PART III: INFRASTRUCTURE SUPPORT FACILITIES

     Chapter 20. Power Generation, Transmission and Distribution

I. Summary

   The usual wear and tear coupled by the limited funds for rehabilitation prevented the existing geothermal power plants from achieving its maximum generating capacity. 

 

   The total dependable generating capacity of the plants was only 47.87 percent of its installed capacity. The decommissioning of plants and plant shutdowns were also contributory to the decrease in the generating capacity.

 

   The privatization of the steam and electric generation for Tiwi Geothermal Power Plant (TGPP) resulted to a 97 percent generating capacity.  This was despite the plant’s initial commissioning in the 1970s.

 

   Barangay energization for cooperative-covered barangays was also at its peak in 2008 with 142 barangays energized. Energization for off-grid barangays was also continuously undertaken through the various energization efforts of the National Power Corporation –Small Power Utilities Group (NPC-SPUG).

 

II. Assessment

 

Generation

 

   The Philippines is the second-largest producer of geothermal energy in the world after the United States. Bicol’s geothermal sources, BacMan and Tiwi, are the major contributors. 

 

   In 2008 the total dependable capacity of the generating plants (geothermal and hydro) was 243 MW  (47.87%). This was way below the total installed capacity of 507.60 MW (Table 20.1).  From the original 504 MW installed capacity of geothermal power plants, its dependable capacity decreased to 239.40 MW (47.50 percent) because of plant shut downs, decommissioning of units and other factors.

 

   Notable was the 97 percent generating capacity achieved by  the Tiwi Geothermal Power Plant (TGPP) due to the rehabilitation of its units, counting out two generating units (decommissioned and for long term preservation).  Bacman, however, did not fair well with the shutting down and deactivation of two of its units. It only achieved 9 percent dependable capacity.

Table 20.1 Status of Generation, Geothermal and Hydro, Bicol Region,

As of December 2008

   TGPP consisted of six generating plants. Units 1, 2 and 5 achieved load range of 40 MW to 54 MW. These were based on either steam or unit capability and on steam availability.  Unit 3 was deactivated/shutdown in November 2006.  This was under long term preservation by Asset Preservation Department (APD) of the NPC.  Unit 4 was decommissioned on the 1^st Amendment of the NPC/PGI/PSALM compromised agreement under section 7.1c dated October 13, 2003.  Unit 6 was shutdown due to Chevron’s request for steam field repair. 

 

   Bacman 1 Unit 2 was shutdown in December 2005 due to turbine bearing vibration.  It was synchronized in February 2008 but tripped again. The unit therefore remained on shutdown. BacMan 2-Cawayan plant was also on shutdown due to machinery breakdown. 

 

   Based on the stored heat capacity of the blocks in Manito and Inang Maharang, a 40 MW development in the Kayabon area could be confirmed through exploratory drilling.  The Energy Development Corporation (EDC) scheduled the drilling of 4-6 exploratory wells in Kayabon area in September 2008 but was deferred due to the current global financial crisis.

 

   Privatization of NPC’s remaining assets was undertaken during the year.  The steam generation component of the Philippine National Oil Company (PNOC) was privatized.  Steam generation is now being undertaken by the EDC specifically for BGPF.

 

   The Tiwi-Macban Geothermal Power Package was successfully bid out in July 2008.  The notice of award was issued and the certificate of affectivity was handed over to AP Renewables, Inc. in August 2008.  The Power Sector Assets and Liabilities Management Corporation (PSALM) would continue with the selling of NPC’s decommissioned power plants and non-operating assets.

 Transmission

   The PSALM would formally turn over in January 2009 the 25-year concession of the National Transmission Corporation (TransCo) to the National Grid Corporation of the Philippines (NGCP).

 Distribution

   Under the barangay energization, the sub-sector aimed to cover the remaining barangays in order to achieve the 100 percent energization in the region.

 

   In 2008, 98.50 percent of barangays or 4.4 percent increase compared to the previous year was energized. This was equivalent to 3,359 barangays against the 3,410 target potential barangays (Table 20.3).

The province of Masbate served by Masbate Electric Cooperative, Inc, and Ticao Island Electric Cooperative, Inc. had the least energized barangays at 94.70 percent and 81.94 percent, respectively. 

 

   A total of 142 barangays were energized with a cumulative accomplishment of 175 barangyas (60.76%) from year 2004.  There was therefore a significant increase in terms of newly energized barangays in 2008.   

 

   The energization of off-grid barangays in the provinces of Masbate and Catanduanes was undertaken by the National Power Corporation-Small Power Utilities Group (NPC-SPUG).  These were the non-cooperative covered barangays.

Table 20.3 Barangay Energization, Bicol Region, 2007 and 2008

III.  Prospects and Trends for 2009 

 

   With the privatization of the generation and transmission assets a better performance from the energy sector, specifically the generation sub-sector, is expected.  Better power supply and better services to the end-users is anticipated.

               

   The clamor for lower power rates, with Bicol being a contributor to the Luzon grid, still persists.  This, however, will require policy decision with the existing one grid policy.

 

   Increased geothermal exploration and production activities are targeted to address the low performance of the existing plants. The BacMan target expansions will be composed of three geothermal steam production and power plant construction and operation projects, i.e. the Kayabon at the Manito side and Rangas and Tanawon at the Sorsogon sector with a combined target of 120 megawatts or 40 megawatts each. Of the 40 megawatt output of the plant, 20-megawatts of Kayabon project will be supplied to Albay by way of a transmission scheme.  The scheme will lower the power rate in the province by more than 50 percent since it will exclude extra charges being imposed by the cooperative and the NPC. The other 20-megawatt will go to the Luzon Grid. EDC is also open to the same scheme of power supply costing and distribution in Sorsogon which will host the Tanawon and Rangas expansion projects.  For TGPP, steam generation is expected to increase by 10 percent or 165 MW in 2009 with the on-going drilling of two additional wells. 

 

   The NPC is considering a bold measure called “Island Operations” to save Bicol from being disconnected from the rest of the Luzon grid due to damaged transmission towers especially after typhoons.  Island operations mean cutting off the Bicol region from the rest of the Luzon grid and providing it with dedicated power source which will make Bicol less prone to transmission-related power outages.

 

   DOE will still continue to increase and accelerate access to electricity services in unenergized barangays.  It will pursue to energize the remaining 51 electric-cooperative covered barangays and the 32 non-EC covered barangays to achieve total barangay electrification in 2010.

 

   As part of the expanded rural electrification program, missionary and off-grid electrification will be implemented through the extension of distribution lines of electric cooperatives or installation of mini or micro-grids or decentralized systems in the small islands and unviable areas.  The component projects are SPUG’s diesel micro-grid projects in Camarnes Sur and Masbate. In the Missionary Electrification Development Plan (2009-2013), it intends to increase the existing service hours in Batan Island, Rapu-Rapu, Albay from 12 hours to 18 hours in 2009 and to 24 hours in 2013.  Service hours for mainland Rapu-Rapu, Albay is targeted to be increased from 18 to 24 hours by 2009. The PRES project in Masbate will still be pursued. Capacity additions of 0.30 MW is also targeted in Ticao area in 2009 and 2011.

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