Powerlines, Issue 24
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Issue 24 : August 2013 Powerlines News and industry comment from Parsons Brinckerhoff around the globe Planning for a brighter future Plans to increase access to electricity in Kenya Plus Private power expansion in Thailand End of an era in St Lucia Full steam ahead in the Philippines Securing geothermal power for the future A royal honour Onwards and upwards Belgrade bound Pupil power in Kenya A strong alliance Delivering power in remote Australia Powerlines Issue 24 : August 2013 Planning for a brighter future Contact: Mark Fraser ([email protected]) Access to electricity provides huge benefits for individuals and communities, raising standards of living and providing a catalyst for economic growth. Electricity facilitates the use of computers in schools and machinery in industry; electric lighting in homes allows students to study in the evenings without the health risks posed by kerosene lamps. Electricity is a scarce resource in many African countries, with many of the areas currently The supplied with electricity suffering from poor levels of reliability and quality of supply. Only around counterpart 25 percent of Kenyans currently enjoy access to team was electricity; 50 percent in urban areas and just five percent in rural areas. The Kenyan pivotal during government aims to increase this access to 98 percent in urban areas and 58 percent in rural the data- areas by 2030. gathering Major investments are being made in the stage and generation and bulk transmission of electricity, but for benefits to be realised, similar levels of provided investment are required in the distribution of electricity. This investment must be carefully invaluable planned to ensure that scarce resources are local used efficiently. knowledge To this end, in December 2011, Parsons Brinckerhoff was appointed by The Kenya Power during the & Lighting Company Limited (KPLC) to conduct a • Environmental scoping studies for the identified in Nairobi. The work was well received and there development study to determine the country’s future electricity projects. This aspect of the assignment was a real appreciation for the effort that had gone distribution infrastructure requirements – the Only around included visiting each of the 47 counties across into producing this critical blueprint for future of the Kenya Distribution Masterplan Study. the country to hold meetings with stakeholders development. Since the presentation, KPLC has 25 percent and to understand the key issues associated asked for further training in specific areas and expansion The study sets out the least-cost approach and of Kenyans with electricity infrastructure projects at a local for ongoing assistance towards implementation. plans demonstrates compliance with environmental level. Consultants heard from chiefs and village The study has also attracted interest from a standards. It is an essential step towards activities. An important factor leading to the currently elders about the issues they face and translated funding agency that wishes to work with Parsons securing project finance from whatever source. successful execution of the masterplan study was these into viable engineering solutions. Brinckerhoff and KPLC towards securing a finance the appointment by KPLC of a dedicated team enjoy access package for the masterplan. In addition to producing a blueprint for the of engineers from within its own organisation to to electricity; • Production of a Design Manual covering design development of the country’s electricity assist with the Masterplan Study. This counterpart principles for the key elements of equipment, to Parsons Brinckerhoff already has a firm presence distribution network up to 2030, the masterplan team was pivotal during the data-gathering stage 50 percent in assist KPLC with the day-to-day development of in the electricity sector in Kenya through its will also serve to facilitate project funding from and provided invaluable local knowledge during the network. involvement in projects ranging from feasibility the Kenyan government’s own resources the development of the expansion plans. urban areas studies for several new transmission lines to and through multilateral and bilateral funding The assignment included an intensive three-week contract supervision for the construction of two agencies. Key outputs from the study included: and just five training course in the UK for the KPLC counterpart new lines including a 400 kV line from Mombasa to percent in team, given by Parsons Brinckerhoff. This covered Nairobi, the first of its kind in Kenya. The company Parsons Brinckerhoff drew together its team • Identification and prioritisation of specific most of the key aspects of the study and included was proud to continue its association with the of experienced engineers, economists and projects that would realise benefits in terms of rural areas hands-on training in the use of the network country via the masterplan project, helping to environmentalists, and associated with a local increasing access to electricity or improving the planning software. secure a vital resource to improve the lives of partner to assist with some of the in-country reliability and quality of existing supplies. millions of Kenyans. The completed study was presented to the client in December 2012 via a seminar and workshop Powerlines Issue 24 : August 2013 Private power expansion in Thailand Contact: Steve Merrill ([email protected]) Additions to Thailand’s generating capacity generally The key features of the three PPA types are: follow the requirements of the Thailand Power Development Plan (PDP) that is issued periodically by the Ministry of Energy. The PDP usually reflects the forecasted power Since the introduction in the early 1990s of demand increase, which itself follows the expected regulations to facilitate private participation in rise in gross domestic product (expected to power generation in Thailand, access to the be around 4% per year) whilst considering market has been expanded. There are now three government policy requirements. These schemes under which private developers can requirements include a minimum reserve margin obtain Power Purchase Agreements (PPAs) for of around 15% of peak demand; a target of power plants: 25% of capacity to use renewable technology by 2030; fuel-diversification requirements to reduce • the Independent Power Producer (IPP) dependence on gas; an energy-saving policy; programme for utility-scale plant built in and limits on foreign power purchase (currently set response to solicitations issued by the relevant to 15% maximum). government agencies • the Small Power Producer (SPP) programme for Thailand’s current installed generating capacity power plant selling up to 90 MW is just over 32,000 MW. There are plans to add a • the Very Small Power Producer (VSPP) further 55,000 MW by 2030, providing significant programme for renewable energy projects up to opportunities for the involvement of private power 10 MW developers. Thailand’s private power programmes are considered by many industry observers to be GHECO-One IPP a model implementation of private participation There are plans in what historically has been a government- monopolised market sector. to add a further 55,000 MW Private developers continue to show high levels of interest, encouraged by the use of standardised by 2030, bankable Power Purchase Agreements and Gas Supply Agreements. providing Another positive feature is the business significant environment in Thailand, ranked 18 out of 195 opportunities countries reviewed by the World Bank in a 2012 study of ease of doing business. Amongst other for the factors, the study considered enforceability of Parsons Brinckerhoff is currently involved in all contracts, and this element is enhanced by the three private power schemes in Thailand. We involvement of creditworthiness and payment record of the power have been appointed as the lender’s technical private power purchaser – the Electricity Generating Authority of adviser for a 9.8 MW waste-to-energy VSPP project Thailand. in Bangkok; owner’s engineer for the construction developers of the GHECO-One coal-fired supercritical IPP Power projects also attract Board of Investment that achieved commercial operation in 2012; and privileges including tax and duty free import of lender’s technical adviser for a 2 x 100 MW CCGT equipment and post-COD tax ‘holidays’. cogeneration plant SPP project in Ratchaburi. Powerlines Issue 24 : August 2013 End of an era in St Lucia Full steam ahead Contact: Neil Mant ([email protected]) Contact: Lindsay Robertson ([email protected]) For over two decades, Parsons Brinckerhoff engineers have worked with their client, LUCELEC, to ensure reliable power generation for the inhabitants of St Lucia. The installation of the tenth diesel generator at Cul de Sac power station – commissioned and handed over at the end of 2012 – marks the conclusion of development at the site. It was back in the mid-1980s that our engineers investigated potential sites for a power station on As the station this beautiful Caribbean island. Work commenced on the recommended site in the Cul de Sac valley, had been south of the capital, Castries. By the end of the designed to decade, a new diesel-fuelled power plant had been built and commissioned, providing 19 MW of A unique project to relocate a geothermal power station allow new additional power. This represented a major step forward for St Lucia, replacing aged, unreliable to enable it to run at planned capacity will provide generators