Industry, DOE prepare for Malampaya shutdown

By: Daxim L. Lucas - / 12:08 AM January 11, 2017
https://business.inquirer.net/222779/industry-doe-prepare-malampaya-shutdown

The Department of Energy (DOE) has instructed power industry participants to ensure amply supply of electricity during the maintenance shutdown of the Malampaya natural gas fields in Palawan from Jan. 28 to Feb. 16.

Under the directive of Energy Secretary Alfonso Cusi, the department has ordered stakeholders to prepare for the possible implementation of price mitigation measures in the aftermath of the shutdown when electricity rates usually rise.
“I have directed Undersecretary Wimpy Fuentebella to closely coordinate and spearhead the power sector’s activities in light of the Malampaya shutdown,” Cusi said. “We’ve already conducted a series of coordination meetings, simulations and exhausting all possible measures that we can implement to ensure supply and avoid price shocks.”

The DOE is closely monitoring the readiness and execution of the following measures:

Ensuring the availability of fuel for the affected natural gas power plants (NGPP) namely the 1,000-megawatt (MW) Sta. Rita plant, the 500-MW San Lorenzo plant and the 97-MW Avion plant, all in Batangas

Operation of the government-owned 470-MW Malaya Thermal Power Plant in Pililla, Rizal

Implementation of the Interruptible Load Program where private sector participants with 900MW in enrolled capacities would augment supply during critical periods

Based on the projections, highest demand is projected to reach 8,610 MW on Feb. 9, while the lowest reserve level is projected at 706 MW on Feb. 16 which pose a possible “Yellow Alert” on the country’s power supply levels.