Energy stakeholders to implement ‘gas swapping’ deal to ensure supply during dry months

Energy stakeholders have agreed to implement a “gas swapping arrangement” to ensure a stable power supply amid projected thin reserves during the peak demand in dry season months from March to July this year.

Minutes of a meeting last December 27, called by the Department of Energy (DOE), showed that energy stakeholders and DOE officials laid out a plan to keep sufficient power supply amid the expected yellow alerts.

On Monday, Energy Undersecretary Rowena Guevarra said the Luzon power grid is expected to be placed under yellow alert 12 times — during the year’s week 11 in March, weeks 13 and 17 in April, all weeks of May, weeks 22 and 23 in June, week 35 in September, week 42 in October, and week 47 in November.

A red alert indicates that there are no ancillary services or a generation deficiency exists, while a yellow alert indicates that the grid has thin reserves based on supply and demand.

Among the measures considered is the implementation of a “gas swapping arrangement,” wherein 80 standard cubic foot of First Gen’s Malampaya banked gas allocation would be sent to operate the South Premiere Power Corp.’s 1,200-megawatt (MW) Ilijan power plant, one of Luzon’s largest power generators.

The gas swapping arrangement will commence in March and last until June this year.

The arrangement will be submitted to Prime Energy —the operator of the Malampaya gas-to-power gas field.

Once the arrangement is in place, the Ilijan plant is expected to generate a minimum of 400 megawatts to a maximum of 1,000 megawatts to help fill the gap from March to July this year which is expected as a result of an increase in demand.

The DOE is estimating that the potential shortage of electricity in the so-called peak months would be up to 1,000 megawatts.

“Given DOE’s main objective to lower electricity prices, it commits to help with all government processes required to implement the gas swapping agreement (including endorsement to ERC [Energy Regulatory Commission]),” the minutes of the meeting read.

In an interview on PTV’s public briefing, Guevarra said the DOE continuously coordinates with stakeholders to ensure that there will be no power supply disruptions in 2023.

The Energy official said there is an expected 1,000 MW additional capacity in the Luzon grid from committed power projects.

“Sa Visayas 58.7 MW, at sa Mindanao 94.9 MW ang magiging dagdag na supply,” she said.

Energy Secretary Raphael Lotilla has, likewise, said that while supply side issues are being addressed, demand side measures such as energy efficiency should be taken as less supply would be needed.—AOL, GMA Integrated News