Clean energy to light up Mindanao’s off-grid areas

 By: Carmelito Q. Francisco, Julie S. Alipala - 05:00 AM May 28, 2021

https://newsinfo.inquirer.net/1437896/clean-energy-to-light-up-mindanaos-off-grid-areas

DAVAO CITY — The Mindanao Development Authority (MinDA) is banking on two renewable energy projects to help improve access to electricity among the poorest communities in Mindanao still reeling from the impact of the COVID-19 pandemic.

Secretary Emmanuel Piñol, MinDA chair, said the projects included Renewable Energy for Tawi-Tawi Seaweeds (Rets), a hybrid project with solar, photovoltaic, and diesel components to generate about 1.65 megawatts of energy for poor off-grid households in the seaweed-producing communities in the island towns of Sitangkai and Sibutu.

Piñol said the projects would help Mindanao sustain its economic growth stunted by the impact of the pandemic. The MinDA believes that electrification is key to improving the quality of life in Tawi-Tawi, one of the biggest producers of seaweeds but still remained one of the provinces with the least access to stable electricity.

“While our power supply is deemed stable, we inevitably continue to brace for the impact of the COVID-19 pandemic and the threats from various natural disasters,” Piñol said in a statement.

 

EU funding

Rets, which is under construction, is a 4.2-million-euro (P247.25 million) project funded by the EU’s Access to Sustainable Energy Program (Asep), said Assistant Secretary Romeo Montenegro, the deputy executive director of the MinDA.

The project, a partnership between the MinDA and the United Nations Industrial Development Organization Philippines, will benefit more than 3,000 households while providing the energy needs of seaweed postharvest facilities in the area.

Also involved in the project are Tawi-Tawi Electric Cooperative, the Tawi-Tawi provincial government, Mindanao State University-Tawi-Tawi, Association of Isolated Electric Cooperatives Inc., Island Light and Water Energy Development Corp., and the Bangsamoro Autonomous Region in Muslim Mindanao.

The MinDA is also about to implement another EU-funded project under Asep, Integration of the Productive Uses of Renewable Energy.

The 4.5-million-euro (P264.91 million) project seeks to provide renewable energy solutions to the livelihood of poor communities in 10 areas in Mindanao.

Montenegro said it would come in the form of solar-powered facilities to run coffee dryers, ice-making machines, and even irrigation systems in targeted communities in Picong, Lanao del Sur province; Sitangkai and Sibutu in Tawi-Tawi; the towns of Kalamansig, Lebak, Bagumbayan, and Ninoy Aquino in Sultan Kudarat province; Tulunan and Arakan towns, and Kidapawan City in Cotabato province; and Glan town in Sarangani province.

“[The project] is focused on bringing inclusive and sustainable economic and social developments in Mindanao, particularly to families in marginalized and disadvantaged communities through the use of [renewable energy] solutions for their livelihood activities and household energy needs,” the MinDA said in a statement.

 

Military help

This developed as some 3,033 households in Barangay Lupa Pula, Mapun town in Tawi-Tawi finally get to enjoy electricity for the first time after military engineers completed a four-year power project on the island.

Lt. Gen. Corleto Vinluan Jr., commander of Western Mindanao Command, said that by end of the second quarter this year, 2,286 more households—or a total of 5,319 households in 26 sitios (subvillages) on the island—would benefit from the P24.2-million electrification project.

“Mapun is a beautiful island, the people deserve the best here,” Vinluan said. “Let us continue to work together for peace and prosperity here in the beautiful island of Mapun.”’

The project, started on March 13, 2017, is set to be finished by the end of the second quarter this year, according to Brig. Gen. Anthony Cacayuran, commander of the 54th Engineering Brigade, whose unit carried out the construction and installation of the project in the area.

“The project is now 95-percent complete,” he said. “Currently we are doing the installation, stringing and tensioning of aluminum conductor steel reinforced wire on 11 steel poles.

Meralco to re-impose lower convenience fee

 Published May 27, 2021, 2:17 PM by Myrna M. Velasco

https://mb.com.ph/2021/05/27/meralco-to-re-impose-lower-convenience-fee/

 

Power utility giant Manila Electric Company (Meralco) will be re-imposing convenience fee (CF) for online payments of its customers using its Meralco Online and Mobile App, but this will come at a reduced rate of P15 starting June 1 this year.

In an advisory sent to customers, the company emphasized that the CF had been reduced from P47 per transaction previously. The last time that the CF was directly passed on to customer-users had been last year.

With its reinstated CF of lower P15, the utility firm noted that it can be applied even to multiple bills being settled, as long as these are simultaneously done in one transaction.

 “This fee goes to our payment partners,” the company explained; while adding that “with Meralco online, you enjoy real time posting from the safety of your home.”

Meralco suspended the imposition of CF last year at the height of consumer billing complaints on its regulator-mandated “estimated billings” which had arisen because of the enforcement of strict lockdowns in Luzon around March to May last year because of the Covid-19 pandemic.

Instead of passing on the CF as cost-burden to its customers paying online, Meralco decided to waive the fee and it just absorbed the cost so it can help ease the burden of the consumers.

The power firm had pointed out that payments via the Meralco app “go through a payment gateway operated and maintained by PayMaya, which is linked to the visa and mastercard networks.”

PayMaya has been previously charging Meralco the convenience fee of P47 per transaction, which is integrated in the payment that customers of the utility firm will have to settle as additional charge when they would opt to pay their bills via the app.

Meralco stressed that “no part of the convenience fee goes to Meralco,” and that “the charging of a convenience fee by a payment gateway provider is a common commercial practice in the online payment service industry.”

The use of the app for Meralco bill payments was launched in September 2018 to provide an additional round-the-clock payment channel that customers can use at their convenience and at the safety of their homes.

In addition to bill settlements, the Meralco online app “allows customers to perform filing of service application for both sales and after-sales, view their account/billing/payment records, report outages/concerns and access other value-added services, such as energy efficiency tips, appliance calculator and business center locator.”

First Gen borrows $308M primarily for San Lorenzo gas plant

 Power Philippines News on May 27, 2021 at 8:17 am

https://powerphilippines.com/first-gen-borrows-308m-primarily-for-san-lorenzo-gas-plant/

 

First Gen Corporation announced that it has signed six-year term loan facilities amounting to $308 million (around Php14.8 billion) with four banks primarily to repay the existing debts of its 500-megawatt (MW) San Lorenzo liquefied natural gas (LNG) power plant worth $164 million (around Php7.89 billion).

The agreement was particularly signed by First Gen subsidiary FGP Corporation, which owns and operates the plant, and the Bank of the Philippine Islands, BDO Unibank, Philippine National Bank, and Sumitomo Mitsui Banking Corporation Singapore Branch.

Meanwhile, the balance would be used to pre-fund First Gen’s upcoming projects in the next 12 months.

“The combined debt facilities totaling US$308 million is a testimony to the strong support and continuing confidence of our lenders in First Gen’s natural-gas business. First Gen pioneered this business about 24 years ago and it has since reached even greater heights,” First Gen President and COO Francis Giles Puno said in a statement.

“The natural gas platform now stands at 2,017MW and we are working hard to deliver the country’s first Interim Offshore LNG Terminal Project, as well as additional natural gas-fired power plants,” he continued.

First Gen is expected to complete the LNG terminal in 2022.

The Lopez-led firm recently confirmed its interest to buy the Philippine National Oil Company’s “banked gas” from Malampaya to power its four gas plants in Batangas City. Aside from San Lorenzo, First Gen also owns the Santa Rita, Avion, and San Gabriel facilities.

Phoenix says ‘no knowledge’ of banked gas purchase

May 27, 2021 | 12:05 am
https://www.bworldonline.com/phoenix-says-no-knowledge-of-banked-gas-purchase/

PHOENIX Petroleum Philippines, Inc. has denied knowledge of “any manifest interest” in buying the state energy firm’s unused natural gas in the Malampaya field after the latter’s top official said the listed oil company made an offer.

“[Phoenix Petroleum] has no knowledge of any interest to purchase banked gases as of date of writing,” it said in a regulatory filing on Wednesday.

“Should there be any manifest interest and the board approves the same, we shall make the necessary disclosures at the appropriate time,” it added.

It made the disclosure after Philippine National Oil Co. (PNOC) President and Chief Executive Officer Reuben S. Lista was earlier quoted in a Manila Bulletin news report to have said that Phoenix Petroleum is offering to buy the banked gas.

Phoenix Petroleum, led by Davao-based businessman Dennis A. Uy, said the statement was “unconfirmed.”

Their statements come after Shell Petroleum N.V. announced on Thursday last week that it had signed an agreement with Malampaya Energy XP Pte. Ltd. for the sale of its 100% shareholding in Shell Philippines Exploration B.V. (SPEx).

Malampaya Energy XP is a unit of Udenna Corp., a holding firm also led by Mr. Uy.

SPEx holds a 45% operating interest in Service Contract (SC 38), which includes the gas producing Malampaya, the offshore northern Palawan field.

Shell said the base consideration for the sale is $380 million, with additional payments of up to $80 million between 2022 to 2024 “contingent on asset performance and commodity prices.”

The acquisition of SPEx’s stake is set to give Mr. Uy’s group 90% interest in the Malampaya gas-to-power project.

In Oct. 25, 2019, Udenna announced that its unit UC Malampaya Philippines Pte. Ltd. (now named UC38 LLC) had signed an agreement to acquire 100% of the shares of Chevron Malampaya LLC, which held 45% interest in the gas field.

Malampaya is operated by SPEx, with the third joint venture partner being PNOC Exploration Corp. with a 10% stake.



FIRST GEN KEEN ON BANKED RESERVES
In a separate filing on Wednesday, Lopez-led First Gen Corp. said that it is still interested to buy PNOC’s banked gas.

“First Gen confirms its continuing interest to purchase the Malampaya banked gas of [PNOC], for use by the company’s gas-fired power plants,” the company said in a disclosure, adding that it had expressed interest in the unused reserves as early as 2016.

The company operates four gas-fired power plants in Batangas City, namely: the 1,000-megawatt (MW) Santa Rita, 500-MW San Lorenzo, 97-MW Avion, and 420-MW San Gabriel.

The Santa Rita, San Lorenzo, and San Gabriel plants deliver baseload supply, while Avion provides for peaking power in the Luzon grid.

On Wednesday, Phoenix shares at the local bourse inched up 0.15% or two centavos to finish at P13.10 apiece, while First Gen shares shed 0.34% or 10 centavos to close at P29.40 each. — Angelica Y. Yang

Iloilo gets new power distributor

 May 27, 2021 12:20 AM By Alvin Murcia

https://tribune.net.ph/index.php/2021/05/27/iloilo-gets-new-power-distributor/

 

The Supreme Court (SC), on a 9-6 vote released on Tuesday, gave tycoon Enrique Razon’s More Electric and Power Corp.’s (MORE) control of the energy distribution in Iloilo.

With the decision came with the approval for MORE to expropriate properties of the present power distribution system in Iloilo owned by Panay Electric Company Inc. (PECO).

PECO has been the province’s power distributor since 1923.

The vote was made via an 18-page resolution that affirmed the High Court’s 20 September 2020 decision that settled the dispute between MORE and PECO over control of the power distribution business in the province.

The High Bench upheld the constitutionality of Sections 10 and 17 of Republic Act (RA) 11212 (MORE’s franchise) in affirming the decision.

It gives MORE the power of an eminent domain, and to expropriate any asset, including existing distribution assets in the city.

“Clearly, in granting MORE the right to exercise eminent domain, the primordial concern of the Congress is the welfare of the residents of Iloilo City who rely on the distribution system of PECO. There is no question that PECO’s franchise was not renewed, thus, it can no longer operate the distribution system in Iloilo City,” the SC ruled.

“MORE as the new franchisee is mandated under Section 2 of RA No. 11212 to operate and maintain the distribution system in the best manner possible.

To be able to do so, its right to expropriate the distribution system in Iloilo City to ensure uninterrupted supply of electricity should not be hampered by unfounded allegations of undue benefit and corporate takeover,” it added.

PECO’ motion for reconsideration, saying that these “have been squarely and extensively” discussed in its 15 September ruling, was not given weight by the court.

In opposing PECO’s appeal, MORE argued that its rival has no absolute discretion on how and when to dispose of its distribution assets since these are regulated assets established for the sole purpose of supplying electricity to end-users in Iloilo City.

MORE added that PECO lost its right to occupy public streets and skyline when its franchise expired, thus has the obligation to uproot, dismantle and remove its posts, wires, transformers, and electric meters.

The power firm said that to require it to build a new distribution system is anti-consumer and would deny the consumers of Iloilo City their right to continued service.

The SC, in siding with MORE, ruled that the authority granted to MORE under its franchise to expropriate the existing distribution system of PECO is a valid delegation of power.

“The power of eminent domain is exercised by the legislature. However, it may be delegated by Congress to the President, administrative bodies, local government units and even to private enterprise performing public services,” the Court said.

Former DOE official wants LNG tagged as fuel of choice

posted May 26, 2021 at 06:21 pm by Alena Mae S. Flores
https://manilastandard.net/business/power-technology/355500/former-doe-official-wants-lng-tagged-as-fuel-of-choice.html

A former energy official asked the government to declare liquefied natural gas as fuel of choice for power generation to promote the development of the emerging LNG industry.

"We can encourage building LNG or gas-fired power plants, but we need market or demand to come in, and only way to do that is perhaps to convince government to select LNG as a preferred fuel for purposes of building a power plant," said Jose Layug Jr., a senior partner at Puno & Puno Law Offices and a former undersecretary of the Department of Energy.

Layug made the comment during the LNG Opportunities in the Philippines 2021 webinar presented in cooperation with the Norwegian Embassy in Manila.

"So we’re hoping for that declaration of policy stating that LNG as preferred fuel, together with renewables of course, because both technologies have become much cheaper," Layug said.

He cited the recent successful bid of San Miguel Corp.'s Excellent Energy Resources Inc. to supply Manila Electric Co. 1,200 megawatts from its planned LNG power plant in Batangas at P4.10 per kilowatt-hour.

"In terms of total import capacity, there’s about 18 million tons per annum of LNG supposed to be built and that’s equivalent to about 10,900 MW," Layug said.

Seven companies expressed interest to build LNG import terminals. The first import terminal is seen to be completed next year. With more terminals to be built, fuel can be made available to LNG power plants, he said.

Layug said the challenge for the LNG market is that Meralco was planning to procure only 1,600 MW of baseload and mid-merit capacity in the next three years.

"There is a proposal of about 10,900 MW equivalent of LNG projects, but in next two to three years only 1,600 MW will be offered for PSA [power supply agreements]. We don’t want the market to have stranded assets at end of the day," he said.

Layug said the CSP rules for offtake agreements which are supposedly technology-neutral, are also rigid.

"In other words, if I am a distribution utility, I cannot go out for public tender and choose my technology. I would have wanted a cleaner fuel or natural gas or LNG but currently I am prevented from ding that," Layug said.

"Hopefully, than can be addressed where an unsolicited proposal for a specific technology can be submitted by an LNG player to a distribution utility and if accepted, can be subjected to a price challenge. That procedure is also a form of public bidding that has been recognized by the Supreme Court," he said.

SMC Power Unit To Plant 1.1M Trees Across Eight Provinces This Year

http://pageone.ph/smc-power-unit-to-plant-1-1m-trees-across-eight-provinces-this-year/

San Miguel Corporation’s power unit is set to plant 1.1 million seedlings this year as part of its seven-year upland and mangrove forest rehabilitation initiative covering 4,000 hectares of land that has expanded to more than seven provinces in the country.

The program, dubbed “Project 747” and spearheaded by SMC Global Power Holdings Corp., first launched in 2019 and has so far planted a total 1,994,988 seedlings and propagules over 620 hectares of land as of December 2020.

It brings together employee volunteers and partner farmer and fisherfolk associations, who work together to plant and take care of the forests.

“With close to two million trees planted in two years, this shows the dedication and commitment of our SMC Global Power’s employee volunteers, our partner organizations, and our government agencies, in rehabilitating forests and growing new ones in both upland and coastal areas,” Ang said.

“Last year, because of pandemic restrictions, we were only able to plant 900,000 trees and mangroves. This year, we intend to make up for it by planting 1.1 million trees, when the rainy season starts,” said Ang.

The environmental program serves as a carbon sequestration mechanism to help mitigate climate change. Essentially, forests capture carbon dioxide (CO2) from large point sources such as power facilities, which trees and plants then convert into oxygen through the natural process of photosynthesis.

It involves the rehabilitation of 2,800 hectares of upland forests and 1,204 hectares of mangrove forests in Pangasinan, Zambales, Bataan, Bulacan, Quezon, Albay, Negros Occidental, and Davao Occidental.

“Caring for the environment is key to mitigating the global problem of climate change. While we work hard to provide for the growing energy needs of Filipinos, we also do not stop looking for better technology and sustainable solutions to reduce impact to the environment,” Ang said.

“Sustainability has always been ingrained in our company culture and built into all aspects of our businesses, that is why we continuously invest on programs that preserve the environment and promote environmental stewardship among various stakeholders,” he added.

Ang underscored the role played by local farmer groups and fisherfolk organizations that help identify the indigenous tree varieties to be planted in their respective areas. They are also crucial in the implementation of planting and livelihood initiatives, and ensuring the high survival rates of young trees.

“Our partner farmer and fishermen know their areas very well since they’ve been living and working there all their lives. So with the help of the Department of Environment and Natural Resources (DENR), we tap into their local knowledge on what plant species are endemic in their areas, and enlist their help in nurturing these trees to adulthood,” Ang related.

He noted that survival rates of planted seedlings and mangrove propagules are at an average of 89 and 91 percent, respectively.

Tree varieties in the upland plantation are Narra, Molave, White Lauan, Palosapis, Agoho, Batino, Igang, and Malabayabas while mangrove varieties planted include Bakawan Babae, Bakawan Lalaki, Bungalon, and Api-Api.

“The tree planting component, although massive in its size and scope, is only one part of the program that also aims to address the social and economic needs of our community partners, and leverage on their capacity for livelihood development and environmental stewardship,” he said.

Other components of the program, include initiatives on empowering the community, livelihood development, a Biochar Community Enterprise Development project, Adopt-a-River, and Coral Reef Rehabilitation projects.

Ang said he is particularly proud of the Biochar Community Enterprise Development Project as it complements the forest rehabilitation program as a carbon sequestration mechanism. Five Biochar partner communities help in the production and utilization of Biochar as an organic fertilizer applied to the soil to ensure higher survival rate of the trees.

Meralco to source 1,500-MW renewable power in next 5 years

May 26, 2021 | 12:06 am
https://www.bworldonline.com/meralco-to-source-1500-mw-renewable-power-in-next-5-years/

MANILA Electric Co. (Meralco) plans to draw on renewable energy (RE) sources for 1,500 megawatts (MW) of its power needs in the next five years as the firm ramps up the construction of utility-scale renewables plants, a company official said on Tuesday.

“We aim to accelerate our transition to cleaner energy as we pledge to source 1,500 MW of power requirements from renewable energy sources in the next five years,” Meralco Chief Executive Officer and President Ray C. Espinosa said during the company’s annual stockholders’ meeting held virtually on Tuesday.

“We are also committed to building up to 1,500 MW in utility scale renewable energy power plants in the next five to seven years,” he added.

This comes about two weeks after Meralco PowerGen Corp. (MGen) said that its subsidiary had begun commercially operating a 50-MW solar plant in San Miguel, Bulacan after receiving clearance from the Energy Regulatory Commission (ERC). MGen is the renewable energy arm of Meralco.

On Tuesday, the Meralco official also gave updates on the firm’s sustainability initiatives, which include shifting to electric vehicles to serve its business centers in the capital and upgrading its distribution transformers to run on plant-based oil.

“We are moving towards the electrification of Meralco’s vehicle fleet. Beginning this year, we will deploy electric pickups, vans, cars and motorcycles to serve our Metro Manila business centers,” he said.

Mr. Espinosa said the firm is building up its “Race to Zero Waste Program,” which will cover its distribution network as well.

“Going forward, one hundred percent of our new distribution transformers will be powered by plant-based natural ester oil, making these assets 99% recyclable and biodegradable,” he said.



‘BILL SHOCK’ NOT LIKELY
Meanwhile, Mr. Espinosa said a “bill shock” is not likely to happen amid varying lockdowns imposed by authorities.

“We do not expect the same bill shock problem that we encountered last year. In fact, even with the declaration of ECQ (enhanced community quarantine) and MECQ (modified enhanced community quarantine), our meter readers have been able to read the meters and use this meter readings for the proper billing,” he said, referring to the strick lockdowns that authorities placed over the capital and nearby areas.

He added that the firm is grateful to the Energy department, the Energy Regulatory Commission and partner local government units for allowing Meralco to deploy its meter readers during this period.

In May last year, the country’s largest distribution utility said that the bill shock reflected on customers’ accounts was caused by the hike in electricity charges computed based on the actual consumption in kilowatt-hours from the current meter reading, plus the estimated consumption reflected in the deferred April and March bills.

Meralco previously said that its consolidated core net income in the first quarter declined by 11% to P5.11 billion year on year as energy sales from the commercial sector slumped due to the impact of the pandemic.

However, its attributable net income for the quarter ending March, stood at P4.33 billion, higher by around 65% from P2.62 billion in the same period last year.

Shares in Meralco at the local bourse improved by 0.59% or P1.6 to close at P274 apiece on Tuesday.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls. — Angelica Y. Yang

Firm’s ER 1-94 remittances help build lab in Iloilo City

posted May 26, 2021 at 12:50 am by Manila Standard
https://manilastandard.net/lgu/vizayas/355425/firm-s-er-1-94-remittances-help-build-lab-in-iloilo-city.html

Global Business Power Corporation (GBP), through subsidiaries Panay Energy Development Corporation (PEDC) and Panay Power Corporation (PPC), has supported Iloilo City and its efforts to fight COVID-19 through Energy Regulations 1-94 (ER 1-94) funds.

Recently, the Iloilo City government was able to accommodate the development of the Uswag Iloilo City Molecular Laboratory in Molo district, with a total budget of P53 million, using Iloilo City and Barangay Ingore’s ER 1-94 fund share out of PEDC and PPC’s electricity sales.

The molecular lab in Molo can process as much as 600 samples daily with a turnaround time of 24 hours. With the development of the said lab, residents of Barangay Ingore now have access to COVID-19 PCR tests and other lab services.

“Beyond the provision of stable power supply, GBP is committed to helping Iloilo City in its response against COVID-19. We hope that this molecular laboratory will enable faster release of reliable results and in effect, mitigate the spread of the virus,” shared GBP President Jaime T. Azurin.

The ER 1-94 program stipulates that host communities are entitled to financial benefits of one-centavo for every kilowatt-hour (P0.01/kWh) of the total electricity sales of generating companies to finance electrification, livelihood, and development projects.

Pursuant to the Department of Energy’s Department Circular No. 2020-04-0008, ER 1-94 funds can be used to help local government units in their fight against the pandemic.

True to its commitment of enlightening lives and empowering progress, GBP is a dedicated partner of the nation in raising the quality of life of the Filipino and fueling economic development.

GBP, with a total gross capacity of 1,091 MW, has diversified power generation facilities that are capable of supplying base, intermediate, peak load, and ancillary support.

Electricity demand in Meralco franchise area grew in April

By Lenie Lectura May 26, 2021
https://businessmirror.com.ph/2021/05/26/electricity-demand-in-meralco-franchise-area-grew-in-april/

Electricity demand in the franchise area of the Manila Electric Co. (Meralco) for April this year has improved versus April 2020 as government ramps up its Covid-19 vaccination drive.

Meralco President Ray C. Espinosa said during the company’s stockholders’ meeting Tuesday that last month’s energy sales stood at 14,261 gigawatt hours (GWh), up 3 percent from the 13,856GWh in the same month last year. Net Systems Input (NSI) also improved by 2 percent to 15,001GWh from 14,655GWh in the same period last year.

“The first few months of the year show evidence of recovery and healthy growth. Through April 2021, energy sales grew 3 percent and NSI by two percent compared with the same period last year. Likewise, we continue to energize more customers as shown by year-to-date customer count growth rate of 4 percent,” said Espinosa.

As of end-April, Meralco customer base grew 4 percent to 7.23 million from last year’s 6.96 million.

Moving ahead, Meralco said it would continue to heighten revenue enhancement and expansion programs. Espinosa said Meralco would accelerate its electrification program, expand its business by serving new areas through key partnerships and also expand pole management operations to urban services and non-cable attachments.

“We are moving towards the electrification of Meralco’s vehicle fleet beginning this year. We will deploy electric pickups, vans, cars and motorcycles to serve our Metro Manila business centers. We will also heighten our race to zero-waste program not only in the centers of our operations but also to the edges of our distribution network.

Going forward, 100 percent of our new distribution transformers will be powered by plant based natural ester oil, making these assets 99 percent recyclable and biodegradable,” said Espinosa.

Meralco reported in March that its profits fell by nearly a third in 2020 as the slight increase in demand for electricity from its residential customers could not offset the sudden drops in demand from its commercial and industrial clients.

Based on a regulatory filing, Meralco’s reported net income stood at P16.32 billion as of end-December, a 30-percent plunge from P23.29 billion the year prior, as its revenues declined by 14 percent to P275.30 billion from P318.32 billion.

The company said its income in the first quarter grew by 66 percent year-on-year to P4.3 billion, while core profit fell 11 percent year-on-year to P5.1 billion.

Meralco Chief Finance Officer Betty Siy-Yap said the company’s net income during the period was largely attributed to foreign exchange gain, re-evaluation of Meralco’s investment in Global Business Power Corp. and non-core expense adjustment.

Meralco to source 1,500-MW renewable power in next 5 years

May 26, 2021 | 12:06 am
https://www.bworldonline.com/meralco-to-source-1500-mw-renewable-power-in-next-5-years/

MANILA Electric Co. (Meralco) plans to draw on renewable energy (RE) sources for 1,500 megawatts (MW) of its power needs in the next five years as the firm ramps up the construction of utility-scale renewables plants, a company official said on Tuesday.

“We aim to accelerate our transition to cleaner energy as we pledge to source 1,500 MW of power requirements from renewable energy sources in the next five years,” Meralco Chief Executive Officer and President Ray C. Espinosa said during the company’s annual stockholders’ meeting held virtually on Tuesday.

“We are also committed to building up to 1,500 MW in utility scale renewable energy power plants in the next five to seven years,” he added.

This comes about two weeks after Meralco PowerGen Corp. (MGen) said that its subsidiary had begun commercially operating a 50-MW solar plant in San Miguel, Bulacan after receiving clearance from the Energy Regulatory Commission (ERC). MGen is the renewable energy arm of Meralco.

On Tuesday, the Meralco official also gave updates on the firm’s sustainability initiatives, which include shifting to electric vehicles to serve its business centers in the capital and upgrading its distribution transformers to run on plant-based oil.

“We are moving towards the electrification of Meralco’s vehicle fleet. Beginning this year, we will deploy electric pickups, vans, cars and motorcycles to serve our Metro Manila business centers,” he said.

Mr. Espinosa said the firm is building up its “Race to Zero Waste Program,” which will cover its distribution network as well.

“Going forward, one hundred percent of our new distribution transformers will be powered by plant-based natural ester oil, making these assets 99% recyclable and biodegradable,” he said.



‘BILL SHOCK’ NOT LIKELY
Meanwhile, Mr. Espinosa said a “bill shock” is not likely to happen amid varying lockdowns imposed by authorities.

“We do not expect the same bill shock problem that we encountered last year. In fact, even with the declaration of ECQ (enhanced community quarantine) and MECQ (modified enhanced community quarantine), our meter readers have been able to read the meters and use this meter readings for the proper billing,” he said, referring to the strick lockdowns that authorities placed over the capital and nearby areas.

He added that the firm is grateful to the Energy department, the Energy Regulatory Commission and partner local government units for allowing Meralco to deploy its meter readers during this period.

In May last year, the country’s largest distribution utility said that the bill shock reflected on customers’ accounts was caused by the hike in electricity charges computed based on the actual consumption in kilowatt-hours from the current meter reading, plus the estimated consumption reflected in the deferred April and March bills.

Meralco previously said that its consolidated core net income in the first quarter declined by 11% to P5.11 billion year on year as energy sales from the commercial sector slumped due to the impact of the pandemic.

However, its attributable net income for the quarter ending March, stood at P4.33 billion, higher by around 65% from P2.62 billion in the same period last year.

Shares in Meralco at the local bourse improved by 0.59% or P1.6 to close at P274 apiece on Tuesday.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls. — Angelica Y. Yang

Aboitiz Power inks power supply deal with Nestle

Published May 25, 2021, 10:39 AM by Myrna M. Velasco
https://mb.com.ph/2021/05/25/aboitiz-power-inks-power-supply-deal-with-nestle/

Listed firm Aboitiz Power Corporation has inked a new power supply agreement with Nestle Philippines, which calls for the delivery of 24.46 megawatts of capacity to meet the latter’s energy needs.

The supply of power to the multinational food and drink company will cover its factories in Luzon, as well as Nestle’s head office in Makati City, according to Aboitiz Power. No pricing details had been given for that power supply deal.

The capacity purchase helmed under Aboitiz Power’s Cleanergy brand, was concretized within the ambit of the Retail Competition and Open Access (RCOA) policy in the restructured electricity sector.

Juan Alejandro Aboitiz, head of the Commercial Operations Business Unit of Aboitiz Power, emphasized that Nestle’s sourcing of electricity supply from a renewable energy facility will aid it on its ‘net zero’ aspirations.

To become a ‘net zero’ entity, a company shall be able to fully offset its carbon emissions via the green energy solutions it has been leaning on. Although for a food firm like Nestle, the bigger assault they are known to be inflicting on the environment is actually on the use of plastics in their product packaging, hence, this is one area being seriously resolved also on achieving their sustainability agendas.

Still, Aboitiz noted that “through the supply of Cleanergy to Nestle Philippines, we are able to reduce greenhouse gas in the equivalent of 24,736 cars driven in a year, or 12.8 million gallons of gasoline consumed.”

As their new power supply pact is considerably a follow-through of a partnership on such sphere that started in 2013, Aboitiz stated they are looking forward “to continuing this journey with Nestle Philippines in growing their business and helping them achieve their sustainability goals even beyond their need for renewable energy.”

He qualified that net zero targets are being aligned with Aboitiz Power’s portfolio rebalancing in the next 10 years — in which the next round of investments will mainly be on renewables and other clean energy technologies, like gas.

“The company aims for a 50:50 balance between its Cleanergy and thermal capacities by 2030, in an effort to build the country’s renewable energy market and contribute to the global sustainability goals,” Aboitiz reiterated.

To recall, Aboitiz Power’s project installations in recent years had been predominantly coal-fired plants; hence, the targeted RE and liquefied natural gas-fed projects moving forward will provide a counterweight to that.

Malampaya sale: DoE sets review

May 25, 2021 12:25 AM By Maria Romero
https://tribune.net.ph/index.php/2021/05/25/malampaya-sale-doe-sets-review/

Department of Energy (DoE) Secretary Alfonso G. Cusi on Monday said his office will evaluate the transaction once it is completed to ensure that it passes any possible regulatory hurdle that may arise.

“Once the transaction has been completed at the consortium level, it will still be submitted to the DoE for its review and approval in accordance with Presidential Decree No. 87 otherwise known as the Oil Exploration and Development Act of 1972 (PD87),” Cusi said.

“For its part, the DoE will, accordingly and judiciously, evaluate the legal, financial, and technical aspects of the transaction, and its impact on the obligations of the consortium to the Philippine government according to the terms of SC38 and PD87,” he added.

Cusi also noted that the DoE will ensure that the multi-billion transaction will not hit any regulatory snag.

The energy chief pointed out that any agreement between Udenna Corp. subsidiary Malampaya Energy XP Pte Ltd. and Shell Philippines Exploration B.V. (SPEX) on the acquisition of SPEX’s 45 percent participating interest in Petroleum Service Contract No. 38 (SC38) is a private business transaction.

“In other words, the Department of Energy did not take part in the decision of SPEX to sell, the bidding or negotiations that ensued, and its outcome,” Cusi said.

Cusi underscored that transfer of a participating interest in SC38 Malampaya Consortium is governed by the terms of the Joint Operating Agreement (JOA) entered into by the members.
“Under the JOA, all parties must first consent to a sale of any or all participating interest,” he said.

The sale has a base consideration of $380 million, with additional payments of up to $80 million between 2022 to 2024 contingent on asset performance and commodity prices.
Subject to partner and regulatory consent, the transaction is targeted to complete by the end of the year.

If all goes according to plan, Udenna Corp. will assume the operatorship of the gas field, since that has been the function of SPEX in the multi-billion gas field project.
It can be recalled that Shell is the second multinational giant to exit from the Malampaya venture.

The first one to give up its share was American firm Chevron Corporation, which sold its 45-percent stake in the project to UC38 LLC — another unit of Udenna Corp. for $565 million.

The new Malampaya joint venture partners are now just Udenna and state-run Philippine National Oil Company-Exploration Corporation, which holds the remaining 10 percent of the project.

Malampaya natural gas field has been operating since 2002 and has contributed over $10 billion in revenues to the Philippine government to date.

The contract of the Malampaya natural gas field will expire in 2024. The consortium involved in developing the project had signified interest to extend the contract.

AC Energy inks power supply deal with consumer goods firm

Danessa Rivera (The Philippine Star) - May 25, 2021 - 12:00am
https://www.philstar.com/business/2021/05/25/2100529/ac-energy-inks-power-supply-deal-consumer-goods-firm

MANILA, Philippines — AC Energy Corp. (ACEN) has secured a deal to provide renewable energy to the Laguna plant of consumer goods company Pacific Synergy Food and Beverage Corp.

Under the energy supply agreement, Pacific Synergy’s power needs during peak operational hours will be energized by renewable energy from ACEN’s portfolio of operating wind, solar and geothermal power plants for the next two years or around 28,913 megawatt-hours (MWh) of renewable energy.

Providing renewable energy during peak hours is projected to eliminate an estimated 1,500 tons of carbon dioxide equivalent for the duration of their engagement or the equivalent of taking 324 cars off the road annually.

The energy supply agreement with ACEN is Pacific Synergy’s first renewable energy power purchase for the electricity supply of its plant operations.

“The switch to renewable energy through our partnership with AC Energy is a major milestone for us, not only in reducing the carbon footprint of our expanding operations, but also in supporting the sustainable development and low-carbon future of the country,” Pacific Synergy president Charles Stewart Lee said.

“We are proud to enable the development of new renewable energy plants and encourage the growth of the green energy sector and help create much needed jobs,” he said.

Apart from ensuring that the energy they will use in operating their business will come from sustainable power sources, Pacific Synergy will also get to support the growth of the emerging renewables sector and take part in the energy transition from fossil fuels to green energy sources.

“AC Energy provides businesses that are looking for ways to achieve their sustainability goals a jumpstart to their renewable energy journey and reduce their carbon footprint in a hassle-free and cost-efficient way,” ACEN executive director and head of commercial operations Miguel de Jesus said.

“Pacific Synergy’s decision to procure renewable energy from us provides a boost to our program as we aim to rapidly expand these positive switches to green energy in the Philippines and across the region, and play a meaningful role in the green-led recovery,” he said.

The Ayala power unit said the retail renewable electricity program allows companies to “green” their energy sources through a number of ways: by directly purchasing energy from the company’s operating renewable energy plants, by purchasing carbon credits to offset their carbon emissions, and by becoming direct enablers of the energy transition wherein their investment will be funneled into building new renewable energy power plants, a crucial component in the green-led recovery.

AC Energy is also positioning itself to be a one-stop shop for the energy needs of its retail clients, providing competitively priced and tailor-fitted plans anchored on great customer experiences.

A player in the food and beverage arena, Pacific Synergy produces SIP Purified Water, its first product. The company recently introduced Actipure – its line of alcohol and hand sanitizers – and Hearth – a line of products designed to protect the environment.

Meanwhile, ACEN expanded its portfolio and augmented its generating capacity with the construction of two new solar plants, battery storage and firming facilities in Luzon.

These sustainable investments created more than 3,000 jobs within its host communities that became vital pieces towards reigniting the economy and creating economic activity.

AC Energy now has 1,200 megawatts of attributable capacity in the Philippines, with more than half coming from renewable sources.

The company’s strong balance sheet complemented by a robust pipeline of renewable energy projects places it an excellent position towards its aspiration of becoming the largest listed renewables platform in Southeast Asia.

EDC to continue geothermal plant projects abroad

 posted May 24, 2021 at 07:15 pm by  Alena Mae S. Flores 

https://manilastandard.net/business/power-technology/355329/edc-to-continue-geothermal-plant-projects-abroad.html

 

Energy Development Corp. said Monday it will continue to develop geothermal projects in Indonesia, Peru, Taiwan, and Chile as part of its expansion.

“Although the COVID situation and the accompanying travel restrictions have caused some delays in EDC’s activities in Indonesia and Taiwan, the company continues to be keen on those markets,” EDC said.

EDC said it would continue pre-development activities in its geothermal concessions in Indonesia, Chile, and Peru. The company intends to develop the Graho Nyabu project in Indonesia.

EDC said Peru and Chile could be key markets for the expansion program as their governments started to see the value of true base-load renewable energy such as geothermal.

The company said it was also looking at Taiwan for potential expansion because of favorable feed-in tariff for geothermal energy.

EDC plans to allocate $280 million in capital expenditures this year for drilling and investments as the COVID-19 pandemic resulted in the postponement of key activities last year.

The capex would cover the development of binary growth projects—specifically the 3.6-megawatt Mindanao 3 and the 29-MW Palayan Bayan projects.

The company operates in the four geothermal service contract areas where it is principally involved in the generation and sale of electricity through company-owned geothermal power plants to National Power Corp., electric cooperatives, privately-owned distribution utilities, large industrial clients and the National Grid Corp. of the Philippines, pursuant to power purchase agreements, Wholesale Electricity Spot Market, ancillary services procurement agreements and feed-in-tariff.

EDC posted a net income of P3.26 billion in the first quarter, up 2 percent from P3.194 billion it earned in the same period in 2020.

The increase was due to higher revenue (P532 million), lower interest expense (net P92.6 million), and provision for income tax (P120 million) partly offset by higher costs of sale and general and expenses (P643.3 million) and other charges (net P34.6 million).