Commentary

In July the new Feed In Tariff (FIT) for renewable energy sources will come in effect. Under the new FIT, utilities are required to buy solar, wind, geothermal and hydro power at a fixed tariff and are allowed to pass on such cost to the consumers.

In spite of current market conditions in India, favourable project economics are set to support coal power as the default baseload capacity option with over $154 billion capex expected between 2012 and 2020

While China has been a world leader in developing renewable energy, it now appears that integration of renewable generation is presenting the country with a whole new range of technical that threaten to slow the torrid pace of growth not only in the China, but across the world.

My friends at Asian Power asked if I would do an article so I decided to do one on what I know best - Rotating Equipment Maintenance.

The first half of 2012 saw fossil fuel prices skyrocketed to new highs. Heavy Fuel Oil ( HFO ) cSt180 went up to a ceiling of USD800 per ton.

The National Energy Bureau (NEB) recently approved two offshore wind power projects with an aggregate capacity of 246 MW in Guangdong province in Southern China. The two projects are owned by China Southern Power Grid (CSG) and Guangdong Yudean Group, respectively.

In Asian Power market, “Middle East” is the largest economy having higher concentration of dual purpose power and water plants, mainly due to the requirement of desalinated water in this part of the world and secondly it is the economical way to produce drinking water.

We were all required to take science courses in school and one of the ones I signed up for was basic physics. In one lecture the professor explained temperature convection, and just in case you missed or dozed off during that one, that’s where a temperature difference in gases, liquids or solids will strive to equalize through convection. Today we are witnessing convection on a previously unprecedented global scale; the shift I’m referring to isn’t what you’d think, it’s not about climate change or temperature, but represents one of the greatest migrations of power and capital that the world has ever seen. Although the economy has put a bit of a damper on things of late the flow is still heavily eastern in direction. The “Power” I’m referring to is in the degree of increased world influence and electric generating capacity that’s lighting up whatever device you looking at right now. The Anglo-Spheres dependence on imports is a power and production vacuum that has been escalating for decades and one that the East has been willingly filling, putting millions to work in jobs and at wages that westerners “currently” refuse to accept. All this eastward migration or “convection” of capital and power is happening for one of two reasons; one as payments for the goods the west is importing, or two, by companies looking to get in on the boom to build infrastructure, factories and supply the goods craved by the west. This convection of wealth and power is a virtuous and maybe vicious circle that is expanding with each revolution. Each revolution of exports-payments-investments means boat loads of money and influence for the Sino-sphere and cash drainage for the Anglo-sphere. But what is missing and needed for the circle to continue to expand is power in the form of electricity and with all this inflowing cash and demand for increasing generating capacity you would think it’s a great time to be in the power business in Asia, wouldn’t you? From a demand standpoint the potential for power plant contracts couldn’t look brighter.

It’s no secret that the power installation market is heating up in Southeast Asia.

Despite the adoption of a new electricity law in 2009 liberating the Indonesian electricity market, most electricity generated in Indonesia is sold to PLN, the state-owned utility, under 25 or 30-year power purchase agreements (PPAs).

Every government is worried with the current cost of Renewable Energies since they are – in some cases – more expensive than conventional sources, but everyone also knows that electricity cost is increasing every year and the expectations is that it will double in the next decade.

In the Asian and global power industry, maintaining the efficiency of a compressed air system is a constant battle, with leaks being a considerable source of the problem.

To answer this question, we must understand what is behind the price and pollution.

Super grid is on the card now. Growing fashion of establishing interconnections is now serving a purpose, linking diversified resources of energy production and connecting remotely located options of renewable with the load centers which are far away from production points.

Industries all over the world are continually facing hurdles when it comes to recruiting and retaining qualified personnel. Besides the common challenges, the power industry has experienced additional setbacks related to an aging workforce and poor public perception.

One of the hottest topics amongst sponsors, contractors and financiers involved in Asia’s power sector today is the growing competition felt by all participants in the industry.