Asian Power (November - December 2014 by Charlton Media Group

ISSUE 66 | DISPLAY TO 31 DECEMBER 2014 | www.asian-power.com | A Charlton Media Group publication

US$360P.A.

sarawak energy’s tactics ceo sjotveit eyes 12 new hydro projects but must overcome ngo opposition

MICA(P) 248/07/2011

analysis Rerating China’s IPPs 2.0: How ash can become cash

country Report Vietnam’s green growth dream vs. regulations

first Exploring Indonesia’s gas-for-energy dilemma

ANALYSIS Where will Asia find its 436 nuclear power plants?

PAge 40

PAge 18

PAGE 7

PAge 36

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FROM THE EDITOR Now on its 10th year, the Asian Power Awards continues its tradition to recognize top achievers in the region as they unceasingly strive for quality and excellence in their own categories. Flip through the pages and take a sneak peek of what has transpired during the awarding ceremony held at the Shangri-La Hotel, Kuala Lumpur. Dubbed as the ‘Oscars’ of the power industry, the event was graced by nearly 100 key executives from exceptional companies in the industry.

Publisher & EDITOR-IN-CHIEF Tim Charlton ASSOCIATE PUBLISHER Laarni Salazar-Navida production editor Roxanne Primo Uy GRAPHIC ARTIST Tamara Pangilinan Editorial Assistant Joana Rizza Bagano Editorial Assistant Queenie Chan EDITORIAL ASSISTANT Jason Oliver

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In this issue, our team caught up with Sarawak Energy CEO Datuk Torstein Dale Sjotveit who was also named as the CEO of the year at the Asian Power Awards. He was recognized for his leadership in transforming the Sarawak state-owned utility company into a modern and agile corporation, in line with its vital role in powering Sarawak’s development through the Sarawak Corridor of Renewable Energy (SCORE). In the interview, he shared with us why the firm remains unstunned by the rise of anti-dam construction sentiments. For the regular country reports, we have Indonesia and Vietnam in the spotlight. Find out how their respective regulatory frameworks are impeding the growth of their renewable energy sectors.

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Finally, check out a series of reports pertaining to several power developments in other Southeast Asian countries. The Philippines, for instance, has a promising solar sector with an expected ten-fold increase in feed-in tariff allocation and increasing viability of bilateral projects. Enjoy!

Tim Charlton

Asian Power is available at the airport lounges or onboard the following airlines:

Can we help? Editorial Enquiries If you have a story idea or just a press release please Email: ap@charltonmedia.com and our news editor will read it. For a personal message to the editor put the word “Tim” in the subject line. Media Partnerships Please Email: ap@charltonmedia.com and put “partnership” on the subject line and it will forward to the right person. Subscriptions Email: subscriptions@charltonmedia.com Asian Power is published by Charlton Media Group. All editorial is copyright and may not be reproduced without consent. Contributions are invited but copies of all work should be kept as Asian Power can accept no responsibility for loss. We will however take the gains.

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ASIAN POWER 1

EDITORIAL CONTENTS

ANALYSIS

will Asia find its 436 nuclear 36 Where power plants by 2035?

ap awards 2014 Asian Power celebrates 10 rewarding years of recognizing the leaders in Asia’s power sector

First

Find out why Japan’s renewables 10 race is getting cutthroat

FIRST 06 China sets universal green targets 06 Can Vietnam handle 10 nuclear plants by 2030? 07 Indonesia’s gas-for-energy dilemma

ANALYSIS 13 CEO Interview: Sarawak Energy eyes 12 new hydro projects,

40 Rerating China’s independent power producers 2.0: How ash

07 The Chartist: Thailand’s primary energy supply

can become cash

OPINION

08 China’s coal crisis persists 08 Will China’s tariff cuts for wind farms hurt developers?

but must overcome NGO opposition

44 DEBAJIT DAS: Powering Asia’s next 100 million 46 ARTHUR MITCHELL: Will there be a continued boom

REGULAR 18 Find out why and how regulatory weeds could choke

or bust for Japanese renewables?

48 JOHN GOSS: A visionary energy strategy for China

Vietnam’s green growth dream

14 What is hindering indonesia from becoming a

renewable energy powerhouse in asia?

Published Bi-monthly on the Second week of the Month by Charlton Media Group #06-09 E, Maxwell House 20 Maxwell Road

2 ASIAN POWER

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News from asian-power.com Daily news from Asia most read

IPP

environment

China IPPs brace themselves for more rounds of tariff cuts Potential tripling of operating cash flows together with substantial improvement in FCF (from being FCF negative) are two key changes the new cycle for coal-to-power in China will herald for the IPP sector in 3-5 years. According to a research note from Barclays, a prolonged period of lower coal prices could bring a few more rounds of tariff cuts, which Barclays has factored into its estimates. Despite that, it estimates FCF yield for the IPPs under its coverage (CR Power, Huaneng,Datang, CPI and Huadian) improves to over 30% by 2018E.

IPP

China’s added energy power capacity hit over 1100 GW in last 20 years It has been observed that China is by far the world’s largest power market with an installed capacity of 1250GW by the end of 2013, and its growth in installed capacity has been rapid and has grown in sync with economic growth over the last two decades. According to a research note from Barclays, China added over 1100GW of capacity in the last two decades, averaging 50GW of addition every year (80-90GW per year in the last ten years), which is equal to building Australia’s entire installed capacity every year.

Huaneng Power eyes 80GW capacity growth in the next 3 years Although the Huaneng Power International share price has tripled from its trough in early 4Q11, it is believed that the company’s ten-fold increase in EPS (albeit from a near loss situation) over the same period has not yet been fully priced in. According to a research note from Barclays, the company could generate a FCF yield of well over 30% on a normalized basis. The report said that annualised FCF potential of RMB30bn on a normalized basis could fully de-gear the balance sheet in five years.

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FIRST of the total cost. Richard Myers, VP for policy development, planning and supplier programs at the Nuclear Energy Institute, sees construction of the first power plant starting in 2017-2018 and the commercial operation beginning in 2023; the schedule of the second plant one year behind the first. Vietnam is expecting total nuclear generating capacity to surpass 10,000 megawatts by 2030, he adds. The first four nuclear energy facilities are expected to generate at least 1,000 megawatts each from the coasts of the southern province of Ninh Thuan.

China sets universal green targets

Expect more wind turbines and photovoltaic stations in China within the next two years, as the government will soon require all provinces and grid companies to meet renewable power generation adoption targets. Under the renewable quota system believed to be released before year-end, China is batting for a long-term renewable energy target and development plan that seeks to reduce the country’s massive dependence on coal. The country has been plagued by pollution in recent years, leaving Beijing residents scrambling for gas masks as smog envelopes the capital. China’s renewable energy law aims to create a sustainable renewable energy industry through a favourable tariff and costsharing mechanism, guarantee purchase, prioritized dispatch, a development fund and fiscal support. The sector will draw funds from renewable energy power price surcharge and an earmarked fund. Massive resource potential Recent statistics provided by the Centre for Renewable Development at China’s Energy Research Institute shows the country’s massive resource potential, with a 540 GW technical potential and 400 GW economically viable potential in hydropower; 2,580 GW onshore and 510 GW offshore in wind; two-thirds of the land with more than 2,200 sunshine hours; and 500 million tce in agriculture and forestry residue. Under the new measure, stricter emission controls on coal-fired generation will be put in place, limiting coal consumption of new coal-fired power plants to less than 300g/ kWh by 2020. Existing plants will be limited to a maximum of 310g/kWh. This implies that power generators will have to improve the coal efficiency of existing and new power plants. “As IPPs are expected to construct larger generation units to boost fuel efficiency, their capex will increase. This will be slightly negative for IPPs in the short term but will help lower fuel cost longer term due to improved efficiency,” says Ricky Ng of Maybank Kim Eng. Ng adds the the renewable energy requirement will drive more installation growth in 2014-2015, urging investors to snap up shares in GCL-Poly, Longyuan and Huaneng Renewables. 6 ASIAN POWER

Vietnam goes all out in nuclear

Can Vietnam handle 10 nuclear plants by 2030?

ith an expanding manufacturing sector fuelling strong economic growth, Vietnam is turning to nuclear energy to keep pace and make ends meet. Vietnam’s National Assembly passed plans to build the first of two 1,000 MWe reactors at Phuoc Dinh, Ninh Thuan province by 2014, and the government is planning to add six more. Vietnam has inked a deal with Russia’s Atomstroyexport to build two nuclear power plants in Ninh Thuan. The Russian Government’s Ministry of Finance is financing at least 85% of the first plant. It will also supply the fuel and remove the used fuel for the life of the reactors.In 2011, Vietnam and Russia signed a deal securing up to $9 billion in construction financing from Moscow. Another agreement worth $500 million financed a nuclear science and technology centre. Vietnam has also signed an agreement with Japan for the construction of two nuclear reactors at a second site in Ninh Thuan, expected to come online in 2024-2025. A second agreement was signed for the Japan Atomic Power Company and the International Nuclear Energy Development of Japan Co. Ltd. to work on the power plant project. Like the agreement with Russia, the plan will involve financing and insurance of 85%

Richard Myers

Mely CaballeroAnthony

Meeting standards In a study by Mely Caballero-Anthony, associate professor at the Nanyang Technological University, Vietnam is projected to have nuclear energy accounting for 10.1% of electricity production by 2030, and nearly a third of the country’s entire share by 2050. “To expand its nuclear energy program from a single research reactor today to 10 commercial nuclear power plants in 2030, Vietnam requires more than imported technology, equipment and fuel; it also requires regulatory, operational and training services,” Myers says. Myers adds that the country has set very high standards for nuclear non-proliferation, being a party to the Treaty on the Non-Proliferation of Nuclear Weapons since 1982. In fact, the country brought a Comprehensive Safeguards Agreement into force with the International Atomic Energy Agency in 1990, and signed the agency’s additional protocol in 2007. “Vietnam’s emergency protocol is still not yet in cnformance with the International Atomic Energy Agency’s emergency preparedness and response standards. Vietnam has yet to come up with a comprehensive NPP security plan,” adds Caballero-Anthony.

Projected share (%) of nuclear power in Vietnam’s energy mix

Source: Dung, 2011; Ninh, 2013a

FIRST

Chairani Rachmatullah

Shamim Razavi

Stephanie Wilson Bankrolling in Bali

Indonesia’s gas-for-energy dilemma

hen Indonesian state-owned distribution company PT PLN (Persero) signed loan facilities for EUR 160 million with Standard Chartered to finance gas power plant projects early this year, it may have boosted confidence in the country’s gas-for-energy generation potential, but some analysts see prevailing economic roadblocks. Indonesia has large reserves of gas but there is financial uncertainty as to whether these are best used to generate electricity or sold to the international market. “Because they have regulated prices domestically for gas, it presents a

problem as they can either use their own reserves or buy more expensive LNG in the international market,” says Stephanie Wilson, managing editor, Asia LNG at Platts. “They’ll need to raise their gas price before they can go ahead with any large-scale move to gas for electricity generation,” she adds. Meanwhile, Saara Kujala, manager, power plant development and financial services, Wärtsilä, says that the key to successful financing of LNG-fuelled power projects with dedicated LNG supply is in structuring a competitive and robust LNG supply chain even for small-scale LNG deliveries.

Saara Kujala

Kujala says that specific attention is needed for the risks related to security of LNG supply, cost over-runs and delays. “To mitigate some of these risks, a developer would be looking to sign an EPC contract that can take the LNG receiving infrastructure as well as the power plant under a fixed price and date certain arrangement,” she adds. Chairani Rachmatullah, senior manager for energy planning and evaluation at PT PLN (Persero) agrees, saying that it would also help to develop the economic logistic system to support LNG power plants. The problem stems from the small size of scattered peaking gas power plants that would require small gas volumes for each. Senior foreign legal counsel Shamim Razavi from Norton Rose Fulbright advises that investors will have to look for government support for the future financial viability of the projects. “One of the potential growth areas are power projects outside of Java and Sumatra where the shortfall between supply and demand is at its most acute,” Razavi adds. In the next four years through to 2018, PLN plans to add roughly 1,200 MW in capacity under its Mini LNG Projects for Gasification program.

PLN’s mini LNG projects

Source: PT PLN (Persero)

The Chartist: Thailand’s primary energy supply Thailand’s primary energy mix will experience a few shifts in its composition in the run up to 2025, a report by Macquarie Research says. Renewables and hydro will be the big gainer in the coming years as mature fields like oil and gas decline. Also, the latest PDP plan calls for a doubling in imported hydrobased power from Laos and Myanmar by 2025. Macquarie adds that to achieve the government target of 25% renewable contribution by 2021, Thailand will add 2GW solar power generation capacity, 1.2GW wind power generation capacity and 4.39GW bio energy capacity. Thailand’s total non-hydro renewable capacity is projected reach 10GW, assuming the prevailing new addition pace is not disrupted by the ongoing political uncertainty.

Thailand primary energy production - to be essentially flat to 2025

Source: BP Statistical Review 2013, Macquarie Research, October 2014

Thailand primary energy production change 2013 vs 2025e

Source: Source: BP Statistical Review 2013, Macquarie Research, October 2014

ASIAN POWER 7

FIRST

China’s coal crisis persists

IPP WATCH

Huaneng Power eyes 10 projects from parent group

hen Premier Li Keqiang unveiled his campaign against pollution, coalfired plants effectively received their death knell – but don’t expect them to die down quietly. Instead, coal-fired plants should see a strong resurgence in the next couple of years due to a combination of positive project economics and low coal prices. China will see a temporary spike in coal-fired projects and power capacity additions before slowly ebbing as the country ramps up its production of nuclear and renewable energy. The resurgence of coal-fired plant construction has been and will be driven by stable capital costs, accommodative tariff reform, and sustained low coal prices, says Adrian John, managing director at Precergy. This is despite promises by major China provinces to cut down on coal energy use. “Project economics for coal-fired plants in China have improved greatly since 2012 and provide a strong investment signal for such projects,” says John. Coal-fired plants benefit from a new policy that allows for 90% of coal price costs to be passed on to consumers when coal prices fluctuate by more than 5% on an annual basis. To put the savings into context, similar policy in 2004 only allowed for 70% of the fluctuations to be passed on to

Storm before calm?

consumers. Meanwhile, steam coal prices have mellowed to nearly half of the peak prices in 2008, which has enabled the big five coal energy producers to post large profits in 2013, according to John. But while market forces are making a strong case for building more coalfired power plants, the spike in coal power project activity levels will be “short-lived” in the face of formidable government and public support for curtailing coal use. “Recently adopted air quality policies and the growth of renewable energy show signs of a major change in trend,” says Li Shuo, climate & energy campaigner for Greenpeace China. Shuo points out that 12 of China’s 34 provinces, accounting for $44 of China’s coal consumption, have already pledged to implement coal control measures. Collectively, these measures imply a reduction in coal consumption of approximately 350 million tonnes (MT) by 2017 and 655 MT by 2020.

Huaneng Power is acquiring 10 projects worth CNY9.3b in total from its parent, the Huaneng Group. The projects are Hainan Power, Wuhan Power, Suzhou Power, Dalongtan Hydropower, Hualiangting Hydropower, Chaohu Power, Ruijin Power, Anyuan Power, Jingmen Thermal and Yingcheng Thermal. The asset injections should be completed by 1 Jan 2015. The company’s total attributable capacity could increase by around 9% by end 2014.

Singapore registers largest CDM project

Adrian John

Li Shuo

Will China’s tariff cuts for wind farms hurt developers? When China’s National Development and Reform Commission announced that it was considering fresh tariff cuts for wind farms, developers knew better than to panic – even with proposed reductions of up to CNY0.07kWh. They can take comfort from analyst expectations that the final tariff cuts will shave off only a small amount from their bottom line. “We believe the final tariff cuts will be smaller judging by the conservative tariff reductions for coal-fired generation,” says Howard Wong, research head for oil & gas at Maybank Kim Eng. Since the proposed tariff cuts are just for new wind farms that will begin operation in mid-2015, Wong estimates relatively minimal earnings impact on renewable energy producers. But more tariff cuts will likely be implemented in the next five years, at the rate of 5% every two years, starting from 2015 to 2020, says Joseph Lam, research analyst at Nomura International Hong Kong. These will be driven by central government targets to reach grid-parity by 2020, the decline in equipment cost and further improvement of the curtailment issue that has resulted in billions of revenue lost. 8 ASIAN POWER

PacificLight Power’s 800MW combined cycle gas turbine power plant has been successfully registered as a Clean Development Mechanism (CDM) project under the United Nations Framework Convention on Climate Change, making it the largest in Singapore. Situated on Jurong Island and worth $1.2b, it features the latest F-class gas turbines. It bills itself as the only fossil fuel-based power project in Singapore.

Vietnam’s Song Bung 4 to be operational by end 2014

Joseph Lam, research analyst, Nomura

What is coal’s effect on wind?

A major milestone has been achieved on Vietnam’s Song Bung 4 hydropower project with the closure of the river diversion and start of reservoir impoundment. The first major hydropower project in Vietnam to be funded by the Asian Development Bank, the 156MW scheme involves construction of a 110m high roller compacted concrete dam, a 3.2km long headrace tunnel of 7.2m diameter and a 16m diameter surge shaft, as well as an intake structure and powerhouse.

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FIRST

Philippine solar faces growth spurt

f investors have been waiting to venture into the Philippine solar energy market, now would be the perfect time to get out of the protective shade. The next five years should see rapid market maturity, and large jumps in cost efficiency and profitability. The market’s prospects are shining brighter with a looming ten-fold increase in feed-in tariff (FIT) allocation for solar energy and increasing viability of bilateral projects. These developments should make it worthwhile for investors to finance solar power projects, despite lingering regulatory risks. “Equity investors are encouraged to get into the market now because in just 5 years the industry is expected to mature quickly and become very competitive, says Andrew Affleck, founder and managing partner at Armstrong Asset Management. Affleck points to a couple of drivers that are accelerating the sector. First is the energy department’s recent proposal to increase the FIT allocation for solar energy from 50MW to 500MW within the next 18 months. There is also a move to improve the tariff structure to incentivize the quick construction of solar plants as the government tries to alleviate the expected energy supply shortfall in the summer of 2015. Momentum is also being driven by the success of bilateral projects which contract directly with local offtakers and distribution utilities instead

of joining the already crowded FIT program. Affleck says investors that back bilateral projects avoid the uncertainty risks that typically hamper FIT projects, as the former come with a power purchase agreement and clear tariff structure with a direct payment mechanism. Foreign investors would be blind to ignore the wealth of opportunities in the Philippine solar industry, says Ruth Briones, Chairman and CEO at Greenergy Solutions Inc. She estimates the potential market for solar industry players at about $450 million, or P19 billion, yearly. This is based on the 50,000 households, which represent 10% of the half a million constructions yearly that can install solar panels with a capacity of 2 kilowatts. Briones says this has led to a rush of foreign and local solar technology developers competing to install solar panels on rooftops of households, commercial establishments and buildings. Demand has increased due to the combination of the strong cost savings promised by solar panels and the relative affordability of the technology. “To produce a kilowatt of solar power from these rooftop panels, one would need to invest about $4,500 for the actual components and installation works. Investment can be recovered in about seven years. Solar panels usually last for at least 25 years,” says Briones. But Armstrong Asset Management’s Affleck warns that foreign

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Datuk Torstein Dale Sjotveit CEO, Sarawak Energy

12 ASIAN POWER

CEO INTERVIEW

Sarawak Energy eyes 12 new hydro projects, but must overcome NGO opposition

CEO Datuk Torstein Dale Sjotveit says the twelve dams being studied would produce just over 4,000 MW.

nti-dam construction campaigns are growing in the northwest Borneo, but they aren’t slowing down Sarawak Energy (SEB). The state-owned power supplier and dambuilding company has in fact been experiencing unprecedented growth over the last four years. In an interview with Asian Power, Datuk Torstein Dale Sjotveit, the Chief Executive Officer of SEB, reveals that the company has achieved a significant 70% increase in its revenue and profit. Moreover, he notes that it has also increased its manpower by more than 50%, improved reliability to its customers by 25%, and increased the rural electrification coverage from 65% to 80% throughout Sarawak. “Of course, we cannot stop the anti-dam NGOs from their propaganda, but we can educate the community on the benefits of hydropower and the massive development it brings. We constantly issue correct and reliable information to the media (online and offline) and respond to genuine queries from NGOs. We have also engaged with those who are willing to discuss and contribute to areas of improvements for the betterment of the people,” says Sjotveit. Sarawak Energy’s projections indicate that by 2020, the energy demand for the Sarawak Corridor of Renewable Energy (SCORE) will grow to over 3,500 MW. How is SEB meeting its required capacity to match this demand? On a broader perspective, the ASEAN region is experiencing an economic boost, resulting in the rise of energy demand of about 3-4% per year. We look forward to energy exports to our neighbours. We have inked to export to West Kalimantan and are optimistic of exporting to neighbouring Sabah, Brunei, and Peninsular Malaysia next. I believe that Sarawak has the advantage to attract investors due to its competitive electricity tariffs that came from stable generation sources. Its strategic location in the centre of ASEAN, halfway between China and India, with sound transport infrastructure, a young and educated workforce, as well as a stable government provide favourable regulation and investment incentives for businesses, especially for energy intensive industries. Responding to the increasing demand, Sarawak Energy capitalizes on our strategic advantage of unique generation mix. While our current generation mix is at 60% hydro and 40% thermal, we are embarking on generation expansion projects from different energy sources, mostly capitalizing on our abundant resources of coal and hydro. Not relying on only one source of generation, we have a higher stability in power generation. With the commercial commissioning of Murum HEP by end of 2014, we anticipate that our generation from hydro will increase from the existing 60% to 75%. Sarawak Energy has identified a further twelve sites as being highly prospective for the construction of further hydroelectric projects. However, construction work for any hydroelectric projects will only begin once feasibility studies and comprehensive Social and Environmental Impact Assessment (SEIA) reports have been conducted by Sarawak Energy and approvals obtained from the State Government. The twelve dams being studied would produce just over 4,000 MW. Adding to the 2,400 megawatts capacity of Bakun and the 944 MW from the upcoming Murum, the state will have a potential of close to 8,000 MW of hydropower by the early 2020s. This is in addition to gas and coal generation of as much as 3000 to 4000 MW.

What are latest developments and progress in the SEB-owned 944 MW Murum dam? Murum HEP is Sarawak Energy’s second hydropower project after Batang Ai with an installed capacity of 944 MW. The commercial commissioning of Murum HEP is coming up, with the first set of energy anticipated before end of the year. Sarawak Energy assures that the Murum HEP is perfectly safe and is subjected to stringent quality controls. As a matter of fact, we have developed proper processes to ensure that quality issues will be detected at an early stage. As in all our projects, a rigorous Completion Management System (CMS) is implemented. In addition, there is a comprehensive testing programme, ensuring the stability of the generating unit, prior to the handover from the contractor and commissioning of each machine. Sarawak Energy also brings in international specialists to carry out checks at different stages of the project. The engagement of international experts is part of our commitment to stringent quality control for the materials. What other projects are in the pipeline? Sarawak Energy has just signed a contract for the construction of 2 x 300 MW Balingian coal-fired plant set to produce its first energy by end of 2017. We have embarked on Social Environment Impact Assessment (SEIA) studies for our hydro projects in the pipeline, namely Baram and Baleh HEP. For Baleh, Sarawak Energy is currently awaiting approval from the State Government, and as for Baram, we are finalizing the SEIA report for submission of approval. Other than these projects, we are doing ongoing feasibility studies of mini-hydro projects in a number of potential sites, as well as pre-engineering studies for additional thermal power plants. To support our generation planning, we aim to further strengthen our transmission system, with the construction of 600 km backbone 500 kV transmission lines expected to be completed in 2016, as well as construction and expansion of extra high-voltage substations. All these projects when fully completed will further enhance the State Grid System to ensure ample, secure and reliable power for our consumers. Planning ahead, we are also preparing the necessary infrastructure to play our role in the regional energy supply through the much anticipated ASEAN Power Grid. How is SEB responding to opposition to dam projects? Hydropower has been proven to be a successful development model in developed countries such as Canada, United States, Australia, and Norway. Sarawak is emulating the same model as we have abundant of hydropower resources, which is our competitive advantage moving forward. I believe that hydropower is the answer to depleting natural resources and rising energy demand in this region. Given hydropower’s ability to produce at an average competitive cost of USD0.05, this sustainable renewable energy resource would drive economic growth in the ASEAN region. Hydropower is a more suitable option for Sarawak compared with alternative renewable sources such as solar power. Looking at Bakun HEP as an example, it is producing 20 TWh annually. If we were to embark on solar power that gives an equivalent output of 20 TWh, it would take about 500 square kilometres of solar panels at a cost of more than USD30billion. ASIAN POWER 13

Country report 1: Indonesia

Rural Indonesia benefits from renewables

What is hindering Indonesia from becoming a renewable energy powerhouse in Asia?

Can the country clear up the uncertainties that kept development of renewables to less than a tenth of its potential?

hen the Indonesian government passed the revised Geothermal Law in August 2014, it was widely seen as small step towards a clearer operating environment for renewable energy development, but analysts argue that the sector has long passed the need for minute corrections. What is required now are big leaps in regulatory clarity and end-user pricing if the country hopes to produce renewable energy to its full potential. Uncertainty remains the biggest hurdle for renewable energy development, says William I.Y. Byun, managing director at Greenpower Fuels. “To what extent is foreign ownership permitted? Who pays: local or national Perusahan Listrik Negara (PLN)? Is there a standardized power purchase agreement (PPA)? Without very clear and quick answers to such questions, any need to ‘consider’ or ‘get back to you’ means the investor may have departed for Thailand or other markets where the answers are down pat.” He adds project red tape has also come up as a challenge to certain projects. Analysts believe these hurdles are a shame given Indonesia’s tremendous opportunity to become a renewable energy powerhouse. The country has the potential to produce roughly 140 GW of 14 ASIAN POWER

Camilla Fulland

Harsh Thacker

William Byun

power across three of its most promising renewable energy sources: hydropower, geothermal and biomass, says Shobana Venkataraman, principal investment officer at International Finance Corporation. Unfortunately, only a fraction of this potential power is being produced. Venkataraman says Indonesia has been estimated to be able to produce 76 GW of power from large hydroelectric sources and 500 MW from small hydroelectric sources. But as of 2013, only 5.7 GW has been installed from large hydroelectric facilities, and another 218 MW has been installed from small hydroelectric facilities. Similarly, Indonesia has not fully capitalized on its strength as the nation with the largest known geothermal power generation potential of roughly 27 GW, of which 8-10 GW is considered to be economically viable when environmental benefits are considered. “Although geothermal power has been utilized in Indonesia for over two decades, only a fraction of the potential resources – a little over 1 GW – has been developed thus far,” says Venkataraman. Indonesia also holds a high potential for biomass power generation due to extensive agricultural activities, with an estimated 124.7 million tons of biomass

produced annually. The country can generate an estimated 50 GW of power from biomass. A key reason why Indonesia has been slow to construct renewable energy projects to tap into its vast resources is its poor implementation of renewable energyrelated laws and regulations. A standout example is the revised Geothermal Law, says Venkataraman, which still requires ministerial regulations to provide guidelines to specific activities cited in the law such as the process of project tender by the central government and the funding mechanism for exploration activities. The government also passed the Land Acquisition Law to ease difficulties faced by the private sector in acquiring land for large infrastructure projects. However, Venkataraman points out that the law only applies to new projects, which leaves existing projects bogged down by land acquisition issues. There are many other contradictions and points of confusion in different regulations, which has scared off potential investors, according to other analysts. Shackled potential Indonesia could greatly benefit from a more clear-cut environment to speed up the completion of renewable energy

Country report 1: Indonesia projects and help the country meet its skyrocketing energy needs. With a population of more than 250 million, and one of the largest and fastestgrowing economies in Asia, Indonesia is terribly hungry for energy. Currently the country depends largely on fossil fuels, but the government has realized that for long-term energy security in the face of dwindling oil production, it has to develop its abundant and diverse renewable energy resources. “There is a huge identified potential for geothermal, biomass and solar power in Indonesia. And renewable energy generation can provide the much needed support alongside conventional power plants in meeting over 8% increase in electricity demand in Indonesia,” says Harsh Thacker, senior research analyst, energy & environment practice at Frost & Sullivan Asia Pacific. Indonesia’s oil production has decreased from 1.6 million barrels/day to 1 million barrels/day, while the nation’s energy consumption is expected to increase up to 10% within the next 10-15 years, factoring in fossil oil depletion in Indonesia, says Dr Hadiyanto, assistant professor, chemical engineering department at Diponegoro University. Faced with this predicament, the government has outlined a strategy to increase the share of renewable energy sources into the Indonesian energy mix. By 2025, the government is targeting a rise in renewable energy use to 17% from the current use of between four and five percent. The majority of this renewable energy will help bring power to the remote islands of Indonesia. Renewables are a better fit for these tiny islands across the archipelago, says Byun, a significant number of which remain without power. While Java and Bali have an electrification rate of greater than 95%, Indonesia’s national electrification rate is at 75%, notes Hadiyanto. “Indonesia does not have a widespread grid and often not a sufficient localized generation capacity outside of Java-Bali. As a result, because renewables tend to be smaller and more localized – and since Indonesia has extensive options for renewables such as biomass and hydropower – such demand growth in the ‘outer islands’ is driving interest in renewables,” says Byun. Geothermal, hydropower or biomass? Even though smaller islands have a large technical potential to generate and consume renewable energy, the remoteness of such locations hurt their economic feasibility, according to Camilla Fulland, investment analyst at Differ Group.

Of the three largest renewable energy sources that Indonesia can harness, Fulland says biomass shines the brightest as the most viable, along with solar photovoltaic (PV) sources. “For a majority of Indonesia’s 922 permanently inhabited islands, distributed electricity generation or stand-alone systems are the only economically feasible solutions, with biomass and solar PV holding the largest potential.” Fulland says geothermal and large-scale hydropower energy projects, by contrast, face significant environmental risk assessments and major investments in transmission infrastructure which can lower their financial feasibility. But considering the near-term outlook, focus could swing towards harnessing geothermal and mini-hydro sources, says Bikal Pokharel, senior analyst for Asia Power at Wood Mackenzie. “Geothermal power holds the most promise, with the estimated potential of over 20 GW across Indonesia. Indonesia has yet to develop their biomass, solar and wind projects, and these would be more of a longer term potential.” The biomass sector has its share of challenges ahead, such as the lack of an existing model to guarantee dependable long-term supply of feedstock for power projects to be connected to the national grid, says Venkataraman. Biomass projects also experience difficulties aggregating agri-waste feedstock. Key barriers There is no doubt among analysts that Indonesia possesses all the raw ingredients for a renewable energy boom. Its renewable energy resources are vast, the imperative to develop non-fossil fuel energy sources is strengthening, and there is an ever-deepening well of demand amid blistering economic expansion. But the devil is in the details, and Indonesian government has been regrettably slow to create a more accommodating operating environment where projects can be started and completed without a range of complications. “The key barriers are subsidized enduser prices at levels below renewable energy generation costs, unclear regulations and bureaucracy, PLN reluctance to sign PPAs with independent power producers, as well as foreign ownership regulations preventing private participation,” says Fulland, summarizing the array of hurdles a typical renewable energy project faces in Indonesia. Fulland says the subsidy regime is especially discouraging for renewable energy production. “As long as electricity is sold at prices below renewable energy generation cost, the state owned utility, PLN, has

“Indonesian government has been regrettably slow to create a more accommodating operating environment where projects can be started and completed without a range of complications.”

no incentives to increase the renewable energy share of the electricity mix.” For 2014, around $22 billion (IDR 280 trillion) will be spent on the subsidy, which consequently tilts the economical balance of the country, says Hadiyanto. “To supply the national demand for oil, Indonesia is still importing from other countries, which makes the price on the domestic level really dependent upon the world oil price, and consequently increases the subsidy. This is a serious problem, when the government has to reduce the oil subsidy but the renewable energy is still not well developed yet.” The government has recently moved to address this problem by rolling out a new scheme that raises the tariff by 64% for electricity purchased from mini-hydropower plants. This should improve the breakeven timeline for renewable energy projects, says Thacker. While the tariff increase will encourage project developers to take on more mini-hydro projects or fast-track those currently in the funding stages, Thacker argues that these kinds of incentives are still ultimately too weak to galvanize the sector to produce renewable energy at full steam. “There are over 100 clean energy projects in the pipeline in Indonesia, but progress on their execution has been slow

Indonesian government subsidies (2014 estimates)

Source: International Business Times

Indonesia’s future energy mix

Source: Solar Business Focus

ASIAN POWER 15

Country report 1: Indonesia due to lack of clarity in government policies and licensing guidelines. The industry stakeholders consider the current feed-in tariff (FIT) and tax benefits provided are not enough to build momentum,” says Thacker. Getting back on track He explains that Indonesia should look to its neighbours Thailand and Malaysia, which have much clearer and more transparent national renewable energy programs and FIT policy frameworks. Emulating its peers can help Indonesia improve its project implementation speed and attract larger investor interest. Thacker further recommends that the government revise the legal framework for getting environmental clearances for developing geothermal power projects in forest areas, since the country can exploit its geothermal potential only when such regulations are revised. Much can also be learned from from successful renewable energy projects supported by international banks and private equity firms, says Thacker. Fulland shares this assessment, noting that despite the slew of incentives for renewable energy over the past five years – this includes FiTs for geothermal, hydropower, and solar PV, PPAs, tax incentives and value added tax concessions, Energy policy in Indonesia

Source: Sari Prima Energy

Growth in ASEAN primary energy demand

Source: Canary USA

16 ASIAN POWER

“The government should increasingly work with the private sector to tackle and finance the immense project requirements in the renewables sector.”

and the opening up of protected areas for renewable energy generation – their effectiveness is still not evident. “Successful projects that have achieved financial closure with the support of international banks and private equity firms have shared their experience as to how project profitability calculations can be carried out. When project profitability is calculated, it is very important to determine correct debt to equity ratio for any projects.” “Secondly, many of the projects avoid risk factors in their calculation. Project costing should include the risk costs for availability of fuel – sunlight, wind, biomass, steam, etc – and plant factor and reliability of the output.” Stakeholder education is equally critical for success, says Thacker, with the goal of teaching local banks, financial institutions and the concerned PLN executives to thoroughly understand the financial risks involved in a renewable project and lessen their reliance on collaterals. The government should increasingly work with the private sector to tackle and finance the immense project requirements in the renewables sector. This is one area where the government has taken strong and effortful strides, with Hadiyanto pointing to increased private sector opportunities to cooperate in infrastructure projects relevant to renewable energy development and technologies, such as electricity infrastructure that covers power stations. Hadiyanto further recommends increased research efforts and public education campaigns in order to align national priorities towards pushing for more renewable energy projects. “Since renewable energy is a new development in the energy sector, the Indonesian people’s understanding of the use of renewable energy and its potential for utilization in supporting human lives is still low. This means research and applied technology in the development of renewable energy utilization is not a priority.” “The barriers can be eliminated or improved by adopting a policy of encouraging the development of renewable energy and energy conservation, in the form of mandating utilization of renewable energy and committing to the implementation of energy efficiency and creating an energy-saving culture,” Hadiyanto adds. Hadiyanto reckons strengthening research and development is imperative for Indonesia to achieve the targets of Vision 25/25. He recommends further broadening the research partnerships to include Indonesian research institutes, other governments and international counterpartners. What should renewable energy research prioritize? Hadiyanto says efforts

should be focused on the current challenges in energy efficiency, energy planning and energy economics, issues which are not deeply studied and explored. While it is helpful to continue pointing research initiatives towards developing renewable energy technology, a more holistic approach may yield better results, he argues. There is scant research to determine Indonesia’s future energy demand outside of local government support and consultation on local energy planning efforts, says Hadiyanto. Research is currently too focused on the technological side, and while important, there is much to be gained from scrutinizing the complex issues of renewable energy supply and demand. After research, the government must then make sure that renewable energy projects can thrive in the country. A big component of this is upgrading and building infrastructure to support distributed power generation for renewable services, says Thacker. In turn, this can only be done if local engineering and consulting companies deliver high-quality services so it is in the government’s interest to create a competitive environment where the best firms are encouraged and rewarded. Hopes for new presidency? Analysts are mixed on whether the new President Joko “Jokowi” Widodo will act on these recommendations. Pokharel expresses optimism that the nation’s leader will ensure faster greenlighting of infrastructure projects, especially under increasing pressure to ease the energy problem. “There is a hope that the infrastructure projects will kick off a little faster. Indonesia is heading for severe power crunch and project delays will only make it worse. IPPs are waiting for positive signals from the government; but government backed guarantees might be necessary for IPPs to come and invest.” Thacker reckons the new government has signalled intentions to ease the fuel subsidy, which will indirectly boost renewable energy. “Fuel subsidy is a big burden for Indonesia, and the upcoming government has already announced their will of shifting subsidies from fuel and using it in agriculture.” Hadiyanto, meanwhile, says that while Jokowi has not yet announced his renewable energy plans yet due to the infancy of his tenure, his campaign indicated an inclination to explore the use of gas and coal as energy sources. The next move is the government’s, with producers and investors now waiting for the right time to pounce on the country’s renewable energy opportunities, with less risk stacked against them.

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COUNTRY REPORT 2: VIETNAM

Are renewables just on Vietnam’s sidelines?

Find out why and how regulatory weeds could choke Vietnam’s green growth dream

Insufficient regulatory pruning remains a threat to the goal of raising renewable energy to 5% of its mix by 2020.

hen Vietnam planted the seeds for a renewable energy renaissance it had right idea to fertilize the sector with strong incentives but its government has been neglecting to clear the fields of legal uncertainties and regulatory impediments. This along with insufficient funding for planning and research initiatives has the potential to stunt national aspirations to develop a robust renewable energy sector in the coming decades, warn analysts. Vietnam sorely lacks a clear and well-developed legal framework relating to renewable energy, says James Harris, global head of infrastructure at Hogan Lovells. “While certain incentives are available, renewable energy projects are generally treated as regular investment projects under the legal framework of Vietnam,” which can result in regulatory confusion and operational complications, he says. Vietnam needs to create new laws or revised existing ones with specialised mechanisms to promote investment in renewable energy. “The legal framework for renewable energy could be further developed, with renewables-specific legislation 18 ASIAN POWER

Pratibha Mehta

Andrew Scott

Sesto E. Vecchi

passed to guide the development of renewable energy projects and improve the regulatory institutional framework. For example, by setting up a specific authority to regulate renewable energy,” says Harris. While Vietnam is known to have expansive renewable sources like solar, wind and biomass, there are no reliable country-wide estimates to guide project developers and investors. This is a task that the government should consider subsidising. “It is critical that such information is accurate for planning purposes, as well as to attract significant foreign investment,” says Harris. “Many countries subsidize the surveying and exploration stage of renewable energy projects, to reduce the risk for private investors. Vietnam could consider such a policy to reduce the barrier to entry for renewable.” Regrettably, Vietnam also allots minimal funds to purchase and develop new renewable technologies as well as train its workforce to satisfy the growing staffing requirements among renewable power projects, says Sesto E. Vecchi, analyst at Russin & Vecchi. “It is unlikely that the government will expend significant public funds

on the research and development of alternative and clean energies. The government is more likely to rely on progress that occurs in other countries and to adopt these newer, imported technologies via foreign and domestic investment.” Vietnam lacks programs to augment or reshape workforce skills that involve current renewable technologies. “At this point, Vietnam relies on on-thejob training or retraining that is linked to specific projects,” says Vecchi. Renewables and fossil fuel subsidy Any discussions on increasing funding for renewable energy initiatives will of course involve one of the biggest drains on government resources: Fossil fuel subsidies. Some analysts suggest that Vietnam’s success in developing a strong renewable energy hinges on a rapid dismantling of its fossil fuel subsidy regime. Vietnam has earned praise for its determination to become a green growth economy and renewables beacon in Asia, but there are concerns that the government’s strong resolve has met its match in fossil fuel subsidy reforms. The United Nations Development

COUNTRY REPORT 2: VIETNAM Programme says the government has been slow to implement reforms on its substantial, largely indirect, fossil fuel subsidies which reached US$3.45 billion in 2012. Fossil fuel fiscal reforms must be accelerated if the Vietnam government hopes to achieve the ambitious targets set in its Green Growth Strategy, says Pratibha Mehta, resident coordinator at United Nations in Vietnam. Subsidy reform is often largely limited to changes to domestic energy pricing systems, but reforms need to go beyond adjusting prices and include reforms to state-owned enterprises (SOEs), governance and regulation of energy markets. Mehta says there are currently no plans to break up the monopoly of SOEs in the energy sector, except in electricity. The majority of energy producers and distributors in Vietnam are SOEs and receive the bulk of fossil fuel subsidies in the form of price controls, provisions, loan guarantees, tax exemptions and lax enforcement of environmental regulations. “Progress in the implementation of legislation and regulation on SOE reform has been slow due to vested interests, the complexity of SOEs’ role within markets, and difficulty in tackling the scale of commercial and institutional issues existing within energy markets,” says Mehta. Rallying the public The government should address its inability to raise prices by informing households and businesses on the costs of subsidisation and the likely benefits of a comprehensive fossil fuel fiscal reform, including a carbon price, says Mehta. The government will likely need to launch a widespread information campaign to explain this complex, and often contentious, topic and gain support for reform measures. Mehta suggests that the government will likely make a better case for subsidy reform and the resulting increase in electricity prices by stressing the fiscal savings and efficiency those results from such a measure. Core messages could include how fiscal reform will enable energy producers to provide better, more reliable services. The current regime allows for chronic SOE inefficiency and wastefulness, which leads to poor energy service provision to consumers. It is also beneficial to communicate how the government can direct resources to more productive and useful ends like enhanced funding for key developmental programs,

including enhanced renewable energy initiatives, resulting in a more progressive and inclusive county. Subsidy reform will also entice more developers and investors to enter Vietnam’s renewables market. The low electricity tariffs in Vietnam makes it harder for higher-cost sources of energy such as renewables to be profitable, says Harris. “The price that the government is willing to pay for electricity from private power producers has been the single largest deterrent to the growth of private investment in power,” adds Nhut H M Nguyen, analyst at Russin & Vecchi. Limited government financing opens up more opportunities for the private sector to take on renewable energy projects, especially those involving high-potential sources like solar, wind, and biomass. Nguyen says private investors hoping to dip into the lucrative renewable market should pin their hopes on the creation of a new legal framework for public-private partnerships, where the government is a contractual counterparty only and not an equity holder, as this holds “considerable promise.” Tackling sustainability Aside from enhancing the operating and regulatory environment and making the public amenable to subsidy reform, the government must ensure the economic and environmental sustainability of their green growth vision, says Andrew Scott, analyst at Development Program. “Mitigation measures are needed to contain short-term negative impacts of higher energy prices, with a focus on poor and vulnerable households

“The potential for energy efficiency savings is between 15% and 30% of demand, and is highest, in proportional terms, in the residential sector.”

and businesses,” says Mehta. He suggests two options that would make Vietnam’s energy system more environmentally sustainable. First is to improve the efficiency of energy use. The second is switch to lower carbon energy sources, including increasing the proportion of energy from renewable sources. He estimates that the potential for energy efficiency savings is between 15% and 30% of demand, and is highest, in proportional terms, in the residential sector. These savings would reduce demand by up to 22,000 GWh a year by 2030, or equivalent to the output of 15 planned coal-powered stations and reduce carbon dioxide emissions by over 100 million tons a year. “To achieve these savings, regulation and changes in enterprise management practices will be necessary, together with investment by the private sector and SOEs.” Meanwhile, the potential for renewable electricity generation is estimated to be about 155,000 MW, seven times higher than the total installed capacity in 2010.

Renewable energy increases in Vietnam

Source: International Rivers

What price is the Vietnam government willing to pay? ASIAN POWER 19

Asian Power celebrates 10 rewarding years of recognizing the leaders in Asia’s power sector

he Oscars of the power industry is now on its 10th year. Asia’s power sector is poised for tremendous growth, and Asian Power set out once again to discover and recognize the leaders and innovators of the region’s booming power industry. Over a hundred executives and power industry heavyweights gathered for the tenth Asian Power Awards, held on September 11 at Shangri-la Hotel Kuala Lumpur. The Asian Power Awards 2014 recognized the most outstanding and innovative projects in 17 categories. This year’s winners were selected from a pool of 69 nominations. The projects came from 32 companies representing 13 countries across the globe. The nominations were screened by an esteemed panel of judges that included John Yeap, Partner, Head of Energy – Asia at Pinsent Masons; John Goss, Managing Director of Ceejay International Ltd; and Andrew Bedford, Global Function Leader of KBC Advanced Technology Pte Ltd. According to Asian Power publisher Tim Charlton, “It has been ten years since we first organized the Asian Power Awards, and we have witnessed tremendous growth in the region in the past decade. Tonight we are here to recognize the best achievements and projects as well as name the key players who bested others in a drive for efficiency and productivity in the Asian power sector.” Sarawak Energy CEO Datuk Torstein Dale Sjøtveit bagged the coveted CEO of the Year award for his outstanding work in one of Malaysia’s leading power firms. Appointed as CEO of Sarawak Energy in late 2009, Torstein has a vast experience of more than 30 years in various industries, including shipbuilding, oil and gas, petrochemicals and aluminum. “I am honoured to have been able to lead Sarawak Energy in this period of great transformation. We acknowledge that there is a lot more to be done and an even bigger responsibility that comes our way. This award is a much appreciated acknowledgement of our achievements so far and I’m sure it will drive us to greater heights,” he stated. These projects are leading the way in Asia’s drive for sustainability, reliability, and maximum efficiency. These projects are fuelling Asia’s sustained growth, and their benefits are invaluable to the people of this thriving region. The full list of winners as well as the snapshots from the glamorous awards night are available in the following pages: 20 ASIAN POWER

Solar Power Project of the Year • Gold - Pratapgarh Solar Power Project, ICML powered by Integrated Coal Mining Limited • SILVER - SACASOL BY BRONZEOAK PHILIPPINES, THOMASLLOYD AND OWL GROUP • Bronze - Solar Photovoltaic Commercial Rooftop Project powered by Thai Solar Energy Public Co., Ltd.

• Bronze - new coal ash materials for the coastal construction of Taichung Thermal Power Plant powered by Taiwan Power Company Transmission & Distribution Project of the Year • Gold - Chun Yat Street 132kV Substation powered by CLP Power Hong Kong Limited

Biomass Power Project of the Year

• Silver - Smart Digital Substation in Meralco, Philippines powered by Alstom Grid Pte Ltd

• Gold - Namjeju Bio-fuel Oil Power Plant powered by Korea Southern Power Company Limited

• Bronze - Da-An Extra High Voltage Substation Construction Projects powered by Taiwan Power CompanY

• Silver - Sang-am District Heating and Cooling Plant, Korea District Heating Corp powered by Emerson Process Management Asia Pacific Private Limited

Power Plant Upgrade of the Year

Wind Power Project of the Year • Gold – Jeneponto 1 powered by Indo Wind Power Holdings Pte. Ltd. Coal Power Project of the Year • Gold - 2 X 300 MW Thermal Power Project, Haldia, East Medinipur, West Bengal, India powered by Haldia Energy Limited’ • SILVER - NEW COAL ASH MATERIALS APPLIED TO CASTAL CONSTRUCTION OF TAICHUNG POWER PLANT POWERED BY TAIWAN POWER COMPANY • Bronze – Manjung 4, Malaysia powered by Victaulic Gas Power Project of the Year • Gold - District Heat Conversion of KOWEPO Seoinchon GTCC powered by Korea Western Power Co,. Ltd. • Silver - EGAT Chana 2 combined cycle power plant in Southern Thailand powered by Siemens

• Gold - Santa Rita and San Lorenzo plants - Successful performance of inspections and overhauls for six units within 15 months powered by Siemens • Silver - district heat conversion of KOWEPO Seoinchon GTCC powered by Korea Western Power Co. Ltd. • Bronze - China Nan Yang Yahekou Power Plant powered by Emerson Process Management Asia Pacific Private Limited

Smart Grid Project of the Year • Gold - completed nationwide deployment of deregulated energy services for commercial & industrial customers in Singapore powered by Singapore Power • Silver - Smart Digital Substation in Meralco, Philippines powered by Alstom Grid Pte Ltd. Information Technology Project of the Year • Gold - Outage Management System powered by reliance Infrastructure Limited • Silver - A Novel Visualization Technique for Rapidly Identifying Power System Islands and Boundaries powered by Taiwan Power Company Power Utility of the Year - Malaysia • Sarawak Energy Berhad Power Retailer of the Year - Singapore • Diamond Energy Supply Pte Ltd Power Utility of the Year - Thailand • Thai Solar Energy Public Co., Ltd. Power Utility of the Year - India

Innovative Power Technology of the Year

• Tata Power Delhi Distribution Ltd

• Gold - Smart Digital Substation in Meralco, Philippines powered by Alstom Grid Pte Ltd.

Independent Power Producer of the Year

• Silver - China Huadian Jiangsu Wang Ting Power Plant powered by Emerson Process Management Asia Pacific Private Limited • Bronze – Micro Hydel Units (3 x 15 Kw) to extract waste energy from Condenser Cooling Water return to River powered by Southern Generating Station, CESC Limited

• Gold - CGN Meiya Power Holdings Co., Ltd. • Silver - Thai Solar Energy Public Co., Ltd. • Bronze - San Carlos Solar Energy (SaCaSol) CEO of the Year • Datuk Torstein Dale Sjøtveit

• Bronze - First Combined-Cycle Power Plant (“CCPP”) in Singapore Fully Fuelled by LNG powered by PacificLight Power Pte Ltd Fast-Track Power Plant of the Year • Gold - Kyaukse Power Project (Myanmar) powered by APR Energy • Silver – Andong Combined Cycle Plant in South Korea powered by kospo • BRONZE - MANJUNG 4, MALAYSIA POWERED BY VICTAULIC Environmental Upgrade of the Year • Gold - relocating an entirecombined cycle power plant by Korea Midland Power Co. Ltd. • Silver - retrofitting of electrostatic precipitator to hybrid electrostatic precipitator powered by Sesa Sterlite Limited ASIAN POWER 21

Bill Ho and Brian Sung of CGN Meiya Power Holdings

DoHee Won, YoungHyun Park, SangJin Lee and WanHo Park of Emerson Process Management

Chin Fei Chow and Arshad Mohidin Gani of Alstom Grid

Kang Won Jung and Byeong Gab Park of KOSPO

Kim Nam Ho and Jae Young Shim of KOWEPO

Kang Won Jung of KOSPO

Ho Tae Lee of KOMIPO

Tony Segadelli of OWL Group, Michael Airey of Thomas Lloyd and Jose Maria Zabaleta of Conergy Asia & ME Pte. Ltd.

Datuk Torstein Dale SjĂ¸tveit of Sarawak Energy

Clive Turton of APR Energy

Pol Kongsue and Suntorn Punmake of EGAT

Lawrence Lee of Singapore Power

Yunpeng Shao, Dezhong Yu & Chinhai Tan of Emerson Process Management 22 ASIAN POWER

Stefan Schaab of Siemens

Thomas Bierdel and Thomas Hagedorn of Siemens

S. P. Tang and Henry Chan of CLP Power Hong Kong Limited

Rabi Chowdhury and Sudipta Mukherji of Haldia Energy Limited

Michael Airey of Thomas Lloyd , Tony Segadelli of OWL Group and Jose Maria Zabaleta of Conergy Asia & ME Pte. Ltd.

Lawrence Kwan of Diamon Denergy

Jose Maria Zabaleta of Conergy Asia & ME Pte. Ltd.

Tat Ming Yu of PacificLight Power

Sudip Ghosh of Integrated Coal Mining Limited

Amit Sengupta and Sudipta Kumar Laha of CESC Limited

Chang, Mu-Chun of Taiwan Power Company

Chinhai Tan of Emerson Process Management

Bharat Kumar Bhadawat, Mahender Kumar Singhal and Shiv Ram Bhardwaj of Tata Power Delhi Distribution Ltd

Alfred Chua of Victaulic

Ho Tae Lee of KOMIPO

Datuk Torstein Dale Sjøtveit of Sarawak Energy

CEO of the Year, Datuk Torstein Dale Sjøtveit of Sarawak Energy ASIAN POWER 23

Jose Maria Zabaleta of Conergy Asia & ME Pte. Ltd. and CGN Meiya Power Holdings Co., Ltd Team Michael Airey of ThomasLloyd CTI Asia Holdings Pte Ltd

Siemens Team

KOWEPO Team