Philippines - Senator: Energy spot market in the Visayas not viable

Philippines - Senator: Energy spot market in the Visayas not viable

Senator Sherwin Gatchalian has expressed opposition to the proposed energy
spot market in the Visayas, saying it is not a viable measure to address the
oversupply of solar power in Negros Island.

Senator Sherwin Gatchalian, chairman of Senate committee on energy, who
spoke at the Philippine Councilors League meeting at the SMX Convention
Center here Thursday, said he disagree to the creation of spot markets for
different islands.

With the capacity of about 12,000 megawatts, the country is only a small
market thus, one grid system is actually a more flexible system, he added.

"Splitting the market will surely limit our choices," Gatchalian said,
adding that one advantage of having unified spot market is flexibility.

The senator noted that having only one spot market allows selling of power
from Negros to other areas in Visayas, Luzon and Mindanao.

Senator Juan Miguel Zubiri, author of the Renewable Energy Act, had earlier
said they were urging the National Grid Corporation of the Philippines
(NGCP) to hasten its transmission expansion program.

Zubiri said this would allow full interconnections among the regions in the
Visayas necessary for the creation of an energy spot market.

This is separate from the Wholesale Energy Spot Market (WESM), which may
have higher cost of power depending on the existing supply and demand.

"Negros Occidental currently has overcapacity of solar power as it is
producing more than its consumption requirement. Having no capability of
exporting electricity yet, many of these renewable energy resources are
lost," Zubiri added.

For his part, Gatchalian said the only problem was transmission, which would
hinder "delivery" of excess power from Negros to other areas in the country.

He said they had also been pushing the NGCP to upgrade its lines, which were
inadequate and small, adding that from 69 kilovolts (kV), it should be
upgraded to 250kV.

"We will probably conduct a hearing on the matter, and we will invite
Negrenses to attend," Gatchalian said.

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Link to Original Article: http://www.pna.gov.ph/articles/995675

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com