(Goldbook) Cepsi 2018 - FULL - SINGLE - 060918

Tenaga nasional proudly presents
Reimagining Utility
of The Future
CONFERENCE OF THE
ELECTRIC POWER SUPPLY
INDUSTRY
17-22 SEPTEMBER 2018
KUALA LUMPUR
CONVENTION CENTRE
KUALA LUMPUR, MALAYSIA
Hosted by:
GoldBook 2018
CONTENT
2 3 4 24
Editor’s Welcome Australia Cambodia
Note Message
42 64 72 106
Chinese Taipei French Polynesia Hong Kong SAR Indonesia
116 162 174 188

Japan Korea Laos Macau SAR
196 236 242 274

Malaysia People’s Republic Philippines Singapore
of China
298 316 336

Sri Lanka Thailand Vietnam
EDITOR’S
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NOTE
The AESIEAP Goldbook is the official publication of the Association of Electricity Supply
Industry of East Asia and the Western Pacific (AESIEAP). This year 2018 edition contains
information such as:
• The latest information on the electric power sector (data as of year 2014 onwards);
• Current issues facing the power industry in the region and strategies used to
overcome them; and
• Energy outlook and opportunity profiles of each AESIEAP member countries/
regions.
This 2018 edition includes country’s or region’s reports with data updated from year
2014 onwards only, provided by the country members. To the best of our knowledge,
the information contained herein is accurate and reliable as of the date of publication
(or stated otherwise); however we do not assume any liability whatsoever for the
accuracy and completeness of the above information.
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W E L C O M E M E S S AG E F R O M T H E
PRESIDENT OF AESIE AP
It is indeed my pleasure to present the 2018 edition of the AESIEAP Goldbook to delegations of the Conference of the
Electric Power Supply Industry (CEPSI) 2018.
This AESIEAP Goldbook has served its purpose as reference book with regard to the regulations, energy outlook, market
structure, featured technology trends and stories affecting the electric power supply industry in the countries/regions.
It is dynamic for the Goldbook to be updated regularly to enable members to have the updates and information of all
member countries.
It is our pleasure and privilege to host the 22nd Conference of the Electric Power Supply Industry (CEPSI) 2018. CEPSI
has emerged over the years as a premier platform for power industry companies, utility leaders, industry professionals
and experts from all over the world to gather, exchange ideas and learn from one another, while also being a renowned
avenue for industry players to showcase their technologies, products and services.
The theme that was selected for CEPSI 2018 is “Reimagining Utility of the Future”; we believe that the theme underpins the
current reality of how the electric supply industry is transforming in response to acceleration of technology disruptions,
economic shifts, evolving sustainability and regulatory requirements and increasing customer expectations. Related
discussion topics will include sustainability, energy trilemma, emerging megatrends and technologies, and digitalisation.
This conference will thus be a platform for utility leaders and electricity supply/energy industry experts to share their
thoughts on current issues impacting the industry, as well as the related challenges and solutions. It will also be an
excellent opportunity for all delegates to network and share latest developments and innovations amongst peers and
experts in the industry.
We would like to extend a warm welcome to all participants in CEPSI 2018 and thank all the AESIEAP member countries
who have sent their delegations. With your participation and our continuous collaborations, I am sure that we will be able
to make a difference towards a better, sustainable, innovative and smarter future, together.
Yours sincerely,
Datuk Seri Ir. Azman Mohd

President of AESIEAP 2017 – 2018
President/Chief Executive Officer of
Tenaga Nasional Berhad
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AUSTRALIA C EPS I 2018
Capital: GDP: Installed Capacity:
Canberra USD1,379.4 47,148

billion3
MW4
Area: Electrified Rate:
7.692 Currency:
100%
million km 2
1 Australian
Population:
dollar
(AUD)
24.7
million2
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1 General information
Power Demand by Sector5
Table 1: Power Demand 2017-2018
Actual 2017 Forecast Change Forecast 2018

Sector (MWh) 2017 to 2018 (%) (MWh)
Business (Industrial/Commercial) 125,940,000 2.58% 129,196,000
Residential 45,582,912 -0.98% 45,137,040
Network Losses 11,593,565 -6.94% 10,788,930
Total Consumption 183,116,600 1.09% 185,122,000
Note: 2018 forecast represents a neutral forecast scenario assuming no fundamental changes in business or energy sector conditions
2 Energy Policy and Electricity Market
National Energy Policy
In October 2016, the Council of Australian Governments’ (COAG) Energy Council agreed to review the National Electricity
Market, in response to concerns about security and reliability. Australia’s Chief Scientist Dr. Alan Finkel AO headed up the
review, with the Blueprint for the Future Security plan delivered in mid-2017. The plan focused on the security of the
energy market, future reliability, rewarding consumers and lower emissions.
Following on from the plan, the Federal Government announced a proposal to introduce a National Energy Guarantee
(NEG).The proposed guarantee is aimed at lowering emissions and delivering a more affordable and reliable energy
system. In April 2017, the COAG Energy Council agreed for the proposed NEG to proceed to final design. The final design
is due later in 2018.
Note
1 http://www.ga.gov.au/education/geoscience-basics/dimensions/area-of-australia-states-and-territories.html
2 http://www.abs.gov.au/ausstats/abs@.nsf/mf/3101.0
3 http://dfat.gov.au/trade/resources/Documents/aust.pdf
4 https://www.aer.gov.au/system/files/AER%20State%20of%20the%20energy%20market%202017%20-%20A4.pdf (figure only accounts for capacity in
the National Electricity Market)
5 www.aemo.com.au
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Supply and Demand of Primary Natural Resources in Australia
Australia’s natural resources include bauxite, coal, uranium, natural gas, petroleum and hydropower. Australia’s abundant
and diverse natural resources are an essential input to Australia’s GDP.
Bauxite – Australia is the world’s largest producer of bauxite, accounting for about one third of global output. Bauxite
production in Australia is estimated to reach 86.9 million tonnes in 2017-2018.6
Coal – Australia is the largest exporter of metallurgical coal and the second largest thermal coal exporter in the world.
It is predicted that metallurgical coal export earnings will reach a record of $38 billion in 2017-2018, based on higher
prices. Strong demand from Asia is driving thermal coal export earnings, with earnings estimated to reach a record $23
billion in 2017-2018.7
Uranium – Australia is one of the world’s largest producers of uranium. Uranium is an important low emission base load
source of electricity generation internationally. Australia has 31% of the world’s proven uranium reserves and produces
and exports more than 7,000 tonnes a year. Export earnings are expected to reach almost $700 million by 2019-2020.8
Natural Gas – Australia is the second largest LNG exporter in the world. Projects under construction are expected to drive
an increase in export volumes once they are completed. It is estimated export volumes will rise to 77 million tonnes in
2019-2020, up from 62 million in 2017-2018.9 10
Petroleum – Australia has produced oil commercially since the 1960s and oil exploration is an important driver of
Australia’s prosperity. Oil remains Australia’s largest primary energy source in 2014-2015, providing 38% of all energy.11
Hydropower – Australia has more than 120 operating hydroelectric power stations, with a total generation of almost
20GWh or 8% of total energy generated. These are located in the areas of highest rainfall and elevation and are mostly
in New South Wales and Tasmania. In 2029-2030, the share of hydropower in Australia’s total electricity generation is
projected to fall to around 3.5%.12 Hydropower accounts for 33.9% of renewable electricity produced in Australia in 2017.13
Note
6 https://ibisworld.com.au/industry-trends/market-research-reports/mining/bauxite-mining.html
7 https://publications.industry.gov.au/publications/resourcesandenergyquarterlyjune2018/index.html
8 https://publications.industry.gov.au/publications/resourcesandenergyquarterlyjune2018/index.html
9 http://www.appea.com.au/oil-gas-explained/benefits/benefits-of-lng/export-revenue/
10 https://www.industry.gov.au/data-and-publications/resources-and-energy-quarterly-june-2018
11 https://www.appea.com.au/wp-content/uploads/2017/05/APPEA_Key-Stats-2017_web_revised.pdf
12 http://arena.gov.au/about-renewable-energy/hydropower/
13 https://www.cleanenergycouncil.org.au/technologies/hydroelectricity.html
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Australian National Electricity Market Overview Laws and Regulations
Australia’s geography is diverse with much of its population National Electricity Market (NEM)
spread along the coastal regions. The geographic isolation
of Western Australia and the Northern Territory in relation The NEM is an electricity wholesale market which
to the highly-populated east coast has led to separate interconnects Queensland, New South Wales, Victoria,
electricity systems to those that are on the eastern side of South Australia and Tasmania’s power system. It is the
Australia.
longest interconnected power system in the world.
The National Electricity Market (NEM) commenced on

The National Electricity Rules (NER) provides the regulatory
13 December 199814 and operates in six interconnected
regions, namely Queensland, New South Wales, Australian framework for the operation of the NEM. The National
Capital Territory, Victoria, Tasmania and South Australia. Electricity Law (NEL) sets out the roles and responsibilities
The Wholesale Electricity Market (WEM) operates within of the Australian Energy Market Commission, Australian
the South West Interconnected System (SWIS) and the Energy Regulator and the Australian Energy Market
Northern Territory has no wholesale electricity market.15 Operator.
Figure 1: Structure of the NEM in Australia16 Figure 2: Governance Structure in the NEM17
AEMO Council of Australian Governments

(COAG)
GENERATOR
COAG Energy Council
Energy markets policy development
TRANSMISSION NETWORK
SERVICE PROVIDER
Australian Energy Regulator
AEMC
Energy market economic
DISTRIBUTION NETWORK Energy market
regulation and rule
SERVICE PROVIDER rule setting
enforcement
MARKET CUSTOMER
AEMO
DISPATCH INSTRUCTIONS Energy market operator
(40% industry owned)
FINANCIAL FLOW
PHYSICAL ELECTRICITY FLOWS
Note
14 http://www.aemo.com.au/Electricity/National-Electricity-Market-NEM
15 http://www.aemo.com.au/Electricity/Wholesale-Electricity-Market-WEM
16 AEMO An Introduction to Australia’s National Energy Mmarket July 2010
17 www.aph.gov.au/parliamentary_business/committees/senate_committees?url=electricityprices_ctte/electricityprices/report/c02.htm
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The Council of Australian Governments (COAG) is the peak intergovernmental forum in Australia18 while the COAG
Energy Council is responsible for pursuing priority issues of national significance in the energy and resources sectors
and progressing the key reform elements of the former Ministerial Council on Mineral and Petroleum Resources and the
Ministerial Council on Energy.
The Australian Energy Market Operator (AEMO) is the manager and operator of the NEM, ensuring the agreed standards
of security and reliability are maintained.
The Australian Energy Market Commission (AEMC) is the rule maker and provides policy advice for the NEM.
The Australian Energy Regulator (AER) regulates energy markets and networks under national energy market legislation
and rules. Its functions, which mostly relate to energy markets in eastern and southern Australia, include:
• setting the prices charged for using energy networks (electricity poles and wires and gas pipelines) to transport energy
to customers;
• monitoring wholesale electricity and gas markets to ensure suppliers comply with the legislation and rules, and taking
enforcement action where necessary; regulating retail energy markets in the ACT, South Australia, Tasmania (electricity
only) and New South Wales. This includes enforcing compliance with retail legislation; authorising retailers to sell
energy;
• approving retailers’ policies for dealing with customers in hardship; administering a national retailer of last resort
scheme; reporting on retailer performance, educating consumers and small businesses about their energy rights and
managing the energy price comparison website – Energy Made Easy;
• publishing information on energy markets, including the annual State of the Energy Market report and more detailed
market and compliance reporting, to assist participants and the wider community; and
• assisting the ACCC with energy-related issues arising under the Competition and Consumer Act, including enforcement,
mergers and authorisations.19
Western Australia Electricity Market
Western Australia’s (WA) electricity market comprises of several distinct systems which include the South West
Interconnection System (SWIS), the North West Interconnected System (NWIS) and 29 isolated regional power systems.20
The SWIS operates as a wholesale electricity market while the NWIS is a state owned, fully vertically-integrated system
providing transmission, distribution and retailing of electricity. The WEM operates in the SWIS, which is regulated by an
independent body of the State Government and the Economic Regulation Authority (ERA) whose responsibility is to
ensure service is delivered at a fair price.
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Northern Territory Electricity Market
The Northern Territory’s (NT) electricity market is small and therefore is not feasible to establish a wholesale electricity
market. NT has three small regulated systems which are Darwin-Katherine, Alice Springs and Tennant Creek.
The Utilities Commission regulates the electricity network in the NT. Its role is to administer various legislation including
the Utilities Commission Act, Electricity Reform Act, and Electricity Networks (Third Party Access) Act.21
Electricity Consumption Forecast and Expected Annual Growth Rate22
Consumption of grid-supplied electricity is forecast to remain mostly flat for the next 20 years, despite a projected 30%
growth in population and average growth in the Australian economy, increasing from an estimated 183,258 gigawatt
hours (GWh) in 2015–16 to 187,544GWh in 2021.
While population and appliance use is growing, the increased generation from rooftop photovoltaic (PV) and more
energy-efficient appliances is expected to drive a decline in net residential demand.
However, consumption is forecast to increase near the end of the 20 years as a result of the predicted take-up of electric
vehicles. At this stage, it is predicted that 19% of the light vehicle fleet will be electric by 2036-37.
Electricity Exported and Imported into Australia as at end 2017
Australia’s location is remote and there are no neighbouring countries that will allow the import or export of electricity
into and out of Australia.
Electricity exports (million kWh) = 0

Electricity imports (million kWh) = 0
Note
18 http://www.coag.gov.au/
19 AER, AER’s About us, available: http://www.aer.gov.au/about-us (accessed 07 July 2014)
20 www.aph.gov.au/parliamentary_business/committees/senate_committees?url=electricityprices_ctte/electricityprices/report/c02.htm
21 www.utilicom.nt.gov.au/Electricity/Technical/Pages/default.aspx
22 www.aemo.com.au/Electricity/National-Electricity-Market-NEM/Planning-and-forecasting/Electricity-Forecasting-Insights/2018-Electricity-
Forecasting-Insights
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Electricity Tariff Structure in Australia23 Types of Tariff Structures
The electricity tariff structure in Australia normally • Single rate – flat rate for anytime usage block rate
comprises two parts: – a usage rate calculated based on blocks of usage.
• Off-peak – rates offered during off peak times such as
i. Fixed Charge – supply of electricity to your property.
night time and weekends.
ii. Variable Charge – based on the amount of electricity
• Time of use – differing rates based on the time of day.
used.
• Feed-in Tariff – credits paid to customers who generate
more than they consume i.e. electricity generated from
The Australian Energy Market Commission’s (AEMC) 2017
solar photovoltaic (PV) and fed back into the grid.
residential price trends report looks at the driving factors
behind electricity prices across Australia. There are a
Electricity Generation Subsidies
range of factors that contribute to pricing, including the
wholesale purchase costs, regulated network costs and
Australia has a number of subsidies which promote clean
environmental policy costs.
energy including the Renewable Energy Target (RET) and
Feed-in Tariff (FIT):
The AEMC report predicts that nationally, residential
electricity prices will decrease on average 6.2% annually, • The RET is split into two parts: The Large-scale Renewable
from 2017 to 2019-2020, reflecting a predicted fall in Energy Target (LRET) and the Small-scale Renewable
wholesale costs in 2018-2019 and 2019-2020 as a result Energy Scheme (SRES). These schemes create a financial
of new generation coming on line and other drivers. incentive for investment in renewable energy sources
through the creation and sale of certificates.24 On 17
However, the report predicts that prices in the Northern June 2015, the Australian Federal Government and Labor
Territory and Western Australia will increase over the same opposition reached an agreement on a revised RET of
period, while prices in the ACT will rise until 2018-2019 33,000 gigawatts of additional renewable electricity
and then decrease the following financial year. generation by 2020.
• The FIT scheme is enacted by several State Governments
in Australia for electricity generated by solar PV systems.
The schemes are available to domestic installations and
generally have a cap on the capacity installed.
Note
23 www.aer.gov.au/consumers/my-energy-bill/tariff-and-fees-explained
24 http://www.cleanenergyregulator.gov.au
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3 Power Generation, Transmission and Distribution
Generation by Fuel Type, Capacity and Production as at March 201825
Capacity of existing or withdrawn, and committed or proposed generation projects for the National Electricity Market.
Figure 3: NEM Installed Capacity
25000
Announced
Withdrawal
20000
Committed
Existing less
Generation capacity (MW)
Announced
Withdrawal
15000
Proposed
Withdrawn
10000
5000
Gas
Coal CCGT OCGT other Solar Wind Water Biomass Storage Other
Gas
Status Coal CCGT OCGT other Solar* Wind Water Biomass Storage Other Total
Existing 22,916 3,013 6,439 2,159 323 4,462 7,941 580 100 419 48,352
Announced 2,000 208 34 510 - - - - - - 2,752
Withdrawal
Existing less 20,916 2,805 6,405 1,649 323 4,462 7,941 580 100 419 45,600
Announced
Withdrawal
Committed 178 - 4 210 1,877 2,032 4 24 32 29 4,390
Proposed - 500 2,950 975 17,297 17,568 5,093 521 80 475 45,464
Withdrawn -1,600 -62 - - - - - - - - -1,662
Note:Existing includes Announced Withdrawal. This data is current as at 16 March 2018

*Excludes rooftop PV installations.
25 http://www.aemo.com.au/Electricity/National-Electricity-Market-NEM/Planning-and-forecasting/Generation-information
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Figure 4: Electricity Supply Structure26
TRADING RIGHTS POWER STATIONS CAPACITY (MW) OWNER

QUEENSLAND (16,380MW)
Stanwell; Tarong; Tarong
Stanwell Corporation
Stanwell Corporation North; Barron Gorge; 3,489
(Qld Government)
Kareeya; Mackay
Callide B; Kogan Creek;
CS Energy 1,930 CS Energy (Qld Government)
Wivenhoe
Rio Tinto 42.1%; NRG Energy 37.5%;
CS Energy Gladstone 1,680
others 20.4%
Darling Downs;
Origin Energy 1,013 Origin Energy
Mount Stuart; Roma
CS Energy (Qld Government) 50%;
InterGen (China Huaneng Group/
CS Energy/InterGen Callide C 900
Guangdong Yudean Group 50%;
others 50%) 50%
InterGen (China Huaneng Group/
Guangdong Yudean Group 50%;
InterGen Millmerran 760
others 50%) 59%; KIAMCO/
Daelim 35%; others 6%
Arrow Energy
Arrow Energy Braemar 2 504
(Shell 50%; PetroChina 50%)
Alinta Energy Braemar 1 471 Alinta Energy (TPG Capital)
ERM Power Oakey 282 ERM Group
RATCH Australia
AGL Energy/Arrow Energy Yabulu 242 (Ratchaburi Electricity Generation
80%; Ferrovial 20%)
RTA Yarwun Yarwun 154 Rio Tinto Alcan
Shell Condamine 144 Shell
Pioneer Sugar Mill;
Wilmar International 118 Wilmar International
Invicta Sugar Mill
Moranbah North;
AGL Energy 108 Energy Developments (DUET Group)
German Creek
Mackay Sugar Racecourse Mill 48 Mackay Sugar
Ergon Energy Barcaldine 34 Ergon Energy (Qld Government)
Energy Infrastructure Investments
Origin Energy Daandine 33 (Marubeni 50%; Osaka Gas 30%;
APA Group 20%)
National Power Partners Rocky Point 30 National Power Partners
Unscheduled plant
101
< 30MW
Note
26 https://www.aer.gov.au/system/files/AER%20State%20of%20the%20energy%20market%202017%20-%20A4.pdf
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NSW (12,041MW)
Bayswater; Liddell;
AGL Energy 4,764 AGL Energy
Hunter Valley
Powering Australian Renewables
AGL Energy Broken Hill; Nyngan 155
Fund (AGL Energy 20%; QIC 80%)
Eraring; Shoalhaven;
Origin Energy 3,802 Origin Energy
Uranquinty; Eraring
Origin Energy Cullerin Range 30 Energy Developments (DUET Group)
Tumut 3; Colongra; Snowy Hydro (NSW Government
Snowy Hydro Upper Tumut; 3,212 58%; Vic Government 29%; Australian
Blowering; Guthega Government 13%)
EnergyAustralia Mount Piper; Tallawarra 1,745 EnergyAustralia (CLP Group)
Sunset Power International (Waratah
Sunset Power International Vales Point 1,320 Power Pty Ltd 50%; Vales Point
Investments 50%)
Infigen Energy Capital; Woodlawn 188 Infigen Energy
Beijing Jingneng Clean Energy 75%;
EnergyAustralia Gullen Range 166
Goldwind Capital 25%
Origin Energy Smithfield Energy Facility 162 Marubeni Corporation
State Power Investment Corporation
EnergyAustralia Taralga 106
(Chinese Government)
Stanwell Corporation Appin; Tower 96 Energy Developments (DUET Group)
Capital Dynamics Broadwater; Condong 68 Capital Dynamics
Electricity Generating Public
EnergyAustralia Boco Rock 113
Company
Essential Energy Broken Hill 50 Essential Energy (NSW Government)
Acciona Energy Gunning 46 Acciona Energy
Trustpower Hume 29 Trustpower (51% Infratil)
Origin Energy Moree 56 Fotowatio Renewable Futures
Unscheduled plant
272
< 30MW
VICTORIA (10,306MW)
Loy Yang A; Kiewa;
AGL Energy Somerton; Eildon; Clover; 2,885 AGL Energy
Dartmouth; McKay
Snowy Hydro (NSW Government
Murray; Laverton North;
Snowy Hydro 2,080 58%; Vic Government 29%; Australian
Valley Power
Government 13%)
EnergyAustralia Yallourn 1,420 EnergyAustralia (CLP group)
Origin Energy Longford 44 BHP Billiton 50%; Exxon Mobil 50%
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VICTORIA (10,306MW) (con’t)
Engie Loy Yang B 980 Engie 70%; Mitsui 30%
Jeeralang A and B;
EnergyAustralia 883 IFM Investors
Newport
Origin Energy Mortlake 518 Origin Energy
Morrison & Co. 50%;
AGL Energy Macarthur 336
Malakoff Corporation Berhad 50%
Pacific Hydro (State Power
Yambuk; Challicum Hills;
Pacific Hydro 231 Investment Corporation
Portland
(Chinese Government))
Acciona Energy Waubra 192 Acciona Energy
Meridian Energy Mount Mercer 131 Meridian Energy
Alinta Energy Bald Hills 106 Mitsui
Hydro Tasmania Bairnsdale 70 Alinta Energy (TPG Capital)
AGL Energy Oaklands Hill 50 Challenger Life (Challenger)
Trustpower Hume 29 Trustpower (51% Infratil)
ACT Government 33%; RES; GE; Downer;
Ararat 170
Ararat Wind Farm 67% Partners Group; OPTrust
Unscheduled plant
181
< 30MW
SOUTH AUSTRALIA (4,055MW)
AGL Energy Torrens Island 1,260 AGL Energy
Pelican Point; Canunda;
Engie Dry Creek; Mintaro; Port 565 Engie 72%; Mitsui 28%
Lincoln; Snuggery
Snowtown; Snowtown
Origin Energy 369 Trustpower (51% Infratil)
North; Snowtown South
Quarantine; Ladbroke
Origin Energy 254 Origin Energy
Grove
EnergyAustralia Hallet 198 EnergyAustralia (CLP Group)
Infigen Energy Lake Bonney 2 and 3 182 Infigen Energy
Origin Energy Osborne 172 ATCO 50%; origin Energy 50%
Energy Infrastructure Trust
AGL Energy Hallett 2; Wattle Point 145
(Infrastructure Capital Group)
EnergyAustralia 50%; Palisade Investment Partners/
Waterloo 130
Hydro Tasmania 50% Northleaf Capital Partners
Snowy Hydro (NSW Government
Port Stanvac; Angaston;
Snowy Hydro 128 58%; Vic Government 29%;
Lonsdale
Australian Government 13%)
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SOUTH AUSTRALIA (4,055MW) (con’t)
Energy Infrastructure Trust
AGL Energy North Brown Hill 92 (Infrastructure Capital Group) 40%;
Osaka Gas 40%; APA Group 20%
Essential Energy Lake Bonney 1 81 Infigen Energy
AGL Energy Hallett 1 71 Investment Corporation
Meridian Energy Mount Millar 70 Meridian Energy
EnergyAustralia (CLP Group) 50%;
EnergyAustralia Cathedral Rocks 66
Acciona Energy 50%
Pacific Hydro Clements Gap 57 Investment Corporation
Eurus Technical Service Corporation
AGL Energy The Bluff 53 (Toyota Tsusho 60%, Tokyo Electric
Power Company 40%)
RATCH Australia
Hydro Tasmania Starfish Hill 35 (Ratchaburi Electricity Generation
80%; Ferrovial 20%)
ACT Government Hornsdale 100 Neoen 70%, John Liang 30%
Unscheduled plant
27
< 30MW
TASMANIA (2,665MW)
Gordon; Poatina; Tamar
Hydro Tasmania 2,136 Hydro Tasmania (Tas Government)
Valley; Bell Bay; others
Woolnorth; Shenhua Clean Energy 75%; Hydro
Hydro Tasmania 308
Musselroe Tasmania 25%
Unscheduled plant
106
< 30MW
Fuel types: coal; gas; hydro; wind; diesel/fuel oil/multi-fuel; biomass, bagasse; solar; unspecified.
MW, megawatts
Note: Capacity as published by AEMO for summer 2016-2017, except for non-scheduled plant (registered capacity).
Source: AER.
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Figure 5: Power Plants in Australia27
Note
27 https://www.aer.gov.au/system/files/AER%20State%20of%20the%20energy%20market%202017%20-%20A4.pdf
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Power and Development Plan
The role of Australia’s transmission There is a risk that concentration of this generation in the same location will
grid is evolving, from the secure cause local transmission congestion due to network limitations. New power
transportation of bulk power system infrastructure may be required to provide frequency control and
generation, to include the secure network support services. Currently, regions with high renewable penetration
integration of renewable generation rely heavily on interconnection to provide these services. In future, alternative
and emerging technologies. This solutions may need to be explored if higher penetrations of renewable and
reflects a changing paradigm embedded generation are to be integrated across the NEM.
characterised by declining electricity
consumption from the grid, an As the proportion of behind-the-meter generation increases, detailed
increasing focus on renewable information on the location, extent and operation of embedded technologies
and embedded generation, and (including rooftop PV, battery storage or electric vehicles) will be needed to
withdrawal of thermal synchronous accurately forecast operational consumption and manage the supply demand
generation (such as coal and gas- balance on the system.
fired generation).
Figure 6: Substation in Australia
Continuing the trend observed
in recent years, expenditure to
replace ageing transmission network
infrastructure currently outweighs
investment in new network capacity.
This is expected to continue for the
next 20 years.
Based on the current Large-scale

Renewable Energy Target (LRET), the
2015 National Transmission Network
Development Plan (NTNDP) modelled
up to 6,700 megawatts (MW) of
additional large-scale renewable
generation investment across the
NEM by 2020.
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4 Reduction of Carbon Dioxide Emissions
Renewable Energy Target (RET)
The Renewable Energy Target is an Australian Government scheme introduced in 2001 and expanded in 2007. It was
designed to reduce emissions of greenhouse gases in the electricity sector and encourage the additional generation of
electricity from sustainable and renewable sources.
The RET works by allowing both large-scale power stations and the owners of small-scale systems to create certificates
for every megawatt hour of power they generate. Certificates are then purchased by electricity retailers who sell the
electricity to householders and businesses. These electricity retailers also have legal obligations under the RET to
surrender certificates to the Clean Energy Regulator, in percentages set by regulation each year. This creates a market
which provides financial incentives to both large-scale renewable energy power stations and the owners of small-scale
renewable energy systems.
In the case of small-scale systems, all certificates are provided ‘up front’ for the systems’ expected power generation or
displacement over a 15-year period. Generally, householders who purchase these systems assign the right to create their
certificates to an agent in return for a lower purchase price. The level of this benefit differs across the country depending
on the level of solar radiation.
Emissions Reduction Fund
Australia’s Emissions Reduction Fund was set up to enable Australian businesses and households to take practical, direct
action to reduce emissions and improve the environment.
The objective of the Emissions Reduction Fund is to help achieve Australia’s 2020 emissions reduction target of 5% below
2000 levels by 2020. The Government has provided $2.55 billion to establish the Emissions Reduction Fund, with further
funding to be considered in future budgets.
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Encouraging Innovation in Clean Energy
The Clean Energy Finance Corporation (CEFC) invests commercially to increase the flow of funds into renewable energy,
energy efficiency and low emissions technologies. The CEFC has supported projects across the Australian economy,
benefitting a diverse range of businesses, large and small.
The CEFC’s mission is to accelerate Australia’s transformation towards a more competitive economy in a carbon
constrained world, by acting as a catalyst to increase investment in emissions reduction. The CEFC does this through
direct investments which attract private sector finance, as well as through its strategic co-financing partners.
The CEFC was created by the Australian Government and operates under the Clean Energy Finance Corporation Act
2012.
Feed-in Tariffs
Figure 7: Solar in Australia
Feed-in Tariffs (FIT) provide individuals

producing their own renewable
energy via solar PV panels a financial
return for any surplus power
generated which is fed back into the
electricity grid. States and territories
in Australia have their own schemes.
These schemes encourage individuals
to install solar PVs which reduce their
energy consumption thus lowering
carbon emissions.
FIT is a payment from either a

government or an energy retailer
for electricity that is generated by
customers, either at home or in a
business. The payment is made to
recognise the value of energy fed
back into the electricity grid.
20
C EPS I 2018
Most FIT are generated by renewable energy systems such as a small-scale solar panels on the roof of a house or a larger
wind or hydro system on a property owned either by an individual or a business. The tariffs are designed to compensate
consumers or businesses that purchase products such as solar panels by helping speed up the process of getting back
the original purchase amount.
There are two types of FIT: net and gross. A net FIT works by offsetting the total amount of electricity consumed from
the grid against the amount able to be generated independently. The tariff is paid for every excess kilowatt of energy fed
back into the grid.
A gross FIT is a payment for the total amount of electricity generated.
Figure 8: Production of Renewable Energy by Various Resources28
Renewable Energy Generation

Percentage Percentage
Generation Of Renewable Of Total Equivalent Number Of Households
Technology (GWh) Generation Generation Powered Over Course Of The Year
Hydro 12,920 33.9% 5.74% 2,811,140
Wind 12,873 33.8% 5.72% 2,800,914
Small-scale solar PV 7,723 20.3% 3.43% 1,680,412
Bioenergy 3,713 9.7% 1.65% 807,783
Medium-scale solar 197 0.5% 0.09% 42,959
PV
Large-scale solar PV 695 1.8% 0.31% 151,243
Solar thermal 16 0.0% 0.01% 3,383
Geothermal 1 0.0% 0.00% 152
TOTAL 38,138 100% 16.94% 8,297,986
Note
28 Clean Energy Australia Report 2015
21
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5 Advanced Metering Infrastructure/Smart Grid Deployment
A smart grid works by applying sophisticated communication, sensing and metering technology to an existing electricity
network. Smart meters have the potential to significantly improve the efficiency of Australia’s electricity networks and to
transform the way energy is used, both at home and at work.
A smart grid has the capacity to identify and resolve faults on the electricity grid and to pinpoint infrastructure that might
need repairs or maintenance. It also helps consumers manage electricity bills by using ‘smart appliances’ that run on off-
peak power.
Victoria is the only Australian state or territory to have Advanced Metering Infrastructure (AMI), also known as smart
meters, installed in most homes and small businesses, following a decision by the State Government in 2006 to mandate
a rollout.
There are now more than 2.8 million smart meters across the Victorian network, with the benefits of the technology
being realised by networks and consumers.29
The technology is allowing electricity distribution businesses to improve network safety and reliability, as well as reduce
consumer costs. The meters are also allowing customers to have better insight of their energy use.
Over the 2017-2018 summer, the smart meter technology allowed some Victorian network businesses to contribute to
AEMO’s Reliability and Emergency Reserve Trader.30 By using the smart meters, the networks were able to lower voltages
to reduce pressure on networks during peak demand, while ensuring the reliability of supply and keeping customers
within acceptable voltage levels.
Smart meters are now available and being installed into homes in other states and territories in the NEM.
Customers can request to have the digital meter installed, or once their current meter needs replacing, it will be replaced
with the newer technology.
The Australian Energy Market Commission has also introduced competition in metering, with retailers in others states,
except for Victoria, now responsible for the meter and its replacement.31
Note
29 https://www.energynetworks.com.au/smart-metering
30 https://www.aemo.com.au/Electricity/National-Electricity-Market-NEM/Emergency-Management/RERT-panel-expressions-of-interest
31 https://www.aer.gov.au/consumers/my-energy-service/smart-meters
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6 Latest Technology and Innovations
The rapid transformation of the energy sector is driving Large scale batteries are also being incorporated into the
new innovation across all tiers of the market, with these grid in a variety of projects and trials.
changes often supported by Federal or State funding and
programmes. For example, the Federal and State Government is funding
two large-scale batteries in Victoria to provide 55MW of
Rooftop solar PV installations are growing and there are energy and 80MWh of storage capacity. These are aimed
now more than 1.6 million households and businesses with at providing affordable and reliable electricity. One battery
the technology.32 will be located at a solar farm, storing the energy generated
at the site, while the second will be located at an existing
These installations have been supported by state-based terminal substation, capturing excess energy generated
FIT schemes. from renewable sources and easing transmission
congestion.36
Rooftop solar may reach 50,000GWh by 2040, according
to latest predictions.33 Note
32 www.aer.gov.au/system/files/AER%20State%20of%20the%20
energy%20market%202017%20-%20A4.pdf
Energy storage is widely expected to create sweeping 33 https://reneweconomy.com.au/rooftop-solar-may-overtake-coal-
changes to the way energy is generated and used. by-2040-and-save-billions-20657/
Installation of battery storage in homes and businesses 35 https://virtualpowerplant.sa.gov.au/virtual-power-plant
remains relatively low but is growing as the cost of the 36 http://www.joshfrydenberg.com.au/guest/mediaReleasesDetails.
aspx?id=541
technology reduces. Battery storage is likely to be more
viable for commercial users than households in the short
term.34
Small-scale batteries are also being used as part of broader

energy trial, such as South Australia’s 250MW ‘virtual power
plant’. This project involves linking household rooftop
solar and battery storage across a network of homes and
is aimed at lowering energy prices and increasing grid
stability.35
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7 Major Challenges or Transformation
Australia’s energy sector is going through an ‘unprecedented Solar farms are now contributing to the NEM, with 232MW
rate of change’37 as it transitions from coal generation to installed at March 2017. This is expected to increase, with
renewable energy. The Australian Energy Market Operator more than 1,700MW of large-scale solar capacity proposed
recently said the country was ‘witnessing disruption across for the NEM.40
almost every element of the value chain’.
The 2016 state-wide blackout in South Australia has also
Closure of some power stations, including Victoria’s focused attention on security of supply, driving community
Hazelwood coal-fired power station, equated to the and political attention to the sector.
withdrawal of 2,000MW from the market. This created
concern about meeting 2017-2018’s summer demand as A subsequent review of the energy market has led to a
well as the pressure on wholesale prices. number of new policies and inquiries into the state of the
sector, including a focus on the cost of electricity.
The cost of renewables is continuing to fall and the
Renewable Energy Target has encouraged an uptake in A change of Federal Government or State Government can
wind generation, with an extra 400MW of wind capacity result in present policies being removed or changed.
added to the NEM in 2015-2016.38
Note
37 http://www.aemo.com.au/Media-Centre/2018-Integrated-System-
In South Australia, the amount of wind generation met 38% Plan
of the state’s electricity needs in 2015-2016, rising to 50% 38 www.aer.gov.au/system/files/AER%20State%20of%20the%20
in March 2017.39 energy%20market%202017%20-%20A4.pdf
24
CAMBODIA C EPS I 2018
Capital: Population: Percentage of
Phnom 15,779,726
Villages Electrified:
81.58%
Penh GDP:
Area: USD1,427
181,035
km2
per capita
Currency:
Cambodian
riel
25
C EPS I 2018
Power Demand by Sector
Table 1: Power Consumption by Sectors
Total Power Projected Power

Consumption as Projected Change Consumption
Sector of 2017 (MWh) (Year 2017) 2018 (MWh)
Industrial 1,259,272 125.60% 1,002,635
Residential 1,546,292 83.06% 1,861,575
Commercial 1,877,177 84.06% 2,233,087
Others 2,310,855 81.92% 2,820,807
Total 6,993,595 88.32% 7,918,104
Policy and Regulatory Framework
According to the Royal Government of Cambodia (RGC), on Electricity’ was adopted by the National Assembly of
the four main objectives of the energy sector development Cambodia on 6 November 2000 and promulgated by
policy are as follows: Royal Decree on 2 February 2001. This law covers all
i. Provide an adequate supply of electricity throughout activities relating to the supply, provision of services and
the country at reasonable and affordable prices. use of electricity, and other associated activities of the
ii. Ensure a reliable and secure electricity supply power sector. It helps reform the current electricity sector
which facilitates investment in Cambodia and the and is endorsed to boost private investors in the power
development of the national economy. sector in a fair, just and efficient manner for the benefit of
iii. Encourage the exploration of environmentally and Cambodian society.
socially acceptable energy resources needed to supply
all sectors of the Cambodian economy. Overall, this law has the following key components:
iv. Encourage the efficient use of energy to minimise the i. Establish the principles for operation of the sectors.
environmental effects resulting from energy supply ii. Establish favourable conditions for competition, private
and use. investment, private ownership and the commercial
operation of the electric power industry.
To prepare a governing framework for the electric power iii. Establish and define the functions of the Electricity
supply and services throughout the country, the ’Law Authority of Cambodia (EAC) and the Ministry of Mines
and Energy (MME).
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C EPS I 2018
In this regard, there are three main players which have To guide the development of the energy sector, the MME
considerable power in the electricity sector in Cambodia: has continued the implementation of the Energy Sector
the MME, the EAC and Electricite Du Cambodge (EDC). Development Plan, 2005-2024. The Rural Electrification
The EDC is the most influential of the three players in the Master Plan, which focuses on the use of renewable
electricity market. Other players in the market include energy, is also being implemented.
independent power producers (IPPs), rural electrification • To implement the Rural Electrification Policy, the
enterprises (REEs), and other licensees that import RGC has transferred Rural Electrification Funds to be
electricity from neighbouring countries or own stand- led by EDC to promote equity in access to electricity
alone diesel generators. supply services and to encourage the private sector to
participate in investing in rural power supply services
In addition to the Law on Electricity, the RGC also specifies with sustainability, in particular, to encourage the use
the development of the energy sector in the National of new technologies and renewable energy.
Strategic Development Plan (NSDP) with the prioritised • To expand its regional cooperation, within the
aims of increasing electricity supply capacity and reducing framework of the Greater Mekong Subregion (GMS),
tariff rates to an appropriate level while strengthening Cambodia has been participating in the implementation
institutional mechanism and management capacity. of the GMS Power Trade Plan.
To achieve the desired goals, the development of the • Within the framework of ASEAN, Cambodia has
electricity sector is set out in the Rectangular Strategy participated in the implementation of the ASEAN
Phase II of the fourth-mandate RGC. Power Grid.
To ensure sustainable development of the electric power Although significant progress has been made, the energy
sector, an electrification master plan was worked out for: sector faces many challenges:
(1) electricity generation development including • Electricity production from hydropower plants is only
hydropower resources development and the during the rainy season, but in the dry season, power
development of coal or gas power plant. production is only 40%.
(2) electricity import to coordinate the development of • Expansion of the distribution line to the rural areas is
the border zones of the kingdom and the development limited.
of the transmission grid in order to establish the • Electricity tariffs are not quite competitive with regional
electricity transmission system of Cambodia. markets.
• The reliability and stability of supply still needs to be
Furthermore, the RGC will encourage the construction of improved.
low cost electricity generating plants by using local energy
sources such as hydropower, natural gas and coal. Source: National Strategic Development Plan 2014-2018
As the electricity sector in Cambodia is fundamentally

governed by the Law on Electricity, sub-degrees and other
regulations have subsequently been issued by the EAC.
27
C EPS I 2018
Institutions
Under the electricity law, there are two main institutions playing important roles in governing the electric power sector
in Cambodia, namely the MME and the EAC. Whilst the MME is mainly responsible for the formulation of policies and
strategies, the EAC is a legal public entity granted the right by the RGC to be an autonomous agency to regulate the
electricity services and to govern the relationship between the delivery, receiving, and use of electricity. The roles of these
two government agencies are illustrated in Figure 1 as below:
Figure 1: Governance of the Electricity Sector in Cambodia
Royal Government of Cambodia
Ministry of Mines and Energy Electricity Authority of Cambodia
- Energy Policies - To issue regulations

- Electric Power Strategies - To issue licences to electric power
- Power Development Plan service providers
- Technical, Safety, Environment - To review costs and approve tariffs
Standards - To resolve disputes
- Other Duties - To regulate, impose penalties
Electric Power Supplies Electric Power Users
Source: EAC Annual Report 2016

28
C EPS I 2018
a) Ministry of Mines and Energy rates or charges and terms and conditions are
established pursuant to a competitive, market-
As set out in the Law on Electricity, the MME has the based process.
following roles: • To order to implement guidance procedures
and standards for investment programmes by
• Responsible for setting and administrating the licensees.
government policies, strategies and planning in • To review the financial activities and corporate
the energy sector. organisation structure of licensees to the extent
• Providing the EAC information on policies, that these activities and organisation directly
strategies, planning of the energy sector and its affect the operation of the power sector and the
decision on: efficiency of the electricity supply.
- Investments in the rehabilitation and • To approve and enforce the performance
development of the energy sector in the standards for licensees.
short, medium and long term. • To evaluate and resolve consumer complaints
- Restructuring, private sector participation and and contract disputes involving licensees, to the
privatisation of public utilities. extent that the complaints and disputes relate to
- Promoting the use of indigenous energy the violation of the condition of licences.
resources in the generation of electricity. • To approve and enforce a uniform system of
- Planning and agreements on the export and accounts for all licensees.
import of electricity. • To prescribe fees applicable to licensees.
- Subsidies to specific classes of customers and • To determine the procedures for informing the
priorities regarding consumers of electricity. public about affairs within its duties, in order to
- Promoting efficiency in the generation, ensure that the EAC complies with the principle of
transmission, distribution and consumption transparency.
of electricity and taking action to create • To issue rules and regulations and to make
a comprehensive electricity conservation appropriate orders, and to issue temporary and
programme for Cambodia. permanent injunctions for electric power service.
- Electricity sector emergency and energy • To impose monetary penalties, disconnect power
security strategies. supply, suspend or revoke the licence for violations
of this law, standards and regulations of the EAC.
b) Electricity Authority of Cambodia
To require the electric power services and the
The EAC is a legal public entity, granted the right by customers to obey the rules relating to the national
the RGC to be an autonomous agency to regulate energy security, economic, environment and other
electricity services and to govern the relationship government policies.
between the delivery, receiving and use of electricity.
c) Electricite Du Cambodge
The Law on Electricity regulates the roles of the EAC,
as follows: EDC, the state-owned public utilities entity, has the
• To issue, revise, suspend, revoke or deny the following functions and responsibilities:
licences for the supply of electricity services. • To develop, generate, transmit and distribute
• To approve the tariff rates and charges and terms electric power throughout Cambodia.
and conditions of the electric power services of • To operate as a commercial entity, independently
licensees, except where the EAC considers those organise production and operation in accordance
29
C EPS I 2018
with market demand and seek to earn a profit, Co-owners of the EDC are the MME and the Ministry
increase the value of its assets, create economic of Economy and Finance (MEF). Based on the EAC
benefits and raise labour productivity. Annual Report 2016, the EDC holds a consolidate
• To prepare, build, own, finance, lease and operate licence that has the following components:
power generation and sub-stations, transmission i) Generation licence: giving EDC the right to
lines, distribution networks and other necessary generate electricity for the purpose of supply to
infrastructure. its transmission and distribution system.
• Eliminate inefficiencies from operation and reduce ii) National transmission licence: giving EDC (only)
unnecessary costs. the right to transmit electricity for the purpose of
• Maximise the output and reliability of the assets supply to any distribution system and bulk power
and customer satisfaction with higher quality and consumers throughout Cambodia.
better services. iii) Distribution licence: giving EDC the right to
• To be polite, receptive and act promptly with distribute and supply electricity to any premises in
customers’ concerns. the authorisation distribution areas.
Figure 2: Governance of the Electricity Sector in Cambodia
Royal Government of Cambodia
Electricity Authority Ministry of Mines Ministry of Economy

of Cambodia and Energy and Finance
Regulation Policy maker Owner
Cambodia's Electricity Business
REEs IPPs PEC EDC
Ownership of EDC
Policy; Planning; Development; Technical standards
Tariffs, licences, finances and performance, enforce the regulations, rules and standards
REEs : Rural Electrification Enterprises
IPPs : Independent Power Producers
PEC : Provincial Electricity Company
EDC : Electricite Du Cambodge
Source: MME (2017)

30
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Overview of Electricity Market Structure
The Electricity Authority of Cambodia (EAC) is an autonomous body set up to regulate and monitor the electric power
sector throughout the country. Its duties include issuing licences, approving and enforcing performance standards for
licensees to ensure quality supply and better services to the consumers and determination of tariffs, rates and charges
for electric power services, which are fair to both the consumers and the licensees.
Figure 3: Electricity Market Structure of Cambodia
Electricity supplies through National Grid
Import Independent Total supply from National Grid

Electricity Power - Total number of licensed villages: 11,934 which is 84.23% of total villages
Producers - Number of connections: 2,221,808 which is 92.25% of total connection
Cost from electricity source
National grid Cost from Subtransmission Supplement Transmission

and Substation Substation to rural area cost line
Cost from Substation Cost from Subtransmission
Zone 1 Zone 2 Zone 3

Number of villages supplied = 1,868 Number of villages supplied = 9,868 Number of villages supplied
Number of consumers = 971,222 Number of consumers = 1,229,979 = 198
Number of consumers
= 20,607
Phnom
IPPs
Provincial Provincial Distribution

Penh
Distribution Distribution in rural area Distribution in rural area
Distribution
Import from neighbouring country on small-scale
Import from neighbouring country on small-scale Transmission line

Supplement cost
Zone 4 Zone 5
Number of villages supplied = 1,196 Number of villages supplied = 500
Number of consumers = 130,216 Number of consumers = 46,234
Distribution line at the border Distribution in rural area
Total supply by importing from neighbouring countries

- Total number of licensed villages: 1,696 which represents 11.97% of total villages
- Number of connections: 175,450 which represents 7.28% of total connection
31
C EPS I 2018
Figure 3: Electricity Market Structure of Cambodia
Mini-Grid
Zone 6
Diesel Distribution
- Number of licensed villages: 202 which represents 1.43% of total villages
Generation in rural area
- Number of connections: 11,649 which represents 0.48% of total connections
Laws and Governmental Regulations

Table 2: Power Demand and Energy Consumption
The law on electricity is a basic file to the provisions for all activities Energy
in the field of electricity and basic preparation regulations for Power Demand Consumption
controlling and regulating the electricity sector. Government Year (MW) (GWh)
regulations for the electricity sector policy and for the provisions 2016 1,068 6,110
2017 1,269 6,994
on electrical activity in the field of electricity. The key principles
2018 1,372 7,866
of the electricity sector, which have not been defined by law
2019 1,530 8,566
can also be put to use by government regulations. Regulations
2020 1,681 9,406
of the government, including the decree and decision, notices
2021 1,847 10,328
Regulation of the Ministry of Mines and Energy, including post
2022 2,029 11,340
and the decision, is for those jobs such as management policies,
2023 2,229 12,452
strategic development plan technical standards electricity and
2024 2,449 13,673
other settings. Regulation of the Electricity Authority of Cambodia
2025 2,678 14,951
(EAC) is the documentation for regulatory and management
2026 2,929 16,349
services and the use of electricity in the Kingdom of Cambodia.
2027 3,204 17,878
These regulations include licensing regulations, procedures, and 2028 3,504 19,550
decision electricity Cambodian authorities have a duty to be out 2029 3,832 21,378
in the framework Law on electricity1. 2030 4,279 23,874
Electricity Consumption or Demand in 2016-2021 and

Expected Annual Growth Rate
The Amount of Electricity Exported and Imported in
Cambodia
According to Cambodia’s Power Development Plan, which was
revised in 2015, electricity demand is expected to face a significant
Cambodia borders Thailand to the north and west, Laos to the
increase in the next 15 years. Electricity demand in Cambodia is
northeast, and Vietnam to the east and southeast. Cambodia has
projected to grow from 334MW in 2010 to 2,678MW in 2025.
been importing power from Vietnam since 2009 via the 230kV
To meet the future demand, the Cambodia has developed the
transmission line and from Thailand since 2007 via the 115kV
Power Development Plan up to 2030.
transmission line. Power from Laos has been imported since 2010
via medium voltage and via the 115kV transmission line which was
The majority of this growth will occur in the southern grid which
put into operation at the end of 2017. In 2017, a total of 86.80GWh
includes Phnom Penh. Table 2 depicts the expected power
of power was imported from Thailand, 983.04GWh from Thailand
demand for Cambodia2.
and 52.84GWh from Laos. Currently, Cambodia does not export
1 http://eac.gov.kh/en/publication/law-and-regulation/ power to neighbouring countries.
2 EAC Annual Report 2016
32
C EPS I 2018
Tariff Structure
According to Article 7 of the Electricity Law3 , the EAC has the viii. To prescribe fees applicable to licensees.
following powers and duties: ix. To determine the procedures for informing the public
i. To issue, revise, suspend, revoke or deny the licences for the about its activities within its duties, in order to ensure that
provision of electric power services as provided in Article 29 the EAC complies with the principle of transparency as set
of the law. forth in Article 3 of this law.
ii. To approve tariff rates and charges and terms and conditions x. To issue rules and regulations and to make appropriate
of the electric power services of licensees, except where orders, and to issue temporary and permanent injunctions
the EAC considers those rates or charges and terms and for electric power services.
conditions are established pursuant to a competitive, xi. To impose monetary penalties, disconnect the power
market-based process. supply, suspend or revoke the licence for violations of this
iii. To enforce regulations, procedures and standards for law, standards and regulations of the EAC.
investment programmes by licensees. xii. To require the electric power service providers and the
iv. To review the financial activities and corporate organisation consumers to obey the rules relating to the national energy
structure of licensees to the extent that these activities security, economic, environmental and other Government
and organisation directly affect the operation of the policies.
power sector and the efficiency of electricity supply; and xiii. To perform any other function incidental or consequential
to approve and enforce the performance standards for to any of the duties as described above.
licensees. xiv. To establish the terms and conditions of employment of the
v. To evaluate and resolve consumer complaints and officers or employees including experts/advisors of EAC4.
contract disputes involving licensees, to the extent that
the complaints and disputes relate to the violation of the The mechanisms of electricity pricing, market model and market
conditions of licence. regulation are the responsibility of the EAC.
vi. To approve and enforce a uniform system of accounts for
all licensees. 3 http://eac.gov.kh/wp-content/uploads/2014/05/2nd-Amendmend-
vii. To prepare and publish reports of the power sector and of-Electricity-Law.pdf
relevant information received from licensees for the benefit 4 http://eac.gov.kh/wp-content/uploads/2016/10/Annual-Report-
of the Government and the public. 2015-English.pdf
2 Power Generation, Transmission and Distribution Sectors
The Total Installed Capacity of

Generation by Fuel Types Figure 4: Installed Capacity by Type from 2011-2016
MW
In 2016, the total installed capacity Biomass
was about 2,107MW, of which hydro 2,500
Fuel Oil
accounted for 44.14%, coal 25.39%, 2,000
Import
import 18.41%, fuel oil 11.77% and
1,500
biomass 0.28%. Total production was Coal
about 6,612GWh5. 1,000 Hydro
500
5 http://www.edc.com.kh/
images/Annual%20Report%20 0 Year
2016%E2%80%8B%E2%80%8B%20 2011 2012 2013 2014 2015 2016
publish%20English%20version.pdf
33
C EPS I 2018
The structure of installed generating capacity by producers

Figure 5: Generation by Type in 2016 in 2016 (public utilities and IPPs):
EDC : 113MW
IPP : 1,606MW
Import Import : 388MW
Coal 19%
36%
Table 4: List of Major Power Plants by Type
Fuel Oil
6%
Power Plant Type
Kirirom I Hydro
Kirirom III Hydro
Kamchay Hydro
Atay Hydro
Biomass Hydro
LSRC Hydro
0.5% 39%
Lower Sesan II Hydro
Tatay Hydro
CEL Coal
CIIDG Coal
Table 3: Installed Capacity and Generation by
Suvannaphum Coal
Type in 2016
KEP Fuel oil
CEP Fuel oil
Installed Generation
Type Capacity (MW) (MWh) COLBEN Fuel oil
Hydro 930 2,561,350.05 Sunseap Solar
Biomass 6 32,603.66 PP Sugar Biomass
Fuel Oil 248 382,843.48
Coal 535 2,391,281.70
Import 388 1,243,847.48
34
C EPS I 2018
Table 5: List of Power Grids by Major Voltage Levels Figure 6: Kamchay Hydropower Plant
Transformer
No Substation Type Power Quantity
1 1 115/22kV 75 2
2 2 115/22kV 50 3
115/22kV 50 2
3 3
115/22/15kV 50 1
230/115kV 200 2
4 4
115/22kV 50 3
5 5 115/22kV 50 3
230/115kV 200 2 Figure 7: Stung Atay Hydropower Plant
6 6
115/22kV 50 2
230/115kV 200 2
7 7 230/22kV 75 1
115/22kV 50 1
8 8 115/22kV 75 1
50 1
9 SR1 115/22kV
25 1
10 SR2 115/22kV 50 1
230/115kV 100 1
11 STH
230/22kV 50 1
12 SHV 115/22kV 50 1
Outlook Plan for the Next Decade
13 Tatay 230/115/22kV 60 1
14 BTB-CPG 230/115/22kV 90 2
Power Development Plan:
15 PST 230/22kV 25 1
The EDC publishes its Annual Report each year. The report
16 BTB-CPTL 115/22kV 50 1
included the Power Development Plan which is revised by
17 OSOM 230/115/22kV 150 1 the MME.
18 KCH 115/22kV 50 2
19 TK 230/22kV 50 1 Figure 8: 100MW Coal-Fired Power Plant Project
20 K.POT 230/22kV 50 1
21 CHHOUK 230/115kV 100 1
22 KPS 115/22kV 50 1
23 KS 115/22kV 50 1
24 CHM 115/22kV 50 1
25 IE 115/22kV 50 1
26 BMC 115/22kV 50 1
27 KTE 230/22kV 50 1
TOTAL 2,425 48
35
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Figure 9: Transmission Line Development Plan 2016 - 2020

36
C EPS I 2018
Renewable Energy Target
Cambodia is a member of the Head of ASEAN Power Utilities Authorities (HAPUA) and the Greater Mekong Subregion
(GMS) which have set the target of ensuring that renewable energy accounts for at least 15%6 of its generation mix. A solar
farm with a capacity of 10MW in the southeast part of Cambodia is operated by Singaporean sustainable energy company
Sunseap and 60MW and 30MW solar projects will become operational in 2019 and 2020 respectively.
Energy Efficiency Policy
Cambodia’s Energy Efficiency policy is to reduce future national energy demand by 20%7 until 2035, based on the 2010
level.
The National Energy Efficiency Policy has set five activities as priority areas:
Industry Activities: Reduce energy intensity per unit of production.
End User Products Activities: Improve the energy efficiency of end-user products through an energy labelling system.
Building Activities: Implement energy efficiency codes for new buildings, energy manager certification programmes and
the Green standard for new buildings.
Rural Electricity Generation and Distribution Activities: Introduce and enforce standards on electricity generation and
distribution, training REEs to operate their systems more effectively.
Biomass Activities: Reduce the consumption of firewood and charcoal through the utilisation of more efficient
technologies.
6 http://www.asean.org/wp-content/uploads/images/Community/AEC/AMEM/hapua%20council%20joint%20statement%202013.pdf
7 Department of New and Renewable Energy, Ministry of Mine and Energy
37
C EPS I 2018
Figure 10: 270MW Coal-Fired Power Plant Project
Situation of Cambodia
Country-by-country approach is likely to be sub-optimal (Naudé, 2011). In the past, industrial policy was very much
nationally oriented with little cooperation and coordination between countries. However the transition to a low-carbon
economy requires global cooperation and coordination. It has been estimated that in order to limit average global
warming to 2°C by 2100 with 50% probability, concentrations of CO2 should be stabilised at 450ppm by 2030 (IEA,
2009). In 2010, the concentration was around 389ppm and rising by 2ppm per year - representing an annual growth
rate of around 1.5% (IEA, 2009, Prins et al., 2010). The International Energy Agency (IEA) (2009) expects that at current
rates, CO2 emissions would continue to rise from 28.8Gt in 2007 to 40.2Gt in 2030. This is estimated to push average
global temperatures up by 6°C and result in CO2 levels of more than 1,000ppm. Most developing countries are currently
not major emitters of greenhouse gases (GHG), however the IEA (2009) expects that all of the projected increase in
CO2 emissions between now and 2030 will come from developing countries, mainly China, India and the Middle East
– and that most of the current industrially-generated stock of carbon in the atmosphere has been caused by advanced
economies, where most of the technological capability, know-how, human skills and financial resources reside to
mitigate climate change. Cambodia’s industrial sector has shown strong growth in the past decade. Among the leading
energy consuming industries, the garment sector is considered the greatest consumer, followed by the fabrication of
clay bricks for buildings construction, rice mills for processing paddy into polished rice, rubber production and the food
sector with particular emphasis on the production of ice for refrigeration. Industrial energy consumption is estimated to
total around 3.04TWh/year (MME, 2013) and at its present growth rate of 5.7% in terms of production, it can be expected
that energy consumption will grow steadily at an annual growth rate of 14.7% until 2030. All relevant sectors (garment,
rubber production, brick kilns, food processing, ice making and rice mills) have at least 20% energy saving potential and
brick kilns can potentially save up to 70% by changing the technology8.
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4 Latest Development and Deploy of New Technologies
The EDC intends to update the current system to an innovative smart grid with electrical metering, but for the initial stage,
handheld units and automatic meter reading (AMR) are used for recording the energy consumption for all customers.
Advanced metering infrastructure (AMI) is being studied for upgrading the system to become smart grid to enable
customers to monitor their energy consumption every single hour by accessing data from the internet and their mobile
phones.
5 Major Issues Impacting the Electric Power Industries
The key challenge for industrial development is the supply of stable electricity at competitive prices. Electricity demand is
estimated to increase by 142 to 182 megawatts on average per annum until 2025. In 2012, the electricity supply capacity
was 825 megawatts and provided all projects are completed as planned, the supply will reach around 2,500 megawatts
by 2020. Attracting more investment to the electricity sector is crucial to ensure a reliable electricity supply. In as much
as the supply issue is an urgent priority for the manufacturing sector, ensuring lower and competitive prices is equally
important in light of the country's relatively high prices vis-à-vis neighbouring countries9.
Establishment and Development of Industrial Infrastructure10
1. Monitor and direct energy supply to major production zones by ensuring the most sufficient and stable electricity
supply, which enables factories to plan their production effectively.
2. Implement and timely complete the planned construction of electricity plants to reduce the shortage of electricity
supply by 2020 including improvement of capacity and quality of transmission.
3. Review the forecast of long-term electricity demand and the energy development plan in line with the new vision for
economic and industrial development. Energy supply options are also to be reviewed in order to ensure adequate
energy supply capacity to major strategic industrial zones.
To further promote the implementation of the Industrial Development Policy’ (IDP) the RGC will implement four key
concrete measures to be achieved by the end of 2018. These measures are of great significance as they enable the RGC
to monitor the efforts and progress of the implementation of the IDP. The measures also serve as an indispensable basis
for ensuring that the vision, objectives and goals of the policy are realised.
8 http://e-library.moe.gov.kh/Doc/view/12062016003646.pdf
9 http://www.cambodiainvestment.gov.kh/content/uploads/2015/09/IDP-English-Version-FINAL1.pdf
10 http://www.cambodiainvestment.gov.kh/content/uploads/2015/09/IDP-English-Version-FINAL1.pdf
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Preparation and implement a plan to reduce electricity private providers) to the same unit price of USD16.40
tariffs for industrial and commercial purposes, including cents/kWh.
strengthening the reliability and expanding the coverage - Set different electricity pricing for day-time and
of the electricity supply: night-time industrial usage.
- Reduce the price of electricity directly purchased from - Expand the coverage of the electricity supply to all the
substations to USD12.6 cents/kWh. targeted industrial zones.
- Reduce the purchase price from the EDC in Phnom - Ensure reliability and confidence in the electricity
Penh, Kandal and Kampong Speu electricity system to supply by reducing the rate of electricity cut-off to not
USD16.5 cents/kWh. more than 12 times or 24 hours per annum.
- Reduce the purchase price from sub-transmission
lines of substations (including those of EDC and
The RGC has introduced the electricity tariffs reduction and price differentiation schedule for the industrial and commercial
purposes toward 2020 as in the table below.
Table 6: Electricity Tariffs Reduction and Price Differentiation Schedule
In accordance with Ministry of Mine and Energy’s Prakas No.0094 dated 24 February 2015, the Royal Government
Cambodia set out the tariff reduction plan for electric power from the National Grid for 2015-2020 as follows:
Tariff to be applied for year

Type of Purchase Unit 2015 2016 2017 2018 2019 2020
Electricity supply from National Grid
Purchase at High Voltage from Grid $/kWh 0.1270 0.1240 0.1240 0.1240 0.1240 0.1240
Substation
Purchase at Medium Voltage from Grid $/kWh 0.1290 0.1260 0.1260 0.1260 0.1260 0.1260
Substation
Electricity supplied by EDC in Phnom Penh and Takhmao
Industrial and commercial customers $/kWh 0.1770 0.1770 0.1670 0.1650 0.1630 0.1620
who are connected to MV at 22kV
Residents, governmental organisations, Riels/ 820 780 770 750 740 730
and embassy (>200kWh/month) kWh
Residents consuming between 51 to Riels/ 720 720 720 720 720 720
200kWh/month kWh
Residents not consuming more than Riels/ 610 610 610 610 610 610
50kWh/month kWh
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Table 6: Electricity Tariffs Reduction and Price Differentiation Schedule (con’t)
Tariff to be applied for year

Type of Purchase Unit 2015 2016 2017 2018 2019 2020
Electricity supplied by EDC in Provincial Towns and Rural Areas
Bulk sale from sub transmission line to $/kWh 0.153 0.1470 0.1450 0.1440 0.1430 0.1420
distribution licensee
Residents, governmental organisation, Riels/ 820 780 770 750 740 730
and embassy (>50kWh/month) in kWh
provincial towns
Residents, governmental organisation, Riels/ 820 790 790 770 760 750
and embassy (>50kWh/month) in rural kWh
areas
Residents consuming between 11 to Riels/ 820 790 610 610 610 610
50kWh/month in provincial towns and kWh
rural areas
Residents consuming less than 10kWh/ Riels/ 820 480 480 480 480 480
month in provincial towns and rural kWh
areas
Water pump for agriculture from Riels/ 820 480 480 480 480 480
9:00pm to 7:00am kWh
Electricity Supplied by Licensee and Sub Transmission Licensee
Sub transmissions licensee sale to $/kWh 0.1510 0.1470 0.1450 0.1440 0.1430 0.1420
distribution licensee
Residents, Government, and Embassy Riels/ 1,000- 800 790 770 760 750
(>50kWh/month) kWh 3,000
Residents consuming between 11 to Riels/ 1,000- 800 610 610 610 610
50kWh/month in provincial town and kWh 3,000
rural area
Residents consuming less than 10kWh/ Riels/ 1,000- 480 480 480 480 480
month in provincial town and rural area kWh 3,000
Water pump for agriculture from Riels/ 1,000- 480 480 480 480 480
9:00pm to 7:00am kWh 3,000
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Table 6: Electricity Tariffs Reduction and Price Differentiation Schedule (con’t)
Achievement of Tariff Reduction Plan and Electric Power Supply to Resident Consumers in 2017
Number of Residents and Tariff of Electrical Power Categorised by Capacity of Supply in 2017
Block of Consumption by Residential Consumers in kWh per month

101- 201- 1,001 -
Electric Supply (kWh) 0-10 11-50 51-100 200 1,000 2,000 >=2,000 Total
Phnom Penh And Takhmao
Number of Residents 116,942 193,369 70,076 92,199 124,200 7,170 2,173 606,129
Number of Residents (%) 51.20% 26.77% 22.03% 100%
Electrical Power Tariff per 610R 720R 770R
kWh
Province and Rural Areas
Number of Residents 241,147 902,268 312,543 152,398 90,401 7,564 3,480 1,709,801
Number of Residents (%) 14.10% 52.77% 33.13% 100%

Electrical Power Tariff per 480R 610R 770R in EDC areas and 790R in areas of
kWh distribution licensees
Figure 11: 338MW Lower Stung Ressei Chrum Figure 12: 10MW Solar Farm Project
Hydropower Project
CHINESE TAIPEI
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Area: Population: GDP:
36,009
km2
23.57
million
USD543.2
billion
Currency: Installed Capacity: Percentage of Population
New 41.9
Electrified:
Nearly 100%
Taiwan GW
Dollar
(NT$)
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1 General Information
Table 1: Power Demand by Sector
Sector Total Power Consumption Projected Change (%) Projected Power

as of 2017 (MWh) (2017/2018) Consumption as
of end 2018 (MWh)
Industrial 121,238,873 -2.74 117,913,909
Residential 44,810,403 0.34 44,963,119
Commercial 33,561,460 0.04 33,575,234
Others 17,602,749 -0.17 17,572,841

Note: The Projected Power Consumption as of end 2018 has been estimated in October 2016
Energy Policy
The energy policies call for 50% of energy production to be derived from natural gas with a further 30% from coal and
20% from renewable sources by 2025. The total capacity of renewable energy will be 27,423MW by 2025. This will be
derived from land-based wind power, offshore wind power, solar photovoltaic, geothermal, biomass and fuel cells.
On June 15, 2015, the Legislative Yuan passed the Greenhouse Gas Reduction and Management Act. The law calls
for a 50% reduction in the greenhouse gas emissions by 2050 as compared to greenhouse gas emissions in 2005.
Taiwan Power Company (Taipower) is conducting annual long-term power development programmes to comply with
the Energy Policy.
Supply and Demand of Primary Natural Resources
a) Conventional hydro power

The installed capacity of hydro power plants in the region was 2,089MW in 2017.
b) Other Forms of renewable energy
The installed capacity in other types of renewable energy, including wind power, photovoltaic systems and biomass,
was 2,703MW in 2017.
c) Nuclear energy
The installed capacity of nuclear power plants in the region was 5,144MW in 2017.
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The electricity market structure is based on one state-run integrated power company (Taipower) that consists of the
generation, transmission, distribution and sale of electricity. While electricity generation is currently open to Independent
Power Producers (IPPs) that operate combined heat power stations and renewable energy power generators, all operators
are required to sell the energy they produce to Taipower on a wholesale basis. They are currently not allowed to sell
directly to consumers.
Figure 1: Electricity Market Structure (Before)
Taipower Company
Vertical Integrated Independent Power Producer
Power Company (Public Utility) • 9 IPPs, 7,710MW
• renewable energy
Power Grid
Taipower Generations
• existing power plants (Transmission & Distribution)
(31,651MW) Self-use Power
• power plants in constructions Generation Equipment
• approved power plants for (cogeneration, renewable energy,
construction and others)
Electricity Supply Obligation
Common Users in Operation Regions

(Electricity Price Regulation)
(Operation regions : Taiwan ` Penghu ` Kimen ` Martzu)
In an effort to develop clean energy and increase the share of low carbon energy from electricity generation system, an
amendment to the Electricity Act was made by the Legislative Yuan on January 11, 2017 and soon came into force after
its promulgation by the President. The amendments call for the following changes to the Taiwanese power system and
market:
a) Within 1 to 2.5 years after the adoption of the amendments:

• Approving renewable construction and wheeling and direct supply
• Approving power generation, with the production shall be solely sold to Taipower
• Appoint a regulator
• Unbundle Taipower
• Provide customers with the option to choose renewable energy
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b) Within 6 to 9 years after the adoption of the amendments:

• Taipower will be transformed into a holding company with two subsidiaries: one for power generation and the
other for transmission and distribution and sales.
c) Achieving a nuclear-free homeland by 2025
Figure 2: Electricity Market Structure after Recent Amendments
Electricity Regulatory Electricity Tariff Electricity Mediation Electricity Reliability

Authority (ERA) Committee Committee Committee
Generation Renewable energy Existing traditional New traditional

Sector generation company generation companies generation companies
wheeling wholesale wholesale wholesale
T&D
Sector
Taipower (Transmission and distribution division)
Direct
supply
Retail Renewable energy Taipower

Sector retailing company (Retailing division)
price is not
regulated price is
regulated
Users (fully release the users’ power purchasing choices)

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Taipower’s planning, construction, and operation management will be governed under the relevant regulations and laws,
including:
a) The Electricity Act
b) The Renewable Energy Development Act
c) The Energy Management Law
d) The Atomic Energy Law and its related regulations
e) The Nuclear Materials and Radioactive Waste Management Act
f) The Nuclear Safeguards Agreement
g) The Government Procurement Act
h) The Act Governing the Management of State-Owned Enterprises
i) The Budget Law
Electricity Consumption or Demand in 2018-2023 and Expected Annual Growth Rate in the Next Decade
Table 2: Electricity Demand Forecast (2018-2023)
Year Power Demand*
GWh Growth (%)
2016 (r) 212,531.3 2.9
2017 215,367.0 1.3
2018 218,052.7 1.2
2019 220,990.2 1.3
2020 224,128.9 1.4
2021 227,351.9 1.4 *Power Demand excluding cogeneration

Note: (r) refers to real value
2022 230,652.3 1.5 According to the TPC Long-Term Load
Forecast Report, future electricity demand
2023 233,997.2 1.5 is expected to grow by an average 1.4% per
year over the next decade (2018-2027).
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Tariff Structure
To achieve the government’s policies concerning energy conservation and carbon reduction, Taipower offers different
electricity prices as an incentive to curb load demand during peak hours and to promote energy conservation according
to the following rate structures:
Table 3: Tariff Structure
Classification Structure
Flat Rate Lighting & Power Service Flat Demand Rates
Meter Rate Lighting Service (Non–Commercial) Inclining Block Rates

(Non-TOU)
Low Tension
Meter Rate Lighting Service (Commercial) Two-Part Rates (TOU)
Service Three-Part Rates (TOU)
Two-Part Rates(Non-TOU)
Power Service
Three-Part Rates (TOU)
High Tension Service Two-Part Rates
Extra High Tension Service Two-Part Rates

Note: The two-part rate structure under Meter Rate Lighting Service is comprised of a fixed monthly customer charge and an energy charge for
kWh usage
Total Amount of Energy Consumption by Sectors
Table 4: Energy Consumption by Sectors
8.1% Sector Total Power Consumption as of 2017 (MWh)

Industrial 121,238,873
15.5% Residential 44,810,403
Commercial 33,561,460
Others 17,602,749
20.6% TOTAL 217,213,486

55.8%
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Electricity Subsidies among Generation, Transmission and Distribution Sectors
Taipower offers preferential rates for the following customers and services: Public Street Lighting, Public Waterworks,
Electric Railways, Schools, Agricultural users, Orchid Island Residential users, Welfare Organisations and the Disabled.
In order to develop renewable energy, Renewable Energy Development Act was promulgated in 2009. The core of the
Act is a Feed-in Tariff system (FIT), and the formation of a committee to decide the FIT calculation formula and to revise
tariffs annually after referring to technical advancements, cost variations, goal achievement status and more.
Total Installed Capacity of Generation by Fuel Types
Table 5: Total Installed Capacity of Generation Table 6: Total Energy Production by Fuel Type
(in MW) (in MWh)
10.3% 6.2% 1.5%

5.1% 4.4%
7.9%
12.2% 13.5% 2.6%
36.9%
27.3%
36.1% 36%
Item Installed Capacity (MW) Item Energy Production (MWh)

P.S. Hydro 2,602 P.S. Hydro 3,281,640
Oil 3,323 Oil 10,033,893
Coal 11,497 Coal 83,313,663
Gas 15,245 Gas 81,184,923
Nuclear 5,144 Nuclear 30,461,101
Renewable 4,322 Renewable 11,599,044
TOTAL 42,133 Cogeneration 5,918,870
TOTAL 225,793,134
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Table 7: Structure of Installed Generating Capacity by Producers (utilities and IPPs)
Installed Capacity (MW) % Energy Production (GWh) %

Taipower 32,217 76.5 174,043 77.1
IPPs 9,916 23.5 51,750 22.9
TOTAL 42,133 100.0 225,793 100.0
List of Power Plants by Fuel Types
Figure 3: Power Plants by Fuel Types
Installed Capacity : 42,133MW
Renewable
– 2,112/5%
Nuclear
– 5,144/12.2% Renewable LNG
Purchased – 2,209/5.2%
– 9,916/23.5% – 4,610/10.9%
LNG
– 10,635/25.2%
Pump Storage
Hydro
– 2,602/6.2%
Coal
Oil
– 3,097/7.4%
Coal – 3,323/7.9%
– 8,400/19.9%
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List of Power Grid by Major Voltage Levels
Table 8: Transmission and Distribution Lines
Transmission & Distribution Lines Ckt-Km

345KV 4,006
Transmission 161KV 7,109
69KV 6,311
Distribution 364,947
Long-Term Power Development Plan to achieve a renewable energy capacity of 4,332MW by

2028. This will include 871MW from solar photovoltaic
The government has announced the following goals for generation, 513MW from land-based wind power, 970MW
power generation by 2025: from offshore wind power, 100MW from geothermal
• 50% to be derived from natural gas; energy sources and 1,878MW from hydro power.
• 30% to be derived from coal; and
• 20% to be derived from renewable energy. During the preparation of the long-term power
development, the company focuses on renewable energy
Upon achieving these goals, the capacity of renewable and gas-fired combined cycle units. Construction schedule
energy will be 27,423MW in 2025. This total should consist for gas-fired combined cycle units is shorter than the
of 20,000MW produced by solar photovoltaic generation construction schedule for coal-fired units. Consequently,
1,200MW from land-based wind power, 3,000MW from coal-fired units are considered the company’s last option.
offshore wind power, 200MW from geothermal energy
sources, 813MW from biomass generation, 2,150MW from A number of the current operating facilities will be retired
hydro power and 60MW from fuel cells. between 2017 and 2028. These retiring facilities (including
the three operating nuclear power plants) account for
To meet these goals, Taipower implemented the “201710 about 14,750MW of generation capacity. In order to replace
Long-Term Power Development Programme” in January these aging facilities, Taipower has planned several new
of 2018. Based on this initiative, the company is planning power units. The units are currently under construction
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or renovation and located in Linkou, Shenao, Talin and

Figure 4: “Spiderman” on a Transmission Tower
Tungshiao. Moreover, the government has approved
additional units at Tatan Power Plant. The total generation
capacity of these facilities is expected to be 10,403MW.
Environmental issues and the “Not in My Backyard”

(NIMBY) phenomenon have led to repeated delays in the
construction schedules of some new power plants. The
affected planning schedules of some new power units
include Tungshiao units 4-5, Hsinta units 1-3, Hsiehho unit 1
and Taichung units 1 and 2. If these projects are completed
on schedule, they will become operational after 2022 and
will provide an additional generation capacity of 11,928MW
by 2028.
Long-Term Power Transmission and Substation Planning
In order to meet network reliability and stability

requirements, Taiwan Power Company (Taipower) has Long-Term Distribution Planning
developed the seventh transmission and substation plan
from 2010 to 2021. Its total transmission line length will To strengthen its distribution network, Taipower launched
reach 1,966ckt-km and total transformer capacity will a new distribution plan in 1987. The plan focused on
reach 18,554MVA as well. In addition, the total investment various distribution engineering projects that have
of the plan is NT$236.9 billion or about USD7.84 billion. targeted areas such as expansion, improvement, feeder
automation, and underground work. Upon completion of
In order to meet region load requirement, Taipower has the plan, in 2011, distribution network became far more
developed the first north region transmission and substation robust. However, load demand continues to increase
plan from 2016 to 2026. Its total transmission line length and the latest assessment found that the annual growth
will reach 24.08ckt-km and total transformer capacity will rate for long-term distribution load will range from 0.83-
reach 360MVA. In addition, the total investment of the 1.80% in each of the following 10 years. In order to meet
plan is NT$5.51 billion or about USD0.18 billion. Due to this demand, Taipower will continue to produce annual
the continued growth of load, Taipower has been planning assessment reports on load forecasts and regional power
new transmission lines and substations. supply capacity, and to pursue new annual improvements
and expansion projects for the distribution network.
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4 Carbon Emission Reduction
The Policy of Renewable Energy and Major Regulatory Mechanism of Renewable Law
The main mechanism of the Renewable Energy Development Act is internalising the environmental cost of fossil-
generated power through the Renewable Energy Development Fund, which emphasises the framework of polluter-
pays principle. Utilities will be obliged to render payment for an established fund and the charge may be reflected
through the electricity fare. Grid utilities should supply grid connection for IPPs with a fixed tariff purchase of 20 years.
Renewable energy electricity purchased by utilities could be subsidised by the fund with the transaction reviewed every
year. According to the announcement by Bureau of Energy, MOEA in May 2015, the national target of renewable energy
installed capacity is 17,250MW by 2030.
The Role of Public Utility in Renewable Energy Law
The role of Public Utility is to act as the representative of power purchasing under the Renewable Energy Development
Act. According to the Act, the government has to set the price of various renewable resources, force the utility to supply
grid connection, and purchase the power production of renewable energy. The increased costs of buying renewable
power will be passed on to consumers.
Production of Renewable Energy
Table 9: Production of Renewable Energy by Various Table 10: Renewable Energy Purchased in 2017
Resources in 2017
Resources MWh
Renewable Energy 2017 Production
Hydro 921,302,299
(MWh)
Wind 951,602,170
Hydro 8,745,935,481
Solar 1,596,763,302
Wind 1,697,375,839
Biomass 3,125,038
Solar 1,620,906,041
Landfill Gas & Garbage 2,500,548,708
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The electric power producers in the region, including

Figure 5: Ma’an Unit of Tachiachi Hydropower Plant
the state-owned power enterprise (Taipower), private
companies, the Independent Power Producers (IPPs) and
Co-generators with whom Taipower has been integrating
power generation, transmission and distribution systems,
are obliged to these domestic power supply requirements.
As a state-owned enterprise and a part of the government
system, Taipower has the responsibility for assisting the
government to achieve the targets of carbon reduction.
Power production is dominated by thermal power units, and
consequently, energy producers are a primary contributor
to greenhouse gas emissions. The role of power producers
in achieving reductions in emission is crucial.
Figure 6: The Renewal of Linkou Power Plant
Environmental Challenges of Electricity Supply and

Solutions Taken
In response to climate change, the government has

prioritised its responsibility to protect the earth, slow down
climate change, and reduce emission of greenhouse
gases (GHG). The “Greenhouse Gas Emission Reduction
and Management Act” was implemented on July 1, 2015,
providing a legal framework for an array of response
measures to climate change. The Act sets a target of
reducing emissions by 50% by 2050 as compared to 2005
levels. Moreover, it sets periodic five-year reduction targets.
It also offers economic incentives in order to gradually
establish a cap and trade system as well as to promote
mitigation, adaptation, and green growth measures.
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Plans and Strategies to Reduce Greenhouse Gas Emissions
Taipower is a state-owned enterprise which must abide by the national policy of implementing power development that
results in carbon reduction. Electricity consumption in the region has continued to increase with the island’s economic
growth. Since the development of non-carbon and low-carbon energy is limited, Taipower must implement multiple
strategies to maintain electricity supply stability and at the same time, achieve carbon reduction goals. To effectively
manage and accomplish its GHG reduction goals, Taipower adopted nine strategies and prepared 27 action plans in
May 2011 (see table 11). Taipower is making an effort to strengthen the development of energy conservation and carbon
reduction technology and improve communications between the power supply-side and the power demand-side of its
operations. Through these measures, Taipower anticipates that it will successfully reach the carbon reduction goals set
by the government.
Table 11: The Master Plan of Energy Conservation and Carbon Reduction Strategies and Action Plans
Strategy Action
Strategy 1 : Amplification of low-carbon energy 1. Increase the installed capacity of renewable energy
2. Maintain an appropriate proportion of natural gas
generation
3. Reduce carbon emissions from electricity generation
systems
Strategy 2 : Upgrading the efficiency of existing 4. Upgrade the efficiency of existing thermal units
generation units 5. Operate nuclear power generation safely and maintain
stability
Strategy 3 : Upgrading the efficiency of the 6. Improve operational efficiency of transmission and
transmission and distribution systems distribution systems to reduce line loss
7. Improve transmission and distribution facilities
Strategy 4 : Strengthening R&D in power grid 8. Construct a high-quality power grid for integrating
technology distributed energy sources
Strategy 5 : Strengthening R&D in power supply- 9. Promote R&D in technologies for clean coal power
side technology generation and fuel cell power generation
10. Develop technologies for carbon capture, storage,
and reuse
11. Conduct R&D in technologies for new energy power
generation
12. Assess the introduction of a new energy
demonstration system
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Table 11: The Master Plan of Energy Conservation and Carbon Reduction Strategies and Action Plans
Strategy Action
Strategy 6 : Developing and trading carbon credits 13. Invest/participate in domestic and foreign carbon
reduction projects
14. Purchase domestic/foreign GHG emission reduction
credits
Strategy 7 : Implementing demand-side 15. Develop infrastructure plans for AMI
management 16. Promote demand-side electric energy management
measures
17. Promote reasonable tariff schedules
18. Study demand-side electrical energy management
service techniques
Strategy 8 : Enhancing internal energy 19. Control internal productive and non-productive
conservation energy conservation
20. Promote green buildings and in-house energy
conservation
21. Promote green IT and teleconferencing
22. Establish an energy conservation service team to
provide energy conservation technology diagnosis
and consultation services
Strategy 9 : Reinforcing the promotion of energy 23. Use the media to promote energy conservation and
conservation and communications carbon reduction
24. Hold energy conservation and carbon reduction
promotion campaigns
25. Promote energy conservation and carbon reduction
techniques and methods
26. Conduct energy conservation and carbon reduction
seminars
27. Conduct energy conservation and carbon reduction
raffles
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b) The promotion of high-efficiency electric appliances,

Figure 7: Solar Panels in Dongjiyu of Penghu Island
especially those certified with energy-efficiency rating
or energy-saving labels.
c) The promotion of energy conservation by the general
public through education and the dissemination of
energy saving information.
Figure 8: The Renewal of Talin Power Plant
Policy on Energy Conservation and Efficiency
a) The implementation of seasonal rates for almost

all classes of customers, an inclining block rate for
residential and commercial customers, and time-of-
use rates for residential, commercial and industrial
customers.
5 Advanced Metering Infrastructure (AMI) /Smart Grid Deployment
Latest AMI Installations and Smart Grid Projects
The modularised meter mechanism designed by Taipower consists of metering unit, utility side (Route A), and residence
side (Route B) communication modules. A demonstration project that includes both Route A and Route B was completed
at the end of 2017 with a total of 1,000 households deployed in five different sites. Residents of the above demo project
can view the electricity usage per minute and calculate trial balance under different electricity tariffs (e.g. step or TOU)
from cellular phone or in-home display. It is expected that by receiving real-time electricity usage information, users can
be more aware and spontaneously reduce their energy use in order to reduce electricity costs. An accumulated number
of 200 thousand, 1 million, and 3 million meters with communication to the utility are expected to be deployed by the
end of 2018, 2020, and 2024, respectively. After the deployment and benefit analysis has been approved, 600 thousand
meters will be deployed every year. Total evaluation of the whole AMI system will be conducted by the end of 2029.
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Challenges Faced and Solutions Taken AMI Roll-Out Plan
Since the building types and density are complex, many Advanced Metering Infrastructure (AMI) is one of the
meters are installed in the basements or communication strategies that Taipower is pursuing in order to support
dead zones, resulting in poor communication signals demand-side management, with the aim of reducing
due to shading. To solve the issue, Taipower has drawn electricity consumption by consumers and increasing
up an appropriate AMI functional specification and the efficiency of energy utilisation. By 2013, Taipower
established a communication technology evaluation has installed sufficient High-voltage AMI meters enabled
mechanism. Furthermore, to accommodate government’s to monitor 60% of electricity usage. In addition, a project
policy of cultivating the domestic AMI communications targeting Low-voltage Smart Meters according to “Project
industry and the rapid progress of AMI’s communications for Low-voltage Smart Meter” was approved by Executive
technology, different communications technologies Yuan in September 2016 along with Smart Grid Master
must be compatible with the meters of different brands, Plan in February 2017. These projects will entail Taipower
Taipower has designed the next-gen smart meter to be plans to install AMI meters for 200,000 low-voltage users
modularised with pluggable communication modules. (households) by the end of 2018. A total of 1 million users
The goals of reducing deployment and O&M budgets, and are targeted by 2020 and 3 million by 2024. By that time,
upgrading efforts are expected to be achieved in the future. Taipower may reach 82% of electricity consumer.
Taipower has finished establishing functional and interface
AMI Offerings to Customers and its Benefits
specifications of the metering units, communication
system, and meter data management system (MDMS).
The adoption of AMI will provide customers with the
If they pass the related testing tools to have performance
following benefits:
and conformance checked out, the above main parts can
a) Improved power savings
be procured and deployed separately. To effectively solve
AMI meters will help customers easily understand
the communication problem, Taipower has applied for an their power usage by giving them faster access to
840 MHz radio frequency band dedicated for utilities. It is their usage data. This will allow customers to practice
proven that the above measure can adequately enhance power saving habits and to identify old appliances for
communication quality and transmission length and replacement.
reduce the number of medium communication devices b) Decreased customer inconvenience
installed such as repeaters or data concentrator units. AMI meters can automatically read, record and report
on meter data. This will allow the company to collect
crucial data without disturbing customers.
c) Speedy restoration of service following outages
AMI meters can return outage information to Taipower’s
outage management system. This mechanism will
help maintenance staff determine the outage area
and allow faster response times. This will lead to fast
service restoration and reduced power outage times
for customers.
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C EPS I 2018
According to previous customer satisfaction surveys, electricity costs, power quality, and the load characteristics are
among customers’ main concerns. Taipower is therefore looking forward to offering some energy-saving methods to
their customers. Taipower may be the first to build a big data platform for customer services, which contains multiple
data sources, including high and low voltage AMI (Advanced Metering Infrastructure), NBS (New Billing System), weather
information and others. These data can be utilised for research on customer services and energy saving issues.
Applying behavioral science principles, combined with big data analysis technology, Taipower may be able to offer more
convincing messages to make customers change their power usage behavior - for example, comparing similar users’
power usage, and providing some recommendations for them. This may encourage users to adjust their behavior. Big
data analysis can also be applied to search potential customers for demand response programmes. Users’ participation in
the programmes can be increased while maintaining demand response and sufficient energy efficiency. Users’ electricity
costs can also be reduced.
Taipower R&D units are using big data analysis technology to build different applications, such as user interactive energy-
saving platform, behavioral science and user interaction system, demand response measurement and verification system,
multi-functional demand response information system and more. These systems provide various user interfaces and
information disclosure. These innovative applications may increase users’ participation and enhance the user experience,
enable customers to adjust their power usage behaviour to reduce the system peak load, practicing energy saving and
carbon reduction. The customer satisfaction may be raised by these efforts, and the relationship between Taipower and
customers can be improved.
6 Latest Technologies and Innovations Deployed
Linkou Power Plant Renewal Project Substation Automation
Three 800MW ultra supercritical coal-fired units are The secondary substations (S/S) used by Taipower have
installed on the plant site. The commercial operation been completely automated (SCADA) for a long time. Their
dates for Linkou Unit 1 and Unit 2 are on Oct.6, 2016 and functions are controlled (DDCS) and their data is collected
Mar. 24, 2017 respectively, and the commercial operation remotely (RTU).
for Linkou Unit 3 is scheduled for July 2019.
As the volume of renewable energy increases, potential for
Talin Power Plant Renewal Project
reversed flow of power into the grid and equipment is also
growing. At the end of July 2017, Taipower has completed
Two 800MW ultra supercritical coal-fired units are the first
a double-direction meter replacement project. To develop
to be installed on the plant site. The commercial operation
a smart grid in the near future, Taipower will continue to
date for Talin Unit 1 is on Feb. 13, 2018, and the commercial
develop and utilise integrated automation systems (DDCS
operation for Talin Unit 2 is scheduled for July 2018.
& FDCS).
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C EPS I 2018
In addition, the IEC61850 Substation/Switch Specification, Taipower has installed small-scale battery energy storage
which has been adopted by the power supply department, as microgrids in some rural areas. It functions as emergency
is used to verify system integration and perform backup power, smooths the curve of power output for
compatibility verifications on the equipment from each renewable generation, reduces peak load and forecast the
manufacturer in order to achieve system standardisation. performance of battery energy storage by data collection.
In the future, these standards will be integrated with the Taipower is considering MW-scale battery energy storage
distribution feeder automation system (DDCS & FDCS) as a good potential to be deployed in some small islands.
during the development of a smart grid.
The Air Pollution Control Equipment Planning for Ultra-
Feeder Automation Supercritical Steam Power Units
The twin factors of increased use of renewable energy and According to the Rankine Cycle, efficiency may be
load growth have demanded the expansion of Taipower’s increased through higher steam pressure and temperature.
distribution system. As part of this expansion, Taipower has In the past, most of Taipower’s steam turbine units were
undertaken the automation of its distribution system. This subcritical, meaning that the efficiency of these units was
has principally been accomplished through the adoption about 38%. In contrast, newer units at the Linkou and
of ICT equipment in switch construction. By the end of Dalin Power Plants are of the ultra-supercritical type. In
2017, the company has automated 23,087 switches. consequence, their design efficiency is as high as 44.93%
and the updated unit efficiency is at least 6.9% higher than
As the technology that underlies the distribution automation that of the company’s older units (Table 12).
system becomes more mature, the capacity of domestic
manufacturers to produce key modules and technologies As the efficiency of units is improved, the emission intensity
have steadily increased. Future developments in the per unit of CO2 will decrease from 0.975kg/kWh to 0.789kg/
automated monitoring system will include the integration kWh – a decrease of about 19%. The coal consumption per
of 400 new, automatic circuit breakers. Additionally, the kWh, will also be reduced from 0.434kg/kWh to 0.348kg/
distribution system is projected to install more than 28,000 kWh per unit, based on the new unit design coal calorific
automated switches by 2030. value of 5,500kcal/kg. This will reduce the coal usage
rate by about 19.8%. The new units also contribute to air
pollution reduction, greenhouse gas reduction and cost
reduction.
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C EPS I 2018
Table 12: Comparison of Old and New Units at Linkou Power Plant
Item Old New Percentage Difference

Efficiency of unit 38% 44.93% 6.9%
CO2 emission intensity, 0.975 0.789 -19%
kg/kWh
Amount of coal consumption, kg/kWh 0.434 0.348 -19.8%
Taking Linkou’s ultra-supercritical units as an example, manufacturers were required to adopt state-of-the-art air
pollution control equipment at the initial stages of design. The units are equipped with the most advanced Seawater Flue
Gas Desulphurisation (SWFGD), Low NOx Burners, Selective Catalytic Reduction, SCR, and Fabric Filters, FF etc. Under the
same conditions of generating capacity, the environmental pollution is greatly reduced and the requirements established
by environmental protection agencies can be achieved, as shown in Table 13.
a) FGD : The use of seawater absorbing and oxidising to remove sulfur oxides in flue gas, without the use of fresh
water, results in improved use of water resources.
b) SCR : NOx emissions are reduced and the NOx removal rate reaches 84.7%.
c) FF : Removes particulate matter from flue gas with an effective collection efficiency of up to 99.917% in
the flue gas.
Table 13: Emission Standards for Flue Gas
Control Programme Air Pollutants Tougher standards EIA Contract

Emission Standards Announced by New Commitment Specifications for
for Power Facilities Taipei City New Unit
Announced by the
EPA
SOX Hourly Average 60 30 30

23
(ppm) Annual Average - - 28
NOX Hourly Average 70 30 30
23
(ppm) Annual Average - - 24
PM Hourly Average 20 31 20 10
(mg/Nm3) Annual Average - - 12
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C EPS I 2018
automatically. Furthermore, with the information on In-

Figure 9: Overhaul of Power Plant
Building Display (IBD), power consumption status can be
visualised so that users will gain awareness about electricity
saving and adjust their behaviour to reduce peaks of load.
At present, BEMS & ADR mechanism has been introduced

into the buildings in TPRI Shulin Campus and Fengshan
Branch. Electric power usage may be reduced up to 20%
during the specified periods (peak hours). Electricity charge
saving rate for a year is about 10% after the implementation
of automated demand response. Operation setting is
adjusted according to the actual situation to achieve
precise demand control and demand side management
innovation.
Smart Technologies
Latest Development and Deployment of Automated
Demand Response Taipower’s main goal in implementing smart grid is to
introduce international standards for the interoperability
Automated demand response mechanisms are crucial of the information and communication among dispatch
to support the increase pressure of power development centres, power plants, substations, distributions and DERs
and the low operating reserve capacity at peak periods. (Distributed Energy Resources). TPRI of Taipower has
Information on customers electricity usage and the implemented a pilot IEC 61850 based substation in Shin-
application of advanced ICT and smart energy management She and a pilot IEC 61400-25 based wind turbine plant in
technology will play important roles in demand side Da-Tan. An IOT based IEC 61850 XMPP Cloud Platform for
management, energy saving and carbon reduction issues. DER management system is also being implemented.
The Taipower Research Institute introduced Energy

Information and Communication Technology (EICT),
integrated corporate network (Intranet), Building Energy
Management Systems (BEMS) and Automated Demand
Response (ADR) to build a test-bench for both hardware
and software. These communication and management
technologies are compatible with international standard,
OpenADR 2.0. With the pre-arrangement through Web/
APP interface, electrical equipment may be modulated
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C EPS I 2018
Battery Storage
With an aim of increasing the ratio of renewable energy to the total power generation to 20% in 2025, Taiwan Power
Company has been actively promoting solar power generation and wind power generation. The Taiwan Power Research
Institute (TPRI) has conducted energy storage demonstration experiments for smoothing renewable energy generation
and controlling peak power demand. In order to achieve these goals in May 2016, TPRI introduced an all vanadium redox
flow battery’s energy storage system from Sumitomo Electric Industries Ltd. This 125kW/750kWh system was installed at
the Shulin branch of TPRI in February 2017. In addition, 250kW/400kWh container type lithium-ion battery energy storage
system from local company will be constructed in this area in 2018.
Figure 10: Energy Storage System in TPRI (Vanadium Redox Flow Battery and Lithium-Ion Battery)
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C EPS I 2018
7 Major Challenges and Transformation Affecting the Electricity Supply Industry
One of the main issues Taipower is concerned about is renewable energy interconnections on the distribution system
causing voltage deviation. In order to maintain the power system’s stability, Taipower needs to limit the interconnection
of renewable energy when necessary. One of the solutions is to encourage the renewable energy applicants to install a
smart inverter which can modify power factor and maintain the voltage within a normal range.
Taipower has adopted the isolation principle for its information and Industrial Control System (ICS) networks in order to
strengthen information and communication security. By establishing the smart grid system, Taipower implements new
systems such as Advanced Distribution Management System (ADMS) and Meter Data Management System (MDMS). In
consequence, Taipower will face higher cyber security risks from data leakage and cyber attacks to the control system.
The occurrence of these types of events could have significant impacts. In order to mitigate these risks, Taipower will
implement an Intrusion Detection System (IDS) in its programme-controlled network, establish an important system
classification, and build baselines for use in the early detection of abnormal activity. The company will also improve its
immediate handling capacity.
Other Related Activities/Initiatives (e.g. Sustainability, Research and Development, Customer Services,
8
Communication and Branding)
Taipower has established widely-distributed service bases to allow customers to conveniently file applications and
receive application and consultation services. Each of these service offices is also responsible for the construction and
maintenance of power supply lines within its service area. In order to increase the ease of direct communication with
customers, Taipower has initiated a diverse range of access channels, such as a customer service centre telephone
hotline (the 1911 customer service hotline), an online service counter, and the Taipower e-Counter App. These initiatives
provide customers with a series of mechanisms for quick access services.
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FRENCH POLYNESIA C EPS I 2018
Papeete USD5.623
billion
281 MW
4,167 Currency:
98%
km 2
CFP
Population:
France
(XPF)
0.270
million
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C EPS I 2018
Table 1: Total Power Consumption by Sector
Projected Power
Total Power Consumption Consumption as of end Projected Change (%)
Sector as of 2014 (MWh) 2015 (MWh) (Year 2015/Year 2014)
Industrial 276,521 278,180 +0.59%
Residential 209,039 209,489 +0.22%
Commercial 105,322 105,988 +0.63%
Total 590,882 593,658 +0.47%
National Energy Policy Supply and Demand of Primary Natural Resources in

French Polynesia
Since the oil crisis of 2008 and the economic and tourism
recession which followed, the government of French The main primary natural resources in French Polynesia
Polynesia has promoted to the public utility and private are hydro and solar. Hydropower provides almost 30%
investors a diversification of technical solutions for of the total energy produced and solar photovoltaic (PV)
electricity production. accounts for almost 4%.
The government also supports efforts by the public Since the introduction of Renewable Energy Laws in 2009,
utility to educate consumers on how to manage their the number of solar PV projects have increased and will
energy consumption and to this end, in 2009 introduced reach a target of 30% of peak demand over the end of
legislation aimed at providing customers with incentives to year 2015 which could contribute to 5% of total energy
modify their usage behaviour. produced. PV producers connected to the network already
reach more than 22MW by the end of 2015.
For the past five years, the different governments have
worked on laws aimed at reaching 50% of electricity
production through renewable energy sources by 2020.
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C EPS I 2018
Overview of Electricity Market Structure • Industrial users: Represents less than 1% of customers
who consume more than 47% of the energy
In French Polynesia, the power industry supplies electricity distributed. The bulk consumers are public services
to a population spread over more than 30 islands in an area such as hospitals, the tourism industry and hotels of
as big as Europe in the middle of the Pacific Ocean. There Tahiti and other islands, the mass distribution sector
are two main sources of power production, namely diesel and the food and beverage industry.
power plants and hydropower plants. Electricity of Tahiti • Commercial users: This category accounts for 11% of
(EDT) and its subsidiary Marama Nui operate the two main consumers and 17% of the energy delivered by EDT.
diesel power plants in Tahiti as well as the island’s network Commercial customers consist of public services,
of micro hydropower plants. Hydro accounts for 30% of shops, hotels and restaurants. It also includes public
production and the remainder comes from diesel. lighting with specific tariff rates.
TEP is the company responsible for transmitting energy Since 2008, tariff rates have increased several times as a
produced from remote valley hydropower plants to the result of increases in fuel prices and fluctuations in the US
main consumption zone around the town of Papeete dollar exchange rates. As a result of these developments,
and along the coastal area where most of the population EDT has promoted a ‘fair consumption policy’ for its
stands. consumers. From 1 March 2015, with the return of
moderate fuel prices on spot markets, EDT was able to
EDT operates through a concession contract for the lower electricity tariffs by 4%.
distribution and sale of electricity for Tahiti and 19 outer
islands. It is also responsible for managing the grid in order
to maintain quality and reliability of the energy supply
The Service des Energies (S.D.E) is a government department
either through its own production power plants or through
in charge of regulating the power sector and controlling
supply contracts with independent power producers (IPP).
electricity tariffs and power generation projects. All power
generation projects over 100kW must be validated by an
The electricity market is divided into three categories:
energy commission managed by the S.D.E.
• Domestic users: Around 87% of customers consume

The S.D.E is also responsible for verifying that EDT’s
35% of the energy delivered via the grid, which
activities comply with the terms and conditions of its
technically can be considered as ‘rural’. The average
public service contract.
consumption is roughly 260kWh per month and
until 2008 increased at an annual rate of around
Each year, a detailed report on EDT’s activities is submitted
2%. Since 2010, the growth rate has declined due to
to the government, including an extensive presentation
the economic crisis and the dynamic development
of its accounting situation. The government examines the
of distributed power production with individual PV
electricity tariff rates in March each year.
systems.
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C EPS I 2018
Electricity Consumption or Demand in 2015 - 2020 processing costs to supply energy to the public, from
and Expected Annual Growth Rate in Next Decade production costs to commercial costs. The formula is as
follows: PREF = E + T + ACE:
In 2014, total consumption stood at 591GWh.
The projected electricity consumption for the future is: • E = Price per kWh for primary energy used (fuel,
hydroelectricity, renewable energy).
2015: 594GWh +0.5% • T = Price per kWh for the transportation of energy
2016: 602GWh +1.4% between power plants to substations of the distribution
2020: 630GWh +6.06% and the end of the current decade grid.
The Amount of Electricity Exported and Imported (in • ACE = all other expenses, including for sales,
MWh) as of end 2014 distribution grid costs etc.
As EDT operates only on non-interconnected electrical The different levels applied for each term of the formula are
grids on islands there is no import or export of electrical reviewed by contract every fifth year by the government
energy. and the utility.
Tariff Structure of French Polynesia
The government and EDT negotiate the value of each term
The tariff structure is composed of 11 different rates, based according to the cost of living index, the technical yield
on a reference rate, with five main classifications, namely of networks and the total consumption and growth in the
residential, industrial, commercial, street lighting and last five years. Tariff rates are made public after they are
pre-payment (used for remote areas). approved by the local government through a ministerial
council meeting.
The electricity reference rate, known as ‘Pref’ follows
a mathematical formula which includes the different
Total Amount of Energy Consumption by Consumer Sector as of end 2014
Table 2: Total Energy Consumption Based on Sectors
Sector Total consumption Percentage (%)

Industrial 276,521 46.7%
Residential 209,039 35.5%
Commercial 105,322 17.8%
Total 590,882 100%
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C EPS I 2018
Electricity Subsidies among Generation and T&D Sectors in French Polynesia as of end 2014
There are no subsidised rates of electricity in French Polynesia, but rates of energy are equalised between the main island
of Tahiti and the other islands from all the archipelagos.
3 Power Generation and T&D Sectors
Total installed generation capacity at end 2014:
• Fuel or diesel: 162MW installed capacity and 367GWh production in Tahiti. Around 50MW installed capacity on the
other islands of French Polynesia.
• Hydro: 46MW installed capacity and 163GWh production in Tahiti. Around 2MW installed capacity on the other
islands.
• Solar: Around 22.5MWp installed capacity in French Polynesia with over 1,500 individual PV producers. Solar IPPs
represent 10% of the total capacity installed in power peak.
• Wind: Around 0.4MW installed capacity in French Polynesia.
The Structure of Installed Generating Capacity by Producers (Public Utilities and IPPs)
EDT: 162MW of thermal and 46MW of hydro capacity. EDT A list of major power plants by fuel types
has a concession contract for the generation, distribution
and retail of electricity on Tahiti, while TEP has a concession • The EDT main power plant is the Emile Martin-Punaruu
contract for transmission with the local government. The power plant with capacity of 122MW heavy fuel oil.
transmission grid includes 90kV and 30kV networks. • The capital town of Papeete has another power plant
called Vairaatoa with capacity for 46MW of diesel oil.
EDT also has a concession contract for 19 small outer
islands scattered in French Polynesia. Power grids by major voltage levels
• Other private hydro IPPs: <1MW installed capacity. • Tahiti grid: 90, 30, 20 and 14.4kV
• Other public utilities: <10MW thermal installed capacity • Other island grids: 20, 14.4 and 4.8kV
scattered on remote islands.
• Wind or solar private IPPs: 22.5MW of installed capacity
at end 2014 and still growing. A total of 26MWc of
network connected PV installations by end 2015.
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C EPS I 2018
Long-Term Power Development Plan and T&D Plan
To meet the increasing demand for power and to replace thermal generation can be reduced to 20MW instead of
ageing facilities, a new thermal power station of around 60MW and construction plans have been postponed.
60MW for Tahiti was expected to become operational in
2016 to 2018. In the coming years, the existing 90kV grid linking the
thermal and hydro generation facilities to the city will be
However, after a severe drop in energy consumption and enhanced by the creation of a 90kV ring to facilitate the
sales from 2010, and given the ongoing development installation of a new hydropower plant promoted by the
of solar hydro generation projects conducted by IPPs, local government.
The Policy of Renewable Energy and Major Regulatory Mechanism of the Renewable Law
Since July 2009, two main renewable energy laws renewable energy generation projects and also purchase
have been established in French Polynesia to promote the energy produced by these installations.
renewable energy supplies such as solar and wind.
The current form of the connection to the grid contract
Purchase tariffs for different kinds of renewable energy such and the technical specifications have been established
as hydro, solar PV, and wind have been established, with after close discussion between the government, the public
three different tariffs for solar PV installations depending utility and renewable energy installation suppliers in order
on the size of the project (<10kWc, 200kWc and over). to preserve the quality of energy delivered through the
grid.
A connection and purchase contract established by the
local government requires the utility to connect the grid to
The Role of Public Utility in the Renewable Energy Law
The role of the electric utility is to promote and facilitate the connection of the grid to every renewable energy project in
a non-discriminable manner.
The utility is also responsible for verifying the compliance of each project with the quality indicators for the voltage and
frequency of the distributed energy on the grid.
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C EPS I 2018
Production of Renewable Energy (MWh) by Various Resources
Table 3: Production of Renewable Energy
Type of renewable energy Total production in 2014 (MWh)

Hydropower 170,900
Solar 10,500
The Strategic Plan to Reduce Greenhouse Gas Emissions
In 2009, the government announced its intention to reach the goal of 50% of electricity production from renewable
energy by 2020.
It has published a technical investment plan for the 2009 to 2020 period establishing share between the different types
of renewable energy production.
5 Latest Development and Deployment of New Technologies
The latest development of new technologies in French Polynesia relates to seawater air conditioning, or SWAC technology,
which uses cold deep sea water, pumped at a depth of around 800 metres, to produce air conditioning, with up to 80%
saving on electricity needs.
This process is currently being used for one hotel on the island of Bora Bora. A second project has been established and is
now operating for the cooling system of the private resort island of Tetiaora. EDT has also conducted an extensive study
for implementing a smart grid in the next five years in order to dynamically manage its electrical network and the solar
and wind IPPs connected to the grid.
6 Major Issues Impacting the Electric Power Industries in French Polynesia
The Policy and Mechanisms of GHG or CO2 Emission Reduction
There is currently no specific policy or financial mechanism for reducing CO2 emissions.
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C EPS I 2018
The Policy and Regulations of Energy Conservation and Efficiency
Since 2009, local government has promoted the materials, solar panels and the associated batteries system.
development of distributed power production and energy It has also made it a legal requirement for electrical
savings through the implementation of a policy of duty tax consumption stickers to be displayed on electrical
exemption for imported materials such as LBC lighting appliances sold in French Polynesia.
Opportunities to Apply the New Technologies
French Polynesia consists of five archipelagos and is a The first EV arrived on Tahiti in late 2014 as an experiment
unique laboratory for developing original solutions for to develop the usage of electric mobility and has led to
energy efficiency such as electrical vehicles (EV), sea water the constant development of clean vehicles, supported
air conditioning systems and the study of the integration by subsidies applied to the retail price of EVs and hybrid
of PV systems with micro grids. vehicles.
How to Meet the Growing Needs for Reliable, Affordable and Sustainable Power Supplies?
The public utility has proposed a strategic plan for investment over the next decade which includes major development
of hydropower plants and efforts to promote fair energy consumption by customers.
7 Other Major Events or Experiences
EDT has launched a new website giving comprehensive information about its activities. The website can be reached at:
www.edt.pf.
EDT is a leader in the South Pacific for the prepayment billing system and in 2004 became the first company and utility
in the South Pacific to be ISO 9001-2000, 18001 and 14001 certified.
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HONG KONG SAR C EPS I 2018
2,754 7.4 HK$

km2 million1
2,489.1
billion (2016)2
Currency: Installed Capacity: Percentage of
HK dollar 12.4
Population Electrified:
(HK$) GW 100%
Source:
1 https://www.censtatd.gov.hk/hkstat/sub/sp20.jsp?productCode=B1010002
2 https://www.gov.hk/en/about/abouthk/facts.htm
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C EPS I 2018
Table 1: Total Power Consumption of CLP Power Figure 1: Total Power Consumption (CLP Power) as
of 2017
CLP Power Hong Kong Limited (CLP Power)
Sector Total Power 9%
Consumption as of
28%
2017(MWh)
Industrial 2,897,000
Residential 9,217,000
Commercial* 21,050,000
Total 33,164,000
63%
Remarks:
*Also include infrastructure and public services Residential Commercial Industrial
Table 2: Total Power Consumption of HK Electric Figure 2: Total Power Consumption (HK Electric) as
of 2017
The Hongkong Electric Company Limited
(HK Electric) 3%
Sector Total Power 23%
Consumption as of
2017(MWh)
Industrial 306,000
Residential 2,485,000
Commercial 7,824,000
74%
Total 10,615,000
Residential Commercial Industrial

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C EPS I 2018
Energy Policy
According to the HKSAR Government’s (the Government) The Government’s target is to reduce Hong Kong’s carbon
website1, the objectives of Hong Kong’s energy policy are: intensity by 65% to 70% by 2030 as compared to the 2005
• To ensure that the energy needs of the community are level, which is equivalent to an absolute reduction of 26%
met safely, reliably, efficiently and at reasonable prices; to 36% and resulting in per capita emission of 3.3 to 3.8
and tonnes in 2030. It is also anticipated that carbon emission
• To minimise the environmental impact of energy will peak before 2020. To meet the new carbon intensity
production and use and promote the efficient use and reduction target of 65% to 70% by 2030, Hong Kong will
conservation of energy. phase down coal-fired electricity generation since coal is
the most carbon-intensive fuel in the fuel mix. This means
Source: Hong Kong will continue to phase down the remaining
1 http://www.enb.gov.hk/en/about_us/policy_responsibilities/energy.
coal plants as they reach their normal retirement life in the
html
next decade and replace them with natural gas and non-
In keeping with Hong Kong’s free market economic fossil fuel sources.
philosophy, the Government intervenes only to safeguard
Source: Hong Kong’s Climate Action Plan 2030+
the interests of consumers where necessary, ensure
- https://www.climateready.gov.hk/
public safety and protect the environment. The oil and
gas companies, under a voluntary code of practice with
In April 2017, the Government signed the new SCAs with
the Government, maintain strategic reserves of gas oil
CLP Power Hong Kong Limited (CLP Power) and The
and naphtha respectively. Performance of the private-
Hongkong Electric Company Limited (HK Electric). The
owned power companies is monitored by the Government
SCAs for both companies will run until 31 December 2033.
through the Scheme of Control Agreements (SCAs).
The Government has entered into an Information and
Consultation Agreement with the Hong Kong and China Gas
Figure 3: In April 2017, the Government signed the
Company Limited to make the Towngas tariff adjustment
new SCA with HK Electric. The new SCA will run
mechanism more transparent. The Government also
until 31 December 2033.
promotes energy efficiency and energy saving measures in
consultation with the power companies.
In January 2017, the Government announced Hong Kong’s

Climate Action Plan 2030+, outlining the Government’s
longer-term action plan to combat climate change and
setting out the carbon emission reduction target for 2030.
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C EPS I 2018
Hong Kong has no indigenous energy resources. In 2016, the primary energy requirements for coal products (including
steam coal and other coal; wood charcoal; and anthracite), oil products (including aviation gasoline and kerosene;
unleaded motor gasoline; gas ,diesel and naphtha; fuel oil; LPG; and natural gas) and electricity were 262,684 TJ, 295,541
TJ and 40,446 TJ respectively.
Source: Hong Kong Energy Statistics https://www.statistics.gov.hk/pub/B11000022017AN17B0100.pdf
Hong Kong’s electricity demand is met by two vertically service and energy efficiency. Financial performance
integrated power companies, namely CLP Power Hong covers power companies’ capital investment, operating
Kong Limited (CLP Power) and The Hongkong Electric expenditure, rate of permitted return and tariff adjustment.
Company Limited (HK Electric) which are investor-
owned. They do not have a franchise. CLP Power supplies The current SCAs, renewed in October 2008 for CLP Power
electricity to Kowloon and the New Territories, including and in January 2009 for HK Electric, will expire at the end
Lantau, Cheung Chau and several other outlying islands, of September 2018 and December 2018 respectively. In
whereas HK Electric supplies electricity to Hong Kong April 2017, the Government entered into the post-2018
Island and Lamma Island. SCAs with both power companies. The new SCAs with CLP
Power and HK Electric will come into effect on 1 October
The electricity market in Hong Kong is governed by the 2018 and 1 January 2019 respectively and both will run
SCAs, which defines the companies’ role as an electricity until 31 December 2033.
provider, and provides a regulatory framework for the
Government to monitor its operating performance and The new SCAs will carry key features including a prescribed
financial affairs. rate of return for investment and linkage of rate of return
to operational and environmental performances including:
Under the regulatory regime, power companies have • A permitted rate of return of 8%.
obligations to provide sufficient and reliable electricity • The agreement will run for 15 years.
supply in their service areas. Customers obtain quality • The Fuel Cost Adjustment (FCA) in total tariff will be
electricity supply at a reasonable price and in an adjusted more frequently.
environmentally responsible manner, while the power • The Feed-in Tariff (FIT) Scheme will be introduced to
companies earn a return which is reasonable in relation to encourage the development of Renewable Energy (RE)
the risks involved and the capital invested. The SCAs also systems in the community and the Renewable Energy
provide an effective and stringent regulatory framework for Certificate (REC) Scheme will be launched to allow
the Government to monitor power companies’ operational customers who prefer clean energy to purchase the
and financial performance. Operational performance REC to support local RE development.
covers supply reliability, operational efficiency, customer
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• The existing incentive and penalty scheme continues to apply, but will be revamped with more stringent performance
targets in supply reliability, operational efficiency and customer services. New performance targets on grid supply
restoration will be introduced to enhance service levels.
• Two new funds for promoting energy saving for buildings and the use of higher energy efficient electrical appliances
will be established based on a fraction of incentives ploughed back from the power companies when achieving higher
targets on energy audit and energy saved from the initiatives.
The two power companies are subject to a wide range of which must be adhered to when dealing with personal
laws and regulations relating to environmental protection, data, including employees, contractors, customers,
safety, data protection, employment and corporate etc.
governance. The key legislations include: • Employment Ordinance and Disability Discrimination
• The Electricity Ordinance (Chapter 406) and the Gas Ordinance: The Employment Ordinance sets out the
Safety Ordinance (Chapter 51) regulate the safe supply framework for a comprehensive code of employment.
of electricity and gas and the safety of household It governs the payment of wages, the termination
electrical products and gas appliances. Among other of employment contracts and the operation of
things, they cover the registration of generating employment agencies, as well as provides employment
facilities, contractors and workers for electrical and gas protection for employees. Furthermore, employees
installations, wiring and gas installation standards and have statutory protection against anti-union
the safe distribution and use of electricity and gas. discrimination under the Employment Ordinance while
• In relation to environmental protection, the Air the Disability Discrimination Ordinance protects people
Pollution Control Ordinance (Chapter 311), the Waste with disability against discrimination, harassment and
Disposal Ordinance (Chapter 354), the Water Pollution vilification on the grounds of their disability.
Control Ordinance (Chapter 358), the Noise Control • Companies Ordinance: The Companies Ordinance
Ordinance (Chapter 400) and the Environmental regulates the incorporation and/or the registration
Impact Assessment Ordinance (Chapter 499) are the of local companies and overseas companies; the
major environment-related laws and regulations by deregistration of defunct, solvent private companies;
which power companies must abide. the prosecution of companies and their officers for
• Personal Data (Privacy) Ordinance: The Personal Data breaches of the various regulatory provisions of this
(Privacy) Ordinance is established to protect the right Ordinance; the provision of facilities to inspect and
to privacy. It stipulates six data protection principles obtain company information.
The Amount of Electricity Exported and Imported
In 2017, CLP Power imported 12,426,000MWh of electricity from mainland China; and exported 1,341,000MWh to
customers in mainland China.
Source: Hong Kong Energy Statistics - 2017 Annual Report, page 6 https://www.statistics.gov.hk/pub/B11000022017AN17B0100.pdf)
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Tariff Structure
The electricity tariff paid by electricity users comprises two customers with lower household incomes. Inclining tariff
major components: basic tariff and fuel cost adjustment. structures for residential customers are common in many
The basic tariff covers operating expenses, standard fuel cities worldwide.
charges and the permitted rate of returns to the power
companies; while the fuel cost adjustment reflects the CLP Power offers a concessionary tariff for the elderly
changing price of fuels and is borne by consumers and who are over 60 years of age, who live alone or with
payable to the power companies on a cost-pass-through other similarly qualified elderly, and who are relying on or
basis. The overall tariff of Hong Kong has been maintained entitled to Comprehensive Social Security Assistance. The
at a relatively stable level under the SCA regime. In addition, successful applicants will be offered half-price for the first
Hong Kong’s electricity tariff is lower than that of many 400 units of electricity consumed in two months plus an
major cities in the world. exemption of the minimum charge per bill.
CLP Power Unlike residential tariff customers, inclining tariff structures

for large business customers are uncommon in other cities
CLP Power has four tariff categories, namely: in the world.
a) Residential tariff (residential customers)
b) Non-Residential tariff (small-to-medium businesses) CLP Power’s non-residential tariff has a declining structure
c) Bulk tariff (large businesses and public services) of two blocks with a slight difference per unit. High
d) Large Power tariff (largest businesses and public services) consumption customers under bulk tariff and large power
tariff categories have two extra tariff features:
The tariff structure is designed to be fair and cost reflective • They have to pay a demand charge in addition to the
for each tariff group of customers, and it therefore avoids cost of the energy units they consume. The demand
cross-subsidies between the customer groups. charge reflects the capacity of the supply customers
draw from CLP Power’s network based on their
The cost of the electricity supply to each tariff group maximum energy demand.
takes into account the investment and resources needed • In addition, under a time-of-use tariff feature, they also
to supply them, and the efficiency with which resources pay a premium for energy used at peak times but are
are used. In general, fixed operating costs like metering, able to reduce costs if they can move this to off-peak
billing, customer service are lower per unit for customers periods. This facilitates demand side management and
with higher consumption. better utilisation of power generation facilities.
For residential tariff customers, an inclining block structure Energy Saving Rebate was introduced in 2013 to help low
is applied. Under this structure, there are seven blocks consumption residential and small business customers and
with different rates. Higher consumption is charged at encourage energy saving. Residential and small business
a progressively higher unit rate. This encourages the customers who use 400 units or less per bill enjoy the
efficient use of energy by residential customers, and the rebate.
lower blocks provide some protection for residential
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Table 3: Rebate Rate Per Consumption
Total Consumption Per Bill Rebate Rate (Cents/Unit)

1 to 200 units 17.2 cents per unit on total consumption
The Average Net Tariff for 2018 was increased to HK$1.154 per unit of electricity.
Table 4: Average Net Tariff for 2018
Tariff Component (cents/kWh) 2017 Tariff Change 2018 Tariff*

Average Basic Taraiff 92.2 +2.3 94.5
Fuel Cost Adjustment 21.0 +1.0 22.0
Rent and Rates Special Rebate 0.0 -1.1 -1.1
Average Net Tariff 113.2 +2.2 115.4 (+1.9%)
Source: http://www.legco.gov.hk/yr17-18/english/panels/edev/papers/edev20171212cb4-325-5-e.pdf
CLP Power’s tariff level is competitive

Figure 4: Tariff Comparison
compared to other key metropolitan
cities in the world. Without HK$/kWh Low Tariff
government subsidies, CLP Power
3.0
charges one of the lowest tariffs
among major cities in the world. In 2.5
2018, the average net tariff of CLP
2.0
Power is $1.154 per unit.
1.5
1.0
0.5
0.0
CLP Singapore London New Sydney
Power York
Remarks:
Comparison based on average monthly domestic consumption of 275kWh tariff and exchange
rate at January 2018
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HK Electric (2) to reduce the electricity expenses for low-consumption

families.
HK Electric has three tariff classes – (1) residential tariff,
(2) non-residential tariff and (3) maximum demand tariff. HK Electric offers the following concessionary tariff
Electricity tariffs charged to customers are made up of the schemes and successful applicants are entitled to receive a
basic tariff and the fuel cost adjustment. The basic tariff is 60% discount for the first 200 units of electricity consumed
used to recover total operating costs with fuel costs at a in a month plus the exemption of the payment of deposit
standard rate, depreciation and the permitted return. The and minimum charge.
fuel cost adjustment is to pass through the difference in • Concessionary Tariff Scheme for the Elderly
fuel costs when the actual rate is higher or lower than the • Concessionary Tariff Scheme for the Disabled
standard rate. • Concessionary Tariff Scheme for Single-Parent Families
• Concessionary Tariff Scheme for the Unemployed
HK Electric has implemented a progressive block tariff
structure to its residential customers since the early 1990s HK Electric is committed to providing customers with
to encourage environmental protection through energy stable and reasonable tariffs in the long term. At the end
conservation and efficiency improvement. of 2013, HK Electric announced the freezing of its net tariff
for five years from 2014 to 2018, an unprecedented move
Following its successful implementation in the residential worldwide.
sector, this progressive block tariff structure has been
extended to its non-residential tariff customers since the HK Electric froze its tariff for two years in 2014 and 2015,
early 2000s. followed by successive tariff reductions in 2016 and 2017.
In 2018, despite a tariff rebound following a smaller special
HK Electric introduced a ’Super Saver Discount’ in 2013. fuel rebate, the net tariff remains 16.6% lower than the
Residential customers with consumption of less than 100 2013 level, while the aggregated inflation is 11.8% within
units of electricity in any month are given a 5% discount on the same period. This demonstrates that HK Electric has
their electricity bills. The discount serves two purposes: (1) honoured its pledge to freeze tariffs between 2014 and
to provide an incentive for customers to save energy; and 2018.
Figure 5: 2018 Net Tariff
Year 2017 2018 Adjustment

HKC per unit (¢/unit) (¢/unit) (¢/unit)
Net Basic Tariff 104.9 105.1 +0.2
Net FCC 5.5 7.4 +1.9
Net Tariff 110.4 112.5 +2.1 [+1.9%]
• 2018 Net Tariff will be 112.5¢ per unit, 2.1¢ per unit higher than 2017
• Net Tariff rebound mainly due to reduced Special Fuel Rebate rather than changes in operating environment or
market conditions
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Figure 6: HK Tariff Comparison
Tariff Lower than International Cities
Residential Tariff ($/unit)

3.0
2.5
2.0
1.5
1.0
2018 Tariff
0.5
0.0
Shanghai HK Electric Seoul Singapore Macau Tokyo London New York Sydney
Remarks: Comparison based on monthly residential customer consumption of 275 units overseas tariffs and
exchange rates are as at November 2017
Sources:
1. Shanghai: Shanghai Municipal Electric Power Company
2. HK Electric: The HongKong Electric Company, Ltd. 6. Tokyo: Tokyo Electric Power Co., Inc.
3. Seoul: Korea Electric Power Corporation 7. London: EDF Energy
4. Singapore: SP Services Ltd. 8. New York: Consolidated Edison, Inc.
5. Macau: Companhia de Electricidade de Macau 9. Sydney: EnergyAustralia
Source: HK Electric’s Tariff Review 2018 to LegCo Panel on Economic Development
Providing customers with stable and reasonable tariffs in the long term, HK Electric’s tariff for typical households is lower
than in many major metropolitan cities including Seoul, Singapore, London, New York and Sydney.
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Figure 7: HK Residential Tariff
Residential Tariff Lower than Other Cities
Residential Tariff (HK$/Unit) (November 2016)
279% 280%
2
206%
174%
150%
1
100% 104%
2017 Tariff
0
HK Electric Shenzhen Singapore Macau London New York Sydney
Remarks:
(1) Comparison based on monthly residential customer consumption of 275 units (3,300 units p.a), about 40% of
HK Electric’s residential customers, overseas tariffs and exchange rates are as at November 2016
(2) HK Electric’s tariff includes the Special Rent and Rates Rebate and the Special Fuel Rebate
Source:
1. HK Electric - The HongKong Electric Company, Ltd.
2 Shenzhen - Shenzhen Power Supply Bureau
3. Singapore - SP Services Ltd,
4. Macau - Companhia de Electricidade de Macau
5. London - EDF Energy
6. New York - Consolidated Edison, Inc.
7. Sydney - EnergyAustralia
Source: HK Electric’s Tariff Review 2018 to LegCo Panel on Economic Development

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To meet the 2020 fuel mix target, HK Electric would have to increase the use of natural gas for power generation from
approximately 33% of the total electricity output at present to around 50% in two years’ time. While this will substantially
increase its costs for natural gas from 2020, HK Electric has to prepare for minimising the impact of future fuel cost
increases on its customers.
Electricity Subsidies among Generation, Transmission and Distribution Sectors
Currently, there is no electricity subsidy among the generation, transmission and distribution sectors in Hong Kong.
CLP Power
Investments Description Fuel Type

Castle Peak Power CAPCO owns and CLP Power operates:
Company Limited
(CAPCO) Black Point Power Station (2,525MW)
• One of the world’s largest gas-fired combined-cycle power stations comprising Gas
seven 312.5MW units and one 337.5MW unit. (with another new 550MW unit
under construction and expected to commence operation before 2020).
Castle Peak Power Station (4,108MW)

• Comprising four coal-fired units of 350MW each and another four units of Coal
677MW each. Two of the 677MW units can use gas as backup fuel. All units can
use oil as a backup fuel.
Penny’s Bay Power Station (300MW)

• Three diesel-fired gas turbine units of 100MW each, mainly for backup purpose. Oil
Remarks:
CLP Power purchases its power from CAPCO, PSDC and GNPS. These sources of power (including projects under construction) amount to a total capacity
of 9,463MW (CAPCO: 7,483MW, PSDC: 600MW, GNPS: about 1,380MW) available to serve the Hong Kong electricity business
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Investments
Gross/Equity MW Description Fuel Type
Guangdong GNPJVC owns the Guangdong Daya Bay Nuclear Power Station (GNPS) at Daya Nuclear
Nuclear Power Bay. GNPS is equipped with two 984MW Pressurised Water Reactors. 70% of
Joint Venture electricity generated is supplied to Hong Kong, with the remaining *30% sold to
Company, Guangdong.
Limited (GNPJVC)
1,968/492MW
Hong Kong PSDC holds the right to use half of the 1,200MW pumped storage capacity of Hydro
Pumped Storage Phase 1 of the Guangzhou Pumped Storage Power Station until 2034.
Development
Company,
Limited (PSDC)
1,200/600MW
*Agreement has been reached to increase the proportion of supply to Hong Kong to about 80% from 2015 to 2018, with
the remainder continuing to be sold to Guangdong.
As Hong Kong becomes more reliant on gas and to meet the of which is a 1-on-1 single shaft machine commissioned in
Government’s expectations for the new fuel mix for power 2006, and the other one is a 2-on-1 unit converted from
generation, there is a need to ensure secure, additional two old gas turbines by retrofitting two heat recovery
and reliable supplies of natural gas at competitive prices steam generators and a steam turbine.
from the global market. CLP Power and HK Electric are
therefore jointly pursuing a project to develop an offshore There is also a single 800kW wind turbine located on
LNG import terminal for Hong Kong, using a Floating Lamma Island which is a few kilometres off-site the
Storage and Regasification Unit (FSRU) located in the power station. After developing the first wind power
southern waters of Hong Kong. Good progress has been station in Hong Kong in 2006, HK Electric marked another
made on LNG supply and the FSRU vessel arrangements. milestone in the development of renewable energy by
commissioning the city’s largest solar power system with
HK Electric an installed capacity of 550kW at Lamma Power Station
in July 2010. In view of its remarkable performance, HK
The maximum demand in HK Electric’s system was Electric expanded the system from 550kW to 1MW in 2013.
2,513MW in 2017. As the oldest coal-fired unit retired
in 2017, HK Electric’s Lamma Power Station has a total Coal is the normal fuel of the seven coal-fired units
installed generating capacity of 3,487MW, consisting of while oil is only used during start-up, shutdown or flame
seven coal-fired units, five oil-fired simple-cycle gas stabilisation. In 2017, coal consumption was around
turbine units, and two gas-fired combined-cycle units, one 3 million metric tonnes (i.e. around 30% decrease
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compared with around 4.3 million metric tonnes in of electrical and mechanical equipment targeted for April
2005 when no gas-fired combined-cycle units were yet 2018. For Unit L11, piling was completed on schedule in
available). The oil-fired simple-cycle gas turbines serve September 2017. L10 and L11 will be commissioned in
as peak lopping units and also as back-up power supply 2020 and 2022 respectively.
during emergencies.
Following the use of high-quality fuels combined with the
The single shaft gas-fired combined-cycle unit, designated effective performance of emission reduction facilities, the
as Lamma Unit L9, is located at Lamma Power Station sulphur dioxide (SO2), nitrogen oxides (NOx) and respirable
Extension site. Commissioned in October 2006, it is the suspended particulates (RSP) emissions from Lamma
first combined-cycle unit in Hong Kong adopting re- Power Station in 2017 were significantly reduced by 56%
gasified Liquefied Natural Gas (LNG), one of the cleanest to 93% as compared with 2005.
fuels available today. Re-gasified natural gas is being
supplied from the Guangdong Dapeng LNG Terminal The wind turbine in HK Electric’s system, the Lamma
located in Shenzhen via a 92km submarine gas pipeline Winds, is the first grid-connected commercial wind turbine
connecting the LNG terminal and Lamma Power Station in Hong Kong. Since its official opening in February 2006,
Extension. the turbine and its adjacent exhibition centre have become
a major landmark on Lamma Island, attracting numerous
With the additional natural gas supply secured from the visitors from professional, environmental, educational
Shenzhen LNG Receiving Terminal and the successful and community groups. HK Electric completed three
conversion of GT57 from an oil-fired combined cycle unit years of wind monitoring for the proposed offshore wind
to a gas-fired unit, HK Electric has further increased its use farm project. Initial analysis of the wind resource data has
of natural gas for power generation. Power generation confirmed the feasibility of developing a wind farm at the
from natural gas has increased and accounts for over 30% selected site located at the southwest of Lamma Island.
of HK Electric’s total electricity sent out since 2010. Discussions with key stakeholders have revealed that the
community in general is supportive of the project
In 2017, the power output generated from natural gas
comprised approximately 34% of HK Electric’s total output, List of power grid by major voltage levels
and carbon dioxide emissions decreased by about 15% as
compared with 2005, just before natural gas was introduced CLP Power:
at Lamma Power Station. Following formal approvals by
the Government, HK Electric will consecutively install 400kV 132kV 11kV 380V
two new gas-fired combined cycle generating units, L10
and L11, at its Lamma Power Station Extension to replace HK Electric:
retiring coal-fired and gas-fired units.
• 275kV 132kV 22kV 11kV 380V
Civil construction of Unit L10 has been progressing at a
satisfactory pace with the commencement of installation
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CLP Power It will make more details of the Feed-in Tariff programme
and Renewable Energy Certificates available during
CLP Power strives to provide customers with a world-class 2018 and preparation is underway to launch the new
electricity supply with high supply reliability, an improving Eco-Building Fund and the Community Energy Saving
environmental performance, and reasonable tariffs. The Fund to help lead Hong Kong towards a lower carbon
company will continue to do so in the future despite future.
the challenges of extreme and changing weather, an
uncertain global economic outlook, volatile international In a fast-changing world, CLP Power will capitalise
fuel markets, and rising environmental performance on technological advances to continually improve its
expectations. operations and provide better value for customers. The
company will make use of data analytics and robotics to
The company will ensure the safe and timely construction optimise its asset management and improve its predictive
of the new combined-cycle generating unit at Black Point operational management capability. New forms of
Power Station, as well as press ahead with the development technology such as chatbots will be deployed to enhance
of an offshore LNG terminal to maintain supply reliability, its services and customer offerings. The company will also
fuel source diversity, and the ability to procure fuel on continue to work closely with various stakeholders and
competitive terms. support the community in practical and meaningful ways,
providing environmental education, supporting youth
The company will work closely with the Government on the development, and helping disadvantaged people in the
next Development Plan to ensure appropriate investment community. As Hong Kong becomes a world-class smart
and resources are available to maintain world-class service city, it needs a smart utility to support and facilitate the
to customers. CLP Power will also explore options to transformation. CLP Power is ready to take that role.
further reduce Hong Kong’s carbon emissions in the long
term, including the possibility of an even cleaner fuel mix In view of the growing demand for power expertise arising
and the import of clean energy. from large-scale infrastructure developments, CLP Power
launched the new CLP Power Academy (the Academy) in
CLP Power is committed to working with customers to put 2017 to provide industry-recognised professional training
the new SoC agreements into effect and to energetically courses for those who aspire to develop their career in the
promote renewable energy and greater energy efficiency. power industry.
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The Academy aims to cooperate with educational institutions to offer professional diploma courses and other advanced
programmes, covering technical competencies in power generation, transmission and distribution, and operational
safety. By equipping themselves with practical knowledge and skills, academy graduates will be able to realise their
potential and achieve their dreams.
The Academy has joined hands with the Vocational Training Council (VTC) to launch the Professional Diploma in Power
Engineering. It also collaborated with the Hong Kong Polytechnic University-affiliated College of Professional and
Continuing Education in providing a Bachelor of Engineering (Hons.) in Electrical Engineering. The Academy will continue
to explore opportunities to launch more professional training programmes.
HK Electric
HK Electric secured the Government’s approval to proceed with the construction of two new gas-fired combined cycle
generating units, L10 and L11 in 2015 and 2016 respectively. The two new units, which are targeted for commissioning by
2020 and 2022 respectively, will enable HK Electric to increase the proportion of gas-fired generation to about 55% by
2022 while maintaining supply reliability.
In 2017, HK Electric continued to outperform the statutory emissions targets. Moreover, following the tightening of the
power plants’ annual emissions allowances for 2019, 2020 and 2021, HK Electric has further worked with the Government
to agree on a set of tighter annual emissions allowances for 2022 and beyond. For 21 consecutive years since 1997, HK
Electric has upheld a supply reliability rating that exceeds 99.999%.
The average unplanned customer minutes lost per year has been less than one minute since 2009. HK Electric mainly
uses underground and submarine cables for transmission and distribution of electricity so that there is minimal disruption
during typhoons and lightning. The main power plants and coastal transmission and distribution stations are equipped
with anti-flooding systems.
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Carbon Emission Reduction
The policy of Renewable Energy and major regulatory mechanism of Renewable Law
The HKSAR Government is committed to the development target is subject to regular review in the light of advances
of renewable energy (RE) in Hong Kong with a view to in technological solutions and emerging sustainability
further improving Hong Kong’s air quality. considerations.
Source: http://www.enb.gov.hk/en/about_us/policy_responsibilities Source: https://www.climateready.gov.hk/

renewable_energy.html.
The Government’s target is that by 2030 between 3% Currently, there is no regulation on renewable energy or
and 4% of Hong Kong’s total electricity supply will be control of carbon dioxide emissions in Hong Kong.
met by power generated from renewable sources. This
Currently, there is no Renewable Energy Law in Hong Kong.
Given Hong Kong’s densely populated urban environment and the nature of its terrain, there is limited potential for Hong
Kong to develop significant land-based renewable energy projects.
CLP Power
While large-scale land projects prove challenging, there is still the possibility of smaller-scale RE projects in Hong Kong.
In 2010, CLP Power implemented Hong Kong’s first commercial-scale standalone RE generation and storage system on
Town Island. In 2013, the project was named one of the ’Hong Kong People Engineering Wonders in the 21st Century’ in
a prestigious public vote organised by the Hong Kong Institution of Engineers.
The entire project comprises 672 solar panels, two wind turbines and 576 batteries, with a generating capacity of up to
192kW which is capable of lighting up 9,600 compact fluorescent lamps. As the system is not connected to the grid, it
features batteries capable of storing over 1,000kWh of electricity to provide power supply for the rehabilitation centre’s
use lasting for 30 hours.
By the fourth quarter of 2017, the system had generated more than 482,000kWh of electricity, equivalent to the monthly
consumption of 1,377 households. It had achieved a significant reduction of over 195,000kg in carbon dioxide (CO2)
emissions.
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Despite limited RE resources and land scarcity in Hong Kong and China Gas Company’s (HKCG) production plant
Kong, CLP Power has been actively exploring practicable in Tai Po for use as an alternative energy source. For the
RE opportunities. Customers can connect their RE systems South East New Territories Landfill, surplus gas is treated (in
to CLP Power’s grid through a simple procedure, and the form of synthetic natural gas) and conveyed to HKCG’s
technical support, and grid connection advice for local RE Offtake Station at Tseng Lan Shue, where the treated gas is
projects of different scales are provided to the customers. blended with town gas for injection to the supply grid for
In addition, back-up electricity supply is provided for these HKCG’s customers.
systems so that customers can enjoy clean electricity
from renewable sources without sacrificing power supply Source: http://www.epd.gov.hk/epd/english/environmentinhk/waste/prob_
solutions/msw_lgu.html
reliability. As of the end of 2017, about 300 customers’
RE systems are connected to CLP Power’s grid, of which
Apart from the strategic landfills, there are 13 restored
270 are solar energy systems. Schools and government
landfills. Landfill gas from some of the larger restored
projects take up the largest share, while residential projects
landfills is also used as an energy source for utilisation at
account for around 10%.
HKCG’s plant, electricity generation, powering for leachate
treatment. Excess gas is flared as far as practicable for
Under the new SCAs, CLP Power will introduce Feed-in
complete destruction.
Tariff (FIT) and Renewable Energy Certificates (REC) to
promote community participation in RE development. The Source: http://www.epd.gov.hk/epd/english/environmentinhk/waste/prob_
FIT programme will incentivise people to develop small- solutions/msw_si_lra.html
scale RE projects by shortening the payback period of their
investment. CLP Power will continue to facilitate easy grid CLP Power is currently pioneering Hong Kong’s largest
connection for these projects. landfill gas power generation project at the West New
Territories (WENT) Landfill site. An environmental permit
Renewable Energy Certificates allow customers who prefer was granted in April 2017 and the company plans to install
clean energy to support electricity generated from local 10MW power generation units in the initial stage of the
RE systems. It offers different platforms for the community project that uses landfill gas as fuel. The amount of energy
to participate in RE development. produced will be enough to meet the annual electricity
demand of around 17,000 four-person homes. The facility
Currently, all three existing strategic landfills, namely is expected to go into operation in the middle of 2019.
West New Territories Landfill, South East New Territories
Landfill and North East New Territories, have been utilising HK Electric
landfill gas for energy production. The current uses include
electricity generation for use in on-site infrastructures; and In 2017, the 1MW Thin-Film Photovoltaic (TFPV) solar
powering the leachate (wastewater from landfill) treatment power system generated 1.059 million units of electricity,
facilities. For the North East New Territories Landfill, the while Lamma Winds generated 0.825 million units.
surplus landfill gas is also treated and delivered to Hong These two RE systems led to a reduction of about 1,570
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tonnes of carbon dioxide emissions in 2017, equivalent to HK Electric’s Power Quality Centre in North Point provides
planting roughly 68,000 trees. Buoyed by Lamma Winds, advisory services to its customers and helps them
HK Electric plans to develop an offshore windfarm with a understand how to safeguard power for their important
capacity of 100MW off Lamma Island. Research based on facilities. In 2017, 17 guided group tours were arranged
the recent years’ onsite wind measurement reveals that at the centre. In addition, in its continuous effort to
the proposed windfarm could generate enough green promote energy efficiency and electrical safety among
electricity for 50,000 families’ daily use. Discussions with stakeholders, in 2017 HK Electric organised four outreach
key stakeholders have revealed that the community in talks for community centres as well as 45 mini energy
general is supportive of the project. efficiency workshops at its Smart Power Centre for various
stakeholders including academic sectors, professional
HK Electric also provides support for small-scale RE institutions, trade practitioners, and property or facility
projects in the community. HK Electric offers standardised management professionals.
arrangement under the Scheme of Control Agreement for
back-up supply for customers with distributed RE systems HK Electric allocates about HK$2.5 million every year to an
within its supply territory. Grid connection arrangements education fund to cover various energy-efficiency related
are made between HK Electric and the prospective grid activities, including the annual Smart Power Campaign,
user on reasonable terms and are subject to the technical community-based energy efficiency education and
and safety requirements stipulated in the prevailing sponsorship for various energy efficiency and conservation
technical guidelines issued by the Government. activities organised by the Government, professional
bodies and green groups.
Among the many ways HK Electric spreads green
educational messages, the annual Smart Power Campaign Figure 8: HK Electric is keen to spread green
aims to promote energy efficiency and a low carbon messages to the younger generation through its
lifestyle among the public, in particular among the Smart Power Campaign
younger generations through a wide array of activities. In
2017, a series of activities were organised to promote the
theme - ’Be Green, Be Happy‘, including the ’Happy Green
Schools’ Label Programme, ’Happy Green Community
Ambassadors’ Programme, ’Green Energy Dreams Come
True‘ Programme, roving exhibitions and various other
learning experience activities including school talks,
training classes on green news reporting, job shadowing,
eco-heritage tours, visits to Lamma Winds, Lamma Power
Station and the Smart Power Centre.
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Environmental Challenges of Electricity Supply
At present, the Government monitors the emission of the following pollutants: sulphur dioxide (SO2), nitrogen oxide (NOx),
respirable suspended particulates (RSP/PM10), fine suspended particulates (FSP/PM2.5), volatile organic compounds
(VOC) and carbon monoxide (CO).
As part of the measures intended to improve local air quality in Hong Kong, the Government has been steadily tightening
the emissions levels allowed for power stations in Hong Kong.
In late 2015, the Fifth Technical Memorandum was issued, which has taken into account the Government’s fuel mix target
set for 2020, was issued in late 2015. The permitted emissions allowances for SO2, NOx and RSP for power generation in
Hong Kong are required to be reduced further by 17%, 17% and 16% respectively by 2020 as compared to the levels of
2019. The Sixth and Seventh Technical Memorandums, which aim to further reduce the emissions of air pollutants from
power plants, were issued in late 2016 and late 2017 respectively. The permitted emissions allowances of SO2, NOx and
RSP for power generation in Hong Kong are reduced further by 8%, 3% and 6% respectively by 2021 as compared to the
levels of 2020, and are further tightened by 25%, 15% and 11% respectively by 2022 as compared to the 2021 levels.
On 1 January 2014, the Government put into force an updated Air Quality Objectives (AQO), which have been drawn
up with reference to recommendations made by the World Health Organisation (WHO) and the practices of advanced
countries, together with a package of air quality improvement measures to better protect public health. The new AQO
will be reviewed at least once every five years with a view to promoting the conservation and best use of air in the public
interest.
To attain the new AQO, the Government has put forward a wide range of new air quality improvement measures. In
addition, in November 2012, the HKSAR and the Guangdong Provincial Governments endorsed a new set of regional
emission reduction targets/ranges for 2015 and 2020 respectively. Meeting the emission reduction targets would enable
the ambient air quality of Hong Kong to broadly meet the new AQO by 2020.
In March 2013, the Government published a Clean Air Plan for Hong Kong outlining the challenges Hong Kong is facing
with regard to air quality as well as relevant policies, measures and plans to tackle the issue.
In 2016, the Government started the review of the AQO put in force in 2014. An AQO Review Working Group led by the
Secretary for the Environment gathered views on four key aspects, namely air science and health, emission reduction in
energy and power generation, road transportation and marine transportation. Review findings and recommendations for
the new set of AQO will be available in mid-2018, and a public consultation on the recommendations will follow.
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CLP Power
CLP Power manages the environmental impact of electricity generation responsibly, adopting the world’s best practices
and has established effective environmental management systems which conform to the globally recognised ISO 14001
standard. Over the years, CLP Power has worked diligently to manage carbon and air emissions in operations.
CLP Power has successfully met the increasingly stringent emissions caps for its power plants set by the Government
through a combination of emissions reduction technologies and changes to the fuel mix, including the introduction of
natural gas, nuclear power, low-emission coal and the addition of sophisticated emissions control facilities. CLP Power’s
emissions have fallen by over 88% since 1990 while electricity demand has grown by about 84% during the same period.
To meet the emissions caps for

Figure 9: Environmental Improvement
2020 and support the Government’s
environmental policy of increasing
natural gas to around 50% in the
Environment Improvement
fuel mix target for 2020, CLP Power
Over 88% emissions reduction even with 84% increase in electricity sales since 1990
is building an additional gas-fired
Total Emissions (KT) Electricity Sales (GWh) generation unit at Black Point Power
35,000 Station. The main civil works of the
240 30,000 project have been progressing at full
25,000 speed and the new unit is targeted to
180
20,000 achieve commercial operation before
120 15,000 2020.
60 10,000
5,000
0
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Respirable Suspended Sulphur Dioxide Nitrogen Oxide Electricity

Particulates (RSP) (SO2) (NOx) Sales
Total Emissions Reduction 1990-2017

RSP 90%
SO2 94%
NOx 88%
Total Electricity Demand 84%
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HK Electric
To help contribute to the Government’s 2020 fuel mix target, HK Electric will consecutively install two new gas-fired
combined cycle generating units, L10 and L11 at its Lamma Power Station to replace retiring coal-fired and gas-fired
units. The two units, each equipped with a Selective Catalytic Reduction System with nitrogen oxide removal efficiency
of 90%, are scheduled for commission in 2020 and 2022 respectively. When L11 is commissioned in 2022, HK Electric’s
gas generation ratio will increase to about 55% to meet the Government’s fuel mix and environmental targets.
To maintain supply reliability while increasing gas-firing generation capacity, it is imperative to secure the supply chain.
Hong Kong at present lacks storage facilities for natural gas imported by sea, which also affects the local power industry’s
negotiating power with international gas suppliers.
The Government launched a public were reported in the Government’s consultation paper on the Future
consultation on Hong Kong’s Climate Development of the Electricity Market published on 31 March 2015.
Change Strategy and Action Agenda.
The consultation document, issued On 19 March 2014, the Government re-launched a three-month public
in September 2010, dealt with a wide consultation on the future fuel mix for electricity generation. In the new
range of climate change proposals consultation document, two options were identified:
and mitigation measures. For the
power sector, it proposed a fuel mix Table 5: Public Consultation on Future Fuel Mix for Electricity Generation
targeted at 50% nuclear, 40% gas,
3% to 4% renewable energy and not Import
more than 10% coal by 2020. Nuclear Grid Natural Coal (&
Fuel Mix (Daya Bay) Purchase Gas RE)
Fuel Mix Option Existing (2012) 23% - 22% 55%*
Option 1 Purchase from 20% 30% 40% 10%
The consultation received more the mainland Total: 50%
than 86,000 submissions with most power grid
of the respondents supporting
Option 2 Using more 20% - 60% 20%
local generation by natural gas
natural gas
and expressing reservation about
for local
importing electricity from mainland
generation
China. Results of the consultation
*Inclusive of a small percentage of oil
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Two environmental targets are adopted in guiding the In the Hong Kong Climate Change Report 2015, the Hong
development of Hong Kong’s future fuel mix. They are: Kong Government stated that it will use the new national
i) to reduce Hong Kong’s carbon intensity by 50% to targets the Central Government announced as reference
60% by 2020 when compared to 2005; and ii) to reduce to continue to shape its mitigation plans. The Central
the emissions of SO2 by 35% to75%, NOx by 20% to 30% Government announcement committed to lowering the
and RSP by 15% to 40% for Hong Kong by 2020 when nation’s overall carbon intensity by 60% to 65% from the
compared to 2010. 2005 level by 2030.
The future fuel mix the Government plans to implement CLP Power
for meeting the pledged environmental targets for 2020
are as follows: CLP Power recognises its role in addressing climate
• To increase the percentage of local gas generation to change. The company has voluntarily set a group-wide
around 50% of the total fuel mix in 2020; and subject Climate Vision 2050, which aims to cut the carbon intensity
to a reasonable import price, to maintain the current of its generation portfolio by 75% by 2050, as compared
interim measure to import 80% of the nuclear output to 2007 levels. In Hong Kong, the company is supportive
from Daya Bay Nuclear Power Station, such that of the HKSAR’s overall approach to building community
nuclear import would account for around 25% of the awareness of the issue and be ready to play a part in a
total fuel mix in 2020; range of initiatives to help Hong Kong with mitigation,
• To develop more RE, including distributed RE subject to adaptation and resilience strategies.
public views on the tariff implications;
• To enhance efforts to promote energy saving in the Hong Kong experienced a succession of extreme weather
community and adopt more demand side management events in 2017. The territory was affected by seven
(DSM) measures in order to reduce overall demand; typhoons with two particularly strong ones striking in the
and space of five days. CLP Power was able to maintain a highly
• To meet the remaining demand for electricity by coal- reliable service despite these challenges. During Typhoon
fired generation. Hato, which triggered Hong Kong’s most severe number
10 storm warnings for the first time since 2012, CLP Power
In 2015, the Government unveiled the Energy Saving customers experienced an average of just 0.7 minutes of
Plan for the Built Environment 2015~2025+ in May and unplanned power interruption, down from 1.8 minutes
launched the Hong Kong Climate Change Report 2015 when Typhoon Vicente hit Hong Kong five years earlier.
prior to the 2015 Paris Climate Change Conference The number of customers affected also dropped to less
(COP21) in November. The Energy Saving Plan for the Built than 23,000, compared with 32,000 during Vicente. These
Environment 2015~2025+ sets out a target of reducing figures highlight the resilience of CLP Power’s systems.
Hong Kong’s energy intensity by 2020 and outlines the
policy, strategy and key actions that can help Hong Kong
achieve energy efficiency and combat climate change.
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The Government’s policy objective related to energy CLP Power

efficiency and conservation is to increase and sustain the
conservation of energy in order to reduce the growing Committed to energy efficiency and conservation, as well
trend of energy use. To achieve this objective, the Energy as helping Hong Kong to move towards a green and smart
Efficiency Office (EEO) was set up under the Electrical lifestyle, CLP Power has adopted a four-pronged approach
and Mechanical Services Department (EMSD) in 1994 to in changing people’s habits and helping them to reduce
spearhead and coordinate the Government’s efforts to their energy consumption. These steps are:
promote energy efficiency and conservation. Over the • Educating the public;
years, the Government has developed standards and • Providing customers with information and energy-
guidelines and implemented different programmes to saving tips;
promote the community’s understanding and awareness • Equipping customers with tools and technical support;
and to take appropriate action in achieving energy saving. • Helping with enablers to make greater energy efficiency
Some key initiatives include the implementations of the possible.
Mandatory Energy Efficiency Labelling Schemes, the
Buildings Energy Efficiency Ordinance and the Scheme CLP Power launched the Eco Power 360 in 2016, an
on Fresh Water Cooling Towers, the launch of the Energy enhanced online home energy assessment tool. It enables
Consumption Indicators and Benchmarks as well as the electricity consumption comparison against similar homes
Energy Saving for All Campaign. in the neighbourhood, and provides energy use data,
consumption projection and recommendations on energy
Source: http://www.enb.gov.hk/en/about_us/policy_responsibilities/ saving for customers. Customers can also join the Eco
energy_efficiency.html
Rewards Scheme and participate in designated activities to
earn Eco Points for gift redemption.
In 2015, the Government unveiled the first-ever
Energy Saving Plan for Hong Kong’s Built Environment
In addition, a mobile app promoting smart living was
2015~2025+, which set a new target of reducing Hong
launched in July 2017. It allows customers to manage their
Kong’s energy intensity (energy demand per unit of
electricity accounts, settle bills, shop for energy efficient
economic output) by 40% by 2025 using 2005 as the base
appliances, and gain quick access to useful information
(or about 6% actual reduction in energy consumption in
including the locations of CLP Power customer service
2012). It analyses energy use in Hong Kong and sets out
centres. The company also opened the new Smart Energy
the policy, strategy, target and key actions that can help
Experience Centre in April 2017 to introduce one-stop
Hong Kong achieve the new target.
advisory services on smart technology for homes and
Source: http://www.enb.gov.hk/en/energysavingplan.html
offices.
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In 2015, CLP Power introduced a world-first community HK Electric

programme that combines energy saving with a mission
to help the less fortunate in society. The Power Your The vast majority of Hong Kong’s energy-saving
Love Programme encourages CLP Power residential opportunities arise in the built environment. HK Electric’s
customers to save energy and contribute to the well- policy is to engage regularly with various stakeholders in
being of society by transferring units of electricity saved the community, including building owners, district council
to offset the electricity bills of households in need, helping members and property managers, to promote EE&C.
to ease their electricity expenses. In 2017, a record 17GWh
of electricity was saved in the programme by more than For non-residential customers, in 2017, HK Electric carried
410,000 customers, equivalent to the annual electricity out more than 50 free energy audits. These audits not only
consumption of 4,000 households. identify practical measures for energy savings, but also
qualify eligible customers to apply for financial support from
For business customers, CLP Power provides an energy collaborating banks in order to implement improvements
audit service to assess their energy efficiency performance. through the Energy Efficiency Loan Scheme.
This helps them identify savings opportunities and areas
in need of improvement. More than 160 audits were For owners of residential buildings, subsidies are available
conducted in 2017. CLP Power also launched the Smart through the HK Electric Smart Power Fund on a 50/50
Enterprise Service app, deploying an Internet of Things matching basis to implement projects that will improve the
platform for total energy management solutions which energy efficiency of existing building services installations
enables customers to control and monitor their electrical for communal use. These projects often involve the
equipment and devices remotely. replacement of lift driving systems, and public lighting and
air-conditioning fixtures with more efficient models.
Under the new SCAs, two important new energy efficiency
funds are being established. The new CLP Eco Building To encourage the implementation of more extensive
Fund will promote energy saving for buildings and the CLP energy efficiency works or upgrades under the Smart
Community Energy Saving Fund aims to encourage wider Power Fund, HK Electric doubled the upper limit of the
usage of energy efficient electrical appliances. subsidy from HK$200,000 to HK$400,000 in January 2017.
Under special circumstances, funding of up to HK$500,000
To promote green motoring, CLP Power has further is also available for highly impactful projects.
expanded its EV charging network to 50 charging stations
with 155 charging points across its service area as of May During the year, HK Electric approved 20 Smart Power
2018. In parallel, CLP Power has upgraded the mobile app Fund applications amounting to HK$6.2 million worth of
which now provides users with the latest status of CLP subsidies. Since the inception of the Fund in June 2014, a
Power’s charging stations and helps drivers locate their total of 49 applications have been approved.
nearest available charging points.
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4 Advanced Metering Infrastructure (AMI)/Smart Grid deployment
CLP Power
Figure 10: CLP Power uses drones to inspect
power lines generation facilities, significantly
Smart meter is a key enabler in making the electricity
system smarter and greener, which will in turn support improving efficiency and safety
the Government’s vision to develop Hong Kong into a
smart city. CLP Power has made recommendations to the
Government for a wide implementation of smart meters in
Hong Kong.
CLP Power is also making use of new technology to

transform conventional transmission and distribution
networks into a smart grid. Drones are being deployed to
inspect power lines and generation facilities to improve
efficiency and safety, and Virtual Reality technology is
being applied to operational and safety training to enhance
its effectiveness. Beyond that, new ways of vegetation
management for transmission overhead lines by applying HK Electric
Airborne/LIDAR (Light Detection and Ranging) technology
and digital aerial imagery are being assessed through HK Electric initiated a pilot project to evaluate the potential
the implementation of pilot projects. Like other utilities for widespread deployment of smart meters and Advanced
with a long history, CLP is also faced with the challenge Metering Infrastructure (AMI) technology across the
of enhancing the asset health management in a cost- network. Smart meters were deployed in various high-
effective manner and CLP is deploying intelligent condition rise building scenarios to test performance, and it is also
monitoring technologies for critical power transformers planned to install them for village-houses and other sites
with the vision of extending to other critical asset plants. posing potential safety risks for manual meter reading. The
outcome of this study will provide important insights that
will help to modernise customer services and operations,
and will contribute to the ongoing development of the
long-term strategy to deploy AMI technology.
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Challenges faced and solutions taken AMI Roll-Out Plan
Hong Kong has a unique cityscape – CLP Power

a high density urban area with many
tall buildings which brings complex CLP Power launched the Smart Energy Programme in 2017 providing the
technical challenges for installing opportunity for 26,000 residential customers to take part in a one-year demand
and connecting smart meters and side management pilot study to examine how they could better manage their
recovering data efficiently and consumption and make real savings on bills.
effectively. Most of the meters and
electricity supply equipment in urban Smart meters directly connected to CLP Power’s energy management and
areas are being installed inside meter customer service systems were installed and customers were incentivised to
rooms at each floor, isolated by use less electricity at times of peak system demand, save money by shifting their
concrete walls and doors. Building the electricity usage to off-peak periods, and use new smart phone apps to receive
Field Area Network was challenging energy saving tips along with up-to-date information on their consumption.
due to the high communication The company hopes to extend these benefits to more customers in the future.
signal drop because of the multiple AMI Offerings to Customers and its Benefit
steel reinforced concrete walls
design of the meter rooms in high- CLP Power
rise buildings affecting inter-building
RF mesh communication and also Smart metering provides a wide range of benefits in aspects of demand side
the weak mobile signal inside the management, public safety, system reliability, asset performance as well as
meter room affecting the backhaul operational efficiency. The following are some of the new services and benefits
communication. of smart meter:
• Timely consumption information: Customers are able to review consumption
The mitigation measure is to identify data online up to the last hour and then implement their energy saving
and install the data collector in meter measures in a timelier manner.
rooms at lower level or another • Various consumption alerts: Customers will receive alert messages when
appropriate location where the signal their consumption levels reach a pre-set threshold. This could help them
is stronger for each building. Other make informed decisions on how to change their behaviour to achieve their
communication technologies such as energy saving targets.
Power Line Communication are also • Safety and operational efficiency: It can reduce safety risks and remove the
being explored. errors associated with manual meter reading as well as the disturbance to
customers if the meter is installed inside customers’ premises. It has also
reduced the chance of bill estimation due to door-lock for meter readings
of non-smart meters.
• Outage and fault detection: Making use of the smart meter event and data,
CLP Power can promptly detect supply outage and faults to upkeep supply
reliability and public safety.
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HK Electric
HK Electric explored the adoption of an Advanced Metering Infrastructure and undertook a trial of Smart Meter Data
Analytics. The results of this pilot programme indicated that features such as load patterns, neighbourhood comparisons,
high consumption alerts and bill projections can provide a better picture of customers’ energy consumption patterns and
will help HK Electric formulate a strategy for future development.
5 Latest Technologies or Innovations Deployed
CLP Power
Technology advances are changing the way CLP Power does business. The company is committed to apply the latest,
proven technologies and innovations to enhance its operation performances. Beyond that, the company is taking several
innovative ideas through pilot projects in order to assess the new possibilities and how to best implement them across
the business. The four implemented projects presented in this section as examples are:
a) Airborne LIDAR Sensing Technology for Vegetation Management
Vegetation management is an important aspect of the helicopter with LIDAR equipment and a high resolution
maintenance and operation of the transmission grid camera flies over the transmission lines at hundreds of
because the growing trees under the lines has been feet above ground to capture the geospatial and 3D
one of the possible causes of outage on the grid. The data of trees and other objects in the proximity of CLP
conventional approach of CLP Power’s vegetation Power’s transmission facilities.
management was done with visual inspection on
the ground by patrolling along the circuits of the The trial project results are remarkable as the
transmission grid manually. The field crews visually technology gives a tremendous amount of data that
determine the clearance between tree branches and was never available in visual inspection on the ground,
the overhead line conductors, and identify which trees as well as the opportunity to have a 3D geospatial
could possibly be a threat. The visual inspection at model of CLP Power’s facilities and their surroundings.
ground level may not be able to identify all potential The valuable information shows precisely how far CLP
threats. Power’s transmission lines are from the ground or
from any obstruction, how close trees are, as well as
CLP Power has recently trialled a new way of vegetation potential obstruction of any kind. The information is
management by applying the technology known as helpful both to vegetation management and to the on-
Light Detection and Ranging (LIDAR) and digital aerial going engineering and operations of the system.
imagery through the implementation of pilot projects. A
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b) Virtual Reality/Augmented Reality Technologies for Simulated Workplace Training
With Hong Kong’s continuous growth, demand for adopted AR technology providing just-in-time training
qualified professionals to support its sustainable facilities on 11kV switchgear operation.
development is increasing. In response to that demand,
in 2017 CLP Power established a new CLP Power Figure 11: CLP Power adopts Virtual Reality
Academy. to provide zero-risk training through the
simulated experience of transmission tower
In addition to instructor-led classroom and workshop climbing and overhead line maintenance work
training, CLP Power has adopted Virtual Reality (VR)
providing zero-risk training through the simulated
experience of transmission tower climbing and
overhead line maintenance work. In addition, the
students can learn all the necessary safety precautions
and techniques before climbing up a real tower.
Another VR facility simulates a confined working
space environment to help students acquire the safety
precautions required in various working scenarios that
were not emulated in a conventional physical mock-
up. In Augmented Reality (AR) era, CLP Power has
c) Robotics Adoption in Power Stations
Robotics adoption is one of the digitalisation initiatives In addition, welding robotics are being introduced as a
to improve the process safety and productivity. In trial. The welding robots could operate continuously,
2017, a wall climbing robot was introduced to inspect maintain consistent quality and relieve the welders’
boiler tubes in CLP Power’s coal-fired unit. The robot workload. Moreover, designated cleaning robots are
can crawl on vertical walls and perform seven to eight proposed to operate in confined spaces like ash silo.
boiler tubes thickness inspections simultaneously. The This robotics adoption could uplift the process safety
robot has the advantages of a light weight, low energy and maintain continuous operation. The company will
consumption, flexible movement and high adaptability continue exploring any smart robotic applications that
to different wall surfaces. This application could reduce bring benefit to the safety and productivity of power
the traditional requirement of scaffolding for the plants.
inspection and minimise the risk exposure of staff work
at height along the scaffolding works.
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d) Substation Building Information Modelling (BIM)
CLP Power owns many substations and each is By implementing these projects, CLP Power has
uniquely designed to fulfil various site concerns such obtained experience in two key areas - system
as safety, compliance with nearby communities, cable integration and change management. For system
outlets and lifting space. In order to achieve an effective integration, it is of crucial importance how the new
design, CLP Power has applied Building Information system is integrated with existing devices and aligned
Modelling (BIM) technology to streamline the process with different suppliers. The effectiveness of the work
of establishing transmission substations from planning, process will be degraded dramatically if only the new
design, construction, operations and maintenance. A system is considered.
substation 3D digital model is built during the planning
and design stage. This model facilitates discussion Change management is another challenge. Early
between planning and site engineers and enables the engagement with end users, mutual understanding
early identification of any potential concerns in the on functionalities and operational requirements, staff
future. For example, this enhances the arrangement training and standardisation of new work process are all
with power cable and drains pipes, avoids congested key elements when undertaking change management.
cables at critical spots and ensures sufficient spaces for These will be addressed and taken care of once the
operations and maintenance. development direction is chosen.
HK Electric as the diagnostic testing for 11kV distribution cables

since 2010 with the aim of assessing the cable circuit
To enhance the reliability of the plants in the transmission conditions and pinpointing weak components before they
network, all 275kV and 132kV gas insulated switchgears are fail. To further enhance the effectiveness in identifying
monitored by online partial discharge monitoring systems. the weak components in a tested cable circuit, a VLF
In addition, the conditions of the oil-insulated transmission monitored withstand testing technique was introduced
transformers are monitored by online dissolved gas in November 2013. Based on the diagnostic test results,
analysis or total combustion gas systems. recommendations were made for the timely replacement
of identified weak components to enhance the circuit
As a further step, online partial discharge monitoring reliability.
systems are being progressively installed at the zone
substations for monitoring the conditions of the 11kV air The distribution cable circuit failure rates have been on a
insulated switchgear and the cables connected to them. decreasing trend since the introduction of VLF diagnostic
HK Electric has also introduced an online partial discharge testing.
monitoring system on some 275kV and 132kV large power
gas insulated transformers. Automatic Identification System (AIS) has been used
since 2015 to prevent submarine cable damage at the
Very Low Frequency (VLF) Tangent Delta (TD) measurement East Lamma Channel cable reserve zone. The AIS detects
and Partial Discharge (PD) mapping have been adopted stationary marine vessels with the potential of causing
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cable damage by anchorage in the cable reserve zone and standard quick charging stations on Hong Kong Island
initiates an alarm to alert appropriate action to prevent for public use. These chargers support multiple charging
cable damage. standards including the IEC Type 2 AC, CHAdeMO and CCS
DC Combo standards and provide quick charging services
Perfluorocarbon Tracer (PFT) Leak Location System has for EV models from different countries of origin. In addition,
been used since 2015 for the detection of leakage points HK Electric has upgraded all its public standard charging
on fluid-filled transmission cables. stations to medium or quick charging stations resulting in
a significant increase in usage. HK Electric currently has 13
To further improve work efficiency and to facilitate charging stations covering every district on HK Island and
digital transformation, an outdoor Wi-Fi system they are within 15 minutes driving distance.
was commissioned in Lamma Power Station for the
implementation of the Environmental Management HK Electric has explored the feasibility of re-using the
System, Warehouse Management System, LV Cutouts EV batteries from retired EV fleets to give them a second
Monitoring as well as linkage to the Corporate LAN system life. As a pilot, HK Electric is installing a set of retired EV
for outdoor work. batteries with sophisticated Battery Management System
to form backup energy storage in a distribution substation
HK Electric is proud of its commitment in using EVs for to provide LV ride through capability during voltage dips or
its internal operation and operates 114 EVs constituting short power interruptions on the grid side, thus enhancing
40% of its total car fleet. HK Electric continues to offer the reliability and quality of the electricity supply.
free charging for EVs at its public charging stations across
Hong Kong Island up to the end of 2018. To enhance user Unit L10 and L11 will adopt a range of advanced
charging experiences, HK Electric launched three multi- technologies so that the efficiency is 3% higher than unit
standard quick chargers in 2017 and now has four multi- L9.
6 Major Challenges or Transformation Affecting the Electricity Supply Industry
The Policy and Regulations of Energy Conservation and Efficiency
The Government’s policy objective relating to energy and to take appropriate action in achieving energy saving.
efficiency and conservation is to increase and sustain the Some key initiatives include the implementation of the
conservation of energy in order to reduce the growing Mandatory Energy Efficiency Labelling Schemes, the
trend of energy use. To achieve this objective, the Energy Buildings Energy Efficiency Ordinance and the Scheme
Efficiency Office (EEO) was set up under the Electrical on Fresh Water Cooling Towers, the launch of the Energy
and Mechanical Services Department (EMSD) in 1994 to Consumption Indicators and Benchmarks as well as the
spearhead and coordinate the Government’s efforts to Energy Saving for All Campaign.
promote energy efficiency and conservation. Over the
years, the Government has developed standards and Source: http://www.enb.gov.hk/en/about_us/policy_responsibilities/
energy_efficiency.html
guidelines and implemented different programmes to
promote the community’s understanding and awareness
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In 2015, the Government unveiled the first-ever Energy Saving Plan for Hong Kong’s Built Environment 2015~2025+, which
sets a new target of reducing Hong Kong’s energy intensity (energy demand per unit of economic output) reduction by
40% by 2025 using 2005 as the base (or about 6% actual reduction in energy consumption in 2012). It analyses energy use
in Hong Kong and sets out the policy, strategy, target and key actions that can help Hong Kong achieve the new target.
Source: http://www.enb.gov.hk/en/energysavingplan.html
Barriers to Promote CO2 Emission Reduction, Energy The success of energy efficiency and conservation
Conservation and Efficiency efforts is primarily dependent on concerted efforts from
different sectors of the community to change their energy
In 2014, the total GHG emissions of Hong Kong were consumption behaviour and habits, as well as the long-
about 44.9 million tonnes CO2-e or around 6.2 tonnes on a term impact it brings. Setting any targets on energy saving
per capita basis. requires a sound analytical foundation which should take
into consideration a number of key factors, including the
Source: https://www.climateready.gov.hk/files/pdf/HKGHG_
lifestyle of the public, weather, economic conditions,
CarbonIntensity_201612.pdf
population growth and any possible cost implications.
Considering the relatively low GHG level, a further

Opportunities to Apply New Technologies
reduction could be challenging. Given Hong Kong is a
service-based economy, electricity generation is likely to
CLP Power
remain the largest source of local GHG emissions.
CLP Power continues to adopt the latest and most relevant

Source: http://www.epd.gov.hk/epd/english/climate_change/hkactions.
html technologies to improve the performance of its power
system. CLP Power is one of the few power companies
It is noteworthy that GHG emissions in Hong Kong dropped worldwide which develops smart grid in a vertically
substantially in 1994 due to the import of nuclear power integrated approach, covering all aspects including power
from China. Furthermore, natural gas was introduced for generation, transmission and distribution, as well as
local generation in 1996. In order to further reduce GHG customer service.
emissions from local generation, a substantial revamp of
fuel mix is needed. However, the environmental benefit of Some of the advanced smart features incorporated in the
a cleaner fuel mix must be weighed together with other power system include:
considerations, such as electricity supply reliability and its • Real-time monitoring system, a home-grown system
cost implications. that comprises intelligent sensors installed at key
generation facilities to allow engineering staff to
It can be observed from global experience that as the continuously monitor and analyse different parameters
economy is getting more developed, the reliance on at the power plants such as temperature and pressure
electricity in the overall energy use is also increasing. and vibration, in order to quickly identify potential faults
for maintenance;
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• 11kV overhead line automatic restoration system which so that they may pay at convenience stores without
automatically isolates the faulty section of the overhead having to print their bills while e-Receipts are available for
line, and shifts to other sources for immediate supply customers to manage bill payments more conveniently
restoration; and environmentally friendly. HK Electric also introduced
• Intelligent transmission substations which have a mobile payment app ’AlipayHK‘ for their customers in
installed the most advanced and fully automated October 2017 which allows them to view their latest bill
equipment including the self-healing system can balances and pay bills through a one-touch payment
significantly shorten the power restoration time from process. The use and promotion of EVs have been an
several minutes to less than one second; important focus for HK Electric. A significant increase in
• Smart distribution substations that enable CLP Power the broad-based use and promotion of EVs across Hong
to conduct online condition monitoring of electrical Kong was observed in 2017.
plants and auxiliary equipment at the substations;
• Online condition monitoring systems adopted at some To encourage and facilitate this trend, HK Electric launched
transformers and switchgears for conducting round- a series of initiatives including an online tool that generates
the-clock health checks; and tailor-made preliminary proposals on the installation of
• Drones being deployed to inspect power lines and EV charging facilities at multi-storey buildings, real-time
generation facilities to improve efficiency and safety. updates on the occupancy of HK Electric’s charging
stations and a trial system to book slots at EV charging
HK Electric stations. In 2017, 26 buildings used the company’s services
to install charging infrastructure on their premises.
HK Electric provides its customers with consumption and
benchmark information on their electricity bills to help HK Electric also keeps its customers informed of company
them understand their power usage. For its non-residential updates with the quarterly newsletters ’HK Electric On-line‘.
customers, a load profile enquiry service is offered to help The ’HK Electric Low Carbon App‘ also provides information
manage their energy use more efficiently. On its corporate on energy efficiency and safety, helps customers estimate
website, HK Electric offers two online tools – Electricity@ electricity consumption and learn more about the carbon
Home and Electricity@Office – that allow customers to footprint, recommends saving plans and tips to make
conduct virtual energy surveys, with details on power used them wiser energy users and offers tips to facilitate the
for home appliances, energy efficiency, power quality and rectification of inspection defects which can potentially
tariffs charged. shorten the lead time in obtaining electricity supply.
In addition, HK Electric customers can simply register The new features for EVs, including the locations and types
the Account-On-Line Service for viewing account of charging stations, navigation functions and real-time
information, arranging e-bills and processing various occupancy status of all 13 charging stations are readily
account applications through smartphones. HK Electric available in the App.
also provides a QR code to customers receiving e-bills
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C EPS I 2018
The EV mini website was enriched with

Figure 12: CLP Power further expands its EV charging network and
informative content including the list
continues to provide free charging service for EVs until the end of 2018
of EV equipment suppliers and the list
of Registered Electrical Contractors
for EV charging installation. The
new ’Smart EV Charge Easy Online
Advisor‘ allows EV users, incorporated
owners and property management
companies to obtain a preliminary
report to assess the installation of EV
charging facilities at their buildings
just seconds after answering some
simple questions.
7 Other Related Activities or Initiatives
HK Electric Employee wellness and development remain a key focus at

HK Electric. HK Electric’s Employee Wellness Programme
HK Electric engages different community groups to offers a broad spectrum of work-life balance activities and
support and add value to communities, in particular on plans including physical exercise, interest activity groups
elderly care. In 2017, with the support of District Councils, and volunteering opportunities. All these aim to look after
NGOs, local committees and the company’s volunteer the physical, emotional, intellectual and social welfare
team, HK Electric continued the ’CAREnJOY for the of its staff. In 2017, HK Electric continued its’Health and
Elderly‘ programme to extend care to the elderly. Senior Happiness‘programme, featuring health talks, physical
citizens were recruited and trained as ambassadors so that fitness training and recreational activities.
they could encourage other elderly citizens to join local
service centres and seek help when needed, and generally The HK Electric Institute continued to nurture engineering
promote mutual support within neighbourhoods. The U3A experts, ensure knowledge transfer and provide advanced
(University of 3rd Age) Network of Hong Kong co-founded power engineering training programmes for technical staff
by HK Electric and the Hong Kong Council of Social Service to cope with the demanding and ever-changing operating
in 2006 also provides retirees with opportunities to pursue environment of the electricity industry. Since the signing of
lifelong learning and contribute to the community through the Memorandum of Understanding with The Hong Kong
volunteering. Polytechnic University in 2015, the Institute has continued
to integrate the field knowledge of power engineering
into the curriculum and nurture power experts through
postgraduate education programmes.
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C EPS I 2018
In 2017, around 500 participants attended 22 modules

Figure 14: CLP Power volunteer gives practical
conducted by experienced staff of HK Electric or retirees
energy saving tips to the elderly to promote the
from various disciplines. HK Electric has also worked with
reputable manufacturers to deliver lectures to enrich the smarter use of electricity at home
syllabus of the Institute. The Silk Road International School
of Engineering (SRISE) has launched its first university-
industry collaboration project. HK Electric has signed a
Memorandum of Understanding with The Hong Kong
Polytechnic University, Xi’an Jiaotong University and the
State Grid Corporation of China to deliver a course for ’Belt
and Road‘ countries on the design and operations of the
power distribution system.
Figure 13: Community gatherings and electrical

safety talks are introduced under the ’CAREnJOY
for the Elderly‘ programme
Figure 15: University-Industry Collaboration

Launching Ceremony under the Silk Road
International School of Engineering
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INDONESIA C EPS I 2018
Jakarta USD932.259
billion
54.6645
GW
Area:
1.919
million km2
Currency:
Indonesian
Electrification Ratio:
91.27%
Rupiah
Population: (IDR)
261.12
million
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C EPS I 2018
1 Power Demand by Sector
Table 1: Total Power Consumption by Sector
Sector Total Power Consumption as of 2017 (GWh)

Industrial 72,238.37
Residential 94,457.38
Commercial 41,694.79
Others 14,743.18
Total 223,133.72
*Based on PLN’s Annual Report 2017
National Energy Policy Figure 1: PLN‘s Transmission Tower
The National Energy Policy refers to Government

Regulation No. 79/2014, as below:
Efficiency: Reduce energy intensity by 1% per year to 2025.
New and Renewable Energy: Increase share of ‘new and

renewable energy’ in primary energy supply to reach 23%
by 2025 and 31% by 2050.
Climate Change: Reduce GHG emissions by 26% from BAU

level by 2020, increase to 41% reduction with enhanced
international assistance.
Source:
PLN
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C EPS I 2018
Laws and Government Regulations

Figure 2: Overview of Electricity Market Structure
• Law No. 30 of 2009 (on Electricity).

Electricity system after the implementation of Law No.
• Government Regulation No. 23 of 2014 (on Electrical
30 of 2009.
Power Provision Business Activities).
• Presidential Regulation 4/2016 (on Electricity
Infrastructure Development Acceleration).
• ESDM Ministerial Regulation 10/2017 (on Principles in
Electricity Buy Sell Agreement).
• ESDM Ministerial Regulation 11/2017 (on Natural Gas Use
for Power Plants).
• ESDM Ministerial Regulation 12/2017 (on Renewable
Energy Source Use for Electricity Procurement).
Transmisi • ESDM Ministerial Regulation 50/2017 (on Utilisation of
Transmission Renewable Energy Sources for Power Supply).
• ESDM Ministerial Regulation 1567 K/21/MEM/2018
(on Approval of Electricity Procurement Business Plan
2018-2027).
Distribusi &
Ritel Figure 3: Daily Monitoring in Power Plant
Distribution
& Retail
Rumah Tangga Bisnis Industri

Households Business Industry
Pemain Independen Pelanggan

PLN
Independent Players Customers
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C EPS I 2018
Electricity Consumption or Demand in 2015-2017 and Expected Annual Growth Rate in the Next Decade (2018-2027)
Table 2: Electricity Consumption or Demand in 2015-2017 and Expected Annual Growth Rate in the Next
Decade (2018-2027) *Based on RUPTL 2018-2027
Peak Load
Economic Growth Sales (non-coincident)
Year (%) (GWh) (MW)
2015 4.7 200,600 32,959
2016 5.1 213,455 36,475
2017 5.2 223,530 37,626
2018 5.5 239,265 40,486
2019 5.5 255,932 43,178
2020 5.5 275,945 46,589
2021 6.5 296,515 50,035
2022 6.5 316,793 53,376
2023 6.5 337,234 56,755
2024 6.5 359,390 60,415
2025 6.5 381,698 64,058
2026 7.0 406,841 67,824
2027 7.0 433,852 72,149
Tariff Structure of Indonesia
In line with the Energy and Mineral Resources Minister • B-2/TR, 6,600VA – 200kVA (medium enterprises)
Regulation No. 09/2015 on the Amendment of the Energy
and Mineral Resources Minister Regulation No. 31/2014 on • B-3/TM, above 200kVA (big enterprises)
Electricity Tariff Provided by PT Perusahaan Listrik Negara
(Persero), there are 12 tariff groups stipulated by the tariff • P-1/TR, 6,600VA – 200kVA (medium government offices)
adjustment mechanism which consist of:
• I-3/TM, above 200kVA (medium industries)
• R-1/TR, 1,300VA (small households)
• I-4/TT, 30,000kVA above (big industries)
• R-1/TR, 2,200VA (small households)
• P-2/TM, above 200kVA (big government offices)
• R-2/TR, 3,500VA – 5,500VA (medium households)
• P-3/TR (public street lighting)
• R-3/TR, 6,600VA above (medium households)
• Special Services (L/TR, TM, TT)
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The adjustment of the 12 tariff groups is conducted every three months should there be a necessary change of:
• Currency exchange of the US dollar against the Indonesian rupiah
• Indonesia Crude Price (ICP), and
• Inflation
The description of the electricity tariff adjustment imposed by PLN for the year 2016 as a realisation of the application of
the tariff adjustment calculation is as follows:
Figure 4: Realisation of Electricity Tariff for Customer Segment that was Applied Automatic Tariff Adjustment in 2016
2,000
Biaya Pemakaian (Rp/kWh) dan Biaya KVArh (Rp/KVArh)
1,500
1,000
500
Januari Februari Maret April Mei Juni Juli Augustus September Oktober November December
January February March April May June July August September October November December
R-1/TR 1300 VA s/d 2200 VA, R-2/TR 3500 s/d 5500 VA, R-3/TR 6600 I-4/TT diatas 30,00 kVA keatas***)
VA keatas, B-2/TR 6600 s/d 200 kVA; P-1/TR 6600 VA s/d 200 kVA*);
P-3/TR*)
B-3/TR 300 kVA keatas, 1-3/TM 200 kVA keatas**) & P-2/TM diatas L/TR, TM, TT
200 kVA**)
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Total Amount of Energy Consumption by the Customer Sectors of Industrial/Commercial/Residential
Table 3: Electricity Sales (GWh) per Customer Category
Customer Category 2016 2015 2014

Households 93,635 88,682 84,086
Business 40,074 35,978 36,282
Industry 68,145 64,079 65,909
Others 14,150 13,106 12,324
Total 216,004 201,845 198,602
Table 4: Percentage Growth of Electricity Sales per Customer Category
Customer Category 2016 2015

Households 5.58% 5.47%
Business 8.37% 1.92%
Industry 6.35% (2.78%)
Others 7.96% 6.34%
Total 6.49% 2.14%
Electricity Subsidies among Generation and T&D Sectors in Indonesia (including renewable electricity)
As the executor of Public Service Obligation (PSO) in the field of electricity supply, PLN gets subsidies from the government.
This is because PLN is required to provide power at a selling price affordable by all customers, even if the sale price is
below the average cost of electricity supply (BPP).
This subsidy is calculated based on a negative difference between the average selling price of each class of reduced rates
of electricity supply and the basic cost of each class fare. (See explanation ‘Electricity Subsidies’; ‘Cost of Supply’ and
‘Electric Power Rates’).
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C EPS I 2018
Until the end of 2016, most customers still pay PLN power
Figure 5: Maintenance Work on Transmission Tower
consumption with the subsidy rates (except the subsidiary
customers of PT PLN Batam and PT PLN Tarakan which
are rated regionally). In 2016, the average value of the
consolidated cost of supply including subsidiaries such as
PT PLN Batam and PT PLN Tarakan amounted to IDR1,265/
kWh, while the cost of supply without PT PLN Batam and
PT PLN Tarakan amounted to IDR1,247.5/kWh. The average
selling price consolidation tariff (including a subsidiary of
PT PLN Batam and PT PLN Tarakan) amounted to IDR994/
kWh, down from IDR1,035/kWh in 2015. While the average
selling price relative electricity without subsidiary of PT
PLN Batam and PT PLN Tarakan in 2016 amounted to
IDR1,003.6/kWh.
Table 5: Electricity Power Production
Electricity Power Production (GWh) 2017 2016 2015

Own Production
Petroleum 3,611 4,673 5,783
Coal 101,244 91,701 90,275
Natural Gas 46,355 51,890 46,039
Geothermal 4,096 3,958 4,392
Hydro 12,425 13,886 10,004
Solar and Wind 5 6 5
Biodiesel and Olein 239 344 133
Lease 13,447 17,352 19,841
Purchase 73,234 64,802 57,510
Total Power Production 254,659 248,611 233,982
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The Structure of Installed Generating Capacity by Producers (public utilities and IPPs)
Table 6: Installed Capacity (MW) Figure 6: Maintenance Works

in Plant
Installed Capacity 2017 2016 2015
Ownership Status
PLN 39,651.79 39,785.06 38,265.25
Independent 13,269.93 11,370.87 8,964.54
Power Producer
(IPP)
Lease 3,004.24 3,508.56 3,629.48
Total 55,925.96 54,664.49 50,859.28
The Policy of Renewable Energy and Major Regulatory Mechanism of the Renewable Law
The Regulation of Minister of Energy and Mineral Resources No. 12/2017 and No. 50/2017 on the Utilisation of Renewable
Energy for Electricity.
The Role of Public Utility in the Renewable Energy Law
• Providing Road Map of Renewable Energy Development Programme in Long-Term Electricity Development Programme
(RUPTL).
• Providing Model of Contract for RE- IPP Issued PLN Regulation No. 357.K/ DIR/2014: Guidance of Renewable Energy
Power Generation Connection into PLN’s Distribution Line.
Environmental Problems of Electricity Supply (including generation and T&D sectors)
PLN must also take responsibility to preserve the environment, utilise renewable energy, and focus on the development
of geothermal and hydropower energy. Coal energy remains PLN’s mainstay, but future efforts will concentrate on more
environmentally friendly and cleaner coal technology.
The clean coal programme will be developed by utilising upgraded coal technology to obtain coal with better quality. In
addition, PLN will commence the implementation of its smart grid initiative and will expand its application if necessary.
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C EPS I 2018
The Strategic Plan to Reduce Greenhouse Gas Emissions
PLN has consistently made efforts to suppress future CO2 emissions, among others:
• Prioritising the development and construction of renewable energy power plants, namely hydro energy and geothermal
energy.
• Continuously developing solar energy plants and wind energy plants wherever possible; particularly replacing diesel
power plants.
• Implementing Clean Development Mechanism (CDM) and Verified Carbon Standard (VCS) in accordance with the
Kyoto Protocol mechanisms in the development and construction of renewable energy power plants to obtain credit
(financial benefits) as an effort to reduce greenhouse gas emissions.
• Applying the concept of Green Energy or E-Green on the management of power generating units within PLN.
5 The Latest Development and Deployment of New Technologies
We continue to drive innovation by building new and renewable energy sourced power plants, mainly to supply electricity
in remote areas using energy sources that vary according to local conditions, including bio energy, wind energy, solar
energy and micro hydro energy. We also intensify efforts to develop geothermal power plants in Indonesia, which has
the greatest potential reserve in the world. In order to further reduce the use of oil-fired power plants, we are intensely
looking into Compressed Natural Gas (CNG) technology as an alternative energy source for peaked power plants.
In certain areas where the electricity supply is still inadequate, we have commissioned mobile power plants to augment
the electrification rate while maintaining reliability of electricity supply. In 2016, we instructed the construction of mobile
power plants which can be delivered in six months to some areas such as in Nusa Tenggara Barat, North Sumatra,
Lampung, Bangka Belitung, Pekanbaru in Riau, and West Kalimantan.
We also intensified several innovations with the support of information technology related to quality management, one
stop service, accounting, project management administration, power plants performance evaluation, primary energy
management, administration of customer data, metering, human resource system, and more.
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Figure 7: PLN’s Coal Plant
Source: PLN
6 Major Issues or Transformation Impacting the Electricity Supply Industry in Indonesia
Major electricity issues in PLN:
• 35,000MW Power Plant Project.

• Rural Electrification Programme.
• New and Renewable Energy Programme.
• Service Improvement for the Community.
• Targeted Subsidies.
• Improvement on Operational Efficiency.
• Supporting Economic Growth.
116
JAPAN C EPS I 2018
Capital: Currency: Installed Capacity:
Tokyo Japanese 272.9 GW
Yen (excluding self-generators, as of

31 March 2018)
Area:
377,974 GDP:
Electrified Rate:
km2
USD4.872 100%
trillion (as at December 2017)
Population:
126.6
million
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C EPS I 2018
1 Country Information
Power Demand by Sector (Supplied by Electric Utilities)
Table 1: Power Consumption
Actual Power Change from Actual Power

Consumption in FY2015 Consumption in
Sector FY2015 (MWh) (%) FY2016 (MWh)
Residential (Lighting) 266,854,503 101.8 271,811,401
Industrial & Commercial 570,664,093 101.0 576,428,389
Designated Service Districts 4,639 742.45 3,444,266
Power for Station Operation 4,018,495 11.39 45,805,652
Total 841,541,730 106.6 897,489,708
Note: Figures exclude consumption of independently generated power and power demand in small islands
Source: ANRE (Agency for Natural Resources and Energy) website, Electric Power Statistics
Japan’s Energy Supply Situation
Resource-poor Japan is dependent on imports for 94% of its primary energy supply. Thus, Japan’s energy supply structure
is extremely vulnerable. Following the two oil crises in the 1970s, Japan has diversified its energy sources through increased
use of nuclear energy, natural gas and coal, as well as the promotion of energy efficiency and conservation. Despite
these improvements, oil still accounts for about 40% of Japan’s primary energy supply, and more than 80% of imported
oil comes from the politically unstable Middle East. Moreover, although Japan has one of the highest proportions of
electricity demand in total energy demand at over 40%, prospects for importing electricity from neighbouring countries
are very poor because Japan is an island nation. In addition, there is an urgent need for global warming countermeasures,
such as the reduction of carbon dioxide emissions from the use of energy. To ensure Japan’s stable electricity supply, it
is crucial to establish an optimal combination of power sources that can concurrently deliver energy security, economic
efficiency, and environmental conservation, while making safety the top priority.
For the future, it is important for Japan’s energy mix to continue to include a certain level of nuclear energy premised
on ensuring safety, while maximising the use of renewable energy and using a reasonable proportion of thermal power
considering the stability of fuel supply.
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C EPS I 2018
The ’Strategic Energy Plan‘ decided by the government in April 2014 also states that nuclear power is an important base
load power source that can, strictly premised on safety, contribute to the stability of the supply and demand structure of
energy.
Source: FEPC (Federation of Electric Power Companies of Japan), Electricity Review Japan 2017 p2
Figure 1: Dependence on Imported Energy Sources by Major Countries (2014)
97
100 9494
(%) 90
Nuclear Energy not included
82
75 in domestic energy
80 75
69
Nuclear Energy included in
61 domestic energy
60
49
43
40 35
40 34
19 16
20 15 13
12
9
Russian
Canada Federation
0
Japan South Italy Germany France U.K. India U.S.A China Brazil
Korea
-20
-40
-60 -58
-68
-80 -77
-84
Source: IEA “World Energy Balances (2016 edition)”
Data: FEPC (Federation of Electric Power Companies of Japan), Electricity Review Japan 2017, p2
http://www.fepc.or.jp/english/library/electricity_eview_japan/
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C EPS I 2018
Basic Act on Energy Policy

Figure 2: Japan’s Reliance on Middle East Crude Oil of Total Imports
The basic policy on energy supply and

100
demand in Japan is determined under
(%)
the Basic Act on Energy Policy, which
entered into effect in June 2002.
This act lays down the overarching
principles framing energy policy -
namely, securing a stable supply,
90 89.1 environmental suitability, and the
utilisation of market mechanisms -
87.1 and specifies the responsibilities of
88.3 86.6
central and local government and
suppliers and the public’s ’duty of
84.6
82.5
effort’ necessary to implement these
principles.
80
78.6 The act also requires the
establishment of a ’Basic Energy Plan’
78.2
by the government that provides
“basic policy on measures on energy
supply and demand,” “measures that
71.4 71.5 should be taken in relation to energy
70 supply and demand on a long-term,
comprehensive, and systematic
68.8
basis,” and “technologies related to
energy where intensive measures
should be taken for their research and
development” required to implement
these measures. The government is
0 charged with reviewing this plan at
’65 ’70 ’75 ’80 ’85 ’90 ’95 ’00 ’05 ’10 ’15 (FY)
least every three years and amending
it, if necessary, in light of changes in
Source: IEA ”WORLD ENERGY BALANCES (2016 edition)”
Data: FEPC (Federation of Electric Power Companies of Japan), the energy environment.
Electricity Review Japan 2017, p2
http://www.fepc.or.jp/english/library/electricity_eview_japan/ Source: JEPIC (Japan Electric Power
Information Centre), The Electric Power
Industry in Japan 2018, p8
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C EPS I 2018
Evolution of the Basic Energy Plan energy security situation became critical. The situation
also caused energy costs and emissions of greenhouse
gases to rise, severely impacting economic and industrial
The first Basic Energy Plan was formulated pursuant to activities and measures to combat global warming.
the Basic Act on Energy Policy in October 2003. This was
followed by a second plan in March 2007 and a third in Source: JEPIC (Japan Electric Power Information Centre),
June 2010. The Electric Power Industry in Japan 2018 p9
The third plan set the target of doubling both the energy Figure 3: Working Conditions within the Fukushima
self-sufficiency ratio1 and the self-developed fossil fuel Daiichi Plant Site (Tokyo EPCo)
supply ratio2, raising the energy independence ratio3 to
about 70%, and raising the ratio of zero-emission sources
(nuclear power and renewable energy) in the energy mix
to about 70% by 2030.
i. The proportion of domestic primary energy supply
accounted for by domestic (renewable, etc.) and
semi-domestic (nuclear) energy sources.
ii. The proportion of fossil fuels supplied in Japan
(imported or produced domestically, currently
accounting for approximately 80% of the domestic
primary energy supply) sourced from projects in
which Japanese firms have interests (independent
development concessions), either in Japan or abroad.
iii. Calculated using the same denominator as the energy
self-sufficiency ratio but adding fossil fuels sourced
from projects in which Japanese firms have interests
(independent development concessions) to the
Fourth Basic Energy Plan
numerator.
Following the formulation of the third plan, however, the The government responded by adopting a fourth Basic
energy environment was transformed, domestically and Energy Plan in April 2014. Chapter 1 of this plan outlines
internationally, by the Great East Japan Earthquake and the issues facing Japan, including the fundamental
the accident at Tokyo EPCo’s Fukushima Daiichi Nuclear vulnerability of the energy supply system due to high
Power Plant (Fukushima Accident), which forced Japan to dependence on overseas energy resources, public concern
drastically relook at its energy policy. about the safety of nuclear power generation, the impact
of rising electricity costs on the Japanese economy, and
The power generation mix returned to pre-first oil crisis the increase in greenhouse gas emissions. Chapter 2 goes
levels of dependence on imported fossil fuels, and Japan’s on to lay down the goal of creating a “multilayered and
diversified flexible energy supply-demand structure.”
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C EPS I 2018
Regarding nuclear power generation, Chapter 2 states that Chapter 3 outlines specific measures, including the pursuit
“dependency shall be lowered to the extent possible by of a comprehensive policy to ensure stable access to
energy saving and introducing renewable energy as well resources, the creation of an advanced energy-saving
as improving the efficiency of thermal power generation, society, the acceleration of the introduction of renewable
etc.,” while affirming its importance as “an important energy, the re-establishment of Japan’s nuclear energy
base-load power source contributing to stability of policy, and the development of an environment to enable
energy supply-demand structure, on the major premise the stable and efficient use of fossil fuels. It further calls
of ensuring of its safety.” On the subject of the use of for the promotion of electricity and gas market reform,
renewable energy sources, meanwhile, it states that the the promotion of cogeneration and the introduction of
government will pursue the introduction of higher levels storage batteries, the formulation of a roadmap for the
of renewable energy than proposed under the previous creation of a ’hydrogen society‘ and the leveraging of
Basic Energy Plans. Targets for the specific mix of these demand response.
and other power generation sources are set in the Long-
term Energy Supply and Demand Outlook announced in Source: JEPIC (Japan Electric Power Information Centre), The Electric
July 2015 and described below. Power Industry in Japan 2018, p9
Long-Term Energy Supply and Demand Outlook
The government considered what form a realistic and Thirdly, regarding thermal power generation, the outlook
balanced energy supply-demand structure should take calls for a two-pronged strategy of reducing thermal
given the principles laid down in the Basic Energy Plan, power’s environmental impact while raising the efficiency
and announced its Long-Term Energy Supply and Demand of coal and liquefied natural gas (LNG) power generation.
Outlook in July 2015.
As a result, nuclear power’s share of the electric power
Taking its overarching goal as the development of a more supply-demand structure in fiscal 2030 will be significantly
diverse, multilayered supply-demand structure in order reduced to around 20%-22% while renewable energy’s
to ensure supply stability, the outlook seeks to improve share will increase to around 22%-24%. The proportion of
Japan’s energy self-sufficiency rate beyond the level prior base-load power generated by hydro, coal, and nuclear,
to the Great East Japan Earthquake (approximately 25%). etc. will be in the region of 57%.
More specifically, it expects thoroughgoing energy (electric Source: JEPIC (Japan Electric Power Information Centre), The Electric
Power Industry in Japan 2018, p9
power) conservation efforts to bring electricity demand in
fiscal 2030 down to close to what it was in fiscal 2013.
Secondly, regarding renewable energy sources, the outlook

forecasts nuclear power being replaced by geothermal,
hydro, and biomass power sources which are capable of
stable output regardless of natural conditions, as well as
solar and wind power.
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Figure 4: Outline of Long-Term Energy Supply and Demand Outlook
Three Viewpoints Concerning Development of the Energy Mix
Energy self-sufficiency rate:

Securing Safety
Target:
Only 6% at present
About 25%, surpassing the pre-earthquake level of about 20%
Electricity cost:
Electricity rates have risen substantially since the earthquake. (Up by 30% Target:
for industrial users, 20% for households) The surcharge for purchasing Bring it down from the present
renewable energy in FY2016 is 1.8 trillion yen. (2.7 trillion yen if all of the level*
approved capacities start operation)
Major Premise
Greenhouse gas emissions: *9.7 trillion (current generation cost) = 9.2 trillion (fuel) + 0.5 trillion (FIT)
Due to NPP shutdowns and the increase of thermal power generation, Target:
the CO2 emissions (from energy sources) in FY 2013 were the worst ever. A reduction comparable with
those of western nations
Electric power demand Power source mix
Thorough energy efficiency

and conservation 196.1 (Total power generation)
billion kWh (17% lower than 1,278 billion kWh Geothermal
before the implementation power:
of the energy conservation 1.0% to 1.1%
measures) Power (Total power generation) Biomass power:
Economic conservation: 1,065 billion kWh 3.7% to 4.6%
growth 17%
(Power transmission/ Wind power: 1.7%
1.7%/year distibution loss, etc)
Renewable Renewable
Energy energy: energy: Solar power:
efficiency and 19 to 20% 22 to 24% 7.0%
conversation
+ renewable Nuclear power: Nuclear power:
energy account 17% to 18% 20% to 22%
for 40% Hydroelectric
power:
Electric power Electric power
8.8% to 9.2%
966.6 billion 980.8 billion
LNG: 22% LNG: 27%
kWh kWh
Coal: 22% Coal: 26%
Oil: 2% Oil: 3%
FY2013 FY2030 FY2030

(Actual value) *Values are approximate.
Source: Long-Term Energy Supply and Demand Outlook.
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C EPS I 2018
Fifth Basic Energy Plan
Under the Basic Act on Energy Policy, the Basic Energy Plan is to be revised at least once every three years. The year 2017
was the year of the next scheduled revision of the fifth Basic Energy Plan by March 2018. In August 2017, the Ministry of
Economy, Trade and Industry (METI) convened the Strategic Policy Committee of the Advisory Committee for Natural
Resources and Energy to commence discussion of revisions to the plan. At the first meeting, the government identified
issues with the present plan and outlined progress on the five indicators set forth in the previously described Long-Term
Energy Supply and Demand Outlook as of 2016.
Table 2: Basic Energy Plan
Actual
Estimated Target
Pre-quake Post-quake
FY2010 FY2013 FY2016 FY2030
(1) Proportion of electricity generated
from zero emission sources 35% 12% 17% 44%
(renewables + nuclear)
(2) Final energy consumption 380 million 360 million 350 million 330 million
(crude oil equivalent) kilolitres kilolitres kilolitres kilolitres
(3) CO2 emissions 1.14 billion 1.24 billion 1.14 billion 0.93 billion
(from energy use) tonnes tonnes tonnes tonnes
(4) Electricity costs
¥5.0 trillion ¥9.8 trillion ¥6.3 trillion ¥9.2-9.5 trillion
(fuel costs + FIT purchasing costs)
(5) Energy self-sufficiency ratio
20% 6% 8% 24%
(primary energy)
Source: Handout from 21st meeting of the Strategic Policy Committee of the Advisory Committee for Natural Resources and Energy
1 24
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At the first meeting, the government identified (1) and (2) as high priority targets. Regarding (1), the increase in installed
renewable capacity in recent years and the restarting of several nuclear reactors have raised the figure to 17%. However,
this still remains far below the 44% target. In contrast, steady progress is being made toward achieving the target for (2),
as Japanese industry becomes more energy efficient.
Regarding (4), the recent fall in the international price of oil has suppressed the cost of electricity. However, it is quite
possible that electricity costs could rise again in future should, for example, oil prices or FIT purchases increase.
Action on these indicators was further discussed with special reference to the restoration of Fukushima and the following
six issues.
i. Expand adoption of renewables as primary power sources.
ii. Further energy conservation.
iii. Restart of nuclear power plants while putting safety first.
iv. Reinforcement of access to thermal power generation resources.
v. Reform of the electricity industry balancing economic viability and the public interest.
vi. Outlook regarding scenarios to curb energy costs.
Source: JEPIC (Japan Electric Power Information Centre), The Electric Power Industry in Japan 2018, p10
Figure 5: Hamaoka Nuclear Power Plant’s Tsunami Protection Wall and Cement-Mixed Soil Embankment
(Chubu EPCo)
The cement-mixed soil embankments at the plant

are embankments created by mixing cement into soil
(primarily sold left over from the tsunami protection
wall construction), which are then covered with
mortar. The embankments have been constructed
on both sides of the tsunami protection wall and are
designed to prevent tsunami from inundating the
plant site from the east and west. The embankments
rise to a height of 22m to 24m above sea level.
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Overview of Electricity System Reform
The Great East Japan Earthquake and the resultant of • second phase, full liberalisation of entry into the retail
Fukushima Accident necessitated urgent action on electricity market by 2016.
issues including raising electricity rates, adjusting supply • third phase, legal separation of the transmission and
and demand and using a diversity of power sources in distribution sectors and elimination of the retail rate
the face of a supply crunch. In January 2012, the Expert regulation by 2018 through 2020.
Committee on the Electricity Systems Reform was
established under the Coordination Subcommittee of the The first phase was realised with the establishment of the
Advisory Committee for Natural Resources and Energy to OCCTO in April 2015, following the passage in November
conduct an expert review of the future of Japan’s electric 2013 of the revised Electricity Business Act which provided
power systems. for its establishment. In the second phase, a further
revision to the act was passed in June 2014, the Electricity
In its findings, published in February 2013 under the title Market Surveillance Commission (now the Electricity and
’Report of the Expert Committee on Electricity Systems Gas Market Surveillance Commission) was established
Reform,’ the Committee laid down three goals — (1) in September 2015 to strengthen the monitoring of the
securing a stable supply of electricity, (2) suppressing deregulated electricity market, and electricity retailing and
electricity rate increases to the maximum extent possible generation were fully deregulated in April 2016.
and (3) expanding consumer choice and business
opportunities for new market participants. It further An additional revision to the act, passed on 17 June 2015,
identified three main ways of achieving these goals, provides for the third phase of reforms, namely the legal
namely by (1) enhancing nationwide system operation, (2) separation of the transmission and distribution sectors.
fully deregulating the retail market and power generation, In this way, all the legislative changes necessary for the
and (3) further ensuring neutrality in the transmission and three-phase reform of the electric power system have
distribution sectors through legal separation. been completed. Preparations are now underway for
the legal separation of the transmission and distribution
The report divided the reform process into three phases sectors scheduled to be implemented in April 2020.
and identified the steps to be taken in each phase:-
• first phase: establishment by 2015 of an Organisation Source: JEPIC (Japan Electric Power Information Centre), The Electric
for Cross-regional Coordination of Transmission
Operators (OCCTO) to act as a command centre
responsible for managing supply and demand
spanning different service areas.
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Figure 6: Roadmap to Electricity System Reform

[Phase 1]
(Establishment of the OCCTO)
Implementation: February 2013 Implementation: April 2015
Approval of establishment
Establishment of
the OCCTO
Preparation for establishment of the OCCTO
Determination of policy on electricity system reform
Preparation of environment for full deregulation of retail sales
Transition to new
regulatory system
Detailed system design
Vitalisation of wholesale electric power market
Preparation for creation of new system for securing supply capacity
Preparation for hour-ahead market
Review, development and issuance of rules as preconditions for improving neutrality in transmission/distribution operations
Verification and implementation of means of securing power supply stability, including disaster response measures,
cooperation on transmission/distribution facility maintenance and operation, and supply securement
Source: Modified from the Report of the Expert Committee on Electricity Systems Reform (February 2013)
Data: JEPIC (Japan Electric Power Information Centre), The Electric Power Industry in Japan 2018 p12
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[Phase 2] Phase 3]
(Deregulation of entry into retail (Ensuring neutrality in transmission/ distribution;
electricity market) Deregulation of electricity rates)
Implementation: April 2016 Scheduled: April 2020
1) Formulation of plans for cross-regional supply and demand

2) Formulation of plans for improvement of interconnected lines and cross-regional transmission lines
3) Cross-regional supply and demand/grid operation
4) Supply and demand adjustment in times of supply shortages
Customer freedom to select electric utilities and supplier freedom to set electricity
rates extended to small-customer sector (including households)
Full deregulation of retail sales Establishment of requisite
(liberalisation of entry into retail Elimination of rate
Period of transitional system for customer
electricity market) regulations
measures for eliminating protection (last-resort
(end of transitional
rate regulations service, universal
measures)
service, etc.)
Review of competition conditions
1) Regulation of transmission/distribution (wheeling service fees, conduct of business, etc.)

2) Wholesale/retail market transaction monitoring, competition condition review, and rule development
3) Operations related to stable electric power supply, including issuance of supply orders and implementation of appropriate
rolling blackouts in emergencies
Elimination of regulations on Market monitoring

wholesale market
1) Obligation to secure supply capacity Full-scale implementation

Creation of new system for securing
2) Establishment of capacity market for future supply capacity transactions
supply capacity
3) System for power source procurement bidding in anticipation of future shortages
Creation of hour-ahead market Market-based cross-regional supply and demand adjustment
Creation of a real-time market Regulation of

transmission/distribution
and monitoring of
neutrality assurances
Legal separation Realisation of competitive

of transmission/
distribution sectors market environment
Preparation for system transition

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Energy Supply and Demand
Table 3: Energy Balance in FY2016
Hydraulic Effective
Power Recovery
Coal Renewable Generation Use of Nuclear
& Coal Oil & Oil Natural Town (excl. (excl. Wasted Power
Products Products Gas Gas hydro) pumped) Energy Generation Electricity Heat Total
Indigenous
32,565 19,858 113,938 0 763,018 650,845 584,568 148,965 0 0 2,313,757
Production
Import 5,040,677 9,075,867 4,615,551 0 40,774 0 0 0 0 0 18,772,869
Export -30,129 -1,281,634 0 0 -32 0 0 0 0 0 -1,311,795
Stockpile
-2,100 62,986 665 -755 0 0 0 0 0 0 60,796
Change
Domestic
Primary Energy 5,041,013 7,877,078 4,730,154 -755 803,760 650,845 584,568 148,965 0 0 19,835,627
Supply
Power
-3,120,864 -776,302 -3,135,085 -284,572 -582,333 -650,845 -358,210 -148,965 3,799,927 0 -5,257,249
Generation
Other
Transformation, -545,535 -696,604 -1,738,262 1,537,697 -206,377 0 -199,044 0 -345,471 863,256 -1,330,340
Loss, etc.
Total
-3,666,399 -1,472,906 -4,873,347 1,253,125 -788,710 -650,845 -557,254 -148,965 3,454,456 863,256 -6,587,588
Transformation
Statistical
4,239 176,425 3,959 871 4,814 0 0 0 35,111 -78,700 146,719
Discrepancy
Industry 1,366,205 2,303,942 62,672 265,194 314 0 27,314 0 1,243,315 876,103 6,145,061
Residential 0 528,632 0 408,393 9,540 0 0 0 969,403 1,119 1,917,087
Commercial &
4,129 551,810 0 366,138 4,814 0 0 0 1,143,584 64,734 2,135,209
Others
Transportation 41 3,057,639 0 2,819 0 0 0 0 63,044 0 3,123,543
Final Energy
1,370,376 6,442,023 62,672 1,042,545 14,668 0 27,314 0 3,419,346 941,956 13,320,899
Consumption
Source: ANRE website, Table of General Energy Statistics in Japan
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Fair Competition and Transparency
The electric power market in Japan has been progressively liberalised to ensure competitive neutrality on the basis of
a stable power supply by the former 10 general electric utilities, which consistently handle all functions from power
generation to distribution.
In 1995, a law was revised to enable Independent Power Producers (IPPs) to participate in the electricity wholesale market
in addition to the conventional Wholesale Electric Utilities. Then, in March 2000, use of the transmission/distribution
network owned by the electric power companies was liberalised, and the retail market was partially liberalised to allow
Power Producers and Suppliers (PPSs) to sell electricity to extra-high voltage users requiring more than 2MW. The scope
of liberalisation was then expanded in April 2004 to users requiring more than 500kW, and subsequently in April 2005
to users requiring more than 50kW. Then, in April 2016, all users including individual households and retail stores were
included in the scope of this liberalisation so that everyone is free to choose an electric power company and price menu.
Electric power companies have responded to this trend of liberalisation by increasing their business efficiency while
lowering electricity prices and offering a variety of pricing plans.
With the three goals of ensuring supply stability, suppressing electricity rates to the maximum extent possible, and
expanding options for consumers and business opportunities for operators, the government is planning to advance the
reforms in three phases through three key measures of enhancing nationwide grid operation, full deregulation of the
electricity retail and generation sectors, and further ensuring neutrality in the transmission /distribution sector through
legal unbundling while thoroughly inspecting each phase to solve any issues and taking necessary measures based on
the results of the inspections.
As practitioners, the electric power companies would like to continue taking an active role in the deliberation so the
markets will be organised to secure stable supply of electricity, including market transactions that are already active, and
so that the electric power system reform will truly bring benefits to the customers.
Source: FEPC (Federation of Electric Power Companies of Japan), Electricity Review Japan 2017, p5
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Figure 7: The New Electricity Supply System (from April 2016)
Column
Overview of the Reforms of the Electric Power System
The following revisions to the Electricity Business Act related to
the reforms of the electric power system were passed into law in
November 2013.
The New Electricity Supply System (from April 2016) Phase 1: Enforced In April 2015
(1) Establishment of the “Organisation for Cross-regional
Nationwide Coordination of Transmission Operators”
(Enhancement of nationwide grid operation)
Surveillance
Competition In Phase 2: Enforced In April 2016
Wholesale Market (2) Full deregulation of entry into the electricity retail sector
Abolishment of wholesale regulations
Phase 3: Should be Implemented In April 2020
(3) Implementation of the legal unbundling of the
electricity transmission and distribution department (for
Japan Electric Power Exchange
ensuring further neutrality)
(4) Abolishment of the retail price regulations
Utilities Generation
Power Generation Power Generation

Power Generation Minister of Economy,
(ex-IPP, J-power etc.) (Newcorners)
Trade and Industry
Surveillance
Electricity Market
Transmission, Distribution & Grid Control Surveillance Commission
Coordinate
Company (ex-PPS)
Electric Retail
Electric Retail Organisation for
Marketing & Sales Companies Coordinate
Companies (ex-PPS) Cross-regional
(Newcomers)
Coordination of
Retail
Transmission Operators
Coordinate
(OCCTO)
Customers
Surveillance
Competition In
Retail Market
Data:
FEPC (Federation of Electric Power Companies of Japan), Electricity Review Japan 2017, p5
http://www.fepc.or.jp/english/energy_electricity/fair_competition/
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Restructuring of Vertically-Integrated Electric Utilities
Ahead of legal separation of the electricity transmission and distribution sector scheduled for 2020, the 10 vertically-
integrated general electric utilities have been driven by the need to change their organisational structures.
In particular, Tokyo EPCo transitioned to a holding company system by spinning off three businesses into independent
companies - fossil fuel procurement and thermal power generation, power transmission and distribution, and electricity
retail - on 1 April 2016. (In this report, Tokyo EPCo refers to TEPCO Group, consisting of TEPCO Holdings, Inc., TEPCO
Fuel & Power, Inc., TEPCO Power Grid, Inc., and TEPCO Energy Partner, Inc.)
Alliances for Competitiveness

Figure 8: Company Structure
In order to survive in an increasingly

competitive marketplace, electric
power suppliers have promoted
alliances with companies outside
their industry, such as mobile phone,
gas and internet service providers, as
well as sector peer companies.
Notably, Chubu EPCo and Tokyo EPCo

established a joint venture called JERA
Co., Inc. (JERA), covering the entire
energy supply chain from upstream
investments and fuel procurement
through power generation, in April
2015. In July 2016, JERA finalised its
succession of the two companies’
fuel businesses and overseas power
Data: Tokyo Electric Power Company Holdings, Incorporated website http://www.tepco.co.jp/en/
generation businesses.
index-e.html
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Power Generation Facilities
Installed Capacity
Table 4: Installed Capacity (as of 31 March 2018)
Unit: MW
Power Source
Hydro Thermal Nuclear Wind PV Geothermal Others Total
Hokkaido EPCo 1,648 4,065 2,070 0 1 25 0 7,809
Tohoku EPCo 2,445 12,353 3,274 0 5 189 0 18,266
General Electricity Utilities
Tokyo EPCo 9,872 41,155 12,612 18 30 3 0 63,690

Chubu EPCo 5,459 25,471 3,617 22 17 0 0 34,586
Hokuriku EPCo 1,928 4,400 1,746 0 4 0 0 8,078
Kansai EPCo 8,226 19,430 6,578 0 11 0 0 34,245
Chugoku EPCo 2,910 7,802 820 0 6 0 0 11,538
Shikoku EPCo 1,150 3,736 1,456 0 2 0 0 6,344
Kyushu EPCo 3,580 10,351 4,699 3 3 206 0 18,842
Okinawa EPCo 0 2,159 0 2 0 0 0 2,161
Subtotal 37,221 130,923 36,872 46 78 423 0 205,563
Wholesale Electricity
8,572 8,412 2,260 0 0 0 0 19,244
Utilities
Others 3,769 33,927 0 3,046 7,240 43 53 48,078
Total 49,562 173,262 39,132 3,092 7,318 466 53 272,885
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Generated Output
Table 5: Generated Output (FY2016: April 2016 – March 2017)
Unit: MWh
Power Source
Hydro Thermal Nuclear Wind PV Geothermal Total
Hokkaido
3,793,796 19,296,666 0 0 1,120 104,306 23,195,888
EPCo
General Electric Utilities
Tohoku EPCo 6,884,559 54,128,298 0 0 5,438 782,567 61,800,862

Tokyo EPCo 10,034,365 190,276,388 0 24,464 32,880 10,251 200,378,348
Chubu EPCo 8,572,948 110,216,765 0 24,008 18,679 0 118,832,400
Hokuriku EPCo 5,745,850 22,010,098 0 -159 4,369 0 27,760,158
Kansai EPCo 13,361,512 81,605,503 0 0 10,872 0 94,977,887
Chugoku EPCo 3,833,162 33,942,548 0 0 7,785 0 37,783,495
Shikoku EPCo 2,222,188 13,274,261 4,716,593 0 2,486 0 20,215,528
Kyushu EPCo 4,787,214 45,614,893 12,583,644 1,887 3,553 1,127,631 64,118,822
Okinawa EPCo 0 6,490,117 0 1,948 0 0 6,492,065
Subtotal 59,235,594 576,855,537 17,300,237 52,148 87,182 2,024,755 655,555,453
Wholesale Electricity
9,304,489 51,651,023 0 0 0 15,326 60,970,838
Utilities
Others 13,329,951 166,228,275 0 4,947,678 6,434,325 118,332 191,058,561
Total 81,870,034 794,734,835 17,300,237 4,999,826 6,521,507 2,158,413 904,584,852
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Major Power Plants
Table 6: Principal Thermal Power Plants
As of March 31, 2016

Installed Capacity
Name of Plant Company (MW) Fuel
1 Tomatou-atsuma Hokkaido EPCo 1,650 Coal
2 Higashi Niigata Tohoku EPCo 5,149 LNG, heavy oil, crude oil, city gas
3 Haramachi 2,000 Coal, biomass
4 Akita 1,633 Heavy, crude, light oil
5 Kashima Tokyo EPCo 5,660 Heavy oil, crude oil, city gas
6 Futtsu 5,040 LNG
7 Chiba 4,380 LNG
8 Hirono 4,400 Heavy, crude oil, coal
9 Anegasaki 3,600 LNG, heavy, crude oil, LPG
10 Sodegaura 3,600 LNG
11 Yokohama 3,379 LNG, heavy, crude oil
12 Yokosuka 2,274 Heavy, crude oil, city gas, light oil
13 Kawasaki 2,710 LNG
14 Higashi Ogishima 2,000 LNG
15 Hitachinaka 2,000 Coal
16 Goi 1,886 LNG
17 Kawagoe Chubu EPCo 4,802 LNG
18 Hekinan 4,100 Coal
19 Chita 3,966 Heavy, crude oil, LNG
20 Shin Nagoya 3,058 LNG
21 Atsumi 1,900 Heavy, crude oil
22 Chita Daini 1,708 LNG
23 Joetsu 2,361 LNG
24 Toyama Shinko Hokuriku EPCo 1,500 Heavy, crude oil, coal
25 Kainan Kansai EPCo 2,100 Heavy, crude oil
26 Sakaiko 2,000 LNG
27 Gobo 1,800 Heavy, crude oil
28 Nanko 1,800 LNG
29 Maizuru 1,800 Coal, biomass
30 Himeji No.2 4,086 LNG
31 Himeji No.1 1,507.4 LNG
32 Shin Oita Kyushu EPCo 2,295 LNG
33 Shin Kokura 1,800 LNG
34 Tachibanawan J-Power 2,100 Coal
35 Matsuura 2,000 Coal, biomass
36 Shinchi Soma JP 2,000 Coal
37 Nakoso Joban JP 1,700 Heavy oil, coal, biomass
Data: JEPIC (Japan Electric Power Information Centre), The Electric Power Industry in Japan 2018, p57
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Table 7: Nuclear Power Plant

Unit Installed Capacity Type of Year
Name of Plant Number Company (MW) Reactor Commissioned
Tomari 1 579 PWR 1989
1 2 Hokkaido EPCo 579 PWR 1991
3 912 PWR 2009
2 Higashi-Dori 1 1,100 BWR 2005
Onagawa 1 524 BWR 1984
Tohoku EPCo
3 2 825 BWR 1995
3 825 BWR 2002
Fukushima Daini 1 1,100 BWR 1982
2 1,100 BWR 1984
4
3 1,100 BWR 1985
4 1,100 BWR 1987
Kashiwazaki Kariwa 1 1,100 BWR 1985
2 Tokyo EPCO 1,100 BWR 1990
3 1,100 BWR 1993
5 4 1,100 BWR 1994
5 1,100 BWR 1990
6 1,356 ABWR 1996
7 1,356 ABWR 1997
Hamaoka 3 1,100 BWR 1987
6 4 Chubu EPCo 1,137 BWR 1993
5 1,380 ABWR 2005
Shika 1 540 BWR 1993
7 Hokuriku EPCo
2 1,206 ABWR 2006
8 Mihama 3 826 PWR 1976
Takahama 1 826 PWR 1974
2 826 PWR 1975
9
3 Kansai EPCo 870 PWR 1985
4 870 PWR 1985
Ohi 3 1,180 PWR 1991
10
4 1,180 PWR 1993
11 Shimane 2 Chugoku EPCo 820 BWR 1989
Ikata 2* 566 PWR 1982
12 Shikoku EPCo
3 890 PWR 1994
Genkai 2 559 PWR 1981
13 3 1,180 PWR 1994
4 Kyushu EPCo 1,180 PWR 1997
Sendai 1 890 PWR 1984
14
2 890 PWR 1985
15 Tokai Daini - Japan Atomic 1,100 BWR 1978
16 Tsuruga 2 Power Co. 1,160 PWR 1987
Total 40 units Total 39,132MW
Notes:
PWR = Pressurised Water Reactor, BWR = Boiling Water Reactor, ABWR = Advanced BWR
*Closed in May 2018
Data: JEPIC (Japan Electric Power Information Centre), The Electric Power Industry in Japan 2018, p59, METI HP
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Table 8: Principal Hydroelectric Power Plants (400MW or above)

Name of Plant Company Installed Capacity (MW) Type
1 Kyogoku Hokkaido EPCo 400 Pumped Storage
2 Numazawa No.2 Tohoku EPCo 460 Pumped Storage
3 Shin Takasegawa Tokyo EPCo 1,280 Pumped Storage
4 Tanbara 1,200 Pumped Storage
5 Imaichi 1,050 Pumped Storage
6 Kannagawa 940 Pumped Storage
7 Shiobara 900 Pumped Storage
8 Kazunogawa 1,200 Pumped Storage
9 Azumi 623 Pumped Storage
10 Okumino Chubu EPCo 1,500 Pumped Storage
11 Okuyahagi No.2 780 Pumped Storage
12 Okutataragi Kansai EPCo 1,932 Pumped Storage
13 Okawachi 1,280 Pumped Storage
14 Okuyoshino 1,206 Pumped Storage
15 Kisenyama 466 Pumped Storage
16 Matanogawa Chugoku EPCo 1,200 Pumped Storage
17 Nabara 620 Pumped Storage
18 Hongawa Shikoku EPCo 615 Pumped Storage
19 Omarugawa Kyushu EPCo 1,200 Pumped Storage
20 Tenzan 600 Pumped Storage
21 Ohira 500 Pumped Storage
22 Shin Toyone J-Power 1,125 Pumped Storage
23 Shimogo 1,000 Pumped Storage
24 Okukiyotsu 1,000 Pumped Storage
25 Numappara 675 Pumped Storage
26 Okukiyotsu No.2 600 Pumped Storage
27 Okutadami 560 Conventional
28 Tagokura 400 Conventional
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Power Generating Facilities for Electric Utilities
Nuclear Power Thermal Power
Nuclear power is currently used as a base-load source. As Regarding thermal power, the industry is pursuing efforts
of end September 2017, the failure to add any new nuclear to diversify fuel sources, including coal and LNG, from an
power plants to the grid since fiscal 2010, combined with energy security perspective. As of the end of March 2016,
the decommissioning of six reactors at the Fukushima the total installed capacity of thermal power plants except
Daiichi Nuclear Power Plant (Units 1 to 4 in April 2012 self-generated power was 143,040MW.
and Units 5 and 6 in January 2014) and six old reactors at
other plants in 2015 and 2016 had reduced the number Coal-fired thermal power plants are undergoing various
of installed reactors to 42 units. Japan’s total generating improvements to assure that they can fulfill their role as
capacity of 41,480MW ranks third in the world after base-load and medium-load electric power sources,
the United States and France. The capacity factor was including the installation of large-capacity units, ultra-
maintained at the 80% level through fiscal 2001, but it had supercritical pressure boilers and variable pressure
lingered below 80% since fiscal 2002 due to increases in operation equipment to enhance their efficiency and
the time requirements for periodic inspections at some load-following capabilities. This has positioned coal-fired
nuclear power plants. It subsequently fell further following thermal power plants as one of the most economically
the Fukushima Accident of March 2011, after which efficient power sources. Technologies designed to
units whose operation had been suspended for periodic further boost the efficiency of coal-fired plants, including
inspections were unable to restart*. As a consequence, the Advanced Ultra-Supercritical (A-USC) facilities, Integrated
capacity factor progressively declined and eventually sank Coal Gasification Combined Cycle (IGCC) facilities,
to zero in fiscal 2014. Following final inspection by the Integrated Coal Gasification Fuel Cell Combined Cycle
Nuclear Regulation Authority, however, Unit 1 at the Sendai (IGFC) facilities, and Carbon Capture and Storage (CCS)
Nuclear Power Plant reentered commercial operation in facilities, are currently under development and advancing
September 2015. Unit 2 at the same plant, Units 3 and 4 at toward practical application.
the Genkai Nuclear Power Plant, Unit 3 at the Ikata Nuclear
Power Plant, Units 3 and 4 at the Takahama Nuclear Power In the area of LNG-fired power generation, which
Plant, and Units 3 and 4 at the Ohi Nuclear Power Plant produces lower SOx, NOx and CO2 emissions than oil-
have also come back online, and nuclear power output is or coal-fired power generation, large-scale power
expected to continue to recover in the months and years generation plants employing high-efficiency combined-
ahead. cycle power generation systems are currently under
construction. New plants recently added to the grid
*Units 3 and 4 at Kansai EPCo’s Ohi Nuclear Power Plant exhibit significant improvements in performance, with
were given a special exemption to continue operating gas turbine inlet temperatures of 1,600°C and thermal
from July 2012 through to their periodic inspection in efficiency of approximately 61% (LHV). The superior load-
September 2013 in order to ease tight supply. following capability and highly economical operation
achieved by LNG-fired plants make them an excellent
Source: JEPIC (Japan Electric Power Information Centre), The Electric source of energy. By introducing and making appropriate
Power Industry in Japan 2018, p33, METI HP use of high-efficiency thermal power generation, the
gross thermal efficiency of all thermal power plants in
Japan was maintained at a world-class level of 42.9%
(on an HHV basis) in 2015.
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Hydro Power
Hydro power is used as both a base power source and a power source for responding to peak-load conditions. As of end
March 2016, the total installed capacity of hydropower plants except in-house facilities in Japan was 45,790MW, of which
pumped storage power facilities accounted for about 60%. All except one of the 24 hydropower plants with maximum
capacities of 500MW or above were pumped storage plants.
Renewable Energy
Renewables are seen in increasing adoption as environmentally friendly energy sources. Although the Renewables
Portfolio Standard (RPS) Act implemented in fiscal 2003 mandated the use of certain amounts of renewable energy,
development was initially lacklustre and in fiscal 2010 renewables (excluding hydropower) still accounted for only about
1.2% of generated output. A new Feed-in Tariff (FIT) scheme for renewable energy was therefore launched in July 2012.
This prompted a surge in the adoption of renewables (especially solar power), and purchases of renewable energy
consequently reached approximately 1.84 trillion yen in fiscal 2015. As this figure is projected to continue to rise, the
mechanism used to determine purchase prices for renewables was revised in February 2016. As of the end of March
2017, a total of 38,470MW of FIT certified solar power generating capacity (including systems operated by non-utility
generators) had been installed in Japan, and wind power plants with a total generating capacity of 3,310MW were in
operation.
Future Plans
The ’Aggregation of Electricity Supply Plans for FY2017‘ that was published in March 2017 by the Organisation for
Cross-regional Coordination of Transmission Operators, Japan (OCCTO) calls for the development of 24,870MW
(excluding nuclear power) of new power sources from fiscal 2017 to 2026. A breakdown of this volume shows that
294MW is to be provided by hydropower generation and 20,090MW by thermal power generation.
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Table 9: Major Power Development Projects (as of March 2017, output of 400MW or above)
Output Class Start of

Utility Type Plant Name (MW) (scheduled) Operation
Feb. 2019, Dec. 2023,
Hokkaido EPCo LNG Ishikariwan-Shinko 1,708 1,600°C class
Dec. 2028
Coal Noshiro Unit 3 600 USC Jun. 2020
Tohoku EPCo
LNG Joetsu Unit 1 572 - Jun. 2023
LNG Goi Unit 1 series 2,130 - From fiscal 2025 onward
Kannagawa Units 3 Pumped
Hydro 1,880 From fiscal 2025 onward
Tokyo EPCo to 6 Storage
Pumped
Hydro Kazunogawa Unit 3 400 From fiscal 2025 onward
Storage
Nishi-Nagoya Unit 7
LNG 2,376 1,600°C class Sep. 2017, Mar. 2018
Chubu EPCo series
Coal Taketoyo Unit 5 1,070 UCS Mar. 2022
Toyama Shinko LNG
Hokuriku EPCo LNG 424.7 1,500°C class Nov. 2018
Unit 1
Coal Ako (fuel transition) 1,200 SC 2020
Kansai EPCo
LNG Wakayama 3,700 - From fiscal 2025 onward
Chugoku EPCo Coal Misumi Unit 2 1,000 USC Nov. 2022
Shikoku EPCo Coal Saijo Unit 1 (replaced) 500(+344) USC 2023
Kyushu EPCo Coal Matsuura Unit 2 1,000 USC Jun. 2020
J-Power Coal Takehara New Unit 1 600 USC Jun. 2020
Source: Supply plans published by utilities (excluding nuclear energy, which remains undecided)
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Electricity producers are also actively adopting mega solar power generation and Power Network Facilities
building large-scale commercial solar power plants. In the area of wind power
generation, they are investigating locations with appropriate wind conditions and Transmission Facilities
promoting facility installation.
Japan’s trunk transmission systems
In addition, the Long-Term Energy Supply and Demand Outlook released by METI comprise of 500kV, 275kV, 220kV, 187kV,
in July 2015 calls for renewable energy sources to account for 13%-14% of Japan’s 154kV and 132kV transmission lines. The
power generation in 2030. maximum transmission voltage is 500kV
for all 10 general electric utilities except
However, solar and wind power generation also present numerous challenges, Hokkaido EPCo (275kV) and Okinawa
including instability of power generation due to variable natural conditions, high EPCo (132kV).
costs, low utilisation efficiency, and its impact on the supply and demand balance.
As of end March 2016, these transmission
Discussions are currently under way at the national level, aimed at accelerating the
lines had a total circuit length of
introduction of electric power generation using renewable energy sources. approximately 179,000km. Japan’s
three major metropolitan areas, Tokyo,
Figure 9: Electric Power Generation Volume Composition by Osaka and Nagoya, are served by trunk
Power Source transmission systems comprising of
dual 500kV outer ring transmission lines
(TWh) Renewable energy with additional trunk lines connected
(excluding hydro) to the rings in a radial pattern. In Tokyo
1200 Metropolitan Region, Tokyo EPCo has
constructed transmission lines designed
to handle up to 1,000kV as a third outer
1000 ring, which is currently operating at
Hydro 13-15%
500kV. Installation of extra-high voltage
underground transmission cables (500kV,
9%
275kV and 220kV) is also underway to
Power Generation
800 3%
Oil, etc enhance the reliability of the power
supply to the central districts of large
cities. As of end March 2016, the circuit
LNG 27%
600 length of underground transmission
cables with normal voltages of 187kV
or higher was approximately 1,929km,
400
while underground transmission cables
Coal accounted for 15.1% of the total circuit
26%
length of the transmission lines in the
network.
200
Nuclear 20-22% DC transmission lines are used for the

interconnections between Hokkaido
0 and Honshu, and between Kansai and
(FY) ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘30 Shikoku.
(Planned)
Data: JEPIC (Japan Electric Power Information Centre), The Electric Power Industry in Japan 2018, p35 Source: JEPIC (Japan Electric Power
Source: FEPC Information Centre), The Electric Power
Industry in Japan 2018, p36
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Table 10: Total Circuit Length of Transmission and Distribution Lines and Transformation Facility Capacities
1975 1985 1995 2000 2005 2010 2011 2012 2013 2014 2015
Circuit length of
transmission lines 69,361 78,660 88,648 94,762 95,176 104,618 105,038 105,128 105,327 105,804 106,167
(km)* Under 110kV
110 kV –
28,913 35,106 36,952 36,669 35,962 35,696 35,635 35,561 35,566 35,505 35,588
Under 220kV
220kV or above 14,167 23,486 29,107 33,232 35,209 35,791 36,690 36,701 36,658 36,848 36,949
Total 112,441 137,252 154,707 164,663 166,347 176,105 177,363 177,390 177,551 178,157 178,704
Substation output
234,748 447,866 657,536 748,258 778,740 810,924 813,782 821,087 826,015 830,116 833,112
capacity (MVA)*
Total Number of
3,466 5,152 5,814 6,394 6,570 6,686 6,697 6,698 6,701 6,705 6,718
substation
Circuit length of
distribution lines 2,623,787 3,179,970 3,661,963 3,827,612 3,918,743 3,966,677 3,967,914 3,975,171 3,985,241 3,995,650 4,005,974
(km)* Overhead
Underground 14,358 25,348 50,371 59,164 65,287 66,896 67,711 68,548 69,358 70,025 70,733
Total 2,638,145 3,205,318 3,712,334 3,886,776 3,984,030 4,033,573 4,035,625 4,043,719 4,054,599 4,065,675 4,076,707
*Figures are as of fiscal year-end.
Note: Figures for 1985 and later include Okinawa EPCo.
Source: FEPC
Transformation Facilities
Widespread introduction of remote control systems has reduced the number of operators required for substations, while
the adoption of gas-insulated switchgears has facilitated the downsizing of newly constructed substations. In November
2000, Tokyo EPCo initiated operation of the Shin-Toyosu Substation, the world’s first 500kV underground substation.
As of end March 2016, the total capacity of the transformers installed in the 6,718 substations operated by 10 general
electric utilities was 833,110MVA.
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Figure 10: Buzen Storage Battery Substation (Kyushu EPCo)
252 NaS battery containers

(200kW) have been installed with
a total output of 50MW, and a
total storage capacity of 300MWh.
They went into operation in
March 2016.
Distribution Facilities Efforts to improve supply reliability and business

operating efficiency in the distribution sector include the
In principle, electricity is supplied to low-voltage customers widespread use of distribution automation systems for
through 100/200V single-phase three-wire or 200V three- remote supervision and automatic control of distribution
phase three-wire systems. Low-voltage distribution lines equipment. In response to the recent growth of distributed
are thus generally installed in three-phase four-wire open- generation, switches with sensors and static automatic
delta connection distribution systems used to supply both voltage regulators (such as STATCOMs) are increasingly
single-phase and three-phase power. installed on distribution lines in order to maintain supply
reliability and power quality.
The standard for high-voltage distribution system is the
6kV multi-divided, multi-connected system. Either 22kV Smart meters are also being installed in order to (1) assist
or 33kV spot network systems are installed in densely electric power companies’ meter reading work, (2) track
populated areas to prevent equipment overcrowding and individual customers’ electricity usage so as to facilitate
improve power supply reliability. As of end March 2016, the power-saving measures, and (3) provide means of limiting
total length of distribution lines in Japan was approximately power consumption when the supply and demand balance
4.076 million km, with underground lines accounting for is tight. Smart meters had been installed in about 30% of
1.7% (refer to the above table of Total Circuit Length of households as of November 2016, and all customers
Transmission and Distribution Lines and Transformation should have smart meters by the end of the 2020s.
Facility Capacities).
Source: JEPIC (Japan Electric Power Information Centre), The Electric
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4 Measures by the Electric Utility Industry to Suppress CO2 Emissions
Efforts for environmental conservation including In July 2015, 35 electricity utility companies jointly
countermeasures against global warming, creating constructed a voluntary framework for a low carbon society
a recycling-based society and managing chemical and prepared an ’Action Plan for a Low-Carbon Society‘
substances, are key challenges for the electric utility that laid out specific efforts to be made. In February 2016,
industry. Regarding global warming measures, the ’Paris the ‘Electric Power Council for a Low-Carbon Society
Agreement‘ was adopted in December 2015 at the 21st (ELCS)’ was founded to facilitate efforts toward this goal
Session of the Conference of the Parties to the United (a membership of 42 utility companies as of April 2017).
Nations Framework Convention on Climate Change
(COP21), and entered into force in November 2016, According to the Action Plan, an end-user CO2 emission
building a framework in which all countries and regions of factor of about 0.37kg- CO2/kWh will be targeted in light
the world participate for global warming measures. In July of the government’s 2030 energy supply and demand
2015, the Japanese government announced its ’Intended outlook. Moreover, as the maximum reduction potential,
Nationally Determined Contributions (INDC)’, with the a reduction of about 11 million t- CO2 will be expected by
objective of reducing greenhouse gas emissions in 2030 using economically achievable Best Available Technologies
by 26% from 2013 levels. In May 2016, in accordance with (BATs) in light of the construction of new thermal power
the INDC, the plan for Global Warming Countermeasures plants, etc.
was adopted. Emissions of carbon dioxide (CO2), a major
cause of global warming, are closely related to energy The member companies will make efforts towards a low
utilisation in economic activities and daily life, and so the carbon society by utilising nuclear power generation
reduction of CO2 emissions is a major challenge for the premised on ensuring safety or renewable energy, raising
industry. the efficiency of thermal power plants and optimising their
appropriate maintenance and control, and promoting
The electric power companies are trying to reduce CO2 energy-conservation or CO2 reduction services on both
emissions mainly through attaining the optimal energy the supply and demand sides.
mix, seeking to simultaneously achieve energy security,
economic efficiency and environmental conservation, Source: FEPC (Federation of Electric Power Companies of Japan),
Electricity Review Japan 2017, p10
under the major premises of Safety (S+3Es).
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Figure 11: Overview of the Action Plan for a Low Carbon Society of ELCS
Using nuclear power with safety as a major premise

Expanding the use of
non-fossil energy sources
Using renewable energies
Efforts in
domestic Improving the efficiency
Improving the efficiency of thermal power
business of power facilities
operations
Provide energy conservation
Provide energy conservation and CO2 emission reduction
and CO2 emission
services in electricity retail field
reduction services
Promoting high-efficiency electrical devices to enhance the

efficient use of electricity
Energy saving PR activities and providing information on energy-saving and
Strengthen
CO2 reduction
cooperation
with other Introducing smart meters for the efficient use of electricity
interested
groups Efforts by electric power
Efforts in office-use energy saving and the use of company-
industry as users
owned vehicle
Contributions Assisting developing countries to reduce carbon through

at the international partnership (GESP) activities
International efforts
international
level Low carbonisation on a global scale through development and
introduction of electric technology
R&D for use of nuclear power

Development
of innovative Research and development Thermal power technology to reduce the environmental load
technologies
Countermeasures for large amount introduction of renewable
energy
Development of technologies on the efficient use of energy
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Figure 12: CO2 Emissions Intensity over the Entire Lifecycle by Source
Fuel Combustion
(g-CO2/kWh) Facilities/Operations
1,000
943
800
738
600 599
864 474
400
695
476
376
200
123 98
79 21(PWR)
43 38 25 19(BWR) 13 11
0
Coal Oil LNG LNG Solar Wind Nuclear Geothermal Hydro
combined
Note:
(1) Based on total CO2 emissions from all energy consumed in energy extraction, transportation, refining, plant operation and maintenance, etc. in
addition to burning of the fuel.
(2) Data for nuclear power: 1) includes spent fuel reprocessing in Japan (under development), MOX fuel use in thermal reactors (assuming recycling
once) and disposal of high level radioactive waste, and 2) is based on the capacity-weighted average of CO2 emission intensities of existing BWR and
PWR plants in Japan, which are 19g-CO2/kWh and 21g-CO2/kWh respectively.
Source: Report of the Central Research Institute of Electric Power Industry, etc.
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Figure 13: Historical Trends in CO2 Emissions from Power Generation (excluding self-generators)
CO2 Emissions
CO2 Emissions Volume
Factor (million metric
Electricity Consumption (TWh)
(kg-CO2/kWh) tonnes-CO2)
Nuclear Power Generation (TWh)
1,000 0.6 1,000

831.4
900 900
CO2 Emissions Factor 0.6
800 0.534 800
700 0.5 700

0.530*
600 600
0.4
444
500 500
Electricity Consumption 0.3

400 400
441*
CO2 Emissions Volume
300 0.2 300
200 200
0.1
100 Nuclear Power Generation 100
67
0 0.0 0
1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 (FY)
Note:
Data in 1970 and 2013 is based on ten companies.
Data in 2014 and 2015 is based on ELCS members.
The numerical value of “0.530*” and “441*” reflected Kyoto Mechanisum credit.
Source: FEPC
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5 Renewable Energy
Introduction Targets and Prospects
Under the current Basic Energy Plan formulated in 2014, adopting renewable energies to the greatest extent
it was decided that the deployment of renewable energy possible in accordance with their respective individual
sources would be accelerated as rapidly as possible for a characteristics, while balancing this with containing the
three-year period beginning 2013, and would continue to burden imposed by this on customers. The plan called for
be promoted actively thereafter. using geothermal, hydro power, and biomass generation
as substitutes for nuclear power, and adopting solar and
The Long-Term Energy Supply and Demand Outlook wind power generation as substitutes for thermal power.
formulated in July 2015 set a target for the adoption
of renewable energy to be achieved by fiscal 2030 of Source: JEPIC (Japan Electric Power Information Centre), The Electric
22% - 24% of power generation, based on a policy of Power Industry in Japan 2018, p16
Legislation for Usage Expansion
The introduction of renewable energy sources was power has been reduced from the previous year to reflect
promoted under both the Renewables Portfolio Standard a fall in solar power facility costs.
(RPS) Act and the surplus solar power purchasing system.
Renewable energy sources other than hydro power Electric utilities are obligated to purchase all the electricity
accounted for only 1.2% of the total electricity generated generated by renewable energy sources at a fixed price for
in fiscal 2010, however, their development remained far a period specified by the government*. The electric utilities
from sufficient. The government responded by enacting are permitted to pass on their costs for the purchase
the Act on Special Measures Concerning Procurement of of electricity generated by renewable energy sources
Electricity from Renewable Energy Sources by Electricity to customers in the form of a surcharge calculated in
Utilities in August 2011 aimed at promoting the extensive proportion to the customers’ usage volume. The surcharge
deployment of renewable energy sources by requiring the for fiscal 2017 is 2.64 yen per kWh (2.14 trillion yen for
electric utilities to purchase all the electricity generated Japan as a whole) and 675 yen per month for the standard
by renewable energy producers. This Act led to the model household. Under this system electric utilities
implementation of the FIT scheme for renewable energy collect the surcharge from customers and transfer the
on 1 July 2012. This scheme has accelerated capital funds to a cost-bearing adjustment organisation called the
investment in renewable energy, with installed capacity Green Investment Promotion Organisation, which refunds
since FIT’s launch growing 163% to approximately their purchase costs to them in due course.
54,260MW by the end of March 2017.
On the other hand, the scheme contains a provision that
The electricity supply sources, purchase prices and reduces the surcharge for customers who use extremely
purchase periods covered by the FIT scheme for each high volumes of electricity and satisfy certain conditions.
fiscal year are to be determined by the minister of METI.
The purchase prices and periods for fiscal 2017 are as *Electric utilities cannot purchase renewable energy generating capacity
shown in the table below. The procurement price for solar that they themselves have installed.
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Figure 14: Purchase Price, Duration and State of Implementation of the FIT Scheme
Pre-tax
Duration Approved Status (MW)
Price
Procurement Type New Transferred
(Yen/kWh) (years) approved approved
amount*1 amount*2
10kW – 2,000kW 21 20
Output controller
Less than 10kW 28
not required
(purchase of excess
electricity) Output controller
30 84,540
Solar required*3 (4,960)
10 (33,500)
Less than 10kW Output controller
25
(dual generation/ not required
purchase of excess Output controller
electricity) 27
required*3
Wind (onshore) 20kW or above 21
Wind (onshore wind
20kW or above 18 6,970
replacement) 20 (2,520)
(790)
Wind (onshore) Less than 20kW 55
Offshore wind power 36
15,000kW or above 26
Geothermal
Less than 15,000kW 40
Onshore 15,000kW or above 20
(replacement of all
equipment) Less than 15,000kW 30 90
15 (0)
(10)
Onshore 15,000kW or above 12
(replacement of
equipment except
underground Less than 15,000kW 19
equipment)
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Figure 14: Purchase Price, Duration and State of Implementation of the FIT Scheme (con’t)
Pre-tax
Duration Approved Status (MW)
Price
Procurement Type New Transferred
(Yen/kWh) (years) approved approved
amount*1 amount*2
5,000kW – 30,000kW 20
1,000kW – 5,000kW 27
Hydro
200kW – 1,000kW 29
Less than 200kW 34 1,120
20 (210)
5,000kW – 30,000kW 12 (240)
Hydro using existing 1,000kW – 5,000kW 15

conduits*4 200kW – 1,000kW 21
Less than 200kW 25
Methane fermentation gasification 39
Woody biomass 2,000kW or above 32
(thinnings, etc.) and
agricultural crop Less than 2,000kW 40
residue
12,420
Biomass Ordinary woody 2,000kW or above 21 20 (1,120)
(850)
biomass and
agricultural crop Less than 2,000kW 24
residue
Construction material waste 13
General waste 17
1. As of the end of March 2017, the upper figures indicate facility capacity levels newly qualified following the start of this scheme. Parenthesised
figures indicate the capacity levels of facilities that have commenced purchasing.
2. Figures in parentheses represent the facilities introduced prior to the introduction of the scheme.
3. In districts of Hokkaido, Tohaku, Hokuriku, Chugoku, Shikoku, Kyushu, and Okinawa EPCos, power plants for which connection contracts
were applied for on or after April 1, 2015, must be equipped with output controllers.
4. Upgrades to electrical facilities and penstocks utilising existing condults.
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Review of the FIT Scheme for Renewable Energy
The introduction of the FIT scheme led to a rapid nationwide surge in applications and approvals for grid connection
of renewable energy (especially solar) power generation facilities, and in September 2014 applications for renewable
energy grid connections reached the maximum connection capacity of some electricity utilities. Out of concern that this
situation could threaten power network supply reliability, a number of electricity utilities decided in September 2014 to
suspend accepting such applications. Following deliberations regarding this situation, partial revisions to the enforcement
regulations for the Act on Special Measures Concerning Renewable Energy were implemented in January 2015 to cater
for the transition from the output control 30-day rule to an hourly system, and to expand the range of renewable energy
power generation facilities subject to output control rules. Following the revisions, electricity utilities that had placed a
hold on new applications resumed responding to connection applications in February 2015.
Subsequently, new concerns arose about the growing backlog of electricity generation facilities that have remained
unfinished for extended periods despite receiving FIT accreditation. This, together with the fact that the renewable energy
purchasing costs had reached approximately 1.84 trillion yen in fiscal 2015 and were forecast to continue to grow, led
to a further review of the FIT scheme. As a result of this review, legislative amendments were passed in February 2016 to
further improve the FIT scheme. The main changes were as follows:
• In order to prevent an increase in unfinished electricity generation facilities, a new rule was added stipulating that
facilities that remain non-operational for extended periods will have their accreditation cancelled.
• In order to keep purchasing costs under control, the system for determining the purchase price for large-scale (2MW
and above) purchases of electricity generated by solar facilities was changed effective 1 April 2017, to one based on
bidding.
• The system for determining the purchasing price of electricity from wind, geothermal, biomass, and small and
medium-sized hydropower generation, the introduction of which takes a long time, was changed to a system in
which the prices for multiple-year periods are determined en bloc.
• Effective 1 April 2017, the purchasers of renewable energy under the FIT scheme were changed from retailers to
regional electricity network operators.
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Figure 15: Outline of the FIT Scheme
These engaged in the

power generation Sale of electricity
business using renewable produced from EPCos Electricity
energy sources renewable energy Electricity supply customers
sources
Solar power
Purchase of electricity at a
fixed price for a government Collection of surcharge
guarantee period together with electricity change
Small-and
medium- Payment for Submission of
scale hydro purchase cost collected surcharge
Wind power power
Green Investment Promotion organisation

(organisation to collect
and distribute the surcharge )
Geothermal
Power Biomass Decision on tariffs and durations, Decision of surcharge unit price
respecting the opinion of the per kWh (each fiscal year)
special committee
(each fiscal year)
Those who generate Minister of Economy

power at home Qualification of
Trade and industry
facilities (Government
confirms whether
the facility can
generate electricity
Opinion on tariffs and
stably and efficiently. duration
Qualification in
cancelled if the Special committee for
facility no longer determination of tariffs
satisfies those
requirements.) and durations
Government
Source: Website of the Agency for Natural Resources and Energy

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6 Electric Power Companies’ Commitment to Safety Measures at Nuclear Power Plants
The Great East Japan Earthquake on 11 March 2011 led to a nuclear accident at the Fukushima Daiichi Nuclear Power
Station, resulting in the release of radioactive materials into the environment.
Determined to avoid a repeat of this accident, the electric power companies have been taking both tangible and intangible
measures since immediately after the accident, starting with emergency safety measures including the installation of
additional emergency power source vehicles and fire engines, as well as upgrading procedure manuals and conducting
drills.
Even after implementing the emergency safety measures, the electric power companies are making further efforts to
improve safety, including installing air-cooled emergency power generators, filtered ventilation systems and earthquake-
isolated emergency response centres.
To enable these efforts to be constantly and objectively evaluated, the Japan Nuclear Safety Institute (JANSI), which
evaluates the safety improvement activities of electric power companies and gives them technical advice, and the Nuclear
Risk Research Centre (NRRC), which uses Probabilistic Risk Assessment (PRA) and proposes solutions based on R&D,
were established. The electric power companies take to heart the evaluations and recommendations and are striving to
achieve the highest safety level in the world.
In July 2013, the new regulatory requirements set forth by the Nuclear Regulation Authority (NRA) were put into effect. As
of July 2017, the electric power companies have applied for a review of compliance with the new regulatory requirements
for 26 units of their 16 power stations. Of these 26 units 12 have passed the review, and five of these 12 units have
restarted commercial operation.
Source: FEPC (Federation of Electric Power Companies of Japan), Electricity Review Japan 2017, p4
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Figure 16: Safety Measures at Nuclear Power
Column
Start of full operation of Mihama Nuclear Emergency
Assistance Centre In December 2016
• When a nuclear accident occurs, the centre swiftly

Installation within 5 years assembles an emergency dispatch team, transports
personnel and equipment to the operator to deal with
Natural disasters
Plane crash, etc the nuclear accident at high radiation dose.
• During normal times, the centre intensively deploys

and manages ration controlled robots, etc., and
implements operating training for nuclear operator
Volcano Tornado Wildfire personnel.
Duplicating external
power supplies
Specified safety facility
Emergency
response office Fire engine
pump vehicle
Reservoir
Power source
vehicle
Freshwater
source
Boring
Underground Water-tight doors Seawalls
structure Trench
probe survey
Tsunami
Earthquake Build seawalls as necessary,
anticipating the highest
Investigate fault lines and possible tsunamis
underground structure
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Figure 17: Kawasaki Thermal Power Station (TEPCo Fuel & Power, Inc.)
Groups 2 and 3 went into operation

in January and June 2016
respectively. Both groups employ
a 1,600°C-class combined cycle
electricity generation method
and boast close to the world’s
top power generation efficiency
(approximately 61%).
7 Electricity Rates
Regulated Electricity Rates
Up until the full liberalisation of entry into the retail Unlike ordinary commodities, the prices of which are
electricity market in April 2016, the general electric utilities normally determined by the balance of supply and demand
supplied electricity and accepted a legal obligation to between buyers and sellers, electricity had been supplied
supply regulated customers in accordance with provisions by regional monopolies prior to liberalisation. To prevent
drawn up for standard electricity usage (’general supply the general electric utilities from taking unfair advantage of
provisions’) and electricity usage contributing to load their monopoly and to ensure fair treatment of customers,
levelling (‘optional supply provisions’). electricity could only be supplied at the regulated rates
specified in these supply provisions.
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In the past, it was necessary for the general electric utilities cases, specified procedures must be followed, including
to obtain the Minister of Economy, Trade and Industry’s yardstick assessments (conducted to assess improvements
approval to change their general supply provisions. in a utility’s management efficiency relative to other
However, the revision of the Electricity Business Act in general electric utilities) and public hearings.
1999 empowered them to change their provisions when
doing so would benefit customers (as in the case of a rate Even following the full liberalisation of the retail market in
reduction) simply by filing a notification. These revisions April 2016, the regulated rates specified in utilities’ general
were introduced out of respect for the general electric supply provisions are to remain in place until at least March
utilities’ autonomy, and allowed them to make necessary 2020 as a transitional measure to protect consumers. The
changes to their general supply provisions more quickly government is to consider terminating this measure in
and flexibly. 2020, before the third revision to the Electricity Business
Act enters effect that year, further to confirmation of the
Even following the 1999 revision, however, the general state of market competition. Meanwhile, ’optional supply
electric utilities have still required the Minister’s approval provisions‘ have been assigned the role of determining the
for any changes that would raise electricity rates. In such deregulated rates described in a later section.
Figure 18: Higashi-Shimizu FCF (Chubu EPCo)

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Figure 19: Arrangements to Bridge the Transition from Regulated to Deregulated Rates
Post completion of transitional measures

From April 2005 From April 2016
(full deregulation of retail rates)
Customers supplied at
Customers with demand of
deregulated rates set by

PPSs and utilities other
PPSs and former general
than general electricity
50kW or greater
Customers electric utilities

utilities Customers
supplied under
supplied under
provisions for
provisions for
last-resort
last-resort
service by
service under
general electric
the new system
utilities Customers supplied at
former general electric
general electric utilities
utilities
Customers
Customers supplied at supplied under
Customers supplied under
deregulated rates set by Customers supplied at provisions for
optional supply provisions
PPSs and former general deregulated rates last-resort
by general electric utilities
electric utilities service under
new system
demand under 50kW
Customers with
Measures as part
of the supply
Measures
Customers supplied at obligations
as part of
deregulated rates set by imposed on
general electric
former general electric former general
utilities supply
utilities electric utilities
obligations
as a transitional
Customer supplied under measure
supply provisions by
Customers supplied
under the provisions of
transitional measures
(regulated rates) by former
Last-resort service Last-resort service Last-resort service
Source: Agency for Natural Resources and Energy, METI documents. Includes amendments.
Data: JEPIC
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Contract Categories and Rate Structure
Electric contracts for regulated rates are classified according to electricity use (such as residential use or industrial
purposes), and electricity supplied based on the ’specific retail supply provisions‘ of the EPCo concerned. Electricity rates
are in principle organised into two parts comprising demand charges (which are proportional to contract demand) and
energy charges (proportional to energy consumption). These charges are calculated based on the unit electricity rates set
for each contract category. Under this two-part system, rates are structured as indicated in the table below.
For example, electricity demand for residential use is supplied at low voltage (single-phase 100/200V) to users with
contracted demand of less than 50kW. Since 1974, the year following the first oil crisis, a three-tiered rate system has
been introduced to charge for electricity used for residential use in order to promote energy conservation. Under this
system, monthly electricity consumption is divided into three tiers. The first tier covers consumption up to 120kWh,
considered the minimum necessary for daily life, and a relatively low rate unit price is applied. A unit rate corresponding
to the average supply cost is applied for electricity consumption in the second tier, and a slightly higher rate unit price is
applied for electricity consumption in the third tier. The threshold between the second tier and third tier is set at 300kWh
(280kWh for Hokkaido EPCo) reflecting typical electricity consumption by ordinary households. There is also a low-
voltage contract category (three-phase, 200V with contracted demand of less than 50kW), which applies primarily to
small factories.
Figure 20: Electricity Rates Structure in a Two-Part System
Electricity rate = basic rate + unit electricity rate x electricity consumption ± fuel
cost adjustment x electricity consumption + surcharges to encourage renewable
energy generation x electricity consumption
Source: Federation of Electric Power Companies of Japan website.

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Fuel-Cost Adjustment Scheme

A fuel-cost adjustment scheme was introduced in January 1996 for the purpose of clarifying the results of the electric utilities’
efforts to increase management efficiency, reflecting economic changes in rates as expediently as possible and stabilising the
electric utilities’ management environment by externalising the effects of fuel prices and exchange rates, which are beyond the
control of the electric utilities in their efforts to enhance efficiency.
The fuel-cost adjustment scheme was revised in March 2009, in response to changes in conditions in the operating environment
of the electric utility industry such as the sudden, steep fluctuations in fuel prices that occurred in 2008. Under the revised
fuel-cost adjustment scheme, the period (time gap) reflected in the rates has been shortened from three months to two months,
the shortest period to date, while reflecting average fuel prices for a three-month period in the rates charged each month. (For
example, the average fuel prices for the February to April period are reflected in the rates for July of the same year.) This enables
the electric utilities to reflect changes in fuel prices in the rates charged more quickly than before and to level rate fluctuations.
The ceiling on automatic adjustments remains unchanged.
Figure 21: Fuel-Cost Adjustment Time Line (Example)
Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sep. Oct.
2 months later Period of

Calculation period for fuel cost
average fuel coal adjustment
application

application

application
Source: Cited from the Federation of Electric Power Companies of Japan website
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Feed-in Tariff Scheme for Renewable Energy Unregulated Rates

Under the July 2012 ’Act on Special Measures Concerning
Procurement of Electricity from Renewable Energy Sources by High-voltage customers who were the target of deregulation
Electricity Utilities’, the general electric utilities are obligated to prior to April 2016 are already able to freely select their
purchase electricity generated by renewable energy sources suppliers (general electric utilities or PPSs). Their contracts
(solar, wind, hydroelectric, geothermal and biomass) at a fixed set unregulated rates that are determined by negotiation
price for a prescribed period. The general electric utilities can between customer and supplier based on their planned and
recover the cost via a surcharge calculated in proportion to actual usage (including scale, form and period of use and
the customers’ usage volume, which is imposed to encourage load characteristics). Customers that have been subject to
renewable energy generation. This surcharge makes up a part deregulation since April 2016 are now also able to select
of the electricity rate.* non-regulated rate plans from general electric utilities and
’unregulated rate‘ plans from PPSs, in addition to the regulated
*Under the new system, premises engaged in business that rates traditionally provided by general electric utilities.
have electricity consumption relative to turnover exceeding a
level prescribed by law and whose consumption over a year The former general electric utilities have started to provide
with respect to this business also exceeds a level prescribed new rate schedules better suited to users’ lifestyles in
by law, are exempt from paying a portion of the surcharge. accordance with their own business strategies. Some
While the amount of the surcharge has been raised annually to general electric utilities offer rate discount plans by bundling
encourage more renewable power generation, the reduction products in collaboration with other providers, such as gas
of the tariff as the use of renewables spreads has been and telecommunications companies. Many PPSs, on the
impacting the management of renewable power producers. other hand, offer rate schedules that give heavy users larger
discounts than the regulated rates offered by their EPCo
counterparts, or else provide discount plans that bundle
Power Industry in Japan 2018, p44 electricity with gas or telecommunications services.
Figure 22: Hatchoubaru Geothermal Power Station As of October 2017, the unregulated rate plans of both the
former general electric utilities and the PPSs had grown more
(Kyushu EPCo) diverse. Despite some regional variation, a diversity of unit rates
is now being offered by utilities of all descriptions, ranging
from rates on a par with those offered under the ordinary
residential plans traditionally offered by the former general
electric utilities to rates that reflect individual companies’
customer strategies.

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Figure 23: Rate Choices Following Full Liberalisation of Retail Market Entry
After full liberalisation of retail market entry

From April 2016
Various EPCos and rate schedules
Electricity rates of regional EPCos

(regulated rates)

(unregulated rates)
(regulated rates) Electricity rates of other EPCos or PPSs
(regulated rates)
Data: JEPIC (Japan Electric Power Information Centre), The Electric Power Industry in Various EPCos and rate schedule
Japan 2018, p44
Source: Agency for Natural Resources and Energy, METI documents. Includes amendments.
Wheeling Charges
Even in a deregulated environment, it is the transmission and distribution sector that builds and maintains transmission and
distribution networks to ensure stable supply. When PPSs retail electricity, and general electric utilities supply electricity
on a retail basis outside of their own service areas, they must use the network of the regional electricity network operator
that owns the supply facilities in the service area concerned. Wheeling charges are the fees imposed by transmission and
distribution operators on the users of their network.
The regional electricity network operator in the supply area concerned sets ’wheeling provisions’ stipulating the charges
and terms and conditions for wheeling, in order to ensure fair competition between all the users of its network. These
provisions are then submitted to the Minister of Economy, Trade and Industry. The wheeling charges are deliberated by
a review meeting of specialists on electricity pricing under the auspices of the Electricity and Gas Market Surveillance
Commission, taking into account both the appropriate recovery of requisite costs and fairness for network users. They
are then opened to public comment prior to final adoption.
Since April 2016, regional electricity network operators have been under obligation to provide electricity via a universal
service for customers on isolated islands, applying the same rate level as on the mainland, in order to protect customers.
The requisite costs for the provision of a universal service for the islands are passed on to all of the customers of the
regional electricity network operator in the service area, via wheeling charges. The electricity delivered to island customers
is primarily thermal in nature, so a ’Universal Island Service Price Adjustment System‘ has been introduced to reflect any
price variations affecting fuel costs for thermal generation in the wheeling charges.
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Figure 24: Position of Wheeling Charges in Electricity Rates
Wholesales
electricity charges
Power Generator
Power
generation Plant
Electricity
rates Wheeling charges
Transmission
Customers Retailers and distribution
Operators
Transmission
and distribution
network
Operating costs
Retailer’s internal
company costs
Source: Agency for Natural Resources and Energy, METI
Figure 25: Authorisation Process for Wheeling Charges
Announcememt of Collection of
EPCos Application wheeling charges
provisions
Acceptance
Minister of Economy, Approval
Trade and Industry Request for
review
Electricity and Gas Market

Surveillance Commission Review Opinions
Source: Agency for Natural Resources and Energy, METI website. Includes amendments.
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KOREA C EPS I 2018
99,720
km2
51.78
million
USD1,538
billion
Currency: Installed Capacity: Percentage of Population
South 116,657
Electrified:
100%
Korean MW
Won
(KRW)
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Often referred to as the ‘Land of the Morning Calm’, South Korea has a population of 51.78 million as of March 2018 and
a total land area of 99,720km2. Korea Electric Power Corporation (KEPCO) is the largest electric utility in South Korea and
is responsible for the generation, transmission and distribution of energy throughout the country.
South Korea is a global force in a number of significant industries, including automobiles, petrochemicals, electronics,
shipbuilding, textiles and steel and in 2018, GDP totalled USD1,538 billion, making South Korea the world’s 11th largest
economy.
2 Overview of Electric Power Industry
Characteristics of South Korea’s Industry Structure

Electric Power Industry
The six power Generation Companies (Gencos), Independent Power Producers
The electric power industry (IPPs) and Community Energy System (CES) providers generate electric power
requires facilities on stand-by at all and sell it to KEPCO on the Korea Power Exchange (KPX). KEPCO, in turn,
times because electricity is used sells electricity to general customers through its transmission and distribution
immediately after it is generated and network. Competition in the sales sector of the industry is increasing as large-
cannot be stored economically. The volume customers (more than 30,000kW) are allowed to buy electric power
industry also needs a grid to distribute directly from producers, and each CES provider is allowed to supply electric
and transmit electricity. South power in a specific district.
Korea depends heavily on overseas
markets for its energy (97%) and its Figure 1: Structure of the South Korean Electric Power Industry
geographically-isolated grid system
Government
makes it impossible for South Korea to Korean Electricity
import electricity from neighbouring Commission
countries. In addition, long-distance

Supervision CES
transmission is required because Providers
Trading
production is concentrated in the Trading
south while most of the power is used KEPCO

6 GENCOs Transmission
Customers
in the northern part of the country. IPPs Distribution
Trading
Sales
Furthermore, demand is very difficult Market
Operation
to control, and considerable time
KPX
Related Business
and investment is required to secure
supply capacity.
KEPCO
Group
Affiliates
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Total Capacity and Production by Fuel Type in 2017
Table 1: Total Capacity and Production
Classification Hydro Coal Oil LNG Nuclear Alternative Total

Installed Capacity 6,489 36,709 4,155 37,838 22,529 9,187 116,908
(Percentage) (5.5%) (31.4%) (3.5%) (32.4%) (19.3%) (7.9%) (100%)
Gross Generation 6,995 238,238 8,648 123,232 148,427 27,928 553,467

(Percentage) (1.3%) (43.0%) (1.6%) (22.3%) (26.8%) (5.0%) (100%)
(Unit: MW, GWh)
Market Regulation KEPCO
The Korean Electricity Regulatory KEPCO is a special corporation incorporated under the Korea Electric Power
Commission (KOREC) sets up legal Corporation Act and classified as a public corporation under the Act on the
and institutional arrangements to Operation of Public Organisation. KEPCO carries out diverse business projects
enable power producers to fairly according to the objectives of its foundation, for example, the development
compete in the power market, and of power sources, generation, transmission, substation, distribution and sales,
also establishes diverse mechanisms research and development, overseas business, investment or contribution, and
to properly monitor the market. the development and operation of real estate holdings.
The Commission also provides
supervision so that consumers do Figure 2: Work Flow in the Electric Power Industry
not incur losses due to unjust actions
by power producers, and guides the Power Transmission Substation Distribution Customer
restructuring of the power industry to Plants Line Line
provide better services to consumers.
The Commission is affiliated under the
Ministry of Trade, Industry and Energy
(MOTIE) and receives no funding.
The chair of the Commission is
recommended by the Trade, Industry
and Energy Minister and is appointed
GENCO’s KEPCO’s Business Areas (Transportation+Sales)
by the President.
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In 2016, KEPCO for the first time jumped into the Top 100 on the Forbes Global 2000 List, an annual ranking of the world’s
largest public companies. KEPCO climbed from 171 in 2015 to 97 and was named ’Best Company’ in the electric utility
sector. This was the first time an Asian power company achieved the spot. The Forbes 2000 ranking is based on revenue,
profits, assets and market value.
To mark a new era of advance, in November 2014 KEPCO moved its headquarters from Seoul to Naju, an innovative city
near Gwangju Metropolitan City in Jeollanam-do with a population of around 100,000. KEPCO’s head office was located
in Samseong-dong, Seoul for 28 years.
3 Power Generation
Current Status
South Korea’s electricity generation is dominated by a mix of coal and nuclear base load power. Liquefied natural gas
(LNG) and oil make up a smaller proportion of the generation mix, and are largely peak-load generators. The share of
renewable generation is small, but increasing. In 2017, South Korea’s installed capacity stood at 116,908MW and the total
amount of generation at 553,467GWh.
Figure 3: Installed Capacity and Gross Generation by Energy Source (including IPP facilities)
Hydro Coal Oil LNG Nuclear Alternative Total

Installed [MW] 6,485 32,035 4,129 32,624 23,116 7,477 105,866
capacity [%] 6.1 30.3 3.9 30.8 21.8 7.1 100%
Gross [GWh] 6,633 213,740 14,253 120,852 161,995 22,967 540,440

generation [%] 1.2 39.5 2.6 22.4 30.0 4.2 100%
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Outlook for Power Generation
The 7th Basic Plan of Long-Term Electricity Supply and

Figure 4: Ratio of Installed Capacity by Fuel Type
Demand (BPE) was published in 2015 by MOTIE and
provides generation/transmission facility construction
plans for the next 15 years until 2029. The 7th BPE
4% 1%
emphasises on demand side management, Smart Grid, and
24% 12%
the establishment of a stable power supply scheme. 25% 24%
According to the BPE, in 2029 the installed capacity will

2014 Year 2029 Year
increase from 93,216MW to 163,868MW, the proportion of
nuclear power facilities by 1.2% (about 22.2% in 2014), while
the proportion of bituminous coal will slightly decrease. In 30% 22%
particular, the generation proportion of renewable energy 30% 28%
facilities is forecast to increase to 20.1% in 2029 (6.7% in
2014) following the government’s decision to introduce the Coal Gas Nuclear Oil Others
Renewable Portfolio Standard (RPS) in 2012 - a regulation
that requires Gencos to generate renewable energy.
4 Transmission
In South Korea, KEPCO is the exclusive owner of the Transmission voltages in South Korea are 765kV and 345kV
transmission grid facilities. KEPCO has vast technical for trunk routes, and 154kV or 66kV for local networks.
expertise and operates transmission networks efficiently The 66kV lines are being replaced. KEPCO is also carrying
and reliably. KEPCO’s nationwide multi-loop transmission out the second stage of the 765kV power transmission
grid transports electric power with high reliability. project that will serve as the backbone of the transmission
Monitoring and controlling systems ensure the safety of in the 21st century. The power network of Jeju Island is
underground transmission lines in urban areas and KEPCO now connected to the mainland transmission system by
applies its extensive experience and technology to achieve submarine High-Voltage Direct Current (HVDC) cables.
maximum operational efficiency. Aging and outdated The Supervisory Control and Data Acquisition (SCADA)
facilities are replaced or upgraded at appropriate times. In systems have been used to remotely monitor and control
particular, KEPCO accelerates the construction of 765kV substation operations. In addition to equipment and facility
large-capacity transmission systems to transport more upgrading, more substations are being automated and
electricity with less power loss. built indoors to secure power supply reliability.
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Length of Transmission Lines by Voltage Level
(Unit: c-km)
Table 2: Length of Transmission Lines
Year
Voltage
Level 1980 2010 2011 2012 2013 2014 2015 2016 2017
765kV - 835 835 835 835 835 1,014 1,016 1,019
345kV 2,044 8,580 8,653 8,770 9,005 9,228 9,403 9,673 9,746
154kV 6,062 20,777 21,280 21,578 21,976 22,357 22,524 22,588 22,831
66kV or less 4,579 253 250 208 201 144 144 127 128
DC 180kV - 231 231 231 231 231 231 231 230
Total 12,685 30,676 31,249 31,622 32,248 32,795 33,198 33,635 33,955
Capacity of Substation by Voltage Level
(Unit: MVA)
Table 3: Substation Capacity
Year
Voltage
Level 1980 2010 2011 2012 2013 2014 2015 2016 2017
765kV - 27,115 29,116 29,116 31,116 29,116 31,116 38,116 38,116
345kV 6,334 108,096 111,597 115,598 117,098 122,379 123,379 128,380 131,880
154kV 9,789 120,684 123,226 126,143 130,931 133,387 129,065 138,606 141,539
66kV or less 2,985 423 434 390 375 361 331 240 334
Total 19,108 256,318 264,373 271,247 279,520 285,242 276,987 305,437 311,869
Substation 378 731 749 768 790 805 775 830 839
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5 Distribution and Retail Sales
Distribution
KEPCO owns and operates almost all of the domestic maintenance and develops new engineering measures to
distribution facilities in South Korea, using state-of-the- reduce power outages during distribution line works.
art technologies to ensure a reliable and stable power
distribution system. In 2017, the rate of power loss in KEPCO uses leading-edge equipment and facilities to
distribution was reduced to 3.57% while the observance prevent failures. KEPCO is enhancing network stability by
rate of power voltage requirements remained at 99.99%. expanding the use of highly reliable equipment and facilities,
These figures prove KEPCO’s outstanding capabilities in and using state-of-the-art detectors such as infrared
distribution network operations when compared with thermal imaging equipment, works to prevent failures by
advanced countries. After the installation of distribution identifying vulnerable spots on the distribution system in
automation system at all branches, KEPCO is now advance. The completion of the Distribution Automation
committed to the development of future-oriented system System (DAS) at all branch offices enables trouble spots to
operation technologies. Modern industrial society must be automatically pinpointed when a breakdown occurs on
be supported by an uninterrupted electrical power supply a distribution line, significantly reducing blackout time and
and to the end, KEPCO is engaged in constant preventative minimising the affected area.
Distribution Status
(Unit: c-km, 1000set ea)
Table 4: Distribution Status
Year 1980 2010 2011 2012 2013 2014 2015 2016 2017
Route Length 122,919 428,259 435,549 442,641 449,684 457,247 465,278 474,099 483,468
Supporter 2,029 8,343 8,464 8,583 8,698 8,832 8,961 9,122 9,287
Transformer 264 1,990 2,005 2,027 2,054 2,086 2,118 2,159 2,203
Retail Sales
KEPCO has 190 regional and local branch offices, each Demand for power in South Korea is steadily rising due to
with jurisdiction over a business area that is divided based its convenience, the lower relative price of electricity and
on the government’s demarcation of provincial districts. growth in the country’s gross domestic product (GDP). In
Each branch operates a mobile service fleet to serve 2017, South Korea’s electricity sales rose nearly 2.77% over
customers on-site. In addition, KEPCO operates 56 service the previous year.
centres that cover rural areas of relatively high population
densities.
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Total Power Consumption by Year
(Unit: GWh)
Table 5: Total Power
Sector 2013 2014 2015 2016 2017 Growth Rate

Households 63,970 62,675 63,794 66,173 66,517 0.5%
Public Service 154,037 150,299 154,228 160,891 164,557 2.3%
Industrial 256,841 264,618 265,633 269,975 276,672 2.5%
Total 474,849 477,592 483,655 497,039 507,746 2.2%
In the future, power demand is expected to increase in proportionate to the

Demand Growth Forecast
domestic/overseas market circumstances and the GDP growth rate. According
to the 6th Basic Plan of Long-Term Electricity Supply and Demand (BPE), the
annual rate of increase in electricity consumption for the next 15 years until 3.4%
2027 is predicted to average 3.4%.
2.5%
In South Korea, progressive tariff rates - which charge users with higher
electricity consumption more than users with lower electricity consumption
- are applied to residential customers while seasonal tariff rates are applied to
commercial, educational, and industrial customers classified by voltage during
the peak summer months of July and August. For commercial customers
who have a contracted demand of 1,000kW or more and industrial customers
with a contracted demand of 300kW or more, inexpensive rates are applied
during the night time when demand is lowest and higher rates are applied
during the daytime when demand increases. This enables the power demand 2012 2013-2027(F)
to decentralise and encourages the efficient use of power supply facilities.
Moreover, optional pricing by load factor is applied to high-voltage customers
among commercial, educational, and industrial customers.
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The Yearly Average Sales Price for Residential and Industrial Sectors
(KWR/kWh)
Table 6: The Yearly Average Sales Price
Sector 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Residential 110.82 114.33 114.31 114.97 114.45 119.85 119.99 123.69 127.02 125.14 123.69
Industrial 60.25 61.92 64.56 66.24 73.69 76.63 81.23 92.83 100.70 106.83 107.41
Total 74.46 76.43 77.85 78.76 83.59 86.12 89.32 99.10 106.33 111.28 111.57
6 Green House Gas Reduction Efforts
The government of South Korea has committed to reduce Korean electricity generation sector - to the extent that they
greenhouse gas (GHG) as follows: provide a larger subsidy equivalent to renewable generators.
• The Greenhouse Gas and Energy Target Management However, they will be offset to some extent by changes to
Scheme - a system of mandatory emission reduction existing measures. For example, the Feed-in Tariff is replaced
agreements covering about 500 companies (including by the RPS and the KCERs scheme is expected to be rolled
most electricity generators) that emit more than 20,000 into the proposed emissions trading scheme.
tCO2 per year. The scheme is expected to include a
carbon offset programme which attempts to reduce GHG emitted by KEPCO and the six Gencos can be mainly
carbon which has already been emitted. classified into two types: direct emissions, such as CO2
• Renewable Energy Portfolio Standards (RPS) - a from the use of fossil fuels during power generation and SF6
requirement for large fossil fuel electricity generators emissions from switches in the transportation process, and
(plants over 500MW) to source a proportion of their indirect emissions from T&D loss.
total electricity production from renewable sources -
starting at 2% in 2012. The RPS includes a renewable In 2007, KEPCO established a GHG Emission Data System
energy certificate trading scheme, which replaces the in accordance with international standards, and in October
former Feed-in Tariff based on the cost of generation 2008 the reliability of the system was verified through the
of each technology. GHG inventory on emission statistics control and emission
• Emissions Trading Scheme - proposed for volume (KEMCO GHG Certification Office).
implementation in 2015. The South Korean government
is considering the use of Korea Certified Emission For the first time as a public enterprise, KEPCO acquired a
Reductions (KCERs) in the emissions trading scheme carbon footprint certificate from the Ministry of Environment,
although details of the policy are unclear at this stage. showing the CO2 equivalent for GHG emissions from T&D
lines. Since February 2010, KEPCO has been operating an
The combined effect of these policies may increase the online GHG control system at Group level in a bid to collect
total abatement and total subsidy equivalent for the South and provide accurate GHG emission data.
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C EPS I 2018
KEPCO also promotes the CDM business at home and abroad as a way to proactively respond to the Convention on Climate
Change. For example, KEPCO’s wind power business in China has generated a carbon credit of 690,000 tonnes. In South
Korea, KEPCO acquired a carbon credit of 150,000 tonnes per annum through gas-recovery equipment to reduce SF6 used
for switch insulation.
7 KEPCO’s Overseas Business
As KEPCO strives to achieve its vision of becoming a ‘Global Top Green & Smart Energy Pioneer’ equipped with
technological competence, KEPCO endeavors to explore its growth engines in the overseas electricity markets. Future
growth overseas can be achieved in areas including thermoelectric power plants, nuclear power plants, renewable
energies, resources explorations, transmission systems, and smart grids. KEPCO’s 2020 target for its overseas business is
to attain USD26 billion, or 30% of its total sales target.
Nuclear Power Thermal and Renewable Power Generation
On 27 December 2009, for the first acquired wind power projects in Inner
time in its history, KEPCO entered into Mongolia, China with 975MW capacity
a USD18.6 billion nuclear power plant and an additional 246MW capacity in
project deal with Emirates Nuclear 2010. That proves to the world the
Energy Corporation (ENEC). Under competitiveness of KEPCO is in the
the project, four South Korean type of wind power market. Three overseas
1,400MW reactors will be built starting projects of about USD173 million in
with the first reactor on 1 May 2017 and sales in 2010 have contributed to
ending with the fourth reactor by 2020. KEPCO’s profitability and to its brand
KEPCO has been gearing up for the image as a global power builder.
In the area of thermoelectric power,
successful completion of the project
in 2010, KEPCO won Mexico’s Norte The expansion of the Neimenggu
since entering into the UAE nuclear deal.
II project, a 433MW Combined Cycle wind power project has secured a
In 2010, it launched the UAE nuclear
Power Plant (CCPP), awarded by USD8.7 million carbon credit per
project task force to seal contracts with
Mexico’s state-owned power utility, annum. Projects in the UAE and
private companies and subcontractors,
Commission Federal de Electrician Latin America involving other South
made UAE-customised designs,
embarked on making and purchasing (CFE)., This is the first project that Korean companies have created new
the major equipment, carried out KEPCO won in Central and South jobs related to the construction and
site-related activities such as the America. In the UAE market, which operation of power plants. In the
acquisition of permission, completion is probably the most competitive areas of thermoelectric power and
of the construction site survey and market in the world for private renewable energies, as of 2012, KEPCO
the building of construction offices power builders, KEPCO won the UAE operates six plants with capacity of
and supporting facilities, and applied Shuweihat S3 CCPP project. KEPCO 3,503MW and is constructing four
for construction permission from the has now established itself as a global plants with a capacity of 1,670MW
UAE Federal Authority For Nuclear private power leader. In the area of in China, the Philippines, and other
Regulation (FANR). On 14 March renewable energies. In 2009, KEPCO countries.
2011, KEPCO held a groundbreaking
ceremony at the site for UAE power
plants.
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KEPCO aims to focus on renewable energies with high growth potential such as wind power, photovoltaic power and
geothermal power while minimising carbon emissions. KEPCO will also commercialise technologies of eco-friendly
thermoelectric power plants like IGCC and CCS, and be active in the hydroelectric power market by capitalising on the
affluent water resources of Latin America and Southeast Asia.
Resource Exploration
Amid increasingly competition for natural resources due to fierce resource

nationalism and the control of resource-rich nations over their resource exports,
KEPCO actively explores overseas resources to secure a stable supply of fuels
and hedge against fluctuating fuel costs. For example, in 2010 KEPCO’s six major
initiatives, includes a takeover of the Bylong mine in Australia, and secured 24
million tonnes of bituminous coal per year. Resource explorations offer a stable
supply of fuels for power generation and create extra profits arising from takeovers
of overseas mines. KEPCO’s resource explorations aim to achieve USD4.7 billion
in sales, or a 60% self-sufficiency rate of bituminous coal and uranium by 2020.
On top of that, KEPCO will promote a trading business in a bid to broaden its
regional horizons and make the best use of already developed resources.
Figure 5: Status of Overseas Projects in 2017

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8 CEPSI 2014
Conference of Electric Power Supply Industry
As the president of AESIEAP, KEPCO

Figure 6: International Convention Centre Jeju, South Korea
was proud to successfully host CEPSI
2014 in Jeju, South Korea. Nearly 2,200
top executives comprising of power
suppliers, bureaucrats and scholars from
35 countries attended the event under
the theme ’Smart and Green Society’.
EGAT hosted the next CEPSI in 2016.
Jeju is an island which has a mild oceanic

climate throughout the year with the
smallest annual temperature range in
the country. Jeju is the largest island in
South Korea and came into existence
700 to 1,200 thousand years ago when Figure 7: CEPSI 2014 in Jeju, South Korea
lava spewed from a sub-sea volcano
and surfaced above the waters. Mount.
Halla rises in the centre of Jeju to 1,950m
above sea level. Relatively isolated from
the rest of the world, the island’s nature
has been well preserved in its prehistoric
state. In 2002, the island was designated
as Biosphere Reserve, World Natural
Heritage in 2007 and Global Geopark
in 2010, making the sub-tropical island
only place on Earth to receive all three
UNESCO designations in natural sciences. Figure 8: Host for CEPSI 2016 - EGAT
1 74
LAOS C EPS I 2018
Vientiane USD2,408
per capita
6,457.6 MW (2016)
236,800 Currency:
92.39%
km 2
Lao Kip
(LAK)
(end of 2016)
Population:
6.49
million (2015)
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C EPS I 2018
Electricity Sector
The electricity sector plays an important role in supporting Development aims to ensure the sustainable use of natural
the socio-economic growth of the Lao People’s resources and secure the power supply for the future.
Democratic Republic (Laos). The government promotes Other generation sources include coal thermal, biomass
the development of the country’s power sector through and solar. Solar, wind and other renewable energies are
the Ministry of Energy and Mines (MEM). Under the ministry, now being studied for their potential development in the
there is one state-owned power utility, Electricite du Laos country.
(EDL). EDL undertakes electricity generation, transmission
and distribution across the country. EDL has two subsidiary Access to electricity is crucial for the development of
companies, EDL-Generation Public Company and Nam the nation and the society. The government aims for
Ngum 3 Power Company. The electricity generation sector 98% of all households to have access to electricity by
is also open for independent power producers (IPPs). 2025 and expects to meet this target. This is because
the electrification rate has been increasing dramatically
Laos has high potential for hydropower of up to 26,000MW across the country, illustrating the nation’s commitment to
and as of 2016, the country has developed about 17% of this ensuring sufficient power supply and moving towards the
potential. The National Policy on Sustainable Hydropower achievement of 100% electrification in the near future.
Figure 1: Electrification Rate

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National Energy Policy • Develop and enhance the legal and regulatory
framework to facilitate the development of the power
The government envisions the development of the energy sector by either public, private or public-private
sector to be further advanced in terms of technology, partnerships.
efficiency and sustainability and ensures a stable and • Gain capacity building through international technical
secure supply of domestic energy and promotes cross- know-how and expertise.
border and regional energy integration. • Ensure accountability and transparency of the
environmental and social impacts and thereby achieve
For the electricity sector in particular, the government has sustainable development.
set the following policies:
• Maintain and expand an affordable, reliable and
sustainable electricity supply to promote economic The electricity market structure of Laos is regulated by
and social development. the Ministry of Energy and Mines (MEM). The main players
• Promote power exports as well as the domestic power include the state-owned power utility EDL, the public
supply to earn revenue to meet the government’s power utility EDL-Generation Public Company and several
development objectives, with particular emphasis on independent power producers. EDL is the authorised
poverty eradication. single buyer and distributor for the domestic electricity
market. The figure below illustrates the electricity market
structure.
Figure 2: Overview of Electricity Market Structure

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The electricity supply industry is mainly regulated by the Electricity Law, the Enterprise Law, the Environmental
Protection Law and other related regulations. The MEM governs the domestic electricity supply and cross-border
power trading.
The MEM formulates policies and regulates all electricity utilities and generating sources.
Figure 3: Power Demand Forecast for Whole Country (MW)
Table 1: Demand Forecast (MW)
Year 2005 2006 2007 2008 2009
Demand forecast (MW) 1,082 1,325 1,659 2,738 4,179

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Figure 4: The Amount of Electricity Exported and Imported 2016 by EDL
Table 2: The Yearly Average Sales Price
Total Power Consumption Total Power Consumption

Sector as of 2016 (kWh) as of 2016 (%)
Industrial 2,298,575,517 45.4%
Residential 1,734,956,235 34.3%
Commercial 993,162,956 19.6%
Agriculture 36,091,605 0.7%
Total 5,062,786,313 100%
Figure 5: The Amount of Electricity Exported and Imported 2016 by EDL

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Total installed capacity of generation by fuel types (in MWh)
• Hydropower: 4,971.2MW accounting for 72.3% of total installed capacity and annual generation 23,420GWh.
• Coal-fire: 1,878MW accounting for 29% of total installed capacity and annual generation 12,582GWh.
• Solar cell: 3MW accounting for 0.04% of total installed capacity and annual generation 18GWh.
• Other (micro hydro, diesel and biomass): 26MW accounting for 0.38% of total installed capacity and annual
generation 148GWh.
Figure 6: Structure of Installed Generating Table 3: Installed Capacity by Producers as of 2016

Capacity by Producers (utilities and IPPs)
Producers Installed Capacity (MW)
EDL 709.5
IPP(d) 1,334.8
IPP(e) 4,410.0
Other 3.3
List of Major Power Plants by Fuel Types
Installed Capacity
No. Name of Project Location Type MW GWh
North 2,656.3 15,920.1
1 Nam Dong Luangprabang Run off river 1.0 4.7
2 Nam Ko Oudomxay Run off river 1.5 7.9
3 Nam Nhon Borkeo Run off river 3.0 12.0
4 Nam Tha 3 Luangnamtha Run off river 1.25 5.5
5 Nam Long Luangnamtha Run off river 5.5 30.0
6 Hongsa (Lignite) Xayabury Thermal 1,878.0 12,582.0
7 Nam Khan 2 Luangprabang Reservoir 130.0 558.0
8 Nam Ou 2 Luangprabang Reservoir 120.0 546.0
9 Nam Ou 5 Phongsaly Reservoir 240.0 1,049.0
180
C EPS I 2018
Installed Capacity
North 2,656.3 15,920.1
10 Nam Ou 6 Phongsaly Reservoir 180.0 739.0
11 Nam Beng Oudomxay Reservoir 36.0 136.5
12 Nam Khan 3 Luangprabang Reservoir 60.0 249.5
Central 1 1,460.4 6,066.6
1 Nam Ngum 1 Vientiane Province Reservoir 155.0 1,002.0
2 Nam Mang 3 Vientiane Province Reservoir 40.0 150.0
3 Nam Leuk xaysomboun Reservoir 60.0 218.0
4 Nam Lik 1/2 Vientiane Province Reservoir 100.0 435.0
5 Nam Ngum 2 xaysomboun Reservoir 615.0 2,218.0
6 Nam Song (Ex) Vientiane Province Reservoir 6.0 25.0
7 Nam Ngum 5 Vientiane Province Reservoir 120.0 507.0
8 Tadlang-Nam sen Xieng Khuang Run off river 5.0 25.0
9 Nam Sana Vientiane Province Run off river 14.0 49.6
10 Nam Ngiep 2 Xieng Khuang Reservoir 180.0 721.0
11 Nam Ngiep 3 A Xieng Khuang Reservoir 44.0 152.3
12 Nam San 3B xaysomboun Reservoir 45.0 198.0
13 Nam San 3A xaysomboun Reservoir 69.0 347.0
14 Nam Sho xaysomboun Run off river 7.38 18.7
Central 2 1,648.9 9,496.0
1 Theun-Hinboun Khammuane Reservoir 220.0 1,251.0
Theun-Hinboun
2 Khammuane Reservoir 220.0 1,440.0
(Extension)
3 Nam Theun 2 Khammuane Reservoir 1075.0 6,000.0
4 Nam Phao Bolikhamxay Run off river 1.7 8.5
5 Nam Gnuang 8 Bolikhamxay Reservoir 60.0 310.0
6 Tadsalen Savanhnaket Run off river 3.2 17.0
Sugar Thermal factory
7 Savanhnaket Biomass 5.0 25.0
Mitlao
8 Nam Mang 1 (H) Bolikhamxay 64.0 444.5
South 688.8 2,876.3
1 Houay Ho Attapeu Reservoir 152.0 617.0
2 Selabam Champasak Run off river 5.0 21.5
3 Xeset 1 Saravane Run off river 45.0 133.9
4 Xeset 2 Saravane Run off river 76.0 309.0
5 Xekaman 3 Sekong Reservoir 250.0 982.9
6 Xenamnoy 1 Sekong Run off river 14.8 80.0
181
C EPS I 2018
Installed Capacity
South 688.8 2,876.3
7 Houay LamphanNgai Xekong Reservoir 88.0 500.0
8 Xenamnoy 6 Champasak Run off river 5.0 27.0
9 Xeset 3 Saravane Reservoir 23.0 82.0
Biomass from Sugar
10 Attapeu Biomass 30.0 123.0
Thermal factory
Prov
Micro-hydro 1.2
Micro-hydro 0.2
Solar 0.5
Diesel 1.5
Total 6,457.65 34,358.98
Table 4: List of Power Grid by Major Voltage Levels
115kV 35kV SW 25kV 22kV SWER 12.7kV SWER 0.22kV 0.4kV

Years km km km km km km km
2011 3,342.76 188 167 17,127 268 60 13,813
2012 4,553.53 152 1568 20,613 279 77 15,172
2013 4,356.66 199 105 22,474 290 119 15,971
2014 4,538.53 220 9.65 24,688 296.24 68.74 17,128
2015 5,257.18 237 - 26,450 244.75 47.84 178,766
2016 6,968.23 260 - 28,264 236.64 47.27 18.376
Figure 7: Hydro Dam in Laos

182
C EPS I 2018
Figure 8: Existing Power Interconnection
China
35/22kV
Gnot-Ou
(District)
Lao People,s Democratic Republic
Peace Independence Democracy Unity Prosperity Ê
Nam Ou 9
M
IPP.D
ek
on
450 KW
g
Nam Ou 6
IPP.D
180 MW
Phongsaly
Meng La
(China) Nam Ou 5
60MW IPP.D
Bountai 240 MW
35/22kV
35/22kV 10kV Khao - Dian Bian (PC 1)
(District)
Myanmar
Sing
(District)
Borden
Luang Namtha Nam Tha 3
EDL
Nam Long 1.3MW
long IPP.D
(District) 5MW
22kV LuangNamtha 1 Namo
Myanmar
Namo 2
Oudomxai
Nam ko 35kV
EDL
N. Nhon Bokeo 1.5 MW Sop bao - Mokchao (PC 1)
(District)
IPP.D
Tonpheung 2.4 MW
(PEA Thailand)
22kV (District)
Xieng Saen
Pakmong 2 Xamneua1
Oudomxai Pakmong
Luang Prabang
Nam Ou 2
Houayxay
22kV
Xieng Khong
(District) Nam Nga 2
IPP.D
IPP.D
120 MW Huaphanh
(PEA Thailand) 14.5 MW
Gold
Mining
Nam peun 2
Nam Beng IPP.D
IPP.D 12 MW
36 MW
SwS
Luang Prabang1 Sein souk
Nam Dong
EDL
1MW
Central 1
Vieng Keo Nam Khan 3
EDL
22kV Hongsa Lignite Luang Prabang 2 60 MW
Khop
(District) Ngeun IPP.E / EDL (Xieng Ngeun)
(District) 1700 / 100 MW Xieng Ngeun Nam Khan 2
EDL
Xienghon 130 MW
(District)
22kV
22kV Xieng Khuang
N. Ngum 5
Phonsavan
Nam Sana IPP.D
EDL 120 MW N. Ngiep 3A
14MW IPP.D
Kasi 44MW Nahor
Xayabuly (M.koun)
Nam Ngiep 2
Nam Phai IPP.D Nam Ngipe 2C
IPP.D 180 MW IPP.D
86 MW 14MW
Thavieng
Nam Pha Gnai
IPP.D Nam San3B Nam So
To Mae Moh 15 MW IPP.D IPP.D
45 MW Nam San3A 7.38 MW
(Thai Land) VangVieng Thongkhoun 2
V
IPP.D
Vientiane HouaySai
Mining Xaysomboun 69 MW
Xayabuly Nam Lik1/2

Phubia Thong
i
IPP.D Nam Song

100MW EDL Mining Khoun1
6 MW
e
Nam Ngum 2
IPP.E
Ban Don Hin Heup 615 MW
t
Nam Ngum 1
EDL155 MW Nam Mang 1
(Ext 80MW)
N
IPP.D
64 MW
Bolikhamxai
Detour Line
Non Hai Nam Leuk

Paklay EDL
Thalat 60 MW
a
Nam Mang 3 Nam Phao

EDL Thabok IPP.D
Phonsoung Pakxan N. Gnuang 8 1.6 MW
40MW
m
EDL
60 MW
Solar Farm Potassium Thasala
EDL-G Nakadok
3 MW Iron melting
Mining
Naxaythong Theun Hinboun
Tha Ngon
Bung kan IPP.E
440 MW B. Pompik
Vieng Keo (Km 20)
Pak Thang Nabong Lan Xang
Khoksa-at VITA Cement Factory
Phontong
Khonsong
Ce
Thanaleng
Donkoi
Khammouan
Kenthao
Vientiane Capital
nt
(District) Nam Theun 2

IPP.E/ EDL
22kV Nong Khai 1013 /75 MW
Ban Veun SwS
ra
Boten
(District)
Mahaxai
22kV Cement factory
(at Mahaxai)
l2
Thakhek
ThaiLand
KCL
Nakhon Phanom Cement Factory
To Udon3 MCS
Factory
Sakon Nakhon
Sepon Mining
LEGEND
Mitlao Tadsalen
Sugar Mill IPP.D
6 MW
M. Phin 3.2 MW
Hydro power Hydro power Hydro power B. Met 35/22kV

Pakbo (SENO)
(Existing) (UnderConstruction) (Planned) Mukdahan Dansavan - Lao Bao (PC 3)
Nongdeun
Savannakhet
To Roi Et 2 Kengkok
EDL and IPP(d) Hydro Power Plants,
35/22kV
Samuay (District) - Are Ngor (PC 3)
EDL and IPP(e) Hydro Power Plants,
EDL and IPP(d) Thermal Power Plants, Mek

ong
EDL and IPP(e) Thermal Power Plants,

22kV
115/22 kV Substation, Taothan

Saravan Ka Lum (District)
Dak Oc (PC 3)
Ban Nathone
(Saravan)
230/115/22 kV Substation,
22kV
Dak chung (District)
500/230/115/22 kV Substation,
Xeset1
EDL
45 MW
Sekong Dak Oc (PC 3)
Xekaman 3,
Selabam Thanh My
EDL Xeset 2 IPP.E / EDL
EDL H lamphanh Gnai Nongbong 215 / 125 MW
5 MW EDL
76 MW
GIS Substation, Xeset3
88 MW
EDL
24 MW Xenamnoy1
500kV Back To Back Substation IPP.D
15 MW
Bang yo Jiangxai Xenamnoy6
Pakxong
34.5 / 22 kV Transmission Line, IPP.D
6MW XN 2-Xk1
To Ubon 2 IPP.D
10 MW Houay Ho,
IPP.E / EDL
115 kV Transmission Line, 150 / 2 MW
Xekaman 1,
Sirindhorn
36 MW
Attapeu IPP.E
258
EDL 32 MW
230 kV Transmission Line,
Southern
Phuvong (District)
Houay Samong Saphaothong Ber E (PC 3)
g
IPP.D 22kV
on
1.65 KW
Mek
500 kV Transmission Line, Sugar Factory

IPP(d)
20 MW
Ban Na
Upgrad Coductor Size Champasak To Plei Ku
Under Ground Transmission Line
BanHat
22kV
Khampongsalao
(Cambodia)
22kV
ELECTRICITÉ DU LAOS
Technical Department
Power System Planning Office
LONG-TERM To Stung Treng

POWER DEVELOPMENT PLAN
(PDP 2017 - 30) Cambodia
Existing Power System Diagram
in year 2017
DWG: by Sithamma Souvannasan
Update: May 31, 2017

183
C EPS I 2018
Thailand
Voltage EDC EVN CSG Myanmar Total
EGAT PEA
22/35kV 2 6 3 1 7 19
115kV 1 5 6
230kV 1 2 3
500kV 3 3
Total 2 7 4 1 10 7 31
Figure 9: Long-term Power Development Plan for Generation
Substation Development Plan by 2025 Transmission Line Development Plan by 2025
36 substations are planned to be developed in Laos by The total lengths of the planned transmission lines to be
2025 as follows: developed by 2025 are as follows:
• 6 locations are 500/230/115/22kV substations • 3,658 km owned by EDL

• 15 locations are 230/115/22kV substations • 3,195 km owned by IPP(d)
• 15 locations are 115/22kV substations • 847 km owned by IPP(e)
184
C EPS I 2018
Strategic Cross-Border Interconnection Development Plan
Projects
No Voltage (kV) Region Progress COD Owner
From To
Tha li Under
1 Paklay 115 North 2018 EDL
(Thailand) Construction
Loei 2 Under
2 MK_Xayabuly 500 North 2019 IPP(e)
Ubon 3 Under
3 Ban Lak 25 500 South 2019 IPP(e)
4 Na Mo Ban Na (China) 500 North Under Study 2021 EDL
Plei Ku
5 Hat Xan 500 +B2B South Under Study 2021-25 EDL
(Vietnam)
Mae Chan New
6 Ton Pheung 115 North 2020-24 EDL
(Thailand) Proposed
Tachileck New
7 Ton Pheung 115 North 2020-24 EDL
(Myanmar) Proposed
Nan 2
8 Muang Houn 500 North Planned 2024 EDL
(Thailand)
Shan State
9 M. Long 230 North Planned 2025 EDL
(Myanmar)
Stung Treng
10 Ban Hat 230 South No Progress N/A EDL
(Cambodia)
Figure 10: Transmission and Power Plant in Laos

185
C EPS I 2018
Figure 11: Transmission System in Laos
Legend : 115 kV
230 kV
500 kV
186
C EPS I 2018
4 Reduction of Carbon Emissions
The Policy of Renewable Energy and Major Regulatory Mechanism of Renewable Law
The government recognises the importance of renewable social management and monitoring activities to ensure
energy in securing and sustaining the power supply in that all activities are carried out as planned and conform to
Laos and the region. The government aims for 30% of the relevant laws and regulations.
renewable energy in the total energy mix by 2030. Many
policies are being formulated to promote the development Laos is highly vulnerable to climate change. In 2000,
of renewable energy in Laos, including the Decree the country’s greenhouse gas (GHG) emissions were
and Agreement on the Management and Utilisation of 51,000Gg, which is negligible compared to total global
Renewable Energy (solar, biogas, biomass and wind) emissions. Even so, Laos has ambitious plans to reduce
and the National Policy on Environmental and Social its GHG emissions while at the same time increasing its
Sustainability of the Hydropower Sector. resilience to the negative impacts of climate change. Such
plans include:
Environmental issues related to power system development
projects can include their impact on water resources, I. An ambitious target set out in the National Forestry
forest, wildlife and soil. Strategy to the Year 2020 for increasing forest cover
to 70% of land area by 2020, and maintaining it at that
These issues are addressed through laws and regulations level going forward. This will reduce the risk of floods
on environmental protection. The MEM regulates the and prevent land degradation - at the same time, the
environmental aspects for the electricity supply industry. greenhouse gas mitigation potential of such a target is
The issues are addressed through mitigation plans for each substantial and long lasting.
power development project. Each project must establish II. In terms of Laos’ large-scale electricity generation,
its own environmental management and monitoring plan the electricity grid draws on renewable resources for
and regularly report its activities to the Ministry of Natural almost 100% of its output. Laos also aims to utilise
Resources and Environment. unexploited hydropower resources to export clean
electricity to its neighbours. By supplying neighbouring
EDL’s policies on environmental and social responsibilities countries such as Cambodia, Vietnam, Thailand and
comply with the country’s laws and regulations. Each of Singapore with hydroelectricity, Laos is enabling other
EDL’s development projects follows the national guidance countries in Southeast Asia to develop and industrialise
on environmental and social impact assessment. Each in a sustainable manner.
project identifies the appropriate mitigation action for the III. The government has also laid the foundations for the
environmental and social impact. During construction implementation of a renewable energy strategy that
and operation, each project conducts environmental and aims to increase the share of small-scale renewable
energy to 30% of total energy consumption by 2030.
187
C EPS I 2018
5 Advanced Metering Infrastructure (AMI)/Smart Grid Deployment
The Automatic Meter Installation initiative has successfully installed 1,700 meters nationwide (as at May 2017). The
project will continue to increase the number of automatic meter reading (AMR) installations to help EDL’s distribution to
be more effective and boost customers’ satisfaction. AMR helps increase the reliability of the meter readings and billing.
6 Major Issues or Transformation Impacting the Electricity Supply Industry
Based on the Power Development Plan, most domestic power plants are hydro. Thus, in order to make the power system
stable, EDL should diversify the power sources as follows:
• Hydropower plant with reservoir

• Solar power
• Wind power
• Thermal power plant
• Other clean power sources
188
MACAU SAR C EPS I 2018
Area: Installed Capacity:
30.5
km2
408
MW
Population: Percentage of Population
648,500 100%
Electrified:
million
189
C EPS I 2018
Sector Total Power Consumption

as of 2017
(GWh)
Industrial 135
Residential 1188
Commercial 4054
TOTAL 5377
Energy Policy Laws and Governmental Regulations
Macau is a Special Administrative Region of the People’s Republic of China. CEM has to abide with the
Inside the Region there is little available space to build new power stations. concession contract law and follow
CEM - Companhia de Electricidade de Macau, SA,- provides the electrical all laws and regulations related to
infrastructure to facilitate the import of power from mainland China. the electricity service such as the
Supervised Entity Law; the General
Conditions of Supply for MV and
LV; the Quality of the Supply, Tariffs
CEM uses fuel oil and natural gas for generation but the majority is imported
and Charges; Metering; Electrical
from mainland China.
Installations (Design and Installation,
Overview of Electricity Market Structure Licensing, Responsibilities, Safety);
Fuel Installations; Environmental
CEM is a public utility with the sole concession to transmit, distribute and sell Protection (Acoustics, Water, Ozone,
high, medium (MV) and low-voltage (LV) electricity in Macau. CEM also owns Sulphur, CO2, Particulates, etc.);
power generation facilities. Occupational, Health and Safety;
Labour and Social Security, as well
as with Penal, Administrative and
Commercial Codes.
190
C EPS I 2018
Electricity Consumption or Demand in 2017 to 2022 and Expected Annual Growth Rate in Next Decade
Consumption is expected to grow at an annual rate of about 4.2% from 2018 to 2023 and at a rate of about 3.5% in the
following decade.
Table 2: The Amount of Electricity Exported and Imported (in MWh)
Year Consumption (GWh)

2018 5510.6
2019 5780.8
2020 6045.7
2021 6334.8
2022 6544.5
2023 6760.9
(Unit: MWh)
Net import from mainland China – 4,306GWh
From Macau Incineration Power Plant – 161GWh
Tariff Structure Total Amount of Energy Consumption by Sector
The tariff structure is categorised as below:

• Tariff Group A - available to customers supplied by low-
voltage network (230/400V) with a subscribed demand 2.5 %
up to 69kVA. 22.1%
• Tariff Group B - available to customers supplied by
medium or low voltage with subscribed demand not
less than 69kVA and monthly consumption not less than
10,000kWh. Industrial - 135GWh
• Tariff Group C - available to customers supplied by Residential - 1,188GWh
medium voltage and with subscribed demand not less 75.4% Commercial - 4,054GWh
than 1,000kVA or 857kW.
191
C EPS I 2018

Figure 1: Primary Substation
The total installed capacity of generation is 407.8MW,

detailed as below:
a) 231.4MW - diesel fuel oil units
b) 40MW - steam turbine units
c) 136.4MW - combined cycle units
Table 3: List of Power Plants by Fuel Types
Power Station Unit Installed Capacity (MW)

CCA G01 20.00
CCA G02 20.00
CCA G03 24.00
CCA G04 24.00
CCA G05 38.60
CCA G06 38.60
CCA G07 53.10
CCA G08 53.10
Natural Gas
CCB GT1 45.10
CCB GT2 45.10
CCB ST1 46.20
Total 17 407.8
192
C EPS I 2018
List of Power Grid by Major Voltage Levels

Figure 2: Boiler in CEM
Voltages used at CEM are 220kV, 110kV, 66kV and 11kV.
Macau has recorded continuous its growth in the past few

years and is expected to continue its growth at a progressive
rate in the next decade with the completion of the Hong
Kong-Zhuhai-Macau Bridge and the development of the
Greater Bay Area. Hence, the distribution and transmission
network will continue to be expanded. Since the major
source of power for Macau is imported from mainland
China, CEM is building a third interconnection link with
mainland China’s grid. Moreover, a new eco-friendly and
efficient Combined Cycle Gas Turbine generation unit will
be built to retain Macau’s power generation capacity.
The Policy of Renewable Energy and the Major Regulatory Mechanism of Renewable Law
The Macau SAR Government launched the ’Regulation for Safety and Installation of Solar Energy PV Interconnections‘ in
January 2015, with an on-grid feed-in tariff higher than the normal tariff.
CEM closely cooperates with the Macau SAR Government for necessary RE law implementation. In compliance with the
regulations, the public utility must purchase the electricity generated from the PV system.
0.01GWh from PV system.
Environmental Challenges of Electricity Supply
Macau SAR adheres to the Kyoto Protocol since its implementation in Macau in 2008 and Macau has been working
alongside the global community in global energy-saving and emission reduction projects.
193
C EPS I 2018
Plans and Strategies to Reduce

Figure 3: Coloane A Power Station (CCA) Greenhouse Gas Emissions
CEM conducts six greenhouse gas

(GHG) inventories: CO2, CH4, N2O,
HFCs, PFCs, and SF6 as well as the
leading air pollutants NOx, TSP (Total
Solid Particles) and SO2 based on
the scientific consensus regarding
the existence and severity of climate
change. The quantity of CEM’s GHG
emissions is in compliance with the
requirements of ISO 14064:2006
greenhouse gas management system
certification.
With the new Combined Cycle Gas Turbine unit built in Coloane Power Station, emissions will be further reduced and
efficiency increased. Energy conservation is promoted through public and campus educational programmes.
5 Advanced Metering Infrastructure (AMI) /Smart Grid deployment
a) AMI pilot project - expected to be finished by the end of 2018 with 2,000 smart meters installed
b) EV Charging Station and management system
c) Next Generation System Dispatch
d) Online DGA Platform for power transformers
e) Smart public lighting pilot project
f) MV optical fibre communication network deployment
194
C EPS I 2018
Challenges Faced and Solutions Taken

Figure 4: Substation
a) Fibre backbone deployment is limited by trench work

and requires better coordination with the construction
department and government departments.
b) Complex and congested living and electricity network
environments is one of the biggest challenges
for the last mile communication. Two different
communication technologies, namely PLC and RF,
will be tested in the AMI pilot project for performance
verification.
c) Introduction of AMI would have great impact on
existing business processes which requires extensive
discussion and reengineering of business processes.
AMI Roll-Out Plan
The AMI project Phase 2 will be continued after completion of Phase 1 by 2018. System function enhancement and
optimisation will be the key target for Phase 2 with the operation experience collected from Phase 1. The target is to
install 20,000 more smart meters by 2020.
AMI Offerings to Customers and the Benefits
a) Enhance outage management

b) Streamline customer application processes and improve customer experience
c) Real time management of meter status
d) Multi tariffs application, time-of-use (TOU)
Besides providing customers with safe and reliable electricity at reasonable prices in the coming years, we will strive to
provide a smarter and more eco-friendly power service, and build a green society for the future generations of Macau. We
will implement a smart metering pilot project and build a new LEED-certified dispatching centre. To promote ‘go green’,
we will expand the electric vehicle (EV) charging network in different districts. Our mid-term goal is to provide 250 EV
charging stations for citizens within five years.
195
C EPS I 2018
7 Major Challenges or Transformations Affecting the Electricity Supply Industry
The Macau SAR Government has announced safety and technical guidelines on EV charging facilities and this is expected
to spur the development of electric vehicles in Macau. CEM continues to promote the application of electric vehicles.
Over 106 charging stations have been installed at 26 public car parks. CEM has put forward a solution for the installation
of EV charging stations in parking lots and is preparing for a large-scale connection of electric vehicles to the power grid.
Other Related Activities and Initiatives - Including Sustainability, Research and Development, Customer
8
Service, Communication and Branding
To provide a brand-new customer experience, in February

Figure 5: Customer Service Centre
2017, CEM launched a new corporate website and the ’CEM
eService‘ mobile application, featuring one-stop online
services including account management, applications for
power supply and reservations for meter reading. CEM’s
corporate website won the US-based WebAward 2017 for
Outstanding Achievement in Web Development for the
first time in the category of Public Relations Standard of
Excellence.
Located in the CEM Building in Estrada D. Maria II, the new

Customer Service Centre has been renovated to provide
customers with better services. Apart from the refreshing
atmosphere brought by the natural interior design, eight
service counters and a self-service kiosk have also been
added to streamline service procedure. Customers can
even enjoy a nice cup of coffee while waiting to be served.
196
MALAYSIA C EPS I 2018
Source:
Capital: Currency:
1. The Government of Malaysia’s Official
Kuala Malaysian Gateway’s website: https://www.

malaysia.gov.my
Lumpur Ringgit
2. International Monetary Fund’s
website: http://www.imf.org/external/
datamapper/NGDPD@WEO/OEMDC/
(MYR) ADVEC/WEOWORLD/MYS
3. National Energy Balance (NEB) 2016 by
Area: Energy Commission, Installed Capacity
Installed Capacity3:
329,960.22
as of 31st December 2016. Including
33022.7MW
IPP, Co-Gen, Self-Gen and FIT
km 2
1
(Peninsular 25,400.8MW,
Sabah 2,524.3MW &
Population: Sarawak 5,097.7MW)
30.68
million1 Percentage of Population
Electrified:
GDP (at current price)2: 99%

Peninsular Malaysia:
USD364.92 East Malaysia: 81.5% (Sabah)

billion (in 2017) 90% (Sarawak)
197
C EPS I 2018
1 Introduction
The electricity supply industry in Malaysia consists of efficiently regulate the electricity industry in the state are
three main vertically integrated power utilities, namely the Electricity Ordinance - Chapter 50 (Revised 2003),
Tenaga Nasional Berhad (TNB) in Peninsular Malaysia, the Electricity Rules 1999 and the Electricity (State Grid
Sabah Electricity Sdn. Bhd. (SESB) in Sabah and Sarawak Code) Rules 2003. The role of regulating the electricity
Energy Berhad (Sarawak Energy) in Sarawak. Sabah supply industry in Sarawak is vested with the Electrical
Electricity Sdn. Bhd. is an 83% owned subsidiary of TNB. Inspectorate Unit under the jurisdiction of the Ministry of
SESB is a vertically integrated utility providing electricity Public Utilities Sarawak.
generation, transmission, distribution and supply services
in the state of Sabah and the Federal Territory of Labuan. Electricity tariffs charged to the consumers in Malaysia are
regulated under the law. Tariff rates in Peninsular Malaysia,
The three main utilities undertake electricity generation, Sabah and Sarawak differ due to the differences in the
transmission, distribution and supply activities in their electricity cost of supply among the regions. Amongst
respective areas and are investor-owned entities with the the principles applied in determining the tariff rates are
Government as the major shareholder. In the early 90s, for the tariff to be reflective of the cost of supply, while
the generation sector was opened for competition to providing adequate returns for the utility companies.
Independent Power Producers (IPPs) to supply electricity The tariffs should be well-structured to allow businesses
to the utilities through Power Purchase Agreements (PPAs). and industries to stay competitive and affordable to
In the distribution sector, TNB, SESB and Sarawak Energy consumers, as well as providing a social safety net to the
remain the main distributors of electricity, however the most deserving segments in the society (e.g. subsidised
Government also issues licences to local distributors for tariffs for the poor and lower income households etc.).
designated areas (e.g. hill resorts, shopping complexes,
industrial parks etc.) and co-generators. In 2009, the Government of Malaysia embarked on the
MESI Reform Programme, with a marked shift towards
The Malaysian Electricity Supply Industry (MESI) is best practices in regulation by enhancing the regulatory
governed by the Electricity Supply Act (ESA), which was oversight across the entire value chain of the industry.
enacted in 1990. The ESA 1990 empowers the Minister The MESI reforms have brought about some changes
responsible for the energy sector to regulate and issue including the competitive award of new generation
directives for the industry. ESA 1990 was amended capacity administered by the EC. In addition, a ring-
in 2001 in accordance with the establishment of the fenced Single Buyer and Grid System Operator have been
Energy Commission (EC) as the regulator of the MESI. established to procure electricity and fuel at the lowest
The EC was established through the enactment of the cost as well as to operate the grid in a safe, reliable and
Energy Commission Act (ECA) 2001. The EC is the entity economical manner.
responsible for regulating energy supply activities and
enforcing energy supply laws and other regulations related In terms of electricity growth, unusually high temperatures
to the energy sector in Peninsular Malaysia and Sabah. In between December 2015 to May 2016, attributed to the El
Sarawak, the frameworks established to effectively and Nino phenomenon, caused a sudden surge in electricity
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demand. The maximum peak demand of 17,788MW was higher compared to 104,653GWh in FY2015 and resulted
recorded on 20 April 2016, surpassing the initial target in growth of 4% in FY2016 compared to 2.2% in FY2015
of 17,317MW by 2.7% while the highest daily energy and 2.5% in FY2014.
generation of 372GWh was recorded on 20 April 2016
against a previous record of 355.8GWh in 2014. Total sales Source:
Peninsular Malaysia Electricity Supply Outlook 2017
recorded for FY2016 of 108,858GWh is also significantly
Figure 1: Map of Malaysia
Table 1: Malaysia Energy Statistics Handbook 2017. Data as on 31 December 2015.
Peninsular Malaysia Sarawak Sabah

No. of customers : 8,554,518
1
No. of customers : 638,299
1
No. of customers1: 576,010
Capacity2: 25400.8MW Capacity2: 5097.7MW Capacity2: 2524.3MW
Max Demand1: 17,788MW Max Demand2: 3040MW Max Demand2: 945MW
Source:
1. Performance and Statistical Information on Electricity Supply Industry in Malaysia 2016.
2. National Energy Balance by Energy Commission. Data as 2016.
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2 Energy Policy and Electricity Supply Industry
Malaysia Economy Outlook
The Malaysian economy performed strongly in 2017, in COP21 which is to reduce its greenhouse gas emissions
registering growth of 5.9% (2016:4.2%). Growth was intensity of Gross Domestic Product (GDP) by 45% by year
anchored by domestic demand, reflecting faster expansion 2030, compared to 2005 levels.
in both private and public sector spending. Similar to the
region, Malaysia benefitted from the broad-based global The Demand Forecast Study FY2016 includes the study
recovery, with gross exports increasing at its fastest pace on the integration of the impact of RE generation and
since 2004. The materialisation of positive spillovers from EE savings in its projection analysis of electricity sales,
the external sector further reinforced domestic demand. generation and peak demand. Cumulative electricity
savings of 11% throughout the forecast horizon, the
Total electricity consumption grew with an annual growth impact of tariff increases, NEM and electric vehicle
rate of 8.9 percent. The electricity generation mix in 2016 (EV) at the end-user side, FiT and LSS generation
was made up of coal with a share of 44.9 percent (2015: were among the new features of the 20-year forecast
42.3 percent), followed by natural gas with 40.7 percent horizon. Other main drivers include the state income,
(2015:46.6 percent) share, hydro with 13.3 percent (2015: socio- demographics, technical and historical electricity
9.3%), diesel and fuel oil with 0.7 percent (2015: 1.2%), and demand trends, which remained the commonly correlated
renewables with 0.4 percent (2015:0.7%). The electricity factors of electricity demand.
generation mix shows that coal has overtaken gas as the
dominant fuel. Total installed capacity as at end 2016 was The forecast was completed in February 2016 and was
33,090MW, an increase of 8.7 percent from 2015. Electricity used as input to the generation development plan. In
demand was driven primarily by the industry sector, which general, the demand forecast was revised downward,
constituted 47.0 percent (2015:45.9%) of total electricity incorporating the new features as well as the current
consumption. The commercial and residential sector’s trend of slow demand in the industrial sector. For FY2016,
electricity consumption were 30.8 percent (2015: 32.2 electricity sales are forecast to grow at 2.1%, generation
percent) and 21.6 percent (2015: 21.4 percent), respectively, at 2% and peak demand at 2.9%, lower than the set
while the remaining went to the transportation and of forecasts earlier approved during the Planning and
agriculture sector, with each consuming 0.2 percent Implementation Committee of Electricity Supply and Tariff
and 0.4 percent of the total electricity consumption, (JPPPET) 1/2015. The revised set of demand forecasts was
respectively. approved by JPPPET in August 2016.
It is expected that the share of renewables in the electricity Under the approved forecast, peak demand is projected
generation mix will increase in the upcoming year as some to reach 17,317MW, to be recorded during March to May
of the generation projects from Large-Scale Solar (LSS) and - being the expected peak months for the year. However,
Net Energy Metering (NEM) initiatives are commissioned. a strong El Nino phenomenon struck the country starting
This is in line with the commitment that Malaysia has made in December 2015 and lasted until May 2016. The
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phenomenon caused temperatures to rise 1 to 2 degrees a 5.2% jumped in terms of growth compared to the previous
above the average, led to a significant increase of electricity peak demand of 16,901MW registered in June 2014.
consumption especially from domestic and commercial
customers due to the higher usage of air-conditioners. Source:
1. Bank Negara Malaysia Annual Report 2017
2. Peninsular Malaysia Electricity Supply Outlook 2017
After a negative peak growth recorded in 2015, the new 3. National Energy Balance by Energy Commision, 2016.
peak demand was achieved on 20 April 2016 at 17,788MW,
Key Statistics of MESI
Table 2: TNB Electricity Consumption in 2015 and 2016
Electricity Consumption Electricity

2015 Consumption 2016 Percentage Change
Sector (GWh) (GWh) (%)
Domestic 23,231 25,745 10.82
Commercial 36,645 39,447 7.65
Industrial 43,754 42,977 -1.76
Others* 1,932 2,031 5.12
Total 107,494 110,200 2.52
*Others include public lighting, mining, agriculture and export
Source: Performance and Statistical Information on Electricity Supply Industry in Malaysia by Energy Commission
Table 3: Sabah Electricity Consumption in 2015 and 2016
Total Power Consumption Total Power Consumption

Sector (kWh) 2015 (kWh) 2016 Projected Change (%)
Industrial 1,171 1,101 -5.98
Residential 1,618 1,761 8.84
Commercial 2,256 2,352 4.26
Public Lighting 64 70 9.38
Total 5,109 5,284 3.43
Source: Performance and Statistical Information on Electricity Supply Industry in Malaysia by Energy Commission
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Table 4: Sarawak Electricity Consumption in 2015 and 2016
Electricity Consumption Electricity Consumption

Sector 2015 (GWh) 2016 (GWh) Percentage Change
Residential 1,940 2,101 +8.30%
Commercial 2,390 2,513 +5.15%
Industrial 9,619 15,936 +65.67%
Public Lighting 89 77 -13.48%
Export - 693 0%
Total 14,038 21,320 +65.64%
Source: Performance and Statistical Information on Electricity Supply Industry in Malaysia 2016,
Energy Commission Malaysia
Table 5: Peak Demand in 2015 and 2016
Peak Demand Peak Demand

Region (MW) (2015) (MW) (2016)
Peninsular1
Malaysia 16,822 17,788
Sabah 2
914 945
Sarawak2 2,288 3,010
Source:
1. Malaysia Energy Statistics Handbook 2017
2. Performance and Statistical Information on Electricity Supply Industry in Malaysia by Energy Commisiion
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Figure 2: Energy Flow Chart
PRIMARY SUPPLY TRANSFORMATION
Primary Supply* Gas Plant Input

Crude Oil 24,971 27.7%
LNG 35,635
Petroleum Products & Others 4,194 4.7%
Natural Gas 39,364 43.6%
Coal and Coke 17,406 19.3% MDS 862
Hydropower 3,582 4.0%
Renewables 671 0.7%
GPP-LPG 1,826
Total 90,188 100%
Primary Production Oil Refineries Input

Crude Oil 32,440 32.2%
Natural Gas 62,119 61.7% Local 17,249
Coal and Coke 1,614 1.6%
Hydropower 3,582 3.6%
Renewables 966 1.0% Import 7,327
Total 100,721 100%
Imports Power Stations & Self Generation Input

Crude Oil & Others 8,393 18.1%
Natural Gas 16,990
Natural Gas & LNG 7,814 16.8%
Petroleum Products 14,218 30.6%
Coal and Coke 16,051 34.5% Diesel 330
Total 46,477 100%
Fuel Oil 101
Exports Coal and Coke 15,627

Crude Oil & Others 16,114 29.4%
Natural Gas 1,062 1.9% Hydro 3,582
Coal and Coke 156 0.3%
Renewables 389
LNG 27,057 49.4%
Renewables 182 0.3%
Total 54,791 100%
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FINAL USE
Gas Plant Input Final Use by Sector

Residential 3,110 6.0%
LNG 27,634
Commercial 4,449 8.6%
LPG (LNG) 49 Industry 13,989 27.0%
Transport 23,435 45.2%
Diesels 118
Agriculture 231 0.4%
Fishery 664 1.3%
Kerosene 44
Non-Energy use 5,928 11.4%
Non-Energy 262 Total 51,806 100%
LPG 1,155
Oil Refineries Output Final Use by Fuel

Natural Gas 9,566 18.5%
Petrol 5,031
Diesel 9,890 Coal and Coke 1,778 3.4%
Electricity 11,375 22.0%
Fuel Oil 1,692
Total 51,806 100%
Kerosene 6
ATF & AV GAS 2,841
Non-Energy 3,869
Refinery Gas 172
Power Stations & Self Generation Output
Thermal 11,047
Self-Generation 317
Note *: Primary Supply = Primary Production - Flaring + Imports - Exports -

Hydro 1,346 Bunkers (+-) Stock Change (+-) Statistical Discrepancy
Source: Malaysia Energy Statistics Handbook 2017
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Figure 3: Electricity Generation Mix
GWh
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Gas Oil Hydro Coal Diesel Others
1996 2016
Total: Total:
50,285GWh 156,003GWh
58.9% 18.9% 10.3% 43.5% 42.5% 13.0%

8.3% 3.2% 0.4% 0.4% 0.3% 0.3%
Source: Malaysia Energy Statistics Handbook 2017

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Figure 4: Location of Major Power Stations and Grid System in Peninsular Malaysia (2016)
Source: Performance and Statistical Information on Electricity Supply Industry in Malaysia 2016, Energy Commission Malaysia
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Figure 5: Location of Major Power Stations and Grid System in Sabah (2016)
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Figure 6: Location of Major Power Stations and Grid System in Sarawak (2016)
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Table 6: Transmission and Distribution Network in Peninsular Malaysia
TNB TRANSMISSION SYSTEM CAPACITY

Year 2015 2016
TRANSMISSION SYSTEM LINES/CABLES
500kV (km) 866 784
275kV (km) 8,028 9,518
132kV (km) 11,245 12,175
66kV (km)1 - -
TRANSMISSION SUBSTATIONS
Number 419 427
Capacity (MVA) 103,545 104,780
PERFORMANCE
System Minutes 0.64 1.43
Number of Tripping 1 9
Unsupplied Energy (MWh) 186.65 423
Notes:
1. 66kV lines amounting to 0.9km was decommissioned on 15 September, 2011
TNB DISTRIBUTION SYSTEM CAPACITY

Year 2015 2016
DISTRIBUTION SYSTEM LINES/CABLES
Overhead Lines (km) 532,403 532,403
Underground Cables (km) 697,159 697,159
DISTRIBUTION SUBSTATIONS
Number 74,417 74,417
Capacity (MVA) 131,465 131,465
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Table 7: Transmission and Distribution Network in Sabah
SESB TRANSMISSION SYSTEM CAPACITY

Year 2015 2016
275kV (km) 493 598
132kV (km) 1,921 2,075.49
66kV (km) 119 119
Number 41 42
Capacity (MVA) 4,513 4,995
PERFORMANCE
System Minutes 97.84 14.07
Unsupplied Energy (MWh) 1,364.18 232
Source:
1. Performance and Statistical Information on Electricity Supply Industry in Malaysia by Energy Commission
2. Malaysia Energy Statistics Handbook 2017
SESB DISTRIBUTION SYSTEM CAPACITY

Year 2015 2016
Underground Cables (km) 764 1,374
Number 6,762 7,382
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Table 8: Transmission and Distribution Network in Sarawak
TRANSMISSION SYSTEM CAPACITY

Year 2015 2016
500kV (km) -
275kV (km) 1,204 1,331
132kV (km) 384 388
66kV (km) - -
Number 28 30
Capacity (MVA) 10,574 7,239.6
PERFORMANCE
Unsupplied Energy (MWh) 1,176 2140
DISTRIBUTION SYSTEM CAPACITY

Year 2015 2016
Underground Cables (km) 7,688 8,122
Number 11,435 12,522
Source:
1 Performance and Statistical Information on Electricity Supply Industry in Malaysia 2015, Energy Commission Malaysia
2 Malaysia Energy Statistics Handbook 2017
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Peninsular Malaysia - TNB Generation Capacity and Market Share
The Generation Division operates and maintains TNB’s

Tenaga Nasional Berhad (TNB) is the largest electricity utility
portfolio of electricity generating assets, ensuring sufficient
in Malaysia with RM142 billion in assets. TNB is listed on the
and secure electricity supply to meet the nation’s energy
Main Board of Bursa Malaysia and employs around 35,009
needs. These are made up of thermal generation facilities
(TNB Group) to serve a customer base of 8,554,518. TNB
as well as major hydro-generation schemes in Peninsular
plays an integral role in the national, economic and social
Malaysia. The Division also provides support for the
prosperity of the country by providing reliable and efficient
operation and maintenance of six Independent Power
services.
Producers (IPPs). Figure 7 shows the major key performance
of TNB’s Generation Division
Since 1 January 2014, the Government has embarked on
the Incentive Based Regulation (IBR) framework in which
an Imbalance Cost Pass-Through (ICPT) mechanism was
Figure 7: Generation Capacity (2017)
introduced. Under the IBR, the technical, financial and
operational performance of the regulated utility will be
closely monitored by the EC. Similar mechanisms have been
adopted in other countries to ensure the sustainability and
transparency of the power sectors and to offer fair returns
to players as well as to incentivise maximum efficiency
resulting in cost-efficient tariffs for consumers. The First
regulatory period of the Incentive-Based Regulation (IBR)
was completed at the end of 2017.
The ICPT mechanism, on the other hand, has enabled TNB

to sustain a stable financial performance for the past two
years by periodically passing through the variations in fuel
and generation costs into consumers’ electricity bills. Since
March 2015, electricity consumers on the Peninsular have
been enjoying ICPT rebates in their monthly electricity
bills as a result of savings in fuel and generation costs.
Under the IBR framework, electricity tariffs consists of two
components, base tariff and the Base tariffs are set at 38.53
sen/kWh from January 2014 until December 2017, being
the first three-years of the TNB regulatory period after a
year of trial in 2014. For the second regulatory period, base
tariffs are set at 40.66 sen/kWh, whilst for ICPT, fuel and
other generation costs will be reviewed every six months
to reflect changes between the actual costs against the
forecasted cost as determined under the base tariff.
Source: TNB Annual Report 2017 and Malaysia Energy Statistics Handbook 2017 Source: TNB Annual Report 2017
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TNB’s Future Generation
One of the key components of TNB’s Future Generation developed with Sime Darby Berhad (Sime Darby). The
Sources pillar is to venture into international markets, power plants produce electricity using palm oil effluents.
balancing both conventional and renewable asset Both plants have an installed capacity of 1.6MW each and
acquisitions. In November 2016, TNB completed its are fully operational, distributing electricity directly to the
acquisition of a 30% interest in Indian power company GMR National Grid. They are also expected to pave the way for
Energy Ltd (GMR). This investment includes a balanced another four similar projects undertaken by TNB and Sime
portfolio of six operational power assets in India with a Darby. In terms of conventional capacity, Manjung 5 coal-
combined total capacity of 2,299MW. Subsequently, this fired power plant in Perak achieved its Initial Operation
acquisition has allowed TNB to establish a refurbishment Date in May 2017 and was connected to the National Grid
and maintenance facility in India, its first outside Malaysia. for the first time, before completing full commissioning
The facility will provide power plant operations and in October 2017. This ultra-supercritical plant is set to
maintenance, performance improvement, testing and generate 1,000MW of electricity at full capacity, increasing
diagnostic services. TNB believe that the partnership with TNB’s coal-fired generation capacity to almost 5,000MW.
GMR is key in enabling TNB to create a strong foothold in a This is equivalent to around 23% of the maximum demand
country with one of the highest electricity demand growth in Peninsular Malaysia.
rates globally.
Renewable Energy (RE) makes up a vital component of Figure 8: TNB Domestic Capacity Plant Up
value creation for TNB, with the goal to become the ASEAN (2017-2020)
leader in this future-ready segment. In line with this, during
2,500
the financial year TNB completed the acquisition of a 50%
share in Vortex Solar Investments Sarl. The purchase has 2,000
given TNB an operational 365MW solar PV portfolio in the 2,000
UK through Vortex Solar UK Ltd. The Vortex Solar asset
is immediately earnings accretive with 80% of revenue 1,440
1,500
under long-term, 15-year power purchase agreements
1,007.5
subsidised by Renewable Obligation Certificates for the
1,000
next 20 years. Further cementing the RE ambitions, in July
2017 TNB commenced the construction of the first Large
Scale Solar (LSS) project in Kuala Langat, Selangor. Upon 500
its completion and full operationalisation scheduled for 50
November 2018, the project will generate and transmit 0
50MW of electricity to the National Grid. 2017 2018 2019 2020
In 2017, TNB launched two biogas power plants in Source: TNB Annual Report 2017
Layang-Layang, Johor, and Bagan Datuk, Perak, co-
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As a key component of the long-term strategy, TNB will • Establishment of Force Outage Criteria
continue to invest in Renewable Energy (RE) capacity • Zero Tripping Action Plan (ZTAP)
going forward, both locally and abroad, and continue
to prepare bids for tenders in 2018 with a focus on solar The Distribution business continued to maintain its
and wind projects. TNB has already submitted bids for the distribution grid availability performance in line with
second round of Large Scale Solar PV plants locally and is world-class standards and in 2017, with SAIDI coming in at
expecting the outcome of the bids in early 2018. TNB has 50.24 minutes/customer/year. TNB achieved the highest
made bids for another large solar PV plant in the Middle distribution grid availability performance in fi¬ve years
East and is also expecting the outcome in early 2018. in Sabah, recording an improvement of 14% from 2016.
To strengthen the RE supply chain and allow TNB to explore In line with the efforts to adopt energy efficiency within
potential RE opportunities in ASEAN, TNB continues to the operations, TNB has improved energy efficiency in
strengthen relationships with ASEAN-based RE equipment six of the buildings, resulting in savings of 634 tonnes of
suppliers and players. At the same time, TNB is exploring displaced carbon dioxide. The Distribution Automation
opportunities in conventional capacity in key growth initiative started in 2014, designed to deliver improved grid
markets internationally while also focusing on generation reliability and operational efficiency. It will be completed
project delivery capability to ensure that both upcoming in 2025. Another project, the implementation of the
plants, Jimah East (2 x 1,000MW) and SPG (1,440MW) will Geospatial Information System (GIS) to help engineers
be delivered on time. manage distribution network planning, construction,
operation and maintenance, successfully completed its
3.1.3 Network Reliability Strengthened
pilot deployment.
Under transmission business, TNB continued to improve
grid reliability and performance, achieving an 84% While the grid will continue to play a key role in the delivery
reduction in Transmission System Minutes to 0.2265 of electricity, TNB foresees that its operations will evolve
minutes from 1.4720 minutes in 2016. in line with advancements in technology. This will enable
greater digitisation and automation of the grid, improving
The Grid Division has established an effective preventive the performance and reliability of grid operations and
maintenance programme. It involves carrying out delivering greater value to customers. In response to this,
maintenance work at pre-determined intervals or in TNB has already introduced smart meter/AMI facilities and
accordance with prescribed criteria as determined by the will embark on providing more digitised and automated
Original Equipment Manufacturer (OEM) using Reliability services to not only offer more value to customers, but
Centred Maintenance Methodology. Other initiatives also unlock opportunities beyond the sale of electricity.
to enhance high system reliability and availability are as
follows:- Source: TNB Annual Report 2017
• FY2015-FY2020 Refurbishment and Replacement Plan
• Reviewing Existing Maintenance Practices focusing on
risk-based maintenance
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Figure 9: TNB Operational Statistics (2017)
36.02% 42.20% 18.90% 2.88%
SALES OF Industrial Commercial Domestic Others

ELECTRICITY
(GROUP/RM MILLION) Others include Mining, Public Lighting & Agriculture, SESB, EGAT, LPL, Accured
& Imbalance Cost Pass-Through
38.51% 35.65% 22.69% 3.15%
SALES OF Industrial Commercial Domestic Others

ELECTRICITY
(GROUP/GWH) Others include Mining, Public Lighting & Agriculture, SESB, EGAT, LPL
0.32% 16.75% 81.99% 0.94%

NUMBERS OF Industrial Commercial Domestic Others
CUSTOMERS
(BY CLASSIFICATION)
Others include Mining, Public Lighting & Agriculture
Source: TNB Annual Report 2017

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Figure 10: Generation Equivalent Availability Factor (EAF) and Equivalent Unplanned Outage Factor
(EUOF) Trending
(%) Equivalent Availability Factor (EAF)

Peninsular Malaysia1
120
88.76 88.08 87.28 Sabah (SESB)
100 79 79.94 71.71
International2
80
60
40
20
0
2015 2016
(%) Equivalent Unplanned Outage Factor (EUOF)
12
Peninsular Malaysia1
10.42
10
Sabah (SESB)
8 7.22
International2
6
4.44 4.8
4 3.85
2.71
2
0
2015 2016

1 Performance of TNB’s wholly-owned power plants in Peninsular Malaysia
2 Performance of TNB’s wholly-owned power plants internationally
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Figure 11: Transmission System Minutes and Distribution SAIDI Trending
PENINSULAR MALAYSIA System Minutes (LHS) SAIDI (RHS)

Developed Countries Benchmark (System Minutes)
Developed Countries Benchmark (SAIDI)
6.0 60
System Minutes & System Average Interruption Duration Index (SAIDI)
5.0 50
49.66 49.71 50.24
4.0 40
3.0 30
2.0 20
1.0 1.47 10
0.77 0.23
0.0 0
2015 2016 2017
SABAH (SESB) System Minutes (LHS) SAIDI (RHS)

Developed Countries Benchmark (System Minutes)
Developed Countries Benchmark (SAIDI)
140.0 600
100.0 500
98.78
80.0 350.99 400
60.0 367.28 262.68 300
40.0 200
20.0 25.29 10.92 100
0.0 0
2015 2016 2017

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As TNB seeks to improve performance and productivity, TNB is pushing ahead with various digitisation and automation
initiatives throughout the value chain, such as:
1. Generation Asset Performance Management System (APMs)

2. Intelligent Predictive and Diagnostic Monitoring System (IPDM)
3. Wide Area Intelligent System (WAIS)
4. Wide Area Situational Awareness & Predictive Stability Control (WAMPAC)
5. Billing & Customer Relationship Management (BCRM)
6. Distribution Automation (DA)
7. Corporate Geographical Information System
8. Workforce Mobility Solutions
9. One Stop Service – Call Centre
TNB is confident that these initiatives, in addition to other efforts to digitise the grid, will help TNB to continuously
improve its operational excellence while enhancing cost efficiency.
Sabah – Sabah Electricity Sdn. Bhd. (SESB)
Sabah Electricity Sdn. Bhd. is an 83% owned subsidiary of TNB and 17% by the State Government of Sabah. It is a vertically
integrated utility providing electricity generation, transmission, distribution and supply services in the state of Sabah and
the Federal Territory of Labuan.
Energy Policy and Electricity Market
The Malaysian Government introduced the National Depletion Policy in 1980 to safeguard the exploitation of natural
oil reserves. With the discovery of gas in the 1970s and the declining national oil production, natural gas then became
the predominant fuel source to sustain national economic growth and as the primary fuel. With the introduction of the
Four-Fuel Diversification Policy in 1981 that listed oil, hydropower, gas and coal as key fuel sources, imported coal
began to play a more prominent role in the fuel mix for electricity generation. The Five-Fuel Diversification Policy then
succeeded this policy in 2000, with the addition of renewable energy as a fifth fuel source. All these policy initiatives were
conscious efforts by the Government to diversify the fuel sources for power generation to ensure sufficient and reliable
power at affordable prices.
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Figure 12: Overview of Sabah’s Electricity Figure 13: Generation Mix and Generation
Market Structure Share as of December 2017
Overview of the Electricity Market Structure Generation Share (by installed capacity)
Fully Integrated Multiple Generation Gas Diesel

Monopoly Single Buyer 74.1% 10.8%
MFO Other FIT
3.9% 3.3%
Generation Generation IPPs Hydro
6.2%
Transmission Transmission
The Amount of Electricity Produced

as of end 2017 is 6,001GWh (by energy generated)
Distribution Distribution
The SESB generates and contributes around 26% of

electrical energy to the existing state-wide Power Grid Gas Diesel
85.3% 3.8%
System whilst the IPPs contribute around 74% of the
MFO Other FIT
current power demand of the state of Sabah. However, the
2.7% 2.7%
SESB remains the sole supplier of electricity to consumers
Hydro
(residential, commercial and industrial).There are some 5.5%
small Independent Power Distributors purchasing bulk
power from SESB and distributing within prescribed areas
such as Kota Kinabalu Industrial Park, Sandakan Education
Hub and Asian Supply Base (in F.T. Labuan). Law and Governmental Regulation
The law governing the supply of electricity in Sabah and

F.T. Labuan is the Electricity Supply Act 1990 Act 447,
subsequent amendments in 2001, and regulations. The
electricity industry is regulated by the Energy Commission
of Malaysia which was established under the Energy
Commission Act 2001. Licensees are subjected to licence
conditions set by the regulator. All users of the power grid
are also subjected to the Grid Code for Sabah and F.T.
Labuan.
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Electricity Consumption or Demand
Table 9: Load Forecast (2017 – 2022): Table 10: Electricity Consumption Forecast (2017– 2022):
Demand Sales
FY (MW) FY (GWh)
2017 976 2017 5,300
2018 1,003 2018 5,523
2019 1,022 2019 5,690
2020 1,033 2020 5,845
2021 1,050 2021 5,995
2022 1,071 2022 6,157
Table 11: The Amount of Electricity Produced as of end 2017 is 6,001GWh
Tariff Category Rates Unit

Tariff DM – Domestic Tariff
For the first 100kWh (1-100kWh) per month 17.5 Sen/kWh
For the next 100kWh (101-200kWh) per month 18.5 Sen/kWh
For the next kWh (501-1000kWh) per month 45.0 Sen/kWh
For the next kWh (1001kWh onwards) per month 47.0 Sen/kWh
The Minimum Monthly Charge is RM5
Tariff CM1 – Low Voltage Commercial Tariff
For the first 200kWh (1-200kWh) per month 38.5 Sen/kWh
For the next kWh (201kWh onwards) per month 39.5 Sen/kWh
Tariff CM2 – Medium Voltage General Commercial Tariff
For each kilowatt of maximum demand per month 23.2 RM/kW
For all kWh
The Minimum Monthly Charge is RM1,000 32.4 Sen/kWh
Tariff CM3 – Medium Voltage Peak/Off-Peak Commercial Tariff
For each kilowatt of maximum demand per month during Peak Period 32.6 RM/kW
For all kWh during the Peak Period 32.4 Sen/kWh
For all kWh during the Off-Peak Period 19.5 Sen/kWh
The Minimum Monthly Charge is RM1,000
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Tariff Category Rates Unit

Tariff ID1 – Low Voltage Industrial Tariff
For all kWh 37.6 Sen/kWh
Tariff ID2 – Medium Voltage General Industrial Tariff
For each kilowatt of maximum demand per month 21.75 RM/kW
For all kWh 26.80 Sen/kWh
Tariff ID3 – Medium Voltage Peak/Off-Peak Industrial Tariff
For each kilowatt of maximum demand per month during Peak Period 28.00 RM/kW
For all kWh during the Peak Period 28.60 Sen/kWh
For all kWh during the Off-Peak Period 18.00 Sen/kWh
Tariff PL–Street Lighting Tariff
For all kWh (without maintenance) 20.30 Sen/kWh
For all kWh (including maintenance) 36.30 Sen/kWh

Temporary Electric Supply Tariff Category
For six months + 33%
Surcharge -
(on the total
monthly bill)
The electricity tariffs are under the purview of the Minister Sector Total Power %
of Energy, Water and Green Technology Malaysia in Consumption as of
accordance with the Electricity Supply Act section 26. A 2017 (GWh)
licensee submits its tariff review proposal to the Energy Industrial 1,055 20.41
Commission, the regulator, who will then advise the Residential 1,720 33.27
Minister on the proposed tariff review submission. The
Commercial 2,324 44.93
review proposal is tabled by the Minister to the Federal
Public Lighting 72 1.40
Cabinet for approval. Presently, the electricity tariffs in
Total 5,173 100
Sabah are very much suppressed due to the high cost of
production, and the socio political factors which influence
the tariff level setting in the state and the country as a
whole.
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Power Generation and Transmission and Distribution Sector
Table 12: A List of Major Power Plants (SESB and IPP) by Fuel Type
CY 2016 CY 2017
Installed Dependable Installed Dependable
Fuel Stations
Capacity Capacity Capacity Capacity
(MW) (MW) (MW) (MW)
GAS SESB SJ Patau-Patau 112 104.5 112 103.4
IPP Ranhill Powertron I Sdn. Bhd. 208.64 190 208.64 190
IPP Sepanggar Bay Power
113.8 100 113.8 100
Corporation Sdn. Bhd
IPP Ranhill Powertron II Sdn. Bhd. 214.8 190 214.8 190
IPP Kimanis Power Sdn. Bhd. 367.2 285 367.2 285
IPP SPR Energy Sdn. Bhd. 108.2 98.19 108.2 100
DIESEL SESB SJ Melawa 44 31.5 44 29.41
SESB SJ Batu Sapi GT 20 17.4 20 17.4
SESB SJ Labuk Canopy 8.9 8 8.9 8.55
SESB SJ Tawau 44 27 36 21.75
SESB SJ Kubota 64 64 64 64
MFO IPP Stratavest Sdn. Bhd. 64.4 0 [1]
64.4 28.59
IPP Serudong Power Sdn. Bhd. [2]
37.5 36 0 0
HYDRO SESB Hydro SJ Tenom Pangi 75 75 75 72.55
SESB Hydro SJ Merotai 1 0.8 1 0.5
SESB Hydro SJ Bombalai 1 0.8 1 0.5
SESB Hydro SJ Melangkap[3] 1 0.8 0 0
SESB Hydro SJ Sayap 1 0.8 1 1
MINI
Kadamaian 2.1 2 2.1 2
HYDRO
Pangapuyan 4.8 4.5 4.8 4.5
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CY 2016 CY 2017
Installed Dependable Installed Dependable
Fuel Stations
Capacity Capacity Capacity Capacity
(MW) (MW) (MW) (MW)
BIOMASS TSH ST 14 10 14 10
Kina BioPower 11.5 10 11.5 10
Seguntor Biopower 11.5 10 11.5 10
Cash Horse ST 12 10 12 10
BIOGASS QL Biogas [4]
- - 2.4 2
Mistral [5]
- - 3.9 3.5
TSH Biogas 3 2.7 3 2.7
Note: The list above is based on the On-Grid Major Plant in SESB, IPP and Re/FiT only (not included non-grid connection such as SESB rural
station, Solar Hybrid and Solar PV FiT).
[1] Stratavest had proposed the declaration of Dependable Capacity of the facility as Zero (0) MW from 18 August 2016
[2] PPA contract expired on 1 December 2017
[3] Not included due to long forced outage
[4] COD in 26 January 2017
[5] COD in 15 February 2017
Source: SESB
Table 13: A List of Power Grid by Major Voltage Levels
No Area PMU Name of PMU Voltage

1 PMU Kudat 132/11
2 PMU Matunggong 132/11
3 PMU Mengaris 132/11
4 PMU Kota Belud 132/33
5 PMU Tuaran 66/33/11
6 Northern PMU Dungun 132/33
7 PMU Unggun 132/33
8 PMU UMS 132/66/11
9 PMU Alam Mesra 132/33
10 PMU Tg Lipat 66/11
11 PMU Northern Town 132/11
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Table 13: A List of Power Grid by Major Voltage Levels
No Area PMU Name of PMU Voltage

12 PMU KKBU 66/11
13 PMU Kepayan 132/33
14 PMU Karamunsing 66/11
15 PMU Penampang 132/66/11
16 PMU Inanam 132/66/11
17 PMU Kolopis 275/132/33
18 PMU Papar 132/33
19 PMU Keningau 132/33/11
20 PMU Tenom Town 132/11
21 PMU TMSS 132
22 PMU Ranca-Ranca 132/33
Southern
23 PMU Beaufort 132/33
24 PMU Lok Kawi 132/33
25 PMU Minintod 132/33
26 PMU Kolombong 132/33
27 PMU Kimanis 275/132
28 PMU Lansat 132/33
29 PMU Nabawan 132/33
30 PMU Gayang 132
31 PMU Kayumadang 132
32 PMU Karambunai 132
33 PMU Melawa 66/11
34 PMU Sandakan 132/33
35 PMU Segaliud 275/132/33
36 PMU Dam Road 132
37 PMU POIC Sandakan 132/33/11
38 PMU Lahad Datu 132/11
Eastern
39 PMU Warisan 132/33
40 PMU Kunak 132/11
41 PMU Tawau 132/33
42 PMU Kalumpang 132/33
43 PMU Semporna 132/11
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Among the projects carried out at SESB:
PMU 132/33kV ELOPURA, SANDAKAN MSS 132kV TSHUN NGEN, SANDAKAN
Exterior views of the PMU 132/33/11kV Exterior views of bay MSS 132kV Tshun Ngen,
PMU ELOPURA SANDAKAN
PMU 132/33/11kV APAS, TAWAU PMU 132/33kV TAWAU
Construction works at PMU APAS Construction extension bay at PMU TAWAU

(HDD Works ongoing from PMU APAS to PMU TAWAU
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Generation, Transmission and Distribution Planning Under the SESB’s 20 Year Strategic Plan, the three
principal Key Performance Indicators (KPIs) for which the
The objective of generation expansion planning is to
Distribution Division is directly responsible are System
identify the most economical generation expansion
Average Interruption Index (SAIDI), Non-Technical Losses
scheme achieving a certain reliability level and satisfying
and Average Collection Period (ACP). Focus is given to
demand and energy requirements as forecast.
the implementation of preventive maintenance schedule
and HV system improvement projects to improve supply
The Generation Plan puts equal emphasis on natural gas,
reliability.
coal and hydro as well as renewable energy as its resources.
This is in line with the 5th Fuel Policy which was introduced
Maintenance projects implemented include:
by Malaysian Government. The natural gas is available in
• Vegetation Management for 11kV and 33kV System
the West Coast of Sabah and renewable energy and hydro
• Preventive Maintenance for VCB switchgears and
potential is available in the East and Central area of Sabah
Transformer at PMU and PPU
respectively. The use of fuel oil in Sabah power generation
• Condition Based Maintenance (CBM)
is expected to decline in parallel with the Government’s
Projects to be given priority under these initiatives are the
emphasis on reducing oil usage in the energy sector under
new feeders’ injection from PMU and PPU and creating a
the five-fuel diversification strategy.
feedback system from existing feeders.
Figure 14: Location of SESB Generation Power Plant In order to meet the projected load demand and to enable
the evacuation of power from the generation sources
to the load centres in a reliable, secure and economic
manner, the transmission plan first looks at the voltage
limit short-circuit rating profiles of the existing network,
operational issues and constraint faced in existing network
operation. It then recommends transmission expansion
schemes designed to overcome these constraints as well
as to cater for the projected increase in load demand.
The long-term transmission development plan will depend

on identified power generation sources and locations
and the implementation of a fully integrated 132/275KV
network, including the upgrading of the 66KV network on
the West Coast by 2025 to 132kV and upgrading of the
132KV network on the East Coast to 275KV and establishing
of 275KV Southern link.
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Sarawak – Sarawak Energy Berhad (Sarawak Energy)
Wholly state-owned Sarawak Energy and its subsidiaries Rural electrification in Malaysia began to accelerate in
are responsible for delivering this and are entrusted 2009 when it was made a National Key Result Area (NKRA)
with securing upstream resources, as well as planning by the Federal Department. In Sarawak, RM3.5 billion has
and building the infrastructure required for the overall been spent under the Rural Electrification Scheme (RES)
generation, transmission, distribution and retail of to electrify approximately 102,000 households up to 2016
electricity, under the guidance of the State Government and 110,000 households in about 4,000 scattered villagers
within the regulatory framework of the Ministry of Utilities. as of September 2017. Commencing 2016, Sarawak
Sarawak Energy’s business comprises three core activities, Energy raised its supervisory role in ensuring end-to-end
namely the generation of electricity and its transmission management of RES implementation. When distribution
and distribution to domestic, commercial industrial and poles and lines reach the village in the final stages of RES,
SCORE customers. The biggest transmission project Sarawak Energy arranges for internal wiring for individual
is the 500kV transmission backbone to strengthen the households so that they can be connected to the new grid
state power system reliability, and minimise the risk of promptly and safely.
power interruptions in the south of Sarawak by providing
Power Generation, Transmission and Distribution Sector
additional transmission capacity.
Despite the massive expansion efforts, Sarawak Energy’s
Energy Policy and Electricity Market
customers continue to enjoy the lowest average electricity
Energy development in Sarawak is undertaken holistically, tariffs in Malaysia and amongst the lowest in Southeast Asia.
balancing energy security, sustainability and affordability This is a direct result of the farsighted focus on renewable
to meet current and forecast demand. Each project is and affordable hydropower as the predominant part of
undertaken to deliver the ultimate objective to ensure full Sarawak’s generation mix. Thermal sources continue
access to reliable 24-hour supply for everyone in Sarawak to form part of the generation mix to provide security
and power the state’s ambition to become a developed of supply. Work is continuing on the 600MW Balingian
state by 2030 under the Sarawak Corridor of Renewable Coal-Fired Power Plant and the expansion of Bintulu’s
Energy (SCORE). Tanjung Kidurong Power Station with the addition of a
2 x 400MW Combined Cycle Gas Plant.
The State Government’s vision is to ensure all rural
communities, including the most remote and inaccessible To ensure the power is delivered to customers reliably and
upriver communities, are connected to constant 24- continuously, Sarawak Energy has invested significantly in
hour electricity supply. The focus of rural electrification transmission and distribution projects. This includes one
is to extend the grid to reachable areas while standalone of the most important State Grid infrastructure projects
systems employing alternative electricity sources are used ever undertaken – the RM2.7 billion 500kV backbone to
for regions too remote for grid connection so communities provide Sarawak with a second transmission line. This
can do away with expensive and noisy diesel generators. new grid helps to transmit electricity supply from major
generation power plants in northern Sarawak to load
centres where SCORE customers are located as well as
the densely populated southern cities of Kuching and Sibu.
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About RM300 million is spent annually to reinforce and Transmission Network Assets Detail
strengthen the distribution system which transforms high
voltage energy from the State Grid into medium-to low- Transmission Line Voltage 132kV & 275kV
voltage energy at substations before being distributed to Length of 275kV Transmission Line 1,326km
individual customers. Of the total, RM50 million is spent to Length of 132kV Transmission Line & 407km
maintain the basic substation and overhead line as well as Cable
to clear the vegetation near all these facilities. The rest of
No. of Transmission Substation 30
the allocation is used to build new distribution substations,
new lines and to upgrade heavily loaded transformers and Total Installed Transformer Capacity 7,751MVA
overhead lines. Figure shown in line route distance and the line are mostly double
circuits
Figure 15: Capacity Mix (%) of Sarawak

Lighting up Rural Sarawak
In 2009, the overall state domestic coverage was 79%

Main Grid Net Generation
with rural population electricity coverage at only 56%.
Energy Mix Generation Mix %
Today, the rural population electricity coverage is about
2017 GWh
90%, increasing the overall coverage to about 95%. This
Hydro 19,242 77 rapid growth was made possible due to the concerted
Coal 2,845 11 effort, cooperation and commitment to provide electricity
Gas 2,862 11 to all Sarawakians by the relevant agencies. The State
Government’s vision is to ensure all rural communities
Diesel 162 1
including the most remote and inaccessible upriver
Source: Sarawak Energy
communities are connected to constant 24-hour
electricity supply. The focus of rural electrification is
to extend the grid to reachable areas while standalone
The transmission grid connects the power plants such as
systems employing alternative electricity sources are used
Murum HEP and Bakun HEP with large demand centres
for regions too remote for grid connection so communities
such as Kuching and Samalaju. By 2017, the existing
can do away with expensive and noisy diesel generators.
275kV transmission grid will be further reinforced by the
all-new 500kV Backbone Transmission Grid, a massive
Rural electrification in Malaysia began to accelerate in
state infrastructure project which runs for over 500km
2009 when it was made a National Key Result Area (NKRA)
from Similajau to Tondong in Kuching Division. This
by the Federal Department. In Sarawak, RM3.5 billion has
RM2.7 billion investment will strengthen the state power
been spent under the Rural Electrification Scheme (RES)
system reliability and resolve existing or anticipated
to electrify approximately 102,000 households up to 2016
constraints, doubling the capacity of the transmission
and 110,000 households in about 4,000 scattered villagers
network and massively increasing system reliability. The
as of September 2017. Commencing 2016, Sarawak
state transmission grid will also be extended to Lawas
Energy raised its supervisory role in ensuring end-to-end
District, an important border zone poised for rapid
management of RES implementation. When distribution
economic growth.
poles and lines reach the village in the final stages of RES,
Sarawak Energy arranges for internal wiring for individual
households so that they can be connected to the new grid
promptly and safely.
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Regional Powerhouse transmission interconnection framework for long-term

power transmission from Sarawak to West Kalimantan.
At 11kV distribution level, the first Sarawak – West
Kalimantan inter-connection project was successfully
This cross-border interconnection and the concomitant
commissioned and energised, through its border villages
electricity export to West Kalimantan will need the
Sajingan in Indonesia and Kampung Biawak in Lundu
installation of a new 275kV line between the existing
District of Sarawak on 23 January 2009. Another successful
Mambong 275kV substation in Kuching and a new
cross border interconnection project is from Lubok Antu
275/150kV substation in Bengkayang, West Kalimantan. The
to Badau. The Sarawak - West Kalimantan Interconnection
275kV transmission line with a total length of 128.2km runs
Project is part of the efforts by the ASEAN utilities and
45.6km from Mambong substation to the Sarawak/West
the first BIMP-EAGA PEIC project to interconnect the
Kalimantan border and from there on West Kalimantan
electricity systems in the region where feasible. The
territory for another 82.6km to the site of Bengkayang
Head of Agreement (HOA) was signed between Sarawak
substation. The first circuit was energised in January 2016
Energy and PLN on 19 February 2009 for the Sarawak -
and the power began to flow between the two countries.
West Kalimantan power system interconnection and there
Other potential interconnections which are still under
will be a joint collaboration between the two utilities to
study are interconnections with Brunei Darussalam from
undertake the feasibility studies to determine the 275kV
Tudan substation in Miri.
4 Building a Sustainable Future
Peninsular Malaysia – TNB
Sustainable Governance (LOA) guidelines. TNB continuously reviews its governance

structures and updates its controls and policies to ensure
Sustainability is embedded in the company policies
compliance with regulations, making sure they are relevant
and is inextricably linked with our business strategy and
and allow for best practices in the company.
decisions. It influences investments, operational efficiency
programme, stakeholder engagement and climate risk Embracing Renewable Energy
mitigation efforts, among others. Sustainability initiatives
come under the purview of the Sustainability Development Together with the Sustainable Energy Development
Committee (SDC) and TNB Leadership Group (TLG), Authority (SEDA), TNB administers and manages the
comprising Management executives and chaired by the implementation of the Feed-in-Tariff (FIT) programme that
President/CEO. Their key roles are to review, challenge, is mandated under the Renewable Energy Act 2011. This
evaluate and advise on initiatives related to ‘Sustainability programme pays Feed-in Approval Holders (FiAH) a fixed
and Green Energy’ projects to be implemented by TNB, price for their electricity as a pioneering incentive. This has
prior to further review from other prerogative committees led to the commissioning of 7,367 FIT projects in Peninsular
including the Board of Directors. Decisions to escalate Malaysia with an installed capacity of 379.4MW as of July
issues to higher approving authorities are dependent on 2017. As the solar PV quota under the FIT programme is
the Procurement & Policy as well as Limit of Authority reaching its limit for customers, the Government has
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introduced the Net Energy Metering (NEM) programme. in renewables. In anticipation of this drive for RE, TNB
Under this programme, customers can install rooftop solar previously entered into joint ventures with plantation
PV systems for their own electricity consumption and sell giants, Felda and Sime Darby Berhad, to set up a pilot
any excess electricity to TNB. The NEM target is to achieve biomass and a biogas plant, respectively. TNB is confident
500MW of installed capacity from 2016 to 2020 (450MW of their performances and looks forward to expand beyond
from Peninsular Malaysia and 50MW from Sabah). these ventures going forward. TNB, via its subsidiary TNB
Energy Services (TNBES), has also implemented various
This translates to an NEM quota of 90MW per year for low carbon projects notably TNB-Felda FTJ 10MW project
Peninsular Malaysia in the period of 2016 to 2020. The in Jengka, solar solution provider and energy efficiency
initiatives are to promote the use of renewable energy services.
including the joint venture (JV) with Sime Darby Plantation
to develop two biogas power plants located in Layang- Further cementing its RE ambitions, in July 2017, TNB
Layang, Johor and Bagan Datuk, Perak. Both plants commenced the construction of its first Large Scale Solar
commenced commercial operations in December 2016 (LSS) project in Kuala Langat, Selangor. Upon its completion
and January 2017, respectively. TNB also formed a JV with and full operationalisation scheduled for November 2018,
Felda Global Ventures Holdings Berhad to build a biomass the project will generate and transmit 50MW of electricity
power plant in Jengka, Pahang which was commissioned to the National Grid. TNB will also aggressively expand its
in October 2016 with a generating capacity of 10MW. TNB global footprint under this key pillar. This will be achieved
manage 19 mini hydropower stations with a capacity of by building up businesses in Southeast Asia, South Asia
9MW as a whole, located in several rivers in Peninsular and the Middle East with the aim of generating a healthy
Malaysia. Recently, TNB was awarded a contract by return on international investment. TNB aspires to have
the Energy Commission to develop the first Large Scale international investments account for 20% of its earnings
Solar plant. by 2025.
Future Generation Sources Notes:

1 TNB has to-date delivered and continues to maintain eight solar
The Future Generation Sources pillar is underscored hybrid stations generating a total of 195kWp
by TNB’s commitment to driving the use of Renewable 2 Currently TNB is operating more than 19 mini “run of the river” hydro
Energy (RE) as TNB aspires to be the ASEAN leader in stations with a combined capacity of more than 9MW
renewables. This will be driven by RE initiatives undertaken 3 With installed capacity of 326.05MW
in agreement with the Malaysian Government. As part of

this plan, TNB aspires to deliver most of Malaysia’s RE by
investing in solar, wind, biomass, biogas and mini hydro
projects as it builds on TNB’s current experience in RE.
TNB believes the knowledge and experience from its various

community grid solar projects1, and mini hydropower
projects2, in addition to the 5,777 RE projects3 in Peninsular
Malaysia that TNB as the off taker has commissioned
under the FIT programme, will put it in good stead to take
advantage of the upcoming burgeoning opportunities
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Sabah – Sabah Electricity Sdn. Bhd. (SESB)
To support the development of renewable energy (RE), the Government has enacted several policies and laws, which are
the National Renewable Energy Policy and Action Plan 2009, the Renewable Energy Act 2011 and the Sustainable Energy
Development Authority Act 2011. The purpose of these policies and laws are summarised in the table below:
Policies and Law Objectives

National Renewable Energy Policy and Action Plan 2009 Enhancing the utilisation of indigenous renewable
energy (RE) resources to contribute towards national
electricity supply security and sustainable socioeconomic
development. The Objectives:
• To increase RE contribution in the national power
generation mix;
• To facilitate the growth of the RE industry;
• To ensure reasonable RE generation costs;
• To conserve the environment for future generations;
and
• To enhance awareness on the role and importance of RE
Renewable Energy Act 2011 An Act to provide for the establishment and implementation
of a special tariff system (ie Feed-in-Tariff) to catalyse the
generation of renewable energy and to provide for related
matters.
Sustainable Energy Development Authority Act 2011 An Act to provide for the establishment of the Sustainable
Energy Development Authority of Malaysia (SEDA) and
to provide for its functions and powers and for related
matters.
The Feed-in-Tariff (FIT) programme is a mechanism that allows electricity that is produced from indigenous RE resources
to be sold to power utilities at a fixed premium price and for specific duration governed by the Renewable Energy Act
2011 commencing 1 December 2011. The implementation agency for the FIT programme is the Sustainable Energy
Development Authority (SEDA). Starting 1 January 2014, RE developers in Sabah and Federal Territory Labuan are eligible
to apply for participation in the FIT Programme. Collectively, the FIT incentives as well as enormous RE potential in
Sabah are designed to be the impetus for RE developers to contribute to the state’s electricity generation. Currently,
approximately more than 5% of Sabah generation mix comes from RE such as biomass, biogas, mini hydro and solar PV.
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Generation
No Type CY2017 Energy Production (MWh) Mix (%)
1 Biomass 117,795.96 55.28%
2 Biogas 44,201.96 20.74%
3 Hydro 12,155.53 5.70%
4 Solar 38,929.73 18.27%
Note: CY2017 indicates the period from 1 January 2017 to 31 December 2017
SESB initially planned to construct a 175MW hydropower storage scheme at Liwagu Basin called the Liwagu Hydroelectric
Project but the project was cancelled in 2010 by the government due to high social impact of requiring the settlement of
over 2,400 people in the reservoir area and the inundation of a Kadazan-Dusun cultural heritage site. SESB is now looking
at a run of river schemes in the basin in place of this large storage scheme with plans to conduct feasibility studies at
selected sites. In Padas Basin, SESB is in the advanced stage of an engineering study of the Upper Padas Hydroelectric
Project. This project is a storage scheme with a 6km2 reservoir and has the potential to produce of 180MW power.
If the project proceeds, the reservoir would eventually inundate 6km2 of secondary forests. The Sabah Forestry Department,
has in principle given SESB the approval to proceed with the project with several conditions, one of which is to preserve
the sustainability of the forest based on the concept of “no net loss” or “bio-diversity off sets”, whereby SESB is required
to finance the establishment of new forest in place of the reservoir. The project was also required by the Department
of Irrigation and Drainage to maintain a minimum environmental release after the dam to preserve the ecology of the
riverine system based on internationally accepted environmental practice which is a release of a minimum 95% of the
exceedance flow equivalent to 12m3/s (the average flow is 75m3/s at the dam location).
Below are SESB’s strategic plans to reduce the greenhouse gas emissions:
• Decommissioning of inefficient and old Grid Connected Oil Based Power Plants (ongoing)
• Commissioning of more efficient gas plants (ongoing)
• Development of RE plants under Feed-in Tariff (FIT) (after 2013)
• Development of Sabah Hydro Resources with total potential of 535MW
• Interconnection with neighbouring state/country for better utilisation efficiency (after 2017)
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4.3 Sarawak – Sarawak Energy Berhad (Sarawak Energy)
As Sarawak’s primary energy company, Sarawak Energy is aware of its impact on the environment, and of how it may
influence the state’s natural resources and landscape for the better. In view of this, Sarawak Energy’s sustainability
activities are deeply rooted into its daily operations as it seeks to mitigate climate change while improving environmental
outcomes for the benefit of all stakeholders. With energy generation making up the core of its business, Sarawak Energy
is tremendously proud of the progress it has achieved in promoting renewable energy. This has resulted in a declining
trend in the long-term CO2 emission intensity reduction from 2010 – 2015. Sarawak Energy has successfully recorded
the following trend in its CO2 emission intensity reductions from 2010 – 2015, as shown below:
Figure 16: Sarawak Energy Main Grid Emission Intensity
OUR PERFORMANCE
Sarawak Energy Main Grid CO2 Emission Intensity
2010-2016 (tCO2eq/MWh)
0.800
0.700 0.724
0.698
0.600
0.541
0.500
0.400 0.430
0.300 0.3352
0.3161
0.200 0.237
0.100
0.000
2010 2011 2012 2013 2014 2015 2016
Notes:
1 This grid carbon emission intensity data has assured by a third party for Sustainability Report 2014.
2 This grid carbon emission intensity data has assured by a third party for Sustainability Report 2015.
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5 Latest Development and Deployment of New Technologies
Peninsular Malaysia – TNB
Grid of the Future – AMI Malaysian Electricity Supply Industries Trust Account
(MESITA). All domestic customers can utilise personalised
To support the Grid of the Future (GoTF) initiative, the
web tools through the myTNB web portal that provides
Distribution Division has embarked on several key projects
information about energy usage, allowing for more
such as Advanced Metering Infrastructure (AMI), Mobility
accurate and personalised analysis.
Solutions, Volt-VAr Optimisation (VVO), Geospatial
Information System (GIS) and Distribution Automation (DA). Behavioural Time of Use (TOU) Pilot Project
These GoTF projects represent a new and broader approach
This project was recommended by the Government to
to improve reliability, service quality and operational
conduct a behavioural study and test for the introduction
efficiency. AMI’s main objective is to improve meter
of TOU service for 1,000 AMI pilot customers in Melaka and
reading by introducing remote and automatic readings,
Putrajaya. It involves the study and analysis of key factors
consequently reducing time and manpower resources.
contributing to customer behavioural change, as well as
Mobility Solutions provide a platform for work efficiency
the economic and environmental impact of TOU service
amongst field staff. VVO improves electricity supply quality
offerings in Malaysia Electricity Supply Industry (MESI).
while GIS provides near-real-time information on TNB’s
distribution network. DA provides real-time management
Customers are encouraged to shift energy usage from
on network operations and we intend to equip substations
peak periods to off-peak periods, where energy cost is
and feeders with this facility in the near future.
relatively low. By shifting energy consumption, customers
will be able to get some savings in their energy bills. This
Home Energy Report (HER) Programme project will enable TNB and MESI to analyse customer
behaviour with regards to TOU pricing signals and changes
TNB continues to empower customers to reduce their
in energy consumption pattern enabled by TOU offerings.
energy consumption through the HER programme. In
This will provide insights into the economical, technical
this programme, TNB provides them with personalised
and environmental impact of TOU services/option to
reports that contain detailed information on how their
customers, TNB, MESI and the country, thus paving the
consumption compares to other similar efficient homes.
way for future TOU tariff option implementation.
The programme aims to reduce energy consumption,
increase customer satisfaction and digital activity while
building a larger knowledge base about TNB customers.
Subsequent to the pilot programme, phase 2 of HER was
launched in October 2017. Phase 2 of HER programme
is jointly funded by both TNB and KeTTHA under the
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Kedai Tenaga Enhancements Sharing of SESB Experiences
TNB has introduced multiservice counters in the retail Improving Supply Security
outlets (“Kedai Tenaga”) to reduce customer waiting
times. These enhanced service counters have provided The total installed capacity for Sabah as of December 2017
several options for customers to pay their bills or perform is 1,505.14MW (SESB 362.9MW and IPP 1142.24MW) and the
other services at Kedai Tenaga. Additionally, 124 payment highest maximum demand ever recorded throughout the
kiosks have been put in place at Kedai Tenaga throughout state was 944.5MW as of 31 December 2017 occurred on
Peninsular Malaysia. These facilities provide greater 25 April 2016. However, it is projected that the maximum
convenience for customers to carry out transactions, even demand will reached 976MW by end of 2017 and projected
after office hours. Through the implementation of these to reach 1,143MW by 2025.
enhancements, a reduction in the time taken in order to
serve customers at Kedai Tenaga to eight minutes, has SESB’s short- and medium-term Generation Planting Up
been recorded. Programme focuses on improving the Reserve Margin
especially on the East Coast of Sabah. Listed below are
Sabah – Sabah Electricity Sdn. Bhd. (SESB) the short- and medium-term initiatives proposed to be
implemented in order to increase the Reserve Margin as
Latest Development and Deployment of New Technologies well as the reliability level of the generation system on the
East Coast of Sabah:-
SESB has embarked on the IEC-61850 standard for
communication protocol to ensure interoperability of
I. The development of RE resources in Sabah, which
devices from multiple manufacturers. In view of the
includes the construction of power plant using
increasing complexities of the grid system with more
renewable energy resources as fuel such as biomass,
distributed generation and renewable energy sources, as
biogas, geothermal and solar with the implementation
well as the need to cater for distribution automation in
of the Feed In Tariff (FIT) scheme.
the near future, SESB has been seriously looking into the
selective implementation of smart grid. Presently some
II. Relocation of SESB Strategic Generation Fleet to the
smart meters are already installed mainly for large power
East Coast of Sabah to boost up East Coast Generation
consumers which have the capability to implement time
Capacity in the short term.
of use tariff, real time load profiling and remote reading if
required.
III. Implementation of new Generation Projects involving
the repowering project at Lahad Datu & Sandakan
which will support the Generation System on the East
Coast of Sabah in stages by 2018-2019.
V. Development of new 300MW Combined Cycle Gas

Turbine IPP projects on the East Coast of Sabah which
will operate as an anchor plant and is expected to be
commissioned in stages by post 2020.
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C EPS I 2018
Reinforcement of the Electricity Supply Network
Under the 9th Malaysia Plan, the Federal Government allocated RM600 million to implement 23 projects to strengthen
electricity supply, mainly the transmission and distribution system in Sabah. Among the major projects completed was the
Sabah East West Grid Interconnection which was commissioned on 28 July 2007. This interconnection project allows an
average transfer of 70MW to 90MW of power from the West Coast of Sabah to the East Coast to mitigate the insufficient
generating capacity in the east coast area.
SESB’s immediate plan for transmission development focuses on the reinforcement of the existing transmission and
distribution systems to enhance system supply stability and reliability as well as to cater for the projected increase in load
demand in Sabah. The long-term transmission plan depends on identified power generation sources and locations, and
the implementation of a fully integrated 275kV ring network, (including upgrading the 132kV network on the East Coast
to 275kV and establishing the 275kV Southern Link), as the backbone in Sabah and to be ready for interconnection to
neighbouring Sarawak and Brunei.
With the support from the Government, SESB aims to achieve 95% electrification coverage by year 2013 to enable
more people in Sabah to enjoy the benefits of electricity supply, as a part of SESB’s contribution to the socioeconomic
development of Sabah. The Federal Government continues to provide financial assistance to SESB to implement various
initiatives to improve its system. Sabah’s SAIDI has shown tremendous improvement; a decrease of more than ten-fold,
from 4,030 mins/customer/year in 2006 to only 557 mins/customer/year in 2012. Furthermore, SESB received substantial
diesel and medium fuel oil subsidies from the Malaysian Government.
236
PEOPLE’S
C EPS I 2018
REPUBLIC
OF CHINA
Capital: Population: Installed Capacity:
Beijing 1.390
billion
1,780 GW
Area: Percentage of Population
9,600,000 Yuan
Currency: Electrified:
km2 N/A
Renminbi
(RMB)
237
C EPS I 2018
Table 1: Total Power Consumed by Sector
Total Power Consumption Projected Change (%) Projected Power Consumption

Sector as of 2017(MWh) (Year 2017/Year 2018) as of end 2017 (MWh)
Agricultural 0.12 billion - -
Industrial 4.4 billion - -
Residential 0.87 billion - -
Commercial
0.88 billion - -
(Tertiary Industry)
TOTAL 6.3 billion - About 6.65 billion
Energy Policy
The 13th Five-Year Plan for Electricity Power Development b) Overall targets
is as follows: Accelerating adjustment, optimisation, restructure and
upgrade, building a modern power industry system
a) Guiding principles that is clean, low carbon, safe and efficient. Benefitting
Focusing on power restructure, generation allocation the general customers, providing strong support for
and distribution network upgrading; focusing on the construction of an affluent society.
network regulation capacity, energy efficiency and
power system reform; enhancing coordination, c) Principles
technology and innovation, and international Coordinating an overall plan; green and clean
cooperation. development; optimise allocation for safety
development; smart, efficient and innovative
development; further reform and opening up; support
people’s livelihoods.
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C EPS I 2018
d) Targets Comprehensive adjustment capacity

Pumped storage capacity did not reach 40GW by 2015,
Generation capacity to build 5GW of new single-cycle peak load regulation
To reach 2TW, to satisfy the need of 6.8-7.2 trillion gas-fired capacity, flexibility remodel for heat and
KWh, power consumption per capita close to the power cogeneration and for conventional coal-fired
level of medium-developed countries; proportion of power to reach 133GW and 86GW respectively; to
electricity in energy end use to reach 27%. control wind and solar curtailment under reasonable
levels.
Generation capacity mix
Non-fossil fuel to reach 39%; to lower coal-fired Energy saving and emissions control
capacity to 55%. Strive to eliminate over 20GW of backward thermal
power capacity; qualified coal-fired power units to
Grid development reach extra low emission standard.
To build new capacity of West-East transmission
of 130GW so that it reaches 270GW by 2020; to Guarantee people’s livelihoods
further optimise the regional backbone grid and New generation of electricity replacement to reach
enhance inter-provincial connection, to coordinate 450TWh.
transmission from resource concentrated properly
and ensure safe operation; to complete distribution
network construction and rural distribution network
remodel and to basically complete a modern
distribution network that is urban-rural coordinated
and meets the needs of a well-off society.
Market competition has been introduced to the field of power generation. The power generation market concentration
in China is growing. The installed capacity of five big state-owned generation enterprises under the central government
account for 42.3% of the national total installed capacity. Power grids in China are fully owned and operated by state-
owned grid companies, including the State Grid Corporation of China (SGCC) and China Southern Power Grid Company
(CSG) and some local grid companies. There has been pilot reform in various provinces, municipals and regions on
comprehensive reform, transmission and distribution, sales and trading systems.
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C EPS I 2018
a) Electric Power Law of the People’s Republic of China, amended and published in 2015.
b) National Security Law of the People’s Republic of China.
c) Law on the Prevention and Control of Atmospheric Pollution of the People’s Republic of China.
d) Energy Conservation Law of the People’s Republic of China.
e) Environmental Protection Law of the People’s Republic of China.
f) Law on Environment Impact Assessment of the People’s Republic of China.
g) Renewable Energy Law of the People’s Republic of China.
h) Basic Operating Rules for the Electric Power Market.
i) Several Opinions on the Further Deepening of Electric Power System, published by the State Council in 2015.
Tariff Structure
Pricing policies published in 2016
a) Reducing coal-fired Feed-in Tariff (FIT) and price for industrial and commercial customers:
An average RMB3 cents/KWh decrease for both coal-fired power FIT and general industrial and commercial sales
price; price for large industrial customers remains the same, starting from 1 January 2016.
b) Perfecting the mode of execution for electricity pricing:

Pricing method option change cycle moderated from yearly to quarterly; maximum capacity change cycle for those
who pay by maximum capacity need moderated from semi-annual to monthly.
c) Adjusting concentrated solar power (CSP) benchmark FIT:

National benchmark FIT for CSP projects commissioned before 31 December 2018 is RMB1.15/KWh.
d) Increasing the levy standard for renewable energy development fund:

Starting from 1 January 2016, the levy standard for total power sales, except for residential use and agricultural
production, should be increased from RMB1.5 cent/KWh to RMB1.0 cent/KWh in all provinces (excluding Xinjiang
and Tibet).
e) Adjusting PV and on-shore wind benchmark FIT:

To reduce the benchmark FIT for PV power constructed after 1 January 2017 and approved after 1 January 2018;
encouraging the pricing of PV, on-shore and off-shore wind through competition, but the price should not be higher
than the benchmark regulated by the government.
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C EPS I 2018
Total Amount of Energy Consumption by Sectors
Total Power Consumption Percentage in total

Sector as of 2016 (MWh) (%)
Primary Industry 109.2 million 1.8
Secondary Industry 4,261.5 million 71.3
Tertiary Industry 797.0 million 13.3
Residential 807.1 million 13.5
Total 5,974.7 million 100
Total Installed Capacity of Generation by Fuel Types, Including Total Installed Capacity of Generation and Total
Production by Fuel Types
Fuel type Installed capacity (GW) Production (TWh)

Hydro 332.07 1,174.8
Thermal 1,060.94 4,227.3
Nuclear 33.64 213.2
Integrated wind 147.47 240.9
Integrated solar 147.47 66.5
Total 1,650.51 6,022.8
Production of Renewable from Various Resources
Fuel type Production (TWh)

Hydro 1,174.8
Integrated wind 240.9
Integrated solar 66.5
24 1
C EPS I 2018
5 Latest Technologies or Innovations Deployed by the Utilities
a) Generation b) Grid
Hydropower Ultra High Voltage (UHV)
• Temperature control and crack control of high • ±1,100kV Zhundong-Wannan UHV DC
strength bulk concrete. transmission project.
• United dispatch operation technology of cascade • ±800kV UHV DC transmission converter valve key
hydropower plants. technologies and application.
• Deep, long and large tunnel engineering
technology. Flexible DC technology
• Corollary equipment and system integration • Extra large capacity insulated gate bipolar
technology of large-scale pump-storage units. transistor (IGBT) key technologies.
• Silicon carbide (SiC) technologies.
Thermal power • ±500kV DC cable key technologies.
• Optimised extra low emission technology.
• New developments in secondary reheat Distributed energy integration
technology in coal-fired power. Grid security and control technologies
• Research and innovation on the flexibility remodel • Grid security control and protection technologies.
on thermal power units. • Large grid safe and stable operation technologies.
Nuclear Distribution network automation technologies

• World advanced third generation nuclear • Optimised planning for smart distribution network.
technology. • Distribution network reliability technologies.
• Modularised small reactor has become a milestone
for small reactor in the world.
• An important step towards the independent
design and manufacturing of advanced nuclear
fuel components.
Non-hydro renewables
• Advanced technology of off-shore wind power.
• Breakthrough in low speed wind turbine.
• New technologies on power storage towards
large capacity equipment.
• Breakthroughs in system integration technology
and operation technology in CSP.
• Floating PV power plant commissioned.
242
PHILIPPINES C EPS I 2018
Manila USD313.42 22,262

billion2 MW3
Area:
300,000 Philippine
Currency: Percentage of
Population Electrified:
km2
peso (PhP) 99.99%
Population:
104.9
1 Population: 104.9 million (Reference: 2017 Fact Sheet on Men and Women, Philippine
Statistics Authority, http://www.psa.gov.ph/sites/default/files/2017%20FactSheet%20
Women%20and%20Men_rev%20April2017_0.xls)
million1 2 GDP: USD313.42 billion (Reference: Fourth Quarter and Annual 2017 National Income
Accounts, Gross Domestic Product at current prices, Philippine Statistics Authority.
http://psa.gov.ph/system/files/1Q4-Rev_Summary_93SNA.xls Translated to USD using
2017 average exchange rate of PhP50.4037:USD1 from the Bankgo Sentral ng Pilipinas,
http://www.bsp.gov.ph/statistics/spei_new/tab12_pus.htm)
3 Installed Capacity: 22,262MW, does not include off-grid areas (Reference: 2017 Installed
and Dependable Capacity, Department of Energy,
https://www.doe.gov.ph/sites/default/files/pdf/electric_power/installed_dependable_
capacity_mix_grid_december_2017.pdf)
On population and GDP, please note that they are still preliminary figures since the
official National Income Accounts for 2017 will be released on 12 April.
24 3
C EPS I 2018
Installed Generating Capacity
The Philippines’ total installed generating capacity was 22,728MW in 2017, about 69% of it was located in Luzon and
almost one-third, or 31%, came from renewable energy.
Table 1: Installed Generating Capacity per Grid in MW 2017
Fuel Type Luzon Visayas Mindanao Total

Coal 5,625 1,054 1,370 8,049
Oil-based 2,518 730 906 4,153
Natural Gas 3,446 1 - 3,447
Geothermal 843 965 108 1,916
Hydro 2,527 20 1,080 3,627
Biomass 87 101 36 224
Solar 362 465 59 885
Wind 337 90 - 427
Total 15,743 3,425 3,559 22,728
Figure 1: Installed Generating Capacity by Fuel Source (in MW) 2017
Natural Gas
15%
Hydro
16%
Oil based
18%
Biomass
1%
Renewable
Energy
31% Solar
4%
Coal
36%
Wind
2%
Geothermal
Source:
8%
4 Philippine Power Statistics. Department of Energy.
Retrieved from https://www.doe.gov.ph/philippine-power-statistics
244
C EPS I 2018
Power Consumption by Sector
Table 2: Total Amount of Energy Consumption by Sector
2016 (MWh)5 Projected G.R. % 2017 (MWh)

Residential 25,631 4.9% 26,896
Commercial 21,770 5.6% 22,979
Industrial 24,117 4.3% 25,145
Others 6
2,634 7.5% 2,832
Total 74,153 5.0% 77,853
Source:
5
Philippine Power Statistics. Department of Energy. Retrieved from https://www.doe.gov.ph/philippine-power-statistics
6
Others includes public buildings, street lights, irrigation, energy recovered and others not elsewhere classified
* Assumed growth rate based on 10-year CAGR
The Department of Energy (DOE) aims to achieve the following for the Philippine electric power industry by 2040:
a) Ensure the quality, reliability, affordability and security of supply
b) Expand access to electricity
c) Ensure a transparent and fair playing field in the power industry
In view of these objectives, the DOE prepared the electric power industry roadmap for the period of 2017 to 2040 to
strengthen its initiatives in generation, transmission, distribution, retail supply, market development, institutional and
support mechanism, missionary electrification, and the Household Electrification Development Plan (HEDP).7
Source:
7 Electric Power Industry Roadmap 2017-2040. Department of Energy. Retrieved from https://www.doe.gov.ph/pep/electric-power-industry
roadmap-2017-2040
24 5
C EPS I 2018
Figure 2: Electric Power Industry Roadmap 2017-2040
OVERALL
ELECTRIC POWER INDUSTRY OBJECTIVE
BY 2040
SHORT-TERM MEDIUM-TERM LONG-TERM
• ENSURE A TRANSPARENT AND FAIR PLAYING FIELD IN THE POWER INDUSTRY

(2017-2018) (2019-2022) (2023-2040)
• Facilitate the declaration of power Pursue the entry of new and

projects as Project of National emerging technologies for power
• ENSURE QUALITY, RELIABLE, AFFORDABLE AND SECURE SUPPLY

Significance generation (e.g. ocean, fuel cells,
o Exemption from real property nuclear, etc.) consistent with the
tax and local taxes power mix policy.
o Express grant of business permit
and licences to operate
• Institute power mix policy for
power generation towards
optimal* portfolio to meet 24/7
GENERATION
electricity demand and reserve

requirements with spatial and
• EXPAND ACCESS TO ELECTRICITY

sectoral dimension
• Lead in the plant performance assessment/benchmarking in order to review

and develop policies to improve power generation
• Encourage compliance to international standards for constructing power
plants and accreditation of contractors
• Review and develop power generation related policies
• Develop resiliency policies for generating assets
• Conduct daily monitoring of power situation
• Periodic monitoring of power generation projects
• Provision of technical support
246
C EPS I 2018
Figure 3: Electric Power Industry Roadmap 2017-2040 (con’t)
OVERALL
BY 2040

(2017-2018) (2019-2022) (2023-2040)

• Facilitate timely completion of transmission Monitor interconnection
projects schedule of the Visayas
• Enhance rules and procedures in the conduct and Mindanao Grids by
of Transmission System Impact Studies (SIS) 2020 and other islands.

• Provide guide for investors in power
generation siting through enhanced and
responsive Transmission Development Plans
(TDP)
• Facilitate interconnection of the three major
grids – Luzon, Visayas, and Mindanao (Leyte-
TRANSMISSION
Mindanao Interconnection Project) and

interconnect in the main grids, emergent
Island-grids (e.g. Mindoro)
• Develop policies towards adequate contracted

capacities for reserves
• Lead in the transmission performance
assessment/benchmarking in order to review
and develop policies to improve transmission
• Monitor compliance with the TDP

• Continue implement transmission system upgrades and expansion
programme (compliance to N-1, Contingency and Load Growth)
• Increase transmission backbones and alternative transmission corridors
• Interconnect Mindoro Island to Luzon grid
• Develop resiliency policies for transmission facilities
24 7
C EPS I 2018
OVERALL
BY 2040

(2017-2018) (2019-2022) (2023-2040)
• Facilitate timely implementation of necessary distribution facilities

• Enhance Distribution Development Plan (DDP) towards operational and institutional

efficiency
• Facilitate economies of scale in the distribution utilities’ operation
• Provide policy and regulatory support to new and emerging needs of the consumers
• Improve transparency mechanism in rates and charges
• Ensure adequate power supply contracts and reserves to serve captive market through
DISTRIBUTION

open and competitive processes
• Enhance power supply contracts to include among others replacement power and
penalty provisions
• Performance assessment/benchmarking
• Process direct connection application
• Develop and monitor accountability of DUs
• Continue to implement distribution line upgrades and expansion programmes for better
services at the least cost to consumers
• Continue improvement in operational efficiency and good governance in the operations
and management of distribution utilities
• Develop resiliency policies for distribution facilities
Develop policies to facilitate: Formulate Supply Development Plan

• Mandatory Contestability for 1MW and up for integration in the PDP
electricity end-users Develop policies to facilitate:
• Full open access for 750kW and above • Open access for 500kW and
Contestable Customers below
SUPPLY
• Retail aggregation for minimum of 750kW • Retail aggregation for minimum

aggregated demand aggregated demand of 500kW
• Conduct market studies for lowering
contestability to 500kW
• Increase transparency in the retail supply contracting

• Develop policies on the implementation of RCOA in Mindanao by 2018
248
C EPS I 2018
OVERALL
BY 2040

(2017-2018) (2019-2022) (2023-2040)
Develop policies and monitor compliance on:

• WESM design improvements/NMMS

• Appoint Independent Market Operator (IMO)
• Privatisation of NPC assests
MARKET DEVELOPMENT
• Policy for embedded generators

• Establishment of Mindanao electricity market

• Develop roadmap, policy utilisation for smart grid and other
technologies
• Renewable energy market (in line with RPS implementation)
• Reserve/energy market co-optimisation
• Demand bidding in the WESM
• Forwards market/financial transmission right/day-ahead market/
derivatives market
• Continue policy development to enhance electricity market

• Intensify Information, Education and Communication (IEC) campaign
• Conduct periodic market operations audit and metering service provider
SUPPORT MECHANISM
INSTITUTIONAL AND
review
• Conduct WESM rules, market annual and retail rules review
• Establish and maintain DOE Electric Power Database Management System
• Monitor compliance to WESM rules
• Prepare and submit semi-annual EPIRA status report to JCPC
• Monitor and evaluate EPIRA implementation
• Assist and monitor ECs institutional strengthening programme
• Support to enhance power generation planning through procurement of
generation planning software and transmission planning tools
249
C EPS I 2018
OVERALL
BY 2040

(2017-2018) (2019-2022) (2023-2040)
• Conduct policy studies on optimal energy mix for off-grid areas

• Rationalise and improve UCME subsidy system
• Develop resiliency policies for off-grid facilities
• Strengthen institutional cooperation (DOE, NEA and NPC) to
ensure transparent and effective CSP and mutually beneficial
MISSIONARY ELECTRIFICATION
supply contracts for ECs

• Determine new areas for electrification as well as eco-zones for
private investment purposes
• Performance assessment and benchmarking
• Develop graduation policy from UCME

• Develop and maintain Missionary Electrification Database System
• Promote the integration of other economic incentives in missionary
electrification
• Capacitate DUs to improve power supply contracting in off-grid areas
• Monitor and enhance the implementation of the privatisation of remaining
NPC-SPUG generating assets
• Monitor compliance to Philippine Small Grid Guidelines
• Expand services and improve operations of electric cooperatives for increased
efficiency and reduction of losses
250
C EPS I 2018
OVERALL
BY 2040

(2017-2018) (2019-2022) (2023-2040)
• Process, evaluate • Process, evaluate • Electrification of

and approve projects and approve projects all targeted and
that contribute to that contribute to identified households
the attainment of the attainment of (households
90% household 100% electrification identified beyond
electrification by of targeted and 2015 Census)
TOTAL ELECTRICITY ACCESS IN THE COUNTRY

2017 (based on 2010 identified households • 100% household
Census) by 2022 accessible to electrification of all
o NIHE grid (based on 2015 off-grid areas
o ER 1-94 Census)
o PV Mainstreaming o ER 1-94
o ASEP o NIHE (Phase 2)
o QTP o PV Mainstreaming
• Monitoring of HEDP (under ASEP)
programme o QTP
HEDP
o REMB HEP using • Monitoring of HEDP

RE programme
o NEA BLEP and SEP o REMB HEP using
o NPC RE
Electrification o NEA BLEP and SEP
efforts o NPC Electrification
• Establish efforts
off-grid Database
Management System
(Baseline)
• Develop proposal
for NIHE Phase 2
• Process, evaluate and approve projects that contribute to the attainment of rural electrification
o ER 1-94 (electrification and support projects under DLF and RWMHEEF)
o PV Mainstreaming under ER 1-94
o QTP
251
C EPS I 2018
Prior to the enactment of the Republic Act No. 9136, Electric The supply sector is deregulated and open to competition.
Power Industry Reform Act of 2001 (EPIRA), the electricity Supply of electricity to the contestable market is not
industry was vertically integrated and monopolistic considered a public utility operation. The supply contracts
in nature with the National Power Corporation (NPC) between retail electricity suppliers and customers in the
handling transmission and system operations functions contestable market are not regulated by the ERC. Retail
and controlling generating facilities. The implementation competition commenced on 26 June 2013 for electricity
of the EPIRA eventually dismantled the monopoly in the end-users in Luzon and Visayas with a monthly peak
generation and supply sectors. Meanwhile, the transmission demand of at least 1MW. On 26 June 2016, the contestability
and distribution sectors remain as regulated monopolies. threshold was lowered to 750kW. The migration of end-
users with a monthly peak demand of 750kW to 999kW
The transmission sector remains a regulated common was temporarily suspended in March 2017 due to a legal
electricity carrier business, subject to the rate-making issue but was resumed in January 2018 by virtue of DOE
powers of the Energy Regulatory Commission (ERC). At Circular No. DC2017-12-0013. As of 31 January 2018,
present, the National Grid Corporation of the Philippines there are 960 contestable customers with retail electricity
(NGCP) is the grantee of the franchise to operate, supply contracts, according to a report released by ERC.
manage and maintain, and in connection therewith, to
engage in the business of conveying or transmitting The enactment of EPIRA sets into motion several structural
electricity through a high voltage back-bone system of reforms in the Philippine electric power industry. ERC
interconnected transmission lines, substations and related approved the unbundling of charges in the electric
facilities, system operations and other activities that are power bill in 2003. This was followed by the gradual
necessary to support the safe and reliable operation of the implementation of the cross subsidy removal scheme in
transmission system. 2004. The WESM began its commercial operations in the
Luzon grid in June 2006. WESM became operational in
The distribution sector is similarly treated as a regulated the Visayas grid in December 2010. Most of the generation
common carrier business where it is mandated to provide assets and independent power producer (IPP) contracts of
an open and non-discriminatory access to its distribution NPC were sold by the Power Sector Assets and Liabilities
system to all end-users. The ERC regulates the retail rates Management (PSALM) Corporation in order to settle NPC’s
charged by Distribution Utilities (DUs) for the supply of financial obligations and stranded contract costs and
electricity in their captive market. At present, there are 140 create a competitive generation sector.
private investor-owned utilities and electric cooperatives
in the Philippines.
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C EPS I 2018
Figure 8: Electricity Market Structure
Competitive generation sector
Regulated transmission and

distribution area
Competitive electricity service

providers
• Privatisation of NPC generation and

transmission assets End-users choice
• Unbundling of electricity tariffs for
transparency
• Removal of cross-subsidies
• Establishment of wholesale
The DOE was created by virtue of Republic Act No. 7638, Under EPIRA, the ERC has been established as an
otherwise known as the Department of Energy Act of independent and quasi-judicial body and is tasked to
1992. DOE is tasked to formulate energy policies, update regulate the electric power industry. ERC has the power to
the Philippine energy programme and administer energy- promulgate and enforce rules and regulations for electric
related programmes. power industry participants. ERC promotes competition,
encourages market development, ensures customer
Republic Act No. 7832, otherwise known as the Anti- choice and polices abuse of the market power.
electricity and Electric Transmission Lines/Materials
Pilferage Act of 1994, penalises the pilferage of electricity Republic Act No. 9513, otherwise known as the Renewable
and the theft of transmission lines and materials. It also Energy Act of 2008, was promulgated to accelerate the
established a cap on the recoverable rate of system losses development of the country’s renewable energy (RE)
for private electric utilities and rural electric cooperatives. resources by providing fiscal and non-fiscal incentives to
private investors, equipment manufacturers and suppliers.
Republic Act No. 9136, otherwise known as the Electric The policy mechanisms for on-grid RE development
Power Industry Reform Act of 2001 (EPIRA), together with provided under the law includes net metering, feed-in-
its Implementing Rules and Regulations (IRR), provides the tariff, renewable portfolio standards, green energy option
overall direction for the restructuring of the electric power programme, and the RE market.
industry.
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Demand and Supply Outlook (2016-2030)
The following is the Demand-Supply Outlook for the period of 2016 to 2030 for each of the major grids: Luzon, Visayas
and Mindanao.
Figure 9: Luzon Demand-Supply Outlook 2016 – 2030
High GDP Scenario (8% GDP: 25% Reserve Requirement)

Capacity Addition MW
LUZON WILL NEED 7,320MW
Baseload 2,970
ADDITIONAL CAPACITY BY 2030
Midmerit 4,300
Peaking 50 AAGR=4.9%
TOTAL 7,320 65% Baseload Requirement
26,000
24,000
22,000 65% Baseload
20,000 Requirement
AAGR
18,000 = 4.9%
16,000
MW
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Capacity Addition – Peaking 0 0 0 0 0 0 0 0 0 0 0 0 0 0 50
Capacity Addition – Midmerit 0 0 0 0 0 100 700 1,400 2,100 2,900 3,400 3,700 3,900 4,200 4,300
Capacity Addition – Baseload 0 0 0 0 0 0 0 0 0 0 270 810 1,485 2,160 2,970
Committed Peaking 7 7 7 37 38 38 38 38 38 38 38 38 38 38 38
Committed Midmerit 402 876 876 876 876 876 876 876 876 876 876 876 876 876 876
Committed Baseload 160 558 988 1,328 1,736 1,736 1,736 1,736 1,736 1,736 1,736 1,736 1,736 1,736 1,736
Existing Peaking 2,300 2,300 2,300 2,300 2,300 2,300 2,300 2,300 2,300 2,300 2,300 2,300 2,300 2,300 2,300
Existing Midmerit 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Existing Baseload 10,808 10,808 10,808 10,808 10,808 10,808 10,808 10,808 10,808 10,808 10,808 10,808 10,808 10,808 10,808
Reserve Requirement 2,432 2,467 2,592 2,724 2,863 3,000 3,145 3,297 3,457 3,625 3,802 3,989 4,185 4,391 4,608
System Peak Demand 9,726 9,870 10,368 10,895 11,451 12,000 12,579 11,187 13,828 14,501 15,210 15,955 16,739 17,564 18,432
65% baseload Reqt 7,902 8,019 8,424 8,852 9,304 9,750 10,220 10,715 11,235 11,782 12,358 12,963 13,601 14,271 14,976
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C EPS I 2018
Figure 10: Visayas Demand-Supply Outlook 2016 – 2030
VISAYAS WILL NEED 3,204MW
Baseload 1,804
Midmerit 1,400
Peaking 0 AAGR=6.9%
7,000
6,000
65% Baseload
Requirement
5,000
MW
AAGR
4,000 = 6.9%
3,000
2,000
1,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Capacity Addition – Midmerit 200 300 400 500 700 800 900 900 1,000 1,000 1,100 1,100 1,300 1,300 1,400
Capacity Addition – Baseload 0 0 0 0 0 82 246 410 574 738 902 1,148 1,312 1,558 1,804
Committed Baseload 208 231 326 326 326 326 326 316 326 326 326 326 326 326 326
Existing Peaking 802 802 802 802 802 802 802 802 802 802 802 802 802 802 802
Reserve Requirement 470 499 536 575 616 658 703 751 802 857 915 978 1,044 1,115 1,191
65% baseload Reqt 1,526 1,623 1,741 1,867 2,003 2,139 2,285 2,441 2,607 2,785 2,974 3,177 3,393 3,625 3,871
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Figure 11: Mindanao Demand-Supply Outlook 2016 – 2030
MINDANAO WILL NEED 3,080MW
Baseload 1,680
Midmerit 1,400
Peaking 0 AAGR=7.6%
8,000
7,000
6,000
65% Baseload
Requirement
5,000
MW
AAGR
4,000 = 7.6%
3,000
2,000
1,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Capacity Addition – Midmerit 100 100 100 100 200 400 600 800 900 1,000 1,100 1,100 1,200 1,300 1,400
Capacity Addition – Baseload 0 0 0 0 0 0 0 105 210 420 630 945 1,155 1,365 1,680
Committed Baseload 482 594 1,029 1,029 1,029 1,029 1,029 1,029 1,029 1,029 1,029 1,029 1,029 1,029 1,029
Existing Peaking 853 853 853 853 853 853 853 853 853 853 853 853 853 853 853
Reserve Requirement 446 478 516 557 602 647 695 748 804 864 929 998 1,073 1,154 1,240
65% baseload Reqt 1,451 1,553 1,677 1,811 1,956 2,102 2,260 2,430 2,612 2,808 3,018 3,245 3,488 3,750 4,031
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Electricity Pricing
In general, the electric power bill to end-users has the following unbundled components:8
Generation Charge: Supply Charge:

This covers the cost associated with the distribution utility’s This is for the cost of rendering services to customers
purchase of power from its suppliers such as billing, collection, customer assistance and other
associated services.
Transmission Charge:
This refers to the charge for the cost of delivery of Subsidies/Discounts:
electricity from generators to the distribution system, and Lifeline Discount/Subsidy (Section 73, RA 9136), Senior
charges for ancillary services procured by the transmission Citizen Discount/Subsidy (RA 8884) Senior Citizen
service provider. Discount or the Lifeline Discount.
System Loss Charge: Taxes:

This refers to the cost-recovery of power lost due to Local Franchise Tax and Value-Added Tax (VAT)
technical and non-technical system losses. Recovery of
system loss is capped at 8.5% for private DUs and at 13% Universal Charges (Section 34, RA 9136):
for electric cooperatives (ECs) starting 2010. Environmental Charge, Missionary Electrification Charge,
Stranded Contract Cost of NPC
Distribution Charge:
This covers the cost of developing, constructing, operating Feed-In-Tariff Allowance (FIT-All):
and maintaining the distribution system. Is a uniform charge in peso per kWh (PhP/kWh) billed to
all on-grid electricity consumers nationwide. The FIT-All
Metering Charge: charge forms part of a fund which is used to pay the FIT-
This is for the cost attributed to the provision of the eligible developers of renewable energy-based power
metering service. plants (i.e, solar, wind, biomass, run-of-river hydro) for the
energy they produce (Section 7, RA 9513)
Source:
8 Meralco Bill Components. Retrieved from:
http://www.meralco.com.ph/consumer-information/understanding-your-bill/meralco-bill-components.
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Removal of Electricity Subsidies Among Generation, Transmission and Distribution Sectors
Rule 16 of the implementing rules and regulations (IRR) of In accordance with section 7 of the R.A. No. 9513,
the EPIRA provides the scheme for the removal of cross Renewable Energy Act of 2008 (RE Act) and ERC
subsidies, including subsidies within grids, between grids Resolution No. 16, Series of 2010, electricity end-users
and between classes of customers. This rule exempts the who are supplied with electricity through the distribution
lifeline rate subsidy for marginalised end-users. The senior or transmission network shall share in the cost of the FIT
citizen subsidy is likewise not included, since the subsidy through a uniform charge (in Php/kWh), the FIT-All charge.
is mandated by the Expanded Senior Citizens Act of 2010.
3 Power Generation and Transmission & Distribution (T&D) Sectors
Table 3: Installed Capacity by Fuel Type
Capacity (MW) Percent Share (%)

Fuel Type Installed Dependable Installed Dependable
Coal 8,049 7,674 35.4 37.4
Oil-based 4,153 3,286 18.3 16.0
Natural Gas 3,447 3,291 15.2 16.0
Renewable Energy 7,079 6,264 31.1 30.5
Geothermal 1,916 1,752 8.4 8.5
Hydro 3,627 3,269 16.0 15.9
Wind 427 383 1.9 1.9
Biomass 224 160 1.0 0.8
Solar 885 700 3.9 3.4
Total 22,728 20,515 100.0 100.0
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i. List of Power Grid by Major Voltage Level
The Philippines has three major grids, divided by the major island groups – Luzon, Visayas, and Mindanao. The table
below summarises the most commonly-used voltage levels for each of the major grids.
Table 4: Power Grid by Voltage Level by Region
Sector LUZON VISAYAS MINDANAO

Transmission and Sub- • 500kV • 230kV • 230kV
transmission • 230kV • 138kV • 138kV
• 115kV • 350kV (HVDC) • 115kV
• 69kV • 115kV • 69kV
• 69kV
Distribution • 34.5kV • 13.8kV • 13.8kV
• 13.8kV
4 Reduction of Carbon Emission
The Renewable Energy Act and its Major Policy Mechanisms
Figure 12: Coverage of RE Act of the Philippines
Renewable Energy Act
Fiscal Incentives Non-Fiscal Incentives
Renewable Portfolio Feed-in-Tariff Scheme

Net-Metering Green Energy Option
Standards (RPS) (FIT)
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Two policy mechanisms have been implemented so far: Net Metering and FIT Scheme.
Net Metering:
In July 2013, the ERC issued the Net Metering Rules to govern the implementation of the Net Metering Programme in
the country.
Table 5: Net Metering in the Philippines as of December 2017
DU/EC No. of Customers Capacity (kW)

MERALCO 1,036 7,204.57
CENECO 46 494.74
SFELAPCO 44 381.67
VECO 41 295.89
NORECO II 29 367.27
AEC 19 116.28
CELCOR 17 54.56
CEBECO I 13 83.75
DECORP 11 105.53
MECO 10 48.25
Others (17) 63 430.61
Total 1,329 9,583.12
Source: Energy Regulatory Commission
Feed-in-Tariff (FIT):
Table 6: Feed-in-Tariff rates9
The ERC approved the FIT rates per
technology in 2012. Subsequently,
the ERC promulgated the FIT- RE Technology Approved Rates in PHP/kWh (USD/kWh) 10
All guidelines and approved the Run-of-River Hydro Php 5.90 (USD0.12)
collection of the FIT-All from all end- Biomass Php 6.63 (USD0.14)
users in 2015 when the guidelines
Wind (Round 1) Php 8.53 (USD0.17)
came into effect. The FIT-All is a
funding mechanism to support FIT- Wind (Round 2) Php 7.40 (USD0.15)
qualified RE generators. The FIT Solar (Round 1) Php 9.68 (USD0.20)
rates, as prescribed by the ERC, are Solar (Round 2) Php 8.69 (USD0.18)
categorised by the type of technology.
Source:
9 Feed-in-Tariff rates. Presented by the Assistant Director of DOE’s Renewable Energy
Management Bureau.
Atty. Marissa P. Cerezo to Meralco. 6 June 2016
10 Exchange Rate: 1USD = Php 49.00
.
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On 22 December 2017, the DOE issued the Department Circular promulgating the RPS Rules. The guidelines for the
implementation of the Green Energy Option Programme is currently in the drafting stage.
Production of RE from Various Resources
Table 7: Total 2016 Philippine Power Generation by Source in GWh 11
Energy Source Capacity in GWh % Share

RE 21,979 24.2%
Geothermal 11,070 12.2%
Hydro 8,111 8.9%
Biomass 726 0.8%
Solar 1,097 1.2%
Wind 975 1.1%
Source:
11 Philippine Power Statistics. Department of Energy. Retrieved from https://www.doe.gov.ph/philippine-power-statistics
Department of Energy 2016 Power Statistics
Plans and Strategies to Reduce Greenhouse Gas (GHG) Emissions
Some of the enabling legislations and government initiatives contributing to the country’s action towards the reduction
in Greenhouse Gas emissions include:
• Republic Act NO. 9729, Climate Change Act of 2009
Enacted in July 2009, it aims to streamline climate change into government policy formulations, establish the
framework strategy and programme on climate change that leads to the creation of the Climate Change Commission.
• National Framework Strategy on Climate Change (NFSCC)12
The NFSCC envisions a ‘Climate-resilient Philippines’ with healthy, safe, prosperous and self-reliant communities,
and thriving and productive ecosystems.
The NFSCC has two main pillars of action: Adaptation and Mitigation.
Source:
12 Philippine Power Statistics. Department of Energy. Retrieved from https://www.doe.gov.ph/philippine-power-statistics
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Under the Mitigation Pillar, the Climate Change e) National REDD + Strategy:
Commission (CCC) cites the following guiding Reducing Emissions from Deforestation and Forest
strategies to reduce GHG emissions:13 Degradation (REDD) through the sustainable
management of forests and the protection and
a) Energy Efficiency and Conservation: enhancement of carbon stocks in watersheds, forests
Develop and enhance clean energy sources, uses and other terrestrial ecosystems
and other efficiency measures towards a low carbon
economy in the energy sector. f) Waste Management:
Full implementation of proper waste management
b) Renewable Energy: • Republic Act (RA) No. 9367, Biofuels Act of
Realise the full potential of the country's renewable energy 2006, declares the policy of the state to reduce
capacity so as to further contribute to energy security and dependence on imported fuels with due regard to
promote low-carbon growth in the energy sector the protection of public health, the environment and
the natural ecosystems consistent with the country's
c) Environmentally Sustainable Transport: sustainable economic growth that would expand
Improve the efficiency of the transport sector through opportunities for livelihood by mandating the use of
the increased uptake of alternative fuels and expansion biofuels.
of mass transport systems
Source:
13 National Framework Strategy on Climate Change 2010-2022.Climate
d) Sustainable Infrastructure:
Change Commission. Retrieved from: http://www.neda.gov.ph/wp-
Reduce carbon footprint through energy-efficient design
content/uploads/2013/10/nfscc_sgd.pdf
and materials for public infrastructure and settlements
The government has declared a policy to promote the judicious conservation and efficient utilisation of energy resources
through the adoption of cost-effective options towards the efficient use of energy to minimise environmental impact.
The primary goal of the government towards energy efficiency and conservation is to make it a way of life. 14
The strategies to achieve these goals include: 15

a) the aggressive promotion of energy conservation and energy efficient technology to effect higher energy savings both
for the consumer and producer through information, education and communication campaigns;
b) intensify collaboration with the private sector in implementing energy efficiency programmes through voluntary
agreements;
c) continuous implementation and expansion of the appliance and equipment energy standards and labeling
implementation of building energy usage standards;
d) integration of energy efficiency concepts in the procurement practices of the government;
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e) the provision of technical assistance in identifying, implementing and evaluating effective measures to improve energy
use efficiency;
f) the use of alternative fuel to reduce dependence on imported oil;
g) periodic programme monitoring and evaluation to assess the effectiveness of the energy efficiency and conservation
plan.
The Philippine Energy Efficiency Roadmap 2014-30 is a detailed outline of a strategic plan that is directed at creating a more
energy-efficient Philippines across all sectors of economic activity, namely industrial, transport, commercial and residential.
Remarks:
14 National Energy Efficiency and Conservation Programme. Department of Energy. Retrieved from: https://www.doe.gov.ph/eec-plans-and-programmes
15 National Energy Efficiency and Conservation Programme. Department of Energy. Retrieved from: https://www.doe.gov.ph/eec-plans-and-
programmes
Philippine Energy Efficiency Roadmap 2014 – 2030
The Philippine Energy Efficiency Roadmap 2014-30 is a detailed outline of a strategic plan that is directed at creating a more
energy-efficient Philippines across all sectors of economic activity, namely industrial, transport, commercial and residential.
Remarks:
Table 8: Philippine Energy Efficiency Targets by 2030
Implied annual Annual energy

% savings (total saved by 2030
Sector savings by 2030) (ktoe)
Transport 1.9% (25%) 4,861
Industry 1.3% (15%) 3,088
Residential Buildings 1.2% (20%) 1,432
Commercial Buildings 1.9% (25%) 1,206
Agriculture* 0.8% (10%) 78
Total 1.6% (24%) 10,665
Economy-wide improvement in energy intensity 3%

*This level of efficiency improvement is assumed through endogenous technology advancement; no initiatives are proposed for the agricultural
sector given its small percentage share of national energy use.
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Figure 13: Philippine Energy Efficiency Roadmap
SHORT-TERM (2014-15) MEDIUM-TERM (2016-20) LONG-TERM (2021-30) ENERGY SAVINGS

OVER BASELINE
(BY 2030)
• Fuel Efficiency Standards • Financial incentives for EE • EE programmes beyond
developed all vehicles through vehicle taxes road transport (passenger
• Risk management on • Promotion of key vehicle and cargo ships, aviation 25%
Transport vehicle conversion, fuels)
e-vehicle programmes technologies
• Reintegration of urban
• Re-formulated • Driver education and fleet planning and transport
coordination mechanisms management programmes energy use
• Link existing training • Develop standards for • Review inward investment

projects with ESCO motors rules for EE to remove
Decreased energy consumptions of 1.6% per year against baseline forecasts

Savings of approx. 10,665 KTOE p.a. (one-third of current demand) by 2030
capacity building • Facilitate example models distortions 15%
• Develop sectoral focus including ESCOs, finance
Industry programmes to facilitate • Implement demand
EE in energy intensive response programmes
40% reduction in energy intensity compared to 2010 baseline

industries (e.g. cement and • Review of energy pricing
construction, sugar)
• Enforceable minimum • Develop role of utilities • Towards energy efficient

energy standards for as key implementation housing precincts
appliances, with a focus partners and information • Inclusion of residential 20%
Residential on space cooling and providers measures in Building Code
Buildings refrigeration • Specific EE programmes
• Building envelope for low-income
2030 OBJECTIVES:
measures – cool roofs and households
insulation
• Reformulate group to • EE measures for inclusion • Incentive funds in place

oversee EE measures in in national building code for EE, including private
Building Code • Government financiers
• Retro-commissioning demonstration retrofits • Mandatory disclosure 25%
Commercial programme for existing to showcase ESCOs and of commercial building
Buildings buildings financing models performance
• Benchmarking and ratings • Promote green building
for building information & ratings
reporting
• Support passage of • National strategy for • Energy Efficiency and

Enercon Bill efficiency in power supply Conservation Centre
• Establish EE database, data sector mandated and established
collection regime, M&E • Stronger coordination with
Cross- framework other levels of government
Sectoral • Establish enforcement (LGUs)
regimes • Regular reporting and
• Strengthen ESCO capacity monitoring to commence
• Continue awareness-
raising
Sending market-signals to provide incentives for EE

Strengthening existing policy, advocacy, programmes and institutional structures
Harnessing private sector/partner finance
Enabling innovation and new technologies
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Meralco’s Smart Grid Programme is composed of two core pillars – the Advanced Network Automation (ANA) and
Advanced Metering Infrastructure (AMI).
Figure 14: Meralco Smart Grid Programme
Part 2 l Our Smart Grid Programme

Meralco Smart Grid Programme
Advanced Network Automation (ANA)

• Smart devices and systems over the distribution network
• Objective: Monitor and manage network operation and assets
in real-time to address changing loads, generation, and outage
events.
Smart Grid is a two-way
communications-enabled
electric system that uses
intelligent devices and
systems to:
• Improve network
reliability, efficiency, and
power quality amid the
emergence of distributed
energy resources
• Empower customers
via enhanced energy
management
Advanced Metering Infrastructure (AMI)

• Integrated system of smart meters, communications
infrastructure, and back-end systems
• Objective: Enable two-way communication between utilities
and customers
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Advanced Network Automation (ANA) Advance Metering Infrastructure (AMI)
Is all about making the grid more intelligent. It consists of Aims to empower customers through an integrated system
three major components - field devices, back-end systems of smart meters, communications networks and back-
and communication network, that enable the monitoring end systems, enabling two-way communication between
and management of network operations and assets in real- Meralco and its customers.
time to address changing loads, generation and outage
events. In 2014, Meralco started piloting its prepaid electricity project
under the brand ’Kuryente Load‘ or ’KLoad‘ (Kuryente means
The back-end systems consist of applications and hardware electricity) in Angono, Rizal.
where processing, analytics, and control takes place. In 2016,
Meralco completed the implementation of its Advanced Currently Meralco has more than 92,000 KLoad customers
Distribution Management System (ADMS), a combined from the four densest municipalities within the Meralco
outage management and distribution management system. franchise-Manila, Makati, Mandaluyong, Pasig, and
In the coming years, Meralco aims to deploy more systems pocket installations in San Juan, Quezon City, Paranaque,
such as Enterprise Geographical Information System (GIS) Novaliches, Caloocan, other towns of Rizal (Taytay, Cainta
for integrated asset information and streamlined design and Binangonan), Cavite and Bulacan.
process, Intelligent Asset Management for online asset
condition monitoring and advanced analytics to optimise Figure 15: Meralco Customers and Coverage Area
asset utilisation, and mobility for improving operational
efficiency and crew productivity.
Meralco has activated more than 92,000 customers from
To achieve a certain level of visibility and control, smart four major cities in Metro Manila.
field devices are deployed within the network to serve as
eyes and ears in the field. These are the smart substations,
remote-controlled line devices, mobile devices of the
field crews, smart sensors, monitors and meters and the
distributed generators.
The last but equally important component of ANA is the COVERAGE

communications infrastructure, which enables the two-way AREA
flow of information and control signals between the back-
end systems and the various field devices. Smart Grid will EXISTING
require a very robust communications system especially for Manila l Mandaluyong l
ANA where the speed and reliability of communications is Makati l Pasig l portions
an imperative.
of Rizal l pockets in
Together, this ANA ecosystem will deliver operational San Juan, Quezon City,
benefits such as improved reliability and reduced outage Paranaque, Novaliches,
duration, redounding to greater customer satisfaction. It will Caloocan, Cavite and
also optimise asset utilisation and improve crew productivity.
Bulacan
Lastly, it will help to accommodate more renewables into
the grid and pave the way for customer participation in grid
balancing. ACTIVATIONS
92,768 customers
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Customer satisfaction for KLoad has improved in the past

three years with 8.3 satisfaction rating for 2017. Benefits Figure 17: Target on Deployment of Smart Meters
cited include payment convenience, alignment with cash
flow and consumption savings. The goal is to have 100% deployment of smart
meters. This dependent on (a) regulatory approval
and (b) customer acceptance
Figure 16: MERALCO Customer Satisfaction
COMMS INFRA DEPLOYMENT PLAN
8.3 2019: Whole of Metro Manila

8.28 2022: Meralco Franchise Area
8.2
2016 2017 2018

3,297
2,748
Meralco’s AMI deployment strategy is to scale up AMI 2,199

quickly and efficiently to maximise customer and utility
benefits. AMI will be implemented on a phased approach 1,653
following the regulatory cycle.
1,155
Meralco is targeting to have 3.3 million smart meter 721

customers and targeted points within the distribution 381
network by 2024. 40 146
2016 2017 2018 2019 2020 2021 2022 2023 2024
* in thousands
Cumulative
Total 40 146 381 721 1,155 1,653 2,199 2,748 3,297
Incremental 106 235 340 434 498 546 549 549

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AMI Offerings and Benefits to Customers
In accordance with the ERC’s AMI Rules, Meralco’s AMI SMS, mobile app and other channels that will be made
will have the ability to deliver the basic services of remote available over time. Meralco’s KLoad service provides the
reading, remote connection and reconnection, remote following basic features to customers:
disconnection, interval reading, outage detection and
Meter Irregularity Detection (MID). For these services, a) Postpaid+
customers will be provided with a mechanism to receive b) Smart Home Programme
notifications and warnings through the web portal, email,
Figure 18: Prepaid Electricity (KLoad) offered by MERALCO
Currently, Meralco is offering Prepaid electricity (KLoad) through AMI and will
eventually expand to Postpaid + and Smart Home across all customer segments
Meralco also intends to extend the use of smart meters/ c) Advance outage management
AMI for the following supplemental services: d) Management of distributed energy resources
a) Net metering e) Smart streetlights
b) Demand response f) Electric vehicle supply equipment management
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Super Critical Generation
Meralco PowerGen Corporation (MGen), a wholly owned subsidiary of Meralco, is building a portfolio of new, highly
fuel-efficient and highly-reliable power generating facilities of over 3,500MW. Included in its generation portfolio are the
San Buenaventura Power Ltd. Co. (SBPL), a 455MW coal-fired power generation plant in Mauban, Quezon, the first coal-
fired power plant to use supercritical technology, which is expected to come online by 2019; the Redondo Peninsula
Energy, Inc. (RP Energy), a 2 x 300MW Circulating Fluidised Bed (CFB) power plant in Subic, Zambales, with commercial
operations set to start in 2020 and; the Atimonan One Energy Inc. (A1E), a 2 x 600MW ultra-supercritical coal-fired power
plant in Atimonan, Quezon, the first power plant in the country to use this technology, with commercial operations in
2021.
Meralco Technology Direction
Meralco has defined six key areas that will form the basis of its Digital Transformation and labeled them the ‘6D’s of digital’.
Figure 19: 6D’s of Digital
Transform the customer DIGITAL DIGITAL Extend the utility value

interaction model to CUSTOMER ENERGY proposition, sell and
enable digital interaction INTERACTION PRODUCTS & deliver new digitally-
including omni-channel SERVICES enabled products and
solutions and customer services
analytics
Improve fault isolation DIGITAL GRID DIGITAL Develop digital services

and outage management,
optimise voltage & power,
OPERATIONS
DIGITAL ENTERPRISE to change the way
support services are
PIVOT
and effectively integrate provided and managed.
distributed energy, Digitise people
analytics for real time management processes
network management 6 FOCUS AREAS
Improve planning and DIGITAL DIGITAL Optimise asset planning

scheduling, logistics FIELD ASSET and investment
optimisation, more effective WORKER MANAGEMENT functions, more effective
management of work use of information
requirements & efficiency in leveraging advance
back office enabled by mobile analytics
solutions
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Digital Customer Interaction; is about transforming the way Meralco interacts with its customers by opening up new
digital channels and understanding customer needs better through data analytics.
The customer-facing digital channels will integrate with a cloud-based Customer Relationship Management (CRM)
system that will enable Meralco to get to know its customers better. Front line staff will be able to see a 360 degree
view including all the interactions the customers have had with Meralco and key information on their account. Major
projects under this stream include CXE (Customer eXperience Engine), CIS Transformation (replacement of back-end
core Customer Management and Billing Solution), upgrade of Call Centre systems and data analytics for fraud protection
and customer segmentation.
Digital Grid Operations; is focused on initiatives towards adopting new grid technologies such as sensors, advance
distribution management system and others that will enable the integration of renewables and utilise data analytics.
A number of pilot projects are planned in the areas of energy storage, energy efficiency, Demand Response (DR), and
advance software and hardware that enables greater control and interoperability across grid elements. Fundamental to
Meralco’s Smart Grid is the deployment of AMI meters that will provide customer-level outage alerts in real-time.
One major project recently completed is Advanced Distribution Management System (ADMS) which provides outage
management as well as a ‘self-healing’ network capabilities and is expandable with additional modules for electric vehicle
(EV) management and renewables integration.
Digital Asset Management; is about using technology to optimise asset investment and using analytics to ensure assets
are well maintained and maximised.
In 2016, Meralco completed the implementation of its Enterprise Asset Management (EAM) system to handle all of its
network assets. EAM data analytics will prove a key tool for preventive and predictive maintenance. Meralco is also
looking to upgrade its GIS system to the latest generation enabling 3D design.
Digital Field Worker; seeks to improve work planning and scheduling, as well as the performance of Meralco’s field crew,
by implementing new mobility solutions to link with major systems like EAM and ADMS. This will provide field crew access
to the right information at the right time.
Field workers can update the progress of work/trouble order completion and outage restoration to reduce paper forms
and improve accuracy and efficiency. Meralco is also looking at drones to help conduct field activities such as line
inspections, maintenance and storm damage assessment, with safety and operational efficiency in mind.
Digital Enterprise; is about transforming the core of the organisation through the digitalisation of back-end processes, the
introduction of new collaboration and productivity tools, the implementation of learning and development programmes,
and the update of policies to promote a culture of innovation and digital capability build.
Major projects in this work stream include Office 365 deployment, Workplace by Facebook for social collaboration,
artificial intelligence, mobile applications, cloud, data centre and storage strategies, Master Data Management (MDM),
Enterprise Content Management and various project to further strengthen cybersecurity.
Digital Energy Products and Services; will look into ways of extending the value proposition to Meralco customers, to
sell and deliver new digitally-enabled products and services that help manage customer energy needs. Examples include
Smart Home, Smart City, EV, and solar and battery services.
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Smart Grid Policy Framework and Roadmap Activities by the Department of Energy
The Philippine Department of Energy (DOE) has relaunched its effort to promulgate a country-level smart grid policy and
roadmap (2018-2040) four years after the issuance of DOE Department Circular DC2013-03-0003 entitled: ’Creating
the Inter-Agency Steering Committee for the Development and Formulation of a Comprehensive and Holistic Smart
Grid Policy Framework and Roadmap for the Philippine Electric Power Industry‘. On 27 – 29 November 2017, the DOE
conducted a multi-stakeholder Smart Grid Forum in Clark, Pampanga which gathered distribution and transmission
network providers as well as generators which presented their smart grid initiatives and participated in issue-specific
breakout groups.
To facilitate the issuance of a national Smart Grid policy and roadmap, the DOE created six Smart Grid Technical Working
Groups (SG-TWGs) tasked to address the different challenges being encountered in large-scale deployments of smart
grid projects. For this purpose, the TWGs were assigned to focus on one of these broad topics:
a) Consumer empowerment
b) Power system operations
c) Sustainable and renewable energy
d) Standardisation
e) ICT and cybersecurity
f) Regulatory support
During the synthesis of the SG Forum in November 2017, the DOE acknowledged the following:
a) Smart grid development is a country-wide effort that requires the holistic contribution of all the energy sectors
involved.
b) Strategic push needs to be exerted to increase interoperability between systems, strengthen shared platforms, and
establish harmonised standards and protocols.
c) Smart grid development needs to be calibrated, with due consideration to customer needs, the physical readiness of
networks and ancillary services, the availability of resources for investments, and regulatory support.
d) Smart grid needs to consistently account for information sharing, public awareness and resilience to natural and
human induced calamities.
e) Clarifying regulatory limitations and facilitating regulatory approvals will expedite investments for the scale up and
replication of smart grid systems.
The DOE SG-TWGs will be drafting a Circular on SG policy and roadmap in consultation with stakeholders.
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7 Major Issues of Transformation Impacting the Electricity Supply Industry
The Philippine Energy Industry is Faced with Regulatory Challenges Amid an Evolving Business Landscape
Following the enactment of the RE Law in 2008, the government launched various incentives for generating companies
and consumers to move towards RE. Under the RE Law, organisations that invest in RE-based generation may enjoy tax
credits, other fiscal and non-fiscal incentives and participate in programmes as the Feed-in-Tariff (FIT), Net Metering
(NM), Renewable Portfolio Standards (RPS), and Green Energy Option Programme (GEOP). Of these, FIT and NM have
been implemented, the rules for the implementation of RPS were recently promulgated, and the GEOP rules are expected
to be issued within the year.16
As of 30 April 2017, 42 projects equivalent to more than 1,000MW of new RE-based generation have been added through
the FIT programme. The FIT is partially subsidised by consumers through an add-on to their electricity bills. This add-
on, known as the FIT-All, has increased more than fourfold from an initial P0.04 per kWh in 2015 to P0.183 per kWh
beginning in June 2017. As a result of the increasing burden on electricity consumers, the government has decided
against proposals to further expand the FIT programme.
Source:
16 Department of Energy. Republic Act No. 9513. Department of Energy. 2008. Web. 24 May 2017
Meanwhile, the country has seen an increasing number of consumers with RE-based behind-the-meter generation.
Under the Net Metering programme alone, 914 end-users (mostly households) have so far registered, with an aggregate
solar PV capacity of 6MWp. Outside of the NM programme, more and more commercial and industrial establishments are
also installing solar PV rooftops to provide electricity for their own use.
Consumer groups and business organisations have expressed concerns about the impact of the RE Law’s implementation
on power prices and the reliability of electric service. Apart from the growing subsidy burden in the bills of consumers,
frequent power outages and curtailment of generating plants due to the high concentration of Variable RE (VRE)
generation in certain parts of the Philippine grid have led to calls for a more careful integration of VRE generation into the
transmission and distribution networks.
Deregulation of the power sector is also progressing. Retail Competition and Open Access (RCOA) has been in commercial
operations since June 2013 and has now expanded to consumers with a minimum of 750kW average peak demand.
However, there are uncertainties surrounding its implementation as a result of ERC and DOE regulations that provide for
mandatory contestability, prohibition of local retail electricity suppliers, imposition of market caps and other restrictions.
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Due to questions concerning the validity of the ERC and DOE regulations, the Philippine Supreme Court, acting on
a petition filed by the Philippine Chamber of Commerce and Industry (PCCI), Ateneo de Manila University, San Beda
College-Alabang and Riverbanks Corporation, issued a temporary restraining order (TRO) in February 2017 prohibiting
the implementation of said ERC and DOE regulations. The petitioners led by PCCI, argued in the petition that the RCOA
violated the basic constitutional right of consumers to freedom of choice as it deprived them of the right to choose their
supplier of electricity and forces them to be served only by retail electricity suppliers licensed by ERC, contrary to the
express provision and intent of the EPIRA.
The DOE issued two additional circulars, which took effect in December 2017, that seek to provide an updated timetable
for further lowering the threshold for contestability and expressly provide that distribution utilities may serve as local retail
electricity suppliers.
As of 31 January 2018, there were 960 contestable customers with retail electricity supply contracts, according to a report
released by ERC.17 This shows a 36% compounded annual growth rate in the participation of contestable customers
over a period of four-and-a-half years. There were 240 registered contestable customers in the WESM when RCOA
commenced in June 2013.18
Source:
17 Competitive Retail Electricity Market Monthly Statistical Data as of January 2018. Energy Regulatory Commission.
18 Retail Electricity Market Assessment Report (July 2013-December 2014). Philippine Electricity Market Corporation
The current implementation of RCOA has also encouraged the entry of new retail electricity suppliers (RES). As of 31
January 2018, there were 30 RES that are ready to offer their services. There are also 25 distribution utilities that can
serve as local RES within their respective franchise areas. In case of a last resort supply event, 44 suppliers of last resort
are authorised.
In addition to the above mentioned hurdles, energy utilities also face issues surrounding the organisational changes
within ERC. Further, there are other regulatory concerns pending ERC such as the Performance-Based Regulation (PBR)
rules and Competitive Selection Process (CSP) changes.
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The Grid of the Future is Foreseen to be Decentralised, Decarbonised and Digitalised (3D)
Power generation is becoming decentralised and getting closer to the point of consumption as the adoption
of distributed generation (e.g., solar rooftops) rises. In the case of residential solar, penetration in the country
is being driven by the steady decline in the costs of solar panels as well as the implementation of supportive
policies such as DOE’s Net Metering programme. ‘Passive’ consumers transform to become active ’prosumers‘
that generate their own electricity for self-consumption and export excess electricity to the grid. Within the
Meralco franchise area alone, more and more customers are seeing its benefits and shifting to the programme;
in 2013, only 62 customers had net meters but by end of 2017, the count grew exponentially to 1,11719.
Power supply mix is gradually becoming decarbonised, driven by supportive RE policies, cost reductions in technology,
and greater access to funding. Experts assert that the ’centre of gravity’ for RE growth is moving to emerging markets20
such as the Philippines, where the RE share in electricity generation is forecast to increase from 25% in 2016 to 47% in
2040.21
Digitalisation will usher in a new wave of productivity and enable the ’Grid of the Future‘. Among the many emerging
technologies on the horizon are blockchain, Internet-of-Things, edge computing, virtual/augmented reality, robotics
and artificial intelligence. These digital applications can be used to perform predictive maintenance, enhance field force
efficiency, provide deeper insights on customer segmentation, enhance the overall customer journey, and even drive
employee engagement.
Source:
19 Meralco Renewables Programme Group. 12 March 2018
20 International Energy Agency, “IEA raises its five-year renewable growth forecast as 2015 marks record year.” 25 October 2016. Web. 24 May 2017
21 Bloomberg New Energy Finance. New Energy Outlook. 2017
In addition to these 3D’s, grid reliability is also at increasing risk due to changing global weather patterns. The Philippine
climate is entering the ’new normal‘, which is expected to bring in seasonal rainfall change, rising temperatures and
extreme rainfall events22. This predicted change in the local climate may also exert pressure on supply availability.
Source:
22 News, Rappler. “The changing normal in the Philippine climate.” Rappler. 25 November 2015. Web. 24 May 2017.
274
SINGAPORE C EPS I 2018
Area: Capital: Population:
719.9
km2
Singapore 5,612.3 million
Licensed Capacity: GDP:
13,348 USD306.134
MW
(as of 1Q17)
billion
Currency: Electrification Rate:
Singapore 100%
dollar (S$)
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1 Executive Summary
Climate change is one of the biggest environmental challenges facing the world today. Singapore, similar to other
countries, is also vulnerable to the effects of global warming. In 2016, Singapore ratified the Paris Agreement on Climate
Change. The deal aims to limit the rise in global temperature to well below 2°C above pre-industrial levels and, if possible,
at 1.5°C. The agreement entered into force on 4 Nov 2016. Singapore has pledged to reduce its emissions intensity by
36% from 2005 levels by 2030 and stabilise emissions with the aim of peaking around 2030.
Singapore’s electricity industry has been undergoing a c) Technology Test-Bedding

transformation to:
a) enhance energy security and maintain low energy i. test-bedding of integrated advanced metering
prices; solutions to allow electricity, gas and water meters to
b) develop green energy systems; and be read remotely in a reliable and cost-effective way;
c) implement key technological advances in energy ii. test-bedding of large-scale Energy Storage Systems
systems and networks. (ESS) to facilitate greater deployment of solar energy
and increase resilience of the grid;
Many of the policy initiatives and solutions aim to iii. testing the Low Tension (LT) network monitoring; and
strengthen our long-term energy competitiveness, iv. a pilot Demand Side Management (DSM) programme
security and sustainability. to optimise consumption.
Some of the major initiatives include: To better cope with the challenges posed by disruptive
a) Market Developments technologies such as solar panels, ESS and electric cars,
Singapore has also been engaging and learning from best
i. a Request for Proposal for the 1st Futures Incentive practices in the international arena.
Scheme (FIS) was issued in Mar 2018 to enhance the
development of the electricity futures market; The fast-changing energy landscape has posed some
ii. a framework for a regulatory sandbox for energy challenges to the industry. These include:
sector players to test new products and services was
finalised; and a) Impact on Grid reliability and pricing: Increasing
iii. the full liberalisation of the electricity retail market adoption of intermittent renewable energy source
also known as the Open Electricity Market (OEM) by such as solar power exposes the electricity grid to
the second half of 2018 to allow the remaining 1.4 voltage fluctuations. This may necessitate investments
million consumers, mainly households, to choose to harden the network;
their electricity retailers. b) National energy and grid security: Protecting the
power grid and ensuring a reliable energy supply
b) Technology Deployment remain industry-wide priorities;
c) Cybersecurity threats and consumer privacy issues:
i. Singapore’s Land Transport Authority (LTA) launched Increasing market openness and transparency, and
an electric vehicle (EV) sharing programme. To support promoting new customer choices introduces new
the programme, EV charging stations were installed at cybersecurity issues and also threatens consumer
42 locations islandwide as at end-2017. privacy. The CyberSecurity Bill (Bill No. 2/2018)
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C EPS I 2018
was introduced to strengthen the protection of d) Changes to traditional roles of consumers and grid
computer systems providing essential services against operator: Increasing decentralisation, digitalisation
cyberattacks. The CyberSecurity Act will apply to and distributed generation are changing the way we
organisations that are designated as operating Critical generate, distribute and use energy.
Information Infrastructure (CII) in Singapore including
those in the energy sector; and
2 National Energy Policy
Singapore’s National Energy Policy has evolved to address To enhance Singapore’s energy security and
global energy challenges and capitalise on opportunities competitiveness, Singapore is looking into setting up
to sustain our long-term economic growth. It aims to: a Secondary Gas Trading Market (SGTM). It will:
i. allow gas traders to trade gas without a lengthy
a) strengthen our long-term energy competitiveness, negotiation process;
security and sustainability; and ii. enable gas users to better optimise their gas
b) deliver benefits to consumers through competitive supply portfolios; and
pricing and more choices. iii. enhance Singapore’s position as a hub for LNG
and gas trading activities.
The key strategies to achieve these objectives are:
b) Facilitating the Deployment of Renewable Energy
a) Diversifying Fuel Supply Sources and Enhancing LNG such as Solar Energy
Infrastructure
Singapore continues to exploit the potential of solar
We are dependent on imported oil and gas to meet energy as a renewable energy source. The total
our energy needs and hence, are vulnerable to the installed solar PV capacity has increased from 1.9MWp
risks of supply disruption. The key to energy security in 2009 to 143.3MWp by end-2017. The strong growth
is to diversify our energy resources to protect against is expected to continue as technology improves and
supply disruptions and significant price increases: costs go down. Singapore plans to raise its solar power
i. the Liquefied Natural Gas (LNG) Terminal, which capacity to 350MWp by 2020 and 1GWp beyond 2020.
was completed in 2013, has allowed the import
of LNG and hence, reduce our dependence on Among the measures taken to spur the adoption of
piped natural gas. The terminal completed its third solar energy are:
phase of expansion of its regasification facilities in i. simplifying market rules and regulations to
Sep 2017, bringing its regasification capacity from lower business costs and increase flexibility for
six to 11 million tonnes; and consumers;
ii. exploring other options such as electricity import ii. allowing small consumers to inject solar energy to
and renewable energy. the grid for sale; and
iii. investing in research, development and
demonstration projects such as the ESS test-bed
to stabilise and increase adoption of green energy.
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c) Proving Customers with more Choices i. flexible and competitive pricing by fully opening
To increase competition in the electricity retail market the retail market known as OEM; and
and empower consumers, Singapore is adopting the ii. introducing utilities apps and smart metering
following measures: solutions to encourage consumers to play a more
active role in managing their power demand.
Overview of Electricity Market
Liberalisation of electricity market The Energy Market Authority (EMA), a statutory board
under the Ministry of Trade and Industry (MTI), is the
Singapore’s electricity market, comprising the generation, regulator of the Singapore electricity market. EMA ensures
transmission and distribution, and retail segments, was that electricity is sold to consumers at competitive
vertically integrated prior to 2001. In 2001, the electricity prices. The Power System Operator (PSO), a division in
market was restructured to promote the efficient supply EMA, is responsible for the safe operation and dispatch
of competitively-priced electricity. The generation and of generation facilities in the electricity market; outage
retail segments were separated from the transmission and and emergency planning; and security of Singapore’s
distribution segment and are now privately owned. transmission system. The Energy Market Company (EMC)
is the market operator that operates and administers the
wholesale electricity market.
Structure of Electricity Market
The structure of Singapore’s liberalised electricity market is shown below:
Figure 1: Singapore’s Liberalised Electricity Market

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C EPS I 2018
a) Generation The vesting contract price is set based on the Long Run
Marginal Cost (LRMC) of the most efficient generation
All power generation companies (gencos) with technology that accounts for at least 25% of the system
any facility having a name-plate rating of 10 MW demand in Singapore. To ensure the vesting contracts
or more must be licensed by EMA as a generation reflect the prevailing market conditions, EMA reviews
licensee. Gencos have to bid to sell electricity in the vesting parameters every two years or whenever
the wholesale electricity market every half-hour. necessary.
Mandatory participation ensures that all generators
of any significant size are subject to competition to The vesting contract level has been progressively
secure dispatch of their respective generating units in reduced as more gencos enter the wholesale market.
the wholesale market. There are now 6 major gencos Currently, 22.5% of the system demand is now settled
in Singapore. The list of gencos and their licenced based on fixed prices, down from 55% in 2004. This
capacity are shown in Appendix I. will be reduced further to 20% in 2019.
Vesting contracts to control market power Healthy reserve margin
To control the market power of the major gencos, In Singapore, a spinning reserve, which is the amount
vesting contracts were introduced on 1 Jan 2004. by which the total generation capacity exceeds the
These financial contracts commit the gencos to annual electricity peak demand is imposed. Singapore’s
sell specified quantities for electricity for various power system has a healthy reserve margin in excess
periods at prices stipulated by EMA. This removes the of the minimum 30% reserve margin to maintain
incentives for gencos to exercise their market power system security. The minimum requirement caters
by withholding capacity to push up spot prices in the to scheduled maintenance and forced outages of
wholesale market. generating units in the power system. From 1 Oct
2017, the spinning reserve requirement was enhanced
to improve power system security.
Figure 2: Electricity Generation, Consumption and Peak Demand
GWh MW
60,000 13,349 13,348 13,348 14,000
12,884
12,422 13,000
55,000 12,000
10,810 51,587 52,225
9,928 9,913 49,310 50,272 49,437 11,000
50,000
46,936 47,964 47,514 48,627 10,000
46,403
45,367 45,999 44,949
45,000 9,000
42,252 43,007 44,201 8,000
40,000
7,000
6,960 7,149 7,188
6,570 6,639 6,814 6,869 6,000
35,000 6,494
5,000
30,000 4,000
2010 2011 2012 2013 2014 2015 2016 2017
Source: EMA Generation (GWh) Consumption (GWh) Peak Demand (MW) Generation Capacity (MW)
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b) Transmission and Distribution SPPA’s major transmission and distribution assets (as at
31 Mar 2017) are shown below:
SP PowerAssets (SPPA) is the sole Transmission
Licensee that owns the electricity transmission and Table 1: Major Transmission and Distribution Assets
distribution network in Singapore. SPPA has appointed
SP PowerGrid (SPPG) to manage and operate SPPA’s
Asset Value
assets. EMA has regulated SPPG as a Transmission
Agent Licensee. Cable length in service 27,300 km
Number of 400kV substations 4
EMA regulates the network business to ensure: Number of 230kV substations 22
i. non-discriminatory access to industry players;
Number of 66kV substations 103
ii. fair charges for use of the network; and
iii. high reliability and service level. Number of 22kV substations 6,800
Number of 6.6kV substations 4,600
Our electricity network is classified into the following Total network asset value S$8.9bn
voltage segments:
Source: SP Group
i. Ultra High Tension (230kV and above): consumers
receiving electricity supply at this level include the
oil refineries and petrochemical companies;
Reliable and efficient network performance
ii. Extra High Tension (66kV): consumers receiving
electricity supply at this level include the large
SP Group has built one of the world’s most reliable
chemicals and electronics companies;
electricity network to power the Singapore economy.
iii. High Tension (22kV and 6.6kV): consumers
Singapore has one of the shortest and fewest
receiving electricity supply at this level include the
electricity outages of cities worldwide as measured
large manufacturing companies and commercial
by the System Average Interruption Duration Index
complexes; and
(SAIDI) and System Average Interruption Frequency
iv. Low Tension (400V or 230V): consumers receiving
Index (SAIFI). SAIDI measures the average duration of
electricity supply at this level include Small and
unplanned interruptions a customer experiences in
Medium Enterprises, and households.
a year, while SAIFI measures the average number of
unplanned interruptions a customer experiences in a
year.
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C EPS I 2018
Figure 3: SAIDI Figure 4: SAIFI
Minutes Interruptions
0.80 0.045
0.74
0.70 0.040
0.70 0.040
0.60 0.035
0.56
0.030
0.50
0.42 0.025
0.40 0.020
0.34 0.020
0.28
0.30
0.25 0.015
0.20
0.19 0.009 0.009 0.008 0.011 0.008
0.010
0.006
0.10 0.005
0.00 0.000
6
6
4
4
5
5
3
3
8
8
7
7
1
1
2
2
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
10
10
16
16
14
14
12
12
13
13
15
15
17
17
11
11
FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
Source: SP Group Source: SP Group
This high level of network reliability is achieved through continued investments in new systems and infrastructure, and
upgrading of aging assets to meet Singapore’s electricity needs. As a result, customers enjoy high network performance
at competitive prices.
Measures to enhance reliability

Figure 5: The cross-island Transmission Cable Tunnel
To enhance the reliability of the network, SP Group is project offers a cost-effective long-term solution for
building two underground cable tunnels across Singapore reliable electricity supply in Singapore
to house the main transmission cables. When completed,
the cable tunnels, which are equipped with the latest high-
tech sensors, will:
i. enhance the reliability and security of our electricity

network;
ii. equip Singapore with the infrastructure to meet the
rise in electricity demand;
iii. facilitate the efficient installation, maintenance and
replacement of the underground electricity cables;
iv. minimise congestion of underground utility services;
and
v. minimise inconvenience to the public.
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Comparison with other utilities on quality of supply
Singapore was ranked third out of 137 countries on quality of electricity supply. The healthy pipeline of foreign
investment commitments is testament to Singapore’s attractiveness as an investment destination due in part to its
reliable infrastructure including the electricity network.
Figure 6: Quality of Electricity Supply
Score
7.0
6.9 6.9 6.9
6.9
6.9
6.8 6.8 6.8 6.8
6.8
6.8
6.7 6.7 6.7
6.7
6.7
6.6
Norway Switzerland Singapore Hong Kong Denmark Netherlands France Luxembourg Finland Japan
SAR
Source: World Competitiveness Report 2017 - 2018
a) Retail Market consumers may purchase electricity from a retail

electricity licensee under a bilateral contract, from an
In the electricity retail market, market participant MSSL or directly from the wholesale electricity market.
retailers register with the market operator, EMC, to The aim of contestability is to give consumers the right
purchase electricity directly from the wholesale market. to choose and therefore, benefit from competition.
Non-market participant retailers buy electricity via SPS.
Since 2001, EMA has progressively opened up the
SPS holds a Market Support Services Licence (MSSL) to retail market to competition to give consumers more
provide market support services to both contestable options to manage their electricity bills. The thresholds
and non-contestable sectors, such as meter reading for contestability for non-domestic customers were
and meter data management services. progressively lowered in each phase. Eligible non-
domestic customers could choose whether to become
Opening up the retail market to contestability (OEM) contestable.
Contestability is the ability of an electricity consumer to

choose which entity to buy electricity from. Contestable
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C EPS I 2018
Schedule of Retail Market Liberalisation
Table 2: Annual Electricity Consumption by Segment
Effective Date Customer Segment Annual Electricity Consumption

Ultra-High Tension, Extra High
1 Apr 01 More than 2MW
Tension and High Tension
1 Jan 03 Equal to 2MW
High Tension
1 Jun 03 Less than 2MW
24 Aug 03 More than 240MWh
21 Dec 03 120 MWh – 240MWh
1 Apr 14 At least 96MWh
Low Tension Non-domestic
1 Oct 14 At least 48MWh
1 Jul 15 At least 24MWh
1 Apr 18 (Pilot phase) All eligible consumers
Source: EMA
In Apr 2018, the pilot OEM was launched, giving targeted b) retailers are offering various options to entice
households and businesses the opportunity to buy consumers including:
electricity from a retailer of their choice. Fourteen retailers i. discounts on the regulated tariff;
have been authorised by the EMA to offer electricity plans ii. short-term trial packages; and
during this pilot phase. iii. clean energy subscription plans for
environmentally-conscious consumers.
EMA plans to fully open the retail market to competition
in the second half of 2018. Under this final phase, the Pricing Options
remaining 1.4 million consumers, mainly households, will
be given the option to choose their electricity retailer. Contestable consumers can choose to buy electricity
from electricity retailers under customised price plans
Competition heating up among retailers or from wholesalers based on half-hourly prices. Non-
contestable consumers can only buy electricity from SPS
Competition in the electricity retail market is heating up: at the regulated tariff.
a) independent retailers are entering the market and
leveraging on technology to gain a competitive edge Electricity Futures Market
over the incumbents. There are now more than 30
electricity retailers. The list of existing retailers is given An electricity futures market, was launched in Apr 2015 to
in Appendix II; and enhance competition in the wholesale and retail markets.
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C EPS I 2018
It allows the trading of standardised contracts of electricity Electricity Supply Capacity and Demand
products into the future at specified prices. It enables:
a) electricity generators to better manage their a) Electricity Supply Capacity Outlook

commercial and operational risks;
b) retailers to hedge their price risks and therefore, provide The projected electricity supply capacity over the next
innovative and competitively-priced packages; and 4 years is shown below:
c) consumers benefit from this enhanced competition in
terms of lower prices and new retail products. Figure 7: Electricity Supply Capacity
The current market making scheme, supported by the

Forward Sales Contract (FSC) scheme, will end on 31 Jul MW
2018. To enhance the development of an electricity futures
14,000
market, market makers will be incentivised for a further 3
years from 1 Aug 2018 - 31 Jul 2021 under the Futures
13,500
Incentive Scheme (FIS). The FIS will consist of 2 different 13,500
13,348
phases, each for a duration of 1.5 years:
13,000
a) the first phase (1st FIS) will run from 1 Aug 2018 -
31 Jan 2020; and
b) the second phase (2nd FIS) from 1 February 2020 - 12,500
31 July 2021.
11,900
A Request for Proposal for the 1st FIS was issued in Mar 12,000
2018.
11,400 11,400
11,500
Demand Response (DR) Programme
The DR programme, which was rolled out in Apr 2016, 11,000

enables all contestable customers to reduce their
electricity demand voluntarily in exchange for lower
10,500
electricity prices. It:
a) provides an option for consumers to manage their
electricity usage in response to price signals; 10,000
b) helps to lower wholesale electricity prices during peak 2017 2018F 2019F 2020F 2021F
periods; and
c) improves overall system efficiency and reliability. Source: EMA
In Oct 17, Diamond Energy became the first retailer to

obtain approval from EMC to manage demand response
capacity.
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b) Electricity Demand Outlook
Between 2007 and 2017, Singapore’s system demand grew at a compounded annual growth rate (CAGR) of 2.6%,
while the system peak demand grew at a CAGR of 1.9%.
The electricity demand for 2017 is shown in the table below:
Total Power Consumption 2017 Power Consumption

Sector as of 2017 (GWh) Breakdown (%)
Industrial 21,034 42.5
Commercial 21,107 42.7
Residential 7,295 14.8
Total 49,437 100.0
Source: EMA
The projected annual system demand and system peak demand are expected to grow at a CAGR of 1.3 – 1.9%
between 2018 and 2028.
Figure 8: Annual System Demand Figure 9: Annual System Peak Demand
GWh Source: EMA MW Source: EMA

70,000 10,000
65,000
9,000
60,000
8,000
55,000
50,000 7,000
45,000
6,000
40,000
5,000
35,000
30,000 4,000
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018F
2019F
2020F
2021F
2022F
2023F
2024F
2025F
2026F
2027F
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018F
2019F
2020F
2021F
2022F
2023F
2024F
2025F
2026F
2027F
Minimum Maximum Minimum Maximum
Based on the projected electricity demand and supply capacity, the reserve margin over the next 4 years is expected
to remain above 30%.
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C EPS I 2018
Tariff Structure
a) Tariff Breakdown b) Pricing Principle
Electricity tariffs for contestable consumers are The liberalisation of the electricity market has resulted in
determined by their price plans and services from their competitive and affordable electricity prices in Singapore.
retailers. While we aim to keep electricity prices affordable, we do
not subsidise electricity consumption as this will distort
Electricity tariffs for non-contestable consumers are the market and lowers incentives for users to conserve
regulated by EMA and revised quarterly to reflect energy. Singapore adopts the cost-reflective user-pay
the actual electricity cost. The tariff comprises 2 key principle.
components:
i. fuel cost, which is tied to the cost of natural gas; c) Settlement Schemes
and
ii. non-fuel cost, which is the cost of generating and There are several settlement schemes for both
delivering electricity to consumers. This includes contestable and non-contestable consumers with
the MSSL and administration fees. embedded generation:
i. Simplified Credit Scheme: Low Tension (LT) Non-
The tariffs for non-contestable consumers for 1 Apr – contestable Consumers (NCCs) with less than
30 Jun 2018 are at Appendix III. 1MWac embedded solar PV systems can export
excess solar energy not internally consumed back to
Figure 10: Electricity Tariff Structure the grid. They will receive payment from SPS by way
of credit adjustment to the monthly electricity bill;
ii. Non-renewables Embedded Generation Scheme:
Contestable Consumers whose embedded
generators (EG) are registered with EMC are eligible
for net treatment for non-reserve market charges if
they consume at least 50% of the annual electricity
Market Admin &
generated. Net treatment for non-reserve market
charges means that charges are not levied on the
PSO Fee
amount of electricity generated and consumed
MSS Fee onsite;
iii. Intermittent Generation Scheme: Contestable
Network Costs Consumers whose embedded generators produce
intermittent power output will be paid for their net
Energy Costs generation export to the grid; and
iv. Enhanced Central Intermediary Scheme: Eligible
Contestable Consumers (CCs) whose embedded
generation capacity is less than 10MW are not
required to register with EMC as a Market Participant
to get paid for injecting its excess EG output into the
grid. The payment will be through SP Group at the
Source: EMA prevailing half-hourly wholesale energy price. Only
those under Schemes (ii) and (iii) above are eligible
for this.
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C EPS I 2018
3 Regulations
The regulations which industry players in Singapore are c) Codes of Practices which sets out the minimum
obliged to comply include: conditions which the Licensees must meet when
a) the Electricity Act which aims to create a competitive carrying out their obligations. The licences issued by
market framework for the electricity industry, and EMA include:
provides for the safety, technical and economic i. Transmission licence;
regulation of the generation, transmission, supply and ii. Transmission Agent licence;
use of electricity; iii. Market company licence;
iv. Market support services licence;
b) the Singapore Electricity Market Rules which governs v. Generation licences;
the wholesale operations of the electricity market and vi. Wholesaler licences; and
activities between market participants and EMC; and vii. Retailer licences.
4 Measures to Reduce Carbon Emissions
Climate change is one of the biggest environmental a) adopting clean energy technologies;
challenges facing the world today. Singapore, similar to b) improving energy efficiency across all sectors; and
other countries, is also vulnerable to the effects of global c) pursuing sustainable energy initiatives and trials.
warming. In 2016, Singapore ratified the Paris Agreement
on Climate Change, joining nearly 200 nations in doing so. The adoption of cleaner technologies includes:
The deal aims to limit the rise in global temperature to well
below 2°C above pre-industrial levels and, if possible, at a) Cleaner Fuel Mix
1.5°C. The agreement entered into force on 4 Nov 2016.
As a country with no indigenous energy resources,
Singapore has pledged to reduce its emissions intensity by Singapore relies on imported fuel to generate
36% from 2005 levels by 2030 and stabilise emissions with electricity to support its continued economic growth.
the aim of peaking around 2030. To meet our commitments About 95% of Singapore’s electricity is generated from
under the Paris Agreement on Climate Change, Singapore natural gas, up from 61% in 2003. With the completion
is adopting a multi-prong approach to reduce greenhouse of Singapore’s first LNG terminal on Jurong Island in
(GHG) emissions by: May 2013, Singapore is able to import LNG to diversify
and secure its energy sources.
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Figure 11: Fuel Mix for Electricity Generation
100% 3 3 3 4 4 4 4 4
90%
80%
70%
77 78
60%
84 92
50%
95 95 95 95
40%
30%
20%
20 19
10%
13
5 1 1 1 1
0%
2010 2011 2012 2013 2014 2015 2016 2017
Source: EMA Petroleum Products Natural Gas Others
b) Combined Cycle Power Plants energy as a renewable energy source. Technological

breakthroughs are expected to continuously lower the
When Singapore’s electricity market was restructured, cost of solar panels, improving the viability to install
many power generation companies switched to the them.
more efficient combined cycle gas turbines (CCGT)
for electricity generation. Currently, about 78% of Market interest in solar energy has grown significantly.
our licence generation capacity is the more efficient The total installed solar PV capacity has increased
combined cycle gas turbines. from 1.9MWp in 2009 to 143.3MWp by end-2017.
The strong growth of solar is expected to continue as
c) Encouraging Solar Energy technology improves and costs go down. Singapore
plans to raise its solar power capacity to 350MWp by
Renewable energy sources are expected to make 2020 and 1GWp beyond 2020, representing about 15%
more headway due to environmental concerns, of peak demand.
technological advances and new financing models.
Singapore continues to exploit the potential of solar
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Figure 12: Grid-Connected Solar Photovoltaic Systems
Installed Capacity MWp Number of Installations

160 2,500
140
2,109
2,000
120
1,826 143.3
125.6
100
1,500
80
1,000
60
943
635 59.7
40
388 500
294 33.1
20
169
59 106 15.3
10.1
0 1.9 3.8 5.9 0
2009 2010 2011 2012 2013 2014 2015 2016 2017
Source: EMA Number of Installations Installed Capacity (MWp)
Singapore is pursuing many initiatives to improve energy ii. the Carbon Pricing Bill (Bill No. 2/2018) to
efficiency across all sectors: introduce carbon tax has been passed. It sets
out the framework for implementing the carbon
a) Legislative Changes tax including the measurement, reporting and
verification requirements. The carbon tax will be
i. the Energy Conservation Act (ECA) has been imposed on large direct emitters producing over
enhanced: 25,000 tonnes of carbon dioxide equivalent of
• mandatory GHG measurement and reporting GHG a yearfrom 2019. It is expected to affect some
requirements for top industrial emitters; 30 to 40 firms, mainly in the power generation,
• enhanced energy efficiency measures for new petrochemical and semiconductor sectors. These
and existing facilities; and large emitters will be charged S$5 per tonne
• Minimum Energy Performance Standards (MEPS) from 2019. The tax rate will be reviewed by 2023,
for common industrial equipment and systems; with the intention of increasing it to between
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S$10 and S$15 per tonne by 2030. The carbon

Figure 13: Outdoor Cooling Innovation
tax will take the form of a fixed-price credits-
based mechanism. This means that the affected
facilities will have to pay the carbon tax by buying
and surrendering carbon credits corresponding
to their greenhouse gas emissions, rather than
through direct payment. These carbon credits can
only be bought from the National Energy Agency
(NEA) at a fixed price;
iii. changes to the diesel tax system were implemented
in 2017; and
iv. a new emissions scheme for vehicles from 2018
to include four other pollutants on top of carbon
dioxide.
b) Promotion of District Cooling
District cooling is an innovative and economically

efficient urban utility service involving the centralised
production of chilled water and piped to commercial
buildings in the vicinity for air-conditioning purposes.
Singapore District Cooling (SDC) under the SP Group
now operates the largest fully underground district
cooling network in the world. The more energy-
efficient district cooling system: Sources: SP Group and ST Engineering
i. provides centralised cooling to the Marina Bay
business district; and c) Funding for Energy-Efficient Technologies, and
ii. eliminates space requirements and upfront costs Research and Development (R&D):
for customers’ own on-site chillers and roof-top
spaces for cooling towers. i. under the Research, Innovation and Enterprise
2020 (RIE2020) plan, EMA will focus R&D efforts
The network may be extended in the Marina Bay area on power utilities, energy storage and smart grids;
and will be built in the Jurong Lake District. and
ii. to improve the resilience of Singapore’s cyber-
An innovation that builds on SP Group’s district cooling physical power systems and energy markets,
network is the outdoor cooling system, which saves EMA launched a competitive grant call on 8 May
on electricity consumption. 2017 to seek R&D proposals that employ the
use of technologies such as big data, artificial
intelligence and machine learning to meet the
above challenges.
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d) Education: ii. a new incineration research facility will be built in

Tuas by 2018 to turn waste into heat and synthetic
i. SPS launched a new mobile application and gas, which can then be bottled and sold, or
updated the web portal to provide consumers with pumped to a power plant to generate electricity.
more information on their energy consumption
and to enable comparison with their neighbours; b) Renewable Energy Test-Bedding
and
ii. award of Energy-Industry Scholarships to develop Singapore has completed the first stages of its
and nurture talent for the power sector. renewable energy test beds:
i. the Public Utilities Board is studying the possibility
e) Push for Greener Vehicles: of installing solar panels at its reservoirs,
waterworks and water reclamation plants to
i. as at end-2017, charging points had already been diversify its energy sources; and
installed at 42 locations islandwide to support the ii. the first micro-grid has been deployed on Pulau
electric vehicle (EV) sharing programme. A total Semakau. The infrastructure on the island is
of 2,000 charging points dispersed across 500 powered by solar energy instead of diesel.
locations will be progressively installed by 2020 Renewable Energy Integration Demonstrator
by the operator, BlueSG; and Singapore (Reids) on Pulau Semakau will build
ii. an 8-year trial is being carried out as part of three other micro-grids to test how various micro-
Singapore’s EV Phase 2 Test-bed to study the grids interact with each other.
feasibility of EV-fleet business models.
With the push for greener vehicles, the electricity c) ESS Test-Bed
network must be ready to cope with increased
charging points to meet demand. SP Group and EMA are test-bedding a large-scale
ESS to facilitate greater deployment of solar energy
Singapore is also pursuing sustainable energy initiatives and increase resilience of the grid. The test-bed is
and trials: expected to be operational for three years at two
substation locations.
a) Sustainable Energy Initiatives
i. LTA plans to install a smarter and more energy-

efficient street lighting system island-wide by
2022; and
5 Advanced Metering Infrastructure (AMI) and Smart Grid Deployment
SP Group developed and rolled out the Advanced Metering with the Network Management System (NMS). This helps
Infrastructure (AMI) on 1 Apr 2014 to support the gradual to facilitate:
liberalisation of the electricity retail market. a) upgrading of meter firmware; and
b) monitoring of meter, communications-related events
The smart meters provide half-hourly interval meter and supply outages.
readings, load profiling, tamper alarms and communicate
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C EPS I 2018
The half-hour interval data are polled every four hours. However, when the electricity retail market is fully opened
The performance standard for the successful readback is later this year, residential consumers can opt to install
99.5%. The AMI network is able to self-heal i.e. if any of the smart meters for half-hourly consumption reading, or use
network devices is down, all the meters will automatically the Static Residential Load Profile (SRLP). SP Group expects
hook on to another secondary network device that it has to deploy an additional 500,000 smart meters in the next
communication with. five years.
Commercial and Industrial consumers are required to

install smart meters when applying for contestability.
6 Major Challenges
The fast-changing energy landscape has posed some cyberattacks. The CyberSecurity Act will apply to
challenges to the industry. These include: organisations that are designated as operating CII
a) Impact on grid reliability and pricing: Increasing in Singapore including those in the energy sector.
adoption of intermittent renewable energy source Under the Act, CII owners will be required to report
such as solar power exposes the electricity grid to certain cybersecurity incidents, undertake periodic
voltage fluctuations. This may necessitate investments cybersecurity audits and risk assessments, and take
to harden the network. While the use of renewable remedial actions for deficiencies in security measures;
energy is encouraged, the cost-reflective principle and
of user-pay should be maintained. Customers should
not be made to subsidise the incremental costs of d) Changes to traditional roles of consumers and grid
providing standby power and hardening the network operator: Increasing decentralisation, digitalisation
due to grid instability issues caused by intermittent and distributed generation are changing the way we
generation sources; generate, distribute and use energy.
b) National energy and grid security: Singapore remains The implications include:
vulnerable to energy supply disruptions despite i. pricing signals may not be sufficient to deliver efficient
continuing efforts to diversify its energy sources. Grid and timely supply;
security is also a key consideration with the increasing ii. the grid will require active management, monitoring
trend of distributed generation and disruptive and control to ensure system reliability as more
technologies. Hence, protecting the power grid and distributed, intermittent generation is added;
ensuring a reliable energy supply remain industry- iii. the blurring of lines between the role of a regulated
wide priorities; natural monopoly versus the competitive generation
and retail suppliers versus the consumers;
c) Cybersecurity threats and consumer privacy issues: iv. the ability to provide consumers with competitive
Increasing market openness, transparency and pricing; and
promoting new customer choices introduces new v. the need for flexible government policies, tariff
cybersecurity issues and also threatens consumer structures and incentive schemes to drive efficient
privacy. The CyberSecurity Bill (Bill No. 2/18) was investment decisions and integration of new business
introduced to strengthen the protection of computer models.
systems providing essential services against
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7 Key Developments/Innovations Deployed by Singapore’s Utilities
To better cope with the challenges posed by disruptive Market developments

technologies such as solar panels, ESS and electric cars, a) an electricity futures market was launched in Apr
Singapore has also been engaging and learning from best 2015 to enhance competition in the wholesale and
practices in the international arena: retail markets. The current market making scheme,
a) in Jan 2017, SP Group launched the Free Electrons supported by the Forward Sales Contract (FSC)
Global Accelerator programme, aimed at bringing scheme, will end on 31 Jul 2018. To enhance the
together utilities and startups to innovate and co- development of an electricity futures market, market
create the next generation of ideas and clean energy makers will be incentivised for a further 3 years from
solutions for the industry; 1 Aug 2018 - 31 Jul 2021 under the FIS. The FIS will
consist of 2 different phases, each for a duration of 1.5
b) SP Group is partnering General Electric to create a years:
digital replica of the Singapore grid, or "digital twin", i. the first phase (1st FIS) will run from 1 Aug 2018
to enhance the network performance and reduce - 31 Jan 2020; and
unplanned downtime; and ii. the second phase (2nd FIS) from 1 February 2020
- 31 July 2021.
c) SP Group and Siemens have signed a collaboration
agreement to: A Request for Proposal for the 1st FIS was launched in Mar
i. create a software platform for SP Group's 24/7 2018;
control centres to enable more robust planning, a) a framework for a regulatory sandbox for the energy
surveillance and predictive maintenance of sector was finalised to allow testing of new products
Singapore's electricity network; and and services outside of Singapore’s regulatory system
ii. develop technologies for new urban electricity by leveraging on new technology or applying existing
microgrids that are suited for Singapore's tropical technology in novel ways;
climate, supporting the growth of residential b) the full liberalisation of the electricity retail market, also
estates and commercial and industrial hubs. The known as the OEM, will be rolled out by the second
urban microgrids will contribute to a sustainable half of 2018 to allow the remaining 1.4m consumers,
energy future for Singapore, as consumers can mainly households, to exercise their choice of retailers
incorporate renewable sources of energy, thereby in the purchase of electricity;
increasing energy efficiency, lowering carbon c) an SP Utilities mobile app was developed to give
emissions and reducing cost. customers a one-stop solution at their fingertips; and
d) a new SP bill was introduced to help customers track
their past consumption, compare power usage and
receive tips on saving energy.
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C EPS I 2018
Figure 14: SP Utilities Mobile App Figure 15: New SP Bill Helps Customers Track Their
Electricity Consumption
Technology deployment SP Group and EMA are test-bedding a large-scale

ESS to facilitate greater deployment of solar energy
a) Singapore’s Land Transport Authority (LTA) launched and increase resilience of the grid. Different energy
its first EV-sharing programme to move towards a storage technologies such as lithium-ion batteries and
greener and more sustainable transport system. To redox flow batteries will be deployed at substations to
support the programme, EV charging stations were determine the most suitable one for Singapore.
installed at 42 locations islandwide as at end-2017.
c) Testing the Low Tension (LT) network monitoring
Technology test-bedding system:
SP Group has partnered with Switzerland’s Depsys
a) Test-bedding of integrated advanced metering to pilot the deployment of a LT network monitoring
solutions: system. It aims to monitor LT network parameters to
Singapore is tapping on technological advances in manage the impact of PV and EV charging stations on
smart metering solutions. EMA is conducting a trial the LT network; and
with SP Group and PUB on smart meters to develop
and test technologies that will allow electricity, gas d) Pilot Demand Side Management (DSM) programme to
and water meters to be read remotely in a reliable and optimise consumption:
cost-effective way. The smart solutions will enhance Project OptiWatt is a pilot DSM programme which aims
productivity and provide consumers with timely to test relevant technologies and business models that
information on the energy consumption. can reduce pressure on the grid during periods of
peak demand. SP Power Assets, as the grid operator,
b) Test-bedding of large-scale Energy Storage Systems will explore how DSM technologies and initiatives can
(ESS): reduce peak demand to better manage network costs.
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C EPS I 2018
Figure 16: Demand-Side Management
Be rewarded for reducing your

05 electricity consumption during
periods of high energy prices.
Demand Response
Programme
04 01
Solar Energy Storage

Energy Demand-Side System
Management
Show your Since 2015,

commitment batteries can
to sustainability participate in
by considering 03 02 the frequency
renewable regulation market.
energy options. Full Retail Interruptible Load
Competition Programme
From 2H 2018, all Diversify your revenue

consumers can choose their streams by being paid to be
electricity plans to cater to on standby in response to
their needs. system contingency events.
Source: EMA
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C EPS I 2018
APPENDIX I
Licenced Generation Capacity by Generation Company (as of 1Q17)
Licensed Capacity
Power Plant Type Breakdown Generation Company (MW)
Senoko Energy 2,807
YTL PowerSeraya 1,472
Tuas Power 1,979
Combined Cycle Gas Turbine SembCorp Cogen 1,189

78%
(CCGT)/Cogen/Tri-gen Keppel Merlimau Cogen 1,310
PacificLight Energy 800
Tuaspring 395
Others 403
Senoko Energy 493
YTL PowerSeraya 1,448
Steam Turbine 19%
Tuas Power 600
Others 15
Open Cycle Gas Turbine
1% YTL PowerSeraya 180
(OCGT)
National Environment Agency 180
Waste-to-Energy 2% Senoko Waste-to-Energy 55
Keppel Seghers Tuas Waste-to-Energy 22
Total 100% 13,348
Source: EMA
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APPENDIX II
Existing Electricity Retail Licensees
1 Keppel Electric Pte Ltd 16 Charis Electric Pte Ltd

2 SembCorp Power Pte Ltd 17 Union Power Pte Ltd
3 Tuas Power Supply Pte Ltd 18 Cleantech Solar Singapore Assets Pte Ltd
4 Senoko Energy Supply Pte Ltd 19 Energy Supply Solutions Pte Ltd
5 Seraya Energy Pte Ltd 20 Just Electric Pte Ltd
6 PacificLight Energy Pte Ltd 21 SmartCity Energy Pte Ltd
7 Diamond Energy Merchants Pte Ltd 22 MyElectricity Pte Ltd
8 Hyflux Energy Pte Ltd 23 ValuEnergy Pte Ltd
9 Red Dot Power Pte Ltd 24 SilverCloud Energy Pte Ltd
10 Sun Electric Power Pte Ltd 25 Sun City Pte Ltd
11 Sunseap Energy Pte Ltd 26 Hean Nerng Corporation Pte Ltd
12 Ohm Energy Pte Ltd 27 Peerer Energy Pte Ltd
13 Best Electricity Supply Pte Ltd 28 Ion Energy Pte Ltd
14 I Switch Pte Ltd 29 Horizon Sun Services Pte Ltd
15 Environmental Solutions (Asia) Pte Ltd 30 UGS Energy Pte Ltd
31 GashubUnited Utility Pte Ltd
APPENDIX III
Electricity Tariffs for 1 Apr – 30 Jun 18
Existing Tariff New Tariff New Tariff

[without GST] [without GST] [with 7% GST]
LOW TENSION SUPPLIES, DOMESTIC
21.56 22.15 23.70
All units,¢/kWh
LOW TENSION SUPPLIES, NON-DOMESTIC
21.56 22.15 23.70
All units,¢/kWh
HIGH TENSION SMALL (HTS) SUPPLIES
Contracted Capacity Charge 8.36 8.58 9.18
$/kW/month
Uncontracted Capacity Charge 12.54 12.87 13.77

$/chargeable kW/month
kWh charge, ¢/kWh
Peak period (7.00am to 11.00pm) 18.88 19.56 20.93

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APPENDIX III (CON’T )
Electricity Tariffs for 1 Apr – 30 Jun 18 (con’t)
Existing Tariff New Tariff New Tariff

[without GST] [without GST] [with 7% GST]
HIGH TENSION SMALL (HTS) SUPPLIES (Con’t)
Off-peak period (11.00pm to 7.00am) 11.37 11.77 12.59
Reactive power Charge 0.59 0.59 0.63

¢/chargeable kVARh
HIGH TENSION LARGE (HTL) SUPPLIES
$/kW/month

kWh charge, ¢/kWh
Reactive power charge 0.59 0.59 0.63

¢/chargeable kVARh
EXTRA HIGH TENSION (EHT) SUPPLIES
$/kW/month

kWh charge, ¢/kWh
Reactive power charge 0.48 0.48 0.51

¢/chargeable kVARh
298
SRI LANKA C EPS I 2018
Area: Population: Official Languages:
65,610 21.4 Sinhala,

km million
Tamil,
2
Currency: Literacy rate:

English
Sri 95%
Lankan Percentage of Population
Electrified:
rupee
Economic Background:
Agriculture,
99% (est)
(LKR) Remarks:
Industries, *1USD=150 LKR
Tourism
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C EPS I 2018
Sri Lanka, known as the pearl of the Indian Ocean is an island rich in history and culture. Its geographical location and
deep harbours have made the island of great strategic importance since the ancient Silk Road period. Written history of
Sri Lanka records a civilisation stretching back more than 2,500 years. Sri Lanka was known as Ceylon under British Rule
and gained independence in 1948. In 1972, it became a Democratic Socialist Republic. Sri Jayewardenepura Kotte is Sri
Lanka‘s administrative capital, while Colombo serves as the commercial hub. Sri Lanka has a land area of 65,610km2 and
a population of 21.4 million.
Figure 1: Map of Sri Lanka

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C EPS I 2018
Board (CEB), which includes 1,391MW of hydro and 1,504MW of thermal

Figure 2: National Flag of Sri Lanka
generation capacity. The remaining dispatchable capacity, which is thermal
plants, is owned by independent power producers (IPPs).
Figure 3: A distant view of the mountain ‘Adams Peak’ over

Maussakelle Reservoir
From 2012 to 2017, Sri Lanka’s real

GDP growth fluctuated from 9.1% to
3.1%. Sri Lanka’s total nominal GDP
at current market prices at the end of
2017 stood at USD87.2 billion with per
capita GDP at USD4,065. Demand for
electricity typically grows in tandem
with the growth of the country’s
economy. By the end of December
2017, approximately 99.5% of the total
population had access to electricity
from the national electricity grid and
the implementation of the planned
electrification schemes will enable
Figure 4: Paddy cultivation in Sri Lanka. Rice is the staple diet of the people
more people to gain access. Over
of Sri Lanka
the past 20 years, Sri Lanka’s need for
electricity has grown at an average
annual rate of around 5% to 6% and
this trend is expected to continue in
the foreseeable future. The current
installed power generation capacity is
4,087MW, of which the dispatchable
capacity is 3,500MW excluding other
renewable energy sources. The
majority of the dispatchable capacity
is owned by the Ceylon Electricity
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Figure 5: Coconut cultivation in Sri Lanka. Aside from coconut oil, every part of coconut tree is used for
various purposes

Figure 6: Power Consumption in 2017 (MWh)
The combined consumption of

electricity by the industrial and
commercial (general purpose, hotel,
30% 32%
government) sectors is greater than
the consumption by the domestic
sector and supports Sri Lanka’s
ambitious GDP growth projections.
The average per capita electricity Industrial - 4,323,545MWh
consumption in 2017 was 626kWh Residential & Religious - 5,093,875MWh
per person. 38% Commercial & Other - 3,940,617MWh
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National Energy Policy Apart from this, initiatives have been launched in oil
exploration with the prime intention of harnessing potential
Sri Lanka’s National Energy Policy and Strategies was petroleum resources in the Mannar Basin.
published in June 2008 and focuses on nine major policy
elements and details the implementing strategies, specific Almost all hydro potential is already fully utilised and further
targets, milestones with institutional responsibilities which exploitation of hydro resources is becoming increasingly
govern the development and management of the energy difficult owing to the social and/or environmental impacts
sector. The major policy elements include; associated with large-scale development. Apart from
hydro, there is considerable potential for wind and solar
• Providing basic energy needs power development. Scattered developments of small
• Ensuring energy security scale solar power plants have already been initiated
• Promoting energy efficiency and conservation and feasibility studies carried out to develop the solar
• Promoting indigenous resources parks concept.
• Adopting an appropriate pricing policy
Overview of Electricity Market Structures
• Enhancing energy sector management capacity
• Consumer protection and ensuring a level playing field The Sri Lankan electricity market was based on the single-
• Enhancing the quality of energy services buyer model. In 2009, previously vertically integrated
• Protection from adverse environmental impacts of national electricity utility, Ceylon Electricity Board (CEB) was
energy facilities functionally unbundled when its distribution, transmission
and generation business were separately licensed. The
A new National Energy Policy and Strategies of Sri Lanka Public Utilities Commission of Sri Lanka (PUCSL) issues
is being drafted by relevant authorities, which further licences to players in the electricity industry and has issued
enhances the existing policy guidelines. licenses to five distribution entities, one transmission entity,
and to several generation licensees. The Lanka Electricity
Company (LECO) holds the distribution licence for its own
area of authority.
Biomass, or fuel wood, petroleum and hydro are the major
primary energy supply sources, which cater for Sri Lanka’s
energy demand. Per capita consumption stands at about
0.5 tonnes of oil equivalent (TOE). At present, the total
fossil fuel requirement of the country is imported either
as crude oil or as refined products and used for transport,
power generation, industry and other applications.
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Laws and Government Regulations
Sri Lanka Electricity Act No. 20 of 2009, Public Utilities Commission of Sri Lanka Act No. 35 of 2002; Ceylon Electricity
Board Act No. 17 of 1969 amended by Act No. 31 of 1969, Act No. 29 of 1979, Act No. 32 of 1988 and Act No. 20 of 2009.
Table 1: Electricity Demand and Expected Growth Rate Based on LTGEP 2018-2037
Demand Net Losses* Net Generation Peak Demand

Year Growth Rate Growth Rate
(GWh) (%) (GWh) (MW)
(%) (%)
2018 14,588 6.8% 9.88 16,188 6.8% 2,738
2019 15,583 6.8% 9.84 17,285 6.8% 2,903
2020 16,646 6.8% 9.81 18,456 6.8% 3,077
2021 17,478 5.0% 9.77 19,370 5.0% 3,208
2022 18,353 5.0% 9.73 20,331 5.0% 3,346
Electricity Exported and Imported
There is currently no tie in line with other countries for importing and exporting electricity to and from Sri Lanka. However,
the governments of India and Sri Lanka signed a memorandum of understanding (MOU) in 2010 to conduct a feasibility
study for the interconnection of the electricity grids of the two countries.
Tariff Structure
The tariff structure is divided into different sectors and categories depending on the consumers’ purpose and demand.
For the industrial and domestic sectors, the tariff structure enables consumers to choose a time-of-use tariff or time-
independent tariff.
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Energy Consumption of Sectors
In 2017, domestic consumption accounted for 37% of total energy demand, and the industrial and commercial sectors
accounted for 32% and 29% respectively. Religious purpose consumers and street lighting, which is referred as the
‘other’ category, accounted for a combined total of 2%. The pattern of energy consumption over the last 40 years is
presented below:
Figure 7: The Consumption Pattern Variation
100%
90%
80%
70%
Percentage Share (%)
60%
50%
40%
30%
20%
10%
0%
2001
2004
2007
1980
2010
1986
1989
1998
2016
1983
1992
2013
1995
1977
Year
Domestic Industrial Commercial Other

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C EPS I 2018
Table 2: Installed Capacities and Generation by Fuel Types as of 1 January 2018
Fuel Type Capacity (MW) Annual Generation (GWh)

Hydro 1,391 3,059
Thermal Oil 1,233 5,045
Thermal Coal 900 5,103
Other Renewables
Wind 131 367
Mini Hydro 354 945
Other (Biomass, Solar) 78 152
TOTAL 4,087 14,671
Figure 8: Structure of Installed Generating Capacities
CEB TRANSMISSION
CEB GENERATION INDEPENDENT POWER SMALL POWER

(2898MW) PRODUCERS (629MW) PRODUCERS (560MW)
Large Hydro pp (1391MW) Thermal oil pp (629MW) Mini Hydro pp (354MW)

& wind (3MW)
Wind pp (128.5MW)
Thermal oil pp (604MW)
Solar pp (51.4MW)
Coal Fired pp (900MW)
Biomass pp (261MW)
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Figure 9: Unloading of coal at the site of Lak Vijaya Figure 11: Sunset view of the Laxapana Power
Power Station, Puttalam; north western Sri Lanka Station. Commissioned in 1950, this is the oldest
hydropower station still in operation in Sri Lanka
Figure 10: Victoria Dam is an arch dam located

130 miles (209km) upstream of the Mahaweli Figure 12: The Chunnakam Grid Substation located
River’s mouth and 4 miles (6km) from Teldeniya. in northern Sri Lanka was commissioned in 2013 and
Its main purposes are irrigation and hydroelectric unified Sri Lanka’s power system by interconnecting
power production. It is the tallest dam in Sri Lanka the Northern and Southern power systems to the
and supports a 210MW power station, the largest National Grid which was divided during the 30-year-
hydroelectric power station in the country long conflict which ended in 2009
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C EPS I 2018
Transmission System as at 31 December 2017
Table 3: Data of Transmission Systems
Description Unit Quantity

220kV overhead transmission lines km 601
132kV overhead lines km 2,261
132kV underground cables km 51.5
220/132/33kV Grid Substations Nos 5
Nos 28
220/132/33kV Transformers
MVA 2,580
132/33 kV Grid Substations Nos 50
Nos 140
132/33kV Transformers
MVA 4,271
Outlook on Long-Term Power Generation Development Programme
Ceylon Electricity Board prepares a biennial long-term generation expansion plan which analyses the future electricity
demand and future power generation options for the period of 25 years. The Long-Term Generation Expansion Plan for
2018 to 2037 (LTGEP 2018-2037) has identified the following developments for the next decade:
Major Plant Additions (Major Hydro, Coal & Oil PP) Base Case Plan LTGEP 2018-2037
Table 4: Major Plants Addition
Year Renewable Additions Thermal Additions Thermal Retirements

100MW Furnace Oil fired Power
Plant + 70MW Furnace Oil fired
2018 - -
Power Plant + 150MW Furnace Oil
fired Power Plant
2 x 35 MW Gas Turbine
1 x 300 MW Natural Gas Fired
2019 122MW Uma Oya HPP -
Combined Cycle Power Plant –
Western Region
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C EPS I 2018
Year Renewable Additions Thermal Additions Thermal Retirements

35MW Broadlands HPP
2020 15MW Thalpitigala HPP 1 x 35MW Gas Turbine -
100MW Mannar Wind Park
1 x 300MW Natural Gas fired
4 x 17MW
2021 - Combined Cycle Power Plant –
Kelanitissa Gas Turbine
Western Region
30MW Moragolla HPP
2022 20MW Seethawaka HPP - -
20MW Gin Ganga HPP
1 x 300MW New Coal Power Plant
(Change to Supercritical will be
115MW Gas Turbine
evaluated)
2023 - 4 x 9MW Sapugaskanda
163MW Combined Cycle Power
Diesel Ext.
Plant (KPS – 2)
1 x 300MW New Coal Power Plant

4 x 18MW
2024 - (Change to Supercritical will be
Sapugaskanda Diesel
evaluated)
4 x 9MW Sapugaskanda
1 x 200MW Pump Storage 1 x 300 New Coal Power Plant
Diesel Ext.
2025 (Change to Supercritical will be
Power Plant 4 x 15MW CEB Barge
evaluated)
Power Plant
1 x 200MW Pump Storage
2026 - -
Power Plant
1 x 200MW Pump Storage
2027 - -
Power Plant
1 x 600MW New Supercritical
2028 - -
Coal Power Plant
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Renewable Power Projects Except Major Hydro Projects Known as Other Renewable Additions (ORE) Envisioned
Based on CEB LTGEP 2018-2037 are as follows:
Table 5: Details of Renewable Power Projects
Share
Cumulative Cumulative Cumulative Cumulative Cumulative Annual of ORE
Mini hydro Wind Biomass Solar Total ORE Total ORE from Total
Capacity Capacity Capacity Capacity Capacity Generation Generation
Year (MW) (MW) (MW) (MW) (MW) (GWh) %
2018 344 144 39 210 737 2,103 13.0%
2019 359 194 44 305 902 2,471 14.3%
2020 374 414 49 410 1,246 3,402 18.4%
2021 384 489 54 465 1,392 3,784 19.5%
2022 394 539 59 471 1,463 4,022 19.8%
2023 404 599 64 526 1,592 4,338 20.3%
2024 414 644 69 581 1,708 4,620 20.6%
2025 424 729 74 685 1,912 5,084 21.6%
2026 434 729 79 740 1,982 5,229 21.2%
2027 444 754 84 795 2,076 5,447 21.0%
Outlook on Long-Term Transmission Development Programme (LTTDP)
CEB’s Long-Term Transmission Development Plan (LTTDP) is prepared by the Transmission Planning Unit and is a rolling
plan prepared every two years for a period of 10 years, based on approved Long-Term Generation Expansion Plan
(LTGEP). The cost of the transmission development programme is around USD1,000 million and is funded by the Asian
Development Bank, the Japan International Cooperation Agency and Agence Francaise de Developpement.
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Summary of Ongoing Transmission Projects (Scope)
Table 6: Ongoing Transmission Projects
No. Description Quantity

1 220kV overhead lines (km) 584.7
2 220kV underground lines (km) 20.0
3 132kV overhead lines (km) 522.4
4 132kV underground lines (km) 13.8
5 220/132kV new grid substations (No.) 7
9 220/132kV grid substation augmentation (No.) 1
10 132/33kV grid substation augmentation (No.) 3
11 132/11kV grid substation augmentations (No.) 2
4 Reduction of Carbon Emission
The Policy on Renewable Energy and Major Regulatory Strategy (NEPS) anticipates an increasing share of other
Mechanisms renewable energy (ORE) resources and encourages the
use of competitive bidding. It is expected to reduce energy
Sri Lanka, presented the Intended Nationally Determined losses by improving the energy distribution infrastructure
Contributions (INDC) to strengthen the global efforts of and energy saving through the introduction of Demand Side
both mitigation and adaptation. In order to address the Management (DSM). The INDCs propose further actions
impact of climate change, Sri Lanka has taken several and sub actions which could directly or indirectly influence
positive steps by introducing national policies, strategies the reduction of GHG emissions in the energy sector by
and actions. In addition to fulfilling the increasing demand modifying, adapting and applying new technology in the
for electricity and integrating more renewable sources field. The establishment of large-scale wind power farms
in combination with conventional fossil-based energy and the adaption of advanced technologies for broadening
sources, Sri Lanka has also developed a detailed electricity solar power electricity generation is envisioned, while
generation expansion plan. The National Energy Policy and promoting the use of biomass (fuel wood) and waste
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(municipal waste, industrial and agricultural waste) by The Paris Agreement was ratified by Sri Lanka with the
elevating their use in power generation as modern and energy sector’s INDCs forecasting a 4% unconditional
convenient sources of energy. Mini and micro hydropower reduction and a 16% conditional reduction of GHG
generation projects are absorbed as an environment emissions compared to the reference scenario in 2030.
friendly power generation option for the national economy. CEB has incorporated this commitment in its Long-Term
Generation Expansion Plan (LTGEP) 2018-2037.
Role of Public Utility
The Sri Lanka Sustainable Energy Authority is entrusted with developing renewable energy in Sri Lanka.
Production of Renewable Energy Resources
In recent years, Sri Lanka’s power system has maintained a 40% to 60% share of renewable energy. This trend will continue
in the future with the optimum amount of renewable energy integration to the system.
Figure 13: Energy Percentage of Major Hydro and Other Renewable Energy
Production of Renewable Energy Resources
8000 80%
7000 70%
6000 60%
Energy (GWh)
Percentage
5000 50%
4000 40%
3000 30%
2000 20% Major Hydro
Other RE
1000 10%
Total RE
Percentage
0 0%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Year
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Other renewable energy for 2017 totalled 1,464GWh, consisting of 945GWh of mini hydro energy, 367GWh of wind energy
and 152GWh of solar and biomass energy. The projected energy output for the next five years from other renewable
energy sources, except major hydro, as envisioned in CEB’s LTGEP 2018-2037 is presented below:
Table 7: Projected Energy Output of the Next Five Years of Other Renewable Energy Sources Except Major Hydro
Mini Hydro Wind Energy Bio Mass Energy Solar Energy Total Energy
Year Energy (GWh) (GWh) (GWh) (GWh) (GWh)
2018 1,129 407 270 298 2,103
2019 1,178 557 305 432 2,471
2020 1,227 1,256 340 579 3,402
2021 1,260 1,491 375 659 3,784
2022 1,292 1,652 410 667 4,022
Environmental Issues of Electricity Supply
The use of fossil fuels in the generation of power impacts the environment. The impact could be due to factors including
particulate emissions; gaseous emissions (CO2, SOX, NOX etc.); warm water discharges into lakes, rivers or sea; liquid and
solid waste (sludge, ash); inundation (in the case of large reservoirs) and changes of land use.
In accordance with the LTGEP 2015-2034, Sri Lanka also prepared Intended Nationally Determined Contributions (INDCs)
and submitted to United Nations Framework on Climate Change. Among mitigation strategies, the energy sector INDCs
state that Sri Lanka expects a 4% unconditional and a 16% conditional reduction of GHG emissions compared to the
reference scenario in 2030. After ratification, the INDCs became NDCs and Sri Lanka has an obligation to achieve those
targets.
The energy contribution from other renewable energy sources plants will be maintained above 20% from 2020 onwards,
in compliance with the government’s policies. The capacity contributions from biomass, wind and solar plants were taken
into consideration and delays in implementation would impact capacity and energy balances. A separate renewable
integration study was carried out to identify the renewable resource allocation by minimising costs. With the proposed
introduction of 3 x 200MW Pumped Storage Power Plants and high ORE, the green credential of the system can be
maintained at around 50% of the country’s energy share.
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Strong development of renewable energy will increase the annual renewable capacity absorption level to four times
higher than the previous 12 years. In order to meet the commitment to environmental conservation, a total of 2,717MW
ORE capacity will be developed during the period 2018 to 2037. This will avoid the construction of 900MW coal power
plants during the planning horizon which will in return reduce the CO2 emissions by 17%. The additional cost of USD153
million will be absorbed by the electricity sector in order to mitigate the impact of climate change in accordance with
the government policies.
Policy on Energy Conservation and Efficiency allowing more electricity to be provided by less expansive
base load generation. SEA has identified key thrust areas
Energy Efficiency Improvement and Conservation (EEI&C) which can have a deep impact on energy saving as listed
efforts are one of the nine elements of the National below:
Energy Policy 2008. The Sri Lanka Sustainable Energy
Authority (SEA) is entrusted with the task of Operation • Efficient lighting
Demand Side Management (ODSM) which will be carried • Efficient fans
out by a Presidential Task Force on Energy Demand Side • Efficient refrigerators
Management (PTF on EDSM) and guided by a National • Efficient air conditioning
Steering Committee (NSC). • Efficient pumps
• Efficient motors
Demand Side Management (DSM) is a set of activities which • Eliminating incandescent lamps
encourage consumers to modify their level and pattern of • Green buildings
electricity usage. DSM refers not only to energy reduction • Energy management system and building management
but also to load shifting, peak shaving etc., which will help systems
to change load profiles to constant flat load curves by • Smart homes
A smart metering system is expected to be introduced in the future with the purpose of improving electricity grids and
reducing distribution grid expansion. In early 2017, Ante LECO Smart Metering Company was entrusted to manufacture
smart meters with the capability of producing one million smart electricity meters annually.
Combating climate change is a top priority and to this end, high efficiency supercritical coal plants are expected to
be introduced in the future instead of conventional subcritical coal plants. Supercritical coal power plants generate
less emissions compared to subcritical technology. These power plants are expected to be designed with indoor coal
storages as well as closed coal conveyor systems. 600MW supercritical coal plants are envisioned after 2028 instead of
the 2 x 300MW advanced subcritical plants. Options are being evaluated for integrating lower capacity supercritical coal
power plants before 2028.
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A concept paper and road map have been drafted for the • Outage management system
adoption of smart grid technologies into Sri Lanka’s power • Distribution transformer monitoring system
system in the future and addresses the digitalisation of • Mobile crew management system
possible areas in the power sector. The main technologies • Enterprise IT systems
in this domain are: • Application integration
• Wide area monitoring systems (WAMS)
• Supervisory control and data acquisition (SCADA) and • Smart street lights (with noise and pollution sensors)
energy management systems (EMS) at transmission level • Energy storage
and SCADA and distribution management systems (DMS) • Electric vehicles
at distribution level • Distributed energy resources and renewable energy
• Distribution automation integration
• Substation automation • Common command control room and policy makers
• Advanced metering infrastructure (AMI) • Customer engagement
• Geographical information system (GIS) map • Social media for utility
• Peak load and power quality management • Cyber security
6 Major Challenges of Transformation Affecting the Electricity Supply Industry
With the rapid development of technologies and growing concerns about climatic change, the worldwide electricity
sector has to face many challenges in the future. The challenges could be in the form of technology innovation, change
in the power sector business model, environmental safeguards for climatic changes, political challenges, the impact of
distributed generation, the impact on the physical power system and utility revenue. The electricity sector is therefore
engaged in multiple interactions with the economy, society and the environment and recognises that providing energy
services to current and future generations requires sustainable energy systems.
The technologies required to support sustainable development are already available and the challenge now is how
to adopt these technologies for the sustainable development of the power sector, including the reduction in cost,
achieving meaningful changes to improve these technologies and the speed at which these technologies are integrated
into the system. For example, technologies could be fully utilised to control the emissions from thermal power plants,
especially coal, and the share of renewable energy from wind and solar could be increased with the adaptation of modern
technologies.
The existing power utility business model will have a large impact on the current development and there could be
a complete transformation of the model or important changes made to it. The industry business model may face
transformation if it is faced with a number of potentially disruptive changes in the utility system. The addition of distributed
generation into the system may result in falling revenue and partly marginalising conventional generation and could
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lead to the bankruptcy of the conventional generators due to low dispatch of their generators. In future, centralised
generation and transmission may not be required to play the lead role in meeting demand growth.
The growth of distributed generation and its threat to the power utility business model depends on technological
developments and cost. Energy efficiency, falling solar prices, demand side management and smart grid technology head
the list of technological developments that the industry believes will have the biggest impact on their power markets.
Strategies which identify the best revenue opportunities therefore need to be developed. Key elements will include how
fast distributed generation technologies are developed and the share of gas base generation in the system. The gas share
will, however, be dependent on environmental and community concerns. Furthermore, a large share of distributed power
generation will change the nature of the distribution network, making it much more complex. The roles of transmission
system operators and distribution system operators will need to be re-defined in an era of self-generation, smart grids
and demand side management.
Large share of intermittence resource based generation connected to the distribution network will make it difficult for
system operators to balance the power system and will require a fair amount of spinning reserve in the system. Managing
these extra reserves pushes more costs back into the system and increases the centralised generation cost which will be
passed to consumers connected to the grid in the future. The situation will become more difficult when cross-subsidies
are given to promote renewable sources and demand side measures.
Challenges in the Sri Lankan Context
Sri Lanka is an island country and the power system is not yet connected to any other country network. Power demand
varies from 1,000MW to 2,500MW in a daily cycle and the increase of intermittence based renewable energy generation
will have a significant impact on the operation and stability of the system. On the other hand, Sri Lanka has rich potential
in solar and wind energy and only a very small percentage of the available potential has been harnessed. Therefore,
integrating more renewable based generation into the grid and adopting new technologies will be a great challenge
to the utility. Furthermore, integrating more renewables which operate as must run generators reduces the share of
conventional generators and will affect the economy of these generators and the sustainability of their operations. The
planning and operation of the power system under this environment becomes more complex and strategies have to be
developed for a sustainable energy system in future.
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THAILAND C EPS I 2018
Capital: GDP: 1. Wikipedia (as modified on 21 July 2016)
Bangkok USD407.1
2. The Bureau of Registration
Administration (BORA), Department
of Provincial Administration (DOPA),
billion (2016 current price)3 Ministry of Interior
3. Office of the National Economic and
Social Development Board (NESDB), The
Area: Currency: Prime Minister’s Office
513,120
km21
Thai Baht
(THB)
4. a -Metropolitan Electricity Authority
(MEA)
b -Provincial Electricity Authority (PEA)
c -Department of Alternative Energy
Development and Efficiency
Population: DEDE), Ministry of Energy
Installed Capacity:
65.93
d -Department of Provincial
45.065
Administration (DOPA), Ministry of
Interior
million2 GW e -Bangkok Metropolitan Administration
(BMA)
Percentage of Population
Electrified:
99% 4
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C EPS I 2018
Total Power Projected Projected Power

Consumption Change (%) Consumption as Remarks:
1. Commercial sector
Sector as of 2016 (GWh) (Year 2016/Year 2017) of end 2017 (GWh) consists of business and
Industrial 77,203 2.7 79,254 small general service.
2. Others sector consists
Residential 43,932 5.2 46,210 of agricultural pumping,
free of charge,
Commercial 55,682 6.2 59,121 government and non-
Others 6,032 4.4 6,295 profit organisations, and
other consumers that
Total 182,849 4.4 190,880 cannot be categorised.

Figure 1: Thailand Integrated
Energy Blueprint (TIEB)
Thailand’s economic growth and infrastructure investment plans according
to the government’s policies, including preparations for the ASEAN Economic
Community in 2015, drive total electricity consumption. On 22 October 2014,
the National Energy Policy Council (NEPC) supported the Thailand Power
Development Plan 2015-2036 (PDP2015) that stipulated that three national
plans, namely the Energy Efficiency Development Plan, the Alternative Energy
Development Plan and the Power Development Plan be revised in line with the
National Economic and Social Development Plan.
To this end, the Ministry of Energy, Thailand (MoEN) developed the Thailand
Integrated Energy Blueprint (TIEB) as follows:
1. Thailand Power Development Plan (PDP)

2. Energy Efficiency Development Plan (EEDP)
3. Alternative Energy Development Plan (AEDP)
4. Natural Gas Supply Plan
5. Petroleum Management Plan
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Figure 2: Supply and Demand of Primary Natural Resources in 2015
Demand & Supply by Type in 2015

Production Consumption Import Export
Petroleum 171.5 142.7* 9.9 35.5

Product
(M.Litre/Day) 8.9% 1.9% 34.3% 19.1%
Natural Gas 3,852 4,764 1,262

(MMscfd)
5.4% 2.0% 23.2%
Coal 21.9 21.9
(M.Tonnes)
5.0% 4.8%
Lignite 15.2 15.1

(M.Tonnes)
15.7% 17.8%
177,775 174,833 14,414 2,267

Electricity
(GWh)
2.3% 3.6% 17.6% 9.7%
Source:
Energy Statistics of Thailand 2016: Energy Policy and Planning Office (EPPO), Ministry of Energy (MOEN), Thailand
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Figure 3: Structure of Thailand’s Electricity Supply Industry
Enhanced Single Buyer (ESB) Model
In addition, EGAT purchases power from independent power producers (IPPs), small power producers (SPPs) and neighboring countries.
Very
Independent Small
EGAT Power Import Small Power
Generation Power Producer Power Producer
Gen. Producer
Governmental body and ERC

Account Unbunding Policy
System
Transmission EGAT Trans. Operator
ring fenced
Electric + Steam
Distribution
PEA MEA
Regulate
End User EGAT Direct Customers End Users Industrial Estate
Remarks:
EGAT = Electricity Generating Authority of Thailand
PEA = Provincial Electricity Authority
MEA = Metropolitan Electricity Authority
EPPO = Energy Policy and Planning Office, Ministry of Energy
ERC = Energy Regulatory Committee
IPPs = Independent Power Producers (>90MW)
SPPs = Small Power Producers (10-90MW)
VSPPs = Very Small Power Producers (<10MW)
Thailand’s electricity supply structure is a single-buyer model. The Electricity Generating Authority of Thailand (EGAT),
the state-owned power utility under the Ministry of Energy (MoEN), is responsible for electricity generation, transmission
and produces, sells and transmits bulk energy to distribution utilities and EGAT’s direct customers. In addition, EGAT also
purchase powers from independent power producers (IPPs), small power producers (SPPs) and neighboring countries.
On the other hand, SPPs directly sell power and steam to electricity consumers within industrial estates.
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For the distribution system, there are two utilities, namely Laws and Governmental Regulations
the Provincial Electricity Authority (PEA) and the Metropolitan
Electricity Authority (MEA), which sell electricity to end There are several important acts that regulate the
users. MEA supplies electricity to customers in Bangkok, energy supply industry in Thailand, such as the National
Nonthaburi and Samut Prakarn provinces, while PEA Energy Policy Council Act B.E. 2535 (1992), the Energy
supplies electricity to the other 74 provinces. Very small Conservation Promotion Act B.E. 2535 (1992), and the
power producers (VSPPs), whose capacities must be less Energy Industry Act, B.E. 2550 (2007).
than 10MW, can directly sell power to PEA and MEA.
The National Energy Policy Council Act B.E. 2535 (1992)
For regulation, the Energy Regulatory Commission (ERC) was enacted to establish the National Energy Policy Council
was established under the Energy Industry Act, B.E. (NEPC) with the Prime Minister as Chairman. NEPC’s main
2550 (2007) in December 2007. After the establishment powers and duties are to submit the National Energy Policy,
of the ERC, the government, via the National Energy National Energy Management and Development Plan to
Policy Council (NEPC) is authorised and responsible for the Council of Ministers and lay down rules and conditions
determining policies on energy industry management, to prescribe the price of energy in accordance with the
while the ERC is responsible for regulating the operations National Energy Policy, National Energy Management and
of the energy industry, namely electricity, natural gas and Development Plan.
energy network industries. ERC’s key role is to ensure
compliance with the objectives of the Energy Industry Act The Energy Conservation Promotion Act B.E. 2535 (1992)
under the policy framework of the government. was enacted in order to promote energy conservation in
factories, buildings, machinery, equipment and energy-
Figure 4: Suan Nam Phra Thai, Eco Park inside EGAT efficient material. Under this act, the Energy Conservation
Head Office, Nonthaburi province, Thailand Fund (ENCON Fund) was established to provide working
capital, grants or subsidies for the implementation of
energy conservation work.
The Energy Industry Act, B.E. 2550 (2007) was enacted

to monitor the conduct of the energy industry anywhere
in Thailand. Principally, the objectives of this Act are to
promote the provision of an adequate and secure energy
service provision while maintaining fairness for both energy
consumers and licensees, protect energy consumers’
benefits in terms of both tariffs and service quality and
promote fairness and transparency of the service provision
of the energy network systems and more. The Energy
Regulatory Commission (ERC) was established under this
act in December 2007.
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There are other acts that govern the three power utilities, In principal, the fixed component has been
namely EGAT, PEA and MEA, in terms of authorisation calculated from the investment cost of the
to ensure that they are functioning according to the generation, transmission and distribution,
objectives specified in the acts. operating expenses and return on investment,
while the variable component is calculated from
Electricity Consumption from 2017 to 2022 and
fuel costs, power purchase costs and expenses
Expected Annual Growth Rate in the Next Decade
according to government policies.
Table 2: Electricity Consumption from 2017 to 2022 b) Automatic tariff adjustment (Ft)
Ft is an adjustment to base tariff in line with
Electricity Expected Annual changes in fuel costs, power purchase costs
Consumption Growth Rate and expenses according to government policies.
Year GWh % This mechanism reflects the actual cost which
makes the tariff charged to consumers fair and
2017 190,880 4.39
transparent. Ft is revised every four months.
2018 197,364 3.40
2019 204,868 3.80 c) Value Added Tax (VAT)
2020 211,870 3.42 In addition to the base tariff and the Ft, customers
2021 217,850 2.82 are charged for Value Added Tax (VAT) which is
equal to 7% of the sum of the base tariff and Fe.
2022 223,999 2.82
Figure 5: EGAT’s Control Centre

The Amount of Electricity Exported and Imported
In 2016, the total amount of electricity exported and

imported in Thailand was 899.75GWh and 19,831.47GWh,
respectively.
• Tariff structure
Thailand’s electricity tariff structure has been revised
since 2015 and its framework is to have reasonable
and fair electricity costs and tariffs reflecting actual
economic cost, and to promote the efficient use of
electricity. The tariff is composed of three parts;
a) Base tariff
The base tariff is divided into two components
which are fixed and variable components.
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Total Amount of Energy Consumed by Sectors Electricity subsidies among

generation and T&D sectors
Table 3: Total Amount of Energy Consumed by Sectors

For the generation sector, there
are subsidies for renewable power
Sector Total Electricity Consumption in 2016 (GWh) % producers in terms of adder and Feed-
Industrial 77,203 42 in-Tariff (FIT). For the demand side,
Residential 55,682 31 electricity consumers in the residential
Commercial 43,932 24 sector who consume total energy per
Others 6,032 3 month of less than 50 units (kWh) for
Total 182,849 100 more than three consecutive months
will not be charged for electricity
payment.
Figure 6: Contract Capacity by Power Plant Type
Generation Capacity - 2016 (By Plant Type)
EGAT System (41,556MW) VSSP + DEDE + PEA Self-gen

Co generation/Diesel
Gas Turbine & Diesel
67MW 2%
30MW 0.1%
Wind
Thermal Co generation 31MW 1%
8,567MW 20.6% 4,749MW 11.4%
Domestic Hydro Hydro
TNB 122MW 3%
3,500MW 8.4% Biomass
300MW 0.7%
MSW 884MW 11.4%
Laos Hydro 55MW 2%
2,105MW 5.1%
Total Biogas
Biomass & Others
1,593MW 3.8%
3,504MW 287MW 8%
Combined Cycle Solar
20,712MW 49.8% 2,058MW 59%
Thailand System 45,065MW

- EGAT System 41,556MW
- VSPPC+ DEDE + PEA Self-gen 3,504MW
VSPP = Very Small Power Producer
Contract Capacity by power plant type DEDE = Department of Alternative Energy
Remarks: The figure excludes independent power supplies Development and Efficiency
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Structure of Installed Generating Capacity by Producers

Figure 7: Energy Generation by Fuel Type (utilities and IPPs)
Electricity Generation Mix - 2016 (by fuel type) Figure 8: Installed Generating Capacity by Producers
Generation Capacity - 2016 (by owner)

Renewable Diesel & Fuel Oil
Energy 912GWh 0%
12,262GWh 6% VSPP/DEDE/PEASG
Import
HVDC Malaysia 3,509MW 8%
3,578MW 8%
115GWh 0%
Imported Hydro EGAT
TNB
11,068GWh 6% 16,385MW 36%
300MW 1%
Domestic Hydro SPPs (non-Firm)
3,540GWh 2% 1,545MW 3%
196,405 Natural Gas 45,065
Imported Coal SPPs (Firm)
GWh 124,761GWh GWh
18,020GWh 9% 4,800MW 11%
64%
Lignite
25,727GWh 13%
IPPs
14,948MW 33%
Remarks: The figure excludes independent power supplies (IPSs)
VSPP = Very Small Power Producer
DEDE = Department of Alternative Energy Development and
Efficiency
PEASG = PEA’s Self Generation
Remarks: The figure excludes independent power supplies (IPSs)
1. Hydroelectric (EGAT) *small hydro power plants are

not included
i. Bhumibol Dam 779MW viii. Bang Lang 76MW

ii. Srinagarind Dam 720MW ix. Chulabhorn Dam 40MW
iii. Sirikit Dam 500MW x. Tha Tung Na Dam 39MW
iv. Lam Takhong Pumped 500MW xi. Sirindhorn Dam 36MW
Storage xii. Kwaenoi Bamrungdan Dam 30MW
v. Vachiralongkorn Dam 300MW xiii. Ubolratana Dam 25MW
vi. Ratchaprapa Dam 240MW xiv. Knag Krachan Dam 19MW
vii. Pak Mun Dam 136MW xv. Chao Praya Dam 12MW
3 24
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Figure 9: Vajiralongkorn Hydro Power Plant (Total b) IPP

installed capacity of 300MW) i. Khanom Electricity 930MW
Generating Co., Ltd.
ii. RATCH Ltd. 3,481MW
iii. Tri Energy Ltd. 700MW
iv. Global Power Synergy 700MW
Ltd.
v. Gulf Power Generation 1,468MW
Ltd.
vi. Ratchaburi Power Ltd. 1,400MW
vii. Gulf JP NS Ltd. 1,600MW
viii. Gulf JP UT Ltd. 1,600MW
ix. Glow IPP Ltd. 713MW
x. Eastern Power and 350MW
2. Natural Gas Electric Ltd.
a) EGAT c) Cogeneration
i. Wang Noi Combined 2,660MW i. SPP 4,749MW

Cycle ii. VSPP 67MW
ii. South Bangkok 1,588MW
Combined Cycle d) Coal
iii. Bangpakong Combined 1,338MW i. Mae Moh 2,180MW
Cycle ii. BLCP Power 1,347MW
iv. Bangpakong Thermal 1,152MW iii. GHECO-One 660MW
v. Nampong Combined 650MW
Cycle e) Fuel Oil (EGAT)
vi. Chana Combined Cycle 1,476MW i. Krabi Thermal 315MW
vii. North Bangkok 1,498MW
Combined Cycle (Unit f) Diesel Generator (EGAT)
1-2)
i. Mae Hongsorn 4.4MW
ii. Southern of Thailand 26MW
Diesel Gen.
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g) Power Import h) Renewable Energy

i. Nam Theun 2 (Lao PDR) 948MW i. Solar 2,501MW
ii. Huay Ho (Lao PDR) 126MW ii. Biogas 301MW
iii. Nam Ngum 2 (Lao PDR) 597MW iii. Biomass 1,515MW
iv. Then-Hinboun 434MW iv. Wind 463MW
(Lao PDR, Phase 1-2) v. Hydro 170MW
v. Hongsa Lignite 1,473MW vi. MSW 128MW
(Lao PDR, Unit 1-3)
vii. Others 5MW
vi. HVDC (Malaysia) 300MW
List of Power Grid by Major Voltage Levels Outlook Plan for Next Decade
EGAT Transmission System Information (as of April 2017) Power Development Plan (PDP)
No. of Substations : 219 Thailand’s Power Development Plan

Total Transformer Capacity : 101,029.41MVA (PDP) is the master plan for the long-
Total Transmission Length : 33,429.756 circuit-km term development of the power
system that aims to fulfil the country’s
Figure 10: EGAT Transmission System (as of April 2017) electricity demand and promote
Thailand’s economic growth.
The latest official Thailand Power
Length (Circuit - KM)
Development Plan (PDP), namely the
Thailand Power Development Plan
2015-2036 (PDP2015), was approved
500kV
by the National Energy Policy
230kV Council (NEPC) on 14 May 2015 and
acknowledged by the cabinet on
115kV
30 June 2015. PDP2015 is formulated
132kV in a way that the contents of the three
69kV
national plans; the Energy Efficiency
Development Plan (EEDP), the
300kV
HVDC Alternative Energy Development Plan
(AEDP) and the Power Development
Plan which are aligned according to
0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000
the National Economic and Social
Development Plan.
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The PDP2015 aims to integrate all energy development of 500kV, 230kV and 115kV as well as the HVDC power
plans and emphasises three key aspects, namely energy exchange (300kV HVDC link) between Thailand (EGAT)
security, economy and ecology. and Malaysia (TNB) in the southern part of Thailand.
1. Energy Security: EGAT has a National Control Centre (NCC) and five
- To enhance Thailand’s energy security and Regional Control Centres (RCCs), including Metropolitan,
promote the National Economic and Social Central, Northern, North-Eastern, and Southern areas. To
Development Plan. meet the increasing demand for electricity, EGAT does not
- Focus on fuel diversification in order to reduce the only implement power plant development, it also covers
use of natural gas as the major energy source. the development of transmission system project in order
2. Economy: to fulfil the system’s requirement.
- To produce electricity with reasonable costs for
both the residential and business sectors so that The Transmission Development Plan (TDP) focuses on five
it supports the long-term development of the main categories as follows;
country.
- To promote energy efficiency. 1) Transmission system reinforcement projects to cope
3. Ecology: with increasing demand
- To alleviate environmental and social impacts for 2) Transmission system improvement projects to
sustainable development. It will focus on reducing enhance security for all of the national regions
the CO2 emissions electricity generation and 3) Transmission system expansion and renovation
promoting the use of clean energy. projects
4) Transmission system development projects for power
Transmission System Development Plan (TDP) purchase from EGAT power plant, IPPs, SPPs and
neighbouring countries
As Thailand’s leading state-owned power utility under 5) Transmission system projects for grid-to-grid
the Ministry of Energy, EGAT is the sole owner of the connection
transmission system, including transmission line voltage
4 Reduction of Carbon Emissions
Policy of Renewable Energy
The Alternative Energy Development Plan 2015-2036 (AEDP2015) was developed in line with the Thailand Integrated
Energy Blueprint (TIEB) and focuses on promoting the use of renewable energy. The renewable energy promotion
schemes are designed to strengthen the community, lessen the dependence on fossil fuels and alleviate social problems
such as municipal solid waste and agricultural waste. A key priority of the plan is to encourage power generation from
waste, biomass, and biogas. The main target of the AEDP2015 is to increase the portion of renewable energy generation
from 9.87% of the total electricity demand in 2014 to 20% by 2036, leading to a total installed capacity of renewable
energy of 19,684.4MW in 2036 as shown in Table 4.
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C EPS I 2018
Table 4: Status and Target of Electricity Generation from Renewable Energy by Fuel Type (MW)
Fuel Status at end of 2014* (MW) Target at 2036 (MW)

1. MSW 65.72 500.00
2. Industrial Waste - 50.00
3. Biomass 2,451.82 5,570.00
4. Biogas (WW/SW) 311.50 600.00
5. Small Hydro 142.01 376.00
6. Biogas (Energy Crop) - 680.00
7. Wind 224.47 3,002.00
8. Solar 1,298.51 6,000.00
9. Large Hydro - 2,906.40**
Total installed capacity (MW) 4,494.03 19,684.40
Electrical Energy (million units) 17,217 65,588.07
Total Electrical Energy Demand (million units) 174,467 326,119.00
Share of RE in Electricity Generation (%) 9.87 20.11
* Including off grid power generation and not including power generated from large hydro
** It is the existing capacity and the generation from large was included in the Target of AEDP2015
Major Regulatory Mechanism of the Renewable Law
Currently there are laws relating to the energy supply industry such as the Energy Industry Act B.E. 2550 (2007) and the
Energy Conservation Promotion Act B.E. 2535 (1992), but there are none that seek to promote the proper and efficient
use of renewable energy. The draft of the Renewable Energy Act B.E. was carried out by the committees of the National
Reform Steering Assembly on Energy. In 2016, two meetings of focus groups, namely the government and the public
sector, were held to gather opinions and suggestions on the draft. The draft is currently under revision.
Role of Public Utility in the Renewable Energy Law
Since the draft of the Renewable Energy Act is under revision, the roles and duties of utilities under the law are still
unknown.
328
C EPS I 2018
Table 5: Production of Renewable Energy from Various Resources
Renewable Resources Electrical Energy Generation in 2016 (GWh)

Hydro (Domestic) 3,540
Hydro (Import) 11,068
Biomass/Biogas 7,177
Others 5,085
Total 26,870
Plans and Strategies to Reduce the Greenhouse Gas Emissions
In 2015, at the 21st session of the

Figure 11: Thailand’s Nationally Appropriate Mitigation Actions (NAMAs)
Conference of Parties (COP21)
– Intended Nationally Determined Contributions (INDCs) Target
under the United Nations Framework
Convention on Climate Change
(UNFCCC) in Paris, France, General 600
Greenhouse Gas Emission (MtCO₂e)
Prayut Chan-o-Cha, Prime Minister INDCs: 20 – 25%

555 MtCO₂e
of Thailand, presented the country’s NAMAs 7 – 20% 2030 BAU: Economy-Wide
standpoint on how to mitigate 2020 BAU: Energy and Transportation
500 U 110 MtCO₂e
the effects of global warming. BA
Cs
IND
The Prime Minister set the goal of 445 MtCO₂e
reducing greenhouse gases (GHGs) 428 MtCO₂e 415 MtCO₂e
400 404 MtCO₂e
by about 20% to 25% by 2030 by
367 MtCO2e
reducing the use of fossil energy, 354 MtCO₂e
343 MtCO₂e 24 MtCO₂e
increasing the use of environment- BAU
MAs
friendly renewable energy, shifting 300 NA rget
As Ta 293 MtCO₂e
NAM
from road transportation to rail 251 MtCO₂e NAMAs Tracking
243 MtCO₂e
transportation, promoting the use 226 MtCO₂e
14 MtCO₂e
of renewable energy in the Power 200 Year

2010 2013 2015 2020 2025 2030
Development Plan (PDP), eliminating
forest encroachment and planning
Source: Thailand greenhouse gas management organisation (TGO)
for integrated water management,
based on the principles of economic
sufficiency. Thailand’s goals in
reducing GHG emissions by 2020 and
2030 are shown in Figure 11.
329
C EPS I 2018
In the years leading up to 2020, Thailand will plan for Nationally Appropriate Mitigation Actions (NAMAs) and endeavour,
on a voluntary basis, to reduce its GHG emissions in the range of 7% to 20% below the Business as Usual (BAU) level in the
energy and transport sectors in 2020, subject to the level of international support received. After 2020, Thailand will plan
for Intended Nationally Determined Contributions (INDCs) and intends to reduce its GHG emissions by 20 % from the
projected BAU level by 2030. The level of contribution could increase to 25% subject to adequate and enhanced support
through balanced and ambitious global agreements.
In terms of GHG emission reduction, EGAT will aim to reduce about four million tonnes of carbon dioxide equivalent
(MtCO2e) in 2020 to support the NAMA’s target and 12 million tonnes of carbon dioxide equivalent (MtCO2e) in 2030 to
support the INDC’s target.
To formulate the Energy Efficiency

Figure 12: The Energy Conservation Target According to EEDP in Year 2036
Development Plan 2015-2036 in
fulfillment of Thailand’s Integrated
Energy Blueprint (TIEB), Thailand’s Ktoe Servings in
Ministry of Energy has revised the 60,000 2013
Energy Efficiency Development Plan
2011-2030 by adjusting the baseline 4,442ktoe
50,000
data and assumptions. The target of
the EEDP2015-2036 has been revised
to reduce energy intensity in 2036 by 40,000
30% compared to 2010, which is equal
2036 Target Target during Thermal
to 56,142 kilotonnes of oil equivalent
30,000 56,142ktoe 2015-2036 Sector
(ktoe) of energy savings. However, the
51,700ktoe 44,059ktoe
amount of energy savings achieved
during the period 2010-2013 was 20,000
approximately 4,442ktoe and therefore
the energy conservation target for
10,000
the 2015-2036 period is now set at
Power Sector Power Sector
51,700ktoe. The total energy savings 7,641ktoe 89,672GWh
is divided into two sectors: which 0
is Thermal Sector & Power Sector
(Electricity). Total energy saving for
thermal sector is 85% or 44,059 ktoe
while for power sector is around 15%
or 7,641 ktoe (89.672GWh)as shown in
Figure 12.
330
C EPS I 2018
The energy conservation action plans for four economic sectors - residential, industrial, business and transportation –
have been revised. Six guidelines are designed to encourage energy conservation as follows:
1) Removing/revising energy price subsidies to create the market price
2) Introducing tax incentives/ESCO fund to encourage the use of energy efficient appliances
3) Introducing monetary incentives/grants or soft loans along with energy management consulting to encourage the
use of high energy efficiency appliances
4) Defining the Industrial Factory and Building Energy Code obligations
5) Building public awareness of energy conservation
6) Defining the Energy Efficiency Resources Standard (EERS) for power producers and distributors
According to the EEDP, six of the most feasible energy conservation measures (from 34 measures) will be implemented
in electricity sectors to achieve 89,672GWh of energy savings in 2036, as shown in Table 6.
Figure 13: Similan Island, Phang Nga Province, Thailand
Source: http://www.phuketseabeachtour.com/thai/tour_similan.php
331
C EPS I 2018
Table 6: The Energy Conservation Targets in Year 2036 Classified by Measure (GWh)
Building
Measures Residential Industrial Business Government Total (GWh)
1. Specific Energy Consumption - 10,814 5,654 3,180 19,648
(SEC)
2. Building Energy Code (BEC) - - 11,975 1,711 13,686
3. High Energy Performance 8,936 6,226 7,609 989 23,760
Standard (HEPs) & Minimum
Energy Performance Standard
(MEPs)
4. Monetary incentives - 9,133 5,941 - 15,074
5. LED promotion 3,354 3,303 3,711 1,264 11,632
6. Energy Efficiency Resource 1,343 2,367 2,162 - 5,872
Standard (EERS)
Total 13,633 31,843 37,052 7,144 89,672
Smart Grid Deployment: Development Strategy and The concepts of the four strategies are as follows:
Operational Guidelines
1) Strategy 1: Smart Energy
The Smart Grid in Mae Hong Son province consists of This strategy is to develop the electricity supply which
three parts of power system operation, namely supply side, relies on renewable energy in the region and enhance
operation side and demand side. Providing knowledge the system security in Mae Hong Son province through
about Smart Grid to the people and relevant sectors is a the implementation of the Battery Energy Storage
way to sustain the development of Smart Grid in Mae Hong System (BESS). The objectives of Smart Energy are as
Son. follows:
• To accommodate more renewable energy in the
The development of Smart Grid in Mae Hong Son province region
comprises four strategies: Smart Energy, Smart System, • To enhance the reliability in supplying electricity
Smart City and Smart Learning to enhance the system through the application of Smart Grid technology
security in the province. This province is selected to be the
prototype for the green economy province.
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C EPS I 2018
2) Strategy 2: Smart System 4) Strategy 4: Smart Learning

This strategy is to make the system smarter through This strategy is to enhance the potential of the
the implementation of smart systems like automatic community in the development of the Smart Grid in
control, by making decisions concerning the electricity Mae Hong Son through modern community learning
supply including voltage and frequency control, to centres. This method is known as Smart Learning and
cope with the demand for energy efficiency. The provides Smart Grid knowledge to the people and
objectives of the Smart System are as follows: relevant sectors. The objectives of Smart Learning are
• To implement the Micro Energy Management as follows:
System (Micro-EMS) to reach a decision on • To be the Smart Grid Network Learning and
supplying the electricity in the region through Training Centre in the ASEAN
automatic control • To promote the research and development of
• To implement the ICT Infrastructure, including Smart Grid in Thailand
Smart Operation and Integrated ICT, in the power
system for Smart Grid operation The expected results from the Smart Grid Pilot Project
in Mae Hong Son province are as follows:
3) Strategy 3: Smart City • To be the robust system security in the province
This strategy is to transform Mae Hong Son city into through the implementation of smart grid
a Smart City which integrates ICT and Internet of technology
things (IoT) as a way to securely manage a city’s assets. • To be the prototype of the green economy
The Smart City enhances the role of power users by province
detailing their consumption so that they can respond • To be the prototype of sustainable energy
in appropriate ways. The objectives of Smart City are consumption in ASEAN
as follows:
• To allow power users to be aware of electricity Strategies for the Development of Smart Grid in Mae
consumption through the Building Energy Hong Son city are summarised and illustrated in
Management System (BEMS) Figure 14.
• To persuade the power users to participate in
Demand Response
333
C EPS I 2018
Figure 14: Strategies for the Development of the Smart Grid in Mae Hong Son City
STRATEGIES OBJECTIVES RESULTS

To accommodate more RE
through BESS
Smart Energy
To enhance the electricity
supply reliability
To be the robust
system security
To implement Micro-EMS
Smart System To be the prototype
To implement ICT infrastructure of Green Economy
province
To allow the power users to beware in
electricity consumption through BEMS To be the prototype
Smart City of sustainable energy
To persuade power users to
participate in Demand Response consumption in the
ASEAN
To be the Smart Grid Network Learning and
Training Centre in the ASEAN
Smart Learning
To promote the research and development
of Smart Grid in the country
Energy Storage System (ESS)
The purpose of Energy Storage System (ESS) is to store energy generated from renewables such as wind and solar into
rechargeable batteries for use at a later time. The ESS not only stores energy, but also helps to solve various problems in
the power system, such as reducing the constraint in the development/expansion of the power system and making the
system more flexible in supplying electricity.
The Thailand Smart Grid Development Master Plan 2015-2036, prepared by the Energy Policy and Planning Office (EPPO)
under the Ministry of Energy, was officially adopted in February 2015. The action plan on Thailand’s Smart Grid for the
334
C EPS I 2018
short-term is shown in Figure 15 and focuses on five topics: (1) Energy Management System (EMS), (2) Pricing and
Incentive Design and Demand Response, (3) Microgrid, (4) Energy Storage System (ESS), and (5) Wind and Solar Power
Forecast.
To meet the action plan for Thailand’s Smart Grid, EGAT has established a sub-committee to determine the appropriate
technology, locations, application and related topics of energy storage for EGAT’s grid. The ESS can accommodate
more renewable energy to comply with the Alternative Energy Development Plan 2015 (AEDP 2015). The objective of
AEDP 2015 is for electricity from renewables to account for at least 30% of the electricity generation by 2036 and reduce
the GHG emissions under the 2015 Paris Climate Conference (21st Conference of Parties: COP21).
Figure 15: Action Plan for the Thailand Smart Grid Development Master Plan 2015-2036
Thailand Smart Grid Development Master Plan 2015-2036
Action Plan on Thailand Smart Grid
Preparation Short-Term Medium-Term Long-Term

2015-2016 2017-2021 2022-2031 2032-2036
OBJECTIVES GUIDELINES
Pilot Project Development Phase AREA 1 AREA 2 AREA 3
Demand Response Renewable Micro Grid and

Study, Test, Research
and Energy Energy Forecast Energy Storage
Management System (ESS)
System (DR & EMS)
1. Technical suitability test
2. The value of an investment
Review the suitability of applying

for the next development phase
335
C EPS I 2018
7 Major Issues or Transformation Impacting the Electricity Supply Industry
Major Issues
Thailand’s electricity generation currently depends heavily deal with this issue in the future, Thailand plans to reduce
on natural gas and in 2016, the share of natural gas was its dependency on natural gas and diversify its energy
approximately 64%. There will be an issue when the natural resources by using other alternatives such as clean-coal
gas piping and electrical systems are under maintenance technology, renewable energy, and liquefied natural gas
which will result in a significant loss of the amount of (LNG).
natural gas supplied. Consequently, some gas-fired power
plants cannot operate or have to switch to secondary fuel, Another issue is that in recent years solar power plants
if applicable. To address this problem, the government have started to impact the shape of electricity demand.
may ask different sectors, namely EGAT, private power Normally, Thailand’s electricity demand has three peaks;
producers, and end-customers to work together in an morning, afternoon and evening. The afternoon peak is
effort to solve the issue. For instance, EGAT will prepare the highest and occurs at 14:00 hrs. When the penetration
to run some power plants that use diesel or heavy oil to of solar power plants (VSPP and SPP) in the system is
compensate for the lost capacities and will not schedule high, a significant amount of electricity produced by solar
plant maintenance during times when gas is short. The cells will cut the afternoon peak. EGAT’s highest peak will
government also ask end-customers to reduce their therefore change from afternoon to evening and this will
electricity consumption during times of gas shortage. To affect how EGAT operates the power system.
Figure 16: Doi Mae Salong, Chiang Rai province, Thailand
https://www.tourismthailand.org/Attraction/Search?lifestyle_id=1&cat_id=&subcat_id=&view=&keyword=chiang+rai
336
VIETNAM C EPS I 2018
Hanoi USD194
billion (2015)
38,553 MW
(excluding self-generators, as of
31 March 2018)
Area:
330.967 Currency:
Vietnam
Electrified Rate:
km2 (2015)
99.85%
Population:
Dong
(VND)
of communes and 98.88% of
households
91.713
million
337
C EPS I 2018
Total power production and purchase by EVN reached 176.99 billion kWh and total power sales reached 159.1 billion kWh
to 24.85 million customers in 2016.
Table 1: Total Power Sale
Agriculture, Forestry and Aquaculture 3,614

Industry and Construction 85,688
Commercial, Hotel & Banks 8,727
Administration & Residential 54,992
Others 6,772
Total (Million kWh) 159,793
Vietnam’s overall installed electricity generation capacity was 42.135GW in 2016. Hydro power, coal and natural gas are
still the dominant energy sources for power production.
EVN contributes up to 61.4% of the

Table 2: Power Generation by Fuel Type as of 31 December 2016
national power generation system
with large-scale hydropower, coal
Power source Capacity (MW) Rate (%) fires, gas-fired power and EVN owns
Hydropower 15,857 37.6 the entire national power transmission
and distribution system which covers
Coal-fired power 14,448 34.5
all provinces and cities. The average
Oil-fired power 1,370 3.3 electricity tariff of EVN was at about
Gas-fired power 7,502 17.8 USD7.3 cent/kWh.
Diesel, Small Hydropower and
2,418 5.8
Renewable
Import 540 1.2
Total 42,135 100
Overall installed electricity generation capacity
338
C EPS I 2018
Figure 1: Power Generation by Ownership
23.9%
Vietnam Electricity
4.2% PetroVietnam
Vinacomin
10.5% BOT and other investors
61.4%
Power Transmission and Distribution Networks
Vietnam’s power system is operating at a high voltage of 500kV, 220kV and 110kV and medium voltage of 35kV to 6kV
and it is integrated by the 500 kV transmission network which is managed and operated by EVN’s National Transmission
Power Corporation (NPT). The power transmission line of 500 kV and 200kV are also managed by the NPT while the line
of 110kV to 6kV and low voltage are managed by regional power utilities.
Table 3: Power System in Vietnam
Type Unit Quantity

500kV lines km 7,446
500kV transformers MVA 26,100
In power exchanges between Asian countries in the period 2011–2016, EVN imported nearly 16.2 billion kWh from China
and 2.6 billion kWh from Laos and exported more than 6.5 billion kWh to Cambodia and nearly 233 million kWh to Laos.
339
C EPS I 2018
Figure 2: Power Import
Million kWh
6,000
5,000
Import from Laos
4,000
Import from China
3,000
2,000
1,000
0
2011 2012 2013 2014 2015 2016
Power imported from Vietnam
Figure 3: Power Export
Million kWh
1,600
1,400
1,200
1,000 Export to Laos
800
Export to Cambodia
600
400
200
0
2011 2012 2013 2014 2015 2016
Power exported to Vietnam

340
C EPS I 2018
Figure 4: Vietnam Power Market Roadmap
2016 - 2019 - 2021 -

2003 - 2011 2011 - 2012 2012 - 2016 2019 2021 2023 After 2023
1995 1995 - 2003 Prepare for Operate the Full Pilot Full Pilot Full
Policies Commercialisation Market Market Operation Operation Operation Operation Operation
Government Establish Electricity * Electricity * Pilot Market Vietnam Vietnam Wholesale Vietnam Retail Electricity
introduced of Vietnam Law Vietnam Competitive Electricity Market Market (VREM)
policies to Equitisation approved Competitive Generation (VWEM)
restructure * Establish Generation Market
power Electricity Market (VCGM)
sector Regulatory (VCGM)
Authority * Preparing
of Vietnam for Whole
(ERAV) Market
3 Power Generation Outlook Plan
The Outlook Plan for the Next Decade
The adjustment of National Power Development Plan VII • Electricity production and import: 265–278 billion
has been issued by the Prime Minister in 2016. It is focusing kWh in 2020; 400-431 billion kWh in 2025; 572–632
on Renewable Energy Development and Power Market billion kWh in 2030.
Liberalisation: • Prioritise the development of renewable energy
sources for electricity production; increase the
• The specific objectives: Provide electricity for proportion of electricity generated from renewable
the domestic demand, satisfy socio-economic energy sources (excluding large–scale, medium-scale
development objectives with average GDP growth and pumped storage hydro power) up to around 7% in
rates of 7% during 2016-2030. 2020 and above 10% in 2030.
• Commercial electricity: 235-245 billion kWh in 2020, • Accelerate the programme of electrification in rural
352-379 billion kWh in 2025; 506–559 billion kWh in and mountainous areas to ensure that in 2020 most of
2030. the rural households have access to electricity.
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Tenaga nasional proudly presents

17-22 SEPTEMBER 2018

116 162 174 188

196 236 242 274

298 316 336

Datuk Seri Ir. Azman Mohd

AUSTRALIA C EPS I 2018

Capital: GDP: Installed Capacity:

Canberra USD1,379.4 47,148

Area: Electrified Rate:

Power Demand by Sector5

Table 1: Power Demand 2017-2018

Actual 2017 Forecast Change Forecast 2018

2 Energy Policy and Electricity Market

National Energy Policy

Supply and Demand of Primary Natural Resources in Australia

Australian National Electricity Market Overview Laws and Regulations

The National Electricity Market (NEM) commenced on

AEMO Council of Australian Governments

Western Australia Electricity Market

Northern Territory Electricity Market

Electricity Consumption Forecast and Expected Annual Growth Rate22

Electricity Exported and Imported into Australia as at end 2017

Electricity exports (million kWh) = 0

Electricity Tariff Structure in Australia23 Types of Tariff Structures

3 Power Generation, Transmission and Distribution

Generation by Fuel Type, Capacity and Production as at March 201825

Figure 3: NEM Installed Capacity

Note:Existing includes Announced Withdrawal. This data is current as at 16 March 2018

Figure 4: Electricity Supply Structure26

TRADING RIGHTS POWER STATIONS CAPACITY (MW) OWNER

TRADING RIGHTS POWER STATIONS CAPACITY (MW) OWNER

TRADING RIGHTS POWER STATIONS CAPACITY (MW) OWNER

TRADING RIGHTS POWER STATIONS CAPACITY (MW) OWNER

Figure 5: Power Plants in Australia27

Power and Development Plan

Based on the current Large-scale

4 Reduction of Carbon Dioxide Emissions

Renewable Energy Target (RET)

Emissions Reduction Fund

Encouraging Innovation in Clean Energy

Feed-in Tariffs (FIT) provide individuals

FIT is a payment from either a

A gross FIT is a payment for the total amount of electricity generated.

Figure 8: Production of Renewable Energy by Various Resources28

Renewable Energy Generation

5 Advanced Metering Infrastructure/Smart Grid Deployment

6 Latest Technology and Innovations

Small-scale batteries are also being used as part of broader

7 Major Challenges or Transformation

CAMBODIA C EPS I 2018

Capital: Population: Percentage of

Power Demand by Sector

Table 1: Power Consumption by Sectors

Total Power Projected Power

1 Energy Policy and Electricity Market

Policy and Regulatory Framework

As the electricity sector in Cambodia is fundamentally

Figure 1: Governance of the Electricity Sector in Cambodia