Meralco eyes power supply deals with JG Summit, other firms

By Riza T. Olchondra, January 18, 2015
from Philippine Daily Inquirer

MANILA Electric Co. is working on interconnection deals with owners of large-capacity power generation sets and with a state-owned hydroelectric power plant.

In its latest report on the Interruptible Load Program (ILP), the main coping mechanism for the power crisis in Luzon this summer, Meralco said there were prospects for interconnection with the JG Summit Group.

JG Summit has indicated exportable capacity of 19MW from the diesel-fed generator set in Calamba, Laguna and one in Pasig City. Meralco said the diesel engines in JG Summit’s facilities could either be used to de-load as in the ILP program or be directly connected to supply power to the power distribution network via a power purchase agreement.

So far, 936.96MW of pledged and potential capacity has been listed under the ILP.

Another possible interconnection deal will  involve the 20-MW Botocan hydroelectric power plant of National Power Corp., whose assets are being managed by Power Sector Assets and Liabilities Management (PSALM) Corp. The Botocan facility, located in Laguna, is available with the recent restoration of the Caliraya-Botocan transmission line.

Botocan’s output may be the subject of a PPA or it may sell its output through the Wholesale Electricity Spot Market, the energy trading platform where Meralco may get its “uncontracted” electricity supply needs.

Napocor, for its part, said its IPP contracts management department was able to successfully bid out and implement the restoration work for the Botocan-Kalayaan 115kV line last Aug. 27, 2013. Restoration work is reportedly done, enabling Napocor to transmit the 20MW capacity of the Botocan Hydroelectric Plant in Majayjay, Laguna to the Luzon grid. Botocan is part of the 728-MW Caliraya-Botocan-Kalayaan (CBK) hydropower plant complex, which is among the power assets PSALM wants to dispose of.

A third prospect for interconnection is Millenium Energy Inc.’s 100-MW diesel power station in Navotas, possibly by March 2015.

Energy Secretary Carlos Jericho L. Petilla said Millenium was committed to supply Meralco’s network by summer and that talks were ongoing for the interconnection.

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