Boo Chanco June 4, 2021 - 12:00am
https://www.philstar.com/business/2021/06/04/2102904/power-failure
It’s like Nero fiddling while Rome was burning. The energy secretary was in Cebu playing politics while the Luzon grid was suffering power brownouts.
Assuring power supply stability is the energy secretary’s main responsibility. And he failed. Worst part is, the problem could have been predicted if DOE was doing its job.
Due to DOE negligence, it caught people by surprise. The inconvenience of a power failure during one of the hottest summers we have experienced made many angry at the Duterte administration.
Here is how my friend, Lito Madrasto, puts it in his Facebook post:
“Recurring brownouts in the NCR+? What’s going on? Electricity demand at this time is down! Schools are closed! Movie houses are closed! Majority of offices are closed! Most shops in malls are still closed! Majority of resorts are still closed!
“Restaurants are partially open! Even churches, mosques, and other places of worship are partially opened! Only hospitals are full! Only upper- and middle-class homes are using air conditioners!
“So why is there a power shortage?
“What’s going on?”
People working from home had a very unproductive day. Many are now being called to work at their offices because they have generators there. Never mind if they are in danger of catching COVID through central air conditioning systems not yet retrofitted to deal with aerosol infection of the virus.
During a recent hearing of the Joint Congressional Energy Commission, lawmakers repeatedly asked DOE officials if there would be brownouts or blackouts this June.
“Sa ngayon po wala tayong nakikitang high risk na magkakaroon tayo ng shortage,” Secretary Alfonso Cusi assured.
Mario Marasigan, director of the DOE’s Electric Power Industry Management Bureau, said Luzon is not expected to hit the peak demand of 11,841 megawatts. But he didn’t provide for forced plant outages.
Sen. Win Gatchalian complained in a tweet: “The committee was assured by the DOE that no brownouts will happen given that the country is in a delicate stage of its vaccine roll out. They should explain why their projections are off! They are the sole agency tasked to assure the public of the constant flow of electricity to homes.”
NGCP implemented a rotational supply interruption or manual load dropping (MLD) – the standard procedure during a red alert – starting at 1:11 pm last Monday. Supply was iffy this whole week and will be into next. Three large power plants are offline, contributing to the tight supply.
Sources in the power industry blame NGCP for the problem. They claim NGCP is not buying enough power for ancillary supply. NGCP’s total contingency reserve supply had been about 50 percent below what is required.
Last April 24, the energy department issued a press release pointing out that for the past two years, they have been reminding the NGCP of its obligation to provide sufficient levels of ancillary services (AS) or power reserves, as provided in a department circular.
DOE complained that “the NGCP is consistent on not complying with its responsibility with the firm contracting requirement. The NGCP has been dragging its feet by pursuing insufficient capacity and even opting an unreliable contracting of ‘non-firm’ AS Procurement Agreements (ASPAs),” Secretary Cusi said.
So, DOE ordered NGCP to renegotiate its existing non-firm contracts and comply with the 100 percent firm AS requirement. But as of December 2020, the NGCP’s level of firm contracted AS are still way below the mandated requirement as approved by the Energy Regulatory Commission.
It would seem, by ignoring the DOE order, NGCP is sacrificing grid stability for greater profits. Never mind that the company is already so profitable it is virtually printing money.
But why is DOE walking on eggshells and unable to enforce its orders? Are they worried about displeasing the Chinese minority equity holders in NGCP?
This gives power failure a new meaning: failure to use the power of government in the public interest. Why?
There is another problem begging to be addressed. Many of our large baseload power plants are about 30 years old. These were built as a reaction to the power crisis during the last years of the Cory administration.
Many of these old plants are also not being maintained as well as they ought to be. Perhaps it is a question of lack of incentives to spend on ageing plants. The result is forced outages and prolonged outages. One of the Sual coal fired plants is a good example.
With supply and demand balance at critical levels, we should be building new plants. Or how can we meet the demands of a tiger economy we are hoping will emerge from the ashes of this pandemic?
As it is now, stringent primary and secondary market price caps distort the market and discourage investment in dispatchable peaking capacity. In other countries, market price caps are a lot higher, resulting in real price signals for new investment.
Industry sources also tell me that there ought to be prioritization of ancillary reserves for grid stability. If AS requirements are fully served, the true condition of the demand/supply margin is seen way ahead and investments will follow.
“New investments are slow moving because you are beholden to the demands of the distribution utility and the energy commission. The acceleration of an energy forwards market can help build confidence for new investment.
“In simple terms… government controlling a little, ERC delaying, government not implementing reserve requirements… The usual…”
Of course, there are many things we want to do about our power supply. We want to have more renewable sources. We want competitive power pricing to make our industry regionally competitive. We want to protect the ordinary consumer.
But the big elephant in the room is: how much energy capacity do we need for the next 20 to 30 years and how will we be able to make that capacity available?
Given the time it takes to build a power plant, it will be too late to do anything soon enough. And we go through another power crisis, putting economic growth in jeopardy all over again. We can’t be that stupid. Or are we?
Friday, June 4, 2021
3 agencies to help DOE in gencos’ cases
by Lenie Lectura June 4, 2021
https://businessmirror.com.ph/2021/06/04/3-agencies-to-help-doe-in-gencos-cases/
Malacañang has instructed the Energy Regulatory Commission (ERC), the Philippine Competition Commission (PCC) and the Department of Justice (DOJ) to assist the Department of Energy (DOE) in building up cases against 17 power generation companies (gencos) cited for violating energy policies.
According to DOE–Electric Power Industry Management Bureau Director Mario Marasigan, a letter from Cabinet Secretary Karlo Nograles was sent to the agencies concerned.
“We have presented to the Cabinet Assistance System the power outlook and the concerns that we see in the power industry, whereby Cabinet Secretary Karlo Nograles instructed DOJ, PCC and ERC to coordinate with us. We had initial coordination with ERC and PCC while preparing for DOJ,” said Marasigan in a text message.
In April, the DOE said it would refer to the ERC, PCC and DOJ for assistance in enforcement and in building up cases against gencos for their prolonged power plant outages; the grid system operator for not securing enough firm-contracted ancillary reserves (AS); and the distribution utilities (DUs) for not conducting competitive power supply auctions on time.
“We have been working closely with the other enforcement agencies in pursuing options available to us to ensure that unplanned, prolonged, and perhaps even alleged malicious activities of certain players in the energy sector are scrutinized, investigated, and possibly penalized by the ERC, the PCC, and the DOJ,” the DOE said Thursday.
The Energy department, whose chief, Secretary Alfonso Cusi is under fire from senators for having assured them on April 27 there would be no brownouts, also reminded DUs and the system operator of their contracting obligations to address the needed capacity increases for a reliable power system for its consumers.
The Senate Committee on Energy, chaired by Sen. Sherwin Gatchalian, is calling a hearing soon on this week’s spate of power disruptions in Luzon, which Gatchalian said affected 339,000 households in 90 barangays in 60 cities and provinces.
Gatchalian promised to open the inquiry soon after Sen. Manny Pacquiao, in a privilege speech on Wednesday, called out Cusi for “incompetence” and said he cannot pass on the blame simply to private companies as he has command responsibility.
On Thursday, Minority Leader Franklin M. Drilon also rejected what he deemed Cusi’s blame tossing.
Energy Secretary Cusi said he is fully aware of his responsibilities as energy chief and that he has not been remiss in his duties.
“We are aware of our responsibilities and we have been carrying them out,” he said, while lamenting that the criticism “came from partymates,” referring to Pacquiao and Senator Koko Pimentel.
Economic sabotage
Meanwhile, DOE Undersecretary Felix William Fuentebella has said the 17 gencos’ noncompliance with government policies—banning the conduct of maintenance shutdowns in the second quarter, when demand is at peak—is thoroughly being investigated for a possible case of economic sabotage.
For instance, the ERC said 17 gencos breached the maximum allowable unplanned outage days per year.
The 17 gencos are SEM Calaca Power Corp., GN Power Mariveles Coal Plant Ltd., Masinloc Power Partners Co. Ltd., Southwest Luzon Power Generation Corp., Team Sual Corp., SPC Power Corp., Panay Power Corp., SN Aboitiz Power-Benguet Inc. CBK Power Company Ltd., SPC Island Power Corp., First Natgas Power Corp., FGP Corp., First Gas Power Corp., Power Sector Assets and Liabilities Management Corp., Energy Development Corp., Hedcor Bukidnon Inc. and PSALM-Soosan ENS Co. Ltd.
The ERC said 35 units that belong to the 17 gencos have been on prolonged shutdown.
“We are strictly monitoring and reviewing the weekly reports being submitted by the gencos in compliance with our directive pertaining to the Reliability Performance Indices and Equivalent Outage Days Per Year of Generating Units. Based on the examination of our technical group, there are gencos that have breached the maximum allowable unplanned outage days as of April 2021,” ERC Chairman Agnes Devanadera said.
The extended plant outage and power plant derating have resulted in rotational brownouts since Monday, May 31. This even as the DOE assured in April that Luzon will be spared from power outages, saying there is enough supply in the grid.
As of Thursday, the National Grid Corporation of the Philippines (NGCP) projected a total available capacity of 11,601 MW, relative to the projected peak demand of 10,331 MW. This means the Luzon grid is in normal system condition based on NGCP’s advisory issued in the morning.
“There are currently enough power supply reserves to accommodate the projected demand, which has significantly decreased due to adverse weather condition,” said the DOE.
NGCP told to explain
The ERC has also directed the NGCP to explain the causes of delays of 33 transmission projects that were already approved.
“The NGCP’s explanation will shed light on the status and reason/s for the delay of the completion of the 33 transmission projects that we have already approved,” said Devanadera in a statement.
Also, NGCP was directed to comply with the requirement of RA 9136 or the Electric Power Industry Reform Act (Epira) to enter into Ancillary Services (AS) contracts and to update the ERC of the status of its negotiation, if any, of the additional AS, particularly Contingency Reserve (CR).
The NGCP under the Epira, particularly Section 8, in relation to Section 21, has responsibility over the planning, construction and centralized operation and maintenance of its high-voltage transmission facilities, including grid interconnections and Ancillary Services.
The ERC has approved the Ancillary Services Procurement Plan (ASPP) which sets the required level of the AS.
“The completion of the NGCP transmission projects is a crucial element in ensuring the stability of electricity in the entire country. In the same manner, there must be sufficient Ancillary Services Procurement Agreement [ASPA] in place to support the transmission of power capacity and energy from generation sources to consumption loads and maintain the reliable operation of the transmission system,” Devanadera added.
As of December 2020, the DOE said NGCP’s level of firm contracted AS are still way below the requirement of a department circular and the ERC-approved AS Procurement Plan.
The NGCP, for its part, said earlier that the lack of supply hampers the procurement of power reserve.
“If there is no supply provided by generation companies, there is no reserve or there is no ancillary services to be procured,” NGCP counsel for legal and regulatory affairs Ronald Dylan Concepcion told a recent Joint Congressional Energy Commission hearing.
The DOE’s DC2019-12-0018 order mandated NGCP to renegotiate its existing non-firm contracts, as necessary, and comply with the 100-percent firm AS requirement.
DOJ eyes collusion
The Department of Justice (DOJ) willlook into possible collusion among gencos tantamount to economic sabotage following this week’s brownouts.
Justice Secretary Menardo Guevarra told reporters, “We have not received any formal directive from the palace regarding this matter but I will alert the NBI to stand by and prepare to investigate.”
Guevarra’s statement followed DOE’s disclosure that it has presented to the Cabinet Assistance System the power outlook and the concerns that it sees in the power industry.
The DOE earlier said power gencos experiencing prolonged outages on their generation facilities could face anti-competitive behavior and economic sabotage charges for breaching government-enforced laws and policies.
Those likely to be investigated are gencos whose facilities are on extended shutdowns—including those that performed unplanned maintenance that led to rotational brownouts in Luzon.
With Joel R. San Juan and Butch Fernandez
https://businessmirror.com.ph/2021/06/04/3-agencies-to-help-doe-in-gencos-cases/
Malacañang has instructed the Energy Regulatory Commission (ERC), the Philippine Competition Commission (PCC) and the Department of Justice (DOJ) to assist the Department of Energy (DOE) in building up cases against 17 power generation companies (gencos) cited for violating energy policies.
According to DOE–Electric Power Industry Management Bureau Director Mario Marasigan, a letter from Cabinet Secretary Karlo Nograles was sent to the agencies concerned.
“We have presented to the Cabinet Assistance System the power outlook and the concerns that we see in the power industry, whereby Cabinet Secretary Karlo Nograles instructed DOJ, PCC and ERC to coordinate with us. We had initial coordination with ERC and PCC while preparing for DOJ,” said Marasigan in a text message.
In April, the DOE said it would refer to the ERC, PCC and DOJ for assistance in enforcement and in building up cases against gencos for their prolonged power plant outages; the grid system operator for not securing enough firm-contracted ancillary reserves (AS); and the distribution utilities (DUs) for not conducting competitive power supply auctions on time.
“We have been working closely with the other enforcement agencies in pursuing options available to us to ensure that unplanned, prolonged, and perhaps even alleged malicious activities of certain players in the energy sector are scrutinized, investigated, and possibly penalized by the ERC, the PCC, and the DOJ,” the DOE said Thursday.
The Energy department, whose chief, Secretary Alfonso Cusi is under fire from senators for having assured them on April 27 there would be no brownouts, also reminded DUs and the system operator of their contracting obligations to address the needed capacity increases for a reliable power system for its consumers.
The Senate Committee on Energy, chaired by Sen. Sherwin Gatchalian, is calling a hearing soon on this week’s spate of power disruptions in Luzon, which Gatchalian said affected 339,000 households in 90 barangays in 60 cities and provinces.
Gatchalian promised to open the inquiry soon after Sen. Manny Pacquiao, in a privilege speech on Wednesday, called out Cusi for “incompetence” and said he cannot pass on the blame simply to private companies as he has command responsibility.
On Thursday, Minority Leader Franklin M. Drilon also rejected what he deemed Cusi’s blame tossing.
Energy Secretary Cusi said he is fully aware of his responsibilities as energy chief and that he has not been remiss in his duties.
“We are aware of our responsibilities and we have been carrying them out,” he said, while lamenting that the criticism “came from partymates,” referring to Pacquiao and Senator Koko Pimentel.
Economic sabotage
Meanwhile, DOE Undersecretary Felix William Fuentebella has said the 17 gencos’ noncompliance with government policies—banning the conduct of maintenance shutdowns in the second quarter, when demand is at peak—is thoroughly being investigated for a possible case of economic sabotage.
For instance, the ERC said 17 gencos breached the maximum allowable unplanned outage days per year.
The 17 gencos are SEM Calaca Power Corp., GN Power Mariveles Coal Plant Ltd., Masinloc Power Partners Co. Ltd., Southwest Luzon Power Generation Corp., Team Sual Corp., SPC Power Corp., Panay Power Corp., SN Aboitiz Power-Benguet Inc. CBK Power Company Ltd., SPC Island Power Corp., First Natgas Power Corp., FGP Corp., First Gas Power Corp., Power Sector Assets and Liabilities Management Corp., Energy Development Corp., Hedcor Bukidnon Inc. and PSALM-Soosan ENS Co. Ltd.
The ERC said 35 units that belong to the 17 gencos have been on prolonged shutdown.
“We are strictly monitoring and reviewing the weekly reports being submitted by the gencos in compliance with our directive pertaining to the Reliability Performance Indices and Equivalent Outage Days Per Year of Generating Units. Based on the examination of our technical group, there are gencos that have breached the maximum allowable unplanned outage days as of April 2021,” ERC Chairman Agnes Devanadera said.
The extended plant outage and power plant derating have resulted in rotational brownouts since Monday, May 31. This even as the DOE assured in April that Luzon will be spared from power outages, saying there is enough supply in the grid.
As of Thursday, the National Grid Corporation of the Philippines (NGCP) projected a total available capacity of 11,601 MW, relative to the projected peak demand of 10,331 MW. This means the Luzon grid is in normal system condition based on NGCP’s advisory issued in the morning.
“There are currently enough power supply reserves to accommodate the projected demand, which has significantly decreased due to adverse weather condition,” said the DOE.
NGCP told to explain
The ERC has also directed the NGCP to explain the causes of delays of 33 transmission projects that were already approved.
“The NGCP’s explanation will shed light on the status and reason/s for the delay of the completion of the 33 transmission projects that we have already approved,” said Devanadera in a statement.
Also, NGCP was directed to comply with the requirement of RA 9136 or the Electric Power Industry Reform Act (Epira) to enter into Ancillary Services (AS) contracts and to update the ERC of the status of its negotiation, if any, of the additional AS, particularly Contingency Reserve (CR).
The NGCP under the Epira, particularly Section 8, in relation to Section 21, has responsibility over the planning, construction and centralized operation and maintenance of its high-voltage transmission facilities, including grid interconnections and Ancillary Services.
The ERC has approved the Ancillary Services Procurement Plan (ASPP) which sets the required level of the AS.
“The completion of the NGCP transmission projects is a crucial element in ensuring the stability of electricity in the entire country. In the same manner, there must be sufficient Ancillary Services Procurement Agreement [ASPA] in place to support the transmission of power capacity and energy from generation sources to consumption loads and maintain the reliable operation of the transmission system,” Devanadera added.
As of December 2020, the DOE said NGCP’s level of firm contracted AS are still way below the requirement of a department circular and the ERC-approved AS Procurement Plan.
The NGCP, for its part, said earlier that the lack of supply hampers the procurement of power reserve.
“If there is no supply provided by generation companies, there is no reserve or there is no ancillary services to be procured,” NGCP counsel for legal and regulatory affairs Ronald Dylan Concepcion told a recent Joint Congressional Energy Commission hearing.
The DOE’s DC2019-12-0018 order mandated NGCP to renegotiate its existing non-firm contracts, as necessary, and comply with the 100-percent firm AS requirement.
DOJ eyes collusion
The Department of Justice (DOJ) willlook into possible collusion among gencos tantamount to economic sabotage following this week’s brownouts.
Justice Secretary Menardo Guevarra told reporters, “We have not received any formal directive from the palace regarding this matter but I will alert the NBI to stand by and prepare to investigate.”
Guevarra’s statement followed DOE’s disclosure that it has presented to the Cabinet Assistance System the power outlook and the concerns that it sees in the power industry.
The DOE earlier said power gencos experiencing prolonged outages on their generation facilities could face anti-competitive behavior and economic sabotage charges for breaching government-enforced laws and policies.
Those likely to be investigated are gencos whose facilities are on extended shutdowns—including those that performed unplanned maintenance that led to rotational brownouts in Luzon.
With Joel R. San Juan and Butch Fernandez
4 service contracts on oil, gas exploration in WPS pending
by Samuel Medenilla June 4, 2021
https://businessmirror.com.ph/2021/06/04/4-service-contracts-on-oil-gas-exploration-in-wps-pending/
FOUR service contracts for oil and gas exploration in the West Philippine Sea (WPS) are now in the final stages of processing, according to the Department of Energy (DOE).
“As we are talking now, I believe that we have four service contracts that are being processed already and then [will be brought] to Malacañang for President’s signature for award,” Energy Secretary Alfonso Cusi said in an online press briefing on Thursday.
In December, Cusi had reported they received 14 applications for oil and gas exploration in the WPS under their Philippine Conventional Energy Contracting Program (PCECP).
This after President Duterte lifted the moratorium on oil and gas exploration in the WPS in 2020.
This is part of the government’s efforts to seek new energy sources amid the looming depletion of the Malampaya natural gas field, which is the second-biggest source for fuel for the energy production in Luzon.
Cusi said they continue to look for more partners in conducting more exploration in areas within the country’s exclusive economic zone in WPS and territorial seas.
He noted the said activities are expected to push through despite the country’s territorial disputes with China in WPS.
“The said incursions of Chinese Coast Guard vessel [in Philippine waters] is a separate [issue]. It does not interfere [our] exploration,” Cusi said.
The most recent of the incursions happened in early March Julian Felipe Reef (Whitsun Reef) located 175 nautical miles from Bataraza, Palawan. Over 200 boats believed to be maritime militia of China have remained in areas within the Philippines’s exclusive economic zone. The Department of Foreign Affairs (DFA) has been filing daily diplomatic protests against Beijing, as it vowed to do, while the boats remain in the area.
Blueleaf Energy, SunAsia to develop solar projects
By Lenie Lectura June 4, 2021
https://businessmirror.com.ph/2021/06/04/blueleaf-energy-sunasia-to-develop-solar-projects/
Blueleaf Energy, a portfolio company of Macquarie’s Green Investment Group, has partnered with renewable energy (RE) developer SunAsia Energy for the development of 1.25 gigawatts (GW) of solar projects in Luzon.
Blueleaf said the partnership coincides with the forecast growth of the Philippines’s solar energy market. The country targets the delivery of an additional 10 GW of solar energy by 2030, which would comprise in excess of 20 percent of its energy mix.
Over the past 20 years, Blueleaf has developed, built and operated almost 2 GW of solar capacity across the globe, including over 500 MW in the Asia Pacific region and 250 MW in the Philippines.
“We are pleased to partner with SunAsia to drive forward Philippines’s green energy transition. This marks another milestone as we partner with reliable, strategic local developers to expand the solar industry across Asia,” Interim CEO of Blueleaf Energy Sol Proops said in a statement.
The partnership brings together Blueleaf’s financial and technical capabilities and SunAsia’s local development experience.
“With BlueLeaf Energy as our partner, we are in a stronger position today in helping the industry attain the renewable energy targets set by the implementation of the country’s Renewable Portfolio Standards.
This cooperation raises the bar of project development work in the country as the partnership offers the renewable energy market innovative solar solutions that are both viable and appropriate to local conditions,” SunAsia Chief Executive Officer Tetchi Capellan said.
SunAsia Energy has a strong track record in implementing solar energy projects in the Philippines. Since its inception in 2013, the company has worked with partners in delivering clean energy foremost of which is the installation of the Philippines 4th largest solar power plant in Cebu.
It also specializes in innovative solutions holding today an exclusive license to operate the biggest floating solar pilot project in the town of Bay in Laguna Lake.
https://businessmirror.com.ph/2021/06/04/blueleaf-energy-sunasia-to-develop-solar-projects/
Blueleaf Energy, a portfolio company of Macquarie’s Green Investment Group, has partnered with renewable energy (RE) developer SunAsia Energy for the development of 1.25 gigawatts (GW) of solar projects in Luzon.
Blueleaf said the partnership coincides with the forecast growth of the Philippines’s solar energy market. The country targets the delivery of an additional 10 GW of solar energy by 2030, which would comprise in excess of 20 percent of its energy mix.
Over the past 20 years, Blueleaf has developed, built and operated almost 2 GW of solar capacity across the globe, including over 500 MW in the Asia Pacific region and 250 MW in the Philippines.
“We are pleased to partner with SunAsia to drive forward Philippines’s green energy transition. This marks another milestone as we partner with reliable, strategic local developers to expand the solar industry across Asia,” Interim CEO of Blueleaf Energy Sol Proops said in a statement.
The partnership brings together Blueleaf’s financial and technical capabilities and SunAsia’s local development experience.
“With BlueLeaf Energy as our partner, we are in a stronger position today in helping the industry attain the renewable energy targets set by the implementation of the country’s Renewable Portfolio Standards.
This cooperation raises the bar of project development work in the country as the partnership offers the renewable energy market innovative solar solutions that are both viable and appropriate to local conditions,” SunAsia Chief Executive Officer Tetchi Capellan said.
SunAsia Energy has a strong track record in implementing solar energy projects in the Philippines. Since its inception in 2013, the company has worked with partners in delivering clean energy foremost of which is the installation of the Philippines 4th largest solar power plant in Cebu.
It also specializes in innovative solutions holding today an exclusive license to operate the biggest floating solar pilot project in the town of Bay in Laguna Lake.
Govt sets probes onLuzon power outages
By Jordeene B. Lagare June 4, 2021
https://www.manilatimes.net/2021/06/04/business/top-business/govt-sets-probes-onluzon-power-outages/1801888
POWER supply in Luzon is normal for now but it does not mean that the government will stop efforts to go after those liable for the power interruptions that struck the country in the past few days.
During a Palace briefing, Energy Secretary Alfonso Cusi said an investigation is underway to look into "sabotage" allegations following the raising of red and yellow alert notices in the Luzon grid for three straight days.
"Whether or not there is a sabotage resulting in power interruptions, the agency is looking at it," Cusi said in Filipino.
He said the Department of Energy (DoE) has sought the assistance of the Energy Regulatory Commission (ERC) and the Philippine Competition Commission (PCC) on the issue.
On Wednesday, Energy Undersecretary Felix William Fuentebella said the DoE is exploring legal options.
"We are studying if non-compliance with our policies is a crime tantamount to economic sabotage," said Fuentebella in Filipino.during the Laging Handa briefing.
The agency has issued a circular that prohibits power generators from undertaking preventive maintenance every April, May, and June of the year since these are the months where demand is at its highest.
"While the probe is ongoing, we cannot conclude what exactly happened," Cusi said in Filipino.
Cusi has apologized for the successive brownouts that struck the country's largest island this week.
As early as Monday, parts of Metro Manila and adjacent provinces have grappled with rotating brownouts lasting for one to two hours a day.
But Cusi said on Thursday that Luzon has a normal power supply. "As of today, the power supply situation is normal" he said in Filipino.
Citing data from the National Grid Corporation of the Philippines (NGCP), the DoE said the projected available capacity was at 11,601 megawatts (MW) while peak demand was at 10,331 MW.
Data from the Department of Energy (DoE) showed the Luzon grid shed 4,088 MW.
Pagbilao Coal-Fired Power Plant Unit 2, with capacity of 382 MW, is expected to resume normal operations on Sunday.
On the other hand, 316-MW Coal-Fired Power Plant Unit 2 of GNPower Mariveles Energy Center is expected to return to service on June 8 but Unit 1 of the same coal facility is projected to resume operations on August 31.
Units 1 to 3 of San Roque Power Corp.'s Hydroelectric Power Plant, with total capacity of 435 MW, are on its annual planned outage for turbine inspection until June 13.
Meanwhile, 300-MW Sem-Calaca Coal-Fired Power Plant Unit 2 (300 MW) is seen to return to service on July 1.
The Ilijan power plant is still operating at reduced capacity of 716 MW due to the ongoing gas restriction from the Malampaya gas project.
On Wednesday, the ERC directed generation companies (gencos) to explain the unplanned outages that breached the maximum allowable unplanned outage days per year.
These are SEM Calaca Corp.; GNPower Mariveles Coal Plant Ltd.; Masinloc Power Partners Co., Ltd.; Southwest Luzon Power Generation Corp.; Team Sual Corp.; SPC Power Corp.; Panay Power Corp.; SN Aboitiz Power-Benguet, Inc.; CBK Power Co. Ltd.; SPC Island Power Corp.; First Natgas Power Corp.; FGP Corp.; First Gas Power Corp.; Power Sector Assets and Liabilities Management Corp. (Psalm); Energy Development Corp.; Hedcor Bukidnon, Inc.; and Psalm/Soosan ENS Co., Ltd. Philippines.
"We are strictly monitoring and reviewing the weekly reports being submitted by the Generation Companies in compliance with our directive pertaining to the Reliability Performance Indices and Equivalent Outage Days Per Year of Generating Units," ERC Chairman and Chief Executive Officer Agnes Devanadera had said in a statement.
https://www.manilatimes.net/2021/06/04/business/top-business/govt-sets-probes-onluzon-power-outages/1801888
POWER supply in Luzon is normal for now but it does not mean that the government will stop efforts to go after those liable for the power interruptions that struck the country in the past few days.
During a Palace briefing, Energy Secretary Alfonso Cusi said an investigation is underway to look into "sabotage" allegations following the raising of red and yellow alert notices in the Luzon grid for three straight days.
"Whether or not there is a sabotage resulting in power interruptions, the agency is looking at it," Cusi said in Filipino.
He said the Department of Energy (DoE) has sought the assistance of the Energy Regulatory Commission (ERC) and the Philippine Competition Commission (PCC) on the issue.
On Wednesday, Energy Undersecretary Felix William Fuentebella said the DoE is exploring legal options.
"We are studying if non-compliance with our policies is a crime tantamount to economic sabotage," said Fuentebella in Filipino.during the Laging Handa briefing.
The agency has issued a circular that prohibits power generators from undertaking preventive maintenance every April, May, and June of the year since these are the months where demand is at its highest.
"While the probe is ongoing, we cannot conclude what exactly happened," Cusi said in Filipino.
Cusi has apologized for the successive brownouts that struck the country's largest island this week.
As early as Monday, parts of Metro Manila and adjacent provinces have grappled with rotating brownouts lasting for one to two hours a day.
But Cusi said on Thursday that Luzon has a normal power supply. "As of today, the power supply situation is normal" he said in Filipino.
Citing data from the National Grid Corporation of the Philippines (NGCP), the DoE said the projected available capacity was at 11,601 megawatts (MW) while peak demand was at 10,331 MW.
Data from the Department of Energy (DoE) showed the Luzon grid shed 4,088 MW.
Pagbilao Coal-Fired Power Plant Unit 2, with capacity of 382 MW, is expected to resume normal operations on Sunday.
On the other hand, 316-MW Coal-Fired Power Plant Unit 2 of GNPower Mariveles Energy Center is expected to return to service on June 8 but Unit 1 of the same coal facility is projected to resume operations on August 31.
Units 1 to 3 of San Roque Power Corp.'s Hydroelectric Power Plant, with total capacity of 435 MW, are on its annual planned outage for turbine inspection until June 13.
Meanwhile, 300-MW Sem-Calaca Coal-Fired Power Plant Unit 2 (300 MW) is seen to return to service on July 1.
The Ilijan power plant is still operating at reduced capacity of 716 MW due to the ongoing gas restriction from the Malampaya gas project.
On Wednesday, the ERC directed generation companies (gencos) to explain the unplanned outages that breached the maximum allowable unplanned outage days per year.
These are SEM Calaca Corp.; GNPower Mariveles Coal Plant Ltd.; Masinloc Power Partners Co., Ltd.; Southwest Luzon Power Generation Corp.; Team Sual Corp.; SPC Power Corp.; Panay Power Corp.; SN Aboitiz Power-Benguet, Inc.; CBK Power Co. Ltd.; SPC Island Power Corp.; First Natgas Power Corp.; FGP Corp.; First Gas Power Corp.; Power Sector Assets and Liabilities Management Corp. (Psalm); Energy Development Corp.; Hedcor Bukidnon, Inc.; and Psalm/Soosan ENS Co., Ltd. Philippines.
"We are strictly monitoring and reviewing the weekly reports being submitted by the Generation Companies in compliance with our directive pertaining to the Reliability Performance Indices and Equivalent Outage Days Per Year of Generating Units," ERC Chairman and Chief Executive Officer Agnes Devanadera had said in a statement.
Senate, House To Probe Power Outages; Energy Chief Apologizes
Alexis Romero, Cecille Suerte Felipe, Delon Porcalla Friday, June 4, 2021
https://www.onenews.ph/senate-house-to-probe-power-outages-energy-chief-apologizes
Lawmakers from both the Senate and the House of Representatives will conduct separate investigations into the rotational blackouts that hit several areas in Luzon in the past days.
This developed as Energy Secretary Alfonso Cusi apologized on Thursday, June 3, for the power outages and assured the public that the government is working to ensure enough electricity supply.
Sen. Sherwin Gatchalian filed Resolution No. 740 seeking to conduct the inquiry in the hope of providing a long-term solution to electricity supply shortages, especially during summer.
He noted that 339,000 households from 90 barangays in 16 local government units lost power on June 1. Even two vaccination centers in Valenzuela City, where Gatchalian hails from, experienced power interruption.
“This is a critical situation and I would like to request the Department of Energy (DOE) to get all hands on deck especially in the coming days because from the forecast that I am seeing, there will be problem of load dropping in the next eight days,” said Gatchalian, Senate energy committee chairperson, during Wednesday’s plenary session.
The DOE is reportedly gathering evidence and considering the filing charges of economic sabotage against those that violated a policy banning the conduct of preventive maintenance from April to June, when demand for electricity is high.
Sen. Francis Pangilinan, however, asked the DOE of its basis to lodge a complaint against power plants, saying the allegations were serious.
Gatchalian said the plan to file economic sabotage charges is also important to compel the generation companies to improve their operations. He, however, said “this is a reactive move and it will not solve” the current blackouts being experienced.
“DOE should have anticipated the worst-case scenario earlier on and put in place contingency measures,” Gatchalian said, adding that “this is not an isolated case” as every summer, the threat of debilitating blackouts is real.
“The Senate is ready to work with DOE and ERC (Energy Regulatory Commission) in looking of permanent solutions to this perennial problem,” Gatchalian noted.
In filing Senate the resolution, Gatchalian underscored the role of the DOE in ensuring the quality, reliability, security, and affordability of electric power supply in the country. He stressed that it is crucial to hold DOE to account for its failure to address power supply shortages since 2016.
Gatchalian said the DOE even gave assurances during the energy committee’s hearing on April 27 that there would be supply shortage during summer, yet some areas in Luzon experienced rotational brownouts on May 31 and June 1 “due to red alerts.”
The senator added it is crucial for the DOE to provide long-term solutions to this problem and a specific timeline for plans, “to include the hastening of the build-out of new power plants, aggressively utilizing energy efficiency and conservation, and contracting sufficient ancillary reserves.”
“All these things are necessary to protect the public and the economy from losses due to power outages and the resulting high prices of electricity due to limited power supply,” Gatchalian said.
Considering that the issue has been a recurring problem in the past five years, it’s high time that long-term solutions be finally put in place, he stressed.
Senate Minority Leader Franklin Drilon said the DOE is shifting the blame to private power companies for its failure to avert power outages.
“It’s disappointing. Blame everyone except yourself. Where is accountability?” Drilon asked. “Blame-shifting won’t solve the power crisis.”
Drilon expressed support for a Senate investigation into the matter “in aid of legislation.”
Rep. Juan Miguel Arroyo, House committee on energy chairman, said the body would conduct on its own initiative (motu proprio) an inquiry today regarding the reported rotational blackouts.
“We cannot afford to have these rotational (blackouts) at this point in time when we are expecting the anti-COVID-19 vaccine rollout to go on full blast in the coming days. We all know that the vaccines need to be stored in cold storage otherwise they’ll just go to waste and that will be a major setback for us in our fight against this dreaded virus,” Arroyo stated.
The inquiry, he said, is aimed at threshing out the cause of power shortage and coming up with recommendations to resolve the situation.
Quezon City Rep. Precious Hipolito-Castelo lamented that the blackouts “are happening despite the DOE assurance during the hearing of the Joint Congressional Power Commission that it does not see any demand-driven energy shortage during the summer season.”
Cusi apologizes
Cusi, for his part, said the island’s power supply was affected by the simultaneous breakdown of four large power plants with a total capacity of 2,017 megawatts.
“So we have a normal supply today and I apologize for the last two days when we had rotating (blackouts),” the energy chief told a press briefing.
He explained that the summer heat hiked the demand to more than 11,000 megawatts and that some power plants have not resumed normal operations, although efforts are already underway to address the issue.
“We still have 1,372 megawatts capacity, four plants that are still down. We are working on how they can resume their operations immediately,” Cusi said in Filipino.
He also said that he asked the help of the ERC and the Philippine Competition Commission to look into allegations that the problem was caused by sabotage. “While the investigation is not yet finished, we cannot say what really happened.”
On Wednesday, June 2, the National Grid Corp. of the Philippines placed the Luzon grid under red alert for hours because of insufficient power supply in the grid.
But Cusi said that as of Thursday, the power supply is more than sufficient to meet the projected demand, pointing out that projected peak demand was at 10,300 megawatts – lower than the 11,600 megawatts of supply.
He added that several plants are under construction or are ready to be commissioned.
“So you can be assured that there are enough supplies as far as policy and construction are concerned. The public can be assured that your DOE, this government is on top of these things,” he stressed.
DOE duties not neglected
As vice chairman of the ruling Partido Demokratiko Pilipino-Lakas ng Bayan (PDP-Laban), Cusi denied that he is prioritizing politics over his duties in the energy department.
“The power plants broke down and it happened while we have a meeting in Cebu. But it doesn’t mean I am neglecting it (duties as energy secretary) because I’m not the only guy (who) is running DOE (Department of Energy) and I trust my team. I trust the DOE people addressing the situation. Besides, the policies have been laid out already, it’s just that this is a question of enforcement,” he said.
Asked to react to Sen. Manny Pacquiao’s statement that Cusi was incompetent and would fire him over the power interruptions if he were President Duterte, the energy chief replied: “Well, just like the other secretaries, we serve at the pleasure of the President.”
Pacquiao, acting president of PDP-Laban, claimed that the assembly led by Cusi in Cebu was unauthorized because any call for a meeting must be approved by both the chairman and the president.
Presidential spokesman Harry Roque has said Duterte himself had ordered Cusi to preside over the meeting. – With Danessa Rivera, Evelyn Macairan
Subscribe to:
Posts (Atom)