Wednesday, October 4, 2017

Meralco sees sales volume growing ‘close to 5%’



By Lenie Lectura -

THE MANILA Electric Co. (Meralco) expects energy sales volume to grow by “close to 5 percent” for 2017, higher than its earlier projection of 3 percent.
“Last year demand increased by close to 8.8 percent. This year we’re seeing close to, we’ll probably end the year at close to 5  percent at a high base,” Meralco President Oscar Reyes said at the sidelines of the 35th Asean Ministers on Energy Meeting held on Wednesday.
Reyes added he meant that Meralco may post about 5 percent higher energy sales volume from last year’s 40,142 gigawatt-hours.
As of August this year, Reyes said sales growth was registered at 4.2 percent.
He pointed to the strong growth of the domestic economy as a major factor behind the company’s energy sales volume.
“Commercial subscribers remain strong. Surprisingly, industrial is picking up. On the commercial side, all of these developments you see, such as real estate, retail trade, business-process outsourcing (BPOs), Philippine online gaming operators, new hotels, restaurants are all contributing to the growth,” Reyes explained.
He added there is a need to build up adequate capacity to address possible shortage in power supply because of rising demand.
“I think we don’t want to raise an alarm. It’s really just a realization that you’re better off with adequate capacity because it takes time to build. The yellow alerts are a reality,” he said. “I think it just shows potential vulnerability of the entire system and you are better with adequate capacity. If we cut it too thinly and there are a bit delays, then we’re going into a situation as we move to 2019 to 2022.”
Meralco Senior Vice President and Head of Utility Economics Lawrence Fernandez has expressed concern over the frequent number of times that the Luzon grid was placed on yellow alert notice.
A yellow alert means there are not enough reserves to cover the largest running generating unit at the time but does not necessarily lead to power outages. There have been three instances of yellow alerts raised since August 30.
Fernandez said the yellow alerts were triggered by forced outages of several large power-generation facilities.  In turn, these triggered the Automatic Load Dropping (ALD) scheme of Meralco.  This meant that certain areas in Meralco experienced momentary interruptions to help the grid recover from the generation outages.
“A yellow alert means there were not enough reserves to cover the largest running generating unit at the time,” Fernandez said. “We are concerned. Since August 30 there has been a once-a-week incidence of yellow alert. Our concern is that, while it has not led to red alerts, automatic load dropping occurs when power plants trip. This means some of the customers lose electric service because of the tripping of some power plants,” the Meralco official explained.
Fernandez commented that the yellow alerts and the triggering of the ALD mechanism signal the need for additional capacity in the Luzon grid.
“We need new capacities,” he said, pointing out that as demand for power continues to increase, additional generation supply will be needed, both to meet new demand and to improve the reliability of the electric system.
“While new capacity had been coming in since 2016, demand has also been growing.  In the Meralco area alone, electricity consumption had grown almost 4 percent to date.  This, despite having registered a robust growth of 8.1 percent in 2016, due to the effects of El Niño and elections-related spending,” Fernandez explained.

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