Mindanao power body steps up measures to bridge supply gap

An inter-agency body mandated to spearhead efforts for immediate and long term solutions aimed at improving the Mindanao power situation moves to fast-track measures to bridge current supply shortfall.    
The Mindanao Power Monitoring Committee (MPMC) led by the Mindanao Development Authority (MinDA) and co-chaired by the Department of Energy (DOE) had asked for immediate approval of a pending regulatory petition for new rules governing the Interruptible Load Program (ILP).
MinDA expects the ILP measure to be able to draw around 100MW of capacity by encouraging large establishments all over Mindanao such as malls, factories and packing plants to run their standby generator sets at peak hours to ease up demand in the grid.
“If we have just about 50MW made available within the grid because malls and industrial centers opt to use their generator sets, then that capacity would reduce brownout by at east 2 hours,” said Secretary Luwalhati Antonino, MinDA chair.
The Energy Regulatory Commission (ERC), also a member of the MPMC has slated the public hearing for the ILP petition in Davao City on April 10. MinDA had previously asked Davao Light and Power Company (DLPC) to undertake a study and prepare the petition in behalf of Mindanao distribution utilities.
“The filing for ILP petition is a necessary act by a distribution utility before ERC can amend its rules and effect new recovery rates making the scheme attractive to ILP participants,” Antonino stressed.
Antonino said the current ILP rate which allows only for fuel recovery isn’t seem to be encouraging for mall owners or factories because it’s lower than the cost needed to run the generator sets. The prevailing rate is based on ERC’s ILP ruling in 2010.
“We’re halfway through the 30-day period required to complete the process, therefore we hope ERC could come up with a favorable ruling within the month,” she added. 
Other than the ILP, MPMC also expects the reopening of the 100-MW Iligan Diesel Power Plant (IDPP) end of this month to be generating 15MW power to the grid. As continuing rehab for other IDPP generating units are being simultaneously carried out, capacity is expected to go up to 30MW by April, 50MW in May and the full capacity by August.   
MPMC noted that the IDPP capacity had already been fully contracted by electric cooperatives serving the cities of General Santos, Zamboanga and, Iligan which are experiencing rotating brownouts.
Among the other measures being pushed by DOE include tapping of modular generator sets which can be rented for a fee and would be available within six to eight weeks upon agreement between Mindanao electric cooperatives and generator providers. [MinDA]
The National Electrification Administration (NEA) and the Association of Mindanao Rural Electric Cooperatives (AMRECO), also members of MPMC have set a meeting with potential gen set suppliers on April 9 in Cagayan de Oro City in order to determine the most viable rental options and the indicative rates.
The DOE noted that these generator sets could provide temporary supply of power until new capacities will be online by 2015.  
Meanwhile, MPMC is also rolling out the public consultations for the proposed setting-up of Interim Mindanao Electricity Market (IMEM) wherein currently available but uncontracted capacities from embedded generators of distribution utilities could also be tapped through electricity spot market.
IMEM is a mechanism designed to provide an immediate venue for transparent and efficient utilization of additional capacities to address Mindanao’s energy supply shortfall. The scheme will allow energy distributors to sell power supply from its embedded generators to areas and cities that are experiencing power shortage. 
“We are currently working to provide central dispatch and price for available capacities while consultations are scheduled this month for the draft market rules,” said Energy Secretary Carlos Jericho Petilla during a recent power forum in General Santos. 
Petilla has ealier directed the Philippine Electricity Market Corporation (PEMC), which is operating the Wholesale Electricity Spot Market (WESM) for Luzon and Visayas to draft the IMEM rules and present this for public consultations slated on April 10 in Cagayan de Oro City and April 12 in Davao City.
Since its creation in July 2012, the MPMC have convened on several occasions to work on the recommendations submitted during the Mindanao Power Summit held in April last year.    
“Between now and the time that more sufficient power supply is up for Mindanao, MPMC will exhaust efforts in finding solutions to bridge this temporary power supply shortage,” said Antonino.  
“As for the Agus hydro power plants, the government is spending a total of 4.318 billion pesos for the Balo-I flood control project, which will maximize output of Agus 2, and the uprating of Agus 6 units 1 and 2 which will increase its output as well as extend the facility’s lifespan by another 30 years,” she added. [MinDA]