By Rjay Zuriaga Castor
The distribution utility of Iloilo City said it is also looking into the 80-megawatt (MW) power barge of Aboitiz Power Corp. as a contingency measure in case of sudden disruptions in generating units or transmission lines.
“Instead of Global Business Power Corp. (GBP), there’s one in Luzon that has a bigger capacity. It was Aboitiz Power that is also proposing that since they have an 80 MW power barge in Navotas,” said MORE Electric and Power Corporation (MORE Power) president Roel Castro in an interview.
Castro was referring to the four barges-mounted floating power plants of Aboitiz Power’s subsidiary Therma Mobile Inc. The diesel-fired power barges, moored in the Navotas Fishport Complex, have an installed capacity of 242 MW.
The MORE Power president noted that the Aboitiz Power barge could be more “advantageous” as it could be swiftly relocated to Panay Island without the need for extensive rehabilitation, unlike the proposal from GBP to use its 72-megawatt diesel-fired power plant in LaPaz.
“Immediately if there is approval from the Department of Energy (DOE) and Energy Regulatory Commission (ERC) on that, and there is agreement with National Grid Corporation of the Philippines, the barge can be promptly transferred and put into operation,” he said.
It can be noted that MORE Power is currently in negotiation for the ancillary supply of 60 megawatts with the GBP, the leading independent power producer in the Visayas.
Despite considering the GBP proposal as “an option”, Castro sees the Aboitiz proposal as more favorable.
However, the ancillary service procurement process is expected to be lengthy due to regulatory requirements imposed by the DOE.
“NGCP already wrote to the DOE saying that the proposal for the Aboitiz is feasible but there are regulatory approvals that we need to fast track and have not yet heard anything from the DOE,” Castro said.
Under the DOE guidelines, the procurement by the DU of the ancillary services is done by competitive selection process (CSP).
Castro expressed concern that going through CSP could delay the establishment of crucial support services necessary for maintaining power quality, reliability, and grid security.
“If it will undergo CSP, it would take much time and it may not happen at a time that it is needed,” he said, citing the days-long red and yellow status raised in the Visayas grid.
According to Castro, NGCP has asked DOE for an exemption from the CSP procedure and the declaration of the zonal ancillary services for Panay to contract the service but the latter has yet to respond to the request.
He emphasized that prolonged power outages in Panay Island should prompt DOE and ERC to expedite ancillary service procurement.
“I don’t know what other trigger would make them do an action on the issues that were raised by NGCP,” he said.
Mayor Jerry Treñas in a press conference last week emphasized the need to have an in-house power plant and ancillary service to ensure stable supply in Iloilo City and Panay.
“I’ve been talking to MORE Power and also to (Energy) Secretary (Raphael) Popo Lotilla and we always emphasized that we need an investor for an in-house power plant. If we do not have it, we would still be plagued by power outages,” he said.
