P13-B Sarangani power plant to start operations by 2015
MANILA, Philippines – The first phase of Alsons’ P13-billion coal-fired power plant in Maasim, Sarangani is on track to start operations by 2015.
In a statement, Sarangani Energy Corp. (SEC), a subsidiary of the Alcantara-led Alsons Consolidated Resources, said the first 105-MW phase of the 210-MW plant in Maasim will be completed by September 2015.
Basic construction of the plant started in June 2012. Daelim Industrial, contractor for the plant, took over the construction last February 2013. Daelim and the SEC project team are currently preparing the power block area, which will contain the plant’s core components.
Production of the plant’s steam turbine generator is underway in Fuji Electric Co.’s factory in Kawasaki, Japan.
The plant is expected to help ease the power shortage in Mindanao. Various Mindanao power cooperatives have already booked the first phase’s 105-MW capacity.
Phase 2 of the plant is expected to start operations by 2016.
Alsons Consolidated holds 75% equity in SEC, with the rest owned by Toyota Tsusho Corp. of Japan.
http://www.abs-cbnnews.com/business/08/23/13/p13-b-sarangani-power-plant-start-operations-2015
Company lines up renewable energy facilities for Mindanao
HYDRO LINK PROJECTS CORP. HAS THE RIGHTS TO EXPLORE, DEVELOP AND UTILIZE CARAC-AN RIVER’S HYDROPOWER RESOURCES.For this year and in the succeeding years, A Brown indicated plans to focus its power generation business mostly in Visayas and Mindanao.
In Mindanao, A. Brown said it is looking at putting up a dozen bunker-fired projects which will have an aggregate capacity of 110 megawatts (MW) along with hydropower projects that will utilize the Carac-an river in Cantilan, Surigao del Sur.
The diesel-fired power plants, it said, are seen to be a significant contribution in addressing the lack of baseload power in the Mindanao grid for the next two to three years.
A Brown, through wholly-owned unit Peakpower Energy Inc., has already started last week the construction of the first 20.9-MW bunker-fired power plant in General Santos City.
The power plant is expected to be fully operational by the second half of next year and will serve the power requirements of the South Cotabato II Electric Cooperative once completed.
A Brown also reported that its wholly-owned unit Hydro Link Projects Corp. has already signed a hydropower service contract with the Department of Energy (DOE), giving it the exclusive rights to explore, develop and utilize Carac-an river’s hydropower resources.
“The project is part of A Brown’s plans to provide much-needed additional power capacities for the green-rated electric cooperatives in Mindanao and to continue to look for other projects similar to it,” the firm said.
Based on the DOE’s 2012 power development plan, Mindanao has the largest electricity demand growth rate projection among the three power grids with an average annual growth rate of 4.75 percent.
Projected peak demand for the island is seen at 1,484 MW this year and 1,567 MW by next year.
By 2015, the DOE earlier said that the power crisis in the island may improve as majority of the big-capacity baseload plants will start operations by then.
National Grid Corp. of the Philippines (NGCP) data showed that Mindanao this week has a power supply deficit ranging from 180 MW to 378 MW.
Mindanao at present has some 530-MW of committed capacity from the private sector. These projects are expected to start operation starting this year up to 2015.
Meanwhile, power projects with combined capacity of some 2,349.60 MW are still indicative or under study.
As for Visayas, A Brown said that government figures show that the year 2015 will be critical period for the region.
Deriving data from DOE projections, A Brown said an annual demand growth rate of 4.55 percent in Visayas would require an additional capacity of 100 MW to avert potential power shortages by 2015.
“To fill the anticipated tight power supply situation in Panay and the Visayas grids by 2016 as economic activity continues to expand in the area, a 135-MW coal-fired power plant in Concepcion, Iloilo will be constructed,” the company said.
A Brown said it will start construction of the coal-fired power plant within the third quarter of the year and commissioning of the plant is expected to commence by 2016.
“The plant site and support units are programmed for two units. The preparations for the second unit is forecasted to begin two to three years after commissioning of the first unit if the power market in the region continues to expand as projected,” the company said.
The coal-fired power plant will be undertaken by Palm Concepcion Power Corp., a joint venture company of A Brown unit Palm Thermal Consolidated Holdings Corp. together with Jin Navitas Resource, Inc.
The P12.5 billion power plant will be built on a 30-hectare site in Brgy. Nipa, Concepcion, Iloilo.
Vivant to bid for 4 power barges in PSALM auction
MANILA, Philippines–Publicly-listed Vivant Corporation will bid for four power barges being auctioned off by the Power Sector Assets and Liabilities Management Corp. (PSALM).
In a statement Friday, Vivant said each power barge has an installed capacity of 32 MW and were all commissioned in the 1980s. The asset sale is divided into two packages. Package one consists of Power Barges (PB) 101, 102 and 103 while PB 104 is being auctioned separately.
After submission of the initial requirements set by (PSALM), Vivant shall proceed with due diligence to assess the technical and financial viability of the assets. Deadline for submission of bids is on October 9. Opening and evaluation of bids will follow, the statement said.
After two rounds of failed bidding, PSALM introduced changes in the bid package to address some concerns raised by interested parties.
Under the new terms, PB 101-103 which are located in Iloilo would no longer be required to be transferred to Mindanao. PB 104, which is presently moored in Davao City, is still required to be operated in Mindanao for at least five years.
http://business.inquirer.net/139821/vivant-to-bid-for-4-power-barges-in-psalm-auction
New Agusan power plant underway
San Francisco, Agusan del Sur – The government’s Mindanao Power Development Program gets another boost following the establishment of a multi-billion-peso worth of power source in Agusan del Sur, and in this city.
Local officials said the establishment of these power plants is expected to solve the power supply shortage in Mindanao.
Yesterday, officers of the Agusan del Sur Electric Cooperative (Aselco), A. Brown Company, Inc. (ABCI), Peak Power San Francisco, Inc. (Peakpower), together with provincial and municipal officials in Agusan del Sur, and the Agusan del Sur Chamber of Commerce and Industry spearheaded the ground-breaking ceremony of the 3,000-square meter site for the establishment of the five-megawatt (MW) bunker-fired (diesel) power plant at the Aselco Compound in Barangay San Isidro, San Francisco town.
During the ground-breaking ceremony, Aselco general manager Engineer Emmanuel B. Galarse, and Board President Joel Q. Jumonong said the construction of the power plant is expected to boost the economic activity of Agusan del Sur, and eventually attract investors to venture in this agricultural-rich province.
“This is a big boost to our economy here,” added Galarse.
Aside from the provincial and municipal officials, also present during the ground-breaking ceremony include ABCI chairman and chief executive officer Dr. Walter W. Brown; Peak Power President Roel Z. Castro; and 1-CARE Party-list Representative Edgardo R. Masongsong
“Peakpower is part of the ABCI’s aim to address not only the power problem in Mindanao, but more importantly to give light to the progress of the various industries across the region, while the security and reliability of power supply would yield more competitiveness rates, and help bring electricity costs down, thus driving down the cost of doing business in this area,” said Brown.
He said that Peakpower is a wholly owned subsidiary of the ABCI, which is engaged in the development efforts in the country today.
For his part, Agusan del Sur Governor Adolph Edward G. Plaza said the establishment of the power plant is another “plus factor” for the economic growth of the province as more investors are expected to come.
http://mb.com.ph/News/Provincial_News/28275/New_Agusan_power_plant_underway#.UhdCc9I_uvc
Schemes for Agus Privatization proposed
Stakeholders in Mindanao have been propounding “hybrid privatization schemes” that the Power Sector Assets and Liabilities Management Corporation (PSALM) may consider for the Agus hydropower complex.
Instead of outright sale of the hydro assets, the schemes reportedly lodged to the Mindanao Development Authority (MinDA) and the Department of Energy (DOE) include a privatization of just the kilowatt-hours that can be generated from the facilities.
According to DOE sources, it was proposed that “the net present value of the generated energy can be calculated and paid for by the bidders on payment terms to be dictated by government.”
It was further explained that “a portion of the proceeds can be set aside for the rehabilitation and upgrade of the plants.”
The other option will be for PSALM to contract out the operation and maintenance (O&M) of the plants to a third party.
In both modes of privatization, it was noted that “PSALM will continue owning the plants.” A future outright divestment of the assets may also be planned.
In a previous briefing with reporters, Philippine Independent Power Producers Association (PIPPA) president Luis Miguel Aboitiz opined that the Agus case is not a matter of privatizing, “but putting it into private entrepreneurial hands so it will produce power and yet satisfy politics and the people of Mindanao, and at the same time, PSALM.”
But the crucial step, he stressed, will be for PSALM and concerned executive agencies, like the Departments of Energy and Finance as well as the local government units (LGUs), to resolve their preferred privatization option for the Agus facilities.
The Agus facilities have been spared from privatization for 10 years from the passage of the Electric Power Industry Reform Act (EPIRA). That timeframe should have lapsed in 2011, but PSALM still had its hands tied when it comes to the hydro assets’ disposal because of stern opposition lodged by various sectors in Mindanao.
The Mindanao grid primarily, was also detached from the privatization processes largely undertaken in Luzon and Visayas grids in the past few years, hence, the lack of private sector capital flows in the area led to its severe supply crisis.
Without fully comprehending such outcome though, Mindanao stakeholders have been taking the frontlines grumbling about the supposed failure of EPIRA because of their crisis-gripped power grid.
Several privatization plans were already presented for Mindanao, but the government through MinDA and the DOE, might need to do more in terms of apprising ‘cost averse’ consumers in the area as to the available options toward their longer term energy security.
http://mb.com.ph/Business/Energy/28531/Schemes_for_Agus_Privatization_proposed
Trans-Asia Ramps up Capital Outlay for Wind Power Project
To get ahead in the race, Trans-Asia Oil and Energy Development Corporation has been ramping up the implementation of its 54-megawatt San Lorenzo wind power project in Guimaras island.
It disclosed to the Philippine Stock Exchange (PSE) on Tuesday the R120-million capital outlay it made for the wind project, of which amount was sourced from the proceeds of its stock rights offering (SRO) last year.
“The Corporation shall use the funds for expenses in relation to its investment in a 54MW wind energy project in San Lorenzo, Guimaras,” Trans-Asia said.
It emphasized that the investment for the wind facility is in accordance with what has been set out in the prospectus when it undertook its stock rights offering.
The Trans-Asia wind power project has been among those certified for “commerciality” by the Department of Energy.
This also serves as the company’s initial approval to be included in the availment of feed-in-tariff (FIT) system set for renewable energy projects.
The policy laid down by Energy Secretary Carlos Jericho Petilla is for the FIT incentive to be given to developers which will finish first in their project construction as well as on grid synchronization of their generated electricity.
Wind technology is seen to be in for a “tight race” on FIT availments because there had been “oversubscription” compared to the installation cap of 200 megawatts prescribed by the energy department.
Aside from Trans-Asia, the other wind project developers are Energy Development Corporation, Alternergy Wind One Corporation and AC Energy Holdings of the Ayala group.
Various projects are targeting commercial operations between latter part of 2014 to first half of 2015. Coincidentally, 2015 is the cut-off period provided in the rules for the first batch of FIT availments.
NGCP steps up disaster preparedness
Circumstances wherein wind gustiness had not downed transmission facilities and the grid was on full operation despite the torrential rains this week could have been upshots of ongoing improvements in the power system, but the National Grid Corporation of the Philippines (NGCP) indicated that it will further step up its efforts on disaster preparedness.
“The corporation is continuously taking necessary preparations and precautions to minimize the impact of succeeding tropical storms and other disasters on NGCP operations and facilities,” the system operator noted.
It similarly gave assurance to the public that it “is ready to conduct similar disaster management activities to ensure reliable power transmission services.”
In this week’s strike of floods and the heavy beating of tropical storm Maring in some areas, NGCP reported that the power grid “remained normal and fully functional.”
“The grid operator’s transmission lines and substations in North Luzon, South Luzon and NCR (National Capital Region) endured the heavy rains and flood brought about by the southwest monsoon which affected majority of Luzon,” NGCP stressed.
There have been circumstances in the past wherein failures in transmission operations were logged due to the strike of calamities, which in turn induced blackout incidents. In fact, NGCP’s ‘baptism of fire’ just a year after it took over the grid’s operations had been massive blackouts due to a super typhoon in 2010.
In the past four years though, the company has been continuously pursuing projects to improve and expand the country’s transmission facilities. Among the first facility enhancements it set had been the replacement of wooden poles with steel poles because the latter had been seen sturdier and could withstand ‘knock out blow’ of disasters, like typhoons.
NGCP similarly noted that it installed anti-flooding system, which “was able to control the entry of floodwater in its substations, particularly in Sucat and Binan.”
The company averred that its “overall disaster control activities effectively prevented damage to the substation equipment and ensured continuous power transmission service to Meralco (Manila Electric Company) and other distribution utilities.”
http://mb.com.ph/Business/Energy/28527/NGCP_steps_up_disaster_preparedness#.UhdC59I_uvc
Energy chief ‘optimistic’ ERC will approve price methodology for Mindanao market
“The IMEM clearing price would be crucial in determination of rate impact, even for purposes of simulation,” said Mindanao Development Authority Investment Promotion and Public Affairs director Romeo Montenegro.
“From August 26 to Sept. 26 will be the trial operations and full operations after, assuming the ERC hearing is proceeding on same time line,” he added.
The IMEM, created to address the region’s power supply issues, is designed to be a binding day-ahead market where uncontracted or unutilized contracted capacities are traded. The market-driven day-ahead price will be subject to an offer cap to be agreed on by the regulator and the ERC.
“[E]xisting power supply are all contracted so what we are really trying to engage are possible embedded power generation capacity that are currently not being traded . We hope to bring them out to the grid,” said Petilla.
All generation facilities within the Mindanao Power System will be required to register in the IMEM.
The IMEM incorporates a demand-side management program through the integration of load curtailment, which is currently not implemented in the Luzon and Visayas systems. — BM, GMA News
Mindanao’s hydro-electric power plant undergoes repair
Thursday, August 22, 2013 09:07:45 PM
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ILIGAN CITY (Mindanao Examiner / Aug. 22, 2013) – The National Power Corporation in the southern Philippines has totally shut down the Agus 4 hydro-electric power plant that resulted to rotating brownouts in Mindanao. After Agus 4, the NPC said it would also schedule the Pulangi hydro-electric power plant Number 2 for repair because of damage it took during the typhoon Bopha last year. Lawyer Romero Pacilan, the legal counsel and spokesperson of NPC, has told the Iligan City Council that it shut down the power plant on August 15 to allow major repair of the 25-year old hydro-electric facility. He said the repair is necessary so it could serve more to the power needs of Mindanao. Pacilan said Agus 4, which has a generating capacity of 150MW, was supposed to undergo a scheduled repair in May, but deferred it following a request by the National Grid Corporation of the Philippines (NGCP) due to dangerously low supply of electricity in the region. The NGCP maintains the distribution of power to the different areas in the country. Pacilan said they can still supply about 930MW in Mindanao even without Agus 4. “We are just talking here of about 30MW shortage due to the repair of Agus 4,” he said. Engineer Pedro Ambos, chief of NPC Planning and Operations Division, said the of Agus 4 will last about 66 days, but he was quick to say that they will try their best to finish it within 45 days. He said the Pulangi repair will come as soon as the Agus 4 repair is completed. The repair of Agus will cost about P425 million. Iligan City Vice Mayor Ruderic Marzo has expressed concern over effect to the local economy of the rotating brownouts. The Iligan Light and Power, Inc. (ILPI) has a contract with NPC for 15MW and another 10MW from Mapalad Power Corp. (MPC) of the Alcantara Group of Companies, to cater to its electric needs. Engineer Robin Ramillo, the MPC plant manager, said the ILPI has sought an additional 5MW, but its electric power had been allocated to other clients in Mindanao. “We are trying our best to find ways and means to help the consumers of Iligan City,” Ramillo said. Engineer Keenan Erigbuagas, a spokesman for the ILPI, said Iligan City is now experiencing at least 2 hours of brownout every day. With the present levels of power drawn from MPC and the state-run Power Sector Assets and Liabilities Management Corp., the generation cost component of electricity bill in Iligan has increased by as mush as P1.63 per kilowatt hour for residential customers because of “pass-on” charge and “revenue-neutral” to ILPI. The ILPI said it would explore the best power supply options with the least rate impact to the customers and appealed to consumers to conserve electricity, “as it is becoming an expensive commodity.” In Zamboanga City, at least 3 hours of rotating brownouts are being implemented by the local electric cooperative, while 2 hours in Pagadian City. (Richel Umel) http://www.mindanaoexaminer.com/news.php?news_id=20130822080745 |
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