Page 7 - AsiaElec Week 07

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Chinese aim for 840MW of hydro in Uganda
CHINA
CHINESE interests have applied for a licence to build a $1.4bn hydropower plant (HPP) in Uganda.
The 840-MW Ayago HPP would be the larg- est in the country and extend current capacity by 40%, Reuters reported.
POWERCHINA International Group Ltd (PIGL) aims to build the Ayago HPP on the River Nile between Lakes Kyoga and Albert.
The plans would be located downstream from the 600-MW Karuma dam, which is currently being built by China’s Synohydro and is due for completion in 2020. Uganda regulators said that they would issue a decision on the licence in April. PIGL said in its submission that it would fund the 840-MW plant through a 25%:75% mixture of equity and debt.
Uganda has been trying to increase private investment in energy, and has committed to loans from China and other sources to help boost power production to meet fast-growing demand.
The government has abolished subsidies and introduced a tariff-setting system that is bench- marked on movements in key parameters such as inflation, foreign exchange and oil prices.
Meanwhile, Uganda is one of a number of
African countries increasing their exposure to Chinese investment.
A recent study from the International Energy Agency (IEA) forecasts that Chinese construc- tion companies would add 9 GW to African power capacity between 2014 and 2024, of which 4.5 GW are currently still being built.
Of this, 5,764 MW will be hydro, 811 MW coal, 988 MW gas and 370 MW oil. Just 1,178 MW will be renewables.
Zambia is using Chinese building contractors to construct the most capacity between 2014 and 2024, followed by Nigeria, Angola, Uganda and Côte d’Ivoire. These five make up roughly half of the IEA’s total of 9 GW.
Hydro is a major Chinese business. Zambia’s 750-MW Kafue Gorge project is set to be com- pleted in 2020, while the Chinese are building the 2,160-MW Cacula dam in Angola and the 3,048- MW Mambila dam in Nigeria.
In Uganda, China is also financing transport projects such as the expansion of Entebbe Inter- national Airport. Uganda is also seeking funding for the construction of a standard gauge railway to link the landlocked country to the Kenyan sea- port of Mombasa.™
STORAGE
Shell signs offtake deal for UK’s Chinese-built battery project
CHINA
THE Chinese-backed Minety battery storage project in the UK has signed up Royal Dutch Shell’s energy technology subsidiary as offtaker in a multi-year deal.
The 100-MW facility is owned and being built by state utility firm China Huaneng Group and China’s sovereign wealth fund CNIC.
The deal gives Shell access to 100 MW of battery power, which can act as an emergency energy source, often called a virtual power plant, during times of sudden spikes in demand, when prices are high.
China Huaneng began construction at the Minety site on December 5, 2019, with 80% of the equipment manufactured in China. The bat- teries use LiFePO/ternary lithium technology.
The project is the largest battery installation in Europe and is set to be opened at the end of 2020. China Huaneng said that the project formed part of Beijing’s Belt and Road Initiative (BRI) to promote Chinese investment and tech- nology worldwide.
Energy storage increases the amount of renewable energy available at times of lower
solar and wind output.
“Projects like this will be vital for balancing
the UK’s electricity demand and supply as wind and solar power play bigger roles in powering our lives,” said Shell Energy Europe vice-presi- dent David Wells. “Batteries are uniquely suited to optimising power supplies as the UK moves towards a net-zero carbon system.”
The schemed comprises two 50-MW batter- ies with the capacity to store 100 MWh of elec- tricity, enough to power 10,000 UK homes for aday.
Shell subsidiary Limejump, which was acquired in 2019, is to manage the assets. The company operates a virtual power plant, which gives it access 1 GW of flexible capacity, which pools renewable output, storage capacity and demand response.
Shell’s deal is the latest in its bid to become a green power supplier. having already bought German battery company Sonnen, UK power and broadband provider First Utility - since renamed Shell Energy - and electric vehicle charge point firm New Motion.™
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