Danessa Rivera (The Philippine Star) - December 29, 2020 - 12:00am
https://www.philstar.com/business/2020/12/29/2066760/erc-lowers-threshold-open-access
MANILA, Philippines — The Energy Regulatory Commission (ERC) is lowering the threshold for open access, allowing those consuming at least 500 kilowatts (kw) a month to choose their own supplier by Feb. 26, 2021.
In a recent resolution, the ERC said it expanded the coverage of Retail Competition and Open Access (RCOA) pursuant to its mandate under Section 31 of the Electric Power Industry Reform Act (EPIRA) and Rule 12 of its Implementing Rules and Regulations (IRR).
The new resolution will cover end-users with an average monthly peak demand of at least 500 kw for the preceding 12 months, which is Phase III, on a voluntary basis.
This means all qualified end-users can be considered as contestable customers under the Phase III threshold level, or those consuming 500kw to 749 kw a month, and shall be allowed to switch to the Competitive Retail Electricity Market (CREM) starting Feb. 26, 2021.
The ERC said this is aimed to promote competition and ensure the successful restructuring and modernization of the electric power industry.
“The expansion of the RCOA coverage is the embodiment of the EPIRA’s end-goal of achieving competition at the retail or end-user level. Promoting robust and fair competition among the market participants is definitely one of the significant considerations that the ERC is eyeing which can help boost further the country’s economy, especially in the power industry during this trying times,” ERC chairperson and CEO Agnes Devanadera said in a statement.
The ERC said the expansion of the threshold was a result of the commission’s thorough evaluation and study of the readiness of the market, the necessary infrastructure, customer awareness, and the economic impact of the migration of contestable customers towards CREM, in support of the national government’s thrust towards economic recovery.
Devanadera said contestable customers who decided to switch to their preferred electricity supplier enjoyed lower rates than those under distribution utilities (DUs).
“Based on our data as of November, the weighted average price in the CREM for Phase 1 (those consuming one megawatt and up) and Phase 2 (those consuming 750 kw) is P3.63 per kilowatt-hour (kWh), which is lower than the generation charge billed by DUs for the captive market, for the same period, in Luzon and Visayas which ranges from P3.9513 per kwh to P5.0985 per kwh,” the ERC chief said.
“We expect that competition will be stronger and the supply of electricity will become more affordable and reliable as RCOA becomes more popular in the coming years,” Devanadera said.
At present, the RCOA scheme is operational, and shall remain in effect, in the Luzon and Visayas grids.
“Indeed, the RCOA has gained ground and the intent of the EPIRA was achieved for Phases 1 and 2. We are optimistic that the expanded RCOA implementation will result in further reduction in electricity rates, which will encourage more investors in the country and bring more job opportunities. This will definitely aid the country towards economic recovery from the negative impacts of this pandemic,” Devanadera said.
RCOA is a provision under the EPIRA that allows contestable customers, or those whose peak demand falls within the threshold level of contestability, to freely choose their electricity supplier.
RCOA was first implemented in 2013 for large power users with at least one MW consumption a month. The threshold was lowered to 750 kw in 2016.
End-users with at least one MW usage were then required to migrate to RCOA on last Feb. 26, 2017, while all customers with at least 750 kw in demand were supposed to migrate on June 26, 2017.
However, in February 2017, the Supreme Court stopped the Department of Energy (DOE) and ERC from implementing the mandatory migration of large power consumers to RCOA.
The TRO was sought by the Philippine Chamber of Commerce and Industry, San Beda College Alabang Inc., Ateneo de Manila University and Riverbanks Development Corp., which said the new rules supposedly limits the accredited suppliers for big power consumers which must be given a choice whether to stay with their current distribution utility suppliers.
Now, large power users can still shift to RCOA on a voluntary basis.
Tuesday, December 29, 2020
Meralco announces lower power rates during holidays
By The Manila Times December 29, 2020
https://www.manilatimes.net/2020/12/29/public-square/meralco-announces-lower-power-rates-during-holidays/819294/
Meralco reports that Power rates this December are at its second lowest
since September 2017.
MERALCO continues to lower power rates toward the end of the year as the overall rate for a typical household decreased by P0.0352/kWh to P8.4753/kWh this December.
This is equivalent to a decrease of around P7 in the total bill of residential customers, consuming 200 kWh.
This month’s overall rate is also a net rate reduction of P1.3870/kWh, which is equivalent to a bill reduction of more than P277 for a 200-kWh household since the start of the year. It is also the second lowest overall power rate since September 2017.
Customers may visit their nearest Meralco Business Center, which will keep its doors open during the general community quarantine and accept service applications, payments and other transactions.
As featured on this month’s Meralco Advisory, Meralco has also made paying the monthly electricity bill even more convenient as only the Customer Account Number or CAN, which is printed on the bill, is needed during payment.
Strict safety measures such as the “no mask, no entry” rule, physical distancing and temperature check continue to be implemented. Frontliners are available and ready but strictly follow physical distancing guidelines. Visitors can rest assured that these frontliners have passed the rapid Covid-19 testing authorized by the Pasig City Health Office. There are also acrylic barriers set up in Meralco branches to protect both customers and frontliners.
https://www.manilatimes.net/2020/12/29/public-square/meralco-announces-lower-power-rates-during-holidays/819294/
Meralco reports that Power rates this December are at its second lowest
since September 2017.
MERALCO continues to lower power rates toward the end of the year as the overall rate for a typical household decreased by P0.0352/kWh to P8.4753/kWh this December.
This is equivalent to a decrease of around P7 in the total bill of residential customers, consuming 200 kWh.
This month’s overall rate is also a net rate reduction of P1.3870/kWh, which is equivalent to a bill reduction of more than P277 for a 200-kWh household since the start of the year. It is also the second lowest overall power rate since September 2017.
Customers may visit their nearest Meralco Business Center, which will keep its doors open during the general community quarantine and accept service applications, payments and other transactions.
As featured on this month’s Meralco Advisory, Meralco has also made paying the monthly electricity bill even more convenient as only the Customer Account Number or CAN, which is printed on the bill, is needed during payment.
Strict safety measures such as the “no mask, no entry” rule, physical distancing and temperature check continue to be implemented. Frontliners are available and ready but strictly follow physical distancing guidelines. Visitors can rest assured that these frontliners have passed the rapid Covid-19 testing authorized by the Pasig City Health Office. There are also acrylic barriers set up in Meralco branches to protect both customers and frontliners.
DOE vows to help MORE Power upgrade city’s distribution grid
December 29, 2020
https://dailyguardian.com.ph/doe-vows-to-help-more-power-upgrade-citys-distribution-grid/
The Department of Energy (DOE) vowed to help MORE Electric and Power Co. (MORE Power) modernize the distribution system of Iloilo City.
In a visit to MORE Power’s corporate office in Iloilo City on Monday, DOE Usec. Emmanuel Juaneza, who hails from Arevalo, Iloilo City, said he was impressed by the distribution utility’s efforts to upgrade Iloilo City’s power supply system since taking over in February 2020.
Usec. Juaneza is married to Alma Juaneza, an executive assistant of Iloilo City Mayor Jerry Treñas. They also visited MORE Power’s control center, trading room, and warehouse.
Juaneza and Iloilo City lone district Rep. Julienne Baronda were accompanied by MORE Power President and COO Roel Z. Castro in inspecting the modern meters and other equipment that the firm is installing in the city’s distribution grid.
Castro also presented to them MORE Power’s modernization plans in the next five years.
“MORE Power showed us the changes it has done so far and the steps taken to improve supply reliability. MORE is moving towards upgrading and stepping up for the convenience of the customers,” Juaneza said.
Juaneza said he was also impressed by MORE Power’s aim to connect 30,000 households in the city to supply grid, which jives with the Duterte administration’s electrification program under the leadership of Energy Sec. Alfonso Cusi.
“I am glad that we were shown the new meters, the process of changing old meters from previous franchise holder, and the relocation and replacement of old poles,” he added.
The DOE also assured its help in MORE Power’s plan to procure competitive and stable power supply to bring down the cost of power and ensure reliability in the long run.
Rep. Baronda thanked MORE Power for “working tirelessly to upgrade the electric distribution systems and facilities of our city.”
“Thank you to Mr. Roel Castro, the company’s president, and the rest of the team for aiding us further in the progress and growth of Iloilo City,” Rep. Barond added.
https://dailyguardian.com.ph/doe-vows-to-help-more-power-upgrade-citys-distribution-grid/
The Department of Energy (DOE) vowed to help MORE Electric and Power Co. (MORE Power) modernize the distribution system of Iloilo City.
In a visit to MORE Power’s corporate office in Iloilo City on Monday, DOE Usec. Emmanuel Juaneza, who hails from Arevalo, Iloilo City, said he was impressed by the distribution utility’s efforts to upgrade Iloilo City’s power supply system since taking over in February 2020.
Usec. Juaneza is married to Alma Juaneza, an executive assistant of Iloilo City Mayor Jerry Treñas. They also visited MORE Power’s control center, trading room, and warehouse.
Juaneza and Iloilo City lone district Rep. Julienne Baronda were accompanied by MORE Power President and COO Roel Z. Castro in inspecting the modern meters and other equipment that the firm is installing in the city’s distribution grid.
Castro also presented to them MORE Power’s modernization plans in the next five years.
“MORE Power showed us the changes it has done so far and the steps taken to improve supply reliability. MORE is moving towards upgrading and stepping up for the convenience of the customers,” Juaneza said.
Juaneza said he was also impressed by MORE Power’s aim to connect 30,000 households in the city to supply grid, which jives with the Duterte administration’s electrification program under the leadership of Energy Sec. Alfonso Cusi.
“I am glad that we were shown the new meters, the process of changing old meters from previous franchise holder, and the relocation and replacement of old poles,” he added.
The DOE also assured its help in MORE Power’s plan to procure competitive and stable power supply to bring down the cost of power and ensure reliability in the long run.
Rep. Baronda thanked MORE Power for “working tirelessly to upgrade the electric distribution systems and facilities of our city.”
“Thank you to Mr. Roel Castro, the company’s president, and the rest of the team for aiding us further in the progress and growth of Iloilo City,” Rep. Barond added.
Meralco says sale price of GBPC is fair, reasonable
posted December 28, 2020 at 07:20 pm by Alena Mae S. Flores
https://manilastandard.net/business/power-technology/343089/meralco-says-sale-price-of-gbpc-is-fair-reasonable.html
Manila Electric Co. said Monday the acquisition price of P34.466 billion that wholly-owned unit Meralco PowerGen Corp. paid for the 86-percent stake in Global Business Power Corp. is “fair and reasonable.”
Meralco said in a disclosure to the stock exchange Meralco PowerGen engaged the services of an independent third party to provide a fairness opinion on the terms of the transaction.
“Based on such independent review, the fairness opinion concluded that the price for the transaction is fair and reasonable from a financial standpoint,” Meralco said.
Meralco PowerGen signed agreements with Beacon Powergen Holding Inc., a wholly-owned subsidiary of Metro Pacific Investments Corp., and JG Summit Holdings Inc. last week to sell their respective shareholdings in GBP to Meralco PowerGen for P22.443 billion and P12.023 billion, respectively.
The purchase price would be paid in installments: 60 percent at closing, 20 percent six months after and 20 percent after 18 months.
“The amount was the result of the negotiations between the sellers and the buyer,” Meralco said.
It said the valuation of GBP considered the business activities of GBP and its subsidiaries, including long-term power supply agreements and retail electricity supply contracts, with the balance of the group’s capacity sold to the wholesale electricity spot market.
It also took note of GBP’s expansion plans, including the development of a robust pipeline of thermal and renewable energy projects. Meralco said the valuation was based on an extensive due diligence review of GBP and its subsidiaries businesses conducted by third-party consultants and advisors.
“With GBP’s operational experience of successfully running its own portfolio of generation assets, coupled with MGen’s own record of managing the first supercritical generation plant in the country, MGen will be better placed to focus on its plan to build its own generation portfolio, including an ambition to own at least 1 gigawatts in renewable energy capacity in five years,” Meralco president Ray Espinosa said earlier.
BEAHI held 56 percent of GBP while JG Summit owned 30 percent. Meralco PowerGen owns the balance of 14 percent.
As a result of the transaction, Meralco PowerGen will own 100 percent of GBP, the leading power producer outside Luzon with a gross capacity of 1,091 megawatts. The company has assets in the Visayas and Mindanao.
GBP has almost 30 power generation facilities spread across the Visayas and Mindoro with more than 850 MW of coal and diesel powered generating capacity and more than 1.3 gigawatts for further expansion.
The main development project is a 670-MW coal-fired plant in La Union, Pangasinan.
https://manilastandard.net/business/power-technology/343089/meralco-says-sale-price-of-gbpc-is-fair-reasonable.html
Manila Electric Co. said Monday the acquisition price of P34.466 billion that wholly-owned unit Meralco PowerGen Corp. paid for the 86-percent stake in Global Business Power Corp. is “fair and reasonable.”
Meralco said in a disclosure to the stock exchange Meralco PowerGen engaged the services of an independent third party to provide a fairness opinion on the terms of the transaction.
“Based on such independent review, the fairness opinion concluded that the price for the transaction is fair and reasonable from a financial standpoint,” Meralco said.
Meralco PowerGen signed agreements with Beacon Powergen Holding Inc., a wholly-owned subsidiary of Metro Pacific Investments Corp., and JG Summit Holdings Inc. last week to sell their respective shareholdings in GBP to Meralco PowerGen for P22.443 billion and P12.023 billion, respectively.
The purchase price would be paid in installments: 60 percent at closing, 20 percent six months after and 20 percent after 18 months.
“The amount was the result of the negotiations between the sellers and the buyer,” Meralco said.
It said the valuation of GBP considered the business activities of GBP and its subsidiaries, including long-term power supply agreements and retail electricity supply contracts, with the balance of the group’s capacity sold to the wholesale electricity spot market.
It also took note of GBP’s expansion plans, including the development of a robust pipeline of thermal and renewable energy projects. Meralco said the valuation was based on an extensive due diligence review of GBP and its subsidiaries businesses conducted by third-party consultants and advisors.
“With GBP’s operational experience of successfully running its own portfolio of generation assets, coupled with MGen’s own record of managing the first supercritical generation plant in the country, MGen will be better placed to focus on its plan to build its own generation portfolio, including an ambition to own at least 1 gigawatts in renewable energy capacity in five years,” Meralco president Ray Espinosa said earlier.
BEAHI held 56 percent of GBP while JG Summit owned 30 percent. Meralco PowerGen owns the balance of 14 percent.
As a result of the transaction, Meralco PowerGen will own 100 percent of GBP, the leading power producer outside Luzon with a gross capacity of 1,091 megawatts. The company has assets in the Visayas and Mindanao.
GBP has almost 30 power generation facilities spread across the Visayas and Mindoro with more than 850 MW of coal and diesel powered generating capacity and more than 1.3 gigawatts for further expansion.
The main development project is a 670-MW coal-fired plant in La Union, Pangasinan.
Phoenix Petroleum upbeat despite virus
posted December 28, 2020 at 07:00 pm by Alena Mae S. Flores
https://manilastandard.net/business/power-technology/343085/phoenix-petroleum-upbeat-despite-virus.html
Phoenix Petroleum Philippines said Monday it is on track to a positive full-year 2020 earnings due to financial initiatives, such as cost saving measures implemented in the past several months.
Phoenix Petroleum disclosed to the Philippine Stock Exchange it implemented major steps in strengthening its balance sheet in December through a comprehensive financial management program amid the challenges of the pandemic.
“It has been a turbulent year, but we have been making headways in our engagements with creditors, and are ending the year with renewed strength and positivity,” said Phoenix Petroleum president Henry Albert Fadullon.
Phoenix Petroleum posted an operating income of ₱4.50 billion in 2019, up 12 percent from 2019. The company posted a net loss of P95 million in the first nine months of the year.
Phoenix Petroleum announced the redemption of P1.25 billion in preferred shares on December 18 following the settlement of P3 billion in short term commercial papers on December 5.
https://manilastandard.net/business/power-technology/343085/phoenix-petroleum-upbeat-despite-virus.html
Phoenix Petroleum Philippines said Monday it is on track to a positive full-year 2020 earnings due to financial initiatives, such as cost saving measures implemented in the past several months.
Phoenix Petroleum disclosed to the Philippine Stock Exchange it implemented major steps in strengthening its balance sheet in December through a comprehensive financial management program amid the challenges of the pandemic.
“It has been a turbulent year, but we have been making headways in our engagements with creditors, and are ending the year with renewed strength and positivity,” said Phoenix Petroleum president Henry Albert Fadullon.
Phoenix Petroleum posted an operating income of ₱4.50 billion in 2019, up 12 percent from 2019. The company posted a net loss of P95 million in the first nine months of the year.
Phoenix Petroleum announced the redemption of P1.25 billion in preferred shares on December 18 following the settlement of P3 billion in short term commercial papers on December 5.
PetroSolar enters PEZA awards’ Hall of Fame
Published December 28, 2020, 1:10 PM by MB Business
https://mb.com.ph/2020/12/28/petrosolar-enters-peza-awards-hall-of-fame/
PetroSolar Corporation (PSC) was elevated to the Hall of Fame of PEZA Awards for winning the Outstanding Community Project Award for three consecutive years from 2017 to 2019. The awarding ceremony was held on December 10, 2020 in Pasay City.
PEZA cited the efforts of PSC in strengthening relationship with its partner communities, a total of 11 barangays in Hacienda Luisita, Tarlac City. PGEC Environmental and Community Relations Manager, Yrel V. Ventura, explains that PSC’s efforts focused on systematic approach to health, education, and livelihood programs, with the goal of building progressive and peaceful communities.
“Our efforts would not have come to fruition without the constant dialogue and synergy with our communities, the local government units and agencies, who have consistently supported our programs,” said Ventura.
Ventura also shared that PSC’s community projects were designed based on a socio demographic survey conducted in 2016 within the said barangays to assess the needs, resources, and opportunities in the area. PSC’s flagship livelihood project for chili farmers was recognized by the Department of Agriculture (DA) to be a learning hub in the province.
“We Power HELP”
PSC’s community projects and other Corporate Social Responsibility (CSR) initiatives are implemented under We Power HELP (Health Education and Livelihood Program) banner of its parent Company, PetroEnery Resource Corporation (PERC). “Our CSR efforts began as early as 2008 when PERC supported secondary public education and teachers training in Science, Math, and English. Over the years, the Program evolved to include health and livelihood in terms of focus, and to be more inclusive and participatory in terms of implementation,” said Ventura.
We Power HELP projects are implemented in Batangas, Aklan, Tarlac, Palawan, and Mindanao, and include medical missions and nutrition campaign, Adopt-a-School, trainings for teachers, scholarships, livelihood projects for women and farmers, and crisis and disaster response.
“Earlier this year we helped families affected by Taal eruption and typhoons. We also donated food and protective equipment to our LGU frontliners and to the staff of the Philippine General Hospital (PGH),” said Ventura. We Power HELP also enabled the donation of mobile phones and tablets to support remote learning in Batangas and Cotabato.
PSC, together with PetroGreen Energy Corporation (PGEC), Maibarara Geothermal Inc. (MGI), and PetroWind Energy Inc. (PWEI) are all subsidiaries of PERC, a publicly-listed energy company and a member of the Yuchengco Group of Companies (YGC).
https://mb.com.ph/2020/12/28/petrosolar-enters-peza-awards-hall-of-fame/
PetroSolar Corporation (PSC) was elevated to the Hall of Fame of PEZA Awards for winning the Outstanding Community Project Award for three consecutive years from 2017 to 2019. The awarding ceremony was held on December 10, 2020 in Pasay City.
PEZA cited the efforts of PSC in strengthening relationship with its partner communities, a total of 11 barangays in Hacienda Luisita, Tarlac City. PGEC Environmental and Community Relations Manager, Yrel V. Ventura, explains that PSC’s efforts focused on systematic approach to health, education, and livelihood programs, with the goal of building progressive and peaceful communities.
“Our efforts would not have come to fruition without the constant dialogue and synergy with our communities, the local government units and agencies, who have consistently supported our programs,” said Ventura.
Ventura also shared that PSC’s community projects were designed based on a socio demographic survey conducted in 2016 within the said barangays to assess the needs, resources, and opportunities in the area. PSC’s flagship livelihood project for chili farmers was recognized by the Department of Agriculture (DA) to be a learning hub in the province.
“We Power HELP”
PSC’s community projects and other Corporate Social Responsibility (CSR) initiatives are implemented under We Power HELP (Health Education and Livelihood Program) banner of its parent Company, PetroEnery Resource Corporation (PERC). “Our CSR efforts began as early as 2008 when PERC supported secondary public education and teachers training in Science, Math, and English. Over the years, the Program evolved to include health and livelihood in terms of focus, and to be more inclusive and participatory in terms of implementation,” said Ventura.
We Power HELP projects are implemented in Batangas, Aklan, Tarlac, Palawan, and Mindanao, and include medical missions and nutrition campaign, Adopt-a-School, trainings for teachers, scholarships, livelihood projects for women and farmers, and crisis and disaster response.
“Earlier this year we helped families affected by Taal eruption and typhoons. We also donated food and protective equipment to our LGU frontliners and to the staff of the Philippine General Hospital (PGH),” said Ventura. We Power HELP also enabled the donation of mobile phones and tablets to support remote learning in Batangas and Cotabato.
PSC, together with PetroGreen Energy Corporation (PGEC), Maibarara Geothermal Inc. (MGI), and PetroWind Energy Inc. (PWEI) are all subsidiaries of PERC, a publicly-listed energy company and a member of the Yuchengco Group of Companies (YGC).
P7.09-B project seen to stabilize power transmission in Mindanao
By NGCP Published on December 28, 2020
https://pia.gov.ph/index.php/news/articles/1062482
CAGAYAN DE ORO CITY, Dec. 28 (PIA)--The National Grid Corporation of the Philippines (NGCP) recently energized the Toril-Bunawan 230kV transmission line, the final component of its Mindanao 230 kiloVolt (kV) backbone project.
This will secure the reliability of power transmission services in the entire Mindanao.
As one of NGCP's critical projects, the Mindanao backbone will connect bulk generation from the northern and southern parts of Mindanao and ensure stable and continuous power from Lanao del Norte, passing through Misamis Oriental and Bukidnon, all the way to Davao del Sur and Davao Occidental.
Among the generating facilities which will connect to the line are the GNPower Kauswagan Clean Coal-Fired Power Plant, Therma South Incorporated Power Plant, and San Miguel Consolidated Power Corporation, with a total combined capacity of 1,440MW.
With an ERC-approved cost of P7.09 billion, the project involves the construction of the Matanao-Toril 230kV and Toril-Bunawan 230kV transmission lines, the upgrade of the Balo-i-Villanueva-Maramag- Bunawan line from 138kV to 230kV, as well as the upgrade of its substations in Malita, Matanao, Toril, Bunawan, Balo-i, Villanueva, and Maramag.
Energization of the project components started with the power transformer in Villanueva Substation and Maramag-Villanueva 230kV Line 2 in September 2019, while the Balo-i-Villanueva Lines 1 and 2 were energized in September and October of the same year. Transformers in Bunawan Substation and the Maramag-Bunawan 230kV lines were energized also in October 2019. This was followed by the energization of another new transformer in Villanueva Substation and the Maramag-Villanueva Line 1 in November 2019, while a power transformer in Toril Substation was energized shortly after in the same month.
The Matanao-Toril 230kV Lines 1 and 2 were energized in December 2019 and January 2020, respectively, while the Matanao-Culaman 230kV Lines 1 and 2 were energized in the same period. The final component, the Toril-Bunawan 230kV Lines 1 and 2, were energized in November 2020, despite the difficulties posed by the varying lockdown protocols implemented across the country.
“With this completion, the line will supplement the existing Davao-Toril-Matanao 138kV transmission line in transmitting any and all available and incoming generation, ensuring transmission service reliability for the entire region,” said NGCP.
Apart from this, the Mindanao 230kV Backbone project is an integral part of NGCP’s Mindanao-Visayas Interconnection Project (MVIP), which will link the Visayas and Mindanao islands and realize sharing of power within the entire country. “The Mindanao Backbone is critical to the MVIP because through this project, the new transmission line will accommodate the capacities needed to fully support and utilize the capabilities of the interconnection,” stated the company.
NGCP is a Filipino-led, privately owned company in charge of operating, maintaining, and developing the country’s power grid, led by majority shareholders and Vice Chairman of the Board Henry Sy, Jr. and Co-Vice Chairman Robert Coyiuto, Jr. (NGCP/PIA10)
https://pia.gov.ph/index.php/news/articles/1062482
CAGAYAN DE ORO CITY, Dec. 28 (PIA)--The National Grid Corporation of the Philippines (NGCP) recently energized the Toril-Bunawan 230kV transmission line, the final component of its Mindanao 230 kiloVolt (kV) backbone project.
This will secure the reliability of power transmission services in the entire Mindanao.
As one of NGCP's critical projects, the Mindanao backbone will connect bulk generation from the northern and southern parts of Mindanao and ensure stable and continuous power from Lanao del Norte, passing through Misamis Oriental and Bukidnon, all the way to Davao del Sur and Davao Occidental.
Among the generating facilities which will connect to the line are the GNPower Kauswagan Clean Coal-Fired Power Plant, Therma South Incorporated Power Plant, and San Miguel Consolidated Power Corporation, with a total combined capacity of 1,440MW.
With an ERC-approved cost of P7.09 billion, the project involves the construction of the Matanao-Toril 230kV and Toril-Bunawan 230kV transmission lines, the upgrade of the Balo-i-Villanueva-Maramag- Bunawan line from 138kV to 230kV, as well as the upgrade of its substations in Malita, Matanao, Toril, Bunawan, Balo-i, Villanueva, and Maramag.
Energization of the project components started with the power transformer in Villanueva Substation and Maramag-Villanueva 230kV Line 2 in September 2019, while the Balo-i-Villanueva Lines 1 and 2 were energized in September and October of the same year. Transformers in Bunawan Substation and the Maramag-Bunawan 230kV lines were energized also in October 2019. This was followed by the energization of another new transformer in Villanueva Substation and the Maramag-Villanueva Line 1 in November 2019, while a power transformer in Toril Substation was energized shortly after in the same month.
The Matanao-Toril 230kV Lines 1 and 2 were energized in December 2019 and January 2020, respectively, while the Matanao-Culaman 230kV Lines 1 and 2 were energized in the same period. The final component, the Toril-Bunawan 230kV Lines 1 and 2, were energized in November 2020, despite the difficulties posed by the varying lockdown protocols implemented across the country.
“With this completion, the line will supplement the existing Davao-Toril-Matanao 138kV transmission line in transmitting any and all available and incoming generation, ensuring transmission service reliability for the entire region,” said NGCP.
Apart from this, the Mindanao 230kV Backbone project is an integral part of NGCP’s Mindanao-Visayas Interconnection Project (MVIP), which will link the Visayas and Mindanao islands and realize sharing of power within the entire country. “The Mindanao Backbone is critical to the MVIP because through this project, the new transmission line will accommodate the capacities needed to fully support and utilize the capabilities of the interconnection,” stated the company.
NGCP is a Filipino-led, privately owned company in charge of operating, maintaining, and developing the country’s power grid, led by majority shareholders and Vice Chairman of the Board Henry Sy, Jr. and Co-Vice Chairman Robert Coyiuto, Jr. (NGCP/PIA10)
Monday, December 28, 2020
Moratorium may exempt coal expansion projects
Published December 28, 2020, 5:00 AM by Myrna M. Velasco
https://mb.com.ph/2020/12/28/moratorium-may-exempt-coal-expansion-projects/
The blueprinted expansion projects in coal-fired power installations are being mulled to be excluded from the coal moratorium declaration of the Department of Energy, according to Director Mario C. Marasigan of the agency’s Electric Power Industry Management Bureau.
He told reporters that coal expansion is are among the key points of contention still being fleshed out in the Circular that the DOE will be issuing relative to the coal moratorium declaration.
The other ventures not covered by the moratorium are those that were classified “committed” projects; as well as the indicative projects that were already endorsed and had so far started groundwork at project sites.
“Our hierarchy is: the committed projects that already have endorsements, then we have committed and indicative projects that already have permits, endorsements and groundwork; then we are looking into the expansion projects of existing plants,” he noted, as to the scope of projects that shall not be covered by the moratorium.
On expansion ventures, he expounded that what’s being scrutinized by the DOE is if these were part of the original proposed plans of the project sponsors – but if not, then they shall be disqualified.
In the updated Power Development Plan (PDP), targeted coal project installations to year 2030 would still hover at 9,550 megawatts – although the build-up is apparently coming at a relatively slow pace versus other technologies like gas and renewables.
Marasigan said the energy department has not come up with any definitive list yet which power projects shall be excluded and which shall be covered by the moratorium, hence, the draft Circular to be issued by the DOE on this is still being fine-tuned.
“We have continuing simulations because there are existing projects with expansion plans, so we have to determine if the expansion projects are really part of the original plan and that they’re not just trying to evade the moratorium,” Marasigan said.
Energy Secretary Alfonso G. Cusi said he already approved the draft of the Circular for the moratorium, but he admitted the final form is still formulated by relevant bureaus at the department.
“The Circular is still being edited. What I approved was the draft and it’s still being edited,” he indicated, while also noting that the department’s preference now is a Circular issuance instead of the earlier plan of just issuing an advisory.
At this stage, the energy chief reiterated “basically, we’re not accepting anymore any new applications – we’re just processing now the committed projects as part of our PEP (Philippine Energy Plan), our national power development program until 2040.”
Cusi nevertheless admitted that since the coal moratorium will just be firmed up through a Circular, that can easily be changed or revoked by his successor.
“That will depend on the next administration. What we do here is not a law. If they (next administration) will open it, there’s nothing we can do about it,” he stressed.
https://mb.com.ph/2020/12/28/moratorium-may-exempt-coal-expansion-projects/
The blueprinted expansion projects in coal-fired power installations are being mulled to be excluded from the coal moratorium declaration of the Department of Energy, according to Director Mario C. Marasigan of the agency’s Electric Power Industry Management Bureau.
He told reporters that coal expansion is are among the key points of contention still being fleshed out in the Circular that the DOE will be issuing relative to the coal moratorium declaration.
The other ventures not covered by the moratorium are those that were classified “committed” projects; as well as the indicative projects that were already endorsed and had so far started groundwork at project sites.
“Our hierarchy is: the committed projects that already have endorsements, then we have committed and indicative projects that already have permits, endorsements and groundwork; then we are looking into the expansion projects of existing plants,” he noted, as to the scope of projects that shall not be covered by the moratorium.
On expansion ventures, he expounded that what’s being scrutinized by the DOE is if these were part of the original proposed plans of the project sponsors – but if not, then they shall be disqualified.
In the updated Power Development Plan (PDP), targeted coal project installations to year 2030 would still hover at 9,550 megawatts – although the build-up is apparently coming at a relatively slow pace versus other technologies like gas and renewables.
Marasigan said the energy department has not come up with any definitive list yet which power projects shall be excluded and which shall be covered by the moratorium, hence, the draft Circular to be issued by the DOE on this is still being fine-tuned.
“We have continuing simulations because there are existing projects with expansion plans, so we have to determine if the expansion projects are really part of the original plan and that they’re not just trying to evade the moratorium,” Marasigan said.
Energy Secretary Alfonso G. Cusi said he already approved the draft of the Circular for the moratorium, but he admitted the final form is still formulated by relevant bureaus at the department.
“The Circular is still being edited. What I approved was the draft and it’s still being edited,” he indicated, while also noting that the department’s preference now is a Circular issuance instead of the earlier plan of just issuing an advisory.
At this stage, the energy chief reiterated “basically, we’re not accepting anymore any new applications – we’re just processing now the committed projects as part of our PEP (Philippine Energy Plan), our national power development program until 2040.”
Cusi nevertheless admitted that since the coal moratorium will just be firmed up through a Circular, that can easily be changed or revoked by his successor.
“That will depend on the next administration. What we do here is not a law. If they (next administration) will open it, there’s nothing we can do about it,” he stressed.
Energy sector must boost supply ahead of demand
Danessa Rivera (The Philippine Star) - December 28, 2020 - 12:00am
https://www.philstar.com/business/2020/12/28/2066556/energy-sector-must-boost-supply-ahead-demand
MANILA, Philippines — As energy demand declined amid the COVID-19 pandemic, the country’s energy chief said the sector has the opportunity to catch up and boost supply prior to the resurgence of demand once the vaccine is rolled out and the economy fully reopens.
Energy Secretary Alfonso Cusi said the pandemic has stalled growth in the sector and has given the energy sector an opportunity to boost supply. “This pandemic, as far as energy supply is concerned, is both a problem and an opportunity. It’s an opportunity for us to do catch up work in really boosting our supply,” he said.
This is because demand for electricity and oil dropped drastically this year due to the pandemic-induced drop in economic activity.
“We really need to do our share of the work to help in the economic recovery. When it comes to power, we have to make sure that we are ready to build up the supply. We cannot have intermittent supply in our economic recovery. For oil, we’re pushing for exploration of our indigenous resources,” Cusi said.
For next year, Cusi expects a higher demand for oil, but it may still not reach the pre-pandemic level immediately.
“Demand for oil dropped because our people are not able to move. Whether it will go back to the 2019 level, it’s very difficult to say. But I think it will be not at that level, but it will be within the range, especially if our population will be vaccinated,” Cusi said.
“We’re also seeing the opening up of the transportation sector, where even the provincial buses are allowed to operate, so we expect an increase in demand in petroleum. But it may not go back immediately to the 2019 level,” he said.
For the power sector, electricity demand might match the 2019 numbers next year.
“As far as power demand is concerned, there will be a surge when we fully reopen the economy,” Cusi said.
For now, the DOE is confident that the country’s power and fuel supply remains stable and reliable.
“We have a healthy and robust supply mix in place, where energy players are well aware of the increasing demand during this season,” Cusi said.
At the same time, the Energy chief said the energy sector would continue to take an active role as the government gradually reopens the economy.
“We continue to review our policies to make sure they are responsive to our current needs as we strive to encourage foreign investors to consider the Philippines as their next destination,” he said.
https://www.philstar.com/business/2020/12/28/2066556/energy-sector-must-boost-supply-ahead-demand
MANILA, Philippines — As energy demand declined amid the COVID-19 pandemic, the country’s energy chief said the sector has the opportunity to catch up and boost supply prior to the resurgence of demand once the vaccine is rolled out and the economy fully reopens.
Energy Secretary Alfonso Cusi said the pandemic has stalled growth in the sector and has given the energy sector an opportunity to boost supply. “This pandemic, as far as energy supply is concerned, is both a problem and an opportunity. It’s an opportunity for us to do catch up work in really boosting our supply,” he said.
This is because demand for electricity and oil dropped drastically this year due to the pandemic-induced drop in economic activity.
“We really need to do our share of the work to help in the economic recovery. When it comes to power, we have to make sure that we are ready to build up the supply. We cannot have intermittent supply in our economic recovery. For oil, we’re pushing for exploration of our indigenous resources,” Cusi said.
For next year, Cusi expects a higher demand for oil, but it may still not reach the pre-pandemic level immediately.
“Demand for oil dropped because our people are not able to move. Whether it will go back to the 2019 level, it’s very difficult to say. But I think it will be not at that level, but it will be within the range, especially if our population will be vaccinated,” Cusi said.
“We’re also seeing the opening up of the transportation sector, where even the provincial buses are allowed to operate, so we expect an increase in demand in petroleum. But it may not go back immediately to the 2019 level,” he said.
For the power sector, electricity demand might match the 2019 numbers next year.
“As far as power demand is concerned, there will be a surge when we fully reopen the economy,” Cusi said.
For now, the DOE is confident that the country’s power and fuel supply remains stable and reliable.
“We have a healthy and robust supply mix in place, where energy players are well aware of the increasing demand during this season,” Cusi said.
At the same time, the Energy chief said the energy sector would continue to take an active role as the government gradually reopens the economy.
“We continue to review our policies to make sure they are responsive to our current needs as we strive to encourage foreign investors to consider the Philippines as their next destination,” he said.
NEA orders ailing power cooperatives to step up operations
Danessa Rivera (The Philippine Star) - December 27, 2020 - 12:00am
https://www.philstar.com/business/2020/12/27/2066396/nea-orders-ailing-power-cooperatives-step-operations
MANILA, Philippines — State-run National Electrification Administration (NEA) wants ailing power coops to reassess and step up their operations after four electric cooperatives (ECs) remained laggards in the agency’s annual assessment.
The agency had previously listed seven remaining ‘ailing’ ECs in the past.
But in the 2019 performance assessment of NEA, four power coops namely Albay Electric Cooperative Inc. (ALECO), Basilan Electric Cooperative Inc. (BASELCO), Lanao del Sur Electric Cooperative Inc. (LASURECO), and Tawi-Tawi Electric Cooperative Inc. (TAWELCO), remained as Category D power coops.
The three ECs have already improved, where Abra Electric Cooperative (ABRECO) progressed from Category D to C, while Masbate Electric Cooperative Inc. (MASELCO) and Sulu Electric Cooperative Inc. (SULECO) maintained their Category C status.
“ECs that need further improvements in the overall performance should reassess their financial, institutional, and technical operations; implement more aggressive strategies and activities, and closely monitor their progress to address major issues and concerns,” NEA administrator Edgardo Masongsong said.
In the latest assessment, NEA said 85 out of 121 ECs obtained AAA rating, the highest score given by the agency to ECs that indicates the power distribution utilities’ full compliance on all parameters.
Of the 85, 30 ECs garnered a score of 100 points in all the performance parameters.
All ECs in Regions I (Ilocos Region), VI (Western Visayas), VIII (Eastern Visayas), and Caraga notched the AAA status, maintaining their excellent performance.
Results of the 2019 overall performance assessment also showed that 85 percent or 103 ECs were evaluated by the NEA as either AAA, AA, or A status. At least 11 ECs improved in their scores in all performance levels.
NEA evaluates and determines the overall performance ratings of all ECs annually.
“ECs that need further improvements in the overall performance should reassess their financial, institutional, and technical operations; implement more aggressive strategies and activities, and closely monitor their progress to address major issues and concerns,” NEA administrator Edgardo Masongsong said.
On the size classification of ECs, the number of mega large ECs increased from 66 to 72 while the number of extra large ECs decreased from 32 to 26. The number of ECs classified as large remained at 17. At least two ECs were classified as medium and four ECs as small.
Six ECs expanded their power market coverage resulting in the improvement of their size classification from extra large to mega Large, namely Zambales II Electric Cooperative, OMECO, SORECO I, Iloilo III Electric Cooperative, Eastern Samar Electric Cooperative and Maguindanao Electric Cooperative.
The results of the 2019 EC overall performance assessment and size classification will serve as the basis for the adjustments of salaries, benefits, allowances and incentives of EC officials and employees.
https://www.philstar.com/business/2020/12/27/2066396/nea-orders-ailing-power-cooperatives-step-operations
MANILA, Philippines — State-run National Electrification Administration (NEA) wants ailing power coops to reassess and step up their operations after four electric cooperatives (ECs) remained laggards in the agency’s annual assessment.
The agency had previously listed seven remaining ‘ailing’ ECs in the past.
But in the 2019 performance assessment of NEA, four power coops namely Albay Electric Cooperative Inc. (ALECO), Basilan Electric Cooperative Inc. (BASELCO), Lanao del Sur Electric Cooperative Inc. (LASURECO), and Tawi-Tawi Electric Cooperative Inc. (TAWELCO), remained as Category D power coops.
The three ECs have already improved, where Abra Electric Cooperative (ABRECO) progressed from Category D to C, while Masbate Electric Cooperative Inc. (MASELCO) and Sulu Electric Cooperative Inc. (SULECO) maintained their Category C status.
“ECs that need further improvements in the overall performance should reassess their financial, institutional, and technical operations; implement more aggressive strategies and activities, and closely monitor their progress to address major issues and concerns,” NEA administrator Edgardo Masongsong said.
In the latest assessment, NEA said 85 out of 121 ECs obtained AAA rating, the highest score given by the agency to ECs that indicates the power distribution utilities’ full compliance on all parameters.
Of the 85, 30 ECs garnered a score of 100 points in all the performance parameters.
All ECs in Regions I (Ilocos Region), VI (Western Visayas), VIII (Eastern Visayas), and Caraga notched the AAA status, maintaining their excellent performance.
Results of the 2019 overall performance assessment also showed that 85 percent or 103 ECs were evaluated by the NEA as either AAA, AA, or A status. At least 11 ECs improved in their scores in all performance levels.
NEA evaluates and determines the overall performance ratings of all ECs annually.
“ECs that need further improvements in the overall performance should reassess their financial, institutional, and technical operations; implement more aggressive strategies and activities, and closely monitor their progress to address major issues and concerns,” NEA administrator Edgardo Masongsong said.
On the size classification of ECs, the number of mega large ECs increased from 66 to 72 while the number of extra large ECs decreased from 32 to 26. The number of ECs classified as large remained at 17. At least two ECs were classified as medium and four ECs as small.
Six ECs expanded their power market coverage resulting in the improvement of their size classification from extra large to mega Large, namely Zambales II Electric Cooperative, OMECO, SORECO I, Iloilo III Electric Cooperative, Eastern Samar Electric Cooperative and Maguindanao Electric Cooperative.
The results of the 2019 EC overall performance assessment and size classification will serve as the basis for the adjustments of salaries, benefits, allowances and incentives of EC officials and employees.
WCA: Coal still deemed essential by many countries
By: Ronnel Domingo - 05:12 AM December 28, 2020
https://business.inquirer.net/314810/wca-coal-still-deemed-essential-by-many-countries
The continued use of coal for power generation cannot be dismissed, especially since many countries are looking to it as key to their economic recovery from the ravages of the pandemic, according to a global industry lobby group.
The United Kingdom-based World Coal Association (WCA) was reacting to a report of Paris-based International Energy Agency (IEA). The report, Coal 2020, stated that global coal demand was primed for a rebound in 2021, riding on the expected global economic recovery. However, the IEA also noted that there was little sign that the world’s coal consumption would decline substantially in the coming years, with rising demand in some Asian economies offsetting declines elsewhere. “In the acute stages of COVID-19, many countries identified coal as essential, critical to their economies during the pandemic and key to their recovery,” WCA chief executive Michelle Manook said in a statement.
“The importance of coal to countries particularly across Asia is clear and we cannot dismiss the rights of developing nations to choose stable, reliable and affordable energy to support recovery and economic growth,” Manook said.
She said coal would continue to be a significant contributor to development, through its role in electricity “and in producing the building blocks of our societies,” referring to steel and cement.
“There is no one size fits all solution. Many countries have identified a role for clean coal technologies in their Paris Agreement pledges,” Manook said.
“This doesn’t mean transitioning away from coal.” “Instead, they are creating diverse, affordable and resilient fuel systems, reducing the emissions profile of coal in the long-term through the deployment of clean coal technologies.”
https://business.inquirer.net/314810/wca-coal-still-deemed-essential-by-many-countries
The continued use of coal for power generation cannot be dismissed, especially since many countries are looking to it as key to their economic recovery from the ravages of the pandemic, according to a global industry lobby group.
The United Kingdom-based World Coal Association (WCA) was reacting to a report of Paris-based International Energy Agency (IEA). The report, Coal 2020, stated that global coal demand was primed for a rebound in 2021, riding on the expected global economic recovery. However, the IEA also noted that there was little sign that the world’s coal consumption would decline substantially in the coming years, with rising demand in some Asian economies offsetting declines elsewhere. “In the acute stages of COVID-19, many countries identified coal as essential, critical to their economies during the pandemic and key to their recovery,” WCA chief executive Michelle Manook said in a statement.
“The importance of coal to countries particularly across Asia is clear and we cannot dismiss the rights of developing nations to choose stable, reliable and affordable energy to support recovery and economic growth,” Manook said.
She said coal would continue to be a significant contributor to development, through its role in electricity “and in producing the building blocks of our societies,” referring to steel and cement.
“There is no one size fits all solution. Many countries have identified a role for clean coal technologies in their Paris Agreement pledges,” Manook said.
“This doesn’t mean transitioning away from coal.” “Instead, they are creating diverse, affordable and resilient fuel systems, reducing the emissions profile of coal in the long-term through the deployment of clean coal technologies.”
Hike in RE installations uncertain
Published December 28, 2020, 6:00 AM by Myrna M. Velasco
https://mb.com.ph/2020/12/28/hike-in-re-installations-uncertain/
The Department of Energy (DOE) has forthrightly stated that it has not given any approval yet to the proposal of the National Renewable Energy Board (NREB) to hike renewable energy (RE) installations to annual increment of 2.0 to 2.2-percent from what is presently cast at 1.0-percent increment.
“There’s no approval yet from the Secretary to increase it (RE installations) to a higher percentage,” Energy Assistant Secretary Redentor E. Delola said, in reference to the annual escalation in RE project developments that must be integrated into the Renewable Portfolio Standards (RPS) policy for the sector.
“On what NREB was saying: first on the increase in the percentage, we’re still studying that because they’re saying that the 1.0-percent annual increment will not be able to reach the 35% target. So we’re looking at the figures right now, but as it stands, we’re still at 1.0-percent increment,” the energy official said.
Energy Secretary Alfonso G. Cusi similarly indicated that in his meeting with NREB Chairperson Monalisa Dimalanta last December 21, his instruction is for the board to assess first the outcome of the mid-2021 auction of the 2,000 megawatts capacity under RPS before firming up any plans to build up the annual increment to a higher percentage.
“Rather than saying how much we’re going to increase, let’s see first what would be the output of the auction,” the energy chief stressed.
The renewable energy board previously stated that RE installations must be stepped up to at least 2.0-percent increment yearly, if the country has to meet year 2030 target of 35-percent RE share in the mix; and a higher 56-percent share by 2040 for total capacity addition of 22,400MW.
On year one of RE projects rollout under the RPS, Energy Undersecretary Felix William Fuentebella noted that the mandated participants – primarily the distribution utilities — are still compliant on their required procurement of RE capacities. Year one reference is the kick-off of RPS policy this 2020.
For years 2 and 3, he noted that the 2,000MW RE capacity for auction next year will address the RPS requirement — and the bidding terms of reference is now being drafted by the Renewable Energy Management Bureau (REMB) of the energy department.
Relative to the P0.23 per kilowatt hour (kWh) rate hike impact of higher increment of RE installations, Delola emphasized that it is part of the study being carried out by the DOE, including ancillary services and cost assumptions in case coal share in the power mix will be reduced because of the moratorium enforcement on the technology.
“We’re validating the figures. There are runs being conducted by the bureau now including the run for the impact of the moratorium on coal – what will be its effect on LCOE (levelized cost of energy) if we increase the total RE share by increasing the RPS requirement,” he explained.
Delola qualified “we’re still doing evaluation on the figures of NREB, because in what NREB does, it calls for DOE policy issuances, that’s why we’re studying it.”
https://mb.com.ph/2020/12/28/hike-in-re-installations-uncertain/
The Department of Energy (DOE) has forthrightly stated that it has not given any approval yet to the proposal of the National Renewable Energy Board (NREB) to hike renewable energy (RE) installations to annual increment of 2.0 to 2.2-percent from what is presently cast at 1.0-percent increment.
“There’s no approval yet from the Secretary to increase it (RE installations) to a higher percentage,” Energy Assistant Secretary Redentor E. Delola said, in reference to the annual escalation in RE project developments that must be integrated into the Renewable Portfolio Standards (RPS) policy for the sector.
“On what NREB was saying: first on the increase in the percentage, we’re still studying that because they’re saying that the 1.0-percent annual increment will not be able to reach the 35% target. So we’re looking at the figures right now, but as it stands, we’re still at 1.0-percent increment,” the energy official said.
Energy Secretary Alfonso G. Cusi similarly indicated that in his meeting with NREB Chairperson Monalisa Dimalanta last December 21, his instruction is for the board to assess first the outcome of the mid-2021 auction of the 2,000 megawatts capacity under RPS before firming up any plans to build up the annual increment to a higher percentage.
“Rather than saying how much we’re going to increase, let’s see first what would be the output of the auction,” the energy chief stressed.
The renewable energy board previously stated that RE installations must be stepped up to at least 2.0-percent increment yearly, if the country has to meet year 2030 target of 35-percent RE share in the mix; and a higher 56-percent share by 2040 for total capacity addition of 22,400MW.
On year one of RE projects rollout under the RPS, Energy Undersecretary Felix William Fuentebella noted that the mandated participants – primarily the distribution utilities — are still compliant on their required procurement of RE capacities. Year one reference is the kick-off of RPS policy this 2020.
For years 2 and 3, he noted that the 2,000MW RE capacity for auction next year will address the RPS requirement — and the bidding terms of reference is now being drafted by the Renewable Energy Management Bureau (REMB) of the energy department.
Relative to the P0.23 per kilowatt hour (kWh) rate hike impact of higher increment of RE installations, Delola emphasized that it is part of the study being carried out by the DOE, including ancillary services and cost assumptions in case coal share in the power mix will be reduced because of the moratorium enforcement on the technology.
“We’re validating the figures. There are runs being conducted by the bureau now including the run for the impact of the moratorium on coal – what will be its effect on LCOE (levelized cost of energy) if we increase the total RE share by increasing the RPS requirement,” he explained.
Delola qualified “we’re still doing evaluation on the figures of NREB, because in what NREB does, it calls for DOE policy issuances, that’s why we’re studying it.”
Excelerate LNG permit extended
By Lenie Lectura December 28, 2020
https://businessmirror.com.ph/2020/12/28/excelerate-lng-permit-extended/
The Department of Energy (DOE) has extended the Notice to Proceed (NTP) permit to develop the LNG (liquefied natural gas) project of Texas-based Excelerate Energy LP (Excelerate).
“I already signed the extension of Excelerate. If not early this month, late last month,” said Energy Secretary Alfonso G. Cusi.
The agency first issued the NTP to develop a floating LNG import terminal in Batangas Bay to Excelerate in September last year. The permit expired this year but was “just recently” extended by the agency, according to an official of the company’s local partner when sought for confirmation.
“Our NTP just got extended. I believe it’s 3 months from date of receipt,” said Michael Acebedo Lopez, Topline Energy Executive Vice President.
Excelerate is in the final phases of preparing to commence construction on the Filipinas LNG Gateway project, the country’s first open access LNG import terminal.
The terminal will utilize Excelerate’s state-of-the-art offshore Floating Storage Regasification Unit (FSRU) technology, specifically designed to perform in extreme weather conditions. The technology has been proven at Excelerate’s operations in the United States within the Gulf of Mexico and North Atlantic, Israel, and most recently, the Bay of Bengal.
With import capacity of about 5 million tons of LNG per annum, the project will be able to supply fuel for up to 4,000megawatts (MW) of baseload power generation, allowing it to service multiple power plant customers in Luzon.
The LNG project follows a Third Party Access (TPA) model, whereby LNG import capacity is marketed to multiple gas users in the region on an open and transparent basis. This is in contrast to the “Own Use” model where separate LNG terminals are being built for each independent power plant.
Unlike comparative “Own Use” solutions, the “TPA” model allows gas users to enter into shorter-term contracts for quantities that meet their specific requirements. This method is considered highly efficient as there is less “wasted” capacity due to underutilization.
Fuel demand not seen to return to 2019 levels
By Jordeene B. Lagare December 28, 2020
https://www.manilatimes.net/2020/12/28/business/business-top/fuel-demand-not-seen-to-return-to-2019-levels/818893/
FUEL demand in the Philippines is seen to increase again once the economy fully reopens.
This photo shows a Shell fuel station in Metro Manila. provincial buses are allowed to THE MANILA TIMES FILE PHOTO
However, a government official said the demand for petroleum products is not projected to return to its 2019 levels.
“For domestic consumption, I think there will be an increase in domestic consumption pagbukas ng economy (once our economy reopens),” said Energy Secretary Alfonso Cusi.
Data from the Department of Energy (DoE) showed that fuel demand decreased by 22.8 percent in the first half of 2020 due to the reduced economic activity from lockdown and travel restrictions caused by the coronavirus disease 2019 (Covid-19) pandemic.
But Cusi said it is “very difficult” to say whether or not oil demand will return to the 2019 levels. “But it may not go back immediately to the 2019 level.”
“But I think it will be, not at that level, but it will be within the range, especially if the vaccine (is available), if our population will be vaccinated. Magkakaroon yan ng (there will be a) demand,” he added.
A higher demand in petroleum products is also expected as the transportation sector reopens.
“Also, nagkakaroon tayo ng opening in the transportation sector (the transportation sector is reopening), where even the provincial buses are allowed to operate, so magkakaroon na tayo ng (we will see an) increase in demand in petroleum,” Cusi said.
Nonetheless, Cusi said electricity demand is projected to surge once the economy has fully reopened.
“Pagdating dito sa power, sa energy, we have to make sure that we are ready, building up the supply. Hindi puwede yung intermittent supply in our economic recovery (We have to make sure that we are ready and we have sufficient supply. We cannot afford to have an intermittent power supply as our economy recovers),” Cusi said.
The Covid-19 pandemic, said Cusi, presents both “a problem and an opportunity” to do the catchup work in bolstering the country’s power supply.
At the onset of the pandemic, the DoE observed a decline of 30 percent in power demand.
https://www.manilatimes.net/2020/12/28/business/business-top/fuel-demand-not-seen-to-return-to-2019-levels/818893/
FUEL demand in the Philippines is seen to increase again once the economy fully reopens.
This photo shows a Shell fuel station in Metro Manila. provincial buses are allowed to THE MANILA TIMES FILE PHOTO
However, a government official said the demand for petroleum products is not projected to return to its 2019 levels.
“For domestic consumption, I think there will be an increase in domestic consumption pagbukas ng economy (once our economy reopens),” said Energy Secretary Alfonso Cusi.
Data from the Department of Energy (DoE) showed that fuel demand decreased by 22.8 percent in the first half of 2020 due to the reduced economic activity from lockdown and travel restrictions caused by the coronavirus disease 2019 (Covid-19) pandemic.
But Cusi said it is “very difficult” to say whether or not oil demand will return to the 2019 levels. “But it may not go back immediately to the 2019 level.”
“But I think it will be, not at that level, but it will be within the range, especially if the vaccine (is available), if our population will be vaccinated. Magkakaroon yan ng (there will be a) demand,” he added.
A higher demand in petroleum products is also expected as the transportation sector reopens.
“Also, nagkakaroon tayo ng opening in the transportation sector (the transportation sector is reopening), where even the provincial buses are allowed to operate, so magkakaroon na tayo ng (we will see an) increase in demand in petroleum,” Cusi said.
Nonetheless, Cusi said electricity demand is projected to surge once the economy has fully reopened.
“Pagdating dito sa power, sa energy, we have to make sure that we are ready, building up the supply. Hindi puwede yung intermittent supply in our economic recovery (We have to make sure that we are ready and we have sufficient supply. We cannot afford to have an intermittent power supply as our economy recovers),” Cusi said.
The Covid-19 pandemic, said Cusi, presents both “a problem and an opportunity” to do the catchup work in bolstering the country’s power supply.
At the onset of the pandemic, the DoE observed a decline of 30 percent in power demand.
DoE sees pickup in oil demand as transport sector opens further
https://www.msn.com/en-ph/money/business/doe-sees-pickup-in-oil-demand-as-transport-sector-opens-further/ar-BB1cguG0
DEPARTMENT of Energy (DoE) Secretary Alfonso G. Cusi said demand for oil products will be higher in 2021 as the transportation sector continues to open and as the economy recovers.
“Sa oil sector…magkakaroon iyon ng demand. Also, nagkakaroon tayo ng opening in the transportation sector where even the provincial buses are being allowed to operate (There will be demand in the oil sector. The transportation sector is opening up. Even provincial buses are being allowed to operate),” Mr. Cusi said at a briefing on Dec. 21.
Demand overall will also rise as the economy recovers, Mr. Cusi said.
He added that overseas Filipino workers (OFWs), including health workers and seafarers, will contribute to the recovery if the government increases deployment.
“Pag nag-deploy tayo (when we deploy workers)…then that will help in our economic recovery,” he said, noting that OFWs were not able to travel for work this year, adding to the weak demand for oil.
Asked for an outlook on power, Mr. Cusi said that the DoE is carrying on with building power capacity, noting that the current supply “barely” meets demand. “We have to make sure that we are ready, but we are already building up the supply. Hindi pwede ‘yung intermittent supply (It won’t do to have intermittent supply) during our economic recovery,” he said.
“I think as far as the power demand is concerned, there will be (a) surge when we fully open our economy and the energy family must be ready to meet that,” he added.
At the same briefing, Mr. Cusi said Petron Corp.’s closure of its Bataan oil refinery was a business decision.
The company announced this month that it would shutter its 180,000-barrel-per-day crude oil refinery, the country’s only remaining refinery. Mr. Cusi also said that the closure would not affect the fuel supply. — Angelica Y. Yang
DEPARTMENT of Energy (DoE) Secretary Alfonso G. Cusi said demand for oil products will be higher in 2021 as the transportation sector continues to open and as the economy recovers.
“Sa oil sector…magkakaroon iyon ng demand. Also, nagkakaroon tayo ng opening in the transportation sector where even the provincial buses are being allowed to operate (There will be demand in the oil sector. The transportation sector is opening up. Even provincial buses are being allowed to operate),” Mr. Cusi said at a briefing on Dec. 21.
Demand overall will also rise as the economy recovers, Mr. Cusi said.
He added that overseas Filipino workers (OFWs), including health workers and seafarers, will contribute to the recovery if the government increases deployment.
“Pag nag-deploy tayo (when we deploy workers)…then that will help in our economic recovery,” he said, noting that OFWs were not able to travel for work this year, adding to the weak demand for oil.
Asked for an outlook on power, Mr. Cusi said that the DoE is carrying on with building power capacity, noting that the current supply “barely” meets demand. “We have to make sure that we are ready, but we are already building up the supply. Hindi pwede ‘yung intermittent supply (It won’t do to have intermittent supply) during our economic recovery,” he said.
“I think as far as the power demand is concerned, there will be (a) surge when we fully open our economy and the energy family must be ready to meet that,” he added.
At the same briefing, Mr. Cusi said Petron Corp.’s closure of its Bataan oil refinery was a business decision.
The company announced this month that it would shutter its 180,000-barrel-per-day crude oil refinery, the country’s only remaining refinery. Mr. Cusi also said that the closure would not affect the fuel supply. — Angelica Y. Yang
Power demand expected to surge once economy fully reopens
posted December 27, 2020 at 06:50 pm by Alena Mae S. Flores
https://manilastandard.net/business/power-technology/343002/power-demand-expected-to-surge-once-economy-fully-reopens.html
The Department of Energy is anticipating an expected increase in power demand once the economy recovers and fully reopens next year with the help of a massive vaccination program.
“For the power sector, we continue to build the capacity… We are trying to prepare the power supply into a level where we will have normal operations already. And you know how it takes time before we build capacity,” Energy Secretary Alfonso Cusi said.
Cusi said power demand was expected to surge when the economy returned to full capacity. “The energy family must be ready to meet that. That will be a big disservice to the country once the economy recovers again, and we lack supply,” the energy chief said.
“And I’ve always been saying, this pandemic, as far as energy supply is concerned, is both a problem and an opportunity. It’s an opportunity for us to do catch-up work in really boosting our supply,” Cusi said.
Peak power demand grew 5.3 percent in 2019 from a year ago. Mindanao registered the highest growth at 8.6 percent, followed by Visayas at 8.3 percent and Luzon at 4.2 percent.
Peak demand in 2019 reached 11,344 megawatts in Luzon, 2,224 MW in the Visayas and 2,013 MW in Mindanaofor a total of 15,581 MW.
Prior to the pandemic, peak demand in Luzon was expected to reach 12,285 MW, 2,419 MW in the Visayas and 2,278 MW in Mindanao totaling 16,692 MW this year.
Energy officials earlier said actual figures showed that peak demand this year was lower than in 2019.
Actual peak demand reached 11,103 MW for Luzon, 2,201 MW for Visayas and 1,977 MW for Mindanao for a total of 15,281 in 2020.
Mindanao posted the highest decline in peak demand at 13 percent, followed by Luzon at 10 percent and Visayas at 9 percent.
Meanwhile, Cusi said oil demand was also expected to grow next year as the Philippines already opened the transportation sector.
“We know that demand for oil dropped because our people were not able to move. Whether it will go back to the 2019 level, it’s very difficult to say,” he said.
Cusi said oil demand was expected to spike once the vaccination program was rolled out to contain the pandemic.
“But it may not go back immediately to the 2019 level. This is the reason also why petroleum players are looking closely on how will they be operating,” he said.
World oil prices plunged early this year because of the impact of the COVID-19 pandemic and the quarantine restrictions, resulting in billions of losses for the oil industry.
https://manilastandard.net/business/power-technology/343002/power-demand-expected-to-surge-once-economy-fully-reopens.html
The Department of Energy is anticipating an expected increase in power demand once the economy recovers and fully reopens next year with the help of a massive vaccination program.
“For the power sector, we continue to build the capacity… We are trying to prepare the power supply into a level where we will have normal operations already. And you know how it takes time before we build capacity,” Energy Secretary Alfonso Cusi said.
Cusi said power demand was expected to surge when the economy returned to full capacity. “The energy family must be ready to meet that. That will be a big disservice to the country once the economy recovers again, and we lack supply,” the energy chief said.
“And I’ve always been saying, this pandemic, as far as energy supply is concerned, is both a problem and an opportunity. It’s an opportunity for us to do catch-up work in really boosting our supply,” Cusi said.
Peak power demand grew 5.3 percent in 2019 from a year ago. Mindanao registered the highest growth at 8.6 percent, followed by Visayas at 8.3 percent and Luzon at 4.2 percent.
Peak demand in 2019 reached 11,344 megawatts in Luzon, 2,224 MW in the Visayas and 2,013 MW in Mindanaofor a total of 15,581 MW.
Prior to the pandemic, peak demand in Luzon was expected to reach 12,285 MW, 2,419 MW in the Visayas and 2,278 MW in Mindanao totaling 16,692 MW this year.
Energy officials earlier said actual figures showed that peak demand this year was lower than in 2019.
Actual peak demand reached 11,103 MW for Luzon, 2,201 MW for Visayas and 1,977 MW for Mindanao for a total of 15,281 in 2020.
Mindanao posted the highest decline in peak demand at 13 percent, followed by Luzon at 10 percent and Visayas at 9 percent.
Meanwhile, Cusi said oil demand was also expected to grow next year as the Philippines already opened the transportation sector.
“We know that demand for oil dropped because our people were not able to move. Whether it will go back to the 2019 level, it’s very difficult to say,” he said.
Cusi said oil demand was expected to spike once the vaccination program was rolled out to contain the pandemic.
“But it may not go back immediately to the 2019 level. This is the reason also why petroleum players are looking closely on how will they be operating,” he said.
World oil prices plunged early this year because of the impact of the COVID-19 pandemic and the quarantine restrictions, resulting in billions of losses for the oil industry.
Do a Meralco, other power firms urged
Saturday, December 26, 2020 Jester P. Manalastas
https://journal.com.ph/news/nation/do-a-meralco/
CHAIRMAN of the House committee on energy and Pampanga Rep. Juan Miguel Arroyo urged electric cooperatives (ECs) and distribution utilities (DUs) nationwide to imitate Manila Electric Company (Meralco) and also extend the disconnection privilege to their customers.
Arroyo made the appeal following the decision of Meralco to extend its disconnection policy for non-payment of electric bills.
According to Arroyo, the ECs and DUs should look for ways on how to grant the same privilege to their customers as that of Meralco.
The House leader thanked Meralco for showing compassion and understanding to Filipinos in their present situation.
Meralco’s no-disconnection policy, though only targeting Meralco consumers with monthly consumptions of 200 kilowatt per hour and below, will benefit more than 3 million electric consumers, comprising about 47 percent of the power giant’s customers.
“As Chairman of the House Committee on Energy, I would request the same from electric cooperatives nationwide as well as other private distribution utilities to benefit the rest of our countrymen,” Arroyo said.
Earlier, Speaker Lord Allan Velasco announced that Meralco has extended its disconnection policy until January 31, 2021 to give consumers more time to settle their unpaid bills which were incurred during the lockdown period.
Meralco’s no-disconnection policy for unpaid bills was supposed to end at the end of December before Velasco stepped in with his request. The extended grace period was confirmed by Meralco president Ray Espinosa.
In addition, Arroyo said that his committee would soon be calling a hearing to help the electric cooperatives and DUs find ways in assisting their clienteles.
“The House Committee on Energy intends to call for a hearing soonest with ECs and private DUs so that we could determine how these ECs and DUs could extend assistance to their clients in light of the current pandemic,” Arroyo said.
“We all need to sacrifice a little to help our country,” he added.
https://journal.com.ph/news/nation/do-a-meralco/
CHAIRMAN of the House committee on energy and Pampanga Rep. Juan Miguel Arroyo urged electric cooperatives (ECs) and distribution utilities (DUs) nationwide to imitate Manila Electric Company (Meralco) and also extend the disconnection privilege to their customers.
Arroyo made the appeal following the decision of Meralco to extend its disconnection policy for non-payment of electric bills.
According to Arroyo, the ECs and DUs should look for ways on how to grant the same privilege to their customers as that of Meralco.
The House leader thanked Meralco for showing compassion and understanding to Filipinos in their present situation.
Meralco’s no-disconnection policy, though only targeting Meralco consumers with monthly consumptions of 200 kilowatt per hour and below, will benefit more than 3 million electric consumers, comprising about 47 percent of the power giant’s customers.
“As Chairman of the House Committee on Energy, I would request the same from electric cooperatives nationwide as well as other private distribution utilities to benefit the rest of our countrymen,” Arroyo said.
Earlier, Speaker Lord Allan Velasco announced that Meralco has extended its disconnection policy until January 31, 2021 to give consumers more time to settle their unpaid bills which were incurred during the lockdown period.
Meralco’s no-disconnection policy for unpaid bills was supposed to end at the end of December before Velasco stepped in with his request. The extended grace period was confirmed by Meralco president Ray Espinosa.
In addition, Arroyo said that his committee would soon be calling a hearing to help the electric cooperatives and DUs find ways in assisting their clienteles.
“The House Committee on Energy intends to call for a hearing soonest with ECs and private DUs so that we could determine how these ECs and DUs could extend assistance to their clients in light of the current pandemic,” Arroyo said.
“We all need to sacrifice a little to help our country,” he added.
Circular on coal plant ban out soon
By Jordeene B. Lagare December 26, 2020
https://www.manilatimes.net/2020/12/26/business/business-top/circular-on-coal-plant-ban-out-soon/817664/
THE Department of Energy (DoE) is finalizing the guidelines that will outline the scope of the ban on new coal power plants in the Philippines.
In October, Energy Secretary Alfonso Cusi announced the agency would no longer accept new endorsement applications for greenfield coal power plants or those coal facilities that are yet to be constructed.
“The circular is still being edited. I approved the draft and it’s being edited,” said Cusi.
The applications being processed by the DoE are those committed power projects included in the Philippine Energy Plan.
The agency is also including the “retirement of old power plant… matching of the replacement of the power that will be lost because of the retirement,” he told reporters.
Cusi noted all factors, not just the age or efficiency of power plants, will be taken into consideration. “We will consider all we need the power, so it cannot just be arbitrary.”
Sought for more information, Mario Marasigan, director of the DoE’s Electric Power Industry Management Bureau, said nothing is final yet as to what power plants will be covered by the moratorium.
“We’re still completing simulations. May existing projects na may proposed na expansion projects (Certain power plants have proposed expansion projects),” said Marasigan.
“We have to determine if yung expansion projects are really part of original plan at hindi mga bago na gusto lang makalibre sa moratorium natin (We have to determine if these expansion projects are really part of the proponent’s original plan and if these are not new projects that the proponent just wants to be excluded from the moratorium),” he explained.
Marasigan said that before the Energy department finalizes the policy, they would need to look into committed and indicative projects that have already secured permits and endorsements, and have undertaken groundworks.
“Then we’re looking at expansion projects ng mga (of the) existing plants,” he said. “Hindi namin alam gaano kalaki ang involved, iyon naman yung mga indicative na halos hindi pa gumagalaw (We do not yet the total capacity of committed and indicative projects, as well as those with expansion plans. The indicated power projects have little to no progress).”
https://www.manilatimes.net/2020/12/26/business/business-top/circular-on-coal-plant-ban-out-soon/817664/
THE Department of Energy (DoE) is finalizing the guidelines that will outline the scope of the ban on new coal power plants in the Philippines.
In October, Energy Secretary Alfonso Cusi announced the agency would no longer accept new endorsement applications for greenfield coal power plants or those coal facilities that are yet to be constructed.
“The circular is still being edited. I approved the draft and it’s being edited,” said Cusi.
The applications being processed by the DoE are those committed power projects included in the Philippine Energy Plan.
The agency is also including the “retirement of old power plant… matching of the replacement of the power that will be lost because of the retirement,” he told reporters.
Cusi noted all factors, not just the age or efficiency of power plants, will be taken into consideration. “We will consider all we need the power, so it cannot just be arbitrary.”
Sought for more information, Mario Marasigan, director of the DoE’s Electric Power Industry Management Bureau, said nothing is final yet as to what power plants will be covered by the moratorium.
“We’re still completing simulations. May existing projects na may proposed na expansion projects (Certain power plants have proposed expansion projects),” said Marasigan.
“We have to determine if yung expansion projects are really part of original plan at hindi mga bago na gusto lang makalibre sa moratorium natin (We have to determine if these expansion projects are really part of the proponent’s original plan and if these are not new projects that the proponent just wants to be excluded from the moratorium),” he explained.
Marasigan said that before the Energy department finalizes the policy, they would need to look into committed and indicative projects that have already secured permits and endorsements, and have undertaken groundworks.
“Then we’re looking at expansion projects ng mga (of the) existing plants,” he said. “Hindi namin alam gaano kalaki ang involved, iyon naman yung mga indicative na halos hindi pa gumagalaw (We do not yet the total capacity of committed and indicative projects, as well as those with expansion plans. The indicated power projects have little to no progress).”
Is PH assured of enough power, fuel supply?
By Jordeene B. Lagare December 26, 2020
https://www.manilatimes.net/2020/12/26/business/business-top/is-ph-assured-of-enough-power-fuel-supply/817661/
In the beginning of the year, the government assured the Filipino people of sufficient power supply for all — just enough to meet their energy needs.
But everything changed when the coronavirus disease 2019 (Covid-19) pandemic struck the country.
When the government first placed Metro Manila and many parts of the country under one of the most stringent quarantines in March, the Department of Energy (DoE) observed a decline of up to 30-percent in power demand, as compared with the same period a year ago.
Energy Secretary Alfonso Cusi had said there were delays in ongoing construction in the Philippine energy sector. Besides the fact that some foreign contractors and workers were not able to travel to the country, there were also issues of late delivery of imported equipment and parts needed for energy facilities.
Amid perceived delays in the completion of ongoing projects and repairs, the agency allayed fears of the public and said the country has enough power supply for the year.
Furthermore, data from the agency showed that the demand for petroleum products decreased by 22.8 percent in the first semester of 2020 due to reduced economic activity from lockdown and travel restrictions caused by the Covid-19 pandemic.
Flat power demand
Given the unexpected turn of events, the Energy department revised its power outlook for 2020, seeing this year’s power demand and supply would remain at the same level as last year’s amid the public health crisis.
“Almost no growth tayo kaya ang ine-expect nating movement ng demand towards the end of the year is just around the 2019 levels (We are expecting almost no growth in electricity consumption so the movement of demand we are expecting towards the end of the year is just around the 2019 levels),” Energy Assistant Secretary Redentor Delola said.
With the stay-at-home order, electricity consumption in the residential sector significantly increased as people are working from home or, in the case of students, studying from home.
Following the imposition of the community quarantines, electricity consumption in the commercial and industrial sectors drastically declined as the majority of economic activities slowed down.
“Yong share ng residential sector sa entire consumption ng ating system, Luzon, the Visayas, and Mindanao medyo tumaas pero hindi niya na-compensate yung pagbagsak naman from the commercial and the industrial sector (What happened during the pandemic was electricity consumption in the residential sector surged but it could not compensate the decline from the commercial and the industrial sector),” he said.
In the case of the Visayas and Mindanao, the Energy official said the virus had minimal impact on power demand because it was mostly residential that was driving demand.
Last year, electricity demand in the country peaked at 15,581 megawatts (MW) in the previous year, based on the DoE’s 2019 Power Situation Report. The figure was 5.4-percent higher than the peak demand of 14,782 MW in 2018.
Citing data from the system operator, Luzon grid took the lion’s share as the region recorded an actual peak demand of 11,344 MW. Peak demand in the Visayas stood at 2,224 MW and in Mindanao, 2,013 MW.
The DoE previously forecasted this year’s peak demand to reach 12,285 MW in Luzon; 2,519 MW in Visayas; and 2,278 MW in Mindanao.
Can the power sector recover?
Cusi himself admitted it is “very difficult” to say whether or not electricity and fuel demand will return to 2019 levels. Yet, once the economy reopens, higher domestic consumption is expected.
“As far as power demand is concerned, there will be surge when we fully open the economy,” said Cusi in a recent virtual briefing, adding the industry continues to build capacity to meet rising electricity demand.
“We are trying to prepare the power supply into a level where we will have a normal operation already. and you know how it takes time before we build capacity,” the Energy chief told reporters.
The 1,336-MW supercritical coal-fired power plant in Dinginin, Bataan, which Aboitiz Power Corp. owns through subsidiary GNPower Dinginin Ltd. Co., was supposed to come online this year but the lockdowns hampered its timely completion. Instead, the first unit of this coal facility would commence commercial operations by the second quarter of 2021.
That is the same case for the country’s petroleum supply, unless the population will be vaccinated against the virus probably from the second half of 2021.
Cusi implied: “It may not go back immediately to the 2019 level,” adding “I think it will be, not at that level, but it will be within the range, especially if our population will be vaccinated, magkakaroon yan ng demand (the demand will surge).”
“Also, nagkakaroon tayo ng opening in the transportation sector (the transportation sector is opening up again), where even the provincial buses are allowed to operate, so magkakaroon na tayo ng (so there will be an) increase in demand in petroleum,” he added.
Nonetheless, Cusi said the current situation presents both “a problem and an opportunity” to do the catchup work in bolstering the country’s supply.
https://www.manilatimes.net/2020/12/26/business/business-top/is-ph-assured-of-enough-power-fuel-supply/817661/
In the beginning of the year, the government assured the Filipino people of sufficient power supply for all — just enough to meet their energy needs.
But everything changed when the coronavirus disease 2019 (Covid-19) pandemic struck the country.
When the government first placed Metro Manila and many parts of the country under one of the most stringent quarantines in March, the Department of Energy (DoE) observed a decline of up to 30-percent in power demand, as compared with the same period a year ago.
Energy Secretary Alfonso Cusi had said there were delays in ongoing construction in the Philippine energy sector. Besides the fact that some foreign contractors and workers were not able to travel to the country, there were also issues of late delivery of imported equipment and parts needed for energy facilities.
Amid perceived delays in the completion of ongoing projects and repairs, the agency allayed fears of the public and said the country has enough power supply for the year.
Furthermore, data from the agency showed that the demand for petroleum products decreased by 22.8 percent in the first semester of 2020 due to reduced economic activity from lockdown and travel restrictions caused by the Covid-19 pandemic.
Flat power demand
Given the unexpected turn of events, the Energy department revised its power outlook for 2020, seeing this year’s power demand and supply would remain at the same level as last year’s amid the public health crisis.
“Almost no growth tayo kaya ang ine-expect nating movement ng demand towards the end of the year is just around the 2019 levels (We are expecting almost no growth in electricity consumption so the movement of demand we are expecting towards the end of the year is just around the 2019 levels),” Energy Assistant Secretary Redentor Delola said.
With the stay-at-home order, electricity consumption in the residential sector significantly increased as people are working from home or, in the case of students, studying from home.
Following the imposition of the community quarantines, electricity consumption in the commercial and industrial sectors drastically declined as the majority of economic activities slowed down.
“Yong share ng residential sector sa entire consumption ng ating system, Luzon, the Visayas, and Mindanao medyo tumaas pero hindi niya na-compensate yung pagbagsak naman from the commercial and the industrial sector (What happened during the pandemic was electricity consumption in the residential sector surged but it could not compensate the decline from the commercial and the industrial sector),” he said.
In the case of the Visayas and Mindanao, the Energy official said the virus had minimal impact on power demand because it was mostly residential that was driving demand.
Last year, electricity demand in the country peaked at 15,581 megawatts (MW) in the previous year, based on the DoE’s 2019 Power Situation Report. The figure was 5.4-percent higher than the peak demand of 14,782 MW in 2018.
Citing data from the system operator, Luzon grid took the lion’s share as the region recorded an actual peak demand of 11,344 MW. Peak demand in the Visayas stood at 2,224 MW and in Mindanao, 2,013 MW.
The DoE previously forecasted this year’s peak demand to reach 12,285 MW in Luzon; 2,519 MW in Visayas; and 2,278 MW in Mindanao.
Can the power sector recover?
Cusi himself admitted it is “very difficult” to say whether or not electricity and fuel demand will return to 2019 levels. Yet, once the economy reopens, higher domestic consumption is expected.
“As far as power demand is concerned, there will be surge when we fully open the economy,” said Cusi in a recent virtual briefing, adding the industry continues to build capacity to meet rising electricity demand.
“We are trying to prepare the power supply into a level where we will have a normal operation already. and you know how it takes time before we build capacity,” the Energy chief told reporters.
The 1,336-MW supercritical coal-fired power plant in Dinginin, Bataan, which Aboitiz Power Corp. owns through subsidiary GNPower Dinginin Ltd. Co., was supposed to come online this year but the lockdowns hampered its timely completion. Instead, the first unit of this coal facility would commence commercial operations by the second quarter of 2021.
That is the same case for the country’s petroleum supply, unless the population will be vaccinated against the virus probably from the second half of 2021.
Cusi implied: “It may not go back immediately to the 2019 level,” adding “I think it will be, not at that level, but it will be within the range, especially if our population will be vaccinated, magkakaroon yan ng demand (the demand will surge).”
“Also, nagkakaroon tayo ng opening in the transportation sector (the transportation sector is opening up again), where even the provincial buses are allowed to operate, so magkakaroon na tayo ng (so there will be an) increase in demand in petroleum,” he added.
Nonetheless, Cusi said the current situation presents both “a problem and an opportunity” to do the catchup work in bolstering the country’s supply.
Guidelines readied for coal plants to be covered by moratorium
Danessa Rivera (The Philippine Star) - December 26, 2020 - 12:00am
https://www.philstar.com/business/2020/12/26/2066239/guidelines-readied-coal-plants-be-covered-moratorium
MANILA, Philippines — The Department of Energy (DOE) is crafting the list of power plants that will be covered by the moratorium on new coal power plants.
A circular is being drafted to lay down the criteria in retiring old power plants.
“This will be considering all factors, not just age. We will consider all. We need the power, so it cannot just be arbitrary,” said Energy Secretary Alfonso Cusi.
“The circular is still being edited. I approved the draft and it’s being edited. Basically, we’re not accepting any new applications or greenfield. What we are processing are those committed plants, those that are part of the Philippine Energy Plan,” he said.
Cusi said the recent assessment revealed the need for the country to shift to a more flexible power supply mix.
This would help build a more sustainable power system that will be resilient in the face of structural changes in demand and will be flexible enough to accommodate the entry of new, cleaner and indigenous technological innovations.
DOE Electric Power Industry Management Bureau director Mario Marasigan said there is no final list of power plants included for retirement yet.
“We’re still completing simulations. Because there are existing projects that have already proposed expansion projects. We have to determine if the expansion project is really part of the original plan,” he said.
The DOE is looking at a hierarchy of power plants in its simulations.
These are the committed projects that have endorsements, the committed and indicative projects with permits, endorsements at groundworks, the expansion projects that are part of the existing plants and the indicative projects that have no movement yet.
https://www.philstar.com/business/2020/12/26/2066239/guidelines-readied-coal-plants-be-covered-moratorium
MANILA, Philippines — The Department of Energy (DOE) is crafting the list of power plants that will be covered by the moratorium on new coal power plants.
A circular is being drafted to lay down the criteria in retiring old power plants.
“This will be considering all factors, not just age. We will consider all. We need the power, so it cannot just be arbitrary,” said Energy Secretary Alfonso Cusi.
“The circular is still being edited. I approved the draft and it’s being edited. Basically, we’re not accepting any new applications or greenfield. What we are processing are those committed plants, those that are part of the Philippine Energy Plan,” he said.
Cusi said the recent assessment revealed the need for the country to shift to a more flexible power supply mix.
This would help build a more sustainable power system that will be resilient in the face of structural changes in demand and will be flexible enough to accommodate the entry of new, cleaner and indigenous technological innovations.
DOE Electric Power Industry Management Bureau director Mario Marasigan said there is no final list of power plants included for retirement yet.
“We’re still completing simulations. Because there are existing projects that have already proposed expansion projects. We have to determine if the expansion project is really part of the original plan,” he said.
The DOE is looking at a hierarchy of power plants in its simulations.
These are the committed projects that have endorsements, the committed and indicative projects with permits, endorsements at groundworks, the expansion projects that are part of the existing plants and the indicative projects that have no movement yet.
Atimonan community gets boost from power project amid COVID-19 woes
posted December 26, 2020 at 07:20 pm by Manila Standard
https://manilastandard.net/index.php/home-design/commercial/342957/atimonan-community-gets-boost-from-power-project-amid-covid-19-woes.html
Atimonan, Quezon—Atimonan One Energy (A1E), a subsidiary of Meralco PowerGen Corporation (MGen), the developer of the 2x600-MW power station in Atimonan, Quezon, is pulling all the stops to provide material and financial support to the local government of Atimonan and its host barangay.
Hounded by the closure of businesses, loss of jobs and limited employment opportunities due to the COVID-19 pandemic, communities like Atimonan are finding their citizens hard-pressed to get out in the field to earn money that will help them support their families.
With the help of its project contractors, A1E has taken on the challenge to pool together resources for the community over the past 10 months.
Jobs above all
Topping the list of benefits are employment opportunities that the project opened up. A1E contractors Synergy Construction Corp., Rexsun Development and Consulting Inc., Delta Earthmoving, Inc., Betonbau Philippines, Inc., and Sta. Clara International Corp. have directly recruited 336 Atimonanins, who represent more than 50% of the total workforce for the project’s ongoing site preparation activities.
These are composed of skilled and unskilled workers such as laborers, steel men, carpenters, masons, scaffolders, drivers, and heavy equipment operators.
“I am happy that A1E gave me the opportunity to be trained as a scaffolder,” said Jose Trapalgar from Barangay Villa Ibaba. Right now, I am receiving more than Php500.00 daily and I’m able to meet the needs of my family. The 58-year-old fisherman completed skills training for professional scaffolders organized by A1E.
Renante Cavestany was hired by Delta as dump truck driver. Prior to this job, the 49-year-old he worked as a driver in an infrastructure project supervised by the Department of Public Works and Highways (DPWH).
“This job made it possible to provide for the needs of my family and be with them at the same time,” said Renante.
Shot in the arm for local businesses
On top of their basic wage, workers also get benefits including insurance.
Atimonan also enjoys other economic benefits including a boost in local employment and additional income from payment of local business tax and real property tax.
Local businesses have been getting more customers with the presence of contractors and their workers in the municipality. Suppliers of raw materials, providers of food, transportation, and other goods and services are likewise benefiting from the A1E’s project.
Eyeing smart community status
MGen president and CEO Rogelio L. Singson vowed to transform the municipality into a progressive and smart community. Among the efforts made by MGen and A1E was the facilitation of the development of a Comprehensive Land Use Plan (CLUP) for the municipality.
“We put the local community at the heart of what we do and we want to ensure that as our projects progress, our communities grow and develop with us,” said Mr. Singson.
Site development activities at the power station started in 2018 and at the peak of construction, the project is expected to result in the hiring of approximately 3,000-5,000 people. Around 300 regular employees will be needed once the plant becomes operational.
https://manilastandard.net/index.php/home-design/commercial/342957/atimonan-community-gets-boost-from-power-project-amid-covid-19-woes.html
Atimonan, Quezon—Atimonan One Energy (A1E), a subsidiary of Meralco PowerGen Corporation (MGen), the developer of the 2x600-MW power station in Atimonan, Quezon, is pulling all the stops to provide material and financial support to the local government of Atimonan and its host barangay.
Hounded by the closure of businesses, loss of jobs and limited employment opportunities due to the COVID-19 pandemic, communities like Atimonan are finding their citizens hard-pressed to get out in the field to earn money that will help them support their families.
With the help of its project contractors, A1E has taken on the challenge to pool together resources for the community over the past 10 months.
Jobs above all
Topping the list of benefits are employment opportunities that the project opened up. A1E contractors Synergy Construction Corp., Rexsun Development and Consulting Inc., Delta Earthmoving, Inc., Betonbau Philippines, Inc., and Sta. Clara International Corp. have directly recruited 336 Atimonanins, who represent more than 50% of the total workforce for the project’s ongoing site preparation activities.
These are composed of skilled and unskilled workers such as laborers, steel men, carpenters, masons, scaffolders, drivers, and heavy equipment operators.
“I am happy that A1E gave me the opportunity to be trained as a scaffolder,” said Jose Trapalgar from Barangay Villa Ibaba. Right now, I am receiving more than Php500.00 daily and I’m able to meet the needs of my family. The 58-year-old fisherman completed skills training for professional scaffolders organized by A1E.
Renante Cavestany was hired by Delta as dump truck driver. Prior to this job, the 49-year-old he worked as a driver in an infrastructure project supervised by the Department of Public Works and Highways (DPWH).
“This job made it possible to provide for the needs of my family and be with them at the same time,” said Renante.
Shot in the arm for local businesses
On top of their basic wage, workers also get benefits including insurance.
Atimonan also enjoys other economic benefits including a boost in local employment and additional income from payment of local business tax and real property tax.
Local businesses have been getting more customers with the presence of contractors and their workers in the municipality. Suppliers of raw materials, providers of food, transportation, and other goods and services are likewise benefiting from the A1E’s project.
Eyeing smart community status
MGen president and CEO Rogelio L. Singson vowed to transform the municipality into a progressive and smart community. Among the efforts made by MGen and A1E was the facilitation of the development of a Comprehensive Land Use Plan (CLUP) for the municipality.
“We put the local community at the heart of what we do and we want to ensure that as our projects progress, our communities grow and develop with us,” said Mr. Singson.
Site development activities at the power station started in 2018 and at the peak of construction, the project is expected to result in the hiring of approximately 3,000-5,000 people. Around 300 regular employees will be needed once the plant becomes operational.
Feed-in-Tariff shocker
Published December 26, 2020, 7:00 AM by Atty. Vic Dimagiba
https://mb.com.ph/2020/12/26/feed-in-tariff-shocker/
Out of the many consumer advocacies that Laban Konsyumer Inc. has undertaken, there is one that dominated its efforts in 2020. The onset of the pandemic in the first quarter, created many problems for the average Filipino – the most consuming of which would be the dificulty to make ends meet. The major reason for the increased difficulty is the escalating cost of goods and services, and the common component that always appears in an analysis of the reasons for such increase is the high cost of power. Thus the State has been on the backs of the electricity distributors for them to lower, defer, extend, and waive collection of electricity bills as a way of easing the burden of the consumers.
However, in the midst of COVID 19, the energy regulator shocked electricity consumers by approving hefty increases in Feed in Tariff (FIT) effective and retroactive to 2016 up to 2020.
What is FIT?
FIT or Feed-in-tariff is a guaranteed rate paid to selected power producers for twenty (20) years. This payment is subsidized by an ALLowance collected from consumers nationwide: thus “FIT ALL.” The electricity distributor has been required to collect FIT ALL as part of the components of the electricity bill. The collected amount is then distributed to the renewable energy producers following certain formulas. The setting of the FIT and the FIT ALL are under the supervision of the energy regulator.
For my readers’ reference, and to highlight the additional FIT that will be shouldered by the hapless consumers, it can be seen the already high FIT for solar energy 2014 entrant at P9.68/kwh is adjusted up to P11.2758/kwh for year 2020; for solar energy 2015 entrant, the FIT for 2015 was increased from P8.6900 up to P 10.1226/kwh. For solar energy 2016 entrant, the FIT was increased from P 8.6900 up to P 9.8248/kwh.
The same is true for wind energy 2014-2015 entrant, which from the original FITat P8.53/kwh, it now stands at P9.8976/kwh for year 2020. For wind 2016 entrant, the FIT was adjusted from P 7.400/kwh up to P8.5804/kwh in 2020.
In my appreciation of the sequence of events, the newly-approved FIT was tailor-fitted to increase the benefits of the industry at the expense of the consumers.
The regulator’s resolution was dated May 26, 2020, published on July 3, 2020 and took effect on July 18, 2020.
Coincidentally, of the five (5) members of the regulator, one (1) did not take part, and two (2) members retired on July 10, 2020.
The following then happened in rapid succession: the petition to increase the FIT ALLowance by P0.22 per kwh was filed on July 20, 2020, a pre–filing conference was held on July 21, 2020 and the case was docketed on August 4, 2020.
This is why Laban Konsyumer Inc. (LKI) has been very critical about the FIT and the FIT ALL. We recently wrote a letter to the energy regulator and laid the first step to reverse the FIT hefty increases, arguing absence of notice and hearing and lack of quorum.
It is clear that the framework of the Feed in Tariff is a form of risk transfer from producers to consumers. Producers are, in effect, guaranteed FIT subsidies through the establishment of a pool of FIT-ALL funds even before they produce a single watt of electricity. To us in consumer advocacy, the welfare of the consumer is clearly the last thing on the regulator’s mind, as consumers are being forced to pay high prices for renewable energy from which they are not even reaping the benefits.
What makes matters worse, is that we have seen these surreptitious adjustments in worst possible timing, which is in the middle of a pandemic that is being faced by the nation. While other electric service providers like the Distribution Utilities and Electric Cooperatives were providing reliefs to electricity consumers during the pandemic, FIT-eligible developers continue to be paid in full and on time from the FIT ALL paid by consumers nationwide.
One thing is surely certain: FIT-ALL is not for ALL consumers.
https://mb.com.ph/2020/12/26/feed-in-tariff-shocker/
Out of the many consumer advocacies that Laban Konsyumer Inc. has undertaken, there is one that dominated its efforts in 2020. The onset of the pandemic in the first quarter, created many problems for the average Filipino – the most consuming of which would be the dificulty to make ends meet. The major reason for the increased difficulty is the escalating cost of goods and services, and the common component that always appears in an analysis of the reasons for such increase is the high cost of power. Thus the State has been on the backs of the electricity distributors for them to lower, defer, extend, and waive collection of electricity bills as a way of easing the burden of the consumers.
However, in the midst of COVID 19, the energy regulator shocked electricity consumers by approving hefty increases in Feed in Tariff (FIT) effective and retroactive to 2016 up to 2020.
What is FIT?
FIT or Feed-in-tariff is a guaranteed rate paid to selected power producers for twenty (20) years. This payment is subsidized by an ALLowance collected from consumers nationwide: thus “FIT ALL.” The electricity distributor has been required to collect FIT ALL as part of the components of the electricity bill. The collected amount is then distributed to the renewable energy producers following certain formulas. The setting of the FIT and the FIT ALL are under the supervision of the energy regulator.
For my readers’ reference, and to highlight the additional FIT that will be shouldered by the hapless consumers, it can be seen the already high FIT for solar energy 2014 entrant at P9.68/kwh is adjusted up to P11.2758/kwh for year 2020; for solar energy 2015 entrant, the FIT for 2015 was increased from P8.6900 up to P 10.1226/kwh. For solar energy 2016 entrant, the FIT was increased from P 8.6900 up to P 9.8248/kwh.
The same is true for wind energy 2014-2015 entrant, which from the original FITat P8.53/kwh, it now stands at P9.8976/kwh for year 2020. For wind 2016 entrant, the FIT was adjusted from P 7.400/kwh up to P8.5804/kwh in 2020.
In my appreciation of the sequence of events, the newly-approved FIT was tailor-fitted to increase the benefits of the industry at the expense of the consumers.
The regulator’s resolution was dated May 26, 2020, published on July 3, 2020 and took effect on July 18, 2020.
Coincidentally, of the five (5) members of the regulator, one (1) did not take part, and two (2) members retired on July 10, 2020.
The following then happened in rapid succession: the petition to increase the FIT ALLowance by P0.22 per kwh was filed on July 20, 2020, a pre–filing conference was held on July 21, 2020 and the case was docketed on August 4, 2020.
This is why Laban Konsyumer Inc. (LKI) has been very critical about the FIT and the FIT ALL. We recently wrote a letter to the energy regulator and laid the first step to reverse the FIT hefty increases, arguing absence of notice and hearing and lack of quorum.
It is clear that the framework of the Feed in Tariff is a form of risk transfer from producers to consumers. Producers are, in effect, guaranteed FIT subsidies through the establishment of a pool of FIT-ALL funds even before they produce a single watt of electricity. To us in consumer advocacy, the welfare of the consumer is clearly the last thing on the regulator’s mind, as consumers are being forced to pay high prices for renewable energy from which they are not even reaping the benefits.
What makes matters worse, is that we have seen these surreptitious adjustments in worst possible timing, which is in the middle of a pandemic that is being faced by the nation. While other electric service providers like the Distribution Utilities and Electric Cooperatives were providing reliefs to electricity consumers during the pandemic, FIT-eligible developers continue to be paid in full and on time from the FIT ALL paid by consumers nationwide.
One thing is surely certain: FIT-ALL is not for ALL consumers.
PNOC-RC still struggling to be profitable
Danessa Rivera (The Philippine Star) - December 26, 2020 - 12:00am
https://www.philstar.com/business/2020/12/26/2066229/pnoc-rc-still-struggling-be-profitable
MANILA, Philippines — State-run PNOC Renewables Corp. (PNOC-RC) is still making a last ditch effort to turn its struggling business around.
Energy Secretary Alfonso Cusi said PNOC-RC is still operating and looking at projects to invest in.
“There is no advice yet from the Governance Commission for Government Owned and Controlled Corporations (GCG). And we are looking at the projects of PNOC-RC, what projects PNOC-RC can push,” he said.
PNOC-RC is the renewable energy arm of Philippine National Oil Co. (PNOC) an attached agency of the DOE. The Energy secretary sits as ex-officio chairman of the PNOC board.
The GCG sought the abolition of the agency.
Pending the decision of President Duterte, PNOC-RC is still operating and exploring projects to invest in.
“PNOC-RC must look at new technologies and help in research and development paving the road for new investors,” he said.
Cusi said the state-run firm would not be able to compete with the private sector if its investments would only revolve around solar rooftops, which is the majority of its existing projects.
Unlike private companies, PNOC-RC’s investments go through a bureaucratic process.
“PNOC-RC is a GOCC, they also need to make a revenue to continue operating. The problem is if their projects are only solar rooftops, they would find it hard to compete with the private sector,” Cusi said.
During the budget hearing of DOE and its attached agencies, PNOC-RC president John Arenas said the company submitted to the Senate energy committee a “turn-around” plan to wipe out losses by 2023.
However, Sen. Sherwin Gatchalian, who chairs the committee, did not endorse the state-run firm’s budget given the GCG recommendation. Instead, he also recommended winding down the corporation due to losses incurred in the past years.
https://www.philstar.com/business/2020/12/26/2066229/pnoc-rc-still-struggling-be-profitable
MANILA, Philippines — State-run PNOC Renewables Corp. (PNOC-RC) is still making a last ditch effort to turn its struggling business around.
Energy Secretary Alfonso Cusi said PNOC-RC is still operating and looking at projects to invest in.
“There is no advice yet from the Governance Commission for Government Owned and Controlled Corporations (GCG). And we are looking at the projects of PNOC-RC, what projects PNOC-RC can push,” he said.
PNOC-RC is the renewable energy arm of Philippine National Oil Co. (PNOC) an attached agency of the DOE. The Energy secretary sits as ex-officio chairman of the PNOC board.
The GCG sought the abolition of the agency.
Pending the decision of President Duterte, PNOC-RC is still operating and exploring projects to invest in.
“PNOC-RC must look at new technologies and help in research and development paving the road for new investors,” he said.
Cusi said the state-run firm would not be able to compete with the private sector if its investments would only revolve around solar rooftops, which is the majority of its existing projects.
Unlike private companies, PNOC-RC’s investments go through a bureaucratic process.
“PNOC-RC is a GOCC, they also need to make a revenue to continue operating. The problem is if their projects are only solar rooftops, they would find it hard to compete with the private sector,” Cusi said.
During the budget hearing of DOE and its attached agencies, PNOC-RC president John Arenas said the company submitted to the Senate energy committee a “turn-around” plan to wipe out losses by 2023.
However, Sen. Sherwin Gatchalian, who chairs the committee, did not endorse the state-run firm’s budget given the GCG recommendation. Instead, he also recommended winding down the corporation due to losses incurred in the past years.
PNOC-RC still struggling to be profitable
Danessa Rivera (The Philippine Star) - December 26, 2020 - 12:00am
https://www.philstar.com/business/2020/12/26/2066229/pnoc-rc-still-struggling-be-profitable
MANILA, Philippines — State-run PNOC Renewables Corp. (PNOC-RC) is still making a last ditch effort to turn its struggling business around.
Energy Secretary Alfonso Cusi said PNOC-RC is still operating and looking at projects to invest in.
“There is no advice yet from the Governance Commission for Government Owned and Controlled Corporations (GCG). And we are looking at the projects of PNOC-RC, what projects PNOC-RC can push,” he said.
PNOC-RC is the renewable energy arm of Philippine National Oil Co. (PNOC) an attached agency of the DOE. The Energy secretary sits as ex-officio chairman of the PNOC board.
The GCG sought the abolition of the agency.
Pending the decision of President Duterte, PNOC-RC is still operating and exploring projects to invest in.
“PNOC-RC must look at new technologies and help in research and development paving the road for new investors,” he said.
Cusi said the state-run firm would not be able to compete with the private sector if its investments would only revolve around solar rooftops, which is the majority of its existing projects.
Unlike private companies, PNOC-RC’s investments go through a bureaucratic process.
“PNOC-RC is a GOCC, they also need to make a revenue to continue operating. The problem is if their projects are only solar rooftops, they would find it hard to compete with the private sector,” Cusi said.
During the budget hearing of DOE and its attached agencies, PNOC-RC president John Arenas said the company submitted to the Senate energy committee a “turn-around” plan to wipe out losses by 2023.
However, Sen. Sherwin Gatchalian, who chairs the committee, did not endorse the state-run firm’s budget given the GCG recommendation. Instead, he also recommended winding down the corporation due to losses incurred in the past years.
https://www.philstar.com/business/2020/12/26/2066229/pnoc-rc-still-struggling-be-profitable
MANILA, Philippines — State-run PNOC Renewables Corp. (PNOC-RC) is still making a last ditch effort to turn its struggling business around.
Energy Secretary Alfonso Cusi said PNOC-RC is still operating and looking at projects to invest in.
“There is no advice yet from the Governance Commission for Government Owned and Controlled Corporations (GCG). And we are looking at the projects of PNOC-RC, what projects PNOC-RC can push,” he said.
PNOC-RC is the renewable energy arm of Philippine National Oil Co. (PNOC) an attached agency of the DOE. The Energy secretary sits as ex-officio chairman of the PNOC board.
The GCG sought the abolition of the agency.
Pending the decision of President Duterte, PNOC-RC is still operating and exploring projects to invest in.
“PNOC-RC must look at new technologies and help in research and development paving the road for new investors,” he said.
Cusi said the state-run firm would not be able to compete with the private sector if its investments would only revolve around solar rooftops, which is the majority of its existing projects.
Unlike private companies, PNOC-RC’s investments go through a bureaucratic process.
“PNOC-RC is a GOCC, they also need to make a revenue to continue operating. The problem is if their projects are only solar rooftops, they would find it hard to compete with the private sector,” Cusi said.
During the budget hearing of DOE and its attached agencies, PNOC-RC president John Arenas said the company submitted to the Senate energy committee a “turn-around” plan to wipe out losses by 2023.
However, Sen. Sherwin Gatchalian, who chairs the committee, did not endorse the state-run firm’s budget given the GCG recommendation. Instead, he also recommended winding down the corporation due to losses incurred in the past years.
Japan's Orix to buy Spanish energy firm for about 100b yen
Sat, Dec 26, 2020 - 8:09 AM
https://www.businesstimes.com.sg/energy-commodities/japans-orix-to-buy-spanish-energy-firm-for-about-100b-yen
[TOKYO] Orix Corp agreed to buy Spain's Elawan Energy, the Japanese financial conglomerate's first deal to acquire a majority stake in an overseas renewable power company, people with knowledge of the matter said.
Tokyo-based Orix is purchasing an 80 per cent stake in Elawan from its management and Spanish industrial company Acek, said the people, who asked not to be identified before an announcement. With an additional capital injection later, the deal is worth about 100 billion yen (S$1.29 billion), the people said.
The acquisition will expand Orix's global renewable energy operations as it broadens a business portfolio that ranges from leasing to banking and real estate. Acek, which also owns car parts maker Gestamp Automocion, has been selling stakes in renewable assets.
Tokyo-based Orix spokesperson Yuka Kanaoka declined to comment. A call made to Madrid-based Acek on the Christmas Day holiday went unanswered.
Elawan, set up in 2007, develops and operates wind and solar power projects in Europe and the Americas. It has 714 megawatts of operational projects, more than 460 megawatts under construction and a development pipeline of over 10 gigawatts.
Orix has been ramping up investment in renewable energy at home and abroad in recent years. The company is also looking for such assets in the US, the people said.
In September, Orix agreed to buy a roughly 20 per cent stake in Indian renewable energy developer Greenko Energy Holdings for US$980 million, the conglomerate's biggest investment in the sector overseas.
https://www.businesstimes.com.sg/energy-commodities/japans-orix-to-buy-spanish-energy-firm-for-about-100b-yen
[TOKYO] Orix Corp agreed to buy Spain's Elawan Energy, the Japanese financial conglomerate's first deal to acquire a majority stake in an overseas renewable power company, people with knowledge of the matter said.
Tokyo-based Orix is purchasing an 80 per cent stake in Elawan from its management and Spanish industrial company Acek, said the people, who asked not to be identified before an announcement. With an additional capital injection later, the deal is worth about 100 billion yen (S$1.29 billion), the people said.
The acquisition will expand Orix's global renewable energy operations as it broadens a business portfolio that ranges from leasing to banking and real estate. Acek, which also owns car parts maker Gestamp Automocion, has been selling stakes in renewable assets.
Tokyo-based Orix spokesperson Yuka Kanaoka declined to comment. A call made to Madrid-based Acek on the Christmas Day holiday went unanswered.
Elawan, set up in 2007, develops and operates wind and solar power projects in Europe and the Americas. It has 714 megawatts of operational projects, more than 460 megawatts under construction and a development pipeline of over 10 gigawatts.
Orix has been ramping up investment in renewable energy at home and abroad in recent years. The company is also looking for such assets in the US, the people said.
In September, Orix agreed to buy a roughly 20 per cent stake in Indian renewable energy developer Greenko Energy Holdings for US$980 million, the conglomerate's biggest investment in the sector overseas.
ERC grants motion of First Gen Hydro to implement P5.1908-per-kWh supply rate
posted December 25, 2020 at 06:30 pm by Alena Mae S. Flores
https://tribune.net.ph/index.php/2020/12/25/doe-sees-uys-malampaya-contract-clean/
The Energy Regulatory Commission granted the motion for reconsideration filed by First Gen Hydro Corp. to implement the P5.1908 per kilowatt-hour rate under its power supply agreement with Manila Electric Co.
“After due deliberation and evaluation of all evidence submitted and all information gathered by the commission pursuant to its regulatory powers, it resolves to grant the motion for reconsideration by applicant FGHPC,” ERC said in an order.
The regulator approved the motion of Meralco-FGHPC seeking to implement the P5.1908 per kWh rate under the PSA, subject to escalation.
FGHPC won the contract to supply Meralco 100 megawatts during the competitive selection process in September 2019 for an all-in headline rate (VAT inclusive) of P5.1908 per kWh and computed all-in levelized cost of energy (LCOE, VAT Inclusive) of P5.3989 per kWh.
Following the successful CSP, Meralco and FGHPC filed for approval of the PSA with the ERC and the regulator approved the PSA in December 2019 for lower applicable rate of P4.2366 per kWh to the parties, subject to escalation.
“Consistent with the provisions of Republic Act No. 9136, otherwise known as the Electric Power Industry Reform Act of 2001, the commission is obliged to allow entities involved in generation and supply to recover reasonable and prudent costs,” ERC said.
The regulator said the proposed P5.1908 per kWh rate, not subject to value added tax, is “relatively lower and more stable compared to the rates being implemented in Meralco’s expired PSAs.”
ERC also allowed the parties to recover the newly approved rated retroactively.
“Considering that all outstanding issues, as identified in its order dated December 10, 2019 have been sufficiently addressed, the Commission hereby deems it in order to grant the retroactive implementation of the reconsidered rate and fee structure,” ERC said.
ERC directed Meralco to efficiently utilize the contracted capacity from FGHPC, bearing in mind its obligation to supply at least cost.
ERC also said that since the amount granted was only provisional, the final rate that could be recovered should be determined in its final resolution.
It said that in the event that the final rate was lower than the rate previously approved, the reduction should be refunded by FGHPC to Meralco. If the final rate is higher than that provisionally granted, the resulting additional charges should be collected by FGHPC from Meralco.
ERC directed Meralco to ensure that the best available rate in the market vis-à-vis contract price should be used in the computation of optimum blended rates of consumers.
https://tribune.net.ph/index.php/2020/12/25/doe-sees-uys-malampaya-contract-clean/
The Energy Regulatory Commission granted the motion for reconsideration filed by First Gen Hydro Corp. to implement the P5.1908 per kilowatt-hour rate under its power supply agreement with Manila Electric Co.
“After due deliberation and evaluation of all evidence submitted and all information gathered by the commission pursuant to its regulatory powers, it resolves to grant the motion for reconsideration by applicant FGHPC,” ERC said in an order.
The regulator approved the motion of Meralco-FGHPC seeking to implement the P5.1908 per kWh rate under the PSA, subject to escalation.
FGHPC won the contract to supply Meralco 100 megawatts during the competitive selection process in September 2019 for an all-in headline rate (VAT inclusive) of P5.1908 per kWh and computed all-in levelized cost of energy (LCOE, VAT Inclusive) of P5.3989 per kWh.
Following the successful CSP, Meralco and FGHPC filed for approval of the PSA with the ERC and the regulator approved the PSA in December 2019 for lower applicable rate of P4.2366 per kWh to the parties, subject to escalation.
“Consistent with the provisions of Republic Act No. 9136, otherwise known as the Electric Power Industry Reform Act of 2001, the commission is obliged to allow entities involved in generation and supply to recover reasonable and prudent costs,” ERC said.
The regulator said the proposed P5.1908 per kWh rate, not subject to value added tax, is “relatively lower and more stable compared to the rates being implemented in Meralco’s expired PSAs.”
ERC also allowed the parties to recover the newly approved rated retroactively.
“Considering that all outstanding issues, as identified in its order dated December 10, 2019 have been sufficiently addressed, the Commission hereby deems it in order to grant the retroactive implementation of the reconsidered rate and fee structure,” ERC said.
ERC directed Meralco to efficiently utilize the contracted capacity from FGHPC, bearing in mind its obligation to supply at least cost.
ERC also said that since the amount granted was only provisional, the final rate that could be recovered should be determined in its final resolution.
It said that in the event that the final rate was lower than the rate previously approved, the reduction should be refunded by FGHPC to Meralco. If the final rate is higher than that provisionally granted, the resulting additional charges should be collected by FGHPC from Meralco.
ERC directed Meralco to ensure that the best available rate in the market vis-à-vis contract price should be used in the computation of optimum blended rates of consumers.
Cusi asks energy companies to be more considerate
posted December 25, 2020 at 06:40 pm by Alena Mae S. Flores
https://manilastandard.net/index.php/business/power-technology/342926/cusi-asks-energy-companies-to-be-more-considerate.html
Energy Secretary Alfonso Cusi on Thursday encourages energy players to be more considerate to consumers during the pandemic as he welcomed the move of Manila Electric Co. to extend its ‘no-disconnection’ policy for non-payment of bills from Dec. 31, 2020 to Jan. 31, 2021.
“I encourage all other players in the energy sector to be magnanimous and considerate in light of the challenges brought about by the pandemic,” Cusi said.
Cusi lauded House Speaker Lord Allan Velasco for requesting to extend Meralco’s no disconnection policy for non-payment of bills during the holiday season.
The House leader earlier wrote a letter to Meralco president Ray Espinosa, requesting the utility giant to extend the no-disconnection policy for the entire Christmas season and until the end of January 2021.
Velasco said extending the no-disconnection period would help ease the burden of Meralco customers grappling with the challenges posed by the pandemic.
“We appreciate that Meralco had extended the same courtesy during the height of the nationwide lockdown, and we expect that the company will be as considerate this yuletide season,” Velasco said in his Nov. 30 letter.
Espinosa, in his response, agreed to Velasco’s request for the extension after “careful evaluation and in consideration.”
Espinosa said the extended grace period would benefit more than 3 million Meralco customers with consumption of 200 kilowatts per hour and below during the billing month of December.
The number represents around 47 percent of Meralco’s total customer base, according to Espinosa.
Velasco said Meralco’s move was very welcome in keeping with the spirit of bayanihan amid the COVID-19 pandemic.
“The extended grace period being given to our fellow Filipinos during the holiday season will provide much-needed reprieve to those reeling from the devastating effects of the pandemic and natural calamities,” Velasco said.
“This good gesture on the part of Meralco will go a long way in helping our kababayans feel secure this Christmas,” he said.
Velasco thanked Espinosa for “showing true bayanihan spirit and empathizing with the plight of our indigent countrymen.”
“This is how we overcome the devastating effects of this pandemic, with leaders from both private and public sectors working together to make lives better,” Velasco said.
https://manilastandard.net/index.php/business/power-technology/342926/cusi-asks-energy-companies-to-be-more-considerate.html
Energy Secretary Alfonso Cusi on Thursday encourages energy players to be more considerate to consumers during the pandemic as he welcomed the move of Manila Electric Co. to extend its ‘no-disconnection’ policy for non-payment of bills from Dec. 31, 2020 to Jan. 31, 2021.
“I encourage all other players in the energy sector to be magnanimous and considerate in light of the challenges brought about by the pandemic,” Cusi said.
Cusi lauded House Speaker Lord Allan Velasco for requesting to extend Meralco’s no disconnection policy for non-payment of bills during the holiday season.
The House leader earlier wrote a letter to Meralco president Ray Espinosa, requesting the utility giant to extend the no-disconnection policy for the entire Christmas season and until the end of January 2021.
Velasco said extending the no-disconnection period would help ease the burden of Meralco customers grappling with the challenges posed by the pandemic.
“We appreciate that Meralco had extended the same courtesy during the height of the nationwide lockdown, and we expect that the company will be as considerate this yuletide season,” Velasco said in his Nov. 30 letter.
Espinosa, in his response, agreed to Velasco’s request for the extension after “careful evaluation and in consideration.”
Espinosa said the extended grace period would benefit more than 3 million Meralco customers with consumption of 200 kilowatts per hour and below during the billing month of December.
The number represents around 47 percent of Meralco’s total customer base, according to Espinosa.
Velasco said Meralco’s move was very welcome in keeping with the spirit of bayanihan amid the COVID-19 pandemic.
“The extended grace period being given to our fellow Filipinos during the holiday season will provide much-needed reprieve to those reeling from the devastating effects of the pandemic and natural calamities,” Velasco said.
“This good gesture on the part of Meralco will go a long way in helping our kababayans feel secure this Christmas,” he said.
Velasco thanked Espinosa for “showing true bayanihan spirit and empathizing with the plight of our indigent countrymen.”
“This is how we overcome the devastating effects of this pandemic, with leaders from both private and public sectors working together to make lives better,” Velasco said.
Petron offers free one-year fuel supply
posted December 24, 2020 at 07:30 pm by Alena Mae S. Flores
https://manilastandard.net/business/power-technology/342858/petron-offers-free-one-year-fuel-supply.html
Petron Corp. is offering a free one-year supply of fuel as part of a 12-day promo for loyal customers.
Petron has been giving away big prizes and discounts daily through its 12 Days of Merry promo for all Petron Value Card holders.
“This is our way of giving back to all the motorists who continue to make Petron their fuel brand of choice. While this year’s Christmas will be quite different, we still want to give something special to our customers by rewarding them for their loyalty and putting more savings in their pockets,” said Petron president and chief executive Ramon Ang.
Petron saved the best prize for last on Dec. 25 when 12 lucky customers can win a one-year supply of fuel equivalent to P88,000. For a minimum P500 single-receipt purchase of any Petron fuel on Dec. 25, a customer can qualify for one raffle entry to join the online raffle.
The customers will receive an SMS notification with the raffle reference number as proof of promo entry via their Petron Loyalty Card registered number.
https://manilastandard.net/business/power-technology/342858/petron-offers-free-one-year-fuel-supply.html
Petron Corp. is offering a free one-year supply of fuel as part of a 12-day promo for loyal customers.
Petron has been giving away big prizes and discounts daily through its 12 Days of Merry promo for all Petron Value Card holders.
“This is our way of giving back to all the motorists who continue to make Petron their fuel brand of choice. While this year’s Christmas will be quite different, we still want to give something special to our customers by rewarding them for their loyalty and putting more savings in their pockets,” said Petron president and chief executive Ramon Ang.
Petron saved the best prize for last on Dec. 25 when 12 lucky customers can win a one-year supply of fuel equivalent to P88,000. For a minimum P500 single-receipt purchase of any Petron fuel on Dec. 25, a customer can qualify for one raffle entry to join the online raffle.
The customers will receive an SMS notification with the raffle reference number as proof of promo entry via their Petron Loyalty Card registered number.
DOE, DPWH eye joint circular to relocate over 50,000 electric poles
posted December 24, 2020 at 07:35 pm by Alena Mae S. Flores
https://manilastandard.net/business/power-technology/342871/doe-dpwh-eye-joint-circular-to-relocate-over-50-000-electric-poles-.html
The Department of Energy and the Department of Public Works and Highways plan to issue a third joint circular to relocate over 50,000 electric poles obstructing national roads and highways.
The draft circular will provide a the mechanism for the immediate relocation of electric poles within the national government’s right of way and give a timeline.
Joint Circular No. 1, series of 2017, prescribed the uniform guidelines and procedures for the proper payment of compensation and recovery of cost to relocate electric cooperative and sub-transmission lines.
Section 13 of JC1 provides that “within one year from the effectivity of this joint circular, the National Electrification Administration and Electric Cooperative shall cause the removal and relocation of any improperly located facility in the government’s right-of-way, subject to payment of compensation provided in the circular”.
The DOE and the DPWH adopted Joint Circular No. 2 to extend the period of relocation of obstructing facilities provided in Section 13 of JC1, for up to Dec. 31, 2019. The deadline provided in JC2 lapsed while a significant number of poles remained in the government’s right-of-way that raised public safety concerns.
Senator Sherwin Gatchalian, in a hearing called by Senate Committee on Energy, raised concerns over the delay in the relocation of the poles. About 59,640 electric poles still need to be relocated and compensated, according to the NEA.
Under the proposed third circular, all relevant stakeholders recognize that the period provided in JC2 is not sufficient as relocation of the poles were not timely implemented because of circumstances beyond the control of the ECs and the concerned national government agencies.
“Considering that removal of the electric poles obstructing in the national roads and highways is still a primordial concern of the government, the IATF, in its Resolution No. 1 Series of 2020, recommended to dispense the classification and deadline of the submission of the requisites for the 59,640 electric poles endorsed by NEA, and extend the period of relocation set forth in JC1 and JC2, to accomplish the complete clearing of electric poles in the government’s right-of-way,” the circular read.
The IATF also recommended the adoption of a new DOE and DPWH joint circular to provide mechanisms and timeline for the immediate relocation of electric poles within the government’s right-of-way.
https://manilastandard.net/business/power-technology/342871/doe-dpwh-eye-joint-circular-to-relocate-over-50-000-electric-poles-.html
The Department of Energy and the Department of Public Works and Highways plan to issue a third joint circular to relocate over 50,000 electric poles obstructing national roads and highways.
The draft circular will provide a the mechanism for the immediate relocation of electric poles within the national government’s right of way and give a timeline.
Joint Circular No. 1, series of 2017, prescribed the uniform guidelines and procedures for the proper payment of compensation and recovery of cost to relocate electric cooperative and sub-transmission lines.
Section 13 of JC1 provides that “within one year from the effectivity of this joint circular, the National Electrification Administration and Electric Cooperative shall cause the removal and relocation of any improperly located facility in the government’s right-of-way, subject to payment of compensation provided in the circular”.
The DOE and the DPWH adopted Joint Circular No. 2 to extend the period of relocation of obstructing facilities provided in Section 13 of JC1, for up to Dec. 31, 2019. The deadline provided in JC2 lapsed while a significant number of poles remained in the government’s right-of-way that raised public safety concerns.
Senator Sherwin Gatchalian, in a hearing called by Senate Committee on Energy, raised concerns over the delay in the relocation of the poles. About 59,640 electric poles still need to be relocated and compensated, according to the NEA.
Under the proposed third circular, all relevant stakeholders recognize that the period provided in JC2 is not sufficient as relocation of the poles were not timely implemented because of circumstances beyond the control of the ECs and the concerned national government agencies.
“Considering that removal of the electric poles obstructing in the national roads and highways is still a primordial concern of the government, the IATF, in its Resolution No. 1 Series of 2020, recommended to dispense the classification and deadline of the submission of the requisites for the 59,640 electric poles endorsed by NEA, and extend the period of relocation set forth in JC1 and JC2, to accomplish the complete clearing of electric poles in the government’s right-of-way,” the circular read.
The IATF also recommended the adoption of a new DOE and DPWH joint circular to provide mechanisms and timeline for the immediate relocation of electric poles within the government’s right-of-way.
NGCP proposes tax-exempt vaccine deals for private companies
Danessa Rivera (The Philippine Star) - December 24, 2020 - 12:00am
https://www.philstar.com/business/2020/12/24/2065893/ngcp-proposes-tax-exempt-vaccine-deals-private-companies
MANILA, Philippines — The National Grid Corp. of the Philippines (NGCP) is seeking the support of Congress to allow private companies to procure COVID-19 vaccines tax-free.
NGCP president and CEO Anthony Almeda said they are asking Congress to pass a law encouraging the private sector to provide vaccination to employees.
“Vaccination, as well as mass testing, is focally critical in the fight against COVID-19. We need to prevent, detect, isolate and treat. We need to jumpstart the economy now, but we need to ensure that we stack the odds against infections in the workplace,” he said.
“With a vaccination program in place for the private sector, more businesses and industries will be able to regain some semblance of normal activity, bounce back, and put the economy on its way to recovery after almost a year of slowdown,” Almeda said.
The NGCP official also appealed to lawmakers to allow private companies to import, tax-free, COVID-19 vaccines for the use of their employees.
He said this would enable businesses to give the economy a much-needed boost in activity.
The power grid operator is monitoring the progress and rollout of COVID-19 vaccines in other countries.
It is also assessing the possibility of providing its employees, including essential personnel composed of grid dispatchers and transmission line personnel, with the necessary doses as soon as these become available. NGCP has a 5,000-strong workforce.
The company is also pushing other public and private entities to protect their employees.
“We encourage our counterparts in both the public and private sectors to be similarly proactive in protecting their employees, so that we can keep the economy running at full speed,” Almeda said.
NGCP said it continues to help local governments, national health agencies, and various communities fight the disease.
It earlier donated P1 billion to the national government to aid Filipinos in the early days of quarantine protocols.
About 1.25 million food bags, 10 mechanical ventilators, 6 RT-PCR machines, 20,520 test kits, 100 test booths, and testing services, 9 ambulances, 1 isolation room, and 4.6 million PPEs (masks, gloves, bunny suits etc.) were donated to over 1,028 LGUs, more than 300 public and private medical facilities, and countless other public and private organizations.
Just this month, NGCP donated three additional ambulances to various local governments hosting its facilities, and 10,000 test kits, 50 test booths, and testing services to Pasay City.
NGCP is a Filipino-led, privately owned company in charge of operating, maintaining, and developing the country’s power grid, led by majority shareholders and vice chairman Henry Sy Jr. and co-vice chairman Robert Coyiuto Jr.
https://www.philstar.com/business/2020/12/24/2065893/ngcp-proposes-tax-exempt-vaccine-deals-private-companies
MANILA, Philippines — The National Grid Corp. of the Philippines (NGCP) is seeking the support of Congress to allow private companies to procure COVID-19 vaccines tax-free.
NGCP president and CEO Anthony Almeda said they are asking Congress to pass a law encouraging the private sector to provide vaccination to employees.
“Vaccination, as well as mass testing, is focally critical in the fight against COVID-19. We need to prevent, detect, isolate and treat. We need to jumpstart the economy now, but we need to ensure that we stack the odds against infections in the workplace,” he said.
“With a vaccination program in place for the private sector, more businesses and industries will be able to regain some semblance of normal activity, bounce back, and put the economy on its way to recovery after almost a year of slowdown,” Almeda said.
The NGCP official also appealed to lawmakers to allow private companies to import, tax-free, COVID-19 vaccines for the use of their employees.
He said this would enable businesses to give the economy a much-needed boost in activity.
The power grid operator is monitoring the progress and rollout of COVID-19 vaccines in other countries.
It is also assessing the possibility of providing its employees, including essential personnel composed of grid dispatchers and transmission line personnel, with the necessary doses as soon as these become available. NGCP has a 5,000-strong workforce.
The company is also pushing other public and private entities to protect their employees.
“We encourage our counterparts in both the public and private sectors to be similarly proactive in protecting their employees, so that we can keep the economy running at full speed,” Almeda said.
NGCP said it continues to help local governments, national health agencies, and various communities fight the disease.
It earlier donated P1 billion to the national government to aid Filipinos in the early days of quarantine protocols.
About 1.25 million food bags, 10 mechanical ventilators, 6 RT-PCR machines, 20,520 test kits, 100 test booths, and testing services, 9 ambulances, 1 isolation room, and 4.6 million PPEs (masks, gloves, bunny suits etc.) were donated to over 1,028 LGUs, more than 300 public and private medical facilities, and countless other public and private organizations.
Just this month, NGCP donated three additional ambulances to various local governments hosting its facilities, and 10,000 test kits, 50 test booths, and testing services to Pasay City.
NGCP is a Filipino-led, privately owned company in charge of operating, maintaining, and developing the country’s power grid, led by majority shareholders and vice chairman Henry Sy Jr. and co-vice chairman Robert Coyiuto Jr.
MGen takes full ownership of GBP
(The Philippine Star ) - December 24, 2020 - 12:00am
https://www.philstar.com/business/2020/12/24/2065886/mgen-takes-full-ownership-gbp
MANILA, Philippines — Gokongwei-owned JG Summit Holdings Inc. and Pangilinan-led Metro Pacific Investments Corp. (MPIC) are consolidating their power sector investments under Manila Electric Co. (Meralco).
Under the plan, JG Summit and MPIC will transfer their respective shareholdings in Global Business Power Corp. to Meralco subsidiary Meralco PowerGen Corp. (MGen).
“MGen announced the signing of agreements with Beacon Powergen Holding Inc., a wholly owned subsidiary of MPIC and with JG Summit for the transfer of their respective shareholdings in Global Business Power to MGen for the purchase price of P22.4 billion and P12 billion, respectively,” Meralco said in a stock disclosure yesterday.
The purchase price shall be paid in installments or 60 percent at the close of the transaction which is expected in the first quarter of 2021, and 20 percent to be paid six months after and the remaining 20 percent will be paid after 18 months.
MPIC holds a 56 percent interest in Global Business Power while JG Summit holds a 30 percent interest. The remaining 14 percent is held by MGen.
In Meralco, MPIC holds a 45.46 percent stake while JGS holds a 29.56 percent interest.
As a result of the transaction, MGen will own 100 percent of Global Business Power, the leading power producer in the country outside Luzon with a capacity of 1,091 megawatts. MGen plans to build a portfolio of 3,000 MW in five years.
The newly combined MGen and Global Business Power will be able to respond to the needs of the country as the economy makes a strong rebound in 2021 especially with the COVID-19 vaccines, MPIC president and CEO Jose Ma. Lim.
JG Summit president and CEO Lance Gokongwei said combining MGen and Global Business Power under Meralco is the next step up for the two conglomerates.
“We are happy with how Global Business Power has performed since our investment in 2016. The challenge now is how to further grow the business and take it to the next level. I am confident that combining this under Meralco where JG Summit is also a significant shareholder is the best way to achieve synergies and create further value,” Gokongwei said.
https://www.philstar.com/business/2020/12/24/2065886/mgen-takes-full-ownership-gbp
MANILA, Philippines — Gokongwei-owned JG Summit Holdings Inc. and Pangilinan-led Metro Pacific Investments Corp. (MPIC) are consolidating their power sector investments under Manila Electric Co. (Meralco).
Under the plan, JG Summit and MPIC will transfer their respective shareholdings in Global Business Power Corp. to Meralco subsidiary Meralco PowerGen Corp. (MGen).
“MGen announced the signing of agreements with Beacon Powergen Holding Inc., a wholly owned subsidiary of MPIC and with JG Summit for the transfer of their respective shareholdings in Global Business Power to MGen for the purchase price of P22.4 billion and P12 billion, respectively,” Meralco said in a stock disclosure yesterday.
The purchase price shall be paid in installments or 60 percent at the close of the transaction which is expected in the first quarter of 2021, and 20 percent to be paid six months after and the remaining 20 percent will be paid after 18 months.
MPIC holds a 56 percent interest in Global Business Power while JG Summit holds a 30 percent interest. The remaining 14 percent is held by MGen.
In Meralco, MPIC holds a 45.46 percent stake while JGS holds a 29.56 percent interest.
As a result of the transaction, MGen will own 100 percent of Global Business Power, the leading power producer in the country outside Luzon with a capacity of 1,091 megawatts. MGen plans to build a portfolio of 3,000 MW in five years.
The newly combined MGen and Global Business Power will be able to respond to the needs of the country as the economy makes a strong rebound in 2021 especially with the COVID-19 vaccines, MPIC president and CEO Jose Ma. Lim.
JG Summit president and CEO Lance Gokongwei said combining MGen and Global Business Power under Meralco is the next step up for the two conglomerates.
“We are happy with how Global Business Power has performed since our investment in 2016. The challenge now is how to further grow the business and take it to the next level. I am confident that combining this under Meralco where JG Summit is also a significant shareholder is the best way to achieve synergies and create further value,” Gokongwei said.
Lawmaker to Meralco: Extend grace period to July
By Divina Nova Joy Dela Cruz December 24, 2020
https://www.manilatimes.net/2020/12/24/news/national/lawmaker-to-meralco-extend-grace-period-to-july/816738/
Deputy Minority Leader Rep. Carlos Isagani Zarate of the Bayan Muna party-list welcomed the granting of the Manila Electric Co.’s (Meralco) extension of its no-disconnection period until January 31 next year, but asked the power distributor to further stretch it to six more months, or until July, as the pandemic persists.
With the extension, services for electricity consumers with a consumption of 200 kilowatts per hour and below during the December 2020 billing will not be disconnected. Meralco projected the extension to benefit more than 3 million consumers or around 47 percent of its total customer base.
The power distributor announced the extension after several groups, including House Speaker Lord Allan Velasco made the request. This was after the power distributor had extended the previous deadline of unpaid electricity bills from Sept. 30, 2020 to Dec. 31, 2020.
“This is a much welcome move but we urge Meralco to further extend its no disconnection period for at least six months so that electricity consumers would be in a better position to pay their bills considering that many lost their jobs and are finding it hard to just put a meal on the table,” Zarate said.
Meanwhile, despite the development, Zarate is still hoping that congressional investigation on Meralco’s rates will still push through.
Zarate is among the authors of House Resolution (HR) 879, seeking to probe the sudden spike in electricity rates, and HR 1350, seeking to probe Meralco’s alleged payment of overpriced generation rates.
https://www.manilatimes.net/2020/12/24/news/national/lawmaker-to-meralco-extend-grace-period-to-july/816738/
Deputy Minority Leader Rep. Carlos Isagani Zarate of the Bayan Muna party-list welcomed the granting of the Manila Electric Co.’s (Meralco) extension of its no-disconnection period until January 31 next year, but asked the power distributor to further stretch it to six more months, or until July, as the pandemic persists.
With the extension, services for electricity consumers with a consumption of 200 kilowatts per hour and below during the December 2020 billing will not be disconnected. Meralco projected the extension to benefit more than 3 million consumers or around 47 percent of its total customer base.
The power distributor announced the extension after several groups, including House Speaker Lord Allan Velasco made the request. This was after the power distributor had extended the previous deadline of unpaid electricity bills from Sept. 30, 2020 to Dec. 31, 2020.
“This is a much welcome move but we urge Meralco to further extend its no disconnection period for at least six months so that electricity consumers would be in a better position to pay their bills considering that many lost their jobs and are finding it hard to just put a meal on the table,” Zarate said.
Meanwhile, despite the development, Zarate is still hoping that congressional investigation on Meralco’s rates will still push through.
Zarate is among the authors of House Resolution (HR) 879, seeking to probe the sudden spike in electricity rates, and HR 1350, seeking to probe Meralco’s alleged payment of overpriced generation rates.
PHL needs a clear energy transition plan
By BusinessMirror Editorial December 24, 2020
https://businessmirror.com.ph/2020/12/24/phl-needs-a-clear-energy-transition-plan/
Recent reports on vaccines working effectively make us optimistic about the Philippine economic forecast in 2021. Effective vaccines will help ignite faster economic recovery. Government has said that gross domestic product growth would recover and expand in 2021 by 6.5 percent to 7.5 percent. Global financial giant Morgan Stanley is more bullish about the Philippines’s strong economic rebound next year against a backdrop of low inflation and the government’s infrastructure development push. In a recent report, Morgan Stanley hiked its 2021 GDP growth forecast for the Philippines to 13.5 percent from 13.1 percent.
Predictions that the Philippines can come out of the Covid-19 crisis with enhanced economic competitiveness are most welcome. However, historical data has shown that when the Philippines experienced fast economic growth, that expansion was directly proportional to electricity consumption. Thus, a sustained GDP growth entails rising demand in electricity.
Here’s the good news: Amid the pandemic, power rates have been on a downward trend as Meralco announced another reduction in consumers’ electricity bills, pushing rates to their lowest in three years. Meralco recently said that customers will have a net rate reduction of P1.3870 per kWh, equivalent to a bill reduction of more than P277 for a 200-kWh household. The lower power rates were partly attributed to Meralco’s new Power Supply Agreements, secured after a transparent competitive selection process last year. The new PSAs resulted in additional power supply and capacity to the grid, while leading to lower electricity prices for consumers.
Now the bad news: Despite the downward power rates trend, the current campaign for renewable energy (RE) as an immediate alternative source to produce baseload capacity may backfire on consumers in the short-term. That’s because the country’s power grid is not yet suited to handle 100-percent renewable energy. If the economy has to grow next year as projected, more baseload power is needed.
Here’s the tricky part: Power generation companies running natural gas power plants also claim that natural gas is a cleaner power source compared with coal, which is cheaper. This is untrue, according to National Energy Technology Laboratory in the US. While natural gas emits 50 percent less carbon dioxide, it doesn’t mean it’s zero CO2, NETL said. CO2 is not only the harmful emission generated by natural gas development. It also generates methane, which, according to NETL, is a very powerful greenhouse gas. In the first two decades after its release, methane is 84 times more potent than carbon dioxide.
No one disagrees with the use of renewable energy. However, at its technological infancy, RE is neither cheap nor reliable. With the exception of hydroelectric plants, RE is still an expensive and unreliable option for a country emerging from Covid devastation. By the sheer volume of our rising power demand based on our 2021 economic growth forecast, we need cheap and reliable sources of power that can provide us with a stable baseload generating capacity. That will insulate us from shortages and prevent speculators from playing the wholesale electricity spot market every time reserves become thin.
The Philippines, which is highly vulnerable to the impacts of climate change, can help in the global efforts to avert climate crisis by adopting a comprehensive energy transition plan. The government must do this with the power consumers in mind. We need strong action, which will ensure that Filipinos will be paying less to keep their lights on.
It’s encouraging to know that Meralco, the country’s largest utility distribution company, supports the zero-carbon emission global plan. Meralco PowerGen, the power generation arm of Meralco, said it supports DOE’s energy mix plan to ensure the country’s energy security. The company is focusing on sustaining energy for the country’s future through the implementation of an energy transition plan.
MGen President and CEO Rogelio Singson said that contrary to widespread belief that the company is purely focusing on building coal-fired power plants, the company is now into an energy transition plan, which will allow them to introduce RE sources to generate additional power supply. Singson said: “We will develop more renewable projects and, at the same time, be conscious of our need to generate lowest cost electricity to reach the farthest communities in the country.”
https://businessmirror.com.ph/2020/12/24/phl-needs-a-clear-energy-transition-plan/
Recent reports on vaccines working effectively make us optimistic about the Philippine economic forecast in 2021. Effective vaccines will help ignite faster economic recovery. Government has said that gross domestic product growth would recover and expand in 2021 by 6.5 percent to 7.5 percent. Global financial giant Morgan Stanley is more bullish about the Philippines’s strong economic rebound next year against a backdrop of low inflation and the government’s infrastructure development push. In a recent report, Morgan Stanley hiked its 2021 GDP growth forecast for the Philippines to 13.5 percent from 13.1 percent.
Predictions that the Philippines can come out of the Covid-19 crisis with enhanced economic competitiveness are most welcome. However, historical data has shown that when the Philippines experienced fast economic growth, that expansion was directly proportional to electricity consumption. Thus, a sustained GDP growth entails rising demand in electricity.
Here’s the good news: Amid the pandemic, power rates have been on a downward trend as Meralco announced another reduction in consumers’ electricity bills, pushing rates to their lowest in three years. Meralco recently said that customers will have a net rate reduction of P1.3870 per kWh, equivalent to a bill reduction of more than P277 for a 200-kWh household. The lower power rates were partly attributed to Meralco’s new Power Supply Agreements, secured after a transparent competitive selection process last year. The new PSAs resulted in additional power supply and capacity to the grid, while leading to lower electricity prices for consumers.
Now the bad news: Despite the downward power rates trend, the current campaign for renewable energy (RE) as an immediate alternative source to produce baseload capacity may backfire on consumers in the short-term. That’s because the country’s power grid is not yet suited to handle 100-percent renewable energy. If the economy has to grow next year as projected, more baseload power is needed.
Here’s the tricky part: Power generation companies running natural gas power plants also claim that natural gas is a cleaner power source compared with coal, which is cheaper. This is untrue, according to National Energy Technology Laboratory in the US. While natural gas emits 50 percent less carbon dioxide, it doesn’t mean it’s zero CO2, NETL said. CO2 is not only the harmful emission generated by natural gas development. It also generates methane, which, according to NETL, is a very powerful greenhouse gas. In the first two decades after its release, methane is 84 times more potent than carbon dioxide.
No one disagrees with the use of renewable energy. However, at its technological infancy, RE is neither cheap nor reliable. With the exception of hydroelectric plants, RE is still an expensive and unreliable option for a country emerging from Covid devastation. By the sheer volume of our rising power demand based on our 2021 economic growth forecast, we need cheap and reliable sources of power that can provide us with a stable baseload generating capacity. That will insulate us from shortages and prevent speculators from playing the wholesale electricity spot market every time reserves become thin.
The Philippines, which is highly vulnerable to the impacts of climate change, can help in the global efforts to avert climate crisis by adopting a comprehensive energy transition plan. The government must do this with the power consumers in mind. We need strong action, which will ensure that Filipinos will be paying less to keep their lights on.
It’s encouraging to know that Meralco, the country’s largest utility distribution company, supports the zero-carbon emission global plan. Meralco PowerGen, the power generation arm of Meralco, said it supports DOE’s energy mix plan to ensure the country’s energy security. The company is focusing on sustaining energy for the country’s future through the implementation of an energy transition plan.
MGen President and CEO Rogelio Singson said that contrary to widespread belief that the company is purely focusing on building coal-fired power plants, the company is now into an energy transition plan, which will allow them to introduce RE sources to generate additional power supply. Singson said: “We will develop more renewable projects and, at the same time, be conscious of our need to generate lowest cost electricity to reach the farthest communities in the country.”
AC Energy infuses P350M to land unit
By: Ronnel Domingo - 04:04 AM December 24, 2020
https://business.inquirer.net/314633/ac-energy-infuses-p350m-to-land-unit
AC Energy Philippines Inc. (Acen) is infusing P350 million into its subsidiary Buendia Christiana Holdings Corp. (BCHC) to support the latter’s acquisition of land that will be used in Acen’s potential projects.Acen said in a disclosure it signed an agreement with BCHC for the subscription of 3.5 million preferred shares in BCHC at P100 apiece.
The total amount is to be paid with an initial P150 million, and the remainder to be paid in tranches on demand.
“The subscription will be used by BCHC to fund acquisition of potential project sites,” the Ayala group’s power generation platform said.
BCHC is a special purpose vehicle set up to own land for Acen’s development projects.
Earlier this week, Acen said the Philippine Stock Exchange approved last Dec. 16 its application for the listing of close to 2.27 billion shares.
Acen is gearing up for a stocks right offering, with the shares to be issued priced at P2.37 apiece, subject to approval by the Securities and Exchange Commission.Acen expects to complete in the next three quarters its transformation from what was Phinma Energy Corp. into the Ayala group’s power generation platform for both domestic and overseas projects.
Through this transition, Acen plans to raise as much as $600 million, which will help in achieving their goal of building a portfolio of 5,000 megawatts of renewable energy capacity by 2025.Company president John Eric Francia earlier said Acen was already past the halfway mark with 2,550 MW, expressing confidence that the goal will be met ahead of schedule or as early as next year.
Acen already has 1,350 MW of renewable capacity under its belt and by next year, the company expects to add 1,200 MW.
This additional capacity represents Acen’s equity in various projects across the region—the Philippines, Australia, India and Vietnam—that have an aggregate renewable energy-based generating capacity of 1,500 MW. INQ
https://business.inquirer.net/314633/ac-energy-infuses-p350m-to-land-unit
AC Energy Philippines Inc. (Acen) is infusing P350 million into its subsidiary Buendia Christiana Holdings Corp. (BCHC) to support the latter’s acquisition of land that will be used in Acen’s potential projects.Acen said in a disclosure it signed an agreement with BCHC for the subscription of 3.5 million preferred shares in BCHC at P100 apiece.
The total amount is to be paid with an initial P150 million, and the remainder to be paid in tranches on demand.
“The subscription will be used by BCHC to fund acquisition of potential project sites,” the Ayala group’s power generation platform said.
BCHC is a special purpose vehicle set up to own land for Acen’s development projects.
Earlier this week, Acen said the Philippine Stock Exchange approved last Dec. 16 its application for the listing of close to 2.27 billion shares.
Acen is gearing up for a stocks right offering, with the shares to be issued priced at P2.37 apiece, subject to approval by the Securities and Exchange Commission.Acen expects to complete in the next three quarters its transformation from what was Phinma Energy Corp. into the Ayala group’s power generation platform for both domestic and overseas projects.
Through this transition, Acen plans to raise as much as $600 million, which will help in achieving their goal of building a portfolio of 5,000 megawatts of renewable energy capacity by 2025.Company president John Eric Francia earlier said Acen was already past the halfway mark with 2,550 MW, expressing confidence that the goal will be met ahead of schedule or as early as next year.
Acen already has 1,350 MW of renewable capacity under its belt and by next year, the company expects to add 1,200 MW.
This additional capacity represents Acen’s equity in various projects across the region—the Philippines, Australia, India and Vietnam—that have an aggregate renewable energy-based generating capacity of 1,500 MW. INQ
Electricity restored in ‘Vicky’-hit areas
By Jordeene B. Lagare December 24, 2020
https://www.manilatimes.net/2020/12/24/news/regions/electricity-restored-in-vicky-hit-areas/816324/
POWER supply had been restored in the majority of areas hit by Typhoon “Vicky” (international name: “Krovanh”), the National Electrification Administration (NEA) said on Tuesday.
As of Monday, electricity was back to normal in many areas in the provinces of Surigao del Sur, Agusan del Sur and Cagayan, based on a monitoring report of the NEA Disaster Risk Reduction and Management Department.
The Surigao del Sur 1 Electric Cooperative Inc. (Surseco 1) reported that power in the municipalities of Hinatuan and Barobo had been fully restored, while Bislig City and the towns of Lingig and Tagbina were partly restored.
The Agusan del Sur Electric Cooperative Inc. has completely restored power distribution services in Bayugan City, Esperanza, La Paz, Loreto, Prosperidad, Rosario, San Francisco, San Luis, Santa Josefa, Sibagat, Talacogon, Trento and Veruela and partly restored them in Bunawan.
Meanwhile, the Cagayan 1 Electric Cooperative Inc. reported that it had fully restored electricity in Baggao, Piat, Rizal, Sto. Niño, Iguig, Peñablanca and Tuao; and partly restored it in Tuguegarao City and the towns of Alcala, Amulung, Enrile and Solana.
The same report also showed Surseco 1 suffered P1.524 million worth of damage from Vicky.
The NEA assured those affected that the work continues to restore electricity to the remaining areas serviced by three electric cooperatives in areas hit by the typhoon.
Tropical Depression Vicky, the 22nd tropical cyclone to enter the country this year and the first for December, left the Philippine area of responsibility on Sunday, according to state weather bureau Philippine Atmospheric, Geophysical and Astronomical Services Administration.
https://www.manilatimes.net/2020/12/24/news/regions/electricity-restored-in-vicky-hit-areas/816324/
POWER supply had been restored in the majority of areas hit by Typhoon “Vicky” (international name: “Krovanh”), the National Electrification Administration (NEA) said on Tuesday.
As of Monday, electricity was back to normal in many areas in the provinces of Surigao del Sur, Agusan del Sur and Cagayan, based on a monitoring report of the NEA Disaster Risk Reduction and Management Department.
The Surigao del Sur 1 Electric Cooperative Inc. (Surseco 1) reported that power in the municipalities of Hinatuan and Barobo had been fully restored, while Bislig City and the towns of Lingig and Tagbina were partly restored.
The Agusan del Sur Electric Cooperative Inc. has completely restored power distribution services in Bayugan City, Esperanza, La Paz, Loreto, Prosperidad, Rosario, San Francisco, San Luis, Santa Josefa, Sibagat, Talacogon, Trento and Veruela and partly restored them in Bunawan.
Meanwhile, the Cagayan 1 Electric Cooperative Inc. reported that it had fully restored electricity in Baggao, Piat, Rizal, Sto. Niño, Iguig, Peñablanca and Tuao; and partly restored it in Tuguegarao City and the towns of Alcala, Amulung, Enrile and Solana.
The same report also showed Surseco 1 suffered P1.524 million worth of damage from Vicky.
The NEA assured those affected that the work continues to restore electricity to the remaining areas serviced by three electric cooperatives in areas hit by the typhoon.
Tropical Depression Vicky, the 22nd tropical cyclone to enter the country this year and the first for December, left the Philippine area of responsibility on Sunday, according to state weather bureau Philippine Atmospheric, Geophysical and Astronomical Services Administration.
DOE, DPWH eye joint circular to relocate over 50,000 electric poles
posted December 24, 2020 at 07:35 pm by Alena Mae S. Flores
https://manilastandard.net/business/power-technology/342871/doe-dpwh-eye-joint-circular-to-relocate-over-50-000-electric-poles-.html
The Department of Energy and the Department of Public Works and Highways plan to issue a third joint circular to relocate over 50,000 electric poles obstructing national roads and highways.
The draft circular will provide a the mechanism for the immediate relocation of electric poles within the national government’s right of way and give a timeline.
Joint Circular No. 1, series of 2017, prescribed the uniform guidelines and procedures for the proper payment of compensation and recovery of cost to relocate electric cooperative and sub-transmission lines.
Section 13 of JC1 provides that “within one year from the effectivity of this joint circular, the National Electrification Administration and Electric Cooperative shall cause the removal and relocation of any improperly located facility in the government’s right-of-way, subject to payment of compensation provided in the circular”.
The DOE and the DPWH adopted Joint Circular No. 2 to extend the period of relocation of obstructing facilities provided in Section 13 of JC1, for up to Dec. 31, 2019. The deadline provided in JC2 lapsed while a significant number of poles remained in the government’s right-of-way that raised public safety concerns.
Senator Sherwin Gatchalian, in a hearing called by Senate Committee on Energy, raised concerns over the delay in the relocation of the poles. About 59,640 electric poles still need to be relocated and compensated, according to the NEA.
Under the proposed third circular, all relevant stakeholders recognize that the period provided in JC2 is not sufficient as relocation of the poles were not timely implemented because of circumstances beyond the control of the ECs and the concerned national government agencies.
“Considering that removal of the electric poles obstructing in the national roads and highways is still a primordial concern of the government, the IATF, in its Resolution No. 1 Series of 2020, recommended to dispense the classification and deadline of the submission of the requisites for the 59,640 electric poles endorsed by NEA, and extend the period of relocation set forth in JC1 and JC2, to accomplish the complete clearing of electric poles in the government’s right-of-way,” the circular read.
The IATF also recommended the adoption of a new DOE and DPWH joint circular to provide mechanisms and timeline for the immediate relocation of electric poles within the government’s right-of-way.
https://manilastandard.net/business/power-technology/342871/doe-dpwh-eye-joint-circular-to-relocate-over-50-000-electric-poles-.html
The Department of Energy and the Department of Public Works and Highways plan to issue a third joint circular to relocate over 50,000 electric poles obstructing national roads and highways.
The draft circular will provide a the mechanism for the immediate relocation of electric poles within the national government’s right of way and give a timeline.
Joint Circular No. 1, series of 2017, prescribed the uniform guidelines and procedures for the proper payment of compensation and recovery of cost to relocate electric cooperative and sub-transmission lines.
Section 13 of JC1 provides that “within one year from the effectivity of this joint circular, the National Electrification Administration and Electric Cooperative shall cause the removal and relocation of any improperly located facility in the government’s right-of-way, subject to payment of compensation provided in the circular”.
The DOE and the DPWH adopted Joint Circular No. 2 to extend the period of relocation of obstructing facilities provided in Section 13 of JC1, for up to Dec. 31, 2019. The deadline provided in JC2 lapsed while a significant number of poles remained in the government’s right-of-way that raised public safety concerns.
Senator Sherwin Gatchalian, in a hearing called by Senate Committee on Energy, raised concerns over the delay in the relocation of the poles. About 59,640 electric poles still need to be relocated and compensated, according to the NEA.
Under the proposed third circular, all relevant stakeholders recognize that the period provided in JC2 is not sufficient as relocation of the poles were not timely implemented because of circumstances beyond the control of the ECs and the concerned national government agencies.
“Considering that removal of the electric poles obstructing in the national roads and highways is still a primordial concern of the government, the IATF, in its Resolution No. 1 Series of 2020, recommended to dispense the classification and deadline of the submission of the requisites for the 59,640 electric poles endorsed by NEA, and extend the period of relocation set forth in JC1 and JC2, to accomplish the complete clearing of electric poles in the government’s right-of-way,” the circular read.
The IATF also recommended the adoption of a new DOE and DPWH joint circular to provide mechanisms and timeline for the immediate relocation of electric poles within the government’s right-of-way.
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