Monday, December 12, 2016

Cusi admits error in draft energy plan



Published November 17, 2016, 10:01 PM By Myrna M. Velasco

Energy Secretary Alfonso G. Cusi has admitted to the media that there had been “error” in the draft Philippine Energy Plan (PEP) that was presented recently by his department to the industry stakeholders.
Nevertheless, he was quick to add that adjustments and fine-tuning will eventually be done based on the feedback that they will draw from consultation with the industry players.
“There is an error on the PEP… in the current ratio, I cannot even determine yet how much is the share of LNG (liquefied natural gas),” he said.
In the initial blueprint of the energy plan, it was manifested that coal technology will continue to dominate until year 2030 with 49.5 percent share and that gas will just have a marginal share of 8.2 percent by the tail end of the planning horizon.
But the energy chief said, gas will be an essential component of the country’s power generation – given that it can be utilized in the system with flexibility.
“The built-in advantage of gas is that it is ambidextrous, it can qualify for baseload, mid-merit and peaking,” he said.
Expansion of the gas sector in the energy mix is currently a serious policy undertaking for the Department of Energy (DOE), primarily with planned setting up of LNG import facilities and final implementation of the long-delayed Bataan-Manila (BatMan) high pressure gas pipeline.
Purportedly, such will replace gas supply from the Malampaya field because of its well-anticipated production decline until the end of its contract in 2024.
Apart from these two technologies, the energy department is also set on advancing the development of more massive renewable energy (RE) technologies – and a choice that will turn more affordable in the future with technology coupling such as battery storage.
Cusi is presenting about 80-percent baseload supply in the propounded energy mix, but this is a matter still being weighed carefully by industry stakeholders.

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