Renewable Energy Issues- NEDO’s Experience in

Southeast Asia -

10 December 2002

Masahiro Miyazaki

NEDO Bangkok (Southeast and South Asia Office)New Energy and Industrial Technology Development Organization, Japan

(NEDO)

Key Commitments, Targets and Timetables from the

Johannesburg Plan of Implementation

 

Energy

 

Renewable Energy

Diversify energy supply and substantially increase the global

share of renewable energy sources in order to increase its

contribution to total energy supply.

 

Access to Energy

Improve access to reliable, affordable, economically viable,

socially acceptable and environmentally sound energy services

and resources, sufficient to achieve the Millennium Development

Goals, including the goal of halving the proportion of people in

poverty by 2015.

1

(2008)(2030) (2004)100

2

Electricity Supply in Rural Area in SEA

13

55

30

99

75

98

71

0

20

40

60

80

100

Hou

seho

ld a

cces

sibi

lity

to e

lect

rici

ty (

%)

as of 2000

Renewable Energy

- Solar PV (Photovoltaic)

- Solar thermal

- Small Hydro

- Wind

- Biomass

- Biogas

- Bio-fuel

- Waste to energy

- Geothermal

3

NEDO PV Project in Malaysia (Sabah State) 1992 - 1997

“Accelerated Demonstrative Research under Tropical Weather Conditions”

4

SHP Development in SEA Countries

14 1714

74.553.4

40.7

6.0429.6

574860

24.77

86

12000

10000

28500

18000

10000

0

100

200

300

400

500

Dev

elop

men

t of

sm

all/

min

i hyd

roup

to

2000

(M

W)

-5000

5000

15000

25000

35000

Tota

l exp

loit

able

hyd

ro r

esou

rces

(MW

)

Existing stations

Stations in planning

Total exploitable hydro resources

175000

5

Biomass: Cogeneration Potential

4200

7056

7480

3227 4107

2997

2030

5220

50 3861613

293

1160

0

4000

8000

12000

16000

Indonesia Malaysia Philippines Thailand Vietnam

GWh/

year

Sugar

Rice

Palm oil

14677

7349

3693

8833

5267

6

Total potential

Thailand

37337

748 13 0

149348

2992 52 00

20000

40000

60000

80000

100000

Fair Good very good Excellent

SqKm

.

0

100000

200000

300000

400000

MW

Land area Potential

Vietnam100361

25679

2187 113

102716

8748452

401444

0

20000

40000

60000

80000

100000

Fair Good very good Excellent

SqKm

.

0

100000

200000

300000

400000

MW

Land area Potential

Cambodia

6155

315 30 0

246201260 120 0

0

20000

40000

60000

80000

100000

Fair Good very good Excellent

SqKm

.

0

100000

200000

300000

400000

MW

Land area Potential

Laos

38787

6070671 35

155148

242802684 140

0

20000

40000

60000

80000

100000

Fair Good very good Excellent

SqKm

.

0

100000

200000

300000

400000

MW

Land area Potential

Fair 6-7 m/sGood 7-8 m/sVery good 8-9 m/sExcellent > 9 m/s

Wind Energy Potential of Southeast Asia at 65 M.Source: Wind Energy Resource Atlas of Southeast Asia Prepared for the World Bank Asia Alternative Energy Program by True Wind Solutions, LLC, Albany, New York

7

Production Cost Ranges for Fossil and Renewable Resources 1990, 2000, 2005

0

10

20

30

40

50

60

Wind PV Bio Geo

Prod

uctio

n Co

st: U

S ce

nts p

er k

Wh

Y1990

Y2000

Y2005

Source: G8 Renewable Energy Task Force Report, 2001

2000 ConventionalProduction Cost Range

2000 ConventionalRetail Cost

2000 Off Grid Cost

8

Lessons Learned

Failures of RE projects are not technology but institutional

problems.

 

- Governmental policy for rural electrification and RE

- Participation from local community

- Tariff collection for maintenance

- Income generating activities

- Training for local people

- Maintenance service by suppliers

9

What is necessary for rural electrification?

 Policy issues:- Government policy and regulatory framework to encourage RE (IPP, import duty exemption, etc.) - Active partnership between the public and private sectors- Financial support to villagers and businesses- Awareness of RE technology, cost and benefit (Demonstration projects) Private sector:- Commercial business to provide RE equipment and services (including maintenance and repair, training for local people) Village community: - Participation of village community- Productive use of electricity (income generation)- Training for proper maintenance- Electricity tariff for maintenance and repair

10

Vietnam

- 3.9 million households (18 million people) have no

access

to electricity.

- Government of Vietnam has a plan to extend national

grid

to 90% of rural households by 2005.

- Village-commune renewable projects including small

hydro,

PV and wind turbine were developed.

- SELCO Vietnam has successfully installed SHS in rural

areas

since 1995 in cooperation with Vietnam Women’s Union

and

Vietnam Bank for Agricultural and Rural Development.

11

NEDO Project in Vietnam(Man Yang Province) 1997 - 2001

“Hybrid System of PV Power Generation and Micro Hydro Power Generation”

PV Power Generation approx. 100 kWMicro Hydro Power Generation approx. 25 kW

Climate Observation Instruments Load

River

Hydro power

yard

PV yardPV array

12

Cambodia

- Cambodia has no national grid and electricity is

generated by 22

isolated diesel-generating systems.

- Only 10-12% of households have access to electricity.

- In rural areas, conventional biomass fuels mainly for

cooking meet 85% of energy requirements.

- More than 50% of households in rural areas use

rechargeable

batteries. There are about 1,500 battery-charging

stations run by

diesel generators. 13

Electricity tariff in Cambodia

700

350

1200

900

2720

650

1500

2000 2000

0

500

1000

1500

2000

2500

3000

Phnom PenhEDC

Local cities byEDP

Small IPP inrural areas

Batterycharging tariff

Stand alone PV Micro-Hydro

Riel

/kW

h

1 US$ = 4000 Riel

estimate

estimate

15

Cambodian RE and Rural Electrification

Project

　 Objectives:

－ 5% of power generated by RE by 2007 (8 MW)

- 100,000 households with urban quality electricity by

2007

- ~10,000 households served by solar and other RE

- Sustainable market for RE systems

16

NEDO Project in Cambodia (Kompong Cham Province) 2002 - 2004

“Dispersed Power Generation System (PV + Micro Hydro)”

PV Power Generation newly installed approx. 80 kWMicro Hydro Power Generation newly installed approx. 40 kW 17

NEDO Project in Cambodia (Sihanoukville City) 2002 - 2004

“Combined Power Generation System (PV+Biogas)”

PV Power Generation newly installed approx. 50 kW Biogas Power Generation newly installed approx. 60 kW 18

Thailand

Policy:

- Energy Plan 2002-2011

- Energy Conservation Promotion Fund (ENCON fund)

- Small Power Producers (SPP) and VSREPP

 

RE projects:

- EGAT Rooftop PV

- PV pilot project in Mae Hong Son (500kw)

- Rural electrification (PV, Mini-hydro)

- Wind power pilot project

19

NEDO Project in Thailand (Kanchanaburi Province) 1992 - 1997

“PV Power Generation System for Battery Charging Station”

PV Power Generation 4 kW

20

NEDO Project in Thailand (Libong Islands, Trang Province) 1999 - 2003“Grid-Connected PV Power Generation System”

Diesel Generator

Home System

PV module

AC module

Grid

Battery Charging Station

PV Power Generation 100 kW 21

GHG Emissions

1224 1307

6053

42053975

6746

0

6.8

00

-6

11.4

-7-5.5

-80

1000

2000

3000

4000

5000

6000

7000

8000

Base year Y1999 Y2010

-10

-5

0

5

10

15

Japan

USA

EU

Japan (comparedwith base year)USA (compared withbase year)

EU (compared withbase year)

(CO2 equivalent million ton)

22

- 2.50%

Emission Reduction of CO2, Methane, Nitrous oxide + 0% : Emission reduction of CO2 from energy utilization- 0.5% : Emission reduction of Methane, Nitrous oxide, etc.- 2.0% : Technology innovation and voluntary energy

conservation by the public

+ 2% Emission control of Fluorocarbon alternatives (HFC, PFC, SF6)

- 3.90% Sinks (Forestation etc.)

Remainder Kyoto Mechanisms

- 1.60%(Emissions Trading, Joint Implementation, Clean DevelopmentMechanism)

Target of GHG Emissions Reduction in Japan, 2010

23

Cost of CO2 Reduction Comparisons

24

Non-AnnexⅠCountry(Developing country)

AnnexⅠCountry(Developed country)

CERs = Certified Emission ReductionsOE = Operational Entity

Government

(5) CERs

Reduction of GHG Emissions

Financing, 　 Technologies, etc.

(4) Verification/ Certification

Monitoring

(1) Agreement

(2) Validation

Government

CDM Project

UNFCCC / CDM Executive Board

OE 2

OE 1

CDM Scheme

Project participant

approval

Project participant

Financing, 　 Technologies, etc.

approval

Project design document

(3) Registration

25

Conclusion 

- RE plays a key role in poverty alleviation in off-grid rural areas but

income generation need be incorporated.

- Participation of local people is vital for successful RE

projects.

- Government policy and regulatory framework to encourage

RE is

crucial.

- Private businesses supplying RE equipment and

maintenance services should be encouraged.

- Demonstration/Pilot Projects should be implemented and

replicated.

- Financial support is essential.

- CDM should be explored as a new funding scheme.

26