Sunstar Cagayan de Oro
By Anjo Bacarisas and Butch D. Enerio
Thursday, March 6, 2014
THE Committee on Energy of the House of Representatives unanimously approved the suspension of the operation of the Interim Mindanao Electricity Market (IMEM) before it adjourned its public hearing Thursday.
Taking cognizance of the negative opinions and sentiments regarding the effect of the IMEM coming from the different distribution utilities and power generating companies in Mindanao, Representatives Edgardo Masongsong, Vicente Belmonte Jr. and Maximo Rodriguez moved and seconded that the operation of the IMEM be suspended, while they encouraged the implementation of a Department of Energy (DOE) circular signed by DOE Secretary Carlos Petilla on March 4, 2014.
The DOE circular directed all existing power generation companies, including embedded generators, owners and operators of standby generating facilities, to make available their generating units to augment the power supply in the Mindanao Grid.
Interim Mindanao Electricity Market public hearing
Representative Rufus Rodriguez of Cagayan de Oro City’s second congressional district said IMEM is not fit for Mindanao since there is an undersupply of power in the archipelago.
Since there is a lack of supply, Rodriguez explained the power generators could dictate the price of electricity as high as they want.
“The suppliers can benefit from this -- they can sell until P32 per kilowatt-hour especially when the hydro source of electricity is low,” he said.
He added that if the distributors or electric cooperatives do not buy from the price set by the power producers, their option is to either implement a blackout or increase the price of electricity that will be passed on to the consumers.
Rodriguez feared that during summer, when the hydropower supply is low, the private power generators can impose a high price of electricity that will burden the people in Mindanao.
Meanwhile, Bayan-Muna partylist representative Carlos Zarate said that through IMEM, the power producers could raise the price up to the cap that is P32 per kilowatt hour.
Zarate said IMEM is a deregulated market in which power producers can really profit but will put the heavy load on the consumers.
He said the generation charges are automatically billed to the consumers.
Zarate added that the consumer could only complain after the increase in the Energy Regulatory Commission (ERC).
He said IMEM is the same with Wholesale Electricity Spot Market (WESM) in Luzon that cause the price hike on electricity for the past seven years.
“We have seen the evils of WESM in Luzon. Why bring it to Mindanao?”
Zarate asked rhetorically.
Zarate said the low supply of power in Mindanao made the IMEM susceptible to manipulation by the power producers.
“You can’t play with the prices of electricity like the stock market because it is a basic need and it directly affects the needs of the people,” Zarate said.
He said WESM and IMEM are both products of the Electric Power Industry Reform Act of 2011 (Epira of 2001) that only bring additional burden to the poor Filipinos.
Repeal Epira law
Zarate said Epira law should be scrapped because it paves way for the privatization of state-owned power companies and the power spot markets.
“We have the most expensive electricity in the entire Asia,” Zarate said, putting the blame on Epira law.
He said Epira law paves way to the selling of Power Barge 117 and 118 to Aboitiz Power.
Zarate said the power barges are not used in its full capacity in order to keep the supply of power in Mindanao under control.
“The power barges use only 30 percent of its capacity to keep the supply of electricity tight,” Zarate said.
He said through tightening the supply, the power generators could increase their price up to the price ceiling.
Zarate said that for 13 years, no new electric generators were built, instead, the government owned power generators were sold to private corporations that are profit-oriented.
He added that power generation companies provide basic services like electricity and should not be owned by profit-oriented private companies.
Zarate said if the Epira law will be repealed, a law should be created that will bring back power generation companies to government control.
Rodriguez said “we couldn’t sell the hydroelectric companies in Mindanao that are state-owned because it will become profit-oriented.”
Instead, Rodriguez proposed that the government should hire private companies to rehabilitate and maintain the hydropower facilities in Mindanao to increase its performance.
Zarate and Rodriguez agreed that the government should invest in renewable sources of electricity in Mindanao -- solar, wind and hydro sources of power.
Zarate said hydropower facilities in Mindanao are favorable because of the body of waters available in the archipelago.
He said the government could use the Malampaya funds to establish hydropower facilities in Mindanao.
During the public hearing on the IMEM at a hotel here on Thursday, Rodriguez said 90 percent of the cooperatives and consumers are one in their clamor to abolish or suspend IMEM because it burdens the consumers and electric cooperatives.
In a statement sent to Sun.Star Cagayan de Oro, the Mindanao Power Monitoring Committee (MPMC) sought the immediate dispatch of capacities from embedded generators of distribution utilities, including newly-installed modular gensets of several electric cooperatives to bridge power supply deficit resulting from the unscheduled shutdown of 210MW Steag coal-fired power plant.
In a meeting called last Friday to assess the situation and determine the cause of the February 27 island-wide blackout.
“We find it viable to quickly resolve the supply deficit by tapping what is already available in the system, as measures are being exerted to restore affected power plants back online,” said Secretary Luwalhati Antonino, chair of the Mindanao Development Authority (MinDA), which also heads the MPMC.
The MPMC had asked private distribution utilities (DUs) to run its embedded capacities such as diesel generators, even as it requested the Energy Regulatory Commission (ERC) to judiciously accelerate provisional approval of pending rate applications for modular gensets that have already been installed.
It also asked DUs and electric cooperatives distribution to urge large commercial establishments and industries to implement demand-side management measures such as adjustment of operating schedules for processing and manufacturing plants and to opt-in for Interruptible Load Program (ILP), a mechanism where large establishments such as malls and factories run their generator sets instead of tapping from the grid and are allowed to recover cost.
Antonino said the recent system downtime affecting large capacities should be immediately resolved, in light of the approaching onset of summer months when Agus-Pulangi hydroelectric power complex would be expected to have reduced output.
According to initial findings of the Department of Energy (DOE), a malfunction of Agus 1 hydropower plant unit set-off automatic shutdown that cascaded to several other power plants that put offline around 1200MW supply to the Mindanao grid.
The National Grid Corporation of the Philippines (NGCP) has restored stability by noontime of same day, with the system blackout regarded as technical in nature. However, despite system restoration, the 210MW Steag coal-fired power plant remained offline after its plant units 1 and 2 sustained damage to its turbine generating sets.
Steag is still assessing the extent of damage and expects to provide timeline for resumption of plant operations once assessment is completed. Initial technical evaluation indicates Steag needs around eight to 12 weeks to restore plant units back online.
Steag State Power Inc. (SPI) Plant Manager Dr. Carsten Evers said that the company has intensified its efforts in restoring the units back on line noting the precarious and volatile power supply condition in the island.
According to the DOE, the Steag downtime has brought restoration of Mindanao power supply to only about 80 to 85 percent. source
Thursday, March 6, 2014
DOE addresses power shortage in Mindanao
Sunstar Network
Thursday, March 6, 2014
THE Department of Energy (DOE) said Thursday that it has provided immediate and long-term solutions to address the power shortage in Mindanao.
The Energy department said that as early as 2010, the Aquino government has laid down ground works for Mindanao, given that the region has been experiencing power shortage of about 200-400 megawatts, resulting in an average of four-hour rotating brownouts, thus, affecting businesses and the Mindanaoans.
The outages were due to the increasing supply-demand gap brought about by the lack of entry of new power projects, and the derating and non-operation of power plants in the region in the prior years, it said. In the short-term, the DOE said that in partnership with the energy stakeholders, it has added 128 MW in capacities through the introduction of new power capacities, which includes the 15 MW EEI Diesel Peaking Power Plant, (2013) and 15 MW Mapalad Diesel Power Plant (2013), and re-commissioning of the 98 MW Iligan Diesel Power Plant (2013).
The DOE also pushed for the rehabilitation and uprating of the Agus 6 Power Plant Units 1 & 2 from 50 MW to 69 MW, as well as the infrastructure development along Balo-I plains in coordination with Department of Public Works and Highways to maximize the capacities of Agus 1 and 2. Alongside these measures, the DOE said it also initiated several programs and measures to provide the power of choice and draw in all available resources for the benefit of the region: the Interim Mindanao Electricity Market (IMEM), Interruptible Load Program (ILP) and the Modular Gensets Program.
These programs are on a voluntary basis and serve as options for electric power providers and consumers to manage their power requirements with the corresponding costs, it said. For the long-term, the DOE said it has facilitated the entry of new power investments such as the 300 MW Coal-Fired Therma South Energy Project located in Davao del Sur and the 200 MW Southern Mindanao Coal-Fired in Sarangani that will add another 500 MW by 2015.
Another 405 MW Coal-Fired Power Plant of FDC Utilities Inc. in Misamis Oriental will come online by September 2016, it added.
"It takes two-four years to build a new power plant. We in the energy sector realize that the problems that we face now require long-term solutions," Energy Secretary Carlos Jericho Petilla said, adding that "facilitating investors' interest to bring in new capacities to meet the increasing demand is a priority not only in Mindanao but across the country."
The DOE, in collaboration with the National Grid Corp. of the Philippines (NGCP), said it also eyes the completion of the Leyte-Mindanao Interconnection Project by 2018, which will enable it to share capacities with the Luzon and Visayas Grids, especially during supply shortfall.
The Energy department said it also issued on March 4 the Department Circular 2014-03-0006, which directs the operation of all existing generation capacities in the Mindanao grid to operate and offer their power to the grid to increase supply capacity.
"All these measures and projects, as established by the DOE with the help of its attached agencies, the local government units and the private sector, are envisioned to provide the best possible solutions to address the Mindanao power situation for the region’s further development," Petilla said. (SDR/Sunnex) source
Thursday, March 6, 2014
THE Department of Energy (DOE) said Thursday that it has provided immediate and long-term solutions to address the power shortage in Mindanao.
The Energy department said that as early as 2010, the Aquino government has laid down ground works for Mindanao, given that the region has been experiencing power shortage of about 200-400 megawatts, resulting in an average of four-hour rotating brownouts, thus, affecting businesses and the Mindanaoans.
The outages were due to the increasing supply-demand gap brought about by the lack of entry of new power projects, and the derating and non-operation of power plants in the region in the prior years, it said. In the short-term, the DOE said that in partnership with the energy stakeholders, it has added 128 MW in capacities through the introduction of new power capacities, which includes the 15 MW EEI Diesel Peaking Power Plant, (2013) and 15 MW Mapalad Diesel Power Plant (2013), and re-commissioning of the 98 MW Iligan Diesel Power Plant (2013).
The DOE also pushed for the rehabilitation and uprating of the Agus 6 Power Plant Units 1 & 2 from 50 MW to 69 MW, as well as the infrastructure development along Balo-I plains in coordination with Department of Public Works and Highways to maximize the capacities of Agus 1 and 2. Alongside these measures, the DOE said it also initiated several programs and measures to provide the power of choice and draw in all available resources for the benefit of the region: the Interim Mindanao Electricity Market (IMEM), Interruptible Load Program (ILP) and the Modular Gensets Program.
These programs are on a voluntary basis and serve as options for electric power providers and consumers to manage their power requirements with the corresponding costs, it said. For the long-term, the DOE said it has facilitated the entry of new power investments such as the 300 MW Coal-Fired Therma South Energy Project located in Davao del Sur and the 200 MW Southern Mindanao Coal-Fired in Sarangani that will add another 500 MW by 2015.
Another 405 MW Coal-Fired Power Plant of FDC Utilities Inc. in Misamis Oriental will come online by September 2016, it added.
"It takes two-four years to build a new power plant. We in the energy sector realize that the problems that we face now require long-term solutions," Energy Secretary Carlos Jericho Petilla said, adding that "facilitating investors' interest to bring in new capacities to meet the increasing demand is a priority not only in Mindanao but across the country."
The DOE, in collaboration with the National Grid Corp. of the Philippines (NGCP), said it also eyes the completion of the Leyte-Mindanao Interconnection Project by 2018, which will enable it to share capacities with the Luzon and Visayas Grids, especially during supply shortfall.
The Energy department said it also issued on March 4 the Department Circular 2014-03-0006, which directs the operation of all existing generation capacities in the Mindanao grid to operate and offer their power to the grid to increase supply capacity.
"All these measures and projects, as established by the DOE with the help of its attached agencies, the local government units and the private sector, are envisioned to provide the best possible solutions to address the Mindanao power situation for the region’s further development," Petilla said. (SDR/Sunnex) source
Meralco billing an ‘attempt to skirt TRO’
Manila Times.net
March 6, 2014 10:33 pm
by Llanesca T. Panti Reporter
The Manila Electric Co.’s (Meralco) tried to skirt the Supreme Court’s temporary restraining order (TRO) on its proposed P4.15 per kilowatt hour power rate increase when it issued a billing statement that confused customers, a House leader said Thursday. Rep. Neri Colmenares of Bayan Muna, the House Deputy Minority Leader, was referring to Meralco’s enhanced billing statement that listed a deferred amount and a total amount due for payment. The deferred amount is the subject of the TRO.
The power distribution utility has agreed to grant refunds to customers who paid more than they should as a result of the confusing billing statement.
“The decision of Meralco to refund customers victimized by their wrong billing statement is not enough. In fact, it proves that they tried to circumvent the Supreme Court’s TRO and further bolsters the argument that they should be held in contempt by the High Court and penalized for their evident bad faith,” Colmenares, one of the petitioners against the rate hike, pointed out.
Colmenares urged Meralco to reveal how many customers paid the excess charge and how much they need to refund in the interest of transparency and justice.
“Meralco should submit to the Supreme Court a compliance report showing how they implemented the TRO including the total number of customers who paid before the TRO was issued, how many paid due to the devious and confusing format, and how they intend to refund these,” he said.
Colmenares said Meralco should also pay damages to those who incorrectly paid the restrained amount by refunding double what they paid.
“These steps should be pursued because if they got away with it then the consumers would again be at the losing end,” he said.
In the aftermath of Meralco’s issuance of the confusing billing statement, the Akbayan lawmakers already lodged a petition against another Meralco hike, this time a P0.84 per kilowatt hour hike in generation charges, before the Energy Regulatory Commission (ERC).
Reps. Walden Bello and Ibarra Gutierrez of Akbayan party-list filed the said petition, as well as a petition to intervene, to secure authority from the ERC to question and oppose the power distribution firm’s rate adjustment application on top of the unprecedented P4.15 per kilowatt hour power rate hike, which was temporarily stopped by the Supreme Court.
Bello noted that Meralco’s new application was prejudicial to the public, considering that the generation charges which Meralco sought to pass on to its customers stemmed from abuse of market power and the manipulation of prices in the wholesale electricity spot market.
“Meralco’s plan to burden the consumers with a new round of rate hikes amid an ongoing battle regarding the legality of its proposed ‘record high’ P4.15 power rate hike betrays its lack of empathy towards their customers.
This is the height of abuse and impunity. We will not allow it,” Bello said.
Meralco, Bello argued, should first resolve the legal challenges lodged against its previous rate hike application rather than attempt to exact additional charges from consumers.
“It seems that instead of being dissuaded with the TRO issued by the High Tribunal on its previous application, Meralco saw it as a challenge to be more scheming and brazen in pushing through with their burdensome charges,” Bello said.
Meralco sought ERC’s approval on its P0.84 per kilowatt hour hike on the generation charge which it seeks to secure by March to recover fuel costs amounting to over P2 billion.
Also, Meralco is also pitching for a P0.74 per kilowatt hour increase for five months starting with the April billing that will cover the remaining balance from the deferred generation cost amounting to more than P9 billion. source
March 6, 2014 10:33 pm
by Llanesca T. Panti Reporter
The Manila Electric Co.’s (Meralco) tried to skirt the Supreme Court’s temporary restraining order (TRO) on its proposed P4.15 per kilowatt hour power rate increase when it issued a billing statement that confused customers, a House leader said Thursday. Rep. Neri Colmenares of Bayan Muna, the House Deputy Minority Leader, was referring to Meralco’s enhanced billing statement that listed a deferred amount and a total amount due for payment. The deferred amount is the subject of the TRO.
The power distribution utility has agreed to grant refunds to customers who paid more than they should as a result of the confusing billing statement.
“The decision of Meralco to refund customers victimized by their wrong billing statement is not enough. In fact, it proves that they tried to circumvent the Supreme Court’s TRO and further bolsters the argument that they should be held in contempt by the High Court and penalized for their evident bad faith,” Colmenares, one of the petitioners against the rate hike, pointed out.
Colmenares urged Meralco to reveal how many customers paid the excess charge and how much they need to refund in the interest of transparency and justice.
“Meralco should submit to the Supreme Court a compliance report showing how they implemented the TRO including the total number of customers who paid before the TRO was issued, how many paid due to the devious and confusing format, and how they intend to refund these,” he said.
Colmenares said Meralco should also pay damages to those who incorrectly paid the restrained amount by refunding double what they paid.
“These steps should be pursued because if they got away with it then the consumers would again be at the losing end,” he said.
In the aftermath of Meralco’s issuance of the confusing billing statement, the Akbayan lawmakers already lodged a petition against another Meralco hike, this time a P0.84 per kilowatt hour hike in generation charges, before the Energy Regulatory Commission (ERC).
Reps. Walden Bello and Ibarra Gutierrez of Akbayan party-list filed the said petition, as well as a petition to intervene, to secure authority from the ERC to question and oppose the power distribution firm’s rate adjustment application on top of the unprecedented P4.15 per kilowatt hour power rate hike, which was temporarily stopped by the Supreme Court.
Bello noted that Meralco’s new application was prejudicial to the public, considering that the generation charges which Meralco sought to pass on to its customers stemmed from abuse of market power and the manipulation of prices in the wholesale electricity spot market.
“Meralco’s plan to burden the consumers with a new round of rate hikes amid an ongoing battle regarding the legality of its proposed ‘record high’ P4.15 power rate hike betrays its lack of empathy towards their customers.
This is the height of abuse and impunity. We will not allow it,” Bello said.
Meralco, Bello argued, should first resolve the legal challenges lodged against its previous rate hike application rather than attempt to exact additional charges from consumers.
“It seems that instead of being dissuaded with the TRO issued by the High Tribunal on its previous application, Meralco saw it as a challenge to be more scheming and brazen in pushing through with their burdensome charges,” Bello said.
Meralco sought ERC’s approval on its P0.84 per kilowatt hour hike on the generation charge which it seeks to secure by March to recover fuel costs amounting to over P2 billion.
Also, Meralco is also pitching for a P0.74 per kilowatt hour increase for five months starting with the April billing that will cover the remaining balance from the deferred generation cost amounting to more than P9 billion. source
Four new hydropower plants get green light
Business Mirror
06 Mar 2014
Written by Lenie Lectura
The Department of Energy (DOE) has given the green light to four power producers to proceed with the construction of their hydropower facilities.
The DOE issued certificates of confirmation of commerciality to the following: the 60-megawatt (MW) Kapangan hydro project of Cordillera Hydro Electric Power Corp. in Benguet; the 3.8-MW Irisan 1 hydro project of Aboitiz-owned Hedcor Inc. in Tuba, Benguet; the 19-MW Tinoc 2 and 3 of Ayala-owned QuadRiver Energy Corp. in Ifugao; and the 0.05-MW Pasonanca hydro project in Zamboanga del Sur of PhilCarbon Inc.
The five hydro power plants of the four companies have a combined total capacity of 83.85 MW. Earlier, the DOE issued similar certificates to Sunwest Water and Electric Co. for its 8-MW Pinacanauan river hydropower project in Cagayan and 15-MW Main Aklam River hydro- power project.
The agency’s target installation for hydro power is 250 MW; 250 MW for biomass; 200 MW for wind; 50 MW for solar; and 10 MW for ocean technology.
Mario Marasigan, DOE director, earlier said wind and solar projects are currently oversubscribed or have gotten strong investor interest.
“They are expanding their capacities for wind. Investments in wind projects are quite good,” he said. A Renewable Energy Act was enacted in 2008.
This seeks to accelerate the exploration and development of the country’s renewable-energy resources in order to create an alternative pathway for the country’s energy system.
Renewable resources include geothermal, wind, solar, ocean, hydro and biomass.
The law aims for the country to achieve self-reliance and reduce the country’s dependence on fossil fuels, to increase renewable-energy utilization and promote its efficient and cost-effective commercial application by providing fiscal and non-fiscal incentives. source
06 Mar 2014
Written by Lenie Lectura
The Department of Energy (DOE) has given the green light to four power producers to proceed with the construction of their hydropower facilities.
The DOE issued certificates of confirmation of commerciality to the following: the 60-megawatt (MW) Kapangan hydro project of Cordillera Hydro Electric Power Corp. in Benguet; the 3.8-MW Irisan 1 hydro project of Aboitiz-owned Hedcor Inc. in Tuba, Benguet; the 19-MW Tinoc 2 and 3 of Ayala-owned QuadRiver Energy Corp. in Ifugao; and the 0.05-MW Pasonanca hydro project in Zamboanga del Sur of PhilCarbon Inc.
The five hydro power plants of the four companies have a combined total capacity of 83.85 MW. Earlier, the DOE issued similar certificates to Sunwest Water and Electric Co. for its 8-MW Pinacanauan river hydropower project in Cagayan and 15-MW Main Aklam River hydro- power project.
The agency’s target installation for hydro power is 250 MW; 250 MW for biomass; 200 MW for wind; 50 MW for solar; and 10 MW for ocean technology.
Mario Marasigan, DOE director, earlier said wind and solar projects are currently oversubscribed or have gotten strong investor interest.
“They are expanding their capacities for wind. Investments in wind projects are quite good,” he said. A Renewable Energy Act was enacted in 2008.
This seeks to accelerate the exploration and development of the country’s renewable-energy resources in order to create an alternative pathway for the country’s energy system.
Renewable resources include geothermal, wind, solar, ocean, hydro and biomass.
The law aims for the country to achieve self-reliance and reduce the country’s dependence on fossil fuels, to increase renewable-energy utilization and promote its efficient and cost-effective commercial application by providing fiscal and non-fiscal incentives. source
‘Recalculated’ Meralco rate spike 50% lower?
Business Mirror
06 Mar 2014
Written by Butch del Castillo
I HAVE it on good authority that the Energy Regulatory Commission (ERC) would, any day now, grant the motion of the Manila Electric Co. (Meralco) for a “recalculation” of the shockingly high generation-cost increases it came very close to passing on to its 5.3 million customers under their November and December 2013 billings.
The anticipated ERC order, my source said, would definitely be in favor of Meralco’s customers. Meralco has lately taken the stand that a recalculation is imperative because the Wholesale Electricity Spot Market (WESM) clearing prices, used as bases for computation of the increases in generation costs, were not reflective of the actual supply-and-demand situation at the WESM.
Meralco only recently filed the motion for recalculation in an apparent bid to mollify its angry customers.
A recalculation should easily cut by half the outrageously high rate increases being demanded by the generation companies (gencos) through the WESM.
A recalculation, or rerun of WESM transactions and dispatches last November and December, would give the ERC a more realistic generation-rate increase to approve. (The sharp rate increases announced by Meralco last November would have been a fait accompli by now if the Supreme Court [SC] hadn’t stopped it. The SC had issued two successive 60-day temporary restraining orders [TROs] based on a flurry of formal protests filed by various advocacy groups.)
My unimpeachable source said the ERC would, in the end, not only approve a substantially reduced generation-cost increase based on recalculations of the WESM clearing prices in the last two months of 2013.
He added that the ERC would also, most likely, go one step further by ordering Meralco to stagger over a 12-month period—sans interest charges—the imposition of whatever rate increase the ERC would approve based on the recalculation.
This means Meralco would have to immediately pay the gencos in full as soon as the ERC issues its approval of the recalculated rate increase. But when it passes on this cost to its customers, it must stagger its collection over a 12-month period, sans interest.
In effect, Meralco would be duty-bound to shoulder the cost of the money it advanced to the gencos. If its advance to these companies amounts to about P10 billion, then the cost of money it would have to take on would be about P300 million.
That’s small change in the overall profit picture of the electric power-distribution giant, which had a net income of P16 billion in 2012.
My source said: “Everybody has to take a ‘haircut.’
The gencos suffer a 50-percent cut in their expected windfall, while Meralco sacrifices P300 million to soften the blow to its customers. The welfare of electricity consumers is paramount.”
However, my source also said the ERC is still weighing its options. It may choose to jump the gun on the SC by ordering an immediate recalculation of what would be the reasonable or just generation-rate increase for the period referred to by Meralco.
On the other hand, it could decide to wait for the High Court to order it to recalculate the additional generation costs, based on unrigged market conditions at the WESM. “In either case, the outcome will be the same—dramatically reduced generation-cost increases would emerge,” my source said.
Coincidentally, senior Justice beat reporters were talking about an imminent SC move concerning the controversial generation-charge increases.
Jomar Canlas of The Manila Times said the SC was poised to remand the case to the ERC, based on the principle that it is not “a tryer of facts” like any ordinary court, but rather exists to settle “pure questions of law” or even the legality of existing laws.
In effect, he said, the SC would be telling the ERC to do what it is supposed to do as industry regulator: to settle rate-setting issues, as mandated by the Electric Power Industry Reform Act of 2001, or Republic Act 9136. Another veteran Justice reporter, Rey Panaligan of The Manila Bulletin, confirmed that the case may be remanded to the ERC because most of the issues raised by the petitioners were not questions of law, but questions of fact. For instance, the militant group Makabayan charged that “collusion” or greed among the major industry players made the generation cost at the WESM shoot up by over 74 percent. That is clearly a question that only the ERC can judiciously settle.
My friend Pete “Bull” Ilagan, the indefatigable president of the electricity consumer watchdog group National Association of Electricity Consumers for Reforms Inc. (Nasecore), said it was quite possible that the High Court would remand the consolidated case to the ERC, as far as the rate-setting issues are concerned.
Right after Meralco announced last November that a huge increase in generation rates was imminent, at least 19 groups lost no time in filing petitions questioning the legality, and even the constitutionality, of the huge generation-rate increases.
Nasecore was among those petitioners. Ilagan said: “But we strongly believe the issue of constitutionality we raised—for being deprived by the ERC of our constitutional right as consumers to due process—cannot fall within the jurisdiction of the ERC, because it is a question of law and its legality, and not a rate-setting issue, which would fall under the ERC.” source
06 Mar 2014
Written by Butch del Castillo
I HAVE it on good authority that the Energy Regulatory Commission (ERC) would, any day now, grant the motion of the Manila Electric Co. (Meralco) for a “recalculation” of the shockingly high generation-cost increases it came very close to passing on to its 5.3 million customers under their November and December 2013 billings.
The anticipated ERC order, my source said, would definitely be in favor of Meralco’s customers. Meralco has lately taken the stand that a recalculation is imperative because the Wholesale Electricity Spot Market (WESM) clearing prices, used as bases for computation of the increases in generation costs, were not reflective of the actual supply-and-demand situation at the WESM.
Meralco only recently filed the motion for recalculation in an apparent bid to mollify its angry customers.
A recalculation should easily cut by half the outrageously high rate increases being demanded by the generation companies (gencos) through the WESM.
A recalculation, or rerun of WESM transactions and dispatches last November and December, would give the ERC a more realistic generation-rate increase to approve. (The sharp rate increases announced by Meralco last November would have been a fait accompli by now if the Supreme Court [SC] hadn’t stopped it. The SC had issued two successive 60-day temporary restraining orders [TROs] based on a flurry of formal protests filed by various advocacy groups.)
My unimpeachable source said the ERC would, in the end, not only approve a substantially reduced generation-cost increase based on recalculations of the WESM clearing prices in the last two months of 2013.
He added that the ERC would also, most likely, go one step further by ordering Meralco to stagger over a 12-month period—sans interest charges—the imposition of whatever rate increase the ERC would approve based on the recalculation.
This means Meralco would have to immediately pay the gencos in full as soon as the ERC issues its approval of the recalculated rate increase. But when it passes on this cost to its customers, it must stagger its collection over a 12-month period, sans interest.
In effect, Meralco would be duty-bound to shoulder the cost of the money it advanced to the gencos. If its advance to these companies amounts to about P10 billion, then the cost of money it would have to take on would be about P300 million.
That’s small change in the overall profit picture of the electric power-distribution giant, which had a net income of P16 billion in 2012.
My source said: “Everybody has to take a ‘haircut.’
The gencos suffer a 50-percent cut in their expected windfall, while Meralco sacrifices P300 million to soften the blow to its customers. The welfare of electricity consumers is paramount.”
However, my source also said the ERC is still weighing its options. It may choose to jump the gun on the SC by ordering an immediate recalculation of what would be the reasonable or just generation-rate increase for the period referred to by Meralco.
On the other hand, it could decide to wait for the High Court to order it to recalculate the additional generation costs, based on unrigged market conditions at the WESM. “In either case, the outcome will be the same—dramatically reduced generation-cost increases would emerge,” my source said.
Coincidentally, senior Justice beat reporters were talking about an imminent SC move concerning the controversial generation-charge increases.
Jomar Canlas of The Manila Times said the SC was poised to remand the case to the ERC, based on the principle that it is not “a tryer of facts” like any ordinary court, but rather exists to settle “pure questions of law” or even the legality of existing laws.
In effect, he said, the SC would be telling the ERC to do what it is supposed to do as industry regulator: to settle rate-setting issues, as mandated by the Electric Power Industry Reform Act of 2001, or Republic Act 9136. Another veteran Justice reporter, Rey Panaligan of The Manila Bulletin, confirmed that the case may be remanded to the ERC because most of the issues raised by the petitioners were not questions of law, but questions of fact. For instance, the militant group Makabayan charged that “collusion” or greed among the major industry players made the generation cost at the WESM shoot up by over 74 percent. That is clearly a question that only the ERC can judiciously settle.
My friend Pete “Bull” Ilagan, the indefatigable president of the electricity consumer watchdog group National Association of Electricity Consumers for Reforms Inc. (Nasecore), said it was quite possible that the High Court would remand the consolidated case to the ERC, as far as the rate-setting issues are concerned.
Right after Meralco announced last November that a huge increase in generation rates was imminent, at least 19 groups lost no time in filing petitions questioning the legality, and even the constitutionality, of the huge generation-rate increases.
Nasecore was among those petitioners. Ilagan said: “But we strongly believe the issue of constitutionality we raised—for being deprived by the ERC of our constitutional right as consumers to due process—cannot fall within the jurisdiction of the ERC, because it is a question of law and its legality, and not a rate-setting issue, which would fall under the ERC.” source
Power, coal fuel Semirara profit growth
Posted on March 06, 2014 10:27:00 PM
By Claire-Ann M. C. Feliciano, Reporter
LISTED Semirara Mining Corp., a majority-owned subsidiary of DMCI Holdings, Inc. that is into coal mining and power generation, saw profit grow by almost a fifth in last year on the back of performance of its business units, the company said in a disclosure yesterday.
Semirara said audited consolidated financial statements showed net income rose 18.9% to P7.54 billion last year from P6.34 billion in 2012, with its power and coal businesses contributing P5.9 billion and P1.8 billion, respectively, in revenues.
Sales of Semirara’s power segment surged 84.8% to P4.72 billion from P2.55 billion, driven by higher volume of energy sold. Energy sales climbed 46% to 3,460 gigawatt-hours (GWh) from 2,365 GWh.
The company, through SEM-Calaca Power Corp., owns and operates a 300-megawatt (MW), two-unit, coal-fired power plant in Calaca, Batangas.
Semirara also cited completed rehabilitation of one of the plant’s units in 2012 that led to an 83% higher capacity availability last year compared to 31% in 2012.
“Average price also improved slightly at P4.22 per kWh (kilowatt-hour) from P4.09 in 2012,” the company said. Meanwhile, coal segment sales grew 1.8% to P5.34 billion last year from P5.24 billion in 2012. Semirara grew volume of coal sold to 7.6 million metric tons (MT) from 7.2 million MT in 2012. It also booked lower cost of sales per MT. This, the firm explained, “offset the 11% drop in coal average price at P2,185 per MT from P2,455/MT in 2012.”
Further information on the company’s financial results was not immediately available. Semirara was incorporated in 1980 to explore, develop, and mine coal resources in Semirara island in Caluya, Antique, but the company is also involved in power generation through its subsidiaries.
The company, through Southwest Luzon Power Generation Corp., is currently undertaking a 300-MW expansion of its power plant in Batangas.
The expansion -- which involves construction of two 150 MW units -- is expected to be completed by 2015.
The company, in November last year, secured its board’s approval to develop another 700-MW coal plant -- which will be built in phases -- to expand its power generation capacity in the province. The project will be carried out by its wholly owned subsidiary, St. Raphael Power Generation Corp. (SRPGC).
In its disclosure yesterday, Semirara said that its board of directors granted it authority “to execute the required securities and corporate guarantee in relation to the procurement of project debt facility” by SRPGC.
Semirara said the planned debt will be used to fund the second phase of the project, involving a plant with capacity of up to 400 MW and cost of up to $600 million. It will be funded by 70% debt and 30% equity, the company added. Shares of Semirara ended at P374.20 apiece yesterday, up P2.60 or 0.70% from P371.60 apiece on Wednesday. source
By Claire-Ann M. C. Feliciano, Reporter
LISTED Semirara Mining Corp., a majority-owned subsidiary of DMCI Holdings, Inc. that is into coal mining and power generation, saw profit grow by almost a fifth in last year on the back of performance of its business units, the company said in a disclosure yesterday.
Semirara said audited consolidated financial statements showed net income rose 18.9% to P7.54 billion last year from P6.34 billion in 2012, with its power and coal businesses contributing P5.9 billion and P1.8 billion, respectively, in revenues.
Sales of Semirara’s power segment surged 84.8% to P4.72 billion from P2.55 billion, driven by higher volume of energy sold. Energy sales climbed 46% to 3,460 gigawatt-hours (GWh) from 2,365 GWh.
The company, through SEM-Calaca Power Corp., owns and operates a 300-megawatt (MW), two-unit, coal-fired power plant in Calaca, Batangas.
Semirara also cited completed rehabilitation of one of the plant’s units in 2012 that led to an 83% higher capacity availability last year compared to 31% in 2012.
“Average price also improved slightly at P4.22 per kWh (kilowatt-hour) from P4.09 in 2012,” the company said. Meanwhile, coal segment sales grew 1.8% to P5.34 billion last year from P5.24 billion in 2012. Semirara grew volume of coal sold to 7.6 million metric tons (MT) from 7.2 million MT in 2012. It also booked lower cost of sales per MT. This, the firm explained, “offset the 11% drop in coal average price at P2,185 per MT from P2,455/MT in 2012.”
Further information on the company’s financial results was not immediately available. Semirara was incorporated in 1980 to explore, develop, and mine coal resources in Semirara island in Caluya, Antique, but the company is also involved in power generation through its subsidiaries.
The company, through Southwest Luzon Power Generation Corp., is currently undertaking a 300-MW expansion of its power plant in Batangas.
The expansion -- which involves construction of two 150 MW units -- is expected to be completed by 2015.
The company, in November last year, secured its board’s approval to develop another 700-MW coal plant -- which will be built in phases -- to expand its power generation capacity in the province. The project will be carried out by its wholly owned subsidiary, St. Raphael Power Generation Corp. (SRPGC).
In its disclosure yesterday, Semirara said that its board of directors granted it authority “to execute the required securities and corporate guarantee in relation to the procurement of project debt facility” by SRPGC.
Semirara said the planned debt will be used to fund the second phase of the project, involving a plant with capacity of up to 400 MW and cost of up to $600 million. It will be funded by 70% debt and 30% equity, the company added. Shares of Semirara ended at P374.20 apiece yesterday, up P2.60 or 0.70% from P371.60 apiece on Wednesday. source
Electricity supply deal to boost Luzon reserves
Business World Online
Posted on March 06, 2014 10:26:35 PM
A UNIT of Aboitiz Power Corp. (AboitizPower) and the National Grid Corporation of the Philippines (NGCP) have sought regulatory approval for their supply deal that will augment the Luzon grid’s power reserves, the latter said in a statement yesterday.
“The country’s transmission system operator, NGCP, and SN Aboitiz Power-Benguet, Inc. (SNAP-BI) filed with the Energy Regulatory Commission (ERC) a joint application for the approval of their Ancillary Services Procurement Agreement,” the statement read.
NGCP is mandated by law to determine, acquire and dispatch ancillary services (AS) -- or reserve power supply -- to the grid whenever needed.
“After a series of technical testing and evaluation, NGCP concluded that Binga hydroelectric power plant, operated by SNAP-BI, is a capable AS provider,” NGCP said.
The said plant -- located in the municipality of Itogon in Benguet -- has a capacity of 125.8 megawatts (MW).
CRUCIAL COMPONENT
NGCP explained that AS, as provided by the Electric Power Industry Reform Act of 2001, are those services necessary to support the transmission of capacities in Luzon, the Visayas and Mindanao grids.
“AS are needed to regulate the frequency of transmitted electricity to avoid fluctuations and to help the system adapt to sudden loss of power supply to prevent the occurrence of massive blackouts,” the grid operator said.
“AS also provides assistance to back up generating plants that temporarily address the lack of supply in the system, thereby, normalizing the system during a power loss.”
NGCP’s Web site showed that the Luzon grid was estimated yesterday with reserves of 1,109 MW, with system capacity of 8,337 MW against a system peak of 7,228 MW.
NGCP is private firm that operates, maintains and develops the country’s transmission network since 2009. It acquired the 25-year concession of state-owned National Transmission Corp. in an auction conducted by the Power Sector Assets and Liabilities Management Corp. in 2008.
The firm is in charge of the transmission of high-voltage electricity through an interconnected system of transmission lines, towers, substations, and related facilities.
SNAP-BI, on the other hand, is part of the SNAP Group -- which is a joint venture between SN Power of Norway and AboitizPower.
The company in October last year completed the rehabilitation of the Binga power plant which was intended to increase the capacity of the four units from 25 MW each to 31.45 MW each. From 100 MW, the plant is now operating at 125.8 MW.
Last September, SNAP-BI secured a certificate of compliance from the ERC for the four rehabilitated units of the Binga power plant which is a requirement before a plant proceeds with commercial operations.
Besides the Binga plant, SNAP Group also owns and operates the 105-MW hydroelectric power plant in the municipality of Bokod also in Benguet; and the 360-MW Magat hydro plant in Ramon, Isabela.
AboitizPower is the listed power generation and distribution arm of Aboitiz Group. Its net income dropped 22.26% to P14.6 billion as of September last year from P18.78 billion in the same nine months in 2012.
In the same comparative periods, revenues decreased by 4.15% to P45.06 billion from P47.01 billion, while expenses went down by 8.24% to P29.07 billion from P31.68 billion.
Shares of the company gained 85 centavos or 2.05% to close at P42.25 apiece yesterday from P41.40 each on Wednesday. -- Claire-Ann Marie C. Feliciano source
Posted on March 06, 2014 10:26:35 PM
A UNIT of Aboitiz Power Corp. (AboitizPower) and the National Grid Corporation of the Philippines (NGCP) have sought regulatory approval for their supply deal that will augment the Luzon grid’s power reserves, the latter said in a statement yesterday.
“The country’s transmission system operator, NGCP, and SN Aboitiz Power-Benguet, Inc. (SNAP-BI) filed with the Energy Regulatory Commission (ERC) a joint application for the approval of their Ancillary Services Procurement Agreement,” the statement read.
NGCP is mandated by law to determine, acquire and dispatch ancillary services (AS) -- or reserve power supply -- to the grid whenever needed.
“After a series of technical testing and evaluation, NGCP concluded that Binga hydroelectric power plant, operated by SNAP-BI, is a capable AS provider,” NGCP said.
The said plant -- located in the municipality of Itogon in Benguet -- has a capacity of 125.8 megawatts (MW).
CRUCIAL COMPONENT
NGCP explained that AS, as provided by the Electric Power Industry Reform Act of 2001, are those services necessary to support the transmission of capacities in Luzon, the Visayas and Mindanao grids.
“AS are needed to regulate the frequency of transmitted electricity to avoid fluctuations and to help the system adapt to sudden loss of power supply to prevent the occurrence of massive blackouts,” the grid operator said.
“AS also provides assistance to back up generating plants that temporarily address the lack of supply in the system, thereby, normalizing the system during a power loss.”
NGCP’s Web site showed that the Luzon grid was estimated yesterday with reserves of 1,109 MW, with system capacity of 8,337 MW against a system peak of 7,228 MW.
NGCP is private firm that operates, maintains and develops the country’s transmission network since 2009. It acquired the 25-year concession of state-owned National Transmission Corp. in an auction conducted by the Power Sector Assets and Liabilities Management Corp. in 2008.
The firm is in charge of the transmission of high-voltage electricity through an interconnected system of transmission lines, towers, substations, and related facilities.
SNAP-BI, on the other hand, is part of the SNAP Group -- which is a joint venture between SN Power of Norway and AboitizPower.
The company in October last year completed the rehabilitation of the Binga power plant which was intended to increase the capacity of the four units from 25 MW each to 31.45 MW each. From 100 MW, the plant is now operating at 125.8 MW.
Last September, SNAP-BI secured a certificate of compliance from the ERC for the four rehabilitated units of the Binga power plant which is a requirement before a plant proceeds with commercial operations.
Besides the Binga plant, SNAP Group also owns and operates the 105-MW hydroelectric power plant in the municipality of Bokod also in Benguet; and the 360-MW Magat hydro plant in Ramon, Isabela.
AboitizPower is the listed power generation and distribution arm of Aboitiz Group. Its net income dropped 22.26% to P14.6 billion as of September last year from P18.78 billion in the same nine months in 2012.
In the same comparative periods, revenues decreased by 4.15% to P45.06 billion from P47.01 billion, while expenses went down by 8.24% to P29.07 billion from P31.68 billion.
Shares of the company gained 85 centavos or 2.05% to close at P42.25 apiece yesterday from P41.40 each on Wednesday. -- Claire-Ann Marie C. Feliciano source
Gov’t lists energy plans for Mindanao
Business World Online
Posted on March 06, 2014 10:16:42 PM
MALACAÑANG yesterday said that the Department of Energy (DoE) and the power industry are implementing a four-measure solution to address the current power shortage in Mindanao.
Citing the DoE, Presidential Communications Operation Office Secretary Herminio "Sonny" B. Coloma said at a press briefing yesterday that the current supply in Mindanao is 1,064 megawatts, compared with an estimated 1,222-MW peak demand.
Hence, a shortfall of 158 MW. "This explains why there rotating brownouts at an average of two to three hours, except in Maguindanao province, which is currently experiencing up to more than 10 hours of power interruption daily," Mr. Coloma said.
The Palace official said that, to address this problem, the DoE and the power industry is implementing the following measures: 1. Use of embedded generators by distribution utilities to augment power supply; 2. Adoption of the interruptible load program -- consumers’ voluntary use of generator sets, for which they will receive compensation based on rates by the Energy Regulatory Commission (ERC); 3. Continuing repair and rehabilitation of the 210-MW STEAG State Power, Inc. coal-fired power plant in Misamis Oriental, estimated to take two to three months; and 4. Continuing repair and rehabilitation of existing hydroelectric power plants.
"The government is closely monitoring ongoing projects that will increase power supply in Mindanao by up to 900 MW. These new projects include the 200-MW coal-fired plant of the Alsons [Power] Group and the 300-MW Aboitiz [Power Corp] - owned coal-fired plant, which will both come online by 2015," Mr. Coloma said. He said another 400 MW will become operational in 2016 through the coal-fired plant owned by Filinvest Development Corp.
The Palace official also said that the DoE continues to undertake reforms, including pursuing a 50/50 energy mix between traditional and renewable energy, with increased private sector investments in hydroelectric, biomass, and solar power.
In its own press statement yesterday, the DoE said that it has provided both long- and short-term solutions to the power crisis in the region.
"The outages were due to the increasing supply-demand gap brought about by the lack of entry of new power projects, and the derating and non-operation of power plants in the region in the prior years," the agency said in the statement.
In the short-term, the DoE, with energy stakeholders, last year added 128 MW through the 15-MW EEI Diesel Peaking Power Plant and 15-MW Mapalad Diesel Power Plant as well as the re-commissioning of the 98-MW Iligan Diesel Power Plant.
"It takes two to four years to build a new power plant. We in the energy sector realize that the problems that we face now require long-term solutions," DoE Secretary Carlos Jericho Petilla was quoted saying.
"Facilitating investors’ interest to bring in new capacities to meet the increasing demand is a priority not only in Mindanao but across the country," he further said. -- Maria Laura V. Angeles source
Posted on March 06, 2014 10:16:42 PM
MALACAÑANG yesterday said that the Department of Energy (DoE) and the power industry are implementing a four-measure solution to address the current power shortage in Mindanao.
Citing the DoE, Presidential Communications Operation Office Secretary Herminio "Sonny" B. Coloma said at a press briefing yesterday that the current supply in Mindanao is 1,064 megawatts, compared with an estimated 1,222-MW peak demand.
Hence, a shortfall of 158 MW. "This explains why there rotating brownouts at an average of two to three hours, except in Maguindanao province, which is currently experiencing up to more than 10 hours of power interruption daily," Mr. Coloma said.
The Palace official said that, to address this problem, the DoE and the power industry is implementing the following measures: 1. Use of embedded generators by distribution utilities to augment power supply; 2. Adoption of the interruptible load program -- consumers’ voluntary use of generator sets, for which they will receive compensation based on rates by the Energy Regulatory Commission (ERC); 3. Continuing repair and rehabilitation of the 210-MW STEAG State Power, Inc. coal-fired power plant in Misamis Oriental, estimated to take two to three months; and 4. Continuing repair and rehabilitation of existing hydroelectric power plants.
"The government is closely monitoring ongoing projects that will increase power supply in Mindanao by up to 900 MW. These new projects include the 200-MW coal-fired plant of the Alsons [Power] Group and the 300-MW Aboitiz [Power Corp] - owned coal-fired plant, which will both come online by 2015," Mr. Coloma said. He said another 400 MW will become operational in 2016 through the coal-fired plant owned by Filinvest Development Corp.
The Palace official also said that the DoE continues to undertake reforms, including pursuing a 50/50 energy mix between traditional and renewable energy, with increased private sector investments in hydroelectric, biomass, and solar power.
In its own press statement yesterday, the DoE said that it has provided both long- and short-term solutions to the power crisis in the region.
"The outages were due to the increasing supply-demand gap brought about by the lack of entry of new power projects, and the derating and non-operation of power plants in the region in the prior years," the agency said in the statement.
In the short-term, the DoE, with energy stakeholders, last year added 128 MW through the 15-MW EEI Diesel Peaking Power Plant and 15-MW Mapalad Diesel Power Plant as well as the re-commissioning of the 98-MW Iligan Diesel Power Plant.
"It takes two to four years to build a new power plant. We in the energy sector realize that the problems that we face now require long-term solutions," DoE Secretary Carlos Jericho Petilla was quoted saying.
"Facilitating investors’ interest to bring in new capacities to meet the increasing demand is a priority not only in Mindanao but across the country," he further said. -- Maria Laura V. Angeles source
‘Tribo-electricity’ trend of the future
Manila Times.net
March 6, 2014 10:15 pm
PARIS: Out at sea, gentle waves provide power for thousands of homes. In cities, dancefloor moves generate electricity for nightclubs.
In the countryside, hikers use leg power to recharge their phones. It is an alluring goal of clean, reliable power free from geo-political risks—and scientists in the United States said on Tuesday (Wednesday in Manila) it lies within reach, thanks to a smart way to harvest energy called tribo-electricity.
Researchers at the Georgia Institute of Technology said they had built a simple prototype device that converts stop-start movement into power.
Waves, walking and dancing—even rainfall, computer keys or urban traffic—could one day be harnessed to drive sensors, mobile gadgets or even electricity plants, they contend. Zhong Lin Wang, a professor of materials science and engineering, described the invention a “breakthrough.”
“Our technology can be used for large-scale energy harvesting, so that the energy we have wasted for centuries will be useful,” he told Agence France-Presse by email.
“Tribo-electric” is a modern term with ancient roots—from the Greek word for “rub.”
Its electricity is created from friction between two substances causing a charge of electrons to be transferred from one to the other.
It commonly happens, for instance, when plastic-soled shoes are in contact with a nylon carpet, causing the snap of static discharge when one’s hand touches a metal doorknob.
Because tribo-electric is so unpredictable, it has been generally shunned as a power source.
The preferred method has been magnetic induction—a turbine driven by nuclear- or fossil-powered steam or water.
But in a new study published in the journal Nature Communications, Wang’s team said they had overcome key hurdles to converting a haphazardly-generated electrical charge into current.
Their prototype comprises a disc about 10 centimeters (four inches) across, designed to show the potential from a small, portable generator moved by ambient energy.
Inside are two circular sheets of material, one an electron “donor” and the other an electron “receiver,” brought together through rotary movement.
If the sheets are separated, one then holds an electrical charge isolated by the gap between them.
Sandwiched between the two discs is a third disc with electrodes, which bridges the gap and helps a small current to flow.
At a top speed of 3,000 revolutions per minute, the device generated 1.5 watts. This gave it an energy efficiency of 24 percent, three times greater than piezoelectric, the previously best source of mechanical electricity harvesting—and as efficient as magnetic-induction turbines.
It can run on a gentle wind or tap water, or “random jerky motions,” including human movement, to provide the rotation, Wang said.
“As long as there is mechanical action, there is power that can be generated,” he added.
The prototype used copper for the rotator and gold for the electrodes in lab tests, but these could easily be substituted for low-cost synthetics, he said. The team is working on ways to scale up tribo-electric energy for harvesting power from the ocean. AFP source
March 6, 2014 10:15 pm
PARIS: Out at sea, gentle waves provide power for thousands of homes. In cities, dancefloor moves generate electricity for nightclubs.
In the countryside, hikers use leg power to recharge their phones. It is an alluring goal of clean, reliable power free from geo-political risks—and scientists in the United States said on Tuesday (Wednesday in Manila) it lies within reach, thanks to a smart way to harvest energy called tribo-electricity.
Researchers at the Georgia Institute of Technology said they had built a simple prototype device that converts stop-start movement into power.
Waves, walking and dancing—even rainfall, computer keys or urban traffic—could one day be harnessed to drive sensors, mobile gadgets or even electricity plants, they contend. Zhong Lin Wang, a professor of materials science and engineering, described the invention a “breakthrough.”
“Our technology can be used for large-scale energy harvesting, so that the energy we have wasted for centuries will be useful,” he told Agence France-Presse by email.
“Tribo-electric” is a modern term with ancient roots—from the Greek word for “rub.”
Its electricity is created from friction between two substances causing a charge of electrons to be transferred from one to the other.
It commonly happens, for instance, when plastic-soled shoes are in contact with a nylon carpet, causing the snap of static discharge when one’s hand touches a metal doorknob.
Because tribo-electric is so unpredictable, it has been generally shunned as a power source.
The preferred method has been magnetic induction—a turbine driven by nuclear- or fossil-powered steam or water.
But in a new study published in the journal Nature Communications, Wang’s team said they had overcome key hurdles to converting a haphazardly-generated electrical charge into current.
Their prototype comprises a disc about 10 centimeters (four inches) across, designed to show the potential from a small, portable generator moved by ambient energy.
Inside are two circular sheets of material, one an electron “donor” and the other an electron “receiver,” brought together through rotary movement.
If the sheets are separated, one then holds an electrical charge isolated by the gap between them.
Sandwiched between the two discs is a third disc with electrodes, which bridges the gap and helps a small current to flow.
At a top speed of 3,000 revolutions per minute, the device generated 1.5 watts. This gave it an energy efficiency of 24 percent, three times greater than piezoelectric, the previously best source of mechanical electricity harvesting—and as efficient as magnetic-induction turbines.
It can run on a gentle wind or tap water, or “random jerky motions,” including human movement, to provide the rotation, Wang said.
“As long as there is mechanical action, there is power that can be generated,” he added.
The prototype used copper for the rotator and gold for the electrodes in lab tests, but these could easily be substituted for low-cost synthetics, he said. The team is working on ways to scale up tribo-electric energy for harvesting power from the ocean. AFP source
China reaps rewards, dangers from coal-based energy
Manila Times.net
March 6, 2014 10:13 pm
BEIJING: Forty years of digging for coal have left the miner with tuberculosis and drained his village water supply. But he, like China, clings to the resource as his economic mother lode.
“If I did farming, it would take me a year to get what I make in a month,” said the 55-year-old, surnamed Di and sporting the blackened fingernails of someone who has spent most of his days beneath the hills of China’s poverty-stricken Guizhou province.
His lungs “don’t hurt much,” he said, although in any case he cannot afford treatment.
China, too, has embraced the economic benefits of coal despite the threats it poses to health and the environment. But anger has mounted over the stubborn smog that regularly cloaks Chinese cities, and authorities have repeatedly promised action since President Xi Jinping took office a year ago.
Premier Li Keqiang vowed to “declare war against pollution”, speaking on Wednesday at the opening of the Communist-controlled National People’s Congress legislature’s annual session.
The government will cap total energy consumption, shut 50,000 small coal-fired furnaces, clean up major coal-burning power plants, and take six million high-emission vehicles off the roads, he promised. Yet in practice, changing course will be tough in the face of swelling energy demand and pressure to sustain economic growth, already at its lowest levels since 1999.
“Since environmental issues have become so public—everybody is talking about them, the international community is talking about them—the government feels the need to deal with environmental issues more seriously,” said Xiaomin Liu, a Beijing-based coal expert with the consultancy IHS CERA.
“They will do a lot of things, but I don’t think that will change things fundamentally,” he said. “The first priority is still to keep up economic growth,” Liu added.
Smog scandal
China uses more energy than any other country and is responsible for about half the world’s coal consumption, relying on the fossil fuel for two-thirds of its energy supply.
Public pressure over pollution erupted in January 2013 when an “airpocalypse” of smog choked Beijing, with particulate matter shooting 40 times past United Nations standards and horrifying images spreading worldwide.
The scandal prompted authorities to stop burying the problem —cities and state-controlled media began reporting on air quality, and this year 15,000 factories were required to regularly publicize emissions data.
Over the past year, Beijing has already allocated 1.7 trillion yuan ($280 billion) to improve air quality, and pledged to evaluate officials not only by their economic but also environmental record.
On September, it announced tough air pollution limits, called for coal-use cuts in three densely populated areas, including the capital, and promised to shave nationwide coal consumption to 65 percent of total energy by 2017.
Some of the targets were “ambitious,” sending an important message, said Alvin Lin, the Beijing-based China climate and energy policy director at the Natural Resources Defense Council.
“Once you send that signal, then everybody has to try to meet it,” he said.
But implementation is another matter and even stricter quotas were still needed, he warned.
Terrible cost
Another concern is that wealthier coastal cities, which have complained about pollution the loudest, will simply shift their coal-fired power stations and factories to the country’s poorer interior.
“Maybe the push is going to be just to push the dirty coal further west,” said Jennifer Turner, director of the China Environment Forum at the Wilson Center in Washington.
“It’s the whole NIMBY [not in my backyard] movement,” she added. Guizhou, in southwestern China, has pledged to close half its mines—about 800—by mid-2014, but this follows a broader trend of shutting small struggling operators without necessarily cutting overall production.
Villagers around Anshun have long reaped the benefits of coal, earning as much as 6,000 yuan a month from mining, double what they could make as laborers and 10 times more than farming.
Nonetheless, some see the advantages of ending the fatal explosions, blackened lungs, water shortages, and the threat of collapsing homes.
Opposite a mine in Anshun, along a picturesque valley lined with gentle terraces of yellow rapeseed amid a cascade of smoky blue hills, Zhang Yan tearfully recalled searching for her husband after he failed to return from work one evening last year. He had been killed on the job, and their teenage son said his father had urged him to find another trade.
“He had talked with me about this, ‘Don’t do this work, stay above ground, it’s safer’,” he said, huddling around a stove for warmth.
Up the road, a longtime miner surnamed Yan said he quit last year for fear of the “hidden danger.”
“Closing the mines is a good thing, first off because of the environmental damage to homes and water,” said the 45-year-old father of two, who is debating whether to leave his family in Guizhou to find work elsewhere.
“The benefits are only temporary,” he said, adding that, “In the long term there are no benefits.” AFP source
March 6, 2014 10:13 pm
BEIJING: Forty years of digging for coal have left the miner with tuberculosis and drained his village water supply. But he, like China, clings to the resource as his economic mother lode.
“If I did farming, it would take me a year to get what I make in a month,” said the 55-year-old, surnamed Di and sporting the blackened fingernails of someone who has spent most of his days beneath the hills of China’s poverty-stricken Guizhou province.
His lungs “don’t hurt much,” he said, although in any case he cannot afford treatment.
China, too, has embraced the economic benefits of coal despite the threats it poses to health and the environment. But anger has mounted over the stubborn smog that regularly cloaks Chinese cities, and authorities have repeatedly promised action since President Xi Jinping took office a year ago.
Premier Li Keqiang vowed to “declare war against pollution”, speaking on Wednesday at the opening of the Communist-controlled National People’s Congress legislature’s annual session.
The government will cap total energy consumption, shut 50,000 small coal-fired furnaces, clean up major coal-burning power plants, and take six million high-emission vehicles off the roads, he promised. Yet in practice, changing course will be tough in the face of swelling energy demand and pressure to sustain economic growth, already at its lowest levels since 1999.
“Since environmental issues have become so public—everybody is talking about them, the international community is talking about them—the government feels the need to deal with environmental issues more seriously,” said Xiaomin Liu, a Beijing-based coal expert with the consultancy IHS CERA.
“They will do a lot of things, but I don’t think that will change things fundamentally,” he said. “The first priority is still to keep up economic growth,” Liu added.
Smog scandal
China uses more energy than any other country and is responsible for about half the world’s coal consumption, relying on the fossil fuel for two-thirds of its energy supply.
Public pressure over pollution erupted in January 2013 when an “airpocalypse” of smog choked Beijing, with particulate matter shooting 40 times past United Nations standards and horrifying images spreading worldwide.
The scandal prompted authorities to stop burying the problem —cities and state-controlled media began reporting on air quality, and this year 15,000 factories were required to regularly publicize emissions data.
Over the past year, Beijing has already allocated 1.7 trillion yuan ($280 billion) to improve air quality, and pledged to evaluate officials not only by their economic but also environmental record.
On September, it announced tough air pollution limits, called for coal-use cuts in three densely populated areas, including the capital, and promised to shave nationwide coal consumption to 65 percent of total energy by 2017.
Some of the targets were “ambitious,” sending an important message, said Alvin Lin, the Beijing-based China climate and energy policy director at the Natural Resources Defense Council.
“Once you send that signal, then everybody has to try to meet it,” he said.
But implementation is another matter and even stricter quotas were still needed, he warned.
Terrible cost
Another concern is that wealthier coastal cities, which have complained about pollution the loudest, will simply shift their coal-fired power stations and factories to the country’s poorer interior.
“Maybe the push is going to be just to push the dirty coal further west,” said Jennifer Turner, director of the China Environment Forum at the Wilson Center in Washington.
“It’s the whole NIMBY [not in my backyard] movement,” she added. Guizhou, in southwestern China, has pledged to close half its mines—about 800—by mid-2014, but this follows a broader trend of shutting small struggling operators without necessarily cutting overall production.
Villagers around Anshun have long reaped the benefits of coal, earning as much as 6,000 yuan a month from mining, double what they could make as laborers and 10 times more than farming.
Nonetheless, some see the advantages of ending the fatal explosions, blackened lungs, water shortages, and the threat of collapsing homes.
Opposite a mine in Anshun, along a picturesque valley lined with gentle terraces of yellow rapeseed amid a cascade of smoky blue hills, Zhang Yan tearfully recalled searching for her husband after he failed to return from work one evening last year. He had been killed on the job, and their teenage son said his father had urged him to find another trade.
“He had talked with me about this, ‘Don’t do this work, stay above ground, it’s safer’,” he said, huddling around a stove for warmth.
Up the road, a longtime miner surnamed Yan said he quit last year for fear of the “hidden danger.”
“Closing the mines is a good thing, first off because of the environmental damage to homes and water,” said the 45-year-old father of two, who is debating whether to leave his family in Guizhou to find work elsewhere.
“The benefits are only temporary,” he said, adding that, “In the long term there are no benefits.” AFP source
Zambo City blackouts down to 5 hours daily
By Mindanews on March 6 2014 5:28 pm
ZAMBOANGA CITY (MindaNews/06 March) – Rotational daily blackouts in the city that lasted eight to nine hours have been reduced to five hours starting Wednesday, an official of the Zamboanga City Electric Cooperative (Zamcelco) said Thursday.
Omar Sahi, president of Zamcelco, said they shortened the blackouts after the Iligan City-based Mapalad Power Corporation (Mapalad) provided additional 15 megawatts (MW) to the cooperative.
Sahi said this happened after they have successfully completed all the requirements including the letter of credit.
He said Mapalad is now providing a total of 18MW to Zamcelco. But he said Zamcelso still suffers from a power deficiency of around 20MW.
The peak load demand of the cooperative is 88MW. He said aside from Mapalad, Zamcelco gets its power supply from the Power Sector and Liabilities Management (PSALM) and Therma Marine Incorporated, which allot 37MW and 18MW, respectively.
Meanwhile, Sahi said they have requested the ERC to issue them a provisional authority to enable Zamcelco to purchase 7MW from the Bukidnon-based Crystal Sugar Company.
Sahi said the rotational blackouts per feeder will be further reduced to two hours daily once the ERC issues the provisional authority. Zamcelco has 24 feeders with over 100,000 consumers. (MindaNews) source
ZAMBOANGA CITY (MindaNews/06 March) – Rotational daily blackouts in the city that lasted eight to nine hours have been reduced to five hours starting Wednesday, an official of the Zamboanga City Electric Cooperative (Zamcelco) said Thursday.
Omar Sahi, president of Zamcelco, said they shortened the blackouts after the Iligan City-based Mapalad Power Corporation (Mapalad) provided additional 15 megawatts (MW) to the cooperative.
Sahi said this happened after they have successfully completed all the requirements including the letter of credit.
He said Mapalad is now providing a total of 18MW to Zamcelco. But he said Zamcelso still suffers from a power deficiency of around 20MW.
The peak load demand of the cooperative is 88MW. He said aside from Mapalad, Zamcelco gets its power supply from the Power Sector and Liabilities Management (PSALM) and Therma Marine Incorporated, which allot 37MW and 18MW, respectively.
Meanwhile, Sahi said they have requested the ERC to issue them a provisional authority to enable Zamcelco to purchase 7MW from the Bukidnon-based Crystal Sugar Company.
Sahi said the rotational blackouts per feeder will be further reduced to two hours daily once the ERC issues the provisional authority. Zamcelco has 24 feeders with over 100,000 consumers. (MindaNews) source
SC urged to cite Meralco in contempt
By Dennis Carcamo (philstar.com) | Updated March 6, 2014 - 11:00am
MANILA, Philippines - Militant group Bayan on Thursday urged the Supreme Court to cite in contempt power distributor Manila Electric Co. for charging its customers P58-million for a rate hike that is still covered by a temporary restraining order.
"Meralco's inclusion of the hike in its most recent monthly bill affected 37,000 consumers. Had it not been for consumer vigilance, Meralco would have gotten away with blatantly violating the SC TRO," Bayan secretary general Renato Reyes said.
Reyes said Meralco should refund to its customers the amount it collected prior the issuance of the TRO by the High Court on December 23 last year.
"Meralco was able to collect a P2.00/kWh (per kilowatt hour) rate adjustment before the TRO was issued. The amount remains with Meralco according to their customer hotline," he added.
He noted that the Energy Regulatory Commission should also deny the request of Meralco for a provisional authority to hike power rates again by P4.5606/kwh for its December 2013 generation charge.
"Meralco has filed a petition for a rate hike last February 14 after the SC declared that December generation charges were not covered by the TRO. A provisional authority will allow Meralco to increase rates even before the ERC concludes its hearings and the merits of the case decided. A provisional authority will also preempt the SC ruling on a pending petition related to the rate hike," Reyes said. Bayan will file its intervention next week before the ERC office in Pasig City. source
MANILA, Philippines - Militant group Bayan on Thursday urged the Supreme Court to cite in contempt power distributor Manila Electric Co. for charging its customers P58-million for a rate hike that is still covered by a temporary restraining order.
"Meralco's inclusion of the hike in its most recent monthly bill affected 37,000 consumers. Had it not been for consumer vigilance, Meralco would have gotten away with blatantly violating the SC TRO," Bayan secretary general Renato Reyes said.
Reyes said Meralco should refund to its customers the amount it collected prior the issuance of the TRO by the High Court on December 23 last year.
"Meralco was able to collect a P2.00/kWh (per kilowatt hour) rate adjustment before the TRO was issued. The amount remains with Meralco according to their customer hotline," he added.
He noted that the Energy Regulatory Commission should also deny the request of Meralco for a provisional authority to hike power rates again by P4.5606/kwh for its December 2013 generation charge.
"Meralco has filed a petition for a rate hike last February 14 after the SC declared that December generation charges were not covered by the TRO. A provisional authority will allow Meralco to increase rates even before the ERC concludes its hearings and the merits of the case decided. A provisional authority will also preempt the SC ruling on a pending petition related to the rate hike," Reyes said. Bayan will file its intervention next week before the ERC office in Pasig City. source
Mindanao brownouts to persist
By Riza T. Olchondra
Philippine Daily Inquirer
9:15 am | Thursday, March 6th, 2014
Mindanao may experience rotating two-hour brownouts for another two to three months before the power supply situation finally normalises.
The Mindanao coal-fired power plant, which is said to have the largest capacity among similar facilities in Mindanao, is still offline since the island was hit by a massive blackout on Feb. 27. Authorities have yet to pinpoint the cause of the disruption.
“The indicative duration for the restoration of the units is estimated from 8 to 12 weeks based on the initial findings of the ongoing technical evaluation,” STEAG State Power Inc. (SPI), which is operating the coal power plant, said in an advisory on Wednesday.
Units 1 and 2 of the coal power plant went offline after its turbine-generators sustained damage at the height of the Mindanao-wide grid systems disturbance. The facility, with each unit having a net generating capacity of 105MW, was working normally before the island-wide outage, initial investigations showed. source
Philippine Daily Inquirer
9:15 am | Thursday, March 6th, 2014
Mindanao may experience rotating two-hour brownouts for another two to three months before the power supply situation finally normalises.
The Mindanao coal-fired power plant, which is said to have the largest capacity among similar facilities in Mindanao, is still offline since the island was hit by a massive blackout on Feb. 27. Authorities have yet to pinpoint the cause of the disruption.
“The indicative duration for the restoration of the units is estimated from 8 to 12 weeks based on the initial findings of the ongoing technical evaluation,” STEAG State Power Inc. (SPI), which is operating the coal power plant, said in an advisory on Wednesday.
Units 1 and 2 of the coal power plant went offline after its turbine-generators sustained damage at the height of the Mindanao-wide grid systems disturbance. The facility, with each unit having a net generating capacity of 105MW, was working normally before the island-wide outage, initial investigations showed. source
Complaints bring back power rates
Inquirer.net
12:09 am | Thursday, March 6th, 2014
CALBAYOG CITY, Philippines—Complaints by consumers over an unannounced power rate increase in January have forced Samar’s electric cooperative to revert to the old rate for its billing that month.
Thelma Cadajas, 40, of Barangay (village) Payahan, said she was “shocked” when she saw her bill more than doubled. Her monthly bill usually amounts to between P200 and P350. In January, it reached more than P800, she said.
“We were not informed that an increase would be implemented,” Cadajas told the Inquirer. “This will really affect our monthly budget.”
The woman sells barbecue to earn extra income to support her three children. Her husband Raul is a construction worker.
Placida Balios, acting general manager of the Samar 1 Electric Cooperative (Samelco 1), explained that the increase in power rates was due to the spikes in the generation system and transmission charges for the December–January billing period.
The generation system charge of P3.65 per kilowatt-hour (kWh) by Power Sector Assets and Liabilities Management Corp., the country’s biggest power distributor, was up by P0.65 centavos, or from P5.5172 to P6.1672 per kWh, Balios said.
On the other hand, the transmission system charge by National Grid Corp. of the Philippines rose by P3.65, or from P1.91 per kWh to P5.6163, she added.
During a legislative inquiry by the city council, Balios said Samelco would not implement the current bill following the consumers’ negative reaction. Jennifer Allegado, Inquirer Visayas source
12:09 am | Thursday, March 6th, 2014
CALBAYOG CITY, Philippines—Complaints by consumers over an unannounced power rate increase in January have forced Samar’s electric cooperative to revert to the old rate for its billing that month.
Thelma Cadajas, 40, of Barangay (village) Payahan, said she was “shocked” when she saw her bill more than doubled. Her monthly bill usually amounts to between P200 and P350. In January, it reached more than P800, she said.
“We were not informed that an increase would be implemented,” Cadajas told the Inquirer. “This will really affect our monthly budget.”
The woman sells barbecue to earn extra income to support her three children. Her husband Raul is a construction worker.
Placida Balios, acting general manager of the Samar 1 Electric Cooperative (Samelco 1), explained that the increase in power rates was due to the spikes in the generation system and transmission charges for the December–January billing period.
The generation system charge of P3.65 per kilowatt-hour (kWh) by Power Sector Assets and Liabilities Management Corp., the country’s biggest power distributor, was up by P0.65 centavos, or from P5.5172 to P6.1672 per kWh, Balios said.
On the other hand, the transmission system charge by National Grid Corp. of the Philippines rose by P3.65, or from P1.91 per kWh to P5.6163, she added.
During a legislative inquiry by the city council, Balios said Samelco would not implement the current bill following the consumers’ negative reaction. Jennifer Allegado, Inquirer Visayas source
Mindanao blackouts to continue
Manila Standard Today
By Alena Mae S. Flores | Mar. 06, 2014 at 12:01am
STEAG State Power, owner of the 210 megawatt Mindanao coal plant in Misamis Oriental said it would take from eight to 12 weeks to repair and restore the power plant, which sustained damages by the grid disturbance last February, a company statement said.
“The indicative duration for the restoration of the units is estimated from eight to 12 weeks based on initial findings of the on-going technical evaluation,” the statement said.
Its two units went offline after sustaining damages in its turbine generators at the height of the Mindanao-wide grid systems disturbance last February 27. Each unit has a net generating capacity of 105 MW.
STEAG plant manager Dr. Carsten Evers said the company has intensified its efforts to restore the units back on line because of the precarious and volatile power supply condition in Mindanao.
“Our priority now is to restore the units back on line and ease up the critical power supply condition of Mindanao,” he said.
“SPI employees are working around the clock to restore the power plant back to the grid. The STEAG coal power plant is Mindanao’s biggest in terms of unity capacity, accounting to nearly a fifth of the island’s total electricity supply.
Mindanao is suffering from two to three hour brownouts due to the shutdown of the Mindanao coal plant. source
By Alena Mae S. Flores | Mar. 06, 2014 at 12:01am
STEAG State Power, owner of the 210 megawatt Mindanao coal plant in Misamis Oriental said it would take from eight to 12 weeks to repair and restore the power plant, which sustained damages by the grid disturbance last February, a company statement said.
“The indicative duration for the restoration of the units is estimated from eight to 12 weeks based on initial findings of the on-going technical evaluation,” the statement said.
Its two units went offline after sustaining damages in its turbine generators at the height of the Mindanao-wide grid systems disturbance last February 27. Each unit has a net generating capacity of 105 MW.
STEAG plant manager Dr. Carsten Evers said the company has intensified its efforts to restore the units back on line because of the precarious and volatile power supply condition in Mindanao.
“Our priority now is to restore the units back on line and ease up the critical power supply condition of Mindanao,” he said.
“SPI employees are working around the clock to restore the power plant back to the grid. The STEAG coal power plant is Mindanao’s biggest in terms of unity capacity, accounting to nearly a fifth of the island’s total electricity supply.
Mindanao is suffering from two to three hour brownouts due to the shutdown of the Mindanao coal plant. source
Meralco generation charge to dip
Manila Standard Today
By Alena Mae S. Flores | Mar. 06, 2014 at 12:01am Manila Electric Co.’s generation charge may go down below P5.5359 per kilowatthour over moderate demand arising from the cool weather, an official said Wednesday.
“There are strong indications that March gen charge will be lower than February’s, based on information we currently have. Demand remained moderate because of cool weather while supply situation was normal,” Meralco head of utility economics Lawrence Fernandez told reporters.
The charge dipped to P5.5359 per kWh in February, a P0.1314 reduction from the P5.6673 per kWh implemented in January.
“We’re still waiting for billing adjustments and we’ll know final numbers probably by Monday,” Fernandez said.
The cost of supply from our power supply agreements, independent power producers, and from the Wholesale Electricity Spot Market, the country’s trading floor of electricity have all gone down during the February supply month, Meralco collects the generation charge, which comprises majority of the electricity bill to pay for its power suppliers such as the IPPs, plants selling to Meralco under the power supply agreements and the WESM.
Meralco’s distribution, supply, and metering charges account for only about 18 percent on the average of the total electricity bill.
Joe Zaldarriaga, Meralco spokesman, said the company will refund customers the amount they have paid in the February bills corresponding to the deferred amount.
“This will be done through credit to bill,” he said.
Of the total 5.5 million customers of Meralco, only about 7 percent, or around 430,000 customers, received bills with deferred amount. Of the 5.5 million Meralco customers, only 0.67 percent or 37,000 customers, opted to pay the deferred amount last February (or around 8 percent of the 430,000 customers who received bills with deferred amount).
Zaldarriaga said this corresponds to an estimated amount of P58 million.
“We would like to reiterate that Meralco has no intention to collect the deferred amount,” he said. source
DOE to launch 5th Energy Contracting Round in April I
By ris C. Gonzales (The Philippine Star) | Updated March 6, 2014 - 12:00am
MANILA, Philippines - The Department of Energy (DOE) will officially launch next month a fresh round of bidding for petroleum and coal exploration contracts, or the so-called Philippine Energy Contracting Round (PECR).
In a circular, the DOE said applicants interested in coal contracts may submit applications starting May 5. The last day of acceptable PECR application is on Sept. 5 and the endorsement of winning applications is set on Nov. 21.
The DOE has yet to announce the timetable for the application for petroleum exploration contracts. Through this new round, the fifth in a series, the government is eyeing new investors to explore potential coal and petroleum fields around the country.
Earlier, Energy Secretary Carlos Jericho Petilla said the awarding of the contracts is targeted in June. However, there had been delays because the DOE had to verify areas that were up for bidding.
A regular activity conducted by the DOE, PECR is a transparent and competitive system for awarding service contracts.
The goal is to showcase the petroleum exploration opportunities in the country and to attract energy investors to develop the country’s indigenous oil and gas resources.
In 2011, the department launched its 4th PECR covering 15 blocks or an area of approximately 100,339 square kilometers (km).
The blocks have an average size of 6,700 square km each, located mostly in frontier regions. Investments in these service contracts are huge but the returns are attractive as well, depending on their respective petroleum potential.
Proponents have to embark on seismic studies, which may cost at least $5 million, and exploration well drilling activities amounting to up to $100 million per well.
More importantly, successful exploration could yield new sources of energy for the Philippines, which is still a heavy importer of oil and, thus, dependent on movements in the global crude market. source
MANILA, Philippines - The Department of Energy (DOE) will officially launch next month a fresh round of bidding for petroleum and coal exploration contracts, or the so-called Philippine Energy Contracting Round (PECR).
In a circular, the DOE said applicants interested in coal contracts may submit applications starting May 5. The last day of acceptable PECR application is on Sept. 5 and the endorsement of winning applications is set on Nov. 21.
The DOE has yet to announce the timetable for the application for petroleum exploration contracts. Through this new round, the fifth in a series, the government is eyeing new investors to explore potential coal and petroleum fields around the country.
Earlier, Energy Secretary Carlos Jericho Petilla said the awarding of the contracts is targeted in June. However, there had been delays because the DOE had to verify areas that were up for bidding.
A regular activity conducted by the DOE, PECR is a transparent and competitive system for awarding service contracts.
The goal is to showcase the petroleum exploration opportunities in the country and to attract energy investors to develop the country’s indigenous oil and gas resources.
In 2011, the department launched its 4th PECR covering 15 blocks or an area of approximately 100,339 square kilometers (km).
The blocks have an average size of 6,700 square km each, located mostly in frontier regions. Investments in these service contracts are huge but the returns are attractive as well, depending on their respective petroleum potential.
Proponents have to embark on seismic studies, which may cost at least $5 million, and exploration well drilling activities amounting to up to $100 million per well.
More importantly, successful exploration could yield new sources of energy for the Philippines, which is still a heavy importer of oil and, thus, dependent on movements in the global crude market. source
Wednesday, March 5, 2014
Meralco sets refund to 37,000 customers
Manila Bulletin
by Myrna Velasco March 5, 2014
Power utility giant Manila Electric Company (Meralco) has scheduled refund in this March billing for its 37,000 customers who paid the portion of its P4.15 per kilowatt hour (kWh) restrained rate hike in December billing.
According to Meralco assistant vice president Joe Zaldarriaga, the total refund amount would be P58 million for all customers who made full payments for that particular billing month. He noted that those receiving pay-back will be very paltry compared to the utility firm’s 5.5 million customers.
Meralco had yielded to pressure from its rate hike case petitioners, primarily the Makabayan bloc, to return the collections it made prior to the issuance of the Supreme Court’s temporary restraining order (TRO) around December 23 last year.
The March billing is expected to be out next week, with the adjustments due for announcement anytime this week.
As of press time, officials of the utility firm noted that they were still waiting for billing from the Wholesale Electricity Spot Market.
The company’s generation charge under December billing had been frozen at P5.67 per kilowatt hour (kWh) following the high court’s ruling. The restraining order was extended for another 60 days until April 22 this year.
That level of generation cost was sustained in its January billing, but when the SC clarified that the TRO just covered the December billing, Meralco had since then applied for the recovery of its deferred P5.33 per kWh adjustment in the January bills.
The company batted for six-month cost recovery with the initial month pegged at P0.844 per kWh and the succeeding months at P0.7433 per kWh.
Meralco has been batting for immediate recovery that should have started this March billing, but given the extent of opposition being thrown against its generation charge recovery filing, the Energy Regulatory Commission (ERC) has decided to subject it first to thorough public consultation. source
Meralco says rates to go down
Business World Online
Posted on March 05, 2014 10:11:35 PM
By Claire-Ann C. Feliciano, Reporter
CUSTOMERS of Manila Electric Co. (Meralco) can expect to pay less for power this month, the distribution utility yesterday said, given lower costs incurred from suppliers.
"We have good news for our customers. They may see another decrease in the generation charge in their March bills [following a reduction last month]," the company said in a statement. February’s generation charge was P5.54 per kilowatt-hour (kWh), down from the P5.67/kWh imposed in January.
"Based on initial figures, the cost of supply from our power supply agreements, independent power producers and from the Wholesale Electricity Spot Market have all gone down during the February supply month, which will impact on the March bill," Meralco said.
The generation charge -- the cost of power sold to a power distributor -- accounts for around 57% of total charges in Meralco’s electricity bill.
The rest comprises the distribution charge (17.6%), transmission charge (9%), system loss charge (5%), and taxes and other charges (11.5%).
The firm said the March generation rate was still being finalized. Meralco utility economics head Larry S. Fernandez said the figure could be announced by Monday.
"There are no figures yet. There are strong indications that generation charge will be lower than February’s," Mr. Fernandez reiterated in a text message.
Meralco also urged customers to prepare for the summer months as electricity consumption historically goes up during the period.
"According to our weather bureau... we could start experiencing... hot weather starting next month. Given this advisory, we would like to encourage our customers to practice energy efficiency," the firm said.
Meralco suggested unplugging appliances when not in use and setting a timer for air conditioners before bedtime so that the units would not have to run the entire night.
"In buying appliances, check and compare the energy efficiency factor (EEF) of the different brands," it added, explaining that a higher EEF means better energy efficiency.
The utility’s announcement of possible lower March generation charges comes in the wake of complaints on a bill format that has caused confusion.
The Energy Regulatory Commission has asked Meralco to explain the format, which included components such as the "Balance from Previous Billing," "Total Current Amount" and "Total Amount Due."
The "Balance From Previous Billing" covers unpaid amounts relating to a planned rate hike that is being reviewed by the Supreme Court.
A P4.15/kWh increase supposed to have been implemented in tranches beginning last December has been ordered shelved by the high court, which is hearing a complaint filed by party-list legislators and consumer groups.
An additional P5.33/kWh rate hike, also to be charged in stages, is being sought by Meralco, which says that this covers unpaid balances to power suppliers.
Meralco has said that it "has no intention to collect the deferred amount," which it claimed was included in the bill only for "transparency purposes."
"In recognition of the feedback we got from our customers, though, we will make it clearer in their March bills as to which amount they will only have to pay.
In addition, the deferred amount will no longer be included in the ‘Total Amount Due’," the company said. Meralco also said that only 7% of its 5.5 million customers received bills with the deferred amount itemized, adding that those who paid in full would be refunded.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by Philippine Long Distance Telephone Co. (PLDT). Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld. source
Posted on March 05, 2014 10:11:35 PM
By Claire-Ann C. Feliciano, Reporter
CUSTOMERS of Manila Electric Co. (Meralco) can expect to pay less for power this month, the distribution utility yesterday said, given lower costs incurred from suppliers.
"We have good news for our customers. They may see another decrease in the generation charge in their March bills [following a reduction last month]," the company said in a statement. February’s generation charge was P5.54 per kilowatt-hour (kWh), down from the P5.67/kWh imposed in January.
"Based on initial figures, the cost of supply from our power supply agreements, independent power producers and from the Wholesale Electricity Spot Market have all gone down during the February supply month, which will impact on the March bill," Meralco said.
The generation charge -- the cost of power sold to a power distributor -- accounts for around 57% of total charges in Meralco’s electricity bill.
The rest comprises the distribution charge (17.6%), transmission charge (9%), system loss charge (5%), and taxes and other charges (11.5%).
The firm said the March generation rate was still being finalized. Meralco utility economics head Larry S. Fernandez said the figure could be announced by Monday.
"There are no figures yet. There are strong indications that generation charge will be lower than February’s," Mr. Fernandez reiterated in a text message.
Meralco also urged customers to prepare for the summer months as electricity consumption historically goes up during the period.
"According to our weather bureau... we could start experiencing... hot weather starting next month. Given this advisory, we would like to encourage our customers to practice energy efficiency," the firm said.
Meralco suggested unplugging appliances when not in use and setting a timer for air conditioners before bedtime so that the units would not have to run the entire night.
"In buying appliances, check and compare the energy efficiency factor (EEF) of the different brands," it added, explaining that a higher EEF means better energy efficiency.
The utility’s announcement of possible lower March generation charges comes in the wake of complaints on a bill format that has caused confusion.
The Energy Regulatory Commission has asked Meralco to explain the format, which included components such as the "Balance from Previous Billing," "Total Current Amount" and "Total Amount Due."
The "Balance From Previous Billing" covers unpaid amounts relating to a planned rate hike that is being reviewed by the Supreme Court.
A P4.15/kWh increase supposed to have been implemented in tranches beginning last December has been ordered shelved by the high court, which is hearing a complaint filed by party-list legislators and consumer groups.
An additional P5.33/kWh rate hike, also to be charged in stages, is being sought by Meralco, which says that this covers unpaid balances to power suppliers.
Meralco has said that it "has no intention to collect the deferred amount," which it claimed was included in the bill only for "transparency purposes."
"In recognition of the feedback we got from our customers, though, we will make it clearer in their March bills as to which amount they will only have to pay.
In addition, the deferred amount will no longer be included in the ‘Total Amount Due’," the company said. Meralco also said that only 7% of its 5.5 million customers received bills with the deferred amount itemized, adding that those who paid in full would be refunded.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by Philippine Long Distance Telephone Co. (PLDT). Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld. source
Committee set up for petroleum, coal contract transparency
Business World Online
Posted on March 05, 2014 09:47:03 PM
IN ANTICIPATION of the next Philippine Energy Contracting Rounds (PECR), slated to take place this year, the Energy department has ordered the creation of a committee to ensure a more transparent and competitive system of granting the rights to explore and develop the country’s coal and petroleum resources.
The department, in a circular posted on its Web site, has outlined procedures to govern the system of awarding petroleum service contracts and coal operating contracts.
"This circular shall apply to the determination of the legal, technical, and financial qualifications of applicants, the evaluation of their applications, and the award of corresponding service and operating contracts for petroleum and coal resources," the document, dated Feb. 24, stated.
The circular creates a Review and Evaluation Committee (REC) to consist of the undersecretary in charge of the Energy Resource Development Bureau, his assistant, and the directors of the ERDB, legal services, and financial services.
As part of its responsibilities, the REC is tasked to identify the prospective coal and petroleum areas within the country’s territory.
"In this regard, the REC shall notify the local government units of the offered areas within their territorial jurisdiction, prior to the inclusion to the PECR," the circular read.
The committee will also have the obligation to examine, evaluate and review the technical, financial, and legal capabilities of project applicants and, after which, recommend to the Secretary the award of contracts.
It is also the REC’s responsibility to "[r]esolve issues in relation to the legal, technical and financial capabilities of applicants, including motions for reconsideration."
The circular also detailed the procedure for awarding petroleum service contracts and coal operating contracts.
Since the REC will determine the prospective areas, it should also prepare the PECR documents with description of available data. Such data should include the location map and technical description of areas being offered and schedule of activities for the PECR.
A pre-submission conference for PECR applications should be scheduled to discuss relevant rules and entertain clarifications from prospective applicants. Submission of applications should be based on the existing guidelines.
The evaluation should be based on legal qualification using a pass or fail criterion; work program (40%); technical qualification (20%); and financial qualification (40%).
"The highest ranked applicant who meets the... requirements shall be selected," the circular read. The legal department and ERDB should prepare the final contract that will be awarded.
Applicants, within seven days from the receipt of the award notice, should pay necessary fees and charges.
State-owned PNOC Exploration Corp. (PNOC-EC) has been given a reserved option to acquire a maximum of 10% interest in a contract involving one or more Filipino participants and 15% for a contract with no Filipino participant.
"All rights, privileges, benefits, costs, expenses, obligations and liabilities of PNOC-EC shall be in proportion to its participating interest in the proposed service contract," the circular noted.
Previous contractors with cancelled to terminated contracts due to outstanding work and financial obligations are no longer allowed to join the PECR.
The circular will take effect fifteen days following its publication in two newspapers. Under the PECR 4 -- which took place last year -- the Energy department offered 38 coal and 15 petroleum blocks for exploration and development.
The auction received 69 bids for 28 coal contracts and 20 offers for 11 petroleum contracts, but the department only awarded 11 coal and four petroleum contracts. -- Claire-Ann Marie C. Feliciano source
Posted on March 05, 2014 09:47:03 PM
IN ANTICIPATION of the next Philippine Energy Contracting Rounds (PECR), slated to take place this year, the Energy department has ordered the creation of a committee to ensure a more transparent and competitive system of granting the rights to explore and develop the country’s coal and petroleum resources.
The department, in a circular posted on its Web site, has outlined procedures to govern the system of awarding petroleum service contracts and coal operating contracts.
"This circular shall apply to the determination of the legal, technical, and financial qualifications of applicants, the evaluation of their applications, and the award of corresponding service and operating contracts for petroleum and coal resources," the document, dated Feb. 24, stated.
The circular creates a Review and Evaluation Committee (REC) to consist of the undersecretary in charge of the Energy Resource Development Bureau, his assistant, and the directors of the ERDB, legal services, and financial services.
As part of its responsibilities, the REC is tasked to identify the prospective coal and petroleum areas within the country’s territory.
"In this regard, the REC shall notify the local government units of the offered areas within their territorial jurisdiction, prior to the inclusion to the PECR," the circular read.
The committee will also have the obligation to examine, evaluate and review the technical, financial, and legal capabilities of project applicants and, after which, recommend to the Secretary the award of contracts.
It is also the REC’s responsibility to "[r]esolve issues in relation to the legal, technical and financial capabilities of applicants, including motions for reconsideration."
The circular also detailed the procedure for awarding petroleum service contracts and coal operating contracts.
Since the REC will determine the prospective areas, it should also prepare the PECR documents with description of available data. Such data should include the location map and technical description of areas being offered and schedule of activities for the PECR.
A pre-submission conference for PECR applications should be scheduled to discuss relevant rules and entertain clarifications from prospective applicants. Submission of applications should be based on the existing guidelines.
The evaluation should be based on legal qualification using a pass or fail criterion; work program (40%); technical qualification (20%); and financial qualification (40%).
"The highest ranked applicant who meets the... requirements shall be selected," the circular read. The legal department and ERDB should prepare the final contract that will be awarded.
Applicants, within seven days from the receipt of the award notice, should pay necessary fees and charges.
State-owned PNOC Exploration Corp. (PNOC-EC) has been given a reserved option to acquire a maximum of 10% interest in a contract involving one or more Filipino participants and 15% for a contract with no Filipino participant.
"All rights, privileges, benefits, costs, expenses, obligations and liabilities of PNOC-EC shall be in proportion to its participating interest in the proposed service contract," the circular noted.
Previous contractors with cancelled to terminated contracts due to outstanding work and financial obligations are no longer allowed to join the PECR.
The circular will take effect fifteen days following its publication in two newspapers. Under the PECR 4 -- which took place last year -- the Energy department offered 38 coal and 15 petroleum blocks for exploration and development.
The auction received 69 bids for 28 coal contracts and 20 offers for 11 petroleum contracts, but the department only awarded 11 coal and four petroleum contracts. -- Claire-Ann Marie C. Feliciano source
GenSan eyes Socoteco’s gensets to ease power woes
By Mindanews on March 5 2014 7:03 pm
GENERAL SANTOS CITY (MindaNews/05 March) — In a bid to ease the daily rotational brownouts here, city officials are pushing for the use of the leased diesel-fired modular generator sets of distribution utility South Cotabato II Electric Cooperative (Socoteco II) despite the lack of official approval from the Energy Regulatory Commission (ERC).
City Mayor Ronnel Rivera said he had met with officials of Socoteco II earlier this week to discuss the possible operationalization of the 15-megawatt (MW) modular generator sets to further reduce the rotational brownouts lasting two hours and 30 minutes being implemented by the electric cooperative.
He said Socoteco II general manager Rodolfo Ocat initially agreed to the local government’s proposal even without an approved power sales agreement (PSA) from the ERC.
The ERC conducted a public hearing on October 30 last year for the application filed by Socoteco II on August 28 for the approval of the PSA “with prayer for provisional authority.”
The application pertains to the PSA executed between Socoteco II and SoEnergy Philippines Inc. on May 28, 2013 that was amended on July 23.
ERC has yet to issue a decision regarding the two-year deal, which details the rates that will be imposed on local power consumers for the use of the generator sets.
“Socoteco II will subsidize whatever will be difference between the applied rates and those that will be approved by the ERC,” Rivera said in an interview over TV Patrol Socsksargen.
Under the PSA, SoEnergy Philippines will “make available, reserve, guarantee and deliver” 15 MW of power at full capacity to the electric cooperative.
SoEnergy earlier established a power plant composed of Caterpillar brand modular generators and other necessary facilities in a lot owned by Socoteco in Purok Lanton, Barangay Apopong here.
Based on Socoteco II’s projections, an additional 52 centavos per kilowatt-hour (kwh) will be added to the area’s basic power rates if the generator sets will be used for six hours daily and P1.22 per kwh for 12 hours.
A capacity fee of 22 centavos per kwh will be charged to local power consumers while the generator units are on standby.
Aside from the operationalization of the generator sets, Rivera said the local government is also coordinating with others sectors in the city to determine possible measures to help ease the rotational brownouts and its impact on the local economy.
He said they are specifically looking at tapping other alternative power sources to ensure stable power supplies in the area, especially during the coming summer season.
The rotational brownouts in the city and other areas served by Socoteco II reached as high as seven hours last year due to the reduction of power supplies coming from the hydroelectric plants of the National Power Corporation in Bukidnon and Lanao provinces.
The power supply shortage was blamed on the declining water levels along Lake Lanao and the Pulangi River, where the hydroelectric plants are located.
Owing to this, the mayor said urged local residents to make the necessary preparations in case the rotational brownouts would eventually worsen.
“We should prepare for it as early as now so we will not be surprised by it later on,” Rivera said. (MindaNews) source
GENERAL SANTOS CITY (MindaNews/05 March) — In a bid to ease the daily rotational brownouts here, city officials are pushing for the use of the leased diesel-fired modular generator sets of distribution utility South Cotabato II Electric Cooperative (Socoteco II) despite the lack of official approval from the Energy Regulatory Commission (ERC).
City Mayor Ronnel Rivera said he had met with officials of Socoteco II earlier this week to discuss the possible operationalization of the 15-megawatt (MW) modular generator sets to further reduce the rotational brownouts lasting two hours and 30 minutes being implemented by the electric cooperative.
He said Socoteco II general manager Rodolfo Ocat initially agreed to the local government’s proposal even without an approved power sales agreement (PSA) from the ERC.
The ERC conducted a public hearing on October 30 last year for the application filed by Socoteco II on August 28 for the approval of the PSA “with prayer for provisional authority.”
The application pertains to the PSA executed between Socoteco II and SoEnergy Philippines Inc. on May 28, 2013 that was amended on July 23.
ERC has yet to issue a decision regarding the two-year deal, which details the rates that will be imposed on local power consumers for the use of the generator sets.
“Socoteco II will subsidize whatever will be difference between the applied rates and those that will be approved by the ERC,” Rivera said in an interview over TV Patrol Socsksargen.
Under the PSA, SoEnergy Philippines will “make available, reserve, guarantee and deliver” 15 MW of power at full capacity to the electric cooperative.
SoEnergy earlier established a power plant composed of Caterpillar brand modular generators and other necessary facilities in a lot owned by Socoteco in Purok Lanton, Barangay Apopong here.
Based on Socoteco II’s projections, an additional 52 centavos per kilowatt-hour (kwh) will be added to the area’s basic power rates if the generator sets will be used for six hours daily and P1.22 per kwh for 12 hours.
A capacity fee of 22 centavos per kwh will be charged to local power consumers while the generator units are on standby.
Aside from the operationalization of the generator sets, Rivera said the local government is also coordinating with others sectors in the city to determine possible measures to help ease the rotational brownouts and its impact on the local economy.
He said they are specifically looking at tapping other alternative power sources to ensure stable power supplies in the area, especially during the coming summer season.
The rotational brownouts in the city and other areas served by Socoteco II reached as high as seven hours last year due to the reduction of power supplies coming from the hydroelectric plants of the National Power Corporation in Bukidnon and Lanao provinces.
The power supply shortage was blamed on the declining water levels along Lake Lanao and the Pulangi River, where the hydroelectric plants are located.
Owing to this, the mayor said urged local residents to make the necessary preparations in case the rotational brownouts would eventually worsen.
“We should prepare for it as early as now so we will not be surprised by it later on,” Rivera said. (MindaNews) source
More blackouts feared Power
Failure Hits Country’s Seat Of Power
Manila Bulletin
by Genalyn D. Kabiling, Camcer Ordoñez Imam and Ellson A. Quismorio
March 5, 2014
The power problem that has been gripping Mindanao failed to spare the country’s seat of power.
Yesterday, two power interruptions hit a Malacañang event attended by President Benigno S. Aquino III in succession. Presidential Communications Operations Secretary Herminio Coloma Jr. explained that the power interruptions were caused by a “minor technical problem” in the Palace power lines, adding the matter has already been addressed.
Coloma denied that the incident was connected with the power supply problems in Mindanao. “There is nothing to worry.
It also has no relation with the bigger problems in the energy sector,” Coloma said in Filipino.
While Palace officials downplayed the Malacañang outage, they may be in for a bigger problem in Mindanao.
Off The Grid
STEAG State Power, Inc. (SPI), a coal-fired power plant in Villanueva, Misamis Oriental, and the biggest power plant in Mindanao, remains off the grid after failing to upload a total of 210 megawatts since the widespread blackout last February 27.
Jerome Soldevilla, communications officer of SPI, said Units 1 and 2 of STEAG State Power, Inc. remain offline after sustaining damage to its turbine generating sets following the reported Mindanao grid systems disturbance last February 27.
Each unit has a net generating capacity of 105 MW.
With this development, more blackouts are feared in the region. Soldevilla said SPI has yet to complete the ongoing comprehensive inspection and assessment of the turbine generating sets and expects to come up with a more definite schedule and time table for the actual repair and restoration works in the next few days.
SPI power plant manager Dr. Carsten Evers said the repair of the units may last for several weeks or more.
Based on the initial results of the ongoing inspection and comprehensive technical evaluation of the turbine units, SPI will need substantial amount of time to restore the units back on line.
Dr. Evers said, “We understand and recognize the precarious and very volatile power supply condition of Mindanao and we would like to assure all our stakeholders especially the power consumers that SPI is working round-the-clock to restore the units back on line.”
SPI has vowed to provide periodic updates on the progress and development of the restoration work and is working closely with the Department of Energy (DOE), the National Power Corporation (NPC), and other members of the energy sector of Mindanao in addressing the issue.
Bite The Bullet
Residents of power-strapped Mindanao may have no choice but to bite the bullet for now and pay higher electricity rates, or else have no electricity at all. Zamboanga City Rep. Celso Lobregat stressed this in a news forum yesterday at the House of Representatives.
He said the region currently suffers through rotational brownouts of six to nine hours daily. “Our problem in Mindanao, especially in Zamboanga, for the past few days is the six to nine hour brown outs. And the reason is the shortage in supply,” Lobregat said.
According to him, there simply isn’t enough power plants to meet the region’s demands, and the existing plants there are either not running or are performing under-capacity.
“It was clear [during the Energy Summit] that there is really a shortage in supply right now. For the shortage to be addressed in the short-term, the only answer is modular generator sets. But of course that would mean higher cost of electricity,” Lobregat said.
The use of modular generator sets, to be procured by the electric cooperatives in Mindanao, could result to a hike of P2 per kilowatt hour in electricity costs, according to the Zamboanga lawmaker.
“For the long term, new power plants must come in. There are indicative projects that are already in the pipeline and there are projects still coming in. The only time that supply will outpace demand is by February or March, 2015.”
Lobregat said that the energy projects committed to the Mindanao grid include a 300-megawatt (MW) Therma South Inc. coal-fired plant in Davao del Sur, as well as another 200-MW coal-fired plant this time in Saranggani province.
The Therma South plant is expected to be online by 2015.
Technical Problem
In Malacañang, officials said the first power interruption occurred prior to the start of the oath-taking of 49 newly promoted military officers in the Palace. Electricity was restored a few minutes in time for the ceremony.
The second outage struck when the President was leading a photo session with the new officers and their families.
Lights from the large chandeliers at the Rizal Hall went out, except for the wall lamps surrounding the room.
Leading the list of new military officers who took their oath before President Aquino is Army chief Major Gen. Hernando Iriberri. Among the oath-takers are Presidential Security group commander Commodore Raul Ubando, Armed Forces spokesman Major. Gen. Domingo Tutaan, ISAFP chief Major Gen. Eduardo Año, North Luzon Command commander Lt. Gen. Gregorio Catapang Jr., Eastern Mindanao Command chief Lt. Gen. Ricardo Rainier Cruz, and Philippine Military Academy Superintendent Major Gen. Oscar Lopez.
Despite trying to address a similar power supply problem in Mindanao, President Aquino did not lose his cool. Instead, the Chief Executive smiled and cheered with the Palace guests when the lights were restired at the main ceremonial hall. With lights back on, the photo session with the President resumed. source
Manila Bulletin
by Genalyn D. Kabiling, Camcer Ordoñez Imam and Ellson A. Quismorio
March 5, 2014
The power problem that has been gripping Mindanao failed to spare the country’s seat of power.
Yesterday, two power interruptions hit a Malacañang event attended by President Benigno S. Aquino III in succession. Presidential Communications Operations Secretary Herminio Coloma Jr. explained that the power interruptions were caused by a “minor technical problem” in the Palace power lines, adding the matter has already been addressed.
Coloma denied that the incident was connected with the power supply problems in Mindanao. “There is nothing to worry.
It also has no relation with the bigger problems in the energy sector,” Coloma said in Filipino.
While Palace officials downplayed the Malacañang outage, they may be in for a bigger problem in Mindanao.
Off The Grid
STEAG State Power, Inc. (SPI), a coal-fired power plant in Villanueva, Misamis Oriental, and the biggest power plant in Mindanao, remains off the grid after failing to upload a total of 210 megawatts since the widespread blackout last February 27.
Jerome Soldevilla, communications officer of SPI, said Units 1 and 2 of STEAG State Power, Inc. remain offline after sustaining damage to its turbine generating sets following the reported Mindanao grid systems disturbance last February 27.
Each unit has a net generating capacity of 105 MW.
With this development, more blackouts are feared in the region. Soldevilla said SPI has yet to complete the ongoing comprehensive inspection and assessment of the turbine generating sets and expects to come up with a more definite schedule and time table for the actual repair and restoration works in the next few days.
SPI power plant manager Dr. Carsten Evers said the repair of the units may last for several weeks or more.
Based on the initial results of the ongoing inspection and comprehensive technical evaluation of the turbine units, SPI will need substantial amount of time to restore the units back on line.
Dr. Evers said, “We understand and recognize the precarious and very volatile power supply condition of Mindanao and we would like to assure all our stakeholders especially the power consumers that SPI is working round-the-clock to restore the units back on line.”
SPI has vowed to provide periodic updates on the progress and development of the restoration work and is working closely with the Department of Energy (DOE), the National Power Corporation (NPC), and other members of the energy sector of Mindanao in addressing the issue.
Bite The Bullet
Residents of power-strapped Mindanao may have no choice but to bite the bullet for now and pay higher electricity rates, or else have no electricity at all. Zamboanga City Rep. Celso Lobregat stressed this in a news forum yesterday at the House of Representatives.
He said the region currently suffers through rotational brownouts of six to nine hours daily. “Our problem in Mindanao, especially in Zamboanga, for the past few days is the six to nine hour brown outs. And the reason is the shortage in supply,” Lobregat said.
According to him, there simply isn’t enough power plants to meet the region’s demands, and the existing plants there are either not running or are performing under-capacity.
“It was clear [during the Energy Summit] that there is really a shortage in supply right now. For the shortage to be addressed in the short-term, the only answer is modular generator sets. But of course that would mean higher cost of electricity,” Lobregat said.
The use of modular generator sets, to be procured by the electric cooperatives in Mindanao, could result to a hike of P2 per kilowatt hour in electricity costs, according to the Zamboanga lawmaker.
“For the long term, new power plants must come in. There are indicative projects that are already in the pipeline and there are projects still coming in. The only time that supply will outpace demand is by February or March, 2015.”
Lobregat said that the energy projects committed to the Mindanao grid include a 300-megawatt (MW) Therma South Inc. coal-fired plant in Davao del Sur, as well as another 200-MW coal-fired plant this time in Saranggani province.
The Therma South plant is expected to be online by 2015.
Technical Problem
In Malacañang, officials said the first power interruption occurred prior to the start of the oath-taking of 49 newly promoted military officers in the Palace. Electricity was restored a few minutes in time for the ceremony.
The second outage struck when the President was leading a photo session with the new officers and their families.
Lights from the large chandeliers at the Rizal Hall went out, except for the wall lamps surrounding the room.
Leading the list of new military officers who took their oath before President Aquino is Army chief Major Gen. Hernando Iriberri. Among the oath-takers are Presidential Security group commander Commodore Raul Ubando, Armed Forces spokesman Major. Gen. Domingo Tutaan, ISAFP chief Major Gen. Eduardo Año, North Luzon Command commander Lt. Gen. Gregorio Catapang Jr., Eastern Mindanao Command chief Lt. Gen. Ricardo Rainier Cruz, and Philippine Military Academy Superintendent Major Gen. Oscar Lopez.
Despite trying to address a similar power supply problem in Mindanao, President Aquino did not lose his cool. Instead, the Chief Executive smiled and cheered with the Palace guests when the lights were restired at the main ceremonial hall. With lights back on, the photo session with the President resumed. source
Repair of damaged Misamis power plant to take several weeks – DOE
By Iris Gonzales (The Philippine Star) | Updated March 5, 2014 - 12:00am
MANILA, Philippines - The 210-megawatt Steag State Power coal-fired power plant in Misamis Oriental in northern Mindanao remains offline after an island-wide power outage hit Mindanao on Feb. 27.
It would take several weeks to repair the plant, a situation that would continue to cause two- to three-hour rotating blackouts in Mindanao.
“It’s not yet online and there’s no date yet (on when it will be online) but according to them it will take weeks,” Energy Secretary Carlos Jericho Petilla said.
In a separate advisory, Steag communication officer Jerome Soldevilla said the plant’s turbine generator sets sustained damage.
“The Steag coal-fired power plant remains offline after sustaining damage to its turbine generator sets last Thursday. It will take several weeks or more to restore the units back online. Rest assured that we are doing our best and working round the clock to restore the units and help ease up the precarious power supply in Mindanao,” he said.
At 3:53 a.m. on Feb. 27, an island-wide power outage gripped Mindanao, a region of 25 million people, stemming from the tripping of the Agus 1 hydroelectric power plant in Marawi City.
The National Power Corp. (Napocor), which owns the Agus plants, said it continues to cooperate with the joint investigation of the Department of Energy (DOE) and National Transmission Corp. (TransCo) on the blackout.
“Napocor has already submitted the data logs of its power plants in Mindanao to the DOE, and will respect whatever findings the joint committee assigned on the investigation may come up with,” Napocor president Gladys Sta. Rita said.
At present, Napocor and the National Grid Corp. of the Philippines, the grid operator, are closely collaborating with each other to reconcile their respective data on the incident to ensure timely completion of the joint investigation.
“We are working closely with other electric power stakeholders in order to ensure the seamless operations of the state-owned power plants in Mindanao that contribute to the power supply adequacy and reliability of the Mindanao grid,” Sta. Rita said. source
MANILA, Philippines - The 210-megawatt Steag State Power coal-fired power plant in Misamis Oriental in northern Mindanao remains offline after an island-wide power outage hit Mindanao on Feb. 27.
It would take several weeks to repair the plant, a situation that would continue to cause two- to three-hour rotating blackouts in Mindanao.
“It’s not yet online and there’s no date yet (on when it will be online) but according to them it will take weeks,” Energy Secretary Carlos Jericho Petilla said.
In a separate advisory, Steag communication officer Jerome Soldevilla said the plant’s turbine generator sets sustained damage.
“The Steag coal-fired power plant remains offline after sustaining damage to its turbine generator sets last Thursday. It will take several weeks or more to restore the units back online. Rest assured that we are doing our best and working round the clock to restore the units and help ease up the precarious power supply in Mindanao,” he said.
At 3:53 a.m. on Feb. 27, an island-wide power outage gripped Mindanao, a region of 25 million people, stemming from the tripping of the Agus 1 hydroelectric power plant in Marawi City.
The National Power Corp. (Napocor), which owns the Agus plants, said it continues to cooperate with the joint investigation of the Department of Energy (DOE) and National Transmission Corp. (TransCo) on the blackout.
“Napocor has already submitted the data logs of its power plants in Mindanao to the DOE, and will respect whatever findings the joint committee assigned on the investigation may come up with,” Napocor president Gladys Sta. Rita said.
At present, Napocor and the National Grid Corp. of the Philippines, the grid operator, are closely collaborating with each other to reconcile their respective data on the incident to ensure timely completion of the joint investigation.
“We are working closely with other electric power stakeholders in order to ensure the seamless operations of the state-owned power plants in Mindanao that contribute to the power supply adequacy and reliability of the Mindanao grid,” Sta. Rita said. source
Govt urges Mindanao factories to use gensets
Manila Standard Today
By Alena Mae S. Flores | Mar. 05, 2014 at 12:01am
The Energy Department is set to issue a directive that will free up around 100 megawatts of generating capacity in Mindanao in the wake of the outage of the 210-MW coal power plant of Steag State Power Inc. in Misamis Oriental.
“We are issuing a circular instructing the operation of all existing generating capacity in Mindanao to be used as ILP [Interruptible Load Program], embedded or IMEM [Interim Mindanao Electricity Market] participant,” Energy Secretary Carlos Jericho Petilla told reporters.
Under the ILP, a distribution utility and a participating customer such as malls, factories and other large power users can agree on a “de-loading” from the grid and the use their genset capacity instead.
The IMEM, meanwhile, is the interim market where power generators can offer their capacity to Mindanao electric cooperatives and distribution utilities.
Steag officials said the plant might take weeks to restore.
The Mindanao power plant encountered “technical problems” in the turbine generator shortly after the systemwide blackout in Mindanao last week.
Steag said it could not determine yet the full restoration of the facility pending the completion of a technical assessment and thorough inspection. source
By Alena Mae S. Flores | Mar. 05, 2014 at 12:01am
The Energy Department is set to issue a directive that will free up around 100 megawatts of generating capacity in Mindanao in the wake of the outage of the 210-MW coal power plant of Steag State Power Inc. in Misamis Oriental.
“We are issuing a circular instructing the operation of all existing generating capacity in Mindanao to be used as ILP [Interruptible Load Program], embedded or IMEM [Interim Mindanao Electricity Market] participant,” Energy Secretary Carlos Jericho Petilla told reporters.
Under the ILP, a distribution utility and a participating customer such as malls, factories and other large power users can agree on a “de-loading” from the grid and the use their genset capacity instead.
The IMEM, meanwhile, is the interim market where power generators can offer their capacity to Mindanao electric cooperatives and distribution utilities.
Steag officials said the plant might take weeks to restore.
The Mindanao power plant encountered “technical problems” in the turbine generator shortly after the systemwide blackout in Mindanao last week.
Steag said it could not determine yet the full restoration of the facility pending the completion of a technical assessment and thorough inspection. source
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