DOE warns of power supply tightening in May

Electricity consumers are advised to start adopting power saving practices as the country faces tightness in energy supply in certain periods of the year.

In a presentation before the Joint Congressional Power Commission hearing at the Senate, Energy Secretary Carlos Jericho Petilla said Luzon, Visayas and Mindanao each face periods of tight supply or outright deficit.

For 2014, electricity demand in Luzon is expected to peak around May at about 10,300 to 10,400 megawatts.

“Peak demand for 2014 is about 10,400 MW more or less but when we factor in outages, its about 10,500 MW,” Petilla said.

In the same presentation, data from the Department of Energy (DOE) showed that available capacity for that period was about 10,500 MW and only one committed project was scheduled to go online before peak demand would kick in.

The P3.5-billion, 20-MW Maibarara geothermal plant in Sto. Tomas, Batangas is expected to add capacity to the grid come March. This means supply will be very tight sometime in May.

In the Visayas, peak demand is expected to hit 1,781 MW by May before tapering off sometime in June and rising again by September onward. While the combination of available capacity and committed capacity is expected to reach 1,833 MW within the year, a big chunk (132MW) of this may go online from June onward, leaving the grid with a deficit of about 80 MW sometime in May.

In Mindanao, which is already in a deficit, peak demand is expected to reach 1,760 MW sometime in July and possibly breach 1,800 MW by December. Available and committed capacity is so far at 1,536 MW. That leaves Mindanao with a deficit of about 200 MW, Petilla said.

Sen. Sergio Osmeña III and Sen. Grace Poe, commenting on the Philippines’ need for additional power generation capacity, asked the DOE to submit findings on its ongoing public consultations on possible rules changes that would help drive investment.

Petilla said that while the consultative and focus group discussions have just started, some initial feedback had much to do on tweaking existing rules. “(Feedback) had more to do on rules governing the  Epira (Electric Power Industry Reform Act of 2001) and how they can be implemented properly,” Petilla said.

In response to calls for amendments to Epira amid the ongoing controversy over the P4.15/kWh power rate hike last December, the DOE conducted consultations with its attached agencies, other government agencies, donors, generators and suppliers, distribution utilities and other power market stakeholders in Luzon. It also held two focus group discussions in Luzon: the “consumer/NGOs/labor groups/academe” and the one for “business sector/chamber of commerce.” These were both held on Jan. 29.

This month, three FGDs are set in the Visayas. One is for “generators and distribution utilities” at 9 a.m. on Feb. 6, tentatively at the Cebu Parklane. Another one is set for “consumer/NGOs/labor groups/academe” to be held at 1 p.m. on Feb. 6 at the same tentative venue. A third FGD, for the  “business sector/chamber of commerce,” is set for 9 a.m. on Feb. 7 at the same venue.

Also this month, three FGDs are set in Mindanao. One is for “business sector/chamber of commerce” at 9 a.m. on Feb. 6 at the Waterfront-Insular Hotel in Davao City. Another is for “consumer/NGOs/labor groups/academe” at 1 p.m. on the same date and in the same venue. “Generators and D.U.s” will have their FGD at 9 a.m. on Feb. 7 in the same hotel.

Lastly, a consultative dialog on “Ensuring Energy Security at a Reasonable Cost” is set in the NCR on Feb. 12.