Renewable energy development in Sri Lanka

Transcription

1 Renewable energy development in Sri Lanka With special reference to small hydropower C.K.M. Deheragoda The demand for electricity in Sri Lanka grows at an average rate of 8-9 per cent and could be met only by adding adequate generation capacities and employing the most appropriate technologies most economically. The government envisages a gradual increase of nonconventional renewable energy to provide the right mix in electricity generation. At present, hydro resources is the most exploited renewable in power generation, both in the form of large and small schemes. The large schemes have realized their entire potential, but small hydro power (SHP) continues to grow. Several factors have played their part in the success of SHP schemes, as this paper explains. Mr. C.K.M. Deheragoda Chairman Sri Lanka Sustainable Energy Authority 3G-17 BMICH, Bauddhaloka Mawatha, Colombo 07, Sri Lanka Tel: +94 (11) Fax: +94 (11) [email protected] Website: Introduction Sri Lanka is an island nation with a total population of 19.5 million distributed over a land area of 65,610 km 2 (Dept. of Census and Statistics, 2001). Of this population, 82 per cent receives electricity from the national grid serviced by the Ceylon Electricity Board (CEB). Another 2 per cent receives electricity from off-grid systems (SLSEA, 2009). The energy needs of the country are fulfilled either by primary energy sources such as biomass and petroleum or by secondary energy sources such as electricity produced using biomass, petroleum and hydropower. At present, petroleum accounts for per cent of the total energy supply, followed by biomass (47.39 per cent), hydropower (9.51 per cent) and nonconventional renewable energy sources (0.04 per cent) (SLSEA, 2008). A portion of this primary energy is converted to the secondary energy form, electricity (SLSEA, 2008). In Sri Lanka, energy is consumed in three forms electricity, petroleum products and biomass (fuel wood). However, only electricity and petroleum products are considered the major commercial TECH MONITOR Nov-Dec

2 Table 1: Generation mix proposed by the National Energy Policies and Strategies (2008) Year Conventional Maximum from Coal (%) Minimum from nonhydrolytic (%) oil (%) conventional renewable energy (%) (Source: MP&E, 2008) forms of energy (Siyamabalapitiya, 2005). The total electrical energy generated during the year 2007 was 9,901 GWh of which per cent came from oil burning thermal power plants while per cent was from hydropower (SLSEA, 2008). The highest demand for energy is from households and the commercial sector (49 per cent) followed by industries (26 per cent) and transport (25 per cent) (SLSEA, 2008). Electricity generation in Sri Lanka can be broadly divided into two parts based on whether they are connected to the national grid or run as standalone units. The national grid dominates the electrical energy supply in Sri Lanka, wherein, the country has a main grid that covers almost all parts of the country. Stand-alone power generation facilities have been made available in some locations that are not penetrated by the national grid. Additionally, standby power supplies are also available in most industries and commercial facilities, although their generation is very minimal due to the short-term nature of operation (ECF, 2004). The demand for electricity is growing at an average rate of around 8-9 per cent annually. Electricity consumers in Sri Lanka are categorized into groups based on the usage type domestic, religious institutions, industrial, commercial and street lighting. The highest demand for electricity among these groups is in the industrial (37.7 per cent) and domestic (39.2 per cent) sectors, followed by the commercial sector (20.9 per cent). Street lighting (1.6 per cent) and religious institutions (0.6 per cent) come next (SLSEA, 2008). Renewable energy potential The National Energy Policy and Strategies (2008), developed by the Ministry of Power and Energy (MP&E), places a strong emphasis on energy security, from both national strategic and an individual s perspectives. The policy envisions a situation where reliable, affordable and clean energy is made available to all the citizens at all times. This requires an energy resource base, or resources, available aplenty at all times (MP&E, 2008). The growing electricity demand can be met only by adding adequate generation capacities, employing the most appropriate technologies in the most economical manner (Kariyawasam, 2005). The present energy resources in Sri Lanka, however, fail to meet these criteria and hence, the requirement for several resources or an energy mix arises (SLSEA, 2009). The national government therefore envisages the gradual increase of resources to provide the right mix to generate electric power (Table 1). The government envisages reaching a 100 per cent target in electrification by Herein, the government is to increase the stake of the off-grid renewable energy by per cent by 2015, and 4 per cent of this is to be derived from the small hydropower industry (MP&E, 2008). The government has also recognized the need to elevate biomass as both a commercial crop as well as the third option for electricity generation. Accordingly, it has declared Gliricedia sepium as the fourth plantation crop after tea, rubber and coconut in Biofuels, as a key constituent of the transport energy, will be developed to claim a 20 per cent share by 2020 (SLSEA, 2008). The acceleration of renewable energy development needs to be a key strategy in a broad-based energy mix to provide high-quality and affordable energy to its citizens, while contributing heavily to minimize environmental impact and lowering greenhouse gas (GHG) emissions. The vast untapped potential of renewable energy and the diversity of the array of possibilities allow Sri Lanka to benefit and to veer away from an economic calamity, like the one stimulated by the oil crisis (SLSEA, 2007). Sri Lanka is endowed with many forms of renewable energy sources due to her natural geo-climatic settings. Biomass, solar, hydro and wind have been identified as the potential sources in this regard. These have the development potential, as and when the technologies become mature and cost-effective for deployment on commercial scale (Fernando, 2005). Biomass The bulk of the firewood and other biomass resources are used for cooking in rural households, irrespective of their access to grid-electricity. Even though the majority of energy needs of the rural population are fulfilled by firewood, its application in electricity generation is not yet widespread. But, the utilization of biomass for electricity generation is gaining momentum in Sri Lanka (ECF, 2004). Hydro Most of the major hydro potential has been developed and they are delivering valuable low cost electricity to the country. Since the commissioning of the first hydroelectric power plant in 1950, hydroelectricity generation has played a major role in power generation in Sri Lanka. The largest share of electricity generation came from major hydropower projects until the mid-1990s (Siyamabalapitiya, 2005). The Sri Lankan power sector was dominated by hydropower until 1996, and almost 94 per cent of the annual power demand in 1995 was met via 50 TECH MONITOR Nov-Dec 2009

3 hydropower generation (Wickramasinghe, 2009). Despite several hydropower capacity additions though, the share of hydropower showed a reducing trend since the mid-90s due to the non-availability of new sites that are economically feasible for hydropower development (ECF, 2004). Currently, hydro power stations are operated to meet both peak and base electricity generation requirements. Solar Sri Lanka receives an ample amount of solar radiation, since it is located in the equatorial belt. A substantial potential exists in the dry zone of the country for harnessing this energy, and the quantities are often adequate for many applications solar water heating, solar electricity, desalination, etc. (Renné and others, 2003). More than 110,000 solar lighting systems are successfully installed at present in Sri Lanka and the people are beginning to experience the benefits. These systems together produce about 5 MW of electric power, without any environmentally unfriendly electric cables. Wind According to the Wind Resource Atlas of Sri Lanka (Elliot and others, 2003), there are close to 500 km 2 of windy areas with good-to-excellent wind resource potential in Sri Lanka. However, only a portion of this is deemed feasible to be harnessed because of technical and system limitations. Pros and cons of renewable energy development Renewable energy resources are a popular choice in clean energy applications around the world. Based on this understanding, the Government of Sri Lanka would promote economically viable, environment-friendly, resources (Wickramasinghe, 2009). Renewable energy provides sound economic opportunities, especially for local enterprises, owing to the nature of all renewable energy resources the occurrence within the boundary of a country and the thin dispersion of the resource. Unlike petroleum and 1 About 60 per cent of the known oil resources are controlled by the Middle East countries, mainly Saudi Arabia, Iran, Iraq, Kuwait and the United aqrab Emirates. other fossil fuel resources, which are confined within the boundaries of very few countries, renewable energy is available almost in all countries, and is considered a very democratic resource. 1 The wide dispersion of renewable energy resources imply that, unlike a highly concentrated form of energy, the harnessing will be mostly confined to the area of occurrence of the resource, resulting in more local involvement and creation of room for local investments (SLSEA, 2007). On the other hand, it is this thin dispersion of renewable energy, often requiring unfamiliar and expensive equipment for conversion, that fails to appeal to financial analysts. The high initial costs and the apparent fianancial unattractiveness have prevented many renewable energy initiatives from taking off. Nevertheless, almost all renewable energy resources have made strong contributions to national economic development, particularly in countries without oil resources (SLSEA, 2007). Unlike non-renewable energy conversion plants, which have a relatively lower initial investment and a substantial operational cost, renewable energy conversion plants have negligible operational costs. This offsets the high capital cost and contributes significantly to maintaining low longterm energy costs. Further, renewable energy production facilities are not subject to fuel-price volatility. Hence, renewable energy should be considered to be the ultimate strategy for stabilizing energy prices in the long term (SLSEA, 2007). However, certain characteristics make harnessing renewable energy difficult if the place of occurrence of the resource is different from the place of consumption of the converted energy, requiring energy transmission. Further, renewable energy is considered as a non-firm energy, as most forms of renewable energy tend to vary in magnitude with time. For example, in Sri Lanka, the hydro resources display seasonal variation, while wind energy follows a seasonal variation and an hourly variation. These characteristics limit the full exploitation of the resources. Another complexity is the difficulty of storing energy. Other than biomass energy, none of the available renewable energy sources can be economically stored to be released on demand (SLSEA, 2007). Although renewable energy has contributed heavily to the national development in Sri Lanka, mainly in the form of major hydro schemes, the present focus is on non-conventional renewable energy sources excluding hydropower. This is the direct result of the exhaustion of all major hydro resources. While the exploitable major hydropower remains static, the level of electrification continues to increase coupled with the growing demand on electricity for industrial and commercial development (SLSEA, 2007). Small hydropower The development of the small hydropower (SHP) sector in Sri Lanka is widely considered to be a success story (Kariyawasam, 2005). The small hydro industry is typically characterized by projects with capacities less than 10 MW. The economically feasible small hydro potential in Sri Lanka is estimated to be 400 MW (Nanayakkara, 2005). The year 2008 has seen a growth in the non-conventional renewable energy additions surpassing 150 MW. Most of these capacity additions are attributed to the growth in the SHP sector. Figure 1 depicts the exponential growth in installed capacity of non-conventional renewable energy resources ( ), where the capacity addition excceeded 150 MW in 2008 (Wickramasinghe, 2009). The geo-climatic settings of Sri Lanka are particularly conducive to harnessing hydro resources: a highland mass in the south-centre, surrounded by an intermediate zone of upland ridges and valleys lying at lower elevation. The climate of Sri Lanka is largely determined by the meteorological conditions caused in the Indian sub-continent due to the tropical circulation. The formation of two contrasting wind regimes, the TECH MONITOR Nov-Dec

4 Figure 1: Exponential growth in installed capacity of non-conventional renewable energy resources ( ) Combined capacity (MW) Years Source: Wickramasinghe, 2009 Asian monsoons, is a major phenomenon caused by these conditions. The South-West monsoon prevails from May to October and the North- East monsoon occurs from December to February. These are responsible for the distinct seasonal rains in Sri Lanka (Fernando, 2005). Given the humid conditions and the hilly terrain, the highlands of Sri Lanka offer excellent opportunities to harness hydropower for the generation of electricity (Fernando, 2005). History of SHP The history of harnessing hydropower in Sri Lanka goes back to the British colonial era, during which this power was used as the main motive power in the tea industry. Tea, even now one of Sri Lanka s largest export industries, was started in 1897 by British planters. Almost from the beginning of the tea industry, small hydro was the main source of power for the tea factories, and many factories were deliberately sited close to streams and rivers to take advantage of the energy potential. Initially, factories and power houses were placed together, as power had to be transmitted to the machinery by line shafts and belts. Later, direct current (and still later, alternating current) generators became more readily available, and power houses could be located at some distance downhill from the factory so as to maximize the potential for useful power generation (Hislop, 1985). As the industry grew, so did the need for small hydro, to its peak of popularity (Hislop, 1985). According to available records, nearly 90 per cent of the small hydro turbines used in the plantation sector were supplied by Gilbert Gilkes and Co. Ltd., which was one of the oldest manufacturer of hydraulic turbines and pumps in England. The first turbine a vortex type, 15 hp turbine was delivered to the country in Since then, there has been a steady supply of hydropower plants to Sri Lanka with sales peaking around in During , Gilbert Gilkes and Co. supplied 367 SHP plants aggregating to 9.82 MW in capacity (Fernando, 1999). Temporary fall After World War II, the relative advantage of SHP rapidly eroded due to the installation of large-scale storage-type hydro schemes, which began to supply the first stages of a national grid. In early years, power supplies were in surplus, and even exports to India were considered. Further, many of the hydro and diesel systems were near their end of life at this time, needing extensive repair or total replacement. These considerations, together with the prospect of low-cost and reliable electricity supplies, acted as strong incentives for the tea industry to switch over to the grid. By 1975, when the tea estates were nationalized, less than one-third of them had retained their SHP systems in operational stage. The decline continued after nationalization and by 1984, only 5 per cent SHPs were operating (Hislop, 1985). The change from small hydro to grid electricity was justified on financial grounds up to the late 1970s due to the reliability of grid electricity and the favourable tariff structure. But then on, the picture began to change. By 1981, charges had increased from SL Rs 0.5 per unit, which prevailed in the late 1970s, to SL Rs 1.5, with a 150 per cent increase in the peak of kva charge. 2 Shortage in generating capacity led the Ceylon Electricity Board (CEB) to use gas turbines to meet the peak demand from 1980 onwards. Grid electricity s increasing costs began to reduce its relative financial advantage for the tea estates, cumulatively resulting in fall in the quality of tea (Hislop, 1985). New lease of life Renewed interest in SHP development emerged in the early 1980s, as by that time the adverse consequences to the tea industry increasing costs and unreliable power supply were slowly being recognised (Hislop, 1985). This renewed interest could further be attributed to the worldwide surge of harnessing renewable energy, as a response to the oil crisis in 1974 (Lekamlage, 2007). Accordingly, several estate SHP schemes were rehabilitated with the technical and financial support from the Integrated Rural Development Project (IRDP) funded by the Government of the Netherlands. Practical Action (former Intermediate Technology Development Group), jointly with CEB, made a significant contribution to the revival of SHP development in Sri Lanka through technology development and strengthening of technical capabilities of Sri Lankan engineers and technicians (Lekamlage, 2007). Success factors At the inception, the SHP industry was not all that different from the major hydro power projects implemented in Sri Lanka, because of the turnkey contracts and consultancy inputs from 2 Exchange rate US$1 = SL Rs TECH MONITOR Nov-Dec 2009

5 foreign experts. However, later still, local engineers together with the local business community who became investors in the industry made bold decisions with high risks to promote local engineering know-how and lowcost engineering methods. These changes dramatically decreased the investment costs, converting more sites into commercially viable projects. Furthermore, the efforts of the local engineers to bring down the investment cost per unit capacity to as low as US$1 million per MW by 2003, in spite of inflation and high labour cost, have resulted in a notable increase in investment in the SHP sector. Risk analyses, risk mitigatory measures, low-cost developments, selective procurement, etc. form some of these measures adopted by engineers in achieving this result (Nanayakkara, 2005). In 1990, the first attempt of using small hydropower plants to export energy to the national grid was experimented. Success was achieved in 1996, with the commissioning of the first grid-connected power plant (namely, Dickoya). This set stage for the development of a Standardized Power Purchase Agreement (SPPA), which turned a new leaf by streamlining the process of selling power to CEB, the operator of the national grid (Wickramasinghe, 2007). SPPA is considered the focal point in the successful development of the SHP sector in Sri Lanka. It is applicable for power plants with capacities less than 10 MW based on renewable sources, waste or co-generation facilities. The power plant could be either connected to the grid and deliver electricity fully to the grid or connected and deliver electricity to the grid while a part of the electricity generated is used by the developer (Kariyawsam, 2005). Grid-connected projects are commercial initiatives carried out by the private developers (Lekamlage, 2007). The salient features of the SPPA are as follows (Wickramasinghe, 2007): A complete avoidance of market risk: CEB assures the purchase of all what is produced by an SHP project; A floor price that is 90 per cent of the tariff, ensuring a steady and predictable cash-flow; and A long term commitment, with the SPPA lasting 15 years and being based on sound legal provisions. SPPA was well received owing to its relative simplicity in nature. It was also acceptable to banks and had low transition costs (Wickramasinghe, 2007). Electricity generation through grid connected and off-grid hydro plants was further popularized under the Energy Service Delivery (ESD) project assisted by World Bank and Global Environment Facility and implemented by the Government of Sri Lanka from 1997 to On the success of the ESD project, a follow-on project called Renewable Energy for Rural Economic Development (RERED) was formulated in 2003 and successfully concluded in RERED project extends term loans through participating credit institutions to commercially viable renewable energy projects (Lekamlage, 2007). Constraints and predicaments Almost all hydro installations were, and still are, run-of-the-river schemes without storage facilities. The main disadvantage of the run-of-the-river schemes is that they are much more vulnerable to seasonal fluctuations in water flow (Hislop, 1985). Hitherto, the absence of a clear policy created many predicaments in the SHP sector, including the nonavailability of finances to undertake grid augmentation necessary to take up more power. This also led to conflicting interests between developers and resource custodians, proliferation of a secondary market for renewable energy resource ownership, and an entangled and compounded bureaucracy in the project approval process (Wickramasinghe, 2007). The tariff based on the avoided cost principle, introduced by the CEB, proved less sustainable in the long run. It was a result of wrong generation mix, and was created with the costly mistake of having a floor price but no ceiling price. In addition, the resource development process was largely unregulated and was based on a first-come-firstserved principle. Although this paved the way for the developer to have a free hand to chose the best site for development, the same encouraged the emergence of pseudo developers. These pseudo developers froze many sites and paved the way for vested interests to develop among resource custodians and thus created a lucrative secondary market for preallocated resources, delaying the project approval process uncontrollably (Wickramasinghe, 2007). According to Kariyawasam (2005), although the SHP experience in Sri Lanka has generated a conducive investment environment with the legal framework and financing mechanisms in place, the over-enthusiasm of private developers could create harm by prompting them to connect more and more small generators to the grid in an unregulated manner. A number of technical issues are likely to arise if this happens. Measures taken to address constraints The Government of Sri Lanka has formulated the National Energy Policies and Strategies (2008) to create an environment conducive to develop inclusive of SHP (MP&E, 2008). This policy initiative has been designed to ensure the best economic value to the country. In line with the broad policy of reaching a 10 per cent share of renewable energy generation by 2016, the government has proposed a threetier, technology-specific, cost-based tariff to non-conventional renewable energy developers, thereby eliminating the drawbacks of the previous tariff based on the avoided cost principle. The new three-tier tariff consists of a fixed rate, operating and maintenance rate and fuel rate (if applicable). To work, the new tariff regime needs a tripartite agreement among the power producer, purchaser and operator of the Sri Lanka Sustainable Energy Fund (SLSEF). Created by the Sri Lanka Energy Authority Act No. 35 of 2007, SLSEF is an instrument that provides incentives to power producers (Wickramasinghe, 2007). The new tariff is offered to six genres of technology: biomass, wind, hydro, municipal waste, agro waste TECH MONITOR Nov-Dec

6 30 Figure 2: A comparison of cost of technologies All-inclusive tariff (SL Rs/lWh) Mini hydro Biomass Coal Wind Diesel HFO LNG Years of commercial operation Source: Wickramasinghe, 2007 and waste heat recovery. The front loaded tariff is expected to take off a substantial burden from the new entrants to the sector, as the cash-flows would be positive even during the initial period of heavy commitment on bank loan servicing (Wickramasinghe, 2007). Figure 2 compares the cost of technologies under the cost-based tariff structure. At present, a transparent resource allocation mechanism has been devised to ensure a level playing field for all SHP stakeholders. This mechanism will include renewable energy resource maps, inventories, energy development areas, resource development guidelines, pre- and postmonitoring and approval cycles, thus minimizing room for any exception (Wickramasinghe, 2009). A geographical information system database has been developed to strengthen the approval mechanism by enabling a systematic storage of existing and proposed SHP plants. The database also permits the integration of factors such as the elevation data, rivers and tributaries network, rainfall, electricity grid, and wildlife and forest reservations, which enable suitability analysis by the application of multi-criteria overlay techniques (Deheragoda, 2009). The approval mechanism has been further fortified with a land acquisition process and a robust legal framework including a process of appeal. The mobilization of financial resources by way of credit enhancement and improved tariffs too provides a growthfriendly investment environment for the small hydro sector (Wickramasinghe, 2009). Conclusion The Government of Sri Lanka places special emphasis on energy security, envisioning a situation where reliable, affordable and clean energy is made available to all the citizens at all times. The growing electricity demand could be met only by adding adequate generation capacities, employing the most appropriate technologies in the most economical manner. The government is envisaging the gradual increase of non-conventional renewable energy resources to provide the right mix to generate electricity. Over the years, the developers and consultants have become very much knowledgeable and experienced on the successes and failures of SHP projects in Sri Lanka. The Sri Lankan experience clearly shows that SHP is a technically viable means of power generation to supplement the national grid. However, from the utility s perspective, the quality of power can be ensured only by properly addressing the technical issues as well. Investor confidence for project financing developed greatly since the local SHP sector was spearheaded by a few local engineering teams with vast experience on designing, selecting sites, selecting electromechanical equipment and completing designs from water to weir. The biggest risk elements in the SHP sector are the social issues and easy land issues. The policy document National Energy Policies and Strategies (2008) of the government creates an environment conducive to develop non-conventional renewable energy inclusive of SHP. The initial tariff, which was based on the avoided cost principle, proved to be less sustainable in the long run. The government therefore introduced a new three-tier, technology-specific, cost-based tariff to non-conventional renewable energy developers, which expedited the development of several technologies. The resource allocation 54 TECH MONITOR Nov-Dec 2009

7 process, which is streamlined and transparent, ensures a level playing field for all SHP stakeholders. References 1. Deheragoda, C.K.M. (2009). Potential of GIS for the promotion of renewable energy power generation in Sri Lanka with special reference to mini-hydro projects: Presented at Map Asia 2009, August 2009, Singapore. 2. Department of Census and Statistics (2001). Sri Lanka Census of Housing and Population 2001: Population and Housing Data of the City of Colombo, Sri Lanka. 3. Elliott, D., Schwartz, M., Scott, G., Haymes, S., Heimiller, D., George, R. (2003). Wind Energy Resource Atlas of Sri Lanka and Maldives. National Renewable Energy Laboratory, United States of America. 4. ECF, Energy Conservation Fund (2004). Sri Lanka Energy Balance Colombo, Sri Lanka. 5. Fernando, S. (1999) An Assessment of the Small Hydro Potential in Sri Lanka. Intermediate Technology Development Group, Nottingham, England, United Kingdom. 6. Fernando, W.J.L.S. (2005). Sri Lanka energy sector development. In Proceedings of the 2005 Workshop pp Hislop, D. (1985). Case Study 2: Upgrading Micro Hydro in Sri Lanka. Intermediate Technology Development Group, Nottingham, England, United Kingdom. 8. Kariyawasam, P.L.G. (2005). Sri Lanka energy sector development. In Proceedings of the 2005 Workshop pp Lekamlage, A. (2007). Evolution of small hydro power sector in Sri Lanka: off-grid and grid-connected project experience. In Proceedings of the Regional Seminar on Small Hydropower Development in Sri Lanka: Lessons for Developing Countries, Sri Lanka. 10.MP&E, Ministry of Power and Energy (2008). National Energy Policy and Strategies of Sri Lanka. Government of Sri Lanka. 11. Nanayakkara, N. (2005). Sri Lanka energy sector development. In Proceedings of the 2005 Workshop pp Renné, D., George, R., Marion, B., Heimiller, D. (2003). Solar Resource Assessment for Sri Lanka and Maldives. National Renewable Energy Laboratory, United States of America. 13.Siyambalapitiya, T. (2005) Sri Lanka energy sector development. In Proceedings of the 2005 Workshop pp SLSEA, Sri Lanka Sustainable Energy Authority (2005). Corporate Plan. 15.SLSEA, Sri Lanka Sustainable Energy Authority (2008). Sri Lanka Energy Balance SLSEA, Sri Lanka Sustainable Energy Authority (2009). National Energy Security Drive Unpublished. 17. Wickramasinghe, H. (2007). Policy framework and initiatives for the promotion of small hydropower. In Proceedings of the Regional Seminar on Small Hydropower Development in Sri Lanka: Lessons for Developing Countries, Sri Lanka. 18.Wickramasinghe, H. (2009). Sri Lankan energy policies and renewable energy development. Paper presented at the Sri Lanka Wind Power Workshop, August 2009, Colombo, Sri Lanka. Asia-Pacific Renewable Energy Trust EPURON Pte. Ltd. Singapore, a regional subsidiary of the Conergy Group in Asia-Pacific, and GE Energy Financial Services have launched Asia-Pacific's first renewable energy private trust to spur their growth and investments in wind, solar, small hydroelectric, biogas and biomass power generation throughout the region. The Renewable Energy Trust Asia (RETA) is an investment vehicle focused on the US$7 billion annual renewable energy markets of India, the ASEAN countries and the Republic of Korea. It plans to build a portfolio of some 200 MW through potential investments totalling US$250 million within the next five years. With an 80 per cent stake, GE Energy Financial Services will serve as RETA s anchor investor. Besides maintaining its core expertise in greenfield development, EPURON will hold a 20 per cent stake in RETA and act as its Trustee Manager. EPURON will be responsible for project development, debt financing, acquisition of hardware and supervision of the construction of renewable energy projects. It will also manage completed projects. RETA will acquire and operate renewable energy projects from both EPURON and third parties and expects to make its first investment within a year. GE Energy Financial Services will share expenses. For more information, contact: Ms. Lyn Toh Corporate Communications Manager Conergy Asia-Pacific 138 Cecil Street, #01-01 Cecil Court, Singapore Tel: ; Mobile: ; Fax: [email protected] TECH MONITOR Nov-Dec