APRIL 26, 2013

26 Apr

In Mountain Province, 4 hydro plants to go online in ’16

 
8:27 pm | Thursday, April 25th, 2013

Four hydro power plants are set to supply electricity to the Mountain Province by March 2016, having obtained government incentives, the Board of Investments (BOI) reported on Thursday.

To date, the province does not have a single power generating facility of its own.

The power facilities have a combined power capacity of 10.55 megawatts (MW).

The 2.4-MW Dicapan hydropower project in Barangay Lubon, Tadian town, will be constructed at a cost of P369.8 million. It is expected to generate an aggregate of 8,697,000 kilowatt hours (kWh) of electricity a year.

The P400.7-million Upper Siffu hydropower project with 2.75 MW power capacity in Barangay Balangao, Natonin town is expected to produce 9,630,000 kWh of electricity annually.

The 3.0-MW Lower Siffu hydropower project worth P426.8 million, also in Barangay Balangao, is projected to produce 9,900,000 kWh of electricity yearly.

Also, the P449-million 2.4-MW Tanudan hydropower project in Barangay Lias, Barlig town will generate a total of 11,720,000 kWh of electricity a year.

Each project will employ 17 personnel. All four are scheduled to begin operations simultaneously in March 2016, BOI said.

The hydropower projects are projected to supply electricity to the Mountain Province which, to date, has no single power generating facility of its own.

The BOI said the Mountain Province has only one distribution utility, the Mountain Province Electric Cooperative (Mopreco).

It is responsible for the distribution of electricity to consumers in the province while the National Grid Corp. of the Philippines (NGCP) takes care of the transmission lines.

The renewable energy sector is one of the priority activities in the Investments Priorities Plan (IPP). The BOI spearheads the interagency effort to annually craft the IPP. The IPP is specially formulated to attract more investments and mobilize private capital in key areas of the economy.

The installation and expansion of renewable energy is a critical factor in sustaining the energy supply of the country. The government aims to triple its existing renewable energy capacity of 5,438 MW to 15,304 MW by 2030 as part of the National Renewable Energy Program.

Over the years, renewable energy has evolved into a major contributor of the country’s primary energy supply. It accounted 57.5 percent of the energy needs as of 2010, based on Department of Energy figures. Hydro energy dominates the RE sector as it already comprised over 60 percent of the RE output as of 2010.  Riza T. Olchondra

Solar-energy firm may hold answer to power crisis

Category: Regions
Published on Thursday, 25 April 2013 19:10
Written by Bong D. Fabe / Correspondent
CAGAYAN DE ORO CITY—A Filipino company that provides renewable-energy solutions for all types of property owners said that solar energy is still the best option to solve the so-called Mindanao power crisis.

The thumbing down by the Department of Energy of solar energy as a solution to the power crisis in southern Philippines is “not a hindrance or a barrier” in the pursuit of lasting and ultimately cheaper power sources in Mindanao, said Winston Lorenzana Mendoza, chief executive officer of Mendoza Solar Llc.

The company is an energy firm registered in California and Nevada, USA. It provides renewable-energy solutions for all types of property owners. Its Philippine subsidiary, Lim Solar Philippines, is the biggest promoter in the country of the use of state-of-the-art portable fuel cell electric systems that address base energy needs, especially of remote areas.

Lim Solar, which is also chaired by Mendoza, has an ongoing solar integration and development projects with De La Salle University, the Subic Bay Metropolitan Authority and Camp Aguinaldo, among others.

Another company under the Mendoza Group, the Lorenzana Energy International—a provider of global energy solutions—also has ongoing solar integration and development projects in Malaysia, Hawaii, Guam, California and Nevada.

“Solar energy as well as other renewable-energy sources is very appropriate for Mindanao if we look at the long term and the impact of climate change, which exacerbates natural phenomena such as typhoons and storms. For the last several years, Mindanao is now the favorite of natural disasters, whose impacts were exacerbated by climate change-inducing fossil fuels. We can no longer afford to let Mindanao suffer. Solar energy is abundant in the island and it provides clean energy,” Mendoza said.

Mendoza said that for Mindanao, Lim Solar is willing to offer electric cooperatives very minimal prices for solar power as well as a 100-percent financing scheme for residential and small businesses.

“For Mindanao, I will offer P7.47 per kWh to the electric cooperatives and large megawatt level users and P8.50 to small users. I will also straight finance the residentials and small businesses,” he said.

Mendoza said he will be in Cagayan de Oro City on May 3 for a “lunch and learn” session with decision-makers in Mindanao.

“I am now concentrating in Mindanao because of the energy crisis,” he said.

MINDANAO POWER CRISIS | ERC approves P34.25 million budget to set up electricity market

By: Euan Paulo C. Añonuevo, InterAksyon.com
April 24, 2013 1:07 PM

 MANILA – The Energy Regulatory Commission (ERC) approved the use of fees collected from Luzon participants in the Wholesale Electricity Spot Market (WESM) to set up an interim market in Mindanao.

In a decision, the ERC allowed the Philippine Electricity Market Corp (PEMC) to use P34.25 million in unused fees collected from Luzon WESM participants to set up the Interim Mindanao Electricity Market (IMEM).

The ERC initially approved a P24.26 million budget for IMEM, which like WESM aims to provide power plant operators a venue to trade their excess capacity.

PEMC, which operates the WESM in Luzon and the Visayas, had been mandated by the government to run the IMEM.

“Based on the supporting documents submitted by PEMC, the ERC found it prudent to grant only a budget of P19.99 million for technical services consultancy,” the ERC said.

The amount PEMC will use for the IMEM will be refunded to the spot market participants. Market fees are the costs of administering and operating the WESM.

The government is banking on the establishment of the IMEM to help ease Mindanao’s power crisis in the short-term while waiting for the completion of power plants, many of which will come on stream in 2015.

Besides giving power plants and other entities the opportunity to sell their available supply, the IMEM features a day-ahead pricing market where electric cooperatives are supposed to submit their bids or offers a day before the actual delivery or curtailment of energy. Curtailment refers to cutting off electricity because of limited power supply.

 Psalm resumes auction of 145.8-MW Naga power plant complex in Q2

 Category: 

Economy

Published on Tuesday, 23 April 2013 20:58
Written by Lenie Lectura / Reporter

THE Power Sector Assets and Liabilities Management (Psalm) Corp. said on Tuesday it will resume the auction of the 145.8-megawatt (MW) Naga Power Plant Complex (NPPC) in the second half of the year.

President and Chief Executive Officer Emmanuel R. Ledesma Jr. said the Psalm board gave the go-signal to proceed with the sale following the green light from the Department of Justice (DOJ), which confirmed in a January opinion that the “right-to-top” provision included in Psalm’s bidding documents was not in violation of the rules on competitive bidding.

“The opinion rendered by the DOJ confirmed Psalm’s previous assertions regarding the sale of the NPPC, and therefore we can now prepare for its bidding,” Ledesma said.

In 2011 Psalm deferred the bidding for the NPPC upon the request of the Joint Congressional Power Commission over an allegedly unfair and illegal condition known as a “right to top” the highest bid previously granted to SPC Power Corp. (SPC) in the Land Lease Agreement (LLA) executed among Psalm, National Power Corp. and SPC in 2009.

The LLA was executed pursuant to the Asset Purchase Agreement for the Naga Land-based Gas Turbine (LBGT) acquired by SPC through public bidding.

In the agreement, SPC was granted the right to top the highest bid on the sale or lease of the properties within the vicinity of the LBGT to give the winning bidder the opportunity to expand, subject to the payment of a premium of 5 percent over the highest bid on said adjacent properties. The NPPC is located in the vicinity of the LBGT.

Ledesma added that the NPPC will be privatized without any assigned power supply contract or as a merchant plant. The sale will also exclude the land underlying the NPPC.

The NPPC consists of three thermal power plants that use a combination of diesel, bunker C oil, and coal as fuel. These are the coal-fired 50-MW Cebu Thermal Power Plant 1 and 56.8-MW Cebu Thermal Power Plant 2; and the 39-MW Cebu Diesel Power Plant 1, which consists of six diesel-fed power units with a capacity of 6.5 MW each.

Psalm has set a budget of P319.389 million for the contract.

For now, the power plant is being operated and maintained by SPC, a consortium of local and foreign investors including Korea Power Corp., Korea’s largest state-owned power utility company.

Solar-energy firm may hold answer to power crisis

Category: Regions
Published on Thursday, 25 April 2013 19:10
Written by Bong D. Fabe / Correspondent

 CAGAYAN DE ORO CITY—A Filipino company that provides renewable-energy solutions for all types of property owners said that solar energy is still the best option to solve the so-called Mindanao power crisis.

The thumbing down by the Department of Energy of solar energy as a solution to the power crisis in southern Philippines is “not a hindrance or a barrier” in the pursuit of lasting and ultimately cheaper power sources in Mindanao, said Winston Lorenzana Mendoza, chief executive officer of Mendoza Solar Llc.

The company is an energy firm registered in California and Nevada, USA. It provides renewable-energy solutions for all types of property owners. Its Philippine subsidiary, Lim Solar Philippines, is the biggest promoter in the country of the use of state-of-the-art portable fuel cell electric systems that address base energy needs, especially of remote areas.

Lim Solar, which is also chaired by Mendoza, has an ongoing solar integration and development projects with De La Salle University, the Subic Bay Metropolitan Authority and Camp Aguinaldo, among others.

Another company under the Mendoza Group, the Lorenzana Energy International—a provider of global energy solutions—also has ongoing solar integration and development projects in Malaysia, Hawaii, Guam, California and Nevada.

“Solar energy as well as other renewable-energy sources is very appropriate for Mindanao if we look at the long term and the impact of climate change, which exacerbates natural phenomena such as typhoons and storms. For the last several years, Mindanao is now the favorite of natural disasters, whose impacts were exacerbated by climate change-inducing fossil fuels. We can no longer afford to let Mindanao suffer. Solar energy is abundant in the island and it provides clean energy,” Mendoza said.

Mendoza said that for Mindanao, Lim Solar is willing to offer electric cooperatives very minimal prices for solar power as well as a 100-percent financing scheme for residential and small businesses.

“For Mindanao, I will offer P7.47 per kWh to the electric cooperatives and large megawatt level users and P8.50 to small users. I will also straight finance the residentials and small businesses,” he said.

Mendoza said he will be in Cagayan de Oro City on May 3 for a “lunch and learn” session with decision-makers in Mindanao.

“I am now concentrating in Mindanao because of the energy crisis,” he said.

Aboitiz unit to build 2 hydropower plants in Bukidnon

By: Euan Paulo C. Añonuevo, InterAksyon.com
April 25, 2013 5:14 PM

MANILA – A unit of Aboitiz Power Corp will put up two hydroelectric plants in Bukidnon.

In a statement, Hedcor Inc said it has started consultation with local government units in the province for two hydropower plants.

In line with this, Hedcor said it signed a memorandum of agreement with officials of the municipality of Impasug-Ong, barangay Guihean and community leaders for the construction of the project.

The projects are the 32.5-megawatt Manolo Fortich Hydro 1 and 16.4-megawatt Manolo Fortich 2 plants.

The proposed plants will harness water from the Amusig, Guihean and Tanaon rivers to produce almost 300 million kilowatts of electricity per year.

Hedcor, however, did not indicate when it aims to start construction of the facilities, which would help improve Mindanao’s power supply once put up.

Mindanao is suffering from persistent power outages as a result of insufficient power generating capacity, which the government projects to last up to 2015 when coal plants being developed in the region go on stream.

Hedcor is a wholly-owned subsidiary of AboitizPower with a generating capacity of 47 megawatts for Mindanao.

PSALM plans to sell 145MW Naga power plant in 2nd half

Published: April 24, 2013

The Power Sector Assets and Liabilities Management (PSALM) Corporation will resume the sale of the 145.8-megawatt (MW) Naga Power Plant Complex (NPPC) in the second semester.

This comes after the Department of Justice (DoJ) confirmed in an opinion that the “right-to-top” provision included in PSALM’s bidding documents was not in violation of the rules on competitive bidding.

“The opinion rendered by the DOJ confirmed PSALM’s previous assertions regarding the sale of the NPPC, and therefore we can now prepare for its bidding,” PSALM president Emmanuel R. Ledesma, Jr. said.

In 2011, PSALM deferred the bidding for the NPPC upon the request of the Joint Congressional Power Commission over an allegedly unfair and illegal condition known as a “right to top” the highest bid previously granted to SPC Power Corporation (SPC) in the Land Lease Agreement (LLA) executed among PSALM, National Power Corporation and SPC in 2009.

The LLA was executed pursuant to the Asset Purchase Agreement for the Naga Land-based Gas Turbine (LBGT) acquired by SPC through public bidding.

In the Agreement, SPC was granted the right to top the highest bid on the sale or lease of the properties within the vicinity of the LBGT to give the winning bidder the opportunity to expand, subject to the payment of a premium of 5 percent over the highest bid on said adjacent properties. The NPPC is located in the vicinity of the LBGT.

Ledesma added that the NPPC will be privatized without any assigned power supply contract – a merchant plant. The sale will also exclude the land underlying the NPPC.

The NPPC consists of three thermal power plants that use a combination of diesel, bunker oil, and coal as fuel. (JAL)

DOE to present 2013-2030 Philippine Energy Plan in Cebu summit

 By Mars W. Mosqueda Jr.
Published: April 26, 2013

Cebu City, Cebu – The Department of Energy (DoE) is expected to present a draft of the 2013-2030 Philippine Energy Plan in the Visayas Power Summit scheduled to be held in this city today.

The Regional Development Council for Central Visayas (RDC-7) said DoE Secretary Carlos Jericho Petilla will present the energy plan before power stakeholders and the public who will be attending said Summit.

Among the various matters to be taken up in the discussion will be the current energy situation in the country, policy thrusts of the government, outlook on energy supply and demand, reforms in the generation and transmission sectors, renewable energy rates, and retail competition.

Petilla approved the holding of the Summit last March during a consultation meeting with RDC-7 Chairman and Cebu City Mayor Michael Rama and the RDC-7 Secretariat. The hosting of the summit is a collaboration between the RDC-7 and the DoE.

Said Summit, themed “Collective Action Towards Competitive Power in the Visayas,” will also see the presentation of power-related issues not only in Central Visayas but in Western Visayas as well.

The Central Visayas RDC has made efforts to tackle high cost of electricity in the region in executive meetings held twice in 2012 and a planning dialogue and workshop on power issues last January, 2013.

Said meetings have identified at least 20 issues and recommendations have been formulated to address these issues. The power dialogue, meanwhile, listed the holding of a Power Summit as one of the immediate actions needed for implementation.

A power profile prepared by the RDC-7’s subcommittee on power lists high power costs as one of the challenges in the region’s power sector.

“Power rates remain high. This represents financial burden to consumers and at the same time serves as deterrent to the inflow of more investments,” the profile stated.

Today’s power summit will also discuss the regulatory framework of the Energy Regulatory Commission (ERC), which will be presented by ERC Executive Director Francis Saturnino Juan.
Also expected to attend today’s event will be Capiz Governor and RDC 6 Chairman Victor Tanco Sr.

“Let us make good use of this opportunity to present and dialogue our concerns collectively with our energy officials to make the Visayas regions more competitive in terms of providing adequate, reliable, and reasonably-priced power needed for higher growth and development,” said Rama.

Bukidnon hydroelectric

 By Malu Cadelina Manar
Published: April 25, 2013

Kidapawan City – Local officials of Impasug-ong in Bukidnon, and representatives of Hedcor, a wholly-owned subsidiary of the AboitizPower Corporation, have signed a Memorandum of Agreement (MOA) to build two run-of-river hydro-electric power plants in northern Mindanao.

The MOA signing, based on the statement that the AboitizPower issued to the media, signals the start of a more detailed feasibility study for the project.

It was learned that the Manolo Fortich Hydro-1 will have a capacity of 35.2 megawatts (MW), while the Manolo Fortich Hydro-2 will generate 16.4 MW or a total capacity of 51.6 MW.

The river and one of the proposed power plants would pass through the Impasug-ong town, according to the project.

The province of Bukidnon in northern Mindanao is experiencing daily load curtailment.
As this developed, the Hedcor intends to build two cascading plants that will source power from the Amusig, Guihean, and Tanaon rivers.

Bataan open to power ventures

10-Hr. Brownouts Set In NL
By Genalyn D. Kabiling
Published: April 24, 2013

A measure allowing the entry of energy-related businesses inside the industrial estate in Bataan has been signed into law by President Benigno S. Aquino III.

Republic Act No. 10516 expands the use of the industrial estate in Limay, Bataan for businesses engaged in energy and energy-related infrastructure projects apart from existing petrochemical and related industries.

The law, signed last April 17, lifted the restrictions on the Philippine National Oil Company (PNOC) to operate only petrochemical-related enterprises inside the Limay industrial park.

The new measure aims to attract more investors into the underutilized 530-hectare industrial park in order to generate more jobs and boost economic development in the area.

“That particular piece of land can now be utilized for businesses engaged in energy and energy-related infrastructure projects,” Deputy Presidential Spokeswoman Abigail Valte told reporters in the Palace.

The PNOC, which manages the industrial park, previously allowed only petrochemical-related businesses to operate inside the estate. It developed 170 hectares of the industrial park that can accommodate 10 companies.

But since the industrial park was unavailable to investors involved in businesses apart from petrochemicals, only three companies have been holding office since 1995.

Senator Ralph Recto earlier lamented that the Bataan industrial park has not achieved its full financial and commercial potential since it was established in 1995. It has reportedly incurred losses amounting P1.3 billion from 1997 to 2010.

Recto has proposed the implementation of a multi-purpose use of the industrial park to maximize its economic potential.

Meanwhile, four provinces in northern Luzon will be affected by a 10-hour brownout tomorrow, the National Grid Corporation of the Philippines (NGCP) announced yesterday.

NGCP’s North Luzon Public Affairs Officer Lilibeth P. Gaydowen said the brownout, which starts at 7 a.m., will affect the entire Mountain Province and some towns in the provinces of Kalinga, Ilocos Sur and Benguet.

“The brownout has something to do with the maintenance and repair of selected line structures along La Trinidad-Bulalacao and La Trinidad- Mt. Province Electric Cooperative (MOPRECO) 69kV transmission lines,” Gaydowen said.

She said that the affected distribution utilities are the MOPRECO and the parts of the Benguet Electric Cooperative (BENECO).

“The affected areas by the power outage are all towns in Mountain Province; Tinglayan, Kalinga; Cervantes and Quirino, Ilocos Sur; parts of Balili, Mankayan, Tublay, Kapangan, Kibungan, Bokod, Kabayan, Mankayan, Bakun, Atok and Buguias; all in Benguet province,” she said. (With a report from Freddie G. Lazaro)

RE firm gets perks for hydro projects

ASIAPAC GREEN Renewable Corp. will enjoy tax perks after the Board of Investment (BoI) approved its four hydroelectric power plant projects in the Mountain Province.
  In a statement, BoI said it had approved Asiapac’s 2.4-MW Dicapan hydropower plant, the 2.75-MW Upper Siffu hydropower project, the 3-MW Lower Siffu and the 2.4-MW Tanudan plant.The four projects are worth P1.675 billion and will generate 8,697,000 kilowatt-hours per year.

The Investment Priorities Plan grants income tax holidays to renewable energy investors.

Renewable energy investors are also granted access to feed-in tariffs under the Renewable Energy Act of 2008.

Hydroelectric power plants have a feed-in tariff — or guaranteed payments — of P5.90 per kilowatt-hour.

Asiapac is a unit of Asiapac Capital Services Ltd., a Canadian holding firm.

Its Dicapan plant is located in Barangay Lubon, Tadian, Mountain Province and will be constructed at a cost of P369.8 million.

Upper Siffu is located in Barangay Balangao, Natonin, Mountain Province. It will cost P400.7 million to build.

The P426.8-million Lower Siffu power project is located downstream of Upper Siffu.

The Tanudan project is in Barangay Lias, Barlig, Mountain Province costs P449 million.

Meralco eyes 2 Nigerian power firms

By Iris C. Gonzales (The Philippine Star) | Updated April 24, 2013 – 12:00am

MANILA, Philippines – The country’s biggest power retailer Manila Electric Co. (Meralco) together with its consortium partners in Nigeria is expected to take over two power firms in the African country by the third quarter of the year, top company officials said.

“The consortium wants to take over by the third quarter of the year,” Meralco president Oscar Reyes said in an interview.

The consortium, led by Lagos-based Integrated Energy Distribution and Marketing Ltd. (IEDM), tapped Meralco as technical partner for two power firms privatized by the Federal Republic of Nigeria.

“We partnered with IEDM. It is essentially a technical service agreement because IEDM doesn’t have any background experience in distribution. This is for two distribution utilities in Nigeria,” said Meralco chairman Manuel V. Pangilinan.

He said representatives from the consortium are expected to come to the Philippines within the next few days to thresh out other necessary details pertaining to the deal.

Pangilinan said Meralco has taken a five percent equity in IEDM, amounting to $31,500, and was given the option to raise its stake to up to 20 percent.

Nevertheless, Meralco views the deal in Africa as a way to bring the power retailer brand overseas.

“We are looking at it as a platform to having Meralco recognized overseas,” Reyes said.

He said IEDM approached Meralco in 2011 after it was referred by a European advisory firm.

“We were referred to them by a major European energy advisory company. Then they came over. They liked what they saw and asked us to be their technical partner,” he said.

Pangilinan said that if Meralco decides to raise its investments in Nigeria, it wouldn’t be as significant as its Singapore deal.

Early this month, Meralco completed the purchase of a 70 percent stake in an 800-megawatt liquefied natural gas project in Singapore for $488 million.

Meralco subsidiary PowerGen Corp. and First Pacific Co. Ltd. have formed a joint venture, FPM Power Holdings Ltd. (FPMP) to acquire 70 percent of GMR Energy (Singapore).

The remaining 30 percent is owned by Malaysian energy giant Petronas.

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