2 rehabilitated power plants may spare Luzon grid from brownouts

MANILA, Philippines - Luzon grid may gain "saviors" in the Ambuklao hydro and Bacon-Manito geothermal plants to tie in its power supply needs during the widely-anticipated energy-scarce transition of two years.

The Ambuklao plant of the Aboitiz Power group will contribute 100 megawatts to the grid's supply starting second half of this year; while the Bacon-Manito facility of the Energy Development Corporation (EDC) of the Lopez group is expected to yield additional capacity of up to 120 megawatts -- if it would not be able to ramp it up to its 150-MW installed capacity.

Both assets were acquired by the company-buyers from the Power Sector Assets and Liabilities Management Corporation. These facilities were not in operation mode when turned over, but the new owners invested for their rehabilitation so they can immediately contribute to the grid's supply.

The years 2012-2013 have been viewed as the toughest periods for the Luzon grid when it comes to meeting its power supply requirements. But with the capacity from the two plants coming on stream, it is expected that supply dilemmas will ease a bit until the entry of the 600-megawatt coal plant of GN Power in 2013-2014.

In fact, the next round of investments for the grid are seen needed by 2016 to 2017 yet provided that the economy will just be growing at a moderate pace.

For this year, while reserve capacity in Luzon remains strained, it has been held that the cooler temperatures and wet summer season will prop the grid for a year of less power interruptions until PAGASA reversed that announcement this week.

When asked about probabilities of rotating brownouts, Energy Secretary Rene D. Almendras forthrightly admitted that "he cannot totally say", yet he assured that supply would be enough.

As to the other stresses in the power system, such as congestion in the transmission network, the energy chief noted that he cannot categorically gave word that this will not cause power outages - just as what happened on March 26 this year.

"The generation companies have been very cooperative. Most have been complying with the GOMP (Grid Operations Manual Protocol) - we are monitoring the GOMP on a daily basis," he said.

With supply still relatively on a stable level, Almendras noted that no power facilities have been designated as must-run units (MRUs). In fact, even the newly-turned over Malaya thermal power facility has been reportedly filled with fuel supply that this can be switched on anytime that any of the baseload plants would shut down.

The last 'yellow alert' experienced in the Luzon grid was during a forced outage at the Sual facility two weeks ago. Nevertheless, the incident did not cause rolling brownouts because there have been enough supply then to offset lost capacity from the downed coal-fired unit.