Meralco’s hi-tech coal-fired power plant seen online in Sept

By: Ronnel W. Domingo - 05:02 AM July 31, 2019

https://business.inquirer.net/275801/meralcos-hi-tech-coal-fired-power-plant-seen-online-in-sept

Manila Electric Co. expects an easing of the tight power generation capacity in the Luzon grid as its P56.2-billion, 455-megawatt San Buenaventura power plant in Quezon will be ready for commercial operation in September as scheduled.

Rogelio L. Singson, president of Meralco PowerGen Corp. (MGen), said in a briefing that a spate of yellow and red alerts declared for Luzon starting even before the summer months showed the urgent need for new power generation capacity.

Yellow means the reserve generating capacity is insufficient if power plants went on unplanned or forced outage. Red means electricity demand is likely to exceed available capacity.

“At MGen, the synchronization of our 455-MW San Buenaventura supercritical coal-fired plant to the grid was ahead of our schedule with full commissioning on target for September 2019, Singson said.

Supercritical power plants are among coal-fired facilities that use “high efficiency, low emission” technologies, which means they harness more heat out of coal compared to conventional coal-fired plants.

According to MGen, the San Buenaventura plant—which is located in Mauban town—is the first supercritical power plant in the Philippines, a status that was achieved in May, a month after getting connected to the grid.

This means that San Buenaventura is so far the most high-tech coal-fired power plant in the country.

ERC blocks bid of Transco, Psalm to intervene in NGCP’s IPO delay

By Lenie Lectura- July 31, 2019

https://businessmirror.com.ph/2019/07/31/erc-blocks-bid-of-transco-psalm-to-intervene-in-ngcps-ipo-delay/

THE National Transmission Corp. (Transco) and the Power Sector Assets and Liabilities Management Corp. (PSALM) were not allowed by the Energy Regulatory Commission (ERC) to intervene in the petition for the approval of the IPO (initial public offering) extension filed by the National Grid Corp. of the Philippines (NGCP).

In its 12-page order, the ERC denied for lack of merit the petition for intervention filed by Transco and PSALM. At the same time, the ERC ruled that it has jurisdiction to hear and decide on NGCP’s petition.

“It is clear that RA 9511 and the Concession Agreement affirmed that neither PSALM nor Transco has the authority to regulate or supervise NGCP’s compliance with its franchise law, only this commission.

“Therefore, PSALM and Transco has no direct and substantial interest in the instant petition, more so on its outcome, lacking one of the requirements of the commission to grant their petition for intervention. Hence, the same should be denied,” stated the ERC order which was signed by the chief of the oversight committee for legal service, ERC Commissioner Josefina Patricia Magpale-Asirit.

The ERC said there are two requisites for granting the petition for intervention: one, if the petition has a direct and substantial interest in the proceedings; and two, if the intervention would not unduly broaden the issue.

“Applying the said parameters, Transco and PSALM failed to show that they have direct and substantial interest in the petition, hence, the same is hereby denied,” said the ERC. “A mere invocation of the Epira which created Transco and PSALM does not automatically vest them the right to intervene in the instant proceedings, absent any clear legal standing as required by the rules of the commission.” Also, the ERC pointed out that it has the jurisdiction to hear and decide NGCP’s petition, as it is the regulatory agency of the government with sole authority to regulate the transmission business.

 “The very subject matter of this petition is the obligation of NGCP for public listing under Section 8 of RA 9511. This is squarely within the jurisdiction of the commission pursuant to the Epira,” added the ERC.

Under the law, NGCP should make a public offering of the shares representing at least 20 percent of its outstanding capital stock within 10 years from the commencement of its operation or until January 14, 2009.

On November 13, 2018, NGCP filed a petition for extension for the listing of the shares.

Among others, the NGCP cited the following reasons for delaying its IPO:

• The pending arbitration case filed by NGCP before the Singapore International Arbitration Centre (SIAC) against Transco and PSALM.
• The delay in the implementation of its Regulatory Reset.
• The period provided for compliance with Section 8 of RA 9511 is merely directory.
• There is no implementing rules and regulations for compliance with Section 8 of RA 9511.
• The timing of the public offering is addressed to the discretion of NGCP’s board if directors.

Transco and PSALM filed their opposition questioning the jurisdiction of the ERC in December 2018.

MGreen seen to seal RE deals to beef up portfolio by 350 MW

By Lenie Lectura - July 31, 2019

https://businessmirror.com.ph/2019/07/31/mgreen-seen-to-seal-re-deals-to-beef-up-portfolio-by-350-mw/

MGEN Renewable Energy Inc. (MGreen), a wholly owned subsidiary of Meralco PowerGen Corp. (MGen), is expected this year to seal deals in renewable energy (RE) that will beef up its portfolio by 350 megawatts (MW).

“There are potential deals in the pipeline. One or two deals this year,” said Meralco President Ray C. Espinosa. He declined to provide details, saying the deals are covered by a nondisclosure agreement (NDA) signed by the company. “Once a deal has been firmed up, we will make the necessary announcements.”

MGen is a wholly owned subsidiary of Meralco. MGen President Rogelio Singson said the RE projects being eyed by MGreen are “almost near completion.”

“In terms of our commitment, of the group to expand our RE projects, we are lining up in the immediate future, as early as 2020, about 350 MW of RE projects that are almost near completion. Unfortunately, we are covered by an NDA, so we can’t disclose until we sign agreements with them,” said Singson.

He said the RE deals will be signed this year but the commercial operation date of these RE projects, which include solar and microgrid, “could be next year.”

Meralco Chairman Manuel V. Pangilinan had said that RE would play a significant role in Meralco’s power portfolio, following President Duterte’s State of the Nation Address.

Duterte reiterated the need for the country to develop more RE sources and reduce dependence on traditional energy sources such as coal.

MGen is pushing for the completion of 1,000 MW of RE projects in the next five to seven years.

As part of this plan, it established MGreen to serve as the platform for the strategic push to develop renewable-energy projects, primarily solar, wind and run-of-river hydro. 

In addition, the large RE requirement of distribution utilities and electric cooperatives under the Renewable Portfolio Standards (RPS) is more than compelling reason for MGen to allocate resources into this area.

Singson said the RE deals this year are “definitely” targeted to be completed in time for the release of RPS guidelines. 

“My recollection is 500-600 MW RPS requirement, may kick in by 2022,” he said.

RPS mandates distribution utilities to source a minimum portion of energy from renewable sources, thus guaranteeing a market for renewable-energy generators. This minimum will be increased on a yearly basis.

“We are working on several renewable-energy prospects and we recognize the significant reduction in the development cost, particularly for large-scale solar and wind over the past years. Notwithstanding the ongoing requirement for new reliable base-load generation to support the fast-growing Philippine economy, we believe that the time is right to focus on building our green energy capacity and we intend to be a key player in this expanding sector,” Singson said earlier.