SolarQuarter-South East Asia : Feb-Mar Issue 2022 by SolarQuarter

Empowering, Insightful, Engaging

W W W . S O L A R Q U A R T E R . C O M

SOUTH EAST ASIA V O L U M E

W W W . S O L A R Q U A R T E R . C O M

I S S U E

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FEB-MAR ISSUE 2022 | PG 02

CONTENT NEWS

PUBLISHING

GUEST COLUMN

Firstview Media Ventures Pvt. Ltd.

EDITING Ashwini Chikkodi Nikita Salkar editorial@firstviewgroup.com

18 CHALLENGES OF INDONESIA’S SOLAR PV ROOFTOP DEVELOPMENT

IN CONVERSATION

CONTENT Sadhana Raju Shenvekar Priyanshi Pandey publishing@firstviewgroup.com

DESIGNING

Neha Barangali Radha Buddhadev design@firstviewgroup.com

KATE COVILL CEO ShireOak International Indonesia

ADVERTISING Smriti Charan Sangeeta Sridhar advertise@firstviewgroup.com

CIRCULATION Sadhana Raju Shenvekar

VAIBHAV SAHU COO SUN Energy

FEATURED TALKS

SUBCRIPTION subscribe@firstviewgroup.com

ADVERTISE WITH US Contact: Smriti Charan e: smriti@firstviewgroup.com

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BEATRICE FOSCOLI APAC Sales Manager Elum Energy

ASIA NEWS SARAWAK TO BECOME A POWERHOUSE OF SOUTHEAST ASIA Sarawak Energy plans to attain sustainable growth by becoming a powerhouse in Southeast Asia by providing affordable, renewable, and reliable energy through its renewable sector. Sarawak Energy Berhad is an energy development company and a vertically integrated power utility with a vision to achieve sustainable growth and prosperity for Sarawak by meeting the region’s need for reliable and renewable energy—providing electricity to 3 million Sarawakians in urban and rural areas. Chief Minister Tan Sri Abang Johari Openg during an event at the Sarawak Energy Berhad (SEB) Centenary Townhall said that he is confident of Sarawak achieving the targets because of its abundant natural resources and renewable hydropower.

Singapore EDP RENEWABLES TO INVEST $10 BILLION IN CLEAN ENERGY BY 2030 IN SINGAPORE EDP Renewables has stated it plans to invest S$10 billion by 2030, creating an industry-leading clean energy hub for the APAC region out of Singapore. These investments are in line with the company’s strategy for the Asia Pacific region in general, it being the world’s fastest-growing renewables market accounting for 55% of global capacity additions this decade, with solar representing 65% of the growth. Additionally, the company also closed its S$1.1 billion deal with Sunseap and has announced that all pending regulatory conditions have been met for the agreement reached in November to acquire a 91% stake in Sunseap, the largest distributed solar power operator and the fourth-largest solar power operator in Southeast Asia.

TERRENUS ENERGY WINS 70 MWP SOLAR PROJECT FROM HDB, EDB

ACEN WITH SUPER ENERGY TO DEVELOP RE ACROSS ASEAN AC Energy Corporation (“ACEN”), through its wholly-owned subsidiary, AC Energy Vietnam Investments Pte. Ltd. (“ACEV”), and Super Energy Corporation Public Company Limited (“SUPER”), through its subsidiary, Super Energy Group (Hong Kong) Co., Limited (“Super HK”), have signed an agreement to form a strategic partnership to develop, own and operate renewable energy projects across ASEAN. ACEV signed a share purchase agreement (with conditions precedent) to acquire a 49% interest in Solar NT, owned by Super HK. SUPER is a premier Thai renewable energy developer and investor. The transaction will be via secondary shares acquisition for a total consideration of US$ 165 million.

Terrenus Energy Pte. Ltd. (Terrenus Energy) and Digo Corporation Pte. Ltd. (Digo Corporation) have been jointly awarded a 70 megawatt-peak (MWp) solar contract by the Housing Development Board (HDB) and Singapore Economic Development Board (EDB). This project is the sixth solar leasing tender under HDB’s SolarNova program which will see the installation of solar panels across 1,198 HDB blocks and 57 government sites. When completed, it will become Singapore’s largest collection of distributed solar systems capable of generating at least 90 gigawatt-hours (GWh) of solar energy annually. According to Terrenus Energy’s estimations, this amount of energy is enough to power around 20,000 4-room HDB flats for one year and help to offset carbon emissions by about 38,000 tonnes per year. This is also equivalent to planting around two million trees or taking 8,000 cars off the road.

SUN CABLE RAISES AUD210 MILLION FOR AUSTRALIA-SINGAPORE SOLAR PROJECT Sun Cable has completed an AUD210 million Series B capital raise with their existing shareholders to fund the development work of the Company’s marquee project, the Australia-Asia PowerLink (AAPowerLink), as well as accelerate the progress of the Company’s portfolio of multi gigawatt generation and transmission projects. Led by Grok Ventures and Squadron Energy (a wholly-owned subsidiary of Tattarang), the capital raise will support Sun Cable’s development of the world’s largest intercontinental renewable power system, connecting Australia to Singapore, and its mission, to supply renewable electricity from resource-abundant regions to growing load centers, at scale. Enabled by a team of over 80 experts, Sun Cable has developed unique intellectual property to facilitate the optimal design of complex dispatchable renewable electricity generation and transmission projects.

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FEB-MAR ISSUE 2022 | PG 04

Vietnam

Philippines

BANPU PCL ACQUIRES 49.04% STAKE IN SOLAR ESCO OF VIETNAM

ACEN POWERS UP PHILIPPINES’ FIRST HYBRID SOLAR AND STORAGE PROJECT

Banpu Public Company Limited, a leading international versatile energy provider, has continued the expansion of its green energy portfolio by venturing into the energy technology business sphere in Vietnam. Recently, BRE Singapore Pte. Ltd. (BRES), a wholly-owned subsidiary company of Banpu NEXT Co., Ltd., in which Banpu holds 50% shareholding, has signed a Shares Subscription Agreement (SSA) for the purchase of 49.04% shareholding in Solar Esco Joint Stock Company, a leading renewable energy company and provider of integrated solar rooftop platform in Vietnam. The transaction, expected to be completed by the second quarter of 2022, is a part of Banpu’s acceleration plan toward achieving the goal of increasing EBITDA contribution from greener energy and energy technology businesses to over 50% by 2025.

ACEN has switched on the Philippines’ first hybrid solar and energy storage project. The pilot 40 MW energy storage project located in Alaminos, Laguna will allow the company to evaluate opportunities to store energy more effectively across ACEN’s portfolio, with the aim to provide a sustainable and reliable energy source for the country. The 2×20 MW energy storage facility is adjacent to ACEN’s 120 MW Alaminos solar farm and is configured to help manage internal electricity demands, store electricity when the solar plant is generating power but demand is low, and provide rapid power charging when the demand is high. It will also provide ancillary services to the national grid.

URC TO INSTALL SOLAR POWER PLANT IN PHILIPPINES SEMBCORP INDUSTRIES INKS AGREEMENTS ON RENEWABLE ENERGY AND SUSTAINABLE DEVELOPMENT WITH VIETNAM Sembcorp Industries (Sembcorp) has inked several partnerships to develop a range of energy and urban solutions that will support Vietnam’s energy transition and sustainable development. The areas of collaboration include Sustainable industrial park development; Sustainable and reliable power systems; Renewable energy and technology; and Skills and capabilities building. The signed agreements were presented to His Excellency Mr. Nguyen Xuan Phuc, President of the Socialist Republic of Vietnam, and key members of his Cabinet, on the sidelines of the President’s state visit to Singapore.

Universal Robina Corp. (URC) signs an agreement with MPower/Vantage, Bacman, and First Gen for supplying power in 18 facilities in Luzon and 2 in the Visayas through solar, hydro, and geothermal energy. This also includes factory units in Antipolo, Bulacan, Cavite, Pasig, Laguna, Cebu, and Negros Occidental. This comes after the country’s push towards netzero commitments and using renewable energy sources for its energy needs. The goal is to have all our plants utilize electricity from 100 percent renewable energy by 2025. It means balancing greenhouse gases that the company emits and removing them. The Philippines is working on reducing carbon footprints to 75% by 2030. URC in the Philippines has been installing solar panels at its manufacturing facilities. It has up to 1 megawatt installed at its plant in Canlubang, Laguna, and some 21 kilowatts at its Vitasoy facility in San Fernando, Pampanga.

NORFUND PARTNERS WITH NORSK SOLAR FOR RE IN VIETNAM Norfund, the Norwegian Investment Fund for Developing Countries is joining Norsk Solar AS and Nordic Impact Cooperation AS as investors in the 11 MW solar plant portfolio recently constructed by Norsk Solar in Vietnam. NIC is a joint venture between Norsk Solar and Finnfund, a development financier and impact investor majority-owned by the Finnish state. The investment establishes a new partnership between Norfund, Norsk Solar, and Finnfund and gives Norfund a 35 percent ownership stake in one of the largest single-client rooftop solar PV systems in Vietnam. The 11 MW project was built on-site at shopping centers owned by Central Retail, one of southeast Asia’s largest retail conglomerates. A long-term Power Purchase Agreement (“PPA”) has been signed with Norsk Solar.

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SPNEC TO SUPPLY SOLAR POWER TO AEC FOR 10 YEARS Solar Philippines Nueva Ecija Corporation (SPNEC) seals a deal with Angeles Electric Corporation (AEC) for 10 years. AEC will buy solar power of 97.8 MWh from 6 AM to 6 PM capacity per day from the 500 MW Nueva Ecija solar park of SPNEC. SPNEC is developing a 500MWp solar power plant in Barangay Las Piñas, Sinasajan, and Peñaranda, Nueva Ecija. The location has good levels of irradiance and adequate available land, making it conducive to solar power generation. Nueva Ecija can sell the remaining of its energy to off-takers and spot markets. SPNEC competed with four other bidders and secured the deal through a competitive selection process (CSP).

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Malaysia PLUS XNERGY DEPLOYS LARGEST SINGLE SOLAR SITE IN PENANG SIGNS POWER PURCHASE AGREEMENT (PPA) WITH KEYSIGHT TECHNOLOGIES

PHILIPPINES TO DEPLOY 2 GW RENEWABLE POWER The Philippines will deploy a total of 2 GW of renewable power in the country. This includes 1260 MW of solar PV with 900 MW in Luzon, 260 MW in the Visayas, and 100 MW in Mindanao of solar photovoltaic capacity. Within the above-mentioned locations, solar photovoltaic is dominant and majorly available. Wind power of 380 MW, biomass of 230 MW, and hydropower of 130 MW capacity. The Philippines has a total installed power capacity of 20 GW out of which 14.3 GW is in the Luzon area. Luzon also has the three largest grids in the country. The Philippines aims to have a 35% of renewable energy share by 2030 and increase that to 50% by 2040. The country also plans to launch the Green Energy Tariff Program auction.

In line with Malaysia’s goal to reach carbon neutrality by 2050, leading clean energy solutionist Plus Xnergy Asset (“PXA”), a wholly-owned subsidiary of Plus Xnergy Holding (“Plus Xnergy”) has signed a corporate power purchase agreement (PPA) with Keysight Technologies. The Power Purchase Agreement (PPA) is a contract between Keysight, the energy buyer, and Plus Xnergy Asset, the energy seller. Through this PPA solution, Plus Xnergy finances the solar photovoltaic (PV) system installed at Keysight’s Bayan Lepas facility, enabling Keysight to purchase electricity at lower-than-grid rates for the next 20 years. After the 20-year tenure, the system is then transferred to Keysight’s ownership where they continue to reap its benefits.

ABOITIZPOWER LAUNCHES 94 MW SOLAR PROJECT IN PANGASINAN Aboitiz Power Corporation (AboitizPower) held a virtual groundbreaking ceremony for its 94-MW peak solar power project in Pangasinan, an undertaking seen to create a “brighter future” for the province. Pangasinan Governor Amado I. Espino III welcomed AboitizPower’s multi-billion-peso project, saying that this significant investment in sustainable power generation will help address the country’s need for more and cleaner energy sources to fuel the nation’s growth. AboitizPower, through a special-purpose vehicle wholly owned by subsidiary Aboitiz Renewables, Inc. (ARI), in December last year awarded to JGC Philippines, Inc. the Engineering, Procurement, and Construction (EPC) contract for the project, with a total investment of ₱ 4.5 billion.

RAY GO SOLAR PLANS TO EXPAND ITS SOLAR PORTFOLIO ACROSS MALAYSIA Ray Go Solar Holdings Bhd plans to expand its solar portfolio business in Penang and Johor of Malaysia. This would save costs, achieve energy efficiency, and support the sustainability goals of the world. Recently, the company rose from 4 sen to 16 sen on its debut at LEAP Market. The first trade for the company was done at 10,000 shares. The company also has a venture which is into solar leasing and this will allow its consumers to adopt solar PV solutions with low investment capital. Ray Go Solar will be responsible for the installation, operation, and maintenance of such solutions.

SAMAIDEN GROUP WITH CHUDENKO CORPORATION TO EXPLORE RENEWABLE ENERGY Samaiden Group Bhd (SHB) signs an agreement with Chudenko Corporation for exploring opportunities in renewable energy in Malaysia, Japan, and overseas. It would include projects like rooftop solar in Japan and introducing technology in operations and maintenance of renewable energy with other technologies. Chudenko Corporation is one of the leading engineering companies in Japan and it also holds a 15.15% equity stake in SHB. Samaiden is an award winner of the ASEAN Energy Award 2017 is a Renewable Energy provider incorporated in 2013, principally involved in the engineering, procurement, construction, and commissioning (EPCC) of solar photovoltaic (PV) systems and power plants.

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KPOWER TO BUILD 50 MWAC PV PLANT IN MALAYSIA KPower Engineering Sdn Bhd secures a RM 104.97 million contract for a solar power plant from Fabulous Sunview Sdn Bhd. The company will build, procure, and maintain the 50 MWac photovoltaic plant in Malaysia. KPower Engineering Sdn. Bhd is a subsidiary of KPower Berhad and is committed to delivering the highest quality of workmanship and sustainable Solar PV solutions for your home and businesses. The project will be commenced after the issuance of notice from Fabulous Sunview to KPower Engineering. Fabulous Sunview will prepare engineering designs and KPower will develop the plant. The construction will be completed by Feb 28, 2023.

Thailand SHIZEN ENERGY AND CONSTANT ENERGY SIGN PPA FOR 1,169 KWP SOLAR ROOFTOP OPERATION IN THAILAND Shizen Energy Inc. (Shizen Energy) and Constant Energy concluded a long-term Power Purchase Agreement for a 1,169 kWp solar rooftop operation with Panasonic Energy (Thailand). Shizen Energy and Constant Energy have financed this operation with a THB 1.5 billion (approx. US$50 million) project finance agreement with Thailand’s local bank, TMB Thanachart Bank PCL. This is one of the largest project finance agreements for a C&I (Commercial & Industrial) project in Thailand.

BCPG TO INCREASE RE CAPACITY TO 2 GWS BY 2026 BCPG to increase the renewables power generation capacity to 2 GWs within 2026 to achieve the target of carbon neutrality by 2030. The company raised its capital spending for five-year from 65 billion baht to 95 billion baht (an increase of 46%). BCPG was created as part of the renewable power business group when the Bangchak Corporation Public Company Limited and its subsidiaries were restructured. BCPG is a vital part of the implementation of the Bangchak Corporation Plc. group of companies’ renewable power business. BCPG focuses on the development of renewable energy not just in Thailand but also in Laos and Tawan. Laos claims to be the “battery of Asia” whereas Taiwan wishes to use clean energy for its economy.

SHELL MALAYSIA INSTALLS MORE THAN 200 SOLAR PANELS AT ITS RETAIL STATIONS Shell is working with Cleantech Solar to install solar panels at its retail stations in Malaysia. So far, a total of 22,505 solar Photo Voltaic (PV) panels with a total capacity of 10.12 megawatt (MWp) have been installed on the roofs of 216 stations as part of the company’s commitment to run a safe, efficient, responsible, and profitable business. Exemplifying this, the current number of solar panels in our stations can generate 12,939 MWh of electrical energy, enough to power roughly 3740 households in a year.

BPP REVEALS 545-MW CAPACITY GROWTH FROM 10 POWER PLANTS IN 1 YEAR Banpu Power Public Company Limited (BPP), a leading power generating company with a balanced portfolio from both thermal power and renewable power businesses across the AsiaPacific region, revealed the progress of ongoing investments and commercial operation achievement of power plants, from 2021 until the present, with the increasing quality megawatts in strategic countries within Banpu Ecosystem to a total of 545 MW on an equity basis. In addition, BPP had recently undergone an assessment on sustainability performance conducted by S&P Global and achieved a very high rating while also being included in the Sustainability Yearbook 2022, all of which reflect its commitment to conduct the business following ESG principles.

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BANPU POWER TO EXPAND POWER GENERATION CAPACITY TO 5,300 MWE BY 2025 Banpu Power Public Company Limited (BPP), a power generating company for a sustainable world with a balanced portfolio of thermal power and renewable power businesses across the Asia-Pacific region, reported its operating results for the year 2021, achieving THB 6,784 million in revenue, a 23% increase compared to the previous year, with THB 3,487 million in Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) and net profit of THB 3,127 million. Last year, BPP achieved efficient business operation, continuous growth, and stable reliability in power generation and distribution at all its power plants. HPC power plants in Lao PDR and the BLCP power plant in Thailand had Equivalent Availability Factors (EAF) of 85% and 91%, respectively.

CK POWER TO DOUBLE IN SIZE IN THREE YEARS CK Power Public Company Limited or CKPower, one of the region’s largest producers of renewables-based electricity, announced that it plans to more than double in size in the next three years, supported by the global shift to renewables-based electricity, and add around 2,800 megawatts of electricitygenerating capacity. Thailand has set a goal to double the share of imported electricity generated by renewable water sources from 9% to 18% in only ten years, as well as have 30% of all new cars be electric within 2030. By the end of the next decade, the transport sector is forecast to become the largest consumer of energy in ASEAN, even ahead of the industrial sector.

TOTALENERGIES TO DELIVER 2.7 MWP SOLAR ROOFTOP FOR TOA IN THAILAND TOA Paint, a market leader in paint manufacturing in Samut Prakan, Thailand, has signed a binding, long-term agreement with TotalEnergies to provide a 2.7MWp solar PV (photovoltaic) rooftop and power 27% of the needs of TOA’s group factories with green power. TOA Paint has been a leader in the paint, coating, and total solutions in the construction industry in both Thailand and ASEAN Economic Community for more than half a century. With a strong commitment to conducting business responsibly, TOA needed a clean energy solution to drive their sustainability targets and chose TotalEnergies, known for their technical expertise in deploying renewable energy solutions around the world even for highly complex industrial sites.

SUNSOURCE ENERGY SECURES PROJECT FINANCING FROM SUNFUNDER TO EXPAND ITS SOLAR PORTFOLIO IN SOUTHEAST ASIA SunSource Energy has entered into a Project Financing agreement with SunFunder – an international solar finance company. This investment will enable the company to expand its presence in Southeast Asia. While SunSource Energy is headquartered in India, the investment will be used to provide project financing for an industrial solar installation in Thailand and is the beginning of a broader partnership as the company expands its footprint in other Asian countries.

SPCG TO BUILD SOLAR FARM OF 516 MW IN THAILAND SPCG acquires land for building renewable power units in the Eastern Economic Corridor (EEC) with 3 billion baht. The company acquired land that covers 23 areas of the EEC zone. The company plans to build a solar farm that can generate 316 MW of electricity in the first phase, and in the second phase, it will generate 200 MW. In addition, it will reduce global warming, equivalent to reducing carbon dioxide emissions into the atmosphere of the world by more than 200,000 tons of CO2 per year from the operation of 36 solar farm projects.

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Indonesia TOTALENERGIES SIGNS SOLAR ROOFTOP PROJECT IN INDONESIA Beiersdorf, one of the world’s largest skincare brands with more than 100 years of success, signed a long-term agreement with TotalEnergies for a rooftop solar PV installation to power 20% of the needs of Beiersdorf’s plant with green energy. Under the agreement, Beiersdorf’s manufacturing site will be equipped with a 540 kWp solar power system installed by TotalEnergies. The system is likely to be running from June 2022. The 830MWh of electricity generated by the system each year will reduce carbon emissions by around 660 tons every year, equivalent to charging 71 million smartphones annually. In addition to reducing the environmental footprint, Beiersdorf will be able to increase cost savings with the clean energy produced by the system for 25 years without any upfront investments.

FEB-MAR ISSUE 2022 | PG 08

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INCONVERSATION

Kate Covill CEO ShireOak International Indonesia SolarQuarter South East Asia magazine had an exclusive conversation with Kate Covill, CEO, ShireOak International Indonesia, and got some great insights on what improvements are required for Rooftop projects in Indonesia. She also spoke about what have been some key learnings for the company this year, which factors have contributed to the company’s growth, and what technologies they are adopting.

WHAT MAJOR IMPROVEMENTS ARE REQUIRED IN ROOFTOP SOLAR PROJECTS IN INDONESIA?

Solid and timely actioned PLN processes, to approve client applications or other regulatory work in accordance with regulation 26 will reassure investors new legislation is being followed Currently PLN is proposing to limit applications to 10/15% of the DAYA which has come as a bit of a shock to us all. Reducing proposed installations by 80% in cases, all of which meet regulation 26 with no overspill. These types of changes will make global investors nervous, as it is not previously mentioned in the regulation. The acceptance of overspill up to an approved %, so the production of green energy increases for Indonesia driving down costs for the customers and the price of green energy to produce, could be a smart move forwards. Mirroring Vietnam and other Asian nations, 20% overspill would seem sensible. This would provide PLN electricity to create a fantastic green tariff product for its customers. Manage carefully the 40% local production. This is a wonderful regulation but needs to be managed cautiously. As if it is implemented too early it will restrict the entire infrastructure of investment and solar adoption for Indonesia and could adversely impact and slow down the

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desired local manufacture of tier 1 modules which we all want to see. If we reach approx 2.5Gig installed capacity with 10Gig + to follow in the next few years, the big players who are bankable will look to manufacture in Indonesia to meet the requirement. But if we stifle the market with 40% too early, the desired GigWp will never be reached to kick start everything. We welcome PLN into the market as a developer alongside us all and wish to operate adjacent to them with the same opportunities. This will increase investment stability across the industry and accelerate the growth that is needed in the sector. The opportunities for additional revenue sources for PLN through embracing solar are huge, to name a few: - an internationally attractive green energy product to entice overseas manufacturers and digital players needing to meet CSR targets, energy security, development revenues, reduced reliance on subsidies, stable energy supply for remote areas funded by global investors releasing pressures on PLN’s purse, reduced reliance on diesel and generators and finally help meet COP26 commitments towards being carbon neutral by 2060 if not before.

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WHICH FACTORS HAVE CONTRIBUTED TO THE GROWTH OF ROOFTOP SOLAR IN SHIRE OAK INTERNATIONAL?

President Jokowi’s published commitment toward renewables has kick-started the economy in this sector and significantly raised the interest of investors in Indonesia. The positive embracing by Ministers of solar and driving opportunities equally for all has also de-risked the opportunity for global investors such as ours.

We are researching all options for energy storage, as this will be key for an island nation. In the future we wish to be permitted possibly to over construct to produce excess energy to support for example hydrogen production in areas where local production will bring regional economic gain. Also when storage costs drop, to be able to support the 24hr energy demand over diesel generators. Smart grid technology will also be key for small communities that will have a blend of supply. Floating solar has kicked off well and I hope it stands up to the wind strengths, this will be key for those developers and investors.

Q Q

WHAT ARE THE CURRENT CHALLENGES AND OPPORTUNITIES ESPECIALLY IN THE ROOFTOP SOLAR SECTOR IN INDONESIA?

The answer to the first question covers most of the challenges. But the importation processes also need to be clear and swift. Equipment internationally ordered or internally shipped needs to be installed rather than warehoused which will occur if importation is difficult and we have to stockpile to accommodate delays, adding to costs and creating delays.

THE SOLAR TRADE ASSOCIATION LED BY FABBY TUMIWA IESR WILL BE KEY TO THE INTERFACE BETWEEN ALL THOSE INVOLVED IN THE LEGISLATION, DEVELOPMENT, AND OPERATION OF SOLAR, I SUGGEST ALL INTERNATIONAL AND LOCAL DEVELOPERS AND COMPANIES OPERATING IN SOLAR IN INDONESIA JOIN UP. " | SOUTH EAST ASIA

WHAT ARE SOME SMART TECHNOLOGIES BEING ADOPTED IN THE SOLAR SECTOR BY SHIRE OAK INTERNATIONAL?

THE SOLAR SECTOR IS CONSTANTLY EVOLVING WITH TIME. IS THERE ANYTHING THAT YOU ARE LOOKING FORWARD TO IN THE NEXT FIVE YEARS?

The reduced use of rare, expensive, or polluting elements in module manufacture is key. Greater recycling when the time comes regards to end of life management. We cannot have mountains of old modules. Desalination has caused mountains of salt and brine runoff causing untold devastation, Solar must not fall this way. Accelerating and increasing employment in this sector and enticing students into the arena due to new degrees possibly being developed to enhance expertise.

HOW HAS THE YEAR 2022 BEEN SO FAR FOR SHIRE OAK INTERNATIONAL? ANY KEY LEARNINGS?

We have 200MWp in our rooftop pipeline for 2022 and 500MWp for GM under development. So it has been a busy year so far and I hope continues that way, I am confident working together we will all overcome the hurdles mentioned above. Our pipeline has been achieved through open collaboration with PLN and ministerial departments. Legislation is hard to follow at times and difficult when it changes and the consequences of those changes are not mooted openly but we will all manage if we work together We are thrilled to be working closely with the local Chambers of Commerce in Indonesia, the DIT situated at the Embassy the Indonesian Solar Trade Association, and all the organizations in the system that are supporting renewables for Indonesia. The Solar Trade Association led by Fabby Tumiwa IESR will be key to the interface between all those involved in the legislation, development, and operation of solar, I suggest all international and local developers and companies operating in solar in Indonesia join up.

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INCONVERSATION

Vaibhav Sahu COO SUN Energy In an exclusive interview with SolarQuarter South East Asia Magazine, Vaibhav Sahu - COO, SUN Energy spoke about the successful contributions to the solar industry, financing models offered and the RE business opportunities in Indonesia. He also gave us details of how the RE sector has performed under the covid crisis in Indonesia and the current and expected future solar PV trends in the region.

A WORD ABOUT YOUR RECENT SUCCESSFUL CONTRIBUTIONS TO THE SOLAR INDUSTRY IN INDONESIA? WHAT HAS BEEN YOUR BIGGEST CHALLENGE SO FAR AND HOW DID YOU OVERCOME THE SAME?

PT Surya Utama Nuansa (SUN Energy) is a leading solar project developer in Indonesia, having secured more than 200 MWp of solar projects within 5 years of operations since its establishment in 2016. SUN Energy is experienced in providing integrated solutions, from conception to construction including project siting and permitting, financing, market development, and solar leasing. In the year 2022, SUN has completed COD of 3.7+ MW in the first quarter, with targets to complete 20+ MW till Q3, additionally, SUN is implementing a 32.5 MW ground-mounted solar project for Indo Cement as well as rooftops for 66 filling stations for SHELL, both targeted to be completed by the end of Dec 2022.

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There are 3 key challenges of renewable implementation: Market Domination: Indonesia is not yet a producer country of renewable technologies. its implementation is still influenced by the dominance of other countries' markets. Government Support: Key players are looking for more inclusive support from government regulatory authority to help speed up the RE implementation. Infrastructure: Suitable infrastructure and technology to support is required for renewable implementation, we need to improve a lot of things before we implement the renewable. This makes increases in the project cost. Especially infrastructure related to the logistic sector.

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WHAT ARE SOME FINANCING MODELS YOU OFFER AS A LEADING SOLAR PROJECT DEVELOPER?

Whether you want to lease or own a solar power system, we have an affordable option that’s right for you! Other commercially viable RE opportunities are as follows:

The geothermal market in Indonesia became the world’s second-largest geothermal power producer, with a number of projects coming online and new concession areas awarded. The hydropower market is estimated to be USD 12.9 billion, broken into two major segments: medium and large hydropower (> 10 MW) at USD 9.5 billion and small hydropower (< 10 MW) at USD 3.4 billion. The bioenergy market is estimated to be USD 2.5 billion. This is comprised of biomass at USD 650 million, biogas at USD 200 million, waste-to-energy at USD 1.5 billion, and biodiesel generators at USD 166 million. The market for smart grid solutions is expected to open during the 2020 to 2025 period. Currently, battery energy storage systems (BESS) and advanced micro-grids are currently in the pilot demonstration stage. Given government emphasis on improving grid operability and PLN’s recognition of the value of smart transmission and distribution system control and BESS, we have estimated these markets to be USD 153 million and USD 280.5 million, respectively.

THE ONLY WAY TO SUCCEED IN INDONESIA IS TO BUILD STRONG PERSONAL RELATIONSHIPS FIRST, BEFORE SECURING DEALS; AN ON-THEGROUND LOCAL PRESENCE IS ESSENTIAL."

WHAT ARE THE NEW COMMERCIALLY ATTRACTIVE RE BUSINESS OPPORTUNITIES IN INDONESIA?

Indonesia matters as it is the 4th mostpopulous country and will be the 4th largest economy in the world by 2050. That growth will generate increased demand for energy, which will create new opportunities for renewable energy companies. Estimated Market Value of Renewable Energy and Related Projects (USD millions)

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HOW HAS THE RENEWABLE SECTOR IN INDONESIA PERFORMED UNDER THE COVID CRISIS?

The COVID-19 pandemic brings significant shocks to the world economy and energy. The implementation of lockdown and large-scale social restrictions in a certain period of time has resulted in many industries going out of business and millions of people losing their jobs. However, the success of Indonesia’s energy sector will depend on how the sector reimagines itself— and how public and private leaders address fundamental longterm challenges. Revitalizing Indonesia’s energy sector following the pandemic will require bold moves, difficult decisions, and significant investments. Players will need to reimagine and reform to address both short- and long-term challenges. COVID-19 in Indonesia resulted in lower demand for power and fertilizer combined to slow growth in demand for gas from 5 to 6 percent to only 1.4 percent. In total, energy demand drop by about 7 percent in 2020 while GDP shrinks by as much as 1 to 4 percent. The pandemic has also affected corporate profits in the energy sector, dampening enthusiasm and reducing available resources for immediate new investments. State-run power companies Pertamina and PLN reported a $768 million loss and almost no net profit in the first half of 2020, respectively. COVID-19 outbreak has disrupted China’s manufacturing industries sector including RE brought uncertainty to the supply chain causing delays on construction timelines and financings, however, the delays just came in the Q3 or Q4 of 2020 as most manufacturers already shipped most of the products for the early 2020 projects. Unlike fossil energy, RE demand is not affected by temporary disruption such as the COVID-19 outbreak. Overall, the full effect of the COVID-19 has yet to be seen for coal, gas, and RE.

WHAT ARE THE CURRENT AND EXPECTED FUTURE SOLAR PV TRENDS IN THE REGION?

The solar photovoltaics (PV) market is estimated to reach USD 769.3 million, broken into two major segments: utility-scale at USD 675.5 million and rooftop at USD 93.8 million. Both segments are in the early stages of development as government policies and PLN procurement practices are just now taking effect. In addition to larger grid-connected solar PV projects, the government and PLN are promoting smaller systems (250 kW to 5 MW) on small island isolated grids currently served exclusively by diesel generators. Foreign developers are involved as developers of the larger utility-scale projects. Imports of solar PV panels and inverters account for the majority of the equipment opportunities in the market for both utility-scale and rooftop solar PV segments. Indonesia’s renewable energy market is in its infancy but is expected to grow quickly over the next decade. For foreign renewable energy companies to be part of Indonesia’s growth story, they will need to play by local rules. Indonesia is not a transactional market where companies can set up meetings by email, fly-in, and fly-out. The only way to succeed in Indonesia is to build strong personal relationships first, before securing deals; an on-the-ground local presence is essential. Patience & perseverance are required. But for those renewable energy companies, like SUN Energy, willing to make the long-term investment and commitment, the opportunities in Indonesia over the coming decades are substantial.

HOWEVER, THE SUCCESS OF INDONESIA’S ENERGY SECTOR WILL DEPEND ON HOW THE SECTOR REIMAGINES ITSELF—AND HOW PUBLIC AND PRIVATE LEADERS ADDRESS FUNDAMENTAL LONG-TERM CHALLENGES."

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FEB-MAR ISSUE 2022 | PG 14

SOUTH EAST ASIA

THE NATION THAT LEADS IN RENEWABLE ENERGY WILL BE THE NATION THAT LEADS THE WORLD.

- JAMES CAMERON

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FEB-MAR ISSUE 2022 | PG 15

FEATUREDTALKS

Beatrice Foscoli APAC Sales Manager Elum Energy Beatrice Foscoli is an Energy Engineer with international experience specialized in Renewable Energy. After working at Tesla, she joined Elum Energy as the APAC Sales Manager to lead the market entry and the development of the business of control & monitoring solutions in the region.

PLEASE BRIEF OUR READERS ABOUT THE PRODUCTS AND SERVICES OF YOUR ESTEEMED COMPANY.

Elum Energy is an energy and automation company that supplies monitoring and control solutions for solar standard & hybrid energy systems. Our energy management systems (ePowerControl) are turn-key, plug & play, brand-agnostic, and suitable for solar power generation facilities coupled with diesel generators and/or energy storage. Elum also provides a SCADA platform (cloud-based ePowerMonitor or local with ePowerControl SCADA) designed for Asset Managers and O&M teams to report and improve the performance of energy sites through data intelligence. Currently, over 500 sites in more than 40 countries are already equipped with Elum’s solutions.

ELUM HAS DEVELOPED EPOWERMONITOR, A CLOUD PLATFORM DESIGNED TO MONITOR AND IMPROVE THE PERFORMANCE OF ENERGY SITES. OUR SOLUTION, AVAILABLE IN A STANDARD OR ADVANCED VERSION, LEVERAGES DATA INTELLIGENCE OF ENERGY ASSETS TO BRING KNOWLEDGE TO THE SYSTEM AND

WHAT SOLUTIONS ARE PROVIDED BY ELUM ENERGY SPECIFICALLY FOR SOLAR HYBRID MICROGRID APPLICATIONS?

Elum ePowerControl ES is a 100% standardised energy management system dedicated to battery storage systems (BESS) eventually coupled with other energy sources such as PV or diesel generators. It aims to standardise as much as possible the BESS management for small/medium-scale applications, providing a smart, plug & play, and cost-effective control solution. Through an advanced control algorithm, it allows the installer to select the suited battery charging strategy allowing him to maximise PV penetration and battery bank life, and reduce diesel fuel costs. It helped, for instance, an off-grid resort in Malaysia to meet specific load needs related to the peak and off-peak seasons. - Elum ePowerControl MC is a microgrid controller (energy management system) and monitoring system (SCADA) dedicated to islanded and poor-grid hybrid energy systems integrating PV plant, battery storage systems (BESS), and diesel generators. When selecting this premium product, our clients benefit from personalised support with a dedicated project manager to build with them after a need analysis of a custom solution adapted to the complexity of their installation. This product is well suited for large sites that require specific control logic because of their sizing, geography, or end-client constraints. For example, a water bottling facility in Cambodia has selected Elum’s ePowerControl MC to ease the solar battery integration with the existing infrastructure and to maximise the solar penetration on the site.

SOLAR ENERGY PRODUCTION."

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FEB-MAR ISSUE 2022 | PG 16

WHAT ARE SOME OF THE MAJOR ADVANTAGES OF HAVING GOOD QUALITY SOLAR MONITORING SYSTEMS? WHAT ARE SOME OF YOUR PRODUCTS OFFERED IN THIS CATEGORY?

Good quality solar monitoring systems such as datavisualisation platforms have several advantages: - Gather all the data in one place to manage site performance for Financial asset managers: ease multi-energy / multi-sites supervision with intuitive dashboards, automated reporting, KPI calculation (performance ratio, etc.) - Saving operators’ time and reducing costs for O&M team: good systems include real-time alarms to remotely detect failures and avoid onsite visits, thus operators can take immediate corrective actions - Reaching conformity with DSO or public entities: measurement of energy production can be a requirement for most of the DSO, especially for utilityscale projects. Integrated monitoring solutions can also have an economic advantage in regions where it is logistically difficult to control and access the assets, such as in the South East Asian area, due to adverse climate events and site remoteness. Elum has developed ePowerMonitor, a cloud platform designed to monitor and improve the performance of energy sites. Our solution, available in a standard or advanced version, leverages data intelligence of energy assets to bring knowledge to the system and solar energy production.

TELL US ABOUT THE ADAPTABILITY OF YOUR PRODUCTS TO DIFFERENT UTILITY-SCALE SOLUTIONS.

Regarding the utility-scale solutions, we have developed various PowerPlant Controllers to comply with the different needs of the market. It can be coupled with our monitoring solutions (ePowerMonitor or ePowerControl SCADA) to help O&M teams and asset managers to maximise the profitability of the solar asset and easily report on the plant performance.

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PPC Grid-tied for Solar grid-tied site, our PowerPlant controller can be adapted to grid code regulations and assure active/reactive power management as well as integration with local DSO using utility protocols. PPC for Solar Hybrid Sites, in that case, the solar plant is coupled with batteries and/or gensets to power a remote city or island which can be the case in South East Asia. In this particular case, the PowerPlant Controller ensures the good behavior of the plant as per the client’s control logic specification. The PPC maximises solar penetration while reducing fossil fuel consumption.

WHAT ARE YOUR GROWTH PLANS AND STRATEGIES FOR 2022?

2022 is a crucial year for Elum and Asia-Pacific is key in Elum's goal plan, as we have already experienced good traction for our products! In fact, despite the global crisis situation, we have managed to open new markets in several countries such as the Philippines, Malaysia, Indonesia, Cambodia, Vietnam, Thailand in less than a year. In order to be closer to our customers, we have decided to invest in our customer service department by having more agents located in the APAC region to cover larger time zones and we are looking to open a local office in Q4 in another APAC country that will be revealed in a few months. Regarding the products, we launched recently (Q1 2022) the ePowerControl ES (Energy Storage controller) to tackle the small-scale to mid-scale energy storage systems market that is developing fast in the APAC region. Our approach here is to give a full compact and competitive product to help develop the behind-the-meter storage market as most of the EPC are shifting from Solar only solutions to Solar + Storage solutions in their offerings. Given the surge of oil and gas prices, we will accelerate as well the development of a controller that will couple Solar and EV chargers (Q3 2022) in order to propose standard solutions for this booming market and contribute to fossil-free transportation in the APAC region. Finally, ePowerMonitor, Elum’s monitoring platform, will be reshaped with the launch of the mobile app programmed for Q4 2022.

FEB-MAR ISSUE 2022 | PG 17

GUEST COLUMN

Challenges of Indonesia’s Solar PV Rooftop Development AUTHOR: I MADE ADITYA SURYAWIDYA RENEWABLE ENERGY BUSINESS EXPERT / SECRETARY-GENERAL OF INDONESIA’S SOLAR ASSOCIATION

AUTHOR: SYAUGI SALEH SH. ENERGY LAW EXPERT

To meet the NRE Mix Target, the Indonesian Government has issued Presidential Decree No. 22 of 2017 concerning the General National Energy Plan which set an NRE Mix Target of 23 percent or 45.2 GW in 2025. The Government's optimism should be recognized as the government's commitment to participate in implementing the provisions agreed upon in the Paris Agreement (ratified by Law Number 16 of 2016), which holding the increase in the global average temperature to well below 2°C above pre-industrial levels and pursuing efforts to limit the temperature increase to 1.5°C above pre-industrial levels, recognizing that this would significantly reduce the risks and impacts of climate change (Article 2.1 (a) Paris Agreement). One of the government's efforts that should be recognized is the use of Rooftop Solar PV through the issuance of the new Ministry of Energy and Mineral Resources (“MEMR”) Regulation Number 26 of 2021 (“Reg 26”) which revokes the previous MEMR Regulation Number 49 of 2018. According to Reg 26, the state-owned electricity provider (PLN) or any licensed electricity provider (“Electricity Provider”) with the net metering scheme will fully buy 100% of the energy exported from Rooftop Solar PV. Previously, the state-owned electricity provider only buys 65% of the exported energy. Reg 26 also shortens the period for an Electricity Provider to approve or deny a customer's application for the construction of a rooftop solar PV system to 5 business days, down from 15 business days previously. Reg 26 allows Rooftop Solar PV users and Electricity Providers to trade carbon credits generated by Rooftop Solar PV, which specifically will be determined in another MEMR regulation.

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Furthermore, the Indonesian government has launched the Online Single Submission Risk-Based Approach (“OSS RBA”), which streamlines the mechanism and requirements for applying for a Rooftop Solar PV operating license with a capacity of over 500 kW via an online facility. Reg 26 and OSS RBA are expected to be one of the instruments used to meet the target of 3.6 GW of Rooftop Solar PV use in 2025. The instruments have proved expectation in the use of Rooftop Solar PV increasing motivation to both business players and also consumers for both Commercial & Industrial (C&I), and Residential with pipeline growing to 950 MWp reported by businesses across the Rooftop Solar PV sector in Indonesia. The total target of Rooftop Solar PV will have an impact of approximately 8% of the 2025 NRE Mix Target. In the short term, the MEMR estimates that Rooftop Solar PV can be installed up to 450 MW in 2022, then continued in 2023 for 900 MW, 2024 for 1.8 GW, and 2025 for 3.6 GW. However, the use of Rooftop Solar PV in Indonesia is still considered far from the target, as the realization of Rooftop Solar PV use until February 2022 reaches 59.84 MW or approximately 13.3 % of the 450 MW target in 2022. One of the obstacles to achieving the goal of using Rooftop Solar PV is an assumption raised publicly that states the rapid growth of Rooftop Solar PV use, will lower the profits obtained by state-owned electricity providers and disrupt the state-owned power plant network. This assumption provokes the state-owned electricity provider to be cautious to approve the application for Rooftop Solar PV construction and limit the capacity for the installation of Rooftop Solar PV by customers. The Indonesia Rooftop Solar PV Association (AESI) had received at least 17 complaints from industry players seeking to install Rooftop Solar PV between November 2021 to March 2022. This is undoubtedly a hard task for MEMR and state-owned electricity providers to solve this problem collaboratively so that all consumers can immediately install Rooftop Solar PV and enjoy the benefits, while also achieving the NRE mix target in 2025. Rooftop Solar PV development has certainly become a reliable instrument for the government in realizing the NRE mix in 2025. The issuance of effective regulatory instruments, such as Reg 26 and the launch of OSS RBA, clearly shows the government's commitments to realizing investments, one of which is in the clean energy sector. It is undeniable that there will be obstacles in the field as well as at the government level in its implementation. However, the Indonesian government is expected to be able to resolve these obstacles by Q2 2022, as the use of Rooftop Solar PV demand will grow increasingly faster, and hopefully could meet MEMR estimated target, reaching 3.6 GW in 2025.

FEB-MAR ISSUE 2022 | PG 18

UPCOMING EVENTS 25th May

SOLAR

ASSETS

SOUTH EAST ASIA 2022

09-10 June

NEWS | RESEARCH | PUBLICATIONS | EVENTS | WEBINARS For Collaboration Opportunities: Smriti Charan:

Sangeeta Sridhar

smriti@firstviewgroup.com

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