Pimagazine Asia Vol 11 issue 5 by Pimagazine Asia

VOLUME 11 ISSUE 5

Renewable Energy in Vietnam

30 years of Microgrids

Securing Asia’s Grid

Digital Asia’s Solutions Asia Carbon Future

100 years of control technology innovation

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EDITORS NOTE So how are you baring up? 2020 has certainly been an interesting one. Locked down, set free, locked down, set free! Masks, no masks, vaccine, no vaccine, work in the office, work from home…it goes on! Obviously this issue contains thoughts, opinions and views on the current situation, and what people are doing to overcome the challenges we are all facing. A positive I have found is a better work life balance for myself and staff. I do enjoy working from home, being able to the school run, and just being present has made a difference

Subscribe Pl Magazine is your one-stop shop for the latest news on iT’S in the power industry in oUr hAndS Asia. For your FREE subscription of Pl Magazine Asia, visit: www.pimagazine-asia.com/subscribe The Hydrogen Economy

Microgrids and Distributed Genera tion

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Sean

Sean Stinchcombe Editor

Limiting Climate Change

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to me and my family, as it has for the majority of my staff, some have struggled with the

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CONTENTS Editors Note ��3 Operating Distribution Grids: Lessons learned from COVID-19 ��6 Securing the Grid ��9 Managing the changing demands on our Power Grids using digital solutions �� 14 Asia’s power industry updates �� 16 What 30 years of Microgrid experience teaches us about the future of energy ��22 Renewable energy highlights ��25 Renewable energy in Vietnam �� 28 Industry seeks to replicate Taiwan wind success throughout Asia �� 39 The trillion-dollar question: how will Asia Pacific meet power supply needs in the next decade? �� 42 Climate Investment Platform: Plugging the energy investment gap in developing countries �� 45 Boiler water wall tube inspection ��52 Asia’s Nuclear energy growth - World Nuclear Association �� 56 Nuscale Power �� 58 Ensuring continuity of Utility Operations: Recommendations for mitigating the effects of COVID-19 ��60 Thought Leadership Paper: Toward a Zero Carbon Future �� 61 Advertisers Index �� 63

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Operating Distribution Grids: Lessons Learned From COVID-19 The pandemic has been a seismic event in many areas of society and power distribution grids are no exception. Anja Langer Jacquin.

COVID-19 has been a seismic event

us so far for running distribution

offices empty, as people stayed home

in many areas of society and power

grids during lockdowns, in the short-

(many still are) to stop the spread

distribution grids are no exception.

term aftermath, and for the long-

of the virus. As one would expect,

Here in Europe, most countries have

term future?

this had implications for distribution

seen the worst of the virus and gotten it under control, but it’s still here and

system operators (DSOs) needing

Pandemic priorities

now around the World the second

to find a new balance of electricity, production, and consumption — but

Thinking back to the height of the

the most serious threats weren’t

virus, societies were eerily quiet in

necessarily the most obvious ones.

With that in mind, what are the

terms of economic activity. Factories

Yes, loads on the grid changed,

lessons that the pandemic has taught

were dormant, shops shuttered, and

forcing DSOs to adapt. They

wave is coming!

6 | POWER INSIDER VOLUME 11 ISSUE 5

were quite easily able to, though.

observation. Broadly, there are

performance at a granular level,

The challenge was new areas

two ways to prepare for a potential

which means digitalisation and

of increased demand such as

second wave or another crisis. One is

collection of real, hard data.

temporary hospitals and other

traditional grid reinforcement — based

Though digitalisation itself

critical locations. Grids weren’t

on observations from the pandemic,

requires investment, it is in orders

planned with these in mind and DSOs

utilities can upgrade transformers, add

of magnitude less than physical

had to keep supply constant and at

new cables, and so forth. The problem

infrastructure and can give DSOs

high quality. However, they often

is, this is a long and expensive

confidence that they are getting the

had to rely on old analogue assets

approach to take, especially when

most out of every pound and euro.

that generated no performance data.

time and money may be limited.

Ensuring they were up to scratch meant manual inspection.

Digitalisation also enables more The second approach is a digital

remote working, which not

one. Greater real-time insights and

only protects people during the

This brings us to the bigger but less

control over grid performance enables

pandemic, but also saves money

obvious challenge — people. For a long

DSOs to better respond to future

and satisfies what may turn out

time, the utility sector has depended

difficulties and more intelligently plan

to be a widespread shift to more

on the accumulated knowledge and

investments. Compared to physical

remote working across societies

experience of an ageing workforce.

upgrades, digital investments can be

after the pandemic.

However, the virus required DSOs to

transformative in a very short time

minimise the number of employees

and for a typically lower cost.

in control centres and engineers in the field — especially given the increased

At the same time, COVID-19 could change how people think about

Looking ahead

risk for older workers. There is not

energy entirely. Governments are pushing for smart solutions

a lot of spare capacity in the typical

Second wave or not, eventually the

to ensure we repower up the

DSO workforce and perhaps the

pandemic will pass. The challenge

economy based on sustainable

biggest threat to grid stability was

then will be to figure out what

energy solutions. We may see

that too many key personnel were

such a seismic event means for the

more microgrids and distributed

removed from the workforce during

future of distribution networks.

resources as a response. DSOs will

lockdown. As such, the inability to

be called upon to invest to adapt

monitor and control assets remotely

One possible effect is there will be

and digitalisation will give them the

emerged as a major pandemic risk.

less public funding available, with

insight to derisk those investments

governments indebted because of

and increase return.

Reopening and reemerging • •

their response to the pandemic. This may end the traditional

The trend toward smart grids was

What went well and what could

‘better safe than sorry’ approach

already well underway, but the

have gone better?

of investing in expensive physical

pandemic has underlined both

What can we do/put in place to

infrastructure upgrades when

the wisdom and urgency of that

be better prepared for

networks reach capacity.

evolution. The enduring lesson

future crises? •

of the pandemic for DSOs is that

What new practices and

In the future, tighter budgets

fast, smart, and efficient decisions

processes have emerged that we

may mean greater emphasis on

depend on deep, broad, and

should have been doing anyway?

sweating assets and only making

accurate data.

large physical investments when The answers will vary for each DSO,

absolutely necessary. To do that,

but we can make one high level

DSOs need greater insight into grid

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8 | POWERorINSIDER VOLUME 11 ISSUE 5 Power Systems, Ltd. in the United States and other countries. trademark of Mitsubishi Hitachi

Securing the Grid

Solutions to enhance grid resilience and reliability.

The global power sector has made

Aurora Wind Farm, Chile

a dramatic transition toward sustainability and affordability of energy supply over the last decade. Positive advances include increasing use of variable renewables, more sustainable approaches to maintenance and equipment replacement, distributed generation, and electrification of other energy sectors such as transport and industries, as well as electrification of remote areas.

service at Hitachi ABB Power Grids

With a growing share of renewable

added, “Reliability is actually

generation connections to grids reliant

However, such rapid evolution

subordinate to resilience, since

on power electronic interfaces and

poses a number of challenges

improving reliability is one of the ways

fewer electro-mechanical couplings,

for two crucial factors for power

in which grid operators can improve

system inertia and short circuit currents

grid operators — resilience and

overall resilience.”

become scientifically time varying,

reliability. These terms, however, are sometimes poorly defined.

which again challenges the resilience of

The resilience issue

modern power systems. Furthermore, human error is a big component. For

“Resilience and reliability are

In terms of electrical supply systems’

example, during service operations, if

functionally connected, although

resilience — and the ability to mitigate,

there is a lack of systematic processes,

they mean very different things,”

survive, and recover from high-impact

it is possible for a single engineer to

explained Alexandre Oudalov,

threats and system failures — the

ground an important element causing a

manager power systems of the future

challenges are manifold. These range

major short circuit, which can shut down

in market innovation at Hitachi ABB

from extreme weather, such as forest

a power system.

Power Grids. “Reliability is about

fires in California and the growing

reducing the probability of equipment

frequency of dangerous storms, to

Along with the readiness for

failure or power interruptions, while

other unpredictable events, such

maintaining supply throughout

resilience is about reducing the

as the loss of several power plants

and the recuperation from major

damage caused from outages and

that led to power cuts for nearly one

disturbances that may be both

shortening their duration.”

million people in the United Kingdom

extreme and prolonged, resilience can

Wolf Mueller, senior vice president

in 2019.

also refer to a company’s abilities to

FEATURE: sECURING THE GRID

duration of interruptions per consumers during the year). Some countries have regulatory legislation to encourage power grid reliability and resilience. In the United States, the current legislative environment has not caught up with the regulatory reliability and resilience measures that have been implemented in the United Kingdom or Australia. For example, in the United Kingdom, the Electricity Act grid code regulates continue developing and enhancing its operations during challenging periods.

power grid operations and policies 1.

The reliability issue Reliability is challenged in a very specific manner in the power industry.

Power generation and transmission

under the industry regulator, Office

capacity adequacy, that is, it must

of Gas and Electricity Markets, while

be able to meet peak demand for

in Australia similar legislation exists to

electricity. For example, 15% to

supervise the country’s regulator, the

20% reserve.

Australian Energy Market Operator,

Power systems must have

working with state governments.

As Wolf Mueller explained, “All utilities

adequate flexibility at different

experience ageing equipment that is

levels (generation, T&D grids,

With the distinctive challenges

facing new operating modes, energy

demand side) to address variability

posed by this evolving environment,

flows, and loading patterns. It needs to

and uncertainty in load and

it is no surprise that operators seek

cope with much more fluctuation and

renewable generation resources.

innovative technologies to improve

Power systems must be able to

resilience and reliability as they

assets than ever before. This is combined

maintain steady frequency and

future-proof their operations.

with an ageing workforce and talent pool

voltage within an acceptable range.

many more transitions through grid

What are the solutions?

in the market.” This is changing how customers invest in modernising their installed base in order to improve reliability and resilience. One of the key considerations here is digital transformation — how can digital enablement help enhance resilience and reliability? According to the Ernest Orlando Lawrence Berkeley National Laboratory, power outages cost the U.S. economy

One of the key considerations here is digital transformation — how can digital enablement help enhance resilience and reliability?

Fortunately, a huge range of solutions exists to enhance resilience and reliability. Technical solutions include strong HVDC links, power quality solutions, remote data analysis services provided to substations, reliability-based maintenance solutions, rapid response rooms used to locate faults, 24x7 expert advice based anywhere in the world, as well as advances including augmented reality (AR) and drone maintenance.

approximately US$79 billion a year.

In addition, grid operators must also

Clearly, ensuring the reliability of

maintain adequate levels of reliability

power grids is an important matter for

as measured by the most used outage

For reliability-based maintenance

generators, distributors, and customers,

indices, SAIFI (the average number of

solutions, the increasing amount

which is why most industry standards

sustained interruptions per consumer

of connected assets and use of

follow these key rules:

during the year) and SAIDI (the average

artificial intelligence (AI) is enabling

10 | POWER INSIDER VOLUME 11 ISSUE 5

Solutions to enhance grid resilience and reliability

SVC Installation, Viklandet,

operators to better anticipate the

Norway

risk of equipment failures by using the industrial internet of things (IIoT) to enable sensors that collect and analyse data from various units to significantly reduce their costs of downtime and maintenance. To handle fluctuations in power flow and voltages, the overload management equipment must have an extended range, react fast to disturbances and apply remedial actions

Expertise in partnership

(sometimes in milliseconds), such as high voltage direct current (HVDC).

of-the-art maintenance partnership solution for customers to optimise

This proactive approach to network

their substation asset management

operation and maintenance and the

and system performance.

There are also many more proactive

underlying algorithms and data are

tools that help to prepare a grid in

linked to Hitachi ABB Power Grids’

RelCare applies a risk matrix to a

advance rather than reacting to an

collaborative operations centres that

customer’s assets and increases focus on

event. Network operations planning

help asset owners raise the reliability

executing the right maintenance actions

tools, for example, enable people

of their systems, avoid unforeseen

to ensure proactive detection and

to decide in advance on equipment

failures, and focus their activities on

avoidance of most impacting failures.

margins, loading capacity, and so forth.

the most relevant aspects — focused

It embeds safe maintenance policies,

This ties closely to assets’ health history,

maintenance, critical spares inventory

offers system reliability and financial

enabling a deeper understanding of the

and so on.

modelling, planning optimisation, and

different conditions that equipment

increased focus to take the most relevant

has experienced in the past and using

HITACHI ABB Power Grids has

that information to inform future

recently responded to this increased

decision-making.

need for reliability with the launch of

Through its dynamic monitoring,

RelCare — a reliability-based, state-

it enables proactive planning of

maintenance decisions.

maintenance actions and reduction of costly emergency repairs, while also preventing failures related to poorly executed maintenance by following digitalised step-by step execution procedures. Moreover, RelCare contributes to greater sustainability, as key components will only be replaced when needed and power from sustainable sources can be better integrated. A more automated approach to maintenance will mean less traveling to site. The partnership provides an important step in ABB RelCare teamwork in action

preparing electrical infrastructure at a time when countries all over the globe

FEATURE: sECURING THE GRID

are increasingly looking to reduce their

The Gulf Cooperation Council

lost revenue and socio-economic impact,

dependence on fossil fuels.

Interconnection Authority (GCCIA)

considering the importance of power for

Saudi Arabia is the first customer

safe transportation, reliable health care,

According to Wolf Mueller, sustainability

to sign up for HITACHI ABB Power

and other critical segments.”

through lifetime extension has a

Grids’ new RelCare reliability-based

big impact. “Only heavily polluting

service solution to remotely access

“RelCare is a game-changing new

transportation, power, or industrial assets,

and monitor the maintenance of their

approach to substation maintenance

with high fuel consumption and high

substations across five Gulf countries

that enables O&M and asset managers

emissions have a negative sustainability

to help improve their technical

to optimise maintenance costs,

balance if life is extended. Extending

performance and enhance the system

increase maintenance safety, and, most

the lifetime of T&D assets generally

reliability of their network.

importantly, increase system reliability.

has a positive impact unless they are highly inefficient and loss making, when

Hitachi ABB Power Grids is committed to

The future

upgrades and retrofits are the next best

working with our customers, from utilities to data centres, to improve resilience and

option. It is a key pillar of any service

Wolf Mueller said, “In a demanding

reliability operations throughout the entire

sustainability rationale to repair and

world of power infrastructure, it is critical

value chain in order to build a stronger,

maintain prior to ripping out, replacing,

for equipment to operate at the highest

smarter, and greener grid for the society

and disposing.”

level possible to prevent power failure.

of the future.”

Power cuts are highly critical in terms of

12 | POWER INSIDER VOLUME 11 ISSUE 5

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Managing the Changing Demands on our Power Grids using Digital Solutions Thibault Godefroy, Vice President of Commercial Power Systems, Asia Pacific, Schneider Electric The stability of power grids supplying

are experiencing significant changes in

energy to our homes and businesses

energy flows. In the past, the energy

is emerging as a critical success factor

consumption pattern was easy to

for maintaining both physical and

interpret. At around 6:00 p.m. rates

economic security. Especially in

of energy consumption were high

extreme weather climates, like those

and not much energy was consumed

across Asia.

during the night. Now, businesses, hospitals, and homeowners, for

Regardless of the electric grid sizeâ&#x20AC;&#x201D;a

example, may be producing energy

To accommodate the changing

microgrid with several hundred users

at midday with solar panels. And

nature of the grid, stakeholders

or a regional grid with millions of

with the current pandemic altering

are investing in both technology

usersâ&#x20AC;&#x201D;grid complexity is on the rise.

lifestyles across the region, energy

and manpower to better forecast

Trends such as the sharp increase

behaviours are changing.

short-term evolution of electricity

in Internet of Things (IoT) devices

in their operation. Without accurate

and digital solutions that tax large

Energy prices that sometimes change

consumption forecasting, nodes

and small grid capacities, a growing

minute-by-minute are also altering

within the grid can become saturated

installed base of renewable energy

where and when enterprises choose to

with energy demand that is too

generation, and the proliferation of

consume the most energy. This makes

high which, in turn, can lead to grid

distributed energy resources (DER)

the flow of energy within grids more

failures and blackouts.

behind the meter at the gridâ&#x20AC;&#x2122;s edge,

volatile. Instead of traditional top down

are all contributing to this complexity.

energy distribution, grids must deal with bidirectional energy flows which

Deploying AI to Understand Energy Use

Unfortunately, the electric design of

change throughout the day and night.

existing grids has not been optimized

Even the last projects are including

Electrical utilities and microgrid

to accommodate these new

storage as a crucial step with energy

managers need to forecast, with

behaviours. Local and national grids

storage systems.

high accuracy and speed, short-term

14 | POWER INSIDER VOLUME 11 ISSUE 5

grid energy consumption across

time live situations. For example,

a new enterprise suddenly turns

the geography of their grids. This is

the changes that are taking place

the lights on in a new facility

where Predictive Layer, a Schneider

within a grid (like the addition of

within a geography, the engine

Electric Technology Partner, offer

new transformers in a location)

can recalculate that the energy

support. We have developed an

and the intricate nuances in energy

consumption peak will now occur at

artificial intelligence (AI) engine

consumption demand automatically

4:00 p.m. rather than at 6:00 p.m.

to address the new layers of grid

are fed into the model on an ongoing

in that area.

network complexity.

basis. This includes data from

Today most large grids deal with the

transformers, information about the

Instead of a team of people

challenge of energy consumption

behaviour of subscribers connected

generating 10 forecasts of what is

forecasting by assigning teams

to the network, and information

happening in each of their regions,

of mathematicians to automate

surrounding weather-related and

the software can generate thousands

and scale the forecast. Should the

calendar date-based patterns of

of such forecasts in minutes. These

parameters of energy consumption

consumption.

forecasts can account for every

changeâ&#x20AC;&#x201D;an extreme weather event, or a societal event where many people are forced to work from homeâ&#x20AC;&#x201D;those complex mathematical

locality within the grid.

Forecasting means Less Downtime and Lower Operational Costs

models have to be rapidly reworked

AI continues to prove its power. The benefits of having access to such an automated system include

in order to align with the new

AI allows us to better forecast

less network downtime, better

reality. When thousands of grid

what is happening every day,

operational management and cost

network nodes are involved, the

everywhere within the confines

control, and higher efficiency of

task becomes too complex to

of the grid, and continues to get

electricity distribution. The tool also

execute in a rapid fashionâ&#x20AC;&#x201D;even for

smarter as it processes more data.

makes it easier to manage a crisis

the best mathematicians. The task

At each point of the day or night

where rapid changes in consumption

is also challenging for microgrids

it can generate, on behalf of grid

require immediate actions.

and smaller local grids who typically

operators, local schedules of how

have few human resources to

much energy should be delivered to

The goal is to ensure the continuity

dedicate to forecasting.

designated locations and expected

and resilience of our grids, regardless

volumes of energy coming in or

of the changes, be it weather or

An AI-driven forecasting engine

out. AI forecasting tools can also

changing work patterns, that are

learns from both past energy

automatically reconfigure itself as

taking place.

consumption patterns and from real

changes occur across the grid. If

Asia’s power industry updates

Narsingh Chaudhary, Executive Vice President & Managing Director, Asia Power Business, Black & Veatch Black & Veatch is an employee-owned

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16 | POWER INSIDER VOLUME 11 ISSUE 5

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FEATURE: ASIA’S POWER INDUSTRY UPDATES

power and renewable energy as well as

Thailand is targeting for solid industrial

As part of a consortium with

transmission and distribution in Asia.

growth. They are establishing new

Sumitomo Corporation (SC) and

business zones apart from the industrial

Italian-Thai Development PCL (ITD),

Our first project in Thailand, in

zones they have, like the Eastern

Black & Veatch is the EPC contractor

1967, doubled the country’s access

Economic Corridor, which is prime for

delivering the 500/230/115 kilovolt

to electricity. We have since

development. All these present new

(kV) Chachoengsao 2 substation

completed more than 17000 MWs of

opportunities for the power industry

including gas-insulated switchgear (GIS)

conventional and renewable energy projects in the country.

equipment at 500 kV and 230 kV. Myanmar is another country with a

Another project the consortium partners

growing demand for power.

are collaborating on is EGAT’s Bang

Since 1969, we have completed

Pakong Combined Cycle (Units 1-2

more than 100 projects across 24

We see opportunities across the power

Replacement) Power Project. Earlier in

provinces in Indonesia. We provide a

value chain that will support the different

2020, the project met the milestone for

full range of engineering, construction

stages of development in conventional

back energization of Unit 1. The back-

and consulting solutions across all

and renewable energy generation, and

energization milestone marks the start of

technologies and scale. We also

transmission and distribution.

plant commissioning by energizing the

have contributed to 20,000 MW of

main electrical systems of the plant.

conventional and renewable energy

For example, for conventional

projects in Indonesia.

generation projects, we offer solutions

Black & Veatch is the technical leader

in areas including natural gas, plant

on the consortium which includes SC

Black & Veatch has remained

modernization and decarbonization.

and ITD. The team will deliver two

committed to Asia throughout all

Our distributed energy solutions include

single shaft combined cycle trains of

events spanning the past 53 years and

primary power systems, reliability

approximately 704 megawatts (MW)

continues to invest in the region as part

and resilience, commercial solar and

each using General Electric’s 9HA.02

of its long-term growth strategy.

distributed generation. Renewable

advanced class turbine technology. The

Energy solutions we provide include

net capacity of the project is 1408MW.

During the global pandemic, we have

solar PV, floating solar, wind and

also remained focused and committed

battery energy storage systems. For

In Indonesia, power projects that the

on executing power projects in the

transmissions projects, we support

company is contributing to include the

region while adapting to new ways of

clients with solutions in Extra High

Central Java Supercritical Power Plant

working. Today, Black & Veatch offers

Voltage (EHV), substation, system

and the Tanjung Jati B Units 5 & 6 Power

clients the benefit of a global workforce,

studies and advanced transmission

Plant in Central Java.

with offices throughout Asia.

design, including emerging technologies

Southeast Asia has many countries with

such as Breakthrough Overhead Line

We are also proud to contribute our fuel

Design ® (BOLD).

flexibility solutions to the success of

promising growth. Countries including Indonesia, Philippines, Thailand,

Philippines’ South Luzon Thermal Energy

Regional highlights

Vietnam, Malaysia and Myanmar all

Corporation (SLTEC). SLTEC selected us to perform fuel flexibility assessment

need reliable power as they are at

Earlier this year, we celebrated the

for its 2x122 MW circulating fluidized

different stages of development.

Electricity Generating Authority of

bed combustion (CFBC) power plant at

Thailand’s (EGAT) Chachoengsao 2

Batangas, Philippines.

Philippines is accelerating its energy

substation project milestone when

transition to renewable power and

it met the requirements of the

One thing is certain: Asia’s energy

distributed energy as they have

230/115 kV AC withstand test. EGAT

transition is accelerating. The global

many islands. Indonesia is facing a

is responsible for Thailand’s entire

pandemic has showed that reliable

similar transition.

electricity transmission network.

power is critical to quality healthcare, education, and the economy during

18 | POWER INSIDER VOLUME 11 ISSUE 5

Black & Veatch is helping Asia’s power industry leaders

times of emergencies. At this point, close

with Battery Energy Storage Systems

machine learning. We are combining

to one-half billion people do not have

(BESS) and larger transmission capacities

digital solutions with our deep

access to reliable power in Asia.

to stabilize the grid.

institutional knowledge of the industry to convert data into insights that

In the short term, while we anticipate a

Trend #3: Asia power sector accelerates

increase efficiency across an asset’s

shrinking of investments as the economy

digital transformation adoption

lifecycle and deliver tangible savings for

works through the impacts of the

the operator.

ongoing pandemic, demand for power

Regional governments are turning

remains with respect to Gross Domestic

to digital technology and smart grids

In reviewing energy transition strategies

Product (GDP) growth and aspirations.

to optimize the impact of individual

due to the global pandemic, some

This is likely to translate to an accelerated

technologies in integrated power

power leaders are preparing to reduce

growth track path in the mid-term.

infrastructure. Digital transformations

capital expenditure while others are

present opportunities to address core

looking for innovative solutions to

Current power sector trends we are

challenges of grid stabilization, peak load

reduce operating expenditure.

seeing in Asia include:

management, system flexibility and reliability in a holistic manner.

Trend #1: Integrated power

Our experience in monitoring complex thermal equipment and delivering

infrastructures continue to meet Asia’s

Smart grids help to integrate

value-add solutions positions us to

electrification demands

renewable generation into the grid

support Asia’s development strategies. At

and manage supply and demand.

the same time, our experience with the

Asia’s power leaders are continuing

Predictive asset maintenance allows

balance of plant enables us to identify

to invest in integrated power

plant operators to predict the state of

emerging issues with potential negative

infrastructures to re-balance their

the equipment so that maintenance

impact across a system of technologies

energy portfolios to meet universal

can be scheduled. Forecasting

early, be they centralized or distributed.

electrification and carbon emission

and real-time monitoring address

reduction targets.

sustainability and reliability issues of

One of Black & Veatch’s strengths

power grids, while mitigating costly

is being technology agnostic. That

outages and other equipment failures.

allows our Asset Management Services

The opportunity is to draw upon Distributed Generation, like microgrids,

(AMS) team, for example, to pick the

to help achieve remote electrification

Customers value our decades of

technologies best suited to meet the

and sustainability targets in archipelagic

experience across the globe in building

needs of our clients and integrate them

countries, like Indonesia and Philippines.

successful projects and us bringing

into our infrastructure projects. Our

Microgrid solutions provide the power

those best practices towards ensuring

real-time equipment monitoring and

reliability that these locations need and

the highest quality, safety and reliability

diagnostics, and cost savings helps asset

ensure these are commercially viable.

standards on every project.

owners improve day-to-day decisionmaking in an ever-changing landscape.

Trend #2: Battery Energy Storage

Digital transformation is presenting new

Systems increases grid stability,

possibilities for Asia’s power sector to

Faced with many moving parts in a

enhances Asia’s energy security

operate in a safer, more efficient and

regional energy transition, the region is

profitable manner.

relying on a mix of grid, conventional

Regional power leaders are enhancing

and renewable power, enabled by

energy security by diversifying fuel

To align with the region’s requirements,

new technologies to advance more

and primary energy sources used for

we enhanced our expertise in the

developed economies and support

power generation. One energy source

design, construction and management

market growth.

the region is investing in is renewable

of critical infrastructure combined

energy. The opportunity is to balance

with leading-edge capabilities in data

One benefit of digital technology

variable renewable energy generation

analytics, artificial intelligence and

and smart grids is optimizing the

FEATURE: ASIA’S POWER INDUSTRY UPDATES

impact of individual technologies.

focusing on core areas including risk

past, participants used to travel from

Digital transformations address core

assessment, investment planning, data

different countries to attend the

challenges of grid stabilization, peak load

management, performance analysis,

training. We have since conducted

management, system flexibility and

and monitoring and diagnostics, Black

online training successfully. This is one

reliability in a holistic manner.

& Veatch’s ASSET360® platform, is

of the biggest plus point: people are

designed to promote innovation across

realizing that business travel time can

The large quantity of data collected by

the entire infrastructure lifecycle through

be reduced, resulting in efficiencies and

smart sensors is particularly useful for

its modular, extensible architecture, and

increased productivity.

renewable energy applications. As wind

its seamless integration of functions and

and sunlight affect power generation

tasks across all specialized modules.

production, sensors and smart grids

We have also implemented new ways to safely maintain and build client

ensure that renewable energy plants are

Through combatting the pandemic,

relationships, including through our

operating to their optimal potential. This

our team has realized the power of

webinar series, digital workshops, virtual

promotes grid stability and address the

working remotely. By advising ongoing

events and physical distancing during

intermittent nature of renewables.

projects and supporting customers

business-critical client meetings.

through technology, our team has In addition, incorporating digital

been able to achieve meaningful

The pandemic has also increased

transformation such as predictive asset

progress in our projects.

awareness for personal and social

maintenance offers forecasting and

safety. We are seeing people adjust

real-time monitoring. Smart grids are

We have a project in Indonesia where

their mindsets from “I need to be

helping operators identify synergies

the commissioning support from

safe” to “everybody needs to be safe”.

through capabilities like fault prediction

the OEMs were unable to fly in. We

We feel proud that we have helped

and dynamic maintenance, investment

addressed the travel restrictions by

our customers and partners deal

optimization, energy efficiency and

using video conferencing to conduct

with the COVID situation much more

better prediction.

the commissioning checks. The

effectively by working closely and

OEMs’ employees in Tokyo and our

sharing our processes with them on

APM solutions, for example, can

engineers at site were able to use

our various projects.

improve processes ranging from health-

various video conferencing platforms

monitoring of critical assets, preventing

to communicate. This way of handling

The global pandemic has also presented

failures, and improving the operational

projects was unheard of in the earlier

opportunities in other parts of our

efficiency of power facilities.

phase of the industry.

operations, including our ability to access talent who can work remotely in a

One example of APM software is Black

Another example is providing training

& Veatch’s ASSET360® platform. By

and information to clients. In the

productive manner.

Narsingh Chaudhary is Executive Vice President & Managing Director for Black & Veatch’s Asia Power Business. Narsingh has leadership responsibility for the Power business in Asia/India where the company focuses on being a global solutions provider with highly skilled professionals that deliver planning, consulting, engineering, construction, program management & combined engineering, procurement and construction solutions to meet its clients’ rapidly changing infrastructure needs. Its service offerings include Conventional, Renewable, and Distributed Power Generation, Transmission & Distribution, Microgrids, and behind the meter services.

20 | POWER INSIDER VOLUME 11 ISSUE 5

In print and online

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ME 10 VOLU

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What 30 Years of Microgrid Experience Teaches Us About the Future of Energy

World Energy Day 2020 also marks 30 years of microgrid innovation and leadership by Hitachi ABB Power Grids. In fact, we’ve been working on microgrids since before there was a name for them. This experience provides us with a

Douglas Mawson, who claimed

team encountered many dangers and

unique perspective on what the last

Antarctica for Australia in the early

two members lost their lives.

three decades have meant to our

1900s. (It should be noted that

customers, our business and the

Australia is a big part of the entire

The original Mawson camp evolved

industry – and how microgrids will

microgrids tale.) This desolate,

over the next several decades into a

shape the way electricity is generated

glacial area where blizzards are

significant research operation. One

and delivered as infrastructures evolve

fierce and wind speeds often reach

of the challenges of this remote

for the future.

200 mph launched expeditions

station was the reliance on diesel fuel,

covering thousands of miles of

which was expensive to ship from

uncharted territory to yield significant

the mainland and damaging to the

breakthroughs in our understanding of

pristine environment. Eventually, the

The story of microgrids can be traced

the icy continent’s geologic and botanic

researchers looked for a better way to

all the way back to the explorer,

environments. But along the way, the

cleanly and reliably power the station.

The Past

22 | POWER INSIDER VOLUME 11 ISSUE 5

And this is where Hitachi ABB Power

available to harness the vast amount of

and stronger weather events. As

Grids comes into the story. Our team,

wind in the region. The teams worked

the generation mix on the mainland

known at that time as PowerCorp,

together to first connect the turbine

utilities changes, they will need to

was tapped to develop the first

sites, and then add this network to the

transform how they deliver power.

inverter platform system to stabilize

energy market itself.

Many remote utilities are further along

energy output at Mawson station by integrating two wind turbines to

in this transformation. Renewables

The Present

capture wind energy and convert into

are moving into large-scale grids in ways that are very similar to remote

an electric boiler. This was an entirely

Today, we power more than 200

communities like Marble Bar did 20

new concept. The system ultimately

energy storage and microgrid projects

years ago. As microgrid costs continue

brought stable, reliable renewable

around the world, with 500MW of

to decline they too will play an

heat and electricity to the station,

storage currently under management.

increasing role in changing how and

minimizing diesel use. At the same

Wide-spread renewable energy

where we source our electricity.

time, the ability to better control

adoption has changed the way we think

and manage the overall electrical

about modern microgrid applications.

supply with software was a major

New applications are driving new use

breakthrough in electrical engineering

cases for microgrids, from remote

Today’s energy transformation is

and a milestone in microgrid evolution.

regions with extreme conditions who

happening at an unprecedented

The Future

are not connected to the main grid,

pace, driving demand for flexibility in

A few years later, the same team was

to urban stadiums with critical power

overall infrastructure. There is a strong

brought on to develop a wind/diesel

reliability needs.

push across the energy network to become more energy independent,

project in Denham. This small town in Western Australia was one of the first municipalities to see the possibility of adding more wind energy to the power network to offset diesel, and became widely known as successful proof of concept in developing citywide microgrids.

...underscores Australia’s early leadership in developing a path for wide use of microgrids

moving beyond a centralized grid to a more distributed one. Our experience in microgrids shapes our vision of the future grid. One that is modular, decentralized and smaller, especially in emerging areas like commercial and industrial footprints where we are witnessing in real-time how rapidly infrastructure is evolving due to

The success of the Denham project also strengthened our relationship

According to IEA, 13% of the world

changing consumer demographic shifts

with Western Power, the state-owned

(940 million people) still do not have

and needs.

utility. Together, we were able to make

access to reliable sources of electricity,

some leapfrog advances in microgrids

and access is especially limited in

At Hitachi ABB Power Grids, we enable

for other communities, such as Coral

remote communities and regions with

grid resilience against extreme events,

Bay and Marble Bar. Western Power

extreme environmental conditions.

remove infrastructure limitations as an

built the wind farms, and PowerCorp

They also pay significantly more for

inhibitor to electric power, and enable

came in to build the controls. These

their electricity, in some cases ten

transmission and distribution to evolve

projects were subsidized through federal

times as much for equivalent electricity

into the 21st century. Microgrids provide

grants, and underscores Australia’s

from larger grids.

new solutions to our customers’ evolving needs. The microgrid concept

early leadership in developing a path for wide use of microgrids. This

Climate change has further increased

has also fundamentally changed the

collaboration also coincided with the

deployment of renewable energy

construct of how we think about our

emergence of wind turbines as a viable

as communities and corporations

power system, driving new, more

large-scale generation option. These

have issued new goals for reducing

efficient utility operations powered by

were becoming more reliable and

emissions, while combating wildfires

greater renewables.

FEATURE: 30 YEARS OF MICRGRID EXPERIENCE

IEA’s World Energy Outlook for 2020

build on our early work with Western

dream. And we’re just getting started.

underscores the value of this approach,

Power. Called the ESCRI-SA Dalrymple

Our aim for the next 30 years is to bring

as “the pace of change in the electricity

Project, a battery energy storage system

electricity to the remaining 940 million

sector puts an additional premium

(BESS) combined with smart controls

people still without access across the

on robust grids and other sources of

drastically reduced outages from 8

globe and enabling a stronger, smarter

flexibility…storage plays an increasingly

hours down to 30 minutes in its first

and greener grid for all.

vital role in ensuring the flexible

six months of operations. The solution

operation of power systems.”

also improved network reliability to

Hitachi ABB Power Grids is driving

minimize renewable curtailment,

the evolution of the grid itself. We

As a prime example, ElectraNet, a

maximize reliability, and reduce

will continue to share stories on how

distribution utility in Australia, is able to

operating costs. Revenues of the project

the innovation and learning from our

operate a virtual synchronous machine

will offset the entire capital cost within

incredible history is now shaping

to strengthen their massive network.

two years of its initiation.

its future.

This project includes over 90 MW of installed renewables—both wind and

Thirty years of innovation and

rooftop solar—to improve reliability

leadership in microgrids have provided

for the over 25,000 residents in the

electricity to communities that once

Yorke Peninsula. This also happens to

looked at reliable power as far-off

Maxine Ghavi Group Senior Vice President and Head of Grid Edge Solutions Product Group, ABB She has more than 25 years of experience holding various leadership roles in program and project management, business and market development, product management, business operations, and marketing and sales. Her experience spans the breadth of the power industry including grid edge technologies, microgrids, storage, renewables, software and semiconductors. She has held several key positions at ABB previously including Head of Market Development for Grid Edge Technologies, Program Director for Microgrids, Head of Solar Industry Segment Initiative. Prior to this, she was Head of Business Management at Oerlikon Solar, VP Sales at Voyan Technology and Sr. Product Manager at KLA-Tencor. Maxine received her bachelor’s degree in physics from San Jose State University in California.

24 | POWER INSIDER VOLUME 11 ISSUE 5

Renewable energy highlights 1 July 2020 HEADLINE FIGURES

Renewable electricity generation by energy source

6 586 TWh

In 2018, the total amount of electricity

Amount of electricity generated from renewables in 2018

TWh. Renewable hydro accounted for

6.1% Increase in renewable generation compared to 2017

1 258 TWh Increase in electricity generation from renewables since 2014

generated from renewables was 6 586 about 63% of this (4 149 TWh), followed by wind energy (1 263 TWh), solar energy (562 TWh), bioenergy (523 TWh), geothermal energy (88 TWh) and marine energy (1 TWh). biofuels; 88 TWh (17%) from biogas; 62 Bioenergy generation was divided as

TWh (12%) from renewable municipal

follows: 365 TWh (70%) from solid

waste; and 7 TWh from liquid biofuels.

Growth in renewable electricity generation

28% Increase in solar power generation compared to 2017

11% Increase in wind power generation compared to 2017

USD 21 bn Amount of public investment in renewables in 2018 IRENAâ&#x20AC;&#x2122;s renewable energy statistics can be downloaded from resourceirena.irena.org

Renewable electricity generation in

to become the third largest source of

2018 was 376 TWh higher than in

renewable electricity generation.

2017, an increase of 6.1%. Generation

Solar and wind generation in 2018

growth returned to its long-term trend,

increased by 28% and 11% respectively.

due to a recovery in the growth of

Together, these two sources of energy

hydropower. Solar and wind generation

continue to dominate growth in

continued to grow strongly, with

renewable generation, accounting for

solar overtaking bioenergy in 2018,

73% of growth since 2014.

FEATURE: RENEWABLE ENERGY HIGHLIGHTS

Renewable electricity generation by region As in other recent years, Asia

have a 20% share, followed by South

America and the Caribbean. Asia

accounted for most growth in

America (12%) and Eurasia (5%).

continued to lead in the expansion

renewable electricity generation, with

of wind and solar generation,

an increase of 219 TWh in 2018. Asia’s

In 2018, renewable hydro generation

accounting for more than half of

share of global renewable generation

expanded significantly in Asia and

all global solar generation and

also continued to increase, reaching

Europe, while contracting in North

surpassing Europe by 56 TWh in wind

40%. Europe and North America each

America, South America and Central

generation during the year.

Generation in 2018 (TWh)

Hydro

Wind

Bioenergy

Solar

Geothermal

Africa

129

Asia

1719

440

165

293

Central America + Caribbean

Eurasia

266

306

Europe

578

384

192

132

1298

North America

710

321

1226

Oceania

South America

655

794

World total

4149

1263

523

562

6586

Middle East

Marine

Total 160

2644 48

Revisions to renewable generating capacity

Renewable share of total electricity generation

Public investment in renewables

IRENA’s latest statistics include some

IRENA’s electricity data shows a

The trend in public investment in

minor revisions to the 2019 renewable

24.9% renewable share of generation

renewable energy has been revised

generating capacity reported in March

in 2018. The generation share

upwards (due to improved reporting)

2020. Total renewable generating

increased by 0.5 percentage points

and has been adjusted to real (2017)

capacity in 2019 has been revised

compared to the 2017 figure of

prices. These figures show that total

downwards by 4 GW to 2 533 GW.

24.4%. The increase in the generation

public investment reached USD 21

This is due to the inclusion of officially

share was relatively low compared

billion in 2018, which is a decrease

validated statistics for some large

to previous recent years, due to

of USD 10 billion (-31.2%) compared

countries, which has resulted in lower

comparatively high growth in the use

to 2017. This decrease is due to a few

figures for hydropower and solar

of fossil fuels for generation in Asia

large investments in 2017. IRENA, along

capacity (2 GW less hydropower than

and North America in 2018.

with the OECD-DAC, is responsible for

previously reported and 1 GW less

reporting progress on SDG Indicator

solar energy capacity).

7.a.1 on international financial flows to developing countries in support of clean and renewable energy. This subset of the data shows that international support for investment in renewables reached USD 21.4 billion in 2017.

26 | POWER INSIDER VOLUME 11 ISSUE 5

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Renewable Energy in Vietnam ASEAN: An Economic Powerhouse

28 | POWER INSIDER VOLUME 11 ISSUE 5

The combined gross domestic product

U.S.-China trade war. The continued

• A reduction in coal-fired generation.

(GDP) of the 10 member states of

growth of Vietnam’s economy has

Solar is seen as key to the proposed

the Association of Southeast Asian

been matched by an ever-increasing

increase in renewable generation

Nations (ASEAN) stands at $2.8 trillion—

demand for energy, with electricity

capacity, with Vietnam aiming to install

equivalent to ranking fifth in the world’s

consumption projected to expand

12GW by 2030.

largest economies . Although the

at an annual rate of 10–12 percent

impacts of the COVID-19 pandemic

through 2030. However, it remains to

on the region are highly uncertain at

be seen whether this will be impacted

the time of writing, the pre-COVID-19

by the inevitable aftereffects of the

The Vietnamese government, in a

expectation was for GDP to grow at a

ongoing COVID-19 pandemic.

bid to promote the goals set out in

Achieving the Targets

the Original Master Plan, issued a

projected average rate of 5.5 percent per annum across the ASEAN region. This

The primary legislation governing the

decision in November 20156 which

is certainly an attractive opportunity for

power sector in Vietnam is the Electricity

approved Vietnam’s renewable energy

foreign investment. Once we emerge

Law of 2004 (as amended) . The

development strategy up until 2030

from the COVID-19 pandemic, the key

Electricity Law requires that national

(the “Renewable Decision”) and also

to ensuring the renewed growth trend

power development master plans be

provides guidance on the strategy

in ASEAN is energy, both in terms of

established for 10-year periods. On July

through 2050. The Renewable

providing ASEAN members with the

21, 2011, the Vietnamese government

Decision provided that investors in

power needed to drive their growing

released the National Power

renewable projects would be entitled

economies and in creating opportunities

Development Plan for the 2011–2020

to those incentives already prescribed

for foreign direct investment.

period with the Vision to 2030 (the

for in existing legislation (i.e., the Law on

“Original Master Plan”). The goal of the

Investment7) such as:

In our new series, “Energy in ASEAN:

Original Master Plan was to set out a

the essentials,” we will provide an insight

strategy to secure Vietnam’s energy

into the key components of the energy

needs, while improving interconnectivity

from import duty in respect

market in the ASEAN member nations,

in rural areas and increasing the nation’s

of goods imported in order to

with a particular focus on oil and gas,

reliance on renewable sources of energy.

construct or form fixed assets as

conventional power and renewable

The Original Master Plan indicated

part of a renewable energy project,

energy. We will provide an overview of

that investment totalling $150 billion,

as well as materials, components

the regulatory landscape in the energy

in both new generation and grid

and semi-finished products

sector, as well as highlighting some of

development, was required in order to

(that cannot be manufactured

the key legal issues that prospective

keep pace with Vietnam’s rising level of

domestically), to be utilised in

investors should take into consideration.

electricity consumption.

respect of the foregoing.

All Part of a Master Plan

In March 2016, the Revised Power

investment projects for renewable

Development Master Plan VII (the

energy production will be subject

In the first of our articles, we consider

“Revised Master Plan”) was released.

to a reduced corporate income

the renewable energy industry

The Revised Master Plan provided for,

rate of 10 percent for the first 15

in Vietnam, one of Asia’s fastest-

among other things:

years of the project (compared

• Import duty relief – An exemption

• Corporate income tax – New 5

growing economies. Despite seeing its projected GDP growth falling from

with the lowest rate of 20 • Reliance on renewable energy

percent applied to companies not

6.8 percent to 4.8 percent in light of

(excluding large and medium scale

the fallout of the COVID-19 pandemic,

hydropower) to be 10 percent of

Vietnam has established itself as

total generation by 2030 (up from

Investors in renewable energy

a global manufacturing hub and is

seven percent under the Original

projects may be entitled to the

benefitting from the fallout of the

Master Plan).

following land-related incentives9:

qualifying for relief)8. • Land-related incentives –

FEATURE: RENEWABLE ENERGY IN VIETNAM

• Exemption from land use fees for

were issued by both the Vietnamese

4,550 MW, began operation in 2019,

government and the Ministry of Industry

bringing the aggregate capacity of solar

and Trade (MOIT) in an attempt to create

plants to 25,000 MW11. In doing so,

for a period of 15 years where

a clear regulatory framework to attract

Vietnam appears to have smashed

the project is located in a region

investment into the solar sector. As we

its 2020 solar target of 4,000 MW,

facing “extreme socio-economic

shall see, there are signs that this arduous

provided for in the Revised Master Plan,

difficulties.”

process may be close to conclusion, but

and has now overtaken Thailand as the

certain issues have yet to be resolved.

largest solar market in Southeast Asia12.

The Solar Decision

The rapid expansion of the solar

a period of 11 years. • Exemption from land use fees

• During the capital construction period of a project (being the period of construction of a new

sector can largely be attributed to the

building, or plant, for up to three years from the effective date of

In April 2017, the Vietnamese

implementation of the Solar Decision

the land lease contract), investors

government issued a decision that

which sets out, amongst other things,

are entitled to exemption from

had the effect of prioritising solar over

the feed in tariff (the “Solar FIT”)

land rents and water surface rents.

other energy sources in the context of

applicable to solar projects (both grid-

the Revised Master Plan10 (the “Solar

connected and roof-top based). The

The incentives detailed above were

Decision”). It is in the solar sector where

Solar FIT mandated:

designed to stimulate growth in

Vietnam has experienced the most

Vietnam’s renewable energy sector.

impressive growth in renewable energy

However, investor uptake in the wake of

capacity. In 2018, solar accounted for

solar projects of VND 2,086/kWh

the Renewable Decision was relatively

only 134MW of renewable capacity,

(excluding value-added tax (VAT)),

muted, prompting further action by

equivalent to three percent of Vietnam’s

(equivalent to $9.35/kWh).

the Vietnamese government in 2017,

total renewable capacity (excluding

specifically targeting the solar market,

large and medium scale hydropower).

to $1.00 (as announced by the State

which in turn initiated a period of rapid

Recent data published by state-owned

Bank of Vietnam on April 10, 2017).

development.

utility company Electricity Vietnam

• A power price for grid-connected

• An exchange rate set at VND 22,316

(EVN) indicates that Vietnamese solar

The Solar FIT exclusively applied to

generation in the first quarter of 2020

grid-connected projects with solar cell

surged by 28 times to 2.3 billion KWh

efficiency of more than 16 percent or

Since 2017, a significant number of

compared with the same period in 2019.

solar module efficiency of more than

decisions, proposals and circulars (as

EVN also highlighted that as many as

15 percent.

illustrated by the timeline below),

91 solar farms, with a total capacity of

Part A: The Solar Story

30 | POWER INSIDER VOLUME 11 ISSUE 5

ASEAN: AN ECONOMIC POWERHOUSE

Adjustment to the Solar FIT and the Model Solar PPA

The Draft Proposal and Revised Draft

While the Solar FIT is the same for

Returning to the Solar Decision, in

investment in the sector (the majority

both grid-connected and rooftop

addition to establishing the Solar FIT, it

of solar projects in Vietnam have been

projects, the adjustment mechanism

reaffirmed that the incentives provided

developed in the southern or central

for each is different. Adjustment of

for under the Renewable Decision would

highland provinces). Consultation

the grid-connected Solar FIT is dealt

apply in respect of solar energy projects.

between the Vietnamese government

with under the model power purchase

The Solar Decision came into force on

and various stakeholders led to the Draft

agreement (the “Model Solar PPA”),

June 1, 2017, and expired on June 30,

Proposal being revised and resubmitted

published by Circular No. 16/2017/TT-

2019. During that period (particularly

by the MOIT in September 2019 (the

BCT in September 2017 (“Circular 16”).

throughout 2019), the sector underwent

“Revised Draft”).

Adjustment of the Solar FIT for rooftop

rapid growth as developers sought to

projects, however, is dealt with by way

take advantage of the Solar FIT. The

of annual review by the MOIT (based on

expiry of the Solar FIT, however, created

the last exchange rate of the preceding

a degree of uncertainty for prospective

In November 2019, the Vietnamese

calendar year), with the adjusted Solar

investors that the MOIT sought to

government released Notification

FIT applying for the following year.

address by issuing a draft proposal to

No. 402/TB-VPCP (“Notification

split in the FIT was to promote solar power development in those regions of Vietnam that had not seen significant

Notification 402

the Vietnamese government in January

402”), which proposed a number of

In addition to publishing the Model

2018 for new Solar FIT mechanisms that

amendments to the Revised Draft and

Solar PPA, Circular 16 reaffirmed the

would apply from July 1, 2019, to June

introduced a new proposal from the

applicability of the Solar FIT to grid-

30, 2021 (the “Draft Proposal”).

MOIT to move to an auction-based system that would replace the Solar FIT.

connected and rooftop projects as originally stated in the Solar Decision. A further key aspect of Circular 16 was the requirement for solar power projects to be included in the approved provincial and national solar power development plans prior to execution. It is, therefore, critical for prospective developers to ensure that their projects are included

Incentives provided for under the Renewable Decision would apply in respect of solar energy projects

Notification 402 suggested that certain projects would still be entitled to the benefit of the existing Solar FIT, such as those ground-based projects that had already executed PPAs and would achieve a commercial operation date (COD) during 2020.

Directive 9608 and Proposal 10170

on said plans prior to entering into firm development commitments. Under the initial Draft Proposal (which As regards the terms of the Model

underwent several iterations over the

In December 2019, the Vietnamese

Solar PPA itself, there are a number

course of 2019), the MOIT proposed

government issued Directive No.

of commercial and legal issues arising

varying levels of Solar FITs, based on

9608/BCT-DL (“Directive 9608”),

from it that give investors cause

geographic region and technologies,

which instructed the provincial People’s

for concern. These concerns relate

with prices ranging from VND 2,159/

Committees and EVN, to suspend all

primarily to bankability, but we will

kWh ($6.67/kWh) to VND 2,486/

proposals for grid-connected solar

discuss these in in detail in an upcoming

kWh ($10.87/kWh). It is understood

projects pending clarification on

article in this series.

that the rationale for the geographical

the new remuneration mechanism.

FEATURE: RENEWABLE ENERGY IN VIETNAM

On December 31, 2019, the MOIT

• Solar rooftop FIT: It proposed a

issued Proposal No. 10170/TTr-BCT

reduction in the FIT for rooftop solar,

(“Proposal 10170”), which incorporated

from VND 2,156/kWh ($9.35/kWh)

the government’s proposals set out in

to VND 1,916/kWh ($8.38/per kWh).

Notification 402, as well as setting out

• Special policy in relation to Ninh

The Way Forward – Decision No. 13/2020/ QD-TTG Following hot on the heels of

the following in respect of the Solar FITs:

Thuan Province: It continued

Proposal 10170, the Vietnamese

• A new Solar FIT for grid-connected

to recognise the Vietnamese

government appears to have finally

floating solar projects of VND 1,758/

government’s special policy with

reached a conclusion regarding future

kWh ($7.69/kWh).

regard to the development of solar

development of Vietnam’s solar sector

power projects located in Ninh

with the issuance of Decision No.

land based, solar projects of VND

Thuan Province. Essentially, certain

13/2020/QD-TTg (“Decision 13”) on

1,620/kWh ($7.09/kWh).

listed projects in this province

April 6, 2020. Decision 13, which will

would be entitled to receive the

come into effect on May 22, 2020, is

Proposal 10170 also set out the criteria

existing Solar FIT (i.e., VND 2,086/

broadly consistent with the proposals

for solar projects looking to qualify

kWh (equivalent to $9.35/kWh)),

set out in Proposal 10170, with its key

for the new Solar FITs. Specifically,

provided they achieve COD prior

aspects summarised as follows:

qualifying projects had to be those

to January 1, 2021. However, those

meeting one of the following criteria:

projects would only be entitled

• A new Solar FIT for grid-connected,

• Extension of the Solar FIT: It

to receive the existing Solar FIT

provides for an extension of the

between COD and January 1,

Solar FIT for those projects that

2021. Thereafter, the projects

failed to achieve COD by June

would move to one of the new

30, 2019 (albeit reflecting the

proposed Solar FITs set out above.

proposed reduction in the Solar FIT

In addition, the right to receive the

as proposed by Proposal 10170),

between July 1, 2019, and December

existing Solar FIT will only apply

with the exception of those projects

31, 2020.

until such time as 2,000 MW

located in Ninh Thuan Province (see

• In respect of which PPAs had been executed prior to November 22, 2019. • Which had “commenced construction” prior to November 22, 2019. • Which will achieve their COD

of total accumulated capacity is

below). Decision 13 states that, in

We note that to qualify as having

installed in Ninh Thuan Province.

addition to the qualification criteria

“commenced construction,” solar

• Proposals for the implementation

set out in Proposal 10170, projects

projects had to have obtained/executed

of pilot solar auctions: In the event

seeking to obtain the benefit of

each of the following:

that a solar project does not qualify

the Solar FIT must have solar cell

for either the new or existing Solar

efficiency of greater than 16 percent,

FIT, the MOIT proposed that the

or module efficiency greater than 15

market undergoes transmission

percent. Projects not satisfying the

to an open, competitive and

conditions will have their purchase

transparent auction mechanism.

price for electricity determined by a

Under Proposal 10170, the

“competitive mechanism.” Although

Electricity and Renewable Energy

no further clarification has been

• The project’s technical design, as appraised by the relevant authority. • Construction permit (to the extent applicable). • Construction contract with the relevant contractor(s).

Agency was requested to expedite

provided on this point, we understand

Proposal 10170 went further in setting

the development of the solar

that it refers to the pilot auction

out a list of solar farms deemed eligible

auction mechanism. In addition,

mechanism (see above).

for the proposed new Solar FIT, noting

MOIT requested that EVN selected

that this list is exclusive of solar farms

one potential project location for

qualification: It classifies rooftop solar

located in Ninh Thuan Province (please

launching a pilot solar auction in

power projects as follows:

see below). Proposal 10170 also

accordance with relevant legislation,

• Projects selling all, or part, of their

addressed a number of other key issues

with the pilot auction to be launched

electricity production to EVN.

relating to solar projects, namely:

during the course of 2020.

32 | POWER INSIDER VOLUME 11 ISSUE 5

• Criteria for rooftop Solar FIT

• Projects selling all, or part, of their

Hitachi ABB

FEATURE: RENEWABLE ENERGY IN VIETNAM

electricity production to other

Thuan that achieve COD prior to January

Conclusion: The release of Decision 13

purchasers not directly connected

1, 2021 (as provided for in Proposal

is a welcome development in Vietnam’s

to the EVN grid.

10170) provided that:

solar power sector and, to a certain extent,

• Total installed capacity in the province

helps to alleviate a number of developer

This is an interesting development as, previously, rooftop projects were

does not exceed 2,000 MW. • Such projects have been included

concerns (primarily regarding the extension of the Solar FIT). However, we anticipate

restricted to selling their electricity

in the national/provincial power

that further clarification will be required

solely to EVN. With the implementation

development plans.

in order to address a number of matters,

of Decision 13, small-scale rooftop

particularly the prospective pilot auction

developers now have the flexibility to

Projects located in Ninh Thuan that fail

mechanism. The limited term of Decision

sell to other purchasers not directly

to achieve COD prior to January 1, 2021,

13 (until December 31, 2020) indicates that

connected to the grid and should,

will receive an FIT to be determined by

the Vietnamese government foresees the

in theory, have the right to do so on

a “competitive mechanism” and, again,

competitive bidding model as the future

negotiated contractual terms rather than

we understand that this relates to the

for the solar market.

the terms of the Model Solar PPA.

auction mechanism described above.

Part B: Wind on the Rise? In order to qualify for the new rooftop

Other Points to Note: With over 3,000 km of coastline

Solar FIT (again, as proposed in Proposal 10170), projects must satisfy the

• Sellers and purchasers: Previously,

and a monsoonal climate, Vietnam

following criteria:

the Solar Decision mandated

is considered a prime candidate

• Have been directly connected to the

that EVN be the sole off-taker of

for wind energy development. The

electricity generated by solar power

Revised Master Plan envisages 800

• Have sold electricity to EVN.

projects. However, Decision 13

MW of wind-generated capacity being

• Have achieved COD, and had

appears to offer a new approach

installed by 2020, 2 GW by 2025 and

verified meter readings, in the period

that contemplates sale to parties not

increasing to 6 GW by 2030. In 2019,

between July 1, 2019 and December

forming part of the EVN group. This

the Vietnamese government approved

31, 2020.

should, in theory, break the monopoly

the preparation of a feasibility study

held by EVN and help to further

for a proposed offshore wind farm

develop Vietnam’s electricity market.

project in an area off the cape of Kê

EVN grid.

In the event that a project does not satisfy the conditions set out above,

• Model Solar PPA: Decision 13

Gà, in Binh Thuan province, South

then the purchase price for the electricity

reaffirms that, for sales to EVN,

Vietnam. In the event that the project

shall be as agreed between the parties.

project investors must execute a

completes, it would be, at the time of

Such sale arrangements do not appear

PPA with EVN based on the Model

writing, the world’s largest offshore wind

to require use of the Model Solar PPA,

Solar PPA, for a fixed term of 20

farm with a capacity of 3,400 MW.

but we anticipate further clarification

years from the COD and with

U.K. renewable developer Enterprize

from the Vietnamese government in this

the ability to extend subject to

Energy is leading the project, along

regard. Note that the existing maximum

the agreement of the parties. For

with Vietnamese partners Petroleum

capacity of 1 MW and voltage of 35kV

projects in which the purchaser is

Equipment Assembly & Metal Structure

will continue to apply in respect of

not an EVN group company, the

and Viet Nam-Russia Oil and Gas Joint

projects looking to obtain the benefit of

parties are, apparently (and as

Venture (known as “Vietsovpetro”),

the rooftop Solar FIT.

highlighted above), permitted to

which has been engaged to undertake

freely negotiate the price, terms

design, construction and installation of

Ninh Thuan Province Policy: Decision

and conditions of the supply and

the offshore infrastructure, as well as

13 continues the “special policy” relating

purchase of electricity. However,

connection to the transmission grid.

to Ninh Thuan province. Consequently,

we expect the government to issue

the existing Solar FIT of $9.35/kWh will

further guidance in this regard.

continue to apply to projects in Ninh

34 | POWER INSIDER VOLUME 11 ISSUE 5

The feed-in tariff applicable to wind energy projects in Vietnam (the

ASEAN: AN ECONOMIC POWERHOUSE

FEATURE: RENEWABLE ENERGY IN VIETNAM

However, there are signs that this lack of clarity may be about to change. Earlier this month, the MOIT submitted a proposal to the Vietnamese government to extend the existing Wind FITs to the end of 2023 from the original expiry date in November 2021. Despite not having seen the proposal, we understand that the MOIT has proposed moving to an auction-based mechanism.

The Model Wind PPA The first standardised power purchase agreement for wind power projects “Wind FIT”) was initially implemented

The Wind FITs set out in Decision 39

in Vietnam (“Model Wind PPA”) was

by Decision No. 37/2011/QD-TTG

apply to all on- and offshore wind

issued with Circular No. 32/2012/

(“Decision 37”). On September 10,

projects achieving a COD prior to

TT-BCT (“Circular 32”) in 2012, which

2018, the government issued Decision

November 1, 2021. It is unclear whether

sets out the regulations relating to the

No. 39/2018/QD-TTG (“Decision 39”),

the Vietnamese government intends

development of wind power projects

which provided for an increase in the

to introduce new Wind FITs post-

in Vietnam. A key aspect of Circular 32

Wind FIT and separate Wind FITs in

November 2021 or move to an auction-

was the requirement for the General

respect of onshore and offshore wind

based mechanism as now appears

Directorate of Energy to establish a list

projects as follows:

likely for solar. This creates a degree of

of wind power projects to be permitted

• Onshore - VND 1,928 /kWh

uncertainty for wind projects, such as

for development over the next five

Kê Gà, which is not expected to achieve

years and submit the same to the MOIT

COD until 2027 .

for approval. It is, therefore, critical

($8.5/kWh). • Offshore - VND 2,223 /kWh ($9.8/kWh).

for prospective developers to ensure that their projects are shortlisted prior to entering into firm development commitments. The terms of the Model Wind PPA caused concern among international developers, as well as the

36 | POWER INSIDER VOLUME 11 ISSUE 5

ASEAN: AN ECONOMIC POWERHOUSE

local business community. One issue

were made homeless) are leading some

could be developed with relatively low

of key concern is the bankability of the

countries to focus on other, less intrusive

capital investment (approximately $30

PPA from a project-finance perspective.

sources of renewable energy. Indeed,

million) and taking only around two

The Vietnamese government recently

it is worth noting that the Revised

years to complete. However, micro-

attempted to address certain of

Master Plan does not focus on the

hydropower projects (e.g., capacity less

these concerns by issuing Circular No.

development of large-scale hydropower

than 1MW) are likely to support only

02/2019/TT-BCT (“Circular 2”), which

as a renewable source of energy to be

small rural communities and, as such,

amended the Model Wind PPA, as well

prioritised for development, but does

are considered less bankable15.

as specifying the procedure for the

promote an increase in capacity to

negotiation and execution of PPAs for

21.6GW in 2020 and approximately

wind power projects in Vietnam. We will

27.8GW by 2030, through small,

consider the Model Wind PPA alongside

multipurpose projects.

Counting on Coal? Notwithstanding the goals set by the Revised Master Plan and

our analysis of the Model Solar PPA in an The anchor hydropower project in

undoubted advances made in the

Vietnam is the 2.4GW Son La plant,

field of renewables, Vietnam remains

located on the Da River approximately

heavily reliant on coal-fired power

340km northwest of Hanoi. The plant

generation. While the Revised Master

Historically, hydropower has been

was completed in 2012 and is capable of

Plan sets a clear objective to reduce

the key source of renewable energy

generating up to 10 billion kWh per year,

Vietnam’s dependence on coal-fired

in Vietnam. In the International

making it the largest hydropower plant in

generation, the reality is that, in 2020,

Hydropower Association’s 2019 report,

Southeast Asia.

49.3 percent of the country’s capacity

upcoming article in this series.

Part C: Looking Ahead

Vietnamese hydropower capacity

will still be generated from coal-fired

(including large-scale) was estimated at

Vietnam, it appears, is not alone

power stations. By 2030, coal’s share

16.68GW (believed to have increased

in moving away from large-scale

of generating capacity is forecast

to almost 18GW at the time of writing),

hydropower to small scale, as

to increase to 53.2 percent16, with a

making it the fourth largest in the

evidenced by a 2017 study undertaken

number of new coal-fired power plants

Asia-Pacific behind China, Japan and

by the United Nations and the

earmarked for development.

India. However, concerns regarding the

Singapore-based Development Bank

impact of large-scale hydropower on the

of Singapore14. The report identifies

As highlighted above, Vietnam has been

environment and local communities (for

that the ASEAN region held some

undergoing a period of rapid growth that

example, the 2018 Xe Pian-Xe Namnoy

of the best-untapped hydropower

(notwithstanding the immediate impact

hydropower dam collapse in Laos, where

potential in the world and that small

of the COVID-19 pandemic on demand)

at least 40 people died and thousands

(e.g., 6-7MW) hydropower projects

is expected to continue over the course

FEATURE: RENEWABLE ENERGY IN VIETNAM

of the next decade. When power

of 2020 in order to take advantage

consumption hit a record 36,000

Over the past two years, Vietnam has

of the apparent extension of the

MW in May 2019, close to the then-

demonstrated significant progress in

Solar FIT. Focus on the wind sector is

maximum capacity, the government

promoting renewable energy but it

expected to increase, but this is likely

requested that consumers reduce

remains to be seen whether the nation

to be dependent on the government

air-conditioning usage in order to help

is capable of fulfilling the goals set out

softening its stance in respect of

avoid blackouts . Vietnam will need to

in the Revised Master Plan by the June

amendments to the Model Wind PPA.

develop additional capacity quickly and

2020 deadline. In addition, as far as

cost effectively in order to ensure that

Master Plan VIII is concerned, it also

economic development is not derailed

remains to be seen whether renewables

in the long term. The likelihood is that

can take center stage in Vietnam’s

much of the required new capacity will

power market over the course of the

be derived from coal, and the Revised

next decade.

Master Plan contemplates this.

1. U.S. – ASEAN Business Council, Inc., “Growth Projections,” July 22, 2019. 2. The World Bank – The World Bank in Vietnam, October 18, 2019. 3. Law No. 28/2004/QH11 on Electricity, December 3, 2004, as

Continued reliance on coal and investor

amended.

However, it remains to be seen whether

concerns in relation to bankability

4. Decision No. 1209/QD-TTg.

government policy will continue to

regarding the Model Wind and

5. Decision No. 428/QD-TTg.

support new coal-fired generation when

Solar PPAs are key inhibitors to the

6. Decision No. 2068/QD-TTg.

the eighth power master plan (“Master

development of the renewable sector

7. Law No. 67/2014/QH13.

Plan VIII”) is released. In an interview

in Vietnam. These issues need to be

8. PwC, Vietnam, “Corporate – Tax

with the Vietnam News Agency in

addressed in order for the country to

September 2019, Nguyên Manh Cuòng,

move forward and attract the level

an official from the Institute of Energy’s

of investment required to develop

Regulations on collection of land

Department of Electrical System

enough renewable capacity to meet its

rent and water surface rent.

Development under MOIT, commented

increasing demand for energy.

that while the Revised Master Plan

Credits and Incentives.” 9. Decree No. 46/2014/ND-CP,

10. Decision 11/2017/QD-TTg. 11. VnExpress, “Solar power generation

relied “heavily on traditional power

Nevertheless, we see significant

sources such as hydropower, thermal

potential in the Vietnamese renewables

12. Ibid.

power, and gas turbines”, Master Plan

market, and the nation certainly appears

13. Eco Business, “Gusty growth:

VIII will be the “the electricity plan

to be demonstrating its commitment to

of the renewable energy era.” With

the sector by the significant advances

details of Master Plan VIII not yet

made, particularly in respect of solar,

published, prospective investors are

over the course of 2019. We expect the

“Green Finance Opportunities in

likely to be paying close attention to

solar development story to continue,

ASEAN,” November 2017.

whether the government intends to

perhaps at a somewhat reduced pace,

15. Ibid.

reduce reliance on coal and introduce

following clarification of the new

16. Decision No. 428/QD-TTg.

further incentives for the development

remuneration mechanism, along with a

17. Reuters, “In Vietnam’s booming energy

of renewables.

drive from existing projects to achieve

their respective CODs prior to the end

surges 28 times”, 14 April 2020.

Vietnam’s remarkable wind energy story,” November 19, 2019. 14. DBS and UN Environment Enquiry,

sector coal reigns, but renewables play catch-up,” May 24, 2019. 18. Viet Nam News, “Power Development Master Plan 8 focuses on renewable energy,” September 28, 2019.

38 | POWER INSIDER VOLUME 11 ISSUE 5

Industry seeks to replicate Taiwan wind success throughout Asia Opportunities to invest in offshore

offshore wind market will develop in

together with a limited number

wind energy developments are being

Asia over the next decade.

of Taiwanese commercial banks.

created by government measures

However, Taiwanese government

Beyond offshore wind in Taiwan

from Japan to India After their success in Europe and

policy mandating greater local content requirements for offshore wind projects, together with the

more recently in Taiwan, sponsors and

Taiwan has enjoyed great success

trend towards a lower feed-in tariff

international financiers are looking

in its offshore wind programme

(FiT) and difficulties with liquidity in

to other emerging markets in Asia to

and, until recently, the market

local currency, will increasingly drive

expand their offshore wind footprint.

was dominated by international

developers to seek new opportunities

There are a number of key factors

sponsors and international lenders

elsewhere in Asia.

and trends that will influence how the

able to lend in local currency,

FEATURE: TAIWAN WIND SUCCERSS

New Asian markets

with local player Phu Cuong Group,

from its Greater Changhua 2b and

Opportunities in Japan, South Korea,

has submitted an application for

4 offshore wind developments in

Vietnam and India are attracting the

a 1GW offshore wind project in

Taiwan under what is reported to

greatest interest for new offshore

Vietnam, adding to the 400MW

be the world’s largest offshore wind

wind projects in the region.

for which it received its Power

corporate PPA.

Development Plan approval in June Japan has a target to install a total of

2020 and which is expected to start

Project parties will, however, need

10GW of offshore wind capacity by

construction in the third quarter of

to remain mindful of issues such as

2030 and has enacted legislation to

2021. Another example is UK-based

the creditworthiness of the corporate

take steps to meet this target. In July

wind developer Enterprize Energy,

offtaker, the size of the offtake and

2020, the government nominated four

which revealed plans to develop a

the duration of the corporate PPA,

offshore wind zones and launched the

3.4GW offshore wind farm in Thang

which would all be subject to scrutiny

country’s first offshore wind auction for

Long and received its site survey

from a bankability perspective.

a floating offshore wind farm off the

licence in June 2019.

coast of Goto City.

Also, there remain regulatory hurdles

In its Renewable Energy 3020

India also has significant potential.

in some jurisdictions to entering into

Implementation Plan announced

The World Bank’s Going Global

corporate PPAs, either due to licensing

in 2018, South Korea set a target

report estimates that India has

issues for generation/distribution

of installing 12GW of offshore wind

potential for 112GW of fixed and

or restrictions on wheeling where

capacity by 2030, which is critical to it

83GW of floating offshore wind. The

the power purchaser is not directly

achieving its own net-zero emissions

World Bank, through its Offshore

connected to the source of the

target by 2050. According to the

Wind Development Program, is

renewable energy via a private wire

Global Wind Energy Council, South

in discussions with the Ministry of

connection, but is instead taking

Korea has 132.5MW of offshore wind

New and Renewable Energy and

power from the national grid.

capacity installed and has floating

Solar Energy Corporation of India to

offshore wind projects in development.

develop a demonstration project off

In Vietnam in particular, there have been

the coast of Tamil Nadu in the next

a number of new regulations which are

two years.

designed to promote the growth of

According to the 2019 World Bank report Going Global: Expanding Offshore Wind to Emerging Markets,

renewable energy projects and enable

Corporate and virtual PPAs

Vietnam has the potential for 261GW

corporate offtake, but it is a dynamic and fast-evolving market currently in terms

of fixed and 214GW of floating

As the offshore wind market matures

offshore wind. The current FiT

in Asia and companies and industrials

regime, offering a 98¢/kWh tariff to

seek opportunities to offset their

In the future, we also expect

offshore wind projects that achieve

carbon footprints to meet their

increasing demand for virtual PPAs.

commercial operation by November

environmental commitments and

These are essentially a financial

2021, has been extended to

satisfy their investors, we expect to

contract between the generator and

December 2023 to generate interest

see developers increasingly enter

the corporate offtaker that exchanges

among international sponsors.

into corporate power-purchase

variable cash flows derived from the

agreements (corporate PPAs) in

electricity market price and renewable

To tap in to the full potential of

respect of the electricity from

credits for fixed price cash flows.

offshore wind generation in Asia, it

offshore wind farms, building on a

This is particularly likely where the

will be necessary to focus efforts

trend seen in Europe.

generator’s main offtake is based on

on developing and utilising floating

variable market pricing rather than a

offshore wind technology

Denmark’s Orsted is leading the way,

For example, the UK’s Mainstream

having already concluded a deal to

Renewable Power, in a joint venture

supply Taiwan’s TSMC with power

40 | POWER INSIDER VOLUME 11 ISSUE 5

of the regulatory framework.

fixed tariff.

INVESTING IN OFFSHORE WIND ENERGY DEVELOPMENTS

Leveraging oil and gas supply chains

their experience in Europe in order

development of offshore wind projects

to do so. For example, JERA, Japan’s

in order to mitigate curtailment risk and

largest utility company; ADEME

facilitate grid balancing, and to further

Various elements required for

Investissement, a 100pc French

maximise revenue.

offshore wind development,

state-owned investment company

including foundation and substation

aimed at financing innovative

We expect that a number of pilot

development, use of installation vessels

infrastructure projects; and IDEOL, a

projects will be developed in Japan

and subsea cabling, can leverage

global developer of floating offshore

and/or South Korea before these

existing capabilities already well

wind technology, have agreed on the

hydrogen production facilities are

developed by the offshore oil and gas

key terms for the establishment of

scaled up, once a market for hydrogen

sector in a number of Asian countries.

an investment vehicle dedicated to

is developed. Hydrogen demand

financing the development phase

is already growing in the region,

A critical aspect of this is being able

of at least 2GW of floating offshore

often with political support from

to use foreign flagged vessels and

wind projects.

governments. An illustration of this is

crew in these new markets. Japan has

that a number of Japanese companies

strict cabotage regulations for foreign

This is particularly relevant for Japan,

have formed the Kobe/Kansai

flagged vessels being used for offshore

where fixed foundation offshore wind

Hydrogen Utilization Council with a

wind farm construction. However, the

projects are not suitable given the

view to pursuing large-scale utilisation

Japanese government is looking to ease

water depths of a large number of areas

of hydrogen in the 2030s.

such restrictions to promote offshore

identified for offshore wind development.

Policy support

wind energy development. South Korea is also a key market South Korea already has significant

for floating offshore wind. For

Opportunities in the offshore wind

shipbuilding and cabling expertise

example, Total and investment bank

sector in Asia will continue to

through the likes of Samsung and

Macquarie’s Green Investment Group

increase and expand to new markets,

Hyundai and may be able to support

have concluded a 50/50 partnership

provided that policymakers follow

supply chains in the region by

to develop a portfolio of five large

through on their commitment to

promoting the manufacture of offshore

floating offshore wind projects

reduce carbon emissions and provide

wind installation vessels domestically.

in South Korea with a potential

and procure, where necessary, the

cumulative capacity of more than 2GW

levels of government support and

In respect of other countries, such

while Norway’s Equinor, Korea National

regulatory reform required to facilitate

as Vietnam, it may be necessary to

Oil Corporation and Korea East-West

the development and financing of

see greater investment in the local

Power have also formed a consortium

offshore wind farms, particularly in

onshore infrastructure and supply

to develop a 200MW floating offshore

the emerging markets.

chains to support the growth of the

wind farm off Ulsan. Floating offshore

offshore wind industry in order to

wind provides an opportunity for

We expect developers to continue

capitalise fully on the opportunity.

traditional oil and gas players, many of

to harness experience acquired in

which are now diversifying as part of

Europe and, more recently, in Taiwan,

the energy transition.

to not only develop offshore wind

Floating offshore wind

projects in new Asian markets but also To tap in to the full potential of

Green hydrogen

offshore wind generation in Asia, it

expand into new areas as the energy transition continues to drive progress

will be necessary to focus efforts

In the longer term, we anticipate that

on developing and utilising floating

developers will increasingly pursue

offshore wind technology to access

green hydrogen production, generated

deeper coastal waters. We expect

from renewable electricity powered

that a number of players will use

electrolysis, in parallel with the

towards net-zero carbon emissions.

The trillion-dollar question: how will Asia Pacific meet power supply needs in the next decade? Investment opportunities in the world’s largest and fastest-growing power market With analysis from Alex Whitworth, Head of APAC Power and Renewables, and Rishab Shrestha, Senior Research

What will the power mix look like over the next decade?

and conventional fuels will still be required to meet demand. Many growth markets continue to

Analyst, APAC Power, Wood Mackenzie Power demand in Southeast Asia will

rely on coal. Historically, gas has been

Asia Pacific is a global engine of

grow the most rapidly at 5% per year

the more expensive energy source

power demand and renewables

in the next decade. However, China

in Asia, but as economies develop

growth, putting it centre stage in

and India will dominate in scale.

gas investments will start to overtake

the global energy transition despite

Despite lack of demand growth,

those of coal. By 2030, 70% of the

coronavirus impacts.

Japan is set to be the third largest

investment dollars earmarked for

market for capacity investments.

fossil fuels will go to gas.

market will attract US$1.5 trillion

To accommodate growing demand,

of investment in the next 10 years,

huge investments will need to be

making it the biggest global market

made. Renewables represent a US$1

Will there be major bottlenecks for renewable power investment?

by a significant margin. Its growth will

trillion opportunity through to 2030.

Yes. But the impact varies widely

outstrip all other regions combined in

A broadening array of solar and wind

by region.

the next two decades.

technologies is attracting investment

The Asia Pacific power generation

– but in the short term, solar will dip as

Phenomenal growth in Asia Pacific’s

Renewables will attract the largest

government subsidies are cut. Energy

power market in the last five years

chunk of that investment. But that

storage capacity will take centre stage

gave global investors the confidence

does not signal a death knell for fossil

in the 2020s as its share of peak load

to put money into new projects.

and conventional fuels.

more than doubles to 9%.

Falling generation costs of solar and wind combined with government

We explore three key questions

While renewables will make up

subsidies provided a further boost.

about the opportunities in Asia

more than half of the capacity

However, the market is now entering

Pacific’s power market.

that will be added by 2030, coal

a transition decade.

42 | POWER INSIDER VOLUME 11 ISSUE 5

As the scale of renewable investments has increased, governments are moving to reduce or cancel their subsidies. Overall investments are set to decline with growing uncertainty on revenue streams in some key markets. In As the scale of renewable streams in some power key markets. In of renewables will most of Asia, subsidy-free renewable won’t be 2030, ablethe tocost compete with investments has increased, most of Asia, subsidy-free renewable be competitive with new fossil fuel coal until 2025 or later. governments are moving to reduce

power won’t be able to compete with

plants in most regions, creating

or cancel their subsidies. Overall

coal until 2025 or later.

incentives for further rapid growth.

But technology and policy drivers will gradually strengthen, and by 2030, the investments are set to decline with But technology and policy drivers cost ofuncertainty renewables will be competitive with new growing on revenue will gradually strengthen, and by fossil fuel plants in most regions, creating incentives for further rapid growth.

The transition transition decade willwillHow neglected previously. Although those could it takeof to overcome The decade belong a period uncertainty. be a period of uncertainty.

those challenges? And how could

opportunities are relatively small

government policy adjust?

scale, they have the potential to be

A renewables champion to date, Australia illustrates many of the challenges that lie ahead. Renewables’ share of power supply in

extremely profitable.

Which untapped areas offer the greatest potential?

the country increased rapidly from 9

Meanwhile, the biggest future opportunities are appearing in industrial demand centres, which make up

The slowdown in the next decade will not

approximately 60% of Asia Pacific power

impact all regions equally.

demand. Until now, several large demand

But the pace of growth has

Countries such as Australia that already

centres in coastal regions have struggled

saturated existing grid capacity and

have a high share of wind and solar power

to access renewable power despite

transmission infrastructure hasn’t

are experiencing constraints. But at the

high power prices. But new advances in

kept up. Execution delays have

same time there is massive potential in

offshore wind and distributed solar along

increased costs, which chipped away

the 80% of Asia Pacific regions have less

with supportive government policies

at returns.

than 10% renewables penetration.

will allow renewables growth in these

to 21% in just five years.

locations to take off. As a result, 67% of Australia’s capacity

Many smaller regions especially in

deployment will fall away by 2025.

developing countries have been

Karpowership

www.karpowership.com 44 | POWER INSIDER VOLUME 11 ISSUE 5

power for asia

Climate Investment Platform: Plugging the Energy Investment Gap in Developing Countries

Access to renewable energy finance

more inclusive economic participation.

remains a key challenge for developing

Investment needs in sub-Saharan

nations. While many countries

Africa alone are estimated at USD 105

across Africa, Asia and Small Island

billion per year to 2050, to align with

Developing States remain highly

development objectives and climate

disadvantaged by a lack of adequate

goals.

energy infrastructure, they are presented with a unique opportunity

“To date, IRENA’s CIP activities have

to realise profound and lasting

resulted in more than 180 project

socioeconomic benefits from the

financing applications and 50 active

transition to renewables.

partner pledges of support”

The relative speed of progress in developing countries towards a

The Climate Investment Platform

low-carbon energy system has been

launched by IRENA, together with

modest, however – compromising

SEforAll, the UNDP and in cooperation

the achievement of sustainable

with the Green Climate Fund (GCF),

development and the realisation of

blends the capabilities and resources

key economic objectives, such as

of the four partner organisations to

improved energy security, greater

address – and unlock – investment

energy independence, job creation and

needs in developing countries, in turn

FEATURE: HYDRO POWER INVESTMENT

IRENA and Climate Investment Platform partners are working closely to advance renewables deployment efforts in developing countries initiating a step change in their pursuit

proponents to bolster proposals, while

on the Agency’s understanding of the

of low-carbon energy ambitions.

facilitating matchmaking between

products, risk appetite, geographic

The Partners support countries with

projects and suitable investors under

scope and eligibility criteria of partners,

target setting, the establishment

the facility.

IRENA works to steer projects towards

of an enabling legal and regulatory

partners whose criteria align with the

environment, and development of

The barriers to increased capital flows

risk mitigation measures to encourage

in developing markets are many.

capital flows.

Challenges such as the limited capacity

One example is the Platform’s work

of local developers to produce investor

with Spanish development bank

While IRENA supports all components

ready projects, weak investor appetite

COFIDES – a registered CIP partner

of this work, the Agency currently has

for early stage development risk and

- working with the IRENA project

a particular focus on risk mitigation and

the absence of enabling policies and

facilitation team under the framework

project facilitation. To date, IRENA’s

regulatory frameworks, are just three of

of CIP. COFIDES has agreed to provide

CIP efforts have resulted in more than

the areas in which CIP works to develop

concessional loans to eligible small

180 project financing applications and

tailored, country specific solutions. And

and medium-scale off-grid projects

more than 50 active partner pledges of

these activities are already underway.

across countries in sub-Saharan Africa,

support. The aim of the Platform is to

features of the project”

sourced from the CIP pool of projects.

connect projects with available climate

“IRENA’s central role as a facilitator

The projects include a solar energy

capital by working closely with project

of this process is essential. Drawing

platform initiative in Burkina Faso, the

46 | POWER INSIDER VOLUME 11 ISSUE 5

ATTRACTING INVESTMENT IN HYDRO POWER

IRENA’s central role as a facilitator of this process is essential.

electrification of 36 villages in Senegal,

to build more investor ready project

proponents and governments, with the

and the distribution of 20,000 solar

proposals. Similarly, the large and

financial partners to identify areas of

irrigation kits in Benin, to name a few.

growing pool of partners convened

cooperation, as well as strengthen the

under the platform has access to

ability of decision-makers to develop

IRENA’s central role as a facilitator of

a consolidated and streamlined

strong enabling environments for

this process is essential. Drawing on

pipeline of financing opportunities in

renewable energy investments.

the Agency’s understanding of the

developing countries – many of whom

products, risk appetite, geographic

are supported by IRENA at policy as

The Investment Forums will be

scope and eligibility criteria of partners,

well as risk mitigation level.

organised around 14 regional clusters

IRENA works to steer projects towards

allowing activities to be adjusted to

partners whose criteria align with the

What next for the CIP?

the specific needs of countries. The

features of the project – saving both

Under the framework of the CIP,

clusters are built around five sub-

time, and money.

work is ongoing to support project

regions in Africa, four in Asia and two

development despite delays to the

in Latin America together with specific

Supporting the development of

planned Investment Forums due

clusters for the Caribbean, Pacific

bankable projects also transfers

to the COVID-19 pandemic. From

islands and Southeast Europe.

important skills to developers in

early next year, IRENA will host a

countries across the global South that

series of regional Investment Forums

will have a lasting effect on their ability

designed to connect registered project

Grundfos is celebrating 75 years of developing water solutions that have changed industries, people and the environment. Here, Kim Jensen, regional managing director for the company’s Asia Pacific division, reflects on it’s history and shares upcoming plans. Kim Jensen, regional managing director for

Since its inception in 1945, Grundfos

The challenge has always been to draw

has set the standard thanks to its core

on this heritage to continue to respond

principles of innovation, efficiency,

to economic and environmental

reliability and sustainability. Its first

changes by innovating to meet

product, the Foss 1, nicknamed the ‘pig’

customer expectations.

Grundfos’ Asia Pacific division.

because of its design, was devised by founder Poul Due Jensen because he

Water management

could not find a suitable pump for a small automatic waterworks his die-

In today’s market, climate change, new

casting company was working on.

economic realities and population growth are making water management

We have never looked back as we

more complex. South East Asia

continually refer to our principles

faces the severe threat of flooding;

with innovation and sustainability

a Grundfos and Eco-Business study

as the driving force. We introduced

conducted in 2017 revealed that 70%

our first solar driven pump system in

of business sustainability practitioners

1982, which won the United Nations

predicted their home country will

Development Programme solar pump

continue to face extreme weather

system competition followed by

events over the next decade.

Grundfos’ first pump, the Foss 1, was nicknamed ‘the Pig’ due to its appearance.

the SQFlex system that can run on solar or wind energy and is ideal for

At the same time, the region is

remote areas that lack access or have

facing threats to its water security.

unreliable power supply.

Demand for water is soaring alongside population growth and economic

In 1991, Grundfos became the first

development, while challenges such

pump company to introduce integrated

as increasing droughts in Asia and fail-

electronics in its products. The launch

ing water infrastructure mean we are

of micro frequency converter X99 in

losing more of this precious resource.

TPE3 is a dry-runner, vertical, in-line pump used as the primary pumps in the distributed pumping system.

the circulator pump UPE, made it the first intelligent pump in the world and

These macro environmental and

resulted in major energy savings. This

demographic challenges have shaped

marked the beginning of Grundfos’

how businesses, including Grundfos,

digital solutions, which most recently

devise and create new products for

MAGNA3 is a wet-runner circulator used

led to the launch of the iSOLUTIONS

evolving needs. As a result of these

as the secondary pump in the distributed

range of intelligent products in 2017.

challenges, we are looking to harness

48 | POWER INSIDER VOLUME 11 ISSUE 5

pumping system.

digital technology, automation

operation and maintenance. Grundfos’

especially with advances in membrane

technologies and big data to reduce

long expertise in water management is

technology making it increasingly

both financial and environmental costs

also helping to solve China’s immense

possible to recover valuable by-

in water systems.

Sponge City water challenges which

products, energy and water for reuse

have involved the construction of flood-

from industrial waste-waters.

Over the last 75 years, municipal

resilient urban areas.

and industrial infrastructure has

Technology can now conduct pre-

changed beyond recognition. In recent

Along with the issue of flooding, cities

emptive and predictive maintenance of

decades, the Asia Pacific region has

face the problem of leakage in their

an entire system and it is in areas such

seen unprecedented urbanisation and

water infrastructure, causing up to 70%

as this where development is expected

population growth. It is expected that

of pumped water to be lost in some

to accelerate in the next ten years.

by 2030, two out of three people will

cases. This is because constant pressure

live in a city. With this growth comes

on pipes and other components in the

an urban environment that presents its

water system gradually leads to wear

own issues and challenges.

and tear and ultimately significant

Intelligent technology can predict

damage.In response, Grundfos has

changes in demand and control

developed Demand Driven Distribution,

relevant devices and parameters

an intelligent water management

to ensure operational optimisation

Highly urbanised cities are more

pumping solution which automatically

and energy efficiency. At the same

vulnerable to flooding as the concrete

adjusts water flow using remote sensors

time, data can help increase public

architecture leaves little opportunity

and reduces excessive pressure in the

awareness of water issues and

for natural drainage, in turn causing

pipes. This in turn limits leakages and

strengthen conservation efforts on the

overwhelming stress on the municipal

losses, minimising cost and energy.

demand side. For example, a study

Urbanised cities

drainage system and a need for most of the water to be pumped away.

Energy efficiency

by Singapore’s national water agency,

Increased awareness

PUB and the National University of Singapore found that a person could

Grundfos provides a wide range of

his innovation is an example of a

save up to five litres of water a day

solutions including flood control

cutting-edge solution addressing a

using smart shower devices.

pumps which can be engineered

growing modern-day problem. Over

to specific localities. This is an area

the past ten years, innovations in the

In the face of growing water demand

where our 75 years of expertise in

water sector have led to an increased

amidst rapid urbanisation, we expect

the field becomes highly significant.

awareness of the water, energy and

the water industry to greatly increase

We can draw on a history of technical

waste nexus, with a focus on increasing

its adoption of intelligent technology

knowledge, industry leadership and

water production while reducing energy

in ‘smart cities.’ This will play a key

innovative product development

consumption and waste generation.

role in establishing interconnectivity

to produce the pumps and control

across a city’s water management

solutions to cope with the heavy

Significantly, it is no coincidence that

systems, applying advanced analytics

demands of flood management.

Asia is one of the company’s most

to spot trends and patterns and make

important markets and Grundfos is

predictions. These can range from

For example, in Indonesia, Grundfos

investing heavily in this key market

weather alerts to adapting water

installed smart technology that

for the future. Demand for water

pressure based on reported water

protects the local community from

will continue to increase particularly

usage data.

flooding without the traditional space

as emerging markets experience

requirements for a pumping station,

explosive population, GDP and

Projects like the Sponge Cities in China

floodgate and reservoir. Combining

infrastructure growth.

are already looking at ways to manage

floodgates and axial flow pumps provides

water intelligently and we expect that

a ‘Pump Gate’ on an existing waterway,

Water and wastewater treatment

market to develop significantly in the

relieving flood pressure with easy

have evolved in the past decade,

next decade. A key trend we are seeing

FEATURE: gRUNDFOS

in the region is green buildings with

systems often use a high level of

time of controlled E-pumps compared

sustainable cooling. With the onset

energy due to issues which include

to the earlier IE3.

of climate change and our natural

over-pumping to compensate for

resources dwindling, it has become

discrepancies between the chilled

imperative for us to examine how we

water supply and return temperatures.

can reduce the impact of our built

As temperatures are rising across

Our way of tackling these challenges is

environment, especially in the face of

the world, there is a greater focus on

not just to provide high-quality pumps

rapid urbanisation.

sustainable cooling in cities that use

with cutting-edge technology, but to

energy efficiently and do not contribute

take a partnership approach where

Addressing sustainability

further to climate change.

we work closely with government and

However, green buildings go beyond

Innovation has always been vital to

in energy efficiency and sustainability.

planting trees and incorporating

Grundfosâ&#x20AC;&#x2122; growth, more so now than

We are continuing to invest in our

energy efficient office design, they

ever before. Significantly, up to 6% of

supply chain so we offer competitive

are about addressing sustainability in

our revenues are dedicated to research

lead times to our valuable customers

a more balanced and holistic manner,

and development. A key example is

in the region and we employ well over

looking further into structure to create

when we introduced iSOLUTIONS to

3,500 local employees.

greater efficiency in all aspects.

the market, which is a range of products

Partnership approach

business stakeholders to resolve issues

with a focus on connectivity, intelligent

As we enter the new decade and

Take, for example, the water and

monitoring and advanced features to

celebrate our 75th year, Grundfos

cooling systems of a building which

optimise water and energy efficiency

will reflect on our proud heritage but

are controlled by pumps. Paying more

across building systems.

also look forward to an even brighter

attention to the model and network of

future. We stand well-positioned to

pumps used in buildings goes a long

Now the company is looking at

pursue growth opportunities in this

way towards meeting sustainability

introducing a new era of intelligence

market and see the Asia-Pacific region

and energy efficiency standards.

for pump systems and water

as a place where we can be highly

technology which is designed to go

influential in the development of

A good example is the recent launch

beyond individual components and

pioneering solutions addressing water

of the Grundfos Distributed Pumping

optimise the entire system. Recently,

and climate challenges and improving

System which cuts pump energy

it introduced one of the worldâ&#x20AC;&#x2122;s most

peopleâ&#x20AC;&#x2122;s quality of life.

consumption in air conditioning

efficient motors, the MGE with IE5,

systems by at least 50% compared

which offers energy savings of 10%

with traditional designs. Conventional

along with a 25% reduction in payback

50 | POWER INSIDER VOLUME 11 ISSUE 5

Your partner for renewable and clean energy

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Water has always been a source of fascina-

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Boiler Water Wall Tube Inspection For thermal power plants, boilers have always been the heart. Breakdown or an unplanned shut down of a boiler leads to tremendous monetary loss to the asset owners. To be specific water wall tubes act as veins of boiler operation and thus remain the most critical segment as the operational temperature ranges between 500 to 550 degree Celsius which leads to following failures: •

Hydrogen damage

•

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•

Pitting

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Caustic gauging

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•

Mechanical and corrosion fatigue

•

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Thus a timely monitoring and inspection is always advisable to keep the boiler intact. We offer EMAT based inspection for determining the remaining thickness of boiler tubes. Data obtained by EMAT Inspection can be further used for Remaining Life Assessment (RLA) of Boiler.

52 | POWER INSIDER VOLUME 11 ISSUE 5

How EMAT Based Inspection Is Superior Than Other Methods:

Wall-loss can be measured even

generation. Using Lorentz forces &

with heavy ID and OD erosion,

magnetostriction, the EMAT & the

while cracks are easily identified

metal test surface interact & generate

Scanning speed : 500mtr –

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Rare Chances of missing defects

700mtr in 8 Hr. shift (depending

The material being inspected is its own

compared to conventional spot

on accessibility)

transducer, eliminating the need for

•

• •

ultrasonic thickness gauging •

Minimum surface preparation

liquid couplant.

EMAT Technology Associated Codes and Standards:

required as it’s a Couplant Free Inspection •

Gives thickness information with •

+/‐ 0.127mm accuracy which is

for Electromagnetic Acoustic

very sensitive in comparison with

Transducers (EMATs)

other electromagnetic techniques •

such as LFET & RFET. •

•

ASTM E1774-96 Standard Guide

ASTM E1816-96 Standard Practice for Ultrasonic Examinations

Asset Integrity Monitoring: Enables retracing of the same

EMAT Technology is an ultrasonic

spot with elevated information

testing method that differs from the

for the forthcoming shutdowns to

traditional piezoelectric transducers

measure degradation rates

in the way the sound is generated. An

Test Methods for Ultrasonic

Thickness measurement is possible

EMAT consists of a magnet and a coil

Surface Examinations Using

on tubes having heavily pitted non

of wire & relies on electromagnetic

Electromagnetic Acoustic

parallel walls

acoustic interaction for elastic wave

Transducer (EMAT) Technology

Using Electromagnetic Acoustic Transducer (EMAT) Technology •

ASTM E1962-98 Standard

we are an ISO 9001:2015 certified

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company offering24/7 on-site

We value and cherish their valuable

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Covid-19 Implications for Energy: Interview with uninterrupted supply of electricity to both

is changing its attitude towards ecology.

social facilities and ordinary residents.

The development and widespread use of technologies of treatment facilities in

We have also seen major changes to the

the energy sector and renewable energy

development of the digital economy

sources will be required. Nevertheless,

and the transition to a remote form

despite our commitment to green energy,

of work. The first months of strict

taking into account the geographical

quarantine showed that it is possible to

features of the region, as well as owing

work remotely. The online service has

to the sharply continental climate,

received a new impetus in development,

renewable energy sources will not be able

Mr. Bakitzhan Zhulamanov currently is

due to which many government services

to completely solve the issue of stable

the Chair of the Kazakhstan Member

have switched to electronic format,

heat and electricity household supply,

Committee of the World Energy Council

and this trend will only continue to gain

especially in winter time.

and holds the position of the Chairman

momentum.

of the Board of Samruk-Energy JSC.

Could Covid-19 be a pivot point for

He has held many governmental roles

Do you expect society, the economy and

accelerating energy transition?

in Republic of Kazakhstan, and his

energy systems to return to business-

Of course, the “energy transition” from

leadership roles included Chairman of the

as-usual quickly or will there be a ‘new

fossil fuels to clean sources cannot

Board of the Food Contract Corporation.

normal’ after the crisis is over? If the

happen per saltum or in several months.

latter, what will a ‘new normal’ look like?

The global infrastructure is tuned for

What will be the top long-term

The COVID-19 pandemic has not

the use of oil, with a global economy

implications (over 12 months) and

yet ended; the vaccine has not been

adjusted accordingly. However, this crisis

structural changes in the energy sector

invented. Therefore, in the current

showed that the existing system has

in your region/country as a result of the

environment, it is difficult to predict how

serious vulnerabilities, and diversification

Covid-19 pandemic?

society, the economy and the energy

of the energy economy will be in the

The Covid-19 pandemic has impacted the

system will look.

interests of everyone.

economies of many countries, as well as the energy sector. For the energy sector

As for the energy sector of Kazakhstan, it

of Kazakhstan, the main consequences

should be noted that the growth rate of

have included logistical difficulties that

consumption and electricity production

have arisen in terms of the equipment

in the country has been maintained.

supply, which leads to a delay in the

Electricity consumption for 4 months

implementation of many projects, due

of 2020 has increased by 2.7 percent

to the widespread closure of the borders

compared to the same period in 2019.

of many countries and limits on the movement of specialists.

Our energy structure is dependent on hydrocarbon resources, and coal power

Energy facilities have a strategic

plants account for the majority of our

importance to the country. In this regard,

electricity generation. Of course, climate

human vulnerability is of particular

change and the tendency towards

importance – especially the risk of

environmental protection dictate their

morbidity among the operational workers

own rules. We understand that the

of the plants, which could jeopardize the

world will not be the same. Humanity

54 | POWER INSIDER VOLUME 11 ISSUE 5

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Asia’s Nuclear Energy Growth World Nuclear Association • Asia is the main region in the world where electricity generating capacity and specifically nuclear power are growing significantly. • In Asia there are about 135 operable nuclear power reactors, about 35 under construction and firm plans to build an additional 60-70. Many more are proposed. • The greatest growth in nuclear generation is expected in China.

Japan

In contrast to North America and most

the ten-year period generation from

of Western Europe, where growth in

nuclear increased by about 400%. The

electricity generating capacity and

impetus for nuclear power in China

33 operable reactors (31.7 GWe) though

particularly nuclear power has been

is due to air pollution from coal-fired

many of these are temporarily shutdown,

limited for many years, a number of

plants as well as climate change.

2 under construction (2.8 GWe), 1 planned (1.4 GWe).

countries in Asia are planning and building new nuclear power reactors to

India

Japan was generating up to 30% of its electricity from nuclear power up

meet their increasing demand for clean electricity. Currently about two-thirds

22 operable reactors (6.3 GWe),

to 2011. Nuclear contribution had

of the reactors under construction

7 under construction (5.3 GWe),

been expected to increase to 41% by

worldwide are in Asia.

14 planned (10.5 GWe).

2017, and longer-term plans were

India has achieved independence

to double nuclear capacity (to 90

in its nuclear fuel cycle. The Indian

GWe) and nuclear share by 2050.

China

government is committed to

However, following the Fukushima

48 operable reactors (46.5 GWe),

growing its nuclear power capacity

accident in March 2011, these plans

12 under construction (10.0 GWe),

as part of its massive infrastructure

were dropped, with nuclear expected

44 planned (50.0 GWe).

development program. The

to provide about 20% of electricity

China is moving ahead rapidly in

government expects nuclear capacity

following the conclusion of the

building new nuclear power plants.

to reach about 22.5 GWe by the year

reactor restart process.

Units currently under construction

2031.

are a mix of indigenous and Western

India is a pioneer in developing the

Japan is committed to reprocessing its used

designs. Between December 2009 and

thorium fuel cycle, and has several

fuel to recover uranium and plutonium for

December 2019, most new units have

advanced facilities related to this.

re-use in electricity production.

been added in China (36), where over

56 | POWER INSIDER VOLUME 11 ISSUE 5

South Korea

nuclear reactors in the UAE, under a

Emerging countries

$20 billion contract. 24 operable reactors (23.2 GWe),

Multiple other countries in Asia are

Pakistan

4 under construction (5.6 GWe).

planning to introduce nuclear power

South Korea meets just under 25%

into their electricity mix. Full details

of its electricity needs from nuclear

5 operable reactors (1.3 GWe),

can be found in the World Nuclear

power. Nuclear energy has long been

2 under construction (2.2 GWe),

Association’s Emerging Nuclear

a strategic priority for South Korea, but

1 planned (1.2 GWe).

Countries information paper.

the president elected in 2017 is aiming

Pakistan generates about 7% of its

to phase it out over some 45 years.

electricity from nuclear. An expansion

Nuclear Power in Asia, and Involvement

of nuclear capacity has long been a

with the Nuclear Fuel Cycle

South Korea is among the world’s most

central element of Pakistan’s energy

prominent nuclear energy countries,

policy. The government’s 2014 plans

and exports its technology widely. It is

outlined an aim for 8.9 GWe of nuclear

currently involved in the building of four

capacity at ten sites by 2030.

Power Reactors Operable

Power Reactors Under Construction

Power Reactors Planned

Australia 2

Bangladesh

Research Reactors Operable

Other Stages of the Fuel Cycle

China

UM, C, E, FF

India

UM, FF, R, WM

C, E, FF, R, WM

C, FF

N. Korea

C?,FF?,R

Malaysia

Indonesia Japan

Kazakhstan S. Korea

Pakistan

UM, E, FF

Vietnam Total

132

Key: UM Uranium mining, C Conversion, E Enrichment, FF Fuel fabrication, R Reprocessing, WM Waste management facilities for used fuel away from reactors.

NUSCALE POWER • NuScale’s tiny modular reactor design has received a final safety evaluation report on its way to certification. • The reactor isn’t technologically new, but has a much smaller form factor and new safety system. • There are several more steps, including public feedback and the final road to building NuScale reactors.

Nuclear startup NuScale has received

Most of the planned “advanced

“The reactor vessel containment

a landmark final safety evaluation

reactor” technology close to reality

module is submerged in water in the

report (FSER) for its modular reactor

is like NuScale, in that it’s a new

reactor building safety related pool,

design, making it the first American

shape or application of an existing

which is also the ultimate heat sink

modular design to reach this point.

technology. There’s an intermediate

for the reactor. The pool portion of

NuScale’s design uses classic nuclear

phase of new technology like molten

the reactor building is located

fission water reactor technology

salt. And finally, the next wave of

below grade.”

in a much smaller form factor,

advanced reactors may involve

which contrasts with the escalating

fusion, embodied by ITER as well as

In the event of any runaway reactor

sizes of most current nuclear plant

much smaller tokamak and stellarator

event, NuScale says, the reactor

construction around the world.

projects around the world.

quenches itself in its pool, making it “passively safe.”

“As the first U.S. small modular

NuScale’s design is simple ... kind of.

reactor design to be issued a FSER,

“NuScale is a natural circulation light

NuScale submitted its reactor design

NuScale is pioneering the way for

water reactor with the reactor core

for this approval in late 2016, and the

additional innovative advanced

and helical coil steam generators

NRC accepted it for review in 2017.

nuclear technologies under

located in a common reactor vessel in

It’s normal for nuclear technology

development,” Nuclear Energy

a cylindrical steel containment,” the

to take a long time to be studied

Institute (NEI) new reactor director

U.S. Nuclear Regulatory Commission

and certified step by step. One way

Marc Nichol said in a statement.

(NRC) explains online:

NuScale streamlined the process is

58 | POWER INSIDER VOLUME 11 ISSUE 5

by designing a small reactor it says is

together in an innovative way. Think

that power small towns or facilities

more self-contained and inherently

of this like the difference between a

up to bundles that will work like

safe than larger, bespoke-to-site

home library with shelves built into

“traditional” large-scale nuclear

nuclear fission reactor plants.

the walls, versus being able to buy

plants. And these designs harken

modular bookshelves at a furniture

back, if indirectly, to the origins of

The startup has tried to head off some

store: there are reasons to do one

nuclear as a “portable” way to power

of the containment and emergency

or the other, and both will hold your

submarines—and potentially carry

cooling issues for which larger

books. But the furniture store sends

humans further into space.

plants must plan, resulting in a more

along a user manual, continues to

streamlined certification process.

make replacement pieces, and so on.

The current design, which still has several steps until it can be

Nuscale Power

Modularity and smallness are key

constructed in the wild, is for 50

In a way, NuScale is emblematic of

aspects of NuScale and its peers,

megawatts per module. NuScale

next-generation nuclear thinking. The

but these aren’t new ideas, either.

seeks to apply for a 60-megawatt

technology inside is mostly made

NuScale wants to put its small

version next.

of established parts that are put

reactor in applications from singles

Ensuring Continuity of Utility Operations: Recommendations for Mitigating the Effects of COVID-19 A stable and reliable supply of energy is essential to maintaining critical infrastructure needed for national

• Supply chain strength and employee protective devices • Access to controlled or

defence, sanitation and water supply,

contaminated environments

communication, health care, banking

and application of government

and credit, and the management of

guidelines and regulations

supply chains.

• Mutual assistance and onboarding of volunteers and peer support

Energy utilities in the United States, Eastern Europe & Asia have long had

• Preparing for the eventual return to work

disaster response plans in place to ensure business continuity in a crisis. These plans

• Equip personnel and vehicles with proper identification and logos when entering areas where access has been restricted by government authorities • Prepare for an increase in cyber threats, ransomware attacks, and scams, which typically increase during a critical incident. “Cyber hygiene matters.” Be aware, be prepared. • Use secure VPN technology to

• Ensure the safety of staff (provide

allow staff to work remotely.

outline responses to commonly occurring

personal protective equipment), and

weather related impacts as well as rare

the cleanliness of common areas of

to installing software platform

pandemic threats that—until now—had not

essential operation (including coffee

patching.

yet materialised in a significant way. Now,

machines, vehicle fleets, etc).

from the unique challenges of COVID-19,

• Decentralise operations by developing

• Maintain good practices related

• With careful consideration of

energy utilities are developing and sharing

separate teams to cover different

employee safety, continue essential

best practices for ensuring both the safety

areas of operation.

preventative maintenance (protecting

of staff, and the security and reliability of energy supply. In a recent webinar sponsored by the Energy Technology and Governance

• Identify and divide critical

supply lines, securing IT systems)

employees into teams that will

to protect against other threats and

not interact with (or infect) each

outages and to ensure transmission

other.

security and reliability.

• Consider new shifts and rotations

Program of the United States Agency for

of work hours to protect the

International Development (USAID) and

health of staff and continue 24-

risks with customer need for critical

the United States Energy Association

hour operation.

power supply for homes, hospitals,

(USEA) in cooperation with the Edison Electric Institute, American and Eastern

• Manage organisational financial

businesses. • Consider sequestering control center

• Frequently assess financial

European Energy leaders offered the

staff on a 7- or 14-day schedule and

following recommendations for utilities

recognize that sequestration requires a

around the world to consider:

degree of certainty that the employees

investments and non-essential

are deemed to be healthy as a result

activities

• Ensure that your crisis response/

of testing

operation plan considers how your utility will manage the following key functions:

• Decrease or postpone new

• Consider alternatives for customers who cannot pay or

• Develop a workflow process to assess potential COVID-19 concerns

• Control center continuity

when visiting customer premises for

• Generation facility continuity

service calls

60 | POWER INSIDER VOLUME 11 ISSUE 5

stability and liquidity

cannot access payment centres

New, Downloadable Thought Leadership Paper: Toward a Zero Carbon Future

Jacobs and Yarra Valley Water have partnered to deliver a thought leadership paper which asks ‘what if’ the growth of Australia’s hydrogen industry could be supported by co-located hydrogen production at wastewater treatment plants? Find out in our latest insights. Read the full paper at: bit.ly/37UClvl The broad utilization of hydrogen has

savings for the wastewater treatment

for the efficient use of pure oxygen

potential to play an important role

plant to effectively subsidize the

at the Aurora wastewater treatment

in our drive toward a decarbonized,

cost of hydrogen and increase its

plant could deliver net capital and

sustainable future. But in Australia, cost

commercial viability.

operating cost savings to Yarra

remains a major barrier to adoption.

Valley Water compared to other “Together with Yarra Valley Water,

types of treatment options tested.

Building on the suggestions made

our paper starts a conversation

At the same time, the guaranteed

in our original thought leadership

about a possible future role for

demand for oxygen at Aurora was

paper in 2019, our latest release

water utilities in Australia’s hydrogen

instrumental in enabling the co-

uses Yarra Valley Water’s Aurora

industry that supports both

located hydrogen facility to be

wastewater treatment plant as a case

decarbonization and the commercial

commercially viable while selling

study to explore the relationship

readiness of this emerging industry,”

hydrogen within a competitive price

between both outputs from

says Jacobs’ Senior Vice President,

range of AUD$2-6/kg.

electrolysis - hydrogen and pure

Global Operations Patrick Hill.

oxygen. Specifically, the high-level

Importantly, this result was achieved

analysis explores whether using

The findings from the case study

for ‘sustainable hydrogen’ — produced

oxygen in wastewater treatment

indicated that implementing a type

using recycled water and renewable

processes could create enough

of treatment technology that allows

energy — highlighting the opportunity

FEATURE: TOWARD A ZERO CARBON FUTURE

for decarbonization without

development of Australia’s hydrogen

including consulting, technical, scientific

compromising the nation’s drinking

industry. The implications for the

and project delivery for the government

water resources.

water industry and the Australian

and private sector. Visit jacobs.com

Government’s hydrogen strategy present

and connect with Jacobs on Facebook,

“Embracing renewable energy is a

an exciting opportunity to enable more

Instagram, LinkedIn and Twitter.

significant focus for our business. It’s

rapid decarbonization of the world’s

been fantastic to partner with Jacobs

most emissions-intensive industries.

About Yarra Valley Water:

About Jacobs:

Yarra Valley Water is the largest of

to explore how the water sector could play a bigger role in developing an

Melbourne’s three water corporations,

effective and commercially viable hydrogen industry in Australia,” shares

At Jacobs, we’re challenging today

servicing the north and east of

Yarra Valley Water Managing Director

to reinvent tomorrow by solving the

Melbourne. Their service area covers

Pat McCafferty.

world’s most critical problems for

4,000 square kilometres and its

thriving cities, resilient environments,

network consists of around 20,000

While the results are specific to the

mission-critical outcomes, operational

kilometres of water and sewer mains.

unique circumstances of the Aurora

advancement, scientific discovery

It manages nearly $6 billion worth of

wastewater treatment plant and

and cutting-edge manufacturing,

infrastructure and assets and employs

possible caveats are highlighted, the

turning abstract ideas into realities that

around 700 people. For more

conservative nature of the analysis

transform the world for good. With $13

information, visit www.yvw.com.au,

suggests the findings are promising

billion in revenue and a talent force of

and connect with Yarra Valley Water

and point towards a pivotal role for

more than 55,000, Jacobs provides a

on facebook.com/YVWater and

water utilities in accelerating the

full spectrum of professional services

twitter.com/yvwater

62 | POWER INSIDER VOLUME 11 ISSUE 5

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Knowledge in Power Whether global or local, events that change the way we live and work only intensify the demand for reliable electricity. And they amplify issues like financing and regulation that make the path toward sustainable, resilient grids challenging.

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