Some power firms face delays as work stops

By Lenie Lectura – March 18, 2020
from Business Mirror

SOME power firms are facing delays in the construction of their power projects as a result of the paralysis induced by measures to stop the new coronavirus disease (Covid-19).

“We are anticipating some delays because of travel restriction; technical expats can’t come to the Philippines. Also, shipment of materials and equipment are experiencing delays,” said Energy Secretary Alfonso Cusi said via text message on Tuesday.

Aboitiz Power Corp.’s GNPower-Diningin is the latest in the power industry to hit a snag. The baseload plant’s first 688-megawatt (MW) capacity will not come online until October this year.

In a report posted by brokerage firm Regina Capital Development Corp., “the most notable impact of the virus on [AboitizPower] is on its technicians for GNPower Diningin.”

The power firm’s management reported that some of its crucial EPC (engineering, procurement and construction) workers and technicians went to China during the Chinese New Year celebration and were unable to return to the Philippines due to the travel ban.

AboitizPower has moved to address the delay by shifting workers from Unit 1 to Unit 2 and hiring locals. “The management assured that the progress is on track and Unit 1 will likely come online by October. Meanwhile, Unit 2’s operations are hinged on the lifting of the travel ban,” Regina Capital said in its report dated March 16.

The second generating unit of another 668 MW is now targeted to be o line in 2021.

AboitizPower is developing a supercritical coal-fired power plant with two identical units with a net capacity of 668 MW each.  The two GNPower plants will help the company meet the 4,000MW target. Also, these are essential in the company’s commitment to securing a balanced energy mix to support the country’s energy security.

The first 688MW unit was supposed to go on line late 2019, while the second unit, which also has a gross capacity of 668 MW, was earlier targeted for commercial operations in 2020.  The company has set aside P41 billion in capital expenditure (capex) this year, mainly for the completion of the GNPower Dinginin.

Aboitiz Power gave assurances that it will preserve cash and spend this year’s capex wisely this year.

“The management acknowledged that the recent virus outbreak, which initially affected the construction of GNPower Dinginin, will put pressure on its operations. The firm will be prudent with its cash and its capital expenditures in order to brace for the headwinds,” said the brokerage firm.

Last month, Meralco PowerGen Corp. (MGen) said its Tarlac and Bulacan solar power projects, with a combined capacity of 135MW, are encountering delays because shipments of photovoltaic (PV) panels from China have not been shipped out.

For MGen’s Tarlac solar power project, company President Rogelio Singson earlier said that only “about 30 percent” of PV panel shipments were received. Two solar power projects were supposed to be commissioned this year.

“Every time there is a new engineer that comes around, we have to quarantine them for 14 days. We hope this is resolved sooner,” he said.

PetroEnergy Resources Corp. (PERC), an energy company with investments in petroleum and renewable energy, said it is exposed to operational risks.

Manpower for operations is affected due to state-imposed expanded quarantine, it said.

Also, scheduled power plant maintenance by third-party
foreign suppliers may be affected. “In preparation for this, PERC has communicated with its Operations and Maintenance [O&M] providers to strengthen its remote support and provide contingencies,” PERC said.

Moreover, it cited the risks relating to compliance with regulatory permits and submissions due to changes in work schedule both in public and private sectors.

Meanwhile, Greenergy Holdings Inc. said it was informed by its supplier, Hanergy Thin Power Asia Pacific Limited, that its shipment of solar products will be postponed until after the community quarantine period.

Expiring documents extended

Meanwhile, the Energy Regulatory Commission (ERC) said Tuesday that all Certificates of Compliance (COCs), Provisional Authority to Operate (PAO), Retail Electricity Supplier (RES) License, Certificate of Authority as WESM Metering Service Provider, Meter Type Approval (MTA) and Meter Shop Approval (MSA) expiring during the quarantine period are extended for 60 days from April 14, provided the required application for renewal is already filed with the ERC.

Power generation companies with power supply agreements with the Luzon distribution utilities and contracts with the National Grid of the Philippines (NGCP), the Market Operator and the NGCP for the transmission charges are directed to extend the period of payments of the Luzon distribution utilities for 30 days from April 14, without interest and penalties.

Also, the ERC extended the deadlines for payment of permit fees and other payables to ERC falling on March 15 to April 14 this year for 30 days. Likewise, all compliances, submissions, pleadings falling due on March 15 to April 14 may be filed within 30 days after April 14.

The ERC said these are in line with the declaration placing Luzon under enhanced community quarantine.