Pimagazine Asia Vol 8 Issue 2

A S I A’ S

LEADING

POWER

REPORT

VOLUME 8 ISSUE 2

BUILDING THE CASE FOR DISTRIBUTED GENERATION l Fate of Nuclear in Asia l Will Hydro threaten Peace? l Green Hydrogen Energy Storage

l Deepak Garg CEO Smart

Utility Systems

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Editors Note The Asia & Pacific region is at a turning point with its energy trajectory. The polluting energy solutions that have fuelled growth of the region over the past few decades are no longer compatible with its sustainable development aspirations.

Of course, in transitioning to a new era of sustainable energy, policy makers across the region face many complex decisions.

We have covered these issues in many past editions over the years. Without sounding like a broken record, supplies need to be affordable, reliable and fill the gap that still leaves over half a billion across the region without access to electricity.

It is astounding that even today this amount of people simply does not have the luxury of turning on a light, plugging in a mobile phone or listening to the radio. I had an interesting conversation with my 8 year old when we recently had a power cut due to a failed transformer. My son, like myself have always grown up in a World where we have the luxury of electricity, something we are all guilty of taking for granted. Whilst we sat in the dark with candles, having uninterrupted conversation as there was no TV or video games, my son asked, “Dad is this what it was like in the olden days?” When I replied “Yes, but its still like this for lots of people all over the World, they just don’t have electricity” My son, being 8 and used to the luxury of a western lifestyle with constant power was shocked, “But why” he asked “surely everyone should have a light bulb, its not

complicated, we can go to space and talk online, but people don’t have electric?, that’s wrong! He then said something that melted me and reminded me of the simplicity and honesty of children yet to be polluted by the World around them; “ When I grow up I want to be an inventor and invent electricity so everyone can have it for free” When you sit and talk with a child, the simplistic view is wonderful, if only the whole population seen things the same way, who knows, maybe one day my son will be an interviewee in Pimagazine Asia with his latest invention? Where there is a will, there is a way!

Well, I hope you enjoy this edition, it’s rammed with great interviews, and 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.

Sean Stinchcombe Editor

Power Insider Media Limited, Smithys Cottage, 64 Ryecroft Road, Frampton Cotterell, Bristol, England, BS36 2HW. T: +65 31586864, M: +44 (0) 7778946927, E: sean@pimagazine-asia.com, W: www.pimagazine-asia.com Power Insider media limited are the publishers of pimagazine asia. Pimagazine asia is published bi monthly and distributed to senior decision makers throughout Asia and the Pacific. The publishers do not sponsor or otherwise support any substance or service advertised in this publication; nor is the publisher responsible for the accuracy of any statement in this publication.

Copyright: the entire content of this publication in print and digitally is protected by copyright, full details of which are available from the publisher. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electric, mechanical, photocopying, recording or otherwise without the prior written permission of the copy right owner.

S I A’ AS

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VOLUME 8 ISSUE

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ear in Asia threaten Peace? ogen Energy Stor age CEO Smart Utility Systems

l Will Hydro

l Green Hydr

l Deepak Garg

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2

Contents Inside This Issue 14 18

FEATURES

Asia needs more energy solutions New Kohler G-Drive Diesel Engine Range Delivers World-Class Power 20 PLDT to have 10 data centers by 2017 22 Adoption of variable speed drives yields increased plant efficiency, reliability and availability 24 Building a case for distributed generation in Asia 28 Deepak Garg • CEO is responsible for the innovation, vision, strategy and leadership of SUS 32 Southeast Asia Looks to SmallScale LNG to Meet Power Needs 34 The fate of nuclear power in Vietnam 38 Hydrogen is more than just energy storage, renewable hydrogen is the solution towards an energy transition 42 Will Hydro threaten peace in Myanmar

4 | POWER INSIDER VOLUME 8 ISSUE 2

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COMPANY NEWS

ENGIE BUILDS INDONESIA’S FIRST GEOTHERMAL PLANT With construction expected to commence this year in the Solok Selatan region in West Sumatra province, the project will provide employment opportunities to 1,200 people and support local businesses during the 30-month construction period.

Indonesia has around 40 percent of the world’s geothermal reserves, estimated at 28,000 MW, making it an important resource for the country to achieve its commitments to reduce carbon emissions by 29 percent by 2030.

Geothermal energy is a renewable, nonintermittent and eco-friendly source of energy that is both efficient and economical, using the heat coming from deep underground either for heat, power generation or even air-conditioning.

ENGIE is a leading producer and supplier in Europe of geothermal energy for heating and cooling of residential or commercial facilities, using various sources from deep hot aquifers to marine geothermal, through shallow geothermal coupled with underground thermal energy storage.

Jan Flachet, chief executive cfficer, ENGIE Asia-Pacific said: “With 40 percent of the world’s geothermal reserves in Indonesia, the potential of this energy source is tremendous. Our partnership in the Muara Laboh geothermal project is fully in line with our Group’s strategy to be a leader of the energy transition in the world, notably focusing on renewable energies.”

ENGIE is part of the PT Supreme Energy Muara Laboh with the Japanese trading and investment company Sumitomo Corporation and the Indonesian geothermal power developer, PT Supreme Energy. The consortium was awarded the tender for the 220 MW Muara Laboh geothermal project concession in 2010.

The US$ 440 Million financing agreement was signed by PT Supreme Energy

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Muara Laboh consortium with the Japan Bank for International Cooperation, the Asian Development Bank and a set of commercial banks under a guarantee from Nippon Export and Investment Insurance, to support clean energy development in Indonesia.

ENGIE has been present in Indonesia for over 60 years. Muara Laboh is the first renewable project of the Group in the country. The Group employees are committed to contributing to the sustainable development of one of the

world’s fastest-growing economies, through increasing energy supply with natural gas and renewable power (geothermal, solar, biogas), as well as improving energy efficiency and providing solutions to the challenges of rapid urbanization.

SIEMENS PRINT TURBINE BLADES Siemens has achieved a breakthrough by finishing its first full load engine tests for gas turbine blades completely produced using Additive Manufacturing (AM) technology. The company successfully validated multiple AM printed turbine blades with a conventional blade design at full engine conditions. This

means the components were tested at 13,000 revolutions per minute and temperatures beyond 1,250 degrees Celsius. Furthermore, Siemens tested a new blade design with a completely revised and improved internal cooling geometry manufactured using the AM technology. The project team used blades manufactured at its 3D printing facility at Materials Solutions, the newly acquired company in Worcester, UK. Materials Solutions specializes in high performance parts for high temperature applications in turbomachinery where accuracy, surface finish and the materials quality is critical to ensure operational performance of the parts in service. The tests were conducted at the Siemens testing facility in the industrial gas turbine factory in Lincoln, UK. 3D printing Siemens finished its first full load engine tests for conventional and completely new designed gas turbine blades produced using Additive Manufacturing technology.

“This is a breakthrough success for the use of Additive Manufacturing in the power generation field, which is one of the most challenging applications for

this technology,” said Willi Meixner, CEO of the Siemens Power and Gas Division.

“Additive Manufacturing is one of our main pillars in our digitalization strategy.

The successful tests were the result of a dedicated international project team with contributions from Siemens engineers in Finspång, Lincoln and Berlin together with experts from Materials Solutions.

In just 18 months they completed the entire chain from component design and AM material development to new methods for lifing simulations and quality controls. With our combined know-how in 3D printing, we will continue to drive the technological development and application in this field,” added Meixner.

The blades were installed in a Siemens SGT-400 industrial gas turbine with

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a capacity of 13 megawatts (MW). The AM turbine blades are made out of a powder of high performing polycrystalline nickel superalloy, allowing them to endure high pressure, hot temperatures and the rotational forces of the turbine’s high speed operation. At full load each of these turbine blades is travelling at over 1,600 km/h, carrying 11 tons or equivalent to a fully loaded London bus, is surrounded by gas at 1,250 °C and cooled by air at over 400 °C. The advanced blade design tested in Lincoln provides improved cooling features that can increase overall efficiency of the Siemens gas turbines.

Additive Manufacturing is a process that builds parts layer-by-layer from sliced CAD models to form solid objects.

Also known as ‘3D printing’ it especially provides benefits in rapid prototyping.

“This exciting technology is changing the way we manufacture by reducing the lead time for prototype development up to 90 percent,” said Meixner. “Siemens is a pioneer in Additive Manufacturing.

We can accelerate the development of new gas turbine designs with an increased efficiency and availability and can bring these advancements faster to our customers. This new flexibility in manufacturing also allows Siemens to develop closer to the customer’s requirements and also to provide spare parts on demand.”

Siemens has a broad knowledge in essential areas like materials sciences, automation, manufacturing and process know how and is thus in a great position to shape the future in the 3D printing industry. The successful test of the advanced blade design is the next step

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in order to use the full potential of AM. Siemens is developing unique gas turbine designs which are only possible with AM and extends its serial production for printed turbine equipment. With an experience of more than 100 years in the energy market, Siemens converts the new design possibilities to specific solutions for its customers.

Siemens extensively uses AM technology for rapid prototyping and has already introduced serial production solutions for components in the gas turbines’ compressor and combustion system.

In February 2016 Siemens opened a new production facility for 3D printed components in Finspång, Sweden. The first 3D printed component for a Siemens heavy-duty gas turbine is in commercial operation since July 2016.

For further press material and videos on Additive Manufacturing, please see www. siemens.com/press/3D-printing For further information on Division Power

and Gas, please see www.siemens.com/ about/power-gas PHOENIX REGAIN CONTROL OF APAC OPERATIONS Phoenix Solar AG (ISIN DE000A0BVU93), a leading international photovoltaic system integrator listed on the official market (Prime Standard) of the Frankfurt Stock Exchange, has acquired the outstanding minority shares in its Singapore based subsidiary Phoenix Solar Pte Ltd. They were held by a group of former directors of this enterprise. After the transaction Phoenix Solar AG will own 100 per cent of the company. The parties agreed not to disclose further details.

Furthermore, this means that Phoenix Solar now has 100 per cent ownership of all its key operating companies around the world.

Phoenix Solar Pte Ltd in Singapore was among the first international subsidiaries established by Phoenix Solar AG in 2006.

It holds a leading position on the local Singapore market for commercial and industrial photovoltaic rooftop solutions.

It also serves as the parent company of Phoenix Solar Sdn Bhd, Kuala Lumpur, Malaysia, and Phoenix Solar Philippines Inc., Manila, Philippines, and oversees the activities in the entire Asia/Pacific region of the Phoenix Solar Group in both the commercial and industrial rooftop as well as utility scale ground-mounted segments for solar PV systems. With a newly established senior management team of experienced industry professionals, the Asia Pacific Region is poised for renewed growth in 2017 and beyond, also addressing promising new local markets such as Australia, Vietnam and Indonesia.

Tim P. Ryan, CEO of Phoenix Solar AG,

stated: “We are a truly global company.

With this move, we underscore our commitment to sustainable, profitable growth in Asia/Pacific. We have a solid base in several markets, which we will leverage for further expansion. We also see healthy demand in the Region for our services, based on our reputation as a provider of quality commercial solar plants, on-time and on-budget.

Taking full ownership of our regional subsidiary will enable us to gain further momentum.”

EQUIS FUND AWARD FOR TOLO 1 Equis Asia Fund II has awarded the engineering, procurement and construction (EPC) and operations and maintenance (O&M) contracts for its Indonesian wind farm, Tolo I to a consortium featuring Siemens Wind Power, PT Siemens Indonesia and PT Pembangunan Perumahan (Persero).

The contracts were given through Equis’ Indonesian platform Redaya Energi and PT Energi Bayu Jeneponto.

Located in Jeneponto in the Indonesian province of South Sulawesi, the Tolo I

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Wind Farm will comprise 20 direct drive wind turbines from Siemes. The turbines will transmit power into PLN’s Jeneponto substation through a highvoltage transmission line.

Equis CEO David Russell said: “Indonesia is set for a period of rapid, sustained growth in energy demand, and the Indonesian government has set sensible targets for renewable energy to satisfy a large share of this demand.

“Equis is committed to leveraging our experience and expertise in Indonesia to support these government initiatives and to deliver low cost power and jobs for the benefit of local communities.”

Construction on the Tolo I Wind Farm is set to begin later in the year, while the commercial operations at the site are expected to start in 2018.

According to Equis Asia, the wind farm will contribute to Indonesian President Joko Widodo’s 35,000MW of surplus capacity by 2019 program.

Besides, it would also play a part in Indonesia’s renewable energy target of 23%.

Presently, Equis is finalising the development of several other renewable energy projects in the country with a targeted equity investment of over $500m through the next two years.

Earlier in the month, Equis, the Singapore based independent renewable energy developer and investor, announced two large scale solar projects in Australia with a combined generation capacity of 200MW. VESTAS REORGANIZE ASIAN OPERATIONS Vestas has split its Asian sales unit in two, with one focusing on China and Mongolia, and the other to serve the rest of the Asian-Pacific region. As a result of the split, Vestas’ senior vice president of Asia-Pacific and China Chris Beaufait has left the company.

“Chris has successfully led our daily operations in [Asia-Pacific] since April 2014 and grown the region to a point where creating two new [sales units] is a natural next step. I would like to thank him for his dedication and contribution to the positive development of region,” said chief sales officer Juan Araluce.

The two new offices will begin operating from 1 April 2017, Vestas

said. The China-focused office will be based in Beijing and led by Kebao Yang.

Yang was previously chairman and general manager at the Chinese subsidiary of construction and mining equipment manufacturer Caterpillar.

A new head of the second office has yet to be appointed but it will be based in Singapore, according to Vestas.

According to figures from the Chinese Wind Energy Association (CWEA), Vestas was the largest non-domestic OEM in China in 2016, installing 510MW just ahead of nearest foreign rival Gamesa (498MW).

Vestas increased its market share from 0.9% in 2015, to 2.2% last year, CWEA’s figures stated, becoming China’s 12th largest supplier.

standards-compliant IPv6 network, has been met with a positive response from the market.”

The smart grid solutions market in the Asia Pacific region saw significant developments in 2015 with an increase in smart metering, demand response and grid automation investments in Japan and South Korea. Smart grid testbeds and smart metering trials grew in Southeast Asia and Australasia.

Ever-increasing migration toward urban centers and pressure to better manage resources are main drivers for these developments.

“Itron is proud to be recognized as the Asia Pacific Smart Grid Solutions

technology. The endeavor aims to enable the production of inexpensive, high volume production of hydrogen, thereby making it more accessible to those interested in using fuel cells to generate electricity. Once completed, the new system will be able to produce enough hydrogen in one hour to power two vehicles equipped with fuel cells.

Toshiba has managed to create an inexpensive hydrogen production solution The new system will rely on an alkaline solution to act as the electrolyte needed to trigger hydrogen producing chemical reactions. This means that the new system will not make use of precious

Company of the Year. With our OpenWay Riva solution, we are helping our customers in the Asia Pacific region and around the world unlock significant new value from their distribution system operations and customer service. The solution delivers new value in distribution system efficiency, reliability, safety and new services, allowing our customers to manage energy and water more resourcefully,” said Paul Nelsen, Itron vice president for Electricity, Asia Pacific.

and expensive materials, allowing the hydrogen fuel production process to be more financially viable. Using alkaline electrolysis has allowed Toshiba to scale up the system without the system itself becoming too expensive.

Fuel cells are beginning to gain more support Hydrogen Fuel Production – Toshiba and JapanToshiba has begun to show strong interest in hydrogen fuel, noting that it has begun to prove its value in terms of energy production.

The company notes that the growing popularity of stationary fuel cells and fuel cell vehicles are evidence of the increasing viability of fuel cell systems. Hydrogen fuel production has long been a challenge facing the widespread adoption of fuel cells, however, as conventional production methods have relied heavily on fossilfuels and are considered somewhat expensive. Developing an inexpensive means to generate hydrogen has

ITRON SMART GRID SOLUTION COMPANY OF THE YEAR Itron, Inc. (NASDAQ: ITRI), a worldleading technology and services company dedicated to the resourceful use of energy and water, announced today that it has been honored as the 2016 Asia Pacific Smart Grid Solutions Company of the Year by Frost & Sullivan for its comprehensive smart grid solutions. The award was presented during Australian Utility Week and recognizes the company’s exemplary performance in 2015 as a result of its ability to address unmet customer needs and exceed their expectations with Itron’s OpenWay Riva™ IoT solution.

“Itron is a leader in technology and services, offering solutions to utilities across the globe that help them be more resourceful with energy and water. The company has demonstrated an ability to meet the emerging needs of the Asia Pacific smart grid solutions market with its OpenWay Riva solution,” said Avanthika Satheesh, industry analyst for energy and environment at Frost & Sullivan.

“Based on the company’s strong overall performance during the year, Itron rightly deserves the 2016 Frost & Sullivan Asia Pacific Smart Grid Solutions Company of the Year.”

With the OpenWay Riva solution, Itron is bringing its global experience and capabilities to the Asia Pacific’s smart grid solutions sector, addressing unmet needs including diversion detection and renewable integration. According to the report, “the powerful distributed computing platform, coupled with its innovative adaptive communications technology running on an open,

WILL JAPAN BE ASIA’S HYDROGEN LEADER? Toshiba to develop new hydrogen production system for inexpensive fuel and energy.

Toshiba Corporation has revealed plans to launch Japan’s largest hydrogen fuel production system, relying on new alkaline water electrolysis

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become an important priority for many organizations interested in using fuel cells to generate electrical power.

Hydrogen economy may be taking form in many parts of the world In the coming years, Toshiba plans to become more involved in the hydrogen sector. The company hopes to help establish a hydrogen economy, one in which hydrogen fuel cells are used as primary energy systems. These systems would be used in many sectors, especially in the residential space where they can generate electrical

archipelago.

The contract was secured through a highly competitive open book bid that involves passing through stringent quality checks. CG was selected for this prestigious project due to its successful track record in Indonesia, backed by a global recognition of its technical expertise in manufacturing and supplying state-of-the-art products and solutions. The scope of the project includes site survey, design, manufacture, transportation and installation of the transformers. The

power and heat for homeowners.

Toshiba is expected to hold a position in the global hydrogen market thanks to its development of hydrogen fuel production systems.

order falls under a project funded by PT PLN to enhance the performance of the Indonesian transmission grid, which is critical to PLN’s 35 GW Fast Track Programme.

This order also reinforces the existing strong relationship between CG and PT PLN. Since 1993 CG has excelled in meeting power transformer needs of PT PLN locally and this seventh consecutive order in the open book series, reinforces the strong relationships that CG builds in all markets that it serves. CG’s High Voltage Switchgear manufacturing plant that will come in production later this year, further endorses CG’s commitment to play a vital role in the growing South East Asian market.

Commenting on this prestigious win, Avantha Group Company CG’s Managing Director & CEO, Mr. K. N. Neelkant said: “We thank PT PLN for this significant order that reaffirms their trust in CG’s manufacturing expertise. At CG we have consistently built on our reputation as a quality provider of indigenously built products that meet both global standards,

AVANTHA IN PLN WIN Critical equipment for a project to improve the Indonesian transmission grid Transformers to be manufactured in CG’s world-class facility in Indonesia To be installed at more than 100 substations and power plants all over Indonesia Avantha Group Company CG has won a significant order of USD 105 million (INR 720 crore approx.) from PT PLN, the state-owned electricity company of Indonesia, to manufacture and install Power Transformers ranging from 30 MVA, 70/20kV to 500 MVA, 500/150kV. CG’s power transformers will be installed across PT PLN’s transmission network, spread over multiple substations and power plants in Java, Sumatra, Kalimantan, Sulawesi and the Papua islands of the Indonesian

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as well as local conditions. Our technological edge makes us well positioned to support utilities in their network strengthening goals and we look forward to many more similar collaborative efforts”.

SOLAR POWER CABLE IS VIABLE FOR INDONESIA A private consultant believes an undersea cable to export solar power from the North West to Indonesia is financially viable even with its likely $6 billion to $10 billion construction cost.

Geoff James, a consultant hired by Pilbara Development Commission, said the ambitious subsea cable project would establish an underwater link to transport solar power from the Pilbara and Kimberley to Java in Indonesia.

He will deliver a pre-feasibility study to the commission in January as to whether it would be possible to build a 2000km underwater cable to supply the Indonesian market with renewable energy from Australia’s North West.

Mr James said he believed the project was financially viable and would be possible within the decade.

“We have been assisted by project partners who have advised us that it is a ‘technical stretch’ but it is quite feasible,” he said.

“The technology does exist and it has been trialled at various lengths, various scales, various depths across the globe.

They are developing the technology very rapidly.”

The project would require a solar power panel farm with a radius of between 10km and 15km to be built in the Pilbara and Kimberley, and a highvoltage direct cable-transmission route stretching from the Pilbara through the Kimberley and on to Java.

Mr James said at least 2000km of the cable would stretch underwater.

Mr James said the subsea element was being developed in consultation with Basslink and a silent project partner.

Mr James said the most significant hurdle for the project was the trade relationship with Indonesia.

“This could be our key pillar of our relationship with Indonesia, a symbol of mutual benefit, the ability to improve its clean energy and meet its very ambitious growth targets,” he said.

“The main challenges are the relationships and the business models to make this work.”

ASIA NEEDS MORE ENERGY SOLUTIONS T

he Asia-Pacific region is at a turning point in its energy trajectory. The energy solutions that have fuelled growth in the region over the past few decades are no longer compatible with the sustainable development aspirations of our nations and their people. In transitioning to a new era of sustainable energy, policymakers across the region face complex decisions. Supplies must be secure and affordable, and they must fill the energy access gap which leaves half a billion people across the region without access to electricity.

At the same time, mitigating the local impacts of energy generation and use will be vital in resolving problems such as the air

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pollution choking our cities and the global consequences of greenhouse gas emissions causing climate change.

Solutions exist, but only through regional cooperation and integration can Asia and the Pacific transition to sustainable energy in time to meet the ambitious 2030 Agenda for Sustainable Development and its Goals.Nick Cross Countries have committed to moving towards a more diverse and low carbon energy mix through the 2030 Agenda and the Paris Agreement on Climate Change. However, fossil fuels stubbornly remain a major part of the regional energy mix, accounting for three-quarters of electricity generation. Unless the region’s countries work together to accelerate the incorporation of sustainable energy into their strategies, businessas-usual approaches will result in a continuation of fossil fuel use and

associated impacts.

While some countries suffer from energy shortages which limit their economic and social development, others enjoy energy surpluses, such as hydropower and natural gas.

Trading these resources through new cross-border power grids, drawing on renewable energy when possible, as well as gas pipeline infrastructures, can open up enormous opportunities for both economic growth and decarbonization.

The energy technology renaissance already underway in some countries is playing a vital role in the transition.

New technologies are reducing the cost of clean energy and renewable power. Smart grids and electric vehicles are rapidly gaining market share. Since 2010, the cost of solar power generation has declined 58 percent, with the cost of wind power down by one-third. The International

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Renewable Energy Agency projects cost reductions of 59 percent in solar power and 12 percent in wind power within 10 years, edging below fossil fuel electricity costs in most Asia-Pacific countries. Advances in longdistance power transmission technologies enable the linking of renewable energy resource-rich areas such as the Gobi Desert, Central Asia and far eastern Russia, with distant population centers.

Asia-Pacific has emerged as an engine for clean energy, both as a manufacturing center for renewable energy technologies and as the leading region for deployment, with $160 billion invested in renewables in 2015.

On the demand side, energy efficiency technologies have an important role to play in the energy transition. Better energy efficiency is a key driver in decoupling energy use and GDP growth in many economies. With 15 percent of the world’s electricity consumed by lighting, efficient LED lighting technology, which consumes up to 85 percent less energy, will make substantial savings. Energy storage technologies for vehicles and power applications have also leapt ahead, offering flexibility in power usage and balancing variable electricity generation from renewables. Here again, regional cooperation, technology transfer and south-south collaboration will play a vital role in the transition.

Despite these encouraging developments, the success of the energy transition will require

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sustained commitment at national and regional levels through better policies, incentives and allocation of investments. The inertia of the existing energy sector is considerable, with its long-lived assets and entrenched institutional arrangements. Regional cooperation, through sharing of policy experiences, building capacity and mobilizing finance can play a significant role in assisting countries to implement their own energy sector reforms and capture the many cobenefits. The importance of regional energy cooperation is evident in the transboundary nature of many prominent energy challenges – improving regional energy security, managing air pollution and establishing cross-border energy infrastructure.

ASEAN, South Asian and Central Asian countries as well as China, Russia and Mongolia are already embracing crossborder energy connectivity. Initiatives such as the CASA 1000 and the ASEAN Power Grid will allow low carbon energy from gas, hydropower, solar

or wind to be traded across borders. Longterm regional dialogue is required to further develop these complex and infrastructureintensive initiatives.

Connecting countries, finding regional solutions and promoting regional standards and guidelines has been at the core of the work of the United Nations Economic and Social Commission for Asia and the Pacific for the past 70 years. We recognize the need for regional energy cooperation, and with the support of our member States established an intergovernmental Committee on Energy that will meet for the first time in Bangkok, January 17 to 19. Through the Committee, countries will help to map out key regional energy solutions for the region such as accelerating uptake of renewables and energy efficiency, establishing crossborder energy connectivity, promoting regional approaches to energy security, and providing modern energy access throughout the region to ensure a sustainable energy future for all. Through regional cooperation and integration I am confident that the countries of AsiaPacific region can transform their energy trajectories to better serve their people, the region and the planet.

Dr. Shamshad Akhtar is a UnderSecretary-General of the United Nations (UN) and the Executive Secretary of the Economic and Social Commission for Asia and the Pacific (ESCAP).

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NEW KOHLER G-DRIVE DIESEL ENGINE RANGE DELIVERS WORLD-CLASS POWER Kohler and Liebherr collaborate to design highly-efficient engines for new industrial generator line

An entirely new line of G-Drive engines was developed to exclusively power the KD Series of KOHLER diesel industrial generators, which launched in APAC this November. The compact and powerful new engines, which were first seen last month at a global launch event for the new generators, were codeveloped by Kohler and Liebherr. They deliver highly efficient and dependable performance and feature a modular design for optimal serviceability.

“A global team of engineers came together and worked tirelessly to design and develop these new large diesel engines, which will only be available on the just-launched line of KOHLER industrial generators,” said Tom Cromwell, group president-power for Kohler.

“We’re pleased to be integrating a premium new engine into these generators that combines a compact footprint with unrivaled power density.”

In total, there are six engines within the new line, which deliver between 709 and 3608 kWm Standby Power at 50 Hz and between 891 and 4250 kWm Standby Power at 60 Hz. The new line is divided into two series – the 135 series and the 175 series – both containing three engines. The 135 series includes the KD27V12, a 12-cylinder model with 135 mm bore and 27 liters displacement; the KD36V16, a 16-cylinder model with 135 mm bore and 36 liters displacement; and the KD45V20, a 20-cylinder model with 135 mm bore and 45 liters displacement. The 175 series also includes three engines: the KD62V12, a 12-cylinder engine with 175 mm bore and 62.4 liters displacement; the KD83V16, a 16-cylinder model with 175 mm bore and 82.72 liters displacement; and the KD103V20,

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a 20-cyliner model with 175 mm bore and 103.40 liters displacement.

Both the 135 and 175 series of engines incorporate a modular design with common components, allowing for efficient servicing, reduced spare parts inventory, and more streamlined technician training. Other key features include: An innovative fuel system by Liebherr with common rail injection, which reaches pressures up to 2200 bar to deliver better atomization of fuel and improved fuel consumption; This precisely-metered fuel injection system also minimizes engine particulates, reduces emissions, and helps the new engines to meet global emission regulations in all markets; An advanced Engine Control Unit (ECU), which is supported by KODIA diagnostic software for intuitive monitoring; A unique turbocharger system, which optimizes airflow to the cylinders for maximum power, optimal combustion, and reduced fuel consumption; And a low-noise combustion system with optimized pressure, which works in combination with a rigid engine block, crankcase and sub-frame to significantly reduce noise and vibration.

“These feature-rich engines were pur-

posefully designed to deliver unequaled performance and ultimate reliability in the field,” Cromwell continued. “Together with Liebherr, we carefully test each component and engine under rigorous operating conditions and utilize an advanced quality management system to monitor every step of the development process. These procedures were put into place to ensure the highest level of

engine quality and dependability.”

Kohler and Liebherr initiated contact in 2008 and have since performed more than 50,000 hours of durability testing on these engines. Combined, the partners have more than 125 years of experience in the development of engines and generator sets. The new G-Drive engines will be available exclusively on KOHLER generators across the APAC region.

“We will manufacture these engines in our brand new facility in Colmar, France as well as an extended facility in Bulle, Switzerland. The two excellent production sites use the most sophisticated manufacturing tools and assembly processes for large engines,” said Gebhard Schwarz, managing director of Liebherr-Component Technologies AG. “We very much appreciate the teamwork with Kohler and look forward to the great results we anticipate achieving through this collaboration.”

Kohler Launches New Large Diesel Industrial Generator Line in APAC Company’s KD Series includes nodes between 800 kVA and 4200 kVA for emergency and prime applications Kohler has launched an all-new range of large diesel industrial generators into the Asia-Pacific market. The range was first introduced at a special event in Strasbourg, France, last month. The company’s new KD Series includes generator sets in nodes between 800 kVA and 4200 kVA, which are powered by an entirely new line of G-Drive engines, also introduced at the event. The generators will be available throughout the region under the KOHLER brand and are designed to deliver extreme durability and ultimate reliability in a variety of emergency and prime applications. Targeted industries include: data centers, healthcare, water treatment, oil and gas, telecommunications, mining, and more.

“This is an exciting and transformation-

al product launch,” said Tom Cromwell, group president-power for Kohler.

“After a very collaborative and thorough worldwide development process, we’re very pleased to be rolling out this new line of generators in APAC. We expect strong response to these advanced new gensets that will offer beneficial cost savings and unrivaled performance to our customers in this region.”

Users of the new KD Series generators will find cost savings because the line delivers the best fuel consumption at more nodes than any other competitor between 800 kW and 2500 kW. The new generators are designed to meet global emissions regulations and are highly customizable to match an end user’s specific requirements. Multiple options are available to ensure optimal performance for the most demanding applications.

Products are designed for high ambient temperature conditions. Thanks to high technology regulation and monitoring control systems on each component, the KD series offers a very high power quality and best transient response in compliance with the most stringent regulations standards.

“These generators are powered by our new state-of-the-art G-Drive engines, which were developed to provide outstanding power density and complete dependability in the field,” Cromwell continued. “Plus, because these are fully-integrated Kohler generators, we’ll be able to stand behind this line in an elevated manner, which includes a comprehensive three-year warranty.”

When service is needed, Kohler has a region-wide dealer and distribution infrastructure offering 24/7 parts availability. Distributor technicians are factory-trained to provide fast and

accurate assistance and have expertise in power specifications, equipment integration, and more. For more information, visit www.KDseries.com.

About Liebherr Founded in 1949, Liebherr is not only one of the world’s largest manufacturers of construction machinery, but also an expert and market leader in many other industries. The company’s eleven divisions cover numerous industry segments, including mining, high-performance cranes, concrete technology, machine tools and automation systems, aerospace and transportation systems, domestic appliances, and hotels. The components division comprises 20 product lines from the areas of mechanical, hydraulic and electrical drive system and control technology, which are produced in ten production sites worldwide. Diesel engines were added to the product portfolio in 1984. For additional information, please visit www. liebherr.com.

About Kohler Power A global force in power solutions since

1920, Kohler is committed to reliable, intelligent products, purposeful engineering and responsive after-sale support. Kohler’s acquisition of SDMO in 2005 created one of the world’s largest manufacturers of industrial generators. The companies have a combined 150 years of experience in industrial power and now benefit from global R&D, manufacturing, sales, service, and distribution integration. For additional information, please visit www.kohlerpower.com.

About Kohler Founded in 1873 and headquartered in Kohler, Wis. Kohler Co. is one of America’s oldest and largest privately held companies. With more than 50 manufacturing locations worldwide, Kohler is a global leader in the manufacture of engines and power systems; kitchen and bath products; premier furniture, cabinetry and tile; and owner/operator of two of the world’s finest five-star hospitality and golf resort destinations in Kohler and St Andrews, Scotland. For more details, please visit KOHLER.com.

PLDT TO HAVE 10 DATA CENTERS BY 2017

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eading telecoms and digital services provider PLDT has stepped up its roll out of data centers nationwide and will have a total of 10 data centers with unmatched capacity of over 9,000 racks by the end of this year.

PLDT currently operates six data centers and will open four more until 2017. It will soon open two new VITRO Data Centers located in the Makati central business district and Clark special economic zone, and plans to put up its first data center in Mindanao to be built in Davao, while its data center in Cebu will be expanded.

“The explosion of digital technologies and platforms is changing the way we live and work. Enterprises and consumers can only fully experience and benefit from the digital economy if the country has a solid foundation for its digital infrastructure. Thus, the PLDT Group continues to invest heavily in building this foundation to support a data-driven future,” said PLDT EVP and ePLDT President and CEO Eric R. Alberto.

In its network of VITRO Data Centers, PLDT digital enterprise enabler ePLDT operates data centers located in

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Pasig, Subic, and Cebu that serve large enterprises, particularly banking and financial services, business process outsourcing, and online gaming firms.

Meanwhile, ePLDT unit IP Converge (IPC) operates three more data center facilities located in Makati, Bonifacio Global City, and its biggest in Sucat, Parañaque, that primarily serve small and medium enterprises (SMEs).

Data centers are critical facilities that house digital information of enterprises and government agencies.

These facilities are designed to meet international standards to safeguard crucial information from cybersecurity threats, natural and man-made disasters, and ensure continuous operations.

“Security is a top priority in building data centers. This requires implementing multiple-layers of security, and designing a very sturdy structure. It takes expertise and a lot of resources to keep these facilities secure against a wide range of threats. All these measures are needed to make these facilities suitable for companies that need to outsource their ICT and digital requirements to data centers,” Alberto pointed out.

Aside from multi-level security, other critical components of a data center are telco diversity, precision cooling system, uninterrupted power supply and ample space on solid ground.

This highly available and reliable infrastructure provides enterprise customers with the ideal environment within which they can collocate or host their IT platforms, instead of building complex and expensive structures on their own. The subscription-based leasing scheme also presents a more commercially viable option that allows companies to scale up as IT workload demand increases, without the need for huge capital investments.

«These advantages compel businesses to consider third party data centers such as VITRO, as they expand their IT capacity, refresh their aging data center, or mobilize their cloud-based initiatives,» Alberto said. ePLDT was the first to put up a purposely-built data center in the country with the VITRO Data Center in Pasig which opened in 2000 with a rack capacity of 1,800. By end-2017, the PLDT Group would have invested about P10 billion in data centers nationwide.

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Case Study

Adoption of variable speed plant efficiency, reliability PacificLight Power Singapore-based power generation and electricity retailer, PacificLight, utilizes variable speed drive technology from Siemens to achieve significant energy savings and improve overall plant efficiency.

PacificLight Power (PLP) is a Singaporebased power generator whose power plant stands as one of the most efficient operating units in the Singapore power market today. With an installed electrical generating capacity of 800 megawatts (MW), the state-of-the-art Combined Cycle Gas Turbine (CCGT) power plant is the first in Singapore to be completely fuelled by Liquefied Natural Gas (LNG), and is capable of producing enough electricity to meet the demands of all households in Singapore. In 2015, the plant generated over 9% of Singapore’s total electricity consumption. PacificLight Energy, a subsidiary of PLP supplies electricity to contestable retail customers.

The Need for Greater Efficiency With Singapore’s growing energy needs, which are currently around 46,403 GWh per year, coupled with the increasingly competitive business environment, PLP recognized the need to improve the efficiency of its operations without compromising on reliability, availability and flexibility.

As part of an initiative to reduce onsite electrical consumption, the company elected to modify its two cooling feed

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water pumps. Prior to the modification, the cooling feed water pumps represented over 35% of the total unit onsite auxiliary load and were the highest consumer of internal energy within the CCGT plant The plant was installed with a mechanical throttling valve control for the feed flow, which consumed a considerable amount of energy as the pump motors were running at constant speed. In addition to vary pressure, the upstream high-pressure feed water control valve was throttled to control the flow, which led to severe valve erosion.

expertise in terms of quality in on-site field service personnel, turnaround time, logistical sourcing of critical/contingency spares, remote engineering specialist consultation, and prompt technical update to alert the customer.

Competitive pricing.

Taken the above into account as well as the detailed understanding that Siemens has of PLP’s plant given its role as EPC contractor in the construction of its 2 x 400MW F-class Combined Cycle Gas Turbines that were completed in 2014, Siemens were selected for the project.

Seeking a Partner with Automation Expertise

Siemens Variable Speed Drives: SINAMICS PERFECT HARMONY GH180 Converter System

Automation is at the heart of today’s CCGT performance and PLP wanted an automation partner that was dependable and experienced enough to help the company evolve and embrace system changes in a timely manner. PacificLight needed a partner that had: Relevant experience.

Proven concept – with successfully commissioned products with reliable operating history.

Readily available engineering support

The SINAMICS PERFECT HARMONY GH180 Converter System is a series of cells linked together to create the medium voltage power output of the drive system. The design features an integrated transformer and the ability to scale the drive for a wide range of voltage and output power. The drive offers increased availability due to its modular design and ability to bypass any one cell during operation.

Siemens installed the first unit of variable speed drives at PLP’s power plant in October 2015, and the second unit in January 2016. Because of

ed drives yields increased y and availability the unique multi-cell topology design, the Perfect Harmony converter does not cause any significant stress on the motor insulation or bearings and does not affect the mechanical and electrical integrity of PLP’s feed water pump as it does not require repositioning of the pump and motor. Once installed, the variable speed drives were able to control the speed of the feed water pumps and modulated the discharge pressure optimally according to the load profile, delivering the required flow at much lower motor power.

Apart from supplying the technology, Siemens also contributed valuable insights and advice leading to increased reliability of the installed variable speed drives.

Furthermore Siemens assisted to train PLP’s duty operators and maintenance personnel to ensure maintenance and operations can be conducted smoothly post

installation by the PacificLight team.

Seeing the Results Since the installation of the variable speed drives, PLP has achieved: A significant reduction in onsite power usage of up to 50% for the feed water pumps, thereby improving the generation

output and efficiency of each unit.

An 18% increase in energy savings due to the flexibility of the steam water cycle, which has reduced the differential pressure across the feed water control valve to a value, which was initially not thought possible. The energy savings from this project will allow the company to realize a return on investment in less than 3 years.

Significant improvement in the noise

enclosure of the feed water motor and pump at ambient conditions. The noise level of the feed water pump motor dropped from 89 dBA to 81 dBA, meaning that the plant operator does not have to wear ear plugs to carry out patrol inspections.

Close to 4% decline in temperature, therefore less chiller capacity required.

The technology has also enabled operators to control the speed of the pump and modulate the discharge pressure of the flow according to the load profile – delivering the required flow at a much lower motor power.

“Throughout the years of working with Siemens, the company has consistently proven itself in providing robust technological solutions that are delivered on time, within budget and that often operate even better than expected. Trust, reliability, professionalism and honesty are just some of the values that Siemens has demonstrated, and we appreciate their ability to not only handle the project smoothly from start to finish, but also provide us excellent support at every step in the plant operation. We look forward to many more years of partnership ahead,” Mr. K.K Shivakumara, Chief Operating Officer, PacificLight Power

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BUILDING A CASE FOR DISTRIBUTED GENERATION IN ASIA Rapid economic development, a continuous growth in population, and increased domestic and foreign investments across key industries have all contributed to the remarkable increase in Southeast Asia’s power consumption in recent years. The region’s power demand has risen by 2.5 times in the past 20 years, and by 2040, Southeast Asia’s electricity requirements is likely to triple, for which an additional power generation capacity of approximately 400 GW is said to be required.

In the interest of maintaining a healthy economy and attracting further foreign investment and activities, countries in Southeast Asia have ramped up their spending in infrastructure, including in roads, railways, and residential and commercial facilities. This, among other factors, has caused the region’s power demand to exponentially expand.

And while Southeast Asian governments and allied stakeholders are also funding the building of new or the refurbishment of existing power facilities to support long-term electricity requirements, the current shortage in power supply within the region, not helped by constrained transmission and distribution facilities, is making it challenging to satisfy the immediate electricity demand.

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The observed inadequacy in the current power infrastructure, delays in the construction of permanent power generation facilities, and the heightened need to fulfill the region’s immediate power requirements have prompted Southeast Asian countries to find solutions in distributed power generation.

Distributed Power Generation in Southeast Asia According to global research and consulting firm Frost and Sullivan, the overall installed capacity of the distributed power generation market in Southeast Asia is in the area of 20,450 MW in 2015, which can scale up to 34,747 MW by 2020.

Among the countries in Southeast Asia, the Philippines, Indonesia, Myanmar, Thailand and Vietnam are considered to be high-potential territories for distributed power based on market potential and available resources. For instance, in the Philippines and Indonesia, distributed power generation facilities can rapidly bring power to provinces that are currently not connected to the countries’ national grids due to isolation and remoteness. While in Myanmar, distributed power generation systems can provide electricity to smaller load centers, considering that the country’s overall electrification rate is only 26% and the transmission line losses stands at

25%.Cars are Already Rushing Through the Racetracks Moreover, more than 60% of the land in Thailand, Myanmar and Vietnam are greatly suitable for large-scale solar farms, with substantial irradiance levels between 1,200 kWh/m2/ year and 2,000 kWh/m2/year. Overall, Southeast Asia is touted to have an annual global horizontal irradiance ranging from 1,200 kWh/m2 to 1,800 kWh/m2, making the region highly ideal for developing solar power plants.

The key types of distributed power facilities installed in the region include biomass and waste-to-power, solar photovoltaic, and diesel/HFO/gas temporary rental power plants. Hybrid power plants and micro-grid systems are reportedly also being developed.

Distributed Power System in Southeast Asia (Photo credit: Flickr) Biomass and waste-to-power plants are ideal to supply the captive power needs of small- and medium-scale industries. This type of distributed power system enjoys wide government support across Southeast Asia, and benefits from abundant biomass resources, particularly in Indonesia, the Philippines and Thailand. Solar PV facilities, on the other hand, are gaining ground across the region, thanks to policy support and incentives. Thailand is at the forefront of the solar PV market

A new generation is born

02/2016 - Petergraf

New products.

New technologies.

New service capabilities.

Ansaldo Energia: a global player in the power generation market.

www.ansaldoenergia.com

in Southeast Asia, with an estimated capacity additions of approximately one GW in 2015 alone. Temporary power plants running on diesel or HFO still dominate the rental power segment in Southeast Asia, owing to significant cost-savings, rapid installation, wide availability of fuel, and inherent flexibility of use.

Temporary power plants running on gas are also gaining popularity in the region, in recognition of their cost and environmental benefits. By going for the rental power option, one avoids the need for a significant upfront investment, and the long lead times associated with the construction of permanent power generation facilities.

Industry studies conducted across Southeast Asia reveal that a permanent centralized power plant may take around five to ten years to become fully operational due to the obstacles created by

environmental laws in the region and land acquisition requirements, compounded by overall construction delays. While waiting for the power plants to be constructed and activated, power companies in Southeast Asia, the likes of Meralco and the National Power Corporation in the Philippines, or the Perusahaan Listrik Negara in Indonesia and the Vietnam Electricity Company, will find numerous benefits in setting up temporary rental power plants to meet the immediate power demands of their countries.

Temporary power plants are also scalable, in that its output can be tailored to the existing electricity demand of a community, a city or a province. They can also be installed even in areas with limited power infrastructure, say where substations are absent, because they can be directly connected to the grid having been equipped with the latest protection systems and advanced transformation

and switching equipment. When the permanent power plants are completed, the rental power plants can be easily and completely demobilized, thus leaving no power facility not used or that will require further maintenance and servicing.

As Southeast Asian economies continue to grow in the coming years, the region’s demand for electricity will proportionally increase. While the region’s governments are implementing long-term programs to respond to future power needs, power utilities in Southeast Asia, including Tenaga Nasional in Malaysia or the Electricity Generating Authority of Thailand, can take advantage of the availability of distributed power generation systems, like temporary power plants. Distributed power facilities can help overcome topographical challenges in delivering power, circumvent power transmission and distribution limitations, and boost the electrification rates of various countries in Southeast Asia.

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www.mtuonsiteenergy.com

A Rolls-Royce Power Systems Brand

Which are the industry segments you cater to?

SUS was established in 2009, with a humane vision to address the global challenges of energy and water sustainability.

We cater to the electric, water, gas utilities, helping them redefine their relationship with their customers and optimize the productivity, and efficiency of their workforce, through our cloud based platforms.

We offer platforms with focus in areas of customer engagement, mobile workforce, energy efficiency, water conservation and big data analytics.

Deepak Garg

CEO is responsible for the innovation, vision, strategy and leadership of SUS

Deepak Garg, Founder/CEO is responsible for the innovation, vision, strategy and leadership of SUS, has developed high-powered business and technology teams that have successfully developed leading Energy & Utilities Customer Engagement & Mobile Workforce with Smart iQ™ platforms addressing Energy & Utilities industry key challenges in areas of Customer Outreach, Energy Efficiency, Demand Response, Smart Grid Reliability, Work Efficiency, Field Mobility and Big data. Before SUS, he has held several senior executive positions with Fortune 500 companies focused in Energy & Utilities, during these positions he developed new direct and in-direct markets business solutions with rapid growth adding $500+ millions of dollars in company growth. Deepak has a MS in Computer Science with Bachelor degree in engineering along with executive management from Stanford Graduate Business School & MIT.

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Tell us something about your products and the benefits they offer?

At SUS, we are committed to providing the utility industry with the most comprehensive and best-in-class cloud based (Software-as-a-Service) platforms for the complete value chain the utility, their workforce and the end-customers.

We offer a customizable and configurable platform that seamlessly integrates with the existing back-end systems of utilities that makes it possible for the utilities to get more value out of the utility infrastructure and the resources.

Our suite of solutions leverage technologies such as cloud, mobility, big data and analytics, machine learning and internet of things to facilitate the modernization and digital transformation of utilities. The major solutions are SCM® (Smart Customer Mobile) - SCM® is an award winning customer-engagement web and mobile platform that provides self service capabilities to utility customers and enables real-time, two-way communication between the utility and its customers. SCM® can be easily configured based on utilities current and future requirements. SCM allows utilities to offer to their customers, simple and intuitive ways to track their energy & water consumption; keep them informed about outages & leaks with real- time, map based alerts recommend customized savings programs based on usage analysis It also offers the customers a visibility to their real-time and historical usage data, provides flexible bill payment options, set budget goals, view efficiency ranking; enter and log customer service requests.

SCM® is aimed at delivering effective customer engagement, while enhancing operational efficiency, and reducing complexity and costs of customer services operations.

SMW® (Smart Mobile Workforce) - It is a single integrated mobile workforce engagement platform that helps utilities improve productivity and efficiency of utility employees by providing them job, safety and asset related information in

real-time on any device. It helps utilities in effective decision making by providing analytics for monitoring field worker performance against operational KPIs, it also helps utilities to automate and streamline their business operations allowing workforce to manage, schedule and dispatch work orders in real time. SMW® operates in both online and offline mode allowing field workers to perform their jobs even when temporarily disconnected from the internet.

SiQ (Smart IQ)- SiQ® is an award-winning cloud Analytics SaaS platform with builtin customer and operational analytics. The platform provides real time data analysis on Energy and water use analytics, Peak Load Management, Customer Segmentation, Performance Evaluation, Energy Efficiency and Water Conservation. It also provides a detailed usage profiling that help in customer segmentation to roll out targeted marketing campaigns. Coupled with our customer engagement platform, SCM®, it gives incentives and rebates to customers to motivate them to enroll in demand response, energy efficiency and water conservation programs resulting in improved energy and water use efficiency.

What are some of the challenges faced by the utility industry in Asia?

The challenges faced by the utility sector are mostly global and similar in nature such as ageing infrastructure, lack of skilled workforce, demand supply deficit and a dynamic regulatory set up. However, the Asian utility market, in particular, is quite distinct and diverse primarily due to differences in terms of population,

enable a digital transformation built as a customer-centric business model.

demographics, economic development, energy consumption patterns, customers’ awareness levels about energy usage and energy efficiency, technology adoption rate and the governments’ focus on climate change.

Companies are moving to high alert on range of risk facing the sector. Alongside the leading risks of regulatory uncertainty in the region and difficulties of attracting investment, the utility sector is grappling with issues such as an ever increasing pressure to meet the demand supply deficit, frequent outages and blackouts, frequent system failures due to ageing transmission and distribution network, poor quality and unreliable supply, poor access to electricity leading to low per capita electricity consumptions and a lack of sector reforms that eventually affects the financial viability of the sector.

In addition to this, the expectations of today’s tech-savvy customers from their service providers, including the utilities, are undergoing a paradigm shift. What they want is a holistic and connected relationship with their utilities rather than simply a traditional one based on billing and payment transactions. They expect utilities to provide personalized value added services along with continuously improving the customer service levels.

This further increases the pressure on utilities to reinvent their processes and business models to become customer-centric and yet continue to optimize revenue realization and meet their bottom lines.

However, as the sector seems to open up for improvisation, Asian utilities are looking forward to adopting global best practices and embracing latest technologies to

How can your solutions address the unique challenges of Asia’s utility industry?

The challenges faced by Asia’s Utility Industry can be addressed by technologies such as cloud, mobile, big data analytics, principles of gamification, artificial intelligence and internet of things. Our suite of solutions uses these disruptive technologies to focus on core aspects such as utility-customer relationship, real time data monitoring, outage management, peak load management, demand side management, engaging customers in energy efficiency and water conservation programs, thus leading the utilities on their journey of digital transformation.

Through our suite of solutions, we help provide seamless interaction between utilities and their customers across all mediums and channels including portal, mobile, smartphones, and customer services centers in a cost effective manner. Our platforms provide a 360-degree view of customer interactions, thus, helping utilities align themselves to a customer-centric model while meeting their business objectives. Through our award winning cloud platforms, we facilitate real-time, two-way communication between utility and its customers. This allows utilities to engage, educate and empower their customers to be proactively involved in the in energy efficiency and water conservation

programs. One of the major advantages of our products is that they are fully configurable and modular. We integrate our platforms with the exiting back-end systems of utilities thus helping them save on deployment time, cost and effort. Our competitively products are user friendly, engaging and also something that will completely improve the customer experience through multiple digital channels.

Considering the fast changing technology scenario, what are some of the emerging trends in IT that can help in transformation of utility sector in Asia?

As consumers have embraced this digital mobile shift around the globe, businesses are now focusing on transforming the way they conduct business. The global utilities have embraced the benefits of adopting the technological advancements. They have been collaborating with technology service providers in their journey to modernization and digital transformation.

Mobility is the key today and customers love the choices and convenience provided by the mobile technology. However, utilities have to adopt a holistic approach for digitalization encompassing a mobile first strategy before they are left behind the technology adoption curve.

As the utilities move through this paradigm shift of being electricity provider to being service providers, they are increasing adoption of technologies such as cloud based software, big data analytics,

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•

mobility and Internet of Things. These platforms allow the utilities to analyze an enormous amount of data that is being acquired through smart meters, smart grid, customer engagement platforms that allows utilities to monitor their customers’ usage and with such knowledge, can educate and motivate customers through targeted marketing campaigns.

Digital mobility and associated platforms promise a new era for utilities to engage with their customers. Mobile technologies are impacting utilities by enabling effective customer engagement, improving service levels and delivering critical business insights through big data analytics and the increasing adoption of mobile promise a new era for businesses to engage with their customers.

How smart grids and smart meters will reduce power sector losses and bring in real-time monitoring of power consumption?

Through successful deployment of smart grids & smart meters, the utilities globally have been transforming their services and becoming more reliable as service providers. With new investments in technology, utilities can gather, process the automated meter readings and convert that data into critical business insights that can help in improving the accuracy and information accessibility, making life easier for customers as they can monitor and manage their real-time and historic consumption.

Smart grids & smart meter implementation can also potentially save the costs of manual meter reading and help utilities overcome challenges related to electricity and water theft, inconvenient billing and overcome operational inefficiencies through real-time, two way communication process that enable proactive customer participation, thus, helping the community move towards improving energy efficiency & water conservation.

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Smart meters not only enhance the ease of generating and processing electricity bills and streamlining the collection process through inherent system accuracies; however, they also provide better control on consumers’ electricity consumption by providing real-time consumption data that proves to be a great motivation for consumers to save on electricity bills and thus use electricity judiciously. Thus, some of the benefits of implementation of smart grids and smart meters are

Accuracy in meter reading: Unlike traditional techniques, Smart meters automatically transmit the readings to the connected utility. As a result, consumers are much less likely to be overcharged for their consumption.

• Real time tracking: Consumers can check out their usage patterns and make changes to their consumption accordingly • Automatic outage detection: The real time synchronization with the elec-

tric grid enables less restoration time & improves customer satisfaction.

Better service: Real time notification & communication helps in faster restoration of customers challenges.

Thus, increases customer satisfaction & reliability.

How can Asian utilities benefit by replicating the customer-centric business model being deployed by mature markets in developed economies?

The current electrical power scenario in Asian countries has resorted the need for integration of technology that enables efficient management of resources to enable a continuous and reliable supply of power. Frequent grid failures have become a prominent concern triggering major interruptions in quality and reliability of supply. Moreover, along with the adoption of technology for modernization and digitalization of utilities, they need to emulate their counterparts in developed economies and redefine the traditional relationship with their end consumers for meeting the government regulations about energy efficiency and water conservation mandates.

By deploying and adopting a customercentric approach, utilities can proactively engage with their customers. A customer-

centric approach ensures two-way communication between a utility and its customers.

The real value of this customer engagement is evident from the fact that the customer feels involved and accountable for their consumption patterns. The customers also become more proactive in terms of participation in demand response& energy efficiency programs, peak load shedding etc.

The utilities understand the importance of involving customers in the broader spectrum of energy and water sustainability.

Annual maintenance contractors Installers / EPC companies Inverters Manufacturers of solar cells Materials and equipment Module connectors Monitor, Mounting Systems, Trackers Photovoltaic (PV) modules Project consultants Smart Grid Technologies

Solar cell manufacturers Solar consumer and commercial products Solar energy storage Solar LED’s Solar park developers Solar street and billboard lighting systems Solar water heating, cooling systems and solar pumps Suppliers of raw materials System integrators and assemblers Turnkey solution providers, etc.

SOUTHEAST ASIA LOO LNG TO MEET POWER

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ndonesia’s ambitions to build smallscale liquefied natural gas (LNG) regasification terminals for new power plants scattered across the country will get a boost from new developments in the sector, said infrastructure firm Atlantic, Gulf and Pacific Co. The LNG industry, traditionally based on expensive mega-projects, has up to now struggled to develop small-scale investments that face smaller budgets and different constraints, said Derek Thomas, Atlantic, Gulf and Pacific’s (AG&P’s) director of advanced modular infrastructure, in an interview.

But new solutions and reductions in costs are set to stimulate demand in Southeast Asia for these smaller projects, which are expected to reach a capacity of 2.5 million to 3 million tonnes of LNG per year (mtpa) by 2020, Thomas estimates.

Indonesia’s state utility PLN (Perusahaan Listrik Negara) last year requested for proposals on new power plants in the country and has since shortlisted 11 parties to construct 21 small-scale LNG terminals located on islands in the eastern part of the archipelago.

Indonesia also started up its first 0.3 mtpa mini-LNG terminal, the Benoa LNG terminal in Bali, earlier last year.

“There is a lot of inherent demand in countries like Indonesia, Philippines and Vietnam,” Thomas said, adding that portfolio players that have access to multiple sources of the super-cooled fuel are keen to take on stakes in such projects to secure

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outlets for their supplies.

To help develop the small-scale LNG market, Woodside Chief Executive Peter Coleman said his company is willing to co-invest in floating storage and regasification units, which can cost less than $100

million and be developed quickly.

Interest in the sector has also been sparked by an LNG price slump caused by a supply glut from new U.S. and Australian production. Asian spot prices have fallen by about 65 percent since early 2014, to around $7 per million British thermal units (mmBtu).

“Lower prices are going to facilitate (that small-scale demand), because people who wanted to do this couldn’t afford it at $20

per mmBtu, but are now seeing it as very viable,” Thomas said.

Small-scale projects are becoming more feasible because of falling infrastructure costs and new solutions from firms like AG&P who intend to use modular systems to customize projects.

“It is this idea of using a platform and bringing together the pieces,” Thomas said, referring to the firm’s newly launched small-scale LNG carrier that costs between $10 million and $35 million.

Small-scale LNG projects with capacities of around 0.5 mtpa are estimated to cost $50 million-$100 million, depending on complexity and size, industry sources said.

While the figures may be significantly smaller than the billion-dollar mega LNG projects, upfront financing of these projects for cash-strapped end-users may still be a problem.

To aid in the adoption of LNG, AG&P plans to offer leasing terms on its vessels and infrastructure solutions to customers who may not want to own the equipment, Thomas said.

According to Exxon Mobil Outlook for Energy 2016 report, global demand for natural gas is seen rising by 50 percent from 2014 to 2040, faster than most other fuels and more than twice as fast as oil.

In the same report, Exxon Mobil claims that nearly half the growth in global gas demand through 2040 is expected to be met through inter-regional trade, most of it using LNG. Also, Exxon Mobil predicts that by 2040, Asia Pacific is projected to

OKS TO SMALL-SCALE NEEDS get more than 40 percent of its gas from other regions, and likely will have overtaken Europe as the world’s largest net gas importer.

According to U.S Energy Information Administration (EIA, International Energy Outlook 2016 report), one other hopeful prediction for global natural gas demand is that consumption of natural gas worldwide is projected to increase from 120 trillion cubic feet (Tcf) in 2012 to 203 Tcf in 2040. Furthermore, EIA in the same report predicts that World LNG trade will increase significantly, from about 12 Tcf in 2012 to 29 Tcf in 2040.

As far as South – East Asia (OECD sive economy China future natural gas reforms regarding their domestic gas market, for example, the liberalization of China natural gas market • Political Instability • Fast growing aging population It is evident from the above inputs that future China natural gas demand faces many uncertainties, and accurate predictions cannot be made.

•

Asia and NON-OECD Asia countries) gas future demand EIA in the International Energy Outlook 2016 report predicts that will increase from 22,4 Tcf in 2012 to 63 Tcf in 2040.

South – East Asia LNG market has two categories, the first one is the mature LNG markets and the second one is recent and emerging Asia LNG Markets. Asia LNG mature markets include: • Japan • South Korea and • Taiwan • On the other hand, recent and emerging Asia LNG markets include: • China • India • Singapore • Thailand • Indonesia • Malaysia • Pakistan

• • •

Bangladesh Vietnam According to EIA until 2019 Global Liquefaction capacity will increase by 30 percent.

China LNG Future Imports China LNG future imports will be an essential element for the global LNG suppliers (current and future players) survival.

Recent statements from the International Energy Agency (IEA, 2015 World Energy Outlook report) predicts that China’s future gas demand will be 315 bcm/y for 2020. China future gas demand will determine from these factors: • The future Chinese energy mix with an increasing role of nuclear and renewables and a decreasing role of coal • Future China Economic growth • China next economic model will move or not to a lower carbon-inten-

Conclusion The primary outcomes from our analysis for the Global LNG Industry are: LNG exporters will have small amount of profits for many years National, regional and international policies will affect the future Asia LNG demand significantly Technological improvements and decreasing costs of renewables and storage of energy can challenge significantly the future development of the LNG industry worldwide Europe can be a new destination for Qatar and the USA LNG exports which were estimated to exported to Asia Decreasing both capital and operating costs for the developers of new projects will be a major target LNG exporters will participate in cooperation with LNG buyers in future LNG receiving terminals with general business aim to increase the LNG demand worldwide Changing in the future contracts of the LNG market

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THE FATE OF NUCLEAR VIET PHUONG NGUYEN Viet Phuong Nguyen is a research fellow in the Belfer Center’s International Security Program and the Project on Managing the Atom at the Harvard Kennedy School.

For more than a decade there has been talk of a global “nuclear renaissance,” and until recently Vietnam looked to be part of it, making plans to build nuclear infrastructure and taking the necessary steps to become a member of the international nuclear community. Then, last month, after a year or more of troubling signs, the government officially suspended its nuclear development plans. Only time will tell if this proves to be the right decision.

There are sound arguments on both sides of the debate. Yet those in favor of the government’s reversal should understand, at the very least, that pausing Vietnam’s nuclear development carries significant risks, not only for a successful restart in the future but also for business partnerships and nonproliferation efforts. While the government’s decision is unlikely to be reversed, its negative consequences should be mitigated as much as possible.

If nothing else, Vietnam should ensure it does not lose the gains it has made in recent years, which is something the United States and others have an interest in helping with from afar even though the most important strides must be taken by the Vietnamese themselves.

Ups and downs. Vietnam’s decision to pause its nuclear development comes after years of successful prep work. In 2008, the

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country’s National Assembly passed the Atomic Energy Law, which served as the legal basis for Vietnam’s nuclear power development, and in 2009 it officially gave the green light to the government’s first slated nuclear project, two nuclear plants in the southern coastal province of Ninh Thuan. A year after that, the first batch of Vietnamese students headed for Russia to study at renowned institutions and build their nation’s nuclear workforce. Around the same time, hoping to build 10 nuclear power units by 2030, the government struck deals with Russian and Japanese firms for the Ninh Thuan project and busied itself, both at home and abroad, with other necessary groundwork. In 2014, the US Congress approved a bilateral “123 Agreement,” allowing Vietnam to do business with companies like Westinghouse and General Electric and easing the transfer of American-origin technology from Japan. Even in the wake of the Fukushima accident in March 2011, when other nuclear newcomers like Thailand renounced their plans, Vietnam’s leadership stood firm.

Yet after several years of progress, troubling signs began to emerge in late 2014, the year construction was supposed to begin on the first nuclear unit, when the government decided to extend the project’s prep period to take into account concerns over tsunami risks and an incomplete legislative framework for safety regulation. A year later, in November 2015, the National Assembly’s Committee on Science, Technology, and Environ-

ment reported that construction on the first unit of the Ninh Thuan project, the one slated to begin in 2014, would be delayed until 2022, with the operation date moved back from 2020 to 2028. Then, in December 2015, a popular media outlet published a long article discussing the disadvantages of nuclear energy. Alluding to disagreement among senior officials on the feasibility of the Ninh Thuan project, it proposed abandoning nuclear power altogether. The article’s author, Vu Ngoc Hoang, not only sat on the Central Committee of the Communist Party but served as second-in-command on its Central Propaganda Committee. Although he retired shortly after the publication of the article, it was hard not to see his assessment as a sign of an emerging consensus within the party.

The next year would prove those suspicions. In March the revised National Power Master Plan confirmed the construction delays first reported by the National Assembly, along with a noticeable drop in the role nuclear power was to play in Vietnam’s power generation by 2030, from 10.1 percent to 5.7 percent.

The Vietnam Atomic Energy Institute cancelled the popular Vietnam Nuclear Expo, held every other year since 2008, for what it said were scheduling reasons. The status of nuclear development was omitted from Vietnam’s statement to the General Conference of the International Atomic Energy Agency. Officials and state-owned newspapers began to mention, apparently for the first time, the safety and environ-

R POWER IN VIETNAM mental risks of Chinese nuclear power plants near Vietnam’s border. Then, on November 10, citing dwindling energy demand and nuclear power’s lack of price competitiveness, the government declared that Vietnam’s nuclear energy plans would be postponed indefinitely, a decision endorsed soon after by the national legislature.

Stopping is stepping backwards. One important thing to understand about the debate over Vietnam’s nuclear program is that while there are pros and cons that would exist regardless of whether the program had begun or not, the fact that the program has been in place for a halfdecade or more means it has additional points in its favor. Proponents of the government’s decision can point to things like high upfront costs and increasing external debt, unresolved issues of spent fuel management and proper construction oversight, and the nation’s unexpected drop in energy demand due to a slowdown in economic development since 2008. On the other side, those in favor of nuclear power can argue that it relieves a troubled energy mix, in which hydropower, still responsible for almost half of installed capacity, has gradually lost its charm due to numerous deadly accidents, and the coal-fired plants that provide another third of electricity production have caused alarming pollution in two major cities, the capital of Hanoi and Ho Chi Minh City. These arguments would exist no matter how far along the program had gotten. Yet the progress that has been made means there are additional reasons to try to preserve its momentum.

Take the project to resettle people living in the vicinity of the future plants in Ninh Thuan Province, or the efforts to train qualified human resources for their operation. In 2015, the government announced a budget of $150 million for the relocation of two local communities, totaling 5,000 people, to new sites with fully developed infrastructure—a major improvement for these communities, whose lives mostly depend on coastal fishing and low-producing agriculture. There are also many Ninh Thuan natives among the 400 Vietnamese students who have been sent to Russia since 2010 to study at renowned nuclear institutes such as the National Research Nuclear University. The hope was that after graduation they would come back as nuclear engineers to form the core of Vietnam’s nuclear workforce.

Major changes to the country’s nuclear energy plan will surely affect the career paths of these students, who are spending at least six years abroad learning a very specific set of knowledge and skills in a difficult foreign language, and thus create a brain-drain risk for Vietnam of a small but essential and costly workforce that it might turn out to need in the future.

Another issue that policy makers have to take into account is the public acceptance of nuclear energy. Years of consistent economic development in Vietnam have resulted in a growing middle class in the big cities, a middle class that has become more and more discontent with the way the government handles things like inflation, food safety, and especially environmental issues. Armed with the power of social networks (about one-third

of the country’s 90 million people are active Facebook users), they have voiced their concern over issues ranging from Hanoi’s plan to cut down 6,700 urban trees, to the deteriorating air quality in big cities, and most recently a large-scale fish kill in the coastal region due to a chemical spill from a Taiwan-owned steel factory. Mass protests draw a mix of local residents, Catholic priests, environmental and human right activists, and lawyers— the same sort of crowd who participated in the anti-nuclear demonstrations that led to the shutdown of the Bataan nuclear power plant in the Philippines during the 1980s. Forcing authorities to respond to their demands, albeit slowly, the social and political power of this environmental movement will grow significantly in the future. So, the longer the delays, the stronger the opposition will be from this faction. This is an unfortunate situation given the relatively positive public opinion about nuclear energy at the moment, which has been meticulously cultivated at the national and local levels by the power company Vietnam Electricity and its partners in governmental agencies and international organizations.

With these additional factors in mind, it becomes clear that delays put in place by the government could actually create more problems than currently exist.

A pause in Vietnam’s nuclear energy development, therefore, is not a harmless or neutral measure but one that might cause additional headaches if the program eventually resumes.

Wider consequences. While Vietnamese themselves stand to lose the most from

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their government’s decision to suspend nuclear development, there could be ripple effects outside the country as well, both for Hanoi’s business partners and for nuclear security in the region and around the world.

If the delay in Vietnam’s nuclear plans gets as lengthy as it looks to be, the firms working on the Ninh Thuan project will be the first to feel the impact. For Rosatom, the Russian vendor, it might be relatively insignificant. Not only has a contract not been signed, but the company, a major player in the industry and the most successful nuclear exporter in recent years, already has multiple confirmed and ongoing projects in China, India, Iran, Turkey, Belarus, and Finland.

Given the US-led sanctions imposed on the Russian financial system, the cancellation of a project that Russia is supposed to fund a large part of might be considered a relief to the investment portfolio of

companies have co-developed with the troubled French group Areva in politically unstable Turkey is their last hope.

Finally there’s the issue of proliferation. When the United States struck its 123 Agreement with Vietnam two years ago, it did so without the so-called “gold standard” provision requiring Hanoi to renounce its right to develop enrichment and reprocessing technologies—something it did require of its 123 Agreements with the United Arab Emirates in 2009 and South Korea in 2015. While this is understandable in the context of the Obama administration’s warming relations with Vietnam, it nonetheless means Washington has opened the door for a potential proliferation risk—the introduction of a less restricted nuclear program in a country that has significantly increased its military expenses in recent years due to territorial disputes over islands in the South China Sea. A

the state-owned firm. And although the decision would be a disappointment to Moscow’s nuclear diplomacy, its negative effect on Russian-Vietnamese relations is likely to negligible, as Vietnam still largely depends on Russia for military technology and equipment, and Russia’s most important partnership in the region is still the one it has with China.

It could be a very different story, however, for Japan. Japanese nuclear companies have been stuck for years now in the post-Fukushima mire and desperately need to score foreign contracts to offset their domestic misfortunes. Constructing new nuclear power plants in Japan today is almost unthinkable due to public opposition, and Vietnam and Turkey are the only two countries that have agreed in principle to import nuclear technology from the island nation. With the cancellation of the Vietnamese nuclear program, the Sinop nuclear project that Japanese

delay in those plans does not eliminate that potential and in fact risks undoing the nonproliferation progress Vietnam has already made.

From the perspective of international security, the biggest achievement of the nuclear power program of Vietnam is the fact that the country’s adherence to the nonproliferation and export control regimes has improved significantly in the past few years. Vietnam is now a member of all major treaties and conventions related to nuclear nonproliferation, safety, and security and has actively participated in related programs such as the fuel conversion of its research reactor from highly enriched to low-enriched uranium, which was completed in 2013 in collaboration with the United States and Russia.

Without an active nuclear energy project, the government of Vietnam may lack the incentive to prioritize such activities, which is why it is critical to regional and

36 | POWER INSIDER VOLUME 8 ISSUE 2

global security for the United States, the International Atomic Energy Agency, and other international partners to continue engaging Vietnam in nuclear transparency and capacity-building efforts.

Don’t make it worse. Despite the pronuclear arguments, nuclear energy is still undeniably unattractive to Vietnam at this moment, especially in term of financing and energy planning. Moreover, the sooner the program is paused, the less costly it is for the state budget, which has been so far spent mostly to develop local infrastructure for the project. These are probably among the major reasons that came up during the delay discussion, which occurred among the Communist Party leadership behind closed doors.

Even without the details of this discussion, however, it is important to note that the delay of such important subject (the Ninh Thuan nuclear power plant was designated as state-level strategic project) is not spontaneous, as it could only be decided collectively, at the highest level of the Central Committee. Therefore, rather than trying to reverse the decision, nuclear proponents should focus on preserving the institutional infrastructure and nuclear workforce that have been achieved since 2010 for a possible restart in the future.

It is important to not dissolve existing nuclear organizations; instead their activities and funding can be refocused to other applications of nuclear energy in industry or medicine in order to maintain the governance capability, nuclear knowledge, and international connections. Equally important is the task to keep the trained people that were intended for the nuclear project, either through employing them at thermal power plants, which have many similarities to nuclear plants, or giving them opportunities in nuclear-related areas like R&D or education. Lastly, it is essential for Vietnam Electricity and the government to continue their public communication efforts, without which the public acceptance of nuclear energy cannot be sustained in the future.

It’s still unclear if Vietnam will be part of the “nuclear renaissance” or not, and indeed as 2016 draws to a close, the Vietnamese contribution to that global rebirth is looking more like a stillbirth.

However it is important to keep in mind that national energy programs, especially nuclear ones, are large and complex. They cannot simply be reversed overnight, nor should they be. With dedicated efforts and support from abroad, Vietnam’s nuclear achievements to date can at least be preserved in a safe and productive way, regardless of the fate of the country’s nuclear ambitions. And that is an effort that those on both sides of the debate should be able to get behind.

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Hydrogen is more than just energy storage, renewable hydrogen is the solution towards an energy transition and play’ units, safely and reliably producing very pure hydrogen in continuous or dynamic operation modes.

E

nergy systems across the globe are undergoing a fundamental transformation to increase the quality of air and to decrease their dependency on oil, coal and gas as a primary energy source. Driven mainly by a political vision to decrease the negative impacts of climate change and decarbonize the power sector, wind and solar technologies have emerged as key renewable technologies.

While the cost of renewable technology has decreased much faster than expected, integrating these intermittent energy sources into the power grid is highly challenging due to the increasing need for grid flexibility and energy storage solutions. This is where Hydrogenics, a global hydrogen technology company, is leading the way in delivering a clean and everlasting solution to the renewable energy equation. With over 60 years of experience, Hydrogenics is the world leader in creating hydrogen using

38 | POWER INSIDER VOLUME 8 ISSUE 2

electrolysis and implementing hydrogen fuel cell solutions.

Electrolysers offer a multimegawatt solution Water electrolysers use electrical power to split water (H2O) into hydrogen (H2) and oxygen (O2). Thanks to Hydrogenics’ focus on continuous innovation, our elec-

trolysers are capable of modulating their electrical energy input very rapidly (less than 1 second) over the total power range, making them a very attractive solution for grid balancing services to the power sector in the MW-scale range. Hydrogenics’ electrolysers are ‘plug

Hydrogen is used in a wide range of applications Hydrogen is often seen as the glue in maximizing renewable energy with the industrial and transportation sectors.

Hydrogenics has delivered hundreds of electrolyser systems for every industry, including ammonia production plants (fertilizers), oil refineries, industrial manufacturing plants (steel, float glass, semi-conductors), power plants (generator cooling) and for the hydrogenation of oils in the food industry. In addition, Hydrogenics has supplied electrolysis technology to over 60 hydrogen refuelling stations worldwide where hydrogen is used as a fuel for fuel cell electric vehicles.

Integrating Renewables for grid flexibility Power-to-Gas is a highly effective way of integrating renewables. It can provide a rapid, dynamic response to the Independent Grid Operator’s signal to adjust to the variations in renewable generation output. The siting of a Powerto-Gas facility is not restricted to any geologic formation; it can be deployed wherever the power and gas grids intersect.

Power-to-Gas is a scalable technology. It provides unparalleled energy storage capacity in the TWh range for seasonal storage capability. It can charge energy for several days, or even consecutive weeks, without needing to discharge the stored energy.

Unlike other energy storage technologies,

Power-to-Gas provides the means to both store and transport energy. By storing hydrogen or substituting natural gas in the existing natural gas pipeline network and associated underground storage facilities, the stored energy can be discharged where and when it is needed most. This results in higher overall integrated system efficiency.

Renewable hydrogen as a Solution for Transportation, Storage, Power and Blending of Gases Hydrogenics is leading the industry in renewable hydrogen projects where electrolysers are used to store renewable wind and solar electricity into hydrogen. Once the renewable hydrogen is produced, there are several ways to commercialize it in the energy system. Hydrogen can be re-electrified via a fuel cell to deliver power when needed (power-to-power).

Hydrogen can be directly injected into gas grids (power-to-gas) or combined with carbon dioxide (CO2) to produce synthetic methane (CH4). Hydrogen can also be used in industrial applications (power-to-industry), in fuel production (power-to-fuels) for fuel cell vehicles like buses and cars, and at refineries or in the production of methanol.

Hydrogenics has done over 30 projects using these technologies and applications by converting mostly excess renewable energy to Hydrogen, for a range of applications as noted.

40 | POWER INSIDER VOLUME 8 ISSUE 2

When produced from renewable power, hydrogen offers the capability to significantly decarbonize the power, gas, transport and industrial sectors, by substituting oil, coal and natural gas. In this case, hydrogen acts a 100% renewable energy vector, connecting these sectors to renewable power.

Per Daryl Wilson, Hydrogenics President & CEO, “With over 20 megawatts of energy storage plants commissioned or being built around the globe, Hydrogenics is clearly leading the Power-to-Gas market.”

A fast growing market with game changing potential It is clear that hydrogen technologies will be at the core of our new decarbonized energy system. Whether it’s for transportation, fuel production or energy storage, major companies around the world are strategically transitioning to renewable hydrogen to help reduce their carbon footprint.

Hydrogenics technology is being used in over 100 countries, with varied solutions in power, transport, industrial and gas blending applications.

Hydrogenics: the leading provider of renewable hydrogen solutions Hydrogenics is the global innovation leader with over 60 years of experience in

designing, manufacturing and installing industrial and commercial hydrogen systems around the world.

Hydrogenics’ electrolysers deliver pure hydrogen solutions for industrial processes, renewable hydrogen projects and hydrogen refuelling stations. Hydrogenics also designs hydrogen fuel cells for light and heavy fuel cell electric vehicles including urban transit buses, commercial fleets, utility vehicles and trains, as well as for stationary applications such as critical power and hydrogen power plants.

Hydrogenics currently has lead the global market in Hydrogen energy storage with the vast majority of large projects completed or under contract in Europe and North America, while soon expanding those initiatives in the Asia Pacific region.

Hydrogenics has production sites in Canada, Belgium and Germany and sales offices in select locations around the world. Hydrogenics is publicly listed on the NASDAQ (HYGS) and TSX (HYG) and is the only global company to produce both water electrolysers and PEM fuel cells, making it the leading company in clean hydrogen technology.

AUTHOR Alan Kneisz Director – Business Development HYDROGENICS akneisz@hydrogenics.com www.hydrogenics.com

www.karpowership.com

power for asia

WILL HYDRO THRE PEACE IN MYANMA

M

yanmar faces a critical moment for investment decisionmaking. The Barack Obama administration’s move to lift sanctions on the Southeast Asian country has opened up new opportunities. But the moves that are made today will send political and economic ripples into the future, and the international community must act responsibly.

China wants to finance a 3,600-megawatt hydropower dam called Myitsone — one of the largest in Southeast Asia — with the goal of directing most of the power back to China. This project, however, could compromise peace negotiations between rebel forces in the northern state of Kachin and the Myanmar government.

Construction of the dam stalled in 2011 and presents a critical test for Aung San Suu Kyi’s governing National League for Democracy party.

Villagers in Kachin have expressed extreme opposition to the megaproject, which raises severe environmental concerns and threatens livelihoods. The issue is particularly complex due to geopolitical factors: lucrative financing from China, pressure to improve human rights from the U.S. and international community, and free trade deals with the Association of Southeast Asian Nations.

Proceeding with the dam would diminish the authority of Myanmar to stand up to

42 | POWER INSIDER VOLUME 8 ISSUE 2

China and would exacerbate ethnic tensions that already run high between local communities and the national Myanmar government. Past promises from Chinese companies to share the benefits of hydropower development have only displaced villagers and destroyed local livelihoods in Myanmar. This case is no different. A resolute stance against Myitsone could empower local communities — and such empowerment remains critical to developing peace and stability.

Engagement with key stakeholders is necessary for a sustainable and peaceful 21st-century power system that works for the people.

National electrification Currently, hydropower planning is a source of conflict, with local villagers excluded from the decision-making process. With the right approach, though, this could become an opportunity to build peace and supply sustainable energy to local communities.

First, a sincere and open dialogue that engages key local stakeholders is necessary for reconciliation and building trust. Secondly, thorough environmental impact assessments with the involvement of local stakeholders would go a long way to improving transparency. Finally, the international community has the power and responsibility to

support Myanmar with technical assistance and state-of-the-art science, encouraging bottom-up, small-scale hydropower and distributed renewable energy development.

Electricity access initiatives led by multilateral development banks call for an aggressive push toward 100% electrification by 2030. Currently, only around 35% of Myanmar has access to power, which in many cases does not meet the needs of citizens.

The 100% target could be achieved in a cost-effective manner with local resources, including the solar- and small-hydro-based mini-grids that are rapidly emerging across the country.

“Free” has a price For the past three years, in collaboration with Chulalongkorn University, we have held a series of stakeholder meetings in Bangkok with current and potential investors regarding the prospects for independent power producers, or IPPs, throughout Myanmar. These workshops have shed light on the IPP predicament facing the country and its neighbors. The “free power and free share” model — under which Myanmar is entitled to free electricity and stakes in such projects — fails to deliver prosperity, as fair mechanisms for allocating the benefits are not institutionalized. Often, local communities do not receive electricity and lose out on

Most of the hydropower development proposals in the Salween river basin during the last decade have not been built. A few large-scale cross-border IPPs currently operate in tributaries of the Irrawaddy River, including Shweli1, which has installed capacity of 600MW, and Dapein1, which has 240MW. While the electricity generated there is mainly exported to China, the IPP agreement grants 10-15% of total project generation and shareholdings for free to Myanmar.

The conventional wisdom is that “free power, free share” remains a prerequisite for concessions by Myanmar. But this concept is inherently flawed.

For example, our field survey in Shweli1 makes it clear that 15% of generated power is provided for free to the state-owned mining company and military camp, while neighboring towns must purchase electricity at 4-8 cents per kilowatt-hour and villages must re-import electricity from China at 20 cents per kilowatt-hour. These tariffs are higher than tariffs on the grid.

To make things worse, the “free” benefits in Myanmar fuel conflict by compounding inequality among civilian groups. One example of this is the Mong Ton dam in Shan State, promoted by the previous military government. Nongovernmental conservation groups held an anti-dam campaign “to urge the government as well as Chinese and Thai

EATEN AR

alternative investments in energy resources that require less transmission and distribution infrastructure.

Banks play a key role in driving such agreements. Until now, IPPs have tried to maximize exports to neighboring countries and minimize financial risk in emerging markets like Myanmar. The lack of credibility among Myanmar’s power utilities enables neighboring countries to take advantage of lax regulations and opportunities for lucrative investment at the expense of local villagers.

As the Myanmar government often cannot grant concessions to cross-border IPPs due to a high risk of credit default, the benefits remain unrealized in many cases.

investors to immediately stop plans to build dams, as this is causing conflict and directly undermining the peace process,” as Burma Rivers Network put it. Salween Watch, a civil society watchdog, sees the construction of dams as “one of the strategies used by the military regime to gain foreign support and funding for its ongoing war effort” while viewing dams as “a strategy to increase and maintain its control over areas of ethnic land after many decades of brutal conflict.”

With the democratically elected NLD government having taken power in 2015, Myanmar has an opportunity to escape past nightmares and begin to distribute benefits

equitably. Certainly, monetary compensation and free power seems appealing to local communities in need of electrification and economic development. However, as the NLD rightly states, it is much more critical to secure livelihoods and the environment by pursuing sustainable development practices.

Villagers depend on income from natural resources, including forest and fisheries products. Our field survey regarding the Mong Ton hydropower development shows that local villagers cite deforestation, river flows and flood damage as their top dam-related concerns. Investigations into the effects of dam construction are critical undertakings that must become part of the hydropower decision-making and planning process. Without them, there can be no trust, and a strong local backlash against the influential, military-tied Ministry of Interior is inevitable.

Start with science In the past, Myanmar’s government glorified dams while environmental groups vilified them. Neither stance was grounded in rigorous scientific evaluations, and each side’s argument fed the other’s distrust — creating resentment and hampering dialogue.

To move forward, we recommend establishing regulations on environmental impact assessments that include public disclosures.

Building reliable institutions to enforce such rules poses a challenge, but doing so could help to bridge the gap between groups and restore trust — something that has been lost in Kachin and Shan states since 2011, as recent flare-ups in violence demonstrate.

The timing is urgent. The peace process remains on the cusp of an agreement. Rural electrification efforts are underway, but we know that distributed mini-grids from local solar and hydropower resources can be built and deployed faster than megaprojects, supporting peace efforts. The opportunity cost of inaction is high. Continuing the Myitsone project as a concession to China, meanwhile, could undo half a decade of peace negotiations and further damage the environment while negatively impacting villagers and their livelihoods.

In short, increased transparency and local engagement could usher Myanmar toward peace and prosperity. At the same time, it is up to the international community to expand the country’s intellectual and institutional capacity. We can support Myanmar’s infrastructure development not only through hard and soft loans, but also with technical assistance.

Myanmar needs environment- and peoplefriendly hydropower planning. Only then will the projects support peace-building rather than conflict.

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UPCOMING EVENTS

For the Energy Business in Asia

19.Apr - 21.Apr, 2017 Shanghai, China SNEC PV Power Expo Int’l Photovoltaic Power Generation Exhibition

22.May - 24.May, 2017 Beijing, China Energy Storage Conference & Expo Energy Storage Conference and Expo

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31.May - 03.Jun, 2017 Baku, Azerbaijan Caspian Power Power and Alternative Energy Exhibition

26.Apr - 27.Apr, 2017 Astana, Kazakhstan KazAtomExpo Int’l Nuclear Power Engineering and Industry Exhibition and Conference

31.May - 03.Jun, 2017 Baku, Azerbaijan Caspian Oil & Gas Caspian Oil and Gas Exhibition

04.May - 06.May, 2017 Shanghai, China IE expo Int’l Trade Fair for Water, Sewage, Refuse, Recycling and Natural Energy Sources 11.May - 13.May, 2017 Bangkok, Thailand Thailand Energy Saving Expo Int’l Exhibition on Energy Saving Products and Technology

01.Jun - 02.Jun, 2017 Baku, Azerbaijan Caspian Oil & Gas Conference Caspian Oil and Gas Conference 06.Jun - 08.Jun, 2017 Beijing, China CIGEE China Int’l Smart Grid Construction Technology and Equipment Exposition and Summit

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17.May - 19.May, 2017 Jakarta, Indonesia Battery Indonesia Int’l Battery, Raw Material and Parts Exhibition

14.Jun - 16.Jun, 2017 Pavlodar, Kazakhstan KazInterPower Int’l Exhibition of Equipment and Technologies for Power Engineering and Electric Machinery

17.May - 19.May, 2017 Jakarta, Indonesia Powergen& Renewable Energy Indonesia Int’l Power Generation and Renewable Energy Exhibition 17.May - 19.May, 2017 Jakarta, Indonesia Solartech Indonesia Int’l Solar Power and PV Technology Exhibition 17.May - 19.May, 2017 Tashkent, Uzbekistan Power Uzbekistan Int’l Energy Industry Exhibition 17.May - 19.May, 2017 Tashkent, Uzbekistan OGU Int’l Oil & Gas Exhibition and Conference 18.May - 20.May, 2017 Beijing, China ISH China Int’l Trade Fair for Sanitation, Heating and Air-Conditioning

44 | POWER INSIDER VOLUME 5 ISSUE 2

05.Jul - 07.Jul, 2017 Yokohama, Japan Renewable Energy Exhibition Renewable Energy Int’l Exhibition 12.Jul - 14.Jul, 2017 Jakarta, Indonesia Gas Indonesia Summit & Exhibition Advancing Indonesia’s Gas and LNG Industry 19.Jul - 22.Jul, 2017 Hochiminh City, Viet Nam Enertec Expo Int’l Exhibitiion on Products, Technologies of Energy Saving and Green Power 19.Jul - 22.Jul, 2017 Hochiminh City, Viet Nam Vietnam ETE Int’l Exhibition on Electrical Technology and Equipment 16.Aug - 18.Aug, 2017 Guangzhou, China APBE China Asia - Pacific Int’l Biomass Energy Exhibition

Your partner for renewable and clean energy

ANDRITZ HYDRO is a global supplier

Water has always been a source of fascina-

made energy generation solutions. From

of electromechanical equipment and

tion and inspiration. But to us at ANDRITZ

equipment for new, turnkey hydropower

services (“from water-to-wire”) for

HYDRO, it means even more because it

plants, and the refurbishing and overhaul

hydropower plants. With over 170

represents a constant challenge to create

of existing installations, to comprehensive

years of experience and more than

up-to-date technological innovations. Util-

automation solutions.

30,000 turbines installed, we are a

ity companies from all over the world value

market leader for hydraulic power

our know-how and commitment, and trust

We focus on the best solution – “from

generation.

in the safety and reliability of our tailor-

water-to-wire”.

ANDRITZ HYDRO GmbH Eibesbrunnergasse 20, 1120 Vienna, Austria Phone: +43 50805 0, Fax: +43 50805 51015 contact-hydro@andritz.com

www.andritz.com

GAS CONTINUOUS POWER HIMOINSA FAR EAST. 101 Thomson Road, #15-05 | United Square Singapore 307591 | Tel.: +65 6265 10 11 | Fax: +65 6265 11 41 enquiries@himoinsa.com.sg

46 | POWER INSIDER VOLUME 5 ISSUE 2