Wednesday, March 28, 2018

Solar energy solutions eyed for small buildings


March 28, 2018 | 12:14 am By Victor V. Saulon, Sub-Editor

A NONPROFIT organization has teamed up with a Dutch solar company and a German development institution to promote access to solar energy solutions for small buildings in the Philippines.
Karthik Subburaman, regional director of Asia Society for Social Improvement and Sustainable Transformation (ASSIST), said his organization’s partnership with Deutsche Investitions-und Entwicklungsgesellschaft, or KfW, and SolarNRG Netherlands seeks to pilot projects in Metro Manila, which could be replicated elsewhere in the Philippines.
“Our interest is to drive and promote sustainable development in the region. So we are committed to several sectors,” he said. “Renewable energy is one of them.”
The partnership, called accessRE, targets small and medium-sized buildings by helping them adopt sustainable power systems, such as solar panel installations. Its objective is two-pronged: provide solar installations to relevant small institutions, and develop skills for future solar energy technicians.
KfW, the other partner, is co-financing the project. The German development institution provides grants for projects with “good concepts,” Mr. Subburaman said.
“What ASSIST did was to conceptualize the idea. Along with the private partner, SolarNRG, [we] submitted a proposal to KfW and KfW decided to fund it,” he said. “So the project is partly funded by KfW [and] partly funded by SolarNRG.”
The project’s target installation within its 18-month duration is a maximum of 100 kilowatts. It estimates small-scale solar power solutions, with capacities ranging from 1 kilowatt-peak (kWp) to 5 kWp, to save about P1,500 to P7,500 a month.
These systems’ return on investment is expected within four to six years, while having an average lifespan of 25 years, making them cost-efficient and effective in mitigating losses from the limited availability of energy.
“They also start to reduce their impact on the environment in terms of greenhouse gas emissions,” he said.
Mr. Subburaman said his team would screen applicants for the project, although schools and universities have an advantage.
“The criteria is, number one, it has to be a small enterprise. So it cannot be a large enterprise,” he said, adding that these entities should have a requirement of no more than 50 kW or a consumption of about P50,000-100,000 of electricity a month.
“The second is, what is the relevance of the institution to the public or the community. In that sense, if it’s a small company that provides employment to the people of the community, if it’s a hospital, if it’s a school, they get preference,” he said.
Aside from the solar installations, the project aims to develop a customized training module for electricians, Mr. Subburaman said.
“They get skilled as a solar technician, so they will be able to do solar panel installations as well as maintenance,” he said.
“By doing this training module, making it available in one or two public schools [and] vocational schools, it becomes accessible to anyone. We will not charge them for the training during the project duration,” he said.
Mr. Subburaman said there is a “high chance” that the project will be replicated outside Metro Manila.
“It’s a matter of how soon, that’s the question. It’s not about whether it will happen. It’s about how fast we will be able to replicate it,” he said.
“If it’s the same donor, we have to finish this project before we can get another grant to do it. If we are working with other donors, then it’s possible that we can start earlier,” he added.

Basic Energy raises investment in 2 Thai firms


March 28, 2018 | 12:03 am

BASIC ENERGY Corp. on Tuesday said its board of directors gave the go-signal to increase the company’s equity investment in two Thai companies to 15%.
“The equity investment will enhance the project portfolio of [Basic Energy] as a renewable energy and power company,” the listed firm told the stock exchange on Tuesday.
The company is increasing its holdings of the total capital of Vintage EPC Co. Ltd. (Thailand) (VEPC), and VTE International Construction Co. Ltd. (Thailand) (Vinter). The move was approved by its board on March 21.
Basic Energy placed the value of its investment at 106.185 million Thai baht or around P178 million. The amount is broken down as 75 million baht for VEPC, and 31.185 million baht for Vinter. It will increase their working capital and will lessen the need for advances from stakeholders or bank financing.
“The investment is expected to provide a continuing stream of revenues in the short and midterms,” Basic Energy said.
The increase is a follow through of the investment term sheet signed by the company on Nov. 9, 2017 with Vintage Engineering Public Co. Ltd. for a possible equity investment in its two Thai subsidiaries up to 12.5%, with an option to increase up to 20% of their total equity.
The companies that Basic Energy bought into are the primary engineering, procurement and construction (EPC) contractors of the 220-megawatt (MW) solar power plant located in Minbu District, Magway region, Myanmar.
The deal is subject to the compliance with certain precedent conditions resulting from the due diligence work on the investee companies and the approvals of their board of directors.
It is also subject to the mutual agreement of the parties on the provisions of the share purchase agreement and shareholders agreement to include directorship positions and minority rights provisions, among others. The agreements also rest on the final board approvals by Basic Energy and the investee companies.
The share purchase agreement is targeted to be executed within April, while the shareholders agreement is expected to be completed in April or May.
Basic Energy described VEPC as the supplier of the materials and equipment for the construction of the Myanmar solar power project, while Vinter handles the construction services required to build and complete the power plant.
“The development of the project commenced in 2016 and the power plant will be constructed in four phases, Phase 1 of which is targeted to be completed by end of 2018. Completion of all 4 phases of the project is targeted on or before 2021,” the company said. — Victor V. Saulon

DoE devolves bureau functions to regions

March 27, 2018 | 9:42 pm

The Department of Energy said there is a need to devolve its functions to the field offices “to optimize its operations and in order to synchronize and to eliminate redundant functions.”
THE Department of Energy (DoE) said it devolved the functions of the bureaus in the central office to its three field offices in Luzon, the Visayas and Mindanao.
It called the reorganization an “institutional strengthening” to decentralize the implementation of its policies, plans, programs and regulations.
The DoE’s Department Order No. DO2018-03-004 has listed seven general functions of the department’s bureaus and service units to be exercised by the three field offices in their respective jurisdictions, including the conduct of regional-based monitoring activities, evaluations, surveys, profiling, site visits or inspections, and spot checks.
The DoE said there is a need to devolve its functions to the field offices “to optimize its operations and in order to synchronize and to eliminate redundant functions.”
In its order, the DoE also devolved the specific functions of the following bureaus: Energy Resource Development Bureau, Energy Utilization Management Bureau, Electric Power Industry Management Bureau, Oil Industry Management Bureau, Energy Policy and Planning Bureau, and Renewable Energy Management Bureau.
For energy resource development, for instance, the field offices have been given the authority to accept, evaluate and act on applications involving small-scale coal mining permits, mine safety inspector and mine safety engineer permits; and to cancel or terminate such permits for cause.
The field offices are also to inspect, evaluate and monitor small-scale coal mining operations, as well as investigate and validate illegal coal mining activities.
They are also authorized to accept, evaluate and act on applications for the issuance of coal trader permits and coal end-user registrations, and monitor their reportorial compliance pursuant to existing DoE circulars.
The bureau covering electric power management has devolved to the field offices its specific functions, such as the monitoring of plants, site visits for new power plants or those undergoing construction or expansion.
In case of an emergency such as forced outage, calamity, fire and sudden breakdown, the field offices are also mandated to perform the functions of the Manila-based bureau.
The field offices are also authorized to conduct performance audits or the audit of the actual capacity of power generation plants, transmission and distribution facilities.
The DoE undersecretary or assistant secretary in charge of the field offices are to oversee “the efficiency and effectivity of the performance of the general and specific functions” enumerated in the department order.
Also this month, the DoE issued an order, DO2018-03-0003, that created a centralized review and evaluation committee for the integration of the current committees administering the review and evaluation of renewable energy, petroleum, downstream natural gas, and coal service contract applications, as well as the award, amendment and termination of contracts.
The centralized review and evaluation committee is to be headed by Undersecretary Donato D. Marcos as chairman, with Assistant Secretary Caron Aicitel E. Lascano as vice-chairman. The members of the committee are assistant secretaries Redentor E. Delola, Leonido C. Pulido III and Gerardo D. Erguiza, Jr. — Victor V. Saulon