The Senate has approved on third and final reading a Joint
Resolution which would allow President Benigno Aquino III to address any
potential power shortage during the summer.
Senator Sergio “Serge” R. Osmeña III, chair of the
Committee on Energy and the sponsor of Senate Joint Resolution 12, said the
measure would authorize the President to address the projected imbalance of
power supply and demand in the Luzon grid, particularly in the months of April
and May of this year.
Senate President Franklin M. Drilon, author of the
resolution, said that it was important for the country to avert a critical
electricity situation due to the expected effects of the El Nino phenomenon,
the 2015 Malampaya turnaround and continuing outages of power plants, which
could affect both businesses and ordinary homes.
“If we did not act, then it would have been a great
inconvenience and grave disservice to our citizens, especially ordinary
Filipinos who will have to endure the summer season without electricity,” he
said.
Apart from bringing a solution to the foreseen summer
outages, Mr. Drilon said that the resolution was part of efforts “to establish
a clear energy agenda and to address the growing concern over the perceived
inability of the country's power sector to keep up with the growing demand that
is intricately linked to the Philippine economy's immense economic
growth."
While the average electricity demand was projected at
8,700 MW, Mr. Osmeña said, the highest demand of power on the hottest day and
hour in April and May would peak at 9,000 megawatts (MW).
“Having 9,000 MW guarantees a brownout since a certain
number of power plants break down while some go on scheduled maintenance
because no power plant could operate continuously the entire year,” he
explained.
Mr. Osmeña said the resolution proposed “a more efficient
way to solve the power crisis in a much cheaper way” than what the executive
department earlier recommended.
He said the President would not be given a blanket
authority under the resolution nor would it provide exemptions from existing
laws such as the Clean Air Act and the Clean Water Act.
“The resolution is not mandatory and would enable
productions from hydro and gas plants to be tweaked,” Mr. Osmeña said.
The House version of the bill included the suspension of
pertinent laws, rules and regulation and made it mandatory for self-generating
facilities to participate in the Interruptible Load Program (ILP), a provision
not found in the Senate version.
Under the ILP, owners of generating sets would be asked
to de-load from the Luzon Grid and to use their own generator sets (gensets) at
certain hours.
Mr. Osmeña said the adoption of the ILP would cost
consumers a low P7 to P8 per kilowatt an hour as compared to the P35 per
kilowatt an hour under a Department of Energy proposal to lease 300 MW in
gensets at a cost of P6 billion for two years or P10 million per MW.
“In this manner, up to 1,400 megawatts may be de-loaded
for a few peaking hours on certain days,” he said.
He said Mindanao and Cebu had adopted the ILP system
since 2010 due to the chronic electricity shortages in the areas.
Meanwhile, the Senate also approved Senate Bill 2622 on
third and final reading today. The measure seeks to exempt power plants from
the mandatory implementation of Republic Act No. 9367, otherwise known as the
Biofuels Act of 2006.
Mr. Osmeña said Senate Bill 2622, which would augment
power supply when the Malampaya natural gas experiences supply shortages, would
allow natural gas plants to use pure or neat diesel as their alternative fuel.
“The Biofuels Act mandates the use of biodiesel. Pure
diesel cannot be utilized anymore anywhere in the Philippines, and since the
power plants were built before Congress passed the Biofuels Act in 2006, they
are not geared to deal efficiently with biodiesel, which clogs their filters,”
he explained.
He cited the Korea Electric Power Company (KEPCO), owner
of the 1,200 MW Ilijan gas plant, which decreased its production rate from 600
MW to 420 MW, or a difference of 180 MW per power plant, because of its use of
biodiesel.
Mr. Osmeña said an exemption from the Biofuels Law would
allow the Ilijan gas plant to deliver 160 more megawatts.
Mr. Osmeña, however, said the exemption has limitations.
He said the exemption could only be invoked when (1) there is a supply shortage
as determined by the DOE; (2) the pure or neat diesel is an alternative fuel of
covered plants; (3) the use of the pure or neat diesel will solely be for the
production of electricity; and (4) the exemption will be only for the duration
of the supply shortage.
Mr. Osmeña said the Committee on Energy had consulted and
coordinated with more than two dozen agencies, groups and parties to come out
with alternatives to avert the looming power crisis.
“The intent is to optimize existing assets and to bring
down the average cost of electricity for the benefit of the consumers,” he
said. (Pilar S. Macrohon, PRIB)
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