Power reserves enough to cover peak demand this year — NGCP

MANILA, Philippines - Grid system operator National Grid Corp. of the Philippines (NGCP) expects enough reserves to cover another record high in peak demand this year, barring any delays in committed power projects, officials said.

Based on the Department of Energy’s Power Development Plan, peak demand for 2018 is forecast to reach 10,561 megawatts (MW) in Luzon, 2,143 MW in Visayas and 2,064 MW in Mindanao, said Ermelindo Bugaoisan, NGCP’s systems and standards head of the Technical Services Department.

NGCP said total Luzon power supply is expected to face constraints in April due to the expected rise in demand brought about by rising temperatures.

However, Luzon would have 1,432 MW reserves during the highest peak in May, still enough to cover contingencies, Bugaoisan said.

Meanwhile, Visayas would have 400 MW reserves and Mindanao with 1,133 MW during peak demand, which historically happens at the end of the year, he said.

However, NGCP spokesperson Cynthia Alabanza said these assume there are no unforeseen circumstances which could come from weather, changes in the demand profile and  how the committed plants progress.

“Assuming that the projections which are based on plant outages and maintenance program and historical peaks and projected rise in demand by the DOE, assuming nothing deviates from that, then we see no issues for the coming year,” she said.

She said the projections of NGCP are based on what is scheduled for the maintenance program.

“This does not consider unplanned outages which cannot be because of its nature that you cannot forecast it so its difficult to factor that in,” Alabanza said. “There’s always a potential for power outages but assuming all things remain on plan and on schedule, we see nothing that we can’t reasonably predict.”

But during the Senate energy committee hearing on Tuesday, Energy Regulatory Commission (ERC) chairperson Agnes Devanadera said the regulator is unable to decide on contracts covering 5,493.38 MW in supply due to lack of quorum.

As a collegial body, the presence of at least three members of the commission is needed to constitute a quorum to enable the ERC to adopt any ruling, order, resolution, decision or other acts in the exercise of its quasi-judicial and quasi-legislative functions.

The pending contracts include 43 new certificates of commerciality (COC) equivalent to 2,977.89 MW, renewal of 47 expired COCs worth 1,971.49 MW, and 29 expired power supply agreements (PSAs) which cover 544 MW in supply.

Philippine Independent Power Producers Association Inc. (PIPPA) said these pending items require immediate attention since COCs are required to operate new and old plants, as well as for registration in the wholesale electricity spot market (WESM) to transact in the market.

Devanadera said she submitted documents, including a list of pending cases, to the Office of the President earlier this month after seeking guidance from President Duterte following the Office of the Ombudsman’s suspension order on commissioners Alfredo Non, Gloria Yap-Taruc, Josefina Patricia Magpale-Asirit and Geronimo Sta. Ana for one year without pay in December.

To resolve the crisis in ERC, Sen. Sherwin Gatchalian said the most practical really is to appoint temporary officials and look at the legal basis.

DOE Secretary Alfonso Cusi also said the agency has requested for the designation of acting commissioners so that ERC could continue performing its functions.