Wednesday, October 24, 2012

Questions over China dams

Questions over China dams
The Phnom Penh Post
By Shane Worrell
October 23rd, 2012

http://www.phnompenhpost.com/index.php/2012102359350/National-news/questions-over-china-dams.html

Some questions remain about whether hydro dams on the upper Mekong
River in China exacerbated conditions during Cambodia's devastating
drought of 2010, environmental groups say, as China's dam program powers
ahead.

When the first power-generating unit was switched on last month at
China's giant 262-metre tall Nuozhadu hydroelectric dam, which will be
the largest on the river when completed in 2014, state-run newspaper the
China Daily sang its praises as a dam that would significantly reduce
carbon dioxide emissions.

Extensive research, the China Daily added, also showed potential
impacts of the Nuozhadu and others dams on countries downstream –
including Cambodia, where fishing communities along the Mekong fear
Laos's proposed Xayaburi dam – would be minimal.

Research showed "water flow in the river's China section accounted for
only 13.5 per cent of the river's total, making the country's hydropower
development have little impact downstream", it said.

Ame Trandem, Southeast Asia program director for International Rivers,
said, however, that China's section of the Mekong, known in that country
as the Lancang River, provided as much as 50 per cent of the river's
total water flow during the dry season, when countries including
Cambodia depend on it most.

An example of how important this flow is to Mekong countries, Trandem
said, was the 2010 drought – one of the worst in 50 years – when China
began filling the reservoir of its giant 4,200-megawatt Xiawan dam.

"[This] exacerbated the drought that the region was experiencing,
because there was little rainfall in the dry season that year," she
said.

"Essentially, they were holding back water that could have come
downstream."

NGO collective Save the Mekong Coalition wrote to the Mekong River
Commission at the time, inquiring about the potential effects China's
dams were having on drought conditions and had been promised a detailed
report, Trandem said.

The coalition has yet to receive this analysis, she said, while China
is not obliged to provide Mekong countries details of their research.

In an emailed response this week, the MRC secretariat said it had not
undertaken specific analysis of the effects of China's dams on Cambodia
during the 2010 dry season.

"The MRC released various assessment reports at the time of the 2010
drought and also carried out analysis at the request of member
countries," the statement says.

"Additional data from China was also released. The MRC in 2010 provided
its analysis on the drought situation in an opinion-editorial piece
published in the Bangkok Post newspaper.

"The analysis revealed that the low water levels in the Mekong and its
tributaries were the result of extreme natural conditions. Very low
rainfall for this dry season, following a particularly early end to the
wet season in 2009, led to river levels below those seen in at least 50
years."

Srisuwan Kuankachorn, co-director of Towards Ecological Recovery and
Regional Alliance, a member the Save the Mekong Coalition, said it was
"not an overstatement" to draw a link between China's dams and the
drought situation in Cambodia in 2010.

China has announced plans for at least seven hydroelectric dams on its
section of the Mekong, although reports outside of China suggest it
plans to build more.
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Friday, October 19, 2012

Congo’s $9 Billion Hydropower Plant To Supply Power To Southern Africa

http://www.ventures-africa.com/2012/10/drcs-9-billion-inga-iii-hydropower-plant-to-supply-power-to-southern-africa/

Congo�s $9 Billion Hydropower Plant To Supply Power To Southern Africa

Posted on October 19, 2012

VENTURES AFRICA � The Democratic Republic of the Congo (DRC) has
revised plans to build the Inga III hydropower plant, in order to
account for the provision of 2,500 megawatts of energy to southern
African countries.

The government intends the hydropower plant � located to the west of
the country, at the world�s largest waterfalls, Inga Falls � to
produce 4,000 megawatts of energy in total, of which 2,500 may be
provided to Botswana, Namibia and South Africa.

It is expected that construction of such a plant will cost over $9
billion, with the government set to discuss three received bids with
applicants next month, a member of the Inga III Steering Committee
Vika di Panzu said, speaking to Bloomberg in an interview in Kinshasa
on Friday. He added that construction is expected to start in 2016,
once negotiations and details are finalised.

The country is pressing to move forward on the project, with di Panzu
saying that the committee will consider final feasibility studies from
the three bidding teams next month. He revealed that teams vying for
the contract include a partnership between China�s Three Gorges Corp.
and Sinohydro Corp; a second group sees Korean companies Daewoo Corp.
and Posco team up with Canadian SNC-Lavalin Group Inc.; with the third
and final bid coming from a Spanish pairing of ACS Actividades de
Construccion y Servicios SA and the Eurofinsa Group.

Securing financing for the $9 billion power plant has been a
problematic issue over recent years, with two plans for funding
already having fallen through delaying the launch of the project �
which is projected to take six years to complete. Di Panzu detailed
that the DRC�s latest financing plan hopes to see a partnership
between the government and donors including the World Bank and the
African Development Bank.

If the Inga plant is to source power to South Africa, a further hefty
issue for the construction team will be the introduction of sufficient
power cables to enable power to reach Africa�s largest economy. In
order to provide power to South Africa�s Witkop on the Eastern Cape
from the Inga plant, 3,600 kilometres of power lines will need to be
laid, estimated to cost in the region of $3 billion.
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Monday, October 15, 2012

Leaky reservoirs (Global Times)

Leaky reservoirs
Global Times
August 23, 2012
By Wen Ya

http://www.globaltimes.cn/content/728547.shtml

Rainstorms that wracked Hunan on Monday and Tuesday have caused 14 small
reservoirs in the province to spill over, affecting 20,000 people and
106 buildings, according to local reports. There were no fatalities,
though the spills highlighted the dangers associated with many small-
and medium-sized reservoirs in China.



Sometimes, these dangers can prove fatal. When typhoon Haikui hit the
Shenjiakeng reservoir in Daishan county, Zhejiang Province on August 8,
the dam held fast against the tempest. Unfortunately, two days later the
strain proved to be too much and the dam broke, leaving 11 people dead,
the Xinhua News Agency reported.



These reservoirs are among the 80,000 smaller dams throughout the
country, which have a holding capacities between 100,000 and 10 million
cubic meters, according to the Southern Weekend.



Half of these reservoirs are believed to have defects. Most of them were
built between the 1950s and 1970s using manual labor, according to the
Ministry of Water Resources (MWR).



"During that period, construction standards were poor, and there
wasn't much by way of geological analysis. Without sufficient ongoing
maintenance, the reservoirs have many hidden risks and problems," Ding
Liuqian, a vice president of the China Institute of Water Resources and
Hydropower Research, told the Global Times.



The government has launched a program to reinforce these dams, however
experts have cautioned that the pace of the project risks amplifying the
problem.



A history of danger



"Since 1954, there have been 3,515 incidents of reservoirs breaking,"
Chen Lei, minister of water resources said at a national conference in
April, 2011, adding that the vast majority were smaller dams.

"

In 2010 alone, seven small dams broke and caused tragedies, which
reminded us that we must improve small reservoirs not only to
consolidate our flood control systems, but also to ensure drinking water
in rural areas and agriculture water supply," Chen was quoted by the
ministry's website as saying.



"Small reservoirs play an important role in drinking water supply and
irrigation. They are a lifeline for these people," Xiong Yikan, a
retired senior engineer with the Jiangxi Provincial Water Construction
Planning and Design Institute, told the Global Times.



Taking action



Local authorities often dispatch staff to these reservoirs during
flood season. 



Hunan Authorities have assigned a staff member for each of the more than
11,200 small reservoirs in the province, according to the Xiaoxiang
Morning Herald. 



As early as March, reservoirs were scrutinized in Zhejiang Province, to
examine how they would cope with the risks associated with such
problematic reservoirs, according to the website of the provincial water
resources department of Zhejiang. 



The problem is the most pronounced in Hunan and Jiangxi, which
respectively have 9,300 and 7,900 reservoirs of the smallest class,
according to Chen.



A project designed to reinforce small and medium reservoirs was
launched by the central and local governments in April, 2011. 



The central government invested 38.14 billion yuan ($6 billion) to
reinforce 15,900 key small reservoirs by 2013, while the local
government would be responsible for 25,000 smaller reservoirs that would
need to be finished by 2015, according to Chen.



However, not everyone is pleased with the demands that the project be
carried out rapidly.



"The pace is too fast," Xu said. "Reservoir-related projects need time
to investigate and finish. However, the higher authorities usually
require the projects be completed in a rush."



A number of medium-sized dams had previously been allocated 10 million
yuan funds each to be reinforced; however, they are often required to be
completed within three months.



Xu said that this is a problem, because in these cases it takes 28
days for concrete to properly solidify and during flood seasons no work
can be completed, which means many reports on construction progress will
be faked, while the work will be rushed.



It is unclear whether the three-month requirements still stand.



"Reservoirs are a special project for the good of the public. We try our
best to ensure their quality." Xu said. "Because of this, we are under a
lot of pressure since there so much work to do while we are short of hands."



A thankless task



"The small reservoirs were built using comparatively small
investments, so they bring fewer benefits for the construction teams,"
said Xiong, adding that the age of the facilities and their lower status
means it's difficult to get the right data to formulate construction
plans.



"Even if I can find the data, dams from this period don't necessarily
have accurate information. If the project then has problems, I'm the one
that's responsible for them. No one wants to take on this kind of duty." 



There are also financial issues at stake, due to the fact that
provincial, city or county governments were responsible for constructing
them. Even if the provincial government provides the half of the share,
it's not easy for the local government to provide the rest, Li Liangwei,
an official in construction and management with the Jiangxi Provincial
Water Resources Department, told the Southern Weekend last week. 



Some counties have 300 small reservoirs in Jiangxi. Assuming one of them
requires an investment of around 800,000 yuan, there would need to a be
a total investment of over 100 million yuan to cover all of them, which
would represent a huge financial burden for the county.



These projects also generate conflicts with farmers, who are opposed
to having the water discharged as that could lead to financial losses,
particularly in cases where farmers have gotten used to renting fishing
permits. There are no compensation funds in these cases, so it's up to
construction teams to persuade the farmers, Li said.



In addition to these problems, the ownership status of these small
reservoirs is often murky at best. Originally built by villages, for
villagers and funded via local agricultural taxes, times have now
changed given the fact that those taxes were removed in 2006.

Now local governments have limited funds for their maintenance.



"In some places in Guangxi, staff members with salaries below 1,000 yuan
can't even receive their salaries on time," Xu said.



"Without clear ownership or benefits, no one wants the job of running
it."



In an effort to address the issue, since 2005, several Guangxi
authorities including civil affairs, agriculture and water resource
authorities have backed a plan that would allow farmers associations to
manage the reservoirs. 



Xu said that this has worked well in some instances, but in other cases
it's been less successful.
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African land grabs are 'out of control'

Energy Resources
African land grabs are 'out of control'

Oxfam called on the World Bank to stop aiding foreign investors,
including the oil-rich Persian Gulf monarchies, buying up vast tracts
of farmland in Africa.

Published: Oct. 4, 2012


NAIROBI, Kenya, Oct. 4 (UPI) -- The Oxfam charity has called on the
World Bank to stop aiding foreign investors, including oil-rich
Persian Gulf monarchies that can't grow their own food, buying up vast
tracts of farmland in Africa and other developing regions."The rush
for land is out of control and some of the world's poorest people are
suffering hunger, violence and greater poverty as a result," Oxfam
Chief Executive Barbara Stocking said from London.

"The World Bank is in a unique position to help stop land grabs
becoming one of the biggest scandals of the century.
"Investment should be good news for developing countries -- not lead
to greater poverty, hunger and hardship."
International Land Coalition, which monitors land-related projects,
said from 2000-10 some 261 million acres of arable land, much of it in
impoverished African states, were acquired by outsiders.

Oxfam calculated in a report released Thursday that's enough to feed
nearly 1 billion people in a world where food shortages are growing
steadily worse as the global population soars and economies crumble.

Yet, Oxfam says, much of the land that's been taken over is being used
by speculators, including U.S. banks, hedge funds and other high-
profile institutions, to grow biofuels to sell for hefty profits
rather than produce food, either for poor Africans or hungry Arabs.
"No one should believe that these investors are there to feed starving
Africans, create jobs or improve food security," said Obang Metho of
Solidarity Movement for New Ethiopia, a U.S. campaign group.

British environmental expert John Vidal recently observed that the
land rush, "which is still accelerating, has been triggered by the
worldwide food shortages which followed the sharp oil price rises in
2008, growing water shortages and the European Union's insistence that
10 percent of all transport fuel must come from plant-based biofuels
by 2015."

The World Bank has tripled support for land projects to $6 billion-$8
billion a year over the last decade. No data are available on how much
of that is used for land grab acquisitions.

However, Oxfam claims 21 formal complaints have been made by
communities harmed by World Bank-supported investments with land
rights allegedly violated.

The World Bank's lending arm, the International Finance Corp., said it
"does not finance land acquisitions for speculative purposes. We
invest in productive agricultural and forestry enterprises that can be
land intensive to help provide the food and fiber the world needs."
A 2010 report by the Independent Evaluation Group, the World Bank's
official monitoring body, said some 30 percent of bank projects
involved involuntary resettlement.

Britain's Guardian newspaper reported that the IEG estimated that "at
any one time, more than 1 million people are affected by involuntary
resettlement in active World Bank-financed projects."

A study on the land grab issue by the California's Oakland Institute,
released in June, observed that Harvard and other major U.S.
universities were working through British hedge funds and European
speculators to buy or long-lease vast areas of African farmland.
The report, which covered Ethiopia, Tanzania, South Sudan, Sierra
Leone, Mali and Mozambique, said that Harvard and other universities
with large endowments have invested heavily in land grabs in recent
years.

"The scale of the land deals being struck is shocking," said Oakland
Institute Executive Director Anuradha Mittal.
"The conversion of African small farms and forests into a natural-
asset-based high-return investment strategy can drive up food prices
and increase the risks of climate change."

Middle Eastern states, led by Saudi Arabia and the United Arab
Emirates plus China, were largely responsible for the initial large-
scale land purchases, primarily to grow food for their burgeoning
populations that geography prevented from growing for themselves.
But these days, says the Oakland Institute, Western funds are behind
most of the big deals.

"Companies have been able to create complex layers of companies and
subsidiaries to avert the gaze of weak regulatory authorities," Mittal
said.

"Analysis of the contracts reveals that many of the deals will provide
few jobs and will force many thousands of people off the land."
Oxfam analysts said speculators involved in several thousand land
deals concluded in recent years left land in an area the size of
Britain either idle, "for its value to increase," or gave it over to
growing biofuels for U.S. or European vehicles.

Read more: http://www.upi.com/Business_News/Energy-Resources/2012/10/04/African-land-grabs-are-out-of-control/UPI-54131349364080/#ixzz29O1xQ77V
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Sunday, October 14, 2012

Funding: ADB and China still in partnership

[Apologies for the late posting of this article. We thought it was
useful still to circulate this piece despite being published in late
September]

Funding: ADB and China still in partnership
By Paul J Davies
23 September 2012
Financial Times
http://www.ft.com/cms/s/0/1e2224c8-fd51-11e1-ba37-00144feabdc0.html#axzz294PaAS7d

The Diamer-Bhasha Dam, in a region of Pakistan formerly known as the
Northern Areas, near the border with Indian-administered Jammu and
Kashmir, is a planned $12bn, 4,500MW hydropower and reservoir project.

It would help significantly with both water and power shortages,
according to the government.

But as the project struggles to secure funding from foreign governments
and multilateral donors, it is providing a fascinating insight into the
strange, double-edged relationship between the Asian Development Bank
and China.

The two are in effect competitors in the Pakistan project and, if China
wins, the concern of international groups would be that it may undermine
the kind of standards the ADB would look to guarantee.

The multilateral bank has been criticised in Pakistan for dragging its
feet over the deal and even faced claims it had walked away.

But its country head told local press that it needed to ensure that
backing from other lenders is also in place before it can commit partial
funds and that the project complies with safeguards relating to
environment, resettlement and procurement, as well as meeting
transparency standards.

China is deeply interested in Pakistan as an overland supply route for
energy from the Gulf and looks likely to become more involved in
projects such as the deepwater port at Gwadar on the Arabian Sea.

With Diamer-Bhasha, as with other projects outside China historically,
Beijing is expected to overlook some of the more costly and awkward
aspects of higher standards if it is handed the work through an
uncompetitive tender. Russia, incidentally, is pitching for the same
arrangement.

The great irony of this is that one of the main reasons why the ADB
still lends money to China is to bring higher governance and safety
standards to the country - and thereby legitimise some of its own
infrastructure projects.

Rajat Nag, managing director-general of the ADB, says: "Why does China
borrow from us? It is an important question which our shareholders,
including China, constantly discuss."

China certainly does not need the money these days. It is the bank's
third largest shareholder and the only other country alongside the US
and Japan to have its own full-time seat on the board. Moreover, it has
held that position since 1986.

Where things have been changing as China has grown rapidly over the past
decade are in its borrowing.

For a long time it was the largest single borrower, but in the past two
years it has begun to drift down the rankings, to second in 2010 and
third in 2011. It still pulls down about $1.3bn a year from the bank,
but has also become a donor, helping the bank increase its capital base
by $110bn in 2009. Mr Nag says: "Over time it will become a major donor."

China nowadays is more likely to borrow from the ADB to support
investment in environmental technology and green measures, which
accounts for two-thirds of the ADB money it gets, says Mr Nag.

The rest goes to poorer regions such as the far western Xinjiang
province - which by coincidence is where any oil pipeline from Pakistan
would arrive in China. Mr Nag says there are three important reasons why
China still borrows from the ADB.

Firstly, the bank's presence in environmental projects and technology
helps the country gain access to "best practice" and equipment.

The second reason - and this, he says is the one that the Chinese
government itself most talks about - is that ADB guidelines will apply
to the whole of a project in which it is involved. These include
standards on environmental, social and economic safety and sustainability.

"This fact and our involvement make it easier for the government to
impose those standards within its own country," he says.

The final reason for lending to China is that it gives the country
access to information and knowledge about how pension funds and other
forms of institutional social savings work.

Mr Nag says, in spite of China's growing economic might on the world
stage, the thing to remember is that it still a poor country.

"Per capita income is still only about $3,700 and our cut-off is at
about $7,000," he says. "Graduation from ADB assistance usually occurs
within five years of reaching that cut-off income level."

As China's economic power continues to grow, and so its donations to the
bank, what about its influence over the direction of the ADB?

Mr Nag plays down this aspect, particularly in light of the big
reworking of how the bank functions and decides projects that was
undertaken in 2008 and given the title of Strategy 2020.

This, he says, has limited the bank's focus to five project types:
infrastructure, education, environment, financial sector development and
regional co-operation and integration.

Individual countries are also handed multiyear budgets and the ADB teams
then work with local governments to find suitable projects on which to
spend the money.

As third-biggest shareholder China still holds only about a 6.5 per cent
stake, significantly less than the US and Japan.

If China poses any threat to the ADB's mission, then it will do so as a
competitor from the outside on projects like Diamer-Bhasha rather than
from the inside as a member with growing economic clout.
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Friday, October 12, 2012

Kenya: Govt Steps Up Geothermal Power

http://allafrica.com/stories/201210041391.html

Kenya: Govt Steps Up Geothermal Power

3 October 2012


Kenya has inaugurated Africa's biggest geothermal power project in a
bid to meet its growing need for electricity and lower its consumption
of nonrenewable energy.

The 280 megawatt (MW) Olkaria Geothermal Project was commissioned by
Kenya's president, Mwai Kibaki, in July. It is being built at a cost
of 82.5 billion Kenyan shillings ($980 million) and is due for
completion in June 2014.

Experts say that it should be an important source of "green" energy in
a country that has seen its hydropower production hit by worsening
drought.

The project "will be an effective source for power for Kenya in the
sense that it will help the country manage its competitiveness in the
region and in global markets, especially for agro-based industries
that for many years have suffered from costly, inefficient and
unreliable power," said Chris Ackello Ogutu, an agricultural economist
at the University of Nairobi.

If farmers get access to cheaper and more reliable geothermal energy
to help process their crops, "then their vulnerability to climate
change-related stresses (will) diminish," he said.

Drilling of steam wells for the new facility has already taken place,
and these will generate power even before the permanent geothermal
plant has been put in place, officials say.

The new plant in particular will help Kenya reduce its heavy reliance
on hydroelectricity, which is an increasingly uncertain energy source
as rainfall becomes more erratic, a situation that experts believe is
related to climate change.

Two geothermal units, each with an output capacity of 140 MW of
electricity, will make up the new plant at the Olkaria Complex, some
80 km (50 miles) northwest of Nairobi, Kenya's capital.

Two other geothermal plants constructed in the 1980s and 1990s are
already in operation at the complex, which was Africa's first
geothermal project. The new plant will be Africa's largest and will
almost triple Olkaria's capacity to 430 MW.

The project is being funded by the Government of Kenya, the Kenya
Electricity Generating Company (KenGen), the World Bank, European
Investment Bank, and the development agencies of France, Germany and
Japan.

The geothermal project is expected to boost current Kenya's power
output of 1,588 MW by 18 percent, according to Eddy Njoroge, managing
director of the Kenya Electricity Generating Company. The company is
Kenya's leading power generator, producing nearly 80 percent of the
country's electricity.

80 PERCENT GREEN POWER

Njoroge adds that the project will increase the proportion of KenGen's
electricity derived from green sources to more than 80 percent. (The
remainder comes from nonrenewable sources such as diesel generators.)

Geothermal power will contribute more than one third of this green
energy.

The new project is one of several aimed at increasing the capacity of
the national grid by as much as 140 percent over five years to help
meet growth in demand. By 2030, the government plans to raise power
output to 15,000 MW, from a current 1,500 MW.

"We have plans that in five years' time we will be in a position to
contribute more than 50 percent of our total electricity capacity
(from geothermal power) so that the country can avoid expensive modes
of generation," Njoroge said.

Experts believe the Olkaria Complex could produce additional
geothermal power beyond that now being tapped.

According to field optimization studies conducted by Mannvit
Consortium of Iceland, the complex is capable of producing an
additional 560 MW of power. Current estimates place Kenya's total
geothermal potential at 7,000 MW.

Nashon Adero, a policy analyst with the Kenya Institute for Public
Policy Research and Analysis (KIPPRA), said the project is one of many
green energy initiatives being promoted as part of the government's
Least Cost Power Development Plan, which looks ahead as far as 2031.

"Geothermal is seen as the preferred power generation for Kenya
because its operation costs are less than other modes of power
generation, and in the long run (it) can help the country achieve a
reduction in unit cost of power by 50 percent," he said.

Geothermal power is less expensive than hydropower, he said, and will
also significantly help reduce the country's greenhouse gas emissions
from fossil fuel power generation.

Emissions from geothermal power generation are just 10 percent of
those from oil-based power generation, Adero said.

He said Kenya's Great Rift Valley gives the country a competitive
advantages in that it offers suitable geological conditions for
harvesting heat from the earth's crust to generate electricity.

"Even though sources of renewable energy in such countries as Ghana
and the Democratic Republic of Congo are significant, these are mainly
hydropower based," he said.

But Kenya lags behind other African countries in terms of per capita
power availability, figures show. Kenya's power availability, for
instance, is less than half that of Ghana, according to the Kenya
Economic Report of 2010, compiled by KIPRA.

And improving power generation alone will not improve the country's
economic prospects, Ogutu warned.

"Policy issues remain problematic and labour costs have tended to make
Kenyan products a lot more expensive than they ought to be," he said.

One of the challenges facing the project has been the relocation of
people to pave way for construction. About 270 homeowners are affected
by the plans, and they will be resettled on a 690-hectare (1,700
acres) parcel of land on which 164 houses are being constructed.
Churches, a school and teachers' accommodation, a library, and a
cattle dip and watering trough will also be built by KenGen.

"We hope to have put the necessary infrastructure in place as well as
completed the resettlement of families by next year in February," said
Njoroge.

Geoffrey Kamadi is a freelance Kenyan journalist based in Nairobi. He
has written widely on science and health issues for local newspapers
as well as online publications.

Read more at AlertNet Climate, the Thomson Reuters Foundation's daily
news website on the human impacts of climate change.
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Eskom eyes African hydropower, transmission prospects

SA's Eskom is planning on supporting a massive dam boom across the
continent, with apparently no regard for the climate-change risks
these projects will bring. (see for example new research on climate
risks to Zambezi dams, some of which are in the Eskom pipeline: http://www.internationalrivers.org/node/7673)
----------------------------

http://www.engineeringnews.co.za/article/eskom-eyes-african-hydropower-transmission-prospects-2012-10-12

Eskom eyes African hydropower, transmission prospects


By: Terence Creamer
12th October 2012
Updated 52 minutes ago


South African electricity utility Eskom has finalised a draft African
strategy, which could result it in taking equity as well as
operational positions in generation and transmission projects in the
rest of the continent, with its primary focus being opportunities in
Southern Africa.

CEO Brian Dames says that strategy is currently being canvassed with
government, Eskom�s sole shareholder, and that the utility�s role in
the rest of the continent will be clarified through that process.

However, the board and the executive were of the view that Eskom
should consider playing a direct role in the African electricity
sector, including as an equity participant in projects.

�We have not made any firm decisions around this, [but] hydro provides
unique opportunity for us and we certainly believe that the Mozambican
projects [Mphanda-Nkuwa and Cahora Bassa North Bank], are quite far
advanced.�

Until recently, Eskom has been importing around 1 500 MW from Cahora
Bassa, but supplies have been reduced to around 900 MW, owing to a
technical fault. Work is currently being undertaken to restore imports
to previous levels, but the restoration process is likely to take some
months yet.

Eskom is already active as an operator of the power system for
Senegal, Mauritania and Mali and the generation system in Uganda, but
the future priority areas will probably be within the Southern African
Development Community (SADC).

The SADC offers �significant future opportunities�, particularly in
securing �cleaner forms of energy�, such as in natural gas and
hydroelectricity.

�We also have this vision that you can build all these projects and
connect them with a significant transmission network . . . [and] Eskom
has built up unique capabilities to design transmission networks, to
build them and to operate them in an integrated grid,� Dames explains.

Eskom�s African strategy is emerging as Africa�s heads of State are
moving to support a pipeline of 15 energy projects, with a combined
price tag of $40.5-billion, to foster further economic growth.

The projects form part of the larger Programme for Infrastructure
Development in Africa (Pida) portfolio, which has been assembled under
the New Partnership for Africa�s Development banner and include four
transmission corridors, nine hydropower schemes and two energy
pipelines.

The Pida projects have been earmarked for development between 2012 and
2020.

The transmission projects included are the North-South Transmission
link, from Egypt to South Africa, with branches mostly into East
Africa; the Central Corridor, from Angola to South Africa, with branch
lines into Central and West Africa; a North African Transmission
Corridor from Egypt to Morocco, with links through Libya, Tunisia and
Algeria; and the West African Power Transmission Corridor, linking
Ghana to Senegal, with branches.

The nine hydroelectric projects include the Great Millennium
Renaissance Dam, in Ethiopia; the Mphanda-Nkuwa project, in
Mozambique; the Inga hydro projects, in the Democratic Republic of
Congo; the hydropower component of the Lesotho Highlands Water Project
Phase 2; the Sambangalou project, on the Gambia river; the Kaleta II,
in Guinea; the Batoka Gorge project, on the Zambia-Zimbabwe border;
the Ruzizi III project, in Rwanda; and the Rusumo Falls development,
being pursued by Tanzania, Rwanda and Burundi.

The two pipelines listed are the Uganda�Kenya petroleum products
pipeline and the Nigeria�Algeria gas pipeline.

The energy projects have been prioritised in line with an African
Union aspiration to raise energy access across the continent to better
than 60% by 2040.
Edited by: Creamer Media Reporter
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Thursday, October 11, 2012

Southwest China hydropower plant starts water storage

SW China hydropower plant starts water storage
Xinhua News
October 10, 2012

http://www.globaltimes.cn/content/737507.shtml

China's third-largest hydropower station began to store water on
Wednesday, slightly affecting the water level of the river it straddles.

The Xiangjiaba Hydropower Station, spanning the Jinsha River, a
tributary of China's longest river, the Yangtze in the southwestern
Yunnan and Sichuan provinces, has been recording rising water levels in
the reservoir since the commencement of the water storage at around 9 a.m..

The water level is expected to rise to 354 meters from the current 280
meters in five to seven days, according to local hydraulic experts.

The power station, with a total installed capacity of 6.4 million kw, is
scheduled to be operational this year. Upon operation of all generating
units, the annual electricity output of the plant is likely to reach
30.7 billion kw-hour.

The water level in the Three Gorges Dam, the world's largest water
control and hydropower project lying in the upper reaches of the Yangtze
River, dropped by 0.04 meters six hours after the water storage began.

Xiao Ke, a senior official with the Three Gorges project, said the
slight drop "was expected."

"In the following days, the water flow into the reservoir will keep
decreasing and it will finally stabilize at 15,000 cubic meters per
second, because of the water storage of the Xiangjiaba Hydropower
Plant," he added.
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Wednesday, October 10, 2012

China and Netherlands to Research Novel Form of Large-scale Tidal Power

China and Netherlands to Research Novel Form of Large-scale Tidal Power
Circle of Blue
October 9, 2012
By Brett Walton

http://www.circleofblue.org/waternews/2012/world/rough-china-netherlands-to-research-novel-form-of-large-scale-tidal-power/

On September 27, Chinese and Dutch officials were in Beijing signing an
agreement to research and develop a novel renewable energy concept that
uses the sea. Called "dynamic tidal power," both nations have high hopes
for the new energy source that would be implemented along the Chinese coast.

Dynamic tidal power (DTP) was invented and patented in 1997 by two Dutch
coastal engineers. It uses a T-shaped jetty that reaches as far as 60
kilometers (37 miles) into the ocean to catch tides that are running
parallel to the shore. This creates areas where there is a height
difference in the water levels, with low water on one side and high
water on the other. By taking advantage of the potential energy created
by this height difference - much like the difference between the top and
the bottom of a waterfall - the jetty, which is lined with turbines,
functions similar to a dam: water flows from one side to the other and
cranks the turbines, which converts the potential energy (of the height
difference) to kinetic energy (from the movement of the turbines), which
can be used to generate electricity. (See diagram image below.)

If testing proves successful, scaling-up the Chinese-Dutch model would
be massive. The turbine-filled jetty would stick out at least 30
kilometers (18 miles) into the ocean and have a power-generating
capacity of roughly 15,000 megawatts, placing it second among all
hydroelectric facilities in the world.

If such a breakthrough were to occur - and it is too soon to say if it
will - it would help China to meet its goal of cutting carbon emissions
while increasing its energy production. China, the world's
second-largest economy, wants to cut carbon dioxide emissions 17 percent
by 2015, according to its 12th Five-Year Plan, which was released in
March 2011.

"A lot of work must be done to determine if dynamic tidal power is a
feasible option for China," said Peng Cheng, the deputy director-general
of the hydropower and water resources planning agency within China's
Ministry of Water Resources. "We hope that a suitable demonstration
project can be designed in the coming year or two. If that demonstration
proves successful, we will have a solid basis from which to investigate
the application of full-scale dynamic tidal power."

The project, which buttresses China's status as a global leader in
renewable energy research, is a joint venture between POWER, a
government-funded consortium of Dutch companies, and a group of Chinese
companies and universities organized by the National Energy Administration.

The three-year agreement has the following goals:

- Determine most suitable sites for dynamic tidal power (DTP)
implementation in China, Korea, and the United Kingdom.
- Complete detailed feasibility studies for two DTP pilot power plants
in China.
- Complete pre-feasibility study for one full-scale DTP power plant in
China.
- Distribute technical information worldwide about DTP.

Testing Needed

There are challenges in developing the concept, however, according to
Brian Polagye, the co-director of the Northwest National Marine
Renewable Energy Center and a mechanical engineer at the University of
Washington. For instance, if the DTP system is built at all, it must be
built large enough to make it economically feasible and strong enough to
withstand storms.

"There's no small-scale deployment," Polagye told Circle of Blue.
"Building any sort of structure that far off the coast comes with
structural challenges. We can do it - just look at oil drilling
platforms - but it is expensive. So it comes down to the cost of the
power produced."

Polagye did not know of any commercial dynamic tidal projects operating
anywhere in the world.

Rather, most tidal power projects completed so far have instead used the
kinetic energy of rising tides to turn an array of turbines strung
across a narrow channel. One of the largest such projects - La Rance in
Brittany, France - has an installed capacity of 240 megawatts.
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Climate change or dam mismanagement? Flooding in Cameroon increasing

Cameroon is experiencing increasing flooding, which is causing dams to overtop, thus worsening the natural flood impacts. Last month, flood releases from Lagdo Dam are thought to have resulted in many deaths and huge displacement in downstream Nigeria (http://allafrica.com/stories/201209190151.html). Dams be harder to manage as climate change makes rainfall  more unpredictable,  yet new dams are going to be built that have not been planned with this risk in mind (the most immediate is Lom Pangar, just approved by the World Bank: http://tinyurl.com/98nvmea)

--------------------------------------------------------------

Experts Debate Cause of Increased Flooding in Cameroon
Cameroon has received heavy rain and flooding during the past year. Some experts attribute the unusual weather to climate change, while others point to poor management of dams.
 
  
by Nakinti Nofuru, Senior Reporter
Cameroon News Desk
October 4, 2012

BAMENDA, CAMEROON – Margaret Shu, 61, is a retired teacher who now works as a farmer in Bamenda, the capital of Cameroon's Northwest region. She says she is surprised about the heavy rains her town received at the end of September.

 
"In my 32 years in Bamenda, I have never seen such a rain," she says. "It rained so heavily in a short while. While it rained, it poured down hail stones in large quantities."
 
"In my 32 years in Bamenda, I have never seen such a rain."
Margaret Shu, farmer

The heavy rain caused flooding in her town.

 
"It was terrible," Shu says.


She says the hail destroyed all her crops.

 
"The crops that I planted this season were all shredded by the hail stones," Shu says. "The leaves of my newly planted corn, beans and cocoyam were all destroyed."

 
Shu says Bamenda's rainfall this year is a clear indication of climate change. She says it hurts farmers the most, as heavy rains cause unpredictable seasons that confuse farmers about when to plant. Both heavy rains and drought have ruined crops in recent years.
 

"I can now see the manifestations of climate change," she says.
 

Local residents in Bamenda are voicing concerns about the rare heavy rain and the floods that have reached them in recent weeks. Some experts attribute the uncharacteristic weather patterns to climate change. But others attribute increased flooding to poor management of dams, a project the federal government has prioritized for this year.

 

This year, severe flooding has affected four of Cameroon's 10 regions: the Far North, the North, the East and the Northwest regions, according to local media. The flooding has affected several villages, and thousands of people have lost their homes, property, animals and crops. Official data has not yet been publicized.

 
In the Northwest region, a flood struck the village of Babessi in the Ngoketunjia division in early September. The flood destroyed farmlands and the homes and property of 26 families, according to local media.

 
At the end of the month, it rained heavily and hailed in Bamenda. There was flash flooding, leaving vehicles and pedestrians unable to cross the bridge over the main road in the middle of the town, with no option than to wait on both sides for the water level to go down.


Of the vehicles that dared to cross the bridge, some lost their engines in the middle of the water. The rushing water also swept away one motorbike rider who tried to cross the bridge, with the iron bars along the bridge preventing him from falling off.

 
Businesses and homes endured several inches of water. Owners occupied themselves by draining the buildings and houses.

 
One onlooker, Augustine Tanteh, looked at the high waters and prayed that it would rain even more.
 

"I pray that the rain falls even heavier so that there will be flooding here in Bamenda also," he says. "Let it flood so that the president will come to Bamenda also and give some money and food."

 
President Paul Biya and his wife visited flood victims in the Far North and North regions Sept. 19 and 20 to share their grief and to offer financial and material assistance. Biya disbursed 1.5 billion francs ($3 million) to the victims, according to a government press release.
 

A U.N. mission also visited the flood sites, according to a U.N. press release. The release also announced the development of an emergency response fund, including food distribution, prevention of health problems, contribution of agricultural input, school rehabilitation and tents for resettlement camps.
 
But another Bamenda resident, Judith Bih, has a different view.

 
"I am praying to God almighty not to allow what is happening in other parts of the country to happen here," she says. "Flooding is not a good thing. It is a natural disaster that can destroy more than property. Lives may be lost. God help Bamenda."

 
As rare flooding continues to plague Cameroon, experts debate the cause.
 

Beatrice Ndoping is a lecturer at the University of Bamenda who has her doctorate in community development, cooperatives and mutualities. She says the heavy rains in Bamenda are a clear manifestation of climate change.
 

"In recent years, there has been a major transformation in the global economy in the means of production and in the rate of expansion of urban development," she says. "The population increase and the corresponding technological innovations has led to global deforestation." ­

 
She attributes deforestation to several causes.
 

"Mainly, the conversion of forests to agricultural land, losses through other natural causes each year, the irrational exploitation of forests for capital gains and other uses thus significantly affected tree growth and forest size," she says.

 
She says the decrease in forests has worsened the effects of pollution, exacerbating the depletion of the ozone.

 
Ndoping says Bamenda and the region are mostly grasslands. Moreover, people have cut down the region's little trees for fuel and developed the land. She says the lack of trees leads to higher levels of carbon dioxide, which thickens the greenhouse gases around the Earth, intensifying the global warming process.

 
"Lots and lots of trees must be planted in Bamenda, so as to fight the challenges posed climate change," Ndoping says. "In Bamenda, the planting of trees is on the road map of the administrative calendar."

 

Biya asked all government leaders at the end of 2011 to prepare "road maps" to outline 2012 plans. The governor of the Northwest region included planting trees on the region's road map.

 
But Isaac Njilah, an environmentalist with his doctorate in geology, disagrees with Ndoping.

 
"A lot of people attribute what is happening to climate change," he says. "It is not climate change."

 
Rather, he attributes the flooding to poorly functioning dams.

 
"All the four regions in Cameroon that have flooded have dams," he says. "The main cause of the flooding is poor management of the dams."

 
Njilah uses flooding in the Far North region as an example. Here, Cameroon shares a dam, and therefore reconstruction or maintenance responsibilities, with three other African countries, he says. One of those neighbors, Chad, has built a dike on its side, but Cameroon has not. This has caused the water to seep into Cameroon during periods of high water levels.

 
"The dams need reconstruction or maintenance to avoid such disasters," he says.

 
The president said in a public statement during his visit to the Far North and North regions to visit flood victims that the government would disburse funds before the end of this year for experts to start the reconstruction process of the dams in Cameroon.

Sunday, October 7, 2012

News on hydropower projects in Zimbabwe (Kariba) and Ivory Coast (Soubre)

Cabinet restores Kariba's US$700m power tender
October 5, 2012
Zimbabwe Independent
http://www.theindependent.co.zw/2012/10/05/cabinet-restores-karibas-us700m-power-tender/

Cabinet on Tuesday reversed a decision by the State Procurement Board
(SPB) to cancel the tender for Kariba South's US$700 million expansion
programme which had been awarded to Chinese firm Sino-Hydro.

Sino-Hydro was the sole bidder for the project, but had failed to win
the tender after disagreements with the SPB over a site visit
certificate and bid bond which is issued as part of a bidding process by
the surety to the project owner, to guarantee that the winning bidder
would honour the contract under the terms on which it bid.

Sources said the Chinese firm's bid was restored after stormy debates in
Cabinet on Tuesday.

Before cabinet overruled the SPB's decision to cancel the Sino-Hydro
tender, Energy and Power Development minister Elton Mangoma had
complained of the cancellation saying it was unfortunate that flimsy
reasons were being given as the basis for cancellation of such an
important national project.

Once fully operational, the Kariba South plant is expected to provide an
additional 300 megawatts to the national grid by 2016, and commission a
massive 800MW at the Batoka Gorge four years later if funding is secured.

Zimbabwe is only capable of generating about 1 200MW of the peak
national demand of about 2 2000MW, and government's decision to restore
the deal is part of its efforts to curb a crippling power shortage that
has stalked the country, particularly in the past five years.

The country's industrial capacity utilisation stands at an official 60%,
raising fears the power deficit would worsen should capacity utilisation
improve.

Zimbabwe Energy Regulatory Authority chairperson Canada Malunga last
month said the new energy policy acknowledged the role of renewable
energy sources and the power regulator was working on an Independent
Power Producers policy framework.

The regulator has licensed various large electricity generation
projects, investing in 11 new projects with a combined capacity of about
5,400MW valued at US$10 billion.

Zimbabwe's power shortage has resulted in numerous outages for domestic
and business consumers, affecting government projects aimed at helping
boost economic revival.

Zimbabwe plans to raise power output to 10,000 megawatts in line with
the National Energy Policy.

***

Zesa tender raises storm
Monday, 08 October 2012
Zimbabwe Herald
Herald Reporter

http://www.herald.co.zw/index.php?option=com_content&view=article&id=54347:zesa-tender-raises-storm&catid=37:top-stories&Itemid=130

The State Procurement Board has reversed its decision to cancel the
tender for the expansion of Kariba South power station after the sole
bidder SinoHydro Corporation Limited protested against it.

The SPB had cancelled the tender following a recommendation by the
Zimbabwe Power Company that the firm had failed to meet the tender
requirements.

SinoHydro, however, argued that it met all the tender requirements
adding the firm had long signed a Memorandum of Understanding with
Treasury for the project.

SinoHydro said in the first place the project was not supposed to be
open to tender because it signed the MoU with the Ministry of Finance in
2010 for the US$700 million project.

In a letter to SinoHydro last week, SPB principal officer Mr Cledwyn
Nyanhete said his board was reversing its decision to cancel the tender
without giving reasons.

"Your technical and funding proposals with respect to the above tender
(ZPC/KPS 0212: Kariba South Power Station Extension Project) is accepted
to proceed to the financial evaluation stage," said Mr Nyanhete.

On September 18, 2012, Mr Nyanhete had informed SinoHydro that its bid
had failed because the company failed to provide bid validity, spare
parts list and site visit certificate.

"Tender No. ZPC/KPS 02/2012 for Kariba South Power Station Extension
Project, be and is hereby cancelled due to the failure by the sole
bidder to meet tender requirements.

"SinoHydro Limited should collect their financial proposal envelope
unopened," said Mr Nyanhete.

However, SinoHydro Ltd on September 27 contended that the reasons for
the cancellation of the tender were weak. The company's representative,
Mr Wu Yifeng, said his company already had a deal with the Government
for the project.

"We would like to remind the State Procurement Board that SinoHydro
signed an MoU with the Ministry of Finance in 2010, which is still
officially in force and effective. However, this was subsequently
ignored by the Government of Zimbabwe when an international tender was
floated to which SinoHydro responded after deciding not to raise the
issue of the legality of calling a tender for a project already covered
by an MoU," Mr Wu said.

He said in their bid letter they stated that their tender would remain
valid for acceptance by the SPB at any time within the period of 180
days from the date fixed by the SPB. "SinoHydro completed their offer in
accordance with the RFP and in envelope three (financial offer) we
clearly state the bid validity is 180 days as required. In addition, our
bid bond is valid until December the 3rd, 2012 and thereafter for a
further 35 days for action by ZPC.

"Therefore we would question why the absence of a specific date has been
raised as a justification for disqualification," said Mr Wu.

On spare parts, they stated that in consideration of the limited shelf
period of some spare parts proposed for the project, the spare parts
would be provided in batches and lots according to the wearing
conditions of the plants and equipment to ensure the regular operation.

Mr Wu said in their offer, they clearly provided for a comprehensive
spare parts list to be provided at detailed design stages. "The
provision of a spare parts list in advance of the final design being
agreed by ZPC is counter to normal tender specifications and we believe,
would be prejudicial to the best interests of ZPC," he said. He said
SinoHydro also attended three obligatory site visits stipulated by ZPC.

Changes on the deadline of the tender, Mr Wu said, could have resulted
in his organisation enclosing the wrong certificate.

He said their attendance was verifiable with the ZPC and its advisors.
"For us now to be disqualified on the basis of the above reasons, none
of which have a material effect on the tender offer would be grossly unfair.

"Please be assured that we fully respect the tender regulations as laid
down by the Government and governed by the State Procurement Board, but
we strongly believe that there are mitigatory grounds for reconsidering
the decision of PBR1670," said Mr Wu. It is understood that when the MoU
was signed, SinoHydro Ltd would secure funding for the project from
Export-Import Bank of China.

Sources close to the developments said during adjudication, SinoHydro
took a delegation of officials from Treasury, ZPC and ZPC technical and
funding consultancy to Exim Bank.

"When the SPB opened the funding and the technical proposals, they said
it was valid and submitted it to the ZPC for evaluation.

"In early September, ZPC wrote a letter to the SPB saying they were
happy with the funding and technical proposals by SinoHydro but now all
of a sudden they have changed saying it failed to meet the tender
requirements.

"It is clear that there is a hidden hand behind this because people at
ZPC do not want to own up to the recommendation they made that the
tender was supposed to be cancelled," said a source. SPB chairman, Mr
Charles Kuwaza, a fortnight ago said his board was yet to consider the
complaints raised by SinoHydro Ltd.

It is, however, understood that the SPB is not allowed by the
Procurement Act to overturn its decisions. It is only the courts that
can adjudicate over appeals.

No comment could be obtained from ZPC managing director Mr Noah Gwariro.

***

Ivory Coast eyes $556 mln from China's Exim for new power station
Fri, Oct 5 2012
Reuters
By Loucoumane Coulibaly
http://www.reuters.com/article/2012/10/05/ivorycoast-china-power-idUSL6E8L5CAP20121005

ABIDJAN, Oct 5 (Reuters) - Construction will begin on a 275-megawatt
hydro power station in Ivory Coast by year-end supported by a $556
million low-interest loan from China's Export-Import Bank, a top energy
ministry official said.

Ivory Coast's government is pushing plans to increase the country's
production capacity by 150 MW per year over the next decade, part of
efforts to renew long-neglected infrastructure following years of
political turmoil.

"We'll have Chinese financing for 85 percent of the 330 billion CFA
francs ($654.26 million) through Exim Bank, and the Ivorian share will
be the remaining 15 percent," Sabati Cisse, energy director for the
ministry of mines and energy, told Reuters in an interview.

The two parties have agreed to a 2 percent interest rate and a nine-year
grace period for the 20-year loan, Cisse said.

"Everything is in place. The financing has been acquired. The last
signatures, those for the loan agreement, will be done in the first half
of November at the latest," he said.

Authorities first announced plans to build the Soubre hydro-electric
station late last year. Work on the project is expected to last 5 years.

Unlike many countries in sub-Saharan Africa, Ivory Coast has reliable
power supply and exports electricity to Ghana, Burkina Faso, Benin, Togo
and Mali.

It has plans to add Liberia, Guinea and Sierra Leone to its grid.

The country's six hydroelectric stations and three thermal stations have
a total production capacity of 1,390 MW.

But weather has made hydro-electric output unreliable and consumption is
rising, up 3.5 percent to reach 4,010 gigawatt hours in 2010.

Investment in the sector was hobbled during a 10-year political crisis
that divided the world's top cocoa grower into a rebel-held north and
government-controlled south. A brief war ended the impasse and reunited
the country last year.

The government has promised to spend $500 million to renew the sector
and is seeking additional financing.

Plans include construction of a 330--megawatt thermal power station near
the commercial capital, Abidjan.

($1 = 504.3880 CFA francs) (Writing by Joe Bavier; Editing by David
Lewis and Jason Neely)
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Friday, October 5, 2012

Two articles on dam-building plans in China

[Two articles below discuss new plans for dams in China. The first
examines plans for investing in solar and hydro in Tibet by Huaneng. The
second is extracted from an HSBC report on climate change risks in
China, and the implications of reduced water availability on hydro and
thermal plans.]

Company taps clean energy in Tibet
Xinhua News
October 4, 2012

http://www.china.org.cn/business/2012-10/04/content_26701836.htm

A national energy company is planning to invest 100 billion yuan (15.87
billion U.S. dollars) within 10 years to tap into abundant solar and
hydroelectric power resources in Tibet.

Huaneng Tibet Power Generation Co., Ltd. (HTPG), a subsidiary of the
state-owned China Huaneng Group, has signed multiple agreements with the
Tibetan autonomous regional government regarding development of clean
energy, company sources said.

"The investment is aimed at putting an end to the energy shortage in
Tibet and sending power out of the region as well," said Liu Xingguo,
general manager of HTPG.

Tibet has abundant solar and hydroelectric power resources, with the
amount of annual sunlight clocking in at 2,000 hours and hydropower
resources that are believed to account for 29 percent of the national total.

However, Tibet still suffers from power shortage due to underdeveloped
infrastructure, which has in turn hindered the region's economic and
social development.

In July 2010, Huaneng kicked off construction on the Zangmu Hydropower
Station, the largest hydropower project in the region.

The 8.5 billion-yuan project, with an installed capacity of 510,000
kilowatts, is expected to go operational in 2014 and reach its full
capacity in 2016 after its six power-generating units are put into use,
generating 2.5 billion kilowatts of electricity annually.

By 2015, Huaneng's installed capacity in Tibet will reach 800,000
kilowatts and rise further to 10 million kilowatts by 2020, according to
the agreements between the company and the regional government.

****

Does China have enough water to keep building three power stations a week?
By Wai-Shin Chan
Chinadialogue
October 5, 2012

http://www.chinadialogue.net/books/5198/en

Cities like Beijing and farming heartlands are at risk of water
shortages from China's surging demand for power, says HSBC.

China builds an average of three new power stations a week; by 2030 it
plans to add more power capacity than exists in the US, the UK and
Australia today. This will require huge amounts of water for cooling and
driving steam turbine generators. The country's water resources are
already stretched and climate change is making conditions even tougher.

So what does this mean for investors and companies?

We believe that water and power risks must be a top priority when
planning capital expenditure. It is vital that the availability of water
and the potential effect on supply chains is taken into account for the
life of the investment.

Forty percent of China's total agricultural output is produced in
water-scarce regions. We believe five provinces - Hebei, Shanxi,
Shandong, Henan and Jiangsu - and three municipalities, Beijing,
Shanghai and Tianjin, are most at risk of water shortages. The
industrial sector is doubly exposed because it consumes well over 80% of
all electricity.

Given the investment implications, it's important to look at how China
is attempting to deal with the twin challenges of generating sufficient
power to drive its giant economy and protecting its precious water supplies.

In 2010, thermal power represented 74% of China's total installed
capacity and hydropower 22%. This means that almost all power generation
relies on water. The nation's industrialisation, urbanisation and rising
affluence will increase demand for electric power and with that comes
the further depletion of limited water resources.

China's annual renewable-water resource per capita averaged slightly
over 2,000 cubic metres in 2003-2010, just above the water stress level
of 1,700 cubic metres. On closer examination, this water is not evenly
distributed throughout the country's 31 provinces and municipalities.
Eleven provinces are already water scarce (meaning they have less than
1,000 cubic metres per capita per year) and climate change, caused
mostly by carbon-dioxide emissions from burning fossil fuels,
exacerbates existing water stresses. The Chinese government recognises
this and has responded by setting tough new water quotas as well as
pollution reduction targets.

Coal and hydro expansion

We estimate China's power sector uses approximately 10% of the nation's
water, relatively low compared to the UK's 34% and 49% in the US.
However, China plans to add 1,212 gigawatts of water-reliant power
capacity by 2030, equivalent to almost six times India's current
installed generation capacity. Coal-fired power will continue to
dominate: in the decade to 2020, China plans to add 453 gigawatts of
coal-fired power capacity, equivalent to double Russia's entire 2009
power generation capacity.

China's coal-fired power capacity expansion will also involve an
increase in coal mining, which consumes an abundance of water for
extraction and processing. We estimate that 47% of coal reserves are
located in water-scarce regions. Water scarcity could also lead to a
greater reliance on coal imports; for example, 30% of China's ensured
coal reserves are in Shanxi, a province suffering from extreme water
scarcity.

Changes in water availability also threaten hydropower. Although
hydro-capacity is usually built in water-rich areas, the effects of
shortages can be felt more quickly in the event of drought. Some
hydropower stations have operated at below capacity in recent summers
due to droughts in southern China.

The government plans to expand hydropower from 216 gigawatts in 2010 to
568 gigawatts by 2030. Unfortunately, the damming of rivers upstream has
the potential to generate tensions with countries further downstream, so
hydropower in China comes with geopolitical risk.

We believe the expansion of China's installed thermal and hydro capacity
will further stress water resources. Even with a change in fuel mix, we
expect that 87% of power capacity will still require water. That means
efficiency needs to be greatly improved.

Capping water use

Energy efficiency is as important as water efficiency. Using less energy
would reduce demand for power, alleviating some of the water stress.
China has improved both water and energy efficiency in recent years,
although much more must be done to achieve national targets.

Stricter energy-efficiency targets have already been imposed on the
industrial sector after they missed 2011 targets. We think industrial
water targets could follow suit, though more efficient expansion may
also require more upfront capital expenditure.

Water scarcity puts the metals and mining, utilities production and
supply, and manufacturing segments at risk. No water means no
electricity, and no raw materials such as iron and steel. As mentioned
earlier, some 40% of agricultural output is produced in water-scarce
regions, mainly in the country's north. Climate change will also affect
agricultural productivity through increased temperatures and altered
water availability. Moreover, since agriculture is of prime importance
to China in terms of food security, competition for water could become
fiercer.

The central government set national water quotas in 2011. In response,
provincial administrations have set and released 2015 water caps. Since
the total of the 31 provincial caps actually exceeds the national total
for 2015, some inter-provincial planning or collaboration will have to
take place. We believe this further highlights the problem of
enforcement in China. Moreover, some of the most water-scarce provinces
have been given the toughest water pollution-reduction targets, making
it extra hard to balance growth with water quantity and quality.

Since 45% of China's GDP originates in water-scarce provinces, we think
provincial water caps could force a change in the economic mix.
Facilities may have to relocate, and water quotas and
pollution-reduction targets could be enforced more strictly than in the
past. In addition to the five provinces and three municipalities that
are most at risk of water shortages, three borderline stressed provinces
- Guangdong, Zhejiang and Inner Mongolia - are also vulnerable as they
fluctuate in and out of water stress.

China's planned economy is taking water and other resource stresses into
account, however, the growth profiles of power and water in certain
provinces seem to reveal a planning mismatch. Although water tariff
hikes are also a concern, we believe the greater risk lies with water
shortages. Improving both the water and energy efficiency of operations
is crucial.

Water and power risks need to be considered as a core feature of capital
expenditure plans. Project financiers should consider these resource
shortages before funding assets, ensuring that water availability has
been taken into account, and somewhat assured, for the life of the
asset. Investors should examine the effects of potential water shortages
on facilities located in water-scarce provinces and whether direct
operations or supply chains could be affected. Companies should be more
conscious of water quotas and pollution targets as they strive to make
operations more efficient, as water targets may be more strictly
enforced than in the past.

Finally, we believe that water constraints will provide an additional
driver for industrial energy efficiency, already a priority of the 12th
Five-Year Plan. Without upfront action now, we believe the risk remains
and future assets could be left stranded high and dry.

Wai-Shin Chan is climate change strategist at HSBC. This article is
drawn from HSBC's report "No water, no power: is there enough water to
fuel China's power expansion?"
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Kenya: Govt Steps Up Geothermal Power

http://allafrica.com/stories/201210041391.html

AlertNet
Kenya: Govt Steps Up Geothermal Power
3 October 2012


Kenya has inaugurated Africa's biggest geothermal power project in a bid
to meet its growing need for electricity and lower its consumption of
nonrenewable energy.

The 280 megawatt (MW) Olkaria Geothermal Project was commissioned by
Kenya's president, Mwai Kibaki, in July. It is being built at a cost of
82.5 billion Kenyan shillings ($980 million) and is due for completion in
June 2014.

Experts say that it should be an important source of "green" energy in a
country that has seen its hydropower production hit by worsening drought.

The project "will be an effective source for power for Kenya in the sense
that it will help the country manage its competitiveness in the region and
in global markets, especially for agro-based industries that for many
years have suffered from costly, inefficient and unreliable power," said
Chris Ackello Ogutu, an agricultural economist at the University of
Nairobi.

If farmers get access to cheaper and more reliable geothermal energy to
help process their crops, "then their vulnerability to climate
change-related stresses (will) diminish," he said.

Drilling of steam wells for the new facility has already taken place, and
these will generate power even before the permanent geothermal plant has
been put in place, officials say.

The new plant in particular will help Kenya reduce its heavy reliance on
hydroelectricity, which is an increasingly uncertain energy source as
rainfall becomes more erratic, a situation that experts believe is related
to climate change.

Two geothermal units, each with an output capacity of 140 MW of
electricity, will make up the new plant at the Olkaria Complex, some 80 km
(50 miles) northwest of Nairobi, Kenya's capital.

Two other geothermal plants constructed in the 1980s and 1990s are already
in operation at the complex, which was Africa's first geothermal project.
The new plant will be Africa's largest and will almost triple Olkaria's
capacity to 430 MW.

The project is being funded by the Government of Kenya, the Kenya
Electricity Generating Company (KenGen), the World Bank, European
Investment Bank, and the development agencies of France, Germany and
Japan.

The geothermal project is expected to boost current Kenya's power output
of 1,588 MW by 18 percent, according to Eddy Njoroge, managing director of
the Kenya Electricity Generating Company. The company is Kenya's leading
power generator, producing nearly 80 percent of the country's electricity.

80 PERCENT GREEN POWER

Njoroge adds that the project will increase the proportion of KenGen's
electricity derived from green sources to more than 80 percent. (The
remainder comes from nonrenewable sources such as diesel generators.)

Geothermal power will contribute more than one third of this green energy.

The new project is one of several aimed at increasing the capacity of the
national grid by as much as 140 percent over five years to help meet
growth in demand. By 2030, the government plans to raise power output to
15,000 MW, from a current 1,500 MW.

"We have plans that in five years' time we will be in a position to
contribute more than 50 percent of our total electricity capacity (from
geothermal power) so that the country can avoid expensive modes of
generation," Njoroge said.

Experts believe the Olkaria Complex could produce additional geothermal
power beyond that now being tapped.

According to field optimization studies conducted by Mannvit Consortium of
Iceland, the complex is capable of producing an additional 560 MW of
power. Current estimates place Kenya's total geothermal potential at 7,000
MW.

Nashon Adero, a policy analyst with the Kenya Institute for Public Policy
Research and Analysis (KIPPRA), said the project is one of many green
energy initiatives being promoted as part of the government's Least Cost
Power Development Plan, which looks ahead as far as 2031.

"Geothermal is seen as the preferred power generation for Kenya because
its operation costs are less than other modes of power generation, and in
the long run (it) can help the country achieve a reduction in unit cost of
power by 50 percent," he said.

Geothermal power is less expensive than hydropower, he said, and will also
significantly help reduce the country's greenhouse gas emissions from
fossil fuel power generation.

Emissions from geothermal power generation are just 10 percent of those
from oil-based power generation, Adero said.

He said Kenya's Great Rift Valley gives the country a competitive
advantages in that it offers suitable geological conditions for harvesting
heat from the earth's crust to generate electricity.

"Even though sources of renewable energy in such countries as Ghana and
the Democratic Republic of Congo are significant, these are mainly
hydropower based," he said.

But Kenya lags behind other African countries in terms of per capita power
availability, figures show. Kenya's power availability, for instance, is
less than half that of Ghana, according to the Kenya Economic Report of
2010, compiled by KIPRA.

And improving power generation alone will not improve the country's
economic prospects, Ogutu warned.

"Policy issues remain problematic and labour costs have tended to make
Kenyan products a lot more expensive than they ought to be," he said.

One of the challenges facing the project has been the relocation of people
to pave way for construction. About 270 homeowners are affected by the
plans, and they will be resettled on a 690-hectare (1,700 acres) parcel of
land on which 164 houses are being constructed. Churches, a school and
teachers' accommodation, a library, and a cattle dip and watering trough
will also be built by KenGen.

"We hope to have put the necessary infrastructure in place as well as
completed the resettlement of families by next year in February," said
Njoroge.

Geoffrey Kamadi is a freelance Kenyan journalist based in Nairobi. He has
written widely on science and health issues for local newspapers as well
as online publications.

Read more at AlertNet Climate, the Thomson Reuters Foundation's daily news
website on the human impacts of climate change.
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Wednesday, October 3, 2012

Ghana's best shot at going green: sewage power

http://www.csmonitor.com/Environment/2012/1003/Ghana-s-best-shot-at-going-green-sewage-power/%28page%29/2

Ghana's best shot at going green: sewage power

With solar and wind power costly and inadequate, Ghanaians are turning
to some very alternative sources of energy � like human waste.

By Drew Hinshaw, Correspondent / October 3, 2012

Accra, Ghana

How might the world's poorest continent go green? Kwabena Otu-
Danquah's job is to crack that riddle. The renewable energy czar for
Ghana ranks among the handful of bureaucrats across Africa tasked with
picking which forms of green energy might prove affordable on a
continent where most people don't pay for the electricity they
sometimes receive.


Last year the Ghanaian parliament signed a pledge to derive 10 percent
of the country's electricity from alternative sources come 2020. Mr.
Otu-Danquah is still trying to figure out which alternatives.

Sun? Forget it. Solar costs 40 cents to 50 cents a kilowatt hour,
while Ghanaians pay just 5 cents to 10 cents for electricity from
conventional sources. Wind? Too slow. Breeze ambles through this
tropical doldrum at a leisurely average of five kilometers an hour
(3.2 miles per hour). How about jatropha, a local flower Goldman Sachs
pitched as the next fad biofuel? Ghana tried that. As growers mowed
down farms to plant nuts for fuel, drought-battered countries to
Ghana's north complained of food price spikes in some of the world's
hungriest villages.

That's forced Ghana to consider a more imaginative set of choices.
Among them, sewage. Flush with a $1.5 million grant from the Bill and
Melinda Gates Foundation, local Waste Enterprisers Ltd. is building
Ghana's first "fecal sludge-fed biodiesel plant." That's longhand for
cooking human excrement into generator fuel, Chief Operating Officer
Tim Wade explains. The transformation would serve a dual purpose. Open
sewers sweep 1,000 tons of slurry each day into the ocean off Accra,
spewing an ocean-top brown slick that is visible on Google Earth.
Outside the upland city of Kumasi, roughly 100 trucks dump tens of
thousands of liters of septic tank sewage daily into what used to be a
small pond.

Luckily, nobody bothers to treat that slop. Sewage treatment plants,
as far as Mr. Wade is concerned, frivol away the good stuff. If all
goes according to plan, next month one truck a day from Kumasi will
dump its payload into a warm and massive vat that will skim lipids �
fat � off the top. �That's your biodeisel,� he explains.

At $7 a gallon, he can sell the muck to local mining companies, who
are keen to buy because they too have been required by parliament to
power 10 percent of their private electric plants from green sources.
Normal diesel does sells a few bucks cheaper, he admits, �But we're
still optimizing the process.� If he can get costs down, Mr. Wade
intends to build four plants in Accra and lecture sub-divisions back
home in Colorado on the folly of treating their waste.

Alternatives to the alternatives

There are more sanitary ways to make a megawatt in this country. Kwame
Tufor came home from Florida to liquefy Ghana's coconut husks, cocoa
pods, and palm nut shells into gas. But you'd need a lot of coconuts
to turn a profit that way. So he and a business partner are eyeing an
old paper farm the size of Brooklyn. Sometime between one 1970s coup
and another, the owner ran out of money and political favor,
abandoning acres of trees that were meant to be mulched into notepads
35 years ago.

Mr. Tufor intends to saw those trees down, replant them, then burn
the timber and compress the smoke into a biofuel using dated World War
II technology that's been dusted off by developing world power plants.
At least 10 plants in China now gasify coal this way. Farmers in the
Philippines run irrigation pumps on generators that gasify rice husks.
If Mr. Tufor's $200 million project pans out, local farmers would also
sell him their nut shells and cocoa pods for his incinerator.

Odder sources of energy are under review. They include leftovers.
Ghana's trash, it seems, boasts curiously high food content � edibles
account for 60 percent of this country's rubbish, according to Senior
Researcher Robert Adu at England's De Montfort University, Leicester.
He's finishing a technical proposal on how to goose a charge out of
Ghana's garbage. One thing Ghana's got going for it: Locals love rice.
One kilogram of the staple grain, Mr. Adu says, packs 17 kilojoules, a
flicker compared to a kilo of kerosene, but great compared to a
vegetable.

Subsidizing trash

Ghana's government offers a subsidy for companies that can produce
renewable energy at a cost closer to the African pay scale. For Mr.
Adu, that means it might just be profitable to feed tons of rotten
groceries everyday into a fire that would boil a tank of water whose
steam would lurch a turbine forward. The trouble? How to cull the grub
from the garbage. Trash separation schemes do exist; Mr. Adu says he's
reading a book on them. He points to a plant in Germany that's
mastered the technique through a process made profitable by sales of
hot air, a byproduct, to heat homes in wintertime. If Mr. Adu goes
that route, he'll have to find buyers looking to purchase hot air in
the tropics.

Mr. Otu-Danquah isn't quite sure will this burst of invention will
wind up: At the day's end, economics on what Ghanaians and their
government can afford will surely dash some dreams. But the proposals
make for more interesting reading, he says, than the stack of
hackneyed solar plant schemes he's stuffed into a corner. Plus, some
big break just might occur.

�When the time comes,� he says. �we will have learned our lessons and
developed our own technology.� At the very least, he adds, Accra might
enjoy cleaner streets, cleaner sewers.
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Tuesday, October 2, 2012

China's dams a threat to the Mekong

China's dams a threat to the Mekong

China's most recent hydropower project on the Mekong River, the
Nuozhadu, threatens the ecosystem of the river, experts warn.
Oct. 1, 2012
United Press International

http://www.upi.com/Business_News/Energy-Resources/2012/10/01/Chinas-dams-a-threat-to-the-Mekong/UPI-43291349114632/


BEIJING, Oct. 1 (UPI) -- China's most recent hydropower project on the
Mekong River, the Nuozhadu Dam, threatens the ecosystem of the river,
experts warn.

Nuozhadu is the fifth Chinese dam to be commissioned in Yunnan province.

Studies by the Stimson Center, a Washington think tank, say the four
completed Chinese dams "are already altering the river's hydrology and
impeding the flow of nutrient-rich silt that sustains soil productivity,
nurtures fisheries and keeps the sea at bay in the Mekong Delta."

The longest river in Southeast Asia, the Mekong stretches 3,000 miles to
the South China Sea and is home to more than 700 species of freshwater
fish, including the endangered Mekong catfish.

"China's Mekong dams are so remote they receive little coverage in the
Western media," Milton Osborne, a Southeast Asian expert at Lowy
Institute, an international policy think tank, wrote in a blog.

Yet the dams, Osborne said, "will eventually alter the productive
capabilities of mainland Southeast Asia's longest and most important
river, a river vital to the sustenance of the 60 million people of the
Lower Mekong Basin."

The Chinese government claims that 13.5 percent of the water in the
Mekong as a whole flows through China. But Osborne says up to 40 percent
of the river's volume overall sustains the dry season flow for
downstream countries.

Speaking at the Asia-Pacific Economic Cooperation summit in Russia last
month, Vietnamese President Truong Tan Sang warned of increasing
tensions over water.

While not directly pointing the finger at China, Sang said dam projects
in particular were a growing concern, affecting relations between
bordering countries.

"Dam construction and stream adjustments by some countries in upstream
rivers constitute a growing concern for many countries and implicitly
impinge on relations between relevant countries," Radio Free Asia quotes
him as saying.

The first of Nuozhadu's planned nine generators went online last month.
China Huaneng Group, the main investor in the project, said the total
investment could reach $9.6 billion before the project is complete,
Chinese state-run news agency Xinhua reports.

When fully operational, Nuozhadu will produce an estimated 24,000
gigawatts of electricity per year. China Huaneng says energy generated
by the plant will save more than nine million tons of coal annually.

While Nuozhadu is considered a power transmission project from West
China to East China, China Huaneng says it will also supply power to
neighboring countries Laos, Vietnam and Myanmar.

Before the project is complete, about 43,000 people must be relocated.
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