Investing in a healthier and cleaner energy future

Asia is about to embark on a green growth spurt with growing acceptance of the need to switch from fossil fuels to cleaner energy which will provide at the same time widespread economic, social and environmental benefits. There is a readiness by the private sector to play a leading role in this clean energy revolution along with the realisation by many Governments that they need to create the enabling environment for green growth through appropriate regulation and incentives.

This was my take from the Green Growth and Business Forum held in Singapore earlier this month, where speakers from Europe and from Asia pointed out the need for all countries to acknowledge the realty of climate change and avoid the huge costs that unabated climate change will impose.

It became clear from presentations by public and private sector speakers that green growth will not just help countries get onto a lower emissions trajectory, it will help them do so in a way which is consistent with continued, sustainable economic growth.

For our part, I was able to tell the forum a little the Armstrong journey where renewable energy investments have created jobs in Southeast Asia, led to avoided CO2 emissions, provided clean, healthy and more sustainable energy, as well as led to the implementation of international environmental, social and governance standards.

So it is not business as usual in the sense of maintaining economies in the fossil-fueled, high emissions trajectory which we’ve seen for some time, but introducing the new green business revolution – public and private sector together – to transform economies by investing in a healthier and cleaner energy future.    – Andrew Affleck

Philippines: Investment barriers to renewable energy technologies

In its comprehensive report “Towards high quality & low carbon power systems in Asia”, Climate Markets and Investment Association (CMIA) looks in detail at the Philippines where “dependency on imported fossil fuel has been growing over the past decades” and “renewable energy technologies are still facing substantial investment barriers”.

The full CMIA report written by Ann Lehmann is freely available – http://www.cmia.net/cmia-in-the-news/141-cmia-report-renewable-energy-in-asia-140519 – so here we provide some of the highlights.

Its summary for policy makers is headed with the question: Keep on risking the future? The report states that despite ambitious policies and agreed cross-party visions towards a healthy and prosperous Philippines, the country has set itself on a high-risk and high-carbon development path that will be hard to reverse if it continues.

• Dependency on imported fossil fuel has been growing over the past decades and will keep doing so if the country continues on a business as usual path.
• Conservative estimates suggest that the country’s net oil imports of 277,000 bbl/d in 2012 resulted in a fuel bill for the Philippines of around US$ 9.3 billion for oil alone in. Two and half years’ worth of oil would already be enough to cover the entire investments needed for the 10 GW additional renewable energy (RE) capacity planned by the Government (Total investment needs are estimated at PhP 1.2 trillion, app. US$ 25.6 billion) (EIA 2012, APEC 2013).
• All this spending for fossil fuels won’t help to deliver on both economic and social development goals. The current centralised fossil fuel based energy system is costly and inefficient and further expansion will even worsen the situation by locking-in fuel costs for future generations that will further hamper economic development.
• The current system has failed to increase electrification and growth outside of urban centres, it does not create employment in rural areas and it does not deliver electricity to the 30% of the population without electricity access to date, which is needed to create opportunities for rural growth. Not to mention the environmental damage to local and global ecosystems and their devastating side effects.
• The service sector and households are the main driver of economic growth in the Philippines today and the work force is growing at 2% per year (ADB 2013). Missing out on investing into healthy ecosystems and creating jobs across the country will take the drive out of that development, which would put future GDP growth at risk. A fossil-fuel based future is the wrong future for poor and vulnerable communities that depend on foreign currency remittances from overseas workers.

A system change is possible, says the report and that technologies are available to change that trajectory.

Decentralised on- and off-grid power systems hold the potential to massively increase rural electrification and deliver on a number of development goals: they create rural employment, avoid and reduce waste, encourage local infrastructure development, reduce dependency on fossil fuels and free up foreign reserves.

• The manufacturing industry and expanding rural business development hold the potential to absorb significant parts of the incoming workforce in the Philippines. Unlocking this potential in industry and in SME sectors will require stable and high-quality energy systems to be in place.
• New approaches to energy system planning at regional and local level are needed to assure optimal integration of generation technologies that are based on the creation of ‘virtual power stations’ that manage supply and demand peaks of the various technologies (including energy storage) and provide for the reserve margin, just as conventional power stations do. These systems are currently being tested globally and in the region, but to work efficiently they need to be tailored to resources and conditions in the Philippines.
• Private and public national and international investors are ready to deploy capital in sustainable energy systems, but are being held back by uncertainty over the commitment of the country to RE. The Feed-in-tariff was a good first step, but without further – and major – improvements, will not release the capital needed to meet the RE goals of the country. Investors are hugely disappointed by the scheme and are already moving away from it (e.g. towards closure of direct power off-take agreements with local distributors or consumers).

And the report makes it very clear that regulatory support needs to be ramped up.

To date, the private sector has only committed to finance 125 MW (US$ 382 million) of the planned 10 GW new RE capacities. This leaves a huge financing gap of over US$ 25 billion, which will need to be closed in due course if the nationally set targets are to come within reach. The following actions need to be taken now to encourage the private sector to invest in the Philippines and not move away to other countries in the search for clean development opportunities

Investors’ recommendations for the Philippines:

An ambitious expansion plan has been set for the power sector to meet growing demand and deliver on the national target to provide “Energy Access for More” while stimulating local productivity and countryside development. As per the Philippine Energy Plan (PEP) 2012-2030, a total capacity increase of 80% (13 GW) to around 29 GW is needed to meet the projected peak demand in 2030, which includes tripling RE generation capacity from about 5 GW in 2010 to 15 GW by 2030.

The National Renewable Energy Program (NREP 2011-2030) aims at 50% power production from RE sources and provides technology specific generation targets until 2030.

Furthermore, the program introduces the milestone target of 2,155 MW of capacity additions by 2015, which is highly ambitious considering that only 125 MW of the planned 10 GW additional RE capacity have been committed to date (APEC 2013). If this deployment speed prevails over the coming years, neither the 2015 milestone target, nor the 2030 target will be within reach.

In consequence, investors are already moving away from the scheme and towards bi-lateral off-take agreements with customers and distributors in the vicinity. This ‘bottom-up’ development of on-the-ground opportunities shows that the private sector is ready to deploy capital in sustainable power supply in the country. The right incentives could spark much faster deployment while ensuring technology integration and system stability.

Recommendations for the Philippines

I.Slow down investment in fossil generation capacity now.

Every peso that is spent towards maintaining the status quo provides a barrier for investments into sustainable energy opportunities.

II. Regulatory reforms needed now

a. Review the RE Act and remove barriers for off main grid generation,

b. Provide support for micro-grid development

c. Encourage bi-lateral PPAs between power generators and local costumers.

d. NREP targets for solar power don’t include off-grid rooftop or grounded solar PV and hybrid systems.

III. Institutional reforms needed now

Enhance neutrality on NREB by allocating an equal number of chairs to public and private sector stakeholders.

IV. FiT reforms needed now

a. develop sub-categories for the FiT depending on technology maturity, regional specification and socio-economic settings (e.g. solar PV for households, commercial roof tops, community buildings, commercial solar farms etc.); include municipal solid waste as eligible technology

b. Add a targeted bonus on top of the tariff to promote reliable technologies for sustainable system performance and specific regions.

c. Reduce the costs for project developers by standardising and simplifying the regulatory process: shortening the approval process; allocating more staff and standardising eligibility requirements (e.g. provide checklists, best practices etc.)

d. Introduce a standard PPA format for smaller scale projects

V. Prepare the ground for change

1. Accelerate development and research of net-metering and smart-grid program suitable for local conditions
2. Implement techno-economic studies and modelling at sub-national/ local level to develop regional targets and investment strategies. Set targets for off-grid power generation. Integrate these targets into barangay plans and sitio plans where applicable.
3. Provide education and information campaign on decentralised renewable energy systems, involve sub-national levels of administration.
4. Introduce a carbon price across the economy.

Anna Lehmann, Report Author and Board Member, CMIA, anna.lehmann@climatepolicyadvisory.com

Anna Lehmann is independent climate and energy policy expert with more than 12 years experience in working for public and private sector investors in South, East and South East Asia. She is currently implementing a long-term research project on public sector incentives for low carbon investments in the power sector in Thailand and the Philippines.

Anna has more than 12 years working experience in international climate policy, of which six years in high-level policy advisory. She served as investment advisor for two carbon market funds and holds a Board seat with the London based Climate Markets and Investment Association (CMIA). Based out of Germany, she aims at transferring discussions taking place within Europe on incentives for sustainable off-grid power systems into developing countries.

Source: www.cmia.net

Further Investments Planned in Indonesia’s Mini Hydro Portfolio

Previously Armstrong also announced a partnership with Mandiri Investment Management to work together to invest in renewable energy projects, starting from mini-hydro sector in Indonesia. There’s more to come, with plans to commit to fund the development and operation of a portfolio of mini-hydro plants in Indonesia.  With the largest renewable energy resources in Southeast Asia, Indonesia offers sustained long term growth in power demand and mini-hydro has now become one of the most attractive renewable energy sectors in Southeast Asia.

Indonesia

Indonesia has the largest renewable energy resources in Southeast Asia with sustained long term growth in power demand. After the revision of feed-in-tariff system announced recently, the Indonesian mini-hydro has now become one of the most attractive renewable energy sector in Southeast Asia.

Last month (May), Indonesia announced that a new higher tariff for electricity purchased from mini-hydropower plants had been set by the Energy and Mineral Resources Ministry to make the sector more attractive for industry players.

In April this year, Armstrong also announced a partnership with Mandiri Investment Management to work together to invest in renewable energy projects, starting from mini-hydro sector in Indonesia.

In advance of more investment commitments by Armstrong Clean Energy Fund for Southeast Asia, Andrew Affleck said: We expect to deploy our capital rapidly to deliver high-quality mini-hydro assets  to support sustainable development of Indonesia.”

Armstrong closed its Clean Energy Fund when it reached US164 million last November. Prior to the latest deal, it has made three investments from the fund: a capital commitment of up to US$30 million to Annex Power for solar and biogas projects in Thailand, Indonesia and the Philippines, an equity stake in Symbior Elements to develop a portfolio of solar generation in Central and Northeast Thailand and a capital commitment of up to US$ 40 million to The Blue Circle for wind and solar projects in Mekong Region.

Source: www.armstrongam.com

At the Green Growth and Business Forum, Mr Pak Artissa Panjaitan from Indonesia’s Climate Change Centre pointed out that with 13,000 inhabited islands, Indonesia had a challenge to reach all with electricity.  But the aim was to energise the majority of the population with an electrification rate target set at 97.7% of the population by 2022.

Based on 2013 – 2022 RUPTL (Power Generation Business Plan), signed on 31 Dec. 2013, Indonesia plans to provide electricity to 77.2 million customers by 2022, compared to 49.7 million  in 2012).

He pointed out that the total investment needed was US$ 125.2 billion. PLN (Perusahaan Listrik Negara, the Indonesian government-owned corporation responsible for electricity distribution, has the financial capacity to fund US$ 71.1 billion, so there is a need for an additional  US$ 54.1 billion in funding.

Indonesia is looking towards public private partnership to secure the necessary funding to get electricity to all parts of Indonesia.

Pak Panjaitan heads the Low Emission Development Strategies (LEDS) Cluster of the Indonesia Climate Change Centre

The LEDS Cluster is expected to produce scientific analyses in support of policy and action for mainstreaming low emission development strategies into development plans at the national and sub-national levels.

Activities under LEDS Cluster involve:

1. Working with research institutions of line ministries and other science-based collaborative groups, and coordinates with regional and national technical agencies.
2. Convening consultation series and inter-institutional dialogues, involving Indonesian and international experts from universities and technical agencies, stakeholders, local governments, professional communities, engaged activists and scientists to coordinate scientific findings.
3. Continually developing policy briefing papers, elaborating DNPI’s research on low carbon growth strategies (LCGS) developed at the national and provincial levels, as a basis for an integrated LEDS framework
4. The Cluster aims at developing longer-term work programs on LEDS to address critical information gaps identified during their work.

Source: www.iccc-network.net/en/about-us/clusters/leds

There is considerable hydro power potential in Indonesia. However, most potential capacity is at sites which are hard to access and quite distant from any sizeable markets.

One report says there is believed to be hydro power potential of over 22,000 MW in Papua and perhaps another 16,000 MW in South Kalimantan and Central Kalimantan. Total Indonesian hydro power potential has been put at over 75,000 MW, with only 5,705 MW being utilized. Ninety six  locations across the country with a total capacity of 12,800 MW would be developed 60 percent by PLN, while the rest would be offered to independent power producers.

One problem, especially in the Outer Islands off Java, is that relatively small hydro plants often experience operational problems such as shortages of water flow. In Lampung in September 2012 for example, towards the end of the dry season, two small hydropower stations operated by PLN (total capacity around 120 MS) ceased operation, causing blackouts in the region. Localised problems of this sort are common across much of the Outer Islands.

Source: www.thejakartapost.com/news/2012/01/25/pln-identifies-96-potential-locations-hydro-power-plants.html

Wind to speed up Vietnam’s clean energy investment

Two speakers from Vietnam at the Green Growth & Business Forum early June spoke of the country’s commitment to promote and facilitate investment in renewable energy – with wind energy, appearing having the greatest potential – and the announcement late May that French enterprises will provide Vietnam with the latest information on renewable energy development, the application of new technologies, the ability to transfer technology, and financial support. Read More

Green Growth and Business Forum: Vietnam Focus

Two speakers from Vietnam spoke at the Green Growth and Business Forum in Singapore on the country’s potential to grow clean energy and provide opportunities for investment in the sector.

Speaking on “Renewable energy for green growth implementation of Ministry of Industry and Trade (MOIT) of Vietnam was Hoang Van Tam, Head of Climate change Division, Industrial Safety Techniques and Environment Agency, MOIT

He presented the Government’s policy, strategy orientation and implementation plan, highlighting:

• Considering development of potential, available RE sources. In first stage focus on deployment of matured technologies with reasonable cost and subsidy levels suitably to conditions of the Country’s economy.
• Promoting, increasing share of RE in national energy balance, including energy production in general and electricity, thermal and fuels in particular.
• Priority for off-grid projects in electrification program in remote mountainous areas. Pay attention on RE development in areas where cost is lower than diesel or expansion of national power grid.
• Integrating RE development with improving social security, property alleviation.
• Integrating RE development with environmental protection, contributing in energy security and sustainable development.

He pointed out the potential for different energy generation from what is currently produced in Vietnam. Wind appears to have the greatest potential and while only 55 MW is currently produced, with current or planned projects, there is the opportunity to produce more than 3000 MW.

Bio gas and bio mass also have incredible potential in a current which is a major agricultural food producer. Bio gas has the potential for 2000 MW from the current 150 MW. While biomass is currently producing a mere 1.6 MW, but has the potential for much more.

He also made it clear his Government was committed to move from its fossil fuel dependence to encourage more renewable energy. He concluded by drawing attention to:

• Vietnam has a high potential to develop RE in general and biomass & waste power projects in particular on various scales.
• Government has an interest in RE development due to rapidly increasing power demand (ensuring of a sustainable socio-economic development).
• Government has recently shown its commitment to promote RE development through several incentives (taxation incentives, feed-in tariff, land use fee, environmental fee etc.).
• To support for investors, planning RE power at national and provinces are considered need.

Source: www.atmt.gov.vn

Providing a Country Profile, including the Opportunities and Challenges to scaling up Renewable energy in Vietnam was Dr. Nguyen AnhTuan of the Institute of Energy Vietnam.

Unlike some other countries in Southeast Asia, Vietnam already has 98% of its population (87 million) connected to the grid. But from a low level currently, Vietnam intends to move strongly into renewable energy. It plans to increase the share of new and renewable energy in total commercial energy to 3% by 2010, 5% by 2020 and 11% by 2050.

It also plans to harmonize national environmental standards with international standards and by 2015 all energy production facilities shall comply with new environmental standards.

Vietnam also wants to improve rural energy and electricity access:

•Increase the percentage of rural households using commercial energy for cooking to 50% by 2010, to 80% by 2020

•Increase the percentage of rural households accessed to electricity to 95% by 2010, 100% electrification by 2020

Vietnam is fortunate that 47.5% of its current energy production comes from Hydro power, thereby maintaining a lower level of C)2 emissions from energy production that many other Asian countries. But is still has 22.3% of its energy coming from coal fired sources, so it plans to do more with new renewable energy investment and production.

Dr Nguyen summed up by saying:

Vietnam has high potential to develop RE projects on various scales and the Government has an interest in RE development due to rapidly increasing power demand for ensuring of a sustainable socio-economic development.

Government has recently shown its commitment to promote RE development through several incentives, but not strong enough to attract investors from inside and outside of the country.

Dr Nguyen believes a combination of intervention measures are necessary to address both economic and non-economic barriers. The choice of measures is country and technology specific, and depends on the current level of market diffusion of a given RE technology as well as the national context

•Integrated approach for supporting RE,

•Strong regulatory framework,

•Financial incentives,

•Capacity building,

•Stimulate R&D

Source: www.ievn.com.vn

France helps Vietnam develop renewable energy

French enterprises will provide Vietnam with the latest information on renewable energy development, the application of new technologies, the ability to transfer technology, and financial support.

French Ambassador to Vietnam Jean Noel made the commitment at a conference in Hanoi on May 20, stressing that renewable energy is one of France’s priority cooperation areas for Vietnam.

“Energy cooperation is a key pillar in the Vietnam-France strategic partnership, and this area is expected to make great strides this year,” said the diplomat.

Vietnamese Deputy Minister of Industry and Trade Le Duong Quang said that although the country has potential for renewable energy development, the investment in the sector is still not commensurate with its strength.

He cited the low efficiency of renewable energy resources, alongside policy and technology application barriers, as the main reasons for limited investment.

According to Quang, Vietnam’s energy demand has increased by an average of 15 per cent per year over the last decade.

However, in the context of dwindling domestic fossil fuels, Vietnam depends more on world energy prices. It is forecast that the country will have to import coal to feed thermal power plants by 2015.

The exploitation of renewable energy sources including solar and wind is essential, contributing to ensuring national energy security and boosting sustainable development.

Source: http://english.vietnamnet.vn/fms/environment/102947/france-helps-vietnam-develop-renewable-energy.html

News of the Mekong Region energy partnership spreads globally

With the announcement last month that Armstrong Asset Management has teamed up with The Blue Circle to invest in clean energy projects in Mekong Region (Thailand, Vietnam and Cambodia), word has spread like wild fire around the world reported, by Bloomberg Energy and Renewable Energy World, among others. This issue we profile the company which was started by two Frenchmen in Singapore only last year. Read More

This is how the Renewable Energy World Editors reported the announcement:

New Financing Vehicle for Mekong Solar and Wind Energy

LONDON, 13 June 2014– Armstrong Asset Management has forged a new partnership agreement with The Blue Circle for wind and solar project financing in the Mekong Region of Thailand, Vietnam and Cambodia. With Armstrong agreeing to commit up to US $40 million in equity to fund the construction of wind and solar projects, it will also take a minority equity stake in The Blue Circle – a vertically integrated renewable energy developer operating in the region.

Currently the developer has a pipeline of over 600 MW of renewable energy projects under evaluation or negotiation in the Mekong Region.

“Having an institutional investor like Armstrong as a shareholder and project equity partner, with their extensive operational experience in Southeast Asia and specialization in renewable energy, will certainly accelerate the growth of The Blue Circle portfolio and strengthen our financing ability” said Olivier Duguet, CEO.

The agreement between the two Singapore based companies means that The Blue Circle will also benefit from Seed Capital Assistance Facility (SCAF) funding , an initiative by UNEP, ADB and GEF designed to help project developers overcome some of the challenges of greenfield project development.

Armstrong closed its Clean Energy Fund when it reached $164 million last November. Prior to the latest deal, it had made two investments from the fund: a capital commitment of up to US $30 million to Annex Power for solar PV and biogas projects in Thailand, Indonesia and the Philippines, and an equity stake in Symbior Elements to develop a portfolio of solar generation in Central and Northeast Thailand.

The development follows a recent co-investment deal between Armstrong and Mandiri Investment Management to work together to invest in renewable energy projects in Indonesia, starting with small and micro hydropower developments.

Source: http://www.renewableenergyworld.com/rea/news/article/2014/06/new-financing-vehicle-for-mekong-solar-and-wind-energy

So who or what is The Blue Circle?

Here’s a brief profile:

The Blue Circle focuses on developing wind and solar energy projects in Thailand, Vietnam and Cambodia. The Singapore based company looks to bridge the gap in project development in the Mekong Region by bringing international project development experience, financial expertise and capabilities together with local market understanding. Its growth strategy is twofold: through the development of its own projects and through acquisition or partnership with local developers. By being vertically integrated, The Blue Circle can identify greenfield sites, pursue project development milestones up until financing and operating of the generating assets.

It was in November last year (2013) that The Blue Circle was formed. Here is the announcement at the time:

The Blue Circle: The Next Generation Of Renewable Energy Producers

French leading Renewable Entrepreneur Olivier Duguet is teaming with Southeast Asia Alternative Energy Specialist Jeff Peron to launch The Blue Circle. Headquartered in Singapore, with presence in Ho Chi Minh City and Phnom Penh, the new company aims at becoming a leading Independent Power Producer in the Greater Mekong River region. The Blue Circle is targeting to develop and invest in renewable energy projects in Vietnam, Cambodia, Laos, Thailand and Myanmar.

“Time has come for the Mekong countries to consider Renewable Energy for their base load needs” emphasizes Olivier Duguet. The Blue Circle positions itself as the next generation of Renewable Energy provider with innovative, custom-made green technology solutions for the power off-takers or communities it will serve. The company believes that to prevent the world’s fastest growing sub-continent from relying too heavily on fossil fuel imports, decentralized clean energy is the solution. Solar and wind energy will be the resources of choice for The Blue Circle, which boasts more than 21 years of experience in the field with its current management team.

Growth prospects for 2014 have been revised upwards by the Asian Development Bank at 7.5% for Cambodia, 5.5% for Vietnam, while the Word Bank is forecasting 5% growth for Thailand next year. “We are seeing energy shortage as a bottleneck for economic development in the Mekong region” adds Jeff Peron. ”

For example, there is a strong demand for alternative energy sources to support the growth of the tourism industry in coastal areas, or to power factories and industrial zones in countries such as Cambodia.” Given the current price of fossil fuels and their volatility, clean renewable sources in Thailand, Vietnam and Laos are promoted through feed-in tariffs or tax incentives to support their growing domestic consumption, or to export to neighboring countries. Blackouts are experienced weekly in Cambodia and Vietnam as both countries are racing to add new capacity.

In that context, The Blue Circle intends to deliver renewable energy at competitive prices and rapidly grow its asset base.

Source: www.thebluecircle.sg

Green Growth & Business Forum focus on energy investment

For Europe and Asia, green growth offers enormous economic and business opportunities, with the United Kingdom leading the way as world leader in installed capacity of offshore wind generating ten billion pounds of investment and 6,800 skilled jobs. The UK’s International Climate Fund is being deployed in a wide array of initiatives including 112 million pounds to the Global Environmental Facility which has supported projects across ASEAN, including 5 million pounds to a Climate Innovation Centre in Hanoi, and more than 7 million pounds spent in Indonesia to promote low carbon growth. Read More

Green Growth and Business Forum:

A numbers of speakers from the United Kingdom spoke at the Green Growth and Business forum, which was jointly organized by the Foreign and Commonwealth Office/the British High Commission in Singapore, alongside the National Climate Change Secretariat of Singapore, and supported by the Ministry of Environment and Water Resources and the Ministry of Trade and Industry.

Leading the UK charge was the British Minister of State for the Cabinet Office, responsible for Cities and Constitution, Rt Hon Greg Clark.

He has been responsible for producing two landmark policy papers which set out how the Conservative Government will make Britain a leading player in the low carbon field. One paper was on “The Low Carbon Economy” and the other entitled “Rebuilding Security”.

He pointed out in Singapore that growth offers enormous economic and business opportunities.

The global market for low carbon goods and services has been valued at over three trillion pounds – equivalent to approximately six trillion Singapore dollars – and is growing rapidly at about four percent each year. The UK green goods and services market – the sixth largest in the world – is worth around 128 billion pounds and supports nearly one million jobs.

“Our green goods and services exports are growing at about four percent each year, and we enjoy a trade surplus of more than five billion pounds in these sectors,” Mr Clark told the forum.

Offshore wind, where the UK is already the world leader in installed capacity, has generated ten billion pounds of investment and 6,800 skilled jobs. The UK’s offshore wind industry has been further boosted by the recent decision by Siemens to invest £160 million in wind turbine production in the Hull area; creating 1,000 jobs directly and countless more in the local supply chain.

Technological innovation is also playing a key role with opportunities in energy efficiency, energy management systems and storage, ‘SmartGrid’ technologies, clean transport and alternative energy vehicles; and intelligent data management.

He affirmed that governments can play their part in creating the enabling environment for green growth.

An example is the UK’s Green Investment Bank. Launched in 2012, its mission is to accelerate the UK’s transition to a green economy. The Green Investment Bank is a unique institution. It is a public company, operating unashamedly and unambiguously as a “for profit” bank, but with initial capital of almost 4 billion pounds provided by the UK government.

The Green Investment Bank aims to undertake targeted financial interventions, with the aim of improving the economics of marginal projects, and attracting private sector investment.

Mr Clark also emphasised the role of the private sector: “It has, and will continue to have, a crucial role to play in driving green growth and in the move to a greener economy. The business opportunities offered by green growth are the major theme that we will explore during our Forum today.”

He wrapped up by saying: “There are sound, hard-headed commercial reasons why businesses should embrace green growth. In the UK alone it could be worth 20 billion pounds to the economy over the next few years – in addition to the 23 billion pounds companies could save by using resources like energy and water more efficiently. That’s 43 billion pounds in savings and growth.”

His Excellency Antony Phillipson, British High Commissioner in Singapore took the stage at the second day of the Green Growth & Business Forum, primarily to set out what the United Kingdom is doing, to set an example and to demonstrate that it is committed to green growth and a low carbon future in Europe and Asia.

Here are some key extracts from his speech:

Green growth will not just help countries deliver a lower emissions trajectory, it will help them do so in a way which is consistent with continued, sustainable economic growth.

It will also help avoid the huge costs that unabated climate change will impose.

These costs are already being felt by the insurance industry. Losses relating to natural disasters and weather events have quadrupled from about 30 billion pounds in the 1980s to close on 120 billion pounds over the last 10 years.

And there are also the environmental and social costs to consider: the World Health Organisation estimates that globally a staggering one in eight deaths now results from exposure to air pollution.

Over 70% of the world’s greenhouse gas emissions come from energy use, so this is a global issue. It is a particular issue, however, at this moment in time for emerging and rapidly developing economies like those in South East Asia.

The majority of South East Asia’s emissions have traditionally come from the forestry and land use sectors, but this is changing.

According to the International Energy Agency, energy demand in the region has increased by 150% since 1990, and is projected to rise by a further 80% in the next 20 years.  On a business as usual pathway, South East Asian emissions, which already account for about 12% of global emission, could double by 2030.

With three quarters of all thermal power plants currently under construction in the region being coal-fired, and oil consumption projected to double by 2030, this is the business as usual reality.

Urgent action is therefore required in this region to incentivise and deploy lower carbon and renewable energy solutions.

On the energy demand side, the International Energy Agency’s Efficient ASEAN Scenario signposts an alternative future.

It suggests that the investment required for high efficiency energy technologies would be more than offset by lower fuel bills.

Between 2013 and 2035, cumulative additional investment in industry, transport and buildings amounting to more than 200 billion pounds could deliver fuel bill savings of almost 300 billion pounds.

Under this scenario, ASEAN energy intensity would improve by 2.5% per year on average, cutting growth in primary energy demand by almost 15% in 2035.

Research and innovation will play a crucial role in helping all countries meet the challenge of providing secure and affordable energy supplies to their citizens in a way that is consistent with a stable climate and high environmental standards.

Research is required to continue the development new ways of generating, storing, transporting and saving energy.

Innovation is required to reduce the costs of new technologies, to ensure that they can be deployed and will work reliably at scale, and that we have the infrastructure, skills and financing to make the best use of them.

In the UK we recognise the equal importance of research and innovation.

Our research councils are funding groundbreaking work at our universities and research centres.

Our Technology Strategy Board has developed seven Catapult centres where scientists and businesses work together on late stage research and development.

We already have Catapults in Offshore Renewable Energy, Transport Systems, and Future Cities, and we are about to launch a new Catapult which will focus specifically on Energy Systems, integrating approaches like distributed generation and smart energy meters.

We have an Energy Technologies Institute, a public-private partnership – involving Shell and Rolls-Royce, amongst others – which is putting £200 million into large scale prototype and generation projects.

The ETI recently helped a British company, Blade Dynamics, to develop an 80m long wind turbine blade, which is now being trialled by Siemens Wind.

At the same time, the UK government remains committed to working with countries around the world to promote lower carbon, greener economic development.

The UK’s International Climate Fund is the UK’s global climate finance offer to the developing world. 30% of this 4 billion pound fund goes to support projects aimed at reducing global greenhouse gas emissions.

Here in South East Asia, our International Climate Fund is being deployed in a wide array of initiatives, including:

- 112 million pounds that we have contributed to the Global Environmental Facility which has supported projects across ASEAN

- 5 million pounds we have committed to a Climate Innovation Centre in Hanoi, and the more that 7 million pounds we have spent in Indonesia to promote low carbon growth

- and further significant UK-funded initiatives are already planned or under way including 11 million pounds we will spend in Indonesia thorough the UK-German Nationally Appropriate Mitigation Actions (NAMA) Facility.

On science and innovation we actively encourage collaboration between UK and South East Asian researchers to meet the Green Growth challenge.

And as Minister Lee Yi Shyan noted in his remarks yesterday, Cambridge University has established its first research centre outside the UK here in Singapore, with the support of the National Research Foundation.

Working with NUS and NTU, the Cambridge team aims to develop ways to reduce the carbon footprint of the petrochemical industries on Jurong Island.

Strathclyde University, one of our leaders in tidal power, is working with the Energy Research Institute at NTU to develop solutions for South East Asia.

There is no doubt that this is a challenging path that we are embarking on. But as I said earlier it is not one that we can choose not to travel and, what’s more, at present we are making our way with insufficient haste and determination.

Only by continuing to work together, on best policy practice and in business, science and innovation will we succeed in achieving the growth we need but at an environmental and social cost that is sustainable.

My government is fully committed to building and using the partnerships we need around the world and particularly in this region to do just that.

Source: www.gov.uk/fco

Doubling Renewable Energy: Save Money & Avoid Climate Catastrophe

The world faces an important energy choice, according to a new report launched by the International Renewable Energy Agency (IRENA) in New York on 5 June . “REmap 2030” says that scaling-up renewable energy to 36% of the world’s total final energy consumption by 2030 is possible, affordable and will keep the world on a trajectory consistent with a CO₂ level of 450 ppm, the widely accepted threshold to limit global temperature increase to two degrees Celsius above pre-industrial levels by 2100.

IRENA report: 5 June 2014

Doubling Renewable Energy will Save Money and Avoid Climate Catastrophe, IRENA Says

36% renewable energy in the global energy mix is possible, affordable and helps mitigate climate change

The world faces an important energy choice, according to a new report launched by the International Renewable Energy Agency in New York today. “REmap 2030” says that scaling-up renewable energy to 36% of the world’s total final energy consumption by 2030 is possible, affordable and will keep the world on a trajectory consistent with a CO₂ level of 450 ppm, the widely accepted threshold to limit global temperature increase to two degrees Celsius above pre-industrial levels by 2100.

The report demonstrates that the investment cost for this global expansion of renewable energy is offset by savings of up to $740 billion per year on costs associated with pollution from fossil fuels.

“The central policy question is this: What energy sources do we want to invest in? Our data shows that renewable energy can help avert catastrophic climate change and save the world money, if all costs are considered,” said Adnan Z. Amin, Director-General of IRENA, in New York. “In answering this question, ‘REmap 2030’ makes a clear case for renewables. It shows the transition is affordable based on existing technologies, and that the benefits go well beyond the positive climate impact. Countries today face a clear choice for a sustainable energy future.”

Doubling renewable energy to 36% of global energy consumption will reduce the global demand for oil and gas by approximately 15% and for coal by 26%, cutting energy-related pollution and adverse health effects as well as increasing energy security for countries dependent on energy imports. It would also create a net gain of nearly one million jobs by 2030.

“We can double the renewable energy share in the global energy mix, but we are not on that path now. To realize the world’s renewable energy potential, all governments need to step up their efforts. We need to act now,” Dolf Gielen, Director of IRENA’s Innovation and Technology Centre, added. “IRENA recommends focusing on five key areas: planning realistic but ambitious transition pathways; creating enabling business environments; managing knowledge of technology options and their deployment; ensuring smooth integration of renewables into the existing infrastructure; and unleashing innovation.”

“REmap 2030” builds on the analysis of the energy requirements in 26 countries that account for 75% of global total final energy consumption. IRENA collaborated with countries and research institutions in the development of the report, which derives its objective from the United Nations Secretary General’s Sustainable Energy for All (SE4ALL) initiative. The report was launched today at the SE4ALL Forum at the United Nations Headquarters.

About the International Renewable Energy Agency

The International Renewable Energy Agency is mandated as the global hub for renewable energy cooperation and information exchange by 131 Members (130 States and the European Union). About 40 additional countries are in the accession process and actively engaged. IRENA supports countries in their transition to a sustainable energy future, and serves as the principal platform for international cooperation, a centre of excellence, and a repository of policy, technology, resource and financial knowledge on renewable energy.  The Agency promotes the widespread adoption and sustainable use of all forms of renewable energy, including bioenergy, geothermal, hydropower, ocean, solar and wind energy in the pursuit of sustainable development, energy access, energy security and low-carbon economic growth and prosperity.

Source: www.irena.org

A game-changer for the renewable energy industry.

Australia’s CSIRO has used solar energy to generate hot and pressurised ‘supercritical’ steam, at the highest temperatures ever achieved in the world outside of fossil fuel sources. Supercritical steam is a breakthrough for solar energy as the sun could be used to drive the most advanced power stations in the world, currently only driven by coal or gas.

3 June 2014

SUPERCRITICAL SOLAR – NEW FRONTIER FOR POWER GENERATION

CSIRO has used solar energy to generate hot and pressurised ‘supercritical’ steam, at the highest temperatures ever achieved in the world outside of fossil fuel sources.

Supercritical steam is a breakthrough for solar energy and means that one day the sun could be used to drive the most advanced power stations in the world, currently only driven by coal or gas.

CSIRO’s Energy Director, Dr Alex Wonhas said this milestone is a game-changer for the renewable energy industry.

“It’s like breaking the sound barrier; this step change proves solar has the potential to compete with the peak performance capabilities of fossil fuel sources,” Dr Wonhas said.

“Instead of relying on burning fossil fuels to produce supercritical steam, this breakthrough demonstrates that the power plants of the future could instead be using the free, zero emission energy of the sun to achieve the same result.”

Supercritical solar steam is water pressurised at enormous force and heated using solar radiation. Around 90 per cent of Australia’s electricity is generated using fossil fuel, but only a small number of power stations are based on the more advanced supercritical steam.

The world record, set in May this year, was at a pressure of 23.5 megapascals (a measure of force per unit area), and temperatures up to 570 degrees Celsius. It is the combination of pressure and temperature demonstrated at scale that makes this such a breakthrough for solar power.

Commercial solar thermal power plants around the world use subcritical steam, operating at similar temperatures but at lower pressure. If these plants were able to move to supercritical steam, it would increase the efficiency and help to lower the cost of solar electricity.

The $9.7 million research program is supported by the Australian Renewable Energy Agency (ARENA) and is part of a broader collaboration with Abengoa Solar, the largest supplier of solar thermal electricity in the world. CSIRO and Abengoa Solar, with support from ARENA, are developing advanced solar storage to provide solar electricity at any time, day or night.

The breakthrough was made at the CSIRO Energy Centre, Newcastle, home to Australia’s low emission and renewable energy research. The Centre includes two solar thermal test plants featuring more than 600 mirrors (heliostats) directed at two towers housing solar receivers and turbines.

Although there is still work to be done before this technology is ready for commercialisation, ARENA CEO Ivor Frischknecht acknowledged the significant achievement saying it demonstrates the importance of research and development.

“This breakthrough brings solar thermal energy a step closer to cost competitiveness with fossil fuel generated power,” Mr Frischknecht said.

Source: www.csiro.au

Unilever’s Sustainable Living Plan incorporates renewables in a big way

When Unilever’s President for Southeast Asia and Australasia Peter Ter Kulve speaks he is brief and to the point. In four slides he showed at the Green Growth and Business forum he summed up the company’s global commitment to sustainable living, pointing to less waste, less cost and less risk. But he made it clear the company wants to enable innovation and collaboration, through sustainably-led growth with plans to double its use of renewables to 40% of all energy used by 2020.

When Unilever’s President for Southeast Asia and Australasia Peter Ter Kulve speaks he is brief and to the point. In four slides he showed at the Green Growth and Business forum he summed up the company’s global commitment to sustainable living, pointing to less waste, less cost and less risk.

But he made it clear the company wants to enable innovation and collaboration, through sustainably-led growth with plans to double its use of renewables to 40% of all energy used by 2020.

Unilever supports a move towards more sustainable forms of biofuels.

Mr Ter Kulve made it clear that Unilever’s aim is to reduce greenhouse gas emissions by a combination of improved energy efficiency, technology change and the use of renewable energy from the sun, wind, water, wood and waste.

At end of 2013 renewable energy contributed 27% of our total energy use compared to 15.8% in 2008.

Unilever will more than double our use of renewable energy to 40% of our total energy requirement by 2020.

He pointed to Unilever’s sustainable growth agenda with its three prongs:

• Positive social impact
• Double the business
• Reduce environmental impact

This is now embedded in the company’s Sustainable Living Plan.

He highlighted that this involved less waste, less cost and less risk.

It is important to recognise that Unilever doesn’t believe it can do it alone so he drew attention to “enabling innovation plus collaboration”.

His final point was very clear: Driving sustainability-led growth.

As an example’s of Unilever’s commitment to innovation, the company announced in May (22/05/2014):

Unilever launches global platform to engage with start-ups

London/Rotterdam – Unilever announced today the launch of The Unilever Foundry, a platform that will provide a single entry-point for innovative start-ups seeking to partner with Unilever.

The Unilever Foundry will enable the company’s global brands to experiment with and pilot new technologies more efficiently, effectively and speedily. It will also provide start-ups and entrepreneurs the opportunity to develop and work on global projects, access mentoring from marketing professionals, and tap into a new source of funding through Unilever Ventures.

Keith Weed, Unilever Chief Marketing and Communications Officer, explains “We strive to be at the forefront of marketing and media innovation; to have our brands engage in the most creative, efficient and effective ways with the people we serve. Although we have been working with start-ups for years, we now want to scale up our efforts and, ultimately, embed this as a way of working throughout our organisation.”

“The Unilever Foundry will be our single our platform to harness, nurture and evolve thousands of innovative ideas from the entrepreneurial community. It will simplify the way in which small start-ups and entrepreneurs engage with a company of our size, offering an exciting opportunity for the best and brightest to pilot their technology with us,” adds Marc Mathieu, Senior Vice President, Global Marketing. “Through The Unilever Foundry, we continue the Crafting Brands for Life journey to make our brands more human and more purposeful, while also empowering our marketers to pioneer the future.”

The Unilever Foundry offers three key opportunities for start-ups and entrepreneurs:

1. Marketing Mentors

Over a period of three months, Unilever mentors will work individually with start-ups and entrepreneurs to craft their brand vision, marketing strategy and product roadmap. Luis Di Como, Senior Vice President, Media,explains, “Through mentoring, we hope to contribute to the entrepreneurial ecosystem and build businesses who might eventually become our global strategic partners. Mentoring also enables our marketers across the organisation to engage directly with start-ups and be inspired by new ideas and ways of working.”

2. Projects

Through The Unilever Foundry Projects, Unilever brands and functional teams will post briefs where they are looking for innovative technology solutions. Companies with proven technology are invited to pitch their solution and, if selected, pilot their technology with Unilever. The pitch-to-pilot process enables Unilever to embed experimentation at the heart of the marketing function, allowing new technologies to be piloted and new partnerships to be cultivated.

3. Investment

The Unilever Foundry will also give companies the option to apply for funding through Unilever Ventures, the venture capital arm of Unilever. One of the investment focus areas for Unilever Ventures is ‘digital marketing’; and it has already made several successful investments in this space, including Brain Juicer, Yummly and Brandtone. “Through The Unilever Foundry, we hope to make more start-ups aware of this opportunity to receive investment from the world’s second largest advertiser. In combining our business and marketing knowledge with the expertise available in venture capital through The Unilever Foundry, we are in a position to provide the best of both worlds,” explains Olivier Garel, Head of Unilever Ventures.

“In an always-on, data-driven and connected world, innovative and forward-thinking technology companies will play a vital role in helping our brands continue to engage meaningfully with people everywhere. The Unilever Foundry will open a direct line of communication with all these companies, so we can work together and mutually benefit,” concludes Keith Weed.

Source: www.unilever.com

World’s first commercial airborne wind turbine

A new, floating wind turbine design could bring clean, renewable power to off-grid areas. Alumni of the Massachusetts Institute of Technology have launched a start-up called Altaeros which will develop the world’s first commercial airborne wind turbine. Their Buoyant Air Turbine, or B.A.T., uses a helium-filled shell – made of the same fabric used in blimps and sails – to hover around 1,000 to 2,000 feet above ground to capture the stronger, steadier winds available at that altitude. This report and photo from Ecoseed.org.

Ecoseed.org report: 25 May 2014

A new, floating wind turbine design could bring clean, renewable power to off-grid areas.

Alumni of the Massachusetts Institute of Technology, Ben Glass and Adam Rein, have launched a start-up called Altaeros which will develop the world’s first commercial airborne wind turbine.

Their Buoyant Air Turbine, or B.A.T., uses a helium-filled shell – made of the same fabric used in blimps and sails – to hover around 1,000 to 2,000 feet above ground to capture the stronger, steadier winds available at that altitude.

The B.A.T. can produce double the energy of similarly sized tower-mounted turbines. This is because, at the altitude that the B.A.T. hovers, the winds blow five to eight times stronger than winds at tower level (roughly 100 to 300 feet).

According to Mr. Rein, the B.A.T. is not designed to replace conventional tower-mounted turbines but, it will be able to bring wind power to areas where tower-mounted turbines are not practical or economically feasible.

“It’s really about expanding wind energy to all those places in the fringes where it doesn’t really work today, and expanding the amount of wind power that’s able to be deployed globally,” said Mr. Rein.

Conventional turbine construction requires tons of concrete and the use of cranes to erect the towers and mount the turbines. This can make deployment difficult in some areas. The B.A.T., on the other hand, can be deflated and packed into two midsized shipping containers for transport. Upon reaching the area, it can just be re-inflated at which point it will self-lift into the air.

When deployed, three tethers connect the B.A.T. to a rotating ground station, which automatically adjusts its altitude to obtain the strongest possible winds. Power generated travels down one of the tethers to the ground station before being passed along to microgrids.

The B.A.T. operates almost completely autonomously. It is equipped with anemometers which can detect optimal wind speeds and adjust the system and the altitude and direction at which the turbine floats accordingly. This also allows the B.A.T. to self-dock in case of an emergency such as weather getting to rough or if a tether breaks loose.

Target sites for B.A.T. deployment would include areas which currently depend on large diesel generators for powers. This would include military bases, industrial sites, island and rural communities. However, the B.A.T. could also help provide on the spot power for places such as amusement parks, festivals, and sporting event venues. In times of emergency, the B.A.T. could also be easily deployed to places that were cut off from the regular grid.

Next year, the B.A.T. is set to be deployed at a site south of Fairbanks, Alaska, as part of an 18-month trial funded by the Alaska Energy Authority. Currently, people in rural Alaska rely on gas or diesel generators for power and pay around $1 per kilowatt-hour for electricity. The B.A.T., which has a capacity of 30 kilowatts, aims to drop that cost to roughly 18 cents per kilowatt hour.

Source: www.ecoseed.org/technology/17563-floating-wind-turbine-captures-stronger-winds-for-more-clean-power