Self Generating Facilities (SGFs) have a combined power generating capacity of more than 3,000 megawatts (MW) in Luzon. This is according to data gathered by the Joint Congresssional Power Commission (JCPC). The Department of Energy (DOE) is forecasting a capacity shortfall of 300 MW by March 2015, mainly due to delays and cancellation of committed power projects. But it wants a spare capacity of another 800 MW to prepare the country for what it says as the effects of a weather disturbance called El Nino. Congressional leadership has been advocating the use of SGFs under a Interruptible Load Program (ILP). During congressional hearings on the matter, however, DOE is insistent on leasing capacity from foreign suppliers. For the required legal cover for doing this, DOE has to request the President to invoke Section 71 of EPIRA for Congress to issue a Joint Resolution to give the President Emergency Powers. DOE projects a cost of about of Php 1.0 billion per 100 MW per year. Power suppliers require a minimum period of 2 years for leasing. This means that for addressing a projected shortfall of 3 months next year, DOE is pushing for a Php 6.0-billion-price-tag solution. In contract, if the SGF owners are offered the same compensation as the foreign suppliers, it would only cost the government Php 0.75 billion or 1/8 of the price tag if the capacity is sourced overseas. This is because the SGF generating facilities are already in the country and, therefore, should be amenable to a 3 month lease. The cost difference is a staggering Php 5.25 billion! During a casual conversation between DOE USEC Donato Marcos and BioSyn PowerGens Chief Technology Officer, USEC Marcos suggested that a proposal be submitted to the Office of the DOE Secretary on how to facilitate widespread ILP participation of SGFs. Last October 7, a proposal was emailed to USEC Marcos. A copy of that proposal is embedded here for everbody to study. If you think that it makes sense, please feel free to visit us at our facebook page and participate in our discussions. mindoroenergycity/a-proposal-to-facilitate-voluntary-ilp-participation.html A potential savings of Php 5.25 billion is worth talking about! Thank you. PS. If you wish to express your thoughts to any of our DOE officials, you can communicate with them directly via email. Here is a link to their contact particulars: https://doe.gov.ph/about-doe/how-to-reach-us/office-directory
Posted on: Sat, 11 Oct 2014 08:40:44 +0000
Trending Topics
Recently Viewed Topics
© 2015