capacity of close to 160MW, approximately 80MW of which are supplied by the 48/60TS gensets. The remaining power is generated by eight overhauled MAN 9L58/64 engines. Kodda – Bangladesh In 2015 MAN handed over a 150 MW Dual-Fuel fired power plant in Kodda, Bangladesh. The plant was built together with Chinese EPC CCCE and operates nine 18V51/60 Dual-Fuel engines. Due

to lack of gas supply, the plant currently runs on Diesel. MAN dual-fuel engines allow seamless switching from liquid to gaseous fuels even during operation. Due to growing environmental restrictions around the World, what plans do you have in place to ensure your generators meet stringent environmental concerns? In recent years, local and global regulations covering exhaust gas emissions from internal combustion engines have become increasingly stringent. These regulations mainly focus on NOx, HC, SOx, particle matter and sound emissions and their surveillance. MAN Diesel and Turbo has developed the power plant technology to ensure full compliance. In terms of NOx, all engines manufactured today comply with at least World Bank 2007/2008 standard for operation in diesel or HFO. All our gas engines even

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comply with TA-Luft. Should engine-internal measures not suffice to meet the requested emission values, e.g. because the fuel quality is too low, we are offering emission gas treatment systems. What are the key issues to enable power generation to remote communities for industrial and residential usage I think flexibility is key: As the grid may not be very well developed, plants should be able to work in island as well as grid mode. Flexibility is also essential on the fuel side: While natural gas is clearly preferable with regards to emissions, it is not available everywhere. Generation solutions should therefore be able to run on different fuels, depending on what is available and feasible. And finally, one has to consider that especially developing economies are changing very dynamically. What is needed from a power plant today may differ substantially from the needs that have to be addressed in five or ten years’ time. Accordingly, MAN’s power plants are of a modular design that allows to add gensets to cope with increasing power demands whilst operating the engines at high loads which positively impacts their efficiency. One should pay attention to operational flexibility as well and look for a solution that can not only provide efficient baseload power, but is also up to other tasks, e.g. peak shaving or partnering with renewables. MAN’s dual fuel engine technology provides a solution that offers an excellent potential for remote communities for industrial and residential usage. They are very efficient, can feed into the grid or operate in captive mode and switch from liquid to gaseous fuels seamlessly during operation. And this technology also works well with renewable energies, like solar or wind power due to their excellent load rejection and acceptance capabilities. uel economy is another key driver when considering a genset. ust how economical are your sets and why? MAN Diesel & Turbo offers single cycle efficiency of more than 50% thanks to two-stage turbocharger technology combining MDT made engines with MDT

made turbochargers. In a combined heat and power installation an overall fuel efficiency of +90% can be achieved. MDT’s combined cycle power plants may be equipped with a steam turbine made by MDT that is perfectly matched to the power plant’s heat balance. The ability to tailor your products to a specific customer application is very important and many companies do not have this fle ibility. an you give our readers an e ample of how you have tailored your solution to meet a customer re uirement and the benefits they received on receiving your solution? MAN Diesel & Turbo has completed four island power plants for EDF PEI. All base load power plants, the four are equipped with 12 MAN 18V48/60 engines, each engine supplying 18.5 MW of electric power. All plants require a lot of redundancies to cope with EDF’s Health, Safety and Environmental requirements. Safety standards for hurricanes and earthquakes are very high. Due to these regulations and the customer’s high standards, the plants achieve a technical complexity and low emission level that is seldom seen in the field of diesel power stations. SCR catalytic converter technology and urea injection deliver significantly reduced emissions, while the dedicated seawater desalination plant allows for 700 000 tons of valuable drinking water to be saved every year. I would like to thank you for your time today, it s been a great e perience and an interview I m sure our readers will love. efore we sign off here, can you summarise why any company would benefit from working with you? MAN Diesel & Turbo has been working on challenges that matter for over 250 years. With Diesel & Gas engines and turbomachinery being our business, technological innovation has always been our passion. We want to improve what is already working and push the boundaries of what may still seem impossible today. To do so, we trust in and depend on the inventive genius, creativity and competence of the 15,000 people working with MAN Diesel & Turbo all around the world. All this we do for one reason only: So our customers worldwide can rest assured that they are using the most advanced possible product and get the best service available. They need to be sure, because they have to master the competition and stand their ground in worldwide trade, industrial production and energy generation day after day.

W W W. L A N D I N S T . C O M

W W W. A M E T E K . C O M

Asia’s New Silk

CONNECTING T he intersection of Central Asia and China, the mighty Tien Shan mountains rise abruptly out of the flat steppe. In Kazakh, these towering peaks are known as the “Heavenly Mountains.” To the south, toward their eventual junction with the Himalayas, they take on the name Pamir, or “Roof of the World.” The waters that flow from the Himalayan region alone nourish one-fifth of the world’s population. During the summer months, as temperatures rise, torrents of snowmelt rush day and night down through lush alpine valleys. Some of the water is captured by dams in the upstream countries of Tajikistan and the Kyrgyz Republic, powering turbines that generate electricity, mostly for local consumption. But the majority is allowed to continue along its downward path through the Syr Darya and Amu Darya river basins, through lands at various times contested by Alexander the Great and Genghis Khan. While these small, isolated countries have abundant hydropower resources, they lack the domestic demand to make use of their summer surplus, and their options for selling electricity abroad are limited. Hundreds of miles to the southeast, Pakistan—with its crowded cities and swel-

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tering summer temperatures regularly exceeding 100 degrees Fahrenheit—is losing out on a much-needed new energy source. Chronic summer power shortages force residents to endure the heat without fans or air conditioning. In fact, the news service Reuters estimates that Pakistan currently generates only about half

of its peak summer electricity demand. The result is rolling blackouts that can last up to 16 hours in cities and up to 22 hours in rural areas. These disruptions hold back business, hamper learning in schools, endanger hospital patients and interrupt vital government services. But what if the countries in the region

Road

ASIA could come together to harness and efficiently allocate this surplus power? That would likely look like CASA-1000, a U.S. Government-backed and World Bank-led project that hopes to install a $1.2 billion, 750-mile electricity transmission grid that would allow the Kyrgyz Republic and Tajikistan to sell hydropower to Afghanistan and Pakistan during the peak summer season. CASA stands for Central Asia South Asia and 1,000 denotes the number of megawatts to be exported to Pakistan, though an additional 300 megawatts is expected to be exported to Afghanistan. The project has been under consideration since 2006, when leaders of the four countries signed a memorandum of understanding committing them to the project. Now, with nearly all the requisite financing in place, construction could begin as early as next year, meaning power could flow as soon as 2018. CASA-1000 could have a game-changing impact on the region’s most pressing development and diplomatic challenge: fostering an increased regional interdependence that ties Afghanistan’s future to that of its neighbors. And energy is one of the most logical places to start. “A more interconnected region can serve

as a driver of economic development and as an anchor of peace and security,” said Deputy Secretary of State William J. Burns. “The most important—and perhaps most transformational—step we can take is to build a regional energy market linking existing transmission lines and large supplies of hydropower and natural gas in Central Asia with 1.6 billion energy-hungry consumers in South Asia.” If successful, the project could be replicated. As Assistant Secretary of State for South and Central Asia Affairs Nisha Biswal believes: “CASA would not only create an energy grid that provides direct benefits to the Tajikistani, Kyrgyzstani, Afghanistani and Pakistani people. It would also establish an important model for energy and economic cooperation between South and Central Asia. By working more closely together, the countries of the region can build the mutual trust needed to address other contentious issues, such as trans-boundary watersharing, in a more constructive manner.” The benefits of a regional energy market facilitated by CASA-1000 are manifold. For the Kyrgyz Republic and Tajikistan, which are among the poorest countries in the region, the project would mean much needed revenue. These countries face perennial energy shortages during the winter months when the rivers freeze and heating needs raise the demand for energy. While the export of summer surpluses would not have a direct impact on the winter deficits, the profits could be used to shore up consistent winter energy supply. Afghanistan would directly benefit from the transit fee—a tax levied on energy that passes through the country—it just negotiated with Pakistan. Afghanistan

could earn as much as $56 million annually from this fee plus returns on capital investments once the grid is operational. CASA-1000 will also provide Afghanistan a valuable source of clean summer energy that could either be re-exported to Pakistan or used to meet emerging domestic needs. These 300 megawatts will complement several other new sources of energy that are slated to come online between 2018 and 2020. These will include an Asian Development Bankfinanced 500 kilovolt line connecting Turkmenistan to Afghanistan, and efforts to develop Afghanistan’s Sheberghan gas fields, which are estimated to have vast power-generation potential. For Pakistan, the project could mean a reliable new source of energy that will be significantly cheaper and cleaner than its current energy sources. Right now the price of electricity in Pakistan— two-thirds of which comes from fossil fuels—averages around 13.2 cents per kilowatt-hour (kWh). On the other hand, the cost of supply in Tajikistan is around 1.5 cents/kWh. Since power would be provided during the peak summer demand, CASA-1000 would increase Pakistan’s power supply precisely when it is needed most. Perhaps most importantly, the project is expected to provide a vital infrastructure link between Central and South Asia, thereby giving Afghanistan, Pakistan and the countries of Central Asia a shared stake in a stable and prosperous future. At a February 2014 event for the project, Afghan Minister of Economy Abdul Hadi Arghandiwal said, “After years of violence and commercial isolation, regional countries have come to realize [each other’s] economic value.” A Challenging Opportunity

Officials believe that by increasing the economic interdependence of the countries involved, CASA-1000 will help lay the foundation for regional peace by fundamentally changing incentives for leaders in the region. But, as for any project of this size and ambition, there are challenges. For one, the four participating countries are not the only ones with a say in the matter. Neighboring Uzbekistan has come out strongly against the project, believing it threatens its water security by opening the door to additional hydropower projects like the proposed Rogun Dam in Tajikistan, which, if constructed, would be the tallest in the world. In 2009, Uzbekistan disconnected Tajikistan from the Central Asia Unified Power System in part because of political tensions over this issue. Another criticism that has been leveled at CASA-1000 is that the surpluses have been exaggerated. A recent Economist article notes how the Kyrgyz Republic has been importing electricity from Tajikistan to conserve water ahead of an anticipated energy shortage this winter. However, though it has indeed been a dry year, the energy shortage is due more to the fact that Uzbekistan shut off gas supplies back in April, shortly after the Russian gas giant Gazprom took over the Kyrgyz gas network, according to USAID officials. USAID, through its Regional Energy Security, Efficiency and Trade project, will provide $785,000 to help Pamir Energy extend power lines across the border from Tajikistan to Afghanistan. USAID Project feasibility studies have meticulously mapped the historical hydrological data from the region and taken note of the tendency for there to be periods— like this year—of severe dryness. Nevertheless, the studies have also made it quite clear that, even during years when there are minimal water inflows, most

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of Pakistan’s and Afghanistan’s energy demand at peak hours can still be met. As it emerges from decades of conflict, Afghanistan’s uncertain future poses an additional challenge. With the pending withdrawal of international forces, security is a key issue for CASA-1000, both during construction of new power grids and after. Threats like landmines, sabotage and theft of equipment must be addressed, and contingency plans have been put in place to mitigate their potential impact. Planning has also involved the local communities living along the project’s proposed route, and community support programs are being readied to help share the project’s benefits with conflict-affected and vulnerable popula-

tions in the area. Nobody ever said that forging lasting links between Afghanistan and its neighbors would be a riskless endeavor. With the military drawdown of U.S. troops underway, development projects such as CASA-1000 rise in importance in fulfilling the goal of regional security. As Deputy Assistant Secretary of State for South and Central Asian Affairs Fatema Sumar has said, “We have a long-term commitment to Afghanistan and Central Asia. It is no longer an Afghanistan military commitment, but it is a political commitment, an economic commitment, a development and diplomatic commitment. It’s telling that the United States is working with its partners to advance opportunities to promote long-term, sustainable economic growth in the region.”

With a new government now in place, there is hope that Afghanistan is on its way to resuming its status as a strategic crossroads connecting Central and South Asia and beyond over a “New Silk Road” The traditional ties that bound South and Central Asia with Afghanistan and beyond were largely severed during the 1980s under Soviet occupation. But connections along a New Silk Road are deepening, resulting in expanded regional stability and prosperity. Intraregional trade between Central Asian countries grew fivefold between 2000 and 2008, and the value of intraregional trade in food products, minerals and textiles has since doubled. The U.S.-backed New Silk Road initiative connects Afghanistan to the economies of Central and South Asia to promote prosperity and stability across the region. The initiative focuses specifically on building a regional energy market, facilitating trade and transport, easing customs and border procedures, and promoting people-to-people ties, especially among businesspersons and entrepreneurs. Expanding regional energy trade and cooperation is an important next step in this process. CASA-1000 complements other regional energy projects that are currently under development. These include TUTAP, which would link the power grids of Turkmenistan, Uzbekistan and Tajikistan with those of Afghanistan and Pakistan, and TAPI, a proposed natural gas line that would run from Turkmenistan through Afghanistan into Pakistan and then to India. The United States hopes that, as each of these projects comes online and is connected to the larger regional energy grid, Afghanistan may one day be able to fulfill its potential to be a regional energy hub. Officials from the participant countries seem to agree. “This project is of international importance,” said Osmonbek Artykbaev, former minister of energy and industry of the Kyrgyz Republic. “The demand for electricity in Central and South Asia is growing every year, and CASA-1000 is the first step toward the development of a larger regional energy market.” *with thanks USAID, Economist

Feature - Standby Power Asia

Csilla KOHALMIMONFILS Head o trateg and Ne siness at EN IE Asia Paci ic

Before joining ENGIE in 2011 as Strategic Projects Director, Csilla held senior functions at various energy companies in Hungary, including MOL Group. Csilla started her career with Unilever where she headed up business development projects in Europe and Latin America. Later, at the Boston Consulting Group, she developed new business opportunities and managed change projects for corporate clients across the world. Csilla holds a BSc in Chemical Engineering and an MSc in Bioengineering from the Technical University of Budapest (Master thesis in Molecular Biology at CNRS— Institut Jacques Monod in Paris). She also holds an MBA from INSEAD, Fontainebleau.

46 | POWER INSIDER VOLUME 5 ISSUE 2

Welcome to PiMagazine Asia, can we start with telling us a little about you and your company? ENGIE is a large multinational energy company, present in the power & gas value chains as well as in the growing energy services space. With a 150 thousand employees, ENGIE is present in 70 countries around the world, giving it the opportunity as well as the responsibility to become an energy architect during this large scale energy transition leading to a more decentralized and more sustainable energy future. These are very exciting times for the energy industry. In order to mobilize for building this future, ENGIE is currently undergoing the largest reorganization of its history, bringing new technologies and solutions to its customers in the territories where we operate. Decentralized solutions require a customer centric, decentralized organization with the active involvement of local stakeholders. Smart grids can optimize the use of existing energy sources and infrastructure, and can help balance an increasingly distributed generation portfolio. The new technologies also present a unique opportunity for developing countries to “catch up” much faster than ever before was possible. Smart grids are such a technology. Microgrids based on renewable energy sources can bring electricity to remote communities without the need to invest in large scale transmission infrastructure. Smart technologies allow for metering, billing and payments through mobile telephones, without the need for expensive infrastructure and back-office operations. What do you feel are the current challenges in Asia s mart rid? The greatest challenge to developing Asia’s smart grids is the lack of clear incentive policies and regulatory frameworks. There is clearly a huge market potential, and therefore great interest in investing in smart grids, but red tape and national protectionism in most countries makes navigating the bureaucracy extremely challenging. There is also a general lack of energy literacy. Awareness of the means and effects of energy efficiency measures is generally low, and subsidies distort the market value of energy sources. Lastly I would talk about smart grids, rather than Smart Grid. Asia’s grids are still mostly separated.

Apart from a lack of physical interconnection infrastructure, there is a complete lack of grid code harmonisation, due to very different market structures, energy/subsidy policies nation by nation. The interconnected grid in Europe took decades of harmonisation efforts mandated by the European Commission. This is just not a reality in Asia today. How would you define the mart rid ? A Smart Grid is one which offers a dynamic balancing/optimizing of energy sources and loads connected to it. In your opinion, what can the regional governments in Asia do better to ensure the swift implication of a mart rid network? For remote communities, where the aim is first time or full electrification, regional governments could benefit from investments by cutting red tape and launching specific policies, programs to incentivise smart grid development. ADB and other multilaterals are ready to help such developments, and private capital is also lining up to invest. For developed nations it is also important to have clear and stable policy frameworks supporting national targets with regards to smart grid deployment. What countries are showing the most promise in terms of mart rid and why do you think this is? Commercial smart grids, connected to the grid will spur in developed countries like Japan, South Korea and Australia, where grid protocols and incentive programs exist. Island countries like Philippines and Indonesia will benefit from electrification programs, but slowed down initially by general difficulties of doing business in these countries. Some successful projects can pave the way for mass deployment. In summary, what does the future hold for smart grid development in Asia over the coming 12-1 months? Overall smart grid development is due to take off in Asia, with the next 12-18 months paving the way in determining winning policies and business models. Editors summary and Interview end with thanks and credits….

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ASIA’S NUCLE ENERGY GROW

n Asia is the main region in the world where electricity generating capacity and specifically nuclear power is growing significantly. n In East through to South Asia there are 128 operable nuclear power reactors, 40 under construction and firm plans to build a further 90. Many more are proposed. n The greatest growth in nuclear generation is expected in China, South Korea and India. In contrast with North America and most of Western Europe where growth in electricity generating capacity and particularly nuclear power leveled out for many years, a number of countries in East and South Asia are planning and building new nuclear power reactors to meet their increasing demands for electricity. Through to 2010 projected new generating capacity in this region involved the addition of some 38 GWe per year, and from 2014 to 2025 it is expected to be 1400 GWe, over 120 GWe per year, very little of this being to replace retired plants. This is about 46% of the

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world’s new capacity in that period – under construction and planned (current world capacity is about 6200 GWe, of which 380 GWe is nuclear). Much of this growth will be in China, Japan, India and Korea. The nuclear share of this to 2020 is expected to be considerable in three of those countries, especially if environmental constraints limit fossil fuel expansion. Looking more narrowly at Southeast Asia (excluding the above four countries), a 2013 World Energy Outlook Special Report from the OECD/IEA said: Nuclear power has a limited role in Southeast Asia over the Outlook period. This reflects the complexities of developing a nuclear power program and the slow progress to date of most countries that have included nuclear in their long-term plans. Vietnam is the most active and is currently undertaking site preparation, work force training and the creation of a legal framework. Moreover, Vietnam has signed a cooperative agreement (that includes financing) with Russia to build its first nuclear power plant, with construction expected to begin in late 2014 and nuclear to enter the power mix before

2025. Thailand includes nuclear power in its Power Development Plan from 2026. While these plans could face public opposition, the country has very limited indigenous energy resources, which is expected to be a key driver behind its development. We project Thailand to start producing electricity from nuclear power plants before 2030. There are currently 123 nuclear power reactors operable in five of those countries of the region plus Taiwan – total of more than 109 GWe, 41 units under construction (with several more due to start construction in 2010), firm plans in place to build 92 more, and serious proposals for many more. In addition, there are about 56 research reactors in fourteen countries of the region. The only major Pacific Rim countries without any kind of research reactor are Singapore and New Zealand. apan 43 units (40 GWe) operable (though many of these shut down temporarily), 3 under construction, 9 planned (total 13 GWe), also 14 research reactors. Japan was generating up to 30% of its electricity from nuclear power up to

EAR WTH

under construction (26.9 GWe), 40 planned (46.4 GWe), many more proposed; also 16 research reactors. China is moving ahead rapidly in building new nuclear power plants, many of them conspicuously on time and on budget. Some under construction are leading new-generation western designs. Chinese electricity demand has been growing at more than 8% per year. The electricity demand is strongest in the Guangdong province adjacent to Hong Kong. National plans call for some 58 GWe nuclear by 2021, requiring an average of 9700 MWe per year to be added. The Chinese industry projects 150 GWe nuclear by 2030. China has built a small advanced hightemperature gas-cooled demonstration reactor (HTR) with pebble bed fuel, which started up in 2000. A commercial prototype HTR based on it is under construction, the most advanced HTR project in the world. China also leads research on molten salt reactors.

2011. By 2017, nuclear contribution was expected to increase to 41%, and longer-term plans were to double nuclear capacity (to 90 GWe) and nuclear share by 2050. However, following the Fukushima accident in March 2011, these plans are scaled back, to nuclear providing 20-22% of electricity. The new reactors most recently started up include third generation advanced reactors, with improved safety systems. The first of these was connected to the grid in 1996. Japan is committed to reprocessing its used fuel to recover uranium and plutonium for re-use in electricity production, both as mixed-oxide fuel in conventional reactors, and also in fast neutron reactors. Japan has a high temperature test reactor which has reached 950째C, high enough to enable thermochemical production of hydrogen. It expects to use some 20 GW of nuclear heat for hydrogen production by 2050, with the first commercial plant coming on line in 2025.

Republic of orea outh orea 25 units in operation (23 GWe), 3 under construction (4.2 GWe), 8 planned (11.6 GWe), also 2 research reactors. South Korea meets 30% of its electricity needs from nuclear power, and this is increasing. The national plan is to expand to 36 nuclear power reactors by 2030, including advanced reactor designs, and achieve about 40% nuclear supply. Demand for electricity in South Korea is increasing about 2.5% per year. In collaboration with US companies, Korea developed the 1000 MWe OPR1000 nuclear reactor which is 95%

locally-made, and may be exported to Indonesia and Vietnam. The newer AP1400 model is based on it, and four are being built in United Arab Emirates in a $20 billion deal, having been sold against strong competition. South Korea has a US$ 1 billion R&D and demonstration program aiming to produce commercial hydrogen using nuclear heat about 2020. North orea 2 units partially built but subject to political delays, also 1 research reactor. North Korea was moving towards commissioning one small power reactor, but concern focused on attempts to develop illicit weapons capability caused this to be halted. The USA and South Korea offered assistance in substituting two reactors which would not produce weaponsgrade plutonium, and agreement for these was signed late in 1995. They are (South) Korean Standard Nuclear Power Plant type and construction of the first was about one third complete when construction was abandoned. India 21 units in operation (5.3 GWe), 6 under construction, 22 planned, 35 proposed; also 4 research reactors. India has achieved independence in its nuclear fuel cycle. Nuclear power currently supplies less than 4% of electricity in India from 21 reactors. There are six units under construction, including a second large Russian reactor, and four PHWRs. A further 22 reactors are planned beyond that, including four more Russian units and two modern

hina 30 units in operation (26.9 GWe), 24

French ones. Plans are for 15 GWe by 2020. India is a pioneer in developing the thorium fuel cycle, and has several advanced facilities related to this. A 500 MWe fast reactor is due to start up in 2015. Pakistan 3 reactors in operation, 2 under construction, 2 planned, also 1 research reactor. Pakistan generates almost 5% of its electricity by nuclear, its third power reactor started up in 2011, and two more – supplied by China – are under construction. Two larger ones are planned near Karachi. The government plans for 8.9 GWe of nuclear capacity at ten sites by 2030. angladesh 2 units planned, 1 research reactor In Bangladesh, the Bangladesh Atomic Energy Commission plans to build two 1200 MWe Russian nuclear reactors by 2021, with Russian finance. It has one operating research reactor. Indonesia 1 reactor planned, 4 proposed, 3 research reactors. Demand for electricity in Indonesia has been growing rapidly, and this promoted development of several independent power projects. The government focus has changed from building large units for the JavaBali grid to building an initial small reactor near Jakarta. ietnam 4 reactors planned, 6 proposed, 1 research reactor. In Vietnam, two Russian reactors total 2000 MWe are planned at Phuoc Dinh in the southern Ninh Thuan province to come into operation from by 2020, followed by another 2000 MWe using Japanese technology at Vinh Hai in the same province. These plants would be followed by a further 6000 MWe by 2030, subsequently increased to having a total of 15,000 MWe by 2030. In January 2015 the AEA announced a further delay, giving construction start about 2019. Demand is growing rapidly and is expected to reach about 320 TWh/ yr in 2020 – from 123 TWh in 2012.

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Over one-third of its power comes from hydro, one-third from gas and the rest from coal or imported from China. It has a research reactor at Da Lat, operated with Russian assistance. Thailand 5 reactors proposed, 1 research reactor. Interest by Thailand in nuclear power has revived due to a forecast growth in electricity demand of 7 per cent per year for the next 20 years. About 70% of electricity is from natural gas. Capacity requirements in 2016 are forecast at 48 GWe. In the Thailand Power Development Plan 2010-30, which was approved in 2010, there is 5000 MWe of nuclear capacity envisaged, with 1000 MWe units starting up over 2020-28. The first power plant will be internally financed. Thailand has had an operating research reactor since 1977 and a larger one

is under construction but apparently halted. Philippines 1 reactor proposed, 1 research reactor. The Philippines has one power reactor completed in 1984 but it never operated due to concerns about bribery and safety deficiencies. In 2007 the government set up a project to study the development of nuclear energy, in the context of an overall energy plan for the country, to reduce dependence on imported oil and coal. In 2008 an IAEA mission commissioned by the government advised that the nuclear plant could be refurbished and economically and safely be operated for 30 years. As well as this, the government was considering two further 1000 MWe Korean Standard Nuclear Plant units, using equipment from the aborted North Korean KEDO project.

Malaysia 2 proposed, 1 research reactor. In 2008 the government announced that it had no option but to commission nuclear power due to high fossil fuel prices, and set 2023 as target date. Early in 2010 the government said it had budgeted $7 billion funds for this, and sites are being investigated. Malaysia wants a proven type of 1000 MWe-class reactor which is already deployed. Plans are to be presented to the government in 2015. In July 2014 the minister responsible for MNPC announced a feasibility study including ‘public acceptance’ on building a nuclear power plant to operate from about 2024, with 3-4 reactors providing 10-15% of electricity by 2030. Although sometimes included with ‘renewable’ resources, nuclear power depends on uranium supplies that are strictly limited. Rising worldwide demand for uranium can only push prices upwards, causing more problems for burgeoning Asian nations. The first generation of nuclear power stations were introduced with promises of electricity that was ‘too cheap to meter’. But after many, many billions of dollars of investment worldwide, nuclear energy is still normally 20% to 50% more expensive to produce then energy from coal is. Coal may have the greenhouse gas taxes, which are likely to increase the price of coal closer to its ‘real’ costs, but nuclear also has its hidden expenses – often ignored when investment decisions are made. Invisible costs include decommissioning and waste disposal and the perennial safety and security fears that have not yet been fully addressed anywhere in the world. In Asia, particularly, many regions suffer from frequent earthquakes with the occasional tsunami. Nuclear stations will also form a prime terrorist target, with either hardware or software attacks. But nuclear power will, at present, undoubtedly fill the gaping hole in energy supplies. Just how Asia manages this over the next few decades will determine the cost (estimated to be at about a billion dollars per gigawatt) and how much nuclear’s massive expansion into the continent will drain resources that could provide a real long-term solution to the energy crisis. * With thanks to WANO and the IAEA.

ENHANCED LEARNING FOR NUCLEAR PLANT UNDERSTANDING

Learning Simulators: Enhancing Nuclear Plant Learning As the world’s preeminent supplier of full scope operator training simulators, L-3 MAPPS introduces Learning Simulators to bridge the gap between early nuclear worker training and operator training. This innovative new software environment leverages our detailed and accurate plant models. But instead of focusing on the procedural aspects of operating your plant, Learning Simulators provides a fully interactive and visual environment designed to facilitate true understanding of your plant’s behavior. For more information on L-3 MAPPS’ Learning Simulators, visit L-3com.com/MAPPS or send us a request for a white paper at power.mapps@L-3com.com. MAPPS

L-3com.com

Feature - Standby Power Asia

Michael CHATLANI Michael Chatlani assumed responsibility for L-3 MAPPS’ Power Systems and Simulation business’s sales in 1996, and was named vice president, marketing & sales in 2005. He and his team grew sales and market presence, establishing the company as the world leader in the delivery of nuclear power plant simulators. The globally envied Orchid® brand— the software that drives L-3 MAPPS simulators—was also developed under Mr. Chatlani’s leadership. He is supported by sales professionals, a proposal development team and several sales representatives globally. Prior to 1996, Mr. Chatlani held various positions in project management implementing both energy management and power plant simulator projects. Mr. Chatlani holds a Bachelor of Engineering (Mechanical) degree from Concordia University in Montreal, Canada.

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Welcome to PiMagazine Asia, can you tell us a bit about yourself and the company? I have been in the energy sector for 28 years. At first, I managed energy control system projects. I have also managed power plant simulator projects (both fossil and nuclear), and then moved into marketing and sales for power plant simulators. I am originally from Bermuda and graduated from Montreal’s Concordia University with a bachelor of mechanical engineering degree, control systems option. I have had the great fortune of working at two fantastic companies over the years— CAE Inc., and where I am now—L-3 MAPPS, a division of L-3. L-3 acquired CAE’s marine, power and space businesses in February 2005. Since then, I have served as vice president of marketing & sales for our Power Systems and Simulation business. We have been building power plant simulators, mainly to train power plant operators, and CANDU plant computer systems since the early 1970s. Today, our power plant simulators are used by leading power plant operators around the world – from the Americas to Asia. L-3 MAPPS is a leading supplier of high-precision nuclear power plant simulators. What is the purpose of these nuclear power plant simulators? There are different applications for nuclear power plant (NPP) simulators. NPP simulators are most widely used for operator training. As you can imagine, when an operator is running a valuable asset, like an NPP, where human error could have catastrophic consequences, it is imperative that the operations personnel are the best of the best. To become a senior reactor operator or reactor operator, it takes many years of intensive training. Part of this training focuses on operating the plant in all conditions. Of course, operators must be able to run the plant at normal baseload conditions, generating full power reliably and safely. But they must also be able to manage the plant when transient or abnormal or even accident conditions might occur. To do this, operators are trained on NPP simulators that reproduce the plant’s actual control room environment. They use software that produces the mathematical models representing the systems of the entire NPP that provide the

various conditions an operator may face. It is important for the operator to be trained in the most realistic training environment. Instructors use a computerized instructor station to control all aspects of the simulation and to provide posttraining analysis and debriefing to the students. Many of today’s simulators are so advanced that they are also used to support plant engineering tasks, like analysing the impact of plant equipment changes before they are committed to the plant and improving the plant operating procedures, among others. NPP simulation has come a long way over the years. Today, some NPP researchers and designers are also using our simulators to check their designs. In your view, why has -3 MAPP become successful in this niche field? In a word: focus! We always saw ourselves as a company that is not simply providing training devices, but making an important contribution to nuclear safety. We have very talented people working on our projects, a disciplined management team that focuses on our core strengths, a strong commitment to constantly evolving our technology, and the most robust, userfriendly technology in the market. Equally as important, L-3 MAPPS has a significant customer base that values L-3 MAPPS’ reliability and also knows that we listen carefully to our customers to ensure that we are meeting their challenging needs. The philosophy here is simple. If we take care of our customers, they will appreciate the value we bring to their projects, leading to repeat business and a reputation for excellence. Who are the main users of your operator training simulators in Asia? In Asia, we have full-scale, fullfidelity NPP operator training simulators in China and the Republic of Korea, and just recently delivered our first simulator in Japan. Most of the simulators that we have delivered in China support the training for pressurized water reactors (PWR). These simulators support China General Nuclear’s Daya Bay, Ling Ao and Ling Ao Phase II plants and are all located near Shenzhen in Guangdong Province. We have also deployed simulators for the Hongyanhe Phase I plant, which are located in Wafangdian in Liaoning Province. Another operator

training simulator that supports two CANDU pressurized heavy water reactors was put into service for China National Nuclear Power’s Qinshan Phase III plant. The simulator is located at the plant site in Haiyan County in Zhejiang Province. In Korea, Korea Hydro & Nuclear Power has been a longtime user of an L-3 MAPPS full-scale simulator at Wolsong nuclear power plant in Gyeongju, North Gyeongsang Province. This simulator is referenced to Unit 2 at Wolsong. We have also just signed a new contract with KHNP to build another full-scale simulator for Wolsong Unit 1. In Japan, under contract to Westinghouse Electric Company, L-3 MAPPS delivered a full-scale 1,000 MWe class PWR simulator equipped with severe accident simulation capability for a customer in Tokyo. The simulator is used to teach the end customer’s staff plant responses, ranging from normal operations to severe accidents. In the early 1 0s, -3 MAPP changed the way power plant simulation was developed and hasn t looked back since then. That’s right. In 1991, L-3 MAPPS launched its successful real-time, graphical, object-based simulation and runtime environment, ROSE®, which is now called Orchid® Modeling Environment. Releasing this product had a big impact on our business and on the industry. ROSE® was developed to address a set of very real problems that all vendors and customers faced in the late 1980s. At the time, virtually all projects suffered from significant schedule delays that seriously impacted their training programs, and customers acquired software that was complex, often unreadable, not uniform in terms of depth of simulation, and difficult to maintain. Project schedules were so lengthy that vendors suffered from extensive staff turnover. When a plant modeler left, the new modeler often had to start over from scratch rather than try to understand and complete the existing code. The second problem was that there was no way of enforcing uniformity in the depth of simulation or the quality of the coding—despite the standard models that were available and used by the more experienced modelers. In addition, even if a “standard” model was used, subsequent changes to it could seriously alter the model’s performance.

To address these issues, the design rules (not guidelines) for ROSE® were as follows: 1. The depth of simulation for any model had to be 100 percent independent of the modeler. The model could only use standard models that were successfully tested and approved as offering the correct fidelity and level of complexity for the project. This also applied to the modeling of the individual components/objects (valves, motors, heat exchangers, etc.). 2. The details of the models had to be 100 percent visible to anyone who looked at the model. This meant that, in the case of staff turnover, the new modeler could look at the model and see what was done and simply continue and complete the model. There would never be a rewrite of any software. 3. The modeling had to be completely graphics-based; the modeler would design the software model exactly the same way a designer would design a plant—by connecting objects (icons) representing plant equipment, together with pipes or cables to create a schematic of the model. This schematic would in turn reflect the plant drawing exactly. At no point would the modeler need to look at or modify the source code created by the schematic. In fact, the modeler would not even have to know the computer language of the underlying code. In this way, uniformity of code could be guaranteed. The resulting schematic would be available to run as a highly interactive real-time graphical schematic that could be used for calibrating the model and as a training tool in itself. 4. The models generated by ROSE® had to be 100 percent compatible with any other handwritten models 5. The schedule for developing, integrating and testing ROSE® models had to be at least 50 percent faster than developing the models using traditional coding techniques. 6. The resulting product had to look and function overwhelmingly superior to anything else on the market. All of these requirements were achieved because we had the basic tools in-house—excellent schematic

translators, robust and extensive object libraries, full control over our runtime environment, and the leading graphical editor and runtime animation tool at the time, which could be modified as required to develop the unique ROSE® features. Finally, there was a dedicated and skilled team who worked tirelessly to achieve all the design requirements. Since that point, there has been no looking back. We were successful in deploying ROSE® immediately on our projects and then Orchid® Modeling Environment. For the past 25 years, almost all plant models on all simulators delivered by L-3 MAPPS have been developed by us and maintained by our customers in a graphical, easy-to-use, easy-to-maintain environment. This must have been a major turning point for -3 MAPP . Yes, indeed it was. Up until then, we were viewed as another simulation supplier in the power plant simulation domain. And, we were definitely not the industry leader. From that point on, though, we became known as an innovator in the field. This spirit of innovation has grown stronger and we are proud of our leadership role in the industry. We continue to invest in our Orchid® products, enhance our technologies and ensure that they evolve as customer needs change. You mentioned severe accident simulation earlier. How has Orchid evolved since the ukushima Daiichi reactor event to ensure operators are fully up to standard? The Orchid® simulation environment is designed to communicate with engineering-grade models that incorporate degraded reactor core conditions that result in fuel melting, including cladding oxidation and hydrogen generation, vessel failure, containment failure, fission product release and loss of water inventory in the spent fuel pool. Post-Fukushima, we have delivered several simulators with these capabilities by connecting the Electric Power Research Institute’s (EPRI) Modular Accident Analysis Program (MAAP5*) to the simulators and running the MAAP5 models in real time. MAAP5 is a software program that performs severe accident analysis for nuclear power plants, including assessments of core damage and radiological transport. The simulator models include support for the

*A valid license to MAAP5 from EPRI is required prior to a customer being able to use MAAP5 with Licensee’s simulator products. EPRI does not endorse any third-party products or services.

connection of external power and water sources, part of the diverse and flexible (FLEX) response strategy developed by industry to address challenges experienced at the Fukushima Daiichi power station following the earthquake and tsunami on March 11, 2011. While demand for this kind of severe accident simulation has increased following that important event in our industry, deploying such simulations was not new to us. We were very fortunate to have delivered MAAP4, the predecessor to MAAP5, on a fullscale operator training simulator in 2000. Slovenia’s Nuklearna elektrarna Krško challenged us in the late 1990s to integrate MAAP4 on the Krško fullscale NPP simulator and has since held regular simulator-based training courses on severe accidents and associated mitigation actions. We will always be grateful to NEK for their vision in this area. ull-scale, plant-specific, operator training simulators are used to train licensed operators at nuclear power plants one to two years before the fuel loading of those plants. ut there is an e tensive training cycle for nuclear workers, both those that will become operators and others who will play other important roles in the plants, long before they are e posed to such simulators. What is -3 MAPP doing to support early nuclear learning? According to the World Nuclear Association, nuclear capacity is increasing steadily, with over 60 reactors under construction around the world. Most reactors on order or planned are in Asia. A few years ago, L-3 MAPPS researched Nuclear New Build (NNB) markets and realized that the profile of nuclear students was quite different than in the 1970s and 1980s when the last large wave of nuclear power plants was constructed. There are many young people entering the industry who will one day be the experts and even the leaders in the industry. But their learning needs are different. They are what is referred to as “digital natives,” people that grew up extensively using technology like the Internet, computers and mobile devices. The training materials used in the industry to train newcomers on generic fundamentals, systems training and operations is well-established and accredited. Nevertheless, we felt that the digital natives would benefit from more immersive technology that they could use to complement traditional training both in the classroom and outside the classroom.

Seeing is understanding. Interacting helps remember. These are the principles for the highest student retention rates—experiential learning. These are also the principles that guided us as we set out to develop technology to support nuclear candidates’ development needs. We introduced a number of technologies. I will speak of two of them here. In collaboration with 3-D visualization technology firm TriLink Systems, L-3 MAPPS introduced Learning Modules to augment the generic fundamentals training currently used in today’s curriculums. They are easy-to-use software modules where one can interactively and visually explore how plant components are constructed and how they work. With Learning Modules, colleges and operators can empower students to gain maximum learning value with “hands-on” experience. We believe Learning Modules remove the uncertainty of mentally picturing equipment construction and operation by allowing students to virtually touch it, assemble it, watch it work—in the classroom and on portable student tablets. We went a big step further, too. We knew that the detailed plant models in our operator training simulators could be exploited to improve the understanding of complex phenomena that take place in nuclear power plants. By coupling 3-D visualization with high-fidelity plant models, we launched Learning Simulators. Operator training simulators focus on the procedural aspects of operating nuclear power plants. With Learning Simulators, we released a fully interactive and visual environment designed to facilitate true understanding of NPP behaviours. As we have seen in other nuclear markets, replacing an aging workforce with ualified professionals is always a challenge. How can your technology help alleviate the concerns a utility in Asia may have? In order to train a replacement workforce, we need to ensure that the teaching methods are updated and that we are engaging the new workforce candidates. I spoke of our Learning Modules and Learning Simulators in the context of NNB, but the same applies for existing plants that need to bring on new people. The principles of “seeing is understanding” and “interacting helps remember” are equally applicable for existing plants. In fact, I would argue that these principles don’t only apply to digital natives; they apply to everyone. In an aging workforce, we can accept that the trainers are also aging. The technology we are offering is essentially

capturing a lot of that knowledge and making it available for deployment and redeployment. I wouldn’t say that we can replace expert instructors, but I believe we are taking steps in the right direction to help them do their jobs in imparting knowledge to new learners. What would you say are the common misconceptions about the use of simulation in the nuclear and power industry? I see many people, even some industry insiders, who think that simulators are only needed for operator training and their sole value is to support the training function once the plant is built and in operation. This misconception probably comes from the 1970s and 1980s when limited and expensive computing power limited the abilities of the simulations. Today, computing power is inexpensive and abundant and has allowed us to make very realistic, extensive plant simulations. We can include every pump, pipe, microprocessor and wire in our simulations nowadays. The simplifications of the past are no longer necessary. That is why a number of our customers also use our simulations to assist in validating new plant designs, verifying and validating the design and behaviour of digital control systems, and validating human factors before committing changes to plant control rooms, to name a few. an you e plain why a utility should choose Orchid over other products in the market? As mentioned, it was a first-of-a-kind environment and over the years we have continued to invest in technology development to keep it ahead of competing products; many of the continued improvements are driven by our customers through customer forums. Moreover, the Orchid® simulation environment is fully visual and focused on making the user experience easy. We do not expect end users to become programming experts, but we do expect them to manage their simulations in an intuitive, easy-to-visualize graphical environment. Another added bonus is that with our technology and training, our customers are able to easily evolve their plant simulations with their plants as needed. In most cases, our customers are highly self-sufficient because Orchid® is that easy to use and because L-3 MAPPS has made it possible. But we didn’t do it alone. We have been so fortunate to partner with very discerning customers that knew what they wanted, were willing to go beyond the traditional buyer role and challenge us to do our best.

Orchid is a trademark of L-3 Communications MAPPS Inc. All other products are trademarks of their respective companies.

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South East Asia

DREAM OR R Serpong in Banten province remains on track to start construction next year. Beyond South-east Asia, China, seeking to move away from coal power, is set to build 40 nuclear power plants over the next five years. This is on top of the 30 it now has in operation, and the 24 under construction, according to the World Nuclear Association. South Korea has 25 nuclear reactors providing about one-third of its electricity, while, more ominously, North Korea recently conducted nuclear and missile tests, prompting tough sanctions against the country. Dr Michael Malley of the Naval

hen the Government said earlier this year that it was reviewing whether to lift curbs on food imports from Japan’s Fukushima prefecture, it prompted a ripple of concern among the public, who wondered if it was too soon. A radiation leak at the Fukushima nuclear power plant, which resulted from an earthquake in 2011, put fears of nuclear fallout hitting the region on the consciousness of Singaporeans for the first time. Until then, nuclear power and its risks were a distant concept. But lesser known is the fact that for decades, Singapore has lived alongside neighbors with small-scale research nuclear reactors, including Indonesia (three), Thailand (one), Vietnam (one) and Malaysia (one). The Republic, along with New Zealand, is the only Pacific Rim country with no research reactor, according to the World Nuclear Association, which promotes nuclear power. Indeed, the appetite for nuclear power in South-east Asia is growing, unlike in North America and Europe. Vietnam and Indonesia have both engaged international partners with the knowhow to work on their first power-

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generating nuclear plants. But how prepared are countries and the region as a whole for the possibility that something could go wrong? In recent years, experts have noted weaknesses within the countries, such as the lack of nuclear expertise and protocol that do not meet International Atomic Energy Agency (IAEA) standards. Regionally, there is also not enough nuclear accident response capabilities and information sharing on the matter. WHERE THE RISKS LIE Among the key nuclear developments in South-east Asia is the Ninh Thuan 1 plant in Vietnam, which is expected to have a capacity of around 4,000 megawatts, meeting 3 to 4 per cent of the country’s total electricity demand. Vietnam is working with Russia’s state nuclear firm on the plant, which will start construction in 2020. It is also working with a Japanese consortium to develop a second nuclear plant. In Indonesia, plans to operate four nuclear power plants by 2025 with a total capacity of 6 gigawatts have been shelved in the wake of public objection, but its plans for its first experimental 10-megawatt nuclear power plant in

a Nuclear,

REALITY? Postgraduate School and Dr Tanya Ogilvie-White of the University of Canterbury noted that at a 2011 international conference on nuclear

challenges in South-east Asia, participants, especially those from outside the region, felt South-east Asian governments “have not done enough to prepare for worst-case scenarios”. What could lead to these worst-case scenarios? Protecting nuclear material and facilities from terrorists is a key concern. Indeed, it was the impetus for United States President Barack Obama to initiate the Nuclear Security Summit (NSS) in 2009, the fourth edition of which begins today, with Prime Minister Lee Hsien Loong among those in

attendance. Other concerns are whether nuclear power plants are being built, maintained and secured in a way that meets international standards. Are nuclear-related materials transported properly? How many shipments pass through the region annually? Have there been any breach of rules and has action been taken against those who do not observe the rules? Is nuclear waste being safely disposed of? In 2014, a report by the Centre for Non-Traditional Security (NTS) Studies at the S Rajaratnam School of International Studies at Nanyang Technological University highlighted the risks in Vietnam, Indonesia, and Malaysia’s nuclear ambitions. For example, Vietnam’s emergency protocol still did not conform to the IAEA’s standards, and it did not have a comprehensive nuclear power plant security plan as well as a management plan for spent fuel. Indonesia is relatively better prepared, as it has been mulling nuclear power since 1956. The country has in place two agencies overseeing the

implementation and regulation of nuclear power and inter-agency groups to coordinate disaster response. The IAEA also conducted an Integrated Nuclear Infrastructure Review in Indonesia in 2009, and while it was not made public, the Indonesian government has said it confirms the country’s extensive preparatory work. But the NTS Centre researchers noted objections, such as “distrust towards the government’s capability in dealing with nuclear emergencies, financial constraints, Indonesia’s vulnerability to natural disasters, and corrupt practices”. Nuclear power has not been ruled out by Malaysia, but there has been “serious concerns over the safe disposal of nuclear waste and the independence and impartiality of the Malaysian regulatory body, Atomic Energy Licensing Board”, noted the researchers. An investigation at a radioactive waste management facility in Kuantan run by Australian mining firm Lynas found that the storage system there was inadequate and risked exposing workers to high radiation, among other lapses. “The future implications this has for nuclear power plant development and the safe disposal of nuclear waste are significant,” they said. While the intentions behind nuclear development in the region may be peaceful, the implications of inadequate implementation and management

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are anything but. South-east Asia is prone to natural disasters. Indeed, this has been central to objections from Indonesians in areas where proposed reactors are to be built (in Central Java and in the Bangka-Belitung Province). Anti-nuclear groups have noted that the country, sitting on the Pacific Ring of Fire, is vulnerable to earthquakes, tsunamis and volcanic eruptions, even in areas the Indonesian government said are relatively safe from tectonic activity. WHAT NEXT? That nuclear power and its risks occupy a very low rung on the average Singaporean’s list of priorities has not escaped the Government. Although the Government decided not to pursue nuclear power as an option for the foreseeable future after a feasibility study, Prime Minister Lee Hsien Loong has stressed the importance of nuclear security and safety to Singapore. “We are small and densely-populated. Any nuclear or radiological incident would be a major disaster, perhaps an existential one,” he said at the last NSS in 2014. That year, Singapore amended the Radiation Protection Act so that it can accede to the Convention on the Physical Protection of Nuclear Material and its 2005 amendments. The National Research Foundation started a program to train 100 nuclear experts in the next decade. These

experts would, for example, be able to study the impact of radiation on Singapore in the event of a nuclear incident, so that the authorities can roll out precautionary measures. Experts would also be able to detect and trace radioactive materials that could be used to make weapons. So far, only nine experts have been selected in the last two years. Mr Lee has attended all four editions of the NSS, underscoring the importance of nuclear security to the Republic. While North Korea and its nuclear tests could dominate the discussions over the next few days, countries, including Singapore, will be delivering progress reports on nuclear security. Also on the table are possible actions the international community can take to strengthen the global security architecture. With this NSS being the last — in tandem with the end of Mr Obama’s term as President — countries are expected to adopt a set of documents on the road ahead to key security initiatives. The fallout from a nuclear disaster does not stop at international boundaries. On a regional level, countries can come together and adopt a common position to promote nuclear safety and nonproliferation. And as the Government ramps up the training of experts, the ordinary Singaporean will benefit from understanding the implications of nuclear power booming so close to our shores.

Substations that can hide in a city ? Certainly.

Bustling urban centers need efficient and reliable electricity, but have little room to accommodate large electrical installations. ABBâ&#x20AC;&#x2122;s Gas Insulated Switchgear (GIS) technology can shrink the size of an electrical substation by as much as 70 percent, so it can be located in the midst of cities and in other space-restricted areas, sometimes even indoors or underground, minimizing environmental impact. We offer a range of products, systems and services for power generation, transmission and distribution to help increase power capacity, enhance grid reliability, improve energy efficiency and lower environmental impact. With a 125 year heritage of technology innovation ABB continues to shape the grid of the future. For more information please visit us at www.abb.com

ABB Pte Ltd Power Grids Division 2 Ayer Rajah Crescent 139935 Singapore Tel: 6776 5711 www.abb.com

Feature - Standby Power Asia Air quality control systems are required for a healthy indoor and outdoor environment. These systems make it possible for industries to comply with national pollution control standards for clean air, thereby improving productivity and lowering health related absences. The air quality control systems market is witnessing a huge demand across the Asia-Pacific because of the stringent regulations for industrial emission. Here we speak with market leader Ametek Land and discuss some of the implications in the Air quality of power facilities in Asia

Derek STUART o a Prod ct Manager o AMETE Land co stion and environ enta onitoring rod cts ased in t e A

Welcome to PiMagazine Asia, can you tell us a bit about how you made your way into this industry? I started my career as an atmospheric physicist, developing novel methods for measuring trace species in the stratosphere using tunable diode lasers (TDLs). It has been gratifying to see TDL technology mature to the point where it is now used routinely for industrial process controls. That led me into emissions measurements, and I spent nearly 20 years developing stack gas analysers for Land Instruments. After Land became part of AMETEK in 2006, I had an opportunity to move into Product Management. I am still enjoying that role, which involved a lot of communication among our customers, engineers and sales channels. Pollution control and instrumentation is an integral part of a power facility. How does the correct technology help to increase profitability and ensure local emission control standards are met? The key requirement is to select the most appropriate equipment and the right partner for the job. Air pollution measurements should be a trouble-free as possible: they are designed to demonstrate that the user is complying with his legal requirements so reliability and good technical support are of the highest importance. It is also important to choose the appropriate technology. A basic opacity monitor might allow an older plant to meet its obligations for PM (particulate matter) measurements at a modest cost, but a new-build plant with tight emissions limits would require a more sensitive measurement from a high-end transmissometer or laser scattering instrument.

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Have you seen any other changes in the way power facilities have approached their operations? There is an increasing interest in safety and plant protection. With widespread use of sub-bituminous coal across parts of Asia, spontaneous combustion is a significant problem at many sites. A number of customers are using our Millwatch and HotSpotIR systems to detect early-stage combustion in pulverizers and on conveyors. these allow the user to detect the early stages of combustion so that preventative action can be taken to prevent a damaging fire or explosion. What projects are you most proud of in Asia? Over the past two years, we have been working with our distributor in Taiwan to supply emissions monitoring systems for the three new supercritical-pressure power generation units at LinKou Power Plant. The project required us to supply CO and O2 analyzers for combustion efficiency measurements as well as opacity monitors for PM measurements.

development in emission monitoring in the last few years and why? The development of laser light-scattering monitors allows continuous PM measurements to be made at much lower levels than can be achieved using a traditional opacity monitor. As a consequence, regulators are able to set much more stringent emission limits. This is especially important in large urban areas where PM concentrations are causing severe health problems for the local population.

Asia is growing faster than pretty much any other region in the world. What countries in particular are you focussing on and why? China is our single most important market in Asia. In addition to the sheer rate of growth in the power sector, increasingly stringent air pollution regulations mean that many sites have to upgrade their emissions measuring instrumentation. What are the biggest challenges you face in the Asian market and could you e plain what you are doing to overcome them? The sheer size of the market makes it difficult for a company based in Europe or the USA to provide adequate coverage. That is why it is so important to have capable local distributors who are able to offer on-site service and technical support. Land staff make regular visits to the area to ensure that the local distributors have the training and knowledge they need to support our customers. What has been the most important

What can regional governments do to ensure the further development of the emission market? A consistent regulatory environment, along with clear rules and specifications, gives confidence to both manufacturers and to the regulated community. There is no point in setting stringent standards for pollution emissions unless there is an adequate framework for monitoring compliance. The ability to tailor your products to a specific customer application is very important and many companies do not have this fle ibility. an you give our readers an e ample of how you

have tailored your solution to meet a customer re uirement and the benefits they received on receiving your solution? AMETEK Land has a dedicated team in our Engineered Solutions (ES) section whose full-time task is to produce customized products tailored to customersâ&#x20AC;&#x2122; needs. For example, we had a customer who required all parts to be corrosion-resistant because the equipment was to be installed at a coastal location. The ES team reviewed all of the materials used, identified the components that could be at risk and sourced alternatives. I would like to thank you for your time today, it s been a great e perience and an interview I m sure our readers will love. efore we sign off here, can you summarise why any company would benefit from working with you? AMETEK Land has over 60 yearsâ&#x20AC;&#x2122; experience in the design and manufacture of precision measuring instruments. Our technical expertise, combined with strong local support throughout Asia, allows us to fulfil our customersâ&#x20AC;&#x2122; requirements for cost-effective emissions measurements.

Is China’s UHV Network working?

tilization of China’s ultra-high-voltage (UHV) power transmission lines, designed to send excess electricity in remote interior regions to coastal centers battling worsening air pollution, has been lower than expected, according to analysts. The high-capacity UHV lines, more efficient and economic for long-distance transmission, are expected to cost stateowned State Grid Corporation more than 600 billion Yuan (HK$711 billion) to build until 2020. But they’ve also turned out to be no panacea for the nation’s renewable power distribution bottlenecks. “Utilization of the UHV lines remains below expectations [due to] many factors … such as the performance of connected generation plants, constraints in the local power grids, [hydro power resource] conditions, as well as [power] demand conditions,” Hu Xinmin, senior manager at Hong Kong-based industry consultancy The Lantau Group, said in a report. “As such, efficiently coordinated planning

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of grid and generation [capacity], under changing economic and regulatory conditions, will become even more important to ensure better utilization of fuel, environmental and capital resources.” Citing figures from State Grid, which has a power distribution monopoly in all but five southern regions in Mainland China, he noted its first three UHV lines, commissioned between 2009 and 2012, had reached capacity utilization of only 21 per cent to 56 per cent in 2014. China is the first nation with the stated ambition of using UHV power lines as the “core” to inter-connect its regional power grid networks into a “strong and smart” national network, a strategy championed by State Grid around a decade ago. To meet this original 2020 target, China would need to more than double its UHV development effort, which seems unlikely given the challenges. In 2009, State Grid officials said it had “fully grasped the core technology” of UHV power distribution, and planned to plough some 600 billion Yuan into UHV

lines by 2020. In 2013, it outlined an eight-year plan to build 37 UHV lines totaling 89,000km by 2020, of which 11 would be built by the end of last year, and 19 by the end of next year. By the end of last year, only eight lines with a total length of 11,900km were in operation. “To meet this original 2020 target, China would need to more than double its UHV development effort, which seems unlikely given the challenges,” Hu said. He said the slower-than-planned progress was due to a likely divergence in views between the National Energy Administration (NEA), the sector’s regulator, and State Grid on the desired degree of inter-connection between regional grid networks, slowing power demand growth, planning delays and system integration challenges. Judging from the pattern of project approvals, he said the NEA seemed to prefer strengthening regional grids at this stage rather than inter-connecting regional

sparsely-populated northern regions have also been dashed. Ip said on average only 10 per cent to 20 per cent of the transmission capacity of UHV lines could be used to send wind and solar power, since it was intermittent in nature and required the mixing of conventional electricity, like coal-fired power, whose output was more stable throughout the day. He noted even the UHV line linking Hami in Xinjiang and Zhengzhou in Henan province, which sourced as much as 40 per cent of input from renewable energy, had suffered from low utilization since it was commissioned in early 2014, and it was under repair and maintenance half of last year due to damage caused by huge load fluctuations. UHV lines would play a big role in helping tackle the nation’s air pollution problem, according to Liu Zhenya, the chairman of state-owned State Grid that has monopoly distribution in all but five southern regions in China, who said they would send excess renewable en-

grids as originally planned by State Grid, due to reliability risks. “State Grid’s vision to synchronize regional power grids is almost certainly not being taken seriously,” he said, adding the United States also had “virtually no prospect” of fully integrating regional grids since costs outweighed benefits. Dennis Ip, head of utilities and renewables research at Daiwa Capital Markets, says that rapid deceleration in China’s power demand growth and rising power generation overcapacity had also played a role in delaying the progress of UHV lines expansion, with local governments in consumption centers cutting power imports to protect local power plant operators suffering from falling utilization. Wind and solar farm operators’ hopes that the construction of UHV lines would bring significant relief to the distribution bottlenecks they face in sending power out from wind- and solar energy-rich but

ergy from northern and western regions to consumption centres in central and coastal regions so that some old coal-fired plants in the latter can be retired. “UHV power lines are at a peak approval and construction tendering stage, with a number of lines expected to be approved in this year’s second-half,” said Sinolink Securities analyst Zhang Shuai in a report. “State Grid Corporation is also pushing for global grid inter-connection with UHV lines … this will spur development of UHV

and smart grid technology.” State Grid has an eight-year plan to spend some 600 billion yuan (HK$717.43 billion) to build 37 UHV lines by 2020. By the end of last year, only eight were in operation. After delays related to technical and safety issues , approvals for new lines were accelerated in 2014 amid growing air pollution problems in major cities, so that a total of 16 lines are expected to be under construction this year and next year, according to a Daiwa Capital Markets report. The average investment cost of each line is estimated by Daiwa at 20 to 25 billion yuan. The overall power grid equipment production industry is fragmented and competitive. Only a few have the expertise to make UHV products and the key players are subsidiaries of State Grid. They include Pingdingshan-based Henan Pinggao Electric which focuses on making switchgears, Nanjing-based Nari Technology which produces grid operation automation equipment, and Xuchang, Henan province-based XJ Electric which makes grid protection and surveillance systems. Shanghai-listed Henan Pinggao shares have fallen 47.8 per cent from their level in early June last year, while those of Shenzhenlisted XJ have plunged 61.8 per cent and Shanghai-listed Nari have tumbled 55.2 per cent. By contrast, the Shanghai Composite Index has retreated 45.3 per cent in the same period, while the Shenzhen Composite Index has slumped 42.7 per cent. XJ Electric, which is 41 per cent-owned by State Grid, is a leader in direct current UHV. The company has a dominant market share in the converter valve and converter transformer segment, according to Daiwa. The company’s shares are trading at 11.2 times this year’s earnings and 8.2 times for 2017, according to estimates by Sinolink. As one of only three qualified suppliers in China, Pinggao has about a 40 per cent share of the “gas-insulated switchgear” market for alternating current UHV transmission lines. This business segment accounted for 28 per cent of its total sales last year, according to Zheshang Securities analyst Zheng Dandan. Switchgears, which combines electrical disconnect switches and circuit breakers, control and protect electrical equipment.

Feature - Standby Power Asia

N VENU President and Head, Po er rids Division, o t Asia N Venu is currently the President and Head of ABBâ&#x20AC;&#x2122;s Power Grids division for South Asia. He is a member of the Power Grids Global Management Team. A graduate in electrical engineering from National Institute of Technology (NIT), Warangal, Venu began his career in 1988 as a management trainee with English Electric (now GEC Alstom) in Chennai. He joined ABB in 1995, and his 20 year tenure has seen him play key roles in diverse aspects of the business. His career at ABB has included several leadership positions in sales, marketing, key account management, business development, channel management, customer relations and operations. In most recent roles, he led the erstwhile Power Systems Division as the Local Division Manager and prior to this was President of Sales and Marketing for the country. He is an active member of various professional bodies such as Confederation of Indian Industry and IEEMA (Indian Electrical and Electronics Manufacturers Association). He also serves on the Infrastructure Committee of the CII, and was an Executive Committee member representing the Southern Region for CIIâ&#x20AC;&#x2122;s power conference. A constant learner, he has undergone various training programs conducted by reputed institutions, both local and international. These include a general management course from Indian Institute of Management (IIM), Ahmedabad, leadership development from Indian School of Business (ISB), Hyderabad and a senior leadership development programme from International Institute of Management Development (IMD), Switzerland.

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What do you feel are the current challenges in Asia? The challenges in various markets across Asia are distinctly different. Unlike Europe or North America, power systems across the region are less homogeneous. While the major challenge in some markets is in providing access to electricity, others are challenged by reliability, integration of renewables, and tariff management. However, economic growth trends in the region are positive, and the power ecosystem reflects the need to respond to growth drivers. In most of the countries, grids across several markets had to deal with fast growth in demand and rapidly adapt to the associated challenges. Correspondingly, many of these grids needed to evolve and adopt new technologies to handle the fast growth in generation. This holds true for most of the developing markets like Vietnam, Indonesia, Philippines and Myanmar as well as the Indian subcontinent. This scenario calls for sufficient investments in strengthening the transmission and distribution infrastructure. With increasing inter play between the macro economies of the region, power grids also need to grow to be more connected both within the country and with grids of other neighbouring countries. There is also an increasing focus of renewables generation across the region, which would need to be factored in to leverage optimum power efficiency while reaping environmental benefits. Overall, the region also has to deal with high aggregate transmission and distribution losses which will need to be addressed through technology as well as regulations. What can be done to improve Transmission Distribution in Asia While looking at the power ecosystem, improvements can be planned taking a comprehensive view of all areas - in terms of regulations, policies as well as technology adoption across several markets. While unbundling of the power sector in some markets (e.g. Myanmar) could ensure more efficient management of the sub sectors (i.e. generation, transmission and distribution sectors), privatisation and improvement in regulations could attract further investments. imilar to the global scenario, power grids in the region are also witnessing or set to witness massive penetration of renewables.

Hence there is an urgent need to ensure robustness of the system by deploying sufficient power stability solutions such as le ible Alternating urrent Transmission ystems A T . Interconnection of regional grids is another evolving area that can enable better utilization of renewables and cross border energy sharing. For e.g. Indiaâ&#x20AC;&#x2122;s increasing power demand makes it critically important to look for alternate resources. Higher regional cooperation could help address at least a part of this ever increasing demand. Similarly, a fully integrated South East Asia power grid (ASEAN) could enhance electricity trade across borders. Some bilateral interconnections (e.g. Singapore and Malaysia) are already under operation while others are under consideration. Long distance bulk power transmission technologies like High Voltage Direct Current (HVDC) will play a key role in enabling such interconnections. Opportunities also exist for smart grid technologies to bring tangible and significant value to both utilities and consumers in the near term. As industrial and commercial users become more IT-savvy, the need to shift from the conventional grid to a smarter grid becomes more prominent. While the grid system in Asia varies from country to country, it is still a major challenge for utilities to get their grids ready for the next phase of a smarter, automated and more sustainable grid in response to changing regulatory, lifestyle and environment needs. Increasing integration of Information and Operational technologies (IT/OT) and enterprise software solutions are also driving better asset management and providing early warning of asset malfunctions as well as better asset health management solutions. In light of this, where do you think Asia is heading in particular? Several developing countries have ambitious plans of large scale electrification for providing access to electricity. However, Asia is at an advantageous position as it can learn not only from developments in North America and Europe but also from the rapid grid modernisation of some parts within the continent. Every country has its own unique requirements for technologies to take the grid to the next level of evolution as well respond to its own business environment. What has changed over

the past decade is the urgency, leading to shrinking timelines. In terms of technology, two key areas that will demand significant attention are the integration of renewables and ensuring reliable and quality power. Large scale renewable integration would also lead to adoption of large scale energy storage. Asian grids will also look into distributed generation and Microgrids supplement their efforts to ensure system reliability, improve access to electricity as well as power quality. What projects are you most proud of in Asia and why? We have executed several projects that highlight pioneering technologies, as well as help at the grassroot level. The ±800

kV North-East Agra UHVDC project link in India is one of the large projects that we have partly commissioned recently. This is the second multi-terminal HVDC link being built by ABB in the world. We are also currently executing several Air and Gas insulated substation orders for major utilities like SP PowerGrid, Power Grid Corporation of India etc. Along with utilities, we have executed projects for several prominent industrial and infrastructure clients across the region. Some of the prominent ones under execution includes: integrated electrical and control solution for Istroenergo Group a.s. (IEG) in Philippines and electrical systems for Petronas in Malaysia among several others. However, it is not just the large projects that we are proud of. Our initiatives in Myanmar help bring electricity in the form of solar power to several villages in rural areas of Myanmar. This iterates

the fact that ABB’s capability echoes the needs of the current environment, as well as shapes the grid of the future. Tell us about some of the challenges faced and how you overcame them? Market needs and customers’ expectations are constantly changing. Timelines are shrinking rapidly while the focus on quality remains paramount. While market challenges are expected to remain, we continue to focus on delivering differentiated customer value by leveraging our technology strengths, the breadth of our portfolio, our proven global track record and our domain expertise. Quality and competitiveness remain key focus areas where we constantly strive for greater excellence on an ongoing basis.

How do you feel local governments can help the situation in Asia? The development of any sector depends, to a great extent, on the regulatory framework and the market mechanisms. A proactive and prudent approach to maintaining a clear framework, which is equitable and balanced, would be critical to ensure longer term sustainability and growth of the power sector with due attention to transmission and distribution to support generation capacity addition and emerging trends like renewables. Creating the right investment climate and maintaining financial viability with sufficient attractiveness for private sector participation is also important. Tariff structures should also reflect this need. Inter country and regional collaboration is another aspect where the government can play a key role. For grid interconnec-

tion, as important as the infrastructure would be the political agreement to allow trade in electric power between these grids. What makes you competitive in the region? Constant innovation and technology differentiation has always been ABB’s key strength and we continue to strive for that. ABB has always been a pioneer in technological developments with many firsts and records in the sector and our continuous focus has been to introduce latest concepts in Asia as well. Further, localization remains a key focus area for us. We have a wide footprint across the region and this allows us to be competitive and cater to a major portion of the market. Our longstanding presence means that we have a large installed base in the region. We have local presence in all the major Asian countries with dedicated localized service teams to immediately address customer requirements. We can also tap into our vast global and regional experiences as well as global sourcing to drive competitiveness. rom a development perspective, what are your plans for 2016 Given the focus on infrastructure development, and industrialization, we are optimistic when it comes to Asia. Challenges and opportunities differ across different markets. While there are over 300 million people in India who have no access to electricity today, the focus in Indonesia is primarily to bring power to its thousands of islands. We also envisage opportunities in developing markets like Vietnam, Philippines, Myanmar and Bangladesh. We will continue to focus on our growth actions across the region. While we are present across the value chain in several segments, we also focus on forming alliances and leveraging the potential of other stakeholders to support us in developing new markets and the technologies. We are already leading the way in developing and introducing concepts like Microgrids and focusing on emerging areas like Energy storage. Apart from products and systems, we are also a leading supplier of Enterprise software and services in the region and we will continue to cater to utility, industry, infrastructure and transportation customers. In terms of client experience, our focus is on developing lasting relationships with our customers.

What can be done to improve Transmission Distribution in Asia Asia has the ability today to leap frog on technology and use best in class technology to establish a robust T&D backbone to be more productive compared to other region. This requires a long term view to invest on latest technology, select high quality equipment and perform proper service supported by a localized product and service operation.

Jack WEN Asia Region enera Manager rid o tions E Jack Wen, a GE officer, currently leads the Asia region of Grid Solutions, a GE and Alstom joint venture in GE’s Energy Connections business. Prior to this role Jack served as Global Commercial Leader for GE Digital Energy beginning in 2014 where he was responsible for leading the development of Digital Energy’s sales organization and strengthening Digital Energy’s global commercial presence. Prior to his current role, Jack was named as the Sales and Marketing Vice President for GE Energy Management in 2012, leading global commercial activity. GE Energy Management is a $7 billion business that develops advanced technology solutions to help solve the efficiency challenges faced by industries that generate, distribute and consume power around the world. Jack joined GE in 1998 as part of GE’s Asia Leadership Development Program in Shanghai, China. During the program, he held roles in China, the U.S. and Japan. In 2001, Jack was named Sales leader for Power Generation in China. In that role, he led a cross-functional team that launched a gas turbine campaign which helped to establish GE and its partners as industry leaders in China. In 2005, Jack was named Sales Operations Leader for GE’s Energy Services business in Atlanta, Georgia, heading a global commercial organization in support of this multibillion dollar business. In 2008, Jack was promoted to Vice President and China Country Executive for GE Energy. With responsibility for leading all Energy teams in China, Jack built a strong operating footprint for the business, facilitated stronger customer relationships, and set up partnership platforms. Prior to joining GE Jack was area sales manager at Alstom T&D in Shanghai and an electrical engineer at Shanghai Kaineng Company. Jack holds Masters Degrees in electrical engineering from Shanghai Jiao Tong University in China and in business administration from the China Europe International Business School. Jack and his wife Hairong have three children and live in Hong Kong.

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What do you feel are the current challenges in Asia? On project development side, the challenges remains around solid PPA (power purchase agreement) and strong facilitation on issues such as land acquisition and permits; on technology side, it is about life cycle economic evaluation and performance consideration to enable new technology deployment and the best supplier to win.

In light of this, where do you think Asia is heading in particular? We have seen great improvements in this regard over recent years, especially in countries like Vietnam & Indonesia. It’s a large task on hand for these governments, and they are working through these issues. Asia will accomplish electrification rates of above 90 or even 95% by 2030, but how it will be done is very important... I come back to my point on using quality products and solutions, using latest technology to minimize environmental impact to have long term benefits – both economic and social – in every sense. What projects are you most proud of in Asia and why? We have done a lot in Asia, for example… - In Korea, we have built a JV with KEPCO to localize

HVDC technology and its production in country to drive economic growth, shorten project cycle time and providing better service to the customer. In New Zealand, we partnered with Transpower to deploy a Demand response system to empower the consumers to use energy more efficiently. In Singapore we partnered with the Economic Development Board and the National Technical University to codevelop a micro-grid solution which will integrate renewable energies like solar & tidal using our automation technologies most efficiently. In Philippines, we have now deployed a fully digital substation in Manila which is less complex to wire up, saves costs & space and is more reliable. In Indonesia, we work with our power business to deploy power plant in 6 month to power over 3 million homes.

Tell us about some of the challenges faced and how you overcame them? - Building a strong mind set of ‘customer first’… this is a simple

challenge but making it a day to day principle proves to be difficult in every company, it starts with building a common goal between customer and GE - People… we are taking projects across Asia, having good people is the critical to our success, this involve hiring, training and development, and building critical mass in critical market. - Partnership… GE is a great company with lot of capabilities, but we still need partner to solve problems for our customers, this means we will need to work more with system integrators, our suppliers, EPC partners

space; we have great technology and a service network to deliver many great references, which give comfort to our customers for large complex projects. Capability… We can bring high quality equipment and system as supplier, we can help to build industry and source for global needs, we can partner with local company for their global expansion and we can facilitate financing for their project development. Localization… we structure our business around customers in the region to provide timely support to our customers.

How do you feel local governments can help the situation in Asia? 1. The key is open, fair, complaint competition & governance. 2. And a focus on life cycle cost.

rom a development perspective, what are your plans for 2016 Asia will continue to grow driven by consumption and renewable penetration. We have ambitious plans for 2016 centering around - 1. staying close our customer,2. building more partnership and 3. localizing more capability in the region.

What makes you competitive in the region? Expertise & credibility… GE is probably the largest industrial company in the world today and has over 200 years of experience in the Energy

Our people, technology and initiatives on digital will provide a solid foundation for us to grow in Asia.

UPCOMING EVENTS or t e Energ

siness in Asia

13 Apr - 13 Apr Utility Technology Seminar Berlin, , Germany Organisers: OTN Systems Email: conference@otnsystems.com URL: www.otnsystems.com 13 Apr - 14 Apr Power and Electricity World Asia 2016 Pullman Central Park, Jakarta, Indonesia, Central Park, Jl. Letjen. S. Parman Kav. 28, Tanjung Duren Selatan, Grogol, Petamburan, Jakarta Barat, DKI Jakarta 11470, Jakarta, , Indonesia Organisers: Mildred Ang Email: mildred.ang@terrapinn.com Phone: 65 6322 2769 URL: www.terrapinn.com 14 Apr - 14 Apr Utility Technology Seminar â&#x20AC;&#x153;Guaranteed security & dependability for critical communicationsâ&#x20AC;? Hamburg, , Germany Organisers: OTN Systems Email: conference@otnsystems.com URL: www.otnsystems.com 18 Apr - 20 Apr 3rd Annual Rotating Equipment, Reliability and Maintenance Conference 2016 Sofitel Al Khobar the Corniche, Al Khobar, , Saudi Arabia Organisers: Fleming Email: manohar.bharwani@fleming.events URL: fleming.events 19 Apr - 19 Apr The Nuclear Decommissioning Forum One Whitehall Place, London, , United Kingdom Organisers: Marketforce Email: jmcguire@marketforce.eu.com URL: www.marketforce.eu.com 20 Apr - 20 Apr The Nuclear New Build Forum One Whitehall Place, London, , United Kingdom Organisers: Marketforce Email: jmcguire@marketforce.eu.com URL: www.marketforce.eu.com 25 Apr - 26 Apr Smart Water Systems Holiday Inn Kensington Forum, London, United Kingdom Organisers: SMi Group Email: agibbons@smi-online.co.uk Phone: +44 (0) 20 7827 6156 URL: www.smart-water-systems.com 26 Apr - 26 Apr Masterclass and Site Visit: Small Satellites Delivering MilSatCom Guildford, , United Kingdom Organisers: SMi Group Email: hdegracia@smi-online.co.uk URL: www.smi-online.co.uk

27 Apr - 28 Apr 5th Mozambique Mining, Oil & Gas and Energy Conference and Exhibition International Conference Centre, Maputo, Mozambique Organisers: AME Trade Ltd. Email: mmec@ametrade.org URL: www.mozmec.com May 2016

09 May - 13 May Gas/LNG Contracts: Structures, Pricing & Negotiations Kuala Lumpur, , Malaysia Organisers: Infocus International URL: www.infocusinternational.com 10 May - 12 May Engineering, Procurement and Construction (EPC) Contracts for Energy Industry Kuala Lumpur, , Malaysia Organisers: Infocus International URL: www.infocusinternational.com 10 May - 10 May Human Capital & Talent Management for Public Sectors Cape Town, West Cape, , South Africa Organisers: Infocus International URL: www.infocusinternational.com 10 May - 11 May REGATEC 2016 Scandic Triangeln, Malmo, Scania , , Sweden Organisers: Renewtec AB Email: info@regatec.org URL: www.regatec.org 17 May - 18 May O&M and Lifecycle Management Strategies for CCGT Power Plants 2016 Crowne Plaza Hotel, Birmingham, West Midlands, , United Kingdom Organisers: T.A.Cook Conferences Email: info@tacook.com URL: uk.tacook.com 17 May - 19 May Power and Electricity World Philippines 2016 SMX Convention Center, Seashell Ln, Pasay, 1300 Metro, Manila, , Philippines Organisers: Mildred Ang Email: mildred.ang@terrapinn.com Phone: 65 6322 2769 URL: www.terrapinn.com 25 May - 26 May 34th West Coast Energy Management Congress 2016 Washington State Convention Center, Halls 4D,E,F, Seattle, United States of America Organisers: Association of Energy Engineers Email: ashley@aeecenter.org URL: www.energyevent.com

HIMOINSA FAR EAST 101 Thomson Road, #15-05 | United Square | Singapore 307591 Tel.: +65 6265 10 11 | Fax: +65 6265 11 41