Meralco sees tight power supply in 2016

MANILA, Philippines –The Manila Electric Company (Meralco) is seeing tight power supply in 2016 because the plants that are originally scheduled for maintenance shutdown in the first 6 months will be moved to the second half of 2016.

“Everybody is trying to avoid a scheduled shutdown during election. This may put some tightness in supply based on their maintenance schedule,” Meralco President Oscar Reyes said.

Reyes did not identify these power plants as the list is still being finalized.

To avert a possible power supply problem, Meralco will tap an additional interim supply of around 240 megawatts (MW).

“That’s the reason why we’re trying to contract the interim power supply agreements,” Reyes said.

Meralco earlier received separate proposals from 1590 Energy Corporation, a unit of publicly listed Vivant Corporation; Toledo Power Corporation (TPC); and Panay Power Corporation (PPC).

PPC and TPC are both units of Global Business Power Corporation (GBPC) which proposed to supply Meralco a total of 73MW. Of which, 45MW will be supplied by PPC and the remaining 28MW from TPC. 1590 Energy proposed to supply Meralco 170MW.

Reyes said the 3 proposals cover “peaking plants to partly supply Meralco’s power requirements from February to July next year.”

“We would like to put these proposals to price challenge. We are prepared to accept those terms,” Reyes said.

Reyes said Meralco “can use all 3” but these are still subject to the approval of the Energy Regulatory Commission (ERC).

Reyes also said that participants of the interruptible load program (ILP) can be tapped to manage demand during the period.

The ILP has generated commitment from power users such as mall operators, commercial and industrial buildings, and other industries to deload and not draw power from the grid and utilize their generating sets.

These ILPs have a combined capacity of around 800MW.

Power projects

Reyes also enumerated the power projects that are expected to be completed next year.

Among the projects lined up for completion in 2016 include the Southwest Luzon Power Generation Corporation’s 300MW coal plant; San Miguel Corporation’s 150MW Limay power plant; several solar power projects; 100MW Avion power plant; and 450MW San Gabriel power plant of First Gen Corporation.

These projects that are expected to come on line next year would help avoid any power outage if finished on time.

Thus, Reyes urged concerned government agencies to ensure the timely commercial operation of these plants. – Rappler.com