Danessa Rivera - The Philippine Star September 3, 2021 | 12:00am
https://www.philstar.com/business/2021/09/03/2124392/philippines-needs-transition-plan-coal-assets-says-dof
MANILA, Philippines — The Philippines is still not ready to implement carbon tax until government works out a transition plan for coal assets to usher in more renewable energy (RE) investments and ensure power supply and cost requirements of the country are met.
There is a need for the country to balance its transition and power capacity needs amid the global push to cut carbon emissions and pursue clean energy, Department of Finance (DOF) Assistant Secretary Paola Alvarez said during the Energy Smart Forum organized by the European Chamber of Commerce of the Philippines (ECCP) on Tuesday.
“From our end, it is a balance so we cannot go ahead with the coal transition mechanism without securing investment towards RE. That is how we want to secure or guarantee that during the transition, our economic progress would still continue,” she said.
Last year, the Department of Energy (DOE) issued a moratorium on new coal plants as it recognized the need for the country to shift to a more flexible power supply mix.
“What we do not want is a scenario that you give a moratorium on coal but you do not provide policies or foundational policies to help the environment become conducive to investments. We want to leverage sustainable finance in the international calls in talks to Glasgow towards green finance,” Alvarez said.
On the coal transition, Alvarez said the DOF is working with the ADB to properly transition coal assets and, at the same time, “ usher in investments first in terms of RE in order for the DOE to be comfortable in terms of energy resources of the country.”
She said the DOF and the DOE have been studying on how to put carbon pricing instruments.
“However, given that they have concerns on the security of energy resources, we cannot put those in place as of the moment,” the DOF official said.
Last March, Energy Secretary Alfonso Cusi said the Philippines is not ready for carbon tax as this will make the country uncompetitive in terms of power rates. Moreover, the country is still building up capacity by developing indigenous resources to establish energy security.
In May, the World Bank said the imposition of a carbon tax in the Philippines would help the cash-strapped government secure additional revenue needed to recover from the pandemic and address long-term risks of climate change.
But the Washington-based multilateral financing institution also said a carbon tax may not always be the best and most preferred choice considering some cases like the Philippines where power rates are among the costliest in the region, thereby reducing the country’s overall competitiveness.
But carbon pricing or carbon tax is inevitable given the global transition away from coal, said Joseph Incalceterra, chief ASEAN economist at British banking giant HSBC.
Friday, September 3, 2021
AC Energy eyes $400M from green bonds
By Jordeene B. Lagare September 3, 2021
https://www.manilatimes.net/2021/09/03/business/top-business/ac-energy-eyes-400m-from-green-bonds/1813313
AC Energy Corp. said on Thursday it is targeting to raise $400 million from the issuance of fixed-for-life green bonds to fund its renewable energy projects.
In a disclosure, AC Energy said its wholly-owned subsidiary ACEN Finance Ltd. has successfully set the terms of its US dollar-denominated senior guaranteed undated fixed-for-life (non-deferrable) green bonds.
The green bonds will be issued under its $1.5-billion medium-term note program and be listed on the Singapore Exchange Securities Trading platform.
It has a fixed coupon of 4 percent for life with no step-up and no reset, priced at par.
According to AC Energy, pricing for the bonds was at 4 percent, which was 45 basis points tighter than the initial price guidance.
The final order book volume exceeded $2 billion, attracting a wide range of high-quality investors, it added.
"We are delighted by the overwhelming support for ACEN's green bond offering. This helps accelerate our aggressive renewables expansion and enables the green-led recovery," said AC Energy President and Chief Executive Officer Eric Francia.
"This is another landmark deal that demonstrates strong investor confidence in the Company's strategic thrust to be a forerunner in the renewable energy sector and sustainable investing," said AC Energy Chief Finance Officer Cora Dizon.
Net proceeds from the green bond issuance will be used to finance or refinance new or existing eligible green projects, in accordance with the company's Green Bond Framework.
This framework sets out well-defined guidelines for the use of proceeds for renewable projects, located here and abroad, with comprehensive monitoring and reporting commitments.
BPI Capital Corp. is the sole global coordinator for the transaction, while BPI Capital, Credit Suisse (Singapore) Ltd., Deutsche Bank AG Singapore Branch, Goldman Sachs (Singapore) Pte., Morgan Stanley Asia (Singapore) Pte., and UBS AG Singapore Branch are the joint lead managers and joint bookrunners.
China Bank Capital Corp., First Metro Investment Corp., PNB Capital and Investment Corp., and RCBC Capital Corp. acted as domestic lead managers in the bond issuance.
Earlier, the Securities and Exchange Commission confirmed the bonds comply with requirements under the Asean Green Bonds Circular and qualify as an Asean Green Bond Issuance.
AC Energy has attributable capacity of 2,600 megawatts (MW) in the Philippines, Vietnam, Indonesia, India and Australia.
It aspires to be the largest listed renewables platform in Southeast Asia, with a goal of reaching 5,000 MW of renewables capacity by 2025.
https://www.manilatimes.net/2021/09/03/business/top-business/ac-energy-eyes-400m-from-green-bonds/1813313
AC Energy Corp. said on Thursday it is targeting to raise $400 million from the issuance of fixed-for-life green bonds to fund its renewable energy projects.
In a disclosure, AC Energy said its wholly-owned subsidiary ACEN Finance Ltd. has successfully set the terms of its US dollar-denominated senior guaranteed undated fixed-for-life (non-deferrable) green bonds.
The green bonds will be issued under its $1.5-billion medium-term note program and be listed on the Singapore Exchange Securities Trading platform.
It has a fixed coupon of 4 percent for life with no step-up and no reset, priced at par.
According to AC Energy, pricing for the bonds was at 4 percent, which was 45 basis points tighter than the initial price guidance.
The final order book volume exceeded $2 billion, attracting a wide range of high-quality investors, it added.
"We are delighted by the overwhelming support for ACEN's green bond offering. This helps accelerate our aggressive renewables expansion and enables the green-led recovery," said AC Energy President and Chief Executive Officer Eric Francia.
"This is another landmark deal that demonstrates strong investor confidence in the Company's strategic thrust to be a forerunner in the renewable energy sector and sustainable investing," said AC Energy Chief Finance Officer Cora Dizon.
Net proceeds from the green bond issuance will be used to finance or refinance new or existing eligible green projects, in accordance with the company's Green Bond Framework.
This framework sets out well-defined guidelines for the use of proceeds for renewable projects, located here and abroad, with comprehensive monitoring and reporting commitments.
BPI Capital Corp. is the sole global coordinator for the transaction, while BPI Capital, Credit Suisse (Singapore) Ltd., Deutsche Bank AG Singapore Branch, Goldman Sachs (Singapore) Pte., Morgan Stanley Asia (Singapore) Pte., and UBS AG Singapore Branch are the joint lead managers and joint bookrunners.
China Bank Capital Corp., First Metro Investment Corp., PNB Capital and Investment Corp., and RCBC Capital Corp. acted as domestic lead managers in the bond issuance.
Earlier, the Securities and Exchange Commission confirmed the bonds comply with requirements under the Asean Green Bonds Circular and qualify as an Asean Green Bond Issuance.
AC Energy has attributable capacity of 2,600 megawatts (MW) in the Philippines, Vietnam, Indonesia, India and Australia.
It aspires to be the largest listed renewables platform in Southeast Asia, with a goal of reaching 5,000 MW of renewables capacity by 2025.
ERC completes scrutiny of 8 power generation firms
by Lenie Lectura September 2, 2021
https://businessmirror.com.ph/2021/09/02/erc-completes-scrutiny-of-8-power-generation-firms/
The Energy Regulatory Commission (ERC) has concluded its probe on eight power generation companies (gencos) that were found to have breached their plant outage allowance, causing the unscheduled brownouts from May 31 to June 3.
“We are done with about eight. We have finalized evaluation of the facts. We are now in the last phase of computing penalties,” ERC Chairperson Agnes Devanadera told congressmen during a hearing on the presentation of the agency’s budget for 2022.
She did not identify the eight gencos. The ERC will release its final resolution “within the next two weeks.”
“We went through the process of requiring them to explain and to submit their explanations. In general, most of these explanations dealt on the pandemic related issues like inability of technical people to come in and delay in the delivery of the spare parts because of the lockdown. But we are resolving the cases one by one, not in lump sum,” the ERC chief said.
The ERC said there were 17 gencos cited in its probe, following the show-cause orders issued last June 22.
The ERC is also looking into the possible collusion among the gencos whose facilities were on extended shutdown—including those that performed unplanned maintenance that led to rotational brownouts in Luzon.
The Department of Energy (DOE) earlier said gencos that reported prolonged plant outages could face charges of anti-competitive behavior and economic sabotage for violating government-enforced laws and policies.
Gencos, except for those operating hydroelectric power plants, are not allowed by the DOE to conduct power plant maintenance during the peak quarter. Also, the ERC has put in place a cap on annual unplanned outages per generating plant technology to promote accountability.
All 17 gencos earlier found to have plant outage allowance breaches submitted their explanation to the ERC last July.
The 17 gencos are Sem Calaca Power Corp., GN Power Mariveles Center Ltd. Co., 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., Energy Development Corp., Hedcor Bukidnon Inc.; and PSALM-Soosan ENS Co. Ltd.
https://businessmirror.com.ph/2021/09/02/erc-completes-scrutiny-of-8-power-generation-firms/
The Energy Regulatory Commission (ERC) has concluded its probe on eight power generation companies (gencos) that were found to have breached their plant outage allowance, causing the unscheduled brownouts from May 31 to June 3.
“We are done with about eight. We have finalized evaluation of the facts. We are now in the last phase of computing penalties,” ERC Chairperson Agnes Devanadera told congressmen during a hearing on the presentation of the agency’s budget for 2022.
She did not identify the eight gencos. The ERC will release its final resolution “within the next two weeks.”
“We went through the process of requiring them to explain and to submit their explanations. In general, most of these explanations dealt on the pandemic related issues like inability of technical people to come in and delay in the delivery of the spare parts because of the lockdown. But we are resolving the cases one by one, not in lump sum,” the ERC chief said.
The ERC said there were 17 gencos cited in its probe, following the show-cause orders issued last June 22.
The ERC is also looking into the possible collusion among the gencos whose facilities were on extended shutdown—including those that performed unplanned maintenance that led to rotational brownouts in Luzon.
The Department of Energy (DOE) earlier said gencos that reported prolonged plant outages could face charges of anti-competitive behavior and economic sabotage for violating government-enforced laws and policies.
Gencos, except for those operating hydroelectric power plants, are not allowed by the DOE to conduct power plant maintenance during the peak quarter. Also, the ERC has put in place a cap on annual unplanned outages per generating plant technology to promote accountability.
All 17 gencos earlier found to have plant outage allowance breaches submitted their explanation to the ERC last July.
The 17 gencos are Sem Calaca Power Corp., GN Power Mariveles Center Ltd. Co., 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., Energy Development Corp., Hedcor Bukidnon Inc.; and PSALM-Soosan ENS Co. Ltd.
‘PHL needs more transmission facilities’
By Lenie Lectura September 2, 2021
https://businessmirror.com.ph/2021/09/02/phl-needs-more-transmission-facilities/
Renewable energy (RE) players said transmission line constraint is one of the possible hindrances to achieving the country’s target RE capacity in the next 20 years.
The country is targeting a 35-percent RE share in the country’s energy mix by 2035 and at least a 40-percent RE share by 2040. The current mix is still dominated by fossil fuels at 54.6 percent; natural gas, 21.2 percent; RE, 20.8 percent; and oil-based fuel, 3.5 percent.
The National Renewable Energy Board (NREB), the advisory body tasked to effectively implement RE projects in the country, is confident that the RE share in the energy mix can even hit 50 percent by 2040.
“I’m grateful for in the openness of everyone in this industry to work out our differences and then agreeing to a common goal—a north star. That North Star for the Philippine energy mix is to have a 35-percent RE share by 2030 and, at least, 40 percent RE share by 2040.
In fact, in the NREP [National Renewable Energy Program] projection, we will get to that 35 percent RE share by 2030 and, in fact, exceed 40 percent and get all the way up to 50 percent by 2040 if there are certain policies that will be adopted to make sure that we get there,” said NREB Chairman Monalisa Dimalanta during a forum titled “The Future Energy Show Philippines” in which she talked about RE adoption in the country.
One way to achieve this, she said, is to increase RE installations under the Renewable Portfolio Standards (RPS) policy. “In the public consultation that the DOE had two days ago, it already announced that some of these policies that we had recommended, they are adopting these policies. The first one, which is key, is really the increase in RPS percentage from 1 percent to 2.52 percent by 2023.”
RPS is a market-based policy that requires power distribution utilities, electric cooperatives, and retail electricity supplies to source an agreed portion of their energy supply from eligible RE facilities.
Solar and wind will form part of the majority of new capacity additions in the market share of RE.
When RE players were asked how they are preparing to meet the projected RE numbers, Solar Philippines founder Leandro Leviste cited concerns over the lack of transmission facilities.
“The balance of this 35 percent by 2030 is necessarily going to come mostly from solar and perhaps to the extent there are very good competitive wind resources as well. But I think it’s going to be a challenge of getting that supply to be delivered rather than for the demand of 35 percent being met,” said Leviste during the virtual forum. “It’s going to be a constraint of transmission for the most part rather than cost.”
Leviste said solar cost has gone down to about P3 per kilowatt hour (kWh). “It’s public knowledge that solar is now being supplied to Meralco [Manila Electric Co.] as low as P2.99/kwh and to the extent that is replicable. Therefore, anyone can draw the conclusion that solar should represent a very big share of the country’s energy mix and perhaps all of the incremental capacity that is competitively bid out.”
Leviste said there will not be enough transmission facilities for the 20,000 to 30,000 megawatts of additional solar and wind capacities.
“If there are developers that can see that there is this firm demand of five, six, seven to eight years from now then it becomes all the more viable to develop very long transmission lines that can enable these larger developments to unlock these potential developments for solar and wind,” he said.
SN Aboitiz Power Group Vice President and Chief Business Development Officer Jason Soberano also recognized the importance of transmission lines in delivering power to consumers and that the cost of RE, as well as battery energy storage system, will further go down.
“We do anticipate that the RE and battery energy storage cost will drop further in the coming years and from a commercial standpoint the lower cost per kilowatt hour over the long term justifies the transition to RE.”
You have capacities as part of that equation, but you also have transmission line constraints, the regulation, and you need to have the digital technology to sort of tie up all of these together. So, we’re going there, we see it’s going to be a combination of different technologies,” he said.
https://businessmirror.com.ph/2021/09/02/phl-needs-more-transmission-facilities/
Renewable energy (RE) players said transmission line constraint is one of the possible hindrances to achieving the country’s target RE capacity in the next 20 years.
The country is targeting a 35-percent RE share in the country’s energy mix by 2035 and at least a 40-percent RE share by 2040. The current mix is still dominated by fossil fuels at 54.6 percent; natural gas, 21.2 percent; RE, 20.8 percent; and oil-based fuel, 3.5 percent.
The National Renewable Energy Board (NREB), the advisory body tasked to effectively implement RE projects in the country, is confident that the RE share in the energy mix can even hit 50 percent by 2040.
“I’m grateful for in the openness of everyone in this industry to work out our differences and then agreeing to a common goal—a north star. That North Star for the Philippine energy mix is to have a 35-percent RE share by 2030 and, at least, 40 percent RE share by 2040.
In fact, in the NREP [National Renewable Energy Program] projection, we will get to that 35 percent RE share by 2030 and, in fact, exceed 40 percent and get all the way up to 50 percent by 2040 if there are certain policies that will be adopted to make sure that we get there,” said NREB Chairman Monalisa Dimalanta during a forum titled “The Future Energy Show Philippines” in which she talked about RE adoption in the country.
One way to achieve this, she said, is to increase RE installations under the Renewable Portfolio Standards (RPS) policy. “In the public consultation that the DOE had two days ago, it already announced that some of these policies that we had recommended, they are adopting these policies. The first one, which is key, is really the increase in RPS percentage from 1 percent to 2.52 percent by 2023.”
RPS is a market-based policy that requires power distribution utilities, electric cooperatives, and retail electricity supplies to source an agreed portion of their energy supply from eligible RE facilities.
Solar and wind will form part of the majority of new capacity additions in the market share of RE.
When RE players were asked how they are preparing to meet the projected RE numbers, Solar Philippines founder Leandro Leviste cited concerns over the lack of transmission facilities.
“The balance of this 35 percent by 2030 is necessarily going to come mostly from solar and perhaps to the extent there are very good competitive wind resources as well. But I think it’s going to be a challenge of getting that supply to be delivered rather than for the demand of 35 percent being met,” said Leviste during the virtual forum. “It’s going to be a constraint of transmission for the most part rather than cost.”
Leviste said solar cost has gone down to about P3 per kilowatt hour (kWh). “It’s public knowledge that solar is now being supplied to Meralco [Manila Electric Co.] as low as P2.99/kwh and to the extent that is replicable. Therefore, anyone can draw the conclusion that solar should represent a very big share of the country’s energy mix and perhaps all of the incremental capacity that is competitively bid out.”
Leviste said there will not be enough transmission facilities for the 20,000 to 30,000 megawatts of additional solar and wind capacities.
“If there are developers that can see that there is this firm demand of five, six, seven to eight years from now then it becomes all the more viable to develop very long transmission lines that can enable these larger developments to unlock these potential developments for solar and wind,” he said.
SN Aboitiz Power Group Vice President and Chief Business Development Officer Jason Soberano also recognized the importance of transmission lines in delivering power to consumers and that the cost of RE, as well as battery energy storage system, will further go down.
“We do anticipate that the RE and battery energy storage cost will drop further in the coming years and from a commercial standpoint the lower cost per kilowatt hour over the long term justifies the transition to RE.”
You have capacities as part of that equation, but you also have transmission line constraints, the regulation, and you need to have the digital technology to sort of tie up all of these together. So, we’re going there, we see it’s going to be a combination of different technologies,” he said.
Semirara Mining remits P1.7-B royalty payment
By Jordeene B. Lagare September 1, 2021
https://www.manilatimes.net/2021/09/01/business/top-business/semirara-mining-remits-p17-b-royalty-payment/1813043
Semirara Mining and Power Corp. remitted close to P1.7 billion in royalty payment to the Department of Energy for the second quarter.
In a disclosure on Tuesday, the Consunji-led company it managed to make a record high quarterly payment after recognizing P14.8 billion in revenues on the back of all-time high coal sales and higher average selling prices.
Of the total amount, more than P1 billion will be retained by the national government.
In accordance with the law, the rest will go to the host local government units of the SMPC mine site.
The province of Antique will receive P136 million while the municipality of Caluya and Barangay Semirara will receive around P300 million and P230 million, respectively.
As per Republic Act 7160 or the Local Government Code of 1991, local government units are entitled to a 40-percent share of royalty proceeds from petroleum, coal, geothermal, hydrothermal and wind resources.
"The pandemic has taken a significant toll on our country. We hope that our contribution can help boost our government's response against Covid-19," said Semirara Mining President and Chief Operating Officer Maria Cristina Gotianun.
Semirara Mining is the only vertically-integrated power producer in the country that mines its own fuel.
The integrated energy company also supplies affordable fuel to power plants, cement factories and other industrial facilities across the Philippines.
Shares of Semirara Mining climbed by 46 centavos or 2.79 percent to close at P16.96 each on Tuesday.
https://www.manilatimes.net/2021/09/01/business/top-business/semirara-mining-remits-p17-b-royalty-payment/1813043
Semirara Mining and Power Corp. remitted close to P1.7 billion in royalty payment to the Department of Energy for the second quarter.
In a disclosure on Tuesday, the Consunji-led company it managed to make a record high quarterly payment after recognizing P14.8 billion in revenues on the back of all-time high coal sales and higher average selling prices.
Of the total amount, more than P1 billion will be retained by the national government.
In accordance with the law, the rest will go to the host local government units of the SMPC mine site.
The province of Antique will receive P136 million while the municipality of Caluya and Barangay Semirara will receive around P300 million and P230 million, respectively.
As per Republic Act 7160 or the Local Government Code of 1991, local government units are entitled to a 40-percent share of royalty proceeds from petroleum, coal, geothermal, hydrothermal and wind resources.
"The pandemic has taken a significant toll on our country. We hope that our contribution can help boost our government's response against Covid-19," said Semirara Mining President and Chief Operating Officer Maria Cristina Gotianun.
Semirara Mining is the only vertically-integrated power producer in the country that mines its own fuel.
The integrated energy company also supplies affordable fuel to power plants, cement factories and other industrial facilities across the Philippines.
Shares of Semirara Mining climbed by 46 centavos or 2.79 percent to close at P16.96 each on Tuesday.
First Gen’s Avion unit goes offline after turbine damage
September 1, 2021 | 12:10 am
https://www.bworldonline.com/first-gens-avion-unit-goes-offline-after-turbine-damage/
LOPEZ-LED First Gen Corp. told the local bourse on Tuesday that the second unit of its 97-megawatt (MW) Avion gas-fired plant will be offline for the time being due to damage found in its gas turbine.
Its subsidiary Prime Meridian PowerGen Corp. (PMPC) informed the listed power firm that one of the compressors of Avion Unit 2’s gas turbine was discovered in a routine inspection to have been damaged.
The Batangas-based Avion plant, which uses dual fuel aero-derivative gas turbines developed by General Electric (GE), is one of the gas facilities that source fuel from the offshore Malampaya gas field.
“The damage to Avion Unit 2, which has a capacity of approximately 48.5 MW, was found during an ongoing routine inspection. After carefully reviewing the findings, GE has advised PMPC that Avion Unit 2 cannot be operated and will require further offsite assessment at a GE service depot abroad to determine the extent of the damage and effect repairs necessary to place the gas turbine back into service,” First Gen said.
It added that Avion Unit 1 is unaffected, indicating that it will stay online.
First Gen earlier said that some 50 MW from Avion, which can operate on either natural gas or diesel, will be available for the Luzon grid during the Malampaya gas-to-power project’s temporary closure from Oct. 2 to 22. It will be operating on liquid fuel during the gas field’s shutdown.
In a separate filing on Tuesday, the company said that it had received the tender offer report from Philippines Clean Energy Holding Inc. (PCEHI), which plans to acquire by way of a secondary sale a minimum of issued and outstanding common shares representing 3%, and a maximum of 5.7% from the Lopez firm’s existing shareholders.
The shares will be priced at P33 per common share.
“The tender offer provides existing shareholders of the company the opportunity to sell their common shares and realize their investment, in cash, at a premium to the current trading price of the common shares,” the report read.
The tender offer will begin at 9:00 a.m. on Sept. 1 and end at 12:00 noon of Sept. 29. The offer period may be extended as long as it gets prior approval from the corporate regulator.
In another disclosure, First Gen requested for a one-day extension of its trading suspension, after receiving PCEHI’s 59-page tender offer in order to “give the company’s shareholders equal access to the said report.”
First Gen has 3,495 MW of installed capacity in its portfolio, which comprises of projects in natural gas, geothermal energy from steam, hydro-electric, wind, and solar power. The listed power firm is a subsidiary of First Philippine Holdings Corp. — Angelica Y. Yang
https://www.bworldonline.com/first-gens-avion-unit-goes-offline-after-turbine-damage/
LOPEZ-LED First Gen Corp. told the local bourse on Tuesday that the second unit of its 97-megawatt (MW) Avion gas-fired plant will be offline for the time being due to damage found in its gas turbine.
Its subsidiary Prime Meridian PowerGen Corp. (PMPC) informed the listed power firm that one of the compressors of Avion Unit 2’s gas turbine was discovered in a routine inspection to have been damaged.
The Batangas-based Avion plant, which uses dual fuel aero-derivative gas turbines developed by General Electric (GE), is one of the gas facilities that source fuel from the offshore Malampaya gas field.
“The damage to Avion Unit 2, which has a capacity of approximately 48.5 MW, was found during an ongoing routine inspection. After carefully reviewing the findings, GE has advised PMPC that Avion Unit 2 cannot be operated and will require further offsite assessment at a GE service depot abroad to determine the extent of the damage and effect repairs necessary to place the gas turbine back into service,” First Gen said.
It added that Avion Unit 1 is unaffected, indicating that it will stay online.
First Gen earlier said that some 50 MW from Avion, which can operate on either natural gas or diesel, will be available for the Luzon grid during the Malampaya gas-to-power project’s temporary closure from Oct. 2 to 22. It will be operating on liquid fuel during the gas field’s shutdown.
In a separate filing on Tuesday, the company said that it had received the tender offer report from Philippines Clean Energy Holding Inc. (PCEHI), which plans to acquire by way of a secondary sale a minimum of issued and outstanding common shares representing 3%, and a maximum of 5.7% from the Lopez firm’s existing shareholders.
The shares will be priced at P33 per common share.
“The tender offer provides existing shareholders of the company the opportunity to sell their common shares and realize their investment, in cash, at a premium to the current trading price of the common shares,” the report read.
The tender offer will begin at 9:00 a.m. on Sept. 1 and end at 12:00 noon of Sept. 29. The offer period may be extended as long as it gets prior approval from the corporate regulator.
In another disclosure, First Gen requested for a one-day extension of its trading suspension, after receiving PCEHI’s 59-page tender offer in order to “give the company’s shareholders equal access to the said report.”
First Gen has 3,495 MW of installed capacity in its portfolio, which comprises of projects in natural gas, geothermal energy from steam, hydro-electric, wind, and solar power. The listed power firm is a subsidiary of First Philippine Holdings Corp. — Angelica Y. Yang
LPG prices up by P0.65/kg
Published September 1, 2021, 10:53 AM by Myrna M. Velasco
https://mb.com.ph/2021/09/01/lpg-prices-up-by-p0-65-kg/
Household budget for cooking fuel will rise this month, as the price of liquefied petroleum gas (LPG) has been increased by P0.64 to P0.65 per kilogram (kg) effective today, September 1, or aggregate P7.04 to P7.15 price hike for the standard 11-kilogram cylinder.
As of press time, the LPG firms that already sent notices on their prices include Petron Corporation for its Gasul brand; Phoenix Petroleum for its Super LPG; and Isla Gas for its Solane LPG.
Petron and Phoenix Petroleum implemented a price hike of P0.65 per kg while Solane had a slightly lower adjustment of P0.64 per kg. All price increases enforced by the oil companies are inclusive of value added tax (VAT) charges.
Auto LPG products, alternative fuels being used by the transport sector, were also increased. Petron raised its price by P0.36 per liter and Phoenix Petroleum effected a lower P0.35 per liter hike. LPG companies emphasized that this month’s uptrend in LPG prices had been due to the escalation of contract prices in the world market.
Based on a monitoring report of the Department of Energy (DOE), the pick-up price of LPG products at Metro Manila retail outlets prior to this adjustment had been at the range of P691.00 to P997.00 for the typical 11-kilogram tank.
LPG prices are adjusted every first day of the month – and such cost swing is anchored on Saudi Aramco contract prices, which is the pricing benchmark for Asian markets.
As noted by experts, the climb in contract prices for the propane and butane components of LPG had been attributed to rising demand, as some countries are already building up inventories for their heating requirements in the winter season.
Freight cost and the fluctuations in the Philippine peso-US dollar exchange rate have also been influencing the price movement for LPG commodities, according to the energy department.
LPG is a very vital commodity for Filipino households during these times, as most are still confined in their homes because of the continuing rigid movement restrictions being enforced by the government because of the lingering pandemic. ###
https://mb.com.ph/2021/09/01/lpg-prices-up-by-p0-65-kg/
Household budget for cooking fuel will rise this month, as the price of liquefied petroleum gas (LPG) has been increased by P0.64 to P0.65 per kilogram (kg) effective today, September 1, or aggregate P7.04 to P7.15 price hike for the standard 11-kilogram cylinder.
As of press time, the LPG firms that already sent notices on their prices include Petron Corporation for its Gasul brand; Phoenix Petroleum for its Super LPG; and Isla Gas for its Solane LPG.
Petron and Phoenix Petroleum implemented a price hike of P0.65 per kg while Solane had a slightly lower adjustment of P0.64 per kg. All price increases enforced by the oil companies are inclusive of value added tax (VAT) charges.
Auto LPG products, alternative fuels being used by the transport sector, were also increased. Petron raised its price by P0.36 per liter and Phoenix Petroleum effected a lower P0.35 per liter hike. LPG companies emphasized that this month’s uptrend in LPG prices had been due to the escalation of contract prices in the world market.
Based on a monitoring report of the Department of Energy (DOE), the pick-up price of LPG products at Metro Manila retail outlets prior to this adjustment had been at the range of P691.00 to P997.00 for the typical 11-kilogram tank.
LPG prices are adjusted every first day of the month – and such cost swing is anchored on Saudi Aramco contract prices, which is the pricing benchmark for Asian markets.
As noted by experts, the climb in contract prices for the propane and butane components of LPG had been attributed to rising demand, as some countries are already building up inventories for their heating requirements in the winter season.
Freight cost and the fluctuations in the Philippine peso-US dollar exchange rate have also been influencing the price movement for LPG commodities, according to the energy department.
LPG is a very vital commodity for Filipino households during these times, as most are still confined in their homes because of the continuing rigid movement restrictions being enforced by the government because of the lingering pandemic. ###
Frustrated investors need to wait longer for RE capacity auction
Published September 1, 2021, 5:28 PM by Myrna M. Velasco
https://mb.com.ph/2021/09/01/frustrated-investors-need-to-wait-longer-for-re-capacity-auction/
There was some degree of frustration on the part of the renewable energy (RE) developers, as their widely anticipated capacity tendering under the Green Energy Auction Program (GEAP) has been delayed again from its August 31 timeline.
The RE investors are ready to place their bets for the targeted 2,000 megawatts of RE capacity covered with power supply agreements (PSAs) in the State-sponsored RE auction.
The original schedule was initially slated middle of this year, then it was moved to August 31, but had to be rescheduled once more as there are still fine-tuning in policies by the Department of Energy (DOE), the overseer of the GEAP process.
According to Energy Assistant Secretary Redentor E. Delola, the department is “working on additional provisions as instructed by the Secretary (Alfonso Cusi),” primarily on the additional options that shall be warranted to the distribution utilities (DUs), being the off-taker of the RE capacities that will be successfully offered under the GEAP.
Another work-in-progress relative to the RE capacity auction is on establishing the ‘green energy auction reserve price’ or GEAR tariff that shall serve as the price ceiling for the capacity offers.
Sharon Montañer, chief of the Renewable Energy Division of the Energy Regulatory Commission (ERC), noted that they will need to wait first for the amended Department Circular of the DOE before they can kick off deliberations on the GEAR price.
Part of the determination process for the GEAR price, it was emphasized, shall be consultation undertakings with the affected and other relevant stakeholders.
Given the remaining tasks through the maze of policymaking and the GEAR tariff setting, there are expectations that the green energy auction might further slide in the forthcoming months or even to next year.
Nevertheless, that could stall the flow of fresh capital in the RE sector, because many prospective developers are largely leaning on the implementation of GEAP before they can advance to final investment decision (FID) phase on their targeted projects.
GEAP is a policy underpinning of the Renewable Portfolio Standards (RPS), an incentive mechanism that shall provide alternative market to RE capacities that shall form part of the installations that will concretize the country’s ‘clean energy’ shift moving forward.
https://mb.com.ph/2021/09/01/frustrated-investors-need-to-wait-longer-for-re-capacity-auction/
There was some degree of frustration on the part of the renewable energy (RE) developers, as their widely anticipated capacity tendering under the Green Energy Auction Program (GEAP) has been delayed again from its August 31 timeline.
The RE investors are ready to place their bets for the targeted 2,000 megawatts of RE capacity covered with power supply agreements (PSAs) in the State-sponsored RE auction.
The original schedule was initially slated middle of this year, then it was moved to August 31, but had to be rescheduled once more as there are still fine-tuning in policies by the Department of Energy (DOE), the overseer of the GEAP process.
According to Energy Assistant Secretary Redentor E. Delola, the department is “working on additional provisions as instructed by the Secretary (Alfonso Cusi),” primarily on the additional options that shall be warranted to the distribution utilities (DUs), being the off-taker of the RE capacities that will be successfully offered under the GEAP.
Another work-in-progress relative to the RE capacity auction is on establishing the ‘green energy auction reserve price’ or GEAR tariff that shall serve as the price ceiling for the capacity offers.
Sharon Montañer, chief of the Renewable Energy Division of the Energy Regulatory Commission (ERC), noted that they will need to wait first for the amended Department Circular of the DOE before they can kick off deliberations on the GEAR price.
Part of the determination process for the GEAR price, it was emphasized, shall be consultation undertakings with the affected and other relevant stakeholders.
Given the remaining tasks through the maze of policymaking and the GEAR tariff setting, there are expectations that the green energy auction might further slide in the forthcoming months or even to next year.
Nevertheless, that could stall the flow of fresh capital in the RE sector, because many prospective developers are largely leaning on the implementation of GEAP before they can advance to final investment decision (FID) phase on their targeted projects.
GEAP is a policy underpinning of the Renewable Portfolio Standards (RPS), an incentive mechanism that shall provide alternative market to RE capacities that shall form part of the installations that will concretize the country’s ‘clean energy’ shift moving forward.
Tender offer of First Gen shares priced at P33/share
Published August 31, 2021, 4:14 PM by Myrna M. Velasco
https://mb.com.ph/2021/08/31/tender-offer-of-first-gen-shares-priced-at-p33-share/
The tender offer (TO) of the common shares of First Gen Corporation that can be unloaded or sold by its outstanding shareholders had been priced at P33 per share, according to a report filed by bidder Philippine Clean Energy Holding Inc. with the Securities and Exchange Commission.
“The tender offer is being made at the price of P33 per common share, the net proceeds of which is payable to tendering shareholders by check or by bank transfer,” Philippine Clean Energy Holding said.
The tender offer will cover disposal of shares by outstanding common shareholders of the Lopez firm – and it will be for a minimum of 107,897,265 issued and outstanding common shares –which will account for 3.0-percent of the company’s total shareholdings.
The higher end target will be 205,000,000 of outstanding common shares and that will be for 5.7-percent shareholdings of First Gen.
Philippine Clean Energy Holding, which will be buying the shares in the tender offer exercise, is affiliated with global investment firm KKR Asia Pacific Infrastructure Pte Holdings Ltd.
American firm KKR is the same company that acquired shares in First Gen when it carried out tender offer for 11.9-percent of its shareholdings last year.
For this TO with the First Gen shareholders, the designated stock transfer agent is BDO Unibank Inc – Trust and Investments Group; while BDO Securities Corporation will act as the tender agent.
When KKR invested in First Gen last year, it cited the credence and integrity of the Lopez family and the entire conglomerate’s business directions; and it likewise noted the company’s leaning on clean energy technologies as its main enticement into injecting capital in the Lopez power generation firm.
First Gen is the country’s leading developer of clean energy projects – and its installations are mainly leaning on renewable energy and gas-fired power technology deployments.
The technology convergence of its power development portfolios are seen to be of perfect-fit, because the flexibility of gas is seen as a best complement to the intermittency dilemmas of emerging RE technologies.
The Lopez firm is also advancing its interim liquefied natural gas (LNG) import facility project, and that is targeted to come on stream by last quarter of next year – and will be a replacement asset with the anticipated depletion of the Malampaya gas field. ###
https://mb.com.ph/2021/08/31/tender-offer-of-first-gen-shares-priced-at-p33-share/
The tender offer (TO) of the common shares of First Gen Corporation that can be unloaded or sold by its outstanding shareholders had been priced at P33 per share, according to a report filed by bidder Philippine Clean Energy Holding Inc. with the Securities and Exchange Commission.
“The tender offer is being made at the price of P33 per common share, the net proceeds of which is payable to tendering shareholders by check or by bank transfer,” Philippine Clean Energy Holding said.
The tender offer will cover disposal of shares by outstanding common shareholders of the Lopez firm – and it will be for a minimum of 107,897,265 issued and outstanding common shares –which will account for 3.0-percent of the company’s total shareholdings.
The higher end target will be 205,000,000 of outstanding common shares and that will be for 5.7-percent shareholdings of First Gen.
Philippine Clean Energy Holding, which will be buying the shares in the tender offer exercise, is affiliated with global investment firm KKR Asia Pacific Infrastructure Pte Holdings Ltd.
American firm KKR is the same company that acquired shares in First Gen when it carried out tender offer for 11.9-percent of its shareholdings last year.
For this TO with the First Gen shareholders, the designated stock transfer agent is BDO Unibank Inc – Trust and Investments Group; while BDO Securities Corporation will act as the tender agent.
When KKR invested in First Gen last year, it cited the credence and integrity of the Lopez family and the entire conglomerate’s business directions; and it likewise noted the company’s leaning on clean energy technologies as its main enticement into injecting capital in the Lopez power generation firm.
First Gen is the country’s leading developer of clean energy projects – and its installations are mainly leaning on renewable energy and gas-fired power technology deployments.
The technology convergence of its power development portfolios are seen to be of perfect-fit, because the flexibility of gas is seen as a best complement to the intermittency dilemmas of emerging RE technologies.
The Lopez firm is also advancing its interim liquefied natural gas (LNG) import facility project, and that is targeted to come on stream by last quarter of next year – and will be a replacement asset with the anticipated depletion of the Malampaya gas field. ###
ERC soliciting industry inputs to IRR of lifeline rate extension policy
Published August 31, 2021, 3:32 PM by Myrna M. Velasco
https://mb.com.ph/2021/08/31/erc-soliciting-industry-inputs-to-irr-of-lifeline-rate-extension-policy/
The Energy Regulatory Commission (ERC) is soliciting inputs from industry stakeholders for the crafting of the implementing rules and regulations (IRR) of Republic Act 11552, which seeks to extend the lifeline subsidy or discount rate for marginalized electricity consumers for the next 50 years.
Signed by President Rodrigo Duterte in May this year, the law specifically stipulated that “in order to provide assistance to electricity consumers, especially those living below the poverty line, and to achieve a more equitable distribution of the lifeline subsidy, a socialized pricing mechanism called a ‘lifeline rate’ for qualified marginalized end-users shall be set by the ERC.”
It was further prescribed that the duration of that lifeline rate subsidy shall be for “a period of 50 years, unless otherwise extended by law.”
The determination of the subsidy rates to be extended to the qualified marginalized end-users had been vested as an authority to be exercised also by the ERC, being the regulator of the restructured power industry.
As specified in the law, “the level of consumption, subsidy and rate shall be determined by the ERC after due notice and hearing,” hence, the regulatory body is now soliciting inputs and comments from the affected and relevant stakeholders.
The concerned parties are given until September 3, 2021 to submit comments or counter-comments to the inputs already submitted by the other industry players.
“All counter-comments and proposals and/or counter-proposals received by the Commission within the prescribed period shall be made part of the records of the rule-making proceeding and may be considered in the finalization of Republic Act 11552’s IRR,” the ERC emphasized.
On establishing the database of Filipino consumers that may be eligible to avail of the extended lifeline rate discounts, the law decreed that the ERC “shall primarily use data from the PSA (Philippine Statistics Authority) in the determination of the level of consumption.”
In the initial implementation of lifeline rate subsidy under Section 73 of the Electric Power Industry Reform Act (EPIRA), the tariff discounts ranged from 25 to 75-percent depending on the magnitude of power usage of the marginalized end-user or poor household customer – and the consumption range considered had been from zero to 100 kilowatt-hours.
In the extension of the lifeline rate subsidy, it was propounded that the ERC shall make use of the qualified household-beneficiaries that are already listed in the Pantawid ng Pamilyang Pilipino Program (4P) of the government.
The validation of qualified customer-beneficiaries shall also be done with the help of the servicing distribution utilities (DUs), such as that of Manila Electric Company (Meralco) and other private DUs as well as electric cooperatives.
https://mb.com.ph/2021/08/31/erc-soliciting-industry-inputs-to-irr-of-lifeline-rate-extension-policy/
The Energy Regulatory Commission (ERC) is soliciting inputs from industry stakeholders for the crafting of the implementing rules and regulations (IRR) of Republic Act 11552, which seeks to extend the lifeline subsidy or discount rate for marginalized electricity consumers for the next 50 years.
Signed by President Rodrigo Duterte in May this year, the law specifically stipulated that “in order to provide assistance to electricity consumers, especially those living below the poverty line, and to achieve a more equitable distribution of the lifeline subsidy, a socialized pricing mechanism called a ‘lifeline rate’ for qualified marginalized end-users shall be set by the ERC.”
It was further prescribed that the duration of that lifeline rate subsidy shall be for “a period of 50 years, unless otherwise extended by law.”
The determination of the subsidy rates to be extended to the qualified marginalized end-users had been vested as an authority to be exercised also by the ERC, being the regulator of the restructured power industry.
As specified in the law, “the level of consumption, subsidy and rate shall be determined by the ERC after due notice and hearing,” hence, the regulatory body is now soliciting inputs and comments from the affected and relevant stakeholders.
The concerned parties are given until September 3, 2021 to submit comments or counter-comments to the inputs already submitted by the other industry players.
“All counter-comments and proposals and/or counter-proposals received by the Commission within the prescribed period shall be made part of the records of the rule-making proceeding and may be considered in the finalization of Republic Act 11552’s IRR,” the ERC emphasized.
On establishing the database of Filipino consumers that may be eligible to avail of the extended lifeline rate discounts, the law decreed that the ERC “shall primarily use data from the PSA (Philippine Statistics Authority) in the determination of the level of consumption.”
In the initial implementation of lifeline rate subsidy under Section 73 of the Electric Power Industry Reform Act (EPIRA), the tariff discounts ranged from 25 to 75-percent depending on the magnitude of power usage of the marginalized end-user or poor household customer – and the consumption range considered had been from zero to 100 kilowatt-hours.
In the extension of the lifeline rate subsidy, it was propounded that the ERC shall make use of the qualified household-beneficiaries that are already listed in the Pantawid ng Pamilyang Pilipino Program (4P) of the government.
The validation of qualified customer-beneficiaries shall also be done with the help of the servicing distribution utilities (DUs), such as that of Manila Electric Company (Meralco) and other private DUs as well as electric cooperatives.
DOE to face power supply uncertainty probe
Published August 30, 2021, 6:00 AM by Myrna M. Velasco
https://mb.com.ph/2021/08/30/doe-to-face-power-supply-uncertainty-probe/
As uncertainties in the power supply situation in the country persist, the Department of Energy (DOE) will be dragged into another Senate investigation where it is expected to present a definitive supply-demand scenario and lay down contingency measures in case the 2022 national elections will be marred with rotational blackouts.
Energy Secretary Alfonso G. Cusi has been giving pronouncements that “there will be no brownouts” in next year’s polling period, but Senate Committee on Energy Chairman Sherwin T. Gatchalian is less convinced.
Given apprehensions over the sufficiency of power supply next year, especially
during the summer months that will coincide with the election period, the
Senate energy committee deemed it prudent to call the DOE to come up with
pre-emptive measures to avoid power interruptions on those critical periods.
“It is crucial that programs are already in place, taking into account all
eventualities to guarantee continuous supply of electricity during the 2022
automated elections,” Gatchalian said.
Several groups have cast doubts on the authenticity of the power supply-demand
outlook put into view by the DOE since there are still factors not integrated
in its short-term energy planning – including the forced outages and de-rating
of power plants; specific schedule of preventive maintenance of generating
facilities; as well as the extent of gas restriction that will be experienced
from the Malampaya field next year.
With such weak planning by the energy department, some stakeholders expressed
fear of possible cheating during the election period. Such apprehension has
been bolstered by the fact that the DOE Secretary serves as president of the
ruling party PDP-Laban.
Cusi has also been criticized by various energy stakeholders for devoting more
of his time on political affairs, instead of fixing the power supply mess that
the DOE is supposed to prioritize because that is the agency’s core mandate.
As noted by Gatchalian, “We must ensure the credibility and transparency in the
conduct of the elections as well as the delivery of fast and accurate results
reflective of the genuine will of the people.”
The lawmaker reiterated that the current power supply-demand vista in the DOE
forecasting — which is trying to paint a “no yellow or red alerts” happening in
the system — is still sketchy, because “the outlook does not take into
consideration the forced and unplanned outages of power plants and the
declining supply from the Malampaya gas field.”
Gatchalian is reminding DOE that the rotational blackouts that happened last
summer and even those in 2019, also an election year, had been mainly
“attributed to the unplanned outages and de-rating of power plants.”
He further stressed that “power interruptions last summer happened despite
earlier statements from the DOE that it was optimistic that the country will
not encounter major challenges or any alerts that may result in insufficiency
of supply.”
Aboitiz firm to reinforce power distribution system for Batangas ecozones
Published August 30, 2021, 6:30 AM by Myrna M. Velasco
https://mb.com.ph/2021/08/30/aboitiz-firm-to-reinforce-power-distribution-system-for-batangas-ecozones/
Aboitiz Construction will be constructing overhead transmission poles in Lipa City and Malvar, Batangas as part of overall infrastructure reinforcement to improve provision of electricity services to economic zone-locators in that same province.
In a statement to the media, Aboitiz Power indicated that the installation of the transmission poles will commence in November this year and it is up for completion in six months. The project deal was signed between Aboitiz Construction and Lima Enerzone.
Lima Enerzone, which is a subsidiary of Aboitiz Power Corporation, is operating the distribution system at Lima Land Inc., which is also a company under the Aboitiz group.
Aboitiz Construction has started in January 2019 the design and construction of the 69-kilovolt (kV) overhead transmission line project; and this will be completed this year.
The power firm explained that “the transmission poles will support the 69-kV power lines that will supply power to businesses located in a 170-hectare Light Industry Science Park (LISP-4) and residential areas in a 212-hectare Pueblo de Oro in Malvar.”
Levi Agoncillo, vice president for Business Development, Tender Planning, Engineering and Design of Aboitiz Construction, indicated that “through this partnership, we aim to contribute to economic growth in Batangas by powering businesses and homes.”
He similarly opined that by delivering “quality and safe project for Lima Enerzone,” the construction company would be able to “help businesses to thrive.”
As stipulated in the deal, Aboitiz Construction “will handle the demolition and restoration of affected structures for the construction of the foundations and erections of steel poles.”
It added that “cable stringing, clipping, and armoring will also be part of the transmission poles project.”
Aboitiz Construction further noted that upon the project’s completion, “this will provide a steady and reliable power supply in LISP-4 in order to support business operations, industries and local services in the area.”
The Aboitiz firm expounded that the power system upgrading project “is part of a bigger initiative to enhance power delivery in Lipa City, Malvar and surrounding areas,” and that shall include the Lima Technology Center which is an ecozone development of Lima Land. ###
https://mb.com.ph/2021/08/30/aboitiz-firm-to-reinforce-power-distribution-system-for-batangas-ecozones/
Aboitiz Construction will be constructing overhead transmission poles in Lipa City and Malvar, Batangas as part of overall infrastructure reinforcement to improve provision of electricity services to economic zone-locators in that same province.
In a statement to the media, Aboitiz Power indicated that the installation of the transmission poles will commence in November this year and it is up for completion in six months. The project deal was signed between Aboitiz Construction and Lima Enerzone.
Lima Enerzone, which is a subsidiary of Aboitiz Power Corporation, is operating the distribution system at Lima Land Inc., which is also a company under the Aboitiz group.
Aboitiz Construction has started in January 2019 the design and construction of the 69-kilovolt (kV) overhead transmission line project; and this will be completed this year.
The power firm explained that “the transmission poles will support the 69-kV power lines that will supply power to businesses located in a 170-hectare Light Industry Science Park (LISP-4) and residential areas in a 212-hectare Pueblo de Oro in Malvar.”
Levi Agoncillo, vice president for Business Development, Tender Planning, Engineering and Design of Aboitiz Construction, indicated that “through this partnership, we aim to contribute to economic growth in Batangas by powering businesses and homes.”
He similarly opined that by delivering “quality and safe project for Lima Enerzone,” the construction company would be able to “help businesses to thrive.”
As stipulated in the deal, Aboitiz Construction “will handle the demolition and restoration of affected structures for the construction of the foundations and erections of steel poles.”
It added that “cable stringing, clipping, and armoring will also be part of the transmission poles project.”
Aboitiz Construction further noted that upon the project’s completion, “this will provide a steady and reliable power supply in LISP-4 in order to support business operations, industries and local services in the area.”
The Aboitiz firm expounded that the power system upgrading project “is part of a bigger initiative to enhance power delivery in Lipa City, Malvar and surrounding areas,” and that shall include the Lima Technology Center which is an ecozone development of Lima Land. ###
Fake DOE letters to DFA caused delays in power plant maintenance works
Published August 30, 2021, 4:46 PM by Myrna M. Velasco
https://mb.com.ph/2021/08/30/fake-doe-letters-to-dfa-caused-delays-in-power-plant-maintenance-works/
Fake letters or correspondence sent by unscrupulous individuals to the Department of Foreign Affairs (DFA) had caused delays in power plant maintenance activities that subsequently triggered this year’s rotational blackouts, according to the Department of Energy.
As explained by the energy department, those ‘forged communication’ had not been acted upon by the DFA, hence, the foreign consultants and experts needed by the power plant owners for their maintenance activities were not able to arrive in the country or have experienced travel delays.
For more than a year, the DOE is being quizzed on why it wasn’t able to act on those requests of the generation companies (GenCos) for coordination with the DFA – especially so since the entry of technical experts for the maintenance downtime schedule of power plants; as well as completion of power projects, had not been immediately addressed.
“What we gathered was the delay was caused by some characters who were faking letters from the DOE – that’s why there were delays with the DFA,” Energy Undersecretary Felix William B. Fuentebella said.
ecause of those unwarranted incidents and for that problem to be fixed, he noted that there is now direct coordination between the Office of the DOE Secretary and that of the DFA Secretary.
“That’s already addressed because there’s already direct representation from the Office of the Secretary to the Department of Foreign Affairs,” Fuentebella stressed.
In this year’s summer months, Filipino consumers had been punished with double whammy of power service interruptions and rate hikes – and the power plant owners and operators tossed the blame to the DOE for not acting early enough on their requests for the travel of their foreign consultants who were supposed to oversee repair and maintenance of their electric generating facilities.
Presently, the DOE is also being nudged on a realistic scenario on the country’s power supply-demand outlook – especially on the scheduled shutdown of the Malampaya gas production facility on October 2-22 this year; as well as in the May 2022 elections.
Energy Secretary Alfonso G. Cusi assured that there will be sufficient power supply on next years’ elections, but many stakeholders in the power sector are not taking his words seriously, primarily because there had been several instances when the DOE had been wrong on its projections.
Still, Fuentebella insisted that Luzon grid in particular will be safe and will have sufficient electricity supply during the scheduled shutdown of the Malampaya field in October.
“As far as the months of September, October, November and December, even up to February, we have sufficient supply…our reserves will be on surplus mode,” he added.
On power supply during the election period, he qualified that “we still have to meet and come up with scenarios upon submission of the generation companies and upon collation by the system operator – so that’s as far as toward the election is concerned.” ###
https://mb.com.ph/2021/08/30/fake-doe-letters-to-dfa-caused-delays-in-power-plant-maintenance-works/
Fake letters or correspondence sent by unscrupulous individuals to the Department of Foreign Affairs (DFA) had caused delays in power plant maintenance activities that subsequently triggered this year’s rotational blackouts, according to the Department of Energy.
As explained by the energy department, those ‘forged communication’ had not been acted upon by the DFA, hence, the foreign consultants and experts needed by the power plant owners for their maintenance activities were not able to arrive in the country or have experienced travel delays.
For more than a year, the DOE is being quizzed on why it wasn’t able to act on those requests of the generation companies (GenCos) for coordination with the DFA – especially so since the entry of technical experts for the maintenance downtime schedule of power plants; as well as completion of power projects, had not been immediately addressed.
“What we gathered was the delay was caused by some characters who were faking letters from the DOE – that’s why there were delays with the DFA,” Energy Undersecretary Felix William B. Fuentebella said.
ecause of those unwarranted incidents and for that problem to be fixed, he noted that there is now direct coordination between the Office of the DOE Secretary and that of the DFA Secretary.
“That’s already addressed because there’s already direct representation from the Office of the Secretary to the Department of Foreign Affairs,” Fuentebella stressed.
In this year’s summer months, Filipino consumers had been punished with double whammy of power service interruptions and rate hikes – and the power plant owners and operators tossed the blame to the DOE for not acting early enough on their requests for the travel of their foreign consultants who were supposed to oversee repair and maintenance of their electric generating facilities.
Presently, the DOE is also being nudged on a realistic scenario on the country’s power supply-demand outlook – especially on the scheduled shutdown of the Malampaya gas production facility on October 2-22 this year; as well as in the May 2022 elections.
Energy Secretary Alfonso G. Cusi assured that there will be sufficient power supply on next years’ elections, but many stakeholders in the power sector are not taking his words seriously, primarily because there had been several instances when the DOE had been wrong on its projections.
Still, Fuentebella insisted that Luzon grid in particular will be safe and will have sufficient electricity supply during the scheduled shutdown of the Malampaya field in October.
“As far as the months of September, October, November and December, even up to February, we have sufficient supply…our reserves will be on surplus mode,” he added.
On power supply during the election period, he qualified that “we still have to meet and come up with scenarios upon submission of the generation companies and upon collation by the system operator – so that’s as far as toward the election is concerned.” ###
Malaya plant’s unit eyed for power reserves
August 30, 2021 | 12:05 am By a Reporter,
https://www.bworldonline.com/malaya-plants-unit-eyed-for-power-reserves/
THE new owner of the 650-megawatt (MW) Malaya Thermal Power Plant (MTPP) aims to secure an agreement with the National Grid Corp. of the Philippines (NGCP) that will allow the facility’s second unit to provide reserve power to the Luzon grid.
“For now, Unit 2 is targeted for ancillary services… We are applying as an ancillary services plant. As new private owners, we need to work on the transfer of all operating permits and secure an agreement with NGCP. We will be doing that [along with] the repair works,” Fort Pilar Energy, Inc. Chief Executive Officer Joseph Omar A. Castillo told BusinessWorld on Viber last week.
Fort Pilar Energy’s subsidiary, Belgrove Power Corp., completed the purchase of MTPP and its underlying land in Pililla, Rizal last week, according to state-run Power Sector Assets and Liabilities Management Corp. (PSALM).
“Assuming we secure [the] ASPA (ancillary services procurement agreement), we should operate Unit 2 by January 2022,” Mr. Castillo added.
PSALM on Aug. 25 said Belgrove paid a total of around P4.19 billion for the plant and the underlying land. Broken down, the purchase price of the assets totaled about P3.12 billion, while payment for MTPP’s remaining fuel inventory reached P1.06 million.
MTPP has two units: 300-MW Unit 1 and 350-MW Unit 2.
At the time of the plant’s turnover to Belgrove, both of the units were on outage, according to Mr. Castillo, as the first unit housed a damaged turbine, and the second unit had a damaged air pre-heater.
“For Unit 1, we will conduct a feasibility study first [before doing any repair works]… We are prioritizing Unit 2 for immediate repair. Our timeline for bringing back Unit 2 online is 12 weeks,” the Fort Pilar Energy executive said.
Unit 2 was built in 1978 and its last overhaul was done more than 20 years ago. Mr. Castillo said the plant will be undergoing overhaul works and preventive maintenance on all systems used in this unit.
“Unit 2 should be ready for testing and commissioning by November 30,” he said.
Earlier, Mr. Castillo said that once MTPP is repaired, it will be able to “supply electricity to the Luzon grid and help ensure sufficient electricity supply in anticipation of the upcoming 2022 national elections.”
The Department of Energy previously said that PSALM would pursue a negotiated sale for the plant, citing high maintenance costs and following years of failed auctions. It added that PSALM had shelled out an average of P1.2 billion a year to maintain the thermal facility from 2010 to 2019.
In a statement issued last week, PSALM’s President and Chief Executive Officer Irene Joy Besido-Garcia described the sale and turnover of MTPP to Belgrove as a “major milestone” since the state-run entity had been trying to privatize the asset for years.
“The amount of P4.19 million will be used by PSALM to settle the remaining financial obligations that PSALM absorbed from the National Power Corp.,” she said.
AC Energy plans JV with German firm for 300MW solar projects
Published August 29, 2021, 6:30 AM by Myrna M. Velasco
https://mb.com.ph/2021/08/29/ac-energy-plans-jv-with-german-firm-for-300mw-solar-projects/
Ayala-led AC Energy Corporation (ACEN) is eyeing to cement a partnership with German firm ib vogt for the installation of at least 300 megawatts (MWdc) of solar power projects in the country.
In a disclosure to the Philippine Stock Exchange (PSE), the Ayala energy company specified that the executive committee of its board tackled in its meeting the proposed tie-up to be entered into with the German firm’s regional affiliate ib vogt Singapore Pte Ltd.
AC Energy noted that the 300MWdc installation is an initial target set by the companies in the propounded joint venture deal, but project sites have yet to be determined.
The German company has investment focus on developing and delivering utility-scale turnkey solar photovoltaic (PV) projects – and it has commanding presence in key markets like Europe and Asia.
AC Energy has been accelerating project developments of wind and solar farm facilities in the country, because this will form a substantial part of the 5,000MW renewable energy (RE) capacity that it is eyeing on stream by year 2025.
Aside from the Philippines, the Ayala energy firm is also pursuing aggressive RE growth investment portfolios in offshore markets, primarily in Vietnam, India and Australia.
In a related development, AC Energy stipulated that the executive committee of its board also earmarked capital expenditure (capex) for its two major RE projects in the Philippines – the 288MW solar project in Buguey and Lal-lo in Cagayan province; and the 275MW expansion of its Gigasol Palauig solar farm venture in Zambales province.
The first 63MW Gigasol Palauig solar facility reached commercial operations in April this year and it is now feeding its generated electricity to the Luzon grid.
That particular project was funneled with an investment of P2.39 billion; and as stated by ACEN, the scale of its electricity generation could top more than 90 million kilowatt-hours.
Apart from the completed projects in the Philippines, AC Energy has operating RE facilities also in Vietnam and India; while its 720MWac New England solar farm venture in Australia is ongoing.
The Ayala company is widely perceived as the most vigorous player in the Philippine RE sector to-date, given the left and right project completions that it has been concretizing in recent months – and the capacities of these plants have also been reinforcing power supply, especially in the Luzon grid.
Beyond its shores, AC Energy is casting a prime goal to become the biggest listed RE player in Southeast Asia – and it is eyeing to have that accomplished along with its 5,000MW capacity buildup target. ###
Batanes gets wind energy system
By The Manila Times August 28, 2021
CHALLENERGY, a Japanese startup company headquartered in Tokyo, has installed a 10-kilowatt Magnus Vertical Axis Wind Turbine in Batanes that will add power to the island's existing microgrid.
The inauguration ceremony for the wind turbine was attended by Batanes Gov. Marilou Cayco; Basco Mayor Demetrius Paul Narag; Challenergy founder and Chief Executive Officer (CEO) Atsushi Shimizu; and Challenergy Philippines CEO Paul Michael Robles. Japanese Ambassador to the Philippines Kazuhiko Koshikawa participated online in the inauguration ceremony
"The newly installed system was made possible with funding support from the government of Japan. Challenergy started working on the Batanes project in 2019. Despite the challenges brought on by the pandemic, its construction works were completed from April to August of this year," the Japanese Embassy said in a statement.
Challenergy's new wind turbine operates even in strong winds and promises a new energy opportunity for places with high wind potential but hindered by the risk of typhoons.
"The microgrid system utilizing this technology is expected to contribute to the improvement of energy access even during typhoons and to the betterment of livelihood of the people of the Philippines," the embassy added.
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