DOE to Meralco: What Luzon power shortage?

MANILA, Philippines – The Department of Energy (DOE) debunked the warning of Manila Electric Co. (Meralco) officials that a power shortage in Luzon looms in 2016.

In a statement on Thursday, January 30, the DOE said there are 868 megawatts (MW) additional power supply from new power plants committed to be added to the Luzon grid by 2016 — more than the required additional capacity of 500 MW needed to ensure Luzon will not experience blackouts.

This was the same message DOE Secretary Jericho Petilla reportedly told President Benigno Aquino III during a brief meeting on Thursday, a day after Meralco officials mentioned during an investment briefing in Makati City that without new power plants installed, shortages may occur.

The DOE agreed with Meralco that demand is expected to peak from 2013 to 2015. The agency said the peak demand in Luzon grid is indeed expected to increase at an annual average rate of 4.13% from 7,969 megawatt (MW) in 2012 to 16,477 MW in 2030. Based on this, correspondingly, the grid will require an additional 500 MW by 2016 and 8,100 MW by 2030.

“In response to Meralco’s statement that Luzon grid will experience power shortage due to the lack of new power plants coming in, the Department of Energy notes that in the 2012 Power Development Plan (PDP), peak demand in Luzon grid is expected to increase…The PDP assumes that there are committed power projects that are expected to be on line starting 2013 until 2015,” it said.

For 2013, the DOE said the following power facilities are committed to be up and running: 

• 600 MW GN Power in Bataan that will be on commercial operation by May
• 21 MW bunker power plant of CIP II Power Corp in Laguna was fired up last January 17 
• 67.5 MW Pililia Wind; 
• 1.2 MW Payatas Landfill & Methane Recovery and Generation Facility by Pangea by March 2013
• 13 MW Green Future Biomass was operational since November 2012 but not in full capacity

In 2014, the committed project is the 20 MW Maibarara Geothermal project in Batangas, and in 2015, the 135 MW Puting Bato Coal Phase 1 and the 11 MW SJCI Power Rice Husk will be fired up.

“In addition to new power plants, there are also rehabilitation of power plants that will add capacity to the grid, these are: 130 MW additional capacity from Bacman Geothermal and 5 MW per year, starting 2012 up to 2015, from Binga hydro uprating,” added the DoE.

Meralco chairman Manuel Pangilinan had warned that Luzon may experience power shortage if no new power facilities are installed.

“We do need more power plants in the country. The margin of (supply) safety in Luzon is very very tight and unless we fire up our oil-fired plants, we will experience brownout in Luzon,” Pangilinan said during the Philippine Economic Summit 2013.

Meralco president Oscar Reyes also anticipates that there would be “increasing tightness in 2013-2016 until new power generating plants come in.” – Rappler.com