Meralco asks malls, factories to use gen sets when supply is tight

MANILA, Philippines – Power distributor Manila Electric Company (Meralco) is urging large power consumers to use their own generator sets when supply is tight during the summer months.

Meralco invited over 100 companies with large generator sets to participate in the Interruptible Load Program (ILP).

Meralco Senior Assistant Vice President and Utility Economics Head Larry Fernandez said, “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.”

Under ILP, customers with large loads like factories, malls and other commercial establishments will be asked to operate their own generator sets when the grid operator projects a shortfall in supply.

Those that will use their generator sets will be compensated an amount to be determined by regulators. The cost will be passed on to customers of Meralco.

As part of preparations for implementing ILP, a dry-run was conducted on April 1 in cooperation with SM malls. The one-hour dry-run resulted in a 4.4 megawatt (MW) reduction in grid load.

The program is being introduced in coordination with the Department of Energy. “We are constantly updating the relevant agencies for a seamless implementation of ILP,” said Fernandez.

Energy Undersecretary Raul Aguilos said, “we are encouraging the ILP as it provides distribution utilities such as Meralco an option of last resort to meet its power requirements.”

Below are Meralco’s supply and peak demand forecasts this summer:

April
Luzon – peak demand 8,504 MW, available capacity 9,571 MW
Visayas – peak demand 1,526 MW, available capacity 1,663 MW
Mindanao – peak demand 1,362 MW, available capacity 1,264 MW

May
Luzon – peak demand 8,654 MW, available capacity 9,689 MW
Visayas – peak demand 1,554 MW, available capacity 1,679 MW
Mindanao – peak demand 1,400 MW, available capacity 1,432 MW

Contingency measures

Meralco signed interim power supply agreements with 3 power producers to mitigate its exposure to the Wholesale Electricity Spot Market this summer.

These power producers include Toledo Power Corporation, which will supply Meralco up to 28 MW; Panay Power Corporation, which will supply up to 27 MW; and 1590 Energy Corporation, which will sell up to 140 MW.

Meralco is sourcing power from these producers until June to ensure steady supply in Luzon. – Rappler.com