Danessa Rivera - March 30, 2020 - 12:00am
https://www.philstar.com/business/2020/03/30/2004205/meralco-expects-sales-drop-march
MANILA, Philippines — Manila Electric Co. (Meralco) expects a drop in sales in March due to significantly lower demand as the Philippine government placed Luzon under enhanced community quarantine, according to Meralco first vice president and head of customer retail services and corporate communications Victor Genuino.
“(We’re) finalizing the numbers, but we see a big decline in demand, particularly from the commercial and industrial sectors since the start of the quarantine period,” he said.
The enhanced community quarantine in Luzon closed down most offices, malls and other establishments, forcing most Filipinos to stay home except for health and emergency frontline services.
While the residential sector drove last year’s sales volume growth, Genuino said it cannot make up the lost energy demand alone during the quarantine period.
“(It’s) hard for residential to cover the drop in demand of industrial and commercial customers,” he said.
Earlier, Meralco president and CEO Ray Espinosa said the company registered gains in terms of sales in the first two months despite the coronavirus scare.
“What’s good about it actually is people are at home most of the time, and electricity consumption increased,” he said.
For this year, Meralco was banking on the residential and property sector to continue to propel Meralco’s sales and income.
“The property sector is buoyant, not just for POGO which is on the commercial side, but also on the residential side. The more residential units are turned over and occupied, that contributes to energy sales,” Espinosa said.
Data from the Department of Energy (DOE) showed electricity consumption dropped by around 30 percent year-on-year amid the Luzon-wide enhanced community quarantine to contain the spread of the coronavirus disease 2019 or COVID-19.
Electricity demand is based on the DOE’s monitoring, which indicates that most of the economic activities have slowed down, Energy Secretary Alfonso Cusi said earlier.
Independent Electricity Market Operator of the Philippines Inc. (IEMOP), the country’s electricity spot market operator, also saw electricity prices drop in the wholesale electricity spot market (WESM) as power demand significantly dropped amid the implemented quarantine to arrest the spread of COVID-19.
Starting March 16, IEMOP said demand in both Luzon and Visayas was reduced from the forecasted average of 10,606 megawatts (MW) to 8,917 MW, representing a decline of 15.9 percent.
In Luzon alone, IEMOP data showed demand from March 15 to 21 fell from the forecasted 8,916 MW to an average of 7,252 MW during the implementation of enhanced community quarantine in the whole island.
Monday, March 30, 2020
Oil prices cheaper by P2/liter
posted March 30, 2020 at 01:10 am by Alena Mae S. Flores
https://manilastandard.net/news/national/320669/oil-prices-cheaper-by-p2-liter.html
The oil companies will again cut pump prices by as much as P2 per liter to reflect the movement of prices in the world oil market.
Seaoil Philippines led the latest price cuts of P2 per liter of gasoline, P1.95 per liter of kerosene and P0.50 per liter of diesel from 6 a.m. on Monday.
Pilipinas Shell Petroleum Corp. and Petro Gazz will cut prices at the same rates starting at 6 a.m. on Tuesday.
The other oil distributors are expected to follow suit.
“Please see fuel price rollback of Shell effective 6AM Tuesday, March 31, 2020. Gasoline, P2 per liter decrease, kerosene, P1.95 per liter decrease and diesel, P0.50 per liter decrease,” Pilipinas Shell said in its advisory.
This will be the fourth consecutive weekly oil price rollback as many countries become severely affected by COVID-19, prompting demand to fall significantly as people stay home to avoid being infected.
On March 24, the oil firms cut gasoline and kerosene prices by P3.50 per liter and diesel by P2 per liter.
On March 14 to 17, the oil companies also cut prices by P4.25 per liter of gasoline and diesel and P4.35 to P4.50 per liter of kerosene.
The year-to-date adjustments now stand at a net decrease of P12.85 per liter of gasoline, P14.59 per liter of diesel and P16.29 per liter of kerosene, according to the latest data from the Energy department.
As fuel demand goes down amid the 30-day enhanced community quarantine, oil retailers may be forced to reduce operating hours or close shop.
Demand for cooking gas, however, is going up as families stay home due to the quarantine.
“I don’t have the numbers but a lot of gas stations both the major and smaller players are affected. The bigger you are, the more you are affected because of the bigger overhead,” Eastern Petroleum chairman Fernando Martinez said earlier.
“Stations with minimum required volume are open with half the operating hours.”
https://manilastandard.net/news/national/320669/oil-prices-cheaper-by-p2-liter.html
The oil companies will again cut pump prices by as much as P2 per liter to reflect the movement of prices in the world oil market.
Seaoil Philippines led the latest price cuts of P2 per liter of gasoline, P1.95 per liter of kerosene and P0.50 per liter of diesel from 6 a.m. on Monday.
Pilipinas Shell Petroleum Corp. and Petro Gazz will cut prices at the same rates starting at 6 a.m. on Tuesday.
The other oil distributors are expected to follow suit.
“Please see fuel price rollback of Shell effective 6AM Tuesday, March 31, 2020. Gasoline, P2 per liter decrease, kerosene, P1.95 per liter decrease and diesel, P0.50 per liter decrease,” Pilipinas Shell said in its advisory.
This will be the fourth consecutive weekly oil price rollback as many countries become severely affected by COVID-19, prompting demand to fall significantly as people stay home to avoid being infected.
On March 24, the oil firms cut gasoline and kerosene prices by P3.50 per liter and diesel by P2 per liter.
On March 14 to 17, the oil companies also cut prices by P4.25 per liter of gasoline and diesel and P4.35 to P4.50 per liter of kerosene.
The year-to-date adjustments now stand at a net decrease of P12.85 per liter of gasoline, P14.59 per liter of diesel and P16.29 per liter of kerosene, according to the latest data from the Energy department.
As fuel demand goes down amid the 30-day enhanced community quarantine, oil retailers may be forced to reduce operating hours or close shop.
Demand for cooking gas, however, is going up as families stay home due to the quarantine.
“I don’t have the numbers but a lot of gas stations both the major and smaller players are affected. The bigger you are, the more you are affected because of the bigger overhead,” Eastern Petroleum chairman Fernando Martinez said earlier.
“Stations with minimum required volume are open with half the operating hours.”
Solar power facility rises in Romblon
By Lenie Lectura - March 30, 2020
https://businessmirror.com.ph/2020/03/30/solar-power-facility-rises-in-romblon/
The Romblon Electric Cooperative Inc. (Romelco) has put up a P12-million 200-kilowatt (kW) solar photovoltaic power system in four barangays as part of its Grid-Tied Solar Roof Mounted Project, which aims to provide clean, sustainable, and reliable energy to its consumers.
The solar power facility is composed of four solar panels installed on the rooftops of the four covered courts in Barangays Lunas, Macalas, Mapula, and Ilauran in Romblon. Each has a capacity of 50 kilowatt, or a total installed capacity of 200 kW, which already generates electricity for the consumers.
“This is more efficient than a single big installation. Since this is distributed, the installation is fast. It only took us less than a week to set up the panels for each rooftop,” said Romelco General Manager Rene Fajilagutan.
Romelco plans to expand the project throughout its entire coverage area. “This is our test-bed for the bigger distributed solar power plant. This year, our target installation is a 2-megawatt solar energy system,” he said.
The solar energy project was conceived in partnership with the local governments of Romblon. Fajilagutan said Romelco will pay lease to the four barangays for the use of rooftop spaces for a period of 20 years.
The project is also part of Romelco’s commitment to generate 90 percent of its electricity supply from renewable-energy (RE) sources, such as solar, wind, hydro, and biomass, by the end of the year.
Its other RE projects include 900-kW wind turbines on the hills of Barangays Agnay, Bagacay, and Lonos; 1,350-kW mini hydro power plant in Cantingas, San Fernando, Sibuyan Island; 30-kW solar diesel hybrid generation system in Cobrador Island; and 18-kW biomass gasifier in Barangay Alad, Romblon.
The Office of Renewable Energy Development (ORED) of the National Electrification Administration’s (NEA), meanwhile, said more electric cooperatives (ECs) are venturing into renewable-energy projects.
NEA will subsidize the feasibility study on the development of hybrid mini-grid system using renewable energy and battery system for four ECs.
A separate feasibility study on hybridization of existing diesel power plants with renewable energy and battery system for three ECs in Eastern Visayas is also ongoing, funded through subsidy from the National Economic and Development Authority.
Meanwhile, 10 ECs are also planning to develop microgrid projects in their respective franchise areas. However, the Association of Isolated Electric Cooperatives Inc. (AIEC) said these planned projects have no funding yet.
https://businessmirror.com.ph/2020/03/30/solar-power-facility-rises-in-romblon/
The Romblon Electric Cooperative Inc. (Romelco) has put up a P12-million 200-kilowatt (kW) solar photovoltaic power system in four barangays as part of its Grid-Tied Solar Roof Mounted Project, which aims to provide clean, sustainable, and reliable energy to its consumers.
The solar power facility is composed of four solar panels installed on the rooftops of the four covered courts in Barangays Lunas, Macalas, Mapula, and Ilauran in Romblon. Each has a capacity of 50 kilowatt, or a total installed capacity of 200 kW, which already generates electricity for the consumers.
“This is more efficient than a single big installation. Since this is distributed, the installation is fast. It only took us less than a week to set up the panels for each rooftop,” said Romelco General Manager Rene Fajilagutan.
Romelco plans to expand the project throughout its entire coverage area. “This is our test-bed for the bigger distributed solar power plant. This year, our target installation is a 2-megawatt solar energy system,” he said.
The solar energy project was conceived in partnership with the local governments of Romblon. Fajilagutan said Romelco will pay lease to the four barangays for the use of rooftop spaces for a period of 20 years.
The project is also part of Romelco’s commitment to generate 90 percent of its electricity supply from renewable-energy (RE) sources, such as solar, wind, hydro, and biomass, by the end of the year.
Its other RE projects include 900-kW wind turbines on the hills of Barangays Agnay, Bagacay, and Lonos; 1,350-kW mini hydro power plant in Cantingas, San Fernando, Sibuyan Island; 30-kW solar diesel hybrid generation system in Cobrador Island; and 18-kW biomass gasifier in Barangay Alad, Romblon.
The Office of Renewable Energy Development (ORED) of the National Electrification Administration’s (NEA), meanwhile, said more electric cooperatives (ECs) are venturing into renewable-energy projects.
NEA will subsidize the feasibility study on the development of hybrid mini-grid system using renewable energy and battery system for four ECs.
A separate feasibility study on hybridization of existing diesel power plants with renewable energy and battery system for three ECs in Eastern Visayas is also ongoing, funded through subsidy from the National Economic and Development Authority.
Meanwhile, 10 ECs are also planning to develop microgrid projects in their respective franchise areas. However, the Association of Isolated Electric Cooperatives Inc. (AIEC) said these planned projects have no funding yet.
Energy dep’t clears country’s first offshore wind energy projects
March 30, 2020 | 12:08 am
https://www.bworldonline.com/energy-dept-clears-countrys-first-offshore-wind-energy-projects/
THE PHILIPPINES will soon be powered by new wind energy sources, as the Department of Energy has awarded a contract to develop the country’s first offshore wind energy projects.
On Sunday, the Triconti Windkraft Group of Companies, a group of Filipino, Swiss and German companies focused on developing wind energy sources in the Philippines, said it had secured an exclusive service contract to develop the country’s pioneering renewable energy projects.
The Guimaras Strait and Aparri Bay projects have a combined potential output of 1,200 megawatts (MW) or 1.2 gigawatts (GW).
The two wind ventures, according to Triconti Windkraft Group President Lila Rosenberger, “showcase excellent, consistent wind speeds and are very accessible from the foreshore in terms of grid connectivity and maintenance.”
“With the quickly evolving wind turbine and off-shore technology, it is quite realistic to expect that these projects can bring more than 1.2 GW of much needed clean and affordable power into the market,” she added.
“With its scale and efficiencies, we believe that it offers a cost-competitive and greener alternative to conventional fuel power plants,” said Stefan Simon, a group partner and the managing director of Switzerland-based Stream Invest Holding AG.
Currently, Triconti Windkraft Group has 1.7 GW of onshore wind energy projects around Luzon and the Visayas, including its first project in Nabas, Aklan set to go online by 2022. — Adam J. Ang
https://www.bworldonline.com/energy-dept-clears-countrys-first-offshore-wind-energy-projects/
THE PHILIPPINES will soon be powered by new wind energy sources, as the Department of Energy has awarded a contract to develop the country’s first offshore wind energy projects.
On Sunday, the Triconti Windkraft Group of Companies, a group of Filipino, Swiss and German companies focused on developing wind energy sources in the Philippines, said it had secured an exclusive service contract to develop the country’s pioneering renewable energy projects.
The Guimaras Strait and Aparri Bay projects have a combined potential output of 1,200 megawatts (MW) or 1.2 gigawatts (GW).
The two wind ventures, according to Triconti Windkraft Group President Lila Rosenberger, “showcase excellent, consistent wind speeds and are very accessible from the foreshore in terms of grid connectivity and maintenance.”
“With the quickly evolving wind turbine and off-shore technology, it is quite realistic to expect that these projects can bring more than 1.2 GW of much needed clean and affordable power into the market,” she added.
“With its scale and efficiencies, we believe that it offers a cost-competitive and greener alternative to conventional fuel power plants,” said Stefan Simon, a group partner and the managing director of Switzerland-based Stream Invest Holding AG.
Currently, Triconti Windkraft Group has 1.7 GW of onshore wind energy projects around Luzon and the Visayas, including its first project in Nabas, Aklan set to go online by 2022. — Adam J. Ang
Group gets contracts for 2 offshore wind power projects
By: Ronnel W. Domingo / 04:05 AM March 30, 2020
https://business.inquirer.net/293684/group-gets-contracts-for-2-offshore-wind-power-projects
The Triconti Windkraft Group of Companies said it had secured from the Department of Energy (DOE) two pioneering service contracts for offshore wind energy in the Philippines.
Triconti is a partnership between Filipino, Swiss and German companies founded to develop wind energy projects in the Philippines.
The Makati City-based group said the DOE had granted them contracts related to a project in Aparri Bay off Cagayan province in northern Luzon and another in Guimaras Strait off Negros Occidental in the Visayas.
The two projects, to be undertaken with Switzerland-based Steam Invest Holding AG, potentially have a combined output of up to 1,200 megawatts.
The Aparri project is designed to rate at 500 MW to 600 MW while the Guimaras project is designed for 600 MW.
“We are excited to bring the benefits that offshore wind power promises to the Philippines,” Steam Invest managing director Stefan Simon said in a joint statement.
“With its scale and efficiencies, we believe that it offers a cost-competitive and greener alternative to conventional fuel power plants,” Simon said.
According to Triconti, with the service contracts granted to them, they now hold the exclusive rights to studying and developing the very first offshore wind projects in the country
“Guimaras Strait and Aparri Bay showcase excellent, consistent wind speeds and are very accessible from the foreshore in terms of grid connectivity and maintenance” Triconti president Lila Rosenberger said.
“With the quickly evolving wind turbine and offshore technology, it is quite realistic to expect that these projects can bring more than 1.2 gigawatts of much needed clean and affordable power into the market,” Rosenberger said. INQ
https://business.inquirer.net/293684/group-gets-contracts-for-2-offshore-wind-power-projects
The Triconti Windkraft Group of Companies said it had secured from the Department of Energy (DOE) two pioneering service contracts for offshore wind energy in the Philippines.
Triconti is a partnership between Filipino, Swiss and German companies founded to develop wind energy projects in the Philippines.
The Makati City-based group said the DOE had granted them contracts related to a project in Aparri Bay off Cagayan province in northern Luzon and another in Guimaras Strait off Negros Occidental in the Visayas.
The two projects, to be undertaken with Switzerland-based Steam Invest Holding AG, potentially have a combined output of up to 1,200 megawatts.
The Aparri project is designed to rate at 500 MW to 600 MW while the Guimaras project is designed for 600 MW.
“We are excited to bring the benefits that offshore wind power promises to the Philippines,” Steam Invest managing director Stefan Simon said in a joint statement.
“With its scale and efficiencies, we believe that it offers a cost-competitive and greener alternative to conventional fuel power plants,” Simon said.
According to Triconti, with the service contracts granted to them, they now hold the exclusive rights to studying and developing the very first offshore wind projects in the country
“Guimaras Strait and Aparri Bay showcase excellent, consistent wind speeds and are very accessible from the foreshore in terms of grid connectivity and maintenance” Triconti president Lila Rosenberger said.
“With the quickly evolving wind turbine and offshore technology, it is quite realistic to expect that these projects can bring more than 1.2 gigawatts of much needed clean and affordable power into the market,” Rosenberger said. INQ
PSALM thumbs down capacity purchase cut
Published March 29, 2020, 10:00 PM By Myrna M. Velasco
https://business.mb.com.ph/2020/03/29/psalm-thumbs-down-capacity-purchase-cut/
State-run Power Sector Assets and Liabilities Management Corporation (PSALM) said it will not concur to capacity off-take (power purchase) reduction during the enhanced community quarantine (ECQ), even with proposals that it can invoke a ‘force majeure’ condition.
The company stressed that force majeure event may warrant payment extension, but it opined that such may not jus¬tify reduction in capacity payments for volume purchases that the parties had agreed on contractually.
“While force majeure justifies extension of the period to pay, the contracts with PSALM do not indicate suspension or lowering of the minimum energy off-take or of the minimum charges based on the contract energy per billing period,” the government-owned firm has stipulated.
It added “the contracts require that the force majeure event must render it impossible for a party to fulfill its obligation, such as when its operations are totally paralyzed to receive the supply of energy.”
The firm expounded that such force majeure event shall not just be based on a “mere incapacity to consume the contract energy or inability to meet the minimum charges or off-take.”
Force majeure entails the occurrence of unforeseeable circumstances that could prevent parties from fulfilling provisions of their contract.
With the novel coronavirus (COVID-19) pandemic, there had been proposals for generation companies or power suppliers to invoke force majeure under their power supply agreements, so the mandated capacity off-takes can be temporarily waived, and such may subsequently bring down rates for power consumers.
But in the grand scheme of things, it appears that state-owned PSALM has been the first one to pull the plug on that recommendation for the power industry during these trying times.
The company similarly indicated that it is extending payments and collections for 30 days from array of customers and contract counter-parties; but such shall only be for billings falling due within the prescribed duration of the enhanced community quarantine which is from March 15 to April 14 this year.
https://business.mb.com.ph/2020/03/29/psalm-thumbs-down-capacity-purchase-cut/
State-run Power Sector Assets and Liabilities Management Corporation (PSALM) said it will not concur to capacity off-take (power purchase) reduction during the enhanced community quarantine (ECQ), even with proposals that it can invoke a ‘force majeure’ condition.
The company stressed that force majeure event may warrant payment extension, but it opined that such may not jus¬tify reduction in capacity payments for volume purchases that the parties had agreed on contractually.
“While force majeure justifies extension of the period to pay, the contracts with PSALM do not indicate suspension or lowering of the minimum energy off-take or of the minimum charges based on the contract energy per billing period,” the government-owned firm has stipulated.
It added “the contracts require that the force majeure event must render it impossible for a party to fulfill its obligation, such as when its operations are totally paralyzed to receive the supply of energy.”
The firm expounded that such force majeure event shall not just be based on a “mere incapacity to consume the contract energy or inability to meet the minimum charges or off-take.”
Force majeure entails the occurrence of unforeseeable circumstances that could prevent parties from fulfilling provisions of their contract.
With the novel coronavirus (COVID-19) pandemic, there had been proposals for generation companies or power suppliers to invoke force majeure under their power supply agreements, so the mandated capacity off-takes can be temporarily waived, and such may subsequently bring down rates for power consumers.
But in the grand scheme of things, it appears that state-owned PSALM has been the first one to pull the plug on that recommendation for the power industry during these trying times.
The company similarly indicated that it is extending payments and collections for 30 days from array of customers and contract counter-parties; but such shall only be for billings falling due within the prescribed duration of the enhanced community quarantine which is from March 15 to April 14 this year.
DMCI completes UP-PGH COVID-19 Referral Center
posted March 28, 2020 at 05:45 pm by Manila Standard
https://manilastandard.net/news/national/320599/dmci-completes-up-pgh-covid-19-referral-center.html
D.M. Consunji, Inc. (DMCI) has completed the retrofitting of two wards inside the University of the Philippines-Philippine General Hospital (UP-PGH) into a COVID-19 referral center.
The medical facility, which will house confirmed coronavirus disease (COVID-19) patients and high-risk persons under investigation (PUI), was formally turned over to UP-PGH yesterday.
To hasten the construction process and control the exposure of its workers, DMCI prefabricated offsite the partition walls, exhaust frames and stairs needed to isolate the COVID-19 facility from the rest of the hospital.
A dedicated team of DMCI workers handled the installation of the prefabricated materials.
The UP-PGH COVID-19 referral center is one of three government-designated coronavirus referral hospitals in the National Capital Region.
It has "negative pressure" rooms that suck in contaminated air, ventilators and separate access points for patients and medical staff.
DMCI workers rushed to complete the project in five days in response to PGH’s tight deadline.
Earlier this week, UP-PGH Director Dr. Gerardo “Gap” Legaspi said they needed a week to fully prepare the hospital for its role as a coronavirus referral center.
“Much of the credit goes to our workers who rose to the challenge of delivering this project on-time and in accordance with social distancing and sanitation protocols. We also commend the management of UP-PGH, Architect Dan Lichauco and Bloomberry Foundation for supporting our workers throughout the construction work,” said DMCI President and CEO Jorge A. Consunji.
https://manilastandard.net/news/national/320599/dmci-completes-up-pgh-covid-19-referral-center.html
D.M. Consunji, Inc. (DMCI) has completed the retrofitting of two wards inside the University of the Philippines-Philippine General Hospital (UP-PGH) into a COVID-19 referral center.
The medical facility, which will house confirmed coronavirus disease (COVID-19) patients and high-risk persons under investigation (PUI), was formally turned over to UP-PGH yesterday.
To hasten the construction process and control the exposure of its workers, DMCI prefabricated offsite the partition walls, exhaust frames and stairs needed to isolate the COVID-19 facility from the rest of the hospital.
A dedicated team of DMCI workers handled the installation of the prefabricated materials.
The UP-PGH COVID-19 referral center is one of three government-designated coronavirus referral hospitals in the National Capital Region.
It has "negative pressure" rooms that suck in contaminated air, ventilators and separate access points for patients and medical staff.
DMCI workers rushed to complete the project in five days in response to PGH’s tight deadline.
Earlier this week, UP-PGH Director Dr. Gerardo “Gap” Legaspi said they needed a week to fully prepare the hospital for its role as a coronavirus referral center.
“Much of the credit goes to our workers who rose to the challenge of delivering this project on-time and in accordance with social distancing and sanitation protocols. We also commend the management of UP-PGH, Architect Dan Lichauco and Bloomberry Foundation for supporting our workers throughout the construction work,” said DMCI President and CEO Jorge A. Consunji.
Listed energy firms go online for stockholders’ meetings
By: Ronnel W. Domingo / 05:15 AM March 28, 2020
https://business.inquirer.net/293614/listed-energy-firms-go-online-for-stockholders-meetings
Several energy firms have opted for remote or online attendance for their annual stockholders’ meeting scheduled up to May, while a few others have postponed theirs, in light of the new coronavirus disease (COVID-19) crisis.
In separate disclosures, Ayala-led AC Energy Philippines Inc. (ACEPH) and AC Enexor Inc. (ACEX) said their meetings—both set for April 20—would be held online, providing specialized websites through which shareholders can participate by means of remote communication and voting in absentia. In their annual meeting in 2019, before the Ayala group secured controlling stakes in both firms, they were known respectively as Phinma Energy Corp. and Phinma Petroleum and Geothermal Inc.
ACEPH and ACEX said an in-person meeting was scuttled in order “[t]o comply with recently issued regulations prohibiting mass gatherings, identifying specific persons authorized to go outside of residence, and/or requiring social distancing, to prevent the spread of COVID-19.”
Their sister firm Manila Water Co. Inc. made a similar announcement for a meeting on April 17.
Aboitiz Power Corp. also said their meeting would be streamed live, and stockholders may attend, participate and vote by remote communication or in absentia, using an online portal.
Petron Corp. of the San Miguel group said it “may conduct its [meeting] and have the voting through remote communication, in accordance with applicable law or regulation, in view of the coronavirus 2019 health concerns.”
Meanwhile, the Lopez group’s First Gen Corp. has postponed their May 13 meeting.
“The company intends to reschedule the said meeting on or about the week falling 90 days following the formal lifting of the quarantine, and provided the circumstances prevailing at that time will safely allow the holding of such a meeting,” First Gen said.
DMCI group’s Semirara Mining and Power Corp. has also postponed their May 4 meeting and, likewise, would still determine a new date.
Phoenix Petroleum Philippines Inc. also put off their March 27 schedule, citing the lockdown in Metro Manila as well as the Davao City government’s prohibition of meetings and gatherings. Phoenix “will announce and disclose the new date at the appropriate time.”
Manila Electric Co. and PXP Energy Corp.—both led by Manuel V. Pangilinan—have not made updates on the status of their meetings on May 26 and May 27, respectively.
https://business.inquirer.net/293614/listed-energy-firms-go-online-for-stockholders-meetings
Several energy firms have opted for remote or online attendance for their annual stockholders’ meeting scheduled up to May, while a few others have postponed theirs, in light of the new coronavirus disease (COVID-19) crisis.
In separate disclosures, Ayala-led AC Energy Philippines Inc. (ACEPH) and AC Enexor Inc. (ACEX) said their meetings—both set for April 20—would be held online, providing specialized websites through which shareholders can participate by means of remote communication and voting in absentia. In their annual meeting in 2019, before the Ayala group secured controlling stakes in both firms, they were known respectively as Phinma Energy Corp. and Phinma Petroleum and Geothermal Inc.
ACEPH and ACEX said an in-person meeting was scuttled in order “[t]o comply with recently issued regulations prohibiting mass gatherings, identifying specific persons authorized to go outside of residence, and/or requiring social distancing, to prevent the spread of COVID-19.”
Their sister firm Manila Water Co. Inc. made a similar announcement for a meeting on April 17.
Aboitiz Power Corp. also said their meeting would be streamed live, and stockholders may attend, participate and vote by remote communication or in absentia, using an online portal.
Petron Corp. of the San Miguel group said it “may conduct its [meeting] and have the voting through remote communication, in accordance with applicable law or regulation, in view of the coronavirus 2019 health concerns.”
Meanwhile, the Lopez group’s First Gen Corp. has postponed their May 13 meeting.
“The company intends to reschedule the said meeting on or about the week falling 90 days following the formal lifting of the quarantine, and provided the circumstances prevailing at that time will safely allow the holding of such a meeting,” First Gen said.
DMCI group’s Semirara Mining and Power Corp. has also postponed their May 4 meeting and, likewise, would still determine a new date.
Phoenix Petroleum Philippines Inc. also put off their March 27 schedule, citing the lockdown in Metro Manila as well as the Davao City government’s prohibition of meetings and gatherings. Phoenix “will announce and disclose the new date at the appropriate time.”
Manila Electric Co. and PXP Energy Corp.—both led by Manuel V. Pangilinan—have not made updates on the status of their meetings on May 26 and May 27, respectively.
Phoenix to supply fuel to power firm
Published March 28, 2020, 10:00 PM By Myrna M. Velasco
https://business.mb.com.ph/2020/03/28/phoenix-to-supply-fuel-to-power-firm/
The Uy-led Phoenix Petroleum Philippines Inc. has cornered a supply deal that entitles it to serve the fuel requirements of the power facilities of Global Business Power Corporation (GBP), a power firm majority owned by the Pangilinan-led Metro Pacific Investments Corporation.
In a statement to the media, Phoenix Petroleum said “GBP granted Phoenix a three-month exclusive contract to supply fuel to two of their power plants in Toledo City, Cebu.”
As emphasized by Phoenix Petroleum Chief Operating Officer Henry Albert Fadullon, the supply pact requires the monthly delivery of 1.1 million liters of fuel for the specified power plants of GBP.
The span of the fuel supply deliveries shall start from April and will conclude in June – which are basically the peak of the summer months.
Oil-fired power facilities are generally depended upon by the power system to meet peaking capacity needs – and these are critical assets to run as demand rises when temperatures ratchet up.
Fadullon said their oil firm is considerably a long-term partner now for GBP, having been its fuel supplier for the past five years already.
https://business.mb.com.ph/2020/03/28/phoenix-to-supply-fuel-to-power-firm/
The Uy-led Phoenix Petroleum Philippines Inc. has cornered a supply deal that entitles it to serve the fuel requirements of the power facilities of Global Business Power Corporation (GBP), a power firm majority owned by the Pangilinan-led Metro Pacific Investments Corporation.
In a statement to the media, Phoenix Petroleum said “GBP granted Phoenix a three-month exclusive contract to supply fuel to two of their power plants in Toledo City, Cebu.”
As emphasized by Phoenix Petroleum Chief Operating Officer Henry Albert Fadullon, the supply pact requires the monthly delivery of 1.1 million liters of fuel for the specified power plants of GBP.
The span of the fuel supply deliveries shall start from April and will conclude in June – which are basically the peak of the summer months.
Oil-fired power facilities are generally depended upon by the power system to meet peaking capacity needs – and these are critical assets to run as demand rises when temperatures ratchet up.
Fadullon said their oil firm is considerably a long-term partner now for GBP, having been its fuel supplier for the past five years already.
Aboitiz donates ₱100 M to ‘Project Ugnayan’
Published March 28, 2020, 10:00 PM
https://business.mb.com.ph/2020/03/28/aboitiz-donates-%e2%82%b1100-m-to-project-ugnayan/
The Aboitiz Group has donated ₱100 million to Project Ugnayan, a collaboration among local companies, as part of the group’s sustained efforts in as¬sisting communities affected by the current Coronavirus Disease 2019 (COVID-19) pandemic.
The ₱100-million donation is part of the ₱1.5 billion Project Ugnayan raised in cooperation with the Philippine Disaster Resilience Foundation (PDRF) to purchase ₱1,000 gift certificates for around one million poor families in Greater Manila.
Project Ugnayan is part of PDRF’s ongoing initiatives to help poor families who were economically displaced by the ongoing Luzon enhanced community quarantine.
The Aboitiz Group is a PDRFmember.
https://business.mb.com.ph/2020/03/28/aboitiz-donates-%e2%82%b1100-m-to-project-ugnayan/
The Aboitiz Group has donated ₱100 million to Project Ugnayan, a collaboration among local companies, as part of the group’s sustained efforts in as¬sisting communities affected by the current Coronavirus Disease 2019 (COVID-19) pandemic.
The ₱100-million donation is part of the ₱1.5 billion Project Ugnayan raised in cooperation with the Philippine Disaster Resilience Foundation (PDRF) to purchase ₱1,000 gift certificates for around one million poor families in Greater Manila.
Project Ugnayan is part of PDRF’s ongoing initiatives to help poor families who were economically displaced by the ongoing Luzon enhanced community quarantine.
The Aboitiz Group is a PDRFmember.
83 electric coops commit to extend payment period for customers
Published March 28, 2020, 10:00 PM By Myrna M. Velasco
https://business.mb.com.ph/2020/03/28/83-electric-coops-commit-to-extend-payment-period-for-customers/
At least 83 electric cooperatives (ECs) have positively responded to the directive of the
National Electrification Administration (NEA) for them to grant 30-day payment extension for the electric bills of their customers.
The electrification agency said that is based on its monitoring as of March 25 (Wednesday). The ECs basically took their cue from the deferred payment arrangements that their counterpart-private distribution utilities – including power utility giant Manila Electric Company (Meralco) – had already resorted to.
Relative to the mandate on extended payment for the EC customers, NEA Administrator Edgardo Masongsong earlier is¬sued Memorandum No. 2020-011, which essentially endorsed an advisory of the Department of Energy (DOE) on stretching the payment arrangement on billings of power companies.
“Implementing a 30-day payment extension to electricity con¬sumers will help ease their financial burden, especially those impacted by the enhanced community quarantines due to the coronavirus pandemic,” Masongsong said.
The bills to be covered are those falling due from March 15 to April 14, 2020, a span which is parallel to the government-enforced community quarantine to contain the spread of the lethal novel corona¬virus (Covid-19).
The NEA chief further noted that “while a significant number of electric cooperatives already complied with the directive – most are in Luzon and Visayas – other power co-ops simply released public announcements on the waiver of surcharges for late payments and suspension of disconnection activities.”
The agency expounded that the bill payment extension is “in line with the government’s declaration of a state of calamity throughout the country for six months, and the implementation of the enhanced community quarantine over the entire island of Luzon due to the continuing spread of COVID-19.”
Parallel to that order, NEA Deputy Administrator for Legal Services Atty Rossan Rosero-Lee similarly announced that all ECs and litigants are given “a 30-day extension to file their petitions and appeals, complaints, motions, pleadings and other submissions to the Administrative Committee (of NEA).” That shall cover filings due from March 15 to April 15 this year.
https://business.mb.com.ph/2020/03/28/83-electric-coops-commit-to-extend-payment-period-for-customers/
At least 83 electric cooperatives (ECs) have positively responded to the directive of the
National Electrification Administration (NEA) for them to grant 30-day payment extension for the electric bills of their customers.
The electrification agency said that is based on its monitoring as of March 25 (Wednesday). The ECs basically took their cue from the deferred payment arrangements that their counterpart-private distribution utilities – including power utility giant Manila Electric Company (Meralco) – had already resorted to.
Relative to the mandate on extended payment for the EC customers, NEA Administrator Edgardo Masongsong earlier is¬sued Memorandum No. 2020-011, which essentially endorsed an advisory of the Department of Energy (DOE) on stretching the payment arrangement on billings of power companies.
“Implementing a 30-day payment extension to electricity con¬sumers will help ease their financial burden, especially those impacted by the enhanced community quarantines due to the coronavirus pandemic,” Masongsong said.
The bills to be covered are those falling due from March 15 to April 14, 2020, a span which is parallel to the government-enforced community quarantine to contain the spread of the lethal novel corona¬virus (Covid-19).
The NEA chief further noted that “while a significant number of electric cooperatives already complied with the directive – most are in Luzon and Visayas – other power co-ops simply released public announcements on the waiver of surcharges for late payments and suspension of disconnection activities.”
The agency expounded that the bill payment extension is “in line with the government’s declaration of a state of calamity throughout the country for six months, and the implementation of the enhanced community quarantine over the entire island of Luzon due to the continuing spread of COVID-19.”
Parallel to that order, NEA Deputy Administrator for Legal Services Atty Rossan Rosero-Lee similarly announced that all ECs and litigants are given “a 30-day extension to file their petitions and appeals, complaints, motions, pleadings and other submissions to the Administrative Committee (of NEA).” That shall cover filings due from March 15 to April 15 this year.
Meralco unit stops work on power projects
Published March 27, 2020, 10:00 PM By Myrna M. Velasco
https://business.mb.com.ph/2020/03/27/meralco-unit-stops-work-on-power-projects/
The power generation investment unit of Manila Electric Company (Meralco) has temporarily stopped “site activities” on the various power projects that it has been advancing to construction phases, including its solar installation in Bulacan province.
Meralco PowerGen (MGen), in a statement to the media, has indicated that among its projects affected are the proposed coal-fired power plant of Atimonan One Energy, Inc. (A1E) in Quezon province; and the Power Source First Bulacan Solar Inc. in San Miguel, Bulacan.
MGen said site activities of its project companies have been suspended Wednesday (March 18), citing mainly the two power plant ventures.
For the San Buenaventura Power Ltd. Co. (SBPL) facility, which is its joint venture with Thai firm EGCO, the company said “a skeleton workforce continues to operate the 500MW power plant in Mauban, Quezon.” It feeds its electricity generation into the main power grid of Luzon.
MGen President and Chief Executive Officer Rogelio L. Singson noted that as the company recognized the seriousness of the health cataclysm posed by the novel corona virus (COVID-19), “we at MGen put utmost importance to the health and safety of all our employees, partners and stakeholders.”
Amid the 30-day community quarantine enforced for Metro Manila and the rest of Luzon, MGen spotlighted the need “to ensure availability and delivery of stable and reliable supply to electricity consumers.”
Further, the company announced that even its subsidiaries “banned all non-essential travels to and from the power plant sites in Bulacan and Quezon.”
Singson stressed “we acknowledge the challenge we are facing now, and we are committed to support the government and the private sector in fighting this pan¬demic.”
The Meralco firm nevertheless guaranteed that it has a business continuity plan (BCP) and other key safety measures “to ensure that despite halt on site activities, all mission-critical activities will continue.”
In particular, the company indicated that employees at its main office in Pasig City had been instructed to work from home (WFH), which is the instituted arrangement now for most businesses and government offices in the country.
Singson also previously told media that for its solar projects, delivery of key materials (such as solar panels) had encountered delays because of the wallop of the coronavirus that started in China in January.
https://business.mb.com.ph/2020/03/27/meralco-unit-stops-work-on-power-projects/
The power generation investment unit of Manila Electric Company (Meralco) has temporarily stopped “site activities” on the various power projects that it has been advancing to construction phases, including its solar installation in Bulacan province.
Meralco PowerGen (MGen), in a statement to the media, has indicated that among its projects affected are the proposed coal-fired power plant of Atimonan One Energy, Inc. (A1E) in Quezon province; and the Power Source First Bulacan Solar Inc. in San Miguel, Bulacan.
MGen said site activities of its project companies have been suspended Wednesday (March 18), citing mainly the two power plant ventures.
For the San Buenaventura Power Ltd. Co. (SBPL) facility, which is its joint venture with Thai firm EGCO, the company said “a skeleton workforce continues to operate the 500MW power plant in Mauban, Quezon.” It feeds its electricity generation into the main power grid of Luzon.
MGen President and Chief Executive Officer Rogelio L. Singson noted that as the company recognized the seriousness of the health cataclysm posed by the novel corona virus (COVID-19), “we at MGen put utmost importance to the health and safety of all our employees, partners and stakeholders.”
Amid the 30-day community quarantine enforced for Metro Manila and the rest of Luzon, MGen spotlighted the need “to ensure availability and delivery of stable and reliable supply to electricity consumers.”
Further, the company announced that even its subsidiaries “banned all non-essential travels to and from the power plant sites in Bulacan and Quezon.”
Singson stressed “we acknowledge the challenge we are facing now, and we are committed to support the government and the private sector in fighting this pan¬demic.”
The Meralco firm nevertheless guaranteed that it has a business continuity plan (BCP) and other key safety measures “to ensure that despite halt on site activities, all mission-critical activities will continue.”
In particular, the company indicated that employees at its main office in Pasig City had been instructed to work from home (WFH), which is the instituted arrangement now for most businesses and government offices in the country.
Singson also previously told media that for its solar projects, delivery of key materials (such as solar panels) had encountered delays because of the wallop of the coronavirus that started in China in January.
PSALM defers bills payment
March 27, 2020 | 7:09 pm
https://www.bworldonline.com/psalm-defers-bills-payment/
THE Power Sector Assets and Liabilities Management Corp. (PSALM) has given entities in the power sector more time to pay their bills as it announced on Friday a due date of up to 30 days from the end of the Luzon-wide lockdown period on April 14.
Those covered by the deferred payment are distribution utilities, independent power producer (IPP) administrators and collecting agencies of the universal charge (UC).
The move is done in compliance with the advisories earlier posted by the Department of Energy and the Energy Regulatory Commission, both of which called for the deferment of payments within the energy sector to ensure the unhampered supply of electricity during the enhanced community quarantine from March 15 to April 14 amid the new coronavirus disease 2019 (COVID-19) pandemic.
The state-owned firm tasked to privatize the government’s power assets said the extension of payments is done without imposing any interest and penalties.
Yet, it noted that billings falling before March 15 should follow the corresponding due dates, otherwise, a failure to pay will be met with interest and penalties.
PSALM said that it would not allow the suspension or lowering of the minimum energy off-take or the so-called minimum charges by distribution utilities unless there would be a force majeure.
“The contracts require that the force majeure event must render it impossible for a party to fulfill its obligation, such as when its operations are totally paralyzed to receive the supply of energy, and not just a mere incapacity to consume the Contract Energy or inability to meet the Minimum Charges or off-take,” it said.
PSALM is also deferring the prompt payment discount for distribution utilities remitting their payments until April 29.
PSALM will be extending both capacity and energy payments of IPP administrators provided that IPPs would grant them the same extension period for the remittance of their payments to them.
“If the IPPs refuse to give an extension to PSALM, then PSALM is constrained not to give an extension to the IPPAs,” it added.
Similarly, PSALM’s obligations to the beneficiaries of universal charges are also extended by the same number of days of extension it granted the UC collecting entities.
This includes universal charges for missionary electrification, environmental charge for watershed rehabilitation and management, and stranded debts.
The firm is postponing the payments of its generating facilities to its fuel suppliers up to 30 days from April 15, as well.
PSALM said it was abiding by the DoE advisory, which clarified that only disputes regarding the settlement of any of the accounts payable to the agency falling within the quarantine period will be put on hold.
PSALM reminded distribution utilities and UC collecting entities they should remit any collections they could make within their original deadlines without awaiting the end of the extension period. This is to lessen the impact of the extension of the payments to power generation companies. — Adam J. Ang
https://www.bworldonline.com/psalm-defers-bills-payment/
THE Power Sector Assets and Liabilities Management Corp. (PSALM) has given entities in the power sector more time to pay their bills as it announced on Friday a due date of up to 30 days from the end of the Luzon-wide lockdown period on April 14.
Those covered by the deferred payment are distribution utilities, independent power producer (IPP) administrators and collecting agencies of the universal charge (UC).
The move is done in compliance with the advisories earlier posted by the Department of Energy and the Energy Regulatory Commission, both of which called for the deferment of payments within the energy sector to ensure the unhampered supply of electricity during the enhanced community quarantine from March 15 to April 14 amid the new coronavirus disease 2019 (COVID-19) pandemic.
The state-owned firm tasked to privatize the government’s power assets said the extension of payments is done without imposing any interest and penalties.
Yet, it noted that billings falling before March 15 should follow the corresponding due dates, otherwise, a failure to pay will be met with interest and penalties.
PSALM said that it would not allow the suspension or lowering of the minimum energy off-take or the so-called minimum charges by distribution utilities unless there would be a force majeure.
“The contracts require that the force majeure event must render it impossible for a party to fulfill its obligation, such as when its operations are totally paralyzed to receive the supply of energy, and not just a mere incapacity to consume the Contract Energy or inability to meet the Minimum Charges or off-take,” it said.
PSALM is also deferring the prompt payment discount for distribution utilities remitting their payments until April 29.
PSALM will be extending both capacity and energy payments of IPP administrators provided that IPPs would grant them the same extension period for the remittance of their payments to them.
“If the IPPs refuse to give an extension to PSALM, then PSALM is constrained not to give an extension to the IPPAs,” it added.
Similarly, PSALM’s obligations to the beneficiaries of universal charges are also extended by the same number of days of extension it granted the UC collecting entities.
This includes universal charges for missionary electrification, environmental charge for watershed rehabilitation and management, and stranded debts.
The firm is postponing the payments of its generating facilities to its fuel suppliers up to 30 days from April 15, as well.
PSALM said it was abiding by the DoE advisory, which clarified that only disputes regarding the settlement of any of the accounts payable to the agency falling within the quarantine period will be put on hold.
PSALM reminded distribution utilities and UC collecting entities they should remit any collections they could make within their original deadlines without awaiting the end of the extension period. This is to lessen the impact of the extension of the payments to power generation companies. — Adam J. Ang
No plant shutdown despite falling power demand, says DoE
March 27, 2020 | 12:06 am
https://www.bworldonline.com/no-plant-shutdown-despite-falling-power-demand-says-doe/
POWER generation companies are not allowed to shut down their operations despite falling energy demand amid the Luzon-wide lockdown, the Department of Energy (DoE) said on Thursday.
In an advisory dated March 23, the department informed of reports from trading participants at the Wholesale Electricity Spot Market (WESM) that they wish to halt the operations of their generating units for economic reasons.
“A decline in power demand does not mean that operations could and should be put to rest,” DoE Secretary Alfonso G. Cusi said in a separate statement on Thursday.
“In fact, as we battle the COVID-19 [coronavirus disease 2019] crisis, now is the time for us to double our efforts to ensure that we can provide sufficient and continuous electricity services to each and every household, as well as across key industries of our country,” he added.
The DoE told the market participants that they should continue submitting their offers to the WESM.
Specifically, it told gencos “to exercise prudency in the submission of their offers and ensure utmost compliance to the instructions of the SO [system operator] to maintain market integrity and power system security.”
Citing the Independent Electricity Market Operator of the Philippines (IEMOP), the DoE noted a “significant” decline in electricity demand in the Luzon and Visayas grids since the implementation of the enhanced quarantine period.
Last Sunday, Robinson P. Descanzo, IEMOP chief operating officer and head of trading operations, told BusinessWorld in a text message that “the market is still continuous in its operations.”
He added that the power demand in Luzon is “significantly low compared to summer months” due to the lockdown.
“Unless the market is suspended pursuant to existing rules and regulations, the operation of the WESM shall continue and the WESM Rules and its Market Manuals must continue to govern,” the department said in the advisory.
As of March 25, electricity price in the WESM fell by P209 to P1,692 per megawatt-hour.
Meanwhile, the National Electrification Administration (NEA) said on Thursday that around 83 electric cooperatives had announced a 30-day extension for electricity consumers to settle their power bills amid the public health crisis.
NEA Administrator Edgardo R. Masongsong said the payment extension would help ease consumers’ financial burden, especially those hit by the enhanced community quarantine amid the coronavirus pandemic.
“My appeal to the electric cooperatives is to comply with the advisories of both the Department of Energy and the NEA since they also get reprieve from paying their obligations to their power suppliers,” he said in a statement.
Last week, NEA issued an advisory to the 121 electric cooperatives, as the infectious COVID-19 is expected to take a financial toll on many Filipino families and industries nationwide. — Adam J. Ang
https://www.bworldonline.com/no-plant-shutdown-despite-falling-power-demand-says-doe/
POWER generation companies are not allowed to shut down their operations despite falling energy demand amid the Luzon-wide lockdown, the Department of Energy (DoE) said on Thursday.
In an advisory dated March 23, the department informed of reports from trading participants at the Wholesale Electricity Spot Market (WESM) that they wish to halt the operations of their generating units for economic reasons.
“A decline in power demand does not mean that operations could and should be put to rest,” DoE Secretary Alfonso G. Cusi said in a separate statement on Thursday.
“In fact, as we battle the COVID-19 [coronavirus disease 2019] crisis, now is the time for us to double our efforts to ensure that we can provide sufficient and continuous electricity services to each and every household, as well as across key industries of our country,” he added.
The DoE told the market participants that they should continue submitting their offers to the WESM.
Specifically, it told gencos “to exercise prudency in the submission of their offers and ensure utmost compliance to the instructions of the SO [system operator] to maintain market integrity and power system security.”
Citing the Independent Electricity Market Operator of the Philippines (IEMOP), the DoE noted a “significant” decline in electricity demand in the Luzon and Visayas grids since the implementation of the enhanced quarantine period.
Last Sunday, Robinson P. Descanzo, IEMOP chief operating officer and head of trading operations, told BusinessWorld in a text message that “the market is still continuous in its operations.”
He added that the power demand in Luzon is “significantly low compared to summer months” due to the lockdown.
“Unless the market is suspended pursuant to existing rules and regulations, the operation of the WESM shall continue and the WESM Rules and its Market Manuals must continue to govern,” the department said in the advisory.
As of March 25, electricity price in the WESM fell by P209 to P1,692 per megawatt-hour.
Meanwhile, the National Electrification Administration (NEA) said on Thursday that around 83 electric cooperatives had announced a 30-day extension for electricity consumers to settle their power bills amid the public health crisis.
NEA Administrator Edgardo R. Masongsong said the payment extension would help ease consumers’ financial burden, especially those hit by the enhanced community quarantine amid the coronavirus pandemic.
“My appeal to the electric cooperatives is to comply with the advisories of both the Department of Energy and the NEA since they also get reprieve from paying their obligations to their power suppliers,” he said in a statement.
Last week, NEA issued an advisory to the 121 electric cooperatives, as the infectious COVID-19 is expected to take a financial toll on many Filipino families and industries nationwide. — Adam J. Ang
AC Energy, partner to use GE wind turbines in Vietnam
March 26, 2020 | 12:06 am
https://www.bworldonline.com/ac-energy-partner-to-use-ge-wind-turbines-in-vietnam/
AC Energy, Inc. and its partner The Blue Circle Pte. Ltd. have ordered eight of the new 5 megawatt (MW) wind turbines from a unit of General Electric Co. (GE) to power the second phase of the firms’ $80-million wind farm in Vietnam.
The 158-meter Cypress platform wind turbines, which have a total unit capacity of 40 MW, will carry the largest rotor diameter for an onshore project in Asia and will be the first to transport blades in two pieces before assembly on site.
“This technology is a game-changer for onshore sites as it will allow larger capacity machines, lowering our cost of energy and enhancing competitiveness of wind energy,” The Blue Circle Chief Construction Officer Hervé Grillot said in a statement.
Last year, the two firms signed an agreement to construct the first phase of the renewable energy project, which was initially expected to be done by the first half of 2020. AC Energy held more than 62% of the economic ownership, including a 50% direct voting share in this phase.
AC Energy through its wholly owned subsidiary, AC Energy Vietnam Investments 2 Pte. Ltd., will have a 50% voting stake in this second phase of the project, while GE Vietnam will be providing a full service agreement for up to 15 years and The Blue Circle will manage operations through an asset management services contract.
The Mui Ne project is located in Binh Thuan province on the southeastern coast of Vietnam. It has a total expansion potential of up to 170 MW, and will be funded by debt and equity. The project is also set to qualify for the wind feed-in-tariff of 8.5 US cents per kilowatt-hour.
The Blue Circle has secured the land and grid connection for the project’s 40 MW second phase, despite the suspension of master plan approvals in Vietnam.
“The Binh Thuan province is a very complex and challenging environment to implement a wind power project,” The Blue Circle Chief Executive Officer Olivier Duguet said.
“We are now extending the Mui Ne Project with a second 40MW phase to be commissioned in 2021,” he added.
In 2018, the Ayala-led company via its subsidiary, AC Energy International Holdings Pte. Ltd., acquired 25% ownership of The Blue Circle, including co-investment rights in the latter’s projects.
“We have strongly pushed for the adoption of new technologies and best practices to grow our assets in renewables with the continuous support to pursue innovation from partners like The Blue Circle,” AC Energy International Chief Operating Officer Patrice R. Clausse said.
Recently, AC Energy agreed to transfer its stake in renewable energy projects abroad to its Philippine-listed unit, AC Energy Philippines, Inc., in exchange for more shares in the latter. — Adam J. Ang
https://www.bworldonline.com/ac-energy-partner-to-use-ge-wind-turbines-in-vietnam/
AC Energy, Inc. and its partner The Blue Circle Pte. Ltd. have ordered eight of the new 5 megawatt (MW) wind turbines from a unit of General Electric Co. (GE) to power the second phase of the firms’ $80-million wind farm in Vietnam.
The 158-meter Cypress platform wind turbines, which have a total unit capacity of 40 MW, will carry the largest rotor diameter for an onshore project in Asia and will be the first to transport blades in two pieces before assembly on site.
“This technology is a game-changer for onshore sites as it will allow larger capacity machines, lowering our cost of energy and enhancing competitiveness of wind energy,” The Blue Circle Chief Construction Officer Hervé Grillot said in a statement.
Last year, the two firms signed an agreement to construct the first phase of the renewable energy project, which was initially expected to be done by the first half of 2020. AC Energy held more than 62% of the economic ownership, including a 50% direct voting share in this phase.
AC Energy through its wholly owned subsidiary, AC Energy Vietnam Investments 2 Pte. Ltd., will have a 50% voting stake in this second phase of the project, while GE Vietnam will be providing a full service agreement for up to 15 years and The Blue Circle will manage operations through an asset management services contract.
The Mui Ne project is located in Binh Thuan province on the southeastern coast of Vietnam. It has a total expansion potential of up to 170 MW, and will be funded by debt and equity. The project is also set to qualify for the wind feed-in-tariff of 8.5 US cents per kilowatt-hour.
The Blue Circle has secured the land and grid connection for the project’s 40 MW second phase, despite the suspension of master plan approvals in Vietnam.
“The Binh Thuan province is a very complex and challenging environment to implement a wind power project,” The Blue Circle Chief Executive Officer Olivier Duguet said.
“We are now extending the Mui Ne Project with a second 40MW phase to be commissioned in 2021,” he added.
In 2018, the Ayala-led company via its subsidiary, AC Energy International Holdings Pte. Ltd., acquired 25% ownership of The Blue Circle, including co-investment rights in the latter’s projects.
“We have strongly pushed for the adoption of new technologies and best practices to grow our assets in renewables with the continuous support to pursue innovation from partners like The Blue Circle,” AC Energy International Chief Operating Officer Patrice R. Clausse said.
Recently, AC Energy agreed to transfer its stake in renewable energy projects abroad to its Philippine-listed unit, AC Energy Philippines, Inc., in exchange for more shares in the latter. — Adam J. Ang
NGCP to consumers: conserve power
March 26, 2020 | 12:03 am
https://www.bworldonline.com/ngcp-to-consumers-conserve-power/
WHILE THERE is a continuous supply of electricity, the National Grid Corporation of the Philippines (NGCP) urged consumers to conserve energy given the uncertain impact of the new coronavirus disease 2019 (COVID-19) pandemic.
On Wednesday, the privately owned grid operator reported that it expected the peak demand for the day to be around 6,900 megawatts (MW), which is “below the projected peak.”
“Sa kasalukuyan, may namo-monitor tayong malaking decrease, lalo na sa Luzon, nung konsumo, ‘yung expected consumption natin ng kuryente,” NGCP Spokesperson Cynthia P. Alabanza said in an interview with DZBB on Wednesday morning.
(At present, we are seeing a big decrease, especially in Luzon, in the expected consumption of electricity.)
“Nasa 12,181 MW ’yung kakayahan ng grid na mag-supply ng kuryente pero ang inaasahan nating peak demand o ’yung pinaka-mataas na konsumo for today nasa 6,900 lang, so malaking-malaki ang diperensya,” she added.
(The grid is capable of supplying 12,181 MW but our expected peak demand today is only 6,900 [MW], so there is a big difference.)
The grid operator told consumers to limit their energy usage amid the falling demand for power. — Adam J. Ang
https://www.bworldonline.com/ngcp-to-consumers-conserve-power/
WHILE THERE is a continuous supply of electricity, the National Grid Corporation of the Philippines (NGCP) urged consumers to conserve energy given the uncertain impact of the new coronavirus disease 2019 (COVID-19) pandemic.
On Wednesday, the privately owned grid operator reported that it expected the peak demand for the day to be around 6,900 megawatts (MW), which is “below the projected peak.”
“Sa kasalukuyan, may namo-monitor tayong malaking decrease, lalo na sa Luzon, nung konsumo, ‘yung expected consumption natin ng kuryente,” NGCP Spokesperson Cynthia P. Alabanza said in an interview with DZBB on Wednesday morning.
(At present, we are seeing a big decrease, especially in Luzon, in the expected consumption of electricity.)
“Nasa 12,181 MW ’yung kakayahan ng grid na mag-supply ng kuryente pero ang inaasahan nating peak demand o ’yung pinaka-mataas na konsumo for today nasa 6,900 lang, so malaking-malaki ang diperensya,” she added.
(The grid is capable of supplying 12,181 MW but our expected peak demand today is only 6,900 [MW], so there is a big difference.)
The grid operator told consumers to limit their energy usage amid the falling demand for power. — Adam J. Ang
Alsons earnings rise by 67% to ₱938 M
Published March 26, 2020, 10:00 PM By Myrna M. Velasco
https://business.mb.com.ph/2020/03/26/alsons-earnings-rise-by-67-to-%e2%82%b1938-m/
With hefty contribution from power generating fleets that just reached commercial operations, the full year consolidated net income of Alsons Consolidated Resources Inc. (ACR) of the Alcantara group has expanded 67 percent to ₱938 million last year as against a leaner ₱563 million in 2018.
In terms of earnings attributable to the parent firm, this had also grown significantly to ₱148 million in 2018 vis-Ã -vis the previous year’s ₱94 million.
Revenue-wise, the company reported a slight growth to ₱6.8 billion from the 2018 level of ₱6.66 billion.
“As in previous years, the key revenue and income drivers for the company continues to be the 210-megawatt Sarangani Energy Corporation (SEC) coal-fired baseload power plant located in Maasim, Sarangani province,” the company noted.
The second generating unit of the SEC plant at 105MW capacity reached full commercial operations in October last year; while the first unit started delivering power in 2016 and had also been contributing largely to top and bottom lines of the Alcantara firm since then.
As emphasized, the Sarangani coal plant caters to the electricity needs of around 6.0 million people within its host-province; then to neighboring General Santos City and other parts of Mindanao.
After that major venture for the Alcantara group, it is advancing next its 105MW San Ramon coal-fired power plant project in Zamboanga City; and the 15-MW Siguil run-of-river hydropower venture in Sarangani.
Beyond the thermal plant developments that it had preoccupied itself with in recent years, the Alcantara group indicated that the next wave of power plant installations shall be leaning on cleaner technologies – primarily hydro as well as prospective solar developments.
The Alsons Power Group currently counts aggregate capacity of 468 megawatts, noting that such portfolio serves over 8.0 million people in 14 cities and 11 provinces that roped in the key urban centers of Cagayan de Oro, General Santos. Iligan and Zamboanga.
For the company’s Siguil hydropower venture, this is due for commercial operations in 2022; while the San Ramon coal-fired power project in Zamboanga is targeted on stream by 2023.
On top of the energy investments of the Alcantara group, the firm is also expecting better financial results in the coming years upon the completion of its 26-hectare Azuela Cove township project that is under construction in Davao City, its joint venture with Ayala Land.
https://business.mb.com.ph/2020/03/26/alsons-earnings-rise-by-67-to-%e2%82%b1938-m/
With hefty contribution from power generating fleets that just reached commercial operations, the full year consolidated net income of Alsons Consolidated Resources Inc. (ACR) of the Alcantara group has expanded 67 percent to ₱938 million last year as against a leaner ₱563 million in 2018.
In terms of earnings attributable to the parent firm, this had also grown significantly to ₱148 million in 2018 vis-Ã -vis the previous year’s ₱94 million.
Revenue-wise, the company reported a slight growth to ₱6.8 billion from the 2018 level of ₱6.66 billion.
“As in previous years, the key revenue and income drivers for the company continues to be the 210-megawatt Sarangani Energy Corporation (SEC) coal-fired baseload power plant located in Maasim, Sarangani province,” the company noted.
The second generating unit of the SEC plant at 105MW capacity reached full commercial operations in October last year; while the first unit started delivering power in 2016 and had also been contributing largely to top and bottom lines of the Alcantara firm since then.
As emphasized, the Sarangani coal plant caters to the electricity needs of around 6.0 million people within its host-province; then to neighboring General Santos City and other parts of Mindanao.
After that major venture for the Alcantara group, it is advancing next its 105MW San Ramon coal-fired power plant project in Zamboanga City; and the 15-MW Siguil run-of-river hydropower venture in Sarangani.
Beyond the thermal plant developments that it had preoccupied itself with in recent years, the Alcantara group indicated that the next wave of power plant installations shall be leaning on cleaner technologies – primarily hydro as well as prospective solar developments.
The Alsons Power Group currently counts aggregate capacity of 468 megawatts, noting that such portfolio serves over 8.0 million people in 14 cities and 11 provinces that roped in the key urban centers of Cagayan de Oro, General Santos. Iligan and Zamboanga.
For the company’s Siguil hydropower venture, this is due for commercial operations in 2022; while the San Ramon coal-fired power project in Zamboanga is targeted on stream by 2023.
On top of the energy investments of the Alcantara group, the firm is also expecting better financial results in the coming years upon the completion of its 26-hectare Azuela Cove township project that is under construction in Davao City, its joint venture with Ayala Land.
WESM remains in operation
Published March 25, 2020, 10:00 PM By Myrna M. Velasco
https://business.mb.com.ph/2020/03/25/wesm-remains-in-operation/
Despite ‘state of calamity’ declaration by the Office of the President, the Energy Regulatory Commission (ERC) has announced that it will not be suspending the operations of the country’s Wholesale Electricity Spot Market.
Questions were raised last week relative to the propounded suspension of the spot market given that staffers manning it may also be compromised when it comes to their exposure to the lethal novel coronavirus.
But the ERC ruled that the WESM “will continue to operate amidst the government’s declaration of a state of public health emergency,” with the regulatory body noting that such “ensures that the distribution utilities will have a stand-by source of power supply and provide con¬tinuous electricity.”
In previous instances, a declaration of state of calamity calls for the automatic suspension of the WESM’s operations – although on those incidents, these were mostly triggered by natural calamities; and it is the first time that it is anchored on a public health crisis.
ERC Chairperson Agnes T. Devanadera stressed that “the Com¬mission has been closely monitoring the activities in the WESM and there is no breach in the criteria or parameters that would warrant the declaration of a market suspension at this time.”
The ERC further indicated that both the market operator (or the Independent Electricity Market Operator of the Philippines) and the system operator National Grid Corporation of the Philippines set out assurance “of their abilities to continue their operations amid the nationwide community quarantine.”
The regulatory body said both firms submitted their respective business continuity plans (BCPs) relating to the enforced month-long enhanced community quarantine.
The market operator and its governing body Philippine Electricity Market Corporation (PEMC), as similarly noted, are currently at their ‘business as usual’ scenario, despite the prevailing conditions in the country.
https://business.mb.com.ph/2020/03/25/wesm-remains-in-operation/
Despite ‘state of calamity’ declaration by the Office of the President, the Energy Regulatory Commission (ERC) has announced that it will not be suspending the operations of the country’s Wholesale Electricity Spot Market.
Questions were raised last week relative to the propounded suspension of the spot market given that staffers manning it may also be compromised when it comes to their exposure to the lethal novel coronavirus.
But the ERC ruled that the WESM “will continue to operate amidst the government’s declaration of a state of public health emergency,” with the regulatory body noting that such “ensures that the distribution utilities will have a stand-by source of power supply and provide con¬tinuous electricity.”
In previous instances, a declaration of state of calamity calls for the automatic suspension of the WESM’s operations – although on those incidents, these were mostly triggered by natural calamities; and it is the first time that it is anchored on a public health crisis.
ERC Chairperson Agnes T. Devanadera stressed that “the Com¬mission has been closely monitoring the activities in the WESM and there is no breach in the criteria or parameters that would warrant the declaration of a market suspension at this time.”
The ERC further indicated that both the market operator (or the Independent Electricity Market Operator of the Philippines) and the system operator National Grid Corporation of the Philippines set out assurance “of their abilities to continue their operations amid the nationwide community quarantine.”
The regulatory body said both firms submitted their respective business continuity plans (BCPs) relating to the enforced month-long enhanced community quarantine.
The market operator and its governing body Philippine Electricity Market Corporation (PEMC), as similarly noted, are currently at their ‘business as usual’ scenario, despite the prevailing conditions in the country.
AC Energy completes stake purchase of Negros solar farms
March 25, 2020 | 12:01 am
https://www.bworldonline.com/ac-energy-completes-stake-purchase-of-negros-solar-farms/
AYALA-LED AC Energy Philippines, Inc. (ACEPH) on Tuesday announced that it has finished its purchase of controlling stakes in two Negros Occidental solar farms within its target date.
In November, the Ayala energy unit signed a share purchase agreement to acquire shares of Macquarie Infrastructure Holdings (Philippines) Pte. Ltd., Langoer Investments Holding B.V., and the Government Service Insurance System in both San Carlos Energy, Inc. (Sacasol) and Negros Island Solar Power, Inc. (Islasol).
AC Energy Philippines’s wholly-owned subsidiary Giga Ace 2, Inc. paid P2.981 billion to acquire the shares of the investors in Sacasol, an increase by P200 million from the earlier reported purchase price of P2.772 billion.
It acquired 6,996 common B shares and 36,246 redeemable B shares in the 45-megawatt solar farm, which operates under the feed-in-tariff regime of the Renewable Energy Act.
Meanwhile, Giga Ace 3, Inc., ACEPH’s other subsidiary, also bought the shares of the same group of investors in the 80 MW Islasol for P1.629 billion.
The share purchases were in part of the listed firm’s target of achieving at least 2 gigawatts of attributable renewable energy capacity by 2025.
The deals were expected to close on or before March 31.
On Tuesday, shares in ACEPH went up 1.32% to close at P1.53 apiece. — Adam J. Ang
https://www.bworldonline.com/ac-energy-completes-stake-purchase-of-negros-solar-farms/
AYALA-LED AC Energy Philippines, Inc. (ACEPH) on Tuesday announced that it has finished its purchase of controlling stakes in two Negros Occidental solar farms within its target date.
In November, the Ayala energy unit signed a share purchase agreement to acquire shares of Macquarie Infrastructure Holdings (Philippines) Pte. Ltd., Langoer Investments Holding B.V., and the Government Service Insurance System in both San Carlos Energy, Inc. (Sacasol) and Negros Island Solar Power, Inc. (Islasol).
AC Energy Philippines’s wholly-owned subsidiary Giga Ace 2, Inc. paid P2.981 billion to acquire the shares of the investors in Sacasol, an increase by P200 million from the earlier reported purchase price of P2.772 billion.
It acquired 6,996 common B shares and 36,246 redeemable B shares in the 45-megawatt solar farm, which operates under the feed-in-tariff regime of the Renewable Energy Act.
Meanwhile, Giga Ace 3, Inc., ACEPH’s other subsidiary, also bought the shares of the same group of investors in the 80 MW Islasol for P1.629 billion.
The share purchases were in part of the listed firm’s target of achieving at least 2 gigawatts of attributable renewable energy capacity by 2025.
The deals were expected to close on or before March 31.
On Tuesday, shares in ACEPH went up 1.32% to close at P1.53 apiece. — Adam J. Ang
Wednesday, March 25, 2020
AC Energy completes stake purchase of Negros solar farms
March 25, 2020 | 12:01 am
https://www.bworldonline.com/ac-energy-completes-stake-purchase-of-negros-solar-farms/
AYALA-LED AC Energy Philippines, Inc. (ACEPH) on Tuesday announced that it has finished its purchase of controlling stakes in two Negros Occidental solar farms within its target date.
In November, the Ayala energy unit signed a share purchase agreement to acquire shares of Macquarie Infrastructure Holdings (Philippines) Pte. Ltd., Langoer Investments Holding B.V., and the Government Service Insurance System in both San Carlos Energy, Inc. (Sacasol) and Negros Island Solar Power, Inc. (Islasol).
AC Energy Philippines’s wholly-owned subsidiary Giga Ace 2, Inc. paid P2.981 billion to acquire the shares of the investors in Sacasol, an increase by P200 million from the earlier reported purchase price of P2.772 billion.
It acquired 6,996 common B shares and 36,246 redeemable B shares in the 45-megawatt solar farm, which operates under the feed-in-tariff regime of the Renewable Energy Act.
Meanwhile, Giga Ace 3, Inc., ACEPH’s other subsidiary, also bought the shares of the same group of investors in the 80 MW Islasol for P1.629 billion.
The share purchases were in part of the listed firm’s target of achieving at least 2 gigawatts of attributable renewable energy capacity by 2025.
https://www.bworldonline.com/ac-energy-completes-stake-purchase-of-negros-solar-farms/
AYALA-LED AC Energy Philippines, Inc. (ACEPH) on Tuesday announced that it has finished its purchase of controlling stakes in two Negros Occidental solar farms within its target date.
In November, the Ayala energy unit signed a share purchase agreement to acquire shares of Macquarie Infrastructure Holdings (Philippines) Pte. Ltd., Langoer Investments Holding B.V., and the Government Service Insurance System in both San Carlos Energy, Inc. (Sacasol) and Negros Island Solar Power, Inc. (Islasol).
AC Energy Philippines’s wholly-owned subsidiary Giga Ace 2, Inc. paid P2.981 billion to acquire the shares of the investors in Sacasol, an increase by P200 million from the earlier reported purchase price of P2.772 billion.
It acquired 6,996 common B shares and 36,246 redeemable B shares in the 45-megawatt solar farm, which operates under the feed-in-tariff regime of the Renewable Energy Act.
Meanwhile, Giga Ace 3, Inc., ACEPH’s other subsidiary, also bought the shares of the same group of investors in the 80 MW Islasol for P1.629 billion.
The share purchases were in part of the listed firm’s target of achieving at least 2 gigawatts of attributable renewable energy capacity by 2025.
Electricity prices at the spot market drop almost 40%
posted March 24, 2020 at 09:15 pm by Alena Mae S. Flores
https://manilastandard.net/business/power-technology/320349/electricity-prices-at-the-spot-market-drop-almost-40-.html
The average prices at the Wholesale Electricity Spot Market plunged by almost 40 percent in the first week of the 30-day enhanced community quarantine as power demand fell 21 percent, according to the market operator.
The Independent Electricity Market Operator of the Philippines, operator of the WESM which serves as the country’s trading floor of electricity, said the actual average prices dropped to P1.64 per kilowatt-hour in the first week of the ECQ (March 15 to 21) from P2.71 per kWh in the week of March 8 to 14.
IEMOP said that from March 15 to 21, the actual WESM average price of P1.64 per kWh was also significantly lower than the forecasted average price of P3.44 per kWh. “This represents a 52.5 percent reduction in average price for the week,” IEMOP said.
It said that in the week of March 8 to 14, WESM average market price already showed a decline to P2.71 per kWh from the forecasted average price of P3.85 per kWh, representing a reduction of 29.5 percent amid the ample supply margin as a result of the reduced demand.
IEMOP said the actual average supply was “generally sufficient,” increasing by 2,084 megawatts from March 15 to 21 as the gap between supply and demand increased.
“Actual supply is generally higher than the forecasted supply since several generators supposedly on outage are available during the period,” it said.
IEMOP said that with the implementation of ECQ in Luzon, the demand from March 15 to 21 fell to an average of 7,252 MW from the forecasted 8,916 MW, representing an 18.7-percent (1,664 MW) reduction on the average.
Comparing the actual average demand between the week of March 8-14 at 9,198 MW and week of March 15-21 at 7,252 MW, demand went down by about 21.2 percent (1,946 MW), IEMOP said.
It said that in the Visayas region, actual demand is almost the same as the forecast and available supply is enough through the period.
IEMOP said, however, that some demand reduction was seen starting March 18.
“Comparing the actual average demand from March 8-14 (1,753 MW) with March 15-21 (1,665 MW), a reduction of about 5 percent (87 MW) can be quantified,” IEMOP said.
https://manilastandard.net/business/power-technology/320349/electricity-prices-at-the-spot-market-drop-almost-40-.html
The average prices at the Wholesale Electricity Spot Market plunged by almost 40 percent in the first week of the 30-day enhanced community quarantine as power demand fell 21 percent, according to the market operator.
The Independent Electricity Market Operator of the Philippines, operator of the WESM which serves as the country’s trading floor of electricity, said the actual average prices dropped to P1.64 per kilowatt-hour in the first week of the ECQ (March 15 to 21) from P2.71 per kWh in the week of March 8 to 14.
IEMOP said that from March 15 to 21, the actual WESM average price of P1.64 per kWh was also significantly lower than the forecasted average price of P3.44 per kWh. “This represents a 52.5 percent reduction in average price for the week,” IEMOP said.
It said that in the week of March 8 to 14, WESM average market price already showed a decline to P2.71 per kWh from the forecasted average price of P3.85 per kWh, representing a reduction of 29.5 percent amid the ample supply margin as a result of the reduced demand.
IEMOP said the actual average supply was “generally sufficient,” increasing by 2,084 megawatts from March 15 to 21 as the gap between supply and demand increased.
“Actual supply is generally higher than the forecasted supply since several generators supposedly on outage are available during the period,” it said.
IEMOP said that with the implementation of ECQ in Luzon, the demand from March 15 to 21 fell to an average of 7,252 MW from the forecasted 8,916 MW, representing an 18.7-percent (1,664 MW) reduction on the average.
Comparing the actual average demand between the week of March 8-14 at 9,198 MW and week of March 15-21 at 7,252 MW, demand went down by about 21.2 percent (1,946 MW), IEMOP said.
It said that in the Visayas region, actual demand is almost the same as the forecast and available supply is enough through the period.
IEMOP said, however, that some demand reduction was seen starting March 18.
“Comparing the actual average demand from March 8-14 (1,753 MW) with March 15-21 (1,665 MW), a reduction of about 5 percent (87 MW) can be quantified,” IEMOP said.
Fuel-marking delivers 6B liters of tax-paid petroleum despite COVID-19 difficulties
By: Ben O. de Vera - Reporter 02:07 PM March 24, 2020
https://business.inquirer.net/293349/fuel-marking-delivers-p6b-in-revenue-despite-covid-19-difficulties
The volume of marked tax-paid oil products breached the six-billion liter mark last week, while the Bureau of Customs (BOC) sought exemption of the fuel marking program from movement restrictions during the Luzon community quarantine against the COVID-19 pandemic.
Customs Deputy Commissioner Teddy Sandy S. Raval told the Inquirer last Friday (March 20) that as of March 19, a total of 6.019 billion liters of fuel products had been injected with chemicals signifying payment of correct excise in the case of locally refined petroleum, and import duties for products from abroad.
Raval said 1.1 billion liters was marked in 2019, on top of about five billion from January this year until this month.
Raval said there was no disruption in fuel-marking despite the Luzon quarantine.
Still, Raval said the BOC had sought to exempt the fuel marking program from any quarantine restrictions.
“Disruption of the fuel marking program may mean disruption of fuel supply,” Raval said.
Raval said the BOC sought exemption from at least four government agencies—Department of Health, Department of Energy, Department of Interior and Local Government and the Philippine National Police.
“We’re optimistic they’ll allow it. Markers are goods anyway, not persons who can infect,” Raval said.
Personnel who would do the fuel-marking would be required to observe social distancing, he said.
“We have people in place already at depots and terminals,” Raval said.
The fuel-marking guidelines issued in 2019 required the BOC to do the fuel-marking in depots, tankers, vessels, warehouses and other fuel transport vehicles.
The Bureau of Internal Revenue (BIR) was required to do the marking in depots, gas stations and other retail outlets.
The BOC and BIR had been given police power to do field tests and seize adulterated, diluted or unmarked petroleum and arrest violators.
This year, the government aims to generate an additional P20 billion in revenues from the fuel marking program.
https://business.inquirer.net/293349/fuel-marking-delivers-p6b-in-revenue-despite-covid-19-difficulties
The volume of marked tax-paid oil products breached the six-billion liter mark last week, while the Bureau of Customs (BOC) sought exemption of the fuel marking program from movement restrictions during the Luzon community quarantine against the COVID-19 pandemic.
Customs Deputy Commissioner Teddy Sandy S. Raval told the Inquirer last Friday (March 20) that as of March 19, a total of 6.019 billion liters of fuel products had been injected with chemicals signifying payment of correct excise in the case of locally refined petroleum, and import duties for products from abroad.
Raval said 1.1 billion liters was marked in 2019, on top of about five billion from January this year until this month.
Raval said there was no disruption in fuel-marking despite the Luzon quarantine.
Still, Raval said the BOC had sought to exempt the fuel marking program from any quarantine restrictions.
“Disruption of the fuel marking program may mean disruption of fuel supply,” Raval said.
Raval said the BOC sought exemption from at least four government agencies—Department of Health, Department of Energy, Department of Interior and Local Government and the Philippine National Police.
“We’re optimistic they’ll allow it. Markers are goods anyway, not persons who can infect,” Raval said.
Personnel who would do the fuel-marking would be required to observe social distancing, he said.
“We have people in place already at depots and terminals,” Raval said.
The fuel-marking guidelines issued in 2019 required the BOC to do the fuel-marking in depots, tankers, vessels, warehouses and other fuel transport vehicles.
The Bureau of Internal Revenue (BIR) was required to do the marking in depots, gas stations and other retail outlets.
The BOC and BIR had been given police power to do field tests and seize adulterated, diluted or unmarked petroleum and arrest violators.
This year, the government aims to generate an additional P20 billion in revenues from the fuel marking program.
Tuesday, March 24, 2020
DoE extends deadline for payables due to PSALM
March 24, 2020
https://www.manilatimes.net/2020/03/24/business/doe-extends-deadline-for-payables-due-to-psalm/705331/
THE Department of Energy (DoE) has issued a memorandum saying all payables to the Power Sector Assets and Liabilities Management Corp. (Psalm) whose due date fall during the “enhanced community quarantine” period have been given an extension of 30 days. Signed by Energy Secretary Alfonso Cusi, the memorandum says that payments due to the state-run corporation with due date falling between March 15 and April 14 are covered by the extension. These cover independent power producer administrator payments for both capacity and energy payments; universal charges, such as stranded contract costs, stranded debts, missionary electrification and environmental charge for watershed rehabilitation and management; and payment of the distribution utilities for deferred generation rate adjustment mechanism and incremental currency exchange rate adjustment. It also covers disputes regarding the settlement of any of the accounts payable between the aforementioned dates.
https://www.manilatimes.net/2020/03/24/business/doe-extends-deadline-for-payables-due-to-psalm/705331/
THE Department of Energy (DoE) has issued a memorandum saying all payables to the Power Sector Assets and Liabilities Management Corp. (Psalm) whose due date fall during the “enhanced community quarantine” period have been given an extension of 30 days. Signed by Energy Secretary Alfonso Cusi, the memorandum says that payments due to the state-run corporation with due date falling between March 15 and April 14 are covered by the extension. These cover independent power producer administrator payments for both capacity and energy payments; universal charges, such as stranded contract costs, stranded debts, missionary electrification and environmental charge for watershed rehabilitation and management; and payment of the distribution utilities for deferred generation rate adjustment mechanism and incremental currency exchange rate adjustment. It also covers disputes regarding the settlement of any of the accounts payable between the aforementioned dates.
Why MORE cut power supply to PECO building
March 24, 2020 By Francis Allan L. Angelo
https://dailyguardian.com.ph/why-more-cut-power-supply-to-peco-building/
MORE Electric and Power Corp. (MORE Power) said it cut power supply to the building of Panay Electric Co. (PECO) on General Luna Street, Iloilo City for lack of a meter.
In a statement, MORE Power said it sent a notice to PECO advising the firm to have a meter installed in its building to record its consumption.
The Razon-led firm said PECO cannot enjoy free electricity since it is no longer a distribution utility.
To recall, the Energy Regulatory Commission has revoked the provisional Certificate of Public Convenience and Necessity (CPCN) of PECO while its building was excluded from the assets turned over to MORE Power on orders of the Regional Trial Court.
With the said orders, PECO’s building is considered a private establishment that must have an electric meter just like any ordinary building.
MORE Power said it is now the legitimate power distributor in Iloilo City after securing its congressional franchise and CPCN.
Apart from the PECO building, MORE Power also sent notices to four members of the Cacho family, owners of PECO, after it was found out that they were not paying for their electricity supply.
According to MORE, the service drops in the four Cacho households in City Proper and Jaro districts lack electric meters.
It was also found out that a meter in one of the Cacho houses is charged to PECO but paid for by consumers, which is a violation of Republic Act No. 7832 or the law against the Illegal Use of Electricity.
MORE Power told the Cachos that they must apply for service connections or else they will lose their electricity supply.
It is unfair for consumers if PECO and the Cachos don’t pay because their consumption will be charged as systems loss which is shouldered by consumers.
“PECO is not a distribution utility anymore kaya hindi na sila pwedeng magpalibre. They are using electricity without meter so there is no recording of their billing. That’s illegal use of electricity and MORE is has the right to stop them. It will be unfair to law abiding and legitimate consumers kay i-charge na sa systems loss,” according to MORE Power president and COO Roel Z. Castro.
Castro said MORE must treat PECO just like any other consumer.
“Panawagan ng konsumidor na i-eradicate ang jumpers kaya dapat unahon ang (PECO) building nga malapit sa substation sa General Luna. MORE is very much willing na kabitan sila ng metro being the legitimate DU sa city,” he added.
Castro said that for a legitimate and legal DU, the ERC allows a 1% usage for common facilities that serve the consumers such as offices and substations.
“Peco and the Cachos enjoyed that before. But now that is MORE na ang legit and legal DU, that privilege of Peco has to stop kay unfair na to consumers. Kaya MORE disconnected their office because it is PECO’s and hindi na sila ang legit and legal DU.”
Castro said MORE disconnected the power supply to PECO building last Saturday towards midnight “para wala so much interruption sa kanila.”
https://dailyguardian.com.ph/why-more-cut-power-supply-to-peco-building/
MORE Electric and Power Corp. (MORE Power) said it cut power supply to the building of Panay Electric Co. (PECO) on General Luna Street, Iloilo City for lack of a meter.
In a statement, MORE Power said it sent a notice to PECO advising the firm to have a meter installed in its building to record its consumption.
The Razon-led firm said PECO cannot enjoy free electricity since it is no longer a distribution utility.
To recall, the Energy Regulatory Commission has revoked the provisional Certificate of Public Convenience and Necessity (CPCN) of PECO while its building was excluded from the assets turned over to MORE Power on orders of the Regional Trial Court.
With the said orders, PECO’s building is considered a private establishment that must have an electric meter just like any ordinary building.
MORE Power said it is now the legitimate power distributor in Iloilo City after securing its congressional franchise and CPCN.
Apart from the PECO building, MORE Power also sent notices to four members of the Cacho family, owners of PECO, after it was found out that they were not paying for their electricity supply.
According to MORE, the service drops in the four Cacho households in City Proper and Jaro districts lack electric meters.
It was also found out that a meter in one of the Cacho houses is charged to PECO but paid for by consumers, which is a violation of Republic Act No. 7832 or the law against the Illegal Use of Electricity.
MORE Power told the Cachos that they must apply for service connections or else they will lose their electricity supply.
It is unfair for consumers if PECO and the Cachos don’t pay because their consumption will be charged as systems loss which is shouldered by consumers.
“PECO is not a distribution utility anymore kaya hindi na sila pwedeng magpalibre. They are using electricity without meter so there is no recording of their billing. That’s illegal use of electricity and MORE is has the right to stop them. It will be unfair to law abiding and legitimate consumers kay i-charge na sa systems loss,” according to MORE Power president and COO Roel Z. Castro.
Castro said MORE must treat PECO just like any other consumer.
“Panawagan ng konsumidor na i-eradicate ang jumpers kaya dapat unahon ang (PECO) building nga malapit sa substation sa General Luna. MORE is very much willing na kabitan sila ng metro being the legitimate DU sa city,” he added.
Castro said that for a legitimate and legal DU, the ERC allows a 1% usage for common facilities that serve the consumers such as offices and substations.
“Peco and the Cachos enjoyed that before. But now that is MORE na ang legit and legal DU, that privilege of Peco has to stop kay unfair na to consumers. Kaya MORE disconnected their office because it is PECO’s and hindi na sila ang legit and legal DU.”
Castro said MORE disconnected the power supply to PECO building last Saturday towards midnight “para wala so much interruption sa kanila.”
Power plants to scale down operations to save on fuel
posted March 23, 2020 at 09:30 pm by Manila Standard
https://manilastandard.net/business/power-technology/320241/power-plants-to-scale-down-operations-to-save-on-fuel.html
San Miguel Corp. said Monday power plants will likely scale down operations to save on fuel and secure supply for the coming months.
The company, however, assured the public of sufficient power supply during the enhanced community quarantine period.
“We will continue to operate all our power facilities safely despite the challenges we face and make sure that we supply power where it’s needed. We have prepared for these types of situations and we are ready,” SMC president and chief operating officer Ramon Ang said in a statement.
Ang, who also heads power subsidiary SMC Global Power Holdings Corp., said while there was no issue with power supply today, it would be prudent for power facilities to save as much fuel to ensure continuous operations.
“The COVID-19 crisis is a worldwide issue, and while we all hope for a resolution soon, it’s better if we are prepared if it extends. If there is excess capacity today, particularly since major business and commercial centers and industries are practically shut down, then perhaps government can require power plants to only produce what is needed in order to save on fuel,” he said.
He said SMC’s facilities continued to operate 24/7 to provide uninterrupted supply.
SMC Global Power, one of the country’s leading and most reliable energy companies, owns and operates a multi-fuel portfolio of baseload power plants around the country.
Its power generation facilities are located in Bataan, Bulacan, Zambales and Davao Occidental. It also administers some 2,500 megawatts of capacity from Sual, Ilijan and San Roque plants.
“As far as our facilities are concerned, we can assure sufficient and uninterrupted capacity supplied to the Luzon and Mindanao grids,” Ang said.
SMC Global Power activated its business continuity plan to ensure constant supply, employee safety and operational reliability following the declaration of COVID-19 as a global pandemic by the World Health Organization.
“Our plants are equipped to handle the demand for reliability. Protocols have been activated in our power plants as a response to crises such as pandemics,” Ang said.
“This enables our people to operate our facilities with the necessary guidance that ensures their health and safety during such times,” he said.
SMC Global Power said it was working with the Energy Department, the Inter-Agency Task Force on Emerging Infectious Diseases, local government units and law enforcement agencies on properly navigating through the enhanced community quarantine.
This includes close coordination on the movement of critical people and supplies needed for the continuity of power plant operations.
“We are here to help the government and the Filipino people in this fight. We want to make sure that every part of our business responds to the country’s needs,” Ang said.
https://manilastandard.net/business/power-technology/320241/power-plants-to-scale-down-operations-to-save-on-fuel.html
San Miguel Corp. said Monday power plants will likely scale down operations to save on fuel and secure supply for the coming months.
The company, however, assured the public of sufficient power supply during the enhanced community quarantine period.
“We will continue to operate all our power facilities safely despite the challenges we face and make sure that we supply power where it’s needed. We have prepared for these types of situations and we are ready,” SMC president and chief operating officer Ramon Ang said in a statement.
Ang, who also heads power subsidiary SMC Global Power Holdings Corp., said while there was no issue with power supply today, it would be prudent for power facilities to save as much fuel to ensure continuous operations.
“The COVID-19 crisis is a worldwide issue, and while we all hope for a resolution soon, it’s better if we are prepared if it extends. If there is excess capacity today, particularly since major business and commercial centers and industries are practically shut down, then perhaps government can require power plants to only produce what is needed in order to save on fuel,” he said.
He said SMC’s facilities continued to operate 24/7 to provide uninterrupted supply.
SMC Global Power, one of the country’s leading and most reliable energy companies, owns and operates a multi-fuel portfolio of baseload power plants around the country.
Its power generation facilities are located in Bataan, Bulacan, Zambales and Davao Occidental. It also administers some 2,500 megawatts of capacity from Sual, Ilijan and San Roque plants.
“As far as our facilities are concerned, we can assure sufficient and uninterrupted capacity supplied to the Luzon and Mindanao grids,” Ang said.
SMC Global Power activated its business continuity plan to ensure constant supply, employee safety and operational reliability following the declaration of COVID-19 as a global pandemic by the World Health Organization.
“Our plants are equipped to handle the demand for reliability. Protocols have been activated in our power plants as a response to crises such as pandemics,” Ang said.
“This enables our people to operate our facilities with the necessary guidance that ensures their health and safety during such times,” he said.
SMC Global Power said it was working with the Energy Department, the Inter-Agency Task Force on Emerging Infectious Diseases, local government units and law enforcement agencies on properly navigating through the enhanced community quarantine.
This includes close coordination on the movement of critical people and supplies needed for the continuity of power plant operations.
“We are here to help the government and the Filipino people in this fight. We want to make sure that every part of our business responds to the country’s needs,” Ang said.
Oil prices fall as US economic package crashes
posted March 23, 2020 at 09:00 am by AFP
https://manilastandard.net/business/power-technology/320214/oil-prices-fall-as-us-economic-package-crashes.html
Oil prices fell at the open in Asia on Monday after a trillion-dollar Senate proposal to help the coronavirus-hit American economy was defeated and death tolls soared across Europe and the US.
US benchmark West Texas Intermediate initially tumbled more than three percent but then pulled back some ground to trade 1.5 percent lower, at $22 a barrel.
Brent crude, the international benchmark, fell 4.9 percent to $25 a barrel.
Prices have fallen to multi-year lows in recent weeks as lockdowns and travel restrictions to fight the virus hit demand, and top producers Saudi Arabia and Russia engage in a price war.
The latest drop came after a trillion-dollar Senate proposal to rescue the US economy was defeated after receiving zero support from Democrats, and with five Republicans absent from the chamber because of virus-related quarantines.
The bill had proposed funding for American families, thousands of shuttered or suffering businesses and the nation's critically under-equipped hospitals.
Coronavirus deaths soared across Europe and the United States at the weekend despite heightened restrictions.
The death toll from the virus -- which has upended lives and closed businesses and schools across the planet -- surged to more than 14,300 Sunday, according to an AFP tally.
AxiCorp chief markets strategist Stephen Innes said that "total demand devastation" had set it.
"Oil markets collapsed out of the gate this morning as prices react... to stringent containment lockdown measures," he said.
https://manilastandard.net/business/power-technology/320214/oil-prices-fall-as-us-economic-package-crashes.html
Oil prices fell at the open in Asia on Monday after a trillion-dollar Senate proposal to help the coronavirus-hit American economy was defeated and death tolls soared across Europe and the US.
US benchmark West Texas Intermediate initially tumbled more than three percent but then pulled back some ground to trade 1.5 percent lower, at $22 a barrel.
Brent crude, the international benchmark, fell 4.9 percent to $25 a barrel.
Prices have fallen to multi-year lows in recent weeks as lockdowns and travel restrictions to fight the virus hit demand, and top producers Saudi Arabia and Russia engage in a price war.
The latest drop came after a trillion-dollar Senate proposal to rescue the US economy was defeated after receiving zero support from Democrats, and with five Republicans absent from the chamber because of virus-related quarantines.
The bill had proposed funding for American families, thousands of shuttered or suffering businesses and the nation's critically under-equipped hospitals.
Coronavirus deaths soared across Europe and the United States at the weekend despite heightened restrictions.
The death toll from the virus -- which has upended lives and closed businesses and schools across the planet -- surged to more than 14,300 Sunday, according to an AFP tally.
AxiCorp chief markets strategist Stephen Innes said that "total demand devastation" had set it.
"Oil markets collapsed out of the gate this morning as prices react... to stringent containment lockdown measures," he said.
All oil firms implement hefty cut in pump prices
Published March 23, 2020, 4:04 PM By Myrna M. Velasco
https://business.mb.com.ph/2020/03/23/all-oil-firms-implement-hefty-cut-in-pump-prices/
The prices of gasoline and kerosene products at local pumps will be reduced this week by ₱3.50 per liter; and diesel by ₱2.00 per liter, according to the price adjustment advisories sent by the oil companies.
This is another week of hefty price rollbacks – although Filipino consumers would not be able to fully benefit from it because most are staying home because of the enforced 30-day quarantine in Metro Manila and the rest of Luzon to flatten the spread of the virulent coronavirus.
As of press time, the oil firms that already announced price cuts include Pilipinas Shell Petroleum Corporation, Seaoil, PTT Philippines, Total and Chevron; while the rest of the industry players are anticipated to follow.
Phoenix Petroleum jumped the gun on its competitors and implement similar prices cuts last Friday.
There is a prevailing price freeze on key petroleum products – primarily liquefied petroleum gas (LPG) and kerosene that are essential commodities in Filipino households.
Nevertheless, it was clearly stated in the Department of Energy (DOE) announcement that despite the price freeze, rollbacks shall be implemented for the specified products (kerosene and LPG).
For LPG in particular, pricing adjustments will be due by April 1 – and this is also anticipated to have massive cuts given recent price swings in the world market.
Meanwhile, AFP reported from Singapore yesterday that oil prices fell at the open in Asia on Monday after a trillion-dollar Senate proposal to help the coronavirus-hit American economy was defeated and death tolls soared across Europe and the US.
US benchmark West Texas Intermediate initially tumbled more than three percent but then pulled back some ground to trade 1.5 percent lower, at $22 a barrel.
Brent crude, the international benchmark, fell 4.9 percent to $25 a barrel.
Prices have fallen to multi-year lows in recent weeks as lockdowns and travel restrictions to fight the virus hit demand, and top producers Saudi Arabia and Russia engage in a price war.
In last week’s trading, the price of Dubai crude, which is the benchmark for Asian oil refiners, had skidded to US$27 per barrel, which by far was US$4.0 to US$5.0 per barrel lower than the previous trading week.
The worry of the international market now is the continuing precipitous slide in prices that may nosedive to as low as US$10 per barrel – given the extremely shrinking demand due to constricted movement of global population.
The oil markets would be among those seen extremely battered as the world continues to grapple with the uncertainties foisted by the relentlessly spreading novel coronavirus which had practically stalled economic and human activities across continents.
It is not also helping that the production cuts previously agreed upon by the Organization of the Petroleum Exporting Countries and the Russia-led producers seem to have not been getting enforced at this time.
https://business.mb.com.ph/2020/03/23/all-oil-firms-implement-hefty-cut-in-pump-prices/
The prices of gasoline and kerosene products at local pumps will be reduced this week by ₱3.50 per liter; and diesel by ₱2.00 per liter, according to the price adjustment advisories sent by the oil companies.
This is another week of hefty price rollbacks – although Filipino consumers would not be able to fully benefit from it because most are staying home because of the enforced 30-day quarantine in Metro Manila and the rest of Luzon to flatten the spread of the virulent coronavirus.
As of press time, the oil firms that already announced price cuts include Pilipinas Shell Petroleum Corporation, Seaoil, PTT Philippines, Total and Chevron; while the rest of the industry players are anticipated to follow.
Phoenix Petroleum jumped the gun on its competitors and implement similar prices cuts last Friday.
There is a prevailing price freeze on key petroleum products – primarily liquefied petroleum gas (LPG) and kerosene that are essential commodities in Filipino households.
Nevertheless, it was clearly stated in the Department of Energy (DOE) announcement that despite the price freeze, rollbacks shall be implemented for the specified products (kerosene and LPG).
For LPG in particular, pricing adjustments will be due by April 1 – and this is also anticipated to have massive cuts given recent price swings in the world market.
Meanwhile, AFP reported from Singapore yesterday that oil prices fell at the open in Asia on Monday after a trillion-dollar Senate proposal to help the coronavirus-hit American economy was defeated and death tolls soared across Europe and the US.
US benchmark West Texas Intermediate initially tumbled more than three percent but then pulled back some ground to trade 1.5 percent lower, at $22 a barrel.
Brent crude, the international benchmark, fell 4.9 percent to $25 a barrel.
Prices have fallen to multi-year lows in recent weeks as lockdowns and travel restrictions to fight the virus hit demand, and top producers Saudi Arabia and Russia engage in a price war.
In last week’s trading, the price of Dubai crude, which is the benchmark for Asian oil refiners, had skidded to US$27 per barrel, which by far was US$4.0 to US$5.0 per barrel lower than the previous trading week.
The worry of the international market now is the continuing precipitous slide in prices that may nosedive to as low as US$10 per barrel – given the extremely shrinking demand due to constricted movement of global population.
The oil markets would be among those seen extremely battered as the world continues to grapple with the uncertainties foisted by the relentlessly spreading novel coronavirus which had practically stalled economic and human activities across continents.
It is not also helping that the production cuts previously agreed upon by the Organization of the Petroleum Exporting Countries and the Russia-led producers seem to have not been getting enforced at this time.
Monday, March 23, 2020
Meralco looks for options to conduct CSP
Danessa Rivera (The Philippine Star ) - March 23, 2020 - 12:00am
https://www.philstar.com/business/2020/03/23/2002765/meralco-looks-options-conduct-csp
MANILA, Philippines — Manila Electric Co. (Meralco) is looking at other options to conduct a competitive selection process (CSP) for the 1,200-megawatt (MW) greenfield capacity as face-to-face meetings are highly discouraged due to the enhanced community quarantine in Luzon.
Meralco was supposed to launch its CSP for 1,200-MW greenfield capacity this month, but the bidding process was hampered by the imposition of the 30-day community quarantine in Metro Manila on March 15 to prevent the spread of coronavirus disease 2019 or COVID-19. An enhanced community quarantine was then implemented in the whole island of Luzon after two days.
Amid the enhanced community quarantine, Meralco head of utility economics Lawrence Fernandez said the power distributor is evaluating how to proceed with the competitive bidding.
“We are walking through the CSP guidelines of the DOE to evaluate the steps that previously entailed face-to-face interactions, including but not limited to the conduct of a pre-bid conference and the submission/opening of bids,” he said.
“We will then study alternatives that would eliminate or minimize face-to-face interactions and seek guidance from the DOE if these will still be compliant with the CSP guidelines,” Fernandez said.
The Meralco official said this is to ensure fairness and transparency in the conduct of the CSP despite limitations.
“The objective is to continue to ensure the transparency and integrity of the selection process,” Fernandez said, adding that “the third party bids and awards committee will issue an advisory at the appropriate time.”
https://www.philstar.com/business/2020/03/23/2002765/meralco-looks-options-conduct-csp
MANILA, Philippines — Manila Electric Co. (Meralco) is looking at other options to conduct a competitive selection process (CSP) for the 1,200-megawatt (MW) greenfield capacity as face-to-face meetings are highly discouraged due to the enhanced community quarantine in Luzon.
Meralco was supposed to launch its CSP for 1,200-MW greenfield capacity this month, but the bidding process was hampered by the imposition of the 30-day community quarantine in Metro Manila on March 15 to prevent the spread of coronavirus disease 2019 or COVID-19. An enhanced community quarantine was then implemented in the whole island of Luzon after two days.
Amid the enhanced community quarantine, Meralco head of utility economics Lawrence Fernandez said the power distributor is evaluating how to proceed with the competitive bidding.
“We are walking through the CSP guidelines of the DOE to evaluate the steps that previously entailed face-to-face interactions, including but not limited to the conduct of a pre-bid conference and the submission/opening of bids,” he said.
“We will then study alternatives that would eliminate or minimize face-to-face interactions and seek guidance from the DOE if these will still be compliant with the CSP guidelines,” Fernandez said.
The Meralco official said this is to ensure fairness and transparency in the conduct of the CSP despite limitations.
“The objective is to continue to ensure the transparency and integrity of the selection process,” Fernandez said, adding that “the third party bids and awards committee will issue an advisory at the appropriate time.”
Business groups raise 1.5 Billion to help Metro’s urban poor under “Project Ugnayan” initiative
posted March 23, 2020 at 02:57 am
https://manilastandard.net/news/top-stories/320213/business-groups-raise-1-5-billion-to-help-metro-s-urban-poor-under-project-ugnayan-initiative.html
In response to the COVID-19 crisis, top business groups raised over P1.5 Billion to fund the distribution of grocery vouchers to urban poor residents in the Metro Manila Area.
In a statement posted online, Project Ugnayan targets to distribute P1,000 gift certificates to over 1 Million households in the poor communities of the greater Manila area.
“Project Ugnayan is a collaboration with business groups in cooperation with the Philippine Disaster Resilience Foundation (PDRF) to raise funds in support of ongoing initiatives to help poor families that were economically displaced by the ongoing Enhanced Community Quarantine in Metro Manila.”
“In compliance with social distancing guidelines, gift certificates delivered door to door will be redeemable for food items from accessible groceries and supermarkets.”
“We shall initially engage with Caritas Manila’s Project Damayan and ABS CBN’s Pantawid ng Pag-ibig program for the door to door distribution of grocery vouchers redeemable for food items from accessible groceries and supermarkets. Distribution is ongoing in four pilot areas and will scale-up in cooperation with project partners,”
The business groups supporting Project Ugnayan are (in alphabetical order) : Aboitiz Group, ABS-CBN/Lopez Group, Alliance Global/Megaworld, AY Foundation and RCBC, Ayala Corporation, Caritas Manila, Century Pacific, Concepcion Industrial Corp, DMCI, Gokongwei Group of Companies/Robinsons Retail Holdings, ICTSI, Jollibee, Leonio Group, Mercury Drug, Metrobank/GT Capital, Nutri-Asia, Oishi/Liwayway Marketing Group PDRF, PLDT/Metro Pacific Investments Corporation, Puregold, San Miguel Corporation, and SM/BDO, Sunlife of Canada, Suyen Corp.
The group said that there are ongoing talks with more companies who have signified their intention to contribute more resources to expand the reach of this project.”
Fr. Anton C. Pascual, Executive Director of Caritas Manila said, “We are grateful for the support of the business community and hope that this initiative will inspire more acts of kindness in this time of crisis. Now is the time for our communities to help as one.”
“The national health crisis that confronts us is instructive of the need to adopt a holistic perspective that enjoins every sector of society to partake in mitigating the adverse effects of this health debacle.
We believe that the current national emergency needs pro-active and harmonized intervention of all sectors of society. An inclusive approach that taps all available resources and talents,”
https://manilastandard.net/news/top-stories/320213/business-groups-raise-1-5-billion-to-help-metro-s-urban-poor-under-project-ugnayan-initiative.html
In response to the COVID-19 crisis, top business groups raised over P1.5 Billion to fund the distribution of grocery vouchers to urban poor residents in the Metro Manila Area.
In a statement posted online, Project Ugnayan targets to distribute P1,000 gift certificates to over 1 Million households in the poor communities of the greater Manila area.
“Project Ugnayan is a collaboration with business groups in cooperation with the Philippine Disaster Resilience Foundation (PDRF) to raise funds in support of ongoing initiatives to help poor families that were economically displaced by the ongoing Enhanced Community Quarantine in Metro Manila.”
“In compliance with social distancing guidelines, gift certificates delivered door to door will be redeemable for food items from accessible groceries and supermarkets.”
“We shall initially engage with Caritas Manila’s Project Damayan and ABS CBN’s Pantawid ng Pag-ibig program for the door to door distribution of grocery vouchers redeemable for food items from accessible groceries and supermarkets. Distribution is ongoing in four pilot areas and will scale-up in cooperation with project partners,”
The business groups supporting Project Ugnayan are (in alphabetical order) : Aboitiz Group, ABS-CBN/Lopez Group, Alliance Global/Megaworld, AY Foundation and RCBC, Ayala Corporation, Caritas Manila, Century Pacific, Concepcion Industrial Corp, DMCI, Gokongwei Group of Companies/Robinsons Retail Holdings, ICTSI, Jollibee, Leonio Group, Mercury Drug, Metrobank/GT Capital, Nutri-Asia, Oishi/Liwayway Marketing Group PDRF, PLDT/Metro Pacific Investments Corporation, Puregold, San Miguel Corporation, and SM/BDO, Sunlife of Canada, Suyen Corp.
The group said that there are ongoing talks with more companies who have signified their intention to contribute more resources to expand the reach of this project.”
Fr. Anton C. Pascual, Executive Director of Caritas Manila said, “We are grateful for the support of the business community and hope that this initiative will inspire more acts of kindness in this time of crisis. Now is the time for our communities to help as one.”
“The national health crisis that confronts us is instructive of the need to adopt a holistic perspective that enjoins every sector of society to partake in mitigating the adverse effects of this health debacle.
We believe that the current national emergency needs pro-active and harmonized intervention of all sectors of society. An inclusive approach that taps all available resources and talents,”
Private firms launch drive for lockdown-affected Filipinos
March 23, 2020 | 12:04 am
https://www.bworldonline.com/private-firms-launch-drive-for-lockdown-affected-filipinos/
LOPEZ-LED companies have donated P100 million to ABC-CBN Corp.’s fund-raising campaign that aims to help local government units provide food and basic necessities to families affected by the Luzon-wide lockdown, the media company said.
ABS-CBN’s fund-raising campaign “Pantawid ng Pag-ibig” accepts donations from the public.
“ABS-CBN will be purchasing food and other basic necessities that the Filipino families need. At least four companies have already pledged to allocate stocks for the relief packages. These are Century Canning Corporation, Suy Sing Commercial Corporation, Republic Biscuit Corporation, and the Lucio Tan Group,” it said in a statement over the weekend.
The Lopezes are among the big names in Philippine business who have separately responded to the plight of Filipinos as the new coronavirus prompted an enhanced community quarantine to contain its spread.
Globe Telecom, Inc. now allows its postpaid and platinum subscribers to suspend their monthly spending limit amid the surge in demand for voice and mobile data.
Ayala-led Globe said the new option it gives to thee subscribers will help those who are studying or working from home during the Luzon-wide lockdown period.
Pangilinan-led Smart Communications, Inc. announced on Friday that it now gives its prepaid and Talk ‘N Text subscribers an extra 1 gigabyte of data for Facebook, Instagram, and Tiktok “to provide them with means to stay connected and productive amid the COVID-19 situation.”
Universal Robina Corp. (URC) and the Gokongwei Brothers Foundation (GBF) have also been distributing products such as Great Taste Coffee, Magic Crackers, Nissin Noodles and C2 to checkpoints and hospitals.
The GBF has created a P100-million fund to support the government in its fight against COVID-19.
The foundation has also committed to donate surgical masks and other personal protective equipment to medical institutions.
Razon-led Solaire Resort & Casino’s Bloomberry Cultural Foundation, Inc. (BCFI) is also donating P60 million worth of personal protective equipment to the Department of Health.
“Shipment of these equipment are due to arrive late next week, and shall be distributed to medical front liners in various hospitals dealing with COVID-19 patients,” Bloomberry Resorts Corp. said in a statement over the weekend.
“BCFI has also applied with the FDA for the necessary permits for three different COVID-19 testing kits currently available in China and South Korea. As soon as the clearances and permits are issued, BCFI will procure 100,000 test kits to augment the much needed supply of the government for testing COVID-19,” it added. — Arjay L. Balinbin
https://www.bworldonline.com/private-firms-launch-drive-for-lockdown-affected-filipinos/
LOPEZ-LED companies have donated P100 million to ABC-CBN Corp.’s fund-raising campaign that aims to help local government units provide food and basic necessities to families affected by the Luzon-wide lockdown, the media company said.
ABS-CBN’s fund-raising campaign “Pantawid ng Pag-ibig” accepts donations from the public.
“ABS-CBN will be purchasing food and other basic necessities that the Filipino families need. At least four companies have already pledged to allocate stocks for the relief packages. These are Century Canning Corporation, Suy Sing Commercial Corporation, Republic Biscuit Corporation, and the Lucio Tan Group,” it said in a statement over the weekend.
The Lopezes are among the big names in Philippine business who have separately responded to the plight of Filipinos as the new coronavirus prompted an enhanced community quarantine to contain its spread.
Globe Telecom, Inc. now allows its postpaid and platinum subscribers to suspend their monthly spending limit amid the surge in demand for voice and mobile data.
Ayala-led Globe said the new option it gives to thee subscribers will help those who are studying or working from home during the Luzon-wide lockdown period.
Pangilinan-led Smart Communications, Inc. announced on Friday that it now gives its prepaid and Talk ‘N Text subscribers an extra 1 gigabyte of data for Facebook, Instagram, and Tiktok “to provide them with means to stay connected and productive amid the COVID-19 situation.”
Universal Robina Corp. (URC) and the Gokongwei Brothers Foundation (GBF) have also been distributing products such as Great Taste Coffee, Magic Crackers, Nissin Noodles and C2 to checkpoints and hospitals.
The GBF has created a P100-million fund to support the government in its fight against COVID-19.
The foundation has also committed to donate surgical masks and other personal protective equipment to medical institutions.
Razon-led Solaire Resort & Casino’s Bloomberry Cultural Foundation, Inc. (BCFI) is also donating P60 million worth of personal protective equipment to the Department of Health.
“Shipment of these equipment are due to arrive late next week, and shall be distributed to medical front liners in various hospitals dealing with COVID-19 patients,” Bloomberry Resorts Corp. said in a statement over the weekend.
“BCFI has also applied with the FDA for the necessary permits for three different COVID-19 testing kits currently available in China and South Korea. As soon as the clearances and permits are issued, BCFI will procure 100,000 test kits to augment the much needed supply of the government for testing COVID-19,” it added. — Arjay L. Balinbin
Petron says fuel supply secure
March 23, 2020 | 12:02 am
https://www.bworldonline.com/petron-says-fuel-supply-secure/
THE Philippine’s largest fuel refiner said it has a steady supply of its petroleum products during the Luzon-wide enhanced community quarantine.
Petron Corp. on Saturday assured its continuous delivery of fuel supplies from March 17 to April 14 as the government ramped up its fight to prevent the spread of the new coronavirus disease 2019 (COVID-19).
“So far, our entire supply chain is working overtime to ensure that enough products are produced at our refinery. Vessels are continuously loaded so that our terminals are filled, and tank truck operations remain consistent,” Petron President and Chief Executive Officer Ramon S. Ang said in a statement.
“We are also trying our best to keep as many of our stations open and filled as possible while putting the safety and well-being of our employees first,” he added.
There are an estimated 2.7 billion liters of crude and oil products in the National Capital Region as of Feb. 29, according to the Department of Energy (DoE). This inventory can last up to 45 days, which is above the oil industry’s minimum inventory requirement.
Last week, Petron’s parent San Miguel Corp. noted in its disclosure to the Philippine Stock Exchange that there is a possibility of lower demand for fuel as public and private transportation is suspended.
“Such decrease will likely occur for all kinds [of] fuel such as gasoline, diesel, and aviation fuel,” it added.
Besides Petron, competitors Pilipinas Shell Petroleum Corp. and Phoenix Petroleum Philippines, Inc. have also implemented their respective business continuity plans upon the order from the DoE.
Petron supplies nearly 30% of the Philippines’ petroleum requirement via its 180,000 barrel-per-day Bataan refinery, 30 terminals, and over 2,400 stations nationwide. — Adam J. Ang
https://www.bworldonline.com/petron-says-fuel-supply-secure/
THE Philippine’s largest fuel refiner said it has a steady supply of its petroleum products during the Luzon-wide enhanced community quarantine.
Petron Corp. on Saturday assured its continuous delivery of fuel supplies from March 17 to April 14 as the government ramped up its fight to prevent the spread of the new coronavirus disease 2019 (COVID-19).
“So far, our entire supply chain is working overtime to ensure that enough products are produced at our refinery. Vessels are continuously loaded so that our terminals are filled, and tank truck operations remain consistent,” Petron President and Chief Executive Officer Ramon S. Ang said in a statement.
“We are also trying our best to keep as many of our stations open and filled as possible while putting the safety and well-being of our employees first,” he added.
There are an estimated 2.7 billion liters of crude and oil products in the National Capital Region as of Feb. 29, according to the Department of Energy (DoE). This inventory can last up to 45 days, which is above the oil industry’s minimum inventory requirement.
Last week, Petron’s parent San Miguel Corp. noted in its disclosure to the Philippine Stock Exchange that there is a possibility of lower demand for fuel as public and private transportation is suspended.
“Such decrease will likely occur for all kinds [of] fuel such as gasoline, diesel, and aviation fuel,” it added.
Besides Petron, competitors Pilipinas Shell Petroleum Corp. and Phoenix Petroleum Philippines, Inc. have also implemented their respective business continuity plans upon the order from the DoE.
Petron supplies nearly 30% of the Philippines’ petroleum requirement via its 180,000 barrel-per-day Bataan refinery, 30 terminals, and over 2,400 stations nationwide. — Adam J. Ang
Aboitiz group offers COVID19 ‘lifeline’
By: Doris Dumlao-Abadilla / 10:31 AM March 23, 2020
https://business.inquirer.net/293250/aboitiz-group-offers-covid19-lifeline
Four electricity distribution firms run by the Aboitiz group, including those outside locked-down Luzon, have offered a 30-day grace period for electricity bills payments to help consumers cope with the COVID-19 pandemic.
The Aboitiz group’s banking and property units have likewise offered a 30-day extension of payments while one-month rental fees were waived for the group’s shopping malls in Luzon and Visayas as part of a COVID-19 “lifeline” package extended to customers.
AboitizPower distribution units Visayan Electric Co. Inc. (VECO), Davao Light & Power Co., Cotabato Light & Power Co., and Subic EnerZone announced a 30-day payment extension for bills due on March 15 to April 14, 2020.
Scheduled power interruptions will also be limited to customer requests and vital line maintenance, the group assured.
“We in Aboitiz fully recognize the impact of the current situation on our clients and customers ー and we are doing our best to help them cope until things return to normal. We are with you as we beat the odds together during this challenging time,” Aboitiz Group president and chief executive officer Sabin Aboitiz said in a press statement on Sunday.
To ensure the adequate and reliable supply and distribution of electricity, business continuity plans have been activated across AboitizPower’s power generation facilities and distribution utilities, all of which are fully operational. Its generation facilities also continue to operate and provide enough power to the grid.
The country’s largest power utility, Manila Electric Co. which is part of the Metro Pacific group led by businessman Manuel V. Pangilinan, earlier extended the deadline for payment of electricity bills due from March 1 to April 14.
Visayan Electric Company Inc. (VECO) is the second largest electric utility in the Philippines serving the cities of Cebu, Mandaue, Talisay, Naga and four municipalities of the greater part of Metro Cebu – Liloan, Consolacion, Minglanilla and San Fernando. Its franchise service covers an area of about 674 square kilometers with an estimated population of 1.73 million.
Davao Light is the country’s third largest privately-owned electric distribution utility, with franchise area covering Davao City, areas of Panabo City, and the municipalities of Carmen, Dujali, and Santo Tomas in Davao del Norte, with a population of around 1.8 million and a total area of 3,561 square kilometers.
Cotabato Light’s service area covers Cotabato City and parts of Datu Odin Sinsuat and Sultan Kudarat municipalities under Maguindanao Province while Subic EnerZone is responsible for operating the Subic Bay Freeport Zone power distribution system.
Meanwhile, Union Bank of the Philippines offered a 30-day extension with no late fees for credit cards, housing loans, auto loans, and quick loans to qualified customers and waived online Instapay transfer fees until April 14, 2020. The bank is also encouraging its customers to “go digital” and “bank from home.” A similar grace period was offered by UnionBank’s subsidiary, City Savings Bank, for motorcycle loan borrowers in good standing.
AboitizLand waived one-month rent to all the tenants of its malls in Luzon and Visayas and extended payment deadlines for bills issued during the previous month. For its residential business, it also provided equity payment extensions for accounts with due dates from March 16 to April 15, 2020 and waived penalties and fees associated with transactions for this period.
The microstudio rental apartments operated by AboitizLand with Point Blue also reduced the required three-month minimum lease term for all units to one-month lease. This is to offer safer alternative housing for people who suffer long work commutes, and help businesses such as business process outsourcing companies to continue their operations.
The group’s food manufacturing arm, Pilmico Foods Corp., also ensured continued operation and unhampered production in its flour, feeds, and farm facilities to contribute to food supply stability in areas affected by the quarantine. Digital platforms are harnessed to continue serving its partners and customers through online consultations for baking, livestock raising, nutrition, and others.
https://business.inquirer.net/293250/aboitiz-group-offers-covid19-lifeline
Four electricity distribution firms run by the Aboitiz group, including those outside locked-down Luzon, have offered a 30-day grace period for electricity bills payments to help consumers cope with the COVID-19 pandemic.
The Aboitiz group’s banking and property units have likewise offered a 30-day extension of payments while one-month rental fees were waived for the group’s shopping malls in Luzon and Visayas as part of a COVID-19 “lifeline” package extended to customers.
AboitizPower distribution units Visayan Electric Co. Inc. (VECO), Davao Light & Power Co., Cotabato Light & Power Co., and Subic EnerZone announced a 30-day payment extension for bills due on March 15 to April 14, 2020.
Scheduled power interruptions will also be limited to customer requests and vital line maintenance, the group assured.
“We in Aboitiz fully recognize the impact of the current situation on our clients and customers ー and we are doing our best to help them cope until things return to normal. We are with you as we beat the odds together during this challenging time,” Aboitiz Group president and chief executive officer Sabin Aboitiz said in a press statement on Sunday.
To ensure the adequate and reliable supply and distribution of electricity, business continuity plans have been activated across AboitizPower’s power generation facilities and distribution utilities, all of which are fully operational. Its generation facilities also continue to operate and provide enough power to the grid.
The country’s largest power utility, Manila Electric Co. which is part of the Metro Pacific group led by businessman Manuel V. Pangilinan, earlier extended the deadline for payment of electricity bills due from March 1 to April 14.
Visayan Electric Company Inc. (VECO) is the second largest electric utility in the Philippines serving the cities of Cebu, Mandaue, Talisay, Naga and four municipalities of the greater part of Metro Cebu – Liloan, Consolacion, Minglanilla and San Fernando. Its franchise service covers an area of about 674 square kilometers with an estimated population of 1.73 million.
Davao Light is the country’s third largest privately-owned electric distribution utility, with franchise area covering Davao City, areas of Panabo City, and the municipalities of Carmen, Dujali, and Santo Tomas in Davao del Norte, with a population of around 1.8 million and a total area of 3,561 square kilometers.
Cotabato Light’s service area covers Cotabato City and parts of Datu Odin Sinsuat and Sultan Kudarat municipalities under Maguindanao Province while Subic EnerZone is responsible for operating the Subic Bay Freeport Zone power distribution system.
Meanwhile, Union Bank of the Philippines offered a 30-day extension with no late fees for credit cards, housing loans, auto loans, and quick loans to qualified customers and waived online Instapay transfer fees until April 14, 2020. The bank is also encouraging its customers to “go digital” and “bank from home.” A similar grace period was offered by UnionBank’s subsidiary, City Savings Bank, for motorcycle loan borrowers in good standing.
AboitizLand waived one-month rent to all the tenants of its malls in Luzon and Visayas and extended payment deadlines for bills issued during the previous month. For its residential business, it also provided equity payment extensions for accounts with due dates from March 16 to April 15, 2020 and waived penalties and fees associated with transactions for this period.
The microstudio rental apartments operated by AboitizLand with Point Blue also reduced the required three-month minimum lease term for all units to one-month lease. This is to offer safer alternative housing for people who suffer long work commutes, and help businesses such as business process outsourcing companies to continue their operations.
The group’s food manufacturing arm, Pilmico Foods Corp., also ensured continued operation and unhampered production in its flour, feeds, and farm facilities to contribute to food supply stability in areas affected by the quarantine. Digital platforms are harnessed to continue serving its partners and customers through online consultations for baking, livestock raising, nutrition, and others.
ERC defers FIT-All collection
Danessa Rivera (The Philippine Star) - March 23, 2020 - 12:00am
https://www.philstar.com/business/2020/03/23/2002754/erc-defers-fit-all-collection
MANILA, Philippines — The Energy Regulatory Commission (ERC) has deferred the collection of Feed-In Tariff Allowance (FIT-All) for one month to lower the electricity rates and provide relief to consumers amid the spread of the coronavirus disease 2019 or COVID-19.
The ERC also said the Wholesale Electricity Spot Market (WESM) will continue to operate amid the government’s declaration of a State of Public Health Emergency throughout the country.
The National Transmission Corp. (TransCo) collects P0.0495 per kilowatt-hour (kwh) from on-grid consumers to pay the renewable energy developers.
“The Commission ordered the suspension of the FIT-All collection to provide some economic relief to the majority of electricity consumers who are mostly daily wage earners,” ERC chairperson and CEO Agnes Devanadera said.
“With the ongoing lockdown situation, most of them were imposed a forced unpaid leave, reduced working hours, or no work-no pay arrangement. The FIT-All suspension will mean a P0.04 per kwh reduction in the electricity bill,” she said.
The ERC estimates that at least 19 million electricity consumers in Luzon, Visayas, and Mindanao will benefit from the reduced electricity rates due to the suspension of FIT-All collection.
This, however, will not affect renewable energy developers’ viability as the FIT-All fund has available balance to service its obligations for the said period of suspension.
https://www.philstar.com/business/2020/03/23/2002754/erc-defers-fit-all-collection
MANILA, Philippines — The Energy Regulatory Commission (ERC) has deferred the collection of Feed-In Tariff Allowance (FIT-All) for one month to lower the electricity rates and provide relief to consumers amid the spread of the coronavirus disease 2019 or COVID-19.
The ERC also said the Wholesale Electricity Spot Market (WESM) will continue to operate amid the government’s declaration of a State of Public Health Emergency throughout the country.
The National Transmission Corp. (TransCo) collects P0.0495 per kilowatt-hour (kwh) from on-grid consumers to pay the renewable energy developers.
“The Commission ordered the suspension of the FIT-All collection to provide some economic relief to the majority of electricity consumers who are mostly daily wage earners,” ERC chairperson and CEO Agnes Devanadera said.
“With the ongoing lockdown situation, most of them were imposed a forced unpaid leave, reduced working hours, or no work-no pay arrangement. The FIT-All suspension will mean a P0.04 per kwh reduction in the electricity bill,” she said.
The ERC estimates that at least 19 million electricity consumers in Luzon, Visayas, and Mindanao will benefit from the reduced electricity rates due to the suspension of FIT-All collection.
This, however, will not affect renewable energy developers’ viability as the FIT-All fund has available balance to service its obligations for the said period of suspension.
Meralco billing customers based on 3-month average
Danessa Rivera (The Philippine Star) - March 22, 2020 - 12:00am
https://www.philstar.com/business/2020/03/22/2002575/meralco-billing-customers-based-3-month-average
MANILA, Philippines — Customers of Manila Electric Co. (Meralco) will be charged a three-month average in this month’s billing as it suspends meter reading and bill delivery services amid the Luzon month-long quarantine to contain the spread of the coronavirus disease 2019 (COVID-19).
“Due to the enhanced community quarantine, Meralco is holding off on physical meter reading and bill deliveries,” Meralco said.
With the meter reading and bill delivery, Meralco said customers with meters scheduled to be read from March 17 to April 14, electricity consumption will instead be estimated based on their average consumption for the past three months.
This is in compliance with the rules prescribed by the Energy Regulatory Commission (ERC).
“The difference will be reflected on your next bill and corresponding charges will be adjusted,” Meralco said.
Earlier, Meralco said it would provide a 30-day payment extension for bills due from March 1 to April 14.
This comes before the Department of Energy (DOE) called on the power sector to defer payments of obligations and dues.
Energy Secretary Alfonso Cusi issued a memorandum calling on public and private power sector corporations to defer payments of obligations and dues for 30 days after the conclusion of the enhanced community quarantine period on April 14.
“The Philippine energy family is in full solidarity with the entire nation in the battle against COVID-19. Energy services must be available 24/7 for everyone, most especially our frontline heroes who are risking their lives daily for the benefit of our fellow countrymen. The memo we issued is an additional measure to help keep the energy sector, as well as our stakeholders afloat during this time,” Cusi said.
Among the salient features of the memorandum include:
• The enjoinment of fuel/resource suppliers of generating facilities nationwide to extend the payment of obligations for 30 days from 14 April 2020. This includes payments to coal suppliers of generation facilities; payments of generation facilities for diesel, bunker, lubricants, and other derivative products of oil to their suppliers; payments of geothermal facilities to their steam suppliers; and payment of generation facilities for Malampaya natural gas;
• the extension of payments due to the Power Sector Assets and Liabilities Management Corp., National Power Corp., National Transmission Corp., and the Independent Electricity Market Operator for 30 days from 14 April 2020;
• the immediate remittance of the DOE and generation companies to host beneficiaries of shares from electricity sales under the Energy Regulation No. 1-94 Funds, particularly the Reforestation, Water Management Health, Environment Enhancement Fund, provided that there has been a prior execution of a Memorandum of Agreement and an established trust account in accordance with Department Circular No. DC2018-08-0021 and its supplemental advisories;
• the encouragement of lessors of land for energy facilities nationwide to extend payment of rentals for 30 days from 14 April 2020;
• the encouragement of local government units hosting energy facilities to extend the payment deadline for applicable local taxes, fees or charges; and
• the enjoinment of distribution utilities nationwide to give their electricity consumers a 30-day extension for payment of bills due for the period of 15 March to 14 April 2020.
Following the DOE memorandum, state-run National Electrification Administration (NEA) enjoined the 121 electric cooperatives (ECs) to provide a 30-day payment extension for electricity bills.
https://www.philstar.com/business/2020/03/22/2002575/meralco-billing-customers-based-3-month-average
MANILA, Philippines — Customers of Manila Electric Co. (Meralco) will be charged a three-month average in this month’s billing as it suspends meter reading and bill delivery services amid the Luzon month-long quarantine to contain the spread of the coronavirus disease 2019 (COVID-19).
“Due to the enhanced community quarantine, Meralco is holding off on physical meter reading and bill deliveries,” Meralco said.
With the meter reading and bill delivery, Meralco said customers with meters scheduled to be read from March 17 to April 14, electricity consumption will instead be estimated based on their average consumption for the past three months.
This is in compliance with the rules prescribed by the Energy Regulatory Commission (ERC).
“The difference will be reflected on your next bill and corresponding charges will be adjusted,” Meralco said.
Earlier, Meralco said it would provide a 30-day payment extension for bills due from March 1 to April 14.
This comes before the Department of Energy (DOE) called on the power sector to defer payments of obligations and dues.
Energy Secretary Alfonso Cusi issued a memorandum calling on public and private power sector corporations to defer payments of obligations and dues for 30 days after the conclusion of the enhanced community quarantine period on April 14.
“The Philippine energy family is in full solidarity with the entire nation in the battle against COVID-19. Energy services must be available 24/7 for everyone, most especially our frontline heroes who are risking their lives daily for the benefit of our fellow countrymen. The memo we issued is an additional measure to help keep the energy sector, as well as our stakeholders afloat during this time,” Cusi said.
Among the salient features of the memorandum include:
• The enjoinment of fuel/resource suppliers of generating facilities nationwide to extend the payment of obligations for 30 days from 14 April 2020. This includes payments to coal suppliers of generation facilities; payments of generation facilities for diesel, bunker, lubricants, and other derivative products of oil to their suppliers; payments of geothermal facilities to their steam suppliers; and payment of generation facilities for Malampaya natural gas;
• the extension of payments due to the Power Sector Assets and Liabilities Management Corp., National Power Corp., National Transmission Corp., and the Independent Electricity Market Operator for 30 days from 14 April 2020;
• the immediate remittance of the DOE and generation companies to host beneficiaries of shares from electricity sales under the Energy Regulation No. 1-94 Funds, particularly the Reforestation, Water Management Health, Environment Enhancement Fund, provided that there has been a prior execution of a Memorandum of Agreement and an established trust account in accordance with Department Circular No. DC2018-08-0021 and its supplemental advisories;
• the encouragement of lessors of land for energy facilities nationwide to extend payment of rentals for 30 days from 14 April 2020;
• the encouragement of local government units hosting energy facilities to extend the payment deadline for applicable local taxes, fees or charges; and
• the enjoinment of distribution utilities nationwide to give their electricity consumers a 30-day extension for payment of bills due for the period of 15 March to 14 April 2020.
Following the DOE memorandum, state-run National Electrification Administration (NEA) enjoined the 121 electric cooperatives (ECs) to provide a 30-day payment extension for electricity bills.
PSALM defers bidding for Malaya power plant
Danessa Rivera (The Philippine Star) - March 22, 2020 - 12:00am
https://www.philstar.com/business/2020/03/22/2002568/psalm-defers-bidding-malaya-power-plant
MANILA, Philippines — State-run Power Sector Assets and Liabilities Management Corp. (PSALM) has pushed back the bid date for the 650-megawatt Malaya Thermal Power Plant (TPP) in Rizal to May 19.
The original deadline for the submission of bids for the third round of public bidding for the Malaya TPP is April 30.
The adjustment in the bid schedule was made in view of the enhanced community quarantine throughout Luzon to avert the spread of the coronavirus 2019 disease (COVID-19).
“In view of the enhanced quarantine in Luzon, PSALM adjusted the Malaya TPP bidding schedule and notified the interested bidders of the same,” PSALM president and chief executive officer Irene Besido-Garcia said in a text message.
Apart from the bid deadline, PSALM has also set the last day for the submission of letters of intent (LOI), executed confidential agreement, undertaking forms and payment of a non-refundable P150,000 participation fee on April 16.
“LOI is a requirement to acquire the bidding package for MTPP,” Besido-Garcia said.
Meanwhile, the state-run firm has given interested parties until April 17 to submit all documentary deliverables.
PSALM will disclose the minimum bid price to qualified bidders immediately after obtaining the approval of its board.
The MTPP is currently operating and is being dispatched as a must run unit (MRU) by the National Grid Corp. of the Philippines (NGCP).
Once privatized, MTPP is no longer required to run as an MRU.
In 2019, there were two rounds of public bidding and both were unsuccessful.
PSALM is bent on privatizing the asset, which is sold on an “as-is-where-is” basis, by taking the necessary steps to adjust the minimum bid price.
It has also conducted valuation studies on MTPP and its underlying land in determining the reserve bid price.
PSALM had asked the Commission on Audit (COA) to allow it to lower the price of MTPP after two rounds of failed bidding.
https://www.philstar.com/business/2020/03/22/2002568/psalm-defers-bidding-malaya-power-plant
MANILA, Philippines — State-run Power Sector Assets and Liabilities Management Corp. (PSALM) has pushed back the bid date for the 650-megawatt Malaya Thermal Power Plant (TPP) in Rizal to May 19.
The original deadline for the submission of bids for the third round of public bidding for the Malaya TPP is April 30.
The adjustment in the bid schedule was made in view of the enhanced community quarantine throughout Luzon to avert the spread of the coronavirus 2019 disease (COVID-19).
“In view of the enhanced quarantine in Luzon, PSALM adjusted the Malaya TPP bidding schedule and notified the interested bidders of the same,” PSALM president and chief executive officer Irene Besido-Garcia said in a text message.
Apart from the bid deadline, PSALM has also set the last day for the submission of letters of intent (LOI), executed confidential agreement, undertaking forms and payment of a non-refundable P150,000 participation fee on April 16.
“LOI is a requirement to acquire the bidding package for MTPP,” Besido-Garcia said.
Meanwhile, the state-run firm has given interested parties until April 17 to submit all documentary deliverables.
PSALM will disclose the minimum bid price to qualified bidders immediately after obtaining the approval of its board.
The MTPP is currently operating and is being dispatched as a must run unit (MRU) by the National Grid Corp. of the Philippines (NGCP).
Once privatized, MTPP is no longer required to run as an MRU.
In 2019, there were two rounds of public bidding and both were unsuccessful.
PSALM is bent on privatizing the asset, which is sold on an “as-is-where-is” basis, by taking the necessary steps to adjust the minimum bid price.
It has also conducted valuation studies on MTPP and its underlying land in determining the reserve bid price.
PSALM had asked the Commission on Audit (COA) to allow it to lower the price of MTPP after two rounds of failed bidding.
Crude reality: price crash means oil firms must slash spending
Published March 22, 2020, 1:55 PMBy Agence France-Presse
https://business.mb.com.ph/2020/03/22/crude-reality-price-crash-means-oil-firms-must-slash-spending/
Confronted with a dizzying drop in prices, oil firms face a real challenge as they try to cut investment spending in order to survive a coronavirus-induced collapse in demand coupled with a Russia-Saudi Arabia price war.
Investment in oil exploration and production was set to hit just over half a trillion dollars this year according to the French research body IFPEN, as firms sought to maintain and expand output.
But the emergence of the coronavirus, which has seen nations across the world confine citizens at home and shutter businesses to slow its spread, has upended all forecasts.
The International Energy Agency, which advises oil-importing nations on energy policy, now expects the first annual drop in oil demand since 2009 during the global financial crisis, as the global economy tips into recession.
The main international benchmark, Brent crude, has fallen from just shy of $60 per barrel to under $25 this week, before regaining some lost ground.
The main US benchmark, WTI, tumbled from nearly $54 to just over $20.
Not all of the drop is due to the coronavirus.
The price of oil had been supported for the past couple of years by production limits agreed by the OPEC oil cartel led by Saudi Arabia and a number of other producers including Russia.
However Russia and Saudi Arabia failed to agree earlier this month on deeper cuts to take account of falling demand due to the coronavirus pandemic.
Saudi Arabia subsequently slashed prices and announced it would boost output and Russia followed suit, leading to the vertiginous drop in prices.
Cut and shift
“All companies in the sector will be seeing what more they can do to cut costs, shift their activities to the lowest cost fields they can, trim investment and think hard about what dividend they can pay,” said Professor David Elmes at Warwick Business School.
While reducing investment is relatively easy in the near term, the longer prices remain low the more firms will need to look at shutting down production that is more expensive, such as offshore.
“For the majors, the prospect of $30 per barrel of oil or below for a period of time is an extreme challenge,” said Biraj Borkhataria, an analyst at RBC Capital Markets.
He said that if these prices persist more than six months, then oil majors would need to cut into the generous dividends they pay — which is why they are prized by many investors — and that prospect has already been partly incorporated into their share prices.
https://business.mb.com.ph/2020/03/22/crude-reality-price-crash-means-oil-firms-must-slash-spending/
Confronted with a dizzying drop in prices, oil firms face a real challenge as they try to cut investment spending in order to survive a coronavirus-induced collapse in demand coupled with a Russia-Saudi Arabia price war.
Investment in oil exploration and production was set to hit just over half a trillion dollars this year according to the French research body IFPEN, as firms sought to maintain and expand output.
But the emergence of the coronavirus, which has seen nations across the world confine citizens at home and shutter businesses to slow its spread, has upended all forecasts.
The International Energy Agency, which advises oil-importing nations on energy policy, now expects the first annual drop in oil demand since 2009 during the global financial crisis, as the global economy tips into recession.
The main international benchmark, Brent crude, has fallen from just shy of $60 per barrel to under $25 this week, before regaining some lost ground.
The main US benchmark, WTI, tumbled from nearly $54 to just over $20.
Not all of the drop is due to the coronavirus.
The price of oil had been supported for the past couple of years by production limits agreed by the OPEC oil cartel led by Saudi Arabia and a number of other producers including Russia.
However Russia and Saudi Arabia failed to agree earlier this month on deeper cuts to take account of falling demand due to the coronavirus pandemic.
Saudi Arabia subsequently slashed prices and announced it would boost output and Russia followed suit, leading to the vertiginous drop in prices.
Cut and shift
“All companies in the sector will be seeing what more they can do to cut costs, shift their activities to the lowest cost fields they can, trim investment and think hard about what dividend they can pay,” said Professor David Elmes at Warwick Business School.
While reducing investment is relatively easy in the near term, the longer prices remain low the more firms will need to look at shutting down production that is more expensive, such as offshore.
“For the majors, the prospect of $30 per barrel of oil or below for a period of time is an extreme challenge,” said Biraj Borkhataria, an analyst at RBC Capital Markets.
He said that if these prices persist more than six months, then oil majors would need to cut into the generous dividends they pay — which is why they are prized by many investors — and that prospect has already been partly incorporated into their share prices.
DOE tells power firms to defer collection of payments for one month
Published March 21, 2020, 12:02 AM By Myrna M. Velasco
https://business.mb.com.ph/2020/03/21/doe-tells-power-firms-to-defer-collection-of-payments-for-one-month/
Energy Secretary Alfonso G. Cusi has directed all players in the power industry to defer collection of financial obligations of their customers or off-takers (capacity purchases) in view of the month-long lockdown enforced for Metro Manila and the rest of Luzon.
The energy chief issued a memorandum on this plea to all public and private firms in the power sector given the ongoing community quarantine that will last until April 14 in Metro Manila.
In Cusi’s directive, he instructed fuel and energy resource suppliers to generation companies nationwide “to extend the payment of obligations for 30 days from April 14, 2020.”
He said that such shall cover payments to coal suppliers of electric generating plants, as well as those that have been supplying diesel, bunker-C and lubricants to power facilities.
The same order applies to resource suppliers, such as steam for geothermal plants; and natural gas for those that have supply off-take from the Malampaya gas production facility.
That rule on extension of payment, he indicated, shall also be applied to state-run firms Power Sector Assets and Liabilities Management Corporation (PSALM), National Power Corporation, National Transmission Corporation and the Independent Electricity Market Corporation of the Philippines.
Conversely, Cusi has ordered the immediate remittance of the financial benefits to local government units (LGUs) hosting power projects and energy resource developments so they could use the funds to help their constituents as the country copes with the health crisis currently pummeling it.
He said an order on the fund release has already been issued recently – and the money to be funneled just needs to be sourced from the trust account which is now ready.
Cusi similarly sought the imprimatur of the LGU-hosts of energy facilities “to extend the payment deadline for applicable local taxes, fees or charges,” and for the lessors of land-sites for energy facilities “to extend payment of rentals for 30 days from April 14, 2020.”
“Energy services must be available 24/7 for everyone, most especially our frontline heroes who are risking their lives daily for the benefit of our fellow countrymen,” the energy chief stressed.
He qualified that the new memorandum issued on the payment deferment “is an additional measure to help keep the energy sector, as well as our stakeholders afloat during this time.”
Energy Secretary Alfonso G. Cusi has directed all players in the power industry to defer collection of financial obligations of their customers or off-takers (capacity purchases) in view of the month-long lockdown enforced for Metro Manila and the rest of Luzon.
The energy chief issued a memorandum on this plea to all public and private firms in the power sector given the ongoing community quarantine that will last until April 14 in Metro Manila.
In Cusi’s directive, he instructed fuel and energy resource suppliers to generation companies nationwide “to extend the payment of obligations for 30 days from April 14, 2020.”
He said that such shall cover payments to coal suppliers of electric generating plants, as well as those that have been supplying diesel, bunker-C and lubricants to power facilities.
The same order applies to resource suppliers, such as steam for geothermal plants; and natural gas for those that have supply off-take from the Malampaya gas production facility.
That rule on extension of payment, he indicated, shall also be applied to state-run firms Power Sector Assets and Liabilities Management Corporation (PSALM), National Power Corporation, National Transmission Corporation and the Independent Electricity Market Corporation of the Philippines.
Conversely, Cusi has ordered the immediate remittance of the financial benefits to local government units (LGUs) hosting power projects and energy resource developments so they could use the funds to help their constituents as the country copes with the health crisis currently pummeling it.
He said an order on the fund release has already been issued recently – and the money to be funneled just needs to be sourced from the trust account which is now ready.
Cusi similarly sought the imprimatur of the LGU-hosts of energy facilities “to extend the payment deadline for applicable local taxes, fees or charges,” and for the lessors of land-sites for energy facilities “to extend payment of rentals for 30 days from April 14, 2020.”
“Energy services must be available 24/7 for everyone, most especially our frontline heroes who are risking their lives daily for the benefit of our fellow countrymen,” the energy chief stressed.
He qualified that the new memorandum issued on the payment deferment “is an additional measure to help keep the energy sector, as well as our stakeholders afloat during this time.”
https://business.mb.com.ph/2020/03/21/doe-tells-power-firms-to-defer-collection-of-payments-for-one-month/
Energy Secretary Alfonso G. Cusi has directed all players in the power industry to defer collection of financial obligations of their customers or off-takers (capacity purchases) in view of the month-long lockdown enforced for Metro Manila and the rest of Luzon.
The energy chief issued a memorandum on this plea to all public and private firms in the power sector given the ongoing community quarantine that will last until April 14 in Metro Manila.
In Cusi’s directive, he instructed fuel and energy resource suppliers to generation companies nationwide “to extend the payment of obligations for 30 days from April 14, 2020.”
He said that such shall cover payments to coal suppliers of electric generating plants, as well as those that have been supplying diesel, bunker-C and lubricants to power facilities.
The same order applies to resource suppliers, such as steam for geothermal plants; and natural gas for those that have supply off-take from the Malampaya gas production facility.
That rule on extension of payment, he indicated, shall also be applied to state-run firms Power Sector Assets and Liabilities Management Corporation (PSALM), National Power Corporation, National Transmission Corporation and the Independent Electricity Market Corporation of the Philippines.
Conversely, Cusi has ordered the immediate remittance of the financial benefits to local government units (LGUs) hosting power projects and energy resource developments so they could use the funds to help their constituents as the country copes with the health crisis currently pummeling it.
He said an order on the fund release has already been issued recently – and the money to be funneled just needs to be sourced from the trust account which is now ready.
Cusi similarly sought the imprimatur of the LGU-hosts of energy facilities “to extend the payment deadline for applicable local taxes, fees or charges,” and for the lessors of land-sites for energy facilities “to extend payment of rentals for 30 days from April 14, 2020.”
“Energy services must be available 24/7 for everyone, most especially our frontline heroes who are risking their lives daily for the benefit of our fellow countrymen,” the energy chief stressed.
He qualified that the new memorandum issued on the payment deferment “is an additional measure to help keep the energy sector, as well as our stakeholders afloat during this time.”
Energy Secretary Alfonso G. Cusi has directed all players in the power industry to defer collection of financial obligations of their customers or off-takers (capacity purchases) in view of the month-long lockdown enforced for Metro Manila and the rest of Luzon.
The energy chief issued a memorandum on this plea to all public and private firms in the power sector given the ongoing community quarantine that will last until April 14 in Metro Manila.
In Cusi’s directive, he instructed fuel and energy resource suppliers to generation companies nationwide “to extend the payment of obligations for 30 days from April 14, 2020.”
He said that such shall cover payments to coal suppliers of electric generating plants, as well as those that have been supplying diesel, bunker-C and lubricants to power facilities.
The same order applies to resource suppliers, such as steam for geothermal plants; and natural gas for those that have supply off-take from the Malampaya gas production facility.
That rule on extension of payment, he indicated, shall also be applied to state-run firms Power Sector Assets and Liabilities Management Corporation (PSALM), National Power Corporation, National Transmission Corporation and the Independent Electricity Market Corporation of the Philippines.
Conversely, Cusi has ordered the immediate remittance of the financial benefits to local government units (LGUs) hosting power projects and energy resource developments so they could use the funds to help their constituents as the country copes with the health crisis currently pummeling it.
He said an order on the fund release has already been issued recently – and the money to be funneled just needs to be sourced from the trust account which is now ready.
Cusi similarly sought the imprimatur of the LGU-hosts of energy facilities “to extend the payment deadline for applicable local taxes, fees or charges,” and for the lessors of land-sites for energy facilities “to extend payment of rentals for 30 days from April 14, 2020.”
“Energy services must be available 24/7 for everyone, most especially our frontline heroes who are risking their lives daily for the benefit of our fellow countrymen,” the energy chief stressed.
He qualified that the new memorandum issued on the payment deferment “is an additional measure to help keep the energy sector, as well as our stakeholders afloat during this time.”
DOE eases restrictions on Malamapaya operations
Published March 21, 2020, 12:02 AM By Myrna M. Velasco
https://business.mb.com.ph/2020/03/21/doe-eases-restrictions-on-malamapaya-operations/
With concerns sounded off by the operator of the country’s Malampaya gas production facility, the Department of Energy (DOE) indicated that it is coordinating with Malacanang and the law enforcement agencies – primarily the Philippine National Police (PNP) — on easing restrictions that hobble the operation of the gas field.
The operational predicaments raised by Shell Philippines Exploration B.V. (SPEX) include “access restriction of critical operational and engineering staff and contractors, including vehicles used for transport purposes in the National Capital Region,” according to the energy department.
The other concerns delve with the continuation of operations of supply base in Batangas port; the marine supply vessels and other vessels that berth in Palawan and Batangas; as well as the need for unhindered crew change cycles of offshore personnel underpinning operations at the Malampaya platform.
Within the month-long quarantine enforced for Metro Manila and the rest of Luzon, the Malampaya gas field is among the critical energy facilities that shall be assured of unimpeded operations given that it is the fuel source of roughly 3,211 megawatts of gas-fired electric generating facilities in the county.
At this stage, the energy department said it also sought arrangements with relevant local government units “to exempt the delivery of goods and the movement of SPEX’s personnel from the lockdown, given the major role of Malampaya in providing power supply to the Luzon grid.”
The chaotic coordination between the various executive departments of the government, the law enforcement agencies that have been manning checkpoints as well as the LGUs have resulted in hampered deliveries of vital energy commodities and services in the past days.
Confusion likewise ensued in the movement of key personnel comprising the work force of critical energy facilities – such as in oil retail networks, storage facilities and refineries; as well as in power plants.
For the Malampaya field, Energy Secretary Alfonso G. Cusi said “we call on for the full support of various government agencies, as well as our service contractors, as we fulfill our mandate to provide reliable power services to our people.”’
The energy chief noted that the energy department “is always open and ready to address all the concerns of our stakeholders.”
As of yesterday players in the energy sector are still complaining about the lack of systematic coordination among relevant government agencies; and the baffling dearth of comprehension of people on the ground as to how the country could suffer if energy services and commodities would not be allowed to move seamlessly.
https://business.mb.com.ph/2020/03/21/doe-eases-restrictions-on-malamapaya-operations/
With concerns sounded off by the operator of the country’s Malampaya gas production facility, the Department of Energy (DOE) indicated that it is coordinating with Malacanang and the law enforcement agencies – primarily the Philippine National Police (PNP) — on easing restrictions that hobble the operation of the gas field.
The operational predicaments raised by Shell Philippines Exploration B.V. (SPEX) include “access restriction of critical operational and engineering staff and contractors, including vehicles used for transport purposes in the National Capital Region,” according to the energy department.
The other concerns delve with the continuation of operations of supply base in Batangas port; the marine supply vessels and other vessels that berth in Palawan and Batangas; as well as the need for unhindered crew change cycles of offshore personnel underpinning operations at the Malampaya platform.
Within the month-long quarantine enforced for Metro Manila and the rest of Luzon, the Malampaya gas field is among the critical energy facilities that shall be assured of unimpeded operations given that it is the fuel source of roughly 3,211 megawatts of gas-fired electric generating facilities in the county.
At this stage, the energy department said it also sought arrangements with relevant local government units “to exempt the delivery of goods and the movement of SPEX’s personnel from the lockdown, given the major role of Malampaya in providing power supply to the Luzon grid.”
The chaotic coordination between the various executive departments of the government, the law enforcement agencies that have been manning checkpoints as well as the LGUs have resulted in hampered deliveries of vital energy commodities and services in the past days.
Confusion likewise ensued in the movement of key personnel comprising the work force of critical energy facilities – such as in oil retail networks, storage facilities and refineries; as well as in power plants.
For the Malampaya field, Energy Secretary Alfonso G. Cusi said “we call on for the full support of various government agencies, as well as our service contractors, as we fulfill our mandate to provide reliable power services to our people.”’
The energy chief noted that the energy department “is always open and ready to address all the concerns of our stakeholders.”
As of yesterday players in the energy sector are still complaining about the lack of systematic coordination among relevant government agencies; and the baffling dearth of comprehension of people on the ground as to how the country could suffer if energy services and commodities would not be allowed to move seamlessly.
Energy source on nature’s whim
Published March 21, 2020, 12:02 AM By Myrna M. Velasco
https://business.mb.com.ph/2020/03/21/energy-source-on-natures-whim/
Unequivocally, renewable energy (RE) and other clean energy technologies are flourishing energy sources that are going mainstream – not just capturing the hearts of climate change risk-averse project developers, corporate shareholders and advocates, but also the attention of woke consumers who have deep convictions to care not just for environment’s health but for the welfare of the future generation.
For those in the business sector in general – and the energy sector in particular – this has been bringing pressure to shift away from fossil fuels into ‘green energy’ technologies.
In the case of the Philippines, there are conflicting paradigms that have been provoking intensified debates – on whether this country which is recurrently slumping into power supply crisis situations could really get out from that conundrum and will join the world’s low carbon investments pathway?
And for energy sources perceived to be generally dependent on nature’s whim, instead of human’s demand for power as needed – because no one can accurately predict really when the sun shines and when the wind blows — how can the perfect-fit solutions and innovations be sorted out without the usual distress that these might be coming at higher costs?
A call to action to reverse climate change
Federico R. Lopez, chairman of energy firm First Gen Corporation as well as the Lopez group’s First Philippine Holdings Corporation, has been going great guns to become the conscience of business as well as the voice of reason in the mystifying journey of lowering the energy sector’s carbon emissions.
In his call to co-corporates as well as financial institutions and banks for urgent action, Lopez highlighted this diegesis (not a plot in a movie but a real life scenario for the world): “many of the permafrost areas (like the Antarctic) known to have melted only inches a year are now subject to ‘abrupt thaws’ as rapid as 10 feet in days or weeks,” with him stressing “the fact that we are a coastal dwelling and archipelagic nation, the warming Antarctic should worry us even more.”
The Lopez group of companies – which has been leaning generally on clean technologies on its energy investments and even on usage – has a ‘close to home’ reference when it comes to the actual peril of natural disasters – as its geothermal power plants in Leyte had been literally at the ‘eye of the storm’ when death-dealing super typhoon ‘Yolanda’ (known internationally as ‘Haiyan’) monstrously walloped the country in November 2013. Other than geothermal, First Gen and its subsidiaries’ investments (including that of Energy Development Corporation) are all on the RE and clean tech genres: natural gas (of which carbon emissions are still way lower than coal and diesel or bunker-C fuels); hydro, wind, and solar facilities.
“Every decision we make must consider the betterment of all stakeholders. It no longer works the other way around if you consider shareholders the priority. I believe enlightened shareholders also realize that there are no jobs, profits or even remnants of shareholder value on a dead planet,” Lopez enthused.
Convinced that the energy sector and the Philippine economy in general can still track a pathway that will decouple viable economic aspirations against escalating carbon footprints, Lopez said “it’s high time we rethink, reimagine, redesign and rebuild how our world works. It’s a paradigm shift like the world has never seen before.”
The measure of sustainability and a shift to low carbon world, according to Lopez, cuts across array of business ethos and lifestyle changes, such as: how we get our energy; the design of our cities, buildings and homes; the materials we use; what we eat and how we grow our food; how we handle our waste; how we use and recycle water; our transport systems and what powers them; as well as words like regenerative agriculture, permaculture, the circular economy, cradle to cradle and net positive buildings must become the new normal.
Electricity in a box
To be fair, there is a desire for many players in the energy sector to really take investment shifts, but there are gigantic hurdles confronting them – including the intermittency of renewables like solar and wind; the feedstock sustainability concern for biomass facilities; the deteriorating resource that could be extracted from reservoirs for geothermal; or the ‘social dislocation’ and cyclical generation that hydro facilities render.
At any rate in the hydro sector, pumped storage is already gaining traction as a “winning technology”, hence, its deployment in the Philippines has also been generating a lot of interest.
Experts opine that pumped storage hydroelectricity will typically be a good match for what are seen as generally large gaps in wind generation – especially at this time when utility scale battery energy storage (BES) technologies, or what are deemed “electricity in a box” are still not considered commercially viable.
Lopez, for his part, has also pitched that while “large battery systems remain uneconomical in solving the intermittency of RE plants, First Gen’s natural gas-fired power plants will remain ‘the best alternative’ because of their fast ramp-up capability.”
He acknowledged though that gas plants are still fossil fuels with greenhouse gas emissions, so the future investment course that the Lopez group has been building on will be the eventual phase down, and further down could be a phase-out “as soon as the renewables-batteries combinations become economically feasible.”
Lopez cited that one possibility could also be for its gas plants “to be powered by much cleaner hydrogen in the future when and if this becomes possible.”
To date, the discourse around the next wave of RE investments is still on concerns of their on-and-off generation; and how the proposed ‘green energy tariff” could viably underpin the country’s Renewable Portfolio Standards (or the requirement for distribution utilities to source prescribed percentage of their supply from RE capacities at a rate that will be growing incrementally on a yearly basis) – so all Filipinos will in time champion the desire to turn this country into a ‘mecca’ of green energy.
https://business.mb.com.ph/2020/03/21/energy-source-on-natures-whim/
Unequivocally, renewable energy (RE) and other clean energy technologies are flourishing energy sources that are going mainstream – not just capturing the hearts of climate change risk-averse project developers, corporate shareholders and advocates, but also the attention of woke consumers who have deep convictions to care not just for environment’s health but for the welfare of the future generation.
For those in the business sector in general – and the energy sector in particular – this has been bringing pressure to shift away from fossil fuels into ‘green energy’ technologies.
In the case of the Philippines, there are conflicting paradigms that have been provoking intensified debates – on whether this country which is recurrently slumping into power supply crisis situations could really get out from that conundrum and will join the world’s low carbon investments pathway?
And for energy sources perceived to be generally dependent on nature’s whim, instead of human’s demand for power as needed – because no one can accurately predict really when the sun shines and when the wind blows — how can the perfect-fit solutions and innovations be sorted out without the usual distress that these might be coming at higher costs?
A call to action to reverse climate change
Federico R. Lopez, chairman of energy firm First Gen Corporation as well as the Lopez group’s First Philippine Holdings Corporation, has been going great guns to become the conscience of business as well as the voice of reason in the mystifying journey of lowering the energy sector’s carbon emissions.
In his call to co-corporates as well as financial institutions and banks for urgent action, Lopez highlighted this diegesis (not a plot in a movie but a real life scenario for the world): “many of the permafrost areas (like the Antarctic) known to have melted only inches a year are now subject to ‘abrupt thaws’ as rapid as 10 feet in days or weeks,” with him stressing “the fact that we are a coastal dwelling and archipelagic nation, the warming Antarctic should worry us even more.”
The Lopez group of companies – which has been leaning generally on clean technologies on its energy investments and even on usage – has a ‘close to home’ reference when it comes to the actual peril of natural disasters – as its geothermal power plants in Leyte had been literally at the ‘eye of the storm’ when death-dealing super typhoon ‘Yolanda’ (known internationally as ‘Haiyan’) monstrously walloped the country in November 2013. Other than geothermal, First Gen and its subsidiaries’ investments (including that of Energy Development Corporation) are all on the RE and clean tech genres: natural gas (of which carbon emissions are still way lower than coal and diesel or bunker-C fuels); hydro, wind, and solar facilities.
“Every decision we make must consider the betterment of all stakeholders. It no longer works the other way around if you consider shareholders the priority. I believe enlightened shareholders also realize that there are no jobs, profits or even remnants of shareholder value on a dead planet,” Lopez enthused.
Convinced that the energy sector and the Philippine economy in general can still track a pathway that will decouple viable economic aspirations against escalating carbon footprints, Lopez said “it’s high time we rethink, reimagine, redesign and rebuild how our world works. It’s a paradigm shift like the world has never seen before.”
The measure of sustainability and a shift to low carbon world, according to Lopez, cuts across array of business ethos and lifestyle changes, such as: how we get our energy; the design of our cities, buildings and homes; the materials we use; what we eat and how we grow our food; how we handle our waste; how we use and recycle water; our transport systems and what powers them; as well as words like regenerative agriculture, permaculture, the circular economy, cradle to cradle and net positive buildings must become the new normal.
Electricity in a box
To be fair, there is a desire for many players in the energy sector to really take investment shifts, but there are gigantic hurdles confronting them – including the intermittency of renewables like solar and wind; the feedstock sustainability concern for biomass facilities; the deteriorating resource that could be extracted from reservoirs for geothermal; or the ‘social dislocation’ and cyclical generation that hydro facilities render.
At any rate in the hydro sector, pumped storage is already gaining traction as a “winning technology”, hence, its deployment in the Philippines has also been generating a lot of interest.
Experts opine that pumped storage hydroelectricity will typically be a good match for what are seen as generally large gaps in wind generation – especially at this time when utility scale battery energy storage (BES) technologies, or what are deemed “electricity in a box” are still not considered commercially viable.
Lopez, for his part, has also pitched that while “large battery systems remain uneconomical in solving the intermittency of RE plants, First Gen’s natural gas-fired power plants will remain ‘the best alternative’ because of their fast ramp-up capability.”
He acknowledged though that gas plants are still fossil fuels with greenhouse gas emissions, so the future investment course that the Lopez group has been building on will be the eventual phase down, and further down could be a phase-out “as soon as the renewables-batteries combinations become economically feasible.”
Lopez cited that one possibility could also be for its gas plants “to be powered by much cleaner hydrogen in the future when and if this becomes possible.”
To date, the discourse around the next wave of RE investments is still on concerns of their on-and-off generation; and how the proposed ‘green energy tariff” could viably underpin the country’s Renewable Portfolio Standards (or the requirement for distribution utilities to source prescribed percentage of their supply from RE capacities at a rate that will be growing incrementally on a yearly basis) – so all Filipinos will in time champion the desire to turn this country into a ‘mecca’ of green energy.
Subscribe to:
Posts (Atom)