February 26, 2021 | 12:07 am
https://www.bworldonline.com/meralco-says-power-bill-may-drop-in-march/
CUSTOMERS of Manila Electric Co. (Meralco) have a “strong” chance of seeing their electricity bill next month to be lower as it will include the average refund rate of P0.1528 per kilowatt-hour (kWh) for “over-recoveries” as ordered by the Energy Regulatory Commission (ERC), a company official said on Thursday.
“Based on initial projections, there is a strong likelihood that power rates for March 2021 will go down, as this will be the second consecutive month of decrease for the year,” Meralco Vice-President and Head of Corporate Communications Joe R. Zaldarriaga said in a Viber message.
He added that the distribution utility was still waiting for the final bills from its power suppliers.
Mr. Zaldarriaga explained that next month’s power rate would include the average refund rate of P0.1528 per kWh based on the firm’s distribution rate “true-up” or Meralco’s actual weighted average tariff, which is derived by dividing its revenues by the total kilowatt-hour sales.
Over-recoveries happen when the actual weighted average rate breached the price cap based on the ERC-approved interim average rate.
Last week, the ERC announced that it had released the order for Meralco to refund P13.89 billion in over-recoveries based on the power firm’s actual weighted average tariff from July 2015 to Nov. 2020.
The refund would take effect starting March. The total amount must be refunded within 24 months or until fully returned to power consumers, according to the commission.
“Meralco’s refund rate will be reflected as a separate line item in the bills of the customers during the refund period,” Mr. Zaldarriaga said.
According to the Meralco executive, the projected decrease in power rates would continue “the downward trend in electricity costs, as overall rates have gone down by more than P1 per kWh since the start of 2020.”
On Feb. 8, Meralco announced that typical households in Metro Manila should expect to see a P14 drop in power rates this month. It attributed the decrease to lower generation charges. It said that the overall power rate in February stood at P8.6793 per kWh, which was P0.0704 per kWh lower than the rate in January.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Angelica Y. Yang
Friday, February 26, 2021
Vivant acquires Bukidnon power projects
Danessa Rivera (The Philippine Star) - February 25, 2021 - 12:00am
https://www.philstar.com/business/2021/02/25/2080125/vivant-acquires-bukidnon-power-projects
MANILA, Philippines — Cebu-based Vivant Corp. is expanding in the Mindanao region with the acquisition of two diesel power plants in Bukidnon for over P430 million.
In a disclosure to the Philippine Stock Exchange Tuesday, listed Vivant Corp. said its whole owned units Vivant Energy Corp. and Amberdust Holding Corp. (AHC) signed share sale and purchase agreements (SSPAs) to acquire equity interests in Bukidnon Power Corp. (BPC) and North Bukidnon Power Corp. (NBPC).
Under the deal, Vivant Energy and AHC will acquire 90 percent of the outstanding shares of BPC and NBPC from its existing shareholders amounting P205.54 million and P228.28 million, respectively.
Vivant said 90 percent of the shares will be acquired by Vivant Energy and the remaining 10 percent by AHC.
The acquisition will contribute to the continued expansion of the company’s business activities in the Mindanao region, Vivant said.
The investment also aims to further ensure stability and reliability of the power supply in Bukidnon Province, particularly during peak hours.
“We are confident in the recovery and growth of the Philippine economy, and we believe that Mindanao will play a more significant role in it. That growth will require a stable and reliable power supply, which we are committed to provide,” Vivant Energy EVP and COO Emil Andre Garcia said in a statement.
NBPC supplies five megawatts (MW) of the peaking power requirement in the franchise area of Bukidnon Second Electric Cooperative Inc. through its bunker-diesel power plant in Lantapan, Bukidnon.
Meanwhile, BPC is the owner of two bunker-diesel power plants that are both contracted to supply the energy requirements of First Bukidnon Electric Cooperative Inc.
Vivant continues to expand its conventional energy generation portfolio. It has also taken firm steps in finding brownfield and greenfield renewable projects, as well as in technologies that combine both renewable and conventional energy.
https://www.philstar.com/business/2021/02/25/2080125/vivant-acquires-bukidnon-power-projects
MANILA, Philippines — Cebu-based Vivant Corp. is expanding in the Mindanao region with the acquisition of two diesel power plants in Bukidnon for over P430 million.
In a disclosure to the Philippine Stock Exchange Tuesday, listed Vivant Corp. said its whole owned units Vivant Energy Corp. and Amberdust Holding Corp. (AHC) signed share sale and purchase agreements (SSPAs) to acquire equity interests in Bukidnon Power Corp. (BPC) and North Bukidnon Power Corp. (NBPC).
Under the deal, Vivant Energy and AHC will acquire 90 percent of the outstanding shares of BPC and NBPC from its existing shareholders amounting P205.54 million and P228.28 million, respectively.
Vivant said 90 percent of the shares will be acquired by Vivant Energy and the remaining 10 percent by AHC.
The acquisition will contribute to the continued expansion of the company’s business activities in the Mindanao region, Vivant said.
The investment also aims to further ensure stability and reliability of the power supply in Bukidnon Province, particularly during peak hours.
“We are confident in the recovery and growth of the Philippine economy, and we believe that Mindanao will play a more significant role in it. That growth will require a stable and reliable power supply, which we are committed to provide,” Vivant Energy EVP and COO Emil Andre Garcia said in a statement.
NBPC supplies five megawatts (MW) of the peaking power requirement in the franchise area of Bukidnon Second Electric Cooperative Inc. through its bunker-diesel power plant in Lantapan, Bukidnon.
Meanwhile, BPC is the owner of two bunker-diesel power plants that are both contracted to supply the energy requirements of First Bukidnon Electric Cooperative Inc.
Vivant continues to expand its conventional energy generation portfolio. It has also taken firm steps in finding brownfield and greenfield renewable projects, as well as in technologies that combine both renewable and conventional energy.
PSALM rejects SPPC’s new condition for prepayment of dues
By Angela Celis-February 25, 2021
https://malaya.com.ph/index.php/news_business/psalm-rejects-sppcs-new-condition-for-prepayment-of-dues/
The Power Sector Assets and Liabilities Management Corp. (PSALM) has rejected the new condition given by San Miguel Corp.’s (SMC) power unit, for its offer to fully pay in advance its monthly dues for the 1,200 megawatts Ilijan Power Plant, the Department of Finance (DOF) said yesterday.
In a statement, the DOF said Carlos Dominguez, finance secretary, asked PSALM for an update on South Premiere Power Corp.’s (SPPC) offer to fully settle in advance its monthly payments due under the Independent Power Producer Administrator (IPPA) agreement with PSALM for the Ilijan Power Plant.
Irene Besido Garcia, PSALM president and chief executive officer, said SPPC’s offer now carries with it a new condition that “entirely differs from the tenor of SPPC’s original offer.”
To recall, the DOF said SPPC publicly announced last year that it was willing to prepay these monthly payments to PSALM “without prejudice” to the pending case it has with the latter.
Garcia however reported that SPPC’s latest offer, which was outlined in a letter dated January 11, has the condition that PSALM should cede control and ownership of the Ilijan Power Plant to SPPC upon full settlement of the monthly payments, and ahead of the June 2022 date of turnover provided in the IPPA agreement.
According to Garcia, this new condition of SPPC was neither indicated in SPPC’s original offer letter to PSALM last year, nor mentioned during the July 2 meeting between representatives of SPPC and PSALM.
Based on PSALM’s data, the monthly payments due from SPPC for the period of January 2021 until June 2022 is about P14 billion.
PSALM has already sent a response to SPPC last January 18, Garcia said, pointing out that the agency’s acceptance of the prepayment offer under the new condition that it will “cede control and ownership of the Ilijan Power Station to SPPC” will “pre-empt any ruling of the judicial court on the matter and will undoubtedly prejudice PSALM’s legal position.”
In the same response, the agency reminded SPPC that in PSALM’s letter of August 4, it was categorically stated therein that “PSALM is willing to accept SPPC’s offer, provided that such acceptance is without prejudice to PSALM’s legal position” in the pending case.
The DOF said SPPC, a subsidiary of SMC Global Power Holdings Corp., still owes PSALM P23.07 billion in generation payments as of end-December 2020 per PSALM’s books. The computation of generation payments due PSALM from SPPC is the subject of the pending court case.
SPPC was appointed the IPPA for the Ilijan Power Plant in 2010.
https://malaya.com.ph/index.php/news_business/psalm-rejects-sppcs-new-condition-for-prepayment-of-dues/
The Power Sector Assets and Liabilities Management Corp. (PSALM) has rejected the new condition given by San Miguel Corp.’s (SMC) power unit, for its offer to fully pay in advance its monthly dues for the 1,200 megawatts Ilijan Power Plant, the Department of Finance (DOF) said yesterday.
In a statement, the DOF said Carlos Dominguez, finance secretary, asked PSALM for an update on South Premiere Power Corp.’s (SPPC) offer to fully settle in advance its monthly payments due under the Independent Power Producer Administrator (IPPA) agreement with PSALM for the Ilijan Power Plant.
Irene Besido Garcia, PSALM president and chief executive officer, said SPPC’s offer now carries with it a new condition that “entirely differs from the tenor of SPPC’s original offer.”
To recall, the DOF said SPPC publicly announced last year that it was willing to prepay these monthly payments to PSALM “without prejudice” to the pending case it has with the latter.
Garcia however reported that SPPC’s latest offer, which was outlined in a letter dated January 11, has the condition that PSALM should cede control and ownership of the Ilijan Power Plant to SPPC upon full settlement of the monthly payments, and ahead of the June 2022 date of turnover provided in the IPPA agreement.
According to Garcia, this new condition of SPPC was neither indicated in SPPC’s original offer letter to PSALM last year, nor mentioned during the July 2 meeting between representatives of SPPC and PSALM.
Based on PSALM’s data, the monthly payments due from SPPC for the period of January 2021 until June 2022 is about P14 billion.
PSALM has already sent a response to SPPC last January 18, Garcia said, pointing out that the agency’s acceptance of the prepayment offer under the new condition that it will “cede control and ownership of the Ilijan Power Station to SPPC” will “pre-empt any ruling of the judicial court on the matter and will undoubtedly prejudice PSALM’s legal position.”
In the same response, the agency reminded SPPC that in PSALM’s letter of August 4, it was categorically stated therein that “PSALM is willing to accept SPPC’s offer, provided that such acceptance is without prejudice to PSALM’s legal position” in the pending case.
The DOF said SPPC, a subsidiary of SMC Global Power Holdings Corp., still owes PSALM P23.07 billion in generation payments as of end-December 2020 per PSALM’s books. The computation of generation payments due PSALM from SPPC is the subject of the pending court case.
SPPC was appointed the IPPA for the Ilijan Power Plant in 2010.
GNPower Mariveles coal plant unit goes on unplanned outage
February 25, 2021 | 12:06 am
https://www.bworldonline.com/gnpower-mariveles-coal-plant-unit-goes-on-unplanned-outage/
ABOITIZ Power Corp. said on Wednesday that a unit of its 632-megawatt (MW) pulverized coal-fired power plant in Mariveles, Bataan went on an unexpected shutdown due to a damaged boiler.
“The outage is attributable to damage found in a portion of the boiler of GMEC’s (GNPower Mariveles Energy Center Ltd. Co.) Unit 1,” AboitizPower said in a disclosure to the local bourse.
Restoration works are targeted to be completed by the third quarter, it said.
GMEC is a private limited partnership that handles the development, construction, operation, and ownership of two units of a pulverized coal-fired power plant in Mariveles. Each unit has a capacity of 316 MW.
AboitizPower subsidiary Therma Power Inc.; ACE Mariveles Power Ltd. Co; and Power Partners Ltd. Co. hold partnership interests in GMEC.
AboitizPower said it projects the restoration of the damaged unit to be completed by the third quarter, but the timeline could extend to the end of the year.
“The procurement of the necessary services for restoration works is underway, and, based on AboitizPower’s current assessment, completion of said works and Unit 1’s return to service are targeted by Q3 2021, but may take up to year-end 2021,” AboitizPower said.
The firm said that GMEC’s insurance brokers and adjusters are in the process of filing insurance claims. The firm said that it was also coordinating with regulators and key stakeholders.
Unit 1 of GMEC’s coal plant delivers a net sellable capacity of 247 MW, which is around 7% of AboitizPower’s total attributable net sellable capacity of 3,494 MW. GMEC makes up 13% of the total installed capacity under the AboitizPower’s market control of 3,850 MW.
AboitizPower has ownership interests in nine distribution utilities, which supply power to franchise areas covering a total of 18 cities and municipalities nationwide.
AboitizPower shares on Wednesday shed 1.57% or 0.40 centavos to finish at P25 apiece. — Angelica Y. Yang
https://www.bworldonline.com/gnpower-mariveles-coal-plant-unit-goes-on-unplanned-outage/
ABOITIZ Power Corp. said on Wednesday that a unit of its 632-megawatt (MW) pulverized coal-fired power plant in Mariveles, Bataan went on an unexpected shutdown due to a damaged boiler.
“The outage is attributable to damage found in a portion of the boiler of GMEC’s (GNPower Mariveles Energy Center Ltd. Co.) Unit 1,” AboitizPower said in a disclosure to the local bourse.
Restoration works are targeted to be completed by the third quarter, it said.
GMEC is a private limited partnership that handles the development, construction, operation, and ownership of two units of a pulverized coal-fired power plant in Mariveles. Each unit has a capacity of 316 MW.
AboitizPower subsidiary Therma Power Inc.; ACE Mariveles Power Ltd. Co; and Power Partners Ltd. Co. hold partnership interests in GMEC.
AboitizPower said it projects the restoration of the damaged unit to be completed by the third quarter, but the timeline could extend to the end of the year.
“The procurement of the necessary services for restoration works is underway, and, based on AboitizPower’s current assessment, completion of said works and Unit 1’s return to service are targeted by Q3 2021, but may take up to year-end 2021,” AboitizPower said.
The firm said that GMEC’s insurance brokers and adjusters are in the process of filing insurance claims. The firm said that it was also coordinating with regulators and key stakeholders.
Unit 1 of GMEC’s coal plant delivers a net sellable capacity of 247 MW, which is around 7% of AboitizPower’s total attributable net sellable capacity of 3,494 MW. GMEC makes up 13% of the total installed capacity under the AboitizPower’s market control of 3,850 MW.
AboitizPower has ownership interests in nine distribution utilities, which supply power to franchise areas covering a total of 18 cities and municipalities nationwide.
AboitizPower shares on Wednesday shed 1.57% or 0.40 centavos to finish at P25 apiece. — Angelica Y. Yang
Tuesday, February 23, 2021
Meralco to award CSP contracts
Danessa Rivera (The Philippine Star) - February 23, 2021 - 12:00am
https://www.philstar.com/business/2021/02/23/2079656/meralco-award-csp-contracts
MANILA, Philippines — Manila Electric Co. (Meralco) is set to award contracts to winning bidders this Friday once the Third-Party Bids and Awards Committee (TPBAC) completes post-qualification of bids for its 1,800-megawatt (MW) competitive selection process (CSP).
“The post-qualification process has seven days, at most, to be completed. Thus, the latest date for releasing a Notice of Award is on Friday, assuming compliance with all post qualification requirements,” Meralco vice president and head of Utility Economics Department Lawrence Fernandez said.
Last week, the TPBAC received six bids for the 1,800-MW supply, with the two best bids from Excellent Energy Resources Inc. (EERI) and Masinloc Power Partners Co. Ltd. (MPPCL).
EERI offered to supply Meralco 1,200 MW from a natural gas-fired power plant at a levelized cost of electricity (LCOE) of P4.1462 per kilowatt hour (kWh).
Meanwhile, MPPCL’s offer is 600 MW from a coal-fired power plant at P4.2605 per kWh.
Both offers are significantly below the LCOE reserve price of P5.2559 per kWh.
Energy Secretary Alfonso Cusi welcomed Meralco’s CSP, which had “very encouraging” results.
“It will definitely bring down rates, which would be to the benefit of our consumers. The CSP is a work in progress, which aims to help us achieve electricity tariff levels that are affordable and competitive enough to attract both foreign and local investors to do business in the Philippines,” he said.
EERI, a unit of SMC Global Power Holdings Inc., is putting up the 1,200-MW Ilijan Natural Gas-Fired Plant Project in Batangas.
Located in Zambales, MPPCL was acquired by SMC Global Power Holdings from Thai power firm Electricity Generating Public Company Limited (EGCO) and American energy giant AES Corp. in 2018.
Meralco successfully conducted its first CSP in September 2019 for 1,200-MW baseload supply for 10 years and 500 MW of mid-merit capacity for five years.
Meralco signed power supply agreements (PSAs) with First Gen Hydro Power Corp., Phinma Energy Corp., and South Premiere Power Corp. (SPPC) of the San Miguel Group for 500 MW supply while PSAs were inked with Phinma Energy Corp., San Miguel Energy Corp., and South Premiere Power Corp. (SPPC) to supply 1,200 MW for 10 years.
https://www.philstar.com/business/2021/02/23/2079656/meralco-award-csp-contracts
MANILA, Philippines — Manila Electric Co. (Meralco) is set to award contracts to winning bidders this Friday once the Third-Party Bids and Awards Committee (TPBAC) completes post-qualification of bids for its 1,800-megawatt (MW) competitive selection process (CSP).
“The post-qualification process has seven days, at most, to be completed. Thus, the latest date for releasing a Notice of Award is on Friday, assuming compliance with all post qualification requirements,” Meralco vice president and head of Utility Economics Department Lawrence Fernandez said.
Last week, the TPBAC received six bids for the 1,800-MW supply, with the two best bids from Excellent Energy Resources Inc. (EERI) and Masinloc Power Partners Co. Ltd. (MPPCL).
EERI offered to supply Meralco 1,200 MW from a natural gas-fired power plant at a levelized cost of electricity (LCOE) of P4.1462 per kilowatt hour (kWh).
Meanwhile, MPPCL’s offer is 600 MW from a coal-fired power plant at P4.2605 per kWh.
Both offers are significantly below the LCOE reserve price of P5.2559 per kWh.
Energy Secretary Alfonso Cusi welcomed Meralco’s CSP, which had “very encouraging” results.
“It will definitely bring down rates, which would be to the benefit of our consumers. The CSP is a work in progress, which aims to help us achieve electricity tariff levels that are affordable and competitive enough to attract both foreign and local investors to do business in the Philippines,” he said.
EERI, a unit of SMC Global Power Holdings Inc., is putting up the 1,200-MW Ilijan Natural Gas-Fired Plant Project in Batangas.
Located in Zambales, MPPCL was acquired by SMC Global Power Holdings from Thai power firm Electricity Generating Public Company Limited (EGCO) and American energy giant AES Corp. in 2018.
Meralco successfully conducted its first CSP in September 2019 for 1,200-MW baseload supply for 10 years and 500 MW of mid-merit capacity for five years.
Meralco signed power supply agreements (PSAs) with First Gen Hydro Power Corp., Phinma Energy Corp., and South Premiere Power Corp. (SPPC) of the San Miguel Group for 500 MW supply while PSAs were inked with Phinma Energy Corp., San Miguel Energy Corp., and South Premiere Power Corp. (SPPC) to supply 1,200 MW for 10 years.
Fuel marking program yields P193 billion in taxes
February 23, 2021 | 12:32 am
https://www.bworldonline.com/fuel-marking-program-yields-p193-billion-in-taxes/
THE government’s fuel marking program generated P192.756 billion from duties and taxes on fuel products since it was launched in September 2019, data from the Department of Finance (DoF) showed on Monday.
The Bureau of Customs (BoC) collected P166.176 billion of duties and taxes from September 2019 to Feb. 17 this year.
At the same time, the Bureau of Internal Revenue (BIR) generated P26.58 billion in excise taxes from December 2019 to Feb. 11 this year.
The two agencies processed 19.903 billion liters of fuel products as of Feb. 17, with 60% or 12.05 billion liters processed during the first year of implementation.
By region, 73.8% or 14.7 billion liters of fuel were marked in Luzon, 21% or 4.2 billion liters in Mindanao and 5% or over one billion liters in Visayas.
Diesel accounted for 61% or 12.2 billion liters of the total, followed by gasoline with 38% or 7.6 billion liters and kerosene with 105 million liters.
The fuel marking program aims to deter oil smuggling by injecting the products with a special dye to signify tax compliance. The absence of the dye is deemed prima facie evidence that the fuel was smuggled.
The government started collecting in September 2020 the fuel marking fee of P0.06884 per liter, inclusive of value-added tax, charged on all manufactured, refined or imported petroleum products.
The fee was imposed after the one-year program for subsidized fees ended that month. Oil companies will now have to shoulder the costs in the next four years.
Meanwhile, Albay Rep. and House Committee on Ways and Means Chair Jose Ma. Clemente S. Salceda said Customs should beef up efforts against fuel smuggling, which cost P357 billion in foregone revenues from 2010 to 2019.
“While fuel marking has helped lower smuggling, the bleeding on the revenue side is still growing because we raised taxes on fuel products in 2018,” he said in a statement.
Mr. Salceda called on the BoC and the DoF to form a task force against fuel smuggling.
“I am urging this task force to be created. Undertake programs and audits that will catch fuel smuggling. Expand the fuel-marking program. Help us with new policy proposals to close loopholes on fuel smuggling. If necessary, we are willing to expand the budget for surveillance and investigation,” he said.
Customs Commissioner Rey Leonardo B. Guerrero said the agency already has a task force in charge of monitoring the fuel marking program. The task force includes representatives from the BoC, National Bureau of Investigation, Philippine Coast Guard, Department of Energy, and the Bureau of Internal Revenue. — Beatrice M. Laforga and Gillian M.Cortez
https://www.bworldonline.com/fuel-marking-program-yields-p193-billion-in-taxes/
THE government’s fuel marking program generated P192.756 billion from duties and taxes on fuel products since it was launched in September 2019, data from the Department of Finance (DoF) showed on Monday.
The Bureau of Customs (BoC) collected P166.176 billion of duties and taxes from September 2019 to Feb. 17 this year.
At the same time, the Bureau of Internal Revenue (BIR) generated P26.58 billion in excise taxes from December 2019 to Feb. 11 this year.
The two agencies processed 19.903 billion liters of fuel products as of Feb. 17, with 60% or 12.05 billion liters processed during the first year of implementation.
By region, 73.8% or 14.7 billion liters of fuel were marked in Luzon, 21% or 4.2 billion liters in Mindanao and 5% or over one billion liters in Visayas.
Diesel accounted for 61% or 12.2 billion liters of the total, followed by gasoline with 38% or 7.6 billion liters and kerosene with 105 million liters.
The fuel marking program aims to deter oil smuggling by injecting the products with a special dye to signify tax compliance. The absence of the dye is deemed prima facie evidence that the fuel was smuggled.
The government started collecting in September 2020 the fuel marking fee of P0.06884 per liter, inclusive of value-added tax, charged on all manufactured, refined or imported petroleum products.
The fee was imposed after the one-year program for subsidized fees ended that month. Oil companies will now have to shoulder the costs in the next four years.
Meanwhile, Albay Rep. and House Committee on Ways and Means Chair Jose Ma. Clemente S. Salceda said Customs should beef up efforts against fuel smuggling, which cost P357 billion in foregone revenues from 2010 to 2019.
“While fuel marking has helped lower smuggling, the bleeding on the revenue side is still growing because we raised taxes on fuel products in 2018,” he said in a statement.
Mr. Salceda called on the BoC and the DoF to form a task force against fuel smuggling.
“I am urging this task force to be created. Undertake programs and audits that will catch fuel smuggling. Expand the fuel-marking program. Help us with new policy proposals to close loopholes on fuel smuggling. If necessary, we are willing to expand the budget for surveillance and investigation,” he said.
Customs Commissioner Rey Leonardo B. Guerrero said the agency already has a task force in charge of monitoring the fuel marking program. The task force includes representatives from the BoC, National Bureau of Investigation, Philippine Coast Guard, Department of Energy, and the Bureau of Internal Revenue. — Beatrice M. Laforga and Gillian M.Cortez
ERC revises fin’l capability standards’ for GenCos
Published February 23, 2021, 6:00 AM by Myrna M. Velasco
https://mb.com.ph/2021/02/23/erc-revises-finl-capability-standards-for-gencos/
The Energy Regulatory Commission (ERC) has instituted revisions in the ‘financial capability standards’ that generation companies (GenCos) must comply with, primarily in ensuring their operational viability.
The regulatory body stated it comprehended the need to amend and update the ‘financial guidelines’ for the power producer firms, because the parameters measuring their financial capacities had been based on rules drawn up as far back as 15 years ago.
The key amendment, the ERC noted, had been relaxing the 1.5x level of debt service capability ratio (DSCR), because that was still based on standards set in 2005.
The regulatory body added that with such scale of financial standards enforced then, “only 32-percent of the total number of GenCos with issued COCs (certificates of compliance) are compliant with the required 1.5x DSCR.”
The ERC pointed out that the revisions were effected “considering the significant changes in the economic conditions in the Philippines via-a-vis the ERC’s mandate under the EPIRA (Electric Power Industry Reform Act) to ensure quality and reliable delivery of power services to the public, thereby, promoting and protecting consumer interest.”
The industry regulator emphasized “after a thorough review of all information gathered by the Commission pursuant to its regulatory powers, as well as careful evaluation of the comments submitted by the various stakeholders, the ERC finds merit in the proposed amendments to the financial guidelines.”
The ERC thus noted the modifications were cast “with the end view of promoting overall financial viability of the generation sector; safeguard against the risk of financial non-performance; and encourage efficiency to ensure the quality and reliability of supply which will ultimately redound to the protection of public interest.”
It was in July last year when the ERC stepped up soliciting inputs and comments from relevant stakeholders on the propounded tweaks in the financial standards for GenCos.
The industry players which submitted their position papers on that rule-making move of the ERC
include: Aboitiz Power Corporation, SMC Global Power Holdings Corporation and its independent power producer administrator-subsidiaries; Millennium Energy Inc.; Panasia Energy Inc.; AC Energy Corporation; First Gen Corporation; Manila Electric Company; Mindanao Energy Systems Inc.; Global Business Power Corporation; GN Power; Oriental Mindoro Electric Cooperative Inc.; and the Philippine Independent Power Producers Association Inc.
ERC Chairperson Agnes T. Devanadera previously indicated that “the Commission takes cognizance of the fact that we need to update our rules and guidelines to make them responsive and suitable to the prevailing conditions in the electric power industry.”
She explained that from the past decade, “a lot of developments have taken place in the power industry and the economic conditions,” hence, there’s already huge disparity if referenced on the standards laid down way back in 2005.
With the revised guidelines, the regulatory body reiterated, such will guarantee that “the GenCos are financially capable to operate and produce sustainable electricity.”
https://mb.com.ph/2021/02/23/erc-revises-finl-capability-standards-for-gencos/
The Energy Regulatory Commission (ERC) has instituted revisions in the ‘financial capability standards’ that generation companies (GenCos) must comply with, primarily in ensuring their operational viability.
The regulatory body stated it comprehended the need to amend and update the ‘financial guidelines’ for the power producer firms, because the parameters measuring their financial capacities had been based on rules drawn up as far back as 15 years ago.
The key amendment, the ERC noted, had been relaxing the 1.5x level of debt service capability ratio (DSCR), because that was still based on standards set in 2005.
The regulatory body added that with such scale of financial standards enforced then, “only 32-percent of the total number of GenCos with issued COCs (certificates of compliance) are compliant with the required 1.5x DSCR.”
The ERC pointed out that the revisions were effected “considering the significant changes in the economic conditions in the Philippines via-a-vis the ERC’s mandate under the EPIRA (Electric Power Industry Reform Act) to ensure quality and reliable delivery of power services to the public, thereby, promoting and protecting consumer interest.”
The industry regulator emphasized “after a thorough review of all information gathered by the Commission pursuant to its regulatory powers, as well as careful evaluation of the comments submitted by the various stakeholders, the ERC finds merit in the proposed amendments to the financial guidelines.”
The ERC thus noted the modifications were cast “with the end view of promoting overall financial viability of the generation sector; safeguard against the risk of financial non-performance; and encourage efficiency to ensure the quality and reliability of supply which will ultimately redound to the protection of public interest.”
It was in July last year when the ERC stepped up soliciting inputs and comments from relevant stakeholders on the propounded tweaks in the financial standards for GenCos.
The industry players which submitted their position papers on that rule-making move of the ERC
include: Aboitiz Power Corporation, SMC Global Power Holdings Corporation and its independent power producer administrator-subsidiaries; Millennium Energy Inc.; Panasia Energy Inc.; AC Energy Corporation; First Gen Corporation; Manila Electric Company; Mindanao Energy Systems Inc.; Global Business Power Corporation; GN Power; Oriental Mindoro Electric Cooperative Inc.; and the Philippine Independent Power Producers Association Inc.
ERC Chairperson Agnes T. Devanadera previously indicated that “the Commission takes cognizance of the fact that we need to update our rules and guidelines to make them responsive and suitable to the prevailing conditions in the electric power industry.”
She explained that from the past decade, “a lot of developments have taken place in the power industry and the economic conditions,” hence, there’s already huge disparity if referenced on the standards laid down way back in 2005.
With the revised guidelines, the regulatory body reiterated, such will guarantee that “the GenCos are financially capable to operate and produce sustainable electricity.”
DOE expects lower Meralco rates
Published February 22, 2021, 6:30 AM by Myrna M. Velasco
https://mb.com.ph/2021/02/22/doe-expects-lower-meralco-rates/
The lower-than-reserve price offers in the competitive selection process (CSP) of the 1,800 megawatts power supply agreements (PSAs) for power utility giant Manila Electric Company (Meralco) will result in cheaper electricity rates for consumers, according to the Department of Energy.
Energy Secretary Alfonso G. Cusi cited the bid offers as very encouraging. “It will definitely bring down rates which would be to the benefit of our consumers,” Cusi said.
He qualified though that the CSP is a work in progress, which aims to help us achieve electricity tariff levels that are affordable and competitive enough to attract both foreign and local investors to do business in the Philippines.
Bid offers by subsidiary-firms of San Miguel Corporation in the CSP auction of Meralco had been below the reserve price set by its third party bids and awards committee (TPBAC) at P5.2559 per kilowatt hour.
Excellent Energy Resources Inc. of SMC Global Power Holdings Corporation submitted a winning bid of P4.1462 per kWh for 1,200-megawatt of gas-fired power capacity; while its Masinloc Power Partners Co. Ltd. tendered a price offer of P4.2605 per kWh for 600MW of coal-fired power capacity.
The price bid in the gas capacity is cheaper by P1.1097 per kWh if reckoned vis-Ã -vis the reserve price and as calculated on levelized cost of energy (LCOE) basis; while the winning offer in the coal capacity is lower by P0.9954 per kWh.
On the part of Meralco, Lawrence S. Fernandez, vice president of the utility firm and CSP-TPBAC Secretariat, noted that the lower price bids they cornered had been a continuation of the CSP outcomes that they had in 2019 – wherein consumers then were warranted to enjoy savings of as much as P13.86 annually in their electric bills.
“As evidenced in the past, a successful PSA and the resulting PSA signings will result in additional savings, and ultimately, least cost to consumers,” he stressed.
Fernandez emphasized that as of last year, “Meralco’s customers experienced net rate reduction of P1.3870 per kWh, equivalent to bill reduction of more than P277 for a 200-kilowatt hour household.”
The power firm executive further asserted “with this continued downward trend, largely due to these new power supply contracts, Meralcao’s rate today are at their lowest levels in three years.”
For the new capacity additions under the PSAs, SMC previously indicated that it will be expanding its gas-fired power capacity by 1,200 megawatts, proximate to the site of the 1,200MW Ilijan gas facility in Batangas – in which the company serves as independent power producer administrator (IPPA) until next year; and then the gas plant will be turned over to it following the lapse of the asset’s Build-Operate-Transfer (BOT) contract with the government.
The propounded coal plant in the newly cornered Meralco PSA serves as an expansion of its existing Masinloc plant which has a capacity of 630 megawatts.
https://mb.com.ph/2021/02/22/doe-expects-lower-meralco-rates/
The lower-than-reserve price offers in the competitive selection process (CSP) of the 1,800 megawatts power supply agreements (PSAs) for power utility giant Manila Electric Company (Meralco) will result in cheaper electricity rates for consumers, according to the Department of Energy.
Energy Secretary Alfonso G. Cusi cited the bid offers as very encouraging. “It will definitely bring down rates which would be to the benefit of our consumers,” Cusi said.
He qualified though that the CSP is a work in progress, which aims to help us achieve electricity tariff levels that are affordable and competitive enough to attract both foreign and local investors to do business in the Philippines.
Bid offers by subsidiary-firms of San Miguel Corporation in the CSP auction of Meralco had been below the reserve price set by its third party bids and awards committee (TPBAC) at P5.2559 per kilowatt hour.
Excellent Energy Resources Inc. of SMC Global Power Holdings Corporation submitted a winning bid of P4.1462 per kWh for 1,200-megawatt of gas-fired power capacity; while its Masinloc Power Partners Co. Ltd. tendered a price offer of P4.2605 per kWh for 600MW of coal-fired power capacity.
The price bid in the gas capacity is cheaper by P1.1097 per kWh if reckoned vis-Ã -vis the reserve price and as calculated on levelized cost of energy (LCOE) basis; while the winning offer in the coal capacity is lower by P0.9954 per kWh.
On the part of Meralco, Lawrence S. Fernandez, vice president of the utility firm and CSP-TPBAC Secretariat, noted that the lower price bids they cornered had been a continuation of the CSP outcomes that they had in 2019 – wherein consumers then were warranted to enjoy savings of as much as P13.86 annually in their electric bills.
“As evidenced in the past, a successful PSA and the resulting PSA signings will result in additional savings, and ultimately, least cost to consumers,” he stressed.
Fernandez emphasized that as of last year, “Meralco’s customers experienced net rate reduction of P1.3870 per kWh, equivalent to bill reduction of more than P277 for a 200-kilowatt hour household.”
The power firm executive further asserted “with this continued downward trend, largely due to these new power supply contracts, Meralcao’s rate today are at their lowest levels in three years.”
For the new capacity additions under the PSAs, SMC previously indicated that it will be expanding its gas-fired power capacity by 1,200 megawatts, proximate to the site of the 1,200MW Ilijan gas facility in Batangas – in which the company serves as independent power producer administrator (IPPA) until next year; and then the gas plant will be turned over to it following the lapse of the asset’s Build-Operate-Transfer (BOT) contract with the government.
The propounded coal plant in the newly cornered Meralco PSA serves as an expansion of its existing Masinloc plant which has a capacity of 630 megawatts.
ERC revises financial capability benchmark for genco
(The Philippine Star) - February 22, 2021 - 12:00am
https://www.philstar.com/business/2021/02/22/2079404/erc-revises-financial-capability-benchmark-genco
MANILA, Philippines — The Energy Regulatory Commission (ERC) has revised the minimum financial capability standards for generation companies (gencos) after more than a decade to ensure efficiency and financial performance in the power sector.
In a new resolution, the ERC has set the financial capability benchmark to 1.25x minimum annual Debt Service Capability Ratio (DSCR) throughout the period covered by a genco’s certificate of compliance (COC), which has a five-year duration.
This is lower than the 1.5x DSCR set way back in 2005.
The DSCR refers to the measure of the genco’s ability to fulfill its debt obligations computed as the ratio of earnings before interest, depreciation, and amortization (EBITDA) to debt service.
State-run genco, the National Power Corp. (Napocor) and Power Sector Assets and Liabilities Management Corp. (PSALM), new owners of Napocor generation assets for missionary electrification, and own-use generation facilities are exempted from compliance with the financial capability standards set.
The ERC said there is a need to amend and update the Financial Guidelines promulgated in 2005, “considering the significant changes in the economic conditions in the Philippines vis-Ã -vis the ERC’s mandate under the EPIRA to ensure quality and reliable delivery of power services to the public.”
Based on the study conducted by the power regulator, only 32 percent of the total number of generation companies with issued COCs are compliant with the required 1.5x DSCR.
“After a thorough review of all information gathered by the ERC, the ERC finds merit on the proposed amendments to the financial guidelines particularly on the financial standard previously set by the ERC in 2005 at a level of 1.5x DSCR, with the end view of promoting overall financial stability of the generation sector, safeguard against the risk of financial non-performance, and encourage efficiency to ensure the quality and reliability of supply which will ultimately redound to the protection of public interest,” it said.
Under the new guidelines, gencos are required to submit a certified true copy of a complete set of their audited financial statement and their DSCR calulation 150 days from the end of their calendar or fiscal year.
https://www.philstar.com/business/2021/02/22/2079404/erc-revises-financial-capability-benchmark-genco
MANILA, Philippines — The Energy Regulatory Commission (ERC) has revised the minimum financial capability standards for generation companies (gencos) after more than a decade to ensure efficiency and financial performance in the power sector.
In a new resolution, the ERC has set the financial capability benchmark to 1.25x minimum annual Debt Service Capability Ratio (DSCR) throughout the period covered by a genco’s certificate of compliance (COC), which has a five-year duration.
This is lower than the 1.5x DSCR set way back in 2005.
The DSCR refers to the measure of the genco’s ability to fulfill its debt obligations computed as the ratio of earnings before interest, depreciation, and amortization (EBITDA) to debt service.
State-run genco, the National Power Corp. (Napocor) and Power Sector Assets and Liabilities Management Corp. (PSALM), new owners of Napocor generation assets for missionary electrification, and own-use generation facilities are exempted from compliance with the financial capability standards set.
The ERC said there is a need to amend and update the Financial Guidelines promulgated in 2005, “considering the significant changes in the economic conditions in the Philippines vis-Ã -vis the ERC’s mandate under the EPIRA to ensure quality and reliable delivery of power services to the public.”
Based on the study conducted by the power regulator, only 32 percent of the total number of generation companies with issued COCs are compliant with the required 1.5x DSCR.
“After a thorough review of all information gathered by the ERC, the ERC finds merit on the proposed amendments to the financial guidelines particularly on the financial standard previously set by the ERC in 2005 at a level of 1.5x DSCR, with the end view of promoting overall financial stability of the generation sector, safeguard against the risk of financial non-performance, and encourage efficiency to ensure the quality and reliability of supply which will ultimately redound to the protection of public interest,” it said.
Under the new guidelines, gencos are required to submit a certified true copy of a complete set of their audited financial statement and their DSCR calulation 150 days from the end of their calendar or fiscal year.
Meralco set to award deal to two SMC power firms
posted February 22, 2021 at 09:40 pm by Alena Mae S. Flores
https://manilastandard.net/business/power-technology/347699/meralco-set-to-award-deal-to-two-smc-power-firms.html
Manila Electric Co. is set to award a 1,800-megawatt supply contract to two companies controlled by San Miguel Corp. this week following the successful competitive selection process, a top executive said Monday.
“The post-qualification process has seven days, at most, to be completed. Thus, the latest date for releasing a notice of award is on Friday, assuming compliance with all post qualification requirements,” Meralco third party bids and awards committee secretariat and Meralco vice president and head of utility economics department Lawrence Fernandez said.
The Meralco TPBAC announced Friday that Excellent Energy Resources Inc. and Masinloc Power Partners Co. Ltd controlled by SMC submitted the “two best bids” for Meralco’s 20-year 1,800 MW supply contract.
ERI offered a levelized cost of electricity of P4.1462 per kilowatt-hour while Masinloc Power Partners Co. Ltd. offered P4.2605 per kWh.
Both are significantly below the LCOE reserve price of P5.2559 per kWh.
Energy Secretary Alfonso Cusi lauded the successful conduct of the Meralco CSP as it would help bring down power rates.
“The result is very encouraging. It will definitely bring down rates, which would be to the benefit of our consumers. CSP is a work in progress, which aims to help us achieve electricity tariff levels that are affordable and competitive enough to attract both foreign and local investors to do business in the Philippines,” Cusi said.
The opening of the qualified bid prices was observed by representatives of the Department of Energy.
SMC president Ramon Ang said the company offered the best bid as it wanted “to serve our country to the best of our ability.”
EERI offered to supply Meralco 1,200 MW from a natural gas-fired power plant, while MPPCL would source power from a 600-MW coal-fired power plant.
https://manilastandard.net/business/power-technology/347699/meralco-set-to-award-deal-to-two-smc-power-firms.html
Manila Electric Co. is set to award a 1,800-megawatt supply contract to two companies controlled by San Miguel Corp. this week following the successful competitive selection process, a top executive said Monday.
“The post-qualification process has seven days, at most, to be completed. Thus, the latest date for releasing a notice of award is on Friday, assuming compliance with all post qualification requirements,” Meralco third party bids and awards committee secretariat and Meralco vice president and head of utility economics department Lawrence Fernandez said.
The Meralco TPBAC announced Friday that Excellent Energy Resources Inc. and Masinloc Power Partners Co. Ltd controlled by SMC submitted the “two best bids” for Meralco’s 20-year 1,800 MW supply contract.
ERI offered a levelized cost of electricity of P4.1462 per kilowatt-hour while Masinloc Power Partners Co. Ltd. offered P4.2605 per kWh.
Both are significantly below the LCOE reserve price of P5.2559 per kWh.
Energy Secretary Alfonso Cusi lauded the successful conduct of the Meralco CSP as it would help bring down power rates.
“The result is very encouraging. It will definitely bring down rates, which would be to the benefit of our consumers. CSP is a work in progress, which aims to help us achieve electricity tariff levels that are affordable and competitive enough to attract both foreign and local investors to do business in the Philippines,” Cusi said.
The opening of the qualified bid prices was observed by representatives of the Department of Energy.
SMC president Ramon Ang said the company offered the best bid as it wanted “to serve our country to the best of our ability.”
EERI offered to supply Meralco 1,200 MW from a natural gas-fired power plant, while MPPCL would source power from a 600-MW coal-fired power plant.
Solar eyes 2,000 MW Batangas power plant
posted February 22, 2021 at 09:20 pm by Alena Mae S. Flores
https://manilastandard.net/business/power-technology/347688/solar-eyes-2-000-mw-batangas-power-plant.html
Solar Philippines Biga Corp., a unit of Solar Philippines of businessman Leandro Leviste, is proposing to build a 2,000-megawatt solar power plant with a 6,000 MW hours battery energy storage system (BESS) and a 600-MW diesel backup in Nasugbu, Batangas to supply clean and renewable power.
“The project is expected to generate local employment during the construction and operations phase of the plant and aims to contribute to the stability of the country’s energy supply, reduce dependence on imported fossil fuels, and mitigate the impacts of climate change,” Solar Philippines Biga said in a filing with the Department of Environment and Natural Resources.
Solar Philippines Biga secured a Solar Service Energy Contract (SESC No. 2017-05-384) from the Department of Energy, giving the company exclusive right to explore, develop and utilize the solar energy resources.
Solar Philippines has purchased and secured land in the Nasugbu, Batangas generally composed of rolling terrain of idle lands.
https://manilastandard.net/business/power-technology/347688/solar-eyes-2-000-mw-batangas-power-plant.html
Solar Philippines Biga Corp., a unit of Solar Philippines of businessman Leandro Leviste, is proposing to build a 2,000-megawatt solar power plant with a 6,000 MW hours battery energy storage system (BESS) and a 600-MW diesel backup in Nasugbu, Batangas to supply clean and renewable power.
“The project is expected to generate local employment during the construction and operations phase of the plant and aims to contribute to the stability of the country’s energy supply, reduce dependence on imported fossil fuels, and mitigate the impacts of climate change,” Solar Philippines Biga said in a filing with the Department of Environment and Natural Resources.
Solar Philippines Biga secured a Solar Service Energy Contract (SESC No. 2017-05-384) from the Department of Energy, giving the company exclusive right to explore, develop and utilize the solar energy resources.
Solar Philippines has purchased and secured land in the Nasugbu, Batangas generally composed of rolling terrain of idle lands.
Energy Trilemma and high mandatory RE
February 22, 2021 | 6:50 pm By Bienvenido S. Oplas, Jr.
https://www.bworldonline.com/energy-trilemma-and-high-mandatory-re/
As usual, there are many interesting stories weekly in the Philippines energy sector but these three recent reports in BusinessWorld are of particular importance.
1. “Renewable energy program targets 55.8% share of power mix by 2040” (Feb. 15).
2. “Senate asks DoE for details of clean energy plan” (Feb. 17).
3. “SMC units submit lowest bids for 1,800-MW Meralco supply deal” (Feb. 20).
Story No. 1 is the renewable energy (RE) lobby, especially solar and wind, aiming for a near-doubling of their capacity from 29% of total installed capacity (7,400 MW out of total 25,531 MW) in 2019. This means they want coal power to be further eased out and ultimately decimated.
Note that in 2019, Philippines RE’s 29% of installed capacity produced only 13.5% of total electricity generation, 14.3 terawatt-hours (TWH) out of total 105.8 TWH. An energy weakling whose intermittency intends to produce more power instability if not blackouts for the consumers.
Story No. 2 is related to this. In particular, Senator Sherwin Gatchalian, Chairman of the Senate Committee on Energy, is pushing for a faster energy transition from stable, cheaper energy via coal power, to intermittent and expensive energy via wind-solar.
If we look at our richer neighbors in Asia, especially Singapore, Thailand, Malaysia, China, South Korea, Taiwan, and Japan, they are not as gung-ho as the Philippines in having more RE in their power grids. Their RE share to total electricity generation as of 2019 were only 2% to 12%. And it is precisely these low-RE economies (except Japan) that were growing very fast for the past three decades.
The Europeans, especially Spain, the UK, Germany, and Denmark whose RE share to total power generation is 28% to 77% in 2019, are the countries which are growing very slow and have among the most expensive electricity prices in the world (see Table 1).
Story No. 3 is about a successful competitive selection process (CSP) by Meralco where the two winning power plants (a gas plant and coal plant, both owned by San Miguel Corp.) would generate electricity at only P4.15/kwh and P4.26/kwh. This is less than half the feed-in tariff (FIT) or guaranteed price for 20 years of P11/kwh for solar and P10/kwh for wind.
A confused “pro-consumer” group, People for Power Coalition (P4P), wants to stop this cheap energy for Meralco customers and went to the Supreme Court and filed a TRO on the result of the 1,800 MW CSP. Maybe they want those three instant CSP losers — two solar firms and a newbie coal company from China with zero track record — to win and supply expensive electricity to the consumers? Lousy.
Related to these stories is the annual report, World Energy Trilemma Index by the World Energy Council (WEC), a UN-accredited global energy body. The index is composed of three factors:
Energy security: effective energy supply from domestic and external sources, reliability of infrastructure and ability of energy providers to meet current and future demand.
Energy equity: accessibility and affordability of energy supply across the population.
Environmental stability: achievement of energy efficiencies and development of energy supply from renewable and other low-carbon sources.
The Philippines ranked 76th out of 108 countries and jurisdictions covered in the 2020 report. WEC ranked us low on Energy Equity, #89, low affordability of energy, i.e., expensive energy (see Table 2).
There is an endless and strong lobby to ease out stable, reliable, and cheap energy from coal plants because it is a fossil fuel, and replace it with more RE, especially intermittent and expensive solar-wind, partnered with huge batteries and gas power which is also fossil fuel.
It seems that more RE + gas policy is mainly a gas lobby in disguise. The lobbyists know that people will object to a high 55% RE goal by 2040, meaning high power instability and unreliability, so they sneak in the gas component.
We need a market-based and consumers-focused energy balance. Balance of energy availability/stability, affordability, and sustainability. A high RE goal via government mandates and RPS will prove to be anti-consumers in the long-term.
https://www.bworldonline.com/energy-trilemma-and-high-mandatory-re/
As usual, there are many interesting stories weekly in the Philippines energy sector but these three recent reports in BusinessWorld are of particular importance.
1. “Renewable energy program targets 55.8% share of power mix by 2040” (Feb. 15).
2. “Senate asks DoE for details of clean energy plan” (Feb. 17).
3. “SMC units submit lowest bids for 1,800-MW Meralco supply deal” (Feb. 20).
Story No. 1 is the renewable energy (RE) lobby, especially solar and wind, aiming for a near-doubling of their capacity from 29% of total installed capacity (7,400 MW out of total 25,531 MW) in 2019. This means they want coal power to be further eased out and ultimately decimated.
Note that in 2019, Philippines RE’s 29% of installed capacity produced only 13.5% of total electricity generation, 14.3 terawatt-hours (TWH) out of total 105.8 TWH. An energy weakling whose intermittency intends to produce more power instability if not blackouts for the consumers.
Story No. 2 is related to this. In particular, Senator Sherwin Gatchalian, Chairman of the Senate Committee on Energy, is pushing for a faster energy transition from stable, cheaper energy via coal power, to intermittent and expensive energy via wind-solar.
If we look at our richer neighbors in Asia, especially Singapore, Thailand, Malaysia, China, South Korea, Taiwan, and Japan, they are not as gung-ho as the Philippines in having more RE in their power grids. Their RE share to total electricity generation as of 2019 were only 2% to 12%. And it is precisely these low-RE economies (except Japan) that were growing very fast for the past three decades.
The Europeans, especially Spain, the UK, Germany, and Denmark whose RE share to total power generation is 28% to 77% in 2019, are the countries which are growing very slow and have among the most expensive electricity prices in the world (see Table 1).
Story No. 3 is about a successful competitive selection process (CSP) by Meralco where the two winning power plants (a gas plant and coal plant, both owned by San Miguel Corp.) would generate electricity at only P4.15/kwh and P4.26/kwh. This is less than half the feed-in tariff (FIT) or guaranteed price for 20 years of P11/kwh for solar and P10/kwh for wind.
A confused “pro-consumer” group, People for Power Coalition (P4P), wants to stop this cheap energy for Meralco customers and went to the Supreme Court and filed a TRO on the result of the 1,800 MW CSP. Maybe they want those three instant CSP losers — two solar firms and a newbie coal company from China with zero track record — to win and supply expensive electricity to the consumers? Lousy.
Related to these stories is the annual report, World Energy Trilemma Index by the World Energy Council (WEC), a UN-accredited global energy body. The index is composed of three factors:
Energy security: effective energy supply from domestic and external sources, reliability of infrastructure and ability of energy providers to meet current and future demand.
Energy equity: accessibility and affordability of energy supply across the population.
Environmental stability: achievement of energy efficiencies and development of energy supply from renewable and other low-carbon sources.
The Philippines ranked 76th out of 108 countries and jurisdictions covered in the 2020 report. WEC ranked us low on Energy Equity, #89, low affordability of energy, i.e., expensive energy (see Table 2).
There is an endless and strong lobby to ease out stable, reliable, and cheap energy from coal plants because it is a fossil fuel, and replace it with more RE, especially intermittent and expensive solar-wind, partnered with huge batteries and gas power which is also fossil fuel.
It seems that more RE + gas policy is mainly a gas lobby in disguise. The lobbyists know that people will object to a high 55% RE goal by 2040, meaning high power instability and unreliability, so they sneak in the gas component.
We need a market-based and consumers-focused energy balance. Balance of energy availability/stability, affordability, and sustainability. A high RE goal via government mandates and RPS will prove to be anti-consumers in the long-term.
Meralco wins citations in 56th Anvil Awards
February 23, 2021 03:30 AM By TDT
https://tribune.net.ph/index.php/2021/02/23/meralco-wins-citations-in-56th-anvil-awards/
Meralco and its corporate social responsibility arm, OMF, bagged eight silver awards at the recently concluded 56th Anvil Awards, dubbed ‘the Oscars’ of Philippine public relations, which recognizes outstanding external and internal programs, campaigns and tools that exemplify the highest standards of PR practice in the country. PHOTOGRAPH COURTESY OF MERALCO
The Manila Electric Company (Meralco) and its corporate social responsibility arm, One Meralco Foundation (OMF), bagged eight silver awards at the recently concluded 56th Anvil Awards.
The Anvil Awards, dubbed “the Oscars” of Philippine public relations, recognizes outstanding external and internal programs, campaigns and tools that exemplify the highest standards of PR practice in the country.
This year, the Gabi ng Parangal of the Anvil Awards was held via livestream due to the pandemic.
In the awarding rites, Meralco received a nomination for the “Company of the Year” award as its flagship program, Meralco Advisory, wins for the 6th time since 2013.
Meralco Advisory has been one of the company’s long-running communication programs, and has effectively provided its customers technical information presented in a simplified and creative manner which a lay person can easily understand.
This year, a new category was included to recognize the programs and tools related to Covid-19.
Meralco, for its part, received a Silver Anvil for “Keeping the Lights On in the Time of Pandemic,” a communication management program on keeping its employees safe and well informed of matters related to the pandemic.
Meralco was also recognized for “Meralco Goes Green Internal Communications,” a campaign launched in 2019 to empower its employees to do their part in living sustainably through various programs and initiatives.
The other awards received are for the following programs: Meralco Digital Press Conferences: Keeping Close with Media and Public Despite Social Distancing, Share A Leave/A Day To Give, From Farmer to Frontliners, No school left in the dark-School Electrification Program energizes the farthest schools in the country, and Household Electrification Program.
The awards that Meralco received are testament to its commitment to provide purpose-driven and impactful initiatives that promote sustainability and social good amid a crisis.
https://tribune.net.ph/index.php/2021/02/23/meralco-wins-citations-in-56th-anvil-awards/
Meralco and its corporate social responsibility arm, OMF, bagged eight silver awards at the recently concluded 56th Anvil Awards, dubbed ‘the Oscars’ of Philippine public relations, which recognizes outstanding external and internal programs, campaigns and tools that exemplify the highest standards of PR practice in the country. PHOTOGRAPH COURTESY OF MERALCO
The Manila Electric Company (Meralco) and its corporate social responsibility arm, One Meralco Foundation (OMF), bagged eight silver awards at the recently concluded 56th Anvil Awards.
The Anvil Awards, dubbed “the Oscars” of Philippine public relations, recognizes outstanding external and internal programs, campaigns and tools that exemplify the highest standards of PR practice in the country.
This year, the Gabi ng Parangal of the Anvil Awards was held via livestream due to the pandemic.
In the awarding rites, Meralco received a nomination for the “Company of the Year” award as its flagship program, Meralco Advisory, wins for the 6th time since 2013.
Meralco Advisory has been one of the company’s long-running communication programs, and has effectively provided its customers technical information presented in a simplified and creative manner which a lay person can easily understand.
This year, a new category was included to recognize the programs and tools related to Covid-19.
Meralco, for its part, received a Silver Anvil for “Keeping the Lights On in the Time of Pandemic,” a communication management program on keeping its employees safe and well informed of matters related to the pandemic.
Meralco was also recognized for “Meralco Goes Green Internal Communications,” a campaign launched in 2019 to empower its employees to do their part in living sustainably through various programs and initiatives.
The other awards received are for the following programs: Meralco Digital Press Conferences: Keeping Close with Media and Public Despite Social Distancing, Share A Leave/A Day To Give, From Farmer to Frontliners, No school left in the dark-School Electrification Program energizes the farthest schools in the country, and Household Electrification Program.
The awards that Meralco received are testament to its commitment to provide purpose-driven and impactful initiatives that promote sustainability and social good amid a crisis.
Gas prices to go up by P1.20, diesel by P1.10
posted February 21, 2021 at 12:20 am by Manila Standard
https://manilastandard.net/index.php/news/national/347533/gas-prices-to-go-up-by-p1-20-diesel-by-p1-10.html
Pump prices of petroleum products are set to go up again in the coming week, Unioil Petroleum Philippines said Saturday.
In its fuel price forecast for the trading week February 23 to March 1, Unioil said the price per liter of diesel may increase by P1.00 to P1.10. Gasoline prices, meanwhile, may hike by P1.10 to P1.20 per liter.
Oil companies announce price adjustments every Monday to be effective on the next day.
This week, fuel firms hiked prices effective Tuesday, Feb. 16. They hiked gasoline prices at an average of P0.75 per liter and diesel by P1.25 per liter.
Data from the Department of Energy showed gasoline prices range from P38.85 and P50.70 per liter while diesel prices range from P31.30 to P38.80 per liter.
Year-to-date adjustments stand at a net increase of P4.00 per liter for gasoline and P3.90 per liter for diesel.
https://manilastandard.net/index.php/news/national/347533/gas-prices-to-go-up-by-p1-20-diesel-by-p1-10.html
Pump prices of petroleum products are set to go up again in the coming week, Unioil Petroleum Philippines said Saturday.
In its fuel price forecast for the trading week February 23 to March 1, Unioil said the price per liter of diesel may increase by P1.00 to P1.10. Gasoline prices, meanwhile, may hike by P1.10 to P1.20 per liter.
Oil companies announce price adjustments every Monday to be effective on the next day.
This week, fuel firms hiked prices effective Tuesday, Feb. 16. They hiked gasoline prices at an average of P0.75 per liter and diesel by P1.25 per liter.
Data from the Department of Energy showed gasoline prices range from P38.85 and P50.70 per liter while diesel prices range from P31.30 to P38.80 per liter.
Year-to-date adjustments stand at a net increase of P4.00 per liter for gasoline and P3.90 per liter for diesel.
DOE requires contingency supply for VisMin
Published February 21, 2021, 6:00 AM by Myrna M. Velasco
https://mb.com.ph/2021/02/21/doe-requires-contingency-supply-for-vismin/
The Department of Energy (DOE) has directed power firms to prepare ‘contingency measures’ to guarantee uninterrupted power supply in Visayas and Mindanao, especially during the summer months and on the anticipated rollout of the Covid-19 vaccines.
The energy department has already convened key stakeholders such as the National Grid Corporation of the Philippines (NGCP), the generation companies (GenCos), Energy Regulatory Commission, National Power Corporation, National Transmission Corporation and the Independent Electricity Market Operator of the Philippines (IEMOP), which is the operator of the Wholesale Electricity Spot Market (WESM), for a strategic planning as the country braces for the peak demand months of summer.
As laid down by the Electric Power Industry Management Bureau (EPIMB) of the DOE, coordination has to be assured, so the industry could systematically address possible issues that may affect the power situation in the two regions.
Energy Undersecretary Emmanuel P. Juaneza said, “We need to stretch all our resources without compromising the quality of our work to achieve a stable power situation throughout the year.”
He stressed that the most critical period being monitored would be the summer months because demand could drastically increase, and the coinciding Covid-19 vaccination program that may further compound the situation.
“We have to do our best in ensuring that the rollout of the Covid-19 vaccines nationwide will be unhampered,” he said.
Energy Secretary Alfonso G. Cusi has already mandated all distribution utilities to make certain that they have ample contracted capacity to underpin both the Covid-19 inoculation process, as well as the anticipated spike in electricity consumption as warmer weather sets in.
In addition, the expected approval of the proposed wider re-opening of establishments and more sectors of the economy is also expected to trigger further escalation in power demand this year.
In the presentation of system operator NGCP, it assessed that “there are ample power supply and reserve based on the DOE forecast,” and as hinged on the submitted maintenance schedules of power plants.
Energy Assistant Secretary Redentor E. Delola impressed upon industry stakeholders that they have paramount role “in protecting and preserving the vaccines” because their efficacy will primarily hinge on proper handling and storage, which means stable energy supply in the process.
“It is very important for us to prepare for the expected increase in demand in the coming months,” he said, reiterating that “summer is coming and more importantly, the government will be rolling out the nationwide vaccination program.”
https://mb.com.ph/2021/02/21/doe-requires-contingency-supply-for-vismin/
The Department of Energy (DOE) has directed power firms to prepare ‘contingency measures’ to guarantee uninterrupted power supply in Visayas and Mindanao, especially during the summer months and on the anticipated rollout of the Covid-19 vaccines.
The energy department has already convened key stakeholders such as the National Grid Corporation of the Philippines (NGCP), the generation companies (GenCos), Energy Regulatory Commission, National Power Corporation, National Transmission Corporation and the Independent Electricity Market Operator of the Philippines (IEMOP), which is the operator of the Wholesale Electricity Spot Market (WESM), for a strategic planning as the country braces for the peak demand months of summer.
As laid down by the Electric Power Industry Management Bureau (EPIMB) of the DOE, coordination has to be assured, so the industry could systematically address possible issues that may affect the power situation in the two regions.
Energy Undersecretary Emmanuel P. Juaneza said, “We need to stretch all our resources without compromising the quality of our work to achieve a stable power situation throughout the year.”
He stressed that the most critical period being monitored would be the summer months because demand could drastically increase, and the coinciding Covid-19 vaccination program that may further compound the situation.
“We have to do our best in ensuring that the rollout of the Covid-19 vaccines nationwide will be unhampered,” he said.
Energy Secretary Alfonso G. Cusi has already mandated all distribution utilities to make certain that they have ample contracted capacity to underpin both the Covid-19 inoculation process, as well as the anticipated spike in electricity consumption as warmer weather sets in.
In addition, the expected approval of the proposed wider re-opening of establishments and more sectors of the economy is also expected to trigger further escalation in power demand this year.
In the presentation of system operator NGCP, it assessed that “there are ample power supply and reserve based on the DOE forecast,” and as hinged on the submitted maintenance schedules of power plants.
Energy Assistant Secretary Redentor E. Delola impressed upon industry stakeholders that they have paramount role “in protecting and preserving the vaccines” because their efficacy will primarily hinge on proper handling and storage, which means stable energy supply in the process.
“It is very important for us to prepare for the expected increase in demand in the coming months,” he said, reiterating that “summer is coming and more importantly, the government will be rolling out the nationwide vaccination program.”
DOE requires use of solar, RE technologies in buildings
By Kris Crismundo February 20, 2021, 2:13 pm
https://www.pna.gov.ph/articles/1131318
MANILA – New and existing buildings are now required to use solar photovoltaic (PV) and other renewable energy (RE) technologies with the Department of Energy’s (DOE) issuance of a policy on the adoption of the guidelines on the energy-conserving design of buildings.
Department Circular (DC) 2020-12-0026 issued on Friday aims to promote the energy-conserving design of buildings and their services and boost the demand for energy-efficient materials and technologies.
Aside from solar PV, other RE technologies that can be used in buildings are wind power supply systems, solar weather heaters, solar air conditioners, and solar-powered lighting systems to reduce demand for commercial power.
“Covered buildings shall source, initially, a minimum of 1 percent of their projected annual energy requirements,” the DC read.
Covered buildings include those with electrical loads of at least 112.5 kilovolt-ampere (kVa) or with a total gross floor area of at least 10,000 square meters.
Energy Utilization Management Bureau Director Patrick Aquino told the Philippine News Agency (PNA) that they are eyeing to impose penalties on those who would not comply with the guidelines.
The DC does not indicate any fine for non-compliant buildings.
Moreover, building owners can either partially or fully source their energy requirement from the RE power supply system.
Aside from satisfying their own energy requirements, they are also allowed to sell the excess RE to the local power utility, which is currently at a maximum of 100 kilowatts but may be raised by the Energy Regulatory Commission in the future.
Meanwhile, Aquino said these guidelines would also be integrated into the Philippine Green Building Code.
“(The) DPWH (Department of Public Works and Highways) gave us permission to go ahead with the issuance. The pertinent provisions will be referred to in the next update of Philippine Green Building Code,” he said. (PNA)
https://www.pna.gov.ph/articles/1131318
MANILA – New and existing buildings are now required to use solar photovoltaic (PV) and other renewable energy (RE) technologies with the Department of Energy’s (DOE) issuance of a policy on the adoption of the guidelines on the energy-conserving design of buildings.
Department Circular (DC) 2020-12-0026 issued on Friday aims to promote the energy-conserving design of buildings and their services and boost the demand for energy-efficient materials and technologies.
Aside from solar PV, other RE technologies that can be used in buildings are wind power supply systems, solar weather heaters, solar air conditioners, and solar-powered lighting systems to reduce demand for commercial power.
“Covered buildings shall source, initially, a minimum of 1 percent of their projected annual energy requirements,” the DC read.
Covered buildings include those with electrical loads of at least 112.5 kilovolt-ampere (kVa) or with a total gross floor area of at least 10,000 square meters.
Energy Utilization Management Bureau Director Patrick Aquino told the Philippine News Agency (PNA) that they are eyeing to impose penalties on those who would not comply with the guidelines.
The DC does not indicate any fine for non-compliant buildings.
Moreover, building owners can either partially or fully source their energy requirement from the RE power supply system.
Aside from satisfying their own energy requirements, they are also allowed to sell the excess RE to the local power utility, which is currently at a maximum of 100 kilowatts but may be raised by the Energy Regulatory Commission in the future.
Meanwhile, Aquino said these guidelines would also be integrated into the Philippine Green Building Code.
“(The) DPWH (Department of Public Works and Highways) gave us permission to go ahead with the issuance. The pertinent provisions will be referred to in the next update of Philippine Green Building Code,” he said. (PNA)
Meralco to refund over P13B in 2 years
By Mayvelin U. Caraballo, TMT February 20, 2021
https://www.manilatimes.net/2021/02/20/business/business-top/meralco-to-refund-over-p13b-in-2-years/842997/
The Energy Regulatory Commission (ERC) has granted the Manila Electric Co.’s (Meralco) petition filed late last year petition to refund P13.88 billion to its customers within two years.
In an order on Friday, the power regulator said the amount was equivalent to P0.1528 per kilowatt-hour (kWh). Meralco must return the amount within that period or until it is fully refunded, it added.
ERC Chairman and Chief Executive Officer Agnes Devanadera said her agency’s move would allow the company’s customers “to immediately enjoy the benefits of the proposed refund and provide immediate rate relief, especially during [the coronavirus] pandemic.”
The refund covers the difference between the actual weighted average tariff (AWAT) of its distribution charge of P1.4414/kWh and Meralco’s ERC-approved distribution rate of P1.3810/kWh.
The ERC order limits the provisional approval only to refunding the amount applied by Meralco.
“Except for authorizing the refund as applied, all other allegations, assumptions and computations made in the instant application are still subject to the ERC’s extensive evaluation and pertinent rules on the matter,” it said.
The commission also directed Meralco to reflect the refund as a separate line item in its bills of customers during the refund period.
“We hope that the reduction in rate could help our consumers cope with the still-ongoing pandemic,” Devanadera said.
Joe Zaldarriaga, Meralco vice president for corporate communications, said that “with the petition we filed, Meralco hopes to put the PBR (performance-based regulation) mechanism back on track, that we appreciate the provisional approval and that we will follow the order, as this will provide much needed relief to our customers.”
Two qualified bidders
The order comes as Meralco announced that two out of six firms were qualified to participate in the competitive selection process (CSP) to supply the power giant with 1,800 megawatts of electricity.
Meralco’s Third-Party Bids and Awards Committee identified them as Excellent Energy Resources Inc. (EERI), which offers a levelized cost of electricity (LCOE) of P4.1462/kWh, and Masinloc Power Partners Co. Ltd. (MPPCL), which offered P4.2605/kWh. Both are much lower than the LCOE reserve price of P5.2559/kWh.
EERI plans to supply 1,200 MW from a natural gas-fired power plant while MPPCL offers 600 MW from a coal-fired facility.
The other four were Mariveles Power Generation Corp., Atimonan One Energy Inc., GNPower Dinginin Ltd. Co. and St. Raphael Power Generation Corp. They had offered LCOE of P4.3321/kWh, P4.6338/kWh, P5.2500/kWh and P5.4426/kWh, respectively.
Energy Secretary Alfonso Cusi welcomed the outcome, calling it “very encouraging.”
“It will definitely bring down rates, which would be to the benefit of our consumers” Cusi said in a message to reporters.
“The CSP is a work in progress, which aims to help us achieve electricity tariff levels that are affordable and competitive enough to attract both foreign and local investments to do business here in the Philippines,” he added.
https://www.manilatimes.net/2021/02/20/business/business-top/meralco-to-refund-over-p13b-in-2-years/842997/
The Energy Regulatory Commission (ERC) has granted the Manila Electric Co.’s (Meralco) petition filed late last year petition to refund P13.88 billion to its customers within two years.
In an order on Friday, the power regulator said the amount was equivalent to P0.1528 per kilowatt-hour (kWh). Meralco must return the amount within that period or until it is fully refunded, it added.
ERC Chairman and Chief Executive Officer Agnes Devanadera said her agency’s move would allow the company’s customers “to immediately enjoy the benefits of the proposed refund and provide immediate rate relief, especially during [the coronavirus] pandemic.”
The refund covers the difference between the actual weighted average tariff (AWAT) of its distribution charge of P1.4414/kWh and Meralco’s ERC-approved distribution rate of P1.3810/kWh.
The ERC order limits the provisional approval only to refunding the amount applied by Meralco.
“Except for authorizing the refund as applied, all other allegations, assumptions and computations made in the instant application are still subject to the ERC’s extensive evaluation and pertinent rules on the matter,” it said.
The commission also directed Meralco to reflect the refund as a separate line item in its bills of customers during the refund period.
“We hope that the reduction in rate could help our consumers cope with the still-ongoing pandemic,” Devanadera said.
Joe Zaldarriaga, Meralco vice president for corporate communications, said that “with the petition we filed, Meralco hopes to put the PBR (performance-based regulation) mechanism back on track, that we appreciate the provisional approval and that we will follow the order, as this will provide much needed relief to our customers.”
Two qualified bidders
The order comes as Meralco announced that two out of six firms were qualified to participate in the competitive selection process (CSP) to supply the power giant with 1,800 megawatts of electricity.
Meralco’s Third-Party Bids and Awards Committee identified them as Excellent Energy Resources Inc. (EERI), which offers a levelized cost of electricity (LCOE) of P4.1462/kWh, and Masinloc Power Partners Co. Ltd. (MPPCL), which offered P4.2605/kWh. Both are much lower than the LCOE reserve price of P5.2559/kWh.
EERI plans to supply 1,200 MW from a natural gas-fired power plant while MPPCL offers 600 MW from a coal-fired facility.
The other four were Mariveles Power Generation Corp., Atimonan One Energy Inc., GNPower Dinginin Ltd. Co. and St. Raphael Power Generation Corp. They had offered LCOE of P4.3321/kWh, P4.6338/kWh, P5.2500/kWh and P5.4426/kWh, respectively.
Energy Secretary Alfonso Cusi welcomed the outcome, calling it “very encouraging.”
“It will definitely bring down rates, which would be to the benefit of our consumers” Cusi said in a message to reporters.
“The CSP is a work in progress, which aims to help us achieve electricity tariff levels that are affordable and competitive enough to attract both foreign and local investments to do business here in the Philippines,” he added.
SMC wins Meralco’s 1,800MW supply deal
Published February 19, 2021, 1:36 PM by Myrna M. Velasco
https://mb.com.ph/2021/02/19/smc-wins-meralcos-1800mw-supply-deal/
Two subsidiary firms of diversifying conglomerate San Miguel Corporation (SMC) tendered the lowest bid for the competitive selection process (CSP) for the supply of 1,800 MW power capacity to Manila Electric Company (Meralco) over a 20-year year period.
The winning SMC companies are Excellent Energy Resources Inc. (EERI) and Masinloc Power Partners Ltd. Co. EERI cornered 1,200MW of capacity for gas-fired power generation with its price offer of P4.1462 per kilowatt hour (kWh), while its other subsidiary Masinloc Power Partners Ltd. Co. won 600MW capacity for a price bid of P4.2605 per kWh.
Based on its 20-year power supply agreements, both firms will supply the distribution utility giant Meralco power starting 2024.
SMC President Ramon S. Ang indicated that they are “just lucky” to have tendered the winning offers in the auction.
In a statement to the media, the third party bids and awards committee (TPBAC) of the Meralco CSP qualified that the two price-offers of the SMC firms have been rated as the “best bids” — out of the six offers cornered in the CSP of the utility firm. The TPBAC also emphasized that “the opening of the qualified bid prices was observed by the representatives of the Department of Energy.”
The TPBAC further noted that the winning offers have been “significantly below the LCOE (levelized cost of energy) reserve price of P5.2559 per kWh.”
In particular, the price offer of Masinloc Power for 600MW capacity coal-fired generation had been ranked lower versus the bids of Mariveles Power Generation Corporation (MPGC) at P4.3321 per kWh; Atimonan One Energy Inc. (A1E) at P4.6338 per kWh; and GNPower Dinginin Ltd. Co. (GNPD) at P5.25 per kWh. TPBAC Chairman Atty. Ferdinand A. Domingo said the CSP was carried out “in full compliance with all rules and regulations issued by the DOE.” The outcome of the CSP had also been transmitted to the energy department.
Domingo added “the terms of reference (TOR) were reviewed and approved by the DOE, and all contracts that will result from the bidding process will be subjected to regulatory proceedings and evaluation by the ERC (Energy Regulatory Commission).”
MPGC is a joint venture between SMC Global Power Holdings and Meralco PowerGen, the power generation investment arm of Meralco. A1E is a corporate vehicle of Meralco PowerGen for its proposed Atimonan project, while GNPD is a joint venture between Aboitiz Power Corporation and AC Energy and Infrastructure Corporation (ACEIC) of the Ayala group.
The other bidder is St. Raphael Power Generation Corporation of the Consunji group, but it submitted a price tender of P5.4426 per kWh, which failed to meet the reserve price, according to the TPBAC.
And to ensure the integrity of the CSP process, the TPBAC had engaged the assistance of experts from Leidos, a global engineering firm, on the evaluation of the offers.
https://mb.com.ph/2021/02/19/smc-wins-meralcos-1800mw-supply-deal/
Two subsidiary firms of diversifying conglomerate San Miguel Corporation (SMC) tendered the lowest bid for the competitive selection process (CSP) for the supply of 1,800 MW power capacity to Manila Electric Company (Meralco) over a 20-year year period.
The winning SMC companies are Excellent Energy Resources Inc. (EERI) and Masinloc Power Partners Ltd. Co. EERI cornered 1,200MW of capacity for gas-fired power generation with its price offer of P4.1462 per kilowatt hour (kWh), while its other subsidiary Masinloc Power Partners Ltd. Co. won 600MW capacity for a price bid of P4.2605 per kWh.
Based on its 20-year power supply agreements, both firms will supply the distribution utility giant Meralco power starting 2024.
SMC President Ramon S. Ang indicated that they are “just lucky” to have tendered the winning offers in the auction.
In a statement to the media, the third party bids and awards committee (TPBAC) of the Meralco CSP qualified that the two price-offers of the SMC firms have been rated as the “best bids” — out of the six offers cornered in the CSP of the utility firm. The TPBAC also emphasized that “the opening of the qualified bid prices was observed by the representatives of the Department of Energy.”
The TPBAC further noted that the winning offers have been “significantly below the LCOE (levelized cost of energy) reserve price of P5.2559 per kWh.”
In particular, the price offer of Masinloc Power for 600MW capacity coal-fired generation had been ranked lower versus the bids of Mariveles Power Generation Corporation (MPGC) at P4.3321 per kWh; Atimonan One Energy Inc. (A1E) at P4.6338 per kWh; and GNPower Dinginin Ltd. Co. (GNPD) at P5.25 per kWh. TPBAC Chairman Atty. Ferdinand A. Domingo said the CSP was carried out “in full compliance with all rules and regulations issued by the DOE.” The outcome of the CSP had also been transmitted to the energy department.
Domingo added “the terms of reference (TOR) were reviewed and approved by the DOE, and all contracts that will result from the bidding process will be subjected to regulatory proceedings and evaluation by the ERC (Energy Regulatory Commission).”
MPGC is a joint venture between SMC Global Power Holdings and Meralco PowerGen, the power generation investment arm of Meralco. A1E is a corporate vehicle of Meralco PowerGen for its proposed Atimonan project, while GNPD is a joint venture between Aboitiz Power Corporation and AC Energy and Infrastructure Corporation (ACEIC) of the Ayala group.
The other bidder is St. Raphael Power Generation Corporation of the Consunji group, but it submitted a price tender of P5.4426 per kWh, which failed to meet the reserve price, according to the TPBAC.
And to ensure the integrity of the CSP process, the TPBAC had engaged the assistance of experts from Leidos, a global engineering firm, on the evaluation of the offers.
‘No disconnection’ for low energy consumers, says Ceneco
By Mae Singuay - Friday, February 19, 2021
https://www.panaynews.net/no-disconnection-for-low-energy-consumers-says-ceneco/
BACOLOD City – The Central Negros Electric Cooperative (Ceneco) is implementing a “no disconnection” policy to all its consumers with unpaid bills falling due on March 2021.
Ceneco acting general manager Danny Pondevilla said they will not implement any disconnection on account of non-payment of bills for members-consumers-owners (MCOs) with monthly consumption of 80 kilowatt-hour (kWh) or less.
This move is in line with the Feb. 5 advisory of the Department of Energy (DOE), said Pondevilla.
For Ceneco consumers, the ERC approved a lifeline consumption level of 80kwh per month.
However, Pondevilla clarified that Ceneco will continue to implement disconnection to non-lifeline consumers.
“MCOs who have the ability to pay are encouraged to settle their bills within the original due date to help manage the cash flow in the energy supply chain and ensure continuous supply of electricity,” he said.
In another development, Ceneco will hold its regular district elections on March 13 for districts IV (Bacolod East), V (Bacolod West) and VIII (Talisay City, Negros Occidental).
On March 20, scheduled were districts II (Bacolod South), III (Bacolod Central) and VII (municipalities of Murcia and Salvador Benedicto, Negros Occidental).
The election will start from 8 a.m. to 3 p.m.
Pondevilla said members whose names appear in the final master list of voters as of Dec. 31, 2020 shall be allowed to vote, and no proxy voting is allowed./PN
https://www.panaynews.net/no-disconnection-for-low-energy-consumers-says-ceneco/
BACOLOD City – The Central Negros Electric Cooperative (Ceneco) is implementing a “no disconnection” policy to all its consumers with unpaid bills falling due on March 2021.
Ceneco acting general manager Danny Pondevilla said they will not implement any disconnection on account of non-payment of bills for members-consumers-owners (MCOs) with monthly consumption of 80 kilowatt-hour (kWh) or less.
This move is in line with the Feb. 5 advisory of the Department of Energy (DOE), said Pondevilla.
For Ceneco consumers, the ERC approved a lifeline consumption level of 80kwh per month.
However, Pondevilla clarified that Ceneco will continue to implement disconnection to non-lifeline consumers.
“MCOs who have the ability to pay are encouraged to settle their bills within the original due date to help manage the cash flow in the energy supply chain and ensure continuous supply of electricity,” he said.
In another development, Ceneco will hold its regular district elections on March 13 for districts IV (Bacolod East), V (Bacolod West) and VIII (Talisay City, Negros Occidental).
On March 20, scheduled were districts II (Bacolod South), III (Bacolod Central) and VII (municipalities of Murcia and Salvador Benedicto, Negros Occidental).
The election will start from 8 a.m. to 3 p.m.
Pondevilla said members whose names appear in the final master list of voters as of Dec. 31, 2020 shall be allowed to vote, and no proxy voting is allowed./PN
26 new mining projects ready to break ground
Louise Maureen Simeon (The Philippine Star) - February 19, 2021 - 12:00am
https://www.philstar.com/business/2021/02/19/2078735/26-new-mining-projects-ready-break-ground
MANILA, Philippines — At least 26 new mining projects will start development this year even as several stumbling blocks have yet to be resolved.
Mines and Geosciences Bureau (MGB) director Wilfredo Moncano told The Star 26 new mining projects have complied with the documentary requirements, allowing them to proceed with development.
“These are MPSAs (mineral production sharing agreements) that had waited for a long time to develop and commercially operate and think now is the right time because of the high demand for aggregates, sand and gravel, limestone as cement feed, and other construction industry raw materials,” he said.
The government has been scrambling to get additional sources of revenues to keep the economy going.
It is of the belief that the mining industry has the potential to contribute to the growth of the economy through increased exports, taxes and employment.
The sector is enjoying favorable prices for most minerals, supported by a broader global economic recovery as COVID-19 vaccines become more widely available.
Moncano did not disclose the names of the 26 mining firms involved, but these include eight metallic mines and 18 non-metallic mines.
“Although most of them are in the non-metallic category, these new mining projects support the Build Build Build program of the government,” Moncano said.
“The metallic mines have a longer development period even up to three years but, yes, within the year, all these companies will start development works,” he said.
Larry Heradez, Mining Tenements Management Division chief of MGB, said the $750-million Silangan copper and gold project in Surigao del Norte of Pangilinan-led Philex Mining Corp. is one of the 26 firms expected to start rolling this year.
The government’s move to greenlight projects is also in response to the rising demand in China as consumption remains strong.
About 90 percent of the country’s nickel exports goes to China.
Demand for some metals used in renewable infrastructure and electric-vehicle batteries including copper, nickel and aluminum is also robust.
https://www.philstar.com/business/2021/02/19/2078735/26-new-mining-projects-ready-break-ground
MANILA, Philippines — At least 26 new mining projects will start development this year even as several stumbling blocks have yet to be resolved.
Mines and Geosciences Bureau (MGB) director Wilfredo Moncano told The Star 26 new mining projects have complied with the documentary requirements, allowing them to proceed with development.
“These are MPSAs (mineral production sharing agreements) that had waited for a long time to develop and commercially operate and think now is the right time because of the high demand for aggregates, sand and gravel, limestone as cement feed, and other construction industry raw materials,” he said.
The government has been scrambling to get additional sources of revenues to keep the economy going.
It is of the belief that the mining industry has the potential to contribute to the growth of the economy through increased exports, taxes and employment.
The sector is enjoying favorable prices for most minerals, supported by a broader global economic recovery as COVID-19 vaccines become more widely available.
Moncano did not disclose the names of the 26 mining firms involved, but these include eight metallic mines and 18 non-metallic mines.
“Although most of them are in the non-metallic category, these new mining projects support the Build Build Build program of the government,” Moncano said.
“The metallic mines have a longer development period even up to three years but, yes, within the year, all these companies will start development works,” he said.
Larry Heradez, Mining Tenements Management Division chief of MGB, said the $750-million Silangan copper and gold project in Surigao del Norte of Pangilinan-led Philex Mining Corp. is one of the 26 firms expected to start rolling this year.
The government’s move to greenlight projects is also in response to the rising demand in China as consumption remains strong.
About 90 percent of the country’s nickel exports goes to China.
Demand for some metals used in renewable infrastructure and electric-vehicle batteries including copper, nickel and aluminum is also robust.
Alcantara retires as Alsons chairman
Published February 18, 2021, 5:34 PM by Myrna M. Velasco
https://mb.com.ph/2021/02/18/alcantara-retires-as-alsons-chairman/
Businessman Tomas I. Alcantara has retired as chairman and president of publicly listed Alsons Consolidated Resources Inc. (ACR), one of the country’s largest conglomerates, effective March 1 this year due to health reasons.
Taking his place is his older brother, Nicasio I. Alcantara, who will be pursuing the company’s aggressive expansion projects in the power sector, primarily renewable energy as the next focus of its investments trajectory.
ACR announced that Tomas Alcantara, known to their employees and executives as “TIA”, will remain as board director in the company. No particular details were given on his current state of health, which prompted his decision to finally pass the baton to another family member in leading their corporation.
The next chairman and president of ACR is not new to topmost corporate leadership having previously served as chairman and president of Petron Corporation, the country’s biggest oil firm which still had its partnership with mammoth oil producer Saudi Aramco during his stint in 1995-2001; and then as Chairman and CEO from 2001 to 2009.
Nicasio also currently holds top post as chairman of ACR Mining Corporation; and as an independent director of Uy-led Phoenix Petroleum Philippines Inc.
Aside from changes at the uppermost layer of the company, ACR likewise confirmed the appointment of Alexander Benhur M. Simon as Vice President and Group Finance Officer; as well as the assumption of Antonio Miguel B. Alcantara to a new post as Chief Investment and Strategy Officer.
As TIA bows down from his current post, ACR Executive Vice President Tirso G. Santillan, paid tribute and recounted the many accomplishments of the firm under the departing chairman and president’s watch.
“Under Tomas Alcantara’s leadership, ACR helped end the Mindanao power supply shortage by bringing online two major power facilities that added 313 megawatts to the island’s power supply,” he narrated.
Santillan further noted “it was because of his vision and guidance that ACR is now a major power generator with four power facilities serving over eight million people in 14 cities and 11 provinces in Mindanao.”
Advancing from these accomplishments, he added, “ACR will continue to benefit from his wisdom and experience as he continues to serve in the board;” while they also extend an open arm to the new leader for his entry in leading the company.
In the portfolio of projects being pushed to completion by ACR are the P4.5 billion Siguil hydropower project in Sarangani province that will yield capacity of 14.5 megawatts; and then the 105MW San Ramon Power Inc facility in Zamboanga City which commands capital injection of P16 billion.
Next in the line-up of the firm’s power ventures will be additional hydropower plants, namely the 22MW Siayan facility in Zamboanga del Norte; and the 42MW Bago hydropower plant project in Negros Occidental.
https://mb.com.ph/2021/02/18/alcantara-retires-as-alsons-chairman/
Businessman Tomas I. Alcantara has retired as chairman and president of publicly listed Alsons Consolidated Resources Inc. (ACR), one of the country’s largest conglomerates, effective March 1 this year due to health reasons.
Taking his place is his older brother, Nicasio I. Alcantara, who will be pursuing the company’s aggressive expansion projects in the power sector, primarily renewable energy as the next focus of its investments trajectory.
ACR announced that Tomas Alcantara, known to their employees and executives as “TIA”, will remain as board director in the company. No particular details were given on his current state of health, which prompted his decision to finally pass the baton to another family member in leading their corporation.
The next chairman and president of ACR is not new to topmost corporate leadership having previously served as chairman and president of Petron Corporation, the country’s biggest oil firm which still had its partnership with mammoth oil producer Saudi Aramco during his stint in 1995-2001; and then as Chairman and CEO from 2001 to 2009.
Nicasio also currently holds top post as chairman of ACR Mining Corporation; and as an independent director of Uy-led Phoenix Petroleum Philippines Inc.
Aside from changes at the uppermost layer of the company, ACR likewise confirmed the appointment of Alexander Benhur M. Simon as Vice President and Group Finance Officer; as well as the assumption of Antonio Miguel B. Alcantara to a new post as Chief Investment and Strategy Officer.
As TIA bows down from his current post, ACR Executive Vice President Tirso G. Santillan, paid tribute and recounted the many accomplishments of the firm under the departing chairman and president’s watch.
“Under Tomas Alcantara’s leadership, ACR helped end the Mindanao power supply shortage by bringing online two major power facilities that added 313 megawatts to the island’s power supply,” he narrated.
Santillan further noted “it was because of his vision and guidance that ACR is now a major power generator with four power facilities serving over eight million people in 14 cities and 11 provinces in Mindanao.”
Advancing from these accomplishments, he added, “ACR will continue to benefit from his wisdom and experience as he continues to serve in the board;” while they also extend an open arm to the new leader for his entry in leading the company.
In the portfolio of projects being pushed to completion by ACR are the P4.5 billion Siguil hydropower project in Sarangani province that will yield capacity of 14.5 megawatts; and then the 105MW San Ramon Power Inc facility in Zamboanga City which commands capital injection of P16 billion.
Next in the line-up of the firm’s power ventures will be additional hydropower plants, namely the 22MW Siayan facility in Zamboanga del Norte; and the 42MW Bago hydropower plant project in Negros Occidental.
Gov’t gets 13 bids for geothermal, hydro projects
By: Ronnel W. Domingo - 05:10 AM February 18, 2021
https://business.inquirer.net/317940/govt-gets-13-bids-for-geothermal-hydro-projects
The Department of Energy (DOE) on Wednesday touted 13 applications received for geothermal and hydro service contracts covering 11 out of 22 areas that the DOE made available to developers of renewable energy (RE) projects.
This was part of the third Open and Competitive Selection Process (OCSP3) or bidding for such contracts. The evaluation of valid applications is expected to be completed on March 2 and the awarding of contracts—if any—is expected on April 14.
This was also the first bidding done since 100-percent foreign participation in geoethermal projects was allowed.
“The DOE has been promoting RE development to both local and foreign investors,” Energy Secretary Alfonso Cusi said in a statement. “This will accelerate our energy transition toward sustainable development.”
Out of the five so-called predetermined areas (PDAs) suitable for geothermal developments and available for contracting, three PDAs attracted five applications.
Energy Development Corp. and Philippine Geothermal Production Co. (PGPC) are vying for a contract to develop the Daklan area in Benguet province, where there is potential for a 27-megawatt (MW) project.
PGPC also applied for a contract related to a possible 30-MW project at Mt. Labo in Camarines Sur.
EDC also wants a contract for Puting Lupa in Laguna where there is potential for 17 MW, up against an application for the same from MASE Power Corp.
There were no takers for contracts covering Maricaban Island in Batangas (4 MW) and Itogon in Benguet (9 MW).
Even then, the five applications for geothermal service contracts were found complete and are up for evaluation.
As for 17 areas with potential hydro projects, two companies submitted applications covering eight PDAs. There were no applicants for contract on nine PDAs.
Total Power Inc. submitted applications and Century Peak Energy Corp. turned in five applications.
However, the DOE said all applications for hydro projects were found incomplete. The applicants may file motions for reconsideration no later than Feb. 18.
https://business.inquirer.net/317940/govt-gets-13-bids-for-geothermal-hydro-projects
The Department of Energy (DOE) on Wednesday touted 13 applications received for geothermal and hydro service contracts covering 11 out of 22 areas that the DOE made available to developers of renewable energy (RE) projects.
This was part of the third Open and Competitive Selection Process (OCSP3) or bidding for such contracts. The evaluation of valid applications is expected to be completed on March 2 and the awarding of contracts—if any—is expected on April 14.
This was also the first bidding done since 100-percent foreign participation in geoethermal projects was allowed.
“The DOE has been promoting RE development to both local and foreign investors,” Energy Secretary Alfonso Cusi said in a statement. “This will accelerate our energy transition toward sustainable development.”
Out of the five so-called predetermined areas (PDAs) suitable for geothermal developments and available for contracting, three PDAs attracted five applications.
Energy Development Corp. and Philippine Geothermal Production Co. (PGPC) are vying for a contract to develop the Daklan area in Benguet province, where there is potential for a 27-megawatt (MW) project.
PGPC also applied for a contract related to a possible 30-MW project at Mt. Labo in Camarines Sur.
EDC also wants a contract for Puting Lupa in Laguna where there is potential for 17 MW, up against an application for the same from MASE Power Corp.
There were no takers for contracts covering Maricaban Island in Batangas (4 MW) and Itogon in Benguet (9 MW).
Even then, the five applications for geothermal service contracts were found complete and are up for evaluation.
As for 17 areas with potential hydro projects, two companies submitted applications covering eight PDAs. There were no applicants for contract on nine PDAs.
Total Power Inc. submitted applications and Century Peak Energy Corp. turned in five applications.
However, the DOE said all applications for hydro projects were found incomplete. The applicants may file motions for reconsideration no later than Feb. 18.
Kingstone Energy has no registered project, says DOE
posted February 17, 2021 at 07:00 pm by Alena Mae S. Flores
https://manilastandard.net/index.php/business/power-technology/347275/kingstone-energy-has-no-registered-project-says-doe.html
Kingstone Energy, one of the disqualified bidders for the 20-year power supply of Manila Electric Co. has no registered project, raising questions on its qualification, the Department of Energy said Wednesday.
“They don’t have any registered project with us. Neither committed nor indicative. If they will build a new coal plant, that’s not included in the committed or indicative capacities that we have. Then it will be covered already by the moratorium,” Energy Assistant Secretary Redentor Delola said.
Kingstone Energy and two other disqualified bidders can still file an appeal with the Meralco third party bids and awards committee to participate in the CSP with the financial bid opening set on Feb. 19. Meralco is bidding out the supply of 1,800 megawatts,
“If they [Kingstone] want a new coal plant, then they cannot participate. It is possible they have a joint venture with an existing proponent that is in the list, but we cannot establish that yet,” Delola said.
Several groups raised concern over the planned coal project of Kingstone Energy in the wake of the coal ban announced by the agency last year.
The DOE issued a moratorium on endorsement of the application and development of new coal-fired power projects.
Under the DOE memorandum, existing and operational coal-fired power generation facilities as well as any coal-fired power project in the parameters listed by the DOE would not be affected by the advisory.
These include committed coal-fired power projects and existing power plant complexes which already have firm expansions plans and existing land site provision.
Indicative power projects with substantial accomplishments, with signed and notarized acquisition of land or lease agreement for the project; and with approved permits or resolutions from LGUs (city/municipality, province) and the Regional Development Council where the power plants will be located are also exempted from the moratorium.
The Alyansa ng mga Grupong Haligi ng Agham at Teknolohiya para sa Mamamayan said the DOE’s moratorium on new coal plants should put an end to the participation of Kingstone in the Meralco CSP.
Angelo Palmones, Agham president, said the Kingstone project was covered by the DOE moratorium against new or greenfield coal power plants and “they should be removed immediately and permanently from the CSP, as they did not meet the bare minimum rules and regulations outright.”
Some groups also noted the lack of track record of Kingstone Energy. Infrawatch PH, an infrastructure-oriented think tank urged the DOE to implement stricter rules in the competitive selection process of power distribution utilities.
Terry Ridon, Infrawatch PH convenor and former House energy committee member, said that while the CSP was proven as a viable and transparent process to ensure the least cost to electricity consumers, “the DOE should implement stricter rules to ensure that bidders have proven local track record and pose no national security risks.”
https://manilastandard.net/index.php/business/power-technology/347275/kingstone-energy-has-no-registered-project-says-doe.html
Kingstone Energy, one of the disqualified bidders for the 20-year power supply of Manila Electric Co. has no registered project, raising questions on its qualification, the Department of Energy said Wednesday.
“They don’t have any registered project with us. Neither committed nor indicative. If they will build a new coal plant, that’s not included in the committed or indicative capacities that we have. Then it will be covered already by the moratorium,” Energy Assistant Secretary Redentor Delola said.
Kingstone Energy and two other disqualified bidders can still file an appeal with the Meralco third party bids and awards committee to participate in the CSP with the financial bid opening set on Feb. 19. Meralco is bidding out the supply of 1,800 megawatts,
“If they [Kingstone] want a new coal plant, then they cannot participate. It is possible they have a joint venture with an existing proponent that is in the list, but we cannot establish that yet,” Delola said.
Several groups raised concern over the planned coal project of Kingstone Energy in the wake of the coal ban announced by the agency last year.
The DOE issued a moratorium on endorsement of the application and development of new coal-fired power projects.
Under the DOE memorandum, existing and operational coal-fired power generation facilities as well as any coal-fired power project in the parameters listed by the DOE would not be affected by the advisory.
These include committed coal-fired power projects and existing power plant complexes which already have firm expansions plans and existing land site provision.
Indicative power projects with substantial accomplishments, with signed and notarized acquisition of land or lease agreement for the project; and with approved permits or resolutions from LGUs (city/municipality, province) and the Regional Development Council where the power plants will be located are also exempted from the moratorium.
The Alyansa ng mga Grupong Haligi ng Agham at Teknolohiya para sa Mamamayan said the DOE’s moratorium on new coal plants should put an end to the participation of Kingstone in the Meralco CSP.
Angelo Palmones, Agham president, said the Kingstone project was covered by the DOE moratorium against new or greenfield coal power plants and “they should be removed immediately and permanently from the CSP, as they did not meet the bare minimum rules and regulations outright.”
Some groups also noted the lack of track record of Kingstone Energy. Infrawatch PH, an infrastructure-oriented think tank urged the DOE to implement stricter rules in the competitive selection process of power distribution utilities.
Terry Ridon, Infrawatch PH convenor and former House energy committee member, said that while the CSP was proven as a viable and transparent process to ensure the least cost to electricity consumers, “the DOE should implement stricter rules to ensure that bidders have proven local track record and pose no national security risks.”
Travel ban delaying GNPower Dinginin opening
Power Philippines News on February 17, 2021 at 12:18 pm
https://powerphilippines.com/travel-ban-delaying-gnpower-dinginin-opening/
Continued travel restrictions due to the COVID-19 pandemic leading to construction setbacks have delayed the targeted commercial operations of the GNPower Dinginin supercritical coal-fired power plant.
In a report by BusinessWorld, Aboitiz Power Corporation President and CEO Emmanuel Rubio said that the earliest possible dates for the start of operations of generator Units 1 and 2 would be on June 26 and November 26, respectively, if there are no further delays.
AboitizPower previously said that it had aimed to complete the construction of the 1,336-megawatt (MW) facility in Mariveles, Bataan by the second quarter. Each unit has a generating capacity of 668MW.
Rubio further said that the construction is in its final stages, but still faces challenges due to the pandemic, particularly the movement of personnel and materials.
Should there be more delays, Rubio said that Units 1 and 2 would begin their respective operations on August 26, 2021 and January 26, 2022.
GNPower Dinginin began as a join venture between AboitizPower and Ayala-led AC Energy, which announced late last year that it is dropping coal from its power generation portfolio and is thus divesting from its 40% stake
https://powerphilippines.com/travel-ban-delaying-gnpower-dinginin-opening/
Continued travel restrictions due to the COVID-19 pandemic leading to construction setbacks have delayed the targeted commercial operations of the GNPower Dinginin supercritical coal-fired power plant.
In a report by BusinessWorld, Aboitiz Power Corporation President and CEO Emmanuel Rubio said that the earliest possible dates for the start of operations of generator Units 1 and 2 would be on June 26 and November 26, respectively, if there are no further delays.
AboitizPower previously said that it had aimed to complete the construction of the 1,336-megawatt (MW) facility in Mariveles, Bataan by the second quarter. Each unit has a generating capacity of 668MW.
Rubio further said that the construction is in its final stages, but still faces challenges due to the pandemic, particularly the movement of personnel and materials.
Should there be more delays, Rubio said that Units 1 and 2 would begin their respective operations on August 26, 2021 and January 26, 2022.
GNPower Dinginin began as a join venture between AboitizPower and Ayala-led AC Energy, which announced late last year that it is dropping coal from its power generation portfolio and is thus divesting from its 40% stake
EDC, PGPC submit bids for geothermal blocks
Published February 17, 2021, 2:19 PM by Myrna M. Velasco
https://mb.com.ph/2021/02/17/edc-pgpc-submit-bids-for-geothermal-blocks/
Big ticket geothermal firms Energy Development Corporation (EDC) of the Lopez Group and Sy-owned Philippine Geothermal Production Company (PGPC) as well as Mase Power Corporation have submitted bids for the geothermal blocks tendered by the Department of Energy (DOE) via the 3rd open and competitive selection process (OCSP) for conventional renewable projects.
For pre-determined area (PDA) 1 which is the Daklan block, offers were lodged by both EDC and PGPC; PDA 3 or the Putting Lupa block cornered bids from EDC and Mase Power Corporation; and PDA 5 for Mt Labo prospect had PGPC as lone bidder.
“All geothermal applications were found to have submitted complete documentary requirements,” the DOE has announced, although post-evaluation processes have yet to be carried out on the bids before any decision on award of contracts.
While EDC and PGPC are already well-entrenched players in the industry, Mase Power is a new investor and it is reportedly owned by a son-in-law of former chairman of the Philippine Amusement and Gaming Corporation (PAGCOR).
The energy department has specified though that it did not receive tenders for two geothermal blocks: these are for Area 2 in Acupan-Itogon in Benguet; and Maricaban in Batangas.
For hydro, the DOE specified that all applications “were found to be incomplete in documentary requirements.” And for that, the department instructed the applicants that they “were given until February 18 to file a motion for reconsideration.”
Among the firms that submitted bids for the hydro blocks have been Total Power Inc. and Century Peak Energy Corporation.
The energy department primarily indicated that it cornered one application for each PDA area for hydropower resources – for a total of at least eight (8) blocks, namely: Amlan C, Amlan A, Hilabangan Upper Cascade, Hilabangan Lower Cascade, Maninila Lower Cascade, Manininila Upper Cascade, Tibiao; and then Sibalom Middle Cascade.
The areas that did not receive bids had been: Dalanas, Aklan River Lower East, Middle East and Upper West tributaries; Vera Falls, Palali Falls, Coyaoyao Upper Cascade, Dapnan and Balintingon.
As prescribed under the OCSP-3 timelines, the evaluation of all bids (legal, technical and financial offers) is due for completion until March 2 this year; while the awarding of RE contracts is targeted by April 14, 2021.
Despite some areas not attracting tenders, Energy Secretary Alfonso G. Cusi brandished that OCSP-3 still yielded successful outcome.
“The DOE has been promoting RE developments to both local and foreign investors. This will accelerate our energy transition towards sustainable development,” the energy chief stressed.
According to the DOE, the bid process enticed at least 125 participants who viewed the opening of the RE applications through various social media and web conferencing platforms.
Energy Assistant Secretary Robert B. Uy said “the time and effort that were put in by our participating bidders or applicants in the preparation and submission of their respective bids are appreciated.”
The energy officials asserted that the development of the renewable energy sources, which the Philippines has been richly endowed, will be part of the country’s overall quest for energy independence and sustainability.
https://mb.com.ph/2021/02/17/edc-pgpc-submit-bids-for-geothermal-blocks/
Big ticket geothermal firms Energy Development Corporation (EDC) of the Lopez Group and Sy-owned Philippine Geothermal Production Company (PGPC) as well as Mase Power Corporation have submitted bids for the geothermal blocks tendered by the Department of Energy (DOE) via the 3rd open and competitive selection process (OCSP) for conventional renewable projects.
For pre-determined area (PDA) 1 which is the Daklan block, offers were lodged by both EDC and PGPC; PDA 3 or the Putting Lupa block cornered bids from EDC and Mase Power Corporation; and PDA 5 for Mt Labo prospect had PGPC as lone bidder.
“All geothermal applications were found to have submitted complete documentary requirements,” the DOE has announced, although post-evaluation processes have yet to be carried out on the bids before any decision on award of contracts.
While EDC and PGPC are already well-entrenched players in the industry, Mase Power is a new investor and it is reportedly owned by a son-in-law of former chairman of the Philippine Amusement and Gaming Corporation (PAGCOR).
The energy department has specified though that it did not receive tenders for two geothermal blocks: these are for Area 2 in Acupan-Itogon in Benguet; and Maricaban in Batangas.
For hydro, the DOE specified that all applications “were found to be incomplete in documentary requirements.” And for that, the department instructed the applicants that they “were given until February 18 to file a motion for reconsideration.”
Among the firms that submitted bids for the hydro blocks have been Total Power Inc. and Century Peak Energy Corporation.
The energy department primarily indicated that it cornered one application for each PDA area for hydropower resources – for a total of at least eight (8) blocks, namely: Amlan C, Amlan A, Hilabangan Upper Cascade, Hilabangan Lower Cascade, Maninila Lower Cascade, Manininila Upper Cascade, Tibiao; and then Sibalom Middle Cascade.
The areas that did not receive bids had been: Dalanas, Aklan River Lower East, Middle East and Upper West tributaries; Vera Falls, Palali Falls, Coyaoyao Upper Cascade, Dapnan and Balintingon.
As prescribed under the OCSP-3 timelines, the evaluation of all bids (legal, technical and financial offers) is due for completion until March 2 this year; while the awarding of RE contracts is targeted by April 14, 2021.
Despite some areas not attracting tenders, Energy Secretary Alfonso G. Cusi brandished that OCSP-3 still yielded successful outcome.
“The DOE has been promoting RE developments to both local and foreign investors. This will accelerate our energy transition towards sustainable development,” the energy chief stressed.
According to the DOE, the bid process enticed at least 125 participants who viewed the opening of the RE applications through various social media and web conferencing platforms.
Energy Assistant Secretary Robert B. Uy said “the time and effort that were put in by our participating bidders or applicants in the preparation and submission of their respective bids are appreciated.”
The energy officials asserted that the development of the renewable energy sources, which the Philippines has been richly endowed, will be part of the country’s overall quest for energy independence and sustainability.
Clear energy transition plan sought
February 17, 2021
https://malaya.com.ph/index.php/news_business/clear-energy-transition-plan-sought/
Senate committee on energy chairman Sherwin Gatchalian is calling for an inquiry into the government’s energy transition plan following the Department of Energy’s recent order to ban the development of new coal power plants.
Gatchalian in a statement said the transition plan should address the country’s emission commitments under the Paris Agreement while ensuring stable and affordable power supply.
Gatchalian said the duration of the moratorium must be clearly laid out as well as the process on how other technologies can fill the gap left by coal to ensure that power cost will not increase and supply will remain ample.
The senator clarified he supports the thrust for cleaner energy sources but noted the need for a larger energy transition plan that declares the use of alternative fuels within a specific timeframe.
“Investing in renewable energy is the win-win solution for sustained economic growth in the country. We can have cleaner air at a much cheaper price and RE investments can bring in lots of job opportunities…there’s a need to look into the country’s energy transition plan, or lack thereof, in aid of legislation, with the end view of developing and ensuring an equitable, secure and sustainable energy transition,” Gatchalian said.
He said the Philippines recorded a 5.4 percent jump in total greenhouse gas (GHG) emissions from 123.3 million tons of carbon dioxide equivalent (MtCO2e) in 2018 to 130 million MtCO2e in 2019.
As of 2019, the power generator sector had the largest share in total GHG emissions at 53.2 percent followed by the transport sector at 27.3 percent. – Jed Macapagal
https://malaya.com.ph/index.php/news_business/clear-energy-transition-plan-sought/
Senate committee on energy chairman Sherwin Gatchalian is calling for an inquiry into the government’s energy transition plan following the Department of Energy’s recent order to ban the development of new coal power plants.
Gatchalian in a statement said the transition plan should address the country’s emission commitments under the Paris Agreement while ensuring stable and affordable power supply.
Gatchalian said the duration of the moratorium must be clearly laid out as well as the process on how other technologies can fill the gap left by coal to ensure that power cost will not increase and supply will remain ample.
The senator clarified he supports the thrust for cleaner energy sources but noted the need for a larger energy transition plan that declares the use of alternative fuels within a specific timeframe.
“Investing in renewable energy is the win-win solution for sustained economic growth in the country. We can have cleaner air at a much cheaper price and RE investments can bring in lots of job opportunities…there’s a need to look into the country’s energy transition plan, or lack thereof, in aid of legislation, with the end view of developing and ensuring an equitable, secure and sustainable energy transition,” Gatchalian said.
He said the Philippines recorded a 5.4 percent jump in total greenhouse gas (GHG) emissions from 123.3 million tons of carbon dioxide equivalent (MtCO2e) in 2018 to 130 million MtCO2e in 2019.
As of 2019, the power generator sector had the largest share in total GHG emissions at 53.2 percent followed by the transport sector at 27.3 percent. – Jed Macapagal
ERC sets Q2 timeline for GEAR pricing
February 16, 2021 | 8:03 pm
https://www.bworldonline.com/erc-sets-q2-timeline-for-gear-pricing/
THE Energy Regulatory Commission (ERC) said hopes to set the Green Energy Auction Reserve (GEAR) Price by the second quarter, along with a template for power supply agreements to be concluded by winning bidders and utilities.
“The ERC is currently working on the GEAR Price as well as the power supply agreement template for the winning [bidder] and the DU (distribution utility),” ERC Commissioner-In-Charge Floresinda G. Baldo-Digal said Tuesday during an event organized by the European Chamber of Commerce of the Philippines, “REPH100 launch in support of the GEOP (Green Energy Option Program).”
“These will be subject to public consultation within the quarter and I believe this is targeted to be finalized in the second quarter to make it to the target auction (date) in June 2021,” she added.
The GEAR price is expressed in pesos per kilowatt-hour. The green energy auction allows eligible RE developers to offer their output to the rest of the power industry.
Last month, Energy Assistant Secretary Redentor E. Delola said that the department hopes to launch the planned first green energy auction by June, adding that it was still in the process of determining the volume to be auctioned.
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On Tuesday, Ms. Digal said that the ERC is also looking into setting net-metering rules for off-grid consumers, with deliberations set for the third quarter.
“Existing net metering rules are only for those connected to the grid. We think that more end users will benefit if we promulgate the net metering rules for off-grid. This is to be presented to the commission for deliberation as targeted (in the) third quarter of 2021,” Ms. Digal said.
The net metering program is a non-fiscal incentive authorized by the Renewable Energy (RE) Act of 2008, for consumers owning RE facilities that generate power of 100 kilowatts or less. Under the program, these consumers can generate electricity for their own consumption, and sell excess power to the distribution grid. — Angelica Y. Yang
https://www.bworldonline.com/erc-sets-q2-timeline-for-gear-pricing/
THE Energy Regulatory Commission (ERC) said hopes to set the Green Energy Auction Reserve (GEAR) Price by the second quarter, along with a template for power supply agreements to be concluded by winning bidders and utilities.
“The ERC is currently working on the GEAR Price as well as the power supply agreement template for the winning [bidder] and the DU (distribution utility),” ERC Commissioner-In-Charge Floresinda G. Baldo-Digal said Tuesday during an event organized by the European Chamber of Commerce of the Philippines, “REPH100 launch in support of the GEOP (Green Energy Option Program).”
“These will be subject to public consultation within the quarter and I believe this is targeted to be finalized in the second quarter to make it to the target auction (date) in June 2021,” she added.
The GEAR price is expressed in pesos per kilowatt-hour. The green energy auction allows eligible RE developers to offer their output to the rest of the power industry.
Last month, Energy Assistant Secretary Redentor E. Delola said that the department hopes to launch the planned first green energy auction by June, adding that it was still in the process of determining the volume to be auctioned.
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On Tuesday, Ms. Digal said that the ERC is also looking into setting net-metering rules for off-grid consumers, with deliberations set for the third quarter.
“Existing net metering rules are only for those connected to the grid. We think that more end users will benefit if we promulgate the net metering rules for off-grid. This is to be presented to the commission for deliberation as targeted (in the) third quarter of 2021,” Ms. Digal said.
The net metering program is a non-fiscal incentive authorized by the Renewable Energy (RE) Act of 2008, for consumers owning RE facilities that generate power of 100 kilowatts or less. Under the program, these consumers can generate electricity for their own consumption, and sell excess power to the distribution grid. — Angelica Y. Yang
AC Energy, partner secure financing for Australia solar farm
Danessa Rivera (The Philippine Star) - February 16, 2021 - 12:00am
https://www.philstar.com/business/2021/02/16/2077950/ac-energy-partner-secure-financing-australia-solar-farm
MANILA, Philippines — AC Energy and Infrastructure Inc. (ACEIC) and its partner have secured financing from three banks for their mega solar project in Australia, with plans to add battery storage facility.
UPCAC Renewables Australia, the joint venture of ACEIC and UPC Renewables, has reached financial close for the first 400-megawatt (MW) stage of the 750-MW New England Solar Farm at Uralla in New South Wales (NSW).
The firm said debt financing for the initial stage is being provided by Westpac, Commonwealth Bank of Australia and Bank of China.
The 400-MW phase 1 of New England Solar Farm has a project cost of AUD619 million (roughly $481 million), with ACEIC committing $320 million (around AUD411 million) of equity in the project.
“It’s exciting to achieve financial close on a merchant basis for such a large project, which is the first of many such projects we have in Australia. UPCAC Renewables Australia views this project fitting into the NSW Government RoadMap and look forward to being engaged in this process to help lower electricity prices in NSW,” UPCAC Renewables CEO Anton Rohner said in a statement.
With early works including substation and road design started in late 2020, the company expects grid connection and initial energy production to occur by July 2022 while the remainder of the project is projected to be placed in service by end-2023.
The solar farm is being built by Green Light Contractors, the local subsidiary of Elecnor, a leading Spanish engineering, procurement and construction (EPC) contractor with extensive experience building solar plants and transmission assets around the world.
The New England Solar Farm will contribute significantly to AC Energy’s goal of reaching 5,000 MW of renewables capacity by 2025, toward becoming the largest listed renewables platform in Southeast Asia.
“The New England Solar Farm is a major milestone for AC Energy as our first project in Australia,” AC Energy International COO Patrice Clausse said.
“This is the product of a fruitful partnership with UPC and our local Australian team. We look forward to helping Australia achieve and exceed its long-term decarbonization goals by continuing to develop and construct more renewable energy projects in the country,” he said.
Meanwhile, UPCAC Renewables is also planning to install up to a 400 megawatt-hour (MWh) lithium-ion battery storage facility, with the first 50 MWh, which is supported by the NSW Emerging Energy Program, expected to become operational in mid-2022.
The company said the battery system would assist with electricity grid stability and provide firm capability to deliver energy at peak periods, lowering prices for consumers.
Once fully constructed, the solar farm will produce enough energy to power approximately 250,000 typical NSW households each year and will supply energy to the market to help fill the gap left by the expected closure of the Liddell Power Station.
The New England Solar Farm is expected to participate in the NSW Electricity Infrastructure RoadMap bidding process to secure a long-term energy services agreement which will assist the NSW government to deliver lower energy prices to consumers.
The project is also UPC Renewables’ first project in Australia and is also the first within its large portfolio to reach financial close, UPC Renewables executive chairman Brian Caffyn said.
“We would like to thank our partner AC Energy for their financial and technical support in making this project a reality. This is a very large energy project even for Australia and we are proud to be associated with the New England Solar Farm and the local community and helping to transition NSW towards a clean, lower cost energy future,“ he said.
https://www.philstar.com/business/2021/02/16/2077950/ac-energy-partner-secure-financing-australia-solar-farm
MANILA, Philippines — AC Energy and Infrastructure Inc. (ACEIC) and its partner have secured financing from three banks for their mega solar project in Australia, with plans to add battery storage facility.
UPCAC Renewables Australia, the joint venture of ACEIC and UPC Renewables, has reached financial close for the first 400-megawatt (MW) stage of the 750-MW New England Solar Farm at Uralla in New South Wales (NSW).
The firm said debt financing for the initial stage is being provided by Westpac, Commonwealth Bank of Australia and Bank of China.
The 400-MW phase 1 of New England Solar Farm has a project cost of AUD619 million (roughly $481 million), with ACEIC committing $320 million (around AUD411 million) of equity in the project.
“It’s exciting to achieve financial close on a merchant basis for such a large project, which is the first of many such projects we have in Australia. UPCAC Renewables Australia views this project fitting into the NSW Government RoadMap and look forward to being engaged in this process to help lower electricity prices in NSW,” UPCAC Renewables CEO Anton Rohner said in a statement.
With early works including substation and road design started in late 2020, the company expects grid connection and initial energy production to occur by July 2022 while the remainder of the project is projected to be placed in service by end-2023.
The solar farm is being built by Green Light Contractors, the local subsidiary of Elecnor, a leading Spanish engineering, procurement and construction (EPC) contractor with extensive experience building solar plants and transmission assets around the world.
The New England Solar Farm will contribute significantly to AC Energy’s goal of reaching 5,000 MW of renewables capacity by 2025, toward becoming the largest listed renewables platform in Southeast Asia.
“The New England Solar Farm is a major milestone for AC Energy as our first project in Australia,” AC Energy International COO Patrice Clausse said.
“This is the product of a fruitful partnership with UPC and our local Australian team. We look forward to helping Australia achieve and exceed its long-term decarbonization goals by continuing to develop and construct more renewable energy projects in the country,” he said.
Meanwhile, UPCAC Renewables is also planning to install up to a 400 megawatt-hour (MWh) lithium-ion battery storage facility, with the first 50 MWh, which is supported by the NSW Emerging Energy Program, expected to become operational in mid-2022.
The company said the battery system would assist with electricity grid stability and provide firm capability to deliver energy at peak periods, lowering prices for consumers.
Once fully constructed, the solar farm will produce enough energy to power approximately 250,000 typical NSW households each year and will supply energy to the market to help fill the gap left by the expected closure of the Liddell Power Station.
The New England Solar Farm is expected to participate in the NSW Electricity Infrastructure RoadMap bidding process to secure a long-term energy services agreement which will assist the NSW government to deliver lower energy prices to consumers.
The project is also UPC Renewables’ first project in Australia and is also the first within its large portfolio to reach financial close, UPC Renewables executive chairman Brian Caffyn said.
“We would like to thank our partner AC Energy for their financial and technical support in making this project a reality. This is a very large energy project even for Australia and we are proud to be associated with the New England Solar Farm and the local community and helping to transition NSW towards a clean, lower cost energy future,“ he said.
414-MW San Gabriel power plant restarts operations after rehab job
posted February 16, 2021 at 06:45 pm by Alena Mae S. Flores
https://www.manilastandard.net/business/power-technology/347188/414-mw-san-gabriel-power-plant-restarts-operations-after-rehab-job.html
First Gen Corp. said Tuesday the 414-megawatt San Gabriel Combined Cycle Power Plant in Batangas started recommissioning following the completion of repairs to the generator.
The power plant was damaged after a trip that occurred in September 2020.
“The plant was successfully restarted and placed online on Feb. 15, 2021, as part of planned ongoing recommissioning activities,” First Gen said in a disclosure to the stock exchange.
“The recommissioning activities are scheduled to last for up to three days and are necessary to confirm that the San Gabriel plant is performing as designed, before it resumes normal commercial operations,” the company said.
It said preliminary tests conducted by Siemens Power Operations Inc. on unit 70 of the power plant showed an electrical fault in the generator.
The power plant tripped on Sept. 5, 2020 because of the activation of generator protection.
It started commercial operations on Nov. 7, 2016 and utilizes Siemens’ SCC6-8000H combined-cycle gas turbine, which is designed to offer operational flexibility.
It is one of the four natural gas-fired power plants at the First Gen Clean Energy Complex in Batangas which also hosts the 1,000-MW Santa Rita, the 500-MW San Lorenzo and the 97-MW Avion power plants.
The Santa Rita, San Lorenzo, and San Gabriel power plants deliver baseload power, while the Avion power plants capitalizes on the growing demand for peaking power in the Luzon grid.
First Gen has 3,492 MW of installed capacity in its portfolio of clean and indigenous fuels such as natural gas, geothermal energy from steam, hydro-electric, wind and solar power which accounts for 21 percent of the country’s gross generation.
https://www.manilastandard.net/business/power-technology/347188/414-mw-san-gabriel-power-plant-restarts-operations-after-rehab-job.html
First Gen Corp. said Tuesday the 414-megawatt San Gabriel Combined Cycle Power Plant in Batangas started recommissioning following the completion of repairs to the generator.
The power plant was damaged after a trip that occurred in September 2020.
“The plant was successfully restarted and placed online on Feb. 15, 2021, as part of planned ongoing recommissioning activities,” First Gen said in a disclosure to the stock exchange.
“The recommissioning activities are scheduled to last for up to three days and are necessary to confirm that the San Gabriel plant is performing as designed, before it resumes normal commercial operations,” the company said.
It said preliminary tests conducted by Siemens Power Operations Inc. on unit 70 of the power plant showed an electrical fault in the generator.
The power plant tripped on Sept. 5, 2020 because of the activation of generator protection.
It started commercial operations on Nov. 7, 2016 and utilizes Siemens’ SCC6-8000H combined-cycle gas turbine, which is designed to offer operational flexibility.
It is one of the four natural gas-fired power plants at the First Gen Clean Energy Complex in Batangas which also hosts the 1,000-MW Santa Rita, the 500-MW San Lorenzo and the 97-MW Avion power plants.
The Santa Rita, San Lorenzo, and San Gabriel power plants deliver baseload power, while the Avion power plants capitalizes on the growing demand for peaking power in the Luzon grid.
First Gen has 3,492 MW of installed capacity in its portfolio of clean and indigenous fuels such as natural gas, geothermal energy from steam, hydro-electric, wind and solar power which accounts for 21 percent of the country’s gross generation.
3 gas-fired power plants seen launching between 2022, 2025
February 15, 2021 | 8:02 pm
https://www.bworldonline.com/3-gas-fired-power-plants-seen-launching-between-2022-2025/
ENERGY WORLD Corp. (EWC), Excellent Energy Resources, Inc. (EERI), and Batangas Clean Energy, Inc. have projected the launch commercial operations of their natural gas-fired power plants between 2022 and 2025, according to the Department of Energy (DoE) documents.
According to the DoE’s list of private-sector initiated committed power projects in Luzon compiled as of the end of December, the plants launching in the next few years include the 650-megawatt (MW) EWC combined cycle gas turbine (CCGT) in Quezon; EERI’s 1,750-MW Ilijan liquified natural gas (LNG) power plant in Batangas; and the Batangas Clean Energy’s 1,100-MW natural gas-fired plant.
Committed power projects are those that have obtained financing from investors or banks.
The 650 MW – EWC CCGT plant is scheduled to begin commercial operations by December 2022.
The first phase of the Ilijan LNG power plant is scheduled to go onstream by March 2023, and the second phase is due to start its commercial run by June 2024.
Meanwhile, Batangas Clean Energy’s natural gas-fired plant project is targeted for operations by December 2025. The DoE added that the Batangas Clean Energy’s project is still in the feasibility study stage with construction to begin by the third quarter this year.
Greater dependence on gas-fired plants coincides with the Philippines’ transition to imported gas in the wake of the impending depletion in 2027 of the Malampaya gas field, the country’s only indigenous source.
A month earlier, the DoE identified Vires Energy Corp. and Atlantic Gulf and Pacific Co. (AG&P), among others, as potential investors in a floating facility for imported gas.
Vires Energy is owned by listed company A Brown Co., Inc., while AG&P, which operates globally, is a Filipino firm with manufacturing plants in Batangas.
The two firms were mentioned by DoE Assistant Secretary Leonido J. Pulido III last month at a Senate hearing on the proposed midstream natural gas industry act, which covers various operations including the aggregation, supply, importation, receipt, unloading, loading, processing, storage, regasification, transmission and transportation of natural gas in original or liquefied form. — Angelica Y. Yang
https://www.bworldonline.com/3-gas-fired-power-plants-seen-launching-between-2022-2025/
ENERGY WORLD Corp. (EWC), Excellent Energy Resources, Inc. (EERI), and Batangas Clean Energy, Inc. have projected the launch commercial operations of their natural gas-fired power plants between 2022 and 2025, according to the Department of Energy (DoE) documents.
According to the DoE’s list of private-sector initiated committed power projects in Luzon compiled as of the end of December, the plants launching in the next few years include the 650-megawatt (MW) EWC combined cycle gas turbine (CCGT) in Quezon; EERI’s 1,750-MW Ilijan liquified natural gas (LNG) power plant in Batangas; and the Batangas Clean Energy’s 1,100-MW natural gas-fired plant.
Committed power projects are those that have obtained financing from investors or banks.
The 650 MW – EWC CCGT plant is scheduled to begin commercial operations by December 2022.
The first phase of the Ilijan LNG power plant is scheduled to go onstream by March 2023, and the second phase is due to start its commercial run by June 2024.
Meanwhile, Batangas Clean Energy’s natural gas-fired plant project is targeted for operations by December 2025. The DoE added that the Batangas Clean Energy’s project is still in the feasibility study stage with construction to begin by the third quarter this year.
Greater dependence on gas-fired plants coincides with the Philippines’ transition to imported gas in the wake of the impending depletion in 2027 of the Malampaya gas field, the country’s only indigenous source.
A month earlier, the DoE identified Vires Energy Corp. and Atlantic Gulf and Pacific Co. (AG&P), among others, as potential investors in a floating facility for imported gas.
Vires Energy is owned by listed company A Brown Co., Inc., while AG&P, which operates globally, is a Filipino firm with manufacturing plants in Batangas.
The two firms were mentioned by DoE Assistant Secretary Leonido J. Pulido III last month at a Senate hearing on the proposed midstream natural gas industry act, which covers various operations including the aggregation, supply, importation, receipt, unloading, loading, processing, storage, regasification, transmission and transportation of natural gas in original or liquefied form. — Angelica Y. Yang
Monday, February 15, 2021
Group asks RE firms to refund FiT-All
By Business Mirror February 15, 2021
https://businessmirror.com.ph/2021/02/15/group-asks-re-firms-to-refund-fit-all/
Renewable energy (RE) developers should follow the example of Manila Electric Co. (Meralco), when it proactively sought for the approval of P13.89 billion in over-recoveries, Laban Konsyumer Inc. (LKI) said on Sunday.
Vic Dimagiba, the president of the consumer group, said his group hopes that RE developers and the Energy Regulatory Commission (ERC) could refund consumers and customers the feed-in-tariff allowance (FiT-All) they charged, similar to the refund scheme of Meralco.
“I also call out the renewable energy developers in our hope that they do the same, similar initiatives, and that the adjusted FiT-All that was awarded can be voided as a resolution. ERC and the RE developers should return and refund to customers and poor consumers the money that they took through high prices for FiT-All and renewable energy developers,” he said.
To recall, Meralco has asked the ERC to approve its petition to refund P13.89 billion of over-recoveries based on its actual weighted average tariff charges (AWAT) from July 2015 to November 2020.
“[This] is the first petition of its kind filed voluntarily to offer a refund in recent years, and we hope that other players in the power and energy sector can soon follow suit. Similarly, in our pursuit for consumer welfare and the greater good for the average everyday Filipino customers. Our intervention compliments the group’s opposition to universal charges, FiT ALL and the FiT,” Dimagiba said.
FiT-All is billed to all on-grid electricity consumers, which appears as a separate line item in power distributors’ bills. The amount is meant to cover payments to RE developers who are assured of a fixed rate per kWh for electricity generated by their projects over a period of 20 years.
“We sincerely hope the government, regulator and other DUs and ECs [electric cooperatives] can follow this example for the benefit of consumers nationwide. This is a good first step for the new year 2021,” Dimagiba said.
https://businessmirror.com.ph/2021/02/15/group-asks-re-firms-to-refund-fit-all/
Renewable energy (RE) developers should follow the example of Manila Electric Co. (Meralco), when it proactively sought for the approval of P13.89 billion in over-recoveries, Laban Konsyumer Inc. (LKI) said on Sunday.
Vic Dimagiba, the president of the consumer group, said his group hopes that RE developers and the Energy Regulatory Commission (ERC) could refund consumers and customers the feed-in-tariff allowance (FiT-All) they charged, similar to the refund scheme of Meralco.
“I also call out the renewable energy developers in our hope that they do the same, similar initiatives, and that the adjusted FiT-All that was awarded can be voided as a resolution. ERC and the RE developers should return and refund to customers and poor consumers the money that they took through high prices for FiT-All and renewable energy developers,” he said.
To recall, Meralco has asked the ERC to approve its petition to refund P13.89 billion of over-recoveries based on its actual weighted average tariff charges (AWAT) from July 2015 to November 2020.
“[This] is the first petition of its kind filed voluntarily to offer a refund in recent years, and we hope that other players in the power and energy sector can soon follow suit. Similarly, in our pursuit for consumer welfare and the greater good for the average everyday Filipino customers. Our intervention compliments the group’s opposition to universal charges, FiT ALL and the FiT,” Dimagiba said.
FiT-All is billed to all on-grid electricity consumers, which appears as a separate line item in power distributors’ bills. The amount is meant to cover payments to RE developers who are assured of a fixed rate per kWh for electricity generated by their projects over a period of 20 years.
“We sincerely hope the government, regulator and other DUs and ECs [electric cooperatives] can follow this example for the benefit of consumers nationwide. This is a good first step for the new year 2021,” Dimagiba said.
Razon-led Iloilo power firm seeks P2-B capex
Published February 15, 2021, 7:00 AM by Myrna M. Velasco
https://mb.com.ph/2021/02/15/razon-led-iloilo-power-firm-seeks-p2-b-capex/
Razon-led MORE Electric and Power Corporation (MORE Power) has applied for P1.982 billion worth of capital expenditures (capex) with the Energy Regulatory Commission (ERC) for the reinforcement and expansion of its power distribution network in Iloilo City.
In its filing with the regulatory body, the utility firm stipulated that P1.004 billion worth will be funneled to major capex projects; P829.116 million will be earmarked to residual capex projects; and P148.863 million will be spent for non-network projects.
MORE Power asked ERC that it be “immediately issued a provisional authority or interim relief authorizing and/or confirming the implementation by applicant MORE of the capex projects.”
The regulatory body has already satisfied the publication requirement of MORE Power’s capex application; and it has also been directing relevant parties to join the virtual public hearings that it will schedule soon.
For the company’s major capex projects, the big-ticket items include the development of the 50/62.5 megavolt ampere (MVA) Megaworld gas insulated substation (GIS) and its associated sub-transmission and distribution lines which will require an investment of P449.375 million; the development of a 50/62.5 MVA General Luna substation for P256.357 million; and a mobile substation that will command cash call of P150.642 million.
The other major capital projects will be the development of the Banuyao 69-kilovolt switching station and Baldoza 69kV line reconfiguration and metering; as well as the procurement of transportation equipment.
The residual capital projects will include: replacement of various sub-transmission lines; replacement of breakers, disconnect switch, protective relays, control panels and various accessories; reconductoring of various distribution lines; new connections; replacement of defective meters; purchase of new distribution transformer; monitoring and testing of metering instrument transformer accuracy; monitoring of system loss at secondary distribution system; installation of feeder recloser; replacement of padlocks, disconnect switch and meter box enclosure; and purchase of engineering test equipment.
The non-network projects will cover building improvement; office furniture and fixtures; engineering analysis tool, leasehold improvement, communication equipment and other intangible assets, among others.
MORE Power said the implementation of its capex projects is necessary and justified and will directly benefit the consumers of Iloilo City in terms of improved system reliability, stability and safety and improved customer services.
The firm added “the projects are reasonably priced, having been procured and implemented following the accepted practice of competitive bidding.”
https://mb.com.ph/2021/02/15/razon-led-iloilo-power-firm-seeks-p2-b-capex/
Razon-led MORE Electric and Power Corporation (MORE Power) has applied for P1.982 billion worth of capital expenditures (capex) with the Energy Regulatory Commission (ERC) for the reinforcement and expansion of its power distribution network in Iloilo City.
In its filing with the regulatory body, the utility firm stipulated that P1.004 billion worth will be funneled to major capex projects; P829.116 million will be earmarked to residual capex projects; and P148.863 million will be spent for non-network projects.
MORE Power asked ERC that it be “immediately issued a provisional authority or interim relief authorizing and/or confirming the implementation by applicant MORE of the capex projects.”
The regulatory body has already satisfied the publication requirement of MORE Power’s capex application; and it has also been directing relevant parties to join the virtual public hearings that it will schedule soon.
For the company’s major capex projects, the big-ticket items include the development of the 50/62.5 megavolt ampere (MVA) Megaworld gas insulated substation (GIS) and its associated sub-transmission and distribution lines which will require an investment of P449.375 million; the development of a 50/62.5 MVA General Luna substation for P256.357 million; and a mobile substation that will command cash call of P150.642 million.
The other major capital projects will be the development of the Banuyao 69-kilovolt switching station and Baldoza 69kV line reconfiguration and metering; as well as the procurement of transportation equipment.
The residual capital projects will include: replacement of various sub-transmission lines; replacement of breakers, disconnect switch, protective relays, control panels and various accessories; reconductoring of various distribution lines; new connections; replacement of defective meters; purchase of new distribution transformer; monitoring and testing of metering instrument transformer accuracy; monitoring of system loss at secondary distribution system; installation of feeder recloser; replacement of padlocks, disconnect switch and meter box enclosure; and purchase of engineering test equipment.
The non-network projects will cover building improvement; office furniture and fixtures; engineering analysis tool, leasehold improvement, communication equipment and other intangible assets, among others.
MORE Power said the implementation of its capex projects is necessary and justified and will directly benefit the consumers of Iloilo City in terms of improved system reliability, stability and safety and improved customer services.
The firm added “the projects are reasonably priced, having been procured and implemented following the accepted practice of competitive bidding.”
Biodiesel industry intensifies push on B5 hike this year
Published February 15, 2021, 6:00 AM by Myrna M. Velasco
https://mb.com.ph/2021/02/15/biodiesel-industry-intensifies-push-on-b5-hike-this-year/
Producers of biodiesel commodity in the country are intensifying calls on the government to finally implement hike in the blend to 5 percent by volume or B5 from currently at 2 percent or B2.
In a statement to the media, The Philippine Biodiesel Association (TPBA)
indicated that “there is more than enough supply to support the shift to B5.”
That is effectively echoing the plan of the Department of Energy (DOE) to raise the biodiesel blend to 5.0-percent this 2021.
According to DOE Assistant Secretary Leonido Pulido III, included in the DOE’s Biofuels Roadmap 2018-2040 targets is the increase of the biodiesel blend to 5 percent in 2020. It was not met due to the pandemic’s impact on logistics and transportation difficulties.
Dean Lao, spokesperson of TPBA, emphasized “there is overcapacity among coco methyl ester (CME) producers in serving the current B2 blend,” with him noting that the additional capacities “were built in anticipation of the shift to B5 as guided by the Energy Department’s Philippine Energy Plan.”
He fleshed out that the combined capacity of the CME producers at present stand
at 850 million liters, which would be “more than enough to treat 17 billion
liters of automotive diesel per year.”
The country’s main leaning on biodiesel utilization is CME, because this is a resource that the Philippines is richly endowed with. With CME, it has been explained that this biofuel, which is made from coconut oil, “is converted to a diesel-substitute while exhibiting combustion-improving properties to lower harmful emissions and improve mileage.”
The initial blend of 1.0-percent to diesel products was implemented in 2006,
immediately after the passage of the Philippines Biofuels Act. And while the B2
blend was enforced a year after or in 2007, the targeted hike to B5 had stalled
for about 13 years already.
The industry’s bid for B5 biodiesel blend this year was also backed by the Philippine Coconut Authority (PCA), with Administrator Benjamin Madrigal stressing that “the increase in the domestic demand for coconut oil through the full implementation of B5 will definitely improve the copra farm gate price, and will eventually redound to the benefits of our farmers.”
Based
on estimates, about 695 million liters of CME will be required to underpin the
enforcement of B5 blend to diesel products.
And according to PCA, the figures they have at hand show ample supply of
feedstock to support B5. “That is 1.864 million kilos of coconut oil – more
than enough to support the mandate,” the government-run agency reiterated.
To recall, it was the Philippines that stood as pioneer in enforcing biodiesel
blending to its fuel products more than a decade ago – even way ahead than
neighbors Malaysia and Indonesia.
However, in the blend escalation, the Philippines already lagged behind these
peers in the region as both countries now have their blends at B30 level.
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