MANILA, September 6 (PNA) — Energy Secretary Carlos Jericho Petilla confirmed Friday that 71 Megawatts (MWs) is the current estimated capacity of the Interruptible Load Program (ILP), coming from 104 companies who have already signed up with the Manila Electric Company (Meralco).
”I will continue to push for ILP, but part of that, 104 (companies) have just signed up. Effectively that’s just 71 MWs,” he told reporters on the sidelines of the “Ceremonial Switch-On of Solar Photo-Voltaic Net Metering Facility” at La Consolacion College in Manila.
The ILP program transfers power from companies or industries’ generator sets, to add to the grid’s power. Consequently, companies are paid for the power they produced, on top of their saved self-generation, but need diesel to power their generating equipment. It has been running since December.
Petilla added that there are indications that another 83 MWs from the Retail Electricity Suppliers Association (RESA) can be tapped for the impending supply shortage of Luzon the summer of 2015.
He previously mentioned that the Department of Energy (DOE) is still working for another 400 MWs, due to Petron Corporation’s timely contribution of 140 MWs and Avion Power Plant’s capacity of 100 MWs. Initially, the secretary aims to fill in the 600 MWs reserve.
However, the energy head further stated that the Luzon grid can still make it for summer 2015, due to the other measures such as fast-tracking of projects that are being recommended by the private sector.
”We can still make it, the industries suggests that all we need is a limited contracting capacity whereby, if we need 600 MWs, 300 MW will be contracted, (while) 300 MW will be given to ILPs and other fast-tracked projects,” he said.
Petilla said that the contracted 300 Megawatts may also come from mothballed plants forced to run, expansion projects or power plant rental.
Millenium Energy Inc’s Navotas plant, was mentioned by the secretary, as one of the prospects for the mothballed plants. He also cited that the plant was cheaper, charging only Php 700 Million per 100 MWs, on the occasion that full capacity does not run.
But, he stressed, that the companies owning mothballed plants are asking for a five year contract.
On the other hand, the energy head highlighted that power plant rental will cost more, with the companies asking for Php 900 Million, yet will only last for three years time.
Moreover, Petilla mentioned that DOE is still pushing Meralco to sign a supply contract from other sources.
With the hype that the reserve shortage has received from the private sector and the government, it is most likely that Luzon will have a sustainable power through the summer of 2015. It is projected that demand is to reach about 9,100 MWs due to the prevalent use of aircondition units of households.
Meanwhile, the secretary has maintained that President Benigno Aquino III, is still firm on his decision to only utilize Section 71 of the Electric Power Industry Reform Act (EPIRA) as a last resort. It enables the President to ask Congress to lay out conditions for additional capacity in the event of a supply shortage. (PNA)