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Electricity/Power Grid ,
Others

DOE Steers Power Industries to Work Together for the Summer Months

4 April 2019

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Philippines

TAGUIG CITY – Department of Energy (DOE) Secretary Alfonso G. Cusi has been closely coordinating with the power industry players to address the growing demand and the thinning of power reserves for the summer months.

“The entire energy family should take a pro-active approach towards securing our power supply, especially since it is both summer and election season,” Sec. Cusi said.

The National Grid Corporation of the Philippines (NGCP), Independent Electricity Market Operator of the Philippines, Manila Electric Company (Meralco), and the DOE agreed that the power situation should be closely monitored given supply level adjustments brought about by increasing demand and the forced outages of power plants.

Strategies on how to address thinning power reserves were also discussed during a meeting with Meralco officials. This includes the creation of additional power bypass lines, the efficient utilization of available power plants, as well as the application of demand-side management and accurate information dissemination to consumers.

On the matter of the Interruptible Load Program (ILP) as a measure to help enhance power reserves, Sec. Cusi emphasized that “it shall be implemented as a last resort given the additional costs the ILP would bring to consumers.” The ILP serves as an option for Distribution Utilities (DUs) like MERALCO and electric cooperatives to ask their big load customers to serve their own power needs by using their own generator sets to augment power supply capacity in times of Red Alert Status or when power supply reserves are thin.

“We will not wait for a loss of power to occur. The ILP is there as a final option to help us prevent a supply shortage,” Sec. Cusi added.

Yellow Alert Monitoring
According to the report of the NGCP, the yellow alert status issued today has been lifted effective at 4:00pm due to sufficient operating reserve brought about by low actual demand.

Earlier today, the NGCP issued a yellow alert notice issued for 1:00pm to 4:00pm today, due to insufficient operating reserve brought about by the high system demand and forced outage of the following plants:

Malaya Unit 2 (350 MW)

Pagbilao Unit 3 (420 MW)

SLTEC Unit 1 (135MW)

Makban Unit 7 (20 MW)

Tiwi Unit 6 (57 MW)

Tiwi Unit 1 (60 MW)

(Total = 1,042 MW)

De-rated Plants:

Masinloc Unit 2@250 (344MW)

Calaca Unit 2@200 (300MW)

Malaya Unit 1@150 (300MW)

SLPGC Unit 2@100 (150MW)

“The DOE and the energy players are closely monitoring the increases in demand and the power plants that are expected to be in,” Undersecretary Felix William B. Fuentebella emphasized in a press conference earlier at the agency’s headquarters.

The other strategies considered by the power industry players include the management of plant maintenance schedules, the optimization of existing hydroelectric power plants, the upgrading of the electricity facilities, the preparation of available generator sets for unforeseen outages, the participation of big establishments in the Interruptible Load Program, as well as the continued call for an energy efficiency lifestyle for electricity end-users. The DOE also emphasized the improvement of the operations of power plants and through the use of renewable energy (RE) and information technology.

Demand-Side Management Strategies
The DOE through its Energy Utilization Management Bureau (EUMB) reiterated the importance of its SAVE SAVE SAVE energy efficiency campaign, not only to incur more savings, but also to ensure uninterrupted electricity services this summer season.

Renewables

Geothermal could fuel part of increasing energy demand in Mindanao

4 April 2019

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Philippines

More renewable energy facilities will be needed in Mindanao, the southernmost part of the Philippines, to keep up with the rapid growth of industries, real estate, services, and agribusiness. This was the message of Mindanao Development Authority (MinDA) Assistant Secretary and Deputy Executive Director Romeo Montenegro to the stakeholders in the Water, Energy, and Power Summit which was held on March 26 in Zamboanga City.

Mindanao will need about 3500 MW of additional capacity between 2021 to 2030, according to Montenegro.

Mindanao currently has an excess energy supply due to the construction of new power plants. However, these are mostly coal-powered plants, which have resulted in a regression of the region’s renewable energy-fossil energy mix.

In 2015, the power energy mix in Mindanao was 49% hydropower, 31% oil-based, 14% coal, and 6% geothermal. After the entry of the coal power plants, the 2017 energy mix shifted to 49% coal, 29% hydropower, 18% oil-based, 3% geothermal, and 1% biomass.

Overall, the fraction of energy generated in Mindanao from renewable sources decreased from 55% to 33%.

Renewables

Promoting rooftop solar energy in Vietnam

4 April 2019

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Vietnam

Solar power development has yet to meet potential

In Vietnam, the development of solar power including solar power systems on the roof of houses is considered to have a lot of potential. Specifically, the annual radiation measured in the Southern region and South Central provinces is approximately 1,600 kWh/m2. According to a report on the technical assessment of the potential of rooftop solar energy in Vietnam released by the World Bank in 2017, the potential of solar energy in Ho Chi Minh City is about 6,300 MW. Meanwhile, Hanoi has average monthly sunshine hours of about 1,466.1 hours per year, which is listed in the areas of average solar radiation of 3.3 to 4.1 kWh/m2 per day.

According to the Ministry of Natural Resources and Environment, the generation of every 1 kWh of solar energy will help to reduce CO2 emissions by 0.6612 kg. If solar energy is promoted, it would be a clean energy resource with rather high output, while helping to minimise the budget invested in electricity generation and transmission facilities.

In many countries, solar energy is also a developed industry, creating jobs and income for many people. It is estimated that if only two million rooftops in Vietnam were installed with solar panels with a capacity of 10 kW per roof it would reduce the corresponding amount of 16 million tonnes of coal per year used for coal fired power plants.

Prof. Dr. Tran Dinh Long, vice chairman of the Vietnam Electrical Engineering Association, said that the output of solar power systems generated at public facilities in the morning can meet 25 to 30% of power demand of these facilities and up to 60-65% of power demand during noon and sunny hours. Tran Hong Ky, an energy researcher at the World Bank, said that about 30% of the roofs in Ho Chi Minh City and Da Nang are capable of installing rooftop solar energy systems effectively.

With the goal of reaching solar output of 1 GWp by 2020, the Prime Minister approved Vietnam’s renewable energy development strategy by 2030, with a vision to 2050, along with a number of mechanisms to encourage the development of solar power projects. The Ministry of Industry and Trade also issued Circular 16 on solar project development and electricity purchase contracts in a bid to solve problems related to tax, payment methods and others at rooftop solar power projects.

Deputy head of EVN Business Division Tran Viet Nguyen said that offices and branches of EVN installed rooftop solar systems at 54 locations with a total capacity of 3.2 MWp in 2018. Approximately 1,800 customers including offices, businesses and households are installing rooftop solar systems with a total capacity of 30.12 MWp.

A representative from Ho Chi Minh City Power Corporation (EVN HCMC) said that the implementation of rooftop solar power in Ho Chi Minh City has proved effective. EVN HCMC has installed rooftop solar systems with a total capacity of nearly 1,130 kWp and is continuing to deploy other systems with a capacity of 2,658 kWp.

EVN General Director Tran Dinh Nhan said that the above figure is too small compared to the potential of solar power in Vietnam, citing a lack of specific regulations on electricity purchasing when households connect their solar power systems to the national grid. In addition, information about rooftop solar power remains limited.

EVN cannot sign power buying contracts with customers because there are no official instructions on how to buy solar electricity from households. Customers still hesitate to invest in solar systems due to the lack of information about product quality, operating methods, equipment warranty, and others.

According to experts, the installation of solar power panel systems has become easier thanks to the development of technology. However, the cost of investment at around VND20-VND25 million (US$1,000) per kWp remains high, while there is no support policy for solar power projects, leading to the rejection of households.

More efforts needed

EVN General Director Tran Dinh Nhan affirmed that the electricity sector will assist households and enterprises in installing solar power systems and help them with procedures for connecting to the national grid, in addition to the signing of power purchase contracts. He noted that the buying of solar electricity connected to the grid will be done immediately when there are guidance circulars issued by the authorities.

Furthermore, EVN will bear the full costs of the installation of electricity meters to measure the volume of electricity consumed as well as connected to the grid. EVN also proposes ministries and agencies to promote information on the benefits of rooftop solar power to the public. The Government should encourage agencies, units, organisations and People’s Committees of provinces and cities to establish rooftop solar systems through providing them with supporting mechanisms.

Dao Minh Hien from Power Engineering Consulting Joint Stock Company 2 (PECC2) said that there are several models to support people to install rooftop solar panels such as power companies fund, rent or lease roofs or rooftop solar power systems.

EVN is actively cooperating with international partners to learn and approach policies to encourage investment in the development of solar projects in Vietnam in addition to updating technology and solutions to develop rooftop solar systems for customers.

Managing Director, Principal Investments at VinaCapital, Samresh Kumar, said that the mobilisation of international capital is necessary to boost the development of rooftop solar energy, particularly on an industrial scale. International financial institutions will directly give loans to solar energy developers to help them invest in solar projects, or provide loans through domestic financial intermediaries.

According to Director of Green Innovation and Development Centre (GreenID) Nguy Thi Khanh, one of the reasons for the rejection of rooftop solar energy in Vietnam is the lack of information on the system including categories, technical regulations, costs, chance to get back your investment, and others. Therefore, an important solution to promote the development of rooftop solar energy is to boost communication to the community, especially informing households of the investment capacity and the practical benefits of this model.

Deputy Minister of Industry and Trade Hoang Quoc Vuong said that a circular to amend Circular 16 will soon be issued by the ministry, after completing the collection of comments from ministries and sectors. This new document will specify the method of payment for the purchase of solar output through specific contracts, thereby helping the relevant parties to have a reasonable payment mechanism in order to overcome shortcomings of Circular 16. The legal document is also expected to encourage investment in and development of rooftop solar energy in the future, Vuong noted.

Bioenergy

Biomass, biogas group cries foul over PDP

4 April 2019

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Thailand

Thai renewable power operators plan to file a lawsuit against a new version of the power development plan (PDP) 2018-37 after seeing it has a lower quota for renewable power generation.

Pajon Sriboonruang, president of the Thai Biogas Trade Association (TBTA), said the power capacity quota from renewable energy in the PDP is lower than the association expected.

“We are filing the claim against energy policymakers with the Administrative Court [today] to delay the implementation schedule noted in the new PDP,” said Mr Pajon.

The PDP 2018-37, approved in late January by the National Energy Policy Council, is set to limit the power capacity for biomass and biogas, although both resources have lots of potential and are abundant, he said.

The PDP offers many privileges and incentives for solar power operators, even allowing households to join the solar power scheme, while policymakers plan to allow sales of output to the state grid.

The new version of the plan has yet to be acknowledged and approved by the cabinet, waiting for a new government to be formed.

Mr Pajon said the new version sets a goal for renewable power to comprise 20% of total power generation by 2037, but that power generation is not expected to connect to the state grid until 2031.

The new quota for solar power is expected to account for half of the renewable power capacity in the plan.

By 2037, the PDP projects renewable power generation of 18,107 megawatts, with total generation of 73,211MW.

Solar power generation is expected to be 12,600MW by 2037, including household rooftop panels and floating solar panels at Electricity Generating Authority of Thailand dams.

Biomass resources have a quota of 3,376MW, while biogas is allotted 546MW. Wind is projected to have 1,485MW and industrial waste 44MW.

Policymakers have promoted biomass and biogas generation for three decades and many projects are connected to the state grid now and are at nearly full capacity, leaving room for growth.

“Although both biomass and biogas are generated from plentiful local agricultural resources, there is no room for operators to expand,” said Mr Pajon.

“There is abundant agricultural waste, but the plan emphasises importing costly wind turbines and solar panels, instead of using local resources.”

He said biomass and biogas generation offers many benefits to the local economy.

Earlier the TBTA talked with the policymakers and they agreed with the association, but they did not meet with the group when forming the PDP.

Mr Pajon said the association is calling for new regulations for burning agricultural waste because of the air quality crisis. Policymakers should set rules on use of waste in biomass power generation to solve this problem, he said.

Coal ,
Electricity/Power Grid

Coal-fired plants taking up slack from Mindanao hydropower during El Niño

3 April 2019

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Philippines

DAVAO CITY — Mindanao’s shift in recent years to more power generated by coal-fired plants is for now saving the southern Philippines from energy problems caused by the El Niño dry spell.

“Mindanao’s current energy mix and supply status may be able to spare Mindanao from the effects of long dry spell to our power situation,” Romeo M. Montenegro, deputy executive director of the Mindanao Development Authority (MinDA), told BusinessWorld on Wednesday.

As of April 3, Mindanao had a power reserve of 569 megawatts (MW) with capacity at 2,369 MW and peak demand of 1,800 MW, based on data from the National Grid Corp. of the Philippines.

About 70% of Mindanao’s supply is currently sourced from coal-fired plants and the rest from renewable energy, mainly from the Agus and Pulangi hydropower complexes.

In 2015, the breakdown was 49% hydro, 14% coal, 31% oil-based, and 6% geothermal. By 2017, it has tilted to 49% coal, 29% hydro, 18% oil-based, 3% geothermal, and 1% biomass.

Output from the two hydro facilities, already on the decline due to the age of the facilities, has further been affected by the prevailing dry spell.

The Lanao del Sur Provincial Disaster Risk Reduction and Management Council (PDRRMC) conducted a special council meeting on Tuesday to discuss the effects of El Niño, including the situation in Lake Lanao that powers the Agus plant.

Pili Papandayan of the Provincial Environmental and Natural Resources Office said during the meeting that Lake Lanao is now below critical level.

As of Tuesday, Lake Lanao’s elevation was at 698.45 meters above sea level (masl), lower than the 699.15 masl minimum operating level, based on the National Power Corp.’s monitoring.

The PDRRMC is set to meet again on April 4 for the comprehensive plan to address the El Niño impact.

Mr. Montenegro noted that the effect on power supply depends on the contracted supply of the power distributors.

He said those that are heavily contracted with the hydroelectric plants with “no financial flexibility to contract non-hydro sources in the interim will likely be affected.”

“It can be said therefore that the effect of El Niño, if ever, to certain electric cooperatives in Mindanao could happen on a case to case basis,” he added.

Nonetheless, MinDA continues to push for more renewable energy sources to at least have a 50-50 balanced mix with fossil fuel.

“Go renewable,” Mr. Montenegro said at the recent Water, Energy and Power Summit in Zamboanga City.

He said Mindanao’s long-term energy plan remains geared towards a secure, optimal, and sustainable system.

He said there are currently 234 renewable energy projects, mostly hydro, that are pending with the various permitting agencies.

Rehabilitation plans for the Agus and Pulangi plants also remain pending.

Others

DOE coordinates with power producers to ensure supply

3 April 2019

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Philippines

MANILA — For the third consecutive day, the Department of Energy (DOE) assured the public that it continues to coordinate with power producers as the country’s power reserves grow thinner.

In a statement, the Energy department said the yellow alert status in the Luzon grid was lifted by the National Grid Corporation of the Philippines (NGCP) at 4:55pm Wednesday “due to sufficient operating reserve brought about by low actual system demand”.

NGCP issued the “Yellow Alert” notice for 1-4pm due to unplanned outage of several generators.

These are the Pagbilao 3 in Quezon Province, 420 megawatt (MW); Masinloc 2 in Zambales, 344 MW; Pagbilao 1 (382 MW); and Malaya 2 in Rizal, 350 MW.

Three plants were also de-rated in the afternoon and these are the Calaca 2 in Batangas which only provided 200 MW instead of 300MW, the Malaya2 at 150MW from 300MW and the South Luzon Power Generation Corporation (SLPGC) in Batangas to only 100MW instead of 150MW.

DOE said close coordination with power plant operations remain “to ensure the delivery of electricity services to consumers”.

“It includes the facilitation of incoming plants that are undergoing commissioning and testing, such as Masinloc3 for Luzon and TVI2 for Visayas,” it added.

TVI2 is the power plant of Therma Visayas Inc. (TVI), a subsidiary of Aboitiz Power, in Toledo, Cebu. (PNA)

Renewables

Velasco: PH needs more wind, solar power

3 April 2019

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Philippines

MANILA, Philippines – Marinduque Rep. Lord Allan Velasco said the Philippines needs to ramp up investments for cleaner energy sources if it wants to power up the homes of close to three million Filipino households, particularly those in geographically isolated areas, who still have no access to electricity.

And with the recent signing of the Energy Virtual One-Stop Shop (EVOSS) law by President Rodrigo Duterte which streamlines the permitting process of power generation, transmission and distribution of power projects, the government must push for the development of more environment-friendly and sustainable sources like solar and wind power, Velasco said.

The EVOSS law is envisioned to lure more investments—foreign or local—in the power sector regardless of technology with the elimination of red tape, which is hurting the cost and ease of doing business in the country, the Marinduque lawmaker said.

“As our population grows, it’s not only important to tap new sources of energy to meet the demand. We should also make it a priority to harness renewable sources of energy that are clean and cheap,” said Velasco, chair of the House Committee on Energy.

Power consumption across the three main islands in the Philippines increased 4 percent to 94,370-gigawatt hours (GWh) in 2017 from the previous year. In Luzon, power use rose to 3.58 percent to 69,625 GWh from 67,221; Visayas jumped 5.8 percent to 12,942 GWh from 12,232 GWh; and Mindanao moved upward by 4.04 percent to 11,803 GWh from 11,345 GWh.

A study by an Australia-based think tank International Energy Consultants, however, said in a 2018 report that the Philippines ranked second in the top five countries with the highest power rates after Japan in the Asia-Pacific region.

“What the country needs is renewable sources of energy to meet the future demand for electricity. We should add more windmills, solar panels and hydro-electric energy producers. These are the areas where we need to attract investments and capital,” Velasco said.

Electricity/Power Grid

DOE assures power supply for automated polls in May

3 April 2019

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Philippines

MANILA, Philippines — The Department of Energy (DOE) gave assurances on Wednesday that there will be an adequate supply of electricity during the elections in May.

DOE Electric Power Industry Management Bureau director Mario Marasigan said there is enough energy supply in Luzon, Visayas, and Mindanao on the day of the elections, which requires electricity because of the automated voting system.

“By the time that it is already the election, we expect that there will be no problem as far as supply is concerned…[We have enough supply] and even ample reserves,” Marasigan said when asked by Senator Sherwin Gatchalian during the Senate energy committee hearing on initial public offering and regulatory rate reset.

“Based on our previous experiences, we don’t see any problem during the election day because there are no commercial and industrial operations and our expectations for the demand will be way below than the normal working hour or day,” Marasigan added.

Marasigan said new power generation facilities are currently being tested to help increase the energy supply in the country.

Enough energy during El Niño season

The peak of the demand for electricity, which is expected to reach 11,400 megawatts, will be on the week following the elections, according to Marasigan.

He said there will be ample supply of energy during the El Niño season when consumer demand also increases.

On Tuesday, energy demand reached 10,267 megawatts.

While the energy department is not expecting supply to reach yellow alert, Marasigan disclosed that the power reserves had been reduced over the last three days due to unplanned outages from four facilities in the country. /ee

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