Small-scale power generators offer services to gov’t to ease shortage

By Iris C. Gonzales (The Philippine Star) | Updated August 28, 2014 - 12:00am

MANILA, Philippines - Small-scale power generators are urging the government to tap this growing industry to help avert a looming supply shortage next year.

Applied Systems Manufacturing, a local generator set manufacturer, said small-scale power generators are as capable of producing power as the big generators.

Company president Roland Lorilla said instead of just relying on big corporations and multinationals to build power plants, the government can include small power generators in the country’s energy portfolio.

“We must free up the market dominated by big power companies by including small investors who can generate their own power requirement and feed the excess to the grid,” Lorilla said.

He said this can be done if the government allows net metering for all energy sources.

“We must put in place policies that make small scale power feasible and profitable,” Lorilla said.

The net metering system is provided under the Renewable Energy Law of 2008. It allows electricity end-users who are updated in the payment of their electricity bills to their distribution utility to engage in distribution generation.

“We are facing an impending power crisis. With net metering, we can make use of more than 2,000 megawatts of standby power in malls, factories buildings and other establishments. The government must grant incentives to owners of generating sets to get into net metering so they can feed their excess power to the grid and supply the shortfall in capacity. It must also grant incentives to power distributors who are adversely affected by net metering,” Lorilla said.

Energy Secretary Carlos Jericho Petilla has proposed the declaration of the state of emergency in the power sector to allow the government to tap additional power and avert a looming power shortage next year.

He said the Philippines will need 9,011 megawatts of power next year, higher than this year’s demand of 8,717 MW, on the back of the projected growth in the economy.

Petilla proposed the lease of bunker-fired big generating facilities from abroad to provide additional power.

However, Lorilla said the government will be spending less if it uses these funds to grant incentives to local power generators that have existing standby generator sets. source