Shortage of power reserves, not supply, expected next year – DOE

After months of sounding the alarm on the possibility of long brownouts next summer as a result of a power crisis early next year, Energy department officials admitted Monday there may only be a shortage of reserves in 2015, not supply.

Based on the DOE’s power supply outlook for 2015, a reserve supply shortfall of 21 to 31 megawatts (MW) may occur in the first two weeks of April 2015, DOE Assistant Director Irma Exconde told lawmakers at the hearing of House Energy committee on President Benigno Aquino III’s request for emergency powers.

The panel is tasked with determining the need to establish additional generating capacity based on the actual energy needs of the country next year.

Exconde said brownouts may occur if the power demand goes higher than the available supply and if the deficit cannot be covered by the 647-MW contingency reserves ideally maintained for the Luzon grid.

The DOE official, however, failed to state how frequently the DOE expects the brownouts to occur. “We can’t give a categorical answer [to that],” she said.

According to the National Grid Corporation of the Philippines (NGCP), the reserve deficit may lead to hour-long rotating brownouts once a week.

Aquino has asked Congress to pass a joint resolution authorizing him to contract additional capacity for the Luzon grid in anticipation of a power shortage of around 900 MW from March to June 2015.

DOE told: Go on crisis mode

The DOE’s admission that only a reserve supply shortfall — and not a supply shortage — is expected next year earned it the ire of not a few lawmakers.

Oriental Mindoro Rep. Reynaldo Umali, panel chair, asked DOE to firm up its projections on the effects of a possible energy crisis so lawmakers will have a better idea of the energy requirements of the country.

“It’s you who want Congress to approve the joint resolution as early as September. We’re trying our best to respond to the call of the President for this emergency power, which was requested by your Secretary… Please shift to crisis mode because we’re also in a crisis mode,” he told DOE officials.

Bayan Muna party-list Representative Neri Colmenares, who has opposed granting emergency powers to the President, said the DOE “has been painting the wrong picture” with their pronouncements about the negative impact a power crisis will have on the country next year.

“After all the hullaballoo, the issue here is the lack of net reserves, and not supply, which is different from what the DOE wanted to project in the last few months,” he said.

Misamis Occidental Rep. Henry Oaminal, meanwhile, expressed reservations about granting the Presidnt emergency powers after hearing the DOE at the hearing.

“I’ve been an all-out supporter for the President to have this special authority [to contract additional generating capacity]. But now it seems the DOE has to convince me more for Congress to grant the President’s request,” he said.

Interruptible Load Program eyed as solution

While the House is still inclined to give Aquino emergency powers, Umali said lawmakers are now eyeing the Interruptible Load Program (ILP) as the primary solution to the projected power crisis in the summer months next year instead of giving the government authority to lease or buy generator sets.

The program involves asking malls, factories and other business entities to use their own generator sets when the National Grid Corporation of the Philippines expects the supply of electricity to fall short of demand.

Based on the reports submitted to the House panel, a total of 847 MW has been committed by the private sector under the ILP, with a de-rated or usable capacity of 593 MW.

The House energy panel is also looking at potential capacities from the inter-connection of power plants (264 MW), new committed plants (690 MW) and implementation of energy conservation measures (1,722 MW).

“We will still approve [the President's request for emergency powers], but the provision regarding the rental of generator sets will no longer be there," Umali told reporters at the sidelines of the hearing.

The lawmaker said he is eyeing House approval of the joint resolution by Dec. 1 instead of the original deadline of Oct. 29. — JDS, GMA News