Power producers commit 3K megawatts to Luzon grid until 2017

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Power producers commit 3K megawatts to Luzon grid until 2017
Meralco has also signed 150 MW of committed interruptible load capacity from various ILP participants

MANILA, Philippines – Power producers have committed to supply the Luzon grid a total of 2,942.03 megawatts (MW) of rated capacity between now up to 2017.

The Luzon grid is anticipated to be in need of 900 MW next year, higher than the previous estimate of 800 MW, owing to the delay of the 150 MW coal power plant expansion project of DMCI Holdings.

In a list of private sector-initiated committed power projects in Luzon, the coal power projects amount to 1,372 MW; natural gas, 1,150 MW; hydro, 34.3 MW; solar, 50 MW; wind, 254.40 MW; and biomass, 81.33 MW.

The Department of Energy (DOE), in separate data submitted before the Senate last week, said it was looking at adding 156 MW of additional capacity for Luzon in time for the summer months of 2015.

These will come from the 100 MW power project of First Gen Corp.’s Avion power plant that is expected to come online by April; the 36 MW from Millennium Energy’s Limay plant by March; and the 20 MW from the rehabilitated Bauang plant by March.

ILP commitment increased

Also on Monday, the Manila Electric Company (Meralco) reported that its committed interruptible load (CIL) capacity is now up to 149.5 MW from Thursday’s 146 MW.

Lawrence Fernandez, Meralco head for utility economics said that the Fort Bonifacio Development Corp. and Trafalgar Plaza Condo have now signed up as Interruptible Load Program (ILP) participants.

The growing number of CIL capacity would help the government address the power shortage anticipated next year.

In a list, SM Prime Holdings, Inc. committed 57.96 MW, the highest among the ILP participants; Robinsons Land Corporation, 23.15 MW; Waltermart malls, 14.30 MW; Ayala Land Inc., 9 MW; Rustans Supercenters, Inc., 8.66 MW; Shangri-La Plaza Corp., 7 MW; Alphaland Development, Inc., 4. 5MW; Megaworld Corp., 4 MW; and Ortigas & Company, 4 MW.

Meralco is currently in discussions for 69.9 MW CIL from new participants like the Philippine Daily Inquirer and the Guadalupe Commercial Complex, Fernandez said.

ILP is still seen as a viable solution to help solve the power supply deficiency anticipated in the summer months of 2015 after the Senate, during the Technical Working Group (TWG) meeting on Thursday, told Energy Secretary Carlos Jericho Petilla that Congress is not keen on authorizing President Benigno Aquino III the special powers he seeks. (READ: Belmonte: Aquino to have emergency powers before 2014 ends)

Meralco proposed the ILP, a scheme where energy users with large loads, such as business establishments and factories, will be required to run their standby generator sets to ease the demand for power from the grid during peak hours.

With the ILP, power supply from the grid that will not be consumed by participating customers will be available for use by other customers within the franchise area. (READ: Meralco customers to pay for ILP?)

The current ILP commitments have reached up to 435 MW. This can account for only 7% of Meralco’s peak demand of 5,500 MW, thus Senator Sergio Osmeña III challenged Meralco to get at least 10% or 550 MW of capacity.

Conserve energy

The DOE is asking all residential and commercial establishments, including public facilities, to implement demand side management programs and other energy conservation measures to reduce the country’s demand for supply of electricity.

“When adequate ventilation is available, all government agencies and offices shall discontinue the use of their air-conditioning units when weather permits, provided that in cases where air-conditioned units are to be used, the thermostat shall be set to not lower than 25 degrees,” stated the agency’s circular. – Rappler.com

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