Power trip clipped

The Department of Energy (DoE) counted on enough coming capacity to bridge the shortfalls this year but the configuration of the power plants piques interest.

Based on DoE figures, 4,164.92 megawatts (MW) of power projects will come online anytime this year which will greatly add to the stability of the grid.

In the year to date, 161.2 MW has been added to the capacity of the electricity backbone, while 835.888 MW are in the testing and commissioning stage.

As a result of the interconnection projects of system operator National Grid Corporation of the Philippines (NGCP), power plants can be set up anywhere in the country to be linked to the electricity backbone.

DoE figures show baseload plants will comprise around 678.06 MW, while mid-merit plants will total 1,320 MW. Peaking plants will comprise 2,164.92 MW.

Thus, nearly half of the projects are power plants on standby and will be used only during hours of the day when the demand exceeds the usual capacity or the electricity of both baseload and mid-merit plants.

In previous administrations, to address the electricity crisis during the term of President Cory Aquino emergency powers were given to her successor, President Fidel Ramos, to execute contracts but many went to peaking plants that paid whether or not these were used.

So-called take-or-pay provisions in their contracts allowed these generation companies to collect fees from the National Power Corp.

Such collections piled up and were termed stranded costs that ran up to hundreds of billions which were passed on to electricity users through the power purchase adjustments in the monthly electricity bills.

The term was changed under a law that unbundled the cost of electricity but remained under the universal charges which are being paid up to this day.

The current mix is also revealing in that the much-hyped renewable energy is not reliable in providing the base requirements daily thus far.

The committed capacities are still mostly the reliable coal-fired plants, including four 150 MW plants or a total capacity of 600 MW under the Mariveles coal-fired project.

Another three 440 MW generators of the Batangas Combined Cycle Power Plant of Excellent Energy Resources Inc. (EERI) run on fossil fuels and are expected to operate by the fourth quarter.

Renewable energy will comprise 1,984.775 MW of solar capacity of which 966.294 MW are expected to come online by June 2024, while 494.888 MW are under testing and commissioning and can inject energy to the grid.

Meanwhile, at least 590 MW of battery energy storage system will also come online this year, with 32.42 MW already operational.

Such storage systems are crucial for RE projects to be able to deliver electricity consistently without being dependent on the constant blowing of the wind or the sunshine.

The anticipated increase in capacity will prevent supply deficiencies and potential power interruptions, particularly during peak demand periods, according to Energy Secretary Raphael Lotilla.

The integrity of the grid, however, still relies largely on the operators committing to supply electricity continuously as provided under the contracts they signed.

Recent developments, however, raise suspicions that the big guns that dominate the electricity spot market are gaming the trade to maximize their gains from the high demand for electricity.

Since the assumption to office of President Ferdinand Maros Jr., 1,274 MW of installed capacity became operational and has been injecting capacity to the grids, according to Lotilla.

The question remains how many power plants are reliably producing electricity throughout the day, including peak periods, and those that step in only when extra supply is needed?

The recent decision of the President to suspend the WESM clipped the windfall of the augmentation capacities which mostly comes from those operating the baseload plants.

The move of PBBM may result in the prevention of price spikes and ensure a stable supply because the electricity producers will have less reason to exploit the market.