Apr Energy : Economies Can't Grow in the Dark

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Clive TURTON

Managing Director

- Asia Pacific

Clive Turton joined APR Energy as Re- gional Vice President for Business De- velopment - Asia Pacific in April 2013, and now serves as Managing Director of the Asia Pacific region. Mr. Turton is one of Asia's most experienced and successful power sector professionals and possesses a wealth of knowledge and experience in the Asian power sector across project development, financing and capital transactions.

Mr. Turton has been involved in substantially all of Asia's major power transactions as advisor, financier or developer during his 20-year career, including the acquisition and financ- ing of the Sual, Pagbilao and Ilijan projects on behalf of Marubeni Corp and Tokyo Electric Power Corp. Mr. Turton was also involved in the priva- tization of electricity networks and as- sets in a number of Asian geographies including Singapore, Philippines, Ko- rea and Thailand. Prior to joining APR Energy, Mr. Turton worked for over a decade in the Asian power industry as a project director for Mirant Asia- Pacific and more recently as Head of Energy and Utilities for ING Bank.

In addition to Mirant and ING Bank, his previous employers include Clay- ton Utz in Sydney and for Gide Loy- rette Nouel in Paris. Mr. Turton holds his Bachelor and Law degrees from The Australian National University.

l Welcome to PiMagazine Asia, can you tell us a bit about Yourself and company?

APR Energy is a leading provider of fast-track mobile turbine power. Our fast, flexible and full-service power solutions provide customers with rapid access to reliable electricity when and where they need it, for as long as they need it. Over the years, we have installed and operated

more than 2.5 gigawatts of power genera- tion in more than 30 countries.

I joined APR Energy in 2013, and serve as Managing Director of the Asia Pacific region. During my career over the past 20 years, I have been involved in many of Asia's major power transactions as advi- sor, financier or developer while at APR Energy, Mirant Asia-Pacific and as Head of Energy and Utilities for ING Bank.

l Welcome to PiMagazine Asia, can you tell us a bit about Yourself and company?

APR Energy is a leading provider of fast-track mobile turbine power. Our fast, flexible and full-service power solutions provide customers with rapid access to reliable electricity when and where they need it, for as long as they need it. Over the years, we have installed and operated

more than 2.5 gigawatts of power genera- tion in more than 30 countries.

I joined APR Energy in 2013, and serve as Managing Director of the Asia Pacific region. During my career over the past 20 years, I have been involved in many of Asia's major power transactions as advi- sor, financier or developer while at APR Energy, Mirant Asia-Pacific and as Head of Energy and Utilities for ING Bank.

l Frequent Power outages & increas- ing demand, unmet by a poor grid infrastructure are currently driving demand in the diesel& gas generator market. How quickly can your busi- ness respond to the market from initial order to installation?

APREnergy is the world leader in rapid deployment of turbine technology as well as diesel power modules. We have deployed the industry's most efficient and low-emission technology for power plants from 15MW to 450MW at sites across the world in under 90 days from contract signature to COD. Our plants

operate in conflict zones, in third world countries as well as developed countries including Australia and Japan.

l Gas is growing in Asia at a massive rate and has been forecast to overtake coal in the coming years. Can you tell us about your gas generators and how you can meet these challenges?

APR Energy operates one of the world's largest fast-track gas power module plantsnear Mandalay, Myanmar. This 102MW plant was commissioned 90 days after contract and is one of the largest thermal plants in the country, running on indigenous natural gas and deliver- ing a cheap and clean source of power to this fast-developing and power-hungry region.

We also have a large gas plant plant op- erating in the Pilbara region of Western Australia. Our unique turbine technol- ogy deployed at that site operates on clean-burning natural gas and provides power to Horizon Energy, one of Western Australia's two main utilities. This plant utilizes four TM2500+ units, a technology that APR Energy is uniquely able to pro- vide on a fast-track basis. These units are also unique in the fast-track power mar- ket in that they can operate on natural gas, but also have the flexibility to operate on diesel as well as LPG, kerosene, and naphtha - making these units highly flex- ible to the needs of our customers where alternative or multiple fuels are available.

l What projects are you most proud of in Asia?

I am particularly proud of the work we did in Myanmar. Our award-winning 102MW gas project there was the first large-scale investment by a U.S.power company following the lifting of the sanctions, and was built in record time to serve a market that benefitted greatly from the additional power. I am also very proud of the work we were able to do with the local community; APR Energy was able to build new classrooms and provide materials for a number of schools in the area and it was a great experience for me personally to visit these schools and see the smiles on the faces of the kids that will benefit from improved educa- tional infrastructure.

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l Due to growing environmental restrictions around the World, what plans do you have in place to ensure your generators meet stringent envi- ronmental concerns?

APR Energy is unique in the fast-track power business in our ability to provide world-class advanced turbine technol- ogy on a fast track basis. We deploy the TM2500 mobile turbine units to our sites around the world and this is the lowest emissions and lowest noise-producing fast-track power generation equipment available on the market.

We have a number of customers for whom the environmental aspects of the available equipment is of great impor- tance, and we are uniquely placed to serve those customers with this high- tech mobile turbine equipment.

l What are the key issues to enable power generation to remote communi- ties for industrial and residential usage When you are talking about remote com- munities, you are typically referring to developing nations where power infra- structure is limited and the challenges to financing and constructing permanent generation may be nearly insurmountable.

One of the advantages of fast-track mobile power is that the generating capacity is modular and can be easily and quickly transported anywhere in the world by land, sea or air. In addition, the power modules and gasturbines can be bundled,providing scalablegenerat- ing capacity fromapproximately 10 MW to500 MW or more. It's also important to point out that this distributed power solution can be placed near the demand, reducing the need for transmission and distribution infrastructure and while also cutting the powerloss that occurs as electricitytravels long distances across- the grid. Finally, for developing parts of the world, up-front customerinvestment is minimal,avoiding long-termfinancing and credit issues. The customer provides the site and the fuel, and begins to pay only once power is generated.

l Ease of maintenance is very impor- tant to many when deciding on which genset to install. On installation, what do your company do to ensure the gensets keep the lights on?

APR Energyhas an excellent reputation

and a long track record of providing stable

and reliable power across the globe from conflict zones to developed countries. We are able to do this through our team of pro- fessional fast-track power plant operators and our world-leading installation team. We recognize that there is an important difference constructing and operating a fast-track plant and we have designed all of our systems and technology as well as trained our staff to ensure that we can offer the best reliability in the market. A unique aspect of our power solution is that we hire and train up to 70 percent of our workforce from the local community. When a project ends and our plant is decommissioned, those skills and capabilities remain in the community providing benefits for years to come.

l Infrastructure development is particularly strong all over Asia at present. What market verticals are you seeing the most growth and what are the reason for this?

Asia is the fastest-growing region both in terms of economic growth and population growth. Obvious drivers of this growth include two of the world's largest countries India and China, but in addition Asia contains a number of emerging economies that are rapidly moving toward modern and industrial- ized economies such as Thailand and Indonesia. Growth in power demand leads economic growth in developing countries and so where you see eco- nomic growth of 5% in developing Asian countries there will be 7% or 8% growth in power demand.

The challenges of meeting this require- ment for additional power generation through traditional sources is clear in the numerous gaps in generation and transmission across the region. APR Energy has been called upon many times by regional governments and indus- trial users to bridge the gaps created by growing demand and lack of traditional infrastructure. Through our ability to develop large-scale power generation infrastructure in 90 days or less, we have been able to ensure that people in these growing economies have access to elec- tricity and ensure that economic growth can continue, as lack of electricity stifles economic growth.

l The ability to tailor your products to

a specific cus-

tomer application is very important and many companies do not have this flexibility. Can you give our readers an example of how you have tailored your solution to meet a customer requirement and the benefits they received on receiving your solution?

The turnkey project provided for Myanmar is a good example of our ability to custom- ise a solution to meet the unique needs of a customer. In this case, the customer required rapid delivery of 82MW of power using indigenous natural gas. Our gas-fired generating modules provided one of the most reliable and fuel-efficient solutions in the temporary power market. Just as important, we were able to provide power modules with a fuel system designed to operate on low-pressure pipeline natural gas. Our solution also featured an advanced control system that allows for automatic operation, either locally or remotely. That said, the ability to operate the plant locally has not been an issue, since we have suc- cessfully hired and trained the majority of employees who installed the plant and now operate and maintain it from the local community.

Ultimately, our ability to deliver this much-needed generating capacity within the aggressive 90-day timeframe was instrumental in our being hired to install an additional 20MW the following year to help offset reductions in hydropower during the spring dry season.

l I would like to thank you for your time today, it's been a great experience and an interview I'm sure our readers will love. Before we sign off here, can you summarise why any company would benefit from working with you? We have installed 2.5GW of power in more than 30 countries around the world, helping to fuel economic growth and an enhanced quality of life for more than 25 million people. Part of what makes APR Energy unique is that we also provide more than power, as we are ac- tive in each of our communities and hire a large portion of our workforce locally. When you combine that added value that we bring to each of our projects with our long-established reputation for operational excellence and customer satisfaction, you can see why we have strong track record of project renewals and expansions and why we are a leader in our industry.

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Economies Can't Grow in the Dark

I

by Clive Turton

n Southeast Asia only four coun- tries rank above the world average on the United Nations' Human

Development Index (HDI), a compara- tive measure of life expectancy, literacy, education, standards of living and qual- ity of life. Brunei, Malaysia, Singapore and Thailand score significantly higher on these measures than those on other side of the spectrum - countries such as Cambodia, Indonesia, Laos, Myan- mar and Philippines lag far below the average.

Among the "haves" and "have nots" there seems to be a common denomi- nator - access to reliable electricity. The impact is significant.

In those countries ranking above the world average on the HDI electrifica- tion is widespread. The same cannot be said for those countries lagging on the HDI. In Myanmar alone nearly 36 million (68 percent of the population) live without power, while in Indonesia one-quarter of its 240 million people - the equivalent of seven Londons or 30 Bangkoks - are without this essential

ingredient for a higher quality of life. Statistics show that access to electric- ity generation can be life altering. In countries with reliable power: Average gross domestic product is six times higher Average life expectancy is 20 years longer Average unemployment is 33 percent lower

Average monthly wages are 10 times higher

The good news is that there's an avail- able solution that offers electricity in weeks rather than years for the tens of millions in the region who are without

- mobile fast-track power generation. This source of distributed power, using state-of-the-art gas turbine technology and diesel and gas-powered reciprocat- ing engine generators, offers myriad benefits as a bridge to a better quality of life and economic growth while per- manent plants travel the long, expen- sive and uncertain road to completion. Those benefits begin with minimal up- front investment, since customers sim- ply provide the site and fuel, avoiding long-term financing and credit issues.

Customers begin to pay only once the

electricity is flowing.

In terms of the equipment, mobile power modules and gas turbines are easily transportable by land, sea and air, and they can be bundled to provide scalable generating capacity from 10MW to 500MW or more - enough to provide power to thousands, even mil- lions, of people.

As a result of that mobility, generating capacity can be located near demand, reducing transmission and distribu- tion infrastructure requirements and energy losses across long stretches of power lines. This is particularly significant in countries like Cambodia and Myanmar that experience power distribution losses of 18 and 25 per- cent respectively.

Because these machines can be pow- ered up and down quickly to meet fluctuating demand, they also are an ideal supplement to intermittent solar and wind power and in countries like Myanmar, whose heavy reliance on hy- dropower is adversely impacted during the annual dry season.

With successful fast-track projects in

more than 30 countries, my company has seen the nexus between new power gen- eration and the creation of local jobs, increased house- hold income and growth of revenue-generating indus- trial production. Similarly, the recipients of fast-track power soon gain access to things the developed world takes for granted, such as refrigeration and adequate lighting for schools and hospitals.

The evidence is clear - ac- cess to reliable electricity is a game changer when it comes to enhancing the standard of living and qual- ity of life. Through mobile fast-track power generation, developing nations can get out of the dark and begin to grow their economies in weeks rather than years.

Mr. Turton is Managing Di- rector, Asia Pacific, for APR Energy.

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