Page 11 - AsiaElec Week 20 2021

AsiaElec NEWS IN BRIEF AsiaElec

COAL FINANCING out mountaintop removal so far. has hit an impasse, as its proposed $0.068 per
Japan’s biggest banks are under pressure kWh tariff rate for the national grid exceeds
South Korea mulls from global investors and environmental what state-run energy supplier Electricite du
Cambodge (EdC) is willing to pay, according
groups over coal funding, and Mizuho’s
backpedaling from annual general meeting last year was the to a Ministry of Mines and Energy senior
first time a climate motion had been put to
official.
overseas coal financing shareholders of a listed company in Japan. and is the largest provider of renewable energy
The Blue Circle specialises in wind farms
Shareholders rejected the proposal.
freeze in Southeast Asia. The company currently
operates in many ASEAN countries, most
The South Korean government unveiled plans notably in Vietnam.
on Monday (17 May) to allow for potential MARKETS Victor Jona, the director-general of the
exceptions to the nation’s recent pledge to ministry’s General Department of Energy,
cease its controversial public support for coal- Power exchanges account told The Post on May 17 that the company has
fired power plants overseas, Eco-Business has been negotiating a power purchase agreement
learned. for half of short-term with EdC for “more than a year”, the last step
A press release published by the country’s before reaching a formal agreement to build
Ministry of Economy and Finance (MOEF) electricity market in India the wind power station on Bokor Mountain in
after a government meeting on international Kampot.
economic affairs reveals that new guidelines Power exchanges accounted for over half With electricity rates trimmed each year
on coal lending are in the making that could of the overall short-term electricity market since 2015 as per government policy, Jona
see South Korean public banks continue during FY21, according to an investor said EdC requires a price under the $0.068
backing specific coal ventures. presentation by Indian Energy Exchange per kWh quoted by the company to provide
Potential exemptions from the moratorium (IEX). This metric has steadily improved from consumers with more affordable electricity.
include retrofitting coal power plants already 30.2 per cent in FY16. “The Blue Circle has yet to begin
in operation, coal power projects that use A recent presentation by IEX observed construction, as the company is still waiting
carbon capture and storage (CCS) technology, that power exchanges accounted for 54 per for a successful price negotiation with
and additional transactions for ventures that cent of the total short-term electricity market Electricite du Cambodge,” he said, adding that
have already been approved. in FY21. This metric stood at 41.2 per cent in the firm will submit proposals and technical
FY20. There has been a steady increase in this specifications to the ministry for review to
proportion, over the years, as can be seen in start construction, depending on results of
the given table . talks with EdC.
COAL FINANCING The presentation further suggests that While Jona claims that the ministry
the share of energy exchanges in India’s total “strongly supports” renewable and other
Japan’s Mizuho to stop electricity consumption was around 6 per green energy projects, he stressed that, in the
cent. This figure was based on the period from
interest of consumers, it also insists on low-
financing coal mining as January 1, 2021 to around May 12, 2021. This cost and stable sources of electricity.
share of 6 per cent was far below what is being
He said two companies have been eyeing
calls for emission cuts rise seen in developed countries, indicating that wind power projects in the Kingdom, but
neither has broken ground on wind turbines
there was tremendous potential for energy
Mizuho Financial Group Inc (8411.T), exchanges to penetrate further into the short- or associated infrastructure.
Japan’s third largest bank by assets, said term electricity trade market. On average, in Xinglan Maritime Energy Co Ltd (XME),
on Thursday it would stop financing new developed nations the aforementioned share a joint venture between the local Maritime
thermal coal mining projects from June 1, as of energy exchanges is in the range 30-80 per Group and a Chinese company, is working
global investors and environmental groups cent. For instance, in UK, it is 47 per cent on a $200mn 100MW onshore wind power
urge banks to unload coal-related exposure, while it is as high as 91 per cent in Nordpool, project in Mondulkiri province.
Reuters reprroted. which is the power exchange for Nordic and Maritime Group chief operating officer
The move comes after Prime Minister Baltic countries. Kong Vara previously told The Post that the
Yoshihide Suga announced last month that The share of short-term market trading joint technical team – comprising local and
the country aims to nearly double its target in India’s overall consumption stood 11.2 Chinese experts – has been working closely
for cutting carbon emissions, leading to rival per cent in FY21. Over the past 5-6 years, with relevant institutions in their research and
banks tightening their lending policy in coal. for which data is available in the IEX to ensure that they meet technical standards
read more presentation, this share has remained in the and requirements.
While Mizuho had previously said it would 9-11 per cent range.
not lend funds for ‘mountaintop removal’, a
technique that involves using explosives to
expose coal seams, it is haulting financing any RENEWABLES
project for thermal coal mining, according to WIND
its updated policy. The bank didn’t mention IEEFA: Vietnam’s PDP8
metallurgical coal. 80MW wind farm project in
Mizuho is the first major Japanese lender delay is an opportunity to
to make such a pledge, while bigger rivals Kampot hits EdC price snag
Mitsubishi UFJ Financial Group Inc (MUFG) unlock more cost-effective
(8306.T) and Sumitomo Mitsui Financial French-owned The Blue Circle’s 80MW wind
Group Inc (SMFG) (8316.T) have only ruled power investment project in Kampot province

Week 20 19•May•2021 www. NEWSBASE .com P11