Energy-efficiency initiatives, programs pushed
By Amy R. Remo
Philippine Daily Inquirer 12:12 am | Wednesday, July 30th, 2014
The European Chamber of Commerce of the Philippines (ECCP) has urged government leaders and company executives to invest in energy-efficiency initiatives and programs that will help avert an expected 400-megawatt (MW) power supply shortage in Luzon next year.
Henry Schumacher, ECCP vice president for external affairs, stressed that implementing energy conservation alone would easily “save 20 to 30 percent of energy consumption and that is easily the capacity of the power plant we need as soon as possible or the energy deficiency we are facing” in the coming years.
“The ECCP is deeply concerned about the power situation in the country. We expect a reserve deficiency in the Luzon grid next year in the range of 300 to 400 MW or the size of a regular power plant. No one can buy a 300 MW power plant off the shelf. It takes a minimum of three years and in the Philippines with all the 162 environmental and other clearances, more than five years to get a good sized power plant ready for hookup to the grid,” Schumacher explained.
“But there is a short-term solution: Energy saving. We have maintained for a long time that if all of us, from the government to the private sector, from industrial zones to the malls, from call centers to individuals,” he added.
Schumacher urged high-ranking government officials, from the national to the local levels, to help create a more conducive environment where investment in energy efficiency could be strongly encouraged through the offering of a “carrot and stick” policy. Such a policy referred to offering incentives for those who make the right move and penalties for those who need to be pushed into energy efficiency.
“The ‘stick’ is needed to support energy supply as the driver for economic growth we are looking forward to,” Schumacher said.
The ECCP official likewise enjoined owners of non-energy efficient buildings as well as the CEOs, CFOs and facility managers of each company to make the necessary investments in energy efficiency, especially since reliable and competitive power was the key in driving not only economic growth, but their respective operations as well.
Schumacher further pointed out that there was no downside to energy efficiency as investments in such measures have an average payback period of three to five years and there were also a number of banks committed to make financing for energy efficiency projects available.
He disclosed that there were also a number of the so-called energy-efficiency vendors—from lighting to insulation to air-conditioning—that were willing to be paid through the energy saved because of the investments made in their systems and equipment.
Short-term measures to buy generation capacity would be “super expensive” and only further increase the prices of electricity, he added. source
Wednesday, July 30, 2014
Monday, July 28, 2014
Did Petilla just abort economic takeoff?
DEMAND AND SUPPLY By Boo Chanco (The Philippine Star) | Updated July 28, 2014 - 12:00am
If you listen to businessmen talking about expected power blackouts next year, you would start blaming Energy Secretary Ikot Petilla for aborting the economic takeoff. For many, Petilla need not emphasize the obvious but just quietly do what he must to alleviate the problem.
I don’t blame the business sector for feeling frustrated. Here we are again, finally attracting serious foreign investor interest, and the energy secretary screams blackout. What sane investor will want to bring some operations here if power availability cannot be assured?
Yet, I can also understand why Petilla had to scream the reality of the problem the way he did. He wants it on record that he issued a warning and offered a solution. He knows, as we should, that nothing gets done in this country unless we are facing a crisis.
In a sense, we can blame government for this looming crisis but the heat of our anger will not produce a kilowatt hour of power supply. We may scoff at Petilla’s band aid solution but it does seem like a feasible if desperate way of having reserve power when we start needing it starting March next year. Now it is too late to do anything much.
Petilla has to understand that people are allergic to granting emergency powers to a President to solve a power shortage problem. It happened before and that emergency power was abused to buy more capacity than needed and at take or pay basis. Our electricity rates zoomed because we had to pay for power we did not consume. The rates have not gone down since as we are still paying so called stranded costs.
Since emergency power means the lifting of the usual public bidding procedures, people are doubly wary. We are still rather angry at how public officials stole our money through DAP and PDAF. Officials just can’t be trusted with the people’s money to give them a blank check to buy generators.
Perhaps Petilla can come up with a number of other possible measures to address the projected power supply shortage. Just buying generators without bidding sounds a bit suspicious specially because he is a politician and campaign season is just around the corner.
The other problem with these generators is that these units use diesel or gasoline and the electricity produced is rather expensive. Perhaps the energy department can look into affordable solar home kits if these are now available and tell the public which ones make sense.
Or the energy department can try to convince those establishments with large standby generators to sell to the Grid when called upon. I heard that Ikot offered to pay P1.50 kwh which will not even cover fuel costs.
PhilStar Reader Roland Lorilla in an e-mail to me last week, commented that “with the Department of Energy conceding that there will be an acute power crisis, the time has come to allow net metering for private generators. We must tap the power available from thousands of standby power generators. This is how we can avert the crisis.”
Mr. Lorilla had been writing me about his suggestion to tap private generators through net metering. “The solution to our energy woes is to diversify our energy sources by allowing everyone to participate in energy generation. If somebody can produce (by whatever means) cheaper electricity than from the utility, he must be given the chance to do so. He must be allowed sell his power by allowing him access to the grid.
“The way to do this is to allow grid intertie and net metering. If we do this, we will have everyone thinking and innovating on how to produce electricity cheaply. If we create the right condition for small scale power generation to prosper, it could be the solution to our energy problems. Grid intertie and net metering are key to making it feasible. It won’t work without these.
“We need to have a law enacted to make the above possible. The law must allow net metering, tax exemption (including fuel taxes) and exemption from environmental laws and regulations as compliance with these laws and regulations are a huge hindrance to the feasibility of small scale power projects.”
It just might work with some adjustments. With the cost of solar panels going down significantly in China, private homes and buildings may find it worthwhile to put these panels on their roofs. The electricity they produce for their own use is so much power the Grid need not supply.
Selling to the Grid through net metering may be a bit more complicated for most of our utilities but Meralco is already offering the service. The problem is the high front end cost for setting up the solar panels, estimated at about half a million pesos.
In the end this may be the way for households to provide for their basic electricity needs. Tax breaks may be necessary to import these panels in sufficient scale to make it more affordable.
It should be interesting for the energy department to come up with simple alternative solutions complete with costing instead of just a single solution of buying those 30MW modules.
The more important thing is to address the problem head on. Why aren’t the private sector power companies building more power plants? Unless this question is resolved, this power crisis will be hounding us forever.
The power producers say government has not fully implemented Epira. Why not? Will it make a difference now? Will open access whose implementation had been delayed be the answer we are waiting for? Or should Epira be modified to allow for some government participation in power generation?
It may be true that the energy secretary aborted our take off. But he can say it will be aborted anyway once the power supply shortage becomes apparent. He can say he has warned us and offered a solution except that his warning is too late to do much and the solution he offered is questionable.
Anyway we look at it, we are screwed and we had better start thinking of how to protect ourselves from that imminent shortage while we have some time. For ordinary mortals like us, we can only stock up on candles and batteries for flashlights unless a cost effective solar solution for the household comes around soon. source
If you listen to businessmen talking about expected power blackouts next year, you would start blaming Energy Secretary Ikot Petilla for aborting the economic takeoff. For many, Petilla need not emphasize the obvious but just quietly do what he must to alleviate the problem.
I don’t blame the business sector for feeling frustrated. Here we are again, finally attracting serious foreign investor interest, and the energy secretary screams blackout. What sane investor will want to bring some operations here if power availability cannot be assured?
Yet, I can also understand why Petilla had to scream the reality of the problem the way he did. He wants it on record that he issued a warning and offered a solution. He knows, as we should, that nothing gets done in this country unless we are facing a crisis.
In a sense, we can blame government for this looming crisis but the heat of our anger will not produce a kilowatt hour of power supply. We may scoff at Petilla’s band aid solution but it does seem like a feasible if desperate way of having reserve power when we start needing it starting March next year. Now it is too late to do anything much.
Petilla has to understand that people are allergic to granting emergency powers to a President to solve a power shortage problem. It happened before and that emergency power was abused to buy more capacity than needed and at take or pay basis. Our electricity rates zoomed because we had to pay for power we did not consume. The rates have not gone down since as we are still paying so called stranded costs.
Since emergency power means the lifting of the usual public bidding procedures, people are doubly wary. We are still rather angry at how public officials stole our money through DAP and PDAF. Officials just can’t be trusted with the people’s money to give them a blank check to buy generators.
Perhaps Petilla can come up with a number of other possible measures to address the projected power supply shortage. Just buying generators without bidding sounds a bit suspicious specially because he is a politician and campaign season is just around the corner.
The other problem with these generators is that these units use diesel or gasoline and the electricity produced is rather expensive. Perhaps the energy department can look into affordable solar home kits if these are now available and tell the public which ones make sense.
Or the energy department can try to convince those establishments with large standby generators to sell to the Grid when called upon. I heard that Ikot offered to pay P1.50 kwh which will not even cover fuel costs.
PhilStar Reader Roland Lorilla in an e-mail to me last week, commented that “with the Department of Energy conceding that there will be an acute power crisis, the time has come to allow net metering for private generators. We must tap the power available from thousands of standby power generators. This is how we can avert the crisis.”
Mr. Lorilla had been writing me about his suggestion to tap private generators through net metering. “The solution to our energy woes is to diversify our energy sources by allowing everyone to participate in energy generation. If somebody can produce (by whatever means) cheaper electricity than from the utility, he must be given the chance to do so. He must be allowed sell his power by allowing him access to the grid.
“The way to do this is to allow grid intertie and net metering. If we do this, we will have everyone thinking and innovating on how to produce electricity cheaply. If we create the right condition for small scale power generation to prosper, it could be the solution to our energy problems. Grid intertie and net metering are key to making it feasible. It won’t work without these.
“We need to have a law enacted to make the above possible. The law must allow net metering, tax exemption (including fuel taxes) and exemption from environmental laws and regulations as compliance with these laws and regulations are a huge hindrance to the feasibility of small scale power projects.”
It just might work with some adjustments. With the cost of solar panels going down significantly in China, private homes and buildings may find it worthwhile to put these panels on their roofs. The electricity they produce for their own use is so much power the Grid need not supply.
Selling to the Grid through net metering may be a bit more complicated for most of our utilities but Meralco is already offering the service. The problem is the high front end cost for setting up the solar panels, estimated at about half a million pesos.
In the end this may be the way for households to provide for their basic electricity needs. Tax breaks may be necessary to import these panels in sufficient scale to make it more affordable.
It should be interesting for the energy department to come up with simple alternative solutions complete with costing instead of just a single solution of buying those 30MW modules.
The more important thing is to address the problem head on. Why aren’t the private sector power companies building more power plants? Unless this question is resolved, this power crisis will be hounding us forever.
The power producers say government has not fully implemented Epira. Why not? Will it make a difference now? Will open access whose implementation had been delayed be the answer we are waiting for? Or should Epira be modified to allow for some government participation in power generation?
It may be true that the energy secretary aborted our take off. But he can say it will be aborted anyway once the power supply shortage becomes apparent. He can say he has warned us and offered a solution except that his warning is too late to do much and the solution he offered is questionable.
Anyway we look at it, we are screwed and we had better start thinking of how to protect ourselves from that imminent shortage while we have some time. For ordinary mortals like us, we can only stock up on candles and batteries for flashlights unless a cost effective solar solution for the household comes around soon. source
Maibarara power plant all set for $25-M expansion
By Riza T. Olchondra
Philippine Daily Inquirer12:08 am | Monday, July 28th, 2014
The 20-megawatt (MW) Maibarara integrated geothermal power facility that started commercial operations early this year would soon be expanded to the tune of $25 million to address the surge in demand for energy.
PetroEnergy Resources Corp., which leads the project vehicle Maibarara Geothermal Inc. (MGI), may expand the project in two phases.
“We are expanding Maibarara by 10 MW to bring the capacity to 30 MW. Our [capital expenditure] for that is about $25 million. After that, we will consider another expansion,” company vice president Francisco G. Delfin Jr. told the Inquirer.
Work will start within the year so that the expansion may be completed by end-2015 or early 2016, he said.
PetroEnergy Resources president Milagros V. Reyes said after the 10-MW expansion, another 10 MW in capacity may be added.
The existing 20 MW integrated steamfield-power plant facility in Sto. Tomas, Batangas entailed an investment of $78 million, of which almost $55 million was financed through loans, via RCBC and BPI, while equity accounted for the balance of about $23 million source
Philippine Daily Inquirer12:08 am | Monday, July 28th, 2014
The 20-megawatt (MW) Maibarara integrated geothermal power facility that started commercial operations early this year would soon be expanded to the tune of $25 million to address the surge in demand for energy.
PetroEnergy Resources Corp., which leads the project vehicle Maibarara Geothermal Inc. (MGI), may expand the project in two phases.
“We are expanding Maibarara by 10 MW to bring the capacity to 30 MW. Our [capital expenditure] for that is about $25 million. After that, we will consider another expansion,” company vice president Francisco G. Delfin Jr. told the Inquirer.
Work will start within the year so that the expansion may be completed by end-2015 or early 2016, he said.
PetroEnergy Resources president Milagros V. Reyes said after the 10-MW expansion, another 10 MW in capacity may be added.
The existing 20 MW integrated steamfield-power plant facility in Sto. Tomas, Batangas entailed an investment of $78 million, of which almost $55 million was financed through loans, via RCBC and BPI, while equity accounted for the balance of about $23 million source
Power firms fear summer shortage
By Iris Gonzales (The Philippine Star) | Updated July 28, 2014 - 12:00am
MANILA, Philippines - Power generators said it would be difficult to provide up to 500 megawatts in additional capacity next year, which Energy Secretary Carlos Jericho Petilla said is what the country needs to avert a power crisis.
Petilla proposed the declaration of a state of emergency in the power sector by invoking Section 71 of the Electric Power Industry Reform Act (EPIRA) to give the government the authority to put up additional generation capacity.
“It would be difficult for anyone to put together 500 MW in such a short time. It’s going to be difficult,” according to Ernesto Pantangco, executive vice president of First Gen Corp. and chairman of the energy committee of the Management Association of the Philippines (MAP)
Pantangco, however, said power generators have yet to come out with their position on Petilla’s proposal.
He said MAP and the Philippine Independent Power Producers Association (PIPPA) are still studying the proposal to invoke Section 71 of the EPIRA.
“We are still consulting with various members,” Pantangco said.
He explained it would be difficult for any power company to come up with an additional capacity of up to 500 MW in time for the summer of 2015 due to delays in permitting and other concerns.
The declaration of a state of emergency would allow the government, through the Power Sector Assets and Liabilities Management Corp. (PSALM) to tap additional power capacity for the summer of 2015.
Petilla said there is a projected deficit of 200 MW for some days of April and May 2015.
Under the plan, the government through PSALM will rent diesel-fired power facilities on short-term contracts of two years if possible. source
MANILA, Philippines - Power generators said it would be difficult to provide up to 500 megawatts in additional capacity next year, which Energy Secretary Carlos Jericho Petilla said is what the country needs to avert a power crisis.
Petilla proposed the declaration of a state of emergency in the power sector by invoking Section 71 of the Electric Power Industry Reform Act (EPIRA) to give the government the authority to put up additional generation capacity.
“It would be difficult for anyone to put together 500 MW in such a short time. It’s going to be difficult,” according to Ernesto Pantangco, executive vice president of First Gen Corp. and chairman of the energy committee of the Management Association of the Philippines (MAP)
Pantangco, however, said power generators have yet to come out with their position on Petilla’s proposal.
He said MAP and the Philippine Independent Power Producers Association (PIPPA) are still studying the proposal to invoke Section 71 of the EPIRA.
“We are still consulting with various members,” Pantangco said.
He explained it would be difficult for any power company to come up with an additional capacity of up to 500 MW in time for the summer of 2015 due to delays in permitting and other concerns.
The declaration of a state of emergency would allow the government, through the Power Sector Assets and Liabilities Management Corp. (PSALM) to tap additional power capacity for the summer of 2015.
Petilla said there is a projected deficit of 200 MW for some days of April and May 2015.
Under the plan, the government through PSALM will rent diesel-fired power facilities on short-term contracts of two years if possible. source
Sunday, July 27, 2014
Negotiations to start on power barge sale
Business World Online
Posted on July 27, 2014 09:57:29 PM
THE POWER Sector Assets and Liabilities Management Corp. (PSALM) will soon start negotiations with the second highest bidder for sale of three state-owned power barges, the firm’s top official said over the weekend.
The move comes after the winning bidder, SPC Power Corp., decided to withdraw its offer for power barges 101, 102 and 103 that were auctioned off last year.
Emmanuel R. Ledesma, Jr., PSALM president and chief executive officer, said the Office of the Government Corporate Counsel (OGCC) affirmed the legality of the planned negotiation with Trans-Asia Oil and Energy Development Corp.
“Pursuant to the OGCC opinion, we are looking at negotiations with the second highest ranking bidder within the terms and conditions provided in the guidelines,” Mr. Ledesma said in a text message.
“As soon as I get board approval on the matter, we will proceed with the process.”
The official said PSALM targets the turnover of the assets to Trans-Asia this year.
Trans-Asia President Francisco L. Viray said separately that the company is still interested in the power barges and will be willing to negotiate with PSALM.
In October last year, SPC subsidiary SPC Island Power Corp. was declared the highest bidder with a P545.89-million offer for the three power barges now moored in Iloilo.
Trans-Asia, as the other party qualified to proceed with bidding, submitted a lower offer of P370.52 million.
However, SPC Island last May decided not to pursue its bid due to damage caused by super-typhoon Yolanda (international name: Haiyan) to power barge 103 in Nov. 8 to 9 last year.
Since the barges were sold as one package, SPC Island’s withdrawal covered all the three assets.
Besides the three power barges, PSALM last year also auctioned off power barge 104, but the bidding failed after both SPC Island and Trans-Asia failed to meet the reserve price set for the asset.
SPC Island submitted a bid of P45.89 million, while Trans-Asia submitted a P30-million offer.
Eight firms initially expressed interest to participate in the privatization of all the power barges. Besides SPC Island and Trans-Asia, the other companies that bought bid documents were: American Capital Energy & Infrastructure; FDC Utilities, Inc.; S.L. Development Construction Corp.; Therma Power Visayas, Inc.; Vivant Corp.; and D.M. Wenceslao & Associates, Inc.
Power barges 101 and 102, which were commissioned in 1981, are moored in barrio Obrero in Iloilo City. Power barges 103 and 104, which began operating in 1985, are located in Estancia, Iloilo and Ilang, Davao City, respectively.
Each barge has a 32-megawatt capacity.
The first two rounds of bidding for the barges conducted last year both failed after only one bidder participated in each exercise.
In the first bidding, held in May 2012, only ACTA Power Corp. -- a joint venture of Ayala Corp.’s AC Energy Holdings, Inc. and Trans-Asia -- submitted an offer.
The second auction, held in August 2012, saw Trans-Asia as the lone bidder.
PSALM is the agency mandated by Republic Act No. 9136, or the Electric Power Industry Reform Act of 2001, to handle the sale of the remaining state power assets and financial obligations of the National Power Corp. -- Claire-Ann Marie C. Feliciano source
Posted on July 27, 2014 09:57:29 PM
THE POWER Sector Assets and Liabilities Management Corp. (PSALM) will soon start negotiations with the second highest bidder for sale of three state-owned power barges, the firm’s top official said over the weekend.
The move comes after the winning bidder, SPC Power Corp., decided to withdraw its offer for power barges 101, 102 and 103 that were auctioned off last year.
Emmanuel R. Ledesma, Jr., PSALM president and chief executive officer, said the Office of the Government Corporate Counsel (OGCC) affirmed the legality of the planned negotiation with Trans-Asia Oil and Energy Development Corp.
“Pursuant to the OGCC opinion, we are looking at negotiations with the second highest ranking bidder within the terms and conditions provided in the guidelines,” Mr. Ledesma said in a text message.
“As soon as I get board approval on the matter, we will proceed with the process.”
The official said PSALM targets the turnover of the assets to Trans-Asia this year.
Trans-Asia President Francisco L. Viray said separately that the company is still interested in the power barges and will be willing to negotiate with PSALM.
In October last year, SPC subsidiary SPC Island Power Corp. was declared the highest bidder with a P545.89-million offer for the three power barges now moored in Iloilo.
Trans-Asia, as the other party qualified to proceed with bidding, submitted a lower offer of P370.52 million.
However, SPC Island last May decided not to pursue its bid due to damage caused by super-typhoon Yolanda (international name: Haiyan) to power barge 103 in Nov. 8 to 9 last year.
Since the barges were sold as one package, SPC Island’s withdrawal covered all the three assets.
Besides the three power barges, PSALM last year also auctioned off power barge 104, but the bidding failed after both SPC Island and Trans-Asia failed to meet the reserve price set for the asset.
SPC Island submitted a bid of P45.89 million, while Trans-Asia submitted a P30-million offer.
Eight firms initially expressed interest to participate in the privatization of all the power barges. Besides SPC Island and Trans-Asia, the other companies that bought bid documents were: American Capital Energy & Infrastructure; FDC Utilities, Inc.; S.L. Development Construction Corp.; Therma Power Visayas, Inc.; Vivant Corp.; and D.M. Wenceslao & Associates, Inc.
Power barges 101 and 102, which were commissioned in 1981, are moored in barrio Obrero in Iloilo City. Power barges 103 and 104, which began operating in 1985, are located in Estancia, Iloilo and Ilang, Davao City, respectively.
Each barge has a 32-megawatt capacity.
The first two rounds of bidding for the barges conducted last year both failed after only one bidder participated in each exercise.
In the first bidding, held in May 2012, only ACTA Power Corp. -- a joint venture of Ayala Corp.’s AC Energy Holdings, Inc. and Trans-Asia -- submitted an offer.
The second auction, held in August 2012, saw Trans-Asia as the lone bidder.
PSALM is the agency mandated by Republic Act No. 9136, or the Electric Power Industry Reform Act of 2001, to handle the sale of the remaining state power assets and financial obligations of the National Power Corp. -- Claire-Ann Marie C. Feliciano source
Saturday, July 26, 2014
Benefits of coal unclear in Semirara
By: Nestor P. Burgos Jr.
Inquirer Visayas
12:41 AM July 26th, 2014
Danilo Domingo, 58, has been living all his life in Barangay Tinogboc on Semirara Island. Now, he fears for the future of his children and their island.
“Our mangroves, sea grass and other marine resources are fast diminishing. There might be nothing left when the mining ends,” he told the Inquirer.
In a forum on the impact of mining operations on Antique province, Domingo and other Semirara residents pleaded for assistance from government agencies and environmental advocates to help them cope with the effects of coal mining on their island’s marine resources and the alleged dislocation of residents.
“Government agencies should strictly monitor and ensure the implementation of environmental rules and regulations,” said Domingo, head of Bolo Fisherfolk Farmers Association.
He cited a study conducted by researchers tapped by Pambansang Kilusan ng mga Samahang Magsasaka showing that 31 of the 35 mangrove species in the country are existing on Semirara Island.
But the study, based on satellite images using Google Earth’s time slider, showed that mangrove areas on the island dropped from 427.92 hectares in 2009 to 344 ha in 2014 or a decrease of 83.92 ha.
“Many mangrove areas have been filled in,”Domingo said.
The forum, jointly organized by nongovernment organizations with the support of the British Embassy in Manila, was attended by representatives of the Commission on Human Rights, the Department of Environment and Natural Resources (DENR) and the Department of Energy (DOE).
The municipal government of Caluya, Semirara Mining Corp. (SMC) and the office of Antique Gov. Exequiel Javier did not send representatives to attend the forum despite being invited by the organizers.
The Inquirer repeatedly called and sent text messages to Juniper Barroquillo, SMC administrative officer, but he did not respond.
For two weeks, the Inquirer also tried to reach lawyer John Sadullo, SMC vice president for legal affairs, but he was either out of his office or on sick leave. His office did not return calls nor sent a statement despite repeated requests.
But the company has in the past repeatedly denied allegations of environmental violations causing pollution on the island.
On its website, SMC said its reforestation team had planted
1.2 million trees on the island from 2000 to 2012. It had planted mangroves on a 172-hectare area by 2012.
The abandoned and barren Unong mine is being rehabilitated and planted with trees to stabilize the soil. The mine pit that is now filled with water hosts eels, tilapia and other fish and is being developed into an eco-tourism site, according to the SMC website.
Retired Energy Undersecretary Ramon Allan Oca, who has extensive knowledge of the SMC operations, said the company had met international environmental, safety and quality standards.
He said the operations and environmental impact were regularly being evaluated by the Multipartite Monitoring Team (MMT). The MMT, composed of representatives of SMC, the DENR and the community, is tasked to ensure that regulations and conditions of the environmental compliance certificate are followed.
Since mining operations started in Semirara in 1977, Domingo has seen the island become one of Asia’s biggest coal mines. Semirara is among a group of nine islands comprising Caluya town in Antique. Semirara is composed of three villages (Semirara, Tinogboc and Alegria).
SMC, owned by DMCI Holdings Inc., is the country’s biggest domestic producer of coal, accounting for 7,570,003 metric tons of the total 7,842,409 MT produced locally in 2013, according to data from the coal division of the DOE.
SMC took over the then government-owned Semirara Coal Corp. in 1999. In 2011, it posted a P6-billion profit.
The company employs some 2,800 employees with about 4,000 people relying on its operations for livelihood.
Mining is the biggest source of income of Semirara village, which hosts SMC’s Panian mining pit, and Caluya municipality.
The internal revenue allotment of Semirara village reached P225 million in 2012 while Caluya municipality had a royalty share of P290 million.
But Domingo said the island and the people were paying a high price.
Despite massive earnings from coal production, the lives of people especially in Tinogboc and Alegria have not significantly improved, he said.
He cited unpaved roads, lack of infrastructure, absence of a hospital with adequate personnel and facilities, and the absence of a decent pier.
Provincial Board Member Errol Santillan admitted at the forum that even he, a provincial official, does not have adequate information about the situation on the island.
“The island is too far from the provincial center, and we hardly get any information. We were not even consulted on the [DOE’s] approval to extend and expand the operations of SMC,” he said.
In 2008, the DOE extended SMC’s coal operating contract (COC) by another 15 years or up to 2027. The original
35-year COC was supposed to expire in 2012.
The COC gives exclusive right to SMC to explore, develop and mine for coal on Semirara Island.
The DOE in 2009 also expanded the coverage of the COC from the original 5,500 ha in Semirara to 12,700 ha, including 3,000 ha in Caluya, the main island, and 4,200 ha on Sibay Island.
Santillan urged the DENR to study possibilities of declaring other areas in Caluya and Antique as environmentally protected areas and off limits to mining exploration and extraction, citing the rich and diverse marine resources on the island.
“If we cannot stop the existing mining operations, let us limit them, especially in areas where people are relying on marine resources for their livelihood,” he told the Inquirer. source
Inquirer Visayas
12:41 AM July 26th, 2014
Danilo Domingo, 58, has been living all his life in Barangay Tinogboc on Semirara Island. Now, he fears for the future of his children and their island.
“Our mangroves, sea grass and other marine resources are fast diminishing. There might be nothing left when the mining ends,” he told the Inquirer.
In a forum on the impact of mining operations on Antique province, Domingo and other Semirara residents pleaded for assistance from government agencies and environmental advocates to help them cope with the effects of coal mining on their island’s marine resources and the alleged dislocation of residents.
“Government agencies should strictly monitor and ensure the implementation of environmental rules and regulations,” said Domingo, head of Bolo Fisherfolk Farmers Association.
He cited a study conducted by researchers tapped by Pambansang Kilusan ng mga Samahang Magsasaka showing that 31 of the 35 mangrove species in the country are existing on Semirara Island.
But the study, based on satellite images using Google Earth’s time slider, showed that mangrove areas on the island dropped from 427.92 hectares in 2009 to 344 ha in 2014 or a decrease of 83.92 ha.
“Many mangrove areas have been filled in,”Domingo said.
The forum, jointly organized by nongovernment organizations with the support of the British Embassy in Manila, was attended by representatives of the Commission on Human Rights, the Department of Environment and Natural Resources (DENR) and the Department of Energy (DOE).
The municipal government of Caluya, Semirara Mining Corp. (SMC) and the office of Antique Gov. Exequiel Javier did not send representatives to attend the forum despite being invited by the organizers.
The Inquirer repeatedly called and sent text messages to Juniper Barroquillo, SMC administrative officer, but he did not respond.
For two weeks, the Inquirer also tried to reach lawyer John Sadullo, SMC vice president for legal affairs, but he was either out of his office or on sick leave. His office did not return calls nor sent a statement despite repeated requests.
But the company has in the past repeatedly denied allegations of environmental violations causing pollution on the island.
On its website, SMC said its reforestation team had planted
1.2 million trees on the island from 2000 to 2012. It had planted mangroves on a 172-hectare area by 2012.
The abandoned and barren Unong mine is being rehabilitated and planted with trees to stabilize the soil. The mine pit that is now filled with water hosts eels, tilapia and other fish and is being developed into an eco-tourism site, according to the SMC website.
Retired Energy Undersecretary Ramon Allan Oca, who has extensive knowledge of the SMC operations, said the company had met international environmental, safety and quality standards.
He said the operations and environmental impact were regularly being evaluated by the Multipartite Monitoring Team (MMT). The MMT, composed of representatives of SMC, the DENR and the community, is tasked to ensure that regulations and conditions of the environmental compliance certificate are followed.
Since mining operations started in Semirara in 1977, Domingo has seen the island become one of Asia’s biggest coal mines. Semirara is among a group of nine islands comprising Caluya town in Antique. Semirara is composed of three villages (Semirara, Tinogboc and Alegria).
SMC, owned by DMCI Holdings Inc., is the country’s biggest domestic producer of coal, accounting for 7,570,003 metric tons of the total 7,842,409 MT produced locally in 2013, according to data from the coal division of the DOE.
SMC took over the then government-owned Semirara Coal Corp. in 1999. In 2011, it posted a P6-billion profit.
The company employs some 2,800 employees with about 4,000 people relying on its operations for livelihood.
Mining is the biggest source of income of Semirara village, which hosts SMC’s Panian mining pit, and Caluya municipality.
The internal revenue allotment of Semirara village reached P225 million in 2012 while Caluya municipality had a royalty share of P290 million.
But Domingo said the island and the people were paying a high price.
Despite massive earnings from coal production, the lives of people especially in Tinogboc and Alegria have not significantly improved, he said.
He cited unpaved roads, lack of infrastructure, absence of a hospital with adequate personnel and facilities, and the absence of a decent pier.
Provincial Board Member Errol Santillan admitted at the forum that even he, a provincial official, does not have adequate information about the situation on the island.
“The island is too far from the provincial center, and we hardly get any information. We were not even consulted on the [DOE’s] approval to extend and expand the operations of SMC,” he said.
In 2008, the DOE extended SMC’s coal operating contract (COC) by another 15 years or up to 2027. The original
35-year COC was supposed to expire in 2012.
The COC gives exclusive right to SMC to explore, develop and mine for coal on Semirara Island.
The DOE in 2009 also expanded the coverage of the COC from the original 5,500 ha in Semirara to 12,700 ha, including 3,000 ha in Caluya, the main island, and 4,200 ha on Sibay Island.
Santillan urged the DENR to study possibilities of declaring other areas in Caluya and Antique as environmentally protected areas and off limits to mining exploration and extraction, citing the rich and diverse marine resources on the island.
“If we cannot stop the existing mining operations, let us limit them, especially in areas where people are relying on marine resources for their livelihood,” he told the Inquirer. source
Benefits of coal unclear in Semirara
Philippine Daily Inquirer
Byline By: Nestor P. Burgos Jr.
Inquirer Visayas
12:41 AM July 26th, 2014
Danilo Domingo, 58, has been living all his life in Barangay Tinogboc on Semirara Island. Now, he fears for the future of his children and their island.
“Our mangroves, sea grass and other marine resources are fast diminishing. There might be nothing left when the mining ends,” he told the Inquirer.
In a forum on the impact of mining operations on Antique province, Domingo and other Semirara residents pleaded for assistance from government agencies and environmental advocates to help them cope with the effects of coal mining on their island’s marine resources and the alleged dislocation of residents.
“Government agencies should strictly monitor and ensure the implementation of environmental rules and regulations,” said Domingo, head of Bolo Fisherfolk Farmers Association.
He cited a study conducted by researchers tapped by Pambansang Kilusan ng mga Samahang Magsasaka showing that 31 of the 35 mangrove species in the country are existing on Semirara Island.
But the study, based on satellite images using Google Earth’s time slider, showed that mangrove areas on the island dropped from 427.92 hectares in 2009 to 344 ha in 2014 or a decrease of 83.92 ha.
“Many mangrove areas have been filled in,”Domingo said.
The forum, jointly organized by nongovernment organizations with the support of the British Embassy in Manila, was attended by representatives of the Commission on Human Rights, the Department of Environment and Natural Resources (DENR) and the Department of Energy (DOE).
The municipal government of Caluya, Semirara Mining Corp. (SMC) and the office of Antique Gov. Exequiel Javier did not send representatives to attend the forum despite being invited by the organizers.
The Inquirer repeatedly called and sent text messages to Juniper Barroquillo, SMC administrative officer, but he did not respond.
For two weeks, the Inquirer also tried to reach lawyer John Sadullo, SMC vice president for legal affairs, but he was either out of his office or on sick leave. His office did not return calls nor sent a statement despite repeated requests.
But the company has in the past repeatedly denied allegations of environmental violations causing pollution on the island.
On its website, SMC said its reforestation team had planted
1.2 million trees on the island from 2000 to 2012. It had planted mangroves on a 172-hectare area by 2012.
The abandoned and barren Unong mine is being rehabilitated and planted with trees to stabilize the soil. The mine pit that is now filled with water hosts eels, tilapia and other fish and is being developed into an eco-tourism site, according to the SMC website.
Retired Energy Undersecretary Ramon Allan Oca, who has extensive knowledge of the SMC operations, said the company had met international environmental, safety and quality standards.
He said the operations and environmental impact were regularly being evaluated by the Multipartite Monitoring Team (MMT). The MMT, composed of representatives of SMC, the DENR and the community, is tasked to ensure that regulations and conditions of the environmental compliance certificate are followed.
Since mining operations started in Semirara in 1977, Domingo has seen the island become one of Asia’s biggest coal mines. Semirara is among a group of nine islands comprising Caluya town in Antique. Semirara is composed of three villages (Semirara, Tinogboc and Alegria).
SMC, owned by DMCI Holdings Inc., is the country’s biggest domestic producer of coal, accounting for 7,570,003 metric tons of the total 7,842,409 MT produced locally in 2013, according to data from the coal division of the DOE.
SMC took over the then government-owned Semirara Coal Corp. in 1999. In 2011, it posted a P6-billion profit.
The company employs some 2,800 employees with about 4,000 people relying on its operations for livelihood.
Mining is the biggest source of income of Semirara village, which hosts SMC’s Panian mining pit, and Caluya municipality.
The internal revenue allotment of Semirara village reached P225 million in 2012 while Caluya municipality had a royalty share of P290 million.
But Domingo said the island and the people were paying a high price.
Despite massive earnings from coal production, the lives of people especially in Tinogboc and Alegria have not significantly improved, he said.
He cited unpaved roads, lack of infrastructure, absence of a hospital with adequate personnel and facilities, and the absence of a decent pier.
Provincial Board Member Errol Santillan admitted at the forum that even he, a provincial official, does not have adequate information about the situation on the island.
“The island is too far from the provincial center, and we hardly get any information. We were not even consulted on the [DOE’s] approval to extend and expand the operations of SMC,” he said.
In 2008, the DOE extended SMC’s coal operating contract (COC) by another 15 years or up to 2027. The original
35-year COC was supposed to expire in 2012.
The COC gives exclusive right to SMC to explore, develop and mine for coal on Semirara Island.
The DOE in 2009 also expanded the coverage of the COC from the original 5,500 ha in Semirara to 12,700 ha, including 3,000 ha in Caluya, the main island, and 4,200 ha on Sibay Island.
Santillan urged the DENR to study possibilities of declaring other areas in Caluya and Antique as environmentally protected areas and off limits to mining exploration and extraction, citing the rich and diverse marine resources on the island.
“If we cannot stop the existing mining operations, let us limit them, especially in areas where people are relying on marine resources for their livelihood,” he told the Inquirer. source
Byline By: Nestor P. Burgos Jr.
Inquirer Visayas
12:41 AM July 26th, 2014
Danilo Domingo, 58, has been living all his life in Barangay Tinogboc on Semirara Island. Now, he fears for the future of his children and their island.
“Our mangroves, sea grass and other marine resources are fast diminishing. There might be nothing left when the mining ends,” he told the Inquirer.
In a forum on the impact of mining operations on Antique province, Domingo and other Semirara residents pleaded for assistance from government agencies and environmental advocates to help them cope with the effects of coal mining on their island’s marine resources and the alleged dislocation of residents.
“Government agencies should strictly monitor and ensure the implementation of environmental rules and regulations,” said Domingo, head of Bolo Fisherfolk Farmers Association.
He cited a study conducted by researchers tapped by Pambansang Kilusan ng mga Samahang Magsasaka showing that 31 of the 35 mangrove species in the country are existing on Semirara Island.
But the study, based on satellite images using Google Earth’s time slider, showed that mangrove areas on the island dropped from 427.92 hectares in 2009 to 344 ha in 2014 or a decrease of 83.92 ha.
“Many mangrove areas have been filled in,”Domingo said.
The forum, jointly organized by nongovernment organizations with the support of the British Embassy in Manila, was attended by representatives of the Commission on Human Rights, the Department of Environment and Natural Resources (DENR) and the Department of Energy (DOE).
The municipal government of Caluya, Semirara Mining Corp. (SMC) and the office of Antique Gov. Exequiel Javier did not send representatives to attend the forum despite being invited by the organizers.
The Inquirer repeatedly called and sent text messages to Juniper Barroquillo, SMC administrative officer, but he did not respond.
For two weeks, the Inquirer also tried to reach lawyer John Sadullo, SMC vice president for legal affairs, but he was either out of his office or on sick leave. His office did not return calls nor sent a statement despite repeated requests.
But the company has in the past repeatedly denied allegations of environmental violations causing pollution on the island.
On its website, SMC said its reforestation team had planted
1.2 million trees on the island from 2000 to 2012. It had planted mangroves on a 172-hectare area by 2012.
The abandoned and barren Unong mine is being rehabilitated and planted with trees to stabilize the soil. The mine pit that is now filled with water hosts eels, tilapia and other fish and is being developed into an eco-tourism site, according to the SMC website.
Retired Energy Undersecretary Ramon Allan Oca, who has extensive knowledge of the SMC operations, said the company had met international environmental, safety and quality standards.
He said the operations and environmental impact were regularly being evaluated by the Multipartite Monitoring Team (MMT). The MMT, composed of representatives of SMC, the DENR and the community, is tasked to ensure that regulations and conditions of the environmental compliance certificate are followed.
Since mining operations started in Semirara in 1977, Domingo has seen the island become one of Asia’s biggest coal mines. Semirara is among a group of nine islands comprising Caluya town in Antique. Semirara is composed of three villages (Semirara, Tinogboc and Alegria).
SMC, owned by DMCI Holdings Inc., is the country’s biggest domestic producer of coal, accounting for 7,570,003 metric tons of the total 7,842,409 MT produced locally in 2013, according to data from the coal division of the DOE.
SMC took over the then government-owned Semirara Coal Corp. in 1999. In 2011, it posted a P6-billion profit.
The company employs some 2,800 employees with about 4,000 people relying on its operations for livelihood.
Mining is the biggest source of income of Semirara village, which hosts SMC’s Panian mining pit, and Caluya municipality.
The internal revenue allotment of Semirara village reached P225 million in 2012 while Caluya municipality had a royalty share of P290 million.
But Domingo said the island and the people were paying a high price.
Despite massive earnings from coal production, the lives of people especially in Tinogboc and Alegria have not significantly improved, he said.
He cited unpaved roads, lack of infrastructure, absence of a hospital with adequate personnel and facilities, and the absence of a decent pier.
Provincial Board Member Errol Santillan admitted at the forum that even he, a provincial official, does not have adequate information about the situation on the island.
“The island is too far from the provincial center, and we hardly get any information. We were not even consulted on the [DOE’s] approval to extend and expand the operations of SMC,” he said.
In 2008, the DOE extended SMC’s coal operating contract (COC) by another 15 years or up to 2027. The original
35-year COC was supposed to expire in 2012.
The COC gives exclusive right to SMC to explore, develop and mine for coal on Semirara Island.
The DOE in 2009 also expanded the coverage of the COC from the original 5,500 ha in Semirara to 12,700 ha, including 3,000 ha in Caluya, the main island, and 4,200 ha on Sibay Island.
Santillan urged the DENR to study possibilities of declaring other areas in Caluya and Antique as environmentally protected areas and off limits to mining exploration and extraction, citing the rich and diverse marine resources on the island.
“If we cannot stop the existing mining operations, let us limit them, especially in areas where people are relying on marine resources for their livelihood,” he told the Inquirer. source
Friday, July 25, 2014
Proposed underground electric wires will raise power rates – DOE
Manila Times
July 25, 2014 9:17 pm
by Ritchie A. Horario
The Department of Energy (DOE) is seriously studying proposals to bury underground electricity cables to prevent power outages during typhoons, but warned this would also likely cause an increase in power rates.
Energy Secretary Carlos Jericho Petilla said the proposal should be carefully studied because it will impose additional costs to electric distributors, who would subsequently be forced to pass those costs on to consumers.
Petilla issued the statement after the Manila Electric Co. (Meralco) said it is “seriously” considering putting electric wires underground after the damage inflicted by Typhoon Glenda caused widespread power outages.
The power outages that hit Metro Manila and nearby provinces were attributed to damaged electric wires and utility posts downed by the typhoon.
Meralco Chairman Manuel V. Pangilinan said power outages are just a usual scenario during calamities since Meralco’s power distribution lines are still overhead.
The DOE chief said that even after Super Typhoon Yolanda, the agency had considered putting electric wires underground.
Nearly all of the electric posts and wires were downed in areas affected by Yolanda, which resulted in extended blackouts in many parts of the Visayas.
Although the proposal is valid and reasonable, Petilla said it should be studied very carefully as several things should be first considered, such as the installation cost.
He said the cost of putting electricity wires underground is at least five times higher than conventional overhead installation, and the added costs will be charged to the consumers.
“It actually costs like concreting roads, because with the installation [of underground power lines] you have things such as anti-flooding systems and pump systems, which are expensive and they are more difficult to maintain,” he added.
However, Petilla said since the county is vulnerable to calamities as it is being visited by more typhoons every year, it is a must to seriously consider the proposal.
“That is what we are studying right now, the cost implication of the proposal,” he added. source
July 25, 2014 9:17 pm
by Ritchie A. Horario
The Department of Energy (DOE) is seriously studying proposals to bury underground electricity cables to prevent power outages during typhoons, but warned this would also likely cause an increase in power rates.
Energy Secretary Carlos Jericho Petilla said the proposal should be carefully studied because it will impose additional costs to electric distributors, who would subsequently be forced to pass those costs on to consumers.
Petilla issued the statement after the Manila Electric Co. (Meralco) said it is “seriously” considering putting electric wires underground after the damage inflicted by Typhoon Glenda caused widespread power outages.
The power outages that hit Metro Manila and nearby provinces were attributed to damaged electric wires and utility posts downed by the typhoon.
Meralco Chairman Manuel V. Pangilinan said power outages are just a usual scenario during calamities since Meralco’s power distribution lines are still overhead.
The DOE chief said that even after Super Typhoon Yolanda, the agency had considered putting electric wires underground.
Nearly all of the electric posts and wires were downed in areas affected by Yolanda, which resulted in extended blackouts in many parts of the Visayas.
Although the proposal is valid and reasonable, Petilla said it should be studied very carefully as several things should be first considered, such as the installation cost.
He said the cost of putting electricity wires underground is at least five times higher than conventional overhead installation, and the added costs will be charged to the consumers.
“It actually costs like concreting roads, because with the installation [of underground power lines] you have things such as anti-flooding systems and pump systems, which are expensive and they are more difficult to maintain,” he added.
However, Petilla said since the county is vulnerable to calamities as it is being visited by more typhoons every year, it is a must to seriously consider the proposal.
“That is what we are studying right now, the cost implication of the proposal,” he added. source
Thursday, July 24, 2014
Construction at Aboitiz’s 300-MW plant on time
Business World Online
Posted on July 24, 2014 10:58:07 PM
DAVAO CITY -- Aboitiz Power Corp., the proponent of the 300-megawatt (MW) coal-fired power plant being built within the boundary of the city and Davao del Sur, said it is on track with its construction schedule and is confident that the project will be added to the Mindanao grid by the first half of 2015.
The Department of Energy reported that the company, as of May 31, accomplished 78% of the work and has contracted 240 MW of its output.
Based on the company’s expenditure report posted on its Web site, about P23.6 billion has been spent out of the P31.1 billion budget for the project.
One plant with an output of 150 MW will go online in the first quarter of next year while the other plant with the same output will be added to the grid by the second quarter.
“We are fully committed in delivering our power to our customers on time and help relieve Mindanaoans of the debilitating effects of the Mindanao power crisis,” said Manuel M. Orig, Aboitiz Power first vice president for Mindanao, in an earlier press statement.
The city government has also given the go signal to the Aboitiz group to expand the power complex’s output by another 345 MW.
Aboitiz subsidiary Therma South Inc. will be running the plant.
Without the expansion, based on company estimates, Mindanao would be short of power supply by about 240 MW by 2018. Based on data from government agencies, the region’s power requirement is growing by an annual 6%.
Under the expansion plan, another plant with a 172.5-MW capacity will be built. Aboitiz estimates the cost at P15 billion. -- Carmelito Q. Francisco source
Posted on July 24, 2014 10:58:07 PM
DAVAO CITY -- Aboitiz Power Corp., the proponent of the 300-megawatt (MW) coal-fired power plant being built within the boundary of the city and Davao del Sur, said it is on track with its construction schedule and is confident that the project will be added to the Mindanao grid by the first half of 2015.
The Department of Energy reported that the company, as of May 31, accomplished 78% of the work and has contracted 240 MW of its output.
Based on the company’s expenditure report posted on its Web site, about P23.6 billion has been spent out of the P31.1 billion budget for the project.
One plant with an output of 150 MW will go online in the first quarter of next year while the other plant with the same output will be added to the grid by the second quarter.
“We are fully committed in delivering our power to our customers on time and help relieve Mindanaoans of the debilitating effects of the Mindanao power crisis,” said Manuel M. Orig, Aboitiz Power first vice president for Mindanao, in an earlier press statement.
The city government has also given the go signal to the Aboitiz group to expand the power complex’s output by another 345 MW.
Aboitiz subsidiary Therma South Inc. will be running the plant.
Without the expansion, based on company estimates, Mindanao would be short of power supply by about 240 MW by 2018. Based on data from government agencies, the region’s power requirement is growing by an annual 6%.
Under the expansion plan, another plant with a 172.5-MW capacity will be built. Aboitiz estimates the cost at P15 billion. -- Carmelito Q. Francisco source
Wednesday, July 23, 2014
Special zones for power plants pushed
By TJ Burgonio
Philippine Daily Inquirer
9:01 am | Wednesday, July 23rd, 2014
MANILA, Philippines–To deal with a potential power crisis, President Aquino should be given the power to set up special zones for power plants, and not emergency powers, Sen. Sergio Osmeña III has said.
Given that power plants take at least four years to build, Osmeña said that the President should be granted powers to order the immediate construction of such plants, free from any legal obstacles.
“There is one power that I am curious if it would be reasonable and constitutional: the power for the President to declare special zones immediately for the construction of power plants,’’ Osmeña told reporters Monday afternoon.
With such power, he added the President could issue the order: “Within three months, start the power plant.’’
The senator, who chairs the energy committee, said the construction of power plants has often been delayed by petitions for writ of kalikasan and lengthy processing of local and national government permits.
Energy Secretary Jericho Petilla has talked the President into declaring a state of emergency in view of a power supply problem in the first quarter of 2015.
Citing the energy outlook for Luzon in 2014-2016, Petilla said that contingency reserves would run below the minimum level set by regulators in the middle of March next year.
Petilla predicted a deficit of 400 to 500 Mw at the peak of the demand for power at 9,017 Mw next year.
‘Invoke Section 71’
In view of this, Petilla asked Aquino to invoke Section 71 of the Electric Power Industry Reform Act (Epira), which has authorized the President to ask Congress for authority to establish additional generating capacity upon the determination of an imminent shortage of power supply.
The President has yet to act on Petilla’s proposal.
Osmeña wondered what kind of emergency powers that Petilla wanted the President to obtain from Congress. Otherwise, he said such emergency powers were unnecessary.
“What type of emergency powers does he propose the president obtain from Congress? You can’t build a power plant in less than three and a half years, unless you bring in generators, power barges,’’ he said. “What powers do you want now?’’
“But as I said, it’s not necessary. They should keep on developing,’’ he added.
Sen. Antonio Trillanes IV, for his part, agreed with Petilla’s proposal.
Trillanes has filed a bill prescribing urgent measures to address the electric power crisis, such as authorizing the President to enter into negotiated contracts for the construction, repair and maintenance of power plants, and to compel independent power producers to supply power to distribution utilities, among others.
“These are not emergency powers to declare martial law, but emergency powers to give the President some flexibility in using the resources of government,” he told reporters Monday afternoon. source
Philippine Daily Inquirer
9:01 am | Wednesday, July 23rd, 2014
MANILA, Philippines–To deal with a potential power crisis, President Aquino should be given the power to set up special zones for power plants, and not emergency powers, Sen. Sergio Osmeña III has said.
Given that power plants take at least four years to build, Osmeña said that the President should be granted powers to order the immediate construction of such plants, free from any legal obstacles.
“There is one power that I am curious if it would be reasonable and constitutional: the power for the President to declare special zones immediately for the construction of power plants,’’ Osmeña told reporters Monday afternoon.
With such power, he added the President could issue the order: “Within three months, start the power plant.’’
The senator, who chairs the energy committee, said the construction of power plants has often been delayed by petitions for writ of kalikasan and lengthy processing of local and national government permits.
Energy Secretary Jericho Petilla has talked the President into declaring a state of emergency in view of a power supply problem in the first quarter of 2015.
Citing the energy outlook for Luzon in 2014-2016, Petilla said that contingency reserves would run below the minimum level set by regulators in the middle of March next year.
Petilla predicted a deficit of 400 to 500 Mw at the peak of the demand for power at 9,017 Mw next year.
‘Invoke Section 71’
In view of this, Petilla asked Aquino to invoke Section 71 of the Electric Power Industry Reform Act (Epira), which has authorized the President to ask Congress for authority to establish additional generating capacity upon the determination of an imminent shortage of power supply.
The President has yet to act on Petilla’s proposal.
Osmeña wondered what kind of emergency powers that Petilla wanted the President to obtain from Congress. Otherwise, he said such emergency powers were unnecessary.
“What type of emergency powers does he propose the president obtain from Congress? You can’t build a power plant in less than three and a half years, unless you bring in generators, power barges,’’ he said. “What powers do you want now?’’
“But as I said, it’s not necessary. They should keep on developing,’’ he added.
Sen. Antonio Trillanes IV, for his part, agreed with Petilla’s proposal.
Trillanes has filed a bill prescribing urgent measures to address the electric power crisis, such as authorizing the President to enter into negotiated contracts for the construction, repair and maintenance of power plants, and to compel independent power producers to supply power to distribution utilities, among others.
“These are not emergency powers to declare martial law, but emergency powers to give the President some flexibility in using the resources of government,” he told reporters Monday afternoon. source
Odd man out
HIDDEN AGENDA By Mary Ann Ll. Reyes (The Philippine Star)
Updated July 23, 2014 - 12:00am
Power industry leaders are giving the thumbs up to government’s creation of a multisectoral task force to study ways to reduce the price of electricity.
Energy Secretary Carlos Jericho Petilla’s mandate for this task force is to “evaluate current breakdown/components of electricity and identify factors affecting them, conduct multisectoral public consultations nationwide to present their findings; and identify ways and measures to help reduce the price of electricity and ensure its efficiency.”
The creation of the task force was an offshoot of the May 31, 2013 dialogue in Malacañang in which “labor groups proposed the creation of a dedicated group, which will include the labor sector and consumers groups representatives, to monitor, discuss and resolve issues affecting the power supply and affordability of electricity in the country.”
In light of the very important role of this group, it goes without saying that its members should be those who truly represent our interest.
Some groups are questioning the naming of Philippine Independent Power Producers Association (PIPPA) former president David Relito Tan, who after his messy legal battles here and abroad, managed to recycle himself as a self-styled industry “expert” at the height of last semester’s power crisis by blaming certain industry players for the electricity mess, on the basis of his alleged biased and distorted facts about the Philippine power situation.
The multisectoral task force will be headed by Dr. Adoracion Navarro, a senior fellow at the Philippine Institute for Development Studies (PIDS) who is on the Devex list of 40 global development leaders in Metro Manila under 40 years of age. She will be represented in the task force by PIDS president Gilberto Llanto.
Other members include Secretary Petilla, businessman Raul Concepcion of Gov’t Watch; and representatives from the Joint Foreign Chambers (JFC), Philippine Chamber of Commerce and Industry (PCCI), Federation of Filipino Chinese Chamber of Commerce and Industry (FFCCCI), PIPPA, Manila Electric Co. (Meralco), National Consumers Affairs Council (NCAC), National Federation of Women’s Club of the Philippines (NFWCP), Coalition for Consumer Protection and Welfare Inc. (CCPW), Matuwid na Singil sa Kuryente Consumer Alliance Inc. (MSKCA), Alliance of Progressive Labor (APL) and NAGKAISA (United).
But industry watchers are raising their eyebrows as to why MSK is one of five consumer groups in this task force, given its questionable status as a functioning NGO.
Tan is a task force member in his capacity as MSK president. While Tan was at one time PIPPA president and is thus supposedly knowledgeable about the complex energy sector, since then, he has been hounded by complaints or cases.
According to SEC records, two of MSK’a key officers—corporate secretary Lorna Asilo and treasurer Videt Ursula Cusi—both certified under oath that this NGO “has not been in operation since its incorporation in 2011 up to the present,”
So why has Tan been blessed to be in the company of distinguished industry leaders in the task force when he is representing a fledgling consumer group that is actually dormant, as attested to by its own key officers?
And how about Tan’s record as an energy executive?
On June 17, 2010, the Court of Appeals ordered Tan and his Power One Group of Companies (formerly Edison Industries Inc.) to pay retrenched workers who earlier filed an illegal dismissal case against Tan’s firm before the NLRC.
There is also a case at the Supreme Court filed by Mid-Islands Power Corp. against Power One and Tan over their power supply accord; as well as another one at the ERC pertaining to Power One’s deal with the Oriental Mindoro Electric Cooperatve Inc. (ORMECO).
There is another for “fraudulent intent” which Philippine National Bank (PNB) filed against Tan and Edison-Hubbard Corp. in the San Francisco Superior Court involving a $7 million unsettled bank loan. The court ruled that debtor intended to defraud his creditors and/or the trustee.
There had also been criticisms about Tan’s commentaries regarding last December’s electricity price shock, since they ignored ERC’s March 3 order to WESM operator Philippine Electricity Market Corp. (PEMC) to re-run or recompute the spot market rates during the Malampaya shutdown on the belief that the prices then were unreasonable and irrational as a result of “market abuse.”
With Petilla’s directive for task force members to undertake “complete dissemination of all discussions and agreements during the conduct of dialogues,” there are now apprehensions that Tan, given his bias against certain major power industry players, might turn these nationwide consultations into mere launching pads for his attacks on his pet peeves in the power sector.
Global mess
It looks like not all is well within the ranks of the powerful European pressure group Greenpeace.
While European pressure group Greenpeace is waging its war against Filipino scientists here, it looks like there’s war within its own posh headquarters in Europe.
Greenpeace has gone all out in the last two decades to prevent the local science community led by UP Los Banos from introducing to Filipino farmers certain crop varieties that do not require chemical pesticides to ward off pests.
In fact, it is engaged in legal battle before the Supreme Court (SC) as it attempts to stifle a bid by Filipino scientists and farmers to get a go-signal from the High Court for the resumption of field trials for the pesticide-free eggplant variety called Bt Talong.
Back home in Europe, Greenpeace’s office has been rocked by conflict following major discontent aired by its senior executives. The row was fueled by reports that Greenpeace executive Pascal Hustings flies between the group’s Amsterdam office and his home in the wealthy state of Luxembourg several times a month. This will obviously worry Greenpeace’s donors.
Another proof of Greenpeace’s huge money chest is the major financial loss it reportedly suffered after its finance officer bet wrongly on the weak Eurodollar, resulting in losses amounting to some three million pounds sterling.
Greenpeace has so much money that it engages in foreign exchange market and corporate stocks speculation, while giving us the image of volunteers fighting to save the whale.
If the media reports are true, then Greenpeace’s strength may have also become its debacle. It is now suffering from the problems that many do-good organizations which end up amassing money, have.
Despite these debacles besetting its swank Amsterdam headquarters, Greenpeace’s money remains the biggest threat to our local science community.
That huge financial arsenal will continue to stand in the way of biotechnology research. That arsenal will continue to finance public relations and activist operations, as well as expensive legal suits.
That’s bad news for our scientists and farmers. source
For comments, email at philstarhiddenagenda@yahoo.com
Updated July 23, 2014 - 12:00am
Power industry leaders are giving the thumbs up to government’s creation of a multisectoral task force to study ways to reduce the price of electricity.
Energy Secretary Carlos Jericho Petilla’s mandate for this task force is to “evaluate current breakdown/components of electricity and identify factors affecting them, conduct multisectoral public consultations nationwide to present their findings; and identify ways and measures to help reduce the price of electricity and ensure its efficiency.”
The creation of the task force was an offshoot of the May 31, 2013 dialogue in Malacañang in which “labor groups proposed the creation of a dedicated group, which will include the labor sector and consumers groups representatives, to monitor, discuss and resolve issues affecting the power supply and affordability of electricity in the country.”
In light of the very important role of this group, it goes without saying that its members should be those who truly represent our interest.
Some groups are questioning the naming of Philippine Independent Power Producers Association (PIPPA) former president David Relito Tan, who after his messy legal battles here and abroad, managed to recycle himself as a self-styled industry “expert” at the height of last semester’s power crisis by blaming certain industry players for the electricity mess, on the basis of his alleged biased and distorted facts about the Philippine power situation.
The multisectoral task force will be headed by Dr. Adoracion Navarro, a senior fellow at the Philippine Institute for Development Studies (PIDS) who is on the Devex list of 40 global development leaders in Metro Manila under 40 years of age. She will be represented in the task force by PIDS president Gilberto Llanto.
Other members include Secretary Petilla, businessman Raul Concepcion of Gov’t Watch; and representatives from the Joint Foreign Chambers (JFC), Philippine Chamber of Commerce and Industry (PCCI), Federation of Filipino Chinese Chamber of Commerce and Industry (FFCCCI), PIPPA, Manila Electric Co. (Meralco), National Consumers Affairs Council (NCAC), National Federation of Women’s Club of the Philippines (NFWCP), Coalition for Consumer Protection and Welfare Inc. (CCPW), Matuwid na Singil sa Kuryente Consumer Alliance Inc. (MSKCA), Alliance of Progressive Labor (APL) and NAGKAISA (United).
But industry watchers are raising their eyebrows as to why MSK is one of five consumer groups in this task force, given its questionable status as a functioning NGO.
Tan is a task force member in his capacity as MSK president. While Tan was at one time PIPPA president and is thus supposedly knowledgeable about the complex energy sector, since then, he has been hounded by complaints or cases.
According to SEC records, two of MSK’a key officers—corporate secretary Lorna Asilo and treasurer Videt Ursula Cusi—both certified under oath that this NGO “has not been in operation since its incorporation in 2011 up to the present,”
So why has Tan been blessed to be in the company of distinguished industry leaders in the task force when he is representing a fledgling consumer group that is actually dormant, as attested to by its own key officers?
And how about Tan’s record as an energy executive?
On June 17, 2010, the Court of Appeals ordered Tan and his Power One Group of Companies (formerly Edison Industries Inc.) to pay retrenched workers who earlier filed an illegal dismissal case against Tan’s firm before the NLRC.
There is also a case at the Supreme Court filed by Mid-Islands Power Corp. against Power One and Tan over their power supply accord; as well as another one at the ERC pertaining to Power One’s deal with the Oriental Mindoro Electric Cooperatve Inc. (ORMECO).
There is another for “fraudulent intent” which Philippine National Bank (PNB) filed against Tan and Edison-Hubbard Corp. in the San Francisco Superior Court involving a $7 million unsettled bank loan. The court ruled that debtor intended to defraud his creditors and/or the trustee.
There had also been criticisms about Tan’s commentaries regarding last December’s electricity price shock, since they ignored ERC’s March 3 order to WESM operator Philippine Electricity Market Corp. (PEMC) to re-run or recompute the spot market rates during the Malampaya shutdown on the belief that the prices then were unreasonable and irrational as a result of “market abuse.”
With Petilla’s directive for task force members to undertake “complete dissemination of all discussions and agreements during the conduct of dialogues,” there are now apprehensions that Tan, given his bias against certain major power industry players, might turn these nationwide consultations into mere launching pads for his attacks on his pet peeves in the power sector.
Global mess
It looks like not all is well within the ranks of the powerful European pressure group Greenpeace.
While European pressure group Greenpeace is waging its war against Filipino scientists here, it looks like there’s war within its own posh headquarters in Europe.
Greenpeace has gone all out in the last two decades to prevent the local science community led by UP Los Banos from introducing to Filipino farmers certain crop varieties that do not require chemical pesticides to ward off pests.
In fact, it is engaged in legal battle before the Supreme Court (SC) as it attempts to stifle a bid by Filipino scientists and farmers to get a go-signal from the High Court for the resumption of field trials for the pesticide-free eggplant variety called Bt Talong.
Back home in Europe, Greenpeace’s office has been rocked by conflict following major discontent aired by its senior executives. The row was fueled by reports that Greenpeace executive Pascal Hustings flies between the group’s Amsterdam office and his home in the wealthy state of Luxembourg several times a month. This will obviously worry Greenpeace’s donors.
Another proof of Greenpeace’s huge money chest is the major financial loss it reportedly suffered after its finance officer bet wrongly on the weak Eurodollar, resulting in losses amounting to some three million pounds sterling.
Greenpeace has so much money that it engages in foreign exchange market and corporate stocks speculation, while giving us the image of volunteers fighting to save the whale.
If the media reports are true, then Greenpeace’s strength may have also become its debacle. It is now suffering from the problems that many do-good organizations which end up amassing money, have.
Despite these debacles besetting its swank Amsterdam headquarters, Greenpeace’s money remains the biggest threat to our local science community.
That huge financial arsenal will continue to stand in the way of biotechnology research. That arsenal will continue to finance public relations and activist operations, as well as expensive legal suits.
That’s bad news for our scientists and farmers. source
For comments, email at philstarhiddenagenda@yahoo.com
House divided on move to grant Aquino emergency powers for power shortage
Manila Bulletin
July 23, 2014
The Department of Energy’s (DOE) proposal to grant emergency powers to President Aquino to address the looming power crisis appeared to have divided the House of Representatives yesterday.
Lawmakers crossed party lines in either rejecting or supporting the possible granting of emergency powers to the Chief Executive to address the power problem after Energy Secretary Jericho Petilla recommended to President Aquino the declaration of an emergency situation on the country’s power supply.
500 MW POWER SHORTAGE
The DOE anticipates a supply shortage of around 500 megawatts in the Luzon and Visayas grids during the hot months of April and May before new electricity-generation plants come on stream in the second half of next year, Presidential Communications Operations Secretary Herminio Coloma Jr. said yesterday.
Petilla has asked President Aquino to invoke a provision in the Electric Power Industry Reform Act (EPIRA) that allows the government to quickly bring in additional power-generation capacity, side-stepping some requirements such as public bidding.
The EPIRA leaves to the private sector the primary responsibility of building power plants, and only allows the government to step in if the Philippine President declares “an imminent shortage of (electricity) supply” and the Senate and the House of Representatives concur via a joint resolution.
Speaker Feliciano Belmonte Jr. said the “overdue proposal of Petilla will be backed by the Lower Chamber once they get the green light from the President. He said President Aquino should directly ask Congress if he wants emergency powers.
“Petilla’s statement is overdue. Everybody has said it before he did. Yes, we will support if requested by the President. He should also specify what kind of emergency powers,” he said.
LIMITED POWER
Eastern Samar Rep. Ben Evardone, who authored House Bill 3743 which grants President Aquino one-year emergency powers to construct new government-owned power plants and suspend the imposition of value-added tax (VAT) on electricity, expressed full support to Petilla’s proposal to address the looming power crisis.
“The fear of several quarters that it might be abused is totally unfounded. The emergency powers will be limited to addressing the acute power supply shortfall only. I hope Congress will prioritize my HB 3743 empowering the President to construct power plants,” he said.
1-BAP party-list Rep. Silvestre Bello, former justice secretary, agreed with Evardone, saying that “the energy problem has reached a crisis level and has to be addressed with emergency measures.”
Reps. Rodolfo Albano III (NUP, Isabela) and Sherwin Gatchalian (NPC, Valenzuela City) backed Petilla’s call, saying it would give the government more leeway to ably respond to the shortage.
Gatchalian said the grant of emergency powers to the President will give him the authority to swiftly enter into deals to put up modular power plants from Dubai and the United States within just four to five months.
‘PREMATURE’
Mindoro Oriental Rep. Reynaldo Umali, a partymate of Aquino in the Liberal Party, described the move as “premature” and still lacking basis.
Umali stressed the need to first determine the seriousness of the allegedly impending power shortage before any legislative action may be taken giving Aquino more power to address the problem.
“We will always be supportive, but we need to satisfy first the requirements of the law, particularly the need to determine whether a crisis exists and the parameters for the grant of emergency powers.”
Akbayan party-list Rep. Walden Bello insisted that “what the administration needs is political will, not emergency powers.”
Kabataan Partylist Rep. Terry Ridon cited Aquino’s alleged “tyrannical tendencies” in calling for a rejection of the proposal.
Ridon said Congress should not entertain suggestions that Aquino be granted emergency powers to deal with the energy shortage problem that has gripped a wide area following the onslaught of typhoon “Glenda”
Quezon City Rep. Winnie Castelo cautioned Congress against immediately giving in to the proposal, saying that Malacañang should prove that there is really a need to grant emergency powers to the President.
“This is something Congress will have to consider with caution. The Executive Department will have to explain and justify to Congress the urgency of the emerging situation. I am sure Secretary Petilla will be called to explain,” he said.
“At the moment, the EPIRA law will have to be revisited. Noting the high cost of electricity and the emerging power crisis, it appears that it has not been responsive,” he pointed out.
Magdalo party-list Rep. Francisco Ashley Acedillo said, “Before I vote in favor of it, I want Secretary Petilla to tell Congress if DOE under his watch and under PNoy has done absolutely everything possible to avert the looming energy crisis. A lesson in history must be learned during the period 1997 to 1998 when former President Fidel V. Ramos resorted to emergency powers to solve the 10 to 12-hour rotating brown outs,” he said. (Charissa M. Luci, Ben R. Rosario, and Dow Jones) source
July 23, 2014
The Department of Energy’s (DOE) proposal to grant emergency powers to President Aquino to address the looming power crisis appeared to have divided the House of Representatives yesterday.
Lawmakers crossed party lines in either rejecting or supporting the possible granting of emergency powers to the Chief Executive to address the power problem after Energy Secretary Jericho Petilla recommended to President Aquino the declaration of an emergency situation on the country’s power supply.
500 MW POWER SHORTAGE
The DOE anticipates a supply shortage of around 500 megawatts in the Luzon and Visayas grids during the hot months of April and May before new electricity-generation plants come on stream in the second half of next year, Presidential Communications Operations Secretary Herminio Coloma Jr. said yesterday.
Petilla has asked President Aquino to invoke a provision in the Electric Power Industry Reform Act (EPIRA) that allows the government to quickly bring in additional power-generation capacity, side-stepping some requirements such as public bidding.
The EPIRA leaves to the private sector the primary responsibility of building power plants, and only allows the government to step in if the Philippine President declares “an imminent shortage of (electricity) supply” and the Senate and the House of Representatives concur via a joint resolution.
Speaker Feliciano Belmonte Jr. said the “overdue proposal of Petilla will be backed by the Lower Chamber once they get the green light from the President. He said President Aquino should directly ask Congress if he wants emergency powers.
“Petilla’s statement is overdue. Everybody has said it before he did. Yes, we will support if requested by the President. He should also specify what kind of emergency powers,” he said.
LIMITED POWER
Eastern Samar Rep. Ben Evardone, who authored House Bill 3743 which grants President Aquino one-year emergency powers to construct new government-owned power plants and suspend the imposition of value-added tax (VAT) on electricity, expressed full support to Petilla’s proposal to address the looming power crisis.
“The fear of several quarters that it might be abused is totally unfounded. The emergency powers will be limited to addressing the acute power supply shortfall only. I hope Congress will prioritize my HB 3743 empowering the President to construct power plants,” he said.
1-BAP party-list Rep. Silvestre Bello, former justice secretary, agreed with Evardone, saying that “the energy problem has reached a crisis level and has to be addressed with emergency measures.”
Reps. Rodolfo Albano III (NUP, Isabela) and Sherwin Gatchalian (NPC, Valenzuela City) backed Petilla’s call, saying it would give the government more leeway to ably respond to the shortage.
Gatchalian said the grant of emergency powers to the President will give him the authority to swiftly enter into deals to put up modular power plants from Dubai and the United States within just four to five months.
‘PREMATURE’
Mindoro Oriental Rep. Reynaldo Umali, a partymate of Aquino in the Liberal Party, described the move as “premature” and still lacking basis.
Umali stressed the need to first determine the seriousness of the allegedly impending power shortage before any legislative action may be taken giving Aquino more power to address the problem.
“We will always be supportive, but we need to satisfy first the requirements of the law, particularly the need to determine whether a crisis exists and the parameters for the grant of emergency powers.”
Akbayan party-list Rep. Walden Bello insisted that “what the administration needs is political will, not emergency powers.”
Kabataan Partylist Rep. Terry Ridon cited Aquino’s alleged “tyrannical tendencies” in calling for a rejection of the proposal.
Ridon said Congress should not entertain suggestions that Aquino be granted emergency powers to deal with the energy shortage problem that has gripped a wide area following the onslaught of typhoon “Glenda”
Quezon City Rep. Winnie Castelo cautioned Congress against immediately giving in to the proposal, saying that Malacañang should prove that there is really a need to grant emergency powers to the President.
“This is something Congress will have to consider with caution. The Executive Department will have to explain and justify to Congress the urgency of the emerging situation. I am sure Secretary Petilla will be called to explain,” he said.
“At the moment, the EPIRA law will have to be revisited. Noting the high cost of electricity and the emerging power crisis, it appears that it has not been responsive,” he pointed out.
Magdalo party-list Rep. Francisco Ashley Acedillo said, “Before I vote in favor of it, I want Secretary Petilla to tell Congress if DOE under his watch and under PNoy has done absolutely everything possible to avert the looming energy crisis. A lesson in history must be learned during the period 1997 to 1998 when former President Fidel V. Ramos resorted to emergency powers to solve the 10 to 12-hour rotating brown outs,” he said. (Charissa M. Luci, Ben R. Rosario, and Dow Jones) source
EDC gets ISO certification
(The Philippine Star) | Updated July 23, 2014 - 12:00am
MANILA, Philippines - Energy Development Corp. (EDC) received recently its ISO 9001: 2008 certifications from TUV Rheinland Cert GmbH.
EDC earned the certification after meeting performance standards in resource management in all its operating fields and the head office.
EDC is the country’s largest geothermal energy producer and world leader in wet-steam technology.
“We are proud to have received this recognition from the foremost international standard-setting body,” Manny Ogena, EDC head of geosciences and reservoir engineering, said.
“This certification further strengthens our commitment to adhere to our company’s quality policy to deliver accurate, cost effective, reliable and timely technical services that will ultimately help EDC achieve its goal of providing clean and renewable geothermal energy to the country,” he added.
The certification process took over a year. TUV issued the certification after its thorough review of the EDC processes and practices.
EDC’s performance in personnel safety, equipment calibration, maintenance planning, and following best industry practices were key in qualifying for the certification.
The certificates are valid from June 26, 2014 up to June 25, 2017.
Ogena said “the ISO 9001:2008 certification further validates the effectiveness of the processes and systems we have in place, while giving us a tangible motivation for constant improvement.
It also gives us greater confidence as we continue to break new ground as an international geothermal power developer.”
EDC has geothermal power sites located in the Bicol Region, Leyte, Negros island and in Kidapawan, Mindanao.
In recent years, EDC has been awarded geothermal concessions in Chile and Peru in Latin America. source
MANILA, Philippines - Energy Development Corp. (EDC) received recently its ISO 9001: 2008 certifications from TUV Rheinland Cert GmbH.
EDC earned the certification after meeting performance standards in resource management in all its operating fields and the head office.
EDC is the country’s largest geothermal energy producer and world leader in wet-steam technology.
“We are proud to have received this recognition from the foremost international standard-setting body,” Manny Ogena, EDC head of geosciences and reservoir engineering, said.
“This certification further strengthens our commitment to adhere to our company’s quality policy to deliver accurate, cost effective, reliable and timely technical services that will ultimately help EDC achieve its goal of providing clean and renewable geothermal energy to the country,” he added.
The certification process took over a year. TUV issued the certification after its thorough review of the EDC processes and practices.
EDC’s performance in personnel safety, equipment calibration, maintenance planning, and following best industry practices were key in qualifying for the certification.
The certificates are valid from June 26, 2014 up to June 25, 2017.
Ogena said “the ISO 9001:2008 certification further validates the effectiveness of the processes and systems we have in place, while giving us a tangible motivation for constant improvement.
It also gives us greater confidence as we continue to break new ground as an international geothermal power developer.”
EDC has geothermal power sites located in the Bicol Region, Leyte, Negros island and in Kidapawan, Mindanao.
In recent years, EDC has been awarded geothermal concessions in Chile and Peru in Latin America. source
No Palace stand on power crisis yet
Manila Standard Today
By Joyce Pangco Panares, Alena Mae S. Flores, Maricel V. Cruz and Vito Barcelo
Jul. 23, 2014 at 12:01am
PRESIDENT Benigno Aquino III has yet to come up with a decision on the proposal of Energy Secretary Jericho Petilla to declare an emergency to address the projected power supply shortage in Luzon in 2015.
“The final decision will be announced by the President himself,” Petilla said in a text message after a meeting at the Palace on Tuesday.
“We will explore all options but we will not be able to recommend anything for now until the President, Congress and Senate give the go signal,” he said.
Petilla also said he was open to meeting with his detractors who oppose giving Aquino emergency powers so he could put up additional generating capacity.
“If some people are not inclined to do this, I’m more than happy to sit down with them and listen to options,” Petilla said.
“If people are willing to take the risk...if people are willing to have brownouts this summer, then we can opt not to have this.”
Petilla made his statement even as an opposition lawmaker on Tuesday urged Malacañang to convene the Legislative-Executive Development Advisory Council to discuss the possibility of granting Aquino emergency powers to address the power shortage.
“A state of emergency in the power sector can definitely hasten the approval and therefore the establishment of new power-generation projects,” Isabela Rep. Rodolfo Albano III said.
Reps. Rodel Batocabe, Silvestre Bello, Ben Evardone and Bolet Banal supported Albano but House Speaker Feliciano Belmonte Jr. said the President should not be given emergency powers unless he asked for it.
The Trade Union Congress on Tuesday supported Petilla’s call to declare an emergency in the power sector.
“We fully support the invocation of Section 71 of EPIRA, which will allow the President to step in with programs to provide additional generation capacity,” group executive director Luis Corral said in a statement.
Based on the projections of the Department of Energy, there could be a possible shortage of 200 megawatts from March to May 2015.
“Secretary Petilla is proposing an additional capacity of 200 to 300 megawatts, making a total of 400 to 500 megawatts in new capacity in Luzon and parts of the Visayas,” Communications Secretary Sonny Coloma said.
“This shortfall may be incurred despite the fact that several new power plants are now being built and will go on stream starting the second half of 2015,” he said.
Petilla invoked Section 71 of the Electric Power Industry Reform Act, which authorizes Congress to establish additional generating capacity if the President determines it is necessary.
“Secretary Petilla clarifies that there may be a need to resort to this EPIRA provision because, according to existing laws, the private sector has primary responsibility for providing new generation capacity and the government may step in only if there is an emergency,” Coloma said.
“Hence, Secretary Petilla says there is a need for government to study at this point whether this course of action is warranted way ahead of the projected time of shortfall.”
Coloma said the Department of Energy was only being “proactive” in addressing the projected shortfall during the summer months of 2015.
Last year, the President did not declare an emergency in Mindanao to address the power shortage there.
Aquino only issued Executive Order 137 in July last year to create a P4.5-billion loan facility for the purchase of modular generator sets that could be tapped by the electric cooperatives in Mindanao.
The P4.5 billion budget was sourced from the Malampaya Fund.
The TUCP has said it supports the proposal to declare a state of emergency to address the power shortage in Luzon but it turned down the Department of Energy’s suggestion that generation sets be purchased of generation. source
By Joyce Pangco Panares, Alena Mae S. Flores, Maricel V. Cruz and Vito Barcelo
Jul. 23, 2014 at 12:01am
PRESIDENT Benigno Aquino III has yet to come up with a decision on the proposal of Energy Secretary Jericho Petilla to declare an emergency to address the projected power supply shortage in Luzon in 2015.
“The final decision will be announced by the President himself,” Petilla said in a text message after a meeting at the Palace on Tuesday.
“We will explore all options but we will not be able to recommend anything for now until the President, Congress and Senate give the go signal,” he said.
Petilla also said he was open to meeting with his detractors who oppose giving Aquino emergency powers so he could put up additional generating capacity.
“If some people are not inclined to do this, I’m more than happy to sit down with them and listen to options,” Petilla said.
“If people are willing to take the risk...if people are willing to have brownouts this summer, then we can opt not to have this.”
Petilla made his statement even as an opposition lawmaker on Tuesday urged Malacañang to convene the Legislative-Executive Development Advisory Council to discuss the possibility of granting Aquino emergency powers to address the power shortage.
“A state of emergency in the power sector can definitely hasten the approval and therefore the establishment of new power-generation projects,” Isabela Rep. Rodolfo Albano III said.
Reps. Rodel Batocabe, Silvestre Bello, Ben Evardone and Bolet Banal supported Albano but House Speaker Feliciano Belmonte Jr. said the President should not be given emergency powers unless he asked for it.
The Trade Union Congress on Tuesday supported Petilla’s call to declare an emergency in the power sector.
“We fully support the invocation of Section 71 of EPIRA, which will allow the President to step in with programs to provide additional generation capacity,” group executive director Luis Corral said in a statement.
Based on the projections of the Department of Energy, there could be a possible shortage of 200 megawatts from March to May 2015.
“Secretary Petilla is proposing an additional capacity of 200 to 300 megawatts, making a total of 400 to 500 megawatts in new capacity in Luzon and parts of the Visayas,” Communications Secretary Sonny Coloma said.
“This shortfall may be incurred despite the fact that several new power plants are now being built and will go on stream starting the second half of 2015,” he said.
Petilla invoked Section 71 of the Electric Power Industry Reform Act, which authorizes Congress to establish additional generating capacity if the President determines it is necessary.
“Secretary Petilla clarifies that there may be a need to resort to this EPIRA provision because, according to existing laws, the private sector has primary responsibility for providing new generation capacity and the government may step in only if there is an emergency,” Coloma said.
“Hence, Secretary Petilla says there is a need for government to study at this point whether this course of action is warranted way ahead of the projected time of shortfall.”
Coloma said the Department of Energy was only being “proactive” in addressing the projected shortfall during the summer months of 2015.
Last year, the President did not declare an emergency in Mindanao to address the power shortage there.
Aquino only issued Executive Order 137 in July last year to create a P4.5-billion loan facility for the purchase of modular generator sets that could be tapped by the electric cooperatives in Mindanao.
The P4.5 billion budget was sourced from the Malampaya Fund.
The TUCP has said it supports the proposal to declare a state of emergency to address the power shortage in Luzon but it turned down the Department of Energy’s suggestion that generation sets be purchased of generation. source
Tuesday, July 22, 2014
Power supply critical starting next year
Manila Bulletin
July 22, 2014
For power supply especially in the biggest grid and economic center of Luzon, it will get worse before it gets better and the peak of blackouts may happen next year and at the tail-end of Aquino administration in 2016.
Based on studies, reserve capacities during peak demand months of summer for Luzon may just hover at 500 to 800 megawatts, way below the required reserve level for an electricity system to operate seamlessly.
If gauged from recent developments, even the low demand periods are already afflicted with rotating brownouts. Such then raised worries that the dilemmas of power supply may hit unwarranted proportions on higher demand months.
Finally, Energy Secretary Carlos Jericho L. Petilla is now acknowledging the “very critical situation” in the country’s electricity supply and that is also giving him leverage to recommend emergency powers for President Aquino.
He indicated that in his meeting with the Philippine Independent Power Producers Association Inc. (PIPPA) on Tuesday, the power generators can no longer give assurance of capacity additions between now until early part of 2016.
Petilla stressed that if national emergency on power supply would not be declared, the option for the public will be “brownouts in 2015, because that will be inevitable.”
“I just talked to PIPPA and I told them, if you have capacity to show, then bring out those capacities now… but even them, they cannot guarantee.”
He further noted “the power generators cannot commit because they still have issues with secondary cap (with the Wholesale Electricity Spot Market) and even with permitting… but if we have emergency powers, we can cut short most of the processes because there is really an emergency.”
The energy chief added “if there are people who are not inclined to this, the only thing I can say is: I am willing to sit down with them and listen to their options.”
This current administration may already lack time putting up the “quick fixes” to save President Aquino from being tagged the “prince of darkness” as he steps down from Malacañang in June 2016.
Many private companies are advancing their power projects to construction, but their commercial operation may not come early enough to avert the anticipated blackouts of 2015 and 2016.
The remedial measure being pushed by various quarters will be for President Aquino to be given “emergency powers” to solve the apparent power supply crisis.
And while Petilla is open to the idea, he noted that Congress must identify the source of budget needed for the setting up of off-the-shelf or fast-track power facilities. (Myrna Velasco) source
July 22, 2014
For power supply especially in the biggest grid and economic center of Luzon, it will get worse before it gets better and the peak of blackouts may happen next year and at the tail-end of Aquino administration in 2016.
Based on studies, reserve capacities during peak demand months of summer for Luzon may just hover at 500 to 800 megawatts, way below the required reserve level for an electricity system to operate seamlessly.
If gauged from recent developments, even the low demand periods are already afflicted with rotating brownouts. Such then raised worries that the dilemmas of power supply may hit unwarranted proportions on higher demand months.
Finally, Energy Secretary Carlos Jericho L. Petilla is now acknowledging the “very critical situation” in the country’s electricity supply and that is also giving him leverage to recommend emergency powers for President Aquino.
He indicated that in his meeting with the Philippine Independent Power Producers Association Inc. (PIPPA) on Tuesday, the power generators can no longer give assurance of capacity additions between now until early part of 2016.
Petilla stressed that if national emergency on power supply would not be declared, the option for the public will be “brownouts in 2015, because that will be inevitable.”
“I just talked to PIPPA and I told them, if you have capacity to show, then bring out those capacities now… but even them, they cannot guarantee.”
He further noted “the power generators cannot commit because they still have issues with secondary cap (with the Wholesale Electricity Spot Market) and even with permitting… but if we have emergency powers, we can cut short most of the processes because there is really an emergency.”
The energy chief added “if there are people who are not inclined to this, the only thing I can say is: I am willing to sit down with them and listen to their options.”
This current administration may already lack time putting up the “quick fixes” to save President Aquino from being tagged the “prince of darkness” as he steps down from Malacañang in June 2016.
Many private companies are advancing their power projects to construction, but their commercial operation may not come early enough to avert the anticipated blackouts of 2015 and 2016.
The remedial measure being pushed by various quarters will be for President Aquino to be given “emergency powers” to solve the apparent power supply crisis.
And while Petilla is open to the idea, he noted that Congress must identify the source of budget needed for the setting up of off-the-shelf or fast-track power facilities. (Myrna Velasco) source
San Lorenzo gas plant resumes operation
Manila Bulletin
by Myrna Velasco
July 22, 2014
The 500-megawatt San Lorenzo gas fired power plant of First Gas Power Corporation has been synchronized back to the grid on Monday, the operator firm has announced.
The Lopez company, in a disclosure to the Philippine Stock Exchange (PSE), has noted that both units of the combined cycle gas power facility “have resumed operations.”
First Gen earlier apprised relevant stakeholders that its gas power facilities had been affected by flooding at last week’s onslaught of typhoon Glenda.
Many power plants have been out from the system last week – fundamentally Luzon and Visayas grids – either due to operational strain or damages induced by the typhoon’s strike.
This prompted distribution utilities like Manila Electric Company (Meralco) to schedule six-hour long of rotating brownouts up to Friday last week on deficient supply. That was even after most of its lines were already restored for electricity service to end-users.
The San Lorenzo plant has just gotten back to full operation in this year’s first quarter following months of “ceased generation capacity” for one of its generating units which was thumped by a fire incident at the facility.
The other plant of First Gen at the Batangas site – the 1,000-MW Santa Rita gas facility – had just undergone also an equipment replacement so it can shore up its volume of generation to optimized level.
Natural calamities or the so-called force majeure events are unwanted drawbacks in the operations of any country’s electricity system. Owners and operators of power facilities, however, are still required to guarantee the operations of their assets in the most efficient and reliable way.
Due to lower demand this week, the feared scenario of lingering rotating brownouts had so far been avoided – and that will be unless demand will suddenly pick up with anticipated rise in temperatures when the rains stop.
For most of the worst-hit areas of typhoon Glenda, however, dilemmas of blackouts may linger until next week. source
by Myrna Velasco
July 22, 2014
The 500-megawatt San Lorenzo gas fired power plant of First Gas Power Corporation has been synchronized back to the grid on Monday, the operator firm has announced.
The Lopez company, in a disclosure to the Philippine Stock Exchange (PSE), has noted that both units of the combined cycle gas power facility “have resumed operations.”
First Gen earlier apprised relevant stakeholders that its gas power facilities had been affected by flooding at last week’s onslaught of typhoon Glenda.
Many power plants have been out from the system last week – fundamentally Luzon and Visayas grids – either due to operational strain or damages induced by the typhoon’s strike.
This prompted distribution utilities like Manila Electric Company (Meralco) to schedule six-hour long of rotating brownouts up to Friday last week on deficient supply. That was even after most of its lines were already restored for electricity service to end-users.
The San Lorenzo plant has just gotten back to full operation in this year’s first quarter following months of “ceased generation capacity” for one of its generating units which was thumped by a fire incident at the facility.
The other plant of First Gen at the Batangas site – the 1,000-MW Santa Rita gas facility – had just undergone also an equipment replacement so it can shore up its volume of generation to optimized level.
Natural calamities or the so-called force majeure events are unwanted drawbacks in the operations of any country’s electricity system. Owners and operators of power facilities, however, are still required to guarantee the operations of their assets in the most efficient and reliable way.
Due to lower demand this week, the feared scenario of lingering rotating brownouts had so far been avoided – and that will be unless demand will suddenly pick up with anticipated rise in temperatures when the rains stop.
For most of the worst-hit areas of typhoon Glenda, however, dilemmas of blackouts may linger until next week. source
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