Sunday, October 3, 2010

DOE mulls buying of non-operating power plants

By Ryan Rosauro
Inquirer Mindanao
First Posted 17:19:00 10/03/2010

Filed Under: Electricity Production & Distribution, Energy

ILIGAN CITY, Lanao del Norte, Philippines – The Department of Energy (DOE) is eyeing the acquisition and subsequent rehabilitation of currently non-operating power generation units to boost the electricity production capacity of Mindanao.
During a meeting with power industry stakeholders last October 1, Energy Secretary Rene Almendras “directed the Philippine National Oil Company-Exploration Corporation (PNOC-EC) to study the feasibility" of acquiring "non-operating generation assets under preservation or decommissioned,” a DOE press statement said.
To further stem the impact of shortfalls from the bulk power generators, the DOE is also encouraging distribution utilities to directly contract electricity supply from generating companies.
The meeting was called to principally discuss the power situation in Mindanao and explore possible solutions “to immediately address” the continuing supply shortage that results in rotating brownouts.
It was attended by representatives of the National Power Corporation (NPC), National Transmission Corporation (TransCo), National Electrification Administration (NEA), Power Sector Assets and Liabilities Management Corporation (PSALM), Philippine National Oil Company (PNOC-Exploration Corporation), National Grid Corporation of the Philippines (NGCP) and Therma Marine Inc. (TMI).
The DOE noted that during the meeting, “NGCP, TMI and other generation groups have assured the Secretary of ample power supply in Mindanao…”
Initial information presented during the meeting showed that the load dispatched from each Pulangi hydroelectricity generation plant has been reduced to 60 megawatts.
According to an NPC power plants profile, the Pulangi hydropower complex is composed of three generating units, each running at 85 megawatts. This means the complex’s output has been reduced by a total of 75 megawatts.
But an advisory from the NGCP to Mindanao distribution utilities said the power supply shortage was “due to the maintenance outage of the National Power Corporation’s (NPC) Pulangi 4 (Unit 1) and Agus 6 (Unit 1) hydro electric plants; non-operation of Therma Marine’s two power barges and reduced capabilities of some other NPC hydro plants.”
The DOE said NGCP was “unable to satisfactorily provide an explanation” on why the power plants were not fully utilized.
On September 23, two days after rotating brownouts began, the NGCP website placed the power supply shortfall in Mindanao at 104 megawatts.
Based on the NGCP advisory, the unused power generating capacity that resulted in the Mindanao brownouts could be at least 310 megawatts.
The two TMI power barges account for a total capacity of 200 megawatts; each 100-megawatt power barge is composed of two 50-megawatt engines.
One Pulangi plant is at 85 megawatts while one unit of the 5-unit Agus 6 complex is either 25 megawatts or 50 megawatts.
Amid the current supply shortfall, the DOE is also looking into allowing distribution utilities to contract power supply from TMI and other generating companies.
The DOE will assist in facilitating negotiation for such power supply contracts.
In this regard, Almendras has tasked the NEA “to assist the electric cooperatives in the appropriate contracting of power supply with TMI and other generating companies.”
Almendras is set to meet again with power industry players on Monday to further thresh their response to the Mindanao power situation.

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