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ADB-Supported Kyrgyz Republic’s Largest Hydropower Plant Achieves Key Milestone

MD Staff

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photo: ADB

JSC Electric Power Plants (EPP), the major state-owned power generation company in the Kyrgyz Republic, today announced the award of a turn-key contract for the Asian Development Bank-supported (ADB) modernization of the Toktogul hydropower plant (HPP) to a joint venture of GE Hydro (France) and GE Renewables (Switzerland) for $104 million.

The modernization project includes new state-of-the-art units which will improve safety, efficiency, reliability, and availability of the Toktogul HPP, located on the Naryn River in the Jalal-Abad Province and considered the country’s largest and most important hydropower plant, increasing its overall capacity to 1,440 megawatts. The additional capacity will be sufficient to supply about 200,000 households for an entire year.

ADB and the Eurasian Development Bank (EDB) financed the replacement of four units of the Toktogul HPP, which has been generating about 6,000 gigawatt hours per year for 43 years. Because of aging equipment, however, the plant has experienced increasing number of failures in recent years.

“ADB has been supporting the energy sector in the Kyrgyz Republic since 1996 as the rehabilitation, replacement, and augmentation of power sector assets are critical for energy security in the country”, said Candice McDeigan, ADB’s Country Director for the Kyrgyz Republic.

“The phased rehabilitation of the Toktogul plant has been the key priority for ADB’s energy sector support in the Kyrgyz Republic and its timely rehabilitation is key to the country’s plan to export summer surplus to Afghanistan and Pakistan through the CASA-1000 power transmission line”, said Ashok Bhargava, Director for the Energy Division at ADB’s Central and West Asia Department.

EPP commenced phased rehabilitation of the Toktogul HPP project in 2012, starting with the refurbishment of the secondary electrical and mechanical equipment, the rehabilitation of two Toktogul units, and later completed by the remaining two Toktogul units, with an overall target completion by 2024-2026. The latest milestone was a result of the extensive competition among all major players and EPP’s innovative approach to procurement and design, which brought in competitive pricing and accelerated completion of the project by 3 years.

“In 2016, EPP decided to fast track the procurement of the four turbines and generators of the Toktogul HPP through single procurement for economies of scale, resulting to completion three years early. With ADB support, the EPP conducted multiple roadshows to improve the

procurement design based on industry feedback and international best practice to increase completion for the project,” said EPP General Director Uzak Kydyrbaev.

GE Capital, the ultimate parent of the GE consortium, has provided a guarantee to support its operation in the Kyrgyz Republic. GE has committed to commission the first unit by November 2020, and one additional unit each year by November 2023

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Energy

Australia’s commitment to affordable, secure and clean energy

MD Staff

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Australia should rely on long-term policy and energy market responses to strengthen energy security, foster competition, and make the power sector more resilient, according to the International Energy Agency’s latest review of the country’s energy policies.

In line with global trends, Australia’s energy system is undergoing a profound transformation, putting its energy markets under pressure. Concerns about affordable and secure energy supplies have grown in recent years, following several power outages, a tightening gas market in the east coast and rising energy prices.

Besides assessing progress since the IEA review of 2012, the Australian government requested the IEA to focus on how Australia can use global best practices in transitioning to a lower-carbon energy system. This question points to safeguarding electricity supply when ageing coal capacity retires, increased variable renewable energy comes on line and natural gas markets are tight. In this context, the IEA also contributed to the Independent Review into the Future Security of the National Electricity Market (NEM) by Chief Scientist Dr Alan Finkel.

“The government’s efforts to ensure energy security and move ahead with market reforms have been impressive. Australia can develop its vast renewable resources and remain a cornerstone of global energy markets as a leading supplier of coal, uranium and liquefied natural gas (LNG), securing the energy for growing Asian markets.” said Dr Fatih Birol, the IEA’s Executive Director, who presented the report’s findings in Canberra. “A comprehensive national energy and climate strategy is needed for Australia to have a cleaner and more secure energy future. The National Energy Guarantee is a promising opportunity for Australia to integrate climate and energy policy.”

Along with the United States, Australia is leading the next wave of growth in liquefied natural gas (LNG). As a major exporter of coal, Australia is also a strong supporter of carbon capture, utilization and storage technologies. The report commends Australia’s efforts which can be critical globally to meeting long-term climate goals.

The IEA’s review points out that the sustainable development of new gas resources is critical for natural gas to play a growing role in the energy transition, satisfying a growing domestic gas demand in power generation and industry and to honor export contracts at the same time. The report calls on Australia to continue efforts to improve transparency of gas pricing, boost market integration and facilitate access to transportation capacity.

Welcoming the government’s energy security focus, including the creation of the Energy Security Board, the Energy Security Office, and Australia’s plan to return to compliance with the IEA’s emergency stock holding obligations, the IEA recommends regular and comprehensive energy security assessments to identify risks early on, and foster the resilience of the energy sector.

In terms of power system security, the report offers a series of recommendations on how to improve the market design of the National Energy Market (NEM), one of the most liberalised and flexible power markets in the world. To accommodate higher shares of variable renewables, the IEA recommends that the NEM prioritises measures to safeguard system stability, enhance grid infrastructure, including interconnections, and regularly upgrade technical standards. As consumer choice and prices in retail markets are liberalised across Australia, the government needs to focus on wholesale competition and demand-side flexibility, in recognition of the changing ways energy is produced and consumed, thus contributing to reducing peak demand.

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5 myths about solar panels, debunked

MD Staff

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Home solar panels can drastically cut or even eliminate electricity bills, reduce a home’s carbon footprint, increase resale value, and may even help a home sell faster.

The cost of rooftop solar systems has fallen dramatically in recent years, and most homeowners have the option of buying the system, leasing it on reasonable payment terms, or having a third-party pay for and install the system at no up-front cost at all for the homeowner. Plus, home solar systems are eligible for federal tax credits.

All of this explains why the number of homeowners installing solar has sky-rocketed across America. Nevertheless, many homeowners remain skeptical about taking control of their energy use and installing solar. Why? The various myths that still persist around solar power could be the reason.

“Solar technology has been around for a long time, but even though it’s entered the mainstream, many homeowners are still skeptical,” says renewable energy expert Roger Ballentine, president of Green Strategies, a leading Washington-based consulting firm. “That’s because a number of myths persist, pointing to the need for better consumer education about the benefits of home solar installations.”

Ballentine points to private and government studies providing real information that debunks the myths surrounding solar power. For example, research by the U.S. Department of Energy’s National Renewable Energy Laboratory (NREL) and the Lawrence Berkeley National Laboratory found solar panels help homes sell faster and for more money than those without solar.

If you’re considering installing a solar panel system on your home, here are five common myths — and why you shouldn’t believe them:

Myth 1: Solar panels only work if you live in a warm, sunny climate

While solar panels work best when they get a lot of sun, a lack of bright sun doesn’t mean they’re not working. Panels can still absorb ambient sunlight, even on cloudy days or in regions that get less bright sun. What’s more, today’s solar panels are more energy efficient than ever. Newer systems like the “LG NeOn R” maximize sunlight absorption and generate the maximum possible output — as much as 26 percent more than other comparably sized solar panels. This higher efficiency means that solar panels can work in virtually any climate and every season.

Myth 2: You need a lot of roof space for solar panels

Just like other amazing technologies (think microchips), solar panels are getting smaller, more powerful and more efficient. High-efficiency panels take up less space because fewer panels are required to produce the electricity needed to power your home. So even a smaller home could have enough roof space to fit the number of panels needed to generate the necessary power and save you money.

Myth 3: Installation is a long, drawn-out hassle

While adding solar panels to your home isn’t a DIY project, installation usually takes only a day or two. New models streamline the process further, eliminating the need to install a separate inverter. Most solar panels require a separate inverter to bring electricity into your house, but new panels from LG, for instance, incorporate the inverter, simplifying and accelerating the installation process.

Myth 4: If something goes wrong, you’re on your own

As with any major investment in your home, you should make sure you understand the manufacturer and installer warranties for your solar panels, including how long the coverage lasts and what types of problems are covered. One leading solar player, LG, even offers an industry-leading, 25-year product and power warranty. And unlike a furnace or an air conditioning system, a solar installation has no moving parts to wear out and typically requires little maintenance and repair.

Myth 5: Solar panels will look big, bulky and ugly on your roof

Solar panels are becoming smaller, sleeker and more aesthetically pleasing. Higher-efficiency models are also offering increased flexibility of configuration. Instead of having to cover an entire roof with panels in a specific arrangement in order to generate power, modern options allow you to arrange panels to meet your sense of aesthetics.

Adding solar power to a home offers homeowners many benefits, from reducing energy costs, to increasing the value of your home and helping the environment, Ballentine says. “Overall, it’s a decision most homeowners feel positively about once they’ve made it.” The NREL notes in its study: “Buyers of homes with (solar panel) systems are more satisfied than are comparison buyers. A significantly higher percentage … indicate they would buy the same houses again.”

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Energy

Why OPEC is Still Mighty

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After the dramatically decreases in the crude oil prices during the second half of 2014 which continuously dropped to below $30 per barrel in 2016 January, most of observers claimed that the time for the Organization of the Petroleum Exporting Countries (OPEC)’s influences was over. They relied on essential market factors such as stronger U.S. Dollar, shale oil revolution in the United States which was backed by large investments and technological breakthroughs, as well as weakened global economical growth and historical highs of OECD oil inventories.

Meanwhile, the OPEC members and OIC’s losses were estimated to more than $1 trillion during just 15 months until 2016 November, since the crude oil prices’ fall in 2014.

OPEC’s Mission and Power

While OPEC’s mission is “to coordinate and unify the petroleum policies of its Member Countries and ensure the stabilization of oil markets in order to secure an efficient, economic and regular supply of petroleum to consumers, a steady income to producers and a fair return on capital for those investing in the petroleum industry”, divergence of OPEC members seemed as last shot against it.

Beside, the OPEC members control more than 70% of world proved oil reserves (1,220 out of 1,706 billion barrels of oil, in 2016) as well as produce about 42% of world total oil production what they employed to satisfy their mission, historically. Actually, OPEC has stabilized the market by changes in its total production, mostly by pumping higher rate of product which enable it to increase its share in the market, but sometimes OPEC decreases the production rate to secure the oil price.

Regardless of defining OPEC as a cartel or an organization, they could respect their mission and total expedient, even where the conflict of their interest was a matter. Absolutely, some producers in the OPEC with the ability to change their production level fast and widely, especially Saudi Arabia, act in not too dissimilar a way from a commodity producers but which is driving the OPEC’s actions historically, is consensus not veto by most powerful members.

Indeed, the main oil customers tried consistently to threaten OPEC’s control on international oil market, especially after 1970s when embargo by some OPEC’s Arabic members triggered the oil prices. Although, their focuses on new energy sources such as Hydro, Nuclear, Wind or Solar, increased the share of them to 13% of the world energy sources in 2016 but OPEC taunted them by its last affects on the oil market.

OPEC’s Influences in Oil Market

For the first time, OPEC flexed it’s power against global oil price in 1973, when hiked it up to $12 per barrel, the highest price until then. The next major, was at March 1998 and March 1999, when OPEC cuts its production level twice during a year to end the slide in oil prices. All of OPEC members cuts their production in a high level of cohesiveness to verify their approach to a common object.

The third considerable OPEC’s effect was successfully implemented in the high oil price environment of 2004 to cutback the oil prices. OPEC’s production in 2004 was raised by 2.1 mb/day comparing with 2003 to cool overheated prices.

Finally, in 2016 November, when the continuous fall in the oil prices raised budget deficit of OPEC members, they decreased their products level in cooperation with some Non-OPEC producers to balance the oil market again. The agreement which was doubted to be respected by all the parties but successfully stabilized the market as addressed in the OPEC’s objectives.

While most of observers and analysts believed OPEC’s control on oil market was gone and predicted its end, OPEC members’ loyalty to their common mission could make a new alliance including even some oil suppliers out of the OPEC which empowered them to lead the international oil market again which is the fundamental of recent raises in oil prices, even by threatens from shale oil and not significant improvements in the world growth rate…. It approved that OPEC is mighty yet but respecting their mission in future against the shale oil and new energy sources could interpret its fate.

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