21 firms sign up to plug 700-MW shortage in 2015

Business World Online
Posted on November 11, 2014 11:08:00 PM
By Claire-Ann M. C. Feliciano, Senior Reporter

A TOTAL of 21 companies have expressed willingness to provide additional generating capacity for the summer months of next year even after President Benigno S. C. Aquino III gave up that option due to time constraints.

The Power Sector Assets and Liabilities Management Corp. (PSALM) in a statement yesterday named the companies that submitted letters of intent to provide the capacity needed to plug the 700-megawatt (MW) anticipated shortage.

These potential contractors are: Altaphil, Inc.; Aggreko Pte. Ltd.; APac Energy Rental Pte. Ltd.; APR Energy; ATN Philippines Solar Energy Group, Inc.; Cinta Asia (Singapore) Pte. Ltd.; Energreen Technology, Inc.; Enertech Systems Industries, Inc.; General Electric Co.; Guangxi Hydroelectric Construction Bureau; and, Horizon Synergy, Co., Ltd.

Also in the list are Itochu Corp.; Jeongan Electric Company, Ltd.; JS Philippines Global Corp.; Novo-Gapmec Power Philippines, Inc.; PT Sumberdaya Sewatama - Power Solution Provider; Philman Corporate Distribution; Ring Power Corporation; Siemens, Inc. - Philippines; SO Energy, International Inc.; and Third Millennium Holdings Corp.

PSALM President Emmanuel R. Ledesma, Jr. acknowledged that the leasing of additional capacities was already a foregone option, as declared by Mr. Aquino last month.

“But there is no directive at this point to stop discussions with the possible suppliers,” he said in a text message.

“You will never know if somebody can offer a solution for whatever reason,” he added.

He said the names of the potential contractors are released “in the interest of transparency.”

Late last month, Mr. Aquino said time has run out for the government to contract additional capacity with the two chambers of Congress yet to come up with a joint resolution authorizing such.

Mr. Aquino invoked the power crisis provision of the Electric Power Industry Reform Act of 2001 last September after the Energy department announced a power shortage from March to June 2015.

Given the current scenario, Mr. Aquino said the government would have to focus on its other options which include the Interruptible Load Program (ILP), energy conservation measures and running old, reconditioned but workable plants.

By end-November, the House of Representatives is expected to approve its version of a joint resolution that will only empower the ILP.

Through the ILP, malls and other big establishments will be asked to generate their own generating sets during the shortage in exchange for compensation.

Officials from the Energy department, however, continued to press for authority to contract additional capacity as they noted that ILP capacities only have around 50% dependability. source