Friday, November 29, 2019

DOE backs NGCP audit as China eases fears


By: Ronnel W. Domingo - 05:30 AM November 29, 2019

The Department of Energy (DOE) on Thursday said it supported moves in the Senate  for a security audit and  a legislative inquiry into the operations of the National Grid Corp. of the Philippines (NGCP) amid concerns that China could remotely shut down the national power grid.
In Beijing, the Chinese government dismissed such fears with a spokesperson saying there was no need “to imagine trouble where there is none.”
 “The allegation of China’s control over the Philippines’ power grid or threat to the country’s national security is completely groundless,” Geng Shuang, the Chinese foreign ministry spokesperson, said on Wednesday.
Opposition Sen. Risa Hontiveros on Tuesday filed a resolution seeking the audit and the inquiry, citing worrisome statements made last week by Melvin Matibag, president of the state-run National Transmission Corp., that the national grid managed by NGCP could be remotely shut down.
Sen. Sherwin Gatchalian, who supported Hontiveros’ call, on Wednesday said the government could take control of NGCP if national security were threatened by foreign control of the power grid.

Earlier raised by Cusi
“We would like to emphasize that the matter at hand is not something new, and is, in fact, the very same points raised by Secretary Alfonso G. Cusi upon his assumption as head of the department [in 2016],” the DOE said in a statement.
“Given that there are aspects in the existing franchise agreement with the NGCP that seem inimical to the best interests of the national government, and more importantly, the Filipino people, both the DOE and Transco continue to call for, and are fully supportive of the Senate’s interest to take a closer look at the administrative, operational and procedural structures existing within the NGCP,” it said.
The DOE did not specify  the “inimical” features in the franchise agreement between Transco and NGCP. It also declined to comment on the security problems of the power grid, referring inquiries to the National Security Council.
“We consider the Senate hearings as a positive development toward the long overdue and much needed audit of NGCP, as well as the comprehensive reexamination of the franchise agreement, which is part of the presidential directive to review all government contracts that appear to be onerous,” the DOE said.
“These steps would facilitate the introduction of all necessary amendments to uphold our national security and the welfare of our citizens and consumers.”
Presidential spokesperson Salvador Panelo declined to comment on the security concerns, saying that President Duterte had not consulted defense and military officials.
 “Since that is a national security matter, I will defer to the position of the Department of National Defense as well as the National Intelligence Coordinating Agency,” he said.

Chinese 40-percent stake
The Chinese government is involved in power transmission in the Philippines through a 40-percent stake in NGCP by the State Grid Corp. of China (SGCC).
NGCP took over the operation and management of the country’s power transmission grid from Transco in January 2009 in what was considered one of the biggest privatization moves in the country.
The $3.95-billion 25-year concession agreement it won in December 2007 could be extended for another 25 years. The franchise is good for 50 years.
Speaking to reporters on Wednesday, Gatchalian said he was “shocked that there was such a technology” that could remotely shut down the entire grid, “and more shocked that we did not do anything” to deal with that.
Energy Undersecretary Felix William Fuentebella said the security concern was among the issues brought up by the government with NGCP that remained unresolved.

No need to worry
Geng, the Chinese foreign ministry spokesperson, said SGCC took part in the power transmission project “as a cooperation partner, providing safe, efficient and high-quality electricity service.”
“The project is now operated, managed and maintained by the Philippine side, with the Chinese partner offering necessary technical support upon request,” he said.
“We hope certain individuals in the Philippines will look at cooperation with China in an open, objective and impartial manner,” Geng said. “There is no need to worry about the sky falling or imagine trouble where there is none.”
A similar statement was made on Wednesday by NGCC president and CEO Anthony Almeda who welcomed senators, congressmen and an independent third party to visit the company’s facilities “in order to dispel any security concerns.”
“There is nothing to be alarmed about the stake by (SGCC) in NGCP as its investment is limited only to being a technical adviser,” Almeda said.
Almeda stressed that the software and hardware system that controls the Philippine grid was operated only by authorized Filipino technical experts and that even he, as CEO, had no access to NGCP’s internal network except during an emergency and “only after undergoing a secure and confidential approval process.”

‘Win-win cooperation’
Geng said the Philippines was “China’s close and friendly neighbor as well as an important partner.”
“We support Chinese businesses’ pursuit of practical, win-win cooperation in the Philippines in accordance with laws and regulations,” he said.
Foreign Secretary Teodoro Locsin Jr. also scoffed at claims that Beijing wanted or would be able to access the Philippines’ power grid, alluding to the country’s poor telecommunications.
“With our internet, we are impervious to cyberattack. In fuck with our phone service China cannot get through to its  ‘humint’ [human intelligence] assets to blow up the grid,” he said in a tweet. In a tweet.

Power plant woes trim 5,000 MW off Luzon


By Lenie Lectura - November 29, 2019
OVER 5,000 megawatts (MW) was shaved off from the Luzon grid Thursday because a number of power plants were still on scheduled shutdown, forced outage and could not deliver their full output.
The total power generating capacity unavailable to the grid stood at 5,310 MW. Of this, 2,176  MW was brought about by planned outage, 1,716 MW from forced outage and 1,418MW from derated plants.
This prompted the National Grid Corp. of the Philippines (NGCP) to issue a yellow alert notice from 10:01 a.m. to 12 noon, from 1:01 to 4 p.m.; and from 5:01 to 6 p.m. This is the fourth consecutive day for the NGCP to issue a yellow alert notice.
The power plants that are on scheduled shutdown are CBK Power hydro plant, Pagbilao coal plant, Sual coal plant, SEM-Calaca coal plant, Panasia combined-cycle plant, Masinloc power plant and the coal plant of South Luzon Thermal Energy Corp.
Those that went on forced outage include San Buenaventura Power Ltd. (SBPL) coal plant; Quezon Power Ltd. coal plant; Prime Meridian Power Corp. Avion natural gas plant unit 2; the gas plant of Millennium Energy Inc.; AP Renewables Inc. Makban geothermal plant and GN Power Mariveles coal plant.
A yellow alert is issued when operating reserves have dropped below the required 647 MW contingency in Luzon, or equivalent to the largest unit in Luzon, which is the 647-MW coal-fired power plant in Sual, Pangasinan.  The Manila Electric Co. has advised its ILP (Interruptible Load Program) participants to deload, if needed. 

Vivant units to buy shares from JV firm


By Lenie Lectura - November 29, 2019
Vivant Corp.’s two subsidiaries are buying more shares in ET-Vivant Solar Corp., the listed firm told the exchange on Thursday.
The company said Vivant Energy Corp. (Vivant Energy) executed a deed of sale with assignment of subscription rights with ET Energy Pilipinas Holding Corp. for the latter to sell the 8,858,484 paid-up preferred shares, and to assign its rights over the 9,141,516 subscribed but unpaid preferred shares of ETEPHC in ET-Vivant Solar Corp.
In addition, Vivant Renewable Energy Corp. executed a deed of sale with assignment of subscription Rights with ETEPHC to sell to VREC the 984,276 paid-up common shares, and to assign its rights over the 1,015,724 subscribed but unpaid common shares of ETEPHC in ET-Vivant Solar.
“We have not acquired ETEPHC. We purchased ETEPHC’s shares in a previous joint venture, ET-Vivant,” said Vivant Assistant Vice President for Corporate Communications Shem Jose Garcia.
The transaction will result in Vivant Energy and VREC collectively owning 99.99 percent of ET-Vivant Solar. The remaining shares are shares held by members of the Board of Directors.
“The main reason for this is that we are currently working on a new brand that consolidates all our business-to-business customer-facing energy solutions.
The brand is launching next year. So, it’s not too early to give all the details, but the purchase of remaining shares of ET-Vivant was to have complete control over our rooftop solar offering, which will be just one of the services offered,” said Garcia.
ET-Vivant Chief Operating Officer Mark Habana added that the acquisition would help improve Vivant Energy’s renewable-energy portfolio. “ETEPHC was our partner in a joint venture to develop rooftop solar projects. We acquired shares of the joint-venture company,” he explained.