News: An Open Letter from Bantay Kita to Platts on Semirara Mining’s CSR Nomination

November 24, 2015. Source: Bantay Kita - Publish What You Pay Philippines

Bantay Kita – Publish What You Pay Philippines have issued an open letter to Platts stating that Semirara Mining doesn’t deserve CSR nomination.

Semirara Mining and Power Corporation’s (SMPC) CSR project in Semirara Island has been nominated in a global award-giving body known as the energy sector’s Oscars.

Bantay Kita – Publish What You Pay Philippines believes that SMPC does not deserve the nomination for the reasons cited in the open letter below. We strongly encourage everyone to share this to your respective networks until it reaches Platts. Your support will truly be appreciated.

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Palawan southern town residents complain on frequent brownouts

By Leila Bingco-Dagot - Nov 23, 2015
http://palawan-news.com/palawan-southern-town-residents-complain-on-frequent-brownouts/

Many residents of southern Palawan towns are complaining on the frequent brownouts in their areas since the last two weeks.

One resident of Panacan 2 in Narra town who requested for anonymity went to Palawan News office to complain about the prolonged and frequent power outages in their place.

“I just cannot understand why this is happening. I went to Paleco Narra but they cannot give me the straight answer,” he said.

The towns most affected by brownouts are Brooke’s Point, Bataraza, and Sofronio Española. These areas have been experiencing almost 24-hour brownouts which angered residents as they suffer losses in their businesses.

Vicky Basilio, spokesperson of Palawan Electric Cooperative said that the brownouts are caused by the problem in the 69KV transmission lines of National Power Corporation.

“Wala namang kakapusan ng supply ng kuryente, kaya lang laging sira ang transmission line ng NAPOCOR. Nakikipag-ugnayan din po ang PALECO sa NPC na ayusin ang maintenance nila,” Basilio said.

Last week the “power family,” composed of Napocor, Paleco and independent power producers have met and discussed the possible solutions to the problem.

According to Basilio, another diesel plant of DMCI is in the pipeline which will be built in Brooke’s Point as a back-up in case Napocor will experience the same problem in the future. The proposed diesel power plant is expected to be operational by December this year.

“Plano ngayon ng DMCI na maglagay ng apat na generator sets sa Brooke’s Point na magsu-supply ng kabuuang 5.7 megawatt,” she added.

Only the towns of Quezon and Rizal are somehow spared from the power outages due to the diesel power plant of DMCI in Quezon which supplies electricity to these adjacent towns according to Basilio.

Rules revision eyed on electricity spot market suspension

by Myrna Velasco November 23, 2015
http://www.mb.com.ph/rules-revision-eyed-on-electricity-spot-market-suspension/

Revisions in the rules on suspension of trading at the Wholesale Electricity Spot Market (WESM) are being crafted, to include the function of system operator National Grid Corporation of the Philippines (NGCP) on declaration of emergency events.

Effectively, this will be a modification on Rule 6 of the WESM Rules on Intervention and Market Suspension. The Philippine Electricity Market Corporation (PEMC) and NGCP have set out the proposed rules revisions for stakeholder comments.

Suspension of WESM’s operation is generally anchored on three major conditions as prescribed under the Philippine Grid Code (PGC). These are in cases of: Emergency; a threat to system security; and force majeure.

In the rules fortification, it has been propounded that the original provision must be corrected “since intervention is only allowed if the condition is in the extreme state.”

Technically, it was emphasized that when the condition is already at extreme state, “all automatic actions already failed and this would lead in system blackout.”

The issuance of ‘emergency instructions’ by system operator NGCP has also been proposed to be broadened – not just to PEMC as market operator but to all WESM members.

The rules also intend to clarify that the SO shall not be declaring “emergency,” but rather “issue red alert notice in case of emergency condition” as specified in the Grid Code.

It was further prescribed that the reporting of such incident shall be part of the Market Intervention Report to be submitted to the Energy Regulatory Commission, Department of Energy, Philippine Electricity Market (PEM) Board and the Grid Management Committee.

The rules shall also be sorted out to address “adverse material effect in the supply of electricity” as well as “market processes” due to occurrence of specified emergency conditions and system disturbances.

As stipulated, the proposed revision shall cover an emergency condition wherein “a power system disturbance due to an outage in the transmission network or generating system, for which market processes, are inadequate for recovery.”

Additionally, an emergency event shall constitute “significant environmental phenomenon, including weather, earthquake, floods, volcanic eruptions, tsunami, storms or fires which are likely to or are significantly affecting the power system operation in for which market processes are also inadequate for recovery.”

Oil firms cut pump prices; gas by P0.75, diesel by P0.50

by Myrna Velasco November 23, 2015
http://www.mb.com.ph/oil-firms-cut-pump-prices-gas-by-p0-75-diesel-by-p0-50/

Prices at the pumps have been rolled back this week by P0.50 per liter for socially sensitive diesel; and a heftier P0.75 per liter for gasoline products.

The price of kerosene, which is generally used by poorer households for lighting as well as base for aviation fuel, had also been cut by P0.80 per liter, based on the pricing advisory of the local oil companies.

They noted that this week’s price adjustment will be effective 12:01 a.m. Tuesday (November 24); while some players opted to enforce it at 6:00 a.m.(the same day).

As of press time, the oil companies that advised on their reduced pump prices include Petron Corporation, Pilipinas Shell Petroleum Corporation and Seaoil Philippines.

For Shell, it diverted a bit from this batch of price movements as its reduction for diesel had been leaner at P0.45 per liter; as well as for gasoline at P0.65 per liter.

Petron has reiterated that this week’s cuts in pump prices had been to “reflect movements in the international oil market.”

There had been relentless softening of global oil prices due to widely believed glut in supply that cannot just be propped by decision of some oil-producing countries, including the Organization of Petroleum Exporting Countries (OPEC) to cut on quotas.

In fact, as could be gleaned from analysts’ forecasts, prices in the world market may just be in for another round of precipitous slide – similar to the phenomenon that had struck the industry last year.

They noted that the rock bottom price that must be hit this year could at $20 to $40 per barrel range.

The so-called “mega-glut” in supply cannot be overcast by recently reported downtrend in rig counts in the United States market – which portends of probable tapering production.

The events of recent years in the oil market are considerably diversion from the traditional scenarios wherein winter season had always been high-demand months for oil that were then pulling up global prices.

Oil down in Asia on oversupply fears

by Agence France-Presse November 23, 2015
http://www.mb.com.ph/oil-down-in-asia-on-oversupply-fears/

Oil prices fell in Asia on Monday, extending their slide as a stronger dollar and news that world stockpiles have reached a record high put pressure on futures.

Crude dived to two-month lows on Friday after the International Energy Agency, the world’s forecaster, said global commercial stocks had reached three billion barrels.

Mounting expectations the US will raise interest rates for the first time in almost a decade next month also drove the dollar higher on Monday, hurting commodities.

“Record levels of crude oil in storage with no let-up in production are likely to keep prices in a range in the coming weeks,” said Sanjeev Gupta, head of EY’s oil and gas practice for Asia-Pacific.

At around 0300 GMT, US benchmark West Texas Intermediate (WTI) for January delivery was down 84 cents at $41.06 while Brent crude for January was 51 cents lower at $44.15.

World oil prices have more than halved in the past 18 months as global production has outpaced consumption, and the IEA on Friday predicted demand will grow by a sluggish 1.2 million barrels next year.

The strengthening greenback, which got a boost over the weekend from bullish comments from a US Federal Reserve member, further hurt oil prices after three weeks of falls.

A higher greenback tends to dampen demand for dollar-denominated commodities among holders of weaker currencies.

Bernard Aw, market strategist at IG in Singapore, said oil prices are unlikely to stage a comeback any time soon.

“Crude oil appears to find some bottom at current levels, although it will find it difficult to break higher as bears are clearly waiting in the folds to knock it lower each time there is a rally,” he said.

More renewable energy contracts up for DOE OK

By Danessa O. Rivera (The Philippine Star) | Updated November 23, 2015 - 12:00am
http://www.philstar.com/business/2015/11/23/1524779/more-renewable-energy-contracts-doe-ok

MANILA, Philippines - The Department of Energy (DOE) is set to award renewable energy (RE) contracts auctioned under second the open and competitive selection process (OCSP 2) before this month ends, a ranking official said.

“We are hoping by end-November we will award OCSP contracts,” DOE Renewable Energy Management Bureau director Mario Marasigan said by phone when asked for updates regarding RE contracts.

The agency has been finalizing the evaluation of bids for the 21 RE deals received last May, which should be finished within the month.

Once the final review is done, the DOE will finally be able to award the RE contracts, which was originally eyed in September.

Last February, the DOE offered has 21 RE sites under OCSP 2. The tendered areas were four geothermal sites with aggregate potential capacity of up to 134 megawatts (MW) and 17 hydropower sites with capacity of up to 733.4 MW.

In May, the DOE has received eight offers for two geothermal concession areas and 31 proposals for 14 hydropower deals.

The geothermal power projects are located in Balut Island in Davao Occidental province, Amacan in Compostela Valley, Cabalian in Southern Leyte and Acupan in Benguet.

As for the 17 hydropower sites, six are located in Luzon, eight in the Visayas, and three in Mindanao.

Under the contract, the winning bidders will have two years for pre-development for less than 50 MW and five years for at least 50 MW.

The contract also covers a 25-year development stage, which can be renewed for another 25 years.

RP Energy weighs options on 600-MW Subic plant

By Iris C. Gonzales (The Philippine Star) | Updated November 23, 2015 - 12:00am
http://www.philstar.com/business/2015/11/23/1524785/rp-energy-weighs-options-600-mw-subic-plant

MANILA, Philippines - Redondo Peninsula Energy, Inc. (RP Energy) is weighing its options on the stalled 600-megawatt coal-fired power plant in Subic.

RP Energy is a consortium composed of Meralco Power Gen (MGen), Aboitiz Power Corp. and Taiwan Cogeneration International Corp.

The power project faced a lengthy legal battle with environmental groups since 2010.

In February, the Supreme Court finally ruled in favour of RP Energy but the consortium still was unable to move forward because the existing transmission facilities in the area could only accommodate 300 MW.

In a recent briefing of conglomerate Metro Pacific Investments Corp. (MPIC), Meralco group treasurer and first vice president Rafael Andrada said the consortium is in talks with the grid operator National Grid Corp. of the Philippines (NGCP) to provide additional transmission capacity that would accommodate 600 MW.

“The current position is that we’re evaluating how we can best extract values (on 300 MW and on 600 MW),” Andrada said.

For now, he said the consortium has not given up on putting up a 600 MW facility and continues to negotiate with NGCP to upgrade its existing transmission facility in the area.

“The 600 MW was good to go in terms of the permits. But the existing transmission facilities could only accommodate 300 MW so we’re looking at ways and means to be able to try and address that by securing our own right of way to provide the additional transmission facilities or discuss with NGCP on how to accommodate this project moving forward because they are up for a reset anyway so we’re looking at discussions on how they can accommodate that,” Andrada said.

The most feasible option, he said, is for NGCP to just upgrade its existing transmission facility.

“That’s the viable option as that would be the easiest because it reduces risks pertaining to acquisition of right of way,” Andrada said.

The power plant, originally targeted to be in place in 2016, faced strong opposition among environmental groups, which filed a Writ of Kalikasan case.

The Subic Bay Metropolitan Authority (SBMA) faced criticisms from some oppositors to the plant, saying that the SBMA should not allow the plant to locate in the free port zone because of its impact on tourism and the environment.

But RP Energy proponents said they are strongly committed to working with all concerned government agencies in ensuring a reliable, sustainable, and competitively priced supply of power that will contribute to the continued progress of the country.

The plant, proponents said, would provide the Luzon grid with much needed capacity and additional reserves.

SPC Power 9-mo profit down 10%

By Danessa O. Rivera (The Philippine Star) | Updated November 22, 2015 - 12:00am
http://www.philstar.com/business/2015/11/22/1524450/spc-power-9-mo-profit-down-10

MANILA, Philippines – SPC Power Corp. saw its net earnings fall by 10.3 percent in the nine months to September on account of weaker contribution from its power generation business and foreign exchange losses.

In a regulatory filing, SPC said it recorded a net income of P1.14 billion during the period, lower than the P1.27 billion in the same period in 2014.

“The lower net income was due mainly to lower earnings from the power generation business and lower equity share in the earnings of associates,” the firm said.

Its power generation business generated an income of P256.9 million in the January to September period, a 31.6 percent drop from P375.3 million last year.

SPC attributed the decline to the expiration of the operation, maintenance and service contracts (OMSCs) for the 153.1-megawatt (MW) Naga Power Plant in Cebu and the 650-MW Malaya Thermal Power Plant in Rizal in Sept. 25, 2014 and Oct. 25, 2014, respectively.

Meanwhile, total equity share in the earnings of associates also decreased by 2.7 percent to P843.7 million during the period.

The firm said this was mainly due to unrealized foreign exchange losses from the revaluation of remaining dollar-denominated obligations.

“Excluding the non-recurring foreign exchange losses, total equity share in the earnings of associates would have amounted to P945.7 million in the first nine months of 2015, 5.2 percent higher year-on-year, as the associates actually chalked up higher earnings for the period,” SPC said.

Consolidated revenues also declined by 2.2 percent to P2 billion, as a result of the termination of the OMSCs but this was partially offset by higher sales through ancillary services, bilateral contracts and the spot market.

Trans-Asia Oil to build $1-B Sual coal power plant

By Eva Visperas (The Philippine Star) | Updated November 22, 2015 - 12:00am
http://www.philstar.com/business/2015/11/22/1524460/trans-asia-oil-build-1-b-sual-coal-power-plant

SUAL, Pangasinan, Philippines – The green light for the construction of another power plant in this town has been given with the signing of a memorandum of agreement (MOA) Friday between Trans-Asia Oil and Energy Development Corp. and the municipal government in simple rites at the town municipal hall.

Trans-Asia Oil and Energy Development Corp. president and chief executive officer Francisco Viray and mayor Roberto Arcinue, joined by vice mayor Dionisio Caburao Jr., led stakeholders in the signing of the pact for the $1 billion project to be built in Barangay Bacquioen.

“We are signing a memorandum of agreement that embodies the commitment of Trans-Asia Oil to the municipality of Sual in connection with our desire to build a 900- megawatt (MW) power plant within your jurisdiction,” Viray said.

Viray said he didn’t realize that after 22 years, he is again here to thank the people of Sual for agreeing to host another power plant.

He recalled it was in 1993, when he was then president of the

National Power Corp., that he also requested the people of Sual to support the construction of the 1,218 MW coal-fired power plant in Barangay Pangascasan.

“I guess the message here is that being from Pangasinan, I’m from Lingayen, it is also but proper to bring investments of Trans-Asia Oil into the province,” he said.

He said the project did not come overnight as it took them almost a year before it was formalized.

“It is a project that will result in an inclusive growth because it will generate employment and the benefit that will redound to Sual will also generate some kind of economic development for the municipality,” Viray added.

Viray said the next step after the MOA signing is the conduct of a feasibility study even as they are now undertaking an environmental impact assessment that would lead to the issuance of an environmental compliance certificate.

Arcinue said the municipal council, presided over by vice mayor Dionisio Caburao Jr., and the barangay council of Bacquioen, led by chairman Nelson Fontanilla, endorsed the project and authorized him to enter into an agreement with Trans Asia.

He said several hearings were conducted and no one objected.

“The people of Sual strongly recommended the 900-megawatts power plant because they see this project to bring further progress to Sual,” Arcinue said.

He said among those stated in the signed MOA is giving priority to the local folks for employment in the plant and to provide cheaper and more reliable electricity even in the midst of a possible power crisis.

The mayor added that Trans Asia also committed to give a P110-million grant for the town’s priority projects like education, health, environment and agriculture and P10-million for the host barangay.

Arcinue is optimistic that more big-time investors would invest in Sual after it was declared by law as special economic zone.

In an interview with The STAR, Bacquioen barangay captain Nelson Fontanilla expressed optimism an economic boom would benefit their area with the project.

He said for the longest time, Bacquioen folks relied only on farming and fishing and few are educated.

He said with the project, their lives would tremendously improve.

Pangascasan barangay captain Elmer Brudo, whose area would host the 1,218 power plant, said they have received huge benefits including their share from real property tax, employment, and other infrastructure projects.

DOE to issue new dispatch rules for WESM this week

by Myrna Velasco November 22, 2015

http://www.mb.com.ph/doe-to-issue-new-dispatch-rules-for-wesm-this-week/

The definitive go-signal of the Department of Energy (DOE) on revised central scheduling and dispatch for the mandated enhancements on the Wholesale Electricity Spot Market (WESM) is anticipated to be issued this week.

This was indicated by Philippine Electricity Market Corporation (PEMC) President Melinda L. Ocampo, stressing this is necessary in line with plans to rework the spot market’s trading platform from hourly to five-minute interval.

“Based on my agreement with the DOE, central scheduling is tentative this 26th of November. We hope to receive the authority before the 26th,” the PEMC chief executive said.

The well-anticipated modifications in trading arrangements at WESM is in line with the new market management system (NMMS) being pushed for the gross pool-designed electricity spot market.

Aside from energy trading which had been the key feature of the spot market in its initial ten years of operations, co-optimization is pushed with the integration of reserves in the market’s central scheduling and dispatch.

With such corresponding market transformation, the pricing as basis for settlement will also shift to just ex-ante – thus, dislodging the ex-post pricing in the previous trading platform.

In a gross pool, it was further noted that the generator-trading participants “will offer their maximum available capacity for central scheduling and dispatch” – in a manner that shall also ensure system security and level playing field among generators.

The WESM operator has similarly indicated that price offer floor and cap shall be established – with prior approval from the Energy Regulatory Commission.

“For the offer cap on energy, we have until end of December on whether it will continue or changes will be adopted,” Ocampo said.

The prevailing primary cap of P32 per kilowatt hour (kWh) as well as secondary cap of P6.245 per kWh had been extended until yearend so the tripartite body – which includes the DOE, ERC and PEMC – could have more time to sort out issues and recalculate proposed adjustments in the offer caps.

Ocampo has stated previously that based on a foreign consultant’s recommendation, the secondary cap may require upward adjustment to support the viability of some investments in the sector – primarily those that have been providing peaking power.

Global ministers forecast energy diversification

by Myrna Velasco November 22, 2015

http://www.mb.com.ph/global-ministers-forecast-energy-diversification/

The past few years are considerably the upswing of renewables, but the next phase is being assessed by global energy ministers as the ‘era of diversification’ – primarily factoring in the rising role of liquefied natural gas (LNG) in the global energy trade.

Post-Fukushima, nuclear energy is also brought back into the policy discussions as the world braces for low-carbon technologies in meeting each country’s energy needs.

In the Energy Ministers Meeting hosted by the International Energy Agency (IEA) in Paris ahead of the 21st Conference of the Parties (COP 21) on Climate Change, the global energy leaders have discussed the transitory phase that the sector must go through in keeping with the challenge of abating the impact of a warming atmosphere.

US Energy Secretary Ernest Moniz, who was this week’s session chair in the IEA-hosted Ministers’ Meeting, has outlined the action plans that the global energy leaders must act on to bring the sector into its new era.

In particular, the energy leaders set emphasis on “diversification of supply and the safe and sustainable development of energy resources, new transit routes, renewable energy, low carbon technologies including nuclear energy,” as long as it is in accordance with national policies and circumstances.

Moniz similarly noted the “role of energy efficiency” in tandem with diversification play in enhancing energy security.”

The global energy leaders have similarly crafted the Ministerial Statement on Energy and Climate Change that they will lodge to the Paris’ COP 21 global climate diplomacy talks in the next two weeks.

The energy ministers have primarily noted their countries’ efforts “to place a price on carbon emissions.”

In the statement, they have fundamentally tackled “the close relationship between energy and climate change, and it highlights the need to promote policies and innovation that can facilitate a global transition to a clean energy economy.”

Fundamentally, they cited five key opportunities that countries “can adopt in the short run to advance the date by which global emissions peak – with special emphasis on energy efficiency, renewable energy, phasing out of inefficient fuel subsidies, phasing out of least-efficient coal-fired generation, and methane emissions reductions.”

Further, the ministers have stressed “the importance of taking regular further steps that build ever-increasing ambition, the importance of good statistics as well as the innovation and deployment of clean energy technologies.”

PetroSolar says Tarlac project done in Jan

November 22, 2015 9:16 pm by RITCHIE A. HORARIO
http://www.manilatimes.net/petrosolar-says-tarlac-project-done-in-jan/230614/

PetroSolar Corp., a unit of PetroEnergy Resources Corp, is eyeing completion of a 50 megawatt (MW) solar power project in Tarlac by the middle of January next year.

In a report to the Philippine Stock Exchange, PetroSolar said it was continuing with the construction of the solar farm and transmission line through contractors.

Completion of the facility in January 2016 would allow it to be included in the Energy Department’s 500-MW feed-in-tariff (FIT) allocation, the deadline for which is in March.

PetroEnergy vice president Francisco Delfin Jr. has said that the firm and its contractors were committed to completing the project “at the earliest possible time and of the highest quality.”

According to PetroSolar, much of the third quarter’s activities focused on securing permits and the requisite certificates alongside site development work.

The project, which will have an area of 486 hectares, is located near Hacienda Luisita in Tarlac. The service contract for the project was signed in March by PetroEnergy’s 90-percent subsidiary, PetroGreen Energy Corp., with the Energy department.

PetroEnergy earlier reallocated P175 million from proceeds of its stock rights offering to fund the Tarlac project instead of the second phase of the 36-MW Nabas wind power project in Aklan.

Solar power group backs Obama’s APEC challenge

November 22, 2015 9:26 pm by RITCHIE A. HORARIO REPORTER
http://www.manilatimes.net/solar-power-group-backs-obamas-apec-challenge/230626/

THE Philippine Solar Power Alliance (PSPA) supports the call of US President Barack Obama for member economies of the Asia Pacific Economic Cooperation (APEC) to prioritize investing in renewable energy (RE).

PSPA President Tetchie Capellan said APEC member economies should share their installation targets for RE.

“We call on all of them to share their installation targets for RE and the generation mix they support, including the policy instruments they would implement to achieve their targets,” Capellan said in a text message to reporters.

Capellan pointed out that each country has their own policy instruments that work for them.

In the case of the Philippines, she said businessmen in the country have already prioritized the development of RE.

“So far, investors have risked investments in RE which, in my estimate, will reach 700 megawatts (MW) for solar and 300MW for wind by 2016,” she said.

She said the Philippine government has been successful in encouraging businessmen to invest in RE through the implementation of the Feed-in-Tariff (FIT) scheme.

The FIT incentive is in line with the implementation of the Renewable Energy Act of 2008 (R.A. 9513) which seeks to spur the development of renewable energy resources in the country.

Under the said law, emerging RE generation projects will get non-fiscal incentives such as the FIT scheme, which sets a fixed tariff for the different emerging RE technologies, applicable for 20 years.

During last week’s APEC Economic Leaders’ meeting held in Manila, Obama called on APEC member countries and the private sector to push for cleaner sources of power through renewable energy.

Obama also urged APEC member-economies to invest in climate change resilience for the next generations to come.

He said extreme weather patterns brought about by climate change make small countries like the Philippines vulnerable.

Capellan also said that developing solar and wind power plants is a win-win solution to the problem of climate change which affects the country.

“We in the solar industry believe that reducing emissions by building gigawatt-size solar installations is a win-win solution for countries that are still in a growth path like the Philippines,” she added.

She pointed out that solar and wind energy not only adds capacity to the system but also addresses the growing need for power in a sustainable way.