Department of Energy to form nuclear energy action plan

Danessa Rivera (The Philippine Star) - October 31, 2019 - 12:00am

https://www.philstar.com/business/2019/10/31/1964717/department-energy-form-nuclear-energy-action-plan

MANILA,Philippines — The Department of Energy (DOE) will form an action plan on nuclear energy following the recommendations made by the International Atomic Energy Agency (IAEA) amid the acceptance of more Filipinos for the controversial power resource.

Energy Secretary Alfonso Cusi yesterday received the official Phase 1 mission report of the Integrated Nuclear Infrastructure Review (INIR) mission, which is conducted by the IAEA to assist its member-states in evaluating the status of the 19 infrastructure requirements, to determine the possibility of introducing a safe, secure, and sustainable national nuclear program.

“Our acceptance and concurrence with the Phase 1 mission report would require us to submit our Phase 1 national action plan, which would be in response to the recommendation made by INIR mission with regard to the 19 nuclear power program infra issues,” Cusi said.

The report contains the IAEA initial findings on the country’s existing good practices, as well as the recommendations and suggestions for the DOE-Nuclear Energy Program Implementing Organization’s (NEPIO) preparation of the Integrated Work Plan (IWP).

DOE said the IWP would answer all IAEA concerns should the government decide to pursue the use of nuclear power as a potential source of energy for the country.

“The INIR mission concluded that there is a strong commitment from the government of the Philippines to a systematic approach to address nuclear infrastructure needs to set its nuclear power strategy. This is important,” IAEA deputy director general Mikhail Chudakov said during the turnover ceremony.

Among the key areas which the country needs further action on include the need to involve a broader range of stakeholders to form a national commitment to introduce nuclear power, to develop a legal and regulatory framework on nuclear program, and to further develop its understanding nuclear power.

In involving a broader range of stakeholders, Cusi said the DOE has conducted a survey on the acceptability of nuclear with the Filipinos by engaging the Social Weather Survey (SWS) last May.

“The survey showed 72 percent would follow or would believe the decision of the President. So the biggest endorser of nuclear would be President Duterte,” he said.

In April last year, the DOE submitted a proposed national policy on nuclear energy to President Duterte for approval.

The proposed national policy not only covers the use of the mothballed Bataan Nuclear Power Plant (BNPP), but also the development of modular nuclear power plants across the country.

Cusi said the President expressed his intention to learn and study more about nuclear power in the country.

In terms of laying down a legal and regulatory framework, the IAEA said the Philippines is on the right track with bills which seek to address nuclear safety, security and safeguards.

Both houses of Congress have also been working on laws to support nuclear energy development.

Electric cooperatives reduce system losses in 1st half

October 31, 2019 | 12:04 am

https://www.bworldonline.com/electric-cooperatives-reduce-system-losses-in-1st-half/

ELECTRIC cooperatives managed to cut their system losses during the first half, allowing them to post a 13% increase in energy sales, the National Electrification Administration (NEA) said on Wednesday.

“This is a clear indicator that electric cooperatives are fully committed and ready to compete with other power distribution utilities in the country. Lower system losses contribute to a reduction in power rates,” said NEA Administrator Edgardo R. Masongsong in a statement.

System loss, or electricity lost during transmission, improved by 1.19 percentage points to 10.38% in the first six months from 11.57%, according to a report by NEA’s information technology and communication services department.

The reduction further placed the national system loss of electric cooperatives (ECs) under the 12% system loss cap set by the Energy Regulatory Commission (ERC). The cap is what limit that can be passed on to the monthly electricity bills of consumers.

NEA said based on its data, 96 ECs posted a system loss that is within the cap. Of these cooperatives, 39 recorded single-digit system loss. Up to 15 ECs reported a double-digit system loss of 13% to 20%. The number is lower than the 31 in the previous year.

“I hope they will strive to sustain the gains they have made, and do their utmost to further improve their services to their member-consumer-owners and other stakeholders,” Mr. Masongsong said.

NEA said the ECs that posted the lowest system losses were Aurora Electric Cooperative, Inc. at 2.03%; Batanes Electric Cooperative, Inc. at 2.79%; Leyte II Electric Cooperative, Inc. at 2.91%; South Cotabato II Electric Cooperative, Inc. at 2.91%; and Misamis Oriental I Rural Electric Service Cooperative, Inc. at 2.99%.

Completing the top 10 are: Dinagat Island Electric Cooperative, Inc. with 3.74%; Cebu III Electric Cooperative, Inc. at 3.88%; Bohol I Electric Cooperative, Inc. at 6.20%; Iloilo III Electric Cooperative, Inc. at 6.27%; and Surigao del Sur I Electric Cooperative, Inc. at 6.38%.

NEA said 14 regions recorded a reduction in their system losses and contributed to the decline in the overall level. This resulted to increased energy sales by 13% and revenues by 14%.

During the period, the total energy sales of the ECs reached 11,397 gigawatthours (GWh), up 13.3% from 10,060 GWh in the same period last year. National gross revenue of the ECs grew 13.6%% to P112.12 billion from P98.74 billion.

The agency said the higher sales were also driven by the increased consumption of residential sector at 5,951 GWh followed by commercial sector at 2,515 GWh, industrial sector at 1,634 GWh, public building at 588 GWh, and other consumers at 709 GWh. — Victor V. Saulon

DOE accepting applications to develop exploration area in Palawan

Danessa Rivera (The Philippine Star) - October 31, 2019 - 12:00am

https://www.philstar.com/business/2019/10/31/1964714/doe-accepting-applications-develop-exploration-area-palawan

MANILA,Philippines — The Department of Energy (DOE) has opened its doors for applications to develop a nominated exploration area in northeast Palawan.

The DOE-Energy Resource Development Bureau (ERDB) has received counter bids for Nominated Area No. 4 in Northeast Palawan under the Philippine Conventional Energy Contracting Program (PCECP).

“We actively welcome all PCECP applications, as each one has the potential to bring us closer to maximize the exploration, development, and utilization of our indigenous energy resources to help us attain energy security and independence,” Energy Secretary Alfonso Cusi said.  

Nominated Area No. 4 was applied for by Repsol Exploracion S.A. (Repsol), and was the only company that submitted the application requirements. 

The DOE-ERDB conducted a technical, legal, and financial “completeness check,” which Repsol passed.

Following the completeness check, the ERDB and the technical working group—composed of the DOE’s Legal Services and Financial Services—will further conduct substantive evaluation of Repsol’s proposal within 15 working days.

To help attain energy security, as well as cushion the country from the volatility of global oil price markets, the DOE established the PCECP to help reinvigorate petroleum exploration and development activities in the Philippines.

Under the PCECP, the DOE offered 14 pre-determined areas (PDAs), and the option for investors to propose their own exploration area, making oil and gas exploration a dynamic investment prospect for players in the energy sector. 

The agency started accepting nominations in February last year, while the first batch of PDAs was launched in November 2018. 

During the process, the DOE received bids for only four out of 14 PDAs amid challenges in the country’s upstream sector.

These are from Israel-based Ratio Petroleum Ltd. for Area 3 in east Palawan; local firms Esmaulana iGlobal Ventures Inc. and Sulu Sea Energy Resources Development Corp. for Area 6 in Sulu Sea; Philodrill Corp. and PXP Energy Corp. for Area 7 in Sulu Sea and Esmaulana Global Ventures Inc. in Area 10 in Agusan-Davao.

The agency also received nominations for a prospect in east Palawan from Sulu Sea Energy Resources Development Corp., in northwest Palawan from Troika Giant Power Corp., and in Ragay Gulf from Superior (SG) Shipyard Inc.

The DOE  will continue offering oil and gas prospects under the PCECP to help reinvigorate the country’s oil and gas exploration sector.

Presently, there are only 23 active Petroleum Service Contracts (PSC) in the country.

Among all PSCs, the Malampaya deep water gas-to-power project is the most successful. As the largest natural gas industrial project in the Philippines, it recovered all costs in four years.