Viewpoint: Intricacies of RE (Power 102-1)
By Panay News – Wednesday, July 17, 2024
I AM quite privileged to be among the 50 participants from Luzon, Visayas and Mindanao media re: Power 102 Workshop held in Taguig City on July 10.
Of course, thanks to my best friends Myrna Velasco (Manila Bulletin) and Alvin Elchico (ABS-CBN) for endeavoring such a media workshop aimed at equipping the provincial media with facts and figures about the volatile energy / power situation in the country. There, we knew a lot, including those “taboo” in renewable energy (RE).
But underlying are the intricacies that need to be understood in layman’s terms. No easy. Complicated.
But Power 102 made every topic more comprehensible amid “cloudy interpretations” as to some of the technicalities.
Like Negros Occidental, there’s a sad fact behind the glamor of solar power farms, among other RE facilities we have right now. The province is currently producing 510 megawattts (MW) of renewable energy or RE from 15 power plants but Is not benefiting from it.
Such candid revelation made by Frank Carbon, chief executive officer of the Metro Bacolod Chamber of Commerce and Industry (MBCCI) shocked me, of course!
Carbon said that based on recent energy audits, the province has a substantial RE output from 15 RE power plants that include:
* eight biomass
* six solar farms
* one battery storage system
But confessed Carbon, the RE output in Negros Occidental goes directly to the government retail outlet or the Wholesale Electricity Spot Market (WESM).
“And we can only buy it from WESM in case of emergency – and it is pricey,” Carbon lamented.
BURNING COAL
Worse, even though Negros Occidental generates substantial RE, most of the power consumed by Negrosanons is produced in Cebu and Panay by burning coal. Gosh! This is despite the fact that Negros Occidental has the largest solar farm in Southeast Asia – the 132.5-MW solar farm of Helios Power Corporation in Barangay Tinampaan, Cadiz City.
According to Engr. Joey Rey Malleza, head of the Industry Management Division of the Department of Energy (DOE) – Visayas, because solar and wind power sources are considered variables, they cannot be contracted by any local distribution utilities in Negros.
Same with biomass plants, Malleza said.
Thus, a bilateral contract for power purchase with any biomass plant will only be based on certain number of days or specific timeframe because, not all the time sugar mills in Negros have agricultural wastes to fuel their plants, Malleza explained.
FIT SYSTEM
But why are RE plants massing up in Negros Occidental?
What are the logics behind RE investment/business?
Because, Carbon said, RE investors are assured of payments for their outputs through Feed-In Tariff (FIT) System.
FIT System is pursuant to Section 7 of Republic Act (RA) No. 9513, or “An Act Promoting the Development, Utilization of Renewable Energy Resources and for Other Purposes”.
DOE Undersecretary Rowena Cristina Guevarra said that for Negros Occidental to avail itself of the current RE output, it needs to engage a Battery Energy Storage System (BESS).
“That’s the ideal move/step to do,” she stressed.
But the technology for BESS is costly. Only a few investors are gambling on this kind of investment, Carbon said.
So, what’s the take of the government in this kind of reality?
POWER SHORTAGE
Guevarra warned that Visayas, including Negros, may experience power shortage during summer next year.
She cited two main reasons – increasing power demand and potential congestion as transmission development cannot keep up with generation demand.
Guevarra also said there will be an 18% increase in power supply next year with the upcoming 4,000 -MW power that will include 2,000-MW fossil and another 2,000-MW RE.
Added by Malleza, current operating RE plants in Negros Occidental have no cap or limit to future entrants as long as they can obtain necessary permits and dispatch to sell their power.
Carbon said Negros Island needs not RE plants but rather on-island base-load fossil-powered plants like diesel, natural gas or coal-fired of at least 350 to 450-MW to cope with the growing economic demands in the new region.
The problem is, Negros Island has already been declared a “Green Island” that bans fossil-fueled power plants.
Remember in March 2019 when then Negros Occidental governor Alfredo Marañon Jr. issued Executive Order No. 19-08, declaring the province coal-free?
Then on June 2022, then Negros Oriental governor Roel Degamo made a similar move supported by their Provincial Board that passed a Renewable Energy Code (REC).
Declaring Negros Island “coal-free” caused the Ramon Ang-led San Miguel Power Corporation (SMPC) to withdraw its bid for both 300-MW coal-fired powered plant and 300-MW liquefied natural gas projects in San Carlos City, Negros Occidental in 2022 and 2023, respectively.
Carbon is insisting that for Negros Island to survive amid current challenging times, it needs base-load fossil power plants.
Well, Guevarra admitted, “Coal cannot be dislodged yet.” Why? She said of the upcoming 4,000-MW power project next year, four are coal-fired power plants with a total capacity of 1,300-MW.
LEARNINGS BEYOND KEEPS
The intricacies of RE are deep. The DOE and ERC must have to invest more in making the media understand the technicalities in the RE world. Simplicity matters for the understanding of the commoners.
If the media can’t understand energy reporting – the terminologies, technicalities, among others – be sure the power energy in the country will remain in “crisis”. The reportage will be a disaster.
Thus, thanks to Power 102 for the learnings. Truly beyond keeps./PN
