by Myrna Velasco – January 20, 2016
from Manila Bulletin
Power utility giant Manila Electric Company (Meralco) has sealed an interim power supply agreement (IPSA) with 1590 Energy Corporation for capacity purchase of 170 megawatts from the Bauang thermal power plant to beef up its summer supply.
In a disclosure to the Philippine Stock Exchange (PSE), the utility firm noted that its capacity purchase will cover both firm and non-firm contracted capacities.
The period covered for the firm 170MW capacity will be from February 26, 2016 to July 25, 2016.
For the non-firm component of the off-take deal which is also of 170MW capacity, the contract duration will be July 26, 2016 to February 25, 2017.
“The IPSA shall become effective upon provisional or final approval of the Energy Regulatory Commission (ERC) and shall expire on February 25, 2017 unless terminated earlier or extended,” the utility firm said.
It emphasized that the IPSA “was entered into to address the company’s capacity requirement arising during the summer months and from scheduled maintenance shutdowns or forced plant outages.”
Meralco added its additional contracted capacity will also shield it from exposure to probable pricing volatilities in the Wholesale Electricity Spot Market.
Reliable power supply especially in the summer months this year will be highly critical as the presidential elections will be happening on May 9 this year. The polling period will stretch from the actual casting of ballots to counting of the final results.
The Department of Energy (DOE) has already issued a Circular directing all power industry players to prudently observe efficient operations and delivery of electricity service during the election period and the entire stretch of the summer months.
It remains a tight supply scenario this year as some power plant projects are delayed and the aging plants are still threatened by frequent forced outages.