DOE: No plant shutdowns in summer 2015

MANILA, Philippines – No power plants will be allowed to schedule their maintenance shutdown during the summer of 2015 to prevent shortage and power outages.

The Department of Energy (DOE) is formalizing a directive in a bid to avert a potential power crisis by prohibiting power firms from undergoing maintenance shutdowns in the summer months next year.

Based on projections, the Philippines will face an energy deficit of 200 megawatts (MW) next year.

The energy department said an additional 400 to 500 MW is needed during the peak months of March to May 2015, when demand for electricity is high and supply is thin.

DOE Secretary Carlos Jericho Petilla said some power firms will likely seek an exemption to the department’s directive. “However, we will scrutinize them with utmost vigilance. The outlook for 2015 already considered this directive,” he said.

The Malampaya natural gas facility, which produces gas to supply three power plants in Luzon, is scheduled to go offline for maintenance from March to April. 

To augment Luzon’s power requirements, Petilla has proposed contracting additional capacity from power generators.

The DOE has asked the Joint Congressional Power Commission (JCPC) to allow the government, through the Power Sector Assets and Liabilities Management Corp. (PSALM), to contract additional power capacity within the framework of Republic Act 9136.

The department is currently in talks to lease additional power capacity from First Gen Corporation from its Avion power plant in Batangas City. 

If this is allowed, Petilla said there would be no need to invoke emergency powers to address power supply problems.

In July, Petilla recommended to Benigno Aquino III to invoke Section 71 of the Electric Power Industry Reform Act (EPIRA) to address the looming power supply problem by 2015.

EPIRA prohibits the government from putting up power plants.

However, Section 71 of the law states that the President, upon determination of an imminent shortage of supply of electricity, may ask Congress for authority to establish additional generating capacity under approved terms and conditions.

Aside from contracting additional capacity, Petilla has also proposed the Interruptible Load Program (ILP), in which commercial establishments with large energy loads will be asked to use their own generator sets if needed.

The ILP will help ensure that the aggregate demand for power in the Luzon grid will be kept to a more manageable level.

“If we can get all the capacity from ILP, then the government does not really have to lease or rent power capacity,” Petilla said. – Rappler.com