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ASEAN TOWARDS CLEAN AND SUSTAINABLE ENERGY:

WHAT ARE THE POTENTIALS, UTILIZATION AND BARRIERS?

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What are the Floating Solar PV Technology updates in ASEAN?

Insights Thailand Seeks Rooftop Solar Policy Revision: How the New Version will Interest Roof owners?

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CONTENT NEWS

INSIGHTS

10 Thailand Seeks Rooftop Solar Policy Revision: How the New Version will Interest Roof owners?

IN CONVERSATION

06 ANDREW HINES Co-founder and Chief Commercial Officer, CleanMax

What are the Floating Solar PV Technology updates in ASEAN?

08 JEN TAN

MONALISA C. DIMALANTA

Head of Solar Singapore & Sea Sembcorp Industries

Chair, National Renewable Energy Board (Philippines)

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13 ASEAN Towards Clean And Sustainable Energy: What are the Potentials, Utilization And Barriers?

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INCONVERSATION

ANDREW HINES Co-founder and Chief Commercial Officer, CleanMax

From a global perspective, how has the Renewable Energy sector progressed over the last decade? Over the last five to ten years, renewable energy has moved from the margins of global power generation to the forefront of the industry, with ever-larger scale, and increasingly competitive economics. Both solar and wind power now provide some of the cheapest power in the world, and out-compete coal and gas generation in most parts of the world, including in Southeast Asia.

What is the role played by the global corporate leadership initiative RE100, which brings together influential businesses committed to 100% renewable electricity? Corporate consumers of electricity have planted a significant role in the growth of the Renewable Energy sector. More and more of the world’s largest companies are signing on to RE100, pledging to source 100% of their power from renewables. As companies begin taking concrete steps towards these targets, they are understandably targeting the geographies where they can do this economically, and even save money in the process.

Southeast Asia is seeing tremendous growth in the RE space. Which country is your pick among this region?

"CleanMax has built a capacity of 600MW of renewable energy projects in Asia, across hundreds of project sites" Within Southeast Asia, Thailand is a very attractive market for the private sourcing of solar power. The combination of high grid electricity tariffs and good solar irradiation leads to a significant savings potential for large industrial rooftop clients, which is greater than in any other southeast Asian market. The large manufacturing base in Thailand provides a good market potential for this offering.

Tell us about your experience with development and financing of renewable energy projects in Thailand? CleanMax, which is Asia’s largest B2B renewable energy developer, entered the Thailand market in 2018, with a view to tap this market potential and also cater to the needs of its existing portfolio of large corporate clients. CleanMax has built a capacity of 600 MW of renewable energy projects in Asia, across hundreds of project sites,

| ASEAN | AUG SEPT ISSUE 2020

exclusively for the supply of energy to premium corporate clients. These clients span all large industrial and commercial segments, including automotive, heavy industry, pharma, technology, textile, and others, in all types of industrial and commercial facilities. In Thailand, CleanMax secured a USD 10 million financing line from Swiss asset manager responsAbility, to enable its first 20 MWp portfolio of industrial and commercial rooftop solar projects in Thailand.

What do corporate power consumers look for in a developer when they decide to go for solar power? In general, corporate power consumers in Thailand – and globally – have two overriding priorities when it comes to sourcing rooftop solar power under a private PPA. The first, of course, will be the cost of energy. The second, which is often overlooked by developers,

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is the overall reliability of the developer. Global corporates in particular, want to ensure that a long-term partner is aligned to its values and practices when it comes to safety and legal compliance, and is in the business for the long term. This can be a particularly important concern in a market like Thailand, where the rooftop solar industry is nascent and includes only a few developers with extensive experience on industrial rooftops. CleanMax leverages its 10-year experience across several hundred rooftop sites to bring engineering expertise to qualityconscious consumers in Thailand. It is also deploying the latest technologies, including 500 Wp and higher module capacities, to help industrial clients make the most of their roof space to generate low-cost and sustainable power. As the Thailand market matures, consumers are becoming more demanding, in terms of both quality and the price of power, as well as contractual flexibility. A developer like CleanMax can also use its scale to achieve superior commercial offering, as well as greater contractual flexibility to its clients.

Could you please tell us something about the rooftop solar project work currently taking place in the country?

Lastly, how is the growth projection of the Thailand market seen in the near future? As the private PPA market for rooftop solar continues to grow in Thailand, the industry can be expected to mature and consolidate, as we have seen elsewhere in the world. As corporate buyers become more sophisticated, they will only entertain proposals from the developers with the best economics and contracts, and the highest regard for safety and quality. For developers able to meet these exacting standards, they are likely to see years of continued growth, as they work alongside corporates in Thailand towards a greener and more cost-effective power grid.

CleanMax, which is Asiaâ&#x20AC;&#x2122;s largest B2B renewable energy developer, entered the Thailand market in 2018, with a view to tap this market potential and also cater to the needs of its existing portfolio of large corporate clients."

3.5 MWp plant recently commissioned by CleanMax in Thailand

This year, CleanMax commissioned a 3.5 MWp rooftop solar project, which represents the largest rooftop solar project in Thailand under the private Power Purchase Agreement (PPA). This project has deployed the latest module technology, to maximise the energy output from available rooftops, and to deliver the lowest possible energy cost to the industrial client, in addition to reducing its carbon footprint. Expanding on this scale, CleanMax has recently signed another PPA for a 4 MWp rooftop project with another large manufacturer, and is planning several more such projects in the coming year and beyond. | ASEAN | AUG SEPT ISSUE 2020

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INCONVERSATION

JEN TAN Head of Solar Singapore & Sea Sembcorp Industries

Sembcorp has numerous renewable energy businesses. Tell us about them. Sembcorp has a portfolio of 12,600MW of power capacity with over 2,800MW from renewables, battery storage and energy-fromwaste capacity. Currently we have wind power assets in China and India, and solar power assets across India, Singapore and Vietnam.

What do customers look for when they approach Sembcorp to help them address their sustainability ambition? As climate action and sustainability issues are fast rising on the agenda of governments and corporations, we see the demand for clean energy picking up momentum. Solarisation tends to be the go-to solution in the energy transition since the sun as the fuel source is unlikely to run out anytime soon! Solar power is also the most reliable option among renewable energy sources as we are able to turn it into electricity in an efficient and costeffective manner. We have two categories of customers. The first group is the institutional customers, usually government agencies such as municipal authorities looking for large-scale solar solutions.

"Sembcorp drives the energy transition with solar power" The second group comprises commercial and industrial customers looking for customised solar solutions that are scaled to meet their clean energy needs. As a one-stop provider of sustainable solutions, Sembcorp customers come to us for our trusted and proven solar capabilities as well as our ability to customise and scale other environmental solutions that can help them meet their green targets. Customers want a partnership that can endure the test of time, hence they choose Sembcorp as we are able to deliver on time and on target every time.

A significant milestone was achieved by Sembcorp by undertaking one of the world’s largest inland floating solar PV systems projects. Tell us more about it.

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Earlier this year, Sembcorp was appointed by PUB, Singapore’s national water agency, to design, build, own and operate a 60MWp floating solar photovoltaic (PV) system on Tengeh Reservoir. This is a milestone not just for Sembcorp but also for Singapore in building one of the world’s largest inland floating solar PV systems. This project will not only help to reduce dependency on fossil fuels and thus carbon emissions, but also builds national climate resilience for a more sustainable future. Set for completion in 2021, this project will deploy over 146,000 solar panels covering an area of around 45 football fields. The solar PV system will generate enough energy to meet the dayto-day energy needs of PUB’s five local water treatment plants, making Singapore one of the few countries in the world to go green for water treatment.

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The project will also incorporate new innovations in floating solar PV design and construction. Every component of the system was carefully designed and selected based on Singaporeâ&#x20AC;&#x2122;s climate conditions in order to maximise energy generation and minimise environmental and water quality impact. These include doubleglass PV modules instead of the single-glass variant commonly used for rooftops installations, to enhance durability in a wet and humid environment. The PV modules are supported by certified food-grade quality high density polyethylene (HDPE) floats which are UV-resistant to prevent degradation from the intense sunlight exposure.

Technological innovations are playing a remarkable role in solar. Tell us about one key milestone achieved by your esteemed company with respect to technological advancements? Technological advancements have strengthened the operations and maintenance of our solar assets, enabling us to bring more value to our customers. Our real-time Sembcorp Solar Performance Management System makes it possible for us to offer quality surveillance and remote monitoring of all our solar assets in the region. Our team is able to act on alerts quickly to ensure our assets are always performing at optimal levels.

Besides solar solutions, Sembcorp offers wastewater treatment, recycling and alternative water solutions; smart waste and recycling management; retail electricity and energy management services; as well as digital solutions such as renewable energy certificates (REC) platform.

Tell us more about the Sembcorp renewable energy certificate (REC) platform which we heard is the first aggregator platform in Singapore. The Sembcorp REC aggregator platform is a core technology offering within Sembcorpâ&#x20AC;&#x2122;s suite of urban sustainability solutions. This digital platform is part of the sustainability solutions that Sembcorp offers to help customers meet their sustainability needs. Through our Sembcorp REC platform, businesses and individuals can buy, sell or retire RECs online. A renewable energy certificate is a tradable proof that indicates the generation of one megawatt hour (MWh) of electricity from a qualified source of renewable energy. Businesses with clean energy targets can choose to buy RECs to meet their sustainability goals. The platform aggregates RECs for sale in bulk by combining RECs from different sources, including those generated from Sembcorp renewable assets. As we are able to offer a stable supply of authentic RECs, RE100 companies and other sustainability-conscious customers looking to purchase large volumes of RECs will find our platform particularly useful. Our Sembcorp REC platform is powered by blockchain technology, so customers can be assured of transparency, integrity and security of every transaction. The REC dashboard provides real-time tracking and management of every transaction covering a RECâ&#x20AC;&#x2122;s life cycle, so this makes it a convenient portfolio management tool.

What other sustainability solutions do you offer? What is the key challenge that you help your customers deal with? We help our customers meet their environmental sustainability targets across energy, water and waste. At Sembcorp, we offer one-stop urban sustainability solutions that can be integrated, customised and scaled to help customers achieve their sustainability targets in a holistic way.

| ASEAN | AUG SEPT ISSUE 2020

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INCONVERSATION

MONALISA DIMALANTA Chair, National Renewable Energy Board (Philippines)

How has the Renewable Energy sector dynamics changed over the last 5 years in the Philippines? There has been a gradual shift in the Philippine renewable energy landscape over the last five years: with the full subscription of the capacity made available by the Government for the feed-in-tariff (FIT) system for solar and wind, there was undeniably a slowdown in investments in these technologies for utility-scale projects. But this has moved attention to the consumer/C&I space where we see the growing trend in the prosumer sector. This is also Year 1 for compliance of the Renewable Portfolio Standard (RPS) where at least 1% of the gross sales of certain buyers (utilities, retail providers) are required to be sourced from renewables. We also implemented this year the voluntary RE market (Green Energy Option Program) where customers with an average demand of 100kW can source RE supply directly from their chosen suppliers. Apart from these programs that were set under the Philippinesâ&#x20AC;&#x2122; Renewable Energy Act (RE Act), there is also that momentum growing among consumers to procure RE. All these make me believe that the Philippine RE sector is poised for a resurgence in the near term.

"For the revised NREP, we are setting such targets against the projected growth in demand as well as possible substitution of non-RE capacity (from retiring plants)."

The share of Renewable Energy in the Philippine power generation mix hit a new low of 21% in 2019, hence, what revisions to the NREP (National Renewable Energy Program) are being planned by NREB? We are very much mindful of this in the NREB as we realize that it is no longer enough to simply focus on promoting RE without a clear and integrated view of the entire power sector. Among the new approaches we are adopting with the revised NREP is embedding RE within the system of energy and power development planning in the Philippines. The existing or old NREP provided only for a listing of RE projects (proposed and approved) as well as the implementation plans for the programs mandated under the RE Act. For this new NREP, we start from the perspective of demand

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over the next 20 year period and then identify RE capacities that can meet that demand for 2020-2040. This approach necessitated access to data from bureaus at the Department of Energy (DOE) other than the bureaus directly working with NREB. We are very grateful for the openness of the DOE to this approach, which has allowed us to work hand-in-hand in coming up with a common set of cost assumptions for all technologies for the base case for energy planning. From that base case, we then create the high-RE scenarios with our recommendations from NREB to the DOE.

We have heard that the Philippines will open Renewable Energy Space for 100% foreign ownership. Could you please throw some light on this? There are already RE technologies that permit foreign participation PG 8

greater than the 40% limit. The Philippine Constitution, for instance, allows for up to 100% foreign participation in large-scale exploration of minerals, among others, under a financial, technical assistance agreements or FTAAs which may be awarded and signed by the President. Geothermal resources are classified as mineral resources under the RE Act which then lends the exploration, development and utilization of the resource, in large scale, as permissible under an FTAA process. For large, impoundment hydropower projects, the Supreme Court previously issued pronouncements that the nationality restrictions limiting foreign participation to 40% does not apply to the power generation component of such projects. Along the same lines of analysis, the DOE issued last year its own guidelines for the awarding of biomass operating contracts to up to 100% foreign participation. What remains under review then is whether or not foreign participation greater than the 40% limit can be permissible for solar, wind and small or run-of-river hydro projects. Take note that when we speak of these RE resources, there is really no private ownership of the resource that is possible since under the Philippine Constitution, all natural resources are owned by the State. Thus, when we talk about these foreign ownership limits, we are really talking about the extent of participation allowed in the corporate entities that undertake the exploration and development of the resource.

How can advanced data analytics aid in cost reduction and improvement of operations and maintenance of the solar projects? There are already RE technologies that permit foreign participation greater than the 40% limit. The Philippine Constitution, for instance, allows for up to 100% foreign participation in large-scale exploration of minerals, among others, under a financial, technical assistance agreements or FTAAs which may be | ASEAN | AUG SEPT ISSUE 2020

awarded and signed by the President. Geothermal resources are classified as mineral resources under the RE Act which then lends the exploration, development and utilization of the resource, in large scale, as permissible under an FTAA process. For large, impoundment hydropower projects, the Supreme Court previously issued pronouncements that the nationality restrictions limiting foreign participation to 40% does not apply to the power generation component of such projects. Along the same lines of analysis, the DOE issued last year its own guidelines for the awarding of biomass operating contracts to up to 100% foreign participation. What remains under review then is whether or not foreign participation greater than the 40% limit can be permissible for solar, wind and small or run-of-river hydro projects. Take note that when we speak of these RE resources, there is really no private ownership of the resource that is possible since under the Philippine Constitution, all natural resources are owned by the State. Thus, when we talk about these foreign ownership limits, we are really talking about the extent of participation allowed in the corporate entities that undertake the exploration and development of the resource.

With the present Covid situation, how are you targeting to achieve the ambitious capacity of 15GW of RE by 2030? Realistically, even without the pandemic, we have already recalibrated this target. When we reviewed the targets under the old/existing NREP vis-a-vis the actual capacities built and projected to be commissioned by 2030, the gap is clear and it is no longer feasible for the target to be met. As also mentioned earlier, for the revised NREP, we are setting such targets against the projected growth in demand as well as possible substitution of non-RE capacity (from retiring plants). This matching with demand was a missing factor when the 15GW target was set in the old NREP.

Since the Philippines is an archipelago, transmission of power is a challenge, what kind of technological advancements will be required in the coming future? I think technological advancements in decentralized power systems would be optimal for the Philippines. That said, what we need is to prepare our regulatory environment for these systems. There is a lot of work that we need to do in this regard, and we are working closely with the Energy Regulatory Commission to design and enable a regulatory environment.

A country like the Philippines can have huge support from large-scale installations of floating solar PV. Are there any plans currently in process for the same? There are already demo and pilot projects for floating solar in the Philippines. You are correct - this is one of those low-hanging fruits for us. Floating solar PV installations can expand the capacities of several hydropower projects currently operating in the system. There are also several demo projects along the Laguna Lake area which can have potential for new capacities. PG 9

INSIGHTS

WHAT ARE THE FLOATING SOLAR PV TECHNOLOGY UPDATES IN ASEAN? FLOATING-PV ASEAN UPDATE

The potential for renewable energy in the Asia Pacific region is huge. Home to 60% of the world’s population, and with its economy forecast to triple by 2040, its energy needs are also set to grow by more than 400GW over the same timescale. In this article Daniel Gaefke, Director of Projects APAC for global renewable energy developer BayWa r.e. discusses the role of Floating-PV in the region. With high levels of sunshine, countries like China, Thailand, Vietnam, Malaysia and Korea already have many land-based solar developments. But while solar represents an obvious target for development, large land-based projects can be problematic. Ideal sites for commercial scale groundmounted solar are generally located near to centres of demand – and these are usually in places where land is already at a premium.

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investment and cost of capital are important considerations when applying any technologies, especially relatively new ones.

"We believe the countries most suited to FloatingPV development are Korea, Japan and Vietnam…."

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"Operation and maintenance of FloatingPV installations is also straightforward and low-cost if the design and build is carried out diligently." In such cases, Floating -PV may offer the perfect solution. One of its biggest benefits is that it avoids classical land use conflicts, instead making use of existing bodies of water. For densely populated countries like South Korea, Vietnam, and Japan, this has obvious benefits. A great source of space As many expanses of water provide significant surface areas but are used for few or no other purposes, they present a huge untapped potential. While this is still a relatively new technology, it’s already clear that Floating-PV can also offer potentially higher yields than its groundmounted equivalent, thanks to its water-cooling effect. And as FloatingPV technology advances, system costs will reduce, improving the LCOE and making it increasingly economically feasible. It’s an approach that BayWa r.e. is certainly embracing and together with our partner GroenLeven, we have already built more than 50MWp of Floating-PV in Europe, with a further 100MWp planned in the next year alone.

TARGETING APAC

We believe the countries most suited to Floating-PV development are Korea, Japan and Vietnam, followed by Malaysia, Thailand and Singapore. But that doesn’t mean they’re straightforward markets – there are hurdles that are holding back roll-out of Floating-PV in the region. For example, Korea is a key market for Floating-PV because of its land scarcity, land costs and incentives. Floating-PV projects also don't require any additional major permits, so it is relatively uncomplicated to develop in Korea, however, the same cannot be said for Vietnam or Singapore. In the former, there is huge potential but a lack of policy and regulatory frameworks plus grid connection issues means realising this is problematic. In Singapore, development potential is hampered by the government’s tender process, fewer possible sites and unique country requirements. Some APAC countries have supportive policies in place, such as FITs that are higher for water-based solar - as is the case in Taiwan and China. In Japan, where 73 of the world’s largest floating projects in the world are located, the government has introduced high FITs for all sources of solar generation. While in Thailand, the Electricity Generation Authority favours Floating-PV and aims to build 16 systems on its dams, with a combined 2.7GW capacity, by 2037. These supportive policies provide a good base framework designed to attract investment and stimulate growth. A WIN WIN

With clear benefits and speed of delivery, Floating-PV offers significant benefits in terms of contributing to carbon reduction targets, while also avoiding land use conflict. It can also help address issues of evaporation from reservoirs, contributing to reducing issues relating to water shortages. Higher CAPEX costs associated with the technology are anticipated to continue to fall. Through lower operating costs and increased efficiency, Floating-PV can be competitive with ground mounted installations. It’s also perfect for use on large surface areas and offers ease of installation. So while there are some challenges that need to be overcome, we believe Floating-PV is set to accelerate in the near future across South East Asia.

Clearly, investment and cost of capital are important considerations when applying any technologies, especially relatively new ones. But while installation costs are currently slightly higher than those for groundmounted solar, it is anticipated that these will fall quickly as the technology matures and production rates increase. Operation and maintenance of Floating-PV installations is also straightforward and low-cost if the design and build is carried out diligently. | ASEAN | AUG SEPT ISSUE 2020

Author : Daniel Gaefke, Director of Projects, APAC BayWa r.e. Thailand Co., Ltd.

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INSIGHTS

THAILAND SEEKS ROOFTOP SOLAR POLICY REVISION: How the New Version will Interest Roof owners?

It is a bit presumptuous to present and evaluate Thailand's new regulatory framework at this time. Past announcements and draft versions for the future are only a shaky foundation for investments. The following statements should therefore be taken with great caution as a guide for economic decisions. In Thailand, unexpected changes should never come as a surprise.

BRIGHT RAYS OF LIGHT ON THAILAND'S SOLAR ENERGY: Thailand' s solar energy is of great importance for the sun-kissed country in the center of Southeast Asia. This is valid for the traditional ground-based solar farms, for the solar plants on Thailand' s large dams, as well as for solar rooftop facilities. Despite excellent conditions, Thailand lags behind its neighboring countries in the solar rooftop segment. This is based on a zigzag policy of decision-makers and officials. In the context of a recent cabinet reshuffle, no longer the hesitators but the movers and shakers have decision-making power. A new optimism is advocated that the prospective innovations will finally be put into force. This is of cardinal importance at a time when important economic sectors are still paralyzed by the pandemic. The headlines in the local newspapers as of September 2017 promised that the "sales of rooftop solar power would begin". This statement has been repeated during the three years until now and the Thai government will end â&#x20AC;&#x153;soonâ&#x20AC;? the decades-long restrictions on electricity sales of households and commercial buildings.

NET-METERING AS THE STRONGEST TOOL TO PROMOTE SOLAR ROOFTOP INSTALLMENTS Net-metering as we would like to understand it means that the sales from the electricity production on the rooftop and the own consumption are offset and only the net amount is included in the monthly electricity bill. In case of a positive electricity bill, the prosumer consequently does not need an electricity production license. This will not be possible in Thailand in the foreseeable future. Instead, import and export will be assessed separately and subj ected to a dual-pricing system. The sales price that the rooftop owner receives is considerably lower than the price at which electricity must be purchased from the grid. Licensing by government agencies is also required if only a fraction of the electrical energy obtained from the grid is fed back into the grid. | ASEAN | AUG SEPT ISSUE 2020

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The feed-in price of Baht 1. 68 (US cent 5. 4) and the limited total volume of 100 MW or even only 30 MW will make it hardly feasible for private developers to make investments in a business model that depends on longterm scaling effects.

UNFULFILLED DESIRES FOR A MORE ROBUST NEW REGULATORY FRAMEWORK Thailand' s solar rooftop legislation has a restricted definition of the term rooftop. It does not include all non-ground-based solar panel installations. The liberalization of the rooftop concept would be helpful but is currently not on the agenda. The same applies to "grid-connected offsite solar facilities". This is a solar rooftop installation located away from the organization' s physical premises. Under this desirable structure, the electricity would not be cheaply sold to the grid but channeled through it for later self-consumption. In a presently unclarified overall environment, expanded structures adapted to specific circumstances lead to increased implementation risks. The sale of solar power to the rooftop owner cannot be equated with a private

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offtake agreement with tenants of the landlord resident in the same building. A more generous regulatory regime would reduce investment uncertainty. The possibility of feeding surplus electricity into the grid, particularly on weekends and public holidays, but also in the event of short business interruptions, and thus stabilizing the overall profitability of the investment, presupposes that the power purchase agreements allow such flexibility. Another consideration is the possibility to use the solar rooftop under an insolvency scenario by passing solar energy as plan B on to the public utilities. For the financing decision of a solar rooftop developer, the grid-option is a part of his business modeling of the investment. If the financing is not sound, the entire solar rooftop model collapses into itself.

AUTHOR:

DR. ULRICH EDER MANAGING DIRECTOR, PUGNATORIUS LTD

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PERSPECTIVE

ASEAN TOWARDS CLEAN AND SUSTAINABLE ENERGY: What are the Potentials, Utilization And Barriers?

The nations of Southeast Asia stand at a crossroads in terms of their collective energy future. Amid rapid economic growth, they face a 50% rise in regional energy demand within a decade. This brings challenges in supplying energy affordably, sustainably and securely. With the growing concerns about greenhouse gas (GHG) emission and consequent climate change, renewable energy sources have become more attractive option for electricity generation around the world. The Association of Southeast Asian Nations (ASEAN) has not utilized its renewable energy resources anywhere near to the potential. Studies have been made to find ways to accelerate renewable energy deployment in line with the region’s goal. Efforts are being made to overcome major barriers in promoting renewable energy in ASEAN countries. With Government initiatives, attractive policies, and emerging technologies Asean aims to rely more on renewables to support a sustainable, secure and prosperous future. Let's find out more from our experts

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LUIS XU Regional Director, Sungrow APAC

Southeast Asia is becoming one of the fastest-growing solar markets given rising demand for electricity and ample solar resources. The region, where overall energy demand is set to grow by 60% from 2019 to 2040 forecasted by IEA, also features favorable renewable related policies which are attracting both domestic and global investors. Sungrow devotes much effort in the region and takes the first place in market share in Vietnam, accounting for 30% of market share in countries like Thailand, Malaysia, Philippines. Vietnam found itself with 5 GW of PV projects by the end of 2019, far exceeding the 1 GW by 2025 target. The feed-in tariff, government support and investment across the value chain are set to shape the country’s solar energy market. The country’s energy consumption will continue to grow as the economy recovers from the pandemicinduced downturn. Notably, as an early entrant to the market, Sungrow has over 2.5 GW of the PV inverter solutions installed in Vietnam yet. Not only tops the position in utility-scale installations, Sungrow also leads the rooftop segment with a market share of 50%.

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Thailand plans to achieve a target of 15.4 GW of solar energy by 2037. The country has focused on supporting residential and C&amp;I rooftop plants. It has great solar potential, especially the northeastern region of Udon Thani Province and certain areas in the central region. The regional industrial and trading leader, Singapore set a goal of installing at least 2 GW of peak solar power capacity by 2030 - more than 10% of current peak electricity. While natural-gas power generation supplies 95% of Singapore’s national generation capacity at present. In countries like Indonesia and Malaysia, the solar energy market is growing slowly and steadily.

The respective governments are continuously encouraging the development of renewable energy through various policies. Micro-grids have taken the lead in countries, such as Indonesia and Myanmar. Sungrow supplied the PV and energy storage system solutions to the Maldives islands which can utilize the abundant solar resources and be fully integrated into the existing diesel network, significantly alleviating the power shortage and decarbonizing the economy. When seeing a massive wave of solar power projects across these ASEAN countries, we see some challenges as well. The low electricity prices from fossil-based fuel, uncertainty over future investment policies and increasing competition from other alternative fuel sources are some of the challenges. Other challenges regarding infrastructure and administrative processes which need to be addressed to fully take advantage of regional solar energy potential.

LAKMAL FERNANDO Director CEO, Regen Renewables (Pvt) Ltd. & Secretary, Solar Industries Association, Sri Lanka

Countries world over are moving away from fossil fuels as a proactive measure to reduce carbon footprint and slow down global warming. Sri Lanka is treading in these footprints with the pledge by his excellency the president, to have 80% of energy requirements met by renewable sources by 2030. A new state ministry was established with a young and energetic state minister appointed to focus on achieving this target. It is encouraging to note the thermal power expansion plans too moving towards LNG plants, which are relatively cleaner than other fossil fuel based technologies. Sri Lanka’s power generation was dominated by major hydro plants in the eighties and nineties, but changed into more thermal based mix with the new millennium. Sri Lanka has approx. 16,300 GWh annual electrical energy demand, of which renewables shares vary from 40% to 45% based on contributions from major hydro plants. Other renewable sources – ORE which consist of mini & micro-hydro, solar, wind & biomass contribute around 12% only. It is evident that a quantum leap in integrating ORE to the grid is needed to achieve RE targets. A highly successful rooftop integration scheme called ‘Soorya Bala Sangramaya’ (Battle for Solar) was launched in September 2016, with the target of installing 1 GW on 1,000,000 rooftops by 2025. Initial target of 200 MW by 2018 was achieved ahead of time

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but due to various pressures for tariff revision and bottlenecks in the system, it has been stalled since 2019. Similarly, very few ground-mounted solar power plants and wind power plants have been added to the national grid since 2013 due to non-availability of a feed-in-tariff. All initiatives for wind and ground mounted solar plants have since been through a competitive bidding process, which has not been successful in timely implementation. Tenders were floated for 80 MW of wind and 320 MW of ground mounted solar projects, most recent being 150 MW of solar in multiple locations in July 2020. While 10 MW wind projects are grid connected, less than 20 MW of ground mounted solar projects have been connected of 130 MW awarded. In contrast 285 MW of rooftop systems have been grid-connected. Securing projects with very low-tariff and procedural complications in acquiring and clearing land for RE projects have been the key contributors for prolonged delays. In industry expert’s opinion, aggressive plans to ramp-up rooftop solar integration and more relaxed methodology to encourage integration of ground mounted solar and wind power projects is needed to achieve the set national targets. State minister has shown keen intent to introduce a low interest loan scheme to boost rooftop solar integration to reach 1 GW target by 2025. 5 GW of solar capacity on rooftop, ground and floating systems combined is predicted as an ambitious but realistic target by 2030. Mid-range floating solar systems will encourage distributed generation, while saving precious land for our island nation. With careful planning, aggressive time-bound action plans and support from the authorities; achieving the 2030 renewable energy target is a distinct possibility.

PG 15

G. SRINATH Business Development (Solar), Avant-Garde

In the Association of SouthEast Asian Nation (ASEAN) countries, the new policies are established in several countries hoping to spur the growth of solar, according to ASEAN Centre for Energy (ACE). Vietnam has replaced the net-metering method for rooftop solar projects with the direct consumptiondirect supply method. Vietnam also amended their Feed-in-Tariff (FiT) policy for solar based on regions, instead of a fixed rate as the previous one. This change is to optimize solar investment even in the cloudiest corners of the country. Vietnam became a solar giant last year as the solar installation skyrocketed in the two years since Feed-in-Tariff (FiT) was enacted. By June 2019, Vietnam hit 4.5 GW solar installation, which exceeded Australia’s capacity, or the rest of ASEAN countries combined as the round of the first FiT closed. It is also reported that in September 2019, ASEAN largest solar farm began operation in southern Vietnam. The 420 MW solar installation, the largest of its kind, started production in Tay Ninh.

Generating Authority of Thailand (EGAT) also started the installation of five floating solars in five provinces since April 2019. The Philippines has also explored floating solar by constructing a testbed in Southeast Asia’ s third-largest lake, to evaluate whether the technology can withstand typhoons in Philippine’ s stormy weather. Cambodia also completed a 2. 8 MWp floating solar. During the present COVID-19 pandemic, Renewable Energy proj ects continuously experience inevitable struggles. However, currently ASEAN governments see that RE could be an integral part in re-building energy resiliency of the region as the new normal begins. RE shall and will be the driver for ASEAN to look towards a green recovery plan, ensuring the economic rise and sustainability are inline. After the half-year pandemic hit, there might be a silver lining that this COVID-19 outbreak is giving ASEAN a chance to re-orient its economy to be greener with renewable being the key solution.

FLOATING SOLAR TO GENERATE 900% MORE ELECTRICITY ACROSS ASIA – PACIFIC"

Thailand has also launched a net-metering scheme for residential PV. Thailand’s solar power market is heating up after the launched of the new Power Development Plan for 2018-2-37. The revised target under the new PDP is aiming to have 10 GW solar addition for household rooftops by 2037 and 2.7 GW floating solar. Cambodia, after several successful pilot projects, has introduced projects in the form of Competitive bidding /Auction. There are four tender projects of 60 MW is offered under Built-Own-Operate (BOO) scheme. Malaysia has opened the third round of Large-Scale Solar (LSS3) with an estimated RM2 billion worth projects. Several ASEAN countries are into floating solar. The technology is something that ASEAN shall explore as the region has vast potential, considering many water bodies and long-shore to be utilized. Singapore which has a geographical limitation of utilizing groundmounted solar is developing the world’s largest floating solar arrays in the strait of Johor. According to the Institute for Energy Economics and Financial Analysis (IEFA), “floating solar to generate 900% more electricity across Asia – Pacific; From below 1MW before 2019, ASEAN nations now have over 51MW installed and 858MW planned”. The Electricity | ASEAN | AUG SEPT ISSUE 2020

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KU JUN HEONG Senior Sales Director, Asia Pacific Region, Trina Solar

PROPELLING ASEAN TOWARDS A CLEAN POWER FUTURE In line with the global ambitions, ASEAN has set a target of turning 23% of its primary energy renewable by 2025, according to the report of International Renewable Energy Agency (IRENA) and the ASEAN Centre for Energy. This objective implies a two-and-ahalf-fold increase in the modern renewable energy share compared to 2014. The renewable energy would not just be a sustainable solution, but it would also lower the costs and contribute to cleaner cities. Technology plays an important role along with a developed policy and institutional framework. Since the ASEAN countries are integrating renewable into existing grids, the emerging technology trends can help solar generation be more robust. Since 2019, there are records of renewable energy capacity installations in Southeast Asia, driven almost entirely by solar energy. Policy-driven markets, direct PPAS, auctions, energy investments are some of the indicators of attempts for utilizations of available resources. Solar energy is expected to have a lower levelized cost of electricity (LCOE) compared to coal and natural gas in the Asia-Pacific region. As a global leading provider for PV modules and smart energy solutions, Trina Solar delivers PV products, applications and services to promote global sustainable development. Through constant innovation, it continues to push the PV industry forward by creating greater grid parity of PV power

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and popularizing renewable energy. Its mission is to boost global renewable energy development around the world for the benefit of all of humanity. The greater power output and efficiency of new solar modules coming onto the global market will help ASEAN achieve a major shift to renewable energy. Trina Solar’s Vertex 600W/550W series ultra-high power modules have created a new product technology platform. With enhancements in technology, the conversion efficiency is on track to push past 24%. Combining the optimization in module design as well as improvements in load capacity and downstream installation, the power delivered by the Vertex series modules will continue to increase. These enhancements create huge potential for the iterative development of PV modules, further driving the continuous decrease in the cost of PV systems and LCOE of PV power generation. The photovoltaic industry needs to be an open, innovative and collaborative ecosystem. The 600W+ Open Innovation Ecological Alliance was established this year for the joint efforts of the initiators and partners dedicated to developing the industry. The alliance consisted of 57 leading companies by Aug 28 will focus on accelerating the mass production of high-efficiency cells, collaborate with companies in technology development, the supply chain, innovation chain, etc. to promote 600W+ ultra-highpower modules and accelerate the production of high-efficiency cells. Trina Solar’s new product technology platform and latest development of the alliance are pushing forward application of PV as an energy source not only in ASEAN but also worldwide. As a global leader in the solar industry, Trina Solar is playing an important role in contributing to ASEAN’s renewable energy development.

PG 1 7

HARISH BALASUBRAMANIAN, Marketing Research

the primary roadblock in the region is its economic status, excepting one/two member nations. Cleaner and sustainable energy sources are still costlier, as well as more maintenance is required, given the current technological state.

Manager, LDRA

The ever-growing concern of greenhouse gas emission and consequent climate change has led to compulsory adoption of not just clean energy sources, but also sustainable energy. The Association of Southeast Asian Nations (ASEAN) formed, aiming to achieve association to accelerate economic growth and social progress. All members of ASEAN put together, constitutes one-fifth of the world economy. Given the geographic advantage of the member countries, ASEAN is at the forefront of abundant access to natural resources. It is this unique proposition that is enabling ASEAN to fast track the commitment to clean and sustainable energy sources. According to the UN, up until 2016, the conventional source of energy has been the primary energy supply. But an interesting observation is that the percentage of renewable energy supply has come down drastically as compared with 1990. Fossil fuels have dominated the energy mix in the region, especially in nations with higher incomes, while renewables had ahigher share in with lower incomes. With aggressive targets of securing 23% of its primary energy from renewable sources by 2025, introspection of the potentials and challenges for ASEAN can help us understand the possibilities towards achieving the ambitious goals. Given the existing installed base capacity, the provision to expand installed base capacity towards a cleaner energy source is possible. But the question of how sustainable would the options be? The most and

Financial access has been the key challenge to most of the member nations, havingobserved the capitalintensive nature of the cleaner energy sources. A lack of regulatory framework and very minimal coordination amongst the government agencies as with the private industry participants add fuel to the already existing fire. The region is not yet fully harmonized for policies beyond the country level, except a few member nations. On the positives, the geographical condition requires a lot of associated activities like that of transmission and distribution poses an excellent opportunity for smaller and robust systems. There is a lot of opportunity for the whole of region to enable the region in attaining its goal towards a cleaner and sustainable energy with the continually decreasing affordable clean energy â&#x20AC;&#x201C; on all three prongs: the common people, the governments, and the industry associated with providing products and services. LDRA has been the pioneers and instrumental in many of the process standards and coding guidelines since 1975. Its assured tools and capabilities enable all product developmentenvironment as well as the ecosystem with faster and cost-effective solutions to world-class product development to achieve clean and sustainable energy goals. With extensive integrations with all tools across the lifecycle, LDRA has been the preferred ecosystem partner for all safety, security &amp; mission-critical domains. Boasting a worldwide presence, LDRA is headquartered in the United Kingdom with presence in the United States, India and Germany coupled with an extensive distributor network.

THIS IMAGE CAPTURES THE POTENTIAL OF THE REGION IN ACHIEVING CLEANER AND ALTERNATIVE ENERGY SOURCES, AS ANALYZED BY THE ASEAN CENTRE OF ENERGY IN THE 4 TH ASEAN ENERGY OUTLOOK. source: ASEAN Centre for Energy

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PG 18

SOLAR ENERGY

ASEAN NEWS UNDER THE SPOTLIGHT

MOFO ADVISES ON SEACEF, A US$2.5 BILLION CLEAN ENERGY INVESTMENT FUND FOR SOUTHEAST ASIA Morrison and Foerster (MoFo) advised the European Climate Foundation, a major philanthropic initiative to help tackle climate change by fostering the development of a low-carbon society, on the formation of the Southeast Asia Clean Energy Facility (SEACEF). SEACEF, a “first-of-its-kind” philanthropic initiative based in Singapore, aims to catalyze US$2.5 billion for clean energy investments in Southeast Asia, including wind and solar power, electrical grid transmission infrastructure, energy efficiency in buildings, and electronic mobility and storage. The MoFo team was led by Singapore Investment Funds partner Jason Nelms and San Francisco Corporate partner Susan Mac Cormac, with assistance from Hong Kong Tax partner Matthew Lau, Investment Funds associate Marcus Sik Kin To, and Tax associate Andrew Chin. The Morrison Government is helping fast-track Australia’s largest renewable energy infrastructure project which aims to power the Northern Territory and Southeast Asia injecting billions into the economy and creating thousands of jobs.

AC ENERGY CLINCHES GREEN PROJECT OF THE YEAR AWARD Ayala Corporation’s power generation arm, AC Energy, continues to reap global recognition as it bags the coveted “Green Project of the Year” award for its US$410 million maiden Green Bonds at the recently concluded The Asset Triple A Infrastructure Awards 2020 (ASEAN), which honors key institutions that have contributed to region’s economic growth and development. The award highlights AC Energy’s landmark Green Bonds, the first publicly syndicated Climate Bond Initiative-certified US$ Green Bonds in Southeast Asia, anchored by International Finance Corporation and the Asian Development Bank as key investors. The bonds are also aligned with the ASEAN Green Bond Standards. This is the fifth industry distinction received by AC Energy from The Asset, having previously won awards for Renewable Energy Deal of the Year (Ninh Thuan Solar), Best Green Bond, Best Issuer for Sustainable Finance, and Best M&A Deal.

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NEXT SOLAR DESTINATION IN SOUTH EAST ASIA: GLOBAL SOLAR COUNCIL HIGHLIGHTS REGIONAL PV OPPORTUNITIES AND COUNTRY OUTLOOKS The potential for South East Asia’s solar PV markets is forecast to be close to 35 GW by 2024 as investment in solar energy is driven by strong government policies and some markets are now beginning to be developed with little or no government support. Despite the vast opportunities, the main countries in this region are following different trajectories and are at different points in the evolution of the sector: while Vietnam and Malaysia have seen explosive growth recently and even figured among the world’s top markets in terms of newly installed capacity, large economies such as Indonesia still have a relatively low penetration of PV, given their potential. The outlook for different technologies includes large-scale installations, rooftop solar and even a huge pivot to floating PV in countries such as the Philippines. To better understand the situation in South East Asia and analyse the regional and country dynamics, the Global Solar Council brought together expert observers, academics and industry representatives in a webinar, organised in collaboration with the Asian Photovoltaic Industry Association (APVIA) and SolarQuarter.

PG 19

VIETNAM

VIETNAM'S SOLAR ENERGY SECTOR IS THRIVING The energy demand will rise by over 10 per cent per year by the end of 2020 and by 8 per cent per year in 2021-2030 in Vietnam. Although the coronavirus has severely affected the economies of the major countries, Vietnam’s economy grew by 1.81 per cent in the first half of 2020. Vietnam’s economy is expected to bounce back up to 6.8 per cent in 2021.Vietnam has adopted the Renewable Energy Development Strategy till 2030 with an outlook to 2050. The strategy broadly aims to promote the use of renewable energy sources and environmentally friendly natural resources. There has been an increase in green energy projects from foreign investors in Vietnam. The country had 121 solar power projects with a capacity of 8,100 MW at the end of 2018, and the authorities were dealing with 220 pending projects. It is expected that wind and solar power sectors will rise and hit 19.9 GW by 2030 in Vietnam. There has been a growing number of solar energy projects in Vietnam because the Vietnamese government adopted incentives for solar power investment projects including the reduction of land-use fees, land rent, and surface water.

RECORD NUMBER OF SOLAR POWER PLANTS PUT INTO OPERATION IN Q2 IN VIETNAM Nearly 90 solar power plants with a total capacity of about 4,000 MWp were put into operation in the second quarter of this year, setting a record so far, the Electricity of Vietnam (EVN) reported.EVN said despite difficulties caused by the impact of the COVID-19 pandemic, the group, relevant agencies and localities have made great efforts to complete the power transmission infrastructure in service of 113 solar and wind power projects whose cumulative capacity reaches 5,700 MW. Renewable energy projects included in the planning scheme have a total capacity of 17,000 MW. Among them, many solar and wind power projects are expected to be put in place soon to benefit from the fee-in-tariffs (FIT) price mechanism. At the end of August 2020, solar and wind power projects of nearly 23,000 MW had been approved, with solar electricity making up about 11,200 MW.

EXIM THAILAND JOINS HANDS WITH ICBC TO SUPPORT SUPER ENERGY CORPORATION GROUP’S INVESTMENT IN 50 MW SOLAR FARM IN VIETNAM EXIM Thailand in collaboration with ICBC (Thai) and ICBC Hanoi has rendered financial facilities amounting to 38.39 million US dollars to Super Energy Corporation Plc. for its investment in a solar power plant with a capacity of 50 MW in Phu Yen Province of Vietnam. EXIM Thailand has collaborated with ICBC (Thai) and ICBC Hanoi in providing the credit facilities to promote and encourage Thai investors with high potential to invest in renewable energy projects in response to demand from both public and private sectors in Vietnam after the Vietnamese government’s liberalization of renewable energy business under the National Energy Development Master Plan.According to the plan, solar power generating capacity is targeted to jump from 850 MW in 2020 to 12,000 MW within 10 years. This financial support is in line with the Thai government’s policy to foster connectivity within ASEAN and expand Thailand’s economic cooperation with the neighboring countries toward sustainable national and regional development going forward.

RISEN ENERGY INKS EPC CONTRACT FOR A 250 MW PROJECT IN VIETNAM Risen Energy Co., Ltd. recently announced that the company will provide EPC services for Xinghai Group’s 4/5 project (totaling 250 MW) in Loc Ninh, Vietnam, and is expected to complete shipment this December. The facility, one of the largest privately-funded EPC projects worldwide, will help the company further improve its competitiveness in the Vietnamese market once it has been successfully connected to the grid. Risen Energy will provide highefficient Jaeger components for the project, which are more resistant to LID and LeTID. In addition, the components are expected to lower LCOE and increase revenue from the facility’s power generation. As one of the first PV companies entering the Vietnamese market, Risen Energy quickly implemented a strategy focusing on resource localization, recruiting local talents, and establishing local branches. | ASEAN | AUG SEPT ISSUE 2020

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VIETNAM VIETNAM ISSUES NEW CIRCULAR ON PPAS FOR SOLAR FARMS AND ROOFTOP SOLAR The Ministry of Industry and Trade of Vietnam (MOIT) recently issued new Circular No. 18 replacing Circular No. 16 and drafted detailed guidelines on the development of solar power projects in Vietnam. This followed the Prime Minister’s Decision on the new FiTs for solar power. Besides, it also introduces a new model of power purchase agreements for grid-connected solar farms and another for gridconnected rooftop solar systems, clarifying and updating previous Model PPAs. As of early June 2020, there have been more than 31,100 RSP systems across the country, with a total installed capacity of more than 640MWp, a net output of more than 145 million kWh, the total cost amount of power paid to customers by EVN is more than VND 300 billion.

VIETNAM RECORDED FAST SPEED OF DEVELOPMENT OF ROOFTOP SOLAR POWER SYSTEMS : HOANG QUOC VUONG Deputy Minister of Industry and Trade, Hoang Quoc Vuong recently stated that Vietnam had a fast speed of development of rooftop solar power systems and partly met the demand for electricity consumption. New projects are allowed to connect with the system in areas with possibly releasing capacity in accordance with the Ministry of Industry and Trade policy. The ministry will continue creating favorable investment conditions for projects following the Decision No. 13/2020/QĐ-TTg of the Prime Minister. Ho Chi Minh , a city in Vietnam, plans to have 1,000 MWp of solar rooftop power capacity installed by 2024 in its industrial parks, export processing zones, and high-tech parks from 700MWp now. According to the Vietnam Electricity (EVN), around 42,187 rooftop solar power projects have been put into operation so far with a total capacity of 925.8MWp. HCM City Export Processing Zones and Industrial Parks Authority (Hepza), Hepza Business Association (HBA), and Electricity of HCM City (EVN) launched a program in the zones to encourage businesses to participate and to meet the goal of 1,000 MWp.

VIETNAM’S NEW POWER DEVELOPMENT PLAN MUST OPTIMIZE RENEWABLES AND AVOID FOSSIL FUEL LOCK-IN Implementing Vietnam’s soon-to-be-launched next Power Development Plan will ultimately depend on the country’s ability to mobilize more innovative sources of offshore financing, finds a new report by think tank the Institute for Energy Economics and Financial Analysis (IEEFA). Vietnam is poised to launch Power Development Master Plan 8 (PDP 8) for the next decade featuring a timely departure from reliance on inflexible coal-burning independent power plants and a move towards renewable energy and liquefied natural gas (LNG).Report co-author Melissa Brown says state utility Electricity of Vietnam’s (EVN) ability to embrace renewable energy technologies and avoid lock-in will be key to the success of the new strategy. The authors suggest the most dynamic aspect of the power development plan’s progress will be how well EVN and the Ministry of Industry and Trade can optimize renewable energy sources that will unlock low-cost investment capital and cheaper power generation. | ASEAN | AUG SEPT ISSUE 2020

PG 22

VIETNAM

BCPG TO BOOST ITS PROGRESS WITH 1.3 BILLION NEW ORDINARY SHARES According to BCPG’s five-year plan, the Company aims to expand its renewable energy businesses in Asia-Pacific and CLMV countries with an investment fund of more than THB 4.5 million. To achieve its goal and enhance its financial position, on August 20, 2020, the Company conducted the capital increase through the issuance of 1.3 billion units of new ordinary shares, expecting to earn THB 1.035 million. The 64% of funds from a capital increase (or approximately THB 6,650 million) will be distributed to existing and under development projects. Four solar power plants located in three provinces in Thailand – Kanchanaburi, Lopburi, and Prachinburi – with a total production capacity of 20 MW. 600-MW wind power project in Laos and a 500-kV transmission line system project of which power purchase agreement has recently been approved by Vietnam’s government. The projects are expected to start commercial operations and sell electricity to Vietnam in 2023. Loan payments for hydropower plants in Laos – Nam San 3A and Nam San 3B – including a construction of a 200-kV transmission line system project for selling electricity from the two hydropower plants to Vietnam.

WFW EXPANDS HANOI OFFICE AS MATT LORIMER REJOINS FIRM AS PARTNER

TRUNG NAM GROUP ENERGIZES TRANSFORMER PROJECT COMBINED WITH 450 MW THUAN NAM SOLAR PLANT On September 29, 2020, at Quan The village, Phuoc Minh commune, Thuan Nam district, Ninh Thuan province, Trungnam Group energized the transformer station and 220 / 500kV line transmission line project combined with Trung Nam Thuan Nam Solar Power Plant 450 MW. The substation has 02 transformers 500 kV / 900 MVA designed and manufactured by SIEMENS. Two transformers with a total capacity of 1800 MVA are capable of supplying electricity to two provinces and cities. Transformer capacity 900 MVA, is the largest capacity gram in most countries in the world today. These are the most important equipment of the project, acting as the “heart” of renewable energy power projects when performing the task of increasing – reducing voltage to ensure suitable demand for electricity consumption. Meanwhile, the transmission line of 500kV, 220kV is longer than 17km stretching from Phuoc Minh commune, Thuan Nam district, Ninh Thuan province to Vinh Tan commune, Tuy Phong district, Binh Thuan province.

Watson Farley & Williams (“WFW”) is delighted to announce that banking and finance specialist Matt Lorimer has re-joined the firm in Hanoi as a Partner after two years as a Senior Associate with Allen & Overy in Singapore. Matt was previously a Senior Associate in WFW’s Hong Kong Office for two years, during which time he was actively involved in Vietnam matters. Prior to that, Matt was Counsel at Herbert Smith Freehills in Moscow and London, where he spent eleven years following qualification. Matt specialises in a broad range of finance transactions, including project finance, acquisition finance, ECA-backed finance, and commodity finance. He has a focus on energy-related transactions, especially in emerging markets, and has advised on some of the largest and most complex finance transactions in South East Asia.

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PG 23

MALAYSIA

JAG BHD INKS AGREEMENT WITH RHSSB TO PARTICIPATE IN MANJUNG SOLAR POWER PLANT BID JAG Bhd, Waste management service provider in Malaysia has announced that it inked a lease agreement to participate in the bidding process for the LSS@MEnTARI programme (Large Scale Solar) for 29MWac capacity. JAG Renewable Energy Sdn Bhd (JRESB) had entered into an agreement with Perak-based construction and property development firm RH Silver Sdn Bhd (RHSSB) to lease 112 acres (45.32ha) of land in Manjung to bid for the project, JAG said in a statement .It added that by 2023 power plants under the LSS@MEnTARI programme are expected to start operating. The development of each plant will take up to 18 months. JRESB will lease land for a period of 23 years, including a renewal term of 10 years or as mutually agreed upon by RHSSB and JRESB after the expiry of the lease term. To kick start the economic recovery and the subsequent growth engine, the Ministry of Energy and Natural Resources (KeTSA) of Malaysia had launched a 1GW tender in 2016 under the Large Scale Solar (LSS) program. The program’s fourth round of auctions termed as LSS-4, offers the largest capacity in the series and is expected to boost COVID-19 economic recovery efforts of the government. The LSS-4 tender is expected to restart the investment flow and result in a possible generation of 12,000 job opportunities, says GlobalData, a leading data and analytics company.

MALAYSIA’S SAMAIDEN GROUP LISTED ON ACE MARKET Samaiden Group Bhd has acquired approval from the authorities to list on the ACE Market of Bursa Malaysia Securities Bhd, the solar photovoltaic systems and power plants firm said in a statement. The group’s initial public offering (IPO) includes a public issue of 61.16 million new ordinary shares, whereas 10.5 million shares will be made available for application by the Malaysian public. Another 23.36 million shares will be made available to identified investors, 21 million shares to Bumiputera investors and 6.3 million shares for eligible directors, employees and persons. The bulk of the IPO proceeds will be used for the group’s working capital, business expenditure as it taps into regional markets starting with Vietnam, purchase of corporate office with storage facilities, and capital expenditure as the group expands by undertaking more engineering, procurement, construction and commissioning (EPCC) projects of renewable energy facilities.

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DRIVING NATIONAL RENEWABLE ENERGY AGENDA WITH SOLAR ROADSHOW To heed the call for higher adoption of renewable energy and the government’s target of achieving 20% power generation capacity with renewable energy by 2025, the Malaysian Photovoltaic Industry Association (MPIA) had launched the MPIA Solar Roadshow 2020-2021 to serve as a platform in providing one-stop information on policy, programme, tax incentive, financing, insurance coverage, risk and return of investment, solar leasing and power purchase agreement (PPA) on rooftop solar photovoltaic (PV) system investment. The MPIA Solar Roadshow 2020-2021 is taking place in seven locations nationwide until April 2021, with energy consumers especially those in the commercial and industrial sectors as the target audience. It has received overwhelming support from different quarters, with SEDA, MIDA, ST, Invest Selangor, InvestPerak and the Asian Photovoltaic Industry Association (APVIA) being the supporting organizations. Due to standard operating procedure amid the COVID-19 pandemic, only one hundred participants are allowed to join the conference at the solar roadshow.

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SINGAPORE

ENERGY MARKET AUTHORITY OF SINGAPORE AND IEA LAUNCH TRAINING PROGRAMME FOR SUSTAINABLE ENERGY POLICIES IN SMART CITIES More than 250 participants from 27 countries took part in the inaugural digital edition of the Singapore-IEA Regional Training Programme on Sustainable Energy Policies for Smart Cities. The International Energy Agency (IEA) estimated that Southeast Asia’s electricity demand is set to grow at an average rate of 4% annually, based on policy settings. This could result in a doubling of demand by 2040 from 2019 levels. The growth is driven by urbanisation, industrialisation and rising consumption by a growing middle class. This presents a golden opportunity for Association of SouthEast Asian Nations (ASEAN) cities to adopt smart, low-carbon solutions and meet rising energy demand in the most efficient way possible.The training programme was the fourth activity under the Singapore-IEA Regional Training Hub initiative, which was launched in 2016 when Singapore became an Association Country of the IEA.

DBS FINANCES 60 MWP FLOATING SOLAR PHOTOVOLTAIC SYSTEM DBS Bank has recently provided a $40 million loan facility to Sembcorp Industries to build a 60 megawatt-peak (MWp) floating solar photovoltaic (PV) system on Tengeh Reservoir in Tuas, Singapore. The reservoir, scheduled to begin full commercial operations in 2021. it covers an area of around 32 hectares and will generate energy to power about 16,000 four-room HDB flats, offsetting about 32 kilotons of carbon emissions annually. Singapore aims to achieve a solar target of at least 2 gigawatt-peak (GWp) by 2030. As part of its transition to a low-carbon economy, With this project, Sembcorp will be one of the largest renewable energy players in Singapore with 240 MWp (approximately) of solar capacity.

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ELECTRIFY TO TAP US$60M SOLAR ENERGY OPPORTUNITY IN SOUTHEAST ASIA WITH LAUNCH OF SINGAPORE’S FIRST PEER-TO-PEER ENERGY TRADING PILOT Electrify, Singapore’s foremost energy innovation company, announced the launch of the first commercial pilot-project for peerto-peer (P2P) energy trading in the city-state. This project will allow consumers to purchase renewable electricity produced by private solar panel owners via an online marketplace from across the city. One of the first few of its kind in the world, the pilot is conducted in collaboration with Senoko Energy, one of Singapore’s largest and most established energy companies, and is sponsored by ENGIE Factory, the venture arm of French multinational electric utility company, ENGIE. The joint service for this pilot is called SolarShare and is built on Synergy, an advanced P2P energy trading platform that can catalyse a renewable energy transition across Southeast Asia, enhancing Electrify’s ability to leverage the region’s strong growth potential for solar energy. Electrify has forecasted US$60M worth of solar energy to be transacted across major Southeast Asian markets by 2023, a significant increase from US$2.6M next year. Through collaborations with regulators and key industry players, Electrify aims to capture approximately 30 percent of the regional renewable energy market with Synergy.

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SINGAPORE

SEMBCORP INDUSTRIES LAUNCHES SEMBCORP ENERGY FOR GOOD FUND WITH INITIAL INJECTION OF S$1.5 MILLION Sembcorp Industries (Sembcorp) launched the Sembcorp Energy for Good Fund. The initiative aims to support community development with an initial injection of S$1.5 million by the Group. This year, over S$1 million will be used to provide relief to the social sector and migrant workers – to ensure these support pillars of the community can continue to deliver essential services amid the COVID-19 pandemic. In addition, the Fund will also show appreciation to essential workers in the energy, water, waste and environmental services. In partnership with The Community Foundation of Singapore (CFS), a portion of the Fund will be used to help smaller charities with limited reserves defray their operating costs. The Fund will provide grants totalling S$350,000 to 35 eligible charities. This will enable them to continue serving vulnerable individuals and groups in the community. Each S$10,000 grant will help to cover the charity’s utilities expenses for between six and 12 months on average, depending on usage.

PUB AND SEMBCORP COMMENCE CONSTRUCTION OF 60 MWP FLOATING SOLAR PHOTOVOLTAIC SYSTEM ON TENGEH RESERVOIR National Water Agency PUB and Sembcorp Floating Solar Singapore, a wholly-owned subsidiary of Sembcorp Industries (Sembcorp), announced the commencement of construction of the 60 megawattpeak (MWp) floating solar photovoltaic (PV) system on Tengeh Reservoir. This marks a significant milestone in building one of the world’s largest inland floating solar PV systems, which not only helps to reduce dependency on fossil fuels and thus carbon emissions, but also builds national climate resilience for a more sustainable future. Beyond rooftops and vertical spaces, PUB’s large expanse of water bodies and reservoirs can now serve the dual purpose of water catchment and electricity generation. This large-scale floating solar PV system at Tengeh Reservoir – the first of its kind in the region – will enable Singapore to be one of the few countries in the world to integrate green technology with water treatment. When the project begins full commercial operations next year, the amount of clean energy generated will be sufficient to power PUB’s local water treatment plants, offsetting 7% of PUB’s annual energy needs.

| ASEAN | AUG SEPT ISSUE 2020

SUNSEAP TO SUPPLY FACEBOOK IN SINGAPORE WITH SOLAR POWER FROM OVER 1,200 ROOFTOPS Sunseap Group, the Republic’s leading solar energy company, will supply Facebook with renewable energy to support the tech company’s operations in Singapore, including Facebook’s first custom-built data centre in Asia. The transaction with Sunseap will help Facebook—one of the largest corporate purchasers of renewable energy globally—reach its goal of supporting its operations in the region with 100% renewable energy and reducing greenhouse gas emissions by 75%. This is a first-of-its-kind virtual power purchase agreement (VPPA) between Sunseap Group and Facebook and the largest in Singapore in terms of solar capacity under a VPPA. This is a first-of-its-kind virtual power purchase agreement (VPPA) between Sunseap Group and Facebook and the largest in Singapore in terms of solar capacity under a VPPA. A VPPA is a contract structure in which a power buyer agrees to purchase a project’s renewable energy for a pre-agreed price. The energy can be produced from a renewable energy project that is located away from a company’s premises, but co-located on the same grid. In this case, the renewable energy credits (RECs) that Facebook will receive will come from electricity produced from solar panels exported from Sunseap’s solar projects located on the rooftops of 1,200 public housing residential blocks and 49 government buildings across Singapore. It is expected that these rooftops could total 100MWp of solar capacity when fully completed in 2022.

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THAILAND

B.GRIMM SIGNS PPA WITH EGAT FOR DEVELOPMENTS OF 5 COMBINED CYCLE COGENERATION POWER PLANTS B.Grimm Power Public Company Limited (“B.Grimm Power”) recently announced that the long-term Power Purchase Agreement (“PPA”) with Electricity Generating Authority of Thailand (“EGAT”) and industrial users were signed, regarding to the developments of 5 combined cycle cogeneration power plants to replace the expiring power plants (SPP Replacement) and 2 new SPP power plants (“BGPR 1-2”) with technology supports from Siemens and Toshiba Plant Systems & Service Corporation (TPSC). These 5 SPP replacement projects with total capacity of 700 megawatts are scheduled for commercial operation in 2022 to replace some existing SPP projects with total capacity of 564 megawatts, consisting of Amata B.Grimm Power 1 project, Amata B.Grimm Power 2 project, B.Grimm Power (Laem Chabang) 1 project and 2 projects under B.Grimm Power (AIEMTP).

THE WORLD BANK AND THAILAND’S SECURITIES EXCHANGE COMMISSION HELP INVESTORS NAVIGATE SUSTAINABLE FINANCING The Securities and Exchange Commission (SEC) of Thailand and the World Bank jointly organized an online knowledge sharing seminar on Sustainable Investments and Environmental, Social and Governance (ESG) as part of SEC’s efforts to promote the development of sustainable capital markets and green ing the financial system in Thailand.Sustainability is a top priority for the Thai SEC and the World Bank. Proactive management of ESG issues offer attractive opportunities to local institutional investors in countries like Thailand to actively contribute to the national sustainable development policies and goals of their respective countries, while enhancing their understanding of a broader range of long-term risks and sustainability-related issues. The World Bank, which has extensive experience in supporting emerging markets in the development of sustainable financial markets led the discussion about how investors across the world are incorporating ESG criteria in investment management, whether to enhance the overall riskadjusted return of a financial asset or portfolio, or to embed a meaningful environmental or social impact objective to a given investment instrument or strategy.

BCPG TO ACQUIRE FOUR SOLAR POWER PROJECTS IN THAILAND WITH THE REVENUE RECOGNITION WITHIN Q3/2020 BCPG Public Company Limited, a leader in the renewable energy business in Thailand and AsiaPacific region, has signed Shareholders Agreement with Eternity Power Public Company Limited for the acquisition of 99.99% shares in RPV Energy Company Limited, an operator of four solar power plants in Thailand, with a total production capacity of 20 MW. The four solar power plants, which have already started commercial operations, consist of a 5-MW solar power project in Lopburi province, a 5-MW solar power project in Prachin Buri province, and two solar power projects, with a total production capacity of 10 MW, in Kanchanaburi province. The revenue recognition for all projects is expected to be within this quarter from two payment schemes – Adder (15 MW) and Feed-in Tariff (5 MW).

GCPF PROVIDES LONG-TERM DEBT FOR ASIAN C&I SOLAR POWER PRODUCER CONSTANT ENERGY The Global Climate Partnership Fund (GCPF) is further expanding its financing activities in the commercial and industrial (C&I) solar space by providing Bangkok-based Constant Energy Group with a USD 15 m long term senior secured loan. The funding will be deployed in Constant Energy sizeable pipeline of solar energy projects for industrial clients in Thailand and Southeast Asia. Constant Energy is one of Thailand’s leading providers of distributed energy systems with a well-developed project pipeline. | ASEAN | AUG SEPT ISSUE 2020

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THAILAND

PRAC RESTRUCTURING WON’T AFFECT SOLAR POWER PROJECT IN KAMPONG CHHNANG: THAILAND MINISTRY Thailand’s renewable energy developer and operator Prime Road Power Public Co is setting up a new subsidiary to support the company’s expansion in Cambodia, Japan’s NNA news agency reported. The move is to restructure the holding company to support the expansion of foreign investment and project developments in Cambodia. Asian Development Bank stated that Cambodia will expand its solar energy investment by 12 per cent by the end of 2020 and increase to 20 per cent over the next three years. Prac won the rights to the project at an Electricite du Cambodge (EdC) auction in September with a low bid of $0.03877 per kilowatt-hour, said the Asian Development Bank (ADB).The 60MW project is part of a 100MW national solar park in Kampong Chhnang province. The facility will produce a capacity of 78,000kW when completed in the fourth quarter of 2021 and will be operated by EdC, according to NNA. According to its filing statement PRAC expects revenue to climb further this year to 700 million baht from electricity sales committed in agreements and 300 million baht from solar rooftop projects.

B.GRIMM INITIATES LARGEST HYBRID POWER PROJECT IN THAILAND Signing Ceremony of the Ratchaphatsadu Land Lease Agreement for Electricity Generation and Chilled Water Supply in Development of U-Tapao International Airport and Eastern Airport City Project was recently held. The hybrid power supply is made up of an 80MW gasfired power plant and a 15MW solar photovoltaic farm, as well as a 50MW energy storage system (ESS), all on land adjacent to the airport and the EAC. This project will be considered the largest by capacity in the world for this type of hybrid system and will have an internal rate of return averaging 12%. It is expected to begin operations in the year 2023. The project is part of development plans for turning U-tapao airport and the EAC into a tourism, logistics and aviation hub.

GREENPEACE AIMS AT ONE MILLION SOLAR ROOFTOPS BY 2023 IN THAILAND To speed up the country’s green and just recovery post COVID-19, Greenpeace Thailand launched an ambitious “one million solar rooftop” plan of action to be part of the country’s transformative recovery package- with significant funding and radical policy changes to promote renewable energy systems. Such a proposal can lead to the creation of green jobs , reduce power inequality, and improve Thai’s quality of life. Although Thailand is a leader in solar development in Southeast Asia, more than 90% of solar power installations in the country are large-scale solar farms instead of solar rooftops on households.

| ASEAN | AUG SEPT ISSUE 2020

BCPG TO BOOST ITS PROGRESS WITH 1.3 BILLION NEW ORDINARY SHARES According to BCPG’s five-year plan, the Company aims to expand its renewable energy businesses in Asia-Pacific and CLMV countries with an investment fund of more than THB 4.5 million. To achieve its goal and enhance its financial position, the Company conducted the capital increase through the issuance of 1.3 billion units of new ordinary shares, expecting to earn THB 1.035 million. The 64% of funds from a capital increase (or approximately THB 6,650 million) will be distributed to existing and under development projects; 1. Four solar power plants located in three provinces in Thailand – Kanchanaburi, Lopburi, and Prachinburi – with a total production capacity of 20 MW. 2. 600-MW wind power project in Laos and a 500-kV transmission line system project of which power purchase agreement has recently been approved by Vietnam’s government. The projects are expected to start commercial operations and sell electricity to Vietnam in 2023. 3. Loan payments for hydropower plants in Laos – Nam San 3A and Nam San 3B – including a construction of a 200-kV transmission line system project for selling electricity from the two hydropower plants to Vietnam. Another 36% of funds from a capital increase (or approximately THB 3,700 million) will be invested in new green power plants.

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THAILAND

B.GRIMM & AMATA TO WORK TOGETHER ON SMART CITY B.Grimm Power, a SET-listed company has teamed up with Amata Corporation, One of the second largest industrial land developers in Thailand. The operator will develop a smart city in a major industrial area. The company will build a smart grid or distributed power generation system in the industrial area which is part of its plans to expand electricity-related businesses. The smart city is based on a sustainable concept, with energy management and technology that promotes environmentally friendly operation at its core. Areas nominated for smart city development include Amata City Chonburi covering 43.3 square kilometres. The area has 772 tenants and factories and 212,741 employees. The other project is Amata City Rayong which covers 27 sq km, with 364 tenants and factories and 62,864 employees.

POWER LEDGER AND BCPG TO CREATE RENEWABLE ENERGY CREDIT MARKETPLACE IN SOUTHEAST ASIA Australian energy trading technology company Power Ledger has expanded its partnership with Thai renewable energy business BCPG to launch an additional project that aims to create a Renewable Energy Certificate (REC) marketplace in Thailand and the broader Southeast Asian region. BCPG is now seeking to sell its RECs, based on meter readings derived from the P2P platform, in a REC marketplace that spans Southeast Asia, with the process of issuing, trading and retiring RECs to be recorded on Power Ledger’s platform. The International REC Standard (I-REC) provides a global standard for energy attribute tracking, with each REC issued by IREC representing 1MW of renewable energy. I-REC is currently recognised in several countries across Asia, Africa, the Middle East and Latin America.

CONSTANT ENERGY AND SHIZEN COMPLETE ONE OF THE LARGEST CORPORATE ROOFTOP SOLAR PROJECTS IN THAILAND Shizen Energy Inc. (“Shizen Energy”) and Constant Energy completed construction of seven C&I (Commercial & Industrial) power plants with capacity of 5MW as a solar corporate PPA C&I project in Thailand. This project involves the development of rooftop C&I (Commercial & Industrial) solar power plants at the seven factories in the Bangpoo Industrial Estate, which is managed by Ampas Industries Co., LTd. (“Ampas”), one of the leading manufacturing groups in Thailand. Supplying clean, cost-competitive renewable energy from these rooftop solar power plants, the project will contribute to reducing their average electricity cost while lowering their carbon footprint.

| ASEAN | AUG SEPT ISSUE 2020

PG 30

PHILIPPINES

INDONESIA

PHILIPPINES DOE SIGNS MOA WITH DA TO BOOST RE ENERGY

STRATEGIC PARTNERSHIP PROGRAM SUPPORT INDONESIA’S CLEAN ENERGY TRANSITION

As part of collaborative efforts to boost the country’s energy and food security, especially during the novel coronavirus (COVID-19) pandemic, Department of Energy (DOE) Secretary Alfonso G. Cusi signed a Memorandum of Agreement (MOA) with Agriculture Secretary William P. Dar at the Department of Agriculture (DA) in Diliman, Quezon City. Under the MOA, the DOE and DA will develop and implement a comprehensive Renewable Energy Programs and Projects for the Agriculture and Fishery Sector (REP-AFS), as part of the National Renewable Energy Program and Food Security Program. A Joint Technical Working Group (TWG) will be created to develop the detailed programs and projects, address policy and technical requirements, and attend to other related concerns.

AC ENERGY ACCELERATES RENEWABLE ENERGY EXPANSION IN PHILIPPINES WITH TWO NEW SOLAR PLANTS AC Energy Philippines is set to develop two new solar plants in Central Luzon with an aggregate capacity of up to 150 MW. This will bring ACEN’s total Philippine projects under construction to 480 MW, which includes 330 MW of solar and 150 MW of peaking diesel plants. The first project is a solar plant with up to 75 MW capacity located in Arayat and Mexico, Pampanga, with a project cost of up to ₱ 3.3 billion. The facility is expected to start its power generation in the fourth quarter of 2021, and is ACEN’s joint venture with Citicore Renewable Energy Corporation, with a 50% economic ownership. The second project is another solar plant with up to 75 MW capacity located in Palauig, Zambales, and is fully owned by ACEN. The project cost will be up to ₱ 2.9 billion, and is expected to reach completion in the first quarter of 2022. It will be in close proximity to the 60 MW GigaSol Palauig solar plant, which was announced by the company early this year, and is currently under construction.

CAMBODIA $127.8 MILLION ADB LOAN TO HELP EXPAND POWER GRID IN CAMBODIA The Asian Development Bank (ADB) has approved a $127.8 million loan to support the construction of transmission lines and substations to help provide Phnom Penh and three other Cambodian provinces with stable and reliable electricity supply. The project will also pilot the first utility-scale battery energy storage system in Cambodia, which will be funded by a $6.7 million grant. The amount includes $4.7 million from the Strategic Climate Fund under the Scaling Up Renewable Energy Program in Low-Income Countries and $2 million from the Clean Energy Fund under the Clean Energy Financing Partnership Facility. Both funds are administered by ADB. The government has set energy sector development as a national priority, as a more robust electricity supply will boost economic productivity and quality of life.

| ASEAN | AUG SEPT ISSUE 2020

Various efforts and hard work have been carried out by the Government to accelerate the achievement of the energy mix target of 23% by 2025. The British and Indonesian governments, in this case the Ministry of Energy and Mineral Resources (ESDM) launched the MENTARI collaboration program: Towards Indonesia’s Low Carbon Energy Transition, which will run for ten years, starting from 2020 to 2030. This program is believed to be able to create inclusive economic growth and reduce poverty through the development of the renewable energy sector.

TARGETING MARITIME ECONOMY CLUSTER, INDONESIAN MINISTRY DEVELOPS MICRO GRID Realizing that there are several outermost and frontier areas in Indonesia that still have limited electricity supplies, the Government is looking for various solutions, one of which is by developing a microgrid-based electricity system. This technology will provide a small-scale, hybridbased electricity system from New and Renewable Energy (EBT). The existence of this hybrid power plant will be used to drive the economic activities of the local community based on maritime affairs. Microgrid itself will offer small-scale electricity systems using new and renewable energy potentials in certain regions. This microgrid system consists of an intelligent inverter that can convert DC energy sources from solar, water, wind and biogas to use AC electricity. The advantage of this system is that if the supply is excess, it will be stored in the battery and will be used during peak loads.

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