Meralco to provide electricity to remote Quezon island
By Lenie Lectura – March 1, 2019
from Business Mirror
THE Manila Electric Co. (Meralco) will soon provide electricity to a remote island in Quezon province after it secured board approval to deploy a microgrid system composed of a solar PV-battery-diesel hybrid.
The Energy Regulatory Commission (ERC) defines microgrid as a localized grouping of distributed energy sources, loads and storage mechanism that can operate both as part of the central grid or independently as an island.
“We just got approval from the board. We already have a hybrid solution with solar panels, batteries and gensets,” Meralco Senior Vice President Alfredo Panlilio said.
The Meralco official said the plan, subject to the approval of the ERC, is for Meralco to install a total of 2.5 megawatts of solar power capacity, combined with battery-energy storage of up to 4.2 MW and diesel-run generating set of 1.9 MW. The rollout will be done in phases.
Initially, 1.4 MW of solar panels will be installed. Meralco will also deploy a 2.1-MW lithium-ion battery for an energy-storage system and a 1-MW power-generating set that runs on diesel.
“The commercial operation date is end 2019 for the first phase, which will serve 600 households and 10 resorts then we build it up until 2024. It’s a five-year development because there will be resorts to be built there,” Panlilio said. Meralco is expected to provide electricity to 160,000 households upon completion of the five-year rollout. The rates that will be charged to consumers are relatively cheaper by half.
“Much cheaper than what they are paying now. Maybe, P20 to P22 per kilowatt-hour. It’s a very good solution to address power in Cagbalete. Power in Cagbalete Island is not 24 hours that’s why we opted for hybrid solution composed of solar, battery and genset. Eventually, a few years down the road, when battery storage is cheaper, you might be able to phase out gensets to provide more storage,” Panlilio said.
Meralco would need to seek approval from the ERC to implement the hybrid solution and charge rates accordingly. The utility firm is expected to file its application next week.
Meralco utility economics head Lawrence Fernandez said separately the company has a pilot microgrid project in the same island.
“Yes, this is different. What we have now is the pilot project. The board discussion is for the planned expansion, but also in Cagbalete Island,” Fernandez said.
Under the pilot microgrid project, Meralco will install a 60-kWp solar PV as the main power plant, paired with a 150-kWh lithium-ion battery energy-storage system that will charge during the day and provide electricity at night.
Also, there are two units of 30 kW diesel generators for peak demand support during early evenings. Only one is planned to operate at a time with the other serving as a backup.
“Meralco has a pilot microgrid project, with the generation component composed of a solar PV-battery-diesel hybrid. The hybrid power plant will utilize a centralized microgid controller for balancing and operating the whole system. It will serve about 200 homes that currently do not have 24/7 electric service. There is an estimated 800 households on the island,” Fernandez said.
Meralco is also looking at providing a similar microgrid system in Palawan and Iloilo City.
Panlilio also said the Ayala group has asked Meralco if it can provide electricity in Lio Villas Resort in Palawan and a resort in Sicogon Island, Iloilo.
“Ayala has been talking to us for an underserved area for Palawan. They are asking us to look at Lio Resorts and Sicogon. Talks are still in the early stage. They are asking us whether we could have a solution for that so we are doing surveys and checking what is the requirement.
Ayala’s properties might be the same size of Cagbalete because these are prime areas for resorts. I would think without looking at the numbers yet, they would be bigger than Cagbalete,” Panlilio said.
