Sunday, July 6, 2014

DOE: ‘Committed’ power projects enough to supply rising demand

Business Mirror
06 Jul 2014 Written by Lenie Lectura

A NUMBER of committed power projects, which according to the Department of Energy (DOE) could be “enough” to address the tightness in the country’s power supply, are targeted for commissioning between 2014 and 2017.

Latest data on Private Sector Initiated Power Projects released by the agency last week showed that a total of 4,971.15 megawatts (MW) of committed additional capacity is expected to be added in the next three years.

Committed power projects are the facilities already undergoing construction.

In Luzon, 952.5 MW of additional capacity will be added this year; 1,018.14 MW in 2015; and 520.9 MW in 2016.

In the Visayas there is an expected 250 MW of additional capacity, within the year, 192.6 MW next year, and 135 MW the following year.

In power-hungry Mindanao, the committed power projects for 2014 will register an additional 341.10 MW; 420 MW in 2015; a whopping 1,120 MW in 2016; and 9 MW in 2017.

Bulk of the total 2,491.85 MW of additional capacity for Luzon, or 1,150 MW, will be sourced from natural gas-fired power plants; followed by coal, 952 MW; wind, 253 MW; biomass, 103.05 MW; and hydro, 33.3 MW.

Among these projects in Luzon include the MW San Gabriel power facilities under First Gen Corp., Pagbilao gas-fired plant and Limay power plant of SMC Consolidated Power Corp.

For the Visayas, coal-power plants with 352 MW of capacity will be built; followed by 104 MW of wind-power projects; 57.6 MW, biomass; 50 MW, geothermal; 16 MW, hydropower; and 8 MW, solar.

These new projects will be spearheaded by Toledo Power, Palm Thermal, Energy Development Corp., Sunwest Water & Electric Co. Inc., Quadriver Energy Corp., San Carlos Solar, Petrogen Energy Corp., Trans-Asia, Universal Robina Corp., San Carlos Biopower, Universal Robina Corp., Hawaiian Philippines Corp., Asian Energy System Corp. and Victorias Milling Co. Inc.

For Mindanao 1,745 MW of capacity from coal-fired power plants will be added; 64 MW from hydro; 41.1 MW from biomass; and 41.1 MW from oil-based.

The project proponents for coal-power plants include Therma South Inc.’s 300 MW; Sarangani Energy Corp.’s 200 MW, FDC Utilities Inc.’s 405 MW; GN Power’s 540 MW; and San Miguel’s 300 MW.

With the economy growing above forecasts, power supply and reserves may not keep up with the growing demand from the industries and the population.

“It should be enough but reserves are still tight. We are now addressing the issue of reserves,” said Energy Secretary Carlos Jericho L. Petilla in a text message when sought for comment.

Last year Petilla said the above-target growth in economy has kept him worried because the new power-generating plants that will be put up in the near future—or in about two years—were based only on a projected economic-growth rate of 6 percent, while actual growth is well above 7 percent.

“Actually two years ago, we were looking at a projection of 6.6 percent. Some of the power plants that are being built now may not be finished in two years time. Given that the building of base load capacity takes from three to four years, projects now in the middle of construction will not be enough since demand exceeds initial forecasting. In this race between supply and demand, the key thing is accurate demand forecasting. Although we previously sourced forecasting from utility companies, in an effort to boost accuracy we are now doing the forecasting ourselves,” he said.

The worst-case scenario could be rotating brownouts in Luzon during peak hours, or 11 a.m., 2 p.m. and 7 p.m.

“If you will look at the graph, we can solve the power crisis in Mindanao. But in Luzon.… I am not saying we don’t have future power supply, but we have to cope up with the growth rate. There will be [additional capacity] but it is in the wrong time,” Petilla had said.

But the energy secretary said the power outage could only happen if he lets it happen.

“It’s not going to happen because I will not allow it to happen. But the scenario, if I sleep on it, is that there will be an hour or two of brownouts during peak hours. But we are doing something about it. The good thing about long-term planning, if you already know the problem, is you actually scavenge for every possible resource that you can have and that’s what we’re doing right now,” Petilla said.

Meanwhile, the partnership between PhilCarbon Inc. and Megawide Construction Corp. is seen to address the government’s call for additional power capacities in anticipation of the higher demand in the next two years.

PhilCarbon President Ruth Owen said the company is bullish of its renewable energy projects following its joint venture with the construction giant. She said Megawide has the construction expertise and the financial muscle.

PhilCarbon and Megawide have agreed last week to jointly develop a portfolio of renewable-energy projects ranging from biomass, wind, hydro, solar and geothermal with a capacity of 100 MW and with investments of about $100 million.

“PhilCarbon, as a renewable-energy company, is committed to fulfill the government’s vision of energy independence under the Renewable Energy Act of 2008,” Owen said. “In response to the government’s lead, PhilCarbon is focusing on the development of wind, geothermal and mini-hydro renewable-energy sources and promoting energy efficiency.”

PhilCarbon Chairman Rufino Bomasang said PhilCarbon’s strategy is to partner with foreign and local companies to achieve the optimum blend of local and international experience to ensure effective implementation of its projects.

“Through its projects, PhilCarbon is contributing to enhanced Philippine energy security, supporting the country’s ongoing development and mitigating global climate change,” he said.

PhilCarbon’s renewable-energy projects are located throughout the country with projects in Luzon, the Visayas and Mindanao which is expected to spur economic development and uplift the lives of people in these areas. source

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