Commentary

Nearing the one year anniversary (March 11, 2011) of the historic Tohoku earthquake (M9.0), subsequent tsunami (~14-15m waves), and unfortunately, the ongoing consequences of the ‘Fukushima nuclear power plant (NPP) accident’, allow me to take this opportunity to reflect upon the significance and relevance of this tragic loss-of-life and the importance of energy for economic development and the human condition in Asia-Pacific (AP).

Recent trends within the PV industry have seen a massive increase in the number of module manufacturers within the Asian region. This will set the scene for the next few years where we can expect to see a move away from small roof-top PV systems to the deployment of large-scale commercial and industrial arrays. Historically, in most countries, such as Australia, the roll-out of PV has been dominated by domestic roof-top installations. For a country that has one of the greater levels of solar insolation, the deployment of solar as an energy source is small by world standards. Currently the largest PV flat-panel array is only 1.22MW located in Brisbane at The University of Queensland (UQ), which was designed primarily for research purposes. Whilst the Government has committed support for two large-scale projects and a number of other larger arrays are planned, most are still relatively small compared to those already established within Europe.

Nazery Khalid assesses efforts in the shipping sector to go green

The cost of solar usually comes as the barrier for a larger solar deployment. Fit and PPA driven by RPS have lead the path for the revolution in Renewable Energies leading wind to achieve more than 100 GW and PV more than 20 GW.

With intellections to reduce dependence on hydrocarbons and concerns over environments, Asian Power industry is currently demanding more green solutions to produce power.

World attention was recently focused on the climate change negotiations held during the United Nations Climate Change Conference in Durban, South Africa.

India’s Jawaharlal Nehru National Solar Mission is bound to achieve 20 GW until 2022. India has some KW of installed solar power until the kick start of the Mission in 2010. India is one of the two countries in the world with more than one billion and is also home to many persons without electricity. But we are not talking about off-grid applications, we are talking about on-grid and with Fit. India learnt the lesson of Fit and RPS driven PPA and created their own scheme: RPO – Renewable Purchase Obligation – with a reverse bidding to determine the Fit.

In July 2011 Asian Power posted an article I wrote on the new paradigm for utility information security where you should assume your information systems can be breached and react accordingly. In this article I’d like to extend some added ideas for energy and utility executives to consider when trying to secure their information systems.

The China Photovoltaic Industry Alliance (CPIA) is finalizing a complaint alleging that U.S. manufacturers are dumping polysilicon at below cost prices in China. The petition will ask the ministry of commerce to open a dumping and subsidy investigation into the sales of U.S. polysilicon in China. The move is a response to the U.S. anti-dumping investigation into the export practices of Chinese solar cell and module manufacturers. The CPIA includes major Chinese solar players like GCL-Poly, Suntech, LDK Solar, Yingli, and Trina. It should be noted, however, that Suntech said it is not involved in the action. In addition to the anti-dumping complaint, the CPIA will be preparing a petition urging the Ministry to look into subsidies allegedly received by U.S. manufacturers.

A few years ago, while working on a power sector roadmap, a conversation turned to the perceived problems created by a lack of a comprehensive energy sector policy. Surely power sector planning would be better, my friend suggested, with a clearer policy in place to guide the substantial investment decisions required to meet growth reliably and efficiently. In this time of resolution-making for the year just begun, what would a good energy policy look like?

For many people the word “Mindanao” conjures up pictures of beaches, terrorists, or more recently, terrible flooding and loss of life. With over a thousand people dead from Typhoon Sendong, it’s hard to believe there is good news in Mindanao. But for those interested in power generation, there is much more going on in this southern island of the Philippines.

The high capital costs associated with solar power mean that it has been prohibitively expensive for many countries in Asia Pacific which, ironically, dispose of greater insolation levels than well-developed solar power markets such as Germany.

Good Bye Kyoto: This month, the Japanese Ministry of Environment announced that greenhouse gas emissions in Japan had increased in the year to 2010, reflecting the continued recovery of its economy. Further, Japan stated at the recently concluded UN conference on climate change in Durban that it would not go along with continuing the Kyoto Protocol’s system of cap and trade for greenhouse gas emissions but also said at the same time that it would continue efforts to reduce such emissions all means. So is it backtracking by Japan or is Japan “walking the talk” albeit in a different path?

The demand for energy, especially in Asia, is growing faster than in many developed regions of the world. Traditionally, power generation has relied on fossil fuels and hydroelectric applications. Nuclear energy, which also has developed over the last 50 years, is being introduced in new regions of the world while being phased out of others. All of these types of power plants are generally larger in scale, producing hundreds of megawatts. Traditionally, the main drivers for larger power plants have been higher efficiency and lower installation costs, but the way power projects are evaluated is becoming increasingly complex. With both “flexibility” and the integration of renewable energy becoming increasingly important, more efficient natural gas-fired distributed power applications are growing in popularity.

Whilst the growth of natural gas usage for industrial and power generation purposes is developing swiftly across Asia no country is investing as much money and effort into building their natural gas infrastructure as China is currently doing. Not only is the country developing long distance west to east gas pipelines to import the gas from neighboring countries it is also investing heavily into its exploring for domestic energy resources for the clean fuel which is already in big demand. In addition to these significant steps being taken to supply demand across the country there are now many Liquefied Natural Gas (LNG) receiving terminals coming online to receive large shipments of the cleaner fuel from overseas suppliers.

“The future ain’t what it used to be!” (seen on a bumper sticker) Climate change is the only constant The need to address the issue of climate change has become a matter of priority, and players in the shipping industry must stand up and be counted to play their part to reduce carbon emissions. Being a crucial facilitator of trade and at the forefront of activities such as offshore oil and gas exploration and production, shipping is omnipresent and hence commands international attention. Expectations are therefore high for the industry players and regulatory authorities to take urgent, meaningful action to introduce eco-friendly practices in shipping. One way or another, industry players must prepare themselves for a lower carbon future, and that future is looming in the horizon. Delaying actions - or worse, not taking any action – is simply not an option. There is growing pressure for transport operators, including in shipping, to take serious actions to mitigate the risks of climate change. Signs are all around that the world is under serious pressure from a scorned Mother Nature whose delicate balance has been upset by the ravages of climate change. Raging bushfire in Russia, fatal floods in Pakistan, tragic mudslides in China and the separation of a 60 sq km chunk of ice from a glacier in Greenland are just some reminders of the terrible impacts of climate change. The failure of the United Nations Conference of Parties on Climate Change (COP 15) held in Copenhagen in December 2009 to reach a consensus to advance the agenda is a wake-up call for industries, including the transport sector, to act quickly to reverse the adverse impacts of climate change on the environment. Pressure is growing for world leaders to come up with a concrete plan at the COP 16 meeting in Cancun, Mexico in late 2010 to reverse the ill effects of climate change. All eyes are on COP 17 in Durban, South Africa to make advances on this most important agenda. A December 2009 report published by Lloyd’s List stated that despite shipping contributing a mere 3.3% of the global total of carbon emissions from economic activities, emissions from shipping were estimated to have doubled since 1990. The report projected that this percentage would grow by a factor of two to three by 2050 from 2007 levels should no regulatory measures were put in place to lower the emissions from shipping. Pulling up shipping’s weight This should make industry players sit up and take note of the dire prospect, and not become complacent and ‘lulled’ by the fact that shipping contributed only a small percentage to the total global carbon emissions. Industries must rally behind the commitment of governments to reduce carbon emissions and contribute towards fulfilling that objective. The shipping industry especially must make the issue of reducing carbon footprint as a priority and must aim to put in place strategic measures to reduce or limit the volume of carbon emitted from their operations. While admirable efforts had been initiated and were being planned by the International Maritime Organisation (IMO) to lead the way in reducing carbon footprint in the shipping industry, many issues and challenges must be addressed and overcome for the shipping industry to cut down its carbon emissions in a systematic and meaningful way. What is urgently needed is for IMO to put in place a globally accepted regime to curb carbon emissions. A national or regional regime based on a piecemeal approach would not do, given the global nature of shipping. The intensity of opposition towards reduce carbon emissions in shipping could be seen in proposals such as applying the Common But Differentiated Responsibilities among maritime nations and introducing market-based instruments. Other issues include the lack of financial resources, the need to develop adequate and skilled manpower, overcoming technological challenges, high cost of compliance, lack of enforcement, and that challenge of balancing ‘going green’ with business imperatives. IMO’s Greenhouse Gas Study updated in 2009 reported that the application of ‘known technology and practices’ could make vessels more efficient between 25 to 75%, depending on the types of vessels. However, adapting such technology and practices may give rise to other issues. In the event that shipowners pass the costs incurred from ‘going green’ onto their customers, the latter will in turn pass their costs down to end users and consumers of the cargo they ship. Given the considerable costs involved in practicing ‘green shipping’, there may not be much of an incentive for shipowners to increase efficiency of their ships to a level that will make a difference on a global scale. Unless they can gain competitive advantage by ‘going green’, or at least can avoid competitive disadvantage, it is hard to imagine that shipowners are going to adopt a voluntary technological revolution to change the entire shipping industry to a greener one. What more at a time when many of them are reeling from the crushing impact of global recession, credit crunch and falling demand for shipping services. These issues and fears need to be exhaustively debated and addressed before a consensual approach to address climate change can be attained by shipping industry players. While it is encouraging to note the growing awareness among stakeholders in the sector of the need for them to reduce carbon outputs, there is also a need to anticipate the effects of adapting measures to mitigate the risk of climate change. This calls for nuanced measures and policy options leading to implementable, practical and effective solutions to reduce carbon emissions in the shipping sector, while meeting the need for smooth and efficient flow of trade along the maritime supply chain.