DoE to crack down on power plants in prolonged testing

By Adam J. Ang – April 5, 2020 | 4:25 pm
from Business World

THE Department of Energy (DoE) said it will more strictly enforce a two-month deadline for power facilities exceeding the allotted time for Test and Commissioning after noting uneven compliance with the rules.

In a draft circular, the DoE said 38 generation companies were in prolonged Test and Commissioning, based on data from the Independent Electricity Market Operator.

“The extended Test and Commissioning of generating facilities pose material effect to WESM (Wholesale Energy Spot Market) outcomes by displacing scheduled generators while not being required to comply with requirements for submission of offers or projected outputs,” according to the draft.

Test and Commission activities are part of the requirements for securing a Certificate of Compliance (CoC) which the Energy Regulatory Commission (ERC) issues to firms operating power plants and other generation facilities.

The CoC indicates that a facility was erected and connected in accordance with the Philippine Grid Code, Philippine Distribution Code and other rules and specifications and to determine readiness to deliver energy to the grid or distribution network.

Some firms in extended Test and Commissioning have remained in that phase for as long as 1,904 days as of April 1.

The DoE is enforcing the provision for all generation companies, including those firms applying for Feed-in-Tariff-eligible CoC.

It said that market and system operators, in consultation with the ERC, will review the maximum allowable period for the conduct of Test and Commissioning, considering factors such as technology limitations and procedural issues encountered during the implementation of the circular.

Should the firms fail to complete the conduct of their Test and Commissioning activities within the prescribed period, they shall apply for a one-month extension of its Provisional Authority to Operate from the ERC.

The DoE is currently soliciting comment on the draft circular until April 30.