Connect with us

Energy News

ADB Supports 275 MW Power Plant to Boost Energy Access in Sumatra, Indonesia

Newsroom

Published

on

The Asian Development Bank (ADB) today signed a private sector financing package to support the construction of a 275-megawatt combined-cycle gas turbine power plant in Riau province in central Sumatra, Indonesia, to help secure the country’s energy future and provide communities with more affordable and reliable electricity.

The financing consists of a $70 million A loan from ADB’s ordinary capital resources and $82 million B loan from Sumitomo Mitsui Banking Corporation and MUFG Bank, with ADB providing a partial risk guarantee (PRG) to the participating commercial banks. The International Finance Corporation (IFC) will provide $50 million for the Riau Natural Gas Power Project in the first-ever cofinancing of an infrastructure project by ADB and IFC in Indonesia.

ADB will also administer a $20 million loan from the Leading Asia’s Private Sector Infrastructure Fund (LEAP), supported by the Japan International Cooperation Agency. Established in March 2016, LEAP’s mandate is to help fill financing gaps and increase access to finance for ADB-supported infrastructure projects in Asia and the Pacific.

“ADB’s involvement in the project has helped secure long-term commercial bank financing necessary for any large-scale infrastructure investment, which has remained a challenge in Indonesia,” said Infrastructure Finance Division Director for Southeast Asia, East Asia, and the Pacific at ADB’s Private Sector Operations Department Mr. Jackie B. Surtani. “ADB’s role as a lender and provider of PRG to the project’s B loan lenders will enable the project to mobilize a significant amount of long-term debt.”

The project is being implemented through PT. Medco Ratch Power Riau, a special purpose vehicle partially owned by PT. Medco Power Indonesia, a leading developer and operator of small and medium-sized independent power producers (IPP) in the country, and Ratchaburi Electricity Generating Holding Public Company Limited, Thailand’s largest IPP.

“ADB’s role was key in getting this transaction closed from the negotiation stage of the power purchase agreement to the structuring of the financing package,” said PT. Medco Power Indonesia Chief Executive Officer Mr. Eka Satria.

The plant is expected to provide stable and reliable power to the domestic grid, amounting to about 1,445 gigawatt-hour annually. The use of combined-cycle gas-fired power generation will improve the environmental sustainability of the current energy mix in Sumatra by displacing diesel and coal as fuels for electricity generation.

Continue Reading
Comments

Energy News

IEA holds high-level workshop on outlook for offshore wind energy

Newsroom

Published

on

Participants from around the world discussed future development plans for offshore wind at the workshop. (Photo credit: IEA)

The IEA held a high-level workshop on the outlook for offshore wind energy on Monday, bringing together 80 senior representatives from government, the private sector, research groups, academia and international organisations.

Participants joined from countries around the world, including many from Europe, the United States, Japan and China. Altogether, the countries represented at the workshop account for 97% of current and planned offshore wind development.

Renewable energy is changing the nature of electricity supply, and offshore wind power has great potential to contribute to cleaner and more secure power systems. Technological improvements for offshore wind are improving performance and lowering the costs of the electricity it produces, drawing interest from markets across the globe.

Monday’s workshop covered the current status of and regional policy plans for the development of offshore wind, along with the key opportunities for accelerating deployment and the main challenges constraining growth. It took place in support of the first in-depth look at offshore wind in the World Energy Outlook (WEO), the IEA’s flagship publication.

“We must accelerate the deployment of all low-carbon technologies, from renewables to nuclear power to carbon capture, utilisation and storage,” Dr Fatih Birol, the IEA’s Executive Director, said in his opening remarks. “Our analysis has shown that decarbonising electricity as rapidly as possible is at the heart of any sustainable energy future, and offshore wind has a major role to play in this effort.”

Renewables capacity growth worldwide stalled in 2018 after two decades of strong expansion. At the same time, additional electricity supply from renewable sources failed to keep pace with the rapid growth in electricity demand. As a result, the power sector accounted for almost two-thirds of the global increase in CO2 emissions, which reached an all-time high in 2018. In this context, tapping the potential of offshore wind alongside other low-carbon technologies will be critical to achieving global sustainable development goals.

Dr Birol will launch the WEO Special Report on Offshore Wind in October in Copenhagen, Denmark, alongside the Danish Prime Minister. The World Energy Outlook 2019 will be launched on 13 November.

Continue Reading

Energy News

IRENA to Drive Clean Energy Transition at Ministerial in Vancouver

Newsroom

Published

on

From 27-29 May, Ministers from over 25 countries will gather in Vancouver to accelerate progress towards a clean energy future. The objective of this year’s 10th Clean Energy Ministerial (CEM10) and 4th Mission Innovation (MI-4) hosted by Canada is to advance the development of clean energy policy, technology and innovation globally. The Canadian host will particularly highlight the leadership of women, Indigenous peoples and youth in the energy sector.

IRENA will be present, widely engaging in high-level meetings and side-events, therewith contributing to driving the clean energy transition further. IRENA’s delegation will be led by Director-General Francesco La Camera.

In addition to the Agency’s participation in ministerial plenary session, IRENA’s engagement will mainly focus on innovation, long-term energy planning and gender equality in the energy sector.

IRENA will provide insights about its recently published Innovation Landscape for a Renewable-Powered Future report focusing on innovations in market design that complement technology-driven innovation. The objective is to showcase innovation and feature cutting-edge technologies and solutions from around the world.

A dedicated session on long-term planning will provide an opportunity to share the key policy-relevant insights from the 1-year CEM long-term energy scenarios (LTES) Campaign and will allow attendees to discuss and debate the implications. The event aims at assisting policy and decision makers in understanding how long-term energy scenarios can inform their planning processes for the global transition. The event will also explore transition challenges and how these are reflected in scenarios and policy changes. For more information see Event Flyer.

IRENA will contribute to the ministerial debate on gender equality by presenting its latest report on Renewable Energy: A Gender Perspective. The objective is to rise awareness and improve the participation of women in the clean energy sector as well as close the gender gap.

More information on the website of CEM20/MI-4.

IRENA

Continue Reading

Energy News

IEA publishes new review of Morocco’s energy policies

Newsroom

Published

on

The International Energy Agency released the latest in-depth review of Morocco’s energy policies today, welcoming the institutional, legal and fiscal reforms undertaken to promote the sustainable development of the country’s energy sector.

The report was presented in Rabat by Dr Fatih Birol, the International Energy Agency’s Executive Director, in the presence of Morocco’s Minister of Energy, Mr Aziz Rabbah. The report is the IEA’s second in-depth review of Morocco’s policies, after a first edition was published in 2014. Morocco joined the IEA Family as an Association country in 2016.

Since the last review, the IEA noted the government’s positive efforts to boost renewable investment, provide access to electricity, and phase out of subsidies for fossil fuel consumption. With the exception of bottled butane, fuel prices are now linked to the international market. 

Morocco is pursuing an ambitious energy transition pathway. But reductions in greenhouse gas emissions by 2030, in line with the country’s commitments to the Paris Agreement, will require the scaling up of private and public investments. The IEA’s review provides detailed recommendations to maintain the momentum for reform and increase ambitions for the country’s energy transition. It notes that Morocco has ample opportunities for efficiency improvements and more renewables deployment. For now, the country still relies on oil, gas and coal imports for 90% of its energy needs.In power generation, coal accounts for 54%.

In this context, the IEA welcomes the government’s renewed focus on energy efficiency, through the National Energy Efficiency Strategy and related action plans, for instance. Public procurement is an important driver for the deployment of cost-effective energy efficiency services and technologies. Morocco also refurbished its coal-fired power generation fleet with efficiency upgrades to ultra-supercritical technology. Providing adequate funding for energy efficiency programmes, and coordinating them across government agencies, is also critical.

The world’s largest concentrating solar park at Ouarzazate illustrates Morocco’s ambition and technological capability. To develop the country’s large renewables resources, the government is pursuing power sector reform, creating a national electricity regulatory authority, developing new interconnections with Spain and Portugal, and planning to boost power trading and integrate its electricity market regionally.

“I am very pleased to count Morocco as a member of the IEA Family,” said Dr Birol. “It was the first country in the Middle East and North Africa to join us. Morocco’s success in moving towards universal access and phasing out fossil fuel subsidies is a role model for many countries, making it an ideal partner to host regional training and capacity building programmes that help to improve energy policy making across Africa.”

Minister Rabbah and Dr Birol agreed to increase the collaboration between Morocco and the IEA, including through new training activities on energy efficiency policies and data gathering for a wider group of African countries.

The review also provides recommendations for strengthening oil, gas and electricity security. Morocco is now fully dependent on oil product imports after the closure of its only refinery in 2015 and needs to invest in storage capacity and strengthen its stockholding regime. Domestic gas discoveries and the global abundance of liquefied natural gas offer a new context for the role of gas in Morocco.

This in-depth review was carried out by the IEA at the request of the Ministry of Energy, Mines and Sustainable Development, with input coming from many authorities and energy sector stakeholders in Morocco.

Continue Reading

Latest

Hotels & Resorts2 hours ago

Marriott International Debuts JW Marriott Hotel in Qufu, Birthplace of Confucius

JW Marriott announced the opening of the new JW Marriott Hotel Qufu in Shandong province, China. Owned by Shandong Luneng,...

Middle East3 hours ago

The Iran Question

Will there be war with Iran?  Will there not be war with Iran?  The questions are being asked repeatedly in...

Urban Development5 hours ago

The living air purifiers cities need more of

In our all-too-hectic urban lives, a city park is a great place to unwind. Trees and green spaces have mental...

Reports15 hours ago

Urgent action needed to address growing opioid crisis

Governments should treat the opioid epidemic as a public health crisis and improve treatment, care and support for people misusing...

Intelligence17 hours ago

Central Asian Jihadi Groups Joined Taliban’s “Al-Fath Jihadi Operations”

Al Qaeda-backed jihadist groups Katibat Imam al Bukhari (KIB), the Islamic Jihad Union (IJU) and the Turkestan Islamic Party (TIP),...

Newsdesk19 hours ago

UNIDO and Italy further strengthen cooperation with focus on Africa and innovative partnerships

The Director General of the United Nations Industrial Development Organization (UNIDO), LI Yong, spoke at the opening ceremony of the...

Green Planet21 hours ago

India advances ground-breaking plan to keep planet and people cool

India’s new comprehensive Cooling Action Plan targets an increase in sustainable cooling for the good of its population, while helping...

Trending

Copyright © 2019 Modern Diplomacy