THE ENERGY INDUSTRY TIMES - DECEMBER 2017 Asia News 5 South Korea backs super grid plan Plans for a northeast Asian super grid are taking shape as the region looks to improve energy security and ease political tension. Syed Ali A plan for a northeast Asian energy super grid received a boost in November after winning the support of the head of South Korea’s state-run energy group, Korea Power Electric Corp. (Kepco). The company’s Chief Executive Cho Hwan-eik claimed the project goes “beyond economics”, saying it has the potential to ease the region’s political tensions. “We have carried out a preliminary feasibility study on the project and concluded that it is feasible economically and technically,” he said. The plan, floated by Japanese billionaire Masayoshi Son, aims to connect the electricity networks of South Korea, China, Japan, Mongolia and Russia. Son, Chief Executive of Japanese technology group SoftBank, first proposed the plan for the super grid following the 2011 Fukushima nuclear disaster. Cho met with Alexander Galushka, Minister for Development of the Russian Far East, in Seoul in early November to discuss ways to connect the two nations’ electricity network via a direct current electricity cable along the seabed. “South Korea and Russia will have to form a joint working group and road map to expand cooperation in the energy sector,” Cho said in a release. The state power provider has already been working on a project to link an electricity grid with China’s State Grid Corporation of China (SGCC), Japan’s SoftBank and Mongolia’s energy development company Newcom. The demonstration project is aimed at building a 2 GW complex that can produce solar and wind power in Mongolia and a seabed power grid connecting the three nations. The scope of the project was expanded to include Russia during an economic forum held in Vladivostok in September. Although essentially aimed at strengthening the region’s energy security, the super grid is also seen by South Korea President Moon Jae-in as a foundation for deeper regional economic and security integration. President Moon believes the initiative could bring nations together in a region on edge over North Korea’s nuclear provocations. However, some analysts have questioned the project’s viability. “It is not technically impossible and could boost energy security,” said Kang Seung-kyung, an analyst at Korea Investment & Securities. “But it will take a long time to reach a political agreement and actually establish the energy network.” Solar helps Japan cut emissions but prices still high n Solar prices eight times higher than some parts of the world n Project launched to cut carbon footprint of households Bangladesh bets big on gas The head of Philippines Trade Undersecretary and Board of Investments (BOI), Ceferino Rodolfo, said the production of renewable power is becoming cheaper and it is fast becoming a better alternative towards addressing power-sufficiency and cost-effectiveness in the economic development of the country. The statement came as the BOI approved the application of nine renewable energy projects valued at Peso26.7 billion ($530 million) with a total capacity of nearly 333 MW. Based on the Department of Energy’s renewable energy roadmap 2017-2040, the country expects to have at least 20 000 MW of renewable energy installed by 2040. “In other parts of the world, renewables like solar are already cheaper than fossil-fuel based power and these countries are already transitioning to a 100 per cent renewable electricity,” Rodolfo said. “Sooner or later, we have to face this inevitability with the expectation it will bring down power costs while ensuring enough power supply for the country,” he added. The Philippines also recently signed an amended memorandum of agreement (MOA) with New Zealand Ministry of Foreign Affairs on Trade on cooperation related to geothermal power resources. According to Alfonso Cusi, head of the Department of Energy, the geothermal energy cooperation between Philippines and New Zealand “expired in October of this year and will be renewed for another three years”. Geothermal is just one area of expertise that New Zealand can share with the Philippines. New Zealand plans to Japan’s first auction for contracts to provide solar electricity have pushed solar prices down by nearly a quarter from a previous system, but the cheapest bid was still more than eight times higher than a record-low achieved recently in overseas markets, government data shows. The lowest accepted price for solar projects was Yen17 200 ($153.20) per MWh, according to documents from the Ministry of Economy, Trade and Industry (METI), which handled the auction in November. This was down from Yen24 000/MWh in the year through March 2017 for projects approved under METI’s feed-in-tariff programme set up in 2012 to encourage a switch to renewables after the Fukushima nuclear disaster. The price, however, is still far higher than those seen in a recent solar power auction in Mexico, which delivered bids as low as $19.70/MWh. “It is encouraging to see prices in Japan coming down. However, it is worrying that prices are falling faster in other parts of the world,” said Tomas Kaberger, energy and environment professor at Chalmers University of Technology in Sweden and chairman of the Renewable Energy Institute in Tokyo. Government incentives have enabled Japan’s solar power production to soar to more than 40 000 GWh from virtually zero before 2012. Solar is a key part of the country’s plans to reduce CO2 emissions by generate all electricity from renewable sources by 2035 – a target that some experts believe is possible. Last winter, up to 93 per cent of generation came from renewables at times, and the former government aimed to have 90 per cent of electricity from renewables across an entire year by 2025. John Kidd of Woodward Partners said: “I do think the 100 per cent renewable target is materially achievable. I add the rider ‘materially’ because there are likely to be site-specific pockets of demand where renewable options may simply not be feasible, but these generating 24 per cent of its power from renewables by 2030, up from 14.6 per cent in 2015. Japan has committed to reducing greenhouse gas emissions by 26 per cent by fiscal year 2030 (compared to fiscal 2013 levels). As part of those plans, last month Oracle Utilities announced that it is working with the Ministry of Environment and five major power utilities in the country as part of the Ministry’s effort to promote a Japanese model of information-based CO2-reducing behavioural changes in the residential sector. With nearly 70 per cent of the average Japanese household’s carbon footprint stemming from energy use, Japan’s Ministry of Environment (MOE) commissioned a nationwide study to measure the potential of residential behavioural energy efficiency programmes as a means of reaching Japan’s fiscal year 2030 CO2 emissions reduction goals – of which a 40 per cent reduction is required in residential sector emissions alone. As part of this effort, Oracle Utilities will work with five major Japanese utilities, including Hokkaido Gas, Ltd., Tohoku Electric Power Co., Inc., Hokuriku Electric Power Co., Inc., Kansai Electric Power Co., Inc., and Okinawa Electric Power, Co., Inc., to deliver Home Energy Reports (personalised energy consumption communications) to residents across each utility territory using the Opower Energy Efficiency Cloud Service platform. might eventually be few. “The key enabler to this is energy storage – in New Zealand’s case more so than generation itself. Battery and fuel cell technologies are advancing rapidly and will become increasing- ly mainstream as their economics improve.” n Businessman Salvador “Buddy” Zamora II has unveiled a plan to build a 1.1 GW gas fired plant, together with a Chinese partner, in Zambales. It will be the first LNG plant in the Philippines and is targeted to be operational within the next three years. Bangladesh is set to significantly boost its gas fired generating capacity following agreements to build two major projects. Germany-based Siemens recently signed a Memorandum of Understanding (MoU) for setting up a 3600 MW combined cycle power plant based on liquefied natural gas (LNG) by 2021 at Dhankhali in Patuakhali district. State Minister for Power, Energy and Mineral Resources Nasrul Hamid said this represents the single largest investment from Germany, noting: “The estimated cost is $2.8 billion including debt of $2.4 billion and equity $400 million.” The project details will be implemented in three phases. It is expected that the first 1200 MW unit of the plant will go into operation in June 2020, while the second with the same generating capacity will startup in December 2020 and the third in December 2021. Meanwhile, a joint venture of the state-run Coal Power Generation Company Bangladesh Limited and Japan’s Mitsui and Company Limited is set to install a 500-600 MW imported LNG-based power plant involving an investment of approximately $600 million at the under-construction Matarbari power station, Cox’s Bazar. The Coal Power Generation Company managing director told local press reporters that the LNG-based power plant was expected to be commissioned by 2021. Philippines says renewables fast becoming “a better alternative”
Energy Industry Times December 2017
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