Asia Power Week, June 20 2016

Asia’s governments today face an increasingly difficult set of challenges to grow their nations’ economies, mitigate climate change and improve energy security all at the same time, said the World Bank.

To succeed, they will need political resolve, financial resources as well as help from infrastructure and engineering firms to make large-scale deployment of energy efficiency and low-carbon technologies, the bank said in a special report, “East Asia’s Sustainable Energy Future”. Released in May, the special edition of the report covered six major developing Asian countries, China, Indonesia, Malaysia, the Philippines, Thailand and Vietnam.

The bank estimates that the six would need to invest a total of US$80 billion per year over the next two decades, with US$25 billion of that for concessional financing to cover the incremental costs and risks associated with the implementation of energy efficiency and renewable energy projects. The measures taken will help stabilise the countries’ carbon emissions by 2025 without compromising economic growth.

The report said the six governments must adopt climate-smart policies, become more energy efficient and increase their use of low-carbon technology while a global climate deal is being negotiated. The governments also face the challenge of cleaning up their countries’ increasingly congested cities.

The World Bank’s latest assessment of Asia’s energy and environmental requirements validates the strategies of at least two companies that have been providing such solutions and operating in the region since the early 1900s.

Siemens AG of Germany and Black & Veatch of the United States will be among more than 250 companies and organisations exhibiting and speaking at Pennwell’s Asia Power Week gathering in Seoul, South Korea on September 20 to 22. The companies will share their expertise with more than 8,300 delegates who have signed up to attend Asia’s leading power event that has been held every year for the last 24 years.

Asia Power Week will be held at a timely juncture as experts will meet to discuss Asia’s multitude of energy and environmental challenges related to its diverse set of economies.

At last December’s climate conference in Paris, known as COP21, world leaders acknowledged that they face a tough struggle to slow down global warming. In April 2016, representatives of 175 countries met in New York to affirm the Paris agreement to keep global temperature from rising between 1.5 and two degree Celsius above pre-industrial levels around 1750.


Siemens offers solutions for clean energy

Asia faces a qualitative challenge to develop the power mix in a sustainable and environmentally friendly way that Siemens is able to provide, said Willi Meixner, CEO of the company’s Power and Gas Division, in an interview with Asia Power Week.

Mr Meixner, who will be a keynote speaker at the Asia Power Week opening on September 20, said that apart from renewable energy sources such as wind, Asia should also consider clean coal in its energy mix.

Earlier this year, Siemens unveiled to a group of international journalists its latest highly efficient steam turbines that will help Asia meet its energy and environmental challenges as outlined in the World Bank report.

At its facility in the German city of Dusseldorf, Siemens celebrated the achievement of a record-breaking performance of its technology used in combined heat and gas power plants (CHP).

“Here we achieved an electrical efficiency of around 61.5% and a record power-generating capacity of 603.8 megawatts during a test run. This plant can also supply around 300 megawatts of heat for district heating, pushing the overall efficiency rate of this power plant up to 85%,” said Mr Mexiner.

The Dusseldorf natural-gas-fired combined cycle power plant offers a further advantage for Asia, which is battling to clean up its environment. The plant’s annual carbon emissions are about 2.5 million tons less than the average coal-fired power plant in the European Union. This equals the amount of carbon dioxide emitted by 1.25 million passenger cars, each travelling 15,000 kilometres a year.

“Similar technologies are installed in South Korea as well, and we are confident that there are more opportunities in Asia,” said Meixner.

“If our Asian partners and customers are thinking in terms of a sustainable, secure, flexible, cost-efficient and environmentally friendly power supply, I am sure they have Siemens in mind!”

According to the World Bank, energy efficiency measures alone will contribute to more than half of the emission reductions envisaged under different scenarios.



Black & Veatch, the operator

With more than 90 years operating in Asia, Black & Veatch began serving the region’s power sector from the 1960s, both as a consultant and as an engineering, procurement, and construction (EPC) contractor.

Asia will need the company’s expertise and experience to implement solutions to meet the region’s energy and environmental goals.

According to the World Bank, the combined urban populations of China, Indonesia, Malaysia, the Philippines, Thailand and Vietnam will rise by around 50% over the next two decades. Having tripled since the mid-1980s, their energy consumption is expected to double over the next two decades.

Led by China, the countries are among the world’s top greenhouse gas (GHG) emitters and will rise further as emissions per capita and historical emissions are still low compared to the developed world.

Black & Veatch has large operations in Beijing, Bangkok, Jakarta and Pune in India, with project sites and sales offices throughout the region, it said in an interview with Asia Power Week. The answers were provided in a joint statement issued by Jim Schnieders, the company’s Managing Director for Power EPC, and Mark Duckworth, its Asia Regional Director for Power Generation Services.

“Our work focuses on delivering well-built, efficient power facilities that meet or exceed environmental standards or requirements.

“We also have decades of experience delivering hydropower and renewable projects; we are seeing more opportunities to develop such facilities throughout the region, as well as improve the environmental performance of existing facilities.”

Black & Veatch is actively involved in implementing power projects in China and India as well as Southeast Asia, including Malaysia, Myanmar, the Philippines and Vietnam. With some of the fastest growing economies in the world, these countries have a voracious appetite for electricity and clean energy.

Black & Veatch, a privately-owned global firm, has a long relationship with China, and has been working with Chinese companies in a variety of ways, both in the country and abroad.

For the past decade, it has focused on improving the value and outcomes of Chinese-led EPC projects, as well as the quality of Chinese equipment sourcing, said Mr Schnieders and Mr Duckworth.

“For example, in Indonesia, we helped secure financing of a Chinese-led EPC project at Banten, which remains on track. At the award-winning Tanjung Jati B Power Plant Units 3 and 4, we sourced equipment as part of our role to deliver the EPC scope for the balance-of-plant equipment.

“We have built up our capabilities and experience over many years and continue to see the important role that China plays in international power development, alongside other major Asian players such as South Korea and Japan.”

In many parts of Southeast Asia, governments are focused on building and maintaining infrastructure to ensure a reliable supply of electricity.

“The baseload facilities required are typically based on fossil fuel, and this reality prioritises coal and gas power facility development. Southeast Asia is an active power development market and fiercely competitive: developers are looking for experienced consultants or EPC contractors who can deliver solutions competitively and on schedule,” said Black & Veatch.