PACE Statement in Support of the Global Climate Change March

By Palawan News -  Dec 1, 2015

http://palawan-news.com/pace-statement-in-support-of-the-global-climate-change-march/

In December 2015, leaders and representatives of 196 countries will meet in Paris for the 21^st Conference of Parties (COP 21) of the United Nations Framework Convention on Climate Change (UNFCCC).  Various countries, including the Philippines, have submitted their Intended Nationally Determined Contributions (INDC) which outlines and pronounces the climate actions each will undertake post-2020.  The INDC is therefore considered the foundation of the 2015 climate agreement.

In its INDC submission, the Philippines committed to reduce emissions by 70% conditioned on “the extent of financial resources, including technology development and transfer, and capacity building, that will be made available to the Philippine.” While this is a step in the right direction, we believe that the Philippine government should undertake decisive actions in reducing greenhouse gas (GHG) emissions. One concrete step would be to impose a moratorium on all coal-fired power plants in the pipeline.

As pointed out by the Philippine Movement for Climate Justice (PMCJ), even without new dirty and harmful energy projects, the Philippines can still fulfill its energy demands by building alternatives such as renewable energy. As of September 2015, a total of 682 renewable energy projects have been approved with a potential generating capacity of 13,574.68 MW while 242 more contracts are still pending approval (PMCJ, October 2015).

Palawan has shown that renewable energy has the potential of meeting the energy needs of the province. The Palawan Island Power Development Plan (PIPDP) shows that the least cost option for energy development in the province is to utilize the renewable energy potential of the province. Potential hydroelectric projects in Palawan have an estimated capacity of 182.47 MW, which can provide energy of up to 959 GWh based on a 60% capacity factor.  Integrating coal in the power mix will not result to the least-cost mix of Palawan within the planning period provided in the energy masterplan.

For the past three years, local communities of Narra and Aborlan and civil society groups all over Palawan and the world have been campaigning to stop a coal-fired thermal power plant planned to be built in the province. We have been protesting the provincial government’s undue influence in support of the project proponent, DMCI Powers Inc.

In August, 2015, the Palawan Council for Sustainable Development (PCSD) issued a SEP Clearance to DMCI’s for its 15-MW Circulating Fluidized Bed Coal-Fired Power Plant in the area of Barangay Bato-Bato, Narra, Palawan, highlighting the project’s support from political leaders.  Following this alarming development, civil society groups submitted a petition (with 6,185 signatures) to the Department of Environment and Natural Resources (DENR) pleading to deny its issuance of an Environmental Compliance Certificate (ECC).

DENR has yet to receive an application from DMCI’s application for an ECC for its proposed coal-fired power project in Narra.  We will therefore continue to monitor developments on DMCI’s ECC application.

Palawan communities, youth and civil society groups convey their support to the global action on climate change on November 28 and demand that the Philippine government make decisive actions to reduce greenhouse gas emissions.

We reiterate our call for continuing vigilance on energy development activities in Palawan, and most especially, sustaining our opposition to DMCI’s proposed coal-fired power plant project.

As Keiza Pacete, a youth leader of 350 Palawan aptly said, “The Palawan anti-coal resistance is hugely important not just for the people of Palawan, but for the whole of the Philippines. The government must use its powers to protect the Philippines’ last ecological frontier.”

As part of our solidarity action on November 28, we are encouraging everyone to join our #CleanEnergyPalawan campaign.  We want Palawan, as the country’s last ecological frontier,to lead the fight for clean energy.  Being the best island in the world and endowed with ample sources of renewable energy, Palawan’s fight for clean energy is part of our continuing efforts to conserve our biodiversity.  Our rich biological resources are critical to our people’s survival and will enable us to deal with the impacts of global warming.

DMCI power unit to put up diesel-fired plant in Palawan

By Danessa O. Rivera (The Philippine Star) | Updated December 1, 2015 - 12:00am
http://www.philstar.com/business/2015/12/01/1527579/dmci-power-unit-put-diesel-fired-plant-palawan

MANILA, Philippines - DMCI Power Corp., a subsidiary of Consunji-led DMCI Holdings Inc., is putting up a diesel-fired power plant in the southern part of Palawan for additional power supply to the island’s electric distribution franchise.

DMCI Power said it is building a 4.42-megawatt (MW) diesel power plant in Brooke’s Point town.

Electricity generated from this facility will supply the power requirements of three towns — Brooke’s Point, Bataraza and Sofronio Española, the firm said.

“This business decision is meant to ensure that these towns will enjoy stable and dependable power,” DMCI Power president Nestor D. Dadivas said. “It is part of our missionary electrification commitment to increase presence in underserved areas of Palawan.”

DMCI Power said this is a satellite facility that aims to augment the capacity of its plant in Irawan, Puerto Princesa City.

DMCI Power has signed an agreement with National Power Corp. and Palawan Electric Cooperative Inc. (Paleco) to provide base-load/peaking power in response to the demand of the island.

Currently, these three towns have been experiencing power instability due to line connection problems and insufficient supply in the entire province.

“In the event that there will be line outage, these three towns will continue to have power, as they will no longer have to wait long for power to become available from Puerto Princesa,” Dadivas said.

Earlier, DMCI Power bagged a 25-MW supply contract from Paleco to construct a coal-fired power plant. However, this faced strong opposition from environmentalist groups and residents.

At present, DMCI operates diesel and bunker power plants in Masbate, Palawan and Oriental Mindoro. Another diesel plant is set to operate in Sultan Kudarat by yearend.

It also recently announced it will also venture into renewable energy, particularly hydropower and biomass.

To further expand its business, DMCI Power continuously looks for opportunities through the bidding of National Power Corp.-Small Power Utilities Group (NPC-SPUG) contracts and Power Sector Asset and Liabilities Management Corp.’s privatization of power generation assets

DMCI beefs up power capacity for Palawan

by Myrna Velasco November 30, 2015
http://www.mb.com.ph/dmci-beefs-up-power-capacity-for-palawan/

The distress of Southern Palawan on power interruptions may soon be eased with the decision of DMCI Power Corporation to beef up its capacity for the area by 4.42 megawatts.

The company, in a statement to the media, has announced that it is already scheduled to build the planned diesel power plant in the town of Brooke’s Point.

According to DMCI Power President Nestor D. Dadivas, the electricity to be generated from the plant will satiate the requirements of at least three towns – Brooke’s Point, Bataraza, and Sofronio Espanola.

He added “this business decision is meant to ensure that these towns will enjoy stable and dependable power.”

Dadivas further noted these southern portions of Palawan are considered “underserved areas”, thus, this would relatively be part of the company’s missionary electrification commitment.

He stated that under current circumstances, “these towns have to endure power instability due to line connection problems and insufficient supply in the entire province.”

The DMCI Power executive expounded this would be “a satellite facility that aims to augment the capacity of the company’s plant in Irawan, Puerto Princesa City.”

DMCI Power previously won a bidding to supply the electricity needs of Palawan’s main city, but opposition to its proposed coal technology had delayed implementation timeframe on its proposed facility.

With the intervention of the Department of Energy (DOE) on an “Augmentation Plan”, the company was earlier prompted to deploy seven (7) new generating sets to provide 27 megawatts of power that shall cater to the needs of Palawan Electric Cooperative (PALECO) consumers.

DMCI Power has noted that it inked an agreement with state-run National Power Corporation and PALECO on the provision of the required base-load and peaking power to meet the island grid’s demand.

Dadivas added in the event that there will be line outage, the three towns to be served by the new diesel plant “will continue to have power, as they will no longer have to wait for power to become available from Puerto Princesa.”

Alson Power to pursue renewable energy projects next year

By Danessa O. Rivera (The Philippine Star) | Updated November 30, 2015 - 12:00am
http://www.philstar.com/business/2015/11/30/1527244/alson-power-pursue-renewable-energy-projects-next-year

MANILA, Philippines - Alson Power Group of the Alcantara family will aggressively pursue renewable energy (RE) projects starting next year, after completing its coal-fired power plants in Mindanao.

“Our growth plan, after we finish the expansion of our coal plants, our main focus will be RE,” Alsons vice president for Business Development Joseph Nocos said in an interview with The STAR.

This is a natural progression for the company, from starting with 358-megawatt (MW) consolidated capacity of diesel, bunker-fired plants and modular generator sets to developing baseload, coal plants in Mindanao.

“We are looking at the requirement of the grid. Initially it was peaking capacity then it needed baseload capacity. After baseload capacity, the opportunity now is in RE. This is because of the environment created by law and abundance of RE sources in Mindanao,” Nocos noted.

The power generation arm of listed Alsons Consolidated Resources Inc. has secured a total of 97 MW hydropower service contracts for four different rivers with the Department of Energy.

“We are already developing RE projects. We have three in Mindanao and one in Negros Occidental,” Nocos said.

The first to be built is the hydropower plant in Siguil River in Sarangani.

Nocos said the firm is now in the middle of bidding process for engineering, procurement and construction (EPC) contract.

“Tender will be completed by March 2016 and by the third or fourth quarter, we can start construction,” he said.

After the Siguil project, the company official noted they anticipate a six- to nine-month interval for the construction per project.

“By 2018, all of the four projects should already be under construction,” Nocos said.

Typically, a hydropower plant takes about three to four years to be completed.

Alsons Power is a major power player in Mindanao, operating the 103-MW diesel power plant of Mapalad Power Corp. (MPC) in Iligan City, the 55-MW power plant of Southern Philippines Power Corp. (SPPC) in Alabel, Sarangani and the 100-MW Western Mindanao Power Corp. (WMPC) plant in Zamboanga City.

It is currently building the first unit of its 2x105-MW Sarangani Energy Corp. (SEC) coal plant in Maasim, Sarangani. The second unit is expected to be finished by 2018.

It is also building the 105-MW San Ramon Power Inc. (SRPI) plant in Zamboanga City by next year, which is slated to operate by 2019.

By 2019, the firm will have a total generating capacity of 588-MW, which will fulfill more than 25 percent of Mindanao’s projected peak demand for that year.

San Miguel Energy gets clearance for 14 supply deals

By Danessa O. Rivera (The Philippine Star) | Updated November 30, 2015 - 12:00am http://www.philstar.com/business/2015/11/30/1527259/san-miguel-energy-gets-clearance-14-supply-deals

MANILA, Philippines - San Miguel Energy Corp., a power unit of diversified conglomerate San Miguel Corp., has received regulatory clearance for 14 power supply deals across the country.

San Miguel Energy is the independent power producer administrator of 1,000 megawatts of the 1,294-MW Sual coal-fired thermal plant.

The regulatory approvals cover one power supply contract (PSC) and 13 energy supply contracts (ESC) with Ilocos Sur Cooperative Inc., Pampanga Electric Cooperative Inc., First Laguna Electric Cooperative,  Nueva Vizcaya Electric Cooperative, Mountain Province Electric Cooperative, Ilocos Norte Electric Cooperative, Sorsogon II Electric Cooperative, Pangasinan III Electric Cooperative Inc., Tarlac I Electric Cooperative, and Kalinga-Apayao Electric Cooperative.

The PSC covers the supply of 30,000 kilowatt hours to the Pampanga II Electric Cooperative Inc. for a five-year period.  PECI II supplies electricity to six municipalities in the province.

In seperate decisions, the power regulator made permanent the provisional authority given to  San Miguel Energy’s ESCs with the 13 electric cooperatives (ECs).  This will allow the power firm to collect recovery charges for its invested capital as Sual IPPA from these ECs beyond the contracted period.

Of the 13 contracts, 10 cover a two-year period supply from 2010 to 2012.

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San Miguel Energy’s  deal with Nueva Ecija II- Area 1 Electric Cooperative is effective for three years while its contract with Angeles Electric Cooperative is for two years and four months.

Meanwhile, the ESC with Peninsula Electric Cooperative is only for one year.

First Gen declares cash dividends

by Myrna Velasco November 29, 2015

http://www.mb.com.ph/first-gen-declares-cash-dividends/

Lopez-owned First Gen Corporation has declared cash dividends ranging from P0.01 to P4.00 per share to stockholders of specified record date on its preferred shares.

In a disclosure to the Philippine Stock Exchange (PSE), the company has emphasized that “the cash dividends have a record date of December 23, 2015 and a payment date of January 25, 2016.”

It noted that holders of its Series B preferred shares would be entitled to cash dividends of P0.02 per share; while those with Series E preferred shares will get P0.01 per share.

The biggest cash dividend amount of P4.00 per share will be allotted to all outstanding stockholders of Series F preferred shares; while P3.8904 will be earmarked on its 120 million Series G preferred shares.

The Series G preferred shares consist of 100 million Series G shares issued by way of follow-on offering plus 20 million Series G shares topped up by parent firm First Philippine Holdings Corporation.

Cash dividend of P0.38904 will also be set for the 13,750,000 Series G preferred shares issued to First Philippine Holdings by way of private placement.

Onward, the Lopez firm will expectedly bring viable value to its shareholders as it continues to expand its portfolio – primarily on renewable energy and gas investments.

The company’s operating subsidiaries have been planning expansion of its wind capacity in Northern Luzon and will similarly beef up its RE generation with solar.

On gas ventures, the company is advancing three-phased power plant developments that will shore up Luzon grid supply from 2016 and up to the post-Malampaya phase.

With the much anticipated production decline from the country’s commercial gas field, the Lopez firm has also been eyeing to augment its investment and fuel source with the setting up of liquefied natural gas (LNG) terminal proximate to its gas-fed plants in Batangas.

The earth and its best island in the Paris climate talks

By Redempto Anda -  Nov 29, 2015

http://palawan-news.com/the-earth-and-its-best-island-in-the-paris-climate-talks/

A major meeting of over 200 countries is taking place starting this week in Paris to grapple once more with the modern plague that is climate change. With the overall failure of its predecessor summit in Copenhagen back in 2009, this attempt to forge a strong and definitive action to reduce global greenhouse gas emission is the core agenda of the 2-week United Nations COP 21 meeting.

Palawan is an active participant in an ongoing global campaign to put pressure on nations, specially the major industrialized countries, to accept binding agreements. All over the world, demonstrations are taking place to compel world leaders to take action.

With its own push to stop a planned coal plant project, Palawan on Saturday launched it’s own #CleanEnergyPalawan campaign with a solemn mass officiated by Bishop Pedro Arigo and Fr. Jasper Lahan.

The Vatican’s encyclical on climate change has thrust the powerful Catholic Church in the center of this campaign. No less than Pope Francis has encouraged the faithful to join mass demonstrations directed at the Paris talks.

Overall, the Philippines remains stuck on its reliance to coal-fed energy, with over 40 percent of its electricity supply coming from this technology acknowledged to be the most pollutive of all energy sources. The current administration believes it has no other practical options but to continue to depend on coal and hope for the best while giving policy support to renewable energy development.

Palawan, with two ominous coal plant facilities waiting in the pipeline, makes an interesting case because of the province’s unique and globally popular stature and its inherent ability to draw international attention. For the last three years, DMCI Powers Inc., a major power company, has been struggling to put up its coal plants since winning a contract from the local electric distribution franchise.

With a fast growing demand for electricity, the island province had to decide where to source its electricity. Interestingly enough at the conclusion of heated debates between civil society and the provincial government which is DMCI’s biggest supporter, the province adopted an energy masterplan essentially outsourced from an expert group of volunteers which heavily promoted tapping renewable energy sources and condemned coal as a strategically losing proposition.

DMCI’s coal plant is  dead. No one simply had done its obituary. If my Malacanang source is accurate as usual, no less than President Aquino has tacitly weighted in against the Palawan coal proposal. This is a development that had been preceded by intense campaigning and capped by compelling factors including a categorical anti-coal position taken by Sec. Ramon Jimenez of the Department of Tourism, according to my source.

Late this week, the Palawan electric cooperative awarded a major contract to a current power provider to increase its generating capacity using bunker fuel. A pollutant no less, Delta P’s bunker plant is a lesser evil replaceable by fast catching renewable sources which have already broken ground. The development of at least three run-of-river mini hydro power plants by another company is in the works and is expected to start delivering power starting late next year.

The present configuration of power supply and demand elements in Palawan virtually makes the proposed coal plant redundant and unnecessary. DMCI recently managed to secure a supplemental contract to build a 10-MW plant not fed by coal, an arrangement most likely done to provide an exit window for its coal plant.

Palawan to the world is a paradise. Conde Nast magazine said so when it’s influential magazine voted the province as the best island in the world. Bio-physically speaking, it is indeed special. It’s very high level of biological diversity makes a strong argument for conservation to be a top priority.

The province is a hashtag on its own for environmental protection. It was fairly easy for environmental activists like Gina Lopez and the Palawan civil society to surpass the 10 million mark in its signature campaign to stop mining in Palawan, a feat it recently reportedly achieved.

When Palawan was sought to be excluded from a pending legislation to strengthen the management regimes of protected areas under NIPAS became a national issue, netizens all over came down hard to bash the proponents of the suggestion.

In the context of the COP 21 talks, Palawan makes a case that there are ways to address climate issues with real solutions, given the realization that it is important to save earth’s best island and earth itself for that matter.

Delta P wins bid for additional power supply in Palawan

By Joy Tabuada -  Nov 28, 2015

http://palawan-news.com/delta-p-wins-bid-for-additional-power-supply-in-palawan/

The bid of Delta P for an additional 26.6 megawatt power supply project successfully passed the Competitive Selection Process through a Swiss Challenge by the Bids and Awards Committee of the Palawan Electric Cooperative, Friday.

BAC Chairman Nap Cortes announced prior to the selection process that there were two companies that manifested their interest during the pre-bid conference held September 19 but did not appear during the formal opening and evaluation of comparative proposals thus the BAC will award the project to Delta P, the original proponent of the proposed project.

The 26.6 megawatt power supply project is expected to be completed in the third quarter of 2016 at a total budget cost of P1.6 billion.

Gigawatt Power Inc. Senior Vice President Tito Villareal said that they will be using brand new bunker fueled engines which are now in Bauang, La Union and ready for shipment to Palawan.

GPI is one of the holding companies of Delta P. DPI is one of three independent power producers in Palawan operating a 16-MW bunker-fired power plant comprising four (4) units of 4-MW generator sets.

Villareal stressed that they went ahead of the project approval recognizing the need to address the pressing problem of a lack of a reliable, low-cost power supply on Palawan, especially during summer season.

“Without even being definitely sure of the agreement, and because we see the need, we already started clearing the land and started the foundation. Our timetable states that if everything goes on schedule, before the end of next year these engines will be supplying energy,” Villareal said.

“We will strive to give our best service to PALECO and its consumers. The consumers have suffered from continuing brownouts and blackouts and we will do our best to solve this problem,” Villareal added.

The current power supply agreement of Delta P with Paleco will expire in March 2019 and the project is in preparation for the end of the first contract with a two-year overlapped period.

Contrary to the concern that PALECO might “over contract” the power supply by giving this project to Delta P (which was the subject of a Temporary Restraining Order filed by DMCI Power Corporation with the Energy Regulatory Commission, but later dismissed), Paleco General Manager Ric Zambales assured that with the new Delta P project, Palawan will have enough generating capacity to meet increased demand in the next five years. The Delta P plant will all add stability, reliability and flexibility to the grid and complement the other independent power producers.

“We have sufficient supply of power for the next five years with the addition of 26.6 megawatt which will be operational by the third quarter of 2016,” Zambales said.

Of particular concern to the business community is the impact of the new power plant on power rates. Currently, the True Cost Generation Rate (TCGR) for the Palawan grid is about P12 per kilowatt hour.  However, consumers pay only P6.58/kwh. The difference of P5.4/kwh is made up by the Universal Charge for Missionary Electrification – a subsidy of about P5.4/kwh or over a billion pesos per year for Palawan.

There is growing concern that the UCME subsidy will be removed in the future, forcing consumers to pay the true cost of generating electricity. The winning rate submitted by Delta P was P8.22/kwh which will substantially reduce the “blended” generation rate on the Palawan grid.  With the addition of three small hydro plants with a combined capacity of 18Megawatts on the Langogan, Batang Batang and Kalikiagan Rivers over the next 3 years at a rate of P6.58/kwh, the blended rate will be further reduced and help buffer the impact of reducing the UCME subsidy.

Firm bats for contracting of Visayas Grid’s ancillary services capacity

by Myrna Velasco November 27, 2015
http://www.mb.com.ph/firm-bats-for-contracting-of-visayas-grids-ancillary-services-capacity/

Being a major investor in the solar-swamped Negros Occidental corridor, Bronzeoak Philippines of the Zabaleta group has been batting for immediate contracting of ancillary services capacity for Visayas so its power grid could be stabilized.

Bronzeoak Philippines president Jose Maria Zabaleta said “there is a need for NGCP (National Grid Corporation of the Philippines) to contract ancillary services for grid balancing.”

He indicated that while battery storage “is an ideal solution to balance the grid,” the technology has yet to make inroads in the Visayas grid’s system.

There had been concentration of solar projects primarily in the Negros area, hence, apprehensions have been raised on the impact of their generation variability.

The same fears were sounded off in the mass development of wind power capacities in Northern Luzon – with their intermittency posing some distress into reliable operations of the power grid.

Zabaleta has labeled such geographically-concentrated RE developments as a “perfect storm’, but which impact could be sorted out by properly addressing the grid’s need for reliability balancing.

For that to be resolved, both solar and wind developers have reckoned that NGCP must step up initiatives on capacity contracting for ancillary services or seriously consider battery storage as an alternative solution.

Apart from this concern, Zabaleta noted that the other limitation of RE investments had been on transmission uprating and expansion investments.

This has already been exhibited in Northern Luzon, wherein it took over a year before the wind plants achieved maximum dispatch because of delayed transmission uprating.

“The transmission line investment and upgrade process is a lengthy one,” Zabaleta has emphasized.

Transmission firm NGCP has previously cited that many of its investments are being hurdled by serious right-of-way (ROW) problems and compounded by regulatory lag on project applications.