Cavite factories asked to join ILP

by Alena Mae S. Flores, February 2, 2015
from Manila Standard Today

Power distributor Manila Electric Co. said it expects to convince locators at economic zones in Cavite managed by the Philippine Economic Zone Authority to participate in the interruptible load program.

Meralco senior vice president Lawrence Fernandez said the company continued to invite participants to joint the ILP program to help ease the tight supply of power in the dry months.

“We have also been working with Peza to enable locators in the Cavite public economic zone [in the municipality of Rosario] to join the program,” Fernandez said.

“We encourage all interested customers to sign up as soon as possible to allow for enough time for preparations ahead of the summer season,” he said.

Meralco said it was able to secure commitments of around 685 megawatts from ILP participants.  Under the program, the distributor and the participating captive customers shall enter into an agreement wherein the customers may be requested to deload from the power grid for a period of time.

The distribution utility and the customer shall agree on the number of hours in a month in which the customer can be requested to deload.

Meralco president Oscar Reyes earlier said the company expected to get 800 MW from the ILPs.

Reyes said power supply was expected to be tight in the dry months but this would be mitigated by the ILP, wherein participants would be compensated for deloading from the Luzon grid and running their generating sets to free up demand.

“To us, it’s going to be a tight summer. We are hopeful that the measures that are been taken in terms of ILP and the initiatives to keep Ilijan [power plant] running because that is big,” Reyes said.

The company earlier estimated that if 300 MW of capacity would come from ILPs, the generation rate impact would be around P0.075 per kilowatt-hour.

The additional rate would be shouldered by the government, once the joint resolution on emergency powers for President Aquino was endorsed by the Senate.

Under the version of the House of Representatives, the government, through the Malampaya fund shall, would bear the ILP compensation.

National Grid Corporation of the Philippines, which operates the power grid, issues yellow alert when power reserves become thin or fall below the single largest generating capacity in the grid, which is equivalent to around 640 MW.

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