Friday, April 12, 2013

Existing firms tapped to fill up Mindanao power lack

By Antonio L. Colina IV
Friday, April 12, 2013
DAVAO CITY -- An Interim Mindanao Electricity Market (IMEM) will start commercial operation by September this year in a bid to augment Mindanao's power generation, an official said on Friday.
IMEM is a measure that will tap the embedded generators of the electric cooperatives and other industries in order to supply areas in Mindanao where there's power lack.
During the public consultation on the IMEM at the Grand Regal Hotel, Philippine Electricity Market Corporation (PEMC) president Melinda Ocampo said IMEM allows electric cooperatives and the companies, which have embedded generators or the standby supply of power, to participate in the electricity market.

Ocampo said this electricity market works in a 24-hour basis. For instance, when a distribution utility in a particular area supplies power below its contracted capacity, the energy sourced from the IMEM participants -- embedded generators and industries -- will be sold if there is a need.

The selling and buying of electricity will be facilitated by the PEMC, a private entity commissioned by the Department of Energy (DOE) to develop and implement an interim electricity market designed for Mindanao.
"We are operating 24 hours... Merong mga embedded generators na naka-standby at hindi ginagamit within the franchise area," he said.
For this to become more efficient, distribution utilities must also come up with accurate forecasting as to what particular hour of the day the shortfall will happen so that curtailment, resulting in brownouts, will not recur.
She said IMEM is only an introductory to Wholesale Electricity Spot Market (WESM), which works as electricity market but has wide coverage than IMEM, has been applied in Luzon and Visayas areas.
Although, Ocampo could not determine how long IMEM will be implemented and when will the Mindanao adapt WESM. She said it will only happen when Mindanao joins Luzon and Visayas grid.
"The IMEM is envisioned to provide an opportunity for generators and other entities with excess or unutilized generation capacities, to offer or make use of such generation capacities, subject to compensation based on the resulting market prices," Energy Regulatory Commission (ERC) previously said.
PEMC allocated a total of P34.26 million to establish the IMEM, which was sourced from the excess collections of the market fees in the WESM last year.
"The approved amount will be refunded to the Luzon and Visayas WESM participants from whom the 2012 market fees were collected once the IMEM starts commercial operations," she said.
Romeo Montenegro, director for investment promotions and public affairs of Mindanao Development Authority, said previously that possible power generation from IMEM will reach to 200 to 300 megawatts (MW).
The lack of power in Mindanao is brought about by the reduced capacity of the Agus Pulangui hydropower plant. The peak demand in Mindanao reaches to 1,400 MW during peak hours, but the available capacity is only 1,200 MW. (Sun.Star Davao/Sunnex)   source

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