Business World Online
Posted on August 26, 2014 10:42:00 PM
THE GOVERNMENT has sought to allay fears on the power shortage looming next year, even as preparations -- including the cornerstone interruptible load program (ILP) -- have yet to gain ground.
Speaking before members of the Management Association of the Philippines (MAP) in Makati City, Energy Secretary Carlos Jericho L. Petilla said yesterday: “We are projecting several times when the Luzon grid will be on yellow and red alert between March and May. There will be a shortage, but there are things that we can still do as early as this year.”
Mr. Petilla reiterated the government’s options, including more effective implementation of the ILP, a measure by which big consumers run their own generation sets to ease power demand in exchange for compensation.
“The Department of Energy (DoE) conducted coordination meetings with business groups to encourage participation in ILP,” Mr. Petilla told businessmen at MAP’s meeting in The Peninsula Manila.
“Right now, the only committed participants have total capacity of 115 megawatts (MW). This is the same figure we had last summer, but we are pushing and hoping more companies will participate.”
Mr. Petilla said DoE expects a total of 800 MW additional capacity under the ILP alone if more big consumers participate.
“DoE is coordinating with the Energy Regulatory Commission on regulatory support to encourage greater participation,” he said.
Besides the ILP, the department wants an enhanced energy efficiency and conservation program. “It’s hard to implement this because it’s voluntary. But if everyone will participate, I’m sure we can survive the expected shortage next summer,” Mr. Petilla said.
He also encouraged government agencies and commercial establishments to reduce settings of their cooling systems.
“The DoE is also coordinating with the PEZA (Philippine Economic Zone Authority) on support to encourage and provide incentives for locators who will invest in or upgrade to energy-efficient equipment,” Mr. Petilla noted.
The Energy chief also pointed out that his recommendation to invoke the power crisis provision of the Electric Power Industry Reform Act of 2001 (EPIRA) will be his last resort. Invoking Section 71 of the law would allow the government -- through the Power Sector Assets and Liabilities Management Corp. -- to contract additional generating capacity to address the looming shortage.
“The DoE is coordinating and undertaking preparatory works to be ready in case the recommendation gets approval,” he said.
He noted that the Joint Congressional Power Commission has yet to endorse the department’s recommendation.
The Energy department expects all these measures to yield a total of 1,035 MW additional capacity before summer.
“There are projects that are factored in our projections. But all these should come online as targeted to help the problem,” Mr. Petilla said.
He said these include the 300-MW unit of the Malaya thermal power plant (expected to be commissioned by March 2015); a 200-MW natural gas plant of Energy World Corp. (March 2015); First Gen Corp.’s 100-MW Avion natural gas plant (April 2015); Trans-Asia Oil and Energy Development Corp.’s 135-MW Putting Bato coal plant (December 2014); and South Luzon Power Generation Corp.’s 300-MW coal plant (March 2015).
MAP reiterated its support for the government’s ILP and energy management thrusts.
Ernesto B. Pantangco, chairman of MAP’s committee on energy, said these measures should be implemented before invoking EPIRA’s Section 71. “A limited implementation of Section 71 will further enhance or ensure there will be enough power in summer 2015,” he said. “We therefore encourage other groups to reconsider their position on this and support limited implementation.”
MAP wants government to limit contracting of additional capacities to 300 MW and only for up to two years “so we don’t end up with expensive power we no longer need.” The Luzon grid is expected to be 200 MW short in May 2015. -- Claire-Ann Marie C. Feliciano source
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