By Lenie Lectura January 4, 2021
https://businessmirror.com.ph/2021/01/04/erc-rejects-fit-rate-for-ocean-technology/
The Energy Regulatory Commission (ERC) denied the petition filed by the National Renewable Energy Board (NREB) for feed-in-tariff (FIT) for electricity generated from ocean energy resources.
NREB is the body tasked by the Renewable Energy Act of 2008 to recommend policies, rules and standards to govern the implementation of the law, which granted fiscal and non-fiscal incentives to RE projects.
The ERC instead directed NREB to file a separate petition for a new ocean FIT rate based on Tidal In-stream Energy Conversion Technology, which is the predominant Ocean Technology in the country.
“Majority of ocean power projects awarded with service contracts by the Department of Energy [DOE] uses Tidal In-stream Energy Conversion.
The Commission, therefore, found it reasonable to use the said technology, instead of the Ocean Thermal Energy Conversion [OTEC], as the representative project for the determination of the FIT rate for Ocean Technology, pursuant to Section 5 of the FIT Rules,” ERC Chairperson Agnes VST Devanadera said.
The ERC recognized that there is more information available on the tidal in-stream energy conversion technology which can be the basis for the calculation of the initial FIT for ocean energy, instead of OTEC whose operations have not yet reached commercial scale.
The ERC previously deferred the approval of the FIT for ocean technology when it issued its decision on the FIT rates in 2012 because NREB proposed an OTEC as the representative project and there was no OTEC plant in commercial operation yet at that time, and only a handful of pilot projects have been launched in the world.
Monday, January 4, 2021
DOE to prioritize power rate reduction
Published January 4, 2021, 7:00 AM by Myrna M. Velasco
https://mb.com.ph/2021/01/04/doe-to-prioritize-power-rate-reduction/
“Power rate reduction” tops the 2021 to-do list of the Department of Energy (DOE) to improve the attractiveness of the Philippines as an investment destination for manufacturers, who have been discouraged by the prohibitive power cost in the country.
Energy Secretary Alfonso G. Cusi told reporters that he formally sent a correspondence to the Department of Trade and Industry (DTI), so the DOE can be apprised of the specific demand of investors when it comes to making power rates affordable and competitive relative to the facet of their operations.
“I have a letter to the DTI. I said: tell me what are the things the prospective manufacturers are looking at in our country – in the energy sector,” the energy chief narrated.
Cusi said he also brought up that “power rate reduction agenda’ with the economic cluster of the Cabinet, so the entire Duterte administration could work together in achieving the target.
“There are a lot of factors why our tariff is higher than the other countries, but we need to find ways to make our tariff competitive, so we can attract the manufacturers to locate in our country,” the energy chief noted.
Cusi acknowledged that the Philippines has been losing out to neighbor-countries because of an array of concerns raised by investors – including labor laws in the country, hurdles in policy implementations, weak infrastructure and logistical support to businesses, as well as expensive electricity rates.
“We have to promote – this pandemic is really a problem, but we have to look at it on opportunities for our country to be competitive, and it’s not only energy…What are our problems? Our high energy tariffs, our labor laws, our policy implementations, our logistics cost. As far as the energy issue is concerned, I’m willing to find ways to make this competitive for manufacturers,” the DOE chief expounded.
Last December 23, he indicated that the energy department called for a meeting with other relevant government agencies so they can harmonize policies and their implementation for the energy sector to flourish – not just in bringing down electricity tariffs especially for businesses, but also in ensuring ample supply and efficient reserves in the power system.
“We invited different agencies under DOE for updating of policies, we just have to make sure that all the policies of the different agencies are aligned,” Cusi stressed.
It is worth noting that intermittent power supply is a major disenchantment to investors because this will not only increase their operating costs, but it could also jeopardize their overall production line.
Cusi opined that stepping up efforts on enticing new manufacturing firm-locators in the country would be paramount, because these are the investors who would be able to provide long-term employment opportunities for the Filipino people, especially the millions displaced in the workplace by the pandemic.
“We just need to find ways, make our country competitive because we need more stable employment for our people,” he pointed out.
And while power prices may not be brought down immediately, one model the energy department is exploring is the grant of preferential tariff to manufacturing firms – similar to a deal carried out with Texas Instruments in Baguio, which is under the supervision of the Philippine Economic Zone Authority.
“Texas Instruments had special arrangement so that it will have its target (electricity) tariff, so we’re looking into it, how we will replicate that,” Cusi said.
https://mb.com.ph/2021/01/04/doe-to-prioritize-power-rate-reduction/
“Power rate reduction” tops the 2021 to-do list of the Department of Energy (DOE) to improve the attractiveness of the Philippines as an investment destination for manufacturers, who have been discouraged by the prohibitive power cost in the country.
Energy Secretary Alfonso G. Cusi told reporters that he formally sent a correspondence to the Department of Trade and Industry (DTI), so the DOE can be apprised of the specific demand of investors when it comes to making power rates affordable and competitive relative to the facet of their operations.
“I have a letter to the DTI. I said: tell me what are the things the prospective manufacturers are looking at in our country – in the energy sector,” the energy chief narrated.
Cusi said he also brought up that “power rate reduction agenda’ with the economic cluster of the Cabinet, so the entire Duterte administration could work together in achieving the target.
“There are a lot of factors why our tariff is higher than the other countries, but we need to find ways to make our tariff competitive, so we can attract the manufacturers to locate in our country,” the energy chief noted.
Cusi acknowledged that the Philippines has been losing out to neighbor-countries because of an array of concerns raised by investors – including labor laws in the country, hurdles in policy implementations, weak infrastructure and logistical support to businesses, as well as expensive electricity rates.
“We have to promote – this pandemic is really a problem, but we have to look at it on opportunities for our country to be competitive, and it’s not only energy…What are our problems? Our high energy tariffs, our labor laws, our policy implementations, our logistics cost. As far as the energy issue is concerned, I’m willing to find ways to make this competitive for manufacturers,” the DOE chief expounded.
Last December 23, he indicated that the energy department called for a meeting with other relevant government agencies so they can harmonize policies and their implementation for the energy sector to flourish – not just in bringing down electricity tariffs especially for businesses, but also in ensuring ample supply and efficient reserves in the power system.
“We invited different agencies under DOE for updating of policies, we just have to make sure that all the policies of the different agencies are aligned,” Cusi stressed.
It is worth noting that intermittent power supply is a major disenchantment to investors because this will not only increase their operating costs, but it could also jeopardize their overall production line.
Cusi opined that stepping up efforts on enticing new manufacturing firm-locators in the country would be paramount, because these are the investors who would be able to provide long-term employment opportunities for the Filipino people, especially the millions displaced in the workplace by the pandemic.
“We just need to find ways, make our country competitive because we need more stable employment for our people,” he pointed out.
And while power prices may not be brought down immediately, one model the energy department is exploring is the grant of preferential tariff to manufacturing firms – similar to a deal carried out with Texas Instruments in Baguio, which is under the supervision of the Philippine Economic Zone Authority.
“Texas Instruments had special arrangement so that it will have its target (electricity) tariff, so we’re looking into it, how we will replicate that,” Cusi said.
PNOC-RC not closing shop – Cusi
Published January 4, 2021, 6:30 AM by Myrna M. Velasco
https://mb.com.ph/2021/01/04/pnoc-rc-not-closing-shop-cusi/
State-run subsidiary Philippine National Oil Company-Renewables Corporation (PNOC-RC) is not winding down operations and is not ceasing corporate existence, according to Energy Secretary Alfonso G. Cusi.
That was his pronouncement despite earlier calls of some lawmakers for the government-owned firm to close shop, with the energy chief noting that there is no mandate laid down by the Governance Commission for Government-Owned and Controlled Corporations (GCG) leading to PNOC-RC’s shutdown.
The energy chief nevertheless acknowledged that while PNOC-RC will have to continue operating, it would judiciously need to shift strategy when it comes to the investments it will be pursuing.
PNOC-RC is presently advancing multitudes of projects in solar rooftop installations, but Cusi reckoned this may not be as viable as it can get for a state-owned company – especially on the sphere of competition versus private sector players.
“It’s difficult for it (PNOC-RC) to be competitive in solar – because private sector players could come up with faster decisions and they could also implement projects faster and more aggressively,” Cusi pointed out.
He cited that for example, if a client would ask for a discount, a government-owned firm like PNOC-RC cannot just decide on that immediately because it will need to go through the usual layers of approvals first – whereas, in the case of a private sector player, it can make up its mind on that expeditiously.
“PNOC-RC could have a tough time competing with private companies – not that the private sector is better, but the problem with government is bureaucratic process, that’s why it’s difficult for PNOC-RC to catch up especially on investment decision-making,” he said.
Given such hurdle, Cusi proposed that PNOC-RC must instead re-focus its investment prospects on new technologies – including the realm of research and development (R&D) that could underpin the deployment of emerging energy technologies.
“What’s needed is: it has to look at the new technologies. Perhaps, for it to help on research and development – paving the way for the private investors, that’s the role of government. So would PNOC-RC be able to help? Yes, it can in the development of new technologies and in the creation of a new standard for private operators to follow,” the energy chief emphasized.
Further, in the forthcoming green energy auction for renewable energy under the Renewable Portfolio Standards (RPS) policy, Cusi noted that PNOC-RC might be able to support the program by exploring means how to reduce the cost of RE capacity turning up from that bid process.
“In this green energy auction, PNOC-RC can help the country – they can help a lot if they have certain projects that will really push the private sector to be more competitive and if they could price low to really bring down the rate,” he explained.
https://mb.com.ph/2021/01/04/pnoc-rc-not-closing-shop-cusi/
State-run subsidiary Philippine National Oil Company-Renewables Corporation (PNOC-RC) is not winding down operations and is not ceasing corporate existence, according to Energy Secretary Alfonso G. Cusi.
That was his pronouncement despite earlier calls of some lawmakers for the government-owned firm to close shop, with the energy chief noting that there is no mandate laid down by the Governance Commission for Government-Owned and Controlled Corporations (GCG) leading to PNOC-RC’s shutdown.
The energy chief nevertheless acknowledged that while PNOC-RC will have to continue operating, it would judiciously need to shift strategy when it comes to the investments it will be pursuing.
PNOC-RC is presently advancing multitudes of projects in solar rooftop installations, but Cusi reckoned this may not be as viable as it can get for a state-owned company – especially on the sphere of competition versus private sector players.
“It’s difficult for it (PNOC-RC) to be competitive in solar – because private sector players could come up with faster decisions and they could also implement projects faster and more aggressively,” Cusi pointed out.
He cited that for example, if a client would ask for a discount, a government-owned firm like PNOC-RC cannot just decide on that immediately because it will need to go through the usual layers of approvals first – whereas, in the case of a private sector player, it can make up its mind on that expeditiously.
“PNOC-RC could have a tough time competing with private companies – not that the private sector is better, but the problem with government is bureaucratic process, that’s why it’s difficult for PNOC-RC to catch up especially on investment decision-making,” he said.
Given such hurdle, Cusi proposed that PNOC-RC must instead re-focus its investment prospects on new technologies – including the realm of research and development (R&D) that could underpin the deployment of emerging energy technologies.
“What’s needed is: it has to look at the new technologies. Perhaps, for it to help on research and development – paving the way for the private investors, that’s the role of government. So would PNOC-RC be able to help? Yes, it can in the development of new technologies and in the creation of a new standard for private operators to follow,” the energy chief emphasized.
Further, in the forthcoming green energy auction for renewable energy under the Renewable Portfolio Standards (RPS) policy, Cusi noted that PNOC-RC might be able to support the program by exploring means how to reduce the cost of RE capacity turning up from that bid process.
“In this green energy auction, PNOC-RC can help the country – they can help a lot if they have certain projects that will really push the private sector to be more competitive and if they could price low to really bring down the rate,” he explained.
DOE hits ‘very slow’ permitting process
Published January 4, 2021, 6:00 AM by Myrna M. Velasco
https://mb.com.ph/2021/01/04/doe-hits-very-slow-permitting-process/
The Department of Energy (DOE) has suspended its issuances of certificate of energy projects of national significance (CEPNS) blaming the very slow pace in securing permits and project implementations.
The CEPNS was mandated under Executive Order No. 30 that was issued by President Duterte in 2017.
Energy Secretary Alfonso G. Cusi lamented that out of the 149 approved projects with CEPNS, only 44 projects were able to complete their permits despite the streamlining of processes afforded under the Presidential order.
The energy chief stressed “we want to make sure that it is operating properly because out of the 149 projects – only 44 completed their permits. So what we’re saying is: why was it like that?”
Cusi nevertheless indicated that all of the EPNS-certified projects still continue to work on their requirements, which is still deemed by the department as a positive development.
He assured that the suspension of certifications would not affect the pending permitting applications of EPNS-approved projects; while the DOE evaluates the effectiveness of its EO 30 system. “All of them (project developers) continue to apply for additional requirements with different agencies,” the energy secretary qualified.
The array of approved “energy projects of national significance” or EPNS are: electric generating facilities – including renewable energy ventures; transmission line projects and substations; liquefied natural gas (LNG) import terminals; petroleum and coal resource exploration ventures; and power installations at the Small Power Utilities Group (SPUG) of state-run National Power Corporation.
On the possible continuity of EO 30 implementation for RE projects, Cusi noted “we’re just evaluating what has happened and what positive impact will it do to the development and increase in energy capacity. DOE is meeting with the other agencies evaluating it.”
As it stands today, Cusi noted that while the projects were given permitting leeway under EO 30, many of them have not fully exercised such prerogative in their applications for permits and in securing licenses.
EO 30 prescribes at least a month timeframe on the approval of energy projects, as long as the project sponsors submit complete set of requirements on the processing of their applications.
Part of the EO re-assessment, Cusi emphasized, will also be a shift to the Energy Virtual One-Stop Shop (EVOSS) system, which is a legislated policy on an online platform of streamlined processes of energy projects’ permitting.
“We have migrated them to EVOSS, so our review will not cause any delay. And in fact, we’re doing this to expedite the processing and permitting of energy projects,” Cusi explained.
https://mb.com.ph/2021/01/04/doe-hits-very-slow-permitting-process/
The Department of Energy (DOE) has suspended its issuances of certificate of energy projects of national significance (CEPNS) blaming the very slow pace in securing permits and project implementations.
The CEPNS was mandated under Executive Order No. 30 that was issued by President Duterte in 2017.
Energy Secretary Alfonso G. Cusi lamented that out of the 149 approved projects with CEPNS, only 44 projects were able to complete their permits despite the streamlining of processes afforded under the Presidential order.
The energy chief stressed “we want to make sure that it is operating properly because out of the 149 projects – only 44 completed their permits. So what we’re saying is: why was it like that?”
Cusi nevertheless indicated that all of the EPNS-certified projects still continue to work on their requirements, which is still deemed by the department as a positive development.
He assured that the suspension of certifications would not affect the pending permitting applications of EPNS-approved projects; while the DOE evaluates the effectiveness of its EO 30 system. “All of them (project developers) continue to apply for additional requirements with different agencies,” the energy secretary qualified.
The array of approved “energy projects of national significance” or EPNS are: electric generating facilities – including renewable energy ventures; transmission line projects and substations; liquefied natural gas (LNG) import terminals; petroleum and coal resource exploration ventures; and power installations at the Small Power Utilities Group (SPUG) of state-run National Power Corporation.
On the possible continuity of EO 30 implementation for RE projects, Cusi noted “we’re just evaluating what has happened and what positive impact will it do to the development and increase in energy capacity. DOE is meeting with the other agencies evaluating it.”
As it stands today, Cusi noted that while the projects were given permitting leeway under EO 30, many of them have not fully exercised such prerogative in their applications for permits and in securing licenses.
EO 30 prescribes at least a month timeframe on the approval of energy projects, as long as the project sponsors submit complete set of requirements on the processing of their applications.
Part of the EO re-assessment, Cusi emphasized, will also be a shift to the Energy Virtual One-Stop Shop (EVOSS) system, which is a legislated policy on an online platform of streamlined processes of energy projects’ permitting.
“We have migrated them to EVOSS, so our review will not cause any delay. And in fact, we’re doing this to expedite the processing and permitting of energy projects,” Cusi explained.
WESM Mindanao to start operations in Q2–IEMOP
By Lenie Lectura January 4, 2021
https://businessmirror.com.ph/2021/01/04/wesm-mindanao-to-start-operations-in-q2-iemop/
The Wholesale Electricity Spot Market (WESM) in Mindanao is finally pushing through within the second quarter of the year following the approval of a new price determination methodology (PDM) by the Energy Regulatory Commission (ERC).
“The approval will definitely finalize the Go Live date for the Luzon, Visayas and Mindanao WESM. With the approval of the PDM, definitely the final timeline can now be set. The target timeline is second quarter of 2021,” said Isidro Cacho, the chief corporate strategy and communications officer of the Independent Electricity Market Operator of the Philippines (IEMOP) in a text message.
IEMOP is the operator of WESM.
Cacho said the final date would be discussed this week with the power industry stakeholders, including the Department of Energy.
Last week, the ERC approved with modification, the Philippine Electricity Market Corp.’s (PEMC) application for a new PDM for the WESM.
“The new PDM provides amended features with regard to price determination and settlement in the WESM and consolidated the various pricing mechanisms which are currently contained in several issuances of the Commission,” said ERC Chairperson and CEO Agnes VST Devanadera.
The new PDM will also be used for the upcoming commercial operations of WESM in Mindanao, said the ERC.
The WESM in the Mindanao Grid was launched in June 2017. Back then, IEMOP was expecting the commercial operation to commence in December 2020. But improvements in the software system must take place before the WESM in Mindanao and the launch of the upgraded WESM design takes place.
The WESM is the country’s trading floor of electricity. It is a centralized venue for buyers and sellers to trade electricity as a commodity, where prices are based on actual use (demand) and availability (supply). WESM started commercial operations in the Luzon grid in June 2006 and in December of 2010 in the Visayas grid.
The adoption of the enhanced WESM design and operations provides, among others, a shorter dispatch interval of 5 minutes which will result in better pricing signals as it instantly reflects the changes in supply and demand, and potentially reduce the requirement for frequency regulation reserve which is beneficial to consumers.
“Projecting possible conditions in the next 5 minutes will result in a more accurate picture of the actual conditions as compared to projecting the possible market conditions in the next one hour.
Since regulating reserves are needed to address the fluctuations in supply and demand, lesser fluctuation brought about by better projection would mean lesser requirements for regulating reserve. Also, considering that customers pay for the procurement of regulating reserve, this would translate to lower costs for the customers,” Devanadera added.
The key features of the enhanced WESM design include shortening of scheduling and pricing intervals from 1 hour to 5 minutes; adoption of ex-ante only pricing; automatic re-runs when prices reflect constraint violations to provide timely disclosure of settlement-ready prices; and hour-ahead projections, in addition to the week-ahead and day-ahead projections, to facilitate commitment decisions of trading participants.
https://businessmirror.com.ph/2021/01/04/wesm-mindanao-to-start-operations-in-q2-iemop/
The Wholesale Electricity Spot Market (WESM) in Mindanao is finally pushing through within the second quarter of the year following the approval of a new price determination methodology (PDM) by the Energy Regulatory Commission (ERC).
“The approval will definitely finalize the Go Live date for the Luzon, Visayas and Mindanao WESM. With the approval of the PDM, definitely the final timeline can now be set. The target timeline is second quarter of 2021,” said Isidro Cacho, the chief corporate strategy and communications officer of the Independent Electricity Market Operator of the Philippines (IEMOP) in a text message.
IEMOP is the operator of WESM.
Cacho said the final date would be discussed this week with the power industry stakeholders, including the Department of Energy.
Last week, the ERC approved with modification, the Philippine Electricity Market Corp.’s (PEMC) application for a new PDM for the WESM.
“The new PDM provides amended features with regard to price determination and settlement in the WESM and consolidated the various pricing mechanisms which are currently contained in several issuances of the Commission,” said ERC Chairperson and CEO Agnes VST Devanadera.
The new PDM will also be used for the upcoming commercial operations of WESM in Mindanao, said the ERC.
The WESM in the Mindanao Grid was launched in June 2017. Back then, IEMOP was expecting the commercial operation to commence in December 2020. But improvements in the software system must take place before the WESM in Mindanao and the launch of the upgraded WESM design takes place.
The WESM is the country’s trading floor of electricity. It is a centralized venue for buyers and sellers to trade electricity as a commodity, where prices are based on actual use (demand) and availability (supply). WESM started commercial operations in the Luzon grid in June 2006 and in December of 2010 in the Visayas grid.
The adoption of the enhanced WESM design and operations provides, among others, a shorter dispatch interval of 5 minutes which will result in better pricing signals as it instantly reflects the changes in supply and demand, and potentially reduce the requirement for frequency regulation reserve which is beneficial to consumers.
“Projecting possible conditions in the next 5 minutes will result in a more accurate picture of the actual conditions as compared to projecting the possible market conditions in the next one hour.
Since regulating reserves are needed to address the fluctuations in supply and demand, lesser fluctuation brought about by better projection would mean lesser requirements for regulating reserve. Also, considering that customers pay for the procurement of regulating reserve, this would translate to lower costs for the customers,” Devanadera added.
The key features of the enhanced WESM design include shortening of scheduling and pricing intervals from 1 hour to 5 minutes; adoption of ex-ante only pricing; automatic re-runs when prices reflect constraint violations to provide timely disclosure of settlement-ready prices; and hour-ahead projections, in addition to the week-ahead and day-ahead projections, to facilitate commitment decisions of trading participants.
ERC approves new pricing methodology for WESM
Published January 3, 2021, 6:30 AM by Myrna M. Velasco
https://mb.com.ph/2021/01/03/erc-approves-new-pricing-methodology-for-wesm/
A new price determination methodology (PDM) has been instituted for the Wholesale Electricity Spot Market (WESM) in its shift to shorter five-minute trading interval that is targeted for enforcement middle of this year.
The Energy Regulatory Commission (ERC) approved the new pricing methodology based on the filing of the Philippine Electricity Market Corporation (PEMC), the governing body of the spot market.
As explained by ERC Chairperson Agnes T. Devanadera, “the new PDM provides amended features with regard to price determination and settlement in the WESM and consolidated the various pricing mechanisms which are currently contained in several issuances of the Commission.”
The new market management system (NMMS) or trading platform of the WESM will be migrating to a shorter trading interval by June 2021 – and this is expected to yield higher degree of efficiencies in the operations of the spot market.
For the trading participants, it will entail more intense form of competition that they will be confronted with; and in the process, it is expected that this will result in more competitive or cheaper rates for consumers.
In handing down its ruling for the modified PDM, the industry regulator noted that it primarily considered the “shortening of scheduling and pricing intervals from one-hour to five (5) minutes.”
The ERC also factored in several facets, such as the: adoption of ex-ante only pricing (based on forecast rather than actual trading results); automatic re-runs when prices reflect constraint violations to provide timely disclosure of settlement-ready prices; and then the hour-ahead projections, in addition to the week-ahead and day-ahead projections.
Such elements in the pricing mechanism for the WESM, according to the regulatory body, will “facilitate commitment decisions of trading participants” – which are generally the generation companies (GenCos) that have been offering their capacities in the spot market.
“The adoption of the enhanced WESM design and operations provides, among others, a shorter dispatch interval of five (5) minutes which will result to better pricing signals as it instantly reflects the changes in supply and demand, and potentially reduce the requirement of frequency regulation reserve which is beneficial to consumers,” the ERC stated.
Devanadera deemed that “projecting possible conditions in the next five (5) minutes will result in a more accurate picture of the actual conditions as compared to projecting the possible market conditions in the next one hour.”
She further explained that “since regulating reserves are needed to address the fluctuations in supply and demand, lesser fluctuation brought about by better projection would mean less requirements for regulating reserve,” – that is in reference to a power supply being procured to ensure power system reliability, so if there would be less capacity sourcing for that, this could translate to lower cost for consumers.
In the portended enforcement of automatic pricing re-runs, the ERC emphasized that this will set “correct pricing signals and timely publication of settlement-ready prices in real-time for efficiency and transparency in prices.”
The industry regulator expounded “with better pricing signals, congested areas that need additional local generation and transmission improvements and enhancements are identified and improved.” Consequently, the ERC highlighted that “lower congestion cost will result to lower resulting market prices which will redound to the benefit of the consumers.”
https://mb.com.ph/2021/01/03/erc-approves-new-pricing-methodology-for-wesm/
A new price determination methodology (PDM) has been instituted for the Wholesale Electricity Spot Market (WESM) in its shift to shorter five-minute trading interval that is targeted for enforcement middle of this year.
The Energy Regulatory Commission (ERC) approved the new pricing methodology based on the filing of the Philippine Electricity Market Corporation (PEMC), the governing body of the spot market.
As explained by ERC Chairperson Agnes T. Devanadera, “the new PDM provides amended features with regard to price determination and settlement in the WESM and consolidated the various pricing mechanisms which are currently contained in several issuances of the Commission.”
The new market management system (NMMS) or trading platform of the WESM will be migrating to a shorter trading interval by June 2021 – and this is expected to yield higher degree of efficiencies in the operations of the spot market.
For the trading participants, it will entail more intense form of competition that they will be confronted with; and in the process, it is expected that this will result in more competitive or cheaper rates for consumers.
In handing down its ruling for the modified PDM, the industry regulator noted that it primarily considered the “shortening of scheduling and pricing intervals from one-hour to five (5) minutes.”
The ERC also factored in several facets, such as the: adoption of ex-ante only pricing (based on forecast rather than actual trading results); automatic re-runs when prices reflect constraint violations to provide timely disclosure of settlement-ready prices; and then the hour-ahead projections, in addition to the week-ahead and day-ahead projections.
Such elements in the pricing mechanism for the WESM, according to the regulatory body, will “facilitate commitment decisions of trading participants” – which are generally the generation companies (GenCos) that have been offering their capacities in the spot market.
“The adoption of the enhanced WESM design and operations provides, among others, a shorter dispatch interval of five (5) minutes which will result to better pricing signals as it instantly reflects the changes in supply and demand, and potentially reduce the requirement of frequency regulation reserve which is beneficial to consumers,” the ERC stated.
Devanadera deemed that “projecting possible conditions in the next five (5) minutes will result in a more accurate picture of the actual conditions as compared to projecting the possible market conditions in the next one hour.”
She further explained that “since regulating reserves are needed to address the fluctuations in supply and demand, lesser fluctuation brought about by better projection would mean less requirements for regulating reserve,” – that is in reference to a power supply being procured to ensure power system reliability, so if there would be less capacity sourcing for that, this could translate to lower cost for consumers.
In the portended enforcement of automatic pricing re-runs, the ERC emphasized that this will set “correct pricing signals and timely publication of settlement-ready prices in real-time for efficiency and transparency in prices.”
The industry regulator expounded “with better pricing signals, congested areas that need additional local generation and transmission improvements and enhancements are identified and improved.” Consequently, the ERC highlighted that “lower congestion cost will result to lower resulting market prices which will redound to the benefit of the consumers.”
Meralco targets electrification of entire franchise area this year
Danessa Rivera (The Philippine Star) - January 3, 2021 - 12:00am
https://www.philstar.com/business/2021/01/03/2067743/meralco-targets-electrification-entire-franchise-area-year
MANILA, Philippines — Power distributor Manila Electric Co. (Meralco) is targeting to bring electricity to its entire franchise area by mid-2021.
Meralco senior vice president and head of networks Ronnie Aperocho said the company is spending P1.1 billion for the remaining projects under the Meralco Electrification Program (MEP).
Meralco will power up 559 remaining sites in the MEP, which are under Priority Project 2 and 3, with an estimated household count of 28,601.
As of end-September, Meralco has energized 233 sites while 143 sites are under construction. The company is working to power up the remaining 183 sites, which are on design and right-of-way (ROW) acquisition stages.
“Despite the quarantine, we remain committed to bring light to our unserved and underserved customers through the Meralco Electrification Program projects,” he said.
Aperocho said the MEP Priority 2 project was set for completion not later than end-2020 while the Priority 3 project is targeted for completion by June 2021.
“With the completion of these projects, Meralco would have already complied with 100 percent household electrification as envisioned by the Department of Energy and the Duterte administration,” he said.
Meralco previously set the 100 percent electrification of its franchise area in 2020. However, the lockdown imposed in the country delayed several projects.
In 2018, Energy Secretary Alfonso Cusi ordered Meralco to explain why power services do not reach far-flung areas within its franchise.
At that time, he said the DOE was reviewing identified areas for possible operations of third party electricity providers as part of its rural electrification program.
The country’s largest power distributor has not yet expanded its power distribution services to Isla Verde in Batangas and Cagbalete Island in Quezon, both of which are far-flung areas within its franchise area.
https://www.philstar.com/business/2021/01/03/2067743/meralco-targets-electrification-entire-franchise-area-year
MANILA, Philippines — Power distributor Manila Electric Co. (Meralco) is targeting to bring electricity to its entire franchise area by mid-2021.
Meralco senior vice president and head of networks Ronnie Aperocho said the company is spending P1.1 billion for the remaining projects under the Meralco Electrification Program (MEP).
Meralco will power up 559 remaining sites in the MEP, which are under Priority Project 2 and 3, with an estimated household count of 28,601.
As of end-September, Meralco has energized 233 sites while 143 sites are under construction. The company is working to power up the remaining 183 sites, which are on design and right-of-way (ROW) acquisition stages.
“Despite the quarantine, we remain committed to bring light to our unserved and underserved customers through the Meralco Electrification Program projects,” he said.
Aperocho said the MEP Priority 2 project was set for completion not later than end-2020 while the Priority 3 project is targeted for completion by June 2021.
“With the completion of these projects, Meralco would have already complied with 100 percent household electrification as envisioned by the Department of Energy and the Duterte administration,” he said.
Meralco previously set the 100 percent electrification of its franchise area in 2020. However, the lockdown imposed in the country delayed several projects.
In 2018, Energy Secretary Alfonso Cusi ordered Meralco to explain why power services do not reach far-flung areas within its franchise.
At that time, he said the DOE was reviewing identified areas for possible operations of third party electricity providers as part of its rural electrification program.
The country’s largest power distributor has not yet expanded its power distribution services to Isla Verde in Batangas and Cagbalete Island in Quezon, both of which are far-flung areas within its franchise area.
Aboitiz Power on track to double capacity
Danessa Rivera (The Philippine Star) - January 3, 2021 - 12:00am
https://www.philstar.com/business/2021/01/03/2067736/aboitiz-power-track-double-capacity
MANILA, Philippines — Aboitiz Power Corp. said it remains on track to more than double its capacity by 2030 despite the negative impact of the COVID-19 pandemic on the power sector.
The company said it is still set on significantly expanding its portfolio of renewable energy power plants in the next 10 years and by 2030, its capacity mix would have been transformed into an almost even thermal to Cleanergy ratio.
“Our targets in the next decade remain the same. We will continue to pursue a major shift in our energy mix by 2030, but while we remain focused on addressing the country’s energy trilemma of energy security, energy equity and environmental sustainability, we will be shifting the balance from ensuring low-cost energy to providing energy from more sustainable sources,” AboitizPower president and CEO Emmanuel Rubio said.
In April, the company announced its plan to double its capacity from 4,432 megawatts to 9,300 MW by 2029.
“We will leverage our learnings from the pandemic to ensure that we carry out our 10-year growth strategy efficiently, effectively and sustainably,” Rubio said.
The company official said AboitizPower would continue to be one of the largest players in the country with the largest installed capacity of renewable energy at 1,540 MW.
The company had high hopes for 2020 as it anticipated the realization of its growth strategy over the next decade.
But three months into what the firm thought would be a stellar year, the COVID-19 crisis brought about an unprecedented impact on the power company, forcing it to transition from significantly growing the business to keeping it afloat, and from expanding the organization to making necessary adjustments in its workforce.
Rubio said the power sector was impacted by the pandemic as seen in the significant decline in energy demand and consumption with the imposition of COVID-related lockdowns.
“Due to the decline in energy demand and consumption, our generation and distribution businesses were heavily affected,” he said.
The company has seen power demand increasing from the levels during the enhanced community quarantine period.
“The grids have already recovered as of the third week of November, but still lower versus last year,” Rubio said.
Despite all this, he said AboitizPower remains committed to advancing business and communities by continuing to provide reliable, reasonably priced, and responsibly produced power solutions even in the new normal.
https://www.philstar.com/business/2021/01/03/2067736/aboitiz-power-track-double-capacity
MANILA, Philippines — Aboitiz Power Corp. said it remains on track to more than double its capacity by 2030 despite the negative impact of the COVID-19 pandemic on the power sector.
The company said it is still set on significantly expanding its portfolio of renewable energy power plants in the next 10 years and by 2030, its capacity mix would have been transformed into an almost even thermal to Cleanergy ratio.
“Our targets in the next decade remain the same. We will continue to pursue a major shift in our energy mix by 2030, but while we remain focused on addressing the country’s energy trilemma of energy security, energy equity and environmental sustainability, we will be shifting the balance from ensuring low-cost energy to providing energy from more sustainable sources,” AboitizPower president and CEO Emmanuel Rubio said.
In April, the company announced its plan to double its capacity from 4,432 megawatts to 9,300 MW by 2029.
“We will leverage our learnings from the pandemic to ensure that we carry out our 10-year growth strategy efficiently, effectively and sustainably,” Rubio said.
The company official said AboitizPower would continue to be one of the largest players in the country with the largest installed capacity of renewable energy at 1,540 MW.
The company had high hopes for 2020 as it anticipated the realization of its growth strategy over the next decade.
But three months into what the firm thought would be a stellar year, the COVID-19 crisis brought about an unprecedented impact on the power company, forcing it to transition from significantly growing the business to keeping it afloat, and from expanding the organization to making necessary adjustments in its workforce.
Rubio said the power sector was impacted by the pandemic as seen in the significant decline in energy demand and consumption with the imposition of COVID-related lockdowns.
“Due to the decline in energy demand and consumption, our generation and distribution businesses were heavily affected,” he said.
The company has seen power demand increasing from the levels during the enhanced community quarantine period.
“The grids have already recovered as of the third week of November, but still lower versus last year,” Rubio said.
Despite all this, he said AboitizPower remains committed to advancing business and communities by continuing to provide reliable, reasonably priced, and responsibly produced power solutions even in the new normal.
DOE reviews proposal to hike RE capacity
Danessa Rivera (The Philippine Star) - January 2, 2021 - 12:00am
https://www.philstar.com/business/2021/01/02/2067564/doe-reviews-proposal-hike-re-capacity
MANILA, Philippines — The Department of Energy (DOE) is reviewing a proposal to increase renewable energy (RE) installations under the Renewable Portfolio Standards (RPS) policy to meet the RE targets.
“We’re still studying the increase percentage as proposed by National Renewable Energy Board (NREB),” DOE assistant secretary Redentor Delola said.
NREB, the advisory board tasked with the effective implementation of RE projects in the country, said the one percent annual increment in RE installations under the RPS would not be enough to reach RE targets.
RPS is a market-based policy that requires power distribution utilities (DUs), electric cooperatives, and retail electricity supplies (RES) to source an agreed portion of their energy supply from eligible renewable energy RE facilities.
It is among the measures under the Renewable Energy (RE) Act of 2008 to raise the renewable energy production and meet renewables targets. The country is targeting a 35 percent RE share in the power generation mix by 2030.
As of end-2019, renewables had a share of 28 percent in the country’s energy mix.
To reach the 2030 target, NREB is proposing an increase from one percent to 2.52 percent after 2022. The RPS level is currently set at one percent until 2022.
“They’re saying the one increment will not be able to reach the 35 percent target. So, we’re looking at the figures right now. As it stands, we’re still at the one percent increment annually because there’s no approval from the secretary to increase it to a higher percentage,” Delola said.
Earlier, AC Energy Inc. president and CEO Eric Francia also said the government must eventually raise the RPS target from just one percent to be able to meet the 35 percent RE share in 10 years.
“My hope is that over time, the government will increase that. At the current level of RPS which is at one percent annual increment, we will not get to the 35 percent share of RE output by 2030. We are currently at 21 percent,” he said.
“If we are serious to be at 35 percent, we agree with NREB that the one percent increment must go up to 2.5 percent by 2023 or 2024,” Francia said.
But DOE Secretary Alfonso Cusi said there are a number of applications filed with the agency to put up RE projects that will help the country speed up RE development.
“Apart from the 2,000 megawatts (MW) auction, RPS of one percent every year, there are other applications. I think there’s 8,500 MW of solar, wind, battery for competitive selection process (CSP) that is being processed now. That is not included in the auction, even not included in one percent of RPS. There are other RE increments that are being applied at the Renewable Energy Management Bureau (REMB),” he said.
He was referring to the green energy auction, set under the green energy tariff program policy, which will facilitate supply contracting by qualified suppliers with eligible customers under a competitive process.
The policy also lays down the green energy tariff which would “provide price signals on the commercial value of electricity generated from RE facilities,” which would be the basis of a benchmark rate for RE in the country.
The DOE has set the green energy auction for 2,000 MW in June 2021.
Currently, DOE Undersecretary Felix William Fuentebella said the REMB is finalizing the terms of reference (TOR) for the country’s first green energy auction.
Initially set at 2,000 MW, the DOE chief said the agency would definitely auction more RE capacity after the first round.
“We are prepared to increase. But rather than saying how much we’re going to increase it, let’s see first the output of the auction,” Cusi said.
https://www.philstar.com/business/2021/01/02/2067564/doe-reviews-proposal-hike-re-capacity
MANILA, Philippines — The Department of Energy (DOE) is reviewing a proposal to increase renewable energy (RE) installations under the Renewable Portfolio Standards (RPS) policy to meet the RE targets.
“We’re still studying the increase percentage as proposed by National Renewable Energy Board (NREB),” DOE assistant secretary Redentor Delola said.
NREB, the advisory board tasked with the effective implementation of RE projects in the country, said the one percent annual increment in RE installations under the RPS would not be enough to reach RE targets.
RPS is a market-based policy that requires power distribution utilities (DUs), electric cooperatives, and retail electricity supplies (RES) to source an agreed portion of their energy supply from eligible renewable energy RE facilities.
It is among the measures under the Renewable Energy (RE) Act of 2008 to raise the renewable energy production and meet renewables targets. The country is targeting a 35 percent RE share in the power generation mix by 2030.
As of end-2019, renewables had a share of 28 percent in the country’s energy mix.
To reach the 2030 target, NREB is proposing an increase from one percent to 2.52 percent after 2022. The RPS level is currently set at one percent until 2022.
“They’re saying the one increment will not be able to reach the 35 percent target. So, we’re looking at the figures right now. As it stands, we’re still at the one percent increment annually because there’s no approval from the secretary to increase it to a higher percentage,” Delola said.
Earlier, AC Energy Inc. president and CEO Eric Francia also said the government must eventually raise the RPS target from just one percent to be able to meet the 35 percent RE share in 10 years.
“My hope is that over time, the government will increase that. At the current level of RPS which is at one percent annual increment, we will not get to the 35 percent share of RE output by 2030. We are currently at 21 percent,” he said.
“If we are serious to be at 35 percent, we agree with NREB that the one percent increment must go up to 2.5 percent by 2023 or 2024,” Francia said.
But DOE Secretary Alfonso Cusi said there are a number of applications filed with the agency to put up RE projects that will help the country speed up RE development.
“Apart from the 2,000 megawatts (MW) auction, RPS of one percent every year, there are other applications. I think there’s 8,500 MW of solar, wind, battery for competitive selection process (CSP) that is being processed now. That is not included in the auction, even not included in one percent of RPS. There are other RE increments that are being applied at the Renewable Energy Management Bureau (REMB),” he said.
He was referring to the green energy auction, set under the green energy tariff program policy, which will facilitate supply contracting by qualified suppliers with eligible customers under a competitive process.
The policy also lays down the green energy tariff which would “provide price signals on the commercial value of electricity generated from RE facilities,” which would be the basis of a benchmark rate for RE in the country.
The DOE has set the green energy auction for 2,000 MW in June 2021.
Currently, DOE Undersecretary Felix William Fuentebella said the REMB is finalizing the terms of reference (TOR) for the country’s first green energy auction.
Initially set at 2,000 MW, the DOE chief said the agency would definitely auction more RE capacity after the first round.
“We are prepared to increase. But rather than saying how much we’re going to increase it, let’s see first the output of the auction,” Cusi said.
SMC Global Power expanding Masinloc coal plant by 630 MW
posted January 03, 2021 at 06:40 pm by Alena Mae S. Flores
https://manilastandard.net/business/power-technology/343479/smc-global-power-expanding-masinloc-coal-plant-by-630-mw.html
SMC Global Power Holdings, Inc., a unit of conglomerate San Miguel Corp., is pursuing the expansion of the Masinloc coal-fired power plant by 630 megawatts at a project cost of about P73 billion.
In documents submitted to the Department of Environment and Natural Resources, Masinloc Power Partners Co. Ltd, a unit of SMC Global, bared plans to expand the capacity of the power plant through the construction of units 4 and unit 5 capable of generating 315 MW and 315 MW of electricity, respectively.
MPPCL owns and operates the Masinloc coal-fired coal-fired power plants with Units 1, 2 and 3 in operation and Unit 4 under development at Barangay Bani, Masinloc, Zambales province.
MPPCL said the generated power from the units is delivered to the Luzon grid through two transmission lines running from Masinloc to the Kadampat substation. The plant’s site, meanwhile, has enough space to support the operation of an additional unit.
“In recent years, there has been an increasing demand for electricity, at the same time reducing carbon dioxide emission by adopting supercritical technology with higher steam pressure and temperature. To reduce CO2 emission and improve power generation, MPPCL has decided to utilize the same supercritical technology for Unit 5,” the company said.
MPPLC said smaller units were more popular and that the availability of a 315-MW size boiler and turbine had also increased in recent times, making it feasible to build such units at efficient cost.
It said the company is committed to cleaner energy generation wherever the opportunity occurs.
“Also, financial institutions are showing more interest in providing loans to supercritical units than subcritical units. It is getting difficult to justify investment in coal-fired power plant unless there is clear effort in reducing carbon dioxide emission by increasing plant efficiency by adopting higher steam pressure and temperature,” MPPCL said.
MPPCL decided to install unit 5 between the ash storage facility and unit 4. It said the estimated cost of the project of unit 4 and unit 5 are P30 billion and P43 billion, respectively.
Prior to the acquisition of MPPCL by SMC Global in 2018, the former applied for an Environmental Compliance Certificate for the power plant expansion in 2011.
SMC Global has an installed capacity of 4,347 MW as of August.It is one of the largest power companies in the Philippines with a diversified portfolio, namely coal, natural gas and hydropower.
The company has a market share of 25 percent in the Luzon grid, eight percent in Mindanao and 19 percent in the national grid. The Luzon Grid represents 73 percent of the nationwide demand.
https://manilastandard.net/business/power-technology/343479/smc-global-power-expanding-masinloc-coal-plant-by-630-mw.html
SMC Global Power Holdings, Inc., a unit of conglomerate San Miguel Corp., is pursuing the expansion of the Masinloc coal-fired power plant by 630 megawatts at a project cost of about P73 billion.
In documents submitted to the Department of Environment and Natural Resources, Masinloc Power Partners Co. Ltd, a unit of SMC Global, bared plans to expand the capacity of the power plant through the construction of units 4 and unit 5 capable of generating 315 MW and 315 MW of electricity, respectively.
MPPCL owns and operates the Masinloc coal-fired coal-fired power plants with Units 1, 2 and 3 in operation and Unit 4 under development at Barangay Bani, Masinloc, Zambales province.
MPPCL said the generated power from the units is delivered to the Luzon grid through two transmission lines running from Masinloc to the Kadampat substation. The plant’s site, meanwhile, has enough space to support the operation of an additional unit.
“In recent years, there has been an increasing demand for electricity, at the same time reducing carbon dioxide emission by adopting supercritical technology with higher steam pressure and temperature. To reduce CO2 emission and improve power generation, MPPCL has decided to utilize the same supercritical technology for Unit 5,” the company said.
MPPLC said smaller units were more popular and that the availability of a 315-MW size boiler and turbine had also increased in recent times, making it feasible to build such units at efficient cost.
It said the company is committed to cleaner energy generation wherever the opportunity occurs.
“Also, financial institutions are showing more interest in providing loans to supercritical units than subcritical units. It is getting difficult to justify investment in coal-fired power plant unless there is clear effort in reducing carbon dioxide emission by increasing plant efficiency by adopting higher steam pressure and temperature,” MPPCL said.
MPPCL decided to install unit 5 between the ash storage facility and unit 4. It said the estimated cost of the project of unit 4 and unit 5 are P30 billion and P43 billion, respectively.
Prior to the acquisition of MPPCL by SMC Global in 2018, the former applied for an Environmental Compliance Certificate for the power plant expansion in 2011.
SMC Global has an installed capacity of 4,347 MW as of August.It is one of the largest power companies in the Philippines with a diversified portfolio, namely coal, natural gas and hydropower.
The company has a market share of 25 percent in the Luzon grid, eight percent in Mindanao and 19 percent in the national grid. The Luzon Grid represents 73 percent of the nationwide demand.
Mining firms cap 2020 with P21-M community assistance
Published January 2, 2021, 11:00 AM by Bernie Cahiles-Magkilat
https://mb.com.ph/2021/01/02/mining-firms-cap-2020-with-p21-m-community-assistance/
A mining and a gold processing firm, working in tandem, capped their P21.8 million Corporate Social Responsibility (CSR) and Social Development and Management Program (SDMP) activities.
In a statement, Filminera Resources Corp. (Filminera) and PhilGold Processing and Refining Corp. (PhilGold) said the assistance was given to close to 2,000 residents (or around 400 families) in San Pablo Baracay, Albay, who were hit by Typhoons Rolly and Ulysses. Hardest hit were 47 homes, which were completely damaged. More than one fourth of these families belong to the indigenous people in the island.
Just before the close of the year 2020, Filminira and PhilGold distributed food packs for a media noche meal, relief goods and one bag of high quality rice and kitchen ware worth close to a million pesos as its first phase of donations. The second phase of donations are set to be released to schools in San Pablo and another community, in partnership with Global Medic.
Since the start of this year, Filminera and PhilGold have donated P21.8 million in financial assistance to communities, frontliners, and government agencies, drawn from their Corporate Social Responsibility (CSR) and Social Development and Management Program (SDMP) funds. This is aside from the P5.2 million donation which helped rebuild damaged houses and distribute relief goods, following the 6.6 magnitude earthquake in Masbate.
The two firms, which operate the Masbate Gold Project in Aroroy, Masbate, have helped develop the town. Filminera holds the mining tenements, surface rights and the mineral production sharing agreement (MPSA), while PhilGold holds a mineral processing permit, and owns as well as operates the processing plant. The erstwhile 4th class town has been reclassified as a first class municipality since the two firms commenced development in 2007.
https://mb.com.ph/2021/01/02/mining-firms-cap-2020-with-p21-m-community-assistance/
A mining and a gold processing firm, working in tandem, capped their P21.8 million Corporate Social Responsibility (CSR) and Social Development and Management Program (SDMP) activities.
In a statement, Filminera Resources Corp. (Filminera) and PhilGold Processing and Refining Corp. (PhilGold) said the assistance was given to close to 2,000 residents (or around 400 families) in San Pablo Baracay, Albay, who were hit by Typhoons Rolly and Ulysses. Hardest hit were 47 homes, which were completely damaged. More than one fourth of these families belong to the indigenous people in the island.
Just before the close of the year 2020, Filminira and PhilGold distributed food packs for a media noche meal, relief goods and one bag of high quality rice and kitchen ware worth close to a million pesos as its first phase of donations. The second phase of donations are set to be released to schools in San Pablo and another community, in partnership with Global Medic.
Since the start of this year, Filminera and PhilGold have donated P21.8 million in financial assistance to communities, frontliners, and government agencies, drawn from their Corporate Social Responsibility (CSR) and Social Development and Management Program (SDMP) funds. This is aside from the P5.2 million donation which helped rebuild damaged houses and distribute relief goods, following the 6.6 magnitude earthquake in Masbate.
The two firms, which operate the Masbate Gold Project in Aroroy, Masbate, have helped develop the town. Filminera holds the mining tenements, surface rights and the mineral production sharing agreement (MPSA), while PhilGold holds a mineral processing permit, and owns as well as operates the processing plant. The erstwhile 4th class town has been reclassified as a first class municipality since the two firms commenced development in 2007.
Energy sales of electric coops increase by 3% in 3rd quarter
Published January 2, 2021, 6:40 AM by Myrna M. Velasco
https://mb.com.ph/2021/01/02/energy-sales-of-electric-coops-increase-by-3-in-3rd-quarter/
In what could be an indication of rebound in electricity demand, the National Electrification Administration (NEA) reported that the energy sales of electric cooperatives (ECs) had been up by 3.0-percent in the third quarter of 2020.
The government-run agency noted that based on data gathered by its Information Technology and Communication Services Department (ITCSD), the July-September sales of the ECs hovered at 6,153 gigawatt-hours, which was higher than the 5,950 GWh sales posted in the same period the previous year.
Despite upward trend in sales though, NEA indicated that revenues in the third quarter declined by 4.0-percent to P54.128 billion as against P56.407 billion in the same third quarter timeframe in 2019.
If reckoned with the second quarter revenues in 2020 though at P54.074 billion, the results in July to September had been slightly up; and if compared with first quarter’s P49.672 billion, third quarter revenues had been higher by 9.0-percent.
Further, NEA emphasized that volume sales outcome in the third quarter had escalated by a parallel 3.0-percent vis-Ã -vis results in the second quarter with 5,988 GWh of electricity sold.
The electrification agency nevertheless indicated that energy usage of the residential sector was still at a dip of 59-percent; although that had already gone leaner versus 62-percent logged in the second quarter.
Conversely, the demand of the commercial sector picked up by 18-percent within the July-September stretch compared to a growth of 16-percent in a prior quarter; while for industrial users, this went up slightly to 17-percent as against 16-percent in the second quarter.
Roderick Padua, manager of NEA-ITCSD, pointed out that “the energy consumption level registered in the third quarter was gearing towards the normal level prior to the coronavirus disease pandemic.”
It is worth noting that when lockdowns were enforced in the country – primarily in the March-May period, electricity consumption plummeted by 30 to 40-percent mainly due to stalled economic activities.
For most parts of the country, demand rise shifted to the residential end-users because most Filipinos were restrained at home – be it for work-from-home arrangements or the online learning platform for students – all because of the niggling health crisis.
Industry players in the power sector are doing the spadework for anticipated rise in electricity demand for 2021, given prospects of wider economic re-opening especially if the country gets access to the Covid-19 vaccine.
https://mb.com.ph/2021/01/02/energy-sales-of-electric-coops-increase-by-3-in-3rd-quarter/
In what could be an indication of rebound in electricity demand, the National Electrification Administration (NEA) reported that the energy sales of electric cooperatives (ECs) had been up by 3.0-percent in the third quarter of 2020.
The government-run agency noted that based on data gathered by its Information Technology and Communication Services Department (ITCSD), the July-September sales of the ECs hovered at 6,153 gigawatt-hours, which was higher than the 5,950 GWh sales posted in the same period the previous year.
Despite upward trend in sales though, NEA indicated that revenues in the third quarter declined by 4.0-percent to P54.128 billion as against P56.407 billion in the same third quarter timeframe in 2019.
If reckoned with the second quarter revenues in 2020 though at P54.074 billion, the results in July to September had been slightly up; and if compared with first quarter’s P49.672 billion, third quarter revenues had been higher by 9.0-percent.
Further, NEA emphasized that volume sales outcome in the third quarter had escalated by a parallel 3.0-percent vis-Ã -vis results in the second quarter with 5,988 GWh of electricity sold.
The electrification agency nevertheless indicated that energy usage of the residential sector was still at a dip of 59-percent; although that had already gone leaner versus 62-percent logged in the second quarter.
Conversely, the demand of the commercial sector picked up by 18-percent within the July-September stretch compared to a growth of 16-percent in a prior quarter; while for industrial users, this went up slightly to 17-percent as against 16-percent in the second quarter.
Roderick Padua, manager of NEA-ITCSD, pointed out that “the energy consumption level registered in the third quarter was gearing towards the normal level prior to the coronavirus disease pandemic.”
It is worth noting that when lockdowns were enforced in the country – primarily in the March-May period, electricity consumption plummeted by 30 to 40-percent mainly due to stalled economic activities.
For most parts of the country, demand rise shifted to the residential end-users because most Filipinos were restrained at home – be it for work-from-home arrangements or the online learning platform for students – all because of the niggling health crisis.
Industry players in the power sector are doing the spadework for anticipated rise in electricity demand for 2021, given prospects of wider economic re-opening especially if the country gets access to the Covid-19 vaccine.
PSALM to auction Pampanga real estate asset in March
Published January 2, 2021, 6:00 AM by Elisor Recide
https://mb.com.ph/2021/01/02/psalm-to-auction-pampanga-real-estate-asset-in-march/
State-run Power Sector Assets and Liabilities Management Corporation (PSALM) is disposing another real estate asset by March 25 next year – and this time, it is a bigger-scale property in Barangay Lagundi in Mexico, Pampanga spanning 50,447 square meters.
The company issued invitation to bid (ITB) for its second round bidding on December 29, 2020; and interested buyers may start their due diligence process on January 4, 2021; while the pre-bid conference where they can raise questions and concerns on the asset’s divestment is scheduled on February 10.
PSALM apprised prospective takers that “the minimum bid price for the sale of the property will be announced at a later date and will be issued to interested parties/bidders through a supplemental bid bulletin or through re-publication of the ITB.”
It stipulated that “bids received below the minimum bid price shall be automatically rejected at bid opening.”
Interested parties can have access to the bidding package upon settlement of a non-refundable fee of P100,000.00; and the documents include bidding procedures, property profile and scanned copies of transfer certificates of title (TCT), tax declarations, lot plans and other available information relating to the property.
Interested parties can have access to the bidding package upon settlement of a non-refundable fee of P100,000.00; and the documents include bidding procedures, property profile and scanned copies of transfer certificates of title (TCT), tax declarations, lot plans and other available information relating to the property.
For the bid security that must be posted by the qualified bidders, PSALM stated that this shall be in an amount “equal to at least 10-percent of the bid price and shall be in cash, cashier’s or manager’s check, stand-by letter of credit (SBLC) issued by any commercial or universal bank licensed to do business and operating in the Philippines.”
According to the government-owned firm, the bid security can also be in the form of a surety bond, “callable upon demand”, and must be “issued by a surety or insurance company duly certified by the Insurance Commission as authorized to issue such security.”
PSALM similarly noted that “bidders who opt to submit bid security in the form of cash shall deposit the same through telegraphic transfer,” in a specified account of the company with the Land Bank of the Philippines.
The company prescribed that “a bid security in the form of manager’s/cashier’s check, SBLC or surety bond shall be submitted as part of the bid envelope.”
If the auction will turn out successful, the winning bidder is directed to remit payment within 10 business days from its receipt of the notice of award from the asset-seller firm.
“The winning bidder shall pay a one-time full payment of the purchase price in accordance with the payment instruction to be issued by PSALM,” the state-run company said.
As emphasized, the buyer of the asset “shall pay for all applicable taxes, licenses, fees and charges due on the sale transaction and all unpaid taxes, fees and/or expenses, such as but not limited to, capital gains tax or creditable withholding tax, whichever is applicable, documentary stamp tax, registration and transfer fees, and all other expenses and charges,” primarily those that cover the transfer of the title to the asset buyer.
PSALM has been privatizing array of real estate assets previously owned by the National Power Corporation (NPC), so it can raise additional cash to pay off the outstanding financial obligations of the power firm.
https://mb.com.ph/2021/01/02/psalm-to-auction-pampanga-real-estate-asset-in-march/
State-run Power Sector Assets and Liabilities Management Corporation (PSALM) is disposing another real estate asset by March 25 next year – and this time, it is a bigger-scale property in Barangay Lagundi in Mexico, Pampanga spanning 50,447 square meters.
The company issued invitation to bid (ITB) for its second round bidding on December 29, 2020; and interested buyers may start their due diligence process on January 4, 2021; while the pre-bid conference where they can raise questions and concerns on the asset’s divestment is scheduled on February 10.
PSALM apprised prospective takers that “the minimum bid price for the sale of the property will be announced at a later date and will be issued to interested parties/bidders through a supplemental bid bulletin or through re-publication of the ITB.”
It stipulated that “bids received below the minimum bid price shall be automatically rejected at bid opening.”
Interested parties can have access to the bidding package upon settlement of a non-refundable fee of P100,000.00; and the documents include bidding procedures, property profile and scanned copies of transfer certificates of title (TCT), tax declarations, lot plans and other available information relating to the property.
Interested parties can have access to the bidding package upon settlement of a non-refundable fee of P100,000.00; and the documents include bidding procedures, property profile and scanned copies of transfer certificates of title (TCT), tax declarations, lot plans and other available information relating to the property.
For the bid security that must be posted by the qualified bidders, PSALM stated that this shall be in an amount “equal to at least 10-percent of the bid price and shall be in cash, cashier’s or manager’s check, stand-by letter of credit (SBLC) issued by any commercial or universal bank licensed to do business and operating in the Philippines.”
According to the government-owned firm, the bid security can also be in the form of a surety bond, “callable upon demand”, and must be “issued by a surety or insurance company duly certified by the Insurance Commission as authorized to issue such security.”
PSALM similarly noted that “bidders who opt to submit bid security in the form of cash shall deposit the same through telegraphic transfer,” in a specified account of the company with the Land Bank of the Philippines.
The company prescribed that “a bid security in the form of manager’s/cashier’s check, SBLC or surety bond shall be submitted as part of the bid envelope.”
If the auction will turn out successful, the winning bidder is directed to remit payment within 10 business days from its receipt of the notice of award from the asset-seller firm.
“The winning bidder shall pay a one-time full payment of the purchase price in accordance with the payment instruction to be issued by PSALM,” the state-run company said.
As emphasized, the buyer of the asset “shall pay for all applicable taxes, licenses, fees and charges due on the sale transaction and all unpaid taxes, fees and/or expenses, such as but not limited to, capital gains tax or creditable withholding tax, whichever is applicable, documentary stamp tax, registration and transfer fees, and all other expenses and charges,” primarily those that cover the transfer of the title to the asset buyer.
PSALM has been privatizing array of real estate assets previously owned by the National Power Corporation (NPC), so it can raise additional cash to pay off the outstanding financial obligations of the power firm.
Napocor seeks to recover P3 billion from off-grid operations
Danessa Rivera (The Philippine Star) - January 2, 2021 - 12:00am
https://www.philstar.com/business/2021/01/02/2067559/napocor-seeks-recover-p3-billion-grid-operations
MANILA, Philippines — The National Power Corp. (Napocor) is seeking regulatory approval to recover over P3 billion from customers in missionary or off-grid areas for the operational costs incurred in the delivery of power to those areas in 2018.
Napocor filed a petition with the Energy Regulatory Commission (ERC) to approve its 19th application of recovery charges under the generation rate adjustment mechanism (GRAM).
GRAM seeks to recover deferred fuel costs and power purchased costs incurred in providing power in Napocor-Small Power Utilities Group (SPUG) areas.
In its GRAM application, Napocor is seeking to recover P3.23 billion of deferred fuel costs it incurred from January to December 2018.
To recover this amount, it proposed to impose additional charges of P1.9361 per kilowatt-hour (kwh) for off-grid customers in Luzon, P1.7259 per kwh for those in Visayas and P1.6814 per kwh for those in Mindanao.
Napocor has proposed to recover the said rates over a three-year period to “mitigate the impact thereof to customers in the missionary areas.”
Under the Electric Power Industry Reform Act (EPIRA) of 2001, Napocor is mandated to provide power generation and its associated power delivery systems in areas that are not connected to the transmission system, which include remote villages in Mindanao, Palawan and Mindoro.
This is being done through Napocor-SPUG, which incurs additional operating costs as a result of the fluctuation of fuel prices used in power generation. It currently has 275 SPUG plants.
https://www.philstar.com/business/2021/01/02/2067559/napocor-seeks-recover-p3-billion-grid-operations
MANILA, Philippines — The National Power Corp. (Napocor) is seeking regulatory approval to recover over P3 billion from customers in missionary or off-grid areas for the operational costs incurred in the delivery of power to those areas in 2018.
Napocor filed a petition with the Energy Regulatory Commission (ERC) to approve its 19th application of recovery charges under the generation rate adjustment mechanism (GRAM).
GRAM seeks to recover deferred fuel costs and power purchased costs incurred in providing power in Napocor-Small Power Utilities Group (SPUG) areas.
In its GRAM application, Napocor is seeking to recover P3.23 billion of deferred fuel costs it incurred from January to December 2018.
To recover this amount, it proposed to impose additional charges of P1.9361 per kilowatt-hour (kwh) for off-grid customers in Luzon, P1.7259 per kwh for those in Visayas and P1.6814 per kwh for those in Mindanao.
Napocor has proposed to recover the said rates over a three-year period to “mitigate the impact thereof to customers in the missionary areas.”
Under the Electric Power Industry Reform Act (EPIRA) of 2001, Napocor is mandated to provide power generation and its associated power delivery systems in areas that are not connected to the transmission system, which include remote villages in Mindanao, Palawan and Mindoro.
This is being done through Napocor-SPUG, which incurs additional operating costs as a result of the fluctuation of fuel prices used in power generation. It currently has 275 SPUG plants.
DOE prepares for green energy auction in June
posted January 01, 2021 at 06:10 pm by Alena Mae S. Flores
https://manilastandard.net/business/power-technology/343415/doe-prepares-for-green-energy-auction-in-june.html
The Department of Energy said Friday it will push through with the Green Energy Auction program in June for an initial 2,000 megawatts of renewable energy capacity.
Energy Secretary Alfonso Cusi said the auction would be held by mid-June, and the DOE was prepared to increase the capacity up for auction.
“But rather than saying how much we're going to increase it, let’s see first the output of the auction,” Cui said.
The green energy auction refers to the competitive process for the procurement of RE supply.
Cusi said the DOE was looking at other options to increase renewable energy use such as the renewable energy portfolio standard.
RPS is a policy mechanism that requires electric power industry participants such as generators, distribution utilities and suppliers to source or produce a specified fraction of their electricity from eligible RE resources.
It is set at one percent of electricity sales allocation for distribution utilities connected to the grid.
The National Renewable Energy Board proposed increasing the one percent RPS target to two percent annually but this is still being studied by DOE.
Cusi said DOE was also processing around 8,500 MW of competitive selection process for solar, wind, and battery energy storage system.
“That is not included in the auction, even not included in one percent of RPS,” he said.
The department expects clean energy to capture more than 66 percent of the total power generation mix by 2040 under a low-carbon scenario.
Cusi said last month the low-carbon scenario would involve the transformation of the energy sector when enhanced policies and decisive measures were further introduced.
“This also translates into a power generation mix that shifts from being coal–centered to one where RE, natural gas, and other emerging clean energy technologies will have increased shares. The combined clean energy sources will improve to reach more than 66 percent of the total generation by 2040,” Cusi said.
The Philippines has 70.8-percent fossil-based capacity and 29.2-percent renewable energy-based capacity.
Cusi said that as of June 2020, the Philippines had 25,713 megawatts of installed capacity from all existing and operating power generation facilities.
“To further support a low-carbon future, we are currently prioritizing the issuance of our National Renewable Energy Program 2020-2040 to achieve the envisioned target of around 34,000 MW of renewable energy installations by 2040,” Cusi said.
Cusi said 44,761 MW of additional RE capacity were needed to achieve the levels set in the clean energy scenario.
“Under the clean energy or low carbon scenario, there will be a slower growth of the total primary energy supply, as a result of our energy efficiency and conservation measures. Coal and oil shares will also continue to decrease due to the use of alternative fuels for transport, among others,” he said.
Cusi said the department was fully committed to faithfully implement Republic Act 9513 or the Renewable Energy Law of 2008.
He ordered a periodic review of the law “to see where we are in terms of implementation and find stronger ways to promote our indigenous renewable energy sources.”
Aboitiz Power expects to open 1,336-MW coal plant in Bataan in second quarter
posted January 01, 2021 at 06:30 pm by Alena Mae S. Flores
https://manilastandard.net/business/power-technology/343413/aboitiz-power-expects-to-open-1-336-mw-coal-plant-in-bataan-in-second-quarter.html
Aboitiz Power Corp. said Friday it expects to complete the 1,336-megawatt GNPower Dinginin coal-fired power plant in Dinginin, Bataan by the second quarter this year.
“Key goals for AP for 2021 is to deliver GNPD which we expect to be generating power by the second quarter of 2021,” Aboitiz Power president and chief executive Emmanuel Rubio said.
Aboitiz Power’s nine-month report showed the GNPower Dinginin project was in the final stages of construction, but continued to face challenges amid the COVID-19 pandemic and the imposition of the travel ban from China.
It said project timelines were impacted by the imposition of d travel restrictions and delays in the delivery of materials.
The company said despite the strict COVID-19 measures implemented on the site, key technical personnel and materials mobilization were largely achieved.
Meanwhile, Aboitiz Power said it was planning to participate in the competitive selection process of Manila Electric Co. for the supply of 1,800 MW on Jan. 25, 2021.
“We also plan to participate in the Meralco CSP with the aim of supplying a portion of Meralco’s requirements,” Rubio said.
He said the company was also focused on executing renewable energy projects in preparation for the Renewable Energy Portfolio Standards requirements through the Energy Department’s Green Energy Auction Program in line with long-term goals.
“We are also looking at options for our next base load opportunity as we expect the grid will need new capacities as early as 2026,” Rubio said.
The company is set on significantly expanding its portfolio of renewable energy power plants over the next decade. By 2030, it expects capacity mix to be transformed into an almost 50:50 thermal to renewable energy ratio.
“Our targets in the next decade remain the same. We will continue to pursue a major shift in our energy mix by 2030, but while we remain focused on addressing the country’s energy trilemma of energy security, energy equity, and environmental sustainability, we will be shifting the balance from ensuring low-cost energy to providing energy from more sustainable sources,” Rubio said.
Rubio said 2020 revealed “how resilient we are as an organization, manifested by the group’s successes in spite of the challenges it faced in the last nine months.”
The Aboitiz Power Group and the Department of Energy turned over around P650 million in direct remittances under the Energy Regulations No. 1-94 program to various host communities across the country as of Dec. 28.
The ER 1-94 program is a policy under the DOE stipulating that communities hosting power generation plants get a share of one centavo per kilowatt-hour generated by facilities operating in their area.
Host LGUs can also use these shares to help manage the effects of the new virus, in accordance with the Bayanihan to Heal as One Act. This includes the facilitation of mass testing by providing and constructing facilities and acquiring proper medical testing kits.
Among the other highlights of 2020 for Aboitiz Power was the renewal of its pact with First Bay Power Corp. on the supply of Cleanergy, the company’s brand for renewable energy, which will help power the livelihood and development of the municipality of Bauan, Batangas.
This renewed partnership signals the start of the delivery of 10 MW of clean power to First Bay from AP Renewables Inc.’s MakBan geothermal facility. This aligns with the thrust of the Aboitiz Group to grow its Cleanergy portfolio and position itself as a major player in the renewable energy space.
Aboitiz Power is the holding company for the Aboitiz Group’s investments in power generation, distribution, and retail electricity services.
https://manilastandard.net/business/power-technology/343413/aboitiz-power-expects-to-open-1-336-mw-coal-plant-in-bataan-in-second-quarter.html
Aboitiz Power Corp. said Friday it expects to complete the 1,336-megawatt GNPower Dinginin coal-fired power plant in Dinginin, Bataan by the second quarter this year.
“Key goals for AP for 2021 is to deliver GNPD which we expect to be generating power by the second quarter of 2021,” Aboitiz Power president and chief executive Emmanuel Rubio said.
Aboitiz Power’s nine-month report showed the GNPower Dinginin project was in the final stages of construction, but continued to face challenges amid the COVID-19 pandemic and the imposition of the travel ban from China.
It said project timelines were impacted by the imposition of d travel restrictions and delays in the delivery of materials.
The company said despite the strict COVID-19 measures implemented on the site, key technical personnel and materials mobilization were largely achieved.
Meanwhile, Aboitiz Power said it was planning to participate in the competitive selection process of Manila Electric Co. for the supply of 1,800 MW on Jan. 25, 2021.
“We also plan to participate in the Meralco CSP with the aim of supplying a portion of Meralco’s requirements,” Rubio said.
He said the company was also focused on executing renewable energy projects in preparation for the Renewable Energy Portfolio Standards requirements through the Energy Department’s Green Energy Auction Program in line with long-term goals.
“We are also looking at options for our next base load opportunity as we expect the grid will need new capacities as early as 2026,” Rubio said.
The company is set on significantly expanding its portfolio of renewable energy power plants over the next decade. By 2030, it expects capacity mix to be transformed into an almost 50:50 thermal to renewable energy ratio.
“Our targets in the next decade remain the same. We will continue to pursue a major shift in our energy mix by 2030, but while we remain focused on addressing the country’s energy trilemma of energy security, energy equity, and environmental sustainability, we will be shifting the balance from ensuring low-cost energy to providing energy from more sustainable sources,” Rubio said.
Rubio said 2020 revealed “how resilient we are as an organization, manifested by the group’s successes in spite of the challenges it faced in the last nine months.”
The Aboitiz Power Group and the Department of Energy turned over around P650 million in direct remittances under the Energy Regulations No. 1-94 program to various host communities across the country as of Dec. 28.
The ER 1-94 program is a policy under the DOE stipulating that communities hosting power generation plants get a share of one centavo per kilowatt-hour generated by facilities operating in their area.
Host LGUs can also use these shares to help manage the effects of the new virus, in accordance with the Bayanihan to Heal as One Act. This includes the facilitation of mass testing by providing and constructing facilities and acquiring proper medical testing kits.
Among the other highlights of 2020 for Aboitiz Power was the renewal of its pact with First Bay Power Corp. on the supply of Cleanergy, the company’s brand for renewable energy, which will help power the livelihood and development of the municipality of Bauan, Batangas.
This renewed partnership signals the start of the delivery of 10 MW of clean power to First Bay from AP Renewables Inc.’s MakBan geothermal facility. This aligns with the thrust of the Aboitiz Group to grow its Cleanergy portfolio and position itself as a major player in the renewable energy space.
Aboitiz Power is the holding company for the Aboitiz Group’s investments in power generation, distribution, and retail electricity services.
NGCP seeks government support for critical power projects
Danessa Rivera (The Philippine Star ) - January 1, 2021 - 12:00am
https://www.philstar.com/business/2021/01/01/2067427/ngcp-seeks-government-support-critical-power-projects
MANILA, Philippines — The National Grid Corp. of the Philippines (NGCP) is seeking government support as its ongoing critical transmission projects may face further delays due to new travel ban imposed by the government.
NGCP is raising concerns over further delays on the completion of critical projects meant for the improvement of the power grid amid the travel ban put in place to prevent the entry of the new strain of COVID-19.
The government has imposed a travel ban until January 15 on foreign travelers coming from areas where the new strain of the COVID-19 first recorded in the United Kingdom.
As it expects further delays due to the travel ban, NGCP is seeking the government’s consideration to allow its suppliers, as well as shipments of essential transmission equipment, to enter the country, while observing all safety protocols and strict compliance to health standards.
“NGCP understands the need to control the virus and prevent the new strain from affecting our people, but there must also be creative ways in place to balance health concerns with the need to keep the economy afloat,” the company said.
“NGCP’s critical projects cannot face any further delays as this may have an implication on the stability and reliability of power transmission services, especially with the growing demand for power. We hope this will also be taken into consideration,” it said.
The submarine cable laying activity for the Mindanao-Visayas Interconnection Project (MVIP), for example, faces new delays with the vessel carrying the said transmission equipment unable to enter the country due to the travel ban, it said.
At the height of the nationwide enhanced community quarantine (ECQ), NGCP was constrained to temporarily suspend its construction projects to ensure compliance with health and safety regulations.
The MVIP, which was originally scheduled for completion this year, is now delayed due to the lockdown imposed by the government to control the spread of COVID-19.
NGCP has revised the timeline of critical project, considered as the largest energy infrastructure in the history of the country, to 2021.
The grid operator said it has ramped up the construction of vital transmission projects as government eased restrictions but it continues to assess project schedules are continually reassessed as varying degrees of community quarantine remain in effect.
NGCP is a Filipino-led, privately owned company in charge of operating, maintaining, and developing the country’s power grid, led by majority shareholders and vice chairman of the board Henry Sy, Jr. and co-vice chairman Robert Coyiuto, Jr.
https://www.philstar.com/business/2021/01/01/2067427/ngcp-seeks-government-support-critical-power-projects
MANILA, Philippines — The National Grid Corp. of the Philippines (NGCP) is seeking government support as its ongoing critical transmission projects may face further delays due to new travel ban imposed by the government.
NGCP is raising concerns over further delays on the completion of critical projects meant for the improvement of the power grid amid the travel ban put in place to prevent the entry of the new strain of COVID-19.
The government has imposed a travel ban until January 15 on foreign travelers coming from areas where the new strain of the COVID-19 first recorded in the United Kingdom.
As it expects further delays due to the travel ban, NGCP is seeking the government’s consideration to allow its suppliers, as well as shipments of essential transmission equipment, to enter the country, while observing all safety protocols and strict compliance to health standards.
“NGCP understands the need to control the virus and prevent the new strain from affecting our people, but there must also be creative ways in place to balance health concerns with the need to keep the economy afloat,” the company said.
“NGCP’s critical projects cannot face any further delays as this may have an implication on the stability and reliability of power transmission services, especially with the growing demand for power. We hope this will also be taken into consideration,” it said.
The submarine cable laying activity for the Mindanao-Visayas Interconnection Project (MVIP), for example, faces new delays with the vessel carrying the said transmission equipment unable to enter the country due to the travel ban, it said.
At the height of the nationwide enhanced community quarantine (ECQ), NGCP was constrained to temporarily suspend its construction projects to ensure compliance with health and safety regulations.
The MVIP, which was originally scheduled for completion this year, is now delayed due to the lockdown imposed by the government to control the spread of COVID-19.
NGCP has revised the timeline of critical project, considered as the largest energy infrastructure in the history of the country, to 2021.
The grid operator said it has ramped up the construction of vital transmission projects as government eased restrictions but it continues to assess project schedules are continually reassessed as varying degrees of community quarantine remain in effect.
NGCP is a Filipino-led, privately owned company in charge of operating, maintaining, and developing the country’s power grid, led by majority shareholders and vice chairman of the board Henry Sy, Jr. and co-vice chairman Robert Coyiuto, Jr.
New power spot market pricing methodology OKd
Danessa Rivera (The Philippine Star) - January 1, 2021 - 12:00am
https://www.philstar.com/business/2021/01/01/2067424/new-power-spot-market-pricing-methodology-okd
MANILA, Philippines — The Energy Regulatory Commission (ERC) has finally approved the new price determination methodology (PDM) for the Wholesale Electricity Spot Market (WESM), which will speed up electricity trading and pave the way for the full operations of the electricity bourse in Mindanao.
“The new PDM provides amended features with regard to price determination and settlement in the WESM and consolidated the various pricing mechanisms which are currently contained in several issuances of the commission,” ERC chairperson and CEO Agnes Devanadera said.
Under the new PDM, the key features of the enhanced WESM design and operations include shorter scheduling and pricing intervals from one hour to five minutes; adoption of ex-ante only pricing; automatic re-runs when prices reflect constraint violations to provide timely disclosure of settlement-ready prices; and hour-ahead projections, in addition to the week-ahead and day-ahead projections, to facilitate commitment decisions of trading participants.
According to the ERC, the adoption of the enhanced WESM design and operations provides a shorter dispatch interval of five minutes which will result in better pricing signals by instantly reflecting the changes in supply and demand.
This would also potentially reduce the requirement for frequency regulation reserve which is beneficial to consumers, it said.
“Projecting possible conditions in the next five minutes will result in a more accurate picture of the actual conditions as compared to projecting the possible market conditions in the next one hour. Since regulating reserves are needed to address the fluctuations in supply and demand, lesser fluctuation brought about by better projection would mean lesser requirements for regulating reserves. Also, considering that customers pay for the procurement of regulating reserves, this would translate to lower costs for the customers,” Devanadera said.
The ERC recognizes the importance of having the correct pricing signals and timely publication of settlement-ready prices in real-time for efficiency and transparency in prices.
With better pricing signals, congested areas that need additional local generation and transmission improvements and enhancements are identified and improved.
As such, lower congestion cost will result in lower resulting market prices which will redound to the benefit of the consumers, the ERC said.
The approval of the new PDM will also be used for the upcoming commercial operations of WESM in Mindanao.
After several delays, WESM Mindanao was supposed to go live on Jan. 26 alongside the commencement of operations of the New Market Management System (NMMS) in Luzon and Visayas. The operation, however, was pushed back to mid 2021 pending the approval of the PDM.
The NMMS allows the transition from the one-hour interval to the five-minute market and aims to address the obsolescence of the existing MMS that will complement the market’s mandate in promoting efficiency and transparency in electricity trading.
The new PDM shall continue to adhere with the basic principles of the existing PDM for the WESM, such as the gross pool design concept, adoption of net settlement for bilateral contract quantities, use of locational marginal pricing, and the concept of self-commitment where trading participants manage their respective technical operations, unit commitment decisions and other market risks through the submission of bids and offers to the WESM.
https://www.philstar.com/business/2021/01/01/2067424/new-power-spot-market-pricing-methodology-okd
MANILA, Philippines — The Energy Regulatory Commission (ERC) has finally approved the new price determination methodology (PDM) for the Wholesale Electricity Spot Market (WESM), which will speed up electricity trading and pave the way for the full operations of the electricity bourse in Mindanao.
“The new PDM provides amended features with regard to price determination and settlement in the WESM and consolidated the various pricing mechanisms which are currently contained in several issuances of the commission,” ERC chairperson and CEO Agnes Devanadera said.
Under the new PDM, the key features of the enhanced WESM design and operations include shorter scheduling and pricing intervals from one hour to five minutes; adoption of ex-ante only pricing; automatic re-runs when prices reflect constraint violations to provide timely disclosure of settlement-ready prices; and hour-ahead projections, in addition to the week-ahead and day-ahead projections, to facilitate commitment decisions of trading participants.
According to the ERC, the adoption of the enhanced WESM design and operations provides a shorter dispatch interval of five minutes which will result in better pricing signals by instantly reflecting the changes in supply and demand.
This would also potentially reduce the requirement for frequency regulation reserve which is beneficial to consumers, it said.
“Projecting possible conditions in the next five minutes will result in a more accurate picture of the actual conditions as compared to projecting the possible market conditions in the next one hour. Since regulating reserves are needed to address the fluctuations in supply and demand, lesser fluctuation brought about by better projection would mean lesser requirements for regulating reserves. Also, considering that customers pay for the procurement of regulating reserves, this would translate to lower costs for the customers,” Devanadera said.
The ERC recognizes the importance of having the correct pricing signals and timely publication of settlement-ready prices in real-time for efficiency and transparency in prices.
With better pricing signals, congested areas that need additional local generation and transmission improvements and enhancements are identified and improved.
As such, lower congestion cost will result in lower resulting market prices which will redound to the benefit of the consumers, the ERC said.
The approval of the new PDM will also be used for the upcoming commercial operations of WESM in Mindanao.
After several delays, WESM Mindanao was supposed to go live on Jan. 26 alongside the commencement of operations of the New Market Management System (NMMS) in Luzon and Visayas. The operation, however, was pushed back to mid 2021 pending the approval of the PDM.
The NMMS allows the transition from the one-hour interval to the five-minute market and aims to address the obsolescence of the existing MMS that will complement the market’s mandate in promoting efficiency and transparency in electricity trading.
The new PDM shall continue to adhere with the basic principles of the existing PDM for the WESM, such as the gross pool design concept, adoption of net settlement for bilateral contract quantities, use of locational marginal pricing, and the concept of self-commitment where trading participants manage their respective technical operations, unit commitment decisions and other market risks through the submission of bids and offers to the WESM.
ERC orders Meralco to refund P1.4 billion over collection
Danessa Rivera (The Philippine Star) - December 31, 2020 - 12:00am
https://www.philstar.com/business/2020/12/31/2067186/erc-orders-meralco-refund-p14-billion-over-collection
MANILA, Philippines — The Energy Regulatory Commission (ERC) has ordered Manila Electric Co. (Meralco) to refund customers of over collections of P1.4 billion in pass through charges and collect under recoveries of P2.38 billion in generation rate.
“The commission’s initial evaluation of the documents submitted by Meralco revealed that it incurred a total over collection amounting to P1.4 billion in the transmission rate (TR), system loss rate (SLR), lifeline subsidy rate (LSR), and senior citizen subsidy rate (SrCSR), but also incurred a total of P2.38 billion under collection in the generation rate (GR),” ERC chairperson and CEO Agnes Devanadera said.
The amounts were validated based on Meralco’s submitted data for the periodJanuary 2017 to December 2019.
In its order, the ERC directed Meralco to implement its over and under-recoveries, by way of refunding and collecting the same, subject to the final evaluation by the commission.
Starting on the next billing cycle, Meralco should refund the over-recoveries at an average rate of P0.1331 per kilowatt-hour (kWh) for a period of approximately three months.
Meanwhile, the power distributor should collect the computed under-recovery in the GR, with an equivalent rate of P0.0395 per kWh for approximately 24 months until fully collected.
The ERC directed a longer period for Meralco to collect the under charges in order to protect the consuming public by mitigating the impact of the said under-recovery collection.
Meralco was also directed to reflect the over and under-recoveries in the monthly computations of GR, TR, SLR, LSR and SrSR as “OGA” for generation, “OTCA” for transmission, “OSLA” for system loss, “OLRA” for lifeline subsidy, and “OSrRA” for senior citizen subsidy.
The distribution utility (DU) was also required to submit within 10 days from its implementation a sworn statement indicating its compliance with the ERC order.
DUs are required to file their respective applications to the ERC once every three years in order to ensure that the recovery of the said various pass-through costs is fair and proper.
“Let it be emphasized that the Commission, in acting on the pass on charges confirmation has the consumers’ welfare as its primordial consideration. We will find means, such as stretching the collection of any under collection to a longer period and effecting a quick refund for over collection, in order to temper the impact on consumer’s bill,” Devanadera said.
https://www.philstar.com/business/2020/12/31/2067186/erc-orders-meralco-refund-p14-billion-over-collection
MANILA, Philippines — The Energy Regulatory Commission (ERC) has ordered Manila Electric Co. (Meralco) to refund customers of over collections of P1.4 billion in pass through charges and collect under recoveries of P2.38 billion in generation rate.
“The commission’s initial evaluation of the documents submitted by Meralco revealed that it incurred a total over collection amounting to P1.4 billion in the transmission rate (TR), system loss rate (SLR), lifeline subsidy rate (LSR), and senior citizen subsidy rate (SrCSR), but also incurred a total of P2.38 billion under collection in the generation rate (GR),” ERC chairperson and CEO Agnes Devanadera said.
The amounts were validated based on Meralco’s submitted data for the periodJanuary 2017 to December 2019.
In its order, the ERC directed Meralco to implement its over and under-recoveries, by way of refunding and collecting the same, subject to the final evaluation by the commission.
Starting on the next billing cycle, Meralco should refund the over-recoveries at an average rate of P0.1331 per kilowatt-hour (kWh) for a period of approximately three months.
Meanwhile, the power distributor should collect the computed under-recovery in the GR, with an equivalent rate of P0.0395 per kWh for approximately 24 months until fully collected.
The ERC directed a longer period for Meralco to collect the under charges in order to protect the consuming public by mitigating the impact of the said under-recovery collection.
Meralco was also directed to reflect the over and under-recoveries in the monthly computations of GR, TR, SLR, LSR and SrSR as “OGA” for generation, “OTCA” for transmission, “OSLA” for system loss, “OLRA” for lifeline subsidy, and “OSrRA” for senior citizen subsidy.
The distribution utility (DU) was also required to submit within 10 days from its implementation a sworn statement indicating its compliance with the ERC order.
DUs are required to file their respective applications to the ERC once every three years in order to ensure that the recovery of the said various pass-through costs is fair and proper.
“Let it be emphasized that the Commission, in acting on the pass on charges confirmation has the consumers’ welfare as its primordial consideration. We will find means, such as stretching the collection of any under collection to a longer period and effecting a quick refund for over collection, in order to temper the impact on consumer’s bill,” Devanadera said.
FIT on run-of-river projects extended
posted December 31, 2020 at 08:10 pm by Alena Mae S. Flores
https://manilastandard.net/business/power-technology/343366/fit-on-run-of-river-projects-extended.html
The Department of Energy said Thursday it approved the extension of the feed-in tariff system for run-of-river hydro projects until the full subscription of the 250-megawatt installation target is achieved.
The department said the balance of the 250-MW installation target for run-of-river hydro remained significant at 103.887 MW.
Energy Secretary Alfonso Cusi also acted on the request of the National Renewable Energy Board, endorsing the extension of the deadline for the FIT eligibility of run-of-river hydro projects from Dec. 31, 2019 to such date as the installation target is achieved.
“Despite the extension of the FIT deadline for ROR hydropower, the 250-MW installation target remains undersubscribed. On the other hand, a substantial number of hydropower plant project which are in various stages of construction and vying for FIT eligibility were not able to meet the 31 December 2019,” Cusi said.
https://manilastandard.net/business/power-technology/343366/fit-on-run-of-river-projects-extended.html
The Department of Energy said Thursday it approved the extension of the feed-in tariff system for run-of-river hydro projects until the full subscription of the 250-megawatt installation target is achieved.
The department said the balance of the 250-MW installation target for run-of-river hydro remained significant at 103.887 MW.
Energy Secretary Alfonso Cusi also acted on the request of the National Renewable Energy Board, endorsing the extension of the deadline for the FIT eligibility of run-of-river hydro projects from Dec. 31, 2019 to such date as the installation target is achieved.
“Despite the extension of the FIT deadline for ROR hydropower, the 250-MW installation target remains undersubscribed. On the other hand, a substantial number of hydropower plant project which are in various stages of construction and vying for FIT eligibility were not able to meet the 31 December 2019,” Cusi said.
New travel restrictions delay power transmission projects
posted December 31, 2020 at 08:35 pm by Alena Mae S. Flores
https://manilastandard.net/business/power-technology/343373/new-travel-restrictions-delay-power-transmission-projects.html
National Grid Corp. of the Philippines on Thursday raised concerns over the delays on the completion of critical projects aimed at improving the power grid amid travel restrictions to prevent the entry of the new COVID-19 strain.
NGCP said in a statement the submarine cable laying activity in the Mindanao-Visayas Interconnection Project was facing delays, with the vessel carrying the transmission equipment unable to enter the country because of the travel ban.
NGCP said it sought the government’s consideration to allow suppliers and the shipments of essential transmission equipment to enter the country, while observing all safety protocols and strict compliance to health standards.
“NGCP understands the need to control the virus and prevent the new strain from affecting our people, but there must also be creative ways in place to balance health concerns with the need to keep the economy afloat,” the company said.
“NGCP’s critical projects cannot face any further delays as this may have an implication on the stability and reliability of power transmission services, especially with the growing demand for power. We hope this will also be taken into consideration,” said NGCP.
NGCP asked for government support as it faced numerous hurdles in ramping up construction activities of vital transmission projects affected by the quarantine restrictions in several parts of the country.
It earlier assured stakeholders it was exerting all efforts to push vital projects forward “and avert all avoidable delays.”
“We are again asking for further support, especially as regards the entry of foreign consultants and the rationalization of quarantine restrictions for critical personnel, to further mitigate delays,” NGCP said.
It said that despite being declared part of essential services, it continued to encounter issues including testing and quarantine variations among local government units, contractor and supplier delivery problems, inability of foreign experts to conduct necessary inspections due to travel clearance requirements, slowdown of manufacturing of equipment and materials from other COVID-19 affected countries and other limitations.
The company said the staggered relaxation of quarantine regulations, even those related to essential industries and construction, had not yet allowed the company to fully “return to work” for construction projects. It said the restrictions were eased, but not fully removed.
NGCP said construction works did not resume in full because of health and safety protocols and new normal standards, including COVID-19 testing of all manpower, access to transport and mobility issues and government-mandated manpower limitations.
“NGCP is eager to finish its critical projects as close to the original timelines as possible. We are also fully cognizant of the need to restrict movement and activities to help stem the spread of the virus. We are constantly trying to balance public health interests by fully equipping our team with complete PPEs and establishing stringent safety protocols in all workplaces, with the economic need to complete these critical activities,” NGCP said.
NGCP said project schedules were being reassessed as varying degrees of community quarantines remained in effect and with the limitations on travel and manpower restricted to 50 percent of the workplace capacity.
It said a work completed in a single ‘pre-COVID-19 month’ was taking longer now with projected completion within two to four ‘quarantine months.’
NGCP said that if a project was set to be completed within four months from March (beginning of quarantine measures), the new estimated time of completion would be moved 8 to 16 months from the original completion target.
“These targets continue to move as we remain bound by health and safety considerations,” the company said.
NGCP said it was constrained to temporarily suspend construction projects at the height of the nationwide Enhanced Community Quarantine to ensure compliance with health and safety regulations.
NGCP is a Filipino-led, privately owned company in charge of operating, maintaining and developing the country’s power grid, led by majority shareholders and vice chairman of the board Henry Sy Jr. and co-vice chairman Robert Coyiuto Jr.
https://manilastandard.net/business/power-technology/343373/new-travel-restrictions-delay-power-transmission-projects.html
National Grid Corp. of the Philippines on Thursday raised concerns over the delays on the completion of critical projects aimed at improving the power grid amid travel restrictions to prevent the entry of the new COVID-19 strain.
NGCP said in a statement the submarine cable laying activity in the Mindanao-Visayas Interconnection Project was facing delays, with the vessel carrying the transmission equipment unable to enter the country because of the travel ban.
NGCP said it sought the government’s consideration to allow suppliers and the shipments of essential transmission equipment to enter the country, while observing all safety protocols and strict compliance to health standards.
“NGCP understands the need to control the virus and prevent the new strain from affecting our people, but there must also be creative ways in place to balance health concerns with the need to keep the economy afloat,” the company said.
“NGCP’s critical projects cannot face any further delays as this may have an implication on the stability and reliability of power transmission services, especially with the growing demand for power. We hope this will also be taken into consideration,” said NGCP.
NGCP asked for government support as it faced numerous hurdles in ramping up construction activities of vital transmission projects affected by the quarantine restrictions in several parts of the country.
It earlier assured stakeholders it was exerting all efforts to push vital projects forward “and avert all avoidable delays.”
“We are again asking for further support, especially as regards the entry of foreign consultants and the rationalization of quarantine restrictions for critical personnel, to further mitigate delays,” NGCP said.
It said that despite being declared part of essential services, it continued to encounter issues including testing and quarantine variations among local government units, contractor and supplier delivery problems, inability of foreign experts to conduct necessary inspections due to travel clearance requirements, slowdown of manufacturing of equipment and materials from other COVID-19 affected countries and other limitations.
The company said the staggered relaxation of quarantine regulations, even those related to essential industries and construction, had not yet allowed the company to fully “return to work” for construction projects. It said the restrictions were eased, but not fully removed.
NGCP said construction works did not resume in full because of health and safety protocols and new normal standards, including COVID-19 testing of all manpower, access to transport and mobility issues and government-mandated manpower limitations.
“NGCP is eager to finish its critical projects as close to the original timelines as possible. We are also fully cognizant of the need to restrict movement and activities to help stem the spread of the virus. We are constantly trying to balance public health interests by fully equipping our team with complete PPEs and establishing stringent safety protocols in all workplaces, with the economic need to complete these critical activities,” NGCP said.
NGCP said project schedules were being reassessed as varying degrees of community quarantines remained in effect and with the limitations on travel and manpower restricted to 50 percent of the workplace capacity.
It said a work completed in a single ‘pre-COVID-19 month’ was taking longer now with projected completion within two to four ‘quarantine months.’
NGCP said that if a project was set to be completed within four months from March (beginning of quarantine measures), the new estimated time of completion would be moved 8 to 16 months from the original completion target.
“These targets continue to move as we remain bound by health and safety considerations,” the company said.
NGCP said it was constrained to temporarily suspend construction projects at the height of the nationwide Enhanced Community Quarantine to ensure compliance with health and safety regulations.
NGCP is a Filipino-led, privately owned company in charge of operating, maintaining and developing the country’s power grid, led by majority shareholders and vice chairman of the board Henry Sy Jr. and co-vice chairman Robert Coyiuto Jr.
Wind generates more than half of UK electricity
posted December 30, 2020 at 06:25 pm by AFP
https://manilastandard.net/business/power-technology/343252/wind-generates-more-than-half-of-uk-electricity.html
LONDON―Wind power accounted for more than half of Britain’s daily generated electricity on Saturday in the wake of Storm Bella, according to energy giant Drax.
The percentage of wind power in the country’s energy mix hit a record 50.67 percent on Saturday, the company said over the weekend, beating the previous record of 50 percent in August.
“For the first time ever (on Saturday), amid #StormBella, more than half of Great Britain’s electricity was generated by the wind,” Drax Group tweeted.
It added: “This is the first time ever wind has supplied the majority of the country’s power over the course of a whole day.”
The encouraging news comes ahead of COP26, the UN’s global climate change summit, which will be held in Glasgow next year.
The British government wants offshore wind farms to provide one third of the country’s electricity by 2030, as part of its strategy to reach net zero carbon emissions by 2050 to help meet its commitments under the Paris climate accord.
The UK has also placed nuclear power at the heart of its low-carbon energy policy.
“Britain has experienced a renewables revolution over the last decade with the growth of biomass, wind and solar power,” Drax said.
Added to the brightening picture, National Grid’s Electricity System Operator (NGESO) division declared Tuesday that this year was a historic year for UK renewables.
“2020 was the greenest year on record for Britain’s electricity system, with average carbon intensity―the measure of CO2 emissions per unit of electricity consumed―reaching a new low,” NGESO said in a statement.
National Grid also revealed that on Christmas Day, December 25, the share of coal in the UK electricity mix stood at zero for the first time.
That compared with just 1.8 percent the previous year―and 20 percent in 2009.
https://manilastandard.net/business/power-technology/343252/wind-generates-more-than-half-of-uk-electricity.html
LONDON―Wind power accounted for more than half of Britain’s daily generated electricity on Saturday in the wake of Storm Bella, according to energy giant Drax.
The percentage of wind power in the country’s energy mix hit a record 50.67 percent on Saturday, the company said over the weekend, beating the previous record of 50 percent in August.
“For the first time ever (on Saturday), amid #StormBella, more than half of Great Britain’s electricity was generated by the wind,” Drax Group tweeted.
It added: “This is the first time ever wind has supplied the majority of the country’s power over the course of a whole day.”
The encouraging news comes ahead of COP26, the UN’s global climate change summit, which will be held in Glasgow next year.
The British government wants offshore wind farms to provide one third of the country’s electricity by 2030, as part of its strategy to reach net zero carbon emissions by 2050 to help meet its commitments under the Paris climate accord.
The UK has also placed nuclear power at the heart of its low-carbon energy policy.
“Britain has experienced a renewables revolution over the last decade with the growth of biomass, wind and solar power,” Drax said.
Added to the brightening picture, National Grid’s Electricity System Operator (NGESO) division declared Tuesday that this year was a historic year for UK renewables.
“2020 was the greenest year on record for Britain’s electricity system, with average carbon intensity―the measure of CO2 emissions per unit of electricity consumed―reaching a new low,” NGESO said in a statement.
National Grid also revealed that on Christmas Day, December 25, the share of coal in the UK electricity mix stood at zero for the first time.
That compared with just 1.8 percent the previous year―and 20 percent in 2009.
AboitizPower soars in 2020, sets bar for 2021
By Carmelito Francisco on December 29, 2020
https://mindanaotimes.com.ph/2020/12/30/aboitizpower-soars-in-2020-sets-bar-for-2021/
Aboitiz Power Corporation, one of the leading power companies in the country, has continued to strengthen its campaign for sustainable development by enhancing its renewable energy portfolio and ensuring that its host communities benefit from its operations.
These measures have not escaped the eyes of award-giving organizations, including those international ones, as the brand has continued to etch its indelible mark in the industry.
Among these measures, the company continues to prove that it is the power supplier of choice. Recently, it renewed its partnership with First Bay Power Corp. (FBPC) for its geothermal assets. The partnership, which is about a decade old, started when the company, through its wholly-owned subsidiary AP Renewables Inc., bought from the government the MakBan and Tiwi power complexes.
By buying the assets, the company also inherited power supply agreements with power distributors including that with FBPC. The initial partnership only covered six megawatts, but this requirement has grown to 10 megawatts.
“We are happy that once again, AboitizPower will play a role in helping us achieve our sustainability goals for another 10 years,” said Ray Florence Reyes, FBPC president and general manager.
HELPING THE FIGHT AGAINST THE DEADLY VIRUS
Meanwhile, as the country has continued to grapple with the impact of COVID-19, the company has also provided key financial help through the Department of Energy’s (DOE) Energy Regulations 1-94 (ER 1-94) program, which stipulates that host communities receive one centavo for every kilowatt-hour of power generated in these areas.
Under this program, Secretary Alfonso G. Cusi of the DOE advised that host local government units can use the funds directly remitted to them to mitigate the impact of the virus based on the rules under the Bayanihan to Heal as One Act, including the setting up of mass testing and other needed facilities as well as acquiring medical test kits.
Of late, the entire group distributed directly among its host local government units about P508.2 million so they could slowly wade through the challenges that the COVID-pandemic has brought.
Emmanuel V. Rubio, group president and chief executive officer, said the company is “glad that these funds are now with our communities as these will ensure they have the resources to fund crucial projects in their areas.”
“Recent developments have also allowed them to use these remittances specifically to bolster their campaign against COVID-19,” Rubio said.
The fund has been on top of its Integrated Response and Awareness towards COVID-19 Hazards (I-REACH) campaign, an initiative designed to support its customers, particularly those in the thick of the frontlines like hospitals and other similar facilities.
Among the components of the I-REACH program is its collaboration with hospitals in providing surgical masks, sanitation and food supply to healthcare providers. The campaign also involved webinars to help its customers in their business continuity and recovery practices, supporting their transition into the new normal.
RECOGNIZING EXCELLENT SERVICE
Because of its impact especially on customers as they cope with the impact of the pandemic, the I-REACH initiative netted the company with a Silver Stevie in the 2020 International Business Awards (IBA).
The company won the award in the Most Valuable Corporate Response category as it bested entries from 63 nations and territories with 250 executives worldwide joining in picking the winners during a two-month judging process.
“We are grateful that our customer efforts have been recognized by the International Business Awards. The real victory here is seeing our partners rise toward recovery. This accolade reminds us that we are on the right track and inspires us to do even better for our partners,” said Alejandro Aboitiz, company head of Commercial Operations.
AboitizPower was also recognized in the FTSE4Good Index Series which measures performances of the company in environment, social and governance practices — a recognition that it has gotten since 2018.
“Being a FTSE4Good constituent for three years in a row is a major accomplishment for us. This affirms that we are on the right track with our commitment to being sustainable and drives us to continue strengthening our ESG standards and practices,” said Rubio, the company president and chief executive officer.
Another key facet of the company is its strong bond with its host communities and their respective local government units especially with the ER 1-94 policy
Also, the In-House Community Counsels of the Year Awards 2020 awarded the company with two more recognition as its legal team bagged the In-House Community Industry Legal Team of the Year in the Energy & Natural Resources – Asia and Diversity – Asia categories; and was also shortlisted for the Asia In-House Team of the Year award.
“We are happy that the legal community recognizes the initiatives that AP Legal implements to add value to our organization. This challenges our team to strive better and to continually live out the 1AP culture,” said the team as it was represented by Maria Consolacion Mercado, company vice president for Legal, Energy Affairs and Compliance at the awarding ceremony.
Established in 2015, the team has transcended beyond its mandate as it has implemented key initiatives like promoting diversity and inclusion within the company.
A SYMBOL OF SUSTAINABILITY
Meanwhile, the company commemorated the 21th hatch day of Pangarap, a Philippine Eagle that it has adopted in partnership with the Philippine Eagle Center in Malagos, Davao City.
Pangarap, one of the few eagles in the center that are qualified for breeding through artificial insemination, symbolizes the hope for the future of its species as it is one of the endangered species.
On February 24, representatives of the company and its subsidiaries and about 60 students and guests took part in learning activities and discussions on biodiversity conservation.
“We are so thankful to Pangarap’s Ninongs and Ninangs from Aboitiz Power Corporation for their support over the past 10 years, and for making these kinds of experiences for the kids of our neighboring communities possible,” said Carla Salvacion, center education administrator.
Rubio said the support of the company to the center “is a testament to AboitizPower’s commitment to conserving biodiversity and wildlife.”
“At AboitizPower, we strive to live by our core value of responsibility — responsibility to our customers, responsibility to our communities, and responsibility to our environment,” said the company president.
Truly, Pangarap symbolizes part of the comprehensive and well-thought sustainability campaign of the company because the delicate work for the survival of the species needs the support of well-meaning corporate individuals like AboitizPower.
https://mindanaotimes.com.ph/2020/12/30/aboitizpower-soars-in-2020-sets-bar-for-2021/
Aboitiz Power Corporation, one of the leading power companies in the country, has continued to strengthen its campaign for sustainable development by enhancing its renewable energy portfolio and ensuring that its host communities benefit from its operations.
These measures have not escaped the eyes of award-giving organizations, including those international ones, as the brand has continued to etch its indelible mark in the industry.
Among these measures, the company continues to prove that it is the power supplier of choice. Recently, it renewed its partnership with First Bay Power Corp. (FBPC) for its geothermal assets. The partnership, which is about a decade old, started when the company, through its wholly-owned subsidiary AP Renewables Inc., bought from the government the MakBan and Tiwi power complexes.
By buying the assets, the company also inherited power supply agreements with power distributors including that with FBPC. The initial partnership only covered six megawatts, but this requirement has grown to 10 megawatts.
“We are happy that once again, AboitizPower will play a role in helping us achieve our sustainability goals for another 10 years,” said Ray Florence Reyes, FBPC president and general manager.
HELPING THE FIGHT AGAINST THE DEADLY VIRUS
Meanwhile, as the country has continued to grapple with the impact of COVID-19, the company has also provided key financial help through the Department of Energy’s (DOE) Energy Regulations 1-94 (ER 1-94) program, which stipulates that host communities receive one centavo for every kilowatt-hour of power generated in these areas.
Under this program, Secretary Alfonso G. Cusi of the DOE advised that host local government units can use the funds directly remitted to them to mitigate the impact of the virus based on the rules under the Bayanihan to Heal as One Act, including the setting up of mass testing and other needed facilities as well as acquiring medical test kits.
Of late, the entire group distributed directly among its host local government units about P508.2 million so they could slowly wade through the challenges that the COVID-pandemic has brought.
Emmanuel V. Rubio, group president and chief executive officer, said the company is “glad that these funds are now with our communities as these will ensure they have the resources to fund crucial projects in their areas.”
“Recent developments have also allowed them to use these remittances specifically to bolster their campaign against COVID-19,” Rubio said.
The fund has been on top of its Integrated Response and Awareness towards COVID-19 Hazards (I-REACH) campaign, an initiative designed to support its customers, particularly those in the thick of the frontlines like hospitals and other similar facilities.
Among the components of the I-REACH program is its collaboration with hospitals in providing surgical masks, sanitation and food supply to healthcare providers. The campaign also involved webinars to help its customers in their business continuity and recovery practices, supporting their transition into the new normal.
RECOGNIZING EXCELLENT SERVICE
Because of its impact especially on customers as they cope with the impact of the pandemic, the I-REACH initiative netted the company with a Silver Stevie in the 2020 International Business Awards (IBA).
The company won the award in the Most Valuable Corporate Response category as it bested entries from 63 nations and territories with 250 executives worldwide joining in picking the winners during a two-month judging process.
“We are grateful that our customer efforts have been recognized by the International Business Awards. The real victory here is seeing our partners rise toward recovery. This accolade reminds us that we are on the right track and inspires us to do even better for our partners,” said Alejandro Aboitiz, company head of Commercial Operations.
AboitizPower was also recognized in the FTSE4Good Index Series which measures performances of the company in environment, social and governance practices — a recognition that it has gotten since 2018.
“Being a FTSE4Good constituent for three years in a row is a major accomplishment for us. This affirms that we are on the right track with our commitment to being sustainable and drives us to continue strengthening our ESG standards and practices,” said Rubio, the company president and chief executive officer.
Another key facet of the company is its strong bond with its host communities and their respective local government units especially with the ER 1-94 policy
Also, the In-House Community Counsels of the Year Awards 2020 awarded the company with two more recognition as its legal team bagged the In-House Community Industry Legal Team of the Year in the Energy & Natural Resources – Asia and Diversity – Asia categories; and was also shortlisted for the Asia In-House Team of the Year award.
“We are happy that the legal community recognizes the initiatives that AP Legal implements to add value to our organization. This challenges our team to strive better and to continually live out the 1AP culture,” said the team as it was represented by Maria Consolacion Mercado, company vice president for Legal, Energy Affairs and Compliance at the awarding ceremony.
Established in 2015, the team has transcended beyond its mandate as it has implemented key initiatives like promoting diversity and inclusion within the company.
A SYMBOL OF SUSTAINABILITY
Meanwhile, the company commemorated the 21th hatch day of Pangarap, a Philippine Eagle that it has adopted in partnership with the Philippine Eagle Center in Malagos, Davao City.
Pangarap, one of the few eagles in the center that are qualified for breeding through artificial insemination, symbolizes the hope for the future of its species as it is one of the endangered species.
On February 24, representatives of the company and its subsidiaries and about 60 students and guests took part in learning activities and discussions on biodiversity conservation.
“We are so thankful to Pangarap’s Ninongs and Ninangs from Aboitiz Power Corporation for their support over the past 10 years, and for making these kinds of experiences for the kids of our neighboring communities possible,” said Carla Salvacion, center education administrator.
Rubio said the support of the company to the center “is a testament to AboitizPower’s commitment to conserving biodiversity and wildlife.”
“At AboitizPower, we strive to live by our core value of responsibility — responsibility to our customers, responsibility to our communities, and responsibility to our environment,” said the company president.
Truly, Pangarap symbolizes part of the comprehensive and well-thought sustainability campaign of the company because the delicate work for the survival of the species needs the support of well-meaning corporate individuals like AboitizPower.
Subscribe to:
Posts (Atom)