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Power in Asia
Philippine coal-fired generating projects advance
In one of a number of developments in the burgeoning coal-fired power generation sector in the Philippines, the Meralco PowerGen Corporation (MPGC) is taking a controlling stake in a project under development in Luzon. The project on the Redondo Peninsula in the Subic Bay Freeport Zone in Zambales province will eventually comprise two 300-megawatt (MW) sets. Meanwhile in other developments the board of directors of the local Semirara Mining Corporation has approved investment in a 600-MW coal-fired project at Calaca in Batangas province on Luzon; subsidiaries of the local conglomerates Ayala and Phinma have agreed to construct and operate a 135MW coal-fired plant, also at Calaca; and the local developer A Brown Co., Inc has confirmed plans for the construction of a 200-MW coal-fired plant at Concepcion in Iloilo. In the first development, MPGC said on June 27 that it is buying an equity interest in the Subic Bay project by taking an as-yet unspecified but controlling stake in the special purpose vehicle Redondo Peninsula Energy, Inc (RP Energy). The special purpose vehicle is currently owned by an equal joint venture between Therma Power, Inc (TPI), which is a wholly-owned subsidiary of the local Aboitiz Power Corporation, and the Taiwan Cogeneration International Corporation (TCIC), which is the overseas subsidiary of the Taiwan Cogeneration Corporation. MPGC said that its acquisition of the majority ownership interest is contingent on the execution of a shareholders agreement in the next few weeks, among other conditions. The company is a wholly-owned subsidiary of the Manila Electric Company (Meralco), which is by far the largest of the countrys power distributors and suppliers. Meralco noted in a filing to the Philippine Stock Exchange that its entry into generation is part of its overall strategy to assist in ensuring efficient, adequate and reliable electricity at cost-competitive rates. Meralco currently buys its power under contract from plants owned by the state-owned National Power Corporation, from independent power producers or from the Wholesale Electricity Spot Market (WESM). Meralco said earlier in 2011 that it plans to invest up to $150 million in a 120-MW to 150-MW oil and gas-fired, combined-cycle peaking plant at Calamba in Laguna province, with initial operation scheduled for the first quarter of 2012. It added at the time that it also planned to build coal or gas-fired baseload capacity, with the aim by 2016 of controlling up to 1,500 MW of plant capable of generating power at a cost lower than Peso 5/kWh ($115/MWh). Aboitiz Power said in a statement to the Manila bourse that MPGC is expected to take a controlling interest in RP Energy, with TPI and TCIC owning the remaining stake equally. It added that commercial operation of the proposed Subic Bay coal-fired power plant is projected to commence in 2014. The plant is expected to augment the power supply of the Luzon grid. In the first instance the Subic Bay plant will comprise 300 MW of circulating fluidized bed (CFB) capacity, with Aboitiz Power having previously said that the use of CFB technology is intended both to reduce emissions and allow a greater
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Issue 582 / July 7, 2011 Analysis


Philippine coal-fired generating projects advance Australia selects Solar Dawn and Moree solar projects Australias LNG sector booms amid concerns Vietnam starts trial of competitive power generation market Chinese offshore wind capacity set to grow Juggling Southeast Asias power needs 1 4 5 6 7 8

Project tracker
June 2011 11

News
West Asia South Asia Southeast Asia China East Asia Australasia 13 14 17 19 20 22

Asia Beat
24

Opportunities
25

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AnAlysis

Projects

Philippine coal-fired generating projects advance


range of coals to be used. The overall project will cost up to Peso 50 billion ($1.15 billion), with the finance expected to include about Peso 33 billion of limited recourse debt. Aboitiz Power has said that the coal could be sourced from the local mines of the Semirara Mining Corporation and from Indonesia. The project has been under development for more than five years. In 2008 Taiwans Formosa Heavy Industries was awarded a $200-million contract for boiler and turbine equipment and for related services, with construction then scheduled to start in 2008 and with operation planned from 2011. But the project was deferred in January 2009 and only revived in 2010 after revisiting the power demand and supply situation in the Luzon grid, according to Aboitiz Powers 2010 annual report. The MPGC acquisition was announced as Meralco said that it had signed a Peso 5 billion facility agreement with the Hong Kong Shanghai Banking Corporation Limited Trust Department as lead arranger and with the Hong Kong Shanghai Banking Corporation Limited as lead manager. The facilities include Peso 500 million of seven-year and Peso 4.5 billion of ten-year notes, with the proceeds from the sale to institutional investors to be used for corporate purposes.

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The Semirara Mining Corporation, which is the listed mining and power subsidiary of the local conglomerate DMCI Holdings, Inc, plans to build four 150-MW CFB units at Calaca in Batangas province through a whollyowned subsidiary. Semirara Mining had told the Philippine Stock Exchange earlier in June that it might proceed with the 600-MW by itself, rather than with other investors who were said to possibly include Meralco and Japans Marubeni Corporation (see PiA 581/14). But at that stage it cautioned that the proposal was still at the planning stage and remained to be confirmed - a position changed at the June 21 board meeting. The project is estimated to cost around $900 million, equivalent to $1,500/kW. When Semirara Mining first told the Manila bourse about the project in 2010, it had an estimated cost of $750 million. Through the SEM-Calaca Power Corporation, Semirara Mining already owns a 600-MW coal-fired plant at the proposed site. SEM-Calaca acquired the two 300-MW units on their privatization in July 2009 for $361.7 million, equivalent to $603/kW. The two units were commissioned in 1984 and 1995, and financed by Japans Japan Bank for International Cooperation. SEM-Calaca was allowed to buy the plant on a negotiated basis after three privatization attempts failed between May 2005 and October 2007. A third project, also to be located at Calaca, advanced on June 29 when the Ayala Corporation, through its wholly-owned subsidiary AC Energy Holdings Inc, and Issue 582 / July 7, 2011
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More plant at Calaca


The MPGC investment in the Subic Bay project came less than a week after one of the countrys main coal producers said that its board of directors had approved an investment in 600 MW of new coal-fired generation.

Power in Asia
Editor Martin Daniel martin_daniel@platts.com tel +44 (0)20 7176 6169 fax +44 (0)20 7176 6670 Editorial Director, European Power Vera Blei Production Editor Dominic Pilgrim Editorial Director, Asia Vandana Hari Editorial Director, Global Power Larry Foster Vice President, Editorial Dan Tanz Platts President Larry Neal Manager, Advertisement Sales Kacey Comstock Power in Asia is published twice monthly by Platts, a division of The McGraw-Hill Companies, registered office: 20 Canada Square, Canary Wharf, England, E14 5LH. Officers of the Corporation: Harold McGraw III, Chairman, President and Chief Executive Officer; Kenneth Vittor, Executive Vice President and General Counsel; Jack F. Callahan Jr., Executive Vice President and Chief Financial Officer; John Weisenseel, Senior Vice President, Treasury Operations. Prices, indexes, assessments and other price information published herein are based on material collected from actual market participants. Platts makes no warranties, express or implied, as to the accuracy, adequacy or completeness of the data and other information set forth in this publication (data) or as to the merchantability or fitness for a particular use of the data. Platts assumes no liability in connection with any partys use of the data. Corporate policy prohibits editorial personnel from holding any financial interest in companies they cover and from disclosing information prior to the publication date of an issue. Copyright 2011 by Platts, The McGraw-Hill Companies, Inc. Permission is granted for those registered with the Copyright Clearance Center (CCC) to photocopy material herein for internal reference or personal use only, provided that appropriate payment is made to the CCC, 222 Rosewood Drive, Danvers, MA 01923, phone (978) 750-8400. Reproduction in any other form, or for any other purpose, is forbidden without express permission of The McGraw-Hill Companies, Inc. For article reprints contact: The YGS Group, phone +1-717-505-9701 x105 Text-only archives available on Dialog File 624, Data Star, Factiva, LexisNexis, and Westlaw. Platts is a trademark of The McGraw-Hill Companies, Inc.

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Power in AsiA / issue 582 / July 7, 2011

AnAlysis

Projects

the Phinma Corporation, through Trans-Asia Oil and Energy Development Corporation, signed a joint venture agreement to build and operate a coal-fired plant. The project will be built through a joint venture company, South Luzon Thermal Energy, and will be equally owned by Trans-Asia and AC Energy. The 135-MW CFB plant has a total cost of up to Peso 12.6 billion ($291 million) - equivalent to $2,156/kW and will be financed by a combination of debt and equity, the companies said. The plant is scheduled to begin construction in September and to enter commercial operation by mid 2014. Trans-Asia Oil had earlier in 2011 signed an engineering, procurement and construction (EPC) contract with the local DM Consunji Inc for the baseload project. Ayalas president and chief operating officer, Fernando Zobel de Ayala, said the project is part of our strategy to build a portfolio of power generation assets that combines conventional and renewable energy sources. He added that the project would contribute much-needed baseload capacity in Luzon, simultaneous to our efforts to contribute in the development of alternative energy sources. AC Energy Holdings, which was formerly known as Michigan Power, recently acquired a 50% stake in Northwind Powers wind farm project at Bangui in Iocos Norte. It has also formed several joint ventures to develop solar and mini-hydro projects at various sites. Meanwhile Trans-Asias wholly-owned subsidiary, the Trans-Asia Renewable Energy Corporation, has been awarded service contracts covering 350 MW of potential wind capacity.

Projects mentioned in the article


Location Concepcion Calaca Calaca Davao Naga Subic Bay Developer A.Brown Semirara S Luzon Energy Therma South Kepco Salcon RP Energy MW 200 600 135 300 200 600 Status Company approval Company approval New sponsor Announced Operational MPGC joins project

Source: Company reports

The four projects are among a large number of coal-fired projects under active development in the Philippines, both on a greenfield and expansion basis. For instance, Aboitiz Power is developing the 300-MW Davao coal-fired project on southern Mindanao island through a wholly-owned subsidiary, Therma South Inc. The two 150-MW CFB units have an estimated cost of Peso 25 billion, with the company planning to fuel the plant with coal from Indonesias Kalimantan.

Kepco Salcon Power


Meanwhile the countrys stock of operational coalfired generating capacity increased on June 27 when President Benigno Aquino-III formally inaugurated a 200MW plant in the central Visayas region. The project at Naga on Cebu was developed by Kepco Salcon Power Corporation, a 60/40 joint venture between a subsidiary of the South Korean state-controlled utility Korea Electric Power Company (Kepco) and the local SPC Power Corporation. The project cost $451 million with the Korea ExportImport Bank among the financiers. The two CFB units sell more than 90% of their capacity and output to ten electric cooperatives and distribution utilities under 10-year power sales agreements, with the rest of the 1.49 TWh/year of average output intended for sale on a merchant basis into the WESM. Kepco, which now provides more than a tenth of grid electricity as the fourth-largest generator in the Philippines, was first asked by the government to build a coal-fired plant on Cebu in June 2003. The government approved the project in May 2005 and in December 2007 South Koreas Doosan Heavy Industries was awarded the $300-million EPC contract, with construction beginning in February 2008. In July 2009 the project signed a 10-year agreement with the local MG Mining and Energy Corporation for 0.32 million metric tons/year of local coal from 2011. It also entered into contracts for Indonesian coal imports with PT Kasih Industri and PT Surya Sakti Darma Kencana.

Concepcion project
A fourth coal-fired private generating project advanced in late June when A Brown Co., Inc (ABCI), the investment arm of the businessman Walter Brown, confirmed local press reports that it is developing a 200-MW coal-fired plant at Concepcion in Iloilo. ABCIs vice president, Roel Castro, had said that the company will in the first instance build 100 MW of capacity through a subsidiary, the Palm Thermal Consolidated Holdings Corporation. Castro said that financial close on the $200-million project is anticipated in the fourth quarter of 2011. He said that expansion of the plant with another 100 MW of capacity would occur when the company had entered into sufficient supply contracts to underpin the venture. ABCI had told the Manila bourse in November 2010 that it was entering the private power generation business by acquiring DMCI Concepcion Power Corporation.

Power in AsiA / issue 582 / July 7, 2011

AnAlysis

Projects

Australia selects Solar Dawn and Moree solar power generation projects
The Australian federal government has selected Solar Dawn and Moree as the two projects awarded funding in the first round of its Solar Flagships program. The program is intended to support the development and commercialization of large-scale, grid-connected solar projects through the provision of A$1.5 billion ($1.59 billion) of federal funding for four projects, with Solar Dawn and Moree together to receive A$773 million. The A$1.2-billion Solar Dawn project is being developed by a consortium led by the solar power subsidiary of Frances Areva. It also includes the local generator CS Energy and renewable energy developer Wind Prospect CWP. The Solar Dawn project will comprise 250 megawatts (MW) of solar thermal gas hybrid power capacity. The national and Queensland state governments are committed to contributing A$464 million and A$75 million, respectively to the project, Areva Solar said. Areva Solar added that the consortium will now work with government and stakeholders to finalize all relevant approvals and financing arrangements, as well as engineering, procurement, construction, operations and maintenance contracts, by the end of 2011. The state-owned CS Energy, which says it will operate and maintain the Solar Dawn plant, noted that the project consists of approximately 450 hectares of infrastructure including a solar field containing the mirrors and steam boiler tubes, and a power block with the steam turbine generators, gas boilers and ancillary equipment. It added that the facility is projected to enter commercial operation in early 2015 following the finalization of project development in December 2011. The project will be located near to CS Energys 750MW coal-fired merchant plant and 44-MW Solar Boost project at Kogan Creek near Chinchilla in southwest Queensland. The Solar Boost project was awarded in April 2011 and is separate from the Solar Dawn project. Areva Solar noted that both solar projects will use its Compact Linear Fresnel Reflector (CLFR) solar thermal technology. The CLFR steam generators will be combined in the Solar Dawn project with a gas boiler back-up system, whereas the Solar Boost project will supplement conventional coal-fired steam generation by supplying additional solar-sourced steam to the turbine on its completion in 2013. The power from all the projects at the Kogan Creek site will be evacuated to the grid through Powerlink Queenslands Western Downs substation.

Moree project
Meanwhile the second project to receive federal government funding under the first round of the Solar Flagships program is located at Moree in the Tablelands region of the state of New South Wales. The government said that it will contribute A$306.5 million towards the A$923 million project, which it described as nearly twice the size of any photovoltaic power plant operating in the world today. The 150-MW solar photovoltaic plant near Moree is scheduled for commissioning by the end of 2015. The project is being developed by the Moree Solar Farm consortium, which includes the independent power producer Fotowatio Renewable Ventures (FRV), BP Solar and the local Pacific Hydro. FRV will be the majority equity holder in the consortium. BP Solar act as the engineering, procurement and construction contractor and retain a minority equity stake in the project, while the renewable energy investor Pacific Hydro will hold a minority shareholding in the project. Subject to final approvals, construction of the project is scheduled to commence in mid 2012. The project will comprise around 650,000 photovoltaic panels and will displace about 400,000 metric tons/year of CO2. Tony Stocken of BP Solar said that the Moree Solar Farm will pave the way for more utility-scale solar power production in Australia by demonstrating that this proven technology has an important role to play helping Australia transition to a low carbon emission future. He added that, while the Moree Solar Farm will be the first of its kind in Australia, utility scale solar PV power stations have been successfully operating in the USA, Canada, Spain, Italy, Germany, China and other countries for many years and Australia has a higher level of solar resource than any of these countries. Moree was chosen for its intense solar resource, one of the best in Australia, and the availability of suitable land closely located near an adequate substation to enable connection to the states power grid, Stocken said. When first announced by the federal government in 2009, the Solar Flagships program was described as an initiative to support the construction of up to four large-scale, grid-connected solar power stations using solar thermal and photovoltaic technologies. Two more projects thus remain to be awarded in the second round of the program.

Power in AsiA / issue 582 / July 7, 2011

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Policy

Australias LNG sector booms amid concerns


Standard & Poors Ratings Services has downgraded its outlook on the local energy developer Woodside Petroleum following a delay and cost surge at the Pluto liquefied natural gas project. The move came as another rating agency, Fitch Ratings, said that all Australian LNG projects currently underway face increasing development risk, cost blowouts and possible deferrals due to the boom in the Australian resources and infrastructure sectors. However, Australias substantial pipeline of large-scale, capital-intensive LNG projects is still moving forward. The Ichthys project is one of the latest to register progress. The Standard & Poors outlook downgrade of Woodside came after the company unveiled a six-month startup delay and a cost blowout at the Pluto project offshore from the state of Western Australia. However, at the same time Standard & Poors affirmed its credit ratings of Woodside. Woodside had said in mid June that, including the cost of revised arrangements with customers affected by the delay, Pluto would cost A$900 million ($950 million) more than previously expected, at A$14.9 billion. The company also said that it was delaying the scheduled start of LNG shipments from September 2011 to March 2012. Standard & Poors, which like Platts is a unit of The McGraw-Hill Companies, affirmed its BBB+ long-term corporate credit and senior-unsecured debt ratings on Woodside. But the ratings agencys outlook on the ratings was revised to negative from stable. In our opinion, further delays and cost overruns for Pluto reduce the buffer in the Woodside rating to weather any challenges, such as volatility in oil prices and exchange rates, Standard & Poors credit analyst May Zhong said in a statement. Furthermore, the project delay means that the time gap between completing Pluto and Woodsides next investment project is likely to be shorter, providing less time to establish a sustained improvement in the companys cash flow-protection metrics, she added. Zhong noted that the BBB+ rating may be lowered if Woodsides adjusted funds from operations to debt ratio falls below 30%, or free operating cash flow after capital expenditure remains negative for a prolonged period. Simultaneous development of two large projects would also put pressure on the rating, she said. We will continue to monitor the commissioning progress and will reassess the outlook several months after the delivery of Plutos first cargo, which is now scheduled in March 2012, Zhong said. A return to a stable outlook may be considered if Pluto demonstrates an operational track record, she added. After Woodsides initial announcement it had been suggested in a note by Bernstein Research analyst Neil Beveridge that the Pluto cost increase could take the unit cost of the project to $3,600/metric ton, making it the most expensive LNG development to date. Woodside would now require a long-term oil price of $100/barrel or an LNG price of $14/Mcf to generate a positive net present value on the project, Beveridge said. Apart from Woodside with a 90% stake, Plutos investors - and foundation customers - are Japans Kansai Electric Power Company and Tokyo Gas Company. Each owns a 5% equity stake and each has a 15-year contract to receive a total of up to 3.75 million metric tons/year of LNG from the 4.3 to 4.6 million mt/year project. Woodside has reviewed the cost and schedule of Pluto three times since the final investment decision was made in July 2007, when the budget was A$12 billion and the target startup date was March 2011. The project is based on the exploitation of the five trillion cubic feet of estimated gas in the Pluto and Xena fields. Pluto is not alone in facing problems. Fitch Ratings has said that all the Australian LNG projects currently underway face increasing development risk, budget blowouts and possible deferrals due to the boom in activity across the domestic resources and infrastructure sectors. The countrys LNG projects are thus competing for skills, materials and equipment, as well as other global suppliers to meet Asian gas demand, according to Fitch. There is a large number of LNG and other infrastructure projects in Australia presently under development, Sajal Kishore, director in Fitchs Energy & Utilities team, said in a statement. However, these projects face increasing execution risks from upward cost pressures and schedule delays. Fitch also notes similar announcements of delays and cost blowouts by other sponsors of Australian resources and infrastructure projects over the last two years, Kishore said. He added that Fitch expects funding to become more difficult as projects continue to face cost increases and timetable over-runs. This may result in a deferral or cancellation of some proposed projects, Fitch said.

Power in AsiA / issue 582 / July 7, 2011

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Policy

Australia currently hosts the operational 16.3 million mt/year North West Shelf and 3.6 million mt/year Darwin LNG facilities. New projects already underway include Chevrons 15 million mt/year Gorgon project in Western Australia; BG Groups 8.5 million mt/year and Santos 7.8 million mt/year projects on Curtis Island in Queensland; and Shells 3.6 million mt/year Prelude floating facility in the Timor Sea. More developments are expected to approach or reach final investment decisions over coming months. These include Chevrons 8.9 million mt/year Wheatstone and Woodsides 12 million mt/year Browse and 4.3 million mt/year Pluto-2 projects in Western Australia; Australia Pacific LNGs 9 million mt/year and Arrow Energys 8 million mt/year projects in Queensland; and the Inpex Corporations 8.4 million mt/year Ichthys project in the Northern Territory.

rigorous three-year assessment process, comprehensive environmental studies and extensive engagement with the community and other stakeholders, he said. The 15-year heads of agreements will run from 2017. The purchasers include Japans Chubu Electric Power Company, which has agreed to buy 0.49 million mt/year, while Taiwans CPC has agreed to buy 1.75 million mt/ year and Japans Toho Gas has agreed to take 0.28 million mt/year. Inpex will take 0.9 million mt/year for delivery to its Naoetsu import terminal, which is currently under construction and due to enter operation from 2014. Total will also take 900,000 mt/year, although the company has agreed to provide 200,000 mt/year of its volume to Inpex. Inpex has also reached agreements in principle to sell the projects remaining output to five unidentified Japanese utilities. Sources told Platts that the prospective buyers include the Tokyo Electric Power Company, Tokyo Gas and Osaka Gas. An Inpex official said that all of the buyers have expressed interest in taking equity stakes in the project, although the stakes will not be directly linked to the volumes lifted. He said that Inpex hopes to finalize the equity sales before taking the final investment decision on the $20-billion-plus project, which is currently nearing the end of front-end engineering and design work. The Ichthys field in Browse Basin permit WA-37-R holds an estimated 12.8 trillion cubic feet of gas and 527 million barrels of condensate. The gas will be piped 935 kilometers to a liquefaction plant in Darwin.

Ichthys advances
The latter project moved forward in late June when Inpex said it had entered into heads of agreements and initial sales contracts covering all the planned production. The two-train project is 76% owned by Inpex and 24% by Frances Total. The agreements were signed less than a week before Australias Minister for Sustainability, Environment, Water, Population and Communities, Tony Burke, approved Ichthys on June 28. This will pave the way for a final investment decision in the fourth quarter of 2011, according to Inpex. The companys president director for Australia, Seiya Ito, said federal environmental approval represented a significant milestone for the project. It had followed a

Vietnam starts trial of competitive power generation market


Vietnam began piloting a competitive generation market on July 1 at a time when higher than projected water levels and hydroelectric output have eased concerns over electricity shortages. But the likelihood that a fullycompetitive market will be introduced in the near to medium term remains slim. The pilot competitive market entails the sale of about 5% of the output of almost 50 generating units with more than 30 megawatts of capacity each on the basis of price bids submitted daily for hourly dispatch. The remaining output from these plants as well as the output from other generators will be sold as before at contracted prices. The number of participants in the voluntary market is lower than anticipated in May. At that stage 70 or so plants were expected to register with the Electricity Power Trading Company, and to have installed by mid June the systems needed to participate in the market (see PiA 579/14). A senior official from the Ministry of Industry and Trade said at the inauguration ceremony for the trial market that the introduction of competition into the generation sector would on the one hand attract private investment and on the other would contribute to reliable electricity supplies. It would also improve transparency and provide a level playing field, said Deputy Minister Hoang Quoc Vuong.

Power in AsiA / issue 582 / July 7, 2011

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Policy

However, some private investors in the sector have expressed concern that a level playing field is problematic given that the state power holding group Electricity of Vietnam (EVN) dominates the market. Its subsidiaries include most of the generators, the national power dispatch center and the market operator. Moreover, Finance Minister Vu Van Ninh was quoted by local media in late June as saying that controlling inflation was a higher priority than moving to fully competitive power prices, if these were to be much higher than at present. Ninh thus said that market-based prices could be delayed until at least 2013 within the overall roadmap of moving to a fully competitive power market by 2025. Inflation is currently running at more than 20% a year. And, given that power prices are well below the cost of supply, market-based electricity prices could be more than 50% higher than present levels, according to previously-published EVN calculations.

A more positive harbinger for the outcome of the trial is that hydroelectric output has increased as water levels rise at dams, according to EVN. This means that the severe shortages projected earlier in the year have not eventuated, giving more leeway for the offer of lower prices in the pilot program. Overall electricity output, currently estimated at 52.4 TWh for the first half of 2011, is about 10% higher than in the same period of 2010, EVN said. As well as higher water levels, this reflects the commissioning of new generating units at plants including Nhon Trach2, Son La and Uong Bi, with the utility saying that at least 2,000 MW more capacity is scheduled to enter operation in the second half. June month output of 9.3 TWh was 13% higher on year, according to EVN. However, this is still below the rate of increase in electricity demand, which is projected to rise by 15% in 2011.

Chinese offshore wind capacity set to grow


An order to supply 21 wind turbines with 2.3 megawatts (MW) of capacity each for an offshore project in Rudong County in Jiangsu province has been received by Germanys Siemens Energy. The order was placed by the Jiangsu Longyuan Offshore Wind Power Co., Ltd, a subsidiary of the China Longyuan Power Group Corporation Ltd. Commercial operation of the project is scheduled to begin in late 2011. The scope of supply includes a five-year service and maintenance agreement, Siemens said. The 50-MW project is a breakthrough in Siemens renewable energy strategy by securing the first offshore wind power order from China, the company said in a statement. With more than 600 wind turbines with a combined capacity of more than 1,800 MW installed in European waters, Siemens is clearly the market leader in offshore, the company said. It added that we also see good opportunities for offshore wind power in China with its shallow water near the consumption centers on the coast. Siemens opened its first rotor blade manufacturing plant in Shanghai in November 2010. It also began operating a nacelle plant in Shanghai in 2011. The order was announced soon after the official Xinhua news agency reported that the leading domestic wind turbine manufacturers are competing to bring to market ever-larger wind turbines for offshore wind projects. Guodian United Power told the Offshore Wind China 2011 event, which was held in Shanghai in mid June, that it plans to launch a prototype 6-MW wind turbine model suitable for offshore projects by the end of 2011. It added that it was developing a 12-MW turbine for launch in 2012. Meanwhile Goldwind, the countrys second largest wind turbine manufacturer, said it was working on the launch of a 6-MW prototype by the end of 2011 or early 2012. It is planning to start the bulk production of 6-MW turbines in 2014. Shanghai Electric told the event that it is developing a 5-MW offshore turbine for planned launch in 2011 or 2012. And another developer, the wind power subsidiary of the China Shipping Industry Corporation, is also planning to launch a 5-MW prototype, in its case in October. Chinas largest wind turbine manufacturer, Sinovel, is one of the leaders in the charge to install the countrys first 5-MW wind turbine. It is due to install a 5-MW turbine in a pilot project offshore from Shanghai in August.

Power in AsiA / issue 582 / July 7, 2011

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Sinovel is also at the forefront of the development of higher capacity turbines. It produced Chinas first 6-MW wind turbine in May, and is currently developing a 10-MW model. However, Sinovel faces strong competition. For instance in October 2010 the Xiangtan Electric Machinery Company produced Chinas first 5-MW direct-drive permanent magnetic offshore wind turbine, with the the Hunan-based company planning to install prototype turbines both in Fujian province and in the Netherlands. To date, China has installed only 142.5 MW of offshore wind turbines. This is less than 10% of the countrys onshore wind farm capacity and a small percentage of global offshore wind capacity. But with an urgent need for additional electricity generation resources and a very large offshore wind power resource, the offshore wind market is growing fast.

According to the China Meteorological Administration, China could host about 200,000 MW of potential offshore wind capacity in areas with five to 25 meters of water depth and where the turbines are erected 50 meters above sea level. The National Energy Bureau is currently drafting detailed provisions governing offshore wind power developments, following on from an interim measure promulgated in 2010, the Xinhua report said. The new rules will underpin government plans to raise installed offshore wind farm capacity to 5,000 MW by 2015 and 30,000 MW by 2020. The NEB is also considering the launch of a second tender for offshore wind power concessions, the report said. It noted that the offer planned in the first half of 2012 would cover 2,000 MW of plant, or double the capacity included in the first tender completed in 2010 in Jiangsu province.

Juggling Southeast Asias power needs


As Thailands political landscape looks set to be reshaped again following the July 3 elections, the complex mosaic of regional politics within the Association of Southeast Asian Nations (Asean) also faces another period of readjustment. Against this background the member states of Asean nevertheless continue to view power sector integration as one of the best means of driving broader regional integration. Cross-border electricity trade not only generates export revenues and makes more efficient use of energy resources, but in such a hydroelectric-dependent region can also encourage neighboring states to cooperate in managing their water resources. Yet political differences are hampering more rapid power sector integration and there are fears that the Mekong Basin could be subjected to one dam too many. Cooperation on resource management is becoming increasingly important in Southeast Asia. The nations of the Mekong Basin are experiencing rapid population growth, industrialization and economic growth, all helping drive much-increased demand for electricity. Fast-growing Vietnam is joining the well-established power importer Thailand in offering export opportunities for power producers in neighboring states. Thermal generators are an option but large hydroelectric projects are attracting as much attention as ever. The government of Vietnam is keen to argue that the region needs to promote low-carbon power production to help tackle climate change. It forecasts that 11% of the Red River Delta and 40% of the Mekong River Delta will be submerged by 2100, affecting the countrys main rice producing areas and fishing communities. In addition, 20% of Ho Cho Minh City is projected to be under water by 2100, with a massive impact on national economic growth, as well as more localized socio-economic development. Vietnamese deputy prime minister, Hoang Trung Hai, has said that Southeast Asia is one of the most vulnerable regions to climate change. A sustainable economic development model for a developing country such as Vietnam is extremely important. No matter how difficult it may be, its not impossible. Such thinking is driving continued hydroelectric development in the region as well as plans for nuclear energy. Although there are no commercial reactors in Asean, countries such as Indonesia, Malaysia, Thailand and Vietnam are at various stages of implementing nuclear programs. The regions relative proximity to Japan and the Fukushima disaster do not seem to have dented these ambitions. During a visit to Japan in May, Hai said the Japanese accident has made each country rethink its nuclear energy policy. But for Vietnam, the government has decided to go ahead and build nuclear power plants. In the first instance four 1,000-megawatt (MW) reactors are being developed by Russian and Japanese consortia, with the first reactor scheduled to enter operation in 2020.

Power in AsiA / issue 582 / July 7, 2011

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Policy

The Xayaburi dispute


While other Asean countries may follow Vietnam in building reactors, more capacity is likely to come from hydroelectric projects in the near to medium term. The rivers of Southeast Asia are already heavily dammed but developers have thus far refrained from constructing hydropower plants on the mainstream of the Mekong outside China because of the possible impact on neighboring states. This could change with the 1,285-MW Xayaburi project in Laos, which is predicated on exporting most of its output to Thailand. However in May, following intense discussions with Cambodia, Thailand and Vietnam, Vientiane agreed to postpone final approval for what would be the first dam project on the mainstream of the lower Mekong, with the four governments agreeing that a strategic, long-term view of the development of the Lower Mekong Basin was required. Opposition to the construction of dams on the upper reaches of the Mekong, as far north as China and Myanmar, has centered on the impact on people who live and work in the Mekong Delta. It has been argued that developing dams further downstream would have an even bigger impact on the rice-growing delta areas. Cambodia and Vietnam fear that Xayaburi could have an adverse impact on downstream fish stocks and irrigation levels. They are also worried that it could open the flood gates for other projects on the lower reaches of the Mekong, with at least nine dams planned in Laos and two in Cambodia. Vietnam has thus called for the imposition of a ten-year moratorium on the construction of dams on the Mekong itself. However, dam construction continues apace on tributaries of the Mekong and other river systems in the region, not least in Vietnam. The state-owned power utility Electricity of Vietnams 2,400-MW Son La project on the Da River has started initial operation, while EVN has also started work on the 1,200-MW Lai Chau project and progress is being made on a host of small to medium-sized projects. Meanwhile in Laos a large number of projects are under way, based on power sales to Thailand and Vietnam as well as the domestic market. The projects include the Asian Development Bank (ADB) and World Bank-funded 1,075-MW Nam Theun-2 project, which is now fully operational. Given the number and complexity of the projects, and their impact both on each other and the wider environment, the Mekong River Commission together with the ADB and World Wide Fund for Nature (WWF) have funded the development of the rapid basinwide hydropower sustainable development tool. The application assesses social, environmental, cultural,

economic and financial information on a river basin to decide whether the advantages of a dam project outweigh any damage caused. Marc Goichot, the senior infrastructure advisor for the WWF Greater Mekong Program, described the tool, known as RSAT, as a breakthrough in sustainable hydropower development because it allows for hydropower projects to be assessed within the basin-wide context, rather than on a case-by-case basis. The sustainability of hydropower projects cannot be assessed in isolation from one another. Their cumulative impacts need to be considered and this is the only way to ensure the ecosystems and the services they provide are conserved, Goichot said. The fact that the four lower riparian states have discussed their differences over the Xayaburi project and Laos agreed to postpone its decision has been seen by some analysts as a victory for diplomatic cooperation in Southeast Asia, and as boding well for future steps towards economic and power sector integration. But on June 23 the International Rivers organization said in a statement that Laos appears to have defied its neighbors in a move to press ahead with the proposed Xayaburi dam on the Mekong mainstream, despite concerns raised by neighboring governments and regional civil society groups. Citing a letter dated June 8, 2011, which had been leaked to the organization and written by the director-general of the Laotian Ministry of Energy and Mines to the Xayaburi Power Company Limited, International Rivers said that Xayaburis lead developer, Thailands Ch. Karnchang, had been told in the letter that the Mekong River Commissions (MRC) regional decision-making process is now complete, with the organization adding presumably giving Ch. Karnchang the green light to proceed with the project. Ame Trandem, Mekong Campaigner with International Rivers, said that the MRC itself, however, is yet to officially announce the regional process as complete, and noted that the four member governments had agreed to defer the decision on the project to a ministerial level meeting, likely to take place in October or November 2011. Trandem observed that completion of the regional process is a prerequisite to the Xayaburi Dam developers signing a power purchase agreement with the Electricity Generating Authority of Thailand, which the company is now seeking.

Political differences
While it remains to be seen how these claims of unilateral Laotian action will play out, analysts do note that Asean and other multilateral agencies have to date had limited success in settling long-running border disputes in the region, including that between Cambodia and Thailand. This dispute is again threatening to undo much of the work achieved to date with regards to regional cooperation.

Power in AsiA / issue 582 / July 7, 2011

AnAlysis

Policy

The conflict centers on the ownership of territory surrounding the Preah Vihear temple. The International Court of Justice (ICJ) awarded sovereignty of the temple to Cambodia in 1962, but Bangkok insists that the ruling relates to the temple and not to a 4.6-square-kilometer area of land to one side of the temple. The dispute has simmered since 1962, but came to the fore in 2008 when Cambodia applied for Unesco World Heritage status for the temple. Thailand stepped up its military presence in the region and several soldiers were killed in July 2008 in the first of a series of continuing skirmishes between the two forces. Tensions were exacerbated by the presence of Thaksin Shinawatra in Cambodia at one stage. Sacked in September 2006, the former Thai prime minister was sentenced to two years in prison for corruption in his absence, but Cambodia granted him protection and appointed him as a government advisor in November 2009. In May 2011, Phnom Penh referred the Preah Vihear dispute to the ICJ and rejected Bangkoks request that the dispute should be settled through bilateral talks. The dispute has affected the settlement of maritime boundaries in the potentially oil and gas rich Gulf of Thailand. Some 26,000 square kilometers are claimed by both Thailand and Cambodia, with a memorandum of understanding on cooperation in the disputed zone having been signed in 2001 but unilaterally cancelled by Bangkok in 2009. Both countries have attempted to license hydrocarbon concessions in the area. Much will depend here and in the Preah Vihear dispute on the repercussions of Thailands national elections, which took place on July 3. Prior to the polls the then government of Abhisit Vejjajiva took a hard line on the dispute to bolster electoral support in the deeply-divided country, where a return to the former tradition of military intervention is seen by some commentators as a real possibility. But with electoral triumph for the party led by Thaksins sister, relations with Cambodia - the country which took him in at one stage - could well improve. Either way, given Thailands pivotal economic position in the region, developments in the country and the evolution of its border dispute with Cambodia could have a real impact on regional relations, and on efforts to promote power sector integration.

Limited links between Vietnam and Cambodia are also expected to increase. At the same time the net flow of power is projected to reverse once the Sesan-2 and other Cambodian hydroelectric projects allow largevolume exports to Vietnam instead of localized imports. The role of China is less clear. It is already connected to the Vietnamese grid and could become a market for lower Mekong power, although the link is currently used to export power from China. New connections are being developed at a fast pace. For instance Vietnams Ministry of Industry and Trade has directed EVN to finalize plans to upgrade transmission links with China to 500 kV, while upgraded and additional cross-border links are planned between Vietnam and Laos to ease trade between the two countries, Thailand and Myanmar. But the various interconnections still have to be welded into a cohesive regional grid capable of moving power on an optimal basis - both physically through sufficient wires and generators, and economically through a pool or other market-based electricity trading structure. And one of the main constraints to moving to this physical and commercial structure is the impact of politics on projects integral to the region-wide development of crossborder electricity sales, such as the indefinite deferment in 2008 of Koh Kong Powers 3,600-MW coal-fired generator in Cambodia, which was predicated on exports to Thailand. As always, organizations such as Asean are only as strong as their member states. The organizations cannot solve land and maritime border disputes - or develop a regional power market - without the cooperation of the countries involved. But at the same time governments across the region will not easily give up the benefits accrued from decades of economic cooperation. Resolving the disputes may prove problematic, but recourse to war is now less of an option than it would have been without Asean or the other agencies involved. At root, the historical enmity between the former kingdoms of Khmer and Siam runs deep, but neither side has much to gain from armed conflict and a lot to lose. The same applies to other political disputes within the region. It thus seems likely that the process of regional power sector integration will continue. For the present it seems likely to be based on the continued piecemeal development of bilateral projects, rather than the topdown imposition of a grand scheme for a regional grid. But once sufficient building blocks are in place the benefits of the shift to regional power trading could see pragmatism overcome historical differences.

Cross-border links
The physical infrastructure required to enable much greater cross-border electricity trading is gradually being put in place. Links between Laos and Thailand have been in place for some time, while interconnections between Laos and Vietnam are being established.

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Power in AsiA / issue 582 / July 7, 2011

Project trAcker

june 2011

PiA project tracker for June 2011


The Power in Asia monthly project tracker briefly lists projects under development or construction in Asia-Pacific whose status changed during the past month, in this case June 2011. It is not a comprehensive listing of all the projects under development or construction in the region, but is intended to help Power in Asia subscribers to track progress on projects from their initial announcement to entry into commercial operation and beyond by flagging key milestones. The milestones include initial announcement; planning approval; signing of power purchase, implementation, fuel supply and other project agreements; award of turnkey or EPC contracts, financial completion, commencement of construction and commencement of commercial operation. The monthly tracker is complemented by quarterly, country and company-based tracker products. To provide information on projects contact the editor at martin_daniel@platts.com

Projects changing status in June 2011


Country Australia Australia Australia Australia Bangladesh Bangladesh Bangladesh Bangladesh Bangladesh Bangladesh Bangladesh Bangladesh Bangladesh China China China China China China China China China China China China India India India India India India India India India India India Project Collgar Kogan Creek Moree Mumbida Bibiyana-1 Bibiyana-2 Gabtoli Haripur Keraniganj Meghnaghat Narayanganj Natore Noapara Anqiu Dayuanshan Golmud Hami Hotan Jinling Kumul Rudong Turpan Xiangjiaba-1 Wangqing Wulan Bhagirathi Darlipali Dhule Eppodum Gajmara Kakrapar Kudgi Lara Mandya Mundra Rajasthan-7/8 Owner UBS IIF/REST Solar Dawn Moree Solar Mumbida Wind Summit Summit ECGB Summit/GE Digital Power Lagdanbo/Dhaka West Khanjahan Ali Power Anqiu Power Datang Power Huanghe Hydropower CPI Xinjiang CPI Xinjiang HPI/PetroChina CPI Xinjiang Longyuan CPI Xinjiang Three Gorges Power Changchun Yongtou Huanghe Hydropower THDC NTPC Ltd MSPGC Beta Wind NTPC Ltd Npcil NTPC Ltd NTPC Ltd KPCL Adani Power Npcil MW 206 250 150 55 341 341 410 335 102 52 40 30 49 80 20 20 400 20 48 20 812 50 30 1000 1,600 75 31 1,600 1400 2,400 1,600 5 660 1400 Fuel Wind Solar/gas Solar Wind Gas Gas Fuel oil Gas Fuel oil Gas/HFO Fuel oil Fuel oil HFO Biomass Wind Solar Solar Solar Gas Solar Wind Solar Hydro Biomass Solar PS Coal Solar Wind Coal Nuclear Coal Coal Solar Coal Nuclear Operation 2011 2015 2015 2012 2014 2014 2012 2013 2012 2014 2012 2012 2011 2012 2012 2012 2012 2012 2015 2012 2012 2012 2012 2012 2012 2016 2015 2012 2012 2015 2015 2014 2015 2012 2011 2016 Status (PiA issue) Operation (580) Finance (582) Finance (582) EPC contract (582) EPC contract (581) EPC contract (581) Awarded (581) Construction (581) Awarded (581) Construction (581) Awarded (581) Awarded (581) Term finance (582) Term finance (581) Equipment contract (582) Equipment contract (582) Construction (580) Approval (580) Approval (581) Approval (580) Equipment contract (582) Approval (580) Equipment delivered (580) CDM award (580) Equipment contract (582) EPC contract (582) Equipment tender (580) EPC contract (580) Equipment contract (581) Equipment tender (580) Equipment contract (582) Equipment tender (580) Equipment tender (580) Construction (581) Operational (581) Equipment contract (582)

Fujian Longking/ Dhaka N. 108 Fujian Longking/ Dhaka W. 108

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Projects changing status in June 2011 (continued)


Country India India India India Indonesia Indonesia Indonesia Indonesia Iraq Japan Japan Japan Laos Malaysia Project Rajasthan Sipat Siveganga Sutlej Batam Pemalang Rantau Dedap Upper Cisokan Akaz Hokkaido Oyasu Various Xepian-Xenamnoy Kimanis Owner Alstonfield/T-Solar NTPC Sapphire Indl JPVL PT Tunas J-Power, Adaro, Itochu Rantau Dedap JV PLN Akaz Power Idemitsu Kosan/Inpex Idemitsu Kosan/Inpex Softbank Kimanis Power Contact Energy Meridian Energy Norske Skog Mighty River Power Meridian Energy Contact Energy Foundation Power Hubco Laraib Energy Aboitiz Power A.Brown Co Semirara Mining South Luzon Energy Therma South (Aboitiz) Kepco Salcon Power RP Energy Ras Girtas Power Hail Cement Acwa Power SEC Marafiq Kospo Yeosu NIC Senok Amata B.Grimm Power Egat Nava Nakorn EGC J-Power Conergy/Annex Power Egat To be decided Dewa PV Power MW 5 660 5 1,000 5 2,000 220 1,000 250 n/a n/a 200 300 504 76 5 82 35 200 177 214 84 35 200 600 135 300 200 600 2,730 52 1,964 1,200 850 2,000 48 20 240 782 122 1,600 12 769 1,500 3,000 125 Fuel Solar Coal Solar Hydro Gas Coal P. Storage Gas Geothermal Geothermal Solar Hydro Gas Wind Wind Operation 2012 2011 2012 2011 2011 2017 2016 2013 tbd tbd 2012 2018 2014 tbd tbd Status (PiA issue) Construction (581) Operational (582) IFC finance (581) First unit operation (580) Operational (581) Sponsor selected (580) JV formed (582) WB funding (580) EPC contract (582) Announced (582) Announced (582) Finance agreed (580) JV formed (582) EPC contract (580) Approval (580) Submitted for approval (582) EPC contract (580) Announced (581) Local approval (582) Operation (580) Operation (580) Operation (580) O&M contract (582) Operational (581) Company approval (582) Company approval (582) New sponsor (582) Announced (580) Operational (582) New sponsor (582) Operation (580) EPC contract (582) Preferred bidder (580) Term finance (582) Equipment contract (581) Equipment contract (580) Equipment contract (581) IFC finance (581) OE appointed (581) EPC contract (582) Approval (581) New site (580) Construction (580) EPC contract (582) Pre-bid conference (582) Capacity increased (582) Finance Secured (580)

Geothermal 2016

SK Energy, Kewepo, Ratch 390

New Zealand Hauauru ma raki New Zealand Hurunui New Zealand Kawerau New Zealand Ngatamariki New Zealand Pukaki New Zealand Stratford Pakistan Pakistan Pakistan Philippines Philippines Philippines Philippines Philippines Philippines Philippines Qatar Fauji Dharki Narowal New Bong AJK Ambuklao-1 Concepcion Calaca Calaca Davao Naga Subic Bay Ras Laffan-C

Geothermal 2013 Geothermal 2013 Hydro Gas Gas Fuel Oil Hydro Hydro Coal Coal Coal Coal Coal Coal Gas HFO Gas Oil Coal Coal Wind Gas Gas Gas Gas Solar Gas Gas Coal Hydro tbd 2011 2011 2011 2012 2011 2014 2014 2014 2014 2011 2014 2011 2012 2014 2014 2015 2012 2012 2014 2014 2016 2015 2012 2014 2016 tbd 2013

Saudi Arabia Hail Saudi Arabia Qurrayah-1 Saudi Arabia Shoaiba-3 Saudi Arabia Yanbu-2 South Korea Samcheok South Korea Yeosu NIC Sri Lanka Thailand Thailand Thailand Thailand Thailand Thailand UAE UAE Vietnam Kalpitiya Amata City Chana Nava Nakorn U-Thai Various Wang Noi-4 Hassyan-1 n/a Dak Drinh

Crude/HFO 2011

Source: Platts Power in Asia

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WeSt ASIA
Iraq

Lanco gets Akaz ePC contract


The engineering, procurement and construction (EPC) contract for a 250-megawatt power plant has been awarded to Indias Lanco Infratech Limited. The Akaz open-cycle project in Al Anbar province will comprise two 125-MW gas turbines. The two Frame 9E gas turbine generator sets will be supplied by the USs General Electric International, Inc, Lanco Infratech said in a statement. The project is scheduled to be completed in 16 months under the terms of the EPC contract, which the New Delhi-based Lanco Infratech said was worth $81.3 million - equivalent to $325/kW. Lanco Infratech said that the project was its first international EPC contract. L Madhusudhan Rao, the companys executive chairman, said that this is a major milestone for us as it is in line with our strategy to win external contracts. Rao noted that external contracts referred to those awarded by companies other than Lanco Infratech itself, whether in India or overseas. The companys own power generation portfolio includes 3,292 MW of installed capacity. Rao noted that during the year ending March 31, 2011 Lanco Infratech had been awarded several external contracts in India. These included an EPC contract for a 1,200-MW thermal project from the Moser Baer Group, the balance of plant contract for the Maharashtra state generator Mahagencos 1,980-MW Koradi project near Nagpur, and an EPC contract, again from Mahagenco, for a 75-MW solar power project.

Kuwait received 11 LNG cargoes from August to October 2009, with the figure rising to 33 cargoes from April to October 2010. KPC now expects 43 to 47 cargoes to be delivered from March to November 2011. LNG imports now meet 15% of Kuwaiti gas demand, Loughani said. Associated gas output currently totals about 1 billion cubic feet/day, while non-associated gas output totals around 0.175 Bcf/d. Kuwait is planning to increase its non-associated gas production to around 1 Bcf/d by 2016.

Saudi Arabia

Wrtsil gets Hail ePC contract


The Finnish power equipment manufacturer Wrtsil has been awarded the engineering, equipment and construction contract for a captive power plant at Hail. The contract for the 52-megawatt plant has been awarded by Hail Cement. Wrtsil said that its scope of supply under the contract included seven 20V32 generating sets. The engines will run on heavy fuel oil, but can switch to light fuel oil as a back-up fuel, the company said. Wrtsil said that the equipment is scheduled to be delivered during 2012. Construction of the plant is scheduled to take approximately 15 months it added. About 70% of the countrys cement manufacturing facilities are powered by Wrtsil power plants, the company said. Wrtsil said that it has installed almost 1,400 MW of total capacity in the country. Nine of the plants with 330 MW of capacity are operated by Wrtsil under operation and management service agreements, the company added.

SeC secures Shoaiba finance


The state-controlled Saudi Electricity Company (SEC) has secured $989.1 million of long-term debt for the 1,200-megawatt third-phase expansion project at the Shoaiba generating complex. The 12-year export credit facility was extended by a bank group including HSBC, Bank of TokyoMitsubishi, Sumitomo Mitsui, and Deutsche Bank and covers equipment and services provided by Frances Alstom. The 5,600-MW Shoaiba crude and heavy fuel oil-fired complex to the south of Jeddah in the Western Region comprises fourteen 400-MW steam turbine units which are being installed in three stages by a consortium led by Alstom and including the local Saudi Archirodon Construction. The 2,000-MW first stage comprised five sets. The first three units were built under an $850-million contract awarded in 1998 and completed in 2001 using finance from the Al-Rajhi Banking and Investment Corporation.

Kuwait

Gas imports set to rise


The country could import up to 47 cargoes of liquefied natural gas in 2011 in the face of increasing gas demand according to Jamal al-Loughani, the deputy managing director for marketing for the Kuwait Petroleum Corporation (KPC). Kuwait began importing LNG in 2009 as local gas production fell behind the burgeoning growth in gas demand. This resulted in particular from the surge in electricity demand needed to operate air conditioning units during the summer peak period. Loughani told a London gas conference in late June that KPC has decided to extend the import period to eight months, so we are expecting the total amount of cargoes to be 43-47 this year.

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The fourth and fifth units entered operation in 2003 under a Eur440 million contract awarded in January 2001. The 2,400-MW second stage comprises six units built under contracts awarded in March 2004 and March 2005. The six units entered operation from 2008. SEC plans to add 1,826 MW of capacity to its 50,000-MW generating portfolio in 2011. It will add a further 12,752 MW from 2012 to 2016, in line with its target of increasing capacity to at least 80,000 MW by 2020.

L&t wins transmission contract


The local subsidiary of Indias Larsen & Toubro has secured an engineering, procurement and construction (EPC) contract for the construction of 225 kilometers of 380-kilovolt transmission lines from the Saudi Electricity Company (SEC). L&T Saudi Arabia LLC said the line was connected with the Haramain high-speed railway project. L&T Saudi Arabia LLC said the contract was worth the equivalent of $132.7 million. It added that the project must be completed in 24 months. The contract is one of a number of transmission projects won in the Gulf region by L&T in recent weeks. In the United Arab Emirates L&T has won a $93.7-million EPC contract from the Abu Dhabi Ports Company for five medium-voltage substations and associated 33-kilovolt cabling works at the Khalifa Port & Industrial Zone project, with L&T saying that the work under the contract must be completed in 18 months. L&T added that it is also executing a contract covering three substations including 230 kilometers of 33-kV cabling for ADPC at Khalifa Port. And in Dubai, L&T has won a $16.8-million contract from the state-owned Dubai Electricity & Water Authority for 132-kV cabling and associated works. The contract must be completed in 11 months. Elsewhere L&T has secured a $41-million EPC contract in Qatar from the state-run Qatar General Electricity & Water Corporation for the engineering, supply, installation, testing and commissioning of 66 kilometers of 220-kV underground cabling. And a joint venture company in Oman - L&T Oman LLC - has secured a $19.3-million order for 3-MV substations and associated 33-kV cabling works from the Muscat Electricity Distribution Company, L&T said.

Hassyan-1 power and desalination project included attendees from Japan, South Korea, Southeast Asia, India, Europe, United States and countries from the Gulf Cooperation Council, according to local media reports. The Hassyan-1 natural gas-fired, combined-cycle plant will comprise 1,500 megawatts of electric capacity, and is due to enter operation between 2014 and 2016. The successful bidder, who can be either a company or consortium, will own 49% of the special purpose vehicle formed to implement Hassyan-1, with Dewa owning the remaining 51% of the equity. To date, Dubai has eschewed private investment in its power sector or the privatization of its existing assets. Dewa thus owns all of the emirates current 8,519 MW of electric and 400 million imperial gallons per day of desalinated water capacity, with the capacity scheduled to increase to 10,000 MW and 400 migd by the end of the year. Meanwhile in a separate development Dewa has said that it may double the proposed capacity of its first coal-fired project. Dewas chief executive officer, Saeed Mohammed Al Tayer, told a press conference that the utility is considering doubling from 1,500 MW to 3,000 MW the size of the planned coal-fired plant to cut the emirates reliance on gas, much of which is now imported. Al Tayer said that Dubai plans to produce no more than 70% of its power from gas in the future. The rest will come from coal, nuclear reactors and renewable energy. Dewa has been planning a coal-fired plant for some time, with various technologies and project sizes being proposed. For instance, in 2008 a 2,000-MW integrated coal gasification combined-cycle project was proposed by a Chinese group. In its most recent incarnation, Dewa sought consultants for a study into the coal-fired project in late 2010. From a field of about sixteen companies and consortia, Dewa appointed a team including McKinsey & Company, Black & Veatch, and Allen & Overy in May 2011. Completion of the study is scheduled for late 2011. Dubai used about 33 TWh of electricity in 2010 when peak demand exceeded 6,160 MW. Al Tayer said that demand was projected to increase by 5% in 2011 but could increase by up to 7%.

SoutH ASIA
Bangladesh

United Arab Emirates

Dewa advances Hassyan-1 tender


The state-owned Dubai Electricity & Water Authority (Dewa) held the pre-bid conference for its pioneering independent water and power producer (IWPP) project on June 26. The eighteen would-be developers of the

Captive plant gets finance


The local division of the Standard Chartered Bank has said that it will extend $19.5 million of debt finance to a heavy fuel oil-fired power plant at Noapara in

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Jessore. We are proud to be the sole financer for this 40-megawatt power plant, Standard Chartered Bank, Bangladeshs chief executive officer Jim McCabe told the contract signing ceremony. The finance will go to the Khanjahan Ali Power Company Ltd, which is controlled by the local United Group Ltd. United Groups chairman, Hasan Mahmood Raja, said that Standard Chartered had come forward to finance a viable project and has provided us the right financial package with pertinent currency and interest rate hedging tools. The repayment period is 56 months, excluding a three-month grace period, from the date of first disbursement. The interest rate is Libor plus 4.0%. The plant will use around 200 metric tons/day of heavy fuel, or furnace, oil. The company has set up two oil tanks with 15,000 mt and 10,000 mt of capacity to ensure uninterrupted power supply from the plant. Bangladeshs central bank had on June 12 approved proposals for two power projects to receive $45.5 million from Standard Charted Bank. United Ashuganj Power Limited will receive the remaining $26 million.

Jammu & Kashmir gets new hydro power developer


Hydropower projects with 2,100 megawatts of capacity are to be developed in Jammu & Kashmir state by Chenab Valley Power Projects Pvt. Ltd. The newlyformed company is a joint venture between the central government-owned hydroelectric company NHPC Ltd and the state-owned Jammu & Kashmir State Power Development Corporation, each with 49% interests, and the power trader PTC India with a 2% stake. The joint venture was announced after a senior minister in the Jammu & Kashmir cabinet accused NHPC in June of exploiting the water resources of poor states. The 690-MW Salal hydroelectric project on the Chenab River is the biggest scheme developed by NHPC in Jammu & Kashmir. The power-starved state gets 12% of the electricity from the project, which started construction in the early 1970s. But state minister Taj Mohiuddin claimed the state was entitled to 50% of the power under the original agreement signed between the state government and NHPC. NHPC owns 1,680 MW of operational capacity in Jammu & Kashmir. The other assets include the 480-MW Uri-1, 390-MW Dulhasti, 120-MW Sewa-2, 44-MW Chutak and 45-MW Nimmo-Bazgo projects. Chenab Valley Power Projects will implement three projects. These include the 1,000-MW Pakal Dul, 600MW Kiru and 520-MW Kwar projects in the Chenab River basin. The projects are estimated to cost Rupee 150 billion ($3.3 billion) in total, of which NHPC will contribute Rupee 24 billion ($533 million) as equity, according to NHPCs chairman and managing director ABL Srivastava.

India

Punj Lloyd secures nuclear contracts


The local engineering, procurement and construction contractor Punj Lloyd has won a contract from the Nuclear Power Corporation of India Limited (Npcil). The company said in a statement that the Rupee 6.78 billion ($151 million) contract covered piping work at four 700-megawatt pressurized heavy water reactors. The scope of work includes the engineering, procurement, erection and commissioning of nuclear equipment and piping for all the systems inside the nuclear reactor buildings, Punj Lloyd said in its statement. It added that the work would be carried out at the third and fourth reactors at the Kakrapara Atomic Power Project near Surat in Gujarat state, and the seventh and eighth reactors at the Rajasthan Atomic Power Project (RAPP) near Kota in Rajasthan state. The contract is scheduled to be completed in four years, Punj Lloyd said. It added that a fellow group company, PL Engineering, is carrying out detailed design and engineering work for the balance of plant package at the RAPP-7 and 8 reactors. Atul Punj, the chairman of Punj Lloyd, noted that India has a booming nuclear power sector. He added that the government has the ambitious nuclear power target of achieving 63,000 MW by 2032.

More transmission lines on offer


The government is inviting private investors to develop 2,600 kilometers of transmission lines associated with the evacuation of output from independent power producer (IPP) projects in Andhra Pradesh state. According to a Power Ministry statement, a senior ministry committee has recommended that the links should be built with private sector participation based on a tariff-based competitive bidding process. The statement said that total investment in the lines is estimated at Rupee 64.85 billion ($1.44 billion). The 765-kilovolt lines will help evacuate power from IPP projects proposed in the Vemagiri and Rajamundry coastal areas of Andhra Pradesh. Package A includes the 250-kilometer Nagapattinam-Salem line, while Package C includes the 250-km Salem-Madhugiri, 350-km MadhgiriNarendra and 350-km Kolhapur-Padghe lines which will serve projects in the Nagapattinam and Cuddalore areas of Rajamundry.

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The other transmission links in Package A include the 250-km Vemagiri-Khammam and 250-km KhammamHyderabad lines, while Package B has the 250-km Vemagiri-Khammam and 250-km Khammam-Hyderabad lines, and Package C has the 1,040-km Wardha-Jabalpur line. All of these links are associated with IPPs in the Vemagiri area.

NtPC commissions Sipat unit


The central government-owned generator NTPC Ltd has commissioned the first of three 660-megawatt (MW) units at its Sipat Super-thermal Power Station. The set has increased the companys capacity to 34,854 MW. NTPCs first supercritical unit, the set is expected to be the first of many. The countrys biggest power generating company plans that most of the capacity it commissions over the next five years will have supercritical parameters. NTPC is targeting the construction of up to 50,000 MW of new plant by 2017, with only a small contribution coming from hydroelectric and renewable energy capacity. NTPC is currently evaluating the results of tenders for equipment including eleven 660-MW and nine 800-MW supercritical coal-fired units. Under the tenders, some units will initially be imported with a progressive switch to the domestic manufacture of the other units. In addition, NTPC together with the central government-controlled power equipment manufacturer Bharat Heavy Electricals Limited and the Indira Gandhi Center of Advanced Research are looking at the indigenous development of advance ultrasupercritical technology. NTPC noted that these supercritical units will achieve much higher generation efficiency and are critical components of NTPCs low carbon growth strategy. The 2,980-MW Sipat plant in Chhattisgarh state will have three 660-MW units on top of the two 500-MW sets already operating there. The two other 660-MW units are due to be commissioned later this year, with the electricity to be sold to western region states including Chhattigarh, Gujarat, Madhya Pradesh, Maharashtra, Goa, Daman and Diu, and Dadra Nagar Haveli. The only other plant where NTPC is currently constructing supercritical units is at Barh in Bihar state, where three 660-MW sets are planned.

The consortium will install a 1,000-megawatt pumpedstorage plant on the Bhagirathi River in Uttarakhand state. The project will be Indias first pumped-storage power plant to use variable-speed technology, Alstom said. The company added that its share of the contract was worth around Eur180 million. Alstom said that it will supply four 250-MW turbine and generator units and other equipment, including the main inlet valves and control and protection systems. On completion, the plants electricity output will provide much-needed power to the countrys northern grid, it said.

Nepal

WB backs transmission project


The World Bank has approved a $99-million concessional loan and grant package for the Nepal-India Electricity Transmission and Trade Project (NIETTP). The project is intended to assist efforts of the government of Nepal to mitigate a national energy crisis, the Washington, DC-based multilateral said. The Bank noted that only 46% of the Nepalese population has access to electricity. It added that rationing of electricity is common, with some areas receiving electricity for as little as eight hours a day during the dry winter season. As background, the Bank said that the government had declared a national energy crisis in December 2008 in response to the worsening electricity situation. At the same time, it approved an Electricity Crisis Management Action Plan which is currently being implemented with support from the Bank. The plan includes development of the DhalkebarMuzaffarpur transmission link, which the Bank noted is a key component of the NIETTP and the first major cross-border transmission line between India and Nepal developed on a commercial basis. It added that on scheduled completion of the 1,000-megawatt link in 2015, Nepal could end electricity rationing since it will provide at least 100 MW of additional imports from India. The project will also develop key segments of the backbone high-voltage system to help expand electricity access across Nepal. And Susan Goldmark, the Banks Nepal country director, noted that once Nepal develops its hydropower potential and meets all of its domestic needs, this transmission infrastructure could also be used to carry surplus hydropower to India. Apart from the World Bank, the $202-million NIETTP is supported by private sector and development partners as well as the governments of Nepal and India. The Banks package for the project comprises an $84-million IDA credit and a $15-million grant, with the credit line having a 0.75% service charge, 10-year grace period and 40-year maturity.

tHDC awards pumped-storage contract


A consortium comprising Frances Alstom and the local Hindustan Construction Company has been awarded a contract worth more than Eur285 million ($412.5 million) by the Tehri Hydro Development Corporation.

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Pakistan

tNB Remaco secures o&M contract


Malaysias TNB Repair and Maintenance Sdn Bhd (TNB Remaco) has signed the operation and maintenance agreement for a hydroelectric project on the Jhelum River in Azad Jammu and Kashmir. TNB Remaco is a wholly-owned subsidiary of the Malaysian state-controlled power utility Tenaga Nasional Berhad. The contract was awarded by Laraib Energy Limited, which is 75% owned by the Hub Power Company Limited. Laraib Energy owns the 84-megawatt New Bong Escape independent power producer project. The contract will run for an initial period of five years with an option to extend it for another seven years, TNB Remaco said. TNB Remaco noted that its collaboration with Hub Power had begun with the operation and maintenance agreement for the 213.6-MW residual fuel oil-fired diesel cogeneration plant in the Narowal District of Punjab province. That contract was signed in February 2010.

involved in the oil and gas industry and in geothermal development and operations in Indonesia for the past 10 years. It added that Supreme Energy won the right to carry out preliminary feasibility studies in three of the best geothermal areas in Indonesia and successfully secured the mining licenses in all three in competitive tenders. International Power Suez has 1,280 MW of operating plant and a further 815 MW of independent power producer capacity under construction at Paiton on Java. All 2,095 MW of the capacity is coal fired.

Laos

Hydropower project signs agreement


The shareholders agreement for the Xe-Pian Xe-Namnoy hydroelectric project has been signed, according to Thailands Ratchaburi Electricity Generating Holding Company (Ratch), which is one of the sponsors. The independent power producer project straddling Attapue and Champasak provinces will have 390 megawatts of capacity. Xe-Pian Xe-Namnoy has an estimated cost of Baht 27 billion ($874 million), equivalent to $2,241/kW. Apart from Ratch with a 25% stake, the sponsors include South Koreas SK Engineering and Construction Company (26%) and Korea Western Power Company (25%) with the local Lao Holding State Enterprise (24%). Ratch said the final power purchase agreement is currently under negotiation with the state-owned Electricity Generating Authority of Thailand (Egat), which will buy the majority of the output. The PPA will be concluded by the end of this year, Ratch said, noting that a memorandum of understanding relating to the power sales tariff had been signed with Egat in August 2010. According to Thailands 2010 Power Development Plan, the project is scheduled to begin dispatching electricity by 2018. The power will be imported through Egats 500-kilovolt transmission system in Ubon Ratchathani province. Noppol Milinthanggoon, the chief executive officer of Ratch, said Xe-Pian Xe-Namnoy is the companys fourth investment in the Laotian private power sector. And overall, it enhanced the companys total generating capacity to 5,648 megawatts according to its shareholding in existing and developing power plant projects, he said. Ratchs other IPP projects in Laos include the operating 615-MW Nam Ngum-2 hydroelectric project. It additionally owns a 40% interest in the 1,878-MW Hongsa lignite-fired project and 25% stake in the 440MW Nam Ngum-3 hydroelectric project, which are both under construction.

SoutHeASt ASIA
Indonesia

Rantau Dedap JV formed


A joint venture comprising the local developer PT Supreme Energy, Frances GDF Suez through its UK-based subsidiary International Power, and Japans Marubeni Corporation has been formed to implement a geothermal power project in the Rantau Dedap area of South Sumatra province. International Power and Marubeni will both take 35% interests in the project. Supreme Energy won the tender for the concession and was subsequently awarded the geothermal mining license. International Power and Marubeni have now joined the special purpose vehicle PT Supreme Energy Rantau Dedap, which will negotiate a power purchase agreement with the state power utility PT Perusahaan Listrik Negara. Once the PPA is signed, the joint venture will start developing the geothermal field and a 220-megawatt independent power producer plant. The project, which is scheduled to enter commercial operation in 2016 at an estimated cost of up to $800 million, forms part of the governments second 10,000-MW fast-track power generation program. International Power noted that Supreme Energy was created in 2007 by professionals with extensive experience and knowledge of the energy business in Indonesia who have been very active and directly

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Ratch also purchased in early 2011 a 10 % stake in the locally-listed Electricit Du Laos-Generation Public Company. EDL-Gen is a generating subsidiary of the state-owned power utility Electricit Du Laos.

Malaysia

Ge wins Sabah equipment contract


The US-based power equipment and services supplier GE has said that it is supplying three Frame 6FA gas turbines, associated generators and services for Kimanis Power Sdn Bhds 300-megawatt combined-cycle project in Sabah. GE said the gas-fueled independent power producer plant will help Sabah meet its burgeoning electricity demand, which is growing by more than 7% a year. GE noted that the plant at Kimanis Bay will comprise three 100-MW combined-cycle blocks, with the configuration enhancing the plants operational flexibility, reliability and availability. It added that, as well as supplying the equipment, GE has signed an 18-year contractual service agreement for the plant. GE added that its Frame 6FA gas turbine technology had previously been used in the nearby Ranhill Powertron-2 IPP project. Kimanis Power is 60% owned by Petronas Gas Berhad, a subsidiary of the state energy company Petronas. The remaining 40% is held by a subsidiary of the Sabah state investment agency Yayasan Sabah. The entire electricity output from the project will be sold to the state-owned power utility Sabah Electricity Sdn Bhd. Full operation of the plant is planned from April 2014. Kimanis Power has already signed an engineering, procurement and construction contract for the project. The contract with an estimated cost of up to MR1.6 billion ($530 million), equivalent to $1,767/ kW, has been signed with a consortium led by Taiwans CTCI Corporation and also including the CTCI Overseas Corporation Ltd, CTCI Malaysia Sdn Bhd, Synerlitz (M) Sdn Bhd and SCHB Engineering Services Sdn Bhd. Japans Kawasaki Heavy Industries, Ltd has received the order for the three 37.6-MW steam turbine generator units from CTCI. The units are slated for delivery to Kimanis Power from June 2012.

The mandated lead arrangers and book-runners for the transaction were the Australia and New Zealand Banking Group Limited, Bank of Tokyo-Mitsubishi UFJ, Ltd, Chinatrust Commercial Bank, ING Bank NV, Maybank Group, Mizuho Corporate Banking, Ltd, and Standard Chartered Bank. EDC noted that ANZ acted as sole coordinator and documentation bank. The proceeds will be used to refinance EDCs existing three-year $175 million syndicated facility, which matures on June 17, 2013. The new loan effectively lengthens the remaining life of the existing facility from two years to six years and substantially lowers interest costs, EDC said, adding that the total firm underwritten commitment received from the seven banks was in excess of $600 million, or three times more than the target amount. EDC noted that it had issued $300 million of 10-year bonds in January 2011, with the issue being 3.5 times oversubscribed. And in May, the company signed a 15-year, $75 million facility with the International Finance Corporation. EDC said that it has a number of greenfield and expansion projects in the pipeline. Apart from domestic projects, it is eyeing potential projects in Asia and Latin America.

Thailand

egat awards Chana and Wang Noi ePC contracts


The state-owned Electricity Generating Authority of Thailand (Egat) has awarded the engineering, procurement and construction contracts for two generating projects to a consortium comprising Japans Marubeni Corporation, Germanys Siemens AG and its local subsidiary Siemens Limited, Thailand. The contracts cover the second combined-cycle block at the Chana plant and the fourth combined-cycle block at the Wang Noi complex. The 782-MW Chana project in the Chana district of Songkhla province in southern Thailand will comprise one gas and one steam turbine. The EPC contract for the Chana-2 block was valued at Yen 43.5 billion ($543 million), equivalent to $694.4/kW, with Marubeni saying that its share was Yen 20 billion. Meanwhile the 769-MW Wang Noi project in the northern suburbs of Bangkok in Ayutthaya province will comprise two gas turbines and a steam turbine at a site whose three existing blocks host 1,910 MW of capacity. The EPC contract for the Wang Noi-4 block is valued at Yen 39.5 billion ($493 million), equivalent to $641.1/ kW, with Marubeni saying that its share of the contract was worth Yen 18 billion.

Philippines

eDC closes loan facility


The Energy Development Corporation (EDC) has closed a six-year, $175-million transferable syndicated term loan facility with seven foreign banking groups. EDC is the countrys largest geothermal energy producer.

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Marubeni said that Siemens will supply the gas turbines, steam turbines and generators for both projects. Marubeni will supply the heat recovery steam generators and the balance of plant, and will also be responsible for the civil and installation works. Marubeni said that its highly-reputable presence in the market, together with the Siemens Groups superior technology resulted in a most competitive bid which led to the unprecedented double award of these two major projects. It added that Marubeni and Siemens had been awarded the first block at the Chana combined-cycle plant in 2005 and the fifth block at the Bang Pakong combined-cycle plant in 2006. The two latest awards thus mean that the companies have won four of the six large-scale combined-cycle projects developed by Egat since the 1997 Asian financial crisis, Marubeni said. Marubeni added that it has now been involved in the construction of about 7,000 MW of capacity in Thailand, representing about 25% of the countrys total installed capacity.

Anwell gets solar plant funds


The local solar power equipment manufacturer Anwell Technologies Limited has secured long-term funding from the An Yang municipal government in Henan province for its subsidiary, Henan Sungen Solar Fab Co., Ltd. The Yuan 700 million ($108.3 million) of funding includes Yuan 200 million in cash and a municipal governmentbacked guarantee for up to Yuan 500 million of bank financing. The funds will be used to increase the capacity of the groups thin film solar manufacturing plant in An Yang, Anwell Technologies said. It added that the group was planning to increase its solar panel production capacity to 1,500 megawatts within five years. The Singapore-listed company added that, in addition to this long-term funding for the An Yang plant, Anwell is also engaging separate discussions with the local government of another city in China for the funding of its second thin film solar panel production plant.

Russian gas talks at an impasse


China and Russia failed to agree the import of pipeline gas during the St Petersburg International Economic Forum in June because of the gaping price difference between the two sides. Russias Gazprom sought $350 per 1,000 cubic meters, whereas the China National Petroleum Corporation offered only $235/1,000 cu m. Valery Yazev, the head of the Russian Gas Society, observed that Russian gas prices for European sales are forecast to exceed $400/1,000 cu m in the near future. He added that Russia has no problems with markets. Gas demand in Europe is estimated to grow by 150 Bcm from the current level, while European gas production will reduce. Yazev noted that China will need [to import] around 250 Bcm/year of gas by 2030. So it has no other option but cooperate with Russia, he said. But in a report carried by the official China Daily, Pang Changwei, the director of the institute for international oil politics at China University of Petroleum in Beijing, said that even $235/1,000 cu m was on the high side, and already factored in additional Japanese demand and other considerations. At $235/1,000 cu m, the price was higher than the cost of importing LNG or developing coalbed methane in China, which are regarded as the price benchmarks for importing gas from Russia, Pang said. The China Daily report also quoted Zhang Jing, a professor at the State Councils Euro-Asian Social Development Research Institute, as saying that the price demanded by Gazprom could cause a surge in domestic prices and fuel inflation. This was something the Chinese government is unwilling to accept, Zhang said, noting that Chinas low natural gas price needs to be connected with the international level but it will take time, and there should be no rush.

CHINA
China

Vestas secures Datang order


Denmarks Vestas has received an order for the turbines for a 49.3-megawatt wind farm project. The 58 V60-850 kW wind turbines will be installed at the Dayuanshan wind farm project in Wuchuan County in the Inner Mongolia autonomous region. The order was placed by the China Datang Corporation Renewable Power Co., Ltd, which is a subsidiary of the state-owned China Datang Group. The company is one of the largest wind energy developers in China. Vestas noted that its collaboration with the Datang group had begun in 2005. Since then it has received a series of orders covering more than 800 MW of wind turbine capacity up to the end of 2010, it added. The contract includes the delivery, installation and commissioning of the wind turbines, a Scada solution and a two-year service and maintenance agreement. The turbines are scheduled to be delivered in the third quarter of 2011, Vestas said. Vestas noted that Wuchuan County is surrounded by mountains with difficult terrain conditions and elevations of between 1,800 and 2,000 meters above sea level. For such conditions, the V60-850 kW wind turbine is the best suited solution: V60s light blade design improves the overall power production; the comparatively small size of the nacelle is easy for transportation, particularly suitable for hard to reach sites, it said.

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In 2006 Moscow and Beijing signed an initial agreement on the construction of two gas pipelines. The Altai pipeline system would involve eastern and a western routes through which almost 70 Bcm/year of gas could be exported to China. In September 2010, Gazprom and CNPC signed a binding agreement on the supply of up to 30 Bcm/year of gas in the first instance. But the start of supplies from 2015 was predicated on an agreement being reached in mid 2011. Gazprom CEO Alexei Miller has said there is still a good chance that the deal could be closed by the end of 2011. He added that this would still allow for sales to begin by the end of 2015.

province. The remaining 80 MW of modules will go to a project at Golmud in Qinghai province, the company said. Liansheng Miao, the chairman and chief executive officer of Yingli Green Energy, noted that these PV power projects currently are the largest in China.

eASt ASIA
Japan

Coal use falls as oil use rises


Two out of the five coal-fired power plants that were damaged in the March 11 disaster will remain out of action until 2012 at earliest. Japanese coal market sources told Platts that the delayed return to service of the two plants would effectively translate into lost demand for imported thermal coal of about eight million metric tons per year. The five coal plants were consuming between 15 and 16 million mt/year of coal prior to the March 11 disaster, according to the sources. The continued outage of two of the plants with about 3,000 megawatts (MW) of capacity will thus halve the previous coal consumption at the facilities. The Tohoku Electric Power Companys 2,000-MW Haramachi plant and its fuel delivery infrastructure were seriously damaged in the earthquake and subsequent tsunami and are not set to return to operation until 2013, according to one source. Meanwhile 1,000 MW of capacity at the Soma Kyodo plant at Shinchi, which is owned by an equal joint venture between Tohoku Electric and the Tokyo Electric Power Company (Tepco), is now targeted for a return to service in early 2012. One of the five plants has already restarted operations. Tepcos 1,000-MW Hitachinaka plant resumed service in May. The two other plants are planned to return to operation in July. These include 1,450 MW of capacity at Nakoso in Ibaraki prefecture which is owned by the Joban Joint Power Company, another joint venture between Tepco and Tohoku Electric. Also due back on line in July is 600 MW of capacity at Tepcos Hirono complex, which - in common with Nakoso - receives its coal shipments through Onahama port. One market source said that, as a result of the various outages, Tepcos typical coal consumption of 10 million mt/year would fall by 20% in 2011. Tepcos 3,800-MW Hirono generating complex in Fukushima prefecture includes oil as well as coal-fired plant. All four of its oil-fired units with 3,200 MW of capacity are scheduled to be operational again by July, although a source told Platts that full output would not occur immediately because repairing damage to the oil storage tanks and berths would take longer than restoring the power generation units.

Nexans links with Shandong Yanggu


The French cable manufacturer Nexans and the local Shandong Yanggu Cable Group have formed a joint venture. Nexans will hold 75% in the cable manufacturing joint venture with Shandong Yanggu owning the remaining 25%. Nexans said that Shandong Yanggu was founded in 1985. Located in Shandong province it is one of the leading manufacturers of power cables in China, Nexans said, with its power cable businesses posting sales of Yuan 1.3 billion ($201 million) in 2010. On a debt and cash-free basis, the new business is valued at about Yuan 1.24 billion, Nexans said. It added that the transaction is expected to take six to eight months to complete, and is subject to various conditions including approval by the Chinese regulatory authorities. Shandong Yanggus three manufacturing facilities produce extra and high voltage, medium voltage, and low voltage power cables. It is qualified to produce 110 kilovolt and 220 kV cables for the State Grid Corporation of China (SGCC), the larger of Chinas two state-owned grid companies, and supplies energy infrastructure cables to SGCC, power generation groups and various other industries, Nexans said.

Huanghe Hydropower goes solar


The solar equipment supplier Yingli Green Energy Holding Company Limited has agreed to supply 110 megawatts of photovoltaic modules to the Huanghe Hydropower Development Co., Ltd. Huanghe Hydropower is a subsidiary of the state-owned power generation holding group China Power Investment Corporation. It is planned that the modules will be used for two ground-mounted solar projects for which Yingli Green Energy said that it will be the largest equipment supplier. All the modules are due to be delivered by August 2011, Yingli Green Energy said. Under the agreement, Yingli Green Energy will supply 30 MW of modules for a project at Wulan in Qinghai

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Even so, the increase in crude and fuel oil-fired capacity at the complex means that Tepco expects to double its oil purchases in July to 520,000 kiloliters (3.27 million barrels) from the 260,000 kl set to be purchased in June. The return of the coal and oil-fired units to service is welcome news for Tepco ahead of the start of the summer peak electricity demand season. Electricity demand is already rising as higher temperatures prompt higher air conditioner usage. In late June Tepco recorded its highest power demand, at 42,250 MW, since the March 11 disaster. Power supply capacity was 47,800 MW at the time, a company spokesman said. Meanwhile, a three-month forecast released by the Japan Meteorological Agency on June 24 said that eight of the 12 regions of the country are likely to experience above-average temperatures during the July-September period. These include the region covering Tokyo, the agency said.

Inpex added that it continues to seek business opportunities in new energy business areas with the goal of offering diversified forms of energy.

Chubu electric gets state loan


The Chubu Electric Power Company will receive Yen 100 billion ($1.24 billion) of state funding following the government-mandated suspension of operations at its Hamaoka nuclear plant. The Minister of Economy, Trade and Industry Banri Kaieda told a press conference that the concessional loan will be provided through the Development Bank of Japan. The loan will be used in large part to purchase the fuel and bought-in power needed to replace the output from the 1,137-megawatt (MW) No.4 and 1,380MW No.5 Hamaoka nuclear reactors. In mid May the government asked Chubu Electric to close the reactors until the utility had confirmed that they could withstand earthquakes and tsunamis of the level that caused the March 11 disaster. The Nagoya-based Chubu Electric agreed to the request. But it warned at the time that the process that could take up to two years and would require the purchase of a large amount of replacement energy (see PiA 578/1). In line with the fuel-purchasing policy, Chubu Electric said on June 28 that it had secured the 3.2 million metric tons of additional liquefied natural gas that it projects it will need during the fiscal year ending March 31, 2012. The fuel will come mainly from Qatar. Chubu Electric added that it had also secured 1.3 million kiloliters of oil from refiners and traders for additional requirements during the fiscal year. Chubu Electric has also lined up about 430 MW of additional fossil-fueled generating capacity for service during the summer peak period, primarily by changing maintenance schedules. As a result, the utility now anticipates that its reserve margin will reach 6% during the summer peak period - still thin, but better than the 5% it projected in late May.

Study targets geothermal resources


The local Idemitsu Kosan Co., Ltd and Inpex Corporation are carrying out a joint study to assess the potential development of geothermal energy in two areas. The companies will jointly assess the resources in the Amemasudake area of Akaigawa and Sapporo in Hokkaido prefecture and in the Oyasu area of Yuzawa in Akita prefecture. The companies noted that both areas have been previously researched by the government-linked New Energy and Industrial Technology Development Organization (Nedo) under its geothermal energy development promotion program. Nedo confirmed the feasibility of geothermal power stations in these areas since the underground temperature is more than 200 degree Celsius, they added. The joint study will include geological, gravity and electro-magnetic surveys. If the result of the joint study by Idemitsu and Inpex proves that these areas have high potential for geothermal energy development, a further study will be carried out, they said. Idemitsu said that it had begun its activities in the geothermal energy development business in the late 1970s, when it noted that geothermal energy was being promoted as an alternative energy resource during the then oil crisis. Through a wholly-owned subsidiary, Idemitsu Oita Geothermal Co., Ltd, the company currently supplies geothermal steam to the Kyushu Electric Power Companys Takigami power station at Kokonoe. Inpex is currently carrying out more than 70 oil and gas exploration and development projects in 26 countries. The company will contribute the knowledge and experience garnered from these hydrocarbon exploration and development activities, such as subsurface evaluation and drilling technology, to the study.

Chiyoda eyes CSP prospects


The local engineering and construction company Chiyoda Corporation has signed a cooperation agreement with Italys Archimede Solar Energy (ASE). Under the agreement the companies will jointly explore business opportunities for concentrated solar power (CSP) projects in the Middle East and North African region. The Yokohama-headquartered Chiyoda noted that ASE is controlled by Italys Angelantoni Industrie Group SpA, with Germanys Siemens having a 45% interest. It added that ASE is the only worldwide producer of commercially available solar receiver tubes, the key components of solar thermodynamic plants run with parabolic trough

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technology, which use sodium and potassium nitrate (molten salts) as their heat transfer fluid. Chiyoda observed that ASE also has experience in promoting grid scale concentrated solar power solutions fueled by alternative and renewable sources. Chiyoda noted that for its part it is an engineering, procurement and construction contractor with global experience in the installation of power, LNG and other industrial facilities. But it said that it not only desires to enter into the CSP plant market on the basis of those experiences, but also intends to become an [independent power producer] developer utilizing ASEs innovative molten salt CSP technology.

A step forward occurred on July 4 when Kyushu Electric secured approval from a local mayor to restart the Genkai reactors in Saga prefecture. It was the first official approval Kyushu Electric has received from a local authority to restart Genkai after completing scheduled maintenance. However, the Fukuoka-based power utility still has to secure approval from the Saga governor, Yasushi Furukawa, to restart the reactors. Furukawa had at press time declined to indicate whether he would support the Genkai restarts.

Kyushu electric increases fuel needs


The Kyushu Electric Power Company has secured part of the additional oil and liquefied natural gas it needs during the July to September peak electricity demand period to replace the output from temporarily closed nuclear plants. But above-average temperatures and the continued closure of the reactors could further increase its requirements. Kyushu Electric said on June 28 that it had secured an additional 250,000 kiloliters (1.57 million barrels) of oil equivalent. This is on top of the 500,000 kl of crude oil, fuel oil and LNG it secured on June 9 (see PiA 581/19). The Fukuoka-based power utility had earlier estimated that it would need an additional 1 million kl during the third quarter of the calendar year, which would have left 250,000 kl to secure. But it now says that it might need an additional 1.45 million kl of oil and LNG in total during the summer period. Of the additional 450,000 kl that Kyushu Electric now says it may need, 250,000 kl would be to replace the output of three reactors with 2,629 megawatts of combined capacity. The remaining 200,000 kl is based on the current forecast for hotter-than-usual weather, with attendant higher air conditioning loads. The three reactors represent 50% of Kyushu Electrics 5,258 MW of total nuclear capacity at the Genkai and Sendai complexes. The 559-MW No.2 and 1,180-MW No.3 reactors at Genkai were supposed to have returned to service by May, but await local approval for the restarts, while the 890-MW Sendai No.1 reactor began a scheduled two-month maintenance program on May 10, and could also face tardy local approval for the resumption of power generation. Prior to the March 11 disaster, Kyushu Electric had planned to consume 360,000 kl of crude and fuel oil and up to 2.5 million metric tons/year of LNG in the fiscal year ending March 2012. The utilitys generating portfolio includes, as well as the 5,258 MW of reactor capacity, 5,360 MW of oil-fired, 4,490 MW of gas-fired and 4,180 MW of coal-fired power plant.

Kansai electric revises summer estimates


The countrys second-largest integrated power utility, the Kansai Electric Power Company, is projecting that it will have 31,660 megawatts of available capacity in July against estimated maximum demand of 31,380 MW. The 0.9% reserve margin compares with the 1.2% deficit earlier estimated for the month. Kansai Electric revised its earlier capacity estimate upwards because it now plans to restart the 900-MW Maizuru No.1 coal-fired generation unit - shut since May 30 due to technical problems - in early July. The company has also agreed to buy 350 MW of power from the Chugoku Electric Power Company during July. But Kansai Electric still estimates that it faces a power supply capacity deficit in August and September. July to September is the peak period for air conditioning use and thus for summer electricity demand in Japan.

AuStRALASIA
Australia

Mumbida Wind awards ePC contract


A consortium comprising the local Leighton Contractors and the US-based equipment supplier GE has been awarded the engineering, procurement and construction (EPC) contract for the Mumbida wind farm project in the state of Western Australia. The contract was awarded by Mumbida Wind Farm Pty Ltd, which is an equal joint venture between the local generator Verve Energy and Macquarie Capital. The 55-megawatt wind farm about 40 kilometers (25 miles) to the southeast of Geraldton will sell its entire output into the South West Interconnected System, the states main power grid. The project is scheduled to be completed by November 2012.

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The consortium valued the EPC contract at A$130 million ($138 million), equivalent to $2,509/ kW. The contract scope includes the installation of the 22 GE2.5-100 wind turbines and the 85-meter towers, the electrical and civil balance of plant, and a 22/132-kilovolt substation. A full maintenance service agreement will be provided by GE for a 10-year period, the consortium added. Meanwhile the state government-owned Verve Energy has said that, in a typical year, electricity production from the wind farm will be equivalent to the electricity consumption of 35,000 homes and will displace 200,000 metric tons of greenhouse gas emissions. Leighton Contractors noted that it has been involved in constructing a number of Australian wind farms. These include the Macarthur and Waubra projects in Victoria, and the Lake Bonney and Canunda projects in South Australia

Aurora Algae awards biomass plant contract


The US-based Aurora Algae has awarded the local MWH and John Holland the initial engineering contract for the design and construction of what it says will be the largest commercial scale photosynthetic algae facility in the world. The facility will be built at Maitland in the state of Western Australia. Aurora Algae noted that it has secured more than 1,500 acres of land near its recently-opened demonstration facility in Karratha. It added that the new facility will manufacture thousands of tons of algae-based biomass per year for the production of sustainable products in the nutraceutical, pharmaceutical, aquaculture and renewable energy markets. Aurora Algae said that it had received major project facilitation status from Anthony Albanese, the Minister of Infrastructure and Transport in the federal government. Albanese commented that, with the right support from government, Australia can become a world leader in renewable technologies such as Aurora Algaes, with the real potential of creating tens of thousands of highly skilled green collar jobs and new export opportunities.

The decision was made by Environment Canterbury and the Mackenzie District Council, based on the fact that the proposal makes the most of an existing asset by utilizing the head between Lake Pukaki and the Pukaki-Ohau canal, Meridian Energy said. It added that various mitigation measures had been agreed through the consultation process. We are yet to make a decision about when we will build this project, but the option will be executed when market conditions are favorable, Meridian Energy said. Meanwhile in a separate development Meridian Energy welcomed the decision of the Hurunui District Council and Environment Canterbury to allow its resource consent application for the proposed Hurunui wind farm project to be determined by the Environment Court. The option is called Direct Referral and means that, instead of a council hearing in the first instance, the consent application goes straight to the Environment Court for consideration, Meridian Energy explained. It added that direct referral for Hurunui represented a streamlined, one-step process that would simplify the process and importantly avoid unnecessary cost for the councils, their ratepayers and the participants. The 75.9-MW Hurunui wind farm project is proposed for development between Omihi and the Greta Valley in North Canterbury. Announced in May 2010, it will comprise 33 turbines, Meridian Energy has said.

MRP confirms Genesis agreement


The state-owned generator and retailer Mighty River Power has confirmed a multi-year agreement with Genesis Energy to add further electricity portfolio flexibility and assist with managing the risk of low rainfall in the Waikato catchment. Mighty River Powers general manager for operations, Fraser Whineray, said the contract would add supplyside portfolio flexibility. In conjunction with Mighty River Powers gas-fired Southdown cogeneration plant, the company now has more than 1,000 GWh per year of discretionary owned and contracted generation, Whineray said, adding that the agreement had been negotiated following Genesis Energys request for proposals in November 2010. This is part of effectively managing risk and providing further flexibility across our overall electricity portfolio, that includes hydro, geothermal and thermal production and contracted purchases, in combination with multiple sales channels - residential, commercial, industrial, and the wholesale market, Whineray said. He added that Mighty River Power was supportive of product development and liquidity in the derivatives market as evidenced by its active hedge book, work with joint venture entities to bring additional liquidity to contract markets, and this most recent transaction with Genesis.

New Zealand

Meridian advances Pukaki and Hurunui projects


The state-owned generator and retailer Meridian Energy has welcomed the decision to issue resource consents for its Pukaki hydroelectric power project. The 35-megawatt project will involve a powerhouse located close to an existing canal inlet structure, Meridian Energy said.

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AsiA BeAt

ASIA BeAt
Turkey: A wind farm project owned by Gama Enerji AS, a joint venture between the local Gama Holding AS and the US-based GE Energy Financial Services, has entered operation. The 22.5-megawatt Sares wind farm near Canakkale in the Ezine region comprises nine GE 2.5MW wind turbines. The joint venture said that it is also developing the 10-MW Karadag wind farm project, where construction is projected to start in the third quarter of 2011 for scheduled completion in the second quarter of 2012. Turkey: The US-based power equipment and services supplier GE has said that the local power plant developer Acarsoy Enerji will use its LM6000-PC aeroderivative gas turbine technology in a 60-megawatt natural gasfired, combined-cycle power plant at Denizli in southwest Turkey. GE said that the mid-merit plant is scheduled to be operational in the first half of 2012. GE added that the unit will be the fiftieth GE gas turbine to enter service in a country where more than 300 of the companys gas, hydroelectric, steam and wind turbine units with 8,200 MW of total capacity are installed or on order, representing more than 30% of the countrys total generation capacity. Bangladesh: The US-based energy company ConocoPhillips has signed a production sharing contract (PSC) with the government and state energy company Petrobangla covering two hydrocarbon blocks in the deepwater area of the Bay of Bengal. ConocoPhillips said that it holds a 100% working interest in the PSC, which the company noted represents its first investment in Bangladesh. Blocks DS-08-10 and DS-0811 cover a total area of 5,158 square kilometers. China: The Ministry of Land and Resources launched its first public tender for shale gas resources on June 27, with six local companies being invited to bid for the licenses for four southwestern blocks, according to the official Xinhua news agency. The blocks include the Nanchuan and Xiushan blocks in Chongqing municipality and the Suiyang and Fenggang blocks in Guizhou province, the report said. PetroChina, the China Petroleum & Chemical Corporation, the CNOOC (China) Company, the Yanchang Oil Field Administration Bureau, the China United Coalbed Methane Company, and the Henan Provincial Coal Seam Gas Development and Utilization Company were prequalified to participate in the tender, the report said. Officials had earlier said that domestic state energy companies will take the lead role in exploration and development of shale gas, with foreign enterprises wanting to participate having to form joint ventures with accredited Chinese companies. Beijing also plans to offer four blocks in the east of the country in the first phase of its shale gas development program. Based on the current provisional estimates, China holds about 26 trillion cubic meters of shale gas reserves. China: The country imported 967,922 metric tons of liquefied natural gas in May, up 49.3% compared with May 2010 according to data from the General Administration of Customs. Australia shipped 324,611 mt, up 29.18% on year to China, while second the countrys second largest supplier of LNG in May, Malaysia, exported 179,244 mt, up 57.1% on year. Taiwan: The US-based Fuel Tech, Inc has been awarded a $2.6-million contract to supply equipment and engineering services for a project involving the installation of an ASCR system incorporating selective catalytic reduction and other technologies. The suite of nitrogen oxide reduction equipment will be installed on an industrial boiler burning coal gas and other gases, with delivery of the equipment scheduled for late 2011 and the first half of 2012, the company said. Fuel Tech noted that its ASCR system is a layered technology approach that can offer advantages over full-scale standalone SCR systems, including lower capital costs, enhanced fuel flexibility and reduced spatial requirements. Japan: LNG imports in May totaled 6.04 million metric tons, much the same as in April. The imports were 26% higher on year in the wake of the March 11 earthquake and tsunami, according to customs data released by the Ministry of Finance. The largest supplier was Australia, which provided 71% more LNG on year at 1.17 million mt. Company: Japans Nitto Denko and its wholly-owned US-based subsidiary Hydranautics have agreed with Norways Statkraft on the development and supply of membranes for osmotic power, which is the energy available by capturing the difference in the salt concentration between salt and fresh water. Nitto Denko noted that it is the global leader in the manufacture of membranes, which are key to the generation of osmotic power, while Statkraft opened the worlds first osmotic power prototype facility in Norway in 2009. Under the agreement, Nitto Denko and Hydranautics will develop membranes specifically for use in large-scale osmotic power plants. The development of more efficient membranes will contribute to making the technology competitive with other new, renewable energy sources and will bring osmotic power further towards future commercialization, Nitto Denko said. Statkraft says that osmotic power is clean, renewable energy, with a global potential of 1,600 to 1,700 TWh per year. Financing: The US government-linked Overseas Private Investment Corporation (OPIC) has committed $112 million to two funds focused on Asian renewable energy projects. OPIC will contribute $62 million to the Renewable Energy Asia Fund, managed by Berkeley Energy, which has a target capitalization of $187

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AsiA BeAt / oPPortunities

million and which focuses primarily on renewable energy projects and developers in India and the Philippines. The fund focuses on mature renewable technologies, such as wind and small hydro, to help close the sizeable electricity demand-supply gap in its target markets [and] currently has $125 million under management, OPIC said. Meanwhile it will contribute $50 million to the Mekong Renewable Resources Fund, which has a target capitalization of $150 million with the OPIC contribution being up to $50 million. The fund will invest in renewable resource opportunities in the Lower Mekong countries of Vietnam, Cambodia and Laos, specifically in the environmental services and infrastructure; renewable energy; and energy efficiency sectors, OPIC said. South Korea: The Smart Grid and Electricity Market Division of the Ministry of Knowledge Economy (MKE) said in late June that Korea has been appointed as the Secretariat of the International Smart Grid Action Network (Isgan) for the next three years. Isgan was launched in July 2010 as a mechanism for multilateral collaboration involving 20 member countries, the MKE said. Kim Junggwan, the vice minister for Trade and Energy, said that Korea will take a central role in facilitating a dynamic exchange of information to ensure the achievement of the shared goal: to advance the development and deployment of smarter electric grids around the world. China: The country recorded its highest share to date of coal exports shipped by Australias Port Waratah Coal Services terminals at Newcastle. The port exported 17.6%, or 1.48 million metric tons, of its 8.45 million mt of total coal exports in June to China, according to export data posted on the PWCS website. The statistics bore out market

reports of aggressive China-related buying at the Newcastle trading hub, particularly for thermal coal with an ash content of between 17% and 25% on a net as-received basis. Chinas share of exports at PWCS Newcastle coal terminals had previously peaked at 16%, or about 1.1 million mt, in November 2009 when weather-related rail transport problems reduced domestic coal supplies to Chinese power stations. Chinas upswing in market share at PWCS in June 2011 after China-bound exports hit a low of 1.2% in February 2011 - was connected to rising demand for coalfired electricity at a time of higher prices for domestic coal. But Japan maintained its place as the premier destination for coal exports from the Newcastle coal terminals operator in June - 52.6% of PWCS exports, equivalent to 4.4 million mt, was destined for Japan. Fuel: Japans Mitsubishi Corporation has agreed to transfer some of its shares in a shale gas project in the Cordova Embayment of Canada to South Koreas Korea Gas Corporation (Kogas). Following the transfer, and the wider restructuring of the shareholding arrangements, the ultimate ownership of the project in British Columbia will be Canadas Penn West Exploration (50%), Mitsubishi (30%), Kogas (5%), Chubu Electric Power (3.75%), Tokyo Gas (3.75%), Osaka Gas (3.75%) and the Japan Oil, Gas and Metals National Corporation (3.75%). Mitsubishi said that large-volume production of shale gas is now cost feasible due to recent advances in drilling and completion technology, and added that Mitsubishi plans to discuss studying the possibility of exporting the shale gas to Japan as LNG among Japanese partners. It added that the participation of Kogas, the worlds biggest LNG importer, will accelerate the discussion by leveraging each nations strength so that energy resources can be stably secured within eastern Asia.

oPPoRtuNItIeS
India
TRN Energy
TRN Energy seeks engineering, procurement and construction contract bids for the balance of plant package for a 600-MW coal-fired project comprising two 300-MW units in the Raigarh district of Chhattisgarh state. Deadline: July 14, 2011 Contact: e-Gateway India Pvt. Ltd, 8, Community Center, Mezzanine Floor, East of Kailash, New Delhi110065. Tel: 91-11-26473020/21; fax: 91-1142654618/26473021 email: egateway@gmail.com at Lakhapar in the Mundra area of Kutch district in Gujarat state. Deadline: July 15, 2011 Contact: Saurashtra Power Private Limited, 202, Sarthik-11, Opp. Rajpat Club, S.G. Highway , Ahmedabad-380054, Gujarat. Tel: 91-7926872647/40227500; mobile: 91-9879603963; email: hariharan@saurashtracorp.com

KSK Dibbin Hydro


KSK Dibbin Hydro Power is tendering the electro-mechanical works for the two 60-megawatt units comprising the Dibbin hydroelectric project in the West Kameng district of Arunachal Pradesh state. Deadline: July 15, 2011 Contact: Deputy General Manager (Civil), KSK Dibbin Hydro Power Pvt Ltd, B-1, Ground Floor, Sector-4, Noida-201301, Uttar Pradesh. Tel: 91-120-4618000

Saurashtra Power
Saurashtra Power invites sealed bids for the engineering, procurement and construction contract for a 60-MW plant

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Miyar Hydro
Miyar Hydro Electric Power, a Moser Baer group company, invites expressions of interest for the five civil and hydromechanical works packages for its 120-MW hydroelectric project comprising three units in the Lahul & Spiti district of Himachal Pradesh state. Deadline: July 18, 2011 Contact: Miyar Hydro Electric Power Company Limited, 235, Okhla Industrial Estate, Phase-111, New Delhi-110020. Tel: 011-47624100

Industrial Energy
Industrial Energy Limited invites bids for the civil works package involving the supply of materials, construction, fabrication and erection of three 67.5-megawatt gas-fired units and three 150-MW coal and gas-fired units. Deadline: August 1, 2011 Contact: Chief Manager-Contracts & Procurement (ERP), Tata Power Company Limited, Eastern Region Projects Office, Plot No.C-43, Sector-62, Noida-201307, Uttar Pradesh. Tel: 91-120-6663000; fax: 91-120-6663029; email: anil. agarwal@tatapower.com

HVPN
Haryana Vidyut Prasaran Nigam, the Haryana state transmission utility, seeks offers to design, supply, install, test and commission 66 and 220-kilovolt substations, and 66 and 220-kV bays under the World Bank-funded Haryana Power System Improvement Project. Deadline: July 19, 2011 Contact: Chief Engineer (MM), Haryana Vidyut Prasaran Nigam Ltd, Shakti Bhawan, Sector-6, Panchkula-134100, Haryana. Tel: 91-172-2583724/2583744; fax: 91-1722585746

MSPGC
The Maharashtra State Power Generation Company seeks offers for the electrical system package for the renovation and modernization of the 210-MW Koradi Thermal Power Station, which is being funded through a loan from the World Bank. Deadline: August 2, 2011 Contact: Chief Engineer (Operation and Management), Maharashtra State Power Generation Company Ltd, Koradi Thermal Power Station, Koradi, Nagpur-441111, Maharashtra. Tel: 91-7109-62141/262146; fax: 91-7109262127; email: cegenkoradi@mahagenco.in

Crisil
Credit Risk and Infrastructure Solutions Limited on behalf of Chattel Constructions Private Limited seeks an engineering, procurement and construction contractor for the design, engineering, manufacture, supply, erection, testing and commissioning of a 25-MW solar photovoltaic project in Gujarat state. Deadline: July 25, 2011 Contact: Vikas Kumar, Risk and Infrastructure Solutions Ltd, The Mira, G-1, 1st Floor, Plot No.1&2, Ishwar Nagar, New Delhi-110065. Tel: 91-11-42505107; fax: 91-11-26842213; email: vikumar@crisil.com

NTPC
NTPC invites bids for the main plant package for a 5-megawatt solar thermal power project at NTPCs Anta site in the Baran district of Rajasthan state. Deadline: August 3, 2011 Contact: Additional General Manager (CS-111)/Manager (CS-111), NTPC Ltd, 6th Floor, Engineering Office Complex, A-8A, Sector-24, Noida, Gautam Budh Nagar District, Uttar Pradesh. Tel: 91-120-2410528/3316642

Crisil
Credit Risk and Infrastructure Solutions Limited on behalf of Ujjawala Power Private Limited seeks an engineering, procurement and construction contractor for the design, engineering, manufacture, supply, erection, testing and commissioning of a 25-MW solar photovoltaic project in Gujarat state. Deadline: July 25, 2011 Contact: Vikas Kumar, Risk and Infrastructure Solutions Ltd, The Mira, G-1, 1st Floor, Plot No.1&2, Ishwar Nagar, New Delhi-110065. Tel: 91-11-42505107; fax: 91-11-26842213; email: vikumar@crisil.com

PGCIL
Power Grid Corporation of India invites bids for the 765-kilovolt transformer package associated with the transmission system to evacuate power from independent power producer projects in Madhya Pradesh and Chhattisgarh states. Deadline: August 11, 2011 Contact: Chief Manager/Senior Engineer (CS-G1), Power Grid Corporation of India Ltd, Saudamini, Plot No.2, Sector-29, Gurgaon-122001, Haryana. Tel: 91-124-2571700-19-extn: 3311/2371; fax: 91-124-2571831

UJVNL
Uttarakhand Jal Vidyut Nigam Ltd seeks offers for the renovation, modernization and upgrading of the two 10-MW units at the Kulhal hydroelectric plant in the Dehradun district of Uttarakhand state. The contract involves the refurbishment and replacement of key components of the generating units. Deadline: July 26, 2011 Contact: Deputy General Manager, Uttarkhand Jal Vidyut Nigam Limited, M&U, Yamuna Valley, Dhalipur, Dehradun, Uttarakhand. Tel: 91-135-2763508/2763808

JAS Infrastructure & Power


JAS Infrastructure & Power invites bids for the design, engineering, supply, construction, erection and commissioning of railway sidings for coal transportation for a project comprising four 660-MW units at Siriya in the Banka district of Bihar state. Deadline: August 11, 2011 Contact: Procurement Head, JAS Infrastructure and Power Limited, 8th and 9th Floor, Mahabir Tower, Main Road, Ranchi-834001. Tel: 91-651 23331116; mobile: 91-9386617933; fax: 91-651-2331109

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Mizoram PED
The Power & Electricity Department of Mizoram state seeks request for qualification offers for the development of three 70-MW hydroelectric units on the Tuival River at Ngopa in the Champhal district of Mizoram state on a public-private partnership basis. The central governments viability gap funding program will provide support under the funding program, which is for projects which are otherwise commercially unviable. Deadline: August 16, 2011 Contact: Engineer-in-chief, Power & Electricity Department, Government of Mizoram, Aizwal-796001, Mizoram. Tel: 91-389 2322848/2320826; fax: 91-389-2320862.

Contact: Vice President - Power Projects, Astarc Power Private Limited, Astarc House, 3rd Floor, 76/79 Makwane Lane, Taklpada, Marol, Andheri Kurla Road, Andheri (East), Mumbai-400059, Maharashtra. Tel: 91-22-66793500; fax: 91-22-66793650; email: mani.mathavan@astearc.com Thailand

Electricity Generating Authority of Thailand


Bid No.HSA-L3-01: Calling for the transmission system needed to import power to Thailand from the Hongsa lignitefired project in Laos. Sealed bids are invited for the supply and construction of the 159-kilometer, 500-kilovolt transmission line from the Mae Moh-3 substation to Tha Kao. The project will be financed from Egats own funds, with an escalation factor for price adjustment being applied to the bid, and with Egat due to announce the medium cost about a month before the bid opening date. Deadline: Bids must be submitted at Room No.1202/1, 12th Floor Building Tor 101, from 9.30 to 10.00 a.m. on July 27, 2011 and will be opened publicly at 10.00. Bidding documents in the form of a CD-ROM will be available for examination of bidder qualifications and purchase to July 13 at $640 or Baht 20,000 per copy, non-refundable from the Development Area Procurement Department - Transmission System, Room No.506, 5th Floor, Building TOR 101, Electricity Generating Authority of Thailand, Bang Kruai, Nonthaburi-11130. Tel 662-4361422; Fax: 662-4336317, 4335523, 4344064

NLC
The Neyveli Lignite Corporation invites bids for the steam generators and auxiliaries package for the 1,000-MW Neyveli New Thermal Power Station comprising two 500-MW units. Deadline: August 30, 2011 Contact: Neyveli Lignite Corporation Limited, Neyveli House, No.135, Penyar EVR High Road , Chennai-600010, Tamil Nadu, Chennai. Website: www.nlcindia.com NLC The Neyveli Lignite Corporation invites bids for the steam turbine generator package for the 1,000-MW Neyveli New Thermal Power Station comprising two 500-MW units. Deadline: September 2, 2011 Contact: Neyveli Lignite Corporation Limited, Neyveli House, No.135, Penyar EVR High Road , Chennai-600010, Tamil Nadu, Chennai. Website: www.nlcindia.com

Electricity Generating Authority of Thailand


Bid No: EGAT 1/2554-CBHP Sealed bids are invited for the design, manufacture, fabrication, shop tests, supply, delivery, insurance, construction, installation, testing, commissioning and guarantee of the equipment, powerhouse and associated civil works for the 1.25-MW Chulabhorn River Outlet Hydropower Project. The project will be financed from Egats own funds. Deadline: Bid will be opened on September 1, 2011 Bidding documents will be available to August 22, 2011 at $340 or Baht 10,000 per set of two copies, and $170 or Baht 5,000 per additional copy, non-refundable, from the Development Area Procurement Department, Power Plant Development Area Administration Division, Room No.605, TOR 101, Electricity Generating Authority of Thailand, Bang Kruai, Nonthaburi-11130. Tel: 662-4339774; fax: 6624336317/4335523/4344064/4360591 Payment can be made by certified check or money order payable to EGAT or telegraphic transfer to EGATs current account No.109-601958-2 (swift code: KRTHTHBK), Krung Thai Bank Public Company Limited, Bang Kruai Branch, Nonthaburi. All bank charges and fees incurred in the payment of bidding documents are the bidders responsibility. Documents will be airmailed or airfreighted to the buyer at EGATs expense on receipt of the relevant remittance. If the buyer requires the documents to be sent by Express Mail Service, the charge will be at buyers expense.

RRVPNL
Rajasthan Rajya Vidyut Prasaran Nigam Ltd, the state-owned power transmission enterprise in Rajasthan state, seeks request for proposal offers for the development of the 130-kilometer, 400-kilovolt Babal (Jhunjhunu)-Jaipur (North) transmission line along with two 315-MVA, 400/220-kV substations at Jaipur (North) on a build, own, operate and maintain basis. Deadline: September 14, 2011 Contact: Superintending Engineer, Rajasthan Rajya Vidyut Prasaran Nigam Limited, Room No.302, Vidyut Bhawan, Janpath, Jaipur-302005, Rajasthan. Tel: 91-1412744290/941406164; fax: 91-141-2740275; email: se_npp@rvpn.co.in

Thailand
Astarc Power
Astarc Power invites bids for the engineering, procurement and construction contract for the boiler, turbine and generator package for the 1,320-MW supercritical thermal plant comprising two 660-MW sets at Umred in the Nagpur district of Maharashtra state. Deadline: September 16, 2011

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Power in AsiA / issue 582 / July 7, 2011

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