Published
By Myrna M. Velasco
With decrepit
infrastructure and lack of firm investment commitments, the Department of
Energy (DOE) and Energy Regulatory Commission (ERC) have finally been prompted
to act on pending power supply agreements (PSAs) for energy projects.
In particular, the DOE
indicated that it asked the ERC “to expediently work towards the realization of
the PSAs of all committed power projects to ensure the security of our power
supply reserves.”
Notably, the ERC is not
strong and determined enough to decide on PSAs that are pending at the
regulatory body – primarily the legally-impeded supply deals for power projects
that are in contract with Manila Electric Company.
It can be culled that
two of these power projects – the 1,200MW Atimonan and 600MW Subic are in the
“committed power projects” list of the energy department.
The ERC is targeting to
address such PSA applications after the issuance of verdicts by the Supreme
Court on pending cases – and it is looking at mid-2020 as a possible decision
timeframe.
Nevertheless, one of
the ERC Commissioners will be retiring next year, hence, that may emerge as a
reason again for the regulatory body to delay rulings. And even ERC Chairperson
Agnes Devanadera does not have much time leeway because her term also ends in
2022.
With electricity supply
in the country getting squeezed on the reserves sphere, Energy Secretary
Alfonso G. Cusi indicated that his department is now collaborating with the ERC
“to proactively work together on a twin approach to enhance the security and
accessibility of power supply.”
Beyond lip service,
however, it has yet to be seen if these two officials who are widely perceived
in the industry to be in a “constant turf war” could finally harmonize their
acts so the non-moving power projects could ultimately proceed to
implementation phases.
Cusi enthused that “the
ERC and the DOE share the same goal of making sure that our people would have
sufficient, affordable and reliable electricity” – getting to that point though
is the missing link in the energy chief’s pronouncements because gestation
period of power plant projects take time; and the smorgasbord energy mix of
this administration still appears to be obfuscated – with preferences still
unclear whether to continually embrace coal, opt for indigenous gas or
liquefied natural gas (LNG) imports or inject that much renewables in the power
system.
The DOE chief further
sounded off that “an effective partnership between the DOE and ERC is very
crucial to the attainment of our energy goals – which is why we have been
meeting regularly.”
Beyond the
collaborative efforts it has been advancing with the ERC, the energy chief said
he had instructed state-run National Power Corporation (NPC) on a push for
“hybrid technology” for SPUG areas.
He admitted though that
this is still under study phase; along with the entry of qualifying third
parties (QTPs) in what had been classified as unviable areas.
Like a reminder to
himself and his department, Cusi stressed “we cannot afford any further delays,
especially when it comes to the sufficiency of our power supply and providing
widespread access to electricity.”
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