EC-ASEAN COGEN Programme:

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1 EC-ASEAN COGEN Programme: Implementing Biomass Cogeneration in ASEAN 2nd World Conference on Biomass for Energy, Industry and Climate Protection May 2004 Palazzo dei Congressi, Rome, Italy Eric Chanfreau COGEN 3 Deputy Programme Co-ordinator Romel M. Carlos Financial Advisor 1

2 (COGEN 3) An economic cooperation programme between European Commission (EC) & Association of South East Asian Nations (ASEAN) Funded by the EC (15 Mill. EURO) 3 year programme January 2002 December 2004 Coordinated by Asian Institute of Technology (AIT) & Carl Bro International AB 2

3 COGEN 3 Objectives Promote the use of cogeneration in ASEAN Promote proven, clean and efficient European cogeneration technologies Create business opportunities for cogeneration using biomass, coal and gas as fuels 3

4 COGEN 3 Organisation & stakeholders Stakeholders in Europe Project developers Equipment suppliers Banks & financiers Stakeholders in ASEAN Project developers Equipment suppliers Banks & financiers Policy makers COGEN 3 European Office Malmö, Sweden COGEN 3 Programme Management Unit Bangkok, Thailand COGEN 3 ASEAN Country Co-ordinators in 7 Countries 4

5 COGEN 3 Country Co-ordinators ordinators Research Center for Energy and Environment, Hanoi Energy Development and Utilization Foundation, Manila Energy Conservation Center of Thailand, Bangkok Ta Prohm Consultants, Phnom Penh SIRIM Berhad, Shah Alam Energy Ventures Pte. Ltd., Singapore Research and Development Center for Energy and Electricity Technology, Jakarta 5

6 COGEN 3 activities Facilitation of cogeneration project development Full Scale Demonstration Projects (FSDPs) Capacity building, awareness & information Cogeneration policy guidance 6

7 Facilitation of cogeneration project development: Technical, Business & Market Information Directories on European & ASEAN equipment suppliers & service providers Report on Cogeneration Technologies: Part 1: Definitions and Systems Part 2: Technologies and Products Cogeneration Project Development Guide (2 nd Edition) Guidance for development of cogeneration projects Applicability of European Technologies in ASEAN Market Cogeneration equipment status in the ASEAN market Sector overview: Suitable applications and equipment National Cogeneration Policy Reviews (7 country reports) Overview of existing policies Guidance for policies promoting cogeneration 7

8 Facilitation of cogeneration project development: Services to project developers & end-users Technical / Financial / Environmental Analysis Advice on technology selection & investment decisions Financial packaging Announcement of identified cogeneration projects in ASEAN Tools for development & evaluation of cogeneration projects Technical Financial Analysis model (ver. 2) for free distribution Several advanced tools for advisory services 8

9 Support to Cogeneration Projects and Full Scale Demonstration Projects (FSDPs) Active facilitation among stakeholders of cogeneration projects Financial packaging, networking and fund mobilisation Selected projects (FSDP) will get support with investment, training and monitoring 9

10 145 New Cogeneration Projects in South East ASIA Developing Cogeneration Projects by Sector Sector Country No. of Capacity CB ID MY PH SG TH VN Projects (MW) Cement Chemical Food* Land field&waste Palm oil Power&Utilities** Pulp&Paper Rice Sugar Textile Unspecified Wood Note: * Including Fruit, Cassava & starch, Tea, Farm, Livestock, Piggery and Tannery ** Including Airport, Army, Commercial complex, IPP and SPP 10

11 ASEAN Cogeneration Project Potential No. of project (s) Cement Chemical Food* Land field&waste Palm oil Power&Utilities** Pulp&Paper 0 Sector Rice Sugar Textile Unspecified Wood 11

12 COGEN 3 activities Facilitation of cogeneration project development Full Scale Demonstration Projects (FSDPs) Capacity building, awareness & information Cogeneration policy guidance 12

13 Full Scale Demonstration Projects (FSDPs) Objective: Demonstrate the technical reliability and economic viability of proven European cogeneration technology to ASEAN end-users 13

14 FSDP Eligibility Criteria Cogeneration Implemented in ASEAN European equipment Proven technology Biomass, coal and/or gas as fuels Compliance with national regulation Implemented before December

15 Support to FSDP 15% of eligible European equipment cost Ceiling at 400,000 Euro Support for development, training, monitoring and advertising 15

16 Full Scale Demonstration Projects (FSDPs) 24 FSDP Candidates selected in 2003 Capacity: MW (Total: 174 MW) Total Amount of EC support: 6.9 mill. EURO Total Investment: 209 mill. EURO 17 projects are expected to be implemented by end of

17 5 projects in Thailand Proven, Clean & Efficient Biomass, Coal, Gas Cogeneration 24 Selected EC-ASEAN Full COGEN Scale Programme Demonstration Phase III Projects 1 project in Vietnam 1 project in Philippines 1 project in Cambodia 8 projects in Malaysia 2 projects in Singapore 6 projects in Indonesia

18 24 Selected Full Scale Demonstration Plants Palm oil waste : 8 Rice husk : 6 Bagasse : 2 Wood waste : 3 Biogas : 4 * Bio-oil : 1 *

19 COGEN 3 activities Facilitation of cogeneration project development Full Scale Demonstration Projects (FSDPs) Capacity building, awareness & information Cogeneration policy guidance 19

20 Capacity building, awareness & information: 2003 COGEN 3 events Cogeneration Weeks in 7 countries (1,200 participants) Training courses in cogeneration project development (5 events, 143 participants) Seminars on financing of cogeneration projects in Thailand, Malaysia & Indonesia (85 participants) Clean Development Mechanism seminar in Malaysia (80 participants) Major exhibitions & conferences Power Gen Asia (Ho Chi Minh City) Sustainable Energy Asia (Singapore) Site visits to 8 cogeneration plants (183 Participants) Policy forum & study tour in Thailand & Policy maker study tour to Europe (25 high ranking ASEAN policy makers) 20

21 Capacity building, awareness & information: 2004 Cogeneration Weeks Thailand March Bangkok Vietnam 6 9 April Hanoi & Ho Chi Minh City Singapore 23 April (Cogeneration Day) Indonesia May Jakarta & Balikpapan Cambodia 8 11 June Phnom Penh & Battambang Philippines June Manila & Isabela Province Malaysia 6 8 July Kuala Lumpur & Johor Baru Opening ceremony: Policy and financing Forum & Mini-exhibition with European cogeneration suppliers Cogeneration project development seminar Site visit & individual consultations 21

22 Capacity building, awareness & information: Other 2004 COGEN 3 events Major exhibitions & conferences: World Conference & Technology Exhibition on Biomass (Rome, May) Power Gen Europe (Barcelona, May) Asian Energy Business Forum (Manila, June) Power Gen Asia (Bangkok, October) Clean Development Mechanism seminars in Thailand & Indonesia Visit to Full Scale Demonstration Projects 22

23 COGEN 3 activities Facilitation of cogeneration project development Full Scale Demonstration Projects (FSDPs) Capacity building, awareness & information Cogeneration policy guidance 23

24 Cogeneration policy guidance Objective: Improve financial and regulatory conditions to enhance further cogeneration development Activities: National energy policy reviews & guidance for each country ASEAN Policy maker study tours to Europe Seminars & meetings Cogeneration Weeks 24

25 Cogeneration policy guidance Typical barriers: Education: Lack of understanding the benefits Technical/ Commercial: Grid connection codes, Energy sales permission and Buy back rates Financing: Projects usually considered too small and risky 25

26 Conclusions Huge potential for Biomass cogeneration. Use of this potential depends on the interrelated issues of Understanding the Technology, the Financing and Policy. The driving force for industry to invest in Cogeneration is the need for reliable power and lower energy cost. This force is independent of overcapacity present in some countries There is a need for a comprehensive Cogeneration Policy/ Decentralised Energy Production Policy in ASEAN Financing largest obstacle for cogeneration investment despite market liquidity 26

27 For more information, please visit COGEN 3 Website at: Thank You! 27