DOE pushes bid to lease modular gen sets

MANILA, Philippines - The Department of Energy (DOE) is pushing its proposal to lease or purchase modular generator sets to avert a looming power shortage in the summer of 2015 as it maintained that the Luzon grid has a supply and reserves shortage of 700 megawatts.

In a press briefing yesterday, Energy Undersecretary Raul Aguilos said while the supply situation has improved, there is still a shortage based on the latest estimate of available supply and projected demand for next summer.

“We have a power supply shortage or problem of 700 MW. That is a conservative estimate,” Aguilos said.

As such, director Mylene Capongcol of the DOE’s Electric Power Industry Management Bureau said they continue to propose the lease or rent of modular generator sets to avert a looming power shortage in the summer of 2015.

She said that while the department is not against the so-called Interruptible Load Program (ILP), it continues to push for the lease or purchase of modular generator sets.

“We would still propose to include that option (gensets). For the ILP, we need to know how much ILP can really contribute as well as the new power projects. Anyway, (the gensets) would still be the last resort,” Capongcol said.

DOE director Irma Exconde said the problem of reserves is the problem of supply.

Officials made the clarification following a hearing at the House of Representatives on Monday.

After the hearing, House committee on energy chairman Reynaldo Umali said he was not convinced the supply situation was critical.

He said the option to lease or rent modular gensets would no longer be considered.

Instead, Umali said the option that would be considered is the ILP option.

Under the ILP, large power users would use their own generator sets to ease pressure on the grid.

President Aquino has asked Congress for special powers, through Section 71 of the Electric Power Industry Reform Act of 2001 to ease a looming power shortage in the summer of 2015.

However, Congress has yet to decide on the President’s request.