By Edith Regalado The Philippine Star Updated October 27, 2011 12:00 AM
DAVAO CITY, Philippines – The Davao City council has finally approved the proposed 300-megawatt coal-fired power plant of Aboitiz Power Corp. as well as the conversion of the plant site in Binugao, Toril district.
Aboitiz Power Corp., however, is not celebrating just yet. Manuel Orig, Aboitiz Power first vice president for Mindanao affairs, said they still have to secure an approval from the Department of Agrarian Reform for the conversion of its plant site from agricultural to industrial.
Orig said they hope to secure this DAR approval by the end of the year so they could start construction of the multibillion-peso power plant by January 2012.
In Tuesday’s session, the city council approved the Aboitiz power plant project after Aboitiz satisfactorily assured the council, headed by Vice Mayor Rodrigo Duterte, that it would no longer be drilling into the Binugao aquifer for use in the power plant’s operation.
Aboitiz instead proposed to tap two free-flowing springs in the area as the main source of its water needs, along with other available surface water sources as alternatives.
The two springs reportedly produce 2,100 cubic meters of water per day while the proposed coal-fired power plant would only need 1,500 cubic meters for its daily operation.
With this, the city council readily approved the project along with the land conversion, after almost one and a half years of deliberations.
Duterte told reporters that his only concern with the project before was its plan to extract water from underground. But this changed since Aboitiz has already committed not to do any drilling in the area, he said.
Thursday, October 27, 2011
Wednesday, October 26, 2011
Energy firm offers 20MW to Ceneco for 2014
Wednesday, October 26, 2011
THE Energy Development Corporation (EDC) is offering its additional power of 20 megawatts (MW) from the expansion of the Palinpinon Geothermal Power Plant in 2014 to Central Negros Electric Cooperative (Ceneco).
"We don't have any contract yet for the 20-MW additional power from Palinpinon, Negros Oriental. If Ceneco says that they will buy, I guess EDC will offer this additional power," Dwight Maxino, EDC's vice president for Northern Negros Geothermal Production Field (NNGPF), said Tuesday.
Have something to report? Tell us in text, photos or videos.
EDC offers its geothermal power at P4.70 per kilowatt-hour, Maxino said.
The additional power of EDC is seen to at least cover the power shortage come year 2014.
Maxino also assured that the additional power goes to the Negros grid.
Right now, he said, the wells are all ready in Negros Oriental.
"We have already announced to transfer the plant from NNGPF in Palinpinon and its power goes to the Negros grid. The wells are already there and we only need a power plant," he pointed out.
The existing Palinpinon Geothermal Power Plant is now operated by Green Core, while the additional 20-megawatt plant will be operated by EDC, Maxino said.
Meanwhile, Maxino said that NNGPF is discharging two wells from Sitio Pataan.
The testing is part of our optimization program that will be completed in December and, if the result is positive, they will stop discharging in December. If not, they will continue for another three months, he explained.
"We have eight wells but only two will be discharged or tested. It means that the wells will be allowed to flow steam and water, which our technical group will measure and observe. The testing will take three months and will determine if we can sustain the production of 10 MW. We will optimize on the 10-MW capacity. In fact, right now we are preparing the designs and other pertinent documents for a 10-MW power plant," he said.
He said EDC has conducted initial assessment from the previous discharges which confirmed that they can sustain to generate five to ten megawatts," Maxino said, adding that "definitely we cannot attain the 40-MW target output that we had."
He also confirmed that, as of this time, EDC has no plans to drill more wells at the buffer zone of Mt. Kanlaon Natural Park.
"We continue to abide with all the conditions set by the Provincial Government which were stated in the Memorandum of Agreement (MOA) that we have signed. We will sustain that," he clarified.
Maxino also said that, in terms of manpower, they already had a manpower reduction program in previous years and the early retirement program and that they will sustain their present manpower because they are going to maintain the plant for the 10-megawatt capacity.
EDC shutdown NNGPF in November last year, resumed operations and then shutdown again from April to July this year. The discharging started in August this year, Maxino said.
Published in the Sun.Star Bacolod newspaper on October 26, 2011.
THE Energy Development Corporation (EDC) is offering its additional power of 20 megawatts (MW) from the expansion of the Palinpinon Geothermal Power Plant in 2014 to Central Negros Electric Cooperative (Ceneco).
"We don't have any contract yet for the 20-MW additional power from Palinpinon, Negros Oriental. If Ceneco says that they will buy, I guess EDC will offer this additional power," Dwight Maxino, EDC's vice president for Northern Negros Geothermal Production Field (NNGPF), said Tuesday.
Have something to report? Tell us in text, photos or videos.
EDC offers its geothermal power at P4.70 per kilowatt-hour, Maxino said.
The additional power of EDC is seen to at least cover the power shortage come year 2014.
Maxino also assured that the additional power goes to the Negros grid.
Right now, he said, the wells are all ready in Negros Oriental.
"We have already announced to transfer the plant from NNGPF in Palinpinon and its power goes to the Negros grid. The wells are already there and we only need a power plant," he pointed out.
The existing Palinpinon Geothermal Power Plant is now operated by Green Core, while the additional 20-megawatt plant will be operated by EDC, Maxino said.
Meanwhile, Maxino said that NNGPF is discharging two wells from Sitio Pataan.
The testing is part of our optimization program that will be completed in December and, if the result is positive, they will stop discharging in December. If not, they will continue for another three months, he explained.
"We have eight wells but only two will be discharged or tested. It means that the wells will be allowed to flow steam and water, which our technical group will measure and observe. The testing will take three months and will determine if we can sustain the production of 10 MW. We will optimize on the 10-MW capacity. In fact, right now we are preparing the designs and other pertinent documents for a 10-MW power plant," he said.
He said EDC has conducted initial assessment from the previous discharges which confirmed that they can sustain to generate five to ten megawatts," Maxino said, adding that "definitely we cannot attain the 40-MW target output that we had."
He also confirmed that, as of this time, EDC has no plans to drill more wells at the buffer zone of Mt. Kanlaon Natural Park.
"We continue to abide with all the conditions set by the Provincial Government which were stated in the Memorandum of Agreement (MOA) that we have signed. We will sustain that," he clarified.
Maxino also said that, in terms of manpower, they already had a manpower reduction program in previous years and the early retirement program and that they will sustain their present manpower because they are going to maintain the plant for the 10-megawatt capacity.
EDC shutdown NNGPF in November last year, resumed operations and then shutdown again from April to July this year. The discharging started in August this year, Maxino said.
Published in the Sun.Star Bacolod newspaper on October 26, 2011.
SNAP-Benguet offers rehabilitated Ambuklao power plant
Business Mirror
WEDNESDAY, 26 OCTOBER 2011 19:01 PAUL ANTHONY A. ISLA / REPORTER
BOKOD, Benguet—SN AboitizPower (Snap)-Benguet—the joint venture between SN Power of Norway and AboitizPower Corp.—is offering the newly rehabilitated 105-megawatt (MW) Ambuklao hydropower plant to provide ancillary services to the National Grid Corp. of the Philippines (NGCP), Emmanuel Rubio, the company’s president and chief executive officers, told reporters on Wednesday.
At the sidelines of the inauguration of the 105-MW Ambuklao hydropower plant, the Snap official said they hope to finalize the ancillary service agreement with the NGCP before the end of November. Ancillary services refer to capacity and energy needed to maintain a stable and reliable operation of the transmission system.
Apart from trading the Ambuklao plant as a merchant plant to the Wholesale Electricity Spot Market (WESM), Rubio said providing ancillary services to the NGCP would be another market for the Ambuklao plant.
Considering the Ambuklao’s capacity, Rubio said the approach for the power plant is to offer for ancillary service to NGCP similar to Snap’s other assets—the Magat and Binga hydropower plants.
To date, the electricity generated from the Ambuklao and Binga hydropower plants are fully traded at the WESM.
Rubio made it clear that they still need to secure the approval of the Energy Regulatory Commission (ERC).
“Negotiations are progressing very well. NGCP needs to sign additional capacities for ancillary and I don’t think they have met the required ancillary requirements in the grid. The Ambuklao is one of those plants that can meet that requirement. We haven’t received the certification yet, though we have passed the test to provide ancillary services conducted by NGCP,” he said.
Once certified, Rubio explained that they can enter into an ancillary supply contract with NGCP, which has to be approved by the ERC.
He added that they are even offering the entire plant’s output for ancillary service.
Rubio noted that the NGCP may consider Snap-Benguet as a better source of ancillary services since its rates are highly competitive compared to the rates of other power plants.
“Hydropower plants are the ones preferred by the NGCP to provide ancillary services because of their cost competitiveness. In terms of performance compared to diesel and coal, it cycles much faster than those plants,” he said.
In 2008 Snap-Benguet acquired the Ambuklao-Binga hydropower complex through a bidding done by the Power Sector Assets and Liabilities Management Corp. That same year, the Ambuklao plant’s rehabilitation began, to restore the plant and increase its capacity to 105 MW from 75 MW after two years of rehabilitation following a 12-year shutdown.
Snap-Benguet spent an additional $280 million on top of the $325-million purchase price to rehabilitate and refurbish the Ambuklao and Binga hydropower plants not only to restore the capacities but to also increase them by 105 MW and 120 MW, respectively.
The Ambuklao plant is now also registered under the Clean Development Mechanism and expected to generate 180,000 carbon credits, which is the realization of Snap-Benguet and the government’s strong and long-term commitment to renewable power for all.
WEDNESDAY, 26 OCTOBER 2011 19:01 PAUL ANTHONY A. ISLA / REPORTER
BOKOD, Benguet—SN AboitizPower (Snap)-Benguet—the joint venture between SN Power of Norway and AboitizPower Corp.—is offering the newly rehabilitated 105-megawatt (MW) Ambuklao hydropower plant to provide ancillary services to the National Grid Corp. of the Philippines (NGCP), Emmanuel Rubio, the company’s president and chief executive officers, told reporters on Wednesday.
At the sidelines of the inauguration of the 105-MW Ambuklao hydropower plant, the Snap official said they hope to finalize the ancillary service agreement with the NGCP before the end of November. Ancillary services refer to capacity and energy needed to maintain a stable and reliable operation of the transmission system.
Apart from trading the Ambuklao plant as a merchant plant to the Wholesale Electricity Spot Market (WESM), Rubio said providing ancillary services to the NGCP would be another market for the Ambuklao plant.
Considering the Ambuklao’s capacity, Rubio said the approach for the power plant is to offer for ancillary service to NGCP similar to Snap’s other assets—the Magat and Binga hydropower plants.
To date, the electricity generated from the Ambuklao and Binga hydropower plants are fully traded at the WESM.
Rubio made it clear that they still need to secure the approval of the Energy Regulatory Commission (ERC).
“Negotiations are progressing very well. NGCP needs to sign additional capacities for ancillary and I don’t think they have met the required ancillary requirements in the grid. The Ambuklao is one of those plants that can meet that requirement. We haven’t received the certification yet, though we have passed the test to provide ancillary services conducted by NGCP,” he said.
Once certified, Rubio explained that they can enter into an ancillary supply contract with NGCP, which has to be approved by the ERC.
He added that they are even offering the entire plant’s output for ancillary service.
Rubio noted that the NGCP may consider Snap-Benguet as a better source of ancillary services since its rates are highly competitive compared to the rates of other power plants.
“Hydropower plants are the ones preferred by the NGCP to provide ancillary services because of their cost competitiveness. In terms of performance compared to diesel and coal, it cycles much faster than those plants,” he said.
In 2008 Snap-Benguet acquired the Ambuklao-Binga hydropower complex through a bidding done by the Power Sector Assets and Liabilities Management Corp. That same year, the Ambuklao plant’s rehabilitation began, to restore the plant and increase its capacity to 105 MW from 75 MW after two years of rehabilitation following a 12-year shutdown.
Snap-Benguet spent an additional $280 million on top of the $325-million purchase price to rehabilitate and refurbish the Ambuklao and Binga hydropower plants not only to restore the capacities but to also increase them by 105 MW and 120 MW, respectively.
The Ambuklao plant is now also registered under the Clean Development Mechanism and expected to generate 180,000 carbon credits, which is the realization of Snap-Benguet and the government’s strong and long-term commitment to renewable power for all.
ERC issues compliance certificates to 2 power plants
Business Mirror
WEDNESDAY, 26 OCTOBER 2011 18:59 PAUL ANTHONY A. ISLA / REPORTER
THE Energy Regulatory Commission (ERC) said on Wednesday that it has recently approved the renewal of the Certificate of Compliance (COC) of Bantayan Island Power Corp.’s (Bipcor) 6.64-megawatt (MW) diesel power plant.
ERC said it has also recently issued a provisional COC to Oriental Mindoro Electric Cooperative Inc.’s (Ormeco) 1.6-MW Dulangan mini-hydroelectric power plant located in Naujan, Oriental Mindoro.
Bipcor’s diesel power plant, according to ERC, is located in Bantayan, Bantayan Island, Cebu.
ERC said Bipcor is a stock corporation that was registered with the Securities and Exchange Commission (SEC) in February 2004 with the primary purpose of designing, developing, constructing and operating diesel generating plants. It is 60 percent owned and operated by Beacon Power Inc., a Philippine corporation.
Bipcor operates in a Small Power Utilities Grid (SPUG) area and has a connection agreement with the Bantayan Island Electric Cooperative Inc. (Banelco).
The ERC said the 6.64-MW plant is directly connected to the 13.2-kilovolt (kV) transmission system of Banelco.
The ERC added that the Power Supply Agreement (PSA) with Banelco is on a Build- Operate-Own (BOO) scheme with a 15-year cooperation period that started in June 2004. The PSA was approved by the ERC in February 2006.
The ERC said the BOO includes the maintenance and management of two units of three-MW bunker-fired diesel power plant that will be utilized as base load source of power. Additional smaller units that support the power plant include two units of 340-kilowatt (kW) Volvo diesel engine generating sets that will serve as peak load source of power.
Ormeco is a non-profit, non-stock rural electric cooperative registered in February 1973 with the National Electrification Administration (NEA).
Ormeco owns and operates the Dulangan Mini-Hydroelectric Power Plant (MHEPP) which was commissioned in December 1989.
The 1.6 MW plant, composed of four units, has a rated capacity of 400-kW and is a run-of-river type hydroelectric power plant located along the Dulangan River of Naujan.
The ERC said it issued a provisional COC to Ormeco based on its urgent request CO. The ERC added that the final COC renewal will be granted only upon the submission of the Memorandum of Agreement (MOA) with the Department of Energy (DOE) regarding the “Benefits to Host Communities” under Energy Regulation 1-94 and the Environmental Compliance Certificate (ECC), among others.
The ERC said the Bipcor and Ormeco’s generating plants are operating in isolated grids and are not connected to the high voltage transmission system. Both generating plants are not subject to the 30-percent and 25-percent market share limitations per grid and national grid, respectively.
The renewal of a COC is required of generation companies and must be filed at least six months prior to the COC’s expiration pursuant to the Revised Rules for the Issuance of COCs for Generation Companies and Facilities promulgated by the ERC and which took effect in April 2010.
“To protect the welfare of the electricity consumers, the renewal of COCs is required by the ERC to ensure that Generation Companies are still operating, and can maintain operating for another 5 years at the environmental, financial and technical standards required by law,” Zenaida Cruz-Ducut, ERC Chairperson, said.
WEDNESDAY, 26 OCTOBER 2011 18:59 PAUL ANTHONY A. ISLA / REPORTER
THE Energy Regulatory Commission (ERC) said on Wednesday that it has recently approved the renewal of the Certificate of Compliance (COC) of Bantayan Island Power Corp.’s (Bipcor) 6.64-megawatt (MW) diesel power plant.
ERC said it has also recently issued a provisional COC to Oriental Mindoro Electric Cooperative Inc.’s (Ormeco) 1.6-MW Dulangan mini-hydroelectric power plant located in Naujan, Oriental Mindoro.
Bipcor’s diesel power plant, according to ERC, is located in Bantayan, Bantayan Island, Cebu.
ERC said Bipcor is a stock corporation that was registered with the Securities and Exchange Commission (SEC) in February 2004 with the primary purpose of designing, developing, constructing and operating diesel generating plants. It is 60 percent owned and operated by Beacon Power Inc., a Philippine corporation.
Bipcor operates in a Small Power Utilities Grid (SPUG) area and has a connection agreement with the Bantayan Island Electric Cooperative Inc. (Banelco).
The ERC said the 6.64-MW plant is directly connected to the 13.2-kilovolt (kV) transmission system of Banelco.
The ERC added that the Power Supply Agreement (PSA) with Banelco is on a Build- Operate-Own (BOO) scheme with a 15-year cooperation period that started in June 2004. The PSA was approved by the ERC in February 2006.
The ERC said the BOO includes the maintenance and management of two units of three-MW bunker-fired diesel power plant that will be utilized as base load source of power. Additional smaller units that support the power plant include two units of 340-kilowatt (kW) Volvo diesel engine generating sets that will serve as peak load source of power.
Ormeco is a non-profit, non-stock rural electric cooperative registered in February 1973 with the National Electrification Administration (NEA).
Ormeco owns and operates the Dulangan Mini-Hydroelectric Power Plant (MHEPP) which was commissioned in December 1989.
The 1.6 MW plant, composed of four units, has a rated capacity of 400-kW and is a run-of-river type hydroelectric power plant located along the Dulangan River of Naujan.
The ERC said it issued a provisional COC to Ormeco based on its urgent request CO. The ERC added that the final COC renewal will be granted only upon the submission of the Memorandum of Agreement (MOA) with the Department of Energy (DOE) regarding the “Benefits to Host Communities” under Energy Regulation 1-94 and the Environmental Compliance Certificate (ECC), among others.
The ERC said the Bipcor and Ormeco’s generating plants are operating in isolated grids and are not connected to the high voltage transmission system. Both generating plants are not subject to the 30-percent and 25-percent market share limitations per grid and national grid, respectively.
The renewal of a COC is required of generation companies and must be filed at least six months prior to the COC’s expiration pursuant to the Revised Rules for the Issuance of COCs for Generation Companies and Facilities promulgated by the ERC and which took effect in April 2010.
“To protect the welfare of the electricity consumers, the renewal of COCs is required by the ERC to ensure that Generation Companies are still operating, and can maintain operating for another 5 years at the environmental, financial and technical standards required by law,” Zenaida Cruz-Ducut, ERC Chairperson, said.
Metro Pacific consolidates Meralco stake in block sale
Manila Standard Today
by Jenniffer B. Austria
Metro Pacific Investments Corp. completed the consolidation of its stake in power retailer Manila Electric Co. with the block sale of some 68.8 million shares worth P15.13 billion Tuesday.
The Philippine Stock Exchange said it approved the block sale at P220 apiece.
Metro Pacific assistant vice president Melody del Rosario confirmed the block sale in a text message.
Metro Pacific Thursday disclosed that Beacon Electric Asset Holdings Inc., a special purpose company it jointly owns with PLDT Communications and Energy Ventures Inc., was acquiring an additional 6.1- percent interest in Meralco.
The 68.8 million Meralco shares were owned by PLDT Communications.
PLDT Communications in exchange agreed to purchase an additional 1.199 billion preferred shares of Beacon for P15.136 billion.
The acquisition will bring Beacon Electric’s economic and voting interest in Meralco to 45.352 percent.
“More importantly, it consolidates the wider group’s shareholding into Beacon Electric so that both MPIC and PCEV shareholders enjoy the full value of our Meralco investment,” Metro Pacific president Jose Ma. Lim said.
Beacon Electric in May signed an P11-billion loan agreement to fund the acquisition of an additional 4-percent stake in Meralco owned by businessman Eusebio Tanco.
First Metro Investment Corp. and PNB Capital & Investment Corp. arranged the loan.
by Jenniffer B. Austria
Metro Pacific Investments Corp. completed the consolidation of its stake in power retailer Manila Electric Co. with the block sale of some 68.8 million shares worth P15.13 billion Tuesday.
The Philippine Stock Exchange said it approved the block sale at P220 apiece.
Metro Pacific assistant vice president Melody del Rosario confirmed the block sale in a text message.
Metro Pacific Thursday disclosed that Beacon Electric Asset Holdings Inc., a special purpose company it jointly owns with PLDT Communications and Energy Ventures Inc., was acquiring an additional 6.1- percent interest in Meralco.
The 68.8 million Meralco shares were owned by PLDT Communications.
PLDT Communications in exchange agreed to purchase an additional 1.199 billion preferred shares of Beacon for P15.136 billion.
The acquisition will bring Beacon Electric’s economic and voting interest in Meralco to 45.352 percent.
“More importantly, it consolidates the wider group’s shareholding into Beacon Electric so that both MPIC and PCEV shareholders enjoy the full value of our Meralco investment,” Metro Pacific president Jose Ma. Lim said.
Beacon Electric in May signed an P11-billion loan agreement to fund the acquisition of an additional 4-percent stake in Meralco owned by businessman Eusebio Tanco.
First Metro Investment Corp. and PNB Capital & Investment Corp. arranged the loan.
Ambuklao hydro plant resumes full operations
Manila Standard Today
by Alena Mae S. Flores
BOKOD, Benguet—SN Aboitiz Power-Benguet will fully resume operation of the Ambuklao hydroelectric power plant today after being shut down for 13 years.
“The inauguration of the Ambuklao plant’s new 105-MW capacity will make available clean and renewable energy to millions of Filipinos in the Luzon Grid,” SNAP-Benguet said in a statement.
SNAP-Benguet successfully commissioned the first two 35-MW units of the Ambuklao plant on June 1. The remaining unit will go on full operation today.
SNAP-Benguet acquired the original 75-MW Ambuklao and 100-MW Binga hydroelectric power plants in the Bokod and Itogon, respectively, in 2008.
The plants were considered among the first large hydroelectric power plants of National Power Corp. when they were constructed in the 1950s.
“When we took over the Ambuklao plant in 2008, it had been shut down and under preservation by Napocor for close to 9 years [since 1999] due to technical problems sustained after a major earthquake in 1990,” the company said.
“Several attempts were made by Napocor to restore the capacity of the plant prior to our acquisition, to no avail,” it said.
SNAP-Benguet decided to rehabilitate the Ambuklao plant and make it operational again.
SNAP-Benguet, the joint venture of SN Power (majority owned by Statkraft of Norway, the leading renewable energy provider in Europe) and Aboitiz Power Corp., infused $280 million, in addition to the $325-million purchase price, to embark on the rehabilitation and refurbishment of the Ambuklao and Binga plants.
by Alena Mae S. Flores
BOKOD, Benguet—SN Aboitiz Power-Benguet will fully resume operation of the Ambuklao hydroelectric power plant today after being shut down for 13 years.
“The inauguration of the Ambuklao plant’s new 105-MW capacity will make available clean and renewable energy to millions of Filipinos in the Luzon Grid,” SNAP-Benguet said in a statement.
SNAP-Benguet successfully commissioned the first two 35-MW units of the Ambuklao plant on June 1. The remaining unit will go on full operation today.
SNAP-Benguet acquired the original 75-MW Ambuklao and 100-MW Binga hydroelectric power plants in the Bokod and Itogon, respectively, in 2008.
The plants were considered among the first large hydroelectric power plants of National Power Corp. when they were constructed in the 1950s.
“When we took over the Ambuklao plant in 2008, it had been shut down and under preservation by Napocor for close to 9 years [since 1999] due to technical problems sustained after a major earthquake in 1990,” the company said.
“Several attempts were made by Napocor to restore the capacity of the plant prior to our acquisition, to no avail,” it said.
SNAP-Benguet decided to rehabilitate the Ambuklao plant and make it operational again.
SNAP-Benguet, the joint venture of SN Power (majority owned by Statkraft of Norway, the leading renewable energy provider in Europe) and Aboitiz Power Corp., infused $280 million, in addition to the $325-million purchase price, to embark on the rehabilitation and refurbishment of the Ambuklao and Binga plants.
SOUTHERN COMFORT: The Mindanao power situation: Finding fault or finding solutions?
By Edwin G. Espejo | Wednesday| October 26, 2011
First of two parts
GENERAL SANTOS CITY (MindaNews/25 October) — With brownouts again becoming a regular occurrence in Mindanao, expect the debate on energy sources to intensify.
But it is wrong for advocates of renewable energies to accuse about everybody of contriving a power crisis to justify the construction of fossil-fired power plants.
Those who insist that there is no shortage of power supply or even refuse to acknowledge that two or three years from now Mindanao will suffer tremendously due to power outages are doing the people in the island even greater disservice. Ignoring the present precarious balance of the island’s power supply could lead into laying out wrong solutions and relegate the Mindanao power situation into endless debates about long-term and strategic alternatives that do not give immediate relief to the people.
There is no doubt the path to clean and steady power supply is renewable energy.
Anybody who says otherwise can only be motivated by greed first, public service only second.
But as someone who always looks at things in their proper perspectives, it will always be looking at Mindanao’s energy crisis not solely caused by lack of generating capacities or renewable energy sources.
In fact, Mindanao has exceeded the 50-percent renewable energy source index with over 1,000 megawatts of installed capacities from the Agus and Pulangi River hydropower plant complexes and the 105-megawatt Mt. Apo Geothermal Plant.
Yet, Mindanao still suffers and will continue to suffer from recurring brownouts because no new capacities have been commissioned for the Mindanao grid since 2006, when the 210-MW coal-fired power plant of STEAG in Villanueva, Misamis Oriental went into commercial stream.
The Agus River hydropower plant complex could no longer deliver the 700-MW or so installed capacity in full because of antiquated facilities and aging turbines. The Pulangi hydropower plant is operating at least 20-percent less of its installed capacity (255MW) due to heavy silt. These two hydropower plants are only operating at a combined capacity of 600 megawatts out of possible 900MW.
The National Power Corporation (NPC) also lost 215MW of power source when it sold PB 117 and PB118 to the Aboitiz-owned Therma Marine Inc. That is 215 megawatts off the Mindanao grid.
The Iligan Diesel Power Plant is operating at half its 100MW installed capacity due to neglect and poor maintenance schedule. It is now owned by the Iligan City government.
In effect, only roughly 600 megawatts of hydro energy are available from NPC to service its Mindanao grid from where most electric cooperatives and distribution utilities are sourcing their power supply requirement. The rest of the 1,300MW actual power supply demand for the island are sourced from independent power producers (IPPs) such as the diesel-power Southern Philippines Power Plant (55MW), the Western Mindanao Power Plant (100MW), and STEAG.
Distribution utilities are now forced to buy whatever shortfall of supply from NPC and IPPs. In the case of the South Cotabato II Electric Cooperative, it entered into supply contract with Therma Marine for additional 18 megawatts for the next three years after NPC reduced its supply to the distribution cooperative by 30 megawatts. Davao Light and Power Corporation also bought all 40 megawatts of hydro energy generated by its sister company Hedcor in Sibulan, Davao del Sur.
Mindanao used to enjoy decades of cheap and reliable power supply from hydro sources when the Agus River Complex was built and commissioned in the 1960s and onwards.
The island’s development, however, is one that was never static. By the late 1980s, the Agus River could no longer serve the power needs of the islands.
In the early 1990s, Mindanao plunged into darkness as demand far outstripped the supply.
Then President Fidel Ramos allowed independent power producers to buy power barges and construct diesel power plants to augment and fill the gap in power demand NPC could no longer supply.
Eventually, the Arroyo administration passed Republic Act 9136 or the Electric Power Industry Reform Act of 2001 to rationalize the power industry. The law effectively dismantled the monopoly of NPC and stripped the latter of its power to generate power capacities.
This opened up the energy industry to the private sector.
NPC’s transmission operation was also privatized (now the National Grid Corporation of the Philippines).
The IPPs brought temporary relief for consumers in Mindanao.
But it did not last long. (Edwin G. Espejo writes for www.asiancorrespondent.com)
First of two parts
GENERAL SANTOS CITY (MindaNews/25 October) — With brownouts again becoming a regular occurrence in Mindanao, expect the debate on energy sources to intensify.
But it is wrong for advocates of renewable energies to accuse about everybody of contriving a power crisis to justify the construction of fossil-fired power plants.
Those who insist that there is no shortage of power supply or even refuse to acknowledge that two or three years from now Mindanao will suffer tremendously due to power outages are doing the people in the island even greater disservice. Ignoring the present precarious balance of the island’s power supply could lead into laying out wrong solutions and relegate the Mindanao power situation into endless debates about long-term and strategic alternatives that do not give immediate relief to the people.
There is no doubt the path to clean and steady power supply is renewable energy.
Anybody who says otherwise can only be motivated by greed first, public service only second.
But as someone who always looks at things in their proper perspectives, it will always be looking at Mindanao’s energy crisis not solely caused by lack of generating capacities or renewable energy sources.
In fact, Mindanao has exceeded the 50-percent renewable energy source index with over 1,000 megawatts of installed capacities from the Agus and Pulangi River hydropower plant complexes and the 105-megawatt Mt. Apo Geothermal Plant.
Yet, Mindanao still suffers and will continue to suffer from recurring brownouts because no new capacities have been commissioned for the Mindanao grid since 2006, when the 210-MW coal-fired power plant of STEAG in Villanueva, Misamis Oriental went into commercial stream.
The Agus River hydropower plant complex could no longer deliver the 700-MW or so installed capacity in full because of antiquated facilities and aging turbines. The Pulangi hydropower plant is operating at least 20-percent less of its installed capacity (255MW) due to heavy silt. These two hydropower plants are only operating at a combined capacity of 600 megawatts out of possible 900MW.
The National Power Corporation (NPC) also lost 215MW of power source when it sold PB 117 and PB118 to the Aboitiz-owned Therma Marine Inc. That is 215 megawatts off the Mindanao grid.
The Iligan Diesel Power Plant is operating at half its 100MW installed capacity due to neglect and poor maintenance schedule. It is now owned by the Iligan City government.
In effect, only roughly 600 megawatts of hydro energy are available from NPC to service its Mindanao grid from where most electric cooperatives and distribution utilities are sourcing their power supply requirement. The rest of the 1,300MW actual power supply demand for the island are sourced from independent power producers (IPPs) such as the diesel-power Southern Philippines Power Plant (55MW), the Western Mindanao Power Plant (100MW), and STEAG.
Distribution utilities are now forced to buy whatever shortfall of supply from NPC and IPPs. In the case of the South Cotabato II Electric Cooperative, it entered into supply contract with Therma Marine for additional 18 megawatts for the next three years after NPC reduced its supply to the distribution cooperative by 30 megawatts. Davao Light and Power Corporation also bought all 40 megawatts of hydro energy generated by its sister company Hedcor in Sibulan, Davao del Sur.
Mindanao used to enjoy decades of cheap and reliable power supply from hydro sources when the Agus River Complex was built and commissioned in the 1960s and onwards.
The island’s development, however, is one that was never static. By the late 1980s, the Agus River could no longer serve the power needs of the islands.
In the early 1990s, Mindanao plunged into darkness as demand far outstripped the supply.
Then President Fidel Ramos allowed independent power producers to buy power barges and construct diesel power plants to augment and fill the gap in power demand NPC could no longer supply.
Eventually, the Arroyo administration passed Republic Act 9136 or the Electric Power Industry Reform Act of 2001 to rationalize the power industry. The law effectively dismantled the monopoly of NPC and stripped the latter of its power to generate power capacities.
This opened up the energy industry to the private sector.
NPC’s transmission operation was also privatized (now the National Grid Corporation of the Philippines).
The IPPs brought temporary relief for consumers in Mindanao.
But it did not last long. (Edwin G. Espejo writes for www.asiancorrespondent.com)
Mindanao hit by rotating brownouts; power supply reserves go negative
Manila Bulletin
October 26, 2011, 2:24am
MANILA, Philippines — With the business climate already dampened by renewed insurgency-related violence, Mindanao’s on-and-off economic boom suffered another dampener this week as rotating brownouts worsened due to a severe drop in the island’s electricity supply.
According to the National Grid Corporation of the Philippines, which runs the power distribution network in the entire country, electricity supply in Mindanao was short by 81 megawatts of electricity as of Friday, forcing several areas in southern Philippines to go dark intermittently as the national government struggled to control a renewed flare-up of violence in Basilan province, where 19 soldiers from the elite Army Scout Rangers were killed last Wednesday in a clash with rebels from the separatist Moro Islamic Liberation Front (MILF).
The NGCP said it put Mindanao “on red alert” effective 11 a.m. last Wednesday “due to zero contingency reserve brought about by planned outage and reduced capability of power plants.”
According to the NGCP, it lost 105 megawatts of electricity supply because of the shutdown of one of the two generating plants of Steag State Power, Inc. in Villanueva, Misamis Oriental for scheduled maintenance repairs.
The state-owned National Power Corp. has also “derated” or reduced the generating capacity of its ageing hydro-electric and diesel power plants in various parts of Mindanao to prevent further degradation of its facilities, it added.
The NGCP said the NPC has downgraded the capacity of its Agus 1 hydroelectric power plant to 35 MW from its original 80 MW, Agus 2 to 80 MW from 180 MW, Agus 4 to 100 MW from 158 MW, Agus 5 to 30 MW from 55 MW, Agus 6 to 130 MW from 200 MW, Agus 7 to 25 MW from 54 MW, Pulangi 4 to 200 MW from 255 MW, and the Zamboanga City-based Western Mindanao Power Corp. diesel plants to 90 MW from 100 MW.
The Department of Energy had previously warned of a severe electricity supply situation in Mindanao starting next year when the summer season starts anew and drains water reserves in Mindanao’s hydro-electric power plant facilities.
Several private companies have started new power plant projects to offset the expected power supply shortage, among them Aboitiz Power Corporation which is proposing a 300-megawatt coal-fired power plant in Davao and the Alcantara Group which is building a 200-megawatt coal-fired power plant in Sarangani province and a 100-megawatt power plant in San Ramon district in Zamboanga City.
October 26, 2011, 2:24am
MANILA, Philippines — With the business climate already dampened by renewed insurgency-related violence, Mindanao’s on-and-off economic boom suffered another dampener this week as rotating brownouts worsened due to a severe drop in the island’s electricity supply.
According to the National Grid Corporation of the Philippines, which runs the power distribution network in the entire country, electricity supply in Mindanao was short by 81 megawatts of electricity as of Friday, forcing several areas in southern Philippines to go dark intermittently as the national government struggled to control a renewed flare-up of violence in Basilan province, where 19 soldiers from the elite Army Scout Rangers were killed last Wednesday in a clash with rebels from the separatist Moro Islamic Liberation Front (MILF).
The NGCP said it put Mindanao “on red alert” effective 11 a.m. last Wednesday “due to zero contingency reserve brought about by planned outage and reduced capability of power plants.”
According to the NGCP, it lost 105 megawatts of electricity supply because of the shutdown of one of the two generating plants of Steag State Power, Inc. in Villanueva, Misamis Oriental for scheduled maintenance repairs.
The state-owned National Power Corp. has also “derated” or reduced the generating capacity of its ageing hydro-electric and diesel power plants in various parts of Mindanao to prevent further degradation of its facilities, it added.
The NGCP said the NPC has downgraded the capacity of its Agus 1 hydroelectric power plant to 35 MW from its original 80 MW, Agus 2 to 80 MW from 180 MW, Agus 4 to 100 MW from 158 MW, Agus 5 to 30 MW from 55 MW, Agus 6 to 130 MW from 200 MW, Agus 7 to 25 MW from 54 MW, Pulangi 4 to 200 MW from 255 MW, and the Zamboanga City-based Western Mindanao Power Corp. diesel plants to 90 MW from 100 MW.
The Department of Energy had previously warned of a severe electricity supply situation in Mindanao starting next year when the summer season starts anew and drains water reserves in Mindanao’s hydro-electric power plant facilities.
Several private companies have started new power plant projects to offset the expected power supply shortage, among them Aboitiz Power Corporation which is proposing a 300-megawatt coal-fired power plant in Davao and the Alcantara Group which is building a 200-megawatt coal-fired power plant in Sarangani province and a 100-megawatt power plant in San Ramon district in Zamboanga City.
105-MW Ambuklao now up and running
By: Amy R. Remo
Philippine Daily Inquirer
1:08 am | Wednesday, October 26th, 2011
SN Aboitiz Power (SNAP) Benguet Inc. will fully commission on Tuesday the 105-megawatt Ambuklao hydroelectric power plant after the company rehabilitated the facility that was last seen running in 1999.
“When we took over the Ambuklao Plant in 2008, it had been shut down and under preservation by National Power Corp. (Napocor) for close to nine years due to technical problems sustained after a major earthquake in 1990,” said SNAP president and CEO Emmanuel V. Rubio. “Several attempts were made by Napocor to restore the capacity of the plant prior to our acquisition, to no avail.”
Rubio said SNAP-Benguet gave its commitment to the government that it would revive the Ambuklao plant and make it operational again.
“Backed by the strong technical expertise of our Norwegian partner SN Power, our joint venture infused another $280 million, in addition to the $325 million purchase price, to embark on the rehabilitation and refurbishment of the Ambuklao and Binga plants not only to restore the capacity of these historic facilities but to also increase them by 105 MW and 120 MW, respectively,” Rubio said.
SN Power is majority-owned by Statkraft of Norway, the leading renewable energy provider in Europe.
“The rehabilitation of Ambuklao plant alone sets another milestone in the Philippine hydropower industry as the first of its kind in terms of scope and magnitude,” Rubio further said.
SNAP-Benguet has successfully put online the first 35 MW unit of the Ambuklao plant on June 1 this year, while the remaining two units are now running.
“The inauguration of the Ambuklao plant’s new 105 MW capacity will make available clean and renewable energy to millions of Filipinos in the Luzon Grid. The Ambuklao plant is now also registered under the Clean Development Mechanism (CDM) and expected to generate 180,000 carbon credits (CERs),” Rubio said.
“This is the realization of SNAP-Benguet and the government’s strong and long-term commitment to renewable power for all,” he added.
With the theme “The Power to Renew,” the inauguration of the Ambuklao plant Tuesday will highlight SNAP-Benguet’s passion for innovation and excellence, renew its pledge for the development of surrounding communities, and honor the rich indigenous culture of the residents of Benguet.
“The inauguration of the Ambuklao plant will be a testament to the heights of what public and private partnerships can achieve in making available clean and renewable energy to all Filipinos,” Rubio said.
Philippine Daily Inquirer
1:08 am | Wednesday, October 26th, 2011
SN Aboitiz Power (SNAP) Benguet Inc. will fully commission on Tuesday the 105-megawatt Ambuklao hydroelectric power plant after the company rehabilitated the facility that was last seen running in 1999.
“When we took over the Ambuklao Plant in 2008, it had been shut down and under preservation by National Power Corp. (Napocor) for close to nine years due to technical problems sustained after a major earthquake in 1990,” said SNAP president and CEO Emmanuel V. Rubio. “Several attempts were made by Napocor to restore the capacity of the plant prior to our acquisition, to no avail.”
Rubio said SNAP-Benguet gave its commitment to the government that it would revive the Ambuklao plant and make it operational again.
“Backed by the strong technical expertise of our Norwegian partner SN Power, our joint venture infused another $280 million, in addition to the $325 million purchase price, to embark on the rehabilitation and refurbishment of the Ambuklao and Binga plants not only to restore the capacity of these historic facilities but to also increase them by 105 MW and 120 MW, respectively,” Rubio said.
SN Power is majority-owned by Statkraft of Norway, the leading renewable energy provider in Europe.
“The rehabilitation of Ambuklao plant alone sets another milestone in the Philippine hydropower industry as the first of its kind in terms of scope and magnitude,” Rubio further said.
SNAP-Benguet has successfully put online the first 35 MW unit of the Ambuklao plant on June 1 this year, while the remaining two units are now running.
“The inauguration of the Ambuklao plant’s new 105 MW capacity will make available clean and renewable energy to millions of Filipinos in the Luzon Grid. The Ambuklao plant is now also registered under the Clean Development Mechanism (CDM) and expected to generate 180,000 carbon credits (CERs),” Rubio said.
“This is the realization of SNAP-Benguet and the government’s strong and long-term commitment to renewable power for all,” he added.
With the theme “The Power to Renew,” the inauguration of the Ambuklao plant Tuesday will highlight SNAP-Benguet’s passion for innovation and excellence, renew its pledge for the development of surrounding communities, and honor the rich indigenous culture of the residents of Benguet.
“The inauguration of the Ambuklao plant will be a testament to the heights of what public and private partnerships can achieve in making available clean and renewable energy to all Filipinos,” Rubio said.
Aboitiz-led consortium to restart Ambuklao
Manila Times.net
Published : Wednesday, October 26, 2011 00:00 Written by : EUAN PAULO C. AÑONUEVO
A CONSORTIUM led by the Aboitiz group will commission the once shuttered Ambuklao hydroelectric plant in Benguet today.
The commissioning of the 105-megawatt plant follows the rehabilitation and upgrading project implemented by SN Aboitiz Power, which acquired the facility from the government in 2008.
“The inauguration of the Ambuklao plant’s new 105-megawatt capacity will make available clean and renewable energy to millions of Filipinos in the Luzon grid,” SNAP said.
SNAP is the consortium of Aboitiz Power Corp. and SN Power of Norway.
The Ambuklao facility, which originally had a 75-megawatt capacity, had not been running since 1999 because of heavy siltation along the rivers that power its turbines.
The facility is considered among the first large hydroelectric power plants of state-owned National Power Corp. when they were constructed in the 1950’s.
“Several attempts were made by Napocor to restore the capacity of the plant prior to our acquisition, to no avail,” SNAP said.
After acquiring the plant, SNAP spent more than $290 million to repair and upgrade the facility.
The Aboitiz group said the rehabilitation of Ambuklao plant alone sets another milestone in the Philippine hydropower industry as the first of its kind in terms of scope and magnitude.
The Ambuklao plant is now also registered under the Clean Development Mechanism and expected to generate 180,000 carbon credits.
Published : Wednesday, October 26, 2011 00:00 Written by : EUAN PAULO C. AÑONUEVO
A CONSORTIUM led by the Aboitiz group will commission the once shuttered Ambuklao hydroelectric plant in Benguet today.
The commissioning of the 105-megawatt plant follows the rehabilitation and upgrading project implemented by SN Aboitiz Power, which acquired the facility from the government in 2008.
“The inauguration of the Ambuklao plant’s new 105-megawatt capacity will make available clean and renewable energy to millions of Filipinos in the Luzon grid,” SNAP said.
SNAP is the consortium of Aboitiz Power Corp. and SN Power of Norway.
The Ambuklao facility, which originally had a 75-megawatt capacity, had not been running since 1999 because of heavy siltation along the rivers that power its turbines.
The facility is considered among the first large hydroelectric power plants of state-owned National Power Corp. when they were constructed in the 1950’s.
“Several attempts were made by Napocor to restore the capacity of the plant prior to our acquisition, to no avail,” SNAP said.
After acquiring the plant, SNAP spent more than $290 million to repair and upgrade the facility.
The Aboitiz group said the rehabilitation of Ambuklao plant alone sets another milestone in the Philippine hydropower industry as the first of its kind in terms of scope and magnitude.
The Ambuklao plant is now also registered under the Clean Development Mechanism and expected to generate 180,000 carbon credits.
MVP group shifts Meralco shares
Manila Times.net
Published : Wednesday, October 26, 2011 00:00
Written by : KRISTA ANGELA M. MONTEALEGRE REPORTER
THE group of Manuel Pangilinan on Tuesday executed a special block sale of Manila Electric Co. shares as part of the consolidation of holdings in the country’s largest power distribution utility.
In a memorandum, the Philippine Stock Exchange said it approved the execution of the P15.14-billion block sale covering the transfer of PLDT Communications and Energy Ventures Inc.’s 68.8 million shares comprising about 6.1 percent of Meralco to Beacon Electric Asset Holdings Inc.
The shares were priced at P220 each.
“[The group was] just moving [the shares] from PCEV to Beacon Electric which is our 50-50 joint venture holding company with PCEV,” David Nicol, Metro Pacific Investments Corp. chief finance officer, said in a text message.
Last week, MPIC announced the Pangilinan group will consolidate its Meralco stake under Beacon Electric after which PCEV will subscribe to 1.199 billion preferred shares of Beacon Electric for an issue value of P15.14 billion.
After the block sale, Beacon Electric raised its interest in Meralco from 39.20 percent to 45.35 percent, making the former the single largest shareholder of the utility.
PCEV would no longer directly hold any shares in Meralco.
A PLDT unit, PCEV is a holding company whose primary asset is its holdings in Meralco, held both directly and indirectly through Beacon Electric.
PCEV acquired its original 20 percent investment in Meralco in July 2009 and previously transferred 154.2 million shares to Beacon Electric in March 2010.
Food and beverage giant San Miguel Corp. owns at least 27 percent of Meralco. Meralco, whose service area makes up nearly half of the country’s economic output, accounted for 31 percent, or P1.09 billion of MPIC’s consolidated income of P2.658 billion in the first six months of this year.
MPIC shares rose to P3.20 on Tuesday from P3.05 on Monday, while Meralco shares jumped to P245 each from P241 apiece. PCEV shares were last traded on Monday at P5.55 apiece.
Published : Wednesday, October 26, 2011 00:00
Written by : KRISTA ANGELA M. MONTEALEGRE REPORTER
THE group of Manuel Pangilinan on Tuesday executed a special block sale of Manila Electric Co. shares as part of the consolidation of holdings in the country’s largest power distribution utility.
In a memorandum, the Philippine Stock Exchange said it approved the execution of the P15.14-billion block sale covering the transfer of PLDT Communications and Energy Ventures Inc.’s 68.8 million shares comprising about 6.1 percent of Meralco to Beacon Electric Asset Holdings Inc.
The shares were priced at P220 each.
“[The group was] just moving [the shares] from PCEV to Beacon Electric which is our 50-50 joint venture holding company with PCEV,” David Nicol, Metro Pacific Investments Corp. chief finance officer, said in a text message.
Last week, MPIC announced the Pangilinan group will consolidate its Meralco stake under Beacon Electric after which PCEV will subscribe to 1.199 billion preferred shares of Beacon Electric for an issue value of P15.14 billion.
After the block sale, Beacon Electric raised its interest in Meralco from 39.20 percent to 45.35 percent, making the former the single largest shareholder of the utility.
PCEV would no longer directly hold any shares in Meralco.
A PLDT unit, PCEV is a holding company whose primary asset is its holdings in Meralco, held both directly and indirectly through Beacon Electric.
PCEV acquired its original 20 percent investment in Meralco in July 2009 and previously transferred 154.2 million shares to Beacon Electric in March 2010.
Food and beverage giant San Miguel Corp. owns at least 27 percent of Meralco. Meralco, whose service area makes up nearly half of the country’s economic output, accounted for 31 percent, or P1.09 billion of MPIC’s consolidated income of P2.658 billion in the first six months of this year.
MPIC shares rose to P3.20 on Tuesday from P3.05 on Monday, while Meralco shares jumped to P245 each from P241 apiece. PCEV shares were last traded on Monday at P5.55 apiece.
ERC Resets Open Access Implementation
Manila Bulletin
By MYRNA M. VELASCO
October 26, 2011, 12:05am
MANILA, Philippines — The implementation of open access originally targeted by year-end will skid to a later timeframe, the Energy Regulatory Commission (ERC) has stated in its advisory to the media.
“The ERC resolved yesterday to defer the implementation of open access and retail competition, which was earlier scheduled to commence on December 26, 2011,” ERC executive director Francis Saturnino Juan has announced.
The Commission added that “a new timeline will be set after the ERC receives the recommendations of the steering committee created by the DoE (Department of Energy).”
Prior to the decision on the postponement of open access implementation, the ERC indicated that it already certified around 500 entities as prospective participants to the open access regime.
The role of the ERC, being the interim central registration authority (CRA), however is being questioned with some quarters inferring that the regulator must not be involved in such function for the sake of maintaining its independence.
In the DoE-led discussion on the Transitory Rules for Open Access issued by the ERC, it has been initially agreed that “the identification/designation of the CRA be referred to the JCPC (Joint Congressional Power Commission).”
Open access and retail competition is the era in the deregulated power industry which shall finally give consumers true-to-form choice when it comes to their preferred electricity suppliers. The initial threshold for participants will be for those with 1.0 megawatt of peak demand within a cycle set by the regulator.
Nevertheless, the energy department’s steering committee as well as the other players in the industry deemed that the sector may still not be ready for open access – given the lacking infrastructure yet for customer-switching (business-to-business or B2B system) as well as the absence of a designated agent on billings and settlements.
They have proposed that the deferment of open access shall be timed appropriately “based on the simulation of the time/period required to put in place the rules, regulations, infrastructure and such other necessary compliances prior to commencement.” The delay is seen stretched by another one to two years.
The steering committee, in particular, indicated that it will “formulate a clear Plan of Action for the designation of the CRA to include consistency with other issued ERC resolutions;” like the rules on customer switching.
For the B2B information technology-based infrastructure, it has been proposed that this be undertaken by a third party provider. The budgeting process and actual setting up of the system may still take some time though.
By MYRNA M. VELASCO
October 26, 2011, 12:05am
MANILA, Philippines — The implementation of open access originally targeted by year-end will skid to a later timeframe, the Energy Regulatory Commission (ERC) has stated in its advisory to the media.
“The ERC resolved yesterday to defer the implementation of open access and retail competition, which was earlier scheduled to commence on December 26, 2011,” ERC executive director Francis Saturnino Juan has announced.
The Commission added that “a new timeline will be set after the ERC receives the recommendations of the steering committee created by the DoE (Department of Energy).”
Prior to the decision on the postponement of open access implementation, the ERC indicated that it already certified around 500 entities as prospective participants to the open access regime.
The role of the ERC, being the interim central registration authority (CRA), however is being questioned with some quarters inferring that the regulator must not be involved in such function for the sake of maintaining its independence.
In the DoE-led discussion on the Transitory Rules for Open Access issued by the ERC, it has been initially agreed that “the identification/designation of the CRA be referred to the JCPC (Joint Congressional Power Commission).”
Open access and retail competition is the era in the deregulated power industry which shall finally give consumers true-to-form choice when it comes to their preferred electricity suppliers. The initial threshold for participants will be for those with 1.0 megawatt of peak demand within a cycle set by the regulator.
Nevertheless, the energy department’s steering committee as well as the other players in the industry deemed that the sector may still not be ready for open access – given the lacking infrastructure yet for customer-switching (business-to-business or B2B system) as well as the absence of a designated agent on billings and settlements.
They have proposed that the deferment of open access shall be timed appropriately “based on the simulation of the time/period required to put in place the rules, regulations, infrastructure and such other necessary compliances prior to commencement.” The delay is seen stretched by another one to two years.
The steering committee, in particular, indicated that it will “formulate a clear Plan of Action for the designation of the CRA to include consistency with other issued ERC resolutions;” like the rules on customer switching.
For the B2B information technology-based infrastructure, it has been proposed that this be undertaken by a third party provider. The budgeting process and actual setting up of the system may still take some time though.
DOE pushes back bidding round for coal contracts
Manila Times.net
Published : Wednesday, October 26, 2011 00:00 Written by : EUAN PAULO C. AÑONUEVO REPORTER
THE Department of Energy has pushed back the public bidding round for coal exploration and development contracts to December.
Undersecretary Jay Layug said the department decided to move the Philippine Energy Contracting Round 5 for coal from this month, as it has yet to finalize the areas that will be auctioned off.
“We are still awaiting confirmation on some areas to be offered,” he said.
The DOE earlier said it would bid out 10 prospective coal projects mostly in Mindanao but has so far processed only five of these areas.
The projects will be offered under the PECR, a public bidding round for energy projects started in 2005 to spur the development of indigenous power sources.
Layug earlier said the DOE is still awaiting the go signal from the Department of Environment and Natural Resources on additional coal areas that will be bid out by the DOE to ensure that none of these sites overlap.
Energy Secretary Jose Rene Almendras earlier said they would want to pursue more coal projects to help address the country’s baseload or 24-hour power requirements.
Coal is considered one of the cheapest fuels for electricity production and takes up roughly over a quarter of the country’s power generation mix.
Published : Wednesday, October 26, 2011 00:00 Written by : EUAN PAULO C. AÑONUEVO REPORTER
THE Department of Energy has pushed back the public bidding round for coal exploration and development contracts to December.
Undersecretary Jay Layug said the department decided to move the Philippine Energy Contracting Round 5 for coal from this month, as it has yet to finalize the areas that will be auctioned off.
“We are still awaiting confirmation on some areas to be offered,” he said.
The DOE earlier said it would bid out 10 prospective coal projects mostly in Mindanao but has so far processed only five of these areas.
The projects will be offered under the PECR, a public bidding round for energy projects started in 2005 to spur the development of indigenous power sources.
Layug earlier said the DOE is still awaiting the go signal from the Department of Environment and Natural Resources on additional coal areas that will be bid out by the DOE to ensure that none of these sites overlap.
Energy Secretary Jose Rene Almendras earlier said they would want to pursue more coal projects to help address the country’s baseload or 24-hour power requirements.
Coal is considered one of the cheapest fuels for electricity production and takes up roughly over a quarter of the country’s power generation mix.
Aboitiz Group opens Ambuklao dam
By Donnabelle L. Gatdula (The Philippine Star) Updated October 26, 2011 12:00 AM
BENGUET, Mt. Province, Philippines – The Aboitiz Group will commission today the 75-megawatt Ambuklao hydroelectric power plant to provide more power to the Luzon grid.
The rehabilitation of Ambuklao, which started in 2008, was undertaken by SNAP-Benguet Inc., a joint venture between SN Power of Norway and Aboitiz Power Corp.
“We are very pleased to report that SNAP-Benguet has successfully put online the first 35 MW unit of the Ambuklao plant on June 1, 2011. The remaining two units are expected to go on full operation by the third quarter of 2011. The inauguration of the Ambuklao plant’s new 105 MW capacity will make available clean and renewable energy to millions of Filipinos in the Luzon Grid,” the company said.
In 2008, SNAP-Benguet acquired the 75-MW Ambuklao and 100-MW Binga hydroelectric power plants, located in the municipalities of Bokod and Itogon, respectively, in the province of Benguet after a public bidding held by the Power Sector Assets and Liabilities Management Corp. (PSALM).
These power facilities were considered among the first large hydroelectric power plants of the National Power Corp. (Napocor) when they were constructed in the 1950s.
When SNAP-Benguet took over the Ambuklao power facility in 2008, it had been shut down and under preservation by Napocor since 1999 due to technical problems sustained after a major earthquake in 1990.
“Several attempts were made by Napocor to restore the capacity of the plant prior to our acquisition, to no avail,” the company said.
SNAP-Benguet gave its commitment to the government to revive the Ambuklao plant and make it operational again.
Backed by the strong technical expertise of its Norwegian partner SN Power (majority owned by Statkraft of Norway, the leading renewable energy provider in Europe), SNAP-Benguet infused another $280 million, in addition to the $325 million purchase price, to embark on the rehabilitation and refurbishment of the Ambuklao and Binga plants not only to restore the capacity of these historic facilities but to also increase them by 105 MW and 120 MW, respectively.
The Aboitiz Group said the rehabilitation of Ambuklao plant alone sets another milestone in the Philippine hydropower industry as the first of its kind in terms of scope and magnitude.
The Ambuklao plant is now also registered under the Clean Development Mechanism (CDM) and expected to generate 180,000 carbon credits (CERs).
“This is the realization of SNAP-Benguet and the government’s strong and long-term commitment to renewable power for all,” it added.
BENGUET, Mt. Province, Philippines – The Aboitiz Group will commission today the 75-megawatt Ambuklao hydroelectric power plant to provide more power to the Luzon grid.
The rehabilitation of Ambuklao, which started in 2008, was undertaken by SNAP-Benguet Inc., a joint venture between SN Power of Norway and Aboitiz Power Corp.
“We are very pleased to report that SNAP-Benguet has successfully put online the first 35 MW unit of the Ambuklao plant on June 1, 2011. The remaining two units are expected to go on full operation by the third quarter of 2011. The inauguration of the Ambuklao plant’s new 105 MW capacity will make available clean and renewable energy to millions of Filipinos in the Luzon Grid,” the company said.
In 2008, SNAP-Benguet acquired the 75-MW Ambuklao and 100-MW Binga hydroelectric power plants, located in the municipalities of Bokod and Itogon, respectively, in the province of Benguet after a public bidding held by the Power Sector Assets and Liabilities Management Corp. (PSALM).
These power facilities were considered among the first large hydroelectric power plants of the National Power Corp. (Napocor) when they were constructed in the 1950s.
When SNAP-Benguet took over the Ambuklao power facility in 2008, it had been shut down and under preservation by Napocor since 1999 due to technical problems sustained after a major earthquake in 1990.
“Several attempts were made by Napocor to restore the capacity of the plant prior to our acquisition, to no avail,” the company said.
SNAP-Benguet gave its commitment to the government to revive the Ambuklao plant and make it operational again.
Backed by the strong technical expertise of its Norwegian partner SN Power (majority owned by Statkraft of Norway, the leading renewable energy provider in Europe), SNAP-Benguet infused another $280 million, in addition to the $325 million purchase price, to embark on the rehabilitation and refurbishment of the Ambuklao and Binga plants not only to restore the capacity of these historic facilities but to also increase them by 105 MW and 120 MW, respectively.
The Aboitiz Group said the rehabilitation of Ambuklao plant alone sets another milestone in the Philippine hydropower industry as the first of its kind in terms of scope and magnitude.
The Ambuklao plant is now also registered under the Clean Development Mechanism (CDM) and expected to generate 180,000 carbon credits (CERs).
“This is the realization of SNAP-Benguet and the government’s strong and long-term commitment to renewable power for all,” it added.
ERC agrees to defer open access
By Donnabelle L. Gatdula (The Philippine Star) Updated October 26, 2011 12:00 AM
MANILA, Philippimes - The Energy Regulatory Commission (ERC) has acceded to the request of the power industry stakeholders to defer the implementation of open access and retail competition.
ERC executive director Francis Saturnino Juan said the commission found the request of the stakeholders for deferment valid as the industry would need additional time to put up necessary infrastructure for the schemes.
Open access and retail competition will allow large power users, with an average monthly peak demand of one megawatt, the right to choose their own electricity suppliers. The entry of more competition in the retail electricity sector is expected to bring down power costs to large users.
“ERC resolved to defer implementation of open access and retail competition which was earlier scheduled to commence on Dec. 26, 2011. A new timeline will be set after the ERC receives the recommendations of the steering committee created by the Energy Department,” Juan said.
“The infrastructure has not been put in place, before we are able to do that we have issues to be resolved, between now and Dec. 26, we’ll not able to finish these, so the commission decided (to defer) so that stakeholders are guided accordingly,” he said.
He said the commission will come out a definite timeline as to when open access will commence.
“Maybe next year but we will await for the DOE steering committee to set the timeline,” he said.
Earlier, Manila Electric Co., Philippine Rural Electric Cooperatives Association, Inc. and the Private Electric Power Operators Association, Inc. in a joint letter to the ERC, have asked to defer the implementation of open access until certain concerns are resolved.
The power industry stakeholders said preparation for the system and infrastructure for open access and retail competition will take beyond Dec. 26.
“Our concern stems from the fact that the remaining time between now and (Dec. 26) will be grossly inadequate for the completion of both the policy framework as well as the establishment of the necessary systems,” the power groups said.
They said there is a need to step up the accounting, billing and settlement of transactions for open access, which could take 12 to 15 months to put up.
On the other hand, Energy Secretary Jose Rene Almendras said he is amendable to implement open access and retail competition next year provided that there is adequate power supply in the grid.
MANILA, Philippimes - The Energy Regulatory Commission (ERC) has acceded to the request of the power industry stakeholders to defer the implementation of open access and retail competition.
ERC executive director Francis Saturnino Juan said the commission found the request of the stakeholders for deferment valid as the industry would need additional time to put up necessary infrastructure for the schemes.
Open access and retail competition will allow large power users, with an average monthly peak demand of one megawatt, the right to choose their own electricity suppliers. The entry of more competition in the retail electricity sector is expected to bring down power costs to large users.
“ERC resolved to defer implementation of open access and retail competition which was earlier scheduled to commence on Dec. 26, 2011. A new timeline will be set after the ERC receives the recommendations of the steering committee created by the Energy Department,” Juan said.
“The infrastructure has not been put in place, before we are able to do that we have issues to be resolved, between now and Dec. 26, we’ll not able to finish these, so the commission decided (to defer) so that stakeholders are guided accordingly,” he said.
He said the commission will come out a definite timeline as to when open access will commence.
“Maybe next year but we will await for the DOE steering committee to set the timeline,” he said.
Earlier, Manila Electric Co., Philippine Rural Electric Cooperatives Association, Inc. and the Private Electric Power Operators Association, Inc. in a joint letter to the ERC, have asked to defer the implementation of open access until certain concerns are resolved.
The power industry stakeholders said preparation for the system and infrastructure for open access and retail competition will take beyond Dec. 26.
“Our concern stems from the fact that the remaining time between now and (Dec. 26) will be grossly inadequate for the completion of both the policy framework as well as the establishment of the necessary systems,” the power groups said.
They said there is a need to step up the accounting, billing and settlement of transactions for open access, which could take 12 to 15 months to put up.
On the other hand, Energy Secretary Jose Rene Almendras said he is amendable to implement open access and retail competition next year provided that there is adequate power supply in the grid.
DOE reschedules contracting round
By Donnabelle L. Gatdula (The Philippine Star) Updated October 26, 2011 12:00 AM
MANILA, Philippines - The Department of Energy (DOE) has rescheduled the Philippine Energy Contracting Round (PECR) 5 for coal areas to December this year, a ranking DOE official said.
Energy Undersecretary Jay Layug said the decision to hold the coal contracting round in the latter part of this year instead of this month would provide the DOE more time to identify prospective areas to be covered under the PECR 5.
“For coal PECR, we have moved it to December as we are still awaiting confirmation on some areas to be offered,” Layug said.
The DOE is eyeing to bid out at least five areas, mostly in Mindanao, under this contracting round.
“So far, we have only five areas but it’s not yet final. We are looking at additional five more (but) we need a final go-signal from the Environment Department so there will be no overlap,” the DOE official said.
Earlier, the DOE said among the possible coal exploration and development areas are at Cebu, Surigao del Sur and Zamboanga del Norte.
Energy Secretary Jose Rene Almendras earlier said they would want to pursue more coal projects to help address the country’s baseload or 24-hour power requirement.
In 2009, the DOE awarded more than 10 coal contracts with total investments of around P580 million.
Last June the DOE launched PECR 4, which is estimated to generate investments of $7.5 billion from the 15 areas offered for oil and gas exploration.
The government is expecting to award contracts for PECR 4 by the middle of 2012.
In 2003, the DOE launched PECR-1 wherein exploration blocks near oil producing areas in Northwest Palawan and in vast frontier basins in Southwest and East Palawan, Sulu Sea and Reed Bank were offered to investors.
Continuing the gains of PECR-1, in August 2005, the DOE conducted PECR 2005 wherein it offered investors opportunities for exploration and development not only of petroleum resources but also exploration and development of coal and geothermal resources.
Since 2005, the DOE has engaged in public contracting rounds in an aim to make the bidding of energy contracts more transparent.
When the PECR was introduced, no more service contracts were awarded without passing through this process.
So far, 13 petroleum service contracts, 19 coal operating contracts and a handful of geothermal exploration development and exploration contracts worth well over P1 billion in investments were awarded under the PECR.
MANILA, Philippines - The Department of Energy (DOE) has rescheduled the Philippine Energy Contracting Round (PECR) 5 for coal areas to December this year, a ranking DOE official said.
Energy Undersecretary Jay Layug said the decision to hold the coal contracting round in the latter part of this year instead of this month would provide the DOE more time to identify prospective areas to be covered under the PECR 5.
“For coal PECR, we have moved it to December as we are still awaiting confirmation on some areas to be offered,” Layug said.
The DOE is eyeing to bid out at least five areas, mostly in Mindanao, under this contracting round.
“So far, we have only five areas but it’s not yet final. We are looking at additional five more (but) we need a final go-signal from the Environment Department so there will be no overlap,” the DOE official said.
Earlier, the DOE said among the possible coal exploration and development areas are at Cebu, Surigao del Sur and Zamboanga del Norte.
Energy Secretary Jose Rene Almendras earlier said they would want to pursue more coal projects to help address the country’s baseload or 24-hour power requirement.
In 2009, the DOE awarded more than 10 coal contracts with total investments of around P580 million.
Last June the DOE launched PECR 4, which is estimated to generate investments of $7.5 billion from the 15 areas offered for oil and gas exploration.
The government is expecting to award contracts for PECR 4 by the middle of 2012.
In 2003, the DOE launched PECR-1 wherein exploration blocks near oil producing areas in Northwest Palawan and in vast frontier basins in Southwest and East Palawan, Sulu Sea and Reed Bank were offered to investors.
Continuing the gains of PECR-1, in August 2005, the DOE conducted PECR 2005 wherein it offered investors opportunities for exploration and development not only of petroleum resources but also exploration and development of coal and geothermal resources.
Since 2005, the DOE has engaged in public contracting rounds in an aim to make the bidding of energy contracts more transparent.
When the PECR was introduced, no more service contracts were awarded without passing through this process.
So far, 13 petroleum service contracts, 19 coal operating contracts and a handful of geothermal exploration development and exploration contracts worth well over P1 billion in investments were awarded under the PECR.
Tuesday, October 25, 2011
Auctions for coal deals set for December
Business World Online
Posted on October 25, 2011 10:29:31 PM
SALE of coal exploration contracts, initially targeted for this month, have been set for December as the Energy department is still finalizing the list of areas, an official told reporters on Tuesday.
“For the coal bidding, we have moved it to December as we are still awaiting confirmation on some areas to be offered,” Energy Undersecretary Jose M. Layug, Jr. said.
He said there were five areas on the initial list, adding that the department wanted to add more sites.
“So far, we have only five areas but it’s [sic] not yet final. We are looking at additional five more, but we need a final go signal from the Department of Environment and Natural Resources so there will be no overlap,” said Mr. Layug.
The department had earlier said there are several potential sites in Mindanao that may be included.
Investors have raised concern over the open pit mining ban in South Cotabato and, lately, the communist rebel attack on a major nickel mine site in Surigao del Norte earlier this month.
Data from the Energy department show there were 30 active coal operating contracts as of September last year.
Official data also show that the power sector consumes about 75.2% of the country’s coal, with the balance going to industrial and cement manufacturing.
In addition to producing its own coal, the Philippines also imports coal to be used in some power plants.
The coal contracting round forms part of the 4th Philippine Energy Contracting round that was launched last June with 15 areas for oil and gas exploration, 10 of them in Palawan. The government had said it expected around $7.5 billion in investments for oil and gas contracts alone.
In the last coal contracting round in 2009, the Energy department awarded more than 10 coal contracts with investments of around P580 million.
The department earlier postponed the contracting round due to questions raised by the Commission on Audit (CoA) on the taxation of government awarded service contracts.
CoA said in its 2009 audit on the Energy department that the government was shortchanged by about P53.1 billion in corporate income tax from the Malampaya natural gas project for the years 2003-2009, since the tax was actually deducted from the 60% government share in net sales of this venture as a form of incentive for investors. -- ENJD
Posted on October 25, 2011 10:29:31 PM
SALE of coal exploration contracts, initially targeted for this month, have been set for December as the Energy department is still finalizing the list of areas, an official told reporters on Tuesday.
“For the coal bidding, we have moved it to December as we are still awaiting confirmation on some areas to be offered,” Energy Undersecretary Jose M. Layug, Jr. said.
He said there were five areas on the initial list, adding that the department wanted to add more sites.
“So far, we have only five areas but it’s [sic] not yet final. We are looking at additional five more, but we need a final go signal from the Department of Environment and Natural Resources so there will be no overlap,” said Mr. Layug.
The department had earlier said there are several potential sites in Mindanao that may be included.
Investors have raised concern over the open pit mining ban in South Cotabato and, lately, the communist rebel attack on a major nickel mine site in Surigao del Norte earlier this month.
Data from the Energy department show there were 30 active coal operating contracts as of September last year.
Official data also show that the power sector consumes about 75.2% of the country’s coal, with the balance going to industrial and cement manufacturing.
In addition to producing its own coal, the Philippines also imports coal to be used in some power plants.
The coal contracting round forms part of the 4th Philippine Energy Contracting round that was launched last June with 15 areas for oil and gas exploration, 10 of them in Palawan. The government had said it expected around $7.5 billion in investments for oil and gas contracts alone.
In the last coal contracting round in 2009, the Energy department awarded more than 10 coal contracts with investments of around P580 million.
The department earlier postponed the contracting round due to questions raised by the Commission on Audit (CoA) on the taxation of government awarded service contracts.
CoA said in its 2009 audit on the Energy department that the government was shortchanged by about P53.1 billion in corporate income tax from the Malampaya natural gas project for the years 2003-2009, since the tax was actually deducted from the 60% government share in net sales of this venture as a form of incentive for investors. -- ENJD
Government defers retail competition in power sector
Business Mirror
TUESDAY, 25 OCTOBER 2011 21:11 PAUL ANTHONY A. ISLA / REPORTER
THE Energy Regulatory Commission (ERC) must deal with a few setbacks before it can implement open access and retail competition in the power sector.
Open access, which allows consumers to choose their own electricity supplier, is scheduled to begin on December 26.
But lawyer Francis Saturnino Juan, ERC executive director, told reporters in a text message on Tuesday that the agency set a new schedule after receiving the recommendations of a steering committee created by the Department of Energy (DOE).
He said the needed information technology infrastructure is not yet in place and there are other issues that must be addressed.
“In short, not all the preparatory activities earlier identified have been undertaken,” Juan said. “We will wait for the DOE steering committee’s report before we set the timeline. There are preparations that still need to be done.
Energy Secretary Jose Rene Almendras earlier said open access and retail competition should be implemented while the power supply is sufficient and stable.
He said timing was key in making sure open access and retail competition would not cause power rates to rise further.
“It can happen next year, perhaps after summer. We have to wait for the technical working group’s recommendation,” he said.
Almendras said he does not want to make a recommendation without having a basis.
Almendras noted there were people claiming that a full-blown system is not necessary.
Open access will introduce competition in the retail-supply segment of the electric-power industry by allowing electricity end-users with an average monthly peak demand of one megawatt to choose their electricity-service supplier.
According to the Electric Power Industry Reform Act, the introduction of open access will be gradual, starting first with end-users with a 12-month average demand of one megawatt. After two years, the coverage shall be expanded to customers with a 750-kilowatt individual or aggregated demand.
TUESDAY, 25 OCTOBER 2011 21:11 PAUL ANTHONY A. ISLA / REPORTER
THE Energy Regulatory Commission (ERC) must deal with a few setbacks before it can implement open access and retail competition in the power sector.
Open access, which allows consumers to choose their own electricity supplier, is scheduled to begin on December 26.
But lawyer Francis Saturnino Juan, ERC executive director, told reporters in a text message on Tuesday that the agency set a new schedule after receiving the recommendations of a steering committee created by the Department of Energy (DOE).
He said the needed information technology infrastructure is not yet in place and there are other issues that must be addressed.
“In short, not all the preparatory activities earlier identified have been undertaken,” Juan said. “We will wait for the DOE steering committee’s report before we set the timeline. There are preparations that still need to be done.
Energy Secretary Jose Rene Almendras earlier said open access and retail competition should be implemented while the power supply is sufficient and stable.
He said timing was key in making sure open access and retail competition would not cause power rates to rise further.
“It can happen next year, perhaps after summer. We have to wait for the technical working group’s recommendation,” he said.
Almendras said he does not want to make a recommendation without having a basis.
Almendras noted there were people claiming that a full-blown system is not necessary.
Open access will introduce competition in the retail-supply segment of the electric-power industry by allowing electricity end-users with an average monthly peak demand of one megawatt to choose their electricity-service supplier.
According to the Electric Power Industry Reform Act, the introduction of open access will be gradual, starting first with end-users with a 12-month average demand of one megawatt. After two years, the coverage shall be expanded to customers with a 750-kilowatt individual or aggregated demand.
AboitizPower exec: Solar energy alone can’t prevent Mindanao power shortage
Business Mirror
TUESDAY, 25 OCTOBER 2011 18:57 BUTCH D. ENERIO / CORRESPONDENT
CAGAYAN DE ORO CITY - A top executive of Aboitiz Power (AP) said solar power alone is not the answer to the power shortage in Mindanao because of its very low efficiency rate and its very high cost.
Manuel M. Orig, First Vice President for Mindanao Affairs of AP, also defended Energy Secretary Rene Almendras from calls for his replacement by Cagayan Electric Power and Light Co. (Cepalco) official Dave Tauli, who accused the government official of being biased against solar energy.
Tauli, in his letters sent to media, accused Almendras of blocking solar power in Mindanao.
Tauli also said the opposition to renewable energy projects stems from “owners and proponents of oil- and coal-fueled power plants…” and that “Renewable Energy (RE)-based power plants will make unnecessary the coal-power plant proposed for Davao City.”
Orig said that what Mindanao needs at the moment is base loadpower plants which can run 24/7 and are not climate dependent, just like solar. Solar power, he said, will only run 16 percent of the time, when there is sunlight.
AP is proposing to build a 300-megawatt (MW) circulating fluidized-bed power plant in southern Davao and five run-of-river hydro-power plants in Davao City, Davao del Sur and Bukidnon.
“The 300-MW baseload plant we propose cannot in any way be made unnecessary by the RE-based power plants most favored by Mr. Tauli---solar PV [photovoltaic]. A baseload plant by definition provides a reliable foundation of power generation for a power grid. It should be able to run 24 hours a day, 365 days a year on reasonably priced fuel,” Orig said.
Orig also underscored solar as not reliable as fossil-based power plants; it is also very costly.
“One hundred megawatts (MW) of solar PV will cost the country around P2.5 billion a year even if it will only provide less than 2 percent of Mindanao’s annual power generation,” Orig said.
To recover the cost of the investors of solar power, Filipinos power consumers nationwide will be made to pay P2.1 billion in subsidy for 20 years.
“P2.1 billion can build us 2,625 classrooms in 20 years; you do the math,” Orig said.
Other power producers will have to sell their power in the free market without subsidy, making the playing field uneven, he said.
TUESDAY, 25 OCTOBER 2011 18:57 BUTCH D. ENERIO / CORRESPONDENT
CAGAYAN DE ORO CITY - A top executive of Aboitiz Power (AP) said solar power alone is not the answer to the power shortage in Mindanao because of its very low efficiency rate and its very high cost.
Manuel M. Orig, First Vice President for Mindanao Affairs of AP, also defended Energy Secretary Rene Almendras from calls for his replacement by Cagayan Electric Power and Light Co. (Cepalco) official Dave Tauli, who accused the government official of being biased against solar energy.
Tauli, in his letters sent to media, accused Almendras of blocking solar power in Mindanao.
Tauli also said the opposition to renewable energy projects stems from “owners and proponents of oil- and coal-fueled power plants…” and that “Renewable Energy (RE)-based power plants will make unnecessary the coal-power plant proposed for Davao City.”
Orig said that what Mindanao needs at the moment is base loadpower plants which can run 24/7 and are not climate dependent, just like solar. Solar power, he said, will only run 16 percent of the time, when there is sunlight.
AP is proposing to build a 300-megawatt (MW) circulating fluidized-bed power plant in southern Davao and five run-of-river hydro-power plants in Davao City, Davao del Sur and Bukidnon.
“The 300-MW baseload plant we propose cannot in any way be made unnecessary by the RE-based power plants most favored by Mr. Tauli---solar PV [photovoltaic]. A baseload plant by definition provides a reliable foundation of power generation for a power grid. It should be able to run 24 hours a day, 365 days a year on reasonably priced fuel,” Orig said.
Orig also underscored solar as not reliable as fossil-based power plants; it is also very costly.
“One hundred megawatts (MW) of solar PV will cost the country around P2.5 billion a year even if it will only provide less than 2 percent of Mindanao’s annual power generation,” Orig said.
To recover the cost of the investors of solar power, Filipinos power consumers nationwide will be made to pay P2.1 billion in subsidy for 20 years.
“P2.1 billion can build us 2,625 classrooms in 20 years; you do the math,” Orig said.
Other power producers will have to sell their power in the free market without subsidy, making the playing field uneven, he said.
PLDT unit completes transfer of Meralco shares to Beacon
Business Mirror
TUESDAY, 25 OCTOBER 2011 18:23 MIGUEL R. CAMUS / REPORTER
PLDT Communications and Energy Ventures Inc. (PCEV) has completed the transfer of its remaining 6.1-percent stake in Manila Electric Co. (Meralco) to unit Beacon Electric Asset Holdings Inc. via a share block sale on Tuesday.
A notice to the Philippine Stock Exchange showed that 68.8 million Meralco shares were crossed at exchange at the agreed price of P220 each.
Beacon Electric, a joint venture between PCEV and Metro Pacific Investments Corp., now owns a 45.35-percent stake in the utility. Both MPIC and PCEV are units of Manuel V. Pangilinan-led First Pacific Co. Ltd., a holding firm based in Hong Kong.
Pangilinan’s group started consolidating its Meralco stake under Beacon Electric early last year amid the electricity retailer’s aggressive plans to enter the power generation sector.
Beacon Electric is acquiring the PCEV stake for P15.136 billion. As payment, Beacon Electric will issue 1.199 billion preferred shares to PCEV valued at the acquisition cost. The preferred shares will pay a dividend rate of 7 percent per annum.
Meralco shares added 1.66 percent to P245 each on Tuesday.
Officials of MPIC have signaled in previous interviews that Beacon Electric can acquire additional shares in Meralco, although the company will not increase its stake beyond 50 percent to avoid having to make a costly tender offer to shareholders.
MPIC added 4.92 percent to P3.20 each, while PCEV shares did not move at P5.55 each on Tuesday’s close.
Other major shareholders of Meralco include San Miguel Corp., owner of at least 33.2 percent, and Lopez-led First Philippine Holdings Corp., which owns 6.6 percent.
TUESDAY, 25 OCTOBER 2011 18:23 MIGUEL R. CAMUS / REPORTER
PLDT Communications and Energy Ventures Inc. (PCEV) has completed the transfer of its remaining 6.1-percent stake in Manila Electric Co. (Meralco) to unit Beacon Electric Asset Holdings Inc. via a share block sale on Tuesday.
A notice to the Philippine Stock Exchange showed that 68.8 million Meralco shares were crossed at exchange at the agreed price of P220 each.
Beacon Electric, a joint venture between PCEV and Metro Pacific Investments Corp., now owns a 45.35-percent stake in the utility. Both MPIC and PCEV are units of Manuel V. Pangilinan-led First Pacific Co. Ltd., a holding firm based in Hong Kong.
Pangilinan’s group started consolidating its Meralco stake under Beacon Electric early last year amid the electricity retailer’s aggressive plans to enter the power generation sector.
Beacon Electric is acquiring the PCEV stake for P15.136 billion. As payment, Beacon Electric will issue 1.199 billion preferred shares to PCEV valued at the acquisition cost. The preferred shares will pay a dividend rate of 7 percent per annum.
Meralco shares added 1.66 percent to P245 each on Tuesday.
Officials of MPIC have signaled in previous interviews that Beacon Electric can acquire additional shares in Meralco, although the company will not increase its stake beyond 50 percent to avoid having to make a costly tender offer to shareholders.
MPIC added 4.92 percent to P3.20 each, while PCEV shares did not move at P5.55 each on Tuesday’s close.
Other major shareholders of Meralco include San Miguel Corp., owner of at least 33.2 percent, and Lopez-led First Philippine Holdings Corp., which owns 6.6 percent.
DOE defers bidding of coal contracts–Layug
Business Mirror
TUESDAY, 25 OCTOBER 2011 20:24 PAUL ANTHONY A. ISLA / REPORTER
THE Department of Energy (DOE) has deferred to December its plan to auction off coal exploration and development contracts to allot more time to thresh out issues in some of the areas to be bidded out, Energy Undersecretary Jose Layug Jr. said on Tuesday.
Layug said the department has finalized five coal projects that would be auctioned off to interested bidders and the agency could add five more to the final count but they are still awaiting confirmation on some areas to be offered.
“So far, we have only five areas but it’s not yet final. We are looking at bidding out five more, but we need a final approval from the Department of Environment and Natural Resources so there will be no overlap,” Layug said.
The 10 prospective coal projects are located mostly in Mindanao. Among the identified the areas for possible coal exploration and development are Cebu, Surigao del Sur and Zamboanga del Norte.
The proposed bidding round for coal projects will fall under the DOE’s Philippine Energy Contracting Round (Pecr), a public bidding round for energy projects started in 2005 to spur the development of indigenous power sources.
The DOE earlier said it plans to bid out the coal areas this month as part of the government’s thrust to ensure energy security. In 2009 the DOE awarded more than 10 coal contracts under the Pecr with potential investments of around P580 million. Coal is considered one of the cheapest fuel for electricity production and takes up roughly over a quarter of the country’s power generation mix.
Energy Secretary Jose Rene Almendras earlier said the government plans to launch the coal contracting round before the end of the year. “We’ll be pushing through with the coal bidding. We want to make it a good offering, we have a few areas that are clear from opposition. We’re gunning for an offering round for coal before the end of the year,” Almendras said.
The DOE head said he also wants to address opposition on coal exploration and development, which has stalled several coal projects. “I want to have more areas clear from opposition for the development to push through. We have COCs [coal-operating contracts] that have not moved and it’s not the fault of the developer, the developer could not proceed with development because of issues within their areas,” he said. Almendras is pushing for coal projects that would address the country’s baseload or 24-hour power requirement.
TUESDAY, 25 OCTOBER 2011 20:24 PAUL ANTHONY A. ISLA / REPORTER
THE Department of Energy (DOE) has deferred to December its plan to auction off coal exploration and development contracts to allot more time to thresh out issues in some of the areas to be bidded out, Energy Undersecretary Jose Layug Jr. said on Tuesday.
Layug said the department has finalized five coal projects that would be auctioned off to interested bidders and the agency could add five more to the final count but they are still awaiting confirmation on some areas to be offered.
“So far, we have only five areas but it’s not yet final. We are looking at bidding out five more, but we need a final approval from the Department of Environment and Natural Resources so there will be no overlap,” Layug said.
The 10 prospective coal projects are located mostly in Mindanao. Among the identified the areas for possible coal exploration and development are Cebu, Surigao del Sur and Zamboanga del Norte.
The proposed bidding round for coal projects will fall under the DOE’s Philippine Energy Contracting Round (Pecr), a public bidding round for energy projects started in 2005 to spur the development of indigenous power sources.
The DOE earlier said it plans to bid out the coal areas this month as part of the government’s thrust to ensure energy security. In 2009 the DOE awarded more than 10 coal contracts under the Pecr with potential investments of around P580 million. Coal is considered one of the cheapest fuel for electricity production and takes up roughly over a quarter of the country’s power generation mix.
Energy Secretary Jose Rene Almendras earlier said the government plans to launch the coal contracting round before the end of the year. “We’ll be pushing through with the coal bidding. We want to make it a good offering, we have a few areas that are clear from opposition. We’re gunning for an offering round for coal before the end of the year,” Almendras said.
The DOE head said he also wants to address opposition on coal exploration and development, which has stalled several coal projects. “I want to have more areas clear from opposition for the development to push through. We have COCs [coal-operating contracts] that have not moved and it’s not the fault of the developer, the developer could not proceed with development because of issues within their areas,” he said. Almendras is pushing for coal projects that would address the country’s baseload or 24-hour power requirement.
Mindanao suffers rotating power outages
(The Philippine Star) Updated October 25, 2011 12:00 AM
MANILA, Philippines - With the business climate already dampened by renewed insurgency-related violence, Mindanao’s on-and-off economic boom suffered another dampener this week as rotating brownouts worsened due to a severe drop in the island’s electricity supply.
According to the National Grid Corp. of the Philippines, which runs the power distribution network in the entire country, electricity supply in Mindanao was short by 81 megawatts of electricity as of Friday, forcing several areas in southern Philippines to go dark intermittently as the National Government struggled to control a renewed flare-up of violence in Basilan province, where 19 soldiers from the elite Army Scout Rangers were killed last Wednesday in a clash with rebels from the separatist Moro Islamic Liberation Front.
The NGCP said it put Mindanao “on red alert” effective 11 a.m. last Wednesday “due to zero contingency reserve brought about by planned outage and reduced capability of power plants.”
According to the NGCP, it lost 105 megawatts of electricity supply because of the shutdown of one of the two generating plants of Steag State Power Inc. in Villanueva, Misamis Oriental for scheduled maintenance repairs.
The state-owned National Power Corp. has also “derated” or reduced the generating capacity of its ageing hydro-electric and diesel power plants in various parts of Mindanao to prevent further degradation of its facilities, it added.
The NGCP said the NPC has downgraded the capacity of its Agus 1 hydroelectric power plant to 35 MW from its original 80 MW, Agus 2 to 80 MW from 180 MW, Agus 4 to 100 MW from 158 MW, Agus 5 to 30 MW from 55 MW, Agus 6 to 130 MW from 200 MW, Agus 7 to 25 MW from 54 MW, Pulangi 4 to 200 MW from 255 MW, and the Zamboanga City-based Western Mindanao Power Corp. diesel plants to 90 MW from 100 MW.
The Department of Energy had previously warned of a severe electricity supply situation in Mindanao starting next year when the summer season starts anew and drains water reserves in Mindanao’s hydro-electric power plant facilities.
MANILA, Philippines - With the business climate already dampened by renewed insurgency-related violence, Mindanao’s on-and-off economic boom suffered another dampener this week as rotating brownouts worsened due to a severe drop in the island’s electricity supply.
According to the National Grid Corp. of the Philippines, which runs the power distribution network in the entire country, electricity supply in Mindanao was short by 81 megawatts of electricity as of Friday, forcing several areas in southern Philippines to go dark intermittently as the National Government struggled to control a renewed flare-up of violence in Basilan province, where 19 soldiers from the elite Army Scout Rangers were killed last Wednesday in a clash with rebels from the separatist Moro Islamic Liberation Front.
The NGCP said it put Mindanao “on red alert” effective 11 a.m. last Wednesday “due to zero contingency reserve brought about by planned outage and reduced capability of power plants.”
According to the NGCP, it lost 105 megawatts of electricity supply because of the shutdown of one of the two generating plants of Steag State Power Inc. in Villanueva, Misamis Oriental for scheduled maintenance repairs.
The state-owned National Power Corp. has also “derated” or reduced the generating capacity of its ageing hydro-electric and diesel power plants in various parts of Mindanao to prevent further degradation of its facilities, it added.
The NGCP said the NPC has downgraded the capacity of its Agus 1 hydroelectric power plant to 35 MW from its original 80 MW, Agus 2 to 80 MW from 180 MW, Agus 4 to 100 MW from 158 MW, Agus 5 to 30 MW from 55 MW, Agus 6 to 130 MW from 200 MW, Agus 7 to 25 MW from 54 MW, Pulangi 4 to 200 MW from 255 MW, and the Zamboanga City-based Western Mindanao Power Corp. diesel plants to 90 MW from 100 MW.
The Department of Energy had previously warned of a severe electricity supply situation in Mindanao starting next year when the summer season starts anew and drains water reserves in Mindanao’s hydro-electric power plant facilities.
Monday, October 24, 2011
Mindanao’s rotating brownouts dampen business as power reserves go negative
Inquirer.net
9:01 am | Monday, October 24th, 2011
MANILA, Philippines – With the business climate dimmed by renewed insurgency-related violence, Mindanao’s on-and-off economic boom suffered another dampener this week as rotating brownouts worsened due to a severe drop in the island’s electricity supply.
According to the National Grid Corporation of the Philippines, which runs the power distribution network in the entire country, electricity supply in Mindanao was short by 81 megawatts of electricity as of Friday, forcing several areas in southern Philippines to go dark intermittently as the national government struggled to control a renewed flare-up of violence in Basilan province, where 19 soldiers from the elite Army Scout Rangers were killed last Wednesday in a clash with rebels from the separatist Moro Islamic Liberation Front.
The NGCP said it put Mindanao “on red alert” effective 11 a.m. last Wednesday “due to zero contingency reserve brought about by planned outage and reduced capability of power plants.”
According to the NGCP, it lost 105 megawatts of electricity supply because of the shutdown of one of the two generating plants of Steag State Power, Inc. in Villanueva, Misamis Oriental for scheduled maintenance repairs.
The state-owned National Power Corp. has also “derated” or reduced the generating capacity of its ageing hydro-electric and diesel power plants in various parts of Mindanao to prevent further degradation of its facilities, it added.
The NGCP said the NPC has downgraded the capacity of its Agus 1 hydroelectric power plant to 35 MW from its original 80 MW, Agus 2 to 80 MW from 180 MW, Agus 4 to 100 MW from 158 MW, Agus 5 to 30 MW from 55 MW, Agus 6 to 130 MW from 200 MW, Agus 7 to 25 MW from 54 MW, Pulangi 4 to 200 MW from 255 MW, and the Zamboanga City-based Western Mindanao Power Corp. diesel plants to 90 MW from 100 MW.
The Department of Energy had previously warned of a severe electricity supply situation in Mindanao starting next year when the summer season starts and drains water reserves in Mindanao’s hydro-electric power plant facilities.
Several private companies have started new power plant projects to offset the expected power supply shortage, among them Aboitiz Power Corporation which is proposing a 300-megawatt coal-fired power plant in Davao and the Alcantara Group which is building a 200-megawatt coal-fired power plant in Sarangani province and a 100-megawatt power plant in San Ramon district in Zamboanga City.
9:01 am | Monday, October 24th, 2011
MANILA, Philippines – With the business climate dimmed by renewed insurgency-related violence, Mindanao’s on-and-off economic boom suffered another dampener this week as rotating brownouts worsened due to a severe drop in the island’s electricity supply.
According to the National Grid Corporation of the Philippines, which runs the power distribution network in the entire country, electricity supply in Mindanao was short by 81 megawatts of electricity as of Friday, forcing several areas in southern Philippines to go dark intermittently as the national government struggled to control a renewed flare-up of violence in Basilan province, where 19 soldiers from the elite Army Scout Rangers were killed last Wednesday in a clash with rebels from the separatist Moro Islamic Liberation Front.
The NGCP said it put Mindanao “on red alert” effective 11 a.m. last Wednesday “due to zero contingency reserve brought about by planned outage and reduced capability of power plants.”
According to the NGCP, it lost 105 megawatts of electricity supply because of the shutdown of one of the two generating plants of Steag State Power, Inc. in Villanueva, Misamis Oriental for scheduled maintenance repairs.
The state-owned National Power Corp. has also “derated” or reduced the generating capacity of its ageing hydro-electric and diesel power plants in various parts of Mindanao to prevent further degradation of its facilities, it added.
The NGCP said the NPC has downgraded the capacity of its Agus 1 hydroelectric power plant to 35 MW from its original 80 MW, Agus 2 to 80 MW from 180 MW, Agus 4 to 100 MW from 158 MW, Agus 5 to 30 MW from 55 MW, Agus 6 to 130 MW from 200 MW, Agus 7 to 25 MW from 54 MW, Pulangi 4 to 200 MW from 255 MW, and the Zamboanga City-based Western Mindanao Power Corp. diesel plants to 90 MW from 100 MW.
The Department of Energy had previously warned of a severe electricity supply situation in Mindanao starting next year when the summer season starts and drains water reserves in Mindanao’s hydro-electric power plant facilities.
Several private companies have started new power plant projects to offset the expected power supply shortage, among them Aboitiz Power Corporation which is proposing a 300-megawatt coal-fired power plant in Davao and the Alcantara Group which is building a 200-megawatt coal-fired power plant in Sarangani province and a 100-megawatt power plant in San Ramon district in Zamboanga City.
Domingo Rejects ITH To RE
Manila Bulletin
By BERNIE CAHILES-MAGKILAT
October 24, 2011, 2:22am
MANILA, Philippines — Trade and Industry secretary Gregory L. Domingo has categorically said that renewable energy (RE) projects will no longer be entitled to income tax holiday (ITH) being granted by the Board of Investments to its registered enterprises to avoid “double-dipping” of incentives, saying RE projects have feed-in-tariff (FIT), which is a guaranteed rate.
"There is no double-dipping on incentives. As long as you have guaranteed rate there should be no more income tax holiday," said Domingo, who is also chairman of the Board of Investments, the government’s premier investment generating agency and is tasked to assess investments whether they are entitled to government tax incentives or not.
The FIT is a government guaranteed rate that RE developers can charge to their customers. FIT is actually a form of subsidy to RE developers to encourage companies to invest in RE project, which requires huge capital expenditure.
Based on the general guidelines of the Investment Priorities Plan (IPP), it is provided that projects with sovereign guarantee or guaranteed rate of return are not entitled to income tax holiday.
Earlier, Cristino L. Panlilio, DTI undersecretary for investment promotion, said that projects with sovereign guarantees, government subsidies and FIT should no longer be entitled to BoI incentives.
These forms of guarantees are those being granted by PhilExim, sovereign guarantees, contracts with government that guarantee a certain return on investments, among others. The latest form of subsidy would be the FIT, Panlilio said.
Panlilio, however, said that if the RE project is using the WESM (Wholesale Electricity Spot Market) rate it could avail of BoI incentives.
“FIT is a new thing but it functions like a sovereign guarantee or a subsidy,” said Panlilio.
The FIT is the cost consumers have to pay extra for the use of green energy, RE developers would contend. If the FIT is set at very high rate it would further burden consumers considering the already very high power rate now. Setting the FIT at a very low rate could also discourage investors.
Investors in RE are closely watching the FIT because that would determine if it were worth investing considering the high cost of RE development.
Based on the BoI management committee assessment of the P5.676 billion 30-megawatt solar power project of wholly-owned Filipino firm ATN Philippines Solar Energy Group Inc., which proposed to sell electricity for P17.95 per kilowatt-hour, the agency failed to come up with a definite decision.
By BERNIE CAHILES-MAGKILAT
October 24, 2011, 2:22am
MANILA, Philippines — Trade and Industry secretary Gregory L. Domingo has categorically said that renewable energy (RE) projects will no longer be entitled to income tax holiday (ITH) being granted by the Board of Investments to its registered enterprises to avoid “double-dipping” of incentives, saying RE projects have feed-in-tariff (FIT), which is a guaranteed rate.
"There is no double-dipping on incentives. As long as you have guaranteed rate there should be no more income tax holiday," said Domingo, who is also chairman of the Board of Investments, the government’s premier investment generating agency and is tasked to assess investments whether they are entitled to government tax incentives or not.
The FIT is a government guaranteed rate that RE developers can charge to their customers. FIT is actually a form of subsidy to RE developers to encourage companies to invest in RE project, which requires huge capital expenditure.
Based on the general guidelines of the Investment Priorities Plan (IPP), it is provided that projects with sovereign guarantee or guaranteed rate of return are not entitled to income tax holiday.
Earlier, Cristino L. Panlilio, DTI undersecretary for investment promotion, said that projects with sovereign guarantees, government subsidies and FIT should no longer be entitled to BoI incentives.
These forms of guarantees are those being granted by PhilExim, sovereign guarantees, contracts with government that guarantee a certain return on investments, among others. The latest form of subsidy would be the FIT, Panlilio said.
Panlilio, however, said that if the RE project is using the WESM (Wholesale Electricity Spot Market) rate it could avail of BoI incentives.
“FIT is a new thing but it functions like a sovereign guarantee or a subsidy,” said Panlilio.
The FIT is the cost consumers have to pay extra for the use of green energy, RE developers would contend. If the FIT is set at very high rate it would further burden consumers considering the already very high power rate now. Setting the FIT at a very low rate could also discourage investors.
Investors in RE are closely watching the FIT because that would determine if it were worth investing considering the high cost of RE development.
Based on the BoI management committee assessment of the P5.676 billion 30-megawatt solar power project of wholly-owned Filipino firm ATN Philippines Solar Energy Group Inc., which proposed to sell electricity for P17.95 per kilowatt-hour, the agency failed to come up with a definite decision.
Study on Angat Dam's structural integrity underway
By Dino Balabo (The Philippine Star) Updated October 24, 2011 12:00 AM
MALOLOS CITY, Philippines – A study on the structural stability and integrity of the 43-year-old Angat Dam will soon be underway, Bulacan Gov. Wilhelmino Alvarado said.
This came as stakeholders signed a memorandum of agreement (MOA) early this week and awarded the contract to conduct the study to a domestic engineering consulting company with a tie-up with a New Zealand-based firm.
Alvarado said he signed the MOA along with representatives of the Metropolitan Waterworks and Sewerage System (MWSS), Philippine Atmospheric, Geophysical and Astronomical Services Administration, Philippine Institute of Volcanology and Seismology, Power Sector Assets and Liabilities Management, and the Department of Science and Technology.
The contract for the feasibility study amounting to $1 million was awarded to the Engineering and Development Corp. of the Philippines and New Zealand firm Tonkin & Taylor.
Jose Dorado Jr., principal engineer of the MWSS’ Engineering and Project Management Department, said the findings and recommendations of the six-month study would be immediately carried out after its completion.
MWSS Administrator Gerardo Esquivel said that as early as April 5, President Aquino had approved the conduct of the study and eventual remediation of Angat Dam.
MALOLOS CITY, Philippines – A study on the structural stability and integrity of the 43-year-old Angat Dam will soon be underway, Bulacan Gov. Wilhelmino Alvarado said.
This came as stakeholders signed a memorandum of agreement (MOA) early this week and awarded the contract to conduct the study to a domestic engineering consulting company with a tie-up with a New Zealand-based firm.
Alvarado said he signed the MOA along with representatives of the Metropolitan Waterworks and Sewerage System (MWSS), Philippine Atmospheric, Geophysical and Astronomical Services Administration, Philippine Institute of Volcanology and Seismology, Power Sector Assets and Liabilities Management, and the Department of Science and Technology.
The contract for the feasibility study amounting to $1 million was awarded to the Engineering and Development Corp. of the Philippines and New Zealand firm Tonkin & Taylor.
Jose Dorado Jr., principal engineer of the MWSS’ Engineering and Project Management Department, said the findings and recommendations of the six-month study would be immediately carried out after its completion.
MWSS Administrator Gerardo Esquivel said that as early as April 5, President Aquino had approved the conduct of the study and eventual remediation of Angat Dam.
Ecozone stakeholders push extension of power rate discounts
Manila Times.net
Published : Monday, October 24, 2011 00:00 Written by : EUAN PAULO C. AÑONUEVO
ECONOMIC zone stakeholders have asked the government to extend their power rate discounts.
In separate letters to state-owned National Power Corp., Manila Electric Co., Philippine Economic Zone Authority (PEZA) and the Semiconductors and Electronics Industries of the Philippines Inc. asked for the extension of the Ecozone Rate Program, the memorandum of agreement for which will lapse once open access and retail competition commence in the power sector in December.
Signed in 2007, the ERP grants discounts on the electricity rates of accredited industries in ecozones under PEZA.
The program benefited 279 customers in industrial areas, representing 43 percent of total manufacturing exports valued at about $19 billion. These industries provide more than 222,213 jobs.
“Considering the benefits of the ERP to the economy and the country as a whole, there is a greater reason and necessity to extend the term of our MOA to ensure an affordable supply of power to vital industries and thus enhance their competitiveness in the global market,” Oscar Reyes, Meralco senior executive vice president and chief operating officer, said.
The Electric Power Industry Reform Act of 2001 mandates the establishment of an open access regime in the power sector wherein generators shall be allowed to market their output directly to qualified consumers. This aims to spur competition and efficiency in the power generation sector, which was once dominated by the government.
Once open access kicks in, however, Napocor’s supply contracts with utilities like Meralco would automatically lapse.
The Energy Regulatory Commission earlier set December 26 as the start of open access.
Lilia de Lima, PEZA director general, said the extension of the ERP would help secure locators’ power supply amid a projected shortfall in Luzon in the coming years.
“This will also enable ecozone export producers to focus on their business and even expand their production operations as they need not be bothered by the projected supply shortage in the Luzon grid and other uncertainties with the forthcoming implementation of retail competition and open access,” she said.
For his part, Ernie Santiago, Seipi president, said the continuation of the power rate discount would be a welcome “breathing space” for manufacturers who are still reeling from the global financial crisis and the disasters in Japan.
Published : Monday, October 24, 2011 00:00 Written by : EUAN PAULO C. AÑONUEVO
ECONOMIC zone stakeholders have asked the government to extend their power rate discounts.
In separate letters to state-owned National Power Corp., Manila Electric Co., Philippine Economic Zone Authority (PEZA) and the Semiconductors and Electronics Industries of the Philippines Inc. asked for the extension of the Ecozone Rate Program, the memorandum of agreement for which will lapse once open access and retail competition commence in the power sector in December.
Signed in 2007, the ERP grants discounts on the electricity rates of accredited industries in ecozones under PEZA.
The program benefited 279 customers in industrial areas, representing 43 percent of total manufacturing exports valued at about $19 billion. These industries provide more than 222,213 jobs.
“Considering the benefits of the ERP to the economy and the country as a whole, there is a greater reason and necessity to extend the term of our MOA to ensure an affordable supply of power to vital industries and thus enhance their competitiveness in the global market,” Oscar Reyes, Meralco senior executive vice president and chief operating officer, said.
The Electric Power Industry Reform Act of 2001 mandates the establishment of an open access regime in the power sector wherein generators shall be allowed to market their output directly to qualified consumers. This aims to spur competition and efficiency in the power generation sector, which was once dominated by the government.
Once open access kicks in, however, Napocor’s supply contracts with utilities like Meralco would automatically lapse.
The Energy Regulatory Commission earlier set December 26 as the start of open access.
Lilia de Lima, PEZA director general, said the extension of the ERP would help secure locators’ power supply amid a projected shortfall in Luzon in the coming years.
“This will also enable ecozone export producers to focus on their business and even expand their production operations as they need not be bothered by the projected supply shortage in the Luzon grid and other uncertainties with the forthcoming implementation of retail competition and open access,” she said.
For his part, Ernie Santiago, Seipi president, said the continuation of the power rate discount would be a welcome “breathing space” for manufacturers who are still reeling from the global financial crisis and the disasters in Japan.
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