SolarQuarter ASEAN Oct Nov Issue 2020 by SolarQuarter

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RENEWABLES IN MOST OF ASIA PACIFIC TO BE CHEAPER THAN COAL POWER BY 2030

TRENDING Global Electricity Demand To Rebound Modestly In 2021 After Historic Shock From Pandemic

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CONTENT IN CONVERSATION

NEWS

04 TECH INSIGHTS

19 How Trina Is Facilitating And Contributing To Vietnam’s Renewable Growth With Its Innovative Products?

13 CRISTIANO SPILLATI

Global Electricity Demand To Rebound Modestly In 2021 After Historic Shock From Pandemic

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EDITING

DR. NUKI AGYA UTAMA

SAMRESH KUMAR

Executive Director, ASEAN Centre for Energy (ACE)

Executive Chairman and CEO, SkyX Solar, Vietnam Managing Director, VinaCapital, Vietnam

Renewables In Most Of Asia Pacific To Be Cheaper Than Coal Power By 2030

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IEEFA Indonesia: PLN Has ‘Green Ambition’ But Is Short On Renewable Energy Credibility

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SOLAR ENERGY

ASEAN NEWS UNDER THE SPOTLIGHT

IEA EXECUTIVE DIRECTOR HIGHLIGHTS IMPORTANCE OF SUSTAINABLE RECOVERY AT ASEAN MINISTERIAL MEETING IEA Executive Director Dr Fatih Birol spoke at the 38th Association of Southeast Asian Nations (ASEAN) Ministers on Energy Meeting, sharing the latest insights on the impact of the Covid-19 pandemic on global energy markets and underscoring the strong relationship between ASEAN and the IEA. The ASEAN Ministers on Energy Meeting is one of the most important global energy events, bringing together Ministers from ASEAN’s 10 member states for in-depth discussions on progress towards the region’s energy ambitions. The IEA has worked closely with ASEAN on energy policy since 2011 when the two organisations signed a Memorandum of Understanding. Their strengthening relationship on energy policy was reflected by ASEAN’s decision to name the IEA as a strategic partner in 2019. Through 2020, the IEA provided valuable support for the development of a power market spanning ASEAN countries, as well as energy policy design and implementation and energy efficiency capacity building across the region. On top of this, the IEA is supporting Viet Nam in a new initiative to mobilise private investment in infrastructure for electricity transmission. Home to almost 10% the global population, Southeast Asian economies are expected to remain among the fastest growing worldwide. Before the pandemic, the region’s energy demand was increasing by about 7% annually – doubling every 10 years – to power its rapid economic growth.

| ASEAN | OCT-NOV ISSUE 2020

MALAYSIA SCATEC SOLAR’S 47 MW REDSOL PROJECT HAS STARTED COMMERCIAL OPERATION Scatec Solar and partners have grid connected and reached commercial operation for the 47 MW Redsol project in Northwest Malaysia. The solar power plant is expected to deliver 67 GWh of electricity annually and lead to the abatement of about 44,000 tonnes of CO ² emissions every year. The project has been realised in a consortium with Fumase (Malaysia) Sdn Bhd, a US- and Malaysiabased asset management and development company focused on renewable energy in Southeast Asia. The project was awarded in March 2018 under Malaysia’s second large scale solar tender round and holds a 21-year offtake agreement with Tenaga Nasional Berhad – the Malaysian utility company.

PETRONAS SETS NET ZERO CARBON EMISSIONS TARGET BY 2050 PETRONAS has announced its aspiration to achieve Net Zero Carbon Emissions by 2050 as part of its holistic approach to sustainability that balances Environment, Social and Governance (ESG) considerations which are aligned to its statement of purpose, namely to be a ‘progressive energy and solutions partner enriching lives for a sustainable future’. With the target set for 2050, PETRONAS will continue to intensify its efforts toward reducing Scope 1 and Scope 2 GreenHouse Gas (GHG) emissions from its assets by delivering continuous improvements in operational excellence, and by deploying innovative operations and technologies. Together with these efforts, PETRONAS will also pursue new avenues of revenue creation via investments in nature-based solutions as well as establish greater accessibility to cleaner energy solutions.Complementing the new aspiration, the Group also launched its new brand positioning, Passionate about Progress that demonstrates the company’s commitment to continue developing winning, progressive and sustainable solutions. The new brand positioning reflects the Group’s dynamic growth journey and its aspiration to achieve greater good through partnerships with stakeholders, customers and partners.

MALAYSIA’S LARGEST FLOATING SOLAR PLANT COMES ONSTREAM Solar photovoltaic (“PV”) system specialist, Solarvest Holdings Berhad (“Solarvest” or the “Group”) has successfully installed and commissioned a 13.0 mega-watt peak (MWp) large-scale floating solar plant in Dengkil, Selangor. The plant is one of its kind in Malaysia and is now the largest floating solar farm to be commissioned thus far. The solar plant was built on an ex-mining lake for WD Solar Sdn Bhd, part of the WD Group whose principal activities are in the sand mining and transport sector. About 38,790 pieces of solar panels were installed on a panel of floaters that extends approximately 53 hectares of a lake surface, equivalent to 30 football fields. The floating plant will generate about 16,640 MWp of solar power that could potentially power up over 5,800 houses and offset about 11,548 tonnes of carbon footprint annually. | ASEAN | OCT-NOV ISSUE 2020

XSD PARTNERS WITH NEFIN TO POWER UP ITS PLANT WITH SOLAR ENERGY IN MALAYSIA Integrated papermaking specialist, XSD International Paper Sdn Bhd (“XSD”) announced that it has entered into a power purchase agreement (“PPA”) with NEFIN Group (“NEFIN”). For a start, XSD will install a 9.2-megawatt (MWp) solar PV system on its planned facilities in Kulim Industrial Park located at Padang Meha, Kedah via the PPA. The project will see NEFIN building a solar PV system that consists of approximately 21,000 solar PV panels that will collectively generate over 13.5 million kWh clean energy and offsetting approximately 9369 tons of carbon emissions annually. The construction of the project is expected to be completed by Q3 of 2021.

PETRONAS CALLS FOR STRONGER REGIONAL COLLABORATION TO SUPPORT GLOBAL ENERGY TRANSITION As more countries in Southeast Asia make strides towards embracing the global energy transition, PETRONAS has called for a stronger collaboration amongst ASEAN governments, energy players as well as the public and private sectors to collectively leverage on each other’s strengths in achieving a sustainable, low-carbon future. In a special address titled ‘Southeast Asia Energy Outlook in a Global Context’ at the opening of the virtual ASEAN Energy Business Forum (AEBF) 2020 yesterday, PETRONAS President and Group Chief Executive Officer Tengku Muhammad Taufik said: “While the region has made a start towards carbon neutral energy pathways, there remain further opportunities to strengthen regional cooperation and create the right ecosystem to promote a wider usage of energy from clean and sustainable sources, particularly solar and wind. PG 5

VIETNAM ADB, PHU YEN JSC SIGN VIETNAM’S FIRST CERTIFIED GREEN LOAN FOR 257 MW SOLAR POWER PROJECT The Asian Development Bank (ADB) and Phu Yen TTP Joint Stock Company (Phu Yen JSC) signed a $186 million loan to develop and operate a 257 megawatt (MW) solar power plant in Hoa Hoi, Phu Yen Province, Vietnam, through the country’s first certified green loan. Phu Yen JSC is owned by B.Grimm Power Public Company Limited and Truong Thanh Viet Nam Group Joint Stock Company (TTVN). The financing comprises a $27.9 million loan funded by ADB, a $148.8 million syndicated loan (B loan) funded by commercial banks with ADB as lender of record, and a $9.3 million loan from Leading Asia’s Private Infrastructure Fund (LEAP). The syndicated loan is the first green B loan in Asia and the Pacific to be certified by the Climate Bonds Initiative, and one of the largest such loans yet mobilized in Vietnam. The project is the largest single operating solar power plant in Vietnam and one of the largest in Southeast Asia. It will help to reduce 123,000 tons of carbon dioxide annually. The power plant will deliver electricity to Quang Ngai and Nha Trang cities, as well as surrounding areas in a region that is emerging as one of Vietnam’s key tourist centers.

LYS ENERGY VIETNAM INAUGURATES 997.04 KWP ROOFTOP SOLAR PLANT LYS Energy (Vietnam), a fully-owned subsidiary of LYS Energy Group, has inaugurated a 997.04kWp solar PV system atop a renowned local manufacturing company in the Quang Ngai Industrial zone. The Group has been operating in Vietnam since 2016 with the commissioning of its first solar PV system turnkey installation in Ho Chi Minh City on the roof of an F&B industrial client’s facility. LYS Energy Vietnam will further bolster the Group’s local presence and is currently developing 50 MWp of solar rooftop projects across the country. LYS Energy Group has demonstrated its robust capability to successfully develop its expansion in the country through its strong understanding of local regulations and stakeholders of the industry, and also its agility to tailoring and implementing holistic and innovative clean energy solutions for its customers.

CLMV COUNTRIES’S FIRST GREEN LOAN CERTIFIED BY CLIMATE BONDS INITIATIVE B.Grimm Power PCL. and TTVN Group celebrated the first Vietnamese USD 186 million Green Loan with Asian Development Bank. The Green Loan certified by Climate Bonds Initiative, which is also the first Green Loan in the CLMV region, to develop the 257 MW Phu Yen solar power project in Vietnam. One of our objectives is to help provide sustainable energy to support the growth of this region to be a low-carbon economy.

| ASEAN | OCT-NOV ISSUE 2020

B.GRIMM RECEIVES $186 MILLION GREEN LOAN FOR VIETNAM SOLAR DEAL B.Grimm Power Plc, Thailand’s power generation firm has reached a US$186-million syndicated loan deal with Asian Development Bank (ADB). ADB is a key lender to finance its solar farm in Vietnam which also is one of the largest solar power generation facilities in Southeast Asia. ADB will support a 257 MW solar power plant in Phu Yen province on the south-central coast. ADB granted a loan of $27.9 million whereas five commercial banks which included Bangkok Bank, Kasikornbank, Kiatnakin Bank, Industrial and Commercial Bank of China (ICBC) and Standard Chartered Bank provided a total of $148.8 million.Leading Asia’s Private Infrastructure Fund (LEAP) also lended $9.3 million.

EXXONMOBIL, HAI PHONG CITY AND JERA SIGN MOU FOR INTEGRATED LNG TO POWER PROJECT IN VIETNAM ExxonMobil Hai Phong Energy Pte Ltd (EMPHE), Hai Phong People’s Committee and Japan power generation company JERA have signed a Memorandum of Understanding (MOU) to work together on a potential integrated LNG to Power project in Hai Phong. ExxonMobil has submitted a master plan application with a project concept for consideration and potential inclusion in Vietnam’s National Power Development Plan (PDP). Hai Phong City has submitted a letter of recommendation to include power demand with potential locations of power plants and LNG import infrastructure. The project submissions are pending government approvals.LNG-fueled power in Hai Phong will provide a more environmentally friendly alternative to the currently proposed coal projects in the master plan. PG 6

INDONESIA LYS ENERGY GROUP OPENS REPRESENTATIVE OFFICE IN INDONESIA LYS Energy Group, the leading Singapore home-grown Solar Independent Power Producer (IPP) opens its PT LYS Energy Indonesia representative office in the country. Born and bred in Asia, the Group has been operating in Indonesia since 2016 with the commissioning of its first 770kWp solar PV system turnkey installation in Jakarta atop of a multinational F&B industrial client’s facility. LYS Energy Indonesia has successfully delivered and inaugurated the first phase of the to-be largest Indonesia’s rooftop solar PV system and one of the major in the Asia Pacific, with a total PV system size of 7,134MWp atop of an ASEAN giant beverage facility located in the biggest industrial estate in Greater Jakarta. LYS Energy will rely on its Indonesian operations and on the support of a strong network of local and international partners to develop its projects portfolio. This expansion will further strengthen the Group’s local presence and bolster its current 10MWp of countrywide developed solar rooftops, with the expected deployment of 100MWp of distributed solar PV systems by 2022, thus addressing the national Commercial & Industrial (C&I) sector demand in clean energy. LYS Energy Group has deployed more than 50MWp of high-performance solar photovoltaic (PV) systems, with a pipeline of more than 500MWp in Singapore and across the South East Asian region. It is one of the fastest-growing clean energy producers and end-to-end solutions providers, with a five-star portfolio of commercial and industrial projects and customers across diversified and multiple industries.

THAILAND B.GRIMM POWER SIGNS MOU WITH PEA & PEA ENCOM ; AIMS EXPANSION IN POWER SECTOR B.Grimm Power Public Company Limited (“B.Grimm Power”) has recently entered into the Memorandum of Understanding (MOU) with the Provincial Electricity Authority (“PEA”) and PEA ENCOM International Co., Ltd. (“PEA ENCOM”), a company under PEA group. The main aim is to jointly study for the new business opportunities with cooperation in both technical and financial aspects. These include expansion of service area by Small Power Producer (SPP) projects to serve more number of potential industrial users, increasing the electricity supplying efficiency for private sector by the direct supply to end users or the Independent Power Supply (IPS), renewable project expansion, and jointly exploring the Microgrid and Smart Microgrid System which would strengthening B.Grimm Power’s leading position and competitiveness in the power industry. This cooperation is also expected to provide the potential cost saving in future investment in transmission lines and other facilities with total value of no less than THB 1,000 million including the initial cost saving of THB 315 million in B.Grimm Power (AIEMTP) project, together with the enhancement in both customer coverage and service efficiency.

| ASEAN | OCT-NOV ISSUE 2020

BGRIM INVESTS THB 40,000 MILLION FOR UPCOMING 7 INDUSTRIAL POWER PLANTS B.Grimm Power PCL. held the grand celebration of the 7 SPPs with a total investment of THB 40,000 million supported by 5 leading banks; Bangkok Bank, SCB Bank, EXIM Bank, KBank, and Government Savings Bank, together with Siemens Energy Limited (Thailand) and Toshiba Plant Systems and Services Corporation, which are the world’s leading in power plant construction. The upcoming 7 industrial power plants will have an installed capacity of 980 MW. The main objectives are to develop the basic infrastructure of the industrial sector, to provide the high quality and efficiency of electricity and steam for the industrial users, and to increase the competitiveness of the country to be a hub of the region for the sustainable growth of Thailand. PG 7

THAILAND CHPP TO KICK OFF 6MW SMART SOLAR ENERGY PROJECT AT SURANAREE UNIVERSITY GPSC has assigned its subsidiary, CHPP( Combined Heat and Power Producing Co., Ltd) to collaborate with Suranaree University of Technology in the 6-MW Sales of Solar Rooftop-Floating Solar Project, integrating smart energy innovations, including BESS, Block Chain, and AI, to increase efficiency in power generation and distribution in the form of Private Power Purchase Agreement (PPPA). Under this project, smart energy innovations will be integrated with the Provincial Electricity Authority’s power grid for stable and reliable renewable energy solutions. A budget of approximately 150 million baht has been allocated for the project, which will result in more than 510 million baht energy cost saving throughout the 25-year duration of the project. The project will also serve as a smart energy learning center in the northeastern region and will be a model for a smart microgrid city. The project will also serve as a learning center on smart energy innovations in the northeastern region catering to staff, university students, and the general public. A budget of about 150 million baht has been allocated for the project, which is expected to be ready for commercial operation in 2022. The project’s installations are divided into three parts. In addition, the Lithium-ion Battery Energy Storage System (BESS) with a capacity of 100-200 kWh will be installed at Suranives Dormitory and a blockchain-based smart grid will also be set up for the management of solar power generation.

OSOTSPA PARTNERS WITH CLEANTECH SOLAR TO INSTALL 3MW ROOFTOP PV SYSTEMS Cleantech Solar announced the execution of a long-term solar power purchase agreement (PPA) with Osotspa Public Company Limited, Thailand’s leading consumer products manufacturer and distributor, for a combined 3 MW solar PV system on Osotspa’s five factories across Thailand. The rooftop solar PV systems will be financed, designed, installed, maintained and operated by Cleantech Solar for the full term of the agreement. The PV systems are expected to generate about 4,300 MWh of clean electricity in the first year, which is equivalent to offsetting over 2,400 tonnes of CO2 emissions.

BCPG ACHIEVES EARNING OF THB 10235 MILLION; FORGE AHEAD TO LEAD RE IN SOUTHEAST ASIA Bundit Sapianchai, BCPG President, disclosed that the Company had allocated 250 new right offering (RO) shares at a par value of THB 5.00 per each to existing shareholders with the right to exercise at the ratio of 8 existing shares to 1 new share, at the offering price of THB 11.50 per share. Apart from BCPG’s existing shareholders, the Company had allocated new shares to Private Placement investors – Pilgrim Partners Asia (Pte.) Ltd. and Capital Asia Investments Pte. Ltd., – where the two financial institutions have already paid the capital. The THB 3,570 million will be apportioned to a 600-MW wind power project in Laos (2020 – 2023) and payments to loan programs for 20-MW solar power projects in Thailand (2020 – 2022). The Company also plans to invest THB 1,870 million in transmission line system projects in Vietnam in 2020, including payments to loan programs for 114-MW hydropower projects in Laos – Nam San 3A and Nam San 3B. | ASEAN | OCT-NOV ISSUE 2020

THAILAND’S LOW CARBON GOAL TO HINGE ON GASBASED GENERATION AND RENEWABLES EXPANSION Thailand’s power sector is heavily dependent on fossil fuels with 81% share in the generation mix meeting the country’s growing power demand. Thailand’s latest Power Development Plan (PDP) has set the expansion plan of gasbased power generation and renewables with a slow phase-out of coal generation to meet the low carbon transition target. The share of non-hydro renewables in the generation mix is set to grow from 15% in 2019 to 22% in 2030 while the gas-based generation is set to expand from 62% to 76% during the same period, says GlobalData, a leading research and analytics firm. By 2030, the non-hydro renewable capacity is set to double, crossing 18GW in 2030 from the present 9GW. According to GlobalData, the new capacity that is likely to be installed by 2030 will have 4.7GW of solar PV, 5.2 GW of gas projects, biopower 2.6GW and Wind 1.4GW. As part of the low carbon transition plan, Thailand has set a target of achieving 30% of its power generation from renewables by 2036. The renewable growth will be led by biopower followed by solar PV and then wind.

PG 8

THAILAND

THAILAND’S GPSC ESTABLISHES JOINT VENTURE WITH GRP ; AIMS TO COMPETE AGGRESSIVELY IN INTERNATIONAL RE MARKET PTT Group is restructuring shareholding in GRP to support an expansion of renewable energy internationally, focusing on solar and wind power generation. The deal is worth approximately 693 million Baht and is another step in promoting greater cooperation under the stakeholder-centric Powering Thailand’s Transformation initiative and building an operational network among the PTT group of companies. This is in keeping with PTT Group’s strategy in being the leader in the renewable energy or clean energy business, enabling the group’s business and investment expansion, increasing competitive advantage in the renewable energy business and supporting PTT Group’s goal in reaching the renewable power generation capacity of 8,000 MW by 2030.

AISIN GROUP AND CONSTANT ENERGY / SHIZEN ENERGY EXECUTE A CORPORATE PPA FOR A FIRST SOLAR ROOFTOP IN THAILAND Constant Energy, in a joint venture with its Japanese partner Shizen Energy, is pleased to announce that it has executed a long-term Power Purchase Agreement for a first rooftop-based solar PV plant with Aisin Thai Automotive Casting, a joint venture between Aisin Seiki Co., Ltd. (Japan) and Toyota Tsusho (Thailand) Co., Ltd. This solar rooftop project is located in Kabinburi Industrial Zone, in Prachinburi province. Franck Constant, President of Constant Energy commented: “We are very pleased and honoured to establish a longterm partnership with a premier industrial house such as Aisin Thai Automotive Casting which is an affiliate of Aisin Group, a leading company for manufacturing components worldwide for automotive. We look forward to supporting a combined reduction in CO2 emission and electricity cost through this solar power plant.”

| ASEAN | OCT-NOV ISSUE 2020

BCPG PLACES CONFIDENCE IN PP INVESTORS ON THE SUBSCRIPTION FOR NEW ORDINARY SHARES, GAINING PROCEEDS OF THB 4502.25 MILLION Bundit Sapianchai, BCPG President, disclosed that the Company had allocated 391.5 million newly issued ordinary shares at the offering price of THB 11.50 per share to Private Placement investors – 195.75 million shares to Pilgrim Partners Asia (Pte.) Ltd., (5.93% of paid-up capital), and 195.75 million shares to Capital Asia Investments Pte. Ltd. (5.93% of paid-up capital) – where the two financial institutions have already paid the capital with the total value of THB 4,502.25 million. Moreover, both financial institutions are allocated 178.6 million units of warrants to subscribe for BCPG-W3, which will last for 1 year, at the ratio of 2.1924 new shares to 1 unit of warrant (with exercise ratio of 1 unit of warrant to 1 new ordinary share at the exercise price of THB 8.00 each). The total value from the exercise of rights is THB 1,428.80 million. The average offering price of the newly issued ordinary shares in combination with the warrants is THB 10.40 per share, which is less than 90 percent of market price. Therefore, the investors who are allocated the shares shall be required to comply with the Silent Period rules announced by Stock Exchange of Thailand (SET). PG 9

SINGAPORE SEMBCORP AND SP GROUP TO JOINTLY DEVELOP ENVIRONMENTAL SUSTAINABILITY PLATFORM Leading energy companies Sembcorp Industries (Sembcorp) and SP Group (SP) are collaborating to develop an Environmental Sustainability Platform, a one-stop global solution to help corporates and consumers achieve their sustainability goals. The launch of the platform is planned for the first quarter of 2021. The platform aims to include a marketplace that trades renewable energy certificates (RECs) and carbon credits as well as provide carbon consulting services. The Environmental Sustainability Platform will tap on the expertise of both parties to provide consultancy services that encompass physical and digital solutions across energy, water and waste management – enabling corporates to achieve their GHG reduction targets.

CLOSE TO 30 MINISTERS AND INDUSTRY LEADERS DISCUSS SOLUTIONS TO ACCELERATE RENEWABLES INTEGRATION AND POWER SYSTEM RESILIENCE Singapore and the International Energy Agency co-hosted the second Global Ministerial Conference on System Integration of Renewables (SIR). The Conference was held as part of the Singapore International Energy Week (SIEW) 2020. Under the theme “Investment, Integration, and Resilience: A Secure, Clean Energy Future,” the SIR Ministerial Conference brought together close to 30 Energy Ministers, global CEOs and thought leaders to discuss emerging issues in the acceleration of renewables integration and power system resilience with a strong focus on Asia and Southeast Asia. The IEA also launched its new report which provides important recommendations on modernising power grids for greater reliability and flexibility.

SINGAPORE’S CAPITALAND, SP GROUP, SEMBCORP TO STUDY USE OF INTEGRATED ENERGY FOR GREEN DATA CENTERS CapitaLand, SP Group (SP) and Sembcorp Industries (Sembcorp) have signed a Memorandum of Understanding (MOU) to jointly study the use of integrated energy solutions to power data centres. The integrated energy solutions will potentially include a combination of solar photovoltaic, green hydrogen and energy storage amongst others. The study covered under the MOU will initially focus on developing solutions to power CapitaLand’s flagship data centre, 9 Tai Seng Drive with green energy. This collaboration between CapitaLand, SP and Sembcorp is the first under SP’s Energy Partnership Programme. The programme aims to help corporates meet their green ambitions and overcome energy-related business challenges using integrated energy solutions. CapitaLand’s joint study with SP and Sembcorp is another of its efforts to strengthen the use of renewable energy and reduce its carbon footprint. In collaboration with Sembcorp, over 21,000 solar panels were installed atop CapitaLand’s six industrial properties held under Ascendas Real Estate Investment Trust (Ascendas Reit) in Singapore in 2019.

| ASEAN | OCT-NOV ISSUE 2020

NTU SINGAPORE SCIENTISTS DEVELOP ENERGY-SAVING ‘LIQUID WINDOW’ Scientists at the Nanyang Technological University, Singapore (NTU Singapore) have developed a liquid window panel that can simultaneously block the sun to regulate solar transmission, while trapping thermal heat that can be released through the day and night, helping to reduce energy consumption in buildings. The NTU researchers developed their ‘smart window’ by placing hydrogel-based liquid within glass panels and found that it can reduce up to 45 percent heating, ventilation, and air-conditioning of energy consumption in buildings in simulations, compared to traditional glass windows. The ‘smart window’ is the first reported instance in a scientific journal of energy-saving smart windows made using liquid, and supports the NTU Smart Campus vision which aims to develop technologically advanced solutions for a sustainable future. The NTU research team believes that their innovation is best suited for use in office buildings

IEA AND SINGAPORE CO-HOST SECOND GLOBAL MINISTERIAL CONFERENCE ON SYSTEM INTEGRATION OF RENEWABLES The IEA and Singapore co-hosted the Second Global Ministerial Conference on System Integration of Renewables (SIR Ministerial) on 27 October 2020, alongside Singapore International Energy Week (SIEW). Topics included accelerating investment in renewable energy technology and infrastructure, and pathways to develop resilient and flexible power systems.

PG 10

PHILIPPINES IEEFA: PHILIPPINES COAL MORATORIUM HIGHLIGHTS DRAMATIC PIVOT TO RENEWABLE ENERGY INVESTMENT FOR LOWER PRICES AND POWER SYSTEM RESILIENCE The Department of Energy’s call for a moratorium on greenfield coal power plants marks a clear break with past policies and comes as the Philippines prioritizes the need for more resilient, flexible and lower cost alternatives to fossil fuel baseload power, finds a new report from the Institute for Energy Economics and Financial Analysis (IEEFA). The author notes imported coal plants, the mainstay of the Philippines energy system to-date, are unable to operate below a minimum stable value due to their inherent inflexibility. As a result, they are forced to shut off.It' s now up to the Energy Regulatory Commission (ERC) to take additional steps to reinforce the Department of Energy’s new policy direction. The Department of Energy in partnership with the National Renewable Energy Board should immediately update the National Renewable Energy Program (NREP) to reflect the policy shift from centralized base load plants to distributed generation and the preference for indigenous and renewable energy.

AYALA GROUP TO BOOST RENEWABLE PORTFOLIO TO 2,500 MW BY 2021 The Ayala Group plans to scale up its renewable energy portfolio to 2,500 megawatts next year as it positions AC Energy Philippines Inc. to become the largest listed renewables platform in Southeast Asia. ACEN now has 1,000 MW of capacity in the Philippines but only half is renewable energy. AC Energy International owns 900 MW of capacity, which is purely renewables. The plan is to infuse the international platform, AC Energy International into ACEN next year.

CAMBODIA TOTAL SOLAR DG TO BUILD ONE OF SOUTHEAST ASIA’S LARGEST RENEWABLE ENERGY MICROGRIDS IN CAMBODIA Total Solar Distributed Generation (DG), in partnership with Canopy Power, is developing and constructing a solar and battery energy storage hybrid microgrid to deliver clean energy and power to remote island Koh Rong Sanloem in Sihanoukville, Cambodia. Construction has started, and the project is expected to be completed in April 2021.The project will consist of a 1.25MWp ground-mounted Solar PV plant and a 2MWh battery energy storage system integrated with diesel generators and a smart controller, making it one of Southeast Asia’s largest off-grid renewable energy microgrids. Electricity will be distributed across two of the main bays of the island via a new Medium Voltage distribution system. The microgrid is designed to deliver electricity to the island with a renewable energy contribution of more than 50 per cent.

| ASEAN | OCT-NOV ISSUE 2020

TOTAL EREN ENTERS PHILIPPINES RENEWABLE ENERGY MARKET THROUGH TWO SOLAR PROJECTS WITH MABALACAT SOLAR PHILIPPINES AND SINDICATUM RENEWABLE ENERGY Total Eren, a leading renewable Independent Power Producer (“IPP”) based in Paris, is pleased to announce its first steps in the Philippines in partnership with Mabalacat Solar Philippines Inc., a renewable energy corporation based in Manila, and Singapore based Sindicatum Renewable Energy, to build a total of 135 MWp of utility-scale solar power plants in Luzon. The two solar photovoltaic projects, named “Tarlac” (60 MWp) and “Zambales” (75 MWp), are located respectively in the Tarlac and Zambales Provinces, in Luzon, in northern Philippines, and both hold a 20-year private Power Supply Agreement. Tarlac has already entered the construction phase, while Zambales’ construction is expected to start in Q2 2021. The solar farms are expected to reach commercial operation respectively in Q1 and Q4 2021. Once completed, they will produce together over 180 GWh per year, enough to meet the needs of about 258,000 people in the Philippines. PG 11

INCONVERSATION

CRISTIANO SPILLATI Managing Director Limes Renewable Energy

In an exclusive conversation with SolarQuarter ASEAN, Mr.Cristiano Spillati, Managing Director of Limes Renewable Energy, an international renewable energy developer has briefed us on utility scale solar projects in Vietnam. His updates on recent technology and cost trends in the South East Asian solar market will help the readers understand the ASEAN Market in greater detail..

What have been some key learnings and challenges for the year 2020 especially after having faced the Covid crisis?

"Limes is positioning as one of the key local enablers of this transition to a cleaner and renewable energy fueled world."

Resilience is one of the key success factors in greenfield development of power plants. Our resilience this year has been put to even a higher test due to Covid. For example, it took us many months to close land deals that we usually closed in a matter of weeks, public administrations took ages to respond to our enquiries/applications, all the development value chain has been impacted, but mainly with just delays, we have not seen any major disruption in any of the markets where Limes is active (Italy, Vietnam and Chile). On the other hand, the renewable energy sector can be considered one of the “lucky” sectors, where the Covid impact has been felt the least, and actually the sector will come out even stronger after this pandemic will be over. We have already seen during this year increasing major commitments

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from Asian financial institutions to exit from coal financing, countries massively increasing their renewable energy targets (e.g. South Korea) and we expect that this process will further accelerate once we gradually exit from this global emergency situation.

Please brief our readers about the major utility scale projects that you have undertaken in Vietnam Limes is currently working on a pipeline of around 1.3GW of solar and wind projects in Vietnam, all projects positioned to participate in the upcoming new tender program. Limes was originally focused only on solar but this year we took the strategic decision to move into wind as well, since our senior management has strong experience having successfully developed many wind projects in the past. When developing projects Limes always uses a "portfolio approach”, to efficiently

manage development risk. In Vietnam we have spread our pipeline through different Provinces, with different project sizes to use different permitting paths (we have projects ranging from 30MW to 400MW). We are also targeting different types of off takers, not only EVN but also private off takers through the Direct PPA program (we are already involved in one consortium for a potential pilot project of this type). Most of these projects we are developing are with a local partner (we currently have five local partners), but some of them we are taking them forward by ourselves with our local team.

Tell us a bit about the recent technology and cost trends in the South East Asian solar market. The major price volatility we have seen throughout the year has been for solar modules, given the unexpected poly silicon supply crunch in China. We expect

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however that the combined effect of increasing efficiencies in modules and sustained downward trend on all components pricing will allow continued reduction in LCOEs, providing opportunities for governments in South East Asia to procure clean, renewable electricity at very cheap rates. This year has also been the first year where we have seen battery pack prices going below $US100/MWh (this was for e-buses in China), but stationary storage is predicted to see this price range very soon as well, allowing better integration and higher penetration of renewables in South East Asian grids.

What is your outlook on the future development of utility scale solar in the South East Asian region for the next 5 years? After the extraordinary Covid pandemic will be finally over, South East Asia will recover the major economic development and population growth we have seen in recent years, which in turns will be fuelling electricity demand, with growth rates unseen in other parts of the world. Even the IEA finally recognised this year that solar will be the major electricity source going forward, replacing coal as the natural choice for governments around the world, including South East Asia. This year has seen a pivotal shift with many private and public institutions in Asia moving away from coal development and financing, as we as Limes rightly foresaw. This trend will continue and further accelerate this energy transition, and solar will be the cornerstone of every national energy strategy in SouthEast Asia. We expect many other countries to follow the example of Vietnam, accelerating solar deployment, and including stationary storage in their procurement.

We are j ust at the beginning of a very exciting j ourney for South East Asia, and Limes is positioning as one of the key local enablers of this transition to a cleaner and renewable energy fueled world.

Limes is currently working on a pipeline of around 1.3GW of solar and wind projects in Vietnam, all projects positioned to participate in the upcoming new tender program."

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INCONVERSATION

MATTHEW HELING Head of AFRY Management Consulting- Energy, Asia Pacific

SolarQuarter ASEAN interviewed Matthew Heling, Head of Management Consulting- Energy, Asia Pacific at AFRY and got some brilliant insights on the overall scenario for the Renewable Sector in the SouthEast Asia region, factors which make solar sector promising in the region, how the Feed-in-tariff mechanism can be useful in attaining the targets and the importance of digitalization.

According to you, how is the current overall scenario for the Renewable Sector in the SouthEast Asia region, especially after having faced the pandemic? The renewable energy sector remains strong in some Southeast Asia countries, with a lot of potential almost everywhere the region. Although the pandemic caused some problems with indevelopment projects (primarily delays), I understand that most projects are now proceeding, and the long-term impacts on the sector do not seem to be major. As was true before the pandemic, the potential for renewables is generally strong throughout the region. However, since most power sectors in this region are centrally-driven, the level of opportunity for renewables depends a lot on individual countries creating or offering programs to support renewables development. Some are currently doing a good job with that, and others aren’t as much, for various reasons.

"I’m quite confident that curtailment risk will decline a lot in the future as Vietnam improves its transmission system." What are some of the major drivers driving the growth of the solar sector in the region? Since most power sectors in Southeast Asia are centrallydriven, government solar policy and programs are the biggest drivers (or barriers). Solar is already cost-competitive with, or lower cost than, competing technologies. And there is a lot of developer/investor interest in renewables in the region. So when governments establish programs or policies that support or enable solar, a lot of solar will come in, at good prices. Malaysia’s LargeScale Solar program has attracted many bids, at low prices. Vietnam’s feed-in tariff obviously generated a lot of interest and projects. Solar is growing more slowly in other countries in the region because those countries don’t currently have broad or effective policies supporting new solar.

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Which country in the region is currently showing a promising future with respect to Solar? What are some of the contributing factors for it? Considering current policies, programs, and other features, I think that most would agree that Vietnam and Malaysia currently show the most clearly promising future. Vietnam will continue to have large needs for more power generation, and already relatively friendly solar policies will likely continue, as it will want to continue attracting solar investment. There has been significant curtailment of some solar projects due to grid constraints, and while that has understandably spooked some investors, I’m quite confident that curtailment risk will decline a lot in the future as Vietnam improves its transmission system; Vietnam is aware that its ability to continue to PG 14

attract investors and developers depends partly on its ability to reduce curtailment concerns, so it is motivated to resolve the issue. Malaysia’s solar growth has not been explosive as Vietnam’s, but that’s partly why I expect it to be a strong solar market going forward. Its solar growth has been consistent and moderately paced. Its auctions have attracted a lot of interest and have generally been regarded as well-run, and future auctions are expected to attract similar high levels of interest. And Malaysia is building solar at a pace that its grid can handle. All of those things suggest that its strong but measured growth can and will continue in the future.

Please tell us how digitization will benefit the solar sector in ASEAN region? Digitalization can impact and improve most elements of the solar value chain. But I think it can have the most impact in the categories of system maintenance and, more interestingly, interactions with the grid and off takers. In the category of system maintenance, it’s simply that the more data you have, the better you can predict and respond to maintenance issues, both of which can improve project economics. Digitalization of maintenance is already quite advanced, I think. In the category of “interactions'', digitalization can open up new business opportunities and revenue streams – relating to things like blockchain, certification and trading of renewable energy certificates (RECs), perhaps even offering new energy “products” to utilities (such as ancillary services) – all enabled by improved data availability and flow among parties. I expect these things to progress more slowly in Southeast Asia than elsewhere in the world, since energy markets aren’t as open in Southeast Asia as in other parts of the world – but it’s an area we are watching closely and I’m interested to see how it evolves.

For ASEAN to achieve its renewable target of 23% by 2025, if and how can the Feedin-tariff mechanism be useful? The feed-in tariff (FiT) is a proven method for attracting solar projects. The challenge is to set the FiT at the “correct” level. If it’s too high, many projects will come in, but the government will then pay more than it needs to, wasting government resources. If the FiT is too low, then developers/investors won’t be interested – or, they will cut corners (use low-quality equipment, etc.) in order to reduce their costs such that they can still earn a sufficient profit from the low FiT level – but then these projects have a higher risk of poor performance, which also means wasted government resources. Most believe that FiTs are a good approach for starting a solar sector, with auctions a logical next step. However, when developing auctions, details are key. It’s particularly important to have strong and clear requirements for project quality, since the natural tendency will be for bidders to design the lowest-cost (and possibly lowest-quality) project that will meet the auction requirements.

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INCONVERSATION

DR. NUKI AGYA UTAMA Executive Director, ASEAN Centre for Energy (ACE) In an exclusive interview with SolarQuarter ASEAN, Dr. Nuki Agya Utama, Executive Director at ASEAN Centre for Energy(ACE) threw light on ASEAN's solar ambitions and plans, ACE's initiatives for further development and integration of Solar for the region and the contribution of floating solar in attainment of the regions RE goals.

For ASEAN to achieve its renewable target of 23% by 2025, how important is the contribution and role of the Solar sector in particular? Solar PV will play an important role in the RE development. The installed capacity of Solar PV is growing due to the increased policy support mechanism in each ASEAN Member States (AMS). In addition, under the ASEAN Plan of Action for Energy Cooperation (APAEC) Phase II that was recently endorsed at the 38th ASEAN Minister of Energy Meeting (AMEM), ASEAN has also set an additional renewable energy target of 35% RE share in power capacity by 2025. | ASEAN | OCT-NOV ISSUE 2020

"ACE has been actively promoting the importance of renewable energy in accelerating the ASEAN low-carbon transition." What are some of the innovative technologies that the ASEAN region is adopting to encourage renewables? AMS has been actively integrating energy storage systems into the grid to supply affordable, reliable, and a higher share of renewable electricity. The type of energy storage and the level of advancement are various start from pump hydro to battery and also different between states where Malaysia, Singapore and Thailand are the leading states in the deployment and research and development (R&D) of the energy storage system. Under the regional framework of ASEAN Plan of Action for Energy Cooperation (APAEC) Phase II: 2021 â&#x20AC;&#x201C; 2025, energy storage is highlighted as one of the new technologies to be explored in supporting the transition of ASEAN Power Grid (APG) towards the low carbon system.

Please tell us what steps have been taken by ASEAN Centre for Energy (ACE) recently to encourage the use of renewables in the region overall? ACE has been engaging with our dialogue partners and international organisations in carrying out studies, building capacity and sharing information to ASEAN Energy Cooperation stakeholders. ACE has established strong partnerships with the Chinese, Japan, Korea, German, Norwegian and the United States governments, as well as IRENA in promoting the role of renewable energy in the regional low-carbon transition. In particular, through the ASEAN German Energy Programme (AGEP), ASEAN Climate Change and Energy Project (ACCEPT), USAID and collaboration with the China Renewable Energy Engineering Institute (CREEI), ACE has jointly published policy briefs,

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guidelines, roadmap and reports that related to technical and policy studies. Besides, ACE is also in collaboration with IRENA to publish a long-term RE roadmap. In addition, ACE has been actively promoting the importance of renewable energy in accelerating the ASEAN low-carbon transition through a series of webinars and focus group discussions, which can be checked in ACE’s website and social media. These activities also inline with the new sub-theme of APAEC Phase II: 2021-2025, “Accelerating Energy Transition and Strengthening Energy Resilience through Greater Innovation and Cooperation”, renewable energy would be the focus of regional energy cooperation.

Do you think floating solar can contribute towards attainment of the region's renewable target? If you think that floating solar could contribute, what steps need to be taken? ASEAN region is endowed with vast resources of solar and hydropower. Yet the development of solar farms is often challenged with land scarcity due to dense population and limited flat land. With such combinations of two in the existing hydroelectric plant would significantly increase the economy of the plant itself. The colocating of two could double the power output while not requiring new transmission infrastructure. From the technical side, the combination of solar and hydro could complement the intermittency of both sources thus could serve as firm capacity which would be the perfect solution for an isolated system with poor grid infrastructure. From a project development perspective, floating solar would be quicker to install compared to land-based solar because it is modular and needs less intensive site preparation such as anchoring, and would be much cheaper because it does not involve the painful land acquisition process. To conclude, floating solar is a promising alternative and an efficient way to boost renewable energy capacity in ASEAN. | ASEAN | OCT-NOV ISSUE 2020

Since 2019, ACE has observed an upward trend of utility-scale floating solar development in ASEAN. The largest was announced by the Electricity Generating Authority of Thailand (EGAT) to install 2.7 GW floating solar via 16 hydroelectric dams by 2037. Followed by Vietnam, with the auction of 400 MW floating solar and 47 MW floating solar in Binh Thuan province. In addition, the economic benefit of floating solar has made possible the relatively low solar tariff in Indonesia of USD 0.058/ kWh for 145 MW project and in Malaysia of USD 0.051/ kWh for 13 MW project. To further amplify the floating solar investment, it is time for ASEAN to gradually move away from subsidising fossil-fuel based power plants, to enable competitive ground for renewable energy.

What is your forecast on how the solar sector is going to grow in the next 5 years? Referring to the ASEAN Energy Outlook 6th (AEO6), solar capacity will rapidly grow at 10.4% per year under the ASEAN National Target Scenario (ATS). Moreover, to achieve the regional renewable target, ASEAN has to add 50+GW of solar capacity by 2025. The aggressive solar development could be achieved by creating regional cooperation through the ASEAN Power Grid. In addition, there are existing solar cell manufacturers in this region, such as those in Malaysia, Thailand, and Vietnam. I believe the Regional Comprehensive Economic Partnership (RCEP) Agreement will also help to boost the solar industry in this region. The agreement that aims to lower trade barriers, streamline processes and improve market access will enhance the business opportunities not only within the region but also between ASEAN and the signatory countries. The solar industry will hence benefit from the RCEP.

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INCONVERSATION

SAMRESH KUMAR Executive Chairman and CEO, SkyX Solar, Vietnam Managing Director, VinaCapital, Vietnam SolarQuarter ASEAN interviewed Mr. Samresh Kumar, Executive Chairman and CEO of SkyX Solar, a Rooftop solar company and Managing Director, VinaCapital, a USD 2 billion diversified investments management group based in Vietnam and got insights on what key learnings were gained during this Covid year. We also understood the next year plans of the company and the future growth outlook for Vietnam.

As a developer how has the year 2020 been for you overall? Any key learnings? Unlike companies in many other sectors, Year 2020 has been a great year for us as a rooftop solar power developer. Despite the multiple challenges faced like the COVID-19 situation with all its related lockdowns and the deadly typhoons in central Vietnam, we still managed to successfully develop, build and operate multiple rooftop solar projects as developer and investor in south and central Vietnam. In fact, the COVID-19 situation had a positive side-effect for us- some clients which were previously considering investing in rooftop solar themselves, decided to partner with us because we offered the zero capex, zero opex model which enabled them to focus their cash and time for their core business but still receive more savings than what they could have achieved by implementing rooftop solar themselves. Our clients include leading foreign companies from

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"Unlike companies in many other sectors, Year 2020 has been a great year for us as a rooftop solar power developer." Korea, Taiwan, Thailand, Europe, and Vietnam. We are well on our path to develop more than 200 MW of rooftop solar within the next 3 years. I have been investing and building businesses in Vietnam for almost a decade now. One of the key learnings which got reenforced, was that one simply cannot afford to â&#x20AC;&#x2DC;take the eye off the ballâ&#x20AC;&#x2122; anytime in Vietnam while developing projects or a business. The speed and quality of execution is paramount. And having the right team which brings complementary skill sets, is hungry, has the right attitude and has integrity is super important.

What major challenges do you face today in the development of projects in the South East Asian market?

We are primarily focussed on the Vietnam market. One of the challenges faced is the lack of regulatory clarity sometimes. It helps to have a deep understanding of the country, have a long business history in Vietnam along with the relationships and to have a long-term view here, like SkyX Solar has, being part of VinaCapital group, which has been investing and building businesses in Vietnam for almost 20 years now. Another challenge right now for rooftop solar is the limit of 1.25MWp per connection point. Vietnam is the new factory of the world and there are many industrial roofs where we can install a big capacity but it gets limited because of the above threshold. I believe the Government will increase this threshold in future which will help accelerate the development.

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Please tell us about the current installed capacity of the company and what are the investment plans for next year 2021? Our current installed capacity of rooftop solar is many tens of MW (sorry this is private confidential info and also as this is an increasing number as well). We are well on our path to develop more than 200 MW of rooftop solar within the next 3 years. In 2021, we will continue to work with credible multinational companies and local sector champions to develop rooftop solar solutions and direct PPA solutions in a win-win long term partnership.

How do you see the solar market progressing in Vietnam in the next 5 years? Vietnam has immense solar irradiation across most parts of the country. 20192020 was the year to build out solar farmsaround 5 GW got built. 2020-2025 will be for rooftop solar, ESS and direct PPA. In 2020 itself, I believe Vietnam would have built around 2 GW of rooftop solar power, across residential, industrial, and commercial, which is commendable. This will continue for the next few years. Then energy storage solutions (ESS) would start becoming mainstream in a couple of years plus the direct PPA model for ground mounted solar will take off once detailed regulations are drafted. In a nutshell, the opportunity in the solar sector in Vietnam for the next 5 years could not be brighter!

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Our current installed capacity of rooftop solar is many tens of MW (sorry this is private confidential info and also as this is an increasing number as well). We are well on our path to develop more than 200 MW of rooftop solar within the next 3 years. In 2021, we will continue to work with credible multinational companies and local sector champions to develop rooftop solar solutions and direct PPA solutions in a win-win long term partnership."

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TECH INSIGHTS

50MW CAM HOA SOLAR FARM, HA TINH PROVINCE)

HOW TRINA IS FACILITATING AND CONTRIBUTING TO VIETNAMâ&#x20AC;&#x2122;S RENEWABLE GROWTH WITH ITS INNOVATIVE PRODUCTS? Vietnam is one of the fastest-growing solar energy markets in the world. In just a couple of years, the country has achieved a tremendous rise in solar energy setting new examples for the region. According to Electricity Vietnam (EVN), Vietnamâ&#x20AC;&#x2122;s solar generation in the first quarter of 2020 surged by 28 times as compared to the same period last year. At least 91 solar farms began operation in 2019 with a total capacity of 4,550 MW. The energy demand in Vietnam is expected to increase by 10 percent by the end of 2020 and by 8 percent annually by 2030. And solar energy is a key to achieve its ambitious targets of producing 23 percent of its energy mix from renewables. The introduction of policies like the flexible FITs (feed-in-tariffs) system with a focus on solar projects with higher solar cell and module efficiency has boosted the confidence of investors making it an ideal renewable investment destination. Moreover, rooftop solar installation prices have dropped by half in the last three years which has sparked increasing demand. According to a research study, 85% of the rooftop solar systems installed in Vietnam were residential systems alone by the end of August.

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"With the belief that the greater power output and efficiency of new solar modules will help Vietnam achieve a major shift to renewable energy it has been making new records through its unmatched level of innovation and technological capabilities." PG 20

TRINA'S CONTRIBUTION TO SUPPORT VIETNAM'S AMBITION

As of October 2020, Trina Solar has delivered more than 56GW of solar modules worldwide to empower the world with clean solar energy. The company engages in PV products R&D, manufacture, and sales; PV projects development, EPC, O&M; smart micro-grid and multi-energy complementary systems development and sales, as well as energy cloud-platform operation. Trina Solar has expanded in more than 100 countries with 8 production bases in China, Thailand, and Vietnam. The company maintains some of the strongest financials in the industry and is ranked as one of the most bankable solar manufacturers. Trina Solar made its entry into Vietnam in the year 2017 maintaining a very strong impression and presence in several highprofile utility-scale projects. Since then, Trina Solar has become one of the top three solar players in the Vietnamese market. The company has been supporting Vietnam's ambition to embrace solar energy by lessening its dependence on imported fossil fuels. For instance, the solar farm in the 111 MW Da Bac project located more than 100 km away from the coastal area. "The installation was quite challenging as the ground was shallow. During the heavy storm in 2019 when nearby projects were badly damaged, our project was comparatively less affected due to the adoption of the high-quality Trina modules combined with good design and installation" Trina Solar’s Head of the Asia-Pacific region Todd Li recalls. The 100 MW Gaia project based in Long An province and the 50 MW Cam Hoa solar plant as the first solar farm in northcentral Vietnam's Ha Tinh province are other good examples of Trina Solar’s large projects.

Trina Solar's 42MW Phong Phu project has recently been announced as "Vietnam’s Outstanding Renewable Energy Project 2020". The project has been evaluated by the Scientific Advisory Council, Education & Environment, and leading experts in renewable energy economics and the environment.

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TRINA SOLAR'S 42MWP PHONG PHU PROJECT WON THE AWARD OF "VIETNAM OUTSTANDING RENEWABLE ENERGY PROJECT 2020")

The accomplishment was not only due to the stable and efficient operation, but also making a good contribution to preserving and protecting the environment, creating jobs, and contributing positively to the local budget. Trina Solar's all other projects are following the same footstep. Trina Solar has been following the commercial and industrial market trend. Despite its short span in Vietnam, the company currently has 10 authorized distributors and over 20 system integrators, partners, and developers in Vietnam. With the belief that the greater power output and efficiency of new solar modules will help Vietnam achieve a major shift to renewable energy, it has been making new records through its unmatched level of innovation and technological capabilities. MODULES: AN EXAMPLE OF HIGHER EFFICIENCY AND HIGHER OUTPUT

Trina Solar led the 6.0 era with the launch of 600W+ Vertex series of solar modules, helping to maximize value for customers by increasing power generation capabilities and reducing the BOS (Balance of System) cost and Levelized Cost of Electricity (LCOE). The total sales of Trina Solar's Vertex series of modules are more than 2GW worldwide after it debuted in February. Because of the modules’ proven field performance and the high bankability ratings that Trina Solar products have, the Vertex modules are well-received by Vietnamese customers. The next-generation Vertex modules incorporate many innovations while their main benefits include higher power output, lower balance of system cost, great reliability and suitability for large-scale ground-mounted PV power plants, and large industrial and commercial rooftop projects. These features have been proven as highly beneficial for the Vietnamese market.

VERTEX 600W BIFACIAL DOUBLE-GLASS MODULE, DEG20C.20

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In November, the company launched the Vertex S series modules with the output power of more than 405Wp, a power increase of up to 60Wp or 17% compared with previous product generations. It is another milestone in the long developmental history of the PV industry. This series of modules have ultra-high power and a small form factor, boost the rooftop photovoltaic system power yield up to 23%, tailored to the needs of rooftops and distributed energy systems. Trina Solar has enriched distributed energy market products with 210mm technology, which have been approved by large ground-based power plant customers.

With the PV industry entering the era of ultra-high power, the company launched TrinaPro, an integrated solar system comprising Trina Solar’s smart single axis trackers truly optimized for high power modules in terms of performance, reliability and lower BOS and construction cost.

A CHINESE “TOP RUNNER” PV POWER PROJECT IN TONGCHUAN, SHAANXI, UTILIZING 30 MW TRINAPRO SMART SOLUTION)

TRINA SOLAR’S 405W VERTEX S MODULES)

The financial gains are enormous and easily make up for the additional upfront system cost. These Vertex S series of modules with higher efficiency, higher power, and higher reliability will bring a higher return of investment to the Vietnamese customers. Though different countries have different rooftop sizes, the modules have been meeting the demands of the local market. Good optimization is the key value, and since the weight of the module is only 21 kg and two workers can easily carry it for installation, it’s a plus point in terms of practicality. TRACKERS AND TRINAPRO: LONG-RUN COMMITMENT TO BOOST CLEAN ENERGY

Besides modules alone, Trina Solar also offers integrated module and smart tracker solutions. The benefit of using trackers is that they substantially increase the amount of electricity the solar farm produces by having the panels track the movement of the sun throughout the day, conservatively by 10% or sometimes in excess of 20% where bifacial modules are utilized in conjunction with reflective ground conditions. Trina Solar is one of the leading international companies that has recognized Vietnam’s hunger for renewable power by providing high-quality PV products and smart energy solutions that, for competitive capex, unlock the highest and most bankable long term energy outcome and deliver lowest Levelized Cost of Energy (LCOE).

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Due to these features, TrinaPro is ideal for utility-scale projects in Vietnam or commercial and industrial projects of 10MW or more. It delivers a lower balance of system (BOS) and construction costs, typically in excess of USD 1cent per Watt peak and considerable increase in long term energy generation, and through single point procurement and accountability ensures streamlined engineering and procurement. This enables project investors to reach COD and start to realize the superior financial returns possible within a more expedient timeframe and with lower risk, especially in today’s highly disrupted supply chain landscape. Trina Solar utilizes an innovative turn-key approach to utility-scale and commercial solar PV installations by bundling together three core components: modules, trackers, and high-quality central or string inverters. Since this year is coming to an end, it has set higher targets for Vietnam for next year with competitive pricing and the highest standard. Vietnam is leading Southeast Asia’s renewable energy market. With technological progress and growing environmental concerns leading to renewable energies being more attractive, Trina Solar continues to contribute to Vietnam's clean energy development, and in creating jobs and income for the local population.

"The 100 MW Gaia project based in Long An province and the 50 MW Cam Hoa solar plant as the first solar farm in north-central Vietnam's Ha Tinh province are other good examples of Trina Solar’s large projects."

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INSIGHTS

GLOBAL ELECTRICITY DEMAND TO REBOUND MODESTLY IN 2021 AFTER HISTORIC SHOCK FROM PANDEMIC

China, India and other emerging economies set to lead growth next year, although the recovery in demand will be less strong than after the global financial crisis, new IEA report says After experiencing its biggest decline in decades, global electricity demand is expected to rebound modestly next year, led by growth in China, India and other emerging economies, according to a new report by the International Energy Agency. The historic shock of the Covid-19 crisis is set to result in a 2% decline in global electricity demand in 2020, according to the IEA’s first ever Electricity Market Report, which was published today. With the recovery of the world economy in 2021, electricity demand is forecast to grow by around 3%. That would be significantly weaker than the rebound in demand of over 7% in 2010, the year following the global financial crisis. China will be the only major economy to see higher electricity demand in 2020. However, its expected growth of around 2% is well below its recent average of 6.5%. Other big electricity consumers including the United States, India, Europe, Japan, Korea and Southeast Asia are all set to experience declines for the year as a whole. Electricity generation from renewable energy – such as hydropower, wind and solar – is forecast to grow by almost 7% in 2020, squeezing conventional power sources. Coal-fired generation is set to fall by around 5%, the largest decrease on record; nuclear power generation by around 4%; and gas-fired electricity generation by 2%. Overall, CO2 emissions from electricity generation are on course to fall by 5% in 2020. | ASEAN | OCT-NOV ISSUE 2020

“Electricity has a central role in today’s energy world – a role that will only increase in importance as clean energy transitions accelerate,” said Dr Fatih Birol, the IEA’s Executive Director. “Based on the very latest data available, the IEA’s new Electricity Market Report provides fresh insights on this critical sector. Starting next year, we will publish a new edition of the report on a half-yearly basis.” The growth of renewable power generation is forecast to continue in 2021 with an increase of more than 6%, expanding the share of renewables in the power mix to 29% from 28% in 2020. Nuclear power is set for growth of 2.5% next year on rebounds in France and Japan and new plants coming online in China and the United Arab Emirates. In advanced economies, the growth of renewables and nuclear power will continue to shrink the space remaining for fossil fuel generation. Natural gas is likely to be impacted more than coal as a result of an expected rise in natural gas prices. In emerging and developing economies, demand growth is forecast to outpace increases in renewables and nuclear power, leaving some room for coal and gas generation to expand. The expected net result globally is that coal-fired generation increases by around 3% in 2021, while gasfired plants increase output by roughly 1%. This would lead to a rise in CO2 emissions from the power sector of around 2% in 2021.

SOURCE : IEA

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INSIGHTS

RENEWABLES IN MOST OF ASIA PACIFIC TO BE CHEAPER THAN COAL POWER BY 2030 Wood Mackenzie’s latest report shows most markets in Asia Pacific can expect to see cheaper levelised cost of electricity (LCOE) for renewables compared to coal by 2030. Across the region, new investments in renewables power are expected to be 23% lower cost than coal power on average by the end of the decade. Currently, renewables power costs about 16% more on average compared to coal power but has been at a discount to gas-fired power since 2019. Wood Mackenzie senior analyst Rishab Shrestha said: “Today, India and Australia are the only markets in Asia Pacific with LCOE for renewables cheaper than newbuild coal. However, by the end of the decade, we can expect almost all markets in the region to have renewable power at a discount compared to the lowest cost fossil fuel. The stage is set for rapid growth of subsidy-free renewables in Asia Pacific.” By 2030, renewables power in India and Australia are expected to be 56% and 47% cheaper than new-build coal, respectively. India is a cost leader for renewables due to low construction and labour costs and good renewable resources. The massive renewables market potential has attracted many investors, leading to intense competition and cost declines. While Australia and China have similar solar costs, the former market has better solar insolation whereas CAPEX is cheaper in the latter market. However, due to lower coal LCOE in China, the renewables premium remains relatively high. Three other markets – South Korea, Thailand and Vietnam – will join China with lower renewables power cost compared to coal in 2021.Wood Mackenzie expects a modest carbon price to impact the LCOE of coal and gas in Asia Pacific. In the region, carbon prices are pushing up LCOE by more than 4% for coal and gas today and could double to 8% in 2030.

An inclusion of a US$30 per tonne (t) carbon price would expedite new-build solar (utility PV) and wind (onshore wind) costs to be lower than coal by 2023 and 2030 respectively, five years earlier than the original timeline. Northeast Asia’s renewables premium averages at around 25% currently. Japan, the most expensive renewables cost country in 2020, can also expect a 1% renewables discount against fossil fuels by 2030. The market’s high premium is largely due to higher labour costs, environmental permit costs, land constraints and lower availability of renewable resources. South Korea and Taiwan will see cost of renewables power to be around 30% cheaper than fossil fuel power costs by the end of the decade. Southeast Asia has a high renewables LCOE premium of 30% due to its lower coal LCOE in 2020. Vietnam is expected to lead the region as utility PV power becomes cheaper than coal power as early as next year. Shrestha said: “Despite low renewables costs, government policy is still critical in the future to attract investors, manage grid reliability and transmission upgrades, and encourage battery storage to manage intermittency of renewables. Our LCOE estimates for solar plus storage and wind plus storage projects show that they can start to compete with gas in 2026 and 2032, respectively. However, it will take much longer for these technologies to compete with coal.” SOURCE : WOOD MACKENZIE

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INSIGHTS

IEEFA INDONESIA: PLN HAS ‘GREEN AMBITION’ BUT IS SHORT ON RENEWABLE ENERGY CREDIBILITY

Ng notes PLN may be better known to investors as a major carbon emitter that continues to add coal-fired power capacity.“ The company still has at least 20 gigawatts of coal projects in the pipeline,” says Ng.“PLN management may come up against some difficult questions from ESG investors reluctant to fund issuers that continue to be fossil fuel focused, or indeed lacking in transparency.” Ng says PLN has no meaningful experience of disclosing or reporting to investors on ESG-linked performance metrics.“The company is going to need to provide additional specifics to prospective ESG investors on how its future sustainable financing plans will be different from the past.”Ng suggests PLN management has a number of areas to address in preparation for next month’s issuance to boost PLN’s credibility, including: Building specific credible plans with policy commitments Being prepared for PLN’s performance to be closely examined, including its poor renewable energy performance Building in mechanisms highlighting enhanced transparency, internal capacity, safeguards and use of proceeds Undertaking serious post-issuance reporting.

Indonesian state-owned electricity company PT Perusahaan Listrik Negara (PLN) is preparing to issue a “green and/or sustainable financing” instrument as early as January 2021 following the publication of its Statement of Intent on Sustainable Financing Framework last month. Author of the briefing note Christina Ng, says although this is the right direction, PLN now needs to work hard to build investor credibility given its track record. “PLN’s recent commitment to provide clean and sustainable energy for Indonesia in line with government expectations could be attractive to ESG (environmental, social, and corporate governance) fixed income investors,” says Ng. “The company’s renewable energy performance however will be of concern.“PLN’s renewable energy plans lag its regional and global peers. The company has not implemented its project investments as planned and has a limited track record of successful implementation.”

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PLN can show investors that the company, going forward, is committing to a sustainable, conventional mix of renewable energy projects from solar and wind with relatively low implementation risk and that will commence as soon as PLN secures financing. Further, if follow-through on a project fails, penalty costs or other redress as part of the terms of the bond could be written in to prove PLN’s commitment to delivering on stated sustainability goals. “Providing a roadmap for phasing out investment unfriendly fossil fuel energy sources, and abandoning coal projects in the pipeline, would demonstrate PLN’s seriousness in transforming into a sustainable utility business in line with government and investor expectations,” says Ng. “A credible implementation plan will be challenging, but so is meeting expectations in the sustainable finance market. The investor rewards make it worth it. “As Indonesia’s Finance Minister Sri Mulyani Indrawati said recently, “Developing renewables is always very challenging, but it is not impossible”. SOURCE : IEEFA

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INSIGHTS

PHILIPPINES COAL MORATORIUM HIGHLIGHTS DRAMATIC PIVOT TO RENEWABLE ENERGY INVESTMENT FOR LOWER PRICES AND POWER SYSTEM RESILIENCE

The Department of Energy’s call for a moratorium on greenfield coal power plants marks a clear break with past policies and comes as the Philippines prioritizes the need for more resilient, flexible and lower cost alternatives to fossil fuel baseload power, finds a new report from the Institute for Energy Economics and Financial Analysis (IEEFA). Author of the report, energy finance analyst Sara Jane Ahmed, says the decision makes clear the Department’s aim to modernize the power system with new technology options and with it, USD 30 billion of investment in renewable energy. “The Philippines power market’s problems have been exacerbated by the pandemic, and now Super Typhoon Rolly urgently raises the need to shift to distributed modular renewable energy and resilient grids,” says Ahmed. “THE INFLEXIBILITY OF KEY POWER GRIDS HAS LED TO REGULAR OUTAGES AND INCREASED DISRUPTION due to more volatile demand patterns. “Leadership from the Energy Secretary and Finance Secretary makes clear that the Philippines aims to build a more cost-competitive and resilient energy future by shifting to clean energy resources and green technologies.”

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Ahmed notes imported coal plants, the mainstay of the Philippines energy system to-date, are unable to operate below a minimum stable value due to their inherent inflexibility. As a result, they are forced to shut off. In May 2020 alone, coal-fired power units were responsible for 60% of outages. The moratorium on greenfield coal power plants means that new planned coal projects will no longer receive permits from the Department of Energy. “This is a welcome development,” says co-author Melissa Brown, director of energy finance studies, Asia. “POWER SECTOR STAKEHOLDERS CAN NOW PRIORITIZE CHEAPER RENEWABLE ENERGY AND STORAGE PROJECTS that deliver lower costs and price stability while also delivering domestic energy security.“ The added bonus is electricity prices for consumers are likely to become more competitive.” Ahmed notes that it’s now up to the Energy Regulatory Commission (ERC) to take additional steps to reinforce the Department of Energy’s new policy direction. Removing the passthrough for fuel costs should be a high priority along with implementation of curtailment clauses. The current pass-through structure unfairly punishes consumers that have no ability to hedge volatile fuel costs. According to Ahmed, curtailment clauses would make it possible to stop fossil fuel lock-in when outdated fixed

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contracts can be used to block low cost renewable energy from entering the system.“ While the Philippines power industry leaders should be well positioned to shed these high cost projects, it is ultimately the ERC that determines affordability by learning from the coal experience,” says Ahmed. “The added bonus is electricity prices for consumers are likely to become more competitive.” Ahmed notes that it’s now up to the Energy Regulatory Commission (ERC) to take additional steps to reinforce the Department of Energy’s new policy direction. Removing the pass-through for fuel costs should be a high priority along with implementation of curtailment clauses. The current pass-through structure unfairly punishes consumers that have no ability to hedge volatile fuel costs. According to Ahmed, curtailment clauses would make it possible to stop fossil fuel lock-in when outdated fixed contracts can be used to block low cost renewable energy from entering the system. “While the Philippines power industry leaders should be well positioned to shed these high cost projects, it is ultimately the ERC that determines affordability by learning from the coal experience,” says Ahmed. “SAN MIGUEL AND MERALCO BOTH HAVE OUTDATED TECHNOLOGY IN THEIR NEW PROJECT PIPELINE, but they have also positioned themselves to be part of the energy modernization.

"As the energy system moves away from its overreliance on baseload coal, the grid will need to be modernized and upgraded to support more variability and to integrate new smart grid technologies. With the right incentives, we expect industry leaders will help drive this change. “The deflationary price trajectory of domestic renewable electricity generation and storage triumphs over the cost of generating power by large fossil fuelled power plants.” Ahmed says the Department of Energy in partnership with the National Renewable Energy Board should immediately update the National Renewable Energy Program (NREP) to reflect the policy shift from centralized baseload plants to distributed generation and the preference for indigenous and renewable energy. The NREP should also be incorporated into the Philippine Energy Plan as well as the Power Development Plan. She also says foreign investors looking to invest in modern renewable energy technologies can expect more supportive policies that will prepare the market for a more diverse generation mix and resilient power system. “Investors looking to sell expensive, outdated coal technology are no longer welcome.” SOURCE : IEEFA

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