Manila Electric Co. plans to secure 500 MW in power by this summer
Los Banos, Philippines (source: flickr/ ReverendMungo, creative commons)
Francisco Rojas
17 Nov 2014
Manila Electric Co. plans to secure 529 MW of interim power supply agreements and also intends to tap up to 50 MW from AP Renewables, Inc.’s 458-MW Makban geothermal plant to supply growing demand in the country.
According to local news, Manila Electric Co. (Meralco) plans to secure additional capacities of more than 500 megawatts (MW) to meet the growing demand of its customers for the summer months of next year.
“We’re signing about 529 MW of interim power supply agreements (IPSAs),” Meralco President Oscar S. Reyes told reporters on the sidelines of Asia CEO Awards in Parañaque City on Wednesday night.
Metro Manila’s lone electricity distributor will contract a portion of power plant capacities owned by Global Business Power Corp. (Global Power); 1590 Energy, Inc., and Panasia Energy, Inc. — the same companies Meralco tapped for the summer months of this year in anticipation of higher demand.
At the same time, Meralco also intends to tap up to 50 MW from AP Renewables, Inc.’s 458-MW Makban geothermal plant.
“We’re signing contracts with Global Power, Bauang and Limay. We will also sign with Makban for additional 50 MW, which is a new one,” Mr. Reyes said.
Mr. Reyes said the IPSAs were intended to be effective during the summer months of 2015 only.
Besides IPSAs, the official said Meralco is also keen to sign up around 500 MW under the interruptible load program (ILP) to help address the anticipated supply deficit next year. Under the ILP, big establishments will be asked to run their own generating sets in times of shortage in exchange for compensation.
“With ILP, we’ll continue working to get around 400-500 MW. Right now, we’ve signed up over 300 MW. Hopefully more since there’s a lot more outside the franchise area,” he said.
He also noted that these capacities already include contestable customers located within its franchise area, or those that have their own retail electricity supplier. Under retail competition and open access, big power consumers with at least 1 MW capacity were given the option to seek their own suppliers. Mr. Reyes said Meralco is also looking at government offices for the ILP, but no deals have been signed yet.
Asked if Meralco is confident about avoiding power outages next year, at least within its franchise area, Mr. Reyes said: “A lot depends on whether the existing plants will run properly,” Mr. Reyes said.
“The DoE (Department of Energy) cleared March to June of maintenance shutdown other than Malampaya so at least scheduled shutdowns, we’re okay,” he added.
“The forced outages, we can’t say but we’re hoping that the plants will operate under good conditions,” Mr. Reyes said.
The Energy department projected a 900-MW deficiency in a worst-case scenario that could strike Luzon in the second week of April next year. The agency later revised the power outlook to show the island — which is estimated to contribute 70% to gross domestic product — would need at least 678 MW — covering both shortages and minimum reserves.
Late last month, President Benigno S. C. Aquino III said time has run out for the government to contract additional capacity with the two chambers of Congress yet to come up with a joint resolution authorizing the move. Mr. Aquino invoked the power crisis provision of the Electric Power Industry reform Act of 2001 last September after the Energy department announced a power shortage from March to June 2015.
Given the current scenario, the government is now focusing on its other options, which include the ILP, energy conservation measures and fast-tracking of power projects that could help augment supply by summer. Meralco distributes electricity in Metro Manila, Bulacan, Cavite and Rizal, as well as parts of Batangas, Laguna, Quezon and Pampanga.
Source: Business World Online
