Malaya plant to ensure summer power supply

Business Mirror

06 Feb 2014 

 

Written by Lenie Lectura

Energy Secretary Carlos Jericho L. Petilla said on Thursday the government will make use of the 650-megawatt (MW) Malaya thermal-power plant in Pililia, Rizal,  in the summer months all the way to August because power supply remains thin, particularly in Luzon.

“At this point, we have a tight supply. Supply is always tight on summer,” Petilla said.

Last year the peak demand was recorded at around 8,300 MW. This summer, the Department of Energy (DOE) said, the supply in Luzon could reach 10,500 MW as against a projected demand of 10,300 MW.

“Malaya will run on summer based on the National Grid Corp. of the Philippines [NGCP] projection as there is a need to. It [Malaya] will be needed by end of March up to August but it’s not going to be every day,” Petilla said.

Earlier, lawmakers questioned why the Malaya power plant was not used during the shutdown of the Malampaya gas facility. The Malaya power plant was supposed to cushion the power-rate increase of the Manila Electric Co. (Meralco).

When the Malampaya gas facility was placed on a maintenance shutdown from November 11 to December 10, 2013, the NGCP, which is responsible for overseeing the supply, said there was adequate supply in Luzon. As such, it said, there was no need to deploy Malaya power plant as a must-run unit.

Besides, Malaya’s cost is too high, way higher than the prices in the spot market, the NGCP said then.

But Petilla did not say if Malaya would continue to charge higher power rates. “That is PSALM’s [Power Sector Assets and Liabilities Management Corp.] call, not the DOE,” Petilla added. “Unless [PSALM] applies for an adjustment.”

Nonetheless, Petilla appealed to the people to lessen their power consumption during summer. “At this point, it would really help if we tighten our consumption.”

Meanwhile, Malacañang also sought to allay fears of looming blackouts, saying the DOE had already lined up alternative power sources in anticipation of increased demand for electric supply to beat the heat during the summer months.

In a news briefing, Presidential Communications Operations Office Secretary Herminio B. Coloma Jr. said the government had taken steps to provide uninterrupted supply of electricity to worried consumers.

Aside from using the Malaya plant, Coloma said the government, through the DOE, advised other power plants to conduct preventive and regular maintenance of their facilities “so they will operate during the months when demand for power peaks.”   source