By
Lenie Lectura-May 30, 2019
POWER-generation firms,
or gencos, have committed to supply the Luzon grid 4,835.6 megawatts (MW) of
new capacity from 2019 until 2023, with half of the committed capacity to start
supplying the grid within the year.
Data from the
Department of Energy (DOE), however, showed that coal still dominates the mix
of new capacity at 81.7 percent or 3,950 MW out of the 4,835.6 MW, followed by
gas at 13.4 percent or 650 MW. The remaining additional capacity will come from
renewable energy (RE) sources.
For this year, power
projects with 2,449 MW of combined capacity are up for commercial operation. Of
which, 1,610 MW of capacity will be produced from coal, 650 MW from gas, 7.8 MW
from hydro, 115 MW from wind and 66.2 MW from biomass.
Based on the DOE list,
as of April 30, the Limay coal power plant project Phase II (150 MW) of
SMC Consolidated Power Corp. is targeted for commercial operation this month,
while the 300-MW Masinloc expansion project of AES Masinloc Power Partners Co.
Ltd. is up for testing and commissioning in August this year.
In December this year,
the 500-MW coal-power plant of San Buenaventura Power Ltd. Co. is
expected to proceed with its commercial operation.
GNPower Dinginin Coal
Plant Ltd. Co.’s Unit 1 (660 MW) is also up for commercial operation in October
this year.
Meanwhile, the 650-MW
Pagbilao gas plant of Energy World Corp. is still included in the DOE list
of committed power projects this year.
A total of 7.8 MW of
hydropower projects of four RE firms are expected to supply the grid in May,
June, July and December this year.
The 115-MW Concepcion 1
solar power project of Solar Philippines Tarlac Corp. is expected to start
commercial operation in July.
Seven biomass power
projects with 66.2 MW will be ready by June, September and December
this year.
“We are safe until
2022. Within our term, we are safe,” said Energy Assistant Secretary Redentor
Delola in an interview when asked how these power projects will help the
country’s power supply in the coming years.
He said peak demand
next year could reach nearly 12,000 MW as against this year’s 11,400 MW. Each
year, demand for electricity is predicted to increase anywhere from 500 MW to
800 MW.
“The new plants will
cover our demand for next year until 2021. By 2020, we will be
connected to the Mindanao grid,” said Delola referring to
the Mindanao-Visayas Interconnection Project (MVIP) of the National Grid
Corp. of the Philippines (NGCP).
Construction of the
multibillion-peso interconnection project is on schedule, with completion
expected in December 2020.
The MVIP aims to
connect the Mindanao grid to the Visayas grid, and which will ultimately lead
to a single, unified national grid by the time of its completion in 2020.
With a unified national
grid, power transmission services in the country will be more reliable as there
will be less power interruptions nationwide due to the sharing of local energy
resources. Reliable electricity transmission, in turn, could help boost
investments, infrastructure development and commerce in the country, said NGCP.
First Gen Corp.
President Francis Giles Puno commented that “gas is a superior option”
than coal and that the country must develop a more sustainable power mix.
“We need to make sure
the grid can accommodate the entry of variable RE and that’s where natural gas
plays a superior role compared to any other technology we have today.
“Our San Gabriel plant?
The tariff of that plant is lower. So, we are able to lower the price for
consumers but, at same time, it benefits from [the] flexibility of
operation such that when it needs to ramp down, it [would only take] a few
minutes and if it needs to ramp up, it [would only be] in a few minutes. In our
view, we believe gas is a superior option,” said Puno.
Aboitiz Power Chief
Operating Officer Emmanuel Rubio, meanwhile, stressed the need for
industry stakeholders to focus more on ramping up the country’s power reserves.
“Recently, we have been
talking about shortage of power…. We should be allowing plants to be
constructed ahead of reserve requirement,” said Rubio. “We need a certain
balance mix of technology in order to meet the requirements of energy demands
of country.”
Aboitiz Power plans to
hike its portfolio to 4,000 MW by 2020.
San Miguel Corp. (SMC)
President Ramon Ang, meanwhile, commented that new capacity and proper
maintenance schedule of power plants are two ways by which the country can
address the lack of supply which would sometimes lead to power outage.
“It’s a matter of
scheduling and policy so this issue on power supply can be solved. But, of
course, continued investment on new power projects is needed,” said Ang.
AC Energy Inc.
President Eric Francia, meanwhile, commented that the Electric Power Industry
Reform Act (Epira) plays an important role in the success of the country’s
power sector.
“Beyond 2022, there’s a
huge uncertainty facing the industry in terms of future of gas, LNG [liquefied
natural gas], and future of new plants. Epira is working albeit not yet fully
implemented. The full implementation of RCOA [retail competition and open
access] has been stalled. That should be tabled as front and center because
with an open and transparent market, we will be in an entirely different
level,” said Francia.
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