ERC sets new capacity limits per genco

MANILA, Philippines — The Energy Regulatory Commission (ERC) has set new capacity limits per generation company (genco) in terms of output and market share to foster competition and boost efficiency in the power sector.

In a resolution, the ERC said it increased the capacity limit in the Luzon grid to 4,605.25 megawatts from 4,552.79 MW per genco.

However, the power regulator decreased the limits for Visayas at 909.44 MW from 958.47 MW and at 1,026.25 MW from 1,048.88 MW for the Mindanao grid.

The capacity limits represent 30 percent of the total installed capacity in each grid.

Luzon has an installed capacity of 15,530.82 MW, up from 15,175.97 MW.

On the other hand, Visayas and Mindanao registered declines in their installed generating capacities (IGC) from 3,194.89 MW to 3,031.56 MW, and from 3,496.26 MW to 3,420.82 MW, respectively.

Meanwhile, the ERC also raised the limit on a nationwide basis from 5,446.78 MW to 5,450.78 MW, which is equivalent to 25 percent of the installed capacity of the national grid amounting to 21,803.1 MW.

The adjusted installed generating capacity (IGC) and market share limitations (MSL) per grid will be implemented until the next adjustment on or before March 15, 2020.

Earlier this year, the ERC extended the capacity limits for gencos until June 30 as it ensures an accurate annual review.

The power regulator sets the annual adjustment on the capacity limits for generation companies in terms of output and market share until March 15 of every year.

It deferred implementing new capacity limits as it found “a need to establish and adopt a standard for basis for the maximum capacity for generation facilities.”

The power regulator said the new limits were based on the maximum stable load (Pmax) of gencos, instead of their technical description as stated in their certificates of compliances (COCs).

Pmax is defined as the maximum demand in megawatts that a generating unit can reliably sustain for an indefinite period of time.

The adjustment is “pursuant to its mandate to promote free and fair competition in the generation and supply of electricity to achieve greater operational and economic efficiency and to ensure consumer protection and enhance the competitive operation of the markets for generation and supply of electricity,” the ERC said.