Philippines: DOE bats for flexible power generation mix

Philippines: DOE bats for flexible power generation mix

The Department of Energy (DOE) is batting for a flexible energy mix based on
the country's power requirements to foster competition as well as maintain
an adequate and reliable electricity supply.

Energy Secretary Alfonso Cusi said the agency has formed an energy mix
comprising of 70 percent baseload, 20 percent mid-merit and 10 percent
peaking, instead of setting a cap per technology.

Baseload power plants can provide the minimum level of demand in a power
grid over 24 hours while mid-merit plants are those that can fill the gap
between baseload and peaking plants which run during peak hours.

"What we see is we want it to be competitive so we're not putting a quota
per technology," Energy Secretary Alfonso Cusi said despite calls from the
industry to come out with energy mix policy soon to direct power developers
to invest in specific technologies.

Under such scenario, each technology will compete with each other and
therefore bring down the cost of electrictiy, Cusi said.

This leaves the decision to power developers on which technology they will
be investing in as long as they meet the country's power requirements.

"We want an energy mix where there will be competition so coal, gas,
geothermal, hydropower or nuclear can compete in that 70 percent baseload.
They are going to compete with each other and then you will really
experience the CSP (competitive selection process) aimed to lower power
rates," Cusi said.

Specifically for baseload, this will ensure ample power supply for the
country to prepare for industrialization, the Energy chief said.

"We are also in a situation that our energy supply is not that sufficient.
We are still having an intermittent supply. We are experiencing, yellow, red
alerts and brownout. We don't like that so what the DOE is saying is we want
power and we don't care which technology as long as it is meeting the
standard that is required us," Cusi said.

Cusi has been underscoring the importance of laying down a balanced energy
mix policy between fossil fuel and renewable energy sources tailored to
support the country's economic requirements and development.

Cusi said the country needs diversified energy sources to support our
growing economy, requiring "to build more baseload power plants while also
aggressively pushing for clean energy."

The energy mix, however, is not set in stone and can change overtime
depending on the country's power needs.

"But of course, along the way, that could change depending on technology
development so they just have to adjust," Cusi said.

Under the Philippine Energy Plan for 2016 to 2030, the Philippines is
projected to have a demand and reserve requirement of 30,189 MW by 2030. Of
the total projection, 17,925 MW is already installed while a little over
12,000 MW is still needed.

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Link to Original Article:
http://www.philstar.com/business/2016/12/05/1650265/doe-bats-flexible-power-
generation-mix

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com