|
Financing Small Power Project in ASEAN Countries
CD is currently promoting small power
project in ASEAN countries. There is a big expansion in demand
for power from New & Renewable Energy in ASEAN and greater
interest in bio-diesel and clean fuels for vehicles. CD is also
promoting use of EU equipment suppliers and Export Credit
facilities.
The need for Small Power Stations
up to 10 MWE is expanding in Indonesia and ASEAN. The
main emphasis is on New & Renewable Energy including
mini hydro; biomass based cogeneration systems;
plantation and municipal waste ; wind power and solar
power. The programme also includes clean coal,
bio-diesel power plants; diesel to gas conversions and
clean energy hybrids.
The Pilot Small Power Project (SPP) was
started in Indonesia in co-operation with EU
suppliers and Export Credit agencies in the Czech
Republic and Spain. The idea is to replicate this Pilot
Project in the less developed Greater Mekong Sub Region,
and other parts of Asia and Africa, especially in rural
areas.
The main Project Partner is the ASEAN
Centre for Energy (ACE) based in Jakarta. ACE
coordinates regional energy policy meetings for ASEAN
Ministers of Energy, and Senior Officers Energy. It
promotes operational Research and Development and helps
advise on and run financing mechanisms such as the EU-ASEAN
Energy Facility (EAEF).
We want to help finance and start up
Small Power Station developments mostly in rural
areas and on islands where power stations producing
between 2 and 10 Mwe can be set up near to fuel sources
to meet local power needs. The main obstacles have been
how to get Power Purchase Agreements and access finance.
There is a lack of turnkey management expertise in this
new sector and regulatory frameworks need to be better
adapted to small power.
A new and innovative EU Promotion
Strategy is based on running a competition where the
prize for the best ten projects is to join a Trade
Mission to Europe to meet technology suppliers and
Export Credit institutions. The competitors must get in
place their local finance, technology choices and
management plan. Plus a provisional Power Purchase
Agreement and required permits and Environmental Impact
Assessment. It will also help if they can access carbon
credits or similar incentives. |
