Power Insider Asia

PIINSIDER POWER

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

THAILAND & INDONESIA COUNTRY FOCUS

EXCLUSIVE INTERVIEWS • JK Mehta • World energy Council • Captain Ozone!

JANUARY/FEBRUARY 2011

FEATURES INSIDE INCLUDE: Biogas in Thailand, Solar Power, Regional News, Energy Poverty Alleviation, Natural Gas

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welcome Thailand and Indonesia are two very exciting and growing markets in asia.

27 spends time looking at developments taking This edition of Power Insider place.

Indonesia’s current power crisis began in 2008, and was caused by a number of factors, including logistical, financial and cultural issues, which affect power supply, investment, production and distribution.

Gas and biogas in and around Thailand, again are huge areas of opportunity for gas generation in asia.

ContaCt us: Editor: Charles Fox Creative Director: Colin Halliday Designer: Francesca Hammond Sales Director: Jacob Gold Business Development: Alec Piercy Account Manager: Sam Thomas Account Executive: Jordan Gardiner Accounts & Customer Service Manager: Katherine Godfrey Managing Director: Sean Stinchcombe sKs Global limited Kingswood House South Road Kingswood Bristol UK BS15 8JF e: info@sks-global.com w: www.pimagazine-asia.com w: www.sks-global.com t: +44 (0) 1179 606452 F: +44 (0) 1179 608126

SKS Global Power Insider Asia magazine is published quarterly and is distributed to senior decision makers throughout Asia and the Pacific.

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alleviating energy poverty is a very important aspect of globalisation and governments all over the region are dong many things to ensure targets are met and energy is implemented. we speak with JK mehta of the world energy council and discuss what is actually being done at grass root level in the region and what really needs to happen.

This edition also includes a special piece on existing opportunities, and contracts for tender in asia. we feel that adds more value to our readers and by using our insider links, we ensure that they are up to date and give you the opportunity to actually bid for these tenders. as the publication grows in circulation and readership, you will see some changes, but they are all for the better. we listen to our readers, and if there is ever a feature you want us to cover, drop us an email and we will get our journalists on it straight away.

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we look forward to hearing from you, enjoy this edition!

Charles Fox editor

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CONTENTS

INDONESIA

INDONESIA POWER CRISIS Nicholas Newman Reports

JAKARTA POWER PROBLEMS! Indonesia is facing a power crisis, largely of its own making; this will surprise many given that Indonesia is the world’s largest power station coal exporter, a significant natural gas producer and having immense renewable energy potential. Customers have suffered from frequent blackouts over the past few years, which have resulted in PLN the state utility asking its major industrial customers to shift their production activities away from peak times. This has resulted in no aspect of the economy being unaffected by the power crisis that faces this vast country of over 227 million people spread across 17,500 islands.

As a result, this dire power situation is forcing both business and domestic users to seek alternative solutions, such as in house generators and battery powered home appliances.

These failures by the power sector to provide sufficient capacity has raised concerns amongst the country’s leading economists, business leaders and have forced the government to admit there is a serious problem that is hindering the country’s economic development growth prospects. Such frequent power interruptions have proven damaging to the country’s economic growth, observes Nico van der Linden, Energy Economist at CASINDO programme ECN Policy Studies.

WHY INDONESIA’S POWER SECTOR IS IN CRISIS? Indonesia’s current power crisis began in 2008, and was caused by a number of factors, including logistical, financial and cultural issues, which affect power supply, investment, production and distribution.

A major factor is due to the impact the 1997 Asian Financial Crisis had on the Indonesian economy.

This resulted in the state owned power company PT PLN cancelling many of the planned power stations and other improvements to the power infrastructure, due for completion over the following decade. Nor was it helped that once the economy began to recover, due to a resource based export boom, that decision makers failed to take the appropriate action in the years between 2000 and 2005, suggests Peter McCawley Visiting Fellow, Indonesia Project at the Australian National University. Part of the reason for this period of indecision was due to a change in governing culture. The doctrine change from a belief that the state could solve all the problems that face the country’s power sector, to one of a realisation that the state needs to work in conjunction with the private sector , in order to tackle Indonesia’s power issues, suggests John Riady, Editor at Large at the Jakarta Globe.

However, the country’s transition from a net oil exporter to a net oil importer in 2004 has not helped.

This meant for state utility PLN, the country’s, many oil-burning inefficient aging power stations were no longer insulated from the vagaries of the world oil markets. This resulted in severe financial problems for PLN, which has run at a loss for many years. During the period 2003 to 2010, Nico van der Linden suggests that the government had set regulated electricity

tariffs below production costs. As a result, it became increasingly difficult for PLN to generate sufficient capital to reinvest in new power generation capacity.

A MATTER OF PRICE? However, since 2005, the country has experienced a growing export boom based on primary resources and manufacturing, which has resulted in an annual average economic growth of 6% per annum, and forecasters such as Business Monitor International, predict Indonesian power consumption will increase from 130 TWH today, to 170 TWH by 2014.

Currently, Indonesia’s power market demand consists of 35% from the industrial sector, residential 40% and the rest includes retail and commercial users.

At present, only 65% of the country’s population has some access to electricity, though the federal government in Jakarta has ambitious rural electrification plans for this to improve to 100% by 2025.For the federal government to achieve its goal of 100% electrification, many obstacles lie in the way of reaching such an ambitious target. For Indonesia, resolving the country’s power crisis is not just a simple issue of investing in a fleet of new power stations and other infrastructure. The solution is much more complex and requires further changes in market reforms and energy policy to reduce costs, improve productivity, competition and attract international investment.

The main obstacle is that of price. Indonesia’s energy policy has been based on the presumption that energy would always be plentiful and inexpensive. In fact, the country’s past cheap energy policies have encouraged a wasteful usage of power, which has contributed to the country’s power shortages. Using energy efficiently has never been regarded as a political priority. Hanan Nugroho, economist at the National Development Planning Agency has suggested that if energy efficiency measures were introduced, energy consumption could be reduced by a quarter without having an impact on economic growth.

Until 2009, it was costing PLN $11 cents per kWh to produce power, but PLN could only sell power at a government-regulated price of $6.5 cents per kWh. As a result, it was costing the federal government in Jakarta $6 billion per annum in subsidies to PLN. In June 2010, the government attempted to increase

electricity prices by 30%. However, due to intense lobbying led by the manufacturing sector, the federal parliament increased tariffs by 10% to 15%. This resulted in claims by business groups that actual costs had increased by 30% to 80%, though the 30 million low-income households were exempt from such increases. In October 2010, the federal government attempted to get parliamentary approval to increase 2011’s power prices by a further 5.4%. However, the federal government failed to obtain the necessary parliamentary approval. This is at a time when the government has slashed its electricity subsidy to PLN to $4 billion per year, leaving a hole in PLN’s finances, thus reducing its ability to provide improvements in power supplies. It would appear that the business lobby efforts to maintain current tariffs are working against their long-term interests to improve further their energy efficiency and competitiveness.

A MATTER OF POWER GENERATION? In 2009, Indonesia was estimated to have a total generating capacity by the IEA of some 31 GW, though many plants are due for retirement. However, actual operating capacity is thought to be under 24 GW. Today PLN controls around 85% of the country’s generating capacity. The reminder is operated by the private sector or other state owned agencies, which due to reforms introduced in 2009, are now allowed to compete against PLN. However, most are only likely to do so at a regional level.

Eighty per cent of Indonesia’s generating capacity is situated on the neighbouring islands of Java and Bali where the country’s major cities, including Jakarta are located. The Java-Bali grid has a generating capacity of 20,000 megawatts. PLN director of operations Ngurah Adnyana on the Java-Bali grid claims the company has a weekday capacity of 17,500 megawatts, with additional reserves of 2,000 megawatts, with demand for power climbing at 9% per annum. However, this is at a time when PLN has ambitions of having as an operating reserve margin of 30 %. Independent power providers such as PT Paiton Energy’s 1,350-megawatt coal power station, which is owned by a multinational conglomerate that includes Britain’s International Power PLC, provide additional power to the grid. Paiton energy is in

AT PRESENT, ONLY 65% OF THE COUNTRY’S POPULATION HAS SOME ACCESS TO ELECTRICITY, THOUGH THE FEDERAL GOVERNMENT IN JAKARTA HAS AMBITIOUS RURAL ELECTRIFICATION PLANS FOR THIS TO IMPROVE TO 100% BY 2025.

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Newsdesk

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Indonesia Power Crisis

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Enerproject Overview

16

Shell Case Study

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Energy Poverty Asia

22

Thailand and Natural Gas

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Thailand Overview

30

Biogas

34

Captain Ozone

40

Opportunities

42

Events

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POWER INSIDER JANUARY/ FEBRUARY 2011 13

ENERGY POVERTY ALLEVIATION Energy poverty has been the cause of concern and centre of discussions on various forums world-over for decades. Unfortunately, the number of people affected by energy poverty remained nearly static over these periods. Addressing the need of these two billion potential customers for energy access makes for impressive market. However, the challenge is that this market is made up of dispersed customers in difficult locations and with limited sources of income even though they may have abundance of natural resources. It has been observed that people living in poverty often pay a higher price per unit of energy services than do the rich. They also spend more time in obtaining these services and rely on resource scarce and polluting ways of converting energy for services like cooking, drinking water, heating and lighting.

All of which are associated with health impacts.

Talking of international funding in most cases with international aid is not the availability of funds but the capacity to use it. Most aid remains unspent and rarely goes to those who have the capacity to spend it.

Energy poverty has different meaning for different countries and societies. Generally energy poverty is defined using the following criteria: Percentage of income or total expenditure spent on obtaining energy services Although there is no universal benchmark if the household is required to spend around 25% of their income or expenditure for obtaining electricity, heating and water can be deemed as an acceptable threshold (a 10% threshold for the case of electricity can also be considered).

Energy poverty can also be calculated on the basis of engineering estimates to determine the direct energy required to satisfy the basic needs. This category has been used by number of authors (Revelle 1976, Bravo 1979, Krugman and Goldemberg 1983). The studies indicate that requirement of direct primary energy per unit to satisfy basic needs are about 500 watts per person.

However, this type of calculation assumes a number of elements such as equipment size, efficiency and energy intensity. The basic need can also vary with the climate, regions, age, season, etc.

Third yardstick for energy poverty as estimated

by UN estimates that the minimum need for energy services (lighting, cooking, heating, etc) corresponds to about 50 kgs of oil equivalent (Kgoe) of annual commercial energy per capita.

Energy Poverty Alleviation and Millennium Development Goals The energy availability and poverty are closely related to health issues, productivity, environment, gender issue and education. The issues and challenges and its impacts can be classified as under:

HOW TO TACKLE ENERGY POVERTY IN ASIA Presentation by J. K. Mehta, Regional Manager (WEC-South Asia)

HEALTH ISSUES Energy (calories) spent in rural areas in collection of fuel wood Ineffective methods of fuel wood collection which impact health.

Indoor pollution (smoke) due to inefficient stoves & improper fuel.

Non-Availability of fresh clean water for drinking Lack of electricity for lighting, heating, environment control & preservation of food/ medicines to improve hygiene and health:

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PRODUCTIVITY ISSUES With availability of kerosene, LPG and other efficient fuels, the time spent on fuel wood collection can be utilized for more productive activities which can improve income levels.

With availability of electricity for lighting, the effective working hours can be increased to produce more product & income.

More efficient & better technology equipments can also increase productivity & encourage cottage industry The reliance on biomass fuel results in reduced agricultural productivity by depriving the soil of recycled nutrients that would have been otherwise available from tree crop and animal residues..

ENVIRONMENT ISSUES Availability of better & efficient fuel would reduce the consumption of dung and biomass fuel which can be used for fertilizers & other agricultural purposes.

Control indoor pollution with better fuels and efficient stoves Availability of modern energy resources will reduce deforestation and their consequential impact Degradation of Environment seriously impacts the poor due to their inadequate resources for health and security Renewable energy from Solar, Wind, Microhydel etc. is sustainable & environment friendly GENDER ISSUES In most countries the major burden for collection of fuel wood is on women & children affecting their health & quality of life.

Indoor cooking is also done by women & with polluting fuel producing CO and CO2 and their health is at great risk.

In many countries the women folk are not involved in decision making process both at family level and village level. Thus their issues & problems are inadequately addressed.

EDUCATION ISSUES Families lacking adequate energy supplies tend to limit children’s time spent on school work and reading and families may withdraw children specially girls from school to spend time on fuel wood and dung collection.

With lack of education the rural poor are not able to appreciate the benefits of better fuel, better stoves & energy use. They use much higher discounts rates than do the rich when making decisions about energy carriers and think primarily in terms of the first cost rather than life cycle cost.

Are hesitant to leave traditional practices (even in some affluent families food/bread is cooked on biomass fuel due to misinformation/misconcepts/ traditional values) Education & Energy would provide knowledge about improved hygiene and health practices.

Poor school attendance due to respiratory illnesses There is an urgent need to address this issue of energy poverty but this has to be done while taking into cognizance: The economic considerations which make propoor business sense (or business at the bottom of the pyramid ) with targeted potential two billion POWER INSIDER JANUARY/FEBRUARY 2011 23

ThaiLand’s naTuraL Gas

Thailand and naTural Gas PTT Public Company Limited (PTT) is a major integrated energy and petrochemical company in Thailand, conducting its business as a national energy company and being listed on the Thai stock market. The major role of PTT is to ensure long-term energy securities of the country.

78 At present, thAilAnd is one of the top rAting Cng Countries in the world, the Cng priCe in thAilAnd is the sixth CheApest in the world.

TT Public Company Limited (PTT) is a major integrated energy and petrochemical company in Thailand, conducting its business as a national energy company and being listed on the Thai stock market.

The major role of PTT is to ensure long-term energy securities of the country.

Regarding to the country’s energy demand, Thailand is a net importer of crude oil with a consumption of 873,483 barrels per day, which is the majority (84%) of the total crude oil supply. The other 16% comes from domestic sourcing with the quantity of 165,763 barrels of crude oil per day. Despite being an oil importer, Thailand has indigenous natural gas supply with an abundant reserve. The

majority (80%) of natural gas comes from domestic supply. It mainly composes of 77% from the gulf of Thailand (3,521 MMSCFD). The other 4% comes from domestic onshore fields (160 MMSCFD) as known as Lankrabue field in Phisanulok province in the northern region and Phuhom field in Udornthani province in the northeastern region. The rest (19%) is imported from the fields in Myanmar (869MMSCFD).

In Thailand, natural gas is widely used in various sectors consisting of power plants, gas separation plants, industries and transportation at 69%, 17%, 10% and 4% respectively. PTT plays an important role in natural gas business from supplying, producing

26 January/February 2011 power insider

to distribution. The natural gas infrastructure, which requires high investment fund, is also run by PTT. increasing demand of natural gas Vehicles (ngV) The growth of NGVs in Thailand started from the after market’s converted NGVs of local CNG workshops by piloting a NGV project with five converted CNG buses with no prominent progress during 1984-1992. During 1993-2004, the oil prices were still cheap. Nevertheless, Thai government has supported to purchase almost 100 OEM dedicated CNG buses and launched the promotional programs for 10,000 converted taxis with the installation of 12

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CAPTAIN OZONE

BIOGAS

CAPTAIN OZONE I’M CAPTAIN OZONE. I MADE MY FIRST PUBLIC APPEARANCE AS A CAPED, CLEAN ENERGY CRUSADER ON MARCH 13, 1989. I STARTED ADVOCATING CLEAN ENERGY IN A SYNDICATED COMIC STRIP AND A ROCK MUSIC VIDEO TITLED “THE FLUSH” WHICH I STARRED IN.

BIOGAS

Biogas is a proven and widely used source of energy in Asia. There is now yet another wave of renewed interest in biogas due to the increasing concerns of climate change, indoor air pollution and increasing oil prices. Such concerns, particularly for climate change, open opportunities for the use of the Clean Development Mechanism (CDM) in the promotion of biogas.

WHAT IS BIOGAS? Biogas originates from bacteria during the process of bio-degradation of organic materials under anaerobic (without air) conditions. The natural generation of biogas is an important part of the biogeochemical carbon cycle. Methanogens (methane-producing bacteria) are the last link in the chain of microorganisms that degrade organic materials and return the decomposed products to the environment. It is in this step of the biogeothermal carbon cycle that biogas, a source of renewable energy, is generated.

BIOGAS AND THE GLOBAL CARBON CYCLE Each year, some 590-880 million tons of methane are released worldwide into the atmosphere through microbial activity. About 90 percent of the emitted methane derives from biogenic sources, i.e., from

By Sean Stinchcombe

34 JANUARY/ FEBRUARY 2011 POWER INSIDER

the decomposition of biomass. The remainder is of fossil origin (e.g., petrochemical processes). In the northern hemisphere, the present tropospheric methane concentration amounts to about 1.65 ppm.

BIOLOGY OF METHANOGENESIS Knowledge of the fundamental processes involved in methane fermentation is necessary for planning, building and operating biogas plants. Anaerobic fermentation involves the activities of three different bacterial communities. Biogas production also depends on certain specific conditions.

For example, changes in ambient temperature can have a negative effect on bacterial activity.

SUBSTRATE AND MATERIAL BALANCE OF BIOGAS PRODUCTION In general, all organic materials can ferment or be

digested. However, only homogenous and liquid substrates can be considered for simple biogas plants: faeces and urine from cattle, pigs and possibly poultry, as well as wastewater from toilets. When the plant is at capacity, the excrement is diluted with an equal quantity of liquid, such as urine if available.

Waste and wastewater from food-processing industries are only suitable for simple plants if they are homogenous and in liquid forms. The maximum gas-production from a given amount of raw material depends on the type of substrate.

COMPOSITION AND PROPERTIES OF BIOGAS Biogas is a mixture of gases mainly composed of: • Methane (CH4): 40-70 % by volume • Carbon dioxide (CO2): 30-60 % by volume • Other gases: 1-5 % by volume, including:

• Hydrogen (H2): 0-1 % by volume • Hydrogen sulfide (H2S): 0-3 % by volume • Similar to any pure gas, the properties of biogas are pressure- and temperature-dependent. They are also affected by the moisture content and other major factors such as: • Change in volume as a function of temperature and pressure • Change in calorific value as a function of temperature, pressure and water-vapor content • Change in water-vapor content as a function of temperature and pressure • The calorific power of biogas is about 6 kWh/m3 - this corresponds to about half a litre of diesel oil.

• The net calorific value depends on the efficiency of the burners or appliances. Methane is the most valuable component if the biogas is to be used as a fuel.

UTILIZATION The historical evidence of biogas utilization shows independent developments in various developing and industrialized countries. Normally, the biogas produced by a digester can be used as is, the same way as any other combustible gas. It is possible that further treatment or conditioning is necessary, for example, to reduce the hydrogen-sulfide content in the gas. When biogas is mixed with air at a ratio of 1:20 a highly explosive gas forms; therefore, leaking gas pipes in enclosed spaces poses a hazard.

BENEFITS OF BIOGAS TECHNOLOGY Well-functioning biogas systems can yield a range of benefits for users, the society and the environment in general: • Production of energy (heat, light, electricity); • Transformation of organic wastes into high-

quality fertiliser; • Improvement of hygienic conditions through reduction of pathogens, worm eggs and flies; • Reduction of workload, mainly for women, in firewood collection and cooking; • Positive environmental externalities through protection of soil, water, air and woody vegetation; • Economic benefits through energy and fertiliser substitution, additional income sources and increasing yields of animal husbandry and agriculture; • Other economic and eco-benefit through decentralized energy generation, import substitution and environmental protection.

• Biogas technology can substantially contribute to conservation and development, if the concrete conditions are favourable. However, the required high level of investment in capital and other

In the 1990’s I appeared in radio, television and movie theatre PSAs that touted the benefits of renewable energy. I also taught kids how to write, direct and star in their own renewable energy television PSAs through the Youth Ecology Program. To view these PSAs on streaming video, Google “Youth Ecology Program PSAs”.

I also organized a Green Power Rally in the United States and Canada on July 31, 2010.

My primary mission is to teach citizens how to be clean energy crusaders just like myself. Creating PSAs and getting them aired on commercial television can be rather costly, but there are many other fun things you can do for FREE to raise public awareness and support for solar, wind, geothermal and hydro power.

Here’s a list of 12 exciting things you can do that don’t take monumental effort which will have largescale impact: BE YOUR OWN TALK SHOW HOST 1) You can produce your own talk show on college radio that crusades for clean energy! Producing your own talk show on college radio is FREE and you can reach thousands of listeners. Radio listeners can call in on your talk show and share their views and comments about clean energy. Producing your own college radio show is fun and easy and some college radio stations allow non-students to produce shows.

2) You can produce your own TV talk show on public access television for FREE that’s in support of renewable energy! Your TV campaign for renewable energy can reach thousands of viewers and public access television offers free classes that teach you how to operate their television broadcast equipment. You can find volunteers through the television station’s classes who have equipment certification to help you produce your own TV talk show.

3) You can podcast your own radio or TV talk show promoting renewable energy on the Internet for FREE using your computer’s microphone or webcam! You can podcast from your own home and reach millions of listeners or viewers across the world.

THE KEYBOARD IS MIGHTIER THAN THE SWORD 4) Write articles that campaign for clean energy and publish them for FREE through independent media websites like Independent Media Center and RINF News.

5) Write letters that are in support of clean energy to the editors of your local newspapers and magazines.

6) Write a letter to your regional power company petitioning them to convert to renewables such as solar, wind, geothermal and hydro power.

7) Write letters to CEOs at oil and automobile companies petitioning them to invest in the research and development of zeroemissions energy.

BE HEARD IN THE BINARY HEAVENS 8) You can create your own MySpace or Facebook webpages that crusade for clean energy and reach thousands of citizens on the Internet! MySpace and Facebook allows you to upload photos and video to your webpages, and it’s all FREE. You can also purchase Internet domain names for as low as $10/year, then create your own websites that advocate renewable energy and have your sites hosted for as low as $25/year.

GREEN YOUR ART 9) If you’re a song writer, painter, film maker, or even a stand-up comedian, you can employ zero-emissions energy themes in your work.

INVEST IN GREEN POWER 10) Companies that manufacture renewable energy systems are growing just as fast as Microsoft did in the 80’s! You can buy stocks in companies that manufacture Green Power systems. Listed below is an example of a few fast growing companies that manufacture wind turbines, hydrogen fuel cells, solar cells and geothermal systems: Vestas is the largest company that manufactures, installs and maintains wind power turbines all over the world.

Ballard Power Systems, Inc. makes a variety of zero-emissions, hydrogen fuel cells for power generation, automotive, and material products.

SunPower Corp. makes high-efficiency photovoltaic cells and solar panels for residential, commercial and power plant applications.

WaterFurnace Renewable Energy, Inc. makes geothermal power systems for home and business use.

GIVE YOUR GREEN 11) You can give your tax-deductible donations to 501(c)(3) non-profit organizations that advocate renewable energy.

SPREAD THE WORD 12) Please copy this page and paste it into an email and forward it to your friends and family. Forwarding this can bring you good luck and some of your friends and family will have fun creating their own clean energy talk shows and websites.

LEARN ABOUT ZERO-EMISSIONS ENERGY SOURCES Before you start your own radio, TV or Internet talk show that advocates renewable energy sources, you must first learn the basics about solar, wind, geothermal and hydro power. A good place to learn about this is the United States Department of Energy’s website at eere.energy.gov.

‘MY PRIMARY MISSION IS TO TEACH CITIZENS HOW TO BE CLEAN ENERGY CRUSADERS JUST LIKE MYSELF.’ 40 JANUARY/FEBRUARY 2011 POWER INSIDER

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NEWS DESK

S.Korea pumps up support for renewable energy South Korea, the world’s No.5 crude importer and No.2 liquefied natural gas (LNG) buyer, will boost financial support for the new and renewable energy industry this year by nearly a quarter, the government said on Thursday.

The country has earmarked 1 trillion won ($891.2 million) in support, up from 808.4 billion won last year, for new and renewable energy projects and financing, such as support for building solar and wind power energy facilities, the Ministry of Knowledge Economy said in a statement.

South Korean President Lee Myung-bak said on Monday Asia’s fourthlargest economy, heavily dependent on energy imports, would strengthen its new and renewable energy sectors, expecting the sectors to achieve exports

of $40 billion in 2015 compared with $4.6 billion in 2009.

The investment includes 20 billion won to set up four or five test beds for solar and wind power generation.

One of the world’s fastest-growing carbon polluters, South Korea is seeking to shift from its dependence on fossil fuels by expanding investment in green resources.

In October last year, the South Korean government said it would spend 40 trillion won by 2015 in a combined push by the public and private sectors to boost renewable energy resources.

COMPANY NEWS FROM AROUND THE WORLD

JinkoSolar adds capacity

The Shanghai-based vertically integrated solar product manufacturer JinkoSolar Holding Co., Ltd has increased both its solar cell and solar module production capacity to about 600 megawatts (MW) a year.

The NYSE-listed company said that the expansion had been completed ahead of schedule to meet demand

for its products. JinkoSolar added that it has already secured solar module supply contracts totaling 546 MW for 2011.

Alstom wins hydro contract France ‘s Alstom has won a contract valued at Eur70 million ($10.5 million) for the supply of equipment to a hydroelectric dam. The contract was awarded to Alstom by the Da-

6 JANUARY/FEBRUARY 2011 POWER INSIDER

tang Guanyinyan Hydropower Development Co. Ltd. The project will involve the supply of three 600-megawatt (MW) Francis turbine generator units to the Guanyinyan hydroelectric power project on the Jinsha River in Yunnan province. The first unit is due to enter commercial operation in 2014.

Alstom noted that Guany-

inyan Hydropower Development is a subsidiary of the state-owned power generation holding group China Datang Corporation. Alstom added that it was the second contract it had secured from the company, following the 1,750- MW Pengshui hydroelectric project in 2004 for which Alstom supplied five 350-MW Francis turbine gen-

erator units. Hydroelectric plants account for 22% of total Chinese generation capacity. The stock of capacity is expanding by about 15,000 MW a year, with more than 110 hydropower projects currently at the planning stage for completion by 2020. Alstom has signed contracts for 45,000 MW of hydroelectric turbines and generators in

IndIa’s Lanco buys austraLIan coaL assets the australian subsidiary of the Indian power developer Lanco Infratech Limited has agreed to buy the coal mining operations of Australia’s Griffin Coal for about $750 million.

The coal will be used in part to fuel Lanco Infratech’s existing and planned coal-fired power plants. Lanco Resources Australia Pty Ltd is buying Griffin Energy Group Pty Ltd and Carpenter Mine Management Holdings Pty Ltd, both of which are in administration, in order to purchase 100% of the shares of Griffin Coal Mining Company Pty Ltd and Carpenter Mine Management Pty Ltd, which together form Griffin Coal.

Based at Collie in the state of Western Australia, Griffin Coal owns the largest operational thermal coal mine in the state. The mine produces more than four million metric tons per year of coal. It can be ramped up to more than 15 million mt/year in the near term in tandem with the development of transport infrastructure, Lanco said, adding that the mining tenements contain over 1.1 billion mt of thermal coal resources.

The sale does not include the Bluewaters-1 and Bluewaters-2 power plants in Western Australia.

These take about two of the three million mt/year supplied by Griffin to the Australian market, while up to 1.5 million mt/year is exported to China, Japan and India. Lanco noted that the mining operations are “strategically located on the western coast of Australia, hence closer to India compared to the mines in the New South Wales and Queensland areas of Australia.” It added that the mines are well connected to two ports through both rail and road, with the nearest port at Bunbury being 85 kilometers from the mine. Suresh Kumar, the chief financial officer of Lanco, said that “the acquisition of Griffin Coal is an important component of our development strategy, providing increased fuel security for our current power generation assets and future power portfolio expansions.”

He added that the “acquisition also presents an opportunity to Lanco to participate in the burgeoning natural resources trading market.” Lanco operates Indian power plants with 2,087 megawatts (MW) of overall capacity. The company is currently building almost 8,500 MW and developing 11,000 MW of capacity, although not all of the plant is coal-fired.

For instance on December 20 Lanco Infratech said that it had received letters of intent from NTPC Vidyut Vyapar Nigam Limited for the development of a 5-MW solar photovoltaic and a 100-MW solar

china, of which about 28,000 MW is already in operation. among the projects is the three Gorges dam, for which alstom supplied fourteen 700-MW sets.

Chubu delays MOX program

the chubu electric Power company has postponed the

thermal project in the state of Rajasthan. The projects were awarded under the first phase of the National Solar Mission. Lanco Infratech noted that it had already completed a 5-MW solar project in line with its strategy to develop up to 300 MW of solar capacity over the next two years across India. The completed project is located at Patan in Gujarat state Lanco Infratech observed that Patan is the first solar plant installed in the state, where the group is developing a further 35 MW of solar capacity. A further 5 MW of capacity is targeted for commissioning in the state in April 2011.

Lanco is also building hydroelectric capacity. For instance in late 2010 France’s Alstom was awarded the equipment contract for the 76-MW Phatabyung project by Lanco, which in 2009 awarded Alstom a similar contract for the 600-MW Teesta-VI project in Sikkim state. Lanco additionally has several gasfired projects. In late 2010 a subsidiary, Lanco Kondapalli Power Pvt Ltd, closed finance on a 732MW combined-cycle project at Kondapalli in Andhra Pradesh state. Coal-fired plants are nevertheless

implementation of its MoX fuel program at the no.4 reactor at the Hamaoka nuclear power station. the program was due to be implemented by the end of March 2011. However, chubu electric has decided not to load fuel until it has assessed the seismic safety of the no.4 unit at the request

of the local community. the no.4 unit is a boiling water reactor with 1,137 megawatts of capacity. MoX, or plutonium-uranium mixed oxide, fuel is already used by several Japanese power companies. the tokyo electric Power company Power started generating power using MoX fuel at the no.3

Lanco’s main type of plant by fuel. In September 2010 China’s Harbin Power secured an order valued at about $1.49 billion for sixteen 660-MW supercritical coal-fueled units from Lanco.

At about the same time Lanco achieved financial close on the 1,320-MW first phase of its 2,640-MW Babandh coal-fired project at Dhenkanal in Orissa state. Subsequently Lanco said that subsidiary Lanco Vidarabha Thermal Power Ltd had achieved financial close on a 1,320-MW coal-fuelled project in Maharashtra, with the Rupee 55.49 billion ($1.26 billion) of debt being provided by a consortium of 15 local banks and financial institutions. Lanco Infratech is also an engineering, procurement and construction contractor. For instance on December 20 it was awarded the contract to build a 1,200-MW coal fired plant comprising two 600-MW units for Moser Baer Projects.

Lanco is also looking overseas. For instance it was a bidder for the Meghnaghat independent power producer project in Bangladesh in November 2010.

reactor at its Fukushima no.1 plant at okuma in Fukushima prefecture in september 2010, following on from its use at the Kyushu electric Power company’s Genkai plant in saga prefecture and the shikoku electric Power company’s Ikata plant in ehime prefecture. France ‘s areva

has also signed contracts to supply MoX fuel assemblies to plants owned by Kansai electric Power company, J-Power, the chugoku electric Power company and the Hokkaido electric Power company.

PoWer InsIder January/February 2011 7

news desk Thailand’s EGco incrEasEs EquiTy inTErEsT in PhiliPPinE iPP ProjEcT Thailand ‘s ElEcTriciTy GEnEraTinG Public comPany limiTEd (EGco) has agreed to acquire additional equity in the Philippine private generator Quezon Power. Egco is buying the interest from the US’s Covanta Energy International Investments, Inc. Egco said that, when completed, the acquisition will increase its ownership interest in the 460-megawatt (MW) coal-fired independent power producer project at Mauban on Luzon Island to over 52%. In addition, Egco is acquiring a 100% stake in the operation and maintenance provider for the project, and will thus become responsible for running the plant under a long term operations and maintenance contract.

Egco will acquire 100% of the outstanding shares of Ogden Power Development Cayman Inc through New Growth BV , a new Egco subsidiary incorporated in the Netherlands. Ogden Power owns a 26.125% indirect interest in the Quezon Power (Philippines) Limited Company. Egco already owns a 26% interest in Quezon Power meaning that, on completion of the share purchase agreement, its equity stake will rise to 52.125%. Under the operations and maintenance contract, Egco is separately buying 100% of the outstanding shares of Covanta Philippines Operating Inc. The financial terms of the two

acquisitions were not disclosed separately. However, Egco said that it will pay “a total consideration for the acquired assets [of] approximately $215 million,” and would fund the purchase with cash and from existing credit lines.

Given that the acquisition involves only 120.2 MW of attributable capacity this represents a sizeable price per kilowatt - even taking into account that the $215 million price tag includes the operations and maintenance rights.

However, Egco President Vinit Tangnoi said that the company believes that Quezon Power is one of the best IPP assets in Southeast Asia. It has “consistent operations, a highly experienced management team, favourable contract structure with low risks, stable cash flows, and a distinguished environment track record,” he noted. The Quezon Power project was developed on a build, own and operate basis by the US’s InterGen and built under an engineering, procurement and construction contract awarded to the US’s Bechtel. Construction began in 1997 with the base load coal-fired plant entering operation in May 2000.

The generator sells all of its capacity and output to the privately-owned power distributor and retailer Manila Electric Company under a 25-year power purchase agreement. The coal is imported through a dedicated port and storage facility, with two-thirds of the coal being supplied by Indonesia’s PT Adaro and with PT Kaltim Prima supplying the rest. Apart from the power plant, Quezon Power owns a 31-kilometer, 230-kilovolt double circuit transmission line and related facilities in Quezon province.

The project cost more than $800 million and included $207 million of equity funding. The debt financing was completed in February 1997 with the $662-million package being underwritten by UBS. The US Export-Import Bank and the US’s Overseas Private Investment Corporation (OPIC) provided political risk insurance for $405-million and $100-million construction loans, respectively. The debt package also included a $115-million uncovered construction loan, a $30-million uncovered cost overrun facility and letters of credit relating to the performance of Quezon Power. Around $215 million of senior secured bonds due 2017 were issued in 1997 to replace the OPIC loan and part of the uncovered construction loan. US Exim subsequently refinanced its construction loan with a direct loan. Covanta expects that the transaction will close in the first quarter of 2011,

subject to customary approvals and closing conditions. “The sale is expected to generate a one-time after tax book gain of approximately $140 million at closing,” Covanta said.

Covanta added that, for the twelve months ending September 30, 2010, Quezon Power had contributed $2.8 million of revenue, $19.5 million of adjusted earnings before interest, taxation, depreciation and amortization, and $15.9 million in free cash flow to the company’s consolidated results.

Covanta had said in June 2010 that it planned to sell its equity interests in four fossil-fuelled facilities in the Philippines, India and Bangladesh. Quezon Power is the first of the assets to reach the stage of a sale agreement. Egco bought its initial 26% stake in Quezon Power in 2008 from Global Power Investments, which comprised the US’s GE Capital, Quantum Fund and the International Finance Corporation. The other shareholders then included Covanta with the US’s InterGen (46%) and the local PMRL (2%).

While InterGen’s ownership of Quezon Power remains unchanged, it has seen its own ownership change twice in the last few years. Most recently, China’s Huaneng Group bought a 50% stake in the US-headquartered InterGen from India’s GMR Group for $1.232 billion Egco’s portfolio currently comprises power generation assets with more than 7,300 MW of gross capacity in Thailand and Laos as well as the Philippines.

Egco numbers Hong Kong’s CLP Group among its overseas investors with a 22% stake, while the stateowned Electricity Generating Authority of Thailand (Egat) owns 25.4% of the company. Egco, which is Thailand’s second largest independent power producer and supplies 3,836.6 MW to Egat, said in early 2010 that it plans to spend at least $1 billion through 2014 on raising its net capacity from 4,250 MW in 14 operating plants to at least 5,250 MW. It added that the investments would be focused overseas, where up to 30% of its total portfolio could be in 2014 compared with 10% in 2010.

Egco subsequently in September acquired an additional 10% stake in the 1,080-MW Nam Theun-2 hydroelectric project in Laos for $73.33 million, equivalent to $675/ kW. Egco already held a 25% stake in Nam Theun-2. The additional equity in Nam Theun-2 took Egco’s total attributable interests to 4,361.08 MW in the 14 operating plants. The figure has now risen to more than 4,481 MW following the acquisition of the additional interest in Quezon Power.

company news from around the world Posco Power looks at solar

The local developer Posco Power has formed a joint venture with the california-based renewable energy developer sustainable Energy capital Partners (sEcP).

The two companies will develop and build a 300-megawatt (mW) solar photovoltaic power plant at boulder city in

nevada in the united states. soung-sik cho, the president and chief executive officer of Posco Power, said that the “project is the world’s largest solar PV power plant and it meets the Posco Group’s actively promoted green energy strategy. it will be the foundation of our entry into the us and other overseas markets

8 January/February 2011 PoWEr insidEr

for new and renewable energy,” he added. sEcP said that the “partnership with Posco Power will become an example of what’s possible in today’s solar industry when global companies work together to implement a shared vision.” The boulder city plant will take sEcP’s portfolio of solar projects

to more than 400 mW in the southwest of the united states. sEcP noted that Posco Power was the largest independent power producer in south Korea. sEcP added that the boulder city plant would be Posco Power’s first overseas renewable energy project to be developed with-

out the involvement of parent company Posco. The Parsons corporation will be involved in the engineering and construction of the project. construction is scheduled to take place during the second half of 2012, with the plant projected “to provide electricity to nearly 135,000 households for 25 years,” sEcP said.

LANDIS & GYR CHOSEN BY CHINA TO HELP BUILD WORLD’S LARGEST SMART GRID ONLY INTERNATIONAL SMART METER SOLUTIONS PROVIDER SELECTED BY STATE GRID CORPORATION OF CHINA Landis+Gyr, the world’s largest smart meter solutions provider, today announced it has been selected by the State Grid Corporation of China, the country’s leading power grid operator, to supply over 10,000 commercial and industrial advanced electricity meters for upcoming deployment in six provinces.

Landis+Gyr, which operates manufacturing and research and development facilities in China with more than 300 employees, was the only international smart meter vendor to win a contract to supply the polyphase commercial and industrial smart meters, which will provide unparalleled digital accuracy and reliability. Twenty-five meter suppliers competed in the bidding process, widely seen as the first phase in a larger and more ambitious country-wide deployment.

“It would be difficult to overestimate the importance of this initial contract given the State Grid Corporation of China’s stated determination to build a smart grid in the areas it operates,” said Oliver Iltisberger, Landis+Gyr’s Executive Vice President, Asia Pacific region. “Landis+Gyr are thrilled at the prospect of partnering with the State Grid Corporation to help Chinese businesses and consumers manage energy better in the world’s fastest growing economy.”

In March 2010, Chinese Premier Wen Jiabao called for “pushing forward with building a smart grid” in an annual report to the National People’s Congress. Landis+Gyr is helping design the smart grid of the future by connecting utilities and consumers around the world via so-called smart meters, devices that provide two-way communication designed to save energy, cut costs and reduce greenhouse gas emissions. Landis+Gyr is an industry leader in the Asia Pacific region, supplying leading edge smart meters in Australia and New Zealand, as well as providing tamper proof products in India.

“This win is a testament to Landis+Gyr’s strong presence in China for more than 15 years and our ability to develop and produce meters for the local market,” said Carrie Lin, Chief Executive Officer of Landis+Gyr China.

“With our technology competence and experience in providing high quality meters, we are well positioned to support the smart grid roll out in China.”

Work begins on Vietnam’s 1,200-MW Lai Chau hydropower project

A ground-breaking ceremony has been completed for Vietnam’s US$1.8 billion, 1,200-MW Lai Chau hydropower project, regional media reported.

The hydro project, located

in Nam Hang Commune in Lai Chau Province and owned

by Electricity of Viet Nam (EVN), is expected to start generating in 2017.

This announcement follows recent news from Vietnam that the 2,400-MW Son La hydro project, which is Southeast Asia’s largest hydroelectric power station,

has begun operation.

The first of six turbines at the Son La hydropower station has been connected to the national power grid, said the director of the plant’s management board.

POWER INSIDER JANUARY/FEBRUARY 2011 9

NEWS DESK INDIA AIMS FOR ASIA’S BIGGEST TIDAL POWER PLANT THE WESTERN INDIAN STATE OF GUJARAT IS AIMING TO HOST THE FIRST COMMERCIAL-SCALE TIDAL POWER PROJECT IN ASIA after signing a deal with a British marine energy company, officials said Wednesday.

State Energy Minister Saurabh Patel told AFP that two or three locations had been identified in the Gulf of Kutch where turbines from London-based Atlantis Resources Corporation could be set up.

A preliminary agreement was signed last week between the government and Atlantis which foresees the start of construction later this year, with initial capacity of 50 megawatts (MW) and longterm capacity of up to 250 MW. Patel said environmental and commercial factors would be taken into consideration, as well as highly sensitive territorial claims in the area where the sea is divided between India and Pakistan.

“We have to take into consideration that the local fishermen are not affected, that there is no harm to the environment and that traffic at the ports in the Gulf region is not affected,” he said.

The company said the project would “require hundreds of millions of dollars of investment in tidal turbines,” adding that its studies of the waters around Gujarat showed that tides there were strong enough to generate 300MW of power.

Highly industrialised Gujarat, one of the best performing states in the country economically, has installed electricity capacity of more than 11,000 MW at present, meaning tidal power would meet only a fraction of total demand.

D.J. Pandian, chairman of the state-run Gujarat Power Corporation, said in a statement released after the deal was signed that the project “will be India?s and indeed Asia?s first at commercial scale.”

To become the first in Asia, the project will need to be completed before South Korea’s 254 MW Sihwa Lake tidal power project.

The Korean facility was on track to become the world’s largest in 2009, but it has since been hit by repeated delays that mean it is still unfinished.

The Gujarat project is the latest in a series of steps taken by India, the world’s third-largest producer of electricity using fossil fuels, to meet its energy needs using renewable sources.

Last year, Indian Prime Minister Manmohan

Singh launched the National Solar Mission, saying it could “establish India as a global leader in solar energy” in the areas of power generation and technology production.

India’s energy infrastructure is unable to match demand for electricity, with government figures showing approximately 80,000 impoverished Indian villages with no access to the power grid.

Currently, the country produces more than 15,000MW of power from all renewable sources, according to the Ministry of New and Renewable Energy, with 10,000MW from wind energy alone.

Tidal power has yet to become a popular source of energy, due to the high costs involved in setting up plants, and the limited availability of sites with high enough tidal ranges.

The biggest tidal power station in the world is located at La Rance, Brittany, France, where 240MW is generated, sufficient to meet 90 per cent of Brittany’s electricity demands.

U.S., China Agree to Expand Nuclear Security Ties The United States and China yesterday inked an agreement to set up a collaborative nuclear security center inside the Asian power that would seek to spread best practices on the safeguarding and accounting of nuclear materials, the Associated Press reported .

U.S. Energy Secretary Steven Chu signed the deal in Washington with visiting China Atomic En-

ergy Authority Chairman Chen Quifa. Chu said the agreement was a significant milestone for efforts to improve global nuclear security. President Hu Jintao first proposed collaborating on the installation last April during the Global Nuclear Security Summit in Washington.

The two world leaders touted the new collaboration at a joint media appearance at the White House. Washington is searching for opportunities to increase understanding with Beijing on security and other issues.

While the United States would supply trainers and machinery for the centre, China would bear the brunt of the cost of its operation. Obama officials would like to see the institution stage bilateral manoeuvres aimed at reacting to atomic incidents and terrorist incursions. Officials said other Asian nations would likely be allowed to use the centre.

U.S. National Nuclear Security Administration and Defence Department officials are to join with China Atomic Energy Authority personnel in establishing the centre, which is anticipated to meet the security needs of China’s expanding atomic energy sector, according to an NNSA press release. The site would provide a resource for sharing technical data and best practices, establishing training programs, “and promoting technical collaborations that will enhance nuclear security in China and throughout Asia,” the release says.

“This agreement reflects the commitment of

COMPANY NEWS FROM AROUND THE WORLD Siemens starts f iscal 2011 with strong growth and record prof it Double-digit growth in new orders and revenue

In the first quarter of fiscal 2011, Siemens maintained the positive growth trend

of the previous quarters, with a strong 19 percent increase in new orders yearover-year. Revenue also rose sharply by 12 percent.

Income from continuing operations reached a record level, increasing 17 percent

10 JANUARY/FEBRUARY 2011 POWER INSIDER

on strong development in the company ’s short-cycle industry activities and power plant business. “Capitalefficient growth is our aspiration. We have lived up to it. Orders and revenue grew in all regions, particu-

larly in emerging markets.

From this our business in Germany benefits as well.

We delivered excellent bottom-line performance and are fully on track to reach the targets we set for fiscal 2011,” said Siemens

President and CEO Peter Löscher. The company confirmed its targets for the current fiscal year 2011 (ends September 30).

INDIA TO LEAD SOLAR ENERGY DRIVE IN ASIA AND PACIFIC - ADB

the two governments to strengthen their cooperation in nuclear non-proliferation, nuclear security, and in combating nuclear terrorism and represents a major step forward in implementing the global nuclear security outlined by our two presidents at the Nuclear Security Summit last April,” Chu said in released remarks. “We look forward to working with our partners in China to build this centre of excellence, which will allow us to work together to improve nuclear security in China and throughout the region” The two nations also signed a separate agreement yesterday to create a training centre in the city of Qinhuangdao that would educate customs officials in the detection of potentially trafficked nuclear materials, the U.S. nuclear agency said.

“Preventing illicit transfers of nuclear materials is a critical part of NNSA’s efforts to implement President Obama’s goal of securing vulnerable nuclear material around the world,” Deputy Energy Secretary Daniel Poneman said in a released statement.

The memorandum of understanding signed

by Poneman and Chinese Customs Vice Minister Sun Yibiao will support a 2005 agreement between the two nuclear powers to curtail trafficking of radiological and nuclear materials

WITH ITS RAPIDLY GROWING ELECTRICITY DEMAND, ample land availability and strong government commitment to sustainable economic growth, India can play a leading role in generating solar energy in the Asia and Pacific region, the Asian Development Bank’s (ADB) Director General for South Asia said today.

Speaking at a conference in India’s Gujarat state, Director General H. Sultan Rahman said strong Indian government support at both national and regional levels has galvanized a range of major solar energy projects that place the country at the forefront of solar power development.

“Economies of scale are reducing costs and Gujarat, as well as other states in India, has greater solar radiation, more rapidly growing electricity demand and more available land,” Mr. Rahman said.

The Government of Gujarat recently identified a 2,500 hectare site to build the Charanka Solar Park, which when completed will be among the largest solar power facilities in the world.

In tandem, ADB is preparing a $100 million loan to fund a proposed transmission line that will carry the 500 megawatts generated at Charanka to the national electricity grid.

In May 2010, ADB launched the Asia Solar Energy Initiative (ASEI) to identify and develop large capacity solar projects to increase the amount of solar power generated in the Asia and Pacific region six-fold to 3,000 megawatts by mid-2013. Before the launch of ASEI, the region produced less than 500 megawatts of solar power from existing plants. Overall regional solar capacity is expected to reach 1,000 megawatts by the end of this year and 3,000 megawatts by May 2013.

The ASEI also includes establishment of a knowledge platform, the Asia Solar Energy Forum, and a fund to promote solar energy development from which, given its potential, India is expected to be among the major beneficiaries.

POWER INSIDER JANUARY/FEBRUARY 2011 11

INDONESIA

INDONESIA POWER CRISIS Nicholas Newman Reports

12 JANUARY/ FEBRUARY 2011 POWER INSIDER

JAKARTA POWER PROBLEMS! Indonesia is facing a power crisis, largely of its own making; this will surprise many given that Indonesia is the world’s largest power station coal exporter, a significant natural gas producer and having immense renewable energy potential. Customers have suffered from frequent blackouts over the past few years, which have resulted in PLN the state utility asking its major industrial customers to shift their production activities away from peak times. This has resulted in no aspect of the economy being unaffected by the power crisis that faces this vast country of over 227 million people spread across 17,500 islands.

As a result, this dire power situation is forcing both business and domestic users to seek alternative solutions, such as in house generators and battery powered home appliances.

These failures by the power sector to provide sufficient capacity has raised concerns amongst the country’s leading economists, business leaders and have forced the government to admit there is a serious problem that is hindering the country’s economic development growth prospects. Such frequent power interruptions have proven damaging to the country’s economic growth, observes Nico van der Linden, Energy Economist at CASINDO programme ECN Policy Studies.

WHY INDONESIA’S POWER SECTOR IS IN CRISIS? Indonesia’s current power crisis began in 2008, and was caused by a number of factors, including logistical, financial and cultural issues, which affect power supply, investment, production and distribution.

A major factor is due to the impact the 1997 Asian Financial Crisis had on the Indonesian economy.

This resulted in the state owned power company PT PLN cancelling many of the planned power stations and other improvements to the power infrastructure, due for completion over the following decade. Nor was it helped that once the economy began to recover, due to a resource based export boom, that decision makers failed to take the appropriate action in the years between 2000 and 2005, suggests Peter McCawley Visiting Fellow, Indonesia Project at the Australian National University. Part of the reason for this period of indecision was due to a change in governing culture. The doctrine change from a belief that the state could solve all the problems that face the country’s power sector, to one of a realisation that the state needs to work in conjunction with the private sector , in order to tackle Indonesia’s power issues, suggests John Riady, Editor at Large at the Jakarta Globe.

However, the country’s transition from a net oil exporter to a net oil importer in 2004 has not helped.

This meant for state utility PLN, the country’s, many oil-burning inefficient aging power stations were no longer insulated from the vagaries of the world oil markets. This resulted in severe financial problems for PLN, which has run at a loss for many years. During the period 2003 to 2010, Nico van der Linden suggests that the government had set regulated electricity

tariffs below production costs. As a result, it became increasingly difficult for PLN to generate sufficient capital to reinvest in new power generation capacity.

A MATTER OF PRICE? However, since 2005, the country has experienced a growing export boom based on primary resources and manufacturing, which has resulted in an annual average economic growth of 6% per annum, and forecasters such as Business Monitor International, predict Indonesian power consumption will increase from 130 TWH today, to 170 TWH by 2014.

Currently, Indonesia’s power market demand consists of 35% from the industrial sector, residential 40% and the rest includes retail and commercial users.

At present, only 65% of the country’s population has some access to electricity, though the federal government in Jakarta has ambitious rural electrification plans for this to improve to 100% by 2025.For the federal government to achieve its goal of 100% electrification, many obstacles lie in the way of reaching such an ambitious target. For Indonesia, resolving the country’s power crisis is not just a simple issue of investing in a fleet of new power stations and other infrastructure. The solution is much more complex and requires further changes in market reforms and energy policy to reduce costs, improve productivity, competition and attract international investment.

The main obstacle is that of price. Indonesia’s energy policy has been based on the presumption that energy would always be plentiful and inexpensive. In fact, the country’s past cheap energy policies have encouraged a wasteful usage of power, which has contributed to the country’s power shortages. Using energy efficiently has never been regarded as a political priority. Hanan Nugroho, economist at the National Development Planning Agency has suggested that if energy efficiency measures were introduced, energy consumption could be reduced by a quarter without having an impact on economic growth.

Until 2009, it was costing PLN $11 cents per kWh to produce power, but PLN could only sell power at a government-regulated price of $6.5 cents per kWh. As a result, it was costing the federal government in Jakarta $6 billion per annum in subsidies to PLN. In June 2010, the government attempted to increase

electricity prices by 30%. However, due to intense lobbying led by the manufacturing sector, the federal parliament increased tariffs by 10% to 15%. This resulted in claims by business groups that actual costs had increased by 30% to 80%, though the 30 million low-income households were exempt from such increases. In October 2010, the federal government attempted to get parliamentary approval to increase 2011’s power prices by a further 5.4%. However, the federal government failed to obtain the necessary parliamentary approval. This is at a time when the government has slashed its electricity subsidy to PLN to $4 billion per year, leaving a hole in PLN’s finances, thus reducing its ability to provide improvements in power supplies. It would appear that the business lobby efforts to maintain current tariffs are working against their long-term interests to improve further their energy efficiency and competitiveness.

A MATTER OF POWER GENERATION? In 2009, Indonesia was estimated to have a total generating capacity by the IEA of some 31 GW, though many plants are due for retirement. However, actual operating capacity is thought to be under 24 GW. Today PLN controls around 85% of the country’s generating capacity. The reminder is operated by the private sector or other state owned agencies, which due to reforms introduced in 2009, are now allowed to compete against PLN. However, most are only likely to do so at a regional level.

Eighty per cent of Indonesia’s generating capacity is situated on the neighbouring islands of Java and Bali where the country’s major cities, including Jakarta are located. The Java-Bali grid has a generating capacity of 20,000 megawatts. PLN director of operations Ngurah Adnyana on the Java-Bali grid claims the company has a weekday capacity of 17,500 megawatts, with additional reserves of 2,000 megawatts, with demand for power climbing at 9% per annum. However, this is at a time when PLN has ambitions of having as an operating reserve margin of 30 %. Independent power providers such as PT Paiton Energy’s 1,350-megawatt coal power station, which is owned by a multinational conglomerate that includes Britain’s International Power PLC, provide additional power to the grid. Paiton energy is in

AT PRESENT, ONLY 65% OF THE COUNTRY’S POPULATION HAS SOME ACCESS TO ELECTRICITY, THOUGH THE FEDERAL GOVERNMENT IN JAKARTA HAS AMBITIOUS RURAL ELECTRIFICATION PLANS FOR THIS TO IMPROVE TO 100% BY 2025.

POWER INSIDER JANUARY/ FEBRUARY 2011 13

indonesia the process of constructing a new 815 MW thermal power plant, adjacent to its existing plant, designed to sell supply power to PLN. As part of government policy to tackle the country’s power problems, improve productivity, reduce operational costs, the state has introduced a series of market reforms to encourage greater competition between PLN and independent providers. In 2006, Jakarta launched a fast track plan to add 20,000 megawatts of extra generating capacity over the next eight years. The first phase, of 10,000 megawatts of largely coal power stations, together with an ongoing program to convert oil fired power stations to natural gas and improvements in the reliability and capacity of the grid, was due to be completed by this year, unfortunately the first phase is running late observes Priagung Rakhmanto, an analyst from the Reforminer Institute. Peter McCawley, suggests construction delays have been caused by the failure of project promoters to create sufficiently ‘bankable’ projects, which had all the necessary regulatory, planning, and land ownership issues resolved, nor has it helped the current international crisis faced by project promoters. However, the coal-powered stations built on Java, are largely complete, those elsewhere are behind schedule.

Though, as a result of improvements in tariffs, capacity, productivity and reduction of operating costs, PLN has announced in September 2010, it has sufficient capacity in the Java Bali grid to end the policy of planned power cuts and the need for industrial consumers to shift production away from peak times. However, for those living elsewhere in the country the prospects of planned blackouts is likely to continue. Observers such as Fabby Tuminiwa, director of the country’s Institute of Essential Services Reform, suggests that PLN will have to return implementing planned power cuts next year, due to delays in the power station building

program and continued strong economic growth in the economy.

There are now suggestions that the second phase, will also be late in completion, in this phase coal is planned to play a smaller role, with a greater role played by new power plant fuelled by natural gas and renewables such as geothermal. According to PLN’s recent electrification plan from 2008 to 2018, domestic coal usage for power generation should increase from 45 % in 2008 to 63% in 2018, and renewables can increase their market share from 30% of generating capacity today to 35% by 2014. Peter McCawley regards this plan to be largely aspirational in nature, given that the existing incentives on offer are regarded as insufficient for the scale of investment required.

However, there are problems with government ambitions to increase the usage of coal and natural gas. For producers the low market prices available to producers makes supplying the domestic market unattractive as compared to exporting to India or China. This has forced the government to reserve a portion of production from producers for the domestic market. Negotiations between energy companies and government as to how much of a given projects output will be reserved for the domestic market have delayed many new projects from proceeding, resulting in delays in new fuel supplies for the new power stations that are now coming on-stream. In addition, the low domestic power prices on offer mean there is little incentive for independent power producers to compete at the retail level with PLN. Instead, most investors will choose to invest in new power plant that sells power to PLN. In addition, international investors are more likely to favour investment in new coal plant that costs to build around $1,000 per KW, rather than geothermal plant that costs double that to construct.

Because of market reforms PLN has begun reorganising itself into a strategic planning agency

IN 2006, JAkARTA LAUNCHED A FAST TRACk PLAN TO ADD 20,000 MEGAWATTS OF ExTRA GENERATING CAPACITy OVER THE NExT EIGHT yEARS.

and several regional power providers. It has also seen private sector companies such as Medco Power sign a contract to operate PLN’s 2 660 MW Tanjung power plant for the next twenty years. It has also seen regional government such as Jakarta City Council initiate plans to set up its own power utility company to provide stable power supplies to residents, business and the soon to be built mass transit system. Elsewhere on Borneo, Indonesian customers have recently started importing electric power from a series of hydroelectric dams in East Malaysia. In a few years’ time, there are plans to construct subsea interconnectors to export power from newly built South Sumatran coal power stations to energy hungry Java, and to Peninsula Malaysia and Singapore. Jakarta has long-term ambitions to implement a nuclear power station program, perhaps starting in 2025, though consultants Wood Mackenzie suggests such a prospect is unlikely given the wealth of coal, gas and geothermal resources available, together with the higher costs of building such plant in this volcanically active country.

As for the future!

Thus, Indonesia has ambitions that it will be able to resolve its on-going power crisis. In the short term, this is unlikely to happen. Vested interests in parliament mean that the ruling governing coalition has found it politically difficult to implement reforms and has been forced to compromise. Even so, what the government has achieved despite these problems is impressive.

In the long term, if the government manages to implement the necessary legal, regulatory and economic reforms, then the country should be able to resolve its power problems. Once achieved, the Indonesian power sector should be able to attract the volumes of investment required to meet its ambitions.

At present, many foreign investors have regarded Indonesia as an alarming place to operate. In fact, foreign investors have described the experience of investing in Indonesia as being as rabbits amidst a jungle full of tigers! ENDS people And orgAnisAtions mentioned: • PT PLN the state owned Electricity Company that is responsible for strategic planning, distribution and generation.

• Nico van der Linden, Energy Economist at CASINDO programme ECN Policy Studies • Peter McCawley Visiting Fellow, Indonesia Project at the Australian National University.

• John Riady, economist and Editor at Large at the Jakarta Globe.

• Business Monitor International – business intelligence • Hanan Nugroho, economist at the National Development Planning Agency • PT Medco Power – an independent power provider • PT Paiton Energy - an independent power provider • Priagung Rakhmanto, an analyst from the Reforminer Institute • Fabby Tuminiwa, director of the country’s Institute of Essential Services Reform, • Wood Mackenzie – market analysts

14 January/ february 2011 power insider

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ENERPROJECT

ENERPROJECT SA AN OVERVIEW

Enerproject SA, (Enerproject) an ISO 9001 certified company is a leading gas compressor packager for gas turbine fuel pressure boosting, gas processing and gas recovery systems. Incorporated in 1995, Enerproject with headquarters and production facility in Switzerland is a world renowned company internationally present and active through its network of strategically located offices and contacts around the world.

16 JANUARY/FEBRUARY 2011 POWER INSIDER

“Enerproject manufactures a comprehensive range of gas compressor packages” explains Vito Notari, Sales Manager. “We serve two main industries and subsequent applications. These are the Power Generation and Oil & Gas markets.

Our package systems are based on well proven heavy duty machines. Additionally, our Oil Injected Screw compressor packages can conform to specific stringent requirements of the turbine manufacturers like maximum residual content of oil and liquids in the compressed gas. These characteristics makes that we are supplying compressors units to the main OEM’s and packagers like, Siemens, GE, Turbomach, Centrax and Kawasaki under others. Our package systems represent excellent reputation, availability and uncompromised quality. Thanks to our experience, gained in different market sectors, we’re able to easily customize the gas compressor packages, to meet customer satisfaction; and at the end that’s what really matters. What is particularly appealing about our company is that we’re extremely flexible. We do always try to find a solution to the specific customer requests and needs. This aspect is one of the most appreciated by our clients.”

Enerproject is not a newcomer in the Asian market; the first gas compressor was installed in 1996! During the last ten years the interest for their products did constantly rise. That’s also why they’re focusing resources targeting Indonesia and Thailand. In fact, Indonesian and Thai governments are looking at many ways to increase the use of gas generation. The experience of Enerproject in this sector is second to none.

The company does operate extensively in the Power industry, but also offers a vast range of solutions to Oil & Gas, Biogas applications,

and Flare gas recovery in order to reduce the emission of greenhouse gases. They supply oil injected screw compressor packages as a standard product. However, other solutions with technologies like rotary vane or centrifugal compressors can be provided.

“The majority of Enerproject compressors are used as fuel boosters to compress natural gas to drive gas turbines or gas engines. Our fuel gas booster compressors ensure continuous supply of fuel gas at specified discharge pressures and temperatures to the gas turbines. Many new natural gas fired power plants are configured as

cogeneration or combined cycle systems. Every configuration requires one or several gas turbines.

These turbines if not supplied by a medium/high pressure gas pipeline need the gas to be boosted by a compressor”, adds Mr. Notari.

Enerproject meets the gas compression requirements of industrial and public sectors which include but are not limited to: textile mills, pharmaceutical and food manufactures, chemical plants, district heating systems, sewage or biomass processing and many others.

Please contact us directly for more information regarding our products and services.

Visit our webpage: www.enerproject.com Enerproject SA Via Cantonale CH-6805 Mezzovico Tel.: +41 (0)91 857 56 88 Fax: +41 (0)91 857 76 39 Email: info@enerproject.com

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COZUMEL CASE STUDY

CASE STUDY:

PREMIUM PRODUCT AND BASE NUMBER MONITORING LEAD TO VALUABLE SAVINGS AT COZUMEL

Total reported annual customer saving US$39,000 Company: Energia y Agua Para de Cozumel Country: Mexico Application: Diesel engine Saving: US$39,000 total annual reported saving Key edge: Shell Argina XL 40, Shell LubeAnalyst and Shell LubeVideoCheck POWER The Energia y Agua Pura de Cozumel (Cozumel) power plant was the first to be fueled with heavy oil in Mexico and supplies its network distributors with electricity. Low oil performance led to poor engine cleanliness and problems caused by soot and deposits.

Cozumel was trying to manage base number depletion without any guidance from its existing lubricant supplier regarding the oil sweetening process. Sharp falls in base numbers had been experienced with two different products in its four diesel engines. An engine inspection confirmed a heavy build-up of soot and deposits: a direct result

20 JANUARY/FEBRUARY 2011 POWER INSIDER

of the engine oil base number dropping below a critical level.

Shell’s technical team proposed a best-inclass premium product alternative, Shell Argina XL 40 and the Shell LubeAnalyst and Shell LubeVideoCheck services to ensure base number monitoring and control.

Cozumel has found that using Shell Argina XL 40 and careful monitoring means that the engines are much cleaner than before with fewer deposits in their chambers and valves. Through a combination of oil choice and a precise sweetening regime, the top-up volume dropped from125 to112 L/d with Shell Argina XL 40. This resulted in a reported annual saving of US$39,000 across the four engines, excluding the benefits from lower maintenance requirements and fewer replacement parts.

CHALLENGE Cozumel was trying to manage base number depletion in its diesel power generation engines.

An engine inspection confirmed a heavy build-up of soot and deposits: a direct result of the engine oil base number dropping below a critical level.

SOLUTION Shell’s technical team proposed a best-in class premium product alternative, Shell Argina XL 40 and the Shell LubeAnalyst and Shell LubeVideoCheck services to ensure base number monitoring and control.

OUTCOME Cozumel has found using Shell Argina XL 40 and careful monitoring means that the engines are much cleaner than before with fewer deposits in their chambers and valves.

VALUE Through a combination of oil choice and a precise sweetening regime, Cozumel has reported annual savings of US$39,000, excluding the benefits from lower maintenance requirements and fewer replacement parts.

SHELL ARGINA XL Medium -speed trunk-pist on diesel engine oil Shell Argina XL is a multifunctional crankcase lubricant for highly rated, medium-speed diesel

engines operating on residual fuel. Shell Argina XL is designed for conditions of very high oil stress and has been optimised to improve deposit control.

APPLICATIONS Medium-speed industrial or marine propulsion and auxiliary engines burning residual fuel oils, which create conditions of very high oil stress. These conditions usually occur in newer engine designs with flame rings, especially from Wärtsilä • where oil consumption is less than 0.5 g/kWh • where load factors are greater than 90% • where fuels with sulphur levels greater than 3% are used.

Medium-speed engines that burn residual fuel need very specialized lubricants. Heavy fuels contaminate the oil with asphaltenes and require special types of detergency to avoid sludge formation.

The combustion of high-sulphur fuels produces sulphur acids, which cause high wear rates for piston rings and cylinder liners unless neutralised by a high basicity in the oil. The oil is in service for very long periods, so centrifugal separators are used to remove water and combustion contaminants from the oil.

Mediumspeed engine oils must be specially designed to release these contaminants in the separator.

Modern engines are more demanding than ever.

Oil consumption has been drastically reduced by the use of flame or anti-polishing rings. Lower oil consumption reduces the rate of oil renewal through top-up. This means that the average age of the oil charge is far greater than it used to be.

Consequently, the oil is exposed for much longer than before to the stresses of high temperatures, contamination and acid combustion by-products.

Shell Argina XL has been specially designed for very high stress conditions, which are found most often in modern Wärtsilä engines in power-plant or ship-propulsion applications.

PERFORMANCE FEATURES AND BENEFITS • Excellent engine cleanliness. Shell Argina XL has higher detergency than Shell Argina X, which leads to an exceptionally clean crankcase, valve deck and pistons. The formulation has been optimised to reduce deposits in critical areas, for example, the piston undercrown.

• Very high oxidation resistance. The oil offers

•

• •

•

longer oil life and greater resistance to oxidative thickening.

Extra high BN (50). Shell Argina XL provides longer oil life in engines where oil life is limited by depletion of the BN. In many cases, a satisfactory BN equilibrium level can be maintained in conditions where this would be impossible with a 40-BN oil.

Very good BN retention. The oil resists the secondary loss of BN caused by oxidation.

Suitability for centrifugal separators. The highdetergency and low dispersibility formulation releases contaminants and water readily in centrifugal separators.

Full compatibility with the Shell Argina family. Shell Argina XL can be used to top up engines already running on any other member of the Shell Argina family, which gives immediate control of BN without the need for an oil change.

SPECIFICATIONS AND APPROVALS Shell Argina XL is approved by Wärtsilä and meets the engine test criteria for API CF.

21 JANUARY/FEBRUARY 2011 POWER INSIDER

ENERGY POVERTY ALLEVIATION

HOW TO TACKLE ENERGY POVERTY IN ASIA Presentation by J. K. Mehta, Regional Manager (WEC-South Asia)

22 JANUARY/ FEBRUARY 2011 POWER INSIDER

Energy poverty has been the cause of concern and centre of discussions on various forums world-over for decades. Unfortunately, the number of people affected by energy poverty remained nearly static over these periods. Addressing the need of these two billion potential customers for energy access makes for impressive market. However, the challenge is that this market is made up of dispersed customers in difficult locations and with limited sources of income even though they may have abundance of natural resources. It has been observed that people living in poverty often pay a higher price per unit of energy services than do the rich. They also spend more time in obtaining these services and rely on resource scarce and polluting ways of converting energy for services like cooking, drinking water, heating and lighting.

All of which are associated with health impacts.

Talking of international funding in most cases with international aid is not the availability of funds but the capacity to use it. Most aid remains unspent and rarely goes to those who have the capacity to spend it.

Energy poverty has different meaning for different countries and societies. Generally energy poverty is defined using the following criteria: Percentage of income or total expenditure spent on obtaining energy services Although there is no universal benchmark if the household is required to spend around 25% of their income or expenditure for obtaining electricity, heating and water can be deemed as an acceptable threshold (a 10% threshold for the case of electricity can also be considered).

Energy poverty can also be calculated on the basis of engineering estimates to determine the direct energy required to satisfy the basic needs. This category has been used by number of authors (Revelle 1976, Bravo 1979, Krugman and Goldemberg 1983). The studies indicate that requirement of direct primary energy per unit to satisfy basic needs are about 500 watts per person.

However, this type of calculation assumes a number of elements such as equipment size, efficiency and energy intensity. The basic need can also vary with the climate, regions, age, season, etc.

Third yardstick for energy poverty as estimated

by UN estimates that the minimum need for energy services (lighting, cooking, heating, etc) corresponds to about 50 kgs of oil equivalent (Kgoe) of annual commercial energy per capita.

Energy Poverty Alleviation and Millennium Development Goals The energy availability and poverty are closely related to health issues, productivity, environment, gender issue and education. The issues and challenges and its impacts can be classified as under: HEALTH ISSUES Energy (calories) spent in rural areas in collection of fuel wood Ineffective methods of fuel wood collection which impact health.

Indoor pollution (smoke) due to inefficient stoves & improper fuel.

Non-Availability of fresh clean water for drinking Lack of electricity for lighting, heating, environment control & preservation of food/ medicines to improve hygiene and health:

PRODUCTIVITY ISSUES With availability of kerosene, LPG and other efficient fuels, the time spent on fuel wood collection can be utilized for more productive activities which can improve income levels.

With availability of electricity for lighting, the effective working hours can be increased to produce more product & income.

More efficient & better technology equipments can also increase productivity & encourage cottage industry The reliance on biomass fuel results in reduced agricultural productivity by depriving the soil of recycled nutrients that would have been otherwise available from tree crop and animal residues..

ENVIRONMENT ISSUES Availability of better & efficient fuel would reduce the consumption of dung and biomass fuel which can be used for fertilizers & other agricultural purposes.

Control indoor pollution with better fuels and efficient stoves Availability of modern energy resources will reduce deforestation and their consequential impact Degradation of Environment seriously impacts the poor due to their inadequate resources for health and security Renewable energy from Solar, Wind, Microhydel etc. is sustainable & environment friendly GENDER ISSUES In most countries the major burden for collection of fuel wood is on women & children affecting their health & quality of life.

Indoor cooking is also done by women & with polluting fuel producing CO and CO2 and their health is at great risk.

In many countries the women folk are not involved in decision making process both at family level and village level. Thus their issues & problems are inadequately addressed.

EDUCATION ISSUES Families lacking adequate energy supplies tend to limit children’s time spent on school work and reading and families may withdraw children specially girls from school to spend time on fuel wood and dung collection.

With lack of education the rural poor are not able to appreciate the benefits of better fuel, better stoves & energy use. They use much higher discounts rates than do the rich when making decisions about energy carriers and think primarily in terms of the first cost rather than life cycle cost.

Are hesitant to leave traditional practices (even in some affluent families food/bread is cooked on biomass fuel due to misinformation/misconcepts/ traditional values) Education & Energy would provide knowledge about improved hygiene and health practices.

Poor school attendance due to respiratory illnesses There is an urgent need to address this issue of energy poverty but this has to be done while taking into cognizance: The economic considerations which make propoor business sense (or business at the bottom of the pyramid ) with targeted potential two billion POWER INSIDER JANUARY/FEBRUARY 2011 23

EnErgy PovErty allEviation customers.

The engineering issues mainly the technology to be adopted and the scale of the project so that we have designs that are robust enough to stand the heat, dust, humidity, poor maintenance and mishandling but are simple enough to match the skill levels available with the affected populace.

The third and the most important consideration is addressing the social issues or social engineering which involves adapting to local social values and taboos, skill sets and creating awareness and acceptability to the proposed schemes and technologies.

The various stakeholders in any energy poverty alleviation programme would typically include the following : • Government • Funding Agencies • Self-help Groups • Manufacturers and Executing Agencies • Local Community Groups • Monitoring and Coordination Agencies Some of the key observations from scrutiny of various country profile, strategies and actions for Energy Poverty Alleviation have revealed the following mantra’s of success: Strong leadership and good governance Strong funding by Government and other national/International funding Agencies and corporates.

Strong will to do by Project developers and local bodies.

Independence for work to Project providers and affected people.

Subsidy or support to bridge the gap between cost of energy and capability to pay.

Adoption of technology & scale suited to local availability of resources, skill sets, social values and need (A bottom up approach rather than thrust from top).

Focused action on creating awareness, education and acceptance of proposed scheme and technology prior to implementation.

If we have to tap this market of two billion people world-wide then we need to do it by way of focused energy services to address EPA issues as under: Firstly, it needs a predictable energy supply.

The poor can adjust their consumption patterns to some extent. 24-hour daily service is not essential.

In fact, for many power utilities, this quality of service only limits the number of communities they can serve. Each household will likely need only about 10 kilowatt-hours each month, making non-conventional options like solar photovoltaic, a technically feasible option.

Secondly, while they can be capable to pay, poor customers need “affordable” prices with payments that take into account local (agriculture based) income generation streams.

Finally, and possibly most importantly, energy supply must lead to productive uses and raise incomes. This is so self-evident that many programs have taken it for granted. Energy supply and productive applications must be planned in conjunction with each other.

Renewables can be considered a nearly unlimited supply of energy if one considers the energy needs of mankind compared with the energy flows to 24 January/ february 2011 power insider

earth from the sun. They are also mostly local, and, therefore add to energy security. New renewables cannot generally now compete with conventional energy sources or replace them without large subsidies. However, it is worth promoting renewables to benefit from the likely economies of scale and learning curves that increased deployment and competition will bring.

The World Energy Council can play an important role in catalyzing the process for Sustainable Energy Alleviation Programme and I suggest the following road-map to take this initiative forward: The first step towards addressing the challenges for energy poverty alleviation is to identify village clusters having similar availability of resources, skill sets, economic condition/ income levels (capability to pay) for energy, the minimum demand of energy to be met, connectivity or likely connectivity to the grid in foreseeable future and other similar issues.

This can be done through a countrywide survey and typical form for survey is enclosed as Annex-2 The data collected can be categorized and cluster of villages with similar issues, availability of resources and capability to pay for energy services may be prepared generally as per the EPA (Energy Poverty Alleviation) matrix as shown in figure below:

The detailed analyses of villages in each cluster could then be carried out to identify the

best suited technology and size/scale of project and requisite funding/investment required for actualization of EPA initiative.

At this stage, we have to invite funding agencies/investors/project developers and create a match making with the Village Development Committees of local populace for phased implementation of EPA initiatives.

The intervention and support shall also be sought from Government/State Authorities for allocation of requisite land and basic infrastructure and Corporates to facilitate project monitoring and control and overview of project post commissioning as a part of their CSR initiatives. The institutional arrangements for actualizing the initiative needs further detailing and we are seeking advice and value addition from stakeholders to get the optimal fit for partnership.

It is high time that we move from advocacy to action and WE should take a PROACTIVE approach to addressing the energy poverty alleviation issues. By PROACTIVE I mean p - Project proposals to be carefully selected depending on availability of Resources and capability of local people to pay r - Rationalise subsidy o - Off grid electricity using Renewables must be encouraged.

A - Active government policy support and good governance C - Conserve natural resources T - Technology used should be robust enough to withstand heat, dust, humidity ,poor maintenance & mishandling yet simple enough to match the available skill levels of local people . i - Investors should have adequate risk coverage and reasonable return on investment.

V - Village communities to be involved in decision making and managing the projects. e - Encourage Public –Private partnerships in EPA Projects

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ThaiLand’s naTuraL Gas

Thailand and naTural Gas PTT Public Company Limited (PTT) is a major integrated energy and petrochemical company in Thailand, conducting its business as a national energy company and being listed on the Thai stock market. The major role of PTT is to ensure long-term energy securities of the country.

26 January/February 2011 power insider

At present, thAilAnd is one of the top rAting Cng Countries in the world, the Cng priCe in thAilAnd is the sixth CheApest in the world.

TT Public Company Limited (PTT) is a major integrated energy and petrochemical company in Thailand, conducting its business as a national energy company and being listed on the Thai stock market.

The major role of PTT is to ensure long-term energy securities of the country.

Regarding to the country’s energy demand, Thailand is a net importer of crude oil with a consumption of 873,483 barrels per day, which is the majority (84%) of the total crude oil supply. The other 16% comes from domestic sourcing with the quantity of 165,763 barrels of crude oil per day. Despite being an oil importer, Thailand has indigenous natural gas supply with an abundant reserve. The

majority (80%) of natural gas comes from domestic supply. It mainly composes of 77% from the gulf of Thailand (3,521 MMSCFD). The other 4% comes from domestic onshore fields (160 MMSCFD) as known as Lankrabue field in Phisanulok province in the northern region and Phuhom field in Udornthani province in the northeastern region. The rest (19%) is imported from the fields in Myanmar (869MMSCFD).

In Thailand, natural gas is widely used in various sectors consisting of power plants, gas separation plants, industries and transportation at 69%, 17%, 10% and 4% respectively. PTT plays an important role in natural gas business from supplying, producing

to distribution. The natural gas infrastructure, which requires high investment fund, is also run by PTT. increasing demand of natural gas Vehicles (ngV) The growth of NGVs in Thailand started from the after market’s converted NGVs of local CNG workshops by piloting a NGV project with five converted CNG buses with no prominent progress during 1984-1992. During 1993-2004, the oil prices were still cheap. Nevertheless, Thai government has supported to purchase almost 100 OEM dedicated CNG buses and launched the promotional programs for 10,000 converted taxis with the installation of 12 power insider January/February 2011 27

ThaiLaND’s NaTuraL Gas NGV refueling stations.

Then, CNG became the alternative fuel of choice to cope with the high and volatile oil prices since 2005. The high world oil price affected the continuous increase of the CNG sales volume in Thailand. For the year-end CNG sales volume, in 2006 there was only 377 tons per day, but it doubled up to 1,016 tons per day in 2007. The sales volume increased tremendously to 2,910 tons per day in 2008 and 4,217 tons per day at the end of 2009. Although the Dubai crude oil price has been decreasing from the midyear of 2008, the CNG sales volume was still rising continuously at the decreasing rate. As of 31st July 2010, the daily CNG sale volume was 5,012 tons.

The continuous increase in the number of accumulated NGVs in Thailand was from 25,371 NGVs in 2006 to 55,868 NGVs in 2007 (120% increase from the previous year) to 127,735 NGVs in 2008 (129% increase). It reached 162,023 NGVs in 2009 (27%increase from the previous year) and 193,352 NGVs as of 31st July, 2010.

Thai NGV market became the battlefield for many automobile manufacturing companies for selling OEM and retrofitted NGVs. The proportion of accumulated number of OEMs was growing tremendously from 1% of the total NGVs in the market in 2007 to 7% in 2008 to 10% in 2009 and to 18% in July, 2010.

At present, Thailand is one of the top rating CNG countries in the world, the CNG price in Thailand is the sixth cheapest in the world.

Venezuela is the country whose CNG price is the cheapest in the world. Regarding to the number of NGVs, Thailand is in the eleventh rank in the world. Pakistan, Iran and Argentina are the top three countries with the highest number of NGVs. In Asia, Thailand is in the sixth rank after Pakistan, Iran, India, China and Bangladesh.

Biogas development for vehicles The main objectives of the biogas development for vehicles are to introduce CBG (compressed biogas) as alternative fuel to NGV users

in remote areas and reduce NGV cost.

Furthermore, the CBC development will support government policy on bio-fuel development for transportation.

Biogas is a type of gas resulting from the biological degradation of organic matter in the absence of oxygen called Anaerobic. The sources of biogas are from waste water of agroindustrial, livestock and cattle waste. The waste water will be sent to anaerobic digestion process to produce raw biogas. Then, it will be kept in storage. However, raw biogas from those anaerobic digesters cannot be used directly as a vehicle fuel, due to its high content of impurities, such as H2S and CO2, and low heating value.

Therefore, the raw biogas needs to be upgraded by sorting out carbon dioxide, hydrogen sulphur and water. Then, the treated or upgraded biogas will sent to a compression unit to increase the pressure before filling up in a CNG trailers and transported to NGV stations.

Currently, there are two models of biogas development using in transport sector in Thailand. example:tapioca starch factory PTT invested in CBG production by using waste water from tapioca starch factory located in Ubon Ratchathani province, the northeastern region. CBG will be delivered to NGV stations nearby. The plant capacity is 17,000 NM3 of raw biogas with the production capacity of 8 tons per day. It is expected to open in the second quarter of 2011. example: swine farm A private company invested CBG production by using waste water from a swine farm in Chiang Mai province, the north region. PTT will purchase CBG that is produced from the waste of pigs and deliver it to NGV users by CNG trailers. The plant capacity is 11,000 NM3 of raw biogas with the production capacity of 6.5

28 January/February 2011 power insider

tons per day. It is expected to open in the fourth quarter of 2011. conclusion: Thailand has been passing through a long journey in developing CNG in the country. At present, we have achieved our initial targets that are to make CNG to be accepted as an alternative fuel for the motorists. Meanwhile, we are finding the suitable technologies to solve the problems of our limited natural gas distribution pipeline network as we have to rely on Mother-Daughter concept.

The main factor that drives NGV market in Thailand is still the oil price. However, the government’s role in setting NGV strategies and policies also determines the NGV direction. It is more important that the actual CNG retail price should be understood and not misled by NGV end users. In addition, the government can let the NGV market mechanism run and drive by itself to create “NGV Market Sustainability”.

Regarding to CNG supply constraint, there should be the determination of NGV usage area coverage in accordance with the existing natural gas facility and infrastructure. However, the limited natural gas pipelines should be replaced with other more cost effective alternative fuels, e.g. biogas, LCNG, etc.

However, the continuous support for private investment in all NGV supply chain can lead to investment distribution to many private parties and knowledge sharing. The knowledge among relevant people in NGV industry will lead to benchmarking and NGV market standard, due to free competition.

Nevertheless, another issue that needs to be concerned is the safety issue. NGV standard must be followed strictly by all parties. Also, the safety standard must be publicized continuously in order for public recognition and concerns.

With thanks to NGV Marketing Department, PTT Public Company Limited , Thailand

THAILAND PROFILE

THAILAND OVERVIEW Thailand is establishing itself as the region’s leader in sustainable energy resources, attracting business investment through innovative polices and a transparent regulatory system.

30 MAY 2010 POWER INSIDER

Today, Thailand is a regional leader in the global search for new, cleaner, and more sustainable energy sources. It follows a global refocusing on renewable energy. In the period between 2004 and 2008, global investment in renewable energy quadrupled, reaching US $155 billion per year. Amazingly, by the end of 2008 investment in renewable and clean energy surpassed global investment in traditional fossil fuels. Clearly the trend of the future is moving away from high-emission coal burning plants, towards low impact and sustainable renewable energy resources.

Thailand was one of the first to understand this shift, and has taken the lead in renewable and sustainable energy management. Innovative polices and a transparent regulatory system enables local entrepreneurs to invest in - and profit from alternative and renewable energy production.

SAFETY IN DIVERSITY In the 1970s approximately 90% of Thailand’s commercial primary energy consumption depended on imported petroleum products. When large deposits of natural gas were later discovered in the Gulf of Thailand, the Kingdom reduced its import dependence to about 60%. While Thailand has discovered more and more oil and gas reserves from the 1980s onwards, these failed to meet the everincreasing domestic demand for commercial energy.

Thus the country’s dependence on imported energy has hovered around 60% since the late 1980s despite the discovery of new resources. Following the rise in the global price of oil in 2008, Thailand’s net energy import costs were US$35.4 billion, equivalent to 6.4% of the nation’s GDP. With about 70% Thailand’s electricity generated

from natural gas, there have been increased concerns that over-reliance on a single source of energy will put the Kingdom at risk. The present incorporation of renewable sources in electricity production has been relatively low: 4.7% from hydropower and 1.4% from Bio-gas. To address these fears, the current government of Abhisit Vejjajiva has called for an increase in renewable energy sources in the Kingdom’s 2010 Power Development Plan.

While still a small percentage of total energy production, investment in renewable energy has brought about a significant increase in the amount of renewable energy produced, up from around 200 Mega Watts (MW ) in 1995 to nearly 1600MW in 2007. Today Thailand leads the region in production of solar energy (6 MW per year) and bio-mass (560 MW per year).

POWER INSIDER JANUARY/FEBRUARY 2011 31

thailand profile Experts agree that renewable energy is the way of the future. But when compared to the energy production costs of dirty fossil fuels, going green is not cheap. It costs US $5 million to produce a single MW of energy from solar panels, US $2 million for a MW of hydro electricity, US $1.8 million for a MW of bio-mass, and $1.2 million for a MW of wind energy. While long-term investment in renewable energy stands to benefit both the environment and the economic development of Thailand, it requires government support. Fortunately, successive governments have provided various incentives to the private sector to join the green energy production cycle.

Thailand’s energy regulaTory auThoriTies The terms “climate change”, “energy security”, “energy diversity”, and “sustainable solutions” encompass a wide spectrum of issues and problems. To help explain this complex and technical issue it helps to look at a specific problem that illustrates wider trends. Energy production in Thailand serves this purpose well, and illustrates the success of clear government regulation when combined with the innovative spirit of the private sector. Yet to understand the contribution of current energy polices, we need to understand Thailand’s energy structure first.

The Kingdom’s energy is supplied by the Electricity Generating Authority of Thailand (EGAT). EGAT owns almost half of the Kingdom’s power generation capacity, all of the transmission systems, and most importantly is the single buyer of all the electricity produced in Thailand. EGAT sells its energy resources to two distribution utilities: the Metropolitan Electricity Authority (MEA) – which provides electricity to consumers in Bangkok and its surrounding areas - and the Provincial Electricity Authority (PEA) – who provides electricity to the rest of the country. All of the electricity produced and sold in Thailand goes through these mechanisms.

Before 1991, not a single private power producer supplied electricity into the national grid. In 1992, the government of Anand Panyarachun approved the Regulation to Purchase Power from Small Power Producers (SPP). Criteria for SPP qualification

32 january/february 2011 power insider

encouraged use of renewable energy sources and rewarded high production efficiency. The SPP program actively promoted investment in small scale privately owned renewable energy production of up to 60 MW, which was later increased to 90 MW. For comparison, Mae Moh in Thailand’s Lampang Province, Southeast Asia’s largest coal-fired power plant, bears a production capacity of 2,625 MW. Initial regulations for SPP had only limited success, and did not take off until 1994. Many of the early projects focused on cogeneration using natural gas and steam for nearby industrial estates. Several bio-fuel projects were implemented across Thailand, utilizing the Kingdom’s robust agriculture resources. Instead of being discarded, organic wastes such as bagasse from sugar mills, used rice paddy husk, and woodchips from paper factories were recycled into renewable fuel.

The 1997 Asian economic crisis reduced Thailand’s demand for energy, which slowed the progress of the SPP program. To further encourage eco-friendly energy production, the Thai government introduced the Very Small Power Producer Program (VSPP) in 2002. The VSPP supported even smaller private

micro-production of energy, feeding up to 10 MW of energy directly into either the MEA or PEA. By producing energy near the source of consumption, the SPP and VSPP programs contributed to lowering transmission costs and waste for EGAT. Bureaucratic uncertainty, confusing regulations, and apprehensive energy suppliers also slowed the progress of both the SPP and VSPP programs. By the end of 2006, there were only about one hundred SPP and VSPP projects supplying 2,344 MW of electricity to Thailand’s national grid. In 2007 after the military coup installed the Surayud Chulanond government, it made several key changes to the SPP and VSPP policies in order to promote the use of renewable energy.

First, the SPP and VSPP regulations were amended to be more “investor friendly”, practical, and transparent. Second, regulations created a financial incentive, called an “adder”, on top of the normal tariffs to encourage SPPs and VSPPs to use renewable energy. The amount of “adder” increases depending on the type of renewable energy being used. For example the “adder” provides an additional 2.5 Baht per Kilo Watt (kWh) of energy produced using municipal waste; 3.5 baht per kWh of wind power; and 8 Baht per kWh produced through solar energy. The new regulations paid smallscale energy producers higher tariffs for feeding electricity into the grid during peak consumption times when most needed.

In order to promote the use of domestic resources and reduce dependence on foreign fuel imports, successive governments have distributed additional loans and expanded investment subsides to support renewable energy projects. The government of Prime Minister Abhisit Vejjajiva approved a 15 year Alternative Energy plan in January 2009, placing national importance on producing renewable energy and providing support for initiatives. Large budgets to provide technical assistance as well as pilot project funding for private investors interested in joining the green energy market have been approved. Further, Thai Ministries have been implementing micro hydro power plants in areas too difficult for the private sector to access, setting a goal of creating 112 MW of new green energy capacity by 2011. Based on the criterion of maintaining a system reliability

‘Thailand is a regional leader in The global search for new, cleaner, and more susTainable energy sources. iT follows a global refocusing on renewable energy.’

level by keeping system reserve margin of around 19.3 percent, a total additional capacity of around 38,000 MW is required. Projected planning over the next fifteen years include; • 13,400 MW of Natural Gas & LNG • 4,640 MW of imported Coal • 4000 MW of Nuclear Power • 81.7 MW of renewable energy • 1,769 MW of Cogeneration, SPP’s/renewable energy easy regulations lead to more investment The essential requirements for successful renewable energy programs include energy prices that reflect production costs; utilization of market forces and incentives; clear rules, regulations, standards, and incentives; competitive markets; and the development of the necessary human capacity. By 2010, Thailand has successfully addressed these requirements.

In order to encourage private sector investment in renewable energy in Thailand, the BOI provides a wide range of incentives. Thai regulations provide 8 years corporate income tax exemption for

manufacturing solar cells, generation of alternative source energy, manufacturing of energy-saving machinery or renewable energy equipment and machinery, and energy service consulting firms who provide consulting services on the use or installation of energy-saving machinery and equipment.

Depending on the location and character of the project, the BOI will also provide a 50% reduction of corporate income tax; exemption or reduction of import duties on machinery; an exemption of import duties on raw materials; land ownership rights for foreign investors and work permit and visa facilitation for foreign experts and technicians. the Future is green Renewable energy can provide Thailand with the energy it needs to fuel its future. As the Kingdom plans its energy security strategy, renewable fuels will play an increasingly important role. Seeking out and developing renewable energy projects will provide a sustainable solution and shore up the Kingdom’s energy security. Government officials, private sector executives, and NGOs all agree on this point. These initiatives are proving that developing renewable

energy in Thailand is not only environmentally friendly but economically fruitful.

For more information on Thai green polices see: • Energy Policy & Planning Office, Ministry of Energy, Thailand.

• VSPP regulations in English.

• Regulations for the Purchase of Power from Very Small Power Producers.

• Application form for Sale of Electricity and System Interconnection.

• Thai legal frameworks governing energy production.

• An emerging light: Thailand gives the go-ahead to distributed energy, Cogeneration & On-Site Power Production Magazine. March/April, 2007.

By Chris Greacen.

• Policy and Regulation on the SPP in Thailand, Phongjaroon Srisovanna, COGEN 3 Chief Country Coordinator (Thailand).

• Thai Net Metering Project.

• Very Small Power Producer (VSPP) Group of Thailand. hen Jinhyuns asian energy investment council www.asianenergy-information.com 33 January/February 2011 power insider

BIOGAS

BIOGAS

Biogas is a proven and widely used source of energy in Asia. There is now yet another wave of renewed interest in biogas due to the increasing concerns of climate change, indoor air pollution and increasing oil prices. Such concerns, particularly for climate change, open opportunities for the use of the Clean Development Mechanism (CDM) in the promotion of biogas.

WHAT IS BIOGAS? Biogas originates from bacteria during the process of bio-degradation of organic materials under anaerobic (without air) conditions. The natural generation of biogas is an important part of the biogeochemical carbon cycle. Methanogens (methane-producing bacteria) are the last link in the chain of microorganisms that degrade organic materials and return the decomposed products to the environment. It is in this step of the biogeothermal carbon cycle that biogas, a source of renewable energy, is generated.

BIOGAS AND THE GLOBAL CARBON CYCLE Each year, some 590-880 million tons of methane are released worldwide into the atmosphere through microbial activity. About 90 percent of the emitted methane derives from biogenic sources, i.e., from

By Sean Stinchcombe

34 JANUARY/ FEBRUARY 2011 POWER INSIDER

the decomposition of biomass. The remainder is of fossil origin (e.g., petrochemical processes). In the northern hemisphere, the present tropospheric methane concentration amounts to about 1.65 ppm.

BIOLOGY OF METHANOGENESIS Knowledge of the fundamental processes involved in methane fermentation is necessary for planning, building and operating biogas plants. Anaerobic fermentation involves the activities of three different bacterial communities. Biogas production also depends on certain specific conditions.

For example, changes in ambient temperature can have a negative effect on bacterial activity.

SUBSTRATE AND MATERIAL BALANCE OF BIOGAS PRODUCTION In general, all organic materials can ferment or be

digested. However, only homogenous and liquid substrates can be considered for simple biogas plants: faeces and urine from cattle, pigs and possibly poultry, as well as wastewater from toilets. When the plant is at capacity, the excrement is diluted with an equal quantity of liquid, such as urine if available.

Waste and wastewater from food-processing industries are only suitable for simple plants if they are homogenous and in liquid forms. The maximum gas-production from a given amount of raw material depends on the type of substrate.

COMPOSITION AND PROPERTIES OF BIOGAS Biogas is a mixture of gases mainly composed of: • Methane (CH4): 40-70 % by volume • Carbon dioxide (CO2): 30-60 % by volume • Other gases: 1-5 % by volume, including:

• Hydrogen (H2): 0-1 % by volume • Hydrogen sulfide (H2S): 0-3 % by volume • Similar to any pure gas, the properties of biogas are pressure- and temperature-dependent. They are also affected by the moisture content and other major factors such as: • Change in volume as a function of temperature and pressure • Change in calorific value as a function of temperature, pressure and water-vapor content • Change in water-vapor content as a function of temperature and pressure • The calorific power of biogas is about 6 kWh/m3 - this corresponds to about half a litre of diesel oil.

• The net calorific value depends on the efficiency of the burners or appliances. Methane is the most valuable component if the biogas is to be used as a fuel.

UTILIZATION The historical evidence of biogas utilization shows independent developments in various developing and industrialized countries. Normally, the biogas produced by a digester can be used as is, the same way as any other combustible gas. It is possible that further treatment or conditioning is necessary, for example, to reduce the hydrogen-sulfide content in the gas. When biogas is mixed with air at a ratio of 1:20 a highly explosive gas forms; therefore, leaking gas pipes in enclosed spaces poses a hazard.

BENEFITS OF BIOGAS TECHNOLOGY Well-functioning biogas systems can yield a range of benefits for users, the society and the environment in general: • Production of energy (heat, light, electricity); • Transformation of organic wastes into high-

quality fertiliser; • Improvement of hygienic conditions through reduction of pathogens, worm eggs and flies; • Reduction of workload, mainly for women, in firewood collection and cooking; • Positive environmental externalities through protection of soil, water, air and woody vegetation; • Economic benefits through energy and fertiliser substitution, additional income sources and increasing yields of animal husbandry and agriculture; • Other economic and eco-benefit through decentralized energy generation, import substitution and environmental protection.

• Biogas technology can substantially contribute to conservation and development, if the concrete conditions are favourable. However, the required high level of investment in capital and other POWER INSIDER JANUARY/ FEBRUARY 2011 35

biogas limitations of biogas technology should also be thoroughly considered.

AffordAbility of biogAs technology An obvious obstacle to the large-scale introduction of biogas technology is the fact that the poorer strata of rural populations often cannot afford the initial investment cost for a biogas plant. This barrier remains despite the fact that biogas systems have proven to be economically sound investments in many cases.

Efforts must be made not only to reduce construction costs, but also to develop credit and other financing mechanisms for biogas technology.

A larger number of biogas operators ensure that, apart from the private user, the society as a whole can benefit from the use of biogas. Financial support from the government can be seen as an investment to curb future costs incurred through the importation of petrol products and inorganic fertilisers, increasing costs for health and hygiene, as well as natural resource degradation. biogAs-fuelled engines Gas demand If the output of a biogas system is to be used for fueling engines, the plant must produce at least 10 m3/day of biogas. For example, to generate 1 kWh of electricity with a generator, about 1.0 m3 biogas is required. Small-scale systems are therefore not suitable as energy suppliers for engines. types of engines The following types of engines are, in principle, wellsuited for operating on biogas: • Four-stroke diesel engines • Four-stroke spark-ignition engines • Converting diesel engines • Converting spark-ignition engines Four-stroke diesel engines A diesel engine draws in air and compresses it at a ratio of 17:1 under a pressure of approximately 3040 mbar and a temperature of about 700􀂁􀂁C. The injected fuel charge ignites itself. Power output is controlled by varying the injected amount of fuel, i.e., the air intake remains constant, which results in a socalled “mixture control”.

Four-stroke spark-ignition engines A spark-ignition engine, or gasoline engine, draws a mixture of fuel (gasoline or gas) and the required amount of combustion air. The charge is ignited by a spark plug at a comparably low compression ratio of between 8:1 and 12:1. Power control is affected by varying the mixture intake via a throttle or charge control.

Four-stroke diesel and spark-ignition engines are available in standard versions with power ratings ranging from 1 kW to more than 100 kW. Less suitable for biogas fuelling are: Loop-scavenging 2-stroke engines in which lubrication is achieved by adding oil to the liquid fuel Large, slow-running (less than 1,000 rpm.) engines that are not built in large series since they are expensive and require complicated control equipment.

Biogas engines are generally suitable for powering 36 January/ february 2011 power insider

vehicles like tractors and light-duty trucks such as pickups and vans. The fuel is contained in 200-bar steel welding-gas cylinders. The technical, safety and energy costs of gas compression, storage and filling are substantial enough to hinder large-scale applications.

Converting diesel engines Diesel engines are designed for continuous operation (10,000 or more operating hours). For this reason they are well-suited for conversion to biogas utilization according to either of the following two methods.

In the dual-fuel approach, the diesel engine remains essentially unmodified, except for the addition of a gas/air mixing chamber on the air-intake manifold, as the air filter can be used as a mixing chamber.

The injected diesel fuel still ignites itself, while the amount injected is automatically reduced by the speed governor, depending on how much biogas is injected into the mixing chamber. The biogas supply is controlled by hand. The maximum biogas intake must be kept below the point at which the engine begins to stutter. If that happens, the governor gets too much biogas and has turned down the diesel intake to an extent that ignition is no longer steady.

Normally, 15-20 percent diesel is sufficient. As much as 80 percent of the diesel fuel can thus be replaced by biogas. Any lower share of biogas can also be used, since the governor automatically compensates with more diesel.

Dual-fuel diesels perform just as well as comparable engines operating on pure diesel. As in normal diesel operation, the speed is controlled by an accelerator lever, and load control is normally controlled by hand, i.e. by adjusting the biogas valve, keeping in mind the maximum acceptable biogas intake level. In the case of frequent power changes at steady speeds, the biogas intake should be somewhat reduced to let the governor decrease the diesel intake without transgressing the minimum diesel intake.

That ensures that speed is kept constant, even in the case of power fluctuations. It is important to note that no diesel engine should be subjected to air-side control.

While special T-pieces or mixing chambers with a volume of 50 to 100 percent of the engine cylinder volume can serve as the diesel / biogas mixing chamber, a proper mixing chamber offers the

advantage of more thorough mixing.

To sum up, conversion according to the dual-fuel method: is a quick and easy do-it-yourself technique; accomodates an unsteady supply of biogas; is well-suited for steady operation, since a single manual adjustment will suffice; requires a minimum share of diesel to ensure ignition Conversion to Spark Ignition (Otto cycle) involves the following permanent modifications to the engine: • Removing the fuel-injection pump and nozzle • Adding an ignition distributor and an ignition coil with power supply (battery or dynamo) • Installing spark plugs in place of the injection nozzles • Adding a gas mixing valve or carburettor • Adding a throttle control device • Reducing the compression ratio (ratio of the maximum to the minimum volume of the space enclosed by the piston) to 11-12 • Converting a diesel engine to a biogasfuelled spark-ignition engine is expensive and complicated. Only pre-converted engines of that type should be procured. Engines with a precombustion or swirl chamber are not suitable for such conversion.

Converting spark-ignition engines Converting a spark-ignition engine for biogas fuelling requires replacement of the gasoline carburettor with a mixing valve (pressure-controlled venturi type or with throttle). The spark-ignition principle is retained, however, should be advanced as necessary to account for slower combustion (approx.

5-10􀂁􀂁 crankshaft angle) and to avoid overheating of the exhaust valve while precluding loss of energy due to still-combustible exhaust gases. The engine speed should be limited to 3,000 rpm for the same reason. As in the case of diesel-engine conversion, a simple mixing chamber should normally suffice for continuous operation at a steady speed. In addition, the mixing chamber should be equipped with a hand-operated air-side control valve for use in adjusting the air/fuel ratio (optimal “actual air volume/stoichiometric air volume” = 1.1).

The conversion of a spark-ignition engine results in a loss of as much as 30 percent of performance.

While partial compensation can be achieved by raising the compression ratio to E=11-12, such a measure also increases the mechanical and thermal load on the engine. Spark-ignition engines that are not explicitly marketed as suitable for running on gas or unleaded gasoline may suffer added wear and tear due to the absence of lead lubrication.

The speed control of converted spark-ignition engines is affected by way of a hand-operated throttle.

Automatic speed control for different load conditions requires the addition of an electronic control device for the throttle.

The conversion of spark-ignition engines is evaluated as follows: • Gasoline engines are readily available in the form of vehicle motors, but their life span amounts to a mere 3,000-4,000 operating hours; • The conversion effort essentially consists of adding a (well-turned) gas mixer.

WÄRTSILÄ® is a registered trademark.

FLEXILIBILITY KEEPS YOU IN CONTROL – ALWAYS. Are you looking for a flexible, always on the spot power solution? A power plant that can run on the cheapest available fuel either at peak load, intermediate, or baseload while maintaining full efficiency? Or be dispatched quicker than any other prime mover in your system and scaled up in size whenever the power need increases?

Maybe your main concern is grid stability and you need a power plant for part-load running and dynamic load following that can be sited at locations to alleviate transmission congestion? Or maybe you need a solution for harnessing waste heat for district cooling or heating? Look no further! Read more about what we can do at wartsila.com.

reduction of the Greenhouse effect Last but not least, biogas technology takes part in the global struggle against the greenhouse effect by reducing the release of CO2 from burning fossil fuels in two ways. First, biogas is a direct substitute for gas or coal for cooking, heating, electricity generation and lighting. Second, the reduction in the consumption of artificial fertiliser avoids carbon dioxide emissions that would otherwise come from the fertiliser-producing industries. By helping to counter deforestation and degradation caused by overusing ecosystems as sources of firewood and by melioration of soil conditions, biogas technology reduces CO2 releases from these processes and sustains the capability of forests and woodlands to act as a carbon sink.

Methane, the main component of biogas is itself a greenhouse gas with a much higher “greenhouse potential” than CO2. Converting methane to carbon dioxide through combustion is another contribution of biogas technology in the mitigation of global warming. However, this holds true only for the case that the material used for biogas generation would otherwise undergo anaerobic decomposition, thereby releasing methane into the atmosphere. Methane leaking from biogas plants without being burned does contribute to the greenhouse effect. Burning biogas also releases CO2. Similar to the sustainable

38 January/ february 2011 power insider

use of firewood, this returns carbon dioxide which has been assimilated from the atmosphere by growing plants. There is no net intake of carbon dioxide in the atmosphere from biogas burning, as is the case when burning fossil fuels. potentials and constraints of inteGrated BioGas systems In spite of the multitude of socio-economic and environmental benefits offered by the Integrated Biogas Systems (IBS), their scaling up as an intervention for sustainable livelihood and poverty alleviation programmes around the world has been rather disappointing, with the exception of a few East Asian countries (China, India, Bangladesh and Nepal). Barriers to the “mainstreaming” of the pilot biogas projects have been associated with the lack of an institutional-enabling policy framework, as well as technical and human capacity.

Whether CDM could provide a timely opportunity for leveraging and strengthening of the institutional, policy, technical and human capacity is the subject of many studies.

IBS offers a clean, low-carbon technology for the efficient management and conversion of agro industrial wastes into a clean, renewable biogas and fertiliser source. The CDM IBS project has the potential to promote sustainable livelihood development (protein

source, clean biogas, and organic fertiliser for food production) as well as for tackling local (land, air and water) and global pollution (reduce methane and nitrous oxide emission). proGramme Goals Since the actual installation of a biogas plant is ultimately the decision of the individual investor, it is important that the programme goals and the organizational environment are conducive to affirmative decisions of the individual. The prerequisites for this must be established at all planning stages by and for all sectors concerned.

A biogas programme which is part of a larger development programme, must harmonize with that of the other departments of the parent programme.

The introduction of biogas as an alternative source of energy affects various sectors, each of which functions within its own specific structural setting. These, of course, vary from one country to another. As a rule, the responsibilities within a biogas programme should be distributed along the lines of existing contacts with the corresponding target groups. If, for example, certain farmers are considered the target group of an information campaign, it would be appropriate to have the Ministry of Agriculture involved in the biogas programme.

With thanks to UNESCAP for information in this article

Turbine Cavitation Diagnostics and Monitoring Based on Korto Multidimensional Technique If you have troubles with cavitation in your turbines, you might be interested in the cases described below.

If you recognize any of the situations as yours, we would like to hear from you and wish to tell you more.

You want to optimize operation of your tubine. You know its efficiency characteristics pretty well, but you also wish to keep cavitation under control. We can supply you with reliable cavitation data such as this on the big Francis unit at Grand Coulee HPP in USA. To do so, we make a test as described on the opposite side of this leaflet. In addition to the global cavitation characteristics such as this, we deliver diagnostic details on cavitation. These show what should be changed in a turbine in order to improve its cavitation performance.

Turbine efficiency

Power distribution

Erosion rate

Erosion rate distribution Power (MW)

Cavitation intensity

You have more units in the plant. You know that, even if considered identical, the turbines might differ in cavitation performance. You wish to quantify this in order to optimize the load distribution and achieve a minimum of the total cavitation erosion.

This example of the six Francis turbines at Burfell HPP in Iceland illustrates these differences. Here, for each of the units, cavitation intensity is shown above turbine power and guide-vane number, which reveals the influence of the position within the spiral casing. On different turbines, the cavitation-threshold power values differ up to 10 %, and the total cavitation intensity 3:1.

Guide vane

Power (MW)

You plan to adjust or re-adjust the cam in your Kaplan turbine, and you wish to know how do the changes in the cam influence cavitation.

Here an example from Kembs HPP in France.

Cavitation intensity

Original cam

Optimized cam

Power (MW)

You wish to check the quality of the internal geometry of your turbine with respect to cavitation. Is the shape of its flow-directing parts good enough? This result of a test on the Kembs turbine points to more pronounced cavitation behind some parts of the spiral casing, and reveals, in these positions, anomalous cavitation on the highest power values.

Operating conditions of your turbine are quite variable. Making tests in all the P conditions would be time-consuming.

S S S S You wish to have your own tool for the online cavitation assessment. For this, we deliver cavitation monitoring systems.

They consist of, typically, 6 cavitation sensors S and one cavitation processor P per unit. Here, Korto multidimensional cavitation monitoring algorithm is implemented in the FPGA/RT technology. Such systems can be used as cavitation channels of a general plant monitoring system or, with addition of one PC per plant, independently.

100

Cavitation intensity

You have a cavitation monitor and wish to quantify the influence of other units on the cavitation in the monitored turbine. Here, such a result for Francis units at Belesar HPP in Spain.

80

One unit in operation

60

40

Two units in operation

20

The cavitation monitors also yield the accumulated cavitation intensity which estimates the accumulated cavitation erosion. This enables predictive maintenance with respect to cavitation.

0 82,5

83

83,5

84

Power (MW)

Korto Cavitation Services Luxembourg

home@korto.com www.korto.com

CAPTAIN OZONE

CAPTAIN OZONE I’M CAPTAIN OZONE. I MADE MY FIRST PUBLIC APPEARANCE AS A CAPED, CLEAN ENERGY CRUSADER ON MARCH 13, 1989. I STARTED ADVOCATING CLEAN ENERGY IN A SYNDICATED COMIC STRIP AND A ROCK MUSIC VIDEO TITLED “THE FLUSH” WHICH I STARRED IN.

40 JANUARY/FEBRUARY 2011 POWER INSIDER

In the 1990’s I appeared in radio, television and movie theatre PSAs that touted the benefits of renewable energy. I also taught kids how to write, direct and star in their own renewable energy television PSAs through the Youth Ecology Program. To view these PSAs on streaming video, Google “Youth Ecology Program PSAs”.

I also organized a Green Power Rally in the United States and Canada on July 31, 2010.

My primary mission is to teach citizens how to be clean energy crusaders just like myself. Creating PSAs and getting them aired on commercial television can be rather costly, but there are many other fun things you can do for FREE to raise public awareness and support for solar, wind, geothermal and hydro power.

Here’s a list of 12 exciting things you can do that don’t take monumental effort which will have largescale impact: BE YOUR OWN TALK SHOW HOST 1) You can produce your own talk show on college radio that crusades for clean energy! Producing your own talk show on college radio is FREE and you can reach thousands of listeners. Radio listeners can call in on your talk show and share their views and comments about clean energy. Producing your own college radio show is fun and easy and some college radio stations allow non-students to produce shows.

2) You can produce your own TV talk show on public access television for FREE that’s in support of renewable energy! Your TV campaign for renewable energy can reach thousands of viewers and public access television offers free classes that teach you how to operate their television broadcast equipment. You can find volunteers through the television station’s classes who have equipment certification to help you produce your own TV talk show.

3) You can podcast your own radio or TV talk show promoting renewable energy on the Internet for FREE using your computer’s microphone or webcam! You can podcast from your own home and reach millions of listeners or viewers across the world.

THE KEYBOARD IS MIGHTIER THAN THE SWORD 4) Write articles that campaign for clean energy and publish them for FREE through independent media websites like Independent Media Center and RINF News.

5) Write letters that are in support of clean energy to the editors of your local newspapers and magazines.

6) Write a letter to your regional power company petitioning them to convert to renewables such as solar, wind, geothermal and hydro power.

7) Write letters to CEOs at oil and automobile companies petitioning them to invest in the research and development of zeroemissions energy.

BE HEARD IN THE BINARY HEAVENS 8) You can create your own MySpace or Facebook webpages that crusade for clean energy and reach thousands of citizens on the Internet! MySpace and Facebook allows you to upload photos and video to your webpages, and it’s all FREE. You can also purchase Internet domain names for as low as $10/year, then create your own websites that advocate renewable energy and have your sites hosted for as low as $25/year.

GREEN YOUR ART 9) If you’re a song writer, painter, film maker, or even a stand-up comedian, you can employ zero-emissions energy themes in your work.

INVEST IN GREEN POWER 10) Companies that manufacture renewable energy systems are growing just as fast as Microsoft did in the 80’s! You can buy stocks in companies that manufacture Green Power systems. Listed below is an example of a few fast growing companies that manufacture wind turbines, hydrogen fuel cells, solar cells and geothermal systems: Vestas is the largest company that manufactures, installs and maintains wind power turbines all over the world.

Ballard Power Systems, Inc. makes a variety of zero-emissions, hydrogen fuel cells for power generation, automotive, and material products.

SunPower Corp. makes high-efficiency photovoltaic cells and solar panels for residential, commercial and power plant applications.

WaterFurnace Renewable Energy, Inc. makes geothermal power systems for home and business use.

GIVE YOUR GREEN 11) You can give your tax-deductible donations to 501(c)(3) non-profit organizations that advocate renewable energy.

SPREAD THE WORD 12) Please copy this page and paste it into an email and forward it to your friends and family. Forwarding this can bring you good luck and some of your friends and family will have fun creating their own clean energy talk shows and websites.

LEARN ABOUT ZERO-EMISSIONS ENERGY SOURCES Before you start your own radio, TV or Internet talk show that advocates renewable energy sources, you must first learn the basics about solar, wind, geothermal and hydro power. A good place to learn about this is the United States Department of Energy’s website at eere.energy.gov.

‘MY PRIMARY MISSION IS TO TEACH CITIZENS HOW TO BE CLEAN ENERGY CRUSADERS JUST LIKE MYSELF.’ POWER INSIDER JANUARY/FEBRUARY 2011 41

OppOrtunities 6 Jan - 10 Jan

npCiL The Nuclear Power Corporation of India invites bid to design, engineer, procure, manufacture, inspect, test, package, deliver to site, erect, construct, commission, trial and hand over the balance of turbine island package for a 700-MW nuclear plant at the Kakrapar Atomic Power Project-3&4. deadline: January 6, 2011 Contact: Senior Manager (Tender Section), Nuclear Power Corporation of India Ltd, Nabhikiya Urja Bhavan, Anushaktinagar, Mumbai-400094, Maharashtra.

Tel: 91-22-25994027 Fax: 91-22-25580741 Cea The Central Electricity Authority invites bids for consulting services for the development of tender procedures and model contracts for the renovation and modernization of fossil fuel-based plants. CEA has applied for grants from the Indo-German Development Cooperation through the KfW Development Bank to fund the assignment. deadline: January 10, 2010 Contact: Rudolf de Millas.

Tel: 49-621-31880002 Fax: 49-621-4185868 email: Rudoif.deMillas@t-online.de nTpC NTPC invites bids for the HT switchgear package for the 1,320-MW Meja Power Project being developed by Meja Urja Nigam Pvt. Ltd, a joint venture between NTPC and Uttar Pradesh state, at Meja in the Allahabad district of Uttar Pradesh state. deadline: January 10, 2011 Contact: Senior Manager, NTPC Ltd., 6th Floor, Engineering Office Complex, A-8A, Sector-24, Noida-201301, Gautam Budh Nagar District, Uttar Pradesh.

Tel: 91-120-331689/ 331671

14 Jan - 15 Jan

nTpC LTd invites bids for the MV switchgears package for the second stage of the Muzaffarpur Thermal Power Project comprising two 195-MW units being developed by Kanti Bijlee Utpadan Nigam Ltd, a joint venture with the Bihar State Electricity Board, at Kanti in the Muzaffarpur district of Bihar state. deadline: January 14, 2011 Contact: Deputy General Manager (CS-1), NTPC Ltd, 6th Floor, EOC Building, A-8A, Sector-24, Noida- 201301, Gautam Budh Nagar District, Uttar Pradesh.

Tel: 91-120-3318657/2410467 Fax: 91-120-2410215

42 January/february 2011 power insider

wiL power Wil Power Projects invites bids for the civil works (package no.1) and hydro-mechanical works (package 2) for the two 2.5-MW units comprising the Jari hydroelectric project. deadline: January 15, 2011 Contact: Wil Power Projects Limited, 217, Industrial Area-A, Ludhiana-141003, Punjab.

Tel: 91-161- 5049222/333 Fax: 91-161-2607407 Email: willpower@woolways.com 17 Jan - 18 Jan

adhunik power Adhunik Power and Natural Resources invites bids for the boiler-turbine generator main plant package for two 270-MW units at its 1,080MW project at Padampur in the SaraikelaKharsawan district of Jharkhand state. deadline: January 17, 2011 Contact: Bikash Mandal-General Manager (Projects), Adhunik Power & Natural Resources Ltd, Crescent Tower, 3rd Floor, 229, AJC Bose Road , Kolkata-700030, West Bengal.

Tel: 91-33- 30915300 Fax: 91-33-30915344 email: bikashmandal@adhunikgroup.co.in nTpC LTd NTPC Ltd invites bids for the engineering, procurement and construction contract for the 8-megawatt Singrauli small hydroelectric power project comprising two 4-MW units on the outfall discharge channel of the Singrauli thermal power plant in the Sonebhadra district of Uttar Pradesh state. deadline: January 17, 2011 Contact: Senior Manager (CS-1)/Senior Engineer (CS-1), NTPC Ltd, Sixth Floor, Engineering Office Complex, Plot A-8A, Sector-24, Noida-201301, Uttar Pradesh.

Tel: 91-120-3318659/3318663 nTpC LTd NTPC Ltd invites bids for the steam generator with electrostatic precipitator package for the 500-MW fifth stage of the Vidhyachal Super Thermal Power Project at Vindhyanagar in the Singrauli district of Madhya Pradesh state. deadline: January 18, 2011 Contact: Deputy General Manager (CS-IV), NTPC Ltd, 6th Floor, Engineering Office Complex, A-8A, Sector-24, Noida- 201301, Uttar Pradesh.

Tel: 91-120-2316695/3318621 Fax: 91-120-2410295 20 Jan - 21 Jan

spG Spectrum Power Generation invites bids to act as main equipment contractor for the 350-megawatt first phase of its gas-fired, combined-cycle project at Komargagir in the East Godavari district of Andhra Pradesh. deadline: January 20, 2011 Contact: K. Satish, Whole time Director, Spectrum

Power Generation Ltd, Plot No.231, 8-2293/82/A/231, 3rd Floor, Road No.35, Jubilee Hills, Hyderabad-500033, Andhra Pradesh.

Tel: 91-40-23555725/26 Fax: 91-40-23555730; email ; tenders@spgl.co.in GMr (BadrinaTh) GMR (Badrinath) Hydro Power Generation invites bids for the hydro-mechanical packagelot 4 for the 300-megawatt Alaknanda hydroelectric project in the Chamoli district of Uttarakhand state. Oportunities Hyderabad-500034, Andhra Pradesh.

Tel: 91-40-30514444 Mobile: 91-958-1412673 Fax: 91-40-23327919 email: bsrao@nsindia.com hppC The Himachal Pradesh Power Corporation is inviting consultants to offer to prepare the feasibility report and the bankable detailed project report as well as to provide assistance in arranging the techno-economic approvals needed from the authorities for the 520-megawatt (MW) Nakthan, 141-MW Thana Plaun, and 78-MW Beri Nichli hydroelectric power projects. The latter two projects will require a separate proposal. deadline: January 21, 2011 Contact: General Manager (Contracts), Himachal Pradesh Power Corporation Limited, Shanti Kutir, Kamna Nagar, Chakkar, Shimla-171005 Himachal Pradesh.

Tel: 91-177-2832513, Fax: 91-177-2832307 email: hppc.contracts@gmail.com 27 Jan - 1 FeB

GMe ChhaTTisGarh GME Chhattisgarh Energy invites bids for the 64-kilometer, 400-kilovolt line from the 1,370MW Raykheda plant to Powergrid’s substation at Raipur/Durg in Chhattisgarh state. deadline: January 27, 2011 Contact: Vice President (Transmission), GMR Energy Ltd, Bangalore. aCCord enerGy Accord Energy invites bids for the engineering, procurement and construction/boiler, turbine and generator/balance of plant contracts for two 150-MW (+/-5%) coal-fired units at Gummidioondi near Chennai. deadline: January 31, 2011 Contact: Vice Chairman, Accord Energy Corporation India Private Limited, 1st Floor, 29, Tilak Street , Thyagaraya Nagar, Chennai-600017, Tamil Nadu.

Tel: 91-44-28346504-08 Fax: 91-44-283421752 email: accordenergy@gmail.com

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Early Bird Early Discounts Early Bird Bird Discounts available until Discounts available 18 Marchuntil 2011 available until 18 March 18 March 2011 2011

Outlining Asia’s Strategies for Efficient Smart Grids, Aligning Technological Innovations withStrategies Requirements and Effective Engagement Outlining Asia’s for Efficient SmartCustomer Grids, Aligning Technological Outlining Asia’s Strategies for Efficient Smart Grids, Aligning Technological Innovations with Requirements and Effective Customer Engagement Innovations with and Effective Customer Engagement  Main Conference: 25 & Requirements 26 May, 2011  Post-Conference Workshops: 26 & 27 May, 2011  City: Singapore  Main Conference: 25 & 26 May, 2011  Post-Conference Workshops: 26 & 27 May, 2011  City: Singapore  Main Conference: 25 & 26 May, 2011  Post-Conference Workshops: 26 & 27 May, 2011  City: Singapore

Featuring The Following Experts: Featuring Following Experts: Featuring The The Following Experts: Dr. Rahul Tongia Program Director Dr. RahulFOR Tongia CENTRE STUDY OF Dr. Rahul Tongia Program Director SCIENCE, TECHNOLOGY AND Program Director CENTRE FOR STUDY OF POLICY, INDIA CENTRE STUDY OF AND SCIENCE,FOR TECHNOLOGY SCIENCE, TECHNOLOGY AND POLICY, INDIA POLICY, INDIA Shoaib Yousuf Information Security Shoaib Yousuf Strategist Shoaib Yousuf Information Security COUNTRY ENERGY, Information Security Strategist AUSTRALIA Strategist COUNTRY ENERGY, COUNTRY AUSTRALIAENERGY, AUSTRALIA Uday Kale Vice President Uday KaleENERGY, INDIA RELIANCE UdayPresident Kale Vice Vice President RELIANCE ENERGY, INDIA RELIANCE ENERGY, INDIA

Future Grids Asia is different – Why? Future Grids Asia is different – Future Grids Asia is different – Why?  Exclusive sessions on one of the most sensitive Why?           

yet overlooked part on of the Exclusive sessions oneSmart of the Grid most sensitive Exclusive sessions on one of the Grid most sensitive implementation chain Customer Engagement yet overlooked part of –the Smart yet overlooked part of the Smart Grid implementation chain – Customer Engagement For the first time ever, Future Grids Asia will implementation chain – Customer Engagement involve visualise theirAsia inevitable For the the firsttelecoms time ever,toFuture Grids will For first timeGrid ever,future Grids will role the in the Smart involve the telecoms toFuture visualise theirAsia inevitable involve theSmart telecoms to visualise their inevitable role in the Grid future A refreshing speaker line up representing 10 role in the Smart Grid future different countries fromline Asiaup representing 10 A refreshing speaker A refreshing speaker line 10 different countries from Asiaup representing Engrossing panel discussions and workshops different countries from Asia on shaping the Smart Grid futureand workshops Engrossing panel discussions Engrossing panel discussions on shaping the Smart Grid futureand workshops on shaping the Smart Grid future

Attending Future Grids Asia 2011 will enableFuture you to:Grids Asia 2011 Attending Attending Future Grids Asia 2011 will enable you  Gain an insight into to: the importance and the will enable you to:           

strategies of designing implementing a Gain an insight into the and importance and the Gain an insight into grid the and importance and cost efficient smart in adherence to the market strategies of designing implementing a strategies of designing implementing a specific regulations cost efficient smart gridand in adherence to market cost efficient smart grid in adherence to market specific regulations Learn from case studies and listen to updates specific regulations from key players Smartand Gridlisten implementation Learn from case in studies to updates Learn from case studies to updates projects from around the and world from key players in Smart Gridlisten implementation from key players in Smart Grid implementation projects from around the Foresee and visualise theworld upcoming projects from around the world technologies the role the Foresee and and visualise theof upcoming Foresee and visualise the upcoming telecommunication industry technologies and the role of the technologies and the role of the telecommunication industry Network with decision makers from the Asian telecommunication industry utilities, governments, policy makers, telecoms Network with decision makers from the Asian Network withproviders decisionpolicy makers from the Asian and solution utilities, governments, makers, telecoms utilities, governments, policy makers, telecoms and solution providers and solution providers

Kyo Dong Kim CEO Kyo Dong KimGRID KOREA SMART Kyo Dong Kim CEO INSTITUTE CEO KOREA SMART GRID KOREA SMART GRID INSTITUTE INSTITUTE Peter Cook Vice President Peter Cook STARHUB, SINGAPORE Peter Cook Vice President Vice President STARHUB, SINGAPORE STARHUB, SINGAPORE Chan Eng Kiat Project Director Chan Eng Kiat ENERGY MARKET Chan Eng Kiat Project Director AUTHORITY, SINGAPORE Project Director ENERGY MARKET ENERGY MARKET AUTHORITY, SINGAPORE AUTHORITY, SINGAPORE

PLUS! REGISTER FOR BENEFICIAL WORKSHOPS ON PLUS! REGISTER FOR PLUS! REGISTER FOR BENEFICIAL WORKSHOPS ON BENEFICIAL ON a security assurance A How to build WORKSHOPS

lifecycle for AMI systems A How to build a security assurance to buildAMI a security assurance A How systems Tahirlifecycle Saleem for lifecycle for AMI systems Senior Information Technology Auditor Tahir Saleem KAHRAMAA, QATAR Tahir SeniorSaleem Information Technology Auditor Senior Information Technology Auditor KAHRAMAA, QATAR B How to engage KAHRAMAA, QATAR customers effectively in a Smart Grid deployment strategy, to engage customers gains effectively B How evaluating the customers’ from a to engage customers effectively B How in a Smart Grid deployment strategy, smarter grid and ensuring an ROI in a Smart Grid deployment strategy, evaluating the customers’ gains from a without overlooking the customers evaluating the customers’ from a smarter grid and ensuring gains an ROI smarter grid and ensuring an ROI without overlooking the customers Dr. Rahul Tongia without overlooking the customers Program Director Dr. Rahul Tongia CENTRE FOR STUDY OF SCIENCE, Dr. RahulDirector Tongia Program TECHNOLOGY AND POLICY, INDIA Program CENTREDirector FOR STUDY OF SCIENCE, CENTRE FOR STUDY OF SCIENCE, TECHNOLOGY How to getAND the POLICY, present INDIA systems, TECHNOLOGY POLICY, INDIA C processes AND and personnel ready for the How to get the present systems, C future?

How to getand the personnel present systems, ready for the C processes processes and personnel ready for the future?

Shoaib Yousuf future?

Information Security Strategist Shoaib Yousuf COUNTRY ENERGY, AUSTRALIA Shoaib Yousuf Information Security Strategist Information Strategist COUNTRY Security ENERGY, AUSTRALIA COUNTRY AUSTRALIA Future ENERGY, Grids Asia is the first of its kind

““

involving telecoms in aofutility Future Grids Asia islike theusfirst its kind Future Grids Asia is the first its kind oriented conference for the involving telecoms like us in Asian aofutility involving telecoms like us in a utility market.

This is a must attend not oriented conference for the Asianonly for oriented conference the Asian the utilities but theforother stakeholders market.

This is aformust attend not only for market.

Thisbut isasafor must attendstakeholders not only for like telecoms well. the utilities the other the utilities but for the other stakeholders like telecoms as well.

Sanjeev Aggarwal , Vice President, like telecoms as well.

””

TULIP TELECOM, INDIA Sanjeev Aggarwal , Vice President, Sanjeev Aggarwal , Vice President, TULIP TELECOM, INDIA TULIP TELECOM, INDIA

Other Experts Include: Other Experts V Other Arunachalam Experts Include: Include: Additional Director

Arunachalam Project Manager V – BESCOM Arunachalam V Additional Smart GridDirector Pilot Additional Director Project Manager – BESCOM CENTRAL POWER Project Manager – BESCOM Smart Grid Pilot RESEARCH INSTITUTE, INDIA Smart Grid Pilot CENTRAL POWER CENTRAL POWER RESEARCH INSTITUTE, INDIA Eugene Toh RESEARCH INSTITUTE, INDIA Deputy Director Eugene Toh ENERGY MARKET Eugene Toh Deputy Director AUTHORITY, SINGAPORE Deputy Director ENERGY MARKET ENERGY MARKET AUTHORITY, SINGAPORE Tahir Saleem AUTHORITY, SINGAPORE Senior Information Technology Tahir Saleem Auditor Tahir Saleem Senior Information Technology KAHRAMAA, QATAR Senior AuditorInformation Technology Auditor KAHRAMAA, Jose RonaldQATAR KAHRAMAA, QATAR Head of Regulations Jose Ronald MERALCO, PHILIPPINES Jose Ronald Head of Regulations Head of Regulations MERALCO, PHILIPPINES Suroso Isnandar MERALCO, PHILIPPINES System Planning Engineer Suroso Isnandar INDONESIA PT PLN PERSERO, Suroso Isnandar System Planning Engineer System Engineer PT PLN Planning PERSERO, INDONESIA Moazzem Hossain PT PLN PERSERO, INDONESIA Manager, Operation Planning and Moazzem Hossain Studies Department/ Head of Moazzem Hossain Manager, Operation Planning and Distribution Management System Manager, Operation Planning Studies Department/ Head of and ABU DHABI DISTRIBUTION Studies Department/ Head of Distribution Management System COMPANY Distribution System ABU DHABIManagement DISTRIBUTION ABU DHABI DISTRIBUTION COMPANY Sanjeev Aggarwal COMPANY Vice President Sanjeev Aggarwal TULIP TELECOM, INDIA Sanjeev Aggarwal Vice President Vice President TULIP TELECOM, Pradeep Kumar INDIA Dadhich TULIP TELECOM, INDIA Senior Fellow Pradeep Kumar THE ENERGY AND Dadhich Pradeep Kumar Dadhich Senior Fellow RESOURCES INSTITUTE, INDIA Senior Fellow THE ENERGY AND THE ENERGY AND RESOURCES INDIA Chen ShiunINSTITUTE, RESOURCES INSTITUTE, INDIA Head – Research and Development Chen Shiun SARAWAK ENERGY, MALAYSIA Chen Head – Shiun Research and Development Head – Research and Development SARAWAK ENERGY, MALAYSIA Victor Sitorus SARAWAK ENERGY, MALAYSIA System Planning Engineer Victor Sitorus PT PLN PERSERO, INDONESIA Victor Sitorus System Planning Engineer System Planning PT PLNJoo PERSERO, INDONESIA Dong KangEngineer PT PLNGrid PERSERO, INDONESIA Smart Researcher Dong Kang KOREAJoo ELECTROTECHNOLOGY Dong Joo Kang Smart Grid Researcher INSTITUTE Smart Researcher KOREAGrid ELECTROTECHNOLOGY KOREA ELECTROTECHNOLOGY INSTITUTE Halim Bin Osman INSTITUTE General Manager – HalimManagement Bin Osman Asset Halim Bin Osman General Manager – TNB DISTRIBUTION, General Manager – MALAYSIA Asset Management Asset Management TNB DISTRIBUTION, MALAYSIA SPONSOR: RESEARCHED &MALAYSIA DEVELOPED BY: TNB DISTRIBUTION, SPONSOR: SPONSOR:

RESEARCHED & DEVELOPED BY: RESEARCHED & DEVELOPED BY:

T: (65) 6722 9388 | F: (65) 6720 3804 | E: enquiry@iqpc.com.sg | W: www.futuregridsasia.com T: (65) 6722 9388 | F: (65) 6720 3804 | E: enquiry@iqpc.com.sg | W: www.futuregridsasia.com T: (65) 6722 9388 | F: (65) 6720 3804 | E: enquiry@iqpc.com.sg | W: www.futuregridsasia.com

OppOrtunities NikkaNti Power Nikkanti Power seeks lump-sum offers for the engineering, procurement and construction contract for the two 30-MW units comprising its IPP project at Krishnapatnam in the Nellore district of Andhra Pradesh state.

Deadline: January 31, 2011 Contact: Director and Head, Nekkanti Power Private Limited, Plot #322, Road #25, Jubilee Hills, Hyderabad-500033, Andhra Pradesh. t el: 91-40-65740261 Fax: 91-40-2331168 email: management@nekkantipower.com NtPC LtD NTPC Ltd invites bids for the instrumentation cablespackage for the second stage of the Muzaffarpur thermal project comprising two 195-MW units at Kanti in the Muzaffarpur district of Bihar state.

Deadline: January 31, 2011 Contact: Deputy General Manager (CS-1)/Engineer (CS-1), NTPC Ltd, Sixth Floor, Engineering Office Complex, Plot A-8A, Sector-24, Noida-201301, Uttar Pradesh. tel: 91-20- 3316637/3318662 UNiversaL CresCeNt Power Universal Crescent Power invites bids for the engineering, procurement and construction contract for the 1,320-MW first stage of the Sagar super-thermal project comprising two 660-MW units at Nayachar Island on the Hooghly River in the East Midnapur district of West Bengal state. The contract includes construction of the captive coal jetty.

Deadline: February 1, 2011 Contact: Director (Technical), Universal Crescent Power Private Limited, 5th Floor, Tower C, Green Boulevard , B-9A, Sector 062, Noida-201302, Uttar Pradesh.

Tel: 91-120-4516900 Fax: 91-120-4516999 7 Feb - 15 Feb

bajaj HiNDUstHaN Bajaj Hindusthan invites bids for the balance of plant package for a 1,980-MW coalbased project comprising three 660-MW supercritical units in the Lalitpur district of Uttar Pradesh state.

Deadline: February 7, 2011 Contact: D.L. Narasimham, Bajaj Hindusthan Ltd, Bajaj Bhavan, B-10, Sector-3, Jamnalal Bajaj Marg, Noida- 201301, National Capital Region. tel: 91-120-4045100 Fax: 91-120-2543949 Email: dinar@bajajhindustan.com PowergriD The Power Grid Corporation of India Limited invites bids for (i) the substation package-P248-5501 for the 765/400-kilovolt Champa substation associated with the transmission system needed for IPP projects 44 January/february 2011 Power iNsiDer

in Chhattisgarh state, and (ii) the extension of the 400-kV Champa substation under consultancy services to Lanco Power, Bharat Aluminium and Vandana Vidyut Ltd. Deadline: February 14, 2011 Contact: Deputy General Manager/Chief Manager (CS-G3), Power Grid Corporation of India Ltd, Saudamini, Plot No.2, Sector-29, Gurgaon-122001, Haryana. tel: 91-124-2571700-19-extension 2399/2356 Fax: 91-124-2571831 NsL NagaPatNam Power NSL Nagapatnam Power invites bids for the boiler-turbinegenerator package for the 1,320-MW first stage comprising two 660-MW units at the 2,640-MW coal-fired project at Thalanchaokadu in the Sirkazhi district of Tamil Nadu state.

Deadline: February 15, 2011 Contact: B.S. Rao, General Manager, NSL Nagapatnam Power and Infratech Private Limited, NSL ICON, 4th Floor #8-2-684/2/A, Road No.12, Banjara Hills, NtPC LtD NTPC invites bids for the extended coalhandling plant package for the Pakri Barwadih coal mining block in the Hazaribagh district of Jharkhand state.

Deadline: February 15, 2011 Contact: Deputy General Manager (Contract Services/ IV) Manager (Contract Services/IV), NTPC Ltd, 6th Floor, Engineering Office Complex, A-8A, Sector-24, Noida-201301, Uttar Pradesh. tel: 91-120-2410552/3318617 20 Feb- 22 Feb

wbPDC West Bengal Power Development Corporation invites bids for the supply and installation of the main plant (boiler, turbine, generator) in the renovation and modernization of the 210- MW No.5 unit at the Bandel thermal power station.

Deadline: February 20, 2011 Contact: Director (Projects), West Bengal Power Development Corporation Limited, Bidyut Unnayan Bhaban, 3/C, LA-Block, Sector-111, Bidhannagar, Kolkata-700098, West Bengal tel: 23393199 Fax: 23393186 NtPC LtD NTPC Ltd invites bids for the power cables package for the second stage of the Muzaffarpur thermal project comprising two 195-MW units at Kanti in the Muzaffarpur district of Bihar state.

Deadline: February 22, 2011 Contact: Deputy General Manager (CS-1)/Engineer (CS-1), NTPC Ltd, Sixth Floor, Engineering Office Complex, Plot A-8A, Sector-24, Noida-201301, Uttar Pradesh. tel: 91-20- 3316637/3318662

24 Feb - 28 Feb

mseDC The Maharashtra State Electricity Distribution Company invites bids for a distribution franchisee for the Shil-Mumbra-Kalwa subdivision under the Thane Urban Circle Deadline: February 24, 2011 Contact: Principal Consultant (DF), Maharashtra State Electricity Distribution Company Ltd, Prakashgad, 4th Floor, Prof. Anant Kanekar Marg, Bandra (E), Mumbai-400051. tel: 91-22-26581476 Fax: 91-22-26581476 email: pcdf@mahadiscom.in oPgC The Orissa Power Generation Corporation is tendering the main plant package for two 660-MW supercritical coal-fired units at the Ib power station. The two sets will comprise the No.3 and No.4 units at the power plant at Banharpali in the Jharsuguda district of Orissa state.

Deadline: February 28, 2011 Contact: Orissa Power Generation Corporation Ltd, 7th Floor, Fortune Towers, Chandrasekharpur, Bhubaneswar, Orissa-751023. tel: 91-674-2303765/66 Fax: 91-674- 2303755/56 email: mainplantpackage@opgc.co.in 15 mar- 31 mar

NsL NagaPatNam Power NSL Nagapatnam Power invites bids for the balance of plant package for the 1,320MW first stage comprising two 660-MW units at the 2,640-MW coal-fired project at Thalanchaokadu in the Sirkazhi district of Tamil Nadu state.

Deadline: March 15, 2011 Contact: B.S. Rao, General Manager, NSL Nagapatnam Power and Infratech Private Limited, NSL ICON, 4th Floor #8-2- 684/2/A, Road No.12, Banjara Hills, Hyderabad-500034, Andhra Pradesh. tel: 91-40-30514444; mobile: 91-958- 141267Fax: 91-40-23327919 email: bsrao@nsindia.com NoiDa Power Noida Power, a joint venture between the Greater Noida Industrial Development Authority and RPG Group, which is a distribution licensee for the Greater Noida township area in Uttar Pradesh state near New Delhi, invites turnkey bids through a two-part bidding process for a 400-MW (+/-10%) gasbased combined-cycle plant.

Deadline: March 31, 2011 Contact: Gautam Ghosh, General Manager, Noida Power Company Ltd, Commercial Complex, Block-H, Sector Alpha- 11, Greater Noida City, Gautam Budh Nagar District, Uttar Pradesh. tel: 91-120-2326559/60/61 Fax: 91-120-2326448 email: sarnathganguly@noidapower.com

27-29 SEPTEMBER 2011 KLCC, KUALA LUMPUR, MALAYSIA WWW.POWERGENASIA.COM

DIVERSE SOLUTIONS FOR THE REGION’S POWER INDUSTRY CHALLENGES

CALL FOR PAPERS

FOR EXHIBITION AND SPONSORSHIP OPPORTUNITIES CONTACT:

FOR INFORMATION ABOUT PARTICIPATING IN THE CONFERENCE CONTACT:

Kelvin Marlow Exhibit Sales Manager T: +44 (0) 1992 656 610 C: +44 (0) 7808 587 764 F: +44 (0) 1992 656 700 E: exhibitpga@pennwell.com

Mathilde Sueur Conference Manager T: +44 (0) 1992 656 634 F: +44 (0) 1992 656 700 E: paperspga@pennwell.com

OWNED AND PRODUCED BY:

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ABSTRACT SUBMITTAL DEADLINE: 18TH FEBRUARY 2011

You are invited to submit an abstract for consideration by the POWER-GEN Asia Advisory Committee for the 2011 conference programme.

Call for Papers Topics: • Track 1 - Trends, Finance and Planning • Track 2 - Environmental Challenges, Fuel Options, Power Grid & Distributed Generation • Track 3 - Power Plant Technologies • Track 4 - Operation, Optimization & Servicing • Track 5 - Nuclear Power For full track topic details, guidelines and requirements or to submit your abstract visit www.powergenasia.com.

CO-LOCATED WITH:

EvEnts listing January 2011 11 JAn - 12 JAn

ppp Middle eAst Hilton Hotel, Abu Dhabi, United Arab Emirates. organisers: BME Global Ltd email: info@ppp-middleeast.com Url: www.ppp-middleeast.com 17 JAn - 18 JAn

eight AnnUAl ConferenCe on hydro power in indiA The Imperial, New Delhi , New Delhi , India. organisers: India Infrastructure Publishing Pvt. Ltd email: abira.ghosal@indiainfrastructure.com Url: www.indiainfrastructure.com

organisers: IQPC email: enquire@iqpc.co.uk Url: www.nuclearnewbuildevent.com 25 JAn - 26 JAn

sCAdA AsiA 2011 Intercontinental Grand Stanford, Hong Kong, Hong Kong. organisers: IQPC email: enquiry@iqpc.com.sg Url: www.scadasummit.com energy Asset seCUrity sUMMit 2011 TBC, Sharm El Sheikh, Egypt. organisers: Arena International Events Group email: kate.czech@arena-international.com Url: www.arena-international.com

19 JAn - 21 JAn

synergistiC sUpergrid for trAnsMitting energy overseAs 2011 TBC, London, England, United Kingdom. organisers: InnoQube Ltd email: info@inno-qube.com Url: www.worldconferences.co.uk nUCleAr new BUild ventUres Hotel Le Plaza, Brussels, Belgium.

February 2011 10 feB - 12 feB

22 feB - 24 feB

energy & environMent 2011 Pragati Maidan, New Delhi, Delhi, India. organisers: Confederation of Indian Industry (CII) email: afganullah@cii.in Url: www.ietfindia.in

fAstener fAir - stUttgArt 2011 Messe Stuttgart, Stuttgart, BadenW端rttemberg, Germany. organisers: Mack Brooks Exhibitions Ltd. email: info@fastenerfair.com Url: www.fastenerfair.com

10 feB - 11 feB

towArds eleCtriCity infrAstrUCtUre for A CArBon neUtrAl eUrope Palais des Beaux-Arts (Bozar), Brussels, Belgium. organisers: ENTSO-E email: secretariat@entsoe-event.eu Url: www.entsoe-event.eu 8 JUn - 10 JUn

22 feB - 24 feB

drilling flUids And CUttings MAnAgeMent AsiA 2011 TBC, Bangkok, Thailand. organisers: Center for Energy Sustainability and Economics email: drillingfluids@arcmediaglobal.com Url: www.arcmediaglobal.com

13 feB - 16 feB

nhA hydrogen ConferenCe & expo 2011 Gaylord National Hotel & Conference Center, National Harbor, Maryland, USA. organisers: National Hydrogen Association email: kahne@hydrogenassociation.org Url: www.hydrogenconference.org

23 feB - 24 feB

trAde And export finAnCe AsiA 2011 Carlton Hotel, Singapore, Singapore. organisers: IQPC email: enquiry@iqpc.com.sg Url: www.tradeandexportfinanceasia.com 28 feB - 1 MAr

15 feB - 16 feB

UnConventionAl oil & gAs eUrope TBC, Prague, Czech Republic. organisers: PennWell email: attendinguoge@pennwell.com Url: www.unconventionaloilandgaseurope.com

Advertiser index Wartsila

Pages 2, 37

shUtdowns And tUrnAroUnds forUM 2011 Ardoe House Hotel, Aberdeen, Scotland, United Kingdom. organisers: Oil and Gas IQ email: andrew.reeve@iqpc.co.uk

Korto

Page 39

Future Grids Asia

Page 43

Tempress

Page 4

Metro-cis

Page 15

Powergen Asia

Page 45

Enerproject

Page 19

SET

Page 47

Sulzer

Page 25

Sapa

Page 48

GEA Heat Exchangers

Page 29

46 JAnuAry/FEbruAry 2011 power insider

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