WORLD NEWS
4 MAY 2009 INTERNATIONAL WATER POWER & DAM CONSTRUCTION
WORLD
NEWS
WORLD
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T
HE AUSTRALIAN GOVERNMENT
has bowed in to pressure from
those opposed to its carbon
trading plans by delaying the start of
the scheme by one year.
Prime minister Kevin Rudd said that
the delay will help Australian compa-
Australia delays start of
carbon trading plans
nies manage the impacts of the global
recession and also announced a
number of other changes to the Carbon
Pollution Reduction Scheme (CPRS).
The CPRS will now st art in July
2011 with an initial one-year fixed-price
phase during which an unlimited
number of permits will be issued to
liabl e compa nies. Rudd also
announced new targe ts for carbon
emissions in Australia.
Other concessions made to big busi-
nesses opposed to the carbon trading
scheme include a ‘Global Recession
Buffer’ for emissions-intensive indus-
tries and funding for energy efficiency
investments.
The move is a blow to the Rudd gov-
ernment, which put the CPRS at the
heart of its policies and which recent-
ly agreed to play host to the newly-cre-
ated Global Carbon C apture and
Storage Institute (GCCSI). Emissions
trading was to have begun in 2010,
cover ing around 75% of Australia’s
emiss ions and six greenhou se
gases.
The move to delay the scheme has
been criticised by green groups, but
others feel that the outlook for carbon
trading in Australia is now more clear
following months of debate and criti-
cism of the scheme.
The one-year fixed-price phase will
apply between 1 July 2011 and 30
June 2012, with each carbon permit
costing A$10. From 1 July 2012, busi-
nesses cover ed by the scheme will
have to purchase permits at the pre-
vailing market price. The fixed-price
permits available in the first year will
not be bankable for use in later years.
Emissions intensive trade exposed
(EITE) industries will be able to take
advantage of the Global Recession
Buffer scheme, which will see the
biggest polluters receive almost 95%
of their permits for free.
Alongside the changes to the CPRS,
Rudd also announced plans to
increase Australia’s target for emis-
sion cuts to 25% over 2000 levels by
2020 if a new global greenhouse gas
agreement is reached at December’s
UN conference in Copenhagen.
It represents a proposed increase
on the country’s current target of
reducing carbon emissions by 5-15%
over 2000 levels by 2020, and is con-
ditional upon nations agreeing to sta-
bilise levels of CO2 equivalent at 450
ppm or lower by mid-century at the
Copenhagen meeting.
T
HE POVOA DO VARZIM,
Por t ugal, off-shore electricity
generation project based on
Pelamis wave power machines has
been put on hold following the col-
lapse of one of its main financiers
Babcock & Brown.
Opened in September last year
amid much fanfare as a world first in
producing el ectricity from wave
power, this pioneering installation is,
at least for now, dead in th e water
having functioned for only a few
weeks in a stormy process of
research and development
The first problems started to sur-
face when the 3 x 0.75MW units had
to be taken out of service almost
immediately and dismantled because
of technical problems. And now one of
the main investors in the project,
which had a start-up cost of Euro 9M
(US$12.3M), is bankrupt.
The structure, 5km out to sea off
the coast of norther n Portugal, was
put into service officially in September
by Economy Minister Manual Pinho
after three years of development.
"The first project in the world for the
commercial exploitation of wave
energy" said the minister as he
launched what was to be the begin-
ning of a much larger venture, a so-
called "wave park."
The project consists of three units
built like articulated sea snakes
(“pelamis” means sea-snake) that
float semi-submerged and undulate
with the movement of the waves to
generate current.
The units were taken ashore sev-
eral times for technical checks but
since November they have been lying
inert in the northern port of Leixoes.
"There was a recurrent problem
with the movements of the hydraulic
screws in the three machines, and this
is why they have been removed from
deep water," said a spokeman for the
company at the time. But later the
problem was recognised as more gen-
eral, although still not specified.
Jorge Cruz, a senior executive in the
group that is the main partner in the
project, Morais Energias de Portugal,
said that the machines had a hard
winter in maritime conditions, and had
been brought ashore for repairs.
However what could be the final
blow to the scheme has fallen with the
collapse of one of its main investors,
Australian investment group Babcock
& Brown, which owns 35% of the
Ondas de Portugal consortium, creat-
ed to develop the system. EDP owns
45% of the entity and Portuguese elec-
trical engineering group Efacec 20%.
By September, at the launch of the
Povoa project, B&B had already fallen
victim to the worldwide credit squeeze
as the extent of its indebtedness, and
its difficulties in raising finance, led to
a crash dive in its share price.
Eventually its stock value fell to virtu-
ally zero against an indebtedness of
A$9.6B.
By January the firm was on the
verge of complete collapse after share-
holders in New Zealand rejected a
financial restructuring plan, forcing it
into administration.
Meanwhile UK company Pelamis
Wave Power, the technology provider
for the Povoa project, has announced
the signing of a contract with E.ON UK
to develop a similar project in
Scotland using a new generation of
power converters.
Pelamis wave power demo on hold in Portugal
Vietnam banks in loan deal for Ban Chat scheme
L
OANS TOTALLING VND2.6T
(US$146M) have been agreed by
four local banks for the Ban Chat
hydro power project in Vietnam, which
began construc tion three years ago
but is now scheduled to be op era-
tional by early 2012.
The lead bank for the scheme is
the Bank for Agriculture and Rural
Development (Agribank), which has
agreed to loan 56% of the total to the
220MW scheme being developed by
Electricity of Viet Nam (EVN).
The o ther three banks pr oviding
loans under the deal are the Bank for
Investment and Development of Viet
Nam (BIDV), the Bank for For eign
Trade of Viet Nam (Vietcombank) and
the Gl obal Petro Commercial Joinst
Stock Bank.
Work on the Ban Chat project, on
the Nam Mu river in Than Uyen district
of Lai Chau province, commenced
about three years ago. The project has
a total development budget of
VND8.6T (US$485M), and the new
loans are, therefore, approximately
30% of the cost.
Construction of Ban Chat began in
2006 and initial plans were to have
the plant operational b y 2010. The
plant is now scheduled to be operat-
ing in the first quarter of 2012 and
generate 1,300GWh of elec tricity
annually. The project is also to give
flood control benefits.
Hydro power capacity in Vietnam is
estimated to reac h 8.8GW in 2010
and produce 35,000GWh of electrici-
ty annually.
Power deman d in the country is
forecast to reach up to 100,000 GWh
per year by 2010.
The hydro asset base is estimated
to be 15GW by 2020, and generate
60,000GWh p er year. The forecast
power demand by then is more than
200,000GWh of electricity per year.