I havent heard of it until now, and I dont know much about it. Can you forumers help me out and tell me the story and maybe some pics? :)

I heard it cost the government a lot and never got opened... sayang lang... :ohno:

that nuclear power plant was (I believe) the Bataan Nuclear powerplant that is nestled on the coast of Bataan and on top of a fault line... it was built during the Marcos regime but was deemed not to be used due to safety hazard.... plus the ban of nuclear plants in the country... :D

videos even show the control panel intact... even with tags (i don't know what they're for though). They say it's costing government millions just to maintain the giant white elephant.... which produces no electricity at all!

Sayang, is it possible, with a few modifications, to make this power plant safe for use to provide the much needed electricity?

i don't think so.. coz nuclear power is banned in the constitution

and also there's a lot nuclear waste that's gonna make people sick. i'd invest on more cleaner and safer forms of electricity.

and also there's a lot nuclear waste that's gonna make people sick. i'd invest on more cleaner and safer forms of electricity.

I agree with you @renell.

is it really banned in the country?

been there last March 20, and ive seen these huge Cooling towers. The village supposed to house the employees are used as vacationeers' transient houses. They are very American. I mean the houses.

This means of power generation is one of the most efficient. You could generate a lot of power out of few grams of radioactive element. There are several advocates of this, but the environmentalists are all up against it. Well, I would believe them, there is really no efficient means to dispose off the radioactive wastes. There was even a proposal before to dispose it off on some other terrestial body or on the abbyss. And there's this Chernobyl dilemma.

The govt has invested much on this Bataan power plant...everything were already laid down. the facilities, cooling towers, the docks, etc. but these all turned out to be another white elephant. Sigh! i have no stand tho.

Article II, Section 8 of the 1987 Constitution states that "The Philippines, consistent with the national interest, adopts and pursues a policy of freedom from nuclear weapons in its territory." I think that's the only provision in the Constitution as regards nuclear anything. And there's Republic Act 6969 which prohibits the importation and dumping of nuclear wastes on Philippine territory.

Why on earth did the government invest millions for the Bataan Nuclear Plant
if Nuclear Power is banned in the constitution?I know managing a Power Plant in the country is a wide step for the development of the country and in many major sectors as well but I am not sure if the country is already ready for a Power Plant. If it leaques, it will cause sicknesses throughout Luzon and pollution in the South China Sea. It will destroy the environment, that's why many environmentalists are against it.

Can anyone post a picture of it?

If the country is smarter, why not produce electricity in a much modern and safer way like those wind power producers that look like windmills in the Netherlands or Germany or solar power devices that look like glasses placed on top of houses and buildings?It will be easier if the country will get its energy from the sun, it's hot. The Philippines is surrounded by water,the country can also have a high potential to produce water energy by putting these machines under water. There are many ways to produce energy but that will cost the country lots of money.

they are actually building a 40 MW windfarm facility in Ilocos Norte... the first in SEA...

well anyway, why can't they just demolish the bldg instead of wasting money in maintaining it?

yeah i heard about the windfarm! this is very good instead of fossil fuel power generator but there are a lot of wind mill here in the SF bay area and i read that these windmills kills birds so i am not sure how good will this do to the country. they should do solar! i know it's more expensive but it would be environmetally friendly among the others forms of energy =)

yes, i read about it @ Amras. it was financed by this...i forgot and ABN-AMRO.
we should be proud of it. tho i haven't figured out yet how solar energy works...haha...silly!

Nuclear plant still costs taxpayers $155,000 a day
Posted: 1:01 AM | Jul. 01, 2004

Agence France-Presse


NEARLY 30 years after work began on the Bataan nuclear power plant west of Manila, Filipino taxpayers are still paying 155,000 dollars a day in interest on a structure that has never produced one watt of power.

Thelmo Cunanan, chief executive of state-owned Philippine National Oil Co., said it had become the country's most outstanding white elephant.

"The fact that we are still paying interest on a project that is 30 years old and has not produced a watt of electricity should send at least one positive signal to the investment community," he told Agence France-Presse in a telephone interview.

The signal was, "If we enter an agreement, at least we pay our bills. There were times when I thought: Why should we? Why don't we simply turn our backs and walk away from it but that is not the way we Filipinos do business."

The Bataan nuclear power plant was a knee-jerk reaction by former dictator Ferdinand Marcos to the energy crisis of the early 1970s.

The oil embargo had put a heavy strain on the Philippine economy and Marcos saw nuclear power as the best way forward in terms of meeting the country's future power needs and lessening the nation's reliance on imported oil.

Construction began in 1976 and was completed in 1984 at a cost of 2.3 billion dollars.

The power station, 97 kilometers west of Manila, has been the center of controversy from the day construction began.

When Marcos was overthrown by the so-called People Power Revolution in early 1986 a team of international inspectors visited the site and declared it unsafe and inoperable as it was built near major earthquake fault lines and near the Pinatubo volcano, which at the time was dormant.

The first post-Marcos government of Corazon Aquino sealed the nuclear plant's fate for good when it banned the use of nuclear power and enshrined it into the constitution.

Debt repayment on the plant is the country's biggest single obligation.

Successive governments have looked at ways of converting the plant into an oil-, coal- or gas-fired power station.

Cunanan said a South Korean company recently expressed an interest in taking over the nuclear power station and developing it as a commercial operation. But a provision in the Constitution ruled it out.

Cunanan said it would be unfair to name the company but said the government has not ruled out converting the plant into a fossil fuel power station.

Some studies in the past have shown that converting the plant may be too expensive.

The plant itself has been maintained despite never having been commissioned.

A Westinghouse light water reactor, it was designed to produce 621 megawatts of electricity.

Much of the technology used in the plant was early 1970s but modified following the Three Mile Island accident in the United States in 1979.


copyright ©2004 INQ7money.net all rights reserved

I read an article in Reader's Digest that using windmills isn't really that efficient.

well anyway, why can't they just demolish the bldg instead of wasting money in maintaining it?

I don't think it's even being maintained. they're just paying off the bills... I wouldn't see the point of maintaining it knowing it's never gonna be needed anyway. they should maintain NAIA-3!! sheesh... haha...

yeah windmill is okay but not very environmentally friendly, especially for birds and they are not cheap but clean. on the otherhand solar is more expensive but very environmentally friendly. and with the amount of sunlight we get on phils, this is the way to go!

about the bataan nuclear plant, maybe the gov't should find another use for it. maybe as housing para the interest payment they are paying benefits the people atleast

sell it to the junkshop... and use the money to pay for the debts... :poke:

I read an article in Reader's Digest that using windmills isn't really that efficient.

well enough numbers of them they will be. true they do take up a lot of space to produce sufficient energy. tidal power wouldnt be a bad source of energy either. we have good waves in the Pacific coast, let's put them to even more use, besides tourism and surfing

yeah tidal wave would be something to consider, but maybe it wouldn't be environmental friendly for the marine life but it's a good idea

also solar power is a brilliant idea.

back to nuclear power, that building can be used for maybe tourism purposes, since it is inactive. that thing has to have some use, can't it?

From The Wit and Wisdom of Imelda Marcos

"Why should people be afraid that we use a few small pellets of uranium at the nuclear power plant in Bataan? Don't they know that we're surrounded by uranium? We have the world's fourth largest deposits of uranium. Yes, we're all radioactive -- must be the reason why we have so many faith healers!" -- on nuclear-generated power, February 1985

:)

i dont know if it sounds stupid or not...

Renell, the site is used as tourism spot. but not so famous. we've been there last March. di gaanong maganda.

jude
really i didnt know that phils have the 4th largest uranium deposit. hmm is that good or bad?

must be bad. remember James Bond movie? The World is not Enough, that one with Denise Richards? A very few grams of Uranium can be made to explode a big City. U know the E=mc2? Magnitude is energy is extremely high even for small mass, since its multiplied to the speed of light (squared).

YOu know we could SELL the Uranium to other countries, specially since oil and natural gas production/extraction is peaking. Those account for like whatm 45% of the power supply?

We could be the Iran of uranium. (Australia has the biggest reserves)

YOu know we could SELL the Uranium to other countries, specially since oil and natural gas production/extraction is peaking. Those account for like whatm 45% of the power supply?

We could be the Iran of uranium. (Australia has the biggest reserves)

In which in return could make tons of profits! And it could also help solve our debt problem. :)

hmmm... my dad (who was a Civil Engineer) did the structural design for the Bataan plant... it was his first huge project... the original designs are like compiled in his cabinet... and he's dissapointed it wasn't used, although he was paid, that plant had some sentimental values for him (drama no?!) IMO, that project was a big loss in philippine's progress... if it was opened it was supposed to power the whole luzon grid in at least 50 years. my dad said that it was really safe to open a nuclear plant here, filipinos where just scared of what happened in chernobyl...

but in a way, its much better unoperational, the philippine government sucks so much in maintaining such facilities...

there's one news ive seen on frontpage of Inq hard print today...that PGMA will revive the Bataan nuke plant. good news or bad?

It's revived and I think it's being pushed to be used. For me, I think it's good news because it would solve a bit of our power problem. And I think it wouldn't be a nuclear plant. It would be converted to a gas plant and converting it would cost the government a whopping 600 million dollars. :/ But GMA said in a speech that she will make these power plants operational by next year.

Great! Gas Plant? Does that mean a gas will be produced out of it or gas will run it? What gas? Biogas? We don't have much of it. We have an energy deficit at this year i heard.

The article said that it'll use natural gas from Malampaya, they'd also have to build a pipeline from Palawan to Bataan.

here is the article from www.inq7.net

Arroyo plan to convert Bataan plant to gas power draws fire
Beware of 'Marcos folly'


Updated 02:13am (Mla time) Aug 08, 2004
By Michael Lim Ubac, Fe Zamora
Inquirer News Service

Editor's Note: Published on page A1 of the August 8, 2004 issue of the Philippine Daily Inquirer


WHY RESURRECT a dictator's monument to folly?

Hardly off the ground, President Gloria Macapagal-Arroyo's plan to convert the mothballed Bataan Nuclear Power Plant (BNPP) into a gas-fired utility is already drawing fire from politicians, some businessmen and a militant left-wing leader.

To Senator Joker Arroyo, Malacañang's proposed solution to the power crisis looming over the country is nothing less than a cross-eyed idea.

"The President should not fall for the propaganda line being peddled by Napocor [National Power Corp.] and energy officials who have shouted 'eureka!' as if they have made a discovery," Arroyo told the Inquirer in a phone interview. "It's a rehash, Madame President."

Built in 1984 at a cost of more than $2 billion, the nuclear plant in Morong town in Bataan province was "a monument to [the late Ferdinand] Marcos' folly and corruption," Arroyo said.

"The civil works of the BNPP complex ...was designed to house and operate a nuclear power reactor, which is entirely different from power plants fired by various kinds of fuel," he stressed in a separate statement.

Arroyo recalled that the idea of converting the BNPP into a gas power plant had been proposed before but never took off.

"[It] had been deceptively dangled by energy and National Power Corp. officials to every President of the Philippines after Mr. Marcos whenever there was a power crisis."

Arroyo claimed refitting the BNPP was only a "diversionary move" by Energy Secretary Vince Perez "to distract the public from the problem."

"That is why Energy Secretary Perez, an investment banker, has very cleverly stated that the conversion will not take place until most of the generating plants have been disposed of," Arroyo said. "By that time, no one will remember the promise and the propaganda."

Arroyo also questioned the funding for such an ambitious undertaking.

"Where will we get the money? Borrow again? Fact is . . . it will turn out to be so prohibitive that it would be cheaper to construct a new one than to refit it," he said.

Reservations

Several businessmen welcomed Ms Arroyo's plan but only if the cost of converting the long-idle plant would be significantly lower than building a new plant that would use natural gas.

Philippine Chamber of Commerce and Industry executive vice president Donald Dee said this should have been done a long time ago because the government had spent heavily on the project.

Federation of Filipino Chinese Chamber of Commerce executive vice president Francis Chua said that, with the sharp rise in petroleum prices, it might be cost-effective to open the plant now and convert it into a gas-fired project.

Philippines Inc. chair Miguel Varela said that converting the BNPP would at least put to good use an idle plant that had not benefited anyone, so far, despite all the money that had been sunk into it.

Federation of Philippine Industries president Jesus Arranza said that, while the conversion of the Bataan plant was welcome, the government must make sure that converting it into a natural gas facility would be financially viable or else the government would only be throwing good money after bad.

Buy back Petron

Anakpawis Representative Crispin Beltran said yesterday that instead of reviving the BNPP, the government should buy back the oil refinery Petron to develop a national oil industry,

Beltran said Ms Arroyo's plan was a "circuitous, complicated and a roundabout way" of solving the power crisis.

"The government should funnel its resources towards buying back Petron and staking its claim over the oil resources that are being discovered and taken over by the US and other foreign corporations -- led drilling and mining consortia," Beltran said in a statement.

The proposal to nationalize Petron had also been raised by Senate President Franklin Drilon, but Malacañang rejected the proposal, saying the government was "comfortable" with its 40-percent stake in the oil firm.

Perez had said the government would keep its stake in Petron to have an "influence in the oil market."

The oil firm was privatized in the 1990s. Saudi Aramco acquired a 40-percent share, while the Philippine government maintained another 40 percent, and 20 percent was listed in the stock exchange.

Beltran said buying back Petron "was an easy and ready-made solution."

"All it takes is for the government to assert its political will," he said.

First things first

The conversion of the BNPP into a gas-fired project was part of an emergency energy independence agenda announced by Ms Arroyo on Thursday.

The agenda calls for turning inactive power facilities into gas-fuelled plants in 2005 to ensure additional power capacity for the next several years.

The winning bidder in the failed rural electrification program of the National Electrification Administration (NEA) urged the nation's leaders yesterday to first address the lack of infrastructure to deliver electricity to the countryside.

Nerwin Industries, the lowest complying bidder in the failed IPB-80 project, lamented in a statement that up to now NEA officials had refused to award a $12-million contract for the purchase of 60,637 wood poles and crossarms.

The foreign-funded project was supposed to provide electricity to the remotest areas in the countryside, but as in the case of other government biddings, it was foiled by political maneuvering and the interests of some government officials and legislators, said Nerwin.

The project was first bidded out in 2000, but although fully funded by the Japan Bank for International Cooperation, it did not push through.

Petition in court

Nerwin has sought recourse in the courts through a petition compelling NEA and energy officials to honor the contract. The trial on the merits of the case is being heard by a Manila court.

Nerwin said it could not even seek an audience with Ms Arroyo who, it said, had the power to order NEA officials to push through with the project.

Apples and oranges

As far as Bataan Representative Antonino Roman is concerned, the controversy over the BNPP was a case of apples and oranges.

Roman said that the BNPP and a gas-fired power generation facility were two completely different things, and the conversion of the Bataan plant was an idea that residents of Morong, Bataan, were "very cautious" about.

"(The BNPP) was designed as a nuclear plant. There has to be technical studies if the conversion is feasible," Roman told the Inquirer.

"They're like an apple and an orange. If it's economically feasible, then the national government will have to decide how much of the BNPP's facilities will be used," he said.

In the 1980s, Morong residents and cause-oriented groups launched a series of protests to force the Marcos government to mothball the project. It was during the term of former President Corazon Aquino that the demand was heeded.

Long-term solutions

Bataan Governor Enrique Garcia, on the other hand, said that converting the Bataan plant to a gas-fired plant would rescue the BNPP from deterioration.

But the long-term solution to the power crisis is to scrap the oil deregulation law, said Garcia.

The costs of BNPP

The Marcos government borrowed $300 million from a number of foreign banks in the late 1970s to bankroll the construction of the 620-MW BNPP.

Owing to interest charges, the total amount of the loans has ballooned to more than $2 billion.

Over the coming years, Filipino taxpayers will still have to endure the burden of some $80.4 million more in debt repayments, administration Senator Ralph Recto has estimated.

This year, the government is scheduled to remit $38.2 million in payments to two Japanese, one Swiss and two American banks, he said.

"If what we will pay for the useless plant's debt next year will be distributed among poor households as a power charge subsidy instead, we can provide P300 worth of electricity per month to 594,440 homes for a year," he said.

Built in 1984, the nuclear plant has not produced a single watt of electricity. With reports from Gil C. Cabacungan Jr., Tonette Orejas and Abigail L. Ho

jude
really i didnt know that phils have the 4th largest uranium deposit. hmm is that good or bad?


good. definitely good. but why hasn't the government exported it still? :bash:

sell them uranium! we dont need it.

yeah sell it...but only to our "allies":D

Yeah, it could solve our deficit and our "financial" problem... I just wish the government be more creative in thinking of ways for taxes, lol.

Would be great to finally use the white elephant known as the Bataan Nuclear Power Plant, preferablly converted to a gas plant. :D

The earthquake's epicenter was at Bataan.... hmmmm :)

That would be nice to beable to convert it into "renweable" power plant.

Every pinoy taxpayer still has to pay for that thing, even though it's not working...

yeah sell it...but only to our "allies"


of course, i'm sure our gov't isn't that evil, or at least i hope....

ive seen BNPP from montemar beach resort.

hey guys, try visiting this site..

powerswitch (http://powerswitch.org.ph)

Interesting, unfortunately it's obviously very slanted .

While renewables are a good thing, you really cant run an energy grid with it alone, specially with a country (archipelago) like ours.

The site really seems more like an endorsement for the ideas wwf philippines wants to propagate.

but isnt renewable energy a better and more cost effective alternative to the other power plants out there?

and i dont think that the site is advocating that the whole country switch to alternative power sources.. i think it would be better if certain pockets of islands used the renewable energy rather than relying on the older energy sources..

just MHO

Indeed you can't run a country with 80 million on renewables alone, especially with its cost. But we have quite a number of places in the country where solar, hydroelectric or coastal power can be used. The government should really start looking at it if they haven't (I think they have, at least to some extent), with from what I read was another blackout crisis looming.

The site posts a lot of articles on how the people are against coal power plant, how they don't need the plant anyway, and how they're pushing for the bill. The ratio of what kind of article tells you what they're advocacy is. That's why I' pretty sure it's slanted. When you have articles posted about foreigners decrying their own countyrmen sounds pretty dramatic.

While renewables are indeed good, power systems are actually quite complex in terms of mix and match. The Philippines is actually already one of the highest ratios of renewables in proportion to total energy generated. It also has very high costs, some of it is traceable to the fact that we have an archipelago and cant' run an effective grid. (too much use of very expensive underwater cables)

The ironic part is that it not only takes years to build a powerplant but that at this point a coal powerplant is actually the most inexpensive to operate, EVEN WITHIN THE CURRENT GUIDELINES OF THE KYOTO PROTOCOL. This is something many green advocacy groups seem to miss. While of course everyone prefers clean electricty preferably free, the realities are that the economics they've used are very questionable.

And even for renewables there are always boogey men, for geothermal, the tribes in Mt. Apo delayed it due to sulfur and traditional culture issues complaints (something about the mountain being sacred and even some bad science being expoused by the ngo's supporting them that it could cause earthquakes and thelike), for a dam it's even worse, every single dam here has been opposed by an ngo, ever heard of the IRN, and wind turbines in scotland were actually sued because of ...dig this... visual polution, i.e. they look ugly. My point being that even these technologies have their own problems.

I've no problem with renewables, we've been doing projects on these for a while. But I don't agree with one sided close minded perspective backed up by bad economics and science.

They should really go solar in many places. It's perfect with the type of country it is and with all of the water

My family and a friend of ours is actually considering a windmill-solar combo to power up a farm/garden we're developing on some land we have in Cavite. For small lots, renewable energy is surprisingly affordable.

I talked to this company that provides renewable energy systems, and their products are rated to last for 50 years and come with a 25 year guarantee. A small windmill that can provide 400w costs US$600, while the equivalent solar panel is even cheaper per watt. Larger windmills and panels cost more of course but also provide more power and efficiency. Solar + wind = a pretty acceptable power source in any weather.

It would cost almost as much to have the conventional power company install a power line to the area, and after that you'll still need to pay them regular fees for the power. With the windmills and solar panels, you only spend a large amount once for the installation, then the power itself is "free".

The country should develop and harness the power of the wind as a source of energy. There are already existing windfarms in the country and if I am not mistaken in Batanes they are also thinking of doing the same thing. These will definitely work especially along coastal areas.

Jon

point taken bustero..

this topic wasnt meant to advocate everything that the site i posted before, i just wanted to see what others think about renewable energy here in our country..

i believe that renewable energy could help alot of our countrymen in the farther reaches of the country.. as an alternative energy source..

They should really go solar in many places. It's perfect with the type of country it is and with all of the water

Wind too especially in the isolated islands in the country.

Wind, hydro power: Energy of the future

Posted 06:27am (Mla time) Jan 31, 2005
By Vincent Cabreza, Cristina Arzadon, Juliet Cataluña
Inquirer News Service

IT WILL take more time, but the future may well be in alternative sources of energy.

The provinces of the Cordillera Administrative Region, for instance, have the potential to generate up to 500 megawatts of "clean energy." The abundance of rivers in the area can power up a chain of mini-hydroelectric power plants for half of each year. And a wind resource analysis and mapping study conducted for the Philippines by the National Renewable Energy Laboratory has already identified several areas which could benefit from wind power installations.

Last August, the country's first commercial wind diesel hybrid farm, in Mahatao town in Batanes province, started operations. The P56-million facility is powered by three wind turbines (sourced from France) designed to last between 25 and 50 years.

Officials of the First Philippine Energy Corp., the project designer, said a similar hybrid power facility supplies the power requirements of a hospital and community facilities in Fiji.

At the launch, Energy Secretary Vince Perez said the wind diesel project could be used as a "living laboratory" for students and could be tapped as one of the province's tourist attractions. If President Gloria Macapagal-Arroyo's goal of putting up as much as 345 MW of wind power could be realized by the end of her term in 2010, he said, "the Philippines will be the largest producer of wind power in Asia and the leader [in that aspect] is Batanes."

Wind power is among the most cost-effective renewable technologies available today. According to an online website on wind power, more than 13,000 MW of wind power have already been installed worldwide.

A 25.5 MW wind power plant in Bangui town, Ilocos Norte province, developed by Northwind Power Development Corp., started operating recently. And the state-run Philippine National Oil Co. is developing a separate 42-MW wind farm in nearby Burgos town; it is expected to be operational by March.

"Interest in wind power is mounting as there is no showing that high oil prices will slip. In this oil-dependent generation where energy policies are being made to adapt to prevailing oil prices, the Philippine wind farm is our modest contribution to reducing our dependence on oil," said Ferdinand Dumlao, Northwind chair.

for complete story go to this link (http://news.inq7.net/regions/index.php?index=1&story_id=25996)

Thanks Stephen .

Actually if you are truly interested in this stuff. go to the DOE.gov.ph site , Very good place to start, another one is www.crest.org. These two sites malula ka na. For those interested in Solar,you can contact Bob Pucket of solar electric comp. along anapolis in greenhills.

This is a very interesting, diverse and important field. But requires even more learning because of the huge expanse of knowledge in the field.

Here's a little situationer on the Philippines with regards to energy.



Home > Country Analysis Briefs > Philippines Country Analysis Brief PDF version | PDB version
October 2004

Background | Oil | Natural Gas | Coal | Electricity | Profile | Links

Philippines
The Philippines is important to world energy markets because it is a growing consumer of energy, particularly electric power, and a potential market for foreign energy firms. It also may become a significant producer of natural gas.
Note: Information contained in this report is the best available as of October 2004 and can change.

BACKGROUND
Under the leadership of President Gloria Macapagal-Arroyo, the Philippines has undergone an economic transformation, deregulating its energy sector and offering new incentives for foreign investment. President Macapagal-Arroyo came into power when former President Joseph Estrada was forced to resign in 2001. In May 2004, President Arroyo was re-elected to another six-year term.

Real gross domestic product (GDP) grew by 4.8% in 2003. This increase exceeded expectations, with a surge in domestic consumer demand offsetting a decline in textile and electronics exports. High oil prices also contributed to a jump in remittances from Filipino workers in the Middle East. Real GDP growth for 2004 is projected at 4.9% as demand for the country's exports recovers.

The Philippines is one of the claimants, along with China, Taiwan, Malaysia, and Vietnam, to the Spratly Islands, located in the South China Sea. Potential oil and natural gas reserves surrounding the islands have sparked the interest of all the littoral states. In September 2004, the Chinese and Philippine governments reached an agreement to jointly pursue seismic survey work in the Spratlys, but without giving up their respective territorial claims.

OIL
The Philippines began 2001 producing an average of only 1,000 barrels per day (bbl/d) of crude oil. In 2002, however, crude oil production averaged nearly 24,000 bbl/d, and has been steady at 25,000 bbl/d since 2003. This increase was due primarily to the development of new deep-sea oil deposits beneath the natural gas-bearing structures in the Malampaya field. The increased production volume is still modest, however, in relation to the country's needs.

The Philippines consumed 338,000 bbl/d on average in 2003, with net oil imports of 312,000 bbl/d. This dependence on imported oil makes the Philippine economy vulnerable to sudden spikes in world oil prices. Oil consumption is relatively stable, despite the country's economic growth, due to reduced reliance on oil for electric power generation following development of the Malampaya natural gas deposit.

In October 2001, exploration underneath the Malampaya gas field revealed an estimated 85 million barrels of oil. Shell Philippines Exploration (SPEX) has committed about $2 billion to the upstream components of the combined oil/natural gas project, currently operating the joint venture with partners Texaco Philippines and the Philippines National Oil Company (PNOC). Production currently is around 25,000 bbl/d. In addition, six new offshore exploration projects have commenced in the Malampaya basin, led by Nido Petroleum, Philippines National Oil Company Exploration Corp., Trans-Asia Oil, Unocal Corp., and Philodril. In June 2004, however, Shell and ChevronTexaco announced that they had determined the amount of oil in the vicinity of Malampaya to be too small to develop economically, and relinquished their development rights. The Philippine government is seeking other firms which may be interested in developing the reserve, but no agreements have been concluded.

Unocal has begun exploratory drilling the the Sulu Sea offshore from the Philippines. Data from initial seismic surveys showed possible oil deposits of modest size, and Unocal plans to spend $14 million on exploration in the area.



Refining & Downstream
The Philippines' downstream oil industry is dominated by three companies: Petron; Pilipinas Shell (Royal Dutch/Shell's Philippine subsidiary); and Caltex (Philippines). Petron is the Philippines' largest oil refining and marketing company. The company was a wholly owned subsidiary of the state-owned PNOC until 1994. Currently, the Philippine government and Saudi Aramco each own 40% of the company, with the remaining 20% held by portfolio and institutional investors, making it the only publicly listed firm amongst the three oil majors. Petron's Limay, Bataan refinery has a crude processing capacity of 180,000 bbl/d. Petron's market share as of mid-2004 was around 40%. Caltex (Philippines), a subsidiary of Caltex, the ChevronTexaco subsidiary based in Singapore, operates a 86,500-bbl/d refinery, two import terminals, and more than 1,000 retail gasoline stations throughout the Philippines. Caltex announced in 2003, however, that it would be shutting down its refinery in late 2004 and replacing it with an oil import terminal. Current plans call for the refinery to process its last cargo of crude oil in October 2004, with the import terminal at the same site ready for operation by the beginning of 2005. Pilipinas Shell has a 153,000-bbl/d refinery, one of the largest foreign investments in the Philippines, and operates some 1,000 Shell gasoline stations. Overall, Philippine refineries run at around 80% of capacity, and there is not a great deal of demand for new refinery construction.

Oil market deregulation, beginning in 1998, continues to have a significant effect on the industry. Since deregulation started, 62 new firms, including TotalFinaElf, Flying V, SeaOil (Philippines), Eastern Petroleum, Trans-Asia Energy and Unioil Petroleum Philippines Inc., have invested heavily and built several hundred new retail stations. While the three original companies still dominate the market, these firms have captured a steadily growing share of the petroleum products market, rising from around 10% in 2000 to about 20% in mid-2004. These new entrants have organized the "New Players Petroleum Association of the Philippines" (NPPAP), and have been credited with putting significant downward pressure on retail fuel prices in the country. Currently, the Philippines enjoys the lowest fuel prices of any non oil-exporting Asian country. However, price swings associated with deregulation and higher world oil prices have angered many Filipinos. Despite recurring public calls for price controls, the government has remained committed to deregulation. In December 1999, the Supreme Court upheld the constitutionality of the country's deregulation program.

NATURAL GAS
Although the Philippines has 3.8 trillion cubic feet (Tcf) of proven natural gas reserves, the country had no significant natural gas production until late 2001. In recent years, the government has made expanding natural gas use a priority, particularly for electric power generation, in an effort to cut oil import expenses.

A major impetus for changes in the country's natural gas sector has been the Malampaya offshore field. Malampaya is the largest natural gas development project in Philippine history, and one of the largest-ever foreign investments in the country. Shell Philippines Exploration (SPEX, operator, with a 45% stake), Texaco (45%), and the PNOC (10%) have come together to form the $4.5 billion Malampaya Deepwater Gas-to-Power Project. Malampaya is located in the South China Sea, off the northern island of Palawan, and contains an estimated 2.6 Tcf of natural gas. A 312-mile (504-kilometer) pipeline links the field to three power plants in Batangas. The pipeline is among the longest deep-water pipelines in the world, with half of its length more than 600 feet deep. With completion of the sub-sea pipeline and conversion of the first of three power stations, (San Rita, operated by British Gas and Philippines 1st Gas Corp.), the Malampaya project was officially inaugurated on October 16, 2001. Natural gas from Malampaya eventually will fuel three power plants with a combined 2,700-megawatt (MW) capacity for the next twenty years and will displace 26 million barrels of fuel oil. The BG/Philippines 1st Gas Corporation partnership converted a second power plant at San Lorenzo to natural gas in 2003. The Philippine government currently is considering a sale of half of PNOC's stake to an outside investor, and has reportedly held talks with Korea Gas (Kogas).

A $100 million expansion pipeline from Batangas to Metro Manila ("Bat-Man") has been considered by numerous investors including PNOC, Shell, Brunei's Mashor Group, First Gas, and Sumitomo. This pipeline would supply gas to additional power plants as well as the industrial and commercial sectors. Negotiations on the financial aspects of the project are ongoing, and construction is expected to begin in 2005, with the pipeline commencing operation in 2007. Bids for the project were received in August 2004.

Exploration continues is other parts of the country, but no major discoveries have been reported. Three small natural gas fields were closed down in 2001. Fields in the Tukankuden and the Cotabato Basin were shut down due to security problems, while another field in Victoria, Tarlac, was closed because the natural gas discovered was too saturated with water for commercial production.

The Philippine government is developing a policy framework for the country's emerging natural gas industry that foresees the government's role as that of facilitator. Domestic development is to be encouraged, but competition from imported gas also is to be allowed. Gas supply to wholesale markets will have market-set prices, while prices for captive markets and small consumers will be regulated.

Liquefied natural gas (LNG) has begun to receive added attention as a potential source of natural gas supplies. PNOC has been considering the construction of an LNG regasification terminal in Bataan, which would serve the Manila area. A letter of intent has been signed for natural gas imports into the Philippines from BP's Tangguh LNG project in Indonesia.

A pilot program began in mid-2004 for the use of natural gas as a transportation fuel in the Manila area. Four bus companies are to have vehicles running on compressed natural gas by the end of 2004.

COAL
Development of new natural gas projects in the Philippines has come largely at the expense of the country's struggling coal industry. PNOC's coal mining subsidiary produced 1.9 million short tons of coal in 2002. While coal represents a declining share of the Philippines fuel mix overall, there are several small coal mines under development, mainly on the southern island of Mindanao.

The Philippines consumed 5.7 million short tons of coal in 2002, 3.8 million short tons of which were imported. Indonesia, China, and Australia are major exporters of coal to the Philippines.

World Trade Organization (WTO) regulations require that the Philippines lift import restrictions on coal. Since the 1970s, when the National Coal Authority was created, Philippine coal importers have been required to obtain a government certificate of compliance before importing coal, allowing the authorities to force importers to buy domestic coal each time they purchased coal from abroad. President Macapagal Arroyo has committed to honoring the international coal supply contracts approved by the previous government.

ELECTRICITY
Energy production in the Philippines is concentrated in the electricity sector. Geothermal power accounts for the country's largest share of indigenous energy production, followed by hydropower, natural gas, coal, and oil. The Philippine government has made shifting from reliance on imported oil a major goal, and is pushing the current boom in natural gas-fired electricity development.

The most significant event in the Philippine energy industry in recent years was the Electric Power Industry Reform Act (EPIRA) of 2001. After seven years of congressional debate and litigation, the Act came into force on June 26, 2001. The act has three main objectives: 1) to develop indigenous resources; 2) to cut the high cost of electric power in the Philippines; and 3) to encourage foreign investment. Passage of the Act set into motion the deregulation of the power industry and the breakup and eventual privatization of state-owned enterprises.

EPIRA required the state-owned utility National Power Corporation (Napocor) to break up its vertically integrated assets into smaller sub-sectors such as generation, transmission, distribution and supply in order to prepare for eventual privatization. The result will be a system in which privatized generators will sell directly to private distribution companies. Working with consultants from the law firm of Hunton and Williams (U.S.), the government has designated two new entities designed solely for the eventual privatization of state assets. These two concerns, the National Transmission Corporation (TransCo) and the Power Sector Assets and Liabilities Management (PSALM) Corporation, have assumed the state's high voltage transmission infrastructure, and power plants, respectively. The government also will sell off its share of Meralco, a vital distribution utility on the island of Luzon that serves Manila and the immediate surrounding area by buying power from various Independent Power Producers (IPPs).

Napocor will need to transfer its existing power purchase obligations to private distributors, and also to renegotiate high-priced contracts. The cost savings lie in the fact that private distributors will likely be unwilling to enter into agreements that are above market rates. There are other financial incentives for the government as well. Napocor's $23 billion in debt and $9 billion in power purchase agreements are unsustainable, and the government must already contribute $300 million per year to keep Napocor afloat.

In order to make the sale of Napocor more attractive to investors, the government has absorbed a significant amount of Napocor's debt. In addition, the $9 billion in power purchase agreements with IPPs also will be sold off. The transmission system has been transferred to an independent company, Transco, which is to be privatized. According to deregulation laws, no single potential buyer will be allowed to own more than 30% of the Philippines' generating assets. Privatization of Transco has been delayed, though, due to the fact that three bidding rounds in 2003 and 2004 resulted failed to yield an accceptable proposal. In October 2004, the Philippine government announced that it would make modifications to the process, based on bidding a non-negotiable set of terms and conditions, and make another attempt later this year.

Electricity demand in the Philippines is expected to grow by around 9% per year through the end of the decade, necessitating as much as 10,000 MW of new installed electric capacity. Current contracts will provide about half that amount, with the remainder expected to be filled once the market deregulates. Medium-term increases in power demand are to be satisfied largely by the three gas-fired plants (Ilijan, Santa Rita, and San Lorenzo) that will be linked to the Malampaya natural gas field. The Korea Electric Power Corporation (KEPCO) began commercial operation of the 1,200-MW Ilijan plant in June 2002. KEPCO will run the plant under a build-operate-transfer scheme for 20 years, after which ownership will revert to Napocor. Minority stakeholders in the plant are Southern Energy of the United States (20%) plus Mitsubishi (21%) and Kyushu Power (8%) of Japan. First Gas Power completed a 1,020-MW plant at Santa Rita in August 2000; the plant switched from fuel oil to natural gas in January 2002.

There are two new power projects in Luzon. The CE Casecnan Water and Energy Company (a subsidiary of California Energy International) is constructing a multipurpose irrigation and 150-MW hydroelectric facility. Also, the 350-MW San Roque multipurpose hydro project began commercial operation in May 2003.

Mirant is the Philippines' largest IPP, operating five power plants in the country. Mirant's coal-fired Sual plant began commercial operation in late 1999. The 1,218-MW plant is located about 130 miles north of Manila, and is the nation's largest and lowest-cost electricity producer. Napocor is the sole purchaser of power from Sual.

Several power-generating facilities also are under extensive rehabilitation. The 100-MW Binga hydroelectric plant has been under renovation since 1993 following damage from a 1990 earthquake. After years of delays, Binga resumed operation in July 2002. A larger project is the $470 million contract with Argentine firm IMPSA (Industrias Metalurgicas Pescarmona Sociedad Anonima ) to rehabilitate and operate the 750-MW Caliray-Botocan-Kalayaan (CBK) power complex in Laguna, south of Manila. The CBK complex is the grid regulator in Luzon, and as such is able to transmit power to other plants on the grid in the event of breakdowns. IMPSA, in conjunction with new partner Edison Mission Energy of the United States, was able to get a performance undertaking guarantee despite Napocor's and some government officials' objections, facilitating long-delayed financing of the project.

The Philippines, due to its geography, has problems linking all of its larger islands together into one grid and ensuring availability of electric power in rural areas. The government has set a target date of 2006 for full electrification, and also is taking steps to link together the country's three major power grids (Luzon, Visayas, and Mindanao). Where it is not economical to link small islands' grids into the national grid, separate local systems are being established around small generating plants.

Renewables
The Philippines is the world's second largest producer of geothermal power, with an available capacity of 1,909 MW. The government would like to add roughly another 1,200 MW, which would exceed current U.S. geothermal capacity. Geothermal power currently makes up around 16% of the Philippines' installed power generation capacity, most of which has been developed by the PNOC - Energy Development Corporation (PNOC-EDC). Privatization of PNOC-EDC is planned, though as with other generation assets, the process has progressed much slower than originally planned. Kyushu Electric company is in a joint venture with PNOC-EDC to develop a 40-MW geothermal plant in Sorsogon, Albay province, and Marubeni of Japan has expressed its intent to build the 100-MW Cabalian geothermal plant in Leyte. California Energy's Philippine unit is working with PNOC to develop three new geothermal power plants in Leyte, producing a total of 540 MW of electricity. Plans are underway to develop nine new facilities in Luzon, ranging from 20 MW to 120 MW, that will eventually bring a total of 440 MW of geothermal energy to the grid. By 2005, the new 40-MW Mambucal and 40-MW Rangas power stations in Dauan, Negros Oriental are expected to come online. Financing for the projects was secured from the Development Bank of the Philippines (DBP) in June 2003.

Besides geothermal, the Philippines also is exploring the use of other renewables for electricity generation, particularly in the country's unelectrified villages. In March 2001, the Philippine and Spanish governments, in conjunction with BP, agreed to a $48 million contract to bring solar power to 150 villages. BP and the government of Australia also have partnered with the Philippines to supply solar power to rural villages, bringing 1,145 solar-powered systems to 52 new municipalities.

The Philippines appears to have a strong potential for wind generation. The United States Department of Energy wind mapping survey has estimated that wind resources in the Philippines have a power generation potential of as much as 70,000 MW, seven times the country's current power demand. The 40-MW, PNOC-EDC, Northern Luzon project in Ilocos Norte began operation in late 2002. A contract for a second, 40-MW phase of the project was signed with Aboitiz Power in March 2003.

Sources for this report include: AFX News Limited; Asia Pulse; Business Wire; Business World; CIA World Factbook; Dow Jones News Wire service; Economist Intelligence Unit; Electric Utility Week; Financial Times; Global Insight Asia Economic Outlook; Oil and Gas Journal; Manila Standard; Philippine Daily Inquirer; Platts International Coal Report; Project Finance; U.S. Energy Information Administration; World Gas Intelligence.

COUNTRY OVERVIEW
President: Gloria Macapagal-Arroyo (sworn in January 20, 2001 after resignation of Joseph Estrada; next election May 2004)
Independence: July 4, 1946 (from United States)
Population (2004E): 86.2 million
Location/Size: Southeast Asia/115,830 sq. mi. (slightly larger than Arizona)
Major Cities: Manila (capital), Quezon City, Cebu, Davao
Languages: Pilipino (official; based on Tagalog), English (official)
Ethnic Groups: Christian Malay (91.5%), Muslim Malay (4%), Chinese (1.5%), other (3%)
Religions: Roman Catholic (83%), Protestant (9%), Muslim (5%), Buddhist and other (3%)

ECONOMIC OVERVIEW
Finance Secretary: Jose Camacho
Currency: Philippine peso
Market Exchange Rate (9/13/04): $1 = 56.33 pesos
Gross Domestic Product (GDP, 2003E): $80.6 billion
Real GDP Growth Rate (2003E): 4.8% (2004F): 5.3%
Inflation Rate (consumer prices, 2003E): 3.0% (2004F) 5.0%
Current Account Balance (2003E): $3.3 billion
Major Trading Partners: United States, Japan, EU, Singapore, Hong Kong
Merchandise Exports (2003E): $35.9 billion
Merchandise Imports (2003E): $37.4 billion
Major Export Products: Electronic equipment, machinery, garments, coconut oil
Major Import Products: Machinery and equipment, fuel products, textile yarns, chemicals
Total External Debt (2003E): $57.1 billion

ENERGY OVERVIEW
Secretary of Energy: Vicente Perez
Proven Oil Reserves (1/1/04E): 152 million barrels
Oil Production (2003E): 26,000 bbl/d, of which 25,000 bbl/d was crude oil
Oil Consumption (2003E): 338,000 bbl/d
Net Oil Imports (2003E): 312,000 bbl/d
Crude Oil Refining Capacity (1/01/04E): 333,000 bbl/d
Natural Gas Reserves (1/1/04E): 3.8 trillion cubic feet
Natural Gas Production and Consumption: (2002E): 70.6 billion cubic feet
Recoverable Coal Reserves (2002E): 366 million short tons
Coal Production (2002E): 1.9 million short tons
Coal Consumption (2002E): 5.7 million short tons
Electric Generation Capacity (1/1/02E): 13.4 gigawatts (GW)
Electricity Generation (2002E): 45.6 billion kilowatthours (bkwh) (61.9% thermal, 15.8% hydro, and 22.2% geothermal)
Electricity Consumption (2002E): 42.4 bkwh

ENVIRONMENTAL OVERVIEW
Secretary of Environment & Natural Resources: Heherson Alvarez
Total Energy Consumption (2002E): 1.18 quadrillion Btu* (0.3% of world total energy consumption)
Energy-Related Carbon Dioxide Emissions (2002E): 64.5 million metric tons of carbon dioxide (0.3% of world total energy-related carbon dioxide emissions) (includes natural gas flaring)
Per Capita Energy Consumption (2002E): 15.0 million Btu (vs. U.S. value of 339.1 million Btu)
Per Capita Carbon Dioxide Emissions (2002E): 0.82 metric tons of carbon dioxide (vs. U.S. value of 19.97 metric tons of carbon dioxide)
Energy Intensity (2002E): 3,868 Btu/$1995 -PPP (vs U.S. value of 9,344 Btu/$1995 -PPP)**
Carbon Dioxide Intensity (2002E): 0.21 metric tons of carbon dioxide/thousand $1995 -PPP (vs U.S. value of 0.55 metric tons/thousand $1995 -PPP)**
Fuel Share of Energy Consumption (2002E): Oil (59.3%), Coal (10.2%), Natural Gas (5.9%)
Fuel Share of Carbon Emissions (2002E): Oil (76.6%), Coal (17.0%), Natural Gas (6.4%)
Renewable Energy Consumption (2002E): 0.28 quadrillion Btu*
Status in Climate Change Negotiations: Non-Annex I country under the United Nations Framework Convention on Climate Change (ratified August 2nd, 1994). Signatory to the Kyoto Protocol (signed April 15th, 1998).
Major Environmental Issues: Uncontrolled deforestation in watershed areas; soil erosion; air and water pollution in Manila; increasing pollution of coastal mangrove swamps which are important fish breeding grounds.
Major International Environmental Agreements: A party to Conventions on Biodiversity, Climate Change, Endangered Species, Hazardous Wastes, Law of the Sea, Marine Dumping, Nuclear Test Ban, Ozone Layer Protection, Tropical Timber 83, Tropical Timber 94, Wetlands and Whaling. Has signed, but not ratified, Desertification.

* The total energy consumption statistic includes petroleum, dry natural gas, coal, net hydro, nuclear, geothermal, solar and wind electric power. The renewable energy consumption statistic is based on EIA data and includes geothermal, solar, wind, wood and waste electric power consumption.. Sectoral shares of energy consumption and carbon emissions are also based on IEA data.
**GDP based on OECD figures for Purchasing Power Parity (PPP)

OIL AND GAS INDUSTRIES
Organization: The Philippine National Oil Company (PNOC) is the country's state-owned energy company responsible for oil and development of local energy resources. Petron, privatized in 1994, is considered to be the country's largest oil refining company, with Shell and Caltex also significant. National Power Corporation (NPC) is the state-owned electric company.
Major Foreign Energy Company Involvement: Caltex, Royal-Dutch Shell, Petroleum Authority of Thailand, TotalFinaElf
Major Natural Gas Fields: Malampaya-Camago
Major Oil Refineries (capacity - bbl/d): Petron -- Limay, Bataan (180,000 bbl/d); Pilipinas Shell -- Tabangao (153,000) bbl/d)


--------------------------------------------------------------------------------
LINKS
For more information from EIA on the Philippines, please see:
EIA - Country Information on the Philippines
Philippines - U.S. Energy Data Exchange Home Page

Links to other U.S. and state government sites:
CIA World Factbook - Philippines
U.S. Department of Energy's Office of Fossil Energy's International section - Philippines
U.S. State Department's Consular Information Sheet - Philippines
U.S. State Department's Country Commercial Guide - Philippines
U.S. State Department Background Notes - Philippines
Library of Congress Country Study - Philippines
State of Hawaii Country Profiles
U.S. Embassy in the Philippines

The following links are provided as a service to our customers and should not be construed as advocating or reflecting any position of the Energy Information Administration (EIA) or the United States Government. EIA does not guarantee the content or accuracy of linked sites.

Philippine National Oil Company (PNOC)
Petron
Pilipinas Shell
Caltex (Philippines)
Pancontinental Oil & Gas
Philippine Department of Energy
Philippine Department of Environment and Natural Resources
Philippine Department of Trade and Industry
Philippine National Economic Development Authority
World Bank - Philippines
Philippine Mission to the United Nations


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thanks for the heads up bustero! :D

THE PHILIPPINE POWER INDUSTRY

The Philippine power industry is divided into three major sectors: generation, transmission and distribution.

Under the present power industry structure, NPC generates its own electricity and buys electricity from IPPs.

Generation used to be a monopoly of the NPC until the issuance of Executive Order No. 215, which opened the generation sector to private investors. At present, a number of IPPs generate and sell electricity to NPC and other customers.

NPC transmits electricity to distributors and large industrial customers via high-voltage wires. NPC is also responsible for constructing the transmission grid highway interconnecting the main islands nationwide.

Distribution of electricity at its usable voltage to end-consumer is performed by investor-owned electric utilities, notably the Manila Electric Company (Meralco), a few local government-owned utilities and numerous electric cooperatives which sell to households as well as commercial and industrial enterprises located within their franchise areas at retail rates regulated by the Energy Regulatory Board (ERB).

The Department of Energy (DOE) sets policy directions for the energy industry, while the National Electrification Administration (NEA) provides financial and technical assistance to electric cooperatives.

Two major reforms are embodied in RA 9136, namely, the restructuring of the electricity supply industry and the privatization of the National Power Corporation (NPC). The restructuring of the electricity industry calls for the separation of the different components of the power sector namely, generation, transmission, distribution and supply. On the other hand, the privatization of the National Power Corporation (NPC) involves the sale of the state-owned power firm’s generation and transmission assets (e.g., power plants and transmission facilities) to private investors. These two reforms are aimed at encouraging greater competition and at attracting more private-sector investments in the power industry. A more competitive power industry will in turn result in lower power rates and a more efficient delivery of electricity supply to end-users.

The National Transmission Corporation (TransCo) is a government - owned and controlled corporation that has assumed the electrical transmission functions of the
National Power Corporation (NPC) in the major Philippine grids.

Created by virtue of the Republic Act 9136 or the Electric Power Industry Reform Act of 2001, TransCo is responsible for the planning, construction, and centralized operation and maintenance of high voltage transmission facilities nationwide including those of grid interconnections as well as the provision of ancillary services.

TOP THREE POWER DISTRIBUTOR IN THE PHILS

1. The Manila Electric Company (Meralco)

http://img.photobucket.com/albums/v644/sleepwalker_uno/meralco.jpg

The Manila Electric Company (Meralco), the Philippines’ largest distributor of electricity, is also the oldest electric utility celebrating its 101st year of service in 2004.

In its centennial year in 2003, Meralco sold 23.8 billion kilowatthours of electricity to a franchise covering 9,337 square kilometers, where around 20 million people or about a quarter of the total Philippine population reside. It served 4.1 million customers in 23 cities and 88 municipalities.

Business establishments in the franchise produced almost 50 percent of the country’s gross domestic product (GDP), with around 31 percent produced in Metro Manila alone.

The company has 30 branch offices in the central, north and south areas of the franchise to attend to the needs of customers.

Aside from its core business of electric distribution, Meralco through strategic alliances and partnerships, is involved in industrial construction and engineering; business process reengineering, power generation, information technology consultancy, e-business, energy related solutions, real estate development, energy management, customer focused training solutions, shareholder value creation and corporate social responsibility.


2. Visayan Electric Company (Veco)

Visayan Electric Company (VECO) is the second largest Philippine power distribution utility serving the second largest city in the Philippines. The Franchise area of VECO covers Metropolitan Cebu (including municipalities of consolacion, Liloan, Talisay, Minglanilla, Naga and San Fernando) In 2001, VECO had already 245,103 customers, with the peak demand of 243 megawatts.

The state-run National Power Corporation generates the electric requirements of the province, distributing it to three major electric firms: Visayan Electric Company (VECO), Mactan Electric Company (MECO), and the Cebu Electric Cooperative (Cebeco).


3. Davao Light & Power Company (DavaoLight)


http://img.photobucket.com/albums/v644/sleepwalker_uno/davaolight.jpg

Davao Light & Power Company, Inc. (DLPC) is the flagship company among eight subsidiaries under the Aboitiz Power Corporation (APC), a wholly owned subsidiary of the Aboitiz Group’s investment arm Aboitiz Equity Ventures, Inc. (AEV).

Today, it is the third largest privately owned electric utility in the Philippines and is considered as one of the country’s top 300 corporations.

In the year 2003, DLPC sold 1.133 billion kilowatt-hours (kWhrs) with a peak demand of 210 megawatts (MW). Its service efficiency enhanced as the company served a total customer base of 215,680 even though reducing its manpower complement to 331.

One of the Philippines’ most efficiently run power companies, DLPC consistently exceeds the required performance set by regulators of distribution utilities. Its systems losses are one of the lowest in the industry with an established pattern of improvement. In the same period, line losses were at 9.04%, almost a half percentage point below the government cap set for private electric utilities.

DLPC maintains a standby diesel plant with a capacity of 42 MW to stabilize voltage as well as augment the power supply of the National Power Corporation (NPC). This power plant has the capability of supplying close to 22 percent of the demand. Having such makes the utility one of the few power companies in the Philippines with this capability.

The company operates for the whole franchise a fully functional automated mapping and facilities management (AM/FM) system, the first to be used in the Philippines. Its elite engineers also utilize a Supervisory Control and Data Acquisition System (SCADA), a facility that allows the monitoring of DLPC’s distribution assets via remote control.

High-end computers and related devices are being used to speed up meter reading, streamline billing, provide instant response to customer inquiries, generate management information and analyze line losses.

In 2000, the company signed a two-year joint cooperation agreement with US-based power firm
American Electric Power (AEP) for a human resources development exchange program. The partnership provides DLPC’s personnel the opportunity to be exposed to best practices of one of the largest electric utilities in the United States.

Special attention has been devoted to improving service standards. Innovative re-engineering efforts have cut down service cycle times. Outsourcing of services and reallocating manpower and other resources has allowed DLPC to improve productivity while keeping costs relatively stable despite inflation. Current efforts focus on teamwork, service excellence, and zero waste to prepare the company for a deregulated and competitive environment.

Now and in the future, DLPC is committed to deliver a reliable and efficient electric utility service at reasonable rates with service statistics approaching world-class standards

Im Confused. Shouldn't NAPOCOR be number 2? or are you talking about the largest PRIVATE power companies?

ah ok. lets clarify things.

power industry is divided into three:

1. generation-source of electricity, power plants
Napocor belong to this group which is "generation" along with other companies that were granted IPP contracts. they are the source of electricity. they provide electricity for Meralco, Veco, DavaoLight. Napocor's assets are due for privatization.

2. transmission-this links the source of electricity (generation) to distributor (or links #1 to #3). Napocor used to be performing this function. This function is taken away from Napocor to newly created Transco. They maintain sub-stations & power lines that transmit electricity from source to distributor.

3. distribution-these are utilities that distributes electricity to each household, commercial establishments. Top three distributors are Meralco, Veco & DavaoLight.

Ahh thanks for the clarification! I thought Napocor was a distributor.. hehe my bad. anyways. Speaking of power. Is there any plans for Powerlines in MM and Other Metros to be put underground? they are such a eyesore and take away the beauty of lots of cities.

wow thanks for this thread, it clarified things up. i've been so confused with these napocor, transco, IPPs, stuff.

by the way, it's out of topic, but my bestfriend works as an accountant for Meralco :D

hmm... it will get confusing should Napocor be privatised wouldn't it? What if say Meralco gets hold of generation, wouldn't that cause problems with it's visayan and davaeno counterparts?

I always thought Meralco and Napocor were competition or something:D

Is there any plans for Powerlines in MM and Other Metros to be put underground? they are such a eyesore and take away the beauty of lots of cities.

Almost all cities have them. You know it will be a waste of cash if we put ALL lines underground. I don't mind getting rid of the ones around the condotels in Makati ave. though.

Loans to develop renewable energy sources urged

Posted 03:22am (Mla time) Mar 07, 2005
By Blanche Rivera
Inquirer News Service


Editor's Note: Published on page A20 of the Mar. 7, 2005 issue of the Philippine Daily Inquirer


THE HEAD of the international environmental group Greenpeace yesterday urged the World Bank and Asian Development Bank, two of the world's biggest financial institutions, to channel their loans toward the development of renewable energy sources.

Greenpeace International director Gerd Leipold said the World Bank spent more for non-renewable fossil fuels than on alternative energy even as it made pronouncements against the use of fossil fuels.

The World Bank lends $17 for fossil fuel use for every $1 that it lends for renewable sources of energy, according to Greenpeace.

"It's not enough that the World Bank and ADB say something against climate change. They need to change their lending practices as well," Leipold said at a forum sponsored by the Foreign Correspondents Association of the Philippines.

Leipold warned that Asia, the biggest cause of global climate change, was expected to be hit hard by changes in the climate.

He identified China, India, Japan and South Korea as among the top 10 emitters of greenhouse gases in the world. Of the four, only Japan has signed the Kyoto Protocol.

Greenpeace also said the Philippine government should do more to promote renewable energy sources as Asia's initiatives were crucial in fighting global climate change.

While the Philippines plays "a very positive role" in promoting the Kyoto Protocol, the country still has a lot to do to promote compliance with the agreement, according to Leipold.

"It's always easier to make big statements internationally. Domestically, the Philippines can do more and should do much more," he said.

Red Constantino, Greenpeace campaign director for energy in Southeast Asia, cited the country's wind potential for 70,000 megawatts of energy, which remains untapped due to the government's lack of policy initiatives on renewable energy sources.

Constantino said that a wind potential of only 40 MW was being developed for use in Ilocos Norte province, identified as one of the regions with highest wind potential.

"It's ridiculous compared with the 70,000 MW-wind potential of the country. But we won't be able to reach that unless the government sends signals to investors that we are for these renewable sources of energy," he said.

Other provinces like Negros, Romblon and Guimaras hold promise as wind-powered energy sources, according to Costantino.

Negros and Ilocos can match the wind potential of turbines in Germany and Denmark, leaders in wind-generated power in the world, he said.

The government should create an investment climate that welcomes private companies using or investing in alternative energy sources instead of just opening up to fossil fuel, according to Constantino.

"The Philippines should harness its tremendous wind potential. Not only will this reduce the country's dependence on fossil fuels, it would also mean massive investments and jobs for the poor and the protection of the environment," Leipold said.

hmm... it will get confusing should Napocor be privatised wouldn't it? What if say Meralco gets hold of generation, wouldn't that cause problems with it's visayan and davaeno counterparts?

I always thought Meralco and Napocor were competition or something:D


PSALM CORP.

The Power Sector Assets & Liabilities Management (PSALM) Corporation, was created by virtue of R. A. 9136, otherwise known as the Electric Power Industry Reform Act or "EPIRA". This law was enacted last June 26, 2001 and tasked PSALM to take ownership of all existing generation assets, liabilities, Independent Power Producers (IPP) contracts, real estate and all other disposable assets of the National Power Corporation (NPC), including the assumption of all its outstanding obligations arising from loans, issuances of bonds, securities and other instruments of indebtedness.


In the implementation of the foregiong mandate, PSALM Corp., shall manage the orderly sale, disposition, and privatization of NPC generation assets, real estate and other disposable assets, and IPP contracts with the objective of liquidating all NPC financial obligations and stranded contract costs in an optimal manner.

PSALM Corp. maintains its principal base of operations at the 2nd floor of the SGV Bldg. II, Ayala Avenue, Makati City.

R. A. 9136 gave PSALM a corporate life of twenty five (25) years within which to complete its mandate. Beyond such time, all assets held by it, all money and properties belonging to it, and all liabilities outstanding upon the expiration of its term of existence shall revert to and be assumed by the National Government. Upon Expiration of the term of PSALM, the administration of the Special Trust Fund shall be transferred to the DOF or any of the DOF attached agencies as designeted by the DOF Secretary.

The majority of the country's power is generated through what type of plant? Coal, hydro? if only there was a graph of some sort:D

The govt. should now focus on geothermal, wind and solar energy to provide the power for future needs whilst minimizing negative externalities (eg. pollution). I think wave energy is also ideal for an archipelago like our country.

As of 2003:

Oil-based 24%
Hydro 19%
Geothermal 13%
Coal 26%
Natural Gas 18%

Peak Demand

Luzon 6,039 MW
Visayas 936 MW
Mindanao 995 MW
Total 7,970 MW

More here:

Indicative Power Devt Plan (http://www.doe.gov.ph/pcr/Pdf/pdf%20Philippine%20power%20development%20plan.pdf)

some of RP's power plants

http://img.photobucket.com/albums/v644/sleepwalker_uno/nuclear1.jpg

http://img.photobucket.com/albums/v644/sleepwalker_uno/masinloc1.jpg

http://img.photobucket.com/albums/v644/sleepwalker_uno/asantarita1.jpg
http://img.photobucket.com/albums/v644/sleepwalker_uno/asantarita2.gif

Is the new dam in Kaliraya, Laguna completed? I remember going there a few years ago.

hmmm...so coal is still the major power source for the country. I hope we go to cleaner energy sources.

CBK is up and running.

Coal was put in to lower the cost of the country's energy already one of asia's highest.

If people want to use alternatives be prepared to pay higher.

There's this Geothermal Plant in Brgy. Bitin, Bay, Laguna. Residents living there pays nothing for their electricity. :)


by the way, it's out of topic, but my bestfriend works as an accountant for Meralco :D
One of my cousins is also an Accountant in Meralco...hindi kaya cya bestfriend mo? :D

One of my cousins is also an Accountant in Meralco...hindi kaya cya bestfriend mo? :D

he's originally from Tabuk, Kalinga. kung yung cousin mo taga-Kalinga, baka siya na nga hahaha! anyway, his name is fernando :)

^ errrr. hindi cya ang pinsan ko. babae kc cousin ko.

btw, nice to see that pic of Power Plant in Sta.Rita. I lived near the place when I was freshmen in college. :)

any pics of Calaca-Napocor plant?

http://img.photobucket.com/albums/v644/sleepwalker_uno/calaca.jpg

http://img.photobucket.com/albums/v644/sleepwalker_uno/asset_gen_Calaca.gif

Batangas I Coal-Fired Thermal Power Plant
Installed Capacity : 300 MW (1 x 300)
Commissioning Year : 1984
Location : Calaca, Batangas

Batangas II Coal-Fired Thermal Power Plant
Installed Capacity : 300 MW (1 x 300)
Commissioning Year : 1995
Location : Calaca, Batangas

Remaining Life (yrs) (as of Dec 31, 2001) : 23-34

hehe. salamat!

hmm... Coal-Fire Thermal Power Plant, sounds like a hybrid power plant, like those cars with petrol and electricity power.

Btw, is that Bataan Nuclear Plant just standing there for photos or actually being used, but for another power source?

It's just standing there.

Since you guys are so interestedin this thing. (mods you should combine this with stephen renewable energy sity so more meat), here's a little something on what's happening to our energy scene.
DoE awards contract for oil, gas exploration in Palawan
Posted: 2:57 PM | Mar. 11, 2005


XFN-Asia

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THE DEPARTMENT of Energy said it has awarded to a consortium composed of Australia's Ottoman Energy Ltd., AustralAsian Energy Limited and RGA Resources Inc. a service contract for oil and gas exploration in northwest Palawan.

The consortium is expected to invest 10.2 million dollars during the seven-year exploration period.

Service Contract No. 50, signed between the energy department and the consortium, is the sixth to be awarded since the Supreme Court's December ruling allowing foreign businesses to invest in the mining and petroleum exploration sectors.

It covers 172,000 hectares in northwest Palawan basin and hosts what are called the South Calauit oil fields, which contain existing proven oil reserves.

A production test conducted in 1997 showed water-free production of 6,500 barrels of oil per day, but the complete exploration and production of the field was later stopped due to the presence of water, the energy department said.

The energy department said Australia's Ottoman has exploration activities in the Thrace Basin of Turkey, while AustralAsian is a wholly owned unit of Middle East Petroleum Services Ltd.

RGA Resources is a local firm that was organized to provide technical and management services to the consortium.

Ahh thanks for the clarification! I thought Napocor was a distributor.. hehe my bad. anyways. Speaking of power. Is there any plans for Powerlines in MM and Other Metros to be put underground? they are such a eyesore and take away the beauty of lots of cities.

our power lines make our cities uglier. its really up to distribution companies like meralco & local govt units to have it underground. hmmp... costly. i dont think it'll happen soon.

indeed it won't. and yes it is ugly, but give me a city which does not have any overhead powerlines around the size of Manila. Overhead lines does not mean outright ugliness, it can be tidy, without posters or whatever crap hanging above it, and it's not like 'lawlaw'

I guess this goes in here...

First Gas plans $700-M integrated LNG project
By Antonio F. Katigbak | The Philippine Star | 03/13/2005

HOUSTON, Texas – The Lopez-owned First Gas Holdings Corp. (FGHC), together with its joint venture partner British Gas (BG), unveiled plans to pursue their expansion project in the Philippines which calls for the establishment of a regasification facility for liquified natural gas (LNG) and an adjoining 500-megawatt (MW) power plant at a suitable location in the Batangas Bay area.

Company officials placed the cost of the project at about $700 million, with $200 million to be spent for the LNG regasification plant and about $500 million for building a new 500-MW power plant. The project is to be funded through a combination of debt, bond offers and internally-generated funds.

Anthony Barker, BG Philippines country manager, told a group of visiting Filipino journalists here that the joint venture group (FGHC and BG) had already completed the feasibility study last year and is now looking for an ideal site for the regasification plant and the power plant to serve as its ready market. The main focus of the study is the regasification facilities.

He said the LNG project wil initially supplement the Malampaya natural gas supply for the company’s 1,000-MW Sta. Rita and 500-MW San Lorenzo power plant in Batangas. It will eventually end up being the main supplier when the contracts of First Gas with Shell expire after 20 years and the Malampaya reserves start to run out.

Barker also said they have already agreed to form a new joint venture entity – First Natural Gas Power Co. (First NPC) – to undertake a 500-MW new power plant to be christened San Gabriel.

However, he said the joint venture is still awaiting further positive developments in the power industry, such as government’s privatization of Natural Power Corp.’s assets, particularly those that can be converted into gas-fired plants like the Sucat and Limay plants. This will serve as an option for an anchor load needed to spur the LNG project.

Barker admitted that other groups are also interested in bringing LNG into the Philippins which he said is good for the country. However, he pointed out that "we feel we are better positioned to do this." He cited BG’s "first mover advantage" in the US market which he said is also the joint venture’s edge in the Philippines, having already gained the experience and expertise in the use of natural gas for power generation.

Barker said that assuming that the Philippines can still attract substantial investments in the power industry, with rules, hopefully, not being changed in the middle of the game, the LNG facility is expected to be on stream by 2012.
-----------------------------------------------------------------------------------
$700-M is huge...! what is regasification supposed to mean?

indeed it won't. and yes it is ugly, but give me a city which does not have any overhead powerlines around the size of Manila. Overhead lines does not mean outright ugliness, it can be tidy, without posters or whatever crap hanging above it, and it's not like 'lawlaw'

yeah... I agree.

a sub-station (under transmission)

http://img.photobucket.com/albums/v644/sleepwalker_uno/electricity/Picture053.jpg

http://img.photobucket.com/albums/v644/sleepwalker_uno/electricity/Picture064.jpg

http://img.photobucket.com/albums/v644/sleepwalker_uno/electricity/Picture072.jpg

our power lines make our cities uglier. its really up to distribution companies like meralco & local govt units to have it underground. hmmp... costly. i dont think it'll happen soon.

Actually powerlines of electric companies are not the only culprit...actually like in the case of Legazpi city...it used to be nice and ok, but during the telcom deregulation, in-came digitel and bayantel plu our local company matelco which built their own tel. posts and tons of individual wiring drops for homes and businesses...then it became ugly...just take a look at this...

http://img.photobucket.com/albums/v653/olineil/Bild12.jpg
those are telephone wires...dang ugly!

Wind power sites to be offered to investors

By Paul Anthony A. Isla, Reporter

THE government will offer 18 wind sites nationwide to investors during the second wind power contracting round this year.

Energy Secretary Raphael Lotilla said on Friday that 10 of the sites are in Luzon, 7 in the Vizayas, and 1 in Mindanao.

“Our advantage is that these wind farms are located on land. Whereas in other countries, the wind farms are located at sea, which makes it much more expensive to maintain and build. It is a great advantage for an archipelagic country like ours, that more developments of wind power is going to take place,” Lotilla told reporters on the occasion of the inauguration of the Philippines’ first wind farm, a 24.75-megawatt facility in Bagui Bay, Ilocos Norte.

He said several financial assistance windows are available to potential investors in wind-power projects.
The Development Bank of the Philippines, for one, has its Wind Energy Financing Program.

The United Nations Development Programme-Global Environment Facility also expressed willingness to offer aid in project preparation and in securing loan guarantees for wind power projects.

Early this year, the energy department launched the first contracting round, offering 16 wind sites for investors.

Lotilla said the launch of the Ilocos wind farm, owned by NorthWind Power Development Corp., “establishes a high point in the government’s search for renewable sources of power.”

With the launch of NorthWind’s facility, the Philippines is moving closer to achieving energy independence, he said.

“Harnessing the strong winds coming from the north to northeast of the country, NorthWind’s wind farm is the largest wind-power project in Southeast Asia, comprising of 15 towers with an installed capacity of 1.65 MW wind turbine generator per tower,” he added.
The project is the first of its kind to be connected to the main power grid.

The government’s energy independence agenda aims to achieve 60 percent energy self-sufficiency in 2010 by increasing exploration of indigenous oil and gas, and developing renewable energy potential such as biomass, solar, wind and ocean resources.

The wind farm will provide reliable and sufficient power supply to the customers of the Ilocos Norte Electric Cooperative and boost tourism in the area, Lotilla said.

RP launches first wind power project in Ilocos, largest in SEA
By Ted P. Torres
The Philippine Star 06/19/2005

The Philippines is set to inaugurate next week its first-ever wind power generating project at Bangui, Ilocos Norte, considered the largest wind power project in Southeast Asia.

"The 24.75-megawatt wind power plant in Bangui Bay establishes a high point in our search for renewable source of power. The wind farm is the largest wind farm project in Southeast Asia," Energy Secretary Raphael P.M. Lotilla said.

The energy department, he said, has four more wind-powered plants in the pipeline and 11 more sites up for grabs.

The Bangui plant is composed of 15 towers with an installed capacity of 1.65-MW wind turbines generator per tower, which will be connected to the national grid.

"That underlines the potential for several other sites that we have all over the country, which also have the potential for wind farming," Lotilla added.

Financing for the wind power project sites are available through multilateral sources or domestic sources, which include sovereign guarantees.

The Bangui Bay project involves a joint venture company composed of Filipino and Danish investors with funding from the Danish International Development Agency (Danida) worth $29.35 million.

It is guaranteed by the Philippine Export-Import Credit Agency (PhilEXIM).

The Development Bank of the Philippines (DBP) has financing packages under its Wind Energy Financing Program, Renewable Energy Project Preparation Revolving Fund, the Rural Power Project for Type-A and Type-B Beneficiaries, and other initiatives.

The United Nations Development Programme Global Environmental Facility (UNDP-GEF) is also offering assistance in project preparation and in securing loan guarantee for these projects.

Already in the pipeline are three sites in Marinduque, Baleno in Masbate, and in Tablas, Romblon with a combined 30-MW capacity to be operated by the Philippine Hybrid Energy Systems Inc.

Trans-Asia Renewable Energy Corp. was also awarded a contract for a potential 30-MW wind project in Sual, Pangasinan, along with a 25-MW wind farm project in San Carlos, Negros Occidental run by the San Carlos Wind Power Corp.

Companies interested in the remaining 11 sites can secure the pre-commercial contracts with the Department of Energy (DOE).

The energy department launched the first wind power contracting round that offered the 16 wind sites early this year. But the concept and studies were undertaken several years back with the aid of the United States government.

Arroyo rallies support for energy conservation
Posted: 1:30 AM | Jun. 24, 2005
Ronnel W. Domingo
Inquirer News Service

PRESIDENT Gloria Macapagal-Arroyo, labeling the people behind "this attempt at a power grab" economic saboteurs, yesterday called on the private sector to support her administration's efforts in mending the country's battered economy.

Speaking before an energy efficiency and conservation summit held at the Westin Philippine Plaza in Manila, Ms Arroyo said "no amount of political squabble would prevent me from seeking to improve the lives of the people."

She was alluding to controversies hounding Malacañang aimed at removing her from power.

Ms Arroyo said the current uptrend in world oil prices was aggravating the country's economic hardship and was much worse than the oil crises that rocked the world in 1974, 1979 and 1991.

"Let's take energy conservation seriously and without complacency," she said, adding that such efforts added to the drastic measures her administration had been taking since she became President.

She said the other such measures included new tax measures, reforms in the energy sector and increases in workers' wages.

"We had to [take these steps] because the nation is paying for past sins, such as the sin of excessive debt," the President said.

"I came to office to improve the [country's] economic rating and not to improve my public approval rating," she added. The President thanked the business groups in making the move to promote energy conservation, saying that such support was what the government needed.

"I urge you to help me end divisiveness and political warfare," she said. "What's important to me is the economy, to do the right thing unlike those who are no better than economic saboteurs."

Ms Arroyo said the government's efforts to save on energy have resulted in some P1.2 billion in savings aside from the P5.9 billion saved from the National Power Corp.'s improvement of power generation and the P144 million saved when the four-day workweek was implemented in April and May.

During the summit, a coalition of 29 private companies and groups led by the Philippine Chamber of Commerce and the Advertising Board presented to the President a manifesto committing themselves to promote energy conservation measures in their workplaces. The signatories also urged the government to follow suit as they sounded the alarm on another oil price shock.

According to Energy Secretary Raphael Lotilla, who was also present in the forum, latest data showed that the price of crude oil had reached $60 a barrel on the New York Mercantile Exchange and the price of Dubai crude stood at $53 a barrel.

Palace joins efficient lighting drive


By MYRNA M. VELASCO

With energy costs constantly trailing uptrends, Malacañang has joined the fray in the promoting of efficient lighting and energy use up to the level of household end-users.

Rallying the support of the business sector and all other customer classes, President Gloria Macapagal Arroyo has called on households and firms to use efficient lamps to drive down their electricity costs.

One of the proposed measures is to shift light usage to compact fluorescent lamps or (CFLs) which are deemed more energy-efficient than the regular incandescent bulbs.

The Department of Energy (DoE) has articulated that for a 20-watt CFL, this is five times brighter in terms of lumens per watt than a 100-watt incandescent bulb. CFLs are also proven to have longer life span than incandescent bulbs.

"Although CFLs may be appear to be more expensive than incandescent bulbs, CFLs are in fact cheaper in the long-term, given that the use of incandescent bulbs will result in greater electric consumption and higher out-of-pocket costs," said Energy Secretary Raphael P.M. Lotilla.

A report by the Philippine Lighting Industry Association (PLIA) has indicated that roughly 35 to 40 million incandescent bulbs are being used in the country, which when simultaneously lighted during peak hours would consume about 2,400 megawatts of electricity, assuming these are 60-watt bulbs.

PLIA also estimated that displacing one sixth of the total incandescent bulbs in the country would defer the construction of a 300-megawatt power plant.

Efficient lighting is one of the components of energy audits being undertaken by DoE for commercial and industrial firms, including government agencies. Last year, DoE reported savings of about P1.2 billion arising from energy efficiency measures.

Via the government-devised initiative, Philippines Efficient Lighting Market Transformation Project (PELMATP), a $15 million budget has been programmed that would be partly funded by a grant from the Global Environment Facility (GEF) of the United Nations Development Programme (UNDP).

Aside from promotion of CFL use, the program will cover energy efficient versions of linear fluorescent lamps (standard versus the slim tubes), high intensity discharge (HID) lamps, ballasts (primarily low loss electromagnetic and electronic); and luminaries.

It has been hoped that the project will accelerate integration of energy efficient lighting programs to the planned activities of the DoE on the sphere of promoting the use of energy efficient lighting systems.

The use of energy efficient lighting, it was said, is one of the strategies being pushed jointly by the government and private sector in promoting energy efficiency; which also have a tailing effect on environmental preservation; thus, lessening contribution of inefficient lighting system to the dismal problem of global warming.

Statistics have indicated that the market for energy efficiency technologies in the Philippines could hit as high as $655.6 million; about 8.0-percent of which can be attributed to lighting

Methane gas may soon provide power for Payatas homes

First posted 04:22pm (Mla time) June 26, 2005
By DJ Yap
Inquirer News Service

Get INQ7 breaking news on your Smart mobile phone in the Philippines. Send INQ7 BREAKING to 386.

HOMES in Payatas, Quezon City may soon be powered by a methane gas-to-energy plant that is cheap and earth-friendly.

The Quezon City government has announced that its methane gas extraction and conversion project in Payatas is nearing validation as a Clean Development Mechanism (CDM) project under the Kyoto Protocol.

Once validated, the project will potentially generate revenues through "carbon credits" and help finance the construction of a one-megawatt methane power plant to supply cheap power to Barangay (village) Payatas.

At present, Quezon City operates a small 100-kW methane gas power plant, which produces enough electricity for streetlights and other facilities within Payatas.

hmm... Coal-Fire Thermal Power Plant, sounds like a hybrid power plant, like those cars with petrol and electricity power.

Btw, is that Bataan Nuclear Plant just standing there for photos or actually being used, but for another power source?


HMMM anything run by coal emits dangerous fumes and is very harmful to the environment. The only coal mine in the Philippines is Semirara Island which has the youngest coal. Meaning the younger the coal the slower it would generate heat and the more emissions it will develop. Coal-Fired Thermal plant actually uses heat from boilers which actually releases it to bodies of water i.e. our sea shores...although at lower temperatures they have a long term effect on our marine ecosystems. Any change in temperature...i.e. increase would slowly kill planktons and corals which are vital for marine life forms..

Right now, Iloilo have the highest electricity rate in the country. About P7.50/kwh... And we have been experiencing brownouts because Iloilo doesnt want to have a coal-fired power plant...but the conspirators are keeping us hostage by charging the highest and sacrifice for the daily brownouts which were not common before...

Going for No. 1 in geothermal energy
Posted: 5:08 PM | Jun. 26, 2005
Going for No. 1 in geothermal energy
Posted: 5:08 PM | Jun. 26, 2005

Gil Francis G. Arevalo
Inquirer News Service

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Published on Page B3-1 of the June 27, 2005 issue of the Philippine Daily Inquirer

BACON, Sorsogon-Three to five years from now, the Philippines is seen becoming the world's biggest producer of geothermal energy.

From a current geothermal capacity of 1,500 megawatts (MW), the country hopes to eventually generate 5,000 MW of electricity from geothermal energy.

This would make the country account for more than half of the world's total geothermal energy production of 7,297 MW, according to Liberato Virata, newly appointed resident manager of the Philippine National Oil Company-Energy Development Corp. (PNOC-EDC) Bacon-Manito geothermal plant here.

Virata tells the Inquirer that the country needs to generate 500 MW to 700 MW more from geothermal energy to take the number 1 spot away from United States. The US currently produces more than 2,000 megawatts from geothermal energy.

"Right now the Philippines is the second largest producer of the said energy for electricity in the world. This is the very reason why the PNOC-EDC is very much determined to further develop all explored geothermal areas all over the country in order for us to further maximize the whole percentage of potential geothermal energy. It can be noted that only about 25 percent of total megawatts capacity at present are being harnessed," he says.

Among those geothermal areas that have been continuously developed are some areas in Bac-Man, northern Negros geothermal field in Negros Occidental with a capacity of at least 40 MW or more, Cabalian in Southern Leyte with 110 MW and Mt. Labo in Camarines Norte with a potential 120 MW.

"All of these can be developed in the next three to five years, and then by that time, the Philippines could be already the number one," Virata says.

He further discloses that in Bac-Man alone, the PNOC-EDC was enthusiastic about harnessing 100-150 MW of power in Tanawon, Sorsogon and Tayabon, Manito.

But he admits that to tap these areas, they need investors or at least loans from banks that continue to support PNOC's cause.

The Tanawon project is projected to generate 40-70 MW, which approximately costs P5.2 billion, while the Tayabon is said to have enough geothermal reserves to generate 30-60 MW of electricity.

"Based on our recent assessment, Bac-Man as one of the consistent and promising PNOC-EDC own geothermal projects in the country that can generate up to 300-350 MW at most. But at this point in time we need to rehabilitate some of the power plants of Napocor here, which will take from six months to one year to begin the exploration for potential commercially viable energy resource," he adds.

The Bac-Man geothermal reservation area was established through the Presidential Proclamation No. 2036-A issued in November 1980. It includes part of the municipalities of Sorsogon, Bacon and Castilla in Sorsogon province and Manito in Albay province.

PNOC operates the steam field and supplies steam to the 150 MW power plants of Napocor that are connected to the Luzon grid. Its operation began in 1977.

In 1994, the on-line continuous steam purity monitoring system was perfected in Bac-Man.

And in 1998, the silica deposition inhibitor geogard SX was developed and used commercially in Bac-Man, the only successful silica inhibitor in use in the world.

The Department of Energy has once again stressed that geothermal energy was the future of the country's energy resources.

Aside from being cheap, it appears sustainable because of the reservoir and environmental management programs that are implemented to ensure the sustainability of the geothermal field for the benefit of the present and coming generations.

The country has eight geothermal fields that have been operating since 1979.

These include geothermal plants developed by PNOC-EDC such as the Tongonan geothermal plant in Leyte (112.5 MW), Palinginon in Negros Occidental (112.5 MW), Kidapawan in Cotabato (with 110 MW), Leyte-A with 202 MW for the Cebu grid and another 440 MW for the Luzon grid, and also those being developed by the Philippine Geothermal Inc. such as Tiwi in Albay (with 330 MW) and Makban in Laguna (with 425.7 MW).

In a statement, the PNOC-EDC said it would like to pattern the operations of different potential geothermal energy sources in the country after the successful geothermal operations in Lardello, Italy for, since its pioneering operation in 1904, its geothermal field is still operating and is a favorite tourist attraction.

"Technically and scientifically speaking the life-span of geothermal energy in the country is about 25-50 years. But we really hope that this could be sustainable even up to 100 or more years. For, aside from the royalties to be paid among the stakeholders, it's proven that most of the geothermal plants managed by PNOC-EDC have proven to be very helpful in any social and community livelihood projects and reforestation of trees and other concern areas."

Coal is the cheapest form of energy generation plants. While it does have nox sox etc. The new plants actually conform to Kyoto standards already. The second cheapest in Natural Gas but we don't have the infra for it. ( you need pipelines and lng is not cheap too).

All in all there is no powerplant that does not have drawbacks. Geothermal had the acidic thing and those people in APO claiming ancestral Domain. Hydro has the river guys claiming death of riverine fish runs etc, wind is being sued for visual pollution !!!

Basically choose your poison and try to mitigate to the best of your situation.

Philippines' Aboitiz To Consolidate Hydropower Operations
Monday June 27, 2005, 4:51 pm
DJ Philippines' Aboitiz To Consolidate Hydropower Operations

MANILA (Dow Jones)--Aboitiz Equity Ventures Inc. (AEV.PH), a Philippine holding concern, said Monday the operations of its hydropower generating units will merge into a single unit.

In a disclosure to the Philippine Stock Exchange, the holding group said Hedcor Inc., Hydro-Electric Development Corp., and Northern Mini Hydro Corp. signed an agreement to merge into a single operating concern with Hedcor as the surviving entity.

"The move will simplify and streamline business operations, optimize the use of resources, and position AEV (Aboitiz) for growth in an increasingly competitive energy environment," said the holding company.

Upon the completion of the consolidation, Hedcor will have control over generating assets and interests worth PHP3.3 billion, said Aboitiz. The assets include 19 hydropower plants with a total installed capacity of 113 megawatts. The plants service customers in Benguet, Pampanga and Ilocos Sur provinces in northern Philippines, and Davao province in southern Philippines.

In 2004, the total revenue of the companies lined up for consolidation stood at PHP1.198 billion.

Following the consolidation, Hydro-Electric Development Corp. and Northern Mini Hydro Corp. will continue to exist as holding concerns whose main assets will be their respective shares in Hedcor.

Hedcor will absorb the 253 employees of the merged entities.

Looking forward, Aboitiz said it will be positioned to aggressively pursue opportunities from the privatization of state utility National Power Corp.'s (NAP.YY) hydropower assets as well as to develop new hydropower projects.

-By Micheline R. Millar, Dow Jones Newswires; 632-885-0288; micheline.millar@dowjones.com

-Edited by Craig Lewis

RP’s improved oil dependence —a consolation for today’s tough times
PHILEQUITY CORNER By Ignacio B. Gimenez
The Philippine Star 07/04/2005

In our last week’s article, we talked about the "triple whammy" of higher oil prices, political uncertainty and a stronger US dollar as being the key negative factors which has been dampening the local financial markets. In all, these factors have undermined the improving domestic macro picture and the progress being achieved by the government with regard to fiscal reforms.

With oil prices already reaching the $60/barrel, local pump prices have once again increased which should put upward pressure on inflation given its direct impact on wages, transport and electricity costs.

Given such a scenario, we have taken a look at several metrics in order to ascertain the impact of sustained oil price increase to our country. However, we would like to note that we are quite fortunate that we are not as dependent on imported oil today compared to the oil shocks of the mid 70s or early 80s.

Less Dependent On Imported Oil Compared To Previous Oil Shocks

We have graphed both indigenous and imported oil as percentage to total energy demand for the country (1973 to 2004). We can see that during the major oil shocks of 1973 and 1979, the Philippines was 93 percent and 70 percent dependent on imported oil which is of course a big difference to today’s level of only 44.1 percent (as of 2004).

Over the past several years, the government has been successful in sourcing out new and indigenous sources of energy such as geothermal, hydro power, coal (e.g. Semirara Mining) and natural gas (e.g. First Gas). We have included the respective contribution of each energy source to the total indigenous energy mix in the pie chart below.
Ramos And GMA Administrations Improved RP’s Self Sufficiency
We have tracked all the administrations since 1986 and looked at their performance when it comes to improving the country’s energy mix. It shows the imported oil dependence at the start of each President’s term and the respective numbers at the end of their term. The "Net Change" column is the net improvement during their term.

We can see that Ramos had the best track record with a 16-percent improvement in energy dependence from 62 percent when he took office versus 46.1 percent when he completed his term. This was followed by the current administration with a net change of plus 10 percent from 54.3 percent in 2001 versus 44.1 percent as of 2004.

Meanwhile, the Aquino and Estrada administrations posted a minus 14.6 percent and minus 8.2-percent net change respectively.
RP To Be 62-Percent Energy Sufficient By 2010 And 38 Percent Dependent On Imported Oil
According to the Department of Energy’s Medium Term Plan, the government is targeting to be over 62-percent self sufficient in terms of total aggregate energy mix and only 38 percent dependent on imported oil by 2010.

To achieve this, the DOE has developed a five point plan:

• Increase reserves of indigenous oil and gas

• Aggressively develop renewable sources of energy such as biomass, wind, ocean and solar.

• Increase use of alternative fuels

• Strategic alliances with other countries

• Strengthen and enhance energy efficiency

In conclusion, while its true that the country maybe experiencing hard times due to the impact of higher oil prices, we are fortunate that we are not experiencing extreme situations such as gas rationing, or long queues in the gas station as we had experienced in the oil shocks of the 1970s. If there is any "consolation" to all the difficulties we are facing right now, things would have been much worse had the government failed in sourcing out new indigenous sources of energy several years ago

Ukraine firm to set up power plants fueled by coconut husks
By Pia Lee-Brago
The Philippine Star 07/08/2005

An energy company based in Ukraine will set up power plants around the Philippines using the country’s leading produce – coconuts, the Department of Foreign Affairs (DFA) announced yesterday.

Philippine Ambassador to Moscow Ernesto Llamas said Sukhin Energy, Inc. (SEI) has finalized an agreement with the Philippine National Oil Co. (PNOC) to initially install a 2.5 megawatt synthesized gas station that could generate 10-12 megawatts of electricity for the island of Masbate using coconut husks.

The project, valued at $7 million is the first joint venture between the Philippines and Ukraine. It will serve as a pilot project with 75-percent Ukrainian financing.

Llamas said the project will provide sustainable environment friendly electricity for Masbate’s 600,000 residents and utilize a waste product from a bountiful Philippine resource. The low capacity autonomous stations are especially useful in a country of 7,107 islands, he added.

The invention, RGV-2000M gas synthesizer was publicly unveiled on June 26 by prominent Ukrainian scientist and SEI president Yevgeny Sukhin, using 20 tons of coconut husks shipped from the Philippines.

The demonstration was held for a Philippine congressional delegation who went to Ukraine recently.

The RGV-2000M produces synthesized gas through the process of pyrolysis from agricultural, mining or household by products and vegetable waste such as saw dust, stone and brown coal, peat and lignin.

The fuel gas is used in the production of thermal and electric energy.

If supplementary equipment will be used, the station could also double as an ice production plant.
Sukhin said his invention boasts of transportability and high efficiency at low cost.
The RP-Ukrainian project is the third in a series of innovations developed recently for Philippine coconut products.
Coconuts are abundant in the Philippines and constitute one of the Philippines’ biggest export products.

High prices to consumers toughest challenge to future energy investments
by MYRNA M. VELASCO

MILAN, Italy — The soaring prices of energy commodities, primarily oil and electricity, coupled with what were deemed as yet unstable regulatory policies in most countries, have been emerging as the toughest challenge to future energy investments.

Given all these major dilemmas, private investors who are expected to pour in the much-needed capital for future energy projects are critically studying future trends and policy options that are workable and viable to satiate future demand, as discussed by experts and industry players at the PowerGen Europe conference here.

Countries enticing new power projects are likewise reminded that difficulties in the global power market lingers, and in the midst of all these, there are only limited number of investors willing to sink in capital, thus, it is important that "legal and regulatory background must be right…and that predictable and transparent framework that ensures access and engenders investment must be there."

Matthew Hastings, director for International Programs of Edison Electric Institute of the US, conveyed that crucial concerns that have been causing worries to investors must be given prompt and particular attention by governments and policymakers.

He noted that inconsistent and unreliable market or regulatory policies remain an imminent concern, adding that "shortfall in project revenues has always been considered a major risk."

Since the world is currently faced with the ominous scenario of expensive energy, one of the significant factors being weighed by industry stakeholders is setting in a healthy balance in the energy mix, as this is expected to partly address such dilemma.

Primarily in the area of power generation, Gerald Doucet, secretary general of the London-headquartered World Energy Council (WEC), pointed out that "coal based fuels will remain a major energy source in the coming years with clean coal technologies coming to the fore."

Natural gas and renewable energy resources are also expected to have an increasing share in the energy mix; but coal will remain as the top choice for baseload power generation because it has the most abundant proven reserves and thriving among the cheapest.

This view is shared by the Paris-based International Energy Agency (IEA), stating that the world cannot ignore coal as a critical fuel to meet long-term power demand; but cautioned that governments and industry players should recognize that policies are needed to encourage deployment of clean coal technologies and to accelerate the improvement in these facilities’ environmental performance.

Doucet added that coal-to-liquid fuel and carbon sequestration would be among the technologies to be employed to address environmental concerns arising from noxious substances being spewed out from coal-fired power generation facilities.

Among the technical solutions being offered are improved combustion efficiency and reduced emissions, coal gasification, new approaches to carbon capture and storage, and the production of hydrogen from coal, which will play a part in the transition to a hydrogen-based energy future.

Meanwhile, Dr. Marcello Capra, representing the director of the Energy and Mineral Resources of Italy’s Ministry of Productive Activities, emphasized that for them to address environmental concerns over coal, Italy is taking a closer interest in the United States-Department of Energy’s (US-DoE) FutureGen initiative; which is designed to move promising technology to achieve ultra-low and near-zero net emissions from new coal-based generating plants.

In the wake of power market liberalization being pursued by various economies worldwide, Hastings emphasized that "profitability and return on investment are key determinants" being watched out by private investors.

Hmmm........ a world first? Never heard anything powered by coconuts before:D I hope this is one small step into our own power dependence, with our own natural gas, hydro, wind, etc. less oil.

DOE awards 3 coal exploration contracts for power generation
By Rocel C. Felix
The Philippine Star 07/08/2005

The Department of Energy (DOE) has awarded three more coal operating contracts (COCs) to explore and develop coal resources for power generation.

The DOE awarded COC 140 to the Philippine National Oil Co. Exploration Corp. (PNOC-EC) to explore three blocks, equivalent to 3,000 hectares in Cagwait Surigao del Norte.

PNOC-EC also bagged COC 141 to explore coal deposits in three blocks in Naguilan and Benito Soliven town in Isabela.

The third contract, COC 142, was awarded to Visayas Multiminerals Mining and Trading Corp. to explore another three blocks in Toledo City, Cebu.

"These are just exploration contracts to determine if it could be commercially viable," said Energy Undersecretary Guillermo Balce.

Coal exploration is one of the DOE’s major programs to increase the country’s exploration and development of indigenous energy resources and subsequently, reduce its dependence on imported fossil fuels whose prices have steadily risen in recent years.

Earlier, the DOE awarded five COCs to four local companies for the exploration and development of coal resources in Southern Luzon, Cebu Province, and Mindanao.

The DOE awarded to SKI Construction Group, Inc., formerly known as Summa Kumagai Inc., two exploration contracts for coal areas in Alpako, Naga and in Danao City, both in Cebu Province.

Rock Energy International Corp. was awarded the contract to explore coal in three blocks with an area of 3,000 hectares, located in Siocon, Zamboanga del Norte.

Bonanza Energy Resources Inc. will explore the coal-bearing areas located within eight coal blocks in the provinces of Sultan Kudarat, South Cotobato and Sarangani.

Currently, demand for coal in the local market is steadily increasing but majority of the supply comes from abroad.

The other existing COCs are those of MG Mining and Energy Corp. for South Cotabato in Mindanao and in Southern Cebu areas; Forum Exploration Inc. for Balamban-Naga, Cebu and Dalaguete, Cebu coal fields; Philex Mining Corp. for Diplahan-Buug, Zamboanga Sibugay and Samaju Corp. for Batan Island in Rapu-rapu, Albay.

Estimates show that the country’s total coal reserves stand at 343.4 million metric tons (MT). Local coal production hit an all-time high of 2.72 million MT last year, up by 34.3 percent from the previous year of 2.03 million MT. In 2002, production was registered at 1.66 million MMT.

The market supply outlook in 2005 from production and importation of coal is 8.03 million MT, of which some 2.55 million MT will come from local coal production.

Power and other industrial sectors are the bulk users of coal, with the power sector traditionally accounting for about 80 percent.

Hmmm........ a world first? Never heard anything powered by coconuts before:D I hope this is one small step into our own power dependence, with our own natural gas, hydro, wind, etc. less oil.


Yup....If possible, let's reduce our oil dependence to 10%-20% of our total energy requirements...

I wonder how much a solar panel good enough for home lighting costs nowadays...

DOE to bid out more exploration contracts next month
By Rocel C. Felix
The Philippine Star 07/09/2005

The Department of Energy (DOE) is preparing to bid out next month several service contracts under its Petroleum Contracting Round (PCR) for 2005.

The auction will include the opening up of four blocks for petroleum, 10 sites for geothermal, and four areas for coal exploration.

Energy Undersecretary Guillermo Balce said the specific areas to be bid out will be announced shortly.

He said the areas identified have good prospects for petroleum, geothermal and coal production, and once developed, will substantially reduce the country’s dependence on imported fuels and promote energy diversification.

PCR 2005 is part of the DOE’s eight-point action plan to accelerate the country’s energy program and ensure energy security over the long-term.

Each petroleum block covers an area of around 12,000 square kilometers. Several prospective areas in offshore west Palawan and Sulu Sea will be offered to interested investors.

The petroleum sedimentary basins of these areas are considered to be the most prospective in the Philippines for petroleum exploration.

Energy Secretary Raphael P.M. Lotilla earlier said government would also bid out geothermal blocks for power and non-power purposes.

These include multi-crop drying, salt-making, refrigeration by absorption and even hot bath and spa.

Lotilla said coal also has strong market potential.

"Coal potential remains high. Locally produced coal supplies about 20 percent of the country’s 10 million tons per year coal requirements, thus there remains a vast market for additional coal production for clean coal power generation and the cement industry," said Lotilla.

In the first petroleum contracting round, BHP Billiton with Unocal Corp., Amerada Hess, and Sandakan Oil, submitted bids for two blocks in the deep water part of the Southern Sulu Sea, covering about 8,000 square kilometers.

The DOE in August 2003 bid out 46 new exploration blocks located near the Malampaya gas field in Palawan and other oil and gas discoveries and producing fields in Southwest and East Palawan Sea and Reed Bank.

Is the country contemplating on possibly using nuclear power?

Can't.. in the constitution Nuclear power is banned

good idea,
just think of all the waste we have to hide deeeeeep down in salt mines for hundreds and hundreds of years alone in germany. and noone really up to date knows what will happen with the stuff when our grandchildren will stand on their own feet. besides, some of it is sold on the black market, recycled and transformed into handy little nukes...its only a matter of time when we will see a little terror attack with one of those hand-bag sized babies ! and that just because some people think they can play god and invent "clean energy". no thank you. so, good idea to ban nucular power from prospering, especially in a country with 22 active volcanoes and sudden earthquakes, good idea !

yup...we don't need nuclear power. we can extract energy from our active volcanoes.

It would be nice if Arroyo we're to develope the Philippines as the world's laboratory for alternative sources of energy. I mean we have it all, lots of sun, lots of wind, lots of water (salt water), lots of volcanoes, and lots of coconuts.

I think she's already thinking of this though. The Philippines can welcome researchers from different companies around the world to invest time and research here. Also, it would be prudent for the government to require these researchers to share their found technologies in return.

This is one the many reasons I have this deep enmity towards Hummers. They consume so much energy that they drive up prices for everyone else. Being from Chicago, which is FLAT, i tend to deride owners of Hummers. I also absolutely hate it when hummers SLOW DOWN going through tiny pot holes during the winter time. I get road rage.

Power sector gets $950-M funding from ADB
Posted: 11:10 PM | Jul. 10, 2005

Michelle V. Remo
Inquirer News Service

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Published on Page B1 of the July 11, 2005 issue of the Philippine Daily Inquirer.

THE ASIAN Development Bank has signed a memorandum of understanding with the Philippine government on a $950-million financial assistance to the country's power sector, not minding the political turmoil that could dampen stability on the local fiscal front.

The MOU was signed last week, while the formal deal and full details of the assistance are expected to be signed and established in the coming weeks.

Finance Secretary-designate Roberto Tan said the $950 million consisted of a direct credit worth $450 million, and a guarantee to the planned bond float by Power Sector Assets and Liabilities Management Corp. (PSALM) worth $500 million.

He said PSALM was preparing the $500-million bond issue, the proceeds of which will be used to meet the state-owned firm's financing requirements.

The $450-million direct credit will be used to fund the requirements of losing state-owned power firm National Power Corp. (Napocor). Tan said PSALM and the Department of Finance were looking for another creditor that could extend co-financing for Napocor.

The two agencies are considering the Japan Bank for International Cooperation, although no specific amount of co-financing has been set.

Napocor expects to post a budget deficit of P4.16 billion this year.

While Napocor's deficit still account for one of the biggest among government-owned or -controlled corporations this year, the power firm's projected budget gap for 2005 is already a significant improvement from the previous year's P73.38 billion.

Finance Undersecretary Nieves Osorio, who monitors state-owned firms, earlier said the much better deficit position of Napocor would result from the expected collection of the proceeds from the sale of some of its assets, including the Masinloc coal-fired power plant.

(1 dollar = 56.10 pesos)

the philippines is currently one of the highest ratios of renewable to generated power in the world (among the larger countries, small countries can easily throw off the scale.)

The whole world is looking at nuclear power right now because of new technologies but it's still cheaper to use coal then Natural Gas. Of course with Kyoto Protocol concerns these are eventually going to be phased out. That's why nuclear is being considered again.

Sandrin

A solar panel good enough to light a few light bulbs plus a tv for a few hours a day will be around 250$. You also need to change the battery every two years the contents of which are toxic so must be disposed of properly. Battery disposal is actually a bigger problem in an absolute sense than nuclear disposal. You can probably expect the cost of this to go down by 50 to 80% in 10 to 15 years time. Of course by that time the other technologies would also have improved.

Coal should not be phased out in the long run. The best alternative would be to find ways to neutralize nox substances being emitted by the coal plants to adhere to environmental standards. To sum it up, I will quote the article posted previously with regards to the solutions being considered;

"Among the technical solutions being offered are improved combustion efficiency and reduced emissions, coal gasification, new approaches to carbon capture and storage, and the production of hydrogen from coal, which will play a part in the transition to a hydrogen-based energy future.

Meanwhile, Dr. Marcello Capra, representing the director of the Energy and Mineral Resources of Italy’s Ministry of Productive Activities, emphasized that for them to address environmental concerns over coal, Italy is taking a closer interest in the United States-Department of Energy’s (US-DoE) FutureGen initiative; which is designed to move promising technology to achieve ultra-low and near-zero net emissions from new coal-based generating plants."

totally agree with you there. people have a tendency kasi to get overexcited when they see buzz words like coal and nuclear and oil, when they should be focusing on what makes them bad so you will not forget why you use them in the first place.

many people get stuck on the label of coal or nuclear, but the technology changes and what may be true 10 20 30 years ago may be different now.

when I say phased out I actually mean that people willnot choose it, rather than it being regulated out.

Are there statistics for how much of Philippine energy is from coal, from oil, from natural gas, wind, etc. ?

Yes in the department of energy. I'm not sure if it's in the website but they do track it. I'm very sure you can google it and the information will be accurate maybe a lag of a few years at most.

heres the link to DOE...

click here:
Dept of Energy (http://www.doe.gov.ph/)

theyve got some informative presentation materials on Philippine Energy Plan both regional & national levels.

BA affiliate willing to fund $3-B coal conversion plant
By Rocel. C. Felix
The Philippine Star 07/12/2005

The United States Bank Corp. (USBC), an affiliate of the Bank of America (BA), has expressed interest in bankrolling the $3-billion coal-to-fuels conversion project in the country.

If the project pushes through, the Philippines will become the refinery hub for the expansion of coal to fuel sources in Southeast Asia.

"US Bank Corp. is the sister company of Bank of America. It gave us a strong indication that it is very interested to package the coal-to-fuel project in the Philippines. US Bank Corp.’s portfolio investment in the country is worth $5 million,"said Energy Undersecretary Peter Anthony Abaya.

The Department of Energy (DOE) is also holding discussions with other foreign funding agencies willing to finance the project.

The first phase study of coal conversion to crude oil, diesel and unleaded gasoline conducted by US technology firm Headwaters Technology Innovations Group (HTIG) was recently completed.

HTIG signed earlier this year a memorandum of understanding (MOU) with the DOE for the establishment of a 50,000 barrel per day coal-to-fuels conversion facility in the country.

HTIG will put up a 25-kilogram per day pilot plant to study and determine the feasibility of converting the country’s indigenous coal to liquid fuel.

If the project is viable, commercial operations will start with the construction of a 50,000 to 70,000 barrels per day fuel-producing plant. HTIG will invest about $2 billion for this project.

Abaya said the preliminary results of the first phase of the feasibility study appears promising. "The preliminary result shows very good sign that this project can take off."

The MOU aims at not only reducing the country’s dependence on rising imported fuel costs but also enhancing the use of abundant indigenous coal which have long been considered as low-grade for power plant use.

Estimates show that the country’s total coal reserves stand at 343.4 million metric tons (MMT). Local coal production hit an all-time high of 2.72 MMT last year, up by 34.3 percent from the previous year’s level of 2.03 MMT. In 2002, production was registered at 1.66 MMT.

The market supply outlook in 2005 from production and importation of coal is 8.03 MMT, of which some 2.55 MMT will come from local coal production. Power and other industrial sectors are the bulk users of coal, with the power sector traditionally accounting about 80 percent.

The thrust to pursue the coal-to-fuels project should also revive the local coal industry, which took a backseat when focus shifted on the development of new natural gas projects.

Over the years, coal’s share in the country’s fuel mix declined but there are now several coal mines under development, mainly on the southern island of Mindanao.

Other foreign financial institutions have expressed interest in several natural gas programs, such as the liquefied natural gas and the compressed natural gas which the DOE hopes to jumpstart in three years.

These include CitiBank Group, US Export-Import Bank, Overseas Private Investment Corp., and JP Morgan.

The investment requirements would be from $500 million to $1 billion for a liquefied natural gas terminal. The costs would be bigger with the installation of a gas pipeline.

US engineering firm will assist in Malampaya oil rim
By PAUL ANTHONY A. ISLA, The Manila Times Reporter

US-based marine and engineering consultants Argo Group LLC will assist the Philippine government in developing the Malampaya oil rim, according to the Department of Energy.

"We believe we have clearly defined the benefits of our proposed solution and trust that the plan may be considered as part of a realistic solution. The proposed solution not only exploits the proven oil reserves cost effectively, but also allows for protection of the existing gas reservoir," Argo said, in a letter to the energy department.

The US company plans to provide a solution for the safe extraction of resources in a multistaged approach, which is minimally intrusive of existing reservoir operations.

Argo said a three-year window, which already includes a long-lead time, is available for extracting oil based on information furnished by the Philippine National Oil Co.

Under its plan, oil may be available by May next year, it said.

After the three-year window, the reservoir pressure will have been depleted from the existing gas production, thus preventing commercial oil production.

The Argo plan also provides the Philippine government early production and a multistaged fit-for-purpose solution, which is technically and commercially sound for recovering reserves from four million to 40 million barrels.

The US company explained that the concept allows continuous production from the existing wells, while a drilling rig simultaneously develops production wells as dictated by progress and reservoir performance.

"We feel this approach is prudent and lends itself to optimize overall unit recovery cost through early revenue stream generation," Argo said.

Solar power activated in rural South Cotabato village

First posted 11:52pm (Mla time) July 23, 2005
By Alexander Villafania
INQ7.net

A SMALL village in Lake Sebu, South Cotabato is the latest recipient of a 31.6 million-peso Solar Power Technology Support Program (SPOTS) of the Department of Land Reform (DLR) that aims to provide electricity to rural areas in the Philippines not within main power grids.

The village of Ned in Lake Sebu was provided with solar home lighting systems (SLHS) costing a total of 17.34 million pesos. About 260 of their residents are DLR’s agrarian reform beneficiaries (ARB).

The New Tupi Multipurpose Cooperative and the Kibang Multipurpose cooperative received four AC 10 block power systems costing a total of 14.15 million pesos.

The SLHS provides up to 22 hours of power to homes while the AC 10 block power system supplies electricity to agribusiness projects and other income-generating activities of cooperatives.

The AC 10 block power system can drive a three-horse power double phase motor for a maximum of 4.5 hours a day.

The DLR’s SPOTS, which started in 2000, is a three-year program to provide solar-powered electrical systems to 74 agrarian reform communities (ARCs) in 41 provinces in the Philippines

It received a 2.3 billion-peso funding from the Spanish government through the Agencia Española Cooperacion Internacional, a Spanish mixed credit facility.

good news. I remember Solar Power Energy generation is cleaner and safer. It's a big help for those living in South Cotobato. :okay:

Im Confused. Shouldn't NAPOCOR be number 2? or are you talking about the largest PRIVATE power companies?
distributor nga e....

Leyte-Cebu power link to start operation Aug. 23

Cebu City -- The $68-million Leyte-Cebu Interconnection Uprating Project will start operation on August 23.

Barring any technical problems, commercial operation should start a week or two later and the Cebu-Negros-Panay (CNP) grid will get an additional 200 megawatts from Leyte’s geothermal fields, said Arnaldo B. Claudio, Visayas transmission projects principal engineer.

Mr. Claudio said they had completed the functional test of the new pieces of equipment. Contractors Kanematsu and J-Power Systems, which started implementing the uprating project in June 2004, completed it ahead of schedule.

"One to two weeks from the start of the energization, it may proceed eventually to commercial operation if there will be no technical constraint," he said in a briefing. The completion of the project is expected to address the 180-megawatt shortage in the CNP grid. At present, the grid is powered partly by the existing Leyte-Cebu interconnection which provides a maximum of 200 megawatts.

The uprating project involved the installation of three new submarine cables from Tabango, Leyte to the town of Daanbantayan, Cebu. The power substations in Tabango and Talisay, Daanbantayan were expanded while a 150-MVA transformer was installed in Compostela town. -- Jun P. Tagalog

RP launches first wind power project in Ilocos, largest in SEA
By Ted P. Torres
The Philippine Star 06/19/2005

The Philippines is set to inaugurate next week its first-ever wind power generating project at Bangui, Ilocos Norte, considered the largest wind power project in Southeast Asia.

"The 24.75-megawatt wind power plant in Bangui Bay establishes a high point in our search for renewable source of power. The wind farm is the largest wind farm project in Southeast Asia," Energy Secretary Raphael P.M. Lotilla said.

The energy department, he said, has four more wind-powered plants in the pipeline and 11 more sites up for grabs.

The Bangui plant is composed of 15 towers with an installed capacity of 1.65-MW wind turbines generator per tower, which will be connected to the national grid.

"That underlines the potential for several other sites that we have all over the country, which also have the potential for wind farming," Lotilla added.

Financing for the wind power project sites are available through multilateral sources or domestic sources, which include sovereign guarantees.

The Bangui Bay project involves a joint venture company composed of Filipino and Danish investors with funding from the Danish International Development Agency (Danida) worth $29.35 million.

It is guaranteed by the Philippine Export-Import Credit Agency (PhilEXIM).

The Development Bank of the Philippines (DBP) has financing packages under its Wind Energy Financing Program, Renewable Energy Project Preparation Revolving Fund, the Rural Power Project for Type-A and Type-B Beneficiaries, and other initiatives.

The United Nations Development Programme Global Environmental Facility (UNDP-GEF) is also offering assistance in project preparation and in securing loan guarantee for these projects.

Already in the pipeline are three sites in Marinduque, Baleno in Masbate, and in Tablas, Romblon with a combined 30-MW capacity to be operated by the Philippine Hybrid Energy Systems Inc.

Trans-Asia Renewable Energy Corp. was also awarded a contract for a potential 30-MW wind project in Sual, Pangasinan, along with a 25-MW wind farm project in San Carlos, Negros Occidental run by the San Carlos Wind Power Corp.

Companies interested in the remaining 11 sites can secure the pre-commercial contracts with the Department of Energy (DOE).

The energy department launched the first wind power contracting round that offered the 16 wind sites early this year. But the concept and studies were undertaken several years back with the aid of the United States government.

a follow-up: :)

Harnessing wind for energy

BERNARDO VILLEGAS


Energy experts say that windy Philippines (I’m not referring to our politicians) has a potential of over 700 megawatt from wind power. I recently visited the first wind-powered energy project in Asia, located in the very scenic Bay of Bangui in Ilocos Norte.


Governor Ferdinand Marcos Jr. of Ilocos Norte should be congratulated for hosting this innovative project that has once again put the Philippines on the international energy map. We are already a world leader in geothermal energy. Soon we can be an Asian pacesetter in wind-powered energy as other provinces and regions follow the example of Ilocos Norte.

The Bangui Bay Project was put into full operation last May 7, 2005. It is impressive to see the 24.75 MW power generation plant consisting of 15 units Vestas NM82 wind turbines rated at 1.65 MW each. The turbines are on shore and arranged in a single row spaced approximately 326 meters apart. The turbine’s hub height (ground level to center of nacelle) is 70 meters (roughly equivalent to a 23-storey building), each blade has a length of 41 meters (just 9 meters shy of an Olympic sized pool) giving a rotor diameter of 82 meters and a windswept area of 5,281 square meters.

Support facilities include the construction of a 30 MVA 13.8/69kV substation and a 57 km 69 kV transmission line traversing from the size to the delivery point in Laoag, Ilocos Norte.

All 15 wind turbines are connected to the Luzon grid and as of May 7, 2005 all 15 wind turbines had delivered power to the Ilocos Norte Electric Cooperative (INEC) via TransCo Laoag.

The project is owned by NorthWind Power Development Corporation composed of Filipino and Danish businessmen and engineers. It was heartening to meet the young Filipino engineers who were managing the Bangui project. They are among the worldclass engineers who are products of our own universities and can excel here or abroad given the opportunities.

We obtained a briefing from the young managers, who enumerated the multifarious benefits of the project:

Economic Benefits: A cheaper power for INEC’s consumers; for every kWh energy delivered by NorthWind, one centavo shall be for the benefit of the host community; employment and job opportunities during construction and operation of the wind plant.

Technical Benefits: Improve stability and electrical quality in INEC’s system; improve INEC’s system loss and transmission system via 57 km 69 kV line constructed by NorthWind; encourage load growth and new industries with the establishments of a 69 kV voltage transmission line along the main access road north of Laoag, Ilocos Norte; encouraging technology transfer with concerned governmental agencies and public/private technical schools and institutions.

Social Benefits: Attract more tourists due to the visual impact of the region’s ecological beauty and the wind farm’s ability to harness nature’s forces; uplift local populace awareness on NorthWind’s motto of "clean and green" towards generation of clean energy and the protection of the environment.

Environmental Benefits: Displacement of CO2 — 46,900 tons/year, SO2 — 802.0 tons/year, SPM — 1,604.0 SPM/year annually, which would otherwise have been emitted from a typical fossil fueled generating plant; generate clean and green electricity, NorthWind’s legacy for the future.

A visit to the Bangui Wind Power Site is a must for all engineering students in the country. Educational tourism could be added to the many other attraction of the province of Ilocos Norte. Students can be housed by the many private homes in the province that are being converted into bed and breakfast or home stay facilities.

There is an ongoing effort of the local government in partnership with various business groups to put up many of these bed and breakfast facilities that can enable more Filipinos — especially the young – to enjoy at affordable rates the numerous attractions of Ilocos Norte, including the first wind powered energy plant in Bangui, Ilocos Norte. For comments, my email is bvillegas@uap.edu.ph.

Good. There are at least 14 more Wind Power sites planning to be constructed.

Sukhin Energy vows contracts’ validity
By MYRNA M. VELASCO
Manilla Bulletin

Ukraine-based Sukhin Energy, Inc. (SEI) asserts that its standing agreements with state-run energy firms National Power Corporation and Philippine National Oil Company (PNOC) and the Department of Energy (DoE) for various energy projects remain in force in spite of the legal hurdles being thrown in the way.

It would be recalled that SEI executed a memorandum of understanding (MoU) with NPC in November last year for the use of biomass as alternative fuel source for some of the latter’s power plants.

The proposal put forward by the company is to install a 2.5 megawatt synthesized gas station that could generate 10-12 megawatts of electricity for the island of Masbate using coconut husks.

The project which requires an investment of $7 million is the first joint venture between the Philippines and Ukraine. It will serve as a pilot project with 75-percent Ukrainian financing.

This venture is seen to provide sustainable environment friendly electricity for Masbate’s 600,000 residents and utilize a waste product from an indigenous resource.

At the same time, the company inked a separate agreement with PNOC and DoE for the formation of a joint venture company, called the Segas Inc., that will set up one mother compressed natural gas (CNG) filling station and two daughter filling stations, in line with the government’s Natural Gas Vehicle Program for Public Transport.

"Since the signing of these two MoUs…no new agreement superseding them have been signed between Sukhin Energy and the NPC, PNOC and DoE," the company said in a statement made thru its legal counsel.

This, as it countered reports that Dr. Eugene Sukhin, formerly the company’s chairman, allegedly entered into new contracts with the said agencies for renewable energy power plant in Masbate and for the natural gas utilization of the transport sector being pushed by government.

On the strength of a writ of preliminary injunction issued by a regional trial court in Makati City, the company stated that Dr. Eugene Sukhin, "his representatives, agents, assigns and all persons and entities claiming right and authority under him are enjoined from entering into new agreements and/or contracts" with the PNOC, NPC and DoE and other entities seeking to dislodge any of the existing project agreements.

Should the court order be defied, it was further averred that, any of the transactions firmed up during the pendency of the case would be rendered illegal.

It would be recalled that since the government opened the doors of competition for the supply and utilization of CNG for the local transport sector, Sukhin Energy was among the first ones to respond to the call for new investments in this area.

The first pair of CNG mother-daughter station was committed by Shell Philippines Exploration B.V. for the mother facility; and its affiliate Pilipinas Shell for the daughter filling station due for completion by the end of this month.

The seven-year pilot phase of CNG utilization for the transport sector is seen as a very significant development; because this came with an offer of such alternative fuel at a very cheap price of P14.50 per liter; as compared to prevailing diesel prices which is already hovering the P27 to P30 per liter price range.

The energy department is anticipating that at least 200 buses running on natural gas would finally be deployed this year; and will serve as the biggest boost to the country’s diversification initiative on fuel use; with the end-goal of promoting cleaner air.

It was emphasized that the promotion and increased utilization of alternative transport fuels will consequently lessen the country’s dependence on imported fuel especially at a time of surging oil prices, resulting in lower transport fares as CNG is cheaper than diesel.

Geothermal explorations ongoing in the Visayas
By Wenna Berondo
The Philippine Star 08/11/2005

CEBU CITY — The government is exploring all geothermal fields in the Visayas for the possible construction of geothermal power plants not only to address the increasing demand for power here but also to save money.

National Transmission Corp. (Transco) president Alan Ortiz said that by operating geothermal plants, the government could save as much as P7.2 billion a year in fuel costs in the Visayas alone.

"Cebu does not have hydro (energy) so we explore geothermal. So as a matter of necessity, we explore renewable energy sources," he said.

Ortiz said that among the projects that they are focusing on is the construction of the Leyte-Mindanao interconnection, which is expected to provide additional 200 to 400 megawatts to Mindanao.

He said the Philippine National Oil Co. and the Energy Development Corp. are now exploring geothermal fields in Cabalian, Leyte to determine the size of the steam field there.

Ortiz said the 42-kilometer submarine cable would extend from Cabalian to north of Ormoc, Surigao del Norte and end up in Misamis Oriental and is expected to increase the power supply in Mindanao.

According to Ortiz, the project is targeted for completion in 2008, but the development and construction alone would take about five years.

The project was discussed a long time ago but was deferred due to financial concerns.

The estimated original cost of the project was $400 million, but Ortiz said they would reduce the cost by installing only a set of submarine cables, instead of two, from Leyte to Mindanao.

With just one set of transmission cables, the cost of the project would be reduced to half.

Meanwhile, Transco officials also announced that before the end of the month, the Leyte-Cebu interconnection uprating project, which is expected to double the carrying capacity of the existing cables from 200 to 400 megawatts, will be inaugurated.

Wenifredo Pangilinan, Transco vice president for engineering, said the project is expected to be energized by Aug. 23.

He said all the equipment in their cable terminal stations in Tabango, Leyte and Talisay, Daanbantayan, Cebu have been tested and readied for operation.

"We can say with great pride that we have resolved the power situation in Cebu and the rest of the Visayas," Ortiz said. — Freeman News Service

Hydropower plant to be set up in Davao Norte
By Jenny Molbog-Mendoza

A MULTI-billion peso hydropower plant will soon be established in Davao Region, the Department of Trade and Industry (DTI) reported.

DTI-Davao City Field Office director Teolulo Pasawa said Tuesday a Japanese investor is behind this project, which will be set up in Talaingod, Davao del Norte.

The expected capacity that will be generated from the hydropower plant is nine megawatts.

"This is the first-ever hydropower plant to be operated in the region. Right now, we still don't know kung gaano karami ang households na pwedeng supply-an nito. Wala pa kasi akong nababasang concrete details ng project," he said.

Pasawa said that although the plant capacity is only nine megawatts, it will still be a big help to the region especially that there is a looming power crisis in the Southern Mindanao area.

"This is already a big opportunity for us since sa construction level pa lang, may employment na mage-generate," he said.

The said hydropower plant will utilize the water coming from the Talaingod waterfalls in order to produce hydropower.

Meanwhile, the Board of Investments (BOI) said the project was not registered with them because it has not met the required 10 megawatts capacity.

"Under the IPP (Investments Priorities Plan), a hydropower plant should have a capacity of at least 10 megawatts before it can be registered with us. So, since it has not reached the requirement, we have already endorsed them to DOE (Department of Energy). The DOE will now take charge of the investment," the BOI said.

Both the DTI-DCFO and BOI can't give any information as to when the project will formally operate.

wow... I wonder if they also show these developments in television. I would personally prefer to hear these kind of news than the endless bickering of politicians..

They do you just don't notice them because they take years to fruition, by the time they're online napagsawaan na ang kwento. That delNorte powerplant sa liit niya as powerplants go, baka 3 - 4 years pa. By then other hot news will have taken over.

Learn from Iceland
By Antonio Abaya

But first learn from Brazil. With the price of petroleum crude reaching $67 per barrel and still going up, don’t we wish we had followed Brazil when it started pioneering in the use of ethanol — an alcohol derived from home-grown sugarcane — in the 1980s? In 2005, Brazil is exporting ethanol to Japan and South Korea at $25 per barrel, about one third of the price of crude.

More than half of all new cars in Brazil are said to have so-called “flex-fuel” engines that automatically adjust fuel injection depending on the ethanol-gasoline mix of the fuel.

During our energy crisis at the end of the Cory years, when we were experiencing 10-hour power outages everyday, there was much talk in media about learning from Brazil and setting up ethanol plants to replace at least part of our petroleum imports. It would also have been a boon to our moribund sugar industry, as sugar producers would have been encouraged to increase production, thus giving jobs to hundreds of thousands of our rural poor.

But like everything else in this country run by lawyers and politicians, it was all talk. As far as I know, not a single ethanol plant has been established here in the intervening 15 years to wean our transport and power sectors from total dependence on imported oil.

It is therefore a relief to read in the Aug. 15 issue of Standard Today that four minor players in the domestic energy market (Seaoil, Flying V, Unioil and USA 888) will soon start selling a 10 percent ethanol-gasoline mix at their pumps. At first, the ethanol, 25 million liters of it, will be imported, but there are plans to build an ethanol plant in Bukidnon. One has to ask: Why was all this not started 15 years ago?

According to the Aug. 05 issue of Newsweek, China has constructed the biggest ethanol facility in the world. It uses corn as raw material, but the Chinese are also experimenting with cassava, sweet potato (the lowly camote) and sugarcane. (Sugar — or other carbohydrates — from any crop can be fermented into alcohol.) Thailand is said to be building over a dozen ethanol facilities using sugarcane and rice husks as raw materials.

Newsweek quotes a Lew Fulton of the International Energy Agency that “without too much effort, producing ethanol from sugarcane in developing countries like Brazil and India could replace 10 percent of global gasoline fuel” and that Malaysia, Indonesia and Australia are well positioned to join Brazil as global suppliers of sugarcane ethanol.

Why wasn’t the Philippines mentioned as a source? We are a major sugar-producing country and can ferment sugar into alcohol as well as the other countries, if only our lawyer-politician leaders had more foresight and less hindsight.

According to Newsweek, Malaysia is expanding its palm-oil plantations and setting up biodiesel plants specifically to serve the German market. Fifteen years ago, we were also talking about coconut oil as an additive to diesel fuel. This is not a new technology. During the World War II, many of our motor vehicles ran on coco-diesel. Their exhaust smelled of bukayo, but they were a viable alternative in the face of the petroleum shortage.

Ten to 15 years ago, our lawyer-politicians were also talking about mixing coconut oil to our diesel fuel. This would also have been a boon to our coconut industry and would have provided hundreds of thousands of jobs to our rural poor.

With revitalized sugar and coconut industries, hundreds of thousands, even a couple of millions of rural Filipinos, would have found decent jobs in their home regions and would not have been compelled to migrate to the cities where they just wound up, mostly jobless, in urban slums. Aside from reducing our imports by hundreds of millions of $$$.

But, again, our lawyer-politician leaders did not translate their talk into concrete action and, as far as I know, not one coco-diesel plant ever got built to reduce our dependence on imported diesel fuel.

Newsweek also reports that a new technology has just been developed by a Canadian firm. Using genetically engineered enzymes, it is now possible to convert the cellulose molecules in plants and trees into glucose (the chemical name for sugar), which is then fermented into alcohol.

Cellulose is what gives plants and trees their stiff, fibrous structure. This means that the bagasse waste, after sugar has been squeezed out of the cane, the rice-husks after the palay has been milled, the corn ears after the corn has been shelled, the coconut husks after the coconut meat has been extracted... as well as the rice straws, the corn stalks, the coconut fronds and even ageing coconut trees themselves... can now be treated with this new enzyme and converted into glucose, which is then fermented into alcohol.

According to Newsweek, Germany’s Volkswagen is financing a process to synthesize premium quality diesel oil from the cellulose of trees and plants, and some experimental VWs are already running on this fuel. A commercial facility will be up by 2007. Shell Oil is said to have invested $46 million on a facility that will produce 200,000 tons of ethanol a year from cellulose-derived glucose by 2008.

As a major producer of rice, corn, sugar and coconuts, the Philippines stands to benefit enormously from this new technology, which will be a boon to both our rural and urban economies. Now if we can only get rid of our useless and obnoxious politicians...

The caveat here is that producing ethanol from all sorts of crops, and then burning the ethanol to generate electricity or to power motor vehicles and machines will still result in emissions of carbon dioxide and thus contribute to global warming.

In the medium and long terms, the sane policy is to declare our independence from both the hydrocarbons of petroleum and the cellulose-glucose from various crops as far as our energy requirements are concerned, and for this we have to learn from Iceland.

Iceland is the first and, so far, the only country in the world to make such a declaration. In 2002, the Icelandic government announced a deliberate policy to create a hydrogen economy. (BBC News, Dec. 24, 2001.)

Admittedly, this was relatively easy for Iceland because of its small population (270,000) and abundance of hydro and geothermal resources. But, on a per capita basis, prosperous Iceland is the biggest emitter of greenhouse gases in the world. That is now being changed by converting the engines of the country’s cars, buses, trucks and fishing fleet from gasoline or diesel to fuel cells.

Fuel cells generate electricity by combining hydrogen and oxygen, and the resultant emission is nothing more pollutive than ordinary water, as I have mentioned in several articles, the latest one being “Hydrogen Economy” (Dec. 26, 2004).

The oxygen can be drawn from the air, and the hydrogen can theoretically be extracted from ordinary tap water through electrolysis. In actual experimental units, the hydrogen is often derived from methane gas, so some greenhouse gas emission is still unavoidable.

The electrolysis of water is still very expensive and requires more energy than it can produce through fuel cells. A recent breakthrough using high temperatures from nuclear reactions has been announced but it would probably raise the overall cost of the energy produced to astronomical levels.

In the Icelandic scheme, hydrogen is extracted by electrolysis as a by-product of a 50-year-old industrial process that produces ammonia for fertilizers. In effect, Iceland would be using its cheap hydro and geothermal energy to produce the hydrogen for its fuel cells.

The Philippines, being the second biggest producer of geothermal energy, next only to the US, the government should send a delegation to Iceland to learn how we can also build a hydrogen economy.

But we have to be more action-oriented, rather than talk-oriented. In 1995, I was invited to Los Angeles for a briefing on fuel cells by the corporation that fabricates fuel-cells for NASA’s spaceships.

When my articles on fuel cells came out in my column in the Philippine Star, I received an unsolicited letter from the Department of Energy telling me that an eight-person delegation would be sent to North America to visit the various fabricators of fuel cells. But after that, as in the matter of ethanol and coco-diesel, there was total silence.

It’s so sad that the project was left in the closet by the past administration. President Gloria’s administration has been reviving the plan as of late. Here is a company that heed the call.

Flying V planning big investment in ethanol plant
By MYRNA M. VELASCO

Heeding government’s call for greater participation in the promotion of alternative fuels for the transport sector, independent oil player Flying V is planning to make big investment in an ethanol plant in the next three to five years.

"Right now, we’re looking at ethanol — which is also a government program but that’s on a medium-term," said Flying V president Ramon Villavicencio, noting that they are already at feasibility study stage for the venture.

So far, the company chief executive revealed that they have already steered negotiations with equipment suppliers; as well as undertaken initial assessments of sourcing raw materials and financing.

If ever, Flying V would be adding up to the growing list of companies eyeing to join the government’s ethanol program; which will not only help the country make use of its abundant sugar cane resource; but will likewise generate much-needed foreign exchange savings, especially at this period when oil prices are at peak of their volatilities.

The government’s ethanol program aims to expand the base of usage of alternative fuels for the transport sector; with a legislative piece now being deliberated which will initially mandate a 5.0 percent blend of ethanol to gasoline products; and stepped up later on to 10 percent.

Under the government’s National Fuel Ethanol Program, private entities are encouraged to invest in the production of biofuels and distribution of biofuel blends.

To date, there is only one existing ethanol facility in San Carlos, Negros Occidental, namely the San Carlos Bio-Energy Inc. (SCBI) to develop and operate the facility.

The SCBI integrated facility is reported to have a cane milling plant with a through-put capacity of 1,500 metric tons of cane daily and a co-generation power plant that will have a production of about 9 megawatts. It also has a distillery plant, which will also produce 100,000 liters of bio-ethanol a day.

The other parties which already committed investments in ethanol facilities include British firm Bronzeoak Phils. and Bukidnon Sugar Milling Corp. (BUSCO); for a plant in Bukidnon that is expected to commence commercial operation in the next three years.

The group, it was gathered, are presently conducting feasibility studies for the planned facility. For an ethanol plant with an integrated 25-megawatt power facility, it would require a total investment of roughly P1.5 billion.

Studies have indicated that the country needs roughly 400 million liters of ethanol by 2010; thus, necessitates the setting up of about 20 ethanol distillery plants all over the country by that time.

One of the key challenges the government has to face is to ensure that there is sustained supply; otherwise, the goal of having to source raw materials locally will just be defeated, when in the end, the option will be importation of ethanol blends.

The pending legislative measure is seeking to grant fiscal and non-fiscal incentives and tax breaks to ethanol projects.

Ethanol is a new and renewable fuel which has been exempted from the newly-enacted expanded value added tax (VAT); and is also eyed to be granted with array of incentives as proposed under the Ethanol Bio-Fuel Bill.

Ethanol is an alternative energy resource produced from crops such as corn, grain sorghum, wheat, sugar and other agricultural feedstocks. It can be used as a transportation fuel, as a blend to gasoline, a component of reformulated gasoline, or a primary fuel with gasoline as blend.




US$33-M in oil yield seen in Tanon Strait

CEBU City -- A US-based petroleum investment advisory firm has told one of the energy exploration service contract holders in the country that potential oil reserves in central Tanon Strait between Cebu and Negros Oriental could reach over US$33 million or some P1.8 billion.

Ispyoil, a petroleum investment advisory services firm based in Texas, also noted that explorations for gas deposits in Libertad in Bogo and in Maya in Daanbantayan towns have a 100 percent probability of success.

Ispyoil has been contacted by Forum Energy Corp., a Canadian firm, to evaluate its planned investments in the Philippines.

Forum is one of two firms, the other is Japan Petroleum Exploration Co. Ltd. (Japex), which conducted oil exploration studies in the Tanon Strait.

Forum also found gas deposits in Maya and Libertad in northern Cebu town of Bogo.

According to Ispyoil’s investment report for Forum, the expected value of the Libertad gasfield has an unrisked value of about US$580,000 while that in Maya is US$700,000.

Director Antonio Labios of the Department of Energy (DOE)-Visayas said the result of the oil exploration surveys in the Tanon Strait is still not available.

The Ispyoil report said several wells have been drilled in Maya in 1960s and 1970s but oil reserves did not reach commercial quantities.

In 2003, another drilling was conducted within an area that is known to be oil-bearing.

It said Forum announced gas discovery in October 2003. This was confirmed by Labios.

In the Libertad gas field, Forum discovered over one billion cubic feet of gas in reserves, which can be developed for power generation or production of compressed natural gas.

The Ispyoil report recommended that Forum pursue its planned investment in the country, which includes another service contract (SC) with the Department of Energy in Manila Bay and Central Luzon area.

Forums Cebu exploration projects, under SC 40, is valid for 10 years with a minimum work commitment of US$200,000.

Metro Manila to have natural gas depot by next year, says DOE

The Department of Energy (DOE) will push for the establishment of a compressed natural gas (CNG) depot late next year to ensure supply in Metro Manila, Energy Undersecretary Peter Anthony A. Abaya said, underscoring the need for the facility since no entity so far is interested in making investments in a pipeline which will bring CNG from Batangas to Metro Manila.

Abaya said he will push to get the barges to transport CNG from Batangas to the depot in Metro Manila, and convince investors to put up CNG refilling stations.

"When the CNG refilling stations are in place, the CNG-fired buses will follow," Abaya said.

He admitted that he is uncertain on how much will be spent on the barges, assuring that the investment will not come from the government, but from the private sector. Shipping firms will be the best candidate to haul CNG from Batangas to Manila, he added. Abaya said the depot, on the other hand, will most likely be established one of the major players since Metro Manila is a major market.

Abaya also said that the energy department will still need to assess the logistic situation of the mother and daughter stations in Tabangao in Batangas and Mamplasan in Laguna before planning for the depot and the barges.

Meanwhile, Energy Undersecretary Guillermo R. Balce said the Malampaya consortium, led by Shell Philippines Exploration B.V. (SPEX), has expressed willingness to enter into joint ventures with other firms to develop the estimated 40 million barrels of oil underneath the Malampaya deep-water to gas power project. Balce said Spex is exploring the possibility of joint ventures or farm-in agreements with several companies to extract the oil from Malampaya. The Malampaya oil rim is a 56-meter thick oil zone that occurs right below the 600-meter thick gas cap is produced by Service Contract No. 38 consortium since October 2001 as part of the Malampaya deep-water gas-to-power project.

The oil rim was initially discovered with the drilling of well Malampaya-1 in 1991, but was considered at the onset as a separate development from the much larger natural gas reserves comprising the bulk of the Malampaya petroleum resources.

When extracted, the DOE projects the Malampaya oil could generate proceeds of up to $2 billion to the Philippine economy. "We are exhausting possibility that present contractors undertake the recovery of oil under the existing SC 38 contract. They may ask other companies to farm in. That’s their option which is being explored by several proponents," Balce said.

The Malampaya consortium, led by SPEX, has been saying that the oil from the Malampaya field is "sub-commercial" or unviable for commercial production. SPEX and Chevron-Texaco Malampaya LLC holds 45-percent stake each, while the government through the Philippine National Oil Co.-Exploration Corp. (PNOC-EC) holds 10-percent stake at the Malampaya. Spex also said developing the oil rim may affect the production of the Malampaya natural gas.

Balce said government is exhausting all means to compel the consortium to push through with the development of the oil rim amid high oil prices in the world market.

Balce said the oil rim should be developed middle of next year. The development of the oil rim has drawn strong interest from US-based Argo Group, PetroEnergy Resources Corp. (PERC) and South China Resources Inc. Norwegian firm Norsk Hydro ASA previously expressed interest but decided to withdraw saying it has other priorities, and is instead pushing another Norwegian firm Petroleum Geoservices to develop it.

Norsk Hydro is engaged in the exploration and production of oil and gas, as well as the manufacture and supply of aluminum worldwide. The company has producing fields in Norwegian Continental Shelf, Angola, Canada, Russia and Libya. Norsk Hydro also has exploration activities in other countries, including the United States and Iran. Paul Anthony A. Isla

P149 M Panay-Boracay project to boost WV economy

The Phase I of the National Transmission Corporation's Small Island Submarine Interconnection Development Program being constructed to boost economic potentials in Western Visayas is set to be completed before the year ends.

The SISID or Small Island Submarine Interconnection Development program is a Pl49 Million Panay-Boracay project which will ensure the security of power supply in the country's premiere tourist destination .

This development was learned by the Philippine Information Agency here from the “Dispatch” newsletter of the National Transmission Corporation or TransCo .

TransCo President Alan Ortiz said that with the project approval by the Energy Regulatory Commission of the 69 kilovolt interconnection project, TransCo's commitment to meet the increasing power requirements of Boracay island shall be accomplished .

The MOA between TransCo and the Aklan Electric Cooperative, according to the newsletter, covers the implementation of the SISID program's establishment of a bi-directional electricity highway at the nation's western corridor and eventually complete the Luzon-Visayas Transmission Loop .

The SISID program, a multi-phase transmission project, as envisioned will start at Panay-Boracay, then the Luzon-Mindoro, followed by Mindoro-Semirara Island-Panay; and finally the Boracay-Tablas-Romblon transmission links.

This development program will allow the interconnection of key small islands to maximize their economic potentials . Likewise, the new transmission highway will complement the Leyte-Luzon Interconnection Link in the Eastern corridor and boost TransCo's national fiber optics network which is a necessary ingredient for the success of the whole electricity spot market, the newsletter said. (PIA/T.Villavert)

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Makati goes loco over coco-diesel

Editor's Note: Published on Page A17 of the August 18, 2005 issue of the Philippine Daily Inquirer

JUST when the country faces a fuel crisis due to soaring global oil prices, Makati City tries out a coconut-based alternative fuel that promises to be more cost efficient and environment friendly.

Coco methyl ester (CME) or coco-biodiesel, derived from coconut oil, will be tested for three months on government vehicles and jeepneys in the city.

"This is one thing that was unnecessarily delayed, " said Makati Mayor Jejomar Binay Wednesday.

He added, "For so long, our campaign has been to apprehend smoke-belchers, which is not preventive. [The use of coco-biodiesel] meanwhile is preventive because the gas that will be used will not cause pollution,"

Makati City is the fourth city in the country to adopt the use of coco-biodiesel under the 2-year-old Clean Cities Program of the Department of Energy (DOE), the United States Department of Energy (USDOE), and the United States Agency for International Development (USAID).

The same partnership has introduced biodiesel use in the cities of Marikina, Davao, and Baguio.

"This is a mitigating measure. It addresses our objective of energy independence and fuel diversification," said Clovis Tupas, chief of DOE's Alternative Fuel Division.

Tests on a Mitsubishi L300 van and a passenger jeepney showed that the use of a B1 blend of coco-biodiesel- or diesel with 1 percent CME-decreased the level of blackness in the vehicles' emissions.

Initially, the L300 van was fed with commercial diesel and showed a 3.15 opacity level, below the accepted level of 2.5 under the Clean Air Act.

Opacity is the measurement of the blackness of smoke emitted by vehicles.

After being blended with one percent coco-biodiesel, the van's opacity level went down to 1.72.

Meanwhile, a smoke-belching jeepney was initially found to emit a dangerous 9.07 grade exhaust on the opacimeter. After feeding it with the B1 blend of coco-diesel, its exhaust showed a 5.71 opacity reading.

"The emission level would go down the longer coco-biodiesel is used in a vehicle," said Dean Lao Jr., market development manager of Chemrez Incorporated, one of the two private manufacturers of CME.

He explained, "It is like purging or cleaning up the exhaust."

Coco-biodiesel currently has three blends, depending on the amount of CME mixed with diesel.

The B1 variety is a one percent blend, the stronger B10 has 10 percent blend. A B100 meanwhile is pure coco-biodiesel.

These are available in select gasoline stations in Metro Manila and some provinces.

For immediate results, Lao suggested that a first-time user initially fill up with the B10 blend.

Later, when the engine is already "clean," he may start using the B1 blend.

But there is a downside.

The B1 blend, now available in five Flying V gasoline stations in Metro Manila and select Seaoil stations, costs about P65 per liter, or more than double the current price of diesel which ranges from P29.40 to P31.

A B100, now available in one-liter bottles in some 192 gasoline stations and 110 direct selling outlets of manufacturing firms, sells at more than P120 per liter. About 10 coconuts would be necessary to make a liter of B100.

But, Lao said, the use of CME would be more cost-efficient for motorists, as it would give vehicles better mileage by a "conservative estimate" of 10 percent.

For instance, vehicles could add 50 kilometers more to the average 500 km mileage on a full tank of commercial diesel, if they ran on B1 blend. This would translate to roughly P85 in savings on fuel costs.

As he welcomed the fuel alternative, Binay sought the guarantee of sustainable distribution of CME products.

"Hopefully the government could study the use of coco-biodiesel so it will become viable, successful, and acceptable... not a haphazard implementation. There must be stable supply, and the prices must not be too high," said Binay.

The Philippine Coconut Authority said the country, which currently produces 70 million liters of B1 per year, has a sustainable capacity to produce coco-biodiesel. Chemrez, for instance, would increase production next year.

P5.26-B worth of investments in oil/gas exploration firmed up
By MYRNA M. VELASCO

Adding up all the commitments for oil and gas exploration ventures that were firmed up within the year, the Department of Energy (DoE) reported that it cornered P5.26-billion (roughly $94 million) worth of investments for the six petroleum service contracts already signed.

These covered the development and exploration for oil and gas resources in West Palawan, Northwest Palawan, Mindoro-Cuyo basin, East Visayan Basin and Pita-San Jose, Northern Cagayan Valley and Sulu Sea.

"It is our hope that from these new service petroleum service contracts we will be able to discover large oil and gas fields of commercial quantity," the department said in a statement given to media.

In general, the contracts cover a seven-year exploration period with the first two years of the work program devoted to conducting geological and geophysical studies and drilling of one exploration well.

The latest contract awarded was the consortium of Australia’s BHP Billiton Petroleum PTY Ltd., Amerada Hess Ltd., Unocal Sulu Ltd. and Sandakan Oil II, LLC for an oil and gas exploration venture within offshore Sulu sea.

Their contract (SC 56) area covers 8,620 hectares offshore Sulu Sea, considered among the high-frontier areas for oil and gas exploration as indicated by the previous drilling activities already conducted in the area.

The DoE claimed that the consortium committed some $43.85 million which includes the conduct of comprehensive geological and geophysical studies and the drilling of four exploration wells.

Meanwhile, another consortium of Alcorn Gold Resources Corp., TransAsia Oil and Energy Development Corp. and PetroEnergy Resources Corp. was awarded the contract over the East Visayan basin (Service Contract 51) covering 440,000 hectares.

It was stressed that several studies have already been made in the area including the initial discovery of Villaba-1 gas field offshore Northwest Leyte; and the company is expected to invest some US$3.7 million to the project.

E.F. Durkee and Associates, on the other hand, was awarded the contract over Piat-San Jose, Northern Cagayan Valley (SC 52) covering 96,000 hectares and will be investing $5.2 million. The prospect is located within Cagayan basin which hosts the San Antonio Gas Field operated by the Philippine National Oil Co.- Exploration Corp (PNOC-EC).

The other firm pouring in investment is India’s Laxmi Organic Industries Ltd., which is eyeing to explore for oil and gas resources in Mindoro-Cuyo basin; for a contract covering 600,000 hectares.

Laxmi Organic’s investment in the country’s upstream petroleum industry, committing some $5-million minimum financial investments, is part of the company’s recent move to direct efforts in the exploration and energy business.

Another company Nido Petroleum Phils. Ltd. was awarded service contract in Northwest Palawan (SC 54) covering 537,616 hectares; and will plow investment of $24.4 million for four wells to be drilled.



Philippines sees bright future with renewable energy sources
By SHERRY SU

SINGAPORE (Dow Jones) — The Philippines aims to become the world’s leading producer of geothermal energy, Southeast Asia’s top wind power generator and a hub for solar power equipment manufacturing, a senior government minister said Thursday.

The target is to double renewable energy capacity by 2013 in a bid to counter rising international oil prices, Energy Secretary Raphael Lotilla told Dow Jones Newswires in a written interview.

His remarks came the day after the Philippines announced it is considering radical measures to cope with the country’s soaring oil import bill, including cutting working hours, introducing fuel rationing and limiting the use of private and public motor transport.

In 2013, the total capacity of renewable energy in the Philippines will have been increased to 9,148 megawatts from current 4,450 MW, which will help to offset the massive spending required for imported oil, he said.

The Philippines, which has to very limited domestic oil reserves, imported 126 million barrels of oil in 2004, accounting for 38 percent of its energy needs.

With crude futures trading well above $60 a barrel, the country is struggling to pay the bill.

"For every $10 a barrel increase in oil prices, we need an additional US$1.26 billion to finance our (annual) oil imports," Lotilla said.

To reduce its dependence on imported oil, the government hopes to further increase the ratio of indigenous energy resources, especially renewable energy, he added.

Currently, renewable energy generation accounts for a substantial 33 percent of the country’s primary energy mix, with 18 percent of this held by the geothermal sector and 15 percent by hydropower, Lotilla said.

Geothermal power is electricity produced by tapping steam, hot water or heat reaching the earth’s surface from deep underground.

"As defined under the Department’s Renewable Energy Policy Framework, it is our goal, for the next ten years, to become the number one geothermal energy producer in the world and the leading wind energy producer in Southeast Asia," he said.

"And we also hope to become the regional solar manufacturing hub, and double hydropower capacity," he added.

The Philippines, though lacking rich hydrocarbon reserves, owns abundant geothermal, wind, solar, biomass and water resources.

The country is already the world’s second largest user of geothermal energy for power generation, feeding 11 power plants with a total installed capacity of 1,932 MW, he said.

"We hope to raise the capacity to 3,132 MW in 2013," he said.

Hydropower is another sector being focused on. The Philippines now has 21 large hydropower stations, 52 mini-hydro power stations and 61 micro-hydro power facilities, with a total capacity of 2,518 MW, Lotilla added.

The government’s goal is to double that capacity to 5,468 MW in 2013, he said.

There were numerous difficulties to be tackled in developing renewable energy, Lotilla noted.

"One concern is the difficulties in accessing traditional financing for renewable energy development."

Often problematic were high upfront cost as well as additional costs caused by linking up with existing grids, as renewable energy resources are "site-specific."

"Also, we still need to gain more knowledge on renewable energy market condition and appropriate delivery mechanisms," he added.

The government is working closely with Congress in order to pass a renewable energy bill into law.

"The proposed bill aims to accelerate the development and utilization of renewable energies through the provision of comprehensive fiscal and non-fiscal incentives to renewable energy developers," he said.

One of the measures planned is to oblige all power generating companies to source a certain percentage of their power supply from renewable energy sources, he said.

Increased dependence on renewable and indigenous energy sources would of course help bring down the country’s import bill.

"Our goal is to reduce dependence on imported oil to 28 percent in 2010 from the present 37.91 percent and thereby yield considerable foreign exchange savings for the government," the minister said.

Arroyo urges stronger geothermal program

President Arroyo inspected on Saturday the Makiling-Banahaw geothermal plant in Laguna as she pressed the government’s program to tap renewable energy to ease the impact of soaring oil prices on the country’s economy.

To save fuel, Mrs. Arroyo chose to travel by land instead of using the presidential helicopter from Manila to Barangay Bitin in Bay, Laguna, -- a two-and-a-half-hour ride -- with a pared down security convoy.

Upon arrival at the Makiling-Banahaw plant complex, she was briefed by Energy Secretary Raphael Lotilla; Napocor president, Cyril del Callar; and plant manager Virgilio Navarro on the ongoing rehabilitation of Plant B of the geothermal complex.

The $5-million rehabilitation project will increase the power generation capacity of the plant from 370 megawatts to 402 MW, or an additional 32 MW by January 2006.

The rehabilitation project, which started in October 2002, will be completed in November this year.

Last year construction of 10 bigger production wells generating from eight to 10 MW were completed, Navarro said.

Del Callar said that the operation of the 10 new wells further reduced Napocor’s dependence on oil in the operation of its facilities.

Mrs. Arroyo said the initial beneficiaries of increased geothermal production would be the big power users: the industrial and commercial sectors.

"This would mean lower power price in Luzon, more jobs. We are assured that prices of commodities will not increase drastically [despite the increase in oil prices]," she added.

The geothermal reservation lies between volcanoes: Mount Makiling in the east and Mount Banahaw on the west.

The recent geothermal development program is concentrated in the Mount Bulalo southeast of Mount Makiling, which straddles the towns of Bay and Calauan in Laguna and Santo Tomas in Batangas.

"So, there is more area to drill," the President said, when informed that the Makiling-Banahaw geothermal reservation, established through Presidential Decree 1111, is composed of 162,000 hectares in a parcel of land straddling the provinces of Laguna, Batangas and Quezon.

The government is pushing the development and exploration of indigenous and renewable sources of energy, including geothermal energy, in a move to lessen the country’s dependence on imported oil.

DoE eyes expansion of power plants

To at least save on the daunting task of securing project sites, the Department of Energy (DoE) is banking on planned capacity expansion of existing power facilities and projects already at advanced stages of implementation so the industry would be able to fend off feared nearterm supply shortages.

"Right now, we are trying to promote more judicious operations of power plants, so we can stretch supply…and that is coupled with approach on demand side management so power usage can be distributed more efficiently and be able to bring down peak demand level," said Energy undersecretary Melinda L. Ocampo.

The energy department is also at the thick of revising the country’s power development program; eyeing some downscaling in projected demand because of slower economic growths.

Ocampo noted that they are getting inputs from stakeholders; primarily the distribution utilities; and also from the independent power producers in revisiting the country’s power development blueprint.

She has stressed while they are staunchly promoting energy conservation; this has to be done with balance, so that economic activity and productivity would not be compromised.

But investors said their concerns are way beyond site provisions for projects, noting that what makes the investment climate more depressing and problematic are the regulatory framework and the lack of political will of the energy officials to squarely face the problem of a looming power crisis; with more interest thrown into "quick fixes."

Similarly, the energy department noted that it wants to promote energy-efficient operation of power plants; as this will not only help in bids to conserve energy; but will also be beneficial to end-consumers by not having to shoulder any additional costs that may be tacked on to power rates because of inefficiencies in the course of generating the electricity eventually wheeled to their businesses or houses by their power suppliers. This can be achieved it was noted, by the adoption of efficient technology and in ensuring some important aspects in the business, such as fuel availability, among others.

Currently certified as energy-efficient power facilities, according to the DoE are Duracom Mobile Power II, Panay Power Corporation, NPC Power Barge 105, Bauang Private Power Corporation, San Lorenzo Combined Cycle Power Plant, Sta. Rita Combined Cycle Power Plant, Southern Mindanao Power Corporation and Mirant Pagbilao Power Station. (MMV)

For future power projects, investors opined that technology choice would actually have a big weight in their investment decisions; because this will determine their capital costs and the level of risks they will face.

The International Energy Agency (IEA), in its Risk and Power Generation Investment Publication, emphasized that it would be particularly difficult to assess viability of future power projects and the pricing trends; especially given current volatilities in fuel prices (i.e.oil, gas and coal prices).

For instance, in terms of technology application, the IEA stressed that the current market preference is directed on gas-fired facility or combined cycle gas turbine technology for baseload power generation; because of perceived low capital costs; as compared to coal which requires high capital cost to keep up with technology advancements so it could comply with mandated emission standards.

But it cautioned that there is a need to balance gas fuel costs here because the uncertainty in its prices, if the power generator has to rely on spot market, would spark unprecedented price volatilities.

"Gas-fired technologies have characteristics that should be favorable because they have relatively low capital cost, short lead time, standardized design and for some technologies, flexibility in operation provide significant advantages to investors," the IEA pointed out, noting further that "coal power projects have tended to be more capital intensive to take advantage of the economies of scale, to meet tighter environmental standards more economically, and to improve fuel efficiency."

Nuclear-fired plants though widely presumed to be a cheaper option, is certainly not a part of the equation as far as the Philippine power industry is concerned. Meanwhile, renewable energy sources, such as solar, wind and biomass, as the ones aggressively promoted by the DoE, cannot certainly thrive as the answer to the country’s thinning power reserves. Aside from the fact that they are very capital-intensive, they can’t also be built on a baseload capacity, however, they are merited as good alternative for the long-term and in promoting the country’s energy self-sufficiency.

Oil plants, which can be taken off-the-shelf because of short gestation period, are similarly bordering on the dangerous side because of the drastic climbs in world oil prices; and their utilization is also widely discouraged in consideration of the environment. (MMV)




PSALM resets sale timetable on 70% genco assets to 2006
By MYRNA M. VELASCO

Finally, the Power Sector Assets and Liabilities Management Corporation (PSALM) admitted that the privatization of the spinoff generation companies of National Power Corporation (NPC) will suffer delays, as it moves target of achieving 70 percent of the assets’ privatization by the first quarter of 2006, several months behind the original target of December 2005.

"We are hoping to achieve 70 percent privatization of NPC’s generating capacity until March 2006," stressed PSALM President Nieves L. Osorio adding that a revised schedule is now under review.

This, however, comes with an admission that it remains a tough task for them meeting the target; noting that they would have to undertake and address several concerns so they could get investors’ interests to bid for the assets.

Osorio reiterated that such level of privatization is crucial because this is the turning point for the introduction of open access in the industry; which most of the stakeholders are keeping a close eye on, with the aim that this will bring in competition and pulls the domestic power sector into full-blown deregulation and restructuring.

As laid down under the law, open access will open the supply side of the electricity business to competition with customers having at least 1.0 megawatt of peak demand given the choice on their preferred electricity providers.

As many in the industry are already resigned to the idea that there’s nothing that can be done at this point to push amendments in the Electric Power Industry Reform Act (EPIRA) because of Congress’ fixation on other matters, PSALM said they would try to keep up with targets and privatization time frames; by focusing most of their attention on fixing the investment environment and trying to set closer coordination with the investing community.

"We would take all efforts so open access can be achieved…if 70 percent eventually proves an ultimately difficult hurdle, then we still want to look for other ways on how we can maximize industry competition," the PSALM chief executive has noted.

At this point, she disclosed that they have been batting that the reference on "generating capacity" be re-defined; given related factors, such as plant retirements; and if the decommissioned plants should still be treated as part of the 70 percent requirement.

"We want to be cleared on what should be considered a generating capacity because that will determine on how far we should go in achieving that 70 percent privatization mandate," she explained.

The growing argument is that, open access cannot be introduced in the market without expanding the base of competition in the industry; and one way to do it is pursue substantial divestment to private takers of the NPC generation plants.

Aside from the gencos, PSALM also faces the hurdle of privatizing at least 70 percent of its contracts with independent power producers; and this was set to be undertaken by tapping IPP administrators which would package the sale of the contracted capacities; including that with the Wholesale Electricity Spot Market.

Meanwhile, Osorio intimated that the estimated $2.3 billion proceeds from the sale of the NPC generation facilities had not been changed to date.

In tandem with the gencos’ disposal, PSALM is likewise scheduling the rebidding on the 25-year concession contract for the National Transmission Corporation by first quarter next year.



Gov’t eyes P15.6-B savings from use of CME fuel
By MYRNA M. VELASCO

The government is eyeing substantial savings of roughly P15.6 billion annually if the local transport sector goes full-blast in tapping coco methyl ester (CME) as alternative fuel even at the current blend of 1.0 percent to diesel products.

Based on estimates set out by the Department of Energy (DoE), if every diesel vehicle in the country increases mileage by 10 percent with CME, diesel consumption is expected to be slashed by as much 9.09 percent.

Taking it from the country’s annual diesel demand of 6.6 billion liters, the consumption cut of 9.9 percent will account for around 600 million liters in foregone diesel imports on an annual basis.

And if computation would have to be based on prevailing pump prices of diesel at average P26 per liter, exclusive of freight and other costs, import savings from mileage efficiency is seen summing up to P15.6 billion.

"In addition, the use of CME will result in longer maintenance intervals and avoid apprehension from smoke belching violations," the energy department said.

Energy Secretary Raphael P.M. Lotilla noted that with the rapid depletion of supply and high demand for oil resulting to unstable petroleum product prices, there is no other recourse but to develop indigenous energy supplies; and a key component of this policy would be to expand the use of biodiesel, primarily in the transport sector.

The other listed benefit of coco-biodiesel is potential revenues that would come from carbon credit trading under the Kyoto Protocol Clean Development Mechanism.

Bio-diesel is officially recognized in the Kyoto Protocol to reduce carbon dioxide (CO2) emissions at approximately 3.02 kilogram (kg) per liter.

Simulations would show that 66 million liters of coco-biodiesel is equivalent to 199 million kg of CO2 credit, which is approximately 199,000 metric tons, or a potential revenue value of US$3.98 million (at $20 per ton of CO2 credit).

In the domestic transport sector, coco-biodiesel is currently used as alternative transportation fuel; and government vehicles are actually mandated to use it at 1.0 percent blend; and plans are being considered to step it up to 5.0 percent.

At the same time, the DoE noted that the government is exploring the possibility of expanding the use of coco bio-diesel as supplement to existing traditional fuels in the generation of electricity.

It was reported that the National Power Corporation (NPC) recently committed to use coco-biodiesel in its power barge in Romblon on a trial basis.

"If this succeeds, then coco-biodiesel becomes a viable option in the government’s ultimate goal of lighting up the countryside," the energy department averred.

Aside from coconut oil, the DoE is likewise exploring other plant oils as potential feedstock for the manufacture of diodiesel; such as the "tuba tuba", also known as jatropha curcas, and hanga.

DoE set to bare commercial viability of gas find in Cebu
By MARS W. MOSQUEDA JR.

BOGO, Cebu — Another milestone in the history of the country’s oil and gas exploration is set to unfold as the Department of Energy (DoE) is scheduled to officially declare the commercial availability of a natural gas deposit discovered in Barangay Libertad, this town.

The discovery of the natural gas in commercial quantity in this quiet town north of Cebu City came years after the start of the commercial operation of the Malampaya natural gas in Palawan, Energy Undersecretary Guillermo Balce said.

"It is a milestone especially with respect to the active exploration and investments in oil exploration in the country," he said in an interview.

Balce confirmed yesterday reports on the commercial availability of the natural gas find, and that this will be announced soon. He did not give the exact date when the declaration of commerciality will be signed.

However, Region 7 DoE Director Antonio Lavios said earlier that the signing was initially set this coming Friday at the Libertad gas well in Barangay Libertad.

The declaration is expected to generate great effects especially on Bogo and the neighboring municipalities because Forum Exploration Inc., which started the Libertad gas project, will soon be building a gas-fired power plant that would supply power to the town and neighboring areas, Balce said.

Forum Exploration had drilled at least five exploratory wells in the area between 1994 and 1995. About eight to nine million cubic feet of natural gas reportedly flowed during the testing operations.

DoE said the Libertad gas well contains over one billion cubic feet of gas in reserves, which could be developed for power generation or production of compressed natural gas.

Bogo Mayor Celestino Martinez III, Congresswoman Martinez’ son, welcomed this development, saying, "it’s going to be good for the town."

"Hopefully, we can attract more investors to come in because of our cheaper power," the mayor said. "This is a first in Cebu."

Forum Exploration is one of two firms (the other is Japan Petroleum Exploration Co. Ltd. or Japex) that also conducted oil exploration in the Tañon Strait.

Aside from natural gas, DoE Undersecretary Balce said he had predicted that the Tañon Strait will soon produce at least 300,000 barrels of oil a day or 100 million barrels in a month.

Overall, the DoE estimates that at least one billion barrels of oil will be tapped from the Strait.

Really not a lot but better than nothing!

Kamote, etc. gagawing gas!

Ang Pilipino STAR Ngayon 08/23/2005

Isinulong kahapon sa Kamara ang isang panukala na gamitin ang kamote, mais, kamoteng-kahoy at niyog bilang alternatibong pamalit sa gasolina lalo ngayong patuloy sa pagtaas ang presyo ng mga produktong petrolyo.

Nakatakdang pagdebatihan ng mga mambabatas ang Biofuel bill kung saan kasama sa gagawing biofuel na pamalit sa gasolina ang apat na nabanggit na produktong agrikultura.

"The old Filipino problem-saving adage of use ‘your coconut’ could apply on the oil crisis as well," ani Bukidnon Rep. Juan Miguel Zubiri na author ng panukala.

Idinagdag pa ni Rep. Zubiri, madaling itanim ang nasabing mga produkto kaya’t maraming Biofuel ang makukuha sa mga ito.

Inihalimbawa pa ni Zubiri ang China na itinuturing na may pinakamalaking ‘fuel ethanol plant’ sa buong mundo at nag-eksperimento na rin sa paggamit ng kamote at cassava bilang alternatibong gasolina.

"Next time you tell a man, ‘go home and plant camote’, you could be talking to the next Filipino sheik," dagdag pa ni Zubiri.

Ang Estados Unidos, aniya, sa kasalukuyan ay nakakapag-produce ng 10 bilyong litro ng Biofuels taun-taon na karamihan ay nagmula sa mais.

Sinabi pa ni Zubiri, sa ngayon ang sikat na lambanog na isang uri ng alak ay dapat nang pag-aralan para magamit sa mga sasakyan.

Ang biofuels ay maaaring ihalo sa regular na gasolina o 100 percent fuel para sa mga sasakyan. (Ulat ni Malou Rongalerios)
________________________________________

Talk about methane gas. :fart:

Aboitiz mulls P5B-P6B outlay for power projects

Aboitiz Equity Ventures, Inc. (AEV) is considering spending P5 billion to P6 billion for power plants depending on the privatization of National Power Corp. (Napocor) assets.

Erramon I. Aboitiz, AEV chief operating officer, said the listed company would like to build its power generation business. "[That’s] our capital expenditure over the next two to three years, depending on the privatization goes; we’ll probably be putting about P5 billion to P6 billion," he said.

"We are hoping they will accelerate it. We are quite anxious to go ahead. We have reported before we are developing some hydro power project in Davao that will basically serve the whole area there. We expect shortage of power by 2008 to 2009. We are developing that."

AEV will build three to four plants in Visayas and Mindanao as it anticipates a tightening in the region’s power situation.

An official said AEV has initiated the development of various greenfield projects worth $300 million to $500 million to ensure continued supply of power to utilities in Davao and Cebu.

"We need to develop our own generation and supply to serve our utilities. We have been talking with different parties on providing generation both hydro and coal. Keep in mind, in Mindanao, you can have hydro because there is water. In Cebu, you have no other choice. It has to be coal. Diesel is very expensive," Jon Ramon M. Aboitiz, president and chief executive, said earlier.

AEV is looking at two hydro plants with total capacity of 76 megawatts (MW) in Davao. Construction will start by early next year. In Cebu, AEV will participate in a 200-MW coal-fired plant expected to break ground by yearend.

Expecting large capital investments in the coming years, AEV has approved the sale of all its treasury shares and some of its subsidiaries amounting to 890 million shares, representing 15.6% of the company’s stock.

"No fixed timetable was set for the sale of the treasury shares and would be dependent on the company’s capital needs moving forward. We purchased these shares in the late 1990s when the stock was trading at depressed prices. Aside from bringing in capital to fund our investment program, we think the release of these shares will enhance shareholder value by increasing the liquidity and trading of its share by increasing its free float," Mr. Aboitiz said. -- Ruby Anne M. Rubio

Oil companies offer alternative fuel

Oil companies Seaoil Philippines Inc., Eastern Petroleum Corp. and Filpride Energy Corp. will start selling their first set of alternative fuel called E10.

These companies announced over the weekend that they will begin selling E10 immediately in view of rising world oil prices. E10 refers to the 10-percent blend of ethanol into 90-percent gasoline.

The oil companies said their move responds to government’s call for investments in the production of bio-fuels and distribution of bio-fuel blends.

Stakeholders in the ethanol industry expect believe that the concentration of ethanol will be increased and commercially used in the next few years. They didn’t identify the year.

Ethanol is an alternative energy resource produced from crops such as corn, grain sorghum, wheat, sugar cane and other agricultural feedstock. The small level oil companies said Ethanol is an environment-friendly fuel because it is biodegradable and decreases greenhouse gas effect by 19 percent, carbon monoxide by 30 percent and toxic emissions by 22 percent.

Ethanol is also found to further improve the engine performance of cars as it boosts the octane rating of gasoline and promotes better combustion, the companies claim.

Ethanol-blended fuels have been accepted since the 1980s, in which leading car manufacturers worldwide have given their approval to the use of 10-percent blend to their engines, recognizing the positive benefits of ethanol.

The sale of 10, however, are only on select pumping stations in Metro Manila of Seaoil, Eastern Petroleum and USA 88 of Filprice. Seaoil has a total of 105 retail stations nationwide while Filpride has eight USA 88 gasoline stations. Eastern Petroleum has around 32 gasoline stations, and is looking at increasing number of stations to 40 by year-end.

Based on studies, the government stands to generate foreign currency savings of $2.9 million to $7.9 million by 2008 as a result of 10-percent ethanol substitution from the projected gasoline demand.

The government’s ethanol program aims to intensify the use of bio-fuels in the transport sector by blending a minimum of five-percent ethanol fuel into all gasoline-fed motor vehicles.

President Arroyo has underscored the importance of ethanol as an alternative renewable motor fuel source, even before world oil prices hit US$68 a barrel. Paul Anthony A. Isla

^^ kaso sa selected pumping stations lan sa MM. but anyways, at least there is one alternative.

Monday, August 29, 2005
Maramag-Bukidnon transmission line to be completed in 2007

DAVAO City Chamber of Commerce and Industry, Inc. (DCCCII) president Lawyer Bienvenido Cariaga has announced the topographical survey of the Maramag-Bunawan 230 kilo volts (kV) transmission line has already been started.

The construction of the Maramag (Bukidnon) to Bunawan (Davao City) 230kV transmission line is one of the priority projects of the National Transmission Corporation (Transco).

The construction of this line will enable Transco to transmit power from Northern Mindanao, where most of the generating power plants are located, to Southern Mindanao, including Davao City.

Recognizing the critical importance of this line to Southern Mindanao, DCCCII has, since 2003, been strongly advocating for the early completion of this line.

Cariaga said that the construction of the transmission line would be completed by the end of 2007.

"Right now, Transco is also making a plan on acquiring the private properties that are affected by the construction of the Maramag-Pulangiu transmission line. With the oil price increases na nangyayari ngayon, mas tataas pa ang presyo ng electricity natin dito sa Southern Mindanao kasi magiging totally dependent tayo sa oil in generating elecetricity. Whereas kung nandyan na ang Maramag-Pulangui transmission line, pwede na nating gamitin ang Maria Cristina falls para maka-generate ng electricity for the Southern Mindanao area," he said.

Early this month, the US$42 million budget for the said project has been approved. (JMM)

SeaOil has released a new product: Oil mixed with 10% ethanol. Now, how much would that be per liter? Lets see :)

Monday, August 29, 2005
Ethanol plant to benefit Davao, Bukidnon: Zubiri

THE program of government to build ethanol plants in the next two to three years in order to meet the target of having a 10-percent blend of ethanol in gasoline products will benefit the provinces of Davao del Sur and Bukidnon.

This was bared by Representative Juan Miguel Zubiri, vice chair of the House committee on natural resources, in a dialogue with media practitioners attending the First Minsupala Media Summit.

Zubiri said at least 25 ethanol plants would be put up in order for the Philippines to meet the targeted ethanol-gasoline mix.

Davao del Sur and Bukidnon could host two ethanol plants because of the existence of sugar centrals in these areas, he said.

The lawmaker said some P37 billion in investments will be needed for the building of the ethanol plants.

He said that under the updated Philippine Energy Plan of the Department of Energy, all local oil firms would be required to sell gasoline blended with at last 10 percent of ehtnaol in the service stations by 2007.

Oil firms should be selling gasoline with at least 25 percent ethanol by 2010.

Zubiri is also pushing for the approval of the Biofuels Bill to encourage investments in the country's biofuel industry.

The bill, to be approved next month, seeks exemption for biofuel producers from paying tariffs and duties on their importation of all typs of inputs and machinery that would be used in their projects.

During the forum, Zubiri, one of the so-called "Spice Boys" in Congress, also dwelt lengthily on his advocacy for a shift of the country's form of government to federalism, enumerating many advantages of such a form. (AMA)

I heard in the radio news earlier that there's a big possibility that the oil price in the world market would reach US$70 per barrel. and I think I heard it right kahit bagong gising lan ako. waahhh!!! kelangan na talagang humanap ng alternatives kundi, kawawa na talaga tau.

The ethanol fuel is said to be .65 to .70 cheaper per liter than regular gasoline. I just hope the government is checking that it's really 10% ethanol and 90% gas. As more than 10% ethanol will damage your car's engine. I don't know if the car manufacturer will honor the warranty if this happens.

I heard in the radio news earlier that there's a big possibility that the oil price in the world market would reach US$70 per barrel. and I think I heard it right kahit bagong gising lan ako. waahhh!!! kelangan na talagang humanap ng alternatives kundi, kawawa na talaga tau.

Actually it reached $70 in NY stock Market coz of the Hurricane Katrina disrupting oil prudution in gulf of mexico. But i dont think we are that affected coz we base our oil prices at dubai oil trading prices.

I heard in the radio news earlier that there's a big possibility that the oil price in the world market would reach US$70 per barrel. and I think I heard it right kahit bagong gising lan ako. waahhh!!! kelangan na talagang humanap ng alternatives kundi, kawawa na talaga tau.

Actually it reached $70 in NY stock Market coz of the Hurricane Katrina disrupting oil prudution in gulf of mexico. But i dont think we are that affected coz we base our oil prices at dubai oil trading prices. Our government better find not only alternative but renewable fuel source soon...coz this oil price hikes is not gonna abate anymore. The only way is up, especially alot of economy in the world are maturing and becoming industrialized which are very hungry for oil.

Check out the Air Car Thread I posted...
Heres the link to the thread... (http://www.skyscrapercity.com/showthread.php?t=250650)
this are the type of technologies we should be looking at now. Mexican Government has already signed an agreement with the MAnufaturers for 40,000 fleets of Air Car Taxi version to replace their taxi fleets in Mexico City. Its high-time our government do so too.

ok. I saw it yesterday but wasn't able to finish reading it. thanks.

New power plant for Oriental Mindoro


CALAPAN: The new independent power producer in Oriental Mindoro adviced Tuesday the National Power Corp. (Napocor) and the local electric cooperative that it is ready to operate its first 5.5-megawatt power plant.

Power One Corp., the new IPP, also announced that it expects to operate its second 3.5-megawatt (MW) engine by early September. By year-end, the firm expects to provide 9 MW of electric power to solve recurring power outages and brownouts that have been adversely affecting the province’s economy and households since June 2004.

Power One Corp. and its project company, Mid-Islands Power Generation, took over the old Napocor diesel power plant in April this year and undertook a P100-million rehabilitation and upgrading project to raise the plant to its full capacity of 9 MW.

In its letter, Power One said they can initially produce 2.5 million kilowatt-hours (kWh) of electricity that will increase to 4 million kWh by November in time to meet the expected extra load of the province in December.

The plant’s power generation is not only a boon to local businesses and consumers but more significantly, it will reduce Napocor’s losses on the island by some P240 million a year.

Napocor, under its new president Cyril del Callar, has been aggressively pushing for the privatization of power generation on 14 priority islands to save about P2.5 billion a year in subsidies on isolated islands not connected to national transmission grid.

Napocor generates 25 MW of power in Oriental Mindoro through leased generators that it is targeting for phase out by May 2006.

SEPTEMBER 5, 2005

INDUSTRIES

Maybe In My Backyard
High fuel prices and global warming are making nukes an easier sell

Hobbled by images of Three Mile Island and Chernobyl, staggering costs, and opposition from enviros and politicos, nuclear power once seemed destined to go the way of the dodo. "Just five years ago, utility executives were saying they wouldn't be caught dead even talking about a new plant," recalls Massachusetts Institute of Technology nuclear engineer Andrew C. Kadak. U.S. utilities were shutting reactors, and Germany planned to pull the plug on its facilities.

Today, nukes are on the verge of a global comeback. A new plant is under construction in Finland, the first in Europe since 1991. France, which already has 58 plants, says it will build 30 more. China plans to spend $50 billion on atomic energy construction by 2020. In the U.S., where 103 existing reactors have become cash cows, a dozen companies are seriously considering building new plants. And the energy bill signed by President George W. Bush on Aug. 8 has billions of dollars in subsidies. "Things have never looked better," says Dan R. Keuter, vice-president for business development at Entergy Nuclear (ETR ) in New Orleans.

What's fueling this resurgence? In a word, economics. Rising natural gas and coal prices are starting to make nukes look inexpensive. Another factor is global warming. Not only do new restrictions on emissions of carbon dioxide increase the costs of fossil fuel-generated electricity, fears of climate change have softened opposition among some enviros. While the government must still solve problems of waste and security, says Steve Cochran of Environmental Defense, "given the challenge of climate change, the world needs to be open to every low carbon initiative -- including nuclear power."

Construction in the U.S. won't start tomorrow, however. There are still major uncertainties. Natural gas prices must stay high to make nukes economical. With increasing imports of liquefied natural gas, that's not a sure thing. Utilities must also convince Wall Street that the long delays and huge cost overruns that doomed N-power in the 1980s won't happen again.

As a result, companies say they won't order a new plant until they are sure they can get a license from the Nuclear Regulatory Commission, a process expected to take four to five years. "At the very earliest, we are looking at construction starting around 2010," says Adrian Heymer, director of new plants deployment at the Nuclear Energy Institute. Since construction would take four to five years, electrons from the new nukes couldn't start flowing until 2014 or 2015 at the soonest.

It could be longer than that. John W. Rowe, chairman and CEO of Exelon Corp. (EXC ), believes that a new generation of reactors is essential. But even though Chicago-based Exelon is the nation's biggest nuclear utility, with 17 reactors, Rowe says the risks are still too great to order new plants now. "While the stars and moons are moving in the right direction, they're not there yet for us," he says.

FRUSTRATION FACTOR
The lack of immediate action frustrates Washington politicians, who crafted energy legislation that, among other things, was designed to make nukes nice again. The bill offers government loan guarantees so that banks won't demand a risk premium when financing new reactors, and a production tax credit. It also provides up to $2 billion to cover costs associated with regulatory delays. That's on top of changes Congress made to the licensing process in 1992. "For anyone who says there is still too much regulatory uncertainty, I have to question how serious they are," says one Senate staffer. Congress has "piled yet one more security blanket on the pile of blankets," he says.

Industry execs insist that new plants will be built, but say they are getting there one step at a time. "No one would make a decision to order a plant now," explains Michael J. Wallace, executive vice-president of Constellation Energy Group. The Baltimore utility and others, however, are already partway there. Entergy, Exelon, and Dominion have filed applications with the NRC to get three sites licensed for new reactors. Reactor makers Westinghouse, General Electric (GE ), and Areva, which is building the Finland plant, have filed or will soon file applications to get new designs certified by the agency. A group of eight U.S. power companies, called NuStart Energy Development, is working on applications for construction and operating licenses for the GE and Westinghouse designs.

Meanwhile, the public has become more accepting. The percentage of Americans who favor nuclear power jumped from 46% in 1995 to 70% in May, 2005, according to Bisconti Research. Some communities are actually backing new plants. In Calvert County, Md., where Constellation Energy has proposed adding a new reactor to an existing facility, "we are doing everything we can to see that kind of investment made in the county," says David Hale, president of the county board of commissioners.

There have also been technological improvements. The basic approach hasn't changed, but new designs are easier to build and operate -- and better able to handle problems. They are "more safe by an order of magnitude," says MIT's Kadak. The industry expects progress on the waste front as well. New radiation exposure limits proposed by the Environmental Protection Agency for the Yucca Mountain repository in Nevada in early August could pave the way for the facility to eventually accept waste.

Add it up, and nukes no longer look like dodos. "What we are seeing is an economic change that is beginning to overwhelm the construction and licensing risks," says Thomas A. Christopher, CEO of Framatome ANP Inc., a unit of France's Areva. A new 1,000-MW plant is expected to cost at least $1.5 billion. That compares with $1.2 billion for a new coal plant or $500 million for a gas-fired facility, which is quicker to build. But utilities have learned to run reactors more efficiently, making existing nukes cheap producers of power.

Now they figure that with natural gas prices tripling and coal prices doubling over the past five years, new nuke plants will be gold mines. "What we have to do is build the first two to six plants and prove to Wall Street that we can do it on schedule," says Entergy's Keuter. If that happens, the mid-21st century could be a new Atomic Age.

Spain to lend 27M US dollars for solar energy project in RP
09/02 2:12:21 PM

MANILA (AFP) - Spain will lend the Philippines 1.52 billion pesos (27 million US dollars) to set up solar energy systems for remote villages under a land reform program, the government said Friday.

Solar-powered systems would boost agricultural productivity and electrify community facilities such as school buildings and potable water systems in areas which are inaccessible to normal power systems, it said.

Some 55,000 households in the central and southern Philippines will be provided with photo voltaic energy systems for agriculture and small businesses, the government said in a statement.

The Philippines would contribute 50.2 million dollars to the project.

New hydro power plant seen for Davao

Preparatory activities for the proposed Sibulan Hydro Power Plant Project in Sta. Cruz, Davao del Sur have already been carried out by Hydro Electric Development Corp. (HEDCOR), the Mindanao Economic Development Council (MEDCO) announced Monday.

MEDCO said HEDCOR is set to invest P2 billion for the construction of the hydropower project, which will help boost Mindanao’s power supply. Energy analysts have already indicated that power supply in the southern island is expected to fall against growing demand in the next few years if no new power generation projects are made.

"There is already substantial progress made by the proponent with respect to the preparatory activities for the proposed Sibulan Hydro Power Plant Project and we certainly look forward to seeing this project start soon," Jesus G. Dureza, MEDCO chairman, said, emphasizing that investments in power generation are crucial for Mindanao, especially with the sustained increase in power demand averaging five to 10 percent every year for the last five years.

The Proposed Sibulan Hydro Power Project was initially considered by HEDCOR in 1993 on a prefeasibility level and was concluded as potentially viable. However, further studies were halted due to the unfavorable peace and order situation in the project area at that time.

The proposed project will have a total installed capacity of 40-megawatts and is expected to generate 150 to 200 million kilowatt-hours of electricity annually. The project, which is designed to operate for 25 years, will include the construction of the two power plants, access roads, and transmission lines.

In response to the government calls for investments in power generation, HEDCOR renewed its interest on the project with commitment to help in staving off future power shortages in Mindanao through an environmentally sound power generation and energy production.

With the project’s feasibility study currently in its final stage, the project’s construction is expected to commence late this year with completion targeted for 2007.

HEDCOR is completing necessary pre-implementation and implementation requirements.

Dureza said he believes the community and the local government unit’s support to the proposed project were instrumental to the speedy implementation of this project .

The Mindanao Coal-Fired Power Plant is set commence operation by December 2006. Paul Anthony A. Isla

[B]RP better prepared to cope with high oil prices than its Asian neighbors — Lotilla [B]
By Rocel C. Felix
The Philippine Star 09/12/2005

The Philippines appears to be in a better position to cope with surging high oil prices compared to neighboring countries in Asia such as Indonesia and India which are set to raise their fuel prices and lift their subsidies.

Reports noted that India last week jacked up prices of its diesel and gasoline products by seven percent as their state oil companies cried of ballooning losses, amounting to some $9.1 billion, because of the subsidies.

Indonesia has also announced that it will reduce fuel subsidies by October this year after reporting huge losses of about $7 billion.

Malaysia also reported it has spent some $1.5 billion in subsidies for diesel alone and Thailand $2 billion for gasoline and diesel.

"Neighboring countries in Asia have realized that imposing subsidies on fuel prices are not sustainable and greatly threatens their economies due to the huge losses incurred and the adverse impact on their currencies," noted Energy Secretary Raphael P.M. Lotilla.

"With the removal of subsidies, the price adjustments these countries have to make are higher than the price adjustments in the Philippines as they have to make up for the price differential between the subsidized prices and actual market prices," he added.

Moreover, the move to increase prices has been anticipated and the adjustments were less than what were needed to bring their domestic prices in line with the international prices. But they added it was a step in the right direction to bring these countries’ economies back in shape as their respective currencies depreciated. In fact, it was reported that Indonesia’s rupiah has slipped 11 percent against the US dollar.

"I hope that further calls from some sectors to impose any form of subsidy on fuel prices in the country will end taking into account the experiences of other countries and the difficult times they face now compared with what we are experiencing here in the Philippines," Lotilla added.

The serious effects of imposing fuel subsidies were emphasized in the report of the Independent Review Committee (IRC) commissioned to undertake the review of the Downstream Oil Industry Deregulation Law.

The IRC report disclosed that about P18 billion in subsidies will have to be coughed up if diesel were pegged at P18.70 per liter when the Land Transportation Franchising and Regulatory Board (LTFRB) granted fare increases in May 2004.

The IRC added that subsidies have negative effects as these distort prices and discourage fuel conservation and efficiency at a time of very high prices.

"Subsidizing oil prices does not work in an era of rising crude prices because it would entail government resources that it cannot afford," the IRC report said.

The IRC report also noted that the Oil Price Stabilization Fund (OPSF) imposed in the early 1990s to absorb increases in world oil prices and to minimize frequent price adjustments is no longer applicable and should not even be considered at this time.

"Providing government subsidy will effectively displace national funds for other equally important projects," it said.

Despite the skyrocketing prices of oil in the world market, the Philippines’ pump prices are still considered the lowest in the region. In particular, the price of unleaded gasoline in the local market is at P33.43 per liter compared to the P94.06 per liter in Hong Kong and P36.38 per liter in Thailand. For diesel, the retail price in the country is P30.95 per liter against P58.41 in Hong Kong and P32.07 in Thailand.

German firm to invest in bagasse power plant
Posted: 7:42 AM | Sept. 12, 2005

Abigail L. Ho
Inquirer News Service

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A GERMAN INVESTOR WILL join the Philippine National Oil Co., Bronzeoak Philippines, Finnish funder Finnfund and Talisay Bioenergy Inc. (TBI) in developing a 60-million-dollar large-scale bagasse co-generation facility in Talisay, Negros Occidental.

PNOC president Eduardo Mañalac revealed that German firm DEG should become a development investor in the project within the month.

PNOC signed a development agreement for the project in October last year, cementing its commitment to make a 6-million-dollar equity infusion to give it a 30-percent stake in the project.

Of the project's total cost, 18 million dollars will be funded through direct equity infusions, with the balance to be financed by loans from banks and other lending institutions.

TBI is also finalizing an energy supply agreement with First Farmers Holding Co.

Mañalac had earlier said that this was "the first ever co-generation project in the Philippines to take off," after passing the financial study of the PNOC Investment Appraisal Committee.

The proposed 30-megawatt power facility will address the steam and power requirements of a medium-sized sugar mill and refinery in the area.

It will run on the by-products of sugarcane processing that will come from the host mill.

Additional bagasse requirements will come from other mills.

Last year, the project proponents signed a 30-year power supply agreement with the Central Negros Electric Cooperative (Ceneco), which serves Bacolod City and its suburbs.

Power to be delivered by the plant to Ceneco was seen hitting 158 gigawatt-hours a year.

Panay, Negros potential sites of wind-based power

ILOILO City – Residents of Panay and Negros Islands may not know it but their areas are potential sites of wind-based power.

Data obtained from the Department of Energy (DOE) indicate that Panay and Negros islands are potential sites of wind-based power in the country. Other areas include Batanes and Babuyan Islands, Ilocos Norte, Mindoro, Samar, Leyte, Cebu and Palawan.

Wind-based power is considered a very practical way of electrifying remote and far-flung areas that are off the power grid. DOE’s goal is to install wind-based power projects with a capacity of at least 417 megawatts (MW) in the next 10 years. One of these, the Bangui Bay project is expected to generate 25MW. This wind power system is partly funded by the Danish International Development Agency.

The Philippines has untapped wind resources. The wind resource analysis and mapping study conducted by the US National Renewable Energy Laboratory (US-NREL) using Geographic Information System (GIS) technology showed that many areas in the country are of good-to-excellent wind resource for village power applications, particularly in its northern and central regions.

These best wind resources are found in the regions: the Batanes and Babuyan Islands north of Luzon, the northwest tip of Luzon (Ilocos Norte); the higher interior terrain of Luzon, Mindoro, Samar, Leyte, Panay, Negros, Cebu, Palawan, Eastern Mindanao, and adjacent islands; well-exposed east-facing locations from northern Luzon southward to Samar; the wind corridors between Luzon and Mindanao (including Lubang Island) and between Mindoro and Panay (including the Semirara Islands; and extending to the Cuyo Islands.

Also, studies of the World Wildlife Fund and the University of the Philippines cited 1,038 wind sites in the country with a potential capacity of 7,404 MW. Potential sites considered feasible for using wind energy include 686 sites in Luzon and 305 in Visayas.

Aside from being clean and sustainable, alternative or renewable sources of energy are replenished unlike gas, coal and other oil-based products which may be depleted.

The country’s abundant renewable energy resources such as sun, wind, biomass, and geothermal energy are now fast gaining attention from the Arroyo administration amidst the high cost of fuel oil. Thus this augurs well for the use of alternative sources of fuel which the Arroyo administration is currently pushing.

Recently I remember having read a proposal to harness the undersea current of the San Bernardino Strait to produce electricity. I think it was by an European consortium. Has there been any news as to whether the proposed project is going to be pushed through? Or is it just an idea that hasn't been proven yet?

undersea current power production is extremly expensive to set-up. it would need billions of dollars. i do not think the philippines can get such a big loan. nevertheless it is very effective and extremly clean for the environment. there is one such plant in europe, in holland. huge infrastructure, took many years to build, and very, very costly. break-even point is only possible after a long stretch of time, like 35 years or so. so the government has to subsidize the electricity output until a profit is in sight.

New coal plant to boost Mindanao power supply


THE Mindanao Economic Development Council (Medco) said on Wednesday that building of the island-region’s first coal-fired power plant in Misamis Oriental is more than half complete, boosting sustainability of power supply.

In a recent status report obtained by Medco, chair Jesus G. Dureza said the construction of the $305-million Mindanao coal-fired power plant at the Philippine Investment and Development Corp. (Phividec) Industrial Estate in Misamis Oriental is more than 65-percent completed. Dureza added it has employed about 2,460 persons.

Considered as the biggest single investment in Northern Mindanao in the past two decades, Dureza said the project has substantially contributed to the region’s positive economic performance.

Implemented under the government’s build-operate-transfer (BOT) scheme, the 210-megawatt power plant is expected to be completed by end of next year. It is also expected to provide additional electricity representing approximately 15 percent of the island’s total power demand.

The project holder, Steag State Power Inc. is a BOI-registered company. It is 89 percent owned by Steag Aktiengesellschaft of Germany while the minority share is held by State Investment Trust Inc. (SITI) of the Philippines.

With its 170 personnel complement needed for future operations and by Steag AG’s proven track record in operating coal-fired power plants worldwide, Steag State began the construction, start-up, testing, commissioning as well as operations and maintenance of the power plant in compliance with Philippine and international standards.
--Paul Anthony A. Isla

Wow! 35 years to fruition with a billion dollars tag. Just to wait for that 35 years I can sing a million Humba, Humba, Humba Tatara. Thanks for the info, Herr Fischer.

RP cuts use of oil-fired power plants
Posted: 7:47 PM | Sept. 18, 2005

Published on Page B14 of the September 19, 2005 issue of the Philippine Daily Inquirer

SOARING oil prices in the world market have prompted the National Power Corp. to reduce its use of oil-fired power plants to 8.4 percent this year from 13.2 percent in 2004.

In terms of volume, oil-fed plants are said to account for 3,357.67 gigawatt-hours (gWh) of Napocor's full-year power production, down from last year's 5,471.69 gWh.

For the August-December period alone, the state firm aims to cut the share of oil-based power plants in the generation mix to 6.8 percent from 13.7 percent during the same period in 2004.

Napocor president Cyril Del Callar said that the state firm had already succeeded in slashing the share of diesel-fired plants in its generation mix to only 10.2 percent in the first half from 15.8 percent in the same period last year.

Napocor hopes to drastically reduce its use of oil-fired plants in all three main power grids.

In Luzon, it plans to bring down the grid's share of diesel plants in the generation mix to 1.2 percent in the August-December period from last year's 10.3 percent.

In the Visayas grid, the state firm wants to reduce this share to 4.4 percent from 11.3 percent last year.

A different scenario is expected in the Mindanao grid, however, as Napocor sees the share of diesel-fed plants to increase to 27.3 percent from last year's 26.4 percent.

Del Callar explained that Mindanao oil-based plants were needed to augment the existing capacities of the grid's hydroelectric and geothermal plants.

Earlier in the month, world oil prices approached the $70-a-barrel level.
Abigail L. Ho


Related Sites: National Power Corp

Cars can run on coco-gas, says study


CAR owners need not modify nor change their car’s engines to enjoy the benefits of coco-methyl ester (CME) preblended diesel, the Department of Energy announced Monday, citing a study conducted by Koji Yoshida of Nihon University, Japan’s largest university.

Yoshida’s study, done in partnership with the Integrated Research and Training Center of the Technological University of the Philippines, indicate that diesel fuel blended with coco-biodiesel can be used on unmodified engines. The study further shows that a 10-percent to 20-percent blend to diesel will not affect their vehicle’s engine power and performance.

Energy Secretary Raphael P.M. Lotilla said this means that any diesel-powered vehicle—jeepneys, buses, utility vehicles, trucks—can use coco biodiesel as an alternative fuel without modifying their engines.

Yoshida’s study also showed that using CME blends from 1 percent up to 20 percent by volume can reduce harmful emissions from diesel engines.

Estimates show that the use of 1-percent blend coco-biodiesel increases the mileage efficiency of a car by 10 percent. A full tank diesel engine that runs 500 kilometers, therefore, can gain an additional mileage of 50 kilometers.

In a bench test done at Nihon University using a single cylinder diesel engine, it was found out that coco biodiesel is effective in reducing hydrocarbon and particulate matter emissions, which are the biggest contributors to air pollution, as well as smoke concentration.

The study further concluded that visible smoke emission will be reduced where coco-biodiesel or its blend is used as fuel for diesel engine vehicles.

Meanwhile, when used on the newer truck, hydrocarbon and particulate matter emissions were reduced by 7 percent at 10-percent coco-biodiesel blend.

Findings of these tests were presented at the seminar on Road Vehicles International Standardization Activities sponsored by the Japan Society of Automotive Engineers and the Department of Trade and Industry Bureau of Product Standards early this month. Already, independent oil player Flying V is offering 1-percent preblend coco-biodiesel at selected stations in Metro Manila and Baguio City.

The DOE also reported that oil companies have agreed to make coco-biodiesel available as a shelf item at their service stations nationwide.
--Paul Anthony A. Isla

Renewable sources top RP energy mix


RENEWABLE energy sources accounts for more than half of the country’s total generation mix, according to Energy Undersecretary Melinda L. Ocampo.

“At present, coal, geothermal, hydro, solar and wind account for 56 percent of the country’s total generation mix,” Ocampo told a forum.

She said the government targets to bring down the share of oil-based power plants in the generation mix to close to 8 percent by year-end.

Earlier, the National Power Corp. (Napocor) said it is moving to minimize the use of its oil-fired power plants considering the continued escalation of crude oil prices in the world market. Napocor has been successful in bringing down the share of diesel-fired plants in its generation mix to only 10.19 percent from January to June this year from 15.84 percent last year.

The generation mix refers to the proportion of the different fuel types Napocor uses in producing electricity. For the rest of the year, Napocor targets to further slash the share of oil-based power plants to a single-digit level, specifically to only 6.81 percent, which is almost half the 13.7 percent it had last year.

On a per-grid basis, Napocor has set its most ambitious target for reducing the use of oil-based plants in the Luzon grid to 1.23 percent from 10.26 percent last year. Similarly, Napocor plans to bring down the share of oil-based plants in the Visayas grid to 4.37 percent from 11.30 percent last year. The only exception to this overall thrust would be the Mindanao grid, where Napocor expects the share of oil-fired plants to go up slightly to 27.25 percent in the August to December period, from 26.40 percent in 2004.
--Paul Anthony A. Isla

French firms eye rural electrification
Posted: 3:15 AM | Sept. 24, 2005

Abigail L. Ho
Inquirer News Service

AFTER signing a contract worth 17.5 million euros, or P1.2 billion, with the government's National Power Corp. (Napocor) for electrification of 128 villages in the island province of Masbate, French consortium Paris-Manila Technology Corp. (Pamatec) and ETDE of Bouygues Construction are considering providing another five million euros, or P300 million, for other similar projects, an official said.

The contract, which Napocor and the French consortium signed Wednesday, is under the Philippine Rural Electrification Service (PRES) Project, an initiative that aims to install electricity in all Philippine villages by 2008 and provide 100-percent individual household connection by 2017. Funding for the program comes from a 22.5-million euro (P1.5-billion) French Financial Protocol that the Philippines and France signed in November last year.

The consortium is considering allotting the remaining P300 million for similar rural electrification projects, Pamatec senior vice president and chief operating officer Philippe Saubier told the Inquirer.

It will first see if the Masbate project will succeed before deciding, Saubier said.

The choice of other areas to be similarly funded, if any, will depend on the Department of Energy's rural electrification plan, he said.

The Masbate electrification project is expected to benefit 18,000 households in 128 villages when it is completed two years from now.

Napocor data show Masbate has the lowest electrification level in the Philippines, covering only 56.18 percent of the province as of end-July.

Napocor supplies the province with electricity from three small power plants, including a power barge. According to its estimates, peak demand in the province is roughly 10 megawatts. With INQ7.net

Coal-to-liquid fuel production feasible

By PAUL ANTHONY A. ISLA, The Manila Times Reporter

The Philippines can move forward with a proposed coal-to-liquids production project for transportation fuel since a study has already confirmed that it is technically and economically feasible to do so, according to US-based Headwaters Inc.

In a study recently submitted to Malacañan, the American coal liquefaction firm said that the project, which involves the establishment of a hybrid plant, would produce up to 60,000 barrels a day of clean burning fuel at an estimated cost of $2.8 billion.

The proposed hybrid plant will consist of a direct coal liquefaction unit (DCL), a coal gasification and syngas cleaning unit, a Fischer Tropsch synthesis unit (FT) and a power block. DCL and FT units will each produce about 30,000 barrels a day of liquid fuels.

Headwaters, whose unit Headwaters Technology Innovations Group (HTIG) discovered the coal liquefaction process and invented the corresponding proprietary technology, said these products will be blended with a minimum downstream refining to meet the required fuel specifications. The facility will produce approximately 15 percent of the Philippines’ transportation fuel needs, resulting in estimated annual fuel cost savings of $3.2 billion, the company said.

The company said its DCL technology is being evaluated by Oil India Ltd., and licensed by Shenhua Group Corp. of China for a 50,000 barrels-a-day project in Inner Mongolia.

Headwaters’ FT technology will be further developed by the end of next year through a demonstration project in the UK.

The company plans to push ahead with the hybrid plant project, as it seeks financing for the next phase involving selected Philippine coals, which will be tested at HTIG to collect design data for the development of the front-end engineering package.

HTIG intends to sign a license agreement with the Philippines’ H&WB Corp. before the commencement of the program’s second phase.

Last month Energy Undersecretary Peter Anthony A. Abaya said the $2-billion coal-to-liquids project will consume about 10,000 tons of coal to produce up to 60,000 barrels of oil.

Abaya said the country produces low-grade to mid-grade coal. "We just have low-grade coal, and fortunately this technology loves low-grade coal. And we have three billion tons of low grades in this country, instead of burning and shoving the carbon in the air. Let’s liquefy it, put it in transport and lessen the use of imported fuel," he said.

Aussie firm bats for Bataan nuclear plant conversion

By Paul Anthony A. Isla, Reporter

AUSTRALIA-BASED Alternative Energy International (AEI) has proposed conversion of the mothballed 620-megawatt Bataan Nuclear Power Plant (BNPP), located north of Manila, into a hydrogen-fired power plant, according to Shane Mulcahy, the company’s chief executive.

Mulcahy said AEI has been convincing European energy firms to visit the facility after a possible joint venture deal was raised which would convert it into a hydrogen-fueled power plant.

“We are in talks with large European companies for the possibility of converting the BNPP. We’re looking at refurbishing BNPP and using hydrogen technology [to] bring the power plant into producing power,” Mulcahy said.

While AEI has the technology to enable the conversion, it is also on the lookout for possible partners for the plant’s commercial operation.

Once converted, the BNPP can generate as much as 1,000-megawatts of power, Mulcahy said.

Meanwhile, Lars Parelius, AEI commercial director, said the company is also looking at a decentralized power system using hydrogen to energize areas that need additional capacity. Parelius said decentralized power system “makes much sense” to an archipelagic country like the Philippines.

According to Parelius, AEI is pushing for hydrogen as a source of power because it is considered as the “fuel for the future.” Hydrogen gas combines with oxygen to form water and energy and can replace fuel oil or natural gas to power burners that provide the steam for small and large steam turbine electrical power plants.

Parelius, however, admitted that a major problem with the hydrogen economy, as currently envisioned, is the production, storage, and transportation of hydrogen.

Not only is it costly to produce, one-third of the energy is lost by storage. Moreover, aside from being an added cost, transportation of pressurized hydrogen can be dangerous. Parelius said AEI has addressed this concern through its patented Renewable Energy Production, Storage, and Transportation System, producing hydrogen from water where and when it is needed without the need for storage and at competitive pricing below gasoline or wind power.

Validated at the Queensland University of Technology, the AEI energy system has been proven to produce 520 liters hydrogen from one liter of water at costs that can compete with any renewable or conventional energy source.


Mirant to stay in RP, says DOE

The Philippine unit of US-based Mirant Corp. has assured the government it will keep its operations in the country, Energy Secretary Raphael P.M. Lotilla said.

On the sidelines of the PowerTrends 2005 exhibit, Lotilla said Mirant has expressed its commitment to support the government in restructuring the power industry and in rural electrification.

"At present, Mirant’s new owners will need to look at their global interest and that the outgoing management is not in the position to speak. From all indications, they remain interested in the Philippines," Lotilla said.

If Mirant gets out of bankruptcy, then it will be in a better position to aggressively expand, the energy chief said.

Lotilla said Mirant needs the consent of creditors for any major investment in the Philippines. Considered the Philippines’ biggest independent power producer, Mirant has interests in more than 2,200 megawatts of generating capacity in the country.

Mirant has been one of the largest foreign investors in the Philippines, operating its coal-fired plants at one of the lowest costs in their market and exceeding contracted availability.

Mirant owns eight power plants in the country, and was the first company to respond to the Philippines’ request for private sector assistance to meet growing electricity demand in the late 1980s.

Paul Anthony A. Isla



Mirant bares plan to review expansion strategy in RP

With the installation of new management, primarily in its Atlanta-based parent company, Mirant Philippines Corporation has bared to energy officials that they would need to undertake review of their planned business expansion in the country, including the 350-megawatt capacity addition for its Pagbilao power facility which company officials earlier announced.

During a courtesy call with Energy Secretary Raphael P.M. Lotilla, Mirant Philippines incoming president James R. Harris reportedly relayed that the company would sustain its keen interest in the Philippine power market; even as their new owners would be undertaking some rethinking of their global strategies.

"They (Mirant officials) gave us the assurance that they remain interested in the Philippines and in the restructuring and rural electrification," Lotilla said.

But he has noted that a more definite plan would be laid down on the table by the company; upon assumption into power of its new management.

It would be noted that as a result of its exit plan from the Chapter 11 or Bankruptcy Protection filing, the company would instituting a reorganization plan before its much-anticipated emergence from this dilemma before the end of this year. (MMV)

Lotilla added that while the outgoing management is not anymore in a position to speak on their future investment plans, "from all indications, they remain interested in the Philippines. I’m optimistic in saying that if they get out of bankruptcy, then they will be in a better position to aggressively expand and in making decisions existing to buy capacities or invest in new ones."

It would be recalled that Mirant Philippines last year unveiled its capacity expansion plan; wherein it is planning to pour in additional investment of $400 million; along with its partner, Global Business Holdings, Inc. of the Metrobank group.

Aside from Pagbilao, the Mirant-Global tandem is also eyeing an expansion of the Toledo coal plant in Cebu by another 100 megawatts.

The company has emphasized that the power facilities to be constructed; though running on coal as a fuel, will be utilizing state-of-the-art clean coal technology (fluidized bed technology) as well as the latest environmental mitigation measures that will ensure environment friendly operations.

It was likewise estimated that an estimated 600,000 metric tons of local coal per year will be used once the plants would already be on commercial operation.

Mirant said that with this capacity expansions, they would be able to help government plug the gap in power supply, both in the Luzon and Visayas grids.

It would be noted that the Department of Energy has been aggressively enticing investors to invest for new power projects so that a second round of power crisis could be averted in the country. (MMV)

Aussie firm bats for Bataan nuclear plant conversion

At lease something's being done with it instead of it just sitting idly by.

^ indeed, and plus power crisises never seem to end.

PIA Press Release
09/29/2005
Alternative diesel blend to debut in Davao

by PD Banzon

Davao City (29 September) -- A pre-mix alternative blend for diesel fuel that will be pumped directly to the vehicle tank will be piloted in next month in Davao City.

Edwin Clapano of Flying V at Club 888 Forum of the Marco Polo Hotel on Wednesday said the pilot project will determine whether the public will patronize it although he said that in their one liter pack blend most of the users are from the government.

"Unlike in the pack where blending is still to do done by the user, the pre-mix blend will be pumped directly," he said.

Labeled as "Envirotek" Clapano said adding the new diesel fuel blending could achieve maximum engine performance.

He said that with a one- percent ratio and the booster blend could be added directly to the fuel tank without making adjustment of the engine.

Clapano said there are three pumping stations that the public could access and this are the gasoline stations located near Magsaysay Park, Bankerohan and Bago Aplaya.

He said they have enough supply with 16,000 liters stored each tank even as he said that it is only through patronage that we can meet our target.

"Hit and miss ang gawin natin although we still do not know the market and it is only when the public will patronize the product," he said.

Clapano said that although the use of the fuel blend has been backed up by a Presidential Executive Order directing all government offices to make use of alternative fuel they are targeting for a mass consumption.

The Philippine Clean Cities Program he said is behind the program and being one of the members of the committee they could help in maximizing the advocacy.

It may be recalled that the government and the private sector aims to make composed natural gas be widely used next year through its natural gas vehicle program.

Using alternative gas could result to environmental and health benefits even as government authorities assured that alternative fuel could be used as blend with diesel fuel without engine modification.

Shifting to alternative gas will have clean engine and more efficient combustion thereby less maintenance cost. (PIA) [top]

Remote barangays depend on solar power

BONTOC, Mountain Province - Solar power, as an alternative source of energy, has proven beneficial to remote barangays in this highland province.

Vicky Subilla of the Mountain Province Electric Cooperative said that because of their inaccessibility, solar energy has provided power to the barangays of Maducayan, Natonin, Buringal, Paracelis, Ambagiw and Besao.

Solar energy has been providing electricity to 20 households each in barangays Maducayan and Buringal, and 10 in Ambagiw.

Solar panels have been installed to absorb energy from the sun. Energy from solar radiation is converted into electrical energy which households use in charging batteries to provide their lighting needs.

Some residents have installed their own solar panels in their homes, but others have formed themselves into groups to build bigger solar panels with bigger energy capacity, according to Subilla.

Solar energy is used mainly for drying crops and producing salt from brines, but the increasing demand for energy and the rising cost of fuel have driven people to depend on the solar system for their other electricity needs.

Of the province’s 145 barangays, 13 get their electricity through Mirant Philippines and four through the O-Ilaw/National Electrification Agency.

The cooperative is expected to energize the entire province soon.

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Japanese consultants bullish on Mt. Province hydropower projects
The Philippine Star 10/02/2005

BONTOC, Mt. Province — Japanese consultants are seeing bright prospects in two hydropower projects here which could generate electricity thrice the needs of the province.

The two hydropower projects are located in the Talubin, Bontoc River basin, the first in the upstream portion of Barangay Talubin called the "Talubin site," and the second, further downstream of the village or the "Caneo site."

Both the Talubin and Caneo projects could generate a maximum of 5,400 kilowatts each, according to the Philippine Information Agency (PIA) office in Mountain Province.

The two projects have a total capacity of 10,800 kilowatts, or thrice the 3,500-kilowatt electricity consumption of the province.

The PIA said a feasibility study conducted by the Tokyo Electric Power Services Co. Ltd. (TEPSCO) showed that the hydropower projects are economically, technically and environmentally viable, and do not have any significant impact on the natural and social environment.

The PIA added that collaboration between the provincial and municipal officials would make the projects a success.

Gov. Maximo Dalog urged government employees to support the hydropower projects, saying they will not only make the province energy-sufficient, but will also subsequently reduce electricity rates.

Some residents of Barangay Talubin, particularly the elders, however, still have reservations about hydropower development in their community.

In the 70s, local folk rose in arms against the World Bank-funded Chico River Basin dam project, which they believed would wipe out their ancestral lands and eventually their rich cultural heritage. The dam project, which was supposed to extend up to Kalinga, was eventually stopped.

In a meeting with the Provincial Energy Council (PEC) and the Talubin officials and residents, the Japanese consultants, led by Mitsuro Shimizu, TEPSCO’s community development and rural electrification chief, attributed the villagers’ apprehensions on their lack of sufficient understanding and knowledge of the operations of hydropower plants.

To address this concern, the provincial government is planning to conduct a "lakbay-aral," where villagers can visit existing hydropower plants in neighboring Benguet.

The Japanese consultants proposed a channel run-off-river-type generation system, requiring the construction of intake or impounding tanks in both project sites.

This would enable the water to pass through a headrace of 66.24 meters long for the Talubin site and 57.13 meters for the Caneo site to the power plants to generate electricity.

Provincial science and technology officer Norberto Cobaldez, a PEC member, said the hydropower plants, if their proposed development proceeds as scheduled, could be operational by 2010. — Artemio Dumlao

I must commend Sandrin for being super tyaga in posting all this. Half the posts are her articles, now I never need to look for these in the papers again! TY:)

By the way lochinvar. I remember that proposal in the San Bernardino Straight. The technology exists but is unproven hence unfinanceable. Quite interesting really but am not sure without subsidies it would work, specially in our present market rate setup for power.

Glad to know that the content of this thread will be of good use to you. Give credit to Sleepwalker for creating this thread and for the good introduction.

CNG project worth all the risks, says oil firm

The Shell Group of Companies may be taking all the risks by pouring in a considerable amount of money in a project pushing for the use of compressed natural gas (CNG) in public transport, but says it’s all worth it.

"Sometimes, we do things not for business reasons. At least if we start it, we get brownie points," said Shell Country Chairman Edgar O. Chua in a recent interview.

The company, via its mother and daughter stations in Tabangao, Batangas and Biñan, Laguna, will supply 200 buses with subsidized CNG in the next seven years for the natural gas transport project of the Department of Energy (DoE).

Expected to start this month, the project aims to help reduce the country’s oil import bill and have a cleaner metropolis via an environment-friendly fuel.

Shell’s investments in the project is P350 million, including the mother and daughter CNG stations and equipment.

Although the company has volunteered to put up the stations that could provide supplies to 10% to 20% more buses, the project is good for only seven years.

Shell has committed to provide a subsidized CNG fuel price (at P14.52 per cubic meter or in liter equivalent compared to the prevailing P32 to P33 per liter for diesel) specifically for the motorists to help them reduce their fuel expenses.

Mr. Chua, however, says anything can happen in seven years.

"CNG [for buses] is just an additional requirement. We have a finite resource. The quantity of gas, for example, is one trillion cubic feet, which is good to power 2,700 megawatts of power plants for 25 years. But say, I require now X quantity of natural gas to supply the buses... that means it will reduce the supply of others," he noted.

The natural gas from the Malampaya field in northwest Palawan is also used for the 1,500 megawatt (MW) Sta. Rita and San Lorenzo plants in Batangas owned by the Lopezes’ First Gas as well as the 1,200-MW Ilijan power plant.

The initial number of 200 buses running on CNG, however, is negligible and is not expected to hamper power generation.

"It’s only after the project is proven successful that we will decide whether we will make it commercial," Mr. Chua added.

The commitment of the consortium handling the Malampaya field is to produce about 10 billion liters a year.

"After that, we hope that the infrastructures will still be there and we can simply expand the facilities," Mr. Chua said.

He said options were open at the end of the pilot project but things had to be done to make the CNG public transport become more feasible and commercial.

Though Shell has found success in developing CNG in other parts of the world, the risk in the Philippines is the supply and commitment from the government and the motoring public.

Mr. Chua said Shell put up the mother and daughter stations "because the government asked us to support them and we were setting the groundwork for the eventual usage of natural gas." He said the company does not stand to gain in the seven-year run.

The long-term outlook for CNG is dependent on having the right infrastructure like pipelines from Batangas to Manila, as well as discovering more natural gas fields, he said.

The government is currently implementing circulars and different projects to enhance the transport program.

It should be noted that the government is still looking at possible investors for the pipelines, estimated to cost up to $100 million (P5.6 billion), that will bring the natural gas to as many areas as possible in Metro Manila.

The government is also in the process of looking at another major discovery of oil and natural gas basin outside Malampaya. Still, it has to hurdle investment issues and attract more explorers into the different petroleum areas. It takes around seven years to justify a declaration of commerciality of the petroleum site.

On one hand, Shell is already at the forefront of doing the exploration activities. It will soon acquire another service contract from the Energy department for the exploration of an area in Northeast Palawan, together with a Kuwaiti firm and South China Resources. Whether this will result in another Malampaya field is still a question mark.

"Remember, this is just a pilot [project] and we should focus here first. Once it is proven successful, [let’s] use the learning. Then that’s the time that we can decide on what is the next step. It should be one step at a time," Mr. Chua said. -- Ira P. Pedrasa

Does all this exploration off the coasts of Palawan pose any threat to its wonderful marine ecosystems?

Friday, October 07, 2005
Power firm to optimize operations with new substation

DAVAO Light and Power Company's quest for total customer satisfaction carries on with its acquisition of a new 33 MVA Mobile Substation to serve as one of its solutions to electric service continuity.

Imported from Pauwels Contracting N.V. in Mechelen, Belgium, this P31 million piece of equipment is a compact construction of a fully equipped electrical substation mounted on semi-trailers, thus, making it possible to be transported from one place to another.

It also has the capability to rapidly integrate and easily form part of Davao Light's electric distribution system which currently comprises of 21 substations.

Like any conventional substation, the Mobile Substation is able to, among other things, increase the voltage of electricity so that it can be transported efficiently over long distances or reduce the voltage so that it can be delivered in a practical and economical manner to homes and businesses.

However, due to its portable structure, it is ideally designed for use in situations when a permanent substation is out of service, as a temporary source of power at locations such as large construction sites, or as emergency backup during power shortage due to electric distribution line constraints.

Also, with the existence of this new facility, load shedding caused by power transformer breakdown will no longer be an option. Load shedding is the cutting off of electric supply on certain lines when power demand becomes greater than the supply. The Mobile Substation will be able to readily supply the needed power at any given time of the day, especially during peak load hours, or around 6-9 p.m.

Davao Light's mobile substation arrived late in August this year. It is presently put into use substituting for the 10 MVA Calinan Substation, which is undergoing rehabilitation works estimated to last for six months.

Flying V rolls out biodiesel sales in its Mindanao gasoline stations
By MYRNA M. VELASCO

Independent player Flying V is rolling out toward the end of this month the sale of coco methyl ester (CME) pre-blended diesel products in its gasoline stations in Mindanao.

This served as an expansion of its distribution of the biodiesel blended products which it first did in its Metro Manila and Central Luzon stations.

Flying V chief operating officer Paul Tanjutco said the company’s Envirotek Bio-Diesel Premium (preblended bio-diesel) will be simultaneously launched in at least eight of its gasoline stations in Davao City by October 27.

"The Davao launching shall signal the start of Flying V’s accelerated rollout of its brand of cocomethyl ester (CME) preblended diesel in Southern Philippines," he added.

By year-end, the company is committing that eight more of its gasoline stations in Mindanao will be ready to retail pre-blended diesel.

Its scheduled sale in Davao will bring to 46 Flying V stations that is now carrying the product. Currently, it is now available in 18 Metro Manila stations, three in North Luzon, five in South Luzon and 12 in Central Luzon.

"Barely two months after its introduction, biodiesel received generated market acceptance and patronage. We will have a grand launching in the Ilocos region where we have 19 stations in November," Tanjutco said.

It would be noted that while the giant oil firms are giving lukewarm response to the introduction of CME as alternative fuel due to questions on the long-term viability of its properties that are not fully proven through testing, it is the independent players that are giving it an aggressive push.

"We are on target to have at least 90 percent of our stations carry biodiesel by year-end, and 100 percent by first quarter of 2006," Tanjutco stressed.

To date, the only biggest supplier of CME to gasoline stations is the Filipino-owned firm Chemrez which is currently expanding its production facility for anticipated massive consumption of the proposed alternative fuel.

Among oil industry players, Flying V claims to have pioneered the products introduction into market around August this year.

With the government stepping up its campaign on the utilization of alternative fuel in light of the continuously rising global oil prices, President Arroyo also asked the oil firms to display CME product as a shelf item in their gasoline stations; but the industry players maintained that this would still depend on the assessment of their marketing managers on the saleability of the product.

With the fuel product promotion being backed up by the Department of Energy and the United States Agency for International Development (USAID), those already selling it claim that it reduces harmful engine emission, greatly increase fuel mileage, and improves engine performance. (MMV)

Smith Bell, Danish partners to raise $110M for Negros wind farm proj
By Rocel C. Felix
The Philippine Star 10/10/2005

Filipino-owned Smith Bell Group of Companies and Danish firm Global Renewable Energy Partners will raise $110 million for the second phase of its San Carlos Wind Farm project in Negros Occidental.

Smith Bell and Global Renewable Energy Partners earlier put up the Carlos Wind Power Corp. in 2003 to undertake the development and implementation of the 30-megawatt (Phase I) San Carlos wind farm project.

Smith Bell president Ruth-Yu Owen said that as the company is nearing financial closure for Phase I of its San Carlos wind farm project, it now wants to develop a bigger 60-MW wind farm facility, also in Negros Occidental

"We’re eyeing phase two in another town but it will be bigger, twice the size of our current facility," Owen said. She said Phase II of San Carlos will start either in 2008 or 2009.

Owen said the company expects to close financing for Phase I by 2006.

It is tapping the Danish International Development Agency (Danida) by next year for the bulk of its financing requirements for Phase I which will cost a total of $55 million.

Danida is the same agency that bankrolled the construction of the country’s first wind farm in Bangui Bay, Ilocos Norte.

Phase I of San Carlos project straddles the three peaks of Mount Malindog, Brgy. Prosperidad and Linubagan. Construction is slated early next year.

The wind farm will have 19 to 24 turbine generators each with a capacity of 1.5 to 2 Megawatts.

Owen said that once completed, the wind farm will enable the company to provide cheaper electricity to consumers. Currently, renewable energy projects such as wind power are not subject to the expanded value added tax (EVAT).

The company started to study wind speeds in San Carlos City, Negros Occidental in recent years. The study show expected gross generation of between 75-80 million kilowatthour per annum, which is equivalent to the consumption of around 150,000 households in the country.

The wind project is part of Smith Bell’s drive to develop renewable energy sources to reduce the country’s reliance on imported fossil fuels such as coal and oil.

At the same time, it will boost the country’s commitments under the Kyoto Protocol to reduce the emission of greenhouse gases.

The Philippines has a potential wind power of 76,600 MW which is even higher than known wind power producing countries like Germany (14,000 MW potential wind power), Spain and US (6,000 MW each), Denmark (3,000 MW) and India (2,100 MW).

As part of efforts to accelerate the development of renewable energy sources, the Department of Energy earlier announced plans to hold the second contracting round for 18 wind sites nationwide.

Energy Secretary Raphael M. Lotilla said the new wind sites being offered will have a total capacity of 500 MW.

The new wind sites are in Bani, Pangasinan (40 MW), Bolinao, Pangasinan (40 MW), Dinapigu, Isabela (10 MW), Cuyo Island, Palawan (30 MW), Tagaytay, Cavite (30 MW) Donsol-Jovellar, Sorsogon (70 MW), Donsol, Sorsogon (40 MW) Pilar, Sorsogon (40 MW), Matnog, Sorsogon (10 MW), Pandan, Catanduanes (30)MW, Dumangas, Iloilo (50 MW), Siquijor (10 MW), Carmen, Cebu (20 MW), Oslob, Cebu (30 MW), Allen-Lavezares, Northern Samar (10 MW) Tomas Oppus, Southern Leyte (10 MW) and Gigaquit, Surigao Del Norte (30 MW).

Currently, the country’s first and only wind farm to date was developed by Northwind Power Development Corp. in a 40 percent Danish, 60 percent Filipino partnership.

The 25-MW Northwind Bangui Bay Project is also a landmark development for our country since it became the first participant in the global carbon market. Another wind project in the pipeline is a 40-MW wind farm also in northern Luzon

The project financing was provided by Danida, the Danish government aid organization that granted $11.2 million in capital to jumpstart the project and another $8 million in grants for its completion.

An export credit facility of $29.35 million was arranged under a loan agreement bet-ween the Northwind Power, the Trade and Investment Development Corp. of the Philippines, ABN AMRO Bank NV and the Danish Export Agency.

Last year, the DOE launched 16 wind sites and the first contracting round was held last March of which five were already issued pre-commercial contract. Several companies have also expressed interest for the next 11 sites.

New power scheme cuts electricity bills

By NIEL V. MUGAS
The Manila Times Reporter

Electricity distribution utilities and industrial customers directly sourcing their power requirements from the National Power Corp. (NAPOCOR) under its time-of-use (TOU) scheme have incurred as much as P754 million in savings since November last year.

The TOU encourages customers, mainly distribution utilities and industrial customers, to avail of themselves power during off-peak hours at lower tariffs.

Off-peak hours are from 10 p.m. to 7 a.m., while peak hours of electricity use run from 10 a.m. to 4 p.m., and from 6 p.m. to 9 p.m.

In its report to the Energy Regulatory Commission, the NAPOCOR showed that about 124 electricity distributors, and 33 industrial users saved P754 in their electricity bills under the TOU scheme from November last year to August this year.

Of that amount, P219 million in savings was incurred in August alone.

Among the firms that realized the biggest savings in August were the Angeles Electric Co., at P0.6377 per kilowatt-hour; TIPCO Estates Corp., P0.3941; the Manila Electric Co. (MERALCO), P0.3694; Davao Light & Power Co. Inc., P0.1069; and the Visayas Electric Co. Inc., P0.0831.

These firms’ savings may be passed on to households in terms of lower electricity cost.

In Metro Manila, for example, households can expect lower power rates because of MERALCO’s savings.

"This is why we are urging all our industrial customers who have not yet signed up for the TOU program to take advantage of this scheme because this will really reduce their monthly electricity bills," Cyril del Callar, NAPOCOR president, said.

He explained that NAPOCOR’s TOU rate in August, for example, stood at P3.3835 per kilowatt-hour, or P0.0907 lower than the average rate of P3.4735.

"Given that the energy demand of our customers runs into thousands of megawatts, a nine-centavo price difference can translate into millions of pesos in savings for them," he added.

TOU rates range from as low as P1.8294 per kilowatt-hour during off-peak hours to as high as P5.9145 during peak hours in Luzon.

The TOU rates range from P1.4520 to P5.9296 in the Visayas grid, and from P1.2953 to P2.5368 in the Mindanao grid.

TOU rates are higher from Mondays to Saturdays (as compared with Sundays and holidays), and from January to June, when the weather is generally warmer, the demand for electricity is higher.

Rates go down in the second semester during which the climate is generally cooler and more electricity is available from the hydroelectric power plants and those that run on indigenous fuels.

Monday, October 10, 2005
Power firm optimizes with new mobile substation

THE Davao Light and Power Company's (DLPC) recently purchased a mobile power substation as part of its quest for total customer satisfaction.

Ross Luga, DLPC corporate communication officer, said the new 33 MVA (megavolts ampere) mobile substation would serve as one of the solutions to electric service continuity.

Imported from Pauwels Contracting N.V. in Mechelen, Belgium, this P31 million piece of equipment is a compact construction of a fully equipped electrical substation mounted on semi-trailers making it possible to be transported from one place to another.

It also has the capability to rapidly integrate and easily form part of Davao Light's electric distribution system, which currently comprises of 21 substations.

Like any conventional substation, the mobile substation is able to increase the voltage of electricity so that it can be transported efficiently over long distances or reduce the voltage so that it can be delivered in a practical and economical manner to homes and businesses.

However, due to its portable structure, it is ideally designed for use in situations when a permanent substation is out of service, as a temporary source of power at locations such as large construction sites, or as an emergency backup during power shortages due to electric distribution line constraints.

Also, with the existence of this new facility, load shedding caused by power transformer breakdown would no longer be an option.

Load shedding is the cutting off of electric supply on certain lines when power demand becomes greater than the supply.

The mobile substation would be able to readily supply the needed power at any given time of the day, especially during peak load hours, or around 6 to 9 p.m.

The mobile substation arrived late in August this year. It is presently put into use substituting for the 10 MVA Calinan Substation, which is undergoing rehabilitation works estimated to last for six months. (BOT)

just a bump.. taken from inq7.net..

Giant windmills energize northern Philippines

First posted 11:42am (Mla time) Oct 12, 2005
By Cecil Morella
Agence France-Presse

BANGUI -- When enormous windmills began appearing on a desolate stretch of the northern Philippines coast, locals were overjoyed rather than alarmed.

The steel contraptions, standing 23 storeys high, were unlike anything impoverished families from Bangui Bay had ever seen. But they were enthusiastic nevertheless.

The 15 "giant electric fans" were bringing electricity to their homes for the first time.

"It was a joy to watch them being built," said 72 year-old Rosita Ridun, whose family earns less than two dollars a day collecting pebbles on Bangui beach for sale to construction companies.

"My grandchildren described them as giant electric fans."

Standing in an arc in wind-lashed scrubland, the windmills, which started supplying electricity to 40 per cent of Ilocos Norte province in May, are the first source of clean energy introduced in the Phillipines, a nation with 84 million people reliant on oil and gas.

Costing more than 48 million dollars, the windmills,built by a private company with interest-free loans from the Danish government, can harness winds the strength of Hurricane Katrina which devastated the US Gulf Coast last month.

And as crude oil prices spikes above 70 dollars, interest in the windmills is growing. President Gloria Macapagal-Arroyo has ordered a reduction in fuel consumption and an investigation into possible alternative energy sources.

Consequently, government and state-owned power company officials are requesting the head of the Bangui Bay project, a Danish engineer, try and help them replicate these windmills throughout the country.

"Everybody wants to be a wind developer now," said engineer Niels Jacobsen, president and chief executive of the Northwind Power Development Corp.

Jacobsen started work on the 24.75-megawatt project in 1999 after meeting Ilocos Norte provincial governor Ferdinand Marcos Junior, who was intent on fixing the patchy and low-voltage power supply to his region which lies on the northern tip of the country's electricity grid.

Marcos was well aware of the potential of wind because his father and former president, also Ferdinand Marcos, ordered a study into alternative energy in the 1970s amid the first global oil crisis.

The project itself was a logistical and engineering feat.

Each of the three rotor blades and its base, called a nacelle, weighs 104 tonnes with a diameter wider than the wingspan of an Airbus.

Three piers were built to land these structures and the tapered towers of steel measuring 4.2 meters thick (4.6 yards) at their base, which were shipped direct to Bangui Bay from Europe.

Piles were driven 12 meters (13.12 yards) into the leased land to support a 17-meter (18.6-yard) diameter base plate made up of 300 cubic meters (10,593 cubic inches) of concrete on which each tower stands.

A substation and 57 kilometers (35.3 miles) of transmission lines were also built to deliver the electricity to the province's local power cooperative. The cooperative buys this electricity at a discounted rate rather than sourcing more expensive electricity from a state-owned company.

But it's not just the cooperative and locals who have benefited from the windmills. Northwind earned carbon credits from the project--and will sell 1.5 million dollars worth of them over 10 years to the World Bank which manages a carbon credit fund as part of the Kyoto protocol to reduce greenhouse gases.

"We only sold a portion because, upon the advice of the World Bank, those carbon credits that we are still entitled to may be sold at a higher price later," said Ferdinand Dumlao, Northwind board chairman and treasurer.

Dumlao said the project cost translated to two million dollars per megawatt of power generated, which is more than double the start-up cost of a normal power plant running on coal, oil, or other conventional fuel.

Without the interest-free loans from the Danish International Development Agency (Danida), the project would have been unviable.

Danida provided 30 million dollars in loans, payable over 10 years, and more than 10 million dollars in grants, with the rest of the project cost coming from shareholders' equity, including loans provided by the windmill and other equipment manufacturers.

"It's not really going to make anyone rich," said governor Marcos, adding that Northwind investors would need between 20 and 25 years to earn money.

"Frankly, if there's money to be made the province would have involved itself."

However Marcos does think the windmills will have other spinoffs, such as perhaps becoming a permanent drawcard for tourists.

"Ilocos Norte is not really the spot where you would expect to see a high-tech operation like the windmill, so the people can hardly believe it. I can barely believe it myself," Marcos said.

"You even have tourists visiting the site which is great. It would make people more conscious about the availability of alternative power sources."

^ yeah I cant wait for us to be called the Holland of Asia, im sick and tired of being called the Pari of Asia. Paris is not very nice mas madaming pulubi kaysa NY :lol:

taken from inq7.net

http://www.ntu.edu.sg/home2003/tu0001es/zoom1.jpg

^^ nice one, michael.

___________________________________________________________________

Wednesday, October 12, 2005
P1.1 billion set aside for power expansion

GENERAL SANTOS CITY -- The government has earmarked some P1.1 billion to fund the expansion of the 138-kilovolt (kV) General Santos-Tacurong Transmission Line in a bid to build up the power linkages to this city and neighboring areas in southwestern Mindanao.

Jonathan L. Uy, director of the National Economic and Development Authority's (Neda) public investment staff, said the project was among the interventions approved by the Investment Coordination Committee-Cabinet Committee to help hold off a possible power crisis in Mindanao.

"This project would ensure power system stability and reliability in Southwestern Mindanao, considering that the old existing system has already reached its economic life, thus a candidate for improvement," Uy said in a statement.

Southwestern Mindanao, based on the National Transmission Corporation's (TransCo) geographical division, covers the provinces of Sarangani, South Cotabato, Sultan Kudarat, Cotabato and the cities of General Santos, Koronadal, Kidapawan, Cotabato and Tacurong.

Uy said the General Santos-Tacurong Transmission Line project includes the expansion of power substations and replacement of old wood pole-supported single circuit 138 kV line in the area.

Uy said that aside from providing higher power transfer capacity between the substations as well as access to future base load plants in General Santos City and Sultan Kudarat in the Mindanao Grid, the project was compliant with the National Grid Code.

Citing ICC documents, Uy cited that the project would be financed through a government loan under the Miyazawa Fund.

The Miyazawa Fund is a bilateral assistance provided by the government of Japan to cover trade financing, financing for the manufacturing sector, assistance for structural reforms and for social safety net.

It is a support package provided for Asian countries affected by the currency crisis, which started in July 1997, in overcoming their economic difficulties and to contribute to the stability of international financial markets.

At least P882.88 million would be funded by the loan while the government, as its counterpart would provide the remaining P204.70 million.

TransCo president Alan Ortiz said that the immediate implementation of the project is very important, as it would ensure a steady and uninterrupted supply of power for the growing industries in the region.

TransCo earlier noted that 47 percent of Mindanao's total power demand is in Southern Mindanao particularly in this city and Davao City that registered a 10-percent increase over the last decade.

Based on TransCo's Power Development Plan, Mindanao's peak demand for electricity is seen to increase by 1.24 percent a year or from 1,112 megawatts (MW) in 2004 to 1,864 MW in 2013.

The increase was projected based on the 1.9 percent annual population growth of the island and 4.8 percent economic growth.

Nature-dependent hydropower system lights up natives’ lives

COLUMBIO, SULTAN KUDARAT -- A far-flung community in this remote town has established a tree nursery to sustain the watershed that powers a micro-hydropower plant granted them a few weeks ago.
Five years from now, close to a hundred residents of Sitio Lam-alis, Barangay Datalblao also expect to reap the gains of the fruit-bearing trees like durian, lanzones and rambutan by selling them in the commercial market.
The planting of more than 100 fruit-bearing trees were part of efforts to ensure the upkeep of the micro-hydro power plant and the potable water system that was also given to the community.
The Columbio government provided the planting materials to the village that is mostly inhabited by members of the B’laan tribe.
Mando Sabusido, secretary of the Lam-alis Christian-B’laan Renewable Energy Association, told BusinessWorld it was the first time in several decades that the community has experienced having electricity.
"It’s really a big help because now we can do productive undertakings even at night. Our children can also study better now than before when we were using kerosene lamp," he said.
Mr. Sabusido said protecting the watershed is necessary for the micro-hydro power plant to continue operating in the village that is accessible only by poor, bumpy road conditions.
He noted that electricity used to be a luxury since no distributor dared to put up a power grid given the place’s remoteness, which is at the mountainside, and the area’s lack of commercial viability.
But thanks to the Alliance of for Mindanao Off-grid Renewable Energy (Amore), a program funded by the United States Agency for International Development, a micro-hydro power plant was set up in the community.
The plant, worth some P8 million, can produce nine kilowatts for 88 households, said Recto Doctor, Amore area-3 manager.
In the next four years, he added, and with a funding of $10 million, nearly 200 more remote villages in Mindanao are targeted to have electricity.
Since the project started in February 2002, Amore has lighted up at least 227 barangays in Sultan Kudarat, Davao, Zamboanga Sibugay, Zamboanga del Sur, Zamboanga City, Tawi-tawi, Basilan, Sulu and Maguindanao.
The electrification program was set up from February 2002 to March 2005 with an original budget of about $8 million from the US agency.
In October 2004, Amore got a new funding of $10 million for a second phase that will run until 2009. The micro-hydro power plant in Sitio Lam-alis, said Mr. Sabusido, has provided business opportunities to enterprising residents; at least three sing-along bars have mushroomed.
Other business-minded residents established mini-theaters using video compact disc players for only P2 to P3, he said.
More importantly, stressed Mr. Sabusido, as that residents can now follow national events via the news programs of major television channels. "Before, we heard the news only on battery-operated radio."
Meanwhile, IBM Philippines donated a computer set for the village elementary school, marking the first time for students to be aware of information technology. Also, Smart Telecommunications, Inc. has put up a public calling center.
With the presence of the micro-hydropower plant, Mr. Sabusido said it has become necessary for them to protect the environment.
"Once the river dries up, the micro-hydropower plant would no longer work because it is the tide that fuels the system to run. With that, we would go backward or into virtual darkness again. Environment protection is really important," Mr. Sabusido said. -- Romer S. Sarmiento

so where's BANGUI, anyway

BANGUI, Philippines (AFP) - When enormous windmills began appearing on a desolate stretch of the northern Philippines coast, locals were overjoyed rather than alarmed.


The steel contraptions, standing 23 storeys high, were unlike anything impoverished families from Bangui Bay had ever seen. But they were enthusiastic nevertheless.

The 15 "giant electric fans" were bringing electricity to their homes for the first time.

"It was a joy to watch them being built," said 72 year-old Rosita Ridun, whose family earns less than two dollars a day collecting pebbles on Bangui beach for sale to construction companies.

"My grandchildren described them as giant electric fans."

Standing in an arc in wind-lashed scrubland, the windmills, which started supplying electricity to 40 per cent of Ilocos Norte province in May, are the first source of clean energy introduced in the Phillipines, a nation with 84 million people reliant on oil and gas.

Costing more than 48 million dollars, the windmills, built by a private company with interest-free loans from the Danish government, can harness winds the strength of Hurricane Katrina which devastated the US Gulf Coast last month.

And as crude oil prices spikes above 70 dollars, interest in the windmills is growing. President Gloria Arroyo has ordered a reduction in fuel consumption and an investigation into possible alternative energy sources.

Consequently, government and state-owned power company officials are requesting the head of the Bangui Bay project, a Danish engineer, try and help them replicate these windmills throughout the country.

"Everybody wants to be a wind developer now," said engineer Niels Jacobsen, president and chief executive of the Northwind Power Development Corp.

Jacobsen started work on the 24.75-megawatt project in 1999 after meeting Ilocos Norte provincial governor Ferdinand Marcos Junior, who was intent on fixing the patchy and low-voltage power supply to his region which lies on the northern tip of the country's electricity grid.

Marcos was well aware of the potential of wind because his father and former president, also Ferdinand Marcos, ordered a study into alternative energy in the 1970s amid the first global oil crisis.

The project itself was a logistical and engineering feat.

Each of the three rotor blades and its base, called a nacelle, weighs 104 tonnes with a diameter wider than the wingspan of an Airbus.

Three piers were built to land these structures and the tapered towers of steel measuring 4.2 meters thick (4.6 yards) at their base, which were shipped direct to Bangui Bay from Europe.

Piles were driven 12 meters (13.12 yards) into the leased land to support a 17-meter (18.6-yard) diameter base plate made up of 300 cubic meters (10,593 cubic inches) of concrete on which each tower stands.

A substation and 57 kilometers (35.3 miles) of transmission lines were also built to deliver the electricity to the province's local power cooperative. The cooperative buys this electricty at a discounted rate rather than sourcing more expensive electricity from a state-owned company.

But it's not just the cooperative and locals who have benefited from the windmills. Northwind earnt carbon credits from the project - and will sell 1.5 million dollars worth of them over 10 years to the World Bank which manages a carbon credit fund as part of the Kyoto protocol to reduce greenhouse gases.

"We only sold a portion because, upon the advice of the World Bank, those carbon credits that we are still entitled to may be sold at a higher price later," said Ferdinand Dumlao, Northwind board chairman and treasurer.

Dumlao said the project cost translated to two million dollars per megawatt of power generated, which is more than double the start-up cost of a normal power plant running on coal, oil, or other conventional fuel.

Without the interest-free loans from the Danish International Development Agency (Danida), the project would have been unviable.

Danida provided 30 million dollars in loans, payable over 10 years, and more than 10 million dollars in grants, with the rest of the project cost coming from shareholders' equity, including loans provided by the windmill and other equipment manufacturers.

"It's not really going to make anyone rich," said governor Marcos, adding that Northwind investors would need between 20 and 25 years to earn money.

"Frankly, if there's money to be made the province would have involved itself."

However Marcos does think the windmills will have other spinoffs, such as perhaps becoming a permanent drawcard for tourists.

"Ilocos Norte is not really the spot where you would expect to see a high-tech operation like the windmill, so the people can hardly believe it. I can barely believe it myself," Marcos said.

"You even have tourists visiting the site which is great. It would make people more conscious about the availability of alternative power sources."

Ilocos Norte

I can't believe they imported the towers, that's so easy to make here.

^marupok daw sa pnas baka gamiting material ay yero.

Bakit, di ba nila kilala ang buko da tree of life. kakalawangin lang iyang bakal. renewable pa!

^^those windmill are like 200 feet high, is buko tree that tall.

Mirant energizes island off Subic

THE Philippine unit of Mirant has infused fresh capital for the construction of a two-and-a-half kilometer submarine cable that will energize key locations in the Subic Bay Freeport.

Worth P42 million, the 13.8-kilovolt submarine cable will supply four megawatts of electricity from Camayan Point to nearby Grande Island, which is sufficient to provide power to a dozen commercial tourist destinations in the zone.

Besides increasing its productivity, Mirant Philippines president James R. Harris believes that providing electricity to the island will boost the area’s economic activity, including tourism.

The Subic Bay Freeport Zone is considered as among the country’s premier investment sites, housing major firms including Fed Ex, Wistron (formerly Acer), and Sankyo Seiki. It is also the site of Ocean Adventure, a theme park.

“We are pleased to announce the completion of this submarine cable which can help boost Subic’s tourism industry and possibly attract more businesses and visitors,” Harris said.

The IPP supplies power to the Freeport through the Subic Enerzone Co., the utility firm that distributes electricity within the zone.

The provision of electricity in Grande Island is part of Mirant Philippines’ rural electrification efforts.

Besides supplying electricity to 1,000 villages, it has built over 11,000 kilometers of distribution lines, benefiting an estimated 1.5 million individuals in 33 provinces.

Mirant Philippines, a wholly-owned subsidiary of Atlanta-based Mirant Corp., is the largest private producer of electricity in the country, owning more than 2,000 MW of installed generating capacity nationwide.

It is also the biggest supplier of electricity to the National Power Corp. through its nine plants nationwide including the coal-fired plant in Sual, Pangasinan, which supplies about 1,218 MW of power to the state-owned firm.

Not only does it have a stake in the natural gas-fired 1,200 MW Ilijan power plant in southern Luzon, Mirant also owns the 700 MW coal-fired plant in Pagbilao, Quezon, which has been discovered by environmentalists, such as Greenpeace, to emit toxic substances.
-- Niel V. Mugas

Transco completes sale of P1-B assets
By Donnabelle L. Gatdula
The Philippine Star 10/26/2005

Cebu City – The state-run National Transmission Corp. (Transco) has sold over P1 billion worth of sub-transmission assets (STAs) with the signing of three more contracts last week, the company’s top official said.

"To date, we have signed 21 contracts with distribution utilities and electric cooperatives throughout the country. We are proud to reach this milestone in fulfillment of our mandate to bring about the reforms envisioned by the EPIRA (Electric Power Industry Reform Act)," Transco president and CEO Alan T. Ortiz said.

Ortiz said divesting the STAs to qualified firms will ultimately boost the reliability, security and affordability of electricity for the end-consumers.

But Ortiz pointed out that the sale contracts for the STAs has yet to be approved by the Energy Regulatory Commission (ERC).

"Now it’s up to the ERC to approve this P1-billion contracts," the Transco executive said.

Last Oct. 18, Transco signed P131 million in lease-purchase agreements with Tarlac Electric Inc. (TEI) and with Misamis Oriental-I Rural Electric Service Cooperative Inc. (MORESCO I) and MORESCO II on Oct. 20.

The contract with TEI is the sixth sale contract entered into by Transco with a distribution utility in Luzon. TEI will pay P18.41 million for 223 structures along the Concepcion-TEI 69-kilovolt (kv) and Concepcion-Maliwalu lines.

Ortiz said the full payment would be due within 10 calendar days from the approval of the ERC.

MORESCO I, on the other hand, has agreed to purchase 520 line structures and substation assets within its franchise area for P54.54 million.

It would pay P10.91 million which is equivalent to 20 percent of the amount upon ERC approval of the amount. The remainder would be paid over 15 and a half years.

MORESCO II would pay P58.24 million for 356 line structures along the Nasipit-Gingoog 69-kv and Gingoog-IndoPhil 69-kv lines.

The down payment of 20 percent or P11.65 million would be due upon ERC approval with the balance to be amortized over 19 years.


PMR Group mulls 160-MW wind power project in Quezon province
By Donnabelle L. Gatdula
The Philippine Star 10/26/2005

PMR Group Ltd., a major stockholder of Quezon Power Philippines Ltd. (QPPL), is looking at the feasibility of putting up a 160-megawatt (MW) wind power project in Mauban, Quezon.

PMR is currently conducting studies to determine if the proposed renewable energy project is feasible in the area.

The proposed wind project will be undertaken by PMR Power in a tie-up with US firm Intergen, which is its major partner in the commercial development of the 460-MW Quezon coal-fired power plant.

The other stakeholders in the Quezon power project are US firms Covanta and GE Capital.

The blueprint of the planned wind power project was formally presented by PMR president Daniel E. Chalmers and QPPL general manager Frank A. Thiel to Energy Secretary Raphael P. M. Lotilla during his visit last weekend at their Quezon power facility.

Based on initial plans, the proponents will be constructing wind turbines that will just be four kilometers away from the coal-fired plant. This is seen as an advantage since this will already address the problem of transmission barriers.

The QPPL project comes with a 31-kilometer dedicated transmission line, built and funded by project sponsors, that connects directly to the Luzon grid via the Tayabas substation of its offtaker, the Manila Electric Co. (Meralco).

The proposed installation of wind turbines will entail some 100-meter deep drilling and each unit will be installed with 20 to 30 meters gap.

The plan will also call for the setting up of anemometers, which measure wind speed in miles per hour, in both Cavinti and Cagbalete islands in Mauban’s Lamon Bay to measure the potential of the areas.

It would take roughly two years to complete the study that was started in 2003 at the Cavinti site.

Preliminary studies show that the wind quality potential in the Cagbalete area is 20 to 30 times better than that of Cavinti.

Once completed, data gathered from both sites will be evaluated by the project proponents.

The results of the studies will also serve as basis for any decision to proceed with commercial development on the project.

For wind power projects, an availability of 35 percent can already be considered profitable

P5.7-B transmission link to end Cebu power shortage
By MYRNA M. VELASCO


CEBU CITY — The commercial operation of the uprated critical transmission network stretching from Leyte-Cebu and Cebu-Mactan will finally put to rest any apprehension of the covered areas on probable strike of power shortages, especially during the peak season on Christmas holidays.


The P5.7-billion worth Leyte-Cebu Interconnection Uprating Project and Cebu-Mactan Uprating Project was formally inaugurated by President Gloria Macapagal Arroyo here yesterday; and was assisted in the ceremonial switch on by Energy Secretary Raphael P.M. Lotilla and National Transmission Corporation President Alan T. Ortiz.

The two projects are considered the centerpiece transmission line link-up projects under the Visayas Transmission Augmentation Program (VISTA) which was designed by the state-owned transmission firm TransCo.

The LCIUP, costing P3.7 billion, was completed ahead of schedule and the CMIP which amounted to P2.06 billion, are being touted as "the realization of TransCo’s commitment to finally put an end to the power supply challenge in the island of Cebu" Ortiz has noted that so far, in the very young existence of TransCo as a spinoff entity from the National Power Corporation, these projects could be considered a solid proof to the company’s capability to keep up with targets in project implementation; one thing that prospective investors in its privatization could be looked at as a positive factor.

"This is a major accomplishment in TransCo’s short history as the capitalization required by these projects and their impact to the power situation in the whole of the Visayas are a testament to our ability to meet our commitments," he stressed.

These completed transmission backbone, he emphasized, will provide the power infrastructure that will help secure thousands of jobs and create even more employment opportunities in the region; which is considered an investment hub outside Metro Manila and Luzon.

The upgraded 230-kilovolt submarine cables in the Leyte-Cebu interconnection that is stretching 33.3 circuit kilometers from Tugas, Tabango in Leyte to Talisay, Daanbantayan in Cebu will be delivering much-needed power to parts of what used to be energy-short Cebu-Negros-Panay grid from the geothermal-rich field of Leyte.

Since the uprated line started delivering higher load, it was reported that the CNP posted the highest growth rate in power demand at 7.0-percent annually due to the booming economic activity in the region.

"With the completion of these projects, TransCo has secured the adequacy and reliability of electricity in the region for the next five to seven years," Ortiz further pointed out.

At the same time, the transmission firm assured that these projects will stabilize the power supply and guarantee secure, efficient and reliable electricity not only in Cebu, but also in Negros and Panay.

Data from the Department of Energy has indicated that the government was able to save roughly P260-million monthly by optimizing the use of the country’s geothermal resource instead of importing fuel for power generation. (MMV)

^^those windmill are like 200 feet high, is buko tree that tall.
may maliit rin na windmill at mataas na buko tree:) hehe

in general the taller the stricture and windmill the better, the wind velocity rises as a function of altitude but the hihger the turbine the greater the diameter of the blade so that you use a larger blade which is disproportinately more material (tower is cheap, blade is expensive). So for the location a balance must be found.

a buko tree can actually be used but not as a modern turbine but probably more like a farm turbine. the problem will notreally be the height as the buko tree can be quite tall but the stability as the tree tends to sway. but for own farm purposes you can probably put a small usable turbine there.

BTW
Good news for cebu, walanang blackout their connected to the grid again.

Another Good News for Subic. The power rate will be cut soon. This will definitely boost business growth and competitiveness.

Subic firms to soon enjoy low power costs

COMPANIES at the Subic Bay Freeport may expect their power rates to drop in the next few months as the Aboitiz-led Subic Enerzone Corp. (SEZ), which distributes power to the area, secured lower buying rates from the National Power Corp. and Mirant Philippines.

In a report Friday, Subic EnerZone, a consortium of Aboitiz Equity Ventures (AEV), Davao Light and Power Company, Mirant Philippines and San Fernando Electric Light and Power Company, announced that it may charge its mostly industrial and commercial clients by about P1.20 a kilowatt hour less beginning October this year.

Erramon Aboitiz, Subic Enerzone chair and AEV chief operating officer, explained that the company will be able to charge more affordable power rates after securing a favorable deal with its primary power suppliers.

Aboitiz added that Napocor and Mirant Philippines have both agreed to cut Subic Ener*zone’s electricity prices by as much as 66 centavos which, he said, will be passed to all the firm’s customers.

To date, SEZ’s system losses are down to 6.86 percent and customers pay 14.5 centavos less for every kilowatt-hour (kwhr) of their electricity consumption. SEZ inherited a 15 percent systems loss average from the Subic Bay Metropolitan Authority Utility Department when it took over SBMA’s power distribution system in October 2003.

“With the reduction of our distribution charge of 40 centavos per our DMSA [distribution management services agreement], the reduction of systems losses, and the renegotiation of our power supply, we have effectively reduced electricity prices by P1.20 a kwh,” Aboitiz said.

After undertaking a major rehabilitation program and installing new systems and equipment, SEZ managed to cut down its systems losses by almost 55 percent in the past two years.

The company has so far infused P200 million, with plans of investing another P50 million by the first quarter of 2006. The investment is part of its 2003 commitment that it will invest P350 million over five years to improve Subic’s power distribution system.
--Niel V. Mugas

P3-B power projects approved

The Cabinet-level Investment Coordination Committee of the National Economic and Development Authority has recently approved three power transmission projects worth more than P3 billion to improve electricity distribution in Visayas and Mindanao.

The committee has approved the P1.1-billion Sangali-Pitogo transmission line project in Zamboanga City, the P1.1-billion Gen. Santos-Tacurong transmission line project in Gen. Santos City and the P865.5-million Wright-Calbayog transmission line Project in Northern Samar.

State-owned National Transmission Corp. would be the lead agency in implementing the projects in consultation with the Department of Energy.

The Sangali-Pitogo project would beef up the Mindanao transmission grid to meet the increasing electricity demand of Zamboanga City, whose load requirement is expected to increase by 6.3% annually until the year 2015.

The project, which is expected to be completed in December 2006, involves the construction of a 32-kilometer, 138-kiloVolt, double-circuit steel pole transmission line from the Sangali substation to the Zamboanga City load center in Pitogo.

It also aims to expand the Sangali substation and the Lunzuran switching station and establish a new Pitogo substation. The project will be financed through the Miyazawa Fund, while the government would provide P386.94 million.

The Miyazawa Fund is a bilateral assistance provided by the Japanese government to cover trade financing, financing for the manufacturing sector, assistance for structural reforms and for social safety net.

It is a support package provided for Asian countries affected by the currency crisis, which started in July 1997, in overcoming their economic difficulties and to contribute to the stability of international financial markets.

Meanwhile, the Gen. Santos-Tacurong project is expected to expand power substations and replace old, wood pole-supported, single-circuit, 138-kiloVolt lines in southwestern Mindanao.

Out of the total project cost, P882.8 million will be funded by the Miyazawa Fund, and P204.8 million will come from the government. The project is scheduled to be completed by the year 2010.

The Wright-Calbayog project aims to improve the reliability and efficiency of power transmission to the northern part of Samar by ensuring system adequacy, reliability and stability of power delivery services in the Visayas grid.

"While Eastern Visayas has been exporting power to Luzon and the Visayas using steel towers, the transmission lines in the region, particularly in Samar Island, are still using wood pole structures, most of which are already rotten and dilapidated resulting in frequent power interruptions," the committee said in a report.

The Miyazawa Fund would provide P592.2 million, while the national government would shell out P273.3 million. The project is expected to be completed by 2008.

Mirant Philippines lights up Subic’s Grande Island
By Bebot Sison Jr.
The Philippine Star 11/14/2005

SUBIC BAY FREEPORT – Mirant Philippines has lighted up Grande Island following a switch-on ceremony led by Subic Bay Metropolitan Authority (SBMA) Chairman Feliciano Salonga and Administrator Armand Arreza.

"This ceremony highlights the commitments not only of the private sector, but the government sector in the development of this part of the Philippines. It is indeed gratifying that we are viewing today a step forward by providing power to a facility that will give comfort and pleasure to many of our visitors," Salonga said.

The 44-hectare Grande Island, which was once a heavily fortified outpost of the US military, is being developed by GFTG Holdings Corp. into a world-class tourist destination.

"As we switch on this submarine cable, we are also beckoning the golden age of electricity that would light up Grande Island," Arreza told The STAR.

"Without this submarine cable, Grande Island will not only be in the dark, but SBMA as well. Hopefully, this will be just one of the first of the many investments to make Subic more investor-friendly and more tourist-friendly," he added.

In a press statement, Mirant Philippines president JR Harris said, "We believe that the completion and energization of the new 2.5-kilometer cable goes far beyond its use to deliver electrons from the Camayan Point to power the lights and facilities of Grande Island resort."

He added, "The completion of this project underscores our commitment not only to Subic, but to the country as well."

The flow of electricity from Grande Island is made possible through a 2.5-kilometer submarine cable that stretches out from Camayan Point in Subic Mainland up to Grande Island. The cable is protected with installed switch gears at both ends.

Some two years ago, the SBMA signed a tripartite memorandum of agreements (TMOA) with the National Power Corp. and Mirant Philippines for the power cost reduction adjustments that would guarantee its locators the cheapest power rates in the country.

This will ensure SBMA locators a bulk electricity rate of a minimum of P0.15/kwh less than the current market price.

The power reduction scheme may be achieved with a 50/50 sourcing of power supply from Mirant and Napocor. As electricity accounts for a higher share of manufacturing costs compared to water, which accounts for less than one percent of production cost, this power cost reduction will more than offset the effect of the water rate increase.

The power will be sourced out with a 50/50 sharing from the Napocor-contracted independent power producers (IPPs) and the excess capacity of Mirant’s Sual Power Station in Pangasinan.

Mirant Philippines is a competitive international company that is in the power generating business. It produces and sells electricity in the United States, the Caribbean and the Philippines, and owns or leases more than 18,000 megawatts of electric generating capacity globally.

FORECASTING: The Philippine Energy Requirements Demand


RP needs new 4,500-MW supply
By JAMES A. LOYOLA (Manilla Bulletine)

The Department of Energy (DoE) expects the country will need an additional power capacity of 4,000 to 4,500 megawatts to meet growing demand by 2014, lower than initially projected.

Energy Secretary Raphael Perpetuo Lotilla said during the Power Forum organized by the Institute of Integrated Electrical Engineers that this is based on the DoE’s draft Philippine Energy Plan (PEP) for 2006 to 2014.

He added that the existing PEP 2005 to 2014 has projected a requirement of 8,630 megawatts in additional generation capacity by the end of planning period.

"Lower growth forecast in effect displaced the need for more power plants until a few years later," Lotilla explained noting that many of the commitments from power firms are still indicative and nothing has been finalized.

Lotilla said they are still looking at the same entities that had earlier signified interests to put up or expand new and existing power plants, respectively.

He earlier said that the energy department will do everything to encourage local and foreign investors to build up the country’s power generation capacity in view of a projected shortfall in power supply in some areas of the country before 2009.

Lotilla said they are making sure that regulatory framework and policies will allow investors to setup power plants or expand their existing power facilities, particularly in the Visayas and Mindanao areas.

According to the DoE’s power plan, the country’s requirement for new capacity would be around 2,850 megawatts until 2010, of which 750 megawatts by 2008 and 1,350 megawatts by 2010 will be for Luzon alone.

It added that some 250megawatts by 2008 and additional 150-megawatts by 2010 will be needed to address a shortage in the Visayas; while an aggregate capacity of 350 megawatts until 2010 or 150 megawatts by 2008 and 200 megawatts by 2009 will be needed to be established in Mindanao.

"The challenge remains in the Visayas. We still forecast a shortage in supply by around 2009 to 2010," Lotilla said adding that if Cebu-based distribution utilities decide to bridge the gap, then government hopes to see many participants in that process.

He pointed out that Visayas needs as many plants as it can build to avert a shortage in supply and further propel economic growth.

"The government wants to encourage investors to build power plants as it cannot dictate on them to expand their operations in the Philippines," Lotilla said.

Are there any pics of Bataan Nuclear Power Plant? I would like to see how it looks like.

WESM operator confident of a smooth start
By Donnabelle L. Gatdula
The Philippine Star 11/29/2005

New Zealand’s Marketplace Co. Pty Ltd. (M-co), the technical consultant for the wholesale electricity spot market (WESM) in the Philippines, is confident the Philippine Electricity Market Corp. (PEMC) will be able to smoothly operate the facility once it starts operations in January 2006.

In an interview with reporters who recently conducted a study tour of the Australia-New Zealand electricity spot market, M-co chief development officer Phil Bradley said: "We are definitely confident that the market operator will be ready by that time."

But Bradley admitted that like any other electricity market, a number of challenges still confront the Philippines in operating the WESM.

"The system has passed the final order after months and years of work. But, of course, we are not working on a perfect market, we have to be ready for some problems that may arise," he said.

One challenge, Bradley said, is the reliability of the country’s transmission and generation systems.

"These important components of the electricity system will definitely have an impact on the performance of the market. Transmission constraints will fundamentally affect electricity trading. Anything that has to do with power supply and demand will be a major challenge," he said.

The M-co executive, however, pointed out that these challenges are part of the process. "There is a process. Rules will have to be changed if they are not working anymore. If it does not work, change it."

Another challenge, especially during the initial stages of the WESM operation, is changing the "culture." "We need to create a culture that is appropriate. The critical task is how to change the old system to a new one and communicate the culture change," Bradley said.

M-co works with industries and governments around the world, developing and operating markets for commodities and services in diverse industries such as electricity, gas, environmental instruments and telecommunications. M-co delivers expertise in every aspect of creating and running a new marketplace -or in reforming and evolving an existing one.

M-co has services in Australia, New Zealand, Singapore, China, Korea, Taiwan, South Africa and the European Union.

In 2004, the National Transmission Corp. (TransCo) approved the awarding of the $8.47-million market management system (MMS) of WESM to ABB Inc.

TransCo also commissioned M-Co as WESM’s market operator (MO) for the trial operations. The WESM started its trial operations in Luzon and Visayas over the past few months.

Republic Act 9136 or the Electric Power Industry Reform Act, which restructures the power sector, mandates the establishment of the WESM.

Once in place, WESM will empower consumers to choose their supplier of electricity with the main goal of purchasing the least cost of power.

The creation of the WESM is expected to result in higher efficiency of service, transparency in the generation charges and in the long term, help reduce power rates. The demo market is intended to assist in the gradual implementation of the final WESM.

The establishment of the WESM is expected to bring down electricity cost by about 40 centavos per kilowatthour.

Biz groups push electricity spot market
By Donnabelle L. Gatdula
The Philippine Star 12/05/2005

Various business groups are pushing for the initial operations of wholesale electricity spot market (WESM) in January 2006 to finally take one step forward to the realization of the restructuring of the power sector.

In a forum hosted by the Energy and Clean Air Project of the United States Agency for International Development (USAID), Philippine Chamber of Commerce and Industry (PCCI) energy committee chairman Jose S. Alejandro said the implementation of WESM would help alleviate the problem of the industry particularly the high electricity rates.

"It is clear that we have to do something so that we can solve the dilemma of the power industry and also our concerns on affordable electricity rates," Alejandro said.

PCCI’s view is shared by other foreign business groups including the European Chamber of Commerce of the Philippines (ECCP) and the Australia-New Zealand Joint Chamber of Commerce.

Speaking on behalf of ECCP, Union Fenosa’s Emilio Vicens has urged the industry players to join hands in ensuring that the country’s electricity spot market would be able to meet the requirements of the industry.

In the same forum, the groups said they expect WESM to be able to prove its worth within one year of operation.

Other players that expressed support to the operation of WESM next year include: Manila Electric Co. (Meralco); the Philippine Independent Power Producers Association (PIPPA); Private Electric Plant Operators Association (PEPOA) and among others.

At the same time, the industry stakeholders are urging the energy regulators to reconsider its proposal to change the WESM’s design. "The Energy Regulatory Commission (ERC) should stick to the bid-based pricing," they said.

According to the groups, the ERC should focus on approving the rules and guidelines that would facilitate the smooth implementation of the WESM such as the price determination methodology and market fees, among others.

Meanwhile, business groups also called for the market operator, Philippine Electricity Market Corp. (PEMC) to exert efforts in addressing various concerns of the industry which arose during the WESM trial operations conducted in Luzon and Visayas in the past months.

The issue on WESM operation is just one of the concerns raised during the forum. The other major concerns include the timetable for the implementation of the open access; the National Power Corp. (Napocor) privatization; and how to resolve the expensive power rates in the country.

7-millionth house to get power under NEA rural electrification program
By Donnabelle L. Gatdula
The Philippine Star 12/06/2005

The National Electrification Administration (NEA) will energize the seven-millionth house under the Arroyo government’s overall rural electrification program.

President Arroyo herself will lead the ceremonial switch-on for the seven-millionth house connected through one the country’s 119 rural electric coops, the Bukidnon II Electric Cooperative Inc. (BUSECO) tomorrow, Dec. 7, 2005.

Department of Energy (DOE) Secretary Raphael P.M. Lotilla, NEA administrator Edita S. Bueno, and officials from other attached agencies of the DOE will also attend the ceremony. Officials and employees of electric cooperatives (ECs) in Region X are also expected together with the local officials of Bukidnon.

The seven-millionth house connection is located in Sitio Kihare, Kalanawan, Manolo Fortich, Bukidnon, owned by the family of Epifanio Montefalcon Jr.

Montefalcon is a farmer while his wife, Susan is a barangay health worker. The family is a lifeline user. A gift package for the family from the President includes a 21- inch television set, grocery items plus a six-month free electric consumption from their electric coop, BUSECO.

BUSECO, one of the two ECs in the province of Bukidnon, currently serves 48,562 connections or 54 percent covered in its 171 barangays and 10 municipalities within its coverage area.

On the rural electrification program’s 36th year, all the 1,451 towns/cities in the country covering 33,252 barangays have been electrified by the 119 ECs registered under, and supervised by the NEA. A total of 22 provinces have attained 100 percent barangay energization.

To date, barangay energization has reached 92 percent while house connection level is 63 percent.

President Arroyo lauded the NEA and the ECs for their unrelenting work of energizing the countryside, thus bringing the benefits of electricity to rural families.

Rural electrification is included as one of the President’s 10-point agenda to spur socio-economic development with the setting up of small and medium-scale livelihood projects being made possible with the availability of power in the barangays.

----------------------------------

WESM commercial operation awaited

Finding a middle ground on how mandated policy reforms for the power industry can move forward, local and foreign business organizations have reached a consensus to push for the commercial operation of the Wholesale Electricity Spot Market (WESM) next year.

"It is clear that we have to do something so that we can solve the dilemma of the power industry and also our concerns on affordable electricity rates," said Jose S. Alejandro, chairman of the energy committee of the Philippine Chamber of Commerce and Industry (PCCI); in a roundtable discussion his group has hosted in collaboration with the Energy and Clean Air Project of the United States Agency for International Development.

The sentiment of the PCCI was also supported by foreign business groups which were present at the forum, including the European Chamber of Commerce of the Philippines and Australia-New Zealand Joint Chamber of Commerce.

Emilio Vicens of Union Fenosa and representing ECCP, emphasized that industry stakeholders should exert utmost effort to ensure that the WESM would work efficiently and keep up with the expectations of the market.

On the whole, the business groups along with the private sector players of the power industry are giving WESM at least one year from commercial operation to prove its tenability. The others supporting the move are giant utility firm Manila Electric Company; the Philippine Independent Power Producers Association, Private Electric Plant Operators Association and a score of power generation companies.

Similarly, most of the industry stakeholders urged that the Energy Regulatory Commission (ERC) should drop its current bid of changing WESM’s design and the market shall be allowed to just stick with bid-based pricing.

The ERC is instead called upon to concentrate on acting on the remaining rules and guidelines needed to steer the WESM’s commercial operation; such as the Price Determination Methodology and Market Fees, among others.

Business and power sector players, however, emphasized that while they are enthusiastically supporting WESM"s commercial operation, they are also calling on the market operator, Philippine Electricity Market Corporation (PEMC), to do its best in addressing the concerns they have raised during series of discussions; especially the looming market concerns observed at the Trial Operations Program.

Operators of power facilities disclosed that one of the major issues they have been asking PEMC to act on would be on dispatch; noting that during the TOP simulations, they have detected some erratic behavior in market demand and if this is not carefully managed, the abnormal ramping up and down of their generation units might tear up the facilities.

It was also emphasized that while WESM’s commercial operation is gaining ground, they noted that public perceptions should also be put in context that the spot market will not necessarily bring down prices; but is just indispensable in bringing about market signals so badly needed by the power industry and even for businesses so they can keep pace with their investment decisions.

On one hand, they pointed out that while the dominance of the National Power Corporation (NPC) may just be there for a while given the delays in its privatization, they have noted that the level of transparency that would be brought to the surface by the power pool would reveal the inequities of the market; and as a result, such would be challenged eventually.

The bid for the WESM’s commercial operation is one of the four agenda agreed upon to be presented to government agencies involved in the implementation of policy reforms for the power sector, including the Department of Energy, Power Sector Assets and Liabilities Management Corporation, ERC and even the Joint Congressional Power Commission in the next roundtable discussions.

The other positions taken are: a) to urge government to draw up a more realistic timetable for the implementation of open access; b) to move ahead with NPC privatization; and c) to sort out alternative strategies on how the business sector’s burden of expensive power rates could be eased on the interim.

And with the privatization exercise confronted withsnags, it was noted that the WESM would also provide indications on the proper timing for the implementation of open access.

taken from mb.com.ph...

DoE gets new wind farm proposals


By MYRNA M. VELASCO

Despite identified constraints in project implementation, the Department of Energy (DoE) divulged that it was able to corner some fresh interest from investors for the development of at least 16 wind farmsites.



Listed for prospective wind power facilities are those in Carmen and Oslob, Cebu sites to be developed by Transnational Diversified Corporation, Asia One Power Corporation and Cammon Windsolar Energy, Inc.; Bago City and Cauayan, Negros Occidental by FirstGen Renewables, Inc.; AilenLavasares and Calbayog in Northern, Samat by Benguet Corporation; Siquijor site by Asia One Power Corporation; Pasuquin, Ilocos Norte by Transnational Diversified Corporation; Bantay, Ilocos Sur by the Philippine National Oil Company-Energy Development Corporation; Bani and Bolinao, Pangasinan by Nation Petroleum Corporation; Maconacon, Isabela and Tagaytay, Cavite by Transnational Diversified Corporation; San Andres, Quezon by Nation Petroleum Corporation; Mercedes, Camarines Norte by TransAsia Renewable Energy Corporation and Daet, Camarines Norte by Coastal Power Development Corporation.

The others are those in Abra de Ilog; Pagudpud, Ilocos Norte; Malay, Aklan and Nuventa, Surigao del Sur by PNOC-EDC; Carranglan, Nueva Ecija by Coastal Power; Lamon Bay in Mauban, Quezon by Pacific Manufacturing Resources; Caliraya, Laguna by CEO Incorporated and Nation Petroleum; Pandan, Antique by First Gen Renewables; and San Remigio, Antique by Transnational Diversified Corporation.

Department of Energy director for Energy Utilization Management Bureau Mario C. Marasigan said some pre-commercial contracts (PCC) are now being negotiated; subject to finalization of detailed engineering design and identification of the scheme of development; which is similar to a higher level of feasibility study.

He added that it remains a target for the energy department to install about 425 megawatts of wind-based power projects in the next 10 years; though realizing that getting there would entail dealing with some hurdles.

Energy secretary Raphael P.M. Lotilla acknowledged that there are a lot of issues and concerns yet to be resolved for all of the targeted projects; including financing, connectivity to the grid; and delivery mechanism for generated electricity.

Making reference to the 25-megawatt pioneering venture of Northwind Power Development Corporation, the energy chief noted that it would take a lot of courage for any investor to plunge into wind power project; but he stressed that this company’s experience could be taken as a model by other interested investors.

For instance, one of the investment practice pioneered in its wind project development initiative is tapping guarantee from Danish International Development Agency (DANIDA) and was matched by a counter-guarantee from Philippine Export-Import Credit Agency.

For its part, the energy secretary vowed that they would continue to provide incentives as enunciated under the Investment Priorities Plan.

Lotilla also opined that "there is a need for the wind farms to be geographically scattered so that at any time during the day, there is constant power coming from the windmills."

Another specific area that the government is focusing attention to is on the passage of the Renewable Energy Bill; which is still pending for deliberations in Congress.

In the first wind contracting round last year, the DoE offered 16 wind sites; and this culminated in the signing of pre-commercial contracts for five areas with private investors.

The value-creating gain from advocating such policy, it was noted, will come in the sense that this will provide impetus to the country’s bid to significantly cut down its reliance on imported energy resources.

The existing set of perks granted to investors in the development of renewable energy resources are income tax holidays and exemptions from or reduced real property tax, tax on domestic capital, and import duties. (MMV)

DoE gets new wind farm proposals
By MYRNA M. VELASCO

Despite identified constraints in project implementation, the Department of Energy (DoE) divulged that it was able to corner some fresh interest from investors for the development of at least 16 wind farmsites.

Listed for prospective wind power facilities are those in Carmen and Oslob, Cebu sites to be developed by Transnational Diversified Corporation, Asia One Power Corporation and Cammon Windsolar Energy, Inc.; Bago City and Cauayan, Negros Occidental by FirstGen Renewables, Inc.; AilenLavasares and Calbayog in Northern, Samat by Benguet Corporation; Siquijor site by Asia One Power Corporation; Pasuquin, Ilocos Norte by Transnational Diversified Corporation; Bantay, Ilocos Sur by the Philippine National Oil Company-Energy Development Corporation; Bani and Bolinao, Pangasinan by Nation Petroleum Corporation; Maconacon, Isabela and Tagaytay, Cavite by Transnational Diversified Corporation; San Andres, Quezon by Nation Petroleum Corporation; Mercedes, Camarines Norte by TransAsia Renewable Energy Corporation and Daet, Camarines Norte by Coastal Power Development Corporation.

The others are those in Abra de Ilog; Pagudpud, Ilocos Norte; Malay, Aklan and Nuventa, Surigao del Sur by PNOC-EDC; Carranglan, Nueva Ecija by Coastal Power; Lamon Bay in Mauban, Quezon by Pacific Manufacturing Resources; Caliraya, Laguna by CEO Incorporated and Nation Petroleum; Pandan, Antique by First Gen Renewables; and San Remigio, Antique by Transnational Diversified Corporation.

Department of Energy director for Energy Utilization Management Bureau Mario C. Marasigan said some pre-commercial contracts (PCC) are now being negotiated; subject to finalization of detailed engineering design and identification of the scheme of development; which is similar to a higher level of feasibility study.

He added that it remains a target for the energy department to install about 425 megawatts of wind-based power projects in the next 10 years; though realizing that getting there would entail dealing with some hurdles.

Energy secretary Raphael P.M. Lotilla acknowledged that there are a lot of issues and concerns yet to be resolved for all of the targeted projects; including financing, connectivity to the grid; and delivery mechanism for generated electricity.

Making reference to the 25-megawatt pioneering venture of Northwind Power Development Corporation, the energy chief noted that it would take a lot of courage for any investor to plunge into wind power project; but he stressed that this company’s experience could be taken as a model by other interested investors.

For instance, one of the investment practice pioneered in its wind project development initiative is tapping guarantee from Danish International Development Agency (DANIDA) and was matched by a counter-guarantee from Philippine Export-Import Credit Agency.

For its part, the energy secretary vowed that they would continue to provide incentives as enunciated under the Investment Priorities Plan.

Lotilla also opined that "there is a need for the wind farms to be geographically scattered so that at any time during the day, there is constant power coming from the windmills."

Another specific area that the government is focusing attention to is on the passage of the Renewable Energy Bill; which is still pending for deliberations in Congress.

In the first wind contracting round last year, the DoE offered 16 wind sites; and this culminated in the signing of pre-commercial contracts for five areas with private investors.

The value-creating gain from advocating such policy, it was noted, will come in the sense that this will provide impetus to the country’s bid to significantly cut down its reliance on imported energy resources.

The existing set of perks granted to investors in the development of renewable energy resources are income tax holidays and exemptions from or reduced real property tax, tax on domestic capital, and import duties. (MMV)

I think GEOTHERMAL ENERGY should be harness above all!! Wind Power is great too, but the Philippines should've been the world's largest user of Geothermal energy long time ago..how come we're still second to the US?!! Lack of investors and initiative from the government??

Lack of investors Espma.

70,000 potential MW from wind farms, WOW!

ohh ok well hopefully that'll improve soon ay? I read somewhere that Philippines has great potential in geothermal energy..

By the way..is the Philippines the leader of Wind Energy in SEA at the moment???

i think we are the leader in SEA and soon i hope we can be a leader in the world in terms of harnessing wind energy

Molinos de Bangui, Ilocos Norte

http://i14.photobucket.com/albums/a328/nomdeusuario/bangui2.jpg

Windmills of Bangui, Ilocos Norte

http://i14.photobucket.com/albums/a328/nomdeusuario/bangui1.jpg

http://i14.photobucket.com/albums/a328/nomdeusuario/bangui.jpg

^^ Cool. :okay: I didn't realize we had these.

^nice found manila

Really nice Manileno, ang ganda talaga!!!

they should also put up windmills in Batanes (typhoon zone?) and other places na maraming hambog. Batangas? Ala eh LOL jk

Windmills of Bangui, Ilocos Norte

http://i14.photobucket.com/albums/a328/nomdeusuario/bangui1.jpg



What a beauty! Nature communes with technology.

when man works with nature, wonderful things happen

RP aims to increase gas production
By MYRNA M. VELASCO

Though it may seem impossible at this point, the Philippines still nurtures the idea of setting out a large-scale target of clinching oil and gas discovery that would match the level of commercial production already achieved by its big-time neighbors in the Southeast Asian region.



There are three potential high-frontier sites listed that could yield sizeable volume of oil and gas reserves; and these are in Southwest Palawan, East Palawan, and Sulu Sea.

According to Philippine National Oil Company (PNOC) President Eduardo V. Manalac, East Palawan and Sulu Sea are surrounded by blocks that have near or similar oil gas geology to that of acreages in Malaysia, Brunei and Indonesia.

It would be noted that these three countries have been occupying a key position in the world oil and gas market because of the vast reserves they have already discovered and developed. In fact, Indonesia is hailed as the only Asean member nation which cornered membership with the powerful Organization of Petroleum Exporting Countries.

To shore up activities in oil and gas exploration and development, the Philippine government has been re-designing various contracting schemes, so it could entice interest of investors.

With what the Department of Energy (DoE) devised as a contracting round, some $200 million worth of investments have been secured from the 11 contracts offered for the exploration and drilling of areas covering about 6.871 hectares.

Since 2002, DoE was able to award 17 contracts; which are either in the form of geophysical survey and exploration contract (GSEC) or those that are already elevated into service contracts (SC).

One of the major challenge the government is putting itself into is the probable discovery of another reserve that would match the production level of its biggest gas field to date, the $4.5 billion Malampaya project.

Recently, the PNOC inked a tripartite deal with China National Offshore Oil Corporation (CNOOC) and PetroVietnam for a joint marine seismic undertaking at the South China sea, which also cover some portions of the disputed Spratly islands.

It would be noted that the Philippines is positioning itself among the claimants of the said disputed territory, along with China, Taiwan, Malaysia and Vietnam. And while the three countries have agreed to enter into such undertaking, they have clarified early on that the seismic survey work is being pursued without them giving up their respective territorial claims.

Another partnership is also being between the Philippines and Indonesia for oil and gas exploration venture in Celebes sea.

In recent years, the Philippine government set among its priority to expand its resolve in discovering gas reserves, thus, setting the Malampaya field into commercial development; and for which its output has been committed to run some 2,700 megawatts of power capacity for the next 25 years.

The Malampaya field, which officially commenced commercial operation in October 2001, is located in northwest Palawan within the South China sea. It was estimated that it could yield up to 4.0 trillion cubic feet of natural gas reserves.

Aside from applications for the power sector, the government is also exerting efforts to expand the market of natural gas, to include commercial/industrial and the transport sectors.

A policy framework is currently being prepared by government for the emerging natural gas industry as it sees its wider utilization in various sectors in the near term. (MMV)

RP's biggest conglomerate ventures into power sector
By CAI U. ORDINARIO, The Manila Times Reporter

After property development, banking, electronics, telecommunications and water distribution, the Ayala Corp. is now venturing into the power sector.

In a disclosure to the Philippine Stock Exchange, the Philippines’ biggest conglomerate said it has filed with the Securities and Exchange Commission the incorporation papers of a special purpose company.

The new company named Michigan Power Inc. will be used as a vehicle for Ayala Corp.’s possible foray into the energy sector.

"Please be informed that as part of the company’s study to explore potential investments in the power sector, we have filed with the Securities and Exchange Commission the incorporation papers of a special purpose company named ‘Michigan Power Inc.’ as a vehicle for such potential investments in the power sector," the company said in its disclosure to the local bourse on Thursday.

An Ayala Corp. source said the new company would be 100-percent owned by the conglomerate. The new firm, however, has yet to line up projects or any acquisitions.

Ayala Corp. is the holding firm of the Ayala Group of Companies and derives its income principally from its various stock investments. Among its units are Ayala Land Inc., Ayala Automotive Holdings Corp., Bank of the Philippine Islands (BPI), Integrated Microelectronics Inc. (IMI), Globe Telecom Inc. and Manila Water Co. Inc.

As of the third quarter of this year, Ayala Corp. was sitting on a pile of about P30 billion in cash and cash equivalents. Last month, its subsidiaries, Pameka Holdings and BPI, sold their combined stake in an Indonesian insurance firm for $8.24 million. Proceeds of the sale were meant to settle outstanding obligations.

As of end-September, the conglomerate’s short-term debt stood at P1.7 billion, while its long-term obligations, less the P3.45 billion falling due within the year, amounted to P50 billion.

Ayala Corp.’s planned foray into the power sector comes at a time when government is hard-pressed selling the National Power Corp.’s generation assets. Under the Electric Power Industry Reform Act, the government is required to sell at least 70 percent of state-run NAPOCOR’s power plants before the establishment of an open market for the purchase and sale of electricity.

Open access is envisioned to inaugurate a regime of cheaper electric service.

The sale of NAPOCOR’s generation assets is also aimed at trimming the power firm’s losses, which the government has assumed by guaranteeing and absorbing the company’s debts.

Besides the power sector, Ayala Corp. is also mulling an expansion of its interests in water distribution. Its unit Manila Water, which early this year went public, may bid for the government’s 84-percent stake in Maynilad Water Service Inc.

The former Lopez-led utility controls the West zone of Metro Manila’s water concession, while Manila Water manages the East zone.

PNOC to undertake 4 geothermal projects
By Donnabelle L. Gatdula
The Philippine Star 12/12/2005

State-owned Philippine National Oil Co. (PNOC) has lined up four geothermal projects in the next five years that may apply under the Clean Development Mechanism (CDM) program of the World Bank.

PNOC president Eduardo V. Mañalac said the projects with total capacity of 330 MW are Rangas/Tanawon; Mt. Apo Greenfield; Cabalian and Dauin. All are located in Mindanao.

"All of these projects are potential CDM projects," he said.

Mañalac said these projects would require a lot of financing assistance as it would need about $2 million to develop a one-megawatt capacity of geothermal power.

The CDM is a flexible mechanism established by the Kyoto Protocol that allows public and private entities in developed countries to purchase greenhouse gas emission reductions from a project in a developing country.

Under the Kyoto Protocol, 39 industrialized countries committed to reduce their collective greenhouse gas (GHG) emissions by at least five percent compared to 1990 levels by the period 2008-2012.

Last week, the Philippines, through PNOC-Energy Development Corp. (EDC – the geothermal development arm of PNOC – took a further step towards reducing greenhouse gas emissions with the signing of an emission reductions purchase agreement (ERPA) for the Nasulo Geothermal Power Project.

The 20-megawatt Nasulo project, which will be commissioned on February 2008, is expected to have a lifespan of 20 years and would run as a merchant plant.

The construction of the project would be funded by the Development Bank of the Philippines (DBP) through a P1.4-billion loan.

The project, located in the Valencia, Negros Oriental, will be the first geothermal project in the country that would benefit from the Clean Development Mechanism (CDM) program.

Aquino said they have received proposals from Alstom Power New Zealand, Marubeni Corp., Kanematsu/Hyundai Engineering and Ormat International to build the plant.

"We at PNOC-EDC are proud and happy that the Nasulo geothermal project will possibly hold the distinction of being the first geothermal project to benefit from the CDM program. Running clean energy has been made profitable through this program," Aquino said.

Amsberg, for his part, said "when it comes to the potential impacts of global warming on the well-being of people, all nations are, so to speak, in the same boat. The emission reductions purchase agreement is a small but significant step by the Philippines to be part of a global effort to keep the boat afloat.

http://www.pwetko.org/gallery/albums/userpics/normal_IMG_1890.JPG
far away, they seem so small...but guess again

http://www.pwetko.org/gallery/albums/userpics/normal_IMG_1891.JPG
wow!

http://www.pwetko.org/gallery/albums/userpics/normal_IMG_1900.JPG
to give you an idea how large that steel column is...

more pictures to follow...

oi, ok jan. ganda ng lugar! mukhang enjoy na enjoy buong barangay.

cool pix apiong. Can anyone go into the towers though? So malakas ba talaga hanging diyan.

Great pictures Apiong! Good to finally see Bangui windmills! Thanks for sharing. :)

Electrification of additional 21 remote Mindanao villages set

The electrification of additional 21 barangays in conflict-ridden areas of the Autonomous Region for Muslim Mindanao (ARMM) is all set for implementation next year with the government already committing funding to it.

Through a Memorandum of Agreement (MoA) signed between the Department of Energy (DoE) and Winrock International under the Alliance for Mindanao OffGrid Renewable Energy (AMORE) program, the required financing of P21 million for the project has already been formally earmarked.

The AMORE program is being carried out through a partnership among the United States Agency for International Development (USAID), Mirant Philippines Foundation, Inc., the DoE, the Autonomous Region in Muslim Mindanao, and Winrock International, and has been intended as one way to promote peace and progress in Mindanao through sustainable electrification of poor, remote, conflict-affected communities that cannot be connected to the power grid with renewable energy systems such as solar and microhydro.

Winrock International officer Chris Kopp noted that while there are challenges they have been encountering in the project’s implementation, they are bent on doing more for the AMORE program.

As set out in the agreement, the DoE shall provide the program funding; and the selection of barangay-beneficiaries shall be based on the DoE-selected unelectrified, offgrid barangays in Mindanao. This will be treated as part of the DoE’s Expanded Rural Electrification Program up for execution until September 30, 2009.

Both the Philippine’s energy department and Winrock shall take effort to jointly develop a mode of implementing sustainable electrification in these barangays using renewable energy and with private-sector participation.

The government has been re-focusing policy directions on the utilization of renewable energy as an alternative source of power to electrify poor communities in rural remote areas where grid extension is not immediately feasible.

In tandem with this, they are also pursuing the creation of cooperative programs with the private sector for missionary electrification, including evaluation, assessment, and identification of barangays for electrification as well as procurement and installation of appropriate renewable energy systems.

From July 2002 to date, the AMORE program has already electrified 227 offgrid, conflict-affected communities in Mindanao, predominantly in the ARMM, both with photovoltaic and microhydro power systems.

For this, they were able to organize and train 227 community associations to operate and maintain the installed renewable energy systems; and these associations also emerged financially-viable with them raising approximately P10.9 million in operations and maintenance (O&M) funds as of this time.

Recognizing that the ARMM area is the least electrified region in the country and home to the poorest and most conflictstricken, the project sponsors noted that the provision of electricity would somehow alleviate poverty incidence; when eventually this will fuel economic growth in the covered areas.

As mandated, the DOE has to implement the government’s Rural Power Project (RPP), which aims to support the implementation of key reforms and priority investments to improve quality of life in rural areas through the provision of reliable, affordable and adequate energy services in partnership with the private sector.

Winrock, on the other hand, shall explore the viability of supporting the DoE policy of increased focus on sustainable commercial approaches to renewable energy-based electrification. (MMV)

RP to save $600M yearly by using alternative fuels
By Donnabelle L. Gatdula
The Philippine Star 12/25/2005

The Department of Energy (DOE) expects to realize annual foreign exchange savings of over $600 million from the use of alternative fuels.

DOE data shows that these saving will be realized by utilizing compressed natural gas (CNG), coco-methyl ester (CME) or coco-biodiesel and ethanol.

The DOE said savings from CNG would amount to $106.36 million while savings for the use of coco-biodiesel would reach $205 million and about $294 million will be realized from using ethanol.

The $106.36 million savings would be realized if the country is able to use 5,000 CNG-run buses as this will displace a total of 222.8 million liters of diesel.

If the government mandates the use of one percent blend of coco-biodiesel, forex saved will reach $41 million but at five percent blend, the savings will increase to $205 million.

On a nationwide basis, the diesel displacement at a five percent blend of coco-biodiesel will be 429.4 million liters.

A mandated five percent blend of ethanol, on the other hand, will result in a gasoline displacement of 236 million liters and a savings of $129 million. The level of savings will increase if the mandated blend is placed at 10 percent for a savings of $293.85 million.

A Biofuels Act has passed Third Reading the House of Representatives. By early next year, the Senate is expected to start deliberations on the bill.

Senators Pia Cayetano, Miriam Defensor-Santiago and Ralph Recto have submitted their respective versions of the Biofuels Law.

Cayetano’s proposed legislature calls for the regulation of the use of diesel fuel by requiring the mandatory use of more efficient and environment-friendly biodiesel.

The Cayetano bill pushes for the mandated use of one percent blend CME diesel or biodiesel on all motor nationwide starting Jan. 1, 2007. This shall be increased to two percent by January 2010.

Posted: 1:03 AM | Dec. 28, 2005
Ronnel W. Domingo
Inquirer

THE BOARD OF INVESTMENTS HAS granted a four-year tax holiday to a facility that generates power and steam by burning rice husk.

Trade Undersecretary and BOI managing head Elmer C. Hernandez said the P154.9-million co-generation plant was given pioneer status, which qualifies proponent La Suerte Rice Mill for fiscal and non-fiscal incentives aside from the tax break.

Hernandez said the BOI referred the project to the Department of Energy as part of the process of granting pioneer status to energy projects.

Under the 2005 Investment Priorities Plan, power generation projects using renewable energy sources, as well as co-generation project, shall be classified as pioneer in status.

Projects with pioneer status are entitled to a six-year tax holiday.

Hernandez said the project secured last November a certificate of endorsement from the DOE, which said the power plant should enjoy incentives in line with the policy of encouraging the private sector to promote the development, use and commercialization of non-fossil fuel based, renewable energy systems and technologies in the country.

The planned facility would use La Suerte's waste rice hull from its mill in San Manuel town in Isabela.

The mill will be the sole user of the plant's steam output of 1.62 metric tons an hour and electricity yield of up to 1 megawatt.

Also, excess power output would be sold to the nearby Green Harvest Rice Mill.

The lone owner of La Suerte, Reynaldo Tan, would fund the project with P38.7 million in equity and P116.2 million in borrowings.

La Suerte's co-generation plant, which would run round-the-clock, six days a week, is expected to improve the quality and reliability of power supply for the rice mill.

It will also lower the cost of power and of rice husk disposal; meet the new demand for power and steam with the ongoing expansion of the mill; possibly create new revenue from the sale of rice husk ash; and possibly bring in revenue from the sale of carbon credits.

The so-called carbon credits, or greenhouse gas emission reduction credits, is a mechanism where developed countries that could not reduce their GHG output--as spelled out in the Kyoto Protocol--could buy credits from projects in developing countries.

*****

One concern I see from this particular project is the low equity that the investor is bringing in. It only invests in the minimum of 25% equity in infrastructure projects...

Another concern is:
How is burning rice husk supposed to bring down greenhouse gas emissions? Isn't that also going to release greenhouse gases? Someone please tell me I'm wrong...

Germany’s KfW sets release of feasibility studies on RP wind power projects
By Donnabelle L. Gatdula
The Philippine Star 01/04/2006

German export finance agency Kreditanstaldt fuer Wiederaufbau (KfW) is set to release next month the results of its feasibility studies on potential wind power projects in the country, a ranking energy official said.

"KfW studies will be out by February 2006 on Boracay, Nubenta and Pagudpud," PNOC-Energy Development Corp. (EDC) president Paul A. Aquino said.

EDC is planning to put up a wind power plant in Pagudpud, Ilocos Norte. Two more power facilities are being eyed in Boracay, Aklan and Nubenta in Surigao del Norte.

But the company has to wait for the results of the feasibility studies being financed by the German firm before pushing through with these projects.

The state-owned power development firm is also tapping the Spanish government to finance the feasibility studies for wind power projects in the islands of Camiguin, Siargao, Dinagat and Palawan.

By the second half of 2004, EDC will install meteorological masts in Northern Luzon, Occidental Mindoro and Surigao and will install masts in Sorsogon, Antique, and Butuan City.

In 1999, the Department of Energy (DOE) tapped EDC to undertake a showcase wind power project in Ilocos Norte to demonstrate the technical and economic viability of developing the Philippines wind resources for power generation.

With this mandate from DOE, EDC proceeded to secure the necessary permits approvals to construct a 42-megawatt (MW) wind farm in Burgos, Ilocos Norte. On May 2000, the first environmental compliance certificate for the construction of a wind farm was issued to EDC in a record time of three months.

In March 2002, EDC obtained financing in the form of a ¥5.8-billion soft loan from the Japan Bank for International Cooperation (JBIC) to develop wind power in the country.

The Philippines is located on the board of the Asia Pacific monsoonal belt and has good potential for wind power development. In 1994, a study conducted by the United Nations Industrial Development Organization (UNIDO) estimated the Philippines’ wind power potential at about 250 MW.

The United States National Renewable Energy Laboratory (NREL) prepared a wind resource analysis and mapping study of the Philippine archipelago identifying potential wind resource areas and estimating the value of the wind resource at 76,600 MW. The study however, did not take into consideration transmission grid accessibility constraints and other factors such as the absence or presence of access roads, usable powers and vegetative cover.

Recently, the University of the Philippines Solar Laboratory further rationalized the NREL study by screening the areas for viability in terms of wind power development.

The study limited potentially viable areas to those with power densities of at least 500 watts per square meter and an incremental transmission cost of not more than 25 percent of the projects investment cost. The application of these two criteria reduced the wind power development potential of the Philippines to a more realistic level of 7,400 MW.

There are, however, issues confronting the wind power development in the country such as the lack of appropriate funding; grid accessibility; interconnection problems caused by the intermittent nature of the resource; lack of technical, financial and legal expertise; bias towards conventional power sources; subsidized energy tariffs; lack of government policies and incentives favoring the development of wind power; and country’s location in the typhoon belt.

Dutch company invests in
Palawan oil, gas exploration

By Niel V. Mugas, Reporter

NETHERLANDS-BASED Vitol Group will infuse nearly P4 billion in the Philippines to reactivate oil wells and resume oil and gas production in the northwest Palawan basin.

Energy Undersecretary Guillermo Balce said Vitol, an international marketer of petroleum products, will be infusing about $70 million to finance the reopening of the wells in the Galoc and West Linapacan areas, which are covered by service contract (SC) 14.

Although oil and gas production in the Galoc and West Linapakan wells ended in the nineties, a significant volume of fossil fuels was recovered.

However, this time around, Balce said that the consortium headed by Australian-owned Nido Petroleum, which holds the right to explore and produce from the SC 14 areas, is determined to reactivate the wells to recover a much bigger volume of oil and gas.

Members of the Australian-owned consortium include Oriental Petroleum and Minerals Corp., Alcorn Phils., Alcorn Gold Resources, Linapacan Oil, Gas & Power, Altisima Energy; Basic Petroleum and Minerals, Petroenergy Resources, Phoenix Energy, and Philodrill Corp.

Team Oil and Cape Energy, however, will operate the Galoc field after signing a farm-in agreement with the consortium.

Balce said a combined 77 million barrels of crude oil has yet to be recovered from Galoc and West Linapacan.

“This is even bigger than the Malampaya oil rim, which contains only about 25 million barrels,” Balce said.

The consortium is also planning to reopen and reactivate the wells for oil and gas production by the second half of this year, he said, adding that the consortium will only need to secure environment compliance certificates from the environment department to get the green light.

It will also need to rent an oil rig, which costs $150,000 to $400,000 daily.

Besides its interests in the African oil industry, the Vitol Group is one of the world’s foremost oil trading companies with a wide range of activities encompassing exploration, refining, and shipping. Its product portfolio includes a range of fuels, chemicals, and liquefied petroleum gas.

Mirant’s Wall St comeback to boost RP unit — Lotilla
By Donnabelle L.Gatdula
The Philippine Star 01/13/2006

US energy firm Mirant’s operations in the Philippines will likely be boosted by its relisting on the New York Stock Exchange (NYSE) after it emerged from bankruptcy protection last Jan. 3, Energy Secretary Raphael Lotilla said.

"Mirant values its assets in the Philippines. I believe they will remain committed," Lotilla said.

An industry source said Mirant Corp.’s Wall St. comeback will further strengthen the power firm’s position in the electricity market in the Philippines.

Mirant Philippines is the largest private power producer in the country, supplying over 2,000 megawatts (MW) of power.

"Aside from strengthening its current position in the power industry, the relisting of the shares in the NYSE will also boost investors’ confidence in the company and will improve its credit outlook," the source said.

The company’s common stock is listed under the symbol MIR. Edward R. Muller, Mirant chairman and chief executive officer, rang the opening bell to signal the start of the stock’s relisting on the exchange.

The company has earlier completed the requirements necessary to usher in its plan of reorganization, including securing $2.35 billion in exit financing.

Under its reorganization plan, Mirant will convert more than $6 billion of debt into equity in the reorganized company and will nearly halve its overall debt.

Mirant’s US and Canadian units filed for bankruptcy protection on July 14, 2003 but its other operations, including Mirant Philippines, did not follow suit.

Mirant Philippines president and CEO J.R. Harris said the emergence and relisting of the parent firm will position Mirant for future success in the nation’s electricity market.

"With our corporate parent out of bankruptcy, we are better able to position Mirant as a stronger player in a vital industry in this country," Harris said.

Harris said while the Chapter 11 bankruptcy filing in the US did not in any way affect the operations of Mirant’s Philippine business units, "it was a long and challenging process for the entire Mirant organization."

Mirant Philippines has always been a strong partner in providing reliable and cost effective electricity to help meet the country’s development needs.

In 2004, it initiated the largest rural electrification program ever implemented by a private corporation, benefitting over 1,000 barangays nationwide.

The power firm is committed to undertake the electrification of an additional 500 barangays this year as part of its corporate social responsibility program.

Mirant Philippines also has a stake in the 1,200-MW Ilijan natural gas project.

Mirant Corp. is a competitive energy company that produces and sells electricity in the United States, the Caribbean, and the Philippines. It owns or leases more than 18,000 MW of electric generating capacity globally and operates an asset management and energy marketing organization from its headquarters in Atlanta.

Philippine demand for oil declines

By NIEL V. MUGAS
The Manila Times Reporter

Philippine oil consumption as of end-December may have plunged to its lowest level in eight years due to skyrocketing petroleum prices and lower economic activity, the Department of Energy said Friday.

Zenaida Monsada, director of the Oil Industry Management Bureau, said domestic oil consumption may have plunged 10 percent last year from the 2004 level.

Although official inventories have yet to be tallied, Monsada said the decline was apparent with oil consumption falling six to eight percent as of the third quarter of 2005.

In the first half, oil consumption fell 6 percent to only 315,000 barrels a day.

At levels lower than that, the Philippines’ consumption and demand in the past year already fell to its lowest level in eight years, she said.

Government records showed oil consumption in the Philippines rose to 385,000 barrels a day in 1997, just before the Asian financial crisis.

"We really consumed more and we had very high projections then but [consumption] fell following the crisis," Monsada said.

Fuel use then went on a steady decline to 370,000 barrels as of 2000 before falling to a low of 323,000 in 2004.

Consumption of liquefied petroleum gas (LPG) may have also fallen 10 percent last year, Monsada said.

The department blamed the decline on rising prices, which prompted Filipinos to cut on their use.

Monsada said weak economic activity also contributed to the drop in fuel use.

"All countries experienced lower oil consumption, expect probably for China and India.

"While [the Philippines] had price reductions, the prices were still higher. We must note that prices were ranging in the P20s in 2004 but now prices are ranging in the P30s," she said, adding the price rollbacks in the final months of 2005 failed to perk up Philippine demand.

For 2006 the domestic fuel consumption may also fall if prices remain high, Monsada noted.

WESM inaugurates trading floor, paves way for comm’l operations
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The Wholesale Electricity Spot Market (WESM) formally inaugurated its trading floor yesterday, paving the way for the commercial operations of the facility later this month.

Once commercial operations begin, real time trading of electricity as a commodity will be conducted at the facility with the power producers, distributors and consumers participating in hour-to-hour transactions.

WESM can start commercial operations anytime after January 25, 2006 as soon as the Energy Regulatory Commission (ERC) approves the price determination methodology (PDM) for trading at the WESM.

Energy Secretary Raphael P.M. Lotilla today commended the Philippine Electricity Market Corp. (PEMC) for ensuring that the wholesale electricity spot market (WESM) in the Philippines is now technically and institutionally ready to start commercial operations.

"Once WESM is in place, we are on our way to empowering consumers to choose their electricity supplier from the least cost source," Lotilla added.

PEMC president Lasse Holopainen said that with the WESM trading floor ready for commercial operations, "we will now just await the final action of the ERC on WESM’s proposed PDM and market fees."

He said WESM is good to go following the completion of its system’s Luzon operational trials in mid-December, with the registered participants accounting for more than 10,000 megawatts of generation and 5,000 megawatts of demand from power distributors and industrial and commercial users of electricity.

Once commercial operations begin, the trading floor monitors will display, in real time, the total electricity supply generated and available on the Luzon and Visayas Grids as fed by the National Power Corporation and the various public and private independent power producers.

This data will be beamed side by side with the total electricity demand as reported by the various power distribution utilities, local electric cooperatives and bulk users such as manufacturing and commercial complexes.

The WESM trading boards will reflect the hour-to-hour price offers and bids submitted by the various spot market participants.

Acting as system operator, the National Transmission Corporation will then implement a dispatch schedule which matches the offers of generators with demand bids of customers, setting the "spot price" for electricity and facilitating the settlement of financial accounts.
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German investors inspired by 5-M power project

VILLANUEVA, Misamis Oriental — The successful completion of the 210-megawatt Mindanao coal-fired power project has encouraged the German government to further expand investment in the Philippine power sector.

German Ambassador to the Philippines Dr. Axel Weishaupt said this last Wednesday during the Boiler Pressure Test ceremony for 210-megawatt Mindanao coal–fired power project of STEAG State Power Inc., a joint venture of German firm STEAG AG and State Investment Trust, Inc.

The project, which costs 5 million, is being implemented under a Build Operate Transfer scheme with the National Power Corporation (NPC).

Ambassador Weishaupt and Energy Undersecretary Guillermo Balce are among the principal guest and led national and foreign dignitaries during the Boiler Pressure Test Ceremony of the 210 MW Mindanao Coal-Fired Power Plant Project.

"Next year in January is the official ceremony for the turnover of the 210 megawatt Mindanao coal–fired power project. I am sure others will follow," he said.

The German government also plans Wind energy and Solar energy project in Northern Luzon region in the future to save fuel, according to him.

The project proponents of the 210-megawatt Mindanao coal–fired power project has assured government of its commercial operations by end-2006.

STEAG State Power president Andreas Rubin said: "We promised that by the end of 2006, we would already complete this power plant.

Under the Philippine Energy Plan 2005 to 2014, existing power producers in Mindanao will not be able to meet the fast growing electricity demand for the island. The 210 megawatt Mindanao coal–fired power project is set to meet the challenge of attaining stability in the supply of electricity in the region and avert a potential power shortage in the island.

STEAG State Power communication officer Jerome R. Soldevilla said once the fully operational by the end of 2006, the power plant will supply additional electricity to the Mindanao grid representing about 15 percent of the island’s total power demand.

Meantime, marking a significant milestone in the construction of Mindanao’s first ever coal-fired power plant, the ceremony is, by way of tradition, a historic event in construction of thermal power plants. It is a special celebration peculiar to coal and gas-fired boilers of power plants for passing the officially witnessed and certified hydrostatic pressure test.

During the test, the highest allowable force is applied to prove the mechanical strength of the water/steam tubes and pipes of the steam generator, in this case 270 bar or 27Mpa.

Authorized agencies for acceptance and certification of this test are the Philippines’ Department of Labor and Employment (DOLE) and the American Society of Mechanical Engineers or ASME inasmuch as the boilers were designed, manufactured and erected in accordance with the standards set by these entities.

The boiler is the power plant’s biggest component unit and generates pressurized and super heated steam to be used in the energy conversion process in the steam turbine which finally leads to electricity generation by the connected generator.

The boiler ceremony was highlighted by the hammering of the assigned eight-digit serial numbers to the data plates of the two boiler units led by Philippine and German government dignitaries, officials of the project company STEAG State Power Inc.or SPI and its majority shareholder, the Germany–based power company STEAG Aktiengesellschaft and local shareholder, State Investment Trust, Inc. Some 300 local and foreign guests witnessed the affair.

Plans for wind farm sought


THE Department of Energy wants to see the business plans of Trans-National Diversified Group and the Nation Petroleum Corp., two companies applying for the right to put up a wind farm in Tagaytay, to prevent conflicts in the choice of location for the project.
Mario Marasigan, director of the Energy Utilization Management Bureau, said a conflict might arise between the proposed wind-farm projects of Trans Asia Corp. and the local government of Mercedes, Camarines Sur.
He said the energy department will ask the companies to submit their concrete business plans before March 2006 during which the government will identify sites that will be offered in its second wind contracting round.
Both companies had submitted to the department in December last year letters of interest to put up wind farms.
--Niel V. Mugas

[I]Filipino firm eyes Malampaya oil[I]

Publicly listed South China Resources Inc. wants to partner with the Philippine government for the development of the Malampaya oil rim despite the project’s perceived lack of commercial viability.

Edgardo Reyes, South China chairman, said the company is interested in developing the Malampaya oil rim, which is estimated to contain 25 million to 40 million barrels of oil.

"We’re one of those that responded to the government’s invitation to develop the oil rim. We have indicated our willingness and desire to participate in that project as soon as the government finally decides what it wants to do with that particular project," he said, adding South China is the lone Filipino company that has expressed interest in partnering with PNOC-Exploration Corp. (PNOC-EC), the exploration arm of publicly listed Philippine National Oil Co. (PNOC).

Reyes also disclosed that South China has hired technical experts to draft possible approaches on extracting the oil reserves.

The Department of Energy earlier said the oil component would require $500 million to $800 million, whereas revenues are expected to reach $1.25 billion, assuming an output of 25 million barrels at $50 a barrel.

Earlier, Malacañan directed PNOC-EC to develop Malampaya’s oil, after Shell Philippines Exploration B.V (SPEX) and Chevron Texaco, each of which holds a 45-percent stake in the natural-gas component of the Malamapaya project, relinquished their rights to develop the oil rim.

The SPEX-led consortium, which also includes PNOC, still holds the exclusive right to the natural-gas component, requiring PNOC-EC to protect the natural-gas reserves while it is extracting oil from the field.

German investors inspired by 5-M power project

The figures for this article seem to be wrong. The benchmark price for the power industry is around US$1 million for every MW of capacity built. For coal fired plants, it is at this level. It's more expensive for renewable energy plants such as wind and geothermal.

5-M (dollar or peso) is just way too low for a 210-MW plant.

I saw this images from the greenpeace website .:)

http://www.greenpeace.org/raw/image_full/seasia/en/photosvideos/photos/majestic-view-of-the-wind-farm.jpg
Majestic view of the wind farm in Ilocos Norte, around 500 kilometers north of Manila. The 25 megawatt wind farm, owned and operated by Danish firm Northwind, is the first of its kind in Southeast Asia. According to Greenpeace and the Global Wind Energy Council, the Philippines is poised to become the leading wind power producer in Southeast Asia with potential of up 70,000 MW of clean renewable energy from wind. The value of the global market for wind turbines is predicted to expand from the current 8 billion euros to an 80 billion euro market by 2020.



http://www.greenpeace.org/raw/image_full/seasia/en/photosvideos/photos/a-woman-gathers-firewood-on-th.jpg
A woman gathers firewood on the shores close to the wind farm of Ilocos Norte, around 500 kilometers north of Manila. The 25 megawatt wind farm owned and operated by Danish firm Northwind, is the first of its kind in Southeast Asia.

great find alitaptap! i want to visit those windmills someday.. it looks simply breath-taking

it's cool to have windmills here at pinas, ok nga sya kase makakatipid pero disadvantage nito eh mahal magpalagay and mahal ung maintenance nya...

hehe it's funny greenpeace advocates them, some other environmental group does not like them for visual pollution daw! haha, wala talagang panalo minsan. I hope di ito paputukin ng npa.

More news about Philippine wind power projects. :)


Danish government ready to fund RP wind power projects
By Donnabelle L. Gatdula
The Philippine Star 02/04/2006

The Danish government has reiterated its keen interest in supporting the Philippine government’s wind power projects, the country’s top energy official said.

"They have expressed continuing support for wind power development in the country," Energy Secretary Raphael P.M. Lotilla said. He recently met with Danish government officials led by Danish ambassador to the Philippines Borge Petersen.

In particular, he said the Danish government is keen in supporting the Philippine National Oil Co. (PNOC)-Energy Development Corp.’s 40-megawatt (MW) wind power project in Ilocos.

Lotilla said Petersen also relayed the strong interest of some Danish companies to help develop the wind power industry in the Philippines.

"He reiterated the continuing support for wind power from Danish companies. They remain interested in projects in the Philippines like the PNOC wind projects," the energy chief said.

Last year, the DOE launched the country’s First Philippine Wind Power Contracting Round, offering promising wind sites for development.

With great wind potential as confirmed in numerous studies, the country aims to become the leading wind energy producer in Southeast Asia.

Two wind power projects are already in the pipeline. The 25-MW wind farm by NorthWind Power Development Corp. and the 40-MW plant by PNOC-EDC.

A 118-kilowatt (kw) wind hybrid project located in Batan Island in the northern province of Batanes is already in commercial operation.

In December 2004, the DOE awarded five pre-commercial contracts (PCC) for wind projects. Three were given to Philippine Hybrid Energy Systems Inc. for wind projects in Marinduque; Baleno, Masbate; and Tablas, Romblon with a combined 30MW of capacity.

Trans-Asia Renewable Energy Corp. were awarded contract to explore, assess, harness and develop wind potential in Sual, Pangasinan for 30MW of capacity; and San Carlos Wind Power Corp. in San Carlos City, Negros Occidental for another 25MW.

PNOC-Energy Development Corp. will be developing wind potential in Abra de Ilog, Mindoro Oriental.

Under the wind contracting round, a foreign-owned company interested to apply for a wind power project contract must form a joint venture or consortium with a Filipino-owned company/companies. The foreign-owned company will only have a maximum 40-percent participating interest in the consortium.

Danish government ready to fund RP wind power projects
By Donnabelle L. Gatdula
The Philippine Star 02/04/2006

The Danish government has reiterated its keen interest in supporting the Philippine government’s wind power projects, the country’s top energy official said.

"They have expressed continuing support for wind power development in the country," Energy Secretary Raphael P.M. Lotilla said. He recently met with Danish government officials led by Danish ambassador to the Philippines Borge Petersen.

In particular, he said the Danish government is keen in supporting the Philippine National Oil Co. (PNOC)-Energy Development Corp.’s 40-megawatt (MW) wind power project in Ilocos.

Lotilla said Petersen also relayed the strong interest of some Danish companies to help develop the wind power industry in the Philippines.

"He reiterated the continuing support for wind power from Danish companies. They remain interested in projects in the Philippines like the PNOC wind projects," the energy chief said.

Last year, the DOE launched the country’s First Philippine Wind Power Contracting Round, offering promising wind sites for development.

With great wind potential as confirmed in numerous studies, the country aims to become the leading wind energy producer in Southeast Asia.

Two wind power projects are already in the pipeline. The 25-MW wind farm by NorthWind Power Development Corp. and the 40-MW plant by PNOC-EDC.

A 118-kilowatt (kw) wind hybrid project located in Batan Island in the northern province of Batanes is already in commercial operation.

In December 2004, the DOE awarded five pre-commercial contracts (PCC) for wind projects. Three were given to Philippine Hybrid Energy Systems Inc. for wind projects in Marinduque; Baleno, Masbate; and Tablas, Romblon with a combined 30MW of capacity.

Trans-Asia Renewable Energy Corp. were awarded contract to explore, assess, harness and develop wind potential in Sual, Pangasinan for 30MW of capacity; and San Carlos Wind Power Corp. in San Carlos City, Negros Occidental for another 25MW.

PNOC-Energy Development Corp. will be developing wind potential in Abra de Ilog, Mindoro Oriental.

Under the wind contracting round, a foreign-owned company interested to apply for a wind power project contract must form a joint venture or consortium with a Filipino-owned company/companies. The foreign-owned company will only have a maximum 40-percent participating interest in the consortium.

great news regarding alternative sources of energy

Let the oil flow
BIZLINKS By Rey Gamboa
The Philippine Star 02/06/2006

Wow! If there is one good thing that rising international oil prices is bringing to the country, it is the doubling in the value of the country’s Malampaya natural gas reserves, which was discovered offshore of Palawan in 1989 and inaugurated in 2001.

During the period when the project was being readied for commercial operations, the energy department together with its service contractor Shell Philippines Exploration BV had already been trumpeting estimated revenues of $700 million a year and $13 billion in royalties over the field’s 20-year life.

At that time, oil prices – on which the natural gas gate price is pegged – was averaging for the longest time at about $25 per barrel; today, the whole world is agonizing over when crude oil prices will stabilize. It had just recently breached another high at $69 per barrel after news that Iran was strengthening its nuclear program.

Nobody in his right mind now wants to venture a guess as to how much crude oil would be in 12 months. But even as oil traders are acting shell-shocked by the unpredictability of oil pricing nowadays, the pleasant side of the equation – and very quietly discussed – is the windfall on oil producers. But this deserves another column.

Yes, even on such a comparatively "modest-sized" natural gas field like Malampaya, the benefit of a $65 crude barrel today is easily more than a doubling of revenues and savings. Viewed against our government’s fiscal reckoning, this windfall of sorts is no small bonanza.
Oil rim rhetorics
This brings me to the oil, estimated to be at about 200 million barrels, found in the Malampaya natural gas field. Consortium leader SPEX has been harping on the Malampaya oil deposit as "sub-commercial," or in plain words, not worth their time and attention.

If crude prices were just conservatively pegged at $50 per barrel, the oil trapped in the offshore Palawan natural gas find would already be $10 billion. This might be peanuts for SPEX and its major partner Chevron-Texaco, but definitely not for the Philippines.

As energy secretary Popo Lotilla succinctly states, "even if this is just 20 million barrels, this will still be a big help to the country." The President has just issued an executive order assigning PNOC-EC, which has a minority stake in the Malampaya consortium, to lead the search for interested parties.

With the high probability that world crude price levels will not drop below the $50-mark, PNOC-EC should actively look for partners who will be willing to invest in the project. The country should be able to benefit from the trapped Malampaya oil in three to five years.
Two sides of investing
There is an increasing number of new technologies available that will allow for efficient extraction of oil from natural gas fields no matter how thin the layer or how deep it is. More importantly, it can be viable for small operators who will be satisfied with earning a little.

The big Malampaya consortium partners, of course, would only scoff at the amount that they can expect to earn from the oil rim given the doubling – perhaps even tripling – of their earnings from the natural gas reserves. Why indeed would they want to earn less for any new investment?

At least they had the decency to put up an effort, even if it was just for show, and ask the government to extend a 100-percent cost recovery guarantee on any new investment that would be spent to immediately bring out the oil.

While the oil column has potential reserves of more than 200 million barrels, SPEX had earlier intimated that 30 million could be immediately recovered. A study that the service contractor prepared in 2001 showed that as much as 25,000 barrels per day could be produced, rising to 50,000 barrels per day after two years. This would have accounted for 15 percent of the country’s crude oil imports.

But of course big boys like SPEX and Chevron-Texaco will not want to compute in cents when they are seeing unprecedented earnings just by sitting on 4.3 trillion cubic feet of gas and 120 million barrels of condensate.

Incidentally, the natural gas that Shell and Chevron-Texaco are pumping out of Malampaya is sold to three power plants that supply electricity to half of the Luzon grid or almost a third of the entire country. These three power plants belong to the now-infamous band of independent power producers that have various versions of the take-or-pay provision, one of the major reasons cited for the country’s high electricity cost.
Second life for old fields
In the 70s, after the Philippine government announced a more generous package for oil exploration prospectors, several new oil-bearing fields were discovered. They were generally located offshore but in shallow water. (Malampaya is considered a deep-water discovery.)

The first "commercial" oil find in offshore west of Palawan, the Nido oil fields, peaked at a combined 42,000 barrels per day. This was followed by Matinloc in the late 70s, which reached a peak production of 6,800 barrels per day. Both fields have contributed some 28 million barrels of oil.

Today, both fields are no longer producing oil after facing formidable problems, including salt-water intrusion. The energy department, however, is optimistic that at current crude prices and new oil extraction technologies, Nido and Matinloc as well as the later oil discovery, Linapacan, could be given a new breath of life.

There are quite a number of small, independent oil field contractors that see opportunities in our old wells, as well as in those fields that had tested positive for oil but were never really developed for production. It is high time that we revisit these neglected potential assets, especially now that crude oil prices are at their record high levels with no dramatic drop expected in the foreseeable future.

We may never join the OPEC league, but at least we can say we have had our humble share of oil and gas – and got them through perseverance and relentless pursuit for self-sufficiency despite heavy odds.

Flying V building biofuel hub

Flying V Corp. on Tuesday announced it will put up the Philippines’ first Bio-Fuels Center to dispense alternative fuels such as coco-biodiesel and bio-ethanol.

The center will be constructed at the Philippine Coconut Authority (PCA) compound at the Elliptical Road in Quezon City.

A company report said the Bio-Fuels Center will serve as an exhibition center for the use of various alternative fuels. It will also dispense preblended coco-methyl ester (CME) or coco-biodiesel under the brand name Envirotek Bio-Diesel Premium. It will also dispense fuel ethanol (E-10) for gasoline-run vehicles. Smoke emission testing facilities shall also be available at the Center.

The company, however, declined to disclose how much it will spend for the center.

Groundbreaking ceremonies for the facility are scheduled next week.

The Bio-Fuels Center reflects the company’s commitment to advancing the use of alternative fuels in the Philippines.

"The construction of the Flying V Bio-Fuels Center, the first in the country, reflects Flying V’s pioneering and long-term commitment to support of the government’s alternative fuels program," Paul Tanjutco, Flying V chief operating officer, said. "The center will hopefully increase the public’s awareness of bio-fuels, particularly coco-biodiesel and its impact to the Filipinos’ way of life."

Tanjutco said the center will showcase the use of E-10, the mixture of 10-percent ethanol with gasoline.

The PCA allowed the Bio-Fuels Center in its compound via a memorandum of understanding it signed with Flying V.

Jesus Emmanuel Paras, PCA administrator, said the center will boost multisectoral efforts to promote and propagate the use of alternative fuels, particularly coco-biodiesel as the answer to the now critical problem of air pollution in the country.

Coco-biodiesel has been extensively tested by leading national and international testing agencies and proven to greatly reduce harmful smoke emission, increase fuel mileage and enhance engine performance.

Flying V has 42 stations nationwide offering biodiesel. Niel V. Mugas

taken from abscbn-news.com..

Canadian firm to put up wind power plants in RP

By NIEL V. MUGAS
The Manila Times Reporter

Allied Energy Logistics has firmed up plans to put up at least three wind-based generation plants in the Philippines, a Department of Energy (DOE) official said.

Mario Marasigan, Energy Utilization Management Bureau director, said the three wind-based power plants would have a combined generating capacity of 100-megawatts.

The company has chosen Ilocos Norte, Cavite and Zambales provinces as sites for its planned power plants, the DOE official said.

"The company has been expressing its desire to put up wind-energy plants here as early as the last quarter of 2005 but it is only now that it has firmed up its plans," he said, adding the Canada-based firm formally proposed its project early this month.

Marasigan said Allied Energy would have to invest about $250 million for the project. This is based on the DOE’s benchmark rate of $2.5 million requirement for every megawatt of wind-based energy generated.

Energy Secretary Raphael Lotilla said Allied Energy’s project will help ensure the Philippines’ energy independence and reduce dependence on high-cost fossil fuels for electricity production.

The country is also angling to become Southeast Asia’s leader in wind-energy technology.

Earlier, Northwind Power Development Corp., installed a 25-5 megawatt wind-based plant in Bangui, Ilocos Norte province.

Philippine National Oil Co.-Energy Development Corp. likewise is setting up a 40-megawatt wind power plant in nearby Burgos town to complement the existing facility.

The government plans to offer 16 wind sites with a combined generating capacity of 400 megawatts during the second wind-energy contracting round slated in March this year. Last year, the government offered a dozen sites with a generating capacity of 345 megawatts.

The Philippines has an estimated potential of 7,404 megawatts covering 1, 038 wind sites according to a 2003 study. In Luzon alone, 686 potential sites in 28 provinces have been identified with a total capacity of 4,900 megawatts. Some 305 sites exist in the Visayas with a capacity of 2, 168 megawatts, while 47 sites are known in Mindanao with a potential 336 megawatts in generating capacity.

if we harness all the wind and hot air from each politician, we will have more than enough to supply this country for more than a lifetime hehehehe!!!

kidding aside, it is really good that our government is seriously looking into the tapping of out wind energy potential as a source of power. especially with the continuous rise in the price of oil in the world market, we should find more ways to reduce our dependency on this black gold for our energy needs.

hahaha.. u hav a point ronram.. :P

manileno, i cant see your pics:(

2 Canadian firms eye wind power project in RP
By Donnabelle L. Gatdula
The Philippine Star 02/21/2006
http://www.philstar.com/philstar/NEWS200602210711.htm

Interesting Reading


DEMAND AND SUPPLY By Boo Chanco
The Philippine Star 02/22/2006

Energy Czar
I haven’t heard from my ex-boss, former Energy Minister Ronnie Velasco, for a long time. One time, when I was VP of News at ABS-CBN and he was invited as a guest in one of our programs, he studiedly ignored me even when he had to wait in my office to be called to the studio. Someone told me later he had a "hinanakit" with me, so I left it at that. For a Western-style no nonsense manager, he is terribly matampuhin.

Last year, he attended the reunion of former Petron/Energy Ministry/PNOC employees and I was surprised he asked a former SVP to invite me to join their table. We got to talking not just about old times but about how the current guys in the government’s energy bureaucracy seem to be clueless about the importance of their jobs.

The next time he called me was to ask me to read the first draft of his book, a sort of memoirs of his days as Energy Czar. It was interesting to read about the things we all did together in a time of crisis in energy some 20 years ago. It all seemed particularly relevant because another crisis of that sort is hovering over our present and our future.

Because the book was also about his management style, I wondered if managers like him went out of style. We can call Marcos the greatest creep that ever crept this country, specially on this 20th Anniversary of EDSA 1, but the quality of his cabinet is tops – from Cesar Virata, Paeng Salas, Bong Tanco, Bobby Ongpin, yes... even Juan Ponce Enrile and Ronnie Velasco. Politics aside, they delivered on their mandates. Today, the Cabinet members are lightweights, in comparison.

Ronnie Velasco is one excellent manager of people and resources. As I read the first draft of his manuscript, I remembered the sense of mission and professionalism he drilled into our subconscious. He only spoke to us once about an assignment and the next time he spoke to us about it, was to hear our report on what we have accomplished.

No ifs, no buts. If you value your job, the only acceptable report is one of success. The pressure was tremendous but those of us who reported directly to him, thrived masochistically on it. Twenty years after, the boss acknowledged in his memoirs that one of the secret factors of his success is the excellent staff he had in Petron and PNOC. Well, (ahem) that’s us!

His memoirs, to be launched tomorrow at the Nielsen Tower, recalls how we strategized and implemented an energy program designed to make us energy self reliant in a world energy environment that was more problematic than today, if only because the experience was totally new.

By the time he left government service in the wake of EDSA 1, we had put in place a pretty good program that had reduced our almost 100-percent dependency on foreign oil by half. We knew more about our domestic energy resources too... from oil to coal and, most particularly, geothermal. We have also done basic work on renewables like mapping the country for wind power, and pioneered studies on how to use biofuels like ethanol and coco diesel. We also tested the use of solar cells in remote barangays. We even had an expensive flirtation with nuclear power.

It was a pity that after EDSA 1, the Cory administration threw the energy plan we prepared into the trash heap. The country paid dearly for this act of political myopia. It didn’t take long for serious power blackouts to plague the economy in the late 80s and early 90s. If only they pursued the program we had evolved under Velasco, if only they built on it and given it the importance it deserved, maybe we wouldn’t have had the blackouts which were used by FVR as reason to sign all those IPP take or pay contracts that solved our emergency need for power but produced a glut and raised our power cost so much that it continues to hobble the economy today.

But I do not totally agree with everything my former boss wrote in his book. For instance, I take issue with his view that privatizing Petron is a mistake and selling down Napocor’s assets to the private sector is another mistake. The problem with Velasco is that he was Energy Czar during a martial law era, and he cannot imagine how an energy crisis can be effectively handled in a free market environment, with a freely elected Congress and with a free press.

Now 78 years old, Velasco must be reminded that times have changed and with globalization a continuing reality, privatizing Petron and Napocor is the only way to go. He says privatizing these energy assets reduces government’s ability to influence the energy market. I say, government today wouldn’t know how to use these assets anyway, to influence the energy market for the good of consumers. In fact, government would mismanage them so badly, as it continues to mismanage Napocor, to the detriment of the taxpayers. Government’s role today is simply to make sure the free market works.

I wonder if Velasco would have been as effective under today’s political environment. My guess is, not as effective as he had been under Marcos in a Martial Law regime, but because he is a world class manager, he would still do a lot better than the guys who have been trying to fill in his shoes all these years after EDSA.

Velasco’s book reads somewhat like an extended ego trip and may even seem defensive in parts for those who do not know Velasco well. But this failing can be forgiven if only because this book delivers an important message to current and future leaders that all it takes to handle the energy crisis is effective leadership. He did it in his time, there is no reason why we cannot do it now or in the years to come. We need an energy czar who knows his job the way Velasco did.

THE Department of Finance is considering a proposal for consolidating state power assets into one company and listing the company on the stock exchange, Finance Secretary Margarito Teves said.

Teves said the proposal, filed as a legislative bill by Representative Jose Salceda, was "attractive" and the finance department would study the legal issues concerning it.

"We have to make sure first what the law says," he told reporters. "If it is within the boundaries of the law, then we can push for it."

He said the department was waiting for a formal copy of the proposal.

Salceda, who serves as an economic adviser to President Gloria Macapagal-Arroyo, proposes that National Power Corp. (Napocor) and National Transmission Corp. (Transco) be consolidated into a Philippine Power Transmission and Generation Corp. and to offer shares of the new company on the stock exchange.

He said officials of privatization agency Power Sector Assets and Liabilities Management Corp. had given the proposal a favorable response and were ready to make a formal proposal to the Joint Congressional Power Committee, which oversees the privatization of the government's power assets.

Salceda said privatization of the power sector should be given due attention since it was partly to blame for the government's budget deficit and debt problems. He noted that the government spent some P225 billion in the past five years to pay debts of National Power Corp.
Source: www.inq7.net, 24 Feb 2006

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I have reservations in privatizing NPC generation assets as one company. Experience in the UK has shown that firms that can exert market power on an electricity spot market will do so. There have been numerous papers discussing UK's experience in the early 90s when they privatized their power industry. One of the things that they found out is that there were too few power companies that controlled a large part of the generation industry that they could dictate power prices long after it had been "deregulated".

This issue of market power was addressed in the EPIRA (the law deregulating the electricity industry). Under this law, no single company could own 30% of a major grid's generation assets or 25% of the country's generation assets. Such preconditions were needed to ensure a level playing field for the Wholesale Electricity Spot Market (WESM).

Having a single large company just defeats the purpose of having an electricity spot market and open access because one single player will have a dominant role. Not only will it own more than 30% of the generating assets in all 3 major grids but it will also own the transmission assets of all three grids. Such a scenario will not be conducive to a competitive electricity market.

The purpose of deregulating electricity markets is to make it easier for private companies to enter the market and therefore make the market competitive. Competition in the market is hoped to bring in lower electricity rates in the long term. Having a single dominant player just defeats this purpose.

I used to have such a high opinion of Cong. Joey Salceda before. He was the highest paid investment analyst during the 90s. However, I don't think he studied his proposal on the power industry very well.

I understand, Transnational Diversified Corp signed an MOU this morning with the Department of Energy on the wind development in Cavite, Ilocos Norte and Subic. Initially they have to put up at every site a 40-meter meteorological tower to measure wind speed, wind direction, temperature every ten minutes 24/7 for 2 years at the very least. Next, they need to analyze the wind data as to the economic viability of the project before they could proceed with the full feasibility study. Then they still have to get the best financing and technological partner. GOOD LUCK to you TDC!!!

I talked to this company that provides renewable energy systems, and their products are rated to last for 50 years and come with a 25 year guarantee. A small windmill that can provide 400w costs US$600, while the equivalent solar panel is even cheaper per watt. Larger windmills and panels cost more of course but also provide more power and efficiency. Solar + wind = a pretty acceptable power source in any weather.


Hey JudeD, does this company have a website by any chance because I'd love to learn more. :D

hey guys may tanong ako, paano kapag may bagyo at sobrang lakas ng hangin, are these windmills gonna stop operating? kasi nakakatakot makita ang mga blades nung windmill na nagliliparan...