AG Suood ‘finds’ letter from speaker of parliament requesting former AG to dissolve a case of MP Nazim

Attorney General (AG) Husnu Suood has claimed to have discovered a letter signed by the Speaker of the Parliament and Dhivehi Rayyithunge Party (DRP) MP Abdulla Shahid requesting a former attorney general dissolve a case against Deputy Speaker and Deputy Leader of the People’s Alliance (PA) MP Ahmed Nazim, who has recently been charged for corruption and bribery.

Suood revealed he had the letter at a Maldivian Democratic Party (MDP) event at Dharubaaruge last night.

Press Secretary for the President Mohamed Zuhair explained that Speaker of Parliament Abdulla Shahid was the executive secretary for the former President Maumoon Abdul Gayoom when he sent the letter.

“The letter was sent to the former attorney general, and Suood managed to find it in his office,” said Zuhair. “It was a case related to 500 [electricity] house meters and one other case, both related to the State Electric Company (STELCO).”

Zuhair further said that People’s Alliance party (PA) leader and MP Abdulla Yamin was the Chairman of STELCO at the time.

“The government will investigate all cases of corruption and will send the matter to the Prosecutor General’s office and present those people before the judges,” he said. “If the lower courts find them innocent, we will take it to the higher courts, to the Supreme Court and if necessary, to the international courts.”

Shahid denied the claims and said he had never sent such a letter to a former attorney general.

“I was not even in a position to send a letter to the former attorney general requesting someone’s case be dissolved,” he said. “When people make allegations like this, they should define it so the accused knows how to respond.”

Nazim did not respond to Minivan News at time of press.

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Subsidy for more electricity consumers from September: Firaq

Electricity usage exceeding 400 units may be subsidised from September, the deputy minister for home affairs Mohamed Firaq told Television Maldives (TVM) on Sunday, reports Haveeru.

The additional subsidies would go to applicants after a review of their financial situation, said Firaq. The government presently subsidises electricity usage below 400 units. “After September, subsidies will be provided to applicants. Usage of below 400 units will be subsidised after an ‘easy’ form is submitted. Subsidies for those who use more than 400 units will be provided after they submit a special application form,” Firaq said. “Sometimes the electricity bill becomes hefty for houses with large families… The new policy aims to provide subsidies to this group.”

The forms are available at STELCO and the National Social Protection Agency.

The government gives some Rf5.5 million as subsidies to STELCO, and the amount would reach Rf60 million by the end of 2010, reports Haveeru. The fuel surcharge would be subsidised.

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DRP welcomes electricity subsidies but will continue protests

The Dhivehi Rayyithunge Party (DRP) has announced it will continue its ‘red notice’ protests, despite welcoming changes the government’s new subsidies for electricity charges.

National Social Protection Agency (NSPA) today said that it changed the per unit rate for subsidies for electricity charges, a move intended to people who cannot afford the electricity bill.

According to the changes, charges for 0-100 meter units would be Rf1.50, 101-200 meter units Rf1.70, 201-300 meter units Rf2.15 and 301-400 units Rf2.50, for people receiving subsidies.

Charges for those not identified as eligible for a subsidy will remain at Rf2.25 for 0-100 units, Rf2.50 for 101-300 units, Rf 2.95 for 301-500 units, Rf3.55 for 501-600 units and Rf3.85 above 601.

NSPA Chairperson Ibrahim Waheed said that the subsidied charges were cheaper than 2008 prices.

”No changes were brought to the [normal] charges, but the subsidised rates have changed,” he said.

No changes were made to unsubsidised electricity charges because the government wished to run the State Electric Company (STELCO) without a loss, he said.

He said that the changes in the subsidised rates had no connection with the DRP-led protests.

DRP MP Ahmed Mahloof meanwhile said the protest would begin tonight at 8:45pm, and would start near the tsunami monument.

”Maldivian Democratic Party MDP’s protest outside the Vice President’s house has proved us that climbing gates was not prohibited,” Mahloof said. ”We will climb the gates of Muleeage [the President’s official residence] tonight.”

Mahloof said he had information that the police has planned to use rubber bullets to disperse tonight’s gathering.

DRP MP Ahmed Nihan said that DRP welcomed the changes brought to the electricity charges, but ”will continue the protest as we have planned.”

Nihan said that 80 percent of the people ought to receive subsidies for electricity charges.

”The procedure NSPA follows is not very comprehensive,” he said, ”but we welcome the changes they brought.”

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Gaafaru Wind Farm: the future of Male’s power?

The Gaafaru wind farm project to power the Male’ region will be operational by August 2013, the government has promised, although the cost has already soared to US$370 million from a predicted US$250 million.

The agreement between the State Electricity Company Limited (STELCO) and Falcon Energy to build and run a 75mW wind farm in Gaafaru, North Malé Atoll, should produce enough clean energy for Malé, Hulhulé and a number of resorts to “switch off their existing diesel power generators” according to the President’s Office.

The wind farm will be required to produce an uninterrupted minimum of 45mW. On windy days, “excess electricity…will be used to run a water desalination plant.” On calm days, there will be a gas turbine which can produce up to 50mW of back-up power.

GE Energy is the most likely candidate to supply the wind turbines, and will also be supplying a desalination plant and the 50 mW back-up generator powered by liquefied natural gas (LNG).

The project’s local lead, Omar Manik, told Minivan News the Gaafaru wind farm is expected to completely replace the electricity currently produced and provided by STELCO, and should save the government about US$50 million a year.

Wind speed concerns

According to an American Wind Energy Association (AWEA) 2005 report, the minimum average wind speed needed to run a utility-scale wind power plants is 6 metres per second (21.6 km/h).

The AWEA report states that because “power available in the wind is proportional to the cube of its speed… doubling the wind speed increases the available power by a factor of eight.”

For example, a turbine operating at a site with an average of 20 km/h should produce 33 percent more electricity than a site operating at 19 km/h, because the cube of 20 is larger than the cube of 19.

This means that a difference of just 1 km/h in wind speed could significantly bring down productivity in the wind farm.

According to figures published in a 2003 report by the US National Renewable Energy Laboratory (NREL), North Malé Atoll has an annual average wind speed of 4.9 m/s (17.7 km/h), with the maximum average wind speed recorded of 8 m/s (28.8 km/h).

The Gaafaru wind farm is meanwhile expected to run on a minimum wind speed of 5.7 m/s.

Manik explained that wind farm engineers relied on [a minimum wind speed of] 15 m/s for a utility farm ten years ago, but due to efficiency gains “today it’s 3.5 m/s.”

Most of the data used for the Gaafaru project was collected by Manik, with help from the Department of Meteorology, at both 40 and 80 meters above ground.

Manik noted that the important thing when gathering wind speed data is “how high it is and how much wind there is. The higher you go, the better it is.”

The masts for the wind turbines at Gaafaru will be 80 metres high, with the propellers reaching a diameter of 50 metres. Manik explained “at 80 metres there will be very good wind.”

The wind farm

Manik said a preliminary feasibility study on wind speeds has been conducted and the project is moving forward as planned.

The project is being funded and run by UK-based Falcon Energy Group, but is represents a consortium of four companies; two from the UK, including Falcon Energy, one from Saudi Arabia and one from Holland. Currently, they are surveying wind power and negotiating prices for freight, turbines and gas supply.

The wind farm will use STELCO’s power grid, but will replace its powerplant in Male’.

“The powerhouse in Malé is limited, they have land problems, fuel price problems. We need renewable energy,” Manik explained.

The wind farm should produce from 60-70mW of energy, “which is still higher than what is required by the government,” Manik said. “STELCO will still be the provider. We are selling to them and they are providing.”

The wind farm is expected to run at 85 percent productivity, and any excess energy will be automatically sent to run the desalination plant.

Wind turbines

The project’s team is currently analysing how many turbines will be needed to produce the required 45mW of electricity. Manik noted that two 25mW turbines will be more costly than one 50mW turbine.

He said they are looking at turbines that use no oil at all, because “the most important thing for us is not the energy. It’s the coral reef,” and the turbines must therefore be 100 percent environmentally friendly.

They are also studying the pH and moisture levels in the water, Manik said, to prevent corrosion in the turbines. Anti-corrosive zinc tablets will be placed in the mast and the turbines to keep them from rusting.

The turbines will be shipped from Lisbon, Portugal, but it is proving difficult and expensive to ship them to Malé.

Back-up generator and desalination plant

The back-up generator and water desalination plant will be located in Hulhumalé and will be provided by GE. The back-up generator, a gas-powered turbine, will have a production capability of 50mW and should be installed in about eight months.

Energy produced by the back-up is expected to replace STELCO’s electricity by late next year. “The back-up generator will be the first thing to be installed,” Manik said, adding that the most important thing was relieving STELCO from having to purchase more generators next year.

He said they are currently negotiating the gas contract for the back-up with one company in Sri Lanka and one in India. First, they need to know how many gas tanks will be needed and what sizes they will need to be. Building the gas tanks, Manik said, will take about a year.

Because excess wind energy “cannot be bottled or stored,” it must be used. If it is not used, Manik explained, it will lower productivity, so any extra energy will go into powering the desalination plant.

The back-up will most likely run on liquefied natural gas (LNG) since it is the “the best option to get where we want to be: carbon neutral,” Manik said, but noted that petroleum gas (regular cooking gas) has a larger heating capacity and does not pollute the air much more than LNG.

Manik said the water produced in the desalination plant would most likely be sold to Hulhumalé, although the government has previously said it would use it for bottled water.

STELCO and power grids

The clean energy produced by the wind farm will be distributed through STELCO’s existing power grids in Malé, and distributed through new submarine cables. Manik noted the 60 km of submarine cables are very expensive to buy and lay out, and will have to be replaced in about 50 years.

He said the biggest issue with the grids is ensuring the current grids in Malé can handle the amount of energy that will be produced by the wind farm.

“If there are 75mW of power coming into this grid, this grid should handle that,” Manik said. He added that they still need to figure out whether the electricity will be coming in through STELCO’s main power generator or into the four individual grids set out in Malé.

Economics and timelines

Falcon Energy group is investing most of the US$370 million needed to fund this project. Manik noted a lot of that money will be loaned by international banks to Falcon Energy.

“International banks are very keen to invest in the Maldives,” he said, “but they need eighteen months of wind surveys. They are becoming partners, they don’t want to lose their money.”

Manik says although both Falcon Energy and the banks know there is “good wind,” they will only invest once they can see wind data collected over eighteen months, which would ensure the data is varied and accurate.

He said while the remaining wind surveys and the installation of the back-up generator are being conducted, once they have six months of data “to give us full confidence, then we will start planting the foundations for the wind turbines.”

“By the time the eighteen months are up, the turbines should be completed,” he added.

Manik said that while “the government doesn’t come up with any money, when you go into a big project like this, even the receiver has to do something, some work.”

The work he is referring to is the possibility that the government might have to “rearrange” how the clean energy will be brought into the city.

“They may have to lay some cables. Maybe. Minimum investment from the government.”

He said it would help if the project could “tap into” some of the funds recently donated to the country, both in the Donor Conference and the Climate Change Trust Fund, but said that is something they are not really thinking about.

“We have to use what is available now. And we also need to show that we are capable people.”

Manik said the cost of the project has risen from the original figure of US$250 million to US$370 million “because there is no infrastructure here, and it has to be built by us.”

The MoU states that Falcon Energy must provide an uninterrupted power supply to STELCO for twenty years “starting from a given date.”

“It has to always be transparent,” Manik said, “you are working with the government, it has to be clear.”

The wind turbines should be working by June 2013 and the back-up generator should be operational by October 2011.

Correction: the wind mast to carry out further tests is being sent from Portugal, not the turbines.

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Gaafaru Wind Energy project survey on the way

In preparation for the Gaafaru Wind Energy project, a survey has begun to monitor the wind speed in Gaafaru, reports Miadhu.

The State Electricity Company (STELCO) said it will take nine months to complete the survey.

This project is part of the government’s pledge to turn the Maldives into the first carbon-neutral country by 2020, and will be a joint venture between STELCO and a foreign investor.

Reports say the project is worth US$250,000,000.

The wind project would produce clean electricity for parts of North Malé Atoll, including Malé, Hulhulé and a number of resorts.

The project would require the construction of latest generation wind turbines, which would connect to Malé’s electricity grid through submarine cables.

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President reiterates commitment to electricity subsidies

The president has revealed the government will further subsidise electricity bills to cushion people in Male’ from rising energy costs.

Speaking in his weekly radio address, President Mohamed Nasheed acknowledged that many households in Male’ were having difficulty with the new electricity prices.

“Our estimate is that about 3000 households struggle to pay their bills. Therefore, the government has decided to provide them with more support,” he said.

President Nasheed also stated that more people were being made aware about the application process for subsidies.

STELCO, the state electricity company, recently dramatically increased the price for the first 300 units of electricity. In response, a group MPs from the ruling government’s own party came forward to urge the government to do something.

The government has said previously that it will broaden eligibility for subsidies, noting that the current eligibility criteria was based on data collected in 1997.

Under that data, the poverty line is considered Rf 21 (US$1.50) a day. The president said that a new survey was under way.

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Party backlash over 33% boost in electricity prices

The ruling Maldivian Demcratic Party (MDP) have expressed concern over the raised electricity prices in Male’.

“It has always been a vow of the MDP to lower living costs, however at the moment electricity prices are ridiculously high,” said MDP chairperson Mariya Didi.

MDP MP Hamid Abdul Gafoor explained the main issue was the change in the pricing scheme.

“On average, a household will use at least 300 to 350 units of electricity in a month,” he said.

STELCO, the state electric company, recently dramatically increased the price for the first 300 units of electricity. The first hundred units have risen from Rf1.60 to Rf2.25, while the second and third hundred units have risen from Rf .70 and Rf2.15 to Rf2.50 each.

That means the average monthly electricity bill for household has risen almost overnight from Rf545 ($US42) to Rf725 ($US56).

“Many people are assuming we are attacking the government, but we are just voicing the concerns of the people,” Hamid said.

Currently there is a Rf45 subsidy per head per day to help with the cost of electricity for households with monthly incomes of less than Rf9450 ($US735).

“We have to get rid of this mentality that if a house hold electricity bill is high, they are well off,” urged MDP MP Eva Abdulla. “We have to assume that it might just be 12 people living in that household, chipping in for the bill – this is the reality.”

The president’s office issued a statement claiming the government was listening to the concerned MPs.

“We can’t provide additional financial assistance to STELCO – if we did that we would have to start printing money, and this would devalue the ruffiyya,” said the president’s press secretary, Mohamed Zuhair.

Hamid agreed that the solution was not to print more money.

“If we were to print an additional Rf50 million, it would only raise inflation and we would have no control over prices,” he said.

“The MDP wants to increase the subsidy, but there are many issues we need to rethink,” he said. “The figures we are currently using to calculate eligibility for the subsidy is very outdated, so there is research underway to get a ground figure.”

Mariya noted that many eligible households were failing to claim the subsidy.

“We have conducted house-to-house research and found that many people do not have sufficient information about the subsidy and thus have not been filling out their subsidy forms,” she said.

Cutbacks

The government could only boost subsidies if it reduced its current spending, Eva claimed, renewing the government’s controversial calls to slim the administration by reducing the spend on civil servant salaries.

“The government needs to reduce the civil service – offices should only have the required number of employees for optimal performance. Only then will government spending be reduced,” she said.

Civil service spending must be kept “on hold” until the government’s income surpassed Rf7 billion, Hamid said.

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