Page 14 - AsiaElec Week 32 2021

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NEWS IN BRIEF
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power projects—which form 45 percent of its current power generation portfolio—and channel more funds to renewable energy projects moving forward.
BPI, which is celebrating its 170th anniversary this year, has identified sustainability among its four key priorities under its new president, Teodoro Limcaoco, along with digitalisation, customer services and consumer banking.
In a press briefing on Monday, Limcaoco said while BPI’s original commitment was to halve coal financing by 2026 and go down to zero by 2037, in line with the Paris accord to decarbonise, it was possible to totally phase out all remaining coal lending by 2033.
“We believe energy is still an important component, a big need of this country. My belief is renewable power is getting cheaper and cheaper to produce, is getting more economically feasible and I think storage technology will improve very rapidly,” he said.
In a couple of years, Limcaoco said wind and solar could become baseload power sources, or the plants that could generate a minimum amount of electric power needed by the grid at any given time.
“We are looking to finance renewable power moving forward because that’s what the country needs,” Limcaoco said.
To date, renewables account for 45 percent of BPI’s power generation loan portfolio, same as the proportion devoted to coal. The remaining 10 percent is devoted to gas-fired projects.
The country still relies on coal for 58 percent of its energy needs, while renewables account for 21 percent, same as the ratio
for gas, which is still seen necessary during the world’s transition to a “net zero” carbon future.
EMISSIONS
Steel emissions must fall 75%, says WoodMac
Carbon emissions in the steel sector must
fall by 75% from today’s levels to limit global warming to within 2 degree Celsius (°C), said Wood Mackenzie.
This means reducing global steel emissions from over 3,000mn tonnes of carbon dioxide equivalent in 2020 to just 780mn tonnes by 2050.
Wood Mackenzie senior analyst Mihir Vora said: “This is an extremely challenging target to meet. The steel industry would need to find the right balance between managing rising demand and pressure to decarbonise.
The pathway to a 2°C world is filled with obstacles compared to our base case view.” Steel demand is expected to rise 23% to
2,300mn tonnes between 2020 and 2050. Developing economies such as India, Southeast Asia and South America are expected to drive demand growth, while China and Europe would pare down their consumption.
Vora said: “Currently, steel is responsible for 7% of global CO2 emissions. The industry needs to prioritise decarbonisation if the world is going to achieve a 2°C warming pathway aligned to the goals of the Paris climate agreement.
“Advanced economies will need to do more to curb emissions via innovative new steelmaking pathways such as hydrogen
use, while developing nations will be slow adopters and small contributors to emissions reduction.”
Wood Mackenzie has outlined five main outcomes that would need to be achieved
for the steel sector to achieve a 2°C warming pathway. They include (1) doubling scrap use in steel making; (2) tripling direct reduced iron (DRI) production and use; (3) reducing global average electric arc furnace (EAF) emissions intensity by 70%; (4) reducing blast furnace – basic oxygen furnace (BF- BOF) emissions intensity by 30%, close to its theoretical minimum; and (5) capturing and storing 45% of the residual carbon emissions (around 500mn tonnes per annum).
Aligning to a challenging 2°C warming pathway in the steel industry would mean disruption to the iron ore and metallurgical coal markets. It would, however, be a boon for hydrogen demand in steelmaking as well as carbon capture and storage.
WOOD MACKENZIE
TRADING
Thailand’s EGAT to import more electricity from Laos
State-run Electricity Generating Authority
of Thailand (EGAT) plans to import an additional 1,200 megawatts of electricity from hydroelectric power plants in Laos under a long-term purchase contract.
EGAT earlier signed a memorandum of understanding with the Lao Ministry of Energy and Mines (MEM) to buy a total of 9,000MW, the Bangkok Post reported.
EGAT’s current power supply stands at 10,200MW, said Jiraporn Sirikum, deputy governor of EGAT.
Eight power plants in Laos with a combined power generation capacity of 5,420MW are committed to exporting electricity to EGAT.
Seven of them -- with a capacity of 3,947MW -- are hydroelectric power plants, while the other is a 1,473MW coal-fired power plant.
Laos is also building Nam Theun 1 hydroelectric power plant with a capacity of 514MW. It is scheduled to start operating next year.
The 2018 national power development plan (first revision) states broadly that Thailand needs to import electricity from neighbouring countries, without specifying the countries or power generation projects.
Permanent energy secretary Kulit Sombatsiri said Thailand plans to import hydropower from Myanmar, but the neighbouring country’s severe political conflict has delayed the plan.
The import of more power from “clean” resources is in line with the government plan to decrease its dependence on electricity generated by fossil fuels.
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Week 32 11•August•2021