As power use dips, plants urged to scale down to save on costs
By Lenie Lectura -March 24, 2020
from Business Mirror
WITH the decline in power consumption, particularly in the commercial and industrial sectors, conglomerate San Miguel Corp. (SMC) on Monday proposed that power plants scale down their production in order to save on cost.
SMC President Ramon Ang, who also leads power subsidiary SMC Global Power Holdings Corp., pointed out that it makes sense to produce only what is necessary in order to save on fuel, among others.
“The Covid-19 crisis is a worldwide issue, and while we all hope for a resolution soon, it’s better if we are prepared if it extends. If there is excess capacity today, particularly since major business and commercial centers and industries are practically shut down, then perhaps government can require power plants to only produce what is needed in order to save on fuel,” Ang said.
Ang said that while there is no issue with power supply today, it would be prudent for power facilities to save as much fuel to ensure continuous operation.
Demand plunged
The Department of Energy (DOE) earlier observed that electricity demand plunged by about 30 percent because of the enhanced community quarantine to contain the spread of Covid-19.
Energy Secretary Alfonso Cusi said in an earlier text message that residential demand increased but commercial demand decreased. “For instance, March 16. The actual available supply was 13,000 megawatts while demand was 9,500 MW. The net effect is that the reduction in commercial is greater than the increase in residential demand,” explained Cusi.
Some power players said “the practical thing is that plant production should be commensurate to the demand.” Besides, they added, there is difficulty in procuring imported raw materials and supplies given the enhanced community quarantine in Luzon. Ang pointed out there is sufficient power to supply the requirements of the country for the duration of the enhanced community quarantine, but given the slowdown in economic activity, power facilities would have to scale down production to save on fuel and further secure supply for the next coming months.
“We will continue to operate all our power facilities safely despite the challenges we face and make sure that we supply power where it’s needed. We have prepared for these types of situations and we are ready,” Ang said.
SMC Global Power owns and operates a multi-fuel portfolio of baseload power plants around the country. Its power generation facilities are located in Bataan, Bulacan, Zambales, and Davao Occidental. It also administers some 2,500 MW of capacity from the Sual, Ilijan, and San Roque plants.
“As far as our facilities are concerned, we can assure sufficient and uninterrupted capacity supplied to the Luzon and Mindanao grids,” Ang said.
With the declaration of Covid-19 as a global pandemic by the World Health Organization (WHO), SMC Global Power activated its Business Continuity Plan, designed to ensure constant supply, employee safety, and operational reliability.
“Our plants are equipped to handle the demand for reliability. Protocols have been activated in our power plants as a response to crises such as pandemics. This enables our people to operate our facilities with the necessary guidance that ensures their health and safety during such times,” Ang said.
Considered as part of basic services, SMC Global Power has been working with the DOE, the IATF, local government units, and law enforcement agencies on properly navigating through the enhanced community quarantine. This includes close coordination on the movement of critical people and supplies needed for the continuity of its power plant operations.
