The Market Monitor Minding the Nation's Business
By Riza Lozada
The Department of Energy (DOE) has reactivated its so-called interruptible load program (ILP) that will tap privately owned generators to ease the currently tight power supply caused by the prolonged dry season.
Under the ILP, private firms are encouraged to use their own generators for which they will be compensated by the government.
Energy Secretary Zenaida Monsada said the DOE, in coordination with the Manila Electric Co. (Meralco), has identified large power users that can generate 826 megawatts in their own capacity under the ILP to “help augment the power supply.”
The ILP is already being implemented in the Visayas and Mindanao grids before being adopted in Luzon on the suggestion of Meralco.
The ILP allows participants to recover costs through pass-on charges to end-users of electricity, Monsada said. This means the compensation to ILP participants would be taken from the monthly electricity bills of consumers.
The ILP would be most needed in times of yellow and red alerts, or when the generated electricity is short of the peak demand.
The National Grid Corp. of the Philippines (NGCP) has declared the Luzon grid on yellow alert several times in this month.
Energy-conservation initiatives were also solicited from all electricity users, owing to the tight power supply resulting from “prolonged forced outages of some plants coinciding with other plants’ maintenance shutdown.”
On April 14, the NGCP reported that from 2 to 4 p.m., the Luzon grid was placed under yellow alert after the 460-megawatt Quezon Power Philippines Ltd. Co. (QPPL) coal-fired power plant in Mauban town, Quezon province, went offline.
“Reserves fell below required levels due to generation deficiency caused by the unplanned outage of generation facilities,” the NGCP said in an advisory.
A yellow alert means the available reserve is lower than the biggest unit of the grid, in this case, the 647-MW Sual coal-fired power plant.
The distribution utility also urged its customers to practice energy efficiency, while it called on ILP participants to prepare their generator sets to deload their demand. The ILP participants have a deloading capacity of 826 MW.
The Aboitiz Power Corp. has disclosed to the Philippine Stock Exchange Inc. (PSEI) that Therma South Inc. Unit 1, with 130 MW in net capacity, tripped at 2:40 p.m. on April 6. The company added that, after an investigation, it was found that the unit had a boiler tube leak.
“The repairs on Unit 1 are expected to last 14 days. Unit 2 (130 MW net) remains operational,” its disclosure said.
As of April 12, the DOE reported the resumed operations of Sual Unit 2, with a supply of 647 MW; Tiwi Geothermal Plant Unit 6, with 43 MW; and Malaya Power, with 330 MW.
“The DOE continues to monitor the developments of the 300-MW Calaca Unit 2 and the 119-MW TMO Units 5 and 6 that were on forced outage, while also ensuring that plants that are on planned maintenance shutdowns are on schedule to come on stream before the critical election period,” its statement said.
“In facing this critical phase concerning our power supply, we are counting on the collective effort of everybody to practice energy efficiency and/or by adjusting the usage period of electric appliances away from the peak hours (10 a.m. to 3 p.m.), such as, ironing of clothes, unnecessary use of computers, and even laundering of clothes with washing machines and driers, as any contribution really does matter,” Monsada said.
She added that energy consumers are urged to set the thermostat of air-conditioning units at 25-degrees Celsius