SIEA PROJECTS AND CAPITAL EXPANSION PROGRAMME ( )

Transcription

1 SIEA PROJECTS AND CAPITAL EXPANSION PROGRAMME ( ) May 2014

2 Contents Acronyms... 3 Introduction Owners Engineers (OE) SIEA HQ refurbishment project Honiara Power Station generation upgrade project kV switchgear project kV underground cable project New Lungga Workshop Project for the upgrade of Header Tanks and Cooling system at Lungga New Lungga power station Lungga 1MW Solar Farm project Fiu River Hydropower project (FRHP) Outstation Development Projects SISEP Additional Financing... 7

3 Acronyms ADB -Asian Development Bank AUD - Australian Dollar FRHP - Fiu River Hydropower Project G-1 - Generation minus one (a term used to describe a situation where a generator is taken offline) HQ - Headquarters JICA - Japan International Cooperation Agency kw - Kilo Watts MMERE - Ministry of Mines, Energy and Rural Electrification MVA - Megavolt ampere (a unit of measure of apparent power) MW - Mega Watts NZD - New Zealand Dollars OE - Owners Engineers PREP - Provincial Renewable Energy Project PV - Photo Voltaic SCADA - Supervisory Control and Data Acquisition SKM - Sinclair Knight Merz SI - Solomon Islands Dollar SIEA - Solomon Islands Electricity Authority SISEP - Solomon Islands Sustainable Energy Project US - United States Dollar WB - World Bank Exchange Rate: AUD$1 NZ$1 US$1 = SI$6.72 = SI$6.30 = SI$7.26 Source: Date: 01/05/14

4 Introduction SIEA strives to develop and implement capital and infrastructure investment plans over the next five years that will support its mission to provide a safe, reliable and affordable supply of electricity to the Solomon Islands. SIEA has a major capital expansion programme over the next five years totalling over SI$1 billion. Funding for these projects come from concessional loans and grant under the World Banks Solomon Islands Sustainable Energy Project (SISEP), ADB s Provincial Renewable Energy Project (PREP), specifically earmarked for the Fiu River Hydropower project, and from Solomon Islands Electricity Authority (SIEA). There will be over 20 projects completed concurrently over time and SIEA is proud to be able to expand and upgrade its services to meet future demand but at the same time provide reliable and affordable electricity for its valued customers. 1. Owners Engineers (OE) Sinclair Knight Merz (SKM) of Australia have been contracted as SIEA s engineers to carry out technical due diligence and ensure contractors are adhering to project specifications and that contract conditions and obligations are met for all its projects. This is an integral part of SIEA s overall management of the projects as this ensures the projects meet SIEA s planning requirements. SKM together with SIEA also carried out generation and network planning studies to identify key development plans and upgrade options to improve on SIEA s operations. These consulting services are ongoing for a period of 16months for a total contracted amount of AUD$971, SIEA HQ refurbishment project A newly refurbished SIEA office, with a new look, had recently been completed. The work involves a complete makeover of SIEA s main administration office in Ranadi. The project covers the complete remodelling and furnishing of the Customer and Corporate services offices, Finance and Engineering offices, a Corporate archive space, a Board and Training room and a Staff cafe. The remodelling work provides an open workspace that promotes more interaction between staff at all levels. Work was contracted out to MP construction, a local building contractor, for a total cost of SI$7.7m. Phase two of the project, which is now at its planning and design stage, involves landscaping and upgrading of the car park area with designated parking spaces for customers and staff with an improved site drainage system. A drive through window where customers can pay for their cash power tokens will be introduced to reduce queues and at the same time improve customer services. This is targeted to promote customer service improvement through change and innovation.

5 Under phase two as well, there will be a pilot survey funded by JICA for introduction of grid-connected PV generation. Solar PV panels totalling 50 kw will be mounted on car garages and fed directly into the grid. Phase three, which is still at its at its initiation and planning stage, involves the relocation and remodelling of the Stores and Distribution workshop including construction of a Supervisory Control and Data Acquisition (SCADA) control room where SIEA can efficiently control and monitor systems and operations remotely. 3. Honiara Power Station generation upgrade project Honiara power station was SIEA s first station before it expanded its generation operation to Lungga, which now is SIEA s premier power station. It is still maintained as backup station/substation and houses switching arrangements for Honiara feeders. Work was contracted out to Energy Power System, Australia and supported by SIEA. The generators were installed and commissioned on 26 February 2014 for a project cost of SI$12m. This project includes the supply and installation of 2 new 1.5 MW Caterpillar generators and is aimed at providing at least a (G-1) level of supply reliability. The new generators are also used as a backup supply for Honiara when generation capacity in Lungga is reduced for reasons such as maintenance. Additional information on the successful commissioning of the generators can be found on this website kV switchgear project The 11kV switchgear project is for the design, manufacture, testing, installation and commissioning of switchgear facilities at the Honiara power station. This project aims to replace and upgrade the old and unreliable switchgears at the Honiara power station. Work is currently progressing well and in accordance to planned schedule and is due to be completed and put into operation by September The work is contracted out to North Power of New Zealand for a total contracted sum of NZD$2.42m. Fletcher Kwaimani JV is currently subcontracted to construct the switchgear room to house the equipment kV underground cable project This project involves the design, manufacture, testing and installation of 33kV underground cables and fibre optic cables from Lungga power station to the Ranadi substation. It will replace the existing 33kV underground cables currently linking Lungga power station and Ranadi sub-station. Work is currently in progress with anticipated completion expected by May Work is being carried out by Pernix (Fiji), with a local contractor, Island Road Works, subcontracted to do the trenching works. The project costs NZD$1.25m with an

6 additional USD$0.6m for the design, manufacture and supply of the cables and related accessories. 6. New Lungga Workshop As part of SIEA s plan to upgrade and increase it generation capacity at the Lungga power station, a new workshop facility is currently being constructed at Lungga that will provide a safe working environment for the maintenance of new and existing generation equipment at the station. Although the project had been slightly delayed because of the recent inclement weather, work is now back on track with anticipated completion by June The project costs SI$6.8m and is being contracted out to a local contractor, Vitech SI Ltd. 7. Project for the upgrade of Header Tanks and Cooling system at Lungga Generators depend on water cooling systems to work efficiently. This project aims to address de-rated capacity by addressing water cooling issues such as hardness, which causes scales in the pipes. Water used for the cooling system is supplied from a borehole at next to the site and water tests are carried out regularly to insure treatments can be correctly administered to control hardness. The project includes the supply and installation of six new expansion tanks and associated pipework for the cooling system. Works are carried out by Vitech SI Ltd for a project cost of SI$1.4m. The project is expected to be completed by May/June New Lungga power station A major undertaking that is soon to be contracted out in the coming months is the construction of a new power station at Lungga. The new power station will be located adjacent to the existing one and will be furnished with 4 new 2.5MW generators with an option to expand additional generation capacity when the need arises in future. This will be a multi-million dollar turnkey contract that is expected to start early this year and be completed by the end of the year. With the construction of new transmission and distribution lines into Guadalcanal Plantation Palm Oil Limited area, the construction of this new power station is a turning point for SIEA and the Honiara as a whole as the reliability of its generation capacity and capability can be guaranteed and fully utilised.

7 9. Lungga 1MW Solar Farm project. Going forward, SIEA is looking to investing in clean and renewable energy sources as one of its value is to care for the environment. A feasibility study investigating the development of a 1MW grid-connected solar power station was completed in With an estimated capital cost of over US$6m with a payback period of 8years, the project will save SIEA approximately US$880,000 per annum in diesel costs and help levelise the cost of electricity. 10. Fiu River Hydropower project (FRHP) FRHP is a run-of-river scheme that will supply SIEA s Auki system. It comprises a low height diversion weir, headrace canal, penstock pipe and a surface powerhouse. The initial installed capacity will be 500kW (2 x 250 kw units) with provision for addition of a third 250 kw unit to meet future load growth. The final installed capacity will be 750 kw. The implementation of FRHP also includes the construction of an 11 kv transmission line of about 10 km length and an extension of the distribution grid to supply communities living in the vicinity of the hydro facilities, along the transmission corridor and in nominated SIEA extension area. With the current recruitment exercise carried out jointly by ADB, SIEA and MMERE for Design and Supervision consultants and customary land acquisition progressing well, civil works are expected to start towards the end of Outstation Development Projects Demand for electricity in the SIEA s provincial outstations will increase over the next 5 years and as such approval had been given to procure and install additional generation capacity for Gizo, Noro, Munda, Buala, Auki, Tulagi and Lata stations. These development plans were derived from a planning study carried out by SKM in 2012/2013. Under this project, there are development plans to construct and upgrade the power stations in Gizo, Noro, Munda and Buala so they can house the additional generators but at the same time meet international recognised standards. The budget for this programme is SI$18.4m and will be funded wholly by SIEA. There are also plans in place to extend SIEA s network into new load centres. Design and Planning are currently being carried out by the Distribution engineers for Gizo, Noro and Tulagi. 12. SISEP Additional Financing Under the US$13m SISEP additional financing arrangement, a number of projects and activities were proposed from studies done on the current generation and distribution capacity and reliability of SIEA operations in Honiara.

8 These projects are aimed to significantly improve the quality, reliability and efficiency of electricity supply that supports economic growth in the country. The proposed projects include: a. Upgrade of the transformer capacity at Ranadi substation, by adding 1 x 5MVA 33kV/11kV transformer, a 33 kv and 11kV Switchboards. b. Construction of a new Power System Control Room and Dispatch Centre at the Ranadi Headquarter to remotely control and monitor the daily generation and distribution operations. c. Procurement and installation of a 1 x 12.5 MVA transformer and upgrade switching arrangements at the Lungga Power Station. This is to ensure reliable supplies to the city in the contingent event of a failure of one of the other two 12.5 MVA transformers and simultaneous loss of up to 2 generation units at the power station. d. Construction of a 33kV/11kV Zone Substation at Kola a Ridge, including a 1x7.5 MVA transformer, so as to reliably supply the rapidly growing residential area near Kola a Ridge e. Construction of a second power circuit to supply the Feeder 12 area south of Honiara International Airport. This new circuit will terminate at the Honiara East Zone Substation and will involve construction of overhead lines parallel to the north and south sides of the airport runway and an underground circuit crossing the eastern end of the runway. f. Bulk supply metering to more accurately measure power flows, reduce electrical losses, and improve revenue collections. These network investments are financed to enhance the capacity of distribution transformers, lines and substations on the Honiara grid in order to meet the existing and growing power demands more efficiently, provide better quality and quantity of electricity uses, and reduce power system losses.