Monday, July 24, 2017

VECO opts for balance in ‘supply portfolio’



Published July 3, 2017, 10:00 PM By Myrna M. Velasco

Although it is already leaning on 50-percent renewable energy on its overall supply portfolio, Aboitiz-led Visayan Electric Company (VECO) still indicated that “balanced approach” would be key in catering and underpinning demand growth at its service domain.
VECO Chief Operating Officer Anton Perdices acknowledged that RE sources could definitely pare the country’s dependence on fossil fuels as well as mitigate climate warming effects, but there is a need to balance that yet with socially-sensitive cost impacts.
“In the long term, RE is cheaper than fossil-based technologies…but the initial investment into RE is high at present,” he stressed.
Hence, the formula that the power utility is still embarking on would be about “maintaining a balanced mix of generation resources.”
VECO is a joint venture of Aboitiz Power Corporation and Vivant Corporation, and it is the power distributor to end-users in the Metro Cebu towns and cities.
Perdices explained “a balanced mix of renewable and thermal energy sources can address the different levels and patterns of power demand in the most efficient and cost-effective way.”
He qualified that in terms of ‘intermittency dilemmas,’ there are traditional RE technologies that are not problematic on that – the likes of geothermal and hydro, but development scale on these technologies, aside from the need for further ramping up, also have some investment-specific concerns.
“RE has its advantages…some types of RE are location-specific, like geothermal and hydro. Solar and wind farms, on the other hand, cannot provide baseload due to reliability issues,” Perdices noted.
VECO’s service area is continuously experiencing demand upswing and it is crucial for it to carefully plan its supply procurement to shore up portended economic expansion as well as the increasing power consumption of its end-users across segments.
The utility firm noted that its peak demand in 2016 hovered at 524 megawatts; and 50.47-percent of that had been mostly sourced from geothermal facilities in the Visayas grid.
Visayas is considerably a development hub for RE technologies – including geothermal facilities, solar and wind farms.

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