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Issue 307

12May2015

Week 19

Indias coal reform efforts

Coal India is to build its own power plants, but Indias power and coal sectors
need more fundamental reform

Solar comes of age in Japan

The solar market has reached maturity in Japan, with 25,000 MW of capacity
and lower subsidies. Yet grid connections must be improved to maintain
investment levels

Environmental risks

Standard Chartered has abandoned Adani Groups Carmichael coal project in


Australia because of environmental risks

Uranium deal

Australia could agree to export uranium to India as New Delhi becomes an


accepted member of the global nuclear fuel market

COMMENTARY

Indias coal reform efforts

Solar comes of age in Japan

THERMAL

Thailands Global Power Synergy


targets growth abroad

NTPC to build 4,000-MW TPP


in Jharkhand

Hitachi unit to establish power plant


service JV in Thailand

Black & Veatch selected for Vietnam


power plant expansion
COAL

7
8

Standard Chartered walks away from


Adanis Carmichael project

China cuts coal investment

NUCLEAR

Australia to sell uranium to India

Japans ageing Mihama NPP moves


closer to restart

RENEWABLES

10

Philippines bids on 21 geothermal,


hydro sites
NEWS IN BRIEF

10
10

AsiaElec

12 May 2015, Week 19

page 3

COMMENTARY

Indias coal reform efforts


CIL has heralded plans to build its own power plants, but more fundamental reform of the
coal and power sectors is required if India is to be able to meet demand
By Graham Lees
CIL aims to build its first TPP, a 1,600-MW coal-fired, mine-mouth project in the eastern Mahanadi Basin
Indias coal shortages could offer and export opportunities for a US coal industry facing a coal surplus
India needs to move from a command and control coal sector to a more liberalised market
Advanced plans by Indias lumbering
state-owned giant Coal India Ltd (CIL)
to venture into power generation are
another sign that Prime Minister
Narendra Modis government is intent on
shaking up the countrys power sector.
In a roundabout way it might also be
good news for the US, where one
economist thinks Indias growing hunger
for energy could save the US coal
industry.
CIL is planning to develop its first
thermal power plant (TPP), a 1,600-MW
coal-fired, mine-mouth project, in the
eastern Mahanadi Basin.
The plant is CILs move into
generation, although it has plans to
develop more pithead power plants in the
future.
CILs prospects
CIL has been talking about moving into
power generation for some years, with a
focus on TPPs adjacent to its coal mines
that poor transport links to power plants
elsewhere.
But Indias bureaucratic hurdles,
notably bad at state-controlled CIL, have
delayed affirmative action, until now.
Impetus for developing the first CIL
plant is coming from the Delhi municipal
government, which wants to invest in the
project in return for guaranteed
electricity supply to meet rising power
demand in the capital.
CIL first proposed building minemouth power plants in 2008 as a costeffective way of exploiting underused
coal reserves.
CILs big problem is that it continues
to fail to meet coal production targets to

aid Indias overall power generating


expansion. It is because of this that India
is forecast by various analyses to
overtake China within the next two years
as the worlds biggest coal importer.
Coal fuels more than 60% of Indias
260,000 MW of generating capacity.
Indian reformers blame a continuing
culture of bureaucracy and overregulation for holding back the countrys
coal production and electricity generating
growth.
Analyst and commentator Sunjoy Joshi
said this week that the countrys coal and
power sectors had a long way to go to
achieve real market reform despite recent
efforts by the Modi government.
Bureaucracy continues to proliferate,
Joshi, the director at the New Delhi
think-tank Observer Research
Foundation, wrote in the Times of India
on May 12.
US chance
Ironically, this might be good news for a
US coal industry which is nose-diving,
one US economist thinks.
With grievous losses posted by such
major stock exchange corporations as
Peabody and Arch Coal, it would seem
that Americas super-abundant coal
reserves are headed for extinction,
syndicated business newspaper columnist

Coal India Ltd has failed


to keep pace with demand
growth, which has
increased the need for
imports

Morris Beschloss wrote last week.

China, previously the largest and


most voluminous importer of American
coal, has markedly slowed down imports
in general. But, just in time, Indias rapid
growth is coming to the rescue. As the
worlds second largest coal consumer,
India is taking full advantage of the
slump in world coal prices, Beschloss
said.
US coal stocks are at high levels as
local industry turns to shale gas and the
world market is well supplied, Platts
said.
Even though Indias coal reserves in
the ground are among the largest in the
world, state-owned Coal India Ltd has
failed to keep pace with demand growth,
which has increased the need for
imports, Beschloss noted.
However, US coal companies would
have to pitch their prices pretty low to
compete successfully with Indias
imports from South Africa, Indonesia
and even Australia.
There is always the possibility that
Chinas coal sector might start flooding
the regional market with coal as a means
of getting out of the financial mess they
are in.
The magnitude of the US coal export
problem is illustrated by Indonesias
free-on-board (FOB) export price for this
month slumping to a record low of
US$61.08 per tonne, Indonesias
Ministry of Energy and Mineral
Resources disclosed on May 11. That
price is over 5% lower than for April and
17% down on the May 2014 price.

Have a question or comment? Contact the editor Richard Lockhart (richardl@newsbase.com)


Copyright 2015 NewsBase Ltd.
All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All
reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents

AsiaElec

12 May 2015, Week 19

page 4

COMMENTARY

CIL failed to reach a government-set


target of 507 million tonnes of
production for the financial year ending
March 31 because of what it termed
operational delays.
CILs managing director, Sutirtha
Bhattacharya, blamed state government
administrative problems, euphemism for
transport bottlenecks, contract problems
and difficulties in securing
environmental clearances for new mining
projects.
Reform challenge
It is these sorts of problems that look
likely to continue to hamper not only CIL
but also Prime Minister Modis overall
promise to streamline the energy sector

and bring grid electricity to the hundreds


of millions of Indians at present beyond
its reach.
Joshi, a former senior energy civil
servant, said true reform vision would
need hard work to institute long-term
policies that firmly establish vibrant coal
markets in the country, not [one] captive
to the patronage of quotas and
allocations.
The challenge of achieving a major
expansion of coal-fuelled power plants
across India goes beyond persuading the
private sector to invest, Joshi said. It also
means opening up and modernising raw
fuel transportation and electricity
distribution, both of which remain what
he termed political footballs.

Governance structures remain wedded


to licensing, regulation and control,
rather than growth, programme
management and true market
liberalisation. No wonder India continues
to rank a dismal 142nd on the Ease of
Doing Business Index, Joshi said in The
Times of India.
A painful example of this is the
convoluted regulations surrounding coal
supply by CIL to private power
companies.
Under existing terms, buyers sign up
for a yearly contract which permits them
to amend it only once. In other words,
they cannot ask for more coal from CIL
if needed.
Such rigidity will mean that imports
are certain to keep on rising if Modi is to
keep his promise to expand electricity
supply and distribution; good news for
coal miners in the US, perhaps.
Meantime, do not expect CILs venture
into the electricity generating business to
light up India very quickly.
If all goes well and there are no
administrative hitches, CIL has forecast
that its first plant may only be
operational in 2020.
In that time, Chinese state-owned
companies could and probably will
build dozens of new generating plants.

Solar comes of age in Japan


The solar market has reached maturity in Japan, with 25,000 MW of capacity and no need
for high subsidies. Yet grid connections must be improved to maintain investment levels
By Helen Castell
Japan has cut FiTs for solar, with the solar industry claiming it no longer needs high subsidies
Despite popularity, growth rates in Japans solar sector could be falling as the industry matures
Japan must deal with connection problems and distribution bottlenecks to support further solar growth
Solar power in Japan should become
profitable by the second half of 2016,
despite Tokyos plan to cut the feed-in
tariff (FiT) by a further 16% in July, the
Japan Renewable Energy Foundation
(JREF) claims.

Japans Ministry of Economy, Trade


and Industry (METI) is slashing the FiT
for solar in a bid to cut costs and bring to
an end three years of premium rates for
solar projects.
JREF welcomed the reduction in

subsidies, with chairman Tomas


Kaberger saying that solar had come of
age in Japan and no longer needed state
support. He said Japan was now joining
other G7 nations in providing a profitable
environment for solar power.

Have a question or comment? Contact the editor Richard Lockhart (richardl@newsbase.com)


Copyright 2015 NewsBase Ltd.
All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All
reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents

AsiaElec

12 May 2015, Week 19

page 5

COMMENTARY
Post-Fukushima bounce
Since the Fukushima nuclear meltdown
in 2011, Japans renewable energy
capacity has tripled to 25,000 MW, with
solar accounting for more than 80% of
this.
Prior to 2011, just 9% of Japans
power came from renewables, and most
of that from hydro. The country had only
4,900 MW of solar capacity at that time.
The big change came with the closure
of all Japans nuclear power plants
(NPPs), leaving the government
scrambling for alternative power sources.
Tokyo introduced a generous subsidy
scheme, offering to pay households that
installed solar panels on their roof 40 yen
(US$0.33) per kWh for power that they
sold back to the grid. This triggered a
surge in investment in residential solar
panels.
Now, Japan is already one of the
worlds four biggest markets for solar
panels and there also are a string of
utility-size solar power plants under way.
Electronics giant Kyocera started
producing electricity in November 2013
from the countrys biggest ever solar
array, which comprises nearly 1.5 square
km of panels in Kagoshima Bay and has
70 MW of capacity. The company also
plans to build a 430-MW plant on one of
Japans many offshore islands.
Japan aims to close 2,400 W of oilfired capacity by March 2016 and rely on
renewables to replace the lost capacity.

Running out of steam


No other technology is closer to
transforming Japans power industry than
solar, according to energy consultant
Wood Mackenzie. Solar costs will fall
further, as efficiencies are nowhere near
their theoretical maximums, it said in a
research report.
ExxonMobil also predicts that global
solar capacity will expand more than
twenty times between 2010 and 2040.
Yet there are concerns that Japans
solar revolution could be running out of
steam.
Japans biggest power utilities have
since late last year been refusing to take
more power from solar producers, saying
they do not have enough distribution
capacity.
The governments decision to cut the
price that utilities have to pay for power
from new solar to 27 yen (US$0.23) per
kWh also weakens somewhat the
incentive for further investment.
However, a dramatic fall in costs for
residential solar power production in
Japan should support installations going
forward and make up for the lower
subsidies. These costs have already more
than halved since 2010 to a level that is
barely higher than for non-renewable
power.
A plunge over the last few years in the
prices for solar cells and solar panels
globally has, along with those subsidies,
helped cement solar power as an
established energy source in Japan and

other key markets like China and the US.


Those price falls have been tough on
the companies that make cells and
panels, however, triggering a wave of
industry consolidation that has seen
industry names vanish and others slash
production.
Among the survivors is Japans Solar
Frontier, which has achieved economies
of scale at home, but to grow further will
soon need to extend its reach overseas.
Growing pains
NewsBase believes that solar power is
now a force to be reckoned with in Japan
and can be regarded as a mature
technology. The challenge for Tokyo is
to ensure that distribution bottlenecks
and in particular difficulties transporting
power between Japans eastern and
western regions, which use different
voltages do not trigger a slowdown in
solar powers momentum.
Tokyos plans to liberalise Japans
power sector alleviate these concerns, but
only partly, with a weakening of the
near-monopoly status enjoyed by Japans
ten big power utilities creating room for
new entrants. Yet how enthusiastic the
incumbents will be to open their markets
to competition remains to be seen.
Developers of solar power plants,
however, still need clear signals from the
government that they will be able to find
a market for their power at prices that
justify their investments and that the
industry has Tokyos full support.

THERMAL

Thailands Global Power Synergy


targets growth abroad
Thai state-owned electricity generator
Global Power Synergy is to focus future
growth outside its home country, the
company said.
Target countries for investment are
Myanmar and Indonesia, company
president Noppadol Pinsupa was quoted

by the Bangkok Post as saying.


Global is currently carrying out due
diligence on the possible acquisition of a
gas-fired thermal power plant (TPP) in
Thailand that is currently under
construction, plus a gas-fired TPP in a
neighbouring country, Noppadol told

the Post. He declined to give any details.


After that, Globals growth path over
the next 10 years would concentrate on
acquiring or developing coal-fired TPPs
abroad, he said.

Have a question or comment? Contact the editor Richard Lockhart (richardl@newsbase.com)


Copyright 2015 NewsBase Ltd.
All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All
reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents

AsiaElec

12 May 2015, Week 19

page 6

THERMAL
Global is already active outside
Thailand, with involvement in two
hydropower projects in Laos and a small
solar plant in Japan.
Noppadol also disclosed that his
company was negotiating to join a
consortium including Electricity
Generating Authority of Thailand
(EGAT) and Japans Marubeni to
develop a 1,800-MW, coal-fired TPP at
Myeik in southeast Thailand.
Rival Ratchaburi is separately carrying
out a feasibility study on a larger coalfired TPP in the same area of Myanmar,
Bloomberg Finance said.
Myanmar suffers from severe power
shortages as its economy grows,
especially along the southeast coastal

strip bordering Thailand.


However, several coal-fired TPPs
proposed for this region by Thai firms
aim to send a large portion of their output
across the border into Thailand, the Post
said.
Global Power, a subsidiary of Thai

Myanmar suffers from


severe power shortages as
its economy grows,
especially along the
southeast coastal strip
bordering Thailand

state-owned oil and gas monopoly PTT,


has twice postponed listing on the Stock
Exchange of Thailand, citing uncertain
public policies by the military-led
regime now running the country
following a May 2014 coup.
In April, Global said its listing was
imminent and hoped to raise 10 billion
baht (US$297 million) from an IPO
towards a targeted 18 billion baht
(US$535 million) capital expenditure
plan for the next five years.
Global Powers Noppadol also said his
company was negotiating to work with
Japanese and American firms to develop
a lithium storage battery system. No
further details were given.

NTPC to build 4,000-MW TPP in


Jharkhand
Indias NTPC is to build a 4,000-MW,
coal-fired Ultra Mega Power Project
(UMPP) in northern Jharkhand state in a
joint venture with state utility Jharkhand
State Electricity Board (JSEB).
NTPC will build an efficient supercritical project of 4,000 MW in two
phases, [to] provide affordable power
supply to consumers, said an NTPC
spokesperson after signing a
memorandum of understanding (MoU)
with JSEB last week.
A new joint venture company will be
set up to develop the project, which will
be built adjacent to JSEBs existing
power plant at Patratu in two phases.
NTPC will hold 76% of the joint venture,
while the remaining 24% will be owned
by the state utility.
The first phase of development
involves building three 800-MW units by
early 2020, while the second will see two
800-MW units constructed by 2024.
The state government will provide

land, water and coal for the proposed


power project. It has already agreed to
allocate 1,850 acres (7.5 square km) of
unutilised land of the existing Patratu
plant to the new project.
The developer would earmark around
85% of all power generated by the new
company to the consumers in Jharkhand.
NTPC has also indicated its
willingness to take up the development
of the 3,960-MW Tilaiya Ultra Mega
Power Project (UMPP), which has been
abandoned by Reliance Power.
NTPC is more than willing to come
on board, NTPC chairman and
managing director Arup Roy Choudhury
told reporters last week.
Jharkhand Integrated Power Ltd

NTPC aims to build 20,000


MW of new capacity by
2020, in addition to its
existing 44,000 MW

(JIPL), a wholly owned subsidiary of


Reliance Power, exited the Tilaiya
project because of delays in acquiring the
required 17,000 acres (68.8 square km)
of land for the project.
In August 2009, JIPL won rights to
build a 3,960-MW UMPP at Tilaya in
Hazaribagh district through a competitive
bidding process, but could not start work
on the project, as the state government
had not provided the required land even
after five years. NTPC made a bid to
develop the Tilaiya project but lost out to
JIPL.
The power utility has so far not
succeeded in winning bids in any of the
four UMPPs that have been awarded so
far.
NTPC aims to build 20,000 MW of
new capacity by 2020, in addition to its
existing 44,000 MW. It currently
operates 17 coal, seven gas, two solar
and seven joint venture generating
projects.

Have a question or comment? Contact the editor Richard Lockhart (richardl@newsbase.com)


Copyright 2015 NewsBase Ltd.
All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All
reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents

AsiaElec

12 May 2015, Week 19

page 7

THERMAL

Hitachi unit to establish power


plant service JV in Thailand
Japans Hitachi Power Solutions has
unveiled plans to set up a joint venture
company in Thailand to provide power
plant maintenance and consulting
services in the increasingly promising
Southeast Asian market.
Hitachi Power Solutions is aiming to
establish the joint venture company with
Japans Sanko Group in Bangkok on
June 30, although some details such as
the new firms name and senior
management have yet to be worked out,
Hitachi Power Solutions said on May 7.
Hitachi Power Solutions will take a
40% stake, while Sanko Group will hold
60% through two subsidiaries, Sanko

Controls and Thai-based Sanko Industrial


Solutions.
The joint venture company will
provide power plant maintenance and
consulting services to small-scale power
producers in Thailand, Hitachi Power
Solutions said.
According to Hitachi Power Solutions,
Thailands electric power sector is now
being liberalised and the number of
small-scale power producers in the
country is expected to grow in the future.
Hitachi Power Solutions is a subsidiary
of Japanese industrial conglomerate
Hitachi, while Sanko Group is primarily
involved in the area of instrumentation

control engineering.
Hitachi Power Solutions and Sanko
Group also set up a joint venture
company in the Philippines in 2011 to
provide power plant maintenance
services.
In February 2014, Japans Mitsubishi
Heavy Industries (MHI) and Hitachi also
integrated their thermal power system
operations, creating Mitsubishi Hitachi
Power Systems (MHPS).
The joint venture company also took
over the two parent firms geothermal
power systems, environmental
equipment, fuel cell, electric power sales
and other related businesses.

Black & Veatch selected for


Vietnam power plant expansion
Vietnamese state-run utility EVN has
chosen Black & Veatch to provide
technical services for the US$1 billion
Duyen Hai 3 thermal power plant (TPP)
extension in Vietnams Tra Vinh
Province.
When completed, the 1,200-MW TPP
is anticipated to supply 10% of the
countrys annual electricity demand and
improve the reliability of power supplies
in the region.
EVN subsidiary Power Generation
Corporation 1 has also chosen Japans
Sumitomo as a partner. The Japanese
company won a US$800 million
engineering, procurement and
construction (EPC) contract in November
2014.
Black & Veatch will work together
with Sumitomo to develop the project.
This role includes overall plant
engineering liaison and commissioning.
The company will also procure certain
balance of plant equipment, said Black

& Veatchs project director, Mark


Fournier.
The project aims to address seasonal
variations caused by the dominance of
hydropower in the region, resulting in a
more reliable system.
The Duyen Hai Power Generation
Complex is a 4,305-MW coal-fired
facility that comprises three separate
TPPs.
Duyen Hai 1 and 2 are made up of two
units each, while Duyen Hai 3 has three.
The 1,245-MW Duyen Hai-1 project is
being built by Chinas Dongfeng Group
at a cost of US$1.6 billion. Ground was
broken in September 2010 and the two
622-MW units are both slated to enter
service in July 2015.
The first unit was brought on line in
January 2015.
The 1,200-MW Duyen Hai-2 TPP is
being developed by Malaysians Teknik
Janakuasa and will cost US$2.2 billion.
The project still needs an investment

licence to proceed. The current plan is


for completion in 2020.
Meanwhile, construction of the Duyen
Hai-3 project commenced in December,
and is scheduled to be completed by June
2018.
In April 2015, EVN secured a
syndicated loan worth US$209 million
for Duyen Hai 3 from three domestic
lenders: VietinBank; BIDV and
Vietcombank.
A US$280 million coal seaport, the
Duyen Hai coal port, is also being
constructed for the power complex. The
port is being built by China
Communications Construction and work
began in April 2013.
It is expected to be completed in late
2015 and will be capable of handling 12
million tonnes per year of coal for
consumption at the complex's three
power plants.

Have a question or comment? Contact the editor Richard Lockhart (richardl@newsbase.com)


Copyright 2015 NewsBase Ltd.
All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All
reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents

AsiaElec

12 May 2015, Week 19

page 8

COAL

Standard Chartered walks away


from Adanis Carmichael project
Standard Chartered is to quit as financial
advisor to Adani Groups proposed
Carmichael coal project in Australia until
it can assess whether the project will
harm the environment, the banks
chairman told its AGM May 6.
We will go no further with this until
we are fully satisfied with the
environmental impact of this project,
John Peace said, adding that Standard
Chartered was in active dialogue with
the Australian government over the issue
and ready to meet environmental
campaigners.
When asked by Greenpeace activists
about the banks involvement in the
A$16 billion (US$ billion) Carmichael
thermal coal mine and rail project, Peace
refused to provide details.
Rajesh Kumar Gupta, group financial
controller at Adani Mining, told a
Queensland court in April that Standard
Chartered had lent it US$680 million.

Although Gupta did not specify which


project the money was for, observers at
the hearing said it was clear he was
referring to the Carmichael mine.
The bank has denied this, saying the
loan was a pre-existing refinancing
facility that was not part of the expansion
of the port or construction of the mine.
The bank appears to be playing with
legal definitions, Tim Buckley, a banking
and finance expert who also gave
evidence to the court, told The Guardian.
Adani Mining Proprietary is a single
purpose structure. It was created back in

We will go no further
with this until we are fully
satisfied with the
environmental impact of
this project

2010 to build the Carmichael mine and


rail project, he said. It is certainly
Standard Chartered ducking and
weaving.
The Australian state of Queensland
approved last year construction of the
Carmichael mine, which would produce
60 million tonnes of thermal coal per
year for export to India and generate
billions of dollars in revenue for the debtladed state.
Environmental campaigners have
slammed the project, which would also
involve the expansion of an Abbott Point
port on the Great Barrier Reef, saying it
will damage the reef.
The mine would be Australias largest
and would be linked to the Abbot Point
port via a 300-kilometre railway line.
If the project goes ahead, it could ease
the way for at least eight more massive
mines in western Queenslands Galilee
basin.

China cuts coal investment


China cut spending in the coal industry
by 4.1% in the first quarter of 2014 as the
government pursued a major cost-cutting
strategy in the coal sector as part of a
wider restructuring of Chinese industry.
Chinas investment in the coal industry
fell by 4.1% to 143.8 billion yuan
(US$24 billion) in the first quarter of this
year, according to data from the National
Statistics Administration. Investment in
coal production fell by 21.2% to 40
billion yuan (US$6.5 billion).
Investment by the private sector sank
by 23% to 23.7 billion yuan (US$3.9
billion) in the first quarter.
Investment in the countrys coal sector
has now fallen for two years in a row.

Chinas largest producing province,


Shanxi, saw investment in the coal sector
fall by 16% year on year in the first
quarter, local media reported.
Mining companies continued to see
their revenues and profits fall in the first
quarter as a result of weak prices.
In the first two months, the coal
industry earned 396.7 billion yuan

Mining companies
continued to see their
revenues and profits fall in
the first quarter as a result
of weak prices

(US$64.8 billion) in revenues, 8.3% less


than in the same period in 2014, while
profits plunged by 63% to 8.27 billion
yuan (US$1.4 billion).
Sources said that many mines were
still operating in the red. In Shanxi, about
84% of mining companies were
operating in the red in the first two
months.
The Chinese government has been
pushing utilities to use more clean energy
such as natural gas, which has held down
coal demand and prices. In early May,
5,500 kcal/kg coal was priced down by
100 yuan (US$16.3) per tonne, compared
with 410 yuan (US$67) per tonne at the
start of the year.

Have a question or comment? Contact the editor Richard Lockhart (richardl@newsbase.com)


Copyright 2015 NewsBase Ltd.
All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All
reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents

AsiaElec

12 May 2015, Week 19

page 9

NUCLEAR

Australia to sell uranium to India


Australia has approved plans to export
uranium to India after New Delhis
intense diplomatic efforts in recent years
overturned Australias decades-long
export ban caused by Indias nuclear
weapons programme.
Australian Foreign Minister Julie
Bishop said during a visit to Pakistan that
talks were now taking place on a deal,
which would have very strict controls
and safeguards.
India is pursuing a civilian nuclear
power programme. We are aware of the
vast areas of India that are yet to be
electrified. As a country we want India to
succeed economically, she said.
We have legal requirements as well as
standards and protocols that we need to
meet. And there are international
safeguards as well. If those safeguards
could be met then Australia will supply
uranium. But the agreement is still being
negotiated, so no uranium has been
supplied, she added.
Australia holds over 30% of the

worlds uranium deposits and presently


exports to 41 countries including US, EU
members, Canada, Japan, South Korea
and China.
A preliminary Indo-Australian nuclear
pact was signed on September 5, 2014,
during Australian Prime Minister Tony
Abbotts visit to New Delhi.
The agreement is to be implemented
once domestic requirements of both
countries have been fulfilled. The deal
has since been debated in Australias
parliament and was a subject of detailed
talks when Indian Prime Minister
Narendra Modi visited Canberra in
November.
On a four-day visit to New Delhi last
month, Bishop said the atomic deal
between the two countries would
probably be finalised by the end of 2015,
after which uranium deliveries could
begin.
On the administrative agreement, I
am confident that given that the US and
Canada have come to an accommodation

with India, Australia will be able to come


to an accommodation, Bishop said.
Indias economy continues to grow,
due to which the country will be a
significant emitter. Nuclear is a zero
emissions technology, Bishop added.
In January, Modi and US President
Barack Obama ended a six-year-old
deadlock over implementing the civilian
nuclear deal signed in 2008.
They reached an understanding on
nuclear liability and tracking atomic
material, creating a template that can be
followed by other countries. Significant
agreements were also signed in April
when Modi visited Canada and France.
The Indians signed a fuel supply deal
with Canadas biggest uranium producer,
Cameco, while localisation deals were
signed between Areva and Larsen &
Toubro.
New Delhi and Paris have also agreed
to fast-track the stalled 9,900-MW
Jaitapur nuclear power project (NPP),
which uses French technology.

Japans ageing Mihama NPP


moves closer to restart
Japans Kansai Electric Power has
moved a significant step closer to reopening the ageing Mihama nuclear
power plant (NPP) and extending its
working life beyond 40 years, as a key
government panel effectively decided
that faults running under the plant were
not active.
An expert panel of the Nuclear
Regulation Authority (NRA), Japans
nuclear watchdog, drafted a report on
May 8, which says that the faults
underneath the Mihama plant are highly
likely to be inactive.
The NRA was set up after the 2011
nuclear disaster at Tokyo Electric Power
Co.s Fukushima No. 1 NPP as a body

independent of the powerful Ministry of


Economy, Trade and Industry (METI).
Active faults are defined by the NRA
as faults that have moved in the past
120,000 and 130,000 years.
If the existence of any active fault
underneath the Mihama NPP had been
confirmed, Kansai Electric Power would
likely have been forced to shut the
facility permanently.
Earlier this year, Kansai Electric
Power unveiled plans to operate three
ageing nuclear reactors beyond the
operational limit of 40 years despite
public concerns over the safety of such
facilities in the country.
The three nuclear reactors are the No.

1 and No. 2 reactors at the Takahama


NPP and the No.3 reactor at the Mihama
NPP. The two plants are both located in
Fukui Prefecture, central Japan.
Kansai Electric Power filed an
application with the NRA in March for
the nuclear watchdogs safety checks of
the three 826-MW reactors.
Under tough new safety standards
introduced in the wake of the 2011
Fukushima disaster, reactors are not
allowed to operate for more than 40
years, in principle. If the safety of an
ageing plant is confirmed, the nuclear
regulator may grant a one-time extension
of up to 20 years.

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AsiaElec

12 May 2015, Week 19

page 10

NUCLEAR
The Takahama No. 1 and No. 2
reactors and the Mihama No. 3 reactor
started commercial operations in
November 1974, November 1975 and
December 1976 respectively.
Before the 2011 Fukushima disaster,
Japan had 54 nuclear reactors, which
supplied about 30% of the countrys

electricity needs. There are currently 43


operable nuclear reactors in Japan, but all
of them remain idled because of safety
concerns.
Japanese electric power companies
have significantly boosted electricity
generation at TPPs, especially LNG-fired
ones, to make up for lost output at NPPs.

Kansai Electric Power incurred a group


net loss for the fourth consecutive year in
fiscal 2014, which ended on March 31,
2015, owing to higher fuel costs for
thermal power generation in the wake of
the Fukushima disaster. It hopes that reopening its NPPs will lead to better
financial performance.

RENEWABLES

Philippines bids on 21
geothermal, hydro sites
The Philippines has invited companies to
bid for exploration and development
rights at 21 geothermal and hydro sites,
in a bid to reduce its dependence on
imported fossil fuels.
The countrys Department of Energy
(DoE) offered four areas for geothermal
exploration and development, although
only Areas 2 and 3 attracted bids, with a
total of eight spread between them.
Conversely, 31 bids were registered for
14 of the 17 hydro sites.
Although two areas were left without
bids, the DoE reported that it was happy
with the turnout and that Areas 1 and 4
would be open for direct negotiation. As
such, no more bids will be entertained for
the two areas. Nonetheless, the areas
without bid proposals have been declared
free and open for renewable energy
service contract applications under direct

negotiation (reverted as frontier areas),


energy director Mario Marasigan
confirmed to NewsBase via email.
The projects will cost between
US$2.5-US$3 million per MW,
Marasigan added.
Bids came mainly from local
companies, some with foreign and joint
venture partners. Companies such as
Repower Energy Development, Cabalian
Bay and AP Renewables submitted bids
for Area 2, while Repower, APC Energy
Resources, Emerging Power, Energy
Development and Biliran Geothermal
submitted applied for Area 3.
The Philippines has planned a 75% rise
in geothermal capacity by 2030, and an
even more notable 160% increase in
hydropower capacity, as well as an
additional 277 MW of biomass power
capacity. According to the countrys

National Renewable Energy Plan,


surveys have shown that there are 2,027
MW of proven geothermal reserves and
another 2,380 MW of potential reserves.
The majority (49%) of the countrys
installed geothermal energy capacity is in
the Visayas.
The government has continuously
sustained its efforts to increase the
utilisation of geothermal energy in the
country. Despite this, more work is
needed to harness the huge geothermal
reserves that remain untapped, the plan
says.
The total installation target of 1,495
MW is anticipated to be met by 2027,
with most of that expected to be
commissioned between 2016 and
2020.

NEWS IN BRIEF
POLICY
US-Vietnam sign
MoU to develop
competitive power
market
US Department of State Bureau of
Energy Resources (ENR) and the

Electricity Regulatory Authority of


Vietnam (ERAV) have signed a
Memorandum of Understanding (MoU)
for technical support from ENR for the
development of Vietnams competitive
power market. Underscoring the
importance of ENR technical support,
Ambassador Warlick said the
establishment of a competitive power
market can incentivise investment in

new power generation and transmission,


lower electricity costs, drive innovation
in cleaner technology, and encourage
conservation.
Deputy Chief of Mission Pierangelo
expressed her amazement at economic
growth and development Vietnam had
achieved over the last decade but added
that a country can only expand as far as
its power supply would allow.

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AsiaElec

12 May 2015, Week 19

page 11

NEWS IN BRIEF
She said Vietnam needed reforms, like
the establishment of a competitive power
market, to ensure the countrys electrical
supply could meet future demand. She
praised the MoU as yet another example
of how the United States is committed to
helping Vietnam become a strong,
prosperous and independent country.
The MoU signing is the latest in a series
of agreements for US assistance to
develop and strengthen Vietnams energy
sector. It also provides another success
story in the bilateral relationship during
the 20 year anniversary of normalisation
of relations between the US and
Vietnam.
VIETNAMNETBRIDGE.NET, May
7, 2015

GRID

PowerGrid inks pact


with Bangladesh
Indias state-run Power Grid Corporation
(PGCIL) has signed a pact with
Bangladesh to build a transmission
corridor at a cost of 760 million rupees to
supply 100 MW power to the
neighbouring country. The line, nearly 30
km in length, will initially operate at 132
kV and will be ramped up to 400 kV in
future. Power Grid will execute the
transmission line project on the Indian
side of the India-Bangladesh border in
Tripura.
On the other side, Bangladesh will build
the connecting line from Comilla
substation. The project is likely to ease
Indias energy starved neighbour, which
is currently facing an electricity shortage.
The bipartite power transmission
agreement will involve a double circuit
line with extension of bay from Surjya
Mani Nagar in Tripura. The applicable
transmission charges will be as per the
Central Electricity Regulatory Authority
(CERC) guidelines, a Power Grid
official said. Power Grid will use the
substation for extension of the line right
up to international border with
Bangladesh.
FINANCIAL EXPRESS, May 8,
2015

NTPC can proceed


with 1,320-MW
Khargone Project
A high-level committee has
recommended environmental clearance
for state-owned NTPCs 1,320-MW
Khargone power project in Madhya
Pradesh, but with certain caveats. The
committee recommended the project for
environmental clearance subject to...
specific conditions, a company official
said. The stipulations for the project,
estimated to cost 70 billion rupees, are
the coal transportation should be by rail,
the sulphur and ash content of coal shall
not exceed 0.5% and 43%, respectively,
and the latest authenticated satellite
imagery shall be submitted annually to
monitor alterations of the area, the
official said.
NTPC, the countrys largest power
producer, had earlier invited bids for
construction of the thermal project.
Infrastructure firm Larsen & Toubro
bagged the contract in April from NTPC
to set up the power project. ...the project
entails design, engineering, manufacture,
supply, erection and commissioning of
two coal-fired thermal units of 660 MW
each with ultra supercritical (energy
efficient) parameters, Larsen & Toubro
said.
NTPC earlier said it plans to finance the
EPC (engineering, procurement and
construction) package for Khargone plant
through external commercial borrowings
and its own resources.
PTI, May 10, 2015

SUPPLY

Kazakhstan
considers new power
plants to export to
China
Kazakhstan might build new energy
generation facilities with the aim of
exporting the electricity they produce to
China, according to Director of the
Electric Power Department at the
countrys Energy Ministry Baurzhan

Sarsenov said. As one of their most


promising projects, Kazakhstan and
China are considering the possibility of
building an electricity transmission line
to the central and eastern regions of
China. It is possible to build new power
plants in the Turgai and Ekibastuz
regions in Kazakhstan to sell Kazakh
electricity to China, Sarsenov said.
He said Kazakhstan would also use the
future CASA-1000 electricity
transmission project for the export of its
electricity to Afghanistan and Pakistan.
CASA-1000 will build more than 1,200
km of electricity transmission lines and
associated substations to transmit excess
summer hydropower energy from
existing power generation stations in
Kyrgyz Republic and Tajikistan to
Afghanistan and Pakistan.
According to Kazakhstan Electricity Grid
Operating Company (KEGOC), in 2014
electricity production in Kazakhstan
amounted to 93.9 billion kWh, by 1.9
billion kWh or 2.1% more than in 2013
(91.972 billion kWh). Electricity
consumption in the country increased by
1.991 billion kWh or 2.2% to 91.632
billion kWh in 2014 compared with
2013.
Over the past five years, generating units
with a total capacity of about 1,800 MW
have been modernised, repaired and put
into operation in Kazakhstan.
SILKROADREPORTERS.COM,
May 11, 2015

West Bengal could


reduce power tariff
in two to three years
The West Bengal government has hinted
at a reduction in power tariff in the next
two to three years following new captive
block regulations. We have got six
captive blocks. We think we will be able
to get coal at lower cost than before.
With this, there is a possibility that
power tariff may get lower in the next
two to three years, state power minister
Manish Gupta said.
He was referring to the Bengal region,
except Kolkata and Howrah, which are
controlled by private player CESC.

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All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All
reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents

AsiaElec

12 May 2015, Week 19

page 12

NEWS IN BRIEF
The cost of coal for the state discom,
WBPDCL, may come down to 1,800
rupees per tonne from the earlier 2,600
rupees per tonne, he added. According to
sources, the government may not pass on
the coal price benefit as it may withdraw
its subsidies on retail consumption and
mitigate other costs. Gupta said the final
tariff will depend on other factors like
freight and other costs.
PTI, May 8, 2015

THERMAL

New Delhi asks TPP


to comply with green
norms
The New Delhi government said its
central pollution watchdog, Central
Pollution Control Board (CPCB), has not
conducted any specific assessment of
pollution caused by thermal power plants
around their sites, but has so far asked 20
of them to comply with environment
standards. Directions under
Environment (Protection) Act, 1986 have
been issued to 14 power plants, while
concerned state pollution control boards
were asked to direct six power plants to
comply with the environmental standards
under Air (Prevention and Control of
Pollution Act), 1981 and Water
(Prevention and Control of Pollution)
Act, 1974, Javadekar said.
Replying to a Parliament question in the
Lok Sabha, the minister said CPCB
issued directions to the plants on the
basis of the findings of inspections
carried out by its environmental
surveillance squad (ESS). The power
plants which have been issued directions
include Paras and Koradi thermal power
stations in Maharashtra, Patratu,
Tenughat, Chandrapura power plants in
Jharkhand, Kutch Lignite in Gujarat,
Durgapur and Kolaghat in Bengal,
Rayalseema power plant in Andhra
Pradesh, and Chhabra thermal power
station in Baran district of Rajasthan.
TIMES NEWS NETWORK, May 6,
2015

COAL
Rejected coal
cargoes renew
uncertainty in China
Chinese customs bureaus have stalled
Australian and South African coal
deliveries that exceed fluorine limits
under the countrys new quality
regulations. Chinese customs have
stopped one shipment of high-ash
Australian coal at eastern Ningbos
Beilun port and a separate cargo of South
African coal at southern Guangxis
Fangcheng port over the past two weeks,
according to market participants with
exposure to Chinas import market,
although this could not be confirmed
directly with the counterparties or with
Chinese customs.
The Australian 5,500 kcal/kg thermal
coal was sold to a Chinese cement
producer and is understood to have been
rejected by the local inspection and
quarantine bureau. The cargo was later
redirected to a buyer in Taiwan, the
market participants said. The South
African 4,800 kcal/kg coal was sold to a
Chinese trader and is undergoing a third
round of inspections by authorities after
failing the first two checks.
Chinas main economic planning agency
the NDRC has mandated that coal
imports must meet quality standards for
five trace substances, with mercury
content of less than 0.6 micrograms per
gram, arsenic below 80 micrograms per
gram, phosphorous below 0.15%,
chlorine below 0.3% and fluorine below
200 micrograms per gram. These are in
addition to restrictions on ash and
sulphur content of a maximum of 40%
and 3%, respectively. The quality
regulations took effect on January 1 and
have raised waiting times, which have in
turn increased demurrage costs and the
risk of rejection at ports.
ARGUSMEDIA.COM, May 11,
2015

Indias April coal


imports down 6% to
18 million tonnes
India imported around 18 million tonnes
of coal in April through 25 major ports,
down 6% month on month, data from
shipbroker Interocean showed. The
monthly imports consisted of 14.5
million tonnes of steam coal, down 5%
from March, and 3.5 million tonnes of
coking coal, down 10%. Mundra on the
west coast received the highest coal
shipments in April at 2.7 million tonnes,
down 13% and of which 2.6 million
tonnes was steam coal.
Goa, also on the west coast, received the
highest coking coal shipments in April at
715,224 tonnes, down 14%.
The coal was mainly imported from
Australia, Indonesia, South Africa and
the US.
PLATTS.COM, May 6, 2015

Bumpy goings for


Indonesian coal
miners
Indonesias publicly listed coal miners
continue to see incomes shrink amid a
decline in the global demand for coal,
which has dragged down prices in recent
years. State-run miner Bukit Asam and
major coal producer Adaro Energy both
reported significant reductions in their
bottom lines during the first three months
of the year, with the former booking a
drop in net profits of 36.5% year on year
to 330.34 billion rupees (US$25.47
million).
Adaro, meanwhile, saw its net profit
halved from the US$128.75 million it
booked between January and March 2014
to US$59.06 million in the same period
this year. In press releases, both
companies said low prices and flagging
demand were behind their lacklustre first
quarter performance.
Global coal price-benchmark Newcastle
showed a 2.7% quarter-on-quarter
increase during the first three months of
the year, while Indonesias coal price
reference rose by 6.14% from January to
March, to around US$68 per tonne.

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AsiaElec

12 May 2015, Week 19

page 13

NEWS IN BRIEF
But the increases could not make up for
the more than 10% drop in coal prices
over the last year triggered by a decline
in Chinese demand, the worlds largest
coal consumer.
A higher price benchmark did not
necessarily translate into better
performances for companies, as the price
was still generally low and exported
production shipped mostly to China,
demand from which is slowing on the
back of the economic slowdown, BNI
Securities analyst Viviet Putri said.
JAKARTA POST, May 5, 2015

Indonesian coal
output to decline
Indonesian coal miners may produce less
coal this year in an attempt to turn
around the drop in commodity prices,
presenting another challenge to the
depressed dry bulk shipping market. The
Indonesian Coal Mining Association has
said that it believes that coal production
will total 350-400 million tonnes this
year, which would mark a decline of 58108 million tonnes from 2014.
That works out to a year-on-year decline
of 12.66-23.58%, based on the 458
million tonnes produced in 2014.
Indonesia is the worlds biggest coal
exporter and producer, with key
importers being China and India. The
anticipated decline in Indonesias coal
output coincides with an expected drop
in Chinas coal demand due to slowing
economic growth and its growing use of
LNG in its energy mix.
While India is raising coal imports, this
would not be adequate to make up for the
decrease in Chinas coal imports.
Dry bulk consultancy Commodore
Research said, A year on year decline of
58-108 million tonnes of Indonesian coal
production fits into the 81.6-101.6
million tonnes drop in overall Chinese
coal imports we predicted.
We also continue to believe that Indian
imports will increase by 20-25 million
tonnes this year, which combined with
our expected range of decline for overall
Chinese coal imports works out to total
overall coal imports from China and
India falling this year by 56.6-91.6

million tonnes. This figure is very much


in line with the Indonesian Coal Mining
Association anticipated decline in coal
production.
IHS, May 7, 2015

DoE wants
privatisation of
Mindanao coal plant
pushed back
Philippine Energy Secretary Carlos
Jericho Petilla wants to push back the
privatisation of the supply contracts for
the output of the 200-MW Mindanao
coal-fired plant to next year from
September this year. The power plant
supplies about a fifth of Mindanaos
power requirements. Petilla is concerned
that an early auction could result in
power-rate hikes. He said electric cooperatives would be forced to source
power from the winning bidder which, in
turn, could dictate prices due to lack of
competition.
I want to ask PSALM [Power Sector
Assets and Liabilities Management
Corp.] to delay the privatisation until
such time that the power plants of
Aboitiz, Alsons or San Miguel have been
put up, Petilla said. The energy chief
said a better scenario would be to
privatise the contracted capacity of the
STeag coal-fired power plant in Misamis
Oriental sometime within the first half of
2016 when the new power plants of the
power- generation companies are
expected to come online.
Its better to hold off the privatisation so
that the consumers wont be burdened
only until such time when at least two
power plants are up and running which is
actually very soon, maybe in the first half
of 2016, Petilla said. Therma South Inc,
a unit of Aboitiz Power, is building two
by 300-MW coal-power plant in Davao.
BUSINESSMIRROR, May 10,
2015

NUCLEAR

Australias nuclear
industry under study
The availability of cheap electricity will

determine if a nuclear enrichment and


processing facility can be set up in South
Australia, which is considering a fullscale nuclear industry to help its stagnant
economy, the Sydney Morning Herald
reported. Former South Australian
governor Kevin Scarce, who is heading
the royal commission into the nuclear
fuel cycle, has set a deadline of May,
2016, for his final report into whether the
State should expand from just allowing
uranium mining, into enrichment, waste
storage and nuclear power.
The commission has been officially
underway for several weeks and held
public meetings in the riverland regional
town of Berri. South Australia is host to
about 30% of the worlds known
uranium deposits, including the largest
copper and uranium mine in the world,
operated by BHP Billiton.
SYDNEY MORNING HERALD,
May 6, 2015

China to build third


generation nuclear
reactor
Construction of Chinas first thirdgeneration nuclear reactor will start on
May 7, a state-run company said, as
Beijing attempts to export its atomic
energy designs globally. Unit five of the
Fuqing nuclear power plant in Fujian
province will incorporate an ACP1000
reactor developed by the China National
Nuclear Corporation (CNNC), the firm
said. The ACP1000 is one of a third
generation of reactors designed to extract
more energy from a given amount of
uranium fuel than previous technologies,
and in a safer way.
Other third-generation reactors are under
construction elsewhere, with competing
designs by French group Areva,
Westinghouse of the US, and South
Koreas Kepco, among others. CNNC
touts its reactor as a production of
independent innovation, although
industry reports say it is related to a
French design imported to China in the
1990s. This project is also very
important for our nuclear going-global
strategy, CNCCs general manager Qian
Zhimin said.

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All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All
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AsiaElec

12 May 2015, Week 19

page 14

NEWS IN BRIEF
Mainland China has 26 nuclear power
reactors in operation, 23 being built, and
more about to start construction,
according to the World Nuclear
Association. Chinas policy is to go
global with exporting nuclear
technology including heavy components
in the supply chain, it added.
CNNC said an ACP1000 has been
exported to Pakistan, and a deal was
signed in February for a sale to
Argentina.
AFP, May 7, 2015

China, Argentina
continue talks on
new nuclear plants
A US$13-billion deal agreed by China to
build two reactors for Argentina hinges
entirely on the Chinese side putting up
the financing, with a final arrangement
on the cash deal to be signed in 2017,
according to sources in the Chinese
nuclear industry. CNNC [China
National Nuclear Corporation] signed the
deal but it and several Chinese
government agencies involved are
demanding that the loan from China be
contingent on Chinese companies being
given priority in all aspects, including
design, construction and fuel cycle, said
a Chinese consultant for equipment sales
between western and Chinese nuclear
firms.
The source added: Argentina needs the
Chinese funds to build the reactors but
its not convinced on the equipment,
because the Fuqing project [based on
Chinas first domestically designed
commercial reactor, the Hualong One] is
running behind schedule and thus the
delay [in final signing off on the deal] till
2017.
Sources in Buenos Aires said that the
deal would be part of a wider plan to
boost nuclear power capacity by 3,000
MW over the next decade to meet rising
demand for electricity. Argentinas state
nuclear power operator, Nucleoelectrica
Argentina SA (NASA) wants work on an

800-MW pressurised heavy water reactor


to begin in 2016. The second project is in
the preliminary stages, with construction
planned to begin in 2017 on a 1,100 MW
pressurised water reactor. But China is
insisting that domestic components are
central to the deal and this might push
progress back to 2017.
WORLD NUCLEAR NEWS, May
9, 2015

Generation at
KNPPs first unit
suspended
Power generation in the first unit of
Kudankulam Nuclear Power Plant
(KNPP) has been suspended due to a
technical snag, officials said. However,
repair work has already been commenced
to rectify the snag, which was detected
May 9 and will be set right in one or two
days, they said.
Work on commercial power generation
in the 1,000-MW second unit was also
continuing, the officials said.
PTI, May 10, 2015

Indonesia mulls
building NPPs in
Kalimantan
Indonesias Energy and Mineral
Resources Ministry is considering
building nuclear power plants in the
provinces of Kalimantan or BangkaBelitung. Now we are carrying out a
feasibility study. At the same time we are
educating people about nuclear power,
ministry director general of electricity
Jarman said.
Kalimantan and Bangka-Belitung were
chosen because the two regions were not
prone to earthquakes or tsunamis, he
said, adding that the feasibility study in
Bangka had been completed, while in
Kalimantan it was still in progress. If
the feasibility study in Kalimantan is
completed, we will later decide the
mechanism of its construction, whether it
is entrusted with state-owned electricity

company PLN or private companies,


Jarman said.
The consideration to use nuclear power
was taken because it would be difficult to
build a power plant with a combined
capacity of 7,000 MW per year if it
depended only on fossil energy.
THE JAKARTA POST, May 10,
2015

Nuclear remains
Japans cheapest
power source
A panel of nuclear experts has largely
approved a Japanese government report
saying that atomic power remains the
cheapest source of electricity, despite the
rising safety costs triggered by the 2011
Fukushima core meltdowns. Despite an
expected glut in solar power, the
government is looking to make nuclear
power account for 20 to 22% of Japans
electricity supply by 2030, underscoring
its policy of sticking with atomic power
even though the majority of the public
remains opposed to restarting its idled
reactors.
According to the latest estimate of power
generation costs by the Ministry of
Economy, Trade and Industry, atomic
power would cost at least 10.3 yen per
kWh in 2030, cheaper than power
derived from fossil fuels, natural gas,
wind and solar energy. That is higher
than the 8.9 yen projected in 2011 and is
based on a projection that costs for plant
decommissioning and compensation
from a severe accident would jump to 9.1
trillion yen from the 5.8 trillion yen
estimated in 2011, reflecting the
Fukushima nuclear crisis.
METI also said additional safety
measures required to run a nuclear
reactor would cost an average of 60.1
billion yen. But the increase in overall
generation costs is limited because the
probability of a nuclear accident would
decrease after utilities complete their
safety measures, it said.
KYODO, May 11, 2015

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All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All
reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents

AsiaElec

12 May 2015, Week 19

page 15

NEWS IN BRIEF
HYDRO
China signs deal to
build hydropower
plant with Russia
Chinas biggest hydropower developer,
China Three Gorges Corp, has signed an
agreement with Russian hydropower firm
RusHydro to jointly build a hydropower
plant in Russia, state news agency
Xinhua said. The 320-MW plant would
be located on Russias Bureya river in
the east and would help to control floods
in the region, Xinhua said, citing a
statement from Three Gorges Corp.
Electricity generated from the plant
would be transmitted back to China, it
said. Details about the value of
investment were not available. The deal
was one of a series signed between China
and Russia on the sidelines of a parade in
Moscow that was attended by President
Vladimir Putin and Xi Jinping.
REUTERS, May 11, 2015

India plans basinwise hydropower


review
India is planning an exhaustive basinwise study of the hydropower potential in
the country after a gap of 28 year, an
exercise to gather fresh data looking at
energy security and factors ranging from
climate change and earthquakes to
human displacement. The study will also
assess the environmental and social
impact of river basin development.
The last such survey was undertaken in
1978-87. The Central Electricity
Authority (CEA), Indias apex powersector planning body, is leading the
ambitious project, initiated in 2012, and
plans to appoint a consultant for the
work, amid concerns over climate change
and its impact on rainfall and on river
flow and its patterns, which in turn may
have an impact on plans for hydropower
generation. This comes in the backdrop
of widespread protests against
hydropower projects from people who

are at risk of being displaced by the


projects.
LIVE MINT, May 5, 2015

BHEL commissions
first unit at Shrinagar
HPP
Power plant equipment manufacturer
Bharat Heavy Electricals (BHEL) has
commissioned an 82.5-MW hydroelectric
generating unit at the 330-MW Shrinagar
Hydro Electric Project (HEP) in
Uttarakhand, India. The renewable
facility, which is being developed by
Alaknanda Hydro Power Corporation
(GVK Group), will house three more
units with power generation capacity of
82.5 MW each. The power plant is being
constructed on the Alaknanda River, near
the town of Shrinagar in Pauri Garhwal
District in the Indian State.
The facility will be supported by a dam,
which has a height of 90 metres from
deepest foundation level. The power
plant is being constructed on the
Alaknanda River, near the town of
Shrinagar in Pauri Garhwal District in
the Indian State. BHEL will be
responsible for the design,
manufacturing, supply, installation and
commissioning of the four units at the
facility which including Francis turbines,
generators, static excitation system,
generator transformer, unit transformers
and station transformers.
GVK has signed a power purchase
agreement (PPA) for the project with
Uttar Pradesh. Up to 12% of generated
power from the facility will be
transmitted to Uttarakhand without any
charge.
POWER TECHNOLOGY, May 8,
2015

KOMIPO to build
second hydropower
plant in Indonesia
Korea Midland Power Co (KOMIPO)
has started building the Semangka
Hydropower Plant on Sumatra Island,
Indonesia. This is the second

development project in Indonesia,


following the Wampu Hydroelectric
Project in 2011. Indonesias Semangka
Hydroelectric Power Plant Project will be
completed in September 2017. The
project includes an electricity sales
contract that the Indonesian government
will guarantee, and its electricity board
will purchase electricity. KOMIPO
expects to turn over approximately 128
billion won (US$118.42 million) by
selling electric power for nearly 30 years
after the development.
KOMIPO believes that the two
hydropower projects in Indonesia will
become an opportunity for Korean smalland medium- sized companies to tap into
overseas markets. Five small Korean
companies, including POSCO
Engineering and Haechang Construction
Co, participated in the Semangka project.
BUSINESS KOREA, May 6, 2015

RENEWABLES
Broken Hill Solar
farm underway

The first of 650,000 PV panels has been


installed at the solar farm taking shape
near the birthplace of Australian mining,
ABC News reported. AGL is developing
the 53-MW Broken Hill solar plant,
which, combined with its partner project
Nyngan, will be the largest in the
southern hemisphere. The plant is
expected to power 17,000 homes when
generation begins later this year. Project
manager Adam Mackett said conditions
in the outback have proved a good fit for
the project.
Its a fantastic area to host the solar
plant, he said. The solar irradiance out
at Broken Hill is great. The other benefit
is just the skilled workforce out there.
Weve got 85 people on site [and] weve
got more than 50% of people from the
local region. The A$440-million Broken
Hill and Nyngan plants combined will be
Australias largest utility-scale solar
projects.
ABC NEWS, May 5, 2015

Have a question or comment? Contact the editor Richard Lockhart (richardl@newsbase.com)


Copyright 2015 NewsBase Ltd.
All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All
reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents

AsiaElec

12 May 2015, Week 19

page 16

NEWS IN BRIEF
Australian RET
reviews causing
friction
The long-running saga of Australias
renewable energy target has entered
another round with Labor declaring there
will be no deal if the government
continues to review the scheme, the
Sydney Morning Herald reported. An
eleventh-hour government decision to
retain two-yearly reviews has derailed a
new bipartisan agreement that would
have reduced the target from 41,000
GWh of renewable energy production by
2020 to 33,000 GWh.
The move, believed to have been put
forward by Industry Minister Ian
Macfarlane, has prompted a furious
reaction from the clean energy industry,
which has demanded that the government
stand by its promise to scrap two-yearly
reviews. The Labor caucus agreed that a
figure of 33,000 GWh could form the
basis of an agreement with the
government but the opposition could not
support a plan that included two-yearly
reviews.
The government shouldnt proceed with
introducing legislation if the package
they put to the parliament has the twoyear reviews in it, Labors environment
spokesman Mark Butler said. The
industry has made it clear that new
building will not proceed if there is still a
two-year review process that would lead
to the review starting in as little as seven
months time.
SYDNEY MORNING HERALD,
May 12, 2015

Shanghvis proposed
deal with Suzlon
approved
The Competition Commission has
cleared billionaire Dilip Shanghvis
proposed 18-billion-rupee stake in wind
turbine maker Suzlon Energy. The deal,
announced in February this year, would
see Shanghvi acquiring at least 23%
stake in Suzlon, which has been
grappling with tough business conditions.
The Competition Commission of India

(CCI) said it has approved acquisition


of shares in Suzlon by Aalok D Shanghvi
& Others.
Suzlon has entered into definitive
agreements with Dilip Shanghvi Family
and Associates (DSA) for equity
investments of 18 billion rupees in the
company. Post allotment, DSA wold
have 23% stake in the wind turbine
maker while the Tanti Family would
have 24% shareholding.
When the deal was announced in
February, Suzlon Group Chairman Tulsi
Tanti had said that support from
Shanghvi would help in creating a long
term sustainable value for stakeholders.
PTI, May 8, 2015

India signs
renewable pacts
with 12 nations
Indias Ministry of New and Renewable
Energy has signed memorandum of
understanding (MoU) with 12 countries
during the last three years to enhance cooperation in the sector, Parliament was
informed. The Ministry of New and
Renewable Energy has signed MoUs
with 12 countries during the last three
years. In addition, letter of intent and
joint declaration of intent with Egypt and
Germany were also signed, Power, Coal
and Renewable Energy Ministry Piyush
Goyal said.
He told the House that joint research
work has been initiated by the National
Institute of Solar Energy (India) and
Fraunhofer Institut fur Solary
Energiesysteme (ISE), Germany, in solar
and wind resource mapping. He further
said that joint research work has also
been initiated with Centre for
Development of Industrial Technology
(CDTI), Spain, on wind energy
forecasting and development of
monitoring system for energy reception
elements in solar thermal plants.
OUTLOOK, May 7, 2015

Vikram Solar
commissions 40-MW
solar plant
Solar module manufacturer and EPC
Vikram Solar has this week successfully
commissioned a 40-MW solar PV plant
for IL&FS Energy Development
Company Limited (IEDCL) in the Indian
state of Madhya Pradesh. The installation
uses Vikram Solars high-efficiency
Eldora 250 polycrystalline PV modules,
and occupies a 260-acre site. Built in two
20-MW phases, the plant is now
connected to the grid as part of Indias
Jawaharlal Nehru National Solar Mission
(JNNSM) Phase-II, Batch-I scheme,
which is overseen by the Ministry of
New and Renewable Energy (MNRE).
Vikram Solar has also secured the rights
to manage the installations operations
and maintenance (O&M) requirements,
signing a 10-year contract with plant
owner IEDCL. In its first full year of
operation, the installation is expected to
generate 79,200,000 kWh of solar
electricity.
PV MAGAZINE, May 7, 2015

Tata Power aims to


generate 400 MW of
solar power
Tata Power Delhi Distribution aims to
generate 400 MW from solar power by
2022 through its planned rooftop solar
project for its industrial and commercial
consumers in the national capital. As part
of this, the company will offer its
industrial and commercial consumers a
scheme to opt for solar rooftop panels to
cut power bills.
Solar power is also seen to help ease
demand seen during peak hours. The
company in June last year had
commissioned a study by Energy and
Environmental Economics (E3), a US
energy consulting firm, to check the
feasibility of the distribution utilitys grid
rooftop solar PV and demand response
projects.
MINT, May 7, 2015

Have a question or comment? Contact the editor Richard Lockhart (richardl@newsbase.com)


Copyright 2015 NewsBase Ltd.
All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All
reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents

AsiaElec

12 May 2015, Week 19

page 17

SPECIAL REPORTS

Have a question or comment? Contact the editor Richard Lockhart (richardl@newsbase.com)


Copyright 2015 NewsBase Ltd.
All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All
reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents

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