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A S I A’ S L E A D I N G P O W E R R E P O R T


Asia’s Green Commitment







Editors Note Welcome to another great edition of Pimagazine Asia. It has been a great year for the power and energy markets throughout Asia, we have some great interviews, articles and features in this edition, which I am sure, will keep entertained!

I hope that you enjoy this edition; again we have provided something for everyone. We look forward to your thought, views and comments. Thanks for reading.

Charles Fox, Editor

I’m sure we are all looking forward to the Christmas break and New Year festivities, so with that, I wish you all a very merry Christmas and prosperous New Year.

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Japan An efficient future


News The latest headlines


Hydro Politics In South Asia


Upcoming Events


Regional Cooperation Asia’s Transmission Grid


Cummins Prime Power


Japanese Fuel Cells Domestic Market


Industrializing Asia The Power generation market


Asia Desalination Opportunities


Laos Hydro Power Project


Interviews & Opinions 22

Enerproject Interview With Vito Notari


SBSS Interview With Tom Manning


Sun Edison brings Microgrid projects to India Global solar technology manufacturer SunEdison Monday said it has entered into an agreement with OMC Power to develop 5,000 rural electrical projects across India in the coming three to five years involving a total 250 MW of electricity. According to the US based company, the partnership leverages the expertise of both the companies including technical know-how, local and telecom knowledge from OMC and project development and financing expertise from SunEdison.


News from around Asia

Pakistan works to fix shortfall Pakistan has pledged to quickly end a shortfall in electricity output that has crippled businesses and households even in affluent areas of the capital and stoked a public backlash against the government of Prime Minister Nawaz Sharif who rode to office in May 2013 on pledges to fix the problem. Pakistan faces a shortfall of around 30% of demand of 20,000 megawatts (MW) with output now around 14,000 MW. Sharif recently flew to Beijing to seek China’s assistance for a series of dams and other projects, including nuclear power, to cover the shortfall. But observers note such projects take several years and often run into political opposition if resettlement or environmental issues are raised.


Here is a brief summary of the most recent big stories from in and around Asia. Please ensure you are a regular subscriber to our weekly newsletter to stay ahead of breaking news from the region. Keep up to date by following us on Twitter @pimagazineasia

Philippines NABA project to start Energy Regulatory Commission has allowed PetroWind Energy Inc. to start operating the first eight wind turbines of the 50-megawatt Nabas wind power project in Aklan province in January. ERC said it approved the commissioning tests for the first eight wind turbines, as a part of phase 1 of the project for two months from Jan. 17 to March 17, 2015. The approval would bring the 50-MW Nabas wind power project closer to commercial operation.

Korean Nuclear plants Safe! Control systems at South Korean nuclear plants have not been harmed by recent attacks by hackers, but nevertheless Korea Hydro and Nuclear Power is increasing its security efforts to defend against a possible additional attack, the company’s CEO Cho Seok told legislators. An investigation had found traces of a low-risk worm that had been removed from PCs and portable devices connected to the nuclear plant’s control system, but no malicious code linked to a cyber attack was found, according to the country’s Energy Ministry.


News Desk


Thailand Yingli Green in Thai MOU A unit of Yingli Green Energy Holding Company Limited, Yingli Green Energy Singapore Company Pte. Limited, plans to install solar farms in Thailand in partnership with Huawei Technologies Co., Ltd., Kasikornbank Public Plc. and Solventia Solar Energy Co., Ltd. The companies have already inked a Memorandum of Understanding (MoU) related to the latest venture. Per the MoU, the companies will offer turnkey solar power solutions for the power plants and distributed generation projects across the nation.

Singapore Jurong Island for Smart test bed! The upcoming Jurong Lake District is set to become the most futuristic part of Singapore in the years to come, as the Government has designated the district as a test bed for Smart Nation projects. The district is where more than 20 companies, including some tech giants, are testing out their innovations on a greater scale than ever before in Singapore. One of the companies involved is local energy startup Green Koncepts. It has an energy management system in place which helps to optimise energy usage in the area.

South Korea Alstom in South Korea wind project Alstom has been awarded a contract by DaeMyoung Energy Corporation, subsidiary company of DaeMyoung GEC, a large engineering and construction services company in South Korea to provide wind turbines for Gowon wind farm. The wind farm is located in Gangwon province approximately 170km east of Seoul. Alstom will supply and supervise the installation and commissioning of 6 units of the ECO 110 Wind Turbines with 90m towers, each with an output of 3MW. When operational, the wind farm will have a capacity of 18MW.



An efficient future for JApAn The Great East Japan Earthquake, the tsunami and the subsequent nuclear power plant accident in Fukushima on 11 March 2011 changed Japan’s energy future drastically. The revised Strategic Energy Plan, which the Japanese Cabinet approved in April 2014, outlines a new conceptual framework for Japan’s energy policy. The basic framework of the Strategic Energy Plan encompasses more than earlier plans, as it has expanded the ‘3Es’ — energy security, environment and economic efficiency — to include safety: ‘3Es plus S’. It is a great pity that ‘S’ needed to be added to the plan’s primary goals, because safety had always been regarded as a basic premise. But the Fukushima disaster reminded Japan that it is necessary to prioritise safety actively to prevent serious accidents that could cause casualties.


Efficient Future Policy pillars of diversification and resilience support the new emphasis on ‘3Es plus S’. The plan stresses the need to diversify energy resources. The previous Strategic Energy Plan, drawn up in 2010, attempted to increase Japan’s dependence on nuclear energy and renewable energy to up to 50 and 20 per cent, respectively, of total power sources. The plan now seems to minimize dependence on nuclear energy while maximizing dependence on renewables. Regrettably, it does not specify numerical goals, which may hopefully be determined in the very near future. The plan does provide qualitative goals, which indicate that nuclear energy, will be an important base load power source in the future. The plan also emphasizes the importance of developing a resilient energy supply structure. This will include enhanced cooperation in expanding relations with oil-producing countries as well as East Asian countries. It is important to create a more open and competitive business environment, permitting newcomers to enter the electricity and gas markets. This change envisages a complete liberalization of the power market, including spreading region-wide grid management across nine power companies, liberalizing retail markets and unbundling transmission from power generation. The Strategic Energy Plan seeks to realize a super energy-efficient society by accelerating energy-saving activities, particularly in the household and commercial sectors where energy consumption has continued to increase.


Efficient Future


Japan is aiming to improve its self-sufficiency and address climate change, which were already important policies before the 3/11 accident. Self-sufficiency is to be improved by speeding up the commercialization of unconventional domestic energy sources such as methane hydrate. Addressing climate change requires accelerating technological innovation through initiatives, such as the newly established Innovation for Cool Earth Forum (ICEF). ICEF will invite many world experts representing research institutions, industries and governments to participate.


There remain several challenges that need to be dealt with before Japan can finalize the design of its energy policy to achieve ‘3Es plus S’.


First, nuclear power reactors should be restarted one after another, once safety inspections have been completed. Since the 3/11 accident Japan’s nuclear safety regulatory scheme has been fundamentally reorganized and improved. The most important change has been the establishment of an independent regulatory commission in September 2012. In July 2013 this commission announced world-class safety standards. And 19 out of the existing 50 reactors have undergone inspections to date.(as of July 15)


The review process took much longer than originally anticipated (around one year) but finally inspections for two reactors in Kyushu were completed on 16 July. Actually restarting those two reactors may require an additional three months in order to respond to public comments and receive final approval from the local community. Inspections for the remaining 17 reactors should reach completion soon. The Institute of Energy Economics, Japan, recently published an analysis of the impact of restarting nuclear power stations on the Japanese economy. According to this analysis the most optimistic case would be that 32 reactors are

“The import cost of fossil fuels would be reduced by about US$20 billion and carbon dioxide emissions would decrease by about 6.5 per cent. Japan’s self-sufficiency ratio would increase by 7 per cent”.

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Feature -Japan

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restarted by the end of March 2016. In that scenario, the cost of power generation could drop by 2.3 yen (US$0.02) per kilowatt hour, a reduction of about 15 per cent of power tariffs for large users. The import cost of fossil fuels would be reduced by about US$20 billion and carbon dioxide emissions would decrease by about 6.5 per cent. Japan’s self-sufficiency ratio would increase by 7 per cent. Another interesting outcome of this scenario would be a substantial reduction of liquefied natural gas (LNG) imports (by about 14 million tons) while imports of unconventional LNG could increase to 17 million tons per year after 2017. The return of nuclear reactors combined with the arrival of unconventional LNG would substantially ease the supply and demand situation in Asia. The second challenge is to obtain the urgently needed numerical goals for the 2030 energy mix. The new Strategic Energy Plan states these goals should be determined as soon as possible so that the appropriate investments can be made. But it might be difficult for the Abe administration to make a decision before March, due to the lack of clear information regarding the restarting of nuclear reactors, the penetration of renewable energy introduced through feed-in-tariffs and the outcomes of international negotiations on climate change mitigation. At the Advisory Committee for Natural Resources and Energy, three scenarios regarding the share of nuclear energy in the total power source composition have been discussed: zero, 15 per cent and 20–25 per cent. As a member of this Council, I have been advocating for the 20–25 per cent case — diversification is key. Fossil fuels raise issues about energy security and climate change, renewable energy raises issues about cost and dependence on weather conditions and nuclear energy certainly raises safety concerns even if world-class regulatory systems are in place. No energy is perfect in light of ‘3Es plus S’. The more diversified the energy sector is, the better it is for the economy. The details of the new Strategic Energy Plan need to be scrutinized to determine the potential for effective electricity and gas market reform. This is easier said than done. There are still many problems with market reform in the UK, the US and other advanced economies. The typical problems associated with relying on market mechanisms are a shortage of investment and an inappropriate energy mix — particularly with respect to addressing Japan’s carbon emissions. The challenges of safely using nuclear energy, accomplishing an appropriate energy mix and wisely designing utility market reform are common to all countries in the world. I hope that Japan can work towards the best model through ongoing experiments in energy supply and use. Masakazu Toyoda is the CEO and Chairman of the Institute of Energy Economics, Japan. 12 | POWER INSIDER VOLUME 4 ISSUE 6

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Hydro Politics iN soUtH AsiA

Hydro Politics GMR officials in Delhi are most excited by another river, the Upper Karnali in west Nepal, which is due to get a 900MW plant. In September the firm and Nepal’s government agreed to build it for $1.4 billion, the biggest private investment Nepal has seen. Relations between India and Nepal are improving. Narendra Modi helped in August as the first Indian prime minister in 17 years to bother with a bilateral visit. Urged by him, the countries also agreed in September to regulate power-trade over the border, which is crucial if commercial and other lenders are to fund a hydropower boom. Mr Modi was back in Kathmandu for a summit of the South Asian Association for Regional Co-operation, on November 26th and 27th. Governments think the normally rudderless body could find a purpose in energy integration—though the talks were poisoned by poor relations between Pakistan and India. Another big Indian hydro firm agreed with Nepal’s government, on November 25th, to build a 900MW hydro scheme, in east Nepal, known as Arun 3. Research done for Britain’s Department for International Development suggests four big hydro

PI magazine takes a look into the politics involved with Hydro Power in South Asia


a thrill trekking beside the upper Marsyangdi river in northern Nepal. On view are spectacular waterfalls and cliffs, snowy Himalayan peaks, exotic birds and butterflies. But just where tourists and villagers delight in nature, hydropower engineers and economists have long been frustrated; in such torrents they see an opportunity that for too long has been allowed to drain away. Himalayan Rivers, fed by glacial melt water and monsoon rain, offer an immense resource. They could spin turbines to light up swathes of energy-starved South Asia. Exports of electricity and power for Nepal’s own homes and factories could invigorate the dirt-poor economy. National income per person in Nepal was just $692 last year, below half the level for South Asia as a whole. Walk uphill for a few hours with staff from GMR, an Indian firm that builds and runs hydropower stations, and the river’s potential becomes clear. An engineer points to grey gneiss and impossibly steep cliffs, describing plans for an 11.2km (7-mile) tunnel, 6 meters wide, to be blasted through the mountain. The river will flow through it, before tumbling 627 meters down a steel-lined pipe. The resulting jet—210 cubic meters of water each second—will run turbines that at their peak will generate 600MW of electricity. The project would take five years and cost $1.2 billion. It could run for over a century—and produce nearly as much as all Nepal’s installed hydropower. Trek on and more hydro plants, micro to mighty, appear on the Marsyangdi. Downstream, China’s Sinohydro is building a 50MW plant; blasting its own 5km-long tunnel to channel water to drive it. Nearby is a new German-built one. Upstream, rival Indian firms plan more. They expect to share a transmission line to ill-lit cities in India.

“The project would take five years and cost $1.2 billion. It could run for over a century—and produce nearly as much as all Nepal’s installed hydropower”.


projects could earn Nepal a total of $17 billion in the next 30 years—not bad considering its GDP last year was a mere $19 billion. All Nepal’s rivers, if tapped, could feasibly produce about 40GW of clean energy—a sixth of India’s total installed capacity today. Add the rivers of Pakistan, Bhutan and north India (see map) and the total trebles. Bhutan has made progress: 3GW of hydro plants are to be built to produce electricity exports. The three already generating produce 1GW out of a total of 1.5GW from hydro. These rely on Indian loans, expertise and labor.


Feature - Hydro Politics Why a Himalayan cross-border hydropower rush now?

In Nepal projects were once scuppered by local politics, a ten-year civil war, suspicion of India and a lack of regulation that put off creditors. Slowly, such problems are being tackled. The war ended in 2006. It helps, too, that the terms of the projects look generous to the host. For Upper Karnali, GMR will set aside 12% of electricity production, free, for Nepali consumers. It will also give Nepal a 27% stake in the venture. After 25 years of operation the plant will be handed to Nepal. A second reason, says Raghuveer Sharma of the International Finance Corporation (part of the World Bank), was radical change that opened India’s domestic power market a decade ago. Big private firms now generate and trade electricity there and look abroad for projects. India’s government also presses for energy connections over borders, partly for the sake of diplomacy. There has even been talk of exporting 1GW to Lahore, in Pakistan—but fraught relations between the two countries make that a distant dream.

A new power standard has arrived...

An official in India’s power ministry says South Asia will have to triple its energy production over the next 20 years. Integrating power grids and letting firms trade electricity

“The resulting jet—210 cubic meters of water each second—will run turbines that at their peak will generate 600MW of electricity”. internationally would be a big help. It would expand market opportunities and allow more varied use of energy sources to help meet differing peak demand. Nepal could export to India in summer, for example, to run fans and air conditioners. India would export energy back uphill in winter when Nepali rivers dry and turbines stop spinning. Governments that learn to handle energy investments by the billion might manage to attract other industries, too. Nepal’s abundant limestone, for example, would tempt cement producers once power supplies are sufficient. In the mountains, it is not only treks that are rewarding.

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Asia’s Transmission Grid

Regional CoopeRation foR asia’s tRansmission gRid On the 1st of November 2014, Bangladesh suffered an electricity blackout that lasted 10 hours, making it one of the worst power failures in the country’s history. Although the current government has made significant improvements in the generation of electricity in recent years, which has increased from 4,130 MW in 2007 to 8,525 MW in 2013, this was the fourth blackout and load shedding is still a reality with electricity shortages of up to 1000 MW in the peak summer season. However, the blackout in November is particularly significant due to initial reports stating that the source of the power outage was a glitch in the 500 MW India-Bangladesh electricity transmission line between Bheramara and Baharampur, which subsequently had a cascading effect on the entire system causing all power plants to shut down. Although the exact cause of the blackout is still being investigated, most reports suggest that some technical issues regarding the bilateral transmission line had exposed severe vulnerabilities in Bangladesh’s power system. A significant issue that has not been adequately highlighted by the media and most analysts is that this blackout has implications for regional cooperation on energy in South Asia in general and between Bangladesh, India, Bhutan and Nepal in particular, as poor energy infrastructure is an issue that affects all countries in the region.

Therefore, as government officials and analysts in Bangladesh reiterate the importance of upgrading infrastructure in response to the blackout, the policymakers of all South Asian countries should recognize the fact that the undertaking of regional energy cooperation implies that each country will have a vested interest in the energy infrastructure of the neighboring state, as interdependence on energy will essentially mean dependence on the partner country’s’ infrastructure. It is with this understanding that the countries of the region should emphasize on a collective approach to the development of domestic and cross border energy infrastructure.

Regional Cooperation on Energy Infrastructure

In addition to political and security issues, one of the key impediments to regional energy cooperation that has been highlighted by the power outage in Bangladesh is the lack of adequate energy infrastructure in all eight countries of South Asia. According to the International Energy Agency, by 2035, India’s electricity sector will need 1.8 trillion in investment, of which 42% has to be dedicated to transmission and distribution.5 Bangladesh, Nepal and Bhutan all have varying levels of vulnerabilities in their energy infrastructure, with investment of 6 billion, 1.2 billion and 3.3 billion required to enable these countries to undertake cross border energy cooperation. Lack of infrastructure as well as the inadequacy of current systems as impediments to regional energy cooperation have been highlighted by a number of academics such as Ebinger (2011)7 , Lama (2000; 2007)8 , Pandian (2002)9 , Lahiri-Dutt (2006)10 , and also in studies by international institutions such as the WB (2008), ADB (2013) and SAARC (2010). To overcome this issue, a SAARC Energy Trade Study has recommended cooperation among member countries to optimize investments for infrastructure development. The development of energy infrastructure is inherently linked to the success of multilateral energy projects. This reality requires the joint development of electricity transmission lines, transformers, technology and most importantly, a technically and operationally capable manpower. Although there has been progress in the field of technical capacity building and advocacy on the need to harmonize markets, policies and legislation, particularly through the work of projects such as the South Asian Regional Initiative for Energy Integration (SARI/EI), there is still not a recognition, at the policy and academic level, of the vested interest that each country has in the development of the energy infrastructure of its neighbor’s. This of course, is quite understandable, given the conflict-prone nature of the subcontinent and the inward-looking, nationalistic policies that have dominated for decades. However, as the countries of the region slowly overcome the myopia of bilateralism to take the difficult but necessary path towards multilateral energy cooperation, there needs to be an appreciation, at the highest political level, to draw out a plan for the collective development of energy infrastructure and manpower in South Asia. As the vision of the SAARC Electricity Grid gradually takes shape, within the broad plan of creating an interdependent power pool, facilitated by a smart grid that reduces inefficiency and transmission and distribution losses, South



Feature - Asia’s Transmission Grid Asian nations must also collectively seek financial and technical assistance to upgrade domestic infrastructure. The Asian Development Bank, the World Bank and the United States Agency for International Development have all undertaken projects to enhance energy security in individual counties in South Asia and have also assisted in facilitating bilateral cooperation. One issue that may compliment this process is open communication between India, Bangladesh, Nepal and Bhutan about projects that they feel is important in facilitating multilateral cooperation and ensuring that domestic donor-financed projects in individual countries are technically and operationally interlinked to the broader goal of regional energy cooperation. Regional collaboration on developing domestic infrastructure is therefore the key in ensuring that the interdependence brought about by transnational energy projects do not make counties vulnerable to disruptions but enhance the collective energy security of the region.

“According to the International Energy Agency, by 2035, India’s electricity sector will need 1.8 trillion in investment, of which 42% has to be dedicated to transmission and distribution”. Conclusion

Despite the negative impact on businesses and individuals, two recent political statements, one at the national and the other at the regional level have revealed the far sightedness of the political leadership in conceptualizing energy interdependence between South Asian countries. Firstly, the current government in Bangladesh has shown pragmatism in seeing the opportunity the power outage has provided to revaluate the adequacy of the country’s energy infrastructure to undertake cross border cooperation. This has been made apparent in a statement by Tawfiq-e-Elahi Chowdhury, the Prime Minister’s energy advisor: “It (the blackout) has come as a blessing in disguise for us, as it has created the scope to adopt preventive measures for any such future incidents, since we are going to take up many projects that would depend on cross-border connections.” Secondly, Piyush Goyal, India’s Minister of State with Independent Charge for Power Coal and Renewable Energy at the recently concluded SAARC Energy Ministers meeting stated “Rivers can flow only in one direction, but power can flow in the direction of our choice! I dream of a seamless SAARC power grid within the next few years. For example : Hydroelectric power generated in North East India could be transported via Bangladesh, India and Pakistan, on to Afghanistan or offshore wind projects could be set up in Sri Lanka’s coastal borders to power Pakistan or Nepal. The possibilities are limitless!” Within the achievable but difficult goal of a regional electricity grid and the realities propounded by a power blackout, India, Bangladesh, Nepal and Bhutan must come together to explore the means of upgrading domestic infrastructure, construct cross border transmission lines and develop human resources. A term that has become embedded in developmental discourse is the need to ‘act locally and think globally’. When it comes to the 1st of November 2014 power blackout in Bangladesh, one hopes that the repercussions on policymaking circles in South Asia would be that the leaders of the region can bring upon themselves the responsibility to act nationally as well as regionally.


Enerproject - Compressor Technology


leading the way in Compressor Technology An interesting interview with Vito Notari from Enerproject in Switzerland. Enerproject are a leading compressor packager based in Switzerland. Over the past years Enerproject have been steadily growing their presence throughout the World, and in particular Asia, where patience and a reliable local network are critical. Over the years, they have focused on proving their competence as a reliable and effective compressor packager supplying some 400 packages Worldwide, with 35 in operation throughout Asia, showing in turn the great confidence the market has on the product and of course its reputation. Enerprojects growth in Asia has been a great example of patience, building on references and a reliable

and dependable network. The brand has grown substantially in the region, with many people now recognizing the brand at the shows it visits. Vito Notari, head of sales said “It’s great for how far the company has come, and whilst many existing customers were present, we are making constant contact with lots of potential customers.

Vito was keen to talk about some of Enerprojects strengths as a European company doing successful business in Asia, “Every package that we produce is configured individually, allowing us to be extremely flexible in giving the best possible solution for the specifications, whereas other packagers do not have that kind of adaptability.” 22 | POWER INSIDER VOLUME 4 ISSUE 6

The requirement for reduced outage periods is another vital procurement consideration, with most users wanting just one scheduled outage a year after 8,000 hours. Many systems will not deliver this dictating the need for an additional standby compressor to maintain performance in accordance with turbine intervals, fortunately with the Enerproject system a synchronized maintenance interval with the turbine can easily be met. Vito stated that the “Enerproject skid concept is extremely compact ensuring a small footprint

The SPP projects have been a hallmark for Enerproject in Thailand, receiving a remarkable number of orders, 15 in the last two years, with packages including inlet gas scrubber, compressor in addition to filtration and drying systems at the discharge. The relationships and now subsequent references that Enerproject have developed with major contractors puts them in a very strong position moving forward, and whilst most of the work to date has come from Thailand, they have had contracts in Indonesia, Malaysia and also recently travelled to Taiwan to meet with a leading EPC.

dry low emission gas turbines and Vito told us of the desirable performance capabilities, with flexibility being the key word. “The major advantage of this technology is flexibility! Insomuch that our compressors packages are able to automatically follow the variations of the inlet and discharge conditions, and this enhance the flexibility of the product. Furthermore, screw technology, being axial compression, does not need a pulsations absorber of the gas flow, saving the user money and importantly space.”

required for modern power plants, it is almost a plug and play concept easily transported by roads, which is an important factor for some of the challenging project locations in Asia”. We were keen to understand the development path of the products being manufactured in Switzerland, discovering that one of the key advances incorporates a complete package in terms of compressor, gas treatment systems in addition to the analysis instrumentation. A recent project in Nigeria was testament to this where three compressors with the complete system were delivered for two GE LM6000 gas turbines,

“Enerprojects growth in Asia has been a great example of patience, building on references and a reliable and dependable network.”

a significantly large installation demonstrating the competence of the Enerproject solution. There are also a number of projects and references in this configuration for Enerproject in the Eastern european market. This again provides a distinct advantage over packagers that are typically limited to just the compressor. The organic growth the Enerproject has undertaken in Asia has been an admirable achievement. With an increasing number of small power plants coming rapidly online, their tailored compressor solutions and impressive deliveries to date will ensure an enviable standing in the market. Vito mentioned in closing “ We have some very exciting developments taking place that we are going to release in the near future, this will be sure to open up even more projects in Asia and around the World.” For more information on the Enerproject compressor solutions please contact their sales team +41 91857 5688 or

The modern compressor package has to meet a stringent set of specifications from the gas turbine manufacturer, which is becoming tighter on newer models to conform in emissions and efficiency. The importance of separating liquids and contaminants to deliver dry gas to the turbine is of paramount importance but with such vast experience, Enerproject fully understand and comply with the requirements. Vito continued “Enerproject are in constant communication with the turbine OEM’s, we have many references with them, understanding and configuring our packages for the requirements of each model.” Presently, Oil lubricated screw compressor’s are emerging as one of the most popular products for the FOLLOW US ON TWITTER: @PIMAGAZINEASIA WWW.PIMAGAZINE-ASIA.COM | 23


More Power. Less Cost.

Case History : Cloudbreak Mine Where : Pilbara region, Western Australia What : One QSK95 Series generator set, model C3500D5 Purpose : To provide dependable and reliable prime power for round-the-clock mining production. Additionally, the platform has to be robust and durable to operate in a harsh environment like Pilbara.

Remote site and challenging

Cloudbreak Mine is located in the Pilbara region of Western Australia. About 150km from the nearest power grid, the site is extremely remote and has one of the harshest environments known to man and machine. The terrain is not only dry and dusty, ambient temperatures can soar up to 50-degree Celsius (122-degree Fahrenheit) Responsible for the reliable provision of power to the Cloudbreak and Christmas Creek FMG sites, Contract Power Australia (CPA), a mining power supply and management specialist, was established in 1991 and is part of the Contract Power Group. CPA currently has numerous build, own and operate (BOO) power stations in the mining regions of Western Australia. “The Pilbara region is one of the harshest environments you can put a unit into. Temperatures here can go up to 50-degree Celsius. It is dusty, remote and has limited accessibility. The QSK95 Series generator set has worked brilliantly in this environment to date,” said Marc Grosser, General Manager – CPA.

Introducing the QSK95 Series of high-horsepower generator sets. What if you could achieve substantial gains in power output and reduce operating costs? With the QSK95 Series of generator sets, you can. Rated at up to 3,500 MW (3,750 kVA), these high-horsepower generator sets meet the most demanding prime power requirements and deliver best-in-class fuel economies — up to $400,000 in annual fuel savings based on 8,000 hours of yearly operation. Add extended service intervals, industry-leading time between overhauls and Cummins’ legendary reliability, and it’s like putting money in the bank.

Extensive testing, leaving nothing to chance

Cummins has committed major resources to the new QSK95 Series generator sets with millions of dollars invested in research and development as well as new manufacturing build and facilities to establish production lines and test cells. The QSK95 Series generator sets have been extensively tested to evaluate the performance of the engine, alternator and other critical components. Additional testing at Cummins’ Acoustical Test Center facility measures precise noise output to ensure minimal acoustic emissions.

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Feature - Prime Power QSK95 Series generator set: More power, performance and reliability

The QSK95 Series generator set is built around Cummins’ 16-cylinder QSK95 diesel engine which delivers power output comparable to that of 20-cylinder models from other vendors. “We have been very happy with the QSK95 Series generator set’s fuel efficiency. It is very impressive compared to other competitive offerings. This represents considerable savings for the mine at the end of the day.”

One unit of the QSK95 Series generator set (C3500D5) installed at Cloudbreak Mine delivers 3,125kVA of reliable prime power.

“Currently, the QSK95 Series generator set is the most powerful, high-speed unit that’s available to us. It delivered a more compact footprint per KW, which translates to lower construction costs for us, which we can pass on to the customer,” said Marc. Furthermore, the QSK95 Series generator set is equipped with many innovative engineering improvements such as larger and more accessible hand hole covers and an externally-mounted lube pump, enabling easier access to critical service functions. These features reinforce the enhanced serviceability incorporated into the generator set to minimize downtime to ensure reliability and uninterrupted mining operations.

Validated on-site performance and operational readiness Innovative design improvements such as an externally mounted lube pump enable ease of service and replacement.

The QSK95 Series (C3500D5) generator set is configured for a prime rating of 3,125kVA. Since commissioning, the QSK95 Series generator set has successfully completed

“Cummins has committed major resources to the new QSK95 Series generator sets with millions of dollars invested in research and development as well as new manufacturing build and facilities to establish production lines and test cells”.

over 4,000 run hours in continuous operation. It is a robust, sturdy unit. We’ve been very happy with its load acceptance, load rejection and stability. It’s hitting the maintenance milestones very well and is going to be a good unit,” said Marc.

Accountability and support from Cummins

Cummins field engineer, Ryan Hyslop was on site to support the commissioning of the unit, which was installed in just 2.5 weeks. “Due to the remoteness of the site, service and support are critical. Cummins has always been swift to respond when called upon,” said Marc. “The technicians were sent to the US for hands-on training on the new generator set. They have been a valuable resource not only in working on the unit, but also in providing feedback to the service and engineering team in the US,” said Ryan.

A resounding user testimonial

“Based on our experience with the QSK95 Series generator set to date, it will be our choice in our next construction build,” said Marc. “The QSK95 Series generator set is doing what we say it will do. It is meeting the expectation of our customer, Contract Power,” said Ryan. 26 | POWER INSIDER VOLUME 4 ISSUE 6


Industrializing Asia

IndustrIAlIzInG AsIA & the Power GenerAtIon mArket As everyone knows, Asia has been

rapidly industrializing since at least the year 2000. One of the limiting factors on this growth has been the availability of energy generation capability as the electrical power market has struggled to keep pace. To supplement the traditional energy sources from nuclear and coal, Asia Pacific countries are now increasingly adding renewable sources such as solar and wind.

As China goes, so goes Asia

The picture of the power generation market in Asia begins and ends with China. Lately, that picture has frequently been cloudy as seen in the many TV news stories portraying

the state of air quality in China with people wearing surgical masks as they are barely visible a block away, nearly obscured by thick, choking smog. “As coal power has been blamed as the major cause of the serious smog and haze problem in China, the environmental protection policies have exerted the most pressure ever upon the coal power generation companies,” says Dr. Neil Wang, global partner and China managing director for Frost & Sullivan. Unfortunately, polluting sources of electrical power led by coal-fired power plants will continue to have the lion’s share of the market in 2014, as according to Dr. Wang coal power will remain

(Picture above shows us what Asia looks like at night)


the most important power source in China with 78 percent of total power generation coming from coal-fired power plants. And considering how large the needs of the market are for power, it is very difficult to move the needle from traditional forms of energy generation such as coal-fired plants within the People’s Republic of China (PRC). “With economic growth automatically comes growth in electricity demand,” says Clive Turton, managing director, Asia Pacific, APR Energy. “If economic growth in the PRC, for example, is 8 percent per year, the growth in electricity demand could be as much as nine or 10 percent per year. PRC total electricity generation sources are around 1,200 gigawatts, meaning that every year the PRC needs to add as much as 120 gigawatts to keep up with demand growth.” He goes on to say it is not practical to count on alternative sources of power like solar or wind to make up the difference in the capacity growth needs of China. This is not to say that China has given up on alternative power. “Despite the overall dominant position of coal-fired electricity, the development of alternative power has continued to increase in significance,” says Gavin Chui, PwC

China Power & Utilities partner. “The Chinese government has committed to the global community that the country is on target to achieve 15 percent of its electricity from non-fossil sources by 2020.” Outside of China, power producers also have targets for alternative energy that they are committed to achieving.

Alternative power in the rest of Asia outside China

Outside of China, a lot of other Asian countries also have specific requirements for renewable, or alternative, power, according to Turton. “Power producers are more and more building alternative power as part of their generation mix,” he says. However, alternative power faces scalability and reliability issues, according to Turton. “On reliability, the simple problem is that if the sun is not shining or the wind is not blowing, solar and wind will not generate.” Therefore, there needs to be a backup source of power. Scalability is another issue altogether. For example, in India, only solar power has experienced a decline in the cost of production, according

to Amol Kotwal, associate director, Energy & Power Systems, South Asia, Frost & Sullivan. “We feel it is a long way to go for alternative power sources before it really catches up with traditional power sources”.

China (and India) syndrome

That brings us to the question of how does nuclear power fit into the overall power generation market

“If economic growth in the PRC, for example, is 8 percent per year, the growth in electricity demand could be as much as nine or 10 percent per year”. going forward in 2014 and beyond? With 21 operational reactors located at seven stations generating around 5 gigawatts, India is currently getting approximately 3 percent

of its total electrical capacity from nuclear, according to Kotwal. In addition, the Indian government intends to add another 4 gigawatts of capacity from reactors under construction, which are expected to come online between 2014 and 2016. It only goes up from there. “The central government is targeting 27 gigawatts by 2023, which is a huge leap,” says Kotwal. However, in spite of its nuclear power programs, India will struggle to meet its generation growth targets due to social and political unrest, according to Kotwal, citing the recent protests that occurred at the commissioning of the Kudankulam Nuclear Power Plant. And as ambitious as India’s nuclear plans sound, China has even more aggressive goals in mind. By the end of 2015, China’s current five-year plan for energy development calls for total nuclear generating capacity of 40 gigawatts, according to Wang. “And the government also means to develop China into a major exporter of nuclear technology,” he says.




FUEL CELLS FOR DOMESTIC MARKET PI Magazine take a look at how Japan are making Home fuel cells to improve energy efficiency Japan is working on doing for the hydrogen fuel cell what it accomplished with computer chips and cars in the last century, slashing costs to make them more appealing to consumers. As fuel-cell technology finds its way into factories and commercial buildings, Japanese manufacturers including Panasonic Corp. are working to make them small and cheap enough for the home. The country has set a goal of installing them in 5.3 million homes by 2030, about 10 percent of all households. With 100,000 already installed, residential fuel cells fit into Prime Minister Shinzo Abe’s vision of a “hydrogen society,” using the most abundant element in the universe as an alternative to nuclear power and fossil fuels. The systems produce electricity through a chemical reaction that also generates heat, which is captured to make hot water for homes. “Home fuel cells are one strong weapon to improve energy efficiency,” said Chihiro Tobe, head of a Ministry of Economy, Trade and Industry office promoting fuel cells. “The use of hydrogen can contribute to saving energy, tackling environmental issues and increasing energy security.” After shutting down its nuclear reactors following the 2011 Fukushima disaster, Japan is applying decades of experience in slashing manufacturing costs to become the first major market where residential fuel cells are taking hold. The systems, known generically in Japan as Ene-Farms, are about the size of a refrigerator and run on hydrogen extracted from city gas that’s delivered through existing pipes. Wider use of fuel cells promises to change the standard home-energy model by generating electricity close to where it’s consumed. That’s a shift from using giant generating plants, such as the Fukushima reactors that suffered meltdowns in March 2011 after a tsunami slammed into the facility.

An attendee walks past Aisin Seiki Co.’s “Ene Farm” household fuel cell cogeneration system at the Cutting-Edge IT & Electronics Comprehensive Exhibition in Chiba, Japan, on Oct. 7, 2014


One result is more efficient use of power that may reduce carbon dioxide emissions, helping Abe meet pledges in the global fight against climate change. Delegates from more than 190 nations, including Japan, are meeting in Lima for a United Nations conference on curbing global warming.

Proud to be here

“Hydrogen is the energy of the future,” the prime minister said in a Sept. 29 policy speech to the Diet.

Japanese Fuel Cells “We’ve deregulated rules involving various ministries that used to hinder hydrogen development. The hydrogen society used to be a dream, and now it is about to become reality.” Tokyo Gas Co. began selling home fuel cells for condominiums in April. The model is designed so the fuel cell unit, hot water unit and backup heat source can be stored in the pipe shaft of a typical apartment building. Large fuel cells are already powering factories and commercial buildings. FuelCell Energy Inc., based in Danbury, Connecticut, has installed systems at breweries, office buildings and data centers in the United States and Europe. Its largest shareholder, the South Korean steelmaker Posco, has licensed the technology and is building systems for the Asian market. Smaller fuel cells are powering telecommunications towers in remote locations, and Plug Power Inc. was the third-best performer on the Nasdaq Composite Index in the first quarter after announcing deals to supply fuel cell-powered electric forklifts to companies including Wal-Mart Stores. Ballard Power Systems, another fuel-cell supplier, was eighth. Meanwhile, Japan’s focus has been on residential fuel cells which have been available in the country for several years. The first systems were set up at the prime minister’s official residence in 2005, and after pilot projects, commercial sales began in 2009. Sales have been slow, in part because they are expensive. After more than five years on the market, the devices are installed in just 0.2 percent of Japanese households. One model sold by Tokyo Gas goes for about 2 million yen ($16,600).

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The New Energy and Industrial Technology Development Organization, which promotes research and development of new energy sources, said in a July report that the combined market for fuel-cell and hydrogen technology, including Ene-Farms and hydrogen-powered cars, may reach 1 trillion yen ($8.35 billion) a year by 2030, and 8 trillion yen by 2050.

“After shutting down its nuclear reactors following the 2011 Fukushima disaster, Japan is applying decades of experience in slashing manufacturing costs to become the first major market where residential fuel cells are taking hold”.

High costs, though, remain a problem, said Ali IzadiNajafabadi, an analyst at Bloomberg New Energy Finance in Tokyo. “The cost of the device needs to be significantly reduced,” he said. The systems also require additional equipment including battery storage units costing more than 600,000 yen for the systems to work in a blackout. Nevertheless, for a country like Japan where space constraints limit the number of solar panels that can be installed, apartments may prove an attractive market for fuel cells, said Masami Hihara, a trade ministry official. “But they need to be cheaper and smaller,” he said



ASIA’S DESALINATION OPPORTUNITIES... Over the last few decades, Asia has outperformed the rest of the world in its rate of economic growth. The region’s countries have made significant advances in alleviating poverty and improving living standards. As home to half the world’s people, this is a significant achievement. But the region’s emphasis on economic growth without equal attention to the environment has resulted in widespread environmental damage. The world’s largest continent is increasingly facing problems with regard to its water supply. Overuse, mismanagement, pollution, droughts: all are contributing to water shortages in this huge and massively diverse

Desalination Opportunities continent. From unparalleled droughts in Northern China to Arsenic pollution in Bangladesh, the need for potable water is becoming ever more apparent. Water pollution is pervasive, contaminating surface water and groundwater in urban and industrial areas. As the urban population in Asia grows, urban degradation is increasing. Industrial pollution is growing even more rapidly than economic growth. Desalination is one potential solution to the dilemma of how to avert escalation of these problems and provide a reliable source of water. Although currently the majority of projects across Asia are being constructed to provide mainly industrial end users with a reliable, clean water supply, the potential for the municipal market looks promising, largely thanks to: Falling prices, both in terms of plant cost and cost per cubic metre of water Improving technology - simpler and more reliable Growing confidence and understanding of desalination Improving relationships between equipment and plant manufacturers and local partners



Feature - Desalination Opportunities

Growth of the Asian desalination plant market is governed by a series of key drivers and restraints each of which exert a positive or negative push on the growth of the market. The main drivers include water shortages, tourist development and population growth. Restraining factors on the market include political instability, volatility of economies, lack of national awareness of economic viability of desalination schemes, and frequent lack of funds. However, the force exerted by the drivers is expected to outweigh that of the restraints and the Asian desalination plant market is certainly expected to grow over the forecast period. Looking at how the market has performed historically over the last decade the growth trend can plainly be seen. From an average value of $162.1 million over the period 1990-1994, the market grew to an average value of $392.6 million over the period 1995 to 1999. The market for desalination plants in Asia is expected to continue growing over the forecast period from an estimated value of $452.6 million in 2001. Indeed, the compound annual growth rate (CAGR) over the period 2001 to 2005 is estimated at around 11.0 percent, showing promising growth over this period. Towards 2010 however, increasing demand on freshwater resources for both industrial and municipal use will have pushed the Asian desalination market value through the $1 billion barrier, expecting to have a value of $1.029 billion. This indicates that the desalination plant market offers significant opportunities to companies participating in the

“Cummins has committed major resources to the new QSK95 Series generator sets with millions of dollars invested in research and development as well as new manufacturing build and facilities to establish production lines and test cells�.

market or those that can position themselves to enter or penetrate it in the near future. The yearly fluctuations highlight the effects that individual large projects can have on the market as a whole. In terms of competitive environment, the market currently contains around 90 to 100 companies, ranging from huge multinational turnkey plant suppliers to specialist small scale equipment manufacturers. The shares of top companies vary considerably from year to year depending on the winning of large scale plant orders. There are a vast number of factors and trends that have influenced the Frost & Sullivan forecasts for the Asian desalination plant market, although these vary geographically, by technology type and by end-user type, to name but three. However, in summary it can be said that Japan is probably the most influential regional market, simply because it is the largest and most developed. Market activity in the future forecast years are again expected to be fairly dynamic, although varying greatly from region to region, and indeed, nation to nation for that matter. This is because each region occupies a slightly different stage of the market life cycle, and the picture is further complicated because each is developing in slightly different ways and at differing rates.


In summary, the opportunities that exist for generating desalination plant revenues in Asia are massive, but it is still critical that companies address contemporary issues in a dynamic and innovative fashion if they are to position themselves to exploit future growth potential. With the total desalination plant market currently in the growth stage of its life cycle, it offers potentially great opportunities to companies that are active in, or entering this market. There are a number of key factors specific to this market that are characteristics identified within this analysis: Dominance of RO as the desalination process for both seawater and brackish water applications Industrial customers are currently the principal end users of this equipment, although municipal plants are likely to become increasingly widespread in future years. Plants such as the PUB plant in Singapore are leading the way in this respect. Increasing competition will undoubtedly result in restricted opportunities for price increases. Private finance initiatives look to be increasingly common to fund plant construction Those that fail to meet these challenges could find themselves being squeezed out of what is becoming an increasingly complicated and competitive marketplace.

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“From an average value of $162.1 million over the period 1990-1994, the market grew to an average value of $392.6 million over the period 1995 to 1999�.


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Interview - Tom Manning, SBSS

Interview INTERVIEW WITH: TOM MANNING, SBSS Tom Manning is Head of Business Development at SBSS, a Shanghai-based provider of innovative subsea cable solutions to the Asia market. He is responsible for identifying, developing and securing new subsea cable installation opportunities and other marine projects throughout the region, with a remit which covers all of the industries in which SBSS are active: Telecommunications, Oil & Gas, Power Utilities and Renewable Energy. Prior to joining SBSS Tom spent more than five years with their parent company in the UK, Global Marine Systems Limited, managing the operational and commercial deliverables associated with the cable maintenance agreements to which Global Marine were a supplier.

Welcome to this edition of Pimagazine Asia, can you tell us a bit about yourself and SBSS in Asia? SBSS is a joint venture between Global Marine Systems Limited and China Telecom. Operating out of Shanghai, 2015 will see us celebrate twenty years in business since our establishment in 1995 to provide integrated cable installation solutions to the Asia market. Initially formed to cater to the Telecoms cable industry, SBSS have continued to successfully leverage our fleet of specialist cable-laying vessels, engineering expertise, and project management capability into the more demanding and technically challenging environments of Oil & Gas and Power Utility, ever since our first successful foray into these markets in 2003. My own background is predominantly Telecoms maintenance-focused within the parent company Global Marine, but having recently joined SBSS as Head of Business Development I’ll be looking to grow our market share in the Oil & Gas and Power markets, whilst consolidating our core market of Telecoms where we see Asia remaining the strategic growth region in the global market.


What do you feel are the current challenges in the Asian cable laying market? We continue to see restrictive permitting regimes in operation throughout the region and this can have a big impact on the delivery and budget of a cable installation without careful project management. Another big challenge that Asia faces, more than any other region, is ensuring that the scale of potential development is supported by an adequate supply of specialist vessels, and by companies who have the necessary skill sets to deliver these large-scale projects.

The scale of development currently being proposed in the region is not necessarily being matched by the required levels of local expertise and resource which are going to be needed to deliver. At best this is likely to lead to a proportion of projects facing delays and cost overruns, more detrimentally it may lead to substandard practices becoming a greater risk to projects.

to promote the benefits of engineering due diligence at the front end of a cable installation project, ensuring a successful outcome for the developers. Cabling for the offshore energy market in Asia is growing quickly, what do companies need to consider from a selection perspective? I believe the key consideration for any company looking to contract for cable installation is to identify a supplier that can provide both the marine assets and the people that have the capability and experience necessary to deliver their project on-time, on-spec and on-budget. There is no substitute for specialist cable installation vessels when it comes to delivering an integrated, fully engineered and proven solution that is going to get it right first time. Whether the project is an inter-island HV connection, in-field platform connections, or turbine export cabling, experience has taught us that no two cable installation projects are alike, and that the margin for error throughout the project lifecycle is slender. This is why its so critical that the right people are involved, both at the front-end in designing and engineering a viable solution, and during delivery to manage the deployment in a safe, controlled manner.

With our strategic base in Shanghai, and long-term experience acquired both through the joint venture and our parent companies, SBSS are not only well-placed geographically to support this growth, but are also able

“Having recently joined SBSS as Head of Business Development I’ll be looking to grow our market share in the Oil & Gas and Power markets”.

What projects are you most proud of in Asia?

Anjwa Island and Hwawon Island in Korea.

SBSS have undertaken a number of repeat projects on behalf of COOEC in recent years. A variety of Power cable lays, platform hook-ups and cable crossing protection measures, including our highest number of cable sections deployed on one project: 17 interplatform sections on the KJO development in the Middle East. Each project has had its own unique obstacles to overcome and each has required us to demonstrate our engineering expertise in developing a solution. The fact that we’ve been asked repeatedly to take on the various work packages, I see as a ringing endorsement of our capability from one of the region’s key EPC players.

Running contrary to standard practice in the cable industry, SBSS engineered a solution using our installation vessel Fu Hai that allowed us to lay both 203mm cables simultaneously within the same trench for the entirety of the route, whilst applying uraduct cable protection. The solution called for great precision in monitoring the tension and touchdown of both cables concurrently, which was only possible due to the exceptional station-keeping attributes of our vessel and the detailed Front End Engineering and Design (FEED) work which our project teams undertook in collaboration with the customer.

As a standalone project in Asia that we’re particularly proud of, our dual installation of two 154kV Power cables on behalf of Haechun in Korea was one of our most technically challenging.

What technological advances are required on vessels to meet the ever changing demands of the energy market?

Whilst not within the Asia region, I’d also like to briefly mention here the recently completed installation and burial of two 30km 320kV XLPE Power cables in Venezuela on behalf of LS Cable, the Korean manufacturer. This was SBSS’s first project in Latin America and an important milestone in whose successful delivery we took great satisfaction. Tell us about some of the challenges faced and how you overcame them? The aforementioned Haechun project had a fairly unique requirement specified by the customer: they had a single trench in which to bury the two interconnector Power cables which they were due to have installed between

One of the trends we’re seeing is toward enabling HV cables to stretch ever further between landings, with one upshot of this being the need for greater capacity vessels. SBSS are well positioned in this area with both our DP2 installation vessels Fu Hai and Bold Maverick capable of carrying over 5,000Te of product. Hand-in-hand with this development is accommodating the greater bend radii inherent in these larger cables when handling them on-board the installation vessel and during deployment. This is when engineering expertise and cablehandling experience are invaluable in conceiving a valid deployment methodology within the typically tight mobilisation parameters of a project.



Interview - Tom Manning, SBSS

SINGAPORE INTERNATIONAL WATER WEEK “There is no substitute for specialist cable installation vessels when it comes to delivering an integrated, fully engineered and proven solution”. Away from vessel design, the industry also continues to advance in terms of cable burial capability. This is predominantly being driven by the current costs of maintenance for Power cables, itself a function of resource availability, particularly in the Asia market. SBSS recognised this trend three years ago when developing our class-leading Sea Lion III ROV which is capable of trenching products up to 200mm diameter down to three metres below the seabed. Along with our track record in concurrent installation and burial using our bespoke Hi-plough, I’d expect us to remain at the forefront of

this field as the demand for ever more powerful subsea vehicles continues. System downtime can be very costly to the end user, what contingencies do SBSS have in place to ensure maximum uptime for the end user in Asia? From my background managing maintenance accounts I know how critical minimising system downtime is, both for the cable asset operator and, ultimately, the end user. Initial route selection and installation are critical in preventing downtime in the first instance, and route diversification and redundancy are effective mitigations, but SBSS know from experience that the worst-case scenario does happen, and therefore appreciate the importance of efficient mobilisation and rapid repair vessel deployment. In the Telecoms market SBSS provide 365 coverage for cable systems throughout Asia. Under this agreement we’re able to get a fully equipped vessel en route to a repair within twenty-four hours of receiving the customer’s call. In addition, our in house cable jointing and ROV operating capability eliminates the need to consider multiple asset mobilisations, making for a more efficient, cost-effective maintenance solution.

Looking to the future, what technologies do you see being implemented to move the sector forward? In comparison to the mature maintenance market in Telecoms, O&M considerations for Power cables are in their infancy in the region with many operators looking at individual, bespoke solutions encompassing inspection, regular testing regimes and procedures for mobilising a vessel from the open market. Inevitably this introduces a greater lag in that all-important Time-to-Repair, and one of the critical developments the sector needs to consider as it develops is the implementation of integrated maintenance solutions to maximise system uptime. Ultimately I’d expect to see this involve operator collaboration and cooperation in securing dedicated marine assets, and an element of commonality being brought to the various aspects of cable repair: marine depot storage and spare cable, jointing technology, Time-to-Repair KPIs. Its one of the key market developments in which SBSS are well placed to leverage our hard-won experience in order to provide an innovative solution.

In 2014, we saw More than 20,000 delegates, exhibitors and trade visitors 544 Ministers and C-Suite Leaders 133 countries represented S$14.5 billion worth of business announcements made

Thank you for being a part of the 6th Singapore International Water Week. We look forward to welcoming you again in 2016.

Join us again on 10-14 July 2016






Hydro Power Project

Laos Hydro Power Project LAOTIAN hydropower company EDL-Generation plans to invest US$1 billion (Bt32 billion) between 2015 and 2020 to boost production capacity from 881 megawatts to 2,272MW.


To raise Bt6.5 billion of that, EDL-Gen will issue debentures in Thailand’s capital market next month. The debentures will have tenors of five to 10 years with interest rates of 5-5.5 per cent per annum, the company’s deputy managing director and chief financial officer, Dr Bounsalong Southidara, told a news conference last week.

The plan is to double annual revenue by 2020, he said. “We will be the first firm in Laos to issue debentures in Thailand’s capital market,” Bounsalong said. “We are also studying issuing debentures in Laos’ capital market and other countries in Asean such as Singapore and Malaysia, once the capital market opens up after the Asean Economic Community becomes effective in 2015.” Twin Pine Consulting managing director Adisorn Singhsacha, EDL-Gen’s financial adviser, said the debenture issue would be separated into two or three lots with tenors between five and 10 years. This will depend on market demand. EDL-Gen is a major private hydroelectric power generator in Laos. The company has total production capacity of 881MW,

of which 397MW is sold to Electricite du Laos (EDL), which in turn sells power to the Electricity Generating Authority of Thailand (Egat). EDL-Gen has registered capital of 4.9 trillion kip (Bt19.9 billion), 75 per cent held by EDL, 5.8 per cent by Ratch-Lao Services Co, and 4.31 per cent by RH International (Singapore) Corporation as of September 29. Ratch-Lao Services and RH International (Singapore) are subsidiaries of Ratchaburi Electricity Generating Holding. EDL-Gen recorded revenue of 1.32 trillion kip and net profit of 971.74 billion kip last year. In the first half of this year, it reported revenue of 502.41 billion kip and net profit of 326.98 billion kip. The company is one of three listed on the Lao Securities Exchange (LSX)

and accounts for about 80 per cent of the total market capitalization of the exchange. Bounsalong said that after issuing debentures worth Bt6.5 billion in Thailand’s capital market, the company’s debt-to-equity ratio would increase from

“EDL-Gen is one of the listed companies in the Lao Securities Exchange that has enough financial strength to raise capital in this region.”


Feature - Hydro Power Project

A section of the Theun-Hinboun Dam in Loas

“EDL-Gen recorded revenue of 1.32 trillion kip and net profit of 971.74 billion kip last year”.


0.2:1 to 0.4:1. This would leave room to issue debentures in other capital markets, including Thailand’s, to support its $1-billion 2015-20 investment plan. “If we issued debentures totaling $1 billion, our debt-to-equity ratio would still be lower than 2:1,” he said.

Once it gets that, the company will make a filing to Thailand’s Securities and Exchange Commission for its approval. EDL-Gen expects the process will be complete this month and it will be able to issue the debentures in December, Adisorn said.

Associate Prof Dethphouvang Moularat, chairman and CEO of the LSX, said this would be the first time a private Laotian firm has raised funds in Thailand’s capital market.

Earlier, Twin Pine Consulting appointed three banks as joint lead arrangers for the debenture issue. These are Standard Chartered Bank (Thai), Bank of Ayudhya and TMB.

“EDL-Gen is one of the listed companies in the Lao Securities Exchange that has enough financial strength to raise capital in this region,” he said. The debenture issue is awaiting approval from the Public Debt Management Office of the Thai Finance Ministry.


Upcoming Events For the Energy Business in Asia January 2015

March 2015

Biomarkets Asia

Smart Grid Technology

February 2015

9-11 March Yangon Burma

Project Scheduling, Risk analysis & cost control

FPSO Design & Technology Summit

26-29 January Jakarta Indonesia

10-13 March Singapore

Myanmar Power Summit

23-27 February Johannesburg S.Africa

10-13 March Singapore

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Power Insider Asia Vol 4 Issue 6  

Power Insider Asia, Asia's leading energy publication

Power Insider Asia Vol 4 Issue 6  

Power Insider Asia, Asia's leading energy publication