4 energy projects secure national priority status

MANILA, Philippines — There are now four projects declared as energy projects of national significance (EPNS) including the Meralco Powergen Corp. (MGen) coal-fired power plant and a wind farm entitled to receive government perks under Executive Order (EO) 30.

Latest government data showed that the Energy Investment Coordinating Council (EICC) through the Department of Energy (DOE) issued certificates of EPNS (CEPNS) for pre-development phase to Island Wind Energy Corp. on Aug. 30.

Meanwhile, the EICC issued CEPNS for commerciality to A1E on Sept. 11. A1E is putting up a 2x600-MW coal-fired power plant in Atimonan, Quezon.

Island Wind Energy is currently working on its proposed 151.2-megawatt (MW) Talim Wind Power Project in Talim Island, Binangonan and Cardona, Rizal, or in alternative site in Sembrano, Laguna.

The wind project will be done in two phases. The first wind farm is scheduled to start commercial operations on June 30, 2020 or 21 months after the Energy Regulatory Commission (ERC) issues its final approval.

The second wind plant will start running 12 months after the first phase.

It has offered its total capacity to Manila Electric Co (Meralco) at a rate of P3.50 per kilowatt-hour (kwh), subject to an annual escalation of two percent.

The offer, which is subject to competitive selection process (CSP), is significantly lower than the wind feed-in tariff (FIT) rates of P8.53 per kwh and P7.40 per kwh.

As for the A1E project, it is touted as the country’s first ultra super critical coal-fired plant to have less emissions and more efficiency in operations, estimated to cost around P135 billion.

It is one of the seven coal-fired power plants with power supply agreements (PSAs) with Manila Electric Co. (Meralco).

These PSAs—which involve 3,551 MW of supply from coal-fired power plants—did not go through competitive bidding since these were filed a day before the CSP policy took effect on April 30, 2016.

A1E’s PSA is currently pending with the ERC due to complaints. Four commissioners of the ERC were even suspended in December 2017 for delaying the CSP policy, which was supposed to start on Nov. 7, 2015.

But with the CEPNS, the Island Wind Energy and A1E project will be entitled to all the rights and privileges under EO 30.

EO 30 provides that government agencies concerned with energy projects should presume other agencies were able to act upon and issue their respective permits within a 30-day period.

If not acted upon five days after the lapse of 30 days, these projects are deemed approved.

Earlier, the EICC granted CEPNS for commerciality to the National Grid Corp. of the Philippines (NGCP) for its P52-billion Mindanao-Visayas Interconnection Project (MVIP).

The interconnection project was approved by the ERC in July 2017. The construction of the interconnection project is via Cebu and Zamboanga is targeted to be completed by 2020.

The EICC has recently issued CEPNS for pre-development to Aragorn Power and Energy Corp., a majority-owned subsidiary of Sy-led APC Group Inc.

Aragorn was granted a five-year geothermal service contract located in Kalinga province in 2008 but this was converted into a GRESC in late March 2010 to avail of the incentives provided under the Renewable Energy (RE) Act of 2008.

The project involves the development of steam fields that can generate around 100 MW of new capacity, providing an additional source of clean, indigenous and reliable baseload power to the Luzon grid.