Danessa Rivera - The Philippine Star August 27, 2021 | 12:00am
https://www.philstar.com/business/2021/08/27/2122844/erc-urges-ngcp-pursue-public-offering
MANILA, Philippines — The Energy Regulatory Commission (ERC) said the National Grid Corp. of the Philippines (NGCP) can pursue public offering by any mode as long as it meets the public listing requirement under its franchise by November.
In a disclosure to the Philippine Stock Exchange yesterday, Synergy Grid and Development Philippines Inc. (SGP) – which indirectly owns majority of NGCP – said the power regulator granted its motion for clarification whether the grid operator can comply with the listing and public offering requirement under the alternative mode of compliance.
“NGCP can undertake public listing or in substitution submit proof of the listing of any company in the (exchange) which owns or controls at least 30 percent of its outstanding capital stock, as these manners of compliance are expressly provided under RA 9511,” said the disclosure, quoting the ERC order.
In the dispositive portion of the order, the ERC said NGCP’s compliance with the dispersal of ownership requirement would be determined based on Section 8 of Republic Act 9511 or NGCP’s franchise.
The power regulator also said its order “should not be taken as allowing or prohibiting any mode of ownership dispersal allowed under the law to be undertaken by NGCP as this was not made an issue in the entire proceedings.”
Moreover, the order said the deadline for the six-month extension period granted by the ERC is on Nov. 14.
Sought for comment, ERC commissioner Floresinda Digal said the clarification issued by the commission only directs NGCP to comply with the public offer requirement within the set deadline which ever route they may take, and that its submission for compliance would be deliberated upon by the ERC.
Friday, August 27, 2021
Green group wants clearer ADB plan on coal output
Louise Maureen Simeon - The Philippine Star August 27, 2021 | 12:00am
https://www.philstar.com/business/2021/08/27/2122832/green-group-wants-clearer-adb-plan-coal-output
MANILA, Philippines — The Asian Development Bank (ADB) should clarify its plan to establish a carbon reduction facility that would buy and operate existing coal-fired power plants even as it committed to exit coal financing.
The Center for Energy, Ecology, and Development (CEED) urged the Manila-based multilateral lender to clear up on its plan on the coal buyout scheme.
ADB said it would pursue a scheme to buy out coal power plants and wind them down within 15 years to allow countries to shift to renewable energy.
ADB has allocated $1.7 million to conduct feasibility studies on the cost of early closures of coal plants.
Just three months ago, ADB said it would no longer finance any coal mining, oil, and natural gas field exploration, drilling, or extraction activities.
“When ADB made an announcement in May, we welcomed it as recognition of the bank’s obligation to atone for having fueled massive coal expansion in Asia in decades past,” CEED executive director Gerry Arances said.
Sought for comment, ADB said “details are still being hammered out” adding that it would be in a better position to discuss the matter around October during the United Nations Climate Change Conference (COP26).
Further, CEED maintained that a 15-year period would mean more years of exposure to inefficient and pollution-causing coal plants.
The research institution also questioned the bank’s decision to work with finance institutions still channeling financial support to the coal industry.
The group said it would continue to engage with the bank on its energy development directions.
“The immediate and just phase-out of coal and transition to clean and affordable energy from renewables in climate-vulnerable Philippines and the rest of Asia must be ADB’s priority in all its energy related initiatives,” Arances said.
Brownouts and a blame game
Rey Gamboa - The Philippine Star August 27, 2021 | 12:00am
https://www.philstar.com/business/2021/08/27/2122839/brownouts-and-blame-game
The buzz about brownouts these days has more to do with the coming 2022 May elections, an understandably and legitimate concern of Filipinos who fear of poll results manipulation should there be an erratic power supply situation in the country.
Overlooked, though, in the midst of this buildup of political keenness, is the likely return of brownouts because the economy is moving to a more normal gearing despite the coronavirus’ efforts to stay alive while the world is trying to smother it through vaccinations.
We, as a nation, have learned so much these past 15 months going through what is regarded as one of the harshest lockdowns imposed by a government on its people. Now, local governments have become adept at adopting granular lockdowns to as small as a household.
Vaccines, subject to the arrival of supplies, are quickly dispensed into the arms of more people who wish to be protected from severe illness and hospitalization caused by the virus, and to continue working and bringing home money.
Thus, even as this more deadly Delta variant is raging, there is scope that this lockdown – and future ones – will be focused on smaller areas and shorter. Compared to last year, more people are now able to continue working or can expect to return to work in the next few weeks.
This latest lockdown may trigger another downward revision in GDP forecast, but its length will likely not drag on for a year. The incoming “ber” months, hopefully, will allow our daily wage workers to eke out a living and look forward to a less dreary Christmas celebration.
Severe pressure
That said, the country’s power generation sector will be under severe pressure to meet a renewed robust demand for electricity in the coming months as more manufacturing and commercial establishments return to normal operations.
The onus will be, as the Department of Energy (DOE) puts it, on the private sector owners and operators of power plants, especially those that are amiss in implementing maintenance and backup measures to prevent unplanned power plant shutdowns.
The summer of 2020 was a first in many years when no rotational brownouts were called, largely because of the non-operation of many manufacturing and commercial businesses due to the COVID-19 lockdown. This year, however, as the demand for electricity started to rise, with lockdowns easing and the economy reopening, a number of red flags were raised signaling power interruptions.
The brownouts that happened from May 31 to June 2 were subjected to legislative questioning, and blame was heaped on the National Grid Corporation of the Philippines (NGCP), a privately owned company that owns the franchise to operate the country’s state-owned power grid.
Who’s at fault?
In the ensuing blame game, the DOE accused the NGCP of not securing the necessary ancillary services to serve as a back-up power source in the event of unplanned power plant outages. The NGCP, created in 2009 by law, took over many of the functions of the National Power Corp. before the government deregulated the power sector.
The DOE said that it has repeatedly asked NGCP to secure the ancillary services with power suppliers through firm contracts to bind them in delivering top-up supply whenever needed, especially when unexpected power generating plant shutdowns occur.
Without such firm contracts, suppliers can opt to refuse to sell their power to NGCP, and instead divert excess electricity to the wholesale electricity spot market, often at a high price because of a demand surge created when a base load generating plant goes off grid.
Last month, the NGCP sent the DOE a letter seeking for clarification on the DOE directive requiring the conversion of non-firm supply contracts to firm contracts which hopefully will be resolved soonest to avert another round of future outages.
Separately, the DOE also accused the NGCP of delaying its required submission of a grid operations and maintenance program (GOMP), which contains the schedule of maintenance and planned outages by power plants as required by a departmental policy.
The NGCP countered that the delays in the GOMP submission for 2020 were caused by needed clarifications from the DOE. It added, however, that the GOMP for 2021 to 2023 had already been submitted to the energy department for approval.
Clearly, these blame exchanges need to be resolved to avoid future brownouts.
DOE initiatives
For now, the DOE is banking on other measures to shore up power reserves. One will be to link more than 2,000 megawatts of stranded capacity in the Luzon grid to the transmission grid through new investments in appropriate power lines.
Energy Secretary Alfonso Cusi is also banking on the increased contribution of renewable energy (RE) to the current power supply mix, especially since solar and wind technologies have become competitive to coal and diesel fuel sources.
Efforts are, likewise, being exerted to speed up the construction of more terminals that will receive imported liquefied natural gas (LNG) to substitute for that which is pumped from the Malampaya natural gas fields which is reaching its end-life.
All the above DOE initiatives are not without their unique challenges, especially since many charter new frontiers that were never even imagined two decades ago when the government decided to privatize the electric power sector.
Even if the transfer from state hands to a deregulated environment has been slow and continues to be impeded by kinks, the power industry today is definitely on better keeling than it was before. Many may have already forgotten those days when daily brownouts disrupted our meals and sleep, and threatened to bring the whole economy to its knees.
Aboitiz to build transmission poles in Batangas
By Anna Leah E. Gonzales August 27, 2021
ABOITIZ Construction partnered with Lima Enerzone to construct overhead transmission poles in Lipa City and Malvar in Batangas to help stabilize power supply in the area.
In a statement on Thursday, Aboitiz said construction of the transmission poles will start in November and expected to be completed in six months.
The transmission poles will support 69-kiloVolt (KV) power lines that will supply power to businesses located in a 170-hectare Light Industry Science Park (LISP 4) and residential areas in a 212-hectare Pueblo de Oro in Malvar.
Lima Enerzone is a power distributor under AboitizPower Corporation that operates the distribution system of Lima Land, Inc. a Philippine Economic Zone Authority-registered economic zone in the Lipa City to Malvar area.
"In line with our mission to help businesses to thrive, Aboitiz Construction commits to deliver a quality and safe project for Lima Enerzone. Through this partnership, we aim to contribute to economic growth in Batangas by powering businesses and homes," said Levi Agoncillo, Aboitiz Construction's Vice President for Business Development, Tender Planning, Engineering, and Design.
Aboitiz Construction will handle the demolition and restoration of affected structures for the construction of the foundations and erections of steel poles. Cable stringing, clipping, and armoring will also be part of the transmission poles project.
Once completed, this project will provide a steady and reliable power supply in LISP 4 in order to support business operations, industries, and local services in the area.
Aboitiz said the project is part its initiative to enhance power delivery in Lipa City, Malvar, and surrounding areas, including Lima Technology Center through a partnership between Aboitiz Construction and Lima Enerzone.
Last January 2019, Aboitiz Construction commenced the design and construction of the 69-kV overhead transmission line project, which is expected to be completed this year.
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