October 4, 2018 | 12:06 am By Victor V. Saulon, Sub-editor
THE Department of Energy (DoE) has
defended its move to certify the 1,200-megawatt (MW) coal-fired power plant in
Atimonan, Quezon as nationally significant, saying the long-delayed project is
needed to meet a critical point in the coming years when power supply will be
deficient and critical.
“Bakit sinabi nila na binago ko
ang aking isipan at binigyan sila ng Certificate of Energy Project of
National Significance (CEPNS) without Swiss challenge? (Why do they say that I
have changed my mind and gave a CEPNS without a Swiss challenge?),” Enegy
Secretary Alfonso G. Cusi told reporters on Tuesday at a Senate hearing on the
DoE budget for 2019.
He was referring to the granting of
a certification that allows a project to enjoy some perks such as an easier and
faster permitting process.
He previously said he wanted the
power supply agreement (PSA) between the P135-billion project led by Meralco
PowerGen Corp. (MGen) and distribution utility Manila Electric Co. (Meralco) to
go through a competitive selection process (CSP) even though a regulation
calling for such exercise was issued after the forging of the contract.
Mr. Cusi said the granting of the
certificate is not dependent on the approval of a PSA, which is pending with
the Energy Regulatory Commission (ERC). Some sectors have since questioned the
legality of the PSA, an issue that has reached the Supreme Court.
“Una, bago dumating sa
PSA, sa kontrata, meron nang CEPNS. The certificate does not cover PSA
(First, before [the project] reached its PSA, the contract, there is already a
CEPNS. The certificate does not cover PSA.),” he said.
Mr. Cusi said the PSA comes later
and separate from the permits being cleared with the DoE, including the
certification. He added that the DoE is not requiring an ERC-approved PSA
before it will issue a CEPNS.
Mr. Cusi said the need to certify
the project comes as the country needs an additional supply of 14,000 MW by
2025. Building a plant requires at least two to three years, he said, adding
that by 2021 to 2022 the DoE expects power supply to be critical, thus the need
to support the project’s faster implementation.
“Kung hindi ko gagawin ‘yan, ibig
sabihin ‘yong permit to build will only come in 2021. So nira-rush natin
‘yan. (If I don’t do that, that means the permit to build will come only in
2021 . . . So we are rushing it.),” he said.
Sought for comment, Angelito U.
Lantin, Meralco senior vice-president, said the Atimonan ultra-supercritical
coal-fired power plant is the best of its kind in terms of fuel efficiency,
thus the certification could usher an improvement for the next generation
facilities.
“It’s good to know that the
government recognizes that this project is really the first of its kind in the
Philippines. So you will be able to produce a kilowatt-hour using less fuel,”
Mr. Lantin said.
The DoE required distribution
utilities to subject their power supply contracts to a CSP starting on Nov. 7,
2015. The move is in line with rules that require them to procure power at the
least cost.
But on March 15, 2016, the ERC
restated the CSP effective date to April 30, 2016. The CSP has a similar
concept as a Swiss challenge.
“The PSA for the Atimonan project is
with the ERC and it’s supposed to be acted on by the ERC,” Mr. Lantin said,
adding that Meralco’s submission was compliant with the extended deadline.
“It was submitted on time before the
deadline for the bilateral negotiations. That’s where we are, so we’re waiting
for the ERC to act on our application,” he said.
Meralco’s controlling stakeholder,
Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc. Hastings
Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest
Holdings, Inc., has interest in BusinessWorld through the Philippine
Star Group, which it controls.
No comments:
Post a Comment