| Regional Affairs
ASEAN energy ministers call for regional power integration Shanghai Daily 24th Sep 2014
The 32nd ASEAN Ministers of Energy Meeting (AMEM) concluded on Wednesday in Lao capital Vientiane with ministers agreeing on the need to achieve inter- connected regional power systems. In a joint ministerial statement, delegates applauded the initiative of a pilot project to explore cross-border power trade from Laos to Singapore. Laos, Thailand, Malaysia and Singapore are involved in the project's implementation. The energy ministers expressed their wish that the pilot project would act as a path finding project towards further multilateral electricity trade.
ASEAN
China to Ban Imports of High Ash, High Sulfur Coal From 2015 The Jakarta Globe 16th Sep 2014
China will ban the import and local sale of coal with high ash and sulfur content starting from 2015 in a bid to tackle air pollution, with tough requirements in major coastal cities set to hit Australian miners. The National Development and Reform Commission (NDRC) policy comes as prices on the GlobalCOAL Newcastle index slump to a five-year low amid a supply glut and slowing demand from China, the world’s top importer. China accounts for about a quarter of Australia’s coal exports. It took 54 million metric tons of thermal coal and 30 million tons of metallurgical coal from Australia in 2013. All the thermal coal exceeded the new ash limit, while the metallurgical coal was below the limit, according to consultants Wood Mackenzie.
Indonesia
Indonesia to Issue More Mining Policy The Jakarta Globe 23rd Sep 2014
The government is expected to issue more regulations on the mining sector in order to complete its value-added policy, according to R. Sukhyar, director general for coal and mineral resources at the Ministry of Energy and Mineral Resources. Sukhyar said the government plans to impose domestic market obligations on all refined minerals in an effort to develop the local industry. “However, we must have a industrial road map first, so that we can determine the domestic market obligation,” he added. A domestic market obligation refers to the quantity of coal and mineral resources that must be sold in the local market. After five years of little progress, the 2009 Mining Law, which aims to add value to the nation’s mineral resources, had finally made headway with the miners yielding to demands by the government to commit to in-country processing and refining.
Govt Sets Aside Rp 10t for Cash Aid to Dampen Effect of Fuel Price Hike The Jakarta Globe 23rd Sep 2014
The government is setting aside a total of Rp 10 trillion ($830 million) to help poor people get through a period of rising inflation due to the expected fuel price hike. Finance Minister Chatib Basri told reporters on Tuesday that the government has already allocated Rp 5 trillion in funds for social safety programs in the revised 2014 state budget to anticipate the likely adjustment of subsidized fuel prices later this year. This would be enough to cover direct cash transfers to help the poor cope with rising prices for three months after the government increases the fuel price. Bank Indonesia, the central bank, has said that a price increase could send the inflation rate to 9 percent, from just 4 percent now. “We have also proposed another Rp 5 trillion for 2015. It depends on the 2015 [House of Representatives] to approve it or not,” Chatib said.
Jokowi to form task force on energy ‘mafia’ The Jakarta Post 23rd Sep 2014
The incoming administration of president-elect Joko “Jokowi” Widodo and vice president-elect Jusuf Kalla is set to establish a task force to crackdown on “mafias” in the country’s energy sector, which are believed to have cost the state trillions of rupiah in inefficiencies, an aide has said. Hasto Kristiyanto, one of the deputies of Jokowi-Kalla’s transition team, said on Tuesday that the decision to form the task force was based on the team’s finding that “energy mafias” were hindering efforts to attain national energy sovereignty. “The next government is highly committed to eradicating oil and gas mafias. The task force is expected to effectively help enforce the law, without exception. Every violation will be dealt with legally and publicized to create a deterrent effect,” he said in a statement.
For Jokowi, Oil Mafia Is a Slick Target to Catch The Jakarta Globe 22nd Sep 2014
Public pressure continues to mount on President-elect Joko Widodo to clean up Indonesia’s corruption-riddled oil and gas sector, even as one of his advisers points to legislation passed under his party patron, former president Megawati Soekarnoputri, for empowering the “oil mafia.” The so-called mafia has been operating since the rule of the late strongman Suharto, says Erwin Usman, a member of the team advising Joko ahead of the transition of power from the administration of President Susilo Bambang Yudhoyono. “The mafia are one of the factors that kept Suharto in power for 32 years,” he said at a discussion in Jakarta on Sunday. “They started to party since the oil boom of the 1980s until the 1990s. Back then Indonesia was able to produce up to 1.6 million barrels per day.” The current rate of oil production just half that, at 818,000 bpd. Erwin, who is also the director of the Indonesia Mining and Energy Studies Institute, or IMES, said the mafia’s choke hold on the sector did not end with Suharto’s fall in 1998. If anything, he said, they were strengthened by the passage of a new oil and gas law in 2001.
Newmont Gets Indonesia Export Permit, Expects to Ship Copper in Days Jakarta Globe 22nd Sep 2014
Newmont Mining said on Monday it was expected to resume copper concentrate shipments from Indonesia this week after receiving an export permit from the government, signaling the end of an eight-month tax dispute. “For more than 8,000 employees and contractors at Batu Hijau and their families, the resumption of operations marks an important milestone in restoring their livelihoods,” said Newmont’s Indonesian chief executive Martiono Hadianto in a statement. US-based Newmont halted exports in January after Indonesia imposed a hefty export tax that the US firm said violated its mining contract. It halted production in June. Newmont, Indonesia’s second largest copper producer, is expected to ship around 200,000 metric tons of copper concentrate for the remainder of the year, Indonesia’s director general of coal and minerals for the mining ministry said earlier this month.
BPH Migas: Ban Sale of Subsidized Fuel for Private Vehicles The Jakarta Globe 18th Sep 2014
BPH Migas, the downstream oil and gas regulator, on Thursday asked the government to ban the sale of subsidized fuel to users of private vehicles starting next year. BPH Migas chairman Andy N. Sommeng was quoted as saying by state-run Antara news agency that such a policy would reduce subsidized fuel consumption by 15 to 20 million kiloliters in 2015. “We’re optimistic that with the support of all parties, fuel consumption control can be realized,” Andy said, adding that the policy would not require any additional equipment. He said that the government should however inform the public about the benefits of banning the use of subsidized fuel, to prevent chaos. “But don’t be overly dramatic. Our people can understand such a policy, as long as it is for the common good,” Andy said, adding the move could save the state up to Rp 80 trillion ($6.6 billion).
Indonesians Must Own Lead Role on Forest Issues: Norway The Jakarta Globe 18th Sep 2014
At the start of his second term in 2009, President Susilo Bambang Yudhoyono declared ambitious targets for Indonesia to reduce its greenhouse gas emissions. It was a bold pledge, coming from the world’s third-largest emitter — an ignominious distinction owing largely to Indonesia’s rate of forest destruction, which has surpassed that of Brazil. Yudhoyono later parlayed his commitments into an incentive-based partnership with the Kingdom of Norway. Under the scheme, called REDD+, Indonesia would receive up to $1 billion for following through on its promises of institutional and policy changes and delivering real results. Progress has been slow. To date, Indonesia has only achieved enough targets to draw down less than 5 percent of the substantial sum on offer.
Djoko Suyanto Questioned as Witness in Jero Wacik Graft Case The Jakarta Globe 16th Sep 2014
The Corruption Eradication Commission (KPK) on Tuesday questioned Coordinating Minister for Political, Legal and Security Affairs Djoko Suyanto as part of its investigation into the corruption scandal allegedly involving former Energy and Mineral Resources Minister Jero Wacik. “Yes [Djoko is being] questioned for [the case against] suspect J.W. [Jero Wacik],” KPK spokesman Priharsa Nugraha said on Tuesday. Arriving at the KPK headquarters on Jalan Rasuna Said in South Jakarta at 9.45 a.m., Djoko said he didn’t know what to expect. “I have been summoned in Jero Wacik’s case. Let’s see what the investigators’ questions will be,” Djoko said. The anti-graft commission on Tuesday also summoned Jero’s wife, Triesnawati Wacik, as a witness in the case against her husband.
Newmont Asked to Reconsider Smelter Plan Jakarta Globe 16th Sep 2014
The Indonesian government has asked Newmont Nusa Tenggara to reevaluate the possibility of building its own smelter rather than on relying on Freeport Indonesia to process its copper concentrate, according to an Energy and Mineral Resources Ministry official. “Newmont had done studies on smelter project and concluded that it was uneconomical to build it on its own. Now we ask them to do [the study] again,” said R. Sukhyar, the Energy Ministry’s director general for coal and mineral resources, on Monday.
Subsidized Fuel Quota Won’t Go Up in 2015, Prices Probably Will The Jakarta Globe 15th Sep 2014
The government and the House of Representatives on Monday reached an agreement to not increase the quota for subsidized fuel in 2015, which will likely mean the next government will need to raise prices to curb consumption. The head of the House’s Budgetary Committee (Banggar), Ahmadi Noor Supit, was quoted as saying by Detik.com that the quota for next year had been set at 46 million kiloliter — the same as this year’s. “In my opinion, a 46-million-kiloliter quota is good enough,” Ahmadi said, adding that any additional supplies would not benefit the people but be sold by smugglers. Ahmadi said that the decision was expected to trigger a subsidized fuel price hike under the next government. President-elect Joko Widodo will be inaugurated on Oct. 20. “This will narrow the [price] difference [between subsidized and non-subsidized fuel] so people won’t be interested in smuggling it,” he said. The price of subsidized fuel is fixed at Rp 6,500 ($.055) per liter, while non-subsidized fuel is sold for around Rp 11,000-Rp 12,000.
Chairul set to focus on pending issues The Jakarta Post 12th Sep 2014
Billionaire Chairul Tanjung began Thursday as the acting energy and mineral resources minister, but confirmed there was little he could do to fix the problems in the country’s oil, gas and mineral resources sectors with less than two months before the new government takes over. Speaking following his first meeting with the ministry’s senior officials, Chairul said he planned to concentrate on those things that had to be concluded before the new government assumed power on Oct. 20. “My aim is to settle pending matters. If they’re settled, that would be good. If not, at least we can leave a foundation for the next government,” he said.
Laos
Laos seeks electricity integration at Asean ministerial meeting Vientiane Times 15th Sep 2014
Laos is set to push for regional electricity integration at the upcoming 32nd Asean Energy Ministers Meeting (AEMM) scheduled to take place on September 22-24 in Vientiane. Speaking in a press conference last week, Deputy Minister of Energy and Mines Mr Viraphonh Viravong said energy integration is envisioned to facilitate the trade in electricity among the countries in the region. He told local media that Laos is prepared to host the 32nd AEMM and its related meetings. The related meetings included Asean Plus Three [three dialogue partners – China, Japan and Republic of Korea] Energy Ministers Meeting and Asean Plus Six [China, Japan and Republic of Korea, India, Australia and New Zealand] Energy Ministers Meeting. The Asean energy ministers will also hold meetings with the International Atomic Energy Agency's officials. Sharing lessons learnt on energy policies will dominate the meetings, according to the deputy minister. Various issues were on the agenda for discussion at the 32nd AEMM including cooperation on a gas pipe connectivity project and Asean oil stockpile project. Panel discussions initiated by Laos are set to be convened on the sidelines of the meetings where energy experts will be invited to share energy-related views such as energy development, use and trade. For instance, as Laos is striving to become the Asean battery, in this context Laos wants to hear from experts about what the opportunities and challenges are, Mr Viraphonh said.
Malaysia
Rich nations should do more, Najib tells UN Climate Summit New Straits Times 24th Sep 2014
Prime Minister Datuk Seri Najib Razak told the UN Climate Summit on Tuesday that Malaysia is committed to cut carbon emissions but said rich nations should also keep to their promises. He said at the one-day summit ahead of the annual meeting of the UN General Assembly that Malaysia was on track to cut the emissions intensity of the gross domestic product by 40 per cent by 2020 as promised. He said the pledge made at the 2009 Copenhagen UN climate change conference was made on the understanding that parties would honour their commitments to assist developing nations in financing and technology transfer. “They did not. Yet Malaysia continued to cut its emissions intensity, for the sake of our people – and our planet. “This time must be different. This time, all countries should commit to an ambitious deal to reduce emissions. And they must follow-up that commitment with consistent action,” he said in a speech. Najib said since 2009, Malaysia has implemented new national policies on climate change and green technology.
Go global, local O&G players urged The Malaysian Reserve 24th Sep 2014
Malaysia’s oil and gas (O&G) service providers should attempt to grow and integrate into large global players to become viable and sustainable entities, said Petroliam Nasional Bhd (Petronas) director Datuk Mohamad Idris Mansor. “Companies should invest in their own growth in terms of technical expertise and expand their range of capabilities to spread their business activities globally,” Idris said in his opening speech before officiating the Malaysia O&G Exhibition and Conference (MOGSEC) 2014 in Kuala Lumpur yesterday. According to Mohamad Idris, events such as MOGSEC play critical and effective role to bring together various local and international stakeholders from the industry to converge and develop strategy towards achieving the goal of making Malaysia a leading O&G services hub. One of the National Key Economic Areas under the Economic Transformation Programme deals with oil, gas and energy and a few Entry Point Projects (EPPs) deal with the sector. One of the EPPs is the implementation of enhanced oil recovery (EOR) programmes to enhance crude oil production in maturing fileds, with more than 10 EOR projects in the pipeline.
Putrajaya says Petronas not legally bound to pay east coast states The Malaysian Insider 24th Sep 2014
Petronas is not legally bound to make cash payments from petroleum in any state in the East Coast of Peninsular Malaysia. This is because, as of today, no oil has been found in the east coast states of Peninsular Malaysia which include Pahang, Kelantan dan Terengganu. It was based on the term "in the state" in the Settlement Agreements which refers to state land and state territorial waters of not more than three nautical miles measured from the low-water line offshore from the state coastline. This definition is based on international and domestic laws, according to the Finance Ministry in a statement issued today. Under the Settlement Agreements Petronas signed with Kelantan, Terengganu and Pahang, the states receive only 5% of the value of the petroleum dicovered in their territories and produced by the company.
Petronas moves to fuel production New Straits Times 23rd Sep 2014
Petroliam Nasional Bhd (Petronas) will spend more than RM1.1 billion over the next three to four years in its exploration and production technology centre to research and develop innovative and applicable technologies to rejuvenate and enhance oil production. A notable area the petroleum giant is looking at is the implementation of the Enhanced Oil Recovery (EOR) programme to enhance crude oil production in maturing fields, said Petronas director Datuk Mohamad Idris Mansor. There are currently 10 EOR projects in the pipeline at various stages, and the entire programme is scheduled to be rolled out in phases over the next decade, Idris said. The first application of EOR technology — a large-scale project developed at a cost of RM10 billion — is being implemented at the Tapis oil field, offshore Terengganu. It has the potential to boost production from Tapis by up to 35,000 barrels per day from the present three to four thousand barrels per day, he explained.
Petronas looks into producing chemicals in Sabah The Star 17th Sep 2014
Petronas Chemicals Group Bhd (PCG), Grupa Azoty Zaklady Azotowe “Pulawy” S.A. (Pulawy) and Sipitang Oil & Gas Development Corp Sdn Bhd (SOGDC) have inked a memorandum of understanding (MoU) to conduct a joint feasibility study for the production of urea and ammonia derivatives at the Sipitang Oil & Gas Industrial Park in Sabah. PCG president/chief executive officer Sazali Hamzah signed the MoU with Pulawy and SOGDC in the presence of Sabah Chief Minister Datuk Seri Musa Aman on Monday. Pulawy was represented by the company’s president Marian Rybak, while SOGDC was represented by general manager Kadir Abdullah. “PCG actively seeks potential partners who are willing to work with us in providing innovative customer solutions,” Sazali said in a statement issued from Poland yesterday. “Hence, we are delighted to explore the viability of working with Pulawy and SOGDC in developing urea and ammonia derivatives in Sabah,” Sazali added.
GE Solution To Deliver More Power At Lower Costs Bernama 15th Sep 2014
The 9EMax technology, which was announced at the recent Power-Gen Asia Conference & Exhibition here, can quickly deliver more power to the world's fastest-growing region at lower costs. In a statement today, General Electric (GE) said the technology could significantly elevate the output and efficiency of existing GE 9E gas turbines while empowering power providers to rapidly and cost-effectively deploy the solution. GE president of power generation business (Asia-Pacific), Ramesh Singaram, said the technology, could have an even larger impact in the Association of South-East Asian Nations, where demand was increasing at twice the rate of global growth. "With a fleet nearing 100 units accross Asia-Pacific, GE 9E customers can more effectively support the 10+ gigawatts of gas turbine power added in the region each year to keep pace with rising energy demand," he said.
ExxonMobil starts Tapis field enhanced oil recovery project The Malaysian Insider 12th Sep 2014
ExxonMobil Exploration and Production Malaysia Inc has started its Tapis enhanced oil recovery (EOR) project. In a statement today, ExxonMobil said the operations would start with water-alternating-gas injections from the recently-installed Tapis R central processing platform into targeted wells on the existing Tapis A platform. Its president, See Kok Yew, said the project exemplified ExxonMobil's leadership in technology application and global project execution excellence to maximise reserves recovery from producing fields. The Tapis EOR project is one of several oil and gas investments announced in January 2011 by Prime Minister Datuk Seri Najib Tun Razak as part of the country's Economic Transformation Programme.
Myanmar
Myanmar plans 32 hydropower projects The Nation 22nd Sep 2014
The government has already signed joint venture agreements with foreign companies to build four hydropower projects and memoranda of understanding for another 19, the ministry said, adding that nine other projects were on the table. Asia World Company has been given permission to build four hydropower projects with China Power Investment. These are the Ayeyawady Myitsone, Chee Phwe, Laiza and Kunlon dams, which will generate a combined 6,000 megawatts of electricity. The Myitsone project has been suspended following public protests, while environmental and social impact studies have been carried out for the other three, according to the ministry. China Power Investment and Asia World Co will also build four other dams in Kachin State - the Woo Zou, Khaung Lanphyu, Yenan and Pheezaw hydropower projects, the ministry said. China's Sinohydro Corp and the Electricity Generating Authority of Thailand have been given the green light to build the Hatgyi hydropower project on the Thanlwin River in Kayin State and Naungpha project on Shwe Li River. The former will have a capacity to generate 1,360 MW and the latter 1,200 MW, according to the ministry.
Myanmar opening door to offshore oil, gas but red tape spells delays Platts 22nd Sep 2014
After half a century behind militarily-closed doors, Myanmar is venturing back into the international petroleum industry and pinning its hopes on its offshore reserves of oil and gas. But significant legal and administrative hurdles need to be tackled, and progress is likely to be slow and piecemeal, delegates at an oil conference in Yangon heard two weeks ago. "Offshore blocks tend to be seen as offering more potential and thus generate more interest from foreign firms," Daw Wah Wah Thaung, executive planning officer at state-owned Myanma Oil & Gas Enterprise, or MOGE, told the second annual Southeast Asia Offshore Summit Myanmar. The country formerly known as Burma is one of the world's oldest oil producers, having pumped its first barrel of crude in 1853.
Large hydro projects may be dangerous for the country, energy firm says Eleven 22nd Sep 2014
Plans to build large-scale hydropower projects to meet the country’s increasing demand for power may be dangerous for the country, according to APR Energy (Asia Pacific). Speaking at the Myanmar Global Investment forum, a representative of APR suggested that hydropower was suitable for Myanmar, but warned that big hydro projects may be risky. Critics say the lack of an efficient power supply is a barrier to investment in manufacturing to tackle the country’s low level of employment – and the government needs to tackle the problem. They say Myanmar should enjoy benefits from natural gas projects as part of profit sharing with joint venture companies. But it is impossible to extract natural gas now even though more gas reserves have been found. In the bid to seek alternative energy sources, some are saying that hydropower is worth trying. Vikran Kumar, a resident representative from the International Finance Corp, part of the World Bank, said: “Hydro power sector is more suitable for Myanmar. Organisations like IFC and the World Bank (WB) don’t want to provide technical and financial assistance when power generation methods are not based on clean energy.”
Burmese Gas Firm Official Confirms Plans for Doubling of CNG Price Irrawaddy Magazine 22nd Sep 2014
The price of compressed natural gas (CNG), which is used in almost all public buses and many taxis in Rangoon, will rise by 100 percent, but likely not until sometime next year, an official from the Myanma Oil and Gas Enterprise says, denying local media reports that the price hike would take place effective Oct. 1. Local media reported last week that the CNG price would be doubled from the beginning of next month, but Burma’s Ministry of Energy denied those reports on Friday, posting on its Facebook page that any change in the fuel price would occur only after informing the public in advance.
Concerns Grow After Govt Confirms Massive Dam Project in Southern Shan State Irrawaddy Magazine 19th Sep 2014
A Shan lawmaker said her constituents in southern Shan State are growing increasingly concerned over a government plan to build an enormous hydropower dam in the region, after a cabinet minister earlier this week confirmed that Burmese, Chinese and Thai companies have government support for the construction of a 7,000-megawatt dam. Nang Wah Nu, a Lower House lawmaker from the Shan Nationalities Development Party (SNDP), said villagers from Kunhing Township had expressed concerns to her over the massive project after they spotted Burmese and foreign workers at the proposed construction site on the Salween River, located on the border of Mong Tong and Kunhing townships.
Myanmar vows to double efforts to meet national electrification target by 2030 Xinhua 16th Sep 2014
Myanmar has vowed to double current efforts to meet the national electrification coverage target for all households by 2030, sources with the Ministry of Electric Power said Tuesday. Effective ways are being taken to boost the current electrification effort including attracting huge investment to the sector, Minister of Electric Power U Khin Maung Soe told a workshop on national electrification program in Nay Pyi Taw Monday. According to U Khin Maung Soe, about 200,000 households in Myanmar get access to electricity yearly. However, he warned that with the current rate of electrification, it would take 36 years for the country to supply electricity to all households and it is impossible to meet the 2030 national electrification target.
Irrawaddy Division Residents Concerned After Officials Discuss Coal Plant Democratic Voice of Burma 16th Sep 2014
Irrawaddy Division officials and a Burmese construction company met with residents of villages in Nga Yoke Kaung Township last weekend to inform of them of a plan to build a 300-megawatt coal-fired power plant in the coastal region. They ensured the local population that they would not be negatively affected by the environmental impacts of the proposed plant, which they said would be funded by Japanese firms and overseas development bank loans. “We guarantee 100 percent that the power plant that we are building together with a Japanese company doesn’t cause any harm to people, animals and environment, as it utilizes advanced technologies,”said Yan Win,chairman of A1 Group of Companies, a Burmese conglomerate.
Philippines
Aquino invokes EPIRA’s crisis provision Business World 22nd Sep 2014
Malacagang has invoked the power crisis provision of the Electric Power Industry Reform Act of 2001 (EPIRA), seeking congressional authorization for the Executive to buy additional megawatts despite warnings by some business groups this could jack up electricity rates.
Foreign firms eyeing energy projects in the country -- DoE Business World 24th Sep 2014
TWO FOREIGN FIRMS have expressed interest to participate in the development of energy resources in the Philippines, the Department of Energy (DoE) said in a statement on Tuesday. The interest was manifested during the Association of American Petroleum Geologists International Conference and Exhibition held in Istanbul, Turkey that ran from Sept. 14 to 17. The department said the conference became an opportunity for its delegation “to hold exploratory talks with ExxonMobil Corp. and the Turkish Petroleum International Co. for possible stakes in energy resource development in the Philippines.”
P814-M solar energy project to rise in Clark PTVNews 23rd Sep 2014
A Belgian renewable energy developer will pour some P814 million for the construction, operation and maintenance of a solar project in this Freeport. Enfinity Philippines Renewable Resources Inc., (EPRRI) in a signed contract with the Clark Development Corporation (CDC), will lease about 25 hectares of property inside this Freeport which is expected to generate 11 megawatts of power once operational next year. Benigno Gonzales, consultant of EPRRI, said the construction of the solar energy project here will provide an annual increase of 5.6 percent in power generation.
Philippines courting ExxonMobil, Turkish firm to invest in upstream oil, gas exploration InterAksyon 23rd Sep 2014
The Department of Energy (DOE) is courting major oil players in the US and Turkey to invest in the Philippines' upstream oil and gas industry. In a statement, DOE said it held exploratory talks with ExxonMobil Corp and the Turkish Petroleum International Co (TPIC). US-based ExxonMobil is the world's largest publicly traded international oil and gas company, while TPIC is a subsidiary of Turkish Petroleum Corp, Turkey's national oil company. ExxonMobil previously held a stake in a petroleum block in the Sulu Sea but withdrew from the contract in 2011 after it deemed resources in the area of "non-commercial quantities." The DOE touched base with the oil firms during two of its recently concluded international roadshows to promote the upcoming Philippine Energy Contracting Round 5 (PECR 5).
Renewable energy firm bags tax incentives from BOI for Mindoro plant Interaksyon 22nd Sep 2014
Renewable energy developer Emerging Power Inc (EPI) has received tax incentives from the government for the company's geothermal power project in Mindoro. Antonio G. Zamora, EPI chairman, said the Board of Investments (BOI) fiscal incentives would help fast track project development. "EPI is committed to support the government’s effort to fastrack the construction and completion of more power plants – more so renewable power plants – to address the anticipated power crisis in the coming years. We thank the BOI for granting EPI the tax incentives without undue delay," he said. EPI is developing up to 40 megawatts of generating capacity from the $185 million geothermal power project in Naujan, Oriental Mindoro. The facility is targeted for completion by the third quarter of 2016. The BOI incentives include income holiday for seven years, duty-free importation of renewable energy machinery, materials and equipment; cash incentive of renewable energy developers for missionary electrification; and tax credit on domestic capital equipment and services, among others.
Noy seeks emergency powers from Congress Philippine Star 12th Sep 2014
With widespread blackouts looming next year due to shrinking energy sources, President Aquino is asking Congress to give him emergency powers so he can stave off a potential crisis that can push back economic growth and shatter his administration’s gains. An energy crisis in 2015 is also expected to complicate efforts by the administration to win votes in the general elections the following year.
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