WORLD NEWS
4 FEBRUARY 2009 INTERNATIONAL WATER POWER & DAM CONSTRUCTION
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NEWS
WORLD
NEWS
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T
HE PEOPLE'S REPUBLIC OF
China's (PRC) push to make its
energy sector cleaner and more
efficient is to receive increased sup-
por t f rom the Asi an Development
Bank (ADB).
ADB will provide three technical
assistance grants totalling US$2.8M
to support government initiatives to
reduce sulfur dioxide gas emissions,
increase energy savings, and
ADB loan to help strengthen
China's energy sector
strengthen a fund that supports clean
energy projects.
Over the past two decades the
PRC's economy has grown at an aver-
age rate of over 9.5% a year. But the
heavy reliance on coal for the bulk of
its surging energy needs has resulted
in harmful levels of sulfur dioxide and
other air pollutants that are the primary
cause of acid rain.
“PRC is confronted with serious envi-
ronmental challenges that not only
affect domestic production, but also
have significant links with climate
change,” said Anil Ter way, Director,
Energy Division of ADB's East Asia
Department.
To support the government's target
of cutting sulfur dioxide emissions by
10% between 2006 and 2010, an ADB
technical assistance grant of
$500,000 will be used to design and
implement a national emissions trad-
ing system. This will provide a financial
incentive to companies to curb emis-
sions and complement other govern-
ment measures to reduce air pollu-
tion. It follows ADB backing of a pilot
sulfur dioxide trading scheme in
Taiyuan City in 2004.
ADB will al so provide technical
assistance totalling $1.5M to sup-
port the government's goal of
making energ y savings of 20% by
2
010. It will be used to look at steps
needed to attract international finan-
cial institutions to invest i n energy
efficiency and conservation projects.
Presently, provincial governments in
the PRC lack the capacity to readily
initiate energy projects that could
potentially tap external financing.
The technical assistance will also
help improve t he scheduling of
power generation by giving higher pri-
ority to zero- and low-carbon dioxide
emitting power plants.
The PRC's China Clean
Development Mechanism Fund –
designed to encourage clean energy
projects that generate certified emis-
sions reductions (CERs) that can then
be sold to developed countries that
need them – is also getting ADB policy
and advisory assistance worth
$800,000. It will be used to build up
the capacity of the Fund for promoting
and supporting climate change-relat-
ed projects. The PRC is estimated to
have the potential to generate about
50% of total worldwide annual CERs
under the Clean Development
Mechanism established in the Kyoto
Protocol.
The financial support is in the form
of grants with $1.4M coming from
ADB's regular technical assistance
funding program and $1.4M from its
Climate Change Fund.
This Fund was established in May
2008 to help developing member
countries put in place projects that
mitig ate the adverse impacts of cli-
mate change and bols ter e nergy
security.
Endesa Chile ends suit over water regulation
E
LECTRIC POWER UTILITY
Endesa Chile has ended its suit
over restrictions on how it is
allowed to be i nvolved in regulatio n
of water use for hydro power.
Progress with various parties, such
as those involved with irrigation i n
river basins in Chile, has led the util-
ity to drop the suit ag ainst the
Treasury dept.
Endesa Chile said some agree-
ments have been reached that will
enable it to become involved in future
in some regulatory committees. It
added that its collaborative approach
has received cooperation from the
general waters authority DGA
(Direccion General de Aguas) and the
hydraulic works authority (Direccion de
Obras Hidraulicas).
The suit agains t the Government
w as brought just over a year ago
a nd both parties have agreed to
its termination.
More than 70% of the utility's
almost 4.8GW installed generating
capacity in Chile is hydro power. Key
plants are: Ralco (690MW);
Pehuenche (570MW); Pangue
(467MW); El Toro (450MW); Rapel
(377MW); Anluco (320MW); Abanico
(136MW); Curillinque (89MW); Sauzal
(76.8MW) and Isla (68MW). The
Palmucho plant (32MW) was commis-
sioned just over a year ago.
Better hydrology in Chile in 2008
helped to offset the effects of higher
fuel costs elsewhere in the utility's
generation portfolio.
In total, including assets in other
Latin American countries, it has
installed capacity of 12.7GW.
A key foreign asset is El Chocon
scheme (1320MW) in Argentina, which
comprises El Chocon (1200MW) and
Arroyito (120MW). In 2008, the utility
experienced weaker hydrology in the El
Chocon area.
In Colombia, the utility's prime hydro
assets are Guavio (1163MW), Betania
(540.9MW), Guaca (324.6MW) and
Paraiso (276.6MW).
The key asset in Brazil is the
Cachoeira Dourada plant (665MW) in
Goias, which is held by Endesa Brasil.
Endesa Chile's main hydro assets
in Peru are Huinco (247MW), Chimay
(151MW), Matucana (128MW),
Callahuanca (80MW) and Moyopampa
(65MW).
Brazil hydro aces gas; funding for Santo Antonio
I
N HYDRO DEVELOPMENT IN BRAZIL
the country has seen such high levels
of precipitation recently that it is look-
ing at a strategic cutback in imported
natural gas, and project development
has also seen major funds provided for
one of the largest schemes of recent
years – Santo Antonio.
The Ministry of Mines and Energy
(MME) said that the current high stor-
age levels in reservoirs had given
security of energy supply in the cur-
rent season, and so presented an
opportunity for a reduction of gas
imports.
Rainfall in December and January
was much higher than average, and
the trend is expected to continue this
month.
Based on the good hydrological
conditions, the Electricity Sector
Monitoring Committee (CMSE) had
decided to review the imports of gas,
said MME.
In a further major step forward for
hydro power in the country, Brazil's
national development bank, BNDES,
has approved R$6,100M
(US$2,575M) of funds to help the
concessionaire build the 3150MW
Santo Antonio project. The financing
equates to 46.6% of the project
budget, and, when combined with
funds from other financial organisa-
tions, brings the total debt to almost
two-thirds of the budget.
The concession was won by
Madeira Energia SA (Mesa), a consor-
tium led by Furnas and Odebrecht and
including Andrade Gutierrez, Cemig
and a private equity fund held by
Santander and Banif.
BNDES is providing the funds to
Santo Antonio Energia (SAESA), which
is a wholly-owned subsidiary of Mesa.
Mesa has contracted Consorcio
Construtor Santo Antonio (CCSA) to
build the project, with the first of 44
generation units expected to be com-
missioned by May 2012. The JV
includes Odebrecht, Andrade
Gutierrez, Alstom Hydro Energia
Brasil, Areva Transmissao and
Distribuicao de Energia, Siemens,
Andritz Hydro, Voit h Siemens and
Bardella.
Santo Antonio is one of two projects
in the 6450MW Madeira scheme. Its
sister project is the 3300MW Jirau
scheme.