POWER July 2011 - 15

Marine energy will also have to reduce costs enough to compete
with other low-carbon technologies, and this will " ultimately
depend on the degree of targeted R&D that takes place and the
degree to which it can drive accelerated cost reduction, " says the
group. Other barriers include getting public approval for the potential
environmental impact and sufficient development of the
manufacturing supply chain. Today, the " most substantial barrier
is the development of the electrical grid to accommodate the deployment
of marine resources, " it says. Much of the deployment is
expected to take place in remote locations such as the west coast
of Scotland, where grid infrastructure is at present limited.
The sector can, however, expect to draw from established industry
sectors such as offshore wind, it adds.
POWER Digest
Indonesia Sees Surge in Contracts for New Power Plants.
Indonesia is Southeast Asia's largest economy, but because it is
stricken by chronic power shortages that limit economic growth,
the nation's government is pushing for massive infrastructure
improvements. A consortium of Japan's Electric Power Development
(J-Power), Itochu Corp., and Adaro Energy, an Indonesian
coal miner, on June 2 said they had won a tender to develop
a US$3.2 billion coal-fired power plant in Java, Indonesia, for
state-owned Perusahaan Listrik Negara (PLN). The 2,000-MW
plant is the country's first public-private partnership project. The
power plant is expected to begin operations in 2017.
On May 31, PLN announced that South Korea's Hyundai and
Indonesia's PP have secured a $339.4 million contract for the
construction of an 88-MW hydropower plant in Sumatra's Aceh
province. That plant is expected to be grid-connected by 2016.
Earlier, on May 12, China's Gezhouba Group said it plans to
construct a $1 billion hydroelectric power plant in Indonesia's
Sulawesi Selatan province and sell electricity produced by the
plan to PLN. Construction of that plant will begin in 2012 and
be completed in 2017. China Gezhouba has also signed a deal to
build a coal-fired power plant in West Kalimantan.
The country's hydropower expansion received another boost
in late May as the World Bank approved a $640 million loan to
help finance development of the Upper Cisokoan pumped storage
project-the first facility of its kind in Indonesia. Construction
of 1,000-MW project near Bandung, West Java, is expected to be
completed at a total cost of $800 million (PLN will provide the
remaining $160 million).
Chilean Government Greenlights Massive Hydropower
Project. The $7 billion HidroAysén hydropower dam project proposed
by utility Endesa Chile and Colbun on May 9 received environmental
approvals from the federal government commission.
The 2.75-GW project involves the construction of five dams: two
on the River Baker and three on the Pascua River. The first power
station will begin operation in late 2019; the complex will be
fully operational by 2025. Plant developers have been responding
to questions over the three-year environmental permit process,
but the plant continues to spark dissent because opponents
say it will flood untouched areas and displace communities. A
planned 2,000-kilometer (km) transmission line from Patagonia
to Santiago has not yet been approved.
Besides Chile, several Latin American countries-including Peru,
Ecuador, Colombia, Brazil, and Argentina-are developing massive
hydropower projects to sustain their growing economies. On June
1, Brazil's environmental protection agency, IBAMA, issued a final
installation license for the 11.2-GW Belo Monte hydropower project,
allowing Brazil's Norte Energia consortium to begin work on
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the site on the Xingu River, in the Amazon region. Earlier in May,
Brazilian iron ore producer Vale agreed to pay US$1.5 billion for a
9% stake in project, giving it the financial clout to proceed.
ABB Develops Energy Storage Solutions for UK, Swiss
Renewable Projects. ABB on May 19 commissioned its first
DynaPeaQ energy storage installation for utility UK Power Networks
at a site north of Hemsby in Norfolk, England. Part of
ABB's family of flexible alternating current transmission systems,
DynaPeaQ is a combination of static var compensator technology
with a highly scalable lithium-ion battery storage capability.
Wind energy from a local village will be fed into the power network,
and some of this energy will be kept in reserve to support
power supplies in the event of a fault, or to regulate the power
flow to compensate for the intermittence of wind power.
The ABB system includes eight stacks of 13 lithium-ion battery
modules housed in a 25-square-meter building. The modules will
be continually charged and discharged and can store up to 200
kWh of electrical energy, ABB said. The system's effectiveness will
be monitored in collaboration with the University of Durham and
potentially be replicated across many coastal parts of the UK.
ABB in May also said it would partner with EKZ, a Swiss distribution
utility, on a pilot storage facility in Dietikon, Switzerland.
The facility will be integrated into the utility's power distribution
network and evaluated in key areas such as balancing peak loads,
intermittent power supply, and the viability of such a solution for
grid optimization. ABB will supply and install the 1-MW lithiumion
battery-based solution capable of storing 350 kWh to 500
kWh, providing additional power to the grid on demand. EKZ will
evaluate the connection and behavior of grid-linked battery stor
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