Coal, nuclear energy seen to spike power costs

By Jordeene B. Lagare May 21, 2021
https://www.manilatimes.net/2021/05/21/business/top-business/coal-nuclear-energy-seen-to-spike-power-costs/1800072
A study by the University of the Philippines (UP) has advised against the development of coal and nuclear power plants in Luzon as utilizing these technologies could prompt a spike in electricity prices.

The study "does not recommend the addition of coal and nuclear capacity in the existing portfolio. Again, this is primarily because of the costs associated with these technologies," Michael Angelo Pedrasa, director for Electrical and Electronics Engineering Institute of the UP College of Engineering, said on Thursday.

Citing their study entitled "A LEAP-Based Energy System Model for the Philippines: Models for Electricity Demand and Generation Sector for Luzon," Pedrasa said rehabilitating the Bataan Nuclear Power Plant (BNPP) is not recommended as it will result in a slightly more expensive cost of electricity.

Likewise, Pedrasa said natural gas is the preferred source of energy. Baseload power plants refer to power facilities that provide uninterrupted power supply.

"Natural gas is the preferred choice for baseload plant technology to meet the future demand, primarily because of its relatively smaller construction and fuel cost compared to other types of conventional technology," Pedrasa said during a webinar hosted by the Management Association of the Philippines, UP College of Engineering, and UP Research & Development Foundation Inc.

To get the cheapest cost of electricity, Pedrasa said the best option is to construct a large natural gas power plant at the earliest possible time.

"[W]e recognize that we really cannot proceed with that because... because the main consequence of that step is to reduce the output of the coal-fired power plant abruptly," he added.

Under the BNPP Refurbishment scenario, Pedrasa noted the levelized cost of energy (LCOE) is P2.84 per kilowatt hour (kWh).

This was higher than the LCOE of P2.59 per kWh under the unconstrained liquefied natural gas plant addition scenario that entails developing a large natural gas plant.

For this particular study, the Low Emissions Analysis Platform (LEAP) model was used. It is a software tool developed by Stockholm Environment Institute, which Pedrasa said was widely used by several countries for energy planning as well as crafting policies and technology interventions for their low carbon development and low carbon transition.